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07242023 City Council Packet
Seward City Council Agenda Packet � 01t w � Y `tip j e r„ u, Photo by Kris Peck Monday, July24 2023 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska CITY COUNCIL MEETING AGENDA City Council Chambers, 410 Adams Street Please silence all cell phones and devices during the meeting Mayor Sue McClure Council Member Randy Wells Acting City Manager Norm Regis Vice Mayor John Osenga Council Member Kevin Finch City Clerk Kris Peck Council Member Liz DeMoss Council Member Robert Barnwell City Attorney Brooks Chandler Council Member Mike Calhoon Monday, July 24, 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 SCHEDULE 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 Consent Agenda passes all routine items listed under Item 7. 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 REPORTS A. Proclamations and Awards—None B. City Manager Report...........................................................................Pg. 5 C. City Clerk Report 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.) 7. CONSENT AGENDA(also marked with asterisk*) A. Minutes of Preceding Meeting 1)*Approval of the June 12, 2023 City Council Meeting Minutes....................Pg. 34 2)*Approval of the June 26, 2023 City Council Meeting Minutes....................Pg. 43 3)*Approval of the July 10, 2023 City Council Meeting Minutes.....................Pg. 51 B. Introduction of Ordinances—None City Council Meeting Agenda 7-24-2023 11 P a g e C. Resolutions on Consent Agenda 1)*Resolution 2023-082: Authorizing The City Manager To Purchase From Belyea Company One 1,200 Amp Siemens Circuit Breaker For Installation In The Spring Creek Substation In ANot-To-Exceed Amount Of$101,041.00....................Pg. 59 2)*Resolution 2023-083: Adopting Personnel Policy #2023-06: Children In The Workplace...................................................................................Pg. 68 3)*Resolution 2023-084: Authorizing The Matching Funds In The Amount Of $15,424 Towards The City's Share Of Funding For The Scheffler Creek Flood Mitigation Project,And Appropriating Funds........................................................Pg. 73 4)*Resolution 2023-085: Authorizing The City Manager To Enter Into A Contract With AK Tree Service, LLC, For The Purpose Of Clearing Transmission Line Corridors As Assigned By The City's Electric Utility In An Amount Not To Exceed $3 50,000.....................................................................................Pg. 89 D. Action Memoranda on Consent Agenda 1)*Action Memorandum 2023-009:Authorizing The City Manager To Approve A Services Agreement With Kelly Connect For The Provision Of Xerox Services............Pg. 98 2)*Action Memorandum 2023-010: Opposing Kenai Peninsula Borough Resolution 2023- 048, Regarding The Change In Election Date.........................................Pg. 104 E. Other Items on Consent Agenda 1)*Re-Appoint Bruce Jaffa to the Port and Commerce Advisory Board (PACAB) with a term set to expire in July 2026..........................................................Pg. 109 2)*Non-obj ection to the renewal of liquor license#5400—The Cookery,Restaurant/Eating Place........................................................................................Pg. 110 3)*Non-objection to the renewal of liquor license #5974 — Mermaid Grotto Cafe, Restaurant/Eating Place..................................................................Pg. 114 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 2023-086: Authorizing The City Manager To Enter Into A Lease With Duchess, LLC For Lot 5 Block 6 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Seward Recording District, Third Judicial District, State Of Alaska......................................................................................Pg. 118 2) Resolution 2023-087: Authorizing The Maintenance And Operating Agreement With JAG Alaska Inc. For An Additional Five-Year Period For The Shiplift And Dry Dock Area........................ .................................................................Pg. 154 City Council Meeting Agenda 7-24-2023 2 1 P a g e 9. UNFINISHED BUSINESS A. Ordinances for Enactment 1) Ordinance 2023-015: An Ordinance Of The City Council Of The City Of Seward, Alaska,Amending Seward City Code Title 6—Purchasing, Contracts And Professional Services For The City Of Seward Recodification Project. This ordinance had a public hearing on June 12, 2023, and was postponed to July 24, 2023............ .......Pg. 191 10. NEW BUSINESS A. Resolutions 1) Resolution 2023-088: Submitting The Question Of Amending Seward City Charter Chapter 13.4 Disposal Of Municipal Utility Plants And Utility Property At A Regular Election In And For The City Of Seward On October 3, 2023.....................Pg. 210 2) Resolution 2023-089: Submitting The Question Of Selling The City Of Seward Electric Utility To The Qualified City Of Seward Voters At A Regular Election In And For The City Of Seward On October 3, 2023....................................................Pg. 215 B. Action Memoranda -None C. Other New Business 1)Discuss Public Works Facility Bond................................................Pg. 220 2)Discuss Current Plans and Updates for Obihiro Exchange.................. .....Pg. 307 3) Summary of the Seward Electric Utility Ad Hoc Committee Meeting held on July 17, 2023................................................................................Pg. 309 11. INFORMATIONAL ITEMS AND REPORTS —None 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. ADJOURNMENT City Council Meeting Agenda 7-24-2023 3 1 P a g e City of Seward Acting City Manager's Report July 24, 2023 Mayor McClure and Council Members, Mr. Brumley from the USCG will be here on August 3rd and 4th to look at the new coast guard site at SMIC and finalize any last minute documentation. We have started preparing for the salmon derby August 12 to the 20th; the city staff has been very busy with projects. The Chugachmiut project is moving forward Metco is working on the site for the new construction. The city has met with our State lobbyist to discuss the governor's budget and possible future legislation; we will keep you informed of any new changes with the state. The Central Treasury report to the CMR, the acting finance director will be available for any questions. If you have any questions please feel free to reach out to me, you have my number. Board and Commission Attendance Attached is the Board and Commission attendance record. 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 IDescription Amount CITY SHOD 6/21/2023 N11OT;O%AND LO%V CO%TROL Sale Source:Rep acemer,,of broken 3A'VC1009B2LAD22X3654 9,708100 ROADS APED STREETS I -,;C7.�2C2s 1 C0.ISTRUCTt0%MACH \ER"r I So e Source:Repa!r/Reaiacemer,,o 1113 Road Grader front 16:234.95 ELECTRCC GENERAL 6/21i2023 GE',ERALPACIz2C;%C Oper,?urchase order for Opera.'nRSupp eland=re;gh, 25,C00,00 Thank you, Norm Regis Page 3 of 3 5 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 I I 1 1 Accounting Technician 11 1 1 Accounting Technician - Utilities 2 1 Accounting Tech Payroll 1 1 Accounting Tech Accounts Payable 1 0 TOTAL: 9 6 Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 2 Public Works Technician 1 1 Shop Foreman 1 1 Water and Wastewater Foreman 1 1 Water and Wastewater Operator 3 3 Building Maintenance Technician 2 1 TOTAL: 13 11 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 6 # 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 11 6 6 Harbor Worker I11 1 1 Seasonal - Summer Laborer Part-Time 1 1 Seasonal - Summer Laborer Full-Time 1 1 TOTAL: 14 14 T 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 2 TOTAL: 7 7 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 0 Executive Assistant 1 1 Campground Coordinator 1 1 Program Coordinator 1 1 Recreational Assistant 1 1 Maintenance Technician 1 1 Seasonal - Summer 15 10 Seasonal - Winter 2 0 TOTAL: 24 16 7 # of Department Job Title Positions Filled City Clerk's Office City Clerk 1 1 Deputy City Clerk 1 1 Executive Assistant 1 1 TOTAL: 3 3 Total number of authorized positions: 124 Total number of filled positions: 105 8 Assistant City Manager Stephen Sowell ➢ Public Works Shop Project: Thank you to R&M Engineering for the Presentation at the last meeting. Also thank you to City Council for approval to move forward with the project and complete the 65% design. As we get close to 100% design, we will get a better cost estimate, which will reduce the contingency and unknown items. ➢ City Council Retreat: We have scheduled a Council Retreat to take place at the Alaska Sea Life Center for Saturday, November 18th. Administration needs to confirm dates with Council on availability. The draft agenda includes: Open Meetings Act, Roberts Rules of Oder, a tour of the Sea Life Center, Boards and Commissions overview, and an overview of meetings and legislation. Administration requests discussion and direction from Council on which date would be a good alternate. ASLC has an event on November 11 so that date is not available. ➢ Public Safety Needs Assessment: Work continues on this project in collaboration with the design team and the goal is to provide City Council and the public a project update presentation in August. The project is on track 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 has completed the follow up meetings with the Department of Energy and is awaiting a grant award announcement. If funded, Phase 1 of the project will continue the engineering/design and stakeholder engagement elements. 9 Community Development Department Jason Bickling ➢ P&Z had a great work session on July I Ilh looking at sign codes and land use regulations. ➢ Due to some staff vacations, we are shifting some P&Z meetings for the rest of July. Planning and Zoning will be continuing work on scheduled business items and the Cemetery Master Plan on August 1st in a combined meeting and work session. ➢ We are continuing to work on platting pieces for the new Public Works Facility. ➢ We are continuing to work with the Utility Department regarding some easements, right of ways, and pole placements - considering possible future land use. ➢ We will be reviewing CUPs starting at the beginning of August. After we go through our CUP review process P&Z will be reviewing applicable code. Our code currently doesn't have a lot of teeth for following up and helping with non- compliance to the CUP. ➢ Chugachmiut is doing the groundwork for their new facility. We are still working through some property development pieces (utilities, access, etc.) as they finalize the engineering and designs. ➢ We are continuing to work through the compliance process with the attorney on the illegal STR that we filed suit with. I believe that we are getting close to resolution with compliance and fines/fees. ➢ We are still (patiently) waiting for the ADEC decision on the Jesse Lee Home Property review. I will let Council know immediately when we hear back from them on whether more mitigation will need to be done. ➢ Our long-term Temp is continuing to work on scanning and archiving for the Com Dev, Fire, Public Works, and Electric Departments. ➢ We are continuing with our normal business of processing of records requests, short term rental permits, replats, rezones, CUPs, and consulting regularly with 10 community members that have questions about the development and use of their land and helping with applications. GIS Report: - Selena is continuing to work with Public Works data. She has created an updated Water and Sewer Map so that the changes that are made in the field by Public Works will reflect on the map. - The web map for Conditional Use Permits has now been added to our Mapping/GIS webpage under the Planning & Zoning section. The CUPs and associated resolutions have been attached to the features themselves to make it easier to read the conditions. - Selena has finished updating the Muni Land Plan's mapping imagery for this year's future review. - Selena is working on a Future Land Use Map audit to coincide with Courtney's work on the zoning history map. Once this research is finished, mapping applications/layers will be added to the online zoning map as well as updating the printed versions. 11 Electric System Director Rob Montgomery • Chugach Electric Association (CEA) Rate Increase (Update) — If CEA's rate increase request is approved by the Regulatory Commission of Alaska (RCA) this fall, it will mean an increase of 6.5% for the City of Seward—as a direct wholesale customer— and a 3.5% increase for Seward's end-use customers. For the City, the increase will result in an increase of about $400,000 annually. End-use customers using a monthly average of 600 kilowatt-hours will receive an increase of about $5 per month. Ad Hoc Committee — Created a packet of information about Seward's electric utility to assist Ad Hoc members in their understanding of the utility and its many responsibilities. The packet included: utility mission and background; Fort Raymond fact sheet; utility operational and business functions; utility Railbelt commitments; and an existing organizational chart and a proposed organization chart. The Ad Hoc Committee's first meeting was Monday, July 17. Power Plant Generation — On July 12, the Fort Raymond Power Plant was brought online for 16 hours for testing. With the maintenance activities completed on the generators the past two years, the generators operated exceptionally well during the test run with approximately 6,000 gallons of fuel used. This amount was significantly lower than expected. Infrastructure Projects (Ongoing) — Sturgeon Electric continues to work to upgrade the last half-mile section of transmission line feeding from the Seward Highway, down Hemlock and along Dimond to the Fort Raymond Substation. Seward project manager Bryan Thrall reports that the work continues to go well and is proceeding as expected. Early efforts to rebuild and upgrade the Fort Raymond Substation are also going well. The delivery of the transformers to the substation, which was scheduled for mid- to late- July, has been delayed until mid-August. While not ideal, the delay gives crews extra time to complete their prep work in the substation. Department Overtime — Total overtime hours for the 4-man line crew, 2 plant operators and field engineer: Infrastructure 48.5 hours; Other 45.5. 2023 Rate Study (Ongoing) — The rate study being conducted by The Financial Engineering Company continues. The rate study remains on track for a presentation to City Council in September. Any increase in rates will go into effect in the fall. • Customer Job Orders —Between July 1 and June 15, the department completed 8 job orders with another 6 in the queue ready for the crew. Another 4 jobs are waiting for customers to complete work on their side of the meter before crews can work them. Crews also completed 20 underground locates and read electric meters on July 15. 12 Fire & Building Department Fire Chief Clinton Crites 0 2023 TYD Statistical Information: ®L � Fire & Life Safety Inspections: 211 with 95 violations noted. We NEED volunteers, if you or Emergency Calls: 213 someone you know is interested in serving your community, please New Building Permits Issued 2023: 32 give us a call at 224-3445 or stop with a total construction valuation of $24,520,522.00. by at one of our trainings on Wednesday evenings at 6:00pm. • Great on-going training! Come by and see what we are all about! • The volunteers are working to get the 1941 Ford Pumper Engine running again, any mechanics, individuals, or businesses that want to help support this effort please contact the Fire Department. The volunteers are looking for donations, mechanical skills, or sponsors to get this legend back running for parades and public education! Individuals interested in keeping your home safe from fire should contact the Seward Fire Department Community Risk Reduction division for information about fire prevention in your home. a t z r F -�- , l r 7 •0sewardfd@)cityofseward.net h r It was a busy Fourth of July and luckily no one was seriously injured. The volunteers did a great job getting two off the mountain this year. 14 I............................................................................................"I'll,............................"I.............. FIRE DEM. Become a Volunteer Firefighter or EMT by the Seward Fire Department for more information p Harbor Harbormaster Norm Regis ➢ We have been working on cleanup on both sides of the bay. ➢ The 50-ton and 330-ton Travelift are starting to slow down for mid-summer; the SMIC yard is looking empty. ➢ 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. ➢ We still have not received our DEC permit for the water system on G, K and L-float. ➢ Some people like that we are still working with some 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 is 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 received the Coast Guard Purchase and sale agreement the attorney and the Coast Guard are finalizing the document. ➢ Mr. Brumley from the USCG who is in charge of the purchase and sale agreement for the coast guard building/land will be in Seward on August 3rd and 4t" to look at the site and finish last minute details. ➢ The harbor is full moving vessels around trying to adjust to the always-changing dynamics of the harbor. ➢ The harbor has finished with the six-month permanent moorage contracts, we had 20 people give up their slips, and this is the first time in a while we did not have to do any slip relinquishments. We have painted several fire lanes, people are starting to park in them for long periods of time. 16 Seward Community Library & Museum Bailey Sayler MUSEUM WINDOW DISPLAY Early Alaska Railroad The summer Windows of History display features a history of the early Alaska Railroad. Learn about the railroads beginning as the Alaska Central Railroad in 1903, through its ups and downs until it was purchased by the federal government in 1915, and its official start as the Alaska Railroad Company in 1923 when President Harding came to Alaska to drive the golden spike at Nenana. On view are an assortment of early railroad photos from the Resurrection Bay Historical Society. 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 • Pyro craft-wood burning with stencils • Stargazing Upcoming Events: Movie @ 2 "Waves Over Seward," a movie about the 1964 Earthquake, will be hosted daily at 2 p.m. in the downstairs community room of the library. Admission for this event is priced at $5 per person, while children aged 12 and under can enjoy free entry. 17 I Summer Reading Challenge has started with over 100 patrons signed up. Each week we are taking our signed up participants around town to meet our Local Hero's within the community! 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 are currently taking passport appointments for new passports. The library does not do renewals. Please call 907-224-4082 to make an appointment. MOVI ( j) 2 WA VES OVER EFL SEWARD 1964 EARTHQUAKE &TSUNAMI 06-00 Admission Kids under 12 get in free Shows once a day at 2 PM Tuesday - Saturday 25 minutes Community Room Seward Community Library & Museum 239 5th Ave 907-224-4082 wvvvv_oityofsevvard.us.libmus S WR O off the Fr he w rd1 Litlbrrary . 18 ill i n n n 1'iirl •-`AEI t" 4 �e, x. L L � I n n � � C t h m4. yy I - 17 rr� r "Exploring Our Community Heroes! " This Summer I Reading Program has taken our readers on an incredible tijourney, connecting with Alaska Waste,The Fire Dept, j Library, Sea Life Center, and the Police department. Each local hero has graciously dedicated Wednesday mornings + r to enlighten and inspire, sharing their invaluable r knowledge and unwavering commitment to serving our community. Together, we're discovering the diverse ways they make our town shine. " #SummerReadingAdventures#CommunityHeroes #InspiringYoungMinds" ti 19 Sports & Rec The sun is shining and Sports and Rec is outside! We finished off June in AVTEC with a great showing at the No Man's Land Film Festival with 84 attendees. Stephanie Millane, Nicole Lawrence, Hannah LaFleur and Susanne Rieder were all wonderful speakers before the show at the AVTEC Gymnasium. The gym will be closed the month of July and reopen August 1st. The very next day we began our Adventure Camp with a group of 13 middle and early high schoolers. Our first adventure was a hike a Grayling Lake and fishing. We came up empty in the fish department, but the participants got to take home fishing poles and will get other great prizes thanks to our sponsors JAG and Metco! Our second Saturday adventure saw us panning for gold with Adventure 60 North then cooking desserts over a campfire and playing games by Resurrection River. This week we'll head out on the bay to test our kayaking skills. The 3rd and 4th of July were a bubbly time as Sports and Rec sent bubbles soaring across the landscape and kids played throughout the day while collecting mini prizes and treats! The rain couldn't stop the fun of ladder ball, cornhole, basketball and bubbles galore! Finally Youth Soccer has begun and we currently have 78 participants and expecting more over the next few weeks. Youth ages 3-18 can participate and receive socks, a water bottle and in a few weeks t-shirts thanks to our sponsors, Seward Coastal Charters, Seward Properties and Adventure 60 North! Keep an eye out for a community BBQ next Wednesday and a grand event in the Camp Stove Cook Off on Friday July 28th where the top backcountry chefs of Seward will put their cooking skills to the test against some of Seward's finest restaurant owners who will be judging! Upcoming Events: July 12, 19, 26: Outdoor Pickleball 6-8pm (Forest Acres Bball Court) July 19th: Community BBQ and Disc Golf Awards 6-8pm (First Lake Pavilion July 15,22,29: Youth Adventure Camp 9am-4pm Tuesdays & Thursdays July 11-August 10: Youth Soccer 5:30-8pm (Elementary School Field) July 28TH: Camp Stove Cookoff 5:30-9pm (Branson Pavilion) August 8th: Back to School Skate Night 6-8pm (AVTEC Gym) Campgrounds Continuing Campground Improvements. Filling in potholes. Reconfiguring Campsites Park Maintenance Continued Maintenance on Shower house Hoben Park Fountain is operational Dead Cottonwood removed near Branson Pavilion along Waterfront Woodlawn Cemetery Improvements Replaced `He will Provide Pantry' sign. Thank you Jim Sheehan& Maig Kennedy! New dog spot at 2nd Lake park area. 20 .. s IA WILL FOODPANTRY 9Or y a IN 1 a�w 11 ws 7/14/2023 Public Works Department Doug Schoessler - Director ➢ Public Works Director • US Army Corp of Engineers -Tunnel: -Had an on-site meet and greet visit with COL Jeffrey Palazzini,USACE Alaska District Commander (Incoming District Commander) and team. There will be more visits as the project moves forward. • Public Works Facility Relocation: -Council passed the resolution to proceed with the engineering to a 65% design. The new sewer line serving both Chugachmiut and Public Works is 90% complete thus allowing the clinic build to continue work and provided the sewer service line for the public works building. • Utility extensions: -The Ballaine Blvd water and sewer project's successful bidder was Metco Alaska. Construction this fall will complete the water and sewer mains for residential services at the current 6th Ave Public Works site. ➢ Buildings -Cold temperatures continue the need to run heat systems in all buildings. We will adjust or turn off boilers as necessary. ➢ Streets Department -Street crews have completed adding material to many of the alleys in town. The efforts and continuing work on the alley ways is helping to smooth the surface and lessen the puddling during rain events. -Painting crosswalks and street lines continues. We have been notified by the State DOT that they will only do minimal painting of center lines this year because of the 0-8 Project being done. -Sweeping has begun and will continue. -Street crews will continue to grade gravel roads and patch potholes throughout the spring. ➢ City Shop -Regular and preventative maintenance work continues and spring cleaning through the facilities outside and in has started. -Some major work is being done on some of our loaders and road graders. Some fixes will be costly enough to need council approval for the repair funds. More information will be provided as we receive quotes. Page 1 of 4 22 7/14/2023 ➢ Water & Wastewater Department -Some construction is already starting this season. The locate requests are coming in steadily. -Water systems and alarms are all showing normal and being monitored daily to ensure water quality is above standards. -Monthly testing of water and wastewater systems is being done and submitted to DEC as required by the permits. -We received the Ursa Major Award from the Department of Environmental Conservation for our operator certification and drinking water program. See award and letter below. Vrsa Vajor ARIt aterSysum Exce . .rice.Award The Department of Environmen.ta£ConservatWn recognizes Seward for achim ng a ndmaintainingsteffarco aparance m th the Operator Certicalion ftogram ez Drinking Water�t rogram in 2022 � t Cindy Christian Yartin Suzuki ,Drinking'WaterTrogram Manager Operator Certification Trogram Manager Page 2 of 4 23 7/14/2023 !-a,,,partineat of Envilroi,ii. : x--, ill Conser,, 'A"A L A S-KA �ti�Lh! 1'u;^J,: tY�art:� t7ircetor P.O. fox 1, _ Sc%.:!rd,A!,, ')9664 July 5,2023 Dear Doug Sclio,?Aer, On behalf c i tl ; ;,I ; I ir.:t i , 1 .1ioi;n1,:.ial Conservation(DEC),we want to congratulate the �: and(MN.S;1) 40 ' "j ,w )"In'Wing i 1 a Major status in Water System Excellence for 20221 I ht r+.nrk t 0111 '-\�iCn I1:1, 4-i,. ,,demoti,:trate stellar compliance with both the Drinking Water ani C,j)Lr.itiu`C'_:•t.i:c;;,..,r: •'I _ ,.n:; 1,a ioi ;orieunnoticed. The Water Systcm Excellence;Award is a coordinated effort bet«ecii .NDF..("5 1)rirrk1TI \'Voter Program and the 01),rotor('rrt lic;ition I'i i i••�i,:. I;I i't I,-I II.i al:L: lJ Ii'1IR Watersystems are L:%,,r !:ilnl I, ; il.-ir is-I .�:i.i.0'i'il: hr ar'.:1ik. ., .,l :.:1,1 reCoL,;l;',;;I ill oneot tiro tiers—Ursa Major and L,r4a Nil inor- The Seward met the following criteria: Ursa Major: Maintain 4 quarters of Operator Certification compliance and have no open, unresolved,or incurred Drinking Water violations during the award year- While DF.0 focuses on assistiriQ ti etr m ow1 wrs an(l operators with achieving and maintaining compliance,the responsibilit^, ii i i. .:; -,I.urrrts lies wltlt the system.Your demonstrated expertise and dedi.::a i.•;r i., -.r.l'G i, :I 1,1 1..,:,i 11 is an excellent benefit to your COMM unity-Thank you for your oi-I-k 1 i I i g cilbrts to provide safe drinking water to those served by your water system. Sincerely, Cindy Christian Martin Suzuki Drinking Water Program Manager Operator Certification PniV rao17 Enclosure_Ursa Major Certificate -------------------------------------------------------------------------------------------------------------------- Page 3 of 4 24 7/14/2023 ➢ 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. This work is almost complete with lab results expected soon.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 This work is almost complete with lab results expected soon.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. down the toilet. Also, never put grease down the drain. Sewer clogs due to these items cost the sewer utility thousands of$$ each year to fix the problems that could have been easily prevented. These losses of capital are to be reflected in monthly sewer service rates. Page 4 of 4 25 �7 L-D — — re) O ko rn ko Ln C7 C7 O O O rn N O N r-~ a] O 0.a a] a)da da m N O N ai a) u7 u7 u7 o >W >W >W r-7 Ln In ul r� 0 r� ri 0.a 0.1 O O da O O Ln r rn fV O N Ln M rn rV N O O rV N i--I ul .11 a] a] w to -I- da dA O dA dA O dA d+ ,i- ,i- ,i- ,i- ,i- -I- Ln `- M rn rV N O O rV N ,Vy � ur Ln Ln Ln Ln rn rn ,l� •1� •1� i 7 ,1� d - dA Qa Qa Qa Q] 9] 9] Ln rn M rV N O O rV N } co ul i.f5 1.f5 1.f5 1.f5 1.f5 rV l.fY 1.f5 ul w A7 A7 w w ai ai O ai O 0.J a) O rn M N CD CD Ln d� 97 SU 97 w 0.7 _ 97 O 97 O 97 O O CD CD L, Ln LA LA an an da 0.a O 0.1 aj ai _ 0 O w O O O O rn � ;� m >- C C CD CD C Lfi Cry C da A7 A7 0.7 O O 0.A O O O w O 0.a rn m ry � 0 0 r� ry da A7 A7 w Cl0.7 aiO w0.a 0.a da da rn r-7 rn ry ry ry 0 0 0 ry ry ry CD .--� da 0 0 w w 0.7 ai O w w w da O A7 w w w 0.7 C C C C 5 u O c 0 °5 C J N E E 0 E E o E ra E O U C3 a O 24, } w w ` CL 0 C Jam--' U 0.7 O - c — Mn V -0 ra ra c ;-a ;b o ro ,� - L rs as I o na - asasr1 H a 2 r, LJ7 Q o- Cn > n CJ 2 co 2 � oo -� A ,r CMR Finance Department 7FinaZe Jusino DeputyDirector 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 as well as developing billing manuals and user guides to assist with the outsourcing process. This includes a collection program to work on collecting old outstanding balances, which has resulted in the first distribution from the collection agency. Util-Assist will be ready for the next billing cycle (August). The City and Util-Assist are in the initial steps of the transition with the outsourcing process moving smoothly. The finance department is assisting with information and analysis of the ongoing water/sewer rate study and the electric rate study. Annual Audit: The Annual Comprehensive Financial Report (ACFR)for the December 31, 2021 audit was awarded the GFOA Certificate of Achievement for financial reporting. This is the highest level or recognition in governmental accounting for recognizing complete and transparent financial reporting. This is the first time the City has received this award in several years. The 2022 fiscal year audit fieldwork with the auditors from Altman, Rogers & Co., has concluded and the final piece of information from Providence has been provided to the auditors. The City expects a draft of the report soon and will review and complete the process as quickly as possible with the goal of receiving the GFOA Certicate of Achievement again for the December 31, 2022 ACFR. Staffing: The finance department continues to struggle with retaining staff but does expect some relief with the outsourcing of the utility billing position. 27 A ,r CMR Finance Department 7FinaZe Jusino DeputyDirector 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. Only a couple of sections of the fiscal manual remain to be updated. Currently working with Title 6 and Title 14 with other departments' head for review and analysis. Carmen Jackson Update: The Carmen Jackson team continues to work closely with the finance department to assist with the Util-Assist transition as well as directly assisting with the billing process until the outsourcing is complete. Additionally, CJCPA continues to provide ongoing accounting services on a daily basis and continues to assist with high level finance department operations. The Carmen Jackson team along with the finance department and administration 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. Central Treasury Report: The attached Central Treasury Report provides the unrestricted cash available by fund as of July 15, 2023. These amounts fluctuate on a daily basis and are reconciled every month. The amounts reports on the agenda statement items for the council represent the available fund balance/net assets for the impacted funds. This is a longer term perspective that takes into account the assets and liabilities of the fund, which results in different numbers than the Central Treasury Report. Any funds with negative cash on the Central Treasury Report are either waiting for funding for expenses already paid or are in the process of being closed out, negative cash for a fund does not represent a problem with operations. Attached with the Central Treasury Report is financial information for the funds that would be utilized for the upcoming resolutions. 28 City of Seward,Alaska. Central Treasury Report 7.15.23 The attached Central Treasury Report provides the unrestricted cash available by fund as of June 30, 2023. The intent of this report is to provide transparent financial information to the public. These amounts fluctuate on a daily basis and are reconciled every month; however, these numbers are not audited. The amounts reports on the agenda statement items for the council represent the available fund balance/net assets for the impacted funds. This is a longer-term perspective that takes into account the assets and liabilities of the fund, which results in different numbers than the Central Treasury Report. Any funds with negative cash on the Central Treasury Report are either waiting for funding for expenses already paid or are in the process of being closed out, where the City is required to expend the funds prior to requesting reimbursement for expenditures; negative cash for a fund does not represent a problem with operations. For example, when the City conducts repairs following a major disaster declaration, it can take multiple years before the City receives reimbursement from FEMA for its costs. Funds in Negative balance: • Fund 11113 Harbor CPVKPB —Res.2023-066 Funding for Seward City Tours Services. The City will receive funds from CPV KPB • Fund 11422 NE Harbor Launch Project City Funding—Res.2022-072 City spends $1,573,162.80. • Fund 11433 NE Harbor Launch Project State Funding—Funds received per agreement $2,899,553.25 Fund is closed. • Fund 11431 G, K & L Floats State Funding—Res.2021-113.The City will be reimbursed from State Grant. • Fund 70061 FEMA 2022 Lowell PT Rd Land Slide (Cat A)—FEMA disaster declaration, the City will be reimbursed. • Fund 70062 FEMA 2022 Lowell PT Rd Land Slide (Cat B)—FEMA disaster declaration, the City received funds on 7.03.23. Attached with this report is the fund balance report for funds that would be utilized for upcoming resolutions. If you have questions or require additional information, please feel free to contact acting finance director Sully Jusino at(907)224-4059, or by e-mail at sjusino@cityofseward.net. 29 Central Treasury Report,July 15,2023 Cash and Investments 2022 2023 Wells Fargo Checking 9,893,165.98 8,077,834.21 Clearing Account 0.00 0.00 Undeposited Funds(Cash in Transit) 97,672.58 238,946.79 Investments 43,012,432.28 43,542,253.16 53,003,270.84 51,859,034.16 By Fund: Fund Name Fund Number General Fund 01000 7,580,600.24 7,893,088.81 Teen Council Agency Fund 02000 6,093.64 6,155.27 Motor Pool Internal Service Fund 03000 2,408,252.16 2,187,465.81 Compensated Absences Fund 03100 465,144.79 500,180.86 Harbor Enterprise Fund 11000 1,534,610.14 682,700.79 Harbor MRRF Fund 11001 740,682.56 794,152.56 Harbor Passenger Fee Fund 11002 795,860.65 524,293.55 Harbor CPV State 11103 1,604,354.49 1,745,002.84 Harbor CPV KPB 11113 216,741.98 (902,239.02) NE Harbor Launch Ramp Renovation Project-City 11422 624,690.33 (2,083.33) NE Harbor Launch Ramp Renovation Project-State 11423 (1,382,004.38) 0.00 G,K&L Floats City 11430 (1,159,073.15) 705,539.15 G,K&L Floats State 11431 73,783.99 (38,681.12) Cathodic Protection Project 11440 13,679.80 13,679.80 SMIC Enterprise Fund 12000 277,756.95 141,292.28 Parking Enterprise Fund 13000 465,024.77 579,538.76 Electric Enterprise Fund 15000 7,856,332.11 4,372,383.72 Electric MRRF Fund 15001 957,301.76 957,301.76 Transmission Line-City Funding 15310 0.00 0.00 Electric Critical Infrastructure Fund 15340 2,849,356.90 350,436.12 Electric Nash Road Infrastructure Project 15351 4,797,093.46 5,204,487.48 Water Enterprise Fund 17000 1,810,826.01 2,380,654.97 Water MRRF Fund 17001 852,572.15 852,572.15 Water ARPA Fund 17100 577,195.00 206,680.90 Lowell Canyon Water Storage Tank 17330 222,914.29 222,914.29 Wastewater Enterprise Fund 18000 2,367,474.63 2,742,333.77 Wastewater MRRF Fund 18001 742,025.05 742,025.05 Wastewater ARPA Fund 18100 577,195.00 264,757.76 Hospital Enterprise Fund 19100 316,328.49 1,129,986.89 Healthcare Facilities 19102 927,284.17 927,284.17 Seward Mountain Haven Enterprise Fund 19200 9,472,307.57 12,278,011.20 Seward Historical Tour 30016 349.00 349.00 SCHC-City Funding 30040 0.81 0.81 Bus Transportation-CPV Funds 30051 85,507.50 931,524.18 Erosion Fund 30070 2,150.00 2,150.00 FEMA 2022 Lowell PT Rd Land Slide(Cat A) 70061 0.00 (1,013,819.97) FEMA 2022 Lowell PT Rd Land Slide(Cat B) 70062 0.00 0.00 Capital Acquisition Fund-City Funding 80010 645,673.44 566,423.44 Animal Shelter 80015 641,106.99 68,252.10 Streets&Sidewalks-City Funding 80020 74,554.09 74,554.09 Energy Efficiency-CityFunding 80040 101,211.69 93,784.69 Developer Reimbursement Program 80071 1,013,895.50 1,925,578.54 ARPA-LGLRR 80084 1,806,416.27 1,748,320.04 1LH-City Funding 80090 40,000.00 0.00 Total Pooled Cash and Investments by Fund 53,003,270.84 51,859,034.16 Note: *The above is the pooled cash balance of each fund,which simply represents the amount of available cash held by each fund.This differs from the fund balance in that the fund balance also considers the fund's current assets and liabilities. PreparWnance 01000 General Fund July 15,2023 7/15/2023 Resolutions for FY23 Amounts Assets Res.2023-007 R&M T.O2734.28 28,184.00 Assets to date 7/15/23 10,595,764.86 Res.2023-010 Open Gov for Comm Dev. 45,746.00 Total Assets 10,595,764.86 Res.2023-011 Metco-On Call Snow Removal 38,000.00 Res.2023-017 Animal Shelter Donations 20,611.57 Liabilities Res.2023-031 R&M Task Order Public Safety 201,492.00 Liabilities to date 7/15/23 1,582,820.49 Res.2023-037 Legal Action 10,000.00 Total Liabilities 1,582,820.49 Res.2023-042 R&M T.O 2734.33 40,000.00 Fund Balance/Net Assets Res.2023-054 Util-Assist Contract 138,000.00 Working Capital-Restricted 1,500,000.00 Res.2023-065 PFM Financial Advisors Contract 30,000.00 Insurance Reserves-Restricted 597,995.19 Res 2023-067 Altman Rogers&Co Contract 20,700.00 Hospital Line of Credit-Restricted 500,000.00 572,733.57 Assigned-Miscellaneous 10,225.00 Unassigned Fund Balance 9,741,305.40 Transfers-In 2,981,051.36 Transfers-Out (2,990,889.00) Total Fund Balance/Net Assets 12,339,687.95 Revenues Revenue to date 7/15/23 4,722,410.30 Total Revenues 4,722,410.30 Expenditures/Expenses Expenses to date 7/15/23 8,049,426.88 Total Expenses 8,049,426.88 Estimated Available Total Fund Balance* 6,414,949.18 *Unaudited The month of July has not been closed. These assumptions are not considered formers resolutions that will affect FY23. PreparedgU Finance 15351 - Electric Nash Road Infrastructure Project July 15, 2023 7/15/2023 Resolutions Amounts Assets Res.2021-087 ARPA 577,195.00 Cash to date 7/15/23 5,204,487.48 Res2022-024 Sturgeon Contract 2,997,093.00 Total Assets 5,204,487.48 Res2022-026 Electric Supplies 1,800,000.00 Res.2023-052 EPC Contract 3,595,107.00 Liabilities 8,969,395.00 A/P Trade to date 7/15/23 12,873.72 Encumbrance to date 7/15/23 1,781,113.21 Encumbrance in progress to date 7/15/23 3,595,106.62 Total Liabilities 5,389,093.55 Fund Balance/Net Assets Unassigned Fund Balance to date 7/15/23 577,195.00 Transfers-In 8,392,200.08 Total Fund Balance/Net Assets 8,969,395.08 Expenditures/Expenses Expenses to date 7/15/23 3,777,781.32 Total Expenses 3,777,781.32 Estimated Total Fund Balance* (184,606.07) * Unaudited The month of July has not been closed. Prepare&2Finance 80010 -Capital Acquisition Fund -City July 15, 2023 7/15/2023 Resolutions Amounts Res.2022-089 GF to CAF 746,000.00 Assets Res.2022-089 Sidewalks Project (350,000.00) Cash to date 7/15/23 566,423.44 Res.2022-116 Hilltop DRP (1,425,000.00) Total Assets 566,423.44 Res.2019-048 Lowell Point Stabiltation (63,750.00) Liabilities Encumbrance to date 7/15/23 350,000.00 Total Encumbered 350,000.00 Fund Balance/Net Assets Unassigned Fund Balance to date 7/15/23 1,309,173.44 Transfers-In 746,000.00 Transfers-Out Total Fund Balance/Net Assets 630,173.44 Expenditures/Expenses Expenses to date 7/15/23 63,750.00 Total Expenses 63,750.00 Estimated Total Fund Balance* 216,423.44 * Unaudited The month of July has not been closed. PrepareNFinance City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale CALL TO ORDER The June 12, 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 Norm Regis, Acting City Manager Stephen Sowell, Assistant City Manager Jason Bickling, Community Development Director Sully Jusino, Deputy Finance Director Tammy Nickell, Human Resources Manager Brooks Chandler, City Attorney Karen Corrigan, Acting Deputy City Clerk Excused—None Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Alan Nickell, outside city limits, stated he was the Police Chief and announced the grand opening for the animal shelter was held and they received an additional $818.11 for donations, thanked the citizens and appreciated the support. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/DeMoss) Approval of Agenda and Consent Agenda Mayor McClure requested Action Memorandum 2023-006 to be removed from the consent agenda. Motion Passed Unanimous 34 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale The clerk read the following approved consent agenda items: Approval of the May 22, 2023 City Council Meeting Minutes. Introduction of Ordinance 2023-016, Amending Seward City Code Chapter 5.20 Improvement Districts. Introduction of Ordinance 2023-017, Amending Seward City Code Chapter 2.15 Ordinances and Resolutions. Resolution 2023-070, Accepting The State Of Alaska, Healthy & Equitable Communities Grant In The Amount Of $49,162.00, Acting As A Pass-Through Agency For Seward Prevention Coalition And Appropriating Funds Proclamations and Awards -None City Manager Report Acting City Manager Norm Regis advised that the harbor had a second vessel sink in the harbor due to unknown causes and there was no fuel spill from it. Community Development Director Jason Bickling advised that preparation for a planning and zoning meeting required four staff members' time to prepare the materials and attend. He added there was an inconvenience when commissioners do not attend with no previous notice. Agenda items for the commission were delayed due to the cancellation of the meeting when a quorum cannot be met. Deputy Finance Director Sully Jusino said that the net billing is planned to be in use in July with the help of the company Utility Assist. Bickling stated that there were three short term rental businesses not currently licensed and his department was working with the owners to resolve the issue. Regis advised that the road construction on Third Avenue would be an inconvenience for the businesses during the day, but citizens complained that they cannot sleep at night due to construction noise. Electric Lineman Brian Thrall, said the generators leased for the Seward Industrial Marine Center project required additional workers to maintain them, thus overtime hours should be expected. Utility Manager Rob Montgomery said that he believed the rate increase for electricity might be as high as 15%. City Clerk Report was in the packet. 35 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale City Attorney Report City Attorney Brooks Chandler clarified that executive sessions were appropriate for the city council to receive legal advice from the city attorney. Chandler added that actions by the city council would always be made in public and not in an executive session. Other Reports and Announcements Kenai Peninsula Borough Assembly Report was not presented. Presentations Presentation on updates from the Kenai Peninsula Economic Development District PUBLIC HEARINGS Ordinances for Enactment Ordinance 2023-015, Amending Seward City Code Title 6 Purchasing, Contracts and Professional Services (This ordinance was introduced on May 22, 2023, and was coming tonight for public hearing and enactment) Motion (DeMossBarnwell ) Enact Ordinance 2023-015 Regis requested the ordinance to be postponed, due to corrections required, until the city council meeting on July 10, 2023. Notice of the public hearing being posted and published as required by la w was noted and the public hearing was opened No one appeared and the public hearing was closed Motion (Osenga/Wells ) Postpone Ordinance 2023-015 until July 10, 2023 Motion Passed Unanimous Resolutions Requiring Public Hearing Resolution 2023-068, Updating the Municipal Lands Inventory and Management Plan to Include Recommendations to Improve and Designate Parking and Access at the Fourth of July Beach and Plat the Area into One Parcel and Rezone to Park. Motion (Osenga/DeMoss ) Approve Resolution 2023-068 Bickling stated that funding would be required for the replating and rezoning costs. Notice of the public hearing being posted and published as required by la w was noted and the public hearing was opened 36 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale Carol Griswold, inside city limits, spoke in support of the ordinance and stressed the importance to protect the area as a park and to provide increased parking for the public. No one else appeared and the public hearing was closed. Finch stated his support for this resolution. Motion Passed Unanimous Resolution 2023-069, Updating The Municipal Lands Inventory And Management Plan To Include Recommendations To Increase Day Use Parking At The Spring Creek Campground, Request An Easement To Maintain Beach Access To The North Of The Campground, And Plat The Area Into One Parcel And Rezone To Park Motion (DeMoss/Wells) Approve Resolution 2023-069 Bickling spoke on the point that access the area to the north was actually trespassing on private land and this resolution allowed for a conversation with the owners and to provide for better signage in the area. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened Carol Griswold, inside city limits, spoke in favor of the resolution and recommended a change to include the city owned beach in the language. No one else appeared and the public hearing was closed McClure suspended the rules to allow discussion with Griswold on a graphical correction on a property line she suggested. The city council concluded that the graphical representation on property lines was correct. McClure went back on the rules. Motion Passed Unanimous UNFINISHED BUSINESS Resolutions Resolution 2023-046, Authorizing The City Manager To Enter Into A Recruitment Services Contract With GovHR In The Amount Of$30,000.00, And Appropriating Funds (This resolution was postponed on April 24, 2023) Regis requested to postpone until the July 10, 2023 city council meeting. 37 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale Motion (Osenga/DeMoss) Postpone Resolution 2023-046 until July 10, 2023 Motion Passed Unanimous NEW BUSINESS Action Memorandum 2023-006, Opposing KPB Ordinance 2023-11. Motion (DeMoss/Finch) Approve Action Memorandum 2023-006 McClure advised that the memorandum was created due to possible borough legislation that would have eliminated the city's position on the borough's planning and zoning commission. However, the borough had revised their legislation and the city's seat on the commission was secured. McClure advised that the city council did not need to oppose this ordinance. Motion Failed Unanimous Other New Business Future Of The City of Seward Electric Utility Montgomery presented to the city council four options to consider for the electric utility: Option 1 —Do Nothing, Option 2 - Rebuild the Utility, Option 3 — Services Contract, Option 4 — Place Sale on Future Ballot. At Barnwell's request, Montgomery elborated further on Option 2 — Rebuild the Utility. The additional six positions were required to properly operate the electric utility and perform the upgrades. Salaries needed to be increased to be competitive in the industry. Montgomery spoke on the aging infrastructure and replacement. He advised that another seven to eight million dollar bond would be needed to upgrade the system. Barnwell asked why Seward had difficulty being self reliant with electricity compared to other small Alaskan towns. Montgomery replied that because Seward's electricity was tied into other electrical systems which have special requirements and specifications that must be met. He added that Seward had a seat on several railbelt power projects and had to compete with other electric utility providers in the area. The city council discussed the requirements and timelines required to place the sale of the electric utility back on the ballot. Chandler advised there were no restrictions on when an item could be brought back to an election ballot, only that a 60 day notice was required for a special 38 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale election. Regis advised a 53 day notice was required for a proposal to be placed on the ballot for a regular municipal election. DeMoss noted that Option 2 —Rebuild the Utility would require a large amount of time to research the funding and budget required to move forward in rebuilding the utility and adding staff. Calhoon recommended an ad hoc committee could perform research for Option 2 and Option 4. Council determined that the administration could bring forward Option 4, to place the sale of the electric utility on the ballot for the regular municipal election in October this year, leaving the ad hoc committee to handle researching Option 2. Motion (DeMoss/Osenga) Direct the clerk to advertise for a seven member ad hoc committee, consisting of four from inside city limits, three from outside city limits within the utility service area, to discuss the current status of the Seward Utility. Motion Passed Unanimous Council recessed the meeting at 9:21p.m. Council resumed the meeting at 9:27 p.m. Sixth Avenue Public Works Facility Location Determinations Sowell mentioned the location on Sixth Avenue was to be prepared for sale and rezoned to Urban Residential. Administration requested direction from the city council as to what lot sizes they wanted the property replated. Administration's recommendation were for 30 feet by 100 feet and 60 feet by 100 feet lots. Administration suggested that the lot could be sold to a developer as another choice. Wells stated that the lots should be saved for individual purchases. Motion (Wells/DeMoss) Direct Administration to exclude a developer from purchasing the property and leave to purchase by the individual. Motion Passed Unanimous Motion (McClure/Wells) Direct Administration to create 60 feet by 100 feet lots on Ballaine Blvd. and 30 feet by 100 feet lots on Sixth Avenue. 39 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale Calhoon stated that creating lots of 45 feet by 100 feet on Ballaine Blvd would add additional lots. Wells stated that having a plat drawing with different layouts would assist the city council in a decision. The motion was withdrawn by McClure with no objections from the city council. Council directed administration to bring forward two plat designs: 30 feet by 100 feet on Sixth Avenue, 60 feet by 100 feet on Ballaine Blvd, 30 feet by 100 feet on Sixth Avenue, 45 feet by 100 feet on Ballaine Blvd. for the city council to give direction at the June 24, 2023 city council meeting. Council Member Finch Requests Appointed Officials To Draft A Resolution To Repeal Personnel Policy#2023-01 Phone Use and Recording Policy Motion (Finch/DeMoss ) To Draft A Resolution Repeal Personnel Policy #2023-01 Phone Use and Recording Policy. Osenga clarified if policy 2023-01 was repealed in its entirety, that the city would default to following state law. Brooks stated the city council could create more restrictive policies than the state law required. The difference he added would be if the violator could be charged with a crime or with a condition suitable for discipline. Finch stressed the state had a one person consent for recording and that the current approved policy took that legal right away from staff. Wells pointed out that the policy did not stop the person from recording, nor did it require their permission. The employee just needed to advise the other party of being recorded. Motion Passed Yes: Wells, DeMoss, Calhoon, Finch, Osenga No: Barnwell, McClure CITIZEN COMMENTS Skip Rierson, inside city limits, hoped that the utility could be sold, yet agreed that we have a utility to run. He suggested that Seward may need to create a board of directors to help with the utility. Skip emphasized that the finance department would need help researching the information for the utility. 40 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale Cindy Ecklund, inside city limits, verified that the City of Seward did meet the minimum population requirement to have a seat on the Kenai Peninsula Borough Planning & Zoning Commission, and that the city's seat on the commission would remain in place. Beck Dunn, inside city limits, thanked the city council for the work on adding more residential space. She recommended that some of the 30 feet lots be expanded to 40 feet. She thanked the city council for moving to create an ad hoc committee and for including those out of city limits to participate. Bob Valdetta, inside city limits, wanted someone like Norm Regis as city manager. He advised the city council to not cut parts out of projects to save money because past projects have proven the shortfalls of this action. Alan Nickell, outside city limits, stated he was a city department head and that pay wage was a problem for all of the departments. Employees under pay scale grade 6 could not live here on their city wages. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Regis noted that the finance director position was $20,000 less than the normal average pay for this position. Sowell appreciated the city council review of board and commissioner attendance and the direction on the municipal land plan. He thanked Tim Dillon for his dedication to his position on KPEDD and would miss the base of knowledge that he provided. Barnwell thanked Tim Dillon for his presentation. He believed the ad hoc committee would be a good start to our resolution of the electric utility issue. He thanked Montgomery for his presentation. He mentioned that the Obihiro planning committee had met three times and stated they would need to request more funds at a future city council meeting for the adult delegation traveling to Obihiro. Finch thanked community development for what they are doing at the Spring Creek and Fourth of July Creek recreational areas. In regard to the public works property, Finch was interested in what the selling price of the individual lots would be. Wells thanked everyone who helped with the animal shelter opening. Thanked the Seward Pride Alliance for hosting a well-organized, positive event. He thanked the administration for creating clear reports and answering questions. Wells thanked the city attorney for the detailed explanation on executive sessions. Calhoon reminded everyone that Wednesday was Flag Day, and patriotic proclamations will be coming forward in the future. Calhoon stated that our nation's flag represents all of us and that flag allows all other flags to fly without issue. 41 City of Seward,Alaska City Council Meeting Minutes June 12, 2023 Volume 42, Pale DeMoss stated that the city needed to look at employee housing. Businesses have built their own housing for employees, and the city should consider the same. DeMoss stated there should be another wage study due to the large increase in wages that resulted from the recent COVID crisis. She congratulated Nickell on the animal shelter opening. She thanked Seward Pride Alliance for their event. Osenga thanked Tim Dillon for everything he had helped Seward with. Mayor McClure stated she enjoyed swearing in the new City Clerk Kris Peck. She met with several other mayors who spoke highly of the work our city council was doing in Seward. McClure attended the groundbreaking ceremony for the Chugachmuit Clinic and the animal shelter opening. She mentioned the solstice cemetery tour would be held at the city cemetery at 10:30 pm on June 21, 2023. ADJOURNMENT The meeting was adjourned at 10:45 p.m. Karen Corrigan Sue McClure Acting Deputy City Clerk Mayor (City Seal) 42 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale CALL TO ORDER The June 26, 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 Norm Regis, Acting City Manager Stephen Sowell, Assistant City Manager Kris Peck, City Clerk Sam Severin, City Attorney (telephonically) Excused—None Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING William Karner, outside city limits, said he had always enjoyed the Mount Alice Campground. The access was great for fishing and recreation. Kamer found the campground staff to be friendly and helpful. He felt the owner Tim McDonald had been a terrific host to the visitors. Russ White, outside city limits, said he was the program coordinator for Parks & Rec. He spoke in support of Resolution 2023-071 for the facility use agreement with AVTEC. Tim McDonald, inside city limits, said he was trying to comply with the city requirements for his Mount Alice Campground. He felt there was a lack of due process and that he was never given an opportunity to present his side of the story. Kat Sorensen, inside city limits, noted she was the Chamber of Commerce Director. Sorensen addressed some upcoming road closures for the 4th of July celebration. She thanked Obihiro, Japan for sending the Mt. Marathon trophies and noted they were popular amongst the racers. 43 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Wells) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: The introduction of Ordinance 2023-018,Approving the Land Use Amendment to Rezone a Portion of Proposed Tract 5A,Dairy Hill Subdivision Addition No. 1,from Single-Family Residential(R1) Zoning District to Resource Management (RM) Zoning District (This ordinance was introduced tonight and will come for public hearing and enactment on July 10, 2023) The introduction of Ordinance 2023-019, Amending Seward City Code; 15.10.140(b)Definitions, Pertaining to Bunkhouse,Lot, and Long-term Rental; 15.10.222 Development Requirements Table, Updating the Minimum Buildable Lot Size for single-and Two-Family Residential Zoning Districts, and Adding Table Notes for Lot Frontage; and 15.10.226 Land Uses Allowed Table,Adding Long- term Rental, and Changing the Outright Use of Dormitories in the Office Residential and Institutional Zoning District to Require Conditional Use Permits (This ordinance was introduced tonight and will come for public hearing and enactment on July 10, 2023) Resolution 2023-071, Authorizing The City Manager To Enter Into A One Year Facility Use Agreement Between The City Of Seward And The Alaska Vocational Technical Center For The Use Of The Student Services Building For Public Recreation Resolution 2023-072, Adopting Personnel Policy #2023-05: Computer Use Policy Action Memoranda 2023-007, Removing Commissioner Monaco From The Planning & Zoning Commission Action Memoranda 2023-008, Accepting the Resignation of Commissioner Staggs From The Planning& Zoning Commission Appoint Todd Mashlan to the Historic Preservation Commission with a term to expire May 2025 SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Mayor McClure presented the Life Saving Award & Proclamation to Officer Josh Ballard City Manager Report Acting City Manager Norm Regis said they had a meeting with Senator Murkowski's staff earlier today about funding future opportunities. 44 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Calhoon asked about the Central Treasury Report that was included in the council packet.He asked for a glossary to explain the funds in more detail. He inquired about which funds were restricted or unrestricted.Regis said their accounting team could provide a presentation to council to better explain the reports. City Clerk Report City Clerk Kris Peck reported he had recently completed Professional Development 11 training in Tacoma, Washington. City Attorney Report—None Other Reports and Announcements Presentations —None PUBLIC HEARINGS Ordinances for Enactment Ordinance 2023-016, Amending Seward City Code Chapter 5.20 Improvement Districts. This ordinance was introduced on June 12, 2023 and is coming tonight for public hearing and enactment. Motion (DeMoss/Osenga) Enact Ordinance 2023-016 Assistant City Manager Stephen Sowell said this ordinance was a follow-up to the Developer Reimbursement Program and would give council a mechanism to contribute to private property owners as well. The next step would be to figure out how to fund this program. Notice of the public hearing being posted and published as required byla w was noted and the public hearing was opened. No one appeared and the public hearing was closed. Wells thanked administration for their effort and benefit to the community. Motion Passed Unanimous Ordinance 2023-017,Amending Seward City Code Chapter 2.15—Ordinances and Resolutions. This ordinance was introduced on June 12, 2023 and is coming tonight for public hearing and enactment. Motion (Osenga/DeMoss) Enact Ordinance 2023-017 Sowell said the absolute minimum time for reintroduction would be 90 days, but administration would support a longer wait time. It was draining on both the council and public to have the same legislation reintroduced multiple times. 45 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Notice of the public hearing being posted and published as required byla w was noted and the public hearing was opened. No one appeared and the public hearing was closed. Calhoon asked the city attorney if other communities had something similar in their code for comparison. City Attorney Sam Severin (telephonically)responded that Soldotna also had a 90- day wait time before legislation could come back to council. Barnwell clarified that council could always bring something back sooner than 90 days if needed. Wells asked how council would be made aware of legislation being attempted to be reintroduced. Sowell responded that administration would reach out to council and request direction. Motion Passed Unanimous UNFINISHED BUSINESS Sixth Avenue Public Works Facility Location Determination- Lot Size and Zoning Community Development Director Jason Bickling provided an overview of the four plat concepts in the council packet. Osenga asked how the sale process would be conducted. Sowell responded the lots would be sold with sealed bids. Finch asked if the sealed bids could be made for locals only. Severin responded he would look onto that stipulation further. Sowell responded the purchase agreement could include a reasonable time frame to develop a home. Finch had observed some vacant lots around Seward were only used as motorhome parking during summer and wanted to protect housing for locals. Severin said restrictions could be put in place to sell the lots in the direction that council wanted. Motion (DeMoss/McClure) Choose Plat#2 for the Conversion of the Public Works Facility Site to Residential Development Motion Passed Unanimous NEW BUSINESS Resolutions Resolution 2023-073, Approving The Lawful Action To Bring Suit Against A Non-Compliant Campground At 1823 Nash Road And Appropriating Funds In An Amount Not To Exceed$10,000 Motion (DeMoss/Osenga) Approve Resolution 2023-073 46 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Severin said there had been both informal and formal efforts to bring the campground into compliance. There was a formal agreement signed by the property owner to cease operations at the campground. However, the campground continued to operate without necessary permits. Wells asked the attorney if the campground was compliant with the Kenai Peninsula Borough tax division. Severin responded the campground was not in compliance with the borough. McClure suspended the rules to allow the campground owner Tim McDonald to speakfor 5minutes. There was no objection from council McDonald explained the complexities of his situation and he felt that his voice had not been heard. He said he was in the process of selling his business and this was his last year in business. Barnwell asked about the city reducing the fines and attempting to work with McDonald. McDonald said there were multiple fines including one fine for$10,000 that was reduced to$1,000. McDonald said he had a large stack of paperwork on the subject, and it was hard to keep track of exact fines. Wells thanked McDonald for being present to answer questions. He brought up the signed contract from August 2022 that stated McDonald would not operate without a valid license. McDonald said he mistakenly thought his $30 payment receipt was a city business license. Wells asked administration if they felt that McDonald honored the August 2022 contract. Sowell read the contract from Page 161 in the council packet. Sowell also noted the contract terms included McDonald obtaining a Campground Park Permit from the city. Severin said he had worked back and forth with McDonald's attorney, however it had not resulted in much progress. Severin mentioned the Campground Park Permit was also required as part of the Conditional Use Permit. DeMoss said she was ready to vote and move forward on the lawsuit. Motion Passed Unanimous Council recessed at meeting 8:46 p.m. Council resumed the meeting at 8:52 p.m. Other New Business Discuss Amending SCC 2.10.030(A)(2)regarding regular City Council meeting times to reflect a 6:00 p.m. start time McClure said the Borough Assembly and Soldotna City Council start at 6:00 p.m. and she was looking for feedback if this council wanted to switch to a 6:00 p.m. start time. 47 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Finch said he had received a lot of citizen feedback in favor of keeping the 7:00 p.m. start time. Osenga noted any special meetings or work sessions preceding the regular meeting would be reduced to an hour between the 5:00 p.m. to 6:00 p.m. timeframe. McClure asked if special meeting topics could simply be on the regular meeting agenda instead of holding a separate meeting. McClure noted she had also received many citizen comments opposed to the 6:00 p.m. start time. Review, discuss, and select members for the Ad Hoc Committee for reviewing the current status of the Seward Electric Utility There were three letters of interest received from citizens interested in joining the committee. Motion (McClure/DeMoss) Postpone to July 10, 2023 City Council Meeting with a Deadline of Wednesday, July 5, 2023 at Noon Motion Passed Unanimous Discuss current plans for Obihiro delegation exchange and determine budget and parameters for traveling. Obihiro Planning Committee members Robert Barnwell and Kat Sorensen reviewed the dates of the exchange and the progress that had been made. Sorensen noted the Obihiro delegation would be attending the August 28, 2023 council meeting and a proclamation would be a nice way to honor them. Wells blocked out the dates of his nightly lodging so he could cover the entire duration of the stay for the Obihiro citizens. Sorensen recommended that citizens would have to pay their own airfare to Obihiro as the cost was too much for the city to cover. The Seward citizens could still participate in the delegation including homestays in Obihiro. Finch questioned how the general population of Seward residents would benefit from this exchange and felt the money would be better spent on other projects. He also noted there was no interest in visiting Seward, Nebraska. Motion The City of Seward Would Pay for the Airfare For Only The Five Members From The City And The City Would Seek Applications For Up To Six Citizens To Join The Delegation to Obihiro, Japan. 48 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS A. Boards and Commissions Minutes 1. Planning& Zoning Commission a. January 10, 2023 P&Z Minutes b. February 7, 2023 P&Z Minutes C. April 4, 2023 P&Z Minutes 2. Port & Commerce Advisory Board a. March 8, 2023 PACAB Minutes b. March 22, 2023 PACAB Special Meeting Minutes C. April 5, 2023 PACAB Minutes 3. Historic Preservation Commission a. January 12, 2023 HP Minutes CITIZEN COMMENTS Kat Sorensen, inside city limits, thanked Obihiro, Japan for sending trophies for the Mt. Marathon Race and the Silver Salmon Derby. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Regis said he attended a memorial for Rubye Foldager Blake in Lowell Canyon and a maple tree was planted in her honor. There was also a beautiful plaque to go along with the tree. Sowell thanked the Police Department for their presence tonight during the council meeting. He thanked Officer Josh Ballard for his service with the Police Department. On another topic,there would be a R&M engineering presentation on the new Public Works Facility at the July 10, 2023 council meeting. Federal grant money could be used to extend the water and sewer utilities to the future residential lots at the current Public Works Facility. Finch thanked Officer Ballard and all of Seward Police Department for their professional work. He was glad Parks&Rec was increasing youth programs at AVTEC. He reminded everyone that freedom was not the right to do as we please, but to do what was right. Barnwell thanked Russ White for his commitment to the activities at AVTEC. He encouraged people to apply for the citizen delegation to travel to Obihiro, Japan in October. 49 City of Seward,Alaska City Council Meeting Minutes June 26, 2023 Volume 42,Pale Calhoon thanked Officer Ballard and all first responders who do a great job for the community. He wished everyone a safe 4th of July. Wells thanked the city for the opportunity to go to Obihiro, Japan. He encouraged local businesses to reach out and donate activities for the Japanese visitors in Seward. Wells appreciated Officer Ballard, the Seward Police Department and all first responders. He thanked Chamber of Commerce Director Kat Sorensen for her work planning the massive 4th of July Festival. DeMoss thanked the Seward Police and Officer Josh Ballard for all their hard work. The service they provided was always professional and much appreciated. Osenga thanked all first responders and Officer Ballard for their heroism on duty.He wished everyone a safe and fun 4th of July. McClure thanked the Seward Police Department for their service. McClure encouraged everyone to see the new Alfred Lowell Statue near the waterfront.McClure reminded everyone there was a special meeting on Wednesday, June 28, 2023 at 5:00 p.m. to interview city manager applicants. ADJOURNMENT The meeting was adjourned at 9:35 p.m. Kris Peck Sue McClure City Clerk Mayor (City Seal) 50 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale CALL TO ORDER The July 10, 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 A'�" Kevin Finch n ebei4 B -owel comprising a quorum of the Council; and Norm Regis, Acting City Manager Stephen Sowell, Assistant City Manager Kris Peck, City Clerk Jodi Kurtz, Deputy City Clerk Excused—Wells, Barnwell Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Kelli Hatfield, outside city limits,introduced herself as one of the applicants for the Seward Electric Utility Ad Hoc Committee. Karen Cooper Mclaughlin, inside city limits, thanked the community for their support of the 4th of July Festival. She thanked the city departments and other sponsors for their help with the festivities. Lastly, she also thanked the chamber staff and Mt. Marathon race committee. Randy Stauffer, outside city limits, introduced himself as one of the applicants for the Seward Electric Utility Ad Hoc Committee. Ristine Casagranda, inside city limits, introduced herself as one of the applicants for the Seward Electric Utility Ad Hoc Committee. Carol Griswold,inside city limits, asked council to remove Resolution 2023-078 from the consent agenda. She was concerned the flat rate salary for the week could be abused if the contractor only worked a few days or a few hours. Griswold was also concerned about the use of a city vehicle 51 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale being abused due to the vague terms in the contract. Next, Griswold asked council to remove Resolution 23-079 from the consent agenda. The 1950's landing craft in question was marooned far from the beach and would be too expensive to dispose of this vessel. Next, Griswold encouraged council to accept all 10 applicants to the to the Seward Electric Utility Ad Hoc Committee. Lastly, she thanked council for selecting Kat Sorensen as the next city manager. Bruce Jaffa, outside city limits, said he appreciated the selection of Kat Sorensen as the next city manager.He felt confident that Sorensen would win over her naysayers.Jaffa offered a word of support for some of the applicants for the Seward Electric Utility Ad Hoc Committee. Jaffa agreed with the previous citizen that Resolution 23-078 should be removed from the consent agenda. Kat Sorensen, inside city limits, spoke as the Chamber of Commerce Director and echoed previous comments from chamber staff. Sorensen recapped some of the Mt.Marathon race statistics and thanked the public works department and police department for towing vehicles out of the race course. Lynda Paquette, outside city limits, introduced herself as one of the applicants for the Seward Electric Utility Ad Hoc Committee. Becky Dunn, outside city limits,encouraged council to select all 10 applicants to the Seward Electric Utility Ad Hoc Committee. She thanked council for the inclusion of people outside city limits. On another topic, Dunn spoke in opposition to Resolution 23-078. She recalled a previous contract that was poorly written and was abused by the contracted employee.Dunn would like to see the j ob positions advertised for the electric department. Megs Testarmata, inside city limits, introduced herself as one of the applicants for the Seward Electric Utility Ad Hoc Committee. On another topic, she spoke in opposition to Resolution 23-078. Jim McCracken, outside city limits, introduced himself as an applicant for the Seward Electric Utility Ad Hoc Committee. He asked for more information on a timeline and scope of the proj ect. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Approval of Agenda and Consent Agenda DeMoss pulled Resolution 23-078 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the June 12, 2023 City Council Special Meeting Minutes Approval of the June 28, 2023 City Council Special Meeting Minutes 52 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Resolution 2023-075, Authorizing the City Manager To Enter A Contract With METCO Alaska, LLC For The Installation Of Water And Sewer Infrastructure, And Appropriating Funds Resolution 2023-076,Authorizing the City Manager to Execute R&M Engineering Task Order No. 2734.25.03, Completing the 65%Design of A New Public Works Facility,and Appropriating Funds Resolution 2023-077,Authorizing The City Manager To Enter Into A Contract With Electric Power Systems,Inc. (EPS)To Provide Engineering Design Services For The Refurbishment And Voltage Capacity Upgrade Of The Lawing Substation At Milepost 25 Of The Seward Highway In A Not-To- Exceed Amount Of$175,972 Resolution 2023-079, Approving the Lawful Action to Bring Suit Against the Owner of an Abandoned or Derelict Vessel on City Tidelands and Appropriating Funds in an Amount Not to Exceed $10,000 Non-objection to the renewal of liquor license #1153 Tony's Bar, Beverage Dispensary and non- objection to renewal of liquor license#1154 Tony's Liquor Store, Package Store Non-objection to the renewal of liquor license#5965—Primrose Provisions,Restaurant/Eating Place Non-objection to the renewal of liquor license #4334 —Oaken Keg, Package Store SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards—None City Manager Report Acting City Manager Norm Regis thanked everyone for their help with the 4th of July festival. Calhoon asked for clarification on some legislative priorities and requested a work session on water and sewer infrastructure. Sowell responded that was a big topic and a work session could be scheduled. City Clerk Report City Clerk Kris Peck introduced Jodi Kurtz as the new Deputy City Clerk. City Attorney Report City Attorney Sam Severin (telephonically) said there has been some code enforcement lawsuits lately included campgrounds and short-term rentals. Finch asked if it would be possible to recover all legal fees rather than only partial fees. Severin responded that recouping 20% of legal fees was standard by court rule. 53 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Other Reports and Announcements Presentations —R&M Engineering Public Works Facility Project 65%Design PUBLIC HEARINGS Ordinances for Enactment Ordinance 2023-018, Approving the Land Use Amendment to Rezone a Portion of Proposed Tract 5A,Dairy Hill Subdivision Addition No. 1,from Single-Family Residential(R1)Zoning District to Resource Management(RM)Zoning District Motion (Osenga/DeMoss) Enact Ordinance 2023-018 Community Development Director Jason Bickling summarized the rezone from the council packet. He noted that Planning& Zoning Commission approved this rezone in Resolution 2023-012 on May 9, 2023. Notice of the public hearing being posted and published as required byla w was noted and the public hearing was opened No one appeared and the public hearing was closed. Motion Passed Unanimous Ordinance 2023-019, Amending Seward City Code; 15.10.140(b) Definitions, Pertaining to Bunkhouse,Lot, and Long-term Rental; 15.10.222 Development Requirements Table,Updating the Minimum Buildable Lot Size for single-and Two-Family Residential Zoning Districts,and Adding Table Notes for Lot Frontage; and 15.10.226 Land Uses Allowed Table,Adding Long-term Rental, and Changing the Outright Use of Dormitories in the Office Residential and Institutional Zoning District to Require Conditional Use Permits Motion (DeMoss/Osenga) Enact Ordinance 2023-019 Bickling said there had been a lot of work done to clean up the definitions pertaining the bunkhouses and long-term rentals. He also noted that Conditional Use Permits would be required more consistently across all types of bunk houses and dormitories. Notice of the public hearing being posted and published as required bylaw was noted and the public hearing was opened. No one appeared and the public hearing was closed. Calhoon appreciated the work that P&Z and Community Development had done to bring these ordinances up to date. Motion Passed Unanimous 54 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Resolutions Requiring Public Hearing Resolution 2023-074, Approving Lease Amendment 1 to the Amended and Restated Lease Agreement between OBI Seafoods,LLC as assignee of Icicle Seafoods,Inc. and the City of Seward Motion (DeMoss/Calhoon) Approve Resolutions 2023-074 Regis said there had been an environmental spill and the city had worked with the attorneys to come to an agreement. Notice of the public hearing being posted and published as required byla w was noted and the public hearing was opened. No one appeared and the public hearing was closed. Motion Passed Unanimous UNFINISHED BUSINESS Ordinance 2023-015, An Ordinance Of The City Council Of The City Of Seward, Alaska, Amending Seward City Code Title 6—Purchasing, Contracts And Professional Services For The City Of Seward Recodification Proj ect. This ordinance had a public hearing on June 12, 2023, and was postponed to July 10, 2023. Regis requested to postpone Ordinance 2023-015 to the July 24, 2023 council meeting. Motion (McClure/DeMoss) Postpone Ordinance 2023-015 until July 24, 2023 Motion Passed Unanimous Resolution 2023-046, Authorizing the City Manager to Enter into a Recruitment Services Contract with GovHR, and Appropriating Funds. This resolution was postponed from April 24, 2023, until June 12, 2023. This resolution was postponed from June 12, 2023, until July 10, 2023. Regis requested resolution this to be failed due to Kat Sorensen being hired as the next city manager. Motion Failed Unanimous Finish discussion and select members for the Ad Hoc Committee for reviewing the current status of the Seward Electric Utility. This item was postponed from June 24, 2023,and the application period was extended until July 5, 2023 at noon. Discuss and select four applicants for the inside city limits positions. Discuss and select three applicants for the outside city limits with the service area positions. 55 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Motion (McClure/DeMoss) Include all 10 applicants to the Seward Electric Utility Ad Hoc Committee DeMoss agreed she would like to appoint all 10 applicants. Finch wondered if having an even number of members would be an issue. Motion Passed Yes: Finch, DeMoss, Osenga, McClure No: Calhoon McClure said their first meeting would be held on Monday, July 17, 2023 at 7:00 p.m. in council chambers. The committee would select their own chair and vice chair at that meeting. Finch felt they should meet every two weeks. Electric Department Manager Rob Montgomery wanted the committee to hear from experts around the state including a rates consultant. Regis suggested the committee could provide a presentation to council at regular meetings. Calhoon wanted to emphasize the mission of the committee was not to debate the pros and cons of selling the electric utility. NEW BUSINESS Resolutions Resolution 2023-078, Authorizing The City Manager To Enter An Independent Contractor Agreement With Rob Montgomery And Appropriating Funds Motion (Osenga/DeMoss) Approve Resolution 2023-078 Regis said the position was currently being advertised in-house before it went out to the public. He noted that Rob Montgomery was available tonight to discuss the contract. DeMoss said she had received a lot of citizen feedback about this Resolution 2023-078. Montgomery confirmed his last day with the city would be August 2, 2023 and it could be difficult to get his position filled.He offered this consulting contract to cover the gap until someone was hired. He based this contract on the amount that he was offered from other employment. Finch asked for clarification on how many hours per week were in the contract.Montgomery said he would work 40 hours a week. He also said there was no problem using his own personal vehicle as opposed to a city vehicle. 56 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Council directed administration and the city attorney to specify in the contract the workweek would be 40 hours per week. Council directed administration and the city attorney to remove the use of a city vehicle in the contract. Motion Passed Unanimous Other New Business INFORMATIONAL ITEMS AND REPORTS A. Boards and Commissions Minutes 1. Planning& Zoning Commission -May 9, 2023 Minutes CITIZEN COMMENTS Bruce Jaffa, outside city limits,applauded council's changes to the contractin Resolution 23- 078. One another topic, Jaffa announced that he had renewed his application for the Port and Commerce Advisory Board. However, he also hoped new people would step up and join PACAB. On a side note, Jaffa reminded council that the Seward Airport Ad Hoc Committee also had 10 members. Lynda Paquette, outside city limits, said she was previously on the Seward Airport Ad Hoc Committee which also had 10 members. The advantage to a larger committee was extra coverage incase other members couldn't make it to the meeting. Paquette asked council for more guidelines and deadlines for the Seward Electric Utility Ad Hoc Committee. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Regis thanked everyone for applying to be on the Seward Electric Utility Ad Hoc Committee. He noted the 4th of July Festival went very smoothly and he thanked everyone for their help and teamwork. Sowell thanked council for their approval of the 65% public works facility resolution. He would work with the clerk's office to schedule a work session for water and sewer infrastructure. Sowell thanked Calhoon for bringing up the legislative priorities. DeMoss thanked all the applicants for the Seward Electric Utility Ad Hoc Committee. She reminded everyone there were two vacant seats on P&Z and two vacant seats on PACAB. Finch thanked P&Z and Community Development for all their hard work on the ordinances. He thanked Mongomery for sticking with the city as a consultant. 57 City of Seward,Alaska City Council Meeting Minutes July 10, 2023 Volume 42, Pale Calhoon asked for a project fund to be included in the CMR. He was glad to see everyone had fun during the 41h of July Festival despite the rainy weather. Calhoon announced the US Coast Guard Icebreaker Healy would be in Seward later this month. Osenga thanked everyone for a successful 4ch of July Festival.He welcomed Jodi Kurtz to the city clerk's office.He thanked Jaffa for his service on PACAB and all the volunteers who applied for the Seward Electric Utility Ad Hoc Committee. McClure thanked everyone for the great 41h of July weekend. She recalled running the Mt. Marathon race in 1978 and it was still snowing on the mountain. One of the perks of being mayor was to fire the starting gun for the Mt.Marathon Women's Race.McClure said the fireworks display was outstanding this year. Calhoon also reminded everyone there were two vacant seats for city council coming up in October. ADJOURNMENT The meeting was adjourned at 8:38 p.m. Kris Peck Sue McClure City Clerk Mayor (City Seal) 58 Resolution 2023-082: Authorizing the City Manager to purchase from Belyea Company a 1,200-amp circuit breaker for installation in the Spring Creek Substation in a not-to- exceed amount of $101,041, And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-082 • Attachments: o Circuit Breaker Estimate from Belyea Company 59 City Council Agenda Statement Meeting Date: July 24, 2023 I l( To: City Council Through: Norm Regis, Interim City Manager From: Rob Montgomery, General Manager-Electric Agenda Item: Resolution 2023-082: Repealing Resolution 2023-025 And Authorizing The City Manager To Purchase From Belyea Company One 1,200 Amp Siemens Circuit Breaker For Installation In The Spring Creek Substation In A Not-To-Exceed Amount Of$101,041,And Appropriating Funds Background and justification: In 2022, Seward's Electric Department received approval from City Council to rebuild key parts of its transmission system and refurbish/rebuild its electric substations. Construction activities for these key projects, which will replace aging infrastructure and upgrade the system's voltage capacity from 69kV to 115kV,began earlier this year and will continue through the next 2-4 years. Part of the work includes the refurbishment of substations and the equipment inside the substations. This 1,200-amp circuit breaker is a safety device to protect equipment and reduce the risk of fire by automatically interrupting the flow of electric current to when system issues are detected. The vendor for the project, Belyea Company, was selected after a Request for Proposal was conducted by construction consulting firm, Electric Power Constructors. The company initially selected to provide the circuit breaker and approved by Council Resolution 2023-025 is no longer able to fulfill the order. Belyea Company offered the next lowest bid and meets the operational specifications for the breaker. The circuit breaker will be installed in the Spring Creek Substation near the Seward Marine Industrial Center later this year. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 3.7.1.4"Continue to upgrade and expand utilities to meet existing needs and encourage future development.' Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: S 101,041 This legislation(✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $101,041 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15351-0000-8103 Not budgeted Not applicable 60 Finance Director Signature: `45� ` Note:amounts are unaudited Available Fund Balance/Net Position $ 1,608,621.47 Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation Approve Res.q Other: 61 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-082 A Resolution Of The City Council Of The City Of Seward, Alaska, Repealing Resolution 2023-025 And Authorizing The City Manager To Purchase From Belyea Company One 1,200 Amp Siemens Circuit Breaker For Installation In The Spring Creek Substation In A Not-To-Exceed Amount Of$101,041, And Appropriating Funds WHEREAS, Electric Department engineering consultant, Electric Power Consultants, completed a Request for Proposals in which multiple vendors responded; and WHEREAS, the original vendor selected and approved by Council Resolution 2023-025 was unable to meet fulfillment obligations; and WHEREAS, Electric Power Consultants then moved—at the request of the Seward Electric Department--to the next lowest bidder, Belyea Company; and WHEREAS, the circuit breaker produced by Belyea Company is able to meet all operational specifications WHEREAS, the circuit breaker is an electrical safety device designed to interrupt current flow to protect workers and equipment, and reduce the risk of fire; and WHEREAS, the installation of the circuit breaker is a part of the larger transmission infrastructure project that is currently underway. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is hereby authorized to purchase from Belyea Company a 1,200-amp gas circuit breaker for installation in the Spring Creek Substation. Section 2.Funding in the not-to-exceed amount of$101,141.00,including a packaging and shipping fee, is hereby appropriated from the System Infrastructure Project budget via the approved Revenue Bond from Electric reserves account no. 15351- 0000- 8103. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July, 2023. 62 CITY OF SEWARD,ALASKA RESOLUTION 2023-082 THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 63 2200 Northwood Ave. WJA ff ffA F-M A Easton, PA 18045 Tel :610-515-8775 COMPANY Email : sales@belyeapower.com ELECTRICAL POWER SYSTEMS Web :www.belyeapower.corn Proposal Company: City of Seward Date: 6/22/2023 Prepared for: Robert Montgomery Telephone: 907-224-4071 ES-0262 REV 1 E-mail: rmontgomery@cityofseward.com QTY DESCRIPTION PRICE(USD) 1 BELYEA STOCK#: CB-19534 BELYEA ID#: 44665 ONE(1) 1200 AMP SIEMENS SF6 CIRCUIT BREAKER TYPE SPS2-123-40-2 123 KV 550 KV BIL 60 HERTZ 1.0 RATED VOLTAGE RANGE FACTOR K 3 CYCLE INTERRUPT 40 KA SHORT CIRCUIT 125 VDC CLOSE &TRIP 240 VAC MOTOR FA220 MECHANISM 7,800 LBS. TOTAL WEIGHT 58 LBS.SF6 GAS WEIGHT 87 PSIG OPERATING PRESSURE 72 ALARM GAS PRESSURE 75 PSIG MINIMUM OPERATING PRESSURE 12 X 2000:5 MRCT C800 95 OPERATIONS SIN 30086762-1 INSTRUCTION BOOK PEB-3668-03 $100,000.00 CONTROL DIAGRAM 72-481-015-447 5% Dealer Discount -$5,000.00 Export Crating Standard Export Box + Shipping $3,445,00 SF6 Gas 99.999% Sulfur Hexafluoride Gas + Cylirder(70 lb. fill) + Shipping $2,596.61 Accessory Option Supply & Install Heater Blanket Assembly $14.000.00 Total $101,041.00 Unit sold reconditioned, tested, and guaranteed. Warranty: One (1)year warranty. '"See terms and conditions. Standard Lead Time: 2200 Northwood Ave. F7 Easton, PA 18045 Tel :614-515-8775 COMPANY Email : sales@belyeapower.com ELECTRICAL POWER SYSTEMS Web :www.belyeapower.com Ready to ship in 14-16 weeks Shipping Terms: - Prepay &Add or Customer Arrangements Terms of Payment: 25% Due w/PO &75% Due NET 30 Days From Shipping Cancellation: - If the purchase is cancelled after PO is issued but before equipment ships, the cancellation fee will be 35%of the purchase price plus the cost of any nonstandard customization worklmaterials if applicable. - If the purchase is cancelled after equipment ships but before it is unloaded at customer's site, the cancellation fee shall be the 75% of the purchase price plus the cost of any nonstandard customization work/materials if applicable. Customer pays all shipping charges - If cancelled after equipment is unloaded at customer's site, the cancellation fee shall be 100%of the purchase price. Customer pays all shipping charges. TERMS AND CONDITIONS OF SALE • • • rr Web r r • • 2200 Northwood Ave. Easton, PA 18045 rm Tel :610-515-8775 COMPA NY Email : sales@belyeapower.com E LECTRICA L POWER SYSTEMS Web:www.belyeapower.com ACCEPTANCE of This Order is expressly conditioned on Buyers agreement if any products covered by this contract fail to meet the foregoing wananties. that, the terms and onditions set forth herein, together with any plans or (except title), the Buyer's exclusive remedies shall be for the BELL 1: specifications appr(m ed in writing by BELi FA COMPANY INC.,are the sole COMPANY INC' r, r Ct u 1 i .ah,-r,(at the option of the terms and conditions of this Clydcr and CUII, iIA C a contract representing the BELYL\ CONI1 1',t •t -I I LN I'ECTIVE I'AR f5 OR inure tlLrcnncnt of the partte, a nth re�pcct to the ,object natter hereof.No RIJ,\IP ING AN 1 I I 1< OF THE PROD1,TJ 1�.(}.li. nncurhmnt,nior9ifiiatirei..nr+c.Iivrr of tlIC IC1`1111,Ind urnditions oftltis Order SCIIL:S lrlantorr r.1,, irn +fgltil:r, I[ 1 all of replacenientis wrfeasihle III it be hill riing on 131 1 l 1::A t (IN111 V',1 IN( ,unless made in writing anti and I Lhc Cirrlln', !'1 :hrC puIItw h„_ f, atislactory adjustment. c,iLued b.\ an auth()Tvetl rc r of LiI:Li t 1 C UNiPAN't INC. Any L!hun of [III %,�tranty II ,II of the I31-1 ',F,A, ,I(Ioltioll;d rrdilicr,•nt tenn%tlnd 10TILlix1::I], :oruu1ivd in the I3uccr s Purchase C'(7MP ANl 1�,( lit it,product shallterm,i),tc. ii1 1 1 1 :1C(ry1P 1 1 INC`, rders Or 'ewprmses I,t t1H_ he deemed objected to by BELYEA liability under t111,pn,vi,itm shall in 1" I i1,,:L tatal contact price, I�VIPA'NY IN(..,�'11 th lli odCfiirrjher noticeofohjections and shall not includinL thc,upplying of any neCC `. ,pi , racer,and SI I:AL.L IN NO bC cfl dive or bindin_tnllcss a sent<d to in ++mina Si_med by an authorized E\'LN,I INCLUDE SPECIAL, INDlltl:( i i IR f ()NSLQI:1 N I IAI_ cnrdscntative0'I3111I \ 0)\IIIA'v\ 1':( Bmerw ill hedeemedt0have DAV \(iIS. THE BELYEA C(_i\tP_\N'i 1\( PlI,(I \IN1S 1N\' a;,ented It,all the t.eniis and COTIJI(1011s�nnlain:d 1ICrCln upon par IIM_Mancc Or WA11 R:A_N It OF MERCHANT,\R I I i I r il' FII:NI,55 H W I art perti WTI nmcc 11y1 II I l L:1 t,(1\�IP;AA1 INC. under dll� Lnntrae. In the P:AIt i iC C I_Al{I SE WiTI I RESPL( I I l r I III I'blt):)I ( I'5 M 1\(I SC)l 11 ccenL any terms or aaiditioIlS In Ilny uauraCt Or purchase order use(l by Buyer PLRSLAN I I{r I I IS t�ON I R,AC I. I i ILRI ,%!iL NO N\rARRAN I I1:5 ihl)er,the terns and conditions herein shall prevail. WHICH EN Il ';U 1,, .POND THE DESCRIPTION ON THE FACE OF THiS CONI F:A(i_ I L RMS OF PAYMENT:One hundred percent(100%)due net-30 d:ays from 1TLMS S(tLL) \S 15 Occasionally BELYEA COMPANY INC. offers MOT I)CLLU011 of equipniend's ready to ship status.no discount alien,eel ,1 foi >al,ccrui❑usc(f Or repaired items on as-AS IS"basis Items s0 labeled scrtiicc Jum-'e ofomc Ilnri irnc h tl1 percu I I 1 ,°1,)par nI01IIIt on unhtr.d are+nl(I ,AS IS sith all laulu and RI:I.)E�C 11'.AA'1"INC DOLS NOI }.danccsaftcrthil[n Bull d,r+ Ili hcic�,cd It'I aIA ,linanciai condition at W\RRAAI III,AI VN1 1,I'CII III AIti,AI<[ %11 R(. EI•AN'I ABLE OR an+ time(ioeS not 1w(I lj 'ont fit uanCc r,f lhr work to ix,per(mined by I'll I t)R \iv\ PAR I I(LILAR M IRPOSL. 1 is f3ui Cr acknrn+ledges that it I>LLYIi.-A c ONIP ANY IM hercluidcr r,ri the aL,reedtennis ofpayment, is pacinLL,,a lowerprice tOr the items than the ncvtnul marrlcct price and that R1 1.1 F_\COMPANY IN( may Iequil C Dull payment in advance.In the the dischaimcr is part ofthe basis ofthe bargain. 't ent of iltn cr,,i):rnkil:pwv or ins+?h-enc.% or in the event any proceeding is NOUL111 aUainSl the 13uver. \alunt,MI%o-r in fo voluntarily,under the Bankruptcy DELAYS:The BELYEA COMPANY INC.will not he hable r any Orar1} ins�tl�cnn�'Ia�+S, 131.i11-ACCINIPIN'1 f`:('.shall be entitled to delays in the performance ofthis contract ofanydaiva—,°�.;udlbrcdbythe cancel array order I1IC11 aut,ctanrlrnp&1 aura time during IIIC pcnod a11o+.'-',1 101' Buyer,Reasons for Said delay,when the delay is directly cr indirCCtla ause lil utd claims Igainst Lhc canal of huger and Shall recoiv e i'eintburs,,in.nt for by or in any manner.arises-from lines,floods.accidents,riots.Ilct>rr1 C""i. id11)ropeIiITIS:cll;Iurnr Ri1.YI-AC( IP.-1NYI"C '�rr_ ,underthis war. LCI4Cm III C,ualnnerferenCCurCmbargoes.suikes.]ahordillicuILics_ }ro+isiort acre in ad(hilon td)any uthCr t ILhL,,IVIHI blc to It A; IiM m equity. shortage 01 labor,fuel,Iwwer,nr,tICI HiI� 0r Supplies.tIJTICI3011alinn dekrv>. All r.rp rc,ultin,tr0oi llic shall be due p apart+A'lht I_;l ' `,LA orother causes ofcauses(wheth,:i OF not iat nEuurr[0 tllw. 14111,1,c C 1)NIF V%: IN( , the title amI L11e riR•hL •rf posScsaioll Of tht cy!:ir,inCnt herein above specified)are beyond its control. tCpattrcci rr modified hereundCi •:h;tll r;.�r,u: tnth the• BIT.%01u.bic;I tt, ar-y appiicahlc hen rights ofthe BFl_`',i A( t \I ,'�;'t 1',,( .iiidl { is,i. IT i:r the DEIAV"ERiFI:l!nlcss othelwiyc spccilic(l by lhC 131 1.YEA COMPANY rent nl' �nnpavment. financr ,)ndiliCif Cl Bkiyer, rind uie msol+eticy as In'<' raehvsr ++gill be made and ulk p1,<,_r.]F 1),Lt.Irmo of shipment to ,2d III th+ p=.Cd.duu ah. Buyer.Risks ofloss ordamage pass to l 3uyci )it dcln v».If products are to �l S: 'hc price qunlr+l r, fill,conun ny ct does not includC a taxes and in be tlJitered by the BEC_I'FA CO\if.ANT I've_Such products areto be _P -cent tasr_,01'am 11, ..,ssad 01C% Ili " ;,da,`ci :, the price rucei+Cll;IoJ unloaded b\ Ll,v, it a Buiei S CNpeij'c and risk. I1,.1,111 ijnlc55 liko,"I 1:.iV rt,lJ, nonsu'ates such exemption to th _.LisPiCrinru or dic Ll-'i 1 +t O\i1!A:,) Ir•,C'. GOVERNING LAW:The laws ofthe Commonwealth of Pennsylvania shall govern the validity,pCrhtnnance,interpretation,and the effect ofthis WARRANTIES:The BELYEA COMPANY INC w;nrants t0 Ruverthat agreement. p:uducLs fumished pursuant to this conu.r:t,,i;�1), 111.,:]1 n d,!,.-!, in ntatcrinl.,NoiknT;mslnp,andT.ilk lwdNtiilII ,,ld :l ,d;rlr gwjl,!) ,pceified AMENDMENTS: IhiScnnu�ct may not be modified orTItided inany inI31:1 \ F\COALI AN1' IN(' "OlJOIS;)r1 Ib_[„•,;many I llonlyapplyif manner(zcepLh� thewnuCn agreement ofboth Buyer and the BELYEA Lhc item.purelrlsed pLusu,tnt tC this Conua,t am L '+ 11a ever in COMPANY INC. acvol lance with Commonly accepted industn In;i.I u('lina but not linliLecl10.nrntecling the items by property coordina:�,l,.rIt,r,-C:,on ,C- CAN;("T-1.1.AT1O\. uppresti i,c current overload and fault current pro ,J: r do ir::_., the l f r n,_ti,,'chase is;.:urcelled after PO is issued but before equipment ships,the hineLoin_*warranties ICxcludim*the warn 1nt, .V';iil— in`I;ctn-.rnate one(1) can:cll ti i:, '.cc .,II be 35% of the purcharc piiee plus the cost of any n r allcr die.late ,f hipmtm c+r_whcti,Itrhn C,. I ,:,;,i s n,:n.r(. <i,, 1 u:�tuntization work'niateraals itapplicable. reyucsl•One(I)ycar:iliar dtr date the items or itc .ti•., ,1,1,„rC .r., _:urCCi of If;lh, Ships bunt it is unloaded at customer's LhiS+omact are prepal,d li 1 InpmL!ia(. sit; Ll. .;nrceli'anon lee Shall he i.11c r�";h ol'thr{nuC'hase price plus the cost+:,' an. rx n.r..uulurd custn3niz:16rul nralelial_,;tlyi111icable.(I,Jomcr pain,all hi1,m, clrarveS If the caLic'dld,ttlCr c,Iuipn C r ;onloudetl m cusion?et', side ::tu'llation fee shall be 100%of the purchase plicc.Customer pays all S111p'i'1!1^Charges. TERMS AND CONDITIONS OF SALE (CONT. BELOW) . . 2200 Northwood.Ave. Easton, PA 18045 Tel:610-515-8775 �64 PA1�fY Email :sales@belyeapower.com ELECTRICAL POWER SYSTEMS Web:www.belyeapower.co:,n IN WITNESS WHEREOF, the duty authorized representatives of the Parties have executed tlus Agreement, to be effective as of the Effective Date: Selling Party Buying Party Belyea Company Inc, 2200 Northwood.Aveiaite Easton, PA 18045 Nance&Title: Dameoi-,Kince E ui), Sales Mgr, Name&Title; Signatur : 1 Signature: I 67 Resolution 2023-083 Adopting Personnel Policy #2023-06: Children in the Workplace Policy Documents: • Agenda Statement • Resolution 2023-083 • Children in the Workplace Policy 68 City Council Agenda Statement Meeting Date: June 26, 2023 To: City Council Through: Norm Regis, Acting City Manager From: Tammy Nickell, Human Resources Manager Subject: Resolution 2023-083: Adopting Personnel Policy #2023-06: Children in the Workplace Background and justification: Seward City Code 3.05.015 A. 2. States the city council shall adopt all personnel policies. The city manager requests the city council to adopt Personnel Policy #2023-06. Personnel Policy #2023-05 provides the parameters concerning children in the workplace. The policy is applicable to all employees. 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 Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Note: amounts are unaudited 69 Available Fund Balance $ N/A Finance Director Signature: No fiscal impact Attorney Review xeYes Attorney Signature: Not applicable Comments: Administration Recommendation xeApprove Res. Other: 70 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-083 A Resolution Of The City Council Of The City Of Seward,Alaska,Adopting Personnel Policy #2023-06: Children In The Workplace WHEREAS, Seward City Code 3.05.015 A.2. states the city council shall adopt all personnel policies; and WHEREAS, the city manager request the city council to adopt Personnel Policy #2023- 06; and WHEREAS, Personnel Policy #2023-06 provide parameters concerning children in the workplace; and WHEREAS, the policy is applicable to all employees. NOW, THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council adopts Personnel Policy #2023-06 in its entirety. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th day of June, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: 71 City of Seward Children in the Workplace Policy Approved by City Council Resolution 2023-083 July 17, 2023 Policy #2023-06 Applicable to All Employees Children in the Workplace Policy For the purposes of this policy, children are defined as anyone under 18 or unable to care for themselves. Workplace is defined as any city office, vehicle, building or worksite. A. As employees' children are not covered by the city's insurance policy for accidents or injuries they may sustain, children are not allowed in the workplace. Employees who need to attend to childcare or bring a child to the workplace should expect to take personal leave. B. With permission from a supervisor or department head as to each occasion, an employee who needs to attend to childcare can occasionally work from home if this can be accomplished with no loss of productivity. C. Supervisors are responsible for ensuring this policy is enforced. Nothing in this policy precludes an employee from taking an authorized break to visit with their child or other family member who stop by for a brief visit. Policy #2023-06 July 17, 2023 Page 1 of 1 72 Resolution 2023-084: Authorizing The Matching Funds In The Amount Of $15,424 Towards The City's Share Of Funding For The Scheffler Creek Flood Mitigation Project, And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-084 • AWR Fee Proposal • Scheffler Creek Project Quote • COS Resolution 2020-009 • Return of Funds 73 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Resolution 2023-084: Authorizing The Matching Funds In The Amount Of $15,424 Towards The City's Share Of Funding For The Scheffler Creek Flood Mitigation Project,And Appropriating Funds Background and justification: At the request of the Kenai Peninsula Borough; AWR Engineering recently completed work on a project to analyze and map flooding along the Japanese Creek alluvial fan. Because Japanese Creek and Scheffler Creek both impact flooding in the Forest Acres subdivision, Scheffler Creek was also analyzed and associated flood extents were mapped as apart of that project. After presenting the project results to the Seward-Bear Creek Flood Service Area (SBCFSA)Board, the Board thought it would be helpful to analyze options to potentially mitigate flooding caused by Scheffler Creek. AWR Engineering will develop and analyze four scenarios to potentially improve flooding in the Forest Acres Subdivision from Scheffler Creek. These scenarios are described below and are based on a combination of feedback from the Board and analysis of the previously completed flood extents and area hydraulics. 1. Upstream Improvements: This alternative will improve the channel capacity in the upstream area of Scheffler Creek by raising the elevation of Barwell Street and adding an embankment to the west of Barwell Street, as well as possibly increasing the size of the culverts along Barwell Street and Phoenix Road. 2. Downstream Improvements: This alternative will improve the downstream flood extents by raising the elevation of Dairy Hill Lane and increasing the size of the current culverts conveying the creek into the lagoon. 3. Phoenix Road Improvements: This alternative will improve conveyance of flood waters across Phoenix Road to the downstream lagoon by adding cross culverts and improving the drainage ditches along Phoenix Road. 4. Combination Improvements: A final alternative will be developed that will combine some or all components of the first three alternatives to maximize the flood mitigation. The total project cost is $30,848 and the Kenai Peninsula Borough is requesting the City of Seward contribute half of the total project cost. 74 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 2.2.9 Public Safety: Support Seward/Bear Creek Flood Service Area Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: S 15,424 This legislation(✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 15,424 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 8100-0000-7010 Engineering Expense Account. Not budgeted Not applicable Fund Balance Information Affected Fund(✓): General SMIC Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool x Other Capital Acquisition Note:amounts are unaudited Available Fund Balance $ 216,423 Finance Director Signature: [, 7 Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation Approve Res.q Other: 75 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-084 A Resolution of the City Council of the City of Seward, Alaska, Authorizing The Matching Funds In The Amount Of $15,424 Towards The City's Share Of Funding For The Scheffler Creek Flood Mitigation Project, And Appropriating Funds WHEREAS, The Seward Bear Creek Flood Service Area is considering the opportunity to evaluate Scheffler Creek; and WHEREAS, The Flood Board met on July 10 and determined that it is the Seward Community interest to proceed with a project to conduct mitigation investigative measures at Scheffler Creek; and WHEREAS,the proposed project will develop and analyze four possible scenarios to potentially improve flooding in the Forest Acres Subdivision; and WHEREAS, the project will improve understanding of the hydraulics of the creek, evaluate existing mitigation measures, modify current LiDAR data, and provide a summary of recommendations; and WHEREAS, the City of Seward will be receiving $56,310.58 back from project savings on the USACE feasibility study for the Japanese Creek project; and WHEREAS, the total project cost is $30,848 and the Kenai Peninsula Borough is requesting the City of Seward contribute half of the total project cost. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes a City matching contribution of$15,424 towards the Scheffler Creek Flood Mitigation Project. Section 2. Funding in the amount of $15,424 is hereby appropriated from the Capital Acquisition Fund 80010-0000-7010 Engineering Expense Account. Section 3. This resolution shall take effect upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July, 2023. 76 CITY OF SEWARD,ALASKA RESOLUTION 2023-084 THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 77 Water Resources y Engineering Analysis Design ENGI E June 9, 2023 The Kenai Peninsula Borough Seward-Bear Creek Flood Service Area 144 North Binkley Street Soldotna,Alaska 99669 Subject: Fee Proposal for Flood Mitigation Alternatives on Scheffler Creek Dear Kenai Peninsula Borough: AWR Engineering (AWR) is pleased to provide this fee proposal for analysis of flood mitigation alternatives on Scheffler Creek. Scheffler Creek is located south of the Forest Acres subdivision and impacts the flood extents in the neighborhood. Background AWR recently completed work on a project to analyze and map flooding along the Japanese Creek alluvial fan. Because Japanese Creek and Scheffler Creek both impact flooding in the Forest Acres subdivision, Scheffler Creek was also analyzed and associated flood extents were mapped as a part of that project. After presenting the project results to the Seward-Bear Creek Flood Service Area (SBCFSA) Board, the Board thought it would be helpful to analyze options to potentially mitigate flooding caused by Scheffler Creek. As such, AWR is providing this fee proposal for development and analysis of flood mitigation alternatives. This fee proposal outlines our proposed scope of work, proposed schedule, and proposed fee. Scope of Work AWR will develop and analyze four scenarios to potentially improve flooding in the Forest Acres Subdivision from Scheffler Creek. These scenarios are described below and are based on a combination of feedback from the Board and analysis of the previously completed flood extents and area hydraulics. 1. Upstream Improvements: This alternative will improve the channel capacity in the upstream area of Scheffler Creek by raising the elevation of Barwell Street and adding an embankment to the west of Barwell Street, as well as possibly increasing the size of the culverts along Barwell Street and Phoenix Road. 2. Downstream Improvements: This alternative will improve the downstream flood extents by raising the elevation of Dairy Hill Lane and increasing the size of the current culverts conveying the creek into the lagoon. 3. Phoenix Road Improvements:This alternative will improve conveyance of flood waters across Phoenix Road to the downstream lagoon by adding cross culverts and improving the drainage ditches along Phoenix Road. 4. Combination Improvements:A final alternative will be developed that will combine some or all components of the first three alternatives to maximize the flood mitigation. 4011 Arctic Boulevard, Suite 106 Anchorage, AK 99503 (907) 441-AWRE (2973) www.awr-eng.com 78 June 9, 2023 Fee Proposal for Flood Mitigation Alternatives on Scheffler Creek Page 2 of 3 1. Site Visit. AWR will begin by conducting a site visit to take measurements of existing culverts and make observations regarding existing infrastructure and drainage patterns. The site visit that AWR performed in support of the Japanese Creek project was done in the winter with substantial snow cover present, which limited the opportunity for visual observations and measurements. 2. Update Existing Conditions Model.AWR will update the previously completed hydraulic model of Scheffler Creek with the data obtained from the field visit. We will also simplify the model to only include Scheffler Creek and its surrounding area,as our previous work showed that the Japanese Creek flood waters do not converge with Scheffler Creek, even under extreme storm scenarios. Simplifying the model will reduce model run times and allow for more efficient development of flood mitigation scenarios. 3.Terrain Modifications.AWR will develop a simple representation of each flood mitigation alternative and develop associated terrain files to reflect the scenario geometry. These terrain modifications are expected to include (1) raising Barwell Street and adding an embankment to the west of Barwell Street, (2) raising Dairy Hill Lane, and (3) improving the drainage ditch along the north side of Phoenix Road.These terrain changes will be done by modifying the current LiDAR data using Autodesk Civil 3D software.AWR will generate new terrain surfaces which will be used to develop additional proposed conditions models. 4. Develop Proposed Conditions Models. AWR will develop proposed conditions models for each flood mitigation scenario. For each scenario, the model mesh will be developed using the modified terrain, and several model iterations will be performed to analyze and optimize different crossing sizes along Barwell Street and Phoenix Road (Scenario 1), across Dairy Hill Lane into the lagoon (Scenario 2), and across Phoenix Road (Scenario 3). A final scenario (Scenario 4)will look at the impact of combining one or more of the other scenarios. Each flood mitigation scenario will be developed using the 1% annual exceedance probability (AEP) event (100-year) flows, and the performance of the proposed improvements will be checked at the 0.2%AEP (500-year) event. Final model results will be used to develop visual flood maps of each scenario. 5. Develop Mitigation Scenario Figures. AWR will include figures for each scenario, providing a simplified cross- section of key terrain features (e.g., proposed ditching and berming) as well as a plan view of each proposed scenario. These figures will be conceptual in nature and are not intended to reflect construction drawings of any features. 6. Summary Memorandum and Recommendations. AWR will provide a draft memorandum that summarizes the analysis including development and details of each scenario, the change in flood extents associated with each alternative, and recommendations. AWR will address comments from KPB/SBCFSA on the draft document and incorporate them into a final memorandum. AWR will also provide associated digital model files and GIS files for the KPB. Assumptions and Conditions This fee proposal is based on the following assumptions and conditions. 1. This fee proposal does not include design, cost estimates, or engineered drawings of any improvements. AWR Engineering, LLC ENGI :,E . ' 79 June 9, 2023 Fee Proposal for Flood Mitigation Alternatives on Scheffler Creek Page 3 of 3 2. Terrain representation of proposed flood mitigation scenarios will be approximate and based on available LiDAR data. The resulting figures and files will not be appropriate for developing construction drawings or evaluating detailed area-wide impacts/footprints of proposed alternatives. 3. One draft document and one final document are included. This fee proposal assumes a normal progression from draft to final that does not require significant additional analysis. 4. Modeling accuracy and assumptions will be as described in AWR's Japanese Alluvial Fan Flood Hazard Analyses final report. Schedule AWR is available to begin working on this project in July, following receipt of a Notice to Proceed. We will complete the work as soon as possible. With our current summer work schedules, we anticipate completion by October 31, 2023. Fee AWR proposes to complete this work for a lump sum of$30,848.00. If you have any questions or need any additional information, please do not hesitate to contact me. Thank you for your consideration of this proposal. Sincerely, �' J� 5Qe_Q_ Janie G. Dusel, PE, President AWR Engineering, LLC Attached: Fee proposal worksheet(1 page) AWR Engineering, LLC ENGI :,E . ' 80 Fee Proposal for Flood Mitigation Alternatives on Scheffler Creek Additonal Work to the Japanese Alluvial Fan Flood Hazard Analyses Project Prepared for:The Kenai Peninsula Borough Janie Dusel,PE Aaron Havel, PE Lori Jones, PE Task Description Principal Water Water Resources Water Resources Resources Project Engineer Engineer Engineer Update Existing Conditions Model Site visit 10 10 Modify model to only include Scheffler Creek domain 5 Update existing conditions model 1 2 5 Develop Proposed Conditions Models Terrain processing for proposed scenarios 3 6 20 Scenario 1 Develop model mesh 4 Analyze different crossings along Barwell St and Phoenix Rd 14 Review and map results 2 3 3 Scenario 2 Develop model mesh 4 Analyze different crossings on Dairy Hill Lane 14 Review and map results 2 3 3 Scenario 3 Develop model mesh 4 Analyze different crossings on Phoenix Road 14 Review and map results 2 3 3 Scenario 4 Develop model mesh 2 Analyze different crossings 10 Review and map results 2 3 3 Deliverables Mitigation Scenario Figures 2 4 12 Draft Memorandum 6 4 10 Final Memorandum 6 6 12 Total Hours 26 44 152 Hourly Rate $190.00 $157.00 $125.00 Subtotal $4,940 $6,908 $19,000 LABOR $30,848 EXPENSES $0 TOTAL COST $30,848.00 6/9/2023 81 AWR Engineering, LLC From: Ahlberg, Brenda To: Norm Reais; Stephen Sowell Cc: Jason Bicklina; Cinereski, Heather Subject: RE: Schaffer Ck quote Date: Friday,June 30, 2023 4:16:54 PM Attachments: image002.g_na AWR FeeProposal SchefflerCreekFloodMitigation 6-9-23.pdf External Email:This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Greetings Stephen The Seward Bear Creek Flood Service Area is considering the opportunity to evaluate Scheffler Creek. The analysis would be helpful for future mitigation applications. The attached proposal lists the following objectives to be completed: 1. develop and analyze four scenarios to potentially improve flooding in the Forest Acres Subdivision. 2. Evaluate existing culvert capacities and drainage patters. 3. Update hydraulic modelling 4. Modify current LiDAR data for terrain modifications to Barwell Street, Dairy Hill and Phoenix Road vicinities 5. Flood mitigation scenarios for #4 vicinities 6. Summary of recommendations Cost estimate is $30,848. The borough is requesting the City to consider contributing 50% of the cost. The service area board will be making final consideration at its July 1 Oth meeting. Please feel free to call me for additional details if needed. Thanks for your consideration, B Brenda Ahlberg Emergency Manager Community & Fiscal Projects bahlbera@kpb.us 907-262-2098 direct 907-231-6505 mobile 907-714-2415 duty officer 24/7 00 8816 3153 0508 sat phone 907-714-2395 fax Kenai Peninsula Borough Emergency Response Center 253 Wilson Lane Soldotna, AK 99669 bahlbera@kpb.us www.kpb.us- Information by department info.kpb.us- Updates from agencies responding to area-wide emergencies (new URL) @KPBAlerts- Facebook Page 82 KENAI PENINSULA BOROUGH 144 North Bi nkley Street So Mot ri i, AIaska 996 69 y ;s 83 i CITY OF SEWARD, ALASKA Sponsored by: Meszaros RESOLUTION 2020-009 A RESOLUTION OF THE CiTY COUNCIL OF THE CiTY OF SEWARD, ALASKA, All'-rHORIZING MAT('II1NG FINDS IN THE ANIOUNT OF $135,000 TONVARDS THE CIT)"S SHARE OF F[ NDiNC, F()R THE JAPANESE CREEK FEASIBI1.111' STUDY. AND APPROPRi:ATING FUNDS WIIF.RFA5, Sc m—d vas built by diverwig ills two rivers that civated our alluvial fans: Lowell Creek was diverted by [lie diversion tunnc i aml I apancse. Creek was diverted 90 degrees to the north by a levee built followlig the 1986 and 1995 flood events; and WHEREAS, the Seward. City Council has adopted federal and state legislative priority lists for nl:,rly tie trs, seel.WL, Federal and state f'Wi( s to create a Japanese Creek Draimlue yrea 11111VOi eln CT)t 11g11: a11d 1t'1II:RF:;�S, t le, Japlrlese (_'r'eek levee' HOWI)1'oteets u�'er .r l-lit r111111i:i11 111 liltrcttitrlICtllri. mc.ludim, all three (-)C our boo-OLt�L}' Sclln()iti_ eit% l)t;wcr I)larit, anal ProvidCli c moulltain l 1avc11 elder care i;lcility: ,wd NVIIE:RFAS, the JapGtlle e ( rcvk has a lllstorr nl stream dammflw. amd suxge-release flood~. Debris-laden flood evctlts hak c bce.•r1 rei)(irted I l times in the last rive decades, with major flood events in 1986, 1995, ?UUb, and 2012; and WHEREAS, the most recent study found the levee coa-Il(l he overtopped and breached in a 10 to ?`t vear flood event. In the event of a landslide in the cuoyon, and a subsequent debris- laden stirac release, flows would huvc an unpredictable flow path and could cause severe and l)kPSSih1v catastrophic daimwcs aloe t_,. the alluvial fan. and WHEREAS, the estimated cost of the to�:asibility study is S9(1{1.000, «ith the U_ S. Army Corps of I_Ait dicers (t SAC E) providing S4�0,000 towards this. The three Ii CL11 I?t1r ➢lc•I'`i 4ri-c to l�ro�ide the `� 50,(MO malcll- the Kcilai PCIIIIISUI.t Borott��h Mayor is it] suf111i 1't o1 prm iciirlti a 51 3S,00() m:Itch and a resolution will ei.t hef',re t11e "isscnlhly iI1 February, 2020; and (lie Seward Bear Creel: Flood Service Area leas allocated $180,000 of its funds; and WHEREAS, following the feasil)iliry stukly, con!iruction of the selected preferred. alternative will require a local match ofup try Th1 _• rc.lsihllity study oii its own will pr(-)� ide it1lp(Wi-Imit information re-arding the current :::1' 1 . d ?hr : Icy ee Lund ;tlternatlN e,. f0i flood risk lmtigalkj'liaild "'edimcnt management. NOW, 'THEREFORE, BE IT RESOLVED BY THE C'1.11- COI NCIL OF THE CITY OF SEWARD,ALASKA that: 84 -. CITY 4F SEWARD, ALASKA RESOLUTION 2020-009 Section 1. T1ie 0tv Coouncil liereby authorizes a City marching contribution ol'S 1 35.{ 00 toward the Japanese Cruck 1`ee isibilitv Study. Section 2. Funclmg in the �triomit of)135,000 Is lterebv apliropi-latcd I'l-oill the C- 11111,11 Acguisitimi Fund reserves accr Lml iw. (80010-00()0-3 1 10-0(10i1-';U 1 17 to the Project Conti-acted Services account no.80117- 0000-7009. Section 3. This resolution shall take effect immediately upon adoption. P.NSSED AN D ,APPROVED by the City Council of the City of Seward, Alaska, this I',latltiarv. 020. i It",'C lTY, F :SI-I'A tI' ALASKA '1 Christy Tf rry, M r AYES: Osenga, Baclaan, Butts, McClure, Terry NOES- None ABSENT: Seese, Lane ABSTAIN: None ATTEST: f �x Brenda J. EQ144 MMC City Clerk rrrrq�axrx�xr. (City Se OF Scw, "•,, 0110 1 .,. r a SEA t{ i f# iL.ff L � I i __0_ M s i OF 85 Council Agenda Statement Meeting Date: January 27, 2020 To: City Council Through: Scott Meszaros, City Manager From: Jackie C. Wilde, Community Development Director Agenda Item: A Resolution of The City Council of The City of Seward, Alaska, Authorizing Matching Funds in The Amount Of$135,000 Towards the City's Share ofFunding for The Japanese Creek Feasibility Study, and Appropriati ds BACKGROUND & JUSTIFICATION: The Seward City Council has adopted federal and state legislative priority lists for many years, seeking federal and state funds to create a Japanese Creek Drainage Area Improvement Plan. Seward was built by diverting the two rivers that created our alluvial fans. Lowell Creek was diverted by the diversion tunnel and Japanese Creek was diverted 90 degrees to the north by a levee built following the 1986 and 1995 flood events. Japanese Creek has a history of stream damming and surge-release floods. Debris-laden flood events have been reported 11 times in the last 5 decades with major flood events in 1986, 1995, 2006, and 2012. The most recent study found the levee could be overtopped and breached in a 10 to 20-year flood event. In the event of a landslide in the canyon, and subsequent debris laden surge release, flows would have an unpredictable flow path and could cause severe and possibly catastrophic damages along the alluvial fan. The Japanese Creek levee now protects over $140 million in infrastructure, including all three of our borough schools, city power plant, and Providence Mountain Haven elder care facility. The Seward/Bear Creek Flood Service Area Board has determined Japanese Creek levee as their number one priority for risk mitigation. In 2010, the City requested assistance from the USACE under the Continuing Authorities Program Section 205 of the 1948 Flood Control Act, as amended. In 2013, the US Army Corps of Engineers completed a $I OOK preliminary study and authorized the project to progress to the feasibility study phase. In 2019, the Borough Mayor, Seward City Manager and SBCFSA board chair requested the USACE move forward with the feasibility study and agreed to share the cost of the required funding match. The estimated cost of the feasibility study is $900K, with the USACE providing $450K towards this. The three local partners are to provide the $450K match. The Kenai Peninsula Borough Mayor is in support of providing a$135,000 match and a resolution will go before the assembly in February and the Seward Bear Creek Flood Service Area has allocated $180,000 of its funds. Following the feasibility study, construction of the selected prefer-red alternative will require a local match of up to 35%. 86 INTENT This $ 135,000 contribution will be used to conduct a feasibility study that will provide important information regarding the current status of the levee and alternatives for flood risk mitigation and sediment management. CONSISTENCY CHECKLIST: Yes No N/1. A Comprehensive Plan (2030, approved by Council May 30, 2017) x 14 Natural Hazards 14.2 14.2.3 (Pages 31 &32) 2. Strategic Plan (Approved by Council Resolution 99-043): x 3. Other x FISCAL NOTE: Matching funds for this study will be appropriated from the Capital Acquisition Fund. Current reserve levels in this fund are just over$1.6 million. Approved by Finance Department ATTORNEY REVIEW: Yes No Not Applicable—X RECOMMENDATION: City Council approves Resolution 2020- 009 Authorizing Matching Funds in The Amount Of $135,000 Towards the City's Share of Funding for The Japanese Creek Feasibility Study, and Appropriating Funds. 87 From: Ahlberg, Brenda To: Norm Reais; Stephen Sowell Cc: Naneth Ambrosiani; Harbaugh. Brandi; Cinereski. Heather; Hames.Janelle; Friedersdorff, Chad; Griffith.Christina Subject: Return of funds Date: Friday,June 30, 2023 12:25:22 PM Attachments: image001.g_na CoSeward R2020-009.pdf Ordinance 2022-19-68.g_df External Email:This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Greetings Team Seward The borough was recently awarded FEMA/State funds under disaster declaration DR4161 to repair and mitigation work on Dieckgraeff Road. The award also reimburses of preaward costs that included a portion of the City's contribution to the USACE feasibility study in the amount of $58,310.58. Please see attached legislation for your reference. Please feel free to contact us if you have questions; otherwise, "da check is in the mail." Happy Independence Day, B Brenda Ahlberg Emergency Manager Community & Fiscal Projects bahlberg@kpb.us 907-262-2098 direct 907-231-6505 mobile 907-714-2415 duty officer 24/7 00 8816 3153 0508 sat phone 907-714-2395 fax Kenai Peninsula Borough Emergency Response Center 253 Wilson Lane Soldotna, AK 99669 bahlberg@kpb.us www.kpb.us- Information by department info.kpb.us- Updates from agencies responding to area-wide emergencies (new URL) @KPBAlerts- Facebook Page KENAI PENINSULA BOROUGH 144 North Bink[ey Street Soldotna, Al isk�i 99669 �w .k 88 Resolution 2023-085: Authorizing The City Manager To Enter Into A Contract With AK Tree Service, LLC, For The Purpose Of Clearing Transmission Line Corridors As Assigned By The City's Electric Utility In An Amount Not To Exceed $350,000 Documents: • Agenda Statement • Resolution 2023-085 • Attachments: o Signed Contract o Statement of Work 89 City Council Agenda Statement Meeting Date: July 24, 2023 I l( To: City Council Through: Norm Regis, Interim City Manager - From: Rob Montgomery, General Manager-Electric Agenda Item: Resolution 2023-085:Authorizing The City Manager To Enter Into A Contract With AK Tree Service,LLC,For The Purpose Of Clearing Transmission Line Corridors In Targeted Area In A Not-To-Exceed Amount Of$350,000 Background and justification: In 2021,the City's electric utility conducted a Request for Proposal and contracted with AK Tree Service for two years.Over those two years,AK Tree Service completed clearing of transmission line corridors along the Seward Highway and along Nash Road. Much of this work was in difficult terrain and required extensive clearing,with many tall trees requiring individual climbers in order for the trees to be taken down. The previous clearing work conducted by AK Tree Service has helped the City reduce system power outages by nearly 75 percent.Once the clearing work in 2023 is completed,the City's transmission line corridors will be caught up.Moving forward,it will be much easier for the corridors to be maintained on a regular schedule by City of Seward Electric crews. It will be necessary every few years to bring AK Tree Service or another contractor into Seward to maintain the most difficult sections of the transmission line corridors. In 2023,AK Tree Service will be assigned transmission line sections between MP 18 (Snow River)and MP 19.5 of the Seward Highway and between MP 7 and MP 10 ofthe Seward Highway around Grouse Lake.The clearing of these sections will be another step in providing more reliable electric service to the Seward area in the future. Funding for this contract was already included in the Operating Budget. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 3.7.1.4"Continue to upgrade and expand utilities to meet existing needs and encourage future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: S 350,000 This legislation(✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $350,000 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): X Budgeted Line item(s): 15000-3004-7009 Not budgeted Not applicable Finance Director Signature: 3 A V IV 90 Attorney Review✓ Administration Recommendation X] Yes X Adopt Resolution Not applicable Other: 91 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-085 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Enter Into A Contract With AK Tree Service, LLC, For The Purpose Of Clearing Transmission Line Corridors As Assigned By The City's Electric Utility In An Amount Not To Exceed$350,000 WHEREAS, AK Tree Service has contracted with the City for the past two years and has conducted extensive clearing in the worst sections of the City's transmission line corridors; and WHEREAS, when heavy clearing in assigned sections is completed in 2023, the City's transmission line corridors will be caught up and future maintenance efforts—conducted on a regular schedule—will be more manageable and less expensive: and WHEREAS, the primary sections remaining to be cleared are between Milepost 18 (Snow River Bridge) and MP 19.5 of the Seward Highway, and between MP 7 and MP 10 (Grouse Lake) of the Seward Highway; and WHEREAS, clearing work conducted by AK Tree Service in 2023 will begin in early August and run through October 31; and WHEREAS, clearing work completed over the past two years has helped decrease power outages on Seward's electric system by nearly 75 percent; and WHEREAS,funding for this contract is including in the operating budget. 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 AK Tree Service, LLC to complete heavy clearing on the City's remaining transmission line corridors. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July 2023. 92 CITY OF SEWARD,ALASKA RESOLUTION 2023-085 THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 93 CM OF SEWARD City Managers Office t'.t). lliw, 167 +kC7 22 l It,17 907.22)_lirM h\ Ill}Aa1:1111i S11VO Mots l aidAwt 5c•�4:ar[l, .1laskca't!�Gli I - PROFESSIONAL SERVICES CONTRACT RIGHT-OF-LVAY(TV A,RING SERVICES CITI'OF SEWARD SEWARM:ALASKA THIS original CONTRAC"I' shade on the 24th of July. -1023 between the CITY OF SEWARD, ALASKA (the "City"). acting by and through the City Manager or other City authorized representative (its "Contracting Officer") and AK Free Service, LLC. its successors and assigns (.the "Contractor") as follows: The Contractor, for and in consideration of the payment or payments herein specified and agreed to by the parties, hereby covenants and agrees to funiish all equipment, n-taterial, and labor required to complete the WORK according to the attached STATEMENT OF WORK. The Contractor further agrees to be bound by all representations of the Contractor in the Contract and take all necessary steps to remain in compliance with all such representations. The Contractor hereby agrees that the time and materials, not-to-exceed price set forth below, is full compensation for furnishing all equipment, material, and labor which may be required in the prosecution and c[n ipletion of the whole work to be done under this Contract no later than October 31, 2023 and in all respects to complete the Contract to the satisfaction of the City. The Contract payment shall not exceed three-hundred-and-fifty-thousand dollars ($350.000) for all items over a three-month period beginning August 1, 2023 and concluding October 31, 2073. Payment w's1I be made every two weeks upon receipt and approval of an invoice for work accomplished in accordance with the attached STATEMENT OF WORK. The amounts payable to Contractor shall not exceed the sums identified in this paragraph without the prior written approval of the City, The Contractor shall procure and maintain during the life of this contract, Worker's Compensation insurance, including Employer's Liability Coverage, in accordance with all applicable statutes of the State of Alaska, The Contractor shall procure and maintain during the life of this contract, Commercial General Liability Insurance on an "Occurrence Basis" with limits of liability not less than S2,000,000 per occurrence and/or aggregate combined single limit, Personal Injury, Bodily Injury and Property Damage. C o\erage shall include the following extensions: (A) Contractual Liability, (B) Products and Completed Operations; (C) Independent Contractors Coverage; (D) Broad Form General liability Extensions or equivalent; (E) Deletion of all Explosion, Collapse and Underground (XCU) Exclusions. if applicable; (F) Per contract aggregate. The Contractor shall procure and maintain through contract life Motor Vehicle Liability Insurance, including applicable No-Fault coverages, with limits of liability not less than S1,000,000 per occurrence combined single limit Bodily Injury and Property Damage. Coverage shall include all owned vehicles, all non-owned vehicles. and all hired vehicles. The following shall be Additional Insureds on the General Liability and Motor Vehicle Liability Insurance: The City of Seward, including all elected and appointed officials, all employees and 2023 ROW Clearing Page ] of 94 volunteers, all boards, commissions and/or authorities and their board members, employees, and volunteers. This coverage shall be primary to the Additional Insureds, and not contributing with any other insurance or similar protection available to the Additional Insureds, whether other available coverage be primary,contributing or excess. Worker's Compensation Insurance, Commercial general Liability Insurance and Motor Vehicle Liability Insurance, as described above, shall include an endorsement stating the following: "Thirty (30) days Advanced Written. Notice of Cancellation, or Non-renewal, or Amendment shall be sent to: City of Seward,Engineering Department,P. O.Box 167, Seward,AK 99664. The Contractor shall provide the City of Seward at the time contracts are returned for execution, Certificates of Insurance and/or policies, acceptable to the City of Seward,as listed below: a. One(1)copy of Certificate of Insurance for Worker's Compensation Insurance; b. One(1)copy of Certificate of Insurance for Commercial General Liability Insurance; c. One(1)copy of Certificate of Insurance for Vehicle Liability Insurance; e. If so requested,Certified Copies of all policies shall be furnished. If any of the above coverages expire during the term of this contract, the Contractor shall deliver renewal certificates and/or polices to the City of Seward at least ten(10) days prior to the expiration date. To the fullest extent permitted by law, AK Tree Service, LLC agrees to defend, indemnify and hold harmless the City of Seward, its elected and appointed officials, employees, insurers and volunteers against any and all liabilities, claims, demands, lawsuits, or losses, including costs and attorney fees incurred in defense thereof,arising out of or in any way connected or associated with this contract. The Contractor further covenants and agrees that all of the work and labor shall be done and performed in the best and most workmanlike manner and that all material and labor shall be in strict and entire conformity in every respect with the governing standards and practices of the industry and if any Work shall be rejected by the Contracting Officer as defective or unsuitable,then such Work shall be corrected to the satisfaction of the Contracting Officer, at the cost and expense of the Contractor. The Contractor further covenants and agrees that the tasks outlined in Attachment A will be done to the complete satisfaction of the City, and in accordance with the laws of the State of Alaska and the City of Seward. It is specifically understood and agreed that no claim for additional work or materials, done or furnished by the Contractor and not specifically provided for herein,will be allowed by the Contracting Officer, nor shall the Contractor do any work or furnish any material not covered by this Contract,unless such work is ordered in writing by the Contracting Officer. In no event shall the Contractor assert any claims against the City by reason of verbal directions or instructions given by the Contracting Officer or his representatives, nor will the City be liable for any material furnished or used, or for any work or labor done, unless the materials, work, or labor are required by the Contract or on written order first being given by the Contracting Officer. Any such work or materials which may be done or furnished by the Contractor without written order first being given.shall be at the Contractor's own risk,cost, and expense and the Contractor hereby covenants and agrees to make no claim for compensation for work or materials done or furnished without such written order. The Contractor may not assign or subcontract performance of this Contract, without written approval by the City. The Contractor is an independent contractor and is not an employee or agent of the City. 2023 ROW Clearing Page 2 of 3 95 Claims by the City resulting from Contractor's failure to comply with the terms of and specifications of this Agreement and/or default hereunder may be recovered by City by withholding the amount of such claims from compensation otherwise due Contractor for work performed or to be performed. City shall notify Contractor of any such failure, default or damage therefrom as soon as practicable after discovery of such event by written notice. Nothing provided herein shall be deemed as constituting an exclusive remedy on behalf of City,nor a waiver of any other rights hereunder at law or in equity. The venue of any legal action between the parties arising as a result of this Agreement shall be laid in the Third Judicial District of the Superior Court of the State of Alaska, at Seward, Alaska unless a non- waivable federal or state law requires otherwise. This Agreement shall be interpreted in accordance with the laws of the State of Alaska. No failure on the party of the City to enforce any covenant or provision herein contained, nor any waiver of any right hereunder by City, unless in writing and signed by the parties sought to be bound, shall discharge or invalidate such covenants or provisions or affect the right of the City to enforce the same or any other provision in the event of any subsequent breach or default. The terms, conditions and covenants contained in this Agreement shall apply to, inure to the benefit of, and bind the parties and their respective successors. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior negotiations and understandings are superseded and replaced by this Agreement and shall be of no farther force and effect. No modification of this Agreement shall be of any force or effect unless reduced to writing, signed by both parties and expressly made a part of this Agreement. IN WITNESS WHEREOF the parties hereto have executed this Agreement, effective the day and year first above written. CITY OF SEWARD,ALASKA AK Tree Service,LLC City Manager Principal ATTEST: ,�P ILc �L rr Brenda Ballou City Clerk (Seal) Attachments: Statement of Work 2023 ROW Clearing Page 3 of 3 96 RIGHT-OF-WAY CLEARING 2023 Statement of Work: Beginning in August 2023, AK Tree Service will conduct clearing work on behalf of the City of Seward on targeted transmission line corridors. In addition to heavy clearing of the corridors, the assignment will include working with Seward Electric personnel to identify potential "trouble" trees along the corridors for removal. Also, based upon budget, some clean-up assignments along distribution line corridors may be assigned. As such, AK Tree Service shall be retained for the express purpose of: 1) Performing heavy clearing and "trouble" tree removal on Seward Electric's transmission corridor between Milepost 18 (Snow River Bridge) to MP 19.5 of the Seward Highway. 2) Performing heavy clearing and "trouble"tree removal on the Grouse Lake transmission corridor between MP 7 and MP to of the Seward Highway. 3) Completing distribution line clearing as assigned by the Seward Electric crew foreman. 4) Trees dropped during clearing work will be cut into lengths to meet U.S. Forestry requirements. 5) Seward Electric representatives will participate in planning and safety meetings as necessary to set priorities and monitor work. 6) The contract will run through October 31, 2023 or until assigned work is completed. 7) Payment will be made to the contractor every two weeks upon receipt of invoice and inspection by Seward Electric of completed work. 8) Contractors must adhere to industry approved standards and comply with local, state and federal rules and best practices. 97 Action Memorandum 2023-009: Authorizing The City Manager To Approve A Services Agreement With Kelly Connect For The Provision Of Xerox Services Documents: • Action Memorandum • Service Agreement • Equipment Schedule 98 City of Seward Action Memorandum 2023-009 Meeting Date: July 24, 2023 To: City Council Through: Norm Regis,Acting City Manager From: Dustin Phillips Subject: Action Memorandum 2023-009: Authorizing The City Manager To Approve A Services Agreement With Kelly Connect For The Provision Of Xerox Services Background and justification: The original service agreement approved by Council in January of 2019 for 10 Xerox brand multi-function printers expired in February of 2023. Through evaluation of current usage levels,it has been determined that moving to a higher grade of devices will better serve the current and future needs of the City's departments. The proposed 60-month service agreement would replace 8 of the machines with newer and higher-grade machines to better meet the needs of the City's departments. One machine will be eliminated from the agreement, and one machine was replaced earlier this year and is included in a separate agreement. Kelly Connect holds the current support agreement for the City's Xerox machines and continuing with Kelly Connect and Xerox devices is in the best interest of the City. By upgrading our machines,we will be using the same models of devices that Kelly Connect supports for several other organizations in the Seward area. This will help ensure local availability of parts and supplies when the need arises. Kelly Connect holds the state SOURCEWELL contract#030321-XOX for these services. By utilizing this pricing contract,we are able to ensure the City is receiving the best pricing for these services. Approval of this action memorandum will authorize the City Manager to enter into a 60-month service agreement with Kelly Connect for Xerox multi-function printers and support. 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: S 0 This legislation(✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ $1,186.51 /month for 60 months Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): x Budgeted Line item(s): Not budgeted Not applicable 99 Fund Balance Information Affected Fund(✓): x General SMIC Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance/Net Position $6,414,949 Finance Director Signature: 4, Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation Iq Adopt AM Other: Disposition (Completed by the City Clerk's Office) 100 KELLEY MASTER AGREEMENT CONNECT AGREEMENT NO.: CUSTOMER • or • FULL LEGAL NAME:City of Seward ADDRESS:410 Adams St Seward,AK 99664 CONTACT NAME Dustin Phillips PHONE#:(907)224-4062 FEDERAL TAX ID#: EQUIPMENT ❑ SEE ATTACHED SCHEDULE NOT BEGINNING METER MONTHLY IMAGE EXCESS PER IMAGE FINANCED READING ALLOWANCE CHARGE PLUS TAX TYPE,MAKE,MODEL NUMBER,SERIAL NUMBER, UNDER THIS AND INCLUDED ACCESSORIES AGREEMENT B&W COLOR B&W COLOR B&W COLOR Xerox AltaLink B8145 H2 1 ❑ Xerox AltaLink C8130 T2 3 ❑ Xerox AltaLink C8130 T2 3 ❑ Xerox AltaLink C8145 H2 1 ❑ El El El TOTAL CONSOLIDATED MONTHLY IMAGE ALLOWANCE AND EXCESS PER IMAGE CHARGES IF CONSOLIDATED 10,000 0 $0.0070 $0.0650 MONTHLY BASE PAYMENT AMOUNT:$1,186.51(PLUS TAX) TERM IN MONTHS:60 METER FREQUENCY:Quarterly SECURITY DEPOSIT:$0.00 ADVANCE PAYMENT: (PLUS TAX)to be applied to first Payment due ORIGINATION FEE: $75.00(PLUS TAX) METER FEE:$ EQUIPMENT LOCATION:As Stated Above ❑SEE ATTACHED SCHEDULE THIS AGREEMENT IS NON-CANCELABLE AND IRREVOCABLE.IT CANNOT BE TERMINATED. PLEASE READ CAREFULLY BEFORE SIGNING. CUSTOMER'S • ' BY SIGNING THIS PAGE,YOU REPRESENT TO US THAT YOU HAVE RECEIVED, READ,AND ACKNOWLEDGED THE ADDITIONAL TERMS AND CONDITIONS APPEARING ON THE SECOND PAGE OF THIS TWO-PAGE AGREEMENT.THIS AGREEMENT IS BINDING UPON OUR ACCEPTANCE HEREOF. (As Stated Above) X CUSTOMER SIGNATURE PRINT NAME&TITLE DATE • • Kelley Connect OWNER SIGNATURE PRINT NAME&TITLE DATE 22710 72nd Ave S Kent, WA 98032-1926 UNCONDITIONAL GUARANTY The undersigned,jointly and severally if more than one,unconditionally guarantee(s)that the Customer will timely perform all obligations,including all and any debts,liabilities,and obligations of every nature or form,now existing or hereafter arising or acquired,under the Agreement or any supplements hereto.The undersigned also waive(s)any notification if the Customer is in default and consent(s) to any extensions or modifications granted to the Customer.In the event of default,the undersigned will immediately pay all sums due under the terms of the Agreement without requiring us or our assignee,if applicable,to proceed against Customer or any other parry or exercise any rights in the Equipment.The undersig ned hereby binds any respective administrators,representatives,successors, and authorized assigns.THE UNDERSIGNED,AS TO THIS GUARANTY,AGREE(S)TO THE DESIGNATED FORUM AND CONSENT(S)TO PERSONAL JURISDICTION,VENUE,AND CHOICE OF LAW AS STATED IN THE AGREEMENT,AGREE(S)TO PAY ALL COSTS AND EXPENSES, INCLUDING ATTORNEY FEES, INCURRED BY US OR OUR ASSIGNEE RELATED TO THIS GUARANTY AND THE AGREEMENT,WAIVE(S)A JURY TRIAL AND TRANSFER OF VENUE,AND AUTHORIZE(S)OBTAINING CREDIT REPORTS. SIGNATURE: X INDIVIDUAL: DATE SIGNATURE: X INDIVIDUAL: DATE CERTIFICATE OF The Customer hereby certifies that all the Equipment:1)has been received,installed,and inspected,and 2)is fully operational and unconditionally accepted. SIGNATURE: X NAME&TITLE: DATE: 018861-ZUP03A(RL)_0218 PAGE 9 1 295 ADDITIONAL • • 1. AGREEMENT:For business purposes only,you agree to rent from us the goods,together with all replacements,parts,repairs,additions,and accessions incorporated therein or attached thereto and any and all proceeds of the foregoing, including,without limitation,insurance re cove des(the"Equipment")and/or to finance certain licensed software and services("Financed Items',which are included in the word"Equipment"unless separately stated),all as described on page 1 of this Agreement,excluding equipment marked as not financed under this Agreement,as it may be supplemented from time to time.You agree to all of the terms and conditions contained in this Agreement and any supplement,which (with the acceptance certification)is the entire agreement regarding the Equipment("Agreement")and which supersedes any purchase order or invoice.You authorize us to correct or insert missing Equipment identification information and to make corrections to your proper legal name and address.This Agreement becomes valid upon execution by us.This Agreement is binding upon our acceptance hereof and will begin on the date the Equipment is delivered to you or any later date we designate.Unless otherwise stated in an addendum hereto,this Agreement will renew month to month unless you send us written notice at least 30 days(before the end of any term)that you want to return the Equipment,and you timely return the Equipment(according to the conditions herein).Any security deposit will be commingled with our assets,will not earn interest,and will be returned at the end of the term, provided you are not in default.If any provision of this Agreement is declared unenforceable in any jurisdiction,the other provisions herein shall remain in full force and effect in that jurisdiction and all others.You shall deliver all information requested by us which we deem reasonably necessary to determine your current financial condition and faithful performance of the terms hereof. 2. RENT,TAXES AND FEES:You will pay the Monthly Base Payment Amount(as adjusted)when due,plus any applicable sales,use and property taxes with respect to this Agreement and the Equipment.The Monthly Base Payment amount will be adjusted proportionately upward or downward:(1)by up to 10%to accommodate changes in the actual Equipment cost,(2)if the shipping charges or taxes differ from the estimate given to you,and(3)to comply with the tax laws of the state in which the Equipment is located. If we pay any taxes,insurance or other expenses that you owe hereunder,you agree to reimburse us when we request and to pay us a processing fee for each expense or charge we pay on your behalf.We may charge you for any filing fees required by the Uniform Commercial Code(UCC)or other laws,which fees vary state-to-state.We own the Equipment(excluding any Software).You agree to indemnify us for the loss of any U.S.federal income tax benefits resulting from your acts or omissions inconsistent with this Agreement or our ownersh ip of the Equipment.By the date the first Payment is due,you agree to pay us a origination fee,as shown on our invoice or addendum,to cover us for all closing costs.We will have the right to apply all sums,received from you,to any amounts due and owed to us underthe terms of this Agreement.If for any reason your check is returned for nonpayment, you will pay us a bad check charge of$30 or,if less,the maximum charge allowed by law.We may make a profit on any fees,estimated tax payments and other charges paid under this Agreement.You cannot pay off this Agreement or return the Equipment prior to the end date without our consent.If we consent,we may charge you,in addition to other amounts owed,an early termination fee up to 10%of the Fair Market Value of the Equipment on the date of this Agreement. 3. MAINTENANCE AND LOCATION OF EQUIPMENT;SECURITY INTEREST;SOFTWARE/DATA:At your expense,you agree to keep the Equipment:(1)in good repair,condition and working order,in compliance with applicable manufacturers'and regulatory standards;(2)free and clear of all liens and claims;and(3)only at the installation address,and you agree not to move it unless we agree in writing.As long as you have given us the written notice as required in paragraph 1 prior to the expiration or termination of this Agreement's term,you will return all but not less than all of the Equipment and all related manuals and use and maintenance records to a location we specify,at your expense,in retail re-saleable condition,full working order and complete repair.If this Agreement is deemed to be a secured transaction,you grant us a security interest in the Equipment to secure all amounts you owe us under any agreement with us, and you authorize us to file a financing statement(UCC-1).You will not change your state of organization,headquarters or residence without providing prior written notice to us so that we may amend or file a new UCC-1.You will notify us within 30 days if your state of organization revokes or terminates your existence.Except as provided in this paragraph,references to"Equipment"include any software referenced above or installed on the Equipment.We do not own the software and cannot transfer any interest in it to you.We are not responsible for the software or the obligations of you or the licensor under any license agreement.You are solely responsible for removing any data that may reside in the Equipment you return,including but not limited to hard drives,disk drives or any other form ofinemory. 4. COLLATERAL PROTECTION;INSURANCE;INDEMNITY;LOSS OR DAMAGE:You agree to keep the Equipment fully insured against risk and loss,with us as lender's loss payee,in an amount not less than the original cost until this Agreement is terminated.You also agree to obtain a general public liability insurance policy with such coverage and from such insurance carrier as shall be satisfactory to us and to include us as an additional insured on the policy.Your insurance policy(s)will provide for 10 days advance written notice to us of any modification or cancellation.You agree to provide us certificates or other evidence of insurance acceptable to us.If you fail to comply with this requirement within 30 days after the start of this Agreement,we may(A)secure property loss insurance on the Equipment from a carder of our choosing in such forms and amounts as we deem reasonable to protect our interests.If we place insurance on the Equipment,we will not name you as an insured and your interests may not be fully protected.If we secure insurance on the Eq uipment,you will pay us an amount for the premium which may be higher than the premium that you would pay if you placed the insurance independently and an insurance fee which may result in a profit to us through an investment in reinsurance or(B)charge you a monthly property damage surcharge of up to.0035 of the Equipment cost as a result of our credit risk and administrative and other costs,as would be further described on a letter from us to you.We may make a profit on this program.NOTHING IN THIS PARAGRAPH WILL RELIEVE YOU OF RESPONSIBILITY FOR LIABILITY INSURANCE ON THE EQUIPMENT.We are not responsible for,and you agree to hold us harmless and reimburse us for and,if requested,to defend us against,any claim for any loss,expense,liability or injury caused by or in anyway related to delivery,installation,possession,ownership,use,condition,inspection,removal,return or storage of the Equipment.You are responsible for the risk of loss orfor any destruction of or damage to the Equipment.You agree to promptly notify us in writing of any loss or damage. If the Equipment is destroyed and we have not otherwise agreed in writing,you will pay to us the unpaid balance of this Agreement,including any future rent to the end of the term plus the booked residual of the Equipment(both discounted at 4%).Any proceeds of insurance will be paid to us and credited,at our option,against any loss or damage.You authorize us to sign on your behalf and appoint us as your attorney-m- fact to endorse in your name any insurance drafts or checks issued due to loss or damage to the Equipment.No loss or damage shall relieve you of your payment obligations under this Agreement.All indemnities will survive the expiration or termination of this Agreement. 5. ASSIGNMENT:YOU HAVE NO RIGHT TO SELL,TRANSFER,ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS AGREEMENT,without our prior written consent.Without our prior written consent,you shall not reorganize or merge with any other entity or transfer all or a substantial part of your ownership interests or assets.We may sell,assign,or transfer this Agreement without notice.You agree that if we sell,assign or transfer this Agreement,our assignee will have the same rights and benefits that we have now and will not have to perform any of our obligations.You agree that the assignee will not be subject to any claims,defenses,or offsets that you may have against us.You shall cooperate with us in executing any documentation reasonably required by us or our assignee to effectuate any such assignment.This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. 6. DEFAULT AND REMEDIES:You will be in default if:(a)you do not pay any Payment or other sum due to us or any other person when due or ifyou fail to perform in accordance with the covenants,terms and conditions ofthis Agreement or any other agreement with us or any of our affiliates,(b)you make or have made any false statement or misrepresentation to us,(c)you or any guarantor dies,dissolves or terminates existence,(d)there has been a material adverse change in your or any guarantor's financial,business or operating condition,or(e)any guarantor defaults under any guaranty for this Agreement.If any amount payable to us is not paid when due,you will pay a late charge equal to:1)the greater often(10)cents for each dollar overdue or twenty-sic($26.00)dollars,or 2)the highest lawful charge,if less.If you are ever in default,at our option,we can terminate this Agreement and require that you pay the unpaid balance of this Agreement,including any future Payments to the end of the term plus the booked residual of the Equipment(both discounted at 4%).We may recover default interest on any unpaid amount at the rate of 12%per year. Concurrently and cumulatively,we may also use any or all of the remedies available to us under Articles 2A and 9 of the UCC and any other law,including requiring that you:(1)return the Equipment to us to a location we specify,and(2)immediately stop using any Financed Items.In addition,we will have the right,immediately and without notice or other action,to set-off against any of your liabilities to us any money,including depository account balances,owed by us to you,whether or not due. In the event of any dispute or enforcement of rights under this Agreement or any related agreement,you agree to pay our reasonable attorney's fees(including any incurred before or at trial,on appeal or in any other proceeding),actual court costs and any other collection costs,including any collection agency fee.If we have to take possession of the Equipment,you agree to pay the costs of repossession,moving,storage,repair and sale.The net proceeds of the sale of any Equipment will be credited against what you owe us under this Agreement.YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY CONSEQUENTIAL,INDIRECT OR INCIDENTAL DAMAGES FOR ANY DEFAULT,ACT OR OMISSION BY ANYONE.Any delay or failure to enforce our rights under this Agreement will not prevent us from enforcing any rights at a later time.You agree that this Agreement is a"Finance Lease"as defined by Article 2A of the UCC and your rights and remedies are governed exclusively by this Agreement.You waive all rights under sections 2A-507 through 522 of the UCC.If interest is charged or collected in excess of the maximum lawful rate,we will not be subject to any penalties. 7. FAXED OR SCANNED DOCUMENTS,MISC.:You agree to submit the original duly-signed documents to us via overnight courier the same day of the facsimile or scanned transmission of the documents.The parties agree that:(i)this Agreement and any related documents hereto may be authenticated by electronic means,(ii)the"original"of this Agreement shall be the copy that bears your manual,facsimile,scanned or electronic signature and that also bears our manually signed signature,and(iii)to the extent this Agreement constitutes chattel paper(as defined by the UCC),a security interest may only be created in the original.You agree not to raise as a defense to the enforcement of this Agreement or any related documents thatyou executed or authenticated such documents by electronic or digital means or that you used facsimile or other electronic means to transmit your signature on such documents. Notwithstanding anything to the contrary herein,we reserve the right to require you to sign this Agreement or any related documents hereto manually.By providing any telephone number,now or in the future,for a cell phone or other wireless device,you are expressly consenting to receiving communications,regardless of their purpose,at that number,including,but not limited to,prerecorded or artificial voice message calls,text messages,and calls made by an automatic dialing system from us and our affiliates and agents. These calls and messages may incur access fees from yourprovider. 8. WARRANTY DISCLAIMERS:YOU AGREE THAT YOU HAVE SELECTED ANY/ALL THIRD PARTY SUPPLIERS AND EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT AND YOU DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY US.YOU WILL CONTINUE TO MAKE ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR MANUFACTURER,AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT.YOU ARE NOT ENTITLED TO REDUCE OR SET-OFF AGAINST AMOUNTS DUE UNDER THIS AGREEMENT FOR ANY REASON.WE MAKE NO WARRANTIES,EXPRESS OR IMPLIED,OF,AND TAKE ABSOLUTELY NO RESPONSIBILITY FOR,MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE,CONDITION,QUALITY,ADEQUACY,TITLE,DATA ACCURACY,SYSTEM INTEGRATION,FUNCTION,DEFECTS,OR ANY OTHER ISSUE IN REGARD TO THE EQUIPMENT,ANY ASSOCIATED SOFTWARE AND ANY FINANCED ITEMS.WE ASSIGN TO YOU ANY WARRANTIES GIVEN TO US. 9. LAW,JURY WAIVER:Agreements,promises and commitments made by Owner,concerning loans and other credit extensions must be in writing,express consideration and be signed by Owner to be enforceable. This Agreement may be modified only by written agreement and not by course of performance.YOU AGREE THAT THIS AGREEMENT AND ANY CLAIM RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE IN WHICH OUR(OR,IF WE ASSIGN THIS AGREEMENT,OUR ASSIGNEE'S)PRINCIPAL PLACE OF BUSINESS IS LOCATED AND ANY DISPUTE CONCERNING THIS AGREEMENT WILL BE ADJUDICATED IN A FEDERAL OR STATE COURT IN SUCH STATE.YOU HEREBY CONSENT TO PERSONAL JURISDICTION AND VENUE IN SUCH COURTS AND WAIVE TRANSFER OF VENUE. For any action arising out of or relating to this Agreement or the Equipment,YOU AND WE WAIVE ALL RIGHTS TO A TRIAL BYJURY. 10. MAINTENANCE AND SUPPLIES:The charges established by this Agreement include payment forthe use of the Equipment,accessories,maintenance during normal business hours,inspection,adjustment,parts replacement,drums, cleaning material required for proper operation and black toner and developer.Paper and staples must be separately purchased by you.Facsimile maintenance is provided during normal business hours and includes inspection,adjustment, parts replacement and cleaning material required forthe proper operation.Facsimile drums and toner cartridges must be purchased separately.Colortonerand developers,not included in this Agreement,will be billed separately.If necessary, the service and supply portion of this Agreement may be assigned.An image is defined as an imaged one-sided sheet of 8.5"x 11"sheet of paper or smaller.When toner is part of this contract,we agree to provide toner(s)in sufficient quantities as it relates to your usage,and the manufacturers published yields which are based on 6%page coverage of toner to page ratio for black and white and 20%page coverage of toner to page ratio for full color.In the event overall toner use exceeds this,overages of toner expenses may be billed to you. 11. EXCESS CHARGES AND COST ADJUSTMENTS:You are entitled to make the total number of images shown under Image Allowance Per Machine(or Total Consolidated Image Allowance,if applicable)each period during the term of this Agreement.If you make more than the allowed images in any period,you will pay us an additional amount equal to the number of the excess images made during such period multiplied by the applicable Excess Per Image Charge. Regardless of the number of images made in any period,you will never pay less than the Monthly Base Payment Amount.You agree to comply with our billing procedures including,but not limited to,providing us with periodic meter readings on the Equipment.You agree that we may install an automatic meter reading agent on the Equipment.We may charge you a Meter Fee to cover our administrative costs of obtaining a meter reading if such agent is not installed.At the end of the first year of this Agreement and once each successive twelve-month period,the Monthly Base Payment Amount and the Excess Per Image Charges may be increased by a maximum of 15%of the then existing payment or charge. Images made on equipment marked as not financed under this Agreement will be included in determining your usage and excess charges. 12. UPGRADE AND DOWNGRADE PROVISION:AFTER COMMENCEMENT OF THE AGREEMENT AND UPON YOUR WRITTEN REQUEST,AT OUR SOLE DISCRETION,WE MAY REVIEW YOUR COPY VOLUME AND PROPOSE OPTIONS FOR UPGRADING OR DOWNGRADING THE EQUIPMENT TO ACCOMMODATE YOUR BUSINESS NEEDS. 13. TRANSITION BILLING:In order to facilitate an orderly transition,including installation and training,and to provide a uniform billing cycle,the start date of this Agreement(the"Effective Date")will be a date after the certification of acceptance of the Equipment,as shown on the first invoice.You agree to pay us an additional amount equal to 1/30rh of the Monthly Base Payment Amount for each day between the date the Equipment is delivered and the Effective Date, which will be added to your first invoice. 14. MISCELLANEOUS:You authorize us,our agent or our assignee to furnish your information,including credit application,payment history and account information,to credit reporting agencies and our assignees,potential purchasers or investors and parties having an economic interest in this Agreement or the Equipment,including,without limitation,the seller,supplier or any manufacturer of the Equipment.For security purposes and to help the government fight terrorism and money laundering activities,Federal law requires all financial institutions to obtain,verify,and record information that identifies each individual or commercial entity that enters into a customer relationship with the financial institution. For this reason,we may request the following identifying information:name,address,date of birth.We may also ask other questions or request other documents meant to verify your individual or commercial identity. 018861-ZUP03A(RL)_0218 PAGE 9? 295 EQUIPMENT SCHEDULE 114 � KELLEY `�-^�' r T AGREEMENT NO.: DESCRIPTIONOF • TYPE,MAKE,MODEL NUMBER AND INCLUDED ACCESSORIES SERIAL NO. 1 Xerox Altal-ink B8145 H2,4 520-sheet Trays, Inner Finisher,Vend Interface 3 Xerox Altal-ink C8130 T2, 4 520-sheet Trays 3 Xerox Altal-ink C8130 T2, 4 520-sheet Trays, Inner Finisher 1 Xerox Altal-ink C8145 H2, 4 520-sheet Trays, Inner Finisher VERIFICATION The undersigned acknowledges having received a copy of this Schedule.A copy of this document containing your original or facsimile signature,or other indication of your intent to agree to the terms set forth herein,shall be enforceable for all purposes. X CUSTOMER SIGNATURE PRINT NAME&TITLE DATE 018861-ZP02050716 103 295 Action Memorandum 2023-010: Opposing Kenai Peninsula Borough Resolution 2023- 048, Regarding The Change In Election Date Documents: • Action Memorandum • KPB Resolution 2023-048 104 City of Seward Action Memorandum 2023-010 Meeting Date: July 24, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Action Memorandum 2023-010: Opposing Kenai Peninsula Borough Resolution 2023-048, Regarding The Change In Election Date Background and justification: The Kenai Peninsula Borough will be evaluating KPB Resolution 2023-048 at their August 1, 2023 meeting. This resolution proposes placing an advisory question on the ballot at the next regular election (October 3, 2023) asking whether the Kenai Peninsula Borough should change its regular election date. Two items to consider regarding this proposal: 1. If the vote passes and the Assembly changes the borough's election day to November the cities will be forced to either 1. Buy our own equipment, or 2. Change our date as well. 2. If the borough and cities change to November 1st we will be competing with the State for the same election officials. The City of Seward is opposed to any action or change in the election date which has the potential to make elections more costly to the public, reduce voter turnout, or create additional barriers and confusion to the election process. Additionally, the resolution itself is very unclear as to the next steps, if this resolution does indeed pass. It states: WHEREAS, based on the results of an advisory vote on this question, an ordinance could be introduced to provide that the Borough's regular election will be held annually on the first Tuesday following the first Monday in November; and The resolution mentions that an ordinance"could be introduced'but provides voters no guarantee that it will be introduced. The resolution does not assure voters that if they vote in favor of this change that the election would indeed be changed. Because of these reasons, the City of Seward opposes KPB Resolution 2023-048. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: Strategic Plan: Other: 105 Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation(✓): Creates revenue in the amount of $ Creates expenditure in amount of: $ Creates a savings in the amount of $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund(✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare Motor Pool Other Note:amounts are unaudited Fund Balance/Net position—restricted $ Fund Balance/Net position—unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: No fiscal impact Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation rq Adopt AM Other: Disposition (Completed by the City Clerk's Office) 106 Introduced by: Derkevorkian Date: 07/11/23 Action: Vote: KENAI PENINSULA BOROUGH RESOLUTION 2023-048 A RESOLUTION PLACING AN ADVISORY QUESTION ON THE BALLOT AT THE NEXT REGULAR ELECTION TO BE HELD OCTOBER 3, 2023 ASKING WHETHER THE KENAI PENINSULA BOROUGH SHOULD CHANGE ITS REGULAR ELECTION DATE WHEREAS, Borough code, at KPB 4.10.050(A), currently provides: "Time of Regular Elections. Annually, on the first Tuesday of October, a regular election shall be held in the borough for the election of vacant borough offices, and for the determination of other matters as may be placed on the ballot"; and WHEREAS, based on the results of an advisory vote on this question, an ordinance could be introduced to provide that the Borough's regular election will be held annually on the first Tuesday following the first Monday in November; and WHEREAS, holding the regular election on the first Tuesday following the first Monday in November will mean that the Borough's regular election will occur on the same day as any regular Federal/State election that is administered by the State; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: SECTION 1. That a question in substantially the following form shall be placed before the voters of the Kenai Peninsula Borough at the next regular election to be held October 3, 2023, as an advisory vote: PROPOSITION NO. Shall the Kenai Peninsula Borough change the Borough's regular election date from the first Tuesday in October to the first Tuesday following the first Monday in November to align with the Federal and State election date? (THIS IS AN ADVISORY VOTE ONLY). YES NO SECTION 2. That this resolution takes effect immediately upon adoption. Kenai Peninsula Borough, Alaska Resolution 2023-048 107 Page 1 of 2 ADOPTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 11TH DAY OF JUNE 2023. Brent Johnson, Assembly President ATTEST: Michele Turner, CMC, Acting Borough Clerk Yes: No: Absent: Resolution 2023-048 Kenai Peninsula Borough,Alaska Page 2 of 2 108 var'COVE© SuN 26 N23 GF H OF J PORT AND COMMERCE ADVISORY BOARD PACAB �l-vy��� c�>�> K APPLICATION NAME: Bruce Jaffa STREET ADDRESS: 41575 Seward Highway. Moose Pass, Alaska 99631 MAILING ADDRESS: PQ Ilox 107 1+41nng(; a;;Cs; 4i;4Pk;; QQ621 HOME TELEPHONE: 907-288-3175 BUSINESS PHONE: 994-80091 907-940-0362 EMAIL: Bruce@jaffaconstruction.com LENGTH OF RESIDENCY IN THE SEWARD AREA: 46+-was 48+ Years PRESENTLY EMPLOYED AS: Jaffa Construction, Inc Quality Control Manager List any special training, education or background you have which may help you as a member of the Board: -u&ehe1l Gf-adstate High School Graduate, Retired Boilermaker, Parent of Seward High School Graduates, Seward property owner, Private Pilot Have you ever been involved in port operations? If so, briefly describe your involvement: No- Currently serve on the PACAB I am specifically interested in serving on the Port and Commerce Advisory Board because: Quality of life for residents of the East Peninsula including health, safety, jobs and education Have you ever served on a similar board elsewhere? Yes or No YES If yes, where? PACAB- MPAPC When? Current Are you available for meetings at noon(second Wednesday of each month)? Yes or No YES If appointed, are you willing to travel occasionally)? Yes or No YES ga I -,rune-44t�v-20-24 June 24, 2023 SIGNATUiF7 DATE 109 AGENDA STATEMENT Meeting Date: July 24, 2023 From: Jodi Kurtz, Deputy City Clerk Agenda Item: Non-Objection to Renewal of Liquor License BACKGROUND & JUSTIFICATION: The Seward City Council has the opportunity to object the renewal of the following Liquor License for the following business: Business: The Cookery Licensee: The Cookery, LLC Type: Restaurant/Eating Place License: 5400 The City of Seward Police Department, Fire Department, Finance Department, and the Kenai Peninsula Borough have no objections to the liquor license for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license renewal, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non-objection to the renewal of liquor license for The Cookery, LLC. 95400, Restaurant/Eating Place. 110 MEMORANDUM Date: July 6, 2023 RECEIVED To: John Rymer Finance/Public Utilities JUL 10 w Naneth Ambrosiani Finance/Leases OFFICE Chief Alan Nickell Police Department O THE CITY CLERK Chief Clinton Crites Fire Department From: Kris Peck, City Clerk RE: Verifying compliance for the RENEWAL of a liquor license The following business has applied for a liquor license renewal. Please review for compliance with all utilities, lease payments and assessments. Thank you. Name of Business: The Cookery Licensee: The Cookery, LLC Type of License: Restaurant/Eating Place License Number: 5400 -Department Status Initials Date Finance/Utilities C v�-Pe ,r„ ,, f77A JL? Finance/Leases Police ChiefAW 7 -7/.,3 7: Fire Chief �'� 1i ��G 11 7�fa�a3 �c Deadline for protest: Tuesday, August 29, 2023 (60 days from receipt of notification) Last regular council meeting for approval: Monday, August 28, 2023 PLEASE RETURN TO CITY CLERK no later than noon on Tuesday, August 22, 2023 111 w aF rye THE STATE Department of Commerce, Community, and Economic Development 0fAT ALCOHOL& MARIJUANA CONTROL OFFICE 550 West 7t"Avenue, Suite 1600 -_ C;L)VI RNOR 1i1KI DL'NI-EAVY Anchorage,AK 99501 �F ALAS Main: 907.269.0350 June 30, 2023 City of Seward, Kenai Peninsula Borough Via Email : kpeck@cityofseward.net; clerk@cityofseward.net ; micheleturner@kpb.us; tward@kpb.us; mlenkins@kpb.us; ivanhoose@kpb.us; clackinsky@kpb.us; cmolonev@kpb.us; maldridge@kpb.us, slopez@kpb.us; bcarter@kpb.us Re: Notice of 2023/2024 Liquor License Renewal Application License Type: Restaurant/ Eating Place License Number: 1 5400 Licensee: The Cookery, LLC Doing Business As: The Cookery We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction.This is the notice required under AS O4.11.480. A local governing body may protest the approval of an application(s) pursuant to AS O4.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Joan Wilson, Director amco.localgovernmentonly@alaska.gov 112 ����4LTdIrI/f�l Office of Borough Alaska 99669 • 907 714-2160 • 907 714-2388 Fax 144 North Binkley Street, Soldotna, ( ) ( ) Michele Turner, CIVIC Acting Borough Clerk 7/10/2023 Sent via email: clerk@cityofseward.net Seward City Hall City of Seward RE: Non-Objection of Application Licensee/Applicant The Cookery, LLC Business Name Cookery, The License Type Restaurant/Eating Places - Public Convenience License Location 209 5th Avenue, Seward, AK 99664, City of Seward License No. 5400 Application Type License Renewal Dear Ms. Ballou, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Michele Turner, CMC Acting Borough Clerk cc: stacy@cookeryseward.com; mailto:amco.localgovernmentonly@alaska.gov MT/tw 113 AGENDA STATEMENT Meeting Date: July 24, 2023 From: Jodi Kurtz, Deputy City Clerk Agenda Item: Non-Objection to Renewal of Liquor License BACKGROUND & JUSTIFICATION: The Seward City Council has the opportunity to object the renewal of the following Liquor License for the following business: Business: Mermaid Grotto Cafe Licensee: Zernia Enterprises Inc Type: Restaurant/Eating Place License: 5974 The City of Seward Police Department, Fire Department, Finance Department, and the Kenai Peninsula Borough have no objections to the liquor license for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license renewal, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non-objection to the renewal of liquor license for Mermaid Grotto Cafe, Zernia Enterprises Inc. 95974, Restaurant/Eating Place. 114 MEMORANDUM RECEIVED Date: June 20, 2023 To: John Rymer Finance/Public Utilities JUL 0 6 2023 Naneth Ambrosiani Finance/Leases OFFICE QF THE Chief Alan Nickell Police Department CITY CLERK Chief Clinton Crites Fire Department From: Kris Peck, City Clerk RE: Verifying compliance for the RENEWAL of a liquor license The following business has applied for a liquor license renewal. Please review for compliance with all utilities, lease payments and assessments. Thank you. Name of Business: Mermaid Grotto Cafe Licensee: Zernia Enterprises Inc Type of License: Restaurant/ Eating Place License Number: 5974 Department Status Initials Date Finance/ Utilities vM t ,/,"r/ J�� Gh o1 d i Finance/Leases OPlnit4 P/4 Police Chief AW 2. 4$ PM Fire Chief Deadline for protest: Saturday, August 19, 2023 (60 days from receipt of notification) Last regular council meeting for approval: Monday, August 14, 2023 PLEASE RETURN TO CITY CLERK no later than noon on Tuesday, August S, 2023 115 =�0�I THE STATE Department of Commerce, Community, o and Economic Development ' + 1 1L1 SKA ALCOHOL& MARIJUANA CONTROL OFFICE 550 West 7t"Avenue, Suite 1600 «• = GOVERNOR MIKE DUNLEAVY Anchorage,AK 99501 o, ALAS Main: 907.269.0350 June 20, 2023 City of Seward, Kenai Peninsula Borough Via Email: bballou@citvofseward.net; clerk@citvofseward.net; micheleturner@kpb.us; biratky@kpb.us; tward@kpb.us; mienkins@kpb.us; ivanhoose@kpb.us; clackinsky@kpb.us; maldridge@kpb.us, slopez@kpb.us; Iblankenship@kpb.us; bcarter@kpb.us; g notify assemblyclerk@kpb.us; Re: Notice of 2023/2024 Liquor License Renewal Application License Type: Restaurant/ Eating Place License Number: 1 5974 Licensee: Zernia Enterprises Inc Doing Business As: Mermaid Grotto Cafe We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction.This is the notice required under AS O4.11.480. A local governing body may protest the approval of an application(s) pursuant to AS O4.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, y r� Joan Wilson, Director amco.localgovernmentonly@alaska.gov 116 Office of the Borough Clerk 144 North Binkley Street, Soldotna, Alaska 99669 • (907) 714-2160 • (907) 714-2388 Fax Michele Turner, CIVIC Acting Borough Clerk 6/28/2023 Sent via email: clerk9cityofseward.net Seward City Hall City of Seward RE: Non-Objection of Application Licensee/Applicant Zernia Enterprises, Inc. Business Name Mermaid Grotto Cafe License Type Restaurant/Eating Places - Public Convenience License Location 412 Port Avenue, Seward, AK 99664, City of Seward License No. 5974 Application Type License Renewal Dear Ms. Ballou, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, WA Michele Turner, CIVIC Acting Borough Clerk cc: akmermaidgrottoggmail.com; mailto:amco.localgovernmentonlygalaska.gov MT/tw 117 Resolution 2023-086: Authorizing The City Manager To Enter Into A Lease With Duchess, LLC For Lot 5 Block 6 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Seward Recording District, Third Judicial District, State Of Alaska Documents: • Agenda Statement • Resolution 2023-086 • Attachments: • Duchess LLC Lease Agreement • Plat Map Drawing • Property Location • Res 2023-062 118 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Resolution 2023-086: Authorizing The City Manager To Enter Into A Lease With Duchess,LLC For Lot 5 Block 6 Fourth Of July Creek Subdivision,Seward Marine Industrial Center, Seward Recording District, Third Judicial District, State Of Alaska Background and justification: Duchess,LLC would like to establish a vessel storage and marine related business with a lease on Lot 5 Block 6 Seward Marine Industrial Center. Duchess LLC has been using the SMIC yard for several years and would like to lease a section of land to provide a storage and maintenance shop for their vessels.Duchess,LLC sees great potential at SMIC and the needs of the community. On this new proposed lease site Duchess, LLC can provide more vessel storage/work sites to include equipment storage. Duchess, LLC: a.) Submitted an application with the State of Alaska for a Storm Water Pollution Prevention Plan (SWPPP) as required. b.) Shall comply with all Seward City Code requirements. The City Council has previously determined that land at SMIC is available for lease. INTENT: To approve a long term lease between the City of Seward and Duchess,LLC on Lot 5 Block 6 Fourth of July Creek Subdivision Seward Marine Industrial Center within the industrial zoning District, for boat repair, marine operations and storage. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: (page 116 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, Strategic Plan: :Attract New Industry: Develop an aggressive marketing campaign, which highlights the diverse resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) Other: Certification of Funds Total amount of funds listed in this legislation: $ 18,120.00 This legislation(✓): 0 Creates revenue in the amount of $ $18,120.00 119 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 Fund Balance Information Affected Fund(✓): X General X SMIC Electric Wastewater Boat Harbor Parking F1 Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance $ Finance Director Signature: 5 Attorney Review X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Approve Res. Other: 120 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-086 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Enter Into A Lease With Duchess, LLC For Lot 5 Block 6 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Seward Recording District, Third Judicial District, State Of Alaska WHEREAS, the City is the owner of real property described as Lot 5 Block 6 Fourth of July Creek Subdivision; and WHEREAS, Duchess, LLC has been storing and working on their vessels in the SMIC yard for several years; and WHEREAS, Duchess, LLC would like to lease land to expand their business at SMIC; and WHEREAS, Duchess, LLC sent in a proposal to lease a section of the unsubdivided section of Block 6 Fourth of July Subdivision for a boat repair/storage yard, equipment storage; and WHEREAS, Duchess, LLC has submitted an application to subdivide Block 6 which council approved in Resolution 2023-062 creating Lots 4 and 5 Block 6, Fourth of July Creek Subdivision; and WHEREAS, Duchess,LLC has submitted an application with the State of Alaska for their Storm Water Prevention Pollution Plan as required; and WHEREAS, the Acting City Manager has negotiated a long term lease agreement with Duchess, LLC under the provisions of Seward City Code 7.05.410; and WHEREAS,the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Council has determined that the essential terms and conditions and the method of disposition of the proposed lease with Duchess, LLC for the real property described as the Lot 6 Block 5,Fourth of July Subdivision, located in the City of Seward, is in the public's best interest. 121 CITY OF SEWARD,ALASKA RESOLUTION 2023-086 Section 2. The City Manager is authorized to execute a new lease with Duchess, LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect thirty (30) days after its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July, 2023 THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 122 LEASE AGREEMENT between CITY OF SEWARD, ALA.SKA and Duchess, LLC Effective Date: f 1 123 TABLE OF CONTENTS ARTICLE1 -LEASED LAND.................................................................................................... 1 1.1 Description of Leased Land.................................................................................... 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title................................................... 1 1.3 Property Accepted................................................................................................... 1 1.4 Permits............................................... ....................................................................2 1.5 Platting..................................................................................................... .... ARTICLE 2 -LEASE TERM......................................................................................................3 2.1 Lease Term..............................................................................................................3 ARTICLE 3 -RENTAL RATE...................................................................................................3 3.1 Initial Rental Rate...................................................................................................3 3.2 Rental Adjustments...............................................•..................................................3 3.3 Procedure for Rental Adjustment............................................................................4 3.4 Effect of Late Appraisal by CITY............................................................................4 3.5 Appraisal by LESSEE..............................................................................................4 3.6 Effective Date of Adjusted Rental Rate...................................................................5 3.7 Interim Rental Adjustments.....................................................................................5 3.8 Late Payment Charge..............................................................................................5 ARTICLE4- USE OF LEASED LAND_...................................................................................5 4.1 Use of Leased Land.................................................................................................6 4.2 Obligations of LESSEE...........................................................................................6 4.3 No Preferential Rights to Use Public Facilities......................................................6 4.4 Adequacy of Public Facilities.................................................................................6 4.5 Tariffs and Other Service Fees ...............................................................................6 4.6 Time for Payment of Utilities and Taxes.................................................................6 4.7 Other Uses...............................................................................................................7 ARTICLE 5- UTILITIES AND RIGHTS OF ACCESS..........................................................7 5.1 Utilities....................................................................................................................7 5.2 Third-Party Improvements.....................................................•................................ 7 5.3 Easements................................................................................................................ 8 ARTICLE 6 - CONSTRUCTION BY LESSEE.........................................................................8 6.1 Improvements on Leased Land............................................................................... 8 6.2 City Review of Construction ...................................................................................9 ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS.................................... 10 7.1 Return of Leased Land in Original Condition...................................................... 10 ARTICLE8 -FORCE MAJEURE ........................................................................................... 10 ARTICLE 9 -LESSEE'S ACTS OF DEFAULT..................................................................... 10 ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE .................................................. 11 ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE........................ 13 11.1 Real Property Improvements................................................................................. 13 11.2 Personal Property................................................................................................. 13 i 124 ARTICLE 12 -ASSIGNMENT OR SUBLEASE.................................. .............. 13 12.1 Assignment of Lease or Subleasing....................................................................... 13 12.2 Assignment of Lease for Security.......................................................................... 13 12.3 Assignment to Affiliate.......................................................................................... 14 ARTICLE 13 -LESSEE'S DUTY TO DEFENDANDEMNIFY............................................ 14 ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY.................................................. 14 ARTICLE 15 -INSURANCE ...................................................... ...................... 14 15.1 Minimum Insurance Requirements ....................................................................... 14 15.2 Subrogation Rights Waived...........................................................................I....... 15 ARTICLE 16 - CONDEMNATION.......................................................................................... 15 ARTICLE 17 -ARBITRATION ............................................................................................... 16 17.1 Arbitration............... ............................................................................................. 16 ARTICLE 18 - MAINTENANCE AND REPAIRS................................................................. 17 18.1 Normal Maintenance............................................................... ................ 17 18.2 Safety Issues.......................................................................................................... 17 18.3 Cost of Repairs................................................................................. .............. 18 ARTICLE 19 -ENVIRONMENTAL CONCERNS................................................................ 18 19.1 Hazardous Materials............................................................................................. 18 19.2 Permits and Reporting..........................................................................•...............20 ARTICLE 20 -ESTOPPEL CERTIFICATES........................................................................21 ARTICLE 21 - CONDITIONS AND COVENANTS...............................................................21 ARTICLE 22 -NO WAIVER OF BREACH............................................................................21 ARTICLE 23 -TIME OF THE ESSENCE..............................................................................21 ARTICLE 24- COMPUTATION OF TIME...........................................................................21 ARTICLE 25- SUCCESSORS IN INTEREST.......................................................................22 ARTICLE 26 -ENTIRE AGREEMENT.........................................•........................................22 ARTICLE 27- GOVERNING LAW ........................................................................................22 ARTICLE 28-PARTIAL INVALIDITY.................................................................................22 ARTICLE 29- RELATIONSHIP OF PARTIES.....................................................................22 ARTICLE 30 -INTERPRETATION........................................................................................22 ARTICLE 31 - CAPTIONS .................................................................. .............22 ........................ ARTICLE 32 -AMENDMENT.................................................................................................23 ARTICLE 33 -NOTICES...................................................................................... ...................23 ARTICLE 34 -FIRE PROTECTION FOR LEASED LAND IN SMIC...............................23 EXHIBIT A ii 125 LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD(the"CITY"),a municipal corporation located in the Kenai Peninsula Borough,State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and Duchess, LLC (the "LESSEE"),an Alaska limited liability company whose mailing address is P.O.Box 1410,Sterling, Alaska 99672. WHEREAS, LESSEE has indicated its desire to lease the property known as T 1S R 1E SEC 18 SEWARD MERIDIAN SW 2001002 FOURTH OF JUl6 V 'vREEK SUBDIVISION SEWARD MARINE INDUSTRIAL CENTER BLOCK 5 LOT 6.as shown on PIat k23-_ Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 87,120 square feet, more or less; and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below) to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE`s operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained,the parties hereto agree as follows: ARTICLE 1 -LEASED LAND 1.1 Description ofLeasedLand. The Leased Land is located in the City of Seward,Alaska. The Leased Land is described as follows: T 1S R 1E SEC 18 Seward Meridian SW 2001002 Fourth of July Creek Subdivision Seward Marine Industrial Center Block 6 lot 5, as shown on Plata N-3 - 015�Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 87,120 square feet,more or less (the "Leased Land"). The Leased Land is also depicted on the attached Exhibit A,which is incorporated herein by reference. L2 Covenant of Quiet Enjoyment,- Warranty of Title. Subject to the encumbrances as of the date hereof,any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Property Accepted"As-is." LESSEE acknowledges that it has inspected the Leased Land and accepts the same"as-is"and without reliance on any expressed or implied representations or 1 126 warranties of CITY(other than the representations in Section 1.2 hereof),or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.4 Permits. LESSEE,at its sole cost,shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time,upon request of LESSEE, execute such documents, petitions, applications, and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits,zoning and re-zoning,tentative and final tract approval,or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However,nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency,department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, roles, or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation(e.g.,right-of-way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation_ 1.S Platting. If LESSEE requests a replat of the Leased Land,CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. In the event CITY elects to replat, LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. 1.6 Development of Leased Land LESSEE shall continue operate a vessel storage, equipment storage, maintenance shop and marine related activities, and uses necessary and incidental thereto,through the term of the lease. LESSEE understands that construction and operations of its marine-related business is a major consideration for the CITY's agreement to lease the Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the Leased Land without the consent of the CITY. a) CITY may withhold its consent as to any proposed business or activity which, in CITY's sole discretion, is not desirable or compatible with the CITY's operation of the Seward Marine Industrial Center. 2 127 b) In accordance with the provisions of Article 12, no assignment or sublease shall be permitted, unless approved in writing by CITY. Any sublease shall be expressly subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY may elect to not approve any proposed assignment or sublease that might result in a business or activity that, in the CITY's sole discretion, is undesirable and/or incompatible with the CITY's Seward Marine Industrial Center. ARTICLE 2 - LEASE TERM Lease Term. The term of this LEASE(the"Lease Term")shall be in accordance with CITY's authorization in Resolution No. 2023- (the "Resolution"). The Lease Term shall commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE(the"Effective Date"). The Lease Term shall run for approximately 30 years from the Effective Date, ending at midnight on [ I. LESSEE shall have the right to extend the term of this LEASE for two additional five year periods, provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the the <zuw.vnt lease term; b) LESSEE is not in default under any v: or provision of this LEASE; and c) LESSEE shall exercise its options to extend by `ending written notice in accordance with the provisions of Art icle 33 of this L�1ASE.1 ARTICLE 3 -RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2025, the annual rental rate for the Leased Land shall be set at $18,120. Rent shall be payable quarterly in advance upon the Effective Date of this Lease(prorated for the balance of the current quarter)and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual X_;.ially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1,2025,and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value")of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Taand unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. 3 128 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska.certified MAI appraiser(Member,Appraisal Institute),who shall determine the"Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY(including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the,adjusted annual rental rate until the next Rental Adjustment Date,unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case,LESSEE shall give written notice to CITY of its objection within thirty(30)days of receipt of the appraiser's report,and LESSEE shall then engage an independent State of Alaska certified MAI appraiser(Member,Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent(20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If,for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However,any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If,for any particular Rental Adjustment Date,CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser(Member,Appraisal Institute)at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However,LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty(30)days of receipt of the appraiser's report,and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE's appraisal by no more than twenty 4 129 percent(20%),then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than twenty percent(20%),then,unless CITY and LESSEE agree on a rate themselves,the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety(90)days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates,the annual rental payment shall be increased beginning July 1, 2024 and on July I of every year thereafter (each on "Interim Rental Adjustment Date") in an amount that reflects the increase,if any,in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area,All Items 1967=100("CPI"),as published by the United States Department of Labor,Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period,and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion, to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less,plus a flat monthly late fee of$2.50,or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 5 130 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for vessel, equipment storage maintenance shop and marine related activities. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall operate a vessel storage, boat maintenance shop and other marine related activities on the Leased Land. e) Any changes to this site require prior CITY approval, through the City Manager. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs,procedures,rules,and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended,and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy ofPuhlic Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE,and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations, and scheduled fees from time to time, even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements 6 131 thereon, if any,before such obligations become delinquent;provided that LESSEE may,in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space,including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council_ ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities,with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building,mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings,equipment,direct labor,and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land,it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver,or j oin in execution and delivery of,such documents as are appropriate, necessary,or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions, and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters 7 132 (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject,however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section,CITY shall be without expense therefor,and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the properly of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands,it may be necessary,desirable,or required that street,railroad,water,sewer,drainage, gas, power line, and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other,join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities, and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 -CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel,reconstruct,rebuild,build,and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations, or improvements, shall he borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. 8 133 c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans(based on a recent survey)for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of-ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2)or Alaska limited liability company in which LESSEE maintains a substantial membership interest,a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). f) CITY may,as contemplated by Alaska Statutes,give notice of non-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state,and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building, mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way_ LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land,easements,rights-of-way,or setback requirements. LESSEE shall obtain the 9 134 usual and customary performance guarantees from its contractors,and CITY shall be named as an additional insured. ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subj ect to the provisions of Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal,non-abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE S -FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war,the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 -LESSEE'S ACTS OF DEFAULT Each of the following shall be a"LESSEE Act of Default" under this LEASE and the terms "acts of default"and"default"shall mean,whenever they are used in this LEASE,any one or more of the following events: 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty(20)days from the due date thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty(30) days after written notice specifying such failure,requesting that it be remedied,and stating that it is a notice of default,has been given to LESSEE by CITY;provided,however,that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.4 The making by LESSEE of an assignment for the benefit of creditors,the filing of a petition in bankruptcy by LESSEE,the adjudication of LESSEE as insolvent or bankrupt,the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property;or the commencement of any proceeding relating to LESSEE under any bankruptcy,insolvency,reorganization,arrangement,or readjustment of debt law 10 135 or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska,or any conditions of any permits issued by agencies of the City of Seward,the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land,pursuant to the regulations of such agencies,for a period of sixty(60)days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however,if such violation be such that it cannot be corrected within the applicable period,it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued;provided,however,that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage,interruption,or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law, or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to We of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and,except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process,all of which LESSEE expressly waives. 10.3 In addition to the above, CITY may: 11 136 a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not Limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises,reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY,CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 12 137 ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the properly of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12-ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore,LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land,by deed of trust or other security instrument,to an institutional lender("Lender")for development of or operations on the Leased Land,provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing,with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right(without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE)to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money,shall undertake within thirty(30)days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE 13 138 or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee,purchaser,or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 -LESSEE'S DUTY TO DEFENDANDEMNIFY LESSEE shall defend,indemnify,and hold harmless CITY,its officials,employees,agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage,death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence,LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 - CITY'S DUTY TO DEFENDIINDEMNIFY CITY shall defend,indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death, and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15 -INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain,at LESSEE's sole cost and expense,comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS($2,000,000)for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury,bodily injury, and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000) is also required. LESSEE shall obtain owned and non-owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS($1,000,000)per occurrence combined single limit for bodily injury and property damage. 14 139 LESSEE shall also maintain workers'compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land,increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty(30)days'notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska and acceptable to CITY (Best's Rating B+or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY,on forms approved by CITY,certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense,additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. LESSEE agrees that its policies of insurance will include a waiver of subrogation clause or endorsement releasing CITY, its elected and appointed officials,employees and volunteers,and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone claiming through or under LESSEE by way of subrogation or otherwise,for any loss of any kind(including damage to property caused by fire or any other casualty),even if such loss shall have been caused by the fault or negligence of the CITY,its elected or appointed officials,employees or volunteers,or others working on behalf of the CITY. This provision shall be applicable and in full force and effect with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and LESSEE's policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers, and others working on behalf of CITY) during the time of LESSEE'-, occupancy or use. ARTICLE 16 - CONDEMNATION 15 140 If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity,CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority;provided,that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part ofthe Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen(15)days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts, and liens to which the Leased Land is subject. If at the time of such partial taking for public use,LESSEE determines that such partial taping will not prevent it from continuing to operate,then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17-ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties,may be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43,300 et. se .), as it now exists or may hereafter be amended from time to time,and judgment on the award may be entered in any Superior Court in the State of Alaska. Either party may submit to the other party a request for arbitration and the party receiving a request shall have twenty(20)days to consent,in writing,to the use of arbitration to resolve the dispute. Failure of either party to consent will preclude the use of arbitration for that dispute. The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation,nor any claim based on conduct that is a felony crime in the State of Alaska. 16 141 c) Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who(a)has not less than five(5)years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party,commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage,Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party,at least thirty (30) days in advance of such hearing, (i) the names, addresses, phone numbers, and email addresses for all witnesses who may testify at the hearing; and (ii) all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18 - MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof,if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE,in as good condition as received or constructed by LESSEE, subject to normal,non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land,exclusive of improvements placed thereon by LESSEE, in order to prevent erosion,mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading,filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in vr1`iting, to share such expense and risk. LESSEE shall maintain in first class condition at atl times all fire,pollution, and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty(30)days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. 17 142 If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk,unnecessary potential hazards, or a risk to the public interest(as distinguished from a business risk),or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs,then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations,if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost,risk, and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary,the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19 -ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY.Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including,without limitation,attorney's fees,court costs,litigation expenses,and consultant and expert fees)arising prior to,during,and after the term of this LEASE,and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest,or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or 18 143 intentional misconduct. This release includes,without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal, or restoration mandated by a federal,state,or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon,kept, or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored, and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) LESSEE shall not discharge,leak,or emit,or permit to be discharged,leaked, or emitted, any material into the atmosphere, ground, ground water, sewer system, or any body of water,if such material (as reasonably determined by the City,or any governmental authority)does or may,pollute or contaminate the same,or may adversely affect the(a)health,welfare,or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition,use, or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage, and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from and against any claims,demands,penalties,fines,judgments,liabilities,settlements, damages, costs, or expenses(including,without limitation, attorney,consultant and expert fees,court costs,and litigation expenses)of whatever kind or nature,known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal,release,or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation,buildings,personal property, persons, animals, or otherwise; ii) Any personal injury(including wrongful death)or property damage(real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; 19 144 iii) Any lawsuit brought or threatened, settlement reached,or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d)shall apply only if the acts giving rise to the claims,demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses(1)occur prior to or during the term of this LEASE;and(2)arise,in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees,contractors,subcontractors,authorized representatives,subtenants, or any other persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes,LESSEE shall be deemed the operator of any facility on the Leased Land. f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic,ignitable,reactive,or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste,hazardous waste,extremely hazardous waste, or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion,for the purposes of this LEASE,the term Hazardous Material includes,without limitation,petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material, and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE,Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgements, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing,Alaska Statutes Title 46,the Resource Conservation and Recovery Act of 1976,the Comprehensive Environmental Response,Compensation and Liability Act of 1980,the Clean Water Act,and the Superfand Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal,state,or local government or 20 145 agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City- Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits,in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice,including copies of all reports between LESSEE and any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 -ESTOPPEL CERTIFICATES Either parry shall at any time and from time to time upon not less than ten (10) days'prior written request by the other party,execute,acknowledge,and deliver to such party,or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in fall force and effect as amended and stating the amendment or amendments),that there are no defaults existing(or,if there is any claimed default, stating the nature and extent thereof), and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 21 - CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants,"as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22 -NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term,covenant,or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant, and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 - TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 - COMPUTATION OF TIME 21 146 The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last,unless the last day is a Saturday,Sunday,or a holiday, and then it is also excluded. ARTICLE 25- SUCCESSORS IN INTEREST Each and all of the terms,covenants,and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 -ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement, or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 27- GOVERNING LAW This LEASE shall be governed by, construed,and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including,without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 28 -PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void,or unenforceable,the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29 -RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE,nor any acts of the parties,shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30 -INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 -CAPTIONS 22 147 Captions of the articles,paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 -NOTICES All notices,demands,or requests from one parry to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either parry may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands, and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Duchess,LLC P.O. Box 1410 Sterling, Alaska 99672 Each party shall have the right,from time to time,to designate a different address by notice given in conformity with this Article. ARTICLE 34 - FIRE PROTECTION FOR LEASED LAND IN SNUC LESSEE acknowledges that the CITY OF SEWARD lacks the personnel and resources to provide onsite fire protection in the Seward Marine Industrial Center,and emergency response time may be longer than for other areas in Seward. LESSEE accepts the risks inherent in conducting its operations in this area and willingly assumes,at its sole cost and risk,the obligation to provide fire protection to its operations on Leased Land in SMIC, and fire prevention to industry standards to minimize risks to adjacent facilities and nearby operations. IN WITNESS WHEREOF,the parties hereto have set their hands and seals the dates herein set forth. 23 148 CITY: LESSEE: CITY OF SEWARD ` �---- i Norm Regis, Acting City Manager z- 6,.ICn Smith, CEO Date: Date: I 3-3 ATTEST: Kris Peck City Clerk STATE OF ALASKA } } ss. THIRD JUDICIAL DISTRICT } The foregoing instrument was acknowledged before me this day of J u N 6 , 2023,by Norm Regis,Acting City Manager of the City of Seward, Alaska, on behalf of the City. Notary P lic in and for Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this 3 day of J c--�/v� ,2023, by Kristen Smith who executed the foregoing document on behalf of Duchess LLC as of the company. IL11H U1"§1/�j = ` OlY` Notary Public in and for Alaska My Commission Expires: 9 -' ov 24 149 Z o'c c o W w Y Y H Or° Q - x U lal i m viz �e �'om >w Q u ii ia,di �x,Id „� wl~i1W o�c9§«g ca Uzi„o„ m3� -0 8 v O� � 4 N a .°ez e v E ?� _ -°^ wp.o W=Qa `Y3y jW Q �i ^Let O T°° U C E uoWo= oN N$e„§off a U » L� o`c•• r -a L - N�=aoF E° m a O t Q LL cL w 3 �a o a z a r M Z 7 o � r d � a � m Z - a m :Z Q E o TRACT E-1 N i- SPRING CREEK CORRECTIONAL FACILTfY SITE REPIAT NO 1 O_' CL:E U) $E 2. pm ------------------------- v> Elf LJ `m DELPHIN STREET a 9 TRACT A3 w t rig —— ——1�7 —�Ir' 3: 2 III 's"' _ E w �E a I� B�P^ 44 In m ( a„ I Om Or � 08 la l ^ Ilp aIIII s: — -- II " II s _ a LLt w OLGA STREET a >i m TRACT A3 °E— n = a o __ _ _ _ _ _ __________ oC°uo I rn�I r ------- E. I � II U I I III O _ o E'> w m I. I L——===== JJ m $ I r-_--- — — wwoE�z e r;_ U - Q _ Li i ° 9 r= aoza. a - w Ea U a cn'g e Y a e _•e:�: Ee r e E a_'E 0 a Fa4 y L`'I "��� Q` ° S wDtz°x€ a N_'�E.c �a E m o- 14 JELLISON AVE. 1-1771Z"I rw MUSTANG AVE. " ' _ fi• MORRIS AVE.. iWRTV - a o _ Q sLa ff rf . ; Subdivide the Unsubdivided remainder 110 Olga Street of Block 6, Fourth of July Creek Subdivision SMIC Dr-n 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 151 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 CREED. 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 cif Sc� and for review and recommendation to the Kenai Peninsula Borough; and WHEREAS,on April 4, .1023,the Planning and Li}nirI.T C.'oniniission approved Resolution 2023-006 recommending City Council approve the Fourtlh 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 01-a 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 (1); 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 re.c{uircs a trrc lw drant to be installed if a building is constructed within a distance greater than 500 feet Fi-oni an eristinc, Fire hydrant; and WHEREAS, I.ot 5 is the only parcel that will be currently leased, and Duchess LLC has been informed o f tliesc reel u i rcinents; and WHEREAS, the Cite of Seward leas plains to extend the wafer and sewer lines to these parcels and install Fire hydrants as &N-elopment dein inds; and WHEREAS, at] conditions reyuirucl by ard Cite Code 1(-).()1.015, Conditions to plat approval. were met: the property owners N%Rhin - 00 teet cif the rL cquestcd 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 152 CITY OF SEWARD, ALASKA RESOLUTION 2023-062 aj)prm c my platting action of City owned land prior to submitting; to the Kenai Peninsula E3ok'L["11. NOW,THEREFORE,BE IT RESOLVED BY TI-I E CITY COt`NCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council herchy recommends that. in accordance with Seward City Code Secti«u 16.01.015 (13). the Kenai I'CIIIIIss.l]a Bore m-h apprm c the suhinittal of the Replat of Fourth of Jul` C'reck SLII)Jl�isicin. Seward Man-ne hidu trial C cntea f SV1lC."1, Unsuhdivided. Remainderoi'Rlock Lets 4 &' S. Block 6. FOL11-tit Get .1LIN [reek SL1bd1Vtston SMIC, Ducllcss Rcplat, Section 2. This resolutior dull iakc ctt'cct Imm(2di:ack upon udopti+ n. PASSED AND APPROVED h} tht: City Council of the Cit. t,f'Seward \Ia,,ka. this 22", clay of?Flay, 2023. THE CITY OF SEWARD, ALASKA re Sue McClure, ,'Mayor AYES: 0scn-a. [)Moss. Calhoon \VclIS. 1111C11. Ran] yell. LIcC"IL]1e NOES: None ABSENT: None ABSTAIN: None ATTEST. Krlti Peck ! ti+s�+III Itells, S E Deputy City Clerk �`'-�, O........ �'� �'• 4 r (City Seal) c+ i SEAS" s E oF, l� 153 Resolution 2023-087: Authorizing The Maintenance And Operating Agreement With JAG Alaska Inc. For An Additional Five Year Period For The Shiplift And Dry-Dock Area Documents: • Agenda Statement • Resolution 2023-087 • Attachments: • JAG M&O Agreement • Res 2014-044 • Res 2014-050 • Res 2018-064 154 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council Through: Norm Regis,Acting City Manager Subject: Resolution 2023-087: Authorizing The Maintenance And Operating Agreement With JAG Alaska Inc.For An Additional Five Year Period For The Shiplift And Dry-Dock Area Background and justification: The City of Seward has leased land to and had a Maintenance and Operating Agreement with Seward Ship's Drydock, Inc. since 1988. In 2014,both the ground lease and Maintenance and Operating Agreement were amended and assigned to Vigor Alaska-Seward LLC through the passage of Resolution 2014-050. In 2018,both the ground lease and the Maintenance and Operating Agreement were assigned to JAG Alaska Inc.through the passage of Resolution 2018-064. In order for the lessee to continue operation of the Seward dry-dock the City of Seward requires JAG Alaska,to enter into a new Maintenance and Operations Agreement every five (5)years. The Maintenance and Operating agreement needs to be approved prior to July 23, 2023. Attached is the Maintenance and Operating Agreement in substantial form to JAG Alaska. 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: S 0 This legislation(✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund(✓): General 71 SMIC Electric Wastewater 155 Boat Harbor Parking water Healthcare Motor Pool PI Other Note:amounts are unaudited Fund Balance/Net position restricted $ Fund Balance/Net position—unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: No fiscal impact Attorney Review X Yes Attorney Signature: Not applicable Comments: The Start date is from Council approval, end date would be 5 years from council approval Administration Recommendation ✓ Approve Res. Other: Approve the M&O Agreement with JAG Alaska,Inc for an additional five years 156 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-087 A Resolution Of The City Council Of The City Of Seward,Alaska,Authorizing The Maintenance And Operating Agreement With Jag Alaska Inc.For An Additional Five Year Period For The Shiplift And Dry-Dock Area WHEREAS, the City (Lessor) and Seward Ship's Dry Dock, Inc. (Lessee)entered into the current ground lease and Maintenance and Operating agreement in 1995; and WHEREAS, City Council authorized the amendment and assignment of the Ground Lease to Vigor Alaska-Seward LLC with the passage of Resolution 2014-044 on May 12,2014; and WHEREAS, City Council authorized the amendment and assignment of the M&O agreement to Vigor Alaska-Seward LLC with the passage of Resolution2014-050on May 27, 2014; and WHEREAS, City Council authorized the assignment of theM&O agreement to JAG Alaska Inc. withthe passage of Resolution 2018-064 on July 23, 2018; and WHEREAS,the current M&O Agreement expires on July 23, 2023; and WHEREAS,the City requires the Assignor to enter into a Maintenance and Operating agreement for the operation of the City's shiplift on the leased parcels; and WHEREAS,the agreement is attached and will go into effect immediately upon approval of this resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized and directed to sign, on behalf of the City of Seward, the Maintenance and Operating Agreement, in the form substantially presented at this meeting, with Jag Alaska. Section 2. This resolution shall take effect immediately after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July, 2023. 157 CITY OF SEWARD,ALASKA RESOLUTION 2023-087 THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 158 MAINTENANCE AND OPERATING AGREEMENT between CITY OF SEWARD, ALASKA and JAG ALASKA, INC. Dated as of April 1, 2023 159 TABLE OF CONTENTS PAGE ARTICLE 1 Definitions.......................................................................2 ARTICLE 2 General Provisions .........................................................6 Section 2.01 - Agreement Term ...................................................................6 Section 2.02 - Specific Use Restrictions.......................................................6 Section 2.03 - Environmental Matters ..........................................................6 Section 2.04 - Protection Against Liens........................................................8 Section 2.05 - No Preferential Rights to Use Port Facilities..........................9 Section 2.06 - Security for Shiplift Premises.................................................9 Section 2.07 - Leasing and Use of Managed Parcel ....................................9 Section 2.08 - Inspection by City..................................................................9 ARTICLE 3 Operation and Maintenance of Shiplift Facility..............10 Section 3.01 - Revenue..............................................................................10 Section 3.02 - Annual Facility Costs...........................................................10 Section 3.03 - Operation of Shiplift Facility.................................................10 Section 3.04 - Maintenance of Accounts; Statements; ...............................11 Section 3.05 - Operating Plan ....................................................................11 Section 3.06 - Inventory .............................................................................11 Section 3.07 - Rates and Charges .............................................................11 ARTICLE 4 Indemnity; Insurance ....................................................12 Section 4.01 - Operator's Duty to Indemnify...............................................12 Section 4.02 - Insurance Requirements .....................................................12 ARTICLE 5 Assignment ment...................................................................14 Section 5.01 - Assignment of Agreement...................................................14 Section 5.02 - Assignment .........................................................................14 ARTICLE 6 Default; Remedies....................................................... 14 Section 6.01 - Events of Default.................................................................14 Section 6.02 - Remedies for Default by Operator.......................................15 Section 6.03 - No Waiver of Breach ...........................................................15 Section 6.04 - Cure by City ........................................................................15 ARTICLE 7 Miscellaneous .............................................................15 Section7.01 - Time ....................................................................................16 Section 7.02 - Entire Agreement ................................................................16 City of Seward and JAG Alaska, Inc. i Maintenance and Operating Agreement 160 Section 7.03 - Relationship of Parties ........................................................16 Section 7.04 - Notices................................................................................16 Section 7.05 - Binding Effect......................................................................16 Section 7.06 - Severability..........................................................................16 Section 7.07 - Amendments.......................................................................16 Section 7.08 - Execution in Counterparts ...................................................17 Section 7.09 - Applicable Law; Jurisdiction ................................................17 Section 7.10 - Captions..............................................................................17 Exhibit A - Description of SMIC Exhibit B - Maintenance Tasks City of Seward and JAG Alaska, Inc. II Maintenance and Operating Agreement 161 AMENDED AND RESTATED MAINTENANCE AND OPERATING AGREEMENT This Maintenance and Operating Agreement (this "Agreement") is made as of April 1, 2023 between the City of Seward, Alaska, an Alaska municipal corporation ("City"), whose address is P.O. Box 167, Seward, Alaska 99664, and JAG Alaska, Inc. ("Operator"), whose address is P.O. Box 969, Seward, Alaska 99664. WHEREAS, since 1980 City has provided for the development of the Seward Marine Industrial Center (the "SMIC"), and City expended over $40 million in construction of improvements to the area, including a Syncrolift Shiplift System, Ship Transfer System and related rail systems (the "Shiplift Facility"); and WHEREAS, City and Operator's predecessor in interest Seward Ship's Drydock, Inc ("SSD") were Lessor and Lessee, respectively, under a lease agreement effective as of September 22, 1988, as amended (the "Prior Lease"), a memorandum of which was recorded at Book 53, Page 255, Seward Recording District, Third Judicial District, State of Alaska, under which SSD leased from City certain real property located in the SMIC, as described in the Prior Lease to operate a vessel repair and construction facility; and WHEREAS, the continued maintenance and operation of the Shiplift Facility is important to the profitable operation of Operator's vessel repair and construction business on the Premises; and WHEREAS, City and SSD entered into that certain Maintenance and Operating Agreement dated April 25, 1995 ("Initial Agreement") to assume the expense of maintaining and operating the Shiplift Facility; and WHEREAS, following expiration of the Initial Agreement the parties entered into a Maintenance and Operating Agreement dated March 30, 2000, ("M&O Agreement") which was amended and extended nine times; and WHEREAS, on June 11, 2014 the M&O agreement was amended and assigned to Vigor Alaska Seward LLC through resolution 2014-050; and WHEREAS, on July 23, 2018 the M&O agreement was amended and assigned to JAG Alaska, Inc. through Resolution 2018-064; and WHEREAS, the term of the M&O Agreement expires in July of 2023; and City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 1 162 WHEREAS, the parties have determined that it is in their respective interests to continue their relationship for the maintenance and operation of the Shiplift Facility by entering into this Agreement, and the Operator agrees to assume the continued expense of maintaining and operating the Shiplift Facility; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: ARTICLE 1 Definitions The following terms will have the meanings indicated below unless the context clearly requires otherwise: "Agreement" means this Maintenance and Operating Agreement, as amended from time to time. "Agreement Term" means the duration of this Agreement as set forth in Section 2.01 . "Annual Facility Costs" means annual costs of the Shiplift Facility as described in Section 3.02. "Auditor" means an independent certified public accountant or firm of certified public accountants engaged by the City. "Baseline Audit' shall mean the Phase II investigations attached as ANNEX B to the 2018 M&O agreement. The Baseline Audits establishes the baseline conditions of the Shiplift Premises for purposes of determining environmental liabilities addressed in this agreement. "City" means the City of Seward, Alaska. "Cleanup" shall mean any planning, investigation, remediation, removal, response actions, or disposal, as those terms are defined in the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. § 9601, et. seq. ("CERCLA"), AS Title 46, and analogous state statutes, associated with including land, groundwater soil vapor, marine sediments or any other environmental medium or place where Hazardous Substances may come to be located. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 2 163 "Environmental Laws" means all local, state and federal laws, ordinances, regulations and orders related to environmental protection; the use, storage, generation, production, treatment, emission, discharge, remediation, removal, disposal or transport of any Hazardous Substance; or any other environmental matter, including without limitation any of the following statutes: (i) Federal Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Sections 6901-6991 K; (ii) Federal Comprehensive Environmental Response Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601-9675; (iii) Federal Clean Air Act, 42 U.S.C. Sections 7401-7642; (iv) Federal Hazardous Material Transportation Control Act of 1970, as amended, 49 U.S.C. Sections 1801-1812; (v) Federal Clean Water Act of 1977, as amended, 33 U.S.C. Sections 1251-1387; (vi) Federal Insecticide, Fungicide, and Rodenticide Act, as amended, 7 U.S.C. Sections 2601-2671; (vii) Federal Toxic Substances Control Act, 15 U.S.C. Sections 2601-2671; (viii) Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f-300i-26; and (ix) Title 46 of the Alaska Statutes. "Event of Default" means any of the events described in Section 6.01 . "Fiscal Year" means the calendar year. "Hazardous Substances" means any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic material, a hazardous, toxic or radioactive substance, or other similar term, by any Environmental Laws, and shall include any such substance or material as may hereafter become defined or designated as hazardous or toxic material by any Environmental Laws. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 3 164 "Lease" means the ground lease of the Premises between City and SSD, dated as of April 25, 1995, as amended and assigned from time to time. "Maintenance and Operation Costs" means the actual and necessary costs of maintaining and operating the Shiplift Facility, including without limitation the reasonable expenses of management, repair and other expenses necessary to maintain the Shiplift Facility in good repair and working order, reasonable amounts for administration, overhead, insurance, utilities, consulting and technical services, employer costs (including pension costs), taxes (but not payments in lieu of taxes), charges payable pursuant to any licenses, permits or other authorizations of any agency or regulatory body having lawful jurisdiction, and other similar costs, but excluding depreciation (or reserves therefor), amortization of intangibles or other bookkeeping entries of a similar nature, and the costs of capital additions, replacements, betterments, extensions or improvements to the Shiplift Facility. "Managed Parcel" means the area within the SMIC designated as such on Exhibit A hereto, which is south of the fence on the northern boundary of the Premises "Maintenance" means all of the repair, maintenance and replacement of parts and equipment for the Shiplift Facility as further described in Article 3 and Exhibit D. "Operator" means JAG Alaska Inc.an Alaska corporation, its successors and assigns. "Port Facilities" means all public port facilities owned or operated by City from time to time, including without limitation the Shiplift Facility. "Pre-existing Contamination" shall mean the following: Any Hazardous Substances on or in the Shiplift Premises (including land, groundwater soil vapor, marine sediments or any other environmental medium or place where Hazardous Substances may come to be located) which is disclosed in, arising out of or related to contamination revealed in the Baseline Audit; or Any Hazardous Substances arising from or related to operations at the Shiplift Premises prior to the effective date of that certain Assignment, Assumption and Amendment of Agreement, dated as of June 10, 2014, by and among Seward Ship's Drydock, Inc., an Alaska corporation, Vigor Alaska - Seward LLC, an Alaska limited liability company, and the City of Seward, Alaska, an Alaska municipal corporation (the "Assignment"). "Premises" means the land plus any improvements described as such in the Lease. "Required by Law' shall mean any actions or obligations associated with the Shiplift Premises or prior operations at the Shiplift Premises which are (i) required by any regulatory agency under any and all applicable federal, state or local statutes, City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 4 165 regulations or ordinances, now or hereinafter in effect, relating to pollution or environmental protection; or (ii) required by any final and non-appealable court order in an action brought by a third party for enforcement of such laws; or (iii) required pursuant to a Cleanup plan agreed to by City or Operator to carry out Cleanup obligations imposed under such laws. "Revenue" means all of the following fees or charges for use of the Shiplift Facility: lift fees; receipts for labor to operate the Syncrolift facility in raising or lowering a vessel; uplands day lay charges; and moorage and wharfage on the Shiplift Facility dock. "SMIC" means the Seward Marine Industrial Center, consisting of the area shown on the site map in Exhibit B hereto. "Shiplift Facility" means the Syncrolift Shiplift System in the SMIC, including the mechanical shiplift and all associated equipment, all upland rails not located on the Premises or other leased property, the side transfer cradle assembly, the shiplift dock, and 33 connected cofferdam cells comprising the south breakwater. "Shiplift Premises" means the Shiplift Facility and the Managed Parcel. "Subsequent Contamination" shall mean any Hazardous Substances on or in the Shiplift Premises that are not Pre-existing Contamination, unless otherwise demonstrated by Operator. Operator may demonstrate that Hazardous Substances on or in the Premises not disclosed in the Baseline Audit are not Subsequent Contamination by submitting to City credible and mutually acceptable evidence through laboratory data, operational records, historical documents such as aerial photographs or other material proof, that such contamination existed prior to the date of the Baseline Audit. Within thirty (30) days of the delivery of such evidence to City, City shall deliver written notice (a "Dispute Notice") to Operator indicating its disagreement with such findings. The failure to timely deliver a Dispute Notice shall constitute an acceptance by City of Operator's findings. Following the delivery of a Dispute Notice, the following process shall be utilized to resolve such dispute: a. Within thirty (30) days of the delivery of the Dispute Notice, City and Operator shall select a mutually agreeable third-party environmental consulting or engineering firm (the "Referee") to evaluate the Hazardous Substances so in dispute (it being understood that in making such evaluation, the Referee shall be functioning as an expert and not as an arbitrator). The Referee shall determine whether the Hazardous Substances so discovered constitute Pre-existing Contamination or Subsequent Contamination. If City or Operator disagrees with the determination of the Referee, then it shall so notify the other party in writing within five (5) days of the receipt of the Referee's final report. The failure to timely deliver such notice shall constitute an acceptance by such party of the Referee's City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 5 166 findings. In the event either party timely submits such notice, the provisions of Article 12 of the Lease shall apply to the resolution of such dispute. ARTICLE 2 General Provisions Section 2.01 - Agreement Term. The Agreement Term commences , and unless sooner terminated as provided herein ends at the earlier of (i) date of expiration or termination of the Lease term, or (ii) June 10, 2028. Section 2.02 - Specific Use Restrictions. Operator shall not commit any waste of the Shiplift Premises. Operator shall use, operate and maintain the Shiplift Facility in accordance with all laws and regulations governing such use, operation and maintenance. Operator will not use the Shiplift Premises in any manner which would constitute a public nuisance. Section 2.03 - Environmental Matters. Operator covenants and agrees as follows: (a) Operator will not cause or permit the Premises to be used to generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce or process any Hazardous Substance, except in compliance with all applicable Environmental Laws, nor shall Operator cause or permit, as a result of any intentional or unintentional act or omission on the part of the Operator or any other user or occupant of the Premises, the release of any Hazardous Substance onto the Shiplift Premises. (b) Operator will at all times in all respects use its best efforts to comply, and will use its best efforts to cause all other users of the Shiplift Premises to comply, with all Environmental Laws, including without limitation undertaking the following specific actions: (i) Operator will, at its own expense, procure, maintain in effect and comply with all conditions of any and all permits, licenses and other governmental and regulatory approvals required by all Environmental Laws, including without limitation permits required for discharge of (appropriately treated) Hazardous Substances into the ambient air or any sanitary sewers servicing the Shiplift Premises; and (ii) except as discharged into the ambient air or a sanitary sewer in strict compliance with all applicable Environ- mental Laws, any and all Hazardous Substances to be treated and/or disposed of by the Operator will be removed and transported solely by duly licensed transporters to a duly licensed treatment and/or disposal facility for final treatment and/or disposal (except when applicable Environmental Laws permit on-site treatment or disposal in a sanitary landfill). (c) Reserved. (d) Operator shall maintain a complete file, which may be inspected at any reasonable time by City containing copies of all correspondence, permits or other City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 6 167 material between Operator and any federal, state or other governmental authority related to Hazardous Substances at the Shiplift Premises. (e) Operator shall give City within 24 hours (i) written notice and a copy of any notice or correspondence it receives from any federal, state or other governmental authority regarding Hazardous Substances on the Shiplift Premises or which affect or will affect the Shiplift Premises, or expenses or losses incurred or expected to be incurred by Operator or any government agency to study, assess, contain or remove any Hazardous Substances on or near the Shiplift Premises, and (ii) written notice of any knowledge or information Operator obtains regarding the release or discovery of Hazardous Substances on the Shiplift Premises. (f) Indemnification. Operator agrees to indemnify, hold harmless and defend City, and the officers, employees and agents of City, from and against any and all claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and costs and expenses (including attorneys' fees), arising directly or indirectly from or out of, or in any way connected with: (i) The failure of Operator to comply with its covenants and agreements contained in this section; Responsibility and Indemnity for Environmental Liability. (A) General Allocation of Responsibilities. Except as otherwise specifically set forth in this Section, City shall be responsible for liability for any Cleanup Required by Law of Pre-existing Contamination and Operator shall be responsible for liability for Cleanup Required by Law of Subsequent Contamination. (B) Operator Indemnification of City for Subsequent Contamination. Operator agrees to indemnify, hold harmless and defend City, and the officers, employees and agents of City, from and against any and all claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and costs and expenses (including attorneys' fees), arising directly or indirectly from or out of or in any way connected with Subsequent Contamination that involves: a. The failure of Operator to comply with its covenants and agreements contained in Section 2 that result in liability relating to Subsequent Contamination; b. Any activities on the Shiplift Premises which directly or indirectly result in the Shiplift Premises becoming contaminated with Hazardous Substances that are Subsequent Contamination; c. The discovery of Hazardous Substances on the Shiplift Premises City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 7 168 determined not to be Pre-existing Contamination in accordance with the provisions of this Section 2.03(f) . d. The clean-up of Subsequent Contamination from the Shiplift Premises. (g) The provisions of this section, including the obligation to indemnify, shall survive the termination or expiration of the Agreement Term. (h) Nothing in this section shall prejudice or impair the rights or claims of Operator against any person or entity other than City with respect to the presence of Hazardous Substances as set forth above. Section 2.04 - Protection Against Liens. (a) Operator shall not permit to be enforced against the Shiplift Facility or any part of it any mechanic's or materialman's lien arising from any work of improvement, however it may arise. However, Operator may in good faith and at Operator's own expense contest the validity of any such asserted lien, claim or demand, provided Operator has furnished the bond required in AS 34.35.072 (or any comparable statute hereafter enacted for providing a bond freeing the Shiplift Facility from the effect of such a lien claim). Operator shall defend and indemnify City against all liability and loss of any type arising out of work performed on the Shiplift Facility by Operator, together with reasonable attorneys' fees and all costs and expenses incurred by City in negotiation, settling, defending, or otherwise protecting against such claims. (b) If Operator does not cause to be recorded the bond described in AS 34.35.072 or otherwise protect the property under any alternative or successor statute, and a final judgment has been rendered against Operator by a court of competent jurisdiction for the foreclosure of a mechanic's or materialman's lien claim, and if Operator fails to stay the execution of the judgment by lawful means or to pay the judgment, City shall have the right, but not the duty, to pay or otherwise discharge, stay, or prevent the execution of any such judgment or lien or both. Operator shall reimburse City for all sums paid by City under this paragraph, together with all City's reasonable attorneys' fees and costs, plus interest on those sums, fees, and costs at the rate of 10.5 percent per year from the date of payment until the date of reimbursement. (c) City may give notice of non-responsibility for any work performed by Operator on the Shiplift Facility. (d) On completion of any substantial work of improvement during the Agreement Term, Operator shall file or cause to be filed a notice of completion. Operator hereby appoints City as Operator's attorney-in-fact to file the notice of completion on Operator's failure to do so after the work of improvement has been substantially completed. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 8 169 Section 2.05 - No Preferential Rights to Use Port Facilities. This Agreement does not grant any exclusive or preferential right to use any of City's Port Facilities, except that Operator shall have a preferential right to use the Shiplift Facility. Operator's use of City's Port Facilities shall be subject to the applicable tariffs, procedures, rules and regulations of City in effect from time to time. Section 2.06 - Security for Shiplift Premises. Operator shall limit access to the Shiplift Premises by maintaining at Operator's expense the existing fence along the northerly edge of the Managed Parcel. Operator shall provide City and its lessees with 24 hour access to the Managed Parcel. Section 2.07 - Leasing and Use of Managed Parcel. (a) City reserves the right from time to time to lease all or any part of the Managed Parcel, to use all or any part of the Managed Parcel for any purpose, and to permit others to use all or any part of the Managed Parcel, provided that: (1) Notwithstanding Section 2.03, Operator shall not be responsible for any Hazardous Substances on the Managed Parcel resulting from the leasing or use of the Managed Parcel under this subsection, and any lease of the Managed Parcel by City shall incorporate obligations of the lessee in the terms of Section 2.03 for the benefit of City and Operator. Upon the termination of any such lease or use of the Managed Parcel, City at its own expense, shall conduct an environmental audit of the area subject to the lease or use, and provide a copy of the audit report to Operator. As between City and Operator, City shall be responsible for any Hazardous Substance revealed by the report that was not reported to be present at the commencement of the lease or use. (2) Notwithstanding Article IV, Operator shall not be responsible for indemnity or insurance with respect to the leasing or use of the Managed Parcel under this subsection, and any lease of the Managed Parcel by City shall incorporate obligations of the lessee in the terms of Article IV for the benefit of City and Operator. (b) Operator may use all or any part of Managed Parcel for the temporary storage of vessels at the current day lay charge stated in City's harbor tariff. This permission for use by Operator may be revoked by City at any time. Unless City and Operator agree otherwise, any other use by Operator of the Managed Parcel shall be subject to rental charge per square foot equal to double the per square foot rent represented by the currently effective Rent under the Lease. Section 2.08 - Inspection by City. City may at any time enter the Shiplift Premises, for the purpose of inspection to determine Operator's compliance with the terms of this Agreement. Such inspection may include the taking of samples of soil or water, and the reviewing and copying of any records relating to the operation of the Shiplift Facility. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 9 170 ARTICLE 3 Operation and Maintenance of Shiplift Facility Section 3.01 - Revenue. Operator shall have the right to collect and retain all Revenue received from the Shiplift Facility, and Operator shall account separately for all Revenue received by Operator. Section 3.02 - Annual Facility Costs. Operator shall pay the Annual Facility Costs for each Fiscal Year. Annual Facility Costs consist of the following, properly incurred or paid during each Fiscal Year: (a) Maintenance and Operation Costs of the Shiplift Facility; and (b) Amounts which may be required to pay the costs of major renewals or replacements of the Shiplift Facility, to the extent that such costs are not covered by insurance. Section 3.03 - Operation of Shiplift Facility. (a) Operator shall at all times maintain, preserve and keep, or cause to be maintained, preserved and kept, the Shiplift Facility and all additions and betterments thereto and extensions thereof and every part and parcel thereof in good repair, working order and condition and will from time to time make or cause to be made all necessary and proper repairs, renewals and replacements thereto and may from time to time make or cause to be made extensions and betterments thereto, and Operator will at all times operate or cause to be operated the Shiplift Facility in a safe and efficient manner in accordance with the manufacturer's instructions for operation, and at a reasonable cost. Operator will comply with all terms and conditions of all licenses and permits which are of material importance to the operation of the Shiplift Facility Operator shall maintain a Certificate of Class and maintain a fully functioning cathodic protection system. (b) Operator shall perform Maintenance of the Shiplift Facility in accordance with the maintenance schedule prepared by City and Operator and attached as Exhibit D hereto. This schedule provides for maintenance in accordance with the recommendations of Norton Corrosion and Pearlson Shiplift Corporation and their successors, and shall be kept in conformance with the maintenance recommendations of Pearlson Shiplift Corporation. This schedule provides for major renewals and replacements to the Shiplift Facility, which shall be modified from time to time in accordance with the recommendations of Lloyd's Registry of Shipping. (c) Operator shall permit the Shiplift Facility to be operated only by persons that Operator determines to be qualified, competent and otherwise fit to perform their assigned duties in the operation of the Shiplift Facility. Formal training is the City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 10 171 responsibility of Operator and can be obtained from Pearlson Shiplift Corporation or others. (d) Agents of City may enter the Shiplift Facility at all times to inspect the Shiplift Facility or observe its operation. If City observes the Shiplift Facility being operated in an unsafe manner or in a manner that does not conform to the manufacturer's instructions for operation, City may order Operator to cease operating the Shiplift Facility until the problem has been corrected. (e) Operator shall, at its own expense, schedule annual inspections of the Shiplift Facility by Norton Corrosion, Pearlson Shiplift Corporation, Lloyd's Register of Shipping and such specialty consultants as may be required by Pearlson Shiplift Corporation or Lloyd's Register of Shipping, and promptly provide to City a copy of the report of each such inspection. (f) Operator shall maintain reasonable hours of Shiplift Facility operation, and reasonable procedures for Shiplift Facility operation, that accommodate all members of the public desiring to use the services of the Shiplift Facility. In operating the Shiplift Facility, Operator shall not discriminate against any member of the public desiring to use the Shiplift Facility with respect to hours of operation, services offered, scheduling of operations, or any other aspect to Shiplift Facility operation. Section 3.04 - Maintenance of Accounts and Statements; . Operator shall keep proper books of account for the Shiplift Facility which shall be kept in accordance with Generally Accepted Accounting Principles. Operator shall prepare, and submit to City, statements showing in reasonable detail income and expenses of the Shiplift Facility for each Fiscal Year, including Revenues, amounts expended for maintenance, renewals and replacements of and capital additions to the Shiplift Facility. Such statements shall be filed with City within 120 days of the close of each Fiscal Year. Section 3.05 - Operating Plan. Prior to the beginning of each Fiscal Year, Operator shall prepare and file with City an operating plan for the ensuing Fiscal Year. The operating plan shall include an estimate of Revenues and Annual Facility Costs and a schedule for repairs and maintenance to be performed during the Fiscal Year. Section 3.06 - Inventory. Operator shall maintain on hand the inventory of spare parts for the operation and maintenance of the Shiplift Facility as shown in Exhibit E, and Operator shall sell that inventory to City upon the expiration or earlier termination of the Agreement Term. Section 3.07 - Rates and Charges. With each annual operating plan submitted to City, Operator shall propose rates and charges for the use of the Shiplift Facility. Such rates and charges shall not discriminate among users of a class of service or among different classes of service. Rates and charges do not discriminate among classes of City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 11 172 service if they are reasonably related to the cost of providing each class of service, allocated according to Generally Accepted Accounting Principles. ARTICLE 4 Indemnity; Insurance Section 4.01 - Operator's Duty to Indemnify. In addition to any other duty to indemnify or defend City, Operator shall defend, indemnify and hold harmless City from any and all claims, actions and demands for death or injury to persons or damage to property, arising from the use of the Shiplift Facility during the Agreement Term by Operator, Operator's contractors, agents, officers, employees and invitees, or the general public. Section 4.02 - Insurance Requirements. During the Agreement Term, Operator shall procure and maintain at its expense the insurance described in this section subject to the terms and conditions set forth in this section. (a) Operator shall procure and maintain the following insurance under this Agreement: (1) Commercial general liability and automobile insurance, with limits of liability of $5,000,000 for all injuries, deaths or property damage resulting to any one person and $5,000,000 limit from any one occurrence. Coverage under such insurance shall also include explosion, collapse and underground property damage hazards. Such insurance shall include a blanket contractual liability endorsement. For non-owned watercraft of Operator or its customers any "watercraft exclusion" in the commercial liability insurance policy shall be eliminated. Protection and indemnity insurance shall be provided with the same limits as the commercial liability insurance for the use of Operator-owned watercraft. (2) All risk physical damage insurance for any buildings, equipment, machinery any other property upon the Shiplift Facility at replacement value rather than original cost. (3) Workers Compensation Insurance and insurance under the Harbor Workers and Longshoremen's Compensation Act. (4) Coverage for vessels in the care, custody or control of Operator (ship repairer's liability) with limit of liability of $5,000,000. (5) Environmental impairment liability or pollution legal liability insurance for all bodily injury and property damage to parties other than Operator caused by pollution emanating from the Premises, with limit of liability of $1,000,000. (6) Marine Liability Insurance and any other insurance required under City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 12 173 any permit or tariff of City. (b) Operator shall have the right to meet the liability insurance requirements of Section 4.02(a) with the purchase of umbrella or bumbershoot insurance policies. In all instances, the combination of primary and umbrella liability coverage must equal or exceed the minimum liability insurance limits stated in Section 4.02(a). (c) The minimum amounts and types of insurance required under this Section shall be subject to revision in accordance with standard insurance practices, in order to provide continuously throughout the Agreement Term a level of protection consonant with good business practice and accepted standards in the industry. Such factors as increases in the cost of living shall be utilized in assessing whether the minimum insurance requirements should be increased. City shall notify Operator of any required increase in insurance coverage. (d) All insurance policies shall provide for 30 days' notice to City of cancellation and/or material change in policy terms. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to City. Operator shall furnish City, on forms approved by City, certificates evidencing that it has procured the insurance required herein prior to the operation of the Shiplift Facility by Operator. Operator shall be liable for all deductibles under any insurance policy obtained by Operator under this Agreement. Nothing herein contained shall prevent Operator or City from placing and maintaining at City's or Operator's own individual cost and expense, additional or other insurance as may be desired. (e) On October 1, 2023, and annually thereafter throughout the Agreement Term, Operator shall procure and submit to City a written report from a reputable insurance broker acceptable to City that the broker has reviewed the types and amounts of coverage of insurance obtained by Operator and the operations of Operator and in the opinion of the broker the coverage complies with Operator's obligations under this Agreement. (f) All of the insurance policies required above as well as any other insurance carried by Operator or City shall provide that the insurers waive their rights of subrogation against City and Operator and their respective officers, servants, agents or employees. Operator further agrees to waive and agrees to have its insurers waive any rights of subrogation (whether by loan receipts, equitable assignment or otherwise), with respect to deductibles under such policies and with respect to damage to equipment including the loss of use thereof, whether insured or not. Operator shall also name City as an additional insured on the general liability insurance policy maintained by Operator as required above, excluding coverage for claims resulting from City's negligence. Operator shall promptly and without request by City supply City copies of all insurance binders and policies. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 13 174 ARTICLE 5 Assignment Section 5.01 - Assignment of Agreement. The parties recognize that a material reason for the finding by the City Council of Seward that it is in the public interest to enter into this Agreement with Operator is Operator's experience in operating vessel repair and construction facilities on the Premises. Except as provided in Section 5.02, any assignment of this Agreement by Operator shall be void, and any attempt by Operator to assign this Agreement gives City the right immediately to terminate this Agreement. Section 5.02 - Assignment. Notwithstanding Section 5.01, Operator may assign its entire interest under this Agreement to a person to whom Operator sells its vessel repair and construction business, provided that the assignee and the terms of the assignment shall be subject to approval by City, or (b) any entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, Operator, without consent or approval by City." ARTICLE 6 Default; Remedies Section 6.01 - Events of Default. Each of the following shall be an act of default under this Agreement and the terms "acts of default" and "default" shall mean, whenever they are used in this Agreement, any one or more of the following events: (a) Failure by Operator to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this Agreement for a period of 30 days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to Operator by City; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by Operator within the applicable period and diligently pursued until the default is corrected. (b) The making by Operator of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by Operator, the adjudication of Operator as insolvent or bankrupt, the petition or application by Operator to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to Operator under any bankruptcy, insolvency, reorganization, arrangement or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six months from the date of commencement thereof. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 14 175 (c) Any event of default under the Lease. Section 6.02 - Remedies for Default by Operator. Whenever an act of default by Operator shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, City shall have the following rights and remedies all in addition to any rights and remedies that may be given to City by statute, common law or otherwise: (a) City may terminate this Agreement and re-enter the Shiplift Facility and take possession thereof. (b) Recover, whether this Agreement be terminated or not, damages incurred by City by reason of the breach or default by Operator. (c) No expiration or termination of this Agreement shall expire or terminate any liability or obligation to perform of Operator's which arose prior to the termination or expiration except insofar as otherwise agreed in this Agreement. (d) Each right and remedy of City provided for in this Agreement shall be cumulative and shall be in addition to every other right or remedy provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by City of any one or more of the rights and remedies provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by City of any or all other rights or remedies provided for in this Agreement or now or thereafter existing at law, or in equity or by statute or otherwise. Section 6.03 - No Waiver of Breach. No failure by City to insist upon the strict performance by Operator of any term, covenant or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this Agreement, but each and every term, covenant and condition of this Agreement shall continue in full force and effect with respect to any other then existing or subsequent breach. Section 6.04 - Cure by City. City shall have the right, but not the obligation, to cure any default of Operator under this Agreement if Operator fails to cure the default within the time allowed under Section 6.01 . Any cost incurred by City in effecting such a cure shall be payable by Operator upon demand, and shall bear interest at a rate of 15% per annum until paid. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 15 176 ARTICLE 7 Miscellaneous Section 7.01 - Time. Time is of the essence of each provision of this Agreement. The time in which any act is to be performed under this Agreement shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. Section 7.02 - Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the matters covered by this Agreement, and no other agreement, statement or promise made by any party which is not contained in this Agreement shall be binding or valid. Section 7.03 - Relationship of Parties. Nothing in this Agreement, and no performance of either party hereunder shall cause the relationship of the parties to be that of principal and agent, partners or joint venturers, or cause the parties to be associated in any manner other than as owner and independent contractor. Section 7.04 - Notices. All notices required or authorized to be given by either party under this Agreement shall be in writing and shall be served personally or sent by registered mail as follows: City of Seward P.O. Box 167 Seward, Alaska 99664 Attention: City Manager JAG Alaska, Inc. P.O. Box 969 Seward, Alaska 99664 Attention: Tim Jagielski Notice by mail shall be deemed to have been given at the time of mailing. Each of the above addressees may, by written notice to the other, designate any further or different addresses to which subsequent notices shall be sent. In addition, the parties hereto may agree to any other means by which subsequent notices may be sent. Section 7.05 - Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon City and Operator and their respective successors and assigns. Section 7.06 - Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provisions hereof. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 16 177 Section 7.07 - Amendments. This Agreement may be amended only by a writing signed by City and Operator. Section 7.08 - Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 7.09 - Applicable Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska. Any civil action brought by any party under this Agreement shall be commenced and maintained in the Superior Court, Third Judicial District, State of Alaska, at Anchorage. Section 7.10 - Captions. The captions or headings in this Agreement are for convenience only and no way define, limit, or describe the scope or intent of any provisions or sections of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. C ity: CITY OF SEWARD Norm Regis Acting City Manager ATTEST: Kris Peck City Clerk Operator: JAG Alaska Inc. Tim Jagielski Executive Vice President City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 17 178 Exhibit A ski+'n"i h N,Ll-'„r-i.. 7 ,1 f 7._... Fend w - 4iuepocts wM, + LI KPB 6aundaly ry fl Place Names U,-IDF RoatlS .a wu.r r.a..m rwrr - e wpm a:: 6 .. °,w Tax Parcels mAs m�p�e a tmr grnxaac sac�.a i�^m rrrara�prg ska r`e a.Ire�wnrn mrrp.i'7�.tp�acmY�poar m�s map,r.�ff r.r,,nr: bi x .Xq a Mkq,a adme to rfi%kwe k k hae to as sa',trr rysly..zk z Notes DATE PRINTED- 1/3d/2M City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 18 179 Exhibit B - Maintenance Tasks and Schedule In addition to other obligations in this Agreement, all maintenance of the Shiplift Facility shall accomplish and conform with the guidelines in the operation and maintenance manuals, S-2787 and S- 2751, as published by NEI Syncrolift and current standards set by Pearlson Shiplift Corporation Maintenance Records P022— Seward Ships Drydock Company, Norton Corrosion, and Lloyds of London. City of Seward and JAG Alaska Inc. Maintenance and Operating Agreement Page 19 180 Sponsored by: Hunt 6. CITY OF SEWARD, ALASKA RESOLUTION 2014-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE ASSIGNMENT OF THE GROUND LEASE WITH SEWARD SHIP'S DRYDOCK, INC. FOR THE REAL PROPERTY DESCRIBED AS LOTS 1-A AND 3,BLOCK 7, FOURTH OF JULY CREEK SUBDIVISION SEWARD MARINE INDUSTRIAL CENTER, SEWARD SHIP'S DRYDOCK REPLAT, ACCORDING TO PLAT 2002-22, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA,TO VIGOR ALASKA-SEWARD,LLC,SUBJECT TO ASSIGNOR PROVIDING THE CITY PROOF OF ENVIRONMENTAL LIABILITY INSURANCE FOR FOUR(4)YEARS FROM THE DATE OF ASSIGNMENT, AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AMENDMENT NO. 5 TO THE ASSIGNED GROUND LEASE WHEREAS, the city (Lessor) and Seward Ship's Drydock, Inc. (Lessee) entered into the current ground lease in 1995; and WHEREAS,the Ground Lease has been amended and extended,with the most recent in July 5 2012 extending the term until June 30, 2040; and WHEREAS, the lease authorizes assignment by the Lessee subject to city approval if the Lessee sells its vessel repair and construction business; and WHEREAS, Seward Ship's Drydock,Inc. desires to sell and Vigor Alaska- Seward, LLC desires to purchase the vessel repair and construction business operated on the leased land; and WHEREAS, Seward Ship's Drydock, Inc desires to assign its lease to Vigor Alaska - Seward, LLC, and Vigor Alaska desires to assume the lease; and WHEREAS, Vigor Alaska - Seward, LLC desires to amend the lease as presented at this meeting and attached hereto; and WHEREAS,the city requires the Assignor to provide the City with proof of environmental liability insurance naming the city as insured as a condition of assignment; and WHEREAS, city administration has negotiated the terms of the lease amendment, and the parties agree that a timely and efficient transfer is in the parties' and the public's interest; and WHEREAS,the City Charter,provisions of which cannot be waived by the council,requires that resolutions involving real property transfers become effective not less than thirty (30) days following passage and approval. 181 CITY OF SEWARD, ALASKA RESOLUTION 2014-044 Una NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council authorizes the assignment of the Ground Lease from Seward Ship's Drydock,Inc.to Vigor Alaska-Seward,LLC,subject to Seward Ship's Drydock,Inc. satisfactory proof of insurance for environmental liability naming the city as insured for a period of four (4) years. Section 2. The Ground Lease assigned to Vigor Alaska-Seward,LLC is hereby amended as presented at this meeting and attached hereto,and the City Manager is authorized to execute same in substantially the form presented here. Section 3. This resolution shall take effect thirty (30) days after passage and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 121h day of May, 2014 9 THE CITY OF SEWARD, ALASKA •id can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Butts, Bardarson NOES: None ABSENT: Darling ABSTAIN: None ATTEST: �. Johanna Kinney, CK4C j City Clerk (City Seal) .•�y OF SE{q,'•., •� •••........... Cj • � C � r • e° ® r i ' p i ' ;.sue.,•••• • 1�„ .••P 182 ti•..F OF A�-�' City Council Agenda Statement Meeting Date: May 12, 2014 To: Seward City Council From: Jim Hunt, City Manager Agenda Item: Assignment of the ground lease with Seward Ship's Drydock to Vigor Alaska LLC, and amendment of the assigned lease. BACKGROUND & JUSTIFICATION: The City of Seward has leased land to Seward Ships' Drydock, Inc. since 1988. The current ground lease was entered into in 1995 for a Lease Term through June 30, 2009, and amended in January 2010 and further amended in July 2012 to extend the term until June 30, 2040. Jim Pruitt, President of Seward Ship's Drydock, Inc. has sold his vessel repair and construction business to Vigor Alaska, LLC, and now desires to assign Seward Ship's Drydock's entire interest under the lease to Vigor Alaska, LLC, as authorized under Article 8, Section 8.03 of the current lease, subject to the approval of the City. Vigor Alaska, LLC, having conducted all appropriate inquiry regarding the site, agrees to accept, assume, and agrees to keep, perform and fulfill all of the terms, covenants, conditions and obligations of the lease, as amended by this resolution. Vigor desires to amend sections of the lease as attached hereto and as presented at this meeting. Corresponding amendments are also required to align provisions of the Operations and Maintenance Agreement. One amendment seeks to have the City indemnify Vigor for a period of four years for potential cleanup liability should a contaminant be found during that period and be determined to have existed prior to this lease assignment. The administration recommends that as a condition of lease assignment Seward Ship's Drydock, Inc. provide the City with proof of environmental liability insurance for that same period of time. Attached are the lease amendments, Phase I and Phase II Environmental Site Assessments, the original lease dated April 25, 1995, lease amendment 1 dated December 23, 1997, lease amendment 2 dated January 2000, lease amendment 3 dated October 26, 2001, lease amendment 4 dated January 14 2010, and Agreement to Extend Ground Lease dated July 11, 2012. INTENT This resolution will authorize assignment of the lease from Seward Ship's Drydock, Inc. to Vigor Alaska, LLC, and amend sections of the newly assigned lease. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (3.1.1.2, page8): "Expand the Seward Marine 1. Industrial Center; Improve and Expand onshore and offshore maritime X facilities." 2 Strategic Plan (Page 7): "Expand development in the Seward Marine X Industrial Center." 3. Other(list): X 183 Sponsored by: I1unt CITY OF SEWARD, ALASKA RESOLUTION 2014-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE ASSIGNMENT OF THE MAINTENANCE AND OPERATING AGREEMENT OF THE SHIPLIFT AND DRYDOCK AREA TO VIGOR ALASKA-SEWARD LLC., AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AMENDMENT WHEREAS,the City (Lessor) and Seward Ship's DryDock, Inc. (Lessee)entered into the current ground lease and Maintenance and Operating agreement in 1995; and WHEREAS,City Council authorized the amendment and assignment of the Ground Lease to Vigor Alaska-Seward LLC with the passage of Resolution 2014-044 on May 12, 2014; and WHEREAS, the City requires the Assignor to enter into an amended Maintenance and Operating agreement for the operation of the City's shiplift on the leased parcels; and WHEREAS, City administration has negotiated the terms of the amended and reassigned Maintenance and Operating agreement; and 6. WHEREAS,that amended agreement is attached and will go into effect immediately upon approval of this resolution. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized and directed to sign, on behalf of the City of Seward, the amended and reassigned Maintenance and Operating Agreement, in the form substantially presented at this meeting, with Vigor Alaska-Seward LLC. Section 2. This resolution shall take effect immediately after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27"' day of May, 2014. THE CITY OF SEWARD ALASKA can Bardarson, Mayor 184 CITY OF SEWARD, ALASKA RESOLUTION 2014-050 AYES: Keil, Casagranda, Terry, Butts, Darling, Bardarson NOES: None ABSENT: Squires ABSTAIN: None ATTEST: Jf Jo nna Mfey, C C it Clerk �`� (City Seal) ��o��rua�rar .••y of se►v41 ��°�� . V�•C0 R9T�,• r SEAS. 10 s t 10 •,s�H 1 ��,. . .,yg p�•0 F F.NY , 185 City Council Agenda Statement Meeting Date: May 27, 2014 To: Seward City Council From: Jim Hunt, City Manager Agenda Item: Vigor Alaska-Seward LLC, Maintenance and Operating agreement BACKGROUND & JUSTIFICATION: The City of Seward has leased land and a shiplift to Seward Ship's Drydock, Inc. since 1988. The ground lease for that land was amended and assigned to Vigor Alaska-Seward LLC with the passage of Resolution 2014-044 on May 121h, 2014. In order for the new lessee to begin operation the City of Seward requires Vigor Alaska-Seward, LLC., to enter into a reassigned and amended Maintenance and Operations Agreement. Attached is the amended Maintenance and Operating Agreement for assignment, in substantial form, to accompany the ground lease for the SMIC area and shiplift for Vigor Alaska-Seward, LLC. INTENT This resolution will authorize and direct the City Manager to enter into the amended assigned Maintenance and Operating agreement with Vigor Alaska- Seward, LLC. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (3,1.1.2,page8): "Expand the Seward Marine I. Industrial Center; Improve and Expand onshore and offshore maritime X facilities." 2 Strategic Plan (Page 7): "Expand development in the Seward Marine X Industrial Center." 3. Other (list): X FISCAL NOTE: The Maintenance and Operating and Agreement does not impact the lease rates. Approved by Finance Department: ATTORNEY REVIEW: Yes: (Resolution) X No: RECOMMENDATION: Approve Council Resolution 2014- 050authorizing the assignment of the Maintenance and Operating Agreement of the City Shiplift and accompanying leased area to Vigor Alaska-Seward, LLC., and authorizing the City Manager to enter into an amendment to the assigned agreement. 186 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-064 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE ASSIGNMENT, ASSUMPTION AND AMENDMENT OF THE MAINTENANCE AND OPERATING AGREEMENT OF THE SHIPLIFT AND DRY DOCK AREA TO JAG, ALASKA, INC. WHEREAS,the City(Lessor)and Seward Ship's Dry Dock,Inc. (Lessee)entered into the current ground lease in 1995 and Maintenance and Operating Agreement in 2012; and WHEREAS,City Council authorized the amendment and assignment of the Ground Lease to Vigor Alaska— Seward LLC with the passage of Resolution 2014-044 on May 12, 2014,and from Vigor Alaska—Seward LLC to JAG Alaska, Inc. with Resolution 2018-061 on July 23, 2018; and WHEREAS, City Council authorized the amendment and assignment of the Maintenance and Operating Agreement to Vigor Alaska—Seward LLC with the passage of Resolution 2014-050 on May 27, 2014; and WHEREAS, the City requires Vigor Alaska-Seward LLC (the "Assignor') to enter into an Assignment and Assumption Agreement(the"Agreement")with JAG Alaska,Inc.for the operation of the City's shiplift on the leased parcels as a condition of the purchase and sale of the vessel repair and construction business operated on the leased parcels and the related Assignment, Assumption and Amendment of the Lease between Assignor and Assignee; and WHEREAS,the Agreement is attached and will go into effect immediately upon approval of this resolution. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized and directed to sign, on behalf of the City of Seward, the Assignment and Assumption Agreement, in the form substantially presented at this meeting, with JAG Alaska, Inc. Section 2. This resolution shall take effect immediately after adoption. 187 CITY OF SEWARD, ALASKA RESOLUTION 2018-064 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of July, 2018. THE CITY OF SEWARD,ALASKA David Squires, M yor AYES: Casagranda, Seese. McClure, Keil, Towsley, Squires NOES: None ABSENT: Hom ABSTAIN: None ATTEST: --�, Zm� Brenda J. Ballou. khfC City Clerk Its##sat (C i t\ Seal)•�.•'`.4'�,Of S EW %•4" SE ►L r � � OF A��;.•`" rrrrrsswrr 188 164 Agenda Statement Meeting Date: June 25, 2018 To: Seward City Council From: Jim Hunt, City Manager Agenda Item: JAG Alaska, Inc. Maintenance and Operating Agreement BACKGROUND & JUSTIFICATION- The City of Seward leased land to and had a Maintenance and Operating Agreement with Seward Ship's Drydock, Inc. from 1988 until 2014. In 2014 both the ground lease and Maintenance and Operating Agreement were amended and assigned to Vigor Alaska-Seward LLC. With the passage of Resolution 2018-XXX the ground lease was assigned to JAG Alaska. In order for the new lessee to begin operation the City of Seward requires JAG Alaska, to enter into a reassigned Maintenance and Operations Agreement. Amendments to the agreement are to change the commencement date of the agreement to the date of enactment of this resolution, and changing the names and Notice address of the assignee. Attached is the Maintenance and Operating Agreement for assignment,in substantial farm,to accompany the ground lease for the Premises to JAG Alaska, Inc. INTENT: This resolution will authorize and direct the City Manager to enter into the assigned Maintenance and Operating agreement with JAG Alaska, Inc. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan(3.5.1.2,page]b):Plan for adequate port infrastructure 1. that will serve the needs of users in the main industrial/Alaska Railroad X area and at the Seward Marine Industrial Center SMIC . Strategic Plan ((Page 7): "Expand development in the Seward Marine 2. Industrial Center." X 3. Other (list): X FISCAL NOTE: The Maintenance and Operating Agreement does not impact the lease rates, and assigning the agreement has no direct fiscal impact. Approved by Finance Department: ATTORNEY REVIEW: Yes X No Not Applicable 1In 165 RECOMMENDATION: Approve authorizing the assignment of the Maintenance and Operating Agreement of the City Shiplift and accompanying leased area to JAG Alaska, Inc. Resolution 2018-064 1'90 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 2023-015 191 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 36.10.125 192 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 193 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: 194 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 system for- the without creating unreasonable administrative burdens and restrictions; C: � Provide flexibility in and safeguards for maintainin,- a procurement system of quality and integ-rity 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. -S,Prevent collusion and anti-competitive practices by the providers of goods and services, E Ensure that the city's purchasing actions are in compliance with applicable state and federal standards, regulations and tribal laws, and 195 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 tie effieer or employee of the e4y shall ha-ve attthofity to enter- into any aral agreement involving t s that eaeh &Epeadittire has been properly at4horized and that funds ha-ve been lawfii!!�, apprepria+ed for that perehase. The eity managef: ef: designee and eit-y eleAE or designee shall sign all eantraets on behalf of the e4y and the e4y manager or designee and the fiflaflee dire or designee shall sign all perehase erders. B. No officer or employee of the city shall have authority to enter into any oral a,-reement involvin,- the expenditure of money, Separate perehase erders shall net be isseed for- the f, ting the I� ,R liffl tali RS f this title C. Separate purchase orders shall not be issued for the purpose of circumventin- the requirements and limitations of this title. The e4y m thorize any depa tme eantraetual serviees eader written proeederes not less r-estrietive than those preseri-�-ed- ender- D. References in this title to matters required to be in "writin'-"or to be "written"may include electronic communication unless procedures are otherwise prescribed shall have the attthority to and shall establish the admi )eederes and provide for ether- matters whiek may be neeessafy to earfy etit the previsiens ef this ehapter- and Chapter 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; ,„-,,yide.a, however,that all sealed bids and sealed prepesals mest be physieally stibmitted in the manner- previded in Chapter ti 10. 6.01.026 Authority. 196 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. The finance director's, or desig-nee's, written approval of expenditures certifies that each expenditure has been properly authorized and that funds have been lawfully appropriated for that purchase throe,-h approved city bud,-et. B. The city mana,-er or desi,-nee and city clerk or desi,-nee shall si,-n all contracts on behalf of the city. C. The city mana,-er 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 mana,-er 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 mana,-er is authorized to issue an invitation to bid if the procedure will best serve the needs of the city and accomplish the objectives of this title. F. The city mana,-er is hereby authorized to issue a request for proposals of the city and accomplish the objectives of this title. G. The city mana,-er my reiect any or all quotations and may waive minor irre,-ularities in the quotations. 6.01.030 Repealed by Ord. 2003 City credit cartL 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 t4+e making e€partial or final payments on contracts, the city manager or designee shall certify the conditions of the contract for which payment is being made have been complied with. 1. In the case of partial payments,stieh 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. Stieh The certificates of estimates shall further indicate that if a greater proportion of the contract has been performed by the contracting party 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 even 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 ^won of the city concerned shall 197 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 StIC4 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. 04)Any charge for city utility or harbor services, or 4. O-Y4 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: 1. (i)Taxes levied by the city or the Kenai Peninsula Borough, 2. (4) Special assessments levied by the city, 3. 04)Charges for city utility or harbor services, and 4. O-Y4 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 ova tive date of this see4i ,, 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 stt&the tax, assessment, charge or fee. 6.01.060 Business license required A. All contractors or persons conductin,-work for, or providin,-professional services to or on behalf of, the city shall obtain a city business license prior to conductin'- any work or providing any services. B. A valid city business license shall be required to be maintained for the life of the contract or a,-reement between the city and the contractor or provider. C. To obtain a city business license, a current state business license and valid Kenai Peninsula Borou,-h sales tax account is required D. Accordin,- to Municipal Code 8.30.020, an exemption to this requirement is made for -overnment and-overnmental services. 6.01.070 Definitions. Bid Offer of a specific price to secure commodities, capital equipment or construction work. 198 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 Intermediate purchase. Those purchase orders or contracts for labor, services, materials, or other valuable considerations between $5,000 - $30,000 for anv one item, or any passenger vehicle purchase. Maior purchase. Those purchase orders or contracts for labor, services, materials, or other valuable considerations which exceed $30,000 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$5,000 for any one item. Open market purchasin,-. Procuring goods 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 mana,-er each fiscal year. Allows city employees to purchase items as needed for under$1,000. Purchases must still be approved by department head Passen,-er vehicle. Any vehicle that is primarily intended for the carria'-e of*passenpers and does not meet the requirements of Alaska Statute definition of"commercial motor vehicle." Professional services. Those services that require special knowled,-e and iud,-meet 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 su,-,-estion 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 writin'-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 -oods or services are specialized or unique in character. Written justification 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 charged at fixed hourly rates that reflect wa,-es, -eneral and administrative expenses, and profit Value en,-ineerin,-.A systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost 199 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 Chapter 6.05 ineidental 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. R 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. tha+ r-easenable effei4s ha-ve been made te pr-evide the e4y with the lewest and best pr-iees. obtainable, and pr-ovided that the F shall notify the e4y eatineil at its ae�Et r-egtila-F ineltide, but are not limited to, th- Otat!E)HS Of advei4isiag for- sealed bids. The eitly managef may fejeet any er- all Eltiet4i8fis ef bids and may waive tier- ir-r-egelar-ifies in the bids. 6vs0r5. Solie4ation, n ro interested pe r r B. Otieta6ens. A detailed r-eeer-d shall be made ef the Eltieta6ens r-eeeived and shall ineltide t open ffiar4et with stieh eampetition as is reasonable and pr-aetieal in the eir-etiffistanees. . , shall be made when feasible and when in t *bed fer- the award ef fer-mal sealed bid per-ehases. Seek epen mar4et per-ehases 'A.,heifiever- pr-aetieable, shall be based an at least three ild shall be awarded to t lewest Eltialified bidder-. The basis fer-detefmining the lewest Eltialified bidder-shall be the same established by law. 200 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 behalf of-,the e4y shall obtain a 64y business lieense prior-to eandueting any waf:k or-providing any (d) A valid e4y business lieense shall be r-equir-ed to be maintained for-the life of the eaatr-aet or- agr-eement between the e4y and the eentr-a 6.05.025Intermediate purchases ($5,000- $30,000). A. The city mana,-er 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 mana,-er shall notify the city council at its next regular 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 manager 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. Definition. Far-the pur-poses of this ehapter-, fn�Ew pur-ehases are these pur-ehase Ewder-s Ew eaatr-aets for-labE).r-., 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, Mils or ne-lects to enter into a contract and file any required payment or performance bond, the city mana,-er 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. 201 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 C. In lieu of the foregoing, 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, guaranteeing the bidder will enter into a contract and file the required bond within the required period D. Without limiting the foregoing, 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 manager will disclose if an exemption to the procurement process was used and the reasoning behind the utilization of the exemption when requesting 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 regulations. 6.10.0308 Exemptions for specialized products and professional services. A. Exceptions for specialized products and professional services include: R es+ri et e s and 1. Purchase of supplies, materials, equipment or contractual services from another unit of government at a price determined by the city manager 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 government authority, ineident to eampetitive bidding, 0 able• 3. Purchase of professional services. pr-oeedtir-es E)- -o eetiag a low bid et „t in § ti i n i 40 tiar-easoaable;- amples of Professional services include accounting, architectural, appraisal, engineering, land surveying, financial consultation, legal services, lobbying, planning, economic analysis, computer programming 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 5. a single eaL- nEk e ^ tinifafm published ee;—When competitive procurement procedures have been followed, but no bids, quotations or proposals are received In such case, the city manager may proceed to have the services performed or the supplies purchased without further competitive bidding or quotation. 6. ; 202 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 7. deter-mined by state or-other- 0 0 8. knowledge and judgmeat that ineludes analysis, evaltiation, pr-edietion, planning OF . -, land stif-veying, finaneial eanstiltation, legal sef-viees, lobbying, plan 9. eaffiffleflie 0 t; n 0 10. proposals are r-eeeived. in stieh ease, the eity manager- fna-y pr-eee d *.A- haave�4e sef-viees B. The city may utilize competitive bids obtained by other governmental units. 6.10.040445 Purehase of used equipment exempti 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, by resat itia , authorizes the city manager to locate and purchase a particular type and quantity of used equipment. 6.10.0504-39 Where eompetitive bid proposals not in publie inter Exemption when competitive bid/proposals not in public interest Restrictions and provisions of this title shall not apply where the city manager 60HH64kdetermines 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 followin-circumstances: A. Based on documented research, the -ood or service is only available from one source. B. Where a public exi,-ency or emergency makes the delay in purchase due to competitive solicitation and selection unreasonable. C: When the Federal awardin,- a,-ency 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 agencies or are required for compatibility to existing equipment. F. When competitive procurement procedures have been followed, but a limited number or no bids, quotations, or proposals are received 203 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 eaatr-aetar-s or per-sons ,.,,,,,auet , . ide 2. Be reviewed by the city to ensure the bidder/proposer is not listed as prohibited for receivin-federal funds on the Excluded Parties List System within the System forAward Mana,-ement. Per Federal Re-elation 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. 6.10.080448 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 hi-,designee shall have the opportunity to be heard regarding the adverse report. C: �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. 6.10.090�5 Insufficient fiindin . 204 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 in the city manager 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$30,000.00 $100,000 the city manager shall seek and preserve a competitive environment by utilizing competitive bids process as set forth in this chapter a 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 packs,-e, 2. The process for posing questions and obtaining 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 throe'-h city fiscal policies. eheek ar draft, ar a eashier's eheek ar a draft E)a safne r-espeasible bank in the United States, in depasit not to e�Eeeed $50,000.00. if the bidder to whom the 60fltra6t is aWar-ded shall, fOr- 1-5- days after- seek award, fail ef:negleet te entef inte a eentraet and file pa-yment ef performanee bead, the eity manager shall draw the meney due E)a the eertifieate of depasit eT- ekeek er- draft, and pay the same inte t4e t+eastify, and tinder- tie eiretimstanees shall it be returned to the defaulting bidder-. stated above, fliraished by a surety at4harized to da a surety business in the state, 205 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 tha+t4e bidder-will —4e. ..4- -eentr-aet and file the r-eqttir-ed bend within seek per-ied. Withetil, lifniting the foregoing, no plea or-defense of fnistake by a bidder-shall be a-vailable 6.4720.0402M Bid€ems 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_ by hi in „bli t the tifne and plaee-designato,a in the atiee inviting 6.20.050 Public opening of bids. A. The city mana,-er or desi,-nee shall open the bid responses in public, at the time and place designated 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 openings. 6.4720.0602-34 Bid award. A. The city council may reiect all submitted bids,parts of bids, awf or all ofa bid and may waive minor irre-ularities in the bids when public interest will be best served by Join'-so. B. The city council may award the contract The ^ rtr- et shall belet bythe e ty eatifleil 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, the Seward e'ee*riea' 2. Local preference will be applied to the bid process except when specifically excluded within invitation to bid, or by funding source for project. The eit-y 6.4720.0702-M 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. 206 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 . Al , a depai4fneat or- division head ma-y best sef-ve the needs of the e4y and aeeafnplish the objeetives of this title. Th 9ef 43--. The eity manager- shall notify the e4y eatiae*! of his deeision to use any pr-aeedtir-e other-than fneeting. tha+will be tised te analyi�e and r-eeemmend award, if er-iter-ia ether-than pr-iee are te be tised. 6.4730.012315 Competitive sealed proposals.Proposals. A. The city may utilize requests for sealed,.,,mpetitive 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 mana,-er shall seek and preserve a competitive environment by utilizin'- proposals as set forth in this chapter, unless otherwise exempt. C. The city mana,-er 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'-. 6.4730.0320 Notiee.Requests for proposals-public notice. Notice of requests for proposals shall be given in accordance with this title § 6.10-25 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. 6.4730.0403M Request for proposals-packet content. Requests for proposals shall be comprised of appropriate documents and notices as indicated throe,-h city fiscal policies. Uiij-1- r-equest for- eampetitive sealed pr-apasals must eantain the date, tifne and plaee infafmation as may be r-equested by the e4y. 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. 6.47303-3060 Public opening of proposals. 207 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 A. The city mana,-er 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 epeff 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 desi,-nee shall attend and record all proposal openings. 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 a 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. 6.4730.080344 "ward of e nt-aet.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. deter-mines that pr-equalifieation is in the publie inter-est. Jidstifieation for- pr-equalifieation fna�7 inelede bet shall net be limited te the need te r-estr-iet bidding te firms ha-'4ng speei 208 CITY OF SEWARD,ALASKA ORDINANCE 2023-015 the same faetar-s as listed at § 6.10.135 for- dete....*...i....1 --peasible bidder-. Fir-fns will be either- shall approve the i-1--st by r-eseltition. Requests for-bids or-proposals will be salieited f+em enly these fifms en the appr-&ved list and enly these pr-eqttalified firms shall be allewed te submit bids pur-stiant to this seetiew. Section 2. This ordinance shall take effect 10 days after adoption. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,the 8tn day of May, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda Ballou, MMC City Clerk (City Seal) 209 Resolution 2023-088 : Submitting The Question Of Amending Seward City Charter Chapter 13.4 Disposal Of Municipal Utility Plants And Utility Property At A Regular Election In And For The City Of Seward On October 3, 2023 Documents: • Agenda Statement • Resolution 2023-088 210 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis, Acting City Manager Agenda Item: Resolution 2023-088: Submitting The Question Of Amending Seward City Charter Chapter 13.4 Disposal Of Municipal Utility Plants And Utility Property At A Regular Election In And For The City Of Seward On October 3, 2023 Background and justification: The Seward City Charter may be amended by proceedings commenced by the vote of four members of the council. Charter Section 14.2. "When an amendment is proposed by the council, it shall be submitted at the time of any election to be held in the city not less than sixty days after its proposal by the council". Charter Section 14.3. Seward City Code 4.05020(c) states, "A resolution is required to place a proposition on the ballot for the voters and must be enacted at least 53 days or more before a regular election, and at least 60 days or more before a special election." The amendment to Charter 13.4, if approved by the city's qualified voters, will amend the approval percentage requirement to dispose of municipal utility plants and utility property from 60% to a majority. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 Upgrade and expand utilities Strategic Plan: 13.3 Utilities Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund (✓): General 71 SMIC Electric Wastewater 211 Boat Harbor Parking Water Healthcare Motor Pool PI Other Note: amounts are unaudited Fund Balance/Net position — unrestricted/unassigned $ Restricted/Unavailable Cash Balance: $ Available Unrestricted Cash Balance: $ Total Cash Balance: $ Note: Unrestricted Net Position represents the total non-capital assets of the fund less any liabilities while unrestricted cash represents the liquid spendable portion of these assets on a short-term basis. Finance Director Signature: No Fiscal Impact Attorney Review x Yes Attorney Signature: Not applicable Comments: If approved by voters this charter change will be applicable to a ballot proposition to sell the Electric Utility to Homer Electric Association appearing on the same ballot. Administration Recommendation xeApprove Resolution Other: 212 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-088 A Resolution Of The City Council Of The City Of Seward,Alaska, Submitting The Question Of Amending Seward City Charter Chapter 13.4 Disposal Of Municipal Utility Plants And Utility Property At A Regular Election In And For The City Of Seward On October 3, 2023 WHEREAS,the Seward City Charter may be amended by proceedings commenced by the vote of four members of the council; and WHEREAS, Seward City Code 4.05020(c) states, "A resolution is required to place a proposition on the ballot for the voters and must be enacted at least 53 days or more before a regular election, and at least 60 days or more before a special election; and WHEREAS, the amendment to Charter 13.4, if approved by the city's qualified voters, will amend the approval percentage requirement from 60% to a majority which is required to dispose of municipal utility plants and utility property; and WHEREAS,at least four members of the council have determined it is in the best interests of the city and its residents that the Charter amendment be put in forth to the City of Seward qualified voters. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. The City shall submit the following proposition to the qualified voters of the City at the October 3, 2023, regular city election: Proposition No. 2 Seward City Charter Amendment Shall the City of Seward Charter Chapter 13.4 be amended to read as follows: (new language is underlined and bolded, and deleted language is men 13.4. Disposal of municipal utility plants and utility property. The council may sell, lease or otherwise dispose of a municipal utility or of property and interest in property used or useful in the operation of a utility only after a proposition to do so is approved by three fifths a maiority of the electors of the city voting on the proposition. 213 CITY OF SEWARD,ALASKA RESOLUTION 2023-088 Proposition No. 2 Yes No A yes vote approves amends the approval requirement language. A no vote retains the approval requirement language. Section 2. The amendment set forth in Section 1 shall become effective upon its approval by a majority of the qualified voters voting on the question at the October 3, 2023 regular election. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of July, 2023. THE CITY OF SEWARD ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 214 Resolution 2023-089 : Submitting The Question Of Selling The City Of Seward Electric Utility To The Qualified City Of Seward Voters At A Regular Election In And For The City Of Seward On October 3, 2023 Documents: • Agenda Statement • Resolution 2023-089 215 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-089: Submitting The Question Of Selling The City Of Seward Electric Utility To The Qualified City Of Seward Voters At A Regular Election In And For The City Of Seward On October 3, 2023 Background and justification: With less than 3,000 electric meters on its system, the City of Seward's Electric Department has limited resources, making it difficult for the utility to consistently invest in new infrastructure, system maintenance, technology, and customer-focused programs and services. In addition to the financial limitations, Seward's small number of customers and meters will make it difficult for the City to maintain electric rate stability as necessary investments are made in the areas mentioned above. A larger electric utility with thousands more customers and meters will be able to spread expenses across its entire customer base, thereby ensuring more stability in customer rates. On June 12, 2023; the Seward City Council directed the City Clerk to solicit applications from the public in order to create an Ad Hoc Committee which will explore the requirements associated with rebuilding the Electric Utility. There is a recognition that this effort will be needed, regardless of whether the Electric Utility is sold in the near future, or not. A Special Election was held on May 2, 2023 and 58.4% of the voters were in favor of selling the Electric Utility to Homer Electric Association. Based upon this, City Administration believes that the majority of voters are in favor of selling the utility. With the forthcoming regulatory requirements, increasing costs of doing business, and desire for expanded programs that are available through selling to a larger utility, City Administration recommends placing the proposition to sell the Electric Utility to Homer Electric Association on the ballot for the Regular Election in October 2023. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and encourage future development." Strategic Plan: 13.3 Utilities Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): 0 Creates revenue in the amount of: $ 216 Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund (✓): General SMIC x Electric Wastewater Boat Harbor Parking Water F1 Healthcare Motor Pool Other Note: amounts are unaudited Available Fund Balance $ Finance Director Signature: No Fiscal Impact Attorney Review x Yes Attorney Signature: Not Comments: applicable Administration Recommendation x Adopt Resolution Other: 217 Sponsored By: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-089 A Resolution Of The City Council Of The City Of Seward,Alaska, Submitting The Question Of Selling The City Of Seward Electric Utility To The Qualified City Of Seward Voters At A Regular Election In And For The City Of Seward On October 3, 2023 WHEREAS, the City of Seward owns and operates the electric utility with approximately 2,900 meters and limited financial resources; and WHEREAS, the financial burden associated with increasing technological demands, completing infrastructure improvements, meeting more stringent industry standards and attracting and maintaining qualified employees, has led to the City Council's consideration of selling the City's electric utility; and WHEREAS, it is in the public's interest to provide consumers with safe and reliable electric service along with reasonable rates and value-added programs and services while, also managing the City's assets for the long-term benefit of the citizens of the City; and WHEREAS, Seward City Charter 13.4 permits the council to sell, lease or otherwise dispose of a municipal utility or of property and interest in property used or useful in the operation of a utility only after a proposition to do so is approved by the electors (voters) of the city voting on the proposition. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. The City shall submit the following proposition to the qualified voters of the City at the October 3, 2023, regular city election. Proposition No. 1 Sale of Seward Electric Utility Shall the City of Seward sell the Seward Electric Utility with the negotiated terms and conditions previously approved by City Council that are contingent on voter approval? Proposition No. 1 Yes No A yes vote approves the sale of the electric utility. A no vote means the City of Seward retains the electric utility. 218 CITY OF SEWARD,ALASKA RESOLUTION 2022-089 Section 2. This Resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th day of July, 2023. THE CITY OF SEWARD ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk 219 New Business Discussion Item: Discuss Timing Of Bond For Public Works Facility Documents: • Agenda Statement for Discussion • Agenda Statement for Bond Resolution • Resolution 2023-XXXX • Engineer's Estimate • SCC 4.05.020 220 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis, Acting City Manager Subject: Resolution 2023-XXXX: Submitting The Question Of Authorizing The Issuance Of General Obligation Bonds In a Principal AmountNot To Exceed Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406) To Finance the Construction of a New Public Works Facility To The Qualified Voters Of The City Of Seward At A Regular Election In And For The City Of Seward On October 3, 2023 Background and justification: The current Public Works Facility is past its useful life and does not meet the needs of the community or the staff operating in the department. Since 1984, relocation of the Public Works Facility has been discussed by City Staff, the Planning and Zoning Commission, the Seward City Council, and the entire Seward community. Construction of a new Public Works Facility is listed on the City of Seward's 2023-2028 Capital Improvement Plan. The Municipal Land Use Plan has identified the parcel where the current Public Works Facility is located as desirable for residential development. Under provisions of Alaska Statutes and the City Charter, the City of Seward may incur general obligation debt only after a bond authorization is approved by a majority of those voting on the question at a regular or special election. Proposition No. 3 Public Works Facility Bond Shall the City of Seward incur debt and issue general obligation bonds in an amount not to exceed Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406) for the purpose of paying costs of construction of a new Public Works Facility together with related capital improvements? Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 1.3.4 Public Facilities and Services Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: S 0 This legislation(✓): 0 Creates revenue in the amount of: $ 221 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 Water Healthcare Motor Pool Other Note:amounts are unaudited Fund Balance/Net position—unrestricted/unassigned $ Finance Signature: Attorney Review x Yes Attorney Signature: I Not applicable Comments: Administration Recommendation eApprove Resolution Other: 222 City Council Agenda Statement Meeting Date: July 24, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Discuss Timing Of Bond For Public Works Facility Background and justification: The City of Seward is in the process of design and engineering for the construction of a new Public Works Facility. City Council recently approved moving towards the 65% design phase. The goal is to complete the design process by March 2024. Completion of the 35% design provided an engineers estimate of $21,852,406. As we get closer to the completion of the design work, the project contingency will continue to decrease as well,leading to a closer estimate of the actual cost of construction. In order to construct the new Facility, the City will need voter approval to obtain General Obligation Bond funding. The placement of the provision on the ballot must occur 53 or more days prior to a regular election. The financial analysis of Seward's property tax base and the bond amount would require the following increase to property tax: "The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and interest on the Bonds will be One Million Five Hundred Ten Thousand Seven Hundred Fifty Dollars($1,510,750), or a 3.53 increase in the mill rate(From 3.84 mills to 7.37 mills, equal to an increase of$353 per$100,000 in property value)or the approximate equivalent of 7.5% sales tax." Based upon this analysis, City Administration requests direction from Council on whether to place the proposition on the October 2023 ballot, or whether to wait until the design effort is completed and continue pursuing external funding mechanisms which would offset the total project cost. 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: S 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 223 Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund(✓): General SMIC Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance $ Finance Director Signature: Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation Adopt AM x Other: Direct City Manager to wait on placing the proposition on the ballot until a later date and continue pursuing external funding mechanism. 224 heard Task Schedulr ouranen lscan Fnisn gn,4wraa rt 4u.ar Intl Q.uN.r Srd 4u.4u,raa Kt 4u .. ., Sun 3J A da nor des lan hb Mar � lun 1J � tex Fror 6ec mee i.:l v...i. via.,,.",l..n i•:A•:. r ... 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Fri i:l,5ha :r ':I vl.:: Fv.rR•Conmarh c A'.. .. ::i913j Fri c 1_q:_y �i # :- )a R�;.r.O.x FciBJ dar M.r_18:'•i M.r_�i8::{ P.ofeROutl«Sid+31.8 ]S Can.truclion:c d:.s l:,.r.:rJ la d.Xs Tu•yla]:A Mr-g1L:,d toectruellm Contracl.4wrdkd rr/6 3G r--L:her 13T' A.r T—S:?:sq T,.g+r:r.F torestru uon MP sh 3§ :Ir h.ne ejn J.y: N.J y.a5:5 -ter q_ SubstantlalCanPlelfon 3eay Wed Vg1a5 Wed n19; inbstanU•I C—pledon�ti! =A ❑.e•nu! 4 wily wad V,5nk W.d Vl$1.k Sloe auk}7 225 Sponsored By: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-XXX A Resolution Of The City Council Of The City Of Seward,Alaska, Submitting The Question Of Authorizing The Issuance Of General Obligation Bonds In a Principal Amount Not To Exceed Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406) To Finance the Construction of a New Public Works Facility To The Qualified Voters Of The City Of Seward At A Regular Election In And For The City Of Seward On October 3, 2023 WHEREAS, the current Public Works Facility is past its useful life and does not meet the needs of the community or the staff operating in the department; and WHEREAS, since 1984, relocation of the Public Works Facility has been discussed by City Staff, the Planning and Zoning Commission, the Seward City Council, and the entire Seward community; and WHEREAS, construction of a new Public Works Facility is listed on the City of Seward's 2023-2028 Capital Improvement Plan; and WHEREAS, the Municipal Land Use Plan has identified the parcel where the current Public Works Facility is located as desirable for residential development; and WHEREAS, the estimated cost of a new 24,494 square foot public works facility is $21,852,406; and WHEREAS, under provisions of Alaska Statute, a municipality may incur general obligation debt only after a bond authorization is approved by a majority of those voting on the question at a regular or special election; and WHEREAS, Alaska Statute 29.47.190 requiring adoption of a bond authorization ordinance to incur general obligation debt is not a limitation on the authority of a home rule municipality to incur general obligation debt; and WHEREAS, Chapter 11.1 of the Seward City Charter requires that the city council authorize bonds for capital improvements subject to voter ratification; and WHEREAS, Section 2.15.010(A) of the Seward City Code authorizes the city council to take action by resolution; and WHEREAS, it is in the best interest of the City of Seward to submit the question of incurring debt to the voters at the October 3, 2023 regular city election. 226 CITY OF SEWARD,ALASKA RESOLUTION 2022-XXX NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. It is hereby determined to be for a public purpose and in the public interest of the City of Seward (the "City") to incur general obligation bonded indebtedness in an amount not to exceed Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406), for the purpose of paying the Costs of Construction of a Public Works Facility and related capital improvements (the "Facilities"). Section 2. "Costs of Construction" means all costs paid or incurred by the City in connection with the acquisition and construction of capital additions, improvements and betterments to and extensions of the Facilities, and the placing of the same in operation, including without limitation paying all or a portion of the interest on the indebtedness or any portion thereof issued to finance the costs of such improvements during the period of construction of such improvements and for a period of time thereafter; paying amounts required to meet any reserve requirement for the fund or account established or maintained for such bonded indebtedness; paying or reimbursing the City or any fund thereof or any other person for expenses incident and properly allocable to the acquisition and construction of such improvements and the placing of the same in operation; and all other items of expense incident and properly allocable to the acquisition and construction of such additions and improvements, the financing of the same and the placing of the same in operation. Section 3. The City is authorized to borrow the sum of Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406)to finance the Facilities described in Section 1, and the borrowing shall be evidenced by the issuance of general obligation bonds of the City. The full faith and credit of the City is pledged for the payment of the principal and interest on the debt, and ad valorem taxes shall be levied without limitation as to rate or amount, as necessary, to pay the principal of and interest on the bonds when due. Section 4. The City Clerk is hereby directed to submit Proposition No. 3 to the qualified voters of the City at the October 3, 2023, regular city election substantially in the following form: Proposition No. 3 Public Works Facility Bond Shall the City of Seward incur debt and issue general obligation bonds in an amount 227 CITY OF SEWARD,ALASKA RESOLUTION 2022-XXX not to exceed Twenty One Million Eight Hundred Fifty Two Thousand Four Hundred and Six Dollars ($21,852,406) for the purpose of paying costs of construction of a new Public Works Facility together with related capital improvements? The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and interest on the Bonds will be One Million Five Hundred Ten Thousand Seven Hundred Fifty Dollars ($1,510,750), or a 3.53 increase in the mill rate(From 3.84 mills to 7.37 mills, equal to an increase of $353 per $100,000 in property value) or the approximate equivalent of 7.5% sales tax. Proposition No. 3 Yes No A yes vote authorizes the issuance of not to exceed $21,852,406 of general obligation bonds for the construction of a new Public Works Facility. A no vote does not authorize the issuance of not to exceed $21,852,406 of general obligation bonds for the construction of a new Public Works Facility. Section 5. The proposition must receive a majority vote of the qualified voters of the City voting on the question to be approved. Section 6. The City Council shall determine the particular work authorized hereby to be carried out in the event the proceeds of the bonds to be authorized are insufficient together with other money of the City to be used therefor to carry out all such work. Section 7. In the event the issuance of the bonds is ratified by the voters, the City is hereby authorized to borrow money in anticipation of the sale of the bonds and to issue bond anticipation notes. The amount of the notes to be issued from time to time and the time of their issuance, the form and other details of the notes and provisions for the sale thereof shall be fixed by the City Council by resolution or the City Council may delegate by resolution to the Mayor or the City Manager the authority to make all or any of the foregoing determinations. Section 8. The bonds to be authorized may be issued in one or more series. 228 CITY OF SEWARD,ALASKA RESOLUTION 2022-XXX Section 9. Section 3 of this Resolution shall become effective only if the proposition described in Section 4 is approved by a majority of qualified voters voting on the proposition at the regular municipal election on October 3, 2023. The remaining sections of this Resolution take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 24th day of July, 2023. 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+ E N N LU LU LLo g z O X Ca N O Ca Ca N (/) (/) M 2 — > N N LLJ U Y 0 M U U L \ \ / \ / co / 2 / § / 6 / % ƒ % < m w @ » 2 2@ y y # / 5 < » 2 § \ \ / ® LO w 2 r- _ k k cc \ ® LO % % \ w y y A4 a \ / ± a / ) / L \ \ % \ / / Q 5 00 2 § ^ / N 2 / < \ 2 2 / \ \ \ 2 \ e 3 / m \ z ® c 2 \ G e = � 2 / V) § 5 e E 2 0 E k 0 \ Q � � R / / 0co S U y c £ / / a / \ \ / E < 2 2 O = [ 2 5 / < $ \ \ / 0 2 ® 2 \ k L a < Eci 7 \ 7 2 < < / � / / / 0 / 7 7 / \ 2 2 \ d / \ / \ 7 0 3 3 m = 5 E S » -i » 3 = k O M ct� O O O O O O O O O O O O O O O I� N O LO LO LO O O O O O O O O O O O LO W p Q O N O c0 O M M M M M M M M LO N (0 O Ln CO a CY) O Q p � � W W ~ Q 0 O O O O O O O O O O O O O O O J O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O LO LO LO O O O O O O O O O O O LO M � N O c0 O CIO CIO CIO CIO CIO M M M LO N c0 O LO CO z 0 0 o O O O O O O O O O O O O LO LO LO O O O LO LO LO LO LO LO LO LO O J O N I— LO c0 LO N N N N N N N N LO Q N M C) m O O O O O O O O O O O O O O O Q O O O O O O O O O O O O O O O LLI O O O O O O O O O O O O O O O I— LO LO LO O O O LO LO LO LO LO LO LO LO O Q M N I� LO to N N N N N N N N LO N M O O O O O O O O O O O O O O O O O O O O O LO LO LO LO LO LO LO LO LO J O N LO LO O LO Q M N Lri M M J Q O O O O O O O O O O O O O O O Q O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O (� z Q LO O N LO Ln O Ln v' O N LO CO M N L Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q W W W W W W W W W W W W W W W W zi Q M z w a V) O U z O U � � J U_ U_ m LU L L U a > > NN L L Q O O N fN O Q Q c N a� V) O N N CQ ) m L co I�►j E CQ L '_' m N U U L L C m Q N N N1 a--+ +-+ -O -O U O L L O Q z o a Q Q o a U z u u z k �' *� a) N >, ci a c c c c c c c c c � W o W °� 0 o o O O O O O O O Q O Q Q 0 a — — — — — — — — — o O O cLa p p o LU LU Lo O CQ +--+ V) V) V) V) V) V) V) V) V)W W Ln g Lr2 V) (n (n M 2 m a 0 0 o m 2 / / i f f 2 \ m K ¥ < 2 2 \ ® # / 5 < » 2 w _ / \ \ � 0 0 o m M \ f \ C\� { ® 2 ~ ® y # a \ / / \ ® \ \ / / k ® y # \ ± o 0 \ O z \ ® / / co CD 2 / ® w w 2 \ % \ \ 2 \ e 3 O U z 2 e e z � \ / LU $ 2 % ± \ 2 / / < \ co E q p � E k �u g k m < � \ m E § / < $ \ % 7 > § 2 ® k ./ a ® \ q < < / LU j / k 7 7 \ \ / / \ O 3 3 m = E » k / \ \ / / $ % / 2 2 \ \ m o e < $ LO k 2 2 \ y y # / � < » 2 § \ w \ C \ \ \ / \ ® % ƒ ci ƒ - 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Ballot propositions and questions. A. All ballot propositions shall be stated in a concise and clear language to avoid verbosity and with the object of informing and advising the voter of the issue in a clear and forthright manner.All ballot propositions shall be stated in the affirmative and not the negative so that a "yes"vote will always mean that the voter approves of the affirmative of a position and not the negative;and a "no"vote disapproves the affirmative statement of an issue. Ballot propositions shall not be used to obtain a negative result by the casting of a "yes"vote. Simple sentences and words shall be used in preference to complex or compound sentences and words,with the object of making ballot propositions understandable to the average reader. B. The city council may direct the clerk to prepare a concise informational summary for the purpose of explaining complicated ballot propositions. C. A resolution is required to place a proposition on the ballot for the voters and must be enacted at least 53 days or more before a regular election,and at least 60 days or more before a special election. D. The city may prepare and distribute materials to advocate a yes or no vote on a proposition or question provided the city council enacts a resolution to appropriate funds to influence the outcome of an election in accordance with AS 15.13.145 and the expenditures are reported to the Alaska Public Offices Commission. (Ord. 527, 1984; Ord. No. 2022-017, § 1, 1-9-2023) Created: 2023-06-21 11:03:48 [EST] (Supp. No.26-1,Update 1) Page 1 of 1 306 Memorandum Date: July 24, 2023 To: City Council From: Kris Peck, City Clerk RE: Discuss current plans and Updates for Obihiro Exchange BACKGROUND: There will be 4 Obihiro High School students visiting Seward between July 29 - August 5, 2023 The adult delegation from Obihiro will be visiting August 25 - September 1, 2023 The adult delegation from Seward will be visiting Japan from October 21 - October 31, 2023 DISCUSSION ITEMS AND QUESTIONS: Itinerary Update: Chris in Obihiro informed us the dates for the Chrysanthemum Festival have not yet been set, but it would likely go into the first week of November. There is also the popular Food Valley Half-Marathon running event that Seward citizens are encouraged to run or attend. We are waiting for confirmation on exact dates of these events. Seward may need to adjust or expand our travel window to be able to include the Food Valley Marathon and the Chrysanthemum Festival. Chris in Obihiro also said we should work on setting out own framework for an itinerary such as spending 1-2 days in Tokyo upon arrival before flying on to Obihiro. From Obihiro a day trip to Kushiro would be feasible. If we can provide Chris in Obihiro a general idea of what we want to do, they will try to accommodate us. Seward Delegation Roster Update: Assistant City Manager Stephen Sowell will not be travelling. Kat Sorensen will be travelling to Obihiro as City Manager(Not as Chamber Director) We would like to add Karen Cooper from the Chamber of Commerce to take the Chamber vacancy, as well as take over for Sorensen on the Obihiro Planning Committee. Vice Mayor Osenga will not be travelling. We would like to send Deputy City Clerk Jodi Kurtz 307 Draft of Current Roster: (Eligible for airfare paid by the City of Seward) Kat Sorensen (City Manager) Randy Wells (Council Member) Bob Barnwell (Council Member) Jodi Kurtz (Deputy City Clerk) Karen Cooper(Chamber of Commerce) Map of Japan on Google Maps showing flight distance from Tokyo to Obihiro: 1 Asahikawa u- Ar5el1}'E': i A,�CeHbeB toll Kltr �Artuom Sapporo yokka-d Ji�ostok RpTert Partizansk ��1c Kuushiro NBoCTOK❑ °FIWTH3aHCK L � iR "a �- � ©bihiro Nakhodka Tomakomai 5 Haxop,rca s'J'= Hakodate a- Aotinori -osa'r..i� Hachiaohe _ Akita Morioka 5/elln'dai= Niigata'! W Q 'Aa ❑ ❑ Japan Narita International Tokyo Airport `Osaka C Yokohama bima`, tFR. r-,Nagoya • ] Okayama Kobe; Go gfe ac 5'hl'koku Map data�2023 GoogPe TMap Mooility United States Terms Prieac Seed feedback 308 Seward Electric Utility Ad Hoc Committee July 17,2023 Meeting Report and Requests written by Lynda Paquette Ristine Casagranda was voted chair and Lynda Paquette was voted vice-chair. Kelli Hatfield offered to be the secretary for the committee. We will meet every Monday when there is no Council Meeting at 7 PM in Council Chambers. We will coordinate with Clerk's office to notice our meetings and provide Council reports via the Clerk. We didn't set a frequency for our reports, but we will be an active committee, and we suspect you'll hear from us frequently. We will meet for two hours and notify the Police Dispatch office when we finish. We used the Ad Hoc Agenda that the Clerk presented. We discussed the binder on Utility Background provided by Rob and the Memorandum regarding the Ad Hoc Committee Meeting Information provided by the Clerk. We understand that our term is open-ended. However, these deliverables are timely, and we hope to produce them quickly. We are now a board of nine; we understand we need five people for a quorum. We have come up with the following requests: 1. We want Rob Montgomery to attend our meetings. We were surprised he was not therefor our first meeting. He is critical to our success. 2. We want to modify our mission statement: a. To research and compile the costs of operating(strike "rebuilding") Seward's electric utility to successfully meet future financial and regulatory challenges through (strike "expanded") staffing and regular system and technology investments while striving to maintain competitive rates and system reliability. <Grammarly cleaned some of the wording up, but the only substantive changes are changing "rebuilding"to "operating"and removing the word "expanded"before "staffing.">(We are concerned about the apparent insistence on additional staffing. It seems like a foregone conclusion; we want to come to it ourselves.) 3. In the first three Deliverables, we would like to strike the word "additional." So they would now read: a. Cost estimates/benefits of the personnel as outlined in the organizational chart provided b. Cost estimates for the expanded office space required by the staffing c. Cost estimates for the vehicles, equipment, and supplies, as needed. A. The two additional deliverables would remain unchanged. 309 We have the following questions ( I apologize for the random order): 1. What is the current average cost per kilowatt? 2. Is the power factor measured? a. If so, are we billing for it? A. If not, why not? 3. What is the story of providing cruise ship power, and is there a future market for us? 4. What happens with street lights? Who pays for them or how are they billed? 5. What percentage of electric utility customers are inside vs. outside city limits? 6. What is the bulk power price? 7. What is the length of the contract with Chugach? We would also like to request the following documents: 1. Are there any rate case studies we can get copies of? 2. Can we get a copy of the audited final statement of the Enterprise fund? 3. Can we get a copy of the previous Electric Department budget and the proposed budget? 4. What is the current cost of our cyber security technology, and what more is needed? 5. Can we get a copy of the current Chugach contract? 6. We'd like to see reports that capture total purchases from Chugach (wholesale)for ten years 7. We'd like to see reports that capture total sales (retail)to customers for ten years. 8. We'd like to see the breakdown of Residential, Commercial, Industrial, etc. sales. 9. We want some wage studies and reports summarizing current staff salaries, benefits, and future salary projections. 10. We'd like to see the union contract. 11. We'd like to see job descriptions, both current and desired. This compilation summarizes our meeting and provides everyone with the list of materials we will need to move forward. Warmest Regards & Much Love, Lynda 310 July 2023 SuMo July August 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 2021 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 Day 9 10 11 12 13 14 15 7:OOpm CC Mtg 6:00 tmP&z (Council 7:OOZ Mtg Chambers) Cancelled 16 17 18 19 20 21 22 6:OOpm Cancelled- P&Z Work Session (Council 23 24 25 26 27 28 29 5:30pm CC Work Session (Water/Sewer Infrastructurd 7:OOpm CC Mtg 30 31 Aug 1 2 3 4 5 7:OOpm Seward Electric Ad Hoc Committee Council Calendar 1 7/18/2023 4:01 PM 311 August 2023 0 2 v{ August September 2023 SuMo TuWe Th 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 eetinQ 6 7 8 9 [Regular 11 12 7:OOpm Seward pm HPC CnmMittPP Electric Utility Ad Hoc pm HPC eeting ouncil 13 14 15 16 17 18 19 7:OOpm CC Mtg 6:OOpm P&Z (Council Work Session (Council i Chambers) 20 21 22 23 24 25 26 7:OOpm Seward Electric Utility Ad Hoc Committee 27 28 29 30 31 Sep 1 2 7:OOpm CC Mtg Council Calendar 2 7/18/2023 4:01 PM 312 September 2023 2023 Th September 2023 October September TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 1 2 3 4 5 6 7 3 4 5 6 7 8 9 8 9 10 11 12 13 14 1011 12 13 14 15 16 15 16 17 18 19 20 21 17 18 19 20 21 22 23 22 23 24 25 26 27 28 24 25 26 27 28 29 30 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Aug 27 28 29 30 31 Sep 1 2 3 4 5 6 7 8 9 Holiday-Labor 7:OOpm P&Z 12:OOpm PACAB Day 7:OOpm Seward Electric Utility Ad Hoc Committee 10 11 12 13 14 15 16 7:OOpm CC Mtg (Council 17 18 19 20 21 22 23 7:OOpm Seward 6:OOpm P&Z 12:OOpm PACAB Electric Utility Work Session WS Ad Hoc (Council Committee 24 25 26 27 28 29 30 7:OOpm CC Mtg Council Calendar 3 7/18/2023 4:01 PM 313