HomeMy WebLinkAbout04242006 City Council Packet
The City of Seward, Alaska
City Council Meeting
April 24, 2006
7;30 p.m.
Council Chambers
Vanta Shafer
Mayor
Term Expires 2007
I.
2.
3,
4,
Call to order
Pledge of allegIance
Rollcall
Special orders, presentations and reports
Willard E. Dunham
Vice Mayor
Term Expires 2006
A.
Proclamations and Awards
Robert Valdatta
Council Member
Term Expires 2007
1. Super Saturday Proclamation.. ...... ... ...Pg. 4
2. Bike Rodeo Proclamation................. .Pg. 5
3. National Historic Preservation Week.. ...Pg. 6
4. Irv Campbell Memoriam................. ..Pg. 7
5. Plaque presented to Michaela Walker-Hettinger for
excellent leadership on the Historic Preservation
Commission.
Roben Thomas
Council Member
Term Expires 2007
Steve Schafer
Council Member
Term Expires 2007
B. Borough Assembly Report
C. City Manager's Report
D. City Attorney Report
E. Chamber of Commerce Report
F. Seward Planning & Zoning Commission Report
G. Other Reports, Announcements and Presentations
Dorene M. Lorenz
Council Member
Term Expires 2006
Jean Bardarson
Council Member
Tenu Expires 2006
1. Cruise ship initiative by Gershon Cohen.. ...Pg. 8
2. Use of the middle school for alternative education
programs in Seward by Shannon Atkinson.
3. Infonnation on the Sewage Lagoon Treatment
Facility by W.C. Casey.
4. City's powerpoint presentation answering public
requests about the contracts and tenus of agreement
with tIlC Alaska Sealife Center.
Clark Corbridge
City Manager
Jean Lewis
City Clerk
Brad Meyen
Cheryl Brooking
f:ityAttomey
5.
Citizens' 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
2 minutes per speaker and 30 minutes total time for this
agenda item.}
Ci~y of Seward, Alaska
April 24, 2006
Council Agenda
Page 1
Council Agenda
Page 2
City of Seward, Alaska
April 24. 2006
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*3. Resolution 2006-43, approving the City of Seward's Calendar Year 2006 Revised
State Legislative Priorities to add Alutiiq Pride Shellfish Hatchery......... ...Pg. 110
*2. Resolution 2006-41, appropriating $165,150 to Providence Seward Medical and Care
Center for the purchase of capital equipment................................... ...Pg. 105
'" 1. Resolution 2006-40. amending the participation agreement with the Public
Employees Retirement System (PERS), to exclude seasonal employees and the Chief
of Police from participation........................,............................... ..Pg. 102
B. Resolutions
A. Ordinances for Introduction
9. New business
8. Unfinished business - None
2. Resolution 2006-42. entering into a Fifth Amendment to the Agreement For The
Financing, Lease, Construction, Operation And Maintenance Of The Alaska Sealife Center
Between The City And Seward Association For The Advancement Of Marine Science To
Lease A Portion Of The Alaska Tidelands Survey 174, shown as Attached Exhibit dated
October 20, 1998, located south and seaward afCity Owned Tract 2A, Water Front Tract,
which is currently leased by SAAMS.".. .............. ........................ ......... ....Pg. 53
1. Resolution 2006-32. authorizing the lease ofland to the Seward Racing Lions Club of
the real property described as 14534028, Block 5 Fourth Of July Creek Sub. Seward
Marine Industrial Center; 14534044, Fourth Of July Creek Sub. Seward Marine Induslrial
Ceuter Sub. Unsubdivided Remainder Of Block 6; 14534042 Fourth Of July Creek Sub.
Seward Marine Industrial Center Addn. No.1 Lot 2 Block 6; 14534043 Fourth Of July
Creek Sub. Seward Marine Industrial Center Addn. No.1 Lot 3 Block 6; Aod 14534029
Fourth OfJuly Creek Sub. Seward Marine Industrial Center Lot I Block 6.. ...... ..Pg.15
7. Public Hearings
A. Resolutions requiring a public hearing
6. Approval of agenda and consent agenda [Approval o/Consent Agenda passes all routine
items indicated by asterisk (*). Consent Agenda items are not considered separately unless
a council member so requests. In the event of such a request, the item is returned to the
Regular Agenda]
*4. Resolution 2006-44. supporting the "Save Our Past, Secure Our Future" as the
Historic Preservation Commission Project for National Historic Preservation Month
during the month ofMay2006....... ...................... .................. ..... .....Pg.114
5. Resolution 2006-45. authorizing the City Manager to enter into an agreement with
Tryck Nyman Hayes, Incorporated ("TNH") for change order # 4 to the east harbor
expansion, inner harbor phase I contract for an amount not to exceed ($362,108.00)
and appropriating funds............................. ................................. ..Pg, 118
*6. Resolution 2006-46, accepting a grant from the office ofthe Governor ofthe State of
Alaska for the support of the Alutiiq Pride Shellfish Hatchery, authorizing the City
Manager to enter into an agreement with the State of Alaska for the grant funds,
authorizing the City Manager to enter into an agreement with Qutekcak Native Tribe
to pass through the grant funds and appropriating the funds........... ........ ...Pg. 130
C. Other New Business Items
* 1. Approve the April 1 0, 2006 regular city council meeting minutes.. .. . ... .. ... . .Pg. 166
2. Discussion on raising the minimum purchase amount as an exception for sales in the
rock quarry. (Dunham)
3. Seek direction to enforce the existing agreement with SAAMS.
4. Seek direction on Seward Ship's Drydock and their maintenance and operating
agreement.
5. Discussion of city council assistance with funding banners and pawprints from the
Harbor to Downtown, on 4th Avenue, through the promotions account........ .Pg.173
10. Informational items and reports (No action required)
A. Providence Seward Medical Center financials for March 2006................. ..Pg. 176
11. Council comments
12. Citizens' comments [5 minutes per individual- Each individual has one opportunity to
speak.]
13. Council and administration response to citizens' comment
14. Executive Session
A. Go into executive session for negotiating site acquisition contract for the
Long-Term Care Facility.
15. Adjournment
City of Seward. Alaska
April 24, 2006
Council Agenda
Page 3
Vanta Shafer, Mayor
THE CITY OF SEWARD, ALASKA
Dated this 24th day of April, 2006.
in the City of Seward, and urge all citizens, organizations, agencies and churches to
join together to pick up trash and clean up our streets, parks and the yards of
neighborhoods.
Super Saturday Cleau Up Day
NOW THEREFORE, I. Vanta Shafer, Mayor of the City of Seward, Alaska,
do hereby proclaim Saturday, May 6, 2006 to he
WHEREAS, the community of Seward takes great town pride in the arumal
spring clean up of our home.
WHEREAS, this special event armually yields hundreds of bags and pounds of
trash which would otherwise blow around and contribute to trash and health problems;
and
WHF.REAS, the City of Seward hosts an evening celebration to award prizes
to groups, families, churches, service organizations and soloists; and
WHEREAS, donations and prizes from most local businesses provide plenty
of awards for a large number of categories to encourage a big turn out of volunteers of
all ages; and
WHEREAS, through the partnerships of two key companies; Alaska Pacific
Environmental Services Alaska, dba Alaska Waste sanitation and Three Bears, the
clean up activities have professional support and the promise of a hot dog picnic party
for all volunteers; and
WHERI!:AS, the City of Seward Parks and Recreation Department has
traditionally organi:.::;ed a community wide, volunteer clean up day each spring; and
PROCLAMATION
PROCLAMATION
hereas, the City of Seward Parks and Recreation Department organizes a youth safety,
ike Rodeo each spring; and
hereas, through the partnerships of key agencies: Terry's Tires and Lube, Providence
eward Medical Center, Seward Police Department, Seward Bike Shop, Boy Scouts of
merica, Stylin' Stitches, SeaView Community Services, Seward Fire Department and
laska Safe Kids, this event includes professional support and the promise of cool bike
rizes for the first 75 participants; and
hereas, kids can purchase a brand new, youth-size helmet for only $5 or an adult-size
elmet for only $10; and
hereas, the following stations will be hosted for kids and their bikes: bike maintenance
heck; safety education; bike registration; helmet fitting; free bike safety pri2es; Kid ID &
mgerprinting and the favorite, the obstacle course; and
hereas, the Seward Police Department will again host their Open House to provide yout
nd adults an opportunity to meet and greet peace officers in an informal setting and enjoy
hotdog; and
hereas, we expect to serve over 100 kids and impact their safety habits in the future.
ow Therefore, I, Vanta Shafer, Mayor of the City of Seward, Alaska do hereby proclaim
Saturday, May 13, 2006 to be "Terry's Tires Bike Rodeo Day" in the City of Seward, and
rge all citizens to participate in the Police Department Open House and Bike Rodeo at Cit
all.
Dated this 24th day of April, 2006
The City of Seward, Alaska
5
Vanta Shafer, Mayor
City of Seward, Alaska
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(b) For each sailing of a commercial passenger vessel providing overnight
accommodations, the commissioner shall identify the first five ports of call in the state and the
commerce.
* Section 1. AS 43 is amended by adding a new chapter to read: Chapter 52. Excise Tax
on Travel Aboard Commercial Passenger Vessels.
Sec. 43.52.010. Levy of excise tax on overnight accommodations on commercial
passenger vessels. There is imposed an excise tax on travel on commercial passenger vessels
providing overnight accommodations in the state's marine waters. In order to enhance services and
necessary infrastructure directly related to the growing cruiseship industry, an equitable and
reasonable fee levied on passengers traveling on large commercial passenger vessels sailing in the
territorial waters of Alaska is necessary.
Sec. 43.52.020. Rate of tax, The tax imposed by AS 43.52.010 - 43.52.095 is levied at a
rate of $46 a passenger per voyage.
Sec. 43.52.030. Liability for payment of tax. A passenger traveling on a commercial
passenger vessel providing overnight accommodations in state marine water is liable for the tax
imposed by AS 43.52.010--43. 52.095. The tax shall be collected and is due and payable to the
department
(1) by the person who provides travel aboard a commercial vessel for
which the tax is payable; and
(2) in the manner and at the times required by the department by
regulation.
Sec. 43.52.040. Disposition of receipts. (a) The proceeds from the tax on travel on
commercial passenger vessels providing overnight accommodations in the state's marine water
shall be deposited in a special "Commercial Vessel Passenger Tax Account" in the general fund.
The legislature may appropriate money from this account for the purposes described in (b) and (c)
of this section and for state-owned port and harbor facilities and other services to properly provide
for vessel or water craft visits and to enhance the safety and eniciency of interstate and foreign
Be it enacted by the People of the State of Alaska:
FOR AN ACT PERTAINING TO CRUISESHIP ACTIVITIES and RELATED TO SHIP
VESSEL OPERATIONS TAKING PLACE IN THE MARINE WATERS OF THE STATE
OF ALASKA
C!\';', el\w:df6 1,'1 ~elF)~'N\ ('c,htv\)
A BILL BY INITIATIVE
number of passengers on board the vessel at each port of call. Subject to appropriation by the
legislature, the commissioner shall distribute to each port of call $5 per passenger of the tax
revenue collected from the tax levied under this chapter. If the port of call is a city located within a
borough not otherwise unified with the borough, the commissioner shall distribute $2.50 per
passenger to the city and $2.50 to the borough. Each port of call receiving funds under this section
shall use the funds in a manner calculated to improve port and harbor facilities and other services
to properly provide for vessel or water craft visits and to enhance the safety and efficiency of
interstate and foreign commerce.
(c) A "Regional Cruise Ship Impact Fund" consisting of25% of the proceeds from the tax
on travel aboard commercial passenger vessels providing overnight accommodations in the state's
marine water shall be established as sub-account of the funds established in (a), above, and
deposited in the general fund. Subject to appropriation by the legislature and regulations adopted
by the Department of Revenue, the commissioner shall distribute funds to municipalities or other
governmental entities within the Prince William Sound Region, Southeast Alaska or any other
distinctive region impacted by cruise ship related tourism activities but not entitled to receive funds
based on port of call visitation as allowed by (b), above, provided that any funds used from this
account shall be used to provide services and infrastructure directly related to passenger vessel or
water craft visits or to enhance the safety and efficiency of interstate and foreign commerce related
to vessel or water craft activities.
Sec. 43.52.050, Administration. (aJ The department shall
(1) administer this chapter; and
(2) collect, supervise. and enforce the collection of taxes due under this chapter and
penalties as provided in AS 43.05.
(b) The department may adopt regulations necessary for the administration of this chapter.
Sec. 43.52.060. Local levies. Any municipality, whether home rule or general law. that
receives passenger ship fee funds under this chapter may not impose a similar form of tax on travel
on commercial passenger vessels engaged in activities involving overnight accommodations for
passengers in state marine waters. Any form of tax on travel on commercial passenger vessels
engaged in activities involving overnight accommodations for passengers in state marine waters
enacted by a municipality, whether home rule or general law, prior to the effective date of this
legislation shall expire one year after enactment of this law if that municipality elects to receive
funds under this chapter.
Sec. 43.52.095. Definitions. In this chapter, (1) "commercial passenger vessell! means a
boat or vessel that is used in the common carriage of passengers in commerce; "commercial
passenger vessel" does not include
(A) vessels with fewer than 250 berths or other overnight
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* Sec. 3. AS 43.20 is amended to repeal Section 3, chapter 35, Session Law of Alaska
(1998), and reenacted to read as follows:
Sec. 43.20.021(a). Interna. Revenne Code adopted by referenee. (a) Sections 26 U.S.C.
_ 1399 and 6001 - 7872 (Internal Revenue Code), as amended, are adopted by reference as a part of
this chapter. These portions of the Internal Revenue Code have full force and effect under this
chapter unless excepted to or modified by other provisions of this chapter.
* Sec. 2. AS 05, is amended by adding a new chapter to read: Chapter 16. Garnes of
Chance and Contests of Skill on Ships Operating on Waters Within the Jurisdiction of
Alaska.
Sec. AS 05.16.010. Gambling activities aboard commercial vessels purportedly
authorized by federal law. This chapter applies to the use of playing cards, dice, roulette wheels,
coin-operated instruments or machines, or other objects or instruments used, designed, or intended
primarily for gaming or gambling used in the waters under the jurisdiction of the State of Alaska
on a voyage described in 15 U.S.c. Section I 175(c)(2), and to any other gambling activities, except
those conducted under AS 05.15, in the state.
Sec. AS 05.16.020. Tax on gambling activities not operated under AS 05.15. There is
imposed on the operator of a gaming or gambling activities in the state other than those conducted
under AS 01.15 a
lax of 33% of the adjusted gross income from those activities. "Adjusted gross income" means
gross income less prizes awarded and federal and municipal taxes paid or owed on the income.
The tax shall be collected and is due and payable to the department ofrevenue in the manner and at
the times required by the department of revenue.
Sec. 05.16.030. Disposition of receipts. (a) The proceeds ITom the tax on gambling
operations aboard commercial passenger vessels in the state's marine water shall be deposited in a
special sub-account within the "Commercial Vessel Passenger Tax Account" in the general fund.
accommodations lor passengers;
(B) noncommercial vessels, warships, and vessels operated by the state, the United States,
or a foreign govenunent;
(2) "marine water ofthe state" and "state marine water" have the
meaning given to "waters" in AS 46.03.900, except that they include only marine waters.
(3) "passenger" means a person whom a common carrier has contracted to carry from one
place to another.
(4) "voyage" means any trip or itinerary lasting more than 72 hours.
. Sec. 4. AS 46.03.462 is repealed and re-enacted as follows: Terms and conditions of
discharge permits. (a) An owner or operator may not discharge any treated sewage, graywater, or
other wastewater from a large commercial passenger vessel into the marine waters of the state
unless the owner or operator obtains a permit under AS 46.03.100, which shall comply with the
terms and conditions of vessel discharge requirements specified in (b) ofthis section.
(b) The minimum standard terms and conditions for all discharge pennits authorized under
this provision require that the owner or operator:
(1) may not discharge untreated sewage, treated sewage, graywater, or other wastewaters in
a maIlllcr that violates any applicable effluent limits or standards under state or federal law,
including Alaska Water Quality Standards governing pollution at the point of discharge;
(2) shall maintain records and provide the reports required under AS 46.03.465(a);
(3) shall collect and test samples as required under AS 46.03.465(b) and (d) and provide thc
reports with respect those samples required by AS 46.03.475(c);
(4) shall report discharges in accordance with AS 46.03.475(a);
(5) shall allow the department access to the vessel at the time samples are taken under AS
46.03.465 for purposes of taking the samples or for purposes of verifying the integrity of the
sampling process; and
(6) shall submit records, notices, and reports to the department in accordance with AS
46.03.475 (b), (d), and (e).
* Sec. 5. AS 46.03.463 is amended to read as follows:
See, 46.03.463(d) is repealed.
Sec. 46.03.463(e) is repealed and reenacted to read: An owner or operator may not
discharge any treated sewage, graywater, or other wastewater from a large commercial passenger
vessel into the marine waters of the state unless the owner or operator obtains a permit under AS
46.03.100 and AS 46.03.462, and provided that the vessel is not in an area where the discharge of
treated sewage. graywater or other wastewaters is otherwise prohibited.
Sec. 46.03.463(g) is repealed.
* See, 6. AS 46.03.465 repealed and reenacted to read as follows: Sec. 46.03.465.
Information-gathering requirements. (a) The owner or operator of a commercial passenger
ves;sel shall maintain daily records related to the period of operation while in the State, detailing
the dates, times, and locations, and the volumes and flow rates of any discharges of sewage,
graywatcr, or other waster into the marine waters of the State, provide electronic copies of such
records on a monthly basis to the department no later than 5 days after eaeh calendar month of
operation in State waters.
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*Sec.7. AS 46.03 is amended to include new provisions as follows:
Sec. 46.03.476. Ocean Rangers. (a) An owner or operator of a large commercial
passenger vessel entering the marine waters of the state is required to have a marine engineer
licensed by the United States Coast Guard hired or retained by the department on board the vessel to
act as an independent observer for the purpose of monitoring state and federal requirements
pertaining to marine discharge and pollution requirements and to insure that passengers, crew and
residents at ports are protected from improper sanitation, health and safety practices.
(b) The licensed marine engineer shall monitor, observe and record data and information
related to the engineering, sanitation and health related operations of the vessel, including but not
limited to registration, reporting, record keeping and discharge functions required by state and
federal law .
(c) Any information recorded or gathered by the licensed marine engineer shall be promptly
conveyed to the Alaska Department of Environmental Conservation and the United State Coast
Guard on a form or in a manner approved by the Commissioner of Environmental Conservation.
The Commissioner may share information gathered with other state and federal agencies.
(b) while a commercial passenger vessel is present in the marine waters of the State, the
owner or operator of the vessel shall provide an hourly report of the vessel's location based on
Global Positioning System teclmology and collect routine samples of the vessel's treated sewage,
graywater, and other wastewaters being discharged into marine waters of the State with a sampling
technique approved by the department.
(c) while a commercial passenger vessel is present in the marine waters of the State, the
Department, or an independent contractor retained by the Department, may collect additional
samples ofthe vessel's treated sewage. graywater, and other wastewaters being discharged into the
marine waters of the State.
(d) the owner or operator of a vessel required to collect samples under (b) of this section
shall ensure that all sampling techniques and frequency of sampling events are approved by the
department in a manner sufficient to ensure demonstration of compliance with all discharge
requirements under AS 46.03.462.
(e) the owner or operator of a commercial passenger vessel shall pay for all reporting,
sampling and testing of samples under this section.
(f) if the owner or operator of a commercial passenger vessel has, when complying with
another state of federal law that requires substantially equivalent information required under (a),
(b), or (d) of this section, the owner or operator shall be considered to be in compliance with that
subsection so long as the information is also provided to the department.
46.03.481. Citizens suits. (a) Any citizen of the State of Alaska may commence a civil
action (1) against an owner or operator of a large passenger vessel alleged to have violated any
provision of this chapter, or (2) against the department where there is an alleged failure to perform
any act or duty under this chapter which is not discretionary. No civil action may be commenced
under this section, however, prior to 45 days after the plaintiff has provided written notice of the
intent to sue to the Attorney General of Alaska.
(b) Subject to appropriation, as necessary, up to 50% and not less than 25% of any fines,
penalties or other funds recovered as a result of enforcement of this chapter shall be paid to the
person or entity, other than the defendant, providing information sufficient to commence an
investigation and enforcement of this chapter under this provision.
'Sec. 8. AS 46.03.480 is amended as follows:
Sec. 46.03.480 is amended by adding a new section to read:
(d) An additional fee in the amount of $4.00 per berth, is imposed on all large commercial
passenger vessels, other than vessels operated by the state, for the purpose of operating the Ocean
Ranger program established in AS 46.03.476; said program shall be subject to legislative
appropriation.
See, 46.03,480(d) shall be repealed and reenacted as 46.03.480(0).
'See. 9. AS 46.03.760 is amended as follows:
Sec. AS 46.03.760(e) is amended to read:
(e) A person who falsifies a registration or report required by AS 46.03.460 or
46.03.475 or who violates or causes or permits to be violated a provision of AS 46.03.250 _
46.03.314,46.03.460 - 46.03.490, AS 46.14, or a regulation, a lawful order of the department, or a
permit, approval, or acceptance, or term or condition of a pennit, approval, or acceptance issued
under AS 46.03.250 - 46.03.314, 46.03.460 -46.03.490, or AS 46.14 is liable, in a civil action, to
the state for a sum to be assessed by the court of not less than $5000 nor more than $100,000 for
the initial violation, nor more than $10,000 for each day after that on which the violation continues,
and that shall reflect, when applicable,
(1) reasonable compensation in the nature of liquidated damages for any adverse
environmental effects caused by the violation, that shall be detennined by the court according to
the toxicity, degradability and dispersal characteristics of the substance discharged, the sensitivity
of the receiving environment, and the degree to which the discharge degrades existing
environmental quality; for a violation relating to AS 46.14, the court, in making its determination
under this paragraph, shall also consider the degrce to which the discharge causes hann to persons
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* Sec. I!. Effective Date. This Act takes effect 90 days after enactment.
* Sec.II. Severability. It is the intention of the people of Alaska that any portion of this
legislation that is declared unlawful shall be stricken in a manner that preserves the remaining
portion of the remaining legislation to the maximum extent possible.
* Sec. 10. AS 45.50.474 is repealed and reenacted to read as follows:
Sec. 45.50.474. Required disclosures in promotions and shore side sales OD board
cruise ships. (a) A person may not conduct a promotion on board a emise ship that mentions or
features a business in a state port that has paid something of value for the purpose of having the
business mentioned, fcatured or otherwise promoted, unless the person conducting the promotion
clearly and fully discloses orally and in all written materials used in the promotion that the featured
businesses have paid to be included in the promotion. All such written notice of disclosure shall be
in a type not less than 14-point typeface and in a contrasting color calculated to draw attention to
the disclosure.
(b) A person or other entity aboard a cruise ship conducting or making a sale of tours,
flightseeing operations or other shore-side activities to be delivered by a vendor or other entity at a
future port of call shall disclose, both orally and in writing, the amount of commission or
percentage of the total sale retained or returned to the person making the sale. The person or entity
aboard a cruise ship making or attempting to make a sale of services or goods provided by a shore-
side vendor shall disclose the address and telephone number of the shore side vendor if asked by a
consumer. All such written notice of disclosure shall be in a type not less than 14-point typeface
and in a contrasting color calculated to draw attention to the disclosure.
(c) Each violation of this section constitutes an unfair trade practice under AS 45.50.471,
and shall result in a penalty of not more than $100 for each violation. In this section, "cruise ship"
means a ship that operates at least 48 hours in length for ticketed passengers, provides overnight
accommodations and meals for at least 250 passengers, is operated by an authorized cruise ship
operator, and is certified under the International Convention for the Safety of Life at Sea or
otherwise certified by the United States Coast Guard.
or property; this paragraph may not be construed to limit lhe right of parties other than the state to
recover for personal injuries or damage to their property;
(2) reasonable costs incurred by the state in detection, investigation, and attempted
correction of lhe violation;
(3) the economic savings realized by the person in not complying with the requirement for
which a violation is charged; and
(4) the need for an enhanced civil penalty to deter future noncompliance.
Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE LEASE OF LAND TO THE SEWARD
RACING LIONS CLUB OF THE REAL PROPERTY DESCRIBED AS
14534028, BLOCK 5 FOURTH OF JULY CREEK SUB. SEWARD MARINE
INDUSTRIAL CENTER; 14534044, FOURTH OF JULY CREEK SUB.
SEWARD MARINE INDUSTRIAL CENTER SUB. UNSUBDIVIDED
REMAINDER OF BLOCK 6; 14534042 FOURTH OF JULY CREEK SUB.
SEWARD MARINE INDUSTRIAL CENTER ADDN. NO.1 LOT 2 BLOCK
6; 14534043 FOURTH OF JULY CREEK SUB. SEWARD MARINE
INDUSTRIAL CENTER ADDN. NO.1 LOT 3 BLOCK 6; AND 14534029
FOURTH OF JULY CREEK SUB. SEWARD MARINE INDUSTRIAL
CENTER LOT 1 BLOCK 6
WHEREAS, Seward City Code Section 7.05.120 authorizes the City Council to dispose of
real property by negotiation, public auction or sealed bid; and
WHEREAS, the Seward Racing Lions Club submitted a request to lease land from the City
to use as a racetrack; and
WHEREAS, the Seward Planning and Zoning Commission approved the use of the land as a
racetrack as an unlisted use, subject to conditions stated in its Resolution 2005-13 adopted May 4,
2005; and
WHEREAS, the City finds that it is in the public interest to encourage year round
recreational activities; and
WHEREAS, the Seward Racing Lions Club plans to provide a service to the community that
will encourage year round visitors; and
WHEREAS, the City finds that it is in the public interest to lease the land to the Seward
Racing Lions Club for less than fair market value and pursuant to the terms of a Lease Agreement in
substantial form as presented at this meeting.
NOW, THEREFORE, BE IT RESOL YED BY THE CITY COUNCIL OF TilE CITY
OF SEWARD, ALASKA, that:
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(City Seal)
Jean Lewis, CMC
City Clerk
ATTEST:
AYES:
NOES:
ABSENT:
ABSTAIN:
Vanta Shafer, Mayor
THE CITY OF SEWARD, ALASKA
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska this 24. day
of April 2006.
Section 3. This resolution shall take effect 30 days after passage and posting.
Section 2. The form of Lease Agreement presented at this meeting is hereby approved and
the City Manager is hereby authorized to execute the five year Lease Agreement in substantial [mm
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 1. The recitals are hereby incorporated by reference. The City Council finds that it
is in the public interest to enter into a five year lease agreement with the Seward Racing Lions Club
by sole source negotiation pursuant to the essential terms and conditions in the fonn of lease
presented at this meeting.
CITY OF SEWARD, ALASKA
RESOLUTION 2006-32
Council Agenda Statement
Meeting Date:
April 24, 2006
Clark Corbridge, City Manager iJlJ. !.f-frl-fJ(,
.
Through:
Agenda Item:
Entering into a five year lease agreement with the
Seward Racing Lions Club for land as described below
in the Fourth of July Creek Subdivision, Seward Marine
Industrial Center
BACKGROUND & JUSTIFICATION:
The Seward Racing Lions Club asked the City for permission to use a portion of City-owned land to
operate a racetrack for certain motorized vehicles. The property is described as:
De:icription afLeased Land. The Leased Land is located in the City of Seward. Alaska. The
Leased Land is described as follows:
14534028, Block 5, Fourth of July Creek Subdivision, Seward Marine Industrial
Center (containing approximately 4.28 acres)
14534044, unsubdivided remainder of Block 6, Fourth of July Creek Subdivision,
Seward Marine Industrial Center (containing approximately 6.08 acres)
14534042, Lot 2 Block 6, Fourth ofJuly Creek Subdivision, Seward Marine Industrial
Center Addu. No.1 (containing approximately 1.07 acres)
14534043, Lot 3 Block 6, Fourth ofJuly Creek Subdivision, Seward Marine Industrial
Center Addn. No.1 (containing approximately .60 acres)
14534029, Lot I Block 6, Fourth of July Creek Subdivision, Seward Marine Industrial
Center (containing approximately .23 acres)
All within the Seward Recording District, Third Judicial District, State of Alaska,
coIIectively the "Leased Land. "
The Leased Land contains approximately 12.26 acres and is generally depicted on
the attached Exhibit A, which is incorporated herein by reference.
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Council approve Resolution 2006~ authorizing the City Manager to enter into a lease in
substantial form as presented at this meeting, with Seward Racing Lions Club for land in the
Fourth of July Creek Subdivision to operate a race track.
RECOMMENDATION:
This Lease is for a term of five years commencing May 24, 2006. The annual lease rental is
$1.00.
Approved by Finance Department - - - - ---. - ,.. -.--- 3
FISCAL NOTE:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
CONSISTENCY CHECKLIST:
The Seward Plamring and Zoning Commission passed its Resolution 2005-13 on May 4, 2005,
authorizing the operation of a racetrack as an lUllisted use, subject to specified conditions. Exhibit B
to the form of the Lease presented at this meeting incorporates the conditions stated in Resolution
2005-13. The City recognizes that a race track fulfills a service in the community and supports
leasing the property for the purpose ofa racetrack to be operated by the Seward Racing Lions Club.
Resolution 2006-
Page Two
LEASE AGREEMENT
between
CITY OF SEWARD, ALASKA
and
SEWARD RACING LIONS CLUB
#68816
Effective Date; r
1
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ZJ
ARTICLE 1- LEASED LAND.................................................................................................... 1
1.1 Description of Leased Land.................................................................................... 1
1.2 Covenant o/Quiet Enjoyment; Warranty Cl.fTitle ...................................................2
1.3 Survey of Leased Land............................................................................................ 2
1.4 Property Accepted................................ ........................................... ........................ 2
1.5 Permits ........................................... ......................................................................... 2
1.6 Plat/ing............................ ........... ........................... ............................................. ..... 3
ARTICLE 2 _ LEASE TERM...................................................................................................... 3
2.1 Lease Term .............................................................................................................. 3
2.2 Lease Subject to Referendum .................................................................................. 4
ARTICLE 3................................................................................................................................... 4
3.1 Use of Leased Land................................................................................................. 4
3.2 Obligations of LESSEE........................................................................................... 4
3.3 No Preferential Rights to Use Public Facilities ..................................................... 4
3.4 Adequacy of Public Facilities ................................................................................. 4
3.5 Tariffs and Other Service Fees ...............................................................................5
3.6 Time for Payment of Utilities and Taxes................................................................. 5
3.7 Other Uses .............................................................................................................. 5
ARTICLE 4 - UTILITIES AND RIGHTS OF ACCESS.......................................................... 5
4.1 Utilities.................................................................................................................... 5
4.2 Third-Party Improvements ......................... .... ......................................................... 6
4.3 Easements .. ......................................... .................................................................... 6
ARTICLE 5 _ CONSTRUCTION BY LESSEE......................................................................... 7
5.1 Improvements on Leased Land ...............................................................................7
5.2 City Review a/Construction ...................................................................................8
ARTICLE 6 - RETURN OF LEASED LAND/SITE CONDITIONS ...................................... 8
6.1 Return of Leased Land in Original Condilion........................................................ 8
6.2 Return of Leased Land in Different Condition ....................................................... 9
ARTICLE 7 - FORCE MAJEURE ............................................................................................. 9
ARTICLE 8 - LESSEE'S ACfS OF DEFAULT....................................................................... 9
ARTICLE 9 - REMEDIES FOR DEFAULT BY LESSEE .................................................... 10
ARTICLE 10 _ TITLE TO IMPROVEMENTS INSTALLED BY LESSEE ....................... 12
10.1 Real Property Improvements ..................... ........................................................... 12
10.2 Personal Property................................................................................................. 12
ARTICLE 11 - ASSIGNMENT OR SUBLEASE .................................................................... 12
11.1 Assignment of Lease or Sub/easing..................................................,.................... 12
11.2 AssIgnment of Lease for Security .......................................................................... 13
11.3 AssIgnment to Affiliate .......................................................................................... 14
ARTICLE 12 - LESSEE'S DUTY TO DEFENDIINDEMNIFY ............................................ 14
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE i OF 30-
TABLE OF CONTENTS
ARTICLE 13 - CITY'S DUTY TO DEFENDfINDEMNIFY ................................................. 14
ARTICLE 14 -INSURANCE .................................................................................................... 14
14.1 Minimum Insurance Requirements ............................................................."........ 14
14.2 Subrogation Rights Waived...................................................................................15
ARTICLE 15 - CONDEMNATION.......................................................................................... 16
ARTICLE 16 - ARBITRATION ...............................................................................................17
16.1 Arbitration ............................................................................................................ 17
ARTICLE 17 - MAINTENANCE AND REPAIRS ................................................................. 18
17.1 Normal Maintenance ............................................................................................ 18
17.2 Safety Issues .......................................................................................................... 18
17.3 Cost of Repairs...................................................................................................... 19
ARTICLE 18 - ENVIRONMENTAL CONCERNS................................................................ 19
18.1 Hazardous Materials ............................................................................................ 19
18.2 Permits and Reparting .......................................................................................... 22
ARTICLE 19 - ESTOPPEL CERTIFICATES........................................................................ 22
ARTICLE 20 - CONDITIONS AND COVENANTS .............................................................. 22
ARTICLE 21 - NO WAIVER OF BREACH ........................................................................... 23
ARTICLE 22 - TIME OF THE ESSENCE .............................................................................. 23
ARTICLE 23 - COMPUTATION OF TIME........................................................................... 23
ARTICLE 24 - SUCCESSORS IN INTEREST .......................................................................23
ARTICLE 25 - ENTIRE AGREEMENT ................................................................................. 23
ARTICLE 26 - GOVERNING LAW........................................................................................ 23
ARTICLE 27 - PARTIAL INY ALIDITy................................................................................. 24
ARTICLE 28 - RELATIONSHIP OF PARTIES .................................................................... 24
ARTICLE 29 - INTERPRET A TION........................................................................................ 24
ARTICLE 30 - CAPTIONS ....................................................................................................... 24
ARTICLE 32 - AMENDMENT ................................................................................................. 24
ARTICLE 32 - NOTICES.......................................................................................................... 24
ARTICLE 33 - FIRE PROTECTION....................................................................................... 25
EXlHBIT A: Leased Land
EXHIBIT B: Use and Development of the Leased Land
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.p AGE ii OF 30-
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All within thc Seward Recording District, Third Judicial District, State of Alaska,
collectively thc "Leased Land."
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 1 OF 30-
14534029, Lot I Block6, Fourth ofJulyCreek Subdivision, Scward Marine Industrial
Center (containing approximately .23 acres)
14534043, Lot 3 Block 6, Fourth ofJuly Creek Subdivision, Seward Marine Industrial
Center Addn. No. I (containing approximately .60 acres)
14534042, Lot 2 Block 6, Fourth of July Creek Subdivision, Seward Marine Industrial
Center Addn. No. I (containing approximately 1.07 acres)
14534044, unsubdivided remainder of Block 6, Fourth of July Creek Subdivision,
Seward Marine Industrial Center (containing approximately 6.08 acres)
14534028, Block 5, Fourth of July Creek Subdivision, Seward Marine Industrial
Center (containing approximately 4.28 acres)
1.1 Description ojLeosed Land. The Leased Land is located in the City of Seward, Alaska. The
Leased Land is described as follows:
ARTICLE I - LEASED LAND
NOW THEREFORE, for and in consideration of the mutual promises and covenants
hereinafter contained, the partics hereto agree as follows:
WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire
burden of compliance with present Of future environmental regulations or controls with respect to
LESSEE's operations on the Leased Land during the lease term.
WHEREAS, the City Council of CITY has determined that continued lease of the Leased
Land (as defined below) to LESSEE for the purposes described herein would be in the public
interest; and
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 SEWARD RACING
LIONS CLUB #68816 (the "LESSEE"), whose mailing address is P.O. Box , Scward Alaska
99664.
LEASE AGREEMENT
The Leased Land contains approximately 12.26 acres and is generally depleted on
the attached Exhibit A, which is incorporated herein by reference.
1.2 Covenant o/Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date
hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat
by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that;
a) LESSEE shall have the quiet enjoymcnt and posscssion ofthc Leased Land for the
full term of this LEASE;
b) CITY is unaware of any prior conflicting use of the Leased Land that would
adversely affect LESSEE's intended use of the subject parcel.
1.3 Survey of Leased Land. If not completed prior to execution of this LEASE. within ninety
(90) days from the date of this LEASE, LESSEE, at its sole cost, will cause the Leased Land
to be surveyed and replatted by a land surveyor registered in the State of Alaska. A copy of
the drawing and description of the Leased Land based upon this survey shall be attached to
this LEASE as Exhibit B and shall be incorporated herein by reference. In such event, the
description of the Leased Land in Exhibit B shall supersede the dcscription in Exhibit A, and
shall be considered the correct description of the Leased Land for all purposes under this
LEASE. LESSEE shall provide CITY a copy of any and all surveys within ten (10) days of
LESSEE's receipt of any and all surveys. CITY shall have the right to comment upon any
and all surveys. but the exercise of this right shall not imply any obligation to do so or any
obligation to do so in any particular way. If CITY objects to the surveyor's conclusions in the
survey, CITY may give written notiee to LESSEE ofCITY's objection within thirty (30) days
of receipt of the survey. CITY shall then engage a second land surveyor registered in the
State of Alaska at CITY's expense to make a second survey ofthe Leased Land. CITY shall
provide LESSEE a copy of the second survey within ten (10) days of CITY's receipt of the
second survey. Unless CITY and LESSEE agree which survey is acceptable, the acceptable
survey shall be determined in accordance with the arbitration provisions contained in Article
16 of this LEASE.
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 representations or
warranties of CITY (other than the representations in Section 1.2 hereol), or agents of CITY,
as to the actual physical condition or characteristics thereof and the legal description or
depiction of the Leased Land in Section 1.1 or Exhibit A hereto.
1.5 Permits. LESSEE~ at its sole cost, shall obtain all pennits necessary to the coru.1ruction and
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 2 OF 30-
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 3 OF 30-
2.1 Lease Term. The term of this LEASE (the "Lease Term") sball be in accordance with CITY's
authorization Resolution No. 2006-~ (the "Resolution"). The Lease Term shall
commence on the date this LEASE is sigoed by CITY and that date shall be the effective dale
of this LEASE (the "Effective Date"). Subject to Section 2.2 below, the Lease Term shall
run for five years from the Effective Date. The parties agree to review the terms and
conditions of the lease annually and to revise or amend the lease as necessary at these times.
The parties further agree to begin working on lease renewal within thirty (30) days after the
end ofthe fourth (41h) year of the lease.
ARTICLE 2 - LEASE TERM
1.6 Platting. In the event CITY elects to replat, CITY agrees to includc the Leased Land in such
replat in accordance with the description prepared by LESSEE uuder Section 1.3 herein. If
LESSEE requests a replat ofthe 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 sigo 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 govenunental authorities as a condition to
filing the plat of the Leased Land or the plat of CITY -<>wued real property adjacent to the
Leased Land.
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
therefore an application for conditional use permits, zoning and re-zoning, tentative and final
tract approval, or precise plan approval that may be required tor 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. Anny 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 ofFish and Game, and
the Alaska Department of Environmental Conservation.
2.2 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the
Charter and Code of CITY this LEASE may be voided by referendum. LESSEE agrees that
if the Resolution approving this LEASE is the subject of a referendum petition filed with the
Clerk of CITY, LESSEE ,hall have no right, under this LEASE unless and until the
Resolution is approved by the voters ofthc City of Seward, and LESSEE shall not be entitled
to any damages or any other relief against CITY in the event the Resolution is not so
approved.
ARTICLE 3 - USE OF LEASED LAND
3.1 Use ofLea.fed Land. CITY has limited land available for lease. Use of the Leased Land by
IJESSEE has been determined by the City Council of CITY to be in the public interest.
3.2 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 tWs LEASE.
b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous
Materials on the Leased Land except as permitted in Article 18 of this LEASE.
c) LESSEE shall not use the Leased Land in any manner or construct any facilities
thereon which would inhibit the use of adjacent or other lands.
d) LESSEE shall operate a racetrack on the Leased Land in accordance with Resolution
No. 2005-13 of the Seward Planning and Zoning Commission and Exhibit B hereto.
Any changes to this site require CITY approval, through the City Manager, prior to
additional construction. LESSEE's failure to obtain CITY approval of any changes to
the site development plan or LESSEE1s failure to install the improvements according
to the site development plan shall be a LESSEE Act of Default under this LEASE.
3.3 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, roles 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.
3.4 Adequacy ofPuhlic Facilities. CITY makes no representations or warranties as to the fitness
of any particular part or the whole of CITY's public facilities for the uses intended by
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 4 OF 30-
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4.1 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 aod requirements, aod the tariffs of the
affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate
aod assist the LESSEE, through consultation aod review, in LESSEE's planning aod
engineering of those improvements. All utilities will be located and sized in accordance to
CITY's Master Plao for thc area leased. All such construction shall be in compliaoce with all
applicable building, mechanical aod fire codes. Utilities constructed by the LESSEE within
the public right-of-ways or within public utility easements will nonnally be accepted aod
maintained by CITY or utility companies may be used to serve other customers of LESSEE's
without payment offces 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 over sizing shall be bomc
by CITY or other utility compaoy. Such costs shall be limited to the supplier's cost of the
additional fittings, equipment, direct labor, and equipment costs to complete the installation.
The costs of over sizing pipe or electrical conduit shall be limited to the difference between
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 5 OF 30-
ARTICLE 4 . UTILITIES AND RIGHTS OF ACCESS
3.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other aod
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 aoy
reason.
3.6 Timefor Payment of Utilities and Taxes. LESSEE will pay for utilities aod taxes related to
operations on the Leased Land and LESSEE's interest in this LEASE and improvements
thereon, if any, before such obligations become delinquent; provided that LESSEE may, in
good faith and before such delinquency, contest any such charge or assessment.
3.5 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.
LESSEE, aod LESSEE has inspected those facilities aod has satisfied itself that thc facilities
are sufficient for the intended uses by LESSEE. CITY makes no representations or
warranties of any nature with respect to the commercial practicability Of accuracy of any
information provided by CITY.
the suppliers 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,
investmcnt, or costs incurred by LESSEE with respect to any required permits for
construction or operation off .ESSEE'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.
4.2 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 docwnents as are appropriate,
necessary, or required to impose upon the Leased Land in accordance with the terms of this
LEASE covenants, conditions and restrictions providing for the granting of uses of the
Leased Land, or any part thereof, the establishment of party walls, the establishment of
mutual and reciprocal parking rights or rights of ingress or egress, or other like matters
(herein called "third-party improvements"), all of which are for the purpose of the orderly
development of the Leased Land as a commercial unit subject, however, to the conditions
that;
a) All such matters shall be limited to the Lease Term and shall terminate upon
tennination of this LEASE for whatever reason.
b) Any such matters of a pennanent nature extending beyond the Lease Term shall not
be granted without the prior written approval of CITY. In any of the foregoing
instances referred to in this Section, CITY shall be without expense therefore, and the
cost and expense thereof shall be borne solely by 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 thc payment of any compensation to LESSEE.
4.3 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 docwnents from time to time and throughout the Lease Term
as may be appropriate, necessary, or required by the seveml governmental agencies
(including the City of Seward), public utilities and otherusers 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
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 6 OF 30-
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f) Any general contractor employcd by LESSEE or its sublessees shall be appropriately
bonded by use of perfonnance 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
TIIOUSAND DOLLARS ($50,000.00), LESSEE shall provide CITY, if no
performance and labor and material bonds are provided by LESSEE, any necessary
assuranceS or guarantees that the contemplated work will be performed by the general
contractor or by LESSEE. Iu the evcnt 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
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.p AGE 7 OF 30-
e) LESSEE is solely responsible for resurveying and locating improvements on the
Leased Land in such manner not to violate building setback requirements or encroach
into rights-of-ways or easements. On completion of any improvements, LESSEE
shall provide CITY a copy of an as-built survey depicting the improvements as
completed on the Leased Land.
d) 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 at
least thirty (30) days prior to commencement of construction.
c) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens.
b) The cost of any construction, reconstruction. demolition, or of any changes,
alterations or improvements, shall be borne and paid for by LESSEE.
a) LESSEE shall cause to be operated on the Leased Land a racelmck by September
30,2007,
5.1 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:
ARTICLE 5 - CONSTRUCTION BY LESSEE
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 nccd not be exclusive to LESSEE.
10.06.990(2)1 or Alaska limited liability company in which LESSEE maintains a
substantja] membership interest, a performance bond shall be required when the cost
ofthe work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000).
g) CITY may. as contemplated by Alaska Statutes, give notice of non-responsibility for
any improvements constructed or effected by LESSEE on the Leased Land.
h) LESSEE shall comply with all federal, state and local statutes and regulations with
respect to such construction, including but not limited to all applicable building,
mechanical, and fire codes.
5.2 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 nor any obligation to do so in a particular way. LESSEE shall construct
the facility in accordance with final design specifications approved by CITY. CITY's
representatives may monitor the work and shall have access to the site at all reasonable times.
LESSEE shall be solely responsible for completing all improvements according to LESSEE's
plans and specifications and shall bear all risk, responsibility, and liability for properly
surveying the Leased Land before construction and to place all improvements on the Leased
Land without encroaching upon any land, easements, rights-of-way, or setback requirements.
LESSEE shall obtain the usual and customary performance guarantees from its contractors.
and CITY shall be named as an additional insured. The City shall evaluate and comment on
all submitted plans and changes within 30 days date stamped with a completed set of plans
satisfactory to the Building Department.
ARTICLE 6 - RETURN OF LEASED LAND/SITE CONDmONS
6.1 Return of Leased Land in Originai 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
nonnal, 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.
IAffiliale meaus II person that directly or indirectly through one or more intermediaries cOlItrols, or is controlled by, or is under common
control with, a corporation subject tv the Aluska Corpomtion Code.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 8 OF 30-
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8.4 Violation by LESSEE of aoy laws or regulations of the United States, or of the State of
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 9 OF 30-
8.3 The making by LESSEE of an assigmnent for the benefit of creditors, the filing of a petition
in baokruptcy 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 lUldismissed for a petiod of six (6) months from the date of
commencement thereof.
8.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on
its part to be observed or performed lUlder this LEASE for a period of thirty (30) days after
written notice specifying such failure, requesting that it be remedied, and stating that it is a
notice of default, bas 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 lUltil the default is corrected.
8.1 Failure by LESSEE to pay promptly when due, and in no event later thao twenty (20) days
from the due date thereof, the rent required to be paid lUlder this LEASE.
Each of the following shall be a "LESSEE Act of Default" lUlderthis LEASE aod the tenns
"acts of default" and "default" shall mean, whenever they are used in this LEASE, anyone or more of
the following events:
ARTICLE 8 - LESSEE'S ACTS OF DEFAULT
In the event either LESSEE or CITY is delayed from performance of any of its obligations
under this LEASE due to acts of nature, acts of the enemies of the United States of America,
sabotage, blockade, insurrection. riot, epidemic, fire, flood. explosion, earthquake/tsunami. civil
disturbance, or war. the time period wherein such performance is to occur shall be extended by that
amount of time necessary to compensate for the delay.
ARTICLE 7 - FORCE MAJEURE
6.2 Return of Leased Land in Different Condition. Notwithstanding the provisions of Section
7.1 above, upon termination of this LEASE for any reason LESSEE may return the Leased
Land in a re-contoured or graded clean, safe, and stable condition different from its original
condition provided CITY grants written approval of LESSEE's plans for development of the
Leased Land contours, including its plans for material extraction and final grade.
Alaska, or any conditions of any pennits 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 CaIUlot bc 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. Furthennore, 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 dctennined 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.
8.5 Failure by LESSEE to operate a racetrack on the Leased Land and place the facilities in
service by September 30, 2007.
8.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the pnblic
rights of way clear.
ARTICLE 9 - 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:
9.1 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 commerciallyreasonahle disposal.
9.2 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 uoder Section 9.1 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.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUR
MAY 2006
-PAGE 11 OF 30-
9.6 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 anyone or more of the rights and remedies provided for in this LEASE
or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude
the simultaneous or later exercise by CITY of any or all other rights or remedies provided for
in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise.
9.5 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.
9.4 If LESSEE does not immediately surrender possession of the Leased Land after tennination
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.
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.
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.
d) Recover an amount to be due immediately on breach equal to the unpaid rent for the
entire remaining term of this LEASE.
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;
b) Collect any and all rents due or to become due from subtenants or other occupants of
the Leased Land;
a) Declare this LEASE terminated;
9.3 In addition to the above, CITY may;
9.7 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 10 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE
10.1 Real Property Improvements. All improvements constructed by LESSEE on the Leased
Land or on easements to or from the same, such as buildings, warehouses, conveyor systems,
ditches, sewer lines, water lines, dikes or berms and similar improvements. shall become the
property of CITY upon termination of this LEASE for any reason; provided, however, that
CITY may require LESSEE to remove any improvements designated by CITY and without
cost to CITY.
10.2 Personal Property. LESSEE. upon termination of this LEASE for any reason other than
default by LESSEE, 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 11 - ASSIGNMENT OR SUBLEASE
11.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE baa been
dctermined 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 baa granted the LEASE in reliaoce upon the individual character and
financial capability of LESSEE. Therefore, LESSEE shal1 not assign or sublease this LEASE
without CITY's prior written consent. in CITY's sole discretion. LESSEE may sublease a
portion of the Leased Land or buildings or improvements located thereon only with CITY's
prior written consent, which consent shall be granted if:
a) The use of the Leased Land by the proposed sublessee is compatible with the use of
adjacent lands;
b) The proposed use is a permitted use under the then existing zoning regulations and
comprehensive land use plan;
c) LESSEE has made a written request to sublease a portion of the Leased Laod or
buildings or improvements located thereon and provided CITY with a copy of the
sublease agreement. The sublease agreement shall state that it is subject to and
subordinate to this LEASE and any amendments thereto;
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LTONS CLUB
MAY 2006
.PAGE 12 OF 30-
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b) If the default for which notice is given is a breach of Section 8.3, CITY shall not
exercise any of the remedies afforded to it under Article 9 above so long as LESSEE
or Lender remains in possession of the T .eased Land and satisfies LESSEE's
obligations under the terms of this LEASE. Upon foreclosure or other assertion of its
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.p AGE 13 OF 30-
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
1l.2 Assignment of Lease for Security. Notwithsmnding Section 11.1 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 C'Lender") for
development of or operations on the Leased Land, provided that Lender shall be subject to all
obligations ofLESSEE under the terms of this LEASE upon foreeloslD'C. CITY shall furnish
Lender, at the address provided to CITY by Lender in writing, with notice of any default or
breach of LESSEE uoder 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 speciJYing 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;
provid~
g) The sublessee has a credit-worthiness demonstrated to be equal to or better than
LESSEE and has operating experience suitable to manage any facilities located on
the Leased Land.
f) The sublessee assumes and agrees in writing to pay and perform all of the obligations
of LESSEE hereunder including, without limitation, Article 18 - Environmental
Concerns; and
c) LESSEE's full faith and credit shall remain obligated under this LEASE as though the
sublease had not taken place;
d) The sublessee shall agree to defend, indemniJY and hold harmless the CITY, its
officials, employees, and agents, from any and all liability or claims for damages,
including personal injuries, death and property damage arising out of or resulting
from sublessee's use of the Leased Land by themselves, their agents, contractors,
guests or the public, except for damages arising from the sole negligence or willful
acts or omissions of CITY, its officials, employees, agents, or contractors;
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.
11.3 Assignment to Affiliate. Notwithstanding Section 11.1 above, LESSEE may assign this
LEASE to an affiliate of LESSEE as that term is defmed 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 12. LESSEE'S DUTY TO DEFENDIINDEMNIFY
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 sublcssees, 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 13 . CITY'S DUTY TO DEFENDIINDEMNIFY
CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims
for damages, including personal injuries, death and property damage arising from the sole negligence
or willful acts or omissions of CITY, its officials, employees, agents, or contractors.
ARTICLE 14. INSURANCE
14.1 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 JiahiJity insmance with limits ofliability of
not less tban ONE MILLION DOLLARS ($1,000,000) for all injuries and/or deaths resulting
to anyone person and ONE MILLION DOLLARS ($1,000,000) limit from anyone
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 ONE
2 Affiliate means a person that directly or indirectly through one or mOIl; intermediaries controls, or ill controlled by, or is under common
COIItTOI with,aoorporation subj<x:t 10 the Alaska Corporation Code.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA WId SEWARD RACING LIONS CLUB
MAY 2006
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14.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY,
its elected and appointed officials, employees and volWlteers and others working on behalf of
CITY from any and all liability or responsibility to LESSEE or anyone claiming through or
under LESSEE by way of subrogation or otherwise, for any loss of any kind (including
damage to property caused by fIre or any other casualty), even if such loss shall have been
cam:ed by the fault or negligence ofthe 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 m:e (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 there under except as against CITY (including its
elected and appointed officials, employees and volWlteers and others working on behalf of
CITY) during the time ofLESSEE's occupancy or use. LESSEE agrees that its policies of
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 15 OF 30-
AU 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 32 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 arc subjcct 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 dcfend and indemnifY CITY for claims
related to this LEASE or the Leased Land.
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 prdCtices, 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 minimwn insurance requirements should be increased. CITY shall
notifY LESSEE of any required increase in insurance coverage.
LESSEE shall also maintain workers' compensation insurance as required Wlder Alaska law.
MILLION DOLLARS ($1,000,000) is also required.
insurance will include such a clause or endorsement.
ARTICLE 15 - CONDEMNATION
If ail 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 ncgotiate 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.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 16 OF 30-
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
~PAGE 17 OF 30-
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 Jess than five arbitrators
obtained from the presiding Superior Court Judge or other appropriate judicial officer
in Aochorage, 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 (h) such
legal experience include 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.
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.
a) Disputes between the parties with respect to the performance of this LEASE that
cannot be resolved by the parties, shall be submitted to an independent arbitrator for a
settlement pursuant to the provisions of the Alaska Unifonn Arbitration Act (AS
09.43.010 et. sea.), as it now exists or may hereafter be amended from time to time,
and judgment on the award may be entered in any Superior Court in the State of
Alaska Notwithstanding the foregoing, arbitration shall not be applicable to claims
or disputes involving a requested remedy having a value of more than Fifty Thousand
Dollars and No/lOOs ($50,000) (exclusive of interest and costs). All demands for
arbitrdtion and all answering statements thereto that include any claim must contain a
statement that the total sum or value in controversy, as alleged by the party making
such demand or answering statement, is not more than Fifty Thousand Dollars and
NolIOOs ($50,000.) The arbitrator will not have jurisdiction, power, or authority to
consider or make findings (except to deny jurisdiction) concerning any claim,
counterclaim, dispute or other matter in question where the amount in controversy of
any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars
and Noll OOs ($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.
16.1 Arbitration.
ARTICLE 16 - ARBITRATION
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 advauce 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 Alac;ka law, or entry of a decision that is not based on substantial
evidence in the record, shall be additional grounds for modifying or vacating an
arbitration decision.
ARTICLE 17 - MAINTENANCE AND REPAIRS
17.1 Normal Maintenance. During the entire term of this LEASE aud every extension hereof, if
auy, LESSEE shall, at LESSEE's sole cost, risk aud 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 othcrs by grading, filling
or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole
expense and risk unless LESSEE agrees, in advance and in writing, to share such expense
and risk. LESSEE shall maintain in fIrst class condition at all times all fire, pollution and
other protective equipment, ifany are placed on Leased Land.
17.2 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 aud LESSEE
shall promptly within thirty (30) days of receipt of snch 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 aud perform such work in accordauce therewith
LEASE AGREEMENT between CITY OF SEWARD. ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 18 OF 3D-
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LEASE AGREEMENT between CITY OF SEW ARO, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 19 OF 30-
b) Release oj CrFY. Aoy othcr provision of this LEASE to the contrary notwith-
standing, LESSEE releases CITY from any and all claims, demands, penalties, fines,
judgments. liabilities, settlements, damages, costs or expenses (including, without
limitation, attorney's fees, court costs, litigation expenses, and consultant and expert
fees) arising 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 CITytg sole negligence or intentional
misconduct. This release includes, without limitation, any and all costs incurred due
to any investigation of the Leased Land Of any cleanup, removal or restoration
mandated by a federal, state or local agency or political subdivision or by law or
regulation.
a) Condition oj 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.
18.1 Hazardous Materials.
ARTICLE 18 - ENVIRONMENTAL CONCERNS
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 there
from, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse
CITY for such work at the option of CITY.
17.3 Cost o.rRepairs. Should LESSEE dispute the necessity of any maintenance work as being
necessary or advisable or reasonable to prolect 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 therefore. In deciding
whether repairs requested by CITY or required by an engineering report arc necessary, the
arbitration panel is to give primary consideration to the safety and welfare of the Seward port
facilities and the citizens of Scward in light ofthe highest standards in the industry.
at LESSEE's cost, risk and expense.
c) Use a/Hazardous Materials on the Site.
i) LESSEE shall not cause or pennit 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
Laud.
ii) Any Hazardous Material permitted on the Leased Land as provided in this
paragraph, and all containers therefore, shall be used, kept, stored and
disposed of in a manner that complies with all Environmental Laws or other
laws or regulations applicable to such Haz.ardous Material.
iii) LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked
or emitted, any material into the atmosphere, ground, ground water, sewer
system or any body of water, if such material (as reasonably determined by
the City, or any governmental authority) does or may, pollute or contaminate
the same, or may adversely affect the (a) health, welfare or safety of persons,
whether located on the Leased Land or elsewhere; or (b) condition, use or
enjoyment of the Leased Land or any other area or personal property.
iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses
related to the use, storage and disposal of Hazardous Material kept or brought
on the Leased Land by LESSEE, its authorized representatives and invitees,
and LESSEE shall give immediate notice to CITY of any violation or
potential violation of the provisions of this subparagraph.
d) Indemnifica/ion of CITY. Any other provision of this LEASE to the contrary
notwithstanding, LESSEE shall defend, indelll11ifY and hold CITY hannless 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 OT 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 with
the exception that LESSEE shall not be held responsible for any such
Hazardous Material which the parties agree originated from or was
proximately caused by an outside source;
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARn RACING LIONS CLUB
MAY 2006
~p AGE 20 0.F 30-
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g) Errvironmental 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, Of 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 of1976, the Comprehensive Environmental RCb"ponse, Compensation
and Liability Act of 1980, the Clean Water Act, and the Superfund Amcndments and
Reauthorization Act of t 986.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 21 OF 30-
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.
e) Operator. For all purposes, LESSEE shall he deemed the operator on the Leased
Land.
iv) Any noncompliance with 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 LESSEErs predecessors in interest, employees, agents,
invitccs, contractors, subcontractors, authorized representatives, subtenants or
any other persons. The provisions of this subparagraph shall be in addition to
any other obligations and liabilities LESSEE may have to CITY at law or
equity and shall survive the transactions contemplated herein and shall
survive the termination of this LEASE.
iii) Any lawsuit brought Of threatened, settlement reached or government order
relating to such Hazardous Material or any use of the Leased Land; and/or
ii) Auy 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;
18.2 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 provide CITY with copies of all correspondence and notice, including
copies, of all reports between LESSEE and any state, federal or local government or
agency regulating Hazardous Material which relates to LESSEE's operations on or
use of the Leased Land.
ARTICLE 19 - ESTOPPEL CERTIFICATES
Either party shall at any time and from time to time upon not less than ten (10) doys' 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 dotes to which the rent and other
charges have been paid in advance.
ARTICLE 20 - CONDITIONS AND COVENANTS
All the provisions of this LEASE shall be construed to be "conditions" as wen as
lIcovenants," as though the words specifically expressing or imparting covenants and conditions were
used in each separate provision.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 22 OF 30-
<;3
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 23 OF 30-
This LEASE shall he governed by, construed and enforced in accordance with the laws of the
State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of
Ordinances of CITY in effect on the date of this LEASE, and as they may bc hereafter amended,
including without limitation, Chapter 7.05 of the Seward City Code.
ARTICLE 26 - GOVERNING LAW
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 25 - ENTIRE AGREEMENT
Each and all of the terms, covenants and conditions in this LEASE shall inw-e to the benefit
of and shall he binding upon the successors in interest of CITY and LESSEE.
ARTICLE 24 - SUCCESSORS IN INTEREST
The time in which any act provided by this I.EASE 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 23 - COMPUTATION OF TIME
Time is of the essence of this LEASE and of each provision.
ARTICLE 22 - TIME OF THE ESSENCE
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 broach or of such tenns. covenants or
conditions. No waiver of any breach shall affect or alter this LEASE, but each and every tenn.
covenant and condition of this LEASE shall continue in full force and effect with respect to any other
then existing or subsequent breach.
ARTICLE 21 - NO WAIVER OF BREACH
ARTICLE 27 - PARTIAL INVALIDITY
If any provision of this LEASE is held by a cow1 of competent jurisdiction to be invalid, void
or unenforceable, the remainder ufthe provisions shall remain in fulI force and effect and shall in no
way be affected, impaired or invalidated.
ARTICLE 28 - RELATIONSIDP 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 ofjoint 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 29 - 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 30 - 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 31 - AMENDMENT
This LEASE is not subject to amendment except in writing executed by both parties hereto.
ARTICLE 32 - NOTICES
All notices, demands or requests from one party to another shall be delivered in person or be
sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to
such other persons and addresses as either party may designate. Notice by mail shall be deemed to
have been given at the time of mailing.
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 24 OF 30-
,;::;
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 25 OF 30-
LESSEE shall at its sole cost, risk and expense provide fire protection to its operations on the
Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those
risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of
fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S
operation. The parties agree that with the mpid 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 years.
ARTICLE 33 - FIRE PROTECTION
Each party shall have the right, from time to time, to designate a different address by notice
given in conformity with this Article.
SEWARD RACING LIONS CLUB #68816
~o~~
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All notices, demands or requests from CITY to LESSEE shal1 be given to LESSEE at the
fol1owing address;
City Manager
CITY Of SEWARD
PO Box 167
Seward, Alaska 99664
Al1 notices, demands and requests from LESSEE to CITY shall be given to CITY at the
following address:
IN WITNESS WHEREOF, the parties hereto have set their hauds aud seals the dates
herein set forth.
CITY: LESSEE:
CITY OF SEWARD
By: Clark Corbridge
Its: City Manager
Date:
SEWARD RACING LIONS CLUB
~8~
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Its: : '
Date; 1/2 0,/ /.;.[
ATTEST;
Jeau Lewis, CMC
City Clerk
STATE OF ALASKA )
) ss.
THIRD mDICIAL DISTRICT )
THIS IS TO CERTIFY that on dils _ day of , 2006, before me, the
undersigned, a Nola1y Public in aud for the State of Alaska, personally appeared Clark Corbridge,
known to me and to me known to be the City Manager for the City of Seward, Alaska, and
authorized to execute documents on its behalf, and is the individual named in and who executed the
foregoing docwnent on behalf of the City of Seward for the uses and purposes therein set forth.
WIlNESS my hand aud notarial seal the day aud year first hereinabove written.
Notary Public in aud for Alaska
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 26 OF 30-
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 27 OF 30-
Notary Publie in and for Alaska
My Commission Expires:
WITNESS my hand and notarial seal the day and year first hereinabove written.
THIS IS TO CERTIFY that on this _ day of , 2006, before me, a
Notary Public in and for Alaska, personally appearcd , to
me known to be the person who executed the foregoing instrument on behalf of the Seward Racing
Lions Club #68816. ShelHe acknowledged to me that she/he executed the same freely and
voluntarily on behalf of said entity. Shc/hc stated to me under oath that shelhe is the
of the said entity, has been authorized by the of the said
entity to execute said instrument on its behalf, and has full power and authority to execute the same.
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
My Commission Expires:,
EXIDBIT A
LEASED LAND
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 28 OF 30-
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
.PAGE 28 OF 30-
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EXInBIT B
The Lease is subject to City approval of the foHowing plans.
1. Lessee shall prepare and deliver the plans within 60 days of the Effective Date to
the City Manager, or his deIegee, for review and consent. The administration shall have 60 days
to review each plan and provide revisions or consent.
a) An evaluation of noise impacts on properties located within one mile of the
racetrack. The evaluation shall identify the projected or actual dBA levels. If the
projected or actual noise level exceeds the standards set in the Seward City Code
noise ordinance, Section 9.25.020, the evaluation shall identify mitigation measures.
To help control litter in the property Lessee will supply the area with garbage cans
that will he emptied by Lessee when applicable, as well as having SLRC (Seward
Lions Racing Club) members police activity areas before leaving each evening.
SLRC may also supply a dumpster.
b) A plan to control dust and litter and a description of the methods for collecting
trash on the site. To control dust Lessee shall usc a watcr truck for dampening the
dirt before racing.
c) A plan to ensure compliance with the applicable environmental laws (for example
petroleum substances and other hazardous materials). To ensure proper clean up of
potential spills, Lessee will have a supply of "Sorbi" pads available to clean up any
excess fluids. Also, we plan on having a large container such as a garbage can and
shovel available for removing all contaminated soil that will be disposed of and
treated properly when necessary.
d) Ao operation plan that will include identification of the appropriate individual(s)
responsible for security, enforcement, noise, operation, dust control and
environmental plans developed by the operator. The operation plan shall also include
provisions to monitor and enforce prohibition of alcoholic beverages on the premises.
At any time during an activity any club members on scene are responsible for
enforcing, established rules or guidelines for the track, such as enforcing the hours of
operation.
e) A plan to mitigate traffic impact<; on access roads and the immediate
neighborhoods. Such plan shall include mandatol)' tnmsportation of racing motor
vehicles to the site, a~ well as methods to prevent casual access to and from the site
and mitigate adverse effects of the racetrdCk upon adjacent land uses. In order to help
LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
-PAGE 29 OF 30.
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LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD RACING LIONS CLUB
MAY 2006
~PA(jE 30 OF 30~
3. Maximum hours of operation for the racetrack shall be from 7;00 a.m. to 10;00 p.m.
Monday through Saturday and from 12;00 noon to 10:00 p.m. on Suuday.
2. Lessee has provided and will keep in effect an insurance policy in the amount of Fifty
Thousand Dollars ($50,000) for the cost of rehabilitation or clean up in the case of an environmental
release or spill.
j) A plan for controlling access beginning with the north and east bouudarics.
i) An emergency response plan. Lessee shall notifY volunteer emergency response
personnel of all scheduled events and shall request the presence of volunteer
emergency response personnel at all large events held by the SRLC. In addition,
SLRC shall use its best efforts to train al:! many SRLC members as possible in first
aid and CPR in order to make all activities as safe as possible.
h) A plan for public sanitation facilities.
g) A parking plan in accordance with SCC 15.10.215.
f) A landscape plan emphasizing retention of native vegetation, in order to provide
visual enhancement, noise buffers, screening and as a natural erosion control method.
Alders and other trees on the Leased Premises will not be removed, in order to help
create a barrier and inhibit riders from leaving the area. Also, this will help to create
a dust screen and noise buffer for the surrounding properties.
control the impact of traffic on areas surrounding the Leased Land, Lessee shall post
signs clearly stating authorized areas for the public. Signs will include identifYing
where the Leased Land property lines are and that riding beyond them is prohibited.
If these rules are violated it will be the responsibility of any member present to report
the violators. Lessee will post signs located at the entrance to the Leased Land
stating that" All unlicensed racing vehicles must arrive at the track on a trailer or in a
truck" in order to be admitted to the area.
Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ENTERING INTO A FIFTH AMENDMENT TO THE
AGREEMENT FOR THE FINANCING, LEASE, CONSTRUCTION,
OPERATION AND MAINTENANCE OF THE ALASKA SEALlFE
CENTER, BETWEEN THE CITY OF SEWARD AND THE SEWARD
ASSOCIATION FOR THE ADVANCEMENT OF MARINE SCIENCE
(SAAMS), TO LEASE A PORTION OF ALASKA TIDELANDS SURVEY
174, SHOWN AS ATTACHED EXHIBIT DATED OCTOBER 20, 1998,
LOCATED SOUTH AND SEAWARD OF CITY OWNED TRACT 2A,
WATERFRONT TRACT, WHICH IS CURRENTLY LEASED BY SAAMS
WHEREAS, the Seward Association for the Advancement of Marine Sciences
(SAAMS) has submitted a proposal to lease city-owned tidelands and submerged lands which
are South and seaward of the Alaska SeaLife Center property. The Alaska SeaLife Center
property is currently leased by SAANlS and has a legal description of Tract lA, Waterfront
Tract; and
WHEREAS, SAAMS will need to provide the City of Seward with a legal description of
the portion of the tidelands and provide a plat within 90 days of final lease approval, and
WHEREAS, in 1999 SAAMS obtained an Army Corps of Engiueers (ACOE) permit
authorizing use of a floating dock on this site and a renewal is currently being sought from the
ACOE; and
WHEREAS, the Conditional Use Pennit issued to SA..A.M.S in 1997 stipulated that
"Future expansion plans shall be subject to P & Z review and approval", therefore an amendment
to the Conditional Use Permit was approved at the March 7, 2006 Planning and Zoning meeting;
and
WHEREAS, the Seward Planning and Zoning Commission passed a resolution
supporting the lease of the tidelands, subject to certain conditions; and
WHEREAS, SAAMS and the City of Seward have reviewed the partnership
arrangement for the floating dock regarding leasing fee structure, private versus public use and
other issues; and
WHEREAS, this lease would enhance existing operations by providing for tideland
exhibits and providing a floating dock for chartered boat tours; and
WHEREAS, the City of Seward encourages more waterfront activity and supporls the
use of tidelands for marine exhibits; and
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PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 24h day of
April, 2006.
1. Tbis resolution shall take effect thirty (30) days after its adoption.
Section~
4. SAAMS is required to subdivide the new lease parcel subject to City approval 90
days after the effective date of the lease amendment.
3. The City and the applicant are encouraged to negotiate the use of the dock by other
operators taking into consideration liability issues.
2. Alaska State Statute 38.05.126 &127 shall be considered in the negotiations of the
lease agreement.
1. The use of the tidelands for a dock and boat shall be done in a manner which
minimizes conflicts with public use of the beach and tidelands.
Section 1. The City of Seward finds that leasing a portion of the city-owned tidelands having
a legal description of Alaska Tidelands Survey 174 will allow for expansion of existing
operations for the Seward Association for the Advancement of Marine Science and this is
consistent with the Municipal Lands Management Plan, the Strategic Plan, and thc
Comprehensive Plan, subject to the following conditions:
NOW, THEREFORE, BE IT RESOLVED by the City Council of thc City of Seward
Alaska that:
WHEREAS, the City of Seward finds that providing this lease to SAAMS is in the
public interest.
WHEREAS, proposed Amendment No.5 has been reviewed by the City of Seward and
the SAAMS administration and is available for public review; and
CITY OF SEWARD, ALASKA
RESOLUTION 2006-42
Page 2 of3
Council Agenda Statement
Meeting Date:
April 24, 2006
Clark Corbridge, City Manager (}J q-1o -Ob
Malcolm G. Brown, Planuer .It$tf!--
" O!SE"~
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Through:
Prom:
Agenda Item:
The Seward Association for the Advancement of
Marine Science request to lease a portion of the
adjacent tidal and submerged lands located within
Alaska Tidelands Survey 174 for the installation and
operation of a floating dock for tour boat operations
BACKGROUND & JUSTIFICATION:
The Seward Association for the Advancement of Marine Science (SAAMS) has
requested to lease a portion of city-owned Alaska Tidelands Survey 174. The tidelands
and submerged lands would be used for a floating dock for tour boat operations to be
conducted by a private operator. The use of the tidelands was reviewed by the
Planning Commission at the March 7. 2006 meeting as an amendment to the
Conditional Use Permit which was issued in 1994 to SAAMS via P&Z Resolution
2006-08. The Planning Commission also reviewed the request to lease and approved
with certain conditions, via P&Z Resolution 2006-06.
The City of Seward has brought forward a negotiated lease amendment for review.
This lease amendment is the "Lease Amendment No.5 between City of Seward, Alaska
and Seward Association for the Advancement of Marine Science d/b/a Alaska SeaLife
Center" (hereafter referred to as the City's lease amendment). There are two versions
of this document in the packet. The one being forwarded to Council for approval is
entitled "City's Recommended Lease Amendment." The second version represents the
proposal by SAAMS and is entitled, "SAAMS Version." This version is included to
clearly present SAAMS' requested terms.
The primary areas of disagreement between the two proposals are as follows:
1) The City supports a passenger fee equal to that paid by users of municipal harbors
(currently $3.50), in an effort to level the competitive playing field and account for the
fact that thc property on which the floating dock exists, is public prnperty. SAAMS
does not support the $3.50 passenger fee in addition to their $3.50 dock surcharge.
The proposed dock surcharge was agreed to by the City, and is intended to compensate
the dock owner for capital construction costs.
2) The City requires the property be replatted, and SAAMS prefers not to have to
ceplat.
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Section 12 states "SAAMS and Qualified Vessel Operator shall accommodate Other
Qualified Users desiring to use the Floating Dock. Such use shall be on a scheduled basis
only and in accordance with such reasonable tel111s and conditions as determined by
SAAMS aud Qualified Vessel Operator."
Section 5.3 specifies that "SAAMS shall pay to the City as additional rent [$3.50] pcr
passenger, or such amount for passenger fees as adopted from time to time in the City's
Port and Harbor tariffs. The payment, timing of remittance, reporting, and audit of
passenger fees shall be, in all respects, subject to the provisions of the Port and Harbor
Tariff. The Passenger Fee shall be in addition to any Dock Surcharge." This provision
ensures consistency with use of City assets and will assure the dock is not in direct
competition with the Seward Boat Harbor.
Staff recommends approval of the lease of the tidelands as proposed in the City's
recommended lease amendment.
6) The City requires that the annual lease rate of $8,000 be adjusted by the Consumer
Price Index each year, similar to the manner in which other City leases are now being
crafted. SAAMS does not support the annual CPI increase provision.
5) The City requires that the agreement between SAAMS and the dock owner be
attached as an exhibit to this lease agreement and SAAMS objects. The Agreement
between the City and SAAMS requires that subleases be provided to the City by
SAAMS (Section 10.1). The City believes this agreement to be a sublease, as it limits
the use of a portion of tidelands property to an exclusive dock owner, for an established
fee, meeting the legal definition of a sublease. The administration believes that the
agreement is material to a full understanding of the City's long-'term commitment of
this property.
4) The City requires that the arbitration provisions of the operating and lease
provisions mirror those of the over-riding Agreement between the City and SAAMS,
and SAAMS prefers to use another arbitration method.
3) Both parties agree that the dock will be available for use by other users. SAAMS
has limited the use of the dock to other commercial users operating sightseeing tours.
Such users are required to maintain $5,000,000 I $6,000,000 (marine protection,
automobile, and general liability) in insurance, which compares to the City's
$1,000,000 requirements for vessels utilizing the Small Boat Harbor.
CITY OF SEWARD, ALASKA
RESOLUTION 2006-42
CITY OF SEWARD, ALASKA
RESOLUTION 2006-42
The Floating Dock shall be considered a private dock located on the City-owned
property. (Section 1.5)
Public input: This item was brought forward as a public hearing item at the March 7.
2006 Planning and Zoning Commission meeting along with the request to amend the
Conditional Use Permit. Several members of the public spoke about this action. The
request to lease was also reviewed by the Planning Commission as an "Unfinished
Business" item at the April 4, 2006 meeting at which several members of the public
gave testimony. as shown in the minutes from the March and the April P&Z meetings.
Several members of the public reviewed the application before the meetings. 'The
Clerk's office has continued to receive requests for documentation regarding the lease
request.
Surrounding Land Use and Zoning: Tract 2A Waterfront Tracts is located within the
Central Business District, a district which is intended to provide an area "of convenient,
attractive, concentrated commercial development primarily intended for relail,
financial, entertainment and professional services occurring within enclosed structures.
Regulations applying to this zone are designed to encourage a compact group of
businesses of the type which are mutually beneficial and located close enough together
to encourage walk-in trade, SCC 15.05.025(9).. The land to the East is used for
Parks, the land to the North is primarily used for retail, offices and restaurants and the
land to the West is used by the Institute for Marine Sciences.
Floodplain status: According to the FEMA Flood Insurance Rate Map, the tidelands
property is located in a Coastal Velocity zone. Staff and the State Floodplain
Administrator have determined that a Floodplain Development Permit will be needed.
Staff has provided the ASLC with the application.
Drainage: Staff does not anticipate any impact on drainage due to this activity.
Utilities: The property is served by existing public utilities and developed streets. The
applicants have slated that the dock will not need electricity, water or sewer.
Location:
Tract 2A, Waterfront Tracts and an adjacent portion of Alaska
Tidelands Survey 174, a plat will be needed to finalize the
boundaries
Size;
79,451 square feet of tidelands, as per the site plan submitted by
the applicant
Zoning:
Central Business District (CBD) for the uplamls, the tidelands are
not zoned.
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RECOMMENDATION:
Staff recommends that Council approve Resolution 2006-42, in accordance with the
City's lease amendment. The City's lease amendment ensures collection of passenger
fees for the City, public use of the dock and clarifies operations and maintenance
lssues.
FISCAL NOTE
This Amendment allows for an initial annual rent in the amount of $8,000, which shall
be adjusted each year based on the Consumer Price Index. In addition, the City will
receive $3.50 per passenger in the form of a Passenger Fee. In accordance with the
lease amendment all surveying, platting and recording costs for this city owned land
shall be paid for by the applicant.
Finance Approval: :JJUiiii;:J ~~
3. Municipal Lands Management Plan (1995) .lL...
This plan has a recommendation for "Tidelands, Undeveloped Remainder, Retain
ownership. Except for tidelands directly adjacent to upland Parks, dispose through
lease or permit as opportunities arise (pages 22-23).
2. Strategic Plan (1999) .lL...
This plan has statement which provides general support for this type of an aCtiVIty
"Vision Base: We are a conununity that promotes economic diversity, encourages
growth of year-round businesses, desires environmentally-responsible industry, and
seeks jobs that promote a higher standard of living (page 3). "
1. Comprehensive Plan (2006) .lL...
The Comprehensive Plan encourages the City to "Improve and expand onshore and
offshore maritime facilities (see Port and Harbor Development) (page 18) and to "Use
city-owned land and tidelands to encourage feasible and sound economic development by
setting development standards and performance periods through the leasing process.
Evaluate for disposal city-owned lands which have not or will not be dedicated to a
public purpose (page 20)."
No
Yes
CONSISTENCY CHECIU,IST:
Proposed Use: The applicant proposes to have a privately owned and used
floating dock to support boat tours of approximately two hours. The tours would take
place several times per day and hold a maximum of fifty (50) passengers.
Existing Use: The Alaska SeaLife Center is used for marine research, marine
related outreach, marine education, visitor tours and retail activities.
CITY OF SEWARD, ALASKA
RESOLUTION 2006-42
DRAFT04l1;uo6
CITY'S RECOMMENDED LEASE AMENDMENT:
FIFfH AMENDMENT TO
AGREEMENT FOR FINANCING, LEASE,
CONSTRUCTION, OPERATION, AND MAINTENANCE
OF THE ALASKA SEALIFE CENTER
TInS FIFIlI AMENDMENT (the "Amendment") to the Agreement for
Financing, Lease, Construction, Operation, and Maintenance of !he Alaska SeaLife Center dated
April 28, 1995, as amended (the "Agreement"), is dated as of , 2006, and is entered
inlo by and between the City of Seward, Alaska (the "City"), and the Seward Association for the
Advancement of Marine Science, d/b/a Alaska SeaLife Center, an Alaska nonprofit corporation
("SAAMS").
WHEREAS, Ihe City and SAAMS initially entered into the Agreement on
April 28, 1995, according to the terms of which the City lea...ed to SAAMS, and SAAMS leased
from the City, property to be used tor the construction and operation of the Alaska SeaLife
Center (the "Project"); and
WHEREAS, the City and SAAMS entered into the First Amendment to the
Agreement on May I, 1996, the Second Amendment to the Agreement on March 26, 1997. the
Third Amendment to the Agreement on November 7, 1997, and the Fourth Amendment to the
Agreement on June 28, 1999; and
WHEREAS, the parties desire to amend the Agreement to include additional real
property under the terms of the Agreement; and
WHEREAS, the City is legally authorized to enter into this Amendment, and
SAAMS is legally authorized to enter into this Amendment.
NOW, THEREFORE. in consideration of the premises and of the mutual
covenants herein set forth, the parties hereby agree as follows:
1. DEJi'INITIONS. The following terms shall for all purposes of this
Amendment have the following meanings:
1.1._ "Agreement" shall mean the Agreement for Financing, Lease,
Construction, Operation. and Maintenance of the Alaska SeaLife Center dated April 28, 1995, as
amended.
1.2. "Amendment" shall mean this Fifth Amendment to the Agreement.
1.3. "Dock Surcharge" shall mean a charge as determined from time to
time during the term of the Agreement by SAAMS and Qualified Vessel Operator as necessary
and sufficient to cover the financing, maintenance, transportation, storage, and insurance costs
related to the Floating Dock. The initial Dock Surcharge has been set at $3.50 per passenger.
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASE. CONSTRUCTION,
OPERATiON, AND MAINTENANCE OF THE ALASKA SEAUFE CENTER
1
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2
F1Fl11 AMENDMENT TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THE AlASKA SEAUFE C1!,'NTER
2.1. Effective Date and Term. This Amendment shall become effective as
described in Section 1.4 of this Amendment, and continue for the remaining Term
of the Agreement unless earlier terminated as provided in Section 3.12 and
Section 8 of the Agreement.
2 - TERM AND EFFECtIVE DATE.
1.12. "Tour" shall mean the Alaska SeaLife Marine Tour operated by the
Qualified Vessel Operator, or such other name that may be determined by SAAMS and the
Qualified Vessel Operator.
1.13. All other capitalized tenns in this Amendment shall have the same
meanings as set forth in the Agreement.
1.11. "Rent" shall mean the rental rate provided in Section 4.
1.10. "Qualified Vessel Operator" shall mean a company meeting all
local. state, and federal requirements that is engaged in the business of operating marine
educational tours on Resurrection Bay and who has entered into an agreement with SAAMS to
plan, engineer, construct, transport, install, situate, secure, equip, repair, refurbish, own and
operate the Floating Dock and conduct the Tour.
1.9. "Property" as described in Section 1.1.30 of the Agreement is hereby
amended to include the tidelands area described on Exhibit A, attached hereto and incorporated
herein (''Tidelands Property").
1.8. "Project" as described in Section 1.1.26 of the Agreement is hereby
amended to include the Floating Dock.
1.7. "Passenger Fce" shall mean a fee of $3.50 per passengt:r, as defined
in the City's Port and Harbor Tariff, or such amount for passenger fee afl adopted from time to
time in the City's tariffs, for any vessel using the Floating Dock.
1.5. "Floating Dock" shall mean the floating dock, gangway, supports,
utilities, ladders, fire and safety equipment and all equipment necessary and proper for their use.
The Floating Dock shall he a private dock located on the Property.
1.6. "Other Qualitled User" shall mean a company meeting all local. state,
and federal requirements to engage in the businc....s of operating waterborne sightseeing toUTfl
from Seward and who complies with all the requirements set out in this Amendment.
1.4 "Effective Date" shall mean the later of (i) the effective date of
Resolution No. ZQ()6.. _ as initially enacted by the Seward City Council, and (ii) the date of
certification of the results of a referendum election approving Resolution No. 2006-_, if
Resolution No. 2006-_ is the subject of a sufficient and timely referendum petition, and shall
continue for the remaining term of the Agreement unless earlier tenninated as provided in this
Amendment or the Agreement.
DRAFT 04f1~O~ __ _ _ ~ {DeI~: 2
CRAFT 04I1~~_
2.2. Subject to Refererulum. SAAMS understands and assumes the risk that
under the Charter and Code of the City of Seward, Alaska, Resolution No. 2006-
- authorizing this Amendment, may be voided by referendum. SAAMS agrees
that if the Resolution is the subject of a valid referendum petition filed with the
Seward City Clerk, SAAMS shall have no rights or obligations under this
Amendment unless and until the Resolution is approved by the voters of the City
of Seward, and SAAMS shall not be entitled to any damages or any other relief
against the City in the event the Resolution is not so approved.
3. TIDELANDS.
3.1. Tidelands Accepted "As-is." SAAMS acknowledges that it has inspected the
Tidelands Property and accepts the same "as is" and without reliance on any
expressed or implied representations or warranties of the City, or agents of the
City, as to the actual physical condition or characteristics thereof, including but
not limited to the description of the Tidelands Property herein.
3.2. SUrvev of Tidelands ProDertv. Within ninety (90) days from the Effective
Date of this Amendment, SAAMS, at its sole cost, will cause the Tidelands
Property to be surveyed and Ivlatte~ bi' _a_.l~nd ~1,!IY~yor_ ~g~s~e~ !n_ ~~ _ Stat~ _oJ_ __ _ _ _
Alaska. A copy of the drawing and depiction of the Tidelands Property based
upon this survey shall be attached to this Amendment as Exhibit B and
incorporated herein by reference. The description of the Tidelands Property in
Exhibit B shall supersede the description in Exhibit A, and shall be considered the
correct description of the Tidelands Property for all purposes under this
Amendment. SAAMS shall provide the City a copy of any and all surveys within
ten (10) days of SAAMS' receipt of any and all surveys. The City shall have the
right to comment upon any and all surveys, but the exercise of this right shall not
imply any obligation to do so or any obligation to do so in any particular way. If
the City objects to the surveyor's conclusions in the survey, the City may give
written notice to SAAMS of the City's objection within thirty (30) days of receipt
of the survey. The City shall then engage a second land surveyor registered in the
State of Alaska at the City's expense, to make a second survey of the Tidelands
Property. City shall provide SAAMS a copy of the second survey within ten (10)
days of City's receipt of the second survey. Unless the City and SAAMS agree
which survey is acceptable, the acceptable survey shall be determined in
accordance with the arbitration provisions contained in the /Agreement _ _ _ _ _
3.3. Future Replatting. In the event the City elects to replat City-owned real
property adjacent to the Tidelands Property, the City agrees to include the
Tidelands Property in such replat. If SAAMS requests a replat of the Tidelands
Property prior to that time, the City shall assist SAAMS in the preparation of and
filing of the replat and SAAMS shall reimburse the City for the City's direct costs
in assisting in the preparation and filing of the replat. SAAI\.1S 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 Tidelands Property. SAAMS shall
FIfTH AMENDMENT TO AGREEMENT FOR FINANCING, lliASE, CONSTRUCTION.
OP/::RATION, AND MAINTENANCE OF THE AlASKA SF;AUFE CENTER
3
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improvemcnll""'p18cedOlla~.if
mustbeplauaJ.
Comment [1a]1 The al)' is wlUlnglO
di8CUS$ thc_ why SAAMS may
prderlO_IhcBrbilralimprovisiOf\S
otbetlbunrhoseestabliobedlnlhc
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10 Ihc provi.ion llleal)' now Includel in
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4
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF TIIE AlASKA SEAUFE Ct.NlEK
If the second appraisal determines a FaiT Market Value that varies from that
detennined by the ftrst appraisal by no more than twenty percent (20%), then the
adjusted Rent shall be the average of the rental rates detennined by the appraisals.
If the second appraisal determines a Fair Market Value that varies from the first
appraisal by more than twenty percent (20%), then, unless the City and SAAMS
agree on a rate themselves, the Fair Market Value and the adjusted annual Rent
4.3 Procedure for Rental Adjustment. The appraiser's determination of the Fair
Market Value of the Tidelands Property under Section 4.2 shall constitute a final
binding determination of the Fair Market Value and the adjusted annual Rent until
the next Rental Adjustment Date, unless SAAMS gives written notice to the City
of its objection to the appmiser's determination within thirty (30) days of receipt
of the appraiser's report, and SAAMS shall than engage a second independent
MAl-certified appraiser at SAAMS' expense to make a second appraisal of the
Fair Markel Value in accordance with Section 4.2.
4.2. Rental Adjustments. The annual Rent for the Tidelands Property shall be
adjusted on July 1, 2010, and on the same date every five years thereafter (each a
"Rental Adjustment Date"). The adjusted annual Rent to be paid under this
Amendment shall be eight percent (8%), subject to future adjustment by the
Seward City Council at any time during the Term of this Agreement, of the
appraised Fair Market Value of the Tidelands Property at the highest and best use
of the Tidelands Property. The City shall,at its own expense, retain an
independent MAI-certified appraiser, who shall detennine the "Fair Market
Value" of the Tidelands Property, exclusive of improvements placed thereon by
SAAMS but inclusive of al1 improvements made by the City (including those
made before or subsequent to this Agreement), assuming the highest and best use
of the Tidelands Property. The City shall complete such appraisal and deliver a
copy of the appraisal report to SAAMS not less than ninety (90) days before the
Rental Adjustment Date
4.1. Initial Rental Rate.. Commencing on the Effective Date of this Amendment,
the initial annual Rent for the Tidelands Property shall be $8,000. The Rent shall
be payable quarterly in advance upon the Effective Date and thereafter on or
before the 20th day of the first month of each calendar quarter: January 20, April
20, July 20, and October 20. The amount of each quarterly payment shall be one-
quarter (1/4) of the annual Rent as initially established or later adjusted under
Section 4.2 or 4.6 of this Amendment.
~ - RENTAL RATE
accept reasonable restrictions, casements, or plat notes as may be required by the
City or other governmental authorities as a condition to record the plat of the
Tidelands Property or the plat of City-owned real property adjacent to the
Tidelands Property.
DRAFT04/1~O~_
DAAFT04/1.Jl~____ -[O;reted~'~
of the Tidelands Property shall be determined by arbitration according to the
arbitration provisions contained in the~greemen~.__
4.4. Effect of Lute Approisal by City. If, for any reason, City does not complete
the appraisal of the Tidelands Property or delivery a copy of the appraisal report
to the SAAMs ninety (90) days before the Rental Adjustment Date, City may
proceed to complete the appraisal or deliver a copy of the appraisal report to
SAAMS at any lime thereafter. However, any resulting adjustment to the annual
Rent shall not be effective until the first quarterly rental payment due date that is
immediately following the date the City delivers the appraisal report to SAAMS.
4.5. Effective Date of Adjusted Rental Rate. The adjusted annual Rent for the
Tidelands Property shall apply as of the Rental Adjustment Date if the City
provided a copy of the appraisal report to SAAMS ninety (90) days before the
Rental Adjustment Date. If the adjusted annual Rent is based on City's late
appraisal or late delivery of the appraisal report to SAAMS. lhe adjusted Rent
shall be effective beginning with the quarterly rental payment due date
immediately following the date the City delivers the appraisal report !o SAAMS.
Notwithstanding the above. the exercise of lhe objection procedure relating to
rental adjustment shall not postpone SAAMS' obligation to pay rent at the rate
established by the City. SAAMS shall pay !he amount of rent as established or
adjusted by the City until the question of objection to the rental rate is finally
resolved. At such time as the objection to the Rent is resolved, an appropriate
credit or adjustment shall be made retroactive to the date the new Rent was
established by the City or in cases where the City failed to obtain an appraisal or
deliver the appraisal report to SAAMS, to the Rental Adjustment Date.
4.6. Interim Rental Adjustments for Consumer Price Index. For each year in the
period between each Rental Adjustment Date, excepting the Rental Adjustment
Dales, the annual rental payment for the Tidelands Property shall be increased
beginning July I of every year thereafter (each on "Interim Rental Adjustment
Date'') in an amount lhat reflects the increase. if any. in the cost of Jiving 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 fur the most recent period
published inunediately 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 i
approximates the CPI for the relevant period, and make whatever adjustment in its ,-
application as may be nece.o;sary. in the City's sole discretion. to accomplish as '
nearly the same result as if the CPI had not been revised or ceased to be "
publish~.7. Effective Date ofChrmge in Percentage of Fair Market Value. If i
the Seward City Council at any time elects to modify the percentage of Fair
Market Value that is used to determine the annual Rent to a percentage other than
8%, that rate change will take effect beginning with the quarterly rental payment
FIFTH AMENDMENT' TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION.
OPERATION, AND MAINTENANCE OF THEAIASKA SJ!A.UFE CENTER
5
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and the ClIIISwnetprioelndufCIolto In
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6
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTiON,
OPERATION, AND MAINTENANCE OF THEAfASKA SEAUFE CENTER
ul
1-,.
5.3. Passenger Fees. The City Council find.. that it is in the public interest to
charge a Passenger Fee based on the use of publicly owned land for this private
dock facility'_~_eRll!i!l~~ -,lP_Y_J!.O~~tial. ~qI!lP~t~t!.v:e__a~Yal!~g~ fOoT _any _ user of the
Floating Dock, over users of the City's municipal docks. SAAMS shall pay to the
City as additional rent, $3.50 per passenger, or such amount for passenger fees as
adopted from time to time in the City's Port and Harbor Tariff. The payment,
timing of remittance. reporting, and audit of Passenger Fees shall be, in all
resJle'-is, subject to the provisions of the Port and Harbor Tariff. The Passenger
Fee shall he in addition to any Dock Surcharge.
5.4. Ownership of Dock. SAAMS and the Qualified Ves&el Operator shall have
the right and the responsibility to own, furnish, maintain, operate, and manage the
Floating Dock on the Tidelands Property subject to the following conditions:
5.1. Purpose. The intent of this lease ufTidelands Property is to provide for a
seasonal Tour of Resurrection Bay aboard a vessel departing from the Alaska
SeaLife Center that will complement the educational experience of visitors to the
Alaska SeaLife Center. The Tour will be conducted from the FloatingDock
connected to existing shoreside improvements on the Pmperty that will be used by
passengers to embark and disembark from vessels on the Tour. SAAMS shall
construct, own, furnish, maintain, operate, and manage the Floating Dock, or shall
cause the same to be done by a Qualified Vessel Operator. No sales of any kind
shall occur on the Floating Dock.
5.2. Dock Condition. SAAMS shall at all times, cause the Floating Dock to be
maintained in good condition and repair, and in so doing, shall keep it clean and
clear of unnecessary potential hazards that may develop as a result of SAAMS
operations, or those of its agents, officers, employees, customers, or contractors.
SAAMS acknowledges that weather and sea conditions may impact use and
maintenance requirements of the Floating Dock.
5. Use of Tidelands Property. The City has limited land available for use. Use of the
Tidelands Property for a floating dock facility has been determined hy the City Council to
be in the public interest. SAAMS' use of the Tidelands Property is restricted to the
following use:
4.8. 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 as authorized in the City's fee schedule, 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
due date immediately following the effective date of the Resolution which
modifies the 8% rate.
DRAFT04/1;}LO~ -lDeleted:2 _==-___ -J
DRAFT D411~9~_
5.4.1. DeadJine for Construction. SAAMS shall cause the Floating Dock
to be constructed on and/or furnished to the Tidelands Property by June I,
2007.
5.4.2. Cost of Construction. The cost of any such construction,
reconstruction, demolition, or of any changes, alterations or improvements
shall be borne and paid for by SAAMS and the Qualified Vessel Operator.
5.4.3. Mechanic and Materialmen's Liens. The Tidelands Property shall
at all times be kept free of mechanics' and materialmen's liens.
5.4.4. Plans and Specifications. SAAMS has supplied the City with a
copy of the construction plans and specifications and a site plan for the
Tideland~ Property and Floating Dock as shown on attached Exhibit C.
The site development plan is considered an essential tenn and condition.
Any material changes to the approved site plan shall be subject to approval
by the City through the city manager, who may elect to require both
Planning and Zoning Commission and City Council approval for
substantive site plan changes, which approval shall not be unreasonably
withheld.. .
5.4.5. As-built Surveys. On completion of the improvements, SAAMS
shall provide the City a copy of an as-built survey depicting the Floating
Dock as completed.
6. Performance and PaYment Bonds. SAAMS shall require any general
contractor it employs or any general contractor employed hy Qualified Vessel
Operator to obtain performance and payment bond~ in the amount of the contract
price, and in the customary fonn, and furnish such bonds to the City prior to
commencement of construction; provided that if the cost of the work is less than
$50,000, SAAMS may require in lieu of perronnance and payment bonds, another
form of performance guaranty acceptable to the City. Copies of all such bonds
shall be furnished to the City at least ten (10) working days prior to
commencement of construction.
7. Notice of Non~responsiblIItv. The City may, as contemplated by Alaska
Statues, give notice of non-responsibility for any improvements constructed or
effected by SAAMS on the Tidelands Property.
8. City Review of Construction.
8.1. The City shall have the right to review initial plans, including those supplied
to the City under Section 5.4.4 above, and any future changes or additions to the
Floating Dock on the Tidelands Property by reviewing the design thereof prior to
the commencement of construction. The City shall have the right to comment
upon that design and require SAAMS to make reasonahle changes so as to avoid
interrerence with public operations, but the exercise of these rights shall not imply
FIFTH IIMtNDMENTTOAGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION. AND MAINTENANCE OF THE ALASKA SEAUFE CENTER
7
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8
FIFTH AMENDMENT TO AGREEMF.NT FOR FINANCING. LEASE, CONSTRUCTION.
OPERAnON, AND MAINTENANCE OF THE ALASKA SEAUFE CF.NTER
In the event the City or SAAMS receives notitication from a federal or state
environmental agency with regard to SAAMS' failure to comply with
requirements to acquire necessary permits, or to comply with specific permit
provisions, SAAMS shall have 30 days from the date of such notice to cure such
non-compliance. Failure to cure within 30 days mall be cause for the city
manager to order SAAMS to immediately cease any operations or activities on the
Tidelands. SAAMS ha.'l the sole responsibility to immediately provide City with
copies of all correspondence and notices of all reports between SAAMS and any
state, federal or local government or agency which relates to the operations by
SAAMS, a Qualified Vessel Operator, or an Other Qualified User, on or use of
the Tidelands or the Floating Dock.
9. Permits and Reportine bv Other Governmental Aeencies. SAAMS. at its
sole cost. shall obtain all permits or approvals required by applicable law or
regulation, necessary to the construction. SAAMS has provided a copy of the
Anny Corps of Engineers permit for the Floating Dock, to the City, and will
provide any amendments to that permit to the City as they are received from time
to time. SAAMS shall comply, and shall remain in compliance during the term of
the Agreement. with all stipulations, requirements, and conditions. within its
power to perlonn, of any permit of any governmental agency having jurisdiction
with regard to the Tidelands Property and Floating Dock. SAAMS 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
Hazardom; Material. SAAMS accepts all risk and responsibility for trash
collection, wa.'lte oil collection and compliance with all laws. regulations and
ordinances applicable to the Tidelands Property and Floating Dock.
8.2. Improvements on Tidelands. SAAMS shall have the right and responsibility
to plan, engineer, construct. transport, install, situate, secure, equip, repair,
refurbish, and maintain the Floating Dock on the Tidelands Property in
accordance with all applicable laws, ordinances, rulings of courts, and other
governmental bo<.Iies, including the Americans with Disabilities Act.
any obligation to do so nor any nhligation to do so in a particular way. The
Floating Dock shall be constructed in accordance with the final design
specifications reviewed by the City. The City's representatives may monitor the
work and shall have access to the Tidelands Property at all reasonable times.
SAAMS shall be solely responsible for completing all improvements in
accordance with SAAMS' and Qualified Vessel Operator's plans and
specifications and shall bear all risk, responsibility, and liability for properly
surveying the Tidelands Pmpcrty before construction and placing all
improvements on the Tidelands Property without encroaching upon any
easements, rights-of-way, or setback requirements.
ORAFT04I1;V06__ -- ~~:~___"~__J
DRAFT04J1ND6__ - ~~_=2 ._-~-~_J
10. Utilities. SAAMS, at SAAMS' sole cost and expense, may provide for
the extension of public utilities to the Tidelands, sufficient for SAAMS' intended
operations. In so doing, SAAMS shall comply with all City regulations and
requirements and the tariffs of the affected utilities, with respect to the
construction of those utilities. The City agrees to cooperate and assist SAAMS in
SAAMS' planning and engineering of those improvements. All construction will
be in compliance with the International Building Code and other codes of
technical regulation as adopted by the City. Utilities constructed by SAAMS
within the public rights-of-way or within public utility easements that will
normally be accepted and maintained by the City or utility companies may be
used to serve oilier customers of the utility without payment of fees or
reimbursement of construction cost to SAAMS. However, this does not preclude
several customers from agreeing to share the cost of constructing a utility to serve
their facilities. The City or other utility company may detennine 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 costs of such
oversizing shall be borne by the City or other utility company. Such costs shall be
limited to the supplier's cost of thc additional fittings, equipment, direct labor,
and costs to complete the installation. The costs of oVl:rsizing 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 the City or utility company.
SAAMS shall not be entitled to any refund, rebate, or payments from City for any
rent, inve.~tment, or costs incwred by SAAMS with respect to any required
permits for construction or operation of facilities on the Tidelands, it being the
intent of the parties that the cost and risk of obtaining required permits be solely
costs and risks assumed hy SAAMS.
11. Insurance ReQuirement.... Prior to the use of the Floating Dock, SAAMS
and any Qualified Vessel Operator shall furnish the City, with certificates of
insurance evidencing:
11.1. Marine Protection and Indemnltv. Marine protection and
indemnity insurance, with limits of liability not less than $5,000,000 for
all injuries, death, and property damage per occurrence/aggregate.
11.2. Commercial General Liabilitv. Conunercial general liability
insurance, with limits of liability not less than $5,000,000 per occurrence
and $6,000,000 aggregate for all injuries, death, and property damage.
11.3. Comprehensive Automobile Liabilitv. Comprehensive
automobile liability insurance covering all owned, hired, and non-owned
vehicles with limits of liability not less than $5,000,000 combined single
limits per occurrence.
FIFTH AMENDMENrTO AGREEMENT FOR nNANCING. LEASE. CONSTRUCTfON,
OPERATION, AND MAINTENANCE OF THE ALASKA SEAUFE CENIER
9
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10
FlFl1f AMENDMENt" TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THE ALASKA SEALlFE CENTER
11.8. Indemnitv. SAAMS and Qualified Vessel Operators shall defend,
indemnify and hold the City, harmless from any and all liability or claims
for damagef;, including personal injuries. death and property damage,
arising oul of or resulting from the operation of tours or use of the
Floating Dock by SAAMS, Other Qualified Users" and Qualified Vessel
Operators, their agents, cmployt:es or contactors, and the public, except for
damages arising from the sole negligence or willful acLs or omissions of
11.7. Subroe-ation Riehts Waived. All of the insurance polices
required above shall provide that the insurers waive their rights of
subrogation againsl the City, its respective officers. servants, agents or
employees. SAAMS and Qualified Vessel Operators further agree to
waive and agree to have their insurers waive any rights of subrogation
(whether by loan receipts, equitable assignment or otherwise), with respect
to deductibles under such polices and with respect to damage to equipment
including the loss of use thereof, whether insured or not.
11.6. Insurance Policy Reauirements. All insurance polices shall
provide for 30 days' notice of cancellation and/or material change to be
sent to City. SAAMS, and Qualified Vessel Operator. All sueh polices
shall be written by insurance companies legally authorized or licensed to
do business in the State of Alaska, and acceptable to SAAMS. its Operator
and the City (Best'fl Rating A- or better). SAAMS. and any Qualified
Vessel Operator shall furnish the City, certificates evidencing that they
have procured the insurance required herein prior to entering upon the
Floating Dock facility or commencing any tour activity. SAAMS and
Qualified Vessel Operators shall also name the City as an additional
insured on the marine protection and indemnity, commercial general
liability and comprehensive automobile liability, and pollution liability
insurance polices maintained by SAAMS and Qualified Vessel Operators
a<; required above, excluding coverage for claims resulting from the sole
negligence or willful acts or omissions of the City, its agents, employees
or contractors.
11.5. Pollution Liability Insurance. Environmental liabiliLy or
pollution legal liability insurance for all bodily injury and property
damage to parties other than SAAMS, Qualified Vessel Operator, or any
Other Qualified User, caused by pollution at or emanating from a tour
vessel. with limits of liahilily not less than $1,000,000 per
occurrence/aggregate.
11.4. Worker's Comoensation Insurance. Worker's compcnsalinn
insurance as required by Alaska law. The coverage must includecemployer liability protection not less than $1,000,000 per person,
$1,000,000 per occurrence. Where applicable, coverage for all federal
act.'! (i.e., U.S.L. & H. and Jones Act) also must be included.
DRAFT 04l1~06_
DRAFT 04l1.wO~_
the City, its agents, employees or contractors. If any action or proceeding
is brought against the City, SAAMS shall notify the City promptly in
writing of such action or proceeding.
11.9. Good Standine. Qualified Vessel Operator shall be in good
standing and compliance with other terms and conditions as determined by
SAAMS for use of the Floating Dock.
12. Other Oualified Users and User Fees, SAAMS and Qualified Vessel
Operator shall accommodate Other Qualified Users desiring to use the Floating
Dock. Such use shall be on scheduled basis only and in accordance with such
reasonable terms and conditions as determined by SAAMS and Qualified Vessel
Operator. Prior to the use of the Floating Dock:. any Other Qualified Users shall
furnish the City with certificates of insurance evidencing the insurance coverage
required in Section 11. SAAMS and Qualified Vessel Operator are permitted to
charge Other Qualified Users for their use of the Floating Dock at any time during
the term of this Agreement. The User Fee shall be a charge in addition to the
Dock Surcharge, the Passenger Fee, and the Qualified Vessel Operator's per-
passenger fee to SAAMS under the agreement attaehed hereto as Exhibit D and is
intended La compensate SAAMS and Qualified Vessel Operator for Iheir
maintenance. and operation expenses, plus a reasonable return on their
investment, but in no event shall the User Fee exceed $5.00 per passenger.
13. Events of Default. The following shall be considered additional Events of
Default under the Agreement:
13.1. Failure by SAAMS to construct, in accordance with Section 5.4.1
hereof, a Floating Dock on the Tidelands Property by June 1,2007.
13.2. Failure by SAAMS to have the property surveyed and platted in
accordance with Section 3 hereof.
14. Remedies for SAAMS Default. Section 8.2.1 of the Agreement. concerning
remedies of the City on SAAMS' default, is amended to read as follows:
14.1. Termination. Terminate lhis Agreement and the rights created
herein by giving notice of such election to SAAMS; provided, however.
that if a SAAMS Event of Default pertains only to the Tidelands Property,
the City's termination shall be confined to SAAMS' lea.<;ehold on the
Tidelands Property.
15. Insurance. SAAMS shall include the Tidelands Property as insured
property under the existing insurance policies covering the Property and the
Project. The City will be added as an additional named insured with waiver of
subrogation in favor of the City on all insurance required to be obtained and
maintained by SAAMS.
FIFfH AMENDMENT TO AGREEMENT FOR FINANCING. LEASE. CONSTRUCTION,
OPERATION. AND MAINTENANCE OF THE ALASlG4 SEAliFE CENTER
1\
\):)
-!Del~-:2
'-----------
---------,
_________.-----------1
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. '
12
F1FTll AMENDMENT TO AGRt:EMENf FOR FINANCING. LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THE ALASKA SEAUFE CENTER
21. Integration and Modification. The Agreement and the amendments
thereto, including this Amendment. contain the entire agreement of the parties
heretn with respect to the subject matter hereof. All negotiations, statements, or
representations. warranties, and assurances, whether oral or written, which are in
any way related to the subject matter of the Agreement and this Amendment, and
the perfonnance by either party hereto, are merged and integrated into the terms
of the Agreement, as amended by this document. The Agreement may not be
modified or amended except by a writing signed hy both parties hereto, and any
20. Other Terms of AlUeement. All terms and conditions under the
Agreement as pertaining to the Property and the Project &hall be applicable to the
Tidelands Property.
19.4 Consent. Attached is a resolution duly adopted by the SAAMS
board of dircctors authorizing the undersigned to execute and deliver thi&
Amendment on behalf of SAAMS and &tating unequivocally that no
consent or approval of any other person is required to be obtained by
SAAMS for the execution, delivery, and performance by SAAMS of this
Amendment, and this Amendment constitutes a valid and legally binding
obligation of SAAMS, enforceable in accordance with its terms.
19.3. SAAMS' obligations and performance under this Amendment will
not affect its status a& non-profit corporation under any State or Federal
laws or regulations.
19.2. SAAMS has full corporate power and authority to enter into this
Amendment.
19.1. SAAMS is a non-profit corporation in good standing under the laws
of the State of Alaska.
19. SAAMS' Reoresentations.
18. No Restriction!> on Agreement. The City and SAAMS are not subject to
any charter, ordinance, contmctual limitation, or provision of any nature
what&oever which in any way limits, re&tricts, or prevents the City and SAAMS
from entering into this Amendment or from performing any of its obligations
hereunder.
17. Consent, Approval. Except as may have already been obtained, no
consent, approval, permission, authorization, order or license of any governmental
authority, is required to be obtained by either party for the execution, delivery,
and performance of this Amendment, except as expressly provided in Section
3.2..
16. Comoliance with Laws. SAAMS shall comply with all laws concerning
the Tidelands Property.
DRAFT04l1,W.0!i___ -~eted:2__._______~1
DRAFT 0411jU06
proposed amendment or modification is without effect until reduced to a writing
signed by both parties.
IN WITNESS WHEREOF the parties have executed this Amendment effective as
of the date first above written.
SAAMS:
SEWARD ASSOCIATION FOR THE
ADVANCEMENT OF MARINE SCIENCE
By,
Its:
CTIY
CITY OF SEWARD. ALASKA
By:
Its:
ATTEST,
City Clerk
City of Seward. Alaska
FIFTH AMENDMENT TO AGRBt.'MENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THB ALASKA SEAUFE CENTER
13
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14
FIFTH AMENDMENT TO AGRt,'EMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATlQN, ANDMAlNTENANCE OF THE ALASKA SEAUFECF-NTRR
EXHIBIT A
A parcel of real property consisting of submerged lands, within Alaska Tideland Survey 174;
said parcel commencing at the northwest corner of the former Alaska Heritage Tours Dock Site,
thence S44"S9'02"E, a distance of 431.73 feet to the Director's Line ATS 174; thence
N42"45'OO"E, a distance of 295.06 feet along said Director's Line; thence N72"53'53'W a
distance of 497.81 feet; thence S2rI3'23"W, a dislance of 66.88 feet, to the true point of
beginning, containing 79,.'i41 square feet, more or less.
DESCRIPTION OF TIDELANDS PROPERTY PER SECTION 1.8
EXHIBIT A
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A parcel of real p perty consisting of submerged lands, within Alaska Tideland Survey
174; said parcel c mencing at the northwest corner of the former Alaska Heritage
Tours Dock Site. the e S44'59'02"E. a distance of 431.73 feet to the Director's Line
ATS 174; thence N42 5'00"E, a distance of 295.06 feet along said Director's Line;
thence N72'53'53W a . tance of 497.81 feet; thence S27'13'23'W, a distance of
66.88 feet, to the true poi of beginning, containing 79.541 square feet, more or less,
all according to the attached hibit B.
DESCRIPTION OF TIDELANDS PROPERTY
EXHIBIT
10106/05 Draft
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DRAFT 04l1;tL0i}.. _ __ {Deleted: 2
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EXHIBIT B
SURVEY DESCRIPTION AND DRAWING OF 1JQF;~ANDS PROPERTY AFTER
---------- ------------------- ------------ ---..--
SURVEY AND PLAT PER SECTION 3.2
~~~atted:Font;_BoI~__
F1FTlI AMENDMENT TO AGREEMliNf FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAiNiENANCE OF THE ALASR:4. SRAlJFE CENTER
EXHiBiT B
15
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10
16
FIFTH AMENDMENT TO AGREEMENT FOR f1NANC1NG, LEASt:, CON!)fRU(71QN,
OPERATION, AND MAINTENANCE OF TlIE ALASKA SEAL/FE CENTER
EXHIBiT C
<-- - (Formltbld:centered
SITE PLANS AND CONSTRUCTION PLANS PER SECTION 5.4.4
EXHIBIT C
1
DRAFTO~1~O~_ __{~~;2
DRAFT 04l1;}[O!,_ _ -- -r Del~= 2- -- --------------l
EXHIBIT D
AGREEMENT WITH QUALIFIED VESSEL OPERA TOR PER SECTION 12 +- - - 1.FoflTlattecl=_centered
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION, 17
OPERATION, AND MAINTENANCE OF THE ALASKA SEAUFH CENtER
EXHlRlTD
'/7
"3
.
WHF,REAS, legal issues have been raised regarding property acquisitions by SAAMS
and how it rdates to the City, and
WHEREAS, SAAMS and the City of Seward have addressed different point of view as
to their partnership arrangement rega.rding leasing fee structure, private versus public use and
other issues; and
WHF,RRAS, the Conditional Use Permit issued to SAAMS in 1997 stipulated that
"Future expansion plans shall be subject to P & Z review and approval", therefore an amendment
to the Conditional Use Permit was approved at the March 7, 2006 Planning and Zoning meeting;
and
WHEREAS, the City of Seward encomages mOTe waterfront activity and supports the
use of tidelands for marine exhibits; and
WHEREAS, in 1999 the applicant obtained illl Army Corps of Enginccrs (ACOE) pemlit
authorizing use of a floating dock on this site and a renewal is currently being sought irom the
ACOE; and
WHEREAS, this lease would enhance eXlstmg operations by providing for tideland
exhibits and providing a tloating dock for chartered boat tours; and
WHEREAS, SAAMS will need to provide the City of Seward with a legal description of
the portion of the tidelands prior to final lease approval, and
WHEREAS, the Seward Association for the Advancement of Marine Sciences
(SAAMS) has submitted a proposal to lease city-owned tidelands adjacent to and South of the
currently leased property having a legal description of Tract 2A, Waterfront Tract; and
A RESOLUTION OF THE SEWARD PLANNING AND ZONING
COMMISSION, PROVIDING A RECOMMENDATION TO CITY
COUNCIL REGARDING A PROPOSAL BY THE SEWARD
ASSOCIATION FOR THE ADVANCEMENT OF MARINE SCIENCE
(SAAMS), DBA ALASKA SEALIFE CENTER TO LEASE A PORTION OF
THE ALASKA TIDELANDS SURVEY 174, SHOWN AS LEASE EXIBn B
DATED October 20, 1998; LOCATED SOUTH OF CITY OWNED TRACT
2A, WATER FRONT TRACT, CURRENTLY LEASED BY SAAMS.
[postponed from the March 7, 2006 Planning and Zoning Meeting]
CITY OF SEWARD
PLANNING AN)) ZONING COMMISSION
RESOLUTION NO. 2006-09
SpoHwred by: Applicanl
Seward Planning and Zoning Commission
Resolution 2006-09
Page20fJ
WHEREAS, drafts of Lease Amendments No. 5 (was) prepared (by the City) and
provided to the public on March 30, 2006 and a draH of Lease Amendments No.5 (was)
prepared and provided to the Planning and Zoning Commissioners April 4, 2006 by SAAMS
Administration.
NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zouing
Commission that:
Section 1. The Conunission fUlds that leasing a portion of the city-owned tidelands having a
legal description of Ala,>ka Tidelands Survey 174 will allow for expansion of exisling operations
for the Seward Association for the Advancement of Marine Science and this is consistent with
the Municipal Lands Management Plan, the Strategic Plan, and the Comprehensive Plan, subject
to the following conditions:
1. The use of the tidelands for a dock and boat shall be done In a manner which
minimizes conl1icts with public use of the beach and tidelands.
2. Alaska State Statute 3S.05.126 &127 shall be considered in thc negotiations of the
lease agreement.
1. The City and the applicant are encouraged to negotiate the use of the dock by othcr
operators taking into consideration liability issues.
4. SAAMS is required to subdivide the new lease parcel subject to City approval 90
days after the effective date of the lease amendment.
Section 2.
1 The Planning and Zoning Commission recommcnds SAAMS and the City of Seward
negotiate and agree to an amendment or lease agreement addressing all differences
and issues by the April 24th City Council meeting.
Section 3.
1 TI:u~ resolution shall take effect immediately upon its adoption.
~'13
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ATTEST
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(City '~1f~H~;~:;~;71;t.
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J~~~i'~:-~M'2 )6<~L-k1>',~:____
City'Clerk '---/
Strobel, Roach', Hohl, Anderson, Clark, Smith
None
Keil
None
AYES:
NOES:
ABSENT;
ABSTAIN:
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TO:S~;~~i~~'>-;rir oJ- ~/,---Z--l~\
THE CITY OF SEWARD
PASSED AND APPROVED by the Seward Planning and Zoning Commission this 411 day of
April. 2006,
Seward Planning anti Zonmg COUlIIllSSlOP
Resolution 2006-09
Page'3of3
7.01.010
7.05.110.
7.05.115.
7.05.120.
7.05.125.
7.05.130.
7.05.135.
7.05.140.
7.05.145.
7.05.150.
7.05.155.
7.05.150.
7.05.210.
7.05.215.
7.05.220.
7.05.225.
7.05.230.
7.05.410.
7.05.510.
7.05.515.
7.05.520.
PUBLlC PROPERTY
Chapter 7.05. Acquisition and Disposal of Real Property'"
Art.icle 1. Generally
Adoption of provisions and statutory authority.
Definitions.
Alternative means of real property acquisition or disposition.
Public hearing and notice.
Terms and conditions to be made available.
Authorizing resolution to approve terms and conditions.
Posting copy of resolution.
Effectiveness of resolution.
Appraisal.
Notice of foreclosure sale.
Adjustment to fair market value.
Article 2. Disposition of Real Property by Public Auction or Sealed Bid
Terms and conditions of sale.
Location of sale.
ProcedW'e for sale by sealed bid.
Selection of successful bidder(s).
Resolution accepting bids.
Article 3. Short--Thrm Lease Negotiation
City manager authorized to negotiate short-term leases.
Article 4. Encroachments, Easements and Rights-of-Way
Easements and rights-of-way.
Encroachments.
Recording.
"State law references-See AS 29.35.010(8) for state provisions allowing a municipality
to sell, own, etc., real property; see AS 29.35.030 for state provisions allowing municipalities
to exercise the powers of eminent domain; see AS 29.71.010 as to adverse possession.
Supplem"nt Nu. 03-1
7-2.2
"1
u
('C)
,,~
7 - 3
Supplement No. 98-]
11/98
..
City of Seward
4 Prior ordinance hi::;tory: Ord. 520, 1984; Drd. 610, 1988; Drd. 92-05.
7.05.115 Definitions.
For purposes of this chapter, the following terms defined have the meaning provided
below unless the context requires otherwise.
"Acquisition" meaDS to obtain ownership or interest in and to hold real property
within or outside the city boundaries by purchase, gift, donation, grant, dedication,
exchange. redemption, purchase or equity of redemption, operation of law, tax or lien
foreclosure, adverse possession, condemnation or declaration of taking, annexation, lease
or by any other lawful means of conveyances.
"City" means the city of Seward, Alaska.
"Disposition" means the transfer of city interest in real propelty by warranty or
quitclaim deed, easement, grant, pennit, license, deed of trust, mortgage, contract of sale
of real property, plat dedication, lease. tax deed, will, or any other lawful method or mode
of conveyance or grant.
"Encroachment" means any obstruction in, or intrusion into a deline.ated floodway,
right-of-way, easement, or public land or associated airspace.
"Essential terms and conditions" means a description of the real property involved;
the length or term of a lease; the sale. purchase or lease amount; any special deed
restrictions or covenants; and any special development requirement.;;.
"Fair market value" means the highest price. described in terms of money, which the
property would bring if exposed for sale for a reasonable time in the open market, with
a seller, willing but not forced to sell, and a buyer, willing but not forced to buy, both
being fully informed of all the purposes for which the property is best adapted or could
be used.
"Real properly interest" means any estate in land, including tide and submerged lands,
or improvements thereon. Rights-of-way, encroachments or easements wherein no
.,
7.05.110 Adoption of provisions and statutory authority.
These regulations are adopted by the city council pursuant to authority vested in that
body by the charter of the city and by the Alaska Land Act, AS 38.05.820, as amended.
COrd. 98-04)
Article 1. Generally4
7.05.610 Purpose.
7.05.615 Definitions.
7.05.620 Preference to upland owners.
7.05.625 Preference Right Application.
Article 5. Tidelands
..
. 7.05.115
PUBLIC PROPER'!'Y
~ 7.05.120
PUBLIC PROPERTY
warranties are made and title is not transferred are regarded as not involving the disposal
of a party's interest in real property; thus, the execution of such documents are exempt
from provisions of charter $i12.3 (b) and S 7.05.110, cl seq. of this chapter.
"Structure" means any improvement, constructed or erected on or attached to the
ground or another structure, including, but not limited to, awnings, refuse container racks,
towers, sheds, signs and fences.
"Submerged lands" means those lands covered by tidal waters between the line of
mean low water and seaward to a distance of three geographical miles, or as may hereafter
be properly claimed by the city.
"'Tidelands" means those lands which are periodically covered by tidal waters between
the elevation of mean high water and mean low water or arc contained within a recorded
Alaska Tideland Survey. (Ord. 98-04; Ord. 98-05)
...
7.05.120 Alternative means of real property acquisition or disposition.
The city council may acquire or dispose of interest in real property by negotiation,
public auction or sealed bid. (Ord. 98-04)
7.05.125 Public hearing and notice.
Prior to disposition or acquisition of a real property interest by negotiation, public
auction or sealed bid, a public hearing shall be held. Notice of the public hearing shall
be published in a newspaper of general circulation in the city and shall be posted in at
least three public places within the city. Both posting and publication shall be done at least
ten days prior to the hearing. (Drd. 98-04)
~
7.05.130 Terms and conditions to be made available.
The notice of puhlic hearing shaJJ indicate where the public may obtain the essential
terms and conditions of the proposed acquisition or disposition. A copy of the terms and
conditions shall be maintained for inspection at tbe office of the city clerk for at least ten
days prior to the hearing. (Ord. 98-04)
7.05.135 Authorizing resolution to approve terms and conditions.
At any time after the hearing required in 9 7.05.125, the council shall make a finding
in an authorizing resolution that the essential terms and' conditions and the method of
acquisition or disposition are in the public interest. (Ord. 98-04)
7.05.140 Posting copy of resolution.
Upon adoption of a resolution approving an acquisition or disposition, the cJty clerk
shall cause a true copy of same to be posed for at least thilty days in at least three public
places within the city. (Ord. 98-04)
7.05.145 Effectiveness of resolution.
Objections to a resolution approving a real property acquisition or disposition may
Supplement No. 98-1
11/98
City of Seward
.J
7-4
83
".
C,.ci
City of Seward
7-5
Supplement No. 98-]
11/98
,
7.05.160 Adjustment to fair market value.
A. Except as provided in R of this section, the rent under each lease of city property
shall be adjusted on July I, 1995, aud on July 1 of every fifth year thereafter during the
term of the lease, to the fair market rental value of the property as of the date of adjust-
ment. For each leased property subject to rent adjustment under this section, the city shall
obtain a fair market rental value appraisal as of the date of each rent adjustment.
B. Subsection A. of this section shall not apply to any lease of city property:
1. authorized before the effective date of this section, except to the extent that the
rent adjustment described in subsection A, of this section has been incorporated in the
terms of the lease;
2. for which the council finds that the public interest will be served by leasing the
property for less than appraised value; or
3. whose terms provide for adjustment of rent to fair market value more frequently
than every five years.
C. Nothing in this section extends the term of any lease of city property. (Drd. 98-04)
7.05.155 Notice of foreclosure sale.
Before property obtained through foreclosure may be sold, notice of such sale must
be sent by registered or certified mail to the last known address of the record owner at
the time the foreclosure action was initiated. The notice shall be mailed at least thirty days
prior to the effective date of sale. It shall contain the following information:
1. the time and date of sale;
2. the manner of sale;
L, 3. the place of sale; and
., 4. notice that until the effective time of sale the record owner has the right to
repurchase the property as provided by AS 29.45. (Ord. 98-04)
7.05.150 Appraisal,
A. The city shall not dispose of any real property interest without first making an
appraisal of the fair market value of that interest, unless the city council finds by resolution
that the public interest will not be served by an appraisal.
B. If an appraisal is made, the property interest shall not be disposed of for less than
the appraised fair market value, unless the city council finds by resolution that public
interest will be served by disposing of the property interest for less than the appraised fair
market value. (Ord. 98-04)
be made at any time until the resolution becomes effective. Unless rescinded or amended,
any resolution adopted under this chapter automatically becomes effective thirty days after
passage aud posting. (Ord. 98-04)
~ 7.05.160
PUBLIC PROPERTY
"
.,
PUBLIC PROPERTY
5 7.05.615
Article 5. TIdelands
7,05.610 Pnrpose.
These regulations implement, interpret and apply the provisions of the Alaska Land
Act concerning use and disposal of tide and submerged lands and related matters and
extend to and include the applicable provisions of Public Law 85-303. (Ord. 92-05)
.
7.05.615 Def'mitions.
For purposes of this article, the following terms shall be defmed as follows:
"Coast line" means the line of ordinary low water along that portion of the coast
which is in direct contact with the open sea and the line marking the seaward limit of
inland waters.
"Improvements and Substantial Pennanentlmprovements" means buildings, wharves,
piers, drydocks and other similar types of structures permanently fIxed to the tidelands
or contiguous submerged lands that were constructed andlor maintained by the applicant
for commercial, recreation, residential, or other beneficial uses or purposes. In no event
shall fill be considered a permanent improvement when placed on tidelands solely for the
purposes of disposing of waste or spoils. However, fill material actually utilized for
beneficial purposes by the applicant shall be considered a permanent improvement.
"Mean low or lower water" means the tide datum plane of the average ?f the low
tides as has been or may be established by the United States Coast and Geodetic Survey_
"Mean high tide" means the tidal datum plane of the average of all the high tides as
has been or may be established by the United States Coast and Geodetic Survey.
"Mean high water line" shall be interpreted as the intersection of the datum plane
of mean high water with the shore.
"Occupant" means any person as defined herein, or his successor in interest, who
actually occupied for any business, residential, or other beneficial purpose, tidelands, or
tidelands and submerged lands contiguous thereto, within the city, on or prior to January
3, 1959, with substantial permanent improvements. The holder of a permit of clearance
in respect to interference of navigation, or of a special use permit from a government
agency will not qualify as an "occupant" unless such entry on the land had, through
exercise of reasonable diligence, resulted in actual occupancy and substantial permanent
improvements as hereinafter mentioned. No person shall be considered an occupant by
reason of having (a) placed a fish trap in a position for operation or storage upon the tide,
shore, or submerged land; (b) placed a set net or piling thereof or any other device or
facility for taking of fish; (c) placed pilings or dolphins for log storage or other moorage;
(d) placed floats or vessels upon the tide, shore or submerged land; (e) placed telephone,
power or other transmission facilities, roads, trails or other improvements not requiring
exclusive use or possession of tide or contiguous submerged lands; or (f) claimed the land
by virtue of some form of constructive occupancy. Where land is occup.ied by a person
other than the owner of the improvements thereon, the owner of the improvements shall,
for the purposes of this defmition, be considered the occupant of such lands.
.
Supplement No. 98-1
11/98
City of Seward
7 - 8.1
85
(I,....
00
7-9
Supplement No. 97-1
07/97
.
City of Seward
"Occupied and developed" means the actual use, control, and occupancy, but not necessarily
residence, of the tide and contiguous submerged land by tbe establishmeut thereou of substantial
permanent improvements.
"Permit preference" means the privilege of the upland owner to acquire fIrst choice over other
non-preference right claimants to a pencil for like use and enjoyment of city owned tide or
contiguous submerged lands abutting his property.
"Person" means any person, finn. organization, cooperative association, partnership OT other
entity legally capable of owning land or an interest therein.
"PierlJead line" means the line fixed by the Department of the Army Corps of Engineers that
is parnIlel to the existing mean low tide line at such distance offshore from the mean low tide line
that the pierlJead line shall encompass, landward and no more, all stationary man-made structures
(but sban not encompass any part of breakwaten;, bridges, or piers used for vessel dockage which
part extends beyond such a parallel line marking the seaward extremity of other man-made
structures) which were in existence as of February 1, 1957, to seaward of the city.
"Preference Right" subject to the established classifications, means and includes the right of
an occupant to acquire by grant, purchase, or otherwise, at the election of the occupant, except
as otherwise limited or prescnbed in these regulations, any tract or tracts of tidelands, or tide and
submerged land contiguous thereto, occupied or developed by such occupant on and prior to
January 3, J 959.
"Preference Right, Class I" means a right claimed by persous who occupied and developed tide
and contiguous submerged lands seaward of the city on and prior to September 7, 1957, after
executing a waiver to the city and state of all right such occupant may have had pursuant to Public
Law 85-303. Upon execution of the waiver, such persons or their successors in interest have the
right to acquiru such occupied and developed tide and contiguous submerged lands from the city
for consideration not in excess of the cost of survey, transferring and conveying of title.
"Preference Right, Class II" means a right claimed by Class I Preference Right claimants who
decline to execUte a waiver to the slate and city of any rights such occupants may have acquired
pursuant to Public Law 85 303 (71 Stat. 623). I( shall be mandatory for the city to honor tbe
application from the occupant after the Secretary of the Army has submitted to the Secretary of
the Interior, the Governor of Alaska and the city manager, maps showing tl}e pierbead line
established by the Corps of Engineers with respect (0 the land claimed. Upou proof of such
occupancy, such persons have the right to acquire such tidelands and contiguous submerged lands
from the city for a consideration not in excess of the cost of survey, transferring and conveying
title.
"Preference Right, Class ill" means a right claimed by persons who occupied and developed
tidelands and contiguous submerged lands after September 7, 1957, and who continued to occupy
them on January 3, 1959. Upon proof of such occupancy, such persons have the right to acquire
such tidelands and contiguous submerged lands for a consideration not in excess of the cost of
appraisal, survey, administering and trnnsferring title, plus the appraised fair market value of the
land claimed, exclusive of any value accruing from improvements or development, such as fill
material, buildings or stmctures.
"Upland Owner" means that land owner whose upland property abuts the line of mean higb tide.
(OTd. 92-05)
5 7.05.615
pUBLIC PROPERTY
..
,
! 7.05.520
POllLIC PROPERTY
7.05.620 Preferenre to npland OWners. ...
Should the city decide to dispose of interest in any tide or submerged land, the city shall grant
to the owner of upland property .adjacent to said tide and submerged land a first preference to
acquire said interest over other applicantslbidders. The upland owner shall be notified by certified
mail or by a posting of a notice for three consecutive weeks of his right to exercise his preference.
The upland Owner shall then have ninety days to exercise this preference under this section. If
the preference is not exercised by the upland owner, then the city may dispose of the tide and
submerged land to others. It shall not be required that the city offer its tide and submerged lands
for disposal should the city detennine that it is Dot in its best interests to dispose of such land.
~ city may itself make such llse of its tide and submerged lands as it may consider in the public
interest without offering the tide and submerged lands to others. (Ord. 92-05)
7.05.625 Preference Rigbt Application.
An occupant claiming a Class I, Class IT, or Class m Preference Right may apply for
Preference Rights within two years from the effective date of the ordinance adopting these
regulations. Any Preference Right for which an application is not filed within this period sball
be fOlfeited. Completed applications shall be submitted to the city manager on forms supplied by
the city. (Ord. 92-05)
...
Supplement No. 97-1
07/97
7-10
Ory of Seward
""
(:'7
"
53
20
Port and Harbor TarifjRegulations
Revision Date: January 1, 2006
City a/Seward, Alaska
235 ASSISTANCE TO BOATERS AND OTHER AGENCIES FEES
(c) Failure to file. When an operator fails to liIe a return, or when the city manager finds that a retum filed by
an operator is not properly supported, the city manager may prepare and file a return on behalf of the operator.
Passenger fees estimated on a return filed on behalf oftbe operator may he premised upon any information that
is available to the city manager including, without limitation, comparative data for similar businesses. An
operator for whom an involuntary return is filed WIder this subsection shaH be liable for the passenger fees
stated on the return as welJ as any applicable penalties .and interest as stated in 230 (b).
(b) Filing o/forms and payment offees. Prior to Janwuy 1 of each year, operators of affected passenger
vessels shall complete a passenger fee registration form provided by the City. Passenger fees shaH be paid and
reported to tbe City monthly, on a form, and in a manner, provided by the City, within 30 calendar days ofllie
month following the month for which the fees are due. The City may require more or less frequent filing,
depending on the acCOlUlt status of the filer_ A return must be filed every period, even ifno transactions have
occwred. Failure to file a rehlm is subject to a missed filing fee of$25 for each missed filing. Failure to remit
all taxes collected or later found to be due by the due date, is subject to a penalty in the amount of 10% of the
amount owed, plus interest charged at the maximwn rate allowed by Jaw per year, compounded monthly.
(a) Fee. In addition to other twiITprovisions, the terms and conditions of this item apply and chargt:s are
assessed to passenger vessels, sport fishing vessels, guide and outfitter vessels, and all other vessels carrying
passengers fOr compensation. A passenger fee of $350 per passenger shall be paid for each passenger
embarking or disembarking a vessel at a City Dock, as such term is defmed in subsection 100 hereof. The
passenger fee is assessed once pt:T pa.'lsenger per excursion regardless of whcther the passenger excmsion is
one-way or JOWld-trip. As used in this subsection, "compensation" means payment to the vessel owner or
operator whether by charter or through fares paid by or on behalf of passengers. (Res2000-093)
PASSENGER FEES
230
1t
$ 40.00
(7) Reconnection after disconnect of delinquent accoWlt ..........................
...................................... $ 10.00
Dishonored check fee ..............................
(4)
(5)
(6)
Deposit .............................._. __......... _____.m................... ...... .______._......__ __ $}OO.QO
.'..."
Tampering with or unauthorized breaking ofmeh:rseal _... .........._................. $500.00 '~~
".
".
..............................'::c...".-. $J40_00
(3) Reconncction to approved existing meter;
installation outside regular business hours _
$ 20.00
Reconnection to approved existing meter installation during
regular business hours (8:00 a.m. - 5:00 p.m.) ...................:..~,..........__
(2)
$ 50.00
Meter test, each., when previous test oeC"uq-ed
within 24 months ............ ....... . . __............>-~".,...........................
(I)
225 (e) Miscellaneous Charges
,
S_l!.I25~gion
by the''ve~sel owner or his agent pursuant to federal, state and local (City of Seward) laws, codes and
ordinances~
h
DRAFT 04/12/06
SAAMS' VERSION:
FIFTH AMENDMENT TO
AGREEMENT FOR FINANCING, LEASE,
CONSTRUCTION, OPERATION, AND MAINTENANCE
OF THE ALASKA SEALIFE CENTER
TillS FIFfH AMENDMENT (the "Amendment") to the Agreement for
Financing, Lease, Construction, Operation, and Maintenance of the Alaska ScaLife Center datt:d
April 28, 1995. as amended (the "Agreement"), is dated as of , 2006, and is entered
into by and between the City of Seward, Alaska (the "City"), and the Seward Association for the
Advancement of Marine Science, d/b/a Alaska SeaLife Center, a.!l..AIaska Ih,npfIll"il corporation
("SAAMS").
WHEREAS, the City and SAAMS initially entered into the Agreement on
April 28, 1995, according to the terms of which the City leased to SAAMS, and SAAMS leased
from the City, property to be used for the construction and operation of the Alaska SeaLife
Center (the "Project"); and
WHEREAS, the City and SAAMS entered into the First Amendment to the
Agreement on May 1, 1996, the Second Amendment to the Agreement on March 26. 1997, the
Third Amendment to the Agreement on November 7, 1997, and the Fourth Amendment to the
Agreement on June 28, 1999; and
WHEREAS, the parties desire to amend the Agreement to include additional real
property under the terms of the Agreement; and
WHEREAS, the City is legally authorized to enter into this Amendment, and
SAAMS is legally authorized to enter into this Amendment.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants herein set forth. the parties hereby agree as follows:
1. DEFINITIONS. The following terms shall for all purposes of this
Amendment have the following meanings:
1.1'_ "Agreement" shall mean the Agreement for Financing. Lease,
Construction, Operation. and Maintenance of the Alaska SeaLife Center" dated April 28, 1995,
as amended.
1.2. "Amendment" shall mean this Fifth Amendment to the Agreement.
1.3. "Dock Surcharge" shall mean a charge as detennined from time to
time during the term of the Agreement by SAAMS and Qualified Vessel Operator as necessary
and sufficient to cover the financing, maintenance, transportation. storage, and insurance costs
related to the Floating Dock. The initial Dock Surcharge has been set at $3.50 per passenger.
FIFTH AMENDMENT TO AGREEMENT FON nNANC1NG, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THt: ALASKA SlfAUFE CENTER
89
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asdefmedillUloUly'.PortllrnIHar\xn"
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2
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASt;, CUNsnWCllON,
OPERATION, AND MAfNTENANCE OF TilE AlASKA SEAUFE CENJ'E,"R
2.2. Subject to Referel/dum. SAAMS understands and assumes the risk that
under the Charter and Code of the City of Seward. Alaska, Resolution No. 2006-
~ authorizing thisf\nwndnlcI1I,. ~y'be vo.i~~,~y referendu~._ SAMlS a~_
that if the Resolution is the subject of a valid referendum petition filed with the
Seward City Clerk, SAAMS shall have no rights or ()hli~;lti(\IlS under this
,t\r}lpldlll\:n,l_unlt?S~ _a1)4 up.til the~es()!u,tion is approved by the voters of the qty_
2.1. Effective Date and Term. This,;\mendment shall become effe~tive: ~pon_ ~e
effective date, in accordance with Resolution 2006-~ of the Seward City
Council, and continue for the remaining Term of the Agreement unless earlier
tenninated as provided in Section 3.12 and Section 8 of the Agreement.
2-TERM AND EFFECTIVE DATE.
1.12. All other capitalized terms in this Amendment shall have the same
meanings as set forth in the Agreement.
1.11. "Tour" shall mean the Alaska SeaLife Marine Tour operated by the
Qualified Vessel Operator, or such other name that may be determined hy SAAMS and the
Qualified Vessel Operator.
1.10. "Rent" shall mean the rental rate provided in Section 4.
.. 1.7. "Project" as described in Section ].1.26 of the Agreement is hereby
amended to include the Floating Dock.
1.8. "Property" as described in Section 1.1.30 of the Agreement is hereby
amended to include the tidelands area described on Exhibit A, attached hereto and incorporated
herein ('''ridelands Property").
1.9. "Qualified Vessel Operator" shall mean a company meeting all local,
state. and federal requirements that is engaged in the business of operating marine educational
tours on R~urrection Bay and who is granted a license and concession by SAAMS to plan.
engineer, construct, transport, install, situate, secure, equip, repair, refurbish. own ami operate
the Floating Dock and conduct the Tour.
U\,. "Other Qualified User" shall mean a company meeting all local, state,
and federal requirements Jll.._engage,. in the business of operating waterborne sightseeing tours
from Seward and who complies with all the requirements set out in this Amendment.
1.~ "Floating Dock" shall mean the floating dock, gangway. supports,
utilities, ladders, fire and safety equipment and all equipment necessary and proper for their use.
The Floating Dock shall be a private dock located on III<: i'i"lI'l'I; y"
1.4 .'Ffkcllvc' Il:ilc'- :11;dl 1II,~;I,; !;'I' _JJU_ I ,Ji'l:t:I,ivl:,iliilt:_.J~l
l{c~(_)ll!lilJll No. 200(,- ib...!Jltllallv 1:ll;k-lcd,^~l-y_Jl~_~-,-'0,:,llri f il\ ,"llIIWil. ;111\1 (iij Ihe lLiJC,,'c!
,'Cllific;l1i'lIl ()f Ihe rL'~ulh {II :1 l.ch-lTn,III_I!L__(:,I,~dl')11 ;IP!).II)\'_i.n::',Ylc':~_),WJJ.!.!.~---,-~. 2(j()J~_,----,1
1<(;~(,~L\HhJll NIl. 200(J- j-'iJ!lf_.~!lJ)i(;'l't..~~L;] ';uH!Q.!:.llLi!!!!..UiLl_I_,-,ly ,IIJ!~rl_:__nilll_!II_ pel i I illll.
DRAFT 04112/06
DRAFT 04/12/06
of Seward, and SAAMS shall not be entitled to any damages or any other relief
against the City in thc event the Resolution is not so approved.
3. TiDELANDS.
3.1. Tidelands Accepted "As-is." SAAMS acknowledges that it has inspected the
Tidelands l'rol1t:_ULand accepts the same "as is" and without reliance on any
expressed or implied representations or warranties of the City, or agents of the
City, as to the actual physical condition or characteristics thereof, including but
not limited to Ihe description of the,Tidelands Pn)l)Cnv herein.
3.2. Survev of TiddW1(I\' Pm(!nll' { Within ninety (90) days from the I:'"Hective
.!).ate of this f-mcndmt:!!1, _ SAAMS, at its sole cost, will cause the Tidelands
Pwp';:rtv ,to-be sUrVeyed- by a 'land sUrveyo-r-registered In the State of Alaska. A-
copy of the drawing and depiction of the Tidelands Pronerty-based upon this
survey shall be attached to this,/\\JleI\Jml~nt a.'l Exhibit Band incofPl?rated herein
by reference. The description - or' the Tideiands prnllf.llLin Exhibit B --shall
supersede the description in Exhibit A, and shall be considered the correct
description of the Tidelands ProDcrtv for all purposes under this .j\Irll;~ndment.
SAAMS shall provide the City a copy of any and all surveys within ten (10) days
of SAAMS' receipt of any and al1 surveys. The City shall have the right to
comment upon any and all surveys, but the exercise of this right shall not imply
any obligation to do so or any obligation to do so in any particular way. If the
City objects to the surveyor's conclusions in the survey, the City may give written
notice to SAAMS of the City's objection within thirty (30) days of receipt of the
survey. The City shall then engage a second land surveyor registered in the State
of Alaska at the City's expense, to make a second survey of the Tidelands
D:opertV. City shall provide SAAMS a copy of the second survey within ten (10)
days of City's receipt of the second survey. Unless the City and SAAMS agree
which survey is acceptable, the acceptable survey shall be determined hy
arbilration_ unuer the conunercwl arhitration rLlle~ _or the ^me-rican Arbitration
^ssocia!io!J,ru
3.3. Future Replatting. In the event the City elects to replat Citv -owl1(;d real
p['(merty adiw.;ent to the Tidelitnds l'n)Pl..:llY. the City agrees to include the
Tidelands Property in such replat. If SAAMS requests a replat of the Tidelands
PropclJLprior to that time, the City shall assist SAAMS in the preparation of and
filing of the replat and SAAMS shall reimburse the City for the City's direct costs
in assisting in the preparation and filing of the replat. SAAMS agrees to sign the
plat and any other documents necessary to complete the 1l1attin!! 'pr replatting of
any area including all or a portion of the Tidelands Property. SAAMS shall
accept reasonable restrictions, easements, or plat note.~ as may be required by the
City or other governmental authorities as a condition to record the plat of the
Tidelands Property or the plat of City-owned real property adjacent to the
Tidelands Pronertv.
4_RENTALRATE
FIFTll AMI:.'NDMFNf TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION. AND MAINTENANCE OF THE ALASKA SUUFE CENTER
(: C1
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'[De&ebJdlsuchadjusted
,[DeII11a:1:.""OO:lingIOUlOarbil1aliOO
provisions ClOtIllIiocd in the Agreemenl
o.Iabd: noli"" of objco:tion. If
SAAMSobi""lOlOtheapprlli='S
de1etmlnation otlhe Fair Markel Value,
SAAMS slIaIl give
lDd~;'~~A;~------l
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--------~
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4
FIFTH AMENDMENT TO AGREEMENT FOR FINANClNG, LEASE, CON~TRUC110N,
OPJ::RATLON, AND MAINTENANCE OF THE ALASKA SEAUFE CENTER
4.4. Effect of Late Appraisal by City. If. for any reason, City does not complete
the appraisal of the Tidelands Property or delivery a copy of the appraisal report
to the SAAMS ninety (90) days before the Rental Adjustment Date, City may
proceed to complete the appraisal or deliver a copy of the appraisal report to
SAAMS at any time thereafter. However. any rC~lIltillJ~ tlditl~!l1Ierlll() !llt~Jl!I~1!-~_
rental rate shall not be effective until the first quarterly rental payment due date
If the second appraisal determines a Fair Market Value that varies from that
determined hy the first appraisal by no more than twenty percent (20%). then the
adjusted Rent shall be the average of the rental rates determined by the appraisals.
If the second appraisal determines a Fair Market Value that varies from the fmt
appraisal by more than twenty percent (20%), then, unless the City and SAAMS
agree on a rate themselves, the Fair Market Value and the adjusted annual rental
rate of the Tidelands Property shall be detennilled by arbitration 1I nde!" the
l'(lmmerciill arbitrathm fllJl:\DI" lhl: American Arhitnltlol1 Association.
4.3 Procedure for Rental Adiustment. The appraiser's determination of the Fair
Market Value of the Tidelands Property under Section 4.2 shall constitute a final
binding determination of the Fair Market Value and the adjusted annual Rent until
the next Rental Adjustment Date, unless SAAMS gives .\'{fit~.n_llQt!~ JQ .:tl!e. qty
of its objection lu the apllmiser's dctcrminatiull within thirty (30) days of receipt
of the appraiser's report. and SAAMS shall than engage a second independent
MAI~certified appraiser at SAAMS' expense to make a second appraisal of the
Fair Market Value in accordance with Section 4.2.
4.2. Rental Adiusmlents. The annual Rent for the Tidelands Property shall be
adjusted on July 1,2010, and on the same date every five years thereafter (each a
"Rental Adjustment Date"). The adjusted annual Rent to be paid under this
,Amendment shall he eight percent (8%), subject to future adjuSbnent by the
Seward City Council at any time during the Tenn of this Agreement. of the
appraised Fair Market Value of the Tidelands Property at the highest and best use
of the Tidelwuls Property. The City shall. at its own expense, retain an
independent MAl-certified apprai&eT, who shall determine the "Fair Market
Value" of the Tidelands Property, exclusive of improvements placed thereon by
SAAMS but inclusive of all improvements made by the City (including those
made befure or subsequent to this Agreement). assuming the highest and best use
of the Tidelands Property. The City shall complete such appraisal and deliver a
copy of the appraisal report to SAAMS not less than ninety (90) days before the
Rental Adjustment Date
4.1. Initial Rental Rate. Commencing on the ljfective !J;lte,. the)nitia} a!lnual
Rent for the Tidelands Property shall be $8,000. The Rent shall be payable
quarterly in advance upon the Lffec~ve_D.at.e.and thereafter on or before the 20lh
day of the first month of each calendar quarter: January 20, April 20, July 20, and
October 20. The amount of each quarterly payment shall be one-quarter (1/4) of
the annual Rent as initially established or later adjusted under Section 4.2 pf.t~is
Amendment.
DRAFT 04112/06
DRAFT 04112106
that is immediately following the date the City delivers the appraisal report to
SAAMS.
4.5. Effective Date of Adjusted Rental Rate. The adjusted annual Rental Rate for
the Tidelands I'ropnlyshall apply as of the Rental Adjusunent Date if the City
provided a copy of the appraisal report to SAAMS ninety (90) days before the
Rental Adjustmenl Date. If the adjusted annual rental rate is based on City's late
appraisal or late delivery of the appraisal report to SAAMS, 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 SAAMS.
Notwithstanding the above, the exercise of the objection procedure relating to
rental adjustment shall not postpone SAAMS' obligation to pay rent at the rate
established by the City. SAAMS shall pay the amount of rent as established or
adjusted by the City until the question of objection to the rental rate is finally
resolved. At such time as the objection to the rental rate is resolved, an
appropriate credit or adjusunent shall be made retroactive to the date the new
Rent was established by the City or in cases where the City failed to obtain an
appraisal or deliver the appraisal report to SAAMS, to the Rental Adjustment
Date.
~.6.- Effect;ve Date afChange in Percentage of Fair Market Value. If the Seward..
City Council at any time elects to modify the percentage of Fair Market Value
that is used to determine the annual Rent tn a percentage other than 8%, that rate
change will take effect beginning with the quarterly rental payment due date
immediately following the effective date of the Resolution which modifies the 8%
rnte.
4.1,.__ La~eJ!qY-ff!l!nt Charge. Rental P<lym~I!~ !I!J! ~~iy~ _by"lJ1t: _d!lt: _~_ s_h_all
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 as authorized in the City's fee schedule, 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
5. Use of Tidelands Prooertv. The City has limited land available for use. Use of the
Tideland'! Property for a floating dock facility has been detennined by the City Council to
be in the public interest. SAAMS' use of the Tidelands Property is restricted to the
following use:
5.1. Purpose. To provide for a seasonal Tour of Resurrection Bay aboard a
vessel departing from the Alaska SeaLife Center that will complement the
educational experience of visitors to the Alaska SeaLife Center. The Tour will be
conducted from the Floating Dock connected to existing shoreside improvements
on the Property that will be used by passengers to embark and disembark from
vessels on the Tour. SAAMS ,shall construct, own, furnish. maintain, operate. and
manage the Floating Dock, or shall calise: the \<lIIH': tll be JOl1e hv a Oualified
V essel np_~ral.ur. No sales of any kind shall occur on the Roating Dock.
FIFTH AMENDMEfrffTO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION.
OPERATION, AND MAINTENANCE OF THE ALASKA SlfAUFE CENTER
'-'3
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CGmment[.l]; Page: 5
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published by the United SlalcS
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6
FIFTH AMENDMENFTOAGREEMENT FOR FINANCING. LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF 1'HE ALASKA SEAUFE CENTER
6. Performance and Payment Bonds. SAAMS shall require any general
contractor it employs or any general contractor employed by Qualified Vessel
Operator to obtain perfonnance and payment bonds in the amount of the contract
price, and in the customary fonn, and furnish such bonds to the City prior to
commencement of construction; provided that if the cost of the work is less than
$50,000, SAAMS may require in lieu of perfonnance and payment bonds, another
fonn of pelfonnance guaranty acceptable to the City. Copies of all such bonds
5.4.5. As~built Surveys. On completion of the improvements, SAAMS
shall provide the City a copy of an as-built survey depicting the Floating
Dock as completed.
5.4.4. Plans and Soeciflcatlons. SAAMS has supplied the City with a
copy of ~!l~l!U:.c~9!l_pJ~"-s_ ~~_ ~~!fic!l~iQl!s <in,d: a site plan for the
Tidelands Property and Floating DoCk,_3S sbow!1_()n _a~~ched Exhibit C.
The site development plan is considered an essential terrrl and condition.--
Any material changes to the approved site plan :i!E-!l!jJe ~lIbjeo..:t \l!_approvilL
by the City. which :lPlmwal sh!!lLnut he 1I11Ie:J,>onuhly wi!hltel9,.. ." "
5.4.2. Cost of Construction. The cost of any such construction,
reconstruction, demolition, or of any changes, alterations or improvements
shall be borne and paid for by the Qualified Vessel Operator.
5.4.3. Methanic and Materialmen's Liens. The Tidelands Property shall
at all times be kept free of mechanics' and materialmen's liens.
5.3. Passenger Fees. The City Council finds that Ihe Dod SLlIChw-!!(' imnoseJ
hY-5AAMS tr)r the lI\C Ill' .,thi_spri,vate dock facility. hi!'> Lilc cITccL oj' F~im_ina~llil:. f.
any potential competitive advantage for any user of the Floating Dock, over users
of the City's municipal docks. TI1erdorL~" the ll~:(, -'.!LJ!:!LL!!];I1II1{!__L)f!(:~_,~Jl!~ILI1,}1
be suhiect !O .lnV .passenger f~ that mil\' he ,adopted from time to time in the
City's Port and Harbor Tariff. .
5.4. Ownership of Dock. SAN"I,') an,1 t,l1e QualifiedYe.s~I_D.Re!"a1Q~~h.a!I__~ay~_
the right and the responsibility to own, furnish, maintain, operate, and manage the
Floating Dock on the Tidelands Property subject to the following conditions:
5.4.1. Deadline for Constmction. SAAMS shall cause the Floating Dock
to be constrncted on and/or furnished to the Tidelands Property by June 1,
2007.
5.2. Dock Condition. SAAMS shall at all times, cause the Floating Dock to be
maintained in good condition and repair, and in so doing, shall keep it clean and
clear of unnecessary potential hazards that may develop as a result of SAAMS
operations, or those of its agents, officers, employees, customers, or contractors.
SAAMS acknowledges that weather and sea conditions may impact use and
maintenance requirements of the Floating Dock.
DRAFT 04/12/06
DRAFT04/121D6
shall be furnished to the City at least ten (10) working days prior to
commencement of construction.
7. Notice of Non~resDonsibilitv. The City may, as contemplated by Alaska
Statues, give notice of non-responsibility for any improvements constructed or
effected by SAAMS on the Tidelands Property.
8. City Review of Construction. The City shall have the right to review initial
plans, including those supplied to the City under Section 5.4.4 above, and any
future changes or additions to SAAMS' facilities on the Tidelands Property by
reviewing the design thereof prior to the commencement of construction. The
City shall have the right to comment on upon that design and require SAAMS 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. SAAMS shall require the Floating Dock
to be constructed in accordance with the final design specifications reviewed hy
the City. The City's representatives may monitor the work and shall have access
tu the Tidelands Property at all reasonable times. SAAMS shall be solely
responsible for completing all improvements in accordance with SAAMS' and
Qualified Vessel Operator's plans and specifications and shall bear all risk,
responsibility, and liability for properly surveying the Tidelands Property before
construction and placing all improvements on the Tidelands Property without
encroaching upon any easements, rights-of-way, or setback requirements.
9. Permits and ReDOrtlne bv Other Governmental Aeencies. SAAMS, at its
sole cost, shall obtain all permits necessary to the construction. SAAMS hn.:.~
provideQ!:!..i:.QJ2.Y.Pf the AnTIV Corps.()rl,ing!~e~rs_l~<:r~l1.il f()!" _~I_le_ FI~)!ltj[~l!_ D_()~~, _!-9__
the Cityi and will nrovide an\' amendment~ tUlh,lt nermit hl the City as they are
rCC_t;iVclj fn1l1l__.tim.!.:__ to tim,io SAAMS shall complY,_l!1!d__s_h!d!re.~i~ .I!l_
compliance during the term of the Ab'Teement, with all stipulations, requirements,
and conditions, within its power to perform, of any permit of any governmental
agency having jurisdiction with regard to the Tidelands Property and Floating
Dock. SAAMS 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 spiii or discharge of Hazardous Material. SAAMS accepts all risk
and responsibility for trash collection, waste oil collcl.:tion and compliance with
all laws, regulations and ordinances applicable to the Tidelands Property and
Floating Dock.
In the event the City or SAAMS receives notification from a federal or state
environmental agency with regard to SAAMS' failure to comply with
requirements to acquire necessary permits, or to comply with specific permit
provisiuns, SAAMS shall have 30 days from the date of such notice to cure such
non-compliance. Failure to cure within 30 days shall be cause for the city
manager to order SAAMS to inunediately cease any operations or activities on the
Tidelands. SAAMS has the sole responsibility to immediately provide City with
copies of all correspondence and notices of all reports between SAAMS and any
FIFTH AMENDMEfIff TO AGREEMEfIff FOR FINANCING, LEASE. CONSTRUCTION,
OPERATION, AND MAlflffENANCE OF THE ALASKA SEAUFE CENTER
7
95
{~:8IlLl.r.a1] ]
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8
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING, LEASE, CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THE ALASKA SEAUf'E CENTER
11.3. Comprehensive Automobile Llabllitv. Comprehensive
automohile liability insurance covering all owned. hired. and non-owned
1l.1. Marine Protection and Indemnitv. Marine protection and
indemnity insurance, with limits of liability not less than $5,000.000 for
all injuries, death. and property damage per occurrenceJaggregate.
11.2. Commercial General Liabilitv. Commercial general liability
insurance, with limits of liability not less than $5,000,000 per occurrence
and $6.000,000 aggregate for all injuries, death. and property damage.
11. Insurance Roouirements. frior to the use of the Floating Dock, S~
and 1I1lY Qualified Vessel Operatot; .shall furnish the City, ~ith certificates 'of'
insurance evidencing:
10. Utilities. SAAMS, at SAAMS' sole cost and expense, may provide for
the extension of public utilities to the Tideland.., sufficient for SAAMS' intended
operations. In so doing. SAAMS shall comply with all City regulations and
requirements and the tariffs of the affected utilities, with respect to the
construction of those utilities. The City agrees to cooperate and assist SAAMS in
SAAMS' planning and engineering of those improvements. All construction will
be in compliance with the International Building Code and other codes of
technical regulation as adopted by the City. Utilities constructed by SAAMS
within the public rights-of-way or within public utility easements that will
nonually be accepted and maintained by the City or utility companies may be
used to serve other customers of the utility without payment of fees or
reimbursement of construction cost to SAAMS. However, this does not preclude
several customers from agreeing to share the cost of constructing a utility to serve
their facilities. The City or other utility company may determine that it would be
to their benefit to oversize the utility or install special fiuings or equipment in
order 10 serve other existing or future users. The additional costs of such
oversizing shall be borne by the City or other utility company. Such costs shall be
limited to the supplier's cost of the additional fittings, equipment, direct labor,
and 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 the City or utility company.
SAAMS shall not be entitled to any refund, rebate, or payments from City for any
rent, investment, or costs incurred by SAAMS with respect to any required
permits for construction or operation of facilities on the Tidelands, it being the
intent of the parties that the cost and risk of obtaining required pennits be solely
costs and risks assumed by SAAMS,
state, federal or local government or agency which relales to the operations by
SAAMS, a Qualified Vessel Operator, or an Olher Qualified User, on or use of
the Tidelands or the Floating Dock.
DRAFT 04112/06
DRAFT 04112/06
vehicles with limits of liability not less than $5,000,000 combined single
limits per occurrence.
11.4. Worker's Compensation Insurance. Worker's compensation
insurance as required by Alaska law. The coverage must include
employer liability protection not less than $1,{)OO,ooo per person,
$1,000,000 per occurrence. Where applicable, coverage for all federdl
acts (i.e., U.S.L. & H. and Jones Act) also must be included.
11.5. Pollution Liabllltv Insurance. Envimnmental liability or
pollution legal liability insurance for all bodily injury and property
damage to parties other than SAAMS, Qualified Vessel Operator, or any
Other Qualified User, caused by pollution at or emanating from a tour
vessel, with limits of liability not less than $1,000,000 per
occurrence/aggregate.
11.6. Insurance Policy Reauirements. All insurance polices shall
provide for 30 days' notice of cancellation andlor material change to be
sent to City, SAAMS, and Qualified Vessel Operator. All such polices
shall be written by insurance companies legally authorized or licensed to
do business in the State of Alaska, and acceptable to SAAMS. its Operator
and the City (Best's Rating A- or better). SAAMS" ,1I~d. .an\' QlI:~if1..~
Vessel Operata!;, shall. fU!1!is~ _th.e. 9jty!.~t:ti.ficl).~ _eyid.e:!lcing that they
have procured the insurance required herein prior to entering upon the
Floating Dock facility or conunencing any tour activity.
11.7. Suboo2ation Ri2hts Waived. All of the insurance polices
required above ~ball provid~.. ~h~~ ..tI1l? _ i_n~l!f~rs_ .~a!,:,~. JI1~ir. ..r!gh~. of
subrogation against the City. its respective officers. servants. agents or
employees. SAAM~}:t Qu~!ifi~ Y~s~~l_ 9lx.lra~r~j~~r ~gree to .
waive and agree to have their insurers waive any rights of subrogation
(whether by loan receipts, equitable assignment or otherwise), with respect
to deductibles under such polices and with respect to damage to equipment
including the loss of use thereof, whether insured or not. SAAMS,._U~l~u
Qualified Vessel Operators, shall also naTJ1~_tll~ .City ~ .an_ !l4diti9l}l!1.
insured on the marine protection and indemnity, commercial general
liability and comprehensive automobile liability insurance polices
maintained by SAAMS,.al}!LQualified Vessel OperatorsJ1S required above,
excluding coverage for claims resulting from the sole negligence or willful
acts or omissions of the City. its agents, employees or contTactors.
11.8. Indemnltv. SAAM~,ln1.Qualified Vessel O~rators,shall defend.
indemnify and hol<fthe -Ciiy. hli.:mless from any'and alflllihilltY' or -dmins
for damages, including personal injuries, death and property damage,
arising out of or resulting from the operation its tours or use of the
Floating Dock by SAAMS, and Qualified Vessel Operators, J-heir agents,
employees or contactors, and'the public, 'except 'for' d:images arising -ffOmu
FIFTll AMENDMENrTOAGREEMENT FOR FINANCING, LEASE, CONSTRUCTION.
OPERATION, AND MAINTENANCE OF THl' ALASKA SEAUFE CENTER
iJ7
~-m. ]
[DeIeted:.andOlbtrQ\lalifledUsen J
-----
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9
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Deleted;.tbePassenserFee.
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83
10
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING. LEASE, CONSTRUCTION.
OPERATION. AND MAINTENANCJ<.; OF 1HE ALASKA SEAUFE CENTER
14, Insurance. SAAMS shall include the Tideland~ Property as insured
property under the existing insurance policies covering the Property and the
Project. The City will !]l;: added as an additional named insured with waiver of
subrogatiQn in_ favor of the City on atl insurance reauired to be obtained and
maintained by the Oualified Vessel Ooerator.l_5_ Comoliance with Laws.
SAAMS shall comply with all laws concerning the Tidelands Property,
13. Remedies for SAAMS Default, Section 8.2,1 of the Agreement, concerning
remedies of the City on SAAMS' default, is amended to read as follows:
13.1. Termination. Terminate this Agreement and the rights created
herein by giving notice of such election to SAAMS; provided, however,
that if a SAAMS Event of Default pertains only to the Tidelands Property.
the City's termination shall be confined to SAAMS' leasehold on the
Tidelands Property.
12.1. Failure by SAAMS lo construct, in accordance with Article 6
hereof, a Floating Dock on the Tidelands Property by June 1, 2007.
12.2. Failure by SAAMS to have the property surveyed in accordance
with Article 3 hereof.
ll.- OtlH'r Qualified lJ:1cr~, :3/\ i\ M,r; ;iih_! (h,.liirioi \'t:';Sc! OI'L~rat()r shall
make a lc;llslIllabk cHul1 1" dCCIJlllIIHJ(,I,ll' 011"':..iJl!.d01\',1 I!<;cp: dC~!.!l!lf~Jn IISC
(he F!oU(IIll! Docie SUl;h LIS,' shelll h,--~ (In ",:lvil"I.",; 1':1'1'. ()lllY:":I!)d ill accnl-U:1LL~,l;
with su<.:h reasol1;lhlc lerm~ al1d l'lllll!irr~)ll\ .ilS, dl'l\:rlllimxl !ii' SAAMS nlld
Qualified Vessel Upel';lrnL PI'im__U)lh~: 11:,C _~)I'IIIL: Ho:.!(irllJ Duck. ;lIlY Other
Oualified Users2ih:lll fumi:;Jub_c Ci(v \\illli i...:eI1il'ic"l<-~s of insurallce eviderH,:iIH! the
Ln--,,--Ilyant:c COVCI,_Il'-t: n~qu,red i'l :';cctiull ! 1_ SAAMS and Qualified Vessel
Operator are permitted to charge Other Qualified Users for their use of the
Floating Dock at any time during the term of this Agreement. The User Fee shall
be a charge in addition to the Dock Surcharg~and the Qualified Vessel Operator's
per-passenger fee to SAAMS ,ilDd is_jn~r.a~ed !<~ _C9~p~!lsate s.~s. a_n!!__
Qualified Vessel Operator for their mainlcnance, and operation expenses, plus a
reasonable return on their invesbnent, but in no event shall the User Fee exceed
$5,(1) per passenger.
12. Events of Default. The following shall be considered additional Events of
Default under the Agreement:
11.9. Good Standilll!. Qualified Vessel Operator ,shall be in good
standing and compliance with other terms and conditions as determined by
SAAMS for use of the Floating Dock.
the sole negligence or willful acts or omissions of the City, its agents,
employees or contractors, If any action or proceeding is brought against
the City. SAAM8. illjti _Q~a1ified Vessel ()pera19";' shall notify th~ qty
promptly in writing of such action or proceeding.
DRAFT 04/12106
DRAFT 04112/06
16. Consent. Aooroval Except as may have already been obtained, no
consent, approval. permission, authorization, order or license of any governmental
authority, is required to be obtained by the City for the execution and delivery of
this Amendment.
17. No Restrictions on AlZreement. The City and SAAMS are not subject to
any charter, ordinance, contractual limitation. or provision of any nature
whatsoever which in any way limits, restricts, or prevents the City and SAAMS
from entering into this Amendment or from performing any of its obligations
hereunder.
18, SAAMS' Reoresentations.
18.1. SAAMS is a non-profit corporation in good standing under the laws
of the State of Ala.'lka,
18.2. SAAMS has full corporate power and authority to enter into this
Amendment.
18.3, SAAMS' obligations and performance under this Amendment will
not affect its status as non-profit corporation under any State or Federal
laws or regulations,
18.4 Consent. Attached is a resolution duly adopted by the SAAMS
board of directors authorizing the undersigned to execute and deliver this
..0-I)J~ndl!J~llt_ O!,- _ ~half_ (If _S_~~~_ _a!,-~s~.~ng. _u1)-equi~~.IY . th~~. .!1(l
consent or approyal of any other person is required to be obtained by
SAAMS for the execution, delivery, and perfonnance by SAAMS of this
Amendment, and this...Amendm(~nt constitutes a valid and legally binding
obligation of SAAMS, enforceable in acconlance with its terms,
19. Other Terms of AlU'eement. All terms and conditions under the
Agreement as pertaining to the Property and the Project shall be applicable to the
Tidelands Property.
20. Integration and Modification. The Agreement and the amendments
thereto, including this Amendment, contain the entire agreement of the parties
hereto with respect to the subject matter hereof. All negotiations. statements, or
representations, warranties, and assurances, whether oral or written. which are in
any way related to the subject matter of the Agreement and this Amendment, and
the perfonnance by either party hereto. are merged and integrated into the terms
of the Agreement. as amended by this document. The Agreement may not be
modified or amended except by a writing signed by both parties hereto, and any
proposed amendment or modification is without effect until reduced to a writing
signed by both parties.
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING. LEASE, CONSTRUCfION.
OPERATION. AND MAINTENANCE OF THE ALASKA SEAUFE CENTER
11
83
{ Deletedl L:.... AmenclmcnI______ ]
[DeI.....lL:IISCAmendmenl )
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1 ,".
.i.U0
12
FIFTH AMENDMENT TO AGREEMENT FOR FINANCING. LEASE, CONSTRUCTION.
OPERATION, AND MAINTENANCE. OF THE ALASKA SEAUFE CENTER
City Clerk
City of Seward, Ala.'lka
A TI'EST:
By:
Its:
CITY OF SEWARD, ALASKA
CITY:
By:,
Its:
SEWARD ASSOCIATION FOR THE
ADVANCEMENT OF MARINE SCIENCE
SAAMS:
IN WITNESS WHEREOF the parties have executed this Amendment effective as
of the date first above written,
DRAFT 04112/06
CITY OF SEWARD, ALASKA
RESOLUTION 2006-40
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th
day of April, 2006.
THE CITY OF SEWARD, ALASKA
Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Jean Lewis, CMC
City Clerk
(City Seal)
.. I ,3.
.Lv
DRAFT 04/12/06
EXHIBIT A
DESCRIPTION OF TIDELANDS PROPERTY
A parcel of real property consisting of submerged lands, within Alaska Tideland Survey 174;
said parcel commcncing at the northwest corner of the former Alaska Heritage Tours Dock Site,
thence S44059'02"E, a distance of 431.73 feet to the Director's Line ATS 174; thence
N42"45'OQ"E, a distance of 295,06 feet along said Director's Line; thence Nn"53'53'W a
distance of 497.81 feet; thence S27"13'23''W, a distance of 66.88 feet, to the true point of
beginning, containing 79,541 square feet, more or less.
FInH AMENDMENT TO AGREEMENt FOR FINANCING, [F.ASE, CONSTRUCTION.
OPf'RA nON. AND MAINTENANCE OF THE ALASKA SEAUFE CliNTER
EXHIBIT A
... .-.....
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.... ,) '-
Section 3, The city manager of the City of Seward is authorized and directed to take any and
all steps necessary to execute Participation Agreement Amendment No, 9 between the City of
Seward, and the State of Alaska, Department of Administration,
Section 2, The City Council of the City of Seward (182) hereby excludes the position of
Chief of Police from participation in the Public Employees' Retirement System.
Section 1, The City Council of the City of Seward (182) hereby excludes seasonal
employees (as defined by SCC 3.01.035(R)) from participation in the Public Employees' Retirement
System.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
WHEREAS, an amendment to the PERS Agreement requires a Resolution by Council,
requesting specific modifications to the Agreement, and this Amendment represents the ninth
Amendment to the Agreement.
WHEREAS, the City further desires to exclude the position of Chief of Police from
participation in PRRS, based on the sunset provision of HB242 passed by the Alaska State
Legislature in 2005; and
WHEREAS, PERS audits have resulted in recommendations that the City specifically amend
the Agreement with PERS to exclude from participation the City's seasonal employees as defined in
Seward City Code 3.01.035(R), in order to clarifY that the City has not and does not cover seasonal
employees under the PERS program; and
WHEREAS, the Seward City Council has amended the Agreement eight times sinee the
original agreement was approved, for the purpose of including or excluding specific classes of
employees from participation in PERS; and
WHEREAS, the City of Seward ("City") and the State of Alaska entered into an agreement
("Agreement") relating to participation by the City in the Public Employees' Retirement System of
Alaska ("PERS"), beginning January 1, 1979; and
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING THE PARTICIPATION AGREEMENT WITH THE
PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS), TO EXCLUDE
SEASONAL EMPLOYEES AND TIlE CHIEF OF POLICE FROM
PARTICIPATION
CITY OF SEWARD, ALASKA
RESOLUTION 2006-40
Sponsored by: Corbridge
COUNCIL AGENDA STATEMENT
Meeting Date:
April 24, 2006
Clark Corbridge, City Manager O?.vl 4-IQ - Of,
Kristin Erchinger, Finance Director iflIv
Through:
From:
Subject:
Elimination of PERS coverage for seasonal
employees and the Chief of Police position
BACKGROUND & JUSTIFICA nON
The City of Seward entered into an agreement with the State of Alaska to cover eligible municipal
employees in the Public Employees Retirement System, beginning January 1, 1979. Since that time,
the Agreement has been amended nine times, to include or exclude specific classes of participants.
The administration proposes to exclude two classes of employees from PERS coverage, seasonal
employees and the position of Chief of Police. The City has never covered seasonal employees
under PERS, but because the City's definition of seasonal employees is slightly different than the
State's definition, we propose an amendment to explicitly state that seasonal employees as defined
by Seward City Code, are explicitly excluded from coverage under PERS.
We further recommend excluding the position of Chief of Police from PERS. The current Chief was
hired under the State's rehired retiree program, approved in 2001 by House Bill 242 ("HB242"). The
provisions of HB242 are slated to sunset at the end of 2006. HB242 authorized an employment
waiver for PERS retirees to re-enter the workforce without accruing additional PERS benefits,
resulting in a cost savings to the City of not having to pay PERS contributions for this position. By
excluding this position from participation in PERS, the City will not pay PERS contributions for this
position, and the Chief will continue his employment unaffected by the sunset provision ofHB242.
CONSISTENCY CHECKLIST:
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable
Yes
No
--.X
FISCAL NOTE:
This resolution will result in a savings to the Cityof$11,700 from the 2006 Budget. The City does
not currently pay PERS contributions on behalf of seasonal employees or the Chief of Police
position, However, if the City does not exclude the Chief of Police position from coverage, the City
will pay PERS contributions on beh f of this position, of approximately $11,700 per year.
Approved by Finance Department -'-
RECOMMENDATION:
Council approve Resolution 2006-~excluding seasonal employees and the Chief of Police from
participation in the Public Employees Retirement System, and execute PERS Amendment 9.
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Vanta Shafer, Mayor
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THE CITY OF SEWARD, ALASKA
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th
day of April, 2006.
Section 2. This resolution shall take effect immediately upon adoption.
Section 1. The City Council of the City of Seward hereby authorizes an appropriation in the
amount of $165,150 for the purchase of hospital capital equipment, from the General Fund fund
balance account no. 101-??oo-3050 to the Contributions Pass Through account no, 101-1191-5998
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
WHEREAS, it is important that the City support the timely replacement of equipment to
reduce the likelihood of problems associated with the use of technologically obsolete equipment, and
since the hospital is not yet in a position to fund signiticant capital needs and therefore requests
funding from the City of Seward.
WHEREAS, the revised list includes replacement of an ultrasound machine, and purchase of
a bisphasic defibrillator and highllow exam table, with a total cost of $165,150; and
WHEREAS, due to budget constraints, the administration asked that the hospital
administrator review and pare down the capital budget request and submit a request for the most
critical needs; and
WHEREAS, the administration of Providence Seward Medical and Care Center submitted a
list of capital budget items totaling $299,500 during the 2006 budget process; and
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $165,150 TO PROVIDENCE SEWARD
MEDICAL AND CARE CENTER FOR THE PURCHASE OF CAPITAL
EQillPMENT
CITY OF SEWARD, ALASKA
RESOLUTION 2006- q!
Sponsored by: Corbridge
COUNCIL AGENDA STATEMENT
Through:
Clark Corbridge, City Manager
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Meeting Date:
April 24, 2006
From:
Kristin Erchinger, Finance Director (jIV
Agenda Item:
Appropriation for Hospital Capital Equipment
BACKGROUND & JUSTIFICATION:
The administration of Providence Seward Medical and Care Center submitted their capital budget request
during preparation of the City's 2006 annual budget. At that time, the list of needed equipment for 2006
totaled $299.500. During the budget process the City did not appropriate any funding for hospital capital
needs. City administration requested that the hospital administrator review the capital needs list and submit
a request for the most critical needs. Those needs are reflected in the attached letter. and total $165,150.
The items on this list will enable the hospital to provide improved services by replacing outdated and aging
equipment. These funds will be used to replace a 1992 ultrasound machine which was purchased used, and
which is no longer being sUPPOlted by the manufacturer. The new machine will be capable of transmitting
digital images with improved image quality and data transfer speed, aiding in quicker interpretation. The
hospital has had to discontinue the use of the current machine for certain exams, due to the deterioration of
image quality.
This appropriation will also facilitate the purchase of a biphasic defibrillator used to restore the heart from an
abnormal, to a normal rhythm. A highlIow exam table will also be purchased, allowing better exam and
procedure access for physicians.
It is important that the City support the timely replacement of equipment to reduce the likelihood of
problems associated with the use of technically obsolete equipment. The ultrasound replacement will also
enable the hospital to generate additional revenues which have been lost due to the inability to perrorm
certain services.
CONSISTENCY CHECKLIST:
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable
Yes
No
1L
FISCAL NOTE:
The purchase of this equipment requires an appropriation from the General Fund in the amountof$165,150.
Finance Approval ()t~vt.~
RECOMMENDATION:
Council approve Resolution 2006- iL appropriating the amount of $165, 150 to the Contributions Pass- Thru
account no. 101-1191-5998, from the General Fund fund balance account no. 101-0000-3050.
. ~ ~
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Attachments
Kathleen R. Kloster
Administrator
Providence Seward Medical and Care Center
(907) 224-2872
Sincerely.
Thank you in advance for your consideration. "you need further information
please do not hesitate to contact me.
Please find attached two documents, the first is a list of items that are critical for
this year. The second is a capital projection list for the next four years.
First of all. let me express my appreciation for the City's continued support of
PSMCC's capital needs. Because of this ongoing support we have added
services the hospital can provide such as screening for osteoporosis. We've also
increased the safety in the aging Wesley building through needed sewer and
electrical upgrades. In addition, because of the support we receive from the City,
we've been able to replace aging equipment so we can continue to provide
needed services to the people of the City of Seward and surrounding areas.
Dear Ms. Erchinger.
Ms. Kris Erchinger
Director of Finance, City of Seward
P.O. Box 167
Seward, AK 99664
Sent Via Email
February 26, 2006
CAPITAL REQUESTS 2006
Ultrasound Machine
Our current Ultrasound machine is a refurbished 1992 model machine that was purchased by us
in 1996. The expected life~span of this machine was 8-10 years. In 2005 we were informed by
the company they were discontinuing support for the machine and parts for the machine are no
longer being made.
Because of the age of the machine, the image quality and the age of the technology, we have
recently had to discontinue some of the more sensitive exams such as breast exams, Other
exams, such as thyroid, testicular and prenatal imaging have become more challenging due to
image quality.
Current trends in medical imaging necessitate a digital transfer of the image directly from the
ultrasound machine. This improves the imaging quality and speeds up the process of
interpretation because the image is transferred electronically to the Radiologist.
The total cost to replace this machine is $140,000.
Biphasic Defibrillator
The biphasic defibrillator is an essential medical device. used in emergency situations, when
cardlo-verslon Is necessary. Cardio-version refers to the process of restoring the heart's normal
Ihythm from an abnormal rhythm. People who would need this machine could be victims of
cardiac arrest, or people with life threatening abnormal heart rhythms.
The blphasic defibrillator unit Is designed to be lightweight for patient medical transports.
The total cost at this unit Is $19,150.
High Low Patient Exam Table
A higMow exam table allows the physician better access and visibility for patient exams and
procedures.
The total cost of this unit Is $6,000
The total amount of capital funds we are requesting is
$165,150.
Thank you in advance for your consideration.
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-43
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE CITY OF SEWARD'S CALENDAR YEAR 2006
REVISED STATE LEGISLATIVE PRIORITIES TO ADD ALUTIIQ PRIDE
SHELLFISH HATCHERY
WHERRAS, annually the City compiles a list of projects or issues tllat are identified as top
state legislative priorities; and
WHEREAS, the list of projects is compiled and distributed to the Alaska Congressional
delegation, the Kenai Peninsula Borough, and the City of Seward's lobbyists; and
WHEREAS, this prioritized list validates the projects and greatly focuses the efforts of the
administration in our lobbying efforts; and
WHEREAS, all the projects on this list are consistent with the City's Comprehensive and
Strategic Plans.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. This list oflegislative projects is hereby declared to be the official legislative
priority list for the City of Seward for the 2006 State legislative session:
PORT AND HARBOR
l. $6.5 million for inner-harbor improvementsIT-dock bulkhead! travelift dock! 3-stage
dock
2. $2.8 million for SMIC ship repair infrastructure improvements
ROADS AND STREETS
1. $2.25 million for street repair
2. $38 million for mile 18-25.5 Seward Hwy
3. $20.6 million for mile 25.5-36 Seward Hwy
PUBLIC FACILITIES
1. $225,000 for the Alutiiq Pride Shellfish Hatchery
2. $18 million for Long Tenn Care Facility
3. $10 million for Jesse Lee Home leadership school
4. $25 million for expansion of Spring Creek Correctional Facility
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PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24'"
day of April, 2006.
Section 3. This resolution shall take effect immediately upon its adoption.
Section 2. Resolution 2006-13 is hereby revoked.
1. Support continuation of Medicaid programs at not less than current year funding levels
including capital cost reimbursements.
2. Support for revenue sharing/safe communities funding
3. Support the Community Dividend Program
4. Support State assistance to municipalities and school districts for PERSfTRS debt
5. Support continued service to Seward by the State Ferry Tusturnena.
BENEFICIAL LEGISLATION
}, $4 million for replacement of two electric generators
2. $2 million for water storage tank
3. Life safety facility repair
a. $225,000 for Senior Center
b. $85,000 for Fire Department
c. $75,000 for Jail
d. $85,000 for Public Works
e, $225,000 for Warehouse
INFRASTRUCTURE
CITY OF SEWARD, ALASKA
RESOLUTION 2006-43
COUNCIL AGENDA STATEMENT
Meeting Date:
April 24, 2006
Clark Corbridge, City Manager (j JL It -<-(1- (l J,
Kirsten Vesel, Assistant City Manager kkV 4/21>/0",
Approving the City of Seward's Calendar Year 2006
Revised State T ,egislative Priorities to include Seward
Mariculture Research Center and Shellfish Hatchery
.
Through:
From:
Agenda Item:
BACKGROUND & JUSTIFICATION:
The City was advised by Representative Paul Seaton's office that in order to allow the Alutiiq Pride
Shellfish Hatchery (Hatchery) to request a $225,000 state capital improvement, the City of Seward
needs to revise the State Legislative Priority List. This request needs to be the number one capital
request on this list in order to obtain necessary funding for the Hatchery. Representative Seaton's
office is prepared to gather State support for this funding but needs the City's support in order to
facilitate this request. In comparison to the other public facilities listed on the State Legislative
Priority List, this is a relatively small financial request.
The City administmtion and the operator ofllie Hatchery. JetTHetrick, visited Kent Dawson on April
18th, 2006, to discuss this request. Kent recommended requesting an amendment to the Governor's
budget in order to avoid competition with other 2006 City priorities. Kent, Jeff and two Kodiak
researchers visited the Governor's office on April 19th to gather support from the Governor's office.
Jeff Hetrick will be available at the April 24th Council Meeting to respond to questions and plans to
give Council a recommendation. Kent Dawson will provide administration with arecommendation
on how to proceed prior to the April 241h Council Meeting.
The State has been very supportive of the Hatchery and has subsequently authorized a $100,000
grant for the ongoing operations of the Hatchery. The City has also been supportive of the ongoing
efforts of the Hatchery operations and has facilitated several other grants in prior years.
There is substantial opportunity for economic development if the Hatchery continues to gather local
and state support. The City of Seward is fortunatc to own this type of facility and the current
operator is aggressively seeking out resources and continued growth. It is in the City's best interest
to invest our support into this city owned facility. It is also in the City's best interest to help the
current operator with his capital and operational requests.
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
The priority request does not require any financial commitment
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CotUlcil approve Resolution 2006-43 approving the City ofSeward's calendar year
revised State legislative priorities to include the Seward Mariculture Research Center and
Shellfish Hatchery.
RECOMMENDATION:
Approved by Finance Department
CITY OF SEWARD
RESOLUTION 2006-43
Sponsored by; Historic Preservation Commission
CITY OF SEWARD, ALASKA
RESOLUTION 2006-44
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, SUPPORTING THE "SAVE OUR PAST, SECURE OUR FUTURE"
AS THE HISTORIC PRESERVATION COMMISSION PROJECT FOR
NATIONAL HISTORIC PRESERVATION MONTH DURING THE MONTH
OF MAY 2006
WHEREAS, "Sustain America - Vision, Economics, and Preservation" is the theme for
National Preservation Month - May 2006, cosponsored by the State of Alaska, Alaska Association
for Historic Preservation and the National Trust for Historic Preservation; and
WHEREAS, the Seward Historic Preservation Commission held a work session on February
21, 2006 and to select a project in celebration of National Historic Preservation Month; and
WHEREAS, the Seward Historic Preservation Commission approved Resolution 2006~02
selecting "Save Our Past, Secnre Our Future" focusing on the Jesse Lee Home as the local
celebration project for National Historic Preservation Month throughout the month of May 2006; and
WHEREAS, the Commission plans to involve the local students, educators, civic
organizations and general public in the celebration by sponsoring the following event:
Power point presentation on the Jesse Lee Home and Benny Benson
to present and encourage the community to support restoration of the
Jesse Lee Home and Leadership School.
WHEREAS, the citizens of Seward have enjoyed and participated in past celebrations in
honor of National Historic Preservation Month; and
WHEREAS, the community appreciates the significance of historic preservation to the future
vision and economics of Seward,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council hereby supports the Seward Historic Preservation Commission
project selection of "Save Our Past, Secure Our Future" focusing on the Jesse Lee Home as the local
celebration project for National Historic Preservation Month throughout the month of May 2006.
Section 2.
This resolution shall take effect immediately upon its adoption.
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(City Seal)
Jean Lewis, CMC
City Clerk
ATTEST:
AYES:
NOES:
ABSENT:
ABSTAIN:
Vanta Shafer, Mayor
THE CITY OF SEWARD, ALASKA
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th
day of April 2006.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-44
,
Council Agenda Statement
Meeting Date:
April 24, 2006
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Through:
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Clark Corbridge, City Manager ()PJL
Malcolm Brown, Planner,J/~ _I
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DOIUla G1enz, Planning Assistant ~ ~
From:
Agenda Item:
Supporting "Save Our Past, Secure Our Future" as the Historic Preservation
Commission project for National Historic Preservation Month during the
month of May 2006
BACKGROUND & JUSTIFICATION:
The National Trust for Historic Preservation provides leadership, education and, advocacy to save
America's diverse historic places and revitalize OUf communities. Each year a topic is selected and
commwrities across the COWltry celebrate during the month of May. This year the National Trust for
Historic Preservation announced the theme for Preservation Mon~ May 2006 as: "Sustain America
- Vision, Economics and Preservation". Preservation Month 2006 is co-sponsored by the State of
Alaska, Alaska Association for Historic Preservation and the National Trost for Historic
Preservation,
On Febmary 21 , 2006 the Seward Historic Preservation Commission held a work session to discuss
and plan a project in celebration of National Historic Preservation Month. Commissioner Park has
volunteered to develop a power point presentation for the celebration project. The committee has
chosen "Save Our Past, Secure Our Future" focusing on the Jesse Lee Home as the local celebmtion
project for National Historic Preservation Month in the month of May 2006.
At the April 5, 2006 Historic Preservation Meeting the Commission unanimously approved
Resolution 2006-02 selecting "Save Our Past, Secure Our Future" as the Historic Preservation
Commission project for National Historic Preservation Month during the month of May 2006. The
Commission plans to involve the local students, educators, civic organizations and general public in
the celebration by sponsoring the following event:
Power point presentation on the Jesse Lee Home and Benny Benson,
to present and encourage the community to support restomtion of the
Jesse Lee Home and Leadership School.
CONSISTENCY CHECKLIST:
I. Comprehensive Plan
Supports the promotion of Seward's history.
Yes
---'L
No
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Approve Resolution 2006-LJ'1.' Supporting "Save Our Past, Secure Our Future" as the Historic
Preservation Commission project for National Historic Preservation Month during the month of May
2006.
RECOMMENDA'rION:
No fInancial obligations are to be incurred by the City of Seward.
Finance Approval ~ - - - ~ ~ . 0
FISCAL NOTE:
x
2, Strategic Plan
Value and protect Seward's historic chardcter,
culture and physical attributes, all of which
contribute to its strong sense of community.
3, Historic Preservation Plan
Continuing education of citi7.enS regarding local history.
~
Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT WITH TRYCK NYMAN HAYES,
INCORPORATED (nTNHn) FOR CHANGE ORDER # 4 TO THE
HARBOR EXPANSION PROJECT CONTRACT FOR AN
AMOUNT NOT TO EXCEED $362,108.00, AND APPROPRIATING
FUNDS
WHEREAS, TNH has provided engineering and project management services to
the City since the City assumed ownership of the Seward Small Boat Harbor from the
State of Alaska in 1999; and
WHEREAS, TNH continues to provide engineering, design, bid, and
construction engineering services to the City through each phase of this extensive Project,
and is currently completing project management for Phase I of the expansion project,
including concrete float extensions to E, F. and J floats, and relocation of X float and the
Fuel float; and
WHEREAS, on January 9, 2006, the Seward City Council approved Resolution
2006-05, authorizing the City to pursue revenue bond funding in the amount of $4.5
million to complete the next phase of the project (phase II) to construct the South Harbor,
consisting of new floats M, N, 0, P, Q, which will add approximately 106 new slips, 377
linear feet of moorage, and 1,024 feet of skiff space; and
WHEREAS, TNH completed engineering on Phase II on behalf of the City, and
we are now prepared to move fOIWard to the bid and construction portion of Phase II,
which will involve technical and administrative support services, as well as on-site
construction management services overseeing the construction phase of the project; and
WHEREAS, TNH proposes to furnish these services at an amount not to exceed
$362,108.00; and the City proposes to pay for these costs with remaining Harbor
Expansion Project funds in the amount of $360,822.18, as well as $1,285.82 from the
Harbor Enterprise Fund
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to execute Change Order #4 to the
Harbor Expansion Project Contract with Tryck, Nyman, Hayes, to pursue Phase IT, which
will construct the new South Harbor, in an amount not to exceed $362,108.
L8
~-~
(City Seal)
Jean Lewis, CMC
City Clerk
ATTEST;
AYES:
NOES:
ABSENT:
ABSTAIN:
Vaota Shafer, Mayor
THE CITY OF SEWARD, ALASKA
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
24th day of April 2006.
Section 3, This resolution shall take effect immediately upon its adoption,
Section 2. Funding in the amount of $362,108 is hereby appropriated as follows:
$360,108.00 is appropriated from the Harbor Expansion Project account no. 315-0000-
3070-0274, and $1,285.82 is appropriated from the Harbor Enterprise Fund account no.
401-0000-3070-0274, to account no. 274-2743-5390.
CITV OF SEWARD, ALASKA
RESOLUTION 2006-45
COUNCIL AGENDA STATEMENT
Meeting Date;
April 24, 2006
Through:
rfi ^ l.Jcl.J'f){,
Clark Corbridge, City Manager (/1tJ L-
Scott Ransom, Harborrnaster,,(ifl(
Authorizing the City Manager to Enter into an
Agreement with Tryck Nyman Hayes, Incorporated
("TNH") for Change Order #4 to the Harbor Expansion
Project Contract for Three Hundred Sixty Two
Thousand, One Hundred Eight Dollars ($362,108), and
Appropriating Funds
.'
From:
Agenda Item:
BACKGROUND & mSTIFICATION:
The City of Seward has been pursuing various construction projects in the Small Boat Harbor since
assuming ownership of the harbor from the State of Alaska in 1999, Since that time, Tryck, Nyman,
Hayes, Inc. ("TNH") has provided engineering, design, bid and construction engineering services to
the City. In 2005, the City Council approved Change Order #3 to TNH's contract, which authorized
completion of Phase I of the City's Harbor Expansion Project, and the City currently is completing
that Phase, which adds float extensions to E, F, and J tloats, and relocates X float and the fuel float.
On January 9, 2006, the Seward City Council approved Resolution 2006-05, authorizing the City to
pursue revenue bond funding in the amOunt of $4.5 Million to pursue Phase n of the harbor
expansion, which constructs the new South Harbor. This phase of the project will create new M, N,
0, P, and Q floats, adding approximately 106 new slips, 377 linear feet of moorage, and 1,024 feet of
skiff space. TNH completed the engineering for this phase of the project, and it is necessary now to
move on to the bid and construction portion of Phase II, for which TNH provides engineering
services.
TNH has prepared the construction bid packets and will assist the City in reviewing the bids when
received. Because ofTNH's years of work on this project, and their intimate inVOlvement in every
step of this project, we are requesting Council authorization to approve Change Order No.4, in the
form of a SCope of work for bid and construction services. This work wiJI involve technical and
administrative support, and on-site construction management services overseeing the construction
phase of the contract. The total fee for these services is an amount not to exceed Three Hundred
Sixty Two Thousand, One Hundred Eight Dollars ($362,108.00). The services proposed, the cost of
those services, and a proposed time line are described in Attachment A to Change Order No.4.
CONSISTENCY CHECK:
1, Comprehensive Plan
Economic Development. Small Boat Harbor Development: expand and maximize potential o/the
existing harbor.
2. Strategic Plan
E.collomic Rase, Improve and Expand Maritime Facilities; complete eastward expansion
of the Small Boat Harbor
3. Other: Small Boat Harbor Management Plan
Harbor Development. New Harbor Development and Expansion. . . expand tM existing harbor.
Yes
--X.
No
--X.
,
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RECOMMENDATION:
Council approve Resolution 2006-~~ authorizing the City Manager to enter into an agreement with
TNH to approve Charge Order #4 to the Harbor Expansion Project, for Phase II. in an amount oot-to-
exceed $362,108, and appropriating $360,822.18 from the Harhor Expansion Project Fund account
no. 315-0000-3070-0274 and $1,285.82 from the Harbor Enterprise Fund account no. 401-??oo-
3070-0274, to account no. 274-2743-5390.
FISCAL NOTE:
An appropriation in the amount of $360,822.18 will be made from remaining Harbor Expansion
Project funding, with the remaining balance of $1,285.82 to come from the Harbor Enterprise Fund,
for a total appropriation of Three Hundred Sixty Two Thousand, One Hundred Eight Dollars
($362,108).
Approved by Finance Department - - --- - - ..- J - .
RESOLUTION 2006~ 'IS
PAGE TWO
SEWARD SMALL BOAT HARBOR EAST EXPANSION CONTRACT
Inner Harbor Phase I
HARBOR DEPARTMENT
CITY OF SEWARD, AK
CHANGE ORDER No.4
This Change Order No.4 and Notice to Proceed ("Change Order No.4") is
pursuant to the Engineering Services Contract entered into October 27, 2003 between the
City of Seward, Alaska ("City") and Tryck Nyman Hayes, Incorporated ("lNH"). This
Change Order No.4 is effective April 24, 2006 upon signatures of both parties.
lNH is hereby directed to amend the Scope of Work defined in the Engineering
Services Contract to include Bid and Construction services described in Exhibit A,
attached and incorporated herein by reference. The work will be completed no later than
June 30~, 2007.
The Contract price is hereby increased in the amount not to exceed the Three
Hundred Sixty Two, One Hundred Eight Dollars ($362,108.00), to be paid in the
accordance with the original contract provisions.
effect.
All other provisions of the Engineering Services Contract remain in full force and
Dated the 24~ day of April 2006.
APPROVED BY:
CITY OF SEWARD
TRYCK NYMAN HAYES, INC.
By:
Clark Corbridge, City Manager
By:
Ted B. Trueblood, PE, President
ATTESTED BY:
Jean Lewis, CMC, City Clerk
City of Seward
~ ,')
.i..:-,-
1;.3
Date:
Scott Ransom, Harbormaster
Surveying
Engineering
Landscape Architecture
Approved:
Scope of Work & Fee Proposal
Enclosures:
Kimberly Nielsen, PE
Project Manager
Sincerely,
TRYCK NYMAN HAYES, INC.
As always, we are available to meet with you to further discuss the scope or fee for this work. If you concur with
the proposed fee and scope, please sign and return this letter, which will serve as a notice to proceed. Please call
me at 907-343-0264, if you have any questions regarding the enclosed documents.
The proposed scope of work is a continuation of our on-going engineering services contract for the design of the
inner harbor float system for the next phase of work-South Harbor. In January 2006, we submitted the 90% float
procurement RFP for South Harbor and Z Float. We have received input from the City to proceed with only the
South Harbor portion of the project and this letter represents our fee proposal for this new scope of work.
We will revise and finalize the Float Procurement RFP documents and provide bid support for the float procurement
contract, This work will indude limited construction administration for the float manufacturing, including one site
visit to inspect the floats prior to delivery to Seward. Subsequently, we will prepare bid-ready construction
documents for the float installation, which will include the float system, uplands development and utilities
extensions to support the new harbor areas, as detailed in the attached scope of work. Follow-on Bid and
Construction Support Services include technical and administrative office support, an on-site construction
representative, and an offic&-based project engineer to provide oversight and periodic Inspection services (see
Scope of Work). The estimated fees and payment basis for each task is:
1. Finalize Float Procurement RFP $ 7,150
2. Procurement Bid Support and Construction Admin. $ 14,160
3. Permitting $ 3,660
4. Float Installation Design & Construction Docs.
(Includes Uplands/Utilities Design)
5. Installation Bid Support
6. Installation Construction Administration
Project Total
Lump Sum
T&M
T&M
$174.793
$ 22.362
$139,963
$362,108
Lump Sum
T&M
Lump Sum
Enclosed with this letter is our proposal for continuing design for the Harbor Expansion project for the next phase-
South Harbor. This includes completion of the float procurement RFP, UplandsJUtilities Development and Float
Installation Design Construction Documents, as well as Bid Support and Construction Administration Services for
the subject contract. The fee estimate assumes that no major changes to the current layout are required.
Dear Scott,
Mr. Scott Ransom, Harbormaster
City of Seward
P.O. Box 167
Seward, AK 99664
RE: Seward Small Boat Harbor East Expansion Contract (South Harbor)
April 4. 2006
TRYCK NYMAN HAYES, INC.
911 West Eighth Avenue
Anchorage, Alaska 99501
907.279,0543.800.770.0543
Fax: 907.276.7679
Email: tedt@tnh-lnc.com
1~1-1
Seward Small Boat Harbor Expansion
South Harbor Project
Scope of Work
INTRODUCTION
Tryck Nyman Hayes, Inc. (TNH) is pleased to provide this proposal tor the continuation of the
Seward Small Boat Harbor East Expansion, more specificaHy for the tasks associated with
development of the new South Harbor,
PROJECf UNDERSTANDING
Goals - The goals of the design and construction phase are;
1. To provide the highest quality design, products and facilities to obtain the longest service
life with minimum maintenance requirements.
2. To take advantage of previous experience to improve the design and construction of the
float system, and completing them in an efficient and cost-effective manner.
Facilities - This construction project will include;
. Procurement and installation of new timber floats Q, M, N, 0, and P Floats with a total of 107
new slips and a new access trestle and gangway in a new "South Harbor", located adjacent to
the newly constructed West Breakwater. These floats will include water. fire suppression.
sewer, and electrical utilities. Associated upland development will include extending utilities
from the main to the new Q Float access trestle.
. In addition to utilities extensions, uplands development will include a gravel approach road.
grading, restroom facilities, and waste collection facilities at the South Harbor area.
PROCEEDURE
Task 1 - Finalize Float Procurement RFP - Recently we have submitted the 90% float
procurement RFP based on the City approved layout (July 13. 2005) for the South Harbor and Z
Float (S80-ft). Recent discussions with the City indicate that the City wishes to proceed with
only the South Harbor at this time. The Float Procurement RFP will be revised to remove the
work associated with Z Float.
The RFP documents wHl provide details of the general float configurations and design criteria
for the float system. Basic infonnation related to the gangways, trestles, powerllighting, water,
sewer, fire protection and other facilities will be included to provide the float
manufacturer/designer with sufficient performance specification detail and to present a
completed picture of the required float system. QC/QA checks wiIJ be made internally. An
Engineer's cost estimate will be developed. Review materials and attendance at a Port And
Commerce Advisory Board (pACAB) and City Council approval meetings will be provided as
requested by the City.
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Seward Harbor Expansion, South Harbor Scope of Work
Task 6- Installation Construction Administration - Follow-on ConstnIction Administration
Services include technical and administrative office support, an on-site construction
representative, and an office-based project engineer to provide oversight and periodic inspection
services. Following award of the installation contract, shop drawings and submittals from the
contractor will be reviewed and approved. During the time the contractor is on-site installing the
work, an on-site construction representative (CR) will be provided to coordinate with the
contractor and City project manager. The CR will monitor daily activities, prepare a daily
inspection log, prepare and coordinate change orders, review pay estimates, and maintain a file
of related correspondence during the active on-site construction.
Task 5 _ Instal/ation Bid Support - The contract will receive a final QC/QA review and be
advertised. Bid sets will be reproduced and distributed with a bidders list maintained, Contract
amendments will be prepared, if necessary and TNH will attend a pre-bid conference in Seward.
A brief bid evaluation will be prepared with the engineers recommendation for award. A
Confonned Set of contract documents will be produeed that incorporates any
changes/clarifications identified during the bidding period.
A 65% and 95% review will be conducted by the City with design staff Two interim (65% and
95%), and a final engineer's construction cost estimate will be prepared. A final QC!QA review
will be made.
Uplands/Utilities Design -- The uplands/utilities design work will be conducted concurrently
with the Float Design and wi11 be incorporated into the bid package for the Installation Contract.
This task includes civil design of utilities, access road, and foundation design for a bathroom
building at the new south harbor. The work includes a land survey of utility routes, test holes for
a geotechnical study of the utility routes, approximately 900-lf of gravel access road, sewer lift
station, 500-lf of gravity sewer, 640-ft ofprcssure sewer, and 1100-ft of water main at South
Harbor, In addition, design of a restroom foundation and specification for a prefabricated
bathroom for the South Harbor and specification for a waste collection area wi11 be provided.
Task 4 - Float Installation Design & Construction Documents -The installation contract follows
the Float Procurement RFP. It will further develop the float system layout and details, trestles,
gangways, on-float utilities, uplands development and utilities extension, and associated design
features into a bid-ready set of contract specifications and drawings.
Task 3 - Procurement Bid Support and Construction Administration - The Float Procurement
RFP will be advertised andlor solicited for competitive bidding. TNH will handle distribution of
RFP documents, maintaining a bidders list, and providing answers to contractor's technical
questions. Amendment(s) will be prepared as necessary, Proposals will be opened by the City
and we will provide technical assistance to the City during evaluation of the proposals. Once the
procurement contract is awarded, limited construction administration services will include shop
drawing review and approval plus one site visit to inspect the floats prior to delivery to Seward.
Task 2 _ Permiiling-permitting of the construction project will also be completed. Pennitting
will include preparation and submittal of applications for ADEC approval of the water and
wastewater systems. The existing Corps of Engineer's pennit and ACMP Consistency Review
included the South Harbor work, and no modification to this pennit is required,
Post COnY/rue/ion Services - Also included in this task is services related to project closeout.
Once Construction is complete, one set of "As-Built" construction drawings will be prepared. If
there are claims related to the installation contract, assistance with the claim review and defense
will be provided. Due to the significant uncertainty of claims, the assistance with claims must be
on a time and materials basis.
Engineering and Design Contract Awards. At the City's option, the engineering design
contract should be awarded in several steps. The first step would include Tasks I through 4,
which would provide for the float design and procurement, and the installation contract plans and
specifications to the point of being ready to advertise. A second contract (or change order to the
first design contract) wiH provide for the installation contract advertising. award and the
construction administration, namely Tasks 5 & 6.
PRODUCTS
Text documents will be in MS Word format, and drawings wnI be AutoCAD 2006 format. The
City will be provided with:
. 2 half-size sets of Draft Review Plans and Specifications,
. 2 half-size sets and one Read-only CD of the Conformed Plans and Specifications,
. As-Built Drawings at the conclusion of the project after the final inspection. One fuII
size and two half-size sets of drawings will be provided, along with one Read-Only
CD.
TEAM ORGANIZATION
The following individuals have been assigned to the project:
Ted Trueblood, PE, Principal
Mr. Trueblood, as president of TNH is authorized to bind the finn to perfonn engineering
services. He will also provide general management oversight for the project.
Craig Freas, PE, Quality Control/Quality Assurance
Mr. Freas will be the QC/QA manager. He will perform periodic reviews of the work and
provide general oversight of the project team. He wHl also provide input related to structural
engineering aspects of the design as well as his expertise for responding to technical and
construction related issues as the construction progresses.
Kim berly Nielsen, PE, Project Manager and Waterfront Engineer
Ms. Nielsen will be the primary point of contact and provide the primary technical and
administrative support for the project She will be responsible for monitoring the project costs,
providing technical design and pemtitting services, coordinating and preparing the RFP and
contract documents, providing answers to contractor questions and preparing amendments during
bidding, if necessary, coordinating related office activities, attending the pre-bid conference and
preparing the TNH bid evaluation and recommendation for award. Once the contract is awarded,
Ms. Nielsen will provide the office support and coordination for review and approval of
contractor submittals, change orders, coordination with the TNH Construction Representative
and other construction related activities. Additionally, she will provide support and oversight for
Seward Harbor Expansion, South Harbor Scope of Work
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Seward Harbor Expansion, South Harbor Scope of Work
Coordination and Communication
Unforeseen circumstances beyond lNH's control will be brought to the City's attention
promptly fOf a coordinated review and resolution. Good cooperation and coordination between
TNH and City project managers is very important.
Project Management
The project manager, Kimberly Nielsen, will continuously monitor the project costs through the
TNH accounting system and with the subconsultants. She will then compare them with budget
estimates using PlanTrax software. These results will be periodically reviewed with the City's
project manager and the lNH contract manager,
PROJECT MANAGEMENT
TEAM COMMITIMENT
Our team fully understands the importance that the City of Seward places on providing high-
quality float and utility systems and meeting both the budget and schedule for this project. We
believe that frequent, open and honest communication throughout the life of the project will
provide the best means to control and meet these objectives.
Barry Begenyi, PE, Marine Electrical Engineer
Mr. Begenyi. as the electrical design engineer, will provide the review of contractor submittals
and provide answers to technical issues related to the electrical and lighting. He will make a site
inspection to ensure the electrical components are provided and properly installed,
Agnes Stowe, Construction Representative
Ms. Stowe is an Assistant Engineer with TNH and will be responsible for the on-site
coordination with the contractor and City project manager. Ms. Stowe perfonned on-site
construction oversight for the North Harbor Extensions and X/Fuel Float Relocation portion of
the project. She will review contractor submittals; prepare daily reports, design
clarification/verification reports, field directives, and change order forms; take photographs; and
review contractor pay applications. She will be in daily contact with either Ms. Nielsen or Mr.
Daley to review progress and obtain guidance and direction on any issues that may arise.
John Daley, PE, Waterfront Engineer
Mr. Daley will provide technical design input and periodic design reviews. He will assist with
answering contractor questions and construction related issues during bidding and construction.
In addition, he will assist Ms. Nielsen as necessary with coordination of the project and quality
assurance tor the project with his considerable experience with Seward Harbor projects.
Mike Wolski, PE, Civil Engineer
Mr. Wolski will manage the uplands utilities design portion of the project. He will direct and
supervise the civil engineering team and provide technical design input and design reviews at
each submittal phase. During bidding and construction, he will assist with answering contractor
questions and construction related issues related to the utilities aspect of the work. He will make
a site inspection to ensure the uplands and utilities work is provided and properly installed,
the on-site TNH Construction Rt-'Presentative including periodic visits to the project site to
review construction progress and meet with City representatives to review the project status.
SCHEDULE
Float Procurement
The following milestone schedule
procurement portion of the project.
IS representative of the proposed schedule for the float
Notice to Proceed (NTP)
Advertise Float RFP
Bid Opening
Contract Award
Contractor NTP
Delivery of Floats in Seward
04 April 2006
07 April 2006
01 May 2006
22 May 2006
29 May 2006
15 October 2006
CODstruction
The following milestone schedule is representative of the proposed schedule for the construction
of the project.
An estimate for the above engineering services has been prepared, Recognize the fact that the
Time and Materials (T&M) estimates could be either above or below actual costs. The estimated
fees and payment basis for each task is summarized below.
I. Finalize Float Procurement RFP
2. Procurement Bid Support and Construction Admin.
3, Permitting
4. Float Installation Design & Construction Docs.
(Includes Uplands/Utilities Design)
5. Installation Bid Support
6. Installation Construction Administration
Project Total
Construction Documents Complete! Advertise
Bid Opening
Contract Award
Contractor NTP
Delivery of Floats (above)
In Water Work Completed
Float Available to Public
Final Completion
21 July 2006
18 August 2006
08 September 2006
15 September 2006
15 October 2006
31 March 2007
15 April 2007
30 June 2007
FEE PROPOSAL
$ 7,150
$ 14,160
$ 3,660
$174,793
$ 22,382
$139,963
$ 362,108
Seward Harbor Expansion, South Harbor Scope of Work
M:\030%-OOO\PrQject Manag.:ment\Contract\2006-04-04 SouthHarborOnly SOW.doc
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Lump Sum
T&M
Lump Sum
Lump Sum
T&M
T&M
Page 5 of5
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-46
A RESOLUTION 0.' THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING A GRANT FROM THE OFFICE OF THE
GOVERNOR OF THE STATE OF ALASKA FOR THE SUPPORT OF THE
ALUTHQ PRIDE SHELLFISH HATCHERY, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT WITH THE STATE OF
ALASKA FOR THE GRANT FUNDS, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT WITH QUTEKCAK
NATIVE TRIBE TO PASS THROUGH THE GRANT FUNDS AND
APPROPRIATING THE FUNDS
WHEREAS, the State of Alaska through the Governor's Office is providing a $100,000
grant to the City for the support ofthe Alutiiq Pride Shellfish Hatchcry for the period of April 6 2006
through Juue 30, 2006; and
WHEREAS, the funding is being provided by a direct grant from the V,S, Department of
Commerce, Community and Economic Development Office of Economic Development; and
WHEREAS, the grant funding includes $100,000 for support of the hatchery operations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. Grant funds in the amount of$100,000 are hereby accepted from the Office of the
Governor of the State of Alaska for the support of the Seward Shellfish Hatchery for the period of
April 6, 2006 through Juue 30, 2006 and appropriated account no. 890-8902-4680-0200 to account
no. 890-8902-5998~
Section 2. The City Manager is hereby authorized to enter into an agreement with the State
of Alaska for the grant funds and with Qutekcak Native Tribe to pass through the grant funds for the
support of the Seward Shellfish Hatchery in substantial fonn as presented at this meeting,
Section 3. This resolution shall lake effect immediately upon its adoption,
~3J
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The grant does not allow the City or the Shellfish Hatchery to charge for overhead or administrative
charges. The City's costs will be staff time in administering the grant and the funding.
ill ~ I
Approved by Finance Department ~;V ~~
FISCAL NOTE:
Where applicable, this agenda statement is consistent with the Seward City Code, Charter,
Comprchensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
CONSISTENCY CHECKLIST:
Alutiiq and Quteckak are in the process of transferring the operations and bond requirements.
Alutiiq will present the City with a bond reduction proposal justifying their mothball expenses. The
City expects to have a negotiated agreement to Council and a new Assignment of Agreement to
Operate and Maintain the Seward Mariculture Research Center & Shellfish Hatchery between the
City and Alutiiq Pride Shellfish Hatchery by the end of June, 2006.
For your infonnation, the Governor's Office provided a $120,000 grant for the Seward Shellfish
Hatchery in December, 2004 and a grant of$150,000 in May of 2004.
Attached are Memorandums of Agreement between the State of Alaska and the City to accept the
grant and between the City and Quteckak Native Tribe ("QNT") for the acceptance of the funding
and requirements being passed through the City from the State.
The Grant funding of $1 00,000 is for support of hatchery operations.
The State of Alaska through the Governor's Office is providing a $100,000 grant to the City for the
support of the Seward Shellfish Hatchery for the period of April 6, 2006 through June 30, 2006. The
funding is being provided by a direct grant from the U.S. Department of Commerce, Community and
Economic Development.
BACKGROUND & JUSTIFICA T10N~
Seward Mariculture Research Center and Shellfish
Hatchery
Agenda Item:
.
April 24, 2006
Clark Corbridge, City Manager {jJL If-/{- (JI,
Kirsten Vesel, Assistant City Manager KK.\I 'f--II-O("
From:
Through:
Meeting Date:
COUNCIL AGENDA STATEMENT
RECOMMENDATION:
Council approve Resolution 2006-.!l6accepting a $100,000 grant from the Office of the Governor of
the State of Alaska for the support of the Seward Shellfish Hatchel)', authorizing the City Manager to
enter into an agreement with the State of Alaska for the grant funds, authorizing the City Manager to
enter into an agreement with Qutekcak Native Tribe to pass through the grant funds and
appropriating the funds.
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-Memorandum of Agreement ~ Qutckcak Shellfish Hatchery City of Seward- Seward, AlaskaM
-March 2006-
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To the fullest extent pennitted by law, the Contractor agrees to defend, indemnify and hold hann1css
the City, its elected and appointed officials, employees, and volunteers against and all liabilities,
This Agreement may be amended by written mutual consent.
The Contractor hereby assumes all responsibilities of the City as set forth in the Memorandum of
Agreement between the State of Alaska, Office of Governor and the City of Seward attached and
incorporated herein by reference,
The Contractor shall provide for hatchery operations within the budgeted amount of$100,000 during
the performance period, No overhead or administrative charges shall be applied. The Contractor
shall ensure funds arc expended for the purposes intended and shall keep accounting records that are
complete, accurate, available upon request to the City and the Office of the Governor, and recorded in
accordance with OMB Circular A-87. The Department of Commerce, Community and Economic
Development standard award provisions are attached to the grant agreement.
This Agreement is funded by a direct grant from the U.S. Department of Commerce, Commwrity and
Economic Development to the Office of the Governor under CFDA #11.452, State of Alaska
Economic Development. The funding is provided for Alaska Fisheries Revitalization Strategy which
combines federal Fisheries Disaster funds authorized under Title V-Fisheries Disaster, Section 501(h)
of the 2003 f'ederal Appropriations Bill and Southeast Sustainable Sahnon Fund monies, authorized
under the Pacific Coastline Salmon Recovery Fund.
The Office of the Governor of the State of Alaska has provided funding in the amount of$loo,OOO to
the City of Seward for support of the Alutiiq Pride Shellfish Hatchery, April 6, 2006 through June 30,
2006.
THIS AGREEMENT (TIlE "Agreement") made on the day of. ' 2006
between the CITY OF SEWARD, ALASKA (the "City"), acting by and through thc City Manager or
other City authorized representative (its "Contracting Officer") and Qutekcak Native Tribe, its
successors and assigns (the "Contractor") as follows:
QUTEKCAK SHELLFISH HATCHERY
CITY OF SEWARD
SEWARD, ALASKA
MEMORANDUM OF AGREEMENT
. Main Office (907) 224-4050
. Police (907) 224-3338
. Harbor (907) 224-3138
. Fire (907) 224-3445
. Fax (907) 224-4038
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CITY OF SEWARD
1'0. [lOX 167
SFWARD. AlASKA 99664~0167
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claims, demands, lawsuits, or losses, including costs and attorney fees incurred in defense thereof:
arising in whole or in part, from the negligent actions, errors, or the omissions of the Contractor
and/or the Contractor's officers, agents, subcontractors, and employees in any way cOIUlected or
associated with this Contract.
The Contractor may not assign or delegate the Contract, without written approval by the City. The
City hereby approves an assignment from Qutekcak Native Tribe to Chugach Regional Resources
Commission. The Contractor is an independent contractor, and is not an employee or agent of the
City.
IN WITNESS WHEREOF the parties hereto have executed this Agreement. effective the
day and year first above written.
CITY OF SEWARD, ALASKA
QUTEKCAK NATIVE TRIBE
Clark Corbridge, City Manager
Connie Pavloff, Tribal Administrator
Attest:
CHUGACH REGIONAL RESOURCES
COMMISSION
Jean Lewis, CMC, City Clerk
Jeff Hetrick
(SEAL)
DATED at
, Alaska this
day of March, 2006.
Attachment
A. Stale of Alaska Department of Commerce, Community and Economic
Development Grant Agreement.
Assi&,'llment of Agreement to Operate & Maintain the Seward Mariculture
Research Center and Shellfish Hatchery
March 2006
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p.o.13ox 110S04,]uneau, i\h~b 99811-0804
Telephone: (907) 465-2500 Fax: (907) 465-3767 Text Telephone: (907) 465-5437
Emui!: oed@commcn:e.~tak.ak_us Website: htrp://www.commerce.statc.ak.us/ocd/
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Debbie McBride
Grants Administrator
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Sincerely,
If YOll have any questions regarding the grant agreement, please call me at 907-465-2023 or email at
debbie mcbride@cnnunerce.state.ak.us.
Once we have reviewed and approved the returned documents, we will sign both cover pages and
return a copy to you for your file, signifying that your grant is fully.executed If your project is
already underway or complete, you may send in a financmJ report/request for reimbursement packet
along with the signed pages.
Please note that the Signatory Authority form need only be signed if you would like someone in the
organization other than the mayor to sign documents related to the grant agreement. There are two
sections, one for grant amendment.. and the other for financial reports,
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1. Sign two cover pages, ./
2. Sign Appendix G, the Debarment and Lobbying Certification, v
3. Fill out and sign Appendix H, the Signatory Authority Form, and v
4. Send two signed cover pages, Appendix G and Appendix H to this office. v~ltd 4}1"1olP
You may keep the complete copy of the grant agreement for your file, After you review the want
agreement and approve its contents, please follow the instructions below:
Congratulations on the City of Seward's grant award for Alutiiq Pride Shellfish Hatchery operational
expenses! Attached please find one full copy of the gxant agreement as well as two additional cover
pages. The want agreement is a comprehensive document that details your .role and responsibility as
a grantee. Please thoroughly read through it. Attachment A deals specifically with your project while
the other sections describe the program and its requirements more generally.
Subject: 2005 Fisheries Economic Development Grant Program want aweement
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Dear Ms. ~slci-Rogers:
Kim Kowalski-Rogers
Box 167
Seward, AK 99664
Apnl 4, 2006
Frank H Mtff'koWJki, Govtrnor
William C NoH, C:ommirJiOllifr
Mark Edwards, Director
DEPARTMENT Of
COMMERCE
COMMUNITY AND
ECONOMIC DEVEWPMENl
Office of Economic Development
State of Alaska
Department of Commerce, Community and Economic Development
Office of Economic Development
Alntiiq Pride Shellfish Hatchery Operations
CFDA # 11.452
A ward Amount
$100,000
Project Title
Alutli Pride Shellf"lsh HatcM
Grant Agreement Number
Collocation Code
Name
CI of Seward
Federal Tax Identification Number
92~6000086
StreetIPO Box
Box 167
Cily/SlatelZip
Seward AK 99664
Contact
Kim Kowalskl-Ro en
Phone
907-224-4063
Name
Debbie McBride
Title
Grants Administrator
Street/PO Box
PO Box 110804
City/StatefZip
Juneau AK 99801
Email
debbie mcbride@commerce.state.ak.us
Phone Fax
(907) 465-2023 (907) 465-5085
AGREEMENT
The Alaska Department of Commerce, Community and Economic Development. Office of Economic Development
(hereinafter 'Department') and City of Seward (hereinafter 'Grantee') agree as set forth herein.
Section I. The Department shall pay the Grantee tor the performance of the project work ullder lbe terms outlined in this
agreement. The amount of the payment is based upon project expenses incurred, which are authorized under this Agreement.
In no event shall the payment exceed $100.000.
Section II. The Grantee shall perform all of the work required by this Agreement.
Section III. The work to he performed under this agreement begins on the date of the final signatme and shall be completed no
later than June 30, 2006.
Section IV. The agreement consists of this page and the following:
Email
Klmkr@cltyofseward.net
F.x
907-224-4038
ATIACHMENTS
APPENDICES
Attachment A: Scope of Work
1. Project Description
2. Project Budget
3. Budget Narrative
4. Project ManagementlReporting
5. Reporting Forms
Attachment B: Payment Method
Attachment C: General Provisions
Appendix A:
Appendix B 1:
Appendix B2:
Appendix C:
Appendix D:
Audit Regulations
Audit Compliance Supplement
Indemnity and Insurance
State Laws and Regulations
Special Requirements and Assurances for
Federally Funded Projects
Site Control
State Fire Marshal Review
Debannent & Suspension/Lobbying Form
Signatory Authority Form
AMENDMENTS: Any fully-executed amcndments to this
Agreement
Apperidix E:
Appendix P:
Appendix G:
Appendix H:
Printed Name and itIe
Clark Corbridge. City Mana er
Date
April 6, 2006
Printed Name and Title
Glenn Hai ht, Fisheries Develo ment S ecialist
Date
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A/utii" Pride Shellfish l-Iatr:hery Opemtions: Attachment A
Rev 2106
The City of Seward will provide operational funding for the Alutiiq Pride Shellfish Hatchery, Operational funding may
be used for overhead expenses, payrull, shellfish seed, and other activities as approved by the Department. The City of
Seward will provide an accounting of the operational expenses incurred with each reimbursement request including a list
of activities/expenses and their associated costs.
lb. Project Description - Scope
The Fish Cabinet, a cabinet-level group ofrepresentalives from the departments ofFish & Game, Labor & Workforce
Development, and Commerce, Community & Economic Development, and the Governor's Office, detennine the use of
funds under the Revitalization Strategy. The Cabinet determined that the shellfish mariculture industry is a key
diversification tool for salmon fishermen that need other economic opportunities. As such, the Cabinet has allocated
significant resources to the mariculturc industry to expedite its rate of dcvclopment,
The Revitalization Strategy is a multi-level, multi-year plan designed to spur increased productivity and innovation in the
Alaska Fishing industry by investing considerable resources into critical commercial fisheries infrastructure, capital
imprnvement projects, quality improvements, and marketing.
The Alaska Fisheries Revitalization Strategy combines federal Fisheries Disaster funds authorized under Title V-Fisheries
Disaster, Section 501(b) of the 2003 Federal Appropriations Bill and Southeast Sustainable Salmon Fund monies,
authorized under the Pacific Coastal Salmon Recovery l/und.
I a. Project Description - Alaska Maricultur'e Research Center
Attachment A
Scope of Work
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City of Seward
2. Project Budget
Cost Category GralltFullds Match Contribution Total Project Cost
Operational Expenses $100,000 $0 $100,00C
TOTALS $100,000 $0 $] 00,000
Rev 2/06 Alutiiq Pride Shellfish H,urh~,y Op"mliun,'." Allachmel1t A P"-IJC2 of4
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Alaliiq Pride ,%ellfish HalchJ", ~&btiolls: Allachmc,,1 A
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The Grantee is not required to match grant funds,
3b. Budget Narrative - Match Contribution
The total t:ost of this projt:d is estimated Lo be $100,000. These funds may he used to pay for activities as described in section
1 b and listed in section 2.
3a, Budget Narrative _ Grant Funds (explain what i.~ included in the GranL Fund figures in each of the cost categories and
how the figures were computed)
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4. Project ManagcmcntJRcporting
This project will be manageu hy the Grantee unless otherwise approved by the Department in this agreement.
Tfthe Grantee is a City, signatory authority for execution of Lhe Grant Agreement and subsequent amendments is granted
to the Mayor. The Mayor may delegate signatory authority fur executing the Grant Agreement and amendments to others
within the City government via the Signatory Authority Form (See Appendix H). The Mayor may also designate financial
reporting authority via the Signatory Authority Form. Such delegation is limited to others within the City government,
unless otherwise approved by the Department.
If the Grantee is not a City, signatory authority for execution of the Grant Agreement and subsequent amendments is
granted to the Chief Executive Officer (CEO) or highcsl official. The CEO may delegatc authority for executing the Grant
Agreement and amendments to others within the Grantee's organization via the Signatory Authority Form (See Appendix
H). The CEO may also designate financial reporting authority via the Signatory Authority Form. Such delegation is
limited to others within the Grantee's organization unless otherwise approved by the Department.
The Grantee must establish and maintain separate accounting for the use of these grant funds. The use of grant funds in
any manner contrary to lhe lenns and conditions of this Grant Agreement may result in the subsequent revocation of the
grant and any balance of funds under the grant. It may also result in the Grantee being required to return such amounts to
the State.
The Grantee shall submit the Financial Report Form (see attached form) monthly during the life of the Grant Agreement
or as agreed to by the Department. The grant Financial Reporl Form is due fifteen (15) days after the end of the month
being reported. The report period is the first of the month through the last day of the monlh. The Grantee must submit
rcports regardless of whether costs were incurred during lhc rcporting period.
s. FormsPacket
The following section. which includes the Financial Report Form. is to be used by the Grantee for monthly reporting.
Additional copies of the financial report form is availablc from the Department electronically or in hacd copy.
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Alilliiq Pride Shellfish Hatchery Opemtir}tls: Atladllrll.'nt A
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Aluriiq Pride SheiljiJ'/' Halchery Operation.l: AuacJzmem B
Rev 2106
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The Department may withhold ten percent (10%) of the grant award unlil the Department determines that the Grantee has
satisfactorily completed the terms of this grant agreement, including all required reporting.
4. Withholding of Ten Percent (107fJ)
The Department will pay travel expenses not to exceed the federal rate or State General Government Bargaining Unit rate,
whichever is greater. Grant funds may not be used for travel on foreign air carriers (49 UUSC ~ 40118) and grant funds
cannot be used for travel expenses for any federal employee.
3. Payment for Travel
In most ins lances, the Department will make payment to a Grantee on a cost reimbursable basis. If cost reimbursement
significantly inhibits the Grantee's ability to implement the project. the Department may consider advance payment. The
Dcparunent may advance to the Grantee an amount not to exceed a projected thirty (30) day cash need, or twenty percent
(20%) of the grant award. whichever is less. Before the Dcpartmenl will issue an advance, the Grantee must provide the
following in writing on forms provided by the Department
a. justification of the need for the advance
b. documentation of costs associated with the advance
All advances will be recovered with the next financial report form. Should earned payments during the terms of this Grant
Agreement be insufficient to recover the full amount of the advance. the Grantee will repay the unrecovered amount to the
Department when requested to do so by the Department, or atlermination of the Grant Agreement.
2. Advance Payment
Upon recciving and approving a Grantee's financial report, the Department will reimburse the Grantee for costs incurred
during the reporting period, in accunlance with this Grant Agreement. The Department will not reimburse without
approved tlnancial rcpOft, prepared and submitted by the Grantee on the fonn provided in Attachment A Before
approving the financial report for payment, the Dcpartment will require the Grantee to submit documentation and/or an
accounting of the costs reported.
1, Reimbursement Payment
Attachment B
Payment Method
Article 1.
Article 2.
Article 3.
Article 4.
Article 5.
Article 6.
Article 7.
Rev2J06
Attachment C
Standard Provisions
Definition
"Department" refers to the Department of Commerce, Community and Economic Development with the
State of Alaska.
Indemnification
It is understood and agreed that this Grant Agreement is solely for the m:nefit of the parties to the Grant
Agreement and gives no right to any other party. No joint venture or partnership is formed as a result of the
Grant Agreement.
The Grantee. its successors and assigns, will protect, save. and hold harmless the Department and Ute State of
Alaska and their authorized agents and employees, from all claims. actions, costs, damages. or expenses of
any nature whatsoever by reason of the acts or omissions of the Grantee, its subcontractors. assigns, agents,
contractors, licenses, invitees, employees, or any person whomever arising out of or in connection with any
acts or activities authorized by this Grant Agreement. The Grantee furlhcr agrees to defend the Department
and the State of Alaska and their aulhorized agents and employees in any litigation. including payment of any
costs or attorney's fees for any claims or actions commenced thereon arising out of or in connection with acts
or activities authorized by lhis Grant Agreement. This obligation shall not include such claims, costs,
damages. or expenses which may be caused by the sole negligence of the Department of the State of Alaska
or their authorized agents or employees, provided. that if the claims or damages are caused by or result from
the concurrent negligence of (a) the Department and the Stale of Alaska and their agents or employees, and
(b) the Grantee. its agents or employees, this indemnity provision shall be valid and enforceable only to the
extent of the negligence of the Grantee, or Grantee's agents or employees,
Legal Authority
The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to
execute the project described in this Grant Agreement by signing the Grant Agreement document. The
Granlee's relation to the Department and the State of Alaska shall be at all times as an independent Grantee,
Waivers
No conditions or provisions of this Grant Agreement may be waived unless approved by the Department in
writing. The Department's failure to insist upon strict perfonnance of any provision of the Grant Agreement,
or to exercise any right based upon a breach thereof. or the acceptance of any perfonnance during such a
breach, shall not constitute a waiver of any right under this Grant Agreement.
Alaska Hire
The Grantee shall work cooperatively with the Department, lhe Department of Labor and Workforce
Development and other Stale of Alaska agencies, as appropriate, on programs and other initiatives that
support the goal of increasing thc numbers of Alaskan residents in the State's workforce.
Access to Records
The Department and duly authorized officials of the State of Alaska shall have full access and the right to
examine, excerpt, or transcribe any pertinent documents, papers. records, and books of the Grantee, and of
persons or organizations with which the Grantee may contract, involving transactions related to the project
and this Grant Agrccment.
Reports
The Grantee, at such times and in such forms as the Department may require, shall furnish the Department
with such periodk reports as it may request pertaining (u the activitie~ undertaken pursuant to this Grant
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Alutiiq Pride Sileilfwh Hatchl'rY Opera/ions: Attachment C
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A/utiiq Pride S/wllfisll Hatchery Operations: Attachment C
The Grantee shall bind all subcontractors to each and every applicable Grant Agreement provision. Each
subcontract for work to be performed with funds granted under this Grant Agreement shall specifically
include a provision that the Department and the State of Alaska are not liable for damages or claims from
damages arising from any subcontractor's performance or activities under the terms of the subcontracts.
The Grantee shall remain fully obligated under the provisions of this Grant Agrecmenl notwithstanding its
designation of any third party or parties of the undertaking of all or any part of the project described herein.
Any subcontractor that is not the Grantcc shall be required by the Grantee to comply with all the provisions
of this Grant Agreement.
None of the work specified in this Grant Agreement shall be contracted by the Grantee without priOf
approval of the Department. No permission for subcontracting shall create, between the Department or the
State of Alaska and the subcontractor, any contract or any relationship,
Obligations Regarding Third-Party Relationships
The Grantee agrees to keep such records as the Department may require. Such records will include
information pertaining to grant awards and authorizations, obligations, unobligated balances, assets,
liabilities. outlays and income. They will also include information pertaining to project performance and
efforts to comply with the provisions of the Grant Agreement.
Rerord Keeping
The Grantee or the Deparbnent may request an amendment or modification of this Grant Agreement.
However. such amendment or modification shall not take effect until approved, in writing, by the Department
and the Grantee.
Amendments aDd Modifications
The Grantee shall remain in compliance with all slate and federal taxes; the Department may require
documentation of the Grantee's tax status,
T....
The Grantee shall establish and maintain a financial management and accounting system that conforms to
generally accepted accounting principles,
Financial Management and Accounting
The Grantee shall not assign any interest in this Grant Agreement and shan not transfer any interest in the
same (whether by assignment or notation).
Assignability
The Grantee shall retain financial and other records relating to the perfunnance of this Grant Agreemenl for a
period of three years from the date when the grant is officially closed out or unlil final resolution of any audil
findings, claims, or litigation related to the grant.
Retention of Records
Upon termination of this Grant Agreement aml thereafter for a period not to exceed the years, the
Department may contact the Grantee for information for the sole purpose of determining whether the project
proved valuable in meeting the Department's long-term goals.
Continuing Information
Agreement. including the final close-out report, the costs and obligations incurred ill cOllnection Lhcrcwith,
and any other matters covered hy Lhis Grant Agreement.
Rev2Al6
Article 15.
Artide14.
Article 13.
Article 12.
Article 11.
Article 10,
Article 9.
Article 8,
Artide16,
Article 17.
Article 18.
Article 19.
Article 20.
Article 21.
Rev 2106
Conflict of Interest
No member of Congress; the Alaska Legislature; officer or employee of the Department; no member of the
governing body of the jurisdiction in which the project is undertaken or located; and no other official of such
locality or localities who exercises any functions or responsibilities with respect to the project during his or
her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in any contract,
subcontract. or the proceeds thereof, for work to be performed in connection with the project assisted under
this Grant Agreement.
The Grantee shall incorporate, or cause to incorporate, in all such contracts or subcontracts, a provision
prohibiting such interest pursuant to the purpose of this provision.
Political Activity
No portion of the funds provided hereinunder shall be used for any partisan political activity or to further the
election or defeat of any candidate for public office or influence the approval or defeat of any ballot issue.
Notices
The ('J1"antee shall comply with all public notices or notices to individuals required by applicable state and
federal laws and shall maintain a record of this compliance.
Prohibition Against Payment of Ronus or CommJssion
The assistance provided under this Grant Agreement shall not be used in payment of any bonus or
commission for the purpose of obtaining approval or concurrence under this contract provided; however,
reasonable fees of bona fide technical consultant, managerial, or other such services, other than actual
solicitation, are not hereby prohibited if otherwisc cligible as project costs.
Termination by Mutual Agreement
This Grant Agreement may be terminated, in whole or in part, prior to the completion of contTact project
activities when both parties agree that continuation is not feasible or would not produce beneficial results
commensurate with the further expenditure of funds. The Department will determine whelher an
environmental review of the cancellalion is required under State and/or Federal law, The parties must agree
on the termination conditions, including effective date and the portion to be tenninated. The Grantee shall
not incur new obligations for the terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The Department shall make funds available to the Grantee to pay for
allowable expenses incurred before the effective date of termination.
Termination for Cause
The Department may terminate lhis Grant Agreement if its is detennined to be in lhe State's best interest,
If the Grantee fails to comply with the terms of this Grant Agreement, or fails to use the grant for only those
purposes set forth herein, the Department may take the following actions:
A. Suspension - After notice in writing by certified mail to the Grantee, the Department may suspend the
grant and withhold any further payment or prohibit the Grantee from incurring additional obligations of
grant funds, pending corrective action by the Grantee or a decision to terminate. Response must be
received within fifteen (IS) days of receipt of the written notice.
B. Termination -- The Department may terminate the grant in whole or in part, at any time before the final
grant payment is made. The Department shall promptly notify the Grantee in writing of its
determination to terminate, the reason for such termination, and the effective date of the termination.
Payments made to the Grantee or recoveries by the Department shall be in accordancc with the legal
rights and liabilities of the parties.
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Aluliiq Pride Shellfish Hatchery Operations; Allacllmem C
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The Grantee is responsible for obtaining any necessary liability insurance. In addition, the Grantee shall
provide and maintain Workers' Compensation Insurance as required by AS 23.30 for all employees engaged
in work under this Grant Agreement. The Grantee shall require any contractor to provide and maintain
Workers' Compensation Insurance for its employees as requinxl by AS 23.30.
Insurance
If the grant project involvcs the occupancy and use of real property, the Grantee assures that it has the legal
right to occupy and use sueh real property for the purposes of the grant, and further that there is legal access
to such property.
Site Control
In the event that the Grantee subcontracts for engineering services, the Grantee will require that the
engineering firm certify fuat it is authorized to do business in the State of Alaska, In the event that the
engineering firm is also thc project administrator, the Grantee shall require that the bond or insurance shall be
for not less than the amount of the entire project.
Subcontracts for Engineering Services
The Department makes no claim to any capital facilities or real property improved or constructed with funds
under this Grant Agreement and, by this grant of funds, does not and will not acquire any ownership interest
or title to such property of the Grantee. The Grantee shall assume all liabilities arising from the ownership
and operation of the project and agrees to hold the Department and the State of Alaska harmless from any
and all causes of action arising from the ownership and operation of the project.
Ownership of Project/Capital Facilities
This Grant Agreement shall be governed by the laws and statutes of the State of Alaska. The venue of any
suil hereunder may be in the Superior Court for the First Judicial District, Juneau, Alaska,
Jurisdiction
This "Disputes" clause does not preclude the consideration of questions of law in connection with the
decision provided for in the preceding paragraph provided that nothing in the Grant Agreement shall be
construed as making final the decisions of any administrative official, representative, or board on a question
of law.
Except as otherwise provided in this agreement, any dispute conccming a question of fact arising under this
agreement that is not disposed of by mutual agreement shall be decided by the Department; the Department
shall reduce its decision to writing and mail or othcrwise furnish a copy thereof to the Grantee. The decision
of the Department shall be final and conclusive,
Disputes
All remedies conferred on the Department by this agreement or any other inslrument or agreement are
cumulative, not exclusive, and may be exercised concurrently or consecutively at the Department's option,
In the event of a default or violation of the terms of the Grant Agreement by the Grantee, the Department
may institute actions to recover all or part of the project funds paid to the Grantee. Repayment by the
Grantee of grant funds under this recovery provision shall occur within thirty (3D) days of demand.
Recovery of Funds
In the event funding from the state. federal, or othl.:r sources is withdrawn, reduced, or limited in any way
after the effective date of this Grant Agreement and prior to normal completion, or the Department finds that
it is in the ,state's best interest to do so, the Department may terminate the agreement, reduce funding, or re-
negotiate subject to those new funding limitations and conditions. A termination under this article shall be
implemented under the same conditions as a termination under Article 21 of this Attachment,
Withdrawal of Funds
Rev 2106
Article 29.
Article 28.
Article 27.
Article 26.
Article 25.
Article 24.
Article 23.
Article 22,
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Article 30.
Article3!.
Article 32.
Article 33.
Article 34.
Article 35,
Article 36,
RevY06
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Governing Law
This Grant Agreement is governed by the laws of the State of Alaska. The Grantee shall perform all aspects
of this project in compliance wilh the appropriate laws and regulations. It is the responsibility of the Grantee
to ensure that all pcrmils required for the construction and operation of this project by the Federal, State, or
Local governments have been obtained.
Budget Flexibility
Notwithstanding the provisions of Article 13, Attachment C General Provisions, the Grantee may revise the
project budget in Attachment A without a formal amendment to the Granl Agreement, Such revisions are
limited to an increase within each line item often percent (10%) over the entire term of this agreement. Such
budget revisions shall be limited to changes to existing budget line items. Budget revisions may not be used
to increase any budget item tor pr~iect administrative expenses. Changes to the budget beyond the limits
authorized by this provision may only be made by a formal amendment to this agreement. Budget revisions
must be explained in the Performance Reporl Form for the same reporting period.
Equal Employment Opportunity (EEO)
The Grantee may not discriminate against any employee or applicant for employment because of race,
religion, color, national origin, agc, physical handicap, sex, marital status, changes in marital status,
pregnancy or parenthood. The Grantee shall post in a conspicuous place, available to employees and
applicants for employment, a notice setting out the provisions of lhis paragraph.
The Grantee shall state, in all solicitations or advertisements for employees to work on state funded projects,
that it is an equal opportunity employer (EEO) and that all qualified applicants will receive consideration for
employment without regard to race, religion, color, national origin, age, physical disability, sex, marital
status, changes in marital status, pregnancy or parenthood.
The Grantee shall include the provisions of this EEO article in every contract relating to this Grant
Agreement and shall require the inclusion of these provisions in every agreement entered into by any of its
conlractofli, so that those provisions will be binding upon each contractor or subcontractor,
Public Purposes
The Grantee agrees that the project to which this Grant Agreement relates shall be dedicated to public
purposes tor its useful life. The benefits of the project shall be made available without regard to race,
religion, color, national origin, age, physical disability, sex:, marital status, changes in marital status,
pregnancy or parenthood.
If the Grantee is a non-profit corporation that dissolves, the assets and liabilities from the grant project are to
be distributed according to statulory law, AS 10.20.290-10.20.452,
Operation and Maintenance
Throughout the life of the project, the Grantee shall be responsible for the operation and maintenance of any
facility, equipment, or other items acquired under this grant.
Assurance
The Grantee shall spend monies awarded under this grant only for the purposes specified in this Grant
Agreement.
Current Prevailing Rates of Wage and Employment Prefercnce
Certain grant projects are constraincd by the provisions of AS 36. PUBLIC CONTRACTS. To the extent
that such provisions apply to the project which is the subject of this Grant Agreement, the Grantee shall pay
the current prevailing rates of wagc to employees as required by AS 36.05.010. The Grantec also shall
require any contractor to pay thc currcnt prevailing rates of wage as required by AS 36.05.010.
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The Americans with Disabilities Act (ADA) prohibits discrimination against persons with disabilities. Title I
of the ADA prohibits discrimination againsl persons wilh disabilities in employment and provides that a
reasonable accommodation be provided for applicants and employees. Title II of the Act prohibits public
agencies from discriminating against individuals with disabilities in the provision of services, programs, or
activities. Reasonable accommodation must be made to ensme or allow access to all services, programs, or
activities. This section of lhe Act includes physical access to public facilities and requires that public entities
must, if necessary, make modifications to their facilities to remove physical barriers to ensure access by
persons with disabilities. All new construction must also be accessible to persons with disabilities. A public
entity's subgrantces or contractors must also comply with the ADA provisions. Grantees are responsible for
assuring lheir compliance with the ADA.
Americans with Disabilities Act
A. All costs to be paid with grant funds have been incurred with the exception of close-out costs and any
unsettled third-party claims against the Grantee. Costs are incurred when goods and services are
received or contract work is performed.
B. The last required performance report has been submitted. The Grantee's failure to submit a report will
not preclude the Department from effecting close-out if it is deemed to be in !:he State's interest. Any
excess grant amount that may be in lhe Grantee's possession shall be returned by the Grantee in the
event of the Grantee's failure to finish or update the report.
C. Other responsibilities of the Grantee under this Grant Agreement and any close-out agreement and
applicable laws and regulations appear to have been carried out satisfactorily or there is no further State
interest in keeping the grant open for the purpose of securing performance.
The Department will advise the Grantee to initiate c1ose.out procedures when the Department detennines, in
consultation with the Grantee, lhat there are no impediments to close-out and that the following criteria have
been met or soon will be met:
Close-Out
The Grantee shall comply with the audit requirements established by 02 AAC 45.010. set forth in Appendix
A of this Grant Agreement.
Audit Requirements
The Department's failurc to insist upon the strict performance of any provision of the Grant Agreement or to
exercise any right based upon breach thcrcof or the acceptance of any performance during such breach, shall
not constitute a waiver of any rights under this Grant Agreement.
Performance
If any provision under this Grant Agreement or its application to any person or circumstance is held invalid
by any court of rightful jurisdiction, this invalidity docs not affect other provisions of the contract agreement
which can be given effect without the invalid provision.
Severability
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Article 41.
Article 40.
Article 39.
Article 38.
Article 37,
Appendix A
Audit Regulations
Article 1. If the Grantcc is a local government or non-profit organization and receives less than $500,000 in payments based
on grant agreements in anyone fiscal year from any combination of State of Alaska agencies, the Department
reserves the right to request an independent audit performed for that fiscal year.
Article 2. If the Grantee is a for-profit organization and receives an award greater than $ ]00,000 or if the Grantee is a local
government or non-profit organization and receives $500,000 or more in financial assistance in a single fiscal year
from any combination of State of Alaska agencies, it must conform to the audit requirements set out below (audit
requirements for for-profit organizations are required only for the funded project):
Authority: AS 37.05.020
AS 37.05.030
AS 37.05.190
2 AAC 45.010. AUDIT REQUIREMENTS
(a) As part of the financial information required under AS 37.05.030, a state agency that enters into a financial assistance
agreement to provide financial assistance to an entity shall, in coordination with any other state agency providing financial
assistance to that entity, submit to the Department of Administration through lhe state coordinating agency an audit of the
recipient entity if that entity is subject to an audit under this section. The audit must be conducted and submitted as
described in this section. In order to ensure compliance with this subsection, the audit requirement of this section must be
contained in any financial assistance agreemcnt entered into by a state agency.
(b) An entity that expends financial assistance with a cumulative total of $500,000 or more dwing the enlity's fiscal year shall
submit to the state coordinating agency, an audit report for the audit period by
(1) theearlierof
(a) 30 days after the entity receives its audit report for the audit period; or
(b) nine months after the end of the audil period; or
(2) a later date than the date calculated under (I) of this subsection, if
(a) the state agency that provides the financial assistance agrees to the change of date; and
(b) the agreement under (a) of this paragraph is made in.
(i) writing; and
(ii) advance of the date calculated under (1) of this subsection.
(c) An audit required by this section must be conducted by an independent auditor, according to the following audit standards
effective at the time of review.
(1) Government Auditing Standards, 1994 revision adopted by the comptroller general of the United States; or
(2) Generally accepted auditing standards, as accepted by the American Institute of Certified Public Accountants on
January I, 1998 for the type of entity being audited; or
(3) State of Alaska Audit Gujde and Compliance Supplement for State Single Audits. May 1998 revision, prepared by the
state coordinating agency.
(d) An audit report required under this section must report on the following: (1) The system of internal controls of the entity
and the auditor's identification of reportable conditions and material weaknesses of the entity, using the applicable
standards set out in (c) of this section; (2) the entity's compliance with applicable state statutes and regulations and
applicable financial assistance agreements affecting the expenditure of the financial assistance; the report must identify
findings and known qucstioned costs that exceed $1,000 in [he aggregate for all transactions of expenditures tested for thc
financial assistance bcing audited; (3) the entity's financial slatements; and (4) the schedule of state financial a.~sistance.
(e) As part of an audit n:purt required under this section, a recipient must provide (1) written comments on any (A) findings;
(B) known questioned costs; (c) reportable conditions, including material weaknesses; and (D) recommendations contained
in thc audit report; (2) the entity's plan for corrective action, if any findings are identified or any reconunendations are
made in the audit report; (3) the status of the entity's implementation of any plans for corrective action... related to (A) the
audit reports required under this section for the fiscal year before the audit period; and (B) unresolved findings of audit
reports required by this section for audit periods before those specified in (A) of this paragraph; and (4) a written
explanation of the reasons why corrective action will not be taken if the entity does not intend to take corrective action on
the findings and recommendations in any audit report required by this section.
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(b) An entity may agree to be subject to the provisions of the amended version of this chapter, effeclive July I, 1998. for an
audit period beginning on or after July 1, 1997 and cnding on or bcforc Junc 30, 1998, oy voluntarily submitting an audit
that complies with those provisions.
2 AAC 45.070. APPLICABILITY
(a) The amended version of this chapter, effectivc July 1, 1998, applies to an audit for an audit period that begins or continues
after June 30. ] 99R.
2 AAC 45.060. EXTERNAL QUALITY REVIEW OF AUDIT ORGANIZATION
The state coordinating agency may only accept an audit under this section, if that organization has submitted to thc state
coordinating agency a copy of the organization's most recent external quality review report that meets the standards described
in 2 AAC 45.01O(c)(l) and (2).
(0) Repealed 71l198.
(n) Financial assistance in a form listed in (m) of this section is not exempt from compliance testing if the entity meets the
threshold monetary requirement under (b) oftbis section.
(m) Financial assistance in the following form is not included when calculating whether an entity meets the threshold monetary
requirement under (b) of this section:
(1) state revenue sharing and municipal assistance money provided under AS 29.60.010 - 29.60.375;
(2) amusement and gaming lax money provided under AS 43.35.050;
(3) aviation fuel tax money provided under AS 43.40.010;
(4) electric and telephone cooperative gross revenue tax refunds provided under AS 10.25.570;
(5) alcoholic beverage liccnse fee refunds provided under AS 04.11.610;
(6) fisheries tax refunds provided under AS 43.75.130.
(I) For purposes of this section, if an entity has not identified its fiscal year, that entity's fiscal year is July 1 through June 30,
(k) Repealed 711198,
U) A third party that rcceives financial assistance through an entity, in an amount described in this section, is subject to the
applicable requirements of this section. An entity that disburses $500,000 or more in state financial assistance to a third
parly shall ensure that the third party complies with the requirements of this section. That entity shall also ensure that
appropriate corrective action is taken within six months after a third party's noncompliance with an applicable state statute
or regulation, or financial assistance agreement, is disclosed.
(i) Unless additional audit requirements arc imposed by state or federal law, a state agency that provides financial assistance
to an entity shall accept the audil required by this section in satisfaction of any other audit requirement. If additional audit
work is necessary to meet the needs of a state agency, the audit work must be based on audits required by this section.
Nothing in this subsection authorizes a state agency to seek payment from the entity for the additional audit work.
(h) An entity shall providc the state coordinating agency with sufficient copies of each audit rcport to allow submission of a
copy to each state agency providing financial assistance to the entity, The state coordinating agency shall determine if
auditing standards have been met and shall forward a copy of the audit to the Deparlment of Administration, upon request,
and other appropriate state agencies. The state coordinating agency shall coordinate the assignment of the resolution to
one state agency, if the exceptions concern more than one state agency. The applicable state agency providing financial
assistance to the entity must meet its responsibilities under other law for ensuring compliance with the audit report.
(g) An audit required by this section must cover either (1) the entire operations of the entity; or (2) the program of the entity
for which financial assistance was expended, if (A) the entity receives financial assistance from only one state program of
a state agcncy; and (B) the entity does not expcnd the financial assistance being audited. for indirect costs, including
allocations of indirect costs.
(I) An audit report required under this section need not evaluate the effectiveness of a program funded by state financial
assistance. However, a program evaluation or financial monitoring may be conducted by the state agency or requested of
the entity by the state agency that entered into the financial assistance agreement.
2 AAC 45.080. EXEMPTIONS FROM FINANCIAL ASSISTANC
(a) For purposes of this chapter, "financial assistance" does not include the following: (1) public assistance provided under AS
47; (2) goods or services purchased for the direct administration or operation of state government; (3) moneys advanced to
an entity under one or more state loan programs; (4) power cost equalization payment.~ made to an electric cooperative on
behalf of its customers; (5) scholarships, loans, or other tuition aid provided to students, but paid to an education
institution on thcir behalf.
(b) In addition to the exemptions set out in (a) of this section, for a !.hird party, "financial assistance" does not include goods
purchased from the third party for direct administration or operation of the entity that received financial assislance.
2 AA C 45.090. DEFINITIONS
For purposes of this chapter, unless the context otherwise requires,
(1) "audit period" means the entity's fiscal year in which the entity expended financial assistance;
(2) "entity" does not include the University of Alaska or any other state agency;
(3) '.financial assistance" means state grants, contracts, provider agreements, cooperative agreements, and all forms of
state financial assistance to an entity; "financial assistance" includes all forms of state financial assistance provided
through an entity to a third party;
(4) "known questioned costs" means those questioned costs specifically identified by the auditor in the audit conducted
under this chapter;
(5) "state coordinating agency" means the Office of Management and Budget (OMB), Office of the Governor, or OMB's
designee.
Autbority: AS 37.05.020
AS 37.05.030
AS 37.05.190
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Federal fuods cannot be used for travel on foreign air carriers.
Federal funds cannot be expended for the purpose of providing transportation, travel or any other expenses for any
f~eral employee.
c. Financial Compliance
Accurate accounting records documenting the federal funds must be maintained by the Grantee.
B. Eligible Beneficiaries Compliance
. The auditor is not expected to ascertain beneficiary compliancc.
SU2"2ested Audit Procedures
. Identify activities funded by the Alutiiq Pride Shellfish Hatchery grant funds and assess consistency with
program objectives.
. Test expenditures and related records.
Eligible activities may include, but are not limited to, overhead expenses, seed costs, and payroll.
A. Eligible Activities Compliance
3. Compliance Requirements and Suggested Audit Procedures
The State of Alaska, Office of the Governor was awarded a State of Alaska Economic Assistance Fisheries Disaster grant.
A portion of the grant is administered by the Department of Commerce, Community and Economic Development,
primarily through competitive subgrants with local governments, organizations, and non-profit and for-profit entities as
appropriate, and special grants for specific public-interest projects.
2. Program Procedures
The Fish Cabinet, a cabinet-level group of representatives from the departments of Fish & Game. Labor & Workforce
Development. and Commerce, Community & Economic Development, and the Governor's Office, determine the use of
funds under the Revitalization Strategy. The Cabinet determined that the shellfish mariculture industry is a key
diversification tool for salmon fishennen that need other economic opportunities. As such, the Cabinet has allocated
significant resources to the mariculture industry to expedite its rate of development.
The Revitalization Strategy is a multi-level, multi-year plan designed to spur increased productivity and innovation in the
Alaska Fishing industry by investing considerable resources into critical commercial fisheries infrastructure, capital
improvement projects, quality improvements, and marketing.
The Alaska Fisheries Revitalization Strategy combines federal Fisheries Disaster funds authorized under Title V ~Fisheries
Disaster, Section 501(b) of the 2003 Federal Appropriations Bill and Southeast Sustainable Salmon Fund monies,
authorized under the Pacific Coastal Salmon Recovery Fund.
1. Program Objectives
Appendix Bl
Federal Audit Compliance Supplement
State of Alaska Economic Assistance
Fisheries Disaster Relief
CFDA Number 11.452/11.438
Su~~ested Audit Procedures
. Ascertain that separate and accurate accounting records are established Cor the expenditure of the Ccderal
funds.
. Determine that no project funds have been used for any expenses for any federal employee and that no grant
funds have been used for travel on foreign air carriers.
. Test expenditures and related records,
D. Reportinx Compliance
The Grantee is required to submit monthly performance reports.
SU2l!:ested Audit Procedures
. Examine copics of reports and determine completeness. accuracy, and timeliness of submission.
. Trace data in selected reports to underlying documentation,
E. Special Provisions Compliance
The Grantee must comply. where applicable, with the following Financial Assistance Standard Tenus and Conditions
for U.S. Department of Commerce grants:
. Public Law 88-352, Title VI, Civil Rights Act of 1965 (42 USC 2000d et seq., and 15 CFR Part 8)
. Age Discrimination Act of 1975, As Amended (42 use 6101-6107)
. Section 504 of the Rehabilitation Act of 1973, As Amended (29 use 794)
. Title IX of the Education Amendments of 1972, As Amended (20 USC 1681-1683 and 1685-1686)
. Executive Order 11246, Parts II and III, As Amended by Executive Orders 11375, 11478, 12086, and 12107,
and the regulations issued pursuant thereto (41 CFR Chapter 60) relating to nondiscrimination provisions
required for Federally assisted construction contracts. Executive Orders 11625, 12432, and 12138
. Americans with Disabilities Act of 1990 (42 use 12101 et seq.)
. Executive Orders 11625, 12432, and 12138The Grantee, if applicable, must comply with provisions that a
unit of general local government should administer its activities funded with federal assistance in a manner to
encourage use of minority and women's business enterprises
. Debarment and Suspension (Executive Orders 12549 and 12689) and Govemmentwide Debarment and
Suspem:ion (Nonprocurement) (15 CPR Part 26, Subparts A-E)
. Drug-Free Workplace Act of 1988 (public Law 100-690, Title V. Subtitle D and 15CFR26, Subpart F
. Byrd Anti-Lobbying Amendment (public Law 101-121, 31 USC 1352 and 15 CFRPart 28)
. Patent Notification Procedures (Executive Order 12889)
. Rights to Inventions Made by Non-Profit Organizations and Small Business Firms Under Government
Grants, Contracts, and Cooperative Agreements, (37 CFR Part 401)
SU22ested Audit Procedures
. Review and assess for adequacy the Grantee's policies and procedures for assuring nondiscrimination in the
use of and/or benefits derived from the grant funds.
. Review and assess for adequacy the Granlee's policies and procedures for encouraging the use of minority
and women's business enterprises.
. Review and assess for adequacy the Grantees procedures for compliance with debarment and suspension
requirements.
. Review and assess for adequacy the Grantee's drug-frce workplace policies.
. As appropriate, review and assess Grantee's compliance with restrictions on lobbying activities and
disclosure rcquircments.
. As appropriate, review and assess Grantee's procedures for patent notification and invention rights
requirements.
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$100,000 per m:currem:e/annual aggregate
$250,000 per occurrence/annual aggregate
$500,000 pcr tlccurrcnce/annual aggregate
Ncgotiablc . Rcfer to Rigk Managcmcnt
Under $100,000
$100,000 - $499,999
$500,000 - $999,999
$1,000,000 or over
Minimum Required Limits
Contract Amount
2.4 Professional Liability Insurnnce Required when contracting with another organization for significant
portions of thc project and covering all errors, omissions or negligent acts of the contractor,
subcontractor or anyune directly or indirectly employed by them, made in the performance of this
contract which result in IInancialloss to the State. Limits required are per the following schcdule:
2.3 Comprehensive Automobile Liability Insurance: Covering all owned, hired, and non-owned vehicles
used for grant activities with coverage limits not less than $100,000 per personl$300,OOO per OCCWTence
bodily injury and $50,000 property damage.
2.2 Workers' Compensation IlNIrance: If employing, the contractor shall provide and maintain, for an
employees of the contractor engaged in work under this contract, Workers' Compensation Insurance as
required by AS 23.30.045, The contractor shall be responsible for Workers' Compensation Insurance for
any subcontractor who directly or indirectly provides services under this contract. This coverage must
includc statutory coverage for states in which employees are engaging in work and employer's liability
prolection is not less than $100,000 per occurrence. Where applicable, coverage for all federal acts (i.e.
USL & H and Jones Acts) must also be included.
2.1 Comprehensive (Commercial) General Liability Insurance: With coverage limits not less than
$300,000 combined single limit per occurrence and annual aggregates where generally applicable and
shall include premises-operations, independent contractors, products/completed operations, broad form
property damage, blanket contractual and personal injury endorsements.
Without limiting contractor's indemnification, it is agreed that the contractor shall purchase at its own
expensc and maintain in force at all times during the performance of services under this agreement the
following policies of insurance if applicable. Where specific limits are shown, it is understood that they shall
be the minimum acceptable limits. If the contractor's policy contains higher limit~, the State shall be entitled
to coverage to the extent of such higher limits. Certificates of Insurance must be furnished to the Contracting
Officer prior to beginning work and must provide for a thirty (30) day prior nol.ice of cancellation, non-
renewal or material change. Failure to furnish satisfactory evidence of insurance or lapse of the policy is a
material breach and grounds for termination of the contractor's services.
Insurance
Article 2.
All actions or claims including costs and expenses resulting from injuries or damages sustained by any
person or property arising directly or indirectly from the contractor's performance of this contract which are
caused by the joint negligence of the state and the contractor shall be apportioned on a comparative fault
basis. Any such joint ncgligence on the part of the State must be a direct result of active involvement by the
State.
The contractor shall indemnify, save harmless and dcfend the state, its officers, agents and employees from
all liability, including costs and expenses, for all actions or claims resulting from injurics or damages
sustained by any person or property arising directly or indirectly as a result of any ad (including equipment
transportation and installation), error, omission or negligent act of the contractor, subcontractor or anyone
directly or indiredly involved or employed by them in the performance of this contract.
Indemnification
Article!.
Appendix B2
Indemnity and Insurance
Appendix C
State Laws and Regulations
The Grantee is required to follow all applicable State and Federal laws when carrying out their project. The following State
Laws and Regulations may assist in determining State requirements to certain projects.
En\"ironmental Conservation--AS 46.03
This chapter of the Alaska Statutes applies to municipalities and could subject them to enforcement actions instituted by the
Alaska Department of Environmental Conservation for air. land and water nuisances. and water and air pollution in a
municipality of 1,000 or illme, and may establish a local air pollution control program.
Alaska Coastal Management Program--AS 46.40
This chapter of the Alaska Statutes establishes a planning program for the use, management, restoration. and enhancement
of the overall quality of the coastal environment. The law provides for the creation of coastal resource districts and the
establishment, review, and approval of district management plans. If a district management plan is not implemented,
enforced, or complied with, enforcement action may follow,
Permits and Environmental Procedures Coordination--AS 46.35
This chapter of the Alaska Statutes establishes the Department of Enviromnental Conservation as the central state agency
for processing environmental pennits issued by State agencies. The law requires a master application form and specifies the
following permits including others designated by the commissioner to which this law applies~
Waste Water Disposal Pennit--AS 46.03.100,18 AAC 72
Solid Waste Disposol--AS 46.03.100, 18 AAC 60
Air Emissions Permit--AS 46.03.150,18 AAC 50.120
Pesticides Permit----AS 46.03.320, 18 AAC 90
Surface Oiling Pennit---AS 46.03.740, 18 AAC 75
Open Burning Permit---AS 46.03.020,18 AAC 50.120
Anadromous Fish Protection Pcrmit---AS 16.05.870, 5 AAC 95.100
Critical Habitat Area Permit--AS 16.20.250-16.20.260
State Game Refuge Land Permit--AS 16.20.050-16.20.060
Encroachment Permit-AS 19.25.200
Utility Permit-AS 19.25.010
Driveway Pennh--AS 19.05.020,17 AAC 10.020
Slate Park Incompatible Use Permit---AS 41.20.020, 11 AAe 18.010
Access Roads Pennii-AS 41.20.020, 11 AAC 13.020
Water Well Permit--AS 31.05.030, 11 AAC 22.140
Brine or Other Salt Water Waste DIsposal Permit--AS 31.05.100, 11 AAC 22.250
Coal Development Permlt----AS 27.20.010. 11 AAC 58.200
Right-of-Way and Easement Permits--AS 38.05.330, 11 AAC 58.200
Special Land Use Permit-AS 38.05.035, 11 AAC 58.210
Tidelands Permit--AS 38.05.035, 11 AAC 62.710
Tidelands Right-ofkWay or Easement Permit---AS 38.05.320, 11 AAC 62.310
Limited Personal Use Pennit~AS 38.05.320, 11 AAC 62.820
Pemlit to Appropriate Water---AS 46.15.040, 11 AAC 72.050
Dam Construction Permit~AS 46.15.040, 11 AAC 72.060
Preferred Use Permit-AS 46.15.040,11 AAC 72.160
Permit for Use of Timher or Materials---AS 38,05.110. 11 AAC 76.185
Authorization for Tidelands Transportation--AS 33.05.110,11 AAC 76.205
Special Material Use Permit-AS 38.05.115, 11 AAC 76.540
Mineral and Geothermal Prospecting Permits--AS 38.05.145
Tide and Submerged Lands Prospecting Permit-AS 38.05.250
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This provision specifies the prOCedure for adoption of a municipal capital construction program and requires the adoption
of an ordinance if a contract or lease requires the payment of money in a fiscal year other than the current fiscal year.
Municipal Budget and Capital Construction Program-AS 29.48.190
This chapter of the Alaska Statutes requires the Department of Public Safety (the State Fire Marshal) to adopt regulations
(currently in the form of Uniform Fire Code, as amended) establishing minimum standards for:
1. Fire protection and suppression equipment;
2. Fire and life safety criteria in commercial, industrial, business, institutional, or other public buildings used for
residential purposes containing four or more dwelling units;
3. Any activity in which combustible or explosive materials are stored or handled in commercial quantities;
4. Conditions or activities carricd on outside a building described in (2) or (3) likely to cause injury to persons or
property,
Fire Protection--AS 18.20
This chapter of the Alaska Statutes applies [Q public construction of any nature undertaken by the State, or by a
governmental agency of the State, or by a private person under contract with or licensed by the State or a governmental
agency of the State. The Department of Natural Resources must be notified if the construction is planned for an
archaeological site. The department may stop the constmction to determine the extent of the hisloric, prehistoric, or
archaeological values.
Historic Preservation Act--AS 41.35
Surface Use Permit-AS 38.05.255, 11 AAC 86.600
Burning Permit During Fire Season--AS 41.15.050,11 AAC 92.010
Miscellaneous Stote Land Use Permit-AS 38.05.035, 11 AAC 96.010
Rightaof.Way Permit--AS 38.05.330
Appendix D
Special Requirements and Assurances for Federally Funded Projects
The Grantee is required to follow all applicable State and Federal laws when carrying out their projcct_ The following federal
requirements may assist in assuring compliance to this federally funded project.
1. HISTORIC PRESERvATION
a. The National Historic Preservation Act of 1996 (16 use 470)
Prior to undertaking any activity under this contract, the Grantee shall evaluate the effects of the activity on any
district, site. building structure, and object listed in, or eligible fOT, the National Register of Historic Places.
h. Executive Order 1 ]593, Protec:tion and Enhancement of the Cultural Environment, May 13, 1971
The Grantee shall assure that plans for federally funded projects contribute to the preservation and enhancement
of sites. structures, and objects of historical, architectural. or archaeological significance.
c. The Reservoir Salvage Act of 1960, As Amended hy the Archaeological and Historic Preservation Act of
1974 (161lSC 4693-1 et seq.)
Under the Reservoir Salvage Act, the Grantee must comply with provisions for the preservation of historical and
archaeological data (including relics and specimens) that might otherwise be irreparably lost or destroyed as a
result of any alteration of the terrain caused as a result of any federal construction project or federally licensed
activity or program. Whenever any federal agency finds, or is notified in writing by an appropriate historical or
archaeological authority, that its activities in connection with any federal construclion project or federally
licensed project, activity, or program may cause irreparable loss or destruction of significant scientific,
prehistoric, historical, or archaeological data, the federal agency must notify the D.S, Secretary of the Inlerior in
writing and provide appropriate information concerning the project or program activity.
2. ENvIRONMENTAL
a. The National Environmental Policy Act of 1969 (42 use 4321 et seg., and Executive Order 11514)
The Grantee shall comply with the provisions of the National Environment Policy Act of 1969. The purpose of
this act is to attain the widest use of the environment without degradation, risk to health or safety, or other
undesirable and unintended consequences. Environmental review procedures, including determining and
publishing of Finding of Significance or of No Significance for a project, are a necessary part of this process,
Pursuant to these provisions, the Grantee must also submit environmental certifications to the Department when
requesting that funds be released for the project. The Grantee must certify that the proposed project will not
significantly impact the environmenl and that the Grantee has complied with environmental regulations and
fulfilled its obligations to give the public notice of the environmental findings.
b. Lead-Based Paint Poisoning Prevention Act (42 use 4801 et seq.)
The Grantee shall comply with the provisions of the Lead-Based Paint Poisoning Prevention Act, which prohibits
the use of lead-based paint in residential structures constructed or rehabilitated with federal assistance of any
kind.
c. Flood Disaster Protection Act of 1973, As Amended
The Grantee shall comply with the flood insurance purchase requirement of Section I02(a) of the Flood Disaster
Protection Act of 1973, Public Law 93-234,87 Stat. 975, approved December 31,1973. Section 102(a) requires,
on and afler March 2, 1974, the purchase of flood insurance in communities where such insurance is available as
a condition for the receipt of any federal financial assistance for construction or acquisition purposes for use in
any area that has been identified by the Federal Emergcncy Managemenl Agency as an arca having special flood
hazards, The phrase "federal financial assistance" includes any form of loan, grant, guaranty, insurancc payment,
rebate, subsidy, disaster a~sistance loan or grant, or any form of direct or indirect federal assistance.
d. Executive Order 1I988. May 24, 1977 Floodplain Management (42 FR 26951 et seq.)
The Grantee shall comply with the provisions of Executive Order 11988. The intent of this Executive Order is to
(1) avoid, to the extent possible, adverse impacts associated with the occupancy and modification of floodplains
and (2) avoid direct or indirect support of floodplain development wherever thcre is a practical alternative.
R~1i2lO6
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ivv
Alutiiq Pride Shellfish Ha/chery UperatiOlls: Appendix D
Page 1 of6
I. The Clean Air Act, As Amended (42 USC 7401 ct seq.)
The Grantee shall comply with the Clean Air Act, as amended, which prohibits (1) engaging in, (2) supporting in
any way or providing financial assistance for, (3) licensing or permitting, or (4) approving any activity which
does not confonn to the state implementation plan for natural primary and secondary ambient air quality
standards. -- r 7
.......
Rev 2106 Almiiq Pride Shellfish Hatchery Opera/ions: Appendix D Page 2 of6
k. The Federal Water Pollution control Ad of 1972, As Amended, including the Clean Water Act of 1977
(Public Law 92-212 and 33 use 1251 et seq.)
Thc ('ffantee must assure compliance with the Water Pollution Control Act, as amended, which provides for the
restoration of chemical, physical, and biological integrity of the nation's water.
j. The Wild and Scenic Rivers Act or 1968, As Amended (16 use 1271 et seq.)
The Grantee shall comply with the Wild and Scenic Rivers Act of 1968, as amended. The purpose of this Act is
to preserve selected rivers or sections of rivers in their free-flowing condition. to protect the water quality of such
rivers, and to fulfill other vital national conservation goals. Federal assistance by loan, grant, license, or other
mechanism cannot be provided to water resources construction projects that would have a direct and adverse
effect on any river included, or designated for study or inclusion, in the National Wild and Scenic River System.
i. The Endangered Species Act of 1973, As Amended (PL 93-205)
The Grantee shall comply willi the Endangered Species Act of 1973, as amended. The intent of this Act is to
ensure that all federally assisted projects seek to preserve endangered or threatened species. Federally authorized
and funded projects must not jeopardize the continued existcnce of endangered and threatened species or result in
the destruction or modification of habitat of such species which is determined by the U,S, Department of the
Interior, after consultation with the state, to be critical.
h. The Safe Drinking Water Act of 1974, As Amended (PL 93-523)
The Grantee must comply with the Safe Drinking Water Act of 1974, as amended, which is intended to protect
underground sources of water. No commitment of federal financial assistance, according to the Act, shall be
entered into for any project which the U.S. Environmental Protection Agency determines may contaminate an
aquifer which is thc sole or principal drinking water source for an area.
g. Coastal Barrier Resources Act, As Amended (16 USC 3504 and 3505)
The Grantee shall comply with the Coastal Barrier Resources Act of 1982, as amended. The intent of this Act is
to minimize the loss of human life, wasteful expenditure of federal revenues, and the damage to fish, wildlife, and
other natural resources associated with coastal barriers by restricting future federal expenditures and financial
assistance which have the effect of encouraging development of coastal barriers, by establishing a Coastal
Barriers Resources System, and by considering the means and measures by which the long-term conservation of
these fish, wildlife, and other natural resources may be achieved. Questions pertaining to this Act should be
directed to the Secretary, U.S. Department of the Interior.
f. Coastal Zone Management Act of 1972. As Amended (16 USC 1451 et seq.)
The Grantee shall cumply with lhe Coastal Zone Management Act of 1972. as amended. The intent of this Act is
to preserve. protect, develop, and where possible, restore or enhance the resources of the nation's coastal rune,
Federal agencies cannot approve assistance for proposed projects thal are inconsistent with the State's Coastal
7..one Management program, except upon a finding by the U.S. Secretary of Commerce that such a project is
consistent with the purpose of this chapter or necessary in the interests of national security.
e. Executive Order 11990, May 24, 1977 Protection of Wetlands (42 FR 26951 et seq.)
The Grantee shall comply with Executive Order 11990. The intent of this Executive Order is to (1) avoid, to the
extent possible, adverse impacts associated with the destruction or modification of wcUands and (2) to avoid
direct or indirect support of new construction in wetlands wherever there is a practical alternative. The Grantee,
to the extent permitted by law, must avoid undertaking or providing assistance for new construction located in
wellands unless (1) there is no practical alternative to such construclion and (2) the proposed action includes all
practical measures to minimize harm to wetlands, which may result from such use. Tn making this determination,
the Grantee may take into accounl economic, environmental, and other pertinent factors.
If the Grantee proposes to conduct, support, or allow an action to be located in a floodplain, the Grantee must
con!>idcr alternatives to avuid adverse effects and incompatible involvement in the floodplain. If sitting in a
noodplain is the only practical alternative, the Grantee must, prior to taking any action, (1) dc.~ign or modify its
action.~ in order to minimize any potential harm to the floodplain and (2) prepare and circulate a notice containing
an explanation of why the action is propused to be lucated in a floodplain,
:r---------------- ---
~
Appendix 0
Special Requirements and Assurances for Federally Funded Projects
The Grantee is required to follow all applicable State and Federal laws when carrying out their project. The following federal
requirements may assist in assuring compliance to this federally funded project.
1. HISTORIC PRESERVATION
a. The National Historic Preservation Act of 1996 (16 use 470)
Prior to undertaking any activity under this contract, the Grantee shall evaluate the effects of the activity on any
district, site. building stmcture, and object listed in, or eligible for, the National Register of Historic Places.
b. Executive Order 11593, Protection and Enhancement oftbe Cultural Environment, May 13, 1971
The Grantee shall assure that plans for federally funded projects contribute to the preservation and enhancement
of sites, structures, and objects of historical, architectural, or archaeological significance.
c. The Reservoir Salvage Act of 1960, As Amended by the Archaeological and Historic Preservation Act of
1974 (16 use 469a-l etseq.)
Under the Reservoir Salvage Act, the Grantee must comply with provisions for the preservation of historical and
archaeological data (including relics and specimens) that might otherwise be irreparably lost or destroyed as a
result of any alteration of the terrain caused as a result of any federal construction project or federally licensed
activity or program, Whenever any federal agency finds, or is notified in writing by an appropriate historical or
archaeological aUlhnrity, that its activities in connection with any federal construction project or federally
licensed project, activity, or program may cause irreparable loss or destruction of significant scientific,
prehistoric, historical, or archaeological data, the federal agency must notify the U.S. Secretary of the Interior in
writing and provide appropriate information concerning the project or program activity.
2. ENVIRONMENTAL
a. The National Environmental Policy Act of 1969 (42 use 4321 et seq., and ExeaJtive Order 11514)
The Grantee shall comply with the provisions of the National Environment Policy Act of 1969. The purpose of
this act is to attain the widest use of the environment without degradation, risk to health or safety, or other
undesirable and unintended consequences. Environmental review procedures. including determining and
publishing of Finding of Significance or of No Significance for a project, are a necessary part of this process.
Pursuant to these provisions, the Grantee must also submit environmental certifications to the Department when
requesting that funds be released for the project. The Grantee must certify that the proposed project will not
significantly impact the environment and that the Grantee has complied with environmental regulations and
fulfilled its obligations to give the public notice of the environmental findings.
b. Lead~Based Paint Poisoning Prevention Act (42 use 4801 et seq.)
The Grantee shall comply with the provisions of the Lead-Based Paint Poisoning Prevention Act. which prohibits
the use of lead-ba~cd paint in residential structures constructed or rehabilitated with federal assistance of any
kind.
c. Flood Disaster Protection Act of 1973, As Amended
The Grantee shall comply with the flood insurance purchase requirement of Section 102(a) of the Flood Disaster
Protection Act of 1973, Public Law 93-234. 87 Slat. 975, approved December 31, 1973. Section 102(a) requires,
on and after March 2, 1974, the purchase of flood insurance in communities where such insurance is available a.~
a condition for thc receipt of any federal financial assistance for construction or acquisition purposes for use in
any area that has bccn identified by the Federal Emergency Management Agency as an area having special flood
hazards. The phrasc "federal financial assistance" includcs any form of loan. grant, guaranty, insurance payment,
rebate, subsidy, disaster assistance loan or grant, or any form of direct or indirect federal assistancc.
d. Executive Order 11988, May 24, 1977 Floodplain Management (42 FR 26951 et seq.)
The Grantee shall comply with the provisions of Executive Order 11988. The intent of this Executive Order is to
(1) avoid, tu the extent possible. adverse impacts aswciated with the occupancy and modification of floodplains
and (2) avoid direct or indirect support of floodplain development wherever there is a practical altcrnative.
of r.~ rO
i~
Rev 2106
Alutiiq Pride Shellfi.l/l HaJdwry Operations: Appendix D
Page J of6
I. The Clean Air Act, As Amended (42 use 7401 et seq.)
The Grantee shall comply with the Clean Air Act, as amended, which prohibits (1) engaging in, (2) supporting in
any way or providing financial assistance for, (3) licensing or permitting, or (4) approving any activity which
does nol conform to the state implementation plan for natural primary and secondary ambient air quality
standards. d r-"1
i""
Rev V06 Aluliiq !'ride Shellfi~h 1/atdlf'ty Operati(J"~'_ Appendix D Page 2 af6
k. The Federal Water Pollution control Act of 1972, As Amended, includin~ the Clean Water Act of 1977
(Public Law 92.212 and 33 use 1251 ct seq.)
The Grantee must assure compliance with the Water Pollution Control Act, as amended, which provides tor the
restoration of chemical, physical, and biological integrity of the nation's water.
j. The Wild and Scenic Rivers Act of 1968, As Amended (16 use 1271 et seq.)
The Grantee shall comply with the Wild and Scenic Rivers Act of 1968, as amended. The pW"pOse of this Act is
to preserve selected rivers or sections of rivers in their free-flowing condition, to protect the water l:Juality of such
rivers, and to fulfill other vital national conservation goals. Federal assistance by loan, granl, license, or other
mechanism cannot be provided to water resources construction projects that would have a direct and adverse
effect on any river included, or designated for study or inclusion, in the National Wild and Scenic River System,
i. The Endangered Species Act of 1973, As Amended (PL 93-205)
The Grantee shall comply with the Endangered Species Act of 1973, as amended. The intent of this Act is to
ensure that all federally assislcd pmjecto;: seek to preserve endangered or threatened species. Federally authorized
and funded projects must not jeopardize the continued existence of endangered and threatened species or result in
the destruction or modification of habitat (If such species which is determined by the U.S. Deparbnent of the
Interior, after consultation with the state, to be critical.
h, The Safe Drinking Water Act of 1974, As Amended (PL 93-523)
The Grantee must comply with the Safe Drinking Water Act of 1974, as amended, which is intended to protect
underground sources of water. No commitment of federal financial assistance, according to the Act, shall be
entered into for any project which the u.S. Environmental Protection Agency determines may contaminate an
aquifer which is the sole or principal drinking water source for an area.
g. Coastal Banier Resources Act, As Amended (16 USC 3504 and 3505)
The Grantee shall comply with the Coasl:al Barrier Resources Act of 1982, as amended. The intent of this Act is
to minimize the loss of human life, wasteful expenditure of federal revenues, and the damage to fish, wildlife, and
other natural resources associated with coastal harriers by restricting future federal expenditures and financial
assistance which have the effect of encouraging development of coastal barriers. by establishing a Coastal
Barriers Resources System, and by considering the means and measures by which the long-term conservation of
these fish, wildlife, and other natural resources may be achieved, Questions pertaining to this Act should be
directed to the Secretary, U.S. Department of the Interior.
f. Coastal Zone Management Act of 1972, As Amended (16 use 1451 et seq.)
The Grantee shall comply with the Coastal Zone Management Act of 1972, as amended. The intent of this Act is
to preserve, protect, develop, and where possible, restore or enhance the resources of the nation's coastal zone.
Federal agencies cannot approve assistance for proposed projects that arc inconsistent with the Stale's Coastal
Zone Management program. except upon a finding by the U.S. Secretary (If Commerce that such a project is
consistent with the purpose of this chapler or necessary in the interests of national security.
e. Executive Order 11990, May 24,1977 Protection of Wetlands (42 FR 26951 et seq.)
The Grantee shall comply with Executive Order 11990. The inlt:nt of this Executive Order is to (1) avoid, to the
extent possible, adverse impacts associated with the destruction or modification of wetlands and (2) to avoid
direct or indirect support of new construction in wetlands wherever there is a practical alternative, The Grantee,
to the extent permitted by law, must avoid undertaking or providing assistance for new construction located in
wetlands unless (1) there is no practical alternative to such construction and (2) the proposed action includes all
practical measures to minimize harm to wetlands, which may result from such use, In making this determination,
the Grantee may lake into account economic. environmental, and other pertinent factors.
If the Grantee proposes to conduct, support. or allow an action to be located in a floodplain, the Grantee must
consider alternatives to avoid adverse etlects and incompatible involvement in the floodplain. If sitting in a
floodplain is the only practical alternative, the Grantee must, prior to taking any action, (1) design or modify its
actions in order to minimize any potential harm to the floodplain and (2) prepare and circulate a notice containing
an explanation of why the action is proposed to be located in a floodplain.
m, EPA List of Violatin~ Facilities
The Grantee shall ensure that the facilities under its ownership, lease, or supervision which shall he ulilized in the
accomplishment of the project are not listed all thc U.S. Environmcntal Protection Agency's (EPA) list of
Violating Facilities and that it will notify the Agency of the receipt of any communication from the Director of
the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for
listing by EP A.
3. CIVIL RIGHTS
8. Public Law 88.352, Title VI, Civil Rights Act of 1965 (42 USC 2000d et seq., and 15 CFR Part 8)
The Grantee must comply with the provisions of Public Law 88-352, which refers to Title VI of the Civil Rights
Act of 1965 (42 use 2000d et seq.). The law provides that no person in the United States shall, on the grounds
of race, color, or national origin, be denied the benefits of, be excluded from participation in, or be subjected to
discrimination under any program or activity receiving federal financial assistance.
b. Title VII of the Civil Rights Act of 1968 (42 use 3601 et seq.), As Amended
The Grantee must comply with provisions of Title VII of the Civil Rights Act of 1968, as amended. The law
prohibits any person from discriminating in the sale or rental of housing, the financing of housing, or the
provisions of brokerage services, including in any way making unavailable Or denying a dwelling to any person,
because of race, color, religion, sex, or national origin,
c. Age Discrimination Act of 1975, As Amended (42 use 6101-6107)
The Grantee must comply with the provisions of the Age Discrimination Act of 1975, as amended, which
provides that no person shan be excluded from participation. denied program benefits, Or subjected to
discrimination on the basis of age under any program or activity receiving federal assistance.
d_ Section 504 of the Rehabilitation Act of I 973, As Am~nded (29 use 794)
The Grantee must comply with the provisions of Section S04 of the Rehabilitation Act of 1973, as amended,
which provides that no otherwise qualified individual shall, solely by reason of his or her handicap, be excluded
from participation (including employment), denied program benefits. or subjected to discrimination under any
program or activity receiving federal assistance funds.
e. Title IX of the Education Amendments of 1972, As Amended (20 use 1681-1683 and 1685-1686)
The Grantee must comply with Utc provisions of Title IX of the Education Amendments of 1972, as amended,
which provides that no person in the United Stales shall, on the basis of sex. be excluded from participation in, be
denied the benefits of, or be subjected to discrimination under any education program Or activity receiving
Federal financial assistance.
f. Drug Abuse Office and Treatment Act of 1972, As Amended (PL 92-255) and Comprehensive Alcohol
Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970. As Amended (PL 91-616)
The Grantee must cumply with the provisions of Ute Drug Abuse Office and Treatment Act of 1972, as amended,
and the Comprehensive Alcohol Abuse and Alcoholism Prevention. Treatment and Rehabilitation Act of 1970, as
amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism.
g. Subsections 523 and 527 of the Public Health Service Act of 1912. As Amended (42 use 290 dd.3 and 290
ee-3, As Amended)
The Grantee must comply with the provisions of the Public Health Service Act of 1912, as amended, relating to
confidentiality of alcohol and drug abuse patient records.
h. Titles II and lJI of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
(PL 91-646 and 42 use 4630)
The Grantee must comply with Titles II and III of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 which provide for fair and equitable treatment of persons displaced or whosc
property is acquircd as a result of Federal or federaIJy~assisted programs. These requirements apply to all
interests in real property acquired for project purposes regardless of Federal participation in purchases.
A _ '"
...:...:',()
Rev21V6
A1uliiq Pride Shellfish Hlllchery Operation.f: App,>ndix D
Page 3 of6
Pag~4of6
Alwiiq Pride Shellfish Hmchuy Operations: Appendix D
Rev 21()(i
Contract WOl'k Hours and Safety Standards Act (40 USE 327-333)
The Grantee shall comply with the provisions of the Contract Work Hours and Safety Standards Act,
supplemented by U.S. Department of Labor regulations (29 CPR Part 5), According to this Act, no contract work
may involve or require laborers or mcchanics to work in excess of forty (40) hours in a work week, unless
compensation of not less than one and one-half (1-112) times the basic rate is paid for the overtime hour~. If the
Act is violated, the Grantee or subgrantee is liable to any affected employee for unpaid damage, as well as to the
United States for liquidated damages. Additionally, Section 107 is applicable to construction work and provides
that no laborer or mechanic shall be required to work in surroundings or under working conditions which are
unsanitary, hazardous or dangerous. These rCljuiremenl.<; do not apply to the purchase of supplies or materials or
articles ordinarily available on the open market.
.,~ 9
1.",'
c.
a. Davis-Bacon Act, As Amended (40 use 276a-a7) and u.s. Department of Labor Regnlations "Labor
Standards Provisions Applicable to Contracts Governing Federally .Financed and Assisted Construction
(29 CFR Part 5)
The Grantee, if applicable, must comply with requirements of the Act that all construction contracts awarded by
the Grantee of more than $2,000 include a provision for compliance with the Davis-Bacon Act, as amended, and
supplemented by Department of Labor regulations. Under this requirement, contractors and subcontractors shall
be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage
detenninalion made by the Secretary of Labor. In addition, contractors and subcontractors shall place a copy of
the currcnt prevailing wage determination issued by the V.S, Department of Labor in each solicitation and the
award of a contract or subcontract shall be conditioned upon the acceptance of the wage determination. The
Granlec must report all suspected or reported violations to the Department.
b. Copeland Ad (Anti-Kickback Act) (18 use 874 and 40 USC 276c)
The Grantee shall comply with the Copeland Act, which makes it a criminal offense for any person to induce by
any manner whatsoever, any other person employed in the construction, prosecution, completion, or repair of any
public building, or work financed in whole or in part by loans or grants from the United States, to give up any part
of the compensation to which he or she is entitled under his or her contract of employment. Compensation shall
consist of wages and approved fringe benefits.
4. LARORSTANDARDS
k. Americans with Disabilities Act of 1990 (42 use 12101 et seq.)
The Grantee comply with provisions of the Americans with Disabilities Act of 1990 prohibiting discrimination on
the basis of disability under programs, activities, and services provided or made available by state and local
governments or instrumentalities or agencies thereto, as well as public or private entities that provide public
transportation.
j. Executive Orders 11625, 12432. and 12138
The Grantee, if applicable, must comply with provisions thal a unit of general local government should administer
its activities funded with federal assistance in a manner to encourage use of minority and women's business
enterprises.
The Grantee and subcontractors must post in conspicuous places, available to employees and applicants for
employment, notices seuing forth the provisions of this nondiscrimination clause. For contracts over $10,000 the
Grantee and subcontractors will send to each applicable labor union a notice of the above requirements. The
Grantee and subconlractors, if any. will comply with relevant rules, regulations, and orders of the U.S. Secretary
of Labor. The Grantee and subcontractors will make their books and records available to state and federal
officials fOT purposes of investigation to ascertain compliance.
Such action shall include, but not be limited to, thc following: empluymenl; upgrading, demution or transfer;
recruitment or recruitment advertising; layoff or termination; rate of payor other forms of compensation; and
selection for training, including apprenticeship.
i. Executive Order 11246, POI.ts II and III, As Amended by Rxecutive Orders 11375, 11478, 12086. and 12107
The Grantee must comply with Executive Order I ]246, as amt:nded, and the regulations issued pursuant thereto
(41 CPR Chapter 60) which apply to all federally assisted construction contracts and subcontracts. The Grantee
and subcontracLors, if any, shall not discriminate against any employee or applicant for employment becausc of
race, color, religion, sex, or national origin. The Grantee and subcontractors, if any, shall take affirmative action
to ensure that applicants are employed, and that employees are treated during employment, without regard to their
race, color, religion, sex, or national origin.
r
'1-'
d. Drug-Free Workplace Act of 1988 (Public Law 100-690, Title V, Subtitle D and 15CFR26, Subpart F)
The Grantee must comply with the provisions of the Drug-Free Workplace Act of 1988, relaling to requirements
for a drug-free workplace.
5. FINANCIAl". ADMlNJSTRATIVE AND OnIER REQUlREMF:NTS
a. U.S. Office of Management and Undgct Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments
The Grantee shall comply. if applicable. with the requirements of OMB Circular A-87, which establishes
principles and standards tor delcrmining costs for federal awards through grants, cost reimbursement contracts,
and other agreements with state and local governments and federally-recognized Indian tribal governments
(governmental units).
b. U.s. Office of Managemenl and Budget Circular A-I22, Cost Principles for Non~Profit Organizations
The Grantee shall comply, if applicable, with the requirements of OMB Circular A-J22, which establishes
principles and standards for determining costs for federal awards through grants, contracts, and other agreements
with non-profit organizations_
c. U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments. and Non-
Profit Organizations
The Grantee shall comply with the requirements of OMB Circular A-B3, which requires that any Grantee
expending $500.000 or more in a year in federal funds have an audit made for that year, Grantees expending less
than $500,000 a year in federal funds shall be exempt from compliance with the circular and other federal audit
requiremenl:>.
d. Uniform Administrative Requirements for Grants and Agreements with InstJtutions of Higher Education,
Hospitals. Other Non-Profit, and Commercial Organizations (15 CFR Part 14)
The Grantee shall comply, if applicable. with regulations under this Part. whieh establish requirement.. for
awards, financial and program management, property Slandards. procurement standards, records and reporting.
and contract provisions.
e. Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local
Governments (including federally-recognized Indian Tribal Governments) (15 CFR Part 24)
The Grantee shall comply, if applicable. with regulations under this Part, which establish requirements for
awards. financial and program management. property standards, procurement standards, records, reporting,
enforcement and close-out provisions.
f. Rights to Inventions Made by Non-Profit Organizations and Small Business Firms Under Government
Grants. Contracts, and Cooperative Agreements. (37 CFR Part 401)
These regulations are applicable to all grants and cooperative agreements where the purpose of the award is to
accomplish experimental, developmental, or research work,
g. Debarment and Suspension (Executive Orders 12549 and 12689) and Governmentwide Debarment and
Suspension (Nonprocurement) (1S CFR Part 26, Subparts A-E)
The Grantee must comply with Debannent and Suspension regulations relating to the exclusion of parties or
persons who are dcbarred or suspended by a program or agency from participating in or benefiting from Federal
financial assistance and nonfinancial assistance and bcnefits undcr any federal programs and activities, This
requirement applies to all primary and lower tier covered transactions. including subawards, contracts, and
subcontracts.
h. Byrd Anti-Lobbying Amendment (Public Law 101-121,31 use 1352 and 15 cm Part 28)
The Grantee must comply "New Restrictions on Lobbying" which prohibits the use of Federal funds for lobbying
activities and imposes requiremcnts for disclosing and reporting the use of non-federal funds for lobbying in all
covered transactions. including subawards, contracts, and subcontracts.
i. American-Made Equipment or ProducL..
The Grantee is encouraged, to the greatc.st extent practicable, to purcl1ase American-made equipment and
products with funding provided under this Agreement.
Rev2J06
iSD
Alutiiq Pride Sh,,-/!fish Hatchery OPerations: Appendix D
Page 5 ()f6
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Alwiiq Pride She//fiJ"h Hatchery Opera/ions: Appendix D
Rev2106
~ G' <
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.JI.- -:i..
};
n. Hatch Act (5 use 1501~1508. and 7324-7328)
The Grantee must comply, if applicable, with provisions of the Hatch Act, which Iimil the political activities of
employees whose principal employment activities are funded in whole or in part with Federal funds.
Ill. Laboratory Animal Welfare Act of 1966, As Amended (PL 89-544, 7 use 2131 etseq.)
The Grantee must comply, if applicable, with the Laboratory Animal Welfare Act of 1966, as amended,
pertaining to the care. handling, and treatment of warm-blooded animals held for research, teaching, or other
activities supported by this Agreement.
I. Protection of Human Rcsearch Subjects (Public Law 93-348 and 42 use 289 a-I)
The Grantee must comply, if applicable, with requirements regarding lhe protection of human subjects involved
in research, development, and related aclivities supported by this Agreement.
k. Fly America Act (49 use 40118)
The Grantee must comply with the provisions of the Fly America Act, which requires the use of U.s. flag air
carriers.
j. Patent Notification Procedures (Executive Order 12889)
The Grantee must notify the Department if patented technology has or will be used under this Agreement, without
license or permission from the owner.
,
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Appendix E
Site Control
1. Site Control
The Grantee must provide evidence of site control for a project that involves any use of land, including but nol limited to,
construction, renovation, utility projects, fuel storage, roads and trails.
As a minimum requirement, the Grantee should obtain a "sufficient interest" that allows the Grantee the right to use and
occupy thc site for the expected useful life of the building, structure or other improvement. GencralIy, the interest
obtained should be for at least 20 years. A sufficient interest depends Upon the nature of the project and the land status of
the site. Site control options are identificd in Section 2.
For a project planned on land that is controlled by a public agency, the Grantee must obtain whatever authorization for use
that is required by the public agency.
2. Site Control Options
Below are some examples of documents that may be used to satisfy site control requirements for various community
facilities/projects. The terms and conditions contained in each document must be examined to determine adequacy for a
specific project.
Community Hall
Clinic
Fire Station
Bulk Fuel Storage
D~
Shop/Storage Building
Cemetery
Dock
Campground
Generator Building
Multi-purpose building
Laundromat
Water welVSeptic
Village Relocation
Agriculture Project
Sewage Lagoon
Communication Site
Road (.25')
Trail (,25")
Boardwalk
Powerlinc
Water/Sewer Line
Pipeline
Deed
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
Lease
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
Easement
Use Permit
License
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
'"
. G.0
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R~2I06
A/utii,! Pride Sllellfi,{h Hatdu.'ry Operations: Appendix F.
Pagelofl
Page I ofl
Al"tiiq Pride Shellfish Hatchery Oper"liuru: Appendix F
Re)l2106
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Authority: AS 18.70.080
Alaska Administrative Code: 13 AAC 50.027
A copy of the plan review approval certificate must be posted as required in 13 AAC 55.100(b). It is prohibited to occupy
a building for which plans have not been examined and approved.
If any work for which a plan review and approval is required has been started without first obtaining plan review and
approval, an additional special processing plan review fee of $100 is charged for the first violation. The special processing
plan review fee for a subsequent violation by the same person is an additional charge equal to the amount of the
standard plan review fee for the project.
Residential housing lhat is three-plex or smaller is excmpt from this requirement.
Exception: The following jurisdictions have accepted a deferral for total code enforcement and plans should be submiued
directly to the city: Anchorage, Juneau, Fairbanks, Kenai, Seward, Kodiak, Sitka, and Soldotna
Plans and specifications regarding the location of the building or structure on the property, area, height, number of stories,
occupancy, type of construction, interior finish, exit facilities, electrical systems, mechanical systems, fuel storage tanks
and their appurtenances, automatic fire~extinguishing systems, and firc alarm systems must be submitted by the owner or
owner's representative to the State Fire Marshal for examination and approval. This review does not address structural
considerations or accessibility requirements. Mechanical and electrical review is limited to that which is necessary to
confirm compliance with fire and life safety requirements.
Construction, repair, remodel, addition, or change of occupancy of any building/structure, or installation or change of fuel
tanks must be approved by the State Fire Marshal's Oftice before ANY work is started.
I. The Plan Review Process
Appendix F
State Fire Marshal Review
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Appendix G
Debarment and I~obbying Certification
CERTIFICATIONS REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY
AND VOLUNTARY EXCLUSION-LOWER TIER COVERED TRANSACTIONS
AND LOBBYING
Applicants should refer to the regulations cited below to determine the certification to which they are required to attest. Applicants
should also review the instructions for certification included in the regulations before completing this form. Signature on this form
provides for compliance with certification requirements under 15 CPR Part 26, "Government-wide Debarment and Suspension
(Nonprocurement)" and 15 CPR Part 28, "New Restrictions on Lobbying."
1. DEBARMENT, SUSPENSION,INELIGIBH.ITY AND VOLUNTARY
EXCLUSION-LOWElt 1ttJt. COVERED TRANSACI'IONS
As reqllired by executive Order 12549, Debarment and Suspension, aud
implemented at 15 CPR Part 26. Section 26510, Participanlll responsibilities.
for prospective participants in lower tier covered transactions (except
SUbcontracts for goods ot servico:s lll1der the $25,000 smaJl purchase threshold
IInless the subtier recipient will have a critical influence on or SUbstantive
control over the award), as defined at 15 CF Part 26. Sections 26,105 and
26.110--
(1) The prospective lower tier participant cerrifies, by submission of this
proposal, that neither it nOl" its principals is pleSCntly debarred, swpended.
proposed for debanneut, declMed inclipble, or voluolarily excluded from
participation in this transactioo by any Federal departmenl or ageucy.
(2) Whete theproapcctivelowel-li<<partidpant is unablc to certify to any of the
statements in this certification, sucb prospective participanl shaJl attach an
eAplanationmthisprq705al.
2. LOBBYING
As required by Section 1352, Title: 31 of the U.S. Code, 3nd implemented al15
CFR Part 28, for PeJ'SODS mtering into II paul, cooperative 1Igt'eemeIl1 Ol"
conlractover $100,000 01" II IoIln or bin guanntee over $J50.000u defined at
15 em Pan 28, Sections 28.1OS and 28.110, the applicant cutifies that to the
best of his 01" bee knowledge and beJief, that:
(I) No Federnl appropriated fuJlds bave been paid 01" will be paid, by or on
bebalf of the uodersigned, to any person fOC' iDfIuencing OC' attempting to
influence an officer 01" employee of any llgeDCY, a Member of Congmu ia
connection with Ibc awarding of any Federal CODIracr. the making of any
Federal grant, the making of any Fedtnl IoIln, the eutering iam of any
cooperative agreement, aod !be exteasiom, contionalion, n:IIewal, amendmenr.
or modification of any Federal conbact. granl, loon, 01" cooperative IIgreemenL
(2) If auy fu.nds Olhel' lhuI Federal IIppmpriakd timds have been paid or will be
paid to any penon for influencing or allempring to influence an officer or
employee of any agency, II Member of Congress, an officer or employee of
Congress, or all employee of a member of Congress in connection with this
Federal contract, sranr. JoaD, or cooperative agreellleDr. the undersigned shall
complete and submir SIaDdard Fcnn-LLL, "Disclosure Form to Report
Lobbying:' in accordance with its instructions.
(3) The undenigned sI1all reqllire that the language of this certificarion be
included in the award documents: for aD subawants at aU tiers (including
sllbcontracrs, subgrauts, and confracts under grants, loans, and cooperative
agreements) and thaI all subrecipients shalf certify and disclose accordingly.
This certification is a material rqtresentarioQ of fact upon which n:Hance was
placed ~ this b1wac:rklft was made or entered into. SubmissiOll of this
certification is II pcerequisite for mating 01" mteriDg into this lnosactiou imposed
by section 1352, title- 31, U.s, Code. Any perSOQ who fails to file the required
CertificabOll; shall be subject to II civil penalty 01 not less than $10,000 IIIId not
fflorctban$IOO,OOOforeadlsuchfailon:.
Statement fm' Loan. GlIU1lnkQ and Lolm IDsuranee
The Undersigned stares, t:o lbe best ofms or her knowledge and belief, that:
In any funds have been paid Ol" will be p;Qd to auy person for iatluencing or
attempting to ioflue:nce an officer or employee of any agency, a Member of
Congns.s, lID officer or employee of CDIlgress, (II" lID empJoyee of a Member of
Congress ia COIIIlecIiOll with thi$ C4m1DIitmmt providing for the United Slates to
ill$on: or guarantee a loan, the undersigned shall complete and submit StandanI
Form- LLL. "Disclo&un:: I"crm to Repan: Lobbyiag," in acconlance with its
Ill$lrIIclims,
SUbmissiOQ of Ihis slalement is II preteqihsik: fill' making or entering into this
transactiOll i1llpOlled by uctim 1352, title 31, U.S. Code. Auy peI'SOn who fails
to file me required stat:enlmt shaU be suf!je.::l to II civil penaJry of nor less IbIlD
$10,000 and OOl IlIOrC than $100.000 foreach such failon:.
As the duly authorized representative of the Grantee, I hereby certify that the Grantee will comply with the above
applicable certification(s).
Grantee Name
City of Seward
Printed Name of Authorized Representative
Clark Corbridge
Signature of Authorized Representative
Project Description: Grant Agreement Number
Alutiiq Pride Shellfish Hatchery Operations:
Title
City Manager
Dale
f.j'?"1l April 6, 2006
" roil
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Rev 2/06 IIlaska Mariculture Rest'arcll Ce1Jt~r: Appendix G
Page 10[1
Alaska Marjcullure RC$eurch Center: Appendix H
Rev2J06
The following Grantee EmployeesIRepresentatives are authorized to sign the Grant Agreement,. and subsequent
amendments to the Grant Agreement, if any:
Clark Corbridge Kirsten Vesel
Printed Name Printed Name
City Manager Assistant City Manager
Title ~~~
[Jf{J Gj~ 4 -(, -oJ,
Signature
The following Grantee EmployeeslRepresentatives are authorized to sign rmant:faI reports a.d requests for
reimbursements, which are required to be submitted monthly or quarterly, dUring the life of this grant:
Kristin M. Erchinger Kirsten K. Vesel
Printed Name Printed Name
Finance Director Assistant City Mana2er
Title Title
.~Tw~ ~~J!w
Signature
This signatory authority is conveyed by Clark Corbridge , CEOlRepresentative of
_t::J1e City of Seward ,this 6th day of _April ,200~,
Grantee _utt~
Signature "- CEOlRepresentative
,
Clark Corbridge, City Manager
Printed Name!Title
Note.. Any changes to the signatory authorities above must be submitted to the Department using this form.
of (~1""
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Granlcc Grant Agreement Number
City of Seward
Project Title Fiscal Year
Alutiiq Pride Shellfish Hatchery Operations 2006
Appendix H
State of Alaska
Department of Commerce, Community and Economic Development
Office of Economic Development
,
,
City of Seward. Alaska
A rillO, 2U06
City Council Minutes
Volume 37, Po e
Call to order
The April 10, 2006, regular meeting of the Seward CilyCouncil was called to order at 7:30
p.m. by Mayor Vanta Shafer.
Opening ceremony
Sergeant Valadez led the pledge of allegiance to the flag,
Rollcall
There Were present:
Vanta Shafer presiding and
Willard Dunham
Bob Valdatta
Jean Bardarson
comprising a quorum of the Council;
Clark Corbridge, City
Jean Lewis, City Clerk
Ma'
ertific es of award Were given to the 2005-2006 Seward High
s for their first place finish at State.
rt. City Manager Clark Corbridge gave an update and timeline on
the harhor project, ined the city of Sitka was having similar problems with the Corps of
Engineers harbor wave SUe. The cost ofrcpair in Seward would be around $3 million dollars. SB
728 included money for Sitka's repairs, and Seward needed to attach its repairs to that bill. He spoke
of conversations with federal lobbyist Brad Gilman on issues with funding requests for the Seward
Marine Center dock and the "ferry dock" appropriation language, and D.O. T. Gilman thought a
decision would have to be made, either for the Seward Mariue Center dock, or fixing the wave issue
in the harbor, so strategies were being discussed. Other topics were:
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Dianne Dubuc, spoke in opposition to the parking fees increasing. She felt the increase was
too stiff and would hit the slipholders and the people working in the harbor during the summers the
hardest.
Bill Hearn, sai(f'a group of citizens had legal counsel that stated the city of Seward should
allow a vote on the vacation of Washington Street. He thought it would be the right thing to do and
wanted elected officials to listen to their constituents, He urged the council not to wait on the court
decision, and to let the citizens vote.
}> Polar Seafoods. Corbridge gave an update on pending issues with the Polar Seafoods
lease,
}> Salvation Annv land ourchase. The city had received a counter offer from the
Salvation Anny property purchase to accept the land as is, which includes any
environmental testing and removal ofthe fuel tanks.
}> Soring Creek Water Tame Actual repairs came in lower than expected.
Reimbursement checks from the insurance company were due in this week bringing
in a total of$383,000. The net cost to the city was $1~0.
);> Long-Term Care Facilitv. Negotiations were takin.
Corbridge would bring a request to council, in th
t it w~ interesting that public comment during the last special
.t groups, but know one thought of themselves as a special interest
,e resolution that would be amending parking fees, She felt all fees
'C1e, and fees shouldn't increase without justification.
meeting sp
group. She w,
should go before
:xcept those items scheduled for public hearing.
'ark Service on the (multi-agency) Mary
ings that were in the works. He
J test sites could be drilled at
derground tanks there. He
Corbridge spoke of other time c,
answered questions from the city counci
the Salvation Army propcrhl r.)fbridge
would ask public work
). Alaska Sealife Center. Negotiations wouliJ..t.
agreement proposal, and a work session,
the relationship between the city, S
);> Jesse Lee Home. A plan would
study and dollar amounts establis,
)0> Electric Generators, Looking at aIte:
assets,
City Council Minutes
Volume 37~aE..e
City ()fSeward. Alaska
Ar.ril J O. 2006
City rifSeward, Alas/w
April 10. 2006
City Council Minutes
Volume 37, Page
Motion passed
Yes:
Lorenz, Valdatta, Dunham,
Bardarson, Mayor Shafer
Thomas, Schafer
No:
New Business
Resolutions
Resolution 2006-039. submitting a proposition to the vote
municipal election which shall amend the Seward City C
6.3 to require a biennial budget cycle.
e October 3, 2006 regular
. n 5.4 (d), Section 6.2 and
Corbridge stated this topic had been discus
understanding that the city council was generally'
was the first formal step in meeting that converSl
t. and it was his
et cycle. This
er.
Motion (ThomaslLorenz)
Lorenz noted this had been done
time savings, and that planning ability ha
roved the process with cost and
Schafer wanted to
year. Seward had too
especially with the '
stre thought it safer to stick with one
was too small. Dunham had reservations also,
g.
pt a biennial budget. It was more effective
focus on other projects in the off year.
and pointed out this would just put it on the ballot for the
to look at it further.
Yes: Thomas, Bardarson, Lorenz,
Valdatta, ~ayor Shafer
No: Schafer, Dunham
Other New Business
It was discussed and unanimous consent given, to have the cost of a legal review of the city
code added as a request for the 2007 budget cycle.
Motion (DunhamfBardarson
To!!.!!! move forward with Resolution 2006-
36 which amended the city parking fees
schedule for city-owned parking lots.
"i;{l
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170
Dunham emphasized there was no specific ethics board review on this question. It was an
opinion of an ethics board attorney.
Lorenz did not see it as questioning anyone's integrity and felt if the ethics board stated there
was a conflict, she was pretty sure a conflict existed. She acknowledged the fact there was no
adversarial relationship now. but you never knew what would happen down the road. This threw up
"red 11ags" for her.
'not want to look like the city had an adversarial relationship with the
Thomas
Alaska Sealife Cen'
the city manager had challenged the attorney for the ASLC as
an urgent need to add this to the agenda. Mayor Shafer also
ive talks with the city's attorney and was advised that the
ct eXl with the ASLC attorney. She feared the Sealife Center
,rk session tomorrow.
havi.
noti
ethics
would no
e A1IFka Sealife Center (ASLC)
:or~ttend the joint work session on
Aprilli~06 due to the urgent need of a
joint scheduled work session tomorrow
:vening between the City and the Alaska
olife Center (ASLC).
Motion (Thomas/Schafer)
Motion Failed
Thomas stated anyone could speak to the ci
people wanted to vote, there were simple solution
or move within the city limits,
sections of people living
ld choose to if they wished.
.0 positions and wished
Lorenz had heard at AML that some cities had advisory seat
outside their area. She understood people did not have to vote, b;
They could participate in the discussion. Lorenz propos
feedback.
Have administration research further, and
create two advisory seats for the city
council.
Motion (DunhamILorenz)
Motion Passed Unanimous
(Negative motion made. Council decided they had no interest to amend the Parking fecs at this time.)
City of Seward. Alaska
Aei( 10, 2006
City Council Minutes
Volume 37, Pa~e
City o.fSeward. Alaska
April 10, 2006
City Council Minutes
Volume 37, Page
Informationalltcms and Reports
Hospital Financials for March 2006
Council comments
Schafer requested the city help the Post Office with their flagpole problem.
Lorenz noticed Homer made a city-wide event of the ret
perhaps the city could do this for the return of the gray whale
gravel was a commodity, but transportation to Homer was
Yaly's menu brought in because it sounded so good,
e shorebirds. She thought
nz also found out Seward's
renz wanted samples of
Thomas wanted to see the shiplift mainte
Seafoods lease at the next meeting. He did not .
anything to do with the environmental issues, Tfl
discharge gray water and sewage when they wante
issue. He also wanted to see RFP's do ore often,
tations on stearn and coal fired
terns, He stated Pacific Rim
modular housing plant here,
osswaIk on a state highway from D. 0. T. hut
e highway in Homer. He thought painted
e harbor. He agreed with council member
comp!el and the shiplift M&O agreement. He urged the
byist on seeking funding for the shiplill. Donham noted tbe
e, and they were tasked with getting a resolution passed to the
g of subdivisions and roads. This would assist with road
ith Thomas on moving leases along swifter, and RFP's being used
Citizens' comments
DJ Whitman, stated in December the city council requested the M&O agreement be put
forward. They still did not have one. He asked Harbonnaster Ransom and the City Manager what
the environmental concerns were?
Jim Pruitt, got good ratings from the Coast Guard on their repairs but they said they needed
to be able to tie a boat up. A 2003 letter from Brad Gilman stated to pursue monies for SMIC with a
feasibility study from the Corps of Engineers, an application needed to be submitted to EDA. It was
171
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Council Member Dunham will be asking for your support to fund these street banners for the
upcoming tourist season from money available in the city council promotions account.
Your promotions account begins the year with $7,000 in it. This account usually pays for such
things as; ship inaugural plaques, city pins. postcards, Juneau Mayor's banquet, APOC breakfast,
Borough Assembly dinner for their annual visit, Christmas cards, travel to Korea, etc. The
estimated cost of this purchase would be as low as $450 to as high as around $1,000, with the
latter being most accurate.
Dennis Treadwell from Starbird Studios has ordered these street banners in the past, It would
take about 64 flags at a cost of $7 to $10 per banner flag. Treadwell believes they ordered 100
the last time and if taken care of, thcse banners can last up to 4 years between purchases.
Since those same business owners are putting on an event the end of May, Council Member
Dunham thought it would be nice if the city pitched in and purchased the banners for this year,
This discussion topic was put on the agenda by Council Member Willard Dunham. He had
found out that the business owners that usually contributed to aligning the banners that hang from
the poles above the sidewalks from the Railroad dock, through the boat harbor. up 4th Avenue, to
downtown, did not have the funds to buy them this year. Bear paws were also painted on the
street.
Mayor Shafer, City c~n~1 .
Jean Lewis, City Cle k Ov
Wiliard Dunham, Co . ember
Assisting with payment of street banners for 4~ Avenue from the Railroad
dock to Downtown.
Subj:
From:
Through
To:
April 24, 2006
Date:
Memorandum
:SJreet Banners-Stock
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NOTE: ARTWORK SHOWN REPRESENTS 30~ x 60" BANNERS
AND MAY NOT REFLECT ADDiTIONAl DESICN ELEMENTS
INCLUDED IN SOME 30" x 84" BANNERS. VISIT
WWW.CARROT-TOP_COM TO 5H FUll DETAil OF
LARGER BANNERS.
StnidBmmers Generate IUlereSt &: Dress Up Your Town or Business
OuitXdT15ive vmyl ~nd marine aDylic street banners f!"_atun: :;olid, double~sided construction
lIridvibram colors FiItJ.Shed with rolled bras:; grommels and sewn poll' sleeves_
J3amlers are priced in classes, according to the lype of material and number of colors used_
Match thrprice class noted abovi' each banner to the price charrsbelow.
USA
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MARrN~ ACIn'UC
30" x 60": AF142C6(l
30"x84",AFI42C84
VINYl
30"J< 60": AFl40C60
30"x 84": AFI40CS4
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30"K60""'AF1SSC60
30Nx 84n: AF1S:'ic84
30" x 60" STREET BANNERS
I'HOTO {ACH " ",6+ ..,
A $99.00 $90:00 $83:00 $78__00
B 112m 10;>00 94.00 88.00
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C 78_00 7100 66_00 61:00
30" 'K 84" STREET BANNERS
I'HOTO EACH ,. 0, ",
A $1]4.00 $105.00 $96_00 $89_00
B 129.00 118.00 110_00 102.00
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C 89.00 82_00 76.00 7000
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www~-carYoiAop'.ct.im
or wll1.800.628.3524
to tequesl y{)urI-ree
banner .brochure
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www.CarrOT-TOP.COm ~
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NOH: SCREEN CHARGES DO NOT REPRESENT A SAL~, AND ALL ARTWORK
REMAINS THE Pl1.0PERTY or OUR fACTORI[$.
NOTE: QUANTITY VARIATIONS ON ORDERS UNDER 25 PIECES ARE;/; 3 PIECES;
OYER 25 PIECES :tlO%.
.IS,%>SlJRCHARGEFOR,30~- WlrJE 8ANNERSIN
FABRIC<:9l0RS:MARKEo'WITH AN:ASTERISK.
SIZE, /ilOfCOLORS' SETUPCHARG. lHM# ,. .. ".
23"x60"; I $140:00 AFIQ3-] $136.00 $94.00 $85_00
2 200,00 Af103-2 164.00 118.00 99.50
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3(y',,60"' I 140.00 Af104-] 142_00 10'200 85,00
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2 200_00 AF1042 170,00 124.00 99.50
JOHx84'" I 18500 AFl05-j 1&1.00 11'1.00 92.00
2 287.00 Af105.2 190.00 142.00 11800
Add Impact with
OUf Cust6mMarine
Acrylic Banners
'-Thet:raditionaI look of a marine
acrylic banner is a perfect choiCe [or
simple designs and low order quan-
tities. Constructed of tough, canvas-
like material and finished with pole
',-'di;leeves and bra<;.~ gromm:rs for
, . :,j;.;,I).f:ir,%;~aI)._I).H~,'F;,a,2:,:S8,{'~~:fY,Y;
Digitally produced vinyl banners now available.
, """",t:fq,m~mnwm-:~rqgr,tr~~j~~lf!l:ti:tt-',,;'
Call1.800c628.3324 for more in:fo.:
SIZE #OFCOLOII.S S~UPCHAII.G~ ITEM II W. ". ,,.
17"x36" I $308:00 AFOaO-1 $4A_CiO $4f.oiJ $38.00
2 4A3_00 AFOBO.2, 51_00 47.00 .' ,,",OIl
23"x4B" I 27ei.OO AF08H 56.00 52_00 4-8_50
2 399_00 AF081-2 59J)() 54.00 51.00
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30"",60" I 2B7_00 AFOS2'-1 62.00 5700 53_00
.
2 421.00 AF082-2 65.00 60.00 56~00
30",,84" I 305_00 AF083-1 61.00 62.00 58.00
2 536_00 AFOB3.2 69_00 6400 6000
Money-Saving Custom Vinyl Banners
<II Constructed of durable IS-oz_ vinyl, these hanners arp_ finished
with brass grommets and two pole sleeves for hangmg R;:mners read
correctly on both sides. Minimum order quantity of ten banners.
Allow 3-4 wr:ehs for delivery_
Street Banners-Custom
1.800.628.3524
$1/5_00 $162_00 $152.00
'r BANNERMASTER DOUBLE
30" :36 Al-42~ $1 ~8.00
$7400 $70,(10 $6650
79.00 75.00 71.00
83.00 78.00 13.;;0
~\ I I 6_00 $108_00 $101_00
DOUBLE
Af416 $7.'1.00
AF417 8~.00
AF418 88.00
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23' 10 AF411 55.00 :)1.00 49_00 4650
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Jif 12 AJ'412 56_00 53.00 51.00 413.00
II>- BannerGllard~brackets feature removable
fiberglass aims thai make installation and
lemoval a snap. They uresecured. with three
stainless 5t~e)"ba.!1qstp~~~pY,?,']t9~-ri~~,r,'" <
in' pk.(;e.aIldJe,(l.'u(;~;\^,(,:ar;::;\'!l--~gjj)F:tYl~:tc;g,::.{: '.'
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windloads7
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included. Single:bl'~ck~'~::~~,@~fl;"
onc banner,topandb6tfOnl;'\;i~i1e:"clqij~1"
are used for side-by-side bannerlristai1a\io~:"i
Protect Your Banners
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April 2006
Monthly Planner
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Meeting
7:30~MP&Z
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6:00 PM Historic
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Monthly Planner
May 2006