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HomeMy WebLinkAbout08282023 City Council Packet Seward City Council Agenda Packet Photo by Kris Peck Monday, August 28 2023 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska All-Am�en CITY COUNCIL MEETING AGENDA li 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,August 28 2023 at 7:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING (Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item) 5. APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of ConsentAgenda passes all routine items listed under Item 7. ConsentAgenda items are not considered separately unless a council member requests.In the event of such a request, the item is returned to the Regular Agenda) 6. SPECIAL ORDERS, PRESENTATIONS,AND REPORTS A. Proclamations and Awards 1) Proclamation for Delegation from Obihiro, Japan......................................Pg. 5 2) Selection of Five Seward Citizens to Join Delegation to Travel to Obihiro, Japan..Pg. 6 B. City Manager Report............................................................................Pg. 25 C. City Clerk Report -None D. City Attorney Report -None E. Other Reports and Announcements-None F. Presentations—None 7. CONSENT AGENDA(also marked with asterisk*) A. Minutes of Preceding Meeting 1) *Approval of the August 14, 2023 City Council Regular Meeting Minutes......Pg. 69 B. Introduction of Ordinances City Council Meeting Agenda 8-28-2023 11 P a g e 1) *Introduction of Ordinance 2023-020: Amending Seward City Code Title 12 — Building And Construction As Part Of The City's Recodification Project ........................................................................................Pg. 76 C. Resolutions on Consent Agenda 1) *Resolution 2023-101: Authorizing The City Manager To Approve The Emergency Repair Of The Fire Department Water Main Line In The Amount Of$39,400 And Appropriating Funds................................................................Pg. 123 8. PUBLIC HEARINGS 1) Resolution 2023-096: Authorizing The City Manager To Enter Into A Consent Assignment To Breeze Inn, LLC, To The Lease Agreement L04-096 With Juris Mindenbergs, For Lot 313, Block 1, Marina Subdivision, City of Seward, Kenai Peninsula Borough Plat 2005-8, Seward Recording District, Third Judicial District, State Of Alaska. To amend Article 3 And Extend The Term Of The Lease For 18 Years And To Add Two Five Year Options To Extend...............Pg. 130 2) Resolution 2023-097: Approving Lease Amendment No. 1 With The United States Of America Acting By and Through The Secretary Of The Army....Pg. 186 3) Resolution 2023-098: Approving the Terms of the Real Property Exchange Agreement between the City of Seward and the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska and a Replacement Lease Agreement Between the City of Seward and the United States Coast Guard for Property at 1507 X Float Road and authorizing the City Manager to Sign all Documents Required to Complete the Agreement............................Pg. 234 9. UNFINISHED BUSINESS A) Resolutions Requiring Public Hearing 1) Resolution 2022-096: Recommending Kenai Peninsula Borough Approval of the Preliminary Right of Way (ROW) Acquisition Plat for the Seward Airport Located in T 1N& I R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known as the Seward Airport, Physical Location, 2310 Airport Road; Acquiring and Replatting Various Legals Located in Sec 34, 35, 2 & 3, Seward Meridian SW (This resolution previously had public hearings and was postponed on September 12, 2022, October 24, 2022, and January 23, 2023).............Pg. 257 10. NEW BUSINESS A. Resolutions—None B. Action Memoranda City Council Meeting Agenda 8-28-2023 2 1 P a g e 1) Action Memorandum 2023-013: Approving the City of Seward 2024 Legislative Priorities and Congressionally Designated Spending List.....................Pg. 271 C. Other New Business 1) Disetiss the Agenda For-mat for-Citizen Comments and Publie 14ear-ing Comments Clerk's Note- The Mayor requested this item be moved to the September 25, 2023 Council Meeting 11. INFORMATIONAL ITEMS AND REPORTS A. Boards and Commissions Minutes—None B. Other Items 1) Hyper Financials......... ..............................................................Pg. 300 2) Seward Electric Utility Ad Hoc Committee Minutes from August 7, 2023...Pg. 302 12. CITIZEN COMMENTS (There is no sign in for this commentperiod. 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 8-28-2023 3 1 P a g e PROCLAMATION WHEREAS, on November 20, 1967 the City of Seward passed a resolution to declare Obihiro, Japan as its Sister City; and WHEREAS, in March 1968 this Sister City relationship was officially recognized by Sister Cities International; and WHEREAS, since 1967 both communities have participated in many cultural exchanges which have deepened the relationship between our cities and our citizens; and WHEREAS, since 1973 our communities have sponsored annual student exchange involving high school students to experience each other's culture, lifestyles and families; and WHEREAS, in August 2023, the City of Seward welcomed four students from Obihiro for the 2023 student exchange; and WHEREAS, in August 2023, the City of Seward welcomed the 11 members of the adult delegation from Obihiro for the 55"Anniversary of our Sister City relationship; and, WHEREAS, in October 2023, Obihiro, Japan will welcome the City of Seward adult delegation. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby proclaim the week of August 28, 2023 to be SEWARD-OBIHIRO SISTER CITY APPRECIATION WEEK Dated this 28th Day of August, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor 5 • AMP Japan 55th Anniversary: Seward Delegation Applications Documents: • Carol Hatch • Henry West • James McLoughlin • Jessie Huett • Mary Beth Koster • Marylynn Barnwell • Patrick Lewis • Russ White • Samantha Allen 6 RECEIVED SISTER CITY 55"' ANNIVERSARY AUG 2 2 2023 VISIT TO OBIHIRO, JAPAN OFFICE OF THE APPLICATION CITY CLERK Applicant Name: C Date: , u Physical Address: c VN M- St, ��"�d A—_ 1 Phone: qQ . 72_7, �LQW E-Mail: QC}C�l _ l7✓1�1 In'� E' As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a "home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan (Seward's Port City) • While involved in this program,I will represent the City of Seward in the best possible manner. Upon returning to Seward, T accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and ■ Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant)that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signature: y` 1-2. (Applicant) (Date) Page 3 of 4 7 1) What are your special interests as they relate to Japan'? eon- f 1 -I�cho v- � u, f �►� 2) What community activities do you currently participate in or have you participated in in the past that may be relevant to this event? �� I J ._ - �J , � T yr"'� ate. 3) How well do you know the Ja anese language and/or culture? ,�-� r- vu�� � � cud amu� � askIlk 4) Why do you feel that you would be the best represcritati.ve of Seward to go to Japan'? 5) ,Do you have any potential conflicts with the proposed dates'' Il 6) Are you capable of fully funding your travel'? 7) Do you have a current, valid passport? You will be r-equired to submit a copy to the Clerk's Off ice if selected. 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past) l Aso he Page 4 4% 4 L.*`1 Q RECEIVED SISTER CITY 551" ANNIVERSARY AUG I.fi VISIT TO OBIHIRO, JAPAN 2023 OFFICE OF APPLICATION ITy LERI<E Applicant Name: Date: Physical Address: �' WN�SA14—eks/ M v G�J 166 Phone: ! / �'zC E-Mail: //�Aj Welr 64,1kct5 As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and While in Japan, I will be living in a "home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26,2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan (Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, Labeled with names and events, within two months of my return; and Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a Joint effort with other participant) that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signature; A3 (Applicant) (Date) Page 3 of 4 9 % 2 ) i \ \ 0 2 \ _ ) m c �mQ s ) _ $ = R > e 0 2 a = // ( � � : - CO / 0 § § / / \ § a .. \ k3 o \ § / / (D % � � ° m / 2 ) _ CO = E � k / E / = o k \ § 2 < § ® E & \ \ \ \ 0 � � \\ \ O \ 0) m ez 0m o \ / // ce % � » @ 4 g c >2 % / $ \ \ § k 0 f / \ / f ca S ® ¥ % > § q \ ( \ oc2 = fomR \ k � to \ 7 Co a) \ o m n c c R C.) k 2 � $ § G70 \ c e/ = = ® 0) m )\ \ Em b m k / } ± / \ \ � _7 ) \ E � % / / m F- / w \\ ) a)q § \ \ \ / E a) a) -0 7 2 0- 0 § 0 m £ o E o & 2 7 e 7 ' a $ o to 3 £ § p « f o7E $ _ \ & » \ \ \ 5 e \g q > $ / ° io $ ? e \ / 7 / > FEf $ C / kt \ SSE n — @ \ E \ c 2 c oc ® » m CO 0 § s 2 % \ ± £ G ( 5 £ o o — � \ \ SEZ $ �� � ® . 0 0 \ \ _ $ m \ 2 � f / / 2 7 a n � _ § _ * e = = — o o § 2 \ \ / E � ^ \ \ \ kk \ 'o \ \ � ® / / � 0C:a) o % ? 3 E \{ \ 2oE ae � 7d > a) » q > a = — _ _ 0 s 4 ° » \ co CL\ \ ff \ /\ \.0 \m / a>/ ) § t / / \% \ e e E0 N m _ _ K SISTER CITY 55" ANNIVERSARY VISIT TO OBIHIRO,JAPAN APPLICATION Applicant Name: James McLoughlin Date: 08/09/23 Physical Address: 903 4th Ave Seward AK, 99664 Phone: 520-419-9506 E-Mail: Jamesmcloughlin12939gmail.com As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me,and . I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and . While in Japan, I will be living in a"home stay"environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023,through November 2,2023;and This event may also include an additional visit to Kushiro,Japan(Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward,I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events,within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant)that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. 49-1ilz Signature: 08/09/23 (Applicant) (Date) RECEIVED AUG 14 2023 OFFICE OF THE CITY CLERK Page 3 of 4 11 1) What are your special interests as they relate to Japan? Japanese architecture has always intrigued me.As someone who grew up on construction sites I have always seen the beauty in building. Everything from the carpentry to the finer details of how a kitchen is styled comparatively to the U.S. I have had the privilege of traveling to several countries and throughout them I had the opportunity to stay with various host families in Peru, Laos,and the Philippines.To be able,for a few days,live within a new culture so vastly different from our own is special.To do that and recognize not only whats different about our cultures but how much much we share allows me to leave feeling connected to the world. 2) What community activities do you currently participate in or have you participated in in the past that may be relevant to this event? I recently participated in cooking and hosting the Potluck dinner for the Obih!ro High school at the library!It was a pleasure meeting the girls and Chris the adult chaperone that night.Chris and I got along well enough that he came to a bbq with my friends. For the last few years I have volunteered and participated in the majority of community events sponsored by the Chamber of Commerce.I have worked the Silver Salmon Derby,led games on the 41h of July and just have actively made myself a part of the community. I believe telling stories about the Salmon fish toss on the 4th or the giant prize winning fish of the derby(that of course I'll exaggerate by at least 3feet)would all be exciting to hear and only intrigue people further about our quirky little town. 3) How well do you know the Japanese language and/or culture? I know some basic vocabulary thanks to a language learning app on my phone. I do listen to the language actually quite frequently while watching various t.v.shows or movies(Admittedly with subtitles on of course).I have read and watched media about Samurai culture since I was a child,continuing to be in awe of their history as people and warriors. I've read that the Japanese of modern day are known for their polite,conservative and kind values. 4) Why do you feel that you would be the best representative of Seward to go to Japan? In the past five years,I moved my life here,proposed and got married to my wife here,and established my first real feeling of community outside of my own hometown in New York.I love Seward for all of those reasons and more,I believe I would express that energy and altitude as a representative. I work a day job as a Maintenance Specialist at AVTEC.My position requires me to work in all parts of the school,visiting all of the classrooms and certainly getting to know the various teachers and staff.I feel that this gives me insight to the school and what kind of opportunity it provides as a college!On top of that I've owned and operated my own small business in Seward for the last two years. 5) Do you have any potential conflicts with the proposed dates? No 6) Are you capable of fully funding your travel? Yes 7) Do you have a current, valid passport? You will be required to submit a copy to the Clerk's Office if selected. Yes 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past?if so,when? No Page 4 of 4 12 _ _ SISTER CITY 55'h ANNIVERSARY VISIT TO OBIIIIRO, JAPAN APPLICATION Applicant Name: �QsSle, Date: 5 'Z62Z Physical Address: `�'o"?� b Phone: � � D E-Mail: e S�c•'n\,i kA_-te,aYMQ..t, •CVA As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a"home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26,2023,through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan(Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant)that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signature: 15 k(Applicant) (Date) RECEIVED AUG 14 2023 OFFICE OF THE CITY CLERK Page 3 of 4 13 1) What are your special interests as they relate ettAofnJapan? V \. di ► - 2) What community activities do you currently participate in or have you participated in in the past that may be relevant to this event? Oat �,ty4� �.o, Aew xnd- P , .��e g 4en ayyv m,u,,M vo 3) How we do y know the Japanese language and/or culture? v&I V�,tLlc 4) Why do you feel that you would be the best representative of Seward to go to Japan? Gvy- c. l;cVWW �X- aA,- w��4,�� JXW". WW 5) Do you have any potential conflicts with the proposed dates? "ll b) Are you capable of fully funding your travel? T� 7) Do you have a current, valid passport? You will be required to submit a copy to the Clerk's Office if selected. )I',- 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past?If so, when? Page 4 of 4 14 SISTER CITY 55"' ANNIVERSARY VISIT TO OBIHIRO, JAPAN APPLICATION Applicant Name: W `AOLI Date: 8( !,9 12-3 Physical Address: 15 2.4 5ecov-L A Ve Se .v� Phone: 6 0�"� �ZZ — �- !23 E-Mail: yy%A r� he V_06+QLQ qa W .Cd k, As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a"home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023,through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan(Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant) that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. l hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signature: (Applicant) Date) Page 3 of 4 15 1) What are your special interests as they relate to Japan? 11 e So vMQ I- A-i +ed 2 fa5Ufc 1+-U/C Vik '�irP ®�j �..,1rp S-KcCIA c4 tiM` � C 2 S Vila v C pc�i� ![.c �i v� 1 ti -�-p Y^c s ,ti. �-p 1/�••6v' ` .s �-v� v, S vL '5£e Ve,CA �0 2) What commun`"'Ei y activities I you currently participate in or have you participated in in the past that,��r�C may be relevant to this event? -bC�. q�- c.�r r w-� _� ��v �^'1�' trv+ �j E r- D t� 't J S ca c�•�� i S ►C , C ( v �3 . 1: r- w— s o v✓ e inn to r ' "ke M 'A fc^,l V- �c c� (( L CNN& cnn �- �CaV , 1Q.nce � CA. ��� L9e--J C'C'Lod 3) How well do you know the Japanese la`n-gu�age and/or culture? I f ) 1 „J `�vac J \/ 'SC? l rr-C v ��j ce-� 4i kk of, V- e zcs- 5 �-o 6V I Vfe - 4) Why do you feel that you would be the best representative of Sewar to go to Jap ? �— �- � ,.� off- 1 � v e V,g - c a`�c 6- ,�" S ,:? cl 3 1 a vtd ( ) Do you have any potential conflicts with the proposed dates? W t V-O 6) Are you capable of fully funding your travel? I �� 7) Do you have a current, valid passport? You will be required to submit a copy to the Clerk's Office if selected. 2S 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past? If so,when? lv AA II 0 . 415 a i LA) r. J 1-0 �c� - �`I�t� ��P K `��� �i�d � "I e f •f� [?,a -1,. o C �,,; ha�. >a r i c l 'f�nP 5 w Page 4 of 4 � ,,.� [�vl�cQ � � i - � +�� ui�r ,f..a) RECEIVED SISTER CITY 55tei ANNIVERSARY AUG Z.7 2M3 VISIT TO OBIIHRO, JAPAN OFFICE OF THE CITY CLERK APPLICATION Applicant Name: Riqe-417n 6ar-11W'C,& Date: 0- 17-2 3 Physical Address: -0 J&Ug--� `c4 Dry ye , SRwav-J Phone: 907 -5 rL�-09 Q 5 E-Mail: m 1 b a r n w-P-10 a 49 yna1 1.. Co-n4 As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a"home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro,Japan (Seward's Port City) • While involved in this program,I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events,within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant)that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signature: 0,T 17-,23 (Applicant) (Date) Page 3 of 4 17 MaryLynn Barnwell Japan City Exchange Application 1) What a,rA your special,interests as they relate to Japan? I am interested in helping with the continuation of the Seward-Obihiro sister city exchange. While hosting the Japanese exchange students this month, I accompanied Chris, the student supervisor, to the First Friday Art Event. As I introduced Chris to various Sewardites, I was amazed how many people in our little town have been favorably touched by this sister city exchange. Various business owners greeted Chris in Japanese and talked with him about when they or their children visited Obihiro. Sewardites still keep in touch with people they met in Obihiro. It turns out Chris's supervisor in Japan was an exchange student and several people are excited that she will be returning to Seward. After witnessing these energized conversations,I hope to reinvigorate this wonderful program. 2} Mat ommunity activities d!2 you currently 12afficipate in or haye ygu participated in in the past that may be relevant to this event? This summer my husband and I hosted the Japanese Exchange Students in our home. I also plan to participate in the public events while the adult delegation is in Seward. 3) How well do you know the Japanese language and/or culture? In anticipation of hosting the Japanese Exchange Students, I learned a few Japanese words and am continuing with a daily Japanese lesson. I have read about Obihiro and the Japanese culture. In addition I have lived and worked in Asia for two years as a teacher in an International School where I received numerous cultural training classes. 4) Why d g yo r i I I've lived year round in Seward for 25 years. I'm active in several volunteer groups taking a leadership role as board president of the Seward Nordic Ski Club. I am a retired school teacher and have lived overseas several times making me a cultural sensitive and aware individual. In addition, my husband will be going to Japan as in City Council Representative. Hosting a married couple will be easier. 5)_Do you have any potential conflicts with the proposed dates? No 6)Are you capable of fully funding your travel? Yes 7) Do you have a current, valid passport? Yes 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past? No 18 SISTER CITY 551h ANNIVERSARY VISIT TO OBIHIRO, JAPAN APPLICATION Applicant Name: Patrick Lewis Date: 08/19/2023 Physical Address: 33903 Laughlin Way,Seward AK 99664 Phone: 509 280 7125 E-Mail: patricklewis152@gmail.com As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a "home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan(Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant) that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. 1 also understand that medical, liability, and/or travel insurance are my responsibility. Signature: 08/19/2023 (Applicant) (Date) Page 3 of 4 19 1) What are your special interests as they relate to Japan? As a proud Seward resident,it would be an honor to visit the sister city of Obihiro.When I was in college in Washington,I was an RA and on-campus mentor and worked closely with Japanese exchange students.I would be excited about the opportunity to see the other side of the cultural exchange.I am also a historic preservation professional in Seward,working with local communities to help preserve their history and it would be interesting to exchange the knowledge of historic preservation with Obihiro and see how their agricultural history and relative isolation has shaped their culture and community. 2) What community activities do you currently participate in or have you participated in in the past that may be relevant to this event? As an avid runner in the Seward community,participating in Mount Marathon and organizing the Seward Trail Running Club, I would be very interested in going to Obihiro and participating in the Food Valley Tokachi Marathon. As mentioned,I also have a personal and professional commitment to historic preservation that would be interesting to showcase in Obihiro. 3) How well do you know the Japanese language and/or culture? I'm not familiar with the language,but I have some knowledge of the culture and share a strong passion for baseball and pop music.I feel that there are many things that connect our two cultures and community,but I am excited to learn more about Obihiro and the cultural differences that matte our two cities unique. 4) Why do you feel that you would be the best representative of Seward to go to Japan? As a year-round resident in Seward that participates in the community at several levels-recreationally and professionally-I think I would be a great example of a Sewardite to visit Obihiro.In addition to representing Seward,I can serve as a representative of the National Park Service in Alaska.I am excited to participate in all aspects of the exchange,experience the culture,and be an outstanding representative of our community abroad. 5) Do you have any potential conflicts with the proposed dates? No G) Are you capable of fully funding your travel? Yes 7) Do you have a current, valid passport? You will be required to submit a copy to the Clerk's Office if selected. Yes 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past? If so, when? No Page 4 of 4 20 SISTER CITY 551h ANNIVERSARY VISIT TO OBIHIRO, JAPAN APPLICATION Applicant Name: Russ White Date: 8/10/2023 Physical Address: 14000 Shady Large, Seward, AK 99664 Phone: 978-503-4640 E-Mail: rwhite@cityofseward.net As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a "home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro,Japan (Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and • Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant) that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. 1 also understand that medical, liability, and/or travel insurance are my responsibility. Signature: /OZ � Gf)�� 8/10/2023 (Applicant) (Date) Page 3 of 4 21 1) What are your special interests as they relate to Japan? I have interest in the food, history and general culture. I find the community culture fascinating campared to a culture centered more on individuality in the west. I'd love to try as many new things as possible, food, sports, games and exploring a new area. 2) What community activities do you currently participate in or have you participated in in the past that may be relevant to this event? I am the Program Coordinator for Parks and Recreation and may be able to gain some more programming and events from making connectiosn with our sister city. I also have worked as a kayak guide for nine years so understand what it's like showing someone your place as a guide and being a good guest on a tour. 3) How well do you know the Japanese language and/or culture? I know very little of the language, just basics like hi and thank you. I know a little more about their culture having lived close by in South Korea and Taiwan for two years. 4) Why do you feel that you would be the best representative of Seward to go to Japan? don't know if 1'd be the best, but I think I would be a benfecial representative. I play a large role in community events, organizing and running them. I've been a tour guide, so I feel I know and am connected to the city of Seward very closely. I am a kind individual that would represent Seward in a positive manner. 5) Do you have any potential conflicts with the proposed dates? No 6) Are you capable of fully funding your travel? Yes 7) Do you have a current, valid passport? You will be required to subinit o copy to the Clerk's Office if selected. Yes 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past? if so, when? No Page 4 of 4 22 RECEIVED SISTER CITY 55A ANNIVERSARY VISIT TO OBIHIRO, JAPAN AUG 2 2 Z093 APPLICATION OFFICE of THE CITY CLERK Applicant Name: tin�A,`�t�G, �j/ Date: WJ I �2 i Z� -- Physical Address: y 2 S a vls_ ��� f - 19 t Phone: (P G' � S C1 E-Mail: CA��-e n 000 q m-,A As an applicant for this event, I understand and accept the following: • There are some financial obligations relating to travel and gifts that will be borne by me, and • I am at least 18 years of age; and • I am willing to accept the time commitment involved, including attending a mandatory orientation session prior to travel; and • There may be other scheduled activities sponsored by the City of Obihiro which require my future participation in order to promote the event; and • While in Japan, I will be living in a "home stay" environment with a Japanese family as their guest; and • The dates of this event will be approximately October 26, 2023, through November 2, 2023; and • This event may also include an additional visit to Kushiro, Japan (Seward's Port City) • While involved in this program, I will represent the City of Seward in the best possible manner. Upon returning to Seward, I accept my commitment in this exchange program further involves me to: • Provide the City Clerk's Office with at least five (5) photographs of my experiences in Japan, labeled with names and events, within two months of my return; and Potentially share my experiences publicly by speaking at a community gathering, and/or writing an article about my experiences (possibly a joint effort with other participant) that may be distributed or published in a local newspaper; and • Review any materials provided by the City of Seward to familiarize myself with Japan and the area I will be visiting. I understand that the City of Seward does not cover medical or liability insurance for this exchange. I hereby waive on behalf of myself any liability responsibilities of the City of Seward for injuries or damages sustained in this exchange program. I also understand that medical, liability, and/or travel insurance are my responsibility. Signat : & 2 2 ` 1 3 (Applicant) (Date) Page 3 of 4 23 Samantha Allen sgallen00@gmail.com 609.513.9484 1) What are your special interests as they relate to Japan? A passion of mine is traveling with the purpose of learning. When I travel, I keep a map at the ready, language book in hand, and senses open to take in as much novelty as possible. As an athlete, the Food Valley Half Marathon is very exciting to me, either to attend or participate. Additionally, the skiing and mountains in Japan are so tantalizing. I would be awe-struck to see them. 2) What community activities do you currently participate in or have participated in in the past and may be relevant to this event? As Membership Coordinator with the Seward Chamber of Commerce, I've been instrumental in participating in and organizing many of Seward's beloved community events. I am a member of the Resurrection Bay Historical Society, and learned much of Seward's history from their Thursday library presentations. I've worked closely with Seward Prevention Coalition as their middle school Sources of Strength Coordinator, a position that's impacted me greatly and given me a closer connection with our community youth. I am also the board president of the Kenai Crewsers Rowing Club. 3) How well do you know the Japanese language and culture? I am eager to learn as much as possible about Japanese culture and language. 4) Why do you feel that you would be the best representative of Seward to go to Japan? My strong interpersonal skills, gentle-nature and respect for cultural nuances will allow me to connect with our Sister City beyond the spoken language. I am proud of Seward and eager to share the specialness of our town. Although I'm not originally from Seward, I've acclimated to our Alaskan culture in many regards and will serve as an accurate representation of someone who lives. works and plays in Seward. 5) Do you have any potential conflicts with the proposed dates? No. 6) Are you capable of fully funding your travel? Yes. However, if a scholarship was made available, I would surely apply. 7) Do you have a current, valid passport? Yes. 8) Have you ever attended a visit to one of our Sister City's as a delegate representing the City of Seward in the past? No. However, I did attend the Welcome Potluck for our Obihiro Student Exchange earlier this month and will attend the community potluck at the Branson Pavillon. 24 City of Seward Acting City Manager's Report August 28, 2023 Mayor McClure and Council Members, We have had talks with the DOC on jail issues. Had another successful Salmon Derby the chamber director will give you the totals at this meeting. The city has met with our Federal lobbyist on 8-7 to discuss possible future legislation and funding opportunities. The Central Treasury report is attached to the CMR, the 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 Description Amount CITY CLERK 8/17/2023SEWARD CITY TOURS LLC Shuttle service for 2023 Obihiro adult delegation during 55th Anniversary visit. 6,64800 FIRE 8/18/2023 UL LLC Annual Ladder and Pump Testing for our apparatus. 7,099.75 FIRE 8/17/2023 PROCOMM ALASKA Radio antenna purchase and install for additional radios atthe firehall. 8,988.00 FIRE 8/18/2023 METCO ALASKA LLC Repair to the street and sidewalk after replacing the water main atthe Fire Department. 15,500.00 FIRE 8/18/2023 METCO ALASKA LLC Repairs to water maim at Fire Station. 23,900.00 MIS 8/17/2023 STRUCTURED COMMUNICATION Cohesity storage device and support. 29,977.94 Page 3 of 3 Thank you, Norm Regis 25 Assistant City Manager Stephen Sowell ➢ Public Works Shop Project: Work continues on the 65% design. Based upon the direction from City Council at the July 24th meeting, we will await placing the GO bond on the ballot until the design process is completed. In the meantime, we will work towards 100% design completion and include this on the 2024 Legislative Priorities. External funding opportunities will be explored. ➢ CRW completed a comprehensive examination of the Library Facility with regards to the ongoing HVAC and plumbing issues. A copy of the Engineering ROM estimate for repairs is attached. Norm, myself, Doug, and Bailey met with CRW and R&M Engineering on Tuesday August 15th to review the report and required updates. A plan is being developed in collaboration with CRW on implementing all of the recommendations from the evaluation. ➢ Public Safety Needs Assessment: Thanks again to Taryn Oleson Yelle with R&M Engineering. The next phase is examining the location options and completing an engineering estimate of the construction cost. ➢ The Board and Commission Attendance Tracker is included in this report. ➢ Heat Loop Project: The final submission to DOE was completed on August 1st. 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. ➢ Norm and I met with our Federal Lobbyist Seb O'Kelley on August 7th to discuss City of Seward projects and items of note at the federal level which affect Seward. We will be putting together a draft schedule for the Spring 2024 visit to Washington, DC once the congressional calendar for next year is created. ➢ The 2023 Alaska Municipal League Local Government Conference Draft Agenda is attached. 26 ° L y ° O L } L) o ° _ cH o O N N O O Q w N w w Ln O U) CU U CU 0 0 H O M � O O O L Q L Ln 0 O I— A M M O Ln — N Q N fA H fA fA fA fA fA fA fA EiT Q N 10 E U) U) o N 7 CDL a) .° C\jC _ L cu N > C w z W O W ° a) z M 0) L ~ O Il- Ln O co q-t0) CD N a) z + Q O N M 0 Lo I— E U) a) W U EA (f} (f} O(f} EA (f} N(f} 0 i -O O LiJ j O +_ 0 O U Q Q O (B W o ° o L _ ~ ~ N CD (O U LO m Lo0 L' co L O E W O O � 00 N U) O - V) Q > a� a� Ln C N N q'i M — c U N U V J O d coa- VD, fA fA fA fA fA fA N N - J V 0 a-a E J O pw �o cu >,I a) L C U T- 0) N 0)Q Ln Ln Q ,a) cu 0 W oa o c � � rn �co � W cu 0 ° U n ? y O � � � � � � A O O O N Q z W N cu c0 L d •� � �o `� U) � QN LL Q LO 0 w co w co O � LLO 0 O O J (O O N O O M ---t Il- (B E L N N N N — 0) U) U) (B U)•� W fA fA fA fA fA fA fA fA ° _ O O N W O J 0 c Q O O O) O C C rl- O O O O O O U O Q (oM O Doco0 N > � � L(O co O °O N Lo M O a) V) 6o- fA ff} 6o- fA 6o- 6o-W E a) co ~ C C a) O 0 'Lp O � } C9 a°i c' •. 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Q o D c U� Y O a) (h ((7 U C O Cl) N Z E V O O a) 0O O O 0 O N T E � Uao C) a) O O O (6 U W (6 U U W 0 r -O (0 (6 E 0 w E m m y n � JQ W y E ai a�i ai O W BUD — = co of � � z � From: Ahlbera,Brenda To: 'Robert Dumouchel"; "Mark Robl"; "Mark Kirko"; "Jennifer Carroll"; 'Bryan Hawkins";Stephen Sowell; Doug Schoessler; "karlCabstormchasersmarine.com"; "onormanvc(abhotmail.com"; "Francis Norman"; "Mark Ball"; "Crystal Collier"; "Heidi Geagel";'Rachel Friedlander"; "Kachemak City Clerk";Cicciarella,Bob;Schultz,Eric; Marsh,Jon; Mathis,Robert;Clinton Crites; "nanwalek(&yahoo.com";"Gwen Kvasnikoff"; "vivian(aboortaraham.ora";"LowellPt";"micaCalstormchasersmarine.com"; "Anchor Kings"; "Anchor Point Senior Center"; "Anchor Point Chamber"; "Anchor Point Library"; "Chris Crum-Anchor Pt APC"; "Chris Platter-Anchor Pt APC"; Dawson Slaughter;dewhite55Calamail.com;ikmarshCalvmail.com; "Shafer. Broke-Anchor Pt APC"; thedrakesCabhorizonsatellite.com; "mark.robertsCabalaska.aov"; "Aviva Braun-NOAA Federal' Cc: Mayor Peter Micciche Subject: KPB Siren Project Update 08.07.2023 Date: Monday,August 7,2023 6:45:49 PM Attachments: imaae001.ona 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. Siren Project Update August 7, 2023 Good evening all: The siren replacement project is currently underway. Testing includes tones plus audio; adjustments are being fine-tuned to ensure that the audio messages such as "all clear" can be heard and understood. Our original schedule as listed below has had to change significantly due to logistic challenges, extending our timeline at least by one week. Of note, the siren install on Nash Road in Seward is still scheduled for August 17th under the temporary road closure permit. We will have to complete that one as previously coordinated with AK DOT, then return to finish the Homer area before heading back to the Resurrection Bay area. We sincerely appreciate everyone's patience and understanding as we tackle this project. Even with the delays, we're confident that this new system will answer many shortfalls. Feel free to share this message as appropriate. Smiles, 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 35 KENAI PENINSULA. BOROUGH 144 Nortli Ri nkley Street 17 45 L From: Ahlberg, Brenda Sent:Thursday, July 20, 2023 5:07 PM To: 'Robert Dumouchel' <RDumoucheI@ci.home r.ak.us>; 'Mark Robl' <mrobl@ci.homer.ak.us>; 'Mark Kirko' <mkirko@ci.homer.ak.us>; 'Jennifer Carroll' <JCarroll@ci.homer.ak.us>; 'Bryan Hawkins' <BHawkins@ci.homer.ak.us>; 'Stephen Sowell' <ssowell@cityofseward.net>; 'Doug Schoessler' <doug@cityofsewa rd.net>; 'karl@stormchasersmarine.com' <karl@stormchasersmarine.com>; 'pnormanvc@hotmail.com' <pnormanvc@hotmail.com>; 'Francis Norman' <fran@portgraham.org>; 'Mark Ball' <mball@svt.org>; 'Crystal Collier' <ccollier@svt.org>; 'Heidi Geagel' <cityclerk@cityofseldovia.com>; 'Rachel Friedlander' <citymanager@cityofseldovia.com>; 'Kachemak City Clerk' <cityclerk@kachemak.city>; Cicciarella, Bob <bCicciarella@kpb.us>; Schultz, Eric <ESchultz@kpb.us>; Marsh, Jon <JMarsh@kpb.us>; Mathis, Robert<RMathis@kpb.us>; 'Clinton Crites' <rcc rites @cityofsewa rd.net>; 'nanwalek@yahoo.com' <nanwalek@yahoo.com>; 'Gwen Kvasnikoff' <gwen@Chugachmiut.org>; 'vivian@portgraham.org' <vivian@portgraham.org>; 'LowellPt' <Ipcc@arctic.net>; 'mica @stormchasersma rine.com' <mica@stormchasersmarine.com>; 'Anchor Kings' <anchorkingswrestling@gmail.com>; 'Anchor Point Senior Center' <apsci@acsalaska.net>; 'Anchor Point Chamber' <info@anchorpointchamber.org>; 'Anchor Point Library' <anchorpointlibrary@gmail.com>; 'Chris Crum -Anchor Pt APC' <christinecruml@gmail.com>; 'Chris Platter-Anchor Pt APC' <cplatter28@gmail.com>; Dawson Slaughter<slaughterdawsonl@gmail.com>; dewhite55@gmail.com;jkmarsh@ymail.com; 'Shafer, Broke -Anchor Pt APC' <brokshafer@gmail.com>; thedrakes@horizonsatellite.com; 'mark.robe rts@alaska.gov' <mark.robe rts@alaska.gov>; Aviva Braun - NOAA Federal <aviva.bra u n @ noaa.gov> Cc: Mayor Peter Micciche <pmicciche@kpb.us> Subject: KPB Siren Project Update 07.20.2023 Siren Project Update July 20, 2023 The siren installation schedule has been updated (below). The contractor will be conducting a live audio test on each new siren as they are installed. We'll be adding a new siren in Homer off of Kachemak Drive and one in Anchor Point located at the solid waste transfer site (see notes below). Also, we will be rolling out a public outreach campaign through the end of August, reminding folks of the installs in their area. Thanks to our agency partners for helping with coordinated messaging to ensure that the public is aware of the tests per each location. Have a wonderful evening all, B Installation Schedule: July 24-25: Homer Harbormaster July 26-27: Homer Ice Rink 36 July 28-29: Homer Mariner Park July 31-August 1 : Nanwalek August 2-3: Port Graham August 4-5: Seldovia August 7-8: Homer Fish & Game August 8-9: Homer Bishops Beach August 9-10: Homer Northern Enterprises Boat Yard *NEW* August 10-1 1 : Anchor Point *NEW* Mailer sent to all property owners and flyers to be posted throughout the community August 14-15: Seward Nash Rd *temporary road closure* August 16-17: Seward Marine Industrial August 17-18: Seward High School August 18-19: Seward Harbormaster August 21-22: Seward Fire Station August 22-23: Lowell Point 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 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 KENAI PENINSULA BOROUGH 144 North Binkley Mwet Soldotna, Al iskj 99669 K� 37 Too - - - r - 70�o r _ z 700000 Q % Q 00 \ \ 2 \ \ Q 8 CoLnLn 77 \ \ \ Q % \ \ 2 \ \ Q 8 CA CA \ \ \ Q % Q Ln \ \ \ zz Q % ON � \ \ \ \ \ G G M \ 3 z $ $ o CA CAo $ - $ $ $ $ $ » » z » » z » » » » » » Q Q 8 8 � Cl) Cl) CA CA CA CA $ $ $ $ » » » z » » » » » » » Q Q % % 8 8 - $ $ $ $ $ $ re) o $ $ o » » » » » » » z » » z Q Q ■ 2 ■41 45 2 ■ 41 m � m - m ° $ $ $ $ m $ o $ o o ° » » » » » » I » z » zz � C) � C, � � $ $ o $ $ $ $ 0 0 0 0 » » z » » » » z zzz § § 0 _ � ( ul f 7 § E IN E § / � § 7 § § k � cr _m ( t 2 � = mom = e0 27 � # # = h = 2 . t E _ _ s o . _ £ i � " _ o = 2 o 0 0 0 _ © r o / o m 0) % % = 0 £ o f m = @ = = Jz � < mE > & & u = = m = ± � � I ± 22 Community Development Department Jason Bickling ➢ Jesse Lee Home Update: We received notification back from ADEC regarding the last sampling results. (letter and technical memo attached) They have found elevated levels of two chemicals that are above what is allowable (Arsenic and Chromium). They require the City to do further sampling in the surrounding areas to see what level of those chemicals "naturally" occur in the soil along with water testing. If those chemicals have a naturally occurring level in the area that is significant, then it may not require any more removal. If the occurrence of those chemicals in the surrounding area is not significant, then they are relating the elevated levels to the site contamination and additional material removal may need to occur. We have reached out to the Engineering group (KCI) for a quote for this further sampling that is required. We will keep you posted on the progress and will bring any expenditures before you. ➢ I attended the MGT 340 Crisis Leadership in Kenai on Tuesday, August 8t" Staff from the Borough, Kenai, and Soldotna also attended. This is part of the Incident Command System / Emergency Response education put on by DHS and FEMA. It was very helpful in my continuing education in how to manage the types of situations that I hope we never have to deal with. ➢ P&Z met on August 15t" to continue their Title 15 work. The main discussion on was sign code revision. There will be one more work session on that topic before bringing it before them for approval as a proposed ordinance. There was a smaller discussion regarding land use and Form Based Code. ➢ We are working on several code revisions for recodification, specifically in Title 16. ➢ The Cemetery Columbaria have been installed: 1 in the Odd Fellows portion of the City Cemetery and 2 in the American Legion Cemetery. ➢ The annual Municipal Lands Inventory and Use Plan review will be coming before the commission for its first Work session on September 19t" ➢ 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. 39 ➢ 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. ➢ 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. ➢ 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 community members that have questions about the development and use of their land and helping with applications. GIS Report: - Selena's last day in August 24. There will be a brief pause on the GIS work for the time Selena needs to move and get settled in. - Selena is currently looking into a utility network solution where the Public Works data and Fire Hydrants data could include water flow direction, analyses during emergencies, etc. - Selena is updating the Muni Land Plan's Map Atlas for this year's review — incorporating the last-minute edits that will be reviewed later when the PZ Commission has their annual review. - Selena is continuing work on the zoning map audit to coincide with Courtney's work that she did earlier for the zoning history. Most of this research is finished. However, she did ask the Borough if they had any additional information and is waiting to hear back from them. The mapping application is being worked on now. A future land use layer will be started soon and will be added to the online zoning map. The format of the zoning map printed versions will be updated after the above tasks are finished and will be reviewed later by PZ Commission. 40 � OF � � T THE STATE Department of Environmental Conservation OfA ASKA _ - DIVISION OF SPILL PREVENTION AND RESPONSE GOVERNOR MIKE DUNLEAVY Contaminated Sites Program ALAS�A 410 Willoughby Ave,Ste 303 PO Box 111800 Juneau,Alaska 99811 Main:907-465-5250 Fax:907-465-5245 www.dec.alaska.gov File No.: 2332.38.054 Hazard ID: 27559 August 11, 2023 Sent via Electronic Delivery Only Janette Bower City of Seward,Alaska PO Box 167 Seward,AK 99664-0167 i bower&6jt:o fs eward.net Re: DEC Approval Letter for the "DraftRemovalAction Report, Seward Orphanage Jessie Lee Home Building Demolition" report, dated February 2023 Dear Ms. Bower, The Alaska Department of Environmental Conservation (DEC) Contaminated Sites Program (CSP) recently received the "Draft Removal Action Report, Seward Orphanage Jessie Lee Home Building Demolition" report, dated February 2023, and received, via email on February 6, 2023. The report describes the field activities that occurred during June and October 2022. Field activities included the completion of contaminated concrete segregation and removal at the Balto building, the collection of new concrete waste characterization samples, and the removal of contaminated soil at the Jewel building boiler area and the Balto building boiler sump, fuel piping, and AST containment areas. Jewel Building Five confirmation soil samples were collected and analyzed for diesel range organics (DRO), residual range organics (RRO), volatile organic compounds (VOCs), and polycyclic aromatic hydrocarbons (PAHs). All results were below the laboratory's detection limit except for select VOCs. Select VOCs were detected at one-half(1/2) the laboratory's limit of quantitation (LOQ) which exceeded the DEC cleanup level for each respective contaminant. Balto Building Three primary confirmation soil samples were collected from the Balto Building excavation and were analyzed for DRO, RRO, VOCs, and Resource Conservation and Recovery Act (RCRA) metals in June 2022. Select samples were also analyzed for PAHs. All analytes were non-detect 41 City of Seward 2 August 11, 2023 except for select VOCs at 22SW-19-03, arsenic in all locations, and DRO in the northwest corner area (22SW-17-02 and 22SW-18-02). Select VOCs were detected at the laboratory's LOQ which exceeded the DEC cleanup level for each respective contaminant. An additional nine confirmation soil samples were collected in October 2022 and analyzed for the same contaminants as listed above. Soil samples from 22SW-21-12, 22SW-22-02, 22SW-25-12, and 22SW-26-12 (and duplicate 22SW- 27-12) exceeded the DRO migration to groundwater (MTG) cleanup level. Arsenic exceeded cleanup levels in all samples. Select VOCs and naphthalene were detected at the laboratory's LOQ which exceeded the DEC cleanup level for each respective contaminant. This report is approved. Additional soil samples should be collected from the locations where DRO and naphthalene exceedances were observed to confirm that natural attenuation has occurred, or groundwater must be investigated to confirm that contamination is not migrating to groundwater. Additionally, please provide more information regarding naturally occurring arsenic in the general site location to support the claim of naturally occurring arsenic at this site. The DEC generally requires multiple lines of evidence to determine if metal exceedances are the result of a release or are naturally occurring. Please refer to the enclosed technical memorandum for more information about metals at contaminated sites. Please contact me at (907) 465-5207 or julie.fix&alaska.gov if you have any questions. Sincerely, Julie Fix Project Manager Contaminated Sites Program Enclosure: 2018 Guidance for Evaluating Metals at Contaminated Sites cc: Andrea Carlson,ADEC, via andrea.carlson&alaska.gov Jason Bickling, City of Seward,via jbicklin cityofseward.net Todd Kastler, Kastler Consulting, Inc., via todd c&kcialaska.com 42 ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION DIVISION OF SPILL PREVENTION AND RESPONSE CONTAMINATED SITES PROGRAM Technical Memorandum Date: August 2018 Guidance for Evaluating Metals at Contaminated Sites I. PURPOSE The purpose of this technical memorandum is to provide guidance on evaluating metals that are commonly found in the natural environment but may also be present from anthropogenic sources at a contaminated site. The guidance includes: how to determine when metal sampling and analysis is required; considerations in obtaining background samples; establishing and comparing background concentrations to the site; determining cleanup levels for the site; and how to evaluate cumulative risk. Although, the primary focus of this technical memorandum addresses arsenic and chromium, the same approach may be employed for other naturally occurring inorganic metals. II. INTRODUCTION Arsenic, chromium and many other metals are naturally occurring throughout Alaska. The naturally existing concentrations of these metals are typically referred to as "background." However, these metals may also be present from anthropogenic activities. Anthropogenic is defined as "of human origin or resulting from human activity." For example, anthropogenic arsenic sources include naturally occurring arsenic sources altered or disturbed by human activity, e.g. mine tailings, mobilization from soil to groundwater via another introduced contaminant such as gasoline, as well as manufactured products which contain arsenic released into the environment. Arsenic is found naturally in two forms. Inorganic arsenic refers to arsenic atoms that occur in a pure, metallic form, or in compounds where they are bonded to other non-carbon elements (typically combined with oxygen, chlorine, and sulphur). Organic (i.e. carbon based) arsenic compounds contain covalently bonded arsenic atoms combined with carbon, oxygen, and hydrogen. The toxicity of arsenic depends very heavily on its form. Inorganic arsenic (arsenite, arsenate) is considered to be most toxic, whereas organic (methylated) forms of arsenic are common metabolites of the human body and are much less toxic. The soil cleanup levels listed in 18 AAC 75.341 Table B1 are associated with inorganic arsenic. These levels can also be applied to organic forms of arsenic, although this may be an overly conservative approach. Arsenic detected in environmental media should be assumed to be in its inorganic form unless proven otherwise by a laboratory and method approved by the Alaska Department of Environmental Conservation (ADEC). Arsenic poses significant non-cancer health risks to humans in addition to being a known human carcinogen. Naturally occurring arsenic is released into the environment by volcanoes and through weathering of arsenic-containing minerals and ores. Anthropogenic arsenic sources include various commercial and industrial processes and materials. In industry, arsenic is a by-product of the smelting process for many metal ores, including lead,gold, zinc, cobalt, and nickel. It is also used in multiple commercial products such as fungicides, herbicides,wood preservatives, batteries, optical glass, semiconductors, ammunition, and pharmaceutical products. Chromium is most often present in two forms: trivalent (chromium III), and hexavalent (chromium VI). Naturally occurring chromium is usually present as chromium III,whereas chromium VI is often derived from human activities (WHO 1990). Chromium VI is more toxic, soluble, mobile and 43 bioavailable in the environment compared with Chromium III. Typical baseline laboratory analysis for chromium reports total concentrations without speciation. In the past, the ADEC cleanup level calculations for total chromium used the most toxic oxidation state, chromium VI,which poses significant non-cancer health risks. However, concentrations of total chromium in soils throughout the State routinely exceed a calculated total chromium cleanup level that is based off of chromium VI toxicity. In addition, chromium VI has rarely been detected at contaminated sites in Alaska, as this metal is primarily associated with industrial and manufacturing processes (e.g., chrome electroplating, textile dyes,wood preservatives, anti-corrosion products used in paints/primers) that have not typically been utilized in Alaska. If an anthropogenic source of chromium is suspected to have been released, then ADEC will require chromium VI be analyzed. Alaska cleanup levels are now established for chromium III and chromium VI and arsenic as follows: Soil Cleanup Levels(mg/kg) Arctic Under 40 Inch Over 40 Inch Migration to Zone Zone Zone Groundwater Chromium(III),Insoluble Salts 1.0 x 105 1.0 x 105 1.0 x 105 1.0 x 105 Chromium(VI) 4.9 3.9 3.2 0.089 Arsenic 1 12 1 8.8 1 7.2 1 0.2 Groundwater Cleanup Level (micrograms/liter) Chromium II ,Insoluble Salts 22000 Chromium(VI) 0.35 Arsenic 0.52 Site analytical data reporting total chromium results will be presumed to represent chromium III unless site-specific evidence suggests a potential chromium VI source. This allows chromium VI to be evaluated on a site-specific basis where an anthropogenic source is confirmed or suspected based on current or past activities at a site. Please note that the requirement to evaluate background metals, the timing of background metal characterization in the cleanup process, and the level of effort needed to generate a background data set should be determined on a site-specific basis. III. METALS IN THE ENVIRONMENT The sources for metals in the environment at contaminated sites typically fall into one of three subcategories: natural sources, unknown or unconfirmed sources, and known anthropogenic sources. Available knowledge about the potential source(s) of metals at a site and the initial evaluation will determine the need for conducting background sampling and cumulative risk calculations as presented in the flow chart (Figure 1). Page 2 of 9 44 Figure 1. Path for Evaluating Metals at Contaminated Sites. III(1.)Natural sources of III(2.) Unknown or III(3.) Known . unconfirmed sources of enthropogemc sources of metals only metals metals Sampling or other Metal is assumed to be sufficient information to No Sampling required and. demonstrate that all results are compared naturally occurring . metals are naturally with screening levels occurring Yes Exceeds Oe7 Analysis for metal not Exclude as required unless it is being contaminants of Establish background mobilized by another potential concern and levels for comparison contaminant from cumulative risk Does Not evaluation Exceed Exceeds Include in cumulative risk evaluation (see section IV) 1. Natural Sources of Metals As a general rule, sampling and analysis for metals will not be required at sites presumed to only contain naturally occurring concentrations of metals. For example, if a site's history is well known and there is no evidence of an anthropogenic source of metals being stored or released at the site, then there is usually no reason to sample for metals. One exception is that in some site settings, certain contaminants can influence the surrounding geochemistry and promote mobilization of naturally occurring metals to more sensitive pathways like consumption of groundwater. In these instances where the natural occurring metal concentration in the Page 3 of 9 45 soil is high enough and conditions favor mobility to ground or surface water, monitoring may be required. An example of this type of mobilization is the natural breakdown of petroleum plumes in groundwater,which can temporarily result in anoxic conditions that mobilize arsenic into the water column. Studies suggest the mobilized arsenic may adsorb to aquifer sediment downgradient from the plume as the petroleum plume degrades (Cozzarelli et al., 2015). Cleanup will not generally be required for arsenic in these situations; however, monitoring of dissolved arsenic may be required as an indicator of biodegradation, or to ensure the groundwater is safe for consumption. Furthermore, arsenic must be included in cumulative risk calculations and institutional controls may be required until the groundwater geochemistry has reverted to its original conditions. 2. Unknown or Unconfirmed Sources of Metals At many contaminated sites, contaminants and releases may fall under the unknown or unconfirmed category. For these sites, a lines-of-evidence approach should be considered when deciding whether elevated concentrations of a metal are related to a release or past activity or are naturally occurring. In general, no single line-of-evidence will provide sufficient justification to determine that a particular metal is not related to the release in question; multiple lines of evidence provide the necessary stronger case. Without sufficient justification to rule out a metals related release, one should proceed with the screening process as with any other anthropogenic contaminant release to determine if a reference background study and comparisons are required. All analytical results from an ADEC approved analytical method should be reported. For example, if EPA Method 6010C is run for 31 metals, then the results for all metals should be reported and not just the results for metals subject to the requirements of the Resource Conservation and Recovery Act (RCRA). The following lines-of- evidence are examples to consider when evaluating site assessment data to determine whether metals are naturally occurring: • There is no record of a potential metal related release and/or historical usage or site activity related to metals. • Site characterization data do not show any well-defined pattern of concentrations indicative of a release of the metal. Typically, a contaminant concentration gradient will lead back to the location of a release. • The metal is associated solely with shallow soil near site features such as fences, sidewalks or buildings and is known to be a constituent of pesticides/herbicides that were likely used for their intended purpose and properly applied. • The detection and analysis of a specific metal species or metal organic complex could be used to determine if a specific anthropogenic chemical source was released. 3. Known or Suspected Anthropogenic Sources of Metals When a metal release is known or suspected to have occurred based on sources, site history, or site activities, one should proceed with metals analysis and screening as with any other anthropogenic contaminant release to determine if it is a contaminant of potential concern (COPC). Potential anthropogenic sources of metals include: landfills or waste dumps, batteries, glass, drilling muds, paints, metal plating, additive in cooling tower water, mining, pesticides, coal, electrical equipment, photography and film development, and wastewater treatment plants. Characterization at sites where used oil or waste oil has been released should include sampling and analysis for metals, including arsenic and chromium (see Contaminated Sites Program Field Sampling Guidance —Appendix F and UST Procedures Manual). The laboratory and method chosen to analyze metals in environmental media should be approved by the Contaminated Sites Program prior to the sampling effort. Disturbed Page 4 of 9 46 or altered naturally occurring arsenic sources (e.g., mine tailings or waste rock) are considered anthropogenic and should be compared with appropriate screening values or cleanup levels, and should be included in cumulative risk evaluations when exceedances occur. As with other COPCs, if the metal concentrations do not exceed screening values, the metal can be dropped from further assessment. Any other metals results quantified by a given analytical method specified in Appendix F of the field sampling guidance should be reported, but if a metal is not related to the release, it can be assumed to be naturally occurring and excluded from the screening process. 4. Obtaining Background Samples The basic principle in identifying background sample locations is to find areas that represent the native soil characteristics of the site, have similar distribution of metal concentrations as the site, but have not been impacted by a discharge, release, or other site disturbance, such as the movement of soil or rock. Groundwater wells used to establish background conditions should be up-gradient of the impacted well(s). When possible, background samples should be collected within site boundaries, but outside of known or suspected anthropogenic sources and in accordance with a department approved work plan. If it is not defensible to establish a single background value; a range should be evaluated to account for the heterogeneity of environmental media. The selection of background sample locations is a matter of professional judgment, however the following points should be considered: • The background sampling area must be clearly unaffected by releases from the subject site, or any other site. When characterizing natural background conditions, samples are best taken from areas with minimal anthropogenic impact (e.g.,undisturbed natural areas). The following areas are inappropriate for background sampling: 1. Fill areas; 2. Areas where known or suspected hazardous substances, petroleum, solid or hazardous wastes or wastewaters are managed, treated, handled, stored or disposed; 3. Areas affected by road runoff; 4. Parking lots and areas affected by runoff from parking lots or other paved areas; 5. Railroad tracks or railway areas or other areas affected by their runoff; 6. Areas of concentrated air pollutant depositions or areas affected by their runoff; 7. Storm drains or ditches presently or historically receiving industrial or urban runoff; or 8. Groundwater wells down gradient or surface water and sediment downstream of the impacted area. • Natural concentrations of inorganics vary with soil type and location. When determining natural background, the soil type and/or aquifer for the contaminated area and background locations should be similar in the physical, chemical and biological aspect of the media whenever possible. The following parameters should be similar when comparisons are made: 1. pH/Eh 2. salinity 3. cation exchange capacity 4. percent organic carbon 5. particle size and distribution 6. thickness of soil horizon 7. soil type, structure Page 5 of 9 47 8. well screening interval • Concentrations from background studies performed on one site may not be used on a different site,without prior approval, due to the potential for variability in the naturally occurring concentrations. • When measuring chemical concentrations in background samples, the same analytical methods used for site samples should be employed, if possible. • The background data set should be examined carefully for the presence of outliers, i.e., data that may not in fact represent background conditions. Formal outlier tests as well as professional judgment can be used in evaluating the background data set. • Background samples should be collected randomly and be representative of the area and media of interest. • For rivers, surface water and sediment background samples should be collected upstream of the impacted area. • For surface water bodies, background samples can be collected near the inflow to the water body if it is not influenced by the contaminated site. Alternatively, for large surface water bodies, the background samples can be collected from the water body itself but as far away as possible from an anthropogenic source. • The effect of tides should be considered for background sampling and if possible, background surface water,groundwater or sediment samples should be collected outside a zone of tidal influence. Published background studies may be of value in determining whether a site-specific background data set lies within the normal range of observations. The size of the geologic area and the number of samples to be collected should be carefully considered prior to conducting a background study to ensure that any substantial difference in mean metal concentrations between background and the site can be reasonably determined with statistical significance. EPA's Guidance for Comparing Background and Chemical Concentrations in Soil for CEBCLA Sites (EPA, 2002) can assist an investigator in choosing the appropriate number of samples for a background study. As a general rule, a data set should have a minimum of 10 discrete observations or measurements. In some cases, 20 or more samples may be appropriate when an area exhibits significant heterogeneity. In addition, the laboratory analytical method used in the background study should be reviewed by ADEC to confirm it is suitable for its intended use and the quality of analytical data validated to ensure it meets regulatory standards and guidance. A background data set with significant metal concentration variability, may not be suitable to compare to a data set of site metal concentrations if statistical hypothesis testing is unable to detect a difference in mean metal concentrations between the site and background data sets. To reduce the variability in a data set, more samples could be collected or the size of the background area to be studied could be reduced. In general, a metal data set with a coefficient of variation greater than 3 is indicative of high variability or dispersion. Page 6 of 9 48 5. Establishing Statistical Background Concentrations and Comparing with Site Data Comparisons between site and background data should occur by either conducting: • A point by point comparison of site data to an upper tolerance limit (UTL) background concentration using a 95% confidence limit with 95% coverage; or • A distributional comparison using hypothesis tests to determine whether the differences in the central tendency (i.e., mean or median) or upper tails are statistically significant. ADEC recommends a point by point comparison of site data to a statistically derived UTL for evaluating background concentrations in groundwater or surface water. For comparison of soil or sediment data to background data,ADEC recommends a hypothesis testing in accordance with EPA guidance (USEPA 2002; USEPA 2007). Incremental Sampling Methodology (ISM) or a combination of ISM and discrete sampling may be utilized for hypothesis testing if approved by ADEC on a site- specific basis. If an investigator proposes to use a parametric method for statistical testing or calculating a UTL, data distribution testing should be performed before running the test statistic since the appropriateness of a parametric method used to compute the test statistic is contingent on the distribution of the data. For example, the student's-T method for calculating a 95%upper confidence level (UCL) of the mean is not appropriate for data which has a distribution that is significantly skewed. Additionally, prior to computing the background or site calculations, outlier testing should also be conducted and outliers should be removed if there is no justification to retain these values. EPA has available the free statistical software package ProUCL which allows the user to detect outliers and determine the distribution of a dataset, and calculate potential UCL and UTL values (ProUCL 2016). The UTL is recommended as a bright-line background threshold value using 95% confidence limit on the 951'percentile. Censored data sets (i.e. data sets with nondetect values) should also be evaluated prior to computing background or site calculations. When nondetects are present in a data set,ADEC recommends utilizing the Chebyshev inequality or bootstrap methods in ProUCL for computing the upper limits to run a test statistic. IV. DETERMINING CLEANUP LEVELS, CUMULATIVE RISK,AND INSTITUTIONAL CONTROLS 1. Sites where no Known or Suspected Source of a Metal has been Identified The presence of a metal will be considered naturally occurring at sites that have no known or suspected anthropogenic sources. Sampling and analysis for metals is not necessary at such sites. Where metal sampling and analysis have occurred in the past, and where no known or suspected anthropogenic source has been identified, the metal results will be considered as background unless the data strongly indicate a localized source. Furthermore, speciation of metals is not required unless specifically requested by ADEC. Cleanup and/or institutional controls will be not be required for metals in these situations, nor will it be necessary to collect background samples for comparison. Cumulative risk calculations should be conducted in accordance with the ADEC's Procedures for Calculating Cumulative Kisk and exclude the risk Page 7 of 9 49 contribution from the naturally occurring metals. However, depending on site specific circumstances, the risk posed by naturally occurring metals may need to be discussed qualitatively in an uncertainty risk analysis and managed appropriately. 2. Sites Where a Known or Suspected Anthropogenic Metal Source has been Identified For sites where a known or suspected anthropogenic source of metals is identified, characterization of these metals is required and cleanup may be necessary. A determination of naturally occurring background metal levels as described above will be necessary to separate the contribution of naturally occurring metal concentrations from any anthropogenic metal concentrations for purposes of setting a cleanup level and conducting any necessary cleanup. A statistical hypothesis test should be conducted to determine if site metal concentrations in soil or sediment represent background or an anthropogenic source. When conducting hypothesis testing, a null hypothesis should be proposed such that the mean site metal concentration exceeds the background mean metal concentration. The hypothesis test selected is then used to determine if a comparison of background data to site data support the rejection of the null hypothesis (i.e. statistically confirming an alternative hypothesis that site mean metal concentration is equal to or below the background mean metal concentration) with an acceptable amount of potential decision errors. Acceptable limits for Type I (false positive that the null hypothesis is rejected) decision error and Type II decision error (false negative that null hypothesis is not rejected) are 0.10, respectively. If the site and background populations have unequal variances, then standard parametric tests may not appropriate. If an anthropogenic source is determined, and metal concentrations exceed one tenth an ADEC cleanup level, then a metal's maximum detected value or 95% UCL of the mean should be used as an exposure point concentration (EPC), and the EPC should be included in cumulative risk calculations. For groundwater or surface water data, a 95% UTL can be developed to determine if site conditions exceed background levels. If a UTL is developed and approved by ADEC,water samples should be collected and analyzed for metals from on-site wells or from on-site surface water bodies. If metal concentrations in two consecutive water samples do not exceed the 95% UTL, then metals at the site can be determined to be naturally occurring. If a detected metal in groundwater or surface water is not determined to be naturally occurring based on its comparison to a 95% UTL, then the maximum detected value or 95% UCL of the mean should be compared to cleanup levels and potentially used as the EPC for cumulative risk calculations. Additionally, if a metal, such as arsenic, is determined to be naturally occurring, then the metal may need to be discussed qualitatively in an uncertainty risk analysis. If a remedy includes an engineering control such as capping, or a cleanup does not completely achieve the site cleanup levels, institutional controls may be necessary to ensure that residual contamination is managed appropriately. At a site where chromium VI has been confirmed through sampling as a contaminant of concern, confirmation sampling for chromium VI will be required in addition to total chromium. It is important to note that chromium speciation requires a short (typically 24 hours) turnaround time for laboratory analysis. A discussion with the DEC project manager is recommended to address this sampling and analysis consideration. REFERENCES Page 8 of 9 50 Cozzarelli, I.M., M.E. Schreiber, M.L. Erickson and B.A. Ziegler. (2015).Arsenic Cycling in Hydrocarbon Plumes:Secondary Effects of Natural Attenuation. Groundwater, 34, 35-45. United States Environmental Protection Agency (USEPA). 2002. Guidance for Comparing Background and Chemical Concentrations in Soil for CERCLA Sites. EPA/540/R-0 1/003, OSWER 9285.7-41. Office of Emergency and Remedial Response. USEPA. 2007. Performance of Statistical Tests for Site versus Background Soil Comparisons When Distributional Assumptions Are Not Met. EPA/600/R-07/020. Office of Research and Development. Interstate Technology Regulatory Council. 2012. Incremental Sampling Methodology. World Health Organization (WHO) (1990). "Chromium (Environmental Health Criteria 61) International Programme on Chemical Safety." Geneva, Switzerland. Page 9 of 9 51 Electric System Director Rob Montgomery Ad Hoc Committee — Participated in the August 14 meeting of the electric utility ad hoc committee. I continue to answer questions and provide background on the utility and its operations as requested. At the August 7 meeting, rates consultant Mike Hubbard presented to the group regarding rate making and factors in rate setting that affect Seward customers. At the August 21 meeting, Alaska Energy Authority Executive Director Curtis Thayer talked with the group about the Bradley Lake Hydro Project, the project's importance to Railbelt utilities and ratepayers, and the value of having Seward participate along with the other Railbelt utilities on the Bradley Lake Project Management Committee. Infrastructure Project and Budget— Contractor Electric Power Constructors continue construction work to refurbish/rebuild the Fort Raymond Substation. The first of two large substation transformers also was delivered the week of August 14. This major construction work, being led by the contractor, Electric Power Constructors, is expected to wrap up later this fall. Work to complete the rebuild of power poles, line and related equipment on Nash Road will resume in the spring, as will refurbishment work on the Lawing Substation at MP 25 of the Seward Highway. Attached is an update of the infrastructure project spending, which shows both dollars spent and committed year to date. Department Overtime —Total overtime hours for the 4-man line crew, 2 plant operators and field engineer: Infrastructure 37 hours; Other 30.5. 2023 Rate Study (Ongoing) —The rate study being conducted by The Financial Engineering Company continues. The rate study remains on track for a special meeting/work session with City Council on September 11. Initial plans called for the increase to go into effect in the fall, but implementation is now set for January 1, 2024. • Customer Job Orders— Between August 2 and August 12, the department completed 12 job orders with another seven in processing. Four jobs also are in the queue ready for the crew with seven others waiting for customers to complete work on their side of the meter. Crews also completed 16 underground locates while the field engineer assisted the billing department with meter reading on August 15. 52 Q Q r O Or 0 0 0 Vl Vl O �D Vl O O O O O O O O O O O O 7 O O O O O O O O O O N O O Vl 7 M O O O O O O O M O O O O O O O O O O O O O O Vl O lD O O M M 0 0 r- N O O 01 N O M N O O O M N l- 7 0 - O l- ID N Ol 01 l— O O - l- O O vi 01 01 Ni r- r O l- M O 01 vi N O l- 7 ID O N O O N l� 7 M --i 7 M --i N 7 �D 7 0 lD n O r- 't n rl O1 O n l-ID --i ID ID 7 01 l- 7 M M l l l 7 M- l-N Vl 01 N O Vl Vl�--i 7 01 vi l� O �D �D M 7 �D vi N ID ID N N O 7 N vi Ol r O N O � T Q O •� � Q yam, O. - � � ... � � s0. S P4 A W W o ° z3 0 o c°'n w P4 y w° ai Z Ca o °3 w x Z x a°i M J a 3 0 CG W44 F O W s. y Z x H w o x a o a a H c4 C7 C7wcG w° �1 w° wv 0 z o x H x w w w w w o a w w a a a a s H H a H z F H w 3 3 a w 0 ¢ w a w H w Cal p a a w w 0 wWT4 w � Fww H � H x x x x z a � ¢' x0 � awaaHHw N N N N N N N M M M U M M M N N N N N N N N N N ^O O N N N O O O O O O O O O O Z'. ,Y O O O ID O C1 O 0 Ol Ol O O M M O O N O M 7 Vl Vl Vl O N a Ol Ol Ol Ol Ol Ol O O N N N N --i N N N N N N N M M N N N N N N N N M M M M M M M M M M M M M M M M M M M :pt Fire & Building Department Fire Chief Clinton Crites 4 _ 2023 TYD Statistical Information: & — Fire & Life Safety Inspections: 239 with 161 violations noted. We NEED volunteers, if you or Emergency Calls: 282 someone you know is interested in serving your community, please New Building Permits Issued 2023: 39 give us acall at 224-3445 or stop with a total construction valuation of$24,616,552.00. 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! • Continual maintenance on the station and apparatus. • 10,500 feet of Hose tested 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. 907-224-3445 or sewardfd@cityofseward.net r k Y •7 r u 6 e �E A' - "Ride-A-Firetruck"auction prize winner received a ride to school in style! i ' 1 4 a re w 'Zs 8 J Chief McCoy and FF Woodard delivering > . LL fun and engaging training. Come join us! 5 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. Founders' Day Celebration Join the Resurrection Bay Historical Society on August 28th from 11am to 2pm in the Community Room for the annual Founders' Day celebration.There will be free museum admission as well as a reception in the Community Room featuring a slide show of historic photos and free Alaska Railroad Centennial pins (while supplies last). Obihiro Collection View a selection of objects donated to the City of Seward over the years from our sister city Obihiro, Japan. Commemorative items include baseballs from a friendly game played in 1993, a plaque about the Obihiro Gazebo, and two model samurai helmets. Located in the atrium area. 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. Upcoming Events *August is National Dog Month. The library will have all programs focusing on man's best friend. 56 4 After school tutoring Tuesday— Friday. Math, Spanish, and Language Arts help. Hvery Friday starting August 18th we will have a Movie Matinee starting at 3. OSeptember 30th- 15t Solar Program will have solar eclipse fun and crafts. More details to come! 4 October 7th—2n6 Solar program at the library with crafts. More details to come. You can pick up your Free Solar Glasses for October 14th partial Solar Eclipse. OOctober 14th-Solar Eclipse Day! Sign up for our final Eclipse event happening at Avtec from 10 am —12 pm. We will have a Dome inside the Avtec Gym where we can view the solar system! Registration Required. Movie CED 2 "Waves Over Seward," a movie about the 1964 Earthquake, will be hosted Tuesday-Saturday and some Sundays 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. 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. Month of July Stats WIFI Users— 1428 Patrons Served — 10701 Passports We are currently taking passport appointments for new passports but not renewals. Please call 907-224-4082 for appointments. 57 MOVI (gi? + WA VES OVER SEWARD 1964 EARTHQUAKE & TSUNAMI 05.00 Admission Kids under 12 get in free Shows once a day at 2 PM Tuesday - SatuT-day 25 f-n!nL]teS C0MFTlLll)jtY ROOM Seward Co mi-nunity Li br a rV & Museum 239 6th, Ave 907-224-4062 vvvvvv.uitycfsew,ard.u.-,.IibF)rILJ',,' of the Swmwmrd Lowary 58 Parks: m. 4 1p X . ,d Have you noticed the bright display of flowers and ornamentals along the bike path? Despite unusually wet, windy and cool weather this summer, eighteen community members donated their time and talents to beautify our fair City. For several seasons Parks and Rec has not been able to find a season gardener. This summer they tried something new using volunteers. According to program organizer, MaryLynn Barnwell, the Adopt a Garden Program has been a great success. In the spring Parks and Rec employees enhanced the planters and beds with compost and bone meal. Flowers and ornamental starts, grown locally by Weezingreens, were purchased and made available to the gardening volunteers who used their expertise to make beautiful arrangements. The plots range from larger raised beds to single concrete planters. The volunteers weeded and 59 maintained their adopted plot throughout the summer although being such a usually wet summer, volunteers rarely needed to water. The City of Seward Parks and Recreation Department would like to thank the volunteers that adopted a garden bed or planter this summer. ..rr Memorial Bench installed 8/15 for Tom Gillespie Campgrounds: The Shower house in Resurrection Campground is closed until further notice. We have experienced extensive electrical issues associated with the sump pump. Working on repairs and replacement of parts. Sports and Recreation: The AVTEC Gym is open again and the slow trickle of folks coming back the first two weeks has turned into a rushing river this past week. It's been great to see the public come back and enjoy the facility. Our daily activities are picking up steam and we had our first skate night since reopening with 46 locals attending on Saturday the 9th. 60 We're winding down on our summer self challenges. The Drive Less, Move More Emissions Challenge will end first on the last day of August and there is a heated battle amongst a couple of cyclists that commute. Danny Meuninck is trying to hold off Brenan Hornseth as he makes a strong push narrowing the gap here in the last few weeks. Danny is at 380 miles, while Brenan has done 265 in just three weeks. A few of the recreation aide staff will be leaving soon. MaryLynn Barnwell who has helped out tremendously this summer in the gym and with the gardens will be taking off at the end of August, while sign-making extraordinaire Luther Freeman will be working until mid-September, and Devin Putney the ever enthusiast for local programming and events will stay on until the end of September. They all stepped up this spring and summer to help keep things running and I'm truly grateful to have them here. We will be looking for program aides to help fill the void for the time being, but plan on having some of our seasonal aides back later in the fall. There's a lot of programming coming up. Make sure you're spreading the word about our newsletter. You can signup for the newsletter at our website on the sports and rec page by selecting subscribe at the top. https://www.cilyofseward.us/departments/parks-recreation/sports- recreation. Or follow us on Facebook, Seward Parks and Recreation or Instagram, seward—parks, for all the latest goings on. Skate nights will be happening every other Saturday with the next being an Autumn themed night on the 26th. A couple of Kid's Nights at the Avtec Gym will be being held on the 19th of August and 2nd of September. The last Wednesday in August will have our second pickleball tournament of the year with six teams already signed up for that event. Basics of Ballet Youth Class will be on Saturdays in September while a Mario Kart Tournament will take place on the 7th of September. There will be two big outdoor events in September, Zudy's Fun Run, which is a 5K sponsored by Zudy's Cafe to celebrate the end of season and raise money for the local cross country team on September 16th. And the other will be the Touch A Truck event, which was a huge success last year and surely to be a smash again on September 30th. Daily Activities: (August) Tuesday: Open Gym: 10-6pm *Senior Walking Hour: 11-12pm Teen Hoops Tuesdays: 4-6pm (starts August 15th) Dungeons and Dragons: 6-8pm (Starts August 22nd) Wednesday: *Senior Walking Hour: 11-12pm Racquetball Challenge Court: 5-8pm (starts August 23rd) Open Pickle Ball: 6-8pm Cribbage meetup: 6-8 pm (multi-purpose room) Thursday: *Senior walking hour: 11-12pm Youth Gym: 12-lpm Open Basketball: 6-8pm Friday: Senior Walking hour: 12-lpm Youth Gym: 1-3pm 61 Open Volleyball: 6-8pm Saturday: Open Pickleball: 12-2pm Open Rockwall: 2-4pm Adult Only Rockwall: 4-5pm Skate Night: 6-8pm (every other Saturday) Other events: August 19th: Kids Night, 6-8pm, AVTEC Gym August 26th: Autumn Skate Night, 6-8pm, AVTEC Gym August 30th: Doubles Pickleball Tournament, 6-9pm, AVTEC Gym September 2nd: Kid's Night, 5-7:30pm, AVTEC Gym Saturdays September 2nd-23rd: Basics of Ballet Youth Dance Class, 9-1 lam, AVTEC Multi- Purpose Room September 7th: Mario Kart Tournament, 4-7pm, AVTEC Multi-Purpose Room September 9th: Jeopardy Skate Night, 6-8pm, AVTEC Gym September 16th: Zudy's Fun Run, 1lam, Zudy's Cafe 62 \ „ : ) mGCS@ \ # ~ _ ) ( - - - - - - � 7N N N . 4 : / » - - - - - - - � m co \ \ \ \ \ \ \ \ E f § co } F ) § N N h0 l6 d O O O O O N N N N N Sao ap 9% a1 o,L 90�00 9k2a� s m 0 �b N N W u O lDd N a L Q L d �PL(i N n ON ro O^ Ln O O n i T O O O M O n O N O O T r*, M L n r*, oo N b CO m .D 'I- M c.. I N N N N N E E E E E 0 0 0 0 0 0 0 0 0 0 0 0 ���1/F, ro ro ro ro ro ro c c c c c c O O O O O O rn rn rn rn rn rn O O O O O O O O O O O O f� 0O O O O O O O 1-1 I N N N N O O O O O O O O O O O O O O O O O O N N N N N N CD CD OD CD CD CD ipr -b+ ipr -b+ iA- -U+ anuanaa Central Treasury Report,August 15,2023 Cash and Investments 2022 2023 Wells Fargo Checking 13,651,824.58 5,539,241.93 Clearing Account 0.00 0.00 Undeposited Funds(Cash in Transit) 4,010.72 451,967.11 Investments 42,918,250.48 43,485,835.00 56,574,085.78 49,477,044.04 By Fund: Fund Name Fund Number General Fund 01000 8,504,893.69 7,931,496.92 Teen Council Agency Fund 02000 6,083.05 6,155.27 Motor Pool Internal Service Fund 03000 2,409,670.12 2,166,426.16 Compensated Absences Fund 03100 465,144.79 500,180.86 Harbor Enterprise Fund 11000 1,514,500.12 682,386.65 Harbor MRRF Fund 11001 746,197.56 839,907.56 Harbor Passenger Fee Fund 11002 959,134.00 544,809.65 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 0.00 0.00 G,K&L Floats City 11430 (1,170,208.58) 701,223.90 G,K&L Floats State 11431 139,083.99 (38,681.12) Cathodic Protection Project 11440 13,679.80 13,679.80 SMIC Enterprise Fund 12000 282,550.17 388,082.20 Parking Enterprise Fund 13000 541,364.20 808,646.73 Electric Enterprise Fund 15000 7,817,415.62 4,472,532.05 Electric MRRF Fund 15001 957,301.76 957,301.76 Transmission Line-City Funding 15310 0.00 0.00 Electric Critical Infrastructure Fund 15340 2,607,713.70 328,673.05 Electric Nash Road Infrastructure Project 15351 4,797,093.46 2,188,988.94 Water Enterprise Fund 17000 2,036,519.03 2,501,298.73 Water MRRF Fund 17001 852,572.15 852,572.15 Water ARPA Fund 17100 577,195.00 475,436.65 Lowell Canyon Water Storage Tank 17330 222,914.29 222,914.29 Wastewater Enterprise Fund 18000 2,481,272.39 2,841,745.38 Wastewater MRRF Fund 18001 742,025.05 742,025.05 Wastewater ARPA Fund 18100 577,195.00 482,599.67 Hospital Enterprise Fund 19100 748,612.38 442,486.89 Healthcare Facilities 19102 927,284.17 927,284.17 Seward Mountain Haven Enterprise Fund 19200 9,743,826.74 11,327,471.16 Seward Historical Tour 30016 349.00 349.00 SCHC-City Funding 30040 0.81 0.81 Bus Transportation-CPVFunds 30051 0.00 886,705.24 Erosion Fund 30070 2,150.00 2,150.00 FEMA 2022 Lowell PT Rd Land Slide(Cat A) 70061 0.00 0.00 FEMA 2022 Lowell PT Rd Land Slide(Cat B) 70062 0.00 0.00 Capital Acquisition Fund-City Funding 80010 1,391,673.44 559,544.44 Animal Shelter 80015 287,095.13 68,252.10 Streets&Sidewalks-City Funding 80020 74,554.09 74,554.09 Energy Efficiency-City Funding 80040 101,211.69 93,784.69 Developer Reimbursement Program 80071 923,814.90 1,836,748.04 ARPA-LGLRR 80084 1,806,416.27 1,748,320.04 1LH-City Funding 80090 40,000.00 0.00 Japanese Creek Flod Mitigation-City Funding 80117 0.00 58,310.58 Total Pooled Cash and Investments by Fund 56,574,085.78 49,477,044.04 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. Prepar 0 nance 80010-Capital Acquisition Fund-City July 31,2023 7/31/2023 Resolutions Amounts Res.2022-089 GF to CAF 746,000.00 Assets Res.2022-089 Sidewalks Project (350,000.00) Cash to date 7/31/23 566,423.44 Res.2022-116 Hilltop DRP (1,425,000.00) Total Assets 566,423.44 Res.2019-048 Lowell Point Stabiltation (63,750.00) Res.2023-084 Scheffler Creek (15,424.00) Liabilities Encumbrance to date 7/31/23 350,000.00 Res.2023-084 Scheffler Creek 15,424.00 Total Encumbered 365,424.0E Fund Balance/Net Assets Unassigned Fund Balance to date 7/31/23 1,309,173.44 Transfers-In 746,000.00 Transfers-Out (1,425,000.00) Total Fund Balance/Net Assets 630,173.44 Expenditures/Expenses Expenses to date 7/31/23 63,750.00 Total Expenses 63,750.00 Estimated Total Fund Balance/Net Position* 200,999.44 *Unaudited The month of July has not been closed. Prepar6 6inance 01000-General Fund Fund August 15,2023 8/15/2023 Assets Cash to date 8/15/23 7,931,496.92 Assets to date 8/15/23 3,221,922.83 Total Assets 11,153,419.75 Liabilities Liabilities to date 8/15/23 1,371,381.12 Total Liabilities 1,371,381.12 Fund Balance/Net Assets Unassigned Fund Balance to date 8/15/23 9,741,305.40 Restricted 2,608,220.19 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 8/15/23 6,691,787.60 Total Revenues 6,691,787.60 Expenditures/Expenses Expenses to date 8/15/23 9,249,709.92 Total Expenses 9,249,709.92 Estimated Total Fund Balance/Net Position* 9,782,038.63 *Unaudited The month of August has not been closed. Prepar&7inance AM City of Seward,Alaska. Central Treasury Report 8.15.23 The attached Central Treasury Report provides the unrestricted cash available by fund as of July 31, 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 11431 G, K& L Floats State Funding—Res.2021-113. The City will be reimbursed from the State Grant. 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. 68 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page CALL TO ORDER The August 14, 2023 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Deputy Police Chief Karl Schaefermeyer 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 Robert Barnwell comprising a quorum of the Council; and Norm Regis, Acting City Manager Stephen Sowell, Assistant City Manager Karl Schaefermeyer, Deputy Police Chief Kris Peck, City Clerk Sam Severin, City Attorney Excused—Wells Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Selena Soto, inside city limits, said she was currently working for the city's Community Development Department. This fall Soto would be leaving the state this fall for personal reasons. Soto listed some of her accomplishments with regard to mapping and GIS work. She would love the opportunity to continue her work remotely with the approval of Resolution 2023-095. Kevin Dunham, outside city limits,was opposed to the sale of the electric utility to Homer Electric Utility. He felt that Action Memorandum 2023-011 would still be completely true if Chugach Electric replaced HEA on every line item. He was opposed to changing the three-fifths super majority requirement in the Charter. Greg Hass, outside city limits, spoke in opposition to the city selling land to Seward City Tours. Hass felt the land would be an ideal site for the future community recreation center. Skip Reierson, inside city limits, said there was too much unacceptable behavior between citizens and council members lately. He urged everyone to be respectful. On other topics,Reierson 69 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page noted an error in the Ad Hoc Committee meeting minutes. Reierson advised the agreement with Providence be reconsidered and it should revert back to the previous language. Lastly, Reierson was curious to know what became of a 2002 council resolution that approved a new fire station to be built on Sealion Avenue & The Seward Highway. Jason Ebberson, outside city limits, spoke against the reintroduction of the ballot measure to sell the electric utility on the fall ballot. He was also opposed to the attempt to lower the goal post by changing the Charter's three-fifths requirement. Pat Messmer, outside city limits, said the Police Department was severely understaffed and he was currently working 20 hours of overtime each week. Messmer said there were four open positions, and three officers were retiring in the next couple years. He suggested a council work session to discuss possible solutions for the Police Department. Messmer had a few ideas such as: Subsidized housing, higher wages, PERS Tier 4, signing bonus, and offering gym facilities. Mica Van Buskirk, inside city limits, was opposed to the sale of land to Seward City Tours. That parcel of land was ideal for the future site of the community recreation center. Kat Sorensen, inside city limits, said the Seward Silver Salmon Derby was underway despite some stormy seas and rough weather. She summarized the current derby leader board, sponsors, volunteers, and prizes. Becky Dunn, inside city limits, said she would be interested if all public correspondence could be made available. Dunn cautioned against selling the land to Seward City Tours due to the land being ideal for the future community recreation center. On another topic, she said rape kits were hard to find and not available locally. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Approval of Agenda and Consent Agenda Calhoon removed Resolution 2023-095 from the consent agenda. Finch removed Resolution 2023-093 from the consent agenda. DeMoss added Action Memorandum 2023-011 and 2023-012 to the consent agenda. There was no objection from the council. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the July 24, 2023 City Council Regular Meeting Minutes Resolution 2023-090: Accepting The Return of $56,310.58 In Funds From Kenai Peninsula Borough That Was Intended For The Japanese Creek Feasibility Study Project, And Appropriating 70 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page Funds Resolution 2023-091: Approving An Employment Agreement Between The City Of Seward And Kathleen Sorensen For City Manager Services Resolution 2023-092: Authorizing The City Manager To Enter Into A Loan Agreement With The Alaska Department Of Environmental Conservation Action Memorandum 2023-011: Determining It Is In The Best Interest Of The Seward Community To Sell The Electric Utility And Specifying The Primary Reasons Action Memorandum 2023-012: Clarifying the Reasons Homer Electric Association is the Preferred Electric Utility to Purchase Seward Electric SPECIAL ORDERS, PRESENTATIONS,AND REPORTS Proclamations and Awards The Founders Day Proclamation was read by Vice Mayor Osenga and accepted by Mayor McClure. City Manager Report Acting City Manager Norm Regis said Senator Murkowski's staff recently toured the city infrastructure. On another topic, the harbormaster's restrooms had been vandalized again with deliberate attempts to sabotage the toilets with concrete filled diapers. Calhoon asked about the status of the city finance director. Regis said Sully Jusino had been recently hired as finance director. Calhoon asked about if the budget would have to be adjusted since that position had not been funded. Regis said the department had been so short staffed that it wouldn't be an issue to find the funding. City Clerk Report City Clerk Kris Peck provided an update on the Sister City exchange with Obihiro, Japan. City Attorney Report City Attorney Sam Severin said the legal action against the abandoned vessel had been filed and progress was being made without extensive litigation. Severin enjoyed the regular interactions with the clerk's office and HR departments as they worked through complex issues. Other Reports and Announcements Small Business Development Center(SBDC) Quarterly Report 71 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page HYPER Financials Seward Electric Utility Ad Hoc Committee Meeting Minutes July 31, 2023 Providence Audited Financials for FY21 and FY22 Presentations Taryn Olsen-Yelle presented R&M Engineering's Public Safety Building Needs Assessment PUBLIC HEARINGS Ordinances for Enactment—None Resolutions Requiring Public Hearing—None UNFINISHED BUSINESS -None Council recessed the meeting at 8:10 p.m. Council resumed the meeting at 8:16 p.m. NEW BUSINESS Resolutions Resolution 2023-094: Repealing Resolution 2023-058: Personnel Policy 2023-01: Phone Use and Recording Policy Motion (DeMoss/Finch) Approval of Resolution 2023-094 Regis said council had requested a resolution be drafted to repeal Resolution 2023-058. He clarified a yes vote would remove the personnel policy and a no vote would keep the policy intact. Finch said he was the council member who requested the policy to be repealed. He felt a professional supervisor should have nothing to hide in terms of being recorded. He fully supported repealing this policy to revert back to the State of Alaska law. Finch said the city policy required the other party would need to be notified prior to the recording. Severin said the diminishment of moral and trust was the downside if city employees were always suspicious of being recorded. Motion Failed Yes: Finch, Calhoon No: Barnwell, DeMoss, Calhoon, Osenga, McClure Resolution 2023-093: Authorizing The City Manager To Enter Into A Management And Operating Agreement With Providence Health& Services Washington d/b/a Providence Health 72 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page & Services Alaska Motion (Osenga/DeMoss) Approval of Resolution 2023-093 Sowell noted there were a lot of people involved with this operating agreement and it had been amended five times. The agreement reflected the current relationship between Providence and the City of Seward. He felt there was a need for a work session to better understand this very large topic. Motion Passed Unanimous Resolution 2023-095: Authorizing the City Manager To Enter An Independent Contractor Agreement With Selena Soto for GIS Technical Services and Appropriating Funds Motion (DeMoss/Osenga) Approval of Resolution 2023-095 Community Development Director Jason Bickling said the GIS technical services position was unique and they were lucky to have Soto. Her position was reclassified as a GIS Technician and she was a boost to the community development department. Bickling provided examples how an up-to-date GIS system would benefit the city A comprehensive GIS system was part of any modern municipality. This contractor agreement would be the only way to keep Soto employed with the city when she moved out of state this fall. He recalled paying higher dollar amounts for lesser quality GIS work before Sota had joined the department. McClure asked if the former GIS technicians lived in Seward. Bickling said they lived out of state and worked remotely. Calhoon thanked Bickling for the explanation. Motion Passed Unanimous ACTION MEMORANDA—None OTHER NEW BUSINESS Seward City Tours Request to Purchase Property Sowell said this item had been discussed since June 2022. The outcome was an appraisal from MacSwain and Associates. The fair market value was $290,000. He said the Muni Land Plan was vague and it said to either retain for a future city development or to sell to a sound developer. Administration was requesting direction from council to draft a resolution that would come back to council. Council suspended the rules to allow Seward City Tours owner Jonah Swiderski to speak at 8:50 p.m. 73 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page Jonah Swiderski said Seward City Tours operations had increased over the years and they were looking for land to expand their business. He said he had no desire to derail the quest for the community recreation center. However, that land had not been designated as the site for the recreation center. Swiderski wanted to add employee housing and areas to perform maintenance on the busses. Finch supported the sale which supported housing and growing a business. McClure said the city was typically not in the business of selling property should be very careful about proceeding with a sale. DeMoss asked for confirmation on the status of the community recreation center. She didn't think the city should hold onto the land for possible future unknown uses. Selling city land with a sound development plan was more reasonable option. Council went back on the rules at 9:04 p.m. Motion (Osenga/DeMoss) Direct administration to come back with a resolution for a purchase and sale agreement with Seward City Tours Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS June 6, 2023 Planning& Zoning Approved Minutes CITIZEN COMMENTS Kevin Dunham, outside city limits, said he had over 40 years of experience in the power system industry. Dunham explained how power systems were all connected and worked together. Dunham recalled an incident with Homer Electric not collaborating with Chugach Electric. Kat Sorensen, inside city limits, thanked council for approving the resolution regarding her contract as the next City Manager. She thanked Regis for his service as Acting City Manager as well as Harbormaster. Skip Reierson, inside city limits, said he had been working behind the scenes to help administration with financial reports. He provided funding solutions to council and was disappointed they did not appreciate his financial reports. Reierson cautioned that water and sewer needed to be replaced or there would be an emergency situation. There should also be plans for a new sewer lagoon. Becky Dunn, inside city limits, wanted to bring awareness to a program called STAR (Sexual Trauma Prevention& Response). Anyone involved with rape victims should know of the 74 City of Seward,Alaska City Council Meeting Minutes August 14, 2023 Volume 42, Page STAR program. It had been around since 1978 and all the services were free. On another topic, Dunn felt that five minutes citizen comments at the end of the meeting was too long considering all the action had already been taken. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Regis thanked everyone for speaking tonight. He congratulated Sorensen on becoming the next City Manager. He noted it was nice to get funds back from the borough on Resolution 2023- 090. Sowell said he would be reaching out to Providence to schedule a work session. He thanked council for a vibrant discussion. Barnwell said he appreciated the Police being candid with their needs and current situation. He wanted the public to know that council had not given up on the proposed recreation center. He thanked the citizen for providing the background information how the power systems were connected. Finch thanked everyone for coming out tonight and speaking. He learned some new things about the power supply across the country. He was curious about a possible reserve Police Department. Lastly, Finch thought the city would be interested in the STAR program. DeMoss congratulated Sully Jusino on her promotion to Finance Director position. She thanked Peck and Barnwell for helping with the Obihiro exchange program. Calhoon thanked Mr. Reierson for his continued efforts to educate the community on the financial issues of the city. Osenga congratulated Sully Jusino and Sorensen on their promotions. He wished everyone a Happy Salmon Derby. McClure congratulated Sully Jusino and Sorensen on their promotions. She reminded everyone that public school started tomorrow. McClure noted that Founder's Day was coming up on August 28, 2023 and there was an event at museum. She felt this was a good meeting with a wide range of topics. ADJOURNMENT The meeting was adjourned at 9:28 p.m. Kris Peck Sue McClure City Clerk Mayor 75 • Amp Ordinance 2023-020: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 12 — BUILDINGS AND CONSTRUCTION AS PART OF THE CITY'S RECODIFICATION PROJECT Documents: • Agenda Statement • Ordinance 2023-020 76 City Council Agenda Statement ...... ..... Meeting Date: August 28, 2023 To: City Council From: Kris Peck, City Clerk Agenda Item: Ordinance 2023-020: Amending Seward City Code Title 12 — Buildings and Construction Background and Justification: The purpose of this ordinance is to complete the recodification for Title 12 — Buildings and Construction. This recodification adopts newer code editions with revisions to specific code provisions that meet local conditions. Key: The Source column indicates who brought the change forward (Atty=City Attorney, Mgr=City Manager, DH = Department Head, Clerk=City Clerk) Code Citation Source Amendment 12.01.015 Atty, DH Delete as obsolete. 12.05.010 Atty, DH Replace the entire section to update from 2006 to 2021 editions. 12.05.011 a Atty, DH Replace the entire section to update from 2006 to 2018. 12.05.011 b Atty, DH Replace the entire section to update from 2006 to 2018. 12.05.011(c) Atty, DH Create brand new section clarifying where copies of IBC can be obtained. 12.05.011 e Atty, DH Update 85 specific provisions of the IBC to reflect local circumstances. 12.05.015 Atty, DH Delete as obsolete. 12.05.021 a Atty, DH Update from 2012 to 2021 edition. 12.05.021(d) Atty, DH Update from 2012 to 2021 edition and update 64 specific provisions of the IRC to reflect local conditions. 12.05.025 Atty, DH Update from the 1991 to the 2018 edition. 12.05.031 a Atty, DH Update from the 2012 to the 2021 edition. 12.05.031(b) Atty, DH Update and replace 21 specific provisions of the IMC with 9 provisions to reflect local conditions. 12.05.035 Atty, DH Update from the 2005 NEC to the 2020 edition of the NFPA. 12.05.040 b Atty, DH Change from NEC to"electric code as adopted in SCC 12.05.035." 12.05.050 Atty, DH Create brand new section adopting the International Fuel Gas Code 2021 edition with certain provisions reflecting local conditions. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 2.2.8 and 3.7.1.3: Continue to review and update the city code. Strategic Plan: Other: Certification of Funds 77 Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable Finance Signature: N/A Attorney Review ✓ Yes Attorney Signature: is Ko±l P.cL Loe Not applicable Comments: Administration Recommendation e✓ Adopt Ordinance Other: 78 Sponsored by: City Clerk Introduction: August 28, 2023 Public Hearing: September 11, 2023 Enactment: September 11, 2023 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 12 — BUILDINGS AND CONSTRUCTION AS PART OF THE CITY'S RECODIFICATION PROJECT WHEREAS,in May 2020, Seward City Council approved Resolution 2020-040 to review, update, and recodify Seward City Code; and WHEREAS,the reason for performing a recodification of the city code is to align the code with the city's ordinances and Charter, and State Law and State Constitution; and WHEREAS, the preliminary recodification review was performed by the Municode attorney who was charged with uncovering any discrepancies in the language; the attorney produced a report of findings; and WHEREAS, Seward's city attorney reviewed the report and provided input, and then department heads and city administration added additional input; and WHEREAS, this ordinance is focused on Title 12 — Buildings and Construction and reflects input from department heads, city manager, and city attorney. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Title 12 —Buildings and Construction is hereby amended as follows: (Changes from current code are identified as: Deletions =Bold Str•-ikethrou ; Additions =Bold Italics Underlined.) TITLE 12—BUILDINGS AND CONSTRUCTION Chapter 12.01 —General Provisions 12.01.010 - Timber, pilings, posts or piers prohibited. Construction of structures with timber piling, posts, or piers as the sole structural support, is prohibited except for docks, wharves, and other engineered stand-alone structures expressly approved by the building official in accordance with the IBC as adopted by the city. 79 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 z�5 Construetion below mean lower low water. Any portion of any residential strueture built below 17 feet above mean lower- low water- . . . eonditional use permit from the s engineering department. 12.01.020 - Numbering of buildings. (a) The city manager, or his designee, shall assign an address to each lot or building within the city limits. (b) The property owner of any building to which an address has been assigned within the city limits shall affix to the exterior thereof the numbers assigned to that lot or building. Accessory buildings not assigned a separate address need not have numbers affixed to them. (c) The numbers shall be affixed at a height of between five and eight feet so as to be clearly visible from the street to which the address refers. Buildings situated a considerable distance from their street frontage or obscured by trees, shrubs, etc., shall have the address number posted on a plainly visible man-made feature, such as a post, within at least 50 feet of the street named in the address. (d) The figures making up an address shall not be less than four inches in height and shall clearly contrast with their immediate background. 12.01.025 -Receipt for water and sewer connections prerequisite to issuance of building,etc., permit. Before a building, electrical or plumbing permit is issued for a building or structure requiring a water or sewer connection, the applicant shall submit with his application for such building, electrical or plumbing permit a receipt from the water or sewer department for the required water or sewer connection. The water and sewer departments shall submit to the building inspector once each month a list of the water or sewer permits issued during the month covered by the list. 12.01.030 - Platted property lines. No building, except a single-family residence, may be constructed across platted property lines. Chapter 12.05 - Codes of Technical Regulation 12.05.010 - Uniform Building Code adopted (Repealed by Ord. 2002-09, § 1). 12.05.011 - International Building Code adopted. (a) The International Building Code I(BC,), 2021 Edition, Chapters 1-12, 14-28, 30-35, and appendix C, 2006 Edition, ' , hereby designated and shall be known as the Seward building eode and shall eonstitute th-e laws of the eity relating to building regulation are adopted by reference to re-elate all occupancies and buildin,-s, except that the IBC is revised by deletin-all the references to "ICC Electrical Code" or "NFPA 70" and replacin'- those references with "Electrical Code as adopted by SCC 12.05.035" and the IBC is revised by deletin- all the references to 80 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 "International Fuel Gas Code", with the exception of Chapter 3 Section 304 and Chapters 6 and 7, deletin,- all the references to "International Plumbin- Code", and replacin- the references to "International Fuel Gas Code" and "International Plumbin- Code" with "Uniform Plumbin- Code as adopted by SCC 12.05.025." Although not published in full in this section, all of the provisions of the International Building Code, 2006 2021 Edition, except as provided in subsection -D E_ of this section, shall be and are hereby adopted by reference to the same extent as if set forth in full in this section, except to the extent that the International Building Code shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall prevail. (b) The City of Seward shall possess three copies of the city designated edition of the International Building Code,for public use,inspection and examination, so long as the provisions thereof remain in force: one copy is kept in the Seward City Library (239 Sixth Ave) and two sets are kept at the Seward Fire Station (316 Fourth Ave, Seward,AK 99664). (c) Copies of the International Buildin- Code 2021 Edition (IBC) may be obtained from the International Code Council Inc., 900 Montclair Rd, Birmin'-ham,Alabama 35213, Telephone: (888) 422-7233 or at www.iccsafe.or,-. (0 d) It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, improve, convert, demolish, or equip any building or structure in the city, or cause or permit the same to be done, contrary to or in violation of any of the provisions of the International Building Code adopted and incorporated as the Seward building code by this section. WLe� The International Building Code (I.B.C.), 2006 2021 edition, adopted in Subsection A of this section, Chapters 1-12, 14-28, 30-35, and appendix C, are adopted by reference to regulate all occupancies and buildings, with the following revisions: (1) Chapter 1 of the I.B.C. is revised by deleting Sections 104.4, 104.4.4, 101.4.5, 101.4.6, 103, 105.4, 106, 101.4.7, 104.8, 108.4, 107.5, 109.2, 109.4, 109.5, and 110-115; and is revised by deletin,- the references to the "International Enemy Conservation Code (IECC)", "International Property Maintenance Code (IPMC)", "International Private Sewa,-e Disposal Code (IPSDC)", "International Residential Code (IRC)", and "International Wildland-Urban Interface Code (IWUIC) (2) Chapter 1, Subsection 101.2 (Scope), the last sentence of the . paragraph is revised by adding: "as governed by the provisions of AS 18.70.080"; and the exception is revised to read as follows: "Exceptions: 1. Detached one-, two-, and three-family dwellin'-s. 2. Multiple sin-le-family dwellin-s (townhouses) not more than three stories above krade plane in heikht with a separate means of a,-ress and their accessory structures. These structures shall be plan reviewed to the IBC: Fire walls between townhouses may be desi,-ned to meet Section 706 of the IBC or by two one-hour fire resistance-rated wall assemblies tested in accordance with Section 703.2.2 of the IBC., (3) Chapter 1, Seetion . ., is revised by deleting the r-efer-enee to the "IC-C Eleetr-ieal Code" and r-eplaeing it with "Eleetr-ieal Code as adopted by 8 AAC 70.025, as amended as of june 14, 2006 and as amended from time to fim-eL, 81 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (4)-12� Chapter 1, Subsection 101.4.43 (Plumbing)of the I.B.C.is revised by deleting the reference to the "International Plumbing Code" and replacing it with "Uniform Plumbing Code as adopted by SCC 12.05.025 "; (5) 4� Chapter 1, Subsection 102.6 (Existing Structures) of the I.B.C., is revised by deleting the reference to the "International Property Maintenance Code"; 0)� Chapter 1, Section 103 ( Code Compliance Agency), of the I.B.C. is revised by replacing the existing title "DEPARTMENT SAFET-VCODE COMPLIANCE AGENCY" with 'DUTIES AND POWERS OF THE BUILDING OFFICIAL". (7) 6� Chapter 1, Section 103.1 (Creation of Enforcement Agency), is revised by deleting the entire paragraph and title and replacing it with "GENERAL. The official in charge of enforcing the provisions of this code will be known as the Building Official. The Building Official shall have the authority to render interpretations of this code and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose of this code. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in this code." (7) Chapter 1, Section 104.2 (Applications and permits) of.the IBC, is revised by deletin,- the words "and permits"from the heading, and the section is revised to read: "The buildin-official shall receive applications and review construction documents for the on-site erection, alteration, demolition, and movie,-of buildin,-s and structures and, at the a,-ency's discretion, will inspect the premises to enforce compliance with the provisions of this code. (8) Chapter 1, Subsection 105A (Permits), is amended by inserting the phrase "if sueh wor-1 exeeeds $1000 in materials and labor- expense," after- the words ....... or- eause any sueh wor-k- to be done," and before the words "...shall first make appliention to the buil"g 0-f-flie-0-1 ........" is revised by deletin,-the headin,-and replacin-it with "Application for Plan Review (9) Chapter],Section 105.2 (Work exempt from permit) of the IBC Section 105.2 is also revised by addin,-a new Item 14 to the Buildin-subsection to read: "14. Buildin,-s classified as a Group U Occupancy, other than those in Appendix LL, that are not offered for use by persons other than the property owner or the owner's employees, not open to the public, and not containing hazardous materials in excess of those found in Tables 307](1) and 307](2). This exemption includes buildin-s in which the public has no access, such as farm, dairy operations, or greenhouse operations. (10) in Chapter],Section 105.3 (Application for permit) of the IBC, the first sentence is revised to read: "To obtain a plan review approval, the applicant must first file an application in writing on a form furnished for that purpose by the code enforcement a,-ency. (11) Chapter 1, Section 107.2.2 (Fire protection system shop drawin,-s) of the IBC, is revised by addin,- the sentences "Shop drawin,-s shall be sealed by a rezistered desi,-n professional of this state and of appropriate discipline in accordance with AS 08.48, or shall be si,-ned and dated by a fire systems permit holder under AS 18.70.090 and 13 AAC 50.035. At least two sets, one of which may be electronic, of shop drawin,-s shall be submitted The buildin'- official shall retain one set, and one approved set stamped by the buildin- official shall be retained on site durin,-the installation of the system." at the end of the section, 82 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (12) Chapter 1, Section 107.3.1 (Approval of construction documents) of the IBC, is revised to read: "One set of bound or one electronic set of construction documents so reviewed shall be retained by the building official. 13 The Fee for each permit shall be as set forth in Table 1-A. When construction documents are required in accordance with Section 107, a plan review fee equivalent to 65% of the Permit Fee, as shown in Table 1-A, shall be paid. TOTAL VALUATION FEE TABLE 1-A BUILDING PERMIT FEES Total Valuation Fee $1.00 to $500.00 $23.50 $501.00 to $2,000.00 $23.50 for the first$500.00 plus $3.05 for each additional $100.00, or fraction thereof,to and including $2,000.00 $2,001.00 to $25,000.00 $69.25 for first$2,000.00 plus $14.00 for each additional $1000.00, or fraction thereof,to and including $25,000.00. $25,001.00 to $50,000.00 $391.25 for the first$25,000.00 plus $10.10 for each additional $1,000.00,or fraction thereof,up to and including $50,000.00 $50,001.00 to $100,000.00 $643.75 for the first$50,000.00 plus $7.00 for each additional $1,000.00,or fraction thereof,up to and including $100,000.00. $100,001.00 to $500,000.00 $993.75 for the first$100,000.00 plus $5.60 for each additional $1,000.00,or fraction thereof,up to and including $500,000.00. $500,001.00 to $1,000,000.00 $3,233.75 for the first$500,000.00 plus $4.75 for each additional $1,000.00,or fraction thereof,up to and including $1,000,000.00. $1,000,001.00 and up $5,608.75 for the first$1,000,000.00 plus $3.15 for each $1,000.00,or fraction thereof. Other Inspections and Fees 1 Inspections outside of normal business hours $47.00 per hour 2 Inspections for which no fee is specifically indicated $47.00 per hour 3 Additional plan review required by changes, additions or revisions to plans (minimum charge one-half hour) $47.00 per hour 4 For use of outside consultants for plan checking and inspections, or both - Actual Costs (14) Chapter 1, Section 109.3 (Permit valuations) of the IBC, is revised to read: "Buildin-plan review valuations. The applicant for a plan review involvin-an addition to an existin,-structure, a remodel of an existin- structure, or a fuel system shall provide an estimated building construction value at the time of application. The valuation shall include the total value of work, includin-desikn, materials and labor for which the plan review is bein,-issued. The total value of work must include the electrical, -as, mechanical, and plumbin- equipment and permanent systems, includin- fire protection systems. If in the opinion of the buildin- official, the 83 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 valuation is underestimated on the application, the buildin-official shall deny the plan review, unless the applicant can show detailed estimates that meet the approval of the buildin-official. The buildin-official shall set the final buildin-construction valuation. The valuation for all new construction not involvin- remodel work or additions to existing structures must be based on the valuation schedule established in 13 AAC 50.027. (11) Chapter 1, Seetion 106.1.1.1 (Fire proteetion system shop drawings) of the ., revised by adding the sentenee "A eopy of the approved stamped plans are to be retained site." at the end of the seetion; review fee equivalent to is of the Permit Fee, as shown in Table 1 A, shall be paid. ( ) 15 Chapter 1, Section 1076.3.1 (Approval of construction documents) of the I.B.C., is revised to read: "One set of bound construction documents so reviewed shall be retained by the building official."; (" 16 Chapter 1, Subsection 1076.3.44 (General), third paragraph, first sentence of the I.B.C. is revised to read: "Structural observation shall be as required by Section 1709." " 17 The Fee for each permit shall be as set forth in Table 1-A. ( ) 18 Chapter 1, Section 108-7.3 (Temporary power) of the I.B.C., is revised by deleting the reference to the 1CC E1eetr-i^a'�NFPA 70" and replacing it with "Electrical Code as adopted by SCC 12.05.035 8 AAC 70.025amended ., of Tune 14, 2006 and ., amended from +;., to time". (4-7-) 19 Chapter 1, Section 113-2.1 (General) is amended by adding the words "consisting of the City Council of the City of Seward." after the words "hereby created a board of appeals." The period after the word "appeals" is deleted and the third sentence starting with the words "the board of appeals shall...." is deleted in its entirety. The last sentence is also deleted in its entirety. (�8} 20 Chapter 1, Section 1132.3, (Qualifications)is deleted in its entirety. { } 21 Chapter 2, Subsection 201.3 (Terms defined in other codes) of the I.B.C. is revised by deleting the references "International Plumbing Code": (2-0) 22 Chapter 2, Section 202 (Definitions) of the I.B.C. is revised by adding a definition to read: : "EXISTING BUILDING (EXISTING CONSTRUCTION OR EXISTING STRUCTURE). Any buildin-or structure: (A) for which the start of construction commenced before the earlier of: (i) the effective date of the community's first code, ordinance, or standard, or (A)jiawas erected before December 5, 1956;-Of- (B) that received a lezal buildin- review. The certificate of fire and life safety or plan review number shall be provided" (9) was ereeted before the adoption of the 2006 inter-national Building Code, 2006 inter-national Fire Code, 2006 inter-national Meehanien! Code and the 2006 internationat Fuel Gas Code and eomplies with the building eode regulations in effeet at the time o ee Betio (23) Chapter 2, Section 202 of the IBC, is revised by addin,- a definition to read: "BED AND 84 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 BREAKFAST. A building constructed as a single family home that is the owner's primary residence and contains more than five sleeping rooms, including all sleeping rooms located in cabins on the same property. A bed and breakfast requires a plan review and will be considered a commercial property.", (24) 24 Chapter 2, Section 202 of the IBC.', is revised by adding a definition to read: "NONCOMPLIANT OR UN-REVIEWED EXISTING BUILDING. Any building or structure for which the start of construction commenced without a legal plan review after the earlier of (A) the effective date of the community's first code, ordinance, or standard; or (B) December 5, 1956."; { } 25 Chapter 3 Section 305.2 305 (fie-Educational group E) of the I.B.C., is revised by adding a new Section 305.2.4 to read: , or- por- thereof-, for eduentional, >older- than two and one half yefws of > shall b " "305.2.4 Family child care homes. Family child care homes occupied as their primary residence (Group R-3) operating between the hours of 6:00 a.m. and 10:00 p.m. may accommodate a total of*12 children of any age without conforming to the requirements for Group E occupancy, except for fire extinguishers as required by Section 906, smoke alarms as required by Section 907.2.11.2, carbon monoxide alarms as required by Section 908, means of egress requirements of Section 1003, and emergency escape and rescue openings, as required by Section 1029, in napping or sleeping rooms, and fire extinguisher requirements as described in the International Fire Code (IFC), as adopted by reference in 13 AA 50.025, including children related to the staff. All stories that are not at grade plane shall have access to two exits."; " 26 Chapter 3, Section 305.2 (Group E, d7Day care) of the I.B.C., is revised by adding a new exception to read: "Exception: Family child care homes (Group R-3) operating between the hours of 6:00 a.m. and 10:00 p.m. may accommodate a total of 12 children of any age without conforming to the requirements of this regulation (Group E occupancy), except for smoke alarms as described in Subsection 907.240, carbon monoxide detectors and alarms are described in Section 422, means of egress requirements of Section 1003, including emergency escape and rescue openings (as required by Section 1026)in napping or sleeping rooms, and fire extinguisher requirements as described in the International Fire Code; (27) Chapter 3,Section 305(Educational group E)of the IBC, is revised by adding a new Section 305.4 to read: "305.4 Combination shops. Shop classrooms that combine wood working with any other fabrication using flame or causing spark shall be considered an F-1 occupancy and must be separated from the E occupancy in accordance with Table 602. " 28 I.B.C. Chapter 3, Section 308.2 (Institutional Group I-1) is revised by adding a new paragraphbqfter the first and seeond paragraphs to read: "Facilities within this occupancy classification that have occupants needing physical assistance to respond in emergency situations must comply with Section 423.'; (24) !.B.C. Chapter 3, Seetion 308.3 (Group 12) revised by ehanging the last sentene A &eifity stieh as the above with five or- fewer- !uding per-sons related the staff-, shall be elassified as a Group R 2. 85 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 {2-5} eare f4eility that provides eare on a 24 hour basis to more than five ehildr-en of two and one half years of age or less, ineluding ehildr-en related to the staff, shall be elassified as Group I-2.••• • ., is revised to read! "A f4eilify sueh as the above with five or fewer per-sons, ineluding per-sons (2-7-)(29) Chapter 3, Section 310.1 (Residential Group R) of the I.B.C., is revised by adding a new paragraph betweenafter the first and seeond paragraphs to read: "For facilities within this occupancy classification that have occupants needing physical assistance to respond in emergency situations, see Section 42043."; (38) (30) Chapter 4, Section 406.3.2.14-.4-(Dwelling unit sSeparation) of the I.B.C., paragraph 1 is revised by deleting "gypsum board, not less than 1/2 inch (12.7 mm) in thicknessgypstHn board" and replacing it with "5/8 inch(15.88 mm) Type X gypsum board"; (2-9-) (31) Chapter 4, Section 412.2.1 (Exterior walls) of the I.B.C., is revised by deleting "30 feet (9 144 mm)" and replacing it with "20 feet(6,098 mm)"; (32) Chapter 4, Section 412.3.1 (Exterior walls) of the IBC, is revised by deletin,- "30 feet(9144 mm)" and replacin,-it with "20 feet(6,098 mm) (34) 33 Chapter 4, Subsection 415.9.26-.3 of the I.B.C., is revised by deleting the reference to the "International Fuel Gas Code" and replacing it with "Plumbing Code as adopted by SCC 12.05.025 " " 34 Chapter 4, Section 415.9.36-.4 of the I.B.C., is revised by deleting the reference to the "International Plumbing Code" and replacing it with "Plumbing Code as adopted by SCC 12.05.025 " (32-) 35 Chapter 4, Section 415.11.1.88-.2-.8-.4-of the I.B.C. is revised by deleting the reference to the "NFPA 70IC-C--FAee4r4ea:-=�" and replacing it with "Electrical Code as adopted SCC 12.05.035 4 A A C-70.025 as amended ., of Tune 14,2006 and ., amended from time t9 time."; (33) 36 Chapter 4 (Special Detailed Requirements Based on Use and Occupancy) of the I.B.C., is revised by adding new Section 4249 (Special Security Requirements for Elevated Buildings), and Section 42430 (Carbon Monoxide Detectors and Alarms), and Section 423 (Oee,,.,ants to read: SECTION 42-47-429 SPECIAL SECURITY REQUIREMENTS FOR ELEVATED BUILDINGS 421.1 429.1 All elevated buildings with the lower floor level above grade and open on the sides must be fenced around the building exterior or have skirting below the exterior walls to prevent unauthorized access, if*a buildin,-is hikher than two foot to the underside of floor framing. Exceptions: 1. Normally unoccupied buildings; 2. Buildings with F, H, S, and U occupancies. 86 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 3. All occupancies within an industrial area that is secured and there is no public access. SECTION 4227M CARBON MONOXIDE DETECTORS AND ALARMS 422.1 (Carbon Monoxide Detectors and Alarms) The provisions of this section shall apply to Groups I-1, I-2, and all R occupancies. At least one carbon monoxide detector or alarm shall be installed on each floor level. If a floor level contains bedrooms or sleeping rooms, at least one detector shall be located in the immediate vicinity of the sleeping area, outside of the bedrooms or sleeping rooms. Carbon monoxide detectors and alarms shall be installed in accordance with their listing. The alarm shall be clearly audible in all sleeping rooms, even if the intervening doors are closed. Exceptions: 1 Carbon monoxide detectors and alarms are not required in dwelling units and structures that have no combustion appliances, attached garage, or other vehicle parking within 25 feet of any direct opening. 2 Carbon monoxide detectors and alarms are not required in dwelling units and structures that have only direct vent combustion appliances, and no attached garage, or other vehicle parking within 25 feet of any direct opening. 3 Carbon monoxide detectors and alarms are not required if all combustion equipment is located within a mechanical room separated from the rest of the building by construction capable of resisting the passage of smoke. If the structure has an attached and enclosed parking garage, the garage shall be ventilated by an approved automatic carbon monoxide exhaust system designed in accordance with the International Mechanical Code as adopted in SCC 12.05.031. 422.2 Interconnection. In new construction, all carbon monoxide detectors and alarms located within a single dwelling unit shall be interconnected in such a manner that actuation of one alarm shall activate all of the alarms within the individual dwelling unit. 422.3 Power source. In new construction, carbon monoxide detectors and alarms shall receive their primary power from the building wiring if the wiring is served from a commercial source, and shall be equipped with a battery backup. Wiring shall be permanent and without a disconnecting switch other than what is required for overcurrent protection. In existing construction, carbon monoxide detectors and alarms may be powered by battery or a cord-and-plug with battery backup. OCCUPANTS NTS NEEDING ilING PHYSICAL T ASSISTANCE A NC 423.1 Applienbility. The provisions of this seetion apply to all Groups 1 1 and R 4 es where the oeetipants need physieal assistanee f-Fom staff or- others to respond 87 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 423.2 Definitions. in this seetion "Evaeuntion Capability" means the ability of oeeupants, residents, and staff as a group either to evaeunte a building or to reloente from the point of oeeupaney to a point of safety; "Point of Sa"" means a loention that (a) is exterior- to and away from a building; or (b)Irs sprinkler system and that is either (1) within an exit enelosure meeting the requirements o Seetion 1020; or- (2) within another- por-tion of the building that is separated by smoke partitions meeting th ints of Seetion 710, with not less than a one half hour- fire- resistanee rating, and of the building has neeess to a means of eseape or exit that eonforms to the requireem-6-4mits of-this eode and does not require return to the area of the fire." 423.3 Fire DAM And Evaettation Capability Determination. The initial determination of evaeuntion eapability will be deter-mined by a fire drill eondueted by a fire eode offleial or- by an employee of the Depar-tment of Health and Soeial Ser-viees r-esponsible for-fieensing the f4eility. Changes to the evaeuntion eapabilify will be made by a fire eode offleial, based on-ft reeord of fire drills eondueted by the f4eility staff-. The drills will be eondueted six times -a year on a bimonthly basis,with at least two drills eondueted during the night when residen are sleeping. Reeor-ds must indieate the time taken to r-eaeh a point of safety, date and time of the drill, loention of simulated fire origin, eseape paths used, and eomments relating to 423.4 Evaeuntion Capability and Fire Proteetion Requirements. Fire proteetion- 42-3.4.1- --Prompt Evaeuntion Capability. Evaeuntion eapability of three minutes or less, eapabilify,the requirements of the eode for Groups 1 1 or R 4 oeeupaneies must be followed. 423.4.2 Slow Evaettation Capability. Evaettation eapability of more thaft three but less than 14 minutes indientes slow evaeuntion eapab 0 fify. in f4eilifies maintaining slow evaeuntion eapabilify, the f4eilify must be pr- I I I I � ', 0 an automatie smoke deteetion system, using addressable smoke deteetors,designed and installed in neeor-danee with the provisions of t eode and N.F.P.A. > with quiek response or- residential sprinklers, installed in neeor-danee with seetion . . . ; (b) one half hour- fire r-esistive eonstr-tieti throughout the faeifify; and (e) direet egress from slee. i - for- oeeupants needing vin a 3 feet 60 inehes wide door; or (ii) if the sleeping rooms are separated from the rest of the building by smoke partitions installed in neeor-danee with Seetion 710,by egress windo eonforming to the provisions of Seetion 1026-. (34) 37 Chapter 5 (General Building Heights and Areas), of the I.B.C. is revised by adding a new Section 501.3 501.2 to read as follows: "501.2 Location on property. Buildings must adjoin 88 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 or have access to a permanent public way or yard on not less than one side. Required yards by this section must be permanently maintained."; .B.C. is revised by adding a new Seetion 504.45to read! "Day eare f4eilifies. Fneitifies that are operated i residenee (Group R 3) and a tip to a total of 12 ., ehildr-en of any age may use the seeond story of the building without providing an autofflatie spr-inkler-system or-eomplying with Table 302.3.2,Table 602, and the Type V-A r-equir-ements set out in Tables 503, if all other applienble legal provisions for a Group E oeeupaney are ffwtilk (36) Chapter 5, Table 508.2 (Ineidental Use Areas) of the ., is revised by ehanging the wording in the first bloek tinder-the left eolumn to r-ead.2 "Fur-naee rooms in Gr-oup E,1, and R !, R2, and R4 o regardless of Btu input, and fur-nnee rooms of all other- *es where t - !nr-gest pieee of equipment is over- 400,000 Btu per- hour- input"; (38) Chapter 5, Table 509.1 (Incidental uses) of the IBC, is revised by chap'-in'-the wordin'-in the first block under the left column to read: "Furnace rooms in Group E, I, and R-1, R-2, R- 3, and R-4 occupancies re-ardless of Btu input, and furnace rooms of all other occupancies where the lamest piece of equipment is over 400,000 Btu per hour input (39) Chapter 7,Section 706.6 of the IBC, is revised by addin,-a paragraph before the exceptions to read: "If buildin-s are constructed on pifin,-s, the first floor is above-round, and the area below is completely open to the outside (not affected by skirting), a fire wall may terminate at the first floor level if it complies with the followin'-: 1. The wall must terminate on a structural support that extends completely the len,-th of the wall. 2. The structural support must rest upon and be completely supported by pilin-s. 3. The rest of the fire waft must comply with IBC Section 706.2. 4. If there is concealed space between the structural supports that are directly supported by piles, the concealed space must have the same fire wall protection ratim- for the depth of the concealed space. . ., is r-evised to r-ead+ "Draftstopping must be provided in atties, mansards, overhangs, or other eoneenled roof spaees of Gr-oup R 2 buildings with three or- more dwelling units and in all Gr-oup R4 buildings. The intery i - between any two dr-aftstops or walls must be designed for above, and in line with, tenant and dwelling separation walls that do not extend to the tinder-side of the r-oof sheathing above."; . ., is revised four stories in height may be installed so that the area between dr-aftstops that extends from the eeifing to the roof does not exeeed 3,000 square feet, and the greatest horizontal dimension does not exeeed 60 feet. The dr-aftstops do not have to be loented direetly above or in line with walls separating tenant spaees, unless part of eonstr-tietion r-equir-ed by other- 89 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 . . i of this eode. Adequate er-oss ventilation must be pr-ovided in aeeor-danee wi �eetion 1203. (40) Chapter 7, Section 718.4.2 (Groups R-1 and R-2) Exception 3 of the IBC, is revised by addin,-a new sentence at the end of the exception to read: "Adequate cross ventilation must be provided in accordance with Section 1202.2.1. (39) Chapter 8, Seetion 806.1 (General requi -the !.B.C., is revised by adding "or treated by a method appr-oved by the fir-e eodde- eqffillipeio-�.if at the end of the four-th paragraph; 41 Chapter 9, Section 901.5(Acceptance tests) of the IBC, is revised by adding a new sentence at the end of the paragraph to read: "Within 30 days after the completion of the installation, a Copy of the acceptance test certificate must be forwarded by the firm conductin,- the test to the division of fire and life safety or the deferred authority Navin'-jurisdiction. (40) Chapter 9, Subseetion 903.2.2 (Group E) of the!.B.C., is revised to read! "Group E. An fititomfitie spr-inkler- system must be pr-ovided thr-oughout fill buildings with Gr-oup E 0 es. An automatie sprinkler system must also be provided for every portion of ful a! buildings below the level of exit diseharge. Exee mt (1) Buildings with Gr-oup E oeetipfineies h !tipfint load of 49 or- less.- Day eare uses that are lieensed to eare flor than five per-sons betwee the of 10 p.m. find 6 fi.m. must be equipped with fin fititomfitie spr-inlier- system desig*M the building offieial." (42) Chapter 9, Section 903.2.3 (Group E) of the IBC, is revised to read: "Group E. An automatic sprinkler system must be provided throe,-hoot all buildin,-s with Group E occupancies. The use of a fire wall or barrier does not establish a separate buildin,-or fire area Apr purposes of this section. As determined by the buildin,-official, an automatic fire-extimmishin-system approved under Section 904 shall be installed in a Group E occupancy in accordance with Section 903.2.3 whenever alterations or additions are made to an existin,- structure containin,- a Group E occupancy. Exception:Buildin,-s with Group E occupancies Navin,-an occupant load of 50 or less. An automatic sprinkler system must also be provided for every portion of educational buildings below the level of*exit discharge. Family child care homes that are licensed to care for more than five persons between the hours of*]0:00 P.m. and 6:00 a.m. must be equipped with an automatic sprinkler system desi,-ned and installed as described in Section 903.3.1.3 or an equivalent system approved by the buildin,- o iciaL" " cr-oup R. An automatie sprinlier system must be installed in Group R as required in 903.2.7.1 through ". (42) Chapter 9 of the !.B.C. is revised by adding a new Seetion 903.2.7.1 to read! " Gr-oup R 1. An automatie spr-inkler- system or- a residential spr-inlder- system installed in 90 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 aeeor-dafiee with Seetion 903.3.1.2 must be pr-ovided thr-oughout all buildings with a Gr-oup Dire (43) Chapter 9, Section 903.2.8 (Group R) of the IBC, is revised to read: "903.2.8 Group R. An automatic sprinkler system installed in accordance with Section 903.3 shall be provided throe,-hoot buildin-s containin- Group R occupancies as provided in this section. 903.2.8.1 Group R-1. An automatic sprinkler system shall be provided throe,-hoot all buildin-s that contain an R-1 occupancy. 903.2.8.2 Group R-2. An automatic sprinkler system shall be provided throe,-hoot all buildin-s that contain an R-2 occupancy. Exceptions: 1. Buildin,-s that are no more than two stories in heikht, includin'- basements and contain four or fewer dwellin-units. 2. Buildin,-s that are no more than two stories in heikht, includin- basements and contain 16 or fewer sleepin,-rooms. For the purpose of this section, fire walls may be used to create up to three separate attached buildin-s. Any additional buildin-s must be physically separated in accordance with IBC Table 602. 903.2.8.3 Group R-4. A 13R automatic sprinkler system shall be provided throe'-hoot all buildin-s that contain an R-4 occupancy. (43) Chapter 9 of the !.B.C. is revised by adding a new Seetion 903.2.7.2 to read! '903.2. Group R 2. An automatie sprinkler system or a residential sprinider system installed in neeor-danee with Seetion 903.3.1.2 must be provided throughout all buildings with a Group R 2 fir-e area that are more than two stories in height, ineluding basements, or- that have more than sixteen dwelling units or sleep rooms."; Group R 4. An automatie sprinkler system or a residential sprinider system installed in neeor-danee with Seetion 903.3.1.2 must be provided throughout all buildings with a Group R 4fire (45.) 44 Chapter 9, Subsection 903.3.1.1 of the I.B.C., is revised by adding a new Subsection 903.3.1.1.23 to read: "Elevator Hoist Ways and Machine Rooms. When the provisions of this code require the installation of automatic sprinkler systems, the installation in elevator hoist ways and machine rooms must occur as described in N.F.P.A. 13-2007, Elevator hoist ways and machine rooms), and adopted by reference, and American Society for Mechanical Engineers (A.S.M.E.) A17.1 Safety Code for Elevators and Escalators as adopted by 8 AAC 77.005, as amended as of June 14, 2006 and ., amended from time to time"; Exception: Sprinklers are not required in an elevator machine room where the machine room is: (1) separated from the remainder of the building as described in Section 3006.4; (2) smoke detection is provided in accordance with N.F.P.A. 72-2007 and adopted by reference: and, (3) notification of alarm activation is received at a constantly monitored location."; (46) 45 Chapter 9, Subsection 903.3.5 (Water supplies) of the I.B.C. is revised by deleting the reference "International Plumbing Code" and replacing it with "llni orm Plumbing Code as 91 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 adopted by SCC 12.05.025 8 A A C-63.010 as amended ., o fDe,.,....ber-6,2 and ., amended from time to time"; (47-) 46 Chapter 9, Section 903.3.6 (Hose threads) of the I.B.C., is revised by deleting "the fire code official" and replacing it with"AS 18.70.084 "; (47) Chapter 9, Section 904.1 (General) of the IBC, is revised by addin'- a new sentence at the end of the paragraph to read: "Within 30 days after the completion of the installation, a copy of the acceptance test certificate must be forwarded by the firm conductin-the test to the division of fire and life safety or the deferred authority Navin'-iurisdiction.", (48) Chapter 9, Subsection 904.3.1 (Electrical wiring) of the I.B.C. is revised by deleting the reference "NFPA 70zC-C-Ueetr ��'�" and replacing it with "Electrical Code as adopted by SCC 12.05.035 8 A A C- 7n 02c amended ., of une 1 n 2006 and ., amended from time���sacr , ccrn-vnr-carre-t9 time; (49) Chapter 9, Section 906.1 (Where required) of the IBC, is revised by deletin,-the exception in item 1, (49) Chapter 9, Seetion . ., is revised by adding the follow 0 ng required eonstruetion doeuments for plan review! 12. System Aser .; (50) Chapter 9, Section 907.2.3 (Group E) of the IBC, Exception I is revised by replacin'- "50" with "49 (54) 51 Chapter 9, Section 907.2.3 (Group E) of the I.B.C., is revised by deleting Exception 3; " 52 Chapter 9, Subsection 907.2.3 (Group E) of the I.B.C., is revised by adding a second paragraph to read: "Rooms used for sleeping or napping purposes within a day care use of a Group E occupancy must be provided with smoke alarms that comply with Section 907.2.10.101.2."; (5-2) 53 Chapter 9, Section 907.2.6.1 (Group I-1) of the I.B.C., is revised by deleting Exception 1; (5-3) 54 Chapter 9, Subsection 907.2.104 (Ssingle_ and multiple-station smoke alarms) of the I.B.C., is revised by adding a second paragraph to read: "When a plan review is required for an existing Group R occupancy, smoke alarms must be installed as described in Section 907.2.101.1."; ., is r-evised by deleting44te (55) Chapter 9, Section 907.2.11.5 (Interconnection) of the IBC, is revised by addin,- a new paragraph to read: "If more than 12 smoke alarms are interconnected the interconnecting means must be supervised in accordance with Electrical Code as adopted by SCC 12.05.035. {5-5} 56 Chapter 9, Subsection 907.156.1 (Wiring)of the I.B.C.,is revised by deleting the reference "IC-Cleetr-ieal 2o&NFPA 70" and replacing it with "Electrical Code as adopted by SCC 12.05.0354 A A C 70.025 as afflen-ded- ., of Tune 14,2006 and ., amended from time-t9 time"; (57) Chapter 9, Section 907.7.2 (Record of completion) of the IBC, is revised by addin,- a new sentence to read: "Within 30 days after completion of the installation, a copy of record of completion must be forwarded by the firm conductin-the acceptance test to the division of fire and life safety or the deferred authority Navin,-iurisdiction. ., is r-evised by adding 92 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 aeeor-danee with N.F.P.A. 72 2007 must be forwarded by the firm eondueting the test to t state fire marshal or the deferred jurisdietion having authority within 30 days of the eompletion of the installation." (57) Chapter 9, Subseetion 909.11 (Power systems) of the !.B.C., is revised by deleting the referenees '4CC Eleetrien! Code" and repineing them with amended rnfrom rtime-t9�rrr� (58) Chapter 9, Subsection 909.12.247 (Wiring) of the I.B.C., is revised by deleting the reference "NFPA 70zC-C—Ueetriread Codd_e" and replacing it with "Electrical Code as adopted by SCC 12.05.035- A A!"7n•n7c as amended ., of Tune 1 4,2006 and ., amended from time t9 time"; (59) Chapter 9, Subsection 909.16.3 (Control action and priorities) of the I.B.0 exception, is revised by deleting the reference "NFPA 70I'�Ieetpie�'�" and replacing it with"Electrical Code as adopted by SCC 12.05.035-8-AAC 70.025 as amended ., of Tune 14, 2006 an ., amended from time to time"; (60) Chapter 9, Seetion 910.1 (General) of the ., is revised by deleting Exeeption 2; (60) Chapter 9, Section 909.18 (Acceptance testin-) of the IBC, is revised by addin,- a new sentence at the end of the paragraph to read: "Within 30 days after the completion of the installation, a copy of the acceptance test certificate must be forwarded by the firm conducting the test to the division of fire and life safety or the deferred authority Navin,-iurisdiction. (6-7) 61 Chapter 10, Subsection 1006.3.34-94 (Eyress based on occupant loam number of exits) of the I.B.C., is revised by adding an exception to read: "Exception: Basements or the first level below the first story in all occupancies except Group R-3 occupancies, used exclusively for the service of the building, may have access to only one exit. Any other use of the basement, or first level below the first story must have at least two exits arranged as described in Section 10164.2. For purposes of this exception, storage rooms, laundry rooms, maintenance offices, and similar uses may not be considered as providing service to the building."; (6-5) 62 Chapter 10, Section 1007.1.24-5-.2-.2(Three or more exits or exit access doorways) of the I.B.C., is revised by adding an exception to read: "Where access to three or more exits is required, the separation distance of the third exit door or exit access doorway shall not be less than one-third of the length of the maximum overall diagonal dimension of the area served."; " 63 Chapter 10, Subsection 1009.473_2 (Stairway width) of the I.B.C., is revised by adding exception-3 to read: "Exception: Stairs or ladders used only to attend equipment are exempt from the requirements of this section."; (62) 64 Chapter 10, Section 10W.11.7.2-5-.2 (Outdoor conditions) of the I.B.C., is revised by adding a sentence: "In occupancies other than Group R-3 and Group U occupancies that are accessory to Group R-3 occupancies, surfaces and landings which are part of exterior stairs in climates with snow or ice shall be designed to minimize the accumulation of the snow or ice; (66) 65 Chapter 10, Table 1020.24-74(Corridor Fire-Resistance Rating) of the I.B.C., is revised by adding a note to read: "R Occupancies shall be allowed to have a one-hour rated corridor without a sprinkler system when the corridor 1 serves any occupant load greater than 10; 2 serves less than 17 dwelling units; and 3 is less than three stories in height."; 93 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (63) Chapter- 10, Seetion . ., is r-evised by adding a sentenee! "in oeeupaneies other than Group R 3 and Group U oeeupaneies that are neeessory to Group R 3 oeeupaneies, surfaees and landings that are part of exterior- ramff in elimates with snow or- iee shall be designed to minimize the fteeUmulation of the snow (66) Chapter 10, Table 1020.2 [1018.11 (Corridor fire-resistance ratin-) of the IBC, is revised by insertin-a superscript "e" footnote reference after "R" in the "occupancy" column and is revised by addin,-footnote "e" to read: "R occupancies with an occupant load-reater than 10 shall have one-hour rated corridors when the R occupancies are allowed to not have a sprinkler system and 1. serve four or fewer dwellin-units or 16 or fewer sleepin'-rooms, and 2. are not more than two stories. (64} 67 Chapter 10, Section 1021.1443 Genera ) of the I.B.C., is revised by adding a sentence: "Exterior balconies shall be designed to minimize accumulation of snow or ice that impedes the means of egress."; (68) Chapter 10, Section 1031.2 (Where required) of the IBC, is revised by replacin'- the first sentence to read: "In addition to the means of e-ress required by this chapter provisions shall be made for emergency escape and rescue openings in Group R and I-1 occupancies. (68) 69 Chapter 10, Section 1031.2244 (Where required) of the I.B.C., is revised by deleting Exceptions 1-,-2-, and 3 ; ("} 70 *Chapter 11, Section 1101.1 (Scope) of the I.B.C., is revised to read: by deleting the first sentenee and adding sentenees at the end of the seefin-H to- Fe-fld-- "Complianee review by the state fire mar-shal's offiee is limited to the r-eview of the aeeessible r-oute, means of egress. mts of the eode, and at least one neeessible toilet room along the neeessible route. ee with the requir-emen4s of this ehapter- and other- pr-ovisions within this eode F0 of per-sons with physien! disabilities is the exelusive responsibility of the owner- of the strueture or design professional of reeord. An advisory plan be obtained coordinator- for-Amer-kans with Disabilities Aet at 801 West 10'Avenue, Suite A,juneati,Alaska 998 �. rnw0�r Compliance with the requirements of this chapter and other provisions within this code for accessibility of persons with disabilities is the exclusive responsibility of the owner of the structure or desi,-n professional of record (7-0.) 71 Chapter 12, Subsection 1202.4.3.23-3.2 (Conditioned spaces£) of the I.B.C., Exception 4, is revised by deleting "in accordance with the International Energy Conservation Code"; " 72 Chapter 12, Subsection 1204-5.4.1 (Controls) of the I.B.C., is revised by deleting the reference "NFPA 70IC-C-TIeetFie�'�" and replacing it with "Electrical Code as adopted by SCC 12.05.0358 AAC 70.025, as amended ., of Tune 14, 2006 and ., amended from time-to tiftwil. (72) Chapter 12, Seetion . ., is revised by deleting th r-efer-enee to the "Inter-national Plumbing Code" and r-eplaeing it with "Plumbing 94 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 adopted by 8 AAC- • > 2003 and as amended from time to ., is revised by deleting the words "in neeor-danee with the inter-national Energy Conservation Code" from the last sentenee of the first paragraph; 74 Chapter 14, Subsection 1404.3 (Vapor retarders)of the I.B.C. is revised by deleting the phrase "The appropriate climate zone shall be selected in accordance with Chapter 3 of the International Energy Conservation Code." And replacing it with, "The appropriate climate zone for the Kenai Peninsula is Climate Zone 7." ., is revised by deleting t r-efer-enee to the "IC-C Eleetr-ieal Code" and r-eplaeing it with "Eleetr-ieal Code as adopted by 8 AAC- 70.025, as amended as of june 14, 2006 and as amended from time to time!!-,- (75) Chapter 15, St-Hsection 1502_-3-4 (Roof drainage) of the I.B.C., is revised by deleting the reference "International Plumbing Code" and replacing it with "tlni orm Plumbing Code as adopted by SCC 12.05.025 8 A A C 63.010,as amended ., ,.1•n,.,.,.mber 6,2 and ., amended from time to time"; (76) Chapter 16, Section 1601.1 (Scope) of the I.B.C., is revised by adding a second paragraph to read: "This chapter is adopted as design criteria for the structural safety of buildings constructed under this code. Review for conformance with this criteria is not performed by the office of the state fire marshal. The Buildin,-Department does not perform review for conformance with these criteria. Compliance with the requirements of this chapter, other provisions in this code for structural design, the Alaska Administrative mist...,., Order- No. 175, local government flood reduction ordinances, and federal oversight and authority through the Federal Emergency Management Agency (FEMA)National Flood Insurance Program(NFIP)under C.F.R. 44,Parts 59 -60,revised as of oElober- 1,2006,is the exclusive responsibility of the building owner or design professional of record." Information re,-ardin,-the National Flood Insurance Prozram is available from the Department of Commerce, Community, and Economic Development, division of community and rezional of f airs at https.11www.commerce.alaska.,-ov/web/dcra/ Plannin,-LandMana,-ement/FloodplainMana,-ement.aspx. Information on approaches and -rants for mitikatin- natural hazards in construction, includin- seismic hazards, is available throe,-h the Department of Military and Veterans'Affairs, division of homeland security and emer,-ency mana,-ement at http://www.ready,alaska you "; (77) Chapter 16, Subsection 1608.1 of the I.B.C., is revised by deleting "Design snow loads shall be determined in accordance with Section 7 of ASCE 7, but the design roof load shall not be less than that determined by Section 1607' and replacing it with "Design snow loads in the City of Seward shall be no less than 80 pounds/sq. ft.,'; (78) Chapter 17, Subsection 1701.1 (Scope) of the I.B.C., is revised by adding a second paragraph to read: "The provisions of this chapter are adopted as criteria to guide the owner and the registered design professional in meeting the tests and special inspections necessary to assure conformance with the applicable standards adopted under this code. Tests and inspections required by this code are not performed by the City of Sew Building Department, but are the responsibility of the 95 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 building owner or design professional of record. The findings of these tests and inspections must be kept for the life of the building."; (79)Chapter 27, Subsection 2701.1 (Scope)of the I.B.C.,is revised by deleting the reference"ICC Electrical Code" and replacing it with "Electrical Code as adopted by SCC 12.05.035.E AAC 70.025, as amended ., of T,ine 14, 2006 and ., amendedf-Fomtime to time"; (80) Chapter 27, Section 2 701.1 (Scope) of the IBC, is revised by adding a new sentence at the end of the section to read: "Electrical weather heads must be installed on the-able ends when a metal roof is installedL", (" 81 *Chapter 27, Subsection 27012-.4 Seo elation)of the I.B.C.,is revised by deleting the reference to the "NFPA 70ICC Zeetri^-A'�" and replacing it with "Electrical Code as adopted by SCC 12.05.0358 A A C- 70.025 as amended ., of itine 14, 2006 and ., amended from time to time"; (84-) 82 Chapter 31, Section 3103.1 (Temporary Structures: General) of the I.B.C., the first sentence is revised to read: "The provisions of this section apply in deferred jurisdictions as allowed under 13 AAC 50.075 only, for structures other than tents and membrane structures, erected for a period of less than 180 days."; (83) Chapter 31, Section 3103.2 (Construction documents) of the IBC, is revised by adding a second sentence to read: "Structures of less than 300-120 square feet in floor area that are desi,-ned for the specific purpose of providin-an enclosure for non-hazardous equipment, and not containin- hazardous materials in excess of those found in Tables 307](1) and 307](2) are not required to be sealed by a rezistered desi,-n professional (8-2) 84 Chapter 31 of the I.B.C. is revised by deleting Section 3107 (Signs) and Section 3 no (Swimming Pool Enelostwes and Safety Deviee&); (" 85 Chapter 33, Section 3305.1 (Facilities required) of the I.B.C., is revised by deleting the reference to the "International Plumbing Code" and replacing it with "tlni orm Plumbing Code as adopted by SCC 12.05.025 8 A A C 63.010 as amended ., of Deeember 6,2 and ., amended from time to time"; (84) Chapter 34, Seetion 3401.3 of the !.B.C., is revised to read.! "Complianee with other eomply with the provisions for alterations, repairs, additions, and ehanges of o I . the inter-national Fire Code (2006 Edition) as adopted by r-efer-enee; the Plumbing Code as adopted by 8 AAC 63.010, as amended as of Deeember 6, 2003 and as amended from time to time; the inter-national Aleehanien! Code as adopted by referenee; and the Eleetrien! Code as adopted by 8 AAC 70.025, as amended as of june 14, 2006 and as amended from time to (85) Chapter 34, Seetion 3403.1.1 (Flood hazard areas)of the!.B.C.,is revised to read! "This Seetion 3403 is adopted as er-iter-ia to guide the owner- or- the registered design pr-ofessio of reeord. Plans are not reviewed by the offlee of the state fire marshal for- eomplian compliftnee with the ts of this seetion, Alaska Administrative Order- No. 175, loeal government floodd ordinanees, and federal oversight and authority through the Feder-a! Emer-geney Management Ageney (FEMA) National Flood insur-anee Program 96 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 C.F.R.(NFIP) under- > is the exelusive responsibility of the owner or the registered design professional of reeord."; . ., is revised by deleting ., is r-evised by adding a sentenee at the end of the first paragraph to read! "This Seetion 3409 is adopted as a guidanee (88) Chapter 34, Seetion 3410.2 of the !.B.C., is revised to read! "Applienbilify. Struetures meeting the definition of"existing strueture" under Seetion 202 of this eode in whieh there is work involving additions, alterations, or- ehanges of oeeupaney must eonform to t . ., is revised by deleting the words "and inter-national Property Maintenanee Code!'-; (" 86 Chapter 35 (Referenced Standards) of the I.B.C. is revised by changing or adding the referenced standards from the publication date listed to the following edition, and the standards are adopted by reference: N.F.P.A. 10-2007 Portable Fire Extinguishers, N.F.P.A. 13-2007 Installation of Sprinkler Systems, N.F.P.A. 1313-2007 Installation of Sprinkler Systems in One- and Two-Family Dwellings and Manufactured Homes, N.F.P.A. 13R-2007 Installation of Sprinkler Systems in Residential Occupancies Up to and Including Four Stories in Height; N.F.P.A. 14-2007 Standpipe and Hose System, N.F.P.A. 20-2007 Installation of Stationary Pumps for Fire Protection, N.F.P.A. 72-2007 National Fire Alarm Code, N.F.P.A. 750-2006 Standards on Water Mist Fire Protection Systems, *Appendix of the I.B.0 is revised by adding a new Appendix K-NN as follows: APPENDIX K-NN REPAIRS TO BUILDING AND STRUCTURES DAMAGED BY THE OCCURRENCE OF A NATURAL DISASTER K-NN 101 Purpose. The purpose of this appendix is to provide a defined level of repair for buildings or structures damaged by a natural disaster in jurisdictions where the governor has declared a formal condition of disaster emergency under AS 26.23 by proclamation. K-NN 102 General. Required repair levels must be based on the ratio of the estimated value of the repairs required to restore the structural members to their pre-disaster condition to the estimated replacement value of the building or structure. K-NN 103 Structural repairs. When the ratio described in Section K-NN 102 does not exceed 10 percent, as determined by design professionals who are professional architects or professional engineers who meet the requirements of AS 08.48 buildings and other structures, except essential 97 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 facilities included as Category III buildings and structures in Table 1604.5 of this code, must, at a minimum, be restored to their pre-disaster condition. When the ratio described in Section K-NN 102 is greater than 10 percent but less than 50 percent, buildings and structures, except essential facilities included as Category III buildings and structures in Table 1604.5 of this code, must have the damaged structural members, including all critical ties and connections associated with the damaged structural members, all structural members supported by the damaged member, and all structural members supporting the damaged members repaired and strengthened to bring them into compliance with the force levels and connection requirements of this code. These requirements apply to those essential facilities when the ratio described in Section K-NN 102 is less than 30 percent. Exception: For buildings or structures with rigid diaphragms where the above-required repair and strengthening increases the rigidity of the resisting members, the entire lateral force-resisting system of the building or structure must be investigated. When, in the opinion of the building official, an unsafe or adverse condition has been created as a result of the increase in rigidity, the condition must be corrected. When the ratio described in Section K-NN 102 is greater than 50 percent, buildings and other structures, except essential facilities included as Category III buildings and structures in Table 1604.5 of this code, must, at a minimum, have the entire building or structure strengthened to comply with the force level and connection requirements of this code. These requirements apply to essential facilities when the ratio described in Section K-NN 102 is greater that or equal to 30 percent. K-NN 104 Nonstructural repairs to light fixtures and suspended ceilings.Under all ratios calculated under K-NN 102, when light fixtures and the suspension systems of a suspended acoustical ceiling are damaged, the damaged light fixtures and suspension systems must be repaired to fully comply with the requirements of Section 803.944 of this code. Undamaged light fixtures and suspension systems must have the additional support and bracing that is required in Section 803.9410 of this code. { } 85 Appendix of the I.B.C. is revised by adding a new APPENDIX PA-L as follows: APPENDIX LPA OIL AND GAS INDUSTRIAL PROCESSING BUILDINGS PAM01 General. These provisions have been established to provide engineering methods for the design and construction of Hydrocarbon Processing Buildings in this state. L102 Scope. These standards supersede the respective requirements of the codes as adopted in SCC 12.05 . , . . , as the minimum requirements for occupancies when designing and constructing hydrocarbon buildings in this state. L102.2 Small unoccupied structures, shelters, and enclosures, such as a wellhead shelter(any item that is put over the top of the wellhead that totally encloses the wellhead), communications shelters (unoccupied buildings with no hazardous vapors, gases, or products open to the atmosphere within 98 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 the structure and that is utilized solely for the housing of wires and their components), meter building, and shut-down valve enclosures may be classified as a Group U occupancy if the following conditions are met: 1 The building is less than 1,000 square feet; 2 The contents of the building include only meters, valves, or pipe work; 3 The building is not normally occupied more than once during a 12-hour period; and 4 If the building exceeds 250 square feet, the building has at least two exits. PA-L103 Basic allowable module size, height, and separation. The basic allowable module size, height, and separation for Hydrocarbon Processing Buildings must comply with Appendix L103.1 -L103.3 of this Code. PA46103.1 Area and height. The maximum allowable floor area for Hydrocarbon Processing Buildings using a minimum of Type IIB construction is 10,000 square feet and the building may only be one story. The maximum allowable height shall be 65 feet; the reference datum shall be the top of the first floor framing system. Penthouse and roof structures are permitted to extend above the 65 foot height limit to meet special requirements, including aerial coolers, towers, and tower enclosures. Allowable area and building height increases permitted by Sections 504 and 506 of the I.B.C. do not apply. PA-L103.1.1 Service area platforms. An elevated platform or series of platforms of Hydrocarbon Processing Buildings may not be classified as a floor or mezzanine within a building, and are not subject to the requirements of Section 505 of the I.B.C. Access and egress requirements for service area platforms must be served by at least two exits per level, with one being directly to an exterior stair. Platforms must be constructed of grating-type material so that the main floor level below is visible through the platform. Upper service area platforms must be kept to the minimum size that is necessary to accomplish occasional service, operating duties, and safe egress. Virtual wall-to- wall grating on upper levels is considered a story and must be included in floor area calculations. PA-L103.2 Module separation.Hydrocarbon processing buildings must comply with the provisions of Section 501.2 as amended by this code and Sections 704 and 721.6.2.3 of the I.B.C., for all occupancies. Elevated pipe ways extending from a building may not be considered "extensions" of the building. PA-L103.2.1 Building extensions and service area platforms. Building extensions of Hydrocarbon Processing Buildings into the yard, include landings, platforms, stairs, vessels, vessel enclosures, tanks, and exhaust or intake hoods. Clear and unobstructed access for fire fighting is to be no less than 40 feet. Bridging between buildings must be designed to allow access and operation for firefighting. PA46104 Stairs,landings,handrails, and guardrails. Stairs,landings, handrails, and guardrails must meet the minimum requirements of 8 AAC 61, as amended as of March 9, 2001 and as .,.,,,.nded r om time to time; these regulations supersede the respective requirements of the I.B.C. PA-L104.1 Floor level at doors. Floors or landings may be more than one inch lower than the threshold of doorways if an attempt is made to minimize the drop through the use of ramps at interior doorways as described in Section 1008.3.1.6 of the I.B.C. PA46105 Construction specifics. The construction of Hydrocarbon Processing Buildings must comply with Appendix L105.1 -L105.4 of this Code. 99 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 PA-L105.1 Fire walls. When a fire wall is used to qualify under Section 705 of the I.B.C., the wall must comply with that section. If the fire wall does not extend to the ground,the structural supports for the wall must rest upon, and be completely supported by the pilings. PA-L105.2 Tank support fireproofing. Fire proofing requirements for steel tank supports, as described in Section 3404.2.9.1.3 of the I.F.C. (2006 Edition) as adopted by reference, may be waived by the building official when justified, based on the remoteness of the facility and lack of public access, or analytical or empirical results indicating that sufficient heat could be transmitted to the permafrost to cause foundation settlement. PA-L105.3 Foam plastic insulated building panels. For hydrocarbon processing buildings used in the actual processing of hydrocarbons and, not normally used in other mineral extraction or manufacturing activities,foam plastic insulated building panels used on these buildings shall apply a foam plastic insulated building panel with a thermal barrier with an index of 15. Factory Mutual approval Standard 4880 or Underwriters Laboratory(UL) Subject 1040 are acceptable tests for the purposes of approval under Section 2603.4 of the I.B.C. PA-L105.4 Electrical or communication equipment shelters and wellhead shelters. Thermal barrier requirements as described in Section 2603.4 of the I.B.C. are not required for fiberglass or metal sheeting used for construction of electrical or communication equipment shelters and wellhead shelters if the following conditions are met: 1 Foam used must meet the requirements described in Section 2603.3 of the I.B.C.; 2 The area of an individual shelter may not exceed 1,000 square feet; 3 Separation between individual shelters must be a minimum of six feet; 4 Each wellhead shelter shall only enclose one wellhead; 5 The electrical or communication shelter or wellhead shelter must normally be unoccupied. It is understood that operators need to spend approximately 10 minutes per day taking readings in wellhead shelters and that maintenance is infrequently required. The most extensive maintenance is well wireline work. This work may extend to a week per well and occur once every several year per well. Most of this work is accomplished from outside the wellhead shelter. All maintenance is strictly controlled with a permit system; 6 The electrical or communication shelters designed with workstations in the facility do not qualify for this modification. PA-L106 Fire suppression. The provisions in Sections L106.1 - L106.3 establish the standards for fire suppression at Oil and Gas Hydrocarbon Processing Buildings. PA-L106.1 Alternate Automatic Fire-Extinguishing (AAFE) system automatic activation for gas detection. In areas of Hydrocarbon Processing Buildings where(1)both fire and explosion hazards exist, (2) both fire and gas detection systems are installed, (3) the fire and gas detection devices alarm at a continuously staffed control room and trained operators can quickly respond to the fire and gas alarms following specific fire and gas alarm response procedures, and (4) collateral fire damage is likely to be minimal, the following (AAFE) operating activation mode is acceptable: Automatic activation of the (AAFE) system upon gas detection coupled with manual activation of the same (AAFE) system on fire detection. 100 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 PA-L106.2 Manual activation of total flooding fire suppression systems. In areas where (1) the only hazard is fire, not explosion, (2) fire detection devices alarm at continuously staffed control rooms, (3) trained operators can quickly respond to the fire alarms following specific fire alarm response procedures, and (4) collateral fire damage is likely to be minimal, manual activation of the total flooding fire suppression agent is acceptable. These areas also include continuously staffed control rooms. PA-L106.3 Platform width. In buildings protected with fire sprinkler systems, any platform that exceeds four feet in width or length is considered an obstruction for the purposes of the installation of sprinkler systems under Section 903.3.1.1 of the I.B.C.". 12.05.015 Danger-ous Building Code adopted-. (a) The Uniform Code for the Abatement of Dangerous Buildings, 1994 edition, as- r-eeo mended and appr-oved by the inter-national Confer-enee of guilding-offie.iftis of Whittier, California, is hereby adopted by referenee to the same extent as if all .sions of that volume were set forth in full in this eode, exeept to the extent that the i-Inif-a-r-m- Code for the Abatement of Dangerous Buildings shall be in eonfliet with this ehapter- or- any r-elevant or-dinanee later- adopted, in whieh ease the the or-dinanee shall prevail. (b) The City of Seward shall possess three eopies of the eity designated edition of the Uniform Code for the Abatement of Dangerous Buildings, as reeommended and approved by the inter-national Conferenee of Building Offleials of Whittier, Califo i I for publie use, inspeetion and examination, so long as th thereof refflain in €epee: 12.05.020 - Uniform Housing Code adopted (Repealed by Ord. 2002-10, § 1, effective Jan. 1, 2003). 12.05.021 - International Residential Code adopted. A. The International Residential Code, 2012 2021 Edition, approved and published by the International Code Council (Consisting of the Building Officials Code Administrators (BOCA); the International Conference of Building Officials (ICBM), and the Southern Building Code Congress International, Inc. (SBCCI)), is hereby designated and shall be known as the Seward residential code and shall constitute the laws of the city relating to residential building regulation. Although not published in full in this section, all of the provisions of the International Residential Code, 2012 2021 Edition, except as provided in subsection D of this section, shall be and are hereby adopted by reference to the same extent as if set forth in full in this section except to the extent that the International Residential Code shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall prevail. B. The City of Seward shall possess three copies of the city designated edition of the International Residential Code for public use, inspection and examination, so long as the provisions thereof remain in force. 101 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 C. The International Residential Code (IRC) is adopted to regulate all residential occupancies and buildings in the City of Seward. It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, improve, convert, demolish, or equip any building or structure in the city, or cause or permit the same to be done, contrary to or in violation of any of the provisions of the International Residential Code adopted and incorporated as the Seward residential building code by this section. See Section R105.2 for Work Exempt From Permit. D. The International Residential Code(IRC), 2012 2021 Edition, adopted in subsection A of this section, is hereby amended by adopting the following revisions and exceptions to the I.R.C.: The MC is revised by deleting all references to the "International Fuel Gas Code", with the exception of Chapters 6 and 7 and all references to the "International Plumbing Code" and replacing them with "tlni orm Plumbing Code as adopted by SCC 12.05.025 the Department of Labor-". (1) Chapter 1, Section R101.1, of the I.R.C. is revised by inserting "City of Seward" as "name of jurisdiction." (2) Chapter 1, Section R102.7, of the I.R.C. is revised by deleting the words "the International Property Maintenance Code or". (3) Chapter 1, Section R103, of the MC is revised by replacing the existing title "DEPARTMENT OF BUILDING SAFETY" with 'BUILDING DEPARTMENT". (4) Chapter 1, Section R103.1 CREATION OF ENFORCEMENT AGENCY, is revised by deleting the entire paragraph and title and replacing it with "GENERAL. The official in charge of enforcing the provisions of this code will be known as the Building Official. The Building Official shall have the authority to render interpretations of this code and to adopt policies and procedures in order to clarify the application of its provisions. Such interpretations, policies and procedures shall be in compliance with the intent and purpose of this code. Such policies and procedures shall not have the effect of waiving requirements specifically provided for in this code." (5) Chapter 1, Section R105.3.1.1, (Determination of substantially improved or substantially dama,-ed existin- buildin- in flood hazard areas) 1AWROVED OR SUBSTANTIALLY DAMAGED EXIST-ING BUILDINGS AND is revised by deleting "Table R301.2M" and inserting the words "City of Seward Ordinance Section 9.15.140." (6) Chapter 1, Section R106.1.341 (Information for construction in flood hazard areas) _ , is revised by deleting "Table R301.2M" and inserting the words "City of Seward Ordinance 15.25". (7) Chapter 1, Section R108.2, (Schedule of permit fees) SC-14EDULE OF PERMIT FEES, is amended by deleting everything-aff after "in accordance with " and inserting the words "Table 1-A, Building Permit Fees" and inserting Table 1-A in the text. TABLE 1-A BUILDING PERMIT FEES 102 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 Total Valuation Fee $1.00 to $500.00 $23.50 $501.00 to $2,000.00 $23.50 for the first$500.00 plus $3.05 for each additional$100.00, or fraction thereof,to and including $2,000.00. $2,001.00 to $25,000.00 $69.25 for first$2,000.00 plus $14.00 for each additional$1,000.00, or fraction thereof,to and including $25,000.00. $25,001.00 to $50,000.00 $391.25 forthe first$25,000.00 plus $10.10 for each additional $1,000.00, or fraction thereof,up to and including $50,000.00. $50,001.00 to $100,000.00 $643.75 for the first$50,000.00 plus $7.00 for each additional $1,000.00, or fraction thereof,up to and including $100,000.00. $100,001.00 to $500,000.00 $993.75 forthe first$100,000.00 plus $5.60 for each additional $1,000.00, or fraction thereof,up to and including $500,000.00. $500,001.00 to $1,000,000.00 $3,233.75 for the first$500,000.00 plus $4.75 for each additional $1,000.00, or fraction thereof,up to and including $1,000,000.00. $1,000,001.00 and up $5,608.75 for the first$1,000,000.00 plus $3.15 for each$1,000.00, or fraction thereof. Other Inspections and Fees 1. Inspections outside of normal business hours, per hour $47.00 2. Inspections for which no fee is specifically indicated, per hour $47.00 3. Additional plan review required by changes, additions or revisions to plans (minimum charge—one-half hour), per hour $47.00 4. For use of outside consultants for plan checking and inspections, or both—Actual costs (8) Chapter 1, Section R111, (Service utilities) , is deleted in its entirety. (9) Chapter 1, Section R112.1 General GFNTA44b, is amended by adding the words "consisting of the City Council of the City of Seward." after the words in the first sentence "hereby created a board of appeals." The period after the word "appeals" is deleted and the third sentence starting with the words "the board of appeals shall...." is deleted in its entirety. (10) Chapter 1, Section R112.3, (Qualifications),is amended by deleting the entire paragraph and title. (11) Chapter 3, Table R301.2(t), (Climatic and geographic design criteria) AND GEOGRAP141C DESIGN CRITERIA, TABLE R301.2-M 103 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 CLIMATIC AND GEOGRAPHIC DESIGN CRITERIA Add the following information in the table: Roof Snow Load 80 psf Uniform Roof Snow Load 80 psf Wind Speed 100 mph Seismic Design Category D 2 Weathering Severe Frost Line Depth 42 inches Termite None - Slight Winter Design Temp. -20 Degrees F Ice Barrier Underlayment required Yes Flood Hazards Yes, see Flood Hazards Maps Air Freeze Index 1673 Mean Annual Temp. 39 Degrees F Decay Slight- Moderate (12) Chapter 3, Section R301.1.4 (Intermodal shipping containers), is deleted in its entirety, { } 13 Chapter 3, Section R302.5.1 (Opening protection)OPENING PROTECT- is amended by adding a sentence at the end of the section "All door openings between garage and residence must be equipped with smoke gaskets." { -3)- 14 Chapter 3, Section R302.6 (Dwelling-garage fire separation) fire separa is amended by changing the first sentence to read "The garage shall be separated from the residence by a minimum of one hour occupancy separation" and delete the last sentence and Tlable R302.6. {�4} 15 Chapter 3, Section R302.7 (Under-stair protection) is amended by replacing 1/2-inch 12.7mm with "%-inch" number(15) Chapter- 3, Seetion R310.1 EA4ERGENCY ESCAPE AND RESCUE REQUIRED is amended by numb tion in the 1RC Code 1. and adding exeeption 4-2. Where windows are provided as a means of eseape or reseue in a basemen-t-, they shall have a finished sill height of not more than 48 inehes above the finished floor. 16 t . hott,.m of the elear- opeHiw of R .hau th am 48" (1 2 1 n,..,..) .f �- {4} 17 Chapter 3, Section R313.1 (Townhouse automatic fire sprinkler s stem is amended 104 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 by at the end of the sentence adding; "that exceeds a total of 3600 square feet per unit or as required by the International Fire Code as adopted". (18) Chapter 3, Section R313.2 (One- and two-family dwellin,-s automatic sprinkler systems) is amended by deletin,-the section, includin-R313.2.1 and exception. { 47* 19 Chapter 3, R315.2.1 (New construction) CARBON A40NOXIDE ALARMS is amended by deletin,- the current text and replacin- it with, new s -h—s^^+0 LL.RM5.2i.i "In new construction, carbon monoxide alarms shall receive their primary power from the building wiring where such wiring is served from a commercial source and shall be equipped with a battery back-up. Wiring shall be permanent and without disconnecting switch other than those required for overcurrent protection. In existing construction, carbon monoxide detectors shall be permitted to be battery powered or cord-and-plug type with battery backup." {4)- 20 Chapter 3, Section R317.3.1 (Fasteners for preservation-treated wood is amended by deleting the exceptions. 04)- 21 Chapter 3, section R322.1 General GFNFA1AL is amended by replacing the words "in Table 301.2(4-)" with the words "by the City of Seward Flood Zone Maps". (240)- 22 Chapter 3 Section 3 22.1.7(Protection of water supply and sanitary sewage S stems))PROTECTION OF WATER D SUPPLY AND SANITARY SEWAGE SAS, in the last sentence, delete every thin,-PA after "plumbing provisions of this code" and insert a period after "code". (21) Chapter- 3, seetion . . 6 PROTECTION OF WATER SUPPLY AND SANITARY SEWAGE SYSTEMS, in the last sentenee, delete all after- "plumbiag . . E)f this eode" and insert a period after- "eode". { � 23 Chapter 4, Section R401.1 (Application'APPLICATION is amended by deleting "Table R301.2M" and replacing it with "City of Seward Flood Zone Maps". (23)- 24 Chapter 4, Section R401.2 REQUIREMENTS. Add a new sentence to the end of the paragraph that states, "Wood foundations shall have a minimum 16-inch x 10-inch reinforced concrete footing." (24)- 25 Chapter 4, Section R402.14 (Wood foundations) RESTRAINT FOR WOOD FOUND A TION.is amended by addin,-Add a new subsection, R402.1.3 (Restraint for wood foundation) that states: `Basement. A 4-inch thick concrete slab poured against the studs. If a wooden screed is used, it shall be pressure treated Douglas fir or hem fir. Option 1: A minimum 5-inch wide by 4-inch deep concrete curb poured against the inside face of the studs. The kicker shall be reinforced with a continuous horizontal No. 3 reinforcing bar. If the kicker is not poured with the continuous concrete footing, it may be poured later provided vertical #3 reinforcing bars x 10 inches long shall be cast into the footing at 2 feet on center. They shall extend 2 inches above the top of the footing. The continuous #3 bar shall be secured to the vertical #3 bars. 105 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 Option 2: Installation of preservative treated 4" x 4"s with a minimum '/2" x 12" galvanized anchor bolts at 24" O.C. installed in footing against the inside face of studs along the entire perimeter. Exception: The above need not apply if a suitable alternate design is prepared by an engineer registered in the State of Alaska and is approved by the Building Official." (25) Chapter 4, Seetion R403.1.3 SEISMIC REINFORCING,by deleting the . (26) Chapter 4, Section R403.1.6.1 (Foundation anchorage in seismic design categories C, DO, DI and D2)z OUND A TION ANCHORAGE A G 1N SEISMIC DES!! 1�T is amended by changing the anchor bolt spacing in item #2 and#3 from "not more than 6 feet"to read "not more than 4 feet". (27) Chapter 4, Section 403.2 (Footings for wood foundations)F40044NG8 inn �x�nnn Ti 11UND A TIONS Strike current paragraph and replace with the following sentence: "Footings for wood foundations shall be in accordance with the requirements of _Ssection 401.2 . (28) Chapter 4,Section R404 is amended by removin,-all references to Masonry or CMU foundation walls. Masonry orCMU walls shall not be allowed for use in residential foundations. (29) Chapter 4, Section R404.1 (Concrete and masonry foundation wal/sWonerete a masonry foundation w is deleted in its entirety. (30) Chapter 4, Section R404.1.1, (Masonry foundation walls)MASONRY FOUNDATION MIA! is deleted in its entirety. (31) Chapter 4, Section R404.1.2, (Concrete foundation walls) is deleted in its entirety. (32) Chapter 4, Section R404.1.3, (Design required)DESIGN REQUIRED is deleted in its entirety. (3-2)(33) Chapter 4, Section R404.1.4 (Seismic design categories DI and D2)SFASAUE DESIGN CATEGORIES D! AND D2, is deleted in its entirety. (33)(34) Chapter 4, Table R404.1.1(1), (Plain concrete and plain masonry foundation walls)PLAIN CONCRETE AND PLAIN MASON FOUNDATION WALLS, is deleted in its entirety. (34)(35) Chapter 4, Table R404.1.1(2), (Reinforced concrete and masonry foundation walls , is deleted in its entirety. (3-5)(36) Chapter 4, Table R404.1.1(3), (Reinforced concrete and masonry foundation walls , is deleted in its entirety. (30(37) Chapter 4, Table R404.1.1(4), (Reinforced concrete and masonry foundation walls , is deleted in its entirety. (3-7)(38) Chapter 4, Section R404.3, (Wood sill plates) , is amended by deleting the fie-paragraph and substitutin-ite with the following: 106 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 Wood sill plates shall be minimum 2-inch by 6-inch nominal lumber and shall be bolted to the foundation or foundation wall with not less than ten (10) inch by five-eights (%) inch nominal diameter galvanized steel bolts embedded at least seven(7)inches into the concrete or in fully grouted cells of reinforced masonry and spaced not more than four (4)feet zero (0)inches apart. There shall be a minimum of two bolts per piece with one bolt located within 12 inches of each end of each piece. Washers shall be galvanized and in accordance with R602.11.1. Wood sill plates must be preservative-treated material as specified in Section R317.1. (38)(39) A new section, Chapter 4, Section R404.3.1 is created as, (Reinforced concrete) REINFORCED CONCRETE. 1. The minimum reinforcement for reinforced concrete shall be as follows: 12"Walls 10"Walls #4 @ 12" o.c. each face horizontal #4 @ 8" o.c. horizontal #4 @ 18" o.c. each face vertical #4 @ 12" o.c. vertical 8"Walls 6"Walls #4 @ 10" o.c. horizontal #4 @ 12" o.c. horizontal #4 @ 16" o.c. vertical #4 @ 18" o.c. vertical 2. Reinforced concrete walls shall be anchored to all floors and roofs in accordance with Chapter 16 and 19 of the International Building Code, as adopted in SCC 12.05.0112000 edition. 3. All intersecting reinforced concrete walls shall be tied together. 4. All interior and exterior concrete walls shall be reinforced. 5. All structural members framing into or supported on concrete walls or columns shall be anchored. ALTERNATE REINFORCEMENT FOR CONCRETE WALLS 6" Walls #4 @ 12" hor. #3 @ 8" hor. #5 @ 13" hor. #4 @ 18" vert. #3 @ 12" vert. #5 @ 18" vert. 8" Walls #4 @ 10" hor. #3 @ 51/2" hor. #5 @ 15" hor. #4 @ 16" vert. #3 @ 9" E.F. vert. #5 @ 18" vert. 10" Walls #4 @ 8" hor. #3 @ 9" E.F. hor. #5 @ 12" hor. #4 @ 12" vert. #3 @ 15" E.F. vert. #5 @ 18" vert. 12" Walls #4 @ 12" E.F. hor. #3 @ 71/2" E.F. hor. #5 @ 18" E.F. hor. #4 @ 18" E.F. vert. #3 @ 12" E.F. vert. #5 @ 18" E.F. vert. (E.F. -Each Face-double row of bars) (39)(40) Chapter 4, Figure 404-31, TYPICAL FOUNDATION AND FOOTING DEPTH, is added as shown: 107 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 TYPIC4 !`f:R'OR 'NTFRIOR PONY WALL. INTFR10R PONY WALL _ Ov 'DOTING ON CONCRETE FLOOR a r ..e,mgneued ee„qn,ee",,.e 0'. �2)m.6 rcnn {40}(41) Chapter 4, Figure 404-31, TYPICAL PONY WALL FOR SPLIT LEVEL, is added as shown: Studs, crerlcr sheathing. shear wall edge nail per engineer, e;e nail per engineer minimum 8d ® 6" oc, 3-16d per 16' 6" poured or emu foundation wall, 2X treated hem-fir sill with sill sealer - th'icker sill 1n" wall required when wall supports required for some neiling patterns (cedar can be 3 floors or engineered design required. used when shear wall edge nailing and anchor � hall spacing are designed for cedar ]. 10. fi" mlr, R-1 & commerclai. 5/fix 10 goly. arctic, bolts 7" mbed. ® 48" oc 2x2x3/16 pinte woshers- 6 V Single family & duplex: 5/8x14 gale. anchor bolts w/ 7" embed.® 48" I oc. S o_ 5 re dar continuous CMU: vertical nc. •char ® 32" cc, horizontal 5 rebar 48" oc. 40 bar d:::,-:eter splices 42 Maximum 5' differential fill Delween inside versus verf-1 n rebar ® 15" utside ar engineered restraint required. 0 t 5" o .... .. ." lap splices. mop —ed al I o : :o aho ;rode ,0. -3 1/2" slob minimum 5 rebar continuous, cover and 12 spfce. Hook os required- {4�}(42) Chapter 4, F-figure 404-37, TYPICAL BASEMENT FOUNDATION WALL, is added as shown: 108 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 DO NOT BACKFI _ AHOVL 4' UNTIL BLOCKING, FRAM.:NG ANCHORS & PLYWOOD NAILS ARE INSTALLED. it Pn eng''neer �•.. 16 pe Ifi aneo'w sage it he rim to ! tol�sl TnlacNh�glnmg it conneeliacn pe npireer�` yr y lJ Ilasb r tl loon +�1 loelic icFu bm—e 2 be ale' n 115re:.......�-�-:'� 1 PeaPa 1tl6p m x Llg�lgela ell r eL le lavndel en w , 6 Above I minim _ �%6a lreaQeGeM1 '•ael b(e edar mil! a, eg g I I g.ed)e eater IDor anl[ror� ,i /6'qo v_ bo is ow�29 ge Ft eo le 1/bl I—L]D /to ct Od t gr ass w/ 12 ae aide ar o last I ... 1 _ c u:�prr 5 a o•g. F t5e fen 2 pay bat meP v P 5 O C.8 cec 1 oppreved ; lel 5 a 15 0 vole p aolulbo1lam I loot ng� _y pe Ilonoapf 6 2<"crp eaa L 5 ep, e cba+e grctl I/ 1. cA ser groin w 10'p Ill 1 d t on on w o- v n oe aepparta kea tlrpininq qrg ulpr pock lily\ I 3 leers or a o 48 requlr d _ ata ed,d b Y 7.5 ena 325 bane '1 qulrea� k J^m b br sab 4o y-drg;n;, £c ae trcatrotl sea for inl.eo s Pekgfet,d Alec ndicpled � ' 0 oa o o a U." o (43) Chapter 4, Section R406.3_247, (Below -rade moisture barrier) MOISTURE BAP.MFR, delete the existing paragraph and substitute the following: "Foundation walls located below grade shall be damp proofed with either 2-ply of 15 lb. hot-mopped felt, or 1-ply of 30 lb hot-mopped felt, Bituthane or other approved materials." (43) Chapter- 4, Seetion R406.3,fDamp proofing for wood foundationsi, is deleted in its may. (44) A new section, Chapter 6, Section R601.3 (Moisture control) COOL, is added, "In all framed walls, floors and roof/ceiling comprising elements of the building thermal envelope, a vapor retarder shall be installed on the warm-in-winter side of the insulation." (45) Chapter 6, Section R602.3.2, (Top plate) , is amended by deleting the exceptions. (46) Chapter 7, Section R702.7 (Vapor retarders), is amended by deletin- the words "interior side of frame walls" and replacin- it with "warm in the winter side of the insulation," and by addin,- the followin- at the end of the first paragraph, "In all framed walls, floors and roofleeilin- comprisin- elements of the buildin'- thermal envelope, a vapor retarder shall be installed on the warm-in-winter side of the insulation " (46) hapter 7, Seetion R702.7 is amended to delete the words "interior- side of frame walls" and repineing it with "warm in the winter side of the insulati 109 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (47) Chapter 8, Section R802.10.3 Bracin #G, is amended by adding the following details and verbiage to the section: OPTION 1: FULL HEIGHT BLOCK IN EVERY $PAGE WITH 3 OR MORE 2" DIAMETER OR LARGER HOLES AT TOP OF BLOCK, OPTION 2: ALTERNATE FULL H:GHT BLOCK WITH 3 OR MORE 2" DIA.'.1FTER HOLES AT TOP OF BLOCK AND r,)4PTIAL HEIGHT ;:7K EVERY OTHER 'SPACE WITH AN :=11' ;AP BETWEEN 1"-2" FROM ROOF SHFh.—H 1Ji TO TOP OF F =:TIAL HEIGHT BLOCK — MIN. 2K 1 i'a F1 '7c:It. FULL HEIGHT SOLID BLOCK. A BEVELED BLOCK ROOF DIAPHRAGM BOUNDARY NA I`:-C Ft I I. HEIGHT S REQUIRED WHERE THE ROOF PITCH EXCEEDS 4;12 BLDGK PER THE DESIGNER_ MIS+MUM 3c y 6" D.C. AND THE ROOF SHEATHING; IS REQUIRED TO BE BLOCKED. FOR OPTION 1 AND 3d @ 3' OC FO CP I•.N } y�RESHEATHING WITH SPAN RATING -------GREATER THAN OR EQUAL TO FRAMING SPACING. 400 LB CAPACITY HURRICANE CLIP EACH TRUSS. STUD PLATE CONNECTORS PER HANDOUT RD. FOR INTERIOR PLACEMENT. DOUBLED TOP PLATES, LAP SPLICE NAIL SHEATHING TO BLOCKING PER PER DESIGNER. MINIMUM 8-16d WITH SHEAR WALL SCHEDULE. MINIMUM 4' END JOINT OFFSETS. 8d @ 6" OC. ,,_BRACED WALL PANELS / SHEAR WALLS FULLY BLOCKED. OPTION 3. THIS CONFIGURATION MAY BE USED IN LIEU OF FULL HEIGHT BLOCKS ABOVE EXTERIOR WALLS FOR TRUSSES WITH HEELS OF 11 1/4". SOLID 2X BLOCK MIN, 2X4 6" MAX — 2" MIN BD 0 4" OC. MAX. TIGHTER NAILING 2" MAX. PATTERNS REQUIRE ENGINEERED DESIGN. TRUSS UPLIFT CONNECTION PER DESIGNER OR HANDOUT RD.12 ARTIAL HEIGHT 2X BLOCK MIN. 2X10 FDR A 11 1/4" HEEL. NAIL SHEATHING TO CONNECT TOP PLATES BLOCKING PER SHEAR TO BLOCK PER SHEAR WALL WALL SCHEDULE. MIN. SCHEDULE / DESIGNER OC, SHEAR WALL Other configurations may be deemed acceptable when supported by calculations. (48) Chapter 8,R807.1, (Attic access,0-T-TICACCESS,is amended by adding the following to the end of the first paragraph: "Attic access shall not be located in a room containing bathing facilities. (49) Chapter 9, R903.4, (Roof draini e)ROOF DRAINAGE, is amended by adding the following sentence after the first sentence: 110 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 Roofs and gutter downspouts shall not create a water flow that damages neighboring properties. (50) Chapter 9, Section R905.1 (Roof covering application)ROOF COVERING APPLICATION,"'T ION is amended by adding a new sentence at the end of the paragraph: "All roof coverings shall be fastened to%" minimum solidly sheathed decks". (51) Chapter 9, Section R905.2.2 SLOPE, is amended by deleting the entire section and replacing it with the following: "Asphalt shingles shall only be used on roof slopes of three units vertical in 12 units horizontal or greater. Underlayment shall be in accordance with Section R905.2.7 and ice protection shall be in accordance with R905.2.7.1." (52) Chapter 9, Section 905.1.1 (Underlayment), 3.3.1, TOW SLOPE ROOFS, Table R905.1.1(2) UNDERLAYMENTAPPLICATIONis amended by deleting the words, in each place it is found, "—L*nderlayment shall be a minimum of two layers applied in the followin-manner:apply 19-inch strip ofunderlayment f elt parallel to and startin,- at the eave. Startin- at the eave, apply 36-inch wide sheets of underlayment, overlapping successive sheets 19 inches. Distortions in the underlayment shall not interfere with the ability of the shin-les to seal. End laps shall be 4 inches and shall be offset by 6 feed" !" and replace with: "......underlayment shall be ice and water shield adhesive type of membrane covering the entire roof." Delete items 1 and 2. (53) Chapter 9, Section R905. 1.1 (Underlayment), , Table R905.1.1(2) UNDERLAYMENT APPLICATION is amended by deleting the paragraphs under the column "Areas where wind desi,-n is not required in accordance with Fikure R301.2.1" and in the "Asphalt Shin-les," "Clay and concrete tile" and Photovoltaic Shin-les"rows, the Table cell text will be deleted and replaced with the followin,-: "For roof slopes from 2 units vertical in 12 units horizontal (2:12), underlayment shall be two lavers applied in the followin- manner: apply a 19-inch strip of underlayment felt parallel to and startin,- at the eaves. Startin- at the eave, apply 36-inch-wide sheets of underlayment, overlapping successive sheets 19 inches. Distortions in the underlayment shall not interfere with the ability of the shin-les to seal. End laps shall be 4 inches and shall be offset by 6 feet. For cool slopes of*4 units vertical in 12 units horizontal (4:12) or -reater, underlayment shall be one laver applied in the followin- manner: underlayment shall be applied shin-le fashion, lapped 4 inches over ice protection. Lap subsequent lavers 2 inches horizontally and 4 inches vertivally to shed water continuin,-to the rid,-e, fastened sufficiently in place. Ice protection shall be in accordance with R905.2.7" "......parallel to an' starting from the eaves and lapped 2 inehes (51mm), fasten-ed -suff-fie-0ently in " and repineing with.! .. in pinee. lee proteetion shall be in neeor-danee with....lapped 4 inehes over iee proteetion.Lap subsequent layers 2 inehes horizontalty 111 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (54) Chapter 9, Section R905.4, (Metal roof shi 71es)METAL ROOF SHINGLES, is amended by deleting subsections R905.4.1 through R905.4.3 and replacing 905.4.1 with, "Refer to R905.1, R905.2.2, and R905.2.7"and R905.2.74 (55) Chapter 9, Section R905.5, (Mineral-surfaced roll rooting)ATUNF1241 SURFACED ROLL ROOFING, is amended by deleting subsections R905.54.1 through R905.5.3: Rio and replacin- 905.5.1 with "Refer to R905.1; R905.2.2; and R905.2.7."mW nnnc � =c�-vTc.-rz. (56) Chapter 9, Section R905.6, (Slate shing )SLATE AND SLATE TYPE SHINGLES, is amended by deleting subsections R905.6.1 through R905.6.3.Refer to and replacing 905.6.1 with "Refer to R905.1, R 905.2.2 and R905.2.7._"and n905.2.74 (57) Chapter 9, Section R905.7, (Wood shingles)WOOD SHINGLES, is amended by deleting subsections R905.7.1 through R905.7 78.3. Refer *o and replacin- it with "Re er to R905.1; R905.2.2; and R905.2.7._" ^-�a -R905.21.7.' (58) Chapter 9, Section R905.8, (Wood shakes) , is amended by deleting subsections R905.8.1 through R905.8. 7.3. Refer- to and replacing it with "Refer to R905.1; R905.2.2; and R9052.7._"^ra_on 52.7.4 (59) Chapter 9, Section R905.9.1 (Slope)SLOPE, is amended by deleting the words: "...except for coal-tar built-up roofs,which shall have a design slope of a minimum one- eighth unit vertical in 12 units horizontal (I-percentslop")." (60) Chapter 9, Section R905.10, (Metal roof panels) , is amended by deleting subsections R905.10.1 through R905.10.2.. Refer to and replacin-it with "Refer to R905.1; R905.2.2; and R905.2.7._"^„a _onc._.,., (61) Chapter 9, Section R905.10.2 (Slope SLOPE is amended by adding the following as the fiiurth to the end o paragraph: "4. Install underlayment under all metal roof panels. Underlayment shall be one layer of Type 15 felt. Underlayment shall be installed, starting with 4-inch lap-over ice protection. Each subsequent layer shall be lapped 2 inches horizontally, and 4-inch vertically to shed water continuing to the ridge. Fasten sufficiently to hold in place. Ice protection shall be in accordance with R905.2.7.1". (62) Chapter 11, (fRel Enemy efficiency)ENERGY EFFICIENCY,is amended by deleting the chapter in its entirety and replace it with the following: "Chapter 11, Energy Efficiency. All one- and two-family dwellings and townhouses shall comply with the following insulation standards." Minimum Insulation R-Value [(hrft2degF)Btu] Minimum Ceilings Walls Basement Crawlspace Exposed Glazing U- Walls Walls Floors Above Factor Grade (Cantilevered Floors Minimum 0.35 R-38 R-19 R-19 R-19 R-30 R-Value 112 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (63) Chapter 13, Section M1301.1 Sco e 8490V-U is amended by in the last sentenee deleting the last sentence that bezins with "Installations of mechanical appliances. . Y fland the international Fuel Gas Code." (64) Chapter 13, Section M1307.2 (Anchorage of appliances) is amended at the end of the seeti „ by adding the-a sentence in between the first and second sentences, "Boilers shall be secured to resist earthquake motion by anchoring boiler and stand to wall or floor." 12.05.025 - Uniform Plumbing Code adopted. (a) The Uniform Plumbing Code, 2018 editions Sections 101.0-103.2, 103.3.1 -103.4, 105.0 - 105.2.2 and 105.3-106.6 of chapter 1, chapters 2 - 10, chapter 11 excludin- the requirements of section 1101.5, chapters 12 - 17, and appendices A - L'nn, editio adopted by the inter-national Assoeintion of Plumbing and Alee-hanio;—;1I Offleials in , is hereby designated and shall be known as the Seward Plumbing Code and shall constitute the laws of the city relating to plumbing regulation. Although not published in full in this section, all of the provisions of the Uniform Plumbing Code shall be and are hereby adopted by reference to the same extent as if set forth in full herein, except to the extent that the Uniform Plumbing Code shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall prevail. (b) The City of Seward shall possess three copies of the city designated edition of the Uniform Plumbing Code, for public use, inspection and examination. (c) It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, improve, convert, demolish or equip any building or structure in the city, or cause or permit the same to be done, contrary to or in violation of any of the provisions of the Uniform Plumbing Code adopted and incorporated as the Seward plumbing code by this section. 12.05.030 - Uniform Mechanical Code adopted (Repealed by Ord. 2002-011, § 1, effective Jan. 1, 2003). 12.05.031 - International Mechanical Code—Adopted. (a) The 2012 2021 edition of the International Mechanical Code (IM0, including appendix chapters listed in subsection(b)below,published by the International Code Council is hereby designated and shall be known as the Seward Mechanical Code and shall constitute the laws of the city relating to mechanical systems. Although not published in full in this section, all of the provisions of the International Mechanical Code and the appendices cited shall be and are hereby adopted by reference to the same extent as if set forth in full herein, except to the extent that the International Mechanical Code is amended by or in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall apply. (b) The following r- i i made to the inter-national Aleehanien! Code 2012 Edition.- hereinafter- sometimes referred to as the 1A4C- in its appheation as the Seward Meehanien! Code. 113 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 (1) The lA4C- Chapters 1 15 and Appendix A (2012 edition) are adopted by r-efer-enee to regulate the design, installation, maintenanee, alteration and inspeetion of meehanieni systems that are permanently installed and utilized to provide eontrot of environmental eonditions and related proeesses within buildings, with the following r- (2) The lA4C is revised by deleting all the referenees to the rr !CC Eleetrien! Code or NFPA rr and r-eplaeing them with rr as amended as of Oetober- 16, 2012, and as amended from time to ti (3) The lA4C is revised by deleting all the referenees TO THE iNTERNATIONAL FUEL GAS CODE, with the exeeption of ehapters 6 and 7 (of the rr Internatioln Fuel Gas tr) and all r-efer-enees to the trInter-national Plumbing Code" and repineing them with tr Plumbing Code as adopted by 8 AAC , as amended as of Febr-tiar-y 23, 2011, and as amended &om time to tr (4) Chapter 1 of the lA4C is revised by deleting Seetions > > and referenees to the inter-national Existing Building Code tr rr and the inter-national Energy Conservation Code tr rr (5) Chapter- > 109 > (6) Chapter- 3, Subseetion 301.6 (Fuel gas applianees and equipment) of the Mc-, is revised by deleting the words trfuel gas distribution piping and equipment" and trfuel gas fired applianee venting " (7) Chapter 3, Seetion 303.3 (Prohibited Loeations) of the 1MC, is revised by deleting the words trof the inter-national Energy Consenvation Code" , is revised to read! tr eombustible eonstruetion as speeified in the listing and equipment and applianees must be installed to maintain the required elear-anees to s. of the lA4C. Certain unlisted, heat produein t shall be allowed if the tr Methods", of this pull, > shuttem, limits, ,guards, may not be used to provide the required elear-ane > tr rrT. ble 304.8 STANDARD iNST A T T A TION CLEARANCES, IN TNC14Ei S Ti O CERTAIN UNLISTED HEAT PRODUCING tr AppliftneesAbove From From From Top 0 Top and 7F*on" Baek(6) Sides (6) side" 114 CITY OF SEWARD,ALASKA ORDINANCE 2023-020 Casing or- War-m- Applifinee R;w Bennet er- Residential T-f-pe Fur- .aeees Floor-for- sew 1&- p 4-� 4$ a I$ Mounting on Autema 36 43 4-2 l2 eembustible floors Oil or- Comb. 4as-04 Oil er- 36 44 4-2 42 Cir-etilat sew Radiant o other-type Oil or- 36 -36 36 36 sew Fir-eplae-e stove sew 4&+* 34 typeg Unit 14ea4er-s Floor- All Ftlels 4-9 49 4-8 4-9 Other- Low Hem All Fuels 4-9 4$ 48 49 48 4$ Floor- Mounted or- ineiner-.ter-s All sizes -.g -96 1 36 156 115 � tr z z s x Ids a x x a. s x x x of the sentenee! "and the " "using(11) Chapter 3, Seetion 312.1 (Load Caleulations) of the PIC, is revised by deleting the words Energy Cou-se-F-v-atio-m- .' "Ventilation(12) hapter 4, -e-e-tio-in 40-33.3 (Ventilation rate) of the PIC, the first sentenee is revised to read! )utdoor- air-flow rate required in Table 403.3 " Rates" based in the oeeupaney of the spnee and the oeeupant load or- othe-r- > > .' "Energy(13) Chapter 5, Seei-ion 514.1 (General) of the MC, is revised by deleting the seeond sentenee and replaeifl-,g it with "Combustion(14) Chapter- 8, Seetion 804.1 (Dir-eet vent termination) of the lA4C-, is r-evised by adding foot high or- pr-ovide snowdrift " (15) Chapter 9, Seetion 907.1 (General) of the lA4C, is revised by adding a seeond sentenee to read "Commereial standard UL 2790 may be neeepted as an alternative an alter-native to U (16) Chapter 9 (Speeifie Applianees, Firepinees and Solid Fuel Burning Equipment) o 929.1 General.Unvented room heaters shall be tested in neeor-danee with Amerienn National Standards institute (ANSI)Z21.11.2 (2011 Edition), adopted by referen- - -and may be installed in aeeor-danee with the eonditions of the listing and th 929.2 Prohibited use. One or- more tinvented room heaters may not be used as t sole souree of eomfort heating in a dwelling unit-. 929.3 input rating. Univented room heaters may not have an input rating in exeess 929.4 Prohibited loeations. Unvented room heaters may not be installed within Group > E, eombustion air-from, any of the following r-ooms or- spaees 2 r2Bedrooms (3) Toilet rooms; Pis. A . gle wall mounted unvented room heater equipped with and oxygen depletion safety shutoff system and installed in a bathroom provided the input rating does not exeeed 6,000 Btu 118 b. A single wall mounted unvented room heater-equipped with and oxygen depletion safety shutoff system and installed in a bedroom if the input rating does not exeeed 10,000 Btu per hou-r- 929.5 Room or-spnee volume. The aggregate input rating of-a-1-1 ifflnvefl-ted applian or spnee. Where the room or spnee in whieh the equipment is installed is direetly eonneeted to another room or spnee by a > > tested,eompar-able size that eannot be elosed, the volume of sueh adjaeent room or sp may be permitted to be ineluded in the ealeulati- - 929.6 Oxygen depletion safety system. Univented room heaters shall be equipped with an oxygen depletion sensitive safety shutoff system. The system shall shut off the gas supply to the main and pilot burners when the oxygen in the surrounding atmosphere is depleted to the pereent eoneentration speeified by the manufaetur-eir-, but not lower than 18 pereent. The system may not ineorporate field adjustm means eapable of ehanging the set point at whieh the system aets to shut off the gas supply to the room heater. 929.7 Unvented log heaters. An tinvented log heater- may not be installed in a faetory built firepinee unless the firepinee system has been speeifienily liste > ram'lcci for use inncCor-dance'with Underwriters Laboratories (�r2 > is revised, with the exeeptions rr boilers, Seope. This ehapter- go,,,er-ns the installation, alteration, and- repair- of water heaters, and pressure vessels not subjeet to the provisio of the department of labor- and wor-lifor-ee development under- AS 18.60.180 1 4vn..2 " -6vr.�0G. (18) Chapter 10, Seetion 1001 (General) of the PIC is revised by adding a new seetion 1001.2 to read.! rr Boilers,water heaters and pressure vessels installed in fteeor-dan with this ehapter- shall be br-aeed, anehor-ed or- str-apped to resist Wing o-r- rr (20) Chapter 14 (Solar- Systems) of the lA4C, is revised by deleting the body o rr General. Solar energy equipment and applianees must be installed in eomplianee with the Solar Energy Code as adopted by 8 AAC- 63.010, > 2011 an amenaed from ne-tee refereneed standards from the publiention date listed to the following edition, a these standards are adopted by referenee: NFPA 96 2011 Ventilation Control and Fire Proteetion of Commer-eial Cooking Operations. (b) The International Mechanical Code 2021 Edition (IMC), Chapters I - 15 and Appendix A, are adopted by reference to re,-elate all occupancies and buildin,-s, except that the IMC is revised by deletin,- all the references to "ICC Electrical Code" or "NFPA 70" and replacin,- 119 those references with "Electrical Code as adopted by SCC 12.05.035 OF,44RCH 6 2046 4 LD a amended f o +;, e to +inure" and the IMC is revised by deletin'- all the references to "International Fuel Gas Code", with the exception of Chapter 3 Section 304 and Chapters 6 and 7, deletin- all the references to "International Plumbin,- Code", and replacin-the references to "International Fuel Gas Code"and "International Plumbin'-Code" with "Uniform Plumbin-Code as adopted by SCC 12.05.025".Additionally, the IMC is chanked with the followin-revisions: (1) Chapter I of the IMC is revised by deletin-Sections 103, 104, and 106-110 and is revised by deletin- references to the ["INTERNATIONAL EXISTING BUILDING CODE (IEBC)",] "International Enemy Conservation Code (IECC)" f.f and "International Residential Code I(RC)", (2) Chapter 3, Section 301.6 (Fuel-as appliances and equipment) of the IMC, is revised by deleting the words "fuel gas distribution piping and equipment" and "fuel gas fired appliance ventink systems"; (3) Chapter 6, Section 605.1 (General) of the IMC, is revised by addin,- an exception to read: "Exception: Filters may be installed downstream of' any heat exchan-er or coil when environmental conditions are such that filters installed upstream of a heat exchan-er or coil de-rade system performance.", (4) Chapter 8,Section 804.1 (Direct-vent terminations) of the IMC, is revised by addin,-a second sentence to read: "Combustion vents for direct-vent chambers are at least three feet hi,-h or Provide snowdrift prevention. ", (5) Chapter 9, Section 907.1 (General) of the IMC, is revised by addin'- a second sentence to read: "Commercial standard UL 2790 may be accepted as an alternative to UL 791 and residential standard UL 508 and UL 698 may not be acceptable as an alternative to UL 791. (6) Chapter 10, Section 1001.1 (Scope) of the IMC, is revised, with the exceptions remaining, to read: "Scope. This chapter -overns the installation, alteration, and repair of boilers, water heaters, and pressure vessels not subiect to the provisions of the Department of Labor and Workforce Development under AS 18.60.180- 18.60.395. (7) Chapter 10 of the IMC is revised by deletin'-Section 1011, (8) Chapter 14(Solar thermal systems) of the IMC, is revised by deletin'-the body of the chapter and insertin- a new Section 1401.1 to read: "Section 1401.1 General. Solar enemy equipment and appliances must be installed in compliance with the Solar Enemy Code as adopted by 8 AA 63.010, a antended Mont M tim. o im. ", (9) Chapter 15(Referenced Standards) of the IMC is revised by addin'-, to the list of referenced UL standards, UL 2790 - 2019 Revision Standard for Commercial Incinerators, adopted by re erence. 12.05.035 - National Electrical Code adopted. (a) The 2020 Edition of*NFPA 70, National Electrical Code, issued by the National Fire Protection Association on Au,-ust 5, 2019, and approved by the American National Standards Institute on Au,-ust 25,2019, constitutes 2005 Edition of the National Elee+..;,..,� Code adopted by the State of Alaska on june 14, 2006 and the National Fire Pr-ote institute on August 5,2004 eonstitu the minimum electrical code for the City of Seward. Although not published in full in this section, all of the provisions of the National Electric Code shall be and are hereby adopted by reference to the same extent as if set forth in full in 120 this section, except to the extent that the National Electric Code shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall prevail. (b) The City of Seward shall possess three copies of the city designated edition of the National Electrical Code, for public use, inspection and examination, so long as the provisions thereof remain in force. (c) The National Electric Code, shall regulate all occupancies and buildings in the City of Seward. It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, improve, convert, demolish, or equip any building or structure in the city, or cause or permit the same to be done, contrary to or in violation of any of the provisions of the National Electric Code adopted and incorporated as the Seward electrical building code by this section. 12.05.040 - Uniform Sign Code adopted. (a) The Uniform Sign Code, 1997 edition, as recommended and approved by the International Conference of Building Officials of Whittler California, is hereby designated and shall be incorporated in the Seward sign code and shall constitute the laws of the city relating to sign regulation. All of the provisions of the Uniform Sign Code are hereby adopted by reference to the same extent as if set forth in full herein, except to the extent that if the Uniform Sign Code conflicts with this chapter or any relevant ordinance later adopted, the provisions of the ordinance shall prevail. (b) The City of Seward shall possess three copies of the city designated edition of the electric code as adopted in SCC 12.05.035National Eleetrien! Cod for public use, inspection, and examination. (c) It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, improve, convert, demolish or equip any building or structure in the city, or cause to permit the same to be done, contrary to or in violation of any of the provisions of the National Electrical Code adopted and incorporated as the Seward electrical code by this section. 12.05.045 -Appeals. (a) Any person aggrieved by an administrative officer's interpretation and enforcement of the codes of technical regulation as adopted by this chapter may appeal the administrative ruling to the city council pursuant to the provisions of section 9.15.112. 12.05.050-International Fuel Gas Code A. The International Fuel Gas Code, 2021 Edition (IFG0 Chapter 3 Section 304 and Chapters 6-7, are adopted by reference and approved and published by the International Code Council, is hereby desi,-hated and shall be known as the Seward Fuel Gas Code and shall constitute the laws of the City relatin,-to buildin-re-elation. Althou,-h not published in full in this section, all provisions of the International Fuel Gas Code, 2021 Edition, except as provided in subsection D of this section, shall be and hereby adopted by reference to the same extent as if set forth in full in this section, except to the extent that the International Buildin-Code as adopted in SCC 12.05.011 shall be in conflict with this code or any relevant ordinance later adopted, in which case the provisions of this code shall prevail. 121 R The City of Seward shall possess three copies of the City desi,-hated edition of the International Fuel Gas Code, for public use, inspection and examination, so lon'- as the provisions thereof remain in force. C: It shall be unlawful for any person to erect, construct, enlarge, alter, repair, move, remove, convert, demolish, or equip any buildin-or structure in the city, or cause or permit the same to be done, contrary of any provision of the provisions of the International Fuel Gas Code adopted and incorporated as the Seward Buildin'- Code by this section. D. The International Fuel Gas Code (IFGC), 2021 Edition, adopted in Subsection A of this section is adopted by reference to re-elate all occupancies and buildin,-s, except that the IFGS is revised by deletin,-all the references to "ICC Electrical Code"or "NFPA 70"and replacin,- those references with "Electrical Code as adopted by SCC 12.05.035" and the IFGC is revised by deletin,- all references to the "International Plumbin'- Code" and replacing them with "Uniform Plumbing Code as adopted by SCC 12.05.025'. Additionally, Chapter I if the IFGC is revised by deletin'- references to the "International Enea- Conservation Code (IEC0 Chapter 12.10 - Signs Repealed effective March 5, 1998. Section 2. This ordinance shall take effect ten (10) days following its enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA this 1 lm Day of September, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 122 • AMP Resolution 2023-101 : A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Approve The Emergency Repair Of The Fire Department Water Main In The Amount Of $39,400 And Appropriate Funds Documents: • 2023 Agenda Statement • 2023 Resolution 2023-101 • Quote for Services 123 City Council Agenda Statement Meeting Date: August 28, 2023 To: City Council Through: Norm Regis,Acting City Manager From: Clinton Crites,Fire Chief Subject: Resolution 2023-101: Authorizing The City Manager To Approve The Emergency Repair Of The Fire Department Water Main Line In The Amount Of$39,400 And Appropriating Funds Background and justification: The Seward Fire Department Station was built in 1963 and has original plumbing throughout the building and to the street water main. The volunteers and staff use the water at the station for drinking, showering, sanitation, laundry, filling apparatus, and cleaning. On 08-07-2023 one of our firefighters came into work to discover a main galvanized water line had burst and was flooding the apparatus bay and down into our basement into the building permit and fire records room. Many boxes of legal records had to be dried out and scanned to try to preserve their history,and the water cleanup of the station required many people and hours to complete. We have a temporary fix to the leak;however,it is believed the repair will not last long and other rust spots are beginning to show signs of other future leaks to occur. The two main shut offs for the water to the station are original valves and cannot be turned off They are both stuck open and in case of a major leak, the only option would be to shut down water to the entire Fourth Ave downtown district until the same scope of work can be completed. There are no other options than to replace the valves so further repair work can be completed. Multiple contractors were contacted to inquire about fixing the water lines, but only one of them sent in a quote for the job. To fix the water main involves some major excavating of the street in front of the station and underground work. The main water line and associated valves to the station will be replaced and interior pipe replacement can occur, including the repair to the street and sidewalk after replacing the water main at the Fire Department. This project has been reviewed by Metco and is the only company that supplied us with a quote for this job. Metco has parts on hand and is ready to begin immediate work. We ask that the amount quoted be approved to fix the essential water main into the building. This is an emergency situation as the rusting pipes could continue to break causing major flooding and water damage to the station. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: Vol 12.2.9,Vol II 13.1 Strategic Plan: Page 13 124 Other: Certification of Funds Total amount of funds listed in this legislation: $ 39,400.00 This legislation(✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ 39,400.00 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): X Not budgeted Not applicable 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 $ 9,782,039 Finance Director Signature: .5444- Attorney Review RYes Attorney Signature: X Not applicable Comments: Administration Recommendation eAdopt Res. Other: 125 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-101 A Resolution Of The City Council Of The City Of Seward,Alaska,Authorizing The City Manager To Approve The Emergency Repair Of The Fire Department Water Main Line In The Amount Of$39,400 And Appropriating Funds WHEREAS, several leaks have been forming recently on the main water line inside the fire hall; and WHEREAS,the valve at the street and inside the station are not operable for any service or repairs; and WHEREAS,there is no other option to make repairs to the existing plumbing without substantial water line and valve replacements; and WHEREAS,the water main needs to be dug up, a hot tap placed on the main water line and new line run into the basement of the fire hall; and WHEREAS,the original 2" main is inadequate for the needs of the building or any future commercial property needs, and the 6" water line is less expensive than 4" pipe to hot tap; and WHEREAS, also included is installing a new valve inside the fire hall, along with plumbing repairs to the leaking 2" galvanized pipe from the basement and up into the apparatus bay; and WHEREAS, as an emergency repair, Metco has submitted a quote for the project in the amount of$39,400.00 including the repair to the street and sidewalk after replacing the water main at the Fire Department. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. The City Council hereby authorizes the City Manager to approve the emergency repair of the Fire Department by METCO Alaska of the water main line in the amount of $39,400. Section 2.Funding in the amount of$39,400 is hereby appropriated from the General Fund Reserved Account no. 01000-0000-3400 to Buildings Expense Account 01000-1220-8102. 126 CITY OF SEWARD,ALASKA RESOLUTION 2023-101 Section 3.Funding in the amount of$15,500 is hereby appropriated from the General Fund Reserved Account no. 01000-0000-3400 to the Infrastructure Expense Account 01000- 1220-8101. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 28m day of August 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 127 ET�•�� 2701 Seward Highway 1 Seward,AK 99664 907-224-3151 Seward Fire Department water service sidewalk and road repairs 8/7/23 Repair and replace concrete and asphalt removed during the installation of new water service at the Seward Fire station. Total price $15,500 1 feel like I can do better on the asphalt price but having trouble getting people to follow up with quotes. I feel like the price given would be worst case. 128 ETCO 2701 Seward Highway Seward,AK 99664 907-224-3151 Seward Fire Department water service 8/7/23 Furnish and install all parts and labor need to replace existing water service at the Seward fire station with new 6" Ductile iron pipe. Included All excavation and backfill. Temporary dirt ramp for door access 6" valve 6" Ductile iron Pipe 6" x2" flange inside Cutting hole in concrete wall 2" ball valve in basement 2" copper from 6" flange up through the floor to the valve located midway in the engine bay 2" T and ball valve in engine bay Hose bib in engine bay All 2" pipes insulated. We would need to completely close 41' av foe a minimum of one working day if any unforeseen circumstances come up it may need to be closed for an additional day. Total price. $23,900.00 129 • AMP Resolution 2023-096: Authorizing The City Manager To Enter Into A Consent Assignment To Breeze Inn, LLC, To The Lease Agreement L04-096 With Juris Mindenbergs, For Lot 313, Block 1, Marina Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2005-8, Seward Recording District, Third Judicial District, State Of Alaska. To Amend Article 3 And Extending The Term Of The Lease For 18 Years And Add Two Five Year Options To Extend Documents: • Agenda Statement • Resolution 2023-096 • Assignment of Lease • Extension of Lease 04-096 • Breeze Inn Lease 04-096 • Breeze Inn First Amendment to Lease 04-096 • Breeze Inn Aerial • Breeze Inn Plat 130 City Council Agenda Statement . Meeting Date: August 28, 2023 To: City Council Through: Norm Regis,Acting City Manager From: Norm Regis,Harbormaster Subject: Resolution 2023-096: Authorizing The City Manager To Enter Into A Consent Assignment To Breeze Inn, LLC, To The Lease Agreement L04-096 With Juris Mindenbergs, For Lot 313, Block 1, Marina Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2005-8, Seward Recording District, Third Judicial District, State Of Alaska. To Amend Article 3 And Extending The Term Of The Lease For 18 Years And Add Two Five Year Options To Extend Background and justification: Juris Mindenbergs currently has Lease L04-96 containing 74,180 square feet more or less of Lot 3B Block 1 Marina Subdivision, City of Seward, Alaska and recorded as Plat No.2005-8 in Seward Recording District, Third Judicial District, State of Alaska. Juris Mindenbergs has requested approval to assign the lease to Breeze Inn, LLC, which will continue to use the leased land for a Hotel, Restaurant. Article 14 of the lease allows lease assignments upon findings by Council that use is found to be in the public interest. The current lease L04-96 will expire on September 30 2035. Breeze Inn,LLC. would like to request an eighteen year lease extension to the original lease which would make the lease term ending date September 30, 2053. Breeze Inn,LLC.Is also requesting two five-year options to extend on approval of the then council. The City is also amending Article 3 adding 3.8, which was not in the original lease. 3.8 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, 2023 and on July 1 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. 131 This is consistent with the methodology used in all new lease actions approved by the Council. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: Attract new business and industry to the greater Seward area. 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. Other: Certification of Funds Total amount of funds listed in this legislation: S 62,000.00 This legislation(✓): Creates revenue in the amount of: $ $62,000.00 Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): X Budgeted Line item(s): Not budgeted Not applicable 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 $ Finance Director Signature: G Attorney Review X Yes Attorney Signature: Not applicable Comments: 132 Administration Recommendation XeAdopt Resolution Other: 133 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-096 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Enter Into A Consent Assignment To Breeze Inn,LLC, To The Lease Agreement L04-096 With Juris Mindenbergs, For Lot 3B, Block 1, Marina Subdivision, City of Seward, Kenai Peninsula Borough Plat 2005-8, Seward Recording District, Third Judicial District, State Of Alaska. To amend Article 3 And Extend The Term Of The Lease For 18 Years And To Add Two Five Year Options To Extend WHEREAS, Juris Mindenbergs ("Lessee") has requested an assignment of lease to Breeze Inn, LLC of the existing lease agreement with the City of Seward for 74,180 square feet, more or less of Lot 313, Block 1, Marina Subdivision, City of Seward, Kenai Peninsula Borough, Plat No. 2005-8 recorded in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, Article 14 of the Lease provides that the Lessee shall have the right to assign the lease upon findings by the Council that use is found to be in the public interest; and WHEREAS,the lease site will continue to be utilized as a hotel,restaurant and retail shop and is consistent with current zoning and land use regulations; and WHEREAS, the current lease has been in effect since October 1, 2005; and WHEREAS,the current lease will expire September 30, 2035; and WHEREAS,Breeze Inn LLC,is requesting to extend the lease term by eighteen years and to add two five year options to extend; and WHEREAS,the city is amending Article 3 by adding 3.8, Interim Rental Adjustments. 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 Consent to Lease Assignment to Breeze Inn, LLC, in substantially the form as attached hereto. Section 2. The recitals set forth above are incorporated herein by reference and adopted as findings of the City Council. For the reasons stated, an assignment to Breeze Inn LLC, in the form presented at this meeting is found to be in the public interest. 134 CITY OF SEWARD,ALASKA RESOLUTION 2023-096 Section 3. The City Manager is hereby authorized to amend and extend the lease with Breeze Inn,LLC,in substantially the form as presented at this meeting is found to be in the public's interest. Section 4. This resolution shall take effect 30 days from the date and posting of adoption or on the date of closing of the sale on the lease site to Breeze Inn, LLC. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of August 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 135 ASSIGNMENT OF LEASE RE- L09-095 THIS ASSIGNMENT OF LEASE ("Assignment") made and entered into between Juris Mindenbergs, Lessee, 4128 148 h Avenue NE, Redmond, Washington 99052, hereinafter called "ASSIGNOR", and Breeze Inn, LLC, P.O. Box 1466 Seward, Alaska 99664, hereinafter called "ASSIGNEE"with the consent of the City of Seward, hereinafter called "LESSOR". WHEREAS,ASSIGNOR and LESSOR,a home rule municipal corporation,organized and existing under the laws of the State of Alaska, are parties to a Lease dated October 1', 2005, as amended by the First Amendment to Lease Agreement dated September 7, 2006 (collectively as amended, the "Lease"). Subject to the covenants, conditions and stipulations in the Lease, ASSIGNOR leases from LESSOR the following improved real property: Lot 3, Block 1, Marina Subdivision,City of Seward,Alaska and recorded as Plat No.2005-8 in Seward Recording District, Third Judicial District, State of Alaska,consisting of approximately 72,125 square feet,more or less ("Premises"). WHEREAS, ASSIGNOR and ASSIGNEE are parties to a Purchase and Sale Agreement dated June 26, 2023 ("Purchase Agreement"), which includes the sale of the improvements on the Premises and assignment of the Lease. WHEREAS, this Assignment is conditioned upon the occurrence of the following two events and shall only become effective("Effective Date")on the date which is the later of 1)thirty (30) days from the date and posting of adoption of a passed and approved resolution by the City Council of Lessor authorizing the City Manager to enter into a Consent to Assignment to ASSIGNEE, or 2) closing under the Purchase Agreement ("Closing Date"). Failure of either condition precedent shall result in this Assignment being null and void. WITNESSETH,that for valuable consideration paid by the ASSIGNEE to the ASSIGNOR, receipt whereof is hereby acknowledged,the ASSIGNOR assigns to the ASSIGNEE all of its right, title and interest in and to the Lease to ASSIGNEE as of the Closing Date. After the Closing Date ASSIGNOR shall have no further obligations under or liabilities arising from the Lease,except; 1) those arising from or related to circumstances prior to the Closing Date; and 2) those based on ASSIGNOR's duty to defend and indemnify the Landlord pursuant to Article 15 of the Lease. ASSIGNEE accepts the assignment and delegation and assumes and covenants during the continuance of said Lease term to pay the rents reserved and to perform the covenants, conditions, and stipulations in said lease, as amended,to be performed by the ASSIGNOR, including without limitation,Article 21 —Environmental Concerns and to keep indemnified the ASSIGNOR against all actions, claims,and demands whatsoever in respect to the said rents,covenants,conditions,and stipulations, or anything relating thereto. ASSIGNOR agrees to indemnify,hold harmless and defend ASSIGNEE from and against 487&6230-7642,v.2 136 any obligations, liabilities,costs and claims(including reasonable attorney's fees)arising as a result of or with respect to the Lease that are attributable to the period of time prior to the Closing Date. ASSIGNEE agrees to indemnify, hold harmless and defend ASSIGNOR from and against any obligations,liabilities,costs and claims(including reasonable attorney's fees)arising as a result of or with respect to the Lease that are attributable to the period of time from and after the Closing Date. ASSIGNEE agrees to indemnify LESSOR in accordance with Article 14.1 (d)of the Lease. This Assignment shall be binding on and inure to the benefit of the ASSIGNOR and ASSIGNEE, their heirs, executors, administrators, successors in interest and assigns. This Assignment shall be governed by and construed in accordance with the laws of the State of Alaska. This Assignment may be executed in multiple counterparts,which together shall constitute one and the same agreement. 4876-6230-7642,v.2 137 IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the dates indicated. ASSIGNOR: ASSIGNEE: Breeze Inn, LLC ZS By: Authorized Members Date z /Z&Z 5 f Juris Mindenbergs Nicole Lawrence Date� z3 C01K Lawrence Date el aG3 Pamela Eiting Date[ j (LQZ� arolf STATE OF WASHINGTON } )ss G-r) THIS IS TO CERTIFY that on this 2�May of Nola., 2023, personally appeared before me the undersigned, a Notary Public in and for the State 4jWashington, to me known to Juris Mindenbergs who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that they are authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Washington My Commission Expires: 01/0 1 /.�!�/2.-7 Notary Public d State of Washington CNRiSTINE TOBIN Orly Comm. Expires 07101f2027 Commission#208803 138 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT } THIS IS TO CERTIFY that on this C day of 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Colby Lawrence, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. �111111i11i1Ir11///�yj// . ��G� �'.HULB/f��i _ otary Public in and for �+ Alaska _gg NQTARy ': My Commission Expires: #r6/-ZL ,,��•.PUB :�� /�rrril�Il�iti11111� STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this / day of AQ of s , 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Nicole Lawrence, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. 11111111AIIIICU�/ /U' i`���� H� �i� _Notary Public in and for =� U �*��J Alaska ,� � • My Commission Expires: : 4 C rriilnllnl�ll��m 139 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 446is;, 2023, personally appeared before me the undersigned,a Notary Public in and for the State of Alaska,to me known to Pamela Eiting, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. ofili1A11I//A!/ 3. HUgV/ Notary Public in and for . .'° Alaska NOTARY = My Commission Expires: �1_7 PUBLIC %9TF•� ''R\P ��� STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 4u6uS)' , 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Duke Marolf,on behalf of Breeze Inn,LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabo/ve written. 0�\l�till HV _Notary Public in and for AN Alaska AT V �•'• My Commission Expires: 77zr,,�z y : 40 ;}F 140 LEASE EXTENSION AMENDMENT (RE-04-096) THE CITY OF SEWARD,ALASKA,a home rule municipal corporation,organized and existing under the laws of the State of Alaska, hereinafter referred to as "CITY," whose address is PO Box 167, Seward, Alaska 99664 and Breeze Inn LLC, P.O. Box 1466 Seward, Alaska 99664, hereby agree that the lease agreement 04-096, dated October 1, 2005, as amended by the First Amendment to Lease Agreement dated September 7,2006(collectively as amended,the"Lease"), for Lot 313, Block 1, Marina Subdivision, City of Seward, Alaska and recorded as Plat No. 2005- 8 in the Seward Recording District, Third Judicial District, State of Alaska is hereby amended as follows: 1. Article 2 is hereby amended to read as follows: ARTICLE 2. LEASE TERM and OPTIONS TO EXTEND 2.1 Lease Term. The term of this Lease (the Lease Term) shall be in accordance with the CITY'S authorizing Resolution No. 2004-96 and the Resolution approving this amendment("the collectively"the Resolution"). The Lease Term shall commence October 1, 2005 ("the Effective Date") and shall be extended for and additional eighteen(18) years ending at midnight on September 30, 2053. 2.2 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for Two additional Five year(5) year periods,provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; and c) LESSEE shall exercise its options to extend by sending written notice in accordance with the provisions of Article 35 of this LEASE. d) The City Council of City, at the time each option to extend is exercised, approves the extension by resolution or ordinance. 2. Article 3.8 is hereby amended to read as follows: ARTICLE 3 RENTAL RATE and INTERIM RENTAL ADJUSTMENTS 3.8 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 1 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 Page I of 5 141 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 accomplish as nearly the same result as if the CPI had not been revised or ceased to be published. 3. Article 4.1 is hereby amended to read as follows: ARTICLE 4.1 USE OF LEASED LAND LESSEE shall continue to operate a hotel, and restaurant throughout the term of the lease, and failure to do so constitutes a condition of default. 4. Article 6.1(a) is amended by deleting this Article. 5. Article 11.2 is amended by deleting this Article. 6. Article 12.3 is amended by deleting this Article. In all other respects, the Lease is to remain unchanged and in full force between the undersigned parties. LESSOR: LESSEE: CITY OF SEWARD Norm Regis, Acting City Manager Breeze Inn, LLC By: Authorized Members Date y Date: � �� Colby awrence Date. �J1 /ZD Nicole Lawrence Frederick Duke Marolf M1 Date: Pamela Eiti g Page 2 of 5 142 ATTEST: Kris Peck, City Clerk (City Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2023, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Norm Regis, known to me and to me known to be the Acting City Manager for the City of Seward, Alaska,and authorized to execute documents on its behalf,and is the individual named in and who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this dayof AuGv5 2023, personally appeared beforeme the undersigned, a Notary Public in and for the State of Alaska, to me known to be Authorized Member Colby Lawrence the individual that executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed,for the uses and purposes therein mentioned of the Limited Liability Company and on oath stated that he is authorized to execute said instrument on behalf of the Limited Liability Company . WITNESS my hand and notarial seal the day and year first hereinabove written. \\1r,1{11N1A11I/kj�/ -- HUB/�//�j��i Sion15 Notary ublic in and for O� Y = AlaskaMy Commission Expires: Mes*tI 0 Page 3 of 5 HINmilltil\\\\� 143 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ! day of uu5! 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Nicole Lawrence, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. ����111 i11119 1 Nota Public in and for Alaska NOTARY My Commission Expires- *% PUBLIC �y1111!!1l11111111���� STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this 1 day of Av6o;" , 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Frederick Duke Marolf, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. lNlyi . Notaroubli in and for Alaska m� My Commission Expires: NOTARY _ �1751?`T .PUBLIC..: �'711/161111111N'�'� Page 4 of 5 144 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT } THIS IS TO CERTIFY that on this % day of � �� ' , 2023, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to Pamela Eiting, on behalf of Breeze Inn, LLC, who executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. ����tt1111>tl% � c •. �, Notary Public in and for Alaska OT C My Commission Expires: : = PUBLIC.': �r«rnll�tu� Page 5 of 5 145 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and Juris Mindenbergs Effective Date: October 1, 2005 146 d TABLE OF CONTENTS ARTICLE1 -LEASED LAND ................................................................................................l 1.1 Description of Leased Land.................................................................................1 1.2 Covenant of Quiet Enjoyment; Warranty of Title .................................................1 1.3 Survey of Leased Land.........................................................................................2 1.4 Property Accepted................................................................................................2 1.5 Permits................................................................................................................2 1.6 Platting................................................................................................................3 ARTICLE2 - LEASE TERM...................................................................................................3 2.1 Lease Term..........................................................................................................3 2.2 Interim Right to Possession..................................................................................3 2.3 Lease Subject to Referendum ...............................................................................3 2.4 Termination.........................................................................................................4 2.5 Options to Extend................................................................................................4 2.6 Prior Leases.........................................................................................................4 ARTICLE3 - RENTAL RATE................................................................................................4 3.1 Initial Rental Rate................................................................................................4 3.2 Rental Adjustments..............................................................................................5 3.3 Procedure for Rental Adjustment.........................................................................5 3.4 Effect of Late Appraisal by CITY.........................................................................5 3.5 Appraisal by LESSEE..........................................................................................6 3.6 Effective Date of Adjusted Rental Rate ................................................................6 3.7 Late Payment Charge ..........................................................................................7 ARTICLE 4- USE OF LEASED LAND..................................................................................7 4.1 Use of Leased Land.............................................................................................7 4.2 Obligations of LESSEE........................................................................................7 4.3 No Preferential Rights to Use Public Facilities....................................................7 4.4 Adequacy of Public Facilities ..............................................................................7 4.5 Tariffs and Other Service Fees.............................................................................8 4.6 Time for Payment of Utilities and Taxes..............................................................8 4.7 Other Uses...........................................................................................................8 ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS ........................................................8 5.1 Utilities................................................................................................................8 5.2 Third-Party Improvements...................................................................................9 5.3 Easements............................................................................................................9 ARTICLE 6 - CONSTRUCTION BY LESSEE ....................................................................10 6.1 Improvements on Leased Land...........................................................................10 6.2 City Review of Construction...............................................................................11 ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS....................................11 7.1 Return of Leased Land in Original Condition....................................................11 7.2 Return of Leased Land in Different Condition ...................................................11 -i- Q\Documents and Settings\Scotti\Local Settings\Temporary Internet Files101-KIMBreeze Inn Lease Agreement 2005(11).doc 147 ARTICLE8 - FORCE MAJEURE ........................................................................................I I ARTICLE 9 - CITY ACTS OF DEFAULT...........................................................................12 ARTICLE 10 - REMEDIES FOR CITY'S ACTS OF DEFAULT........................................12 ARTICLE 11 - LESSEE'S ACTS OF DEFAULT.................................................................13 ARTICLE 12 - REMEDIES FOR DEFAULT BY LESSEE.................................................14 ARTICLE 13 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE ....................... 16 13.1 Real Property Improvements.............................................................................. 16 13.2 Personal Property......................... ....................................................................16 ARTICLE 14 - ASSIGNMENT OR SUBLEASE.................................................................. 16 14.1 Assignment qf Lease or Subleasing...............................................................I....16 14.2 Assignment of Lease for Security............... ....................................................... 17 14.3 Assignment to Affiliate.......................................................................................18 ARTICLE 15 -LESSEE'S DUTY TO DEFEND/INDEMNIFY ...........................................18 ARTICLE 16 - CITY'S DUTY TO DEFEND/INDEMNIFY................................................18 ARTICLE17 - INSURANCE.................................................................................................19 17.1 Minimum Insurance Requirements.....................................................................19 17.2 Subrogation Rights Waived................................................................................19 ARTICLE 18 - CONDEMNATION.................. ....................................................................20 ARTICLE 19 - ARBITRATION............................................................................................21 19.1 Arbitration.........................................................................................................21 ARTICLE 20 - MAINTENANCE AND REPAIRS...............................................................22 20.1 Normal Maintenance .........................................................................................22 20.2 Safety Issues......................................................................................................22 20.3 Cost of Repairs..................................................................................................23 ARTICLE 21 -ENVIRONMENTAL CONCERNS..............................................................23 21.1 Hazardous Materials .........................................................................................23 21.2 Permits and Reporting.......................................................................................25 ARTICLE 22 - ESTOPPEL CERTIFICATES......................................................................26 ARTICLE 23 - CONDITIONS AND COVENANTS.............................................................26 ARTICLE 24 - NO WAIVER OF BREACH.........................................................................26 ARTICLE 25 - TIME OF THE ESSENCE............................................................................27 ARTICLE 26 - COMPUTATION OF TIME.........................................................................27 ARTICLE 27 - SUCCESSORS IN INTEREST.....................................................................27 ARTICLE 28 - ENTIRE AGREEMENT.......................................................................... ....27 ARTICLE 29 - GOVERNING LAW .....................................................................................27 ARTICLE 30 - PARTIAL INVALIDITY....................................... ......................................27 ARTICLE 31 - RELATIONSHIP OF PARTIES...................................................................27 ARTICLE 32 - INTERPRETATION.....................................................................................28 ARTICLE 33 - CAPTIONS................................................... ................................................28 ARTICLE 34 -AMENDMENT..............................................................................................28 ARTICLE 35 - NOTICES ............... ............................................................... ......................28 ARTICLE 36- FIRE PROTECTION....................................................................................29 -ii- CADocuments and Settings\ScottlNt-ocal SeftingskTemporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 148 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 Juris Mindenbergs(the "LESSEE"), dba The Breeze Inn, whose mailing address is 4128 148th Avenue NE, Redmond, Washington 98052. WHEREAS, LESSEE has indicated its desire to replat Lots 3A and 7, Block 1, Marina Subdivision, an area of approximately 1.66 acres in size, as more particularly described below; and WHEREAS, the City Council of CITY has determined that continued 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 present or future environmental regulations or controls with respect to LESSEE's operations on the Leased Land during the lease term. 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 of Leased Land. The Leased Land is located in the City of Seward,Alaska. The Leased Land is described as follows: Lot 3B,Block 1,Marina Subdivision,Kenai Peninsula Borough,Plat 2005-8, Seward Recording District, Third Judicial District, State of Alaska,containing 72,125 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. 1.2 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: a) LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; -7 - CADocuments and Settings\Scott1\Local Settings\Temporary Internet Fi(es\0LK17A\Breeze Inn Lease Agreement 2005(11).doc 149 b) CITY owns the Leased Land in fee, and, subject to the conditions described in Sections 2.2 and 2.3 herein, is fully empowered to enter into this Lease; and c) CITY is unaware of any prior conflicting use of the Leased Land that would adversely affect LESSEE's intended use of the subject parcel. 1.3 Survey of Leased Land. If not completed prior to execution of this LEASE, within ninety (90)days from the date of this LEASE,LESSEE, at its sole cost,will cause the Leased Land to be surveyed and replatted by a land surveyor registered in the State of Alaska. A copy of the drawing and description of the Leased Land based upon this survey shall be attached to this LEASE as Exhibit B and shall be incorporated herein by reference. In such event, the description of the Leased Land in Exhibit B shall supersede the description in Exhibit A, and shall be considered the correct description of the Leased Land for all purposes under this LEASE. LES SEE shall provide CITY a copy of any and all surveys within ten(10)days of LESSEE's receipt of any and all surveys. CITY shall have the right to comment upon any and all surveys, but the exercise of this right shall not imply any obligation to do so or any obligation to do so in any particular way. If CITY objects to the surveyor's conclusions in the survey,CITY may give written notice to LESSEE of CITY's objection within thirty(3 0)days of receipt of the survey. CITY shall then engage a second land surveyor registered in the State of Alaska at CITY's expense to make a second survey of the Leased Land. CITY shall provide LESSEE a copy of the second survey within ten(10) days of CITY's receipt of the second survey. Unless CITY and LESSEE agree which survey is acceptable,the acceptable survey shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 1.4 Property Accepted"As-is". LESSEE acknowledges that it has been in possession and control of the Leased Land since 1984 under prior leases,has inspected the Leased Land,and accepts the same "as-is" and without reliance on any expressed or implied representations or warranties of CITY(other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.5 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, -2- C:1Oocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A1Breeze Inn Lease Agreement 2005(11).doc 150 or board,LESSEE shall follow all City of Seward procedures,the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers(e.g., wetland fill permits), the Environmental Protection Agency(e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation(e.g., right-of- way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description prepared by LESSEE under Section 1.3 herein. If LESSEE requests a replat of the Leased Land prior to that time, 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. 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. ARTICLE 2- LEASE TERM 2.1 Lease Term. The term ofthis LEASE(the"Lease Term")shall be in accordance with CITY's authorization Resolution No. 2004-96(the"Resolution"). The Lease Term shall commence October 1, 2005 (the "Effective Date"). The Lease Term shall run for 30 years, ending at midnight on September 30, 2035. 2.2 Interim Right to Possession. LESSEE is hereby granted a revocable license to enter upon the Leased Land prior to the expiration of thirty(30) days from the date of passage and posting of the Resolution, subject to the terms of this Section. The granting of a revocable license to LESSEE under this Section is for the convenience of LESSEE only and does not grant any interest in the Leased Land. During the term of this revocable license, LESSEE shall not engage in any storage of materials, clearing, grading, excavation or construction of improvements on the Leased Land. CITY may revoke the license granted by this Section at any time, including without limitation upon the filing with the Clerk of CITY a petition for referendum on the Resolution. 2.3 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the Charter and Code of CITY this LEASE may be voided by referendum. The revocable license granted in Section 2.2 shall not affect or reduce the right of the voters of the City of Seward to reject this LEASE by referendum. LESSEE agrees that if the Resolution approving this -3- C:\Documents and Settings\Scott1\Local Settings\Temporary Internet FileS\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 151 LEASE is the subject of a referendum petition filed with the Clerk of CITY during the term of the revocable license granted by Section 2.2,LESSEE shall have no rights under this LEASE unless and until the Resolution is approved by the voters of the City of Seward, and LESSEE shall not be entitled to any damages or any other relief against CITY in the event the Resolution is not so approved. 2.4 Termination. This LEASE shall terminate at midnight on September 30, 2035. Except for extensions as provided in Section 2.5 below, this LEASE is not subject to renewal. 2.5 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for three (3) additional five(5)year periods (cumulative extensions not to exceed fifteen(15)years), provided that: a) LESSEE exercises any applicable option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; c) LESSEE shall exercise its options to extend by sending written notice thereof in accordance with the provisions of Article 35 of this LEASE; and d) The City Council of CITY, at the time each option to extend is exercised, approves the extension by resolution or ordinance. 2.6 Prior Leases. Leases RE-67-03 8 and RE-84-03 7, encompassing the Leased Land,are hereby terminated upon the Effective Date of this LEASE; provided, however, that all terms and covenants under such prior leases relating to the lessee's agreement to protect, indemnify, defend and save harmless CITY from all liabilities arising under each such prior lease shall survive termination. ARTICLE 3 - RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through December 31,2005,the annual rental rate for the Leased Land shall be sixty-four cents($.64)per square foot. CITY and LESSEE agree to use 72,125 square feet for purposes of computing the initial annual rental rate, even if the actual area of the Leased Land is slightly more or less. If a survey later shows the area to be different from the agreed size,the new measurement will be used for computing subsequent rental payments. Past rental payments will not be refunded, in full or part,if a subsequent survey depicts an area measurement less than 72,125 square feet. -4- CADocuments and Settings\Scottl\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 152 Effective January 1, 2006 through June 30, 2010, the annual rental rate for the Leased Land shall be set at$56,000. Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one-quarter ofthe annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1,2010, and on the same date every five years thereafter(each a"Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value(the"Fair Market Rental Value")of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. 3.3 Procedure forRental 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 -5- C:Tocuments and SettingslScottl\Local Settings\Temporary Intemet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 153 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 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. -6- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 154 3.7 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of$2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4- USE OF LEASED LAND 4.1 Use 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. 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 21 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 develop the Leased Land according to the site development plan provided to and approved by CITY,through the City Manager. The preliminary site development plan is attached to this LEASE as Exhibit C and incorporated herein by reference. Any changes to this site development plan require CITY approval,through the City Manager,prior to additional construction. LES SEE's failure to obtain CITY approval of any changes to the site development plan or LESSEE's failure to construct the improvements according to the site development plan, shall be a LESSEE Act of Default under this LEASE. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs,procedures,rules and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities -7- Q\Documents and Settings\Scotti\Local Settings\Temporary Internet FileslOLK17A1Breeze Inn Lease Agreement 2005(11).doc 155 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 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. 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. -s- CADocuments and Settings\Scottl\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 156 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 LES SEE's facilities on the Leased Land,it being the intent ofthe parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject, however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall be without expense therefor, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable or required that street,railroad, water, sewer, drainage, gas, power line and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other,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 -9- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 157 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) LESSEE shall cause to be constructed and operated on the Leased Land a northward extension to the existing hotel, including a lobby, entry way and parking. This construction is to be completed by April 1, 2006. b) The cost of any such construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. c) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. d) In a manner consistent with Section 4.2,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. e) 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. f) Any general contractor employed by LESSEE or its sublessees 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 ($50,000.00), 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. g) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. h) LESSEE shall comply with all federal, state and local statutes and regulations with -10- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\0LK17A\8reeze Inn Lease Agreement 2005(11).doc 158 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 Sections 4.2 and 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 inspect the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights-of-way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7- RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 13.1 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 of Lease RE-67-038 and Lease RE-84-037, 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 or prior to this LEASE. 7.2 Return of Leased Land in Different Condition. Notwithstanding the provisions of Section 7.1 above, upon termination of this LEASE for any reason LESSEE may return the Leased Land in a re-contoured or graded clean, safe, and stable condition different from its original condition provided CITY grants written approval of LESSEE's plans for development ofthe Leased Land contours, including its plans for material extraction and final grade. ARTICLE 8 - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of God,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. -11 - CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\CLK17A\Breeze Inn Lease Agreement 2005(11).doc 159 ARTICLE 9 - CITY ACTS OF DEFAULT Each of the following shall be a "CITY Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, when they are used in this LEASE, any one or more of the following events: 9.1 Failure by CITY to fulfill, observe or perform any covenants or agreements on its part to be observed or performed under this LEASE for a period ofthirty(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 CITY by LESSEE; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the default is corrected. 9.2 Violation by CITY of any applicable laws or regulations of the United States, the State of Alaska,the Kenai Peninsula Borough, or the City of Seward or any conditions of any permits issued by agencies ofthe City of Seward,the Kenai Peninsula Borough,the State ofAlaska or of the United States Government pursuant to the regulations of such agencies for a period of sixty(60) days after written notice specifying such violation has been given by the agency to CITY; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the violation is corrected. Furthermore, if CITY shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined, provided such proceedings are diligently pursued. ARTICLE 10 - REMEDIES FOR CITY'S ACTS OF DEFAULT 10.1 Whenever an act of default by CITY shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired,LESSEE shall have the following rights and remedies in addition to any rights and remedies that may be given to LESSEE by statute, common law or otherwise: a) Withhold payment of any rent otherwise due CITY to the extent of CITY's default; b) Recover from CITY,whether this LEASE be terminated or not,reasonable attorney's fees and all other expenses incurred by LESSEE by reason of the default by CITY; and/or c) Declare this LEASE terminated. 10.2 No expiration or termination of this LEASE shall expire or terminate any liability or -12- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 160 obligation to perform of CITY's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.3 Each right and remedy of LESSEE provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by LESSEE of any one or more of the rights and remedies provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by LESSEE of any or all other rights or remedies provided for in this LEASE, now or thereafter existing at law or in equity or by statute or otherwise. 10.4 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. ARTICLE 11 - 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: 11.1 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. 11.2 Failure by LESSEE to construct in accordance with Articles 4 and 6 hereof, a northward extension of the hotel, a new lobby, entry way and parking on the Leased Land and place the facilities in service by April 1, 2006. 11.3 Failure by LESSEE to observe, fulfill or perform any other covenants, conditions or agreements on its part to be observed or performed under this LEASE for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default,has been given to LESSEE by CITY;provided,however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 11.4 The making by LESSEE of an assignment for the benefit of creditors,the filing of a petition in bankruptcy by LESSEE,the adjudication of LESSEE as insolvent or bankrupt,the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property,or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency,reorganization, arrangement or readjustment of debt law or -13- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 161 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. 11.5 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 LES SEE'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. ARTICLE 12 - 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: 12.1 CITY may distrain for rent due any ofLESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628)with respect to sale of property shall be a commercially reasonable disposal. 12.2 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 sub-paragraph 12.1 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. 12.3 In the event LESSEE fails to construct, in accordance with Article 4 and 6 hereof, a northward extension of the hotel, a new lobby, entry way, and parking on the Leased Land -14- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 162 and place the facilities in service by April 1,2006,LESSEE shall, at LESSEE's sole expense, replat the Leased Land by December 31, 2006 to the original plat lines described in the prior leases and amendments referred to as the City of Seward's Lease Numbers RE-67-038 and RE-84-037. If reversion to the prior plat lines is necessitated,LESSEE shall restore,no later than September 1, 2006, improvements on the Leased Land to the same location and condition existing on the Effective Date. In the event of LESSEE's failure to comply with this Section, the City shall have all other rights and remedies described in this Article 12. 12.4 In addition to the above, CITY may: 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 from LESSEE an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE provided that if the CITY relets the Leased Land for the unexpired term of this LEASE, the CITY will refund such excess amounts, if any, after deducting all of the CITY's expenses in or in connection with reletting (including without limitation all repossession costs, brokerage commissions,legal expenses, administrative expenses, costs of advertising, and preparations for reletting)as such excess amounts are received by the CITY,but in no event shall the refund exceed the amount recovered from LESSEE; 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. 12.5 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. -15- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 163 12.6 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LES SEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 12.7 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. 12.8 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. ARTICLE 13 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13.1 Real Property Improvements. All improvements constructed by LESSEE 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 property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 13.2 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 14 -ASSIGNMENT OR SUBLEASE 14.1 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 this LEASE without CITY's prior written consent,in CITY's sole discretion. LESSEE may sublease a portion of the Leased Land or buildings or improvements located thereon only with CITY's prior written consent, which consent shall be granted if: -16- C:\Documents and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11)Aoc 164 a) The use of the Leased Land by the proposed sublessee is compatible with the use of adjacent lands; b) The proposed use is a permitted use under the then existing zoning regulations and comprehensive land use plan; c) LESSEE has made a written request to sublease a portion of the Leased Land or buildings or improvements located thereon and provided CITY with a copy of the sublease agreement. The sublease agreement shall state that it is subject to and subordinate to this LEASE and any amendments thereto; d) The sublessee shall agree to defend, indemnify and hold harmless the CITY, its officials, employees, and agents, from any and all liability or claims for damages, including personal injuries, death and property damage arising out of or resulting from sublessee's use of the Leased Land by themselves,their agents, contractors,guests or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors; e) LES SEE's full faith and credit shall remain obligated under this LEASE as though the sublease had not taken place; f) The sublessee assumes and agrees in writing to pay and perform all of the obligations of LESSEE hereunder including, without limitation, Article 21- Environmental Concerns; and g) The sublessee has credit-worthiness and operating experience suitable to manage any sublet facilities located on the Leased Land. 14.2 Assignment of Lease for Security. Notwithstanding Section 14.1 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 12 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, -17- C:\Documents and Settings\ScottMocal Settings\Temporary Internet Files\OLK17A\6reeze Inn Lease Agreement 2005(11).doc 165 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 11.3, CITY shall not exercise any of the remedies afforded to it under Article 12 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. 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. 14.3 Assignment to Affiliate. Notwithstanding Section 14.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2)1 or to an Alaska limited liability company in which LESSEE maintains a controlling 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 15 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend,indemnify and hold harmless CITY,its officials,employees,agents,and contractors from any and all liability or claims for damages,including personal injuries,environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 16 - CITY'S DUTY TO DEFENDANDEMNIFY 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. I Affiliate means a person that directly or indirectly tbrough one or more intermediaries controls,or is controlled by,or is under common control with,a corporation subject to the Alaska Corporation Code. -18- CADocuments and Settings\Scottl\Local SettingslTemporary Internet Files10LK17A1Breeze Inn Lease Agreement 2005(11).doc 166 ARTICLE 17 - INSURANCE 17.1 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. 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(3 0)days'notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 37 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. 17.2 Subrogation Rights Waived. To the extent permitted bylaw,LESSEE hereby releases CITY, -19- CADocuments and Settings\Scottl\Local Settings\Temporary Internet Files\OLK17AlBreeze Inn Lease Agreement 2005(11).doc 167 its elected and appointed officials, employees and volunteers and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone claiming through or under LESSEE by way of subrogation or otherwise, for any loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY,its elected or appointed officials, employees or volunteers or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and LESSEE'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's occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. ARTICLE 18 - CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use,LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land,LESSEE may notify CITY in writing to this effect,and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the Leased Land is subject. If at the time of such partial taking for public use,LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. -20- C:\Documents and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 168 ARTICLE 19 -ARBITRATION 19.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09,43.010 et. seq.), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than Fifty Thousand Dollars and No/100s ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than Fifty Thousand Dollars and No/100s($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim, dispute or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars and No/100s($50,000). The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five 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. -21 - C:\Documents and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 169 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 parry,at least thirty(30)days in advance of such hearing, 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 20- MAINTENANCE AND REPAIRS 20.1 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 writing,to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution and other protective equipment, if any are placed on Leased Land. 20.2 Sa,fety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty(30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest(as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs,then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk and expense. -22- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 170 20.3 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 ofthe 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 21 -ENVIRONMENTAL CONCERNS 21.1 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 ofthis LEASE. LESSEE acknowledges that he has been in possession and control of part or all of the Leased Land since May 23, 1984. b) Release of CITY. Any other provision of this LEASE to the contrary notwith- standing, LESSEE releases CITY from any and all claims, demands, penalties,fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney's fees, court costs,litigation expenses, and consultant and expert fees)arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision or by law or regulation. -23- CADocuments and Settings\Scotts\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 171 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; -24- C:Occuments and Settings\Scottl\Local Settings\Temporary Internet FllesIOLK17A\Breeze Inn Lease Agreement 2005(11).doc 172 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 21.1(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 ofthis 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 "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 judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46,the Resource Conservation and Recovery Act of 1976,the Comprehensive Environmental Response, Compensation and Liability Act of 1980,the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 21.2 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 -25- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 173 shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state or local government or agency required by any permit or Environmental Law,including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately 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 22 - ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party,or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect(or,ifthere has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof); and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 23 - 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 24 - 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. -26- CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 174 ARTICLE 25 - TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 26 - COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. ARTICLE 27 - 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 28 - 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 29 - GOVERNING LAW This LEASE shall be governed by, construed and enforced in accordance with the laws ofthe 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 30 -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 31 - 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 -27- C:\Documents and Settings\Scott1\Lccal Settings\Temporary Internet Files\0LK17A\Breeze Inn Lease Agreement 2005(11).doc 175 relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 32-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 33- CAPTIONS Captions of the articles,paragraphs and subparagraphs ofthis 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 34 - AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 35-NOTICES All notices, demands or requests from one party to another shall be delivered in person or be sent by mail, certified or registered,postage prepaid,to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Juris Mindenbergs 4128 148th Avenue NE Redmond, WA 98052 _28_ GADocuments and Settings\Scott1\Loca1 Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 176 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 36 - FIRE PROTECTION LESSEE shall at its sole cost,risk and expense provide fire protection to its operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field of fire prevention and control LES SEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five years. -29- CADocuments and Settings\Scott1{Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 177 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD Juris Mindenbergs By: Clark Corbridge Its: City Manager Date: Date: — ©{� ATTEST: to -z; Je Lewis, M , C ty Cler 0 o (City Seal) STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) This is to certify that on the /g day of 7 w� 2006, before me, the undersigned Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared Clark Corbridge to me and to me known to be the individual named in and who executed the foregoing instrument on behalf of The City of Seward, and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and year first written above. �tilfllll�/!/! t' _ NOTARY PUBLIC in and for Alaska ;' p1JB00 My Commission Expires:Z 3 D� OF N ///�,**'On EXP%%* ``` -30- /1111110 CADocuments and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 178 STATE OF ALASKA ) ss. THRD JUDICIAL DISTRICT ) This is to certify that on the l 7 ` day of 2006, before me, the undersigned Notary Public in and for the State of Alaska, duR commissioned and sworn as such, personally appeared Juris Mindenbergs to me and to me known to be the individual named in and who executed the foregoing instrument and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and year first written above. ♦�,XN U'91204 r �00 C-cAl NOTARY LIC in and for Alaska ® My Commission Expires: 3 /D -31 - O:\Documents and Settings\Scott1\Local Settings\Temporary Internet Files\OLK17A\Breeze Inn Lease Agreement 2005(11).doc 179 A 20`� 30-001447-0 L A Recording [list: 314 - Seward S 10/2/2006 12:00 PM Pages: i of 3 K �`�' 111111IIIIIIIIIIIII[lllllllf[111111[lllllllliilll l IIIIIIIIIIIIIJIII[11111111�1111 After Recording Return to: City of Seward Attention: Harbormaster PO Box 167 Seward, AK 99664 FIRST AMENDMENT TO LEASE AGREEMENT RE 2004-96 THE LEASE AGREEMENT dated October 1, 2005 (the "LEASE") for the property described as: Lot 3B, Block 1, Marina Subdivision, Kenai Peninsula Borough, Plat 2005-8, Seward Recording District, Third Judicial District, State of Alaska, containing 72,125 square feet, more or less (the "Leased Land"). Lease Memorandum Recorded as 2006-001191-0. 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 Juris Mindenbergs (the "LESSEE"), dba The Breeze Inn, whose mailing address is 4128 148 h Avenue NE, Redmond, Washington 98052 is hereby amended as follows: Section 6.1(a) of the Lease is deleted and replaced with: a) LESSEE shall cause to be constructed and operated on the Leased Land a northward extension to the existing hotel, including a lobby, entry way and narking. This construction is to be completed by June 1, 2007. Section 11.2 of the Lease is deleted and replaced with: Failure by LESSEE to construct in accordance with Articles 4 and 6 hereof, a northward extension of the hotel, a new lobby, entry way and parking on the Leased Land and place the facilities in service by June 1, 2007. Section 12.3 of the Lease is deleted and replaced with: In the event LESSEE fails to construct, in accordance with Article 4 and 6 hereof, a northward extension of the hotel, a new lobby, entry way, and parking on the Leased Land and place the facilities in service by June 1, 180 2007, LESSEE shall, at LESSEE's sole expense, replat the Leased Land by December 31, 2007 to the original plat lines described in the prior leases and amendments referred to as the City of Seward's Lease Numbers RE-67-038 and RE-84-037. If reversion to the prior plat lines is necessitated, LESSEE shall restore, no later than September 1, 2007, improvements on the Leased Land to the same location and condition existing on the Effective Date. In the event of LESSEE's failure to comply with this Section, the City shall have all other rights and remedies described in this Article 12. Section 19.1 of the Lease is amended in part as follows.- a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the,parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.310 et. seMc.), 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.. [The remainder of 19.1 is unchanged.] ,cdl other provisions of the Lease remain unchanged and in full force and effect. CITY: LESSEE: CITY OF SEWARD Juris Mindenbergs � By: Clark Corbridge Its: City Manager Date: / -r -7`Q 6 Date: ATTEST: Jean Lewis, CMC, City i� r (City Seal) �3e•�C3 ��d � ti rz II I I II I II I'i li I II I��I I II111 I II! 2 of 3 181 2006-001447-0 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) This is to certify that on the day of 2006, before me, the undersigned Notary Public in and for the State d Alaska, duly commissioned and sworn as such, personally appeared Clark Corbridge to me and to me known to be the individual named in and who executed the foregoing instrument on behalf of The City of Seward, and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and year first written above. o0c, +=_ ARY T PUBLIC in and for Alaska � y Commission Expires: STATE OF ALASKA ) Ss. THIRD JUDICIAL DISTRICT ) This is to certify that on the 6`4' day of , 2006, before me, the undersigned Notary Public in and for the State ot Alaska, duly commissioned and sworn as such, personally appeared Juris Mindenbergs to me and to me known to be the individual named in and who executed the foregoing instrument and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and year first written above. NO ARY PU1jLIC in and for Alaska My Commission Expires:T ��� i 1 I IIIINI I I$1,111111111 1 1 3 of 182 2006-001147-0 YGeographic Information Systems Breeze Inn Lot3B Block 1 yr'k", •1"144 North Binkley Street,Soldotna,Alaska 99669 M or fib R T Legend F F' LN 5M LL O • Mileposts F; City Limits t — Highways — Major Roads Roads — Town Medium Volume Vill — Town Low/Seasonal,Other a Proposed Parcels _ 0 I Image a - � Red: Band-1 'i y ■ Green:Band_2 Blue: Band_3 "ttl E Cr FLt7A+T MALL B �k i 1(0, TI I IYARE}0r :T ,,.inn rii.eur� W E; FLOA SMALL Cl +T This map is a user generated static output from an Internet mapping site and is for reference only.Data layers that appear on this map may or may not be accurate,current,or otherwise reliable. It is not to be used for navigation. Notes Type any notes here. DATE PRINTED: 1/14/2022 183 Cr OS t C,5 V) m o Q ft, E� CK Ld Ll-j Z E <O -' z LJ vmwv % Cl- cz L-1 c1l) �7d d c�l -Lw �LNj 'LQ� g 2 E V N Sol O V) lo e. p < E E E EL cN ,690,6 3nN3AV Hi&no-j 9 -—-—-—-—-- -3, �-,00.00N 0999-------- -------- 9f,00,05S 0 ci ff Cf) £T k '90 OOS' IQ £T zI xf 9"fZ.fos GY/Pz) vm 110/1, GYvm3s 41 Jx,Z:fos, (oL,3003,9 DNI&V38 o fJ� it > 4 ZI :_5- 5 E 1 2 440®OTC KENAI PENINSULA BOROUGH E 144 N. BINKL,EY ,, SOLDOTNA, ALA SKA - 99669-7599 BUSINESS(907)262-4441 FAX (907)262-1892 DALE BAGLEY MAYOR CERTIFICATE OF TAX DEPARTMENT I, Rhonda K. Krohn, Property Tax and Collections Supervisor for the Kenai Peninsula Borough, do hereby certify that all real pro erty taxes levied by the Kenai Peninsula Borough through December 31, 20E4 have been paid for the area (s) described as : Subdivision: MARINA SUBDIVISION MINDENBERGS REPLAT Parcel # 14731009-8 T01S R01W S03 SW0760001 MARINA SUB LOTS 1 & 7 & 8 BLK 1 Lot 7 Blo ck 1 Parcel # 14731017-1 T01S R01W S03 SW0960024 MARINA SUB REPLAT OF LOTS 3 4 8 BLK 1 Lot 3A Block 1 Effective January 1, 2005 the 2005 estimated taxes of $32 575 . 94 were �aid on the above property(s) . However, if the estimated faxes* are less han the actual taxes levied on July 1, 2005, the difference is a lien against the property(s) until paid. Witness my hand and seal this 24th day of May, 2005 . Rnonaa K. Kronn Property Tax and Collections Supervisor 185 • AMP Resolution 2023-097: A Resolution Of The City Council Of Seward, Alaska Approving Lease Amendment No. 1 With The United States Of America Acting By And Through The Secretary Of The Army Documents: • Agenda Statement • Resolution 2023-097 • Lease Amendment Request • Lease Amendment 1 • Army Dispatch Building Lease • Exhibit A Army Dispatch Building Plat • Exhibit B Army Dispatch Building Site Plan 186 City Council Agenda Statement Meeting Date: August 28, 2023 To: City Council Through: Norm Regis,Acting City Manager From: Brooks Chandler, City Attorney Agenda Item: Resolution 2023-097: A Resolution Of The City Council Of Seward,Alaska Approving Lease Amendment No. 1 To The Lease Agreement Between The City Of Seward And The United States Of America Acting Through The Secretary Of The Army Background and justification: The City of Seward has a long-standing relationship with the United States Army focused on allowing use of City property to provide recreational opportunities for military members. City property at the harbor has been used since 2011 as a dispatch center for vessels the Army moored at the Small Boat Harbor. The Army recently stopped using those vessels and intends to sell them this fall. The general manager of the Army's Seward Resort recently asked if the City would allow the use of the property to be converted from a dispatch center to a workout facility on the ground floor and short-term rental units on the second floor. These new uses comply with the current zoning regulations for this district but would require a lease amendment. The lease agreement was approved in 2011. The lease expires in 2031. There are 2 five-year extension options. The Lease Amendment expands allowable uses of the property to include the new proposed uses. The Amendment also incorporates the current policy for annual CPI rent adjustments. The United States accepted the proposed lease amendment before the Council for approval. The City Attorney has participated in negotiations. Approval is a policy decision for the Council. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 3.1.1.7 Encourage additional military facilities that upgrade Seward as a Morale Welfare and Recreation(MWR)destination. Strategic Plan: Recreation and Leisure: We provide diverse, year-round, indoor and outdoor recreational, educational, and cultural opportunities and facilities for residents and visitors of all ages and socioeconomic backgrounds. 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 187 XD Not applicable Attorney Review✓ Administration Recommendation X Yes X Adopt Resolution Not applicable Other: City Attorney Signature: 188 Sponsored by: Regis City of Seward,Alaska Resolution 2023-097 A Resolution of the City Council of Seward, Alaska Approving Lease Amendment No. 1 With The United States Of America Acting By and Through The Secretary Of The Army WHEREAS, the City of Seward leased Tract A, Marina Subdivision Seward Resort Addition,Plat No. 2010-10, Seward Recording District, Third Judicial District State of Alaska("the Property")to the United States of America acting by and through the Secretary of the Army ("the Government")pursuant to terms set forth in Lease No.DACA85-5-1100064 effective September 30, 2011 ("the Lease"); and WHEREAS, City of Seward Resolution 2011-061 approved the Lease; and WHEREAS, allowable uses of the Property under the terms of the Lease are limited to the construction,maintenance and operation of a marine dispatch building for purposes related to the use of Government's vessels moored at the City's Small Boat Harbor; and WHEREAS, the Government intends to cease use of vessels moored at the City's small boat harbor; and WHEREAS, the Government wishes to continue to use the Property after it ceases use of vessels moored at the City's small boat harbor for recreational purposes for military personnel specifically as a workout facility and to provide overnight lodging for military personnel on a short term basis ("the Proposed New Use"); and WHEREAS,the Proposed New Use is not permitted under the terms of the Lease and; WHEREAS,Article 34 of the Lease requires that any amendment to the Lease be in writing and signed by the City and the Lessee; and WHEREAS, the Government and the City negotiated an Amendment to the Lease which will allow the Proposed New Use and also implement city policy regarding interim rent adjustments; and WHEREAS,the City of Seward has long supported the men and women who serve in the armed forces of the United States by allowing use of City property to provide recreational opportunities for those who serve our country. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF SEWARD, ALASKA that: Section 1. The Seward City Council approves Lease Amendment No. 1 to the Lease. Section 2. The Seward City Council finds that the essential terms and conditions of Lease 189 City of Seward,Alaska Resolution 2023-097 Amendment No. 1 are in the public interest. Section 3. This resolution shall take effect 30 days from the date of posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward this 28th day of August, 2023. The City of Seward,Alaska Sue McClure, Mayor Ayes: Noes: Absent: Abstain: Attest: Kris Peck, City Clerk (City Seal) 190 Jodi Kurtz From: Williams,Jewel A NAF USARMY IMCOM PACIFIC (USA) <jewel.a.williams4.naf@army.mil> Sent: Friday,June 23, 2023 9:32 AM To: Harbor Master Subject: Lease Amendment Request for Harbor Property Good Morning-As you know, we are no longer running our charter boats and will most likely begin the process of selling them this fall. I would like to propose an amendment to our lease for the harbor building located at the top of X-Float. We would like to turn the downstairs of the building into a workout facility for our guests (our guests only, would not be open to anyone else) and the upstairs I would like to turn into a nightly rental. I spoke with Mr. Bickling at planning and zoning and he let me know that I would need to go through the harbormaster for an amendment to our current lease since it is harbor property but that it should be a fairly easy process. Please let me know what I need to do on my end to begin the process of amending the lease. I appreciate your help in this matter. Thank You Jewel A Williams General Manager Seward Resort 907-224-2659 X3170 https://linkprotect.cudasvc.com/url?a=https%fl3a%2f%2fwww.sewardresort.com&c=E,1,NxhcGyuzG7LUCNSKG KOfSNV7vT OJdxzYNIGMfblgVOIGGPhB6L2LAuau M NGPzgnJV6gRFSJ i5LnSBO455OyHm ICQ7 N2mgEjyDjG2cOEez9hlrH7POcOtrZ4,&typ 0=1 1 191 LEASE AMENDMENT NO. 1 (Lease No. RE- DACA85-5-1100064- 2011 Lease Agreement between the City of Seward and the United States Army for Tract A, Marina Subdivision Seward Resort Addition) THE CITY OF SEWARD,ALASKA, a home rule municipal corporation, organized and existing under the laws of the State of Alaska, hereinafter referred to as "CITY", and the UNITED STATES OF AMERICA, acting by and through the Secretary of the Army, P.O. Box 6898, JBER, Alaska 99506-0898 hereinafter referred to as "GOVERNMENT",hereby agree that the Lease for Tract A,Marina Subdivision Seward Resort Addition, Plat No. 2010-10, Seward Recording District, Third Judicial District State of Alaska effective September 30, 2011, ("the Lease") is hereby amended as set forth below: 1. The first WHEREAS clause of the Lease, beginning "WHEREAS, the Government desires to lease land" is hereby amended to read as follows: WHEREAS, the GOVERNMENT desires to lease land from the CITY for the construction, maintenance and operation of a marine dispatch building, or a workout facility and nightly lodging for military personnel; and 2. Article 1.1 PREMISES is hereby amended to read as follows: 1.1 PREMISES CITY hereby Leases to GOVERNMENT the following described premises: Approximately 2,546 gross square feet, more or less, of land (the "Premises ") described as: Tract A, Marina Subdivision Seward Resort Addition, according to Plat 2010 -10 recorded in the Seward Recording District, Third Judicial District, State of Alaska, more particularly shown on Exhibits A and B, attached hereto and made a part hereof. Premises will be used for the construction, maintenance and operation of a marine dispatch building for purposes related to the use of GOVERNMENT'S vessels moored at the CITY'S Small Boat Harbor and as a workout facility and nightly lodging for military personnel. 3. Article 3. RENTAL RATE- is amended by adding a new section 3.4.5 to read as follows: 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 1 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 LEASE AMENDMENT NO.1 Page 1 192 discretion, to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 4. Article 4.1 USE OF PREMISES is amended to read as follows: 4.1 USE OF PREMISES. CITY has limited land available for Lease. Use of the Premises by GOVERNMENT for a marine dispatch building, and uses necessary and incidental thereto, including use as a workout facility and for nightly lodging for military personnel has been determined by the City Council of the City of Seward to be in the public interest. 5. Article 4.2(f) is amended to read as follows: f. GOVERNMENT shall not allow any camping on the Premises. This Amendment No. 1 is effective as of September 30, 2023. In all other respects, the Lease is to remain unchanged and in full force between the undersigned parties. IN WITNESS WHEREOF,the parties hereto have executed this document, and it is effective this_day of , 2023. CITY: GOVERNMENT: CITY OF SEWARD, ALASKA Norm Regis, Acting City Manager UNITED STATES OF AMERICA Acting by and through the SECRETARY OF THE ARMY Thomas M. Kretzschmar Date: Chief of Real Estate Real Estate Contracting Officer LEASE AMENDMENT NO.1 Page 2 193 U.S. Army Engineer District, Alaska Date: ATTEST: Kris Peck City Clerk (City Seal) STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2023, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Norm Regis, known to me and to me known to be the Acting City Manager for the City of Seward, Alaska, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2023, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Thomas M. Kretzschmar, known to me to be a Real Estate Contracting Officer for the U.S. Army Corps of Engineers, Alaska District, and authorized to execute documents on its behalf and is the individual named in and who executed the foregoing document on behalf of the United States of America for the uses and purposes therein set forth. LEASE AMENDMENT NO.1 Page 3 194 WITNESS my hand and notarial seal the day and year first hereinabove written. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: Return to: Harbormaster City of Seward PO Box 167 Seward,AK 99664 LEASE AMENDMENT NO.1 Page 4 195 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and UNITED STATES OF AMERICA Acting by and through the SECRETARY OF THE ARMY City of Seward Resolution No. US Army Corps of Engineers Lease No.DACA855-1100064 Effective 30 September 2011 City of Seward: / United States of America / 1 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page TABLE OF CONTENTS ARTICLEI—LEASED LAND..............................................................................................................................I 1.1 PREMISES...................................................................................................................................................1 1.2 COVENANT OF QUIET ENJOYMENT....................................................................................................7 1.3 RESERVED. ................................................................................................................................................1 1.4 PROPERTYACCEPTED "AS-IS':............................................................................................................1 1.5 PERMITS.....................................................................................................................................................1 1.6 PLATTING...................................................................................................................................................2 ARTICLE2—LEASE TERM................................................................................................................................2 2.1 LEASE TERM..............................................................................................................................................2 2.2 RENEWAL OPTION.................................................................................................:.................................2 2.3 TERMINATION..........................................................................................................................................3 ARTICLE 3—RENTAL RATE.. .3 3.1 RENTAL.......................................................................................................................................................3 3.2 CENTRAL CONTRACTOR REGISTRATION(CCR). ............................................................................3 3.3 ELECTRONIC FUNDS TRANSFER PAYMENT....................................................................................4 3.4 RENTAL ADJUSTMENTS.........................................................................................................................5 3.5 PROCEDURE FOR RENTAL ADJUSTMENT.........................................................................................S 3.6 EFFECT OF LATE APPRAISAL BY CITY..............................................................................................6 3.7 APPRAISAL BY GOVERNMENT..............................................................................................................6 3.8 EFFECTIVE DATE OF ADJUSTED RENTAL RATE............................................................................7 3.9 PROMPT PAYMENT. ...............................................................................................................................7 ARTICLE4—USE OF PREMISES............................................................. ......................................................8 4.1 USE OF PREMISES...................................................................................................................................8 4.2 OBLIGATIONS OF GOVERNMENT........................................................................................................8 4.3 OBLIGATIONS OF CITY...........................................................................................................................9 4.4 DAMAGES..................................................................................................................................................11 4.5 NO PREFERENTIAL RIGHTS TO USE PUBLIC FACILITIES..........................................................11 4.6 ADEQUACY OF PUBLIC FACILITIES................................................................................................11 4.7 RESERVED...............................................................................................................................................11 4.8 TIME FOR PAYMENT OF UTILITIES.................................................................................................11 City of Seward: / United States of America M 46 a&7 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page ii 4.9 OTHER USES............................................................................................................................................11 4.10 MUTUALITY OF OBLIGATION. ...........................................................................................................11 ARTICLE 5-UTILITIES AND RIGHTS OF ACCESS...................................................................................12 5.1 UTILITIES.................................................................................................................................................12 5.2 WARRANTY...............................................................................................................................................12 5.3 THIRD PARTYIMPROVEMENTS.........................................................................................................12 5.4 EASEMENTS............................................................................................................................................13 ARTICLE 6-CONSTRUCTION BY GOVERNMENT....................................................................................13 6.1 IMPROVEMENTS ON PREMISES.........................................................................................................13 6.2 CITYREVIEW OF CONSTRUCTION....................................................................................................14 ARTICLE 7-RETURN OF LEASED LAND/SITE..........................................................................................14 7.1 RETURN OF PREMISES IN ORIGINAL CONDITION.......................................................................14 2 RETURN OF PREMISES INDIFFERENT CONDITION....................................................................14 ARTICLE8-FORCE MAJEURE......................................................................................................................14 ARTICLE 9-GOVERNMENT'S ACTS OF DEFAULT..................................................................................15 ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE..............................................................................16 10.1 RIGHTS OF CITY............................................................................................:........................................16 10.2 SURRENDER OFPREMISES.................................................................................................................16 10.3 NO TERMINATION OF OBLIGATION TO PERFORM.......................................................................16 10.4 RIGHTS CUMULATIVE..........................................................................................................................16 10.5 NO WAIVER OF RIGHT...................................................................................... . ..............................16 ARTICLE 11—DEFAULT BY CITY DURING THE TERM..........................................................................16 11.1.DEFAULTBYCITY CITY................................................................................................................................. 11.2 TERMINATIONFOR DEFAULT............................................................................................................17 ARTICLE 12-TITLE TO IMPROVEMENTS INSTALLED BY GOVERNMENT.....................................17 12.1 REAL PROPERTYIMPROVEMENTS...................................................................................................17 12.2 REMOVAL OF PERMANENT REAL PROPERTY IMPROVEMENTS...............:...............................17 12.3 PERSONAL PROPERTY..........................................................................................................................17 City of Seward: / United States of America�/ 198D,(o City of Seward Resolution No. Lease No.DACA85-5-1100064 Page iii ARTICLE 13-ASSIGNMENT OR SUBLEASE................................................................................................17 13.1 ASSIGNMENT OF LEASE OR SUBLEASING......................................................................................17 13.2 ASSIGNMENT OF LEASE FOR SECURITY.........................................................................................17 13.3.ASSIGNMENT TO AFFILIATE..............................................................................................................18 ARTICLE14-INSURANCE...............................................................................................................................18 ARTICLE15-CONDEMNATION.....................................................................................................................18 15.1 CLAIMS.....................................................................................................................................................18 I5.2 TERMINATION........................................................................................................................................19 ARTICLE16—DISPUTES...................................................................................................................................19 16.1 CONTRACT DISPUTES ACT...................... .......................................................................................19 16.2 CLAIMS.....................................................................................................................................................19 16.3 DATE OF DECISION.. 20 16.4 ALTERNATE DISPUTE RESOLUTION. ARBITRATION..................................................................20 16.5 INTEREST PAYMENT.............................................................................................................................21 16.6 PERFORMANCE OF LEASE..................................................................................................................21 ARTICLE 17-MAINTENANCE AND REPAIRS............................................................................................21 17.1 NORMAL MAINTENANCE.....................................................................................................................21 17.2 SAFETYISSUES.......................................................................................................................................21 17.3 COST OF REPAIRS.................................................................................................................................:22 17.4 FIRE AND CASUALTYDAMAGE..........................................................................................................22 ARTICLE 18-ENVIRONMENTAL CONCERNS...........................................................................................22 18.1 HAZARDOUS MATERIALS....................................................................................................................22 18.2 PERMITS AND REPORTING...................................................................:..............................................24 ARTICLE 19-ESTOPPEL CERTIFICATES/STATEMENT OF LEASE.....................................................24 19.1 REQUESTS FOR STATEMENTS OF LEASE.......................................................................................24 19.2 CONDITIONS FOR STATEMENTS OF LEASE...................................................................................25 ARTICLE 20-CONDITIONS AND COVENANTS..........................................................................................25 ARTICLE 21 -NO WAIVER OF BREACH.......................................................................................................25 City of Seward: / United States of America I�{ 199, City of Seward Resolution No. Lease No.DACA85-5-1100064 Page iv ARTICLE 22-TIME OF THE ESSENCE.........................................................................................................25 ARTICLE 23-COMPUTATION OF TIME......................................................................................................25 ARTICLE24—SUCCESSORS BOUND.............................................................................................................25 ARTICLE 25—INTEGRATED AGREEMENT................................................................................................26 ARTICLE26-GOVERNING LAW....................................................................................................................26 ARTICLE 27-PARTIAL INVALIDITY............................................................................................................26 ARTICLE 28-RELATIONSHIP OF PARTIES................................................................................................26 ARTICLE 29-EXAMINATION OF RECORDS..............................................................................................26 ARTICLE 30-GRATUITIES TO GOVERNMENT EMPLOYEES...............................................................26 30.1 GOVERNMENT MAY TERMINATE......................................................................................................26 30.2 PURSUIT OF REMEDIES.......................................................................................................................27 30.3 RIGHTS AND REMEDIES NOT EXCL USIVE......................................................................................27 ARTICLE 31 -OFFICIALS NOT TO BENEFIT...............................................................................................27 ARTICLE32-INTERPRETATION....................................................................................................................27 ARTICLE33-CAPTIONS...................................................................................................................................27 ARTICLE34-AMENDMENT.............................................................................................................................27 ARTICLE35-NOTICES.....................................................................................................................................27 ARTICLE 36—ATTACHMENTS TO LEASE..................................................................................................28 City of Seward: / United States of America 200 D% City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 1 LEASE AGREEMENT THIS Lease, made and entered into this date by and between the CITY OF SEWARD, a municipal corporation located in the Kenai Peninsula Borough, State of Alaska,whose address is P.O.Box 167, Seward, Alaska 99664, and whose interest in the property hereinafter described is that of owner(as certified), for itself, for its heirs, executors, administrators, successors, and assigns, hereinafter called the CITY, and the UNITED STATES OF AMERICA, acting by and through the Secretary of the Army, whose address is U.S. Army Engineer District-Alaska,Real Estate Division (CEPOA-RE), P.O.Box 6898,JBER,Alaska 99506-0898,hereinafter called the GOVERNMENT. WHEREAS, the GOVERNMENT desires to lease land from the CITY for the construction, maintenance and operation of a marine dispatch building;and WHEREAS, the Seward Planning& Zoning commission has approved disposal by lease of uplands owned by the CITY in the Seward Small Boat Harbor;and WHEREAS, the City Council of CITY has determined that lease of the Premises to the GOVERNMENT for the purposes described herein would be in the public interest; NOW THEREFORE, the parties, for the consideration of the premises and the consideration hereinafter mentioned, and the mutual benefits to be derived therefrom,hereto covenant and agree as follows: ARTICLE 1—L,F.ASED LAND Ll PREMISES. CITY hereby Leases to GOVERNMENT the following described premises: Approximately 2,546 gross square feet, more or less, of land (the "Premises") described as: Tract A, Marina Subdivision Seward Resort Addition, according to Plat 2010-10 recorded in the Seward Recording District, Third Judicial District, State of Alaska, more particularly shown on Exhibits A and B, attached hereto and made a part hereof. Premises will be used for the construction, maintenance and operation of a marine dispatch building for purposes related to the use of GOVERNMENT'S vessels moored at the CITY'S Small Boat Harbor. 1.2 COVENANT OF QUIET ENJOYMENT. Subject to the encumbrances as of the date hereof,any reasonable restrictions imposed on the Premises as part of recording of a plat by CITY, and the provisions of this Lease, CITY hereby covenants and warrants that it is unaware of any prior conflicting use of the Premises that would adversely affect GOVERNMENT'S intended use of the subject parcel. L3 RESERVED. 1.4 PROPERTYACCEPTED "AS IS". GOVERNMENT acknowledges that it has inspected the Premises and accepts the same"as- is" and without reliance on any expressed or implied representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Premises in Article 1.1 or Exhibit A hereto. 1.5 PERMITS. GOVERNMENT, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Premises. CITY may from time to time, upon request of GOVERNMENT, execute such documents, petitions, applications and authorizations as may City of Seward: / United States of America tk4 V--/ City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 2 be necessary, as the underlying fee owner, to file with an agency or public body responsible therefore, 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 GOVERNMENT permitted on the Premises by the terms of this Lease. However,nothing in this section shall be construed as requiring CITY to support or to 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, GOVERNMENT shall follow all City of Seward procedures,the same as any other applicant making similar requests of the City of Seward,according to the Charter,ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this sections imposes any duty or responsibility on CITY to assist GOVERNMENT 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. L 6 PLATTING. In the event CITY elects to replat, CITY agrees to include the Premises in such replat in accordance with reasonable requests by GOVERNMENT. If GOVERNMENT requests a r-eplat of the Pr-emises prior-to that time,CITY shall assist GOVERNMENT in the pmpafatien and filing of the replat, the costs of such assistance shall be borne by the GOVERNMENT. GOVERNMENT agrees to 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 Premises or the plat of CITY-owned real property adjacent to the Premises. ARTICLE 2—LEASE TERM 2.1 LEASE TERM. a. This Lease is entered into in accordance with Federal Management Regulation, Subchapter C—Real Property, Part 102-73—Real Estate Acquisition, Subpart B— Acquisition by Lease, Sections 102-73.145, 102-73.150, and 102-73.155 and in accordance with CITY'S authorization Resolution No. 2011 Upon effectiveness of the resolution and upon execution of this Lease by CITY and GOVERNMENT, the Lease Term shall commence on September 30, 2011 (the "Effective Date"), subject to termination and renewal rights as may be hereinafter set forth. The Lease Term shall run for approximately 20 years from the Effective Date, ending at midnight on September 29,2031. b. GOVERNMENT'S obligation and legal liability for performance of this Lease beyond September 30, 2012, is contingent upon the availability of annually appropriated funds. Nothing in this Lease shall constitute, or be deemed to constitute, an obligation of future appropriations by the United States or considered as implying that the Congress will appropriate additional funds. 2.2 RENEWAL OPTION. The Government shall have the right to renew this lease for an additional five(5)year period, under the same terms and conditions provided herein by providing written notice to the Lessor of the Government's renewal at least 90 days prior to the expiration of the current term,provided that this lease shall in no event extend beyond September 29,2036. City of Seward: / United States of America 20,'2� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 3 2.3 TERMINATION. GOVERNMENT may terminate this Lease in whole or in part at any time after September 30, 2012 by giving at least ninety (90) days' notice in writing to CITY; and no rental shall accrue after the effective date of termination. ARTICLE 3—RENTAL RATE 3.1 RENTAL. GOVERNMENT shall pay CITY annual rent of$2,160 (Two thousand one hundred sixty dollars and zero cents) at the rate of$540 (Five hundred forty dollars and zero cents) per quarter in arrears commencing on the Effective Date. Rent for a lesser period shall be prorated. Payment shall be made without demand by electronic funds transfer(EFT—direct deposit) payable to: City of Seward, Kenai Peninsula Borough, State of Alaska. Payments shall be made by: U.S.Army Corps of Engineers Finance Center(CEFC-AO),6830 Integrity Drive, Millington, TN 38054-5045. Billing inquires or invoices should be directed to the Finance and Accounting Officer, U.S. Army Engineer District, Alaska, P.O. Box 6898, JBER,Alaska 99506-0898. 3.2 CENTRAL CONTRACTOR REGISTRATION(CCR). a. In order to do business with the United States of America, CITY acknowledges the requirement that CITY must be registaed with Dun and Bradstreet and in the CCR database prior to award, during performance, and through final payment of any contract entered into with GOVERNMENT. To remain active, insuring prompt payment of rent, CITY is required to update, or renew, its registration annually. Rental payments cannot be processed to CITY without an active CCR. No change of ownership of the Leased premises will be recognized by GOVERNMENT until the new owner registers in the CCR system. b. CITY shall enter in the appropriate block, on the GSA Form 3518, entitled Representations and Certifications, the legal entity's name and address, followed by the DUNS or DUNS+4 number that identifies CITY's name and address exactly as stated in the Lease. The DUNS number will be used by GOVERNMENT to verify that CITY is registered in the CCR database. c. If CITY does not have a DUNS number,it shall contact D&B directly to obtain one. (1) CITY may obtain a DUNS number by calling D&B at 1-866-705-5711 or via the Internet at http://www.dnb.com. (2) CITY should be prepared to provide the following information: (i) Company legal business. (ii) Tradestyle, doing business as, or other name by which your entity is commonly recognized. (iii) Company Physical Street Address, City, State,and ZIP Code. (iv) Company Mailing Address, City, State and ZIP Code (if separate from physical). (v) Company Telephone Number. (vi) Date the company was started. City of Seward: / United States of AmericaTUA& -9n3 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 4 (vii) Number of employees at your location. (viii) Chief executive officer/key manager. (ix) Line of business(industry). (x) Company Headquarters name and address (reporting relationship within your entity). d. If CITY does not become registered in the CCR database in the time prescribed by the Government, rental payments to CITY will be delayed until such registration is completed. e. Processing time,which normally takes 48 hours,should be taken into consideration when registering. CITY is responsible for the accuracy and completeness of the data within the CCR database, and for any liability resulting from GOVERNMENT'S reliance on inaccurate or incomplete data. To remain registered in the CCR database after the initial registration, CITY is required to review and update on an annual basis from the date of initial registration or subsequent updates its information in the CCR database to ensure it is current, accurate and complete. Updating information in the CCR does not alter the terms and conditions of this Lease and is not a substitute for a properly executed contractual document. f Change of legal-business Hemp (1) If CITY has legally changed its business name, "doing business as" name, or division name(whichever is shown on the Lease),or has transferred the assets used in performing the contract, CITY shall comply with the requirements of Subpart 42.12 of the Federal Acquisition Regulations (FAR) and provide the responsible Government Contracting Officer a fully revised and initialed/signed GSA Form 3518, entitled Representations and Certifications,along with written notification of its intention to (A) change the name in the CCR database; and (B) provide the Government with sufficient documentation to verify and confirm the legally changed name or change in ownership. (2) If CITY fails to comply with the requirements of paragraph g.(1) of this clause, or fails to perform the agreement at paragraph g.(1)(B) of this clause, and, in the absence of.a properly executed novation or change-of-name agreement, the CCR information that shows CITY to be other than CITY indicated in the Lease will be considered to be incorrect information within the meaning of the "Suspension of Payment"paragraph of the electronic funds transfer(EFT)clause of this contract. (3) The Lessor shall not change the name or address for EFT payments or manual payments, as appropriate, in the CCR record to reflect an assignee for the purpose of assignment of claims. Assignees shall be separately registered in the CCR database. Information provided to the Lessor's CCR record that indicates payments, including those made by EFT, to an ultimate recipient other than that Lessor will be considered to be incorrect information. g. CITY may obtain information on registration and annual confirmation requirements via the internet at http://www.ecr.gov or by calling 1-888-227-2423,or 269-961-5757. 3.3 ELECTRONIC FUNDS TRANSFER PAYMENT. City of Seward: / United States of America City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 5 a. GOVERNMENT will make payments under this Lease by electronic funds transfer (EFT),unless otherwise waived(for hardship or tracking reasons of CITY). CITY must, no later than 30 days before the first payment: (1) Designate a financial institution for receipt of EFT payments. (2) Submit this designation to GOVERNMENT or other GOVERNMENT official, as directed. b. CITY must provide the following information: (1) The American Bankers Association 9-digit identifying number for Automated Clearing House (ACH) transfers of the financing institution receiving payment if the institution has access to the Federal Reserve Communications System. (2) Number of account to which funds is to be deposited. (3) Type of depositor account("C"for checking, "S"for savings). (4) If CITY is a new enrollee to the EFT system, CITY must complete and submit UFC-DISB-4 (Direct Deposit Authorization Form), before payment can be processed. c. If CITY, during the performance of this contract, elects to designate a different financial institution for the receipt of any payment, the appropriate GQVMNMF-Na official must receive notice of such change and the required information specified above no later than 30 days before the date such change is to become effective. d. The documents fiunishing the information required in this clause must be dated and contain the: (1) Signature, title, and telephone number of CITY or CITY's authorized representative. (2) CITY's name. (3) Lease number. e. CITY's failure to properly designate a financial institution or to provide appropriate payee bank account information may delay payments of amounts otherwise properly due. 3.4 RENTAL ADJUSTMENTS. The annual rental payment shall be adjusted on July 1,2015,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 of the Premises at the highest and best use of the Premises. The highest and best use of the Premises shall be determined without regard to GOVERNMENT'S intended or actual use of the Premises unless that use is coincidentally the highest and best use of the Premises. CITY shall complete such appraisal and deliver a copy of the appraisal report to GOVERNMENT not less than ninety(90)days before each Rental Adjustment Date. 3.5 PROCEDURE FOR RENTAL ADJUSTMENT. a. 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 Premises in accordance with this Article 3, exclusive of improvements placed thereon by City of Seward: / United States of America n(iL/ �05 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 6 GOVERNMENT 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 GOVERNMENT not less than ninety(90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Premises 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 GOVERNMENT objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, GOVERNMENT shall give written notice to CITY of its objection within thirty(30)days of receipt of the appraiser's report, and GOVERNMENT shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at GOVERNMENT'S expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. b. If GOVERNMENT'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 GOVERNMENT'S appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent(20%), then,unless CITY and GOVERNMENT agree on a rate themselves, the adjusted annual rental rate of the Premises shall be determined in accordance with the Contract Disputes Act of 1978, or if both parties agree,by arbitration as provided for in Article 16 of this Lease. 3.6 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 GOVERNMENT ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to GOVERNMENT 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 GOVERNMENT. 3.7 APPRAISAL BY GOVERNMENT. 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 GOVERNMENT by the Rental Adjustment Date, GOVERNMENT may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at GOVERNMENT'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, GOVERNMENT must notify CITY in writing within thirty(30) days following the Rental Adjustment Date of GOVERNMENT'S election to obtain an appraisal. If CITY objects to GOVERNMENT'S appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to GOVERNMENT 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 GOVERNMENT'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from GOVERNMENT'S appraisal by more than twenty percent(20%), then,unless CITY and GOVERNMENT agree on a rate themselves, the adjusted annual rental rate of the Premises shall be determined in City of Seward: / United States of America INL/ City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 7 accordance with the Contract Disputes Act of 1978, or if both parties agree,by arbitration as provided for in Article 16 of this Lease. 3.8 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 GOVERNMENT 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 GOVERNMENT,the adjusted rental rate shall be effective beginning with the next rental payment due date immediately following the date CITY delivers the appraisal report to GOVERNMENT. Notwithstanding the above, the exercise by either CITY or GOVERNMENT of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone GOVERNMENT's obligation to pay rent at the rate established by CITY. GOVERNMENT 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 GOVERNMENT, to the Rental Adjustment Date. In either case, the adjusted annual rental rate and effective date shall be memorialized by a supplemental agreement to this Lease. 3.9 PROMPT PAYMENT. a. The GOVERNMENT will make payments under the terms and conditions specified in this Article 3, and in accordance with the Prompt Payment Act (31 U.S.C. §3901). Payment.shall be considered as being made on the day a check is dated or an electronic funds transfer is made. All days referred to in this clause are calendar days, unless otherwise specified. b. Payment due date: Rent shall be paid quarterly in arrears and will be due on the first workday of each quarter, and only as provided for by the Lease. c. In the event there should be payments other than rent, the due date for making such payments shall be the later of the following two events: (1) The 30th day after the designated billing office has received a proper invoice from CITY. (2) The 30th day'after GOVERNMENT acceptance of the work or service. However,if the designated billing office fails to annotate the invoice with the actual date of receipt, the invoice payment due date shall be deemed to be the 30th day after CITY's invoice is dated, provided a proper invoice is received and there is no disagreement over quantity,quality, or CITY compliance with contract requirements. c. Invoice and inspection requirements for payments other than rent. (1) CITY shall prepare and submit an invoice to the designated billing office after completion of the work or service. A proper invoice shall include the following items: (i) Name and address of CITY. (ii) Invoice date. City of Seward: / United States of America��_/ City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 8 (iii) Lease number. (iv) GOVERNMENT's order number or other authorization. (v) Description,price,and quantity of work or services delivered. (vi) Name and address of CITY official to whom payment is to be sent(must be the same as that in the remittance address in the Lease or the order). (vii) Name (where practicable), title, phone number, and mailing address of person to be notified in the event of a defective invoice. (2) GOVERNMENT will inspect and determine the acceptability of the work performed or services delivered within 7 days after the receipt of a proper invoice or notification of completion of the work or services unless a different period is specified at the time the order is placed. If actual acceptance occurs later, for the purpose of determining the payment due date and calculation of interest, acceptance will be deemed to occur on the last day of the 7-day inspection period. If the work or service is rejected for failure to conform to the technical requirements of the contract,the 7 days will be counted beginning with receipt of a new invoice or notification. In either case, CITY is not entitled to any payment or interest lunless actual acceptance by GOVERNMENT occurs. do Interesa Pe ality. (lAn interest penalty shall be paid automatically by GOVERNMENT, without request from CITY, if payment is not made by the due date. (2) Claims involving disputes,and any interest that may be payable,will be resolved in accordance with the Contract Disputes Act of 1978(41 U.S.C. §7101 et seq).. ARTICLE 4—USE OF PREMISES 4.1 USE OF PREMISES. CITY has limited land available for Lease. Use of the Premises by GOVERNMENT for a marine dispatch building, and uses necessary and incidental thereto, has been determined by the City Council of the City of Seward to be in the public interest. 4.2 OBLIGATIONS OF GOVERNMENT. GOVERNMENT may use the Premises only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a. The Premises shall be completely cleaned and restored to its original condition upon termination of this Lease that is, the condition existing prior to any operations by GOVERNMENT under this or any prior agreement, or in better condition, subject to the exceptions to restoration stated in Article 7 of this Lease. b. GOVERNMENT agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Premises except as permitted in Article 18 of this Lease. c. GOVERNMENT shall not use the Premises in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d. GOVERNMENT shall use the Premises only for the uses described in Section 4.1. A marine dispatch building shall be constructed and operated by GOVERNMENT on the Premises by September 30,2013. City of Seward: / United States of America ' 'NKv 20Sk City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 9 e. A site plan, attached as Exhibit B, has been submitted and approved by CITY. Any changes to this site require CITY approval,through the City Manager,prior to additional construction. GOVERNMENT's failure to obtain CITY approval of any changes to the site development plan or GOVERNMENT's failure to install the improvements according to the site development plan shall be a GOVERNMENT Act of Default under this Lease. GOVERNMENT shall pay for installation of all utilities in accordance with Article 5 of this Lease. f. GOVERNMENT shall not allow any camping or overnight lodging on the Premises. g. GOVERNMENT shall,at all times,maintain its use and operations within the boundaries of the Premises. There is no parking allowed near the Premises other than paid permit parking in designated areas. 4.3 OBLIGATIONS OF CITY. a. Subordination,Nondisturbance and Attornment. (1) CITY warrants that it holds such title to or other interest'in the premises and other property as is necessary to GOVERNMENT's access to the premises and full use and enjoyment thereof in accordance with the provisions of this Lease. GOVERNMENT agrees,in consideration of the warranties and conditions set forth in this clause, that this Lease is subject and subordinate to any and all recorded mortgages,deeds of trust and other liens now or hereafter existing or imposed upon the premises, and to any renewal, modification or extension thereof. It is the intention of the parties that this provision shall be self-operative and that no further instrument shall be required to effect the present or subsequent subordination of this Lease. GOVERNMENT agrees, however, within twenty (20) business days next following GOVERNMENT's receipt of a written demand, to execute such instruments as CITY may reasonably request to evidence further the subordination of this Lease to any existing or future mortgage, deed of trust or other security interest pertaining to the premises, and to any water, sewer or access easement necessary or desirable to serve the premises or adjoining property owned in whole or in part by CITY if such easement does not interfere with the full enjoyment of any right granted GOVERNMENT under this Lease. (2) No such subordination, to either existing or future mortgages, deeds of trust or other lien or security instrument shall operate to affect adversely any right of GOVERNMENT under this Lease so long as GOVERNMENT is not in default under this Lease. CITY will include in any future mortgage, deed of trust or other security instrument to which this Lease becomes subordinate, or in a separate nondisturbance agreement,a provision to the foregoing effect. CITY warrants that the holders of all notes or other obligations secured by existing mortgages,deeds of trust or other security instruments have consented to the provisions of this clause, and agrees to provide true copies of all such consents to GOVERNMENT promptly upon demand. (3) In the event of any sale of the premises or any portion thereof by foreclosure of the lien of any such mortgage,deed of trust or other security instrument, or the giving of a deed in lieu of foreclosure, GOVERNMENT will be deemed to have attorned to any purchaser, purchasers, transferee or transferees of the premises or any portion thereof and its or their successors and assigns, and any such purchasers and transferees will be deemed to have assumed all obligations of CITY under this City of Seward: / United States of America INIC/ .,I9 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 10 Lease, so as to establish direct privity of estate and contract between GOVERNMENT and such purchasers or transferees, with the same force, effect and relative priority in time and right as if the Lease had initially been entered into between such purchasers or transferees and GOVERNMENT; provided, fiuher, that GOVERNMENT and such purchasers or transferees shall, with reasonable promptness following any such sale or deed delivery in lieu of foreclosure,execute all such revisions to this Lease, or other writings,as shall be necessary to document the foregoing relationship. (4) None of the foregoing provisions may be deemed or construed to imply a waiver of GOVERNMENT's rights.as a sovereign. b. Change of Ownership: (1) If, during the term of this Lease, including any renewals or extensions, title to the Premises is transferred to another party either by sale, foreclosure, condemnation, assignment, or other transaction, CITY (transferor) shall promptly notify GOVERNMENT of said transfer. The following information shall accompany such notification: (i) A copy of the deed or other appropriate instrument transferring title or sufficient interest to Lease to the Premises from the transferor to the new owner. n e new owners taxidentification or social security number. (iii) The new owner's DUNS number and verification of CCR registration. (2) The foregoing information must be received not later than twenty (20) days after the effective date of transfer of title. In any instance, failure to submit the documentation required for a transfer of title will result in a suspension of rental payments until such time as all documentation is received by GOVERNMENT. (3) When the title to Premises leased to GOVERNMENT is transferred, a supplemental agreement shall be entered into by the old and new owners and GOVERNMENT to reflect such change of ownership. c. Assignment of Claims. (1) CTTY, under the Assignment of Claims Act, as amended, 31 USC §3727, may assign its rights to be paid amounts due or to become due as a result of the performance of this Lease to a bank, trust company, or other financing institution, including any Federal lending agency.The assignee under such an assignment may thereafter further assign or reassign its right under the original assignment to any type of financing institution described in the preceding sentence. (2) Any assignment or reassignment authorized under the Act and this clause shall cover all unpaid amounts payable under this Lease,and Assignment of Claims,and shall not be made to more than one party, except that an assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in the financing of this Lease. (3) Subject to the applicable law and the ordinances of the City of Seward,CITY shall not furnish or disclose to any assignee under this Lease any classified document (including this Lease) or information related to work under this Lease, that has City of Seward: / United States of America lAI U, 21S ' City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 11 been clearly designated as classified in writing, until GOVERNMENT authorizes such action in writing. 4.4 DAMAGES. a. Any liability of GOVERNMENT for property damage,personal injury, or death shall be governed by the Federal Tort Claims Act (FICA), 28 U.S.C. §2671 et seq. GOVERNMENT shall not be liable for any loss, destruction or damages to the premises beyond the control and without the fault or negligence of GOVERNMENT,including but not restricted to, acts of nature,lightning, earthquakes,floods, or severe weather and acts of war or terrorism. b. Any requirement for the payment or obligation of funds by GOVERNMENT under this Lease shall be subject to the availability of appropriated funds, and no provision herein shall be interpreted to require obligation or payment of funds in violation of the Anti- Deficiency Act, 31 U.S.C. §1341. GOVERNMENT's liability under this clause may not exceed appropriations available for such payment and nothing contained in this Lease may be considered as implying that Congress will at a later date appropriate funds sufficient to meet deficiencies. The provisions of this clause are without prejudice to any rights CITY may have to make a claim under applicable laws for any other damages than provided herein. y c- am naCF9.n-a T—E4 E RIGHTS MUSE P UBLIG RA GZ&RM&. Except as provided in Section 4.1, this Lease does not grant to GOVERNMENT any exclusive rights to use any public port facilities. GOVERNMENT 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 GOVERNMENT shall not be entitled to any exclusive use. 4.6 ADEQUACY OF PUBLIC FACILITIES. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by GOVERNMENT, and GOVERNMENT has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by GOVERNMENT. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.7 RESERVED. 4.8 TIME FOR PAYMENT OF UTILITIES. GOVERNMENT will pay for utilities related to operations on the Premises including,but not limited to,water, sewer, electric, and waste disposal services,and GOVERNMENT's interest in this Lease and improvements thereon, if any, before such obligations become delinquent; provided that GOVERNMENT may, in good faith and before such delinquency, contest any such charge or assessment. 4.9 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 GOVERNMENT or who might be interested in leasing the Premises should this Lease be terminated for any reason. 4.10 MUTUALITY OF OBLIGATION. City of Seward: / United States of America 16 ZM City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 12 The obligations and covenants of CITY, and GOVERNMENT'S obligation to pay rent and other GOVERNMENT obligations and covenants, arising under or related to this Lease, are interdependent. Either party may,upon issuance of and delivery to the other party of a final decision regarding a claim against the other party, set off such claim, in whole or in part,as against any payment or payments then or thereafter due under this Lease.No set off pursuant to this clause shall constitute a breach of this Lease. ARTICLE 5-UTILITIES AND RIGHTS OF ACCESS 5.1 UTILITIES. GOVERNMENT,at GOVERNMENT's sole cost and expense,shall provide for the extension of public utilities to the Premises sufficient for GOVERNMENT's intended operations. In so doing, GOVERNMENT 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 GOVERNMENT, through consultation and review, in GOVERNMENT's planning and engineering of those improvements. All utilities will be located.and sized in accordance to the City of Seward'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 GOVERNMENT within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or other utility compatir, and may be used to serve other eustomers of GOVERNMENT's without payment of fees or reimbursement of construction cost to GOVERNMENT. 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 over-sizing shall be borne by CITY or other party. 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 over-sizing 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 over-sized material required by CITY or utility company. GOVERNMENT shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by GOVERNMENT with respect to any required permits for construction or operation of GOVERNMENT's facilities on the Premises,it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by GOVERNMENT. 5.2 WARRANTY. CITY certifies any utilities up to the property line of the Premises to be in good serviceable and operating condition. 5.3 THIRD-PARTY IMPROVEMENTS. a. At the request of GOVERNMENT, CITY shall, from time to time, execute and deliver, or join in execution and delivery of: such documents as are appropriate, necessary, or required to impose upon the Premises in accordance with the terms of this Lease covenants, conditions and restrictions providing for the granting of uses of the Premises, or any part thereof: the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress,or other like matters(herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Premises as a commercial unit subject,however,to the conditions that follow: City of Seward: / United States of America/ 2JR) City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 13 b. All such matters shall be limited to the Lease Term and shall terminate upon termination of this Lease for whatever reason. C. 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 therefore, and the cost and expense thereof shall be borne solely by GOVERNMENT. d. At the expiration of the Lease Term (including any extended period) thud-party improvements on the Premises other than portable equipment shall become the property of CITY without the payment of any compensation to GOVERNMENT. 5.4 EASEMENTS. In order to provide for the orderly development of the Premises 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 Premises. As additional consideration for this Lease, CITY and GOVERNMENT 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 dedications and similar rights do not unreasonably interfere with GOVERNMENT'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 GOVERNMENT by CITY need not be exclusive to GOVERNMENT. ARTICLE 6-CONSTRUCTION BY GOVERNMENT 6.1 IMPROVEMENTS ONPREMISES. GOVERNMENT shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build and/or replace buildings and other improvements on the Premises, subject to the following conditions: a. The cost of any construction,reconstruction,demolition,or of any changes,alterations or improvements,shall be borne and paid for by GOVERNMENT. b. The Premises shall at all times be kept free of mechanic's and material men's liens. c. GOVERNMENT 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 Premises prior to commencement of construction. d. GOVERNMENT is solely responsible for resurveying and locating improvements on the Premises in such manner so as not to violate building setback requirements or encroach into rights-of-ways or easements.On completion of any improvements, GOVERNMENT shall provide CITY a copy of an as-built survey depicting the improvements as completed.on the Premises. City of Seward: / United States of America / Z. k3 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 14 e. GOVERNMENT acknowledges that the Premises may be in a coastal high hazard area, and that construction in this area may be limited or restricted. f. CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by GOVERNMENT on the Premises. g. GOVERNMENT 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.No permanent construction is allowed in any easement. 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 GOVERNMENT's facilities on the Premises,by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require GOVERNMENT 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 or any obligation to do so in a particular way. GOVERNMENT 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. GOVERNMENT shall be solely responsible for completing all improvements according to GOVERNMENT's plans and specifications and shall bear-all fisk.,mspensib4lity, and liability for pr-eperly surveying the P-ra-MR-so-s'h-c-460M construction and to place all improvements on the Premises without encroaching upon any land, easements, rights-of-way, or setback requirements. GOVERNMENT shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7-RETURN OF LEASED LAND/SITE 7.1 RETURN OF PREMISES IN ORIGINAL CONDITION. Subject to the provisions of Article 12.1 herein, upon termination of this Lease for any reason, GOVERNMENT shall return the Premises to CITY in the same condition as at the commencement of this Lease,subject to normal,non-abusive use. The Premises shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during GOVERNMENT's operations or use of the Premises during this Lease. Prior to the expiration or termination of this Lease, or a reasonable time thereafter, GOVERNMENT shall restore the Premises to the same condition as that existing at the time of entering into the Lease. However, in accordance with Article 12 of this lease, GOVERNMENT shall retain the right to dispose of all permanent improvements placed on the land by sale or abandonment. 7.2 RETURN OF PREMISES INDIFFERENT CONDITION. Notwithstanding the provisions of Section 7.1 and 12.1 herein,upon termination of this Lease for any reason GOVERNMENT may return the Premises in a re-contoured or graded clean, safe, and stable condition different from its original condition provided CITY grants written approval of GOVERNMENT's plans for development of the Premises'contours,including its plans for material extraction and final grade. ARTICLE 8-FORCE MAJEURE City of Seward: / United States of America liAL/ 21 4�; City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 15 In the event either GOVERNMENT or CITY is delayed, without fault or negligence of the party, 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-GOVERNMENT'S ACTS OF DEFAULT Each of the following shall be a "GOVERNMENT 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: a. Failure by GOVERNMENT to pay promptly when due the rent required to be paid under this Lease,subject to the Prompt Payment Act as referenced in Article 3.9. b. Failure by GOVERNMENT to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this Lease for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to GOVERNMENT 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 GOVERNMENT within the applicable period and diligently pursued until the default is corrected. c. Reserved. d. GOVERNMENT's failure to comply with 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 GOVERNMENT' use of the Premises, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such non-compliance has been given by the agency charged with the enforcement of such laws, regulations or permits to GOVERNMENT; provided, however, if such non-compliance 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 GOVERNMENT within the applicable period and diligently pursued until the GOVERNMENT is in compliance. Furthermore, if GOVERNMENT shall contest such alleged non-compliance 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 GOVERNMENT. e. Failure of GOVERNMENT to construct and operate a marine dispatch building by September 30,2013. f. Failure of GOVERNMENT to maintain its operations within the Premises or to keep the public rights of way clear. g. Failure to promptly pay when due any user,wharfage,or other charges by City of Seward and associated with the Seward Small Boat Harbor. City of Seward: / United States of America �� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 16 h. Reserved. i. Use of the Premises,or any portion of the Premises,for camping or overnight lodging. ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE 10.1 RIGHTS OF CITY Whenever an act of default by GOVERNMENT shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights, to the extent that they are consistent with the Contract Disputes Act (41 U.S.C. §7101 et seq.)and Article 16 of this Lease: a. CITY may declare this Lease terminated; b. Recover all damages incurred by CITY by reason of GOVERNMENT's default or breach to the extent allowable under applicable law, including,but not limited to,the cost of recovering possession of the Premises,expenses of reletting including costs of necessary renovation and alteration of the Premises, and any real estate commissions actually paid. C. Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and ------- r-ecover-all-costs-and_expense_incurr_ed_b_y-CIT-Y-to-r-emoue_violating-impr-ouements._-.__._.—__..___ 10.2 SURRENDER OF PREMISES. If GOVERNMENT does not immediately surrender possession of the, Premises after termination by CITY or upon demand by CITY,CITY may forthwith enter into and upon and repossess the Premises and expel GOVERNMENT 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. 10.3 NO TERMINATION OF OBLIGATION TO PERFORM. No expiration or termination of this Lease shall expire or terminate any liability or obligation to perform of GOVERNMENT's which arose prior to the termination or expiration except insofar as otherwise agreed to in this Lease. 10.4 RIGHTS CUMULATIVE. 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. 10.5 NO WAIVER OF RIGHT. 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. ARTICLE 11-DEFAULT BY CITY DURING THE TERM City of Seward: / United States of AmericaTA�/ 211 j� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 17 11.1. DEFAULT BY CITY. Each of the following shall constitute a default by CITY under this Lease: a. Failure to perform any requirement of this Lease as and when required provided any such failure shall remain uncured for a period of thirty(30)days next following CITY's receipt of notice thereof from GOVERNMENT. b. Repeated and unexcused failure by CITY to comply with one or more requirements of this Lease shall constitute a default notwithstanding that one or all such failures shall have been timely cured pursuant to this clause. 11.2 TERMINATION FOR DEFAULT. If a defauli by CITY occurs, GOVERNMENT may, upon 30 days'notice to CITY,terminate this Lease. ARTICLE 12-TITLE TO IMPROVEMENTS INSTALLED BY GOVERNMENT 12.1 REAL PROPERTYIMPROVEMENTS. All improvements constructed by GOVERNMENT on the Premises, such as buildings, foundations, electric or other utilities, ditches, sewer lines, water lines, dikes or berms and similar improvements,shall remain the property of GOVERNMENT upon termination of this Lease for any reason,and GOVERNMENT shall retain the nght to dispose of any permanent ------ improvements by either sale or disposal.. 12.2 REMOVAL OFPERMANENTREALPROPERTYIMPROVEMENTS GOVERNMENT, upon termination of this Lease for any reason, shall not be required to remove or pay removal costs for any permanent real property improvements placed on the property by GOVERNMENT during the tern of the lease. However,nothing herein shall be interpreted to preclude any supplemental agreement for removal or payment of removal costs. 12.3 PERSONAL PROPERTY. Upon termination of this Lease for any reason other than default by GOVERNMENT, and subject to CITY's consent at such time, GOVERNMENT 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 Premises provided that GOVERNMENT shall repair any damages to the Premises caused by such removal. ARTICLE 13-ASSIGNMENT OR SUBLEASE 13.1 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 GOVERNMENT and CITY has granted the Lease in reliance upon the individual character and financial capability of GOVERNMENT. Therefore, GOVERNMENT shall not assign this Lease without CITY's prior written consent, in CITY's sole discretion. GOVERNMENT may not sublease all or any portion of the Premises or buildings or improvements located thereon. 13.2 ASSIGNMENT OF LEASE FOR SECURITY. City of Seward: / United States of America City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 18 Notwithstanding Section 12.1 above,GOVERNMENT may assign,encumber or mortgage its interest in this Lease or improvements on the Premises, by deed of trust or other security instrument, to an institutional lender ("Lender) for development of or operations on the Premises, provided that Lender shall be subject to all obligations of GOVERNMENT 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 GOVERNMENT under this Lease. Lender shall have the right (without being required to do so and without thereby assuming the obligations of GOVERNMENT 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 "GOVERNMENT 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 re-let the Premises 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 Article 10.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as GOVERNMENT or Lender remains in possession of the Premises and satisfies ---- -- --GOVERNMENT's-obligations-under-the-terms-ofthis-Lease.—Upon4oreclosure-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. 13.3. ASSIGNMENT TO AFFILL4TE. Notwithstanding Section 12.1 above, GOVERNMENT may assign this Lease to an affiliate of GOVERNMENT as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which GOVERNMENT maintains a substantial membership interest; provided, however,that GOVERNMENT's full faith and credit shall remain obligated under this Lease as though the assignment had not taken place. ARTICLE 14- INSURANCE Inasmuch as GOVERNMENT is a sovereign entity, it is self-insured; and as such, is not required to carry liability or any other type of commercial insurance. Any claim against the GOVERNMENT shall be submitted in accordance with the appropriate federal regulation befitting the nature of the claim. ARTICLE 15-CONDEMNATION 15.1 CLAIMS. If all or any part of the Premises is condemned for a public use by any government agency or other duly authorized entity, CITY and GOVERNMENT 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 GOVERNMENT 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 GOVERNMENT's Leasehold interest, CITY shall transmit to GOVERNMENT the amount of such specific damages so found,if any. City of Seward: / United States of America 21 E�t, City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 19 15.2 TERMINATION. If part but not all of the Premises is condemned for public use, GOVERNMENT shall make a good faith determination as to whether or not the taking of the part of the Premises designated for condemnation will prevent it from continuing to operate on. the Premises. If GOVERNMENT determines in good faith that the condemning of such part of the Premises will prevent it from continuing to operate on the Premises, GOVERNMENT 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 GOVERNMENT sends such notice to CITY, or at such other later date as GOVERNMENT 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. GOVERNMENT shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the Premises is subject. If at the time of such partial taking for public use, GOVERNMENT determines that such partial taking will not prevent it from continuing to operate,-then GOVERNMENT and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when GOVERNMENT is effectively prevented from utilizing the condemned land. ARTICLE 16—DISPUTES 16.1 CONTRACT DISPUTES ACT. This Lease is subject to the Contract Disputes Act of. 1978, as amended (41 U.S.0 §7101 et.seq.). Except as provided in the Act, all disputes arising under or relating to this Lease shall be resolved under this Article 16, 16.2 CLAIMS. "Claim,"as used in this Article 16,means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain,the adjustment or interpretation of contract terms, or other relief arising under or relating to this Lease. However, a written demand or written assertion by CITY seeking the payment of money exceeding$100,000 is not a claim under the Act until certified.A voucher,invoice,or other routine request for payment that is not in dispute when submitted is not a claim under the Act. The submission may be converted to a claim under the Act, by complying with the submission and certification requirements of this Article 16, if it is disputed either as to liability or amount or is not acted upon in a reasonable time. a. A claim by CITY shall be made in writing and, unless otherwise stated in this Lease, submitted within 6 years after accrual of the claim to GOVERNMENT for a written decision.A claim by GOVERNMENT against CITY shall be subject to a written decision by GOVERNMENT. (1) CITY shall provide the certification specified in paragraph(d)(2)(iii)of this clause when submitting any claim exceeding$100,000. (2) The certification requirement does not apply to issues in controversy that have not been submitted as all or part of a claim. (3) The certification shall state as follows: "I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief, that the amount requested accurately reflect the contract adjustment for which the City of Seward believes the United States of America is City of Seward: / United States of America_ 24� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 20 liable; and that I am duly authorized to certify the claim on behalf of the City of Seward." b. The certification may be executed by any person duly authorized to bind CITY with respect to the claim. 16.3 DATE OF DECISION. For CITY claims of $100,000 or less, GOVERNMENT must, if requested in writing by CITY, render a decision within 60 days of the request. For CITY-certified claims over $100,000, GOVERNMENT must, within 60 days, decide the claim or notify CITY of the date by which the decision will be made. GOVERNMENT's decision shall be final unless CITY appeals or files a suit as provided in the Act. 16.4 ALTERNATE DISPUTE RESOLUTION. ARBITRATION. a. If the claim by CITY is submitted to GOVERNMENT or a claim by GOVERNMENT is presented to CITY, the parties may, by mutual consent, agree to use an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 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. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than Fifty Thousand Dollars and No/100s ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than Fifty Thousand Dollars and No/100s ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction)concerning any claim, counterclaim, dispute or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars and No/100s ($50,000). All such claims over$50,000 will be resolved pursuant to the aforementioned Contract Disputes.Act. The costs and expenses of arbitration shall be shared equally by the parties,and each party shall bear its own attorney's fees and costs. b. Arbitration procedures shall be applicable only to contract,negligence,and similar claims arising from or related to this Lease, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c. Written notice of requests for arbitration of disputes may be served by either party to this Lease upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five 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. City of Seward: / United States of America/ 22Q{ 6 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 21 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, 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. 16.5 INTEREST PAYMENT. GOVERNMENT shall pay interest on the amount found due and unpaid from (1) the date that GOVERNMENT receives the claim(certified,if required); or(2) the date that payment otherwise would be due,if that date is later, until the date of payment. With regard to claims having defective certifications, as defined in FAR 33.201,interest shall be paid from the date that GOVERNMENT initially receives the claim. Simple interest on claims shall be paid at the rate,fixed by the Secretary of the Treasury as provided in the Act, which is applicable to the period during which GOVERNMENT receives the claim and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim. 16.6 PERFORMANCE OF LEASE. CITY and GOVERNMENT shall proceed diligently with performance of this Lease,pending final resolution of any request for relief,claim,appeal,or action arising under the Lease. ARTICLE 17-MAINTENANCE AND REPAIRS 17.1 NORMAL MAINTENANCE. During the entire term of this Lease and every extension hereto, if any, GOVERNMENT shall, at GOVERNMENT's sole cost,risk and expense,maintain the Premises, including any improvements placed thereon by GOVERNMENT, in as good condition as received or constructed by GOVERNMENT, subject to normal, non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by GOVERNMENT, perform maintenance and preventative work on the Premises, exclusive of improvements placed thereon by GOVERNMENT, in order to prevent erosion, mitigate damage to plants and animals,or prepare the Premises for eventual development by GOVERNMENT or others by grading,filling or contouring the Premises.Any such work performed by CITY shall be at CITY's sole expense and risk unless GOVERNMENT agrees, in advance and in writing, to share such expense and risk. GOVERNMENT shall maintain in first class condition at all times all fire,pollution and other protective equipment,if any are placed on Premises. 17.2 SAFETYISSUES. CITY may notify GOVERNMENT in writing of any deficiencies in the performance of GOVERNMENT's maintenance responsibilities as they relate to public health or safety and GOVERNMENT shall promptly within thirty(30)days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies.If such deficiencies relate to the safety of GOVERNMENT'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 City of Seward: / United States of America / 22�c� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 22 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 GOVERNMENT shall pay the cost of the report and perform such work in accordance therewith at GOVERNMENT's cost, risk and expense, subject to availability of Congressional appropriation of funds. 17.3 COST OF REPAIRS. a. Should GOVERNMENT 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 GOVERNMENT may either deduct from future rental payments the cost of such repairs and report or be reimbursed therefore. b. If any facility or service provided by CITY to the Premises shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in GOVERNMENT's use of the Premises or operations there from, GOVERNMENT shall either construct such improvements at GOVERNMENT's own cost or reimburse CITY for such work, subject to availability of funds from Congressional appropriation. 17.4 FIRE AND CASUALTYDAMAGE. If the entire premises are destroyed by fire or other casualty, this Lease will immediately terminate. In case of partial destruction or damage,so as to render the premises untenantable, as determined by GOVERNMENT, GOVERNMENT may terminate the Lease by giving written notice to CITY within 15 calendar days of the fire or other casualty; if so terminated, no rent will accrue to CITY after such partial destruction or damage; and if not so terminated, the rent will be reduced proportionately by supplemental Lease agreement hereto effective from the date of such partial destruction or damage. Nothing in this Lease shall be construed as relieving CITY from liability for damage to or destruction of property of the United States of America caused by the willful or negligent act or omission of CITY. ARTICLE 18-ENVIRONMENTAL CONCERNS 18.1 HAZARDOUS MATERIALS. a. Condition of Site. GOVERNMENT has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the Premises in "as is" condition. GOVERNMENT may elect, at GOVERNMENT's sole cost, to conduct a baseline soils test prior to execution of this Lease. b. Release of CITY. Any other provision of the Lease to the contrary notwithstanding, GOVERNMENT 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 Materials on the Premises by GOVERNMENT or arising from GOVERNMENT's operations at the Premises except for those claims City of Seward: / United States of AmericaPY / 222 -O City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 23 arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Premises 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. (1) GOVERNMENT shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Premises except for such Hazardous Material as is necessary to conduct GOVERNMENT's authorized use of the Premises. (2) Any Hazardous Material permitted on the Premises as provided in this paragraph, and all containers therefore, 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. (3) GOVERNMENT 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 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 Premises or elsewhere; or(b) condition, use or enjoyment of the Premises or any other area or personal property. (4) GOVERNMENT 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 Premises by GOVERNMENT, its authorized representatives and invitees, and GOVERNMENT shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d. Damages. CITY may file a claim pursuant to Article 16 of this Lease 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: (1) The presence, disposal, release or threatened release of any such Hazardous Material which is on or from the Premises, soil, water, ground water, vegetation, buildings,personal property,persons,animals or otherwise; (2) 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 Premises; (3) Any lawsuit brought or threatened,settlement reached or government order relating to such Hazardous Material or any use of the Premises; and/or (4) Any violation of any laws applicable thereto; provided, however, that this Section 18 .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 Premises by GOVERNMENT or GOVERNMENT's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants or any other City of Seward: / United States of America M/Z/ 293 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 24 persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities GOVERNMENT 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,GOVERNMENT shall be deemed the operator of any facility on the Premises. 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 judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976 (42 U.S.C. §6901 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. §9601 et seq.),and the Clean Water Act(33 U.S.C. §1251 et seq.) 18.2 PERMITS AND REPORTING. a. Permits Required by Other Governmental Agencies. GOVERNMENT 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 GOVERNMENT commencing work under this Lease. GOVERNMENT shall promptly make all reports to any federal,state or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. CITY, through the City Manager, may order GOVERNMENT to immediately cease any operations or activities on the Premises 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. GOVERNMENT shall immediately provide CITY with copies of all correspondence and notices, including copies, of all reports between GOVERNMENT and any state, federal or local government or agency regulating Hazardous Material which relate to GOVERNMENT's operations on or use of the Premises. ARTICLE 19-ESTOPPEL CERTIFICATES/STATEMENT OF LEASE 19.1 REQUESTS FOR STATEMENTS OF LEASE Either party shall at any time and from time to time upon not less than thirty(30) days'prior written request by the other party and a prospective lender or purchaser of the Premises, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing City of Seward: / United States of America PP/Z/ 221t City of Seward Resolution No, Lease No.DACA85-5-1100064 Page 25 certifying that the same is issued subject to the conditions stated in this clause and, if such is the case, that (1) the Lease and its amendments, if any, are in full force and effect; (2) the date to which the rent and other charges have been paid in advance, if any; and (3) whether any notice of default has been issued. 19.2 CONDITIONS FOR STATEMENTS OF LEASE Statements issued by GOVERNMENT pursuant to this Article are subject to the following conditions: a. That they are based solely upon a reasonably diligent review of GOVERNMENT's Lease file as of the date of issuance; b. That GOVERNMENT shall not be held liable because of any defect in or condition of the Premises; c. That GOVERNMENT does not warrant or represent that the Premises comply with applicable Federal, State and local law; d. That CITY, and each prospective lender and purchaser are deemed to have constructive notice of such facts as would be ascertainable by reasonable pre-purchase and pre- commitment inspection of the Premises by inquiry to appropriate Federal, State and local Government officials; and e. That such statement shall be certified by the appropriate Contracting Officer having authority to so do. ARTICLE 20-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 21-NO WAIVER OF BREACH No failure by either CITY or GOVERNMENT 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 and no acceptance of full or partial rent or other performance by either party during the continuance of any such breach; 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 22-TIME OF THE ESSENCE Time is of the essence of this Lease and of each provision. ARTICLE 23-COMPUTATION OF TIME The time in which any act provided by this Lease is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday,and then it is also excluded. ARTICLE 24—SUCCESSORS BOUND City of Seward: / United States of America 7�Y 1(4 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 26 Each and all of the terms, covenants and conditions in this Lease shall bind, and inure to the benefit of, CITY and GOVERNMENT and their respective heirs, executors, administrators, successors,and assigns. ARTICLE 25—INTEGRATED AGREEMENT THIS LEASE,UPON EXECUTION,CONTAINS THE ENTIRE AGREEMENT OF THE PARTIES WITH RESPECT TO THE MATTERS COVERED BY THIS LEASE;AND NO PRIOR WRITTEN OR ORAL AGREEMENT,EXPRESS OR E%IPLIED,SHALL BE ADMISSIBLE TO CONTRADICT THE PROVISIONS OF THE LEASE.ARTICLE 26- GOVERNING LAW This Lease shall be governed by, construed and enforced in accordance with the laws and regulations of the United States of America, the State of Alaska, and the City of Seward. In the event of any conflict between said laws and regulations,the higher authority shall prevail. ARTICLE 27-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 28-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 GOVERNMENT; 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 GOVERNMENT other than the relationship of lessee and lessor. ARTICLE 29-EXAMINATION OF RECORDS CITY agrees that any duly authorized GOVERNMENT representative shall have the right to have access to and to examine any directly pertinent books, documents, papers, and records of CITY involving transactions related to this Lease, in connection with an official audit of this Lease,until the expiration of three(3)years after final payment of the agreed rental.This Article 29 shall not be construed as obligating CITY to maintain any books, documents, papers or records, and CITY shall not be subject to any penalty or act of default as a result of disposing or destroying CITY books, documents, papers or records pursuant to CITY's record retention policies. ARTICLE 30-GRATUITIES TO GOVERNMENT EMPLOYEES 30.1 .GOVERNMENT MAY TERMINATE. The GOVERNMENT may,by written notice to the CITY,terminate the right of the CITY to proceed under this Lease if it is found, after notice and hearing,by the Secretary of the Army or his duly authorized representative, that gratuities (in the form of entertainment, gifts, or otherwise)were offered or given by the CITY, or any agency or representative of the CITY, to any officer or employee of the GOVERNMENT with a view toward securing a Lease or securing favorable treatment with respect to the awarding or amending, or the making of any determinations with respect to the performing, of such Lease,provided, that the existence of City of Seward: / United States of America 22.&L\ City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 27 facts upon which the Secretary of the Army or his duly authorized representative makes such findings shall be in issue and may be reviewed in any competent court. 30.2 PURSUIT OF REMEDIES. In the event this Lease is terminated as provided in paragraph 30.1 hereof, GOVERNMENT shall be entitled to pursue the same remedies against CITY as it could pursue in the event of a breach of the Lease by CITY. 30.3 RIGHTS AND REMEDIES NOT EXCL USIVE. The rights and remedies of GOVERNMENT provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Lease. ARTICLE 31-OFFICIALS NOT TO BENEFIT No member of or delegate to Congress, or Resident Commissioner shall be admitted to any share or part of this Lease,or to any benefit that may arise there from; but this provision shall not be construed to extend to this Lease if made with a corporation for its general benefit. ARTICLE 32-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 GOVERNMENT as both CITY and GOVERNMENT have had the opportunity to seek assistance of counsel in drafting and reviewing this Lease. ARTICLE 33-CAPTIONS Captions of the articles, paragraphs and subparagraphs of this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation,construction or meaning of the provisions of this Lease. ARTICLE 34-AMENDMENT This Lease is subject to amendment in writing,agreed to and executed by both parties hereto. ARTICLE 35-NOTICES All notices, demands or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate.Notice by mail shall be deemed to have been given the day after the time of mailing. All notices, demands and requests from GOVERNMENT to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD P.O.Box 167 Seward,Alaska 99664 All notices, demands or requests from CITY to GOVERNMENT shall be given to GOVERNMENT at the following address: City of Seward: / United States of America1`(� 2 T City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 28 Department of the Army U.S.Army Engineer District,Alaska Real Estate Division(CEPOA-RE) P.O.Box 6898 JBER,Alaska 99506-0898 Each party shall have the right, from time to time,to designate a different address by notice given in conformity with this Article. ARTICLE 36—ATTACHMENTS TO LEASE The following documents are attached and hereby made part of the Lease. Exhibit A: Plat 2010-10 Exhibit B: Site Plan City of Seward: / United States of America / 228S 6 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 29 IN WITNESS WHEREOF,the parties hereto have executed this Lease the dates herein set forth. CITY: GOVERNMENT: -Z" CITY OF SEWARD UNITED STATES OF AME CA Phillip Oates Acting by and through the City Manager SECRETARY OF THE ARMY Thomas M.Kretzschmar Date: Chief of Real Estate Real Estate Contracting Officer U.S.Army Engineer District,Alaska Date: ATTEST: Johanna Kinney, CMC City Clerk City of Seward: / United States of America (7 229s� City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 30 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2011,before me,the undersigned,allotary Public in and for the State of Alaska,personally appeared Phillip Oates,known to me and to me known to be the City Manager for the City of Seward, Alaska, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this 2nd day of August,2011,before me,the undersigned,a Notary Public in and for the State of Alaska, personally appeared Thomas M. Kretzschmar, known to me and to me known to be the Chief of Real Estate of the US Army Corps of Engineers,Alaska District,and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the United State of America for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year fast hereinabove written. $��Q�\ �:•. ! btiyi� Oubwrib d and sworA to before rna ''NOTARY Not Public in and for Alaska r i �' ;PUBLIC:* mry My Commission Expires: Q �:•.. :� r� i OF NV 'S � tAy Corrxnlssfon tJ Or*tc City of Seward: / United States of America l lb 230 0 City of Seward Resolution No. Lease No.DACA85-5-1100064 Page 31 EXHIBIT A PLAT 2010-10 SSDW'tO'W 47.00' LEGEND of Found J 1/4'Al.Cap Monument = - B Found Reba k At Cap LS 5152 x 42 C a u TRACT A • Found Reba 8•ACop LS 7569 S s,om I 0 Found 5/B'Roba '�' 2546 Sq. Ft u Set 5/6A24-Reba d•Po.�LS 7569 �' S�$ 164.69'Measured 77ih Surrey (164.7Y) Record Data Plot 96-28 8 I I ——— c�Jr.42' to, 00' 27.00' ��9ODo'P1' N89W""r —a—an' 6RG�N4456 071� DETAIL 1'=20' I LOT JA I I ' MANNA SURD 96SJ4' (161.7Y)164.69_ v 58938"14'M' 1T50.02' F u sx3Q (Be95949•e 115a0n I A es elm OF D NI I� gi 12 I kg L I-J " LOT 4A i vIN MARWA SUBO se BLOCK 2 REPLAY i Io Pub/k Paftg and Access famment i Is I Seward Boat Harbor i N I t I I /* (S8959.15'W 13446') S693J'0S-W 1J4.55' CT A� I ZOW ATS 174 I oetan� ' ,.•` eo°va°DARYYF F I 0AM,OMSn 3265 A DA7FD MAY/9,1931 -T_ APPRaWA AY ABOL£ I IM M.LLW PM ALQAA 710E WA FOR MAWA 945 5M I PLAT APPROVAL MALW m 1011211884 7hb plat Was goprowd by the Kanol Pen81sulo Borough Planning I Cocunboran of t(re meefbg of A—V, , I-Xi 7-o0-7 Resurrection Bay City of Seward: / United States of America �L/ 2.1—Ic I ZI L^' Conc, R=p Boordwolk CIA ------------- C3 r ---------—----- (0------ CU 7 9 Gravel poolly Float am 4 ----------- Shed < '800 Veto, ®L7 56 5 AWZ"g it Proposed Lease LEGEND 2546 Sq Ft Found Rebpr & Al. Cap LS515;? A Prop osed PO 54 se ( round Rebbr & Pl, Cap LS7569 Found Rebor Q11 Existing Property Lines' L=31A2' ;L 27.00 R20,00' proposed t Oose 80undories Fire Hy'droli t v�- cruv'�/ Rood 2 Light Pole ! Conc.I m utility Pole, M Telecomm Pedestol Water Valve sign Electric Transforn7er PPOTO KEY PLAN 232 5' SANITARY SEWER Conc Romp 1-5 GRAVITY LINE FROM NEW �b SEWER RETAINAGE Board STRUCTURE. CONNECT TO t 3, EXISTINGS.S. MANHOLE ON NORTH SIDE OF PUBLIC TOILET FACILITY / --EXISTING 61 BUILDING. (APPROX, 300' o D.I. WATER Pn co DISTANCE NORTH) SERVICE Z,o (ALTERNATE OPTION: FORCE MAIN FULL ---------- uo DISTANCE) 2' FORCED shed 3' SANITARY �,fetes -5- )6 E SEWER LINE SETBACK 200 NEW WATER, 9*55'18"(Vf 4 7,00' Li! Z: AMP LINE FROM EXISTING CAP posed Le se I Q, 11 uj 4, LEGEND 03 546 S Found Rebor �31 AL Cap LS5152 WAMT METER Found mebt7r & Pl. Cop LS7569 40Oi i=Azw of0'-0' BUILDING Found Rebor ) SETBACK Fxisting Property Lines =31.4 2' 27 00' R=20,00 UNDERGROUND Proposed Lease f3vundories TANK 4 GRINDER PUMP 9 178:11E Fire Hydron t orovcf Root'! 0'-0' BUILDING Bollards SETBACK Lioht Pole Conc. Utility Pole 0 IT, 'relecomm pedestol O Sign 1!�J Electric Transformer PROPOSED BUILDING; AND UTILITY EXTENSIONS 233 • AMP Resolution 2023-098: Approving the Terms of the Real Property Exchange Agreement between the City of Seward and the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska and a Replacement Lease Agreement Between the City of Seward and the United States Coast Guard for Property at 1507 X Float Road and authorizing the City Manager to Sign all Documents Required to Complete the Agreement Documents: • Agenda Statement • Resolution 2023-098 • Real Property Exchange Agreement • Resolution 2023-002 234 City Council Agenda Statement . Meeting Date: August 28, 2023 To: City Council From: Norm Regis,Acting City Manager Subject: Resolution 2023-098: Approving the Terms of the Real Property Exchange Agreement between the City of Seward and the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska and a Replacement Lease Agreement Between the City of Seward and the United States Coast Guard for Property at 1507 X Float Road and authorizing the City Manager to Sign all Documents Required to Complete the Agreement Background and justification: The City has been working with the Coast Guard since 2014 on a feasibility study to homeport a Fast Response Cutter (FRC) in Seward. Working with many different Coast Guard personnel who regularly change duty stations has drawn out the process. The City started working with a civilian officer, Mr. David Brumley, that handles land acquisitions for the Coast Guard. In 2022, the City was visited by the Commandant ofthe Coast Guard along with Senator Sullivan which helped negotiations progress rapidly.We have found a suitable location for their facilities,the above referenced subject property,commonly known as 3201 Sorrel Road at SMIC.We had the parcel re-platted for the footprint that the Coast Guard needs for their Uplands Shore facility. Working with Mr. Brumley, the U. S. Coast Guard made an offer of$480,000 to purchase Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough,Coastal Lot Replat, Seward Recording District,Third Judicial District, State of Alaska. This offer was above what the City expected based on its own appraisal. As part of the offer,the Coast Guard is going to vacate city property at 1507 X Float Road earlier than the current end date of their lease and give the building to the City.The 15 07 X Float Road land is owned by the City and leased to the Coast Guard through lease L11-041, and USCG contract HSCG89-11-1-0047. The appraised value on the building is $335,000. The current lease expires in 2028 but it is expected the Coast Guard will vacate the property in 2025 once the new facility is completed. The City Council adopted Resolution 2023-02 on January 9,2023 after holding a public hearing authorizing the City Manager to negotiate an agreement"substantially similar"to the terms contained in a draft agreement attached to the Resolution. The Resolution said the negotiated agreement would be "subject to further consideration and final approval by the City Council at a later date". Negotiations have been concluded and the attached agreements signed by the Coast Guard are very similar to the draft agreement attached to Resolution 2023-02. Substantive changes are: 1. Purchase price-increased to$480,600 to precisely match an appraised value opinion obtained by USCG. 2. The existing lease has been renumbered by USCG as USCG Contract HSCG89-23-1-0050 with a shorter term. Rent remains the same. This was done to accommodate Government bookkeeping. 3. A provision was added requiring USCG to give the existing building on the leased property to the City at Closing. The City Manager is requesting the Council to approve the negotiated agreements. 235 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 This legislation(✓): x Creates revenue in the amount of: $ 480,600.00 Creates expenditure in amount of: $ Creates a savings in the amount of: $ 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 Capital Acquisition X Fund Note: amounts are unaudited Available Fund Balance/Net Position: $200,999.44 Finance Director Signature: Attorney Review X Yes Attorney Signature: Not applicable Comments: 236 Administration Recommendation e✓ Adopt AM Other: 237 Sponsored by: Regis CITY OF SEWARD,ALASKA RESOLUTION 2023-098 A Resolution of the City Council of the City of Seward,Alaska,Approving the Terms of the Real Property Exchange Agreement between the City of Seward and the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska and a Replacement Lease Agreement Between the City of Seward and the United States Coast Guard for Property at 1507 X Float Road and authorizing the City Manager to Sign all Documents Required to Complete the Agreement WHEREAS, the City has been working with the U.S. Coast Guard ("USCG") on a land acquisition site for their Fast Response Cutter ("FRC") located in Seward; and WHEREAS, the USCG has requested a section of land located at Seward Marine Industrial Complex("SMIC") for their Uplands Shore facility for the new FRC; and WHEREAS, the City had the USCG's desired site re-platted as Lot 2A-1 Block 9 Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska ("SMIC Lot 2A-1 Block 9"); and WHEREAS, two appraisals were completed: one by the City. valuing the parcel at $425,000.00 and one by the USCG. valuing the parcel at $480,000.00; and WHEREAS, on December 5, 2022 the City received an offer of $480,000 from the USCG for SMIC Lot 2A-1 Block 9; and WHEREAS, included in this offer is to exchange the remaining leasehold interest of the USCG's shore support building located at 1507 X Float Road Seward, Alaska (the "Building") (Lease L11-041 and USCG Contract HSCG 89-11-1-0047 (to be replaced and renumbered as HSCG 89-23-1-0050) ; and WHEREAS, the City currently owns the land under the Building; and WHEREAS, the USCG appraised value of the Building was determined to be $335,000.00; and WHEREAS, the USCG is expected to leave the Building with approximately 3 years left on the leasehold interest; and 238 CITY OF SEWARD,ALASKA RESOLUTION 2023-098 WHEREAS, based on the full appraised value of the Building, the remaining leasehold value is $50,250.00; and WHEREAS, Seward City Code 7.05.120 states City Council may acquire or dispose of an interest in real property by negotiation,public auction, or sealed bid; and WHEREAS,when the acquisition and move is complete, the USCG will pay the City $480,600.00 for SMIC Lot 2A-1 Block 9 and the current lease agreement between the City and USCG (Lease L11-041 and USCG Contract HSCG 89-11-1-0047) will be replaced with a new lease agreement(Lease L11-041 and USCG Contract HSCG89-23-1-0050). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council finds it is in the public's interest to enter into a Purchase and Sale Agreement with the USCG for SMIC Lot 2A-1 Block 9 and a new lease agreement L11-041 for lease of 1507 X Float Road. Section 2. The City Manager is authorized to sign the Real Property Exchange Agreement and the Lease Agreement attached hereto, and to make such corrections and execute related documents as may be necessary to fulfill the intent of this resolution on behalf of the City of Seward. Section 3. This Resolution will take effect in 30 days. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of August 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk 239 REAL PROPERTY EXCHANGE AGREEMENT BETWEEN THE UNITED STATES OF AMERICA,ACTING BY AND THROUGH THE UNITED STATES COAST GUARD,AND THE CITY OF SEWARD,AK This Exchange Agreement (hereinafter,the "Agreement") is made as of 3 2023 pursuant to 14 U.S.C. §§ 501 (e), (f) between the United States of America by and through the U.S. Coast Guard (hereinafter, the "Government"), and the City of Seward (hereinafter, the "City"), AK, organized as a first-class home-rule municipality under the laws of the State of Alaska (collectively hereinafter,the "Parties"). Government and City agree as follows: I. Purchase and Sale: Subject to the terms and conditions of this Agreement, the City agrees to sell, and Government agrees to purchase the real property described as follows along with all improvement located thereon (hereinafter,the"Property"): Lot 2A-1,Block 9,FOURTH OF JULY CREEK SUBDMSION,SEWARD MARINE INDUSTRIAL CENTER,COASTAL LOTS REPLAT,according to Plat 2022-1,records of the Seward Recording District,Third Judicial District,State of Alaska. Also known as 3201 Sorrel Road, Seward AK 99835 1 Parcel ID: 14534051 subject only to the "Permitted Exceptions" as defined in Section 5 below. 2. Purchase Price and Payment Terms. The purchase price for the Property shall be four hundred eighty thousand dollars ($480,600.00). Government will pay a deposit of ten thousand dollars($10,000.00)(hereinafter,the"Earnest Money" or"Deposit") to the Escrow Agent described in Section 4 with Government's delivery of this signed Agreement to the City. After all other terms and conditions of this Agreement have been satisfied, including completion of all contingencies in Section 8 to Government's sole satisfaction,the balance of the purchase price shall be due to the City at Closing. Under the municipal charter and code of ordinances of the City,the City resolution required to approve this Agreement will be effective 30 days following adoption of such resolution,except as provided in Section 3. A. Currently the Government has approximately 8 years remaining on a leasehold interest in the Government's building(hereinafter the `Building") located on the City's property at 1507 X Float Road,Seward,AK(hereinafter,the "Leased Premises"). B. In partial satisfaction of the purchase price,the Government and the City agree to exchange the final three years of leasehold interest in the Building. Based on the appraised value and Government's remaining leasehold interest, the leasehold value is agreed to be $134,000. The City agrees to accept and apply Government's remaining leasehold value of$134,000 towards the purchase price of the Property. C. The Government shall have continued use of the building under the terms and condition of EXCHANGE AGREEMENT 240 Page 1 of 11 10/P �/`� ji City Gov lease# HSCG89-23-1-0050 until August 31, 2028. The Government and the City will enter into a lease for the Government's use of the building. The lease will be executed at closing. 3. Referendum. Nothing in this Agreement shall affect or reduce the rights of the voters of the City of Seward to reject the City Council's approval of this Agreement by referendum. In the event a referendum petition is timely filed and accepted,the City shall provide written notice of acceptance to the Government at the time the petition is accepted. In such event,the Government agrees that it shall have no rights under this Agreement unless and until a resolution is approved by the voters of the City of Seward. Based on the burden and delay inherent in a referendum, t h c Government shall have the option of canceling this Agreement by providing written notice to the City no later than thirty(30) days after the Referendum petition is approved, with the City returning the Government's Earnest Money and prompt reimbursement by the City of all of Government's reasonable,third-party costs actually incurred by Government in connection with the subdivision and replat, if a referendum petition is approved. Government shall not be entitled to any damages or other relief against the City in the event the voters void the Council's resolution. If the resolution approving this Agreement is voided by such referendum action,this Agreement shall terminate, the Deposit shall be promptly returned to Government, and platting costs returned, within ten(10) days of the formal certification of the referendum vote, and neither party shall have any further obligation hereunder. 4. Environmental.Reports. The Government acknowledges its receipt and approval of a Phase I and Phase II Environmental Site Assessment with respect to the Property. The City acknowledges its receipt and approval of a Phase I and Phase II Environmental Site Assessment with respect to the Leased Premises. The Parties agree that the City will be responsible for removal or other remedial actions concerning any hazardous substances found on the Property. The Parties agree that the Government will be responsible for removal or other remedial actions concerning any hazardous substances found on the Leased Premises, subject to applicable law. 5. Prorations and Adiustments. A. City Responsibilities. On the basis that the City is the owner of the Property on the Closing date,the City shall be responsible to the Government on a prorated and adjusted basis for the following: (1) Any unpaid real estate taxes and water and sewer tap fees and/or use charges which that been levied upon or have become a lien against the Property as of the Closing date and that are due and payable, if any, shall be paid by the City. Real estate taxes and current installments of special assessments for the current period shall be prorated and adjusted as of the Closing on a due date basis. (2) The City shall pay any and all transfer taxes and fees, sales taxes and revenue stamps in connection with the consummation of the transactions contemplated by this Agreement,which it owes. B. Government Responsibilities. The Federal Government is not subject to real estate taxes, transfer taxes and fees, sales taxes and revenue stamps in connection with the consummation of the transactions contemplated by this Agreement and will not pay such taxes. (1) The Government shall pay any water/sewer tap fees an, use charges which that been levied upon or have become a lien against the Leased Premises as of the Closing date. EXCHANGE AGREEMENT Page 2 of 11 241 city Ov C. Government and City Responsibilities. (1) Each Party shall pay prior to closing the following fees and charges on a prorated and adjusted basis on the basis that each Party is the owner of the property it will transfer on the Closing date: electricity,water/sewer,natural gas and sanitation and the transferor shall be reimbursed for any security or similar credit then existing in favor of the transferor and assignable to the transferee. (2) The Parties shall have 14 days from the execution of this contract to procure clear title insurance with all exceptions, defects, and encumbrances discharged on the closing date. If a Party is unable to correct the defects and encumbrances, the other Party may elect, at its own option, either to accept title subject to the defects and encumbrances which are not cured or to terminate this Agreement, whereupon all funds deposited into escrow shall be returned to the buyer. If after 14 days,a Party is unable to release this contingency then both Parties may mutually agree to extend the contingency period, or the other Party may terminate the Agreement. If neither Party acts during this 14-day period, then the contingency will continue until such time as the Party removes the contingency or one of the Parties terminated this Agreement.If the Party terminates this Agreement under this provision,then all remaining Parry escrow funds will be returned to the Parties. If during this period the removing of any title insurance policy exception is beyond the capability of either Party,then either Party may terminate this Agreement. (3) This action is contingent on the Parties' ability to review the closing documents in advance of deed recordings. Closing documents include Parties' closing statements and the prepared final deed. 6. Representations and Warranties. A. Title: The City will deliver to Government,at Government's expense,within fourteen(14) days of mutual execution of this Agreement a commitment for title insurance (hereinafter, the "Preliminary Commitment")preliminary to the issuance of the title policy referred to in Section 7 of this Agreement, together with copies of all underlying exceptions described in the Preliminary Commitment. The Property is to be sold and conveyed subject to: (a)the condition that title to the Property is vested solely in the City and in the City's name prior to closing, and (b) reservations, restrictions and easements as disclosed in the Preliminary Commitment and approved by Government. Government shall be entitled to object to any exceptions stated in the Preliminary Commitment by delivering written notice to the City and Escrow Agent on or before fifteen (15) days after the receipt of the Preliminary Commitment, supplemented with the copies of the underlying exceptions described therein,which notice shall specify the matters to which Government objects. if Government objects to any such matters, the City shall have fifteen (15) days after receiving written notice from Government to attempt to eliminate the matters to which Government has objected or to cause Escrow Agent to insure over said matters. The City shall notify Government in writing, within the fifteen (15) day period if the City is unable or unwilling to eliminate said matters or cause Escrow Agent to insure over said matters. Government may then elect,by written notice to the City and Escrow Agent, either to waive the objectionable matters and proceed to Closing or to terminate this Agreement and receive a refund of the Deposit, and the parties shall have no further obligations to each other under this Agreement. Permitted Exceptions: Notwithstanding the immediately preceding paragraph, Government may not object to any of the following title matters: reserved mineral rights; rights reserved to federal and state patents; ; real property taxes or assessments due after closing; any adverse claim based upon the EXCHANGE AGREEMENT 242 Page 3 of 11 City GQV assertion that some portion of said land is tide or submerged land,or has been created by artificial means or has accreted to such portion so created; any preference rights which may exist under the Alaska Land Act or terms, provisions and reservations under the Submerged Lands Act and the enabling act(Public Law 85-508, 72 Stat. 339); any prohibition or limitation on the use, occupancy or improvements of the land resulting from the right of the public or riparian owners to use any waters which my cover the land or to use any portion of the land which is now or may formerly have been covered by water. All items to which Government does not object under the immediately preceding paragraph, plus all items described in this paragraph, are referred to herein as"Permitted Exceptions." B. Damage or Destruction. The Parties agree that, in the event that the Property and/or Leased Premises are destroyed or materially damaged prior to the Closing Date,the Escrow money shall be returned to the Parties and this Agreement is terminated, unless the Parties agree otherwise in writing. C. Use and Operation of the Property. T h e P a r t i e s represent and warrant to that,as of the Effective Date of this Agreement through the Closing Date,the Properties will be used, operated and managed by the Parties in a manner consistent with the way the Property is currently being used, operated and managed. A Party will not execute or modify any existing lease or other agreement regarding the Property,without first obtaining the written consent of the other Party. D. Attorney's fees. To the extent not in conflict with federal law, should any dispute arise between the Parties hereto or their legal representatives, successors and assigns concerning any provision of this Agreement,the Party prevailing in such dispute shall be entitled, in addition to such other relief that may be granted,to recover reasonable attorney's fees and legal costs in connection with such dispute as determined by the judgement or award of any court or tribunal of competent jurisdiction. E. Escrow Money Dis osition. If either Party is in default or breach, escrow money may not be released or paid to a Party unless the Parties sign a Termination of Agreement to Purchase with Release of Escrow Money Addendum. If a dispute arises,prior to release or payment of the Escrow money,the title company holding the escrow money shall retain the money until one of the following occurs: (1) A written release is executed by the Parties agreeing to disbursement of the escrow money, OR (2) Legal action is filed regarding the Agreement and/or release and distribution of the escrow money, at which time the escrow money shall be deposited with the Court Clerk where the legal action is filed, OR (3) Ninety(90) days have passed since the effective date of this Termination Agreement and the Parties have not exercised options (1) or(2) at which point the escrow finds will be released back to the Buyer. F. Covenant against Contingent Fees. The Parties warrant that no person or selling agency has been employed or retained to solicit or secure this agreement upon an agreement or EXCHANGE AGREEMENT 243 Page 4 of 11 city OV understanding for a commission, percentage,brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Parties for the purpose of securing business. For breach or violation of this warranty,the Parties shall have the right to annul this agreement without liability or in its discretion to deduct from the purchase price the full amount of such commission,percentage, brokerage or contingent fee. The Parties agree that this covenant shall not apply to licensed real estate agents performing their normal functions. (1) The terms and conditions aforesaid are to apply to and bind the heirs, executors, administrator, successors and assigns of the City. (2) The terms and conditions with respect to this Agreement are expressly contained herein, both parties agree that no representative or agent for either party has made any representation or promise with respect to this offer not expressly contained herein. G. Gratuities. The Government may,by written notice to the City, terminate the right of the City proceed under this Agreement if it is found, after notice and hearing by the Secretary of the Department of Homeland Security, or his or her duly authorized representative, that gratuities (i.e., in the form of entertainment, gifts, or otherwise) were offered or given by the City, or any agent or representative of the City, to any officer or employee of the Government with a view toward securing this Agreement, or favorable treatment with respect to the awarding or amending of this Agreement, or the making of any determinations with respect to the performing of such Agreement: provided, that the existence of the facts upon which the Secretary or his duly authorized representative makes such findings shall be in issue and may be reviewed by any competent court. (1) In the event this Agreement is terminated as provided in Paragraph F,the Government shall be entitled: (i)to pursue the same remedies against the City as it could pursue in the event of breach of the contract by the City, and(ii) as a penalty, in addition to any other damages to which it may be entitled by law,to exemplary damages in an amount(as determined by the Secretary or his duly authorized representative) which shall be not less than three nor more than ten times the costs incurred by the City in providing any such gratuities to any such officer or employee. (2) The rights and remedies of the Government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. H. Congressional Involvement. The City represents, and it is a condition of acceptance of this offer, that no member or delegate to Congress, or resident commissioner, shall be admitted to or share any part of this agreement,or to any benefits that may arise there from;but this provision shall not be construed to extend to any agreement if made with a corporation for its general benefit. I. Brokers. The Parties each represent and covenant to the other that they have not EXCHANGE AGREEMENT 244 Page 5 of 11 �°� City av utilized and will not utilize the services of any broker or finder in connection with this transaction. The Parties shall each hold the others harmless from all liability for brokerage commissions, finder's fees or the like arising in connection with the subject exchange other than any such amounts as may be claimed by any broker alleging to have been retained by such ply. 7. Terms and Conditions. A. Inspection. Government, its agents and contractors, shall be given reasonable access to the Property to conduct such tests and inspections as Government deems appropriate; provided, however, Government shall give the City reasonable notice of Government's intention to access the Property. If Government reasonably determines from the inspections or testing that any condition of the Property does not meet Government's satisfaction, Government shall have the right within sixty (60) days after the effective date of this Agreement to object to such matter by delivering written notice to the City specifying the matters to which Government objects. To the extent that any objection is curable,the City shall have thirty (30) days after receipt of the written notice to cure the deficiency, at the City 's expense and to Government's satisfaction or negotiate an acceptable resolution with the Government. Unless Government has agreed to proceed as a result of the City's cure or other agreed-upon resolution, Government may elect, by written notice to the City,to waive the objectionable matter and proceed to Closing,negotiate a different,written resolution with the City, or to terminate this Agreement. If this Agreement is terminated by Government pursuant to this paragraph, the Deposit shall be returned to Government and the parties shall have no further obligation to each other under this Agreement. B. Property Condition. As Is Where Is Sale Release and Indemnification. The City sells and Government buys the property hereunder"as is"and"where is." T h e C i t y shall have no liability or responsibility to Government whatsoever for any violations of any law, regulation,building code, ordinance or other legal requirement of any kind whatsoever applicable to the property as may be discovered at any time, including but not limited to material(or non-material) Hazardous Substances contamination, violations of building or safety codes, latent defects, deterioration or problems or liabilities of any kind. Neither the City, nor any of its officers,directors, employees, agents,attorneys,or representatives have previously nor does under this Agreement make any representations or warranties. All inspection obligations rest with the Government. Government acknowledges that notwithstanding any prior or contemporaneous oral or written representations, statements, documents or understandings, this agreement constitutes the entire understanding of the parties with respect to the subject matter hereof,and supersedes all such prior or contemporaneous oral or written representations, statements, documents or written agreement and shall remain unaffected by any representations, statements or understandings subsequent to the date hereof which shall not be represented by a mutually executed amendment to this Agreement. EXCHANGE AGREEMENT 245 Page 6 of 11 City GOV C. Items included in this Sale. All existing fixtures and fittings that are attached to the property. D_ Deed. Title to the Property shall be conveyed to Government by a full warranty deed(hereinafter,the"Deed") duly executed by the City and recorded at the Closing. The Deed shall be in the form and content acceptable to the City and Government. 8. Closing, A. Closing Costs. All Closing costs of the transaction, unless otherwise provided in this Agreement, shall be divided as follows: The City shall pay the following Closing costs: (1) Any outstanding or pending assessments or liens (2) City's attorney fees and costs The Government shall pay the following Closing costs: (1) All recording fees (2) All document preparation fees (3) All Escrow closing fees (4) Owner's standard coverage title insurance described herein(Required) (5) Any ALTA title insurance policies desired by Government(Optional) (6) All Government's attorney fees and costs (7) Cost of Government's appraisal Notwithstanding the above, if the Escrow fails to close due to the default of one party, the defaulting party shall pay any escrow and title policy cancellation fees. From the date of mutual acceptance of this Agreement until Closing, the City agrees to maintain the Property in its present condition. A. City's Conditions Precedent. The Parties acknowledge that the City's obligation to close on the purchase of the Property shall be subject to the following: (1) Receipt of approval by Government of Government's inspection of the Property not revealing any basis upon which Government timely terminates this Agreement as provided in Section 10 below. (2) Approval of this Agreement by the Seward City Council, and, if a timely referendum petition is filed, approval by voters in a referendum election. (3) No litigation or other claim which has any probability or reasonable likelihood of succeesssAG , EXCHANGE AGREEMENT 246 Page 7 of 11 City V challenges or controverts the Government's action to acquire the Property. (4) Government to pay all amounts required by this Agreement. 4. Miscellaneous. A. Remedies. (1)lf Government (a) fails, without legal excuse,to complete the purchase of the Property, or (b) otherwise defaults under this Agreement, the City shall be entitled to retain the $10,000.00 deposited by Government with the Escrow Agent pursuant to Section 2(a) above, and such retention by the City of this $10,000.00 Deposit shall be the sole and exclusive remedy available to the City for such failure or default by Government; unless specifically provided otherwise herein. (2)If the City fails, without legal excuse, to complete the sale of the Property, then the Deposit shall be returned to Government. The City's return of the $10,000.00 Deposit to Government, shall be the sole and exclusive remedy available to Government for such failure or default by the City. B. Costs and Fees: If either party institutes suit concerning this Agreement, the prevailing party shall be entitled to its reasonable attorneys' fees and costs. B. Waiver: No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by the City or Government of a breach of any covenant of this Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. C.Assi meat• This Agreement is binding on the heirs, successors, and assigns of the parties, but shall not be voluntarily assigned by either party without prior written consent of the other party, which consent shall not be unreasonably withheld. D. Commissions: Each party represents and warrants to the other that it has not engaged the services of any broker,finder or other person who would be entitled to any commission or fee in respect to the subject matter of this Agreement and each shall indemnify the other against any loss, cost, liability or expense incurred by the other as a result of any claim asserted by any such broker, finder or other person on the basis of any brokerage or similar arrangement or agreement made or alleged to have been made. E. Notices: No notice, consent, approval or other communication provided for herein or given in connection with this Agreement shall be validly given, made, delivered or served unless it is in writing and delivered personally, sent by overnight courier or sent by registered or certified United States mail, postage prepaid, with return receipt requested to: EXCHANGE AGREEMENT Page 8 of 11 � 247 City Gov Seller: City of Seward Attn: City Manager P.O. Box 167 Seward,Alaska 99664 Government: United States Coast Guard Civil Engineering Unit Oakland 1301 Clay St, Suite#700N Oakland, CA 94612-5203 or to such other addresses as either parry may from time to time designate in writing and deliver in a like manner to the other parry. Notices, consent, approvals, and communications given by mail shall be deemed delivered upon the earlier of three days after deposit in the United States mail in the manner provided above or immediately upon delivery to the respective addresses set forth above, if delivered personally or sent by overnight courier. F. Entire Agrcement: This document and its attachments contain the entire Agreement between the parties. It may not be modified except in writing and signed by all parties. G. Construction of Agreement: The captions of the paragraphs of this Agreement are for convenience only and shall not govern or influence the interpretation hereof. This Agreement is the result of negotiations between the parties and, accordingly, shall not be construed for or against either party regardless of which party drafted this Agreement or any portion thereof. H. Surviving Covenants: The provisions of this Agreement shall survive the delivery of the Deed. 1. Time is of the Essence: Time is of the essence of this Agreement. J. Exclusive A eement: This Agreement shall constitute an exclusive arrangement between the parties. The City shall not market, sell,negotiate for the sale of, or convey the Property to any other person,provided that Government has not delivered notice that it will not close due to an unsatisfied condition. K. Controlling Law and Venue: This Agreement shall be governed by, construed under and enforced in accordance with and governed in all respects by applicable federal law, in addition to the laws of the State of Alaska, and venue for actions between the parties arising out of or related to this Agreement shall be in the Alaska Superior Court, Third Judicial District, Anchorage,Alaska. EXCHANGE AGREEMENT Page 9 of 11 248 City GOV L. Further Assurances: Whenever requested to do so by the other party, the City or Government promptly and expeditiously shall execute, acknowledge and deliver any and all such conveyances, assignments, confirmations, satisfactions, releases, instruments of further assurance, approvals, consents and any and all further instruments and documents as may be reasonably necessary, expedient,or proper in order to complete any and all conveyances,transfers, sales, and assignments herein provided, and to do any and all other reasonable acts and to execute, acknowledge and deliver any and all documents as so reasonably requested in order to carry out the intent and purpose of this Agreement, including but not limited to subdividing and platting the tract containing the Property and the parcel to be the Property. M. Miscellaneous: (1) By entering into this Agreement,the Parties represent that they are legally capable of transferring the property rights at issue from the State of Alaska to the U.S. Government, and vice versa. (2) All documents and addendums signed by the Parties that are referred in this Agreement, attached to this Agreement, or specifically referenced or labeled as part of this Agreement, shall be incorporated in and be a part of this Agreement. (3) It is mutually understood and agreed that this contract shall not be assigned in whole or in part without the consent in writing of the Parties. N. Possession: Government shall receive possession of the Property at the closing and recording of the full warranty deed. The leasehold agreement under Lease HSCG89-23-1-0050 between Government and the City for the Leased Premises as referenced in Section 2(b) shall terminate August 31, 2028. The execution of this Agreement constitutes proper notice to both parties to vacate the Leased Premises under the terms of Lease HSCG89-23-0050 and related lease agreement upon termination on August 31, 2028. Executed this day of E 2023 EXCHANGE AGREEMENT Page 10 of 11 9249 city Gov Buyer: United States Government by and through the United States Coast Guard David B jV ey,Real Estate Co. ling Officer State of Alaska /H rtz Judicial District(or County of } (or Municipality of The foregoing instrument was acknowledged before me this 3 i° of *q5,-,2023 by DAVID BRUMLEY, Real Estate Contracting Officer of the United States Coast Guard, on behalf of the United States,Government. (Seal) y� / ��' \1111�I1�IEIf1I1/liy// .0 Notary Si afore .......... My Commission Expires: 25 5 Seller: 6 CITY OF SEWARD Itlliltti Norm Regis',Acting City Manager State of Alaska Third Judicial District The foregoing instrument was acknowledged before me this this 5m of 2023 by Norm Regis Acting City Manager Seward, Alaska, on behalf of the City of Seward. �\1111NIM�iY 4gp p ��i Notary ignature My Commission Expires: 0 EXCHANGE AGREEMENT !!rl11111111 page 11 of 11 250 City OV Sponsored by: Bower Public Hearing: January 9, 2023 CITY OF SEWARD,ALASKA RESOLUTION 2023-002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO ENTER INTO AND EXECUTE THE PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH THE US COAST GUARD FOR THE SALE OF 1.576 ACRES OF LOT 2A-1 BLOCK 9 FOURTH OF JULY SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, COASTAL LOT REPLAT, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA FOR FOUR HUNDRED TWENTY-NINE THOUSAND SEVEN HUNDRED AND FIFTY DOLLARS ($429,750) WHEREAS, the City has been working with the US Coast Guard ("USCG") on a land acquisition site for their Fast Response Cutter ("FRC") located in Seward; and WHEREAS, the USCG has requested a section of land located at Seward Marine Industrial Complex ("SMIC") for their Uplands Shore facility for the new FRC; and WHEREAS, the City had the USCG's desired site re-platted as Lot 2A-1, Block 9, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska ("SMIC Lot 2A-1 Block 9"); and WHEREAS, two appraisals were completed: one by the City valuing the parcel at $425,000, and one by the USCG valuing the parcel at $480,000; and WHEREAS, on December 5, 2022, the City received an offer of$480,000 from the USCG for SMIC Lot 2A-1 Block 9; and WHEREAS, included in this offer is to exchange the remaining leasehold interest of the USCG's shore support building located at 1507 X Float Road, Seward, Alaska (the "Building") (Lease L 11-041 and USCG Contract HSCG 89-11-1-0047); and WHEREAS, the City currently owns the land under the Building; and WHEREAS, the USCG appraised value of the Building was determined to be $335,000; and WHEREAS, the USCG is expected to leave the Building with approximately three years left on the leasehold interest; and 251 CITY OF SEWARD, ALASKA RESOLUTION 2023-002 WHEREAS, based on the full appraised value of the Building, the remaining leasehold value is $50,250; and WHEREAS, Seward City Code 7.05.120 states City Council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid; and WHEREAS,when the acquisition and move is complete,the USCG will pay the City $429,750 for SMIC Lot 2A-1 Block 9 and the current lease agreement between the City and USCG (Lease L 11-041 and USCG Contract HSCG 89-11-1-0047) will be terminated. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council finds it is in the public's interest to enter into a Purchase and Sale Agreement with the USCG for SMIC Lot 2A-1 Block 9. Section 2. Upon completion of the USCG move to the new Uplands Shore facility located on SMIC Lot 2A-1 Block 9, the lease agreements between the City of Seward and the USCG will be terminated. Section 3. The City Manager is authorized and directed to negotiate on behalf of the City, a purchase and sale agreement with the United States Coast Guard for the Sale of 1.576 Acres for Lot 2A- 1 Block 9 Fourth of July Creek Subdivision,Seward Marine Industrial Center,Kenai Peninsula Borough, Coastal Lot Replat,Seward Recording District,Third Judicial District,State of Alaska,for Four Hundred Twenty-Nine Thousand Seven Hundred and Fifty Dollars($429,750),and containing terms substantially similar to those in the draft agreement attached hereto, subject to further consideration and final approval by the City Council at a later date. Section 4. This resolution will take effect thirty (30) days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 91h day of January, 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor 252 CITY OF SENVARD, ALASKA RESOLUTION 2023-002 AYES: Wells, DeMoss, Barnwell, Calhoon, Finch, Osenga, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Andat J. Bal C City Clerk `�1tii11°eSO& (City S 1}6 SE 1•. �•` 00 KT O0'''o. • --�- ON • _, SEAL 10 S ..♦-- OF 253 City Council Agenda Statement Meeting Date: January 9, 2023 To: City Council Through: Janette Bower, City Manager From: Norm Regis, Harbormaster Subject: Resolution 2023-002: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with the U.S. Coast Guard for the Sale of 1.576 Acres of Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District,Third Judicial District,State of Alaska for Four Hundred Twenty-Nine Thousand Seven Hundred and Fifty Dollars ($429,750) Background and justification: The City has been working with the Coast Guard since 2014 on a feasibility study to homeport a Fast Response Cutter (FRC) in Seward. Working with many different Coast Guard personnel who regularly change duty stations has drawn out the process. The City started working with a civilian officer, Mr. David Brumley that handles land acquisitions for the Coast Guard. In 2022, the Commandant of the Coast Guard along with Senator Sullivan, which helped negotiations progress rapidly, visited the City. We have found a suitable location for their facilities, the above referenced subject property, commonly known as 3201 Sorrel Road at SMIC. We had the parcel re-platted for the footprint that the Coast Guard needs for their Uplands Shore facility. The City had the lot appraised as part of the acquisition process. The City's appraisal was $425,000.00. The Coast Guard had their own appraisal done, which came in at $480,000, well above the City's appraised value. Working with Mr. Brumley, the U. S. Coast Guard has made an offer of $480,000 to purchase Lot 2A-1 Block 9 Fourth of July Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Coastal Lot Replat, Seward Recording District, Third Judicial District, State of Alaska. This offer is above what the City had expected based on its own appraisal. As part of the offer, the Coast Guard is planning to exchange the remaining leasehold interest in their building at 1507 X Float road. The land is owned by the City and leased to the Coast Guard through lease L11-041, and USCG contract HSCG89-11-1-0047.The appraised value on the building is $335,000. With a remaining leasehold interest of three (3) years,the remaining value that would be exchanged as a portion of the purchase price in $50,250. Due to this offset, the expected revenue of the City from this sale is $429,250 The City Manager is requesting the Council to accept this offer and allow the City Manager to negotiate the remaining terms of the sale. 2W4 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): x Creates revenue in the amount of: $ 429,750.00 Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted X Not applicable Fund Balance Information Affected Fund (✓): x General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review X Yes Attorney Signature: D-S� ca,_O_� Not applicable Comments: 2'�'5 Administration Recommendation ✓ Approve Resolution Other: 256 • AMP Resolution 2022-096 Recommending Kenai Peninsula Borough Approval of the Preliminary Right of Way (ROW) Acquisition Plat for the Seward Airport Located in T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, that Point Known as the Seward Airport, Physical Location, 2310 Airport Road; Acquiring and Replatting Various Legals Located in Sec 34, 35, 2 & 3, Seward Meridian SW Documents: • Agenda Statement • Resolution 2022-096 • Replat Application • ROW Acquisition Plat Maps • Seward Airport Improvement Project layout graphic 257 City Council Agenda Statement Meeting Date: August 28, 2023 To: City Council Through: Norm Regis, Acting City Manager From: Jason Bickling, Community Development Director Agenda Item: Resolution 2022-096: Recommending Kenai Peninsula Borough Approval of the Preliminary Right of Way(ROW)Acquisition Plat for the Seward Airport Located in T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, that Point Known as the Seward Airport, Physical Location, 2310 Airport Road; Acquiring and Replatting Various Legals Located in Sec 34, 35, 2 & 3, Seward Meridian SW Background and justification: The Planning and Zoning Commission approved Resolution 2022-018 on August 2, 2022, which rescinded previously approved Resolution 2021-014 recommending approval of the preliminary right of way acquisition plat for the Seward Airport Improvement project with conditions to provide public access to the beach to the south of the airport property, install a fire hydrant, and bring water and sewer to the airport facilities. This replat was reviewed again by the Planning and Zoning Commission for two reasons. First,the Preliminary Right of Way (ROW) Acquisition plat includes City-owned property and must be reviewed and approved by City Council per City Code 16.01.015(b). The City Council did not review or approve Resolution 2021-014. Second, the State of Alaska Department of Transportation and Public Facilities (DOT&PF) is using federal funds to finance the Seward Airport Improvement project; and funding constraints and federal oversight limit what improvements can be implemented in this project. There is currently no legal public access on or through the airport property and the Federal Aviation Administration (FAA) will not allow the DOT & PF to grant new public access due to flight safety concerns. The public will continue to have the right to navigate on the water and to walk on the exposed tidelands at low tide. Fire protection for the Seward Airport is provided by tank water on both Seward Fire engines and tankers provided by an automatic aid agreement with Bear Creek Fire Department; and extending and installing utilities to the leased lots on the Seward Airport property is not an eligible cost for federal funding. The Kenai Peninsula Borough requires documentation from the City of Seward that the conditions from Section 2 in Resolution 2021-014 are no longer required before they can grant approval of the final replat. 258 The attached preliminary ROW acquisition plat submitted by Alaska DOT & PF shows the parcels that need to be acquired and replatted for the necessary ROW on the new runway. Parcel 1 is owned by Civil Air Patrol and Parcel 5 is owned by the City of Seward. Parcel 4 is also shown on the preliminary plat, but no longer requires replatting as the larger parcel was acquired fully by DOT&PF this past year.These parcels are located within Sec 2 &3,T1S, R1W and Sec 34&35,T1N, R1W,Seward Meridian SW,and will be part of the Airport Improvement Project to create new ROW for Runway 16/34, which will be shifted, lengthened, and raised above the 100-year flood level. The Seward Airport has needed improvements for some time now that will substantially reduce the damage the airport is experiencing from recurrent flooding, and to meet FAA design standards based on current aircraft utilizing the airport and forecasted aviation needs. Currently, the runway lighting is old and needs replacement. Much of the pavement needs rehabilitation or replacement. Testing has revealed a weakened embankment under the pavement of Runway 13/31, necessitating a restriction of allowable aircraft weights to those under 12,500 pounds. Improvement of aging and deteriorating airport facilities is another major goal of this project. The river delta adjacent to the airport has been rising relative to airport elevations, increasing the frequency and severity of overtopping floods.The existing main runway(RW 13/31) is now too low and in the direct path of the river, which has been repeatedly damaging it during high water events. Overtopping events were initially limited to the fall but have been occurring June through November in recent years, making maintaining RW 13/31 increasingly difficult. In response to multiple flood events during of the summer of 2013, DOT&PF constructed an emergency dike that is providing some temporary relief. The most recent revision of the Federal Emergency Management Agency(FEMA) Flood Insurance Rate Map (FIRM) has now established a regulatory floodway across the existing main runway(RW 13/31) of the airport. By federal regulation, allowable construction is extremely limited in a regulatory floodway. DOT&PF completed a hydrologic study to help identify and evaluate feasible alternatives. RW 13/31 is adjacent to the Resurrection River which has flooded it and Taxiway A repeatedly in recent years, periodically closing the runway and causing ongoing repair expenses. To address this problem,this project will shift, lengthen,and raise the current crosswind runway(RW 16/34)above the 100-year flood level. Some taxiways will be raised to meet the new runway elevation while others will be removed in accordance with current FAA guidance. New runway and taxiway lighting will be installed. The river side of the raised runway will receive rip rap armoring to protect it during flood events. The aprons will be repaved, and new navigation aids will be installed. RW 13/31 will be closed, and the pavement removed, but the runway embankment will be left in place as additional protection against future flood events. Three alternatives were evaluated during the scoping and environmental process. The current project scope corresponds to Alternative 2.2 in the approved Environmental Assessment. Alternative 2.2 had the most advantages and the least significant disadvantages. 259 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Vol 1, Chapter 2.2.12.5 —Air Traffic Plan: . "Support the State's airport improvement plan." Vol 1, Chapter 3.1.1.2 — Update and expand infrastructure for commercial and industrial properties that are currently underdeveloped. • "Support and improve airport." Vol 1, Chapter 3.4.3 — Improve the usability of the state-owned airport. "Encourage the State to: Complete and implement a flood mitigation project to protect the runways from flooding." Strategic Plan: Improve the State Airport "Develop a flood mitigation project to protect the runway from flooding."(page 16) Other: N/A 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 Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water Healthcare Motor Pool Other Unassigned Fund Balance*: $ *unaudited numbers Available Unrestricted Cash Balance*: $ Finance Director Signature: Attorney Review eYes Attorney Signature: ✓ Not applicable Comments: Administration Recommendation e✓ Adopt Resolution Other: 260 Sponsored by: Regis Public Hearing: September 12, 2022 Postponed: September 12, 2022 Public Hearing: October 24, 2022 Postponed: October 24, 2022 Public Hearing: January 23, 2023 Postponed: January 23, 2023 Public Hearing: August 28, 2023 CITY OF SEWARD,ALASKA RESOLUTION 2022-096 A Resolution of the Seward City Council, Recommending Kenai Peninsula Borough Approval of the Preliminary Right of Way(ROW)Acquisition Plat for the Seward Airport Located in T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known as the Seward Airport, Physical Location, 2310 Airport Road; Acquiring and Replatting Various Legals Located in Sec 34, 35, 2 & 3, Seward Meridian SW WHEREAS, the Planning and Zoning Commission approved Resolution 2022-018 on August 2, 2022, rescinding previously approved Resolution 2021-014 and recommending City Council and Kenai Peninsula Borough approval of the Preliminary Right of Way Acquisition Plat for the Seward Airport Improvement project; and WHEREAS,the Preliminary Right of Way (ROW) Acquisition plat includes City-owned property and must be reviewed and approved by City Council per City Code 16.01.015(b); and WHEREAS,the City Council did not review or approve Resolution 2021-014; and WHEREAS,Resolution 2021-014 recommended approval of the preliminary right of way acquisition plat for the Seward Airport Improvement project with conditions to provide public access to the beach to the south of the airport property, install a fire hydrant, and bring water and sewer to the airport facilities; and WHEREAS, the State of Alaska Department of Transportation and Public Facilities (DOT&PF)is using federal funds to finance the Seward Airport Improvement project; and WHEREAS, funding constraints and federal oversight limit what improvements can be implemented in this project; and WHEREAS, there is currently no legal public access on or through the airport property and the Federal Aviation Administration (FAA) will not allow the DOT&PF to grant new public access due to flight safety concerns; and WHEREAS,the public will continue to have the right to navigate on the water and to walk on the exposed tidelands at low tide; and 261 CITY OF SEWARD,ALASKA RESOLUTION 2022-096 WHEREAS, fire protection for the Seward Airport is provided by tank water on both Seward Fire Engines and Tankers provided by an automatic aid agreement with Bear Creek Fire Department; and WHEREAS, extending and installing utilities to the leased lots on the Seward Airport property is not an eligible cost for federal funding; and WHEREAS, the Kenai Peninsula Borough requires documentation from the City of Seward that the conditions from Section 2 in Resolution 2021-014 are no longer required before they can grant approval of the final replat; and WHEREAS, the State of Alaska DOT&PF has requested that the Preliminary ROW Acquisition plat for the Seward Airport be reviewed again by the City of Seward and recommended to the Kenai Peninsula Borough; and WHEREAS, this Preliminary platting action recommends the replat of Parcel 1, owned by Civil Air Patrol in Sec 34 & 35, TIN, R1W, Seward Meridian SW That Point of the W1/2 of USS 722 as per W/D 24 @ 12; physical location 2200 Airport Road; and WHEREAS, this Preliminary platting action recommends the replat of Parcel 5, owned by the City of Seward located in the tidelands south of TIN& 1SR 1W Sec 34, 35, 2 & 3 Seward Meridian SW That Point Known as the Seward Airport; and WHEREAS,Parcel 1 is located in a Resource Management(RM)Zoning District; and WHEREAS, Parcel 5 is located in Tidelands, and does not have a specific Zoning District; and WHEREAS, a subdivision installation agreement is not required for this ROW Acquisition Plat since per the definition of a subdivision,the land being acquired will not be used for"future sale, lease, or building development" §16.01.010; and WHEREAS,all conditions required by Seward City Code §16.01.015, Conditions to plat approval, were met; the property owners within 300 feet of the requested replat were notified, and the property was posted with public notice signage; and NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council hereby recommends Kenai Peninsula Borough approval of the Preliminary Right of Way (ROW) Acquisition Plat for the Seward Airport located in T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known as the Seward Airport, Physical Location, 2310 Airport Road; acquiring and replatting various legals located in Sec 34, 35, 2 & 3, Seward Meridian SW. Section 2. This resolution shall take effect immediately upon adoption. 262 CITY OF SEWARD,ALASKA RESOLUTION 2022-096 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, the 28th day of August 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 263 �PENr� 1 ar r(4r Planning Department o R 0%J` 144 N.Binkley Street,Soldotna,Alaska 99669 • (907)714-2200• (907)714-2378 Fax PRELIMINARY PLAT SUBMITTAL FORM ❑✓ PRELIMINARY PLAT REVISED PRELIMINARY PLAT(no fee required) PHASED PRELIMINARY PLAT[-]PRELIMINARY PLAT FOR PRIVATE STREETS/GATED SUBDIVISION -all requirements of chapter 20,excluding 20.30.210 and 20.50 apply and must be met. SUBDIVISION PLATNAME:must be a unique name,contact staff for assistance if needed. Right of Way-Acquisition Elat for Seward Airpoft ImProvernents PROPERTY INFORMATION: legal description various legals located with portions of: Section,Township,Range Sec 2&3, T1 S, R1 W and Sec 24 &35,T1 N, R1 W,SM General area description Seward Airport City(if applicable) Seward Total Acreage SURVEYOR Company: AK DOT&PF Contact Person: Louise Hoo er, Mailing Address: 4111 Aviation Ave City,State,zip Anchorage,AK 99502 Phone: 907-269-0713 e-mail: louise.hooyer(Dalaslca.gov PROPOSED WASTEWATER AND WATER SUPPLY WASTEWATERQon site✓City❑community WATER[an site Eyity❑community SUBMITTAL REQUIREMENTS A preliminary plat application will be scheduled for the next available ptat committee meeting after a complete application has been received. ❑1-full size paper copy ❑7-reduced sized drawing(11 x 17) a preliminary plat NON-REFUNDABLE submittal fee 400 ❑City Planning Commission minutes when located within city limits or Bridge Creek Watershed District ❑certificate to plat for ALL parcels included in the subdivision n documentation showing proof of signatory authority(partnerships,corporations,estates,trusts,etc.) ❑ALL requirements of KPB 20,25.070(see page 2 for checklist)and KPB 20.25.080 EXCEPTIONS REQUESTED TO PLATTING CODE:A letter,to be presented to the commission,with substantial evidence justifying the requested exception and fully stating thegrounds forthe exception request,and the facts relied upon,MUST be attached to this submittal. 1. 2, 3. APPLICANT: SIGNATURES OF ALL LEGAL PROPERTY OWNERS ARE REQUIRED.Additional signature sheets can be attached.When signing on behalf of another individual,estate,corporation,LLC, partnership,etc.,documentation is required to show authority of the individual(s)signing. Contact KPB staff for clarification if needed. 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' LAYOUT PLAN Boundary Date: 2/12/2021 91 figure: 1 • AMP Action Memorandum 2023-013: Approving the City of Seward 2024 Legislative Priorities and Congressionally Designated Spending List Documents: • Action Memorandum • 2023 Legislative Priorities Guide • PACAB Resolution 2023-003 271 City of Seward Action Memorandum 2023-013 Meeting Date: August 28, 2023 To: City Council From: Norm Regis, Acting City Manager Subject: Action Memorandum 2023-013: Approving the City of Seward 2024 Legislative Priorities and Congressionally Designated Spending List Background and justification: Each year, the City of Seward compiles a list of projects and relevant issues which are key legislative priorities. The City Manager provides this list as a piece of legislation to the City Council to approve those key priorities which the City would benefit from obtaining funding and legislative support. In 2024, the legislative priorities list continues to be of primary importance, given the ongoing likelihood of expansive federal infrastructure fund availability. The comprehensive list is used in order to effectively interact with the City's legislators and lobbyists. Having this legislative priority list available prior to the beginning of the state legislative session in January is valuable in order to engage in a meaningful manner with legislators early on in the process. The legislative priorities for 2024 will also be used to generate the pamphlet which will be provided to various entities during the course of visits to Juneau and Washington, DC. Administration recommends inclusion of the following projects for the 2024 Legislative Priorities: 1. Continued Full Funding For The Construction And Maintenance Of The United States Army Corp Of Engineers Lowell Tunnel Outfall Diversion Structure. 2. Funding for the Construction Of A New Wastewater Treatment Facility. 3. Expansion Of Water/Sewer And Access Infrastructure Which Will Increase Construction Of New Residential Development Throughout City Limits. 4. Full Funding Of The Alaska Department Of Corrections To Return To 100% Funding Of The Operational Costs Associated With Operating The Seward Community Jail. 5. Seward Marine Industrial Center Infrastructure 6. Replacement Of Old Piping With New Ductile Iron Piping Throughout Seward. 7. Funding For The Construction Of A New Public Works Facility 8. Float Extension Project In The Harbor For Z Float. 9. Full Funding And Ongoing Maintenance For The Seward Airport Operated By The State Of Alaska. 10. Funding for the Construction Of A New Harbormaster Office. 11. Funding for the Construction Of A New Public Safety Facility, Including The Fire Department And Police Department. 12. Funding for the Completion Of The Heat Loop Project. 13. Sidewalk Replacement and Refurbishment Throughout The City of Seward During their review of the 2024 Legislative Priorities, the Port and Commerce Advisory Board 272 passed Resolution 2023-003,with a suggested list of priorities. Please see that attached list as well. In addition to the Legislative Priorities, Administration requests direction from City Council on the 2024 Congressionally Designated Spending ("Earmarks") list. We have been advised by our Federal Lobbyist to select 3 to 5 key priority projects for this purpose. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: This list affects all aspects of the Comprehensive Plan and Strategic 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 Fund Balance/Net position—restricted $ Fund Balance/Net position—unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Attorney Review RxYes Attorney Signature: Not applicable Comments: 273 Administration Recommendation eAdopt AM Other: Disposition (Completed by the City Clerk's Office) 274 'r ALASKA cil Tw. ol xyY y + 77- 1 _ e AOF law .q �• .,, .m, _ E .., ice, _ .. • ., ter, " .,y - rlq yyyyffff { YY. oN Not mow INT a w " : • ' � r " r - f aNit - i s. 1� LOCATED AT THE NORTHERN TIP OF RESURRECTION BAY, SEWARD HAS LONG BEEN AN IMPORTANT DESTINATION. In the Alutiiq language, Seward is known as Qutekcak, meaning 'big beach', and served the Alutiiq, Sugpiaq, and other Alaska Native peoples as a meeting area. A deep-water, ice-free port with rail, highway, and air transportation, Seward is easily accessible from Alaska's major hubs and the Lower 48. The wild and stunning natural landscapes attract adventurers from around the world to enjoy the beautiful vistas, hike the stunning trails, experience the diverse wildlife, laskaisa bo in-rule city inSeward, paddle and fish the rich waters, and explore our historic community. Alaska is a horns-rule city in the Kenai Peninsula Borough. Today, Seward is home to a vibrant community with a deep appreciation for the natural environment and local history and culture, with hundreds of thriving Seward bas apopulation of small businesses, robust maritime and tourism industries, as well as valuable 2,600, witb approximately 3,000 educational and research opportunities. additionalpeople residing in surrounding communities just We welcome you to join us in Seward and learn why we say Alaska Starts Here. outside of city boundaries. 2 2023 Legislative Priorities Report 276 Welcome to Seward,Alaska r� nn�if '444 u II • � r f f I, 14. dil Y In AO' t r _ , d BOROUGH GOVERNMENT LOCAL GOVERNMENT TAXATION Seward is located within the Kenai Seward is a city manager form of The city, along with the state of Alaska Peninsula Borough - incorporated in government, governed by a Mayor has no personal income tax. Real/ 1964 as a second-class borough. and City Council who are elected personal property tax within the city by the people of the City. The City is at a low 3.84 mils. The real/personal An elected Borough Mayor serves as property tax outside the city but within Manager is appointed by the elected pro p y y the chief administrator who works the borough is at 4.5 mils with an with an elected 9-member legislative Cperson City Council, along with a additional .5 mils for the Seward/ Bear assembly, on which Seward has one seat. City Attorney and City Clerk. Creek Area Flood Service Board. The Borough is responsible for The Mayor and City Council act The sales tax for Seward is 4%. The area-wide education, solid-waste together as the Governing Body. The sales tax for the Borough is 3%. Seward management, planning and zoning, Governing Body, being the elected also has a 4%bed tax. taxation and assessment. representative of the people, adopts all ordinances and resolutions and Local service area boards provide determines the general goals and hospital, fire, and emergency services. policies of the city. About Our Government 277 2023 Legislative Priorities Report 3 r At On ILI AM 4 p II�Ur� I •SR eal' " a s . � l �� P R CITY MANAGER 2023 GOVERNING BODY Janette Bower, City Manager Sue McClure, Mayor jbower@cityofseward.us Term expires October 2025 Office: 907-224-4012 John Osenga Cell: 907-362-1020 Term expires October 2024 Liz DeMoss Term expires October 2023 Stephen Sowell, Assistant City Manager Mike Calhoon ssowell@cityofseward.us Term expires October 2024 Office: 907-224-4066 Randy Wells Cell: 907-362-4062 Term expires October 2025 Kevin Finch 410 Adams St. Term expires October 2025 PO Box 167 Open Seat Seward, AK 99664 Term expires 2023 4 2023 Legislative Priorities Report 278 About Our Government CONTINUED FULL FUNDING FOR THE CONSTRUCTION AND MAINTENANCE OF THE UNITED STATES ARMY CORP OF ENGINEERS LOWELL TUNNEL OUTFALL DIVERSION STRUCTURE. (FEDERAL) JANUARY 2022: CONSTRUCTION FULLY FUNDED THROUGH THE N FRASTRUCTU RE AN D JOBS ACT. ,:,, 'G $185 MILLION. THANK YOU TO � ALL WHOSE EFFORTS MADE THIS • FUNDING POSSIBLE. The district aims to construct a new flood diversion . system for Lowell Creek in Seward, Alaska. Upgrades �w include a new 18-foot diameter tunnel and diversion dam upstream from the current tunnel; refurbishment to the :; existing tunnel; extension of the outfall by 150-feet to carry creek flow and debris over Lowell Point Road; and _ canopy to protect the tunnel inlet from landslides.The plan also calls for select tree removal that in a flood event could block the tunnel if swept up. .r 4,,., r Y. I Lowell Tunnel Outfall Diversion Project 279 2023 Legislative Priorities Report 5 EXPANSION OF WATER/SEWER AND ACCESS INFRASTRUCTURE WHICH WILL _ INCREASE CONSTRUCTION OF NEW RESIDENTIAL DEVELOPMENT THROUGHOUT CITY LIMITS. (STATE AND FEDERAL) There are two strategic areas that have been identified for utility expansion that would open the door to residential development. Afognak/ Forest Acres is an area on the northwest portion J of town that has over 25 residential lots There are 150 acres of private and public land to the north of the Seward Marine Industrial Complex that can be opened up for development with the expansion of sewer lines. • �i Afognak Acres r' Water, sewer, electric: $2,511,000 • Roadway: $958,000 SMIC — Sewer: $1,090,000 • Lift Station: $100,000 .- Residential bousin has been an ongoing issue in Seward and g g g this project will add lots for immediate construction of mucb needed bousing. FULL FUNDING OF THE ALASKA DEPARTMENT OF CORRECTIONS IN ORDER TO RETURN TO 100% FUNDING OF THE OPERATIONAL COSTS ASSOCIATED WITH OPERATING THE SEWARD COMMUNITY JAIL. In 2013,the City of Seward entered into a 5-year contract Collectively,the community jail Chiefs of Police are working with the State of Alaska to run the community jail in Seward. along with their respective City Managers, Mayors and The amount of the contract at that time was $655,470.00 Councils, and AML/JIA to bring the state to the table to with the guarantee of an inflation adjustment annually not to discuss our collective issues and find solutions so these jails exceed 2%. In 2015,the state amended the contract on the can stay in operation. basis of budget cuts and voided the CPI increase language. The value of the contract dropped to $368,952.00 where it has remained ever since. There have been no CPI increases and there have been no opportunities to negotiate.The state has never addressed employee wage changes, increases to benefit package costs, or increases to the costs of operation. I l Most recently, Seward has attempted communications with ----- the Commissioner of the Department of Corrections and ` have been unable to have discourse with the office. Our calls and emails go unanswered and we have, as of this 2021, been �� shifted to the Probations and Parole office at the state level. The employees in this office admit they are not in a position to negotiate the jail contracts and are not authorized to make contract adjustments. Therefore,the City of Seward is now weighing its options to determine the best course of action moving forward regarding the future of the jail facility. 6 2023 Legislative Priorities Report 280 Water&Sewer Infrastructure and Seward Community,jail SLUDGE REMOVAL FOR THE LOWELL POINT AND SMIC SEWAGE TREATMENT LAGOONS. (STATE & FEDERAL) L................ The City of Seward has a sludge removal program in place for the two separate wastewater treatment plants. These programs are to complete sludge removal every 7-10 years depending on the depth of sludge measured yearly. The very high costs to complete is well out of what City ratepayers can afford. With this project we will also have to install a new liner and replace -•f aeration equipment in the lagoon. Recommended by Senator Murkowski for Congressionally Directed Spending The current liner and aeration equipment are beyond the 30- year life span. We can only fund this program by utilizing grants and loan programs that are available.There is a one-to-two-year lead time to bidding, contracting, and scheduling this work. The successful award offun ding now will allow us to Proceed with the lengthy and importantprocess to get these lagoons modernized and cleaned.Estimated cost is$2,000,000. 446 r k. tl , _. _. y Seward Treatment Lagoons 281 2023 Legislative Priorities Report 7 SEWARD MARINE INDUSTRIAL CENTER SHIPYARD: FILL AND REGRADE INFRASTRUCTURE (2)' The main boat yard area (approximately 20 acres) needs to be slightly lifted The Seward Marine Industrial Center(SMIC) has seen a significant and regraded for drainage during the increase in demand over the last few years since the grand reopening and rainy season and break up so that the with the resident lease taken over by Jag Independent Marine. Every fall boat moving and repair business can the boat yard is completely full with many additional requests for space continue with minimal disruption: and amenities that aren't currently available. The US Coast Guard Fast Response Cutter and support will be located there starting in 2024. Costs: • Regrading:$100,000 To allow the industry to continue to grow and flourish, there are a number ofinfrastructure upgrades needed. LINE EXTENSIONS AND POWER PEDESTALS IN MAIN SHIPYARD 20 ACRE LAND EXPANSION (I): (3)' There is approximately 20 undeveloped acres to the north of the current There is and increasing demand for boat yard and syncrolift area (boundary bounded by Olga, Sorrel, power in more areas of the yard. This Delphin, and Jellison). The city already has had a number of requests for would fund line extensions and 20 use of that land for leases for marine work by companies both currently additional power pedestals in main yard operating and new businesses interested in operating out of SMIC. which would allow more work to be done concurrently. Costs: Costs: • Brusb,fill, top, andgrade:$500,000 • Pedestals(20 x$8,000ea): • 500 Foot Road Extensions ofMustangflve and Morris five. witb $160 000 Pipe Culverts to Support330-ton travel lift:$225,000 Line Installation:$150,000 71, w �1W 7. 4. f s m A .r a- w 8 2023 Legislative Priorities Report 282 City of Seward,AK WATER SERVICE AND FIRE PUBLIC RESTROOMS (5): SECURITY (6): HYDRANTS (4): There is only one, small public restroom Narrative: With the increasing With the boat yard expansion located at SMIC which covers over 90 acres boat working going on and the and growth,the need for water and provides space for over a hundred large presence of equipment and tools, extensions and fire hydrants has vessels. An additional, large public restroom the area needs securing upgrades increased. with shower facilities is needed to service the to help keep theft down and Costs: area for current use and continued growth. business moving without delays. • Water Line(6900LFx$2251 Costs: Costs: IF):$1,500,000 Lift Station Cost and Install:$100,000 Fencing.$250,000 • Fire Hydrants(15 x$5000ea): Extension Lines:$100,000 Security Camera System(20 $150,000 Building and Facilities:$350,000 Cameras and installation on lightpoles):$100,000 n i; 4 �ry v ilp R.1 y ,r f a 1 F-, a 00 v r M HSIMw Y City of Seward,AK 283 2023 Legislative Priorities Report 9 REPLACEMENT OF OLD PIPING ' WITH NEW DUCTILE IRON PIPING THROUGHOUT SEWARD. (STATE & FEDERAL) 4 The City of Seward needs funding to replace existing galvanized and transite (AC—asbestos-cement) water mains. These problem mains are nearly 60 years old and well past their lifespan. The new ductile iron mains will replace and thus prevent the inevitable collapse and failure of the old water mains. With available funding we will replace up to 1000 feet =: A per year to keep safe drinking water for the community. * ' Estimated cost is$4,000,000. v r�. 1 e lI >. INN_. 1 w d 10 2023 Legislative Priorities Report 284 Ductile Pipe-Water Department SIDEWALK REPLACEMENT AND REFURBISHMENT THROUGHOUT �* 4" + v� THE CITY OF SEWARD. yN. (STATE & FEDERAL) Pedestrian Safety is a high priority in Seward as our visitors increase and our sidewalks continue to deteriorate. We have multiple sidewalks needing attention throughout Seward. Securinggrant and ADA funds for sidewalk replacement and refurbishment allows us to address ADA access issues for ramps,parking,and dangerous large cracks and broken concrete areas witb high pedestrian traffic.Estimated cost is$2,500,000. w a m w: w, o Sidewalk Repair&Replacement 285 2023 Legislative Priorities Report 11 FUNDING FOR THE CONSTRUCTION OF A NEW PUBLIC SEWARD PUBLIC WORKS WORKS FACILITY AT A MORE APPROPRIATE SITE. THIS Responsible for operations of the Water MOVE WILL FREE UP SIGNIFICANT LAND FOR RESIDENTIAL and Wastewater utilities,the Street DEVELOPMENT ON THE CURRENT PUBLIC WORKS FACILITY Department,the City Shop, and limited SITE. (STATE & FEDERAL) Municipal Building maintenance. It is our mission to provide the City of Seward residents with prompt service and The Seward Public Works Facility was built in 1965 after the '64 earthquake. maintenance in a cost effective manner. Relocating this facility from downtown has been a desire of this community for The majority of our work consists of over 40 years.The relocation of the facility to a more commercial area with maintenance, repairs, and improvements of adequate acreage for a new equipment warm storage building, a maintenance the City's streets, utilities, and equipment. repair shop, and other public works function are needed. SERVICES The current building is worn out and doesn't fit well in the more residential Maintaining approximately 31 miles of use district. It is too small, very inefficient, and critically inadequate fortoday's paved and unpaved roads. operations and staff. Maintenance of 28+ miles of both water distribution and wastewater collection Thisproject is bigb on the City'spriority list for funding. Completing main lines. this project asap will also free up 32 shall downtown residential lots to Maintaining the City's vehicle fleet. tbepublic and 2villgreatly bell 2vitb the housing shortage in Seward. Providing snow removal and sanding for Estimated cost is$10,000,000. safe roads in the winter. �a f s Current Public Works facility. r Conceptuol exomples of new Public Works Deportment facility. 12 2023 Legislative Priorities Report 286 Public Works Facility FLOAT EXTENSION PROJECT IN THE HARBOR FOR Z FLOAT. (STATE & FEDERAL) There is currently an extensive wait list for vessels in the Seward Harbor. The wait list is a barrier for businesses and economic growth with charter vessels,tugs, barges, personal vessels, and commercial transient vessels not having the places they need to operate. The current wait list has been in existence for over ' 10 years wben this was 1 initiallyplaced on the Capital Improvements List. There has been - movement on this list but the overall list(of over kk 200)has not changed u significantly with the " oldest request currently q y F still waiting since �' ' }' A_p 2014. Estimated cost as 1 � $8,000,000. FWALCRAFT t _.._. JUNE M, L*77'm welcomes / variety / vessels including tbe"""- localfisbingfleet,cbartingfisbingboats; Mustang,tour boats,the US Coast Guard Cutter and more. If If Seward Harbor Z-Float Expansion 287 2023 Legislative Priorities Report 13 FULL FUNDING AND ONGOING MAINTENANCE FOR THE SEWARD AIRPORT OPERATED BY THE STATE OF ALASKA. (STATE) The Seward Airport, operated by the State of Alaska, is a vital lifeline for our community and its safety. With no over-the-road ambulance service, we have regular Medevac flights to get citizens, workers, and visitors the urgent medical care that they need. The US Coast Guard uses the airport regularly for local refueling and transport as well during rescue operations. When there have been avalanches or slides and the road is closed,the airport is our only link for goods and supplies. Less urgent but also important is that it generates significant commerce for our community with businesses in the visitor industry. We are requesting funding forprioritized and regular The Seward Airport is unmanned and operated by the State maintenance. under visual flight rules. Some air service, flight-seeing and charter services ore available. Two paved runways ore utilized with one being 4,240'long by 100'wide, and the other is 2,279' long by 75'wide. Flight time to Anchorage is about 45 minutes. dL- 14 2023 Legislative Priorities Report 288 Seward Airport CITY OF SEWARD e" (GREATER SEWARD AREA) ' ' µ o-- r,r I � .5yk ° r r .r� 1 ,��dw A �« ,1: apA�S� 4�� P� • • ° 4 : r ff � 1x. • y, _ 7. v � '. R ,x �1,}}. ,' \ ,."'mom ,Na«•.:._. a ICI y.. v " `'....�,„ P _ � 9 .-ram' �` .'Rn'C}� ✓,""�� i 'JA a �k : yP - ° ✓ �'P _ "t, " w 71 y ' ti* —'- ,r i i 16 2023 Legislative Priorities Report-City of Seward Gorthwest) City of Seward,AK a: y. i ' r � Y• - � f 0 '1 4 M1 V ,F .Y M ;e. 111 . M1S p � qp P. C yyq. ` ri` r�lA R3 4 yW �4444445}4SSSS 'p•�—��4� '� .�n x# ;� � � �d �.% ' � . , x w -1; ry MIMI k -, . ' City of Seward,AK 2023 Legg j Priorities Report -City of Seward Map(Northeast� 17 rtdf tq �f �� a °' •. At e� y 4 � .fix ' ""` � k"` ' .�,R",�: Y y,-��• _�`--r w �r F V. y�1. MurMi'".'' ZI ' f y T. ,jam w Y e III 18 2023 Legislative Priorities Report-City of Seward(outh) City of Seward,AK e - ■ � - . . . . . � \/ ^©\\�\» d, , | �(� § \, � \G , City y Seward,2& 23JL�%P rape -cyy&wa#y bMr�� a w. 5 �.J�L.�y "k. y1i• A' 'R w � �qq 40 IF 0 City of Seward©2023 a ! City of Seward,AK I P.O.Box 167 410 Adams Street City Hall Building " Seward,AK 99664 1 (907)224 3331 www.cityofseward.us The City of Seward would like to _ t` c - W'} acknowledge the Seward Chamber of Commerce &CVB for their invaluable = f 74 partnership in economic develo1iment and y « '+ `. destination marketing and management. Their work is supported by the thousands of annual visitors to Seward through a portion + - of the 4010 bed tax collected by Seward's * a esteemed lodginS providers, as voted by " the citizens of Seward in the 1995general w October election via Initiative Ord. 95- tom° 001z,which took effect in November 1995, . p and was implemented January of1996. 4. Branding, design, and pbotograpby elements for the 2022 City of Seward . ' Legislative Priorities Report have been v. provided by the Seward Chamber of ' R y Commerce&CVB, as it continues to strive to fulfill its mission to keels Seward the best �.. .w ..'m place in the world to live,work and play. + .* CHAMBER , F- Seward Chamber of Commerce&CVB w PO Box 749 1 2001 Seward Highway Seward,AK 996E-1 1 (907)224-8051 �w - www.3e•,oaid.com " p �ruA he s'Y s r rr u`f,il`is#' �t ftJJJ ukJ " Illlllr I IIII t IIII Y- A L A S K cif WARD, AK - 2022 LEGISLATIVE PRIORITIES Ar M1 " A 9 . � g a; �t� ;;�• err a - CITY OF SEWARD, ALASKA Sponsored by: PACAB PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2023-003 A RESOLUTION OF THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA, PROVIDING INPUT TO CITY COUNCIL ON THE 2024 LEGISLATIVE PRIORITIES WHEREAS, each year, the City of Seward compiles a list of projects and relevant issues which are key legislative priorities; and WHEREAS,the timing of this resolution must be aligned with the budget process (during a budget year), legislative timing, and the timelines associated with production of the guide itself; and WHEREAS, city administration plans to bring a resolution to the City Council in late summer or early fall 2023 to have City Council approve the 2024 Legislative Priorities; and WHEREAS,the Legislative Priorities list is of importance for advocating for projects and priorities which will have economic, social, and broad ranging community impacts; and WHEREAS, the Port and Commerce Advisory Board is tasked with many duties, including projects and initiatives which are of key port, commerce, and development importance. NOW, THEREFORE, BE IT RESOLVED BY THE PORT AND COMMERCE ADVISORY BOARD OF THE CITY OF SEWARD, ALASKA that: Section 1. This resolution will be included in the City Council packet where the City Council begins discussions regarding the 2024 Legislative Priorities. Section 2. The Port and Commerce Advisory Board recommends that City Council considers these recommendations as they evaluate the 2024 Legislative Priorities for the City of Seward. Section 3. The Port and Commerce Advisory Board recommends inclusion of the following projects in the 2024 Legislative Priorities: • Continued full funding for the construction and maintenance of the United States Army Corps of Engineers Lowell Tunnel Outfall Diversion Structure. • Construction of a new wastewater treatment facility. • Expansion of water/sewer and access infrastructure which will increase construction of new residential development throughout city limits. • Full funding of the Alaska Department of Corrections to return to 100% funding of the operational costs associated with operating the Seward Community Jail. • Seward Marine Industrial Center infrastructure. 296 CITY OF SEWARD,ALASKA RESOLUTION 2023-003 • Replacement of old piping with new ductile iron piping throughout Seward. • Sidewalk replacement and refurbishment throughout the City of Seward, to include sidewalk heating. • Full funding for the construction of a new public works facility at a more appropriate site. This move will free up significant land for residential development on the current public works facility site. • Float extension project in the harbor for Z-float and construction of a new harbormaster office. • Full funding and ongoing maintenance for the Seward Airport operated by the State of Alaska. • Construction of a new public safety facility, including the fire department and police department. • Completion of the heat loop project. • Construction of a recreation center. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the Port and Commerce Advisory Board of the City of Seward, Alaska, this 3`d day of May, 2023. THE CITY OF WARD, ALASKA .---tom Bruce Jaffa, Ch i AYES: Woelkers, Atwood, Paquette, Hughes, Jaffa NOES: None ABSENT: Smith ABSTAIN: None VACANT : One ATTEST: Kris Peck Deputy City Clerk , 4F SEyyq4 ,�, o�OAP��T ��•� (City Seal) 10 a r��..����• 297 PACAB Agenda Statement Meeting Date: May 3, 2023 To: Port and Commerce Advisory Board From: Stephen Sowell, Assistant City Manager Norm Regis, Harbormaster Subject: Resolution 2023-XXXX: Providing Input To City Council On The 2024 Legislative Priorities Background and justification: Each year, the City of Seward compiles a list of projects and relevant issues which are key legislative priorities. The City Manager provides this list as a resolution to the City Council to approve those key priorities which the City would benefit from obtaining funding and legislative support. The timing of this resolution must be aligned with the budget process (during a budget year), legislative timing, and the timelines associated with production of the guide itself. In 2024, the legislative priorities list is of primary importance, given the ongoing likelihood of expansive federal infrastructure fund availability. The comprehensive list is used to effectively interact with the City's legislators and lobbyists. Having this legislative priority list available prior to the beginning of the state legislative session in January is valuable to engage in a meaningful manner with legislators early on in the process. The legislative priorities for 2024 will also be used to generate the pamphlet which will be provided to various entities during visits to Juneau and Washington, DC. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Affects all aspects of the Comprehensive and Strategic Plans 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 298 Fund Balance Information Affected Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Water 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: Attorney Review RxYes Attorney Signature: Not applicable Comments: Administration Recommendation eApprove Res. Other: 299 Seward Prevention Coalition Statement of Financial Position As of June 30, 2023 HYPER DAY CARE CITY DONATION TOTAL HYPER TOTAL ASSETS Current Assets Bank Accounts Edward Jones Investments 399,058.19 399,058.19 $399,058.19 FNBA Checking -513.97 -14,230.69 -14,744.66 $-14,744.66 Total Bank Accounts $-513.97 $384,827.50 $384,313.53 $384,313.53 Other Current Assets Workers Comp Prepayment 0.00 0.00 $0.00 Total Other Current Assets $0.00 $0.00 $0.00 $0.00 Total Current Assets $-513.97 $384,827.50 $384,313.53 $384,313.53 TOTAL ASSETS $-513.97 $384,827.50 $384,313.53 $384,313.53 LIABILITIES AND EQUITY Liabilities Current Liabilities Other Current Liabilities Payroll Liabilities $0.00 AK Unemployment Tax 31.40 31.40 $31.40 Federal Taxes(941/944) 422.44 422.44 $422.44 Wages Payable 1,806.09 1,806.09 $1,806.09 Total Payroll Liabilities 2,259.93 2,259.93 $2,259.93 Total Other Current Liabilities $0.00 $2,259.93 $2,259.93 $2,259.93 Total Current Liabilities $0.00 $2,259.93 $2,259.93 $2,259.93 Total Liabilities $0.00 $2,259.93 $2,259.93 $2,259.93 Equity Retained Earnings 2,576.07 448,459.22 451,035.29 $451,035.29 Net Revenue -3,090.04 -65,891.65 -68,981.69 $-68,981.69 Total Equity $-513.97 $382,567.57 $382,053.60 $382,053.60 TOTAL LIABILITIES AND EQUITY $-513.97 $384,827.50 $384,313.53 $384,313.53 Accrual Basis Thursday,July�09023 09:14 AM GMT-08:00 1/1 Seward Prevention Coalition Statement of Activity by Class July 2022-June 2023 HYPER DAY CARE CITY DONATION TOTAL HYPER TOTAL Revenue Total Revenue $0.00 $0.00 GROSS PROFIT $0.00 $0.00 $0.00 $0.00 Expenditures Other Expenses 1,041.32 50.00 1,091.32 $1,091.32 Advertising/Sponsorship 22,928.00 22,928.00 $22,928.00 Total Other Expenses 1,041.32 22,978.00 24,019.32 $24,019.32 Payroll Expenses $0.00 Employee Wellness Benefit 471.48 471.48 $471.48 Taxes 2,934.08 2,934.08 $2,934.08 Wages 33,920.05 33,920.05 $33,920.05 Workers Comp 807.43 807.43 $807.43 Total Payroll Expenses 38,133.04 38,133.04 $38,133.04 Supplies 1,240.20 4,033.11 5,273.31 $5,273.31 Travel 808.52 747.50 1,556.02 $1,556.02 Total Expenditures $3,090.04 $65,891.65 $68,981.69 $68,981.69 NET OPERATING REVENUE $-3,090.04 $-65,891.65 $-68,981.69 $-68,981.69 NET REVENUE $-3,090.04 $-65,891.65 $-68,981.69 $-68,981.69 Accrual Basis Wednesday, Aug k 2023 11:32 AM GMT-08:00 1/1 Seward Electric Utility Ad Hoc Committee Meeting Minutes from August 7, 2023 AGENDA FOR NEXT MEETING 1. Presentation by Mike Hubbard 2. Discuss where can we go to find information on each deliverable. Although Montgomery has done extensive research on each of these deliverables, council would like the committee to come up with their own research. 3. Dlscuss packet provided at last meeting - questions, important pages, etc. 4. Citizen comments 5. Committee comments Meeting called to order at 7pm Pledge of Allegiance Roll Call - Present- Kaluza, Draper, Testarmata, Casagranda (via Phone), Hatfield, Paquette, Dunham, McCracken Absent- Stauffer (resigned) Citizen's comments: McDonald - Worried that no matter what happens in selling, he feels we're giving all our power to an entity outside of the city. Offered an option for a micro nuclear reactor (eVinci from Westinghouse Nuclear) that he said would cover 90% of our energy needs. Not available until 2025. Offered an option to use El Dorado Narrows tides as a source of energy for the city. Sources of Info for each deliverable: Montgomery offered a good place to start would be The Alaska Power Association(APA) with Crystal Linkfast (sp?) and Michael Rovita (sp?) about salaries. Montgomery offered to send contact info for these contacts. We already received salary info for Copper Valley Electric- their CEOs and about 35 employees. CVE is one of the most comparable to Seward, but they aren't on the railbelt like Seward is - the railbelt generates 80% of AK's electric.. CV is not connected to any bigger companies like Seward is (Seward buys power from Chugach) Kaluza looked up Nome and found them to be comparable to Seward - similar size, getting energy from a local wind farm, not buying energy from any other source, but is also billing for water and sewer. Montgomery reiterated that Seward is connected to the railbelt and needs to have a seat at the table with the bigger players in the railbelt (Chugach, Homer) Dunham suggested we start one sheet to compile salaries for all the positions we research are in one shared sheet. It was mentioned that would probably have to go through Kris Peck- check on this? Paquette suggested we each sign up to reach out to each organization so that multiple people aren't calling the same organizations over and over again. Draper sent Peck an email 302 clarifying if we could share a Google Sheet in Drive to compile information with no discussion attached so as to not be in violation of the open meetings act. APA - Draper Golden Valley - Dunham Copper Valley - Paquette Nome - Kaluza McCracken - AK Power and Telephone - may have as large of a service area to get an idea. Have all salary data for next meeting. Montgomery noted that Seward is the only Utility that buys from a larger company. Comparables should be by number of meters, not amount of sales. Need to compare communities that are on the road. It's important that we have a say in the decisions that are being made at the higher level for the railbelt. Being a part of the railbelt comes with some responsibilities that Seward will have that other communities may not have. Street lights on 3rd avenue are paid by the state of AK, street lights in residential areas are billed to the residents that have street lights on their properties (a $5 charge on their bills). Decorative lights downtown are metered off the city hall - the switch is in city hall to turn them on and the meter is out front of the police station. Dunn stated that anyone can get a street light and then will be billed to have it. Ebberson guessed there were maybe 20-25 lights being fed by the power system that may not be metered. Dunham offered that it would be worthwhile to put $100k into a study to see why our line losses our nearly double the national average. Offered Burlingame could help figure out someone to hire for that. There is no plan in place to change out old lights with newer more efficient light posts (not bulbs). Presentation by Mike Hubbard with the Financial Engineering Company (Maine) Oversees the rate study the city is working on. Has been working with the city from 2008. Gives a quick overview of cost of service studies. The parts are: Generation, transmission, distribution, admin costs. Need to look at whether those costs are fixed or dependent on customer base. Most of Seward's costs are fixed - depreciation, interest on debt, maintenance, transmission depreciation, maintenance, etc. All costs are fixed and don't vary by the amount of sales we have (outside of very small variable costs like fuel). Need different rates for different customers - if one large customer uses a small amount of energy all the time is less demand than a large customer that uses a large amount of energy for a short while. The rate study makes sure that the cost"causer' is also the cost payer. Large utilities determine costs based on load research, which is expensive to do, but for smaller 303 utilities like Seward, our rates are based on other utilities' loads. Usually used Golden Valley, Homer, Chugach, or old Muni Llght and Power. Hubbard usually uses MLP to compare Seward even though it's been swallowed by larger utility. There is a process that must be followed to determine rates - the Regualtory Commission of AK is the regulatory body of the large utilities.Seward is not rate regulated because it's so small, but the process is used to regulate rates so that the cost causer is the cost payer and to ensure fairness. Hubbard is investigating 2 scenarios in regards to rates: 1. Keep the utility and update it with consideration of expanded staff with higher salaries, capital expenditures 2. Sell the utility without the salary increase, staff increase no capital expenditures, however rates will still have to be raised. Numbers will be provided fairly soon and all will be brought to the council within the next month or so. Montgomery said that he was hoping to bring the rate study to council in September with a goal of introducing the new rate with the rate changeover to winter rates on October 15th. He had hoped that the organization chart would be a starting point for the committee to see if he has put together an org chart that can be successful and serve the people. Would like to see the council use some of the tools in their tool belt to adjust rates - look at the general fund, etc. His opinion was that rates should be a whole separate conversation after deciding what money would be needed to make this a viable utility. Dunham asked if HOmer electric builds a 5 MW power plant in the middle of the Seward transmission line at Grant Lake wouldn't they be paying Seward to transmit energy on our lines. If Seward doesn't sell to them, Homer will need to pay to use the transmission on Seward's line which will bring in more revenue to the city. Hubbard countered that he wouldn't see that as being a huge amount. Kaluza asked how the future might look in regards to a demand in sales with the increase of heat pumps. HUbbard is using 2022 sales to see the increase, which he says is much lower than 10 years ago. In the long term, Seward will see an increase in sales, but it won't happen in the next year or so. Montgomery said that the current rate study is onlay looking forward for 3-4 years. Hubbard suggested that every 2-3 years the rates should be looked at for a small utility. McCracken asked what a normal fee for a study of this size and Hubbard answered that his budget depends on how many trips he has to make to present to Seward council, but it's around $30-40k. Montgomery clarified the budget is around $50k, which included 2 trips to Seward. Other firms are much higher. 304 Kaluza said the math in his head for the bond sale would be an increase of about 1.3 cents to each rate payer. Hubbard responded that there's depreciation that has to be recovered as well as inflation that has soared over the past 2 years, so that was incorrect. Montgomery also clarified that construction season brings a big increase in materials to buy and the cost of those materials has increased almost 3x after the pandemic. Seward's total sales are approximately what they were in 2015. From 2012-2022, 2012 was the highest revenue (because of the coal terminal?) Paquette asked if the dip might be explained by what the sea life center did with using heat pumps. Kaluza mentioned the old utility manager mentioned a lot of efficiency upgrades that were made in the 2000- teens. Rieirson asked if the money tranferred to the general fund was included in his analysis and Hubbard responded that yes it was. Montgomery replied that the city has a formula for setting the rate that the city charges the utility from the total revenue. Paquette wanted to reiterate that the expenses for the utility are fixed, so we have to get the numbers to see what needs to be spent to fix the utility so that it works. MOntgomery responded that we're playing catch up because money wasn't set aside to do maintenance, which kept Seward's rates artificially low. We start making payments on the bond payment in 2024. We shouldn't be so focused on rates but instead figure out what it will take to make this a viable utility. Worry about rates later. Rieirson said he struggles listening to conversations from the professionals and was wondering why no one has mentioned that our utility has all of these needs when we're getting rate studies every 2 or 3 years. MOntgomery replied that he was told by Jack Anderson and the Seward linemen when he started to drive out Nash and check out the poles and the dated equipment in the substations. Dunham asked once these projects are wrapped up if our utility would be in good shape? Montgomery said our transmission system coming from Moose Pass is in great shape, but there are some parts of the distribution system that need work and replacement. Generators are in great shape - although they're older, we don't ask a lot of them as far as use, so they're in great shape. The fact that we can produce 15.6 MW when we lose power from Chugach is huge. Montgomery stated the nuclear is still 12-15 years out before it starts being viable. Rieirson said there's a gap between everything running just fine to the "wheels coming off the bus" so quickly and its unclear to the citizens how that happened so fast. McCracken asked if the 2 million dollars that was sent to the city was used to pay down a lot of the bond and maintenance, would that take care of the increase that's being proposed. Hubbard responded that it would help a lot but probably not take care of the expanded staff that would be needed to make the utility viable. Also, the city then would have to recoup that money from taxes, water rates, sewer rates, etc. McCracken asked if it would be fair to say that outside city limits is generating about 1 million dollars that is being "dumped" into the general fund. Hubbard agreed. 305 Tustarmata asked Hubbard to explain more about using ML&P as a study for Seward when it didn't even exist anymore. Hubbard explained that he needed to look at the different load patterns of small general service, harbor, large general sercive, etc. What is needed is to put meters on each of those customers to monitor each rate payers load patterns. This is an expensive process, so the research that was done for ML&P is similar to Seward in that it isn't very spread out, a smaller customer base. Those load patterns from ML&P haven't changed much from the last 2 rate studies, so he has continued to use the same load studies for Seward's rate. He said there is nothing else that is close to comparable to Seward and his calculations seem to be reasonable. Kaluza asked if Hubbard knows what Sewards average peak is - he responded that yes he does. Hubbard clarified that Montgomery has come up with his estimate of what was needed to make the utility is viable and our committee is tasked with seeing if that estimate is accurate or not. His rate study will be based on Montgomery's estimate -our reasearch may be different. Council member Barnwell asked how Seward compared with rates of small villages in AK. Montgomery wishes that he would have pointed out that some of those communities are getting subsidies that Seward doesn't qualify for. Draper asked for a run down on the position descriptions for new positions that Montgomery was requesting. Suggested that when committee calls around to all the organizations, to ask them how they recruit. Business Manager- Succession planning - could move into the GM role. Business Operations - program administration, billing functions, community information (posts on FB, etc), representing Seward on the railbelt organizations. Cyber Security - may be outsourced, but still needs to be budgeted for. Dustin (City IT) said he doesn't think his organization has the capacity to take it on. He will be here next meeting. Liason - would be taking part in the meetings highlighted on the calendar. Write press releases, reports to share with city manager, council, etc. Lineman - definitely needed, but apprentice could go. Dunham asked why we couldn't automate the generators to eliminate this position, but Montgomery said that he's gotten pushback in the past. In the future, there won't need to have 2 operators and an apprentice. Testarmata suggested that we make a presentation to the council about our findings on line loss, remote start operations and power factor. Montgomery said we should share our findings with council if we think it's in the best interest of the utility. Dunham asked if we had gotten the budget for 2023, Montgomery said it's available on the website. Cost estimate for vehicles, etc should be in the budget. Deliverable 2-4 should be available in the budget. 306 Kaluza mentioned that he wanted to see what the workload for an additional lineman would be. Montgomery said he would provide that for the next meeting. Testarmata said it's important to distinguish between wants and needs. Does Seward really need a representative for little Seward to play with the big guys who aren't going to listen anyways. ALso questioned why we have all these natural resources we aren't using, but figuring out how we can be more independent and not have to rely on outside sources. What is the vision of Seward for the next 100 years. Agenda for Next meeting 8/21 1. Curtis Thayer- Executive Director of the AK Energy Authority - Importance of Bradley Lake and the role that Seward plays. Give committee an understanding of the types of commitments Seward has to the organizations. 2. Look at the first deliverable 3. Citizen's Comments 4. Committee Comments 307 August 202 r� Aug We Th3 September ✓{ SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9 10 11 12 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 FRI DAY SATURDAY Jul 30 31 (8:00pm 1 2 3 4 5 pm P&Z eeting P&Z WS Cemetery mmediately after meet' 6 7 8 9 10 11 12 7:00pm Seward 6:00pm Electric Utility Rescheduled- Ad Hoc HPC Work Com m Session to 7:00pm Rescheduled- HPC Regular Meeting to 13 14 15 16 17 18 19 7:00pm CC Mtg 6:00pm P&Z (Council Work Session (Council i Chambers) 20 21 22 23 24 25 26 7:00pm Seward 6:00pm HPC 6:00pm 55th Electric Utility Work Session Sister City Ad Hoc (Rescheduled Community Potluck 7:00pm HPC (Branson Regular Meeting 27 28 29 30 31 Sep 1 2 5:30pm CC Work Session 7:00pm CC Mtg Council Calendar 1 8/22/2023 4:22 PM 308 September 2023 September 2023 October 2023 SuMo 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 10 11 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 FRI DAY SATURDAY Aug 27 28 29 30 31 Sep 1 2 3 4 5 6 7 8 9 Holiday- Labor 7:00pm P&Z 12:00pm PACAB Day 7:00pm Seward Electric Utility Ad Hoc 10 11 12 13 14 15 16 5:30pm CC Work Session (Electric Utility Rate Study) 7:00pm CC Mtg (Council 17 18 i 9 20 21 22 23 7:00pm Seward 6:00pm P&Z 12:00pm PACAB Electric Utility Work Session WS Ad Hoc (Council 24 25 26 27 28 29 30 7:00pm CC Mtg Council Calendar 2 8/22/2023 4:22 PM 309 October 2023 October 2023 November 2023 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRI DAY SATURDAY Oct 1 2 3 4 5 6 7 7:00pm Seward 7:00pm P&Z 12:00pm PACAB Electric Utility eetong Ad Hoc 8 9 10 11 12 13 14 7:00pm CC Mtg (Council 15 16 17 18 19 20 21 7:00pm Seward !6:00pm P&Z Holiday-Alaska Electric Utility Work Session Day Ad Hoc (Council 12:00pm PACAB 22 23 24 25 26 27 28 7:00pm CC Mtg 29 30 31 Nov 1 2 3 4 7:00pm Seward Electric Utility Ad Hoc Council Calendar 3 8/22/2023 4:22 PM 310