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HomeMy WebLinkAbout05222023 City Council Meeting Packet Seward City Council Agenda Packet loW x� Photo credit: Karen Corrigan DoubCe Cruise Shp Day Monday, May 22, 2023 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska CITY COUNCIL MEETING AGENDA r� City Council Chambers,410 Adams Street k Please silence all cell phones during the meeting Mayor Sue McClure Council Member Randy Wells City Manager Janette Bower Vice Mayor John Osenga Council Member Kevin Finch City Clerk Brenda Ballou Council Member Liz DeMoss Council Member Robert Barnwell City Attorney Brooks Chandler Council Member Mike Calhoon Monday,May 22, 2023 at 7:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING (Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.) 5. APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of 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. 2023 Historic Preservation Award to Tiffany & Al Siller. ...................................... Pg. 4 2. National Historic Preservation Month. ............................................................ Pg. 5 3. Seward Pride Weekend. .............................................................................. Pg. 6 B. City Manager Report .............................................................................. Pg. 8 C. City Clerk Report ................................................................................. Pg. 66 D. City Attorney Report E. Other Reports and Announcements —None F. Presentations (Presentations are limited to ten minutes each, excluding Q&A, and are limited to two per meeting unless increased by council.) 1. Seward Community Foundation Presentation by David Paperman. 2. Electric Infrastructure Update By Bryan Thrall and James Unrein. ............................ Pg. 68 1 7. CONSENT AGENDA A. Minutes of Preceding Meeting *1. Approval of the May 8, 2023 City Council Special Meeting Minutes. ....................... Pg. 77 *2. Approval of the May 8, 2023 City Council Regular Meeting Minutes. ....................... Pg. 81 B. Introduction of Ordinances *1. Ordinance 2023-015,Amending Seward City Code Title 6 Purchasing Contracts and Professional Services. ................................................................................................ Pg. 96 C. Resolutions *1. Resolution 2023-063, Authorizing Signatures For All City Bank Accounts And Rescinding All Previous Resolutions In Conflict Herewith. ....................................................... Pg. 115 *2. Resolution 2023-064, Authorizing The City Manager To Enter Into A Contract With The Financial Engineering Company In An Amount Not-To-Exceed$55,350 To Conduct An Electric Rate Study So That Customer Rates Can Be Set Appropriately To Recover Expenses And Generate A Reasonable Financial Return To The City's General Fund. ..................... Pg. 122 *3. Resolution 2023-065, Authorizing The City Manager To Enter A Financial Advisory Agreement With PFM Financial Advisors LLC, And Appropriating Funds. ............................... Pg. 131 *4. Resolution 2023-066, Authorizing The City Manager To Enter Into A Contract With Seward City Tours For The Operation Of The Seasonal Shuttle Transportation Services For The 2024, 2025, And 2026 Seasons, In A Total Amount Not To Exceed $827,820, And Appropriating Funds. ................................................................................................ Pg. 150 *5. Resolution 2023-067, Authorizing The City Manager To Enter Into A Professional Services Agreement With Altman, Rogers, & Co For External Audit Services, And Appropriating Funds. .......................................................................................................... Pg. 194 D. Action Memoranda *1. Action Memorandum 2023-005, Authorizing the City Manager to Approve Placement of a Memorial on the Jesse Lee Home Parcel By the Seward Community Library Association. Pg.219 E. Other Items *1. Appoint Art LeMaster, Tanguy Libbrecht, and Sue Ward to the Historic Preservation Commission with terms to expire May, 2026. .................................................. Pg. 225 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—None B. Resolutions Requiring Public Hearing 1. Resolution 2023-062, Recommending Kenai Peninsula Borough Approval of the Preliminary Replat of Fourth of July Creek Subdivision, Seward Marine Industrial Center (SMIC), 2 Unsubdivided Remainder of Block 6, Located at 110 Olga Street; Creating Two Lots, Lots 4 & 5, Block 6, Fourth of July Creek Subdivision SMIC, Duchess Replat. ...................... Pg. 228 9. UNFINISHED BUSINESS —None 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 —None B. Other Items I. Small Business Development Center(SBDC) 1st Quarter 2023 Report. .................... Pg. 254 2. Happy Youth Programs&Educational Resources (HYPER)Financial Report through March 31, 2023. ................................................................................................. Pg. 255 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. Go into executive session to receive legal advice from the city attorney on the following topics: 1) The impact of election results on the Homer Electric Association (HEA)purchase agreement; 2) Potential Alaska public Offices Commission (APOC) claims of the City against Chugach Electric Association (CEA); and, 3) City-CEA wholesale power contract termination provisions. 15.ADJOURNMENT 3 t PROCLAMATION WHEREAS, since 2011, the Seward Historic Preservation Award has been bestowed annually to recognize an individual or organization whose efforts and contributions help preserve the tangible aspects of Seward's history and heritage;and WHEREAS, on May 11, 2023, the Seward Historic Preservation Commission voted unanimously to award the 2023 Historic Preservation Award to Tiffany and Al Siller; and WHEREAS, Tiffany Siller has researched records at the Seward Community Library, the City of Seward, the University of Alaska, and the Seward United Methodist Church for death certificates and family histories for all the people interred at the Woodlawn Cemetery and the Jesse Lee Home Cemetery; and WHEREAS, Tiffany, along with her family, compiled two books of factual details containing family histories and causes of death, and donated them to the Seward Museum; histories of the Jesse Lee Home Cemetery were donated to the Seward Historical Society and the Qutekcak Tribal Organization; and WHEREAS, Al Siller constructed handmade wooden crosses and installed them at the Woodlawn Cemetery; and WHEREAS, Al marked each cross with the name of the decedent, the date of birth, and the date of death; in addition, Al built and installed small fences around some of the graves; and WHEREAS, Tiffany credits her parents,John (dec.) and Marie Gage, with inspiring her to get involved with this research when she was only 15 years old; and WHEREAS, Tiffany has kept on the family tradition of honoring those who passed by including her husband and daughter, Isavel. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby recognize this demonstration of selfless dedication and commitment to preserving Seward's history and do hereby bestow the 2023 Historic Preservation Award upon Tiffany &M Siller and thank them both for volunteering their time, expertise, and resources to honor those Seward residents who have passed away. Dated.this 22-1 day of May,2023 THE CITY OF SEWARD,ALASKA Sue McClure,Mayor PROCLAMATION WHEREAS, historic preservation is an effective tool for managing growth and sustainable development, revitalizing neighborhoods, fostering local pride, and maintaining community character while enhancing livability; and WHEREAS, historic preservation is relevant for communities across the nation, both urban and rural, and for Americans of all ages, all walks of life, and all ethnic backgrounds; and WHEREAS, it is important to celebrate the role of history in our lives and the contributions made by dedicated individuals to preserve the tangible aspects of the heritage that has shaped us; and WHEREAS, "People Saving Places" is the theme for Preservation Month for May, 2023 and is sponsored by the National Trust for Historic Preservation; and NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby proclaim May, 2023 as: National Historic Preservation Month and do call upon our community to join their fellow citizens across the United States in recognizing and participating in this special observance. Dated this 22°d day of May, 2023 THE CITY OF SEWARD,ALASKA R V,q 0 Sue McClure, Mayor APO 1 5 PROCLAMATION WHEREAS, the uprising at the Stonewall Inn in June, 1969, sparked a liberation movement a call to action that continues to inspire us to live up to our Nation's promise of equality, liberty, and justice for all; and WHEREAS, Pride is a time to recall the trials the Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ+) community has endured, and to rejoice in the triumphs of trailblazing individuals who have bravely fought and continue to fight for full equality; and WHEREAS, Pride is both a jubilant communal celebration of visibility, as well as a personal celebration of self-worth and dignity; and WHEREAS, we recognize the valuable contributions of LGBTQ+ individuals, and reaffirm our commitment to standing in solidarity with LGBTQ+ individuals in their ongoing struggle against discrimination and injustice; and WHEREAS, for all of the progress made since Stonewall, there are many states in which LGBTQ+ individuals still lack protections for fundamental rights and dignity in hospitals, schools, public accommodations, and other spaces; and WHEREAS, LGBTQ+ individuals especially youth who defy sex or gender norms face bullying and harassment in educational settings, and are at a disproportionate risk of self-harm and death by suicide; and WHEREAS, we recognize the resilience and determination of the many individuals who are fighting to live freely and authentically, and in doing so, they are opening hearts and minds, and laying the foundation for a more just and equitable future; and WHEREAS, we see you, we support you, and we are inspired by your courage to accept nothing less than full equality; we affirm our obligation to uphold the dignity of all people, and dedicate ourselves to protecting the most vulnerable among us; and WHEREAS, the Seward Pride Alliance was formed by a group of Seward residents, with a mission to provide Seward with inclusive resources, education, and outreach to foster a strong, engaged community of LGBTQ+ individuals and allies; and WHEREAS, in 2019, SPA held its first Pride weekend and throughout the 2023 Seward Pride Weekend, the Seward Pride Alliance will be hosting a variety of fain and friendly events where everyone is welcome. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby proclaim June 8-11, 2023 as SEWARD PRIDE WEEKEND and call upon the people of Seward to recognize the achievements of the LGBTQ+ community and celebrate the great diversity of our citizens. Dated this 22na day of May, 2023 THE CITY OF SEWARD,ALASKA SEWARD PRIDE ALLIANCE Sue McClure, Mayor 6 S SEWARD P R I D Erb ALLIANCE 2023 1000� a 8th Drag Bingo (21+) Thursday, June 8 7:00 p.m. Seward Alehouse 9th Pride Blessing (All Ages) Friday, June 9 3:30 p.m. Wellington Park Pastor Jim Doepken Pride Parade (All Ages) Friday, June 9 4:00 p.m. Start& End at Wellington Pavilion "Hot Seward Nights" Drag Show (21+) Friday, June 9 8:00 P.M. Yukon Bar loth Drag Story Hour (All Ages) Saturday, June 10 11:00 a.m. Seward Community Library Exit Glacier Hike & Pride Paddle (All Ages) Saturday, June 10 Time TBD Hike: Exit Glacier National Park Paddle: Kayak Adventures Worldwide Rainbows Over Resurrection Bay Cruise with Kenai Fjords Tours Saturday, June 10 6:00 p.m. Kenai Fjords Tours Dance Party & Lip Sync Battle (21+) Saturday, June 10 8:00 P.M. Seward Alehouse Drageoke Karaoke with Mad Matty (21+) Saturday, June 10 8:00 P.M. Yukon Bar h Pride Barbecue (All Ages) 11 Sunday, June 11 12:00 p.m. First Lake City of Seward HAP Acting City Manager's Report May 22, 2023 ia Mayor McClure and Council Members, I have taken over as Acting City Manager there are many things happening within the city. The city staff has been very helpful this past week. I have had many meetings with Janette prior to her departure to get me up to speed. I want to thank Janette for her commitment to the city; she said I could call her any time if I have questions, I am sure, I will. I have many more meetings coming up on future legislation for council to decide on. If you have any questions, please feel free to reach out to me, you have my number. US Navy Attached is information regarding the Northern Edge Exercises and the Marine Species Monitoring Program in the Gulf of Alaska. Purchase Orders As required by the Seward Municipal Code 6.05.010, the following purchase orders between $5,000 and $30,000 have been approved by the City Manager since the last council meeting. Department Order Date Vendor Description Amount �AR(ING 5i11i2523 VEIR CORP Parking lot striping North Lot-$3,7005outh Lot-$3,700 Center Lot-$2782.50 South Boat Launch Lot-$1,565.Seeking Sole Source 11.34-150 Justification-No reponses to RFP,all other attempts for hid quotes went unanswered.Request 10%contingency for incidentals. Thank you, Norm Regis a 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 0 Accounting Tech Accounts Payable 1 1 TOTAL: 9 5 Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 3 Public Works Technician 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 0 Field Engineer 1 1 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 1 9 # of Department Job Title Positions Filled TOTAL: 7 7 Harbor Harbor Master 1 1 Deputy Harbor Master 1 1 Office Manager 1 1 Executive Assistant 2 2 Harbor Worker II 6 6 Harbor Worker III 1 1 Seasonal - Summer Laborer Part-Time 1 1 Seasonal - Summer Laborer Full-Time 1 1 TOTAL: 14 14 IT Director 1 1 Senior IT Tech 1 1 IT Technician 1 1 TOTAL: 3 3 Library Director 1 1 Assitant Library Director 1 1 Library Technician 1 1 Curator 1 1 Library Aide 1 1 Seasonal - Aides 2 1 TOTAL: 7 6 Police Chief 1 1 Deputy Chief 1 1 Sergeant 1 1 Patrol Officer 7 5 Patrol Officer not funded 1 0 Executive Assistant 1 1 Corrections Sergeant 1 1 Corrections Officer 4 3 Corrections Officer not funded 1 0 Dispatch Supervisor 1 1 Dispatcher 5 5 Animal Control Officer 1 1 Animal Control Officer Assistant 1 1 DMV Clerk 1 1 TOTAL: 27 22 Parks & Recreation Director 1 1 Deputy Director 1 1 Executive Assistant 1 1 Campground Coordinator 1 1 Program Coordinator 1 1 Recreational Assistant 1 1 Maintenance Technician 1 1 Seasonal - Summer 15 6 Seasonal - Winter 2 0 TOTAL: 24 13 10 # 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: 101 11 Assistant City Manager Stephen Sowell ➢ Public Works Shop Project: Work continues on progressing to 35% design. Our goal is to be at that point by the end of June. Doug and I met with R&M Engineering and the rest of the architectural and design team on May 9t" and continue to refine the facility layout and site design. ➢ Public Safety Needs Assessment: The project kickoff meeting was held at the Fire Station on May 9t". Chief Crites, Chief Nickell, Deputy Chief Schaefermeyer, and I met with the design and architectural teams. May 9 through 12 included facility visits, interviews with staff, and investigation of facility requirements. The goal is to have a presentation to the City Council and public in August with the preliminary requirements and an engineers estimate of the construction cost. If we can complete this phase by September, the project could then be added to our 2024 Legislative Priorities list. The Needs Assessment Project is scheduled to be completed by December 2023. ➢ The Board and Commission Attendance Tracker is included in this report. ➢ Heat Loop Project: The Project is in the running for a Phase 1 grant from the Department of Energy. The Heat Loop Project team met with the Department of Energy on May 11t" to continue "negotiations". This phase could continue for several months. If approved, we will receive the $315,000 necessary to complete the remaining design and engineering work. ➢ As a follow up to the Special Meeting regarding the Developer Reimbursement Program, I am working on an Ordinance to Title 5 which will meet the needs that Council discussed. 12 Board/Commission Meeting Date Port and Commerce 1/4/2023 2/1/2023 2/15/2023 3/8/2023 4/5/2023 YTD Absences Vacant Paquette Yes Yes Yes Yes Yes 0 Hughes Yes Yes Yes Yes Yes 0 Jaffa Yes Yes Yes No Yes 1 Smith Yes Yes Yes Yes Yes 0 Woelkers Yes No No Yes Yes 2 Atwood I Yes IYes lNo IYes lYes I I 1 1 Board/Commission Meeting Date Planning and Zoning 1/10/2023 2/7/2023 2/21/2023 3/7/2023 3/14/2023 3/20/2023 4/6/2023 4/19/2023 5/9/2023 YTD Absences Sullivan Yes Yes Yes Yes Yes Yes Yes Yes Yes 0 Verhey No No No No No No Yes Yes Yes 6 Monaco Yes Yes No Yes Yes Yes Yes Yes Yes 1 Staggs Yes Yes No No No No Yes Yes No 4 Charbonneau Yes Yes Yes No Yes Yes Yes Yes Yes 1 Hornseth Yes Yes No No No Yes Yes Yes Yes 3 Ulman lNo lYes IYes lNo lNo lNo IYes lYes IYes 1 4 Board/Commission Meeting Date Historic Preservation 1/12/2023 YTD Absences Lebbrecht Yes 0 Ward Yes 0 Walker Yes 0 Benoit Yes 0 LeMaster Yes 0 Vacant Vacant 13 ALASKA NAVY TRAINING IN THE GULF OF ALASKA F NORTHERN EDGE EXERCISES h www.GOAEIS.com The Gulf of Alaska provides invaluable training space needed 2011 Gulf of Alaska (GOA) Navy Training Activities to prepare United States(U.S.)service members to protect and Final Environmental Impact Statement/Overseas defend the United States and its allies.The military's largestjoint Environmental Impact Statement(EIS/OEIS) training exercise in Alaska is Northern Edge. Maritime training 2016 GOA Navy Training Activities Final activities conducted during Northern Edge occur in the Gulf of Supplemental EIS/OEIS Alaska within a designated Temporary Maritime Activities Area (TMAA),which is located south of Prince William Sound 2022 GOA Navy Training Activities Final and eastof Kodiak Island,and the Western Maneuver Area(WMA), Supplemental EIS/OEIS which is located south of Kodiak Island(Figure 1,page 4). The Navy continues to update impact analyses with new The U.S. Navy analyzed the potential environmental impacts of information and analytical methods. New information includes training activities in the Gulf of Alaska,which are documented in updated acoustic effects models, updated marine mammal the following impact analyses.These documents are available at density data and marine species hearing criteria, and other www.GOAEIS.com. emergent best available science. Training in Alaska is critical "vim » uiN�� i)i )iiiiiixilVA L* a. for the readiness1 military personnel 1 protect 1 defend the UnitedStates and its allies. MISSION OF THE U.S. NAVY I LITARY TRAI N I NG I", ND THE Tomaintain, train, andequip OF�ALASKA ,J' combat-ready military • Since 1975, the U.S. Indo-Pacific Command has met defense capable of _ wars, deterring objectives by training military forces for potential crises in the aggression, • maintaining Indo-Asia-Pacific region. Mission-critical military training activities freedom of in Alaska occur within the Joint Pacific Alaska Range Complex,which NAVY TRAINING REQUIREMENT includes the TMAA and WMA in the Gulf of Alaska and existing IN THE GULF OF ALASKA U.S.Air Force and U.S.Army inland air and land training areas. To prepare • • These training areas provide realistic environments for military deployment by training forces and interagency partners to practice both basic and complex environments.in realistic training activities.Training in the Gulf of Alaska allows for varying degrees of scenario complexity,which enhances the quality of training and better prepares service members to respond to world events. Joint training exercises bring together personnel from different branches of the military to plan and conduct activities at sea, in 4 the air,and on land.These exercises provide opportunities for forces to practice tactics,techniques,and procedures to improve coordination and fulfill military readiness requirements. 15 Sailors must be ready to respond to any situation that may arise, ranging from large-scale conflict, to maritime security operations,to humanitarian assistance and disaster relief. Their success is contingent upon realistic training that effectively prepares them to respond to an emergency situation or an act of aggression at a moment's notice. The Navy must maintain a rigorous, comprehensive training regimen to ensure ships are ready to deploy on schedule and to prepare Sailors to carry out their duties as required.Sailors must train with their equipment and systems before deployment. Skills needed to achieve military readiness are perishable without NORTHERN EDGE JOINT TRAINING EXERCISES constant practice.Therefore,training must be diverse and as realistic as The military's largest joint training exercise in Alaska is Northern Edge. possible to prepare Sailors to complete Exercises typically occur every other year in odd years, e.g., 2023, 2025.The their mission and ensure their success Navy has participated in Northern Edge since the 1990s.These exercises are and survival.While simulators provide designed to replicate challenging scenarios and environmental conditions early skill repetition and enhance teamwork, there is no substitute for found around the world, and prepare service members to respond to crises, live training in a realistic environment. such as natural disasters, global conflicts, and threats to homeland security. Alaska provides ideal conditions for Northern Edge exercises typically last up to 21 days and occur between realistic training scenarios in a large, April and October when weather conditions best support training objectives, diverse environment,which increases which enhances readiness and reduces safety risk.Training activities are not overall fleet safety and promotes future conducted in extreme weather conditions due to safety concerns. Given the mission success. significant investment in resources associated with bringing military forces to Alaska,the exercises are scheduled for periods with the greatest chance for suitable weather.The specific dates of each biennial exercise are determined based on the availability of forces, deployment schedules, maintenance periods, and other exercises planned within the Pacific. Approximately 15,000 personnel from all U.S. military services and interagency partners participate in these exercises. The size of the exercise varies, but requires vast,Alaska-scale distances,similar to the conditions participants may ru -� face in operational environments around the world.Training is comprehensive and as realistic as possible. Maritime activities may include the following types of training: » Aircraft,ship,and » Aerial surveillance training submarine operations » Submarine detection and location » Weapons training and » Vessel searches and qualifications interdiction training Environmental protection is an integral part of Northern Edge and Navy activities are conducted with an extensive set of mitigation measures(Mitigation Measures While Training at Sea, page 9) developed and authorized by permit from the National Marine Fisheries Service. 16 During Northern Edge exercises,the Navy establishes maritime training areas in the Gulf of Alaska called the Temporary Maritime Activities Area (TMAA) and Western Maneuver Area (WMA) (Figure 1).The TMAA(approximately 42,146 square nautical miles) is the ideal location for training because of its proximity to a large contingent of Air Force and Army land training areas and airspace, as well as personnel, resources, equipment, and infrastructure in Alaska.The WMA (approximately 185,806 square nautical miles) is needed for the Navy to practice the maneuvering of vessels and aircraft during training exercises as they would need to maneuver in real-world situations. The activities conducted in the WMA are limited to vessel movements and aircraft training,and several events associated with these movements.The Navy does not use sonar or explosives in the WMA.The vast majority of training activities occur only in the TMAA. The Gulf of Alaska TMAA and WMA have complex bathymetric and oceanographic conditions, including a continental shelf, submarine canyons, numerous seamounts, and fresh water infusions, and provide a cold-water training environment even in summer.The Gulf of Alaska TMAA and WMA provide the vast space needed to maximize the realism of the exercises. Training activities are conducted far enough offshore of coastal areas to reduce impacts on Alaska Native subsistence activities, commercial fishing, and recreational fishing.These activities avoid many sensitive resources of the coastal regions with no overlap of salmon and herring management areas, partial overlap with groundfish and halibut management areas, and minimal overlap with shellfish management areas (Figures 2-3, page 5). ro os'r, Figure 1.GULF OF ALASKA TEMPORARY A I as A, a MARITIME ACTIVITIES AREA AND WESTERN MANEUVER AREA •` A1a�.ls�Range The Gulf of Alaska Temporary Maritime _ _ C.oI VWX Activities Area is established only during (J ) exercises and provides an ideal location _ for training. The Western Maneuver ase _ �oirtt Area provides sufficient space for s EElmendord- realistic maneuvering of vessels and !nahraga Riohards*n � daircraft during training exer_clms_MeTMsM. a _ .� tMafplBre data, Cordovai G{jA r lYli.&krlb Sucmn?g b y Yakute _ r COW 1fivrJoig Ntw 'x R vY SakFCn *� YIWJLr J 4 n IL4[dThe Navy has analyzed r s US.�a S[Guard E34e ll(odiac potential ,r TMAA P y .• r of training in the Gulf . ecowBONY .�l 4 J.i ++ ` 1Alaskaon fishes 1fish habitat. VVMA The analysesindicate that training would potentially fminimal impacts 2 1 would 1 - 12-Na.' nI?Ak unA Gulf tl Am" skey A,reb �iirrrr ddesl'da14AmMmrwwwAr @FMA] 1 overall YWI*r QapM "nd%fYy7d'Afy MAfbl"A %*ft Alm ITW,�.4] 4 '%IGO I'%3 qm KWUfy OWaWm 4"Ih OA) Oopwwww 0 GgMo"Insuft ao ry US ArMyfAa Fuca N 0 40 WNM health 1 1 Real ecArea ':-i- J04Mease ...,, n .. Y/9mw Vea ® V 5 Gwat Guerq Baca I any fish population. 17 �RARY MARITIME ACTIVITIES AREA AND WESTERN MANEUVER AREA Figure 2.ALASKA +• _ SALMON AND HERRING FISHERY MANAGEMENTAREAS ' .v�=.•v: INTHEGULFOFALASKA Navy training activities �.. • conducted in the �Perraq � 'Y' Gulf of Alaska do not TMAA overlap with salmon and herringfishery management areas. 4e 91WMA "" ... r,o��rra:;ter,ry Fie.rrhi Nc;==a-an+4mas yagi.kr.urn.v�emer4 Arew ° . Pif kk rd :,op"j.klgown a.aa 1, IOgg" P-n,, § -WdA i SUAY'4''tl =E.ya.aR+Y :^- vAr4, Qw1y Ceaoiofr yChdoi W 0 so IDD ISO-km r 1 Fn WA8M So nd 0 +0 0 MUM Figure 3.ALASKA GROUNDFISH,HALIBUT, i AND SHELLFISH " r~1 HARVEST DATA IN THE GULF OF ALASKA Navy training activities conducted Bering ea in the Gulf of Alaska Alaska • ;r partially overlap r with groundfish and `a {` halibut management :.:. . areas and minimally overlap with shellfish management areas. 4U hi A 'Mw Dew lX�tdr r,. mn A 20Q,201) Cncrn•a'i16hrlfmd sM*Vdn Hnr t w`+Slop•WAQabm Ar 121117.W21) a..A of kb.kr Sh*Ate" 4n 7vA Ik,ckra.a vwaewn u.,"uwr 0 50 IG} 110Im 1IPNrwd.S uWAAL,aca5yn.s.w.. F; 6 a4 ♦prb� ,s..W ti One of the Navy's top priorities is to defend against Torpedoes, in-water mines, an1 enemy submarine activity.To detect potential enemy quiet1frompotential submarines,the Navy uses both passive and active enemies are 1global SOund NAvigation and Ranging, known as sonar.The difference between these types of sonar is that passive commerce1national sonar does not emit a signal whereas active sonar Active sonar 1 emits a pulse sound for purposes of detecting an echo. method 1 detecting these Sonar uses sound energy waves to detect and locate threats. submerged objects,such as submarines and in-water mines. Sonar proficiency is complex and requires regular, hands-on training in realistic and diverse conditions.The Navy uses simulators and other advanced technologies for some training; however, simulation cannot completely replace training in a live environment. Lack of realistic trainingjeopardizes the lives of Navy personnel in actual combat situations. Active sonar is the most effective method of detecting underwater threats,such as torpedoes, in-water mines, and quiet submarines from potential enemies. TRAINING WITH WEAPON SYSTEMS Sailors must train in a variety of high-stress environments, including scenarios that involve the use of and exposure to explosive ordnance,to be ready to respond to emergencies and national security threats. a • - Sailors train using non-explosive munitions as often as t. N4'41Y possible. However, non explosive practice munitions cannot completely replace training in a live environment. Limited training with explosives occurs only in established operating areas.The Navy ensures public + safety by establishing safety buffers around activity sites when in use.The Navy, in coordination with the U.S. Coast Guard and Federal Aviation Administration, issues notices to mariners and pilots to ensure public safety. Although simulation may be used substitutefor some training activities, there is no qualifications.to achieve 19 The following is a summary Marine Mammals of potential direct impacts on >> Training may affect individual animals of certain marine species and the marine species, but is not expected to decrease the overall environment from training, as health or survival of any population. wellas cumulative effects- For >> Almost all (approximately 99.61%) predicted effects more detailed information, from acoustic stressors are behavioral responses. pleaserefer to the EISs/OEISs, >> A very small number of physiological effects(hearing available atwww.GOAE1S.com- loss) may occur, but mitigation measures will reduce Fishes and Marine Invertebrates potential impacts. >> Most fish species are not able to hear naval >> No mortalities or non-auditory injury are predicted- sonar(Figure 4)- » Impacts on marine mammals and important habitat Training is not expected to decrease overall health are reduced due to the Continental Shelf and Slope or survival of any fish population. Mitigation Area. >> Training with in-air explosives may affect individual Cumulative Impacts fish near the surface. >> Training activities may have cumulative impacts on Military expended materials will not have significant marine mammal species when considered together with effects on fishes or fish habitat. impacts of past, present, and other future actions- • Relatively small amounts of materials occur over >> Impacts on other environmental resources are negligible a large area. or not cumulatively significant. • Materials are nontoxic and will not bioaccumulate in species or enter into the ecosystem. >> Training may have minimal, localized,and temporary Minimizing impacts on the marine impacts on marine invertebrates. » Training will not interfere with Alaska Native subsistence environment is important to the Navy. activities, commercial fishing, and recreational fishing. I mpacts on fishes, including endangered or threatened The Navy continues to implement salmonids,and marine invertebrates are reduced due to mitigation and monitoring measures the Continental Shelf and Slope Mitigation Area(page 10)- to minimize effects on marine species. Figure 4.FISH HEARING AND NAVAL SONAR Blue lines represent the estimated minimum Sources:Casper&Mann,2006: and maximum range of frequency detection Chapman&Hawkins,1973: Her"rW(MO-5JWF12] Chapman &Sand. 1974: (thin portions)and range of best sensitivity (thick portions)for each hearing group. ' Hawkins&Johnstone.1978: Mann et al..2005:Popper,2008: Thick colored lines(purple,green,and orange) + �,5 a.$w rp a�w­'.;J�Oddcr not hI.VVed n H orurp Popper et a L,2007:Tavolga& represent example hearing data for specific Wodinsky,1963. species and black lines represent the ranges = sarmomes(1°—s�aHxM Acronyms: of each sonar system. Cod(20-500 HFw >> Hz=hertz >> MF1=3,500 Hz �, Rackfsh(1q..."�LQHxM Most fish species u not able1 hear naval rhow'?Sw m sonar. 1ustic studies Halibut(20-270 H¢f Hoqh-FrequmcV Sonar on herring showy Z MFi{AWSQS-53,hull ffb"W4ed wwr] sonar poses 1 `.i[I.c.i`VUCnL1'Sonar 1risk1 individuals or populations. FfIequenry(Hr) 20 NAVY MARINE SPECIES RESEARCH AND MONITORING EFFORTS Between 2009 and 2022,the Navy has funded The Navy continues to be a world leader in marine species approximately million 'r marine species research and monitoring, having funded marine research research, surveys, and monitoringefforts programs,surveys, and data collection efforts since 1992, within the offshore waters of the Gulf of Alaska. and since 2009 in the Gulf of Alaska.The Navy partners with state and federal agencies, universities, research institutions, federal laboratories,and private researchers around the world MARINE SPECIES POPULATION MONITORING to better understand marine species occurrence, distribution, The Navy works closely with the National Marine Fisheries movement, and behavior. This scientific research helps Service (NMFS) as part of its Integrated Comprehensive environmental regulators,scientists, and the Navy to: Monitoring Program to coordinate monitoring efforts across >> Better understand the abundance,distribution,foraging, all ocean regions where training occurs.The Navy provides reproduction, physiology, hearing,sound production, reports on its training activities in the Gulf of Alaska, including behavior, and ecology of marine species in order to findings from passive acoustic monitoring, to NMFS.These assess effects from naval activities. reports are available to the public. Develop and improve models to better predict potential effects of underwater sound and explosives on marine species. Develop effective protective measures. The Navy is dedicated 1 protecting coastalmarine and 1 of the Gulf of Alaska. Since 2011,the Navy has monitored and observed marine mammals during Navy training activities in the Gulf of Alaska. Some of these efforts include: v Surveying for cetacean abundance and distribution using ` line transect surveys. Satellite tagging of marine mammals and fishes. Maintaining,collecting,and analyzing data from multiple =" r • passive acoustic monitoringsites and mobile gliders. Data ,, are used for characterizing ambient sound levels and , � �• ,� detectingthe presence of vocalizing marine species. MONITORING EFFORTS IN THE GULF OF ALASKA I Partnering with Oregon State University, The Navy determined the presence of Researchers from NMFS and other the Navy funded a multi-year(2017-2019) marine mammal and anthropogenic organizations conducted two large vessel humpback whale study in the Pacific Ocean sounds through passive acoustic monitoring Gulf of Alaska Line-transect Surveys(GOALS) using combination of satellite-tracking via bottom-mounted High-Frequency in 2009 and 2013 with Navy funding. technology (tags), genetic sampling, Acoustic Recording Packages in the Researchers used a combination of and photo-identification analysis. Gulf of Alaska, which spanned the photo-identification, passive acoustics, Since 2020,the Navy has partnered continental shelf,slope,and offshore and satellite tagging to determine with University of Alaska-Fairbanks to seamounts.The Navy also investigated distribution, movements,and densities deploy Pop-up Satellite Archival Tags spatial distribution and temporal of marine mammals.The Pacific Marine and with NMFS to deploy acoustic occurrence of baleen and toothed Assessment Program for Protected telemetry tags on Chinook salmon in whales through a passive acoustic glider Species conducted the Gulf of Alaska the Gulf of Alaska. survey.The survey focused on the shelf Cetacean Survey in summer 2021,also break area between Middleton Island with Navy funding. and Kodiak Island. 21 I Scientific research in the Gulf of Alaska,and in other areas where MITIGATION MEASURES WHILE TRAINING AT SEA the Navy trains,indicates Navy training activities are unlikely to It is important to the Navy to avoid or minimize impacts on have long-term consequences on marine mammal populations. the marine environment from at-sea training activities.The Although some species may display short-term behavioral Navy follows strict guidelines and employs measures that responses during Navy training activities,observations indicate reduce potential effects on marine species while training.The Navy activity is compatible with the long-term survival of marine measures listed in this brochure include some, but not all,of mammals.These observations include: the Navy's existing at-sea mitigation measures. Increased numbers of animals for some marine mammal Protective Measures Assessment Protocol species inhabitingthe Gulf of Alaska wherethere is sufficient information available. The Navy uses the Protective Measures Assessment >> Continued presence of species and long-term residence by Protocol (PMAP)software tool prior to conducting training individual animals,including species thoughtto be sensitive activities. PMAP provides a map that displays the location of to sound,in areas highly used by the Navy. the activity relative to any protected or sensitive marine resources Recorded use of training areas for marine mammal in the vicinity. PMAP provides a report identifying the specific breeding,birthing,and nursing. measures a naval unit must implement to protect marine resources Lack of observable negative effects on marine mammal forthe actual date,location,and type of activityto ensure compliance stocks or populations with more than 16 years of with mitigation requirements, permits,and authorizations. comprehensive monitoring and data collection. Observe the Area Prior to Activities Visit www.navymarinespeciesmonitoring.us for more Marine mammals and sea turtles can be detected visually information on the Navy's Marine Species Monitoring Program. while at the surface,and marine mammals can be detected ENVIRONMENTAL PROTECTION AT SEA acoustically while vocalizing underwater.Therefore, before certain activities are conducted,the area is visually scanned The Navy is committed to protecting the environment and and,when possible,acoustically monitored. actively strives to minimize the potential impacts from training Post Qualified Lookouts at sea. The Navy implements and improves processes to reduce a vessel's environmental footprint by: Navy personnel must successfully complete the Marine Consolidating plastic waste into melted disks and Species Awareness Training approved by NMFS to qualify as Lookouts, in accordance with the Navy's Lookout Training disposing of them when ships return to port. Handbook. Navy Lookouts visually observe for the presence of Conserving energy by installing energy efficient marine species within mitigation zones. technologies,whenever possible. Managing ballast water to prevent the introduction Visit www.youtube.com/watch?v=KKo3rlyVBBA for of non-native species. more information. Utilizing shore power when ships are in port to Establish Mitigation Zones for Marine Species minimize air emissions. Managing, reusing, and recycling hazardous materials. A mitigation zone is designed to reduce potential impacts on marine species from certain training activities.The size of a mitigation zone is unique for each specific activity. Navy personnel visually observe each zone. If signs are detected ` within the mitigation zone indicating marine mammal, sea turtle, or seabird activity, applicable training activities cease until the animal exits the zone or other activity recommencement criteria are met. Science Center,NOAA Fisheries Service -.; Photo Credit Merrill Gosho,Alaska Fisheries - i 22 Navigate Safely Navy vessel operators are alert and watch for objects in their path at all times while in transit. Operators follow Coast Guard navigation rules, operate at a speed consistent with mission and safety, and take proper action if there is a risk of collision. Mitigation for vessel movements includes observing for and maneuvering to maintain distance from marine mammals and sea turtles while underway. Implement Geographic and Seasonal Mitigation Measures The Navy restricts some types of training activities in specific geographic locations and increases mitigation efforts during certain times of the year to further avoid impacts on marine species. Examples of geographic and seasonal mitigation measures (Figure 5) include: Continental Shelf and Slope Mitigation Area In direct response to agency, tribal, and public comments received on environmental impact analyses, the Navy implements a new mitigation area within the continental shelf and slope area of the TMAA(approximately 14,600 square nautical miles).The Navy expanded its mitigation measures for explosives detonated at or near the surface and prohibits the use of explosives during training(up to 10,000 feet altitude) in areas of less than 4,000 meter depth to protect marine species and biologically important habitat. Implementation of the mitigation area reduces impacts on marine mammals, fishes, and marine birds.Additionally,the WMA was specifically configured to avoid the continental shelf and slope area, minimizing potential overlap with important habitat areas, migration routes, and fishing grounds. North Pacific Right Whale 17!'ITPlV I'i=�'a'V4 1YY'Q9'lV iL7'Q9'lY' Mitigation Area The Navy implements a mitigation Ald.5,ku U- da d �r area for exercises taking place duringthe North Pacific right whales' feeding time between June and September.The Navy does not use surface ship hull-mounted mid-frequency sonar or explosives during training �Cordava events in the mitigation area within 61.,.iwb cax ulf4kllR� those feeding months. flIIEYIM • TMAA The Continental Shelf and Slope Mitigation Area 'f}YIIQ.. l WMAreduces impacts on marine mammals, fishes, marine birds, and important habitat. ----- ----------------------------------------------- Figure 5.MITIGATION AREAS WITHIN THE �+mpMwnarnn ',WbW 9np^n 17 Te*isi GULF OF ALASKA TEMPORARY MARITIME tivr,ak7gJ,WIIA1L ° ACTIVITIES AREA iLxixles U'Fes6c,+i Msx-r.wAee[�v1APa �y¢fili+r ,ai she I8�d dnJT �'i�+aalbl'e.d+cvenKsr�ael '� ° 49 11.1 The Navy implements measures,such as r�liganoa ap "` "°' geographic and seasonal mitigation areas, to avoid impacts on marine mammals and fishery resources. 23 Figure 6. DESIGNATED CRITICAL HABITATS WITHIN THE GULF OF $ ALASKA TEMPORARY MARITIME ACTIVITIES AREA A The Navy considered important ` designated critical habitat areas within the Temporary Maritime Activities Area during development of mitigation areas. Ancharacam e P s LfGargP�Y�i ..°dMn,hdKvf r I The boundary of the Of } , la Western Maneuver ° °' rneAa Area was configured to avoid overlap ,- and potential impacts on critical WMA habitats, biologically important areas, marine mammal Habitots Considered Miter aeplh.m meteus) migration routes, Bll ll fi Slit ler Sea Lrxi Crtlica HabilaL GLMCo k3spa K4CA)ShAf,rea Plump i6k'Ih IG Iwrilr aC Nabilat 1�t IN'dJtlB9 V*ahPln hba�'iewar D `A 7dd ii0 km 1-1 Area QY"and iFfwapy r I and primary dlHd BelWa'h>7ale Cnhc-81 HaGtal Ik'IesYrnxf,MArAnea(fh1FN'' N D 44 $phlM -M.....w. Y.r.•re)i..,..A— fishing grounds. NMN4o Sea CMei Grit cal rlaalat Nanh Pacific Flighl VgMle Critical-in xw a Temporary Maritime Activities Area The Gulf of Alaska TMAA boundaries are located outside of the 1993 NMFS-designated Steller sea s011. —111 lion critical habitat. • The Navy issues prevent awareness messages to alert vessels and aircraft participating in training activities within the TMAA to the possible presence of concentrations of large whales on the continental , � Ay shelf and slope. µ Western Maneuver Area e The Gulf of Alaska WMA boundaries were drawn to avoid the designated critical habitats shown in Figure 6. 24 The Navy is committed to fulfilling its mission in an _ -T environmentally responsible manner, and ensuring the long-term viability and capability of training ranges, while at the same time protecting human health and the environment. The U.S. Pacific Fleet is committed to working with potentially affected stakeholders, coastal communities, and Alaska Native tribes to improve communication 5 and build strong relationships.The Navy has continued transparent community engagement throughout the environmental and exercise planning processes. - ir For several years,the Navy has engaged in extensive outreach activities in Alaska and Washington state.Ongoing outreach efforts promote meaningful and sustained communication, foster a greater understanding of the Navy mission and training requirements, provide timely updates about Northern Edge exercises,and facilitate open conversations so the Navy can receive feedback and listen to public concerns. Navy outreach teams have: Participated in in-person and virtual environmental conventions and expositions, including: Alaska Forum on the Environment ti- - - , Alaska Federation of Natives • Alaska Marine Science Symposium • ComFish Alaska North Pacific Fisheries Management Council meetings T- Pacific Marine Expo Participated in in-person and virtual public meetings to . United States support environmental impact analyses. a nmanr�pr, ,pc;fac F1e Engaged with chambers of commerce, city councils,and • Enwirrnmenta�Pro coastal communities of various cities. � 4 .-.._m.. Staffed outreach booths. -_ Hosted port visits and ship tours. 4 - i GULF As ISTEWAR ^!�' f� Al Bottom middle frontcover,North Pacific right whales photo credit:Adam U,NMFS MML permit#20465 Bottom left front cover,humpback whale fluke , ,p photo credit:Sally Mizroch,Alaska Fisheries Science Center,NOAA Fisheries Service 25 February G U.S. NAVY MARINE . SPECIES MONITORING IN THE GULF OF 1 1 1 MARINE SPECIES MONITORING PROGRAM MARINE SPECIES MONITORING - GULF OF ALASKA TIMELINE MARINE MAMMAL VISUAL AND ACOUSTIC SURVEYS MARINE SPECIES TAGGING The Navy is MARINE SPECIES MONITORING PROGRAM dedicated to Navy Marine Species Research and Monitoring Efforts protecting the The U.S. Navy continues to be a world leader in marine species research and monitoring, having funded marine marine and coastal research programs,surveys,and data collection efforts since 1992,and since 2009 in the Gulf of Alaska.The environments of the Navy partners with state and federal agencies, universities, research institutions,federal laboratories,and Gulf of Alaska. private researchers around the world to better understand marine species occurrence,distribution, movement, and behavior.This scientific research helps environmental regulators,scientists,and the Navy to: ► Better understand the abundance,distribution, ► Develop and improve models to better predict � foraging, reproduction, physiology, hearing, potential effects of underwater sound and sound production, behavior,and ecology of explosives on marine species. yK marine species in order to assess effects from naval activities. Do- Develop effective protective measures. Andrew R Hendry Integrated Comprehensive Monitoring Program As part of its Integrated Comprehensive Monitoring Program, the Navy works closely with the National Marine Fisheries Service (NMFS) to coordinate monitoring efforts across all ocean regions where the Navy trains and tests. The Navy provides annual reports of training and testing activities and monitoring studies to NMFS. These reports are also available to the public (link below). The Monitoring Program Coordinates with Other Navy Research Programs The monitoring program works closely with the Navy's research and development programs. The Office of Naval Research Marine Mammals and Biology program conducts basic Rolf Ream,Alaska Fisheries Science Center, - research,and the Living Marine NOAA Fisheries Service __.�,� ,•_,w.. Resources program conducts applied research.Technology and knowledge developed by these research - - 71 programs are transitioned for environmental compliance and used Brenda Rone,Alaska Fisheries Science Center, N Fisheries Service eries Service ... by the monitoring program. MARINE SPECIES MONITORING — GULF OF ALASKA TIMELINE Northern Edge Joint Training Exercises ► Northern Edge joint training exercises are conducted biennially (every other year)in the ._ Joint Base Elmendorf- Gulf of Alaska for approximately three weeks Anchorage.- Richardson between April and October. — _ Cold— �ape _--- Navy s a maritime training area ► forethese activities en the Gulf of Alaskak known Montague lsland — :ucklmg Iniskine Homer Yakual, as the Temporary Maritime Activities Area " t Cape Iaaleton l (TMAA; see Figure 1). The Gulf of Alaska TMAA „� ' �"' Douglas V� � � is located offshore and avoids many sensitive >t:(r�, is coastal resources. U.s.const�narl ,µ BaseKod F"otViak Do- Studies occurring within and beyond the Gulf of ,} ` Alaska TMAA help the Navy better understand species distribution in relation to Navy activities ;o to support the Navy's environmental impact +° analysis, consultations, and permitting, as shown in the below timeline. 12-Nautical Mile Limt Department of Defense Installation Water Depth(in meters) yy� US.Army/Ar Farce 0 50 100 150 km " ., 4r Joint Base - -- TemporaryMarti me Activities Area N 5 40 BONM U.S.Coast Guerd Base \� _ cooamsa sys am rvaoean�wnioas The 12-nautical-mile limit represents the limit of U.S.territorial waters. Figure 1. The Gulf of Alaska Temporary Maritime Activities Area. The Navy is dedicated to protecting the marine and coastal environments 2011 -2015 2017 -2019 of the Gulf of Alaska.The Navy has Passive acoustic monitoring in the Gulf of Alaska Passive acoustic monitoring in the Gulf of Alaska funded marine species monitoring TMAA using bottom-mounted devices(High-frequency TMAA using bottom-mounted devices(HARP) within the offshore waters of the Gulf Acoustic Recording Packages[HARP]) 2017-2019 of Alaska since 2009 (see timeline), 2015 Humpback whale tagging study across multiple with approximately$6 million Underwater glider Navy training areas invested through 2021. passive acoustic study JL All, 2009 2013 2020- Present 2021 Line-transect surveys using visual Line-transect surveys using visual Chinook salmon Line-transect surveys and passive acoustics in the Gulf of and passive acoustics in the Gulf of tagging in Alaska using visual and passive Alaska TMAA(GOALS 1) Alaska TMAA(GOALS 11) acoustics in the Gulf of Alaska TMAA(PacMAPPS) MARINE SPECIES MONITORING GULF OF MARINE MAMMAL VISUAL AND ACOUSTIC SURVEYS Gulf of Alaska Line-transect Surveys Researchers from NMFS and other organizations conducted two large Kodiak sitka vessel Gulf of Alaska Line-transect Island Surveys (GOALS) in 2009 and 2013 with Navy funding (see Figure 2). Right Whae h -- Researchers used a combination of photo-identification, passive acoustics, and satellite tagging to determine l `_✓ distribution, movements, and densities " of marine mammals. Partners:Alaska Fisheries Science ✓ Jl V' Center, Southeast Fisheries Science _ � Center, Cascadia Research Collective, ° 50 °° 2°°""°"e`e`s ' Bio-Waves, Inc. Figure 2. Visual effort and Dall's porpoise sightings from the Gulf of Alaska Line-transect Surveys (GOALS II) research cruise from June to July 2013 (white = on-effort sightings, gray = off-effort sightings) (Pone et al., 2014). ► GOALS 1 (2009) • Visual survey of 760 kilometers (km) with 96 sightings of 11 marine mammal species seen. • Towed-array passive acoustic survey covered 3,519 km and recorded acoustic _ detections of two species (sperm whale and killer whale). - .- ► GOALS 11 (2013) �* • Visual survey of over 4,SO4 km with 802 sightings of 13 marine 1� mammal species seen. Alaska Fisheries Science C--�:_, • Towed-array passive acoustic survey covered 6,304 km and recorded six NOAA Fisheries Service cetacean species. • A total of 186 passive acoustic sonobuoys were deployed, with seven cetacean species detected. • Two short-term satellite tracking tags were deployed (attached to a blue whale and a Baird's beaked whale). Navy-funded line-transect surveys (GOALS 2009 and 2013) were combined with surveys funded by NMFS and the Marine Mammal Commission (Collaborative Large Whale Survey [CLaWS 2015]), and summarized in the Navy-funded Rone et al., 2017 report,Abundance and Distribution of Cetaceans in the Gulf of Alaska. The Pacific Marine Assessment Program for Protected Species (PacMAPPS) will conduct the Gulf of Alaska Cetacean Survey in summer 2021, also with Navy funding. ;. MARINEFisheries Science Center, NOAA Fisheries Service MARINE SPECIES TAGGING Humpback Whale Tagging and Genetic Studies(2017-2019) The Navy funded a multi-year humpback whale study in the Pacific Ocean using a combination of satellite-tracking technology(tags),genetic sampling,and photo-identification analysis. Partners:Oregon State University ► The project's objective was to conduct a comprehensive characterization of humpback whale movements during breeding,migration,and feeding periods using data from animals tagged in breeding areas(Hawaii)and feeding areas(Aleutian Islands,southeast Alaska,Washington, Oregon,and California). ► Through the combined use of survey methods,the results revealed complex migratory linkages between Hawaii and the Chukchi Sea,Bering Sea,Aleutian Islands,Gulf of Alaska,southeast Alaska,northern British Columbia,and Washington;as well as linkages between southeast Alaska and Mexico;and linkages between Washington/Oregon and Central America. ► Genetic analysis of biopsy samples provided valuable information on the mixing of Distinct Population Segments in the feeding areas,which complicates unequivocal assignment of individuals to breeding stock without further information. Sally Mizroch,Alaska Fisheries Science Center, NOAA Fisheries Service Janice e . Waite, Fisheries Y I ScienceI Y III . ,.• •. Amy Kennedy,Alaska Fisheries Science Center,NOAA Fisheries Service NOAA Fisheries Service Salmon Tagging (2020 - Present) The Navy deployed Pop-up Satellite Archival Tags and acoustic telemetry tags on Chinook salmon in the Gulf of Alaska. Partners: University of Alaska -Fairbanks, in coordination with the Northwest Fisheries Science Center ► The goals of tagging are to: • Identify the temporal and spatial overlap of large, immature Chinook salmon with human activities in the Gulf of Alaska. Tagged Chinook salmon,taken under Alaska Department of Fish and Game permit no.ARP CF-20-039.Photo courtesy of University of Alaska-Fairbanks . Understand large, immature Chinook salmon habitat use in the Gulf of Alaska and migratory routes from Alaska to the Pacific Northwest. • Identify specific Chinook salmon populations in Alaska using genetic analysis of tissue samples taken during fieldwork. ► Preliminary findings of tagging include: • • Chinook salmon prefer to feed and occupy coastal, on-shelf habitats. a M • Chinook salmon appear to have limited occupancy of over-slope habitats. • Some Chinook salmon utilize basin habitats during migration back to natal rivers. • Figure 3.Locations of 2011 to 2015 PASSIVE ACOUSTIC MONITORING Alaska (white circles)and Yukon 2017 to 2019(black Territory circles)High Bottom-Mounted High-Frequency Acoustic Kenai frequency Acoustic Recording Packages(HARPS) Peninsula Recording The Navy determined the presence of marine mammal and Packages anthropogenic sounds through passive acoustic monitoring Cook deployment via bottom-mounted HARPS in the Gulf of Alaska TMAA,which Inlet CA in the Gulf ofAlaska Temporary spanned the continental shelf,slope,and offshore seamounts O CB Maritime Activities at depths from 200 to 1,000 meters(m)(see Figures 3 and 4). • Area(Rice et al., -: 2020). Partners:Scripps Institution of Oceanography Whale Acoustic A Laboratory-University of California San Diego Kodiak 4 O ► 2011 to 2015 Island KOA • 90,000+hours of passive acoustic data were QN recorded and analyzed. O p L100 • No mid-frequency active sonar(MFAS)or low-frequency active sonar(LFAS)detected. • A few non-Navy explosions detected,likely d Figure 4.Mean fishery-related seal bombs based on the spectral u Blue whales g properties of the signals. y 3o weekly presence (gray bars)of 2 m - blue whale calls, ► 2017 to 2019 o _ humpback whale calls,and beaked • 14,060 hours of passive acoustic data was recorded a ; o - whale clicks at a and analyzed. = recording location • MFAS detected only in May 2019,overlapping with 900 Humpback whales on the continental known dates of naval exercise. d slope in the Gulf of - Alaska Temporary • LFAS detected April and May 2019.Navy confirmed Maritime Activities no LFAS was used during this time. Area.Data averaged c 0 across years with • Non-Navy explosives were detected at both the recording effort KOA and CB HARPs(see Figure 3).Navy confirmed 21 Beaked whales from 2011 to 2015; explosives were used during the red bars represent that no at-sea ex p g o 15 standard error(Rice recording period. rn _ et al.,2020). m Data summarized in the Navy-funded Rice et al.,2021 report, a Cetacean Occurrence in the Gulf of Alaska from Long-Term o Passive Acoustic Monitoring, include: Jan Feb Mar A r Ma Jun Jul AugSe Oct Nov Dec ► Increased calling of blue and humpback ► Only rare detections of North Pacific right ► Killer whale call types had different spatial whales in fall and winter,indicated possible whales occurred outside of designated distributions,possibly related to the behavioral shifts between feeding and critical habitat. presence of resident killer whales on the breeding,contrasted by the year-round ► Sperm whale detections highest on the shelf,and transients and offshore killer presence of fin whales. continental slope. whales in deeper waters. ► Seasonal presence of gray whales matched known migration routes. Commercial Underwater Glider After dive,data Q Telemetry via satellite .I The Navy investigated spatial distribution and © transmitted, 1 11m2015 02,0 temporal occurrence of baleen and toothed Z ©GPS obtains position new instruction �NrSj1e,r,1W'ha1e.1 whales in the Gulf of Alaska TMAA through awhilerfaceddownloaded passive acoustic glider survey(see Figure 5).The ---- (if needed)survey focused on the shelf break area between Middleton Island and Kodiak Island(see Figure 6). wnsor,and altimeter 0 Lap to 10% Partners:Bioacoustics Research Program- 4 Dives o 11-25% D50 1917/2015 14.52 Cornell University, Cooperative Institute for 700 m colleting data m O 26-50% Marine Research Studies- Oregon State 0 51-75°% University, and Applied Physics Laboratory- 1000 o Glider Track University of Washington li Glider Tra k ck ► Covered 744 km and collected 680 hours Figure S.Dive sequence for the underwater Seaglider'". • PAM off of acoustic data from July and August 2015. Hydrophone PAM on . tomni-direcnonap ► Recorded 315 cetacean encounters representing / D200 141812015 22:10 six species. ► Blue whale and fin whale calls were the most abundant baleen whale detected. PA 'electronics 10029.r7r20150246 ('side pressure housing ► Acoustic data showed the potential presence of sei whales, but no known vocalizations of humpback, North Pacific right, minke,or gray whales were recorded. ► Sperm whale and killer whale calls were the most abundant toothed whale detected. ► Acoustic data also detected Pacific white-sided dolphin,a possible Stejnejer's beaked whale,and a few unidentified odontocetes. Figure 6.Glider detected sperm whale clicks with circle Seaglider'",photo courtesy of Applied size indicating percentage of recording time per dive with ► No acoustic detections of naval sonar in the study area Physics Laboratory,University of sperm whale detections.Path shown traveled is the during the survey. Washington,Seattle,WA. pre-planned survey track along the slope(Klink et al.,2016). 31 For More Information: U.S. Navy Marine Species Monitoring Program www,na vymarinespeciesmonitoring,us No. U.S. Navy Marine Mammals and Biology Program www.onr.navy,mil/en/Science-Technology/ U.S.NAVY Departments/Code-32/all-programs/marine- mammals-biology STEWARDS OF ► U.S. Navy Living Marine Resources Program www.navfac.navy.mi/Ina vfac worldwide/specialty_ centers/exwc/products and services/ev/lmr.html No. Commander, U.S. Pacific Fleet www.cpf.navy.mil No. U.S. Navy Stewards of the Sea www.usff.navy.mil/environmental/ U.S. Navy Stewards of the Sea Facebook Page , www.facebook.com/USNavyStewardsoftheSea Front cover photo credits, left to right. Beth Swanson,Alamy Stock Photo F: Merrill Gosho,Alaska Fisheries Science Center, NOAA Fisheries Service ` Brenda Rone,Alaska Fisheries Science Center,NOAA Fisheries Service Sally Mizroch,Alaska Fisheries Science Center, NOAA Fisheries Service Back cover photo credit:Vladimir Burkanov,Alaska Fisheries Science Center,NOAA Fisheries Service Community Development Department Jason Bickling ➢ I attended the KPBSD school board meeting on Monday, May 1st held at Seward High School. It sounds like the Borough is funding the district to the cap but there is still a bit of a shortfall though. I would imagine that there will be some FTE cuts to the Seward area schools. The booster club purchased two 15 passenger vans to help with transportation as there isn't any funding for school sports travel. Each team has to independently fundraise for their travel expenses (busses and drivers). The tough part of that is that the smaller and non-central schools have higher travel expenses than the large ones because of longer distances to travel for their same size schools and less students to help raise funds. The Seward Schools have halved in population over the last 20 years and they are in a continued downward trend which is having an exponential impact in this case when things are based on population formulas and then cuts on top of that. I'm hopeful that the increased housing and greater USCG presence will reverse the trend in the coming years. During comments at the end, I informed the School Board of the City's efforts to help with the housing shortage including Short Term Rental Regulation, the DRP Program, and working with the Borough to get developable property outside of city limits opened up. The pools are a continued topic of debate. It was stated that the KPBSD model of the schools owning and operating the pools is not a very common model and not very sustainable. I believe that they will be exploring other ways to make that happen eluding to partnerships with the Borough and/or the local communities. ➢ We are working on seasonal business license STR permitting and compliance as the summer season is upon us. Courtney has created an educational flyer to help property owners understand if they can operate an STR and how they can do it legally. (attached) ➢ I spoke at a Chamber Event for lodging providers / short term rental operators to better help them understand code and permit requirements. ➢ STR Compliance: We have had a few new operators that Hamari/Avenu has found that were not registered with a City and State Business License, Borough Tax, or Short-Term Rental Permit. We are working to bring them into compliance. We are also working with a couple of improper use of property violations. 33 ➢ We are working with IT to expand the applications available within OpenGov. ➢ Now that the snow is going away and the ground is thawing, we are looking to move forward on the Cemetery Columbaria installation in the coming weeks. ➢ Ongoing work on the Public Works Building Project — both new site development and the development of the current site for residential housing after it is moved. ➢ Assisting with work on the Public Safety Feasibility Study. Their site visit was from May 9-12tn ➢ Involved in meetings with the Department of Corrections staff (both state and local level officials) in regard to working on some possible housing solutions for the Spring Creek Facility. ➢ I briefed the Superintendent of the Kenai Peninsula Borough School District on our efforts and progress on the housing issues. ➢ Working on Code Revisions in Title's 8, 9, 15, and 16. ➢ We are working on developing some information that will be brought before the Planning and Zoning Commission for discussion including an empty lot inventory list and unoccupied home list. ➢ Selena is continuing work on the Public Works GIS. She is getting equipment spec'd and ordered and will be training the water /wastewater staff in its use. ➢ At the P&Z Work Session on May 23rd, Selena will be presenting the cemetery GIS presentation and we will be discussing the Cemetery Master Plan (which hasn't been updated since 1996). ➢ 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. 34 Short-term Rental Requirements byZoning District AResidential Zoning Districts (RR, R1, R2, R3, UR) A Commercial Zoning Districts (OR,AC, HC, CB) • Single-family dwelling • All types of dwellings Owner of the property must live in the » Maximum of 5 bedrooms may be rented home being used as a short-term rental in a dwelling unit No more than half of the bedrooms (rounded down if an odd number) may be • Multi-family structure rented » Maximum of 5 bedrooms may be rented A maximum of 3 bedrooms may be rented in a dwelling unit Maximum of 5 units may be rented • Duplex Owner of the property must live in one of the dwelling units Maximum of 3 bedrooms may be rented in A All Zoning Districts a dwelling unit • Business license and fee • Short-term rental permit and fee • Multi-family structure • Floor plans, parking plan 50% of the dwelling units may be used as • Proof of insurance for rental dwelling short-term rentals (rounded down if an odd • Life Safety Inspection number) Owner of the property must live in one of the dwelling units Maximum of 3 bedrooms may be rented in *Seward City Code 15.10.226 a dwelling unit https://library.municode.com/ak/seward/codes/code_ Maximum of 5 units may be rented of—ordinances Community Development planning@cityofseward.net 410 Adams St `� 907-224-4020 Seward, Alaska j Electric System Director Rob Montgomery ➢ Infrastructure Project— Sturgeon Electric began construction work the week of May 8 along Nash Road as part of the transmission system rebuild. Bryan Thrall, line foreman for Seward, is serving as the project manager and is overseeing Sturgeon's work. The project will continue into the winter with completion set for 2024. In addition to the Nash Road project, Seward is working with Electric Power Constructors, Inc., in preparation and planning for the complete refurbishment of the Fort Raymond and Lawing substations. This construction effort will get underway in July. ➢ Electric Rate Study— Mike Hubbard of The Financial Engineering Company will be in Seward June 13-16 to begin his discovery and due diligence for the electric rate study. The study is expected to run through late August with a presentation to Council to follow shortly thereafter. The study will be based upon "cost to serve"to ensure each customer classification is charged appropriately to recover expenses associated with each customer class. ➢ Letter of Support—The Railbelt utilities (Matanuska Electric, Golden Valley Electric, Homer Electric, Chugach Electric, and Seward Electric), the Alaska Energy Authority and IBEW 1547 sent a jointly signed letter to the US Department of Energy encouraging support of federal grant applications for the Railbelt. The letter was mailed the week of May 15. ➢ Customer Job Orders— With the construction season getting underway, the electric department is beginning to process more customer job orders. We currently have one job completed, four jobs being processed, six jobs ready for the crew, and six jobs waiting for the customer to complete preparation work. 36 Los, CMR Finance Department Sully Jusino Deputy Finance Director Mission Statement: Valuable Objectives: 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: The finance department and the Carmen Jackson team continue to work on utility billing issues and resolving old problems identified through internal audits of the City. This includes a collection program to work on collecting outstanding balances and correcting billing issues. A couple Carmen Jackson staff will be on site during May to continue with this work and other projects. The City Council approved the outsourcing of utility billing with Util-Assist at at the May 8 council meeting and the department is moving forward with implementation at the end of May. The finance department is assisting with information and analysis of the ongoing water/sewer rate study that has been in progress for several years. Change for summer rates for residential and SGS will be on 4/15 reflected in the 5131 bill. Annual Audit: The 2022 fiscal year audit fieldwork with the auditors from Altman, Rogers & Co., has concluded. The only outstanding items relate to the integration of Providence health financial information, which relies on receiving their final audit and capital asset information. Overall we anticipate completing the process in a more timely manner than the last couple of years. Staffing: The finance department continues to struggle with retaining staff, but does expect some relief with the outsourcing of the utility billing position. The City has posted for an in-house Finance Director, which when filled will also alleviate some of the staffing issues. City Code and Fiscal Manual updates: The department continues to review the fiscal manual and portions of the City code with financial implications as part of the overall updates to policies and procedures. 37 k ]' :pt Fire & Building Department Fire Chief Clinton Crites _ 2023 TYD Statistical Information: Fire & Life Safety Inspections: 124 with 66 violations noted. We NEED volunteers, if you or Emergency Calls: 082 someone you know is interested in serving your community, please New Building Permits Issued 2023: 22 give us a call at 224-3445 or stop with a total construction valuation of $23,911,187.00. by at one of our trainings on Wednesday evenings at 6:00pm. • Mark your calendars; Phoenix Chapter Fundraising Cruise May 27t"! • New Tsunami information signs were installed throughout Seward providing the latest inundation and evacuation areas ar Emergency lnfom ahon dne ti the la�1 kad¢a.SinGnrr-91.7 fin 917 f'm amf i` I s Hazard;. — _ 5—d P_y Individuals interested in keeping your home safe from fire should contact the yr Seward Department CommunityReduction division for • • • about Become a Volunteer Firefighter or EMT FIRE PEPT, Stop byfhe Seward Fire department for more information -- S.F.D. N` y FEMALE FIREFIGHTERS _ u Blazing trails since 1818 u •f person I Proceeds FirelighteraM Trainino SHURDAY, Live Duftry Auction MAY 27v 2023 11IT" ANNUAL Prime I FIREFIGHTER / EMT salmonn""no AUCTION CRUISE o Nost Bar with Alaskm p F Join the men and women of the Phoenix Chapter of the Alaska State Firefighters Association for an auction and dinner cruiser 0011160 i €, Seward, Bear Creek, Moose Pass, and Lowell Paint 11011 ON ego residents - Support your local firefighters and EMTs Stop by the Seward Fire Dept. or Call (907) 4- 445 for tickets today PO Box 3582 Cruise runs 6:30- 10:00 pm Seward, Check-in at Major Marine Fours office in the Small Boar Harbor at 5:45 pm Phone: Cruise & dinnerprovided in part by the generosity Credit cards accepted of MMT & their staff. 1 gj� larLl `6 40 Harbor Harbormaster Norm Regis ➢ We have been keeping up with the snow on both sides of the bay. ➢ The 50-ton and 330-ton Travelift has really picked up; fishing vessels are going into the water for the season. ➢ We are continuing to train several new harborworkers on the maintaining and operating the Travelifts. ➢ We are working on the SMIC yard drainage to keep water flowing into the ditches. ➢ The last thing we need to do is to chlorinate the water system on G, K and L-float, this will happen this week. Then we can apply for our DEC permit. ➢ 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 open seven days a week starting May 7. ➢ The harbor is fully staffed. ➢ We are continuing to work with the Director from the Pacific Northwest &Alaska Maritime Administration U.S.DOT on finding a suitable grant for the washdown pad project. ➢ 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. (Have not received any response as of today) ➢ The harbor is helping the parking department prepare the parking lots for striping; the striping will start on 5-21, dependent on weather. 41 Seward Community Library & Museum Bailey Sayler MUSEUM WINDOW DISPLAY Alaska Steamship Company Menus Featured in the Windows of History display is a collection of artwork by Josephine Crumrine and Eustace Ziegler that graced Alaska Steamship Company souvenir menus throughout the 1930s- 1940s. You'll also see a brief history of Alaska Steam and some of its historic brochures. 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 At the Library: Adult Discovery Kits • Knitting • Crocheting • Watercolor • Soapmaking • Pyrocraft-woodburning with stencils • Stargazing Upcoming Events: Movie @ 2 Starts-Tuesday, May 16 at 2 pm. 42 Summer Reading Challenge Sign-ups have started. Come sign-up for the summer reading challenge. Saturday Storytime: Join us for Story-time and an activity every Saturday at 11:00 a.m. Library hours Tuesday— Friday 9 a.m. — 6 p.m. Saturdays 9 a.m.— 5 p.m. Museum Summer Hours Tuesday—Saturday -11-5 p.m. We served 5600 patrons for the month of April 2023. We are currently taking passport appointments for new passports. The library does not do renewals. Please call 907-224-4082 to make an appointment. MOVI WA VES OVER SEWARD 1954 EARTHQUAKE &TSUNAMI $5.00 Admission Kids under 12 get in free Shows once a day at 2 PI'v'I Tuesday - Saturday 25 minutes Community Room Seward Community Library & Museum 239 6th Ave 907-224-4082 www.cityofsevvard.us.libmus S W CFI O Friends_ of the S and Library 43 �4 Seward Summer Reading Program The Seward Community Library&Museum is happy to announce our new theme for the 2023 Summer Reading Program is Community Heroes! We are partnering with different community heroes in Seward such as Alaska Waste, the Alaska Sealife Center, the fire department and many more! The program will be held every Wednesday from 5131 to 8 f 2! Program Includes, • Six reading logs (4 hours each in 20 minute blocks) r Weekly field trips or presentations hosted at the library .. � Starter goodie bag Weekly dramatic play toys in the Children's Roam A free baby bear ice cream from Sweet Darlings upon completion of the program! Register today in person at the library front desk or online by scanning the OR code. Registration ends 5/24! Seward Community Library&Museum 907-224-4082 all rl libmus@cityofsevvard.net end of the $award We appreciate the support from the Seward Library` a Rl^IGMI `A,yW Community Library Association! ry s�nwY E AA 5/12/2023 Public Works Department Doug Schoessler - Director ➢ Public Works Director • US Army Corp of Engineers -Tunnel: -No new changes. • Public Works Facility Relocation: -R&M Engineering will provide an engineering and a construction estimate for use in bonding for funds to build. They plan to have this all complete in June of 2023. • Utility extensions: -We are working on the design for current Public Works location water and sewer mains to be ready service all future residential uses. Also, getting plans for sewer and water construction at the new Public Works site. • Federal FEMA and State Emergency Management: - The project will continue with Architectural and Engineering (A&E). This will start the Category C portion for bringing the road to a final condition. Cat C work will also include some debris cleanup behind the concrete blocks along the slide. ➢ Buildings -We hired the custodian position that will work on the Library, Annex, and where needed for Public Works. The Custodian will start on Monday 5/15/23. ➢ City Shop -Next week all City vehicles will have the winter tires changed over to summer tires. A busy week for sure. The in-between spring/winter weather has our multiple-equipment uses needing servicing while we change tasks to keep up with the seasonal conditions. The garage doors and openers are being checked and serviced. ➢ Streets Department -Sweeping has begun and will continue for the next month or two. -Street crews will continue to grade gravel roads and patch potholes throughout the spring. -Many alleys are crowded up and being overused from the sides. The alleys are only 20 feet wide and the power poles take up 2-3 feet of that. We need your help to move all encroachments back Page 1 of 3 45 5/12/2023 across your property lines to allow us to do maintenance work to get the alleys in better condition for everyone. Thanks for helping us make the alley access smoother! 44 j $" .71 .r ➢ Water &Wastewater Department -Water turn-ons at the harbor and parks should be complete in the next day or two. -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. -------------------------------------------------------------------------------------------------------------------- Page 2 of 3 46 5/12/2023 ➢ Wastewater Lagoon: • Using a multi-function portable probe, perform summertime DO, pH and temperature measurement profiles in grid pattern from both lagoons during a period of non-rainy conditions and at least 3 days after a significant rain or high user population event. Testing profiles are being logged for all measurements. We plan to finish the full recommended data collection in June 2023. • During the same effort, from at least four separate locations in each lagoon aeration zone (front and back zones of both basins), collect composite samples of BOD, TSS, carbonaceous BOD (CBOD), soluble carbonaceous BOD (SCBOD), ammonia, total Kjeldahl nitrogen (TKN), alkalinity, nitrites nitrates Testing profiles are being logged for all measurements. We plan to finish the full recommended data collection in June 2023. • -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. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ -A repeating reminder to all residents not to flush wipes,feminine products, etc. clown the toilet. Also, never put grease down the drain. Sewer clogs due to these items cost the sewer utility thousands of SS 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. Page 3 of 3 47 Parks & Recreation Sports & Recreation at AVTEC Gym *Gym re-opened Wednesday, May 17t" and will remain open until June 30t". Fall re-open date TBA. *Hours of Operation (subject to change depending on staffing): Tuesday - Friday 10am-8pm Racquetball court reservations: htti)s://seward.recdesk.com/ -Tuesday - Friday: 2-7pm Pricing: Memberships and punch cards can be purchased online at httl)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 Senior Walking Hour: 11-12pm Craft Night: 6-8pm (multi-purpose room) AVTEC organized activity: 6-8pm (public welcome to join) Wednesday: Open Gym: 11-3pm Senior Walking Hour: 11-12pm Open Pickle Ball: 6-8pm Cribbage Meetup: 6-8pm (multi-purpose room) Thursday: Senior Walking Hour: 11-12pm Youth Gym: 12-1pm Open Basketball: 6-8pm Chess Meetup: 6-8pm (multi-purpose room) Friday: Senior Walking hour: 12-1pm Youth Open Gym: 3-5pm Open Volleyball: 6-8pm *Closed Saturdays. Upcoming Leaques, Events &Activities (Registration at Seward.recdesk.com): May 13th: Pink Cheeks Triathlon 10 am May 21st: Exit Glacier Race 10 am May 27th: End of School Bonfire 6-8pm (First Lake Pavilion) June 9th: Bear Bell Run: 5:30pm (Branson Pavilion) Sports & Rec Recent Events Recap: We're in the midst of our big events here at Sports and Rec and the summer has kicked off with a lot of fun! On May 6th, we had our Super Saturday Cleanup as well as our Bike Rodeo. A big thank you to the Police Department, Fire Department, Providence, Heather, Carl and Chuck as well as our other employees who helped out on the day. There were five winners from Super Saturday, three individuals , a youth group and a family. Prizes were railroad tickets, a kayaking trip with Sunny Cove, a ziplining trip with Stoney Creek, a tour with Alaska Adventure Tours and a tour with KFT. Winners were Grace Williams, Esther Stoltz, Stephanie Wright, The Three Amigos and the North Family! At our rodeo we handed out around 50 helmets and the police an fire department added food and prizes to go along with the games on the street! Over the past week, we've been all hands on deck for our Pink Cheeks Triathlon that went super smooth! Again the fire department, and lots of volunteers were the driving force behind our successful day! The Avtec gym open 48 back up on Wednesday May 17t" and we've seen an influx of folks on certain days in the gym as the summer folks have made there presence felt at the gym. Next event on the docket is the Exit Glacier 5K, 10K Race on Sunday May 21st! Looking for some volunteers and more participants for that. —Russ White Don't forget about our self-guided challenges for the community for the summer; Drive Less, Move More Seward Emissions Challenge and the BioBlitz Challenge. Trails Challenge will be coming out soon! 49 CO11flucnee Strategies City of Seward Alaska Weekly Session Report 2023 Legislative Session 33rd Legislature— 1St Session May 14,2023 Legislature Majority press releases&announcements: House Majority HOUSE SHOWS COMMITMENT TO FIGHTING FENTANYL DISTRIBUTION &OVERDOSE DEATHS WITH HARSHER PENALTIES JUNEAU -With a vote of 35-5 the Alaska House of Representatives has passed HB 66 and transmitted it to the Senate for final deliberation. The bill,which was introduced by the Governor and carried by Representative Craig Johnson (R-Anchorage), establishes harsher penalties for those who have distributed drugs that directly lead to a user's death, including fentanyl -which has had a devastating effect on Alaskan communities in the past decade. HB 66 was crafted to attack the State's drug problem at the distribution point. It should not be understated just how powerful a deterrent these increased penalties have on drug dealers and the profiting from the pain and suffering of others. By putting drug dealers on notice with harsher penalties and less leniency for first-time offenders, the Alaska House Majority is confident a noticeable difference can be made in our state. P.O. Box 1 10190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 50 Confluence Strategies "Alaska has been hit hard by fentanyl. It's imperative that we take action to address it," said Speaker Cathy Tilton (R-Wasilla). "House Bill 66 is an important step in that direction. We are sending a clear message that those who engage in these dangerous activities will be held accountable for their actions. This is about justice for the victims and their families and ensuring that our communities are safe." When the administration first transmitted the bill, the Governor referenced the Department of Health's 2021 Drug Overdose Mortality Update,which shows that Alaska experienced the largest percent increase of drug overdose deaths compared to all other states.While fentanyl is not the sole perpetrator, it remains one of the leading causes of overdose deaths, and those numbers continue to climb. "This drug has caused countless deaths in our state, and we must do everything in our power to prevent more Alaskans from falling victim to its devastating effects," stated Representative Craig Johnson (R-Anchorage). "I am thankful to the Governor for submitting the bill to us, grateful for our members working diligently toward its passage, and optimistic that the Senate will take swift action so we can show our cities and towns that their elected officials care about their health and safety." This is a critical moment for Alaska and our defense against drugs and those who dare to distribute them to our people. The Alaska House Majority anticipates swift passage through the Senate. While we recognize there is more that must be done to protect our communities and homes across the state,we are proud of this vital step forward. Senate Majority Alaska Senate Passes Increase to Public Education Significant Funding Increase Will Provide Classrooms and Teachers with Desperately Needed Resources Juneau - Today,the Alaska State Senate passed Senate Bill 52 to increase education funding by$175 million for Alaska's public schools and correspondence programs. This significant increase provides school districts with a $680 addition to the Base Student Allocation (BSA) calculation,which the Senate Education Committee determined is the simplest, fairest, and most effective way to increase education funding for students in every public school and correspondence program in Alaska. P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 51 Confluence Strategies "The Alaska Constitution requires that we, as a state, maintain a public education system so that every child has access to good schools staffed by skilled teachers.We've heard from parents, students, teachers, school officials, and concerned citizens who all say that Alaska's public education system is struggling to meet the needs of our students," said Senate Education Committee Chair Senator Loki Gale Tobin, D-Anchorage. "Without additional resources, we will see more school closures, continued teacher attrition, and increased class sizes. This increase in resources will breathe new life into schools and set Alaska kids up for success with a great public education." "Providing adequate funding for public education is the number one priority for the Alaska Senate Majority. This is a fiscally responsible investment in public education and represents a bold policy choice to help Alaska's public schools address years of increasing costs," said Senate President Gary Stevens. R-Kodiak,Vice-chair of the Senate Education Committee. In addition to increasing the BSA, Senate Bill S2 includes additional support for pupil transportation and residential schools. The legislation also calls on the Alaska Department of Labor and Workforce Development to collaborate with the Alaska Department of Education and Early Development to gather data on the progress of each high school graduating class in a school district. "Alaska is a unique state, and our students follow unique paths. To overcome the challenges that public schools face,we need to look at all aspects of our public education system, help it meet high standards, and set students up for success in life, no matter what route they follow-be it college,vocational and educational training, internships, or something else," said Senator Click Bishop, R-Fairbanks. "If we can't get students to the classroom or help them study at residential schools,the resources waiting for them there will not be fully tapped.Without sufficient funding for pupil transportation, school districts may be forced to cut school-bus routes - placing even more of a burden on parents, especially those who pay for childcare. SB S2 helps students in the classroom and helps get them there." Legislature Passes Bill Removing a Barrier to Entry for Prospective Truck Drivers JUNEAU - Today,the House of Representatives passed Senate Bill 123 by the Senate Transportation Committee,which repeals the requirement that applicants for a commercial driver's license (CDL) hold a regular driver's license for one year. This requirement was enacted in 198S before state and federal regulators modernized the training and licensing standards for CDLs. Today, an individual seeking a CDL has an extensive training and testing process to go through to ensure they are ready to drive commercial vehicles safely. P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 52 Confluence Strategies "Alaskans are ready to work, and removing this unnecessary barrier to entry will help our state attract drivers to fill jobs in the private sector, our school districts, and our city streets," said Senator James Kaufman R-Anchorage, Chair of the Senate Transportation Committee. "Alaska has a critical truck driver shortage, and sometimes a small change like this can make a noticeable impact on our economy. I am encouraged by the effort by both bodies to help close our significant workforce gap." "I'm excited to be a part of passing this workforce bill," said Rep. Julie Coulombe, R- Anchorage, sponsor of House version of the bill. "It removes an unnecessary barrier in the statutes and affords people the opportunity to get a CDL without delay. With future infrastructure projects coming online with the Jobs Act funds and possibly Willow,we need as many people as we can get to move those projects forward." The Alaska Trucking Association estimates that Alaska is 500 truck drivers short of our needs, presenting a risk to food security,tourism, construction, mining, oil and gas, etc. For urban residents, getting a driver's license young is common. However, for individuals coming from rural communities with limited or no DMV access, new immigrants and refugees (some with years of trucking experience in their home country), and a growing number of urban adults waiting to get their regular license,the year-long wait to start the commercial driver's licensing process poses a significant barrier to entry for those seeking to enter the trucking industry. Minority press releases&announcements: House Minority Legislature Passes Legislation Relating to E-Bikes JUNEAU - Legislation sponsored by Rep. Ashley Carrick that will define e-bikes in statute cleared its final hurdle and passed the Legislature. Back in April, House Bill 8 passed the House with bipartisan support on a vote of 39-1. On Monday, HB 8 passed the Senate on a vote of 18-1 and yesterday the House agreed to the Senate's changes to the bill. Versions of this bill have been in the legislature since 2019 and the passage of this bill makes Alaska the 40th state to adopt this industry standard definition of an electric- assisted bicycle. This bill defines e-bikes as bicycles while preserving municipal and state agency control of what paths and trails e-bikes may be used on. "I am very excited that after five sessions this bill has finally passed the Legislature and I hope that Governor Dunleavy signs this bill into law," said Representative P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 53 Conflucnee Strategics Ashley Carrick (D-Fairbanks). "I would like to thank my former boss and predecessor Representative Adam Wool for his previous work on this bill. I look forward to finally enjoying an e-bike myself." HB 8 now heads to the Governor's desk for signature. Bills Introduced This Week: SENATE Bill Short Title Prime Sponsor(s) SB 144 RATES: MOTOR VEHICLE WARRANTY WORK SENATOR CLAMAN SB 145 VOLUNTEER LABOR COMPLIANCE OFFICER SENATE LABOR&COMMERCE PRGM SB 146 GAMING; ELECTRONIC PULL-TABS SENATE RULES BY REQUEST OF THE GOVERNOR SB 147 REEMPLOYMENT BENEFITS SENATOR KAUFMAN SB 148 FISHERIES REHABILITATION SENATOR BISHOP PERMIT/PROJECT HOUSE Bill Short Title Prime Sponsor(s) HB 194 CONSENSUS ESTIMATING CONFERENCES; REPRESENTATIVE CARPENTER BUDGET HB 195 COOK INLET: NEW ADMIN AREA;PERMIT REPRESENTATIVE RUFFRIDGE BUYBACK HB 196 FOOD STAMP PROGRAM ELIGIBILTY REPRESENTATIVE MINA HB 197 ELECTRONIC GAMING ON AMHS FERRIES REPRESENTATIVE SUMNER BY REQUEST HB 198 FOOD STAMP PROGRAM ELIGIBILTY REPRESENTATIVE GRAY HB 199 TRANSFER OF RAILROAD PROPERTY HOUSE TRANSPORTATION HB 200 GAMING; ELECTRONIC PULL-TABS HOUSE RULES BY REQUEST OF THE GOVERNOR HB 201 RESIDENCY REQ: HUNTING, TRAPPING, REPRESENTATIVE HIMSCHOOT FISHING P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 54 Confluence Strategies Bills Tracked: BILL SHORT TITLE SPONSOR(s) STATUS DATE HB 35 REPEAL CERTIFICATE OF NEED RAUSCHER (H)L&C 02/10/23 PROGRAM HB 49 CARBON OFFSET PROGRAM ON RLS BY REQUEST OF (H) FIN 03/20/23 STATE LAND THE GOVERNOR HB 50 CARBON STORAGE RLS BY REQUEST OF H FIN 03 13 23 THE GOVERNOR ( ) / / HB 70 MUNICIPAL PROPERTY TAX TOMASZEWSKI WITHDRAWN 05/12/23 EXEMPTIONS MUNI PROP TAX HB 84 EXEMPTION/TAX BLIGHTED SUMNER (H) CRA 02/27/23 PROP HB 121 UTILITIES:RENEWABLE SUMNER (H)ENE 03/17/23 PORTFOLIO STANDARD HB 122 RAILROAD CORP.FINANCING TOMASZEWSKI (H)TRA 03/17/23 HB 133 PUBLIC MEETINGS:EXEMPT SUMNER (H)CRA 03/27/23 MUNI SVC AREA BDS HB 134 PROPERTY TRANSFER TAX; MUNI COULOMBE (H)CRA 03/27/23 TELECOMM TAX HB 150 RESIDENTIAL BUILDING CODE SUMNER (H) L&C 03/31/23 HB 154 AK HOUSING FINANCE CORP: RLS BY REQUEST OF (H) FIN 04/19/23 SUSTAIN ENERGY THE GOVERNOR HB 184 SHORT-TERM RENTAL UNIT GRAY (H)L&C 05/01/23 REGISTRY SB 33 RENEWABLE ENERGY GRANT KAUFMAN (S) FIN 02/17/23 FUND SB 48 CARBON OFFSET PROGRAM ON RLS BY REQUEST OF (S) FIN 05/05/23 STATE LAND THE GOVERNOR SB 49 CARBON STORAGE RLS BY REQUEST OF S RES 01 27 23 THE GOVERNOR ( ) / / SB 67 PFAS:USE FOR FIREFIGHTING, KIEHL (H) FIN 05/09/23 DISPOSAL P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 55 Confluence Strategies SB 68 PUBLIC NOTICE FOR WATER GIESSEL (S) RLS 05/08/23 RIGHTS SB 77 MUNI PROP TAX EXEMPTION/TAX DUNBAR (H)FIN 04/19/23 BLIGHTED PROP SB 79 RECLASSIFICATION OF FIRST BISHOP (S) CRA 02/24/23 CLASS CITIES SB 92 STATE OWNERSHIP OF GIESSEL BY REQUEST (H) RES 05/03/23 SUBMERGED LAND SB 101 UTILITIES:RENEWABLE TOBIN (S) L&C 03/15/23 PORTFOLIO STANDARD SB 105 RAILROAD CORP.FINANCING TRANSPORTATION (S) TRA 03/15/23 SB 125 AK HOUSING FINANCE CORP: RLS BY REQUEST OF (S) FIN 04/05/23 SUSTAIN ENERGY THE GOVERNOR Hearing Schedule Next Week:: (H)FINANCE May 15 Monday 10:30 AM ADAMS 519 --Please Note Time Change-- += SB 41 APPROP: CAPITAL/SUPPLEMENTAL <Pending Referral> + Bills Previously Heard/Scheduled (H)FINANCE May 15 Monday 1:30 PM ADAMS 519 + SB 48 CARBON OFFSET PROGRAM ON STATE LAND <Pending Referral> + SB 140 INTERNET FOR SCHOOLS <Pending Referral> + Bills Previously Heard/Scheduled P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 56 Confluence Strategies Hearing materials/Documents Qf interest: SB140-INTERNET FOR SCHOOLS SB140 Letter Ouintillion.pdf SB 140 USAC E rate Program Support Doc.pdf SB 140 Support Document BAG Flyer DEED website.pdf SB 140 Sponsor Statement.pdf SB 140 Sectional Analysis.pdf SB 140 GCI BAG Support Letter 230504 192048.12df SB 140 FY 2021 Funds Awarded to School Districts DEED website.pdf SB 140 BAG FY2019-FY2023 Awards DEED.pdf SB 140 FCC E Rate Program Support Document.pdf SB 140 DEED LAM FY23 School Broadband Assistance Grants (BAGI Districts and Schools.pdf SB140 -Latest version of bill-S Fin SB 140 work draft version S.pdf SB 140 Letters of Support.pdf SB 140 Eligible School Sites SB 140 5.8.2023.pdf SB 140 Public Testimony 051023.pdf SB107 -PERMANENT FUND DIVIDEND;POW SPLIT SB107 POW split initial presentation 3-21-23 final.pdf SB 107 sectional 3-21.12df SB107 sponsor statement 3-21.12df SB 107 Opposition Alle rg ezza.pdf SB 107 DOR ASD 031723.pdf SB 107 LFD SB 107 Presentation SFIN 3-21-23.pdf SB 107 work draft version Y.pdf P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 57 Confluence Strategies SB 107 POW split bill Amendment 1 Y.3 back-up.pdf SB 107 POW how we got here 4-12-23.pdf SB 107 Capital Budget assumption Backup Packet.pdf SB 107 Modeling Slides 20230328.pdf SB 107 POW sectional.pdf HB38/HJR2 -APPROPRIATION LIMIT; &CONST.AM:APPROP LIMIT BACKUP HB 38#1 #3.12df BACKUP HJR2 #4 DATA.pdf BACKUP HJR2 #4.12df HIR2 Backup for STAPP Amendment#2 and#4.pdf HIR 2 Amendments 1-4 StaIp 051123.pdf HB 38 Amendments 1-4 051123.12df SJR12 -SECTION 404 CWA PERMIT PROGRAM SIR 12 Sponsor Statement v A 05.12.23.12df SIR 12 Support Document-DEC 404 FAO_pdf SIR 12 Support Document-DEC 404 Assumption Cheat Sheet.pdf SIR 12 Fiscal Note 05.12.23.12df SIR 12 Amendment#1.pdf HB 39 Document B SCSS Fiscal Picture CORRECTED.pdf HB 39 Document F T SFinSup Agency Summary-All Funds.pdf HB 39 Document D T SFin Agency Summary-All Funds.pdf HB 39 Document E T SFinSup Agency Summary-UGF Only_.pdf HB 39 Document C T SFin Agency Summary-UGF Only_.pdf HB 39 Document A-Conferenceable UGF Items Summary SCS4 Pete Alexei 3.12df HB 39 work draft version T.pdf P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 58 Conflucnee Strategics Administration Governor's Office: Governor's Press Releases Alaska Legislature Confirms Governor Dunleavy's Commissioners May 9, 2023 (Juneau) - Today, The Alaska State Legislature has confirmed all of Governor Mike Dunleavy's appointees to lead state departments. In addition, Commissioner Jason Brune of the Department of Environmental Conservation was confirmed unanimously to be the Lt. Governor's successor. "Thank you to the Legislature for approving all my appointees today in a joint session," said Governor Dunleavy. "These dedicated Alaskans will serve our state with pride. I have enjoyed working alongside each of them, and I know they will continue to prioritize helping Alaskans and doing what is best for our great state. Thank you, commissioners, for your commitment." The confirmed commissioners are: Commissioner Jen Winkelman, Department of Corrections Commissioner Jen Winkelman started with the Department of Corrections in 2001. She has served as a Probation/Parole Officer in various capacities with the Division of Pretrial, Probation, and Parole (DP3) and the Division of Institutions in Fairbanks, Palmer, and Juneau. Most recently, she was the Director of DP3. Born and raised in Fairbanks, she has a bachelor's degree in justice from the University of Alaska- Fairbanks. She previously served on the Fairbanks and Juneau reentry coalitions and the Interstate Commission for Adult Offender Supervision. She serves on the Governor's Council for Homelessness and the Alaska Police Standards Council. Commissioner Heidi Hedberg, Department of Health Commissioner Heidi Hedberg has been with the state since 2009, serving in various capacities within the Division of Public Health, Department of Health, and most recently, as the Director for the Division of Public Health. She holds a Bachelor of Science degree from Alaska Pacific University. She moved to the state in 1995 from Seattle, Washington. Prior to her state service, she worked with various non-profit organizations for twelve years. She also chairs the Governor's Advisory Council on Opioid Remediation and serves on the Governor's Council on Homelessness and State Emergency Response Commission. P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 59 Conflucnee Strategics Commissioner John Boyle, Department of Natural Resources Commissioner John Boyle moved to Alaska in 2010 after graduating from law school to serve a judicial clerkship in Fairbanks. Following the conclusion of the clerkship, he moved to Utqiagvik to work as an Assistant Borough Attorney and later Chief Advisor to the Mayor and Director of the North Slope Borough's Government and External Affairs department. In 2016 he moved to BP as their Director of Government Affairs before joining Oil Search (now Santos) as Government Affairs Manager. He earned a Juris Doctorate from J. Ruben Clark Law School at Brigham Young University and a Bachelor of Science in Management and Finance at Brigham Young University. Commissioner Adam Crum, Department of Revenue Prior to being appointed commissioner of the Department of Health&Social Services in 2018, Commissioner Adam Crum was executive vice president of his family's company, Northern Industrial Training. Commissioner Crum is active in community service organizations and has served as a board member for groups like the Salvation Army and MyHouse, a group that works specifically with homeless youth. Both groups work with clients with mental health, substance use disorder,transitional housing, and workforce development issues. He has a bachelor's degree in psychology from Northwestern University and a Master of Science in Public Health from Johns Hopkins University. Commissioner Kim Kovol, Department of Family and Community Services Commissioner Kim Kovol has over 25 years of experience in the private sector in executive leadership, management, operating licensed childcare facilities, organizational development, restructuring logistics, and working in the human and social services realm with youth and adults. Prior to being appointed commissioner, Commissioner Kovol was Special Assistant to Governor Dunleavy with a social services portfolio focusing on Domestic Violence, Sexual Assault, Missing and Murdered Indigenous Persons, Human and Sex Trafficking, Homelessness, Foster care, Early Childcare, Eldercare, Opioids / Fentanyl, and Suicide Prevention. Commissioner Kovol has a bachelor's degree in liberal arts and studies (K-8 Education) from San Diego State University and a Master of Social Work from the University of Alaska Anchorage. Agencies Announcements— P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 60 Confluence Strategies Press ReleasesfReports/Public Notices: Oil Prices and Production Oil and Gas Prices for 5/12/2023 ($/barrel) ANS West Coast $75.04 ($1.16) 4 West Texas $70.04 ($0.83) 1 Intermediate Brent $74.04 ($0.94) 4 Henry Hub $2.27 $0.08 t mmBTU (BBLs) ANS Production 485,5615/11/2023 Major News Articles / Political Items of Interest Health Alaska Senate advances bill to establish subscription-based health care The Alaska Senate on Wednesday passed a bill that would legalize subscription-based access to medical providers in an effort to address rising health insurance costs. Direct health care agreements are a method adopted by several states that lets patients pay a monthly subscription fee to access specified medical care, such as primary care providers or dental care, rather than for a per-service rate. https:llwww.adn.com[politics/alaska-legislatureZ2023105 Ill/alaska-senate-advances- bill-to-establish-subscription-based-health-care/ Business/Economy P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 61 Conflucnee Strategics Photos: Port of Alaska sees first ship at new dock The Port of Alaska saw the first ship to dock at the new Petroleum and Cement Terminal on Tuesday, as well as container ships from Tote and Matson, and a Crowley fuel barge and its tug boat. https:[/www.adn.com/visual[photos/2023/O5/10[photos-port-of-alaska-sees-first-ship- at-new-dock/ GCI agrees to pay$40 million in settlement with federal government The largest telecommunications company in Alaska has agreed to pa�Lthe federal government$40 million to resolve allegations that it knowingly inflated prices under a federal program that subsidizes telecommunications costs for rural medical providers,the Justice Department said Thursday. https:llwww.adn.com/business-economyZ2023105/11 ci-agrees-to-12ay-40-million-in- settlement-with-federal-government/ State Budget/Programs Sen. Sullivan joins 42 senators saying'no'to raising debt ceiling without spending cuts,budget reforms Alaska U.S. Sen. Dan Sullivan is part of a group of 43 Republicans who put Senate Majority Leader Chuck Schumer on notice this weekend: They are committed to opposing raising the national debt ceiling without substantive spending and budget reforms. Sen. Lisa Murkowski did not sign the letter. https:,//mustreadalaska.com/sen-sullivan-j oins-42-senators-saying-no-to-raising-debt- ceiling-without-spending-cuts-budget-reforms/ High prices and lengthy waitlists: How families are coping with Alaska's child care crisis Many day cares have closed, and low wages have led to an exodus of workers. Alaska budget stalled with special session all but inevitable A final budget deal appeared unlikely before the end of the legislative session as Alaska House and Senate leadership met behind closed doors in an attempt to break the logjam Saturday— four days before the session is set to end. https:llwww.adn.com[politics/alaska-legislatureZ2023105113/alaska-budget-stalled- with-special-session-all-but-inevitable/ Alaska House falters on fiscal plan bills amid majority feud The Alaska House Republican-led majority's draft plan to address the state's structural deficit has faltered,with days left before the expected end of the legislative session. P.O. Box 1 10190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 62 Confluence Strategies https:Ilwww.adn.com[politics/alaska-legislature12023105113/alaska-house-falters-on- fiscal-plan-bills-amid-majority-feud/ Politics/Police OPINION: Enough talk of a fiscal plan.Alaska needs action. By Cliff Groh The House Majority is the biggest roadblock to long-term fiscal stability for Alaska. Leadership will not bring bills to the floor that would address our state's massive and growing structural deficit that threatens funding for roads, schools, public safety, and Permanent Fund dividends. Additional revenues are an essential element to fixing that structural deficit, and it's time for the House Majority to put aside the rhetoric and act. httl2s://www.adn.com/opinions/2023/05/07/opinion-enough-talk-of-a-fiscal-plan- alaska-needs-action/ Opinion: Sales tax proposal defies logic Nor does it even make horse sense. By Frank Murkowski The governor appears to support a $2,700 Permanent Fund dividend. Some in the Senate propose a $1,300 dividend. If the $2,700 dividend were to be approved by the Legislature it would create a $600 million deficit. That is about what the governor would need to come from his sales tax proposal to fund his higher dividend. So,the sales tax proposal funds the difference, and it comes from the pocket of every Alaskan on virtually every purchase he or she might make. httl2s://www.juneaueml2ire.com/opinion/opinion-sales-tax-proposal-defies-logic/ Legislature rejects Marcum for UA Regents Impassioned speeches made ahead of29-31 vote. Bethany Marcum was rejected by a 29-31 vote to serve on the University of Alaska's Board of Regents during a joint session of the Alaska Legislature on Tuesday, the only nominee among dozens by Gov. Mike Dunleavy who was not confirmed. httl2s://www.juneaueml2ire.com/news/legislature-rejects-marcum-for-ua-regents/ Governor reappoints Bethany Marcum to Alaska Redistricting Board No sooner had the Alaska Legislature voted to not confirm Bethany Marcum as a regent for the University of Alaska, Gov. Mike Dunleavy turned around and reappointed her to the Alaska Redistricting Board. https:IImustreadalaska.com/governor-reappoints-bethany-marcum-to-alaska- redistricting-board/ P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 63 Conflucnee Strategics Legislature running out of time as big budget differences persist '7'm not real optimistic that we can get something done by 121 days,"House Speaker says Strategic maneuverings for the final days of the scheduled legislative session — and possibly beyond — are in full swing at the Alaska State Capitol as the Senate unveiled a new proposed budget late Thursday afternoon that includes $40 million to cover the anticipated costs of a state government shutdown starting July 1. https:://www.juneauempire.com/news/legislature-running-out-of-time-as-big-budget- differences-persist/ Alaska Senate prepares `take-it-or-leave-it'budget in attempt to finish session on time In what is likely the Alaska Legislature's final attempt to pass a state budget on time, members of the Senate Finance Committee crafted a budget"turducken" and called Thursday on the state House to prepare for a straight up-or-down vote on the proposal. httl2s://www.kinyradio.com/news/news-of-the-north/alaska-senate-prepares-take-it-or- leave-it-budget-in-attempt-to-finish-session-on-time/ Alaska Senate moves forward on spending plan with time running out to avoid a special session The bipartisan Alaska Senate majority introduced a new spending plan Thursday that combined both the operating budget and the capital budget, in a last-minute effort to pass a measure the House can approve before the legislative session ends. httl2s://www.adn.com,/politics/alaska-legislature/2023105 Ill/alaska-senate-moves- forward-on-spending=plan-with-time-running-out-to-avoid-a-special-session/ Budget,carbon credits,404 permitting and much more scheduled for Saturday floor sessions The latest from the Capitol "It's getting real" echoed throughout the Alaska State Capitol on a frenzied Friday leading into the last weekend of the session, as nearly 15 bills were heard on the House and Senate floors during the day and nearly 20 are scheduled for the first (and only) Saturday floor sessions. httl2s://www.juneaueml2ire.com/news/cal2itol-live-underwater-oil-12rices-s12ecial-session- odds-rise-and-tax-trio-oddities/ Tensions rise in House with five days left until end of regular session Tensions are escalating in the House as the end of the regular session a1proaches. The constitutional 121-day limit is Wednesday at midnight. The Senate Finance Committee served up a turducken budget yesterday- rolling the capital and supplemental... P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 64 Confluence Strategies Education funding bill heads to full Senate,with boosts to transportation and residential stipends The Senate Finance Committee has advanced a bill that would increase per-student funding for public schools. It now goes to the full Senate for a vote. On Monday, Sen. L6ki Tobin, D- Anchorage, asked the finance committee to support the bill, which would increase the base student allocation by$680 starting in July. https:[/www.ktoo.org/2023105/10/education-funding-bill-heads-to-full-senate P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 65 City Clerk Report May 22, 2023 This is my last report as the City Clerk for the City of Seward, and I wish to sincerely thank the citizens of Seward and the surrounding community for entrusting me to serve as your city clerk these past years. It has been my honor to serve you and I hope that you know that my priority and focus have always been on the citizens of Seward. I want to express my appreciation and admiration to the Seward City Council, current and past, and all the board members and commissioners, current and past, who have put themselves forward to serve this community through our local government. I believe your intentions are to serve the community as best you can and for the betterment of the people. Seward is a service-driven community like no other place I have lived and it is inspiring to live in a place where people take care of each other so readily and so selflessly. This is a special place for sure. Thank you all! Brenda 66 Seward City Code Recodification Project Legislative History Title Status Ordinance Enacted 1 General Provisions Completed 2022-010 8/22/22 2 Administration Completed 2023-002 2/13/23 3 Personnel Completed 2022-006 3/14/22 4 Elections Completed 2022-017 1/9/23 5 Revenue and Finance Completed 2023-005 3/13/23 6 Purchasing,Contracts and Introduction May 22;enactment June 12 2023-015 Professional Services 7 Public Property Completed 2023-008 4/10/2023 8 Business Regulations and Section 8.15 to Comm Den for incorporation into Title 15 Licensing (3114) 9 Health and Safety Completed 2023-010 5/8/2023 10 Public Peace,Morals and Completed 2023-011 5/8/2023 Welfare 11 Vehicles and Traffic Final draft to SPA, PW for review(3115); Title 11 will go to council in coordination with updating Title I in a standalone ordinance 12 Buildings and Construction Introduction June 12 13 Streets and Public Improvements 14 Utilities 15 Planning and Land Use Title 15 is with Comm Dev Regulations 16 Subdivisions Note: The following Titles will be coordinated so they're brought forward together: Title 8 + Title 15 Title 11 + Title 1 Respectfully submitted, Brenda J. Ballou, MMC City Clerk 67 Electric Infrastructure Update r , � ilia y. -.t� � .art• - a � -� y .;;. 7 � _ Y '_. a b 1 �� 0 kw : ,. I����, I �.4 - r Hm 1 rt -El" I i{{t x, w� v � a ,- 44 a v 1 � � 72 k:- �� SI �' �� y F M t� �I� ,�� (s'.'.. �k"I� mY ,i�.�.. 3 a� +4,.�� ..r �.- �" � A ,`8 + „�y„_....R��yam, � 3b. r �.fi �N��[E7a.V'^k't�Jl �":;�, S'"_�a.fY�+ 1. � ` }��a /�' _� �� \\ \�' ,y�4 � �� � ^A �\ +� r S � k 1 1, 75 FORT RAYMOND SUBSTATION 115 KV UPGRADE Today Fort Raymond's max Megawatt output is 20MVA through two main power transformers. Currently five main distribution breakers Town 1, Town 2, Sun Eel, Seward Fish, Grouse Lake supply 80% of Seward's electricity. NOTICE TO PROCEED AWARDED TO ELECTRIC POWER CONSTRUCTORS EPC scope of work: ✓ Remove all outdated distribution breakers; ✓Replace from 69kv rated infrastructure with 115kv rated infrastructure; ✓ Install by July 15"two new 25MVA each power transformers. ✓Replace all five distribution breakers,also add two new future breakers for potential Cruise Ship Power; ✓ Remove old substation fencing and concrete,ground and bond all new fencing; ✓Remove all substation vegetation and soil exposing ground grid repair as needed add 6"spec crushed rock; ✓Replace all control room,low voltage wiring,control panels,relay's etc.; ✓Update(SCADA)Supervisory control and data acquisition servers to reflect new system. The estimated time to finish Ft.Raymond infrastructure project is October 2023. Fort Raymond's new Megawatt output will be 50MVA after the removal of Mile 25 Lawing transformer in the summer of 2024. James Unrein 76 City of Seward,Alaska City Council Special Meeting Minutes May 8, 2023 Volume 42,Page CALL TO ORDER The May 8,2023 special meeting of the Seward City Council was called to order at 5:30 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 Liz DeMoss Mike Calhoon Randy Wells Kevin Finch Robert Barnwell comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Excused—None Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/DeMoss) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: There were no consent agenda items. NEW BUSINESS Other New Business Seward City Code, Chapter 5.22—Developer Incentive and Reimbursement Program. Bower said she wished to discuss this program and knew there would be questions, but wanted to start with an overview. Community Development Director Jason Bickling outlined the 77 City of Seward,Alaska City Council Special Meeting Minutes May 8, 2023 Volume 42,Page process for the program. First an application was submitted to the city clerk,which included a cost estimate for installing the infrastructure. Once the application was approved,one option required the city to pay all costs up front, and then an assessment would be put on each lot;when a lot sold, the developer received the assessment money at closing and paid the city back. An alternate approach was for the developer to pay the costs up front, and then submit receipts to the city for reimbursement up to 50%; this option was less feasible for developers to use because it tied up funds. Bower said the intent of this program was for a developer to apply,not individual property owners.Bickling said this program allowed the city to"play the long game"for investments;the city paid half the cost for utilities, and then after construction was completed received the property tax for the new development. Calhoon wondered if all applications in this program were handled the same way;he asked if there was a manual for standard operating procedures. In response, Bickling said each application was handled as closely to each other as possible,but there were some unique features amongst each developer.Bower said the city code defined the process and the only variants were how things were handled internally; applications were handled on a first come, first served basis. Finch pointed out that code referenced a "person" and that led to confusion because this program was not intended for individual property owners. Calhoon suggested it would be prudent to have each developer sign a subdivision agreement before council was presented with the DRP for approval. Finch wondered if requiring two quotes for cost estimates would be beneficial in mitigating overinflated estimates for infrastructure installation.Bickling said the city's engineers reviewed the cost estimates to confirm the estimates were reasonable. In response to McClure,Bower said the US Coast Guard would not fit this program to create housing for their work force because the intention of this program was to create housing for the community, not for one single entity. In response to Finch, Bower said there were currently no funds available for this program, but she had been thinking of other ways to fund this program. She said a couple years ago council approved a loan from the Motor Pool fund for the animal shelter project; she recalled the loan was approximately $900,000. The intention of that loan was to repay the loan with proceeds from the property sale to Chugachmiut. Bower said council could forgive the loan from the Motor Pool and put$300,000 into the DRP fund to keep it going. DeMoss suggested the city help individual property owners to subsidize the costs of installing infrastructure, like in the Afognak neighborhood of Forest Acres. Osenga suggested caution because there could be a property where the city already installed the infrastructure and the property owner had already incurred an assessment and just had to connect. Wells suggested defining a development as a minimum of three lots to be developed. 78 City of Seward,Alaska City Council Special Meeting Minutes May 8, 2023 Volume 42,Page Calhoon asked administration bring back an amended draft with clarified definitions. Motion (Finch/) Require two bids included in the developer's cost estimate. The motion died for lack of second. Finch noticed there was no definition for private developer under 5.22.030 and requested there be a definition be created. CITIZEN COMMENTS Jaz Odhner,inside the city,wished the city would find a way to help the property owners in the Afognak neighborhood. Eliza Woodworth,inside the city,wondered if a homeowners association(HOA)could be considered a developer; as a group,the individual property owners in Afognak neighborhood could form an HOA. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS Bower knew this program needed further refinement and said with each application received, new issues were identified. Barnwell appreciated the discussion. He was excited to hear that this program was getting attention in other communities. Wells thought an HOA was a good idea as long as all of the lots in the HOA needed to be developed. DeMoss thought the DRP program was still fairly new and the language needed to continue to be updated. She wanted to continue discussions about how the city could help individual home owners make infrastructure improvements where the city helped. Finch liked the HOA idea as well. He wanted to see more money put into the DRP fund to continue growing the housing. Calhoon was interested in seeing the next iteration for this program; Osenga echoed the comments; tonight's discussion was constructive and helpful. McClure concurred;the program was good and innovative.Improvements would continue to be made. 79 City of Seward,Alaska City Council Special Meeting Minutes May 8, 2023 Volume 42,Page ADJOURNMENT The meeting was adjourned at 6:46 p.m. Brenda J. Ballou, MMC Sue McClure City Clerk Mayor (City Seal) 80 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page CALL TO ORDER The May 8,2023 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 Liz DeMoss Mike Calhoon Randy Wells Kevin Finch Robert Barnwell comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Brooks Chandler, City Attorney Excused—None Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Karen Corrigan, inside the city,wished to speak as an individual, not as a city employee. She opposed Resolution 2023-054 to outsource the utility billing because she worried about citizens having billing questions answered. She was also concerned that Resolution 2023-052 was on consent and also was for a$3.5 million contract but there was no informative backup or contract included in the packet; only the bid request had been included,but without the appendices. She asked council to postpone approving the contract until complete information was provided to the public. Bruce Jaffa, outside the city, said the city government had been turbulent for the last five years; employee recruitment and retention were currently insufficient to operate on a professional and necessary level. Council's decision to promote the sale of the electric utility, and the need to bond, borrow, and lobby for utility maintenance and improvements, demonstrated a deficiency in planning. The harbor appeared to be the only department that generated sufficient revenue and management to stay in good shape.Jaffa said the next city administration and council needed to pay attention to critical issues that had been taken too casually;the city was underfunding critical needs while paying attention to such things as a phone call policy. Seward must offer adequate wages and benefit packages,as well as management stability in order to attract workers.While the city dreamed of projects and buildings,it was also necessary to maintain the property and personnel it already had. 81 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page The current wage study and personnel policies in tonight's packet were hardly encouraging. The fast-tracked items on the consent agenda should be tabled and brought back when there was a new manager in place. Finally, he said outsourcing jobs was counterproductive to the community; find another way to handle the billing. Brad Janorscke, outside the city, was the general manager for the Homer Electric Association(HEA); he was disappointed by the election results, but appreciated the city's support. There were no HEA employees who felt their time had been wasted in Seward;the electric industry was dynamic and evolving with new technologies. Katie Cornwell,inside the city,was executive director of the Seward Prevention Coalition (SPC) and wanted to speak about Resolution 2023-053. SPC ran a lot of programs throughout the community,and had the opportunity to address mental health concerns through grant funding. SPC had conducted a survey and found that 74% of female teenagers reported they had poor or low mental health and this was reflected in national reporting as well. These post-COVID grant funds would be used to address youth mental health issues,in collaboration with Montana State University, focused on destigmatizing youth mental health and increasing healthy activities.She appreciated the city working with SPC to bring this program to the community. Tim McDonald, inside the city,thought there were a lot of things going on in the city right now; it was important to stay on point. Seward was a small community,but it had opportunities to accomplish big things. He was disappointed that there had not been more voters who turned out for the special election; he did not vote. He was hopping mad at the city for the way the city handled communicating with him about his business last summer; he was considering suing the city. He thought things were handled strangely, rudely, and unprofessionally. Christy and Elias Jordan, outside the city, thanked council for their hard work. She appreciated that council passed the resolution to request an increase in Base Student Allocation. He recalled that today was the one-year anniversary of the Lowell Point Road landslide and he thanked the city for cleaning up the road. He hoped something like that wouldn't happen again. Lynda Paquette,outside the city,had spoken to a lot of people following the special election because she wondered why people voted against Homer Electric Association. She thought council and administration had done a lot of work to evaluate both offers to sell and the better option was chosen. The feedback she heard was that people didn't trust the judgment of council and administration about HEA. She hoped council would consider as many options as possible on how to move forward from here.Paquette encouraged council to appoint Thomas Miller for the longer term. Thomas Miller,outside the city,had applied for a seat on the Port and Commerce Advisory Board (PACAB). He thought the port was the heart of the city, and he appreciated council's consideration. Ristine Casagranda,inside the city,had done some research about Resolution 2023-054 for outsourcing the utility billing. The vendor was located in Canada and they used the same accounting software as the city. The city had conducted a forensic audit a couple years ago, and council had chosen not to do anything with the results except let customers figure out how to read their bills and 82 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page speak up if they noticed discrepancies. Casagranda knew of an Alaskan company who could perform an audit on the utility for the city to straighten out all the billing before handing it over for outsourcing. She supported outsourcing the utility billing,but she felt the previous direction council gave to administration to clean up the accounts had not been fulfilled; there were still customers being underbilled or overbilled. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Approval of Agenda and Consent Agenda Calhoon removed Resolution 2023-052 and Resolution 2033-054 from the consent agenda. Wells removed Resolution 2023-055 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the April 24,2023 City Council Special Meeting Minutes. Approval of the April 24,2023 City Council Regular Meeting Minutes. Approval of the April 27,2023 City Council Special Meeting Minutes. Resolution 2023-051, Authorizing The City Manager To Purchase A New Electric Control Panel In A Not-To-Exceed Amount Of$158,450,Including Shipping. Resolution 2023-053, Approving The Memorandum Of Agreement To Serve As A Pass- Through Agency For Seward Prevention Coalition For The State Of Alaska, Healthy & Equitable Communities Grant And Submission Of The Grant Application By Seward Prevention Coalition. Resolution 2023-056,Approving An Employment Agreement Between The City Of Seward And Kris Peck For City Clerk Services. Resolution 2023-057, Clarifying Intended Uses For The ARPA Local Government Lost Revenue Relief Program ("LGLRRP") From The Alaska Department Of Commerce, Community And Economic Development To Offset Significant Revenue Loss Due To The COVID-19 Public Health Emergency. Resolution 2023-058,Adopting Personnel Policy#2023-01: Phone Use And Recording Policy. Resolution 2023-059,Adopting Personnel Policy #2023-02: Training Expense Policy. Resolution 2023-060, Adopting Personnel Policy #2023-03: Travel, Reimbursement, And Vehicle Use Policy. 83 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page Resolution 2023-061, Adopting Personnel Policy 42023-04: Field Training Officer Premium Pay Policy. Certify the results of the May 2,2023 City of Seward SPECIAL Municipal Election. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Proclamations and Awards National Safe Boating Week Proclamation. City Manager Report. City Manager Janette Bower said she appreciated her time in Seward and thought Seward was a great community. City Clerk Report. City Clerk Brenda Ballou did not add anything to the report in the packet. City Attorney Report. City Attorney Brooks Chandler said the last month had been fairly busy;there had been a lot of personnel matters. A number of ordinances on tonight's agenda had been worked on for some time.His firm had worked on a change to the operating agreement with Providence Hospital.He had worked on an enforcement issue for community development with the intention of gaining compliance and was pleased that the majority of enforcement issues had been resolved. There had been a lawsuit filed by the city against an unlawful short term rental business. Chandler said he appreciated working with the city manager and wished her well. Other Reports and Announcements Port and Commerce Advisory Board Report by Chair Bruce Jaffa. Presentations —None PUBLIC HEARINGS Ordinances for Enactment Ordinance 2023-010,Amending Seward City Code Title 9—Health And Safety For The City Of Seward Recodification Project. This ordinance was introduced on April24, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-010 84 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page City Clerk Brenda Ballou said there was a laydown on the dais which outlined a series of suggested amendments form the city attorney for council's consideration. Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. Bruce Jaffa, outside the city, thought there was a lot of time being spent on non-pressing items; for example, the definition of dog seemed unnecessary;he thought time was being wasted. No one else appeared and the public hearing was closed. Motion to Amend (McClure/Osenga) Amend Ordinance 2023-010 by accepting all the recommended amendments in the laydown. Motion to Amend Passed Unanimous Motion to Amend (Finch/DeMoss) Amend Ordinance 2023-010 in the definition of "Firearm" by changing it to read, "Firearm means a weapon including a pistol, revolver, rifle or shotgun that can discharge a bullet or pellets." Motion to Amend Passed Unanimous Wells wanted to understand how Section 9.05.130(A)would be interpreted to justify killing a dog. In response, Chandler said the important language in this section related to the protection of life and limb or preventing a further attack. Motion to Amend (McClure/Wells) Amend Ordinance 2023-010 by striking Section 9.10.040 in its entirety. McClure thought this was a holdover from post-1964 earthquake days and was no longer necessary because the city had an established emergency operations plan in place. Motion to Amend Passed Unanimous Motion to Amend (Osenga/Wells) Amend Ordinance 2023-010 by striking 9.20.010(F)(15),"Trailers,campers,boats and other mobile equipment stored for unreasonable periods in unsheltered front yard areas, 30 days being prima facie evidence of an unreasonable period;". Chandler suggested this item was outdated. 85 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page Motion to Amend Passed Unanimous Main Motion Passed Unanimous Ordinance 2023-011, Amending Seward City Code Title 10 — Public Peace, Morals And Welfare For The City Of Seward Recodification Project.This ordinance was introduced on April 24, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-011 Ballou said this ordinance was largely developed by the police chief and city attorney and would reinstate the fireworks section, remove redundancies to state statute, and clean up some language. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald,inside the city,said regarding fireworks the city should make an exception for civil disobedience on the Fourth of July. No one else appeared and the public hearing was closed. Motion Passed Unanimous Ordinance 2023-012, Amending Seward City Code Title 3 — Personnel. This ordinance was introduced on April 24, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-012 Human Resources Manager Tammy Nickell said Title 3 contained the city's personnel code and this ordinance would codify and clarify current city practices and policies. Notice ofthe public hearing beingposted and published as required by law was noted and thepublic hearing was opened. Adam Sayler, outside the city, wanted to share his personal comments and not as a city employee. He was concerned about the proposed changes in the workers compensation section; he thought getting rid of an employee benefit was not a good practice and may contribute to having difficulty hiring and retaining employees.He believed allowing an employee six weeks of leave time for workers compensation was a tremendous benefit, and he had checked with the city's insurance provider AML/JIA and confirmed that it was not illegal for the city to provide this benefit.If the six week allowance was going to be retained in code, he suggested clarifying if the six weeks started from the date of the injury or from another event,like having a surgery. On another section, Sayler wanted to comment on the section relating to sexual harassment; it appeared the proposed changes would make it more difficult for an employee to file a sexual harassment complaint.Each person had 86 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page their own idea of what they believed to be inappropriate, and using words like "objectively severe and pervasive" would make it more difficult for an employee to address concerns. Bailey Sayler,outside the city,had concerns about the proposed timeline for implementing these changes; as well,city employees were not provided the opportunity to review the changes and the union had not been consulted. She was also concerned about the changes being proposed to the workers compensation section; allowing injured employees to have six weeks of paid time while they recovered provided the employee with continued insurance coverage and accrual of retirement. The proposed changes would require an injured employee to use their personal leave; she had been informed that the reason for this proposed change was that it would be illegal for the city to provide this coverage,but she checked with AML/JIA and had received an email from them stating it would not be illegal for the city to provide this coverage. Her third concern related to the sexual harassment section where a sexual harassment complaint had to be about something "objectively severe and pervasive." She wondered who would decide what was objectively severe and said this phrase was not recognized by the Equal Employment Opportunity Commission(EEOC). And finally, she was concerned about the proposed changes to the grievance procedures,particularly as it related to filing a grievance against the city manager because the language proposed to make the city manager the final decision maker on the grievance. She believed this created a conflict of interest and undermined the transparency and fairness of the grievance process. Considering that the city council oversaw the city manager, she thought it would be appropriate for the council to hear the grievance. No one else appeared and the public hearing was closed. DeMoss wondered why"objectively severe and pervasive"had been added to the definition of sexual harassment. In response, Chandler said the intention was to distinguish between a single, casual comment and repetitive harassment. DeMoss wondered if sexual harassment that was "objectively moderate" would be tolerated. Barnwell thought the language in the remainder of the paragraph was fairly descriptive and so he suggested adding"objectively severe and pervasive"was unnecessary. DeMoss wondered if the EEOC had a definition for sexual harassment.In response,Chandler said there was case law that had been developed at the EEOC level; he could do more research and come back to council. Motion to Amend (Barnwell/DeMoss) Amend Ordinance 2023-012 in Section 3.75.010 (A) (2) by striking the phrase "objectively severe and pervasive and is". Motion to Amend Passed Unanimous Finch noted he had concerns about some other language that was proposed to be stricken that stated complaints would be promptly and fairly investigated and that there would be no retaliation. He thought those items needed to remain in code. Motion to Amend(Finch/DeMoss) Amend Ordinance 2023-012 in Section 87 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page 3.75.010 (C) by: 1) adding "and city manager"to the end of the first sentence so that it reads, "...should report the incident(s) to the employee's supervisor and/or the human resources manager and city manager." and 2) retaining items #2 and#3 and renumbering them as#1 and#2 in subsection C. Motion to Amend Passed Unanimous Wells inquired as to whether the proposed language in the workers compensation section violated any union contract language. In response, Chandler said the union contract trumped city code for union members. Motion to Amend (McClure/Wells) Amend Ordinance 2023-012 in Section 3.20.020 (A) by striking the words "the local newspaper and" so that it reads, "...and otherwise publicize vacancies through such media including, but not be limited to,the city's website." Motion to Amend Passed Unanimous Motion to Amend (McClure/DeMoss) Amend Ordinance 2023-012 in Section 3.30.035 by striking the words "rating officer" and replacing with "department head." Motion to Amend Passed Unanimous Motion to Amend(McClure/Wells) Amend Ordinance 2023-012 by striking Section 3.30.035 in its entirety. Motion to Amend Passed Unanimous Main Motion Passed Unanimous Council recessed the meeting at 9:10 p.m. Council resumed the meeting at 9:16 p.m. Ordinance 2023-013, Enacting Seward City Code, Section 3.50.040 - Floating Holiday. This ordinance was introduced on April 24, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-013 88 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page DeMoss said this ordinance would provide for a floating holiday and was a token of appreciation more than anything because the city still needed to have larger discussions about employee wages. Osenga added he thought this would be a good thing for employees to have. Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. Bruce Jaffa, outside the city, supported the city having a floating holiday for employees. No one else appeared and the public hearing was closed. Motion Passed Unanimous Ordinance 2023-014,Amending Seward City Code,Chapter 2.30-Boards and Commissions. This ordinance was introduced on April 24, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-014 Bower said this ordinance came from the Port& Commerce Advisory Board(PACAB). Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. Bruce Jaffa, outside the city, said PACAB had spent a number of meetings discussing this topic and encouraged council to enact this ordinance. No one else appeared and the public hearing was closed. Osenga wondered why infrastructure had been added to PACAB's powers and duties. Council suspended the rules to speak with PACAB Chair Bruce Jaffa. Jaffa said city code directed PACAB to look at port and commerce issues, as well as quality of life issues. He said there was no other board or commission in the city, except for council, that looked at the issues that PACAB did. Council went back on the rules. Motion to Postpone (McClure/Osenga) Postpone Ordinance 2023-014 to May 22, 2023. McClure put the council at ease at 9:30 p.m. 89 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page McClure called the meeting back to order at 9:32 p.m. Assistant City Manager Stephen Sowell said in Section 2.30.325 (A)(3) there was reference to PACAB providing input to council on improving the quality of life and protecting the public's best interest. He added that PACAB had a very broad mandate and encompassed anything that affected the lives of Seward residents. The motion to postpone was withdrawn with no objection from council. DeMoss thanked PACAB for all their work and reminded council that the board was advisory to council so should be used as such. Motion Passed Unanimous Resolutions Requiring Public Hearing Resolution 2023-050,Amending The Harmon Developer Reimbursement Program Application From The "Reimbursement Method" To The "Assessment District Method" And Appropriating $161,565, The Other Half Of The Estimated Cost Of Improvements. Motion (Osenga/DeMoss) Approve Resolution 2023-050 Community Development Director Jason Bickling said the applicant had requested to change the reimbursement method from having the developer pay up front to having the developer reimburse the city. Notice ofthe public hearing beingposted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Calhoon wondered how this would work if there were no funds in the DRP fund. Bickling said the city would pay up front,which would cause a depletion in the DRP fund account,but would not change the city's expenditure in the end. Motion Passed Unanimous UNFINISHED BUSINESS —None NEW BUSINESS Resolutions Resolution 2023-052,Authorizing The City Manager To Enter Into A Contract With Electric Power Constructors, Inc. (EPQ In A Not-To-Exceed Amount Of$3,595,106.62 To Replace Aging Equipment And Upgrade The Voltage Capacity To 115kV At The Fort Raymond Substation. 90 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page Motion (DeMoss/Osenga) Approve Resolution 2023-052 Electric Utility Manger Rob Montgomery said this project was a complete rebuild of the Fort Raymond substation. The Request for Proposals (RFP) had been handled by the city's engineering firm. Calhoon stated that, although this project was part of the planned infrastructure improvements, there were no bond funds available to pay for this project. Montgomery concurred and said there was money available in the electric reserves account. In response to Calhoon, Bower confirmed that the resolution would have to be amended to state that the funds would come from the electric reserves fund rather than the revenue bond fund. Motion to Amend (Calhoon/DeMoss) Amend Resolution 2023-052 in Section 2 by striking the words "revenue bond" and replacing with "electric reserves" and updating the account number as appropriate. Finch wondered if there was a contract available for this resolution. Montgomery said he hadn't seen a contract yet, but the scope of work had been provided in the RFP. Calhoon wondered what the impact of postponing this resolution to the next meeting would be. In response, Montgomery said the work was set to begin in late June or early July. Motion to Amend Passed Unanimous Finch asked again what the status of the contract was. Montgomery said a contract was typically included in the RFP process;he provided the scope of work to the engineering firm and that was what he would expect to see reflected in the contract. Wells wondered if council approved this resolution, and if and when the contract was provided but didn't match the RFP, then would the city be secure. Montgomery said yes. McClure called for the vote.Ballou stated that if council voted on this resolution they would be approving a contract sight unseen; an RFP was not legally binding like a contract was. Osenga asked the city attorney to weigh in. Chandler said the bid document included in the packet referenced an appendices and one of the items was listed as"contract documents".Chandler said his feeling was that there was a contract document that was provided as an appendix during the bidding process and the bidder would most likely be compelled to sign it. Chandler could not tell council what the contract said. Wells did not want to vote without a contract,but was sensitive to the timeline.He would be willing to attend a special meeting this week in order to review the contract.DeMoss did not want to postpone to the next council meeting, but would be willing to attend a special meeting this week. 91 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page Main Motion Passed Yes: Barnwell, Osenga, Calhoon, DeMoss, McClure No: Wells,Finch Resolution 2023-054, Authorizing The City Manager To Enter Into A Contract With Util- Assist,Inc.To Outsource The City's Customer Billing Services For Electric And Water/Sewer In An Amount Not To Exceed$138,000,Including A One-Time Fee Of $36,000 To Complete Onsite Discovery, Due Diligence And Training. Motion (DeMoss/Osenga) Approve Resolution 2023-054 Montgomery said since he joined the city two and a half years ago, electric billing has been an ongoing struggle. The finance department handled the billing, and they have been unable to hire and retain a second utility desk employee. He said one of the positions had been vacant for the majority of his time with the city. In addition,he said there was limited knowledge and experience at the utility desk which has resulted in potential errors and liability for the city. Montgomery said around 2,800 accounts had not been properly maintained, resulting in the city having around $2 million in receivables for 2022,some of which were most likely uncollectable. Simply put,the work load was too much for one person; one person could not handle reading meters,managing the billing functions, and handling customer service without experiencing issues. Montgomery continued by saying there were limitations in the city's software for net metering customers. The city's Harris software was not currently capable of handling net metered customers automatically through its system. The city recently spent money to upgrade the software, but was not aware this would be an issue at the time. Since the software could not handle processing these bills,the city's finance department was handling the bills for approximately 30 net metering customers manually using Excel. He said two months ago,there was no one in the city who could process the billing,so they brought back a former city employee to help out temporarily,but this was not a long term solution. The finance department had been working on finding a vendor who would be capable of managing the billing moving forward;the chosen firm offered the most experience and capabilities,and also worked in the Harris software platform.Montgomery said this was important to note because it would ease the transition back to the city should the relationship with the vendor not work out. Outsourcing the billing would reduce the utility desk head count by one position,resulting in savings of$85,000 per year including benefits, which nearly offset the vendor cost of$102,000 per year. Osenga wondered if the platform was perhaps not the right one to use, particularly to accommodate net metering; he wondered if the system should be changed. Deputy Finance Director Sully Jusino said the city's current vendor could provide net metering services,but it was an add-on service. Montgomery said the Harris software worked fine, it was the 30 net metering customers that could not get the software to work for; Harris could not make it work, and so the finance department had to process it manually. Osenga responded to say if the city was going to stand on its own for utility billing, it sounded like a different platform would be required. DeMoss thought the utility employee position could not be filled due to the complexity of the system; she was not confident that the city's billing system was in good shape and was concerned 92 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page that an out-of-country vendor would be able to adequately help the customers in Seward.There were still customers in Seward being billed incorrectly, and the utility desk employee would still have to take the heat from customers even though the billing would be handled elsewhere. She had expressed concerns about the city's billing system since before she got on council; she wondered how the vendor would be able to correct accounts that were incorrectly classified and therefore being billed incorrectly. Montgomery said it was the responsibility of the city to conduct annual audits on customer accounts to verify the accuracy of the classifications; the electric department had conducted an audit and discovered about 12 accounts that were reclassified and corrected. Wells said until or unless a local person applied to fill the vacant utility counter position,he would support outsourcing the billing. Motion Passed Yes: Calhoon, Barnwell, Wells, DeMoss, Osenga, McClure No: Finch Resolution 2023-055,Adopting The 2023 And 2024 Pay Plans. Motion (Osenga/DeMoss) Approve Resolution 2023-055 Bower said this resolution would add longevity steps for long-term employees. Motion Passed Unanimous Other New Business Appoint Thomas Miller to the Port& Commerce Advisory Board with a term to expire July, 2023 OR July, 2026. Motion (McClure/Osenga) Appoint Thomas Miller to the Port and Commerce Advisory Board with a term to expire July,2026. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS —None CITIZEN COMMENTS Tim McDonald, inside the city,was concerned that a$3.5 million contract resolution was approved without a contract; he thought that was a lot of money to spend without looking at a contract.He wanted to explain what happened last year with his business;he was upset with how the city approached his campground business last year which was unique in that the city boundary dissected his property. He had received a series of notices from the city that included a demand for back taxes, among other concerns. No one had called him to discuss the city's concerns; as a result, he felt like fighting the city all the way. 93 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page Bruce Jaffa, outside the city, thanked council for their attention to the details. He was encouraged when council had discussions of varying perspectives; he believed healthy discussions were good because there shouldn't always be a consensus among council members. He thought the electric utility manager had done a lot of good for the city during his tenure; although, he did not support outsourcing. He did not believe a position like the utility desk was necessary to be outsourced;the problem was employee attraction. He wondered why the city didn't pay more for the position in order to attract applicants; offering employees good pay and hope for a future was critical. Outsourcing the utility position made no sense to him. Ristine Casagranda, inside the city, said the electric funds being reported in the various electric resolutions did not jive. The city was in desperate need for a finance director; it was time to get creative to find one. She said council voted to approve a$3.5 million contract tonight without a contract; she hoped that someone on council would bring that resolution back for reconsideration so that the citizens could see what that contract said. She also concurred with the previous speaker that having a variety of perspectives on council was a good thing.When all of council voted unanimously on items,it sent a message that there was no room for argument because all of council was a united front,everyone was on the same page,and council was a force to be reckoned with;it felt a little like a dictatorship. She suggested council put the loss of the election behind them and move forward with making good choices. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Bower thanked council. Finch thanked the US Coast Guard and Auxiliary for their work and service. He was surprised to hear the landslide was one year ago. He wanted to keep momentum on the DRP program. Barnwell thought the DRP program was exciting. Calhoon said sometimes things happened at the dais and not everyone understood why; some decisions that were made were done for a reason,and over time people would understand. He said the contract would be looked at and the public shouldn't worry about it. He wished the city manager success. He agreed that hiring a finance director was of critical importance. DeMoss thanked the Seward Prevention Coalition for the work they did. She thanked HEA for their time and effort in Seward. Osenga welcomed the newest PACAB member.He listened to everyone and made decisions the best he could. McClure said council members held many different opinions and had healthy discussions. She was proud of the work council accomplished tonight. She participated in Super Saturday Clean Up this weekend and had collected five bags of trash. 94 City of Seward,Alaska City Council Meeting Minutes May 8, 2023 Volume 42, Page ADJOURNMENT The meeting was adjourned at 10:52 p.m. Brenda J. Ballou, MMC Sue McClure City Clerk Mayor (City Seal) 95 • swir- Ordinance 2023-015 : An Ordinance of the Seward City Council, Amending Seward City Code Title 6 Purchasing, Contracts and Professional Services Documents: • Agenda Statement • Ordinance 2023-015 96 City Council Agenda Statement Meeting Date: May 22, 2023 To: City Council From: Norm Regis, Acting City Manager Crystal Miner, Carmen Jackson CPA MC Pehle, Carmen Jackson CPA Sully Jusino, Deputy Finance Director Agenda Item: Ordinance 2023-015: Amending Seward City Code Title 6 Purchasing, Contracts and Professional Services Background and justification: As part of the original city recodification project, this ordinance is brought to council to update Seward City Code Title 6. Title 6 is dedicated to Purchasing, Contracts and Professional Services. The entire title has been examined and nearly every portion of the content has been updated. Amended Ordinance code section Page # Amendment Further defines the purpose of the title and adds assurance language 6.01.010 1 regarding the city's purchasing actions and demonstration of open and transparent public processes. 6.01.015 2 References the entire Title as opposed to one section. 6.01.025 2 Further defines documentation of the purchasing processes. Note: some portions of the section have been moved to 6.01.026. 6.01.026 3 New section regarding the finance director and city managers authority. Note: some portions of the section were previously in 6.01.025. 6.01.030 3 New section providing the authority to use city credit cards. 6.01.035 3 Grammatical and bulleting updates. 6.01.040 3 Grammatical updates. 6.01.050 4 Grammatical and bulleting updates. 6.01.060 4 New section addressing business license requirements. Note: some of the language was in 6.05.020. 6.01.070 5 New section for definitions. Note: some of the language was previously in 6.05.15. 6.05.005 6 Minor purchases of less than $5,000 was moved from 6.05.020 to its own section. Note: the previous minor purchase amount was $1,000. 6.05.010 These sections have repealed and moved to 6.01.060, 6.05.005, 6.05.025, 6.05.015 6 and 6.05.030. 6.05.020 6.05.025 7 Intermediate purchases($5,000 -$30,000)was moved from 6.05.010 and 6.05.020 to its own section. 6.05.030 7 Major purchases over $30,000 was moved to its own section. Article 1 7 The term Article 1 has been struck. Use of chapters as found in other areas of code is being used in its place. 6.10.010 7 New section — language was previously in 6.10.220. 6.10.020 8 New section regarding exemptions from competitive procurement procedures. Note: most of the language was previously in 6.10.115. 6.10.030 8 Renumbered from 6.10.120. The language has been updated to reflect the exemptions forspecialized products and professional services. 6.10.040 9 Renumbered from 36.10.125 97 6.10.050 9 Renumbered from 6.10.130. The updated language requires the city to make written findings to the city council. 6.10.060 9 New section and language regarding sole-source procurement. 6.10.070 10 Renumbered from 6.10.135 and additional regarding bidders being prohibited from receiving federal funds. 6.10.080 10 Renumbered from 6.10.140 and updated bulleting added. 6.10.090 11 Renumbered from 6.10.145 and grammatical amendments made. Article 2 11 The term Article 2 has been struck. Use of chapters as found in other areas of code is being used in its place. 6.20.010 11 Renumbered from 6.10.210. Note: the increased amount for cost of goods and services. 6.20.020 11 Renumbered from 6.10.020. Additional information has been added regarding the public notice. 6.20.030 11 New section regarding bid packets. 6.10.220 former 11 This section has been struck. The language was moved to 6.10.020. 6.20.040 12 Renumbered from 6.20.225. 6.20.050 12 New section regarding ublic opening of bids. 6.20.060 12 Renumbered from 6.10.230. Clarifying language regarding bid awards. 6.20.070 12 Renumbered from 6.10.235. Article 3 12 The term Article 3 has been struck. Use of chapters as found in other areas of code is being used in its place. 6.10.310 former 13 Removes language regarding the alternate procurement procedures. 6.30.010 13 Renumbered from 6.10.315. the language provides the proposal process. 6.30.020 13 Renumbered from 6.10.320. 6.30.040 13 Renumbered from 6.10.325. The language speaks the packets content for proposals and points back to the fiscal policy. 6.30.050 13 New section regarding the response to requests for proposals. 6.30.060 14 Renumbered from 6.10.330. The language provides for the criteria for public opening of proposals. 6.30.070 14 Renumbered from 6.10.335. 6.30.080 14 Renumbered from 6.10.340. 6.10.345 former 14 The language has been struck because it a process that is no longer used. 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: $ ✓ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted ✓ Not applicable 98 Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review ✓ Yes Attorney Signature: Not applicable Comments: Administration Recommendation e✓ Adopt ordinance Other: 99 Sponsored by: Regis CITY OF SEWARD,ALASKA ORDINANCE 2023-015 An Ordinance of the Seward City Council,Amending Seward City Code Title 6 Purchasing, Contracts and Professional Services WHEREAS,this ordinance updates Title 6 with the most current financial practices; and WHEREAS,in May 2020, Seward City Council approved Resolution 2020-040 to review, update, and recodify Seward City Code; WHEREAS,there are 16 Titles contained in the Seward City Code; and WHEREAS, due to the sheer volume of material to be received, it is more efficient and reasonable to provide the changes in smaller, more manageable portions for consideration; and WHEREAS, to that end, this ordinance is focused specifically on Title 6 - Purchasing, Contracts and Professional Services. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Title 6 is amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): TITLE 6 -PURCHASING, CONTRACTS AND PROFESSIONAL SERVICES Chapter 6.01 General Provisions. 6.01.010 Purpose. The purpose of this title is to: A. 4-Maximize the purchasing value of public funds in the procurement of goods and services for the city; B. Ensure that supplies, materials, services, and construction are procured efficiently, effectively, and at the most favorable prices available n,-^vide an effieie t systeri, feF toe without creating unreasonable administrative burdens and restrictions; C. -3- Provide flexibility ' geeds afid sef-viees and safeg-uards for maintaininz a procurement system of quality and integrity in order to meet the goals and objectives of the city as determined by the city council; D. 4 Provide for the fair and equitable treatment of all persons or organizations involved in the provision of goods and services to the city; e+d E. -S,Prevent collusion and anti-competitive practices by the providers of goods and services, F. Ensure that the city's purchasin-actions are in compliance with applicable state and federal standards, re-ulations and tribal laws; and 100 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 G. Demonstrate open and transparent processes to the public. 6.01.015 Interpretation. This title is to be interpreted and applied in order to further the objectives stated in this title. above. 6.01.020 Compliance with grant conditions. When a procurement involves the expenditure of state or federal grant, assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory local, state, or federal law and regulation. Nothing in this Code shall prevent the city from complying with the terms and conditions of any grant, gift or bequest which is otherwise consistent with law. 6.01.025 . Documentation of Purchase Process. A. Every undertaking of the city involving the expenditure of city money, no matter the amount, shall be in writing in the form of a purchase order, check request, credit card, electronic communication, travel voucher or of a contract, as may be appropriate, and re effieer er B. No officer or employee of the city shall have authority to enter into any oral a,-reement involvinz the expenditure of money. C. Separate purchase orders shall not be issued for the purpose of circumventinz the requirements and limitations of this title. The e4y m „ her-ize ^ depa-tmen eentFaetttal sen,iees tinder- wr-itten pr-eee"r-es not less r-estFietive tha* these Pr-es e�fi 18:�-d 114-41 d e,f D. References in this title to matters required to be in "writing"or to be "written"may include electronic communication unless procedures are otherwise prescribed. 6-4:�-. E. References in this title to matters required to be in "writing" or to be "written" may include electronic communication unless procedures are otherwise prescribed;p- vide,a,however-,t4a+ Ghapto,-ti 10. 6.01.026 Authority. 101 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. The finance director's, or desi,-needs, written approval of expenditures certifies that each expenditure has been properly authorized and that funds have been lawfully appropriated for that purchase throu,-h approved city budzet. B. The city manazer or desi,-nee and city clerk or desi'-nee shall si'-n all contracts on behalf of the city. C. The city manazer may authorize any department of the city to purchase directly certain specified supplies, materials, equipment or contractual services under written procedures not less restrictive than those prescribed under this title. D. The city manazer shall have the authority to and shall establish the administrative procedures and provide for other matters which may be necessary to carry out the provisions of this title. E. The city manazer is authorized to issue an invitation to bid if the procedure will best serve the needs of the city and accomplish the obiectives of this title. F. The city manazer is hereby authorized to issue a request for proposals of the city and accomplish the objectives of this title. G. The city manazer my reiect any or all quotations and may waive minor irre-ularities in the quotations. 6.01.030 Repealed by Ord. 2003 City credit card. The city may use credit cards or purchase cards to purchase items followin'- the processes outlined in this chapter. 6.01.035 Inspection of work, materials, etc.,prior to payment. A. Prior to 0+e making e€partial or final payments on contracts,the city manager or designee shall certify thftt the conditions of the contract for which payment is beinL made have been complied with. 1. In the case of partial payments, the payments shall be made on estimates of the amount and value of work accomplished. 2. The certificates of estimate shall include the amount and value of the work accomplished and the materials used since any preceding estimate. 3. Sw4 The certificates of estimates shall further indicate that if a greater proportion of the contract has been performed by the contracting parry than that which is represented by the request for partial payment, the request only shall be paid, in addition to any preceding partial payments. 4. The finance director may authorize payment upon receiving the invoices properly certified, and evidence of compliance with any other applicable requirements. B. The responsibility for the inspection and acceptance of all materials, supplies and equipment shall rest with the department eon head concerned. 6.01.040 Payment of claims. A. The city finance director shall pay claims for which appropriations have previously been made, when the claim was incurred by purchase order as otherwise herein provided, or by agreement approved by the city council. B. The finance director shall require invoices to be submitted to the finance director or designee by the vendors, and that the head of the department of of the city concerned shall 102 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 submit to the finance director or designee confirmation that the goods or services for which the purchase order and invoices are rendered have been delivered in the manner, quantity and quality specified,prior to the issuance of the city's payment thereof. C. Claims for transportation expenses and allowances submitted in connection with traveling on official business will be allowed by the finance director only when &tleh the expenses have been approved in advance by the city manager or designee and are submitted on property forms provided by the city and certified by claimant. 6.01.050 Contractor delinquency in certain payments. A. The city shall not award a contract or purchase order to any person who then is delinquent in paying: 1. (i)Any tax levied by the city or the Kenai Peninsula Borough, 2. (4)Any special assessment levied by the city, 3. (i4)Any charge for city utility or harbor services, or 4. { }Any city business license fee, unless the person cures the delinquency within ten 10 days after the mailing of written notice thereof. B. The city may terminate any contract or purchase order if the contractor becomes delinquent in payment of any of the items listed in subsection A. of this section, unless the contractor cures the delinquency within ten days after mailing of written notice thereof. C. The city may deduct from any amount due the contractor under any contract or purchase order an amount equal to the total of all delinquent amounts that the contractor owes for: L (0 Taxes levied by the city or the Kenai Peninsula Borough, 2. (ice) Special assessments levied by the city, 3. (4}Charges for city utility or harbor services, and 4. 0-v)The city business license fee. D. Subsections B. and C. of this section shall be deemed to be incorporated in every city contract and purchase order that is executed after-the e ffeetive date of this seeti ,,, E. Nothing in this section shall prevent any person from paying under protest any tax, special assessment, utility or harbor charge, or business license fee, or pursuing appropriate judicial or administrative action to contest or recover any stxk the tax, assessment, charge or fee. 6.01.060 Business license required. A. All contractors or persons conductinz work for, or providinz professional services to or on behalf of, the city shall obtain a city business license prior to conductinz any work or providinz any services. B. A valid city business license shall be required to be maintained for the life of the contract or agreement between the city and the contractor or provider. C. To obtain a city business license, a current state business license and valid Kenai Peninsula Borough sales tax account is required. D. Accordinz to Municipal Code 8.30.020, an exemption to this requirement is made for government and zovernmental services. 6.01.070 Definitions. Bid. Offer of a specific price to secure commodities, capital equipment or construction work. 103 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 Intermediate purchase. Those purchase orders or contracts for labor, services, materials, or other valuable considerations between S5,000 - S30,000 for any one item, or any passenger vehicle purchase. Maior purchase. Those purchase orders or contracts for labor, services, materials, or other valuable considerations which exceed S30,000 for any one item, or any passenger vehicle purchase and require competitive bids or proposals. Minor purchase. Those purchases of labor, services, materials or other valuable considerations which do not exceed S5,000 for any one item. Open market purchasing. Procurinz zoods and/or services without formal advertisin,- or formal bid procedures, usually in small quantities or in an emergency.Shall be based on at least three quotations. Open purchase order.A city-wide purchase order approved by the finance director and city manazer each fiscal year.Allows city employees to purchase items as needed for under$1,000. Purchases must still be approved by department head. Passenzer vehicle.Any vehicle that is primarily intended for the carriaze of passen,-ers and does not meet the requirements of Alaska Statute definition of"commercial motor vehicle." Professional services. Those services that require special knowledze and iud'-ment that includes analysis, evaluation,prediction,plannin,-or recommendations and which result in the Production of a report or the completion of a task. Proposal. A formal plan or suzzestion put forward for consideration or discussion. Used Primarily to secure services or combination of products and services (Example: professional services). Purchase order. Document completed by purchaser that includes all relevant details of the purchase and approval of the purchase by department head, finance director, and city manager as appropriate. Ouotations.A detailed record shall be made of the quotations received and shall include the firm's name,person contacted, detailed description of materials or services, and price. Prices in published mail order catalo,-s or internet web sites may be considered to be written quotations. Records.A record of all purchases and the quotations submitted to the City shall be kept and the records shall be public. Requisition.Document completed by potential purchaser prior to purchase, that includes all relevant details of purchase and quotations and is submitted for approval by department head, finance director and city manager as appropriate. Solicitation. Written quotations may be solicited by telephone, in person or in writing from interested persons or firms. Sole source. When only one vendor, to the best of the requestor's knowled'-e and belief based upon documented research, is capable of providin,-the required,-ood or service. This may occur when goods or services are specialized or unique in character. Written iustification is required. Time and material contract.A contract whose cost is the sum of a. The actual cost of materials; and b. Direct labor hours charmed at fixed hourly rates that reflect wajzes, jzeneral and administrative expenses, and profit. Value enzineerinz A systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost. 104 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 Chapter 6.05 lneidental Minor, Intermediate, and Maio r Purchases 6.05.005 Minor purchases less than $5,000. A. All purchases for an amount estimated to be$5,000 or less shall be made on the open market with such competition as is reasonable and practical in the circumstances. B. Such open market purchases, whenever practicable, shall be based on at least three quotations and shall be awarded to the lowest qualified quotation. C. Purchases over$5,000 require a requisition authorized by the department head and finance director before purchase is made. > , f b•.a s. ate r r B. Otfetatieos. A detailed f:eeef:d shall be made ef Olie ----ived alid shall iffeltide t 6.05.020. Minot:r f:eh se r edtt (a) All -pto:ehases fef:ao amettot estimated te be S 1,000.00 $5,000.00 ef:less shall be made eo �he . , shall be made when feasible and when in �he -Pfaetieable, Shall be based OR at least �hfee ld Shall be aWaf:ded tE) t established by law. 105 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 behalf of-,the eit�' shall obtain a eit�'bttsifiess lieefise Pf:i0f:to eafidttetifig afty w0f:k of:pf:avidifig (d) A valid eit�, bttsiness lieense shall be re"if:ed to be maintained f�af:the life of the eefitfaet Of: 6.05.025Intermediate purchases ($5,000- $30,000). A. The city manazer is hereby authorized to bind the city by purchase order or contract without advertisin,-or previous action by the city council for the payment of labor,services, materials or other valuable considerations, in amounts not exceedin'- $30,000.00 in any one item provided, that: 1. Reasonable efforts have been made to provide the city with the lowest and best prices obtainable, and 2. Provided that the city manazer shall notify the city council at its next re,-ular meetin,-of any purchase order or contract between $5,000.00 and$30,000.00. B. Those efforts may include, but are not limited to, the written quotations or advertisin,- for sealed bids. 6.05.030 Maior purchases (over$30,000). When the cost of-oods or services required by the city exceeds the sum of$30,000 the city mans,-er shall seek and preserve a competitive environment by utilizin,--competitive bids or proposals as set forth in this title, unless otherwise exempt. Chapter 6.10 General Procurement Procedures. 6.10.110. n fiHit oH. 6.10.010 Bid and proposal security-financial. A. All bids or proposals for contracts estimated at $100,000 or more, or when otherwise required by a request for bids or proposals, must be accompanied by a certificate of deposit, or certified check or draft, or a cashier's check or a draft on some responsible bank in the United States, in favor of and payable at the site to the city, for an amount equal to five Percent of the bid, the deposit shall not exceed$50,000. B. If the bidder or proposer to whom the contract is awarded shall, for 15 days after the award, fails or ne-lects to enter into a contract and file any required payment or performance bond, the city manazer shall draw the money due on the certificate of deposit or check or draft, and pay the same into the treasury, and under no circumstances shall it be returned to the defaultin,-bidder. 106 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 C. In lieu of the forezoin,-, any bid may be accompanied by a surety bond, equal to the amount stated in this section, furnished by a surety authorized to do a surety business in the state, zuaranteein,- the bidder will enter into a contract and file the required bond within the required period D. Without limitin,-the fore,-oin,-, no plea or defense of mistake by a bidder or proposer shall be available in any action by the city for the recovery of any deposit, or in any action on any surety bond or as a defense to any action based upon any refusal to execute a contract. 6.10.020 Exemptions from competitive procurement procedures. A. The provisions of this title requiring competitive procurement procedures need not apply to the types of services and/or contracts set forth in this chapter; and the city council shall approve these contracts. B. Any purchases made utilizing an exemption in this title will have documented justification. C. The city manazer will disclose if an exemption to the procurement process was used and the reasonin,-behind the utilization of the exemption when reguestin'-city council approval for purchase as required by this title. D. Exemptions listed in this title may only be used if not restricted by federal, state, or local re-ulations. 6.10.0308 Exemptions for specialized products and professional services. A. Exceptions for specialized products and professional services include: Rest+ etieos ao I. Purchase of supplies, materials, equipment or contractual services from another unit of -overnment at a price determined by the city mans,-er to be below that obtainable from private vendors, including government surplus. 2. Purchase of contractual services from a public utility corporation at a price or rate determined by state or other-overnment authority. 3. Purchase of professional services. pr-oee"r-es for- .-6eet;.,g a to bid et „a , § ti 1 n 140ttar-easonable;-Examples of Professional services include accountin,-, architectural, appraisal, en,-ineerin,-, land surveyin,-, financial consultation, le,-al services, lobbyin,-, plannin,-, economic analysis, computer pro,-rammin,- and system analysis, insurance consultation and risk analysis, and other specialized services. 4. ; Purchase of electronic data processing software and hardware systems and communications equipment; and 5tp. igknEkc _ttflifeefreaw competitive procurement procedures have been followed, but no bids, quotations or proposals are received In such case, the city mans,-er may proceed to have the services performed or the supplies purchased without further competitive biddin,- or quotation. 6. ; 107 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 7. 8. 9. 10. B. The city may utilize competitive bids obtained by other governmental units. 6.10.040 .Exemption for purchase of used equipment. Restrictions and provisions of this title shall not apply where the city council determines that the public interest would be best served by the purchase of used equipment and, b, , -es 1„A;,,.,, authorizes the city manager to locate and purchase a particular type and quantity of used equipment. 6.10.0504-38 Exemption when competitive bid/proposals not in public interest. Restrictions and provisions of this title shall not apply where the city mans,-er e0ttfleikdetermines and makes written findings to the city council that the public interest would be best served by not requiring competitive bids/proposals. The best interest determination may be based upon, but is not limited to, a finding that the services or articles can be procured at a lower cost without competitive bidding. 6.10.060 Exemption when sole-source. Sole-source procurement may occur in the followinz circumstances: A. Based on documented research, the -ood or service is only available from one source. B. Where a public exi,-envy or emergency makes the delay in purchase due to competitive solicitation and selection unreasonable. C. When the Federal awardin,- a,-envy or pass-throe'-h entity expressly authorizes a noncompetitive procurement in response to a written request from the city. D. Purchase of a patented articles. E. Products or services that support existin,- software or data exchan,-e between public or private a,-encies or are required for compatibility to existin'-equipment. F. When competitive procurement procedures have been followed, but a limited number or no bids, quotations, or proposals are received 108 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 6.10.0704-3-5-Award only to responsible bidder/proposer. A. A contract awarded under this chapter shall be made only to a responsible bidder/proposer. B. Prior to the city issuing a notice to proceed, the successful bidder/proposer shall: 1. Provide evidence of a valid city business license. All eent,-.,,.tefs Or rorSE)HS ,.,,,,,a, eti . ,a 2. Be reviewed by the city to ensure the bidder/proposer is not listed as prohibited for receivinz federal funds on the Excluded Parties List System within the System for Award Manazement. Per Federal Re-ulation 45 CFR 75.335. C. The city manager may report to the city council and recommend rejection of a bid or a proposal on the basis of the following criteria: 1. The skill and experience demonstrated by the bidder/proposer in performing contracts of a similar nature; 2. The bidder's/proposer's record for honesty and integrity; 3. The bidder's history with any prior litigation or threatened litigation; 4. The bidder's/proposer's capacity to perform in terms of facilities,personnel and financing; 5. The previous and existing compliance by the bidder/proposer with laws and ordinances relating to the contract; 6. The number and scope of conditions attached to the bid/proposal; 7. The bidder's/proposer's past performance under city contracts, including failure to timely complete a contract for the amount stated in its bid or proposal including city requested change orders. If the bidder/proposer has failed in any material way to perform its obligations under any contract with the city, the bidder/proposer may be deemed a non- responsible bidder/proposer. 6.10.080-140 Not responsible bidder/proposer finding. A report that the low bidder/proposer is not responsible shall delay the award of the contract until after completion of the procedures outlined below: A. 4- If the city manager or designee reports to the city council that the lowest bidder is not responsible, notice shall immediately be sent to the next two lowest bidders or the next two most preferred proposers and the report shall be placed on the agenda of the next scheduled council meeting; provided, that the next council meeting allows two weeks' written notice to the lowest bidder and the next two lowest bidders or most preferred and next two most preferred proposers. B. -2- At the council meeting, the lowest bidder or most preferred proposer and the city manager or designee shall have the opportunity to be heard regarding the adverse report. C. -3-The city council shall then determine whether it is in the best interest of the public to affirm, reject, or modify the city manager's report and in so doing make written findings to support its determination. The written findings shall be based on, but not limited to, the criteria set out in this chapter. 6.10.09045 Where Nnding Insufficient undin . 109 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. If the lowest responsive and responsible bid or proposal exceeds the amount of funds available for the procurement, the scope of the procurement may be reduced to bring its estimated cost within the amount of available funds. B. The city shall issue a new invitation for bids or requests for proposals for the reduced procurement, or,upon a finding by the city manager that the procurement is in the best interests of the city and upon notice to the city council ' the city managger may negotiate with the three lowest responsive and responsible bidders or the three most responsive and responsible proposers in succession, beginning with the lowest bid or most responsive proposal, and may recommend the city council award the reduced contract. Chapter 6.20 Competitive Bids. 6.4720.2010 Use of competitive bids. When the cost of goods or services required by the city exceeds the sum of$30,900.00 $100,000 the city managger shall seek and preserve a competitive environment by utilizing th-e-competitive bids process as set forth in this chapter idle, unless otherwise exempt. 6.4720.020 Invitations to bid—Public notice. A. The city manager or designee shall call for bids by advertising at least once in a newspaper of general circulation not less than two weeks prior to the date set for receiving bids. B. The public notice shall include: 1. Instructions on how to obtain a bid package; 2. The process for eosin,-questions and obtainin'-responses to questions; 3. The deadline for submittin-a bid response; 4. Instructions for how and where to submit bid response; and, 5. The time, date, and location of the public bid opening. 6.20.030 Bid packets. Bid packets shall be comprised of appropriate documents and notices as indicated throu'-h city fiscal policies. eheek or draft, or a eashier!s eheek or a draft on serae responsible ba*k in t4e United Sta4es, in deposit not to exeeed $50,000.00. if the bidder to whera t4e eentfaet is awarded shall, for 15- da-ys after- stieh award, fail er-*egleet te e*ter- i*te a ee*tfaet a*d file a*y r-eqttired pa-yrne*t ef 110 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 limiting the f4egaing,He plea or defense of mistake by a biddef:shall be M'ailable in any aetion t any etio., based, anyof is i t o „te a .,t,ae_t 6.4720.040245 Bid€err»responses. All bid responses shall be placed in a sealed envelope, clearly marked as to the purpose of the submission, and delivered to the city clerk_ byz him, in'� pzim-c^circzric-time and-plaee designatedQcrc 6.20.050 Public openin-of bids. A. The city mans,-er or desi,-nee shall open the bid responses in public, at the time and place desi,-nated in the public notice invitin-bids and shall. 1. Announce the name of each responder and verify the response was received in a timely manner; 2. Open the sealed envelope(s) and announce the bid amount(s); and 3. State the apparent low bidder, subiect to thorou'-h examination. B. The city clerk or desi,-nee shall attend, witness, and record all public bid openin'-s. 6.4720.0602-38 Bid award. A. The city council may reiect all submitted bids,parts of bids, or all of a bid and may waive minor irre-ularities in the bids when public interest will be best served by loin'-so. B. The city council may award the contract The ^ n tf et shall al be let by *he e t , eattneil to the lowest qualified responsive and responsible bidder as defined in this title. 1. Provided that if the lowest bids are approximately equal, that is within the lesser of $5,000.00 or five percent of each other, preference may be given to local bidders who maintain and operate businesses within the boundaries of the city, toe Seward el eetfiea 2. Local preference will be applied to the bid process except when specifically excluded within invitation to bid, or by funding source for project. e-ei 6.4720.0702-3-5 Return of bids. The city manager shall return to the apparent unsuccessful bidders their certificates of deposit, drafts or checks; provided, however, that the manager may retain the certificate of deposit, check or draft of the three apparent low bidders until after award and signing of the contract. Chapter 6.30 Competitive Proposals. 111 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. Notwithstanding the r-e"ir-emeats of � 6.10.210 et . , a depaftmeat or- division head fp'a�' best seB'e the needs of t4e eit�' and aeeafflplish the objeetives of this title. The eatmeil meeting. 6.4730.012315 Competitive sealed proposals.Proposals. A. The city may utilize requests for sealed,.ampet4ti e proposals for goods and services,including design/build services. B. When the cost of,-oods or services required by the city exceeds the sum of$100,000 the city manazer shall seek and preserve a competitive environment by utilizin'- proposals as set forth in this chapter, unless otherwise exempt. C. The city manazer shall notify the city council of the decision to use competitive proposals and the reasons for the decision at the next re-ularly scheduled city council meetin-. 6.4730.0-320 Notiee.Requests for proposals-public notice. Notice of requests for proposals shall be given in accordance with this title § 6.10-215 and the city may use additional means considered appropriate to notify prospective proposers of the intent to enter into a contract through competitive sealed proposals. 6.4730.0403,15 Request for proposals-packet content. Requests for proposals shall be comprised of appropriate documents and notices as indicated throe,-h city fiscal policies. UL!�—x- r-e"est for- eam-Petitive sealed pf-a-Posals Hittst e0fitain the date, time and -Plaee ififeffflatieft as may be Fe"ested by the eit�'. 6.30.050 Response to requests for proposals. All proposals shall be placed in a sealed envelope, clearly marked as to the purpose of the submission, and delivered to the city clerk. 6.4730.-3-3060 Public opening of proposals. 112 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. The city manazer or desi,-nee, in public, shall open and announce the name of each responder and verify the response was received in a timely manner. B. The city shall epees score the proposals in private so as to avoid disclosure of contents to a competing proposer during the process of negotiation. C. A register of proposals containing the name and address of each proposer shall be prepared. The register and the proposals themselves are open for public inspection only after a notice of intent to award has been issued by the city. D. To the extent that the proposer designates and the city attorney concurs,trade secrets and other proprietary data contained in the proposal documents are confidential. E. The city clerk or designee shall attend and record all proposal openin'-s. 6.4730.0703M Discussions with proposers. A. Following review and evaluation of the proposals, the city may prepare a short list of the proposals which most nearly meet the requirements set forth in the request for proposals. The city may then request supplemental information or enter into discussions with the proposers listed therein for the purpose of clarification to asstffe ensure full understanding of, and responsiveness to, the solicitation requirements. B. Upon receipt of additional or clarifying information,the short-listed proposers shall be ranked and negotiations may be initiated with the first-ranked proposer. If an agreement cannot be reached, that proposer shall be dropped from the list and negotiations initiated with the next- ranked proposer. C. These proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and before final negotiation of the contract for the purpose of obtaining best and final offers. In conducting discussions, the city may not disclose information derived from proposals submitted by competing proposers. 6.4730.080340 "-_,.,..a of nt-ae .Notice of intent to award. A. The city manager shall make a written recommendation for award to the responsible and responsive proposer whose proposal is determined to be the most advantageous to the city, taking into consideration the price and the evaluation factors set out in the request for proposals. Other factors and criteria may not be used in the evaluation. B. The city manager or designee shall issue a CITY OF SEWARD, ALASKA notice of recommendation to award to all responding proponents prior to approval by the final decision- making authority. C. The contract shall be let by the city council to the most qualified responsive and responsible proposer. D. The city council may reject any or all proposals and may waive minor irregularities in the proposals. 113 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 shall desefibe the task(s) to be-Pef:f�qf:ffled' the . .alifieatiaas of firms to be seleel—ed, al+d the same faetaf:s as listed at § 6.10.135 for dete.....4.4.t, --spefisible bidder-. F'if:ms will be either- shall appf:ave the pf:e"alifieatiaa list by Requests for bids of:pf:apasals will be saliei Section 2. This ordinance shall take effect 10 days after adoption. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, the 81h day of May, 2023. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda Ballou, MMC City Clerk (City Seal) 114 • swir- Resolution 2023-063 : Authorizing Signatures For All City Bank Accounts And Rescinding All Previous Resolutions In Conflict Herewith Documents: • Agenda Statement • Resolution 2023-063 • Resolution 2021-034 115 City Council Agenda Statement a Meeting Date: May 22, 2023 t! To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-063: Authorizing Signatures for All City Bank Accounts and Rescinding All Previous Resolutions in Conflict Herewith Background and justification: The Seward City Council is required to pass a resolution listing the individuals authorized to invest monies and/or sign banking documents on behalf of the City of Seward. The recent onboarding of new Acting City Manager and the new City Clerk provides the need to update this authorization. This action forms the basis upon which signature cards will be updated at the local banking institutions, and checks and City payments and investments will be authorized on behalf of the City. While each individual listed on the resolution is authorized to act on behalf of the City, the City's practice is to have two separate individuals authorize every investment, approve all City payments, and authorize all electronic banking transactions. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: SCC 5.15 Investment and Collateral ization of Public Funds 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: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water HHealthcare Motor Pool Other 116 Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Signature: Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation x Approve Res. Other: 117 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-063 A Resolution of the City Council of the City of Seward, Alaska, Authorizing Signatures for All City Bank Accounts and Rescinding All Previous Resolutions in Conflict Herewith NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. Any two of the following signatures shall appear on all checks, drafts,notes or orders drawn against the City of Seward bank accounts maintained at the Seward Branch of Wells Fargo or the Seward Branch of the First National Bank of Anchorage: Sully Jusino, Deputy Finance Director Stephen Sowell,Assistant City Manager Norm Regis,Acting City Manager Kris Peck,City Clerk Section 2. Any one of the above persons shall have access to and full power to remove the contents of and to exchange or surrender the safe deposit boxes rented by the City of Seward located at the Seward Branch of Wells Fargo under the terms of the City of Seward's banking services agreement with Wells Fargo. Section 3. Any one of the above persons shall have authority to invest City monies with financial institutions as prescribed by the Seward City Code Chapter 5.15, Investment and Collateralization of Public Funds. Section 4. All previously approved resolutions in conflict herewith are hereby rescinded. Section 5.This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of May 2023. 118 I Sponsored by: Regis CITY OF SEWARD, ALASKA 11 RESOLUTION 2021-034 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING SIGNATURES FOR ALL CITY BAND a ACCOUNTS AND RESCINDING ALL PREVIOUS RESOLUTIONS IN CONFLICT HEREWITH BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Any two of the following signatures shall appear on all checks, drafts,notes or orders drawn against the City of Seward bank accounts lnaintallied at the Seward Branch of Wells Fargo or the Seward Branch of the First National Bank of Anchorage: Jclinito I'ac, !"lnancc Direelor Stephen Sowell, Assistant City Manager Norm.Regis, Acting City Manager Brenda Ballou, City Clerk Section 2. Any one of the abo,c persons shall have access to and full power to remove the contents of and to exchan-c or surrender the Salt deposit boxes rented by the City of Seward located at the Seward Branch cif Wclls Fargo under the terms of the City of Seward's banking services agreement with Wells Tarp. Section 3. Any one of the above persons shall have authority to invest City monies with financial institutions as prescribed by the Seward City Code Chapter 5.15, Investment and Collateral ization of Public Funds. Section 4. All previously approved resolutions in conflict herewith are hereby rescinded. Section 5. This resolution shall take effect immediately upon adoption.. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22"d day of March, 2021. THE C I Y OF S WARD,ALASKA 7 h s Ckristy Terry Mayor L) j 119 CITY OF SEWARD, ALASKA RES01A."HON 2021-034 AYES: Oseji�a, McClure, Casagi-mi ia, UcMoss, Seese, Baclam, Terry NOES: Noiie ABSENT: None ABSTAIN: None ATTEST: A I - -A' rends 3. gall C City Clerk (City Seal),.w, '"ift,0 01. tom? __ d • SEAL • w s OF �►� v vww v `''�+nru v■rf 120 Council Agenda Statement 4' Meeting Date: March 22, 2021 Through: Norm Regis, Acting City Manager From: Sam Hickok, Deputy Finance Director Agenda Item: Authorization for Banking Signatures BACKGROUND &JUSTIFICATION: The Seward City Council is required to pass a resolution listing the individuals authorized to invest monies and/or sign banking documents on behalf of the City of Seward. The recent onboarding of the new Finance Director provides the need to update this authorization. This action forms the basis upon which signature cards will be updated at the local banking institutions, and checks and City payments and investments will be authorized on behalf of the City. While each individual listed on the resolution is authorized to act on behalf of the City,the City's practice is to have two separate individuals authorize every investment,approve all City payments, and authorize all electronic banking transactions. CONSISTENCY CHECKLIST: Yes No N/A I. Comprehensive Plan (docconent source here): X 2. Strategic Plan (docconent source here): X Other(list): Seward City Code 5.15 Investment &Collateral ization of 3' Public Funds X ATTORNEY REVIEW Yes X No FISCAL NOTE This action has no fiscal impact on the City. Approved by Finance Department: RECOMMENDATION Seward City Council approve Resolution 2020-0 3 4, updating the authorized signatories to the City of Seward's bank accounts and rescinding previous resolutions in conflict herewith. 121 • swir- Resolution 2023-064 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Enter Into A Contract With The Financial Engineering Company In An Amount Not-To-Exceed $55,350 To Conduct An Electric Rate Study So That Customer Rates Can Be Set Appropriately To Recover Expenses And Generate A Reasonable Financial Return To The City's General Fund. Documents: • Agenda Statement • Resolution 2023-064 • Attachments: o Estimate from The Financial Engineering Company 122 City Council Agenda Statement Meeting Date: May 22, 2023 To: City Council Through: Norm Regis, Acting City Manager From: Rob Montgomery Subject: Resolution 2023-064: Authorizing The City Manager To Enter Into A Contract With The Financial Engineering Company In An Amount Not-To- Exceed $55,350 To Conduct An Electric Rate Study So That Customer Rates Can Be Set Appropriately To Recover Expenses And Generate A Reasonable Financial Return To The City's General Fund. Background and justification: For electric utilities, having customer rates set appropriately is critical to the financial health of the organization. The City's electric department must increase its customer rates no later than January 1, 2024 to effectively recover its expenses and generate a reasonable return to the City's general fund. Beginning in 2025, the City will begin making payments on the principle of its $10 million revenue bond, issued in 2022 to assist the City with its transmission infrastructure and substations rebuild project. The amount of this annual payment of principal and interest ranges from $441,750.00 to $595,250.00. The utility is also facing significant increases in expenses related to higher costs for supplies and materials, higher consulting services costs, and overall increases in inflation. If approved, the rate study will get underway in mid-June with a presentation being made to Council by The Financial Engineering Company in late summer or early fall. Any increase in rates would be based upon "cost of service"to ensure rates accurately reflect the expenses incurred to serve each customer classification. The Financial Engineering Company is led by Mike Hubbard, an expert in rate making who has assisted the City of Seward with rate increases since 2008. Seward's last rate study was conducted in 2021. The most significant results of that stud included the creation of a new Industrial rate classification for Seward's largest users of power and residential customers with average usage were given an increase of about $2 on rates. However, this amount was offset by an approximately $2 reduction in the Cost of Power Adjustment (COPA) for customers, which was a result a true up on the COPA for the Alaska SeaLife Center. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.3 "Continue to improve the quality and efficiency of city governmental services." Strategic Plan: Other: 123 Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ $55,350 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): X Budgeted Line item(s): 15000-3000-7009 Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General SMIC X Electric Wastewater Boat Harbor Parking Water F1 Healthcare Motor Pool Other Note:amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ 6,298,233 Available Unrestricted Cash Balance: $ 7,433,978 Finance Director Signature: --��� Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation eAdopt Res Other: 124 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-064 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Enter Into A Contract With The Financial Engineering Company In An Amount Not-To-Exceed $55,350 To Conduct An Electric Rate Study So That Customer Rates Can Be Set Appropriately To Recover Expenses And Generate A Reasonable Financial Return To The City's General Fund WHEREAS, The Financial Engineering Company is led by Mike Hubbard, an expert in rate making who has assisted the City of Seward with rate increases since 2008; and WHEREAS,the City's electric department is facing significant increases in expenses related to deferred maintenance on its transmission infrastructure and substations, higher costs for supplies and materials, higher costs for consulting services, and overall increases in inflation; and WHEREAS, the City's electric department must begin paying interest in 2023 and in 2025 paying on the principal of the $10 million revenue bond secured in 2022, a total amount which ranges from $441,750.00 to $595,250.00 annually; and WHEREAS, the rate study would get underway in mid-June with approved increases in customer rates implemented no later than January 1, 2024; and WHEREAS, the increase in customer rates would be based upon"cost of service" to ensure rates accurately reflect the expenses incurred to serve each customer classification; and WHEREAS, the proposed rates increase for each customer classification would be presented to City Council for approval by The Financial Engineering Company in late summer or early fall of 2023. 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 enter into a contract with The Financial Engineering Company to conduct a electric rate study to appropriately set customer rates no later than January 1, 2024. Section 2. Funding in an amount not to exceed $55,350, including expenses related to travel and lodging to perform discovery/due diligence and to present the rate study findings to Council, is hereby appropriated from 15000-3000-7009. Section 3. This resolution shall take effect immediately upon adoption. 125 the Financial Englneering Company 235 Rockland street,Rockport,Maine 04856 Cell/Text: (207)691-8347 wwvv.FinEngCo.com E-mail: mhubbard(a FinEngCo.com April 23, 2023 Mr. Rob Montgomery, Electric Utility Manager City of Seward PO Box 167 Seward, Alaska 99664 Dear Rob: Attached is a proposed scope of service and budget for a Cost of Service/Rate Design study for the Electric Utility. If you have any questions regarding the attached material, please do not hesitate to call or text me at (207) 691-8347. Very truly yours, THE FINANCIAL ENGINEERING COMPANY /u el/i 7), G MICHAEL D. HUBBARD 126 CONTRACT The Financial Engineering Company ("FEC") shall provide the following work for the City of Seward ("City") regarding a cost-of-service/rate study for the City's Electric Utility. METHODOLOGY Overall—A cost-of-service study is to be performed that properly allocates the Electric Utility's revenue requirements to each customer class. Although the utility is not rate regulated by the Regulatory Commission of Alaska ("RCA"),the work will be performed using the guidelines set by the RCA for regulated utilities. Thus, revenue requirements will be allocated to each customer class using appropriate functionalization, classification, and allocation factors set forth in the cost allocation manual developed by the National Association of Regulatory Utility Commissioners (the "NARUC Manual"). Rates will then be designed such that the revenues collected from each customer class will be approximately equal to the allocated revenue requirements. In this way, the "cost causer" becomes the "cost payer." It is noted that although the Electric Utility is not rate regulated, a potential purchaser of the utility is regulated. That utility will be interested not only in the results of the study but the underlying analysis and assumptions. Therefore, models developed for this study will be structured to be easy to follow by third parties and available for distribution at the City's request. The last cost-of-service study performed several years ago resulted in the development of an Industrial rate for several large customers, with the Alaska Sea Life Center transitioning from a special contract to the Industrial rate. The analysis in this study will include a review of the Industrial rate and whether the assumptions used in establishing the rate remain valid. Task 1 -Data Request. A data request will be prepared and forwarded to the City. Once the data is received, it will be reviewed and a preliminary analysis will be performed regarding potential rate classes, revenue adequacy and other metrics. Task 2—Initial Meeting. Once the preliminary analysis is performed, FEC will travel to Seward to meet with City staff. The purpose of the meeting is to: • Review the proposed scope of work and make necessary clarifications, modifications, or additions. • Review data collected from the initial data request and obtain supplemental information as necessary. • Discuss known factors that will change historical operating results to better reflect on-going expenses. • Discuss billing history and how billing determinants may change in the near future. - 1 - 127 • Discuss future betterments that are planned, the anticipated costs, and methods of financing. • Develop projections of an operating budget for 2025 (see Task 3). Task 3 — Model Update/Analysis. The Revenue Requirements/Cost-of-Service/Rate Design model developed for previous studies will be updated and modified to provide two years of historical expenses, the 2023 budget, and projections for 2024 and 2025. Expenses for 2024 will be taken from the current budget, but 2025 expenses will be developed through discussions with the City. Billing determinants will be equal to recent history but modified based on conversations with staff. The model will then allocate the revenue requirements to the various customer classes based on industry-accepted principles. In general terms,variable costs are allocated based on each class' respective energy requirements,fixed generation and distribution costs allocated based on each class' contribution to coincident and non-coincident peak, and customer-related costs based on number of customers. At times, direct assignments are used where costs can be attributed to a specific customer class. Demand data is typically difficult to obtain for those classes that are not demand metered, but FEC has developed methodologies for estimating these amounts, and these methodologies have been accepted by the Regulatory Commission of Alaska. The model will be developed using the Excel platform. Task 4 — Rate Design. The rate model will determine the adequacy of rates under several scenarios. These scenarios include the following. • Overall adequacy. The total utility revenues projected to be collected for 2024 and 2025 will be compared to the total utility revenue requirements for each year based on existing rates. • Individual Rate Class. How close the rates of each rate class are set to cost-of-service will be determined by comparing the revenue requirements allocated to the rate class to the projected collected revenues from the rate class. Specific rates for each class will then be developed such that projected revenues are reasonably close to the allocated cost of service. If rate adjustments are required, several options shall be developed for consideration. Tasks—Other Rates. Rates of the Railbelt utilities and selected other utilities within the State will be collected and a comparison made to those of Seward. The comparison will be made for each rate class of Seward and will show monthly bills for various usage levels. The comparison will separate base rates and fuel cost adjustments. Task 6 — Written Report. A written report describing the analysis and findings will be prepared. The report shall also make reference to industry-accepted practices so that the reader will know that the analysis was performed with no hidden agendas and would meet - 2 - 128 the requirements of an RCA review. The report shall be written such that those not knowledgeable of the electric utility industry can understand the work performed. Task 7—Presentations. FEC will travel to Seward and present the results to the City Council. The presentation shall summarize the report and provide the Council and public opportunities to have any questions and concerns addressed. The presentation will include a review of current and proposed rates and the calculation of a customer's bill for each rate class. Task 8—Refinement. The analysis, rate development, and report will be refined, if required, based on any concerns of the Council. BUDGET A budget to perform the scope of work has been prepared and is summarized in Attachment 1. The budget is based on two site visits (preliminary and presentation). Should a second meeting with Council be required, costs for that work and meeting are separately identified. The work can be performed on a fixed-fee basis or a time and materials with the total billing not to exceed the amount shown in the Attachment. Approved by: Michael D Hubbard Norm Regis, Acting City Manager the Financial Engineering Company City of Seward Approved by the Seward City Council on - 3 - 129 CITY OF SEWARD- ELECTRIC DEPARTMENT RATE STUDY Budget TASK HOURS Labor Expenses Total 1 Data Request 4 $ 1,000 $ 1,000 2 Initial Meeting/Data Collection Labor 24 6,000 Air Fare 2,250 Surface Transportation 500 Hotel 1,000 Meals 200 Subtotal 24 6,000 3,950 9,950 3 Model Modification/Analysis 40 10,000 10,000 4 Rate Design 24 6,000 6,000 5 Other Rates 8 2,000 2,000 6 Report 36 9,000 9,000 7 Presentation aind Preparation Labor 20 5,000 Air Fare 2,250 Surface Transportation 500 Hotel 750 Meals 200 Subtotal 20 5,000 3,700 8,700 TOTAL 156 $ 39,000 $ 7,650 $ 46,650 8 Second Presentation Labor 20 5,000 Air Fare 2,250 Surface Transportation 500 Hotel 750 Meals 200 Subtotal 20 5,000 3,700 8,700 TOTAL 176 $ 44,000 $ 11,350 $ 55,350 - 4 - 130 • swir- Resolution 2023-065 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter a Financial Advisory Agreement with PFM Financial Advisors LLC, And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-065 • Attachments: Services Agreement Resolution 2011-070 131 City Council Agenda Statement a Meeting Date: May 22, 2023 t! To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-065: Authorizing the City Manager to Enter a Financial Advisory Agreement with PFM Financial Advisors LLC, And Appropriating Funds Background and justification: The City of Seward previously utilized Don Grimes for Financial Advisory Services, dating back to the 1980s. Don worked for Wells Fargo Brokerage Services LLC and Blitch Associates, Inc over the course of that 40+ year relationship with the City of Seward. Don unfortunately passed away in 2022 and the City has a need for a new Financial Advisor. Financial Advisory Services include, but are not limited to; Debt Transactions, Market Updates and Management, Financial Planning, Policy Development, and Bond Council Interactions. With a number of projects underway and projected in the near future, it is important that the City of Seward obtain a new provider of these financial services. Compensation for these services will be provided at the following rates: Bond Proceeds Issuance Fee per $1,000 For financings up to $20 million $1.50 per$1,000. with a $25.000 minimum For financings between $20 million and $75 million $30,000 plus$0.75 per$1,000 over$20 million For financings over$75 million $75,OD0 plus$0.25 per$1,000 over$75 million Compensation for Other Services For non-transactional services. PFM will charge hourly rates as follows: Experience Level Hourly Rate Managing Dire ctor+Director $350 Senior Managing Consultant $300 Senior Analyst $260 Analyst $225 Associate (Administrative Support) $190 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: All aspects of the Comprehensive Plan are affected Strategic Plan: Other: 132 Certification of Funds Total amount of funds listed in this legislation: $ 30,000 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 30,000 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): x Not budgeted 01000-1120-7009 Not applicable Fund Balance Information Affected Fund (✓): x General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ 6,697,919 Available Unrestricted Cash Balance: $ 9,436,721 Finance Director Signature: �� -- Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation x Approve Res. Other: 133 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-065 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter a Financial Advisory Agreement with PFM Financial Advisors LLC,And Appropriating Funds WHEREAS, The City of Seward previously maintained a contract with Don Grimes through Blitch Associates for Financial Advisor Services; and WHEREAS, Don Grimes is no longer available to provide these valuable services to the community; and WHEREAS,The City of Seward has a number of projects underway, including the design of a new Public Works Facility, which will require the City to obtain bonding in the near future; and WHEREAS, Services included in the agreement include Financial Advisory Services include, but are not limited to; Debt Transactions, Market Updates and Management, Financial Planning, Policy Development, and Bond Council Interactions. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is authorized to enter a Financial Advisor Agreement with PFM Section 2. Funding in the amount of $30,000 is appropriated from the General Fund Reserves account number 01000-0000-3400 to the City Manager contracted services account number 01000-1120-7009. Section 3. This resolution shall take effect upon adoption. Passed and Approved by the City Council of the City of Seward, Alaska this 22nd day of May, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor 134 PFM FINANCIAL ADVISORS LLC AGREEMENT FOR FINANCIAL ADVISORY SERVICES This agreement ("Agreement"), made and entered into this 1st day of May, 2023, by and between the City of Seward, Alaska (the "City") and PFM Financial Advisors LLC (hereinafter called"PFM"), sets forth the terms and conditions under which PFM shall provide services. WHEREAS, the City desires to obtain the services of a financial advisor to develop and assist in implementing the City's strategies to meet its current and long-term operations, financial obligations, capital financing needs and render assistance in respect to debt transactions; and WHEREAS, PFM is capable of providing the necessary financial advisory services. NOW, THEREFORE, in consideration of the above-mentioned premises and intending to be legally bound hereby, the City and PFM agree as follows: I. SCOPE OF SERVICES PFM shall provide, upon request of the City, services related to financial planning, budget and strategic advice and planning, policy development and services related to debt issuance, as applicable and set forth in Exhibit A to this Agreement. the City acknowledges and agrees that most tasks requested by the City will not require all services provided for in Exhibit A and as such the specific scope of services for such task shall be limited to just those services required to complete the task. Any material changes in or additions to the scope of services described in Exhibit A shall be promptly reflected in a written supplement or amendment to this Agreement. Services provided by PFM which are not specifically referenced in the scope of services set forth in Exhibit A of this Agreement shall be completed as agreed in writing in advance between the City and PFM. Upon the request of the City, an affiliate of PFM or a third party referred or otherwise introduced by PFM may agree to additional services to be provided by such affiliate or third party, by a separate writing, including separate scope and compensation, between the City and such affiliate or third party. IL WORK SCHEDULE The services of PFM are to commence as soon as practicable after the execution of this Agreement and a request by the City for such service. III. REGISTERED MUNICIPAL ADVISOR; REQUIRED DISCLOSURES 1. PFM is a registered municipal advisor with the Securities and Exchange Commission (the "SEC") and the Municipal Securities Rulemaking Board (the "MSRB"), pursuant to the Securities Exchange Act of 1934 Rule 15Bal-2. If the City has designated PFM as its independent registered municipal advisor ("IRMA") for purposes of SEC Rule 15Bal- 1(d)(3)(vi) (the"IRMA exemption"),then services provided pursuant to such designation shall be the services described in Exhibit A hereto, subject to any agreed upon limitations. Verification of independence (as is required under the IRMA exemption) shall be the responsibility of such third Rev.11.12.2021 - I - 135 party seeking to rely on such IRMA exemption. PFM shall have the right to review and approve in advance any representation of PFM's role as IRMA to the City. 2. MSRB Rules require that municipal advisors make written disclosures to their clients of all material conflicts of interest, certain legal or disciplinary events and certain regulatory requirements. Such disclosures are provided in PFM's Disclosure Statement delivered to the City prior to or together with this Agreement. IV. FINANCIAL ADVISORY COMPENSATION For the services provided under this Agreement, PFM's professional fees shall be paid as provided in Exhibit B to this Agreement and the City shall pay expenses and fees for other services not set forth in Exhibit A as provided below. All fees shall be due to PFM within thirty (30) days of the date of invoice. 1. Reimbursable Expenses In addition to fees for services, PFM will be reimbursed for necessary, reasonable, and documented out-of-pocket expenses incurred, including travel, meals, lodging, telephone, mail, and other ordinary cost and any actual extraordinary cost for graphics, printing, data processing and computer time which are incurred by PFM. Upon request of the City, documentation of such expenses will be provided. 2. Other Services Any services which are not included in the scope of services set forth in Exhibit A of this Agreement will be subject to separate, mutually acceptable fee structures. V. TERMS AND TERMINATION This Agreement shall be effective from the date first set forth above until December 31, 2025 (the"Initial Term")and shall automatically renew for additional 3 year periods (each a "Renewal Term" and together with the Initial Term, the "Term"), unless terminated in writing by either party upon thirty (30) days written notice to the other party. Upon any such termination, PFM will be paid for all services performed and costs and expenses incurred up to the termination date. VI. ASSIGNMENT PFM shall not assign or transfer any interest in this Agreement or subcontract any of the work performed under the Agreement without the prior written consent of the City; provided that PFM retains the right to enter into a sale, merger, acquisition, internal reorganization, or similar transaction involving PFM's business without any such consent. Rev.11.12.2021 - 2 - 136 VIL INFORMATION TO BE FURNISHED TO PFM All information, data, reports, and records in the possession of the City or any third parry necessary for carrying out any services to be performed under this Agreement("Data") shall be furnished to PFM. PFM may rely on the Data in connection with its provision of the services under this Agreement and the provider thereof shall remain solely responsible for the adequacy, accuracy and completeness of such Data. VIIL NOTICES All notices and other communication required under this Agreement shall be in writing and shall be sent by certified mail, return receipt requested, or by nationally recognized courier, with written verification of receipt. Notices shall be sent to the parties at the following addresses, or to such other address as a parry may furnish to the other party: CITY OF SEWARD, ALASKA 410 Adams Street City Hall Building Seward,AK 99664 Attention: Sully Jusino,Deputy Finance Director PFM FINANCIAL ADVISORS LLC 107 Spring Street Seattle,WA 98104 Attention: Thomas Toepfer,Managing Director with copy via email at toe12fert&12fm.com and copy via email to Fred Eoff, Director, at eofM12fm.com IX. TITLE TRANSFER All materials, except functioning or dynamic financial models,prepared by PFM pursuant exclusively to this Agreement shall be the property of the City. Subject to the exception described above, upon termination of this Agreement, at the City's reasonable request no later than three (3) years after the termination of this Agreement PFM shall deliver to the City copies of any deliverables pertaining to this Agreement. X. PFM'S REPRESENTATIVES The services set forth in this Agreement shall be provided by PFM's project manager, Fred Eoff, Director, Matt Schoenfeld, Senior Managing Consultant, and other PFM employees as may be necessary. The City has the right to request, for any reason, that PFM replace any member of the advisory team. Should the City make such a request, PFM shall promptly suggest a substitute for approval by the City. XI. INSURANCE PFM shall maintain insurance coverage with policy limits not less than as stated in Exhibit C. Rev.11.12.2021 - 3 - 137 XII. LIMITATION OF LIABILITY Except to the extent caused by its willful misconduct, bad faith, gross negligence or reckless disregard of its obligations or duties, PFM shall have no liability to any parry under this Agreement. XIIL INDEPENDENT CONTRACTOR; NO THIRD-PARTY BENEFICIARY PFM, its employees, officers and representatives at all times shall be independent contractors and shall not be deemed to be employees, agents, partners, servants and/or joint venturers of the City by virtue of this Agreement or any actions or services rendered under this Agreement. Nothing in this Agreement is intended or shall be construed to give any person, other than the parties hereto,their successors and permitted assigns, any legal or equitable rights,remedy or claim under or in respect of this Agreement or any provisions contained herein. In no event will PFM be liable for any act or omission of any third party or for any circumstances beyond PFM's reasonable control including, but not limited to, fire, flood, or other natural disaster, war, riot, strike, act of terrorism, act of civil or military authority, software and/or equipment failure, computer virus, or failure or interruption of electrical,telecommunications or other utility services. XIV. APPLICABLE LAW This Agreement shall be construed, enforced, and administered according to the laws of the State of Alaska. PFM and the City agree that, should a disagreement arise as to the terms or enforcement of any provision of this Agreement, each parry will in good faith attempt to resolve said disagreement prior to pursuing other action. XV. ENTIRE AGREEMENT; SEVERABILITY This Agreement represents the entire agreement between the City and PFM and may not be amended or modified except in writing signed by both parties. For the sake of clarity, any separate agreement between the City and an affiliate of PFM or any third parry referred or introduced by PFM shall not in any way be deemed an amendment or modification of this Agreement. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision. XVL EXECUTION; COUNTERPARTS Each party to this Agreement represents and warrants that the person or persons signing this Agreement on behalf of such party is authorized and empowered to sign and deliver this Agreement for such party. This Agreement may be signed in any number of counterparts, each of which shall be an original and all of which when taken together shall constitute one and the same document. Rev.11.12.2021 - 4 - 138 IN WITNESS WHEREOF, the City and PFM have executed this Agreement as of the day and year herein above written. CITY OF SEWARD, ALASKA By: Name: Title: Date: PFM FINANCIAL ADVISORS LLC By: Name: Thomas Toepfer Title: Managing Director Date: Rev.11.12.2021 - S - 139 EXHIBIT A SCOPE OF SERVICES 1. Services related to debt transactions subject to transaction fees as set forth in Exhibit B, Section 1. Upon the request of the City or as required to complete the financing transaction: • Develop, or review, a financing plan in concert with the City's staff which would include recommendations as to the timing and number of series of bonds to be issued. • Advise as to the various financing alternatives available to the City. • Develop alternatives related to a debt transaction including evaluation of revenues available, maturity schedule and cash flow requirements. • Identify key bond covenant features and advise as to the financial consequences of provisions to be included in documents regarding security, creation of reserve funds, flow of funds, redemption provisions, additional parity debt tests, etc. • Assist the City by recommending a method of sale, either as a negotiated sale, direct (bank or other financial institution)placement, competitive sale, or through the Alaska Municipal Bond Bank Authority ("AMBBA"). • For a competitive sale or direct placement, make recommendation as to the best bid. • For a negotiated sale, assist in the solicitation, review and evaluation of any investment banking proposals, and provide advice and information to the City needed to make a selection of a specific firm(s). • If appropriate, develop credit rating presentation(s) and coordinate the review with the City and credit rating agency. • Assist the City in the procurement of other services relating to debt issuance such as official statement printing, verification agent,paying agent, registrar, etc. • Coordinate with the City's staff and other advisors as respects the furnishing of data for offering documents, it being understood that PFM is not responsible for the inclusion or omission of any material in offering documents. • Review Preliminary Official Statements and final Official Statements prepared on behalf of the City for use in marketing any bonds and meeting regulatory requirements. • As applicable, advise the City on the condition of the bond market at the time of sale, including volume, timing considerations, competing offerings, and general economic considerations. • Assist and advise the City in negotiations with investment banking groups regarding fees,pricing of the bonds and final terms of any security offering and make recommendations regarding a proposed offering to obtain the most favorable financial terms based on existing market conditions. • For any competitive sale of bonds or notes, assist in the preparation of the official notice of sale, recommend sale parameters, take steps necessary to ensure broad market exposure of the issue, through the use of newswire services and official statement distribution, and perform additional steps necessary and customary for competitive bond sales. • Arrange for the closing of the transaction including final delivery of the bonds. Rev.11.12.2021 - 6 - 140 2. General, ongoing services relative to periodic market updates, financial planning, credit ratings, and policy development, subject to fees forth in Exhibit B, Section 2. Upon request of the City: • Provide general advice, input, and planning as may be requested from time to time by the City. • Evaluate the City's capital financing plans and needs, and the City's financial resources, relative to any proposed financing. • Provide analysis of financing options,identify risks,and advise on the feasibility of financing plans. • Periodically review outstanding obligations of the City for potential debt consolidation or refinancing opportunities that may benefit the City. • Advise the City of changes in state or federal law that may be relevant to the City's future financing plans. • If requested, serve as the City's H?MA in connection with the "Municipal Advisor Rule," and review proposals/analysis provided by underwriters, banks, and other third parties. • Attend meetings with the City's staff, consultants, and other professionals upon request. Rev.11.12.2021 - 7 - 141 EXHIBIT B COMPENSATION FOR SERVICES 1. Transaction Fees The compensation schedule for competitive and negotiated sales of long-term financings according to the scope of work in Exhibit A, Section 1, will be billed at closing as follows: Bond Size Issuance Fee per $1,000 For financings up to $20 million $1.50 per$1,000,with a$25,000 minimum For financings between $20 million and $75 million $30,000 plus$0.75 per$1,000 over$20 million For financings over$75 million $75,000 plus$0.25 per$1,000 over$75 million For advisory services provided in connection with a state or federal loan, PFM will charge hourly rates based on the table above. As an example, if Seward is issuing debt through the Alaska Municipal Bond Bank Authority (AMBBA), PFM will not charge the City for work performed on behalf of AMBBA regarding their normal issuance process and will negotiate compensation with Seward for work performed on their behalf. Financings sold directly to a commercial bank(direct placements)may be subject to a reduced fee upon mutual agreement between the City and PFM, depending on the level of time and effort involved. 2. Hourly Project Fees For non-transaction services provided according to the scope of work in Exhibit A, Section 2,PFM will charge hourly fees as follows: Experience Level Hourly Rate Managing Director/Director $350 Senior Managing Consultant $300 Senior Analyst $260 Analyst $215 Associate $195 In the event the City requests PFM perform a significant special project beyond the scope of work contained in Exhibit A, Section 2,fees will be negotiated in advance of the project generally based upon the aforementioned hourly rates for the indicated levels of experience or their equivalents will apply. No such fee will be charged to the City without first entering into a written addendum or memorandum documenting the requested services and expected fee. Additionally, in the event a financing is started,but cancelled at the City's request, accrued time will be billed at hourly rates as described above. For each contract year following the initial contract year (each, individually, a "Subsequent Contract Year"), hourly fee rates shall be calculated by comparing the"All Items Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. District Average" (the "Index") for the end of month immediately preceding the start of the Subsequent Contract Year and the Index on the date one year prior to that end of month. The greater of zero percent and the percentage change in the Index shall be applied to the hourly fee rate schedule above and shall be the hourly fee rates for the applicable Subsequent Contract Year. For example, and for avoidance of doubt, for a Subsequent Contract Year commencing January 1,2024,the Index in effect on December 31,2023 will be compared to the Index in effect on December 31,2022. The percentage change in the Index will then be applied to increase the hourly rates by a similar percentage. Rev.11.12.2021 - g - 142 EXHIBIT C INSURANCE PFM Financial Advisors LLC ("PFM") has a complete insurance program, including property, casualty, general liability, automobile liability and workers compensation. PFM maintains professional liability and fidelity bond coverages which total $5 million and $5 million single loss/$10 million aggregate, respectively. PFM also carries a$5 million cyber liability policy. Our Professional Liability policy is a "claims made" policy and our General Liability policy claims would be made by occurrence. Deductibles/SIR: Automobile$100 comprehensive& $1,000 collision Cyber Liability $100,000 General Liability $0 Professional Liability(E&O) $200,000 Financial Institution Bond $50,000 Insurance Company&AM Best Rating Professional Liability (E&O).............Lloyds of London; (A; Stable) ............................................................AXIS Surplus Insurance Company; (A; Stable) Financial Institution Bond..................Berkley Regional Insurance Company; (A+; Stable) Cyber Liability ...................................Greenwich Insurance Company (A+; Stable) General Liability ................................Valley Forge Insurance Company; (A Stable) Automobile Liability..........................Continental Insurance Company; (A Stable) Excess/Umbrella Liability.................Continental Insurance Company; (A Stable) Workers Compensation. .....................Continental Insurance Company; (A Stable) & Employers Liability Rev.11.12.2021 - 9 - 143 DISCLOSURE OF CONFLICTS OF INTEREST AND OTHER IMPORTANT MUNICIPAL ADVISORY INFORMATION PFM Financial Advisors LLC L Introduction PFM Financial Advisors LLC and PFM Swap Advisors LLC(hereinafter,referred to as"We,"..Us,"or"Our")are registered municipal advisors with the Securities and Exchange Commission(the"SEC")and the Municipal Securities Rulemaking Board (the"MSRB"),pursuant to the Securities Exchange Act of 1934 Rule 1513al-2.In accordance with MSRB rules,this disclosure statement is provided by Us to each client prior to the execution of its advisory agreement with written disclosures of all material conflicts of interests and legal or disciplinary events that are required to be disclosed with respect to providing financial advisory services pursuant to MSRB Rule G-42(b)and(c)(ii). We employ a number of resources to identify and subsequently manage actual or potential conflicts of interest in addition to disclosing actual and potential conflicts of interest provided herein. How We Identify and Manage Conflicts of Interest Code of Ethics.The Code requires that all employees conduct all aspects of Our business with the highest standards of integrity, honesty and fair dealing. All employees are required to avoid even the appearance of misconduct or impropriety and avoid actual or apparent conflicts of interest between personal and professional relationships that would or could interfere with an employee's independent exercise of judgment in performing the obligations and responsibilities owed to a municipal advisor and Our clients. Policies and Procedures.We have adopted policies and procedures that include specific rules and standards for conduct.Some of these policies and procedures provide guidance and reporting requirements about matters that allows Us to monitor behavior that might give rise to a conflict of interest.These include policies concerning the making of gifts and charitable contributions, entertaining clients, and engaging in outside activities,all of which may involve relationships with clients and others that are important to Our analysis of potential conflicts of interest. Supervisory Structure.We have both a compliance and supervisory structure in place that enables Us to identify and monitor employees' activities, both on a transaction and Firm-wide basis, to ensure compliance with appropriate standards. Prior to undertaking any engagement with a new client or an additional engagement with an existing client, appropriate municipal advisory personnel will review the possible intersection of the client's interests, the proposed engagement, Our engagement personnel, experience and existing obligations to other clients and related parties. This review,together with employing the resources described above,allows Us to evaluate any situations that may be an actual or potential conflict of interest. Disclosures. We will disclose to clients those situations that We believe would create a material conflict of interest, such as: 1)any advice,service or product that any affiliate may provide to a client that is directly related to the municipal advisory work We perform for such client; 2)any payment made to obtain or retain a municipal advisory engagement with a client; 3) any fee-splitting arrangement with any provider of an investment or services to a client;4)any conflict that may arise from the type of compensation arrangement We may have with a client;and 5)any other actual or potential situation that We are or become aware of that might constitute a material conflict of interest that could reasonably expect to impair Our ability to provide advice to or on behalf of clients consistent with regulatory requirements. If We identify such situations or circumstances, We will prepare meaningful disclosure that will describe the implications of the situation and how We intend to manage the situation. We will also disclose any legal or disciplinary events that are material to a client's evaluation or the integrity of Our management or advisory personnel. We will provide this disclosure(or a means to access this information)in writing prior to starting Our proposed engagement,and will provide such additional information or clarification as the client may request.We will also advise Our clients in writing of any subsequent material conflict of interest that may arise, as well as the related implications,Our plan to manage that situation,and any additional information such client may require. II. General Conflict of Interest Disclosures Disclosure of Conflicts Concerning the Firm's Affiliates Our affiliates offer a wide variety of financial services, and Our clients may be interested in pursuing services separately provided by an affiliate. The affiliate's business with the client could create an incentive for Us to recommend a course of action designed to increase the level of the client's business activities with the affiliate or to recommend against a course of Revised 12/1/2022 Page 1 144 action that would reduce the client's business activities with the affiliate. In either instance, We may be perceived as recommending services for a client that are not in the best interests of Our clients,but rather are in Our interests or the interests of Our affiliates. Accordingly,We mitigate any perceived conflict of interest that may arise in this situation by disclosing it to the client, and by requiring that there be a review of the municipal securities transaction or municipal financial product to ensure that it is suitable for the client in light of various factors,after reasonable inquiry,including the client's needs,objectives and financial circumstances. Further,We receive no compensation from Our affiliates with respect to a client introduction or referral. If a client chooses to work with an affiliate,We require that the client consult and enter into a separate agreement for services,so that the client can make an independent,informed,evaluation of the services offered. Disclosure of Conflicts Related to the Firm's Compensation From time to time,We may be compensated by a municipal advisory fee that is or will be set forth in an agreement with the client to be,or that has been,negotiated and entered into in connection with a municipal advisory service. Payment of such fee may be contingent on the closing of the transaction and the amount of the fee may be based,in whole or in part,on a percentage of the principal or par amount of municipal securities or municipal financial product. While this form of compensation is customary in the municipal securities market,it may be deemed to present a conflict of interest since We may appear to have an incentive to recommend to the client a transaction that is larger in size than is necessary. Further, We may also receive compensation in the form of a fixed fee arrangement. While this form of compensation is customary, it may also present a potential conflict of interest,if the transaction requires more work than contemplated and We are perceived as recommending a less time consuming alternative contrary to the client's best interest so as not to sustain a loss.Finally,We may contract with clients on an hourly fee bases. If We do not agree on a maximum amount of hours at the outset of the engagement, this arrangement may pose a conflict of interest as We would not have a financial incentive to recommend an alternative that would result in fewer hours. We manage and mitigate all of these types of conflicts by disclosing the fee structure to the client,and by requiring that there be a review of the municipal securities transaction or municipal financial product to ensure that it is suitable for the client in light of various factors,after reasonable inquiry,including the client's needs,objectives and financial circumstances. Disclosure of Conflicts Related to the Firm's Compensation Structure for Our Registered Advisors. Pursuant to various employee compensation structures, from time to time We offer certain of Our registered municipal advisors ("Registered Advisors") financial benefits based on his or her business plan, client base, performance, and/or transactions closed. This provides an incentive for such Registered Advisors to seek to retain additional clients and/or transactions or services from clients. While this form of compensation may be customary in some segments of the municipal advisory market,provision of such financial benefits may be deemed to present a conflict of interest. We manage and mitigate these types of conflicts by Registered Advisor's adherence to Our Code of Ethics and Policies and Procedures,and by requiring that there be a review of the municipal securities transaction or municipal financial product to ensure that it is suitable for the client in light of various factors,after reasonable inquiry,including the client's needs,objectives and financial circumstances. Disclosure Concerning Provision of Services to State and Local Government,and Non Profit Clients We regularly provide financial advisory services to state and local governments,their agencies,and instrumentalities,and non- profit clients. While Our clients have expressed that this experience in providing services to a wide variety of clients generally provides great benefit for all of Our clients,there may be or may have been clients with interests that are different from(and adverse to)other clients. If for some reason any client sees Our engagement with any other particular client as a conflict,We will mitigate this conflict by engaging in a broad range of conduct,if and as applicable. Such conduct may include one or any combination of the following: 1) disclosing the conflict to the client; 2) requiring that there be a review of the municipal securities transaction or municipal financial product to ensure that it is suitable for the client in light of various factors,including the client's needs, objectives and financial circumstances; 3) implementing procedures that establishes an "Informational Bubble"that creates physical,technological and procedural barriers and/or separations to ensure that non-public information is isolated to particular area such that certain governmental transaction team members and supporting functions operate separately during the course of work performed;and 4)in the rare event that a conflict cannot be resolved,We will withdraw from the engagement. Disclosure Related to Legal and Disciplinary Events As registered municipal advisors with the Securities and Exchange Commission (the "SEC") and the Municipal Securities Rulemaking Board(the"MSRB"),pursuant to the Securities Exchange Act of 1934 Rule 1513al-2, Our legal,disciplinary and judicial events are required to be disclosed on Our forms MA and MA-I filed with the SEC,in`Item 9 Disclosure Information' of form MA,`Item 6 Disclosure Information'of form MA-I,and if applicable,the corresponding disclosure reporting page(s) ("DRP"). To review the foregoing disclosure items and material change(s)or amendment(s),if any,clients may electronically Revised 12/1/2022 Page 2 145 access PFM Financial Advisors LLC filed forms MA and MA-I on the SEC's Electronic Data Gathering, Analysis, and Retrieval system,listed by date of filing starting with the most recently filed,at: PFM Financial Advisors LLC— http://www.sec.gov/cgi-bin/browse-edgar?company=PFM+Financial&owner=exclude&action=getcompany III. Specific Conflicts of Interest Disclosures—City Seward,Alaska To Our knowledge,following reasonable inquiry,We make the additional disclosure(s)of actual or potential conflicts of interest cited below in connection with the municipal advisory services currently being contemplated for client. Disclosure Pertaining to the Alaska Municipal Bond Bank Authority From time to time, We serve as financial advisor to the Alaska Municipal Bond Bank Authority on certain engagements. Although We do not anticipate that this will create a conflict of interest,nor do We believe this will impair our ability to provide services to the City of Seward("the City"),this situation may be perceived as a potential conflict of interest. Therefore,we will mitigate this conflict by 1)disclosing the situation to the City;2)requiring that there be a review of the municipal securities transaction to ensure that it is suitable for the City in light of various factors,including the City's needs,objectives and financial circumstances; and 3) maintaining the confidentiality of any non-public information obtained during the course of work performed on behalf of the City. IV. Municipal Advisory Complaint and Client Education Disclosure The MSRB protects state and local governments and other municipal entities and the public interest by promoting fair and efficient municipal securities markets.To that end,MSRB rules are designed to govern the professional conduct of brokers,dealers,municipal securities dealers and municipal advisors. Accordingly,if you as municipal advisory customer have a complaint about any of these financial professionals, please contact the MSRB's website at www.msrb.org, and consult the MSRB's Municipal Advisory Client brochure. The MSRB's Municipal Advisory Client brochure describes the protections available to municipal advisory clients under MSRB rules,and describes the process for filing a complaint with the appropriate regulatory authority. PFM's Financial Advisory services are provided by PFM Financial Advisors LLC. PFM's Swap Advisory services are provided by PFM Swap Advisors LLC. Both entities are registered municipal advisors with the MSRB and SEC under the Dodd Frank Act of 2010. Revised 12/1/2022 Page 3 146 Sponsored by: Oates CITY OF SEWARD,ALASKA RESOLUTION 2011-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A FINANCIAL ADVISORY AGREEMENT WITH BLITCH ASSOCIATES, INC. WHEREAS, the City of Seward previously maintained a contract with Wells Fargo Brokerage Services, LLC ("WFBS") to provide financial advisory services, with said contract having terminated effective November 6, 2009; and WHEREAS, the City has maintained a financial advisory relationship with Don Grimes ("Grimes") since the early 1980s when the City obtained financing for the Spring Creek Correctional Center, and the contract between the City and Wells Fargo Brokerage Services, LLC was terminated by WFBS upon Mr. Grimes' retirement from that firm; and WHEREAS, Grimes has joined Blitch Associates in Houston, Texas, as Senior Vice President; and WHEREAS, Grimes will continue to offer financial advisory services in Alaska under his new affiliation and has expressed a desire to continue to represent the City of Seward under agreement similar to the one previously in place with WFBS; and `m WHEREAS, the City's agreement with Blitch Associates provides that the City may terminate the agreement upon 30 days' notice; and WHEREAS, Blitch Associates understands the City's desire to specifically continue the long-standing consulting relationship with Don Grimes, and that by entering into this agreement the City expects to continue its relationship with Mr. Grimes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY" OF SEWARD, ALASKA that: Section I. The City Manager is hereby authorized to enter into a financial advisory services agreement with Blitch Associates, Inc. on behalf of the City of Seward. A copy of the contract is attached hereto and incorporated herein by reference. Section 2.This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12`" day of September, 2011. 147 CITY OF SEWARD,ALASKA RESOLUTION 2011-070 THE CITY OF SEWARD,ALASKA J/7 I illard K Dunham, Mayor AYES: Bardarson, Shafer, Casagranda, Dunham NOES: None ABSENT: Valdatta, Smith, Keil ABSTAIN: None ATTEST: 17 Jo anna Kin CMC City Clerk {City � �t�tuttri�s OF SEy�,,qo+,�+�, SEAL 10 ,t koi�+�iiw 148 Council Agenda Statement Meeting Date: September 12,2011 Through: Phillip Oates, City Manager =. f From: Kristin Erchinger,Finance Directory Agenda Item: Financial Advisory Contract BACKGROUND &JUSTIFICATION: The City of Seward has worked exclusively with Don Grimes as the financial advisor of the City for nearly three decades, since Mr. Grimes helped the City obtain financing for Spring Creek Correctional Center in the 1980s. Over the years, Mr. Grimes has brought his knowledge of the City and its financial operations to bear on many capital financing transactions including: assisting the City with devising financing plans; maximizing cost savings to the City in bond refundings; helping to represent the City at meetings involving the authorization, issuance or approval of the City's bonds; and advising the City on the best time to participate in financing transactions given market conditions, Ultimately, the job of a financial advisor is to represent the City's interests in all requested financing transactions. The City has historically paid for financial advisory services primarily when issuing bonds. The base fee for a bond issuance is typically$10,000 plus 1/8 of 1% of the par amount of the bonds ($1.25 per$1,000). When bonds are issued through the Alaska Municipal Bond Bank, the charge is 50% of this amount, and the City's bonds are almost exclusively issued through the Bond Bank. Mr. Grimes' rate to the City for a bond financing transaction has not increased in more than 15 years. In addition, a financial advisory services contract enables the City to utilize the services of the financial advisor to provide other financial advice. Although the City's financial advisory relationship has been exclusively with Mr. Grimes, the contract is between the City and Mr. Grimes' firm, Blitch Associates, Inc. In November, 2009, the City's relationship with Wells Fargo Brokerage Services, LLC was terminated when WFBS submitted their Notice of Resignation to the City, upon departure from the firm of Mr. Grimes. This is a standard practice in the industry. The administration recommends this contract as a cost-effective way to obtain quality financial advisory services from an individual with decades' worth of experience with the City of Seward's specific financial circumstances and needs. CONSISTENCY CHECKLIST Where applicable,this agenda statement is consistent with the Seward City Code, Charter,Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ATTORNEY REVIEW X Yes No FISCAL NOTE The City does not budget for financial advisory services. However, at the time of a bond issue, the cost of financial advisory services will become a cost of the issuance of the bonds, and will be factored into the overall bond issue. Any specific additional financial advisory services will be charged to the finance department's existing budget. Approved by Finance: RECOMMENDATION Seward City Council approve Resolution 2011�� approving a financial advisory services agreement with Blitch Associates, Inc. 149 • swir- Resolution 2023-066: Authorizing The City Manager To Enter Into A Contract With Seward City Tours For The Operation Of The Seasonal Seward Shuttle Transportation Service For The 2024, 2025, And 2026 Seasons, In A Total Amount Not To Exceed $827,280, And Appropriating Funds Documents: • Agenda Statement • Resolution • Contract • Contract Exhibits o Exhibit A — Proposal o Exhibit B — RFP o Proposal Payment Revision and Explanation 150 City Council Agenda Statement a Meeting Date: May 22, 2023 t! To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-066: Authorizing The City Manager To Enter Into A Contract With Seward City Tours For The Operation Of The Seasonal Shuttle Transportation Services For The 2024, 2025, And 2026 Seasons, In A Total Amount Not To Exceed $827,280, And Appropriating Funds Background and justification: Since 2010, the City of Seward has contracted out the Seasonal Summer Transportation shuttle service. It primarily benefits cruise ship passengers but also benefits independent travelers, seasonal workers, and Seward residents. The service has been paid for with Commercial Passenger Vessel Excise Tax receipts (CPV funds). In accordance with City Code, the City put out a Request for proposals on March 7, 2023, for the operation of summer shuttle transportation services for the 2024, 2025, and 2026 seasons. There were three inquiries for information but only one respondent to the RFP. The evaluation committee reviewed the proposal and deemed the proposal criteria were met. The draft contract is attached. Financial details have been included below. The length of this contract would be 3 years with the option of two 3-year extensions. 3-year contract total is $827,280.00. (If broken down on a year-by-year basis, this would be $275,760 per year). Payment Terms: 25%of total proposal price ($206,820) due Oct 1, 2023 (Invoiced 30 days prior). The remaining balance ($620,460) to be billed in four installments ($51,705.00/payment) during operating months (June, July, August, September) of each contract year (2024, 2025, 2026). If additional hours are required, or the cruise ship schedule has unexpected changes, additional charges will be incurred at a rate of $80/hr. Seward City Tours Reasons for a deposit prior to contract commencement: Guarantee of service in order to hire drivers - we can,nay them a stipend if for some unforeseen reason the contract gets canceled unexpectedly-Drivers are paid$22 27hr we have to pay this to get appropriate level ofprofessiona/ism here. $11, 520 is payroll for two weeks that we would have to cover if the city pulled the contract due to various reasons like sudden change in funding. Maintenance and repairs prior to the season. In 6 years of operation, we have not had 151 one day of disrupted service. This is largely due to extensive maintenance on the vehicles prior to the season beginning. In 2022 we spent$70K on repairs and maintenance on the fleet, on average maintenance during the winter is 20K We are committed to adding an ADA vehicle to the fleet for this contract This way all vehicles regularly servicing the Free Shuttle Contract will be ADA vehicles Inventory is extremely limited and if we find the right vehicle, we will have to move on it before the start of the season. Currently buses of a comparable quality of the current fleet is approximately$55-65K, inventory is extremely limited so if we see a vehicle come up, we have to take advantage right away. For 2024 we will be updating our service to have the current QR code show guests in real time where the buses are - this is something the shuttle service has never been able to provide to riders during the summer months. We do not require an app download to do this Development of the software and program require months of work prior to launch to ensure functionality. Payment for these developments will come from the funds provided by the down payment-Development has to start in the fall of2023 so that it is ready by early spring 2024 and we can test and trial before the season starts The total cost will be close to$75K and it is something that will remain with the city even after our contract ends whether that is 3 years from now or 9 years This is a huge upfront cost but will be minimal to maintain since it is not an App, and the Software can directed to whomever takes over the free shuttle if and when SewardCityTours is no longer providing service. Our winters are spent actively improving our fleet and services Service contracts for the Free Shuttle are greatly improved when we are able to have additional funds from an upcoming contract to help facilitate these improvements Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.4.1 Provide safe and efficient vehicular transportation facilities that meet the needs of the community. Strategic Plan: Other: Certification of Funds Total amount of funds listed in this $ 827,280 legislation: This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 827,280 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): 0 Budgeted Line 11113-0000-3710-0000-30051, 30051-0000-70009 152 item(s): x Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool X Other CPV Note: amounts are unaudited Fund Balance/Net position — restricted $ KPB CPV Funds - $228,865 SOA CPV Funds — $1,749,188 Finance Director Signature: Attorney Review x Yes Attorney Sam Severin Signature: Not Comments: applicable Administration Recommendation x Approve Resolution Other: 153 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-066 A Resolution Of The City Council Of The City Of Seward,Alaska,Authorizing The City Manager To Enter Into A Contract With Seward City Tours For The Operation Of The Seasonal Shuttle Transportation Services For The 2024,2025, And 2026 Seasons,In A Total Amount Not To Exceed $827,820,And Appropriating Funds WHEREAS, in 2010 Seward began providing a shuttle bus service between the cruise ship terminal, the harbor, and downtown Seward; and WHEREAS, the service has proved beneficial to the economic wellbeing of our community and is valued by the cruise ship industry; and WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward released a request for proposals on March 7, 2023, to include all the cost associated with providing services; and WHEREAS, Seward City Tours was the successful proposer; and WHEREAS, this resolution approves a contract between the City of Seward and Seward City Tours with a duration of 3 years with the option of two, 3-year extensions; and WHEREAS, the shuttle service is funded from the Commercial Passenger Vessel Excise Tax receipts and this use is an appropriate use of funds; and WHEREAS, The Summer Shuttle is a great benefit not only to cruise ship passengers but also to local businesses, seasonal workers, and Seward residents. 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 enter into a contract between Seward City Tours and the City of Seward for the 2024, 2025, and 2026 seasons, with the option of two (2), three year extensions. Section 2. The Seward City Council hereby appropriates the amount of$827,280 to be transferred from the commercial passenger vessel proceeds fund account no. 11113-0000-3071- 0000-30051 to the Bus Transportation Contracted Services Account no. 30051-0000-7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of May 2023. 154 PROPOSAL OFFERING FORM In compliance with this Request for Proposal, the undersigned acknowledges that 1 have read and understand all the conditions imposed herein and offer and agree to furnish the services in accordance with the information furnished below. Name of Firm: �` �� Address: au City: C'�t State: Telephone: D~7 .2-3 l— �� - 7 '� Federal ID: C JV r d77S--77 State D.- Name: Signature: Title: Date: City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 7 of 18 155 J` G PO BOX 2031 Seward, AK 99664 P. 907-231-5773 CSeward("Pi1 ours Mar 18, 2023 SewardCity7ours, LLC (SCT) would like to thank the City of Seward for the opportunity to bid for the 2024-2026 Seasonal Transportation Services Contract. After reviewing the bid documents, SCT has a firm understanding of the scope of work involved with providing safe, efficient, and enjoyable transportation services for the 2024-2026 tourist and cruise ship seasons. Jonah Swiderski has been a resident of Seward since he was a child and has seen first hand how important free shuttle transportation is to our visitors and to our local businesses who rely on the increased foot traffic created by the shuttle service in both the harbor and the down-town business center. SCT currently holds the Seasonal Transportation Services Contract and has diligently worked to improve the service wherever possible. This has been accomplished by working with city officials, listening to the feedback of riders (both local and visitors), as well as adjusting services in season to provide the best possible experience. As SCT goes into its sixth year operating the current contract we are confident that, if awarded, we can continue to provide the same level of service for the 2024-2026 seasons. Jonah Swiderski SewardCityTours,LLC 1 156 ���111 fl1jF PO BOX 2031 Seward, AK �- 99664 P. 907-231-5773 05ewara U/';)iiy c'Jours Proposal Package Part 1 Experience SewardCityTours has been in operation since 2017 and has evolved from a dedicated tour company into a transportation company that includes tours and transportation throughout southcentral Alaska. The owner, Jonah Swiderski, and Operations Manager, Yen Ly, have over 30 years of experience in the tourism industry and have been partnered in the development of SCT from its inception. The coming 2023 season will be the sixth and final year of the existing contract. SCT buses will operate for 3500 hours in the upcoming season. Operating pre, during, and post covid has given us experience far beyond that of simply providing transportation services to the community. SCT has successfully adapted to changing conditions and schedule challenges over the years. With five years of proven successful operation of the shuttle service, SCT has the knowledge and infrastructure to continue providing transportation services to the Clty of Seward. Safety Record Information All SCT fleet vehicles used for the Seasonal Transportation Services Contract meet Department of Transportation and Federal Motor Carrier Safety Administration requirements including daily pre-trip inspections, regular maintenance, and annual DOT inspections. For the past five years SCT has operated the Seasonal Transportation Services Contract for the City of Seward. During those five years we have roughly 13,500 hours of vehicle operations without a single reportable incident. The level of experience and skill set required from SCT drivers coupled with pre-season training allows SCT to mitigate the risk of incident during the operating season. 2 157 ��111111�„ PO BOX 2031 Seward, AK - 99664 R 907-231-5773 C�ewaGrd k6?Ity Jours Age, Quality, Condition Capacity, ADA Cutaway shuttle buses will be used for transportation. Designed for the transportation of passengers and built on medium duty truck chassis, these buses are designed for tours and sightseeing with large viewing windows and climate controlled interiors, Riders will enjoy not only a safe but comfortable ride in a well equipped vehicle. All vehicles have rear luggage storage or have luggage racks inside the primary cabin. Luggage space is designed to accommodate oversized luggage as well as standard luggage and personal bags. SCT limits the storage of luggage onboard to when the rider is being transported on our vehicles and must be removed upon reaching their destination. Luggage storage during the arrival and departure of cruise ships, trains, coach services etc. is the responsibility of each individual rider and not SCT. Currently the age and capacity of vehicles that are in rotation are as follows: Model Year Capacity ADA Compliant Ford F-550 2013 24 pax or 17 pax + 2 Yes ADA pax Ford F-550 2015 24 pax or 17 pax + 2 Yes ADA pax Ford E-450 2012 24 pax No Ford E-450 2012 24 pax No 3 158 PO BOX 2031 4 Seward, AK - 99664 „n� , P. 907-231-5773 �eward CAit ours Customer Service SCT was started in 2017 and initially offered historical city tours as well as comprehensive orientations of Seward, AK. The business model emphasizes customer service as a part of a complete Seward experience. Great satisfaction begins with the first greeting of each guest and continues by providing a clean, safe, comfortable vehicle and driver/guide who is both knowledgeable and friendly. SCT extends this same effort to provide customer satisfaction to our riders on the shuttle. For visitors of Seward to enjoy their trip they should expect the same effort for their simple local transportation needs. SCT hires locally when possible as the knowledge and experience of locals is invaluable to meeting our customer service goals. When hiring out of state, SCT finds individuals who are excited to be in Alaska and eager to learn about Seward and the surrounding area so that they can be a resource to summer riders who are eager to explore Seward. Ongoing Emprovements While not required or specified in the request for proposal, SCT has made additional efforts to improve the transportation service. SCT leases space in the Dale Lindsey Cruise Ship Terminal and has a physical booth that we keep manned during busy cruise ship days. The booth provides information about the shuttle service and answers questions. SCT has also improved the signage down at the cruise ship terminal to help guide and limit confusion during busy embarkation and disembarkation. This is an area that needs additional signage and SCT is continually working with Alaska Railroad terminal staff on this subject. 4 159 i PO BOX 2031 Seward, AK 99664 �'�� ��\ P. 907-231-5773 OSeward City Jours SCT intends to add a third ADA compliant vehicle to the fleet so that all vehicles in the shuttle rotation are able to offer this service. We intend to provide this additional vehicle before the end of the three year contract. Finally, SCT is currently working with mixed media companies to develop an online site/app that will allow riders to see where vehicles are in real time. Currently in the discovery phase, SCT is providing the necessary information and funding to begin this project with the hopes that riders will be able to scan a QR code at any of the shuttle stops and be able to better identify where the next shuttle is in relation to the existing stop. The list of additional features are endless and cost reliant but could include identifying which vehicles are ADA compliant, what the expected wait time is in minutes and seconds, and points of interest in relation to each individual stop. State License # 1051729 State Corporate Entity # 10055230 KPB Tax# 203193 EIN # 82-10575777 5 160 jmnk City of Seward Business License 4„ PO BOX 167, Seward, AK 99664 i No. ABL-348 ISSUED: November 29, 2022 EXPIRES: December 31, 2023 • LICENSE: SewardCityTours, LLC PO Box 2031ly Seward,AK 99664 s 1 '`ffr PHYSICAL LOCATION: Site Specific BUSINESS TYPE: Other Sightseeing bus tours THIS LICENSE MUST BE POSTED IN A CONSPICUOUS PLACE AT THE LOCATION. THIS LICENSE IS NOT TRANSFERRABLE OR ASSIGNABLE. ISSUED BY THE OFFICE OF THE CITY CLERK 907-224-4046 161 0) C'4 k 43) § j J 2 } E CL 0 .> . ❑ / S ./ f 0 -0 m =_ _ 2 C% \ ƒ o °3 0 UJ f co / / � / \ .\ \ 7 e \ 6 \ / \ $ � / 2 ƒ o k ƒ / g 6 '§ cn o % ± CL \ # \ ) � } / w c = a « & S E —0 # % ® \ 7 0 / / 7 w / t E O § / 2 0 \ 0 A \ ° a \ ° _ 3 \ ) ƒ 0 C) \ % 2 \ c \ © k ® E [ / \ \ _ \ $ ® c) co / \ 3 / @ / b E 0 0 / f / f / \u 0 E yE k / % \ \ m2 \ \ o @ g n » E E -0 \ ƒ a $ ® E \ ® n S ± j 0 k k / 0 ± � # 2 — Jo % ic E \ 0 § � S7 SE o » \ k \ / 10< E .� o < [ s \ Q n E .g E 2 0 2 � \ o eo e :tf O � « ,\ 162 If SINGLE MEMBER LLC AUTHORIZATION RESOLUTION 1,Jonah Swiderski, certify that I am the Sole Member of SewardCityTours,a Limited Liability Company ("LLC") organized under the laws of Alaska,Tax identification Number 82-1057577, and that the resolutions on this document are true and correct copy of resolutions adopted at a meeting of the Sole Member of the LLC held on March 18, 2023. BE IT RESOLVED THAT, said LLC desires that the undersigned Sole Member of the LLC is authorized to: (1) Enter into a contract for the purposes providing transportation services to the City of Seward. (2) Endorse any legal documents pertaining to SewardCityTours, LLC. BE IT RESOLVED THAT,the undersigned Sole Member of the LLC is authorized to exercise the powers listed above regarding legal and contractual services on the behalf of the LLC. BE IT RESOLVED THAT, the undersigned Sole Member of the LLC hereby certifies that he is the only individual with significant responsibility for managing the LLC and he has provided necessary information to the City of Seward. BE IT RESOLVED THAT, this resolution shall continue to have effect until express written notice or its rescission or modification has been received by the City of Seward.Any revocation, modification or replacement of a resolution must be accompanied by documentation satisfactory to the City of Seward, establishing the authority for the change. BE IT RESOLVED THAT, should the LLC change entity form or ownership, the undersigned shall prompt notify the City of Seward in writing. Signature: Name: lonah Swiderski Title: Owner Dated: March 18, 2023 163 Non-Collusion Affidavit The undersigned Respondent, having fully informed themselves regarding the accuracy of the statements made herein certifies that: (1) the Respondent developed the proposal independently and submitted it without collusion with, and without any agreement, understanding, or planned common course of action with any other entity designed to limit independent bidding or competition,and (2) the Respondent, its employees and agents have not communicated the contents of the proposal to any person not an employee or agent of the Respondent and will not communicate the proposal to any such person prior to the official opening of the proposal. The undersigned Respondent further certifies that this statement is executed for the purpose of inducing the City of Seward to consider the proposal and make an award in accordance therewith. i. L - o LLB. PL9 64 'b3I f iA'A_" iV k Name Propos -/Firm Business4re Title Date Prirntcd Name of Title Person Subscribed and sworn to me this day of _2U Non-Collusion AffidavitRFP-Seasonal Transportation Services February 21, 2022 164 SEWALLC-02 KDENISON A`O�RO CERTIFICATE OF LIABILITY INSURANCE [f3/2 (MMIDDIYYYYI 1/2023 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME; Hub International Northwest LLC PHONE FAX 480 W.Tudor Road (Arc,No,Ext):(907)258-6240 (Arc,No): Suite 100 A DRIES :Now.Anchoragepolicy@hubinternational.com Anchorage,AK 99503 INSURERS AFFORDING COVERAGE NAIC# INSURER A:Northfield Insurance Company 27987 INSURED INSURER B:National Interstate Insurance Co 32620 Seward City Tours,LLC INSURER C:Markel Insurance Company 38970 PO Box 2031 INSURER D Seward,AK 99664 INSURER E: INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF I POLICY EXP LTR TYPE OF INSURANCE IN POLICY NUMBER MM1DDfYYYYI I(MMIDDNYYYI LIMITS A. I X COMMERCIAL GENERAL LIABILITY I EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR .WS521367 6124/2022 5/24/2023 DAMAGE TO RENTED 100,000 X PREMI E Ea occurrence $ MED EXP(Any one person) $ 6,000 i PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X- POLICY n JE � LOC PRODUCTS-COMPIOP AGG $ 2,000,000 OTHER: $ B AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 5,000,000 .. Ea accident $ ANY AUTO ALF5450129-02 5/24/2022 5124/2023 BODILY INJURY Perperson) $ OWNED SCHEDULED AUTOS ONLY X AUTOS yA�J p BODILY INJURY Per accident $ AUTOS ONLY AUTOS ONLY PPeOraocldentDAMAGE $ $ UMBRELLA LIAB OCCUR y EACH OCCURRENCE $ EXCESS LIAO CLAIMS-MADE AGGREGATE $ DED " RETENTION$ �i $ C WORKERS COMPENSATION X PERSTA OR H Y "AND EMPLOYERS'LIABILITY - 1,000,000 ANY PROPRIETORIPARTNERIFXFCUFI I'IVE ❑ MWC014972004 5/23/2022 5/23/2023 E.L.EACH ACCIDENT $ % CERIMEMBEREXCLUDED? NIA (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ 1,000,000 If yes,describe under 1,000,000 DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ i DESCRIPTION OF OPERATIONS r LOCATIONS/VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is requiredl City of Seward is listed as Additional Insured with regards to the General Liability policy CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE City of Seward THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. PO Box 167 Seward,AK 99664 AUL THORIZED REPRESENTATIVE ACORD 25(2016103) ©1988.2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD Proposal Price Company Name: SewardCityTours, LLC. Street Address: 32981 Myrtlewood Circle Seward, AK 99664 Mailing Address: PO BOX 2031 Seward, AK 99664 Telephone: 907-231-5773 Project Name: Seasonal Transportation Services Contract Total Proposal Price: $827,280.00 The above Proposal Price includes the following: -All services described in the bid packet based on the provided cruise ship schedule. If additional hours are required, or the cruise ship schedule has unexpected changes, additional charges will be incurred at a rate of $80/hr. -Payment terms: 25% of total Proposal Price ($206,820.00) due thirty days after the execution of contract with the City of Seward. The remaining balance ($620,460) to be billed in four installments ($51,705.00/payment) during operating months (June, July, August, September) of each contract year (2024,2025,2026). Company Name SewardCityTo_-urs,_LLC Title Owner Printed Name Jonah Swiderski Date March 18, 2023 Signature 4ZXVA_' 166 a� REQUEST FOR PROPOSAL SEASONAL TRANSPORTATION SERVICES FOR CRUISE SHIP PASSENGERS March 7, 2023 City of Seward PO BOX 167 Seward,Alaska 99664 Contracting Officer Jason Bickling, Community Development Director Phone: 907-224-4048 abicklingkcityofseward.net Announcement: February 21,2023 Solicitation of RFP: March 7,2023 Last Day to Submit Questions/Clarifications: March 14,2023 @ 3:OOpm Proposals Due: March 21,2023 @ 3:OOpm City Clerk's Office Public Opening: March 21,2023 @ 3:OOpm City Clerk's Office Proposal Evaluation March 23,2023 @ 1:OOpm Seward City Council Chambers 167 Table of Contents ADVERTISEMENT FOR PROPOSALS 1 PROJECT OVERVIEW 2 PROPOSAL INSTRUCTIONS 4 - SIGNATURE REQUIREMENTS - MODIFICATION AND WITHDRAWAL OF PROPOSAL - ALASKA HIRE - CORRECTIONS - AWARD OF CONTRACT - DISQUALIFICATIONS OF PROPOSALS - REJECTION OF PROPOSALS - CONTRACT AND WARRANTY - SUBMITTING MORE THAN ONE PROPOSAL - DEFAULTING PROPOSAL - PROPOSAL ERROR AND OMISSIONS - ANTICIPATED SCHEDULE PROPOSAL OFFERING FORM 6 TERMS AND CONDITIONS 2.1 INDEMNIFICATION 7 2.2 LICENSES 7 2.3 NEWS RELEASE 7 2.4 DISPOSITION OF PROPOSALS 7 2.5 INSURANCE REQUIREMENTS 7 2.6 SIGNING 8 2.7 CHANGES IN SCOPE 9 2.8 CANCELLATION OF THE AWARD 9 2.9 CONFIRMATION 9 2.10 EXAMINATION OF CONTRACT DOCUMENTS 9 2.11 EXAMINATION OF TRANSIT ROUTE AND TERMINAL SITES 10 2.12 EXAMINATION OF RIDERSHIP AND CRUISESHIP SCHEDULES 10 2.13 CONFIDENTIALITY 10 168 2.14 PROPOSAL FORMAT AND CONTENT 10 2.15 QUESTIONS RECEIVED PRIOR TO OPENNG PROPOSALS 11 2.16 ADDENDA 11 2.17 PROPOSER QUALIFICATIONS/SUBMITTAL REQUIREMENTS 11 2.18 PROPOSAL EVALUATION CRITERIA 12 2.19 SELECTION PROCESS 13 2.20 BID BOND 13 2.21 CLAIMS AND DISPUTES 14 Appendix Documents A. Shuttle Maps B. 2022 Cruise Ship Dockings(Actual) C. 2023 Cruise Ship Dockings(unconfirmed and incomplete) D. SAMPLE Professional Services Agreement E. ADA Standards F. Non-Collusion Affidavit 169 PUBLIC NOTICE Request for Proposals City of Seward, Seward Alaska The City of Seward,Alaska requests proposals for A SEASONAL TRANSPORTATION SERVICES CONTRACT DESCRIPTION OF WORK: The City of Seward is requesting proposals from qualified proposers to provide transportation services to cruise ship passengers, other visitors and the public,between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot,the downtown business district,and the Seward Boat Harbor during the 2024-2026 summer tourism seasons (Cruise Ship Schedule TBA: early May—late Sept). Proposal requirements may be examined and are available beginning March 7, 2023 by contacting Community Development Director Jason Bickling at 907-224-4048 or abicklingkcityofseward.net. Sealed written responses must be delivered in person or by courier service to the City Clerk's Office. Proposals must be received no later than 3:00 p.m. on March 21, 2023. The public opening will be at 3:00 pm on March 21, 2023 in Council Chambers. Late proposals will not be accepted. Faxed or electronically submitted proposals will not be accepted. All questions relating to the proposal process should be directed to the Community Development Office at (907)224-4048 or abicklingkcityofseward.net. Each envelope shall be clearly marked with: "RFP FOR A SEASONAL TRANSPORTATION CONTRACT." Sealed proposals must be received prior to 3:00pm ON MARCH 21,2023. The selection of a qualified contractor will be at the sole discretion of the City of Seward,and the City reserves the right to reject any and all proposals or not to award a contract if deemed in the best interest of the City. This solicitation does not commit the City of Seward to pay any cost incurred in the preparation of the proposal or to award any contract. Dated this 215t day of February,2023 Jason Bickling, Community Development Director Posted 2/21/2023 Post Office City Hall Harbormaster Office Library Seward Journal 02/21/2023 170 PROJECT OVERVIEW The City of Seward intends to continue to provide seasonal transportation system for passengers of cruise ships and other visitors to the City of Seward between the Dale Lindsey Cruise Ship Terminal,the Alaska Railroad Depot, and city commercial districts for the 2024-2026 Cruise Ship Seasons (from mid-May through the end of September with the possibility of additional days for outlying late ship days).The length of this contract would be 3 years with the option of two 3-year extensions. This project is intended to facilitate the flow of visitors around the City of Seward during the summer months to maximize the Seward experience and provide a means to assist cruise passengers transport their luggage between the Dale Lindsey Cruise Ship Terminal and the Alaska Railroad Depot. Transportation shall be by bus, shuttle, trolley, carriage,or other similar transportation vehicle (hereinafter"coach" or"coaches"). Three components comprise the transportation services: the base transportation route, the secondary transportation route, and ground support. The base transportation route shall start at the Seward Cruise Ship Port and follow a loop through the city that includes stops at the Alaska Railroad depot, Seward Military Resort, Seward Chamber of Commerce, Kawabe Park,the Alaska Sea Life Center,the downtown business district,Seward Boat Harbor,and returns to the Seward Cruise Ship Port.The transit route shall be as follows:beginning at Port Avenue Dale Lindsey Cruise Ship Terminal travel west, stop at the Alaska Railroad Depot, turn right from the Depot traveling west to turn right(north)on Third Avenue to make the farthest north stop at the Seward Military Resort on Dimond Ave,rejoining Third Avenue traveling south to the Seward Chamber of Commerce Visitor Center, then south along Third Avenue and turning left onto Port Avenue,then right on Fourth Avenue,then right on C Street,then left onto Third Avenue traveling south to Adams Street,turn left onto Adams Street, stop at Kawabe Park bus stop,traveling east on Adams Street turn right onto Forth Avenue and travel south one block and turn right onto Washington Street,then left on Third Avenue to end,turn left on Railway Avenue traveling east and stop at the Alaska SeaLife Center bus loading area, continue following Ballaine Boulevard,turn right on Fourth Avenue,stop at the City Harbormaster's Office bus loading area,continue north on Fourth Avenue, turn right on Port Avenue and end at the Dale Lindsey Cruise Ship Terminal. A map of the base transportation route is attached as Appendix A. The City reserves the right to make modifications to the stops as needed. The base transportation route schedule shall be from 8:00 a.m.until 7:00 p.m.on cruise ship days and 10:00 a.m. to 7:00 p.m. on non-cruise ship days and will run approximately every half-hour, seven days a week for the period stated above.(2022 Cruise Ship Dockings Appendix B;Tentative 2023 Cruise Ship Dockings Appendix C) Two transportation vehicles shall be required to be in operation at all times when a cruise ship is in the harbor, with at least one vehicle being ADA compliant (ADA Standards 49 CFR 38.21-29 Appendix E).Three or four vehicles may be needed if two or more cruise ships are in the harbor. Only one transportation vehicle shall be required to be in operation when there are no cruise ships in the harbor. Passengers shall be picked up and dropped off at pre-determined, designated areas along the transit route set forth above. Coach drivers must abide by City of Seward traffic patterns and obey traffic laws at all times. Stops at undesignated areas,"whistle stops" and any stops in traffic lanes are prohibited. City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 2 of 17 171 The supplemental transportation route consists of round trips between the Dale Lindsay Terminal and the Alaska Railroad Depot, and shall run from 8:00 AM until 10:00 AM and from 11:00 AM until 12:00 noon on days when cruise ships are docked at the Terminal. A single vehicle covers this route, and must have passenger and luggage capacity. The 8:00 AM -10:00 AM period is a peak demand time when most passengers are disembarking, and 11:00 AM-12:00 PM is a peak demand time as the Alaska Railroad Coastal Classic arrives and disembarks passengers.On high passenger count days an additional vehicle will be need to cover this route;on lower count days one of the two vehicles specified in the base transportation route may perform this function. High passenger count days are days where ships carrying more than two thousand passengers are docked. The third component is ground support.This service requires one person at the Dale Lindsay Terminal from 8:00 AM until 10:00 AM on high passenger count days. This person will coordinate with shuttle drivers, organize and direct passengers to the correct bus embarkation area according to their destination,and work with the terminal operator to minimize passenger waiting times and traffic congestion. The City recognizes that customer demand, cruise ship schedule changes and contractor experience will dictate potential in-season amendments to the schedule and route. Deviation from the proposed designated pick-up, drop-off areas and transit routes shall be permitted only with prior approval from the Contracting Officer. The successful proposer shall provide a sufficient number of coaches to meet demand and ensure the efficient movement of passengers without undue delay, skilled drivers with proper certification and necessary licenses necessary to fill the required schedules of operation, all fuel, supplies, and all other personnel considered necessary to meet and fulfill the terms of the Contract. The successful proposer will be responsible for the maintenance and care of each vehicle provided. The service provider will be responsible for working with the Contracting Officer to determine the best route to fit the schedule for operation, the needs of passengers, and fulfilling the daily ridership reports to City administration. City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 3 of 17 172 PROPOSAL INSTRUCTIONS Signature Requirements.All proposals must be signed. A proposal may be signed by an agent only if she or he is an officer of a corporation or LLC authorized to sign contracts on its behalf, a member of a partnership,or is properly authorized by a power of attorney or equivalent document.The name and title of the individual(s) signing the proposal must be clearly shown immediately below the signature. By signing the proposal, a proposer certifies that he/she or it is in compliance with: a)the laws of the State of Alaska; b) the applicable portion of the Federal Civil Rights Act of 1964; c) the Equal Employment Opportunity Act; d)the Americans with Disabilities Act of 1990; and e) all terms and conditions set forth in this RFP; and that the proposal submitted was analyzed, computed, and decided independently, without collusion, under penalty of perjury; and that the offer will remain open and valid for at least 60 (sixty)days from the date of opening of proposals. Modification/Withdrawal of Proposals. A responding proposer may withdraw a proposal at any time prior to the deadline for submitting proposals by delivering to the City written notification of its withdrawal, signed by the principal or an authorized representative of the proposer.The same responding proposer may submit a new proposal prior to the deadline for submitting proposals. Modifications offered in any other manner, oral or written will not be accepted or considered. A submitted proposal cannot be changed or withdrawn after the deadline for submission,except for modifications requested by the City of Seward. Alaska Hire. The selected proposer shall exercise positive efforts to hire Alaskan residents to the extent reasonably practicable. Corrections. The submitted proposal may not contain any erasures, interlineations or other corrections unless each such correction is suitably authenticated by affixing in the margin immediately opposite the correction,the signature of the person or persons signing the proposal. Award of Contract. The award of the Contract, if made by the City of Seward, will be made to the qualified,responsive,and responsible proposer submitting the successful proposal.The City of Seward will determine in its own discretion whether a proposer is responsive,responsible, and qualified to perform the Contract,and which proposal is in the best interest of the City of Seward, and will determine whether it is in the best interests of the City to accept a proposal.This proposal will be selected in accordance with these Instructions and Seward City Code Title 6 (Purchasing, Contracts and Professional Services). Disqualification of Proposers.The proposer shall submit non-collusion affidavits to the City from and by the proposer and all Subcontractors and Suppliers at time of submitting the proposal. If there is reason to believe that collusion exists among the proposers or between a proposer and another person or entity,none of the proposals of participants in such collusion will be considered. Rejection of Proposals. The City of Seward reserves the right in its sole and absolute discretion to reject any or all proposals,waive any informalities or irregularities in the procurement process, and/or not make an award if the City of Seward deems such action to be in the best interest of the City of Seward. City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 4 of 17 173 The City of Seward also reserves the right to reject any proposal which is non-responsive, incomplete, obscure, or irregular; any proposal which omits a price on any one or more items for which prices are required; any proposal in which unit prices are unbalanced in the sole opinion and discretion of the City of Seward; and any proposal from proposers who have previously failed to perform properly or to timely complete contracts of any nature. Contract and Warranty.A sample contract which the successful proposer shall be required to execute is included in the Contract Documents and must be carefully examined by the proposer prior to submitting a proposal. The Contract shall be executed in duplicate originals. Proposers Interested in Submitting More Than One Proposal. No person, firm, or corporation shall submit more than one proposal for the same work. A person or business entity that has submitted a "sub- proposal" to a proposer,or that has quoted prices or materials to a proposer,is not thereby disqualified from submitting a"sub-proposal" or quoting prices to other proposers or from submitting a prime proposal. Defaulting Proposer. If any proposer whose proposal is accepted, fails neglects or refuses to furnish the required worker's compensation and or other insurance certificates or policies,or to execute the Contract in a timely manner, such proposer shall not be awarded the Contract, and or shall be declared in default. The City may then utilize the selection criteria defined in the Contract Documents to select another successful responsive proposer and deliver a notice of acceptance of proposal to an alternate proposer. Proposer's Errors and Omissions. A proposer's claim of error in its proposal will not be considered by the City unless such claim is made to the City in writing within twenty-four(24) hours after the deadline for submitting proposals, together with all supporting evidence of the claim, including cost breakdown sheets. Relief may be granted only at the City's discretion, and in such event only for clerical errors. ANTICIPATED PROJECT SCHEDULE MILESTONES Announcement: February 21,2023 Solicitation of RFP: March 7,2023 Last Day to Submit Questions/Clarifications: March 14,2023 @ 3:00pm Proposals Due: March 21,2023 @ 3:00pm City Clerk's Office Proposal Evaluation March 23,2023 @ 1:00pm Seward City Council Chambers City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 5 of 17 174 PROPOSAL OFFERING FORM In compliance with this Request for Proposal, the undersigned acknowledges that I have read and understand all the conditions imposed herein and offer and agree to furnish the services in accordance with the information furnished below. Name of Firm: Address: City: State: Telephone: Federal ID: State D: Name: Signature: Title: Date: City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 6 of 17 175 Section 2 TERMS AND CONDITIONS By submitting a proposal, Contractor agrees to the following terms: 2.1 Liability and Indemnification To the fullest extent permitted by law, the Contractor shall defend, indemnify and hold harmless the City, its officers, and employees from and against any and all loss, expense, damage, claim, demand,judgment,fine,charge,lien,liability, action,cause of action, or proceedings of any kind whatsoever (whether arising on account of damage to or loss of property, or personal injury, emotional distress or death) arising directly or indirectly in connection with the performance or activities of the Contractor hereunder, whether the same arises before or after completion of the Contractor's operations or expiration of this Agreement or Contract, except for damage, loss or injury resulting solely from the City's gross negligence or willful misconduct. 2.2 Licenses The successful Contractor shall have and maintain all required local, state and federal licenses, including a valid State of Alaska Business License,meet all local, state, and federal codes, and if a Corporation or Limited Liability Company, must be registered in Alaska. In addition, the Contractor must provide a Kenai Peninsula Borough Tax Compliance Certificate prior to the issuance of the Notice to Proceed. A City of Seward Business License is required prior to award of contract. 2.3 News Release News releases pertaining to the award resulting from the RFP shall not be made without prior written approval of the City of Seward. 2.4 Disposition of Proposals All materials submitted in response to this RFP become the property of the City of Seward and will become public record after the evaluation process is completed and an award decision made. Responses to this RFP will not be open for public review until the City of Seward decides to pursue a contract and that contract is awarded. 2.5 Insurance Requirements. The following are minimum standards. I . Workers' Compensation Insurance: A. Statutory Compensation Coverage B. Coverage B Employers Liability with limits of not less than: • $100,000 Bodily Injury by Disease per Employee City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 7 of 17 176 • $500,000 Bodily Injury by Disease Aggregate • $100,000 Bodily Injury by Accident 2. Automobile Liability Insurance: A. Minimum Limits of Liability: • $1,000,000 Limit B. Coverages: • Owned Automobile,if any • Non-Owned Automobile • Hired Automobile 3. General Liability Insurance: A. Minimum Limits of Liability: • $1,000,000—Per Occurrence • $1,000,000—Annual Aggregate • $1,000,000—Annual Aggregate applying to Products/Completed Operations B. Coverages: • Premises and Operations Bodily Injury and Property Damage • Personal&Advertising Injury • Blanket Contractual • Products and Completed Operations Named as Additional Insured: The City of Seward and its employees. The additional insurance coverage is limited to insured claims arising out of the Contractor's negligence or the negligence of those for whom the Contractor is responsible, excluding coverage for the Additional Insureds' separate or independent negligence. The Contractor shall procure and maintain during the life of this Agreement, Commercial General Liability Insurance on an "occurrence basis" with limits of liability not less than $ 2 Million per occurrence and $2 Million aggregate combined single limit, personal injury,bodily injury and property damage. Contractor's policy(ies) shall be primary insurance to any other valid and collectible insurance available to the Owner and all Insured Parties with respect to any claim arising out of this contract. The Contractor will provide Owner and all Insured Parties with thirty (30) days advance written notice of cancellations,non-renewals or deduction in limits or coverage or other material change. Contractor is responsible for payment of insurance deductibles. If Contractor is self-insured, a Certification of Self-Insurance must be attached. 2.6 Signing No agreement shall be binding upon the City until the Contract has been completely signed by the successful Contractor and, following approval by the City Council and the City Manager. Failure City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 8 of 17 177 to sign and return the required Contract, together with all proof of insurance and documentation required by the Contract in a timely manner,may be just and sufficient cause for the cancellation of the award. The City may require execution of a form verifying the signatory's authority to execute the document. 2.7 Changes in Scope The Owner may at any time, by written order, make changes within the general scope of this Contract in the work and service to be performed.If any such changes cause an increase or decrease in the Contractor's cost of,or the time required for,the performance of this Agreement,an equitable adjustment shall be made, and the Contract modified in writing accordingly. If the Owner and Contractor fail to agree upon this adjustment to be made, the Owner reserves the right to solicit bids from other vendors for the performance of the additional work. 2.8 Cancellation of the Award The City reserves the right to cancel the award at any time before the contract has been fully signed by all parties. 2.9 Confirmation Any proposer who desires confirmation that its proposal has been received by the City Clerk shall submit with its proposal a separate acknowledgement of receipt for the City Clerk to initial and stamp with the date and time received, and shall print or type the name,position and telephone or fax number of the person who will accept, at the proposer's expense, a faxed or emailed confirmation of receipts. The City will not confirm receipt of a proposal in any other manner. 2.10 Examination of Contract Documents It shall be the responsibility of the proposer to prepare its proposal consistent with the City of Seward Agreement for Season Transportation Services for Cruise Ship Passengers RFP. The proposer,whether individual,joint venture,corporation or LLC, should carefully examine the Agreement. Concerns about possible ambiguities,contradictions or defects in the form of contract,must be made in writing and received by the Contracting Officer at least seven(7)days before the deadline for submitting proposals. This will allow time to issue any necessary amendments. It will also help prevent the opening of a defective solicitation and exposure of a proposer's bid. Protests based on any omission or error,or on the content of the solicitation,will not be allowed if these defects have not been brought to the attention of the Contracting Officer, in writing, at least seven(7)days before the deadline for submitting proposals. The proposer should become fully aware of the nature of the work and the conditions likely to be encountered in performing the work. If a Proposer finds a discrepancy,error,or omission in this document they are instructed to contact the Contracting Officer listed on the cover page,who will send written clarification to all prospective Proposers and posted on the City of Seward website. All City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 9 of 17 178 questions must be submitted to the Contracting Officer in writing via e-mail: jbickling@cityofseward.net,by the deadline listed on the cover page of this document. All answers will be issued in writing. 2.11 Examination of the Transit Route and Terminal Sites The proposer shall be responsible for examining the site of the proposed transportation route and terminal sites to fully investigate and acquaint himself or herself with all conditions relating to the work and labor, so that she or he may fully understand the full circumstances, accessibility, difficulties,and other conditions and restrictions pertaining to the execution of the work under this Contract. There is no pre-proposal conference or site(s)visit with City personnel planned. 2.12 Evaluation of Ridership and Cruise Ship Schedules It shall be the responsibility of the proposer to familiarize himself or herself with the Seward summer tourism industry and Seward cruise ship schedule for the summer 2024 season so that she or he may fully understand the full ridership needs pertaining to the execution of the work under this Contract.A copy of the summer 2022 cruise ship dockings is attached as Appendix B.A copy of the tentative summer 2023 (Incomplete and Unconfirmed) cruise ship schedule is attached as Appendix C.A 2024—2026 cruise ship schedule is not available,but the successful proposer will be expected to provide service for the entire cruise ship season. 2.13 Confidentiality Confidentiality of Proposals is governed by Seward City Code § 6.10.330.The City cannot assure that the contents will not inadvertently become public or be disclosed to other proposers prior to issuance of a Notice of Intent to Award.If the proposer includes proprietary information,it should be packaged separately in a sealed envelope marked as"Proprietary Information." If requested,the proposer shall defend the proprietary nature and non-release of such marked material. After the Notice of Intent to Award of the contract has been issued, all proposals will become public information. Regardless,the bid amounts will be public information. 2.14 Proposal Format and Content Proposals must be prepared in a clear and concise manner, describing, and demonstrating the proposer's ability to satisfy the requirements of this RFP. Emphasis should be concentrated on: 1. Conformance to the RFP instructions. 2. Responsiveness to the RFP requirements. 3. Completeness and clarity of content. City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 10 of 17 179 2.15 Questions Received Prior to Opening of Proposals All questions must be in writing and directed to the Community Development Director. The request must be received no less than seven(7)days prior to the deadline for submitting proposals (March 14,2023)no later than 3:00pm,requesting an interpretation or correction.The Community Development Director will determine if an addendum is required.A return email and contact name and number must be identified and included on all written questions. All questions from prospective proposers, and the corresponding responses,will be emailed to all who have asked to be placed on the bidder's list. 2.16 Addenda No oral change or oral interpretation of any provision contained in this RFP is valid whether issued during a conference or in other contexts or circumstances,unless confirmed in a written addendum. Written addenda will be issued when changes, clarifications or amendments to the proposal documents are deemed necessary by the Contracting Officer. If an amendment is issued,it will be in the form of an addendum and provided to all parties who were sent a copy of the RFP. The City will issue addenda by email.The City will take all reasonable measures to ensure that all recipients of RFP's receive addenda;however,potential proposers shall be responsible for ensuring they have, by the time of proposing,received all addenda.Respondents shall be required to confirm in writing, that they have received all addenda,when submitting their proposals.The City of Seward will not be responsible for any explanations or interpretation of the contract in any form except written Addenda. 2.17 PROPOSER QUALIFICATIONS AND PROPOSAL SUBMITTAL REQUIREMENTS To achieve a uniform review process and obtain the maximum degree of comparability, it is required that both Part One and Part Two of the proposals be organized in the manner specified. Proposals shall not exceed twenty-five (25) pages in length, excluding letter of transmittal, title page,index,letters of reference,resumes and table of contents or dividers. One page is defined as one side of a single-lined typed 8 x I V piece of paper. All proposals shall contain the following information: Proposal Package (Part One): 1.Detailed information pertaining to Section 2.18. 2.Valid Alaska business license number,expiration date,type of business 3. A City of Seward business license (available on the City's website) and Kenai Peninsula Borough registration to collect sales tax is required at the time of executing a contract with the City. 4. Corporate or LLC resolution authorizing the signature of commitment to the proposal. 5. Non-Collusion Affidavit(Appendix Document F) City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 11 of 17 180 Proposal Documents(Part Two): 1. The total proposal price. 2.Acknowledgement of addenda-if any. The Proposal Package and the Proposal Information shall be submitted in separate sealed envelopes clearly marked as "Proposal-Part One" and "Part Two. 2.18 PROPOSAL EVALUATION CRITERIA Evaluation and scoring of the proposals will be performed by a group of individuals representing the City of Seward. The City of Seward reserves the right to request oral interviews. The proposer with the highest total combined score may be invited to enter into final negotiations with the City of Seward for the purpose of the contract award. Proposals from proposers deemed responsible according to the factors set forth in Seward City Code section 6.10.135 will be graded according to the following criteria: Proposers will be graded according to the following criteria: Experience 30% Safety Record Information 10% Equipment Spec: Age, Quality, Condition, Capacity,ADA 20% Pricing Structure 30% Completeness of Application 10% A. Experience (30%) The proposer shall specifically cite their experience and operating history in the transportation industry. The proposer shall specifically cite any work of similar nature performed in the State of Alaska. The proposer shall provide evidence of personnel trained and experienced in commercial transportation services and having at least 2 (two)years' experience in the transportation and/or tourism industry. B. Safety (10%) Evidence of appropriate training and licenses are required, and safety records for the past three years will be considered. C. Equipment Spec:Age, Quality,Condition,Capacity,ADA (20%)The proposal shall include a detailed description of all vehicles and equipment necessary for providing the transportation services, specifying the vehicle year,make and model, and condition. The proposal shall describe maximum passenger capacity for each vehicle, and whether the vehicle meets ADA accessibility standards. The City desires to welcome all individuals and reduce barriers. A description should City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 12 of 17 181 be provided to discuss vehicle ability to carry or store luggage. Passengers should be able to bring their luggage aboard the vehicle or be offered an alternative means to transport their luggage between the Dale Lindsey Cruise Ship terminal and Alaska Railroad Depot. Additionally, if necessary, the successful proposer will need to provide a mechanism to store passenger luggage during arrival and departure intervals. The information provided shall disclose any corporate branding plans and/or plans to promote affiliated and/or unaffiliated businesses through advertising inside and outside of the vehicle. Describe how the vehicle will be marked and any wraps,themes and other descriptive, decorative or artistic features of the coaches used to clearly identify for the public the transportation service being provided. D. Proposal Price (30%) Price will be evaluated separately from the information in the Proposal Qualification Package.The proposal price shall be provided in a separate,sealed envelope labeled, "Proposal Information." Each proposer shall submit a proposal price that includes the total cost to complete the entire scope of the project. E. Completeness of Application (10%) The proposal will be complete and directions followed. 2.19 SELECTION PROCESS Each evaluator will add the point-values to arrive at a total score for each responsible proposer. The total score which each evaluator awards to a proposer will be added together to arrive at a total combined score (the sum of total scores by all evaluators) for each proposer. The City of Seward will make the final decision in its sole and absolute discretion as to selection of the Contractor.The City reserves the right to terminate negotiations with any proposer should the City of Seward decide it is in the City's best interest to do so. The City of Seward also reserves the right to reject any and all proposals 2.20 BID BOND Bids shall be accompanied by a bid bond from a surety company selected by the bidder,which is legally authorized to do business in the State of Alaska in the amount of$10,000. In lieu of a bid bond, a bidder may furnish a certified check or cash escrow in the face amount required for the bond. Such bid bond shall be submitted with the understanding that (1) it shall guarantee that the bidder will not withdraw his bid for 60 days following the opening of bids, and (2) if its bid is accepted,it will enter into the Contract with the City.Bid bonds will be returned to all bidders after the City and the selected bidder have executed the contract and the Payment and Performance Bond has been delivered to the City. City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 13 of 17 182 2.21 CLAIMS AND DISPUTES Venue for all claims and disputes under this agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. APPENDIX DOCUMENTS A. Transportation Route Map/Locations of stops on Route B. 2022 Cruise Ship Schedule C. 2023 Cruise Ship Schedule (not confirmed—additional trips pending) D. Sample Professional Services Agreement E. ADA standards 49 CFR 38.21-39 F. Non-Collusion Affidavit City of Seward Instructions to Proposer Transportation Services for Cruise Ship Passengers Page 14 of 17 183 Payment Funding Dates Adjusted: 25% Down Payment of$206, 820 for 2023 -2026 Contract %2 due 30 days after approval - $103,410 %2 due October 1, 2023 - $103,410 Invoiced 30 days prior Reasons for deposit prior to contract commencement: • Guarantee of service in order to hire drivers -we can pay them a stipend if for some unforeseen reason the contract gets canceled unexpectedly • Maintenance and repairs prior to the season. In 6 years of operation we have not had one day of disrupted service. This is largely due to extensive maintenance on the vehicles prior to the season beginning. In 2022 we spent$70K on repairs and maintenance on the fleet • We are committed to adding an ADA vehicle to the fleet for this contract. This way all vehicles regularly servicing the Free Shuttle Contract will be ADA vehicles. Inventory is extremely limited and if we find the right vehicle we will have to move on it before the start of the season. • For 2024 we will be updating our service to have the current QR code show guests in real time where the buses are - this is something the shuttle service has never been able to provide to riders during the summer months. We do not require an app download to do this. Development of the software and program require months of work prior to launch to ensure functionality. Payment for these developments will come from the funds provided by the down payment Our winters are spent actively improving our fleet and services. Service contracts for the Free Shuttle are greatly improved when we are able have additional funds from an upcoming contract to help facilitate these improvements. 184 Professional Services Agreement with Seward City Tours, LLC for Seasonal Transportation Services and Related Services This AGREEMENT, made and entered into this th day of , 2023 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and Seward City Tours, a limited liability corporation authorized to do business in Alaska, with offices located at 32981 Myrtlewood Circle, Seward, Alaska, hereinafter referred to as the "Contractor." WITNESSETH WHEREAS, the City of Seward wishes to enter into a contract with an independent contractor to provide transportation services for cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward boat harbor in Seward, Alaska, and WHEREAS, in response to a request for proposals, Seward City Tours, LLC submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit A — Seward City Tours, LLC proposal Exhibit B — City's request for proposals dated March 7, 2023 (collectively, "RFP"). 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall all mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean Assistant City Manager, and include any successor or authorized representative. Page 1 of 10 185 1.5 "Project" shall mean the transportation and other tasks related to the transportation of cruise ship passengers, crew and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward boat harbor in Seward, Alaska as further described in the RFP issued by the City of Seward on March 7, 2023. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. 3 year contract total is $827,280.00 ($275,760 per year) Payment Terms: 25% of total proposal price ($206,820) due October 1, 2023. The remaining balance ($620,460) to be billed in four installments ($51,705.00/payment) during operating months (June, July, August, September) of each contract year (2024, 2025, 2026). If additional hours are required, or the cruise ship schedule has unexpected changes, additional charges will be incurred at a rate of $801hr. 4.0 SCOPE OF SERVICES, 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 March 7, 2023 to provide professional services based on approved standards and instructions as specifically described in the same RFP. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all services described herein shall be as follows: Beginning early May 2024, and running the entire 2024, 2025, and 2026 tourist seasons (May 1 —September 30), concluding at the end of the tourist season 2026 cruise ship schedule, or other date agreed to by both parties pursuant to section 26.2 of this agreement. Page 2 of 10 186 6.0 PERSONNEL/ORGANIZATION 6.1 Key Personnel. Work and services provided by the Contractor will be performed by: Jonah Swiderski and Yen Ly 6.2 Changes in Key Personnel. The Contractor shall give the City reasonable advance notice of any necessary substitution or change of key personnel and shall submit justification therefore in sufficient detail to permit the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. 7.0 STANDARD OF PERFORMANCE. The Contractor agrees to provide all required professional services to complete the project and any additions or changes thereto. The Contractor accepts the relationship of trust and confidence established between it and the City by this Agreement. The Contractor covenants with the City to furnish its best skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Contractor shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder required professional judgment and skill. In those cases, the Contractor agrees to adhere to the standards of the applicable profession. 8.0 TIMELINESS OF PERFORMANCE. Time is of the essence in this Agreement. Contractor's failure to meet any such deadlines or required performance may adversely imperil other contractual obligations of the City. If the Contractor fails to deliver the services by the first cruise ship docking, 2024, Contractor shall pay as liquidated damages and not as penalty $ 500 per day for each day after the first cruise ship docking, 2024 the services are not delivered. 9.0 COMPLIANCE WITH LAWS. The Contractor shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Contractor, the City, or the service which may be in effect now or during performance of the services. Contractor shall have a Seward and State of Alaska Business License. 10.0 INDEMNITY. The Contractor shall indemnify, defend, and hold and save the City, its officers, agents and employees harmless from any claims or liability of any nature or kind including costs and expenses (including attorneys' fees), for or on account of any and all legal actions or claims of any character whatsoever alleged to have resulted from injuries or damages sustained by any person or persons or property (including contract rights or intangible assets) and arising from, or in connection with, performance of this Agreement, and caused in whole or in part by Page 3 of 10 187 any negligent act or omission of the Contractor; provided, however, that this paragraph shall not be construed so as to require indemnification of the City from such claims, damages, losses, or expenses caused by or resulting from the negligence of the City. 11.0 INSURANCE. The Contractor understands that no City insurance coverage, including Workers' Compensation, are extended to the Contractor while completing the terms of this Agreement. The Contractor shall carry adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general commercial liability, automobile liability, professional liability, and property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Contractor shall not commence work under this Agreement or any work on any phase of the Project until the Contractor provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is an additional insured thereunder as respects liability arising out of or from the work performed by Contractor of City of Seward. The Contractor shall procure and maintain during the life of this Agreement, Commercial General Liability Insurance on an "occurrence basis" with limits of liability not less than $ 2 Million per occurrence and $ 2 Million aggregate combined single limit, personal injury, bodily injury and property damage. b. Contractor shall procure and maintain during the life of this Agreement Professional Liability- Errors and Omissions Insurance on an "occurrence basis" with limits of liability not less than $1,000,000 per occurrence. c. Contractor shall procure and maintain during the life of this agreement, Motor Vehicle Liability Insurance, including no-fault coverage with limits of liability not less than $1,000,000 per occurrence combined with single limit Bodily Injury and Property Damage. d. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials. e. The insurance coverage is primary to any comparable liability insurance carried by the City of Seward. f. The following shall be Additionally Insureds, The City of Seward, including all elected and appointed officials, commissioners and employees. Page 4 of 10 188 g. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies specified in the certificate. Upon request, Contractor shall permit the City to examine any of the insurance policies specified herein. Any deductibles or exclusions in coverage will be assumed by the Contractor, for account of, and at the sole risk of the Contractor. The minimum amount and types of insurance provided by the contractor shall be as set forth in the RFP issued by the City on March 7, 2023, subject to revision at the City's request in order to provide continuously throughout the term of the Agreement a level of protection consistent with good business practice and accepted standard of the industry. 12.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 13.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Contractor for services hereunder include full compensation for all work products and other materials produced by the Contractor and its subcontractors pertaining to this Agreement. 14.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Contractor agrees to defend, indemnify, and save the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Contractor or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Contractor, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 15.0 NONWAIVER. No failure of the City or Contractor to insist upon the strict perfor- mance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 16.0 SAFETY/PERFORMANCE. The Contractor shall perform the work in a safe and workmanlike manner. The Contractor shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. Page 5 of 10 189 17.0 SUSPENSION OR TERMINATION. 17.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Contractor a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Contractor and the City, offset by any amounts owed to the City. However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 17.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Contractor will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Contractor can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Contractor without further compensation. 17.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Contractor shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 18.0 EQUAL EMPLOYMENT OPPORTUNITY. The Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, marital status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Contractor shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard Page 6 of 10 190 to their race, color, religion, national origin, ancestry, age, or marital status. 19.0 NO ASSIGNMENT OR DELEGATION. The Contractor may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 20.0 INDEPENDENT CONTRACTOR. The Contractor shall be an independent contractor in the performance of the work under this Agreement, and shall not be an employee or agent of the City. 21.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Contractor shall pay all federal, state and local taxes incurred by the Contractor and shall require their payment by any other persons in the performance of this Agreement. 22.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Contractor. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF AGREEMENT. The Contractor shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 25.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 26.0 CHANGES IN SCOPE OF WORK, 26.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Contractor do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and/or omissions by the Contractor, will be done at the sole expense of the Contractor. 26.2 Changes in Scope of Work. The City or its representative may, at any time, by a written Change Order delivered to the Contractor, make changes to the scope of work, or authorize additional work outside the scope of work, Page 7 of 10 191 or the schedule for completion. 26.3 Compensation to the Contractor. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both,- b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Contractor for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Contractor of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0 LIMITATION OF FUNDS. 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Contractor to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall Page 8 of 10 192 be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward City Manager PO Box 167 Seward, Alaska 99664-0167 30.0 PERSONAL GUARANTEE. The proposal was submitted by, and this contract is with, Seward City Tours, LLC. By submission of the Single Member LLC Authorization Resolution, Jonah Swiderski warranted that he had authority to bind the limited liability company. In consideration for the initial payment, prior to performance, of $206,820, by initialing this paragraph and signing below, Mr. Swiderski personally guarantees performance of this contract and bears responsibility for breach of the Agreement. Mr. Swiderski knowingly waives any common law or statutory defense that Seward City Tours, LLC, is the only responsible party in the event of breach and agrees to be personally liable for any debt or damages due to the City in the event of breach. The personal guarantee survives any dissolution or other change to the limited liability company and any assignment or transfer of this contract, unless the City expressly agrees, in writing, to release, amend or alter the personal guarantee. Initial Date ( � �. �, 0�)_3 IN WITNESS ZEREOF, the parties have executed this Agreement. City of Seward Seward City Tours, LC By: Norm Regis By: nah rski Title: Interim City Manager T' e: Owner Date: Date: kT-,� 021 2uz ATTEST: Brenda Ballou, MMC City Clerk Page 9 of 10 193 • swir- Resolution 2023-067 A Resolution Of The City Council Of The City Of Seward, Authorizing The City Manager To Enter Into A Professional Services Agreement With Altman, Rogers, & Co For External Audit Services, And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-067 • Altman, Rogers & Co. Agreement • Resolution 2020-012 • Recommendation Letter From Carmen Jackson CPA 194 City Council Agenda Statement a Meeting Date: May 22, 2023 t! To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-067: Authorizing the City Manager to Enter Into a Professional Services Agreement with Altman, Rogers, & Co for External Audit Services, And Appropriating Funds Background and justification: The City of Seward has utilized Altman, Rogers, & Co as the External Audit Firm since 2019. Prior to 2019, BDO served as the City's External Audit provider. Over the past 4 years, Altman, Rogers, & Co has served the City well and no issues have occurred which would require the City to seek another provider. Altman, Rogers, & Co will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the disclosures, which collectively comprise the basic financial statements, of City of Seward as of and for the fiscal years ending December 31, 2023, 2024, and 2025, with two, one-year options to extend. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as budgetary comparison schedules, to supplement City of Seward's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Altman, Rogers, & Co is an Alaska based Certified Public Accounting (CPA) firm which provides auditing and accounting services to more dozens of governmental entities in the State of Alaska. The firm has branch locations in Anchorage, Soldotna, and Juneau and has been in practice in Alaska for over 35. They have assisted clients in preparing their Annual Comprehensive Financial Report and receiving this Certificate of Achievement in Excellence in Financial Reporting and as such, they are qualified to perform the City's audit. City Administration has consulted with Carmen Jackson, CPA regarding which firm is best suited to perform audit services for the City of Seward, and Altman, Rogers, & Co was recommended to continue the service. Please see the attached letter from Carmen Jackson. The following is a breakdown of the fees for the services we are proposing for the fiscal years ending December 31, 2023, 2024, and 2025, and two, one-year options to extend. The above fees are inclusive of out-of-pocket costs and include 2 federal and 2 state compliance programs being audited as major programs for compliance purposes. Each additional program will be $2,000. The fee assumes we will assist management with the preparation of the Annual Comprehensive Financial Report. 195 Audit Fieldwork 2023 $ 140,700 2024 $ 148,000 2025 $ 155,500 2026 $ 163,750 2027 $ 172,500 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 11.3 City Government and Finances 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: $ 140,700 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): x Budgeted Line item(s): 01000-1110-7000 $120,000 x Not budgeted 01000-1110-7000 $20,700 Not applicable Fund Balance Information Affected Fund (✓): x General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ 6,697,919 Finance Director Signature: Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation x Approve Res. Other: 196 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-067 A Resolution of The City Council of the City of Seward, Alaska, Authorizing The City Manager To Enter Into A Professional Services Agreement With Altman,Rogers,&Co For External Audit Services,And Appropriating Funds WHEREAS, The City of Seward issued a Request for Proposals in 2019 to obtain external audit services; and WHEREAS, Of the proposals received at that time, Altman, Rogers & Co. was selected as the most responsive bidder; and WHEREAS, Altman, Rogers & Co. has provided audit services for the City of Seward for the fiscal years 2019, 2020, 2021, and 2022; and WHEREAS, The quality of services provided by Altman, Rogers & Co. has been exemplary; and WHEREAS, The City of Seward desires to continue utilizing the services of Altman, Rogers & Co. for the provision of External Auditing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is authorized to enter into a Professional Services Agreement with Altman, Rogers & Co. for the Provision of External Audit Services for the fiscal years ending December 31, 2023, 2024, and 2025, with two one-year options to extend. Section 2. Funding in the amount of$20,700 is appropriated from General Fund reserves account number 01000-0000-3400 to the audit services line item number 01000-1110-7000 in addition to $120,000 previously budgeted. Section 3. This resolution shall take effect upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22na day of May, 2023. 197 Altman, Rogers CoCERTIFIED PUBLIC . ACCOUNTANTS May 10, 2023 Audit Committee or Mayor City of Seward P.O. Box 167 Seward, AK 99664-0167 Dear Audit Committee or Mayor, We are pleased to confirm our understanding of the services we are to provide for the City of Seward for the fiscal years ending December 31, 2023, 2024, and 2025, with two, one year options. Audit Scope and Objectives We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the disclosures, which collectively comprise the basic financial statements,of City of Seward as of and forthe fiscal years ending December 31, 2023, 2024, and 2025, with two, one year options. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as budgetary comparison schedules, to supplement City of Seward's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to City of Seward's RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be subjected to certain limited procedures, but will not be audited: 1) Management's Discussion and Analysis. 2) Budgetary comparison schedules. 3) Schedules of proportionate share of the net pension and the OPEB liabilities and contributions. 3000 C Street N. Suite 201 Anchorage,Alaska 99503 Phone 907-274-2992 Fax 907-274-2993 Offices in Juneau and Soldotna A Professional Corporation 198 City of Seward Page 2 of 10 We have also been engaged to report on supplementary information other than RSI that accompanies City of Seward's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole in a separate written report accompanying our auditor's report on the financial statements or in a report combined with our auditor's report on the financial statements. 1) Schedule of expenditures of federal awards and related notes. 2) Schedule of state financial assistance and related notes. 3) Additional supplementary information. In connection with our audit of the basic financial statements, we will read the following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed,we conclude that an uncorrected material misstatement of the other information exists;we are required to describe it in our report. 1) Introductory section. 2) Statistical section. The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor's report that includes our opinions about whether your financial statements are fairly presented, in all material respects, in conformity with GAAP, and report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate,they would influence the judgment of a reasonable user made based on the financial statements. The objectives also include reporting on: • Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. • Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and conditions of federal and state awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. 199 City of Seward Page 3 of 10 Auditor's Responsibilities for the Audit of the Financial Statements and Single Audit We will conduct our audit in accordance with GAAS; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; the provisions of the Uniform Guidance; and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, and will include tests of accounting records, a determination of major program(s) in accordance with Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation of the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect auditors to provide reasonable assurance of detecting waste or abuse. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements or noncompliance may not be detected by us, even though the audit is properly planned and performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropriate level of management of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention.We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential.We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement. 200 City of Seward Page 4 of 10 We may, from time to time and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures—Internal Control We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal and state award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, and the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Audit Procedures—Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of City of Seward's compliance with provisions of applicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. 201 City of Seward Page 5 of 10 The Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with federal and state statutes, regulations, and the terms and conditions of federal and state awards applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of City of Seward's major programs. For federal and state programs that are included in the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as being subject to audit.The purpose of these procedures will be to express an opinion on City of Seward's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance and the State ofAlaska Audit Guide and Compliance Supplement for State Single Audits. Other Services We will assist in the preparation of the federal data collection form, financial statements, schedule of expenditures of federal awards, schedule of state financial assistance, and related notes of City of Seward in conformity with accounting principles generally accepted in the United States of America and the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards.We will perform the services in accordance with applicable professional standards.The other services are limited to the preparation of the federal data collection form previously defined.We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities for the preparation of the federal data collection form and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the federal data collection form, and that you have reviewed and approved the preparation of the federal data collection form and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them. Responsibilities of Management for the Financial Statements and Single Audit Our audit will be conducted on the basis that you acknowledge and understand your responsibility for(1)designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles; for the preparation and fair presentation of the financial statements, schedule of expenditures of federal awards, and schedule of state financial assistance, and all accompanying information in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal and state statutes), rules, and the provisions of contracts and grant agreements (including award agreements).Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information. 202 City of Seward Page 6 of 10 You are also responsible for making drafts of financial statements, schedule of expenditures of federal awards, schedule of state financial assistance, all financial records, and related information available to us and for the accuracy and completeness of that information (including information from outside of the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit underthe Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits; (3) additional information that we may request for the purpose of the audit; and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements; schedule of expenditures of federal awards; schedule of state financial assistance, federal and state award programs; compliance with laws, regulations, contracts, and grant agreements; and related matters. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements that we report. Additionally, as required by the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, it is management's responsibility to evaluate and monitor noncompliance with federal and state statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings should be available at the start of our audit. 203 City of Seward Page 7 of 10 You are responsible for identifying all federal and state awards received and understanding and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards schedule of state financial assistance (including notes and noncash assistance received, and COVID-19-related concepts,such as lost revenues, if applicable) in conformity with the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. You agree to include our report on the schedule of expenditures of federal awards, schedule of state financial assistance in any document that contains, and indicates that we have reported on, the schedule of expenditures of federal awards, and schedule of state financial assistance. You also agree to include the audited financial statements with any presentation of the schedule of expenditures of federal awards, and schedule of state financial assistance that includes our report thereon or make the audited financial statements readily available to intended users of the schedule of expenditures of federal awards, and schedule of state financial assistance no later than the date the schedule of expenditures of federal awards, and schedule of state financial assistance is issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1) you are responsible for presentation of the schedule of expenditures of federal awards and schedule of state financial assistance in accordance with the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits; (2) you believe the schedule of expenditures of federal awards and schedule of state financial assistance, including its form and content, is stated fairly in accordance with the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards and schedule of state financial assistance. You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon or make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon.Your responsibilities include acknowledging to us in the written representation letter that(1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies.You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions for the report, and for the timing and format for providing that information. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. 204 City of Seward Page 8 of 10 At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management's responsibility to electronically submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditor's reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of the audit period. We will provide copies of our reports to governing body of City of Seward; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Altman, Rogers & Co. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to the governing body of City of Seward or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit,to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested,access to such audit documentation will be provided under the supervision of Altman, Rogers & Co. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the Cognizant Agency, Oversight Agency for Audit, or Pass-through Entity. If we are aware that a federal and state awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Grant Todd is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. The following is a breakdown of the fees for the services we are proposing for the fiscal years ending December 31, 2023, 2024, and 2025, and two, one year options: Audit Fieldwork 2023 $ 140,700 2024 $ 148,000 2025 $ 155,500 2026 $ 163,750 2027 $ 172,500 The above fees are inclusive of out-of-pocket costs and include 2 federal and 2 state compliance programs being audited as major programs for compliance purposes. Each additional program will be $2,000. The fee assumes we will assist management with the preparation of the Annual Comprehensive Financial Report (ACFR). 205 City of Seward Page 9 of 10 Our fee for these services will be at our standard hourly rates including out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) will not exceed the amounts listed on the previous page. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary,we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. Reporting We will issue written reports upon completion of our Single Audit. Our reports will be addressed to governing body of City of Seward. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or if necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or we may withdraw from this engagement. The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters will state that (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and (2)the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance.The Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits report on internal control over compliance will state that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Both reports will state that the report is not suitable for any other purpose. We appreciate the opportunity to be of service to City of Seward and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the attached copy and return it to us. Very truly yours, ALTMAN, ROGERS & CO. Grant Todd, CPA Principal 206 City of Seward Page 10 of 10 RESPONSE: This letter correctly sets forth the understanding of City of Seward. Management signature: Title: Date: 207 l� J Sponsored by: Meszaros CITY OF SEWARD, .•tI.ASKA RESOLUTION 20211-012 A RESOLUTION OF THE CITY COUNCIL OF TIM CITY OF SEWARD, ALASKA, APPROVING A CONTRACT FOR EXTERNAL AUDIT SERVICES WITII ALTh1AN, RO ERS & CO. FOR THE YEARS 2019, 2020, AND 2021, AND I?\TENDING 7"Ii f DEADLINE FOR COMPLETION i WI1F,REAS, the City of Seward issued a Regricst f01- Proposals (RFP) for external audit services and advertised in ncwspapers of local circulation in Seward and Anchorage in accordance with competitive scaled bid procedures; and WHEREAS, in addition to newspaper advertising, the RFP was sent to four prospective auditing firms doing business in Alaska; and WHEREAS, three qualified and resp()nsil e proposals were received in response to the request for proposals; and i WHEREAS, proposals "'cre scored can the basis of four criteria witli a total available points of 100, including: 1) firm's expertise, qualifications, and technical proposal; 2) organization experience and audit approach; 3) enga cement personnel experience and qualifications; and 4) bid price; and WHEREAS, of the three proposals, Altman, Rogers & Co. received the highest overall score, scoring 100 out of' 100 available points; and WHEREAS, the ovcra11 1)id to coziduct tlic City"s audit was lower by Altman, Rogers & Co. (three-year average cost of S90,078 vs. $142.7 3 for BDO and S 112,044 for Elgee Rehfeld), � the hourly cost by Altman, Rogers & Co. was lower (`"1 191iour Altman, Rogers & Co. vs. $164 Tour BDO and S 1441hour Elgee Rehfeld), and Altman, Rooers & Co. estimated 720 annual 110ur-s, 11DO estimated 1,377 annual hours and Elgee Rehfeld estimated 645 annual hours; and VI 1 I E REAS, the finance department has experienced a significant number of vacant positions during the five months, hindering the ability of City staff to prepare ter the annual audit ` in the usual timeframe. jl NOW, T I I E REFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE y CITY OF SEWAItD, ALASKA that:. See(ion 1. The City Manager- is lrcrebv authorized and directed to execute an agreement %vith Altman, Rogers & C'o. in substajrtirilly the form as attached hereto}, to pro%ide external audit services to the City of Seward for 2019- 2(.)2U acid 2021, with options to extend for up to two additional years at the discretion of the city 'i 208 r CITY OF SEWARD,ALASKA RESOLUTION 2020-012 ICE Section 2. Altiaiaii, Rogers & Co. three-yeaar Ice is 8288? 5 ($93,325 for 2019, $96,025 for 2020, arid $98.885 for- 2021). Section 3. The council waives the requiremet7t for the coiiij)Iction of the audit within 120 days following the close of the first vcsar. with the understandii7- it wlII be completed within 160 days following the close of the first year ciid, acid shall be presented ter the Council at a public meeting within thirty(30) days utter completion ofthe audit. Section 4. The ain( Lmt of$1 15.000 was previously appropriated for the audit of2019 and no further approl)riation is rek1wired to audit Services line item no. 1)I000-1 1 10-7000. Section 5. This resolution shall take effect ininrcdiatcly Ltpcora adoption. PASSED AND APPROVED by the City Cow-icil of the City of Seward, Alaska, this 10`h day of February, 2020. rTE%10tE W f isty Terry .Ma , APES: Butts, Baclaan, McClure, Osenga, Crites, Terry NOES: None ABSENT: Seese ABSTAIN: None ATTEST: Brenda J. Blillou. y11\1C City Cle��.� OF S�� *, •G P 0 , (Cit}�Se �'+��a v 1,0 ;� SEAL r � i r •, TF........�..�5,�,'� OF A'� 209 Council Agenda Statement Meeting Date: February 10, 2020 Through: Scott Meszaros, City Manager From: Tammy Stromberg, Finance Director 1 Agenda Item: External Audit Contract BACKGROUND & JUSTIFICATION: The City of Seward received three proposals for external audit services for years 2019,2020,and 2021 with options for up to two additional years. Proposals were received from Altman, Rogers & Co. ("Altman"), BDO and Elgee Rehfeld, and all proposals were found to be responsive. A review committee of three members separately evaluated proposals based on criteria provided to the City Council in advance of the solicitation of requests for proposal: 1)Firm Expertise,Qualifications and Technical Proposal (25%); 2) Organization Experience and Audit Approach (25%); 3) Personnel Experience and Qualifications (25'0); and 4)Fee Proposal (25%). The reviewers scored each criteria for a total possible points of 100. The firm of Altman,Rogers&Co.received the highest overall score of 100 points;BDO received 62.7 points and Elgee Rehfeld received 35.6 points. The scores below indicate Altman, Rogers & Co. received the highest overall score on all criteria, BDO rated lowest on the fee. ALTMAN 800 ELGEE REH11LO Firm Expertise,Qualifications,Technical Proposal 25.0 16.7 2.5 Organization Experience,Audit Approach 25.0 16.7 2.5 Personnel Experiencelaualifications 25.0 1 12.5 9.2 Fee 25.0 16.8 21.4 Total Score: 100.0 62.7 35.6 BDO is the incumbent firm, having provided auditing services to the City for more than 10 years. However, auditor independence may be diminished by extending the term of audit services by another 3-5 years. Their proposal was strong, comprehensive, and demonstrates considerable experience auditing governmental entities similar in size and scope to the City of Seward. Comparables include cities of Cordova and Sitka (both have city-owned hospital and clinic), Kenai (city and borough), Palmer, Homer, and more complex entities such as the Municipality of Anchorage. BDO leads in the utility and healthcare industries in Alaska.Altman's proposal was also strong with comparables such as City of Kodiak and Kodiak Island Borough, the cities of Nome and Kotzebue as well as Metlakatla Power and Light.Altman's experience with health entities includes Metlakatla Indian Community and Tanana Chiefs Conference. Experience with hospitals is less of factor at this time because the Seward Community Health Center has awarded their audit to Elgee Rehfeld. Elgee Rehfeld also submitted a proposal. It has audited the City and Borough of Juneau for 20 years,audits the Haines Borough, some state agencies and has deeper health-oriented experience than Altman but lacks a breadth of experience with municipalities.Elgee Rehfeld also states it is their policy not to include their estimated initial audit learning time in the proposal as they consider the hours incurred learning about the client's operations 2M and controls as an investment in the future relationship. All firms prepare comprehensive annual financial reports for their clients. The BDO and Altman proposals detailed a more thorough understanding of the scope of work, especially as it relates to the challenges associated with the City's use of multiple electronic systems as well as the migration of data across systems. Both BDO and Altman have more experience with large enterprise funds such as the harbor and utilities. Following is a brief description of each firm's proposal: Altman, Roizers & Co. This firm is an Alaskan based Certified Public Accounting (CPA) firm which provides auditing and accounting services to more than 70 governmental entities in Alaska.The firm employs 7 principals and over 45 staff with branch offices in Anchorage, Soldotna and Juneau. The firm has been in practice in Alaska for 29 years. Their clients include not-for-profit organizations, schools, and cities (Nome, Kotzebue, Kodiak City and Borough, Bethel and Lake and Peninsula Borough). The principals in the firm have experience auditing governmental entities.They have assisted clients in preparing their annual CAFR and receiving their Certificate of Achievement in Excellence in Financial Reporting, and are qualified to perform the City's audit. Altman's three-year fee is$288,235 ($93,325 for 2019; $96,025 for 2020; and $98,885 for 2021). Their team raw average rate is $119 per hour. BDO This firm is a CPA firm with 40 years of local Alaska experience. It has 6 partners, 80 staff and is the largest CPA firm in the State. BDO also has access to personnel and technical resources of the 5' largest firm in the U.S. BDO serves more Alaska government entities than any other firm in Alaska.It also serves 20 of Alaska's "Top 49ers", including auditing more than 50 government entities and conducting roughly 75 single audits each year. Their clients include cities, boroughs,utilities,school districts, state agencies, public utilities, health care organizations, and communities such as the Municipality of Anchorage,Matanuska Borough, Kenai Peninsula Borough,City of Soldotna,Homer, Palmer, and the City and Borough of Sitka, Wrangell and Yakutat. They have assisted clients in preparing their annual CAFR and receiving their Certificate of Achievement in Excellence in Financial Reporting, and are qualified to perform the City's audit. BDO's three-year fee is$428,200 ($139,500 for 2019,$143,200 for 2020,and$145,500 for 2021). Their team raw average rate is$164.20 per hour. Elgee Rehfeld This firm is the largest firm in Southeast Alaska. It has 5 partners, over 17 staff. It has over 900 clients including non-profits,state agencies,local governments,small and mid-size businesses and individuals in wide-ranging industries. Since 1992 their audit and other attestation service department has grown over 1,100%. They have audited the City and Borough of Juneau for over 20 years. In addition, they audit regional and local healthcare organizations such as Norton Sound Health Corporation and Southeast Alaska Regional Health Corporation. Elgee Rehfeld also states it is their policy not to include their estimated initial audit learning time in the proposal as they consider the hours incurred in learning about client's operations and controls as an investment in the future relationship. They have assisted clients in preparing their annual CAFR and receiving their Certificate of Achievement in Excellence in Financial Reporting. They are qualified to perform the City's audit. Elgee Rehfeld's three-year fee is $336,134($111,153 for 2019,$11 I,022 for 2020,and$113,959 for 2021). Their team raw average rate is $144.00 per hour. It is our opinion that Altman, Rogers &Co. should perform the City's audit. Based on the outcome of the RFP process,their experience with similar governmental clients and ability to audit the City from a fresh perspective will be of benefit to the Council, staff and other readers of the report. BDO and Elgee Rehfeld are also qualified to perform the audit. However, BDO's hourly rate is the highest of the three proposals and Elgee Rehfeld's smaller staff size and limited breadth of experience with cities of our size is concerning. The auditors work for the city council rather than management.There are advantages to retaining a firm for a significant period of time. There are also advantages to gaining a fresh perspective and ensuring auditor independence. Management believes that we can work well with all firms that submitted proposals. INTENT: To award a contract for independent audit services for a three-year period,with options to extend for up to two additional years. CONSISTENCY CHECKLIST: Yes No NIA l. Comprehensive Plan 'docunzent source here): 2. Strategic Plan (document source here): 3. Other flist : X ATTORNEY REVIEW: Yes No FISCAL NOTE: The 2020 Budget includes $115,000 for the annual audit. No additional appropriation is required. Approved by Finance Department: RECOMMENDATION: Council approve Resolution 2020-012awarding a contract for external audit services to the firm of Altman, Rogers & Co. for the 2019, 2020 and 2021 annual audits, with an option to extend for an additional two years at the discretion of the city manager. 2W PROFESSIONAL AUDIT SERVICES AGREEMENT THIS AGREEMENT is made and entered into this February 11,2020 between the CITY OF SEWARD(hereinafter called "CITY")and Altman, Rogers&Co. (hereinafter called "CONTRACTOR"): WITNESSETH: WHEREAS,pursuant to the provisions of Seward City Code Chapter 6,the CITY may contract for such professional services as may be required; and WHEREAS, the City Charter requires an independent audit of all accounts of the CITY at least annually, and the audit is required to be made by certified public accountants; and WHEREAS, CONTRACTOR works for the Seward City Council and their services will be of benefit to the citizens of the City of Seward. NOW, THEREFORE,the CITY and CONTRACTOR mutually agree as follows: A. Employment of Contractor: The CITY agrees to engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform external audit services for the calendar years ending December 2019,December 2020,and December,2021. This Agreement maybe extended for one two-year period upon mutual agreement of terms,and approval of the City Council. B. Scope of services: The CONTRACTOR shall do,perform,and carry out in a professional manner, the services described in the City of Seward's Audit RFP No. 2020-001. C. Time of Performance: The services to be performed hereunder by the CONTRACTOR shall be undertaken and completed in such sequence as to assure their expeditious completion to best carry out the purposes of this Agreement. The CITY requires that the external auditors coordinate their work with CITY personnel as follows: 1. All work will be coordinated with the Finance Director, who is primarily responsible for working with the external field auditors. Further coordination as necessary with the Accounting Supervisor,who monitors the day-to-day workflow of the department. 2. The Finance Director will work with the auditors to coordinate scheduling and identify the work required to complete the audit. 3. Verbal progress reports will be provided to the Finance Director on a weekly basis during the conduct of the audit. All adjusting journal entries suggested by the auditors are to be discussed with the CITY Finance Director. D. Compensation: Compensation is to be computed separately for each year for which audit services are provided. The total compensation due to the CONTRACTOR during each year of this contract is as follows: 1) 2019 audit= $93,325; 2) 2020 audit= $96,025; 3) 2021 audit = $98,885, where compensation includes professional fees and actual out-of-pocket expenses, such as airfare, lodging,per diem and report production. The total compensation due the CONTRACTOR for any 72S Professional Services Agi-ccnicnl For Extcnial Indcpcndcnt Audit Sei-Nices extensions of this contract will be mutually negotiated prior to commencement of additional audit work beyond the initial three-year contract term. E. Payment to Contractor_: The CONTRACTOR will bill the CITY monthly for services rendered. The CITY agrees to make payment to the CONTRACTOR within 30 days of receipt and agreement with the CONTRACTOR's bill. Final payment will be made after presentation of the audit report to the City Council, and in the case of the "conversion period," within 30 days of receipt and agreement with the CONTRACTOR's bill. F. Chan es: The City may, from time to time, require changes to the scope of services of the CONTRACTOR to be performed hereunder. Such changes, which are mutually agreed upon by and between the CITY and the CONTRACTOR, shall be incorporated by written amendment to the Agreement, subject to approval of the Finance Director. For any additional fee/costs so authorized, the CITY requires that the fees for additional financial work be expressed as a fixed hourly rate for each period subject to audit, quoted for each staff category (e.g. partner,manager, senior), and that the detail of the costs be disclosed. G. Services and Materials to be Furnished by the CITY: The City shall provide assistance in the accumulation of data and records to facilitate the audit for the City of Seward. H. Termination of Aggreement_If,through any cause,the CONTRACTOR shall fail to fulfill in timely and proper manner its obligation under this Agreement,the CITY shall thereupon have the right to terminate this Agreement by giving written notice to the CONTRACTOR of such termination at least ten (10) business days before the effective date of such termination, and specifying the effective date of termination. 1. Information and Reports: The CONTRACTOR shall, at such time and in such farm as the CITY may require, furnish periodic reports concerning the status of the project. The CONTRACTOR shall furnish the CITY, upon request, copies of all documents and other materials prepared or developed in relation to,or as part of,the project,including copies of all year-end work papers. J. Records and Inspections:The CONTRACTOR shall maintain full and accurate records with respect to all matters covered under this Agreement. The CITY shall have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents,proceedings,and activities. K. Accomplishment of Project: The CONTRACTOR shall commence, carry on, and complete the project with all practicable dispatch, in a sound, economical, and efficient manner, in accordance with the provisions of this Agreement and all applicable laws. In accomplishing the project, the CONTRACTOR shall take such steps as are appropriate to ensure that the work is properly coordinated with related work being carried out by the CITY. L. Matters to be Disre art ded: The titles of the several sections, subsections,and paragraphs set forth in this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of the provisions of the Agreement. M. Completeness of Agreement: This Agreement and any additional or supplementary document or documents incorporated herein by specific reference contain all the terms and conditions agreed upon by the parties hereto,and no other agreements,oral or otherwise,regarding the subject matter of this agreement or any part thereof shall have any validity or bind any of the parties hereto. Page Z of 5 72M Professional Scii1ccs Agreement For Fxwrnal Independent Audit Services N. City Not Obligated to Third Parties: The CITY shall not be obligated or liable hereunder to any party other than the CONTRACTOR. O. When Rights and Remedies Not Waived: In no event shall the making by the CITY of any payment to the CONTRACTOR constitute or be construed as a waiver by the CITY of any breach of covenant, or any default which may then exist on the part of the CONTRACTOR,and the making of any such payment by the CITY while any such breach or default shall exist, shall in no way impair or prejudice any right or remedy available to the CITY with respect to such breach or default. P. Personnel: The CONTRACTOR represents that it has, or will, secure at its own expense, all personnel required to perfonn the services under this Agreement. All of the services required hereunder will be performed by the CONTRACTOR or under its supervision, and all personnel engaged in work shall be fully qualified to perform such services. The personnel assigned to the CITY shall be mutually agreed upon by the CONTRACTOR and Finance Director. All subsequent staffing changes will be reviewed with, and agreed to,by the Finance Director prior to assigning personnel. The CONTRACTOR shall make every effort practicable to ensure continuity of personnel from year to year with respect to performance of the audit. Q. Independent Contractor: The parties intend that the CONTRACTOR, in performing the services specified in the Agreement,shall act as an independent contractor and shall have full control of the work and the manner in which it is performed. The CONTRACTOR and CONTRACTOR's employees are not to be considered agents or employees of the CITY for any purpose. R. Insurance: Without limiting the Contractor's indemnification,the CONTRACTOR shall provide at its own expense, and maintain at all times, the following insurance with insurance companies licensed in the State of Alaska and shall provide evidence of such insurance to the CITY as may be required. The policies or certificates thereof shall provide that,thirty(30)days prior to cancellation or material changes in the policy,notices of same shall be given to the CITY for all of the following stated insurance policies: 1. Worker's Compensation—in compliance with the statutes of the State of Alaska 2. Comprehensive General Liability—insurance in the amount of$300,000 combined single limit to include: a. Premises Operations b. Products/Completed Operations c. Blanket Contractual d. Broad Form Property Damage e. Independent Contractors f. Personal Injury 3. Comprehensive Automobile Liability — insurance with a minimum limit of liability per occurrence of $300,000 combined single limit per occurrence to include owned automobiles,hired and non-owned automobiles. 4. Professional Liability—insurance in the amount of$300,000. If at any time, any of said policies shall be unsatisfactory to the CITY, as to form or substance, or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy and a certificate thereof as herein Page 3 of 5 25 Professional Sci-Nices Agz-cement For IMcrnal Indcpcndent Audit SC1-%7ee5 above provided. Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, the Agreement, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification. The CITY, its officials, agents and employees shall be named as additional insured on all insurance policies required herein. The CONTRACTOR's insurance policies shall include a provision that the coverage is primary as respects to the CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with the insurer(s)with acceptable Best's rating of A:VII or with approval of the Finance Director. S. Ownership of Work Products: Work products produced under this Agreement, except items which have preexisting copyrights, are the property of the CITY. Payments to the CONTRACTOR for services hereunder include full compensation for all work products and other materials produced by the CONTRACTOR pertaining to this Agreement. T. Claims and Disputes: If the CONTRACTOR becomes aware of any act or occurrence which may form the basis of a claim, the CONTRACTOR shall immediately inform the Finance Director. If the matter cannot be resolved within seven (7) days, the CONTRACTOR shall, within the next fourteen(14)days,submit written notice of the facts which may form the basis of the claim. In presenting any claims, the CONTRACTOR shall specifically include the provisions of this Agreement which apply, the specific relief requested, including any additional compensation claimed, and the basis upon which it was calculated and/or the additional time requested and the basis upon which it was calculated. U. Governing Laws: This Agreement is governed by the laws of the State of Alaska and such federal and local laws and ordinances as applicable to the work performed. CONTRACTOR is required to have a current City business license prior to commencement of Agreement. V. Hold Harmless: The CONTRACTOR shall hold the CITY, its agents, officers, employees and volunteers,harmless from,save,defend and indemnify the same against,any and all claims,losses, and damages for every cause, including but not limited to injury to person or property, and related costs and expenses, including reasonable attorney fees,arising directly or indirectly out of any act or omission of CONTRACTOR, its agents, officers, employees, or volunteers, during the performance of its obligations under this Agreement. W. Notices: Any notices,bills,invoices,or reports required by the Agreement shall be sufficient if sent by the parties in the United States mail,postage paid, to the addresses noted below: Tammy Stromberg Finance Director City of Seward P.O. Box 167 Seward,Alaska 99664-0167 Page 4 of S 72M Professional Services Agi-ceinciit For External Indepcntlent Audit Services IN WITNESS WHEREOF, the CITY and the CONTRACTOR have executed this Agreement as of the date first written above. Altman,Rogers &Co. CITY OF SEWARD Grant R.Todd,CPA Scott Meszaros Principal City Manager ATTEST: Brenda Ballou City Clerk (City Seal) Page 5 of 5 29 CARMEN JACK50N CPA , LLC April 27, 2023 Mayor Sue McClure City of Seward PO Box 167 Seward,AK 99664 Re: Extension of Auditor Contract Dear Mayor McClure, The purpose of this letter is to recommend that the City extend the contract with the current auditors, Altman Rogers &Co, for two more years.As a professional service, the City code does not require a new set of bids at this time.In addition,the financial audits of the last two years have shown dramatic improvements in the City process. We recommend the City continue to focus on improvements and strengthening internal systems prior to changing auditors. Sincerely, Carmen Jackson, CPA President Carmen Jackson CPA, LLC 2521 E Mountain Village Dr Governmental and Not-for-Profit Phone: (907) 931-1328 Ste B PMB 209 Interim Staffing; Accounting Assistance W carmenjacksoncpa.com Wasilla, Alaska 99654 Audit Prep2al&tion Email: Service@CarmenJacksonCPA.com • swir- Action Memorandum 2023-005 Authorizing the City Manager to Approve Placement of a Memorial on the Jesse Lee Home Parcel by the Seward Community Library Association Documents: • Action Memorandum 2023-005 • Letter from SCLA • JLH Plat 219 MYes 6o AL Ti 41 C 7) f 'NA ,-_22 Jessz-LEE HvaHrs SuawillsloAt AoPN.No 4 a.z.r,4x, M.S,,%A,M0.65-3 ""j He a ------ 7—`411A 420.&1 J.-- M6 Via,I kAara I.—S-- SEWARD COMMUNITY LIBRARY ASSOCIATION (SCLA) AKA FRIENDS OF THE SEWARD LIBRARY COLLECTIONS COMMITTEE: MARY TOUGAS PHYLLIS SHOEMAKER KATHLEEN BARKLEY TO: CITY OF SEWARD MUSEUM EXHIBITS COMMITTEE ELAN YAN USZ, CURATOR RBHS COLLECTIONS COMMITTEE REGARDING: MUSEUM EXHIBIT PROPOSAL JESSE LEE HOME FOR CHILDREN FOR 2024 221 Narrative: SCLA has an opportunity to accept funds, up to$38,000 from a source that wants to have the funds used to do a memorial in memory of the Jesse Lee Home For Children. When the funds are secured, we would then reveal the source and history of the giving. With these funds,SCLA's board has agreed to do an outside, mini park, on the Jesse Lee property that the City of Seward now has cleared and is in the process of soil cleanup with the DEC. This land is zoned 'Park'at this time and has no set design in place yet. With preliminary start up of inquiring about doing the outdoor memorial, mini-park,the City of Seward,City Manager,Janett Bower and Assistant City Manager,Stephen Sowell have both given verbal only to this idea as being one they would support and work with SCLA to do. SCLA would accept the funds and work on design of the outdoor mini-park memorial along with other partners, like the City of Seward, RBHS and the Historic Commission. The funds would also be used for the work of telling the story of the Jesse Lee Home for children in the Seward Museum. SCLA Collections Committee would like to propose that the area currently where the organ and signage talk about the Jesse Lee Home, become a proper exhibit. SCLA as a part of the City of Seward's MOU Exhibit Committee,would like to be the lead,working with all the partners of the exhibit committee,(curator, Library Museum Director, RBHS Collection Committee members that are on the Exhibits Committee) Making this an inclusive work of the Exhibits Committee. We would use some of the funds from the$38,000 for the outdoor mini park and would work to be able to include/use some of the photos and materials produced for this effort into the museum exhibits to make the funds do double duty,where it makes sense to do so. A map with where public can see the mini-park memorial as well. With current work being completed by the Exhibits Committee for the 2023 summer,we would like to propose this joint effort for the following 2024 summer museum season. SCLA is very excited to work on this and want to present this project idea to the Exhibits Committee now with hopes that we can have a conversation with all of us for this consideration. Mary Tougas,SCLA President SCLA Board of Directors 222 City of Sewardt Action Memorandum 2023-005 :G - Meeting Date: May 22, 2023 To: City Council From: Sue McClure, Mayor Subject: Action Memorandum 2023-005: Authorizing the City Manager to Approve Placement of a Memorial on the Jesse Lee Home Parcel By the Seward Community Library Association Background and justification: The City of Seward is in the process of working with the Alaska Department of Environmental Conservation (DEC) to determine the allowable use(s) for the Jesse Lee Home parcel. Mitigation and removal of contaminated soils is still underway and a determine by DEC is forthcoming. City Council has directed City Administration previously that the future site layout and design for the parcel needs to come back to City Council once the allowable uses are determined. No timeline is known at this time for DEC determination. City Administration is working to have a comprehensive survey completed of the parcel to determine lot lines and detailed parcel information. In the meantime, the Seward Community Library Association (SCLA) has obtained $38,000 in grant funding which is intended to be used for the purpose of constructing a memorial on the Jesse Lee Home site and would like to use some of the funds for an outdoor mini park. If approved, this Action Memorandum authorizes the City Manager to allow SCLA to construct such a memorial in the southwest corner of the lot. 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: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable 223 Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: w ` — Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation xeAdopt AM Other: Disposition (Completed by the City Clerk's Office) 224 RECEIVED CITY OF SEWARD, ALASKA APR 1 $ 2023 APPLICATION FOR THE SEWARD HISTORIC PRESERVATION COMMISSION OFFICE OF THE CITY CLERK NAME: !�� r 1�� t--r STREET ADDRESS: '�rj 1 "",-,A &k,- MAILINGADDRESS: �` 25 E-MAIL ADDRESS HOME TELEPHONE: LENGTH OF RESIDENCY IN THE SEWARD AREA: PRESENTLY EMPLOYED AS: List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the Commission: -J�b l f �.? cal by SU`� F r GV C)IJ E +h i ry W 1^ c�v— Have you ever been involved in any aspect of historic preservation? If so, briefly describe your invQ meat: am specifically interested in serving on the Historic Preservation Commission because: V 00 V) i 4 � tc �L vik,F—T�f I 'C�N--f- A d 0 C L�algL Have you ever served on a similar commission elsewhere? Yes o No If so, where? And when? If appointed, are you willing to: • Do historic research? S NO • Work on preparing grant applications? NO • Work on writing historic register nominations? NO • Attend historic preservation workshops? TE!8 NO SIGNATURE DATE 225 CITY OF SEWARD, ALASKA APPLICATION FOR THE SEWARD HISTORIC PRESERVATION COMMISSION NAME: Tanguy libbrecht SAY Q 3 2023 STREET ADDRESS: 223 6th Ave Seward, AK 99664 C TyE OF j HE MAILING ADDRESS: Po box 92823 Anchorage, AK 99509 CLERK E-MAIL ADDRESS tylibbrecht@gmail.com HOME TELEPHONE: 9075299709 LENGTH OF RESIDENCY IN THE SEWARD AREA: 14 years PRESENTLY EMPLOYED AS: CEO, American Red Cross of Alaska List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the Commission: We have renovated homes from 1911 our first home (Texas) As well as The 1913 house at 223 6th ave and the 1905 cable house. written several grants Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involvement: Have been on HP for two terms, including writing grant for the historic Walkiing tour. I am specifically interested in serving on the Historic Preservation Commission because: The preservation of and promotion of Seward's history is vital to our City and to the state of Alaska as well as promoting our place in US history. Have you ever served on a similar commission elsewhere? Yes or No If so, where? No And when? If appointed, are you willing to: • Do historic research? )/ES NO • Work on preparing grant applications? Y YES I NO • Work on writing historic register nominations? Y NO • Attend historic preservation workshops? ��YN NO 04.10,23 SIG ATURE DATE 226 CITY OF SEWARD, ALASKA APPLICATION FOR THE SEWARD HISTORIC PRESERVATION COMMISSION NAME: ( � RECEIVES STREET ADDRESS: I� -C1U MAILING ADDRESS. --;DX L .S MAY 0 9 2023 �� E-MAIL ADDRESS 1l__e OFFICE OF THECITY CLERK HOME TELEPHONE: —c�2� LENGTH OF RESIDENCY IN THE SEWARD AREA: A PRESENTLY EMPLOYED AS:d 1 List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the Commission: Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involve ent� -AD am specifically interested in serving on the Historic Preservation Commission because: Have you ever served on a similar commission elsewhere? Yes or No If so, where? And when? If appointed, are you willing to- • Do historic research? ES 1 NO • ,,Woreon eparing ra applications? NO • ' WorMing i oric egister nominations? NO Atteoric p e ervati n workshops? ES NO MA f 31) 2-D� GN TU DATE 227 • swir- Resolution 2023-062 A Resolution of the City Council of the City of Seward, Alaska, Recommending Kenai Peninsula Borough Approval of the Preliminary Replat of Fourth of July Creek Subdivision, Seward Marine Industrial Center (SMIC), Unsubdivided Remainder of Block 6, Located at 110 Olga Street; Creating Two Lots, Lots 4 & 5, Block 6, Fourth of July Creek Subdivision SMIC, Duchess Replat Documents: • Agenda Statement • Resolution 2023-062 • Replat Application • Property Location Map • Plat Map Drawing 228 City Council Agenda Statement a Meeting Date: May 22, 2023 t! To: City Council Through: Norm Regis, Acting City Manager From: Jason Bickling, Community Development Director Subject: Resolution 2023-062: Recommending Kenai Peninsula Borough Approval of the Preliminary Replat of Fourth of July Creek Subdivision, Seward Marine Industrial Center (SMIC), Unsubdivided Remainder of Block 6, Physical Location 110 Olga Street, Creating Two Lots, Lots 4 & 5, Block 6, Fourth of July Creek Subdivision SMIC, Duchess Replat Background and justification: Attached for the Commission's review and recommendation to the Kenai Peninsula Borough Planning Commission is a preliminary replat submitted by the City of Seward per the request of Duchess LLC. This platting action creates two new parcels, Lot 4 &5, Block 6, Fourth of July Creek Subdivision SMIC, Duchess Replat, by subdividing Fourth of July Creek Subdivision, SMIC, Unsubdivided Remainder of Block 6, also known as 110 Olga Street Seward, Alaska in the Seward Marine Industrial Center. Duchess LLC requested this platting action to establish a parcel, Lot 5, which they would lease for boat storage from the City of Seward. Roads and electric are currently accessible to the proposed parcels, and sewer is available on the north end where the proposed parcel for lease is located. However, water is not available. International Fire Code requires a fire hydrant to be installed if a building is constructed within a distance greater than 500 feet from an existing fire hydrant. The applicant has been informed of this requirement. The City has plans to extend the water and sewer lines to all of the parcels in SMIC that do not currently have access as development and use demands. According to Seward City Code 16.01.015, property owners within 300 feet of the requested platting action were notified, and the property was posted with public notice signage. On April 4, 2023, the Planning and Zoning Commission reviewed and approved Resolution 2023- 006, which recommended the City Council approve the proposed platting action in the Duchess Replat. In accordance with Borough requirements, the City must review and comment on a plat before submittal to the Borough for approval. In addition, Seward City Code requires that any platting action done to City owned land must be approved by the Planning and Zoning Commission as well as the City Council prior to recommendation to the Kenai Peninsula Borough. 229 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Vo/1 Ch 2.2.11 -The Comprehensive Plan encourages completing the development of SMIC as a revenue source with year-round employment opportunities. Vo/1 Ch 3.5.1.2 -Support the SMIC Development Plan to include new market trends and modern technologies for ship repair and construction, shipping of natural resource products, boat storage, and other compatible industries, soliciting support from Alaska Industrial Development and Export Authority (AIDEA) and the US Economic Development Administration (EDA). Strategic Plan: "Expand development in the Seward Marine Industrial Center"(page 7). Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): x Creates revenue in the amount of: $ 8% of market value (lease) x Creates expenditure in amount of: $ Half of the cost of the replat Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): x Budgeted Line item(s): Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater x Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review RYes Attorney Signature: Not applicable Comments: 230 Administration Recommendation eApprove Resolution Other: 231 Sponsored by: Regis Public Hearing: May 22, 2023 CITY OF SEWARD,ALASKA RESOLUTION 2023-062 A Resolution of the City Council of the City of Seward, Alaska, Recommending Kenai Peninsula Borough Approval of the Preliminary Replat of Fourth of July Creek Subdivision, Seward Marine Industrial Center (SMIC), Unsubdivided Remainder of Block 6, Located at 110 Olga Street; Creating Two Lots, Lots 4 & 5, Block 6, Fourth of July Creek Subdivision SMIC,Duchess Replat WHEREAS, the City of Seward, per the request of Duchess LLC, has submitted a preliminary replat to the City of Seward for review and recommendation to the Kenai Peninsula Borough; and WHEREAS, on April 4,2023,the Planning and Zoning Commission approved Resolution 2023-006 recommending City Council approve the Fourth of July Creek Subdivision SMIC, Duchess Replat, Lots 4 &5, Block 6; and WHEREAS, this replat creates two new parcels, Lots 4 & 5, Block 6 on the property known as 110 Olga Street; and WHEREAS,Duchess LLC is interested in leasing proposed Lot 5 from the City of Seward to store boats; and WHEREAS,the parcels are zoned Industrial (I); and WHEREAS, the parcels currently have access to municipal road, electric, and sewer on the north end, but not water; and WHEREAS,International Fire Code requires a fire hydrant to be installed if a building is constructed within a distance greater than 500 feet from an existing fire hydrant; and WHEREAS, Lot 5 is the only parcel that will be currently leased, and Duchess LLC has been informed of these requirements; and WHEREAS, the City of Seward has plans to extend the water and sewer lines to these parcels and install fire hydrants as development demands; and WHEREAS, all conditions required by Seward City Code §16.01.015, Conditions to plat approval, were met; the property owners within 300 feet of the requested replat were notified of the proposed subdivision, and the property was posted with public notice signage; and WHEREAS, Seward City Code §16.01.015(b)requires that the City Council review and approve any platting action of City owned land prior to submitting to the Kenai Peninsula 232 CITY OF SEWARD,ALASKA RESOLUTION 2023-062 Borough. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council hereby recommends that, in accordance with Seward City Code Section 16.01.015 (B), the Kenai Peninsula Borough approve the submittal of the Replat of Fourth of July Creek Subdivision, Seward Marine Industrial Center (SMIC), Unsubdivided Remainder of Block 6, Creating Two Lots, Lots 4& 5, Block 6, Fourth of July Creek Subdivision SMIC, Duchess Replat. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 22nd day of May, 2023. THE CITY OF SEWARD, ALASKA Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) 233 Community Development/ Planning & Zoning 410 Adams St, Seward,Alaska 99664 '(907)224-4048 • (907)224-4020 or email: planning@cityofseward.net PRELIMINARY PLAT SUBMITTAL FORM ❑Q PRELIMINARY PLAT ❑REVISED PRELIMINARY PLAT(no fee required) PHASED PRELIMINARY PLAT[-]PRELIMINARY PLAT FOR PRIVATE STREETS/GATED SUBDIVISION All requirements of Seward Code Title 16 apply and must be met. SUBDIVISION PLAT NAME:must not include business names,contact staff for assistance if neededVm�u , Ly Creek Subdivision. Seward PROPERTY INFORMATION: legal description Remainder of Block 6, Fourth of July Creek Sub, SMIC, Add#1 Section,Township,Range Section 18, Township 1 South, Range 1 East General area description East of Olga Street Souith of Morris Avenue SMIC City Seward Total Acreage 6.082 SURVEYOR Company: Lang &Associates, Inc. Contact Person: Ken Lan Mailing Address: 11500 Daryl Avenue City,State,Zip Anchorage,AK 99515 Phone: 907 522-6476 e-mail: kenC'a)langsurvev.com PROPOSED WASTEWATER AND WATER SUPPLY WASTEWATER[-]on site City WATERF�an siterv-,JCity SUBMITTAL REQUIREMENTS Apreliminary plat application will be scheduled for the next available Planning and Zoning meeting after a complete application has been received. QElectronic file of Plat and ✓Preliminary plat NON-REFUNDABLE submittal fee$75.00- Fv Certificate to plat for ALL parcels included in the subdivision Documentation showing proof of signatory authority(partnerships,corporations,estates,trusts, etc.) ❑Public Notice Sign(s)Posted on property-City staff will contact you to pick up sign EXCEPTIONS REQUESTED TO PLATTING CODE:A letter,to be presented to the Planning and Zoning commission,with substantial evidence justifying the requested exception and fully stating the grounds for the exception request,and the facts relied upon,MUST be attached to this submittal. 1. 2. 3. APPLICANT: SIGNATURES OF ALL LEGAL PROPERTY OWNERS ARE REQUIRED.Additional signature sheets can be attached.When signing on behalf of another individual,estate,corporation,LLC, partnership,etc.,documentation is required to show authority of the individuals)signing. Contact KPB staff for clarification if needed. OWNER(s) Name(printed):Janette Bower Signatur . Phone: 907 224-4012 e-mail: Name(printed): Signature: Phone: e-mail: Name(printed): Signature: Phone: e-mail: FOR OFFICE USE ONLY RECEIVED BY DATE SUBMITTED Receipt 4 234 The preliminary plat shall be drawn to scale of sufficient size to be clearly legible and shall clearly show the following; 1, Within the title block: Not applicable The required to my plat. information has been shown/noted. a. Name of the subdivision which shall not be the same as an existing city,town,tract,or subdivision of land in the borough,of which a plat has been previously recorded,or so nearly the same as to mislead the public or cause confusion; J b. Legal description,location,date,and total area in acres of / the proposed subdivision;and J C. Name and address of owner(s),as shown on the KPB records and the certificate to plat,and registered land surveyor; J 2, North point; l 3. The location,width and name of existing or platted streets and J public ways,railroad rights-of-way,and other important features such as section lines or political subdivisions or municipal / corporation boundaries abutting the subdivision; 4. A vicinity map,drawn to scale showing location of proposed subdivision,north arrow if different from plat orientation,township and range,section lines,roads,political boundaries,and prominent natural and manmade features,such as shorelines or streams; 5, All parcels of land including those intended for private ownership and those to be dedicated for public use or reserved in the deeds for the use of all property owners in the proposed subdivision, together with the purposes,conditions,or limitations of reservations i that could affect the subdivision; 6. The names and widths of public streets and alleys and easements, existing and proposed,within the subdivision; J 7. Status of adjacent lands,including names of subdivisions,lot lines, block numbers,lot numbers,rights-of-way;or an indication that the adjacent land is not subdivided; f 8. Approximate locations of areas subject to inundation,flooding,or storm water overflow,the line of ordinary high water,wetlands when adjacent to lakes or non-tidal streams,and the appropriate studywhich identifies a ftoodplain,if applicable; 9. Approximate locations of areas subject to tidal inundation and the mean high water line; J 10. Block and lot numbering approximate dimensions and total numbers of proposed lots; P 11. The approximate location of known existing municipal wastewater and water mains,and other utilities within the subdivision and / immediately abutting thereto 12. Contours at suitable intervals when any roads are to be dedicated unless the planning director or commission finds evidence that road grades will not exceed 6 percent on arterial streets,and 10 percent on other streets; 13. Approximate locations of slopes over 20 percent in grade and if contours are shown,the areas of the contours that exceed 20 percent grade shall be clearly labeled as such; 14. Apparent encroachments,with a statement indicating how the encroachments will be resolved prior to final plat approval Subdivision Name: 11'600"rr+ +6�;as� Ct+tra ,`�jJ1l . t�JG tf Gi5 f1,1J bate I[-,,u 235 Lan2 & Associates Inc. Registered Professional Land Surveyors 11500 Daryl Avenue Anchorage,Alaska 99515-3049 (907) 522-6476 January 27, 2023 SEWARD PLANNING COMMISSION PLAT SUBMITTAL FOURTH OF JULY CREEK SUBDIVISION SEWWARD MARINE INDUSTRIAL CENTER DUCHESS REPLAT This is a request to subdivide the remainder of Block 6 into 2 additional lots. The new lots exceed the minimum required lot area for the industrial zone. The plat does not dedicate any additional right-of-way. Please schedule this plat for consideration at the March meeting of the Seward Planning and Zoning Commission. Sincerely, Kenneth a L.S. Petitioners Representative 236 CERTIFICATE OF OWNERSHIP AND DEDICATION pREUM\NARYi II, UMINARY I(..).I,—"..mh Nm I(..)—IN.—.r pf fn.—v.. ,.n..,.. RE and d.—.d h.r.On pna that I h.r.Sy adopt fhb Al-of subalvlsi.o entl yE{ a by my free non.aM--H.p n......t p 6. yy �f y 4 I C 5 uv.pna 9—H nnrh.fln..no n nn gL�CK BLU K I li Owner _1----------J L----------------- -———MORRIS AVENUE— TAT A5 TY MANAGER JANETTE BOWER,CI --- ------ TY OF SEWARD ————Al—N+.e— � P.O.BOK 16T Ij —posed+o uB c+s.vwrsI I SEWARD,ALASKA 99664 III ; PROPOSED Lot 5 B Notary Acknowledgement I;I Buh,.rlhea pna IIII III e.em M befpro me Ihb day _ — r sssE"txrs T' Hofpry Pub90 for Me SM1s of A ppkp My Comml..lon E"plr O a ^_ PLATS II +y p+c O usEu6u �_ 1)FOURTH OF DULY CREEK SUBDIVISION,SEWARD MARINE INDUSTRIAL CENTER L———_J (Plpf No.97-2)),CREATING Lot 1.BLOCK 6 AND THE UNSUBDNIDED  7 CID,, ++ REMAINDER OF BLOCK 6. 1�p =RDP�Y. Gy Z)FOURTH OF JULY CREEK SUBDMSION,SEWARD MARINE INDUSTRIAL CENTER. BUCK 7 y �' AN UN UNSUBOIVIDEDIDN NUMBER ONE(RIEMANDEROOr BLOCK CREATING Loiv Z t 3.BLOCK 6 u PR Lot�+kt a 3)THE SEWER MAIN IS A PRESSURIZED AND NOT—HABLE FOR USE. j . Scale: 1 = 1 Mi e I I o is I e II I PB9Ppsm zs'om.;x.cE FwscMcxr I II � I DH u-f I I '> P+mmsm THIS ��sEw o-° I ya PLAT ...—_._.wp cr,.u_Wn.. I J I r s+mutt Frs I jIL— EWE urc.•==Elrt�l I 10 _ j � LO� ut Lpf 1N I i FOURTH OF JULY wCREEK SUBDIVISION 9 SEWARD MARINE INDUSTRIAL CENTER —Ja DUC HESS RR�PLAT WARY I, IF—�, NARY PREI\M I li Ii ; Iw f i I PRELIM y+�,mpm..,+. s THE .1 SEWARD RECORDING DISTRICT SURVEYOR'S CERTIFICATE WASTEWATER DISPOSAL r .,.hy.. r nm I— ,p."ro9bf...a and n.--ro v-1-Ipna OF A Plpn.mr.pa.wm..alsPoeol.....m.....ampl.ry roywrom.m.pro pn n1.m , . yin9 A th.IS-A O,Al-- Thb plat royroAenM p eun.y made by .�Q.. �qS th.D.pp--pf EnNronmanfpl Con...wnon. Lang & Associates, Incl. -1 Br under my dlrocf eepervl.. ", en enfe*111, Fero eelupIh �P' Profes6lonal �Mrvey04 DWTOF e"let o Um 49Td�G '9 Ilsoo p.M Ann Cltt OF SEWARD no.me eaienaord.of p cues of and survypreerntl*IStofe 01 A. f a F, L.ek P.O.BOK 167 inc1 ey SBEWARD.A4ASKA PLAT APPROVALro 9 ""' B ssa Pm vv by .K.nm Pemn.mp B. 9 pmm�9 c.mmLlOn m me ,� ®. .. —A.AERIAAA m. 9 H SCALE:I-=f00' DATE:06 FEBRUARY 2O Bo p 011lclol DRAWN:JCL SHEET 1 OF t PROJECT':ZS-015 JOB FILE: —45pp-SEWARD.d.g Stewart Title of the Xenai Peninsufa, Inc. 35096 Kenai Spur Hwy. Soldotna, AK 99669 Tel: (907) 260-8031 Fax: (907) 260-8036 CERTIFICATE TO PLAT Lang &Associates, Inc. File Number: 22662 11500 Daryl Ave. Premium: $250.00 Anchorage, AK 99515 Tax: Attention: Ken Lang Gentlemen: This is a certificate as of January 13, 2023 at 8:00 A.M. for a plat out of the following property: Unsubdivided Remainder of Block 6, FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER ADDITION NUMBER ONE, according to Plat No. 2001-2, Seward Recording District, Third Judicial District, State of Alaska. The Company certifies that record title is vested in City of Seward an estate in fee simple, free from all liens, encumbrances, and objections except for as follows: 1. RESERVATIONS and exceptions as contained in U.S. Patent, and/or acts authorizing the issuance thereof, and Notice recorded May 26, 1993 in Book 68 at page 160. 2. RESERVATIONS AND EXCEPTIONS as contained in State of Alaska Patent, and/or in acts authorizing the issuance thereof. Said patent, among other things, reserves all oil, gas and other minerals together with the privileges, mining and drilling rights and immunities. FURTHER, no other examination of the excepted title to minerals has been made herein and no insurance nor responsibility therefore is implied or assumed. 3. TAXES AND ASSESSMENTS, if any, due the taxing authority indicated: Taxing Authority: KENAI PENINSULA BOROUGH 4. EASEMENTS, SET-BACKS AND DEDICATIONS as delineated on Plat No. 97-27. 5. EFFECT of the notes on said Plat No. 97-27. 6. EASEMENTS, SET-BACKS AND DEDICATIONS as delineated on Plat No. 2001-2. 7. EFFECT of the notes on said Plat No. 2001-2, 8. UNRECORDED Leases, subleases and or rental agreements, including the terms and provisions therein. Stewart Title of the Kenai Peninsula, Inc. By Aulhurired Couves a dnarura Terri Cotterell Authorized Signator NOTE: We will update this certificate to comply with Kenai Peninsula Borough Ordinance 90-38 upon notification Certificate to Plat K61 File No.: 22662 238 from surveyor. Certificate to Plat KB1 Fife No.: 22662 239 Patent: No, S`L E300 M JUD 5Q t374ttst lott8tUte khat the State of Alaska, in consideration of the sum of TEN lt311 U01100 - - - - - - - - --ooLLkRs lawful money of the United Slates, and abet Good utd vaWbk wrtstderuioas, now paid, the fn.tpt whereof is bereby scknawledaed.does bmby swat to riTY f1K VWAAn Q_b� ttnr _ 17� SawArd�_Alackh_"6A4_ _ � � ah+t to 5 lta.Cmsstu1m,all that rod pmpmy siumW is for Borough of Kenai Pertinsu]a y Scot:of A4ska,od 4&xrtbed a foltows: U. S. SURVEY NO. 4828, ALASKA COKTAINIRG 389.88 ACRES. ACCORDIXA TO THE SURVEY PLAT OF U. S. SURVEY NO. 4828, ALASKA AIiD DEPEili 4T RESURVEY OF A PORTION OF U. S. SURVEY NOS. 16SI ARID 3294, ACCEPTED BY TKE LIMITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF LAUD 140AG€MEMT IN WASHINGTON, D.L., ON PAY 25, 1977. U. S. SURVEY NO. 4827, ALASKA CONTAINING 83.99 ACRES. ACCORDING TO U. S. SURVEY NO. 4827. ALASKA, ACCEPTED BY THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF LAND HANAGENENT IN WASHINGTON, D.C.. ON MAY TO, 1967. CONTACNIHG AN AGGREGATE OF 473.87 ACRES, MORE OR LESS. Subject to valid existing trails, roads and easeaoents. Subject to the reservation of a 50 foot wide lineal perpetual public easement along the mean high water stark of Resurrection Bay, the ordinary high water mark of fourth of ,July Creek and unnamed streaans as portrayed on the official survey plats of U. S. Surrey No. 4828, Alasita and Dependent Resurvey of a portion of U. S. Survey Nos. 1651 and 3294, accepted by the United States Department of the Interior, Bureau of Land Hanailawnt in Washington, D.C., on May 26, 1977; 240 , 7 U. S. Survey No. 8827, Alaska,, accepted by the united 2-7 States Department of the Interior, Bureau of Land Management in Washington, D.C., on May 10, 1967 and further subject to the reservation of a 50 foot wide perpetual public access easement to tree aforementioned lineal public easement along the above bodies of water. Such public access easements shall be identif-ted uy the Grantee and ,hall be subject to toe covenant that no development or conveyance shall occur on the land conveyed by this patent until the Grantee has platted such easements and formally notified the Grantor of the location of such public access easements. Net Chargeable acreage under A.S. 29.18.202 is 470.00 acres. i—# 4 3 A alo . ,,. Ft 1AvIN � D T isE 1'JE5 1 EAST. ?9"Y T..wdMt SOUTH _ 5EWAR4_ ,...,.. 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Mbxr 14 hr i Ao1.H.. f= }1 t 1 241 T PAGE V� i .lG•1.Tf; K�CVf.:.. � � United States Department of the Interior BUkF-AU OF LAND MANAGEMENT ALASKA STATE OMCE 7C2 W.7W Avemr—f 1 t AP C}I4 GL ALAS KA 99513-7599 A-O5W3(2627) (964)belt CERTIFIED MAIL RETURN I;.ECEIPT REQUESTED MAY 12) 1993 rroTTt✓s State of Alaska A-066973 Depwtmeut of Natural Resources ,Division of Land 17ide and Contracts Section State Selection 3601 C Streat,Sumo 960 Anchorage,Alaska 99503 jl wdersble�Ilatet�ge_,va,e�redit Pursuawt to yen 101 of the Submerged Lands Act Amendment of AuPuust 16, 1988, P.L..100-395,43 U,&C. 1631,the recalculation of meanderable waters for T. 1 S.,R. 1 B.,Sect 7 tbro ugh 36,Seward Meridian,Alaska,was completed and an amended pbd of sca+ey was fled on January 21, 1992. The records show that patent 50.81-0141,rermded in the Seward Recording District, Book 23,Page 765,wsa granted to the State on duly 13, 1981 for all of the lands in in Tract A of this Township. The acreage charged against the General Purposes Grant entitlement was 17.333.50 acres. As a result of the recalculation, there were 51.23 acres of meanderable water identiised for Fourth of July Creek on the attached amended plat of survey, as per Sec. 101 of the Submerged Lands Act Amendment of August 16, 1988.P.L. 100-395, 43 U.&C. 1631. however, the amended plat also identified 3.08 fewer aces in Resurrection Bay which has been deducted 6rom the meanderable water acreage W"t Patent 50-31-0141 will not be corrected;horwever,the State of Alaska will be credited with 48.16 acres tinder the General Purposes Grant entitlement. This acreage shalt be prioritised from other validly selected lands. rf&Knudsen Lead Ladd Law Examiner Bran of Doyon/NW Adjudication L 242 �W O rr) 0 W a N LLI z O1 V ■ Tw we "01' D 0 Ac w 0 i 2 V! U6 z X �0 N N ti w � V7 y YI� Uf N N a � 243 I• Ic cu. r I Officially Filed CRIGINAL DATE_JA►iMY.-2 I. 1992 THE SLWARD MERIDIAN, ALASKA PLAT 7 n.. plat.a.cr.al.d to Campl, .Ills the I M.mor,fnawn of Agt.4mahl Batmen U S i1 0.04r1m.nl e' In.le trier and Slot.or Alaska dat.d March 28,1984.6,..gngOfinq m.ead... t". $AC. Y ABC-I voter for oo7uNmenf el oere aq.charq.a against Ih.S141_a.land•n1.INmAM Thq 9m.n;.0 plal of ongm.l Tract'n',ip.mh�p I South.Range I East.S-010 Mordlan.Alaska. roVLL e. 1ho n,dlootoph,..agr.gatoo 1,a areas of —G-0196G..al v,0.0 the$'.ao al US S—.y*tr.m Mo0 as 00 the ortq-naf gra.e ar.a Those r.w.lan t.•r.ot,ng rr.cr'41'. .10 aa4e6 upon Color MNaf.a pholagraphy 11o.h,n A.ga.f.1978.Dr ro.N.11.1.,I A.t.—P—ask Space A a mra....1...and th.01.1 at ro.n.h,p 1 South, I R..,go I East.So.ard Mor-Own,A.a.ka.oa4ovoo4 C•umD.r 20.'97B ' sec.ll I Loc. le Y Oaglnol Grou Area 19.026 •30 Ad... E.c l...... f R e.urr.c l ran Ba, 1229.41 Acr.. k Faa•1n at J.1,Crook SI 23 At, U S Su•..,No 4827 E] 99 ncra. b p.".anof US Sarre,4820 zoo 4r nu.. QQ porfmn at U S Sur..,1631 96 41 Aare �7 CI+7T sea.Is level E..lu.mm: 1741 45 Acre. v Net Area T.acl'B' ll,205 33 Acre. L � + 244 r- i u c u Q m L H N V P. M9 rev n � a 4 � o M � l4 � O Y O ,n M7 Ch A u • Y V � ` g 1� .� y9 NOI1 .?3bans3ey � ..-_ _ ..._________ J Rims M clyVA3s i 245 —. — Ace.planto of tnra aw•oy 00.e Mal p.rperf to 1 1 7ro.at.r any mt►r.sl ur 14M fled lands to.MOM 1Nd Starve of Marked U eatdl.d under the Ea.41 Fee#--g OsetHne Otte Section 6(m)of fna AIaUa StateNOod ADI,V.L.HS•5Oa.nat.nNonWnq me �•q.P+ g ..o,rue at ton,or ab..nc M.of-04.4w lines to eep¢f rotor Oed141, UMTEO STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT AncNotaq.,Alask. Tale am.ttdod:.'*I•a aoaed.p On Ina of Nctal r..arda aMd.Ncnnq be c.rr.ell,pt.p area�n ace ordonce .dn tee r."lat,orcf at this Bur►au,�e hereby Sec.25 a accepted. 0 • For ine J�t.cta Deputy Stale Dueclor lot '1441,11W Aloe►e IS&a. 39 I sec. 36 I I L00.4. a0•Ot•24 SS' N bad *000 1410-Wat a* tr.AD tyY C-0 t- 7-n � trt t 246 SEWARD RBC ORDM DSMCT C RANTOR: RETURN TO CaRANTEE: UNUM STATES STATE OF ALASKA OLMSAU OF LAND MANAGEMENT CUT OF NATURAL R.ESOURCLS CRANcH OF DOYON ADNDrcAnaN DIVISION OF LAND 222 WEST SEV T M AVgYUE a13 MU AOMflVM ATION UNff ANCHORACX Ax qgsw g3—US5 � ;�• J ��C4Ri ;,.;TRiGT 9 sz IM 9 � 247 u, iSOOK _YA(;E u�jy°js�° SrA:ard ;4cott:in,, District Anchorage 056973 Zbt Mnahb Own; of 2nurica, Me sii to Wbm tbrse prttmts 041 code.Qteefing: r y WnEREAS State of Alaska is entitled to a Land Patent pursuant to Section 6Sb) of the Alaska Statehood Act of July 7, 2958, 72 Stat. 339, as ascended, for the following-described landas , r U.S, Survey No. 4827, Alaska, situated on the easterly shore of Resurrection Hay. t J Containing 83.99 acres. •� U.S. Survey No. 4328, Alaska, situated on } b the easterly shore of Resurrection Hay. 3D ` Containing 389.88 acres. Seward Meridian, Alaska, �� m �- ` •; � � T. I S., R. 1 2., Tract A. C.>t CCD o Containing 17,333.50 sores. r� Aggregating 17,807.37 acres. g NQ11 KNOW YE, that there is, therefore, granted bi th e UNITS3D STATES, unto the above-named claimant the land above- described; TO HAVE A.YA TO HOLD the said land Mith all the rights, privileges, immunities, and appurtenances, of whatso- ever nature, thereunto belonging, unto the said claimant, fareveit•} EXCEPTING AND RESERVING TO THE UNITED STATESt 1. A right-of-way thereon, for ditches and canals constructed by the authority of the United States. Act of August 30, 1990, 26 Stat. 3911 43 U.S.C. 945; and 2. A right-of-way thereon for the construction of t' railroads, telegraph, and telephone lines, as 1P1 prescribed and directed by the Act of !Sarah 12, . 1914, 38 Stat. 305. t` In TzsTtmoNY WNtnzoir,for umdrniped mamtised ofsctf of tRe r: ' 7 Borten. of Land Ilrnaparrrat, In st:ootdmece with the peorisdoas of the Act of fuse 17,1948 (62 SUL 476).bsa,In the name of the .,1+1:•. +rr . ~' Ualtod Serlrm, cavred there lelten to be x.mde Patent, mud the ' •i%:r U-'7"•'r. Seel of tha Bureau to be beteasto.Cixad. 'rr QlYtlt under a hand.Is AXCHORAC6, ALASAA �? fl1�',►i 1%�" dte THIRTIE 73 d,y cl JULY In the yset ' of am Lad one thousand woe buadred utd EIGHTY- ME � Y�.T �•�r; 1.. 1,l r- sal of In daa of the Uelted $totem the two bsrdred Robert Z. floreawn Chief, Branch of Lauds Patent Number and 1linerals Operation* i J.. 248 sLocx s B (r,na ur.vm..I a.a..a.Me TRACT A a (w,e oar r AMaaw..,r� MORMS A4NUE Aan.git¢LS 3132 199. a (d0'/t/w1t R,Obj �� n rV • fiv�od a+s�nei-ti� su.9D' � � - ,.•,o � — I 4 . . C x e9zs x•E� `}el.ai E S.1 518.39•Rdr rI4 Pl.'Lk roar t r mia 1/.•P.r cw v GP ,am..a Lure9 e9�3-Je'£ Mle Snwy - aua.N h.al �nmdlnlrnellen D%in 9y-2] �6 ra.wl...vewv U e S' m;9 Ptoe v awtt uAP C d I fFRTIFlTE CA OP OWNERSHIP AND DLUICATEON NOTES R roar 4 Jr`V al,d aavamw Ansn .! n�y Ms pt o:nh4 1 ThI.Sa9G.lakn b euo}at to the DIIY ar re.me ZmFp ��S 6. l plan a1 Ddl.nilan and br aarNrre.s [Qdapi r R.99+o1wn.. ;I 2 The bunt 10'vlan9 x1911 ar fty,and 5•.0.T al0.of F<rlr ivl Ilnn 1..nr..a a.a Ul91�y Eas.mrt No �� t aWclw�.nae be c9nalrvcl ar pl«.a.IMF � Z e UIWIY Eeaxnenf to.mui9 Flrlra bIM M•Wxty of� �� m 6 utG1Y ld an tM waaMalL IO y x. 'f .bra Clly Mano9r My of S 1 Iea.n99.I,RrMa,aO,Nr.aaun doD..lerlvanP mmaart Mnw xatr aalwm,p.1 y9 A.Frt nv CMKepg,nra lwS, Si,� 7d1, <' ^ Bw 151 I AK.99661 ve at.entl 9r.Naab Bre.y,Gd.4 NOTARYS ACKN EDCEMENT ..d.--at M.9..prly mry bt rpa4.d V 9felh IArp1C1rs(L rt.M I E f (DR W.3,J_..K EE Sl1RXRf9W AND SbCRN TD BO'ORE ME US L 4 Tryst A,tlae amm haw+n McMe A.v and p9p Dlatt =~U G Y - � a e ar.ln rood«c«..a..m.,[9mll.d ea L....n Clq I +�-————— LOT 2 - I D •I"'°ery .10 and oMr ouMrRed pr.mn.r,pr pat 9]-2]iP.6. u p r aczD zr L++�d'� 48.791 Sq. WASTEWATER DISPOSAL +` I Im I' o Cd�dx!�Cr.�i�.1✓t n/z�i Plena rr.ota.alr abpont.Mel meal'v9tlala+T I I £ � n NOTARrrw ALAA(A x --Mr OCMMi$40N EWx¢s cbsnnta an 9n Ola al IN.D.parDnml of I I I5 � ,,::a„ma,tal caa,r9alwn. I LOT 3 I; NaszD„•r .W� g 2 -I 26247 sp.ft. .w 9 7J" ew 8L"7 �l• N 8920'13"E nn,nrr x.n•u 341.58' n>aa 59.SORREL ROAD PLAT APPROVAL �g 1n1.war.aa w919.aa Dy Me K.ea PeN—B,mgt R—bg (60•Public R-O.W� umml..lan F .na s,oltan Zao.Alo r.nw p.,Fwna - - N 891893'E f>e.9••//1008.69 poly - BASIS OF BEARING PLAT 97-27 SRO. ' LESSEE CERIIFlCATE - �y lf`Mal.V a/P M of let; a e o•MwA 9ueu i1 �h664.y app.o+t thle DdlNelan. sVRVEroa'S cEa71FlGAT£ FOURTH OF DULY CREEK SUODMSION Kalr,.u xa.wlm. SWARD MARINE INDUSTRIAL CENTER emm�miao[I. /KPTa Raca 1°wa9iKt londtw e11ng b,RNi 5fat:et uo.lw�ml oi,i ADD177ON NUMBER ONE �Da1Da.]JOOD9 _ AnNarogA AK 99323 r.p.9m,ta a made 9�mv�r y drt« A.4lBWH57dY Pr r aetantuar. .c[le th.n� A PORAOx�6tOOf d.POOx tK Dr DULY O+EFiT R'W.tll a.nen� •�«i�c�o,a+a a..••.yon x tM Slate al Mora 3LlnA0 Y.W!/.�4N1f15}pIAL LYN]e1P NOTARY'S AMNOKLEUCEMEM elm,ere.o p /�ow THEW 0 swC w 1! LDG TFD YPa9]NE Sw I 2 :CL',i (DIlN9U/Iry MGM I EAST M Wilt�w..f5.1+ely rev cr - -; .a... SVSSCRRW ANp Sd'ORN TO BLrOAE ME TMS I T ._A QcoI 4 DAY Q �1. 20,-,+ — --S-�.E4 Pil •�Y. +.t 5'Ll/ARD AfCP9PWG pS1Y.CT .`"4rf9+ 1---_(laa �I 3 �'y-a9un�' •2 CLINE AND ASSOCIATES _ /?i!/y/L._..... .`d+°apt+?t• _ n.�1:40 �.A I.ANU SURVEYORS 416 dM A1�ENUE PO BOr 2T03 St--An 4966a NOTYRY�011 NAACO �T-COu.95$i0N�YPTES -;44-qlp>•�' '(� -Ma"n'�CYI_ v x • (907)27c-732. rAx(907)zzt-I;ose .`-• `� �'.y�<.9oa••31� DATE 01-12-Ot XAtE: [•.e� �•".�v..no ++Wn.� ORAMN 1etG 0!tAWdL x0:9l-000G K.P B.ME 4 99-IDd t 20D9-9T6 , 249 . � - 250 CITY OF SEWARD RECEIPT# 45919 410 ADAMS STREET 1/31/2023 + PO BOX 167 Received SEWARD AK 99664 phone: (907) 224-4050 From Lookup Name Payment Type Check # Amounts 11122 COMMUNITY DEVELOPMENT Check 0010707 Due 75.00 Tendered 75.00 Change Due Description: REPLAT FEE FOR BLOCK 6, SMIC Taxes Payable - Sales 4.91 Zoning Fees 70.09 251 CERTIFICATE OF OWNERSHIP AND DEDICATION pREUM\NARYi II, UMINARY I(..).I,—"..mh Nm I(..)—IN.—.r pf fn.—v.. ,.n..,.. RE and d.—.d h.r.On pna that I h.r.Sy adopt fhb Al-of subalvlsi.o entl yE{ a by my free non.aM--H.p n......t p 6. yy �f y 4 I C 5 uv.pna 9—H nnrh.fln..no n nn gL�CK BLU K I li Owner _1----------J L----------------- -———MORRIS AVENUE— TAT A5 TY MANAGER JANETTE BOWER,CI --- ------ TY OF SEWARD ————Al—N+.e— � P.O.BOK 16T Ij —posed+o uB c+s.vwrsI I SEWARD,ALASKA 99664 III ; PROPOSED Lot 5 B Notary Acknowledgement I;I Buh,.rlhea pna IIII III e.em M befpro me Ihb day _ — r sssE"txrs T' Hofpry Pub90 for Me SM1s of A ppkp My Comml..lon E"plr O a ^_ PLATS II +y p+c O usEu6u �_ 1)FOURTH OF DULY CREEK SUBDIVISION,SEWARD MARINE INDUSTRIAL CENTER L———_J (Plpf No.97-2)),CREATING Lot 1.BLOCK 6 AND THE UNSUBDNIDED  7 CID,, ++ REMAINDER OF BLOCK 6. 1�p =RDP�Y. Gy Z)FOURTH OF JULY CREEK SUBDMSION,SEWARD MARINE INDUSTRIAL CENTER. BUCK 7 y �' AN UN UNSUBOIVIDEDIDN NUMBER ONE(RIEMANDEROOr BLOCK CREATING Loiv Z t 3.BLOCK 6 u PR Lot�+kt a 3)THE SEWER MAIN IS A PRESSURIZED AND NOT—HABLE FOR USE. j . Scale: 1 = 1 Mi e I I o is I e II I PB9Ppsm zs'om.;x.cE FwscMcxr I II � I DH u-f I I '> P+mmsm THIS ��sEw o-° I ya PLAT ...—_._.wp cr,.u_Wn.. I J I r s+mutt Frs I jIL— EWE urc.•==Elrt�l I 10 _ j � LO� ut Lpf 1N I i FOURTH OF JULY wCREEK SUBDIVISION 9 SEWARD MARINE INDUSTRIAL CENTER —Ja DUC HESS RR�PLAT WARY I, IF—�, NARY PREI\M I li Ii ; Iw f i I PRELIM y+�,mpm..,+. s THE .1 SEWARD RECORDING DISTRICT SURVEYOR'S CERTIFICATE WASTEWATER DISPOSAL r .,.hy.. r nm I— ,p."ro9bf...a and n.--ro v-1-Ipna OF A Plpn.mr.pa.wm..alsPoeol.....m.....ampl.ry roywrom.m.pro pn n1.m , . yin9 A th.IS-A O,Al-- Thb plat royroAenM p eun.y made by .�Q.. �qS th.D.pp--pf EnNronmanfpl Con...wnon. Lang & Associates, Incl. -1 Br under my dlrocf-11 d'.. ", en enfe*111, Fero eelupIh �P' Profes6lonal �Mrvey04 DWTOF e"let o Um 49Td�G '9 Ilsoo p.M Ann Cltt OF SEWARD no.me eaienaord.of p cues of and survypreerntl*IStofe 01 A. f a F, L.ek P.O.BOK 167 inc1 ey SBEWARD.A4ASKA PLAT APPROVALro 9 ""' B ssa Pm vv by .K.nm Pemn.mp B. 9 pmm�9 c.mmLlOn m me ,� ®. .. —A.AERIAAA m. 9 H SCALE:I-=f00' DATE:06 FEBRUARY 2O Bo p 011lclol DRAWN:JCL SHEET 1 OF t PROJECT':ZS-015 JOB FILE: —45pp-SEWARD.d.g JELLISON AVE. ' x, 4 MUSTANG AVE. . ham. WF 5 ,tea. MORRIS AVE. w' �I O r„ n�=taw"' • �. �., , , � ...,,,_ `n �a�� ".�. n, Subdivide the Unsubdivided remainder 110 Olga Street of Block 6, Fourth of July Creek Subdivision SMIC = - _ Drawn By. Selena Soto Due to different data sources property lines and aerial imagery do not N o 100 200 400 Feet overlay correctly. Map is to be used for orientation and reference purposes only. Map ping Assistance by Alaska Map Company,LLC 253 DocuSign Envelope ID:3B293FA2-EF9A-46B6-BBF2-234964B38F16 Alaska Small Business Development Center KUSKA SBDC LAA BL[SIN)rS5 ENT'ERPRISI=INSTITUTE rill///rr/; April 27, 2023 City of Seward 410 Adams St Seward, AK 99664 Dear Mayor McClure, City Council, and City Staff, This letter serves as our quarterly report for the period January 1 to March 31, 2023. KellyAnn Cavaretta started her second year as the Seward Business Advisor and her efforts in the community are paying off. During the quarter, Kayak Adventures and Shearwater Cove provided glowing testimonials based on their experiences with her. After working closely with KellyAnn, both companies were able to obtain a commercial loan to grow their business. Outside of her typical duties, KellyAnn participated in Career Day at Seward High School on March 23, providing guidance to roughly fifty students on entrepreneurialism, which was well received. In regards to metrics, here is a summary of deliverables to the Seward community during the quarter: Client Hours: 156.8 Jobs Supported: 180 Total Clients: 38 Capital Infusion: $346,000 New Businesses Started or Bought: 1 Client Surveys: 100%positive This year, quarterly reports will feature lists of the top advising topics and top industries obtaining technical assistance from the Alaska SBDC in Seward. We are proud to highlight that our Seward Business Advisor has experience as a business owner or manager in Seward in three of the five top industries and in each area of advising, providing entrepreneurs with authentic insights. Topics Industries 1. Start-up Assistance: 49.7 hrs (32%) 1. Accommodation: 32.7 hrs (21%) 2. Financing/Capital: 27.1 hrs (17%) 2. Food Services: 30.1 hrs (19%) 3. Buy/Sell Business: 15.9 hrs (10%) 3. Retailers: 22.6 hrs (14%) 4. General Management: 7.1 hrs (5%) 4. Tour Operators: 21.8 hrs (14%) 5. Legal Issues: 4.1 hrs (3%) 5. Services: 17.1 hrs (11%) We would like to thank the City of Seward for their support of the Seward Business Advisor position. KellyAnn continues to perform at a high level and we are proud of her for becoming such a fantastic resource for the Seward community. Please do not hesitate to contact us if you have any questions. Sincerely, DocuSigned by: F3E1FHMADF4BD... Jon Bittner Executive Director Alaska SBDC -.00MMOMW :r •r7)786-7201 ALASKA SBDC 190199508 Anchorage - Fairbanks - Juneau - Kenai Peninsula - Ketchikan - Mat-Su Valley Seward Prevention Coalition Statement of Financial Position As of March 31, 2023 HYPER DAY CARE CITY DONATION TOTAL HYPER TOTAL ASSETS Current Assets Bank Accounts Edward Jones Investments 399,058.19 399,058.19 $399,058.19 FNBA Checking 65.11 6,663.20 6,728.31 $6,728.31 Total Bank Accounts $65.11 $405,721.39 $405,786.50 $405,786.50 Other Current Assets Workers Comp Prepayment 0.00 0.00 $0.00 Total Other Current Assets $0.00 $0.00 $0.00 $0.00 Total Current Assets $65.11 $405,721.39 $405,786.50 $405,786.50 TOTAL ASSETS $65.11 $405,721.39 $405,786.50 $405,786.50 LIABILITIES AND EQUITY Liabilities Current Liabilities Other Current Liabilities Payroll Liabilities $0.00 AK Unemployment Tax 31.40 31.40 $31.40 Federal Taxes(941/944) 422.42 422.42 $422.42 Wages Payable 1,806.10 1,806.10 $1,806.10 Total Payroll Liabilities 2,259.92 2,259.92 $2,259.92 Total Other Current Liabilities $0.00 $2,259.92 $2,259.92 $2,259.92 Total Current Liabilities $0.00 $2,259.92 $2,259.92 $2,259.92 Total Liabilities $0.00 $2,259.92 $2,259.92 $2,259.92 Equity Retained Earnings 2,576.07 448,459.22 451,035.29 $451,035.29 Net Revenue -2,510.96 -44,997.75 -47,508.71 $-47,508.71 Total Equity $65.11 $403,461.47 $403,526.58 $403,526.58 TOTAL LIABILITIES AND EQUITY $65.11 $405,721.39 $405,786.50 $405,786.50 255 Thursday,April 27,2023 01:30 PM GMT-08:00 1/1 Seward Prevention Coalition Statement of Activity by Class July 2022 - March 2023 Day Care City HYPER Donation Revenue Donations Total Revenue $ 0.00 $ 0.00 Gross Profit $ 0.00 $ 0.00 Expenditures Administrative Overhead Exp Bank Charges Facility Costs Total Facility Costs $ 0.00 $ 0.00 Other Expenses 462.24 Advertising/Sponsorship 20,000.00 Client Services Total Other Expenses $ 462.24 $ 20,000.00 Taxes 1,854.55 Wages 21,440.05 Workers Comp 515.59 Total Payroll Expenses $ 0.00 $ 23,810.19 Supplies 1,240.20 440.06 Total Supplies $ 1,240.20 $ 440.06 Travel 808.52 747.50 Total Expenditures $ 2,610.96 $ 44,997.76 Net Operating Revenue $ 2,610.96 $ 44,997.76 Net Revenue $ 2,610.96 $ 449997.76 y,Apr 27,2023 02:42:36 PM GMT-7-Accrual Basis 256 23 May 2023 May a Th June e Th SuMo TuW Fr Sa SuMo TuW Th Fr Sa 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Apr 30 May 1 2 3 4 5 6 2:OOpm PACAB Special Municipal 12:OOpm PACAB Ad Hoc Com Election _JYlxg... Mtg(Funding 7:OOpm Heat Loop Rescheduled- Project- P&Z Meeting Gateway Hotel (Rescheduled y....9) 7 8 9 10 11 12 13 5:30pm CC Spc 7:OOpm P&Z Mtg 6:!(Re:schedu]1ed _. _. (Rescheduled 7:OOpm CC Mtg ........... (Council Chamfers) PCetg7:OOesM Rm 14 15 16 17 18 19 20 6:OOpm 12:OOpm PACAB Rescheduled P&Z Work Session (Rescheduled 21 22 23 24 25 26 27 S:OOpm CC WS 6:OOpm P&Z Joint Mtg Work Session (Joint (Rescheduled w/Boards& from May 16) 7:OOpm CC Mtg 28 29 30 31 Jun 1 2 3 Holiday y... Council Calendar 1 5/18/2023 2:07 PM 257 23 June 2023 June e Th July e Th SuMo TuW Fr Sa SuMo TuW Th Fr Sa 1 2 3 1 4 5 6 7 8 910 2 3 4 5 6 7 8 11 12 13 14 15 16 17 9 10 11 12 13 14 15 18 19 20 21 22 23 24 16 17 18 19 20 21 22 25 26 27 28 29 30 23 24 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY May 28 29 30 31 Jun 1 2 3 4 5 6 7 8 9 10 7:OOpm P&Z Meeting 11 12 13 14 15 16 17 7:OOpm CC Mtg (Council 18 19 20 21 22 23 24 6:OOpm P&Z Work Session n (Council 25 (7:00pm 27 28 29 30 Jul 1 CC Mtg C.ha... Council Calendar 2 5/18/2023 2:07 PM 258 July 202 July August 2023 SuMo TuWa Th Th Fr Sa SuMo TuWe Th Fr Sa 1 1 2 3 4 5 2 3 4 5 6 7 8 6 7 8 9 10 11 12 9 10 11 12 13 14 15 13 14 15 16 17 18 19 16 17 18 19 20 21 22 20 21 22 23 24 25 26 23 24 25 26 27 28 29 27 28 29 30 31 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Jun 25 26 27 28 29 30 Jul 1 2 3 4 5 6 7 8 Holiday- Independence y 9 10 11 12 13 14 15 7:00pm CC Mtg LttZ ](Council 16 17 18 19 20 21 22 6:OOpm P&Z Work Session n (Council 23 24 25 26 27 28 29 7:OOpm CC Mtg C.ha.mb.er. 30 31 Aug 1 2 3 4 5 Council Calendar 3 5/18/2023 2:07 PM 259 August 2023 September 2023 August 2023 O23 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9101112 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Jul 30 31 Aug 1 2 3 4 5 7:OOpm P&Z 6 7 8 9 10 11 12 6:OOpm HPC 7:OOpm HPC Regular Meeting (Council 13 14 15 16 17 18 19 7:OOpm CC Mtg 6:OOpm P&Z (Council Work Session (Council 20 21 22 23 24 25 26 27 (7:00pm 29 30 31 Sep 1 2 CC Mtg C.ha... Council Calendar 4 5/18/2023 2:07 PM 260