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HomeMy WebLinkAbout11132023 City Council Packet Seward City Council Agenda Packet TOYOTA�o a��»n- ♦�© SHARE PP I an ,c ,w Photo by Kat Sorensen MondovNovember 13 2023 > > City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska An-AmF.�.e3.i CITY COUNCIL MEETING AGENDA City Council Chambers, 410 Adams Street Please silence all cell phones and devices during the meeting Mayor Sue McClure Council Member Kevin Finch City Manager Kat Sorensen Vice Mayor John Osenga Council Member Robert Barnwell City Clerk Kris Peck Council Member Mike Calhoon Council Member Julie Crites City Attorney Sam Severin Council Member Randy Wells Monday,November 13, 2023 at 7:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE A. Proclamations 1) Proclamation for Seward Seahawks Girls Cross Country Team.....................Pg. 5 2) Proclamation for Veterans Day............................................................Pg. 6 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 Consent Agenda passes all routine items listed under Item 7. Consent Agenda items are not considered separately unless a council member requests an item be returned to the Regular Agenda.) 6. SPECIAL ORDERS, PRESENTATIONS,AND REPORTS A. Proclamations and Awards (see above) B. City Manager Report...........................................................................Pg. 7 C. City Clerk Report..............................................................................Pg. 43 D. City Attorney Report ..........................................................................Pg. 44 E. Other Reports and Announcements 1) Kenai Peninsula Economic Development District(KPEDD) Quarterly Report by Tim Dillon F. Presentations 1) Presentation by Haley Johnston on Alaska Trails 2) Presentation by Shauna Potocky on Land Exchange and Conservation Easement Seward Airport City Council Meeting Agenda November 13,2023 11 P a g e 7. CONSENT AGENDA(also marked with an asterisk) A. Minutes of Preceding Meeting 1)*Approval of the October 23, 2023 City Council Meeting Minutes.................Pg. 46 B. Introduction of Ordinances—None C. Resolutions 1)*Resolution 2023-121: Authorizing The City Manager To Purchase A Replacement Vehicle In The Form Of A Chevrolet Silverado Crew Cab 4X4 Chassis With A Flatbed And Crane To Replace A 2015 Ford F350 4X4 Truck With Crane For The Harbor Department And Appropriating Funds In An Amount Not To Exceed $83,186.31.................................................................................Pg. 51 2)*Resolution 2023-122: Authorizing The City Manager To Enter Into A Purchase Agreement With LiftOff LLC For A One-Year Renewal Of The City's Microsoft 365 Licensing Subscription, In The Amount Of$46,000.80..............................Pg. 63 3)*Resolution2023-123: Authorizing The City Manager To Purchase Four (4) 2024 Chevrolet Tahoe Police Package Vehicles From Swickard Auto Group Under The State Of Alaska Fleet Vehicle Contract, With Associated Upfitting And Police Specific Equipment, Radio Equipment, Spare Wheels, and Studded Tires hi An Amount Not To Exceed A Total Cost of$311,838.20....................................................Pg. 73 8. PUBLIC HEARINGS(Public hearing comments are limited to five(5)minutes per person.After all speakers have spoken, a person may speak for a second time for no more than one(1) minute.) A. Ordinances for Enactment—None B. Resolutions Requiring Public Hearing 1) Resolution 2023-119: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement with 4JBC, LLC for the Sale of 18,432 square feet of Lot 2 Block 4, Fourth of July Subdivision, Seward Marine industrial Center, Kenai Peninsula Borough,Raibow Replat,Plat No.2015-14 Seward Recording District,Third Judicial District, State of Alaska in the Amount of$65,000........................Pg. 96 2) Resolution 2023-120: Amending The 2024 Electric Rates Tariff To Incorporate Recommendations From The 2023 Rate Study To Set Electric Rates At A Level To Meet The Utility's Revenue Requirements Over The Next Three Years...........Pg.185 9. UNFINISHED BUSINESS—None 10. NEW BUSINESS A. Resolutions 1) Resolution 2023-124: Supporting The Brown & Hawkins Fire Suppression System Project For The Historical Building Located At 205, 207 & 209 Fourth Avenue And Recommending The City Manager Accept And Administer Federal Funding Provided By The Alaska Department Of Natural Resources....................................Pg. 279 City Council Meeting Agenda November 13,2023 2 1 P a g e 11. INFORMATIONAL ITEMS AND REPORTS (no action required) A. Boards and Commissions Minutes 1) Planning& Zoning Commission a. Approved October 3, 2023 P&Z Meeting Minutes..............................Pg. 306 2) Port & Commerce Advisory Board a. Approved October 4, 2023 PACAB Meeting Minutes...........................Pg. 311 B. Other Items 1) Report on Alaska Small Business Development Center 3rd Quarter...............Pg. 314 12. CITIZEN COMMENTS (There is no sign in for this comment period. Time is limited to five(5) minutes per speaker.) 13. COUNCIL AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS 14. EXECUTIVE SESSION—None 15. ADJOURNMENT City Council Meeting Agenda November 13,2023 3 1 P a g e PROCLAMATION WHEREAS,on September 30fl',2023,the Seward High School Girls Cross Country Team placed first in the Region Meet on their home course, having 6 runners place in the top 8 places; and WHEREAS,on October 6,2023, at the State Meet,where only the top 5 runners on a team score, the Seward team placed within the top 12 of 68 places, including a 3rd place podium by Haley Ingalls; and WHEREAS, in a cross country meet, lower points are desired and placement can be determined by a couple of points,the Seward team scored 34 points with a dominant performance over second place Grace Christian, which had a score of 57 points; and WHEREAS, Coach Rachel Dow was named 2023 Region III Coach of the Year; and WHEREAS, the Seward High School Girls Cross Country Team successfully defended their Division II State Title. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby congratulate the Seward Seahawks Girls Cross Country Team and Coaches Rachel Dow and Ronn Hemstock and commend the team for their second Division II State Championship. Dated this 13' day of November 2023 The City of Seward,Alaska Sue McClure,Mayor p yy i 1k - li, iq �M16 w. Coaches: Rachel Dow and Ronn Hemstock (not pictured). Runners: Maren Bickling, Katie Van Buskirk, Hailey Ingalls, Stella Dow, Maddie Haas, Indigo Leslie, Selah Brueckner, Lucy Bamford, and June Ingalls (not pictured). 5 PROCLAMATION WHEREAS, since the birth of this great nation, millions of Americans have answered the call to defend our American ideals of freedom and democracy throughout the world; and WHEREAS, Veterans Day is a time to reflect on the service and sacrifice of all generations of these veterans who have given selflessly of themselves to defend our freedoms and our American way of life; and WHEREAS, the origin of Veterans Day began with the Armistice on June 28, 1918, also known as the Treaty of Versailles, which formally ended the hostilities of World War I; and WHEREAS, we gather on the eleventh hour on the eleventh day of the eleventh month, as we have every year since November 11, 1919 to express our gratitude and appreciation for the selfless service of our veterans to preserve our rights, liberties, and privileges; and WHEREAS, our men and women in uniform have been the bearers of a proud military tradition of selfless service in both peace and war that has been passed down from generation to generation for more than two centuries; and WHEREAS, our community has a fundamental obligation to acknowledge the contribution, courage and distinction in the face of adversity the unwavering commitment to America of our veterans of all wars; and WHEREAS, it is essential that we salute those who have fought to defend our nation; never forgetting the brave men and women who have made the ultimate sacrifice to ensure freedom for all people; and WHEREAS, on Veterans Day, we pay tribute to our veterans from the humble beginnings of this great nation and their families;to honor their selfless service with a renewed determination of commitment to keep the promises we have made to all who answered our country's call: NOW THEREFORE, I, Sue McClure, Mayor of the City of Seward do hereby proclaim November 11, 2023, as VETERANS DAY and do call upon all citizens of Seward to honor all Veterans for their enduring commitment to preserve the hi hest freedoms and ideals on which America was founded. MV Now� Dated this 13t" day of November, 2023 THE CITY OF SEWA", ALAS" ARMY MARINE CORPS NAVY ,,AIR FORCE =-''PACE FORCE Sue McClure, Mayor COAST GUARD rLL 0` City Manager's Report— November 13, 2023 Kat Sorensen Mayor McClure and Council Members, Obihiro Sister City Visit: I spent 10 days travelling to our Sister City in Obihiro, Japan. Our delegation saw a warm welcome from our sister city, and had an amazing time seeing what their city and community is like. We'll give a full presentation at the next council meeting. Below is a photo of me presenting the city's gift to the Mayor of Obihiro. The gift is an original painting by J. Leslie. Since returning to the office on Tuesday, I've been catching up on the past two weeks. And a big thank you to the team on holding down the fort while I was gone. Some takeaways from the CMR report attached: • Parks and Rec's Halloween Carnival saw about 400 attendees! • Doug and Norm attended the USACE conference in Denver with the full Army Corps of Engineers group. They are still on schedule to have the project bid out by late 2026 with construction of the new tunnel starting in 2027. • Seward's Angel Tree Program is up and running. Visit sewardfire.com/angeltree for more information If you have any questions please feel free to reach out to me, my number is (907) 224 4012 and city cell phone is 907 362 1020. My email address is ksorensen(a)cityofsewa rd.net. 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 SHOP 1 V03/2023 CONSTRUCTION Repair&Maintenance to Volvo L90F Loader.Sole Soure:CMI only vendor to work on Volvo 5.103.90 MACHINERY INDUSTRIAL Equipment.Two estimates attached for complete PO LLC EMERGENCY 10126/2023 EVERBRIDGE INC Nixel 2023-2024 Subscription 6.090.00 PREPAREDNESS TYC 10/10/2023 PREMIER CONSTRUCTION B&GC Flooding Damage Repair.Responsible parties Insurance will reimburse the cost of 6.500.00 LLC repairs.Reached out to 2 other companies via email for assessments.Premeir was the only company to respond and provided a proposal. CAMPGROUNDS 10/13/2023 RJ THOMAS 24 Picnic Table Frames and 4 Charcoal Grills for campgrounds. 11,864.40 MANUFACTURING 7 Assistant City Manager Jason Bickling Emergency Operations Plan: We have a group that is working on reviewing and revising our EOPs for each facility. They have not been updated for a number of years and some facilities don't have them. We will be creating and revising them for consistent response but customized for each facility. They had their first meeting on November 7tn to make these revisions and get plans put in place. Once the plans are finalized, staff will be trained, and drills will be regularly practiced. AKRR: The Mayor and I met with Christy Terry on October 27t" to get an update from the Railroad including plans for the freight dock and work on train bridges over the winter. She will be coming on January 22nd to give a more comprehensive report to City Council. Public Works Facility: We are still working towards the 65% design on the Public Works Facility. This should be coming before you at the beginning of 2024 for approval to move to 95%. Heat Loop Project: As part of the DOE grant moving forward, the National Renewable Energy Laboratories Team and Andy Baker with Your Clean Energy came to Seward October 31 — November 3rd for a site visit. They set up monitoring equipment, collected additional site information, and met with the Ad Hoc Committee. I spent a fair amount of time (which counts towards the City's in-kind contribution) managing logistics and getting building and energy information for them. *Board and Commission Attendance Tracker is included in this report. 8 \ - oo � � r-4 \ oz rI- z \ 000 - o \ Q CD ¢¢ \ \ \ \ r CD 22 \ \ \ \ 3 \ z « zz 2¢ \ \ \ \ z \\ 2 \ \ \ \ \ / CDz z z z - u »u »u »u »o 0 0 $ $ »$ »$ »$ » zzz » \ \ / m m 22 \ >2> 2 2 \ \ \ \ \ z � « o $ o $ $ $ $ $ $ $ $ z ¥ z ¥ ¥ ¥ ¥» » » ¥ \ \ \ z z ¢ 2 \ \ 2 \ LO \\ >2 \ \ \ � © zm © $ $ $ $ o $ u u » » » » z » »» »$ »$ »$ \ \ / Ln 3 \ \ 2 \ \ \\ \ \ \ \ \ \ \ \ \ \ \\ \ \ \ \ \ \ 4 © 2 \ - $ m � � r z � CD I \ \ \ \ \ ¢2 \ \ 2 2222 \ � E 2 / 23m 23 $ o $ $ $ r u o $ o o = $ $ $ $ $ » z » » » »z » zz » » » » » § u § § c % e % \ % / I � EN I \ _ _ § / � 0m 2 § \ � u � mCY = \ \ = 7f / ) £ k # # ■ tE = / � w3o ■ = �£ BB % E � ■ 22222mBB caCL / / / 2 / /$ 22 / i / 2 ƒ 3JJ ± \ 22 City of Seward - Human Resources Manager Report Staffing Information # of Department Job Title Positions Filled Administration City Manager 1 1 Assistant City Manager 1 1 Human Resources Manager 1 1 Executive Assistant 1 1 TOTAL: 4 4 Finance Director 1 1 Deputy Finance Director 1 0 Senior Accountant 1 1 Accounting Technician III 1 1 Accounting Technician II 1 1 Accounting Technician - Utilities 2 1 Accounting Tech Payroll 1 0 Accounting Tech Accounts Payable 1 1 TOTAL: 9 6 Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 3 Public Works Technician 1 1 Shop Foreman 1 1 Water and Wastewater Foreman 1 1 Water and Wastewater Operator 3 3 Building Maintenance Technician 2 1 TOTAL: 13 12 Community Development Director 1 0 Planner 1 1 Executive Assistant 1 0 TOTAL: 3 1 Electric Director 1 0 Operations Supervisor 1 0 Field Engineer 1 1 Executive Assistant 1 1 Lineman 4 4 Plant Operator 2 2 TOTAL: 10 8 Fire Department Chief 1 1 Deputy Chief 1 1 Executive Assistant 1 1 Building Official 1 1 Building Fire Inspector 1 1 Firefighter/EMT 1 1 Seasonal - Summer Laborer 1 1 10 # of Department Job Title Positions Filled TOTAL: 7 7 Harbor Harbor Master 1 1 Deputy Harbor Master 1 1 Office Manager 1 1 Executive Assistant 2 2 Harbor Worker II 6 6 Harbor Worker III 1 1 Seasonal - Summer Laborer Part-Time 1 0 Seasonal - Summer Laborer Full-Time 1 0 TOTAL: 14 12 IT Director 1 1 Senior IT Tech 1 1 IT Technician 1 1 TOTAL: 3 3 Library Director 1 1 Assitant Library Director 1 1 Library Technician 1 0 Curator 1 1 Library Aide 1 1 Seasonal - Aides 2 2 TOTAL: 7 6 Police Chief 1 1 Deputy Chief 1 1 Sergeant 1 1 Patrol Officer 7 5 Patrol Officer not funded 1 0 Executive Assistant 1 1 Corrections Sergeant 1 1 Corrections Officer 4 1 Corrections Officer not funded 1 0 Dispatch Supervisor 1 1 Dispatcher 5 4 Animal Control Officer 1 1 Animal Control Officer Assistant 1 1 DMV Clerk 1 1 TOTAL: 27 19 Parks & Recreation Director 1 1 Deputy Director 1 1 Executive Assistant 1 1 Campground Coordinator 1 1 Program Coordinator 1 1 Recreational Assistant 1 1 Maintenance Technician 1 1 Seasonal - Summer 9 0 Seasonal - Winter 8 3 TOTAL: 24 10 11 # of Department Job Title Positions Filled City Clerk's Office City Clerk 1 1 Deputy City Clerk 1 1 Executive Assistant 1 1 TOTAL: 3 3 Total number of authorized positions: 124 Total number of filled positions: 91 12 Community Development Department Courtney Bringhurst ➢ The Planning and Zoning Commission had a meeting on November 7th. The preliminary plats for 605 Sea Lion Ave, separating the electric building from the ballfields, and 905 Sea Lion Ave, separating out the 1.4 acres of land to be sold to Seward City Tours was on the agenda as public hearing items. The 2023 Update to the Municipal Lands Inventory and Management Plan was also on the agenda. ➢ The Planning and Zoning Commission has a scheduled work session on November 21 st ➢ AWR Engineering has begun work on the Flood Mitigation Assessment Project for Scheffler Creek. They will be analyzing the effect on flooding with four mitigation solutions: 0 1) Raising the elevation of Barwell Street and increasing the size of the culverts on Barwell Street and Phoenix Road 0 2) Raising the elevation of Dairy Hill Lane 0 3) Improve conveyance of flood waters across Phoenix Road by adding cross culverts and drainage ditches o 4) A combination of the above solutions ➢ We are reviewing and assessing aspects of code that need to be tightened or updated. ➢ We are continuing to work on platting pieces for the new Public Works Facility. ➢ The CUPs, both current and past, have begun to be reviewed for status and compliance. 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. ➢ Our long-term Temp finished scanning and archiving all of Community Development's documents and is now working on scanning documents for the Finance department. ➢ 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. 13 GIS Report: - Selena has starting working in her contract position as our GIS technician. - Selena will be working with the Electric department to start the process of creating better mapping of the electric lines in Seward. She is also helping the Electric department with the GIS for the renewal of their Forestry permit. - She will also be working to update the cemetery map to include the columbarium spots that were added this past summer. 14 Electric System Director Rob Montgomery Infrastructure Project (Ongoing) — Substation refurbishment work at the Fort Raymond Substation is winding down in anticipation of winter. Both large transformers have been installed inside the substation. The Electric Department is continuing to work with its engineering contractor, Dryden & LaRue, to coordinate remaining work and order remaining materials for the Lawing Substation near Moose Pass and the Spring Creek Substation on Nash Road. Work on the Lawing Substation will get underway in early spring and work at the Spring Creek Substation will begin in late spring or early summer. 2023 Rate Study (Ongoing) — The Financial Engineering Company has completed its work on the 2023 Rate Study and recommendations will go to City Council in November. New customers rates will go into effect on January 1, 2024. Tree Removal Eagle Lane—The Electric Department was contacted by a customer regarding a few "danger"trees adjacent to the distribution line running along Eagle Lane off Herman Leirer Road. One large dead tree was within just a few feet of the line and needed to be removed immediately. I was accompanied by the foreman of our tree clearing contractor, AK Tree Service, and we met with the property owner to coordinate the removal of the trees, which was done the week of October 23. Bird Deflectors— On October 24, I met with two customers at Preacher's Pond to discuss the recent death of a Blue Heron that had flown into power lines on the north side of the pond. They requested the use of deflectors on those lines to divert birds away during flight. I agreed with the customers that the use of deflectors in the location may be helpful, so line crews have been directed to install the deflectors once they wrap up their construction season efforts. • Customer Job Orders — Between October 15 and October 29, electric department personnel processed 10 job orders with another four in the queue ready for the crew and five others waiting for customers to complete work on their side of the meter. For the year, crews have completed 26 job orders. Crews also conducted underground locates on 24 requests. Department Overtime—Total overtime hours for the 4-man line crew, 2 plant operators and field engineer: Infrastructure 56 hours; Other 79 hours. 15 Los, -.Udal*�--A CMR Finance Department Sully Jusino Finance Director Mission Statement: Valuable Objectives: To provide the highest level of services responsive to our We built trust with all stakeholders through responsible community's expectations and to enhance the quality of stewardship of public resources with integrity, life and economic vitality. accountability,and respect. Utility Department: Working with Utility Assist. on implementing and mapping the City billing process, Utility Assist went live on 9.11.23, and the conversion process of the outsourcing is moving smoothly. Finance is working with the Electric department on training on meter reading, addressing and resolving old problems. We are currently working on the FY22 Audit finding list. The finance department is assisting with information and analysis of the ongoing water/sewer rate study as well as with the Heat Loop Project. Utility Assist will work with Cornerstone on the collection program to collect old outstanding balances. Utility Assist. is working on the Net Meter billing implementation; the targeted date will be for December billing, we will notify our Net Meter customers. The finance department and the Carmen Jackson team continue to work on utility billing issues and resolve old problems identified through internal audits of the City. Staffing: The finance department continues to struggle with retaining staff. Anyone interested in any open position with Finance is encouraged to apply through our City's website at Employment Opportunities I Seward, AK(cityofseward.us) 16 Los, _.UdVI*�__A CMR Finance Department Sully Jusino Finance Director City Code and Fiscal Manual updates: A Fiscal Manual has been created for the City using best practices, the current municipal code, the city charter, and state regulations. The City Manager, Finance Director, and CJCPA are currently reviewing the draft. Of the drafted ten (10) sections, seven (7) have been reviewed and approved by the city currently working with Title 14 with other departments' heads for review and analysis. Carmen Jackson Update: The Carmen Jackson team continues to work closely with the finance department to assist with the Util-Assist transition and directly assist with the billing process until the outsourcing is complete. Additionally, CJCPA continues to provide ongoing accounting services on a daily basis and continues to assist with high-level finance department operations. The Carmen Jackson team, the finance department, and the administration continue to review the fiscal manual and portions of the City code with financial implications as part of the overall updates to policies and procedures. 17 Seward Community Library & Museum Bailey Sayler MUSEUM WINDOW DISPLAY Early Alaska Railroad The summer "Windows of History" display features a history of the early Alaska Railroad. Learn about the railroads beginning as the Alaska Central Railroad in 1903, through its ups and downs until it was purchased by the federal government in 1915, and its official start as the Alaska Railroad Company in 1923 when President Harding came to Alaska to drive the golden spike at Nenana. On view are an assortment of early railroad photos from the Resurrection Bay Historical Society. Thank you Museum Volunteers We would like to thank our amazing museum volunteers, from the Resurrection Bay Historical Society and the Seward Community Library Association, for all the hours they put into caring for the museum and its collection. In 2022, both organizations combined contributed over 660 hours to volunteering, with RBHS having 624 of those hours. We would also like to thank local Boy Scout Troop 568 for volunteering 56 additional hours with RBHS to complete other large museum tasks. Play n Chat Every Tuesday and Thursday, Bloom brings arts n crafts, story time, and play time for our younger crowd. Upcoming Events 4 After school tutoring Tuesday— Friday. Math, Spanish, and Language Arts help. Hvery Friday we have a Movie Matinee starting at 3:30 p.m. OEvery Wednesday at 3 pm at the library, Come learn the Japanese Alphabet! 0 November 25t"- Christmas Lighting at 6 pm and crafts with hot cocoa to follow at the library. Saturday Storytime: Join us for Story-time and an activity every Saturday at 11:00 a.m. 18 Past Events On October 24, our library threw a spectacular bash to honor the extraordinary volunteers hailing from the fantastic Garden Fairies, the Resurrection Bay Historical Society, and the Friends of the Seward Community Library (SLCA). These volunteers are the real MVPs who sprinkle fairy dust on our library and museum, making them sparkle with success. Without their magic touch, we'd be lost in the stacks! The Solar Eclipse shindig was a total blast, drawing in an astronomical 60 cosmic enthusiasts to witness the mind-blowing Space Challenger Exhibit at the AVTEC Gym. This out-of-this-world event was fueled by the rocket power of sponsorship from the Seward Community Library Association and the Seward Community Foundation. Library Winter Hours starting October 1st: f . Tuesday— Friday 10 a.m. — 6 p.m. Saturdays 10 a.m. —5 p.m. -' Museum Winter Hours '� �° Closed Passports We are currently taking passport appointments for new passports but not renewals. Please call 907-224-4082 for appointments. i 14 a r " 4 S W�ryrp a O 0 a Why Learn the Japanese Alphabet with Us? • Unlock a New World:Dive into the fascinating world of Japanese culture and language by exploring its unique writing system. • Fun and Interactive:Our workshop is designed to make learning the Japanese alphabet enjoyable and engaging. What you will learn • Simple Vocabulary:Start building your Japanese vocabulary from day one. • Japanese Alphabet:Be able to spell your name by the end of the program. Who Can Attend: • Beginners and enthusiasts. • No prior knowledge of Japanese required. What's Included: • Workshop materials • Hands-on practice. • Expert guidance. Limited Seats Available!Reserve Your Spot Today! Classes held weekly on Wednesdays @ 3pm,_ beginning October 25th. For more information call Seward Community Library&Museum @ 907-224-4010. Don't miss this opportunity to embark on a fascinating journey into the world of the Japanese alphabet!Join our workshop and start your Japanese language adventure today. 20 SPRD CMR Sports and Recreation: Sports and Rec. has had a busy month of October! Sports Leagues are going strong through the October and looking good to continue into the month of November. The Photography Contest closed Oct. 30th with 40 submissions! We are excited to announce winners at the Winter Art Night with Res. Art on November 17th. The Halloween Carnival had around 400 Seward residents attending and all were very excited and grateful that the whole event was free! Park and Bark is slowly building attendance and we decided to continue it in November to allow for more attendance build-up. We had a booth at the AVTEC Job Fair while stirring up some interest in our summer seasonal positions -the event inspired us to create new booth material for future events. We partnered with Gateway hotel to offer a two day Cribbage event with at around 10 players each night. We are very excited for an even busy November- - check out the events below! Carnival Photos Ak a-"r id AµIyYyr�_ i 1 Daily Activities: (November) Monday: Recreational Volleyball: 5:30-7:30pm Tai Chi Energy Series 5:45pm - 6:45pm Tuesday: Open Gym: 10-6pm `Senior Walking Hour: 11-12pm Dungeons and Dragons: 6-8pm Recreational Racquetball League: 5-6:30pm Competitive Basketball: 5:30-7:30pm (Middle School) Wednesday: `Senior Walking Hour: 11-12pm Racquetball Challenge Court: 5-8pm Competitive Racquetball league: 5:30-9:30pm Cribbage meetup: 6-8 pm (multi-purpose room) Thursday: `Senior walking hour: 11-12pm 21 Youth Gym: 12-lpm Competitive Basketball: 5:30-7:30pm Friday: Senior Walking hour: 12-lpm Youth Gym: 1-3pm Open Volleyball: 6-8pm Saturday: Park and Bark llam-12pm Open Pickleball: 12-2pm Open Rockwall: 1-3pm Adult Only Rockwall: 3-4pm Skate Night: 6-9pm (every other Saturday) Other events: November 3rd: Puzzle Battle 6pm-8pm November loth: Super Smash Brothers 4pm- 7pm November 1lth: Grateful Skate 5pm-8pm November 17th: Winter Art Night 6pm-8pm November 18th: Turkey Bowl & BBQ 12pm - 2pm Kids Night 5pm-7:30pm November 20th +27th: Sewing Workshop November 25th: Harry Potter Skate 5pm - 9pm Leagues: October 16th—Dec. 1 lth: Rec. Volleyball League, Friday 5:30PM—7:30PM AVTEC Gym October 3rd— Nov. 30th: Basketball League, Tues. & Thurs. 5:30PM—7:30PM AVTEC Gym October 13rd—Dec. 8th: Competitive Racquetball League, Fridays 5PM—8PM AVTEC Gym October 1 Oth—Dec. 12th: Rec. Racquetball League, Tuesday 5PM—8PM AVTEC Gym October 18th—Dec. 13th: Competitive Volleyball League, Wednesday 5:30PM— 9:30PM AVTEC Gym Parks: Working on a map of all Parks, Playgrounds, Trails, Ballfield &Pocket Park areas for the Community and Visitors. Refurbishing park signs and bulletin boards Prepping for Christmas putting up lights and decorating Park areas. Campgrounds: Thanks to the weather holding up Campground work& improvements are still ongoing. Harborside, Alice and Marathon Campground resurfacing project has been started and completed during the week of the 6 — 1 Oth Updating Maps, Campground rules and enhancements to Campspot website for easier consumer usage. Online reservations for the 2024 season will open Jan 2 Parking: Parking revenues for the 2023 season $342,380.39 22 11/13/2023 Public Works Department Doug Schoessler - Director ➢ Public Works Director • US Army Corp of Engineers -Tunnel: - The Corp plans to have the design finalized by the end of October. Doug attended the USACE conference in Denver with their full group. Seismic issues with the outflow structure area are the main determining factor in the design of the tunnel crossing over the roadway. They are still on schedule to have the project bid out by late 2026 with construction of the new tunnel starting in 2027. • Public Works Facility Relocation: -We are working to incorporate changes to accesses on the north side of the new site. With the corner lot on Sea Lion selling, we are seeing some challenges, but we feel they may even improve on the plan we had prior. The design team is close to the 65% drawings and we could have updated information in early November. ➢ Water &Wastewater Department -The water/sewer department is completing the yearly sewer main flushing. Water mains will come after that. -Many local projects are trying to get work done before freeze-up. The locate requests are coming in steadily. -Water systems and alarms are all showing normal and being monitored daily to ensure water quality is above standards. -Monthly testing of water and wastewater systems is being done and submitted to DEC as required by the permits. ➢ City Maintenance Shop -The crew at the shop has changed the summer tires over to winter tires this week. -Most of our winter equipment has been tested or repaired. We still have a few major repairs to finish. -Regular and preventative maintenance work continues and fall cleaning through the facilities outside and in has started. ➢ Streets Department -The Street crew was helping with tires and getting all the winter ready. Page 1 of 2 23 11/13/2023 -Street crews will continue to clear ditches, grade gravel roads, and patch potholes throughout the rain and cooling temperatures. - The efforts and continuing work on the alley ways is helping to smooth the surface and lessen the puddling during rain events. -------------------------------------------------------------------------------------------------------------------- Page 2 of 2 24 k ]' :pt Fire & Building Department Fire Chief Clinton Crites ' _ 2023 TYD Statistical Information: Fire & Life Safety Inspections: 319 with 252 violations noted. We NEED volunteers, if you or Emergency Calls: 418 someone you know is interested in serving your community, please New Building Permits Issued 2023: 52 give us a call at 224-3445 or stop with a total construction valuation of $ $26,362,495 by at one of our trainings on Wednesday evenings at 6:OOpm. • Seward Fire and Police departments participated in Trunk or Treat on 10/28,passed out glow sticks to the Elementary and Middle school students and at the Halloween Carnival on 10/31 • At the Halloween carnival, Seward Fire Volunteers provided food free of charge thanks to our sponsors Safeway, Seward Market Place, and the Seward Volunteer Fire Department • Seward Angel Tree Program is up and running, go to www.sewardrire.com/an_elg tree for more information. We still need the community's support in providing gifts and helping on wrapping day! ❑ Nov. IOth—Online Registration Due ❑ Nov. 15th -Angels distributed out into community ❑ Dec. 15th—Angels & gifts due @ SFD before 5:00 pm ❑ Dec. 16th—Public wrapping party— 12:00 pm @ SFD ❑ Dec. 21st—Gift delivery In and Outside City Limits o ANGELS will be in the following locations: • Wells Fargo ® • Seward Marketplace • Frontier Trading Post j • First National Bank • True Value/Fish House • Safeway • Arctic Chiropractic • Alaska Sea Life Center Gift Shop 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 y• • • 1 or • • • • • 25 FALL FIRE SAFETY TIPS . Clear excess leases Something as simple as a pile of leaves can cause a fire. Clean your gutters an rake or leaf blow your yard. Check your heating system Regularly replace furnace filter and keep the burner areas clean and clear. i Keep your fireplace clear of Debris Have your chimney inspected each year before use to avoid any accidental burnings. Time change means battery change 44 Get in the habit of changing the batteries in your smoke detectors and carbon monoxide detectors every fall and spring when changing the clocks 4* for Daylight Savings Time. Learn the outdoor burning regulations in your area Do not engage in illegal burning of leaves and other outdoor debris. Space Heaters As the weather gets cooler,space heaters come out of their summer hiding places. Remember to leave at least 3 feet of space around your heater. Unplug it when not in use. 4 q W Rye 4•fq -c= y y., 1 ' Trunk or Treat F � < t f t Above: Sgt Messmer, Lt Schaefermeyer, FF/EMT Musick and Building Official Rogers passed out Lanyards and glowsticks at the elementary school Left Lower: Chief Crites & Sgt. Messmer at the middle school Right Lower.- Chief Crites and Chief Nickell at the Carnival i °I t 'err . , l� 27 FF/EMT Woodard manning the food stand and serving up scary good food. FF Recruit Rogers manning the haunted house. _4 w a m . w T r , • PACAB Harbor Harbormaster Norm Regis ➢ The 50-ton and 330-ton Travelift have slowed down for winter storage; the SMIC yard is starting to fill up. ➢ We are continuing to train several new harborworkers on the maintaining and operating the Travelifts and harbor operations. ➢ We are working on the SMIC yard drainage to keep water flowing into the ditches. ➢ We are working on the beach access parking lot located at the South end of SMIC. ➢ Some people like that we are still working with some COVID protocol in mind while continuing to do boat lifts and public contact in the Seward Harbor office. ➢ We will continue the cleanup at the old Raibow dump area, just a few more items to deal with and we can lease the property out again. ➢ The harbor office is closed on Sundays for the fall and winter schedule. ➢ The harbor has hired a new Harborworker II; he has started training on the travelift and harbor operations. ➢ The harbor has hired a new harbor office staff, she has started and is currently being trained. ➢ We are continuing to work with the Director from the Pacific Northwest &Alaska Maritime Administration U.S.DOT on finding a suitable grant for the washdown pad project. ➢ We are waiting on funding for the 5-ton crane on I-Dock, Corp Permit has been approved ➢ We are working with a Kenai Peninsula title company on the land acquisition for the Coast Guard land across the bay. ➢ Updated FRC timeline: • Seward FRC Homeport(FY2019 MASI /$1.OM:Anticipated FY2024 MASI /$42M): Scope: Acquire real property and complete NEPA for future FRC homeport. Status: CEU Juneau obligated funds on 25 Aug 2023 to purchase a 1.5 acre parcel at the Seward Marine Industrial Center(SMIC) for future waterfront improvements. Schedule Mar 2024: RFP package to contracting. Apr 2024: Design/Build solicitation released. Sep 2024: Contract award. Protected Construction Completion Date (CCD):September 2026 Notes: Construction pends funds appropriation which is anticipated in FY2024. 29 Conflucnee Strategics City of Seward State of Alaska Interim Update October 29,2023 Administration Governor's Office: Governor's Press Releases Governor Dunleavy Announces Statutory Proposal to Increase the Railbelt's Energy Security October 26, 2023 (Anchorage,AK) - Today Alaska Governor Mike Dunleavy outlined a proposal to increase energy security for Alaska's Railbelt through increased Cook Inlet gas production. The announcement previews legislation that will be introduced in the upcoming legislative session to increase production of Cook Inlet natural gas resources. The proposal will make investment and development in new production more attractive to businesses and unlock the significant resources still in the Inlet while the Administration continues work on long-term energy security solutions. "It is essential that Alaskans have access to reliable and affordable energy. Railbelt utilities are facing an energy supply gap in the coming years, and Cook Inlet's untapped natural gas reserves can help fill that gap,"said Governor Dunleavy. "If we maintain the status quo, much of thatgas will be left untapped because it doesn't make good business sense for operators.Alaskans should not have to resort to importing LNG when it is available right outside our door." The legislation will propose lowering existing royalty floors and would allow a reduced royalty rate on all new oil and gas reserves being brought online in Cook Inlet for ten P.O. Box 1 10190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 30 Conflucnee Strategics years after their startup. The proposal focuses incentives on production by making it more commercially attractive to companies that can get Cook Inlet natural gas to market. These principles ensure it is fair to Alaskans and the state only takes a reduced royalty on new resource development that delivers energy to Alaskan communities. "There are known gas resources in Cook Inlet that are currently economically challenged. Governor Dunleavy's proposed legislation gives DNR additional tools to incentivize exploration, development, and production to get more natural gas to Alaskans,"said DNR CommissionerJohn Boyle. "Royalty is the main economic lever DNR can adjust in the Cook Inlet Basin to incentivize new activity and increase energy security. Royalty drives economics, and economics drive projects." The fiscal impact through foregone revenue is minimal. Cook Inletgas royalties averaged just3.6% ofstate royalty income from FY13-22. In FY22, that amounted to $45.2 million. Royalties from this existing production will not be reduced by the proposal, and it will only apply to new pools and fields that are brought online and are not currently generating royalties for the State. "Twelve-percent of zero is zero. The state makes no royalty on gas that isn't produced,"said Department of Revenue Commissioner Adam Crum. "Given the looming energy supply gap for Railbelt utilities and the level of production under the current regulatory environment, the Governor's proposal is squarely aligned with the Alaska Constitution's mandate to develop state resources for maximum use consistent with the public interest." The bill will be introduced at the beginning of the next legislative session. Governor Dunleavy urges the legislature to act swiftly. If passed, new drilling and development activities would be incentivized immediately and new production from onshore could be realized shortly thereafter. Offshore developments may take several years to come online with the new terms. With the potential to unlock hundreds of additional billions of cubic feet ofgas, these new supplies alone could meet our Railbelt's annual demand of approximately 70 billion cubic feet for several years. These volumes will supplement the significant volumes of gas that are already under contract for the next decade. The Dunleavy Administration will also be rolling out other energy related initiatives across the state that will lower the cost and increase the stability of energy for Alaskans for both the short term and foryears to come. P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 31 Conflucnee Strategics Governor Dunleavy Mourns Vic Fischer, Last Surviving Delegate to the Alaska Constitutional Convention October 26, 2023 (Anchorage,AK) -Alaska Governor Mike Dunleavy and First Lady Rose Dunleavy send their condolences to the family and loved ones of former legislator Vic Fischer, the last surviving delegate to the Alaska Constitutional Convention. He was 99. Governor Dunleavy has ordered the flags to be flown at half-staff in Fischer's honor from sunrise on November 12 until sunset November 13, 2023. "Fischer's lifelong commitment to public service and his contributions have shaped the Alaska we know today,"said Alaska Governor Mike Dunleavy. Born in Berlin, Germany, Fischer immigrated to the United States and in 1950 settled in Alaska. He played an important role in the adoption ofAlaska's state constitution in 1956, which led to its statehood in 1959. Serving in various state and federal jobs after leaving the Legislature, Fischer won election to the state Senate in 1980. Governor Dunleavy Seeks Applicants for House District 40 Seat Josiah Patkotak's resignation opens legislative seat October 10, 2023 (Anchorage,AK) - Governor Mike Dunleavy is inviting any eligible Alaskan living in House District 40 to apply for the vacant seat. HD-40 covers the farthest north region of the state, stretching from the Kotzebue area north to Wainwright, Utqiagvik, Prudhoe Bay and Kaktovik before ending at the Canadian border.Josiah Patkotak who represented district 40 as an independent, resigned today. He was elected mayor of the North Slope Borough earlier this month. By law' within 30 days, the Governor shall appoint a qualified person to fill a vacancy. Residents of House District 40 have until Tuesday, October 31 to submit an application. To apply visit https:Z/aov.alaska.gov P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 32 Conflucnee Strategics Agencies Announcements- Press Releases/Reports/Public Notices: Alaska Medicaid State Plan -ACIP Recommended Vaccines Aaen cy Action: Amendments to the Medicaid State Plan and the Alternative Benefit Plan Pursuant to 42 CFR§§440.386 and 447.205, notice is hereby given that the Department of Health (the department) intends to seek approval from the Centers for Medicare and Medicaid Services(CMS)for amendments to the Alternative Benefit Plan (ABP) authorized under§1937 of the Social Security Act for individuals 19 to 64 years of age who are eligible pursuant to§1902(a) (10)(A)((i)(VIII) of the Social Security Act- the expansion population - and the Title XIX Medicaid State Plan (the state plan). https:,[/aws.state.ak.uslOnlinePublicNotices-INotices-lView.aspx?id=212931 State of Alaska Online Solicitation REQUEST FOR GRANT PROPOSALS Edward Byrne Memorial Justice Assistance Grant(JAG) Program CFDA 16.738 State of Alaska Online Solicitation REQUEST FOR GRANT PROPOSALS Edward Byrne Memorial Justice Assistance Grant(JAG) Program CFDA 16.738 The Division ofAlaska State Troopers seeks proposals from eligible applicants for the Federal Fiscal Year(FFY)2022 funding under the Justice Assistance Grant(JAG) Program. https:,[/aws.state.ak.uslOnlinePublicNotices-INotices-lView.aspx?id=212948 Proposed Changes to the Regulations of the Alaska Workers'Compensation Appeals Commission NOTICE OF PROPOSED CHANGES TO THE REGULATIONS OF THEALASKA WORKERS' COMPENSATION APPEALS COMMISSION REGARDING APPEALS, PETITIONS FOR REVIEW, AND CERTAIN COMMISSION ORDERS BRIEF DESCRIPTION The Alaska Workers'Compensation Appeals Commission proposes to change regulations regarding appeals, petitions for review, and certain commission orders. The Alaska Workers'Compensation Appeals Commission proposes changes to 8 AAC 57 of the Alaska Administrative Code to clarify appeal and petition for review procedures and allow the clerk to issue certain orders, as follows: https:,4/aws.state.ak.us/OnlinePublicNotices Notices View.aspx?id=212975 P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 33 Conflucnee Strategics Special Public Meeting of the Regulatory Commission of Alaska SPECIAL PUBLIC MEETING AGENDA THE REGULATORY COMMISSION OFALASKA 701 WEST EIGHTH A VENUE, SUITE 300 ANCHORAGE,ALASKA 99501 WEDNESDAY NOVEMBER 1, 2023 9:00 a.m. Public Participation (Limited to 5 minutes per presenter, and Commissioner questions) In the Matter of the Consideration of the Implementation of the Federal Infrastructure Investment and Jobs Act's Demand Response Standard(Espindola) https:,[/aws.state.ak.uslOnlinePublicNotices-INotices-lView.aspx?id=213028 Oil Prices and Production Oil and Gas Prices for 1 012 512 02 3 ($/barrel) ANS West Coast $91.08 $1.65 t West Texas $85.39 $1.65 t Intermediate Brent $90.13 $2.06 t Henry Hub $3.01 $0.04 t mmBTU (BBLs) ANS Production 462,4261012412023 P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 34 Conflucnee Strategics Legislature Majority press releases& announcements: House Majority HOUSE MAJORITY MEMBERS PLEDGE TO FOCUS ON NATURAL GAS DEVELOPMENT IN COOK INLET ANCHORAGE- Current production of natural gas in Cook Inlet is in decline and could lead to a significantgap in LNG delivery for the heavily populated Rail Belt service area ofAlaska in the coming years. Importing LNG to these areas would exponentially increase costs that would be passed on to the consumer. Earlier today Governor Dunleavy announced that he is proposing legislation that would encourage potential contractors to further develop natural gas wells in Cook Inlet. The Alaska House Majority applauds the Governor's recognition and efforts to address this serious issue facing Alaska. Members of the Alaska House Majority have been busy addressing this issue as well as other critical energy concerns as we are committed to finding effective solutions for the benefit of all Alaskans. "As Chair of the House Special Committee on Energy and a member of the Governor's Energy Security Task Force, our primary concern in addressing this pressing issue has been to explore strategies aimed at mitigating the anticipated rise in gas prices within the Cook Inlet, while also striving to secure the lowest possible price per kilowatt for consumers. To prevent the looming energy rate increases, we are diligently scrutinizing all available options and proposing the most effective solutions for both gas and new energy development. In preparation for the upcoming session, I am currently reviewing a series of legislative proposals slated for this session, including two of my own, which have emerged as a response to this challenge. This endeavor has been informed by over 200 hours of meetings this summer with the Energy Security Task Force, and The House Special Committee on Energy has been intensely focused on addressing the challenges of the looming Cook Inletgas storage situation."Stated Representative George Rauscher(R-Sutton). "The looming natural gas shortage in the rail belt is one of the most important issues our state currently faces."Commented Resource Committee Chair, Representative Tom McKay (R-Anchorage). "My office has spent much of the interim focused on potential policy solutions and it is extremely encouraging that the governor's office is similarly concerned. We owe it to Alaskans to find local solutions for jobs and economic stability and look forward to working with the Dunleavy administration on this matter in the House Resources Committee." P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 35 Confluence Strategics Chair of the House Ways and Means Committee Representative Ben Carpenter(R - Nikiski)stated, "I applaud the Governor and his team for addressing Alaska's looming energy crisis with what sounds like a reasonable proposal to incentivize natural gas production in Cook Inlet. If Alaskans are to prevent or lessen the duration of a dramatic increase in our household gas and electric bills in the next 12-24 months, more natural gas must be produced locally. Paying for imported liquid natural gas at a premium is not a reasonable solution when we have abundant reservoirs in our backyard. I look forward to discussing this proposal in the months ahead." We anticipate working with the Governor and all interested parties in securing long-term solutions for providing the energy needs ofAlaskans foryears to come. Major News Articles / Political Items of Interest Fishing Alaska Native leaders call for legal overhaul to protect traditional fish harvests The crash of salmon stocks in Western Alaska's Kuskokwim River has sparked a bitter court fight between the federal and state governments, and now Alaska Native leaders are calling for congressional action to ensure that Indigenous Alaskans have priority for harvests when stocks are scarce. The conflict has gripped this year's Alaska Federation of Natives convention underway this week in Anchorage,where delegates expressed anger over state policies and fears for the future of fish and wildlife upon that they and their ancestors traditionally harvested. https:[/localfirstmediagroup.com/alaska-native-leaders-call-for-legal-overhaul-to-protect- traditional-fish-harvests/ P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 36 Conflucnee Strategics Health Alaska vital statistics show declines in both deaths and births in 2022 Dangers from COVID-19 may be gradually fading in Alaska,with fewer deaths caused by the infectious disease that gripped the world in an historic pandemic, according to data within the state's newly released vital statistics report. https:://www.juneauempire.com/news/alaska-vital-statistics-show-declines-in-both- deaths-and-births-in-2022/ COVID deaths in Alaska down significantly in 2022 but still the 4th leading cause of death COVID-19 deaths in Alaska were down significantly in 2022 compared to the previous year, but the coronavirus was still one of the leading causes of death, the Alaska Department of Health reported this week httl2s://www.adn.com/alaska-news/2023/10/20/covid-deaths-in-alaska-down- significantly-in-2022-but-still-the-4th-leading-cause-of-death/ Alaska's pharmacist shortage has meant reduced hours and long waits for prescriptions Alaskans hoping to pick up prescriptions are facing temporary closures amid persistent staffing challenges at some pharmacies around the state, part of a longstanding pharmacist shortage in Alaska and nationwide. https:llwww.adn.com/alaska-news/2023/10/25/alaskas-pharmacist-shortage-has- meant-reduced-hours-and-long-waits-for-prescriptions-due-to-staffing-issues/ Alaska Facts and Figures 2022 Drug Overdose Mortality Update (September 2023) Background Drug poisonings(overdoses) are a significant contributor to mortality in Alaska and represent an ongoing public health concern. This report is designed to provide an update on the current state ofAlaska drug overdose mortality through 2022. https:,[/health.alaska.aov-1d ph-lVitalStats-IDocumentslPDFs-lDruaOverdoseMortalitvUpdate 2022.12d Education State rolls out playbook to help Alaska schools hire and keep teachers P.O. Box 1 10190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 37 Confluence Strategics The Alaska Department of Education and Early Development has developed an online tool to help schools, districts, communities and elected officials address the state's high rate of teacher turnover. It released the Teacher Recruitment and Retention Playbook in September. https:://www.ktoo.org/2023/10/09/state-rolls-out-playbook-to-help-alaska-schools-hire- and-keep-teachers/ Alaska school sports association bars transgender girls from girls' sports teams The board governing high school sports in Alaska adopted a rule Monday that bans transgender girls from competing on girls' teams. The Alaska School Activities Association board of directors voted in a 5-3 split to adopt the new rule, implementing a regulation adopted in August by the governor-appointed state board of education. httl2s://www.adn.com/sports/high-school-sports/2023/10/09/alaska-school-sports- association-bars-transgender-girls-from-girls-sports-teams/ Law passes Congress unwinding funding penalties for schools that have archery and shooting sports More than a million students in 49 states will be able to participate in school archery programs using... Oil& Gas OPINION: Stars are aligned to make a major push for Alaska LNG By Dan Sullivan There is no doubt that our state and nation are facing many challenges. Inflation is eating into paychecks. The wide-open southern border is fueling thousands of fentanyl overdoses. The cost of energy is skyrocketing. At every turn, it seems that the Biden administration is determined to shut down our state. httl2s://www.adn.com/opinions/2023/10/08/opinion-stars-are-aligned-to-make-a-major- push-for-alaska-ingl Sullivan says 'stars are aligned' for gas pipeline,then asks for another state subsidy In 2001,John Snow,the chairman of CSX predicted that the time had come for North Slope natural gas to be shipped off the North Slope and exported. "The stars are aligned." Snow announced at a Commonwealth North breakfast attended by about 100 people, including former Govs. Walter J. Hickel and Bill Sheffield. "People in the state need to get together and make it happen," Snow said. https:[/www.dermotcole.com/rel2ortingfromalaska/2023/10/8lo4fyt6kvsrmbogju3gc�et hwifmbin P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 38 Conflucnee Strategics Draft report of Dunleavy energy task force champions bullet line, as expected The latest draft report from the Dunleavy energy task force makes a stronger pitch for subsidizing our old friend—the gas pipeline—and injects the phrase "regret cost" into the debate about importing LNG to Alaska. Here is the Oct. 20 draft report, which is 12 pages longer than the Oct. 3 edition. https:://www.dermotcole.com/reportingfromalaska/2023/10/23/dunleavy-energy-task- force-morphs-into-bullet-line-task-force Business/Economy State job satisfaction study shows homes are fun to design, not build Drywall and ceiling tile inspectors in Alaska make more than $31 an hour,but are nearly as unhappy with their jobs as fast food cooks making half as much. Meanwhile, architects seem to be quite a bit happier with their jobs than anyone else. https:I Jwww.juneauempire.com/news/state-job-satisfaction-study-shows-homes-are-fun- to-design-not-build/ Alaska labor shortages expected to continue as Boomers age out of workforce Finding workers in Alaska these days is tough. That's because there are roughly two jobs open for everyone looking for work. This is 180-degrees from the historic job market in the early 2000s, where there were just over two job-seekers for every available job. https:[/www.ktoo.orgZ2023/10/201aaska-labor-shortages-expected-to-continue-as- boomers-age-out-of-workforce/ The Great Hiring Challenge: States Where Employers Are Struggling The Most The Accommodation and Food Services industry is experiencing the highest quit rate since July 2021, above 4.9 percent for most of the year. Retaiol workers are quitting almost as frequently, with resignation rates hovering around 2.6 percent in September 2023. The American labor market has experienced a rollercoaster over the past decade. At the pandemic's peak, millions lost their jobs, and the unemployment rate soared. But many businesses now grapple with a worker shortage, causing service delays and disruptions in various industries. P.O. Box 110190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 39 Conflucnee Strategics State Budget/Programs Alaska Delegation welcomes $206 million DOE grant strengthening Alaska's electrical grid resilience U.S. Senators Lisa Murkowski and Dan Sullivan (both R-Alaska), and Representative Mary Sattler Peltola (D-Alaska), Wednesday welcomed a $206.5 million grant awarded to the Alaska Energy Authority (AEA) to build a High Voltage Direct Current (HVDC) submarine cable between the Kenai Peninsula and Anchorage that will add redundancy to the Alaska Railbelt electrical grid system in the event of disruptive events. https:,[/localfirstmediagroup.com/alaska-delegation-welcomes-206-million-doe-grant- strengthening-alaskas-electrical-grid-resilience/ Permanent Fund wants path to $100 billion: trustees may call for taking higher risks for higher returns The Alaska Permanent Fund Corporation trustees elan to meet Oct. 30 to decide on a future strategy to accelerate the process of turning the $75 billion fund into a $100 billion fund. Just about every step the six trustees are talking about, however, should not be taken without support from the Legislature and a great deal more public involvement. Read More Latest Alaska crime report shows a 67% increase in murders and a slight overall decrease in crime The murder rate in Alaska increased dramatically, though there was a slight overall decrease in crime statewide in 2022, according to an Alaska Department of Public Safety report released Monday. httl2s://www.juneaueml2ire.com/news/latest-alaska-crime-report-shows-a-67-increase- in-murders-and-a-slight-overall-decrease-in-crime/ Alaska governor's staff deleted state agency's analysis of teacher pay The article would have been on cover of Alaska Economic Trends for October. OPINION: Governor's office censorship of labor data is troubling Alaska Economic Trends, a magazine our research and analysis team at the Alaska Department of Labor and Workforce Development publishes, was unusually thin this month because the governor's office pulled an article we'd written on teachers right before publication. httl2s://www.adn.com/opinions/2023/10/25/opinion-governors-office-censorship-of- lab or-data-is-troubling/ P.O. Box 1 10190,Anchorage,AK 99511 423 Seward Street,Juneau,AK 99801 40 Conflucnee Strategics Politics/Police North Slope Borough election result leaves empty seat in Alaska Legislature Independent Alaska House member Josiah Patkotak was sworn in as mayor of the North Slope Borough on Tuesday, creating a vacancy in the Legislature that will be filled by Gov. Mike Dunleavy next month. https:://www.adn.com/Volitics/alaska-legislature/2023/10/10/gov-dunleavy-to-fill- va can cy-in-alaska-legislature-next-month/ Alaska Congresswoman Peltola back in D.C. following husband's death Alaska's sole representative in the U.S. House, Mary Peltola, is back in Washington, D.C., after a break to mourn the death of her husband. Eugene "Buzzy" Peltola Jr. died in a plane crash in Western Alaska in mid-September. Congresswoman Peltola returned to a U.S. House trying to elect a new Speaker, and as she cast her vote Tuesday, members on both sides of the aisle rose to give her a standing ovation. httl2s:llalaskal2ublic.orgZ20231101171alaska-congresswoman-l2eltola-back-in-d-c- following-husb ands-death/ OPINION: Begich can reinstate common-sense conservative leadership for Alaska By Randy Ruedrich, Mike Chenault and Cynthia Henry After losing our state's U.S. House seat for the first time in 50 years,Alaskans now have an opportunity to unite behind a common-sense conservative leader who will stand above party politics to do what is right for all Alaskans. httl2s://www.adn.com/opinions/2023/10/22/opinion-begich-can-reinstate-common- sense-conservative-leadership-for-alaska/ OPINION: Avoiding the Jenga effect as Alaska navigates toward sustainable energy By James Kaufman As we navigate Alaska's path to a more sustainable energy future, I'm reminded of the delicate balance required in the game of Jenga. Much like a precarious Jenga tower,Alaska's energy landscape calls for careful planning to ensure both progress and stability in our quest for a cleaner, more diversified and sustainable energy future. httl2s://www.adn.com/opinions/2023/10/25/opinion-avoiding-the-jenga-effect-as- alaska-navigates-toward-sustainable-energy/ OPINION: Medicaid cuts threaten the broader economy By Donna Mears As government pandemic programs wind down, tens of thousands of Alaskans have lost Medicaid health insurance as the Alaska Department of Health has struggled to adjust to new federal program requirements. Losing medical coverage can have devastating P.O. Box 110190,Anchoragc,AK 99511 423 Seward Street,Juneau,AK 99801 41 Confluence Strategies consequences for an individual,but these disenrollments also hurt the broader Alaskan economy. httl2s://www.adn.com/opinions/2023/10/25/opinion-medicaid-cuts-threaten-the- broader-economy/ Special Interest Seward shutters city jail due to lack of staff The Seward Community Jail is currently closed due to a lack of staff to operate the facility. The facility had been used as a temporary detention facility and was built to hold up to 14 people. But City Manager Kat Sorensen says Seward struggled to fill key correctional positions and could not remain open. https://www.alaskasnewssource.com/2023/10/l2/seward-shutters-cityiail-due-lack- staff Ahead of convention,Alaska Federation of Natives proposes Congress move to permanently protect rural priority for subsistence fishing As the Alaska's largest gathering of Indigenous people gets underway in Anchorage later this week, the Alaska Federation of Natives is proposing that Congress update a key protection for rural subsistence fishing that faces a legal challenge from the state of Alaska. https://www.adn.com,/12olitics/2023/10/16/ahead-of-convention-alaska-federation-of- natives-12roposes-congress-move-to-12ermanently-12rotect-rural-12riority-for-subsistence- fishin Vic Fischer,last surviving Alaska Constitutional Convention delegate, dies at 99 Vic Fischer, a father of Alaska statehood who as a child escaped both Adolf Hitler and Joseph Stalin, died Sunday evening. He was 99. Fischer died at his home in Anchorage after a long period of declining health. Although he was able to enjoy a recent performance of the musical "Hamilton," he had been in hospice care for some months. In the last two weeks, his condition dramatically worsened. He received visits from many friends and family members before his death. httl2s://www.adn.com,/politics/2023/10/22/vic-fischer-last-surviving-alaska- constitutional-convention-delegate-dies-at-9U P.O. Box 110190,Anchoragc,AK 99511 423 Seward Street,Juneau,AK 99801 42 Clerk Report By Jodi Kurtz Obihiro 551" Sister City Delegation Visit A group of citizens and city representatives spent October 261"through November 2"d in Obihiro Japan. When arrived we were welcomed by the Obihiro city staff and our host families. We attended many different activities and events while we were there that included, Manabe Gardens, Public Library, Art Museum, Centennial Museum, City Hall,Tokachi International Relations Center,Tokachi Farms and Observatory, Beet Museum,Tokachigawa Spa Springs (Foot bath & Bakery), Obihiro Station, Obihiro Racetrack and many more places. We had many different tastes of Japanese foods. We also attended the Welcome Party where we shared our gift by Jay Leslie with the Major of Obihiro. The Obihiro Students (Yukino, Hanae, Shiyuki, Ran)that traveled here this summer just happened to be at most of the places we attended.They rode their bikes and met up with us and beat us sometimes to the next location. It was fun to hang out with the girls again, I think they really enjoyed their trip here. We will have more to share at the next council meeting when we have our presentation with the citizens on our trip to Obihiro. . — HA 0 E 77 R n , ..,"„ `. P .A 4 -� 1 43 CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP ATTORNEYS AT LAW SUITE 302 911 WEST EIGHTH AVENUE ANCHORAGE, ALA SKA 99501 TELEPHONE:(907)272-8401 FACSIMILE:(907) 274-3698 bcf@bcfaklaw.com November 7, 2023 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: October Status Report Dear City Council: This is our status report covering activity on legal matters worked on during September 2023. General Matters: We continued to advise on the recent referendum petitions. We advised on two separate issues related to resolution of disputes over damages to police vehicles and were able to successfully resolve one of them. We continue to review potential amendments to Title 14. Electric Utility: We monitored the ongoing status of the CEA rate case and continued to advise on counsel options moving forward. We also advised on questions related to the wholesale power contract. Personnel: We advised on termination of a probationary employee. We advised regarding a non- disparagement clause in a separation agreement with a former employee. We advised on a matter relating to an employee posting distasteful personal remarks on social media. Planning: We have two ongoing matters in court relating to code compliance and are attempting to finalize both. We advised on enforcement and permitting matters relating to short-term rentals. Port and Harbor 44 Status Report to Seward City Council November 7, 2023 Page 2 of 2 We continued negotiations with the owner of an abandoned vessel to have it removed from city property as well as continued the lawsuit against the owner to seek a judgment giving the City authority to do so. You can expect to receive our next status report by December 5. Very truly yours, CHANDL7Severin SON & CACCIOL Sa 45 City of Seward,Alaska City Council Meeting Minutes October 23, 2023 Volume 42, Page CALL TO ORDER The October 23, 2023 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Police Chief Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure,presiding, and John Osenga Randy Wells Mike Calhoon Robert Barnwell Kevin Finch Julie Crites comprising a quorum of the Council; and Kat Sorensen, City Manager Jason Bickling, Assistant City Manager Kris Peck, City Clerk Sam Severin, City Attorney (telephonically) Excused—Wells Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Bob Linville, inside city limits, provided an update on the PACAB heat loop committee and their upcoming meeting schedule. The general goal was to heat city buildings with heat generated from the ocean. Tim McDonald, inside city limits, spoke to the importance of quality of life for all Seward residents and the surrounding area. He wanted Seward to take advantage of alternative energy opportunities. McDonald was concerned the Lowell Point Sewage Lagoon had a negative impact on the fish in Resurrection Bay. Bruce Jaffa, outside city limits, spoke in support of Resolution 2023-116 regarding the grant for the heat pump project. He also spoke to the poor organization of the Seward Highway construction projects this summer. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Calhoon/Osenga) Approval of Agenda and Consent Agenda 46 City of Seward,Alaska City Council Meeting Minutes October 23, 2023 Volume 42, Page Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the October 9, 2023 City Council Regular Meeting Minutes Resolution 2023-116: Authorizing the City Manager to accept the Seward Geothermal Heat Pump Project Grant #DE-EE0010668 in the amount of $192,150.00 from the Office of Energy and Efficiency & Renewable Energy of the U.S. Department of Energy (DOE)for Federal Renewable Energy Research & Development and Authorizing a City In-Kind and Cost Share of$20,760.00 for a Total Project Cost of$212,910.00 and Appropriating Funds Resolution 2023-117: Adopting Personnel Policy 92023-07: City Drug And Alcohol Policy Resolution 2023-118: Authorizing the City Manager to Enter Into An Agreement With Premier Construction, LLC to Resurface Alice, Marathon, and Harborside Campgrounds in the Amount Of$44,340.13 SPECIAL ORDERS,PRESENTATION,AND REPORTS Proclamations and Awards Proclamation for Seward Seahawks Football Team was read by Mayor McClure and accepted by Coach Tyler Mallory. City Manager Report City Manager Kat Sorensen said she had been on some interesting facility tours over the past two weeks. Last week Sorensen met with other Alaskan city managers and discussed a variety of issues in an informal,yet informative way. Sorensen confirmed that Saturday, January 6, 2024 would be the date for the city council retreat. Sorensen noted she would be flying out to Obihiro, Japan tomorrow night as part of the Seward delegation. Police Chief Alan Nickell said a veterinarian from Anchor Point would be at the Seward Animal Shelter next Saturday to provide immunization and wellness checks. Nickell wanted a sign at the shelter to honor Alice Pickett in the same format as the historic walking tour signs. Nickell spoke to the staff shortage at the community jail. Nickell said they had received one applicant,but two were needed in order to re-open the jail. Presentations—None PUBLIC HEARINGS Resolutions Requiring Public Hearing 47 City of Seward,Alaska City Council Meeting Minutes October 23, 2023 Volume 42, Page Resolution 2023-115: Determining it is in the Public's Interest, and Necessary, to Proceed with the Formation of an Assessment District for Lots 15-18, Block 8 of the Gateway Subdivision 2022 Lindquist Addition Motion (Osenga/Calhoon) Approve Resolution 2023-115 Assistant City Manager Jason Bickling said the agreement needed to be set up so potential buyers would know the approximate amount of money required for improvements. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Calhoon noted this would have been a good idea for the Afognak neighborhood that was the recent subject of an improvement district petition. Motion Passed Unanimous NEW BUSINESS Other New Business Discuss Heat Loop Ad-Hoc Committee with update from Bruce Jaffa and Mary Tougas PACAB Heat Loop Ad Hoc Committee Chair Bruce Jaffa provided an update on the heat loop project. He noted the Seward community had one of the strongest advocacy groups for heat loop technology. Jaffa advocated for the continuation of the heat loop committee beyond 2023. Motion (McClure/Osenga) Extend Heat Loop Ad Hoc Committee thru February 2025 Barnwell supported the heat loop committee. Motion Passed Unanimous Organization of City Council: Nominate,elect,and swear in a council member as Vice Mayor with a term to expire October 2024 Motion (Calhoon/Barnwell) Nominate John Osenga as Vice Mayor with a term to expire October 2024 Motion Passed Non-Objection from Council 48 City of Seward,Alaska City Council Meeting Minutes October 23, 2023 Volume 42, Page Appoint a liaison to the Seward Community Health Center with a term to expire October 2024 No appointment was made for liaison to the Seward Community Health Center. Appoint a liaison to the Planning &Zoning Commission with a term to expire October 2024 No appointment was made for liaison to the Planning& Zoning Commission. CITIZEN COMMENTS Bruce Jaffa, outside city limits,was grateful that was Seward was such a nice community. As the current chair of PACAB,Jaffa noted the their agenda packets used to be much larger in size with heavier topics. He hoped to re-energize PACAB work sessions and topics and encouraged city council to direct PACAB to delve into topics. Kari Boulden, outside city limits, noted the board and commission attendance tracking sheets included in the city manager report. She hoped a similar tracking sheet could be included for city council member attendance. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Sorensen thanked the heat loop committee for their hard work. She clarified some details on the drug and alcohol policy that was passed tonight. Sorensen said the Seward Highway construction would be wrapping up next week. Bickling thanked the heat loop ad hoc committee for their efforts. The Department of Energy was very interested in the heat loop project. Bickling said there would be very little cash contribution at the end due to in-kind donations. Barnwell was excited about the heat loop committee's progress. He thanked Tyler Mallory for his work on parking enforcement. Barnwell was grateful to have been selected for the Obihiro trip and was excited to fly to Japan tomorrow. Crites was very proud of Tyler Mallory for his coaching of the Seahawks football team. She thanked the police chief for recruiting a veterinarian for the animal shelter. Finch gave a shout out to the Seahawks football team for their winning season. He thanked the police chief for bringing in a veterinarian to the animal shelter. Finch thought the heat loop project was interesting. Calhoon congratulated the Seahawks Football team and thanked the heat loop committee. Calhoon noted that large sections of land across the bay were potentially open for development. He wondered if Nash Road could be upgraded to accommodate future development. Lastly, he noted an upcoming Veterans Program at the Elementary School. 49 City of Seward,Alaska City Council Meeting Minutes October 23, 2023 Volume 42, Page Osenga congratulated the Seahawk football team on their season. Osenga congratulated Crites and Barnwell on their election to council. He said it was truly an honor to be vice-mayor of city council. McClure congratulated the Seahawk football team. Last Thursday, Resurrection Bay Historical Society (RBHS) had an exciting time opening a time capsule. RBHS was currently accepting new items for the next time capsule. McClure noted Vic Fischer had passed away at 99 years old and he was the last surviving signer of Alaska's constitution. Lastly, McClure was looking forward to the Christmas lights to brighten up the winter darkness. Calhoon wished everyone a safe Halloween on Tuesday. Council recessed the meeting at 8:05 p.m. Council resumed the meeting at 8:11 p.m. EXECUTIVE SESSION A. Per Seward City Code 2.10.033E(1): Matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity; (3): Matters which by law, municipal Charter, or ordinances are required to be confidential- Provide direction to City Attorney on handling of Case No. 3SW-23-00046CI Motion (Osenga/Calhoon) Go Into Executive Session To Provide Direction To City Attorney On Handling Of Case No. 3SW-23-00046CI Motion Passed Unanimous City Attorney Sam Severin was invited to join telephonically. The City Manager and Assistant City Manager were invited to stay. Council went into executive session at 8:14 p.m. Council came out of executive session at 8:32 p.m. ADJOURNMENT The meeting was adjourned at 8:32 p.m. Kris Peck Sue McClure City Clerk Mayor (City Seal) 50 • AMP Resolution 2023-121 A RESOLUTION OF THE CITY COUNCIL OF SEWARD, ALASKA AUTHORIZING THE CITY MANAGER TO PURCHASE A REPLACEMENT VEHICLE IN THE FORM OF A CHEVROLET SILVERADO CREW CAB 4X4 CHASSIS WITH A FLATBED AND CRANE TO REPLACE A 2015 FORD F350 4X4 TRUCK WITH CRANE FOR THE HARBOR DEPARTMENT AND APPROPRIATING FUNDS IN AN AMOUNT NOT TO EXCEED $83,186.31 Documents: • Agenda Statement • Resolution 2023-121 • Attachments: o Quote from Kenda Ford and Bob's Services o Quote from Swickard Auto Group and Bob's Services o Quote from Quality Equipment 51 City Council Agenda Statement Meeting Date: November 13, 2023 To: City Council Through: Kat Sorenson, City Manager From: Norm Regis, Harbormaster Subject: Resolution 2023-121: Authorizing The City Manager To Purchase A Replacement Vehicle In The Form Of A Chevrolet Silverado Crew Cab 4X4 Chassis With A Flatbed And Crane To Replace A 2015 Ford F350 4X4 Truck With Crane For The Harbor Department And Appropriating Funds In An Amount Not To Exceed $83,186.31 Background and justification: The Harbor Department needs to replace vehicle 468 and has obtained City Council approval in the 2024 Harbor budget through Resolution 2022-117. The Harbor has a five-vehicle fleet, and the Crane Truck plays an important role in hauling the City's 1000-gallon oil tank. The flatbed and crane coupled with the tank are used to pump out used oil at our six (6) designated used oil sites. The used oil is then transported to SMIC and stored for use in 4 City buildings for heat. Saving the City money on heating fuel. The Crane Truck is also used in loading and unloading containment booms and picking up drums of oil from vessels in the Harbor. Currently, the "Crane Truck" has 88,011. miles. The Harbor recommends the purchase of a 2024 Chevrolet Silverado CC31043 Crew Cab C 4x4 Chassis using the State Procurement Contract. According to SCC 6.10.120.13 "The City may utilize competitive bids obtained by other governmental units. The listed price through Swickard Auto Group for a plain chassis crew cab truck is $47,876.00. In Addition, the harbor obtained separate and competitive quotes for the Flatbed ($9,070.31) and Crane ($2,6040.00) for a total cost of $83,186.31. The Harbor has completed this process and by doing so has saved the city money. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.5.1.1 Encourage the growth and development of an efficient, functional boat harbor that meets Seward's commercial and recreational needs. Strategic Plan: Page 10—Reduce utility cost Other: 52 Certification of Funds Total amount of funds listed in this $ $83,186.31 legislation: This legislation (✓): Creates revenue in the amount of: $ ✓ Creates expenditure in amount of: $ 83,186.31 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): ✓ Budgeted Line item(s): Not budgeted Not applicable Fund Balance Information Affected Fund (✓):03000-2000-8103 General SMIC Electric Wastewater Boat Harbor Parking F1 Water F1 Healthcare ✓ Motor Pool Other Note: amounts are unaudited Available Fund Balance $ 1,981,137 Finance Director Signature: Attorney Review Yes Attorney Signature: ✓ Not Comments: applicable Administration Recommendation ✓ Adopt Resolution Other: 53 Sponsored by: Sorensen CITY OF SEWARD,ALASKA RESOLUTION 2023-121 A RESOLUTION OF THE CITY COUNCIL OF SEWARD, ALASKA AUTHORIZING THE CITY MANAGER TO PURCHASE A REPLACEMENT VEHICLE IN THE FORM OF A CHEVEROLET SILVERADO CREW CAB 4X4 CHASSIS WITH A FLATBED AND CRANE TO REPLACE A 2015 FORD F350 4X4 TRUCK WITH CRANE FOR THE HARBOR DEPARTMENT AND APPROPRIATING FUNDS IN AN AMOUNT NOT TO EXCEED $83,186.31 WHEREAS,the Harbor Departments flatbed with crane is vehicle 468 and is over 8 years old, with more than 88,000 miles; and WHEREAS, the motor pool fund includes monies for the Harbor Department to replace this vehicle,which was approved by Council in the 2024 Harbor budget Resolution 2022-117; and WHEREAS,this vehicle with crane is needed for the Seward Harbor's used oil program; and WHEREAS, the vehicle is used to tow a 1000-gallon oil tank which is needed for collecting,processing, and delivering about 25,000 gallons of used oil annually. WHEREAS,unit 468 will be placed in the next surplus sale; and WHEREAS, in accordance with City Code 6.10.120.B, the Harbor Department wants to make the purchase by using the State of Alaska's purchasing contract; and WHEREAS, Swickard Auto Group had the lowest price for a vehicle in the amount of $47,876.00. WHEREAS, the harbor did additional leg work to find the best price for the flatbed and crane package with the lowest price coming from Quality Equipment Sales in the amount of $35,310.31. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is authorized to purchase a Chevy Silverado Crew Cab Chassis 4X4 using the state purchasing contract from Swickard Auto Group in the amount not to exceed $47,876.00. 54 CITY OF SEWARD, ALASKA RESOLUTION 2023-121 Section 2. The City Manager is authorized to purchase a flatbed and crane package from Quality Equipment Sales in an amount not to exceed $35,310.31. Section 3. The total amount of$83,186.31 will be appropriated from the Motor Pool Fund account number 03000-2000-8103 on the FY24 budget. Section 4. The unit 468 is declared surplus to the City's needs, and it can be sold to the public. Section 5. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of November 2023. THE CITY OF SEWARD,ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 55 �e_09 A L- j� Prepared for: Tony Sieminski, City Of Seward I Mobile: 907-224-4357 Email: Tsieminski@cityofseward.net Other Options Price: $57,225 .Tfzt,ge- Price: $8,600 Flatbed: 9' x 96" Cadet steel Metro Flatbed with, SPECIAL ORDER class 5 trailer hitch and wiring Price:$26,940 Tiger Crane(description in email attachment) TC�-p L )' 2024 F-350 Chassis 4x4 SD Super Cab 168" WB DRW XL (X3H) Price Level: 420 Client Proposal Prepared by: brandon penrod Office: 907-793-8233 Date: 10/05/2023 f Kendall Ford Fleet 1431 Unga Street, Anchorage, Alaska, 99501 Office: 907-793-8233 56 1 Page: 1 Proposal Order Number: 0096573 Order Date: 10/12/2023 BOB'S SERVICES, LLC 2009 SPAR AVENUE Salesperson: 1900 Customer Number. 00-CSH ANCHORAGE, AL.ASKA 99501 SHOP (907) 276-3221 - PAX (907) 276-1972 Sold To: Ship To: 9 PVMX TEMPLATE 9'PVMXTEMPLATE 2009 SPAR AVE 2009 SPAR AVE Anchorage,AK 99501 Anchorage,AK 99501 Confirm To:Cash Sale Customer P.O. Ship VIA Comment VIN 91PVMX STOCK# Item Number Description Description Price Amount KNPVMX-95 1.00 VALUE MASTER PLATFORM 4,480.00 4,480.00 KNBHG4094C 1.00 STEEL BULKHEAD 742,00 742.00 BSIFBMTGKIT 1.00 FLATBED MOUNTING KIT COMPONENT 430.00 430.00 BPTR6211518 12.00 DBL END THIRD STUDS 518"-11 18" COMPONENT 0.00 BPB2162FF 12.00 TIE BAR,FORGED 4.25iN C-C COMPONENT 0.00 BSIFBINSTALL 1.00 FLATBED INSTALL 3,200.00 3,200.00 r3SIMFINSTALL 1.00 MUD FLAP INSTALL 247.12 247.12 BPMFBH2375F 1.00 MUD FLAP WELD ON MNT PLATE 24" COMPONENT 0.00 BPMFW2375 1.00 MUDFLAP WASHER 8RKT BLK 24" COMPONENT 0.00 BPB36PCB 1.00 MUDFLAPS,24X36,BSI,BLACK COMPONENT 0.00 BSIALARM 1.00 BACKUP ALARM AND INSTALLATION 165.00 165.00 BPBA0972 1.00 BACK-UP ALARM,97 DS COMPONENT 0.00 BP5626738 2.00 OEM BOX STYLE STT LED 52.50 105.00 BSICLASS IV 1.00 CLASS IV HITCH INSTALLED 635.00 635.00 BPTC1007P 1.00 7 PIN TRUCK END TRAILER CONN 9,50 9.50 BSIWIRE 1.00 WIRE TRAILER PLUG 160.00 160.00 *STEEL OVERLAY 1.00 1,600.00 1,600.00 LABOR AND MATERIAL TO DO A STEEL OVERLAY ST90395S 1.00 EC3200ALUM TELSCOP CRANE 11,5 18,940.50 18,940.50 /LABOR 40.00 Shop Labor 180.00 7,200.00 LABOR TO FAB CRANE MOUNT AND INSTALL CRANE Net Order: 37,914.12 Less Discount: 0.00 Freight: 0.00 Quotes are good for 30 days Safes Tax: 0.00 Order Total: 37,914.12 57 SPECIFICATION NO:148 VEHICLE TYPE:CREW CAB CHASSIS 4X2 DRW 12,500 GVWR VENDOR: Swickard Auto Group Make: Chevrolet Model Year: 2024 Model: Silverado CC31043 Trim Level: WT Bid Price Gas Engine 1$45,351.00 MINIMUM REQUIRED EQUIPMENT Seating for five(5),including driver. Exterior Color:OEM White Medium to Dark Grey Interior GVVVR: 12,500 Pounds Engine: Gas,Minimum 6.7 Liter Transmission-Automatic Minimum 5 Speed with PTO Provision PTO Available with Diesei Only 2WD(4x2) Dual Rear Wheels CA(Cab to Axle Dimension): 60 Inches Steering:Full Hydraulic Power or Power Assist Type Shock Absorbers,HD,front and rear Tires&Wheels:Rated for Axles,Steel Belted Radials(tubeless)to include full size mounted spare shipped loose with unit. Fuel tank size,40 gallons 40/20/40 Split Bench Cloth Seats Air Conditioning Cruise ControlfTilt Steering Power Windows[Power Locks Keyless Remote Entry Trailer Tow Power Mirrors AM/FM with CD Rubberized Vinyl Flooring JOEM Up-fitter Switches to include all components aConnectors and terminals necessary!or nook up?Amendment' Tow Hooks,2 each,front,bolted to frame. Ar S s OPTIONAL EQUIPMENT " ax4 7011d0'10d1C1_ ';Turbo Diesel Engine w/PTO Cloth Bucket Seats with Center ConsolePlow Prep Package OEM Trailer Brake Controller 84"CA Not Available Hands Free Communication System OEM Standard OEM Auto Start Shipping to Fairbanks Shipping to Juneau No Char eSOA 300 other ov't urchase VENDOR NOTES OR CLARIFICATIONS die 58 �f Page: 1 Proposal L33:S Xorder Number: 0096701 arder Date: 10118/2023 BOB'S SERVICES, LLC 2009 SPAR AVENUE Salesperson: 1900 Customer Number: 00-SCB ANCHORAGE, ALASKA 99501 SHOP (907) 276-3221 - FAX (907) 276-1972 Sold To: Ship To: Swickard of Anchorage Swickard of Anchorage 1300 E.5th Ave. 1300 E.5th Ave. Anchorage,AK 99501 Anchorage,AK 99501 (907)279-9641 Confirm To: Customer P.O. Ship VIA Comment VIN 91PVMX STOCK# Item Number Description Description Price Amount KNPVMX-95 1.00 VALUE MASTER PLATFORM 4,480.00 4,480.00 KNBHG4094C 1.00 STEEL BULKHEAD 742.00 742.00 BSIFBMTGKIT 1.00 FLATBED MOUNTING KIT COMPONENT 430.00 430.00 BPTR6211518 12.00 DBL END THRD STUDS 5/8"-11 18" COMPONENT 0.00 BPB2162FF 12.00 TIE BAR,FORGED 4251N C-C COMPONENT 0.00 BSIFBINSTALL 1.00 FLATBED INSTALL 3,200.00 3,200.00 BSIMFINSTALL 1.00 MUD FLAP INSTALL 247.12 247.12 BPMFBH2375F 1.00 MUD FLAP WELD ON MNT PLATE 24" COMPONENT 0.00 BPMFW2375 1.00 MUDFLAP WASHER BRKT BLK 24" COMPONENT 0.00 BPB36PCB 1.00 MUDFLAPS,24X36,BSI,BLACK COMPONENT 0.00 RSIALARM 1.00 BACKUP ALARM AND INSTALLATION 165.00 165.00 BPBAD972 1,00 BACK-UP ALARM,97 DB COMPONENT 0.00 BP5626738 2.00 OEM BOX STYLE STT LED 52.50 105.00 BSICLASS IV 1.00 CLASS IV HITCH INSTALLED 635.00 635.00 BPTC1007P 1,00 7 PIN TRUCK END TRAILER CONN 9.50 9.50 BSiWIRE 1.00 WIRE TRAILER PLUG 160.00 160,00 Net Order: 10,173.62 Less Discount: 0.00 Freight: 0,00 Quotes are good for 30 days Sales Tax, 0.00 Order Total: 10,173.62 59 Page: 1 Proposal 9iiix Order Number: 0096777 Order Date: 10/18/2023 BOWS SERVICES, LLC 2009 SPAR AVENUE Salesperson: 1900 Customer Number: 00-SCB ANCHORAGE, ALASKA 99501 SHOP (907) 276-3221 - FAX (907) 276-1972 Sold To: Ship To: 5wickard of Anchorage Swickard of Anchorage 1300 E.5th Ave. 1300 E.5th Ave. Anchorage,AK 99501 Anchorage,AK 99501 (907)279-9641 Confirm To: Customer P.O. Ship VIA Comment VIN crane STOCK# Item Number Description Description Price Amount ST90395S 1.00 EC3200 ALUM TFLSCOP CRANE 11,5 18,940.50 18,940.50 /LABOR 40.00 Shop Labor 180.00 7,200.00 IFRT IN 0.00 FREIGHT 1N 2,500.00 Net Order 28.640.50 Less Discount: 0-00 Freight: 0.00 Quotes are good for 30 days Sales Tax: 0.00 Order Total: 28,640.50 60 Quality Equipment Safes &Service Estimate for RO #38681 11 801 South Gambell Street Service Advisor:Russell McKenzie U A L I TY Anchorage,AK 9 9 515 ®EQuiPMENI " (907)349-6215 Date Created:10/24/23 at 08:25 AM AKDT crystal@qualityak.com Client:City of Seward Vehicle:2024 Ford F-350 City of Seward ( 2024 Ford F-350 RO 438681 PO Box 7 67/434 6TH AVE (f VIN:N/A l Save Parts:No Seward,AK 99664 License:N/A ? I Phone:(907)224 3138 Color:N/A Email:jsheehan@cityofseward.net Odometer In:N/A/Out:N/A i Client concerns: • Truckto be 2024 Ford Super Dirty 60"CA DRW Chassis -Install Cadet Metro 9'x96"steel flatbed with headboard,fuel fill,mud flaps -Install class 5 rear hitch receiver with wiring and iCC bumper Lead time for truck crane 12 weeks currently 1 -Flatbed 9'x 96"Cadet Steel"Metro"flatbed with Class 5 trailer hitch and wiring € Labor. Install trailer hitch and Tway trailer Wring 3.00 hrs 8420.00 Install I flatbed,mud Flaps,fuel fill,and wire lights 12.00 hrs $1,66D.00 Parts: Cadet Metro-T-96"-1/8"Treadplate-42"Header-Full Width Window-M1089634 1 $5,400.00 Draw-rite Ford cab/chassis F350/450/550 Class 5 2"receiver trailer hitch 18,000lbs capacity- 1 $gg5.25 41953 2020+Ford Super Duty Chassis E Mudflap Bracket-MFBH2375A 1 $29 60 4 CONNECTOR,TRAILERDUAL PLUG,7 WAY&4-BUYTC1774P 1 $30.00 Heavy Duty Black Rubber Mudflap 24x36 Inch-B36LP 2 $92.04 Chrome Plated Anti-Sail Brackets 26.13x21 Inch-BUY405BC 2 $7B.42 I iFees: Hazardous Material $25.00 i Shop Supply $125.00 i ]CC bumper $295.00 #I Misa Supplies $0.00 ©APPROVE or ❑DECLINE $9,070.31 2-Tiger Crane Labor. Brace up flatbed an passenger side for mounting of crane 14.00 hrs $1,96C.00 Install crane and wire to truck batte y 8.00 hrs $1,120.00 Fabricate 30"crane pedestal,painted black 8.00 hrs $1,120.00 } Part Tiger Crane Model 3216E Tiger 12V Electric Hydraulic Crane,3,200lbs capacity,12,500ft-lb rating,16.5'of reach,wireless remote,painted standard white-ST1692221-5&692305 1 $18,095.00 I Fees: Shop Supply $25.00 ` Hazardous Material $25.00 l, Steel,Hardware,paint,battery cable $995.00 Freight $1,950.00 Sublet,suspension alteration for passenger side that crane sits on to keep truck level/stable $950.00 I ❑APPROVE or ❑DECLINE $26,240.00 I hereby authorize the above parts to be ordered and agree to the parts retum poticy. PARTS RETURN POLICY *15%restocking fee on all accepted returned parts-*Customers will be charged for all freight. 1 fit { The following parts CANNOT be returned for credit ! Parts ordered for/by a specific;;nit S/N,Used parts Parts the mfg-will not accept,Damaged parts Electrical components,or Parts purchased more than(30)days prior. Deposits on equipment/special orders is NON REFUNDABLE Quoted FOB Factory with full freight allow. Estimate valid for 30 days 3%charge will he added to all credit card payments INVOICES OVER 30 DAYS WILL BE CHARGED A 3%FINANCE CHARGE 5,,;c L T u€�' S 3 j 0.- Quality Equipment Sales&Service-RO#38681 �C14 Printed on 10/24/23-Page 1 of 2 Total Repair Order & Signature: Total Labor: $6,300.00 Total Parts: $24,620.31 Total Fees: $4,390.00 Subtotal: $35,310,31 X Grand Total: $35,310.31 ------------------------------------------------------------------.. 13ALANCEDUE: $35,310.31 Quality Equipment Sales&Service-R04 38681 Printed on 10/24/23-Page 2 of 2 62 • AMP Resolution 2023-122 Authorizing the City Manager to enter into a purchase agreement with LiftOff LLC for a one-year renewal of the City's Microsoft 365 licensing subscription, in the amount of $46,000.80. Documents: • Agenda Statement • Resolution 2023-122 • Attachments: o Quote 63 City Council Agenda Statement Meeting Date: November 13,2023 To: City Council Through: Kat Sorensen, City Manager From: Dustin Phillips,IT Director Subject: Resolution 2023-122: Authorizing The City Manager To Enter Into A Purchase Agreement With LiftOff LLC For A One-Year Renewal Of The City's Microsoft 365 Licensing Subscription,In The Amount Of$46,000.80. Background and justification: The City of Seward currently has a yearly subscription for Microsoft 365 licenses sold through Liftoff LLC. These licenses enable City staff to have access to our email system, Microsoft Office software suite and additional Microsoft collaboration software tools. These subscriptions are good for a 12-month period running from 11/23/23 to 11/22/24. By keeping the licenses active it will enable our staff to continue to have access to their email and office software,both of which are vital to their ability to perform their duties. This subscription also ensures that City computers have access to the most recent versions of the Microsoft Office software packages while continuing to receive the latest security updates and patches for those pieces of software. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.3 Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 46,000.80 This legislation(✓): Creates revenue in the amount of: $ ✓ Creates expenditure in amount of. $ 46,000.80 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): ✓ Budgeted Line item(s): 01000-1121-7022 Not budgeted Not applicable 64 Fund Balance Information Affected Fund(✓): ✓ General SMIC Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance $ Finance Director Signature: Attorney Review Yes Attorney Signature: ✓ Not applicable Comments: Administration Recommendation �✓ Adopt Resolution Other: 65 Sponsored by: Sorensen CITY OF SEWARD,ALASKA RESOLUTION 2023-122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH LIFTOFF, LLC. FOR ONE-YEAR RENEWAL OF THE CITY'S MICROSOFT 365 LICENSING SUBSCRIPTION,IN THE AMOUNT OF$46,000.80 WHEREAS, The City of Seward currently has a yearly subscription for Microsoft 365 licenses sold through Liftoff LLC; and WHEREAS,These licenses enable City staff to have access to our email system,Microsoft Office software suite and additional Microsoft collaboration software tools; and WHEREAS, These subscriptions are good for a 12-month period running from 11/23/23 to 11/22/24; and WHEREAS, By keeping the licenses active it will enable our staff to continue to have access to their email and office software, both of which are vital to their ability to perform their duties; and WHEREAS, This subscription also ensures that City computers have access to the most recent versions of the Microsoft Office software packages while continuing to receive the latest security updates and patches for those pieces of software; and 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 enter into a purchase agreement with Liftoff LLC for the renewal of Microsoft 365 license subscriptions for the period of 11/23/2023-11/22/2024. Section 2. Funding in the amount of $46,000.80 is hereby transferred and appropriated from account 01000-1121-7022. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 13th day of November 2023. THE CITY OF SEWARD,ALASKA Sue McClure,Mayor 66 CITY OF SEWARD,ALASKA RESOLUTION 2023-122 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 67 LIFT QUOTE as of 10/20/2023 Bill to: Ship to: City of Seward,AK City of Seward,AK 410 Adams Street 410 Adams Street City Hall Building City Hall Building Seward,AK 99664 Seward,AK 99664 Reseller (Remit To): Liftoff LLC Attn: Ron Braatz 1667 Patrice Circle Crofton,MD 21114 Terms: Due on Receipt Payment Options: ACH Payment (preferred) or check Quote Description G SKU Item Name Part Number Term in Price/User/ Licenses Cost/Year Months Month Office 365 Plan G3 AAA-11894 12 23.00 120 $33,120.00 Exchange Online Plan 1 3MS-00001 12 4.00 30 $1,440.00 Exchan eOnlitieArchivin 4ES-00001 12 3.00 30 $1,080.00 Azure AD Prem P1 MQM-00001 12 5.70 147 $10,054.80 Azure AD Prem P2 MQN-00001 12 8.50 3 $306.00 Liftoff Licensing Benefits - - - - INCLUDED Total: $46,000.80 *LIFTOFF LICENSING BENEFITS: As a valued licensing customer,LiftOff offers you a range of free, ongoing services to your organization. This includes: Access to our library of Office 365 Admin best practice documents, our library of end-user training videos, AD Connect support including re- installations and troubleshooting, invitations to our Office 365 Security webinars and access to the recordings, limited free consultations on implementation processes like the "Office Deployment Tool", annual Office 365 health check-ups and security check-ups, and support for compliance/re- tention features including ongoing training to staff that need to conduct compliance retention searches. ©2023 LiftOff,LLC. All Rights Reserved www.Liftoff0nline.com 68 Pricing Information: • All prices are displayed in United States Dollars. • Product and pricing data are updated frequently and may change without notice. • Pricing valid for 14 days • License orders are paid up front,are non-refundable,and are one-year licenses that renew each year. • License reductions,upgrades,or cancellations may only occur at the annual renewal date. In order to proceed,send a Purchase Order to 365licensingkliftoffonline.com.Once we have the Pur- chase Order, we will order the licenses from Microsoft. We will immediately invoice the full amount when we place the order. Customer Terms for Cloud Services Agreement US Public Sector This agreement is between LiftOff LLC ("we", "us", and "our") and Seward, AK ("you" and "your'. It is effective when we accept it.Key terms are defined in 5 8. 1. General. Right to use. You may access and use Office 365, and install and use a Client (if any) included with your Subscription,only as described in this agreement.All other rights are reserved. Acceptable use. You will use Office 365 only per the AUP. You will not use Office 365 in any way that infringes a third party's patent,copyright,or trademark or misappropriates its trade secret.You may not reverse engineer,decompile,work around technical limits in,or disassemble Office 365,except if applicable law permits despite this limit.You may not rent,lease,lend,resell,transfer,or host Office 365 to or for third parties. Compliance. You will comply with all laws and regulations applicable to your use of Office 365.In providing Office 365,we and our Providers will comply with all laws and regulations (including applicable security breach notification law)that generally apply to IT service providers.You will obtain any consents required: (1)to allow you to access,monitor,use,and disclose user data;and(2)for us to provide Office 365.If you are an educational institution,you will obtain any parental consent for end users'use of Office 365 as required by applicable law. Customer Data. Customer Data is used only to provide you Office 365.This use may include troubleshooting to prevent,find and fix problems with Office 365's operation.It may also include improving features for finding and protecting against threats to users. Neither we nor our Providers will derive information from Customer Data for any advertising or other commercial purposes. We will enable you to keep Customer Data separate from consumer services. Customer Data will not be disclosed unless required by law or allowed by this agree- ment.Your contact information may be provided so that a requestor can contact you.If law requires disclosure, we will use commercially reasonable efforts to notify you,if permitted. Customer Data may be transferred to, and stored and processed in, any country we or our Providers maintain facilities, unless you provision your tenant in the United States, If you do,Microsoft will provide Office 365 from data centers in the United States, and storage of the following customer data at rest will be located in data centers only in the United States: (i) Exchange Online mailbox content(e-mail body, calendar entries, and the content of e-mail attachments), and (ii) SharePoint Online site content and the files stored within that site. ©2023 LiftOff,LLC. All Rights Reserved www.lditoffOnline.com 69 Changes. Office 365 may be changed periodically,after which you may need to agree to new terms.You may be required to run a client software upgrade on devices using Office 365 after a change to maintain full func- tionality. Use rights. Use rights specific to Office 365 are posted online at the link to the AUP. 2. Confidentiality and Security. We and our Providers will (a) maintain appropriate technical and organizational measures, internal controls, and data security routines intended to protect Customer Data against accidental loss or change,unauthorized disclosure or access, or unlawful destruction and (b) not disclose Customer Data, except as required by law or expressly allowed. Neither party will make any public statement about this agreement's terms without the other's prior written consent. 3. Term, Termination, and Suspension. Term and termination.This agreement will remain in effect for three years subject to your right under appli- cable law to terminate for convenience. Customer Data.You may extract Customer Data at any time. If your Subscription expires or terminates,we will keep your Customer Data in a limited account for at least 90 days so you may extract it. We may delete your Customer Data after that. Regulatory. If a government rule or regulation applies to us or our Providers,but not generally to other busi- nesses, and makes it difficult to operate Office 365 without change, or we or our Providers believe this agree- ment or Office 365 may conflict with the rule or regulation,we may change Office 365 or terminate the agree- ment.If we change Office 365 to come into compliance,and you do not like the change,you may terminate. Suspension.We may suspend use of Office 365: (1) if reasonably needed to prevent unauthorized Customer Data access; (2) if you do not promptly respond under 55 to intellectual property claims; or (3) for non-payment; or (4) if you violate the AUP. A suspension will be in effect only while the condition or need exists and,if under clause (1) or (2),will apply to the minimum extent necessary.We will notify you before we suspend,unless doing so may increase damages.We will notify you at least 30 days before suspending for non- payment. If you do not fully address the reasons for suspension within 60 days after we suspend, we may terminate your Subscription. 4. Limited warranty, disclaimer. We warrant that Office 365 will meet the SLA terms during the Subscription;your only remedy for breach of warranty is stated in the SLA. AVe provide no (and disclaim to the extentpermitted by laav any) other avarranties, express, iVlied, or statutory, including nlarranties of merchantability orfanessfor a particularpurpose. 5. Duty,to protect. Defense.We or our Providers will defend you against any claims made by an unaffiliated third party that Office 365 infringes its patent, copyright,or trademark or misappropriates its trade secret. Remedies.If we or our Providers reasonably believe that a claim under 55 may bar your use of Office 365,we or our Providers will seek to: (1) obtain the right for you to keep using it; or (2) modify or replace it with a functional equivalent and notify you to stop use of the prior version. If these options are not commercially ©2023 LiftOff,LLC. All Rights Reserved www.Liftoff01ili1ie.com 70 reasonable,we or our Providers may terminate your rights to Office 365 and refund any payments for unused Subscription rights. Other obligations. To the extent permitted by law, you will (1) notify us promptly of a claim under this 55 and (2) allow us or our Providers to assist in your defense or settlement.You will provide reasonable help to defend.We or our Providers will reimburse you for reasonable out-of-pocket expenses incurred in giving that help and pay the amount of any resulting adverse final judgment (or settlement the protecting party consents to). Neither we nor our Providers will be bound by any settlement to which we do not agree in writing,this 5 5 provides the exclusive remedy for these claims. Limits. The obligations of us and our Providers in this �5 won't apply to a claim or award based on: (1) Customer Data; (2) software not provided by us or our Providers; (3) modifications you make to Office 365, or materials you provide or make available as part of using Office 365;(4)your combination of Office 365 with, or damages based on the value of,a product,data,or business process not provided by us or our Providers;or (5) your use of a Microsoft trademark without their express,written consent, or your use of Office 365 after being notified to stop due to a third-party claim. 6. Limited liability. Each party's (and our Providers') maximum aggregate liability for any claim related to this agreement is limited to direct damages up to the fees that you paid for Office 365 during the 12 months before the claim arose (or $5,000.00 if you paid no fees). Neitherpary nor our Providers will be liable for lost avenues or indirect, special, incidental, consequential,punitive, or exemplary damages, even if the part'knee they mere possible.The limits and exclusions in this 56 apply to the extent permitted by law,but do not apply to (1) obligations under 55; or (2) intellectual property infringement or misappropriation. 7. Agreement mechanics. You must send notice by regular mail, return receipt requested, to the address on the Portal (effective when delivered).We may email notice to your account administrators (effective when sent).You may not assign this agreement, or any right or duty under it. If part of this agreement is held unenforceable, the rest remains in force.Failure to enforce this agreement is not awaiver.The parties are independent contractors.This agreement does not create an agency, partnership, or joint venture.This agreement is governed by the laws applicable to Customer,without regard to conflict of laws.This agreement(including the SLA and AUP) and our price sheet are the parties'entire agreement on this subject and supersedes any concurrent or prior communications.Agree- ment terms that require performance, or apply to events that may occur, after termination or expiration will survive,including 55. Office 365 and the Client are subject to U.S. export jurisdiction.You must comply with the U.S.Export Administration Regulations,the International Traffic in Arms Regulations,and end-user,end- use,and destination restrictions. For more information,see http://www.microsoft.com/exporting/. Our Pro- viders may deliver Office 365, and the rights granted to us also apply to them. 8. Definitions. "AUP"means the acceptable use policy at http://www.microsoftvolumehcensing.com/Down- loader.aspx?D ocumentld=5502. "Client"means device software that we or our Providers provide you with Office 365. "Customer Data"means all data,including all text,sound,or image files that are provided to us or our Providers by,or on behalf of,you through your use of Office 365. ©2023 LiftOff,LLC. All Rights Reserved www.lditoffOnline.com 71 "Office 365"means (1) Exchange Online, Exchange Online Archiving, SharePoint Online,Lync Online,and Office Web Apps included in Office 365 Enterprise Plans E1,E2,E3, E4, K1, and K2; and Office 365 Gov- ernment Plans G1,G2,G3,G4,K1,and K2;and(2)Exchange Online Archiving;Exchange Online Protection; Exchange Online Plans 1, 2, Basic, and Kiosk; SharePoint Online Plans 1, 2, and Kiosk; Office Web Apps Plans 1 and 2; and Lyric Online Plans 1,2,and 3. "Portal"means the Online Services Portal for Office 365 (see http://www.microsoft.com/online). "Providers" means our affiliates, licensors, and suppliers, including Microsoft and its applicable affiliates. "SLA"means the service level commitments we or our Providers make regarding delivery and performance of Office 365 (see http://www.microsoft.com/licensing/contracts). "Subscription"means an order for a quantity of Office 365. ©2023 LiftOff,LLC. All Rights Reserved www.lditoffOnline.com 72 • AMP Resolution 2023-123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE FOUR (4) 2024 CHEVROLET TAHOE POLICE PACKAGE VEHICLES FROM SWICKARD AUTO GROUP UNDER THE STATE OF ALASKA FLEET VEHICLE CONTRACT, WITH ASSOCIATED UPFITTING AND POLICE SPECIFIC EQUIPMENT, RADIO EQUIPMENT, SPARE WHEELS, AND STUDDED TIRES IN AN AMOUNT NOT TO EXCEED A TOTAL COST OF $311,838.20. Documents: • Agenda Statement • Resolution 2023-123 • Attachments: o Quote from Swickard Auto Group (vehicle) o Quote from Swickard Auto Group (Studded Tires and Wheels) o Quote from Alaska Safety o Quote from Procomm Alaska o Quote from The Printer o Quote from Alyeska Tire (Studded Tires and Wheels) o Listing of companies we requested to provide tire quotes who failed to respond. 73 City Council Agenda Statement . Meeting Date: November 13, 2023 To: City Council Through: Kat Sorensen, City Manager From: Chief Alan Nickell Subject: Resolution 2023-123: Authorizing The City Manager To Purchase Four(4) 2024 Chevrolet Tahoe Police Package Vehicles From Swickard Auto Group Under The State Of Alaska Fleet Vehicle Contract, With Associated Upfitting And Police Specific Equipment,Radio Equipment, Spare Wheels, and Studded Tires In An Amount Not To Exceed A Total Cost of $311,838.20 Background and justification: The Police Department deploys several police vehicles which are aging and need to be replaced in a timely manner to keep the city's police officers safe and properly equipped while performing their patrol duties. For the 2023-2024 budget, the purchase of four (4) Tahoe's was included and approved by the council. These will be the only vehicles purchased for the police department during the current budget cycle. The vehicles will be purchased under the State of Alaska contract through Swickard Auto Group in Anchorage, Alaska. The cost of the 4 vehicles under the contract will be $52,070.00 ea. for a total cost of$208,280.00. Alaska Safety is the only service within hundreds of miles who outfits police vehicles. They will be utilized for the vast majority of equipment and upfit of vehicles. This will include items like prisoner cages, gun locks, radar installation, video installation, console reconfiguration, all emergency lighting, and labor. This purchase for all 4 vehicles will cost$16,380 ea. for a total of$65,520. ProComm Alaska is the local Motorola vendor and has been used by the city for decades. They will provide in-car radios for all 4 vehicles at a total cost of$27.571.00. The purchase of the vehicle decals will be through"The Printer"in Anchorage,Alaska for a total of $3,020.00. They have provided the police department decals for decades. The installation of the decals will be done by Alaska Safety and the labor cost is included in the previously listed price. Finally, spare wheels and studded tires for the vehicles will be purchased through Alyeska Tire at a cost of$7447.20 total. Funding for this purchase is available in the Motor Pool Fund account 903000-1210-8103 for a total amount of$311,838.20. 74 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: (Page 14) Section: Public Safety Strategic Plan: Other: (Page 18) Section: Promote a Safe Community Certification of Funds Total amount of funds listed in this legislation: $ 311,838.20 This legislation (✓): Creates revenue in the amount of: $ ✓ Creates expenditure in amount of: $ 311,838.20 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): ✓ Budgeted Line item(s): Motor Pool Not budgeted Not applicable Fund Balance Information Affected Fund (✓):03000-1210-8103 General SMIC Electric Wastewater Boat Harbor Parking F1 Water Healthcare ✓ Motor Pool Other Note:amounts are unaudited Available Fund Balance 10/31/23. $ 2,292,976 Finance Director Signature: --~ Attorney Review FYes Attorney Signature: ] Not applicable Comments: Administration Recommendation ✓ Adopt Resolution Other: 75 Sponsored by: Sorensen CITY OF SEWARD,ALASKA RESOLUTION 2023-123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO PURCHASE FOUR (4) 2024 CHEVROLET TAHOE POLICE PACKAGE VEHICLES FROM SWICKARD AUTO GROUP UNDER THE STATE OF ALASKA FLEET VEHICLE CONTRACT, WITH ASSOCIATED UPFITTING AND POLICE SPECIFIC EQUIPMENT, RADIO EQUIPMENT, SPARE WHEELS, AND STUDDED TIRES IN AN AMOUNT NOT TO EXCEED A TOTAL COST OF $311,838.20. WHEREAS,the police department deploys several vehicles which are aging and need to be replaced to ensure the safety of the police officers in their emergency roles; and WHEREAS, the purchase of four (4) Chevrolet Tahoe Police Package Vehicles has been included in the 2023-2024 police department budget; and WHEREAS, the vehicles may be purchased using the state competitive purchasing contract for $52,070.00 ea. for a total cost of$208,280.00; and WHEREAS, each police vehicle must be professionally equipped with police equipment including prisoner cages, radars, gun racks, extra emergency lighting, and graphics to identify the vehicles as a police vehicle, etc.; and WHEREAS, Alaska Safety is the only company who performs upfitting of police and emergency vehicles anywhere in a radius of Seward extending hundreds of miles; and WHEREAS,Alaska Safety will provide upfitting of police equipment for each vehicle for a total of$65,520.00; and WHEREAS, ProComm Alaska is the Motorola vendor in Alaska, in-car police radios will be purchased for each vehicle at a total cost of$27,571.00; and WHEREAS, the graphic detailing of the vehicles to identify them as Seward Police Department vehicles will be completed by The Printer in Anchorage, Alaska for a total of $3,020.00. The installation of the decals will be done by Alaska Safety and the labor cost is included in the price previously listed.; and WHEREAS, due to the winter conditions of Alaska the vehicles will be equipped with studded tires and wheels from Alyeska Tire at a total cost of$7,447.20; and WHEREAS,the City Council has determined that the public interest would be best served by not requiring competitive bids and makes the following findings: 1. Seward City Code Section 6.10.120 (a) (9) provides for the purchase of electronic data 76 CITY OF SEWARD,ALASKA RESOLUTION 2023-123 processing software and hardware systems and communications equipment; and 2. Seward City Code Section 6.10.120 (b) provides the city may utilize competitive bids obtained by other governmental units; and 3. Swickard Auto Group has been awarded the contract to provide patrol vehicles to the State of Alaska, and the City of Seward may purchase patrol vehicles under this contract at an amount not to exceed $52,070.00 ea.; and 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 enter a purchase agreement with Swickard Auto Group to purchase four (4) 2024 Chevrolet Tahoe Police Package Vehicles, Alaska Safety to purchase vehicle upfitting and installation of police equipment, ProComm Alaska for in-car radios, The Printer for police department decals, and Alyeska Tire for spare wheels and studded tires. Section 2. Funding in the amount of $311,838.20 is hereby transferred and appropriated from the motor pool fund account 903000-1210-8103 on the FY23 budget. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska this 13th day of November 2023. THE CITY OF SEWARD,ALASKA Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 77 E3Swickard Auto Group Daniel Bacon 1 997 265 7535 1 daniel.bacon@swickard.com Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial Alan D. Nickell Chief of Police Seward Police Department (907) 224-3338 anickell@cityofseward.net 2024 Chevrolet Tahoe Police Pursuit Vehicle (PPV) Model FL Unit Price$52,070, FOB Anchorage, AK Police upfits to be priced as quoted from your selected upfitter. Ship thru upfitter: KERR Industries Local upfitter: Alaska Safety 78 Swickard Auto Group Daniel Bacon 1 907 265 7535 1 daniel.bacon�7a swickard.com Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial { Complete ) Window Sticker SUMMARY [Fleet]2024 Chevrolet Tahoe(CK10706)4WD 4dr Commercial MSRP:$53,450.00 Interior:Jet Black, Cloth seat trim Exterior 1: Exterior 2-No color has been selected. Engine, 5.31-EcoTec3 V8 Transmission, 10-speed automatic OPTIONS CODE MODEL MSRP CK10706 [Fleet]2024 Chevrolet Tahoe(CK10706)4WD 4dr Commercial $53,450.00 OPTIONS 1 FL Commercial Preferred Equipment Group $0.00 5J3 Calibration, Surveillance Made interior lighting tnc. 5J9 Calibration,taillamp flasher, Red/White Inc. 51-0 Calibration, taillamp flasher, Red/Red Inc. 6C7 Lighting, red and white front auxiliary dome $170,00 6E8 Fleet Calibration $25.00 6J7 Flasher system, headlamp and taillamp, DRL compatible with control Inc. wire 6N5 Switches, rear window inoperative $57.00 6N6 Door locks and handles, inside rear doors inoperative S62.00 7X3 Spotlamp,left-hand $800.00 5C1 Identifier for Police Package Vehicle S0.00 9G6 Headlamps, Daytime Running Lamps and automatic headlamp $50.00 control delete AMF Remote Keyless Entry Package $75.00 ATD Seat delete,third row passenger Inc. ATZ Seat delete, second row ($520,00) AX2 Key,unique Inc. AZ3 Seats,front 40/20/40 split-bench $0.00 This document contains information considered Confidential between GM and its Clients uniquely. The information provided is not intended for public disclosure. Prices, specifications,and availability are subject to change without notice,and do not include certain fees.taxes and charges that may be required by law or vary by manufacturer or region. Performance figures are guidelines only,and actual performance may vary. Photos may not represent actual vehicles or exact configurations. Content based on report preparer's input is subject to the accuracy of the input provided. Data Version: 20628. Data Updated: Oct 5,2023 6M:00 PM PDT. Page 2 Oct 6,2023 79 E3Swickard Auto Group Daniel Bacon 1 907 265 7535 1 daniel.bacon@swickard.com Vehicle: [Fleet] 2424 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial complete ) BCV Lock control, driver side auto door lock disable Inc. BTV Remote start $300.00 C6G GVWR, 7600 lbs. (3447 kg) Inc. FE9 Emissions, Federal requirements $0.00 GU5 Rear axle,3.23 ratio $0.00 $0.00 HIT Jet Black, Cloth seat trim $0.00 IOR Audio system, Chevrolet Infotainment 3 system, 8"diagonal FED color $0.00 touchscreen J55 Brake system, heavy duty Inc. K3W Battery, 850 cold-cranking amps with 95 amp hour rating Inc. K6K Battery, auxiliary, 760 cold-cranking amps with 70 amp hour rating Inc. KX4 Alternator, 250 amps Inc. L84 Engine, 5.3L EcoTec3 V8 $0.00 MHU Transmission, 10-speed automatic Inc. PXT Wheels, 20"x 9" (50.8 cm x 22.9 cm)steel Inc. R9L Deleted 3 Years of Remote Access. ($300.00) RAV Tire, spare 275155R20 all-season, blackwall. Firestone Firehawk Inc. Pursuit RC1 Skid plate,front Inc. RNQ Wheel,full-size spare, matching 20" (50.8 cm)steel wheel without Inc. center cap T66 Wiring provision, for outside mirrors and cargo side mirrors Inc. UN9 Radio Suppression Package.with ground straps $95.00 UT7 Ground wires, blunt cut cargo area and blunt cut console area Inc. UTQ Theft-deterrent system S50.00 V03 Cooling system, extra capacity Inc. V53 Luggage rack side rails, delete Inc. V76 Recovery hooks, 2 front,frame-mounted, Black S50.00 VK3 License plate front mounting package $0.00 VPV Ship Thru, Produced in Arlington Assembly and shipped to Kerr $0.00 Industries and onto Arlington Assembly VXT Incomplete vehicle Inc. This document contains informat€on considered Confidential between Glut and its Clients bniqueiy. The information provided is not intended for public disclosure. Prices, specifications,and availability are subject to change without notice,and do not include certain fees,taxes and charges that may be required by law or vary by manufacturer or region, Performance figures are guidelines only,and actual performance may vary. Photos may not represent actual vehicles or,exact configurations. Content based on report preparers input is subject to the accuracy of the input provided. Data Version: 20628. Data updated: Oct 5,2023 5:38:00 PM PDT, Oct 6,2023 80 Page 3 Swickard Auto Group Daniel Bacon 1 907 265 7535 1 daniel.bacon@swickard.com Vehicle: [Fleet] 2024 Chevrolet Tahoe (CK10706) 4WD 4dr Commercial Complete ) VZ2 Speedometer calibration Inc. WLIA Fascia,front high-approach angle Inc. XCS Tires, 275155R20SL all-season, blackwall, Firestone Firehawk Inc. Pursuit Z56 Suspension Package, heavy-duty, police-rated. Inc. Capless Fuel Fill Inc. Exterior ornamentation delete Inc. Instrumentation, analog Inc. Theft-deterrent system, vehicle, PASS-Key Ill Inc. Power supply, 50-amp, power supply, auxiliary battery Inc. Power supply, 100-amp,auxiliary battery, rear electrical center Inc. Power supply, 120-amp, (4)30-amp circuit, Primary battery Inc. Seat belts, 3-point,all seating positions Inc. Protected idle Inc. SUBTOTAL $54,364.00 Adjustments Total $0.00 Destination Charge $1,995.00 TOTAL PRICE $56,359.00 FUELEGONOMY Est City:14(2023) MPG Est Highway:20(2023)MPG Est Highway Cruising Range:480.00 mi This document contains information considered Confidential between GM and its Clients uniquely. The information provided is not intended'.for public discWwre. Prices, specifications,and availability are subject to change without notice,and do not include certain fees,taxes and charges that may be required by law or vary by manufacturer or region. Performance figures are guidelines Only,and actual performance may vary. Photos may not represent actual vehicles or exact configurations. Content based on report preparer's input is subject to the accuracy of the input provided. Data Version: 20628. Data Updated: Oct 5,2023 6:38:00 PM PDT. oct 6,2a23 Page 4 81 Swickard Chevrolet Buick GMC PQ724 Cadillac of Anchorage 0 , "'�` LttCIK 1300 E 5th Ave V Anchorage, AK 99501 � csmc 800-250-6883 www.swickardanchorage.com TAX EXEMPT NUMBER CUST.P.0.NO, SHIP VIA PAY SOLD By 2657706 ON FILE CHARGE STEW PLOUVTER 10/27/23 PQ724 AJACOBSLCITYOFSEWARD.NET C 1W 907-2.24-4059 I CITY OF SEWARD L H L PO BOX 167 P T SEWARD, AK 99664-0167 T 0 0 QUANTITY BIN LIST NET AMOUINTEXT.COMP EXT.COST 4 0 84947815 WHEEL 5.803 N M909 416.46 324.19 1296.76 4 0 13542523 SENSOR 5.890 Y M212 41,61 27.06 108.20 DAN B 4 0 10267891PIKE2755 MLOC 308,75 308.75 1235.00 AMT N 0 Li N a a. "x U a RETURNIREFUND POLICY.ALL RETURNS MUST BE ACCOMPANIED BY THIS INVOIOF AND ARE SUBJECT TO A 204e SUBTOTAL 26,`i'9.56 RESTOCKING CHARGE.REiURNEO ITEMS MUST BE IN THE ORIGINAL UNOPENED BOX OR CONTAINER.PLEASE NOTE THAT THE DEALERSHIP WILL NOT ACCEPT RETURNS OR MAKE REFUNDS AFTER Sp DAYS.NO REFUNDS OR RETURNS ON SPECIAL ORDER PARTS.ELECTRICAL PARTS OR PAINTED TRIM ITEMS. RESTOCK CHARGE 0.00 DISCLAIMER OF WARRANTY: ALL PARTS AND ACCESSORIES ARE SOLD BY THE DEALERSHIP AS-I^q. ANY WARRANTIES ON THE PARTS OR PRODUCTS DESCRIBED ABOVE ARE THOSE OF THE MANUFACTURER OR TAX O,Op DISTRIBUTOR OF THE PARTS OR PRODUCTS-THE DE&ERSHIP HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS AND IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOP A TIRE TAX 10.00 PARTICULAR PURPOSE,WITH RESPECTTOTHE SANIE.THE DEALERSHIP NEITHER ASSUMES NORAU'THORIZES ANY OTHER PERSON TO ASSUME FOR IT ANY LIABILITY IN CONNECTION WITH THE SALE OF SAID PARTS OR PRODUCTS. CUSTOMER SHALL NOT BE ENTITLED TO RECOVER FROM THE DEALERSHIP ANY CONSEQUENTIAL DAMAGES, DAMAGES TO PROPERTY,DAMAGES FOR LOSS OF USE,1088 OF TIME,LOSS OF PROFIT OR INCOME,OR ANY 01HBR INCIDENTAL DAMAGES,THIS DISCLAIMER IN NO WAY AFFECTS THE PROVISIONS OG ANY MANUFACTURER OR DISTRIBUTOR WARRANTIES. FREIGHT 0.00 SIGNATURE X PAY THIS AMOUNT 2649.96 12:47:19 CUSTOMER COPY "' PRICE QUOTE** NET681 PACE 1 OF 1 82 Alaska Safety, Inc. Quotation# Lo! 1' 09 Alaska Safety, Inc. 4725 Gambell Street Account lD Contact Anchorage, AK 99503 00001144 Tammy Nickell Phone: (907) 561-5661 Fax: (907) 561-8484 customer PO Telephone Facsimilie None (907)224-4062 (907)224-4038 Bill To. Ship To. City of Seward* City of Seward* y Accounts Payable ��`? P© Box 167 PO Box 167 410 Adams Street Seward,AK 99664 Seward,AK 99664 Special Order❑ Drop Ship❑ Quote Date Comments Special Instructions s Term 07/31/2023 2023 Tahoe Patrol Vehicle, 1 of 4 NET 30 Ship Via Date Required FOB Prepared By Order# Salesperson UPS GROUND 07/31/2023 Anchorage CV Clint VanNoy Quantity Item# Description Price Total 1 PEC390OU "Siren Speaker,100watt compact,wlmount $250-00 $250,00 EACH 4 ECED5051 RB *LED Directional, Multi Mt. Red/Blue $135-00 $540.00 EACH 12-24V 3 Year Warranly. .6" High x 5.4"Wide. Installed in grill and facing forward on winch bumper. 6 SOEMPS2STS5RBW "MPower 4"LED Light Th Color STUD $135,00 $810.00 EACH mpower 4"Fascia Light wl Stud Mount, 18" hard wire w1 sync option,SAE Class 1 &CA Title 13, 9-32 Vdc, Black Housing, 18 LED, Tri Color-Red/Blue/White Two Installed on rear bumper,and 4 for rear window. 1 R122000 "Radiance PLUS Lightbar 20"WhitelClear $395.00 $395.00 EACH Includes Wire Harness White Backlight. 1 STGK10301 S1 USSCAXL *Dual T-Rail Mount wlLocks, 1small,1XL S450.00 $450.00 EACH Dual T-Rail Mount 1 Small, 1 Universal XL with locks 2 SOPMP2WSDDB *Dual Adj.Windshield Shroud,Mpower $20.00 $40.00 EACH Dual Window Shroud for use with Mpowor-4iricli stud mount lights.Angle Adjustment:3IIil`.VS for v�!rioty if placement options,does not iW;lucir� thF; bill t heads. For use with stud mount mpower lighthead Used for M-Powers listed above for rear window, prevents light from backfiashing into driver. 1 INPOWER Power Distribution System $325.00 $325.00 EACH Consists of the following: Cole Hersee 24117 Solenoid, Blue Seas Fuse Box 5029, Bussman Cirquit Breaker# Cb 185-50 1 LABOR Install Shop Labor $2,875.00 $2,875.00 HOUR Install customer supplied radio and AXON Video Equipment as well installation of upfitting the PIU for patrol duties. Oate Printed 07i3V2023 If Total Price is not s8s,see next page. Page#1 ������� ������v Inc. �������^����� Alaska— Safety, . . �� ��~" " 0511 Alaska Safety, Inc. 4725 (]annbeUStreet AccountlD Contact Anchorage, AKS8503 00001144 Tammy Nickell Phone: /8D7\ 501'5881 Fev (907) 561-8484 Bill To: Ship To: City of Seward* City of Seward* Accounts Payable PO Bc)x 167 PO Box 167 410 Adams Street Seward,AK 99664 Seward,AK 99664 Special Order Drop Ship UPS GROU 713112023 Anclhoragc Cv Clint VanNoy Quantity Item# Description Price Total 1 PE3492L6S *Siren Light contoUur, Programmable. 8495.00 $406.00 EACH The XCELS/,uokas'` 3'|ove|slide switch �hn,can be pmyram.ned os x/dypunden1, aomij,mynssive.or pn^|,essivo. Tkooniqoepmgnammkv hs`mre,auxiUary uununam |eve| ovWo!sonUxnow iox,pp their eyes on the road, Feo*/ns |nuuuom4uxume bucmiQk*ou buxonx, ,/SL.2| oohflcoUon of switching and programming hunox1uno. 11 built-in automotive style fuses, 1 SDENT21331) ^|ntormec,or Under Mirror LED.Red0Wh|Ve $200.00 $200.00 EACH |n».meo*r LED Ugx|has SQenenoUon3 LED light ke;m, per xxit. 100 Deg me. Dual Cokr, Red and White 1 8OGNT2B3E ^|nmorooc\vr Under Mirror LEo.B|vexNhue $200l0 $200.00 EACH |noamecmr LED Light x,u9Genomdon3 LED light heads per unii 1 BO Degree. Dual Color, B|Lie andvvhi\e 1 JD425'3704 ABS Dual drop in cup holder $45.80 $45.00 EACH 1 |N01K$SU4 *Magnetic Mic Clip Kit. $35.00 $35O0 EACH 1 3OENT38313 °/nteraeoto,Surface Mount, RedAmh|tm $200.08 $200.08 EACH |ntemecto,LED Light has 0 QmnemaUon3 LED light heads per unit. 180 Degree. Dual Color, Red and White Mounted on sides ofpush bumper. 1 SOENT3B3E °|nta,mento,Surface Mount, 8|ueANhite $200D0 $200.00 EACH (ntaroac\orLGD Light has 9Gene,edon3 LED light heads per unit. 18O Degree. Dual Color, Blue and White 1 8OETiSSO'07+ Ignition Security System D7 Anti Theft g95.00 $85.00 EACH Replaces ET|SSO'P (1 Year Warranty) Date Printed V7/31%2U23 |f Total Price|x not shown.see next page, paom#3 �� w� Alaska Safety, Inc, Quotation# j 05110 Alaska Safety, Inc. 4725 Gambell Street Account ID Contact Anchorage, AK 99503 00001144 J TammyNickell Phone: (907) 561-5661 Fax: (907) 561-8484 Customer PO Telephone Facsrmilie None (907)224-4062 (907y 224-4038 Bill To: Ship To: City of Seward* City of Seward" Accounts Payable PO Box 167 PO Box 167 410 Adams Street Seward,AK 99664 Seward,AK 99664 Special Order❑ Drop Ship ❑ {],tote.Date Comments Sped,l Intitruch.ons =ET 0713112023 2023 Tahoe Patrol Vehicle, 1 of 4 30 Ship Via Dale Required 7 Prepared by tOrder�' Salesperson UPS GROUND 0713112023 Anchorage CW Clint VanNoy Quantity Item# Description Price Total 1 INMZL-10 Ignition Sensing Delay Timer,30 amp S95.00 S95.00 EACH Battery guard system Emergency override switch provides a convenient wary to restore power to your eyuiprnent by holding the button in For 5-8 seconds. Protects communication equipment Low vottiaye detector(10.5 v)Over voltage protection (17 v) Automatic On!Off, Very reliable &accurate Programmable with external DIP switch for selecting and adjusting time delay 1 INDECALS Decal Set for Emergency Vehicles. $750.00 S750.00 EACH Install customer supplied Graphics Packur_le 1 MXM84434RW "6" Interior LED Dome DUAL Color S75.00 $75.00 EACH 1 JD425-6678 Tahoe Contour Console wlPrinter Storage $825.00 SB25.00 EACH Chevy Tahoe Integrated PentaxlBrother Contour Console with Locking Lid Storage-(2021+).14"of Equipment Mounting Sp ace Mounting Location for PentaxlBrother PocketJet 617 Printer{and Paper Roll.Loc.kable Storage. Driver's Side Knockatat for Mounting Speaker 1 STWK0514TAH21 Steel Window Barrier, 21+Tahoe, S:310 00 5310 00 EACH For use with stock door panels or Setina TPO Door Panels only 1 STBKO534TAH21 PB400 Pushbumper, Chevrolet Tahoe 2021+ S550.00 $550.00 EACH 1 STPK1155TAH21 10XL RP Partition, 2021+Tahoe, Uncoated S880.00 S8fi0].013 EACH 10XL Horizontal Sliding Window Uncoated Polycarbonaate XL Panel Partition for 2021+ Chevy Tahoe. 1 AD5UT2111 Seat& Rear Partition 21 Tahoe, Center S1,650.00 S1,650.00 EACH Center Pull Seat melts Date Printed 07/31/2623 If"iot;al l'ricra is not shown,see next page. Page#3 85 Alaska Safety, Inc. Quotation# 051109 Alaska Safety, Inc. 4725 Gambell Street Account 1D Contact Anchorage, AK 99503 00001144 Tammy Nickell Phone: (907) 561-5661 Fax: (907) 561-8484 — Customer PU kdfl p[ mr,r Frrc; he None (907) 224-4062 9907)224-4038 Bill To: Ship To: City of Seward` City of Seward` Accounts Payable PO Bux 167 PO Box 167 410 Ada rns Street Seward,AK 99664 Seward,AK 99664 Special Order❑ Drop Ship❑ C.�llolE [7,it[� Comments Special Instructions Terms 07/31/2023 2023 Tahoe Patrol Vehicle, 1 of 4 NET 30 �2ec�rrired f=C]Ei Prepared By Order# Salesperson UPS GROUND 07f31f2tl23 Anchorage CV Clint VanNoy Quantity Item# Description Price Total. 1 WHIX54UFZ Inner Edge,2021 Tahoe,Ten 3-LED modules $1,400.00 $1,400.00 EACH Chevy Tahce, 2021.Ten 3-LED Lamps, SOLOT or DUOT, Upper Front Two Piece Unit, Individual Driver and Passenger Side Units,with Two LED Flashing/Take-Down Red/White on Drivers Sidra. E31uer,NhitU on Passenger Side.White can be trigaereu for take dDwn or scene lighting.(Does not neccessorily HAVE to flash) 1 HSC-ADP-110 Bracket Assembly $40.00 $40,00 EACH Adapter hr,,cket 9,it,allows for mounting a C-UMM monitor mrrun! tr)r� C 'JD-100 Series.Universal adapter plate.2.'I ia}ches, hiyi} x 4.ti25 1nc:t}es wide x 4.105 inches long. 1 HSC-KBM-202 Rugged Keyboard Mount and Adapter $250.00 $250.00 EACH Rugged keyboard mount and adapter combination. Allows for quick, reliable, and secure mounting and unmounting of 3rd party keyboards- 1 HSDS-DELL•608 Docking Station, Dell 722017212 Tablets $900.00 $900.00 FAC:H Dockinrl Station Fcar I)ell 7?20& 7212 Tablets With Standard Port Replica'on& LIND Power Supply. 1 HSC-UMM-103 Universal Monitor Mount Assembly $200.00 $200.00 EACH Configurable for many universal computer monitors including VESA(video Electronics standards association)standard,75 hole pattern: 75mm x 75mm 1 HSPKG-PSM-3003 Premium Pass,Side Computer Mnt,19 Chev $850.00 $850.00 EACH 2O19 Chevrolet Silverado/t MC Sierr} 1500,2500& 3500 Premium Passenger Sido MULIr}! Pac ;r;o.Premium PKG-PSM p ick;rge. ;i},.:t,des a heavy-d.ily vehir,4� �;I}eclfic plate. heavy-duty pole with height adjust handle, swing arrn motion device with tilt-swivel and stability support arm 'Compatible with 2021 Tahoe— _JFi 1 IN93904 Printer Kit, Includes both cables/paper $450.00 $450.00 EACH ISO printer USB Vohicle kit. Includes 14'power cable, 6' USB C ahlFr rind mw roll of l}r3;7a r. Date Printed 07131/2023 It dotal Price is not shown,see next page. Page#4 86 Alaska Safety, Inc. Quotation# Alaska Safety, Inc. 4725 Gambell Street Anchorage, AK 99503 Account ID Coy i ict Phone: (907) 561-5661 Fax: (907) 561-8484 00001144_ _f _ Tammy Nickell Cuslorner F10 itdk'l)[)Ul U, Facsimilie, None l (907)2244062 (907)224-4038 Bill To: Ship To: City of Seward* City of Seward" Accounts Payable PO Box 167 P!') 9ox 1)7 410 Adams Street Sr<<,varr!.AK 99664 Seward,AK 99664 Special Order❑ drop Ship❑ -i 1:;o:e 111te Comments 5pecia)Instrnrctinns n 07131l2023 2023 Tahoe Patrol Vehicle, 1 of 4 ET 3D Shi;r Vr:r Date Required FOB Prepared By Ordertl Salesperson UPS GROUND M3112023 Anchorage CV Clint VanNoy Quantity Item# Description Price T Total Comments l t s qualaticn is good for 30 days from the date listed above.Thank you for the opportunity! Sub Total $16,38r1 r}(t EXMT 0%Tax Freight Grand Total Deposit 50.U0 Approved By: Date Balance $16,380.00 Date Printed 07131/2023 If Total Price is nctg7gn,see next page. QUOTE-2254386 MOTOROLA SOLUTIONS N i 1 V a � 0 IIIII u � �k ¢ 'w III to •y `�.. - SEW w y w n .. 1 . , CITY OF 4 A P • 00 f PD or • 08/01/2023 The design,technical,pricing,and other information("Information")furnished with this submission is confidential proprietary information of Motorola Solutions,Inc.or the Motorola Solutions entity providing this quote ("Motorola")and is submitted with the restriction that it is to be used for evaluation purposes only.To the fullest extent allowed by applicable law,the Information is not to be disclosed publicly or in any manner to anyone other than those required to evaluate the Information without the express written permission of Mo ro MOTOROLA,MOTO,MOTOROLA SOLUTIONS,and the Stylized M Logo are trademarks or registered tr rks of Motorola Trademark Holdings,LLC and are used under license.All other trademarks are the property oftheir respective owners.0 2020 Motorola Solutions,Inc.All rights reserved. MOrOROLA SOLUTIONS QUOTE-2254386 08/01/2023 SEWARD, CITY OF P O BOX 167 SEWARD,AK 99664 RE: Motorola Quote for 4 APX6500 for New PD Tahoes Dear Jessica Sauer, Motorola Solutions is pleased to present SEWARD, CITY OF with this quote for quality communications equipment and services. The development of this quote provided us the opportunity to evaluate your requirements and propose a solution to best fulfill your communications needs. This information is provided to assist you in your evaluation process. Our goal is to provide SEWARD, CITY OF with the best products and services available in the communications industry. Please direct any questions to Cheryl Moore at cmoore@procommak.com. We thank you for the opportunity to provide you with premier communications and look forward to your review and feedback regarding this quote. Sincerely, Cheryl Moore Motorola Solutions Manufacturer's Representative 89 MOrOROLA SOLUTIONS QUOTE-2254386 4 APX6500 for New PD Tahoes Billing Address: Quote Date:08/01/2023 SEWARD, CITY OF Expiration Date:09/30/2023 P O BOX 167 Quote Created By: SEWARD, AK 99664 Cheryl Moore US cmoore@procommak.com End Customer: SEWARD, CITY OF Jessica Sauer jsauer@cityofseward.net 907-224-4038 Contract: 19860- NASPO 00318 Item Number Description Qty List Price Sale Price Ext. Sale Price , . APXTm 6500/Enh Series ENHANCEDAPX6500 ---------------------------------------------------------------------------------------------------------------------------- 1 M25KSS9PW1 BN APX6500 ENHANCED VHF 4 $3,383.12 $2,469.68 $9,878.72 MOBILE 1 a G792AB ADD:VHF ANT WIDEBAND 4 $83.00 $60.59 $242.36 136-174 MHZ 1 b QA01648AA ADD: HW KEY 4 $6.00 $4.38 $17.52 SUPPLEMENTAL DATA 1 c GA00250AA ADD: WIFI/GNSS STUBBY 4 $110.00 $80.30 $321.20 ANTENNA LMR240 1 d GA00580AA ADD: TDMA OPERATION 4 $495.00 $361.35 $1,445.40 1 e GA01576AB ADD: SMA TO QMA ADAPTER 4 $22.00 $16.06 $64.24 1f G51AU ENH: SMARTZONE 4 $1,320.00 $963.60 $3,854.40 OPERATION APX6500 1 g G67DT ADD: REMOTE MOUNT E5 4 $327.00 $238.71 $954.84 APXM 1 h G78AT ENH: 3 YEAR ESSENTIAL 4 $288.00 $288.00 $1,152.00 SVC 1 i G298AS ENH:ASTRO 25 OTAR W/ 4 $814.00 $594.22 $2,376.88 MULTIKEY 1j B18CR ADD:AUXILIARY SPKR 7.5 4 $66.00 $48.18 $192.72 WATT APX Any sales transaction following Motorola's quote is based on and subject to the terms and conditions of the valid and executed written contract between Customer and Motorola(the""Underlying Agreement"")that authorizes Customer to purchase equipment and/or services or license software(collectively""Products"").If no Underlying Agreement exists between Motorola and Customer,then Motorola's Standard Terms of Use and Motorola's Standard Terms and Conditions of Sales and Supply shall govern the purchase of the Products. Motorola Solutions,Inc.:500 West Monroe,United States-60661—#:36-1115800 90 OTOROLA SOLUTIONS QUOTE-2254386 4 APX65OO for New PD Tahoes Item Number List�r Price Sale Price Ext. Sale Price 1 k G843AH ADD:AES ENCRYPTION AND 4 $523.00 $381.79 $1,527.16 ADP 11 G444AH ADD:APX CONTROL HEAD 4 $0.00 $0.00 $0.00 SOFTWARE 1 m G806BL ENH:ASTRO DIGITAL CAI OP 4 $567.00 $413.91 $1,655.64 APX 1 n GA01670AA ADD:APX E5 CONTROL 4 $717.00 $523.41 $2,093.64 HEAD 10 W22BA ADD: STD PALM 4 $79.00 $57.67 $230.68 MICROPHONE APX 1p G361AH ENH: P25 TRUNKING 4 $330.00 $240.90 $963.60 SOFTWARE APX 2 LSVOOQ00202A DEVICE PROGRAMMING 4 $150.00 $150.00 $600.00 Programming, Encryp Programming and shipping Grand Total $27,571 .00(USD) Notes: • Unless otherwise noted, this quote excludes sales tax or other applicable taxes (such as Goods and Services Tax, sales tax, Value Added Tax and other taxes of a similar nature). Any tax the customer is subject to will be added to invoices. Any sales transaction following Motorola's quote is based on and subject to the terms and conditions of the valid and executed written contract between Customer and Motorola(the""Underlying Agreement"")that authorizes Customer to purchase equipment and/or services or license software(collectively""Products"").If no Underlying Agreement exists between Motorola and Customer,then Motorola's Standard Terms of Use and Motorola's Standard Terms and Conditions of Sales and Supply shall govern the purchase of the Products. Motorola Solutions,Inc.:500 West Monroe,United States-60661—#:36-1115800 91 Page 4 MOTOROLA SOLUTIONS Purchase Order Checklist Marked as PO/Contract/Notice to Proceed on Company Letterhead PO Number/Contract Number PO Date Vendor= Motorola Solutions, Inc. Payment (Billing) Terms/State Contract Number Bill-To Name on PO must be equal to the Legal Bill-To Name Bill-To Address Ship-To Address (If we are shipping to a MR location, it must be documented on PO) Ultimate Address (If the Ship-To address is the MR location then the Ultimate Destination address must be documented on PO ) PO Amount must be equal to or greater than Order Total Non-Editable Format(Word/Excel templates cannot be accepted) Bill To Contact Name& Phone #and EMAIL for customer accounts payable dept Ship To Contact Name& Phone# Tax Exemption Status Signatures (As required) 92 The Printer QUOTE 2415 Spenard Rd Anchorage, AK 99503 Date Quote# 8/2/2023 323-0182 Name/Address Seward Police Department 410 Adams Street PO Box 167 Seward AK 99664 Project Description Qty Rate Total 2024 Chevy Tahoe Decal Sets 4 750.00 3,000.00 Shipping To: 1 20.00 20.00 Seward Police Department PO Box 167 Seward AK 99664 Total $3,020.00 93 E S T=MATE -Ar *—7 6 1 2 5 2 4 Kenai Soldotna K-Beach Homer Ad 200 S.Willow St. 36095 Kenai Spur Hwy. 35095 K-B Dr. 1301 Ocean Dr. 907-283-4821 907-262-5068 907-260-4120 907-235-8441 a Fairbanks Palmer Anchorage fW ���� 3250 Peger Rd. 7260 E.Schelin Spur 9360 Old Seward Hwy. S907-456-8622 907-707-1030 907-222-3768 Z.ocatiori _ K—Beach IQuotas Va13ci for aO Days Sold To: ACCOUNT#: 700297 CITY OF SEWARD PO BOX 167 DATE : 10/20/23 434 6TH AVE jcotter@cityofseward.net SEWARD, AK 99664 PH. (907)561-1837 QUOTATION #: -7612524 Billed By: SALES COUNTER-ST#3 Sold By: S#: Rt: Tx:Y EX#: CT:O A/R:CHARGE Park#/Dely/Pkup: Quantity Product # Size/Description/Mfr# TC MC DP BIN# Unit Price F.E.T. Ext.Amount 16 1026789 2755520 SL W429A IPIKE PRE-STUDDED 2 N SO4 232.95 3727.20 16 STATE TAX NEW TIRE TAX L 2.50 40.00 16 226 20X8 6-55 BLACK STEEL WHEEL 2 G 230.00 3680.00 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ It is recommended that you have us re-torque your new custom wheels after the first 100 miles FREE of charge. ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ WE HAVE THE TIRES IN STOCK!! NEED TO ORDER WHEELS WILL TAKE TWO WEEKS! ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Merchandise Services 6 Other F.E.T. Subtotal Sales Tax Total 7407.20 40.00 0.00 7447.20 0.00 7447.20 Notes: PO# Terms: DUE DATE AMT. DUE Misc. Adj. . . . . . . . $ 0.00 Cash or Check #: $ 0.00 Credit Card. . . $ 0.00 Balance. . . . : 0 . . . $ 7447.20 Received By: << Page 1 of 1 >> Alyeska Tire would like to thank you for your patronage. We are committed to providing you with unmatched service and products. It is Alyeska Tires policy to hand torque all lug nuts to vehicle manufactures specifications.After a vehicle leaves our shop, it is the customer's responsibility to periodically check, re-torque,and ensure all lug nuts remain at the proper torque. Alyeska Tire provides re-torque service FREE of charge. Like us on Facebook,Twitter, Instagram&TikZoJc or visit us online at www.alyeskatire.com MEMORANDUM Date: 10/30/2023 04 .; of To: Kat Sorensen From: Chief Alan Nickell Subject: Attempt to source quotes City Manager Sorensen, We made several attempts to gather complete quotes for studded tires and steel wheels for our upcoming 2024 police vehicle purchase with limited to no success from the following companies: Quality Tire & Auto Service 907-522-0181 Studded tires full set$1400.00 Unable to get wheels Alaska Tire& Rim 907-563-4395 Blizzak tires full set $1899.00 Quick Lane Tire and Auto 907-260-7130 KD Discount Tire 907-793-8170 Alaska Tire Service 907-562-6288 Tires: $1240.39 (Only One Full set) Hankook Studded Tires Wheels: $316.95 each ION151 Alyeska Tire Kenai 907-283-4821 Alyeska Tire Soldotna 907-262-5068 Only Alyeska Tire and Swickard Auto Group provided complete quotes for the items requested. I have selected Alyeska Tire to proceed with our purchase as they are considerably more affordable than Swickard. Thank you, Chief Nickell 95 Resolution 2023-119 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 4JBC, LLC for the Sale of 18,432 square feet of Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 2015-14 in the Seward Recording District, Third Judicial District, State of Alaska in the amount of$65,000.00. Documents: • Agenda Statement • Resolution 2023-119 • Attachments: o Request to Purchase Lot 2 Blk 4 Fourth of July Creek Subdivision o Purchase and Sale Agreement Exhibit A o Resolution 2020-075 0 4JBC Lease 2020-075 o City Appraisal Lot 2 Blk 4 o Seward Properties Appraisal o Draft Building Plans o Lot 2 Blk 4 Aerial o Plat 2015-14 96 City Council Agenda Statement Meeting Date: November 13,2023 To: City Council Through: Kat Sorensen, City Manager From: Norm Regis,Harbormaster Subject: Resolution 2023-119: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement with 4JBC, LLC for the Sale of 18,432 square feet of Lot 2 Block 4, Fourth of July Subdivision, Seward Marine industrial Center, Kenai Peninsula Borough, Raibow Replat, Plat No. 2015-14 Seward Recording District, Third Judicial District, State of Alaska in the Amount of$65,000 Background and justification: 4JBC, LLC (Patrick Marrs) currently owns Lot lA Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 2015-14 in the Seward Recording District, Third Judicial District, State of Alaska, which is just south of his lease property. On September 10,2020,council approved a new lease(2020-075)with 4JBC,LLC for Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Raibow Replat, Plat No. 2015-14 in the Seward Recording District, Third Judicial District, State of Alaska ("Lease Agreement"). On July 10, 2023, the city received a request from 4JBC, LLC to purchase Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Raibow Replat,Plat No. 2015- 14 in the Seward Recording District, Third Judicial District, State of Alaska 4JBC, LLC request to purchase this property so he can develop the property into warehousing for incoming or outgoing marine related businesses. Seward City Code 7.05.120 (a) states the City shall not sell any real property interest without first making an appraisal of the fair market value of that interest, unless the City Council finds that the public interest will not be served by an appraisal. The city requested an appraisal of Lot 2 Block 4 in 2023,which came in with a value of$65,000.00. Following negotiations, Mr. Marrs agreed (see the signed Purchase and Sale Agreement) to purchase the property for $65,000. Resolution 2023-119 approves the Purchase and Sale Agreement, terminates the Lease Agreement 20-075 between 4JBC, LLC and the City, and authorizes the City Manager to execute the Purchase and Sale Agreement in substantial form and to make corrections and execute related documents as may be necessary to fulfill the intent of the resolution on behalf of the City of Seward. 97 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with(citation listed): Comprehensive Plan: 3.1.1 Attract new business and industry to the greater Seward area 3.2.1 Promote residential and commercial development within the city of Seward and its vicinity in accordance with community values. Strategic Plan: Economic Base: We are a community that promotes. economic diversity, encourages growth ofyear-round businesses, desires environmentally responsible industry, and seeks jobs that promote a higher standard of living. Growth Management and Land Use Planning.- We have an attractive community in which to live, work, be educated and recreate, where growth is orderly and driven by community consensus. Growth and land use planning are coordinated through the collaboration ofprivate and public entities. We promote and facilitate balanced development. Other: Certification of Funds Total amount of funds listed in this legislation: $ 65,000.00 This legislation(✓): ✓ Creates revenue in the amount of: $ 65,000.00 Creates expenditure in amount of. $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted ✓ Not applicable Fund Balance Information Affected Fund(✓):12000-2501-XXXX General ✓ SMIC Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance $ Finance Director Signature: 98 Attorney Review ✓ Yes Attorney - Signature: Not Comments: applicable Administration Recommendation �✓ Adopt AM Other: 99 Sponsored by: Sorensen CITY OF SEWARD,ALASKA RESOLUTION 2023-119 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 IWHT 4JBC,LLC FOR THE SALE OF 18,432 SQUARE FEET OF LOT 2 BLOCK 4, FOURTH OF JULY CREEK SUBDIVISION IN THE SEWARD MARINE INDUSTRIAL CENTER, PLAT NO. 2015-14 IN THE SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA IN THE AMOUNT OF $65,000.00 WHEREAS, 4JBC, LLC (Patrick Marrs) currently owns Lot IA Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 2015-14 in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, on September 10, 2020 council approved a new lease (2020-075) with 4JBC, LLC for Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center (SMIC), Plat No. 2015-14 in the Seward Recording District, Third Judicial District, State of Alaska ("Lease Agreement"); and WHEREAS, on July 10, 2023, the city received a request from 4JBC, LLC to purchase Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 2015- 14 in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, 4JBC, LLC request to purchase this property so he can develop the property into warehousing for incoming or outgoing marine related businesses located at SMIC; and WHEREAS,the City Council of the City of Seward, Alaska,has repeatedly determined that economic development of the City of Seward is in the public interest; and WHEREAS,the need for retail buildings and office space that supports the marine orientated businesses has been lacking at SMIC; and WHEREAS,the City of Seward recognizes the new retail businesses will bring professional services to Seward; and WHEREAS,the City of Seward currently owns property, legally described as: Lot 2 Block 4, Fourth of July Creek Subdivision in the Seward Marine Industrial Center(SMIC), Plat No. 2015- 14 in the Seward Recording District, Third Judicial District, State of Alaska with the Physical Addresses of: 208 Nash Road; ("the Property"); and 100 CITY OF SEWARD,ALASKA RESOLUTION 2023-119 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, the city requested an appraisal of a Lot 2 Block 4, which came in with a appraised value of$65,000.00; and WHEREAS,Mr. Marrs had Seward Properties assess the land and determined the assessed lands actual value at $65,000; and WHEREAS,following negotiations,Mr.Marrs agreed to purchase the property for$65,000; and WHEREAS,this is accepted as fair market value of the Property. 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 4JBC, LLC by sole source negotiation pursuant Seward City Code 7.05.120, with the essential terms and conditions in the attached Purchase and Sale Agreement. Section 2. The attached Purchase and Sale Agreement marked as Exhibit A, is hereby approved and the City Manager is hereby authorized to execute the Purchase and Sale Agreement in substantial form as 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. Pursuant to Section 2 of the attached Purchase and Sale Agreement and Article 32 of the Lease Agreement, the Lease Agreement 20-075 is hereby terminated. Section 4. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of November 2023. 101 CITY OF SEWARD,ALASKA RESOLUTION 2023-119 THE CITY OF SEWARD, ALASKA Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Kris Peck. City Clerk (City Seal) 102 r,; J t.n hn-- To: Norm Regis, Seward Harbormaster Fr: Patrick 4JBC LLC PO Box 1947 Seward, Alaska 99664 Re. 11�nv to v»>rnT. awn �nrnnl `2A I Q AQ9 o" ft mnntnnr. Az y Int In—f-A nt 9AQ -KTAQTJ vstc.r by rcxrc,ucxw�c., is cxi c,cr v ' iv, _"r to t�.c.n[zxx�cc cc�.c -vO rc�uuoc.cc uu Marine .uw i iw-ii ROAD at the Seward Mare Industrial Center (SMIC). This lot is presently leased by myself, Patrick Marrs, and is adjacent and north of my present property at 4JBC LLC (Communications North Lot), 204 Nash Road. I am offering to purchase the property at fair market value. Nicole Lawrence of ., P mm nrnl on." ' f $57,600 based on past Borough assessed values and private appraised values. I have included a concept drawing of the area for development. See attachments. My plans are to develop the property for marine-oriented business operations. As the area develops there is a need for warehousing for incoming/outgoing products. I would consider other tvbes of established companies from lamer cities to locate -satellite dices to support the maritime industry in the service or manufacturing sector. There is no electrical, water or sewerage service to the property and the drainage from rain run-off does occasionally flood the property. When the area drainage is corrected and put in culverts, the ditch could be covered allowing for ease of access by large vehicles. However, the property can be developed as it is if access is available from the uplands. I hope that serious consideration will be given to my offer to purchase the parcel. 103 REAL PROPERTY PURCHASE AND SALE AGREEMENT BETWEEN 4JBC,LLC AND THE CITY OF SEWARD,AK This Exchange Agreement(hereinafter, the "Agreement") is made as of aJeffi�T 3 2023 between the 4JBC, LLC (hereinafter, "4JBC"), 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"). The Parties agree as follows: 1. Purchase and Sale. Subject to the terms and conditions of this Agreement,the City agrees to sell and 4JBC agrees to purchase the real property described as follows along with all improvement located thereon (hereinafter,the"Property"): Lot 2, Block 4, FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, RAIBOW REPLAT, Plat No. 2015-14, records of the Seward Recording District, Third Judicial District, State of Alaska. Also known as 208 Nash Road, Seward AK 99835, Parcel ID: 14534056 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 sixty-five thousand dollars ($65,000.00). 4JBC will pay a deposit of one thousand, three hundred dollars($1,300.00)(hereinafter,the"Earnest Money" or"Deposit")to the Escrow Agent described. with 4JBC'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 S to 4JBC`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. Currently 4JBC has approximately 17 years remaining on a leasehold interest in the Property pursuant to an agreement signed in October 2020("Lease"). 4JBC and the City agree to terminate the Lease as part of this Agreement. No value will be given for the mutual termination of the Lease. 3. Referendum. Under the charter and code of Seller,the resolution approving this Agreement may be subject to a referendum and the sale approval may be voided. Nothing in this Agreement shall affect or reduce the rights of the voters of the City of Seward to reject the City Councils 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 4JBC at the time the petition is accepted. In such event, City and 4JBC Purchase and Sale Agreement 104 Page 1 of 10 4JBC 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, 4JBC 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 4JBC's Earnest Money and prompt reimbursement by the City of all of 4JBC's reasonable, third-party costs actually incurred by 4JBC in connection with the subdivision and replat, if a referendum petition is approved. 4JBC 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 4JBC, 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. Pr_o_rations and Adjustments. 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 4JBC on a prorated and adjusted basis for the following: (1) Real property taxes and current installments of special assessments for the current tax year. (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. 4JBC Responsibilities. On the basis that 4JBC is currently leasing the Property and will be on the Closing date, 4JBC shall be responsible to the City on a prorated and adjusted basis for the following: (1) Real property taxes and installments of special assessments for the remainder of the current tax year. C. 4JBC and City Responsibilities. (1) 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 Party City and 4JBC Purchase and Safe-Agreement 105 Page 2 of 10 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. (2) 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. 5. Representations and Warranties. A.Title. The City will deliver to 4JBC, at 4JBC'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 G of this Agreement, together with copies of all underlying exceptions described in the Preliminary Commitment, The Property is to be sold and conveyed subj ect 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 4JBC. 4JBC 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 4JBC objects. If 4JBC objects to any such matters, the City shall have fifteen (15) days after receiving written notice from 4JBC to attempt to eliminate the matters to which 4JBC has objected or to cause Escrow Agent to insure over said matters. The City shall notify 4JBC 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. 4JBC 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, 4JBC 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 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 4JBC does not object under the immediately preceding paragraph, plus all items described in this paragraph, are referred to herein as "Permitted Exceptions." B. Damatye or Destruction. City and 4JBC Purchase and Sale Agreement 106 Page 3 of 10 The Parties agree that, in the event that the Property is 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. The Parties 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. 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 Disposition. 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 Addendurn. 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 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 the Termination of this Agreement and the Parties have not exercised options (1) or (2) at which point the escrow funds will be released back to the Buyer. 6. Terms and Conditions. A. Inspection. 4JBC is currently leasing the Property and has knowledge of the condition of the property based on occupancy and past use under the Lease. 4JBC, its agents and contractors, may conduct such tests and inspections of the Property as 4JBC deems appropriate; provided, however, 4JBC shall give the City reasonable notice of 4JBC's intention to conduct such tests and inspections of the Property. If 4JBC reasonably determines from the inspections or testing that any condition of the Property does not meet 4JBC's satisfaction, and that condition does not stem from its own negligence or use of the Property under the Parties' Lease, 4JBC shall have the right within sixty (60)days after the effective date of this Agreement to object to such matter by delivering written Cit)�and 4JBC Purchase and Sale Agreement 107 Page 4 of 10 notice to the City specifying the matters to which 4JBC 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 4JBC's satisfaction or negotiate an acceptable resolution with 4JBC. Unless 4JBC has agreed to proceed as a result of the City's cure or other agreed-upon resolution, 4JBC 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 4JBC pursuant to this paragraph, the Deposit shall be returned to 4JBC 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 4JBC buys the Property hereunder"as is" and"where is." The City shall have no liability or responsibility to 4JBC 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 4JBC. 4JBC 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. 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 4JBC by a quitclaim 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 4JBC. 7. Closing. A. Closing Costs. All Closing costs of the transaction, unless otherwise provided in this Agreement, shall be divided as follows; City and 4JBC,Purchme and Side Agreement 108 Page 5 of 10 Seller shall pay the following Closing costs: a. Any outstanding or pending assessments or liens b. Seller's attorney fees and costs c. Real Property taxes will be prorated to date of closing and if applicable, paid through escrow Purchaser shall pay the following Closing costs: a. All recording fees b. All document preparation fees c. All escrow closing fees d. Owner's standard coverage title insurance described herein (Required) e. Any ALTA title insurance policies desired by Purchaser (Optional) f All Purchaser's attorney fees and costs g. All appraisals, commitment fees, points, and financing costs h. Real Property taxes will be prorated to date of closing and, if applicable, paid through escrow i. All costs not otherwise specified but related to this transaction and not otherwise agreed to be paid by the Seller 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. B. Qq 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 43BC of 4JBC's inspection of the Property not revealing any basis upon which 4JBC timely terminates this Agreement as provided in Section 6. (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 success, challenges or controverts 4JBC's action to acquire the Property. (4) 4JBC to pay all amounts required by this Agreement. C. Closing Date Closing shall occur within 60 days from Council approval of the Agreement unless a referendum application has been filed in which case the time for Closing will be extended until 30 days after certification of the Referendum election. City and 4JBC Purchase and Sale Agreement 109 Page 6 of 10 S. Miscellaneous. A. Remedies. (1) If 4JBC (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 $1,300.00 deposited by 4JBC with the Escrow Agent pursuant to Section 2 above, and such retention by the City of this Deposit shall be the sole and exclusive remedy available to the City for such failure or default by 4JBC; 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 4JBC. The City's return of the$1,300,00 Deposit to 4JBC, shall be the sole and exclusive remedy available to 4JBC 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. C. Waiver. No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by the City or 4JBC 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. D. Assignment. 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. E. 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. F. 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: City and 4JBC Purchase and Sale Agreement 110 Page 7 of 10 Seller: City of Seward Attn: City Manager P.O. Box 167 Seward,Alaska 99664 4JBC: Patrick Marrs PO BOX 1947, SEWARD, AK 99664 or to such other addresses as either party may from time to time designate in writing and deliver in a like manner to the other party. 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. G. Entire Amement. 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. H. 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. L Surviving Covenants. The provisions of this Agreement shall survive the delivery of the Deed. J. Time is of the Essence. Time is of the essence of this Agreement, K. Exclusive Agreement. 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 4JBC has not delivered notice that it will not close due to an unsatisfied condition. L. 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, M. Further Assurances. Whenever requested to do so by the other party,the City or 4JBC 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 City and 4IBC Purchase and Sale Agreement 1 1 1 Page 8 of 10 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. N. 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 4JBC, 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. O. Possession. 4JBC shall receive possession of the Property at the closing and recording of the quitclaim deed_ The leasehold agreement between 4JBC and the City for the Premises as referenced in Section 2 shall terminate upon closing. The execution of this Agreement constitutes proper notice to both parties to vacate the Leased Premises under the terms of Lease and related lease agreement upon termination. Executed this day of 2023 City and 4JBC Purchase and Sale Agreement 112 Page 9 of 10 Buyer: 4JBC,LLC Patrick Marrs Manager, Member State of Alaska ) Judicial District ) City of '5e'Lj'4'z0 ) The foregoing instrument was acknowledged before me this 3 of &4 rbr i-22023 by Patrick Marrs,Manager, on behalf of the 4JBC, ���\\11111111tII1lIUI/I (Seal) " " �! Notary Signature -- My Commission Expires: NOTARY I PUBLIC Serer: O �` 1i1 ` CITY OF SEWARD Kat Sorenson, City Manager State of Alaska ) Judicial District ) Municipality of ) The foregoing instrument was acknowledged before me this this of ,2023 by Kat Sorenson,City Manager Seward, Alaska, on behalf of the City of Seward. (Seal) Notary Signature My Commission Expires: City and VBC Purchase and Sale Agreement 113 Page 10 of 10 �f F iI V i Sponsored by: Mesaaros Public IIcaring: September 14, 2020 CITY OF SEWARD, ALASKA RESOLUTION 2020-075 f A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ;3 ALASKA, AUTHOR["GIN(: THE CITY 11IANA£'ER TO ENTER INTO A NEW LEASE WITH 4.I13C, LLC FOR LOT 2 BLOCK 4, FOURTH OF DULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BORO[:CII, PLAT NO. 2015-14 :SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is the owner of real property described as Lot 2 Block 4 Fourth of July Creek Subdivision; and i y WHEREAS,4JBC currently owns Lot I Block 4 adjacent to Lot 2 Block 4; and WHEREAS, 4JBC needs to lease additional land at the SMIC to expand his business;. f and. WHEREAS, 4JBC, LLC submitted a proposal to lease Lot 2 Block 4 Fourth of July Subdivision for a boat storage/repair yard and an industrial marine facility; and 1 WHEREAS, the City Manager has negotiated a lease agreement to lease Lot 2 Block 4 to 4JBC, LLC under the provisions of Seward City Code 7.05.410; and 's WHEREAS, the lease request is consistent with the Comprehensivc Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE u CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to execute a new lease with 4JBC, << LLC in substantially the form as presented at this meeting. Section 2. The Seward City Council has determined that the essential terms and u conditions and the method disposition of the proposed lease with 4JBC, LLC for the real property described as Lot 2, Block 4, Fourth of July Subdivision, at 208 Nash Road located in the City of Seward, is in the public's best interest. Section 3. The lease shall be effective from October 14, 2020 until October 14, 2040, with the possibility of two additional five(5) year extensions. Section 4. This resolution shall take effect thirty(30)upon adoption. t 1 114 CITY OF SEWARD,ALASKA RESOLUTION 2020-075 PASSED AND APPROVED by the City Comicil of the City ol' Sew ard, .'Alaska, this 14a`day of September, 2020. T Y )6?'S L iR l?ALASKA ris erry, Ma " Y S: McClure, Baclaan, Osenga, Seese, Terry NOES: None A F3 S E N I': Crites A13STAIN: None ATTEST: Brenda J. , M City Clerk ♦�ystauesr�+ (City 5e�, 4 OF $�1+�►'d°.� SEA" "AAJJ r 1J 1_ t[ tt.. y r i •.,G OF ��►rrkreert�� 115 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and 4JBC LLC Effective Date: 116 TABLE OF CONTENTS ARTICLE 1 - LEASED LAND..................................................... 1 1.1 Description of Leased Land.................................................................................... 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title................................................... 1 1.3 Reserved............. 1 1.4 Property Accepted................................................................................................... 1 1.5 Permits 2 1.6 Platting....................................................................................................................2 ARTICLE2 -LEASE TERM......................................................................................................3 2.1 Lease Term..............................................................................................................3 ARTICLE 3 -RENTAL RATE........................................ 3 3.1 Initial Rental Rate........................................•.................................---......................3 3.2 Rental Adjustments...................................•-•-.............-•--•-........................................ 3 3.3 Procedure for Rental Adjustment............................................................................4 3.4 Effect of Late Appraisal by CITY............................................................................4 3.5 Appraisal by LESSEE......................•.................................---...................................4 3.6 Effective Date ofAdjusted Rental Rate................................................................... 5 3.7 Interim Rental Adjustments........................................•-•---.................................---•.. 5 3.8 Late Payment Charge..............................................................................................5 ARTICLE 4 - USE OF LEASED LAND ..................................... 5 4.1 Use of Leased Land.................................................................................................6 4.2 Obligations ofLESSEE...........................................................................................6 4.3 No Preferential Rights to Use Public Facilities......................................................6 4.4 Adequacy of Public Facilities.................................................................................6 4.5 Tariffs and Other Service Fees ............................................................................... 6 4.6 Time for Payment of Utilities and Taxes.................................................................6 4.7 Other Uses...............................................................................................................7 ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS..........................................................7 5.1 Utilities.................................................................................................................... 7 5.2 Third-Party Improvements......................................................................................7 5.3 Easements................................................................................................................8 ARTICLE 6 - CONSTRUCTION BY LESSEE......................................................................... 8 6.1 Improvements on Leased Land.....................................•--....................................... 8 6.2 City Review of Construction ...................................................................................9 ARTICLE 7- RETURN OF LEASED LAND/SITE CONDITIONS.................................... 10 7.1 Return of Leased Land in Original Condition...................................................... 10 ARTICLE 8 -FORCE MAJEURE........................................................................................... 10 ARTICLE 9 -LESSEE'S ACTS OF DEFAULT..................................................................... 10 ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE................................................... 11 ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE........................ 13 11.1 Real Property Improvements .....---•....................................................................... 13 11.2 Personal Property......................................................................................... ARTICLE 12 -ASSIGNMENT OR SUBLEASE .................................................................... 13 12.1 Assignment of Lease or Subleasing....................................................................... 13 i 117 12.2 Assignment of Lease for Security.......................................................................... 13 12.3 Assignment to Affiliate.......................................................................................... 14 ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY............................................ 14 ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY.................................................. 14 ARTICLE15 -INSURANCE .................................................................................................... 14 15.1 Minimum Insurance Requirements....................................................................... 14 15.2 Subrogation Rights Waived................................................................................... 15 ARTICLE 16 - CONDEMNATION.......................................................................................... 16 ARTICLE17-ARBITRATION ............................................................................................... 16 17.1 Arbitration............................................................................................................. 16 ARTICLE 18- MAINTENANCE AND REPAIRS................................................................. 18 18.1 Normal Maintenance............................................................................................. 18 18.2 Safety Issues.......................................................................................................... 18 18.3 Cost of Repairs...................................................................................................... 18 ARTI LE 19 - ENVIRONMENTAL CONCERNS................................................................ 19 19.1 Hazardous Materials.....................................................................................•....... 19 19.2 Permits and Reporting..........................................................................................21 ARTICLE 20 -ESTOPPEL CERTIFICATES........................................................................22 ARTICLE 21 - CONDITIONS AND COVENANTS...............................................................22 ARTICLE 22 -NO WAIVER OF BREACH............................................................................22 ARTICLE 23 - TIME OF THE ESSENCE..............................................................................22 ARTICLE 24 - COMPUTATION OF TIME...........................................................................22 ARTICLE 25 - SUCCESSORS IN INTEREST.......................................................................22 ARTICLE 26 -ENTIRE AGREEMENT..................................................................................22 ARTI LE 27- GOVERNING LAW............................................................•...........................23 ARTIC LE 28 -PARTIAL INVALIDITY.................................................................................23 ARTIC LE 29 -RELATIONSHIP OF PARTIES ....................................................................23 ARTK LE 30 -INTERPRETATION........................................................................................23 ARTICLE31 - CAPTIONS .......................................................................................................23 ARTICLE 32 -AMENDMENT.................................................................................................23 ARTICLE33 -NOTICES..........................................................................................................23 ARTICLE 34 -FIRE PROTECTION.......................................................................................24 ii 118 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 4JBC LLC (the "LESSEE"), an Alaska corporation whose mailing address is P.O. Box 1947, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 2015-14 recorded in the Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 18,432 square feet,more or less; and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below)to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: ARTICLE 1 - LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 2015-14 recorded in the Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 18,432 square feet, more or less. 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 LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Reserved. 1.4 Property Accepted "As-is." LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as-is" and without reliance on any expressed or implied 1 119 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. 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, 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 in Section 1.3. 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. 1.7 Development of Leased Land. LESSEE shall continue to operate a boat storage/repair work and an industrial marine facility through the term of the lease. LESSEE understands that construction and operations of its marine-related business is a major consideration for the CITY's agreement to the lease the Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the Leased Land without the consent of the CITY. 2 120 a) CITY may withhold its consent as to any proposed business or activity which, in CITY's sole discretion, is not desirable or compatible with the CITY's operation of the Seward Marine Industrial Center. b) In accordance with the provisions of Article 12,no assignment or sublease shall be permitted, unless approved in writing by CITY. Any sublease shall be expressly subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY may elect to not approve any proposed assignment or sublease that might result in a business or activity that, in the CITY's sole discretion, is undesirable and/or incompatible with the CITY's Seward Marine Industrial Center. ARTICLE 2 - LEASE TERM Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization in Resolution No. 2020- (the "Resolution"). The Lease Term shall run for approximately 20 years from the Effective Date, ending at midnight on October 14, 2040. LESSEE shall have the right to extend the term of this LEASE for two additional five (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 33 of this LEASE. ARTICLE 3 -RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2021, the annual rental rate for the Leased Land shall be set at $4,240.00. Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual 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, 2025, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased 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. 3 121 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY (including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety(90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental. Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If, for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal 4 122 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. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1, 2021 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 CPT for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion,to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of$2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4- USE OF LEASED LAND 5 123 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for boat storage/repair work and an industrial marine facility. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE may operate a boat repair and boat storage business on the Leased Land. e) Any changes to this site require prior CITY approval,through the City Manager. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy 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 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 6 124 LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space, including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE_ However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or 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 7 125 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 development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 - CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build, and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations, or improvements, shall be borne and paid for by LESSEE. 8 126 b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of-ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest., a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). f) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state, and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building,mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE 9 127 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 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non-abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE 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 nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, pandemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 -LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof,the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 10 128 9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption, or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law, or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-_628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 11 129 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 10.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute 12 130 or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the 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. 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 -ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, 13 131 a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser, or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 -LESSEE'S DUTY TO DEFENDANDEMNIFY LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 -CITY'S DUTY TO 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. ARTICLE 15 -INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance 14 132 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 ONE MILLION DOLLARS ($1,000,000) of Ship Repairers Liability Insurance including"hot work" coverage and pollution liability coverage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers, and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone 15 133 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 16 - 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. ARTICLE 17-ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator 16 134 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 ($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 ($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 ($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 (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage,Alaska. The arbitrator shall be a person who (a)has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, 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 17 135 evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18 -MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall maintain in good operating condition at all times all fire, pollution, and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk, and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare 18 136 of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19 -ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal, or restoration mandated by a federal, state, or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon,kept, or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored, and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. 19 137 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; iii) Any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (1) occur prior to or during the term of this LEASE; and (2) arise, in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants, or any other persons. The provisions of this 20 138 subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste, hazardous waste, extremely hazardous waste. or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material, and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any 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. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state, or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies of all reports between LESSEE and 21 139 any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 - ESTOPPEL CERTIFICATES Either 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, if there 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 21 - CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22 -NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant, or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant, and condition of this LEASE shall continue in frill force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 -TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 - COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a holiday,and then it is also excluded. ARTICLE 25 - SUCCESSORS IN INTEREST Each and all of the terms, covenants, and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 -ENTIRE AGREEMENT 22 140 This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement, or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 27- GOVERNING LAW This LEASE shall be governed by, construed, and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including, without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 28 -PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29 -RELATIONSMP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE, nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30 -INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 - CAPTIONS Captions of the articles, paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 - NOTICES 23 141 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: Patrick Marrs PO Box 1947 Seward, Alaska 99664 Each parry shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34 -FIRE PROTECTION LESSEE shall, at its sole cost, risk, and expense, provide fire detection and 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 LESSEE'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 (5) years. 24 142 sz nollLag-epuazg :Isglly zaumO `s-umW)IOLMd lz 2t'U'BA pia `soJL'zsOw boas am `afft, C[HVAc13S go Alla :1ass3l AID •141joj has uraJaq salnp auk spas pue spurn rra-ll jas aAeil_olwoT4 sat-pd aqj `,40AUgHA, SSaKLIAk I II 143 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2020, by Scott Meszaros, City Manager of the City of Seward, Alaska, on behalf of the City. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this /1X day ofAAAJ&5 2020,by Patrick Marrs who executed the foregoing document. vfill d®��'/�i� Notary Public in and for Alaska •� "" °" �`�r My Commission Expires: :'�� - NO�T-y(ARaY lJB . P LJ V " IlA�tlll 26 144 MACSWAIN ASSOCIATES LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 APPRAISAL REPORT Seward Marine Industrial Center (SMIC) Land: 18,442± SF (0.42± Acre) Lot 2, Block 4, Fourth of July Creek Subdivision SMIC Raibow Replat, Plat 2015-14 Southeast Corner of Mustang Avenue and Nash Road, Seward, Alaska tN .�,6, Mustang Avenue Appraised Land " '" = 18,442±SF(0.42±Acre) Nash Road a' - a � �• �� 1P�v A v. A A . A i,•• k Date of Value: July 27, 2023 File No. 23-3846 Submitted To: Norm Regis, Harbormaster City of Seward 1300 4t" Avenue Seward, AK 99664 145 MacSwain Associates LLC 4401 Business Park Blvd.,Suite 22 Anchorage,Alaska 99503 Phone: 907-561-1965 Fax: 907-561-1955 s.macswainCamacswain.com August 10, 2023 Norm Regis, Harbormaster City of Seward 1300 4th Avenue Seward, AK 99664 Re: City of Seward SMIC Land: 18,442± SF (0.42± Acre) Lot 2, Block 4, Fourth of July Creek Subdivision SMIC Raibow Replat SEC of Mustang Avenue and Nash Road, Seward, Alaska Dear Mr. Regis: We have prepared an Appraisal Report of the above-referenced marine industrial land within the Seward Marine Industrial Center(SMIC). The appraised parcel is on the southeast corner of Mustang Avenue and Nash Road containing 18,442± square feet or 0.42± acre per the plat. The property is currently leased to 4JBC, LLC until October 2040. We disregard this lease and appraise the market value of the fee simple estate. The City of Seward intends to make a selling decision based on the Appraisal Report, with interest reportedly from the subject lessee, who also owns the adjacent property owner to the south. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Based on the data, reasoning, and analysis that follows, the market value of the appraised property, as of July 27, 2023, is estimated as follows. SIXTY-FIVE THOUSAND DOLLARS $65,000 We direct your attention to the Scope of Work, Certificate of Appraisal, and Assumptions and Limiting Conditions for an explanation of restrictions and limitations of this report. We also direct your attention to the hypothetical condition of the appraisal in the addendum of the report. If you have any questions,please contact our office. Respectfully submitted, � I ? r Alex Kleinke Steve MacSwain, MAI State of Alaska Certificate No. 148873 State of Alaska Certificate No. 42 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 146 MacSwain Associates LLC Appraiser Certification The undersigned certifies that to the best of their knowledge and belief: 4 The statements of fact contained in this report are true and correct. 4 The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 4 We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4 We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 4 In February 2020, we completed an appraisal of subject Lot 2, Block 4. This appraisal was part of a citywide appraisal assignment for the City of Seward. We have not performed any services as an appraiser or in any other capacity, regarding the property that is the subject of this report, within the three-year period immediately preceding acceptance of this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 4 The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 4 The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 4 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 4 Alex Kleinke inspected the property on July 27, 2023. Steve MacSwain, MAI is familiar with the property from other appraisal assignments in SMIC. 4 No one provided significant real property appraisal assistance to the persons signing this certification. 4 As of the date of this report, Alex Kleinke and Steve MacSwain, MAI are certified General Real Estate Appraisers in the State of Alaska and have completed the education requirements through June 2025. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 147 MacSwain Associates LLC 4 As of the date of this report, Steve MacSwain, MAI has completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute. 4 As of the date of this report,Alex Kleinke has completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. 4 As of the date of this report, Steve MacSwain, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. 4 As of the date of this report, Alex Kleinke has completed the continuing education program for Practicing Affiliates of the Appraisal Institute. i&t� o 14---- 8110123 Steve MacSwain, MAI Alex Kleinke Date State of Alaska Certificate No. 42 State of Alaska Certificate No. 148873 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 148 MacSwain Associates LLC Table of Contents Title Page Transmittal Letter Appraiser Certification Table of Contents Appraisal Summary 1 Property Photographs 3 Chapter 1: Definition of the Appraisal Problem 5 Chapter 2: Seward Area and Market Summary 9 Chapter 3: Neighborhood Description and Analysis 14 Chapter 4: Site Description and Analysis 16 Chapter 5: Highest and Best Use Analysis 19 Chapter 6: Land Valuation - Sales Comparison Approach 20 Addendum Assumptions and Limiting Conditions Appraiser Qualifications 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 149 MacSwain Associates LLC Appraisal Summary Value Type: Market value Property Type: Marine industrial land Property Rights Appraised: Fee simple estate Location: Southeast corner of Mustang Avenue and Nash Road,within the Seward Marine Industrial Center (SMIC), Seward, Alaska Legal Description: Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center Raibow Replat, Plat No. 2015-14. Tax Parcel No: 145-340-56 Physical Address: 208 Nash Road, Seward, Alaska Property Owner: City of Seward(per KPB) Zoning: I—Industrial Site Description: Rectangular-shaped parcel containing 18,442±square feet or 0.42± acre per plat Topography: Level and near grade with road access and surrounding properties Access/Frontage: 160± feet on Nash Road, 115± feet on Mustang Avenue Utility Service: Public water and telephone per City of Seward utility mapping Soil and Subsurface Based on observations of surrounding development, soils Conditions: appear to be suitable for development Hazardous Substances: None known Wetland Designation: None Flood Hazard Restrictions: Zone D, an area of which flood hazards are not determined, but possible Easements and Restrictions: Per plat: utility easement along all four boundaries, ranging from five feet to ten feet in width Sale/Lease History: Land rent was established at$4,240 per year in July 2020 for the previous land lessee;this rate was then applied to the new lessee in August 2020. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 1 150 MacSwain Associates LLC Highest and Best Use: Marine industrial development Extraordinary Assumptions: None Hypothetical Condition: Property is unencumbered by land lease. Date of Property Inspection: July 27, 2023 Effective Appraisal Date: July 27, 2023 Date of Report: August 10, 2023 Market Value Estimate: $65,000 ($3.50t/SF) 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 2 151 MacSwain Associates LLC Subject Property Photographs Date: July 27, 2023 Taken By: Alex Kleinke WY 19 .J Northwest view of subject lot o South view of subject lot towards adjacent lot 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 3 152 MacSwain Associates LLC Subject Property Photographs Date: July 27, 2023 Taken By: Alex Kleinke h x West view of subject lot looking towards Nash Road and Resurrection Bay South view of Nash Road frontage from Mustang Avenue intersection 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 4 153 MacSwain Associates LLC Chapter 1: Definition of the Appraisal Problem Overview We prepare an Appraisal Report that analyzes a 18,442± square foot (0.42±acre)lot located in the Seward Marine Industrial Center(SMIC). The purpose of the appraisal is to assist the City of Seward with making a selling decision, as the current subject lessee and adjacent property owner to the south has expressed interest in buying the property. The report is intended to comply with the Uniform Standards ofProfessional Appraisal Practice (USPAP). Value Type Market value Client City of Seward Intended Use of Assist client with making selling decision Appraisal Report Intended User of City of Seward, property owner Appraisal Report Property Inspection July 27, 2023 Date Effective Appraisal July 27, 2023 Date Date of Report August 10, 2023 Identification of Real The appraised property is vacant land with a level gravel pad. Land area Estate Appraised is 18,442± square feet or 0.42± acre, which has historically been leased by Raibow Fiberglass and Boat Repair, LLC. Reportedly, the lease is no longer in effect. The Kenai Peninsula Borough identifies the property as Parcel ID 145-340-56 and the physical address as 208 Nash 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 5 154 MacSwain Associates LLC Road, Seward, AK. The land is situated on the southeast corner of Mustang Avenue and Nash Road. Definition of The type of value estimated is market value. Market value is defined as Market Value follows. The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated- b. both parties are well informed or well advised, and acting in what they consider their own best interests; C. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. I We estimate the market value of the fee simple estate, which is defined Property Rights as follows. Appraised Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain,police power, and escheat.2 1 Appraisal of Real Estate,Fifteenth Edition(2020),by the Appraisal Institute,p.49. 2 Appraisal of Real Estate,Fifteenth Edition(2020),by the Appraisal Institute,p. 60. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 6 155 MacSwain Associates LLC Legal Description The appraised property is legally defined as follows: Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Raibow Replat, Plat No. 2015-14. Property Owner Public Records indicate the owner of the appraised property is as follows. City of Seward PO Box 167 Seward, AK 99664-0167 Assessed The property is owned by the City of Seward and exempt from taxation. Value The property's has been assessed for $75,600 for the past four years. This equates to $4.10 per square foot. It is our understanding the KPB assessment is intended to reflect fee simple entitlements. Three Year Sale and There have been no known sales in the past three years. The property Lease History had been leased to Raibow Fiberglass and Boat Repair since 2015. In July 2020, land rent was adjusted to $4,240 per year. This lease is no longer in effect as the lessee has ceased operations in SMIC. Subsequently, in August 2020 a new lease between the City of Seward and 4JBC, LLC commenced at the same rate. We disregard this encumbrance for the purpose of this assignment and value the fee simple estate. Report Type and This Appraisal Report develops the sales comparison approach to Methodology estimate market value. Neither the cost nor the income capitalization approach reflects market behavior for marine industrial land. Qualitative techniques are used to measure differences between the comparable sales and the subject. The appraisal report is a summary of the appraisers' data, analyses, and conclusions with supporting documentation retained on file. Scope of Appraisal Alex Kleinke of MacSwain Associates, LLC inspected the appraised property, performed the data collection and analysis, and drafted the appraisal report. Steve MacSwain, MAI has inspected the property 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 7 156 MacSwain Associates LLC during the course of previous appraisal assignments and is familiar with the neighborhood. In addition, Steve MacSwain, MAI administered the appraisal process, reviewed draft appraisals, and concurred with the opinion of value. Preparation of this report encompassed the following scope of work that concluded with an opinion of market value. 4 Inspected the appraised property on July 27, 2023; 4 Discussed and inspected the property with Norm Regis, Harbormaster with the City of Seward and Jason Bickling, Community Development Director with the City of Seward; 4 Reviewed KPB Assessor Map 145-340; 4 Reviewed Plat Map No. 2015-14; 4 Reviewed City of Seward Zoning Map and zoning codes; 4 Reviewed City of Seward 2030 Comprehensive Plan Update prepared by PDC Engineers, adopted May 30, 2017; 4 Reviewed Seward Industrial Marine Center Uplands Development Study prepared October 2016; 4 Gathered data from the KPB Assessor's office and State of Alaska Recorder's office regarding ownership, assessments, and general property information; 4 Interviewed Seward real estate brokers, agents, and property owners regarding land sales; 4 Interviewed Seward market participants regarding current industrial and commercial land market conditions, trends, and expectations; 4 Gathered and confirmed information on comparable land transactions; 4 Inspected the primary comparable transactions we relied upon in our comparative analysis; and 4 Applied the sales comparison approach to arrive at a market value indication. Exposure Time We have collected and analyzed market and economic data that projects real estate trends and activity for similar land. Discussions with brokers and analysis of similar property sales indicate that a period of approximately nine months prior to our effective date of value is a reasonable exposure period. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 8 157 MacSwain Associates LLC Chapter 2: Seward Area and Market Summary Overview We present a summary analysis of factors that define the socio- economic factors defining the Seward economy and real estate market. The map below depicts Seward location within Southcentral Alaska. Seward is located at the head of Resurrection Bay, on the southeast side of the Kenai Peninsula. It lies 70 air miles south of Anchorage or 126 miles via the Seward Highway. Seward has an ice-free port with year- round access to the Alaska Railroad. Location Map Anchorage tN Anchorage �Tyonek U N I T E D S T A T E S Whittier Nikiski o Salamatof c Kenai oSterling Chugach State Park Sohlotna _Soldotna o Cooper Cohoe Landing Q Cgi j Clam Gulch Kenai National Wildlife Refuge Chenega o ook lnfet Seward Ni Seward s Homer enai Fjords National Park + .S_ oAnchor Dint - Resurrection Bay Kachemak City ma Co ri ht6 Hn2o03r Micro-so-ft`G'oY`Y+andfor its suppliers.All right-.reserved. Population Within city limits, Seward's 2022 population estimate was 2,482, a decline from the 2020 census population. However the current population represents nominal change over the past five years. Over the past ten-year interval, the population has remained fairly stable as well. Community growth areas are principally rural residential neighborhoods to the north outside city boundaries. According to the State of Alaska Division of Community and Regional Affairs (DCRA), a table containing Seward's historic population follows. 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2,482 2,603 2,717 2,545 2,569 2,512 2,663 2,740 2,768 2,487 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 9 158 MacSwain Associates LLC The actual contributory population to the Seward economy is 5,000± residents with the inclusion of rural residential districts located in Lowell Point and Bear Creek. Moreover,the seasonal population swells to nearly 6,000± during the prime summer months. Seward Employment Seward employment is gradually shifting from trades and fishing to leisure, hospitality, and government. Although Seward employment is projected to increase, we anticipate unemployment to remain above the statewide rate due to the seasonal character of the economy. Because of high demand for seasonal employment,part of the work force resides outside of the Seward residential sphere. Seward Area Map ti /r b 1 and _ /0 Small Boat Seward Harbor Townsite 73, w�ttM1V 0.Nl.4VL I an OF �o rn !Paint tV f-_-r .a t; O ,art Seward Economic Ice-free deep-water port facilities integrated with road and rail service Sectors to interior Alaska drive the Seward economy. The port is home to a commercial fishing fleet, and is the impetus for thriving tourism and recreation. These latter economic sectors have enhanced retail and service industries as well as increased demand for petroleum products. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 10 159 MaCSwain Associates LLC Diversification of the Seward economy has been a central theme of city management, planning, and infrastructure development over the past few decades. Examples of economic diversification include expansion of the Small Boat Harbor, Alaska Vocational and Technical Center (AVTEC), Aurora Energy Services Coal Terminal (not operating), and the Spring Creek Correctional Facility. Furthermore, construction of a breakwater to protect Seward Marine Industrial Center (SMIC) from prevailing weather and seas will improve the economic viability as a market alternative for shipbuilding and repair. Evolving economic diversification is a stabilizing influence and cause to enhance growth opportunities for corollary industries. Despite the seasonal character of the Seward economy, government, natural resources, health care, and transportation sectors contribute year-round employment. A summary analysis of the primary components of the Seward economy follows. Tourism: Tourism has continued to be a strong economic sector of the Seward Economy since the recovery from the national recession. Over the five-year period from 2014 to 2018, the City of Seward reported a 17%increase in sales tax revenue, and a 3 1%increase in hotel/motel tax over the same period, with 2019 figures anticipated to grow further. New hotel construction in 2020 has the potential to further increase revenues in future seasons. Cruise ship port calls increased from year to year since 2013 (50 ships) to 2016 (67 ships) to 2019 (87 ships and 95 days with cruise ships in port). Consequently, Seward cruise ship visitation increased by 84 percent over the same period, with 125,000± passengers in 2013 to 230,000± passengers estimated in 2019.3 The 2013 figures represent an average passenger/ship ratio of 2,500 passengers, while 2019 figures indicate 2,640 passengers. The increase is due to not only fuller ships, but also the industry replacing medium- sized cruise ships with larger cruise ships. Conversely, expedition style trips with 100 to 200 passengers are becoming increasingly common. These ships,while lowering the passenger/ship average,offer exclusive, high-cost ecotrips. As this trend continues, passenger volume should continue to increase over the long term,with exception to the substantial decline experienced for 2020 and 2021 due to the COVID-19 Pandemic. According to the Cruise Line Agencies of Alaska Calendar, 76 cruise ship dockings occurred during the Summer 2022 season. PortActivity:As an industrial port, Seward has not reached the potential that was invested in port infrastructure. However, over the past several years, SMIC has benefited from increased demand for lease property. 3 City of Seward,Comprehensive Annual Financial Reporting. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 11 160 MacSwain Associates LLC Companies that commenced leases in SMIC in 2013 and 2014 include Raibow Fiberglass and Boat Repair and Vigor Alaska. Raibow continued to expand their lease footprint, entering into new leases in 2016 and 2019, but is now out of business and not operating in SMIC. JAG Alaska, Inc. became the new operator at the Seward shipyard after Vigor announced its withdrawal. Additional new lessees in SMIC include SEWMAR, LLC, Hamilton Construction, and Duchess Logistics. Established marine industrial uses that enhance economic productivity include bulk fuel storage, ship repair and dry-dock, and fish processing. In January 2023, the City of Seward accepted an offer from The US Coast Guard for a 1.576-acre parcel to support their 154-foot Fast Response Cutter. The land purchase also involves a transfer of the USCG's leasehold interest on X-Float Road. Additionally, SMIC recently completed a new $27M± rubble mound breakwater, intended to improve protection and enable moorage of larger ships, with a new dock rounding out recent SMIC construction. Construction: A summary of construction projects that had a measurable effect on the Seward economy include: $30 million Seward Long-Term Care Facility (LTCF) in 2010 16,300± square foot, $7.4 million± Seward Community Library and Museum in 2012 4 $13 million student housing complex for Alaska Vocational Technical Center in 2014 Conversion of the 13,500± square foot former Elks Lodge into a brewery/restaurant in 2013 4 New 80±room hotel on the corner of 4th Avenue and Van Buren Street in 2021 19,000± square foot special-use marine industrial building located north of the Seward Small Boat Harbor in 2020 4 Chugachmiut broke ground on a $20 million health clinic containing 15,475± square feet in June 2023 Real Estate Market We anticipate the Seward real estate market to remain stable over the Summary medium and long-term with upward trending prices for properties in high demand and limited supply. Importantly,the real estate market has a direct link to the health of Seward's economic sectors. For example, increases in tourism and recreation cause greater demand for properties that can accommodate cruise ships. These market dynamics will cause upward price pressure on not just tourism-related properties, but surrounding neighborhoods as well. We weighed these market 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 12 161 MacSwain Associates LLC conditions in analyzing the appraised property that benefits from a location in SMIC,which has seen a recent surge in activity. A return to normalcy in terms of tourism has been seen over the past two years as Covid concerns have subsided. Offsetting this optimism is rising costs tied to inflation,which could dampen demand. Moreover, an employee shortage has prevented many businesses, primarily restaurants, from operating at full capacity and taking advantage of the return of tourism, as hesitancy to travel has diminished. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 13 162 MacSwain Associates LLC Chapter 3: Neighborhood Summary Overview The subject is within an industrial neighborhood located on the east side of Resurrection Bay in an area often referred to as Fourth of July Creek. The principal marine industrial development in the neighborhood is the Seward Marine Industrial Center (SMIC). The reader is referred to the images and mapping that follow, which assist with the neighborhood description. SMIC Aerial Provided by City of Seward N � ' er t Subject Neighborhood SMIC was developed in the mid-1980s by the City of Seward. Description Excluding the land now owned by the State of Alaska Department of Corrections, SMIC is comprised of 32± parcels covering 92± acres of land. The city's objective has been to market this land as a marine industrial center and then lease it as a means of expanding their economic base. The goal is to offer an alternative location for marine industrial services in Southcentral Alaska that have historically required travel to Southeast Alaska,British Columbia,Washington, and Oregon. A ship syncrolift integrated with a rail transfer system were installed by the city as infrastructure to attract marine industrial development. A travel boatlift was also installed to haul-out and launch vessels from the 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 14 163 MacSwain Associates LLC boat repair yards. Public services are extended to various portions of this neighborhood. Over the past 25 years, SMIC has slowly developed. Presently over 80%of SMIC is either leased or owner-occupied by the City of Seward. The primary lessees are a ship repair facility that utilizes and maintains the syncrolift and a fish processing plant. The ship repair facility is expanding and stimulates demand for complementary marine industrial users. The city rents repair stalls to boat owners In the City boatyard. In the past few years,there have been several smaller users seeking land in SMIC. As discussed,the Coast Guard has reached an agreement with the City of Seward to acquire a portion of land in SMIC as part of a property exchange. In 2018, a 960-foot rubble mound breakwater was completed. The $27M project is expected to improve protection and enable moorage of larger ships. If SMIC basin improvements are improved for safer moorage, then demand for land in SMIC is anticipated to increase. SMIC Breakwater and Entrance Dredging Plan (2014) J RESURRECTON bP7 l m � ryp. I r I I I Summary Essentially, this neighborhood district has laid a solid foundation to capture future marine industrial demand. The long-term outlook is considered to be good due to its infrastructure (roads, utilities, docks, etc.), and access to deep water. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 15 164 MacSwain Associates LLC Chapter 4: Site Description and Analysis Overview Analysis of land describes the characteristics that enhance or detract from its utility or marketability. The site description and analysis is based on our property inspection and review of the plat map, aerial, Borough, and other mapping. The plat map below, as well as aerial mapping on the following pages assist in the description and analysis of the parcel that follows. Plat Map 2015-14 zT Mustang Avenue] I 1�23 27' NeQie'Ga"E fo23. i ��rn ti0 �rni w i A Appraised Lot 115,P i oe ('Co) N8974'09°E 18,442±SF fir-' Oo Nash Roadm r �o o 00 O CN � 58973'35"W � as `'"" I [ue.9•ze:a�"e,czzg J L---- - ----- -- - - N6976'16'F 702 i Site Description Location: Southeast corner of Mustang Avenue and Nash Road,within the Seward Marine Industrial Center (SMIC), Seward, Alaska Shape and Land Rectangular-shaped lot containing 18,442± Area: square feet or 0.42± acre Access: Vehicular access from Mustang Avenue (gravel) along north boundary, and Nash Road(paved) on west boundary Zoning: I—Industrial, established as a district in which the principal use of land is for business, manufacturing, processing, fabricating, repair, assembly, storage, wholesaling and distributing 23-3846—Lot 2, Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 16 165 MacSwain Associates LLC operations, which may create some nuisance and which are not properly associated nor compatible with residential land uses. Frontage and 160± feet on Nash Road, 115± feet on Mustang Exposure: Avenue Easements and Per plat: 5-foot utility easement along south and east Restrictions: boundaries, 10-foot utility easement along west and north boundaries Public Utilities: City of Seward utility mapping indicates public water fronts the lot in Nash Road,while public sewer terminates south of the lot, and electricity is available in the neighborhood but not adjacent to the subj ect. Topography: Level and near grade with access and adjacent properties State of Alaska Mapper Aerial Appraised Land Mustang Avenue 18,442±SF Nash Road j, New Breakwater Vegetation: Cleared of vegetation Soil Conditions: Based on observations of surrounding development, soils appear to be suitable for development 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 17 166 MacSwain Associates LLC Wetland National Wetlands Inventory (NWI) maps west Designation: portion of SMIC as Estuarine and Marine Wetlands, but these wetlands do not encroach onto subject Flood Hazard: Zone D, an area of which flood hazards are not determined,but possible Environmental The existence of any hazardous material or other Conditions: type of environmental contamination,which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. Our value conclusion assumes that the property is free of environmental and hazardous contaminants. Site None Improvements: Site Utility: Due to location, access, and surrounding land use, we consider the subject site suitable for industrial- related development,including marine industrial. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 18 167 MacSwain Associates LLC Chapter 5: Highest and Best Use Analysis Overview The parcel is located within the Seward Marine Industrial Center (SMIC), subject to City of Seward zoning regulations. Zoning is I, Industrial. According to the City of Seward Zoning Code, this designation was: Established as a district in which the principal use of land is for business, manufacturing, processing, fabricating, repair, assembly, storage, wholesaling and distributing operations, which may create some nuisance and which are not properly associated nor compatible with residential land uses. It is intended to provide environmental safeguards for people employed in or visiting the district. Some visual amenity is expected in this district to make it compatible with adjoining residential or business districts. The Industrial District allows for most types of uses that are commonly associated with industrial development, including those with marine industrial uses. The appraised parcel contains 18,442± square feet or 0.42± acre, and has frontage on both Nash Road and Mustang Avenue. The site is level, near access grade, and is cleared of vegetation. Public water and telephone are available, but utility mapping indicates sewer and electricity are not adjacent to the lot. Surrounding development consists of marine industrial development including boat fabrication, storage, repair, and fish processing. The location within SMIC encourages marine industrial development. Determining the specific land use alternative that maximizes productivity is a difficult analytical task. Based on Industrial zoning, and surrounding development, marine industrial development is considered financially feasible and is the highest and best use of the property, as vacant. The most probable user is an owner-user. Highest and Best Use As Vacant Marine Industrial Development 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 19 168 MacSwain Associates LLC Chapter 6: Land Valuation - Sales Comparison Approach Overview The sales comparison approach is a systematic procedure of estimating the subject's market value by comparing it directly to property sales afforded similar physical and economic character. The approach is founded on the principle of substitution, theorizing value is a function of a knowledgeable investor's (buyer) intent to pay no more for a specific property than the cost of acquiring an alternative property offering similar utility (economic satisfaction). The sales comparison approach is the best approach for valuing vacant land. Comparative Market Limited sale activity exists in SMIC due to the City of Seward's land Analysis holding/leasing policy. We did find one market-based land transaction in SMIC. Although it has not closed, we consider it credible market data. We then expanded our search to alternative areas in Seward. This criteria produced five additional comparable transactions including three value indicators derived from capitalized lease transactions, and two land sales with mixed-use commercial/industrial character along the Seward Highway. The transactions we relied upon are listed in the table below. Additional details of the comparables are retained on file. Summary of Land Transactions No. Location Zone Sale Sale Size $/SF Date Price (SF) 1 Leirer Subdivision, south/east side of Seward I 2015 - Varies 20,000 - $3.25 - Highway north of Port Avenue 2019 80,000 $3.38 2 Northwest corner of Morris Avenue and Nash 1 1/23 $480,000 68,656 $6.99 Road,just north of Sorrel Road, SMIC 3 West side of Seward Highway between Hemlock AC 8/22 $575,000 250,034 $2.30 Avenue and Dieckgraeff Road 4 Southeast corner of Port Avenue and Fourth HC 10/21 $311,000 22,194 $14.01 Avenue 5 Northwest corner of Seward Highway and Aspen AC 8/21 $663,500 144,184 $4.60 Lane, one mile north of SSBH 6 North of Port Avenue and Freight Dock 1 7/19 $475,000 95,036 $5.00 Southeast corner of Mustang Avenue and I 7123 -- -- 18,442 ---- Nash Road, SMIC(Subject) DoV 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 20 169 MacSwain Associates LLC Elements of The elements of comparison that have the greatest influence on market Comparison behavior and the price paid for similar land in Seward is location and physical character, including clearing/grading, frontage/access, and size. We use a qualitative comparison technique that rates elements of comparison as superior, inferior, or similar. The land sales map that follows locates the comparables within Seward. Comparable Land Sales Map Ff Seward Highway g Y _ ,r -- 1 ,p SUb]ec r r - Land Transaction 1 Land Transaction 1 is Leirer Subdivision, a well-located marine industrial subdivision located just north of the Seward Small Boat Harbor, southeast of the Seward Highway. The owner of the subdivision's parcels utilizes a long-term land leasing policy. Currently, the 30-acre subdivision is fully-leased by 14± tenants. The site sizes range from 20,000±to 80,000±square feet or 0.5±to 2±acres. A portion of the subdivision fronts Port Avenue, a paved primary arterial to the Alaska Railroad Dock. The remaining lots are served by ` gravel streets. All public utilities are available in the vicinity. The lessor indicated lease rates are adjusted every five years based on CPI. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 21 170 MacSwain Associates LLC Excluding outliers, the typical lease rates range from $0.26 to $0.27 per square foot. Based on the prevailing 8%market rate for long-term land leases, these rental rates develop unit value indicators of$3.28 to $3.38 per square foot. An upward adjustment is required to reflect this inferior size differential and marine influence. Land Transaction 2 Land Transaction 2 is the purchase agreement between the United States Coast Guard and the City of Seward for 68,656 square feet of land in SMIC. In January 2023,the City of Seward accepted the Coast Guard's offer of $480,000, equating to $6.99 per square foot. The purchase involves a partial property exchange for the remaining leasehold interest owned by the Coast Guard on a property on X-Float Road. This interest contributed $50,250 towards the purchase price, leaving the balance of $429,750 to be a cash payment. While many details of the transactions II are unresolved, and the sale has not been recorded, we consider the agreement to be representative of an arm's-length, market value transaction. The $480,000 figure represents the value attributed to the SMIC land,which was arrived at with a market value appraisal obtained by the Coast Guard. By comparison, water frontage is an amenity that necessitates a downward adjustment. Conversely, size is inferior requiring an upward adjustment. After consideration of the strategic location of this parcel,the net adjustment is downward,indicating a unit value less than $6.99 per square foot for the subject. Land Transaction 3 Land Transaction 3 is the August 2022 sale of a parcel fronting the Seward �+ Highway on the corner of Dieckgraeff Road,just south of Japanese Creek and Resurrection River. The irregular-shaped parcel consists of two lots, which total 250,034± square feet or 5.74± acres. The property has public ` sd� f electricity and telephone, but lacks water and sewer. Zoning is AC, Auto Commercial. The property had been listed on and off over the years, and 1� r was reoriented as a result of the Seward Levee Project. Prior to the sale, x , a recorded easement vacation removed a bisecting utility easement. Portions of the site are prone to flooding per FEMA. The sale price of $575,000 indicates a unit price of$2.30 per square foot. Most recently, the property was listed for$590,000. The buyer is a national boat storage company with 100± locations. The intent of the purchase is to develop a boat storage facility. The buyer made a $150,000 down payment with the balance financed by the seller at 6%with a two-year call. Containing more than five acres with the east portion prone to flooding, we adjust this comparable upward for inferior physical character. Moreover,it lacks marine influence. However, these adjustments are tempered by highway frontage. After 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 22 171 MacSwain Associates LLC analysis, the net adjustment is upward, indicating a unit value greater than $2.30 per square foot for the subject. Land Transaction 4 Land Transaction 4 is the October 2021 lease of ARRC land located at b;o - the north end of the Seward Small Boat Harbor on the southwest corner of Port Avenue and Fourth Avenue. The nearly-trapezoidal shaped site contains 22,194± square feet or 0.51± acre, including a small portion encumbered by public use easements. Access is from paved, two-lane streets and all public utilities are available. Zoning is HC, Harbor Commercial. The property is currently used for restaurant and tourism- oriented uses, benefitting from its proximity to the harbor and railroad depot. The lease rate of$24,880 per year indicates a capitalized value of$311,000 using an 8% rental rate specified in the lease. The lease is subject to five-year renewals based on an appraisal. It indicates a unit indicator of $14.01 per square foot. By comparison, downward adjustments are required, primarily to reflect superior location, zoning and harbor proximity. Thus, a unit value substantially less than $14.01 per square foot is indicated for the subject. Land Transaction 5 Land Sale 5 is the August 2021 sale of a property fronting the Seward Highway on the corner of Aspen Lane. The irregular-shaped parcel " contains 3.31± acres or 144,184± square feet. At the time of the i � purchase agreement, the property was a portion of a larger 11-acre parcel. Thus, the pending sale required a replat prior to closing. The platting process has caused an extraordinarily lengthy sale process The property has public water, sewer, electricity, and telephone. Zoning is AC, Auto Commercial. The property has direct highway access and benefits from 448± feet of frontage. It was previously used as the US Air Force Recreation Center and is primarily cleared. The sale price of $663,500 indicates a unit price of$4.60 per square foot. It is based on the average of two appraisal reports; one completed for the City of Seward (seller), and one completed for Chugachmiut (buyer). The buyer is currently constructing a medical facility on site. Although this transaction did not close until December 2022, the sale agreement occurred in August 2021. By comparison, highway frontage and zoning are positive characteristics mandating downward adjustments. Conversely, size and lack of marine influence are rated inferior. After analysis, the net adjustment is downward, indicating a unit value less than $4.60 per square foot for the subject. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 23 172 MacSwain Associates LLC Land Transaction 6 Land Transaction 6 is the long-term lease commencing July 2019 on ARRC land, north of Port Avenue and the freight dock. The irregular- shaped parcel contains 95,036±square feet or 2.18±acres. The property has access from an unnamed gravel road. The lease rate was determined with the assumption utilities would be extended onto the leased premises by ARRC. At the time of lease, the west portion of the property was level and near grade with surrounding roads,while the east _ portion dropped four feet and required clearing, fill, and grading. The ground lease commenced with an initial lease rate of$38,000 per year. Capitalizing market rent at ARRC's 8%rental rate indicates a fee simple land value of$475,000. On a per square foot basis, this indicates a unit value of $5.00 per square foot. Comparatively, this property has locational advantages afforded by the neighborhood. Conversely, size is rated inferior on a per unit basis. Overall, this comparable indicates a unit value less than $5.00 per square foot for the subject. Reconciliation of Presented below is a rating grid and analysis of the land sales used in Comparative Market comparative analysis. Analysis No. $/SF Rank Net Adjustment 4 $14.01 Superior 2 $6.99 Superior 6 $5.00 Superior 5 $4.60 Superior Subject -- -- -- -- -- -- 1 $3.38 Inferior 3 $2.30 Inferior The comparable land sales indicate a wide value range from $2.30 to $14.01 per square foot. Comparables 1 and 3 are rated inferior indicating a unit value greater than $3.38 per square foot. Conversely, Comparables 2, 4, 5, and 6 are rated superior indicating a unit value less than $4.60 per square foot. After comparative analysis and making the necessary adjustments, we conclude with a unit value approximating $3.50 per square foot. This develops the following indicator. 18,442 SF x $3.50/SF = $64,547 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 24 173 MacSwain Associates LLC Based on the preceding analysis, we conclude with a value estimate of $65,000. Thus, the market value of the appraised land, as of July 27, 2023, is estimated as follows. Market Value Estimate $65,000 (R) 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 25 174 Addendum 175 MacSwain Associates LLC Assumptions and Limiting Conditions This appraisal is subject to the following assumptions and limiting conditions. 4 No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be marketable unless otherwise stated. 4 The property is appraised free and clear of all liens or encumbrances unless otherwise stated. 4 The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 4 All maps, plot plans, and other illustrative material are believed to be accurate, but are included only to help the reader visualize the property. 4 It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 4 It is assumed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 4 It is assumed the property conforms to all applicable zoning,land use regulations, and platting restrictions unless the nonconformity is identified, described, and considered in the appraisal report. 4 Possession of this report, or a copy thereof, does not carry with it the right of publication. 4 The appraisers, by reason of this appraisal, is not required to give consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4 Neither all nor any part of the contents of this report shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. 4 The existence of any hazardous material or other type of environmental contamination,which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. However, the presence of these substances may affect the value of the property. Therefore, the client is urged to retain an environmental assessment for discovery and evaluation. Hypothetical Condition This appraisal is subject to a hypothetical condition that the property is unencumbered by the land lease and developable to its highest and best use. 23-3846—Lot 2,Block 4,Plat No. 2015-14, 18,442E Square Feet in SMIC, Seward,Alaska 176 MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22,Anchorage,Alaska 99503 Appraiser: Alex Kleinke State of Alaska, Certified General Real Estate Appraiser—License #148873 Education: Bachelor of Business Administration,Finance,University of Alaska Anchorage (2009) Master of Business Administration(MBA),University of Alaska Anchorage (2012) Professional Experience: 2009 to Present—MacSwain Associates LLC Real estate appraiser of all property types throughout Alaska including commercial, industrial, land, rights-of-way, and special-purpose properties. Appraisals performed for financing, right-of-way acquisitions, conservation easements,leasing,insurance,taxation,estate planning,investment analysis, and buy-sell decisions. Appraisal Education: The following is a list of recently completed appraisal courses and seminars. 2023— 7-Hour National USPAP 2022-2023 Update Course by the Appraisal Institute, Sandy,UT 2022 UASFLA:Practical Applications by the Appraisal Institute,Freeport,ME 2022 Valuation of Conservation Easements by the Appraisal Institute,Bordentown,NJ 2022—Fundamentals of UASFLA by the Appraisal Institute, Online 2021 — Cool Tools:New Technology for Real Estate Appraisers by the Appraisal Institute, Online 2021 —Analyzing Operating Expenses by the Appraisal Institute, Online 2021 Business Practices and Ethics by the Appraisal Institute, Online 2020— 7-Hour National USPAP 2020-2021 Update Course by the Appraisal Institute,Anchorage,AK 2017 Business Practices and Ethics by the Appraisal Institute, Online 2017— 7-Hour Equivalent USPAP Update Course by the Appraisal Institute, Online 2016—Advanced Market Analysis and Highest and Best Use by the Appraisal Institute, Chicago,IL 2016— General Sales Comparison Approach by the Appraisal Institute, Chicago,IL 2015 Real Estate Finance, Statistics, and Valuation Modeling by the Appraisal Institute, San Diego, CA 2015 General Report Writing and Case Studies by the Appraisal Institute,Las Vegas,NV 2015— General Income Approach Part II by the Appraisal Institute, San Diego,CA 2015— General Income Approach Part I by the Appraisal Institute, San Diego, CA 2013— The Discounted Cash Flow Model: Concepts, Issues, and Apps. by the Appraisal Institute, San Diego,CA 2013— General Appraiser Site Valuation and Cost Approach by the Appraisal Institute,Fort Lauderdale,FL 2012— General Market Analysis and Highest and Best Use by the Appraisal Institute, San Diego, CA 2011 — 15-Hour National USPAP Course by the Appraisal Institute,Anchorage,AK 2010—Basic Appraisal Procedures by the Appraisal Institute,Anchorage,AK 2010 Basic Appraisal Principles by the Appraisal Institute,Anchorage,AK Sample of Significant and Project Assignments: 2022-2023 —USFWS land acquisitions for DOI-AVSO,Fairbanks 2022—Agricultural Land Easement in Palmer for Alaska Farmland Trust,USDA/NRCS, 2021 —Transportation corridor for DOI-AVSO on Native Allotment in Knutson Bay,Iliamna, 2020-21 —Eight right-of-way appraisals for Knik-Goose Bay Road Reconstruction Project 2020—43 City of Seward Lease Parcels including commercial,industrial, and marine-type properties 2020—41 City of Kenai Lease Parcels including aviation,commercial,industrial, and marine-type properties 2019— City of Kodiak Lease Parcels including aviation and communication sites, seaplane base, and shipyard 2018—Fractional interest of land and sandwich leases for Anchorage hotel and fuel station properties 2017—Pacific Spaceport Complex,market rent of launch complex facilities within PSCA on Kodiak Island 2016-2017—Provided insurable value project appraisals for properties in Utgiagvik, Dillingham, Iliamna, Kotzebue, Nome, Cordova,Naknek,Angoon,Haines,Hoonah,Juneau,Kake,Anchorage,Bethel, and Yakutat 2015 —40 City of Seward Lease Parcels including commercial,industrial, and marine-type properties 2015 —97 City of Kenai Lease Parcels including aviation,commercial,industrial, and marine-type properties 2015 —Assisted with cost estimate to acquire lands to develop proposed AKLNG from Pt. Thomson to Nikiski 2014-2020—50+Right-of-way appraisals for Parks Highway MP 48.8 to 52.3 Reconstruction Project 2014—Assisted with project management and appraisals of Nikiski properties for Alaska LNG acquisitions 2012—Assisted in the income analysis portion of the Trans Alaska Pipeline System (TAPS) 2010-2022—Alaska Railroad Corporation (ARRC)land lease appraisals in Anchorage, Seward, and Whittier Professional Affiliation: Practicing Affiliate —Appraisal Institute License#5,18/2023 148873 Efteetive:5(1 State of Alaska 02 Expires:0613 0/2 0 2 5 Department of Commerce,Community,and Economic Development Division of Corporations, Business,and Professional Licensing Board of Certified Real Estate Appraisers Licensee: ALEXANDER H KLEINKE License Type: Certified General Real Estate Appraiser Status: Active Commissioner:Julie Sande MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22,Anchorage,Alaska 99503 Appraiser: Steve MacSwain,MAI Member of Appraisal Institute -No. 5700 State of Alaska, Certified General Real Estate Appraiser-No. 42 Professional Experience: 1986 to Present-MacSwain Associates LLC 1976 to 1986 - Appraisal Company of Alaska-President 1970 to 1975 - Real Estate Services Corporation—Appraiser 1969 to 1970 - State of Alaska Department of Highways -Right of Way Agent Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial, subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance, condemnation,taxation,property damages,investment analysis,and buy-sell decisions. Appraisals include valuation of both real property and business enterprises. Professional experience totals 49 years. Life-long Alaskan resident of Alaskan Native descent. Education: Bachelor of Business Administration,Finance (1969),University of Alaska Fairbanks Appraisal Education: The following is a list of completed appraisal courses and seminars. 2023—Appraiser Law in the Real World by Christensen Law 2023— Uniform Standards of Professional Appraisal Practice— Update by the Appraisal Institute 2022—Business Practices and Ethics by the Appraisal Institute 2022— General Appraiser Site Valuation and Cost Approach by the Appraisal Institute 2021 — Cool Tools:New Technology for Real Estate Appraisers by the Appraisal Institute 2021 Desktop Appraisals (Bifurcated, Hybrid) and Evaluations by the Appraisal Institute 2021 Hot Topics & Myths in Appraiser Liability by LIA Administrators& Insurance Services 2019—How Tenants Create or Destroy Value:Leasehold Valuation and its Impact on Value—by the Appraisal Institute 2017—Appraising Environmentally Contaminated Properties by the Appraisal Institute 2017 Residential& Commercial Valuation of Solar by the Appraisal Institute 2017 Right of Way Acquisition for Pipeline Projects by the International Right of Way Association 2015 Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute 2015—Business Practices and Ethics by the Appraisal Institute 2013 Complex Litigation Appraisal Case Studies by the Appraisal Institute 2013 Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book)by the Appraisal Institute 2012 Appraisal Curriculum Overview by the Appraisal Institute 2010 Reviewing Appraisals in Eminent Domain by the International Right of Way Association 2010— Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute 2009— The Appraiser as an Expert Witness:Preparation and Testimony by the Appraisal Institute 2009 Attacking and Defending an Appraisal in Litigation by Whitmer Education 2008— Uniform Standards of Professional Appraisal Practice by the Appraisal Institute 2007—Eminent Domain Law for Right of Way Professionals by the International Right of Way Association 1969-2007: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale comparison approach, and highest and best use analysis by the Appraisal Institute, Society of Real Estate Appraisers, International Right-of-Way Association, International Association of Assessing Officers, and Marshall Valuation Service Membership and Organizations: Member of Appraisal Institute — No. 5700, International Right of Way Association(IRWA), and Building Owners and Managers Association(BOMA) Public Service: Past Chairman of the State Board of Certified Appraisers Past Member of Board of Equalization,Municipality of Anchorage,National Experience Review Committee of the Appraisal Institute,and Regional Ethics and Counseling Panel of the Appraisal Institute Past President of Alaska Chapter 57 of the Appraisal Institute Significant Assignments: 4 Appraised Pacific Spaceport Complex-Alaska (PSCA) land and facilities for Alaska Aerospace Corporation on Kodiak Island. 4 Appraised proposed LNG Pipeline, a FERC-regulated 860-mile pipeline transporting liquefied natural gas. 4 Appraised the Trans-Alaska Pipeline System, a FERC-regulated 800- pipeline that transports crude oil from Prudhoe Bay to Valdez,for TAPS ownership. 4 Appraised remote lands (65,000± acres) owned by three Native corporations damaged by the Selendang Ayu grounding and subsequent oil spill. 4 Appraised Calais Company,Inc.,a real estate holding company consisting of 39 commercial parcels in Anchorage. 4 Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project involved over 2,000,000 acres of remote land and nearly 2,000 private property owners. 4 Appointed as a representative of a three-member panel that analyzed and valued over 1,000,000 acres and 8,000 parcels for the Mental Health Lands Settlement. Contract assessor for the North Slope Borough,Kodiak Island Borough, City of Nome, and the City of Valdez. Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax appeal with the Municipality of Anchorage that resulted in a$65 million reduction in assessed value. 4 Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the purpose of an exchange between Koniag,Inc. and U.S.Fish and Wildlife Service. 4 Appraised Common Carrier Pipeline rights-of-way leased and operated by BP Transportation Alaska and ConocoPhillips Alaska. 4 Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the City of Adak and the State of Alaska. Expert Witness Experience: Steve MacSwain, MAI is qualified as an expert witness in both the United States Federal Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal courts. In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts,public hearings, and depositions on matters related to real property. Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to serve as an arbitrator in determining just compensation. 1 > ,2&2D22 Ef State of Alaska E8e c9ve:4APRG4 Ev ire 0 613 012 02 5 Department of Commerce,Community,and Economic Development Division of Corporations,Business,and Professional Licensing Board of Certified Real Estate Appraisers Licensee:STEVEN JAMES MACSWAIN License Type:Certified General Real Estate Appraiser Status:Active Commissioner.Julie Sande Relationships Designations No relationships found. No designations found. ewar4CProperl of SALES • RENTALS • MANAGEMENT 5/26/23 To whom it may concern: Pat Marrs is interested in purchasing the lot located at 208 Nash Rd and has requested that I do an initial valuation of the lot for the purpose of putting together a formal offer. In 2019, this lot (Lot 2 Block 4, Parcel 34), was assessed for $69,600 by the Kenai Peninsula Borough. However, it was valued by a professional appraisal company, MacSwain and Associates, at $53,000 that same year. The appraised value, which is considered a much more accurate representation of market value, was 76% of the appraised value at that time. As of 2023, this same lot is now assessed at $75,600 by the Borough. If we use the same calculation as above, it is fair to assume that a ratio of 76% of the assessed value, the actual market value would be about $57,500. Sincerely, Nicole Lawrence Owner/Broker of Seward Properties 907 491 0778 Nicole@SewardProperties.com 181 `-�j v� P �� � t I 74.99 PARKING I ar � CG F � � J ! �o 1P,\ .6 150.i/O ♦� V � I \ Au C1 hk� ♦,/ l,� }� / I fl I y: wl 4.� / m I ' -r a) s"7 Geographic Information Systems Marrs Request to Purchase {'$p'J 144 North Binkley Street,Soldotna,Alaska 99669 r r ., r 0 .CFI,I, I�;£ N AVE , .. . , Legend . � • Mileposts + ' f _1 KPB Boundary 71 Place Names N1ti!tiThr• 6 AVE Towns and Villages ....,. - - * City Highways Major Roads Roads — Town Medium Volume - Town Low/Seasonal,Other Al AAAFFF Proposed Tax Parcels N10PRIF', AVF n... 000/ 1 4 4 R-A I'T" It ,A Ilk 4 s,opprlL S 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 nay c may not be accurate,current,or otherwise reliable. It is not to be used for navigation. 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[,l$'95P M-9�,9Z685 o My s,m)se l�val e —— 2 _ ____— __—________66 ZL01 3.9l,9z6HN-__.___—_______— -—______a__--_ `u c.cfi zzo�3.cs.sz.6ex) J M"sfczeegs � .i 3.00,>Z69ry �ooi) Bl Stl 3 l�6 ,SZ'fZOI 3.60,9L6HN - h N ry n 6°oa6'wl£V 1oV2/1 c.crtzo�3...z6eni � I �oaoaP L— O p Nne 3AV NOS1773r a v� xa a! jig EmY=E&' m�Vo mA91 "a ; 4`oE o e mm mo.aagryo ,oaam� o e Opt _ i w m oQe`,ya;E VyEo.o aP�oo �`„o s V,0000 " • AMP Resolution 2023-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2024 ELECTRIC RATES TARIFF TO INCORPORATE RECOMMENDATIONS FROM THE 2023 RATE STUDY TO SET ELECTRIC RATES AT A LEVEL TO MEET THE UTILITY'S REVENUE REQUIREMENTS OVER THE NEXT THREE YEARS. Documents: • Agenda Statement • Resolution 2023-120 • Attachments: 0 2023 Electric Rate Study Draft o Council Presentation (""Cost of Service's — The Financial Engineering Company (Mike Hubbard) o Letter from The Financial Engineering Company 0 2024 Electric Tariff 185 City Council Agenda Statement Meeting Date: November 13,2023 To: City Council Through: Kat Sorensen,City Manager From: Rob Montgomery, General Manager Electric Utility Subject: Resolution 2023-120: Amending The 2024 Electric Rates Tariff To Incorporate Recommendations From The 2023 Rate Study To Set Electric Rates At A Level To Meet The Utility's Revenue Requirements Over The Next Three Years Background and justification: The successful operation of an electric utility requires the ability to resolve several interrelated,yet conflicting,goals. Central to these goals are rates. Set too high, and the utility risks losing load,or even entire customers,to self-generation. But setting rates too low reduces the financial health of the utility or runs the risk of not being able to keep up with maintenance and potential reliability issues. Low rates can also lead to insufficient revenues for retaining key personnel or filling all staff positions. Seward's electric utility is currently facing several financial challenges. The first is the payment of the $10 million revenue bond that was taken out in 2022 to pay for deferred maintenance related to infrastructure (Nash Road and substations).The utility begins paying the principal payment on the bond in 2024,which is almost$1 million annually. The utility also has unbudgeted infrastructure work to complete in the refurbishment of the Spring Creek Substation and several other capital projects on the books over the next three years,including the replacement of old and deteriorating underground cable serving residential areas such as Stoney Creek, Gateway/Dora Way, Old Mill,Nash Woods, and Questa Woods. These projects are critical to providing these communities with reliable service. Additionally,the utility must also meet forthcoming reliability and cybersecurity standards being set by the state of Alaska;manage expenses related to deferred and ongoing maintenance; cope with the rising costs of materials and supplies and inflation in general; ensure adequate cash flow related to debt service coverage ratios and add necessary resources to adequately operate the utility moving forward. Seward's rate study was conducted by Mike Hubbard of the Financial Engineering Company. Mr. Hubbard is an expert with 44 years of experience in ratemaking. The recommended adjustments in rates are based upon a"cost of service" allocation,meaning the "cost causer"is the"cost payer." City Council conducted a work session on the rate study on September 11, and input was received from the public during the session. Some adjustments to Mr.Hubbard's study (outlined below)were made, where practical,based on Council and public feedback.While these changes lowered the overall target margin,labor costs and the contribution to the Major Repair and Replacement Fund(MRRF),one expense was also added to the study that was not known until after the work session. This was an expense related to shared right-of-way maintenance with Chugach Electric for the line between Cooper Landing and Moose Pass. Below are the updates made to the study following the September 11 work session: 186 1. Decreased the rate study's target margin from $500,000 to $300,000, which aligns with the utility's target margin established in the 2021 rate study. 2. Decreased the rate study's MRRF contribution from $500,000 to $350,000. 3. Decreased the rate study's labor expenses on the proposed organizational chart from $835,000 to $675,000.This reduction was the result of eliminating the Apprentice Operator position and combining the Government/Railbelt Relations Coordinator and the Customer Relation-Communications Coordinator into one job. 4. Increased the rate study $700,000 total ($400,000 in 2024 and $300,000 in 2026) to maintain the transmission line right-of-way between Chugach Electric's Dave's Creek Substation near Cooper Landing to Seward Electric's Lawing Substation near Moose Pass. Seward owns the high-voltage transmission lines and poles within the right-of-way and CEA owns the lower voltage distribution lines attached to the same poles. The 2023 Rate Study recommends an increase in rates of $0.06 across all customer classes beginning January 1, 2024. This adjustment to Seward's rates will result in an overall increase of$36.00/month for residential customers using an average of 600kWh/month. 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(✓): ✓ Creates revenue in the amount of: $ $10,612,704 in 2024 Creates expenditure in amount of. $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted ✓ Not applicable Fund Balance Information Affected Fund(✓): General SMIC ✓ Electric Wastewater Boat Harbor Parking Water Healthcare Motor Pool Other Note:amounts are unaudited 187 Available Fund Balance $ Finance Director Signature: Attorney Review ✓ Yes Attorney - Signature: Not Comments: applicable Administration Recommendation �✓ Adopt Resolution Other: 188 Sponsored by: Sorensen CITY OF SEWARD,ALASKA RESOLUTION 2023-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2024 ELECTRIC RATES TARIFF TO INCORPORATE RECOMMENDATIONS FROM THE 2023 RATE STUDY TO SET ELECTRIC RATES AT A LEVEL TO MEET THE UTILITY'S REVENUE REQUIREMENTS OVER THE NEXT THREE YEARS. WHEREAS,the rate study was conducted by Mike Hubbard of The Financial Engineering Company, an expert with 44 years of experience in electric ratemaking; and WHEREAS, the rate adjustments recommended in the study are based upon a "cost of service" allocation to the various customer classes and are designed to generate the revenues needed to adequately operate the utility; and WHEREAS, increasing customer rates is necessary because of expenses related to deferred and ongoing maintenance, emerging technologies, future reliability and cybersecurity standards, additional resources (staffing and/or consultants)to ensure safe and reliable operations, rising inflation and other factors, including maintaining adequate cash flow; and WHEREAS, public input on the proposed rates was received following a work session with City Council on September 11, and this input was reviewed by The Financial Engineering Company and adjustments to proposed rates were incorporated where practical; and WHEREAS, the rate study recommends an increase of $0.06/kWh increase across all customer classes beginning January 1, 2024; and WHEREAS,this adjustment in rates will result in an overall increase of$36.00/month for residential customers using an average of 600kWh/month; and WHEREAS, this change to the 2024 Electric Tariff will continue to ensure fair and equitable rates for all customers—where the "cost causer" is the "cost payer"—while also safeguarding the financial health of the utility. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. The City Council hereby authorizes amendments to the 2024 Electric Rates Tariff based upon recommendations from The Financial Engineering Company. Section 2. These tariff amendments will increase electric rates across all customer classes by $0.06/kWh beginning January 1, 2024. 189 CITY OF SEWARD,ALASKA RESOLUTION 2023-120 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 13th day of November 2023. THE CITY OF SEWARD,ALASKA Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 190 COST-OF-SERVICE STUDY r SEWARD ELECTRIC SYSTEM DRAFT September 24, 2023 the Financial Engineering Company 191 Draft 9.21.2023 1. Includes clearing costs for transmission line between Daves Creek and Lawing substations ($400,000 in 2024 and $300,000 in 2026) 2. Reduce Margin from $500,000 to $300,000 3. Reduce contribution to MRRF from $500,000 to $350,000 4. New labor cost increases set at $675,000 plus benefits 192 SEWARD ELECTRIC SYSTEM COST-OF-SERVICE AND RATE ANALYSIS STUDY Table of Contents Page I. INTRODUCTION Background................................................................. 1 Terms.......................................................................... 2 II. COST-OF-SERVICE STUDIES TheProcess ................................................................. 6 Functionalization..................................................... 7 Classification........................................................... 7 Allocation ................................................................ 8 III. SES SYSTEM Power Supply Costs ..................................................... 11 Rate Structure............................................................. 11 BaseRates............................................................... 11 Cost of Power Adjustment........................................ 12 IV. BILLING DETERMINANTS AND REVENUE REQUIREMENTS Billing Determinants.................................................... 13 Revenue Requirements................................................. 15 V. REVENUE ADEQUACY AND COST ALLOCATION Adequacy of Existing Rates .......................................... 20 Cost of Service............................................................. 21 Allocation Factors ........................................................ 21 Scenario Descriptions .................................................. 22 Results ........................................................................ 22 VI. CONSIDERATIONS AND OPTIONS Revenue Requirements............................................... 25 Rates and Cost of Service............................................. 26 RateOptions................................................................ 26 Scenario 1 - Utility Retention................................... 26 Scenario 2 - Utility Sale........................................... 27 VII. SUMMARY AND RECOMMENDATIONS Summary..................................................................... 28 Recommendations........................................................ 29 Table of Contents i 193 SEWARD ELECTRIC SYSTEM COST-OF-SERVICE AND RATE ANALYSIS STUDY Table of Contents - Continued Tables and Figures Table 1 Classification of Revenue Requirements............................ 8 2 Current Base Rates.......................................................... 12 3 Historical Number of Customers and Energy Sales............ 13 4 Billing Determinants ........................................................ 15 5 Assumed Capital Expenditures......................................... 17 6 Revenue Requirements..................................................... 19 7 Adequacy of Existing Rates............................................... 20 8 Scenario 1 Allocation Results ........................................... 23 9 Scenario 2 Allocation Results ........................................... 24 10 Rate Options and Bill Impact............................................ 27 Figure 1 Coincident / Non-Coincident Peak.................................... 4 2 Process............................................................................ 10 3 Historical Energy Sales..................................................... 14 Table of Contents 194 SEWARD ELECTRIC SYSTEM COST-OF-SERVICE AND RATE ANALYSIS STUDY Table of Contents - Continued Appendixes A-1 Derivation of Revenues - Existing Rates A-2 Derivation of Revenue Requirements B-1 Allocation of Revenue Requirements (Scenario 1 - Utility Retention) B-2 Allocation of Revenue Requirements (Scenario 2 - Utility Sale) C-1 Classification of Revenue Requirements (Scenario 1 - Utility Retention) C-2 Classification of Revenue Requirements (Scenario 2 - Utility Sale) D-1 Plant in Service D-2 Functionalization/Classification of Plant E Derivation of Peak Table of Contents 195 I. INTRODUCTION BACKGROUND The successful operation of an electric utility (or any type of utility for that matter) requires the resolution of several interrelated, yet conflicting, goals. Central to these goals are rates. Set too high, and the utility risks losing load, or even entire customers, to self-generation. But setting rates too low reduces the financial health of the utility or runs the risk of not being able to keep up with maintenance and potential reliability issues. Low rates can also lead to insufficient revenues for retaining key personnel or filling all staff positions. Setting rates too low for short periods can also lead to long-term problems. Too often, "temporary" reductions in budgets that forego maintenance become the norm. By the time maintenance becomes critical, large rate increases are required to bring the utility back to safe and reliable operations. All of these issues, whether influenced by high rates or low rates, can lead to ratepayer discontent. If this discontent is strong enough, the sale of the utility becomes a strong possibility. Here in Alaska, Chugach Electric's acquisition of Anchorage Municipal Light 8s Power is the most recent example. Other examples exist, however, including Golden Valley Electric Association acquiring the electric utility of Fairbanks Municipal Utilities System, the City of Thorne Bay selling its utility to Alaska Power Company, and the Alaska Village Electric Cooperative acquiring Bethel Utilities and others. Clearly, rate setting is no easy task, and both long- and short-term factors must be taken into account. Thus when setting rates, budgets should be established that consider the various activities required over the next several years. In addition to on-going operations, the budget must consider: • Prudent Maintenance. While it is sometimes easy to forego right-of-way clearings and other similar activities that are not required immediately, foregoing these can lead to increased damage during storm events or playing "catch-up" later on. Sporadic maintenance may also lead to higher costs if the work must be contracted out due to existing staff being busy with other work. • Emerging Technologies. Sufficient working capital is required to implement capital improvements or programs that provide near- and long-term benefits to consumers. • Security. Both cyber security and security for the infrastructure are now of more importance and must be part of any budget. I. Introduction Page 1 196 • Staffing. Adequate staffing levels for safe and reliable operations must be included. With emerging technologies and security becoming more important, historic staffing levels may no longer be adequate. Staff positions that are included in the budget but remain unfilled are a strong indication that budgeted salary levels are inadequate to attract qualified personnel. • Debt Covenants. Lenders to municipal utilities such as Seward require minimum cash flows be maintained through specified debt service coverage ("DSC") ratios. Even if there is no debt, minimal cash flows might restrict access to future debt. • Impact on Ratepayers. All the above must be balanced with impacts on ratepayers. But simply setting the budget and then charging the same rate to all customers can be discriminatory to some. Even if rates differ among the various rate classes, modifying rates by the same amount can also be discriminatory. Consider for example, a utility that has numerous small customers and one large, industrial customer that operates for only a short period of time each year. Assume further that the industrial customer's load is large enough to require the utility to install large equipment to deliver power to that customer's facility. A single rate for all customer classes may result in other rate classes paying for the additional infrastructure since the industrial customer operates for only limited times. Accordingly, a cost-of-service analysis is an integral part of any rate study where revenue requirements are allocated to each rate class and rates then set that will recover the required revenues. This process, described later in this report, results in rates that fair and equitable such that the "cost causer" is the "cost payer." The last rate study performed by the Seward Electric System ("SES") was completed in 2021. Since then, costs have significantly increased for a number of items, deferred maintenance has been performed, and several large capital additions have been made. Staff now believe that rates are inadequate to fund on-going operations, and a rate review is now required. The Financial Engineering Company was retained to perform this review, and this report summarizes the analysis and findings. TERMS Certain terms are used in this report that may not be familiar to those not closely associated with the power industry. These terms are described below. I. Introduction Page 2 197 Enerqu The total amount of power consumed over a given period. For example, a 100-watt light bulb, if left on continuously, uses 2,400 watt-hours of energy during a 24-hour period. During the entire year (8,760 hours), 876,000 watt-hours of energy are consumed. Units: The unit of measurement is typically kilowatt-hours (kWh) or megawatt-hours (MWh). 1 MWh = 1,000 kWh = 1,000,000 watt-hours Demand, or Peak Demand The maximum rate of consumption of power. Usually, this is measured over a 15-minute period, but instantaneous demands are also used. If in the previous example a second light is turned on for 15 minutes, then the peak demand is 200 watts. Units: The unit of measurement is typically kilowatts (kW) or megawatts (MW). 1 MW = 1,000 kW = 1,000,000 watts System Peak The combined peak demand of all utility customers placed on the utility. Units: kW, MW Coincident Peak ("CP") The usage of power of a particular rate group at the time of system peak. Units: kW, MW Non-Coincident Peak ("NCP") The peak demand of a particular rate group. The non-coincident peak of a rate group does not necessarily happen at the time of the system peak. If the rate group's non-coincident peak occurs at the time of its coincident peak, then the two are equal, otherwise (as is usually the case) the non-coincident peak is greater than the coincident peak. Units: kW, MW I. Introduction Page 3 198 Coincident peak and non-coincident peak are illustrated in the following figure. Figure 1 SES COST OF SERVICE STUDY Coincident/Non-Coincident Peak -Total5yste:~r LoEc Load of 5"ng le Rate I- as_ is O J a Class CP 2 Cl ass N CP .........................................................................................................................:.......... ............................................................................................................................................... Billing Determinants The amount of energy sales, demand sales, and number of customers for each rate group during a year. Units: kWh, kW-months, customer-months Base Rates Rates that are set by the utility to recover the annual revenue requirements that are not associated with fuel or purchased power costs. Base rates include a customer charge, energy charge, and demand charge and are set through action by a governing body. Base rates are in effect for periods of one or more years; whereas fuel and purchased power costs are typically recovered through a separate charge that changes on a monthly or quarterly basis. I. Introduction Page 4 199 Cost of Power Adjustment ("COPA") A rate that recovers the cost of generating fuel and purchased power. SES purchases all of its power requirements from Chugach, who charges a base rate and its own COPA. SES passes these charges on to its customers at cost via the SES COPA. I. Introduction Page 5 200 II. COST-OF-SERVICE STUDIES THE PROCESS Before one can understand the process of how a cost-of-service study is performed, one must first understand the infrastructure of a utility and what are the influencing factors in developing this infrastructure. To procure and deliver power to a customer, the utility must: • Construct a generation system or procure power from some source. • Construct a transmission system to deliver the power from the generating site to the distribution system. • Construct a distribution system complete with poles, transformers, and meters to deliver the power to the end user. • Hire staff to operate and maintain the system and to perform administrative duties such as meter reading, preparing and sending out bills, and other activities. Thus, the utility's functions can be categorized as those being related to Generation/Production, Transmission, Distribution, Customer Accounts, and Administrative. But what factors influence each of these functions? The Generation system must be sized to meet total system peak (or, Coincident Peak) along with adequate reserves. The Transmission system must also be sized to meet the Coincident Peak as power is delivered from remote areas to the system. The Distribution system is, however, a bit more complex. Poles, wires, meters, and transformers are, to a large extent, a function of how many customers there are. But the size of wires and transformers are also a function of how large a customer is since a customer with a larger load requires larger equipment to carry the load. Thus, the Distribution system is sized to meet both the number of customers and size of load. Since the distribution system is not sized to meet the total system load but rather the load in the immediate area, the Non-Coincident Peak is used. Customer accounts, which includes meter reading, billing, and other related activities, are influenced by the number of customers regardless of the size of the customers' loads. Recognizing these influencing factors, the National Association of Regulatory Utility Commissioners ("NARUC") has developed and published a process for II. The Process Page 6 201 allocating utility costs to the utility's rate classes so that a utility's rates are not arbitrary or capricious toward any one or more rate classes. All Alaskan electric utilities that are rate regulated by the Regulatory Commission of Alaska ("RCA") must use the process set forth in the NARUC Manual when adjusting base rates. Although SES' rates are not regulated by the RCA, the methodologies set forth in the NARUC Manual are used herein. In very general terms, the analysis is performed in a multi-step process. These steps are: 1. Projecting the amount of customer months, energy sales, and demand sales. 2. Projecting the utility's revenue requirements. 3. Functionalizing the revenue requirements into those being related to generation, transmission, distribution, and other functions. 4. Classifying the functionalized revenue requirements into those being related to energy, demand (coincident and non-coincident), customer, or direct. 5. Allocating the classified revenue requirements to each rate class based on the contribution of each class to that classifier. 6. Designing rates that will recover each rate class' allocated cost of service. The first two steps are described later in this report, whereas the next three (Functionalization, Classification, and Allocation) are described in general terms below. FUNCTIONALIZATION A utility's production, transmission, distribution and consumer accounts expenses are functionalized through the Uniform System of Accounts. Administrative and General expenses, interest expenses, and other items are functionalized as either production, transmission, distribution, or consumer accounts using the labor components of expenses already functionalized, functionalized plant in service, and other factors. CLASSIFICATION Once the revenue requirements are functionalized, they are then classified as either demand-, energy-, or customer-related. At the risk of over-simplification, the NARUC Manual prescribes the functionalized revenue requirements to be classified as shown in Table 1. As one can see, the classification mirrors the influencing factors described on the preceding page for each function. Detailed classification methodologies for the various line-item expense codes are provided in the NARUC Manual with the goal of classifying in a fair and equitable manner. The II. The Process Page 7 202 NARUC Manual is published for the use of all utilities nationwide and acknowledges that certain deviations from the methods prescribed may be warranted due to local conditions. Table 1 SES COST OF SERVICE STUDY Classification of Revenue Requirements Functionalized Classification Revenue Demand Requirement Coincident Non Energy Customer Coincident Production x x Transmission x Distribution x x ALLOCATION The final step in the cost-of-service analysis is to allocate the classified revenue requirements to each customer class (or rate group) based on each class' respective use of the allocation. For example, energy is typically allocated based on sales. If a particular class accounted for 30 percent of the sales, then 30 percent of the costs classified as energy-related would be allocated to that class. Energy- and customer-related expenses are fairly straightforward, but demand allocations become much more complex since there are a number of different methods that can be used. Some form of the coincident and non-coincident peaks are typically used, with such forms including the annual peak, average of the four peak months, average of the twelve months over the year, average of the three summer and three winter peak months, and so on. Further complicating the matter is that a great deal of load research must be conducted in order to estimate these class peaks with any precision. Such research can be expensive, and the benefits of obtaining the data can quickly be eroded by the associated costs. Load research of comparable utilities and an analysis of billing demands can be used in lieu of the expensive load research. After the revenue requirements have been allocated to each class, the existing rates are applied to the billing determinants (number of customers, energy sales, demand sales) to determine if the rates recover less than or more than the allocated cost of service. Rates are then adjusted accordingly. It is important to understand that there are inherent inaccuracies in the process, and it is not an exact science. The goal is to set rates such that they 11. The Process Page 8 203 are reasonably close to the allocated cost of service, thereby allowing other factors to be considered. Such factors might include foregoing large rate shocks to a particular class, economic development, and others. IL The Process Page 9 204 % { % / C . _ ---� 2 ) , ( E m / Q ( \ \ g E . c § 2 % 2 ) \ (U ---� ■ a § � v : \ \_ A ) 2 \ � § CL \ E E 0 . t + \ } \ . � \ U 3 ) / z q 3 k J & _ (U b . & \ n n $ _ \ \ / C § f - m .| { .§ { - : ,: 2 \; \ k \ / / 41 CL C t / / ] o � _ Q W b % . 2 m ( j \ / 0 .� t § E \ ) / J ID r % .§ % �- / / � g \ / E § E z � / ] 41 E ) / ! : 0 E ) / 7 + u f ) | » ---, ; 2 \ W [ \ � I The Process Page to 205 III. SES SYSTEM POWER SUPPLY COSTS SES receives all of its power supply from Chugach, although back-up generation is maintained in the event of service disruptions. The monthly CEA bill for power consists of a small customer charge, an energy charge, a demand charge, and the fuel and purchased power adjustment ("FPPA"). The first three rates are modified through a general rate proceeding with the RCA, whereas the FPPA is adjusted quarterly based on CEA's fuel costs and generating efficiencies. CEA reduces the overall bill by a fixed amount each month in recognition of SES' share of the Bradley Lake Hydroelectric Project. Chugach rates are regulated by the Regulatory Commission of Alaska ("RCA"), and the utility has recently filed for a rate increase. Presentations by Chugach indicate that the base rates (non FPPA) charged to SES will increase by approximately 16.5 percent. When the FPPA is included and assuming it does not change, the cost of power from Chugach is projected to increase by approximately 6.5 percent. The overall process with the RCA takes approximately a full year from the time of filing. RATE STRUCTURE SES has five primary rate groups and two additional sets of rates for Yard Lights and Street Lights. Rates charged to each rate class are comprised of two major components - Base Rates and COPA. Base rates are, in turn, further subdivided into three sub-components, and each is described as follows. 1. Base Rates. Implemented to recover costs of the system that are not related to fuel or purchased power. Base Rates do not fluctuate during the year and are changed only through Council action. a. Customer Charge. A fixed dollar amount the customer must pay each month regardless of how much energy is used. These rates are implemented to recover some of the fixed, customer-related costs of the utility such as carrying charges and depreciation of transformers, meters, service connections, and part of the distribution system as well as expenses related to meter reading, billing, and customer service. b. Demand Charge. A charge based on peak usage (in kilowatts, or kW) during the month. These charges are used to collect part of the demand-related costs of the system such as those associated with production, transmission, and part of the distribution III. SES System Page 11 206 plant. The demand charge is applied only to Large General Service and Industrial customers. c. Energu Charge. Used to recover the remaining revenue requirements and charged based on energy usage by the customer. 2. Cost of Power Adjustment. The COPA is implemented to recover all purchased power costs. It is assessed on all energy used by a customer. Rates in effect are summarized in Table 2. Table 2 SES COST OF SERVICE STUDY Current Base Rates Small General Large General Residential Boat Harbor Industrial Service Service Customer($/month) 22.10 42.22 42.22 44.23 100.00 Energy($/kWh) Summer 0.1217 0.1269 Winter 0.0851 0.0927 Annual 0.1103 0.0437 All Energy First 200 kWh/kW 0.0761 Additional 0.0264 Demand($/kW-mo) 26.93 30.00 III. SES System Page 12 207 IV. BILLING DETERMINANTS AND REVENUE REQUIREMENTS BILLING DETERMINANTS The number of customers and energy sales for the 2012 - 2022 time period are shown in Table 3, and energy sales are summarized in Figure 3. In 2021, SES established an Industrial rate class that included three customers, one being the Alaska SeaLife Center which was at the time being served under a Special Contract. Billing data is available for each of these customers from 2020 and is separated in the table. Prior to then, the three customers are combined with the Large General Service rate class. As can be seen, total energy sales have increased from the pandemic years but are still lower than ten years ago. Billing determinants incurred during 2022 are used for this study, and these are summarized in Table 4. Table 3 SES COST OF SERVICE STUDY Historical Customers and Sales by Rate Class 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Customers(Average Annual) Residential 2,058 2,067 2,084 2,100 2,114 2,000 2,023 2,045 2,059 2,068 2,086 Small General Service 500 503 508 514 530 480 506 530 543 558 574 Harbor 22 22 22 22 27 27 28 27 27 27 28 Lg Gen Svc/Sp Contract 95 97 96 97 100 93 92 84 92 89 82 Total 2,675 2,689 2,710 2,734 2,771 2,599 2,650 2,686 2,721 2,742 2,769 Percentage Increase(Decrease) 0.5% 0.8% 0.9% 1.4% -6_2% 1.9% 1.4% 13% 0.8% 1-0% Energy Sales(000 kWh) Residential 16,488 15,611 15,265 14,924 14,888 15,441 14,882 15,107 15,925 16,328 15,712 Small General Service 8,652 8,392 7,965 7,809 7,422 7,493 7,560 7,778 7,579 8,328 8,709 Harbor 1,443 1,625 1,455 1,717 1,908 1,709 1,758 1,435 1,612 1,720 1,868 Lg Gen Svc/Sp Contract LGS 17,614 18,189 19,193 Industrial/Sp Contract 9,473 9,865 9,361 Subtotal 32,059 32,229 30,408 30,303 28,733 28,539 27,517 27,284 27,007 28,054 28,554 Street Lights 96 94 98 90 71 67 67 68 66 66 68 Total 58,738 57,950 55,190 54,843 53,103 53,249 51,784 51,673 52,268 54,495 54,911 Percentage Increase(Decrease) -1.3% -4.8% -0.6% -3.2% 0.3% -2.8% -0.2% 1.2% 4.3% 0.8% IV. Billing Determinants / Revenue Requirements Page 13 208 Figure 3 SES COST OF SERVICE STUDY Historical Energy Sales (millions of kWh) 70 60 50 40 30 20 10 2012 2013 2014 2015 2016 2017 2018 2019 2C20 2021 2022 ■Residemial ■Small General Service : HaHbor large General Service/Special Contract ■Street lights IV. Billing Determinants / Revenue Requirements Page 14 209 Table 4 SES COST OF SERVICE STUDY Billing Determinants Average Number Energy Sales Average Billing of Customers (MWh) Usage ❑emand (kWh/cust-mo) (kW-months) Residential Summer 2,091 7,164 571 Winter 2,081 8,548 685 Total 2,086 15,712 628 Sm Gen Svc/Harbor Summer 583 4,701 1,345 Winter 565 4,008 1,183 Total 574 8,709 1,265 Harbor 28 1,868 5,608 Lg Gen Svc 79 19,193 20,225 53,901 Industrial 3 9,361 260,038 24,128 Street Lights 6 68 940 Total 2,775 54,911 70,790 REVENUE REQUIREMENTS The next step in the process is to establish the amount of revenues that must be collected from rates. Typical rate studies are based on the projection of a single year. However revenue requirements are expected to significantly increase in the next several years due to two primary factors. First, staff believes the utility is understaffed for reliable operations, and existing salaries are inadequate to attract and retain quality personnel. Therefore, current labor expenses are believed to be unrealistic and need to be adjusted upward. Second, several large capital expenditures are being planned, and such additions will increase depreciation expenses. Part of the additions is planned to be funded with debt, and interest expenses will also increase. Accordingly, the 2022/2023 budget is used as the basis for this study but with projections through and including 2026. Most budget line items are increased at the assumed inflation rate of 2.5 percent per year, but many are adjusted using specific assumptions. These assumptions are described as follows, and the projections are summarized in Table 6 at the end of this section and provided in their entirety in Appendix B-1. IV. Billing Determinants / Revenue Requirements Page 15 210 1. Labor. Preliminary estimates by staff for the combined effect of increased staffing and salaries was $835,000 per year. That estimate has since been reduced to $675,000 per year, or 61.6 percent above that budgeted for 2023. All budgeted labor and benefit amounts are increased by this percentage in 2024 and increased with inflation thereafter. 2. Contracted Services - Transmission. The 2022 and 2023 budgeted amounts are $800,000 and $500,000, respectively. This relatively high amount reflects the clearing of right-of-ways and is expected to be completed by the end of this year. The amount assumed for 2024 and thereafter is $200,000 per year plus inflation. 3. Transmission Clearing - Chugach recently informed SES that SES would now be responsible to pay for its share of clearing the transmission right-of-way between the Daves Creek and Lawing substations. Chugach's estimate of the SES share is $400,000 in 2024, and this amount is included in the revenue requirements. Clearing is expected to occur every 2 - 3 years, and an additional $300,000 plus inflation is included in 2026. 4. Wholesale Power Costs. This line item represents wholesale power purchases from Chugach. Since these costs are recovered through SES' COPA, they are eliminated from the revenues requirements. 5. Contractual Services - General Operations. The 2022 budgeted amount is $925,287 but decreases to $325,000 for 2023. On-going amounts are assumed to be $350,000 in 2024 with inflation thereafter. 6. Operating Supplies. The 2022 budget is $262,286 and decreases to $50,000 for the 2023 budget. Projections are based on the lower amount budgeted for 2023. 7. Operating Materials. The 2023 budget is $300,000 with no prior amounts (budgeted or historical). The amount is increased to $450,000 in 2024 with inflation thereafter. 8. General Fund Administrative Fee. The budgeted amount of $1,035,780 for 2023 is held constant thereafter. Conversations with City personnel did not reveal the basis for this number, and it is recommended that the City review how this is charged to its various departments. 9. Payment in Lieu of Taxes ("PILT"). This item was not included in the budget but is still assessed to the utility. Historical amounts have been in the range of $1 million, and this amount is included for 2023 and increased with inflation thereafter. Staff indicates that the assessed amount is to be levied at the rate of 8 percent of all revenues. It is noted that fuel costs are part of the Chugach bill, and the assessment could vary with Chugach's fuel costs. IV. Billing Determinants/ Revenue Requirements Page 16 211 10.Major Repair and Replacement Fund - Historically, SES (and other City departments) have made annual contributions to this fund. However, no contributions have been made over the past several years, but such contributions should be made to lessen the reliance on future debt. Preliminary analyses were based on a $500,000 annual contribution, but due to the impact on rates, the contribution has been reduced to $350,000 per year plus inflation. The amount is added to the revenue requirements for 2024 and thereafter. 11.Depreciation. Depreciation expenses are based on depreciation schedules of existing assets and assumptions regarding future capital additions (explained later). 12.Motor Pool Rent. Assumed to decrease to $100,000 per year and escalated at inflation. 13.Debt Service. Interest payments are based on actual schedules and assumptions regarding future debt. Principal payments on debt are excluded as an expense since the inclusion of depreciation on the assets funded with debt would be a double counting of expense. 14.Capital Expenditures. The assumed future capital expenditures are summarized in the following table. New debt is assumed to be a 20- year note, amortized at 5 percent. Potential capital expenditures for expanding office space required for additional staff are not included at this time. Table 5 SES COST OF SERVICE STUDY Assumed Capital Expenditures Depreciation Placed Funding Project Into Cost Life Source Service Nash Road Project/Substation 30 12/31/23 10,000.000 Debt Spring Creek Sub 30 12/31/24 3,369.769 Debt Stoney Creek Cable 30 12/31/23 250,000 Internal Capital Old Mill93 Cable 30 12/31/24 256,250 Internal Capital Gateivay/Dora Way Cable 30 12/31/24 230,625 Internal Capital Questa Woods Cable 30 12/31/26 139,996 Internal Capital Nash Woods Phase I Cable 30 12/31/25 262,656 Internal Capital SectuityCameras-Ft Raymond 30 12/31/25 220,631 Internal Capital RadiatorHoods-Ft Raymond 30 12/31/24 235,750 Internal Capital On-going2024 20 12/31/24 102,500 Internal Capital On-going2025 20 12/31/25 105,063 Internal Capital On-going2026 20 12/31/26 107,689 Internal Capital IV. Billing Determinants / Revenue Requirements Page 17 212 15.Target Margin. There are certain inherent inaccuracies in the projection of both revenues and revenue requirements. Actual expenses may be higher or lower than projected as might be actual billing determinants (energy sales, billing demands, etc.). It is, therefore, prudent to increase the revenue requirements by some amount to take into account these inaccuracies. This additional amount serves two other purposes as well. First, it provides the capital to fund future additions, thereby reducing debt. Second, it allows rates to remain in effect for a longer period of time as inflation increases operating expenses. Since revenue requirements include contributions for the Major Repair and Replacement Fund, the target margin has been reduced from $500,000 included in earlier drafts to $300,000. This represents approximately 2 percent of operating costs when wholesale power purchases are included. It is important to note that the revenue requirements are relatively fixed in nature. Certain costs may be influenced by the number of customers; but even then, these costs are fixed once the infrastructure is built. It is only billing-related costs that are directly influenced by the number of customers at any one time, and these costs represent a very small amount of the total revenue requirements. Thus, the revenue requirements will not be influenced by the level of energy sales or the number of customers. IV. Billing Determinants/ Revenue Requirements Page 18 213 Table 6 SES COST OF SERVICE STUDY Revenue Requirements 2022 2023 Adjustment 2023 2024 2025 2026 Budget Budget Transmission Ops Labor and Benefits 49,078 78,600 78,600 127,039 130,215 133,471 Other 826,700 512,500 512,500 620,090 225,592 546,420 Subtotal 875,778 591,100 591,100 747,129 355,807 679,891 Distribution O&M Labor and Benefits 69,268 81,745 81,745 132,122 135,425 138,811 Other 33,825 30,000 30,000 32,710 33,528 34,366 Subtotal 103,093 111,745 111,745 164,833 168,954 173,177 Wholesale Power Costs Chugach 2,322,950 2,393,000 (2,393,000) - - - - Chugach Fuel 3,600,000 3,708,000 (3,708,000) Subtotal 5,922,950 6,101,000 (6,101,000) - - - - Work Orders Labor and Benefits 229,684 108,050 108,050 174,639 179,004 183,480 Other (105,025) - - (53,825) (55,171) (56,550) Subtotal 124,659 108,050 108,050 120,913 123,834 126,929 General Operations Labor and Benefits 1,728,560 1,314,716 1,314,716 2,124,943 2,178,066 2,232,518 Gen Fund Admin Fee 1,005,612 1,035,780 1,035,780 1,035,780 1,035,780 1,035,780 PILT - - 1,000,000 1,000,000 1,025,000 1,050,625 1,076,891 Major Repair/Repl Fund - - - - 350,000 358,750 367,719 Depreciation 2,560,132 1,585,000 - 1,550,591 1,839,582 1,934,631 1,714,826 Other 2,115,881 1,688,550 (185,000) 1,503,550 1,714,562 1,755,955 1,798,383 Subtotal 7,410,185 5,624,046 815,000 6,404,637 8,089,866 8,313,807 8,226,117 Administration Labor and Benefits 415,129 354,996 - 354,996 573,771 588,115 602,818 Other 462,665 161,950 161,950 181,363 184,868 188,460 Subtotal 877,794 516,946 516,946 755,134 772,983 791,278 Debt Service Interest Expense 154,450 586,700 586,700 579,700 722,525 702,789 Principal Payments 19,000 200,000 (200,000) - - - - Other 20,903 25,403 23,916 23,916 23,916 23,916 Subtotal 194,353 812,103 (200,000) 610,616 603,616 746,441 726,705 Other Operating Expenses(Revenues) Turn on Fees (21,800) (18,077) (18,077) (19,939) (19,939) (19,939) Equipment Rental (2,125) (5,430) (5,430) (3,778) (3,778) (3,778) Join Pole Use (10,800) (10,212) (10,212) (10,506) (10,506) (10,506) Work Order Revenue (30,000) (30,000) (30,000) (30,000) (30,000) (30,000) Collection of Doubtful Accts (550) (275) (275) (275) Subtotal (65,275) (63,719) (63,719) (64,497) (64,497) (64,497) Non-Operating Expenses(Revenue (49,100) (117,541) (117,541) (104,191) (104,191) (104,191) Target Margin - - 300,000 300,000 300,000 300,000 Revenue Requirements 15,394,437 13,683,730 (5,486,000) 8,461,834 10,612,704 10,613,138 10,855,410 IV. Billing Determinants / Revenue Requirements Page 19 214 V. REVENUE ADEQUACY AND COST ALLOCATION ADEQUACY OF EXISTING RATES By applying the existing rates to the billing determinants previously shown in Table 4, revenues can be projected over the study period. These revenues, shown below in Table 7, are then compared to the projected revenue requirements. As seen in Table 7, rates should be increased immediately by $0.060/kilowatt-hour by the end of this year followed by $0.003 two years hence. Table 7 SES COST OF SERVICE STUDY Adequacy of Existing Rates 2023 2024 2025 2026 Residential Customer Charge $ 553,097 $ 553,097 $ 553,097 $ 553,097 Energy 1,599,325 1,599,325 1,599,325 1,599,325 Subtotal 2,152,422 2,152,422 2,152,422 2,152,422 Small Gen Svc Customer Charge 290,685 290,685 290,685 290,685 Energy 968,151 968,151 968,151 968,151 Subtotal 1,258,836 1,258,836 1,258,836 1,258,836 Harbor Customer Charge 14,059 14,059 14,059 14,059 Energy 205,992 205,992 205,992 205,992 Subtotal 220,052 220,052 220,052 220,052 Large Gen Svc Customer Charge 41,974 41,974 41,974 41,974 Energy 1,042,473 1,042,473 1,042,473 1,042,473 Demiand 1,451,554 1,451,554 1,451,554 1,451,554 Subtotal 2,536,001 2,536,001 2,536,001 2,536,001 Industrial Customer Charge 3,600 3,600 3,600 3,600 Energy 391,501 400,296 409,092 409,092 Demiand 662,570 693,157 723,840 723,840 Subtotal 1,057,671 1,097,053 1,136,532 1,136,532 Lights 77,106 77,106 77,106 77,106 Total $ 7,302,086 $ 7,341,469 $ 7,380,948 $ 7,380,948 Revenue Requirement $ 8,461,834 $ 10,612,704 $ 10,613,138 $ 10,855,410 Surplus (Deficiency) $ (1,159,747) $ (3,271,235) $ (3,232,190) $ (3,474,462) Required Increase ($/kWh) From Existing Rates $ 0.021 $ 0.060 $ 0.059 $ 0.063 From Previous Year $ 0.021 $ 0.038 $ (0.001) $ 0.004 V. Cost Allocation and Results 20 215 To gain an insight into how these rate increases might be lessened, every $500,000 of revenue requirements equates to slightly under $0.01/kilowatt- hour. Steps that the City or SES might implement to lessen the required rate increases are discussed in the next section. COST OF SERVICE While the overall rates must be adjusted, the question then becomes how should the rates within the various rate classes be adjusted? Should they all be adjusted by the same amount, the same percentage, or a different amount for each rate class? The allocated cost of service analysis provides insight into this. But, it must be stressed that cost-of-service studies are not an exact science. Although the NARUC Manual was established to set forth guidelines in classifying the various revenue requirements, the process requires estimates of certain allocators to be made. Furthermore, customers in one rate class are "generally" in different locations than others, but geographical boundaries are typically blurred. Finally, the process is based on a snapshot in time, and usage patterns and relative usage change over time. All in all, the results should not be taken as exact numbers but rather guidance on whether rates are set too high or too low. ALLOCATION FACTORS As described in Section II of this report, demand-related expenses are allocated based on estimates of each class'contribution to the coincident peak and the non-coincident peak. For a large utility, these estimates are developed through detailed load research where the hourly usage of customer sample groups are monitored over at least a year. From this, estimates can then be made for rate classes as a whole. This load research, however, is relatively expensive, and the benefits of gaining the data are quickly eroded for small utilities such as SES. Therefore, other methods are used, such as reviewing billing demand records for large customers and using load research data from nearby utilities. For this analysis, the load research data developed by Anchorage Municipal Light& Power ("AML&,P") prior to its merger with Chugach is used as guidance and modified where deemed appropriate. It must be remembered that load research is used to estimate load patters, not actual loads. Although AML&P is much larger than the SES system, its compactness is believed to make it a better indicator of SES load patterns than other utilities such as Chugach or Homer Electric. The derivation of coincident and non-coincident peaks is V. Cost Allocation and Results 21 216 summarized in Appendix D, and the sum of the calculated monthly coincident peaks is within 1 percent of the actual amount. SCENARIO DESCRIPTIONS The cost allocation analysis was conducted using a single year of revenue requirements. A multiple year analysis would result in over-collection in some years and under-collection in others. In anticipation of selling the utility again being put before the voters, two scenarios were investigated. Scenario 1: Retention of the utility and bringing it up to date. Revenue requirements are based on those projected for 2024, the initial year of the increased labor expenses. Table 7 showed that a small increase would be required the following year. Scenario 2: Sale of the utility with no staff additions or major capital improvements. Revenue requirements are based on those projected for 2023. Since the approval process for the sale of the utility would take at least a year, inclusion of the target margin in the revenue requirements is critical to maintain adequate revenues as inflation cuts into margins during the approval process. RESULTS The results are summarized in the following tables, and details of the results are provided in the Appendix. Specific rate options are discussed in the following section. Scenario 1 - Utility Retention (Table 8): Rates must be increased by an average of $0.060/kilowatt-hour to meet revenue requirements. All rate classes must be increased with those of the Residential and Industrial being the largest increase. The $0.060 increase should be implemented in 2023. A further rate increase of approximately $0.003/kilowatt-hour would be required at the beginning of 2026 absent cost cutting measures that might be implemented (discussed in the next section). Scenario 2 - Utility Sale (Table 9): Rates must be increased by an average of$0.021/kilowatt-hour to meet revenue requirements. Again, the largest increases are found with the Residential and Industrial rate classes. Since revenue requirements are based on the 2023 budget, the increase should be implemented in 2023 even if the utility is to be sold. Since the approval process for the sale will take at least a year, a rate increase is required to maintain adequate revenues during this process. V. Cost Allocation and Results 22 217 Table 8 SES COST OF SERVICE STUDY Scenario 1 (Utility Retention)Allocation Results Street Residential San Gen Svc Boat Harbor Lg Gen Svc Industrial Total Lights Allocated Cost of Service Energy $ 1,643 $ 911 $ 195 $ 2,007 $ 979 $ 7 $ 5,742 Demand 12 CP 1,267,132 1,053,974 153,762 2,978,394 1,389,160 11,379 6,853,801 NCP 420,949 233,758 103,079 576,587 290,173 7,578 1,632,124 Customer Meters 1,536,900 422,806 20,449 58,278 2,211 4,421 2,045,065 Meter Cost 4,933 1,357 66 281 14 14 6,665 Direct SL Direct - - - - - 39,853 39,853 Direct - - 29,455 - - - 29,455 Total $ 3,231,557 $ 1,712,805 $ 307,006 $ 3,615,546 $ 1,682,537 $ 63,253 $ 10,612,704 Revenues From Existing Rates Customer $ 553,097 $ 290,685 $ 14,059 41,974 3,600 903,415 Energy 1,599,325 968,151 205,992 1,042,473 400,296 4,216,237 Demand 1,451,554 693,157 - 2,144,710 Street/YardLights 77,106 77,106 Total $ 2,152,422 $ 1,258,836 $ 220,052 $ 2,536,001 $ 1,097,053 $ 77,106 $ 7,341,469 Allocated Cost of Service 3,231,557 1,712,805 307,006 3,615,546 1,682,537 63,253 10,612,704 Surplus(Deficiency) $ (1,079,135) $ (453,969) $ (86,954) $ (1,079,545) $ (585,484) $ 13,853 $ (3,271,235) Required Adjustment Percentage 50.1% 36.1% 39.5% 42.6% 53.4% -18.0% 44.6% S1kW'h 0.069 0.052 0.020 0.056 0.063 0.060 V. Cost Allocation and Results 23 218 Table 9 SES COST OF SERVICE STUDY Scenario 2 (Utility Sale)Allocation Results Street Residential Sm Gen Svc Boat Harbor Lg Gen Svc Industrial Total Lights Allocated Cost of Service Energy $ 879 $ 487 $ 105 S 1,074 $ 524 $ 4 $ 3,073 Demand 12 CP 1,008,842 839,134 122,419 2,371,284 1,105,996 9,060 5,456,735 NCP 337,976 187,682 82,761 462,935 232,977 6,085 1,310,415 Customer Meters 1,233,122 339,235 16,407 46,759 1,774 3,548 1,640,845 Meter Cost 2,654 730 35 151 8 8 3,586 Direct SL Direct - - - - - 29,347 29,347 Direct - - 17,833 - - - 17,833 Total $ 2,583,473 $ 1,367,268 $ 239,561 $ 2,882,203 $ 1,341,278 $ 48,050 $ 8,461,834 Revenues From Existing Rates Customer $ 553,097 $ 290,685 $ 14,059 41,974 3,600 903,415 Energy 1,599,325 968,151 205,992 1,042,473 391,501 4,207,441 Demand 1,451,554 662,570 - 2,114,124 Street/YardLights 77,106 77,106 Total $ 2,152,422 $ 1,258,836 $ 220,052 $ 2,536,001 $ 1,057,671 $ 77,106 $ 7,302,086 Allocated Cost of Service 2,583,473 1,367,268 239,561 2,882,203 1,341,278 48,050 8,461,834 Surplus(Deficiency) $ (431,052) $ (108,433) $ (19,509) $ (346,202) $ (283,608) $ 29,056 $ (1,159,747) Required Adjustment Percentage 20.0% 8.6% 8.9% 13.7% 26.8% -37.7% 15.9% S/kWh 0.027 0.012 0.004 0.018 0.030 0.021 V. Cost Allocation and Results 24 219 VI. CONSIDERATIONS AND OPTIONS Even though the path forward regarding SES rates will depend on whether the utility is sold, some form of rate increase must be implemented this year. Sale of the utility requires an average increase of $0.02 1/kilowatt-hour, whereas a $0.060/kilowatt-hour average increase is required if the utility is retained. Two overall questions must be considered by the City regarding these adjustments: 1. Should the revenue requirements be adjusted from that used in the analysis? 2. Should the rate increase be applied on an equal basis to each rate class or should the rates be moved closer to their respective allocated cost of service? REVENUE REQUIREMENTS There are a number of actions that can be implemented that would result in reduced revenue requirements. Several of these, however, are policy decisions that would impact rates of other City services. Therefore, these actions are focused more toward Scenario 1 - Utility Retention. Every $1 million reduction (or addition) in revenue requirements represents a $0.018/kilowatt-hour change in the required adjustment. PILT: The analysis is based on a PILT assessment of$1,000,000. The rate of assessment (8 percent of revenues) could be lowered. Administrative Fee: The analysis uses the budgeted amount of $1,035,780 for each year of the study period. How this was developed could not be determined, and the total amount assessed to each department and how it is assessed should be reviewed by the City. Target Margin: Originally, a $500,000 target margin was investigated; but in an attempt to lessen the impact on ratepayers, a margin of $300,000 was used for each year. Further reductions are not recommended, especially for Scenario 2 - Utility Sale. Revenue requirements for that scenario are based on the 2023 budget, and inflation will increase costs during 2024 when the sale is progressing through the approval process. Increased Costs for Utility Retention. This analysis is based on preliminary estimates of the increased expenses required for long-term safe and reliable operations. A working group was recently formed to investigate this in more detail, and revenue requirements may be more or less than that used. VI. Considerations and Options 25 220 RATES AND COST OF SERVICE The analysis showed that all rates must be increased, with Residential and Industrial being the farthest from the allocated cost of service. Should the rate adjustment be applied on an across-the-board basis (same $/kWh increase to all or same percentage to all), or should the rate adjustment to each class differ in an attempt to move them closer to cost-of-service? As noted before, cost-of-service studies are not an exact science, and striving for a zero deviation between class revenues and allocated cost of service is not warranted. Scenario 1 - Utility Retention showed both Residential and Industrial being furthest from cost of service. However, the required adjustments of 50 percent and 53 percent are quite high, and having other rate classes sharing part of it may be in order. For Scenario 2 - Utility Sale, it is recommended that the average rate adjustment of $0.02 1/kilowatt-hour be applied to all rate classes. SES will eventually be blended in with the purchasing utility's own rate classes and cost of service, and an across-the-board increase might lessen rate instability. RATE OPTIONS Scenario 1 - Utilitu Retention Several options are presented in Table 10 with the monthly increase for the average customer in each rate class shown. The average for the Boat Harbor is based on 28 meters, whereas there are numerous end-use customers for each meter. Other options certainly exist and can be explored as requested. Option 1. Increase each rate by $0.055/kilowatt-hour. This results in revenues meeting all revenue requirements but with a very small margin. This option is not recommended unless the revenue requirements can be lowered through policy changes described earlier. Option 2. An across-the-board increase of$0.059/kilowatt-hour. This increases the margin to approximately $269,000, a bit less than the target margin of $300,000. If no other cost-saving measures are implemented, this option would most likely allow rates to be held constant until 2026. Option 3. An across-the-board increase for the full $0.060/kilowatt- hour. The Residential rate class is within 92 percent of its allocated cost of service with the other rate classes making up the difference. Option 4. Implementing rates that move each class closer to cost of service while attempting to lessen the large increase required for Residential. All are within 5 percent of the allocated cost-of-service, which is considered reasonable. VI. Considerations and Options 26 221 Scenario 2- Utility Sale As previously stated, it is recommended that the full $0.02 1/kilowatt-hour increase be implemented on an across-the-board basis. This scenario is shown at the bottom of Table 10. Table 10 SES COST OF SERVICE STUDY Rate Options and Bill Impact Boat Harbor Street Option Residential Sm Gen Svc (28 meters) Lights Lg Gen Svc Industrial Total Scenario 1-Utility Retention 1.1 Increase all by$0.055/kWh Increase($/kWh) $ 0.055 $ 0.055 $ 0.055 $ 0.055 $ 0.055 $ 0.055 Added Revenues $ 864,170 $ 479,020 $ 102,716 $ 1,055,618 $ 514,876 $ 3,723 $ 3,020,123 SES Margins $ 48,898 Avg Monthly Increase $ 34.53 $ 69.57 $ 308.46 $ 1,112.35 $ 14,302.11 $ 51.71 Percent of Cost of Service 90% 99% 101% 98% 95% 1.2 Increase all by$0.059/kWh Increase($/kWh) $ 0.059 $ 0.059 $ 0.059 $ 0.059 $ 0.059 $ 0.059 Added Revenues $ 927,018 $ 513,858 $ 110,186 $ 1,132,390 $ 552,321 $ 3,994 $ 3,239,768 SES Margins $ 268,533 Avg Monthly Increase $ 37.04 $ 74.63 $ 330.89 $ 1,193.25 $ 15,342.26 $ 55.47 Percent of Cost of Service 92% 101% 103% 100% 97% 1.3 Increase all by$0.06/kWh Increase($/kWh) $ 0.060 $ 0.060 $ 0.060 $ 0.060 $ 0.060 $ 0.060 Added Revenues $ 942,730 $ 522,568 $ 112,054 $ 1,151,583 $ 561,683 $ 4,062 $ 3,294,680 SES Margins $ 323,445 Avg Monthly Increase 5 37.67 $ 75.90 $ 336.50 $ 1,213.47 $ 15,60230 $ 56.41 Percent of Cost of Service 92% 102% 104% 101% 98% 1.4 Move to Cost of Service Increase($/kWh) S 0.065 $ 0.060 $ 0.050 $ 0.055 $ 0.060 $ 0.060 Added Revenues $ 1,021,291 $ 522,568 $ 93,378 $ 1,055,618 $ 561,683 $ 4,062 $ 3,258,600 SES Margins $ 287,365 Avg Monthly Increase $ 40.81 $ 75.90 $ 280.42 $ 1,11235 $ 15,602.30 $ 56.41 Percent of Cost of Service 95% 102% 98% 98% 98% Scenario 2-Utility Sale 2.1 Increase all by$/kWh Increase($/kWh) $ 0.021 $ 0.021 $ 0.021 $ 0.021 $ 0.021 $ 0.021 Added Revenues $ 329,956 $ 182,899 $ 39,219 $ 403,054 $ 196,589 $ 1,422 $ 1,153,138 SES Margins $ 332,773 Avg Monthly Increase 5 13.18 $ 26.56 $ 117.77 $ 424.71 $ 5,460.81 $ 1974. Percent of Cost of Service 94% 103% 106% 100% 91% VI. Considerations and Options 27 222 VII. SUMMARY AND RECOMMENDATIONS SUMMARY The last cost-of-service study for SES was completed in 2021. From that study, an Industrial rate class was established and the Alaska SeaLife Center was moved from its special contract to the Industrial rate.' Residential rates were also increased, but both the Residential and Industrial rates were less than their allocated cost of service. Since the time of that study, deferred maintenance items have been completed and debt has been taken on to complete several capital additions. Perhaps more important, staffing levels have been identified to be insufficient to maintain on-going reliable operations. That, coupled with the need for higher salaries to attract qualified personnel, could add nearly $1 million in increased operating costs. All of this, combined with the high general inflation that has occurred over the past two years, has created a potential shortfall in utility revenues. Accordingly, a cost-of-service study was conducted to investigate the adequacy of existing rates and how close each rate class was to its allocated cost of service. Two separate scenarios were investigated: 1. Retaining the utility and implementing measures to ensure long-term reliability. This assumed staff would be expanded, salaries increased, and capital improvements continued to be made. 2. Not implementing these measures in anticipation of selling the utility in the very near future. SCENARIO I -UTILITY RETENTION The analysis found that retaining the utility with the increased costs resulted in a revenue shortfall of $0.060/kilowatt-hour for 2024 and an additional $0.003/kilowatt-hour in 2026 (Table 7). Rates for all rate classes were less than cost-of-service, but Residential and Industrial rates required the largest increase (Table 8). Included in the revenue requirements for this scenario were a target margin of$300,000 per year and transfer to the City's General Fund of approximately $1 million each for Payment in Lieu of Taxes ("PILT") and the City ' The SeaLife Center is transitioning to the full Industrial rate over a period of time with the full rate being implemented January 2025. VII. Summary and Recommendations 28 223 Administrative Fee. The $300,000 target margin represents a reduction from that presented to the City Council on September 11, and further reductions are not recommended. The cost of increased labor costs are based on preliminary estimates and do not include capital improvements that might be necessary to accommodate the increased staffing. PILT and the Administrative Fee can also be lowered, but presumably any reduction from SES transfers would have to be made up from other sources. As point of reference, a reduction of $1 million in revenue requirements equates to approximately $0.018/kilowatt-hour. SCENARIO 2 -UTILITY SALE Although the increased labor costs and capital spending were not included in this scenario, a revenue shortfall equal to $0.021/kilowatt-hour still exists (Table 9). This increase is due to the debt and depreciation associated with the recent capital improvements and general inflation over the past two years. As with Scenario 1, all rates for all classes are currently less than cost of service with Residential and Industrial requiring the largest adjustment. Options to reduce the revenue requirements are limited for this scenario. There would be insufficient time to investigate the effect of reducing the PILT or Administrative Fee. Furthermore, a reduction in the target margin is not recommended since on-going operations and maintenance costs will increase with inflation during the approval process if the utility is sold. RECOMMENDATIONS The City's course of action regarding SES rates will depend on the decision to sell the utility. The following recommendations are made for the City's consideration. SCENARIO 1 -UTILITY RETENTION 1. Implement a rate increase averaging at least $0.059/kilowatt-hour (Options 1.2 in Table 10). This would be sufficient until 2026 when a smaller increase of $0.003/kilowatt-hour is projected to be required, dependent on any cost-saving measures that might be implemented. 2. Investigate the methodologies used in developing the PILT and Administrative Fee and how any reduction to SES would be made up. SCENARIO 2 -UTILITY SALE 1. Implement a rate increase of $0.021/kilowatt-hour on an across-the- board basis. 2. Reductions of the target margin in an attempt to lower the rate increase is not recommended for reasons stated herein. WI. Summary and Recommendations 29 224 3. Investigate how proceeds from the sale could offset the loss of SES payments of PILT and the Administrative Fee and perhaps memorialize the use of such proceeds. WT Summary and Recommendations 30 225 Appendixes Appendix A A-1: Derivation of Revenues - Existing Rates A-2: Derivation of Revenue Requirements Appendix B: Allocation of Revenue Requirements B-1: Scenario 1 (Utility Retention) B-2: Scenario 2 (Utility Sale) Appendix C: Classification of Revenue Requirements C-1: Scenario 1 (Utility Retention) C-2: Scenario 2 (Utility Sale) Appendix D: Plant Data Appendix D not included in council D-1: Plant in Service packet - City Clerk D-2: Functionalization/Classification of Plant Appendix E: Derivation of Peak 226 Appendix A-1 Derivation of Revenues - Existing Rates 227 N 7 7 7 O O 01 7 --i M oo M 01 M 01 N 7 01 N N h O oo h O O Vi 01 Vi h 01 O o0 01 Vi �O h 7 � N oo �O O 01 7 N O 01 7 Vi Vi M O 01 --i 01 Vi 7 M o0 .y r N 7 7 7 O O 01 7 --i M oo M 01 M 01 N 7 01 N N h O oo h O O Vi 01 Vi h 01 O o0 01 Vi �O h 7 N oo �O O 01 7 N 0 01 7 Vi Vi M O 01 --i 01 Vi 7 M o0 N .y r N O �i N 7 N 7 7 7 O O 01 7 --i M oo M 01 M M N 7 �O M O N h O oo h O O Vi 01 Vi h 01 O 01 01 Vi �O 01 �O FCj N oo �O O 01 7 N O 01 7 Vi Vi M O 01 M 01 Vi 7 �O M N n n � � 7 h N 01 h N N oo O Vi M Vi �O N .y r N 7 7 7 O O 01 7 --i M oo M 01 M h N 7 01 O N h O oo h O O Vi 01 Vi h 01 O 01 01 Vi �O O o0 N oo �O O 01 7 N O 01 7 Vi Vi M O 01 Vi 01 Vi 7 --i 01 � N N 00 h Vl M 00 N N N 7 7 N N N .y r ON N N 7 7 7 0 0 7 O O O O O O O O O N M M N N N 7 7 7 0 0 7 N M M W Q 5 w O M W w 7 00 01 00 7 N M h Vi .-I oo � vi � N �O 01 O 7 h N --i V1 h O 01 M 00 7 00 01 00 7 N M h Vi .-I oo h Vi �O N �O 01 O 7 h �' N Vi h O 01 M o0 on 7 00 01 00 7 N m h Vi oo � vi � N �O 01 0 7 h N vi h o a, M o0 7 00 01 00 7 N m h Vi .-I oo h Vi �O N �O 01 0 7 h N vi h o a, M o0 x N Q Q H-I z w Q Appendix A-2 Derivation of Revenue Requirements 229 p y oar �� � y � •p�•p� 1 W W W W m 1'� N t�N vi O �l Vi�~ N r�f. CC rW, O O INN O 1-lu ti M N o^ a o N h h ti C) v M v � v v � N �c � a y oo N C O C tin l� d o 0o gM O oCn .a c o� cb yb 0 5 o � �o3xx� � °Hx 5 � 3xx � � o h h h GGGG y� st NNNN z � _ MMMM F O O O O a .T i •�q Q Ell M 6 h Q R M N b b N O Ot� V tl W O V Q h M N v h N �i � •� c o .o r .... O o � M N v Q v G v p a a a Isom, O h h o a N � o o�n ooa�oo OM a ov o '% a O b O N M E b O m ON o b Oi M M�O O M Q O M N � K �O "Ot a O QQ O v Q O vv ,ti Q y Ci i ti y i U 3 w N G? O y O G tl m V G ��o�3xx�a � �wo333 � 3 3 a GGGG GGGGGG GG � G GG� G GGG GG � � a + + + + + + + + + + + + + + + +.a + + + + G + + + + z a F F F F F F F F F o Q o :3 ��evue°'ue°'ue°'ue°'ue°'ue°'o pppp Npppppp gapppp qpp p gppp � pp pp N N N N N N N N N N N N N N .Gwwwwww& yy ow yyww aww o 8 0 0 0 0 0 0 0 0 0 0 0.a o 0 0 0.a o 0 0.a o 0 0 0 o a o o yj o m m m Rah p > m m m m p m m m 2 11 m Hill m W ti ti ti ti ti ti ti ti ti .. .. .. ..o.. .. .. .. .. ..M o .. .. .. ..M .. .. ..M .. .. .. o .. .. � .. .. 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N �t r r N r 69 69 59 69 c 00 00 l- O N �O •ir V'�N --� --� M \ O O M 01 11O W) o0 M M 1p O M M O C 00 69 69 59 69 M M l- o o0 V'� M o0 �t r CJ M o0 O '!1 o0 M p ry O bU 69 69 59 69 c l� 01 �--� l- V') M �--� 01 N N 110 r- 01 V'� 01 V) \O O � � 00 v') O 01 O v') v') M N �O r" cr O C 01 0 W y N oo N cq rq N N O� O M ^� (N s9 s9 sus s9 s9 l It o0 V' o0 M O U o0 M o0 M M 11O o0 V') M \p M It — �,O N r- ' N x N �t ,� 01 h" 01 h" O o0 oo h" o0 o N 00 M N 1 N 0 m 69 69 69 69 69 l- rq N M N � l� 01 N V') O M M 00 V') 01 V') 00 m M N V') V'� �--� V') � p N GJ N y 69 69 � 69 69 69 CJ GJ Vi Vi tj v t y O W bA O U U bA Ej tj U O D U U i U U Utj it 1 tj UW �1r� E a� a sis Appendix C-1 Classification of Revenue Requirements (Scenario 1 - Utility Retention) 239 N Q A s Q 5 e a U O In O b b b o O ml 0.i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i U z r 0 O In O b b b C O a �a� o M a a s a e o N~ d U a 0 0 00000000 0000000 0000000 0 �� 000000�o 00000 . .a a.a.a.a.a.a. 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V i i i i i i i i i i i i i i i i i i N O Z'U N h O h . . . . . . . . ^i N 0.i i i i i i i i i i i i i i i i i i i i i i i i z r 0 , , , , , , , , , , , , , , , , , , N Q i i i i i i i i i i i i i i i i i i w C r r w M h 0 r a� e M Qi , , , , , , , , , , , , , , , , , , , , , , , d U a 0 0 V w wwwwwwwwwwwwwwwww w'w'w"'w"'w"' w"'w"'% w"' _ � � � xxxxx xxz a z°z°z°z°z°z°z°z°z°z°z°z°z°z°z°z°z°z° HHHHH HHH H F n 'o o'o lu O 3 O O e 3 a DqPA W.,3U Appendix C-2 Classification of Revenue Requirements (Scenario 2 - Utility Sale) 244 chi chi~ .6 6 li N Q A s Q 5 e a U �a U z -9 p z e G1 o v o N N p h Lf J c = d o 0 00000000 0000000 �������� _ � � eeeeee �e eeeee 0000000 0 �� 000000�o 00000 U U U U U U �U UUUUU u u u u z z z z z z z z z z z z y y y--y y y a U U e e e e e e U e e e e e e N N N N O O O O O O O O O O O U O O O O O U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U O ti b Oti ~O~ b C b o h N i i i j U m U vi p 3 ry 4 5 U W o v y 6 ¢ b '¢ S °�no'�3ax�� �a z caa z � 3a z z z z O b O n O C O O V O q b m , N I 1 O m o m C n V N O a� q A m m m O N Q f. rl N S S mm a C q 57 N M N O Z.U O C r b b C M r N w 1a-1 O .9.9 qh 0.i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i U z ti /o d en a �a N Q o 0 , , , �` , ho a m b m �O m m . 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There is no supporting documentation included in the spreadsheet, so there may be reasons I have not thought of for the Committee's assumptions. 1. Total revenues are based on the 2024 budgeted revenues plus $950,000 of additional revenues gained from an assumed rate increase of 15 percent. However, the 2024 budgeted revenues before the increase are higher than the column labeled "Most recent actual 2022." When excluding customer charges and fuel factor revenues,the 2024 budgeted revenues are approximately 16 percent higher than the historic figures. (When including customer charge revenues, total historic is very close to the amount calculated by me and included in my report.) Therefore, it appears that the $950,000 increase represents at least a partial double counting of additional revenues from a rate increase. 2. $72,000 in revenues is added for sales to new homes and "DRP's." No supporting information is provided. Since the average Residential customer pays $1,032/year (excluding COPA),the added revenues represent 70 new homes. Are these now under construction? 3. $10,000 of additional expenses is included for the sales to the new homes. Since the analysis should look at base rates only(non-COPA),this added expense should not be included. Conversely if the added revenues include COPA, the additional revenues should be reduced to exclude COPA revenues. I might add,too,that COPA represents slightly under half of the typical Residential bill, so $10,000 appears to be low. 4. $40,880 of additional sales tax revenues is also included for the sales to new homes. This amount should be excluded from the analysis unless the Administrative Fee assessment is dependent on this amount. - 1 - 265 5. Expenses are reduced by $250,000 for an assumed reduction in line losses. Directly below this line are the words "(Power Factor Fee)." No supporting information is provided. Without knowing where the reduced losses come from, it is difficult to know whether the cost of any required capital improvements should be included. More importantly, however, is what the reduced losses represent. a. If it represents finding additional sales due to poor metering or power theft, then it does indeed represent additional revenues. At 10 cents/kWh for the Residential customer, this represents 2.5 million kWh of unreported energy sales, or 4.6 percent of total sales. b. If the reduced losses represent upgrades to SES infrastructure, purchases from Chugach would be reduced and the reduced expenses should be applied to COPA and not included in the analysis. At a total COPA rate of 10.55 cents/kWh, the $250,000 represents 2.37 million kWh. c. If the losses are a result of power factor penalties, the amount appears to be a bit high. For comparison, the City of Unalaska with 40 million kWh sales to Large General Service and Industrial (compared to 30 million kWh for SES) has budgeted $36,000 in power factor penalty revenues. When comparing SES losses to other utilities, I caution those making comparisons to make sure the comparisons are valid. Many times, utilities report energy amounts in several different categories including sales, station use, and own use. Losses would then represent the difference between generation/purchases and the sum of those three categories. This would provide a much lower loss amount than when based simply on the difference between generation/purchases and sales. 6. One lineman is added to the budget while at the same time overtime for linemen is reduced by $50,000. Is this reasonable? 7. Two positions are added, an assistant director and a lineman plus contractor services for cyber security. Total expenses for these(including benefits) plus increased salaries for the director total $639,750, significantly less than the $1.2 million included in my analysis. 8. PILT is excluded from expenses, but it is, however, later used as a reduction in cash flow. Thus PILT is included in the overall analysis. 9. Cash flow is shown to be $184,460 with a total budget of $14.4 million. This is quite low and a higher amount should be sought. - 2 - 266 10. 1 have not reviewed your debt covenants as to what to include and not include when calculating the Debt Service Coverage Ratio ("DSC"). Based on overall cash flow, however, a DSC of 1.24 is achieved. The City's 2021 Annual Comprehensive Financial Report states that DSC must be at least 1.30, and therefore, the budget prepared by the Committee does not meet that requirement. If you have any questions, please do not hesitate to call. Very truly yours, THE FINANCIAL ENGINEERING COMPANY A-) el/i 7), MICHAEL D. HUBBARD - 3 - 267 Electric Rates & Charges 2024 268 ELECTRIC RATES & CHARGES RATES FOR ELECTRICAL POWER BY CLASS OF SERVICE Seward Utility Cost of Power Class of Service Charge Demand Charge Customer Charge Adjustment /kWh /kWh (COPA) Residential Base Rate Monthly cost adjustment passed directly to Seward Summer* $0.1817 N/A by Chugach Electric $22.10 Association(CEA), Winter $0.1451 N/A based upon CEA's cost of power Small General Base Rate Service (less than 25 kW) See explanation above Summer* $0.1869 N/A $42 22 Winter $0.1527 N/A Boat Harbor (less than 25 kW) $0.1703 N/A $42.22 See explanation above Large General $0.1361 Service (1"200 kWh/kW) $26.93 $44.23 See explanation above $0.0864 (Additional kWh) Industrial $0.1037 $30.00 $100.00 See explanation above Yard Lights $9.94(175 watts) $14.75 (250 watts) N/A N/A $28.09 (400 watts) N/A $70.21 (1000 watts) LED equivalent is /2 of cost Metered Street $0.2064 N/A $44.23 N/A Lights Cost of Power Adjustment(COPA)is based on the cost of energy and demand from Chugach Electric Association(CEA) and will change when there is an adjustment to CEA rates charged to the City of Seward. * Summer is defined to mean the period from April 15 through October 15, with Winter defined as the remainder of the year. **Demand Charges will be based on the maximum demand recorded over a 15-minute period. *** ASLC Transition Industrial Rate - The Special Contract for utility service with the Alaska SeaLife Center (ASLC) terminates on December 31, 2021. As of January 1, 2022, ASLC will be an Industrial customer. However, ASLC will transition to the regular Industrial rate over a three-year period. The transitional Industrial rate applicable to ASLC for 2022,2023,and 2024,are set forth below,with ASLC subject to regular Industrial rates as of 2025. 269 2022 2023 2024 Customer $100.00 $100.00 $100.00 Energy $0.0377 $0.0397 $0.1037 Demand $20.50 $23.67 $26.83 The Large General Service rate will be applicable to all services with a demand of 25 kilowatts or greater forthree or more consecutive months during a year. A Small General Service customer may elect to be billed under the Large General Service schedule. However, the election to change the billing rate from one customer group to another may not be made more often than once every 12 months. The Industrial rate will be applicable to all services with energy usage equal to or greater than 1 million kWh/year. Definitions and Miscellaneous Charges System Delivery Charge: A System Delivery Charge(SDC)of$28.75 will be applied to any service thatuses less than 150 kWh/month, whether or not electric service is used. This replaces the Seward Utility energy charge and the Cost of Power Adjustment and is subject to proration. SDC under this schedule is an addition to the customer charge and is based on a monthly usage of 150 kWh times the energy rate andthe COPA. Absent an active customer, the registered property owner will be billed this monthly minimum charge. Cost of"Power Adjustment(COPA): The Cost of Power adjustment charge from the Power Provider is a direct pass- through of the monthly total Power bill,including fuel costs,energy charges,customer charges, demand charges, and other miscellaneous adjustments,prorated according to the number of kilowatt hours the Seward Electrical Utility customers consumed during the billing period.The monthly rate for COPA may be modified as frequently as monthly,or through the use of a balancing account intended to reduce rate fluctuations. Seward Fuel Adjustment: The Seward Fuel Adjustment cost may be included in the COPA in the event The City operates the standby generation plant,including fuel,labor, maintenance and repair when the cost exceeds the amount budgeted. The cost will be prorated according to the number of kWh the customers consumed during the billing period. VAR Change(Power Factor Adjustment):All schedules requiring demand metering will be subject to the following power factor adjustment provisions: 1. Demand-metered customer should attempt to maintain a unity power factor. If the power factor falls below ninety percent lagging, the customer will take corrective steps to return the power factor to ninety percent or higher. AIsc. the following charge for billed kilowatts wits apply: Monthly Billing Demand=Maximum Demand x 90% Actual Power Factor 2. All power factor adjustment equipment installed by the customer must be approved by the city. Power factor can be determined by permanently installed monitoring equipment or by periodic testing at reasonable intervals, at the discretion of the City. Standby Generation:The cost of operating the standby generation plant to meet a specific customer's need will be charged directly to that customer. Such cost will be the total cost of operating the plant, including fuel, labor, overtime, maintenance,repair and overhead, less the value of energy generated in excess of customer's need. 270 Other Miscellaneous Fees and Charges: Fees and charges for existing facilities can be found on the following pages, as well as engineering service fees and charges for new facilities. Fees are listed according to service zones as follows: ZONE 1 Inside City Limits(excluding the Boat Harbor) ZONE II City limits to Mile 12 Seward Highway,and all roads connecting to the highway within this area ZONE III Mile 12 to Lawing APUC Regulatory Cost Charge:A special surcharge of$0.000626/kWh imposed on electrical utilities by the Regulatory Commission of Alaska. (RCA) in response to the state's intent to assess user fees to support activities of the RCA and departments. This charge was recommended by the RCA as a pass-through charge to retail utilities customers. Alternative Power Rebate: Calculated by subtracting kWh generated by an alternative power source from the kWh supplied to the customer from the City of Seward during the billing cycle. The difference is multiplied by the City's utility/energy charge and the Cost of Power Adjustment (COPA), which are itemized and shown on the bill. Alternative Power Excess Credit: If a customer's alternative power source generates more kWh than supplied from the City of Seward during the billing cycle, the difference is credited to the customer's account at the non- firm avoided cost rate (dollars per kilowatt-hour) of the City's Electric Department. The non-firm avoided cost rate for Seward is defined as those expenses equal to the variable cost per kilowatt-hour for purchased power during the billing cycle—adjusted upward by X percent* to account for line losses. Credits are not provided for capacity. The variable cost of purchased power for Seward is equal to the sum of the base energy rate (BER) and the purchased power&fuel(PP&F)cost as set by Seward's wholesale power supplier. Electric Reliability Organization (ERO) Charge: This charge supports the state mandated Railbelt Reliability Council(RRC)which was approved as the Electric Reliability Organization (ERO)by the Regulatory Commission of Alaska in September of 2022. The City Seward is subject to this charge through state statute. The primary mission of the RRC is to ensure grid reliability by developing and enforcing technically sound reliability standards, reducing long-term costs through grid-wide resource planning, and designing consistent interconnection protocols for grid users. The ERO Surcharge is based on monthly kWh usage. *The percentage used for line losses will be updated annually based on the previous year's line loss rate and rounded to the nearest half percentage point. 271 EXISTING FACILITIES SCHEDULE OF FEES AND CHARGES Service Zone I Zone II Zone III Meter testing $75.75 $106.06 $136.33 Per test,when results determined meter is accurate Reconnection to approved existing meter installation $30.30 $37.88 $45.46 Reconnection to approved existing meter installation outside regular $212.11 $257.52 $302.98 business hours New connection fee $221.14 $221.14 $221.14 Minimum deposit-Residential account $121.54 $121.54 $121.54 Minimum deposit-Commercial or Industrial account $243.09 $243.09 $243.09 The larger The larger The larger of twice of twice of twice Deposit-Interruptible,Off-peak account the the the estimated estimated estimated bill or bill or bill or $243.09 $243.09 $243.09 Tampering with or unauthorized breaking of meter seal $737.06 $737.06 $737.06 Per annum interest on delinquent account 10.5% 10.5% 10.5% Door hanger fee $35.10 $35.10 $35.10 Monthly late fee on delinquent account $6.33 $6.33 $6.33 Dishonored check fee $39.59 $39.59 $39.59 Seasonal turn-on or seasonal turn-off fee 2.17 (excludes brand new service;includes new account name or same $15 $15 $17 account name;waived if<2 months between turn-off and turn-on) each each each Reconnection during regular business hours following disconnection of $57 32 $71.69 $86.03 delinquent account Reconnection outside regular business hours following disconnection of $200.74 $243.72 $287.79 delinquent account Transmission rate $7.90/kW $7.90kW $7.90/kW per month per month per month 272 NEW FACILITIES ENGINEERING SERVICES SCHEDULE OF FEES AND CHARGES Service Zone I Zone II Zone III Temporary secondary service $73.71 $88.46 $103.20 Primary overhead extensions—Residential $73.71 $88.46 $103.20 Primary underground extensions—Residential $73.71 $88.46 $103.20 Secondary service $73.71 $88.46 $103.20 Primary overhead extensions—Subdivision,Mobile Home Park,Multi- $147.41 $176.95 $206.40 Residence Primary overhead extensions—Commercial,Industrial $294.83 $353.80 $383.28 Primary underground extensions—Commercial,Industrial $294.83 $353.80 $383.28 Modifications of existing facilities $147.41 $176.95 $206.40 Street lighting systems&Yard lights $73.71 $88.46 $103.20 NOTE:The Zone Fee or Charge is non-refundable until the service is connected. If the service is constructed and connected,the charge will be adjusted to the actual cost of engineering services. 273 City of Seward,Alaska 2024 Utilities Tariff ' Legislative History Notes 274 City of Seward,Alaska 2024 Utilities Tariff LEGISLATIVE HISTORY NOTES GENERAL CHANGES EFFECTIVE Resolution 96-076 Amending The Utility And Harbor Tams By Revising June 10, 1996 Interest Charges And Adding Other Fees Associated With Delinquent Accounts. Ordinance 00-014 Adopted rules &rate methodologies to June 12, 2000 purchase power from qualifying facilities Resolution 06-023 Authorizing The City Manager To Enter Into A New March 13, 2006 Agreement For The Sale And Purchase Of Electric Power And Energy With Chugach Electric Association, Incorporated. Chapter 3, Legislative History Notes Page 1 275 City of Seward,Alaska 2024 Utilities Tariff ELECTRIC TARIFF EFFECTIVE Resolution 92-064 Adopted May 11, 1992 Resolution 92-186 (Page 2-3) Amended November 16, 1992 Resolution 93-089 Amended June 18, 1993 Resolution 00-029 April 1, 2000 Resolution 00-053 Amended May 22, 2000 Ordinance 00-014 June 22,2000 Resolution 02-138 January 1, 2003 No Resolution *CEA Agr. adjusted demand rates June 11 2006 Resolution 09-115 Amending The Electric Rates And Charges Tariff To January 1, 2010 & Include Automatic Annual Adjustments To All Rates And January 1, 2011 Fees By An Amount Equal To The Previous Five Full Years'Average Increase In The Anchorage Consumer Price Index For All Urban Consumers,And Automatic Pass-Through Of Rate Increases From Chugach Electric Association. No Resolution *CEA Agr. adjusted demand rates May 1, 2011 No Resolution *CEA Agr. adjusted demand rates Resolution 11-081 Amending The Electric Rates And Charges Tariff To January 1, 2012 & Include Automatic Annual Adjustments To All Rates January 1, 2013 And Fees By A Cumulative Amount Of Ten Percent In 2012 And Five Percent In 2013. No Resolution *CEA Agr. adjusted demand rates August 31, 2012 No Resolution *CEA Agr. adjusted demand rates January 1, 2014 Resolution 2013-084 Adopting The Electric Enterprise Fund Biennial Budget January 1, 2014 For Calendar Years 2014 And 2015. Resolution 2014-047 Modifying The Electric Tariff To Add Language For June 7, 2014 Net Metered Customers To Receive Compensation For Producing Energy, No Resolution *CEA Agr. adjusted demand rates July 31, 2014 No Resolution Annual CPI increase 2.6% January 1, 2015 No Resolution *CEA Agr. adjusted demand and energy rates May, 2015 Resolution 2015-089 Amending The Electric Rates And Charges, October 26, 2015 Implementing Seasonal Rates And Freezing Small General Service Rates For 2016 And 2017 No Resolution Annual CPI increase 2.3% January 1, 2016 No Resolution *CEA Agr.adjusted demand rate July 1, 2016 No Resolution *CEA Agr.adjusted demand and energy rates September 1, 2016 No Resolution *CEA Agr. Adjusted demand rates November 1, 2016 No Resolution Annual CPI increase 2.4% Janua 1, 2017 Resolution 2017-068 Amending The Electric Rates And Charges, Reducing January 15, 2018 & Seasonal Rates, And Adjusting Rates To Reflect Seward January 15, 2019 Electric Utility Charge, Cost Of Power Adjustment And Customer Charge For 2018 And 2019 *Council approvedpower agreement with CEA which adjusted the demand charge rate, but not by specific resolution. Chapter 3, Legislative History Notes Page 2 276 City of Seward,Alaska 2024 Utilities Tariff WATER TARIFF EFFECTIVE Resolution 92-065 Adopted May 11, 1992 Resolution 92-113 Amended June 22, 1992 Resolution 93-090 Amended June 14, 1993 Resolution 93-142 (Fire Amended September 27, 1993 Hydrants) Resolution 95-032 Amended April 24, 1995 Resolution 99-048 (Ship Amended April 26, 1999 Water) Resolution 03-155 Amending The Water TarifAnd The Sewer Tariff. January 1, 2004 Resolution 04-106 Amending The Water Tariff. January 1, 2005 Resolution 09-117 Amending The Water TariAnd Providing For Automatic January 1, 2010 & Annual Adjustments To All Rates And Fees By An Amount January 1, 2011 Equal To The Five Previous Full Years'Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Resolution 11-080 Amending The Water Tariff And Providing For A 4% January 1, 2012 & Increase In Calendar Year 2012 And 6%Increase In January 1, 2013 Calendar Year 2013 And Providing For An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Resolution 13-085 Adopting The Water Enterprise Fund Biennial Budget January 1, 2014 For Calendar Years 2014 And 2015. Resolution 15-091 Amending The Water Tariff To Provide For A 4.3% January 1, 2016 & Increase In The 2016 Calendar Year And A 2.4% January 1, 2017 Increase In The 2017 Calendar Year,And Allow For An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years'Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Resolution 2017-078 Amending The Water Tariff To Provide For A 2.1%Rate January 1, 2018 Increase, Clarifying Metered Versus Non-Metered, Increasing Base Rate For 1 112"-2"Meters, Changing The Seasonal Definition,And Other Minor Housekeeping Issues. Resolution 2018-032 Amending The Water Tariff To Provide For 2.1%Rate Passed April 9,2018 Increase Beginning January 15, 2018, Clarifying That Retroactive to Metered Rates Apply To All Customers Other Than Non- January 15, 2018 Commercial Residential, Changing The Seasonal Definition,And Other Minor Housekeeping Changes. Chapter 3, Legislative History Notes Page 3 277 City of Seward,Alaska 2024 Utilities Tariff SEWER/WASTEWATER TARIFF EFFECTIVE Resolution 92-066 Adopted May 11, 1992 Resolution 92-113 Amended June 22, 1992 Resolution 93-091 Amended June 14, 1993 Resolution 03-155 Amending The Water TariffAnd The Sewer Tariff. January 1, 2004 Resolution 04-105 Amending The Sewer Tariff. January 1, 2005 Resolution 07-123 (5%T) Amending The Sewer Tariff To Increase All Sewer Tarim January 1, 2008 Charges By 5%Effective January], 2008. Resolution 09-118 Amending The Wastewater Tariff And Providing For January 1, 2010 & Automatic Annual Adjustments To All Rates And Fees January 1, 2011 By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Resolution 11-079 Amending The Wastewater TariffAnd Providing For A January 1, 2012 & 6%Increase In Calendar Year 2012 And A 6%Increase January 1, 2013 In Calendar Year 2013 And Providing For An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Resolution 13-097 Amending The Wastewater Tar ffBy Upward Adjusting January 1, 2014 All Rates And Fees By 5.2%Effective The First Billing Cycle In January 2014. Resolution 13-098 Amending The Wastewater Tar ffBy Upward Adjusting January 1, 2015 All Rates And Fees By An Additional 5.2%Effective The First Billing Cycle In January 2015. Resolution 15-090 Amending The Sewer Tariff To Provide For A 4.3% January 1, 2016 & Increase In The 2016 Calendar Year And A 4.4% January 1, 2017 Increase In The 2017 Calendar Year,And Allow An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years'Average Increase In The Anchorage Consumer Price Index CPI For All Urban Consumers. Resolution 2017-077 Amending The Sewer Tariff To Provide For A 2.1% January 1, 2018 Rate Adjustment Beginning The First Billing Cycle Of The 2018 Calendar Year,Adding A Seasonal Turn- On/Turn-Off Fee, Clarifying That Metered Rates Apply Only To Class D Customers,And Other Minor Housekeeping Changes. Resolution 2018-030 Amending The Sewer Tariff To Provide For A 2.1%Rate Retroactive to Adjustment Beginning January 15, 2018,Adding January 15, 2018 Seasonal Turn-OnlTurn-Off Fee, Clarifying That Metered Rates Apply To All Customers Other Than Non- Commercial Residential,And Other Minor Housekeeping Changes. Chapter 3, Legislative History Notes Page 4 278 • AMP Resolution 2023-124 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE BROWN & HAWKINS FIRE SUPPRESSION SYSTEM PROJECT FOR THE HISTORICAL BUILDING LOCATED AT 205, 207 & 209 FOURTH AVENUE AND RECOMMENDING THE CITY MANAGER ACCEPT AND ADMINISTER FEDERAL FUNDING PROVIDED BY THE ALASKA DEPARTMENT OF NATURAL RESOURCES Documents: • Agenda Statement • Resolution 2023-124 • Attachments: o Memorandum of Understanding o CLG Grant Application o Historic Preservation Commission Resolution 2023-003 279 City Council Agenda Statement . Meeting Date: November 13, 2023 To: City Council Through: Historic Preservation Commission From: City Clerk Subject: Resolution 2023-123: Supporting The Brown& Hawkins Fire Suppression System Project For The Historical Building Located At 205, 207 & 209 Fourth Avenue And Recommending The City Manager Accept And Administer Federal Funding Provided By The Alaska Department Of Natural Resources Background and justification: Historic Preservation Commission held a Special Meeting on October 19, 2023 and approved Resolution 2023-003: A Resolution Of The Historic Preservation Commission Of The City Of Seward, Alaska, Supporting The Brown & Hawkins Fire Suppression System Project For The Historical Building Located At 205, 207 & 209 Fourth Avenue And Recommending The City Manager Accept And Administer Federal Funding Provided By The Alaska Department Of Natural Resources This resolution is now being brought forward to City Council for approval. 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: $ 50,000 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): Fund to be created Not budgeted x Not applicable 280 Fund Balance Information Affected Fund (✓):03000-1210-8103 General SMIC Electric Wastewater Boat Harbor Parking F1 Water Healthcare Motor Pool Other Note:amounts are unaudited Available Fund Balance 10/31/23. $ Finance Director Signature: Attorney Review RYes Attorney Signature: X Not applicable Comments: Administration Recommendation Adopt Resolution x Other: N/A 281 Sponsored by: Historic Preservation Commission CITY OF SEWARD,ALASKA HISTORIC PRESERVATION COMMISSION RESOLUTION 2023-124 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE BROWN & HAWKINS FIRE SUPPRESSION SYSTEM PROJECT FOR THE HISTORICAL BUILDING LOCATED AT 205,207 & 209 FOURTH AVENUE AND RECOMMENDING THE CITY MANAGER ACCEPT AND ADMINISTER FEDERAL FUNDING PROVIDED BY THE ALASKA DEPARTMENT OF NATURAL RESOURCES WHEREAS, Brown & Hawkins was founded in 1903 by TW Hawkins and Charles E. Brown as a mercantile and grocery store that provided settlers with supplies; and WHEREAS, one of Alaska's first banks was operated in Brown & Hawkins which to this day remains preserved within the buildings along with many other stories of not only Seward's history, but Alaska's and the Nation's history as well; and WHEREAS, the recent fire in Lahaina, Hawaii has touched home to Seward as we remember and never forget our own history of when the east side of Fourth Avenue entirely burnt down as the code and construction of our historic buildings leave our history vulnerable; and WHEREAS, Brown & Hawkins is recognized by The United States and the State as it is recorded on the Nation's Register of Historic Places, the State's Register of Historic Places, and Seward's list of Historic Places; and WHEREAS, Brown&Hawkins recently was selected by the National Parks Service for a Historic American Building's Survey (HABS)that will be completed November 2023, and the survey will be recorded in the Nation's Library of Congress; and WHEREAS, Brown and Hawkins hosted President Harding in 1923 as well as President Obama in Sweet Darlings in 2015; and WHEREAS, the City of Seward recognizes the importance and value of partnership opportunities with local organizations and their United States and State governments; and WHEREAS,the Darling Family Trust, owners of Brown& Hawkins,have requested bids to install a fire suppression system at Brown& Hawkins Buildings; and WHEREAS, three contractors have submitted bids to equipped 205, 207 and 209 Fourth Avenue with a fire suppression system; and WHEREAS, the Resurrection Bay Historical Society finds the project to greatly contribute to the preservation of Seward's history and is sponsoring the project; and 282 CITY OF SEWARD,ALASKA RESOLUTION 2023-124 WHEREAS, the total project cost is estimated to be $337,844 of which $50,000 of the project is to be federally funded through The Alaska Department of Natural Resources Certified Local Government Grant(CLG)program; and WHEREAS, to complete the CLG grant application, a City Council and Historic Preservation Commission Resolution must be passed and approved; and WHEREAS,the Historic Preservation Commission supports this project as it protects and preserves Brown & Hawkins and it highly supports the preservation and safety of Seward's history that is important to both The State of Alaska and The United States history; and NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: Section 1. The City Council directs the city manager to authorize and accept federal funds from The Department of Natural Resources for the installation of a fire suppression system located at 205, 207 & 209 Fourth Avenue. Section 2. The City Council directs the city manager to authorize the city finance department to withhold 2% of all funds received to cover the cost incurred to the City to process the grant funding. Section 3. This resolution shall take effect immediately upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 13th day of November, 2023. THE CITY OF SEWARD,ALASKA Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk 283 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SEWARD AND THE DARLING FAMILYTRUST The Darling Family Trust hereafter referred to as the Trust and the City of Seward hereafter referred to as the City, enter a cooperative agreement for the city to sponsor the Brown & Hawkins fire suppression project to apply for, administer and pass-through grant funding for the State Historic Preservation Office (SHPO) Certified Local Government (CLG) grant for the installation of a fire suppression system in the historic Brown & Hawkins buildings. The City of Seward is a CLG that is eligible to receive grant funding for historic preservation. The City of Seward appointed the Historic Preservation to work as an advisory board to the City Council to review and make recommendations about local projects that preserve and protect Seward's history. The Seward Historic Preservation Commission has identified the Brown & Hawkins fire suppression project and recommends the Seward City Council direct the City Manager to sign CLG grant project application submitted to SHPO and accept the federal funding as a pass through for the project. The City of Seward is dedicated to promoting and protecting Seward's history. It is mutually beneficial for the City and the Trust to work cooperatively to assure the continued preservation of this valuable piece of history located in Seward's Historic Downtown as stated in The City's 2017 Seward Historic Preservation Plan. The parties, therefore, agree as follows: The Darling Family Trust shall: • Be named the sponsor for the project for purpose of being liable for the administering and reporting of the grant • Provide the staff and funding necessary to administer the project to completion. The City of Seward shall: • Sign and submit the completed grant application that has been reviewed by the Seward Historic Preservation Commission and the National Park Service. • Review and submit all grant reporting provided by The Darling Family Trust • Accept and pass through CLG grant funds to The Darling Family Trust The parties mutually agree that • Following review by both parties,this agreement may be amended as necessary by mutual consent of both parties. • The term of this agreement shall commence November 13, 2023 • Either party may terminate this agreement by providing 180 days written notice. Unless terminated by written notice, this agreement will remain in force. 284 ------------------------------------------------------------------------------------------------------------------------------- I------------------------------------------------------------------------------------------------------------------------------- Kat Sorensen, City Manager Iris Darling, Trustee City of Seward The Darling Family Trust 285 CLG GRANT APPLICATION Office of History&Archaeology Alaska Department of Natural Resources 550 West 7"Avenue, Suite 1310 Anchorage, Alaska 99501 FY23 Historic Preservation Fund: Grants for Certified Local Governments Deadline: Applications are due by 3:00 pm on Friday, October 13,2023. The Certified Local Government (CLG) identified below is applying for a reimbursable 60-40 Historic Preservation Fund (HPF) matching grant through the State of Alaska, Department of Natural Resources, Office of History and Archaeology. CLG Name: Seward, Alaska Project Title: Brown & Hawkins Fire Suppression System Federal Tax Identification Number: UEL• VCUST: Type of CLG Grant Project: (Check project type below, as applicable) x Development Budget Summary. Federal Award Request: $ 5 0,0 0 0 a. Total Project Cost (TPC) $350,854 b. Federal Share (60%) $50,000 c. Sponsor Share(40%) $301,853 Source of applicant(sponsor) share: (Use figures from"Sources"box on budget form) a. Cash $281,603 b. In-kind Goods and Services $5,250 c. Donated Goods and Services $ 15,000 Name,title and contact information for the following: Grant Manager: Kat Sorensen Mailing Address: Po Box 167 City, State, Zip: Seward, AK 99664 Telephone: (907) 362-1020 E-mail Address: ksorensen@cityofseward.net HPF Grant Application for CLGs 286 Rev:Aug 2023 Preservation Commission Chair: Tanguy Libbrecht Mailing Address: 7307 Bailey Drive Anchorage, AK 99502 Telephone: 907-529-9709 E-mail Address: tylibbrecht(a�gmail.com CLG Contact: Kat Sorensen Mailing Address: PO Box 167 Seward, AK 99664 Telephone: (907) 362-1020 E-mail Address: ksorensenLcityofseward.net Signature: Authorized Local Government Official Date Kat Sorensen,City Manager Seward, Alaska HPF Grant Application for CLGs 287 Rev:Aug 2023 Willingness to Comply with Grant Requirements 1. I understand that this is a 60-40 matching grant application through the Historic Preservation Fund (HPF) administered by the State of Alaska Department of Natural Resources, Office of History and Archaeology. 2. If awarded an HPF grant, I understand that it is my responsibility to comply with all pertinent State and Federal regulations, the State-Local Grant Agreement, and requirements outlined in the Historic Preservation Fund.• Certified Local Government Grants Manual. 3. Should this project be awarded, I understand that project records are subject to audit after project completion, and that if such an audit questions expenditures for which I have been reimbursed I will return an amount equal to the questioned expenditures. 4. I understand that no grant exists until the State Historic Preservation Officer(SHPO)signs the State-Local Grant Agreement, even if the Alaska Historical Commission recommends funds for my project. Any funds expended before the performance period specified on the fully executed grant agreement or before obtaining the SHPO's signature may not be reimbursed without specific approval. Signature: Authorized Local Government Official Date Kat Sorensen, Seward City Manager 288 CLG GRANT APPLICATION: FY23 CLG: Seward, Alaska Project Name: Brown & Hawkins Fire Suppression System Project PROJECT INFORMATION See Writing a Successful CLG Application for more detail. 1. PROJECT DESCRIPTION—If needed, use continuation pages provided at the end of this document. a. Provide a brief introduction to your project including the aim, scope, and significance of the project to your community. The Brown&Hawkins Store (AHRS Site SEW-038) in Seward, Alaska consists of three buildings joined together (205,207 and 209) on Fourth Avenue in Seward's Historic Downtown. The three buildings combined total is 22,060 square feet. To ensure the long-term preservation of this significant component of Seward's history, it is critical to install a fire suppression system. A fire suppression system will ensure all future efforts to preserve this listed National Register of Historic Places property will last well into the future. The recent fires in Lahaina, Hawaii, illustrate that historic districts are vulnerable to fire, and we aim to prevent any fires at the Brown&Hawkins store with the installation of this fire suppression system. This project will also help protect the surrounding businesses and citizens of downtown Seward. HPF Grant Application for CLGs 289 Rev:Aug 2023 b. List any previous HPF grants this project has received. (Cite HPF number and grant name) None c. Briefly describe the relationship of this project to past,present, or future preservation work. Brown &Hawkins was built in 1903 as a commercial store and has been a family operated business ever since. Owner T.W. Hawkins and his descendants all passionately promoted the community of Seward, its growth and the long-term preservation of its downtown commercial area. The Brown&Hawkins buildings retain a significant level of historic integrity including original craftsmanship and woodwork which help relay the stories of the family's history, Seward's development and construction practices of that era. Building codes have developed a lot since 1903. To bring a historic building up to the current code requires adding layers of protection that were not available at the turn of the century. In some cases, efforts to improve the fire resistance of a building cover up valuable history with layers of sheetrock or replace antiques with contemporary equipment. A fire suppression system provides a level of fire protection that enables the building to be used continuously while highlighting its history and significance to the community of Seward. HPF Grant Application for CLGs 290 Rev:Aug 2023 2. PRESERVATION OBJECTIVES How does the project relate to annual CLG grant priorities established for this fiscal year? (Cite relevant grant priorities and explain how each relates to your project.) httns://dnr.alaska.gov/narks/oha/clg/akcla.htm a. The Brown&Hawkins fire suppression project fits into 3 of the 6 CLG grant priorities listed for the fiscal year, 2023. 1. Projects that increase public awareness of historic preservation and establish partnerships to strengthen their local historic program: Today, Brown & Hawkins stands tall at the head of Resurrection Bay as a monument to Alaska's gateway- in Seward's historic downtown. The Brown & Hawkins buildings have been recognized by Federal, State and local governments as a significant historical building and they represent and bring awareness to Alaska's history. Brown&Hawkins began as a one-story building in 1903 and has been preserved and restored to resemble and reflect to the public its original completed build, circa 1910. The project has been presented to Seward's Historic Preservation Commission, The Resurrection Bay Historic Society(RBHS) and The Seward City Council. Through our efforts to gain support from our Certified Local Government we have found this project has brought a great deal of awareness to the citizens, City officials and City administration around the opportunities and partnerships that are available to strengthen Seward's local historic programs. Seward's HP Commission has displayed enthusiasm and overwhelming support as this project is aligned with many goals set forth in their 2017 Historic Preservation Plan. Due to schedule conflicts, the RBHS board is currently reviewing the grant package and will make a decision in the following weeks as to what capacity they can further support the project. Continued on Continuation page 1 b. How does the project relate to the goals and objectives of the State Historic Preservation Plan. (Cite relevant goals and objectives and how your project would further them) The State Historic Preservation Plan aims to: "Identify new and strengthen current partnerships to preserve, protect, educate, and advocate for Alaska's cultural resources". The Brown&Hawkins project can be emphasized as a cooperative agreement that resulted in new partnerships and streamlined procedures. The Darling Family Trust was successful in creating a partnership with The Resurrection Bay Historical Society to sponsor the project so the Seward Historic Preservation Commission could recommend the City of Seward partner with a local nonprofit to help preserve and protect a local asset. Through the process of partnering with a local nonprofit and bringing the project through a legislative process, a set of guidelines were also presented and adopted for the benefit of future historic preservation projects to also be guided and allowed equal opportunities to succeed. The local partnerships and community of Seward along with the support and guidance of the State are just one of the many ways Seward is recognized for its historical treasures- through artifacts, properties, stories and the people. "Promote the economic benefits of historic preservation. Partner with local entities, like the Chamber of Commerce, to demonstrate how historic preservation impacts local economies.". The Darling Family Trust has reached out to SHPO and have invoked a plan to partner with SHPO to present the Brown &Hawkins project along with SHPO's presentation on how historic preservation can impact local economies at an upcoming Chamber luncheon. (Continued on Continuation Page 2) HPF Grant Application for CLGs 2931 Rev:Aug 2023 c. Describe how the project meets an identified historic preservation priority of your community. Does the project contribute to the implementation of your local historic preservation plan? If so, how? Under section 3.2, (page 6) Goals for Historic Preservation of Seward's 2017 Historic Preservation Plan approved by Seward City Council there are 5 primary goals/priorities. (Plan is currently under revision) 1. Encourage community engagement to increase foot traffic and tourism which enhances the patronage of local business. 2. Focus on preserving Seward's history while coordinating with other organizations. 3. Promote preservation in key areas through preserving traditions and landmarks. 4. Clarify and affirm the advisory role of the Commission in preservation. 5. Encourage adoption of local, borough and state historic incentives. The Brown&Hawkins CLG grant application is particularly relevant to Goals 1, Goal 2 and Goal 3. Goal 1: As stated in the 2017 HP Plan there are many reasons why a community preserves elements of their past despite inevitable changes. Economically, the preservation of downtown historic areas increases foot traffic and tourism which boosts the success of local businesses. This has always been important to Seward. Brown &Hawkins was founded in 1903 by TW Hawkins and Charles E. Brown as a mercantile grocery store providing newcomers with needed supplies. One of Alaska's first banks was operated in the Brown& Hawkins building which to this day remains preserved within the building. The recent fire in Lahaina, Hawaii has brought home to Seward the danger lurking downtown. In the early 1940's the east side of 4th Avenue burned entirely down. The west side in which Brown &Hawkins is located still has the code and construction of those early pioneer buildings. A fire suppression system would go a long way to protect not only the Brown &Hawkins building but other adjacent businesses in the downtown historic district as well. Goal 2: The National Park Service has nearly completed Historic American Building Survey(HABS) records for the Brown and Hawkins Store including a history, large format photography and measured drawings. The collection will be included in the collection at the Library of Congress when completed in November 2023. The measured drawings have been instrumental in the planning efforts for the fire suppression installation. Goal 3: Preserving traditions and landmarks in key areas gives a sense of place that encourages community building and allows residents, old, new and seasonal to create a connection with their surroundings. The downtown historic commercial district is the beating heart of Seward. It has been since 1903. So much so that the Seward Historic Walking Tour, also funded by a CLG grant, has a sign that says exactly that. At the center of this beating heart is Brown&Hawkins, beloved not only by Seward but the entire State of Alaska. Brown and Hawkins have hosted two American presidents. The first was President Harding on their balcony in 1923. The second president more recently was President Obama in Sweet Darlings in 2015. It is important that steps are taken to protect this incredible historic treasure. Again, fire is always a fear with these old buildings and the sustainability of future restoration to the property will depend on having a fire suppression system. A fire suppression system is a smart solution to protect and sustain future projects. In conclusion to this section, with the huge success of the Historic Walking Tour, Seward is more and more aware of the wonderful history these buildings represent. They are from a time when incredible people, like Thomas Hawkins and Charles Brown carved a town from wilderness. They are a testament to the enduring pioneer spirit of Alaskans, both then and now. HPF Grant Application for Cl-Gs 292 Rev:Aug 2023 3. PROJECT PERSONNEL- The Project Manager (PM) must have proven experience working on historic preservation projects. If the project is a survey, inventory, or National Register nomination, the PM must meet the professional qualification standards in 36 CFR 61. If not identified in this application, the Office of History and Archaeology must review selection of Project Manager prior to finalization of the contract with the individual. a. Note who will act as Project Manager(PM). Attach the PM's resume showing past experience working on preservation projects. List any previous HPF Projects the PM has worked on. (If planning to contract with PMafter grant is awarded, outline the job qualifications that will be required.) National Park Service Historical Architect, John Watchel, will act as the Project Manager; resume attached. Ristine Casagranda will act as the Assistant Project Manager(APM) to the Project Manager; resume is attached. Once the grant is awarded, the APM will ensure the selected contractor and tradesmen have access to the property. The APM will assist in coordinating electrician, plumber and carpenter to ensure all the finish work is completed after the installation of the system has been finalized. National Park Service Historical Architect, Grant Crosby, will assist with reviews of shop drawings and equipment placement to ensure the building's character defining features are not diminished throughout the course of the project. Grant is a registered Architect in the State of Alaska and is a technical committee member for the National Fire Protection Association's NFPA 914: Code for the Protection of Historic Structures. b. Identify the local government personnel who will act as Grants Manager for the project. Kat Sorensen, City of Seward City Manager. Ks orenson(a�cityofs eward.net (907) 362-1020 HPF Grant Application for Cl-Gs 293 Rev:Aug 2023 c. Describe the local historic preservation commission's role in the project. Attach a resolution from the commission supporting the project. The Seward Historic Preservation Commission has been extremely supportive and enthusiastic of the project. Maria Lewis, Architectural Historian and CLG Program Coordinator with The Alaska State Historic Preservation Office and Office of History &Archaeology attended the Seward HP Commission's August meeting to educate and assist the commission with community outreach and funding opportunities. At the same August meeting, The Darling Family also was in attendance and shared their current preservation projects, one of which was the fire suppression system project. The HP Commission of Seward agreed to schedule a special meeting to vote on a resolution to support The Darling Family efforts through a CLG grant. Seward's HP Commission has scheduled a special meeting for October 19, 2023 where they will bring forward a resolution to recommend the City Council accept and pass through SHPO funding for the project. d. Identify volunteer personnel and their tasks. Volunteer staff is Assistant Project Manager, Ristine Casagranda. Tasks of the project APM are listed above in question#3 Ristine also has volunteered all her time to write the grant, attend and present at HP and City Council meetings, present to The Resurrection Bay Historical Society, draft Memorandums of Agreement for the collaboration of local entities to work together as well as drafted legislation for both the HP and City Council Resolutions. She will be working in the capacity of the Assistant Grant Manager to this project. e. Identify any additional contractors to be used and expected duties.Attach resumes for all qualified historic preservation professionals working on the project. Metco will upgrade the water line to the building from the City's water main on Fourth Avenue. The selected fire suppression installation contractor will tie the system into the City's main. A contractor will be hired to pave and repair the sidewalk after excavation work is complete. As of date, we have not selected the contractor to install the fire suppression system. We did, however, put out a Request for Qualification (attached) and received qualified bids from three contractors out of Anchorage. We meet with one of the contractors the second week of September and have scheduled to meet with the other contractor on November 3", 2023. We intend to select a contractor no later than November 81n, 2023. Our financial projections are based on the two lowest bids received. Brewi Enterprises will be hired for all plumbing not covered by Metco or the fire suppression contractor and AC Electric will be hired for any electrical work that is outside the scope of work or the selected bid. HPF Grant Application for Cl-Gs 294 Rev:Aug 2023 4. WORK PLAN. Thoroughly address all items necessary for your project type. See Writing Successful CLG Application for more detail. Use continuation sheets if needed. a. Explain how the project will be undertaken. The selected fire suppression contractor is the main contractor for the project and will be acting as the Project Manager from the construction aspect of the project. The contractor will work with the City in the permitting process and will also work directly with the APM to contract all other needed contractors on an as needed basis. Attached are the 3 project quotes received and the scope of work is outlined in the quotes. Ristine Casagranda will serve as the Assistant Project Manager and will be overseen by National Park Service Historical Architect, John Wachtel, for the entire project to ensure the project is complete, as there are items that the fire suppression contractors have clearly outlined in their quotes that are not included in their scope of work- items such as excavating, paving, connecting to city water main, patching holes, painting pipes and administering the grant. Once the contractor completes the installation of the fire suppression system, APM will work with the carpenter to ensure all the finish work is complete. The connection to the City's main and final system testing will take place in the Spring as soon as the ground is thawed. HPF Grant Application for CI-Gs 295 Rev:Aug 2023 b. Describe the geographic area encompassed by the proposed project. For survey, inventory, and National Register nomination projects, attach maps of the project area. Include the estimated number of buildings, structures, sites, square miles, etc., to be addressed. Brown &Hawkins is located in the Downtown Historic District of Seward, Alaska. It is in the Commercial Business District Zone. There are restaurants, bars, gift shops, men and women's clothing retail, coffee shops-just to name a few. Many of the surrounding buildings also have long term or short-term residential units on the second floor. The Alaska Sea Life Center, Hoben Park and The National Park Service offices located in the Sully Building are all familiar neighbors. Resurrection Bay is a half a block away and the majestic mountains of the Chugach National Forrest paint the backdrop to the City's setting. c. Cite any planning studies, condition assessments, design drawings, research reports, publications, or other sources of relevant information you plan to use for this project. Attached is the draft of the National Park Service Historic American Buildings Survey (HABS) Attached are the drawings for the Fire Suppression System proposed layout and notes that were delivered to all bidders of the project Attached is The Request for Qualification that was sent out to all bidders Attached are the bids that have been submitted to complete the project HPF Grant Application for CLGs 296 Rev:Aug 2023 d. Provide a work schedule showing months, expected activities, and benchmarks to achieve throughout the grant period of performance. January 2, 2024 -Apply for city permits. February 21, 2024 - Selected fire suppression contractor will begin work. The contractor will work closely with the APM who will be working closely with Grant Crosby of NPS to ensure the system is installed throughout the buildings with historic preservation kept as a top priority. Piping will be installed to be the least distracting to the building's historical aesthetics and where possible there will be brass fittings installed that will be in align with the era and history we seek to preserve. Other piping will be painted to blend into the ceiling/walls in which they are located. The submitted bids estimate their work will take approximately three weeks to finish. The Darling Family intends to keep the two storefronts vacant until the project is complete to provide the space needed for the contractor to work and to avoid having to potentially interfere with a tenant's belongings. Brewi Enterprises and AC Electric will be available on a as needed basis to address any plumbing or electrical needs that may surface and will act as a support to the fire suppression system contractor. March 15, 2024- All necessary patching of wall or painting from the installation of piping will be addressed. Once the ground unthaws in the Spring, Metco will be hired to do all necessary excavating, piping installation and street and sidewalk pavement repair needed to connect the system to the City's water main. Upon completion of connection to the city's water main, the selected contractor will return to test the system. The project is slated to be completed by May 15th, 2023, or sooner-weather permitting. HPF Grant Application for CI-Gs 297 Rev:Aug 2023 5. FINAL PRODUCTS a. Describe publications,workshops,audio-visual materials,reports,websites,brochures,survey materials, nominations, interpretive signs, etc., that will be produced as part of the proposed project. Identify the intended audience and where the public will be able to access these materials. Describe how you will inform your community about the project. An article will be writtenfor and published in the local paper, the Seward Journal, upon completion of the project to share the details of the project with the public. An open house and reception will be held for the public to attend with special invitations to the City Council, HP Commision and RBHS members at the property within one month of the project's completion date. HPF Grant Application for CLGs 298 Rev:Aug 2023 6. ADDITIONAL INFORMATION a. Attach letters of commitment and support, as appropriate, from teachers,historical societies, museums,Native groups, and others. (Note attachments below.) Letter of support from RBHS Letter of support from Seward HP Commission b. Attach any other relevant information, such as copies of photographs. (Note attachments below) 7. BUDGET: Maximum Federal Request of$50,000 Your budget submittal shall consist of one narrative and two tables. Use fellable Excel worksheet or submit similar budget tables, and complete the narrative portion below for this Budget section. a.Budget Summary table identifying planned cost share of 60% and 40% b. Matching Share table showing sources of match. c.Budget Narrative explaining costs in detail and describing how costs were calculated. BUDGET NARRATIVE: Describe activities to be performed under Personal Services, Contractual Services, Supplies/Materials, Travel, and Other cost categories. a. Personal Services: describe work each position/person will perform for the proposed project. Ristine Casagranda has volunteered her time grant writing. Hourly grant writing rate is $40/hour and it is estimated total hours are 125 hours. Ristine Casagranda will volunteer her time as the project manager for the project. Ristine has been working on this project since May 2022. Pre-project management hours include soliciting bids, researching and discussing the project with professionals and presenting the project to potential partners and sponsors. Upon execution of the project the project management hours will be accounted for by hours spent coordinating execution and completion of the project. Project manager will assure all contractors have access to the property, the work is completed while history is well preserved and will assist the main contractor in coordinating with city officials and other contractors. Total estimated hours of project management are 250 hours at $40/hour. HPF Grant Application for Cl-Gs 29+9 Rev:Aug 2023 b. Contractual Services: List contractor name(s), if known. Describe work each will perform. Metco- excavating and installation of upgraded waterline. Metco provided an estimate of$20,000. Unknown contractor- to repair pavement of sidewalk and street and shore up balcony as needed for excavator. This cost is estimated to be $20,000. Unknown contractor- install all fire suppression piping and monitoring system. Will work with the city in the permitting process as well as act as the overall project manager. Bids received vary from $242,610 to $453,189. We have composed and submitted a budget based on the lowest bid although as of date, a contractor has not been selected. Brewi Enterprises- To install plumbing on an as needed basis. This is estimated to be $7,000. AC Electric- To upgrade wiring on an as needed basis, particularly to the monitoring system that will be installed. This is estimated to be $15,000. Unknown Contractor- to patch holes, repair walls and ceilings and paint fire tape and pipe after installation of system in complete. This is estimated to cost$10,000. c. Supplies/Materials: Describe types of materials and/or supplies required for this project, how they relate to the project, estimated quantities, etc. All supplies are included in the contracted service bids/estimates. d. Travel: Identify who will be traveling, how many trips are anticipated, trip purpose, and destination. The Fire Suppression System contractor will be provided with lodging for 2 weeks, for 3 workers. This will be an in-kind contribution as the lodging provided will be on-site. This in-kind contribution is estimated to be $5,250 HPF Grant Application for CLGs 300 Rev:Aug 2023 e. Other: Identify other costs which do not fall into one of the above categories. Explain purpose and relevance to this proposed project. City building permits will cost $933.75 as the estimated overall project cost is $350,854 and this is the fee associated to those costs. City of Seward- 2% of the grant fiends will be paid to the City for administering the grant fiinds. This cost is $1,000. Unknown Contractor-Annual monitoring fees are estimated to be $5,000 per year. The first year of monitoring has been budgeted in the project costs. CHECKLIST Applicant,has your entity... ❑ maintained current certification under the Certified Local Government program? ❑ signed and dated this application? ❑ signed the form titled: Willingness to Comply with Grant Requirements? ❑ provided the information requested on each page of the application package? ❑ included a public outreach component? ❑ attached maps showing location of project? ❑ attached photographs or clear photocopies showing overall character of properties for survey, inventory,National Register nomination,pre-development and development projects? ❑ attached letters of support from the community and, if needed, property owners? n attached a resolution supporting this proposal(or indicate one has been requested prior to the Alaska Historical Commission meeting to recommend awards)? ❑ explained historic preservation commission involvement in the project, and addressed its role in the review process? ❑ checked your budget for accuracy? Deadline: Applications are due 3:00 pm on October 13, 2023. Only complete, signed, dated applications will be considered. Submit applications and questions to the CLG Program Coordinator: dnr.oha@alaska.gov HPF Grant Application for CLGs 304 Rev:Aug 2023 Continuation Page I Continuation of#2, a. 2. Projects that address the rehabilitation of historic properties and leverage funds and resources. Restoring and preserving defining elements of historic properties and addressing their sustainability are encouraged: As mentioned earlier, to continue with future efforts to rehabilitate the buildings a fire suppression system will be necessary as all other future repairs and upgrades to the property will be required to be completed to current codes. There is woodwork that is hidden behind layers of sheet rock-just waiting to be uncovered and exposed to the public. There are decorative tin ceilings and crown molding hiding up under 1980's drop ceilings that are currently necessary to add the layer of fire protection required to keep the property to current fire rating standards. The 1920's ballroom ceiling and skylight will remain hidden until there is a way to expose it while keeping the property protected. A fire suppression system will support the sustainability of all future restoration projects to the property. The projected costs to install a fire suppression system are approximately$350,000. It will be necessary to find support from local organizations and government agencies to make this project possible. Applying for grant funds to complete the project has created an opportunity not only to leverage funds but also to leverage the abundance of resources various people and organizations have provided. The available recourses such as Doug Capra, Resurrection Bay Historical Society, State Historic Preservation Office,National Park Service,The Seward Library and Museum, Seward Community Foundation, Seward Historic Preservation and The City of Seward have all been outstanding sounding boards that have guided and supported our project. 3. Projects that emphasize the historic preservation of properties, including National Register nominations, while reflecting the American 250 commemoration theme, The Power of Place. Business culture is community. Seward was built on entrepreneurship and still today is recognized by visitors and locals alike as a community that has a deep-rooted business community. Often times,businesspeople are recognized as individuals that provide a service in exchange for making a profit. Likely, Mr. Hawkins and Mr. Brown did come to Seward in hopes of profiting although what mustn't be forgotten or overlooked is that much like every businessperson that creates their start up,they too became embedded in the community. It was then and still is today the local businesses that created the landscape, culture and the town of Seward. Local business has always been about building a better community. Brown&Hawkins buildings represent a side of business that is becoming lost. Seward is losing small, local businesses. Seward still has a unique downtown district with stores such as Urbach's, The Ranting Raven,The Russian Store, Rez Art just to name a few. Two of the Brown&Hawkins storefronts are vacant today as the Darling Family Trust finds it crucial to the community to procure a long-term,year-round tenant that will help preserve and maintain Seward's downtown sense of business community. Entrepreneurs like TW Hawkins particularly had a major role in growing and expanding the state of Alaska from Seward all the way to Talkeetna.Hawkins was a major investor in many settler's dreams,and he took the risk that hopefully some of his investments could potentially pay off. In 1911,the Alaskan Northern Railway did all their banking at the Brown&Hawkins bank. As the railroad and settlers forged north, so did Brown&Hawkins. Brown& Hawkins were major outfitters for Western Alaska as well, shipping provisions to the settlers out of Seward. Brown& Hawkins provided goods from the Vesel Bertha in Cook Inlet to Knik, opened a store in what was soon to become Anchorage, and even supplied settlers as far North as Talkeetna. Brown&Hawkins property represents the pride of entrepreneurship that our country was founded on. Brown& Hawkins has stood tall and remained successful for over 120 years because of the individuals that so passionately have provided the community with their services. The property is a reminder to all Americans, especially now in the day and age of corporate America, the importance to support and patronize local business as it is the local businesspeople that aim to create the town-not just the business. This is The Power of Place. HPF Grant Application for CLGs 302 Rev:Aug 2023 Continuation Page 2 "Promote the social benefits of historic preservation by defining and highlighting the tie between historic preservation and quality of life, increasing awareness of the role historic preservation plays in the visual and tangible expression of cultural identity and showing the importance of historic preservation to community identity and pride." Brown & Hawkins preservation of its history is a grand representation of the benefits of historic preservation efforts. The property is the center piece of not only Seward's Historic Downtown but also of the State's history as well.The Darling Family's endless efforts to restore and maintain the Brown & Hawkins properties provide a quality of life and an awareness around how historic preservation plays a major role in the Seward community and contributes to the pride of downtown that is seen amongst locals and visitors alike. "Strengthen Alaska's Certified Local Government (CLG) program by increasing the number of CLGs." By approving this application,The State Historic Preservation Plan will be increasing the number of CI-Gs awarded. "Connect Alaskans to historic preservation within their communities by encouraging local residents to be stewards for their cultural resources."This project has been an opportunity to connect The Darling Family to their local preservation agencies and instilled an even higher sense of stewardship as the support reciprocated from citizen awareness and local organizations has given the City of Seward an even stronger sense of how beneficial partnering with the State to preserve Seward's history can truly be! HPF Grant Application for CI-Gs 303 Rev:Aug 2023 Sponsored by: VICE CHAIR WARD CITY OF SEWARD,ALASKA HISTORIC PRESERVATION COMMISSION RESOLUTION 2023-003 A RESOLUTION OF THE HISTORIC PRESERVATION COMMISSION OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE BROWN & HAWKINS FIRE SUPPRESSION SYSTEM PROJECT FOR THE HISTORICAL BUILDING LOCATED AT 205, 207 & 209 FOURTH AVENUE AND RECOMMENDING THE CITY MANAGER ACCEPT AND ADMINISTER FEDERAL FUNDING PROVIDED BY THE ALASKA DEPARTMENT OF NATURAL RESOURCES. WHEREAS, Brown & Hawkins was founded in 1903 by TW Hawkins and Charles E. Brown as a mercantile and grocery store that provided settlers with supplies; and WHEREAS, one of Alaska's first banks was operated in Brown & Hawkins which to this day remains preserved within the buildings along with many other stories of not only Seward's history, but Alaska's and the Nation's history as well; and WHEREAS, the recent fire in Lahaina, Hawaii has touched home to Seward as we remember and never forget our own history of when the east side of Fourth Avenue entirely burnt down as the code and construction of our historic buildings leave our history vulnerable; and WHEREAS, Brown & Hawkins is recognized by The United States and the State as it is recorded on the Nation's Register of Historic Places, the State's Register of Historic Places, and Seward's list of Historic Places; and WHEREAS, Brown&Hawkins recently was selected by the National Parks Service for a Historic American Building's Survey (HABS)that will be completed November 2023, and the survey will be recorded in the Nation's Library of Congress; and WHEREAS, Brown and Hawkins hosted President Harding in 1923 as well as President Obama in Sweet Darlings in 2015; and WHEREAS, the City of Seward recognizes the importance and value of partnership opportunities with local organizations and their United States and State governments; and WHEREAS,the Darling Family Trust, owners of Brown& Hawkins,have requested bids to install a fire suppression system at Brown& Hawkins Buildings; and WHEREAS, three contractors have submitted bids to equipped 205, 207 and 209 Fourth Avenue with a fire suppression system; and WHEREAS, the Resurrection Bay Historical Society finds the project to greatly contribute to the preservation of Seward's history and is sponsoring the project; and 304 CITY OF SEWARD,ALASKA RESOLUTION 2023-003 WHEREAS, the total project cost is estimated to be $337,844 of which $50,000 of the project is to be federally funded through The Alaska Department of Natural Resources Certified Local Government Grant(CLG)program; and WHEREAS, to complete the CLG grant application, a City Council and Historic Preservation Commission Resolution must be passed and approved; and WHEREAS,the Historic Preservation Commission supports this project as it protects and preserves Brown & Hawkins and it highly supports the preservation and safety of Seward's history that is important to both The State of Alaska and The United States history.; and NOW, THEREFORE, BE IT RESOLVED by the Historic Preservation Commission, that: Section 1. The Historic Preservation Commission makes the recommendation to the City Council to direct the city manager to authorize and accept federal funds from The Department of Natural Resources for the installation of a fire suppression system located at 205, 207 & 209 Fourth Avenue. Section 2. The Historic Preservation Commission recommends the city finance department be authorized to withhold 2% of all funds received to cover the cost incurred to the City to process the grant funding. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the Historic Preservation Commission this 19th day of October, 2023. THE CITY OF SEWARD,ALASKA Tanguy Libbrecht, Chair AYES: Ward, LeMaster, Walker, Libbrecht NOES: None ABSENT: Mashlan, Benoit, Erickson ABSTAIN: None ATTEST: Kris Peck City Clerk 305 City of Seward,Alaska Planning&Zoning Commission Meeting Minutes October 3, 2023 Volume 8,Page 28 CALL TO ORDER The October 3, 2023 regular meeting of the Seward Planning& Zoning Commission was called to order at 7:00 p.m. by Chair Clare Sullivan. OPENING CEREMONY Commissioner Charbonneau led the Pledge of Allegiance to the flag. ROLL CALL There were present: Clare Sullivan presiding, and Nathaniel Charbonneau Brenan Hornseth Sean Ulman Comprising a quorum of the Commission; and Jason Bickling,Assistant City Manager(Clerk for the meeting) Courtney Bringhurst, Acting Community Development Director Excused—Vanessa Verhey Absent—None Vacancies—Two CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Carol Griswold, inside the city,was opposed to Resolution 2023-015, stating that the plat created non- conformities that were not allowed in Seward Code. Vanessa Verhey, inside the city, spoke in favor of Resolution 2023-015, stating that she was the property owner and that the plat would eliminate various issues with the property including a prominent encroachment. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Charbonneau/Hornseth) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the September 5,2023 Planning and Zoning Commission Meeting Minutes 306 City of Seward,Alaska Planning&Zoning Commission Meeting Minutes October 3, 2023 Volume 8,Page 29 SPECIAL ORDERS,PRESENTATIONS AND REPORTS Proclamations and Awards—None City Administration Report. Acting Community Development Director Courtney Bringhurst gave a verbal report on the status of the Community Development department. Other Reports and Announcements —None Presentations—None PUBLIC HEARINGS Resolutions Requiring Public Hearing—None UNFINISHED BUSINESS Resolution 2023-015: of the Planning and Zoning Commission of the City of Seward, Alaska, Recommending Kenai Peninsula Borough Approval of the Preliminary Replat of Original Townsite of Seward, Shea Replat, Lot 25A, Block 14; Located at 308 Second Ave; Creating Seward Original Townsite, Verhey Replat, Lot 25A-1 and Lot 26A, Block 14 Motion* Approve Resolution 2023-015 *(still on the floor from the August 1, 2023 meeting where the Resolution was automatically tabled for lack of a quorum) Bringhurst provided a brief history of the property and the allowances that had been previously made that created the current situation. She directed the Commission to the As-Built graphic of the two properties to explain how both structures are currently non-conforming due to not meeting the 5ft side yard setbacks. She stated that the current owners of the property have had to deal with the oddities and challenges of the irregular shaped lots, some of which include the encroachments due to the lack of adequate setbacks, and sufficient access to the property from the alley. Bringhurst stated that there was no way these properties could be platted to make the structures conform to all development requirements in code. Both structures would remain nonconforming structures no matter how these parcels were platted. There were configurations that would meet more aspects of code than others, but the goal of this replat was to return the lots to their original standard form to prevent future landowner conflict, reduce and prevent further encroachments,provide adequate and equal access to the alley, and create property boundaries that more accurately reflect how the land is actually being used. Charbonneau said that he supports keeping things in compliance, however, these structures are out of compliance. He stated that he has a problem with the `L-shaped' lot. He lives on one and personally knows the difficulty of them. The platting solutions that meet certain aspects of code all involve creating more"L-shaped" lots. 307 City of Seward,Alaska Planning&Zoning Commission Meeting Minutes October 3, 2023 Volume 8,Page 30 Hornseth said that it was a difficult situation, but he is in favor of keeping it simple and avoiding the"L-shape". Ulman said that he didn't have any questions, but he appreciated all the information that was presented to help him understand the situation more clearly. Sullivan asked if the proposed plat would alleviate or fix any of the non-conformities. She stated that it is the Commission's purpose to adhere to code and stated that it was important to have substantial reasons that a decision that which did not adhere to code was in the public's best interest. Sullivan asked Acting Community Development Director Bringhurst what her perspective as a Planner was for this complex situation. Bringhurst stated that the proposed plat would correct one non-conformity and remove an encroachment on one property but increase a non-conformity on the other property. She stated that no surrounding properties exceeding the lot coverage requirements in code. Bringhurst said that as a Planner she likes to have numbers compute cleanly, but that she also understands the importance of seeing how things are actually functioning on the land. The actual function and use of the properties matched the proposed plat and did not raise any concerns for creating a lot coverage non-conformity. Bringhurst asked the Commissioners to think about what challenges they wanted to avoid in the future on this property. Did the Commission foresee more challenges from a home that exceeded the lot coverage requirement or more challenges from the"L-shaped"lot and existing encroachments and lack of access? Sullivan stated that removing the encroachments and"L-shaped"parcel would improve the use and enhance the value of the property. Sullivan asked if the utilities have been evaluated on these parcels and if that is a current issue or potential issue with the proposed plat. Bringhurst stated that she had spoken with the Electric department, and that they were originally concerned about a utility easement that went through the "L-shaped"parcel. The Electric department thought the proposed plat was creating an "L-shaped"lot and advised against it. Bringhurst informed them that the"L-shaped" lot already existed and that the proposed plat would return to the lots to their original shapes. The Electric department was very supportive of this. Sullivan stated that the issue that stood out the most with this proposed plat was that the house on the current"L-shaped" lot would become non-conforming by exceeding the minimum lot coverage requirement. Hornseth asked for clarification on what the 2003 Shae replat had changed to verify that before the 2003 replat the lots had been the original 30'x100' rectangular lots. Sullivan was concerned about setting a precedence for approving non-conformities to code. Ulman stated that the Commission would only consider another situation like this if it was also already a non-conforming situation, and the owner was trying to correct the non-conformities as much as possible. 308 City of Seward,Alaska Planning&Zoning Commission Meeting Minutes October 3, 2023 Volume 8,Page 31 Motion Passed Yes: Charbonneau, Ulman, Hornseth No: Sullivan NEW BUSINESS Other New Business Items Discuss topic for October 17 work session: Planning&Zoning Commission planned to discuss the Cemetery Management Plan in a joint work session with Parks and Recreation and the City Clerk. Bringhurst stated the edits to the Municipal Lands Inventory and Management Plan had been made and that the updated plan would be presented to the Commission at their next regular meeting in November. INFORMATIONAL ITEMS AND REPORTS A. Reminder of Meetings 1)Work Session on October 17, 2023 at 6:00 pm. 2)Regular Meeting on November 7, 2023 at 7:00 p.m. 3) Commissioner Training Deadline: October 17, 2023 CITIZEN COMMENTS Griswold stated that she did not believe that the house on the"L-shaped" lot was currently non-conforming and that the Commission should provide more substantial findings for their decision to go against the requirements established in City Code. Verhey thanked the Commission for their approval. Griswold stated that the issues that were created with the Shae replat should not be what was being discussed. COMMISSION AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS Charbonneau thanked the administration for putting together all the information for the meeting. Ulman also thanked the administration and the audience for the information. Sullivan acknowledged that it was a tough decision, and that she appreciated hearing both viewpoints on the subject. Sullivan thanked administration and thanked Jason Bickling for clerking. 309 City of Seward,Alaska Planning&Zoning Commission Meeting Minutes October 3, 2023 Volume 8,Page 32 ADJOURNMENT The meeting was adjourned at 7:37 p.m. Jason Bickling Clare Sullivan Assistant City Manager(Clerk) Chair (City Seal) 310 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes October 4, 2023 Volume 4,Page 131 CALL TO ORDER The October 4, 2023, regular meeting of the Port and Commerce Advisory Board was called to order at 12:00 p.m. by Chair Bruce Jaffa. OPENING CEREMONY Harbormaster Norm Regis led the Pledge of Allegiance to the flag. ROLL CALL There were present: Bruce Jaffa,presiding; and Lynda Paquette Benjamin Smith Fred Woelkers Dwayne Atwood Tom Miller comprising a quorum of the Board; and Jason Bickling, Assistant City Manager Norm Regis, Harbormaster Jodi Kurtz, Deputy City Clerk Excused—None Absent—None Vacant One CITIZEN COMMENTS -None APPROVAL OF AGENDA AND CONSENT AGENDA Motion Approval of Agenda and Consent Agenda Paquette pointed out two typos on the agenda in regard to spelling and the meeting time. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of September 6, 2023 PACAB Regular Meeting Minutes SPECIAL ORDERS,PRESENTATIONS AND REPORTS Administration Report 311 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes October 4, 2023 Volume 4,Page 132 Assistant City Manager Jason Bickling summarized his written report in the packet which included updates on the Heat Loop Ad Hoc Committee. Jaffa noted that the Heat Loop Ad Hoc Committee would need to be renewed for 2024 by city council. PACAB discussed rescheduling their next regular work session to October 25,2023 due to the Alaska Day Holiday. Harbormaster Norm Regis summarized his written report in the packet. He noted there would be an upcoming presentation on trawling and the negative impacts of scraping the ocean floor. Police Chief Alan Nickell provided an update on the Seward Community Jail situation and the new process of transporting detainees to other facilities. Other Reports and Announcements Alaska Railroad Report. Port Operations Manager Dwayne Atwood summarized from his written report in the packet. Atwood noted the first cruise ship next year would arrive on April 22, 2024. Paquette wished the Chamber of Commerce would collaborate with local businesses to accommodate the cruise ship schedule by being open during the shoulder seasons of April and October. Jaffa asked if a Chamber of Commerce representative could provide regular reports to PACAB as they had done in the past. NEW BUSINESS Other New Business Discuss Seward Boat Harbor Plan 2023 Regis reviewed the harbor plan and noted the plan was valuable at conferences and for grants applicants. PACAB discussed how the harbor tracks boat launch activity. INFORMATIONAL ITEMS AND REPORTS— Reminder of Meetings - Regular PACAB Meeting on November 1, 2023. 312 City of Seward,Alaska Port and Commerce Advisory Board Meeting Minutes October 4, 2023 Volume 4,Page 133 BOARD AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Miller said the harbor looked amazing and noted how much it has been improved. Woelkers noted he was involved in litigation in regard to the election that just took place. He wondered if it would affect his status as a PACAB member. Atwood agreed that more could be done to accommodate visitors during the shoulder seasons in April and October. Smith agreed that the Seward had a first-rate boat harbor and congratulated the harbor staff for their efforts. Regis recalled his trip to Ketchikan last week and said the businesses there opened when the cruise ships arrived and locked up as soon as they left. Regis noted the Seward Boat Harbor had made a lot of progress over the years to become what it is today. Paquette noted the Northeast Boat Launch Ramp was very nice. She was happy to see a new PACAB applicant and hoped for a full board at the next meeting. Jaffa said city harbor department had a great staff and complimented Regis on his leadership. On another topic, Jaffa was disappointed by the overall disjointed operation of the road construction this summer on the Seward Highway. ADJOURNMENT The meeting was adjourned at 12:54 p.m. Jodi Kurtz Bruce Jaffa Deputy City Clerk Chair (City Seal) 313 DocuSign Envelope ID:351 E357C-2CD3-489F-B4E0-8FCBFE640490 Alaska Small Business Development Center ALASIG SBDC L4r BUSINESS EN-M-RPRisr.INSTITUTE October 24, 2023 City of Seward 410 Adams St Seward, AK 99664 Dear Mayor McClure, City Council, and City Staff, This letter serves as our quarterly report for the period July 1 to September 30, 2023. During the quarter, the Alaska SBDC received the results from the national SBDC accreditation, with KellyAnn Cavaretta and the Seward office receiving exemplary marks and noted as a model that should be replicated across the country. This past year, 76% of Seward clients chose to meet in-person with KellyAnn, indicating a strong preference from local business owners and entrepreneurs to have this service in their community. Here is a summary of deliverables to the Seward community during the quarter(year): Client Hours: 133.2 (480.5) Jobs Supported: 140 (220) Total Clients: 40 (72) Capital Infusion: $530,000 ($2,604,584) New Businesses Started or Bought: 0 (6) Client Surveys: 100%positive (100%positive) This report provides lists of the top advising topics and top industries obtaining technical assistance from the Alaska SBDC in Seward. Assistance to entrepreneurs looking to purchase established businesses was the top topic for the second straight quarter, followed by assistance to start-ups. In regards to industries working with the SBDC, accommodation remained atop the list for the third consecutive quarter, followed by food services and retailers. Topics Industries 1. Buy/Sell Business: 38.2 hrs (25%) 1. Accommodation: 45.2 hrs (34%) 2. Start-up Assistance: 31.3 hrs (23%) 2. Food Services: 30.3 hrs (23%) 3. Financing/Capital: 29.9 hrs (22%) 3. Retailers: 23.4 hrs (18%) 4. General Management: 28.7 hrs (21%) 4. Entertainment: 17.7 hrs (13%) 5. Business Planning: 3.0 hrs (2%) 5. Transportation: 9.7 hrs (7%) We would like to thank the City of Seward for their support of the Seward Business Advisor position. KellyAnn has continued her strong performance with a 100% satisfaction rating on client surveys for the seventh consecutive quarter, a testament to the quality of advising she provides entrepreneurs in Seward. Please do not hesitate to contact us if you have any questions. Sincerely, Do/1cuSigned by: �s�99'L gg��g�7gg- olls�l L�11G1 4D�... Executive Director Alaska SBDC _ 000WOMM :D 9i7)786-7201 ALASKA SBDC 190199508 Anchorage - Fairbanks - Juneau - Kenai Peninsula - Ketchikan - Mat-Su Valley November 2023 November 2023 December 2023 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 1 2 5 6 7 8 91011 3 4 5 6 7 8 9 12 13 14 15 16 17 18 10 11 12 13 14 15 16 19 20 21 22 23 24 25 17 18 19 20 21 2223 26 27 28 29 30 24 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Oct 29 30 31 Nov 1 2 3 4 12:00pm PACAB Mtq 5 6 7 8 9 10 11 7:00pm P&Z 6:00pm Holiday- Holiday- eeting Rescheduled- Veteran's Day eteran's Day HPC Work Observed 7:00pm Rescheduled HPC Regular Meeting 12 13 14 15 16 17 18 5:30pm CC Work 2:00pm Heat 12:00pm PACAB Session Loop Ad Hoc WS (Electric Mtg(Seward Gateway Hotel 7:00pm CC Mtg (1115 4th Ave, (Council Seward,AK Chambers) 99664)) 19 20 21 22 23 24 25 6:00pm P&Z Holiday- nj EEHoliclay-City Work Session (Council 26 27 28 29 30 Dec 2 5:30pm CC Work Session (Youth360 7:00pm CC Mtg Council Calendar 1 11/8/2023 2:04 PM 315 December 2023 SuMDecember2023 oTuWeTh4 o TuWe Th Fr Sa SuMuWe Th Fr Sa 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 1011 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Nov 26 27 28 29 30 Dec 1 2 3 4 (7:001pm 6 7 8 9 P&Z 12:OOpm PACAB 10 11 12 13 14 15 16 7:OOpm CC Mtg 2:OOpm Heat (Council Loop Ad Hoc Mtg(Seward Gateway Hotel (1115 4th Ave, Seward,AK 99664)) 17 18 19 20 21 22 23 6:OOpm P&Z 12:OOpm PACAB Work Session WS (Council CbambeLs- 24 25 26 27 28 29 30 Holiday- Holiday- 7:OOpm CC Mtg Christmas E— Christmas (Chambers) 31 Jan 1, 24 2 3 4 5 6 Council Calendar 2 11/8/2023 2:04 PM 316 January 2024 February 2024 January 2024 SuM Tho TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Dec 31 Jan 1, 24 2 3 4 5 6 12:OOpm PACAB Mtq 7 8 9 10 11 12 13 7:OOpm CC Mtg 7:OOpm P&Z 6:OOpm HPC (Council Meeting ork Session (Rescheduled 7:OOpm HPC Regular Meeting (Council 14 15 16 17 18 19 20 12:OOpm PACAB WS 21 22 23 24 25 26 27 7:OOpm CC Mtg 6:OOpm P&Z (Cham from 1/16/24) Work Session (Rescheduled 28 29 30 31 Feb 1 2 3 Council Calendar 3 11/8/2023 2:04 PM 317