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HomeMy WebLinkAbout01232006 City Council Packet '" ~ ~ Seward City Council Agenda Packet . ,. January 23, 2006 , City Council Chambers Beginning at 7:30 p.m. , ," . The City of Seward, Alaska January 23, 2006 Vanta Shafer Mayor Term Expires 2007 Willard E. Dunham Vice Mayor Term Expires 2006 Robert Valdatta Council Member Term Expires 2007 Robert Thomas Council Member Term Expires 2007 Steve Schafer Council Member Term Expires 2007 Dorene M. Lorenz Council Member Term Expires 2006 Jean Bardarson Council Member Term Expires 2006 Clark Corbridge City Manager Jean Lewis City Clerk 6. Brad Meyen Cheryl Brooking City Attorney .. City Council Meeting 7:30 p.m. Council Chambers 1. Call to order 2. Pledge of allegiance A. Swear in new council member 3. Roll call 4. Special orders, presentations and reports A. B. C. D. E. Proclamations and Awards Borough Assembly Report City Manager's Report Chamber of Commerce Report Other Reports, Announcement:; and Presentations 1. SewaFd's aee~tanee eftAe ~JatieBal Fleee mSl:lfa1l.ee PregFaIB CeRllHWlit)' fEltiag aystem Hem FeMA:- Set for February 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.) Approval of agenda and consent agenda (Approval of 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 retu17led to the Regular Agenda) City of Seward, Alaska January 23,2006 Council Agenda Page 1 " 7. Public Hearings A. Ordinances for Public Hearing and Enactment 1. Ordinance 2005-06. amending Seward City Code 2.05.030, maintaining confidentiality of information related to competitive bidders and proposers. ........ .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . ..Pg. 4 B. Resolutions requiring a public hearing I. Resolution 2006-008, consenting to the termination of lease with Dot and Linne Bardarson and entering into a new lease with Juris Mindenbergs, of Lot 5B, Block I, Small Boat HarborSubdivision. ...................................................................................... ...Pg. 8 2. Resolution 2006-009, Reeommeaaiag City Ceooeil ana Keaai Peaiasala ROFeagB. a1313ro'/aJ efthe City eV/Bea Fearth ef hlly Creek Saeaiv:isien, Se':/afa Mariae IBlhlBtriaJ Ceater, PelM Seafaaas Replat, a RlJIlat ef Lets 1 ana 2 Rleek 9 8:ftEI. TFaet .A., Fel:H1h ef Jal)' CFeek SaI3ei'lisian, Seware Marine IBEt1:lstriaJ Center anEt reeeBmleaeing Celilleil aflflFevaJ ef the 13r~esealease amefl.emeet FeEfaestea hy PalM SeafeeEls. Pulledfrom the agenda. , 8. Unfinished business - None 9. New business A. Ordinances for Introduction 1. Ordinance 2006-001. amending Seward city code 12.01.010. Use of timber piling, post or piers prohibited. ................................................................. .Pg. 4S B. Resolution 1. Resolution 2006-006, authorizing a contract with Puffin Electric to install security cameras in the Seward Harbor area utilizing Homeland Security grant funds, and appropriating funds not to exceed $119,439.00. .......................... ......... .Pg. 48 2. Resolution 2006-010, authorizing the City Manager to enter into a contract with Chugach Electric Association Inc. to extend our current agreement for sale and purchase of electric power while a new agreement is being negotiated. ................................ .Pg. 5S 3. Resolution 2006-0 II. authorizing establishing the Seward Community Library/Museum Agency Fund for the pwpose of accounting for donations to the project. ........... .Pg. 63 : 4. Resolution 2006-012. approving the city of Seward's calendar year 2006 revised Federal legislative priorities. ....................................................................... .Pg. 67 City of Seward, Alaska January 23, 2006 Council Agenda Page 2 " 5. Resohltfon 2006-013. approving the City of Seward's calendar ye~11" 2006 revised State Legislative priorities. .... ...... ...................... ..................... ".:. ............ .Pg. 81 6. Resolution 2006-014. approving the City of Seward's calendar year 2006 revised city priorities. ..... ............................:.... ............... ........................ ...... ............ .Pg. 96 C. Other New Business Items I. Discuss and decide who will attend the Pacific Rim Convmtion in Anchorage February 22 and 23. 2. Discuss and decide who will travel to Juneau during the legisla1ive session the end of February. 3. Discussion on researching an alcohol and tobacco tax (Valdatta). ..... .......Pg.I00 10. Informational items and reports (No action required) A. City of Seward accounts receivable write-offs. 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. Adjournment "I City of Seward, Alaska JanualY 23. 2006 Council Agenda Page 3 Sponsored by: Corbridge Introduction: December 12, 2005 Postponed: January 9, 2006 Public Hearing: January 23, 2006 Enactment: January 23, 2006 CITY OF SEWARD, ALASKA ORDINANCE 2005-06 AN ORDINANCE AMENDING SEWARD CITY CODE SECTION 2.05.030, MAINTAINING CONFIDENTIALITY OF INFORMATION RELATED TO COMPETITIVE BIDDERS AND PROPOSERS WHEREAS, the City of Seward recognizes the important public right of access to information concerning the conduct of the people's business; and WHEREAS, the City also recognizes that certain records must remain confidential to protect rights of other persons or to protect public resources; and WHEREAS, certain information may be confidential only for a period, and such information should be made publicly available when the circumstances creating the need for confidentiality no longer exist; and WHEREAS, information relating to bidders and proposers may adversely impact the use of public funds if made public prior to notice of an intent to award. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Section 2.05.030 is hereby amended as follows: Strikeeut = delete Bold = new 2.05.030 Exemptions for particular records. A. This chapter shall not be construed to require disclosure of the following records or information which, by law, are required to be confidential: 1. records of vital statistics and adoption proceedings; 2. records pertaining to juveniles; : 3. health, mental health, medical, juvenile and personality problem information obtained or prepared by the city with respect to any person for whom treatment or services were provided; 4. records required to be kept confidential by a federal law or regulation or by state law; 4 . " ~ 5. records required to be kept confidential under 20 U.S.C. 1232g and the regulations adopted thereunder in order to secure or retain federal assistance. B. This chapter shall not be construed to require disclosure of the following business and proprietary records or information: 1. trade secrets, patented and/or copyrighted material; 2. records held by the city or any public utility pertaining to any client, customer, tenant, operator, user or subscriber, the release of which would constitute an unwarranted invasion of privacy of that person or entity; 3. records of engineering, marketing, accounting or other technical or financial data, which, if released, would provide a competitive advantage to any other :persons or business engaged in similar or related activities; 4. proprietary information which a manufacturer, consultant or provider reasonably expects to be kept privileged or confidential to protect the property interests of persons providing the information or data; and 5. personal information other than name and address given to the city with the legitimate expectation of privacy in conjunction with licenses, permits or other municipal services. 6. any information (including number of persons or identifying information) regarding persons who submit bids or proposals to the city, in respoDile to a competitive procurement process under Title 6 of this code, provided that such hliformation may be available for public inspection after a notice of intent to award has been iissued by the city. C. This chapter shall not be construed to require disclosure of the following law enforcement records or information: 1. records or information compiled for law enforcement purposes, hilt only to the extent that the products of the law enforcement records or information a. could reasonably be expected to interfere with enforcement proc:eedings; b. would deprive a person of a right to a fair trial or an impartial adjudication; c. could reasonably be expected to constitute an unwarranted invBsion of the personal privacy of a suspect, defendant, victim, or witness; d. could reasonably be expected to disclose the identity of a confidential source; e. would disclose confidential techniques and procedures for law enforcement investigations or prosecutions; f. would disclose guidelines for law enforcement investigations OJ prosecutions if the disclosure could be expected to risk circumvention of the law; or g. could reasonably be expected to endanger the life or physical safety of an individual; 2. name, address, telephone number or other identifying information about complainants in actions to enforce building, zoning, environmental or other municipal ordinances or regulations. This subsection does not protect from disclosure the contents (If the complaint, so long as the complainant is not identifiable; or, the name of the complainant when such disclosure becomes necessary to fair and just disposition of the charge or complaint in enforcement proceedings. D. This chapter shall not be construed to require disclosure of the following personnel records or information: . '- . " . 05 1. city personnel records, including employment applications and examination materials, payroll and medical records which reveal the financial or medical status of any specific individual and, in addition, those records the disclosure of which would constitute an unwarranted invasion of privacy. This subsection does not protect from disclosure the following personnel information: a. employment applications and examination materials of city officials appointed by the city council; b. the names and position titles of all city employees; c. the position held by a city employee; d. prior positions held by a city employee; e. whether a city employee is in a collective bargaining unit; f. the dates of appointment and separation of a city employee; and g. the compensation authorized for a city employee. A city employee has the right to examine the employee's own personnel files and may authorize others to examine those files. 2. information which municipal govemments engaged in collective bargaining regularly consider to be privileged or confidential for purposes of successful collective bargaining. E. This chapter shall not be construed to require disclosure of the following privileged records or information: 1. communications between any agency and the city attorney which contain legal questions concerning potential, pending or actual litigation: This subsection does not protect from disclosure documents that were public records prior to the commencement of the litigation, and public records that are otherwise subject to disclosure may not be protected from disclosure by mere submission to the attorney. Any documents marked "confidential" which are submitted to the agency from the municipal attorney's office shall only be produced if the city attorney so authorizes. With respect to a person involved in litigation, the records sought shall be disclosed in accordance with applicable court rules; and 2. information obtained by and in the custody of insurance carriers insuring the city and their attorneys and agents regarding possible and pending claims against the city. F. This chapter shall not be construed to require disclosure of records or information specifically prepared for or produced during a legally convened executive session; provided, however, that public records which are otherwise subject to disclosure may not be protected from disclosure by mere submission during an executive session. (Ord. 599, ~ l(part), 1988; Ord. 610, 1988; Ord. 642 ~ 4, 1991; Ord. 651,1991) Section 2. This ordinance shall take effect ten days following its enactment. ENACfED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. , THE CITY OF SEWARD, ALASKA . ..~ 06 Agenda statement To: Seward City Council . Jean Lewis, City Cle ., Clad< Comridge ~ lrf -0 S- Meeting Date: December 12, 2005 From: Thru Agenda Item: Ordinance Change BACKGROUND & JUSTIFICATION: It is the policy of the city administration to not allow any information to be given to callers, public, or proposers themselves, on bids or request for proposals before the city decidell who gets the award and sends the notice of intent to award letter out. Allowing this information to be public has resulted in unfair advantages to bidders and proposers which have resulted in the tax payers ultimately paying more for services, by bids being withdrawn and new ones submitted once it was known how many and who was putting in bids on the project. This change would insure the information remain confidential, until it can be released without giving any person an unfair advaJlltage. The RFP and bidding process would remain the same. Bids would still be openl~d in the public view. The city clerk's office fields numerous r~uests for information each day. Past policy was ambiguous and seemed inconsistent. This change in the code would give thl~ clerk's office clear direction to deny these requests for information about bidders and bid contents lmtil a notice of intent to award has been issued by the city. INTENT: To clarify what information will be given out during various stages of the bid and RFP process. CONSISTENCY CHECKLIST: Where applicable, this agenda statement ill consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: None Approved by Finance Department: ~ ~ RECOMMENDATION: Recommend this ordinance change be introduced December 12, 2005, and set (in fora public hearing item on the January 9, 2006 city council agenda for possible e.nactment. 07 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONSENTING TO THE TERMINATION OF LEASE WITH DOT AND LINNE BARDARSON AND ENTERING INTO A NEW LEASE WITH JURIS MINDENBERGS, OF LOT 5B, BLOCK 1, SMALL BOAT HARBOR SUBDIVISION WHEREAS, the City of Seward entered into a Lease Agreement with Dot and Linne Bardarson effective April 2004 for lease of Lot 5B, Block 1, Seward Small Boat Harbor Subdivision containing 4250 sq. ft more or less and as further described in the Lease; WHEREAS, on August 22, 2005 the City Council adopted Resolution 2005-69 authorizing the City Manager to terminate the Lease and enter into a new Lease with Mark and Yolanda Ifflander; and WHEREAS, in October 2005 the City received written notice from the Bardarson's that the proposed sale to the Ifflanders was terminated and requesting a termination of the Lease in conjunction with a sale to Juris Mindenbergs; and - WHEREAS, Juris Mindenbergs desires to enter into a new Lease with the City in conjunction with his purchase of property from Dot and Linne Bardarson; 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 a Termination of Lease with Dot and Linne Bardarson and to execute a new Lease with Juris Mindenbergs, each in substantially the form as presented at this meeting. Section 2. Resolution 2005-69 is hereby rescinded in its entirety. Section 3. This resolution shall take effect 30 days from the date and posting of adoption and the authorization herein shall expire if the lease termination and new lease are not executed by all parties by March 1,2006. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. ~ n8 l' COUNCIL AGENDA STATEMENT From: January 23,2005 Clark Corbridge, City Manager (/a.l. J-J'i - 0 b Scott Ransom, HarbormasterA R Consenting to a Termination of Lease with Dot and Linne Bardarson, and entering into a new Lease with Juris Mindenbergs of Lot 5B, Block 1, Seward Small Boat Harbor Subdivision. . Meeting Date: Through: Agenda Item: BACKGROUND & JUSTIFICATION: Dot and Linne Bardarson entered into a lease with the City of Seward effective: April 2004 for a lot in the harbor area. This Lease encompasses Lot 5B, Block 1, Seward Small Boat Harbor Subdivision in the Seward Recording District. The Bardarsons request the City Council's consent to terminate the Lease at the time a sale of property closes between the Bardarsons and Juris Mindenbergs. The Juris Mindenbergs in turn request a new lease of the same real property. Thl~ Lease Termination with the Bardarsons and form of new Lease with the Juris Mindenbergs would he in substantially the form presented at this meeting. If approved by City Council, the consmt to terminate the Bardarson's lease and enter into a new lease will be effective in 30 days. The termination and new lease would be signed when the sale occurs between the parties, and the Ci1y Council's consent would expire March 1,2006 if the sale has not closed by that date. Resolution 2006-8 also terminates Resolution 2005-69. The resolution approved by the City Council on August 22, 2005 authorized a new lease with Mark & Yolanda Ifflander. Since that time, the City was notified that the potential sale to the Ifflanderswill not occur. The City recently conducted appraisals of its rental property and new rental rates are now in effect, based on fair market rental values. The assignment and release will not decrease the rent paid to the City. The new lease includes an annual adjustment to rent based on the Anchorage Consumer Price Index. CONSISTENCY CHECKLIST: 1. Comprehensive Plan X Economic Development. Small Boat Harbor Development: expand and maximize potential of the existing harbor. 2. Strategic Plan X Growth Management and Land Use Planning: Promote residential and commercial development inside the city 3. Other: Municipal Lands Management Plan X Leases: ... continue to dispose of commercial and industrial lands through long term leases... Small Boat Harbor Management Plan Lands: ... ensure that existing lease sites are fully developed... FISCAL NOTE: The rent is Five Thousand Six Hundred Dollars ($5,600.00) annually, subjec:t to fair market value increases every five years. Upon execution of the new lease, the rent will be subject to annual CPI nQ increases each year in between. Approved by Finance Department J~ 1~? RECOMMENDATION: Council approve Resolution 2006-8, authorizing the City Manager to enter into a Lease Termination with Dot and Linne Bardarson and a new Lease with Juris Mindenbergs for Lot 5B, Block 1, Seward Small Boat Harbor Subdivision. , 10 After Recording Return To: City of Seward Attention: City Manager PO Box 167 Seward, Alaska 99664 AGREEMENT TO TERMINATE LEASE This Agreement to Terminate Lease ("Agreement") is entered into and effective as of _, 2006, by and between the City of Seward, Alal)ka, a home rule municipal corporation, organized under the laws of the State of Alaska whose address is P.O. Box 167, Seward, Alaska 99664 (the "City") and Dot and Linne Bardarson, whose address is P.O. Box 1189, Seward, Alaska 99664 ("Bardarson"). . WHEREAS, the City, as lessor, and Bardarson. as lessee, entemd into a Lease in April 2004 for the real property described herein; and WHEREAS, the City and Barda~on now desire to terminate the Lease upon sale of certain property from Bardarson to Juris Mindenbergs; IN CONSIDERATION of the foregoing recitals and mutual promises and covenants herein contain the parties hereby agree as follows: The Lease described in the above recitals encompassing Lot 5B, Block 1, Seward Small Boat Harbor Subdivision, according to Plat 2000-19, Seward Recording District, Third Judicial District, StatE I of Alaska is hereby terminated effective upon execution by all parties ofthis Agreement to Terminate Lease. Each party has full power and authority to enter into this Agreement and no further action or approval is required to cause this Agreement to be binding and enforceable against either party in accordance with its terms. Agreement to Terminate Lease January 2006 -Page 1 OF 3- 1 1 LESSOR: THE CITY OF SEWARD LESSEE:' By: By: Clark Corbridge, City Manager Dot Bardarson By: Linne Bardarson ATTEST: Jean Lewis, CMC City Clerk STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _ day of I 2006, by Clark Corbridge, City Manager of the City of Seward, Alaska, on behalf of the City: . . Notary Public in and for Alaska My Commission Expires: Agreement to Terminate Lease January 2006 -Page 2 OF 3- 1~ STATE OF ALASKA THIRD JUDICIAL DISTRICT ) ) ss ) -" THIS IS TO CERTIFY that on this day of . . ,.- .2006, before methe undersigned, a Notary Public in and for the State of Alaska, duly commi!ssioned an sworn as such, personally appeared Dot Bardarson, individually, known to me andto me known to be the individual named above and who executed the foregoin" instrument, and acknowledge to me that she signed the same freely and voluntarily for the uses and purposes therein set forth. . Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2006, before me the undersigned, a Notary Public in and for the State of Alaska, duly comm issioned an swom as such, personally appeared Linne Bardarson, individually, known terme and to me known to be the individual named above and who executed the foregbin!~ instrument, and acknowledge to me that she signed the same freely and volurit~Fily for the uses and, purposes therein set forth. . . . Notary Public in and for Alaslca My Commission Expires: . Agreement to Terminate Lease January 2006 -Page 3 OF 3- .. .'. , , 1 q LEASE AGREEME Effective Date: r 1 14 TABLE OF CONTENTS 4. ARTICLE 5.1 ...... ................ ........ ........ .... ....... .............. ........... ........... .................; 8 5.2 Iprovements ......................................................... ...................:......... 8 5.3 Easem ... ........... .................... ................ ............ ......... .......... "............................. 9 ARTICLE 6 - CON UCTION BY LESSEE........................................................................ 9 6.1 Improvements on Leased Land .................................................,............................. 9 6.2 City Review of Construction .....................................................".......................... 10 ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS ........ ,........................... 11 7.1 Return of Leased Land in Original Condition .......................... ,...............:........... 11 7.2 Return of Leased Land in Different Condition ......................... ".......................... II ARTICLE 8 - FORCE MAJEURE ............................................................... ".......................... II LEASE AGREEMENT BETWEEN TIlE CITY OF SEWARD AND JURIS MINDENBE~GS FEBRUARY 2006 -PAGE i- i.,. .5 ARTICLE 9 - LESSEE'S ACfS OF DEFAULT ..................................................................... 11 ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE .................................................. 12 ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE ....................... 14 11.1 Real Property Improvements ................................................................................ 14 11.2 Personal Property.................................................................................................14 ARTICLE 12 - ASSIGNMENT OR SUBLEASE ............................... .................................. 14 12.1 Assignment of Lease or Subleasing............................. ..... ............................ 15 12.2 Assignment of Lease for Security ............................ ........................................ 15 12.3 Assignment to Affiliate ....................................... ..;................................ 15 ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNI ..............................16 ARTICLE 15 - INSURANCE ....................................... ......................... 16 15.1 Minimum Insurance Requirements ..... .................... 16 15.2 Subrogation Rights Waived............. .. .......... 17 ARTICLE 16 - CONDEMNATION................. ..... ........................ ...............17 ARTICLE 17 - ARBITRATION ................................. ........ ........................................ 19 17.1 Arbitration ................................................... ................................................. 19 ARTICLE 18 - MAINTENANCE AN PAIRS ............. ............................................. 20 18.1 Normal Maintenance ........ .. ..................................20 18.2 Safety Issues ......................... ;..................................... 20 18.3 Cost of Repairs....................... ........ ..... . ........................................... 21 ARTICLE 19 - ENVIRO AL CON ................................................ 21 19.1 Hazardo .................. ................. ..................................................... 21 19.2 Permi ....................................................................23 ARTICLE 20 - E ..................................;.............................24 ARTICLE 21 - CONDI N S ............................................................... 24 ARTICLE AI B ......................................................................... 24 ARTIC ENCE ..............................................................................25 ART ..... ................ ........ ......... ........ ........... .................. 25 AR REST .......................................................................25 ARTlCL E NT .................................,............................................... 25 ARTICLE LAW ........................................................................................ 25 ARTICLE 28 - ALIDITY.......................;............................................................ 25 ARTICLE 29 - SHIP OF PARTIES .................:.................................................. 25 ARTICLE 30 - INT T ATION........................................................................................ 26 ARTICLE 31 - C ONS .......................................................................................................26 ARTICLE 32 - AMENDMENT ................................................................................................. 26 ARTICLE 33 - NOTICES ............................................................................................................ 26 ARTICLE 34 - FIRE PROTECTION.......................................................................................27 LEASE AGREEMENT BETWEEN THE CllY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE ii- !:( 16 LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward,Alaska99664 Juriis Mindenbergs (the "LESSEE"), whose mailing address is 4128 148th Avenue NE, Re d. a;hington 98052. WHEREAS, LESSEE has indicated his desire to leas Harbor Subdivision. according to Plat 2000-19, Seward Re r State of Alaska; WHEREAS, the City Council of CITY defined below) to LESSEE for the purposes describe 1.1 (l is located in the City of Seward, Alaska. The arbor Subdivision, according to Plat 2000-19, Seward d Jud at District, State of Alaska,. containing 4250 square feet, Land"). depicted on the attached Exhibit A, which is in<:orporated herein by 1.2 Covenant of iet 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.aod warrants that: a) LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; LEASE AGREEMENT BETWEEN TIlE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE I - 17 1.3 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. . 1.4 es that it has inspected the Leased Land and t relianc any expressed or implied representations or ations in Section 1.2 hereof), or agents of CITY, dition or c aracteristics thereof and the legal description or e . on 1.1 or Exhibit A hereto. 1.5 sole st, shall obtain all permits necessary to the construction and on the Leased Land. CITY may from time to time, upon request of ute su documents, petitions, applications and authorizations as may be dying fee owner, to file with an agency or public body responsible ion for conditional use permits, zoning and re-zoning, tentative an~ final tract approval precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, departnlent, 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, LEASE AGREEMENT BE1WEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 2. " ..... . i8 ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on }.:ITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e,g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of-way permits), the Alaska Departm tofFish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agree niplat in accordance with the description prepared by LESSEE requests a replat of the Leased Land prio the preparation and filing of the replat, and LE in assisting with the preparation and filing 0 any other documents necessary to comple or a portion of the Leased Land. LESSEE shall plat notes as may be required by CITY or other go filing the plat of the Leased Lan the plat ofC Leased Land. C ifthe Clerk 0 Resolution to any dama approved. SSEE understands and assumes the risk that under the Y thi EASE may be voided by referendum. LESSEE agrees that g this LEASE is the subject ofa referendum petition filed with the E shan have no rights under this LEASE unless and until the ro by the voters of the City of Seward, and LESSEE shall not be entitled any other relief against CITY in the event the :Resolution is not so 2.1 ease Te . .shall be in ac.;ordance with CITY's esolrition"). The Lease Term shall commence t date shall be the effective date of this shall runfor30 years from the Effective . Except for extensions as provided in Section subject to enewal. 2.2 2.3 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for two (2) additional five (5) year periods (cumulative extensions not to exceed ten (10) years), provided that: a) LESSEE exercises any applicable option to extend at least ODl~ hundred and eighty . .. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS, FEBRUARY 2006 -PAGE3- ". "'19 ,I, .. '.~ ". (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; and c) LESSEE shall exercise its options to extend by sending written notice thereof in accordance with the provisions of Article 33 of this LE E. 3.2 ed July 1, 2010, and on the ent Date"). The adjusted e shall be the appraised fair Leased Land at the highest and t and b use of the Leased Land shall be ded or actual use of the Leased Land unless that e Leased Land. CITY shall complete such ort to LESSEE not less than ninety (90) days . ARTICLE 3 - RENTAL RATE 3.1 SE through June 30, usand Six Hundred on the Effective r or before , July 20 and e annual rental 3.3 adjust the rent as of any successive Rental Adjustment se, retain an independent State of Alaska certified MAl ais stitute), who shall determine the "Fair Market Rental Value" cordance with this Article 3, exclusive of improvements placed clusive of all improvements made by CITY (including those made this LEASE). The appraiser's report shall be delivered to LESSEE (90) days before the Rental Adjustment Date. The appraiser's determination air Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects.to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAl appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE4- .. '.. '. 20 with this Article 3, If LESSEE'S appraisal detennines a Fair Market Rental Value that varies from that detennined by CITY's appraisal by no more than twenty percent (20%), th~m the adjusted rental rate shall be the average of the rental rates detennined by the two appraisals. If LESSEE'S appraisal determines a Fair Market Rental Value at yaries from CITY's appraisal by more than twenty percent (20%), then, unless C . ::;SEE agree on a rate themselves, the adjusted annual rental rate of the Lease d shall be determined in accordance with the arbitration provisions contained in 1 ofUds LEASE. 3.4 Effect of Late Appraisal by CITY. If, for anyreas or deliver a copy of the appraisal report to Adjustment. Date, CITY may proceed to c appraisal report to LESSEE at any time th rate shall not be effective until the quarterly pa date CITY delivers the 'appraisal report to LESSE nplete the appraisal efore the Rental py of the ual rental following the 3.5 D e, CITY fails to obtain an e appraisal report to the age an independent State of e) atLESSEE's expense to make 3 and s 't a copy to CJTY before the next ate. Howe , LESSEE must notify Cny in writing within Rental Adju t Date of LESSEE's election to obtain an EE'S ap seT's detennination of the Fair Market Rental SEE of its objection within thirty (30) days of , and C shall then engage an independent State of Alaska. er Appraisal Institute) at CITY's elCpense to make an tal Value as of the Rental Adjmitment Date and in ac icle . If the CITY's appraisal determines a Fair Market Rental Valu at detennined by LESSEE'S appraisal by no more than twenty percent djusted rental rate shall be the average of the rental rates determined by the two If the CITY's appraisal detennines a Fair Market Rental Value that varies from L 's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agre a rate themselves, the adjusted anIlualrental rate of the Leased Land shall be determined in accordance with the arbitration provisions 'contained in Article 19 of this LEASE. " 3.6' Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the . , . appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date, LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBEFlGS FEBRUARY 2006 .PAGES. ':\. 2'1 If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the' quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Artic1e 3 shall not postpone LESSEE's obligation to pay rent at the rate esta ishedby CITY . LESSEE shall pay the amount of rent as established or adjusted by; until. the question of objection to the rental rate is finally resolved. At such time objection to the rental rate is resolved, an appropriate credit or adjustment shall be ctive to the date thenew . rental rate was established by CITY or in cases where obtain an appraisal or deliver the appraisal report to the LESSEE, to the ate. 3.7 payments ot received by the due date shall hear interest until , or the maximum rate permitted under Alaska law, y late fee of$2.50, or such amount as may be established ance or resolution and relating to late fees for CITY leases 3.8 TICLE 4 - USE OF LEASED LAND 4.1 Use of Leased nd. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. 4.2 . Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .pAGE 6- , . I), 22 that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. 4.3 c) LESSEE shall not use the Leased Land in any m thereon which would inhibit the use of adjacent or d) e Leased Land. Any Manager, prior to of any changes to according is LEASE. 4:4 4.5 shall have the right to make amendments to its tariffs, ed f1 from time to time even if those adjustments shall cost perations or use of public facilities, and CITY is free to do so s not impose any greater burden or higher ratf: upon LESSEE than user of the public facilities. 4.6 Timefor Pa t of Utilities and Taxes. LESSEE will pay for utilitie:; and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided tnat LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space including those who would be in competition with LESSEE or LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBEItGS FEBRUARY 2006 .PAGE 7. 23 . who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 to any re d, rebate, or payments from CITY for any rent, ESSEE with respect to any required permits for E's facilities on the Leased Land, it being the intent of the required permits be solely a risk undertaken by LESSEE. 5.2 Third- nts, At the request of LESSEE, CITY shall, from time to time, execute an :ver join In execution and deliveryof,such docurrientsas are appropriate, necessary, or ed to impose upon the Leased Land in accordance with the terms of this LEASE cov ts, 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: . . LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE8- ".;1 .'t a) All such matters shall be limited to the Lease Term and llhall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall bewi~ou xpense therefore,and the cost and expense thereof shall be borne solely by LES 5.3 c) At the expiration of the Lease Term (includin improvements on the Leased Land other than property of CITY without the payment of co d adjacent r, drainage, CONSTRUCTION BY. LESSEE 6.1 Improv remodel, r Leased Land, on Le d Land. LESSEE shall have the right to erect, maintain, alter, ebuild, build and/orreplace buildings and other :improvements on the t to the following conditions: a) LESSEE shall cause to be operated on the Leased Land a retail enterprise by June 1, 2006. b) The cost of any construction,reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 9- 25 c) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. 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 prior to commencement of construction. 6.2 tion. ITY shall have the right to review initial plans, including under Section 6.1 hereof, and any future changes or additions to the Leased Land, by reviewing the design thereof prior to the struction. CITY shall have the right to comment upon that design and. to make reasonable changes so as to avoid interference with public operations, bu e 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 LEASE AGREEMENT BETWEEN mE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE 10. e) LESSEE is solely responsible for resurveying and 1 Leased Land in such manner not to violate building into rights-of-ways or easements. On completi shall provide CITY a copy of an as-built s y dep completed on the Leased Land. f) g) a Statutes, give notice of non-responsibility for by LESSEE on the Leased Land. al, state and local statutes and regulations with uding but not limited to all applicable building, ~a Land without encroaching upon any land, easements, rights-of-way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantee:; from its contractors, !lIld CITY shall be named as an additional insured. ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. . Subject to the herein, upon termination of this LEASE for any reason, L Land to CITY in the same condition as at the commenc normal, non-abusive use. The Leased-Land shall be contamination arising out of or resulting from or or use of the Leased Land during this LEASE. 72 ~Secti~ all b 'LESSEE Act of Default" under this LEASE and the terms all mean, whenever they are uSed in this LEASE, anyone or more of 9.1 to pay promptly when due, and in no event later than twenty (20) days e thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this LEASE fora period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that ifsaid default is such that it cannot be corrected within the appHcable period, it shall not constitute an act of LEASE AGREEMENT BETWEEN TIlE CITY OF SEWARD AND JURIS MlNDENEiERGS FEBRUARY 2006 .PAGE 11- , - 27 default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. . 9.3 The making by LESSEE of an assignment for the b~efit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any stee for itself or for any substantial part of its property; or the commencement of any p . g relating to LESSEE under any bankruptcy, insolvency, reorganization, arrange or readjustment of debt law or statute or similar law or statute of any jurisdiction, ow or hereafter in effect which shall remain undismissed for a period of from the date of commencement thereof. 9.4 .1 enterprise on the Leased Land and place the facilities 9.5 9.6 aintain its operations within the Leased Land or to keep the public LE 10 - REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law or otherwise: lEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 12. ':1_. 28 10.1 CITY may distain 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 distained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession there property of LESSEE which CITY has waived its right to d' remove all personal property of LESSEE from the Lease be stored in place or may be removed and stored in a cost of LESSEE all without service of notice or re 0 expressly waives. a) 10.3 In addition to the above, CITY may: b) Collect any and all rents du the Leased Land; ts or other occupants of c) teiminated or not, reasonable y CITY by reason of the breach or d) amount e due immediately on breach equal to the term of this LEASE provided that if the CITY for the unexpired term of this LEASE, the CITY will refund , after deducting all of the CITY's expenses in or in (including without limitation all repossession costs, ISSI legal expenses, administrative I~xpenses, costs of reparations for reletting) as such excess amounts are received by the vent shall the refund exceed the amount recovered from LESSEE; e) damages incurred by CITY by reason of LESSEE's default or breach inc1ud' , 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. t) Remove or require the removal of any improvements constrllcted 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. LEASE AGREEMENT BETWEEN TIlE CITY OF SEWARD AND JURIS MINDENBER.GS FEBRUARY 2006 .PAGE 13. ',..G 29 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess .. the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. llowing an act of default shall a waiver thereof, but any such arid as often as may be deemed 10.5 No expiration or termination of this LEASE shall expi obligation to perform of LESSEE's which arose prior to insofar as otherwise agreed to in this LEASE. 10.6 10.7 NTS INSTALLED BY LESSEE 11.1 All imp vements constructed by LESSEE on the Leased th ame, such as buildings, warehouses, conveyor systems, es or berms and similar improvements, shall become the erm ion of this LEASE for any reason; provided, however, that EE to remove any improvements designated by CITY and without . 11.2 Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upo ermination of this LEASE for any reason, may, but need not, promptly . remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 - ASSIGNMENT OR SUBLEASE . LEASE AGREEMENT BE1WEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 14- "'0 J 12.1 Assignment of Lease or Subleasing. The parties recognize that thii; LEASE bas been detennined to be in the public interest by the City CoUncil of CITY for 1he reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. a) ther than a failure to make. any ney, s~l dertake within thirty (30) days after d shall diligently and in good faith proceed to E or relet the Leased Land unless Lender a reasonable period of time thereafter; and 12.2 Assignment of Lease for Security. Notwithstanding Sec' assign, encumber or mortgage its interest in this LEA Land, by deed of trust or other security instrument; to development Of or operations on the Leased Land, obligations of LESSEE under the tenns ofthis Lender, at the address provided to CITY by breach of LESSEE under this LEASE. do so and without thereby assuming the obligatl good such default or breach within thirty (30) d breach. Notwithstanding the pro . . ns of Article 1 shall exist until. expiration of thi days after su provided. . h notice 1 given is a: breach of Section 9.3, CITY shall not . e orded to it under Article 10 above so long as LESSEE session of the Leased Land and satisfies LESSEE's the t s of this LEASE. . Upon foreclosure 01' other assertion of its Lender may further assign, transfer, or dispose of its interests, subsequent assignee, purchaser or transferee shall remain bound by term of this LEASE. 12.3 Assignment to . rtfiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest I ; provided, however, that LESSEE's full faith and credit shall remain obligated under this I Affiliate means a person that directly or indirectly through one or more intermediaries controls. or is cont",Ued by, or is under common control with, a corporation subject to the Alaska Corporation Code. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBEIlGS FEBRUARY 2006 .PAGE IS. I , ,~ 31 LEASE as though the assignment had not taken place. ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify and hold harmless CITY, its 0 cials, employees, agents, and contractors from any and all liability or claims for damages, . 'ng personal injuries, . environmental damage, death and property damage arising out of 0 ulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESS ssees, assignees, agents, contractors or the public, except for damages arising from ence or willful acts or omissions of CITY, its officials, employees, agents, or c . on or proceeding is brought against LESSEE by reason of any such occurr ITY promptly in writing of such action or proceeding. 15.1 m any and all liability or claims . s' from the sole negligence contractors. CITY shall defend, indemnify an for damages, including personal injuries, or willful acts or omissions of CITY, its 0 ents. Prior t ommencement of the Lease Term or LESSEE'S , LESSEE sh cure and maintain, at LESSEE's sole cost ercial ge 1 liability insurance with limits ofliability of ,000,000) for all injuries and/or deaths resulting o MILL DOLLARS ($2,000,000) limit from anyone 'ye ommercial general liability insurance shall include injury, and property damage or destruction. Coverage s e shall include collapse and underground property damage ility insurance coverage in the amount of not less than TWO 2,000,000) is also required. . owned and non-owned automobile liability insurance With limits of . liability of not s than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE 16. , . ,\..', 32 order to provide continuously throughout the tenn of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accep1ed 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 utiliied in assessing whether the minimum insurance requirements should be increased.. CITY shall notify LESSEE of any required increase in insurance coverage. 15.2 ennitted aw, LESSEEhc:rebyreleases CITY, s and volunteers and others working on behalf of o LESSEE or anyone claiming through or erwise, for any loss of my kind (including er casualty), even if such loss shall have been ce of the , its elected or appointed officials, employees or be Ifofthe CITY. This provision shull be applicable and respect to loss or damage occurring during the time of L use r cluding LESSEE's occupancy or use prior to the Effective Date and LESSEE's policies of insurance shall (;ontain a clause or endorse t that such release shall not adversely affect or impair such policies . or prejudic LESSEE to recover ther~der except as against CITY (including its elected and a ed officials, employees and volunteers and others working on behalf of CITY) during time of LESSEE's occupancy or US!;.. "LESSEE agref:s thatits policies of insurance will include such a clause or endorsement. msurance LESSEE. ARTICLE 16 - CONDEMNATION . If all or any part ofthe 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 LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGEI?- " ",~ 33 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 pub!' ESSEE shall make a good faith determination as to whether or not the taking of the part e Leased Land designated for condemnation will prevent it from continuing to operate on the d. If LESSEE determines in good faith that the condemning of such part of the Leased t it from continuing to operate on the Leased Land, LESSEE may notify CITY . t, and this LEASE shall then be terminated for all purposes effective fiftee SEE sends such notice to CITY, or. at such other later date as 'ce .and such termination shall be treated.in the same manner erm of this LEASE. LESSEE shall, as a condition precedent tos , remove al ncumbrances, debts and liens to which the Leased Landis subject. If at e of such partial taking for public use, LESSEE determines that such parti . g will not prev p1 continuing to operate, then LESSEE and CITY shall negotiate an eq d partial aba t 0 the rent beginning to be effective on the actual date when LESSEE . prevente utilizing the condemned land. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 18- 34 ARTICLE 17-"ARBITRATION 17.1 Arbitration. a) b) .cable only to contract, negligence, and similar ASE, and shall not be used to resolve or , mtentional misrepresentation, nor any claim e in the State of Alaska. arbitration of disputes may be served by either party to party. Arbitration of any dispute or claim shall be ingl bitrator selected from a list of not less than five arbitrators presiding Superior Court Judge or other appropriate judicial officer aska. The arbitrator shall be a person who (a) has not less than five Ie experience in the State of Alaska prior to appointment; and (b) such ence include substantial experience with long-term commercial real prope ansactions. Each party shall be proVided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE 19- "" '- S- O as the parties milY agree, Each party shall produce at the request of the other party, at' least thirty (30) days'in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevailt to the issues or likely to lead to relevant information. . . e) In deciding the claim or dispute, the arbitrator shall foIl applicable Alaska law, and the written decision shall be supported by subst idence in the record. Failure to apply Alaska law, or entry of a decisio t is not based on substantial evidence in the. record, shall be additional gro odifying or vacating an arbitration decision. 18.1 . ARTICLE 18 ~ MAlNTEN . 18.2' . fy LESS in writing of any deficiencies in the performance of 'bil' ies as they relate to public health or safety and LESSEE ys of receipt of such notice advise CITY in writing of its ce of any work necessary to cure such deficiencies. If such e to the safety of LESSEE's operation such that the surrounding land and port faxposed to risk, unnecessary potential hazards; or a risk to the public interest (as di shed from a business risk), or if CITY is not satisfied with the proposed schedule of r 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 pUIpOse of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations. if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk and expense. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE20- 36 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSE may either deduct from future rental payments the cost of such repairs or be reim erefore. In deciding whether repairs requested by CITY or required by anengi ng report are necessary, the arbitration panel is to give primary consideration to the s welfare of the Seward port facilities and the citizens of Seward in light of the hi in the industry. 19.1 Hazardous Materials. If any facility or service provided by CITY to t to changes in environmental control stand improvement by reason of a change in LE from, LESSEE shall either construct such impro CITY for such work at the option of CITY. ARTICLE 19 - E a) yother p ovision of this LEASE to the contrary notwith- eS ITY from any and all claims, demands, penalties, fines, ments, damages, costs or expenses (including, without' ey's fi , court costs, litigation expenses, and consultant and expert to, during, and after the term of this LEASE, and resulting from the rage or disposal of Hazardous Material on the Leased Land by redecessors in interest, or arising out of or resulting from LESSEE's, the Leased Land or the operations of its predecessors in interest at the Lease d except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, Without limitation, any arid all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal, state or 10c81 agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 21 - 37 i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ' ii) Any Hazardous Material permitted on the Le paragraph, and all containers therefore, s disposed of in a manner that complies w' laws or regulations applicable to such iii) iv) er provision of this LEASE to the contrary SEE sh efend, indemnify and hold CITY harmless from and an ,penalties, fines, judgments, liabilities, settlements, (including, without limitation, attorney, consultant and cost d litigation expenses) of whatever kind or nature, known or ent or otherwise, arising out of or in any way related to: e sence, disposal, release or threatened release of any such Hazardous rial which is on or from the Leased Land, soil, water, ground water, getation, buildings, personal property, persons, animals or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or relatoo to !luch Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached or government order LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE 22. 38 relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1 (d) shall apply only ifthe acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (1) occurpriorto or during the term of . LEASE; and (2) arise in whole or in part from the use of, operations 0 tivities on the Leased Land by LESSEE or LESSEE's predecesso interest, employees, agents, invitees, contractors, subcontractors, auth esentatives, subtenants or any other persons. The provisions of h shall be in addition to any other obligations and liabiliti to CITY at law or equity and shall survive the erein and shall survive the termination of . e) Operator. For all purposes, LESSEE s the Leased Land. f) ardous Material is any rwhich is regulated by any and all material or substances te, extremely hazardous waste or vironmen w. Notwithstanding any statutory s of this LEASE, the term Hazardous Material . cluding crude oil or any fraction thereof, d other petroleum wastes. efined. As used in this LEASE, Environmental Laws include d deral ordinances, statutes, and regulations, as now in a from time to time, relating to the protection of human viro ent, as well as any judgments, orders, injunctions, awards, ts, conditions, or other restrictions or standards relating to same. ws include, by way of example arid not as a limitation of the e foregoing, Alaska Statutes Title46, the Resource Conservation and t of 1976, the Comprehensive E.nvironmental Response, Compensation and Li ity Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURlS MINDENBERGS FEBRUARY 2006 .PAGE 23. ',L 39 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 anyoperations or activities on the Leased Land if the same is being carried out without necessary permits . violation of the terms of any permit or Environmental Law, or contrary to this b) Correspondence With and Reports to Enviro immediately provide CITY with copies of all copies, of all reports between LESSEE an agency regulating Hazardous Material use of the Leased Land. encies. LESSE:E shall and notice, including ocal government or operations on or E s I be construed to be "conditions" as well as expressing or imparting covenarits and conditions were use LE 22- NO WAIVER OF BREACH, "" No failure or LESSEE to insist upon the strict performance by the other of any term, covenant or tion of this LEASE or to exercise any right or remedy consequent upon a breach thereof shall c titute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant ~d condition of this LEASE shall continue in full force and effect with respect to any 9ther then existing or subsequent breach. ' , LEASE AGREEMENT BETwEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE 24. 40 ARTICLE 23 - TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 - COMPUTATION OF TIME Each and all of the terms, covenants and co of and shall be binding upon the successors in in ct to the matters covered y any party which is not The time in which any act provided by this LEASE is to be excluding the fIrst day and including the last, unless the last day is and then it is also excluded. This LEASE contains the entire a by this LEASE, and no other agreement, t contained in this LEASE shall be binding or enforced in aCcordance with the laws of the t in all respects to. the Charter and Code of ASE, and as they may be hereafter amended, Seward City Code. !fan or unenforceab way be affected, i ASE is held by a court of competent jurisdiction to be invalid, void of the provisions shall remain in full force and effect and shall in no validated. TICLE 29 - RELATIONSHIP OF PARTIES. Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained mthis LEASE nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship oflessee and lessor. lEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 .PAGE25 - 41 ARTICLE 30 - INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this EASE. Captions of the articles, paragraphs and subparagrap and reference only, and the words contained therein s amplify or aid in the interpretation, construction or m ARTICLE 31 - CAPTIONS E are for convenience to explain, modify, . s LEASE. ARTICLE 32 - er s be delivered in person or be sses stated in this Article and to . Notice by mail shall be deemed to EE to CITY shall be given to CITY at the anager OF SEWARD Box 167 Seward, Alaska 99664 All notices, following address: r requests from qTY to LESSEE shall be given to LESSEE at the Juris Mindenbergs 4128 148th Avenue NE Redmond, Washington 98052 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. .. . UWlE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS M~ENBERGS FEBRUARY 2006 .PAGE 26- ,!~ 42 01-17-200S 02:25PM FROM-TREND CONSTRUCTION INC +4258855873 T-254 P.02S/02S F-1S1 ARTICLE 34 - FIRE PROTECTION LESSEE sha11 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 lmch that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that 'With the rapid expansion of technology in the:field office prevention and control LESSEE's obligations hereunder may vary during the term oftbis LEASBand CITY maY submit LESSEE's comp1iaDce with its obliga:ticD hereunder to arbitndion not more :frequ.c:ntly than once each five years. . IN' 'WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSU: .. .,14- CITY OF SEWARD By. Clark. Corbridge Its: City Manager Date: ATTEST: Jean Lewis, Ode City Clerk BJ c:ll:loQlmlODlll>all S~cDltl\LDn1 Sellinp\T8IIIponuy1atel!l8t Filu1OJ..Kl'7 A\MhIlIe:DI>Cl'P LcDA ~ :Zoos (4).doc .L 43 . STATE OF ALASKA ) ) 5S. . THIRD JUDICIAL DISTRICT ) TillS IS TO CERTIFY that on this day of ,2006, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Clar Corbridge, known to me and to me known to be the City Manager for the City of Seward, Alas authorized to execute documents on its behalf, and is the individual named in and who e ted the foregoing document on behalf of the City of Seward for the uses and purposes there. STATE OF ALASKA WITNESS my hand and notarial seal the day and of , 2006, before me, the undersigned, appeared Juris Mindenbergs, known to me o executed the foregoing document for the s I the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: . LEASE AGREEMENT BETWEEN THE CITY OF SEWARD AND JURIS MINDENBERGS FEBRUARY 2006 -PAGE 28- 44 . Sponsored by: Corbridge Introduction Date: January 23, 2006 Public Hearing Date: February 13, 2006 Enactment Date: February 13, 2006 CITY OF SEWARD, ALASKA ORDINANCE 2006-001 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA., AMENDING SEWARD CITY CODE 12.01.010. USE OF TIMBER PILING, POST OR PIERS PROHIBITED WHEREAS, staff is requesting to amend ordinance 12.01.010 Timber piling, posts, or piers; and WHEREAS, code 12.01.010 Timber piling, posts or piers prohibited in its current fonnat: 'Construction of structures with timber piling. posts, or piers as the sole strucmral support. except for docks or wharves. is prohibited', is extremely vague and antiquated; and WHEREAS, it is recommended that City Council updates ordinance 12.01.010 Timber piling, posts or piers prohibited to read: 'Construction of strucmres with timber piling. posts, or piers as the sole strucmral support is prohibited except for docks, wharves, and other engineered stand-alone unheated structures expressly approved by the Building Official in accordance with the IBG as adopted by the city. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code is hereby amended to read as follows: 12.01.010 Timber pilines. posts or piers prohibited is hereby amended as follows (8trikethrsllgfts = deletions and, bold italics = new): Construction of structures with timber piling, posts, or piers as the sole structural support, eKeept . for asel.s af vmarles is prohibited except for docks, wharves, and other engineered stand-alone unheated structures expressly approved by the Building Official in accordance with the IBe as adopted by the city. Section 2. This ordinance shall take effect 10 days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS 13th DAY OF February, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor 45 . Council Agenda Statement . Meeting Date: January 23,2006 To: Clark Corbridge, City Manager dJl- I-It! -(J (, From: Tom Shepard, Project Manager C!?" Agenda Item: 2006- Amend Ordinance 12.01.010 Timber, pilings, posts, or piers prohibited BACKGROUND & JUSTIFICATION: Current City code item 12.01.010 Timber pilings, posts, or piers prohibited states, in its entirety that 'Construction of structures with timber piling, posts, or piers as Ute sole structural support, except for docks or wharves is prohibited'. Staff would like to amend the code to read: 'Construction ofstructures with timber piling, posts or piers as the sole structural support, is prohibited except for docks, wharves, and other engineered stand-alone unheated structures expressly approved by the Building Official in accordance with the IRe as adopted by the city. Staff feels the amendment is necessary due to the fact that the current writing of 12.01.010 is . extremely vague making it equally limiting regarding the use timber pile construction approaches. The original ordinance was written and revised in 1973 and 19~2, respectively. Research regarding the details around the reasoning behind the ordinance uncovered very little information leaving the ordinance extremely vague. The ordinance in its current form makes no mention of other building codes that govern the use of timber or of the use of wood preservative techniques. There have been substantial improvements to each in the past 25 years. The current mc code has provisions for timber pile construction and for . the types of wood treatments. There is a place for timber pile construction such as unheated sheds, minor storage facilities, temporary facilities, etc. ., With the current code standards, modern wood treatments, and with the Building Department oversight, timber construction can be an effective and useful form of construction in the appropriate situation. t CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, . Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: /"L2. . -'"'- It,. J. ~:;;-;;.. /tilt -jJO}J~ ~~\~Ov ~-f-~ 46 . , RECOMMENDATION: For Council to approve staffs recommendation to amend Ordinance 12.01.010 Timber pilings, posts, or piers prohibited to read: . 'Construction of structures with timber piling, posts or piers as the sole. structural support, is prohibited except for docks, wharves, and other engineered stand-alone unheated structures expressly approved by the Building Official' in accordance with the mc as adopted by the city. . 47 Sponsored by: Corbridge . CITY OF SEWARD, ALASKA RESOLUTION 2006-06 ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEW AD ALASKA, AUTHORIZING A CONTRACT WITH PUFFIN ELECTRIC TO INSTALL SECURITY CAMERAS IN THE SEWARD HARBOR AREA UTILIZING HOMELAND SECURITY GRANT FUNDS, AND APPROPRIATING FUNDS NOT TO EXCEED $119,439.00 WHEREAS, the City of Seward Police Department applied for and was awarded a program grant which has a remaining balance of$119,439.00 from the Division of Homeland Security for installation of remote security cameras for the Seward Harbor; and WHEREAS, the grant was accepted on June 14,2004 under Resolution 2004-65; and WHEREAS, the City of Seward issued a request for proposals for the project; and WHEREAS, the submitted proposals were reviewed based on the criteria established in the . request for proposals and it was determined that it would best serve the City's interest if the contract was awarded to Puffin Electric, a firm from Homer, Alaska; and WHEREAS, Puffin Electric, established they have an understanding of the project, the experience in installation of similar systems, and the project cost does not exceed available funds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Authorize the City Manager to enter into a contract with Puffin Electric to install the remote camera system in the Seward Harbor area, for an amount not to exceed the available grant funds of$119,439.00. Section 2. The amount of$119,439 is hereby appropriated from federal grant funds account no. 651-6513-468Q..OI00 to equipment account no. 651-6513-5930. Section 3. This Resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 23rd day of January, 2006 THE CITY OF SEWARD, ALASKA . Vanta Shafer, Mayor l ~~ .. # COUNCIL AGENDA STATEMENT. Through: Meeting Date: From: Agenda Item: Award Video Security System contract to Puffin Electric, using Homeland Security Grant Funds in an amount not to exceed available grant funds of$119,439.00. BACKGROUND & JUSTIFICATION: The City of Seward Police Department applied for and was awarded a program grant, which has a balance amount of$119,439.00, from the Division of Homeland Security for installation of remote security cameras for the Seward Harbor. The City of Seward issued a request for proposal (RFP) to install the Security cameras. Submitted proposals were reviewed using the parameters established in theRFP, and it was determined that it would best serve the City's interest if the contract was awarded to puffm Electric, a firm from Homer, Alaska. The project cost as submitted by Puffin Electric is $101,419.00. The available Homeland Security grant funds will cover this cost, and any required change-orderS. 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: Homeland Security Grant Funds are available, in an amount not to exceed ~ 19,439 from Homeland Security grant account number 651-6513-5930 Approved by Finance Department: ~ ~ . RECOMMENDATION: Council approve Resolution's 2006-06, Authorizing a contract with Puffin Electric in an amount not to exceed $119,439.00 and appropriating funds. . . . . 49 .. ~ PURCHASE AND SALE AGREEMENT BE'tWEEN THE CITY OF SEWARD AND PUFFIN ELECfRlC BETWEEN the City: CITY OF SEWARD, ALASKA TIlE ("CITY") Post Office Box 167 Seward, Alaska 99664 Phone: 907-224-3338 Fax: 907-224-8480 and: PUFFIN ELECTRIC Post Office Box 1724 Homer, Alaska 99664 Phone: 907-235-8160 Fax: 907-235-8150 The Project is: Install Video Security System, Seward Harbor Area The Commercial Electrical Contractor and Technical Partner for Puffin Electric is: ' SIMPLEX-GRINNELL Alaska Business License No. 288442 Alaska General Contractor License No.: 28439 The City and Puffin Electric agree as follows: SCOPE OF WORK Puffin Electric shall furnish all materials, labor and equipment necessary to furnish and deliver a complete video security camera system'capable of monitoring six (6) entrances to Seward Small Boat Harbor, one isolated ramp on opposite side of boat harbor and one City-owned site across Resurrection Bay from the Boat Harbor. ' Materials, equipment and labor shall be as indicated in the Request for Bid and Puffin Electric proposal dated November 23,2005. TERM puffin Electric agrees to commence the Scope of Work of this Agreement immediately upon signing of this contract, whicll shall constitute the Notice to Proceed. Work and delivery shall be completed on or before February 28th, 2006. . Purcbase and Sale Agreement between the City of Seward and Puffin Electric January 2006 _'Oan,.l nf"<_ ., ~O .J '."" '-' .. ~ CONTRACT PRICE The City agrees to pay Puffm Inc the fixed sum of One Hundred One Thousand Four Hundred Nineteen Dollars ($101,419.00), thirty (30) days following delivery of completed Work and Acceptance by the City. Change orders as authorized and approved may not cause the total project cost to exceed One Hundred Nineteen Thousand Four Hundred Thirty Nine Dollars ($119,439.00). PRIORITY OF CONTRACT DOCUMENTS All equipment and materials furnished intended purposes. No substitutions sha the City. CHANGE ORDERS The Contract Documents are listed below in order of priority in th discrepancies and by this reference made a part of this Agreem 1. This Agreement 2. SewardlInstallation of Security Cameras in the 3. Puffin Electric bid dated November 23,200 MATERIALS AND WORKMANSHIP Pu persons el directly erop contractual rela! Puffm Electric. ponsi or the acts or omissions of its subcontractors and of tly e ployed by them as for the acts or omissions of persons ctric. Nothing contained in this agreement shall create any n the City and any subcontracts, technical advisors or partners to r" It is specifically unde ood between the parties that this Agreement does not make anyone a third party beneficiary, nor does this Agreement authorize anyone not an authorized party to maintain a lawsuit for personal injuries or property damage. THE CITY'S RIGHT OF INSPECTION '" The City, Puffin Electric, or their employees or agents may, at any time during puffin Electrics' hours of operation, inspect the Scope of Work and services provided under this Agreement. Such inspections are solely for the benefit of the City and not for any third person. The exercise Purchase and Sale Agreement between the City of Seward and Puffin Electric January 2006 . -pages1S- by the City on behalf of the City, of its rights under this paragraph, shall not imply any obligation to inspect nor an obligation to inspect in any particular manner. The City reserves the right to refuse any damaged or unusable materials not of equal or better quality than the specifications. . AMENDMENT This Agreement shall only be amended, modified or changed, in writing, signed executed by an authorized representative of each of the parties. JURISmCfION, CHOICE OF LAW . The law of the State of Alaska shall govern the rights and obligations of the parties and interpretation of this Agreement. Any legal actions arising from this Agreement shall be brought in the Superior Court for the Third Judicial District of the state of Alaska at Anchorage. COMPLIANCE WITH LAWS Puffm Electric shall obtain, at its own expense, all necessary permits, right of way or other consents from all governmental agencies and shall comply with all applicable federal, state and local laws, statutes, regulations and ordinances. DEFAULT, REMEDIES, LIQUIDATED DAMAGES Puffm Electrics' failure to comply with any representation or warranty made in this Agreement or the Puffin Electric bid dated November 23, 2005 shall be considered an event of default. In addition, Puffin Electrics' failure to perform any other term, covenant or agreement contained in any of the Contract Documents shall be considered an event of default. Puffin Electric shall pay the City the sum of One Thousand One hundred forty one dollars ($1,141.00) per day for each day following the completion date until such default is cured and the Work is complete to the City's satisfactiqll'. An event of default by Puffin Electric and its refusal or inability to cure or diligently pursue a cure within the. time authorized by the City, shall give the City the right, but not the obligation to terminate this Agreement upon ten (10) days written notice to Puffin Electric. }'he City, upon teriI:J.ination ofthis Agreement, shall have the right but not the obligation to accept performance of Scope of Work up to the date of termination. Upon termination aSa result of puffin Electrics' breach, the City shall be entitled to a full refund of all amounts paid under this Agreement provided that in the event that the City exercises its ability to accept delivery of the Work, as completed to the date of termination, the City shall pay Puffin Electric for the Scope of Work completed to such date to the extent that such Work conforms to this Agreement. Amounts owed to either party pursuant to this paragraph may be offset. Remedies described herein are not exclusive and the City retains all other rights and remedies at . law or in equity. .. TIMELINESS Time is of the essence for this contract ~ Purchase and Sale Agreement between the City of Seward and Puffin Electric !l\~ .. REPAIR OF DAMAGES CAUSED BY PUFFIN ELECTRIC All damage and injury to property that is caused by, or that results from the carrying out of the Work, or from any act, omission or neglect ofPuffm Electric, its Subcontractors or its employees, shall promptly be remedied by Puffin Electric either by the repairing, rebuilding, or replacing of the property damaged or in some other manner satisfactory to the City and to the owner of such property. In case of failure on the part of Puffin Electric to promptly and satisfactorily remedy such damage or injury, the City may proceed to repair, rebuild or replace such property as required and the cost thereof will be deducted from any monies due or which may become due to puffin Electric. In applying the above provisions, the repairing, rebuilding or replacing of damaged property shall be understood to include the providing of temporary facilities that maY be needed to maintain normal serVice until the required repairing, rebuil<.ting or replacing is accomplished. RELEASE, INDEMNmCATlON AND INSURANCE puffm Electric agrees to release, indemnify, defend aIldhold harn1less the City, its officers, agents and employees from and against any and all claimS, demands, losses, defense costs or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon themorinjury to or deatliofpersons or damage to property as a result of, arising ol,lt <<;>f or in any manner connected with Puffin~lectrics' performance under the terms of this Agreement, excepting only liability arising out of the sole, gross negligence of the City. Without limiting PuffinEI~esiil.demni:ficatioI4 it is agreed that Puffin Electric shall maintain. in force, at all times,d9fi-t1g the performance of this. Agreement the following policies of insurance, with deductibl~ accePtable to the City, covering its operations: Insurance Minimum Limits Comprehensive General Lj3bility . . $1 Million combined limit each occurrence W orket'sCompensation!ErI1ployer Liability As. required by. Statute AutomobileI#ability Covering~dily injury & property damage, including all owned, hired and non-owned vehicles $1,000,000 combined limit per accident Professional Liability Covering all errors, omissions. or negligent acts in the performance of ... services under this agreement $2 Million per occurrence/aggregate Puffin Electric shall procure insurance for or assume fmancial respOnsibility for the full replacement value and to adequately insure against the loss of or damage to equipment during shipment and at all times in Puffin Electrics possession. Costs of shipping and any insurance are covered by the contract price. Purchase and Sale Agreement between the City of Seward and Puffin Electric . January 2006 n",,..,,. A .-& t:. c:::<') PufIm Electrics insurance policies shall contain the following clauses: 1. The City, its officers, employees and volunteers are added as additional insurer for operations of the named insured performed under contract with the City.. 2. Any insurance maintained by the City shall apply in excess, of and not contribute with, insurance provided by Puffin Electric. 3. All insurance policies required by this Agreement shall contain a clause that the insurance shall not be canceled, limited, or non-renewed without twenty (20) days prior to written notice delivered to the City. 4. All policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska and acceptable to the City. 5. Puffm Electric shall furnish to the City, certificates evidencing that it has procured the insurance required herein prior to commencement of the contract term. 6. All of the insurance policies described above shall provide that the insurers waive rights of subrogation against the City, its officers, agents and employees. ASSIGNMENT PROIDBITED Any assignment by Puffin Electric of its interest or responsibilities in any part of this Agreement or any delegation of duties under this Agreement shall be void and any attempt by PufIm Electric to assign any part of its interest or delegate duties under this Agreement shall give the City the right to terminate this Agreement immediately. This Agreement is entered into ~d effective when executed by both parties. CITY OF SEWARD, ALASKA PUFFIN ELECTRIC Clark Corbridge, City Manager Bruce Hess, President DATE: AITEST: DATE: Jean Lewis, CMC, City Clerk DATE: .. . Purchase and Sale Agreement between the City of Seward and Puffin Electric "., --~4 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH CHUGACH ELECTRIC ASSOCIATION, INC. TO EXTEND OUR CURRENT AGREEMENT FOR SALE AND PURCHASE OF ELECTRIC POWER WHILE A NEW AGREEMENT IS BEING ~GOTIATED WHEREAS, Chugach Electric Association, Inc. has proposed extending their existing agreement with the City of Seward for the Sale and Purchase of Power; and WHEREAS, the current contract as amended expires January 31,2006; and WHEREAS, The City is currently negotiating a new agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to enter into a contract with Chugach Electric Association. Inc. for the pmpose of extending our Power Sales Agreement, at its current rates, while a new agreement continues to be negotiated. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor .. , ~~ COUNCIL AGENDA STATEMENT From: January 23, 2006 Clark Corbridge, City Manager(JJt 1-(~O~ Tim Barnum, Electric Utility Manager ~.13.. Meeting Date: Through: Agenda Item: CEA Power Sales Agreement, . Contract Extension BACKGROUND & JUSTIFICATION: Chugach Electric Association, Inc. (Chugach) and the City of Seward (Seward) extended their power sales agreement by agreeing to a "Revised Amendment No. 1 to the Agreement for Sale and Purchase of Electric Power and Energy between Chugach . Electric Association, Inc. and the City Of Seward" in May 2001. This amendment, which was approved by the Regulatory Commission of Alaska (Commission) under Tariff Advice No. 219-8, expires on January 31, 2006. Negotiations have been ongoing since May 2005 and are still underway. Chugach Electric Association, Inc. and the City of Seward have filed a request with the Regulatory Commission of Alaska to allow a shorttertn extension of the current contract, at the current rates. This will allow for the continued negotiations of a new contract without any temporary changes to our current rates. . 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: /1.1 ~.' 11,. ~ ld ~n;:;-" Approved by Finance Department: ~~ RECOMMENDATION: . City Council approve Resolution 2006-10 authorizing the City Manager to enter into a contract with Chugach Electric Association, Inc. for the purpose of extending our Pow.er . Sales Agreement, at its current rates, while a new agreement continues to be negotiated. '; . '. 56 ;. 4 AMENDMENT No.2 TO AGREEMENT FOR THE SALE AND PURCHASE OF ELECTRIC POWER AND ENERGY BETWEEN CHUGACH ELECTRIC ASSOCIATION, INC. AND THE CITY OF SEWARD The Parties to this Amendment NO.2 state and agree as follows.: 1. Chugach Electric Association, Inc. and the City of Seward (the Parties) previously entered into an Agreement for the Sale and Purchase of Electric Power and Energy first approved by the Regulatory Commission of Alaska or its predecessor (Commission) in Docket U-98-70(6) and later extended through January 31, 2006 by the Amendment No.1 approved by the Commission in Letter Order LOI00468 dated April 19, 2001. These documents are hereinafter referred to as the Agreement. 2. By this Amendment No.2, the parties agree to amend the Agreement by extending its term through and including May 31, 2006, it being the intent of the Parties to allow continued electric power supply service to Seward for the period stated in this Amendment No.2 under the rates, terms and conditions previously approved by the Commission and as provided in the Agreement. 3. This amendment does not take effect without the prior approval of the Commission. .~ 4. Nothing in this Amendment No.2 shall be conS'f:!Ued before the Commission or in any other forum as agreement to, acquiescence in or agreement as to the appropriateness of the rates, terms or condWons of service beyond the term of the Agreement as extended by the Amendment No.2. ',C 57 THE CITY OF SEWARD BY: fA) t/~ City Manager Dated /-/6..... 0 h 58 . " l_} CHUGACH ELECTRIC ASSOCIATION, INC. BY: William R. Stewart Acting Chief Executive Officer . Dated '" January 16,2006 Tariff Advice Letter No. 268-8 Regulatory Commission of Alaska 701 West 8th Avenue, Suite 300 . Anchorage, AK 99501 Re: Request for Four-Month Extension of the Power Sales Agreement between Chugach Electric Association, Inc. and the City of Seward Dear Commissioners: Chugach Electric Association, Inc. (Chugach), holder of Certificate of Public Convenience and Necessity No.8, hereby submits a proposed contract amendment, as described be,low, for filing in compliance with the Alaska Public Utilities Regulatory Act. and 3 MC 48.200 - 3 AAC 48.430. By this filing, Chugach requests that the Commission approve the amendment to the contract (attached as Exhibit A)' authorizing Chugach to continue to serve the City of Seward, d/b/a Seward Electric System (Seward), under terms and conditions of service set out in the existing contract (attached as Exhibit B) for an additional four months. The existing contract term extends through January 31, 2006. This request is to permit Chugach to continue its service to Seward at the rate and under terms and conditions set out in the terminating contract through May 31, 2006. Background information. Chugach provides wholesale electric service Seward under a wholesale power contract (Contract) first approved by the Commission in Docket U-98-70(6) after a hearing. The Commission approved an extension of that Contract through January 31, 2006, in Letter Order L0100468 dated April 19, 2001. Sales to Seward represent approximately 2.5% of Chugach's total sales of energy (including both retaif and :if:) Request for immediate approval. . Chugach, with the support of Seward, asks the Commission to approve implementation of this second Contract extension filed with this TA letter to take effect on less notice than the 45 days notice to the Commission and less than the 30 days notice to the public required by AS 42.05.411. The good cause to support this request includes the following: o Chugach is not permitted to serve Seward except under rates, terms and conditions that have been approved by the Commission. See AS 42.05.411. However, ... 60 without additional authorization of tenns and conditions of service, Chugach will not have approved rates, terms or conditions of service to Seward. o Extension of the Contract for the requested four months preserves the status quo and allows continued operation under rates,. tenns and conditions previously approved by the Commission. o Beyond the four-month extension requested herein, Chugach does not expect to request extension of the existing Contract without changes. However, Chugach believes that a short, four-month authorization to continue to serve Seward under the terms and conditions and under rates established by the Commission for service under the existing Contract will allow Chugach and Seward to conclude negotiations. o Not allowing continued service by Chugach to Seward would place a severe hardship on Seward's consumers by denying them access to an economical and reliable source of power from Chugach by causing them to operate diesel generation at far greater cost in fuel, maintenance and labor costs than the Chugach-supplied service. Under the circumstances this would be an unjustifiable cost to Seward consumers. o Not allowing continued service by Chugach to Seward would cause Chugach to lose a source of revenues on which its last approved rates as well as its budgets have been premised. Ultimately this results in harm to all of Chugach's member consumers. Long-term solution Sufficiently in advance of the end of the four-month extension and no later than Monday, April 17, 2006 Chugach will bring a long-term arrangement for sales to Seward to the Commission for its approval. If Chugach and Seward reach agreement, the parties ~1 can prepare a filing with the Commission requesting its approv.al of the Contract. If the parties. are not able to reach agreement, the additional four months will allow Chugach to . prepare and request a tariffed rate for service to Seward without Seward's concurrence. Such a proposal for tariffed service (as opposed to a negotiated Special Contract) may propose rates based on fully allocated costs and/or other. alternate rates, terms and conditions of service. . - __----Chnellr.h anticipateS-th.atJLwilLfi1e either lIn ~greed Special Contract or a separate request for approval of a tariff for service ~o Seward no later than April 17, 2006 to allow for the 45 day review period established in AS 42.05.411 before the four month effective period under the temporary tariff has passed. This will allow the Commission the required notice periods and allow time for the Commission to consider requests for interim implementation of the requested relief pending final ;review of the filing requesting more permanent arrangements for sales to Seward. Very Truly Yours, . CHUGACH ELEClRIC ASSOCIATION, INC. William R. Stewart Interim Chief Executive Officer 62 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING ESTABLISHING THE SEWARD COMMUNITY LffiRARY/MUSEUM AGENCY FUND FOR THE PURPOSE OF ACCOUNTING FOR DONATIONS TO THE PROJECT WHEREAS, the City Council of the City of Seward passed a resolution funding the development of a Design Concept for a combined Seward Community Library and Museum in 2003; and WHEREAS, the estimated cost for design, construction and completion of the Seward Community Library Museum is $17.5 million; and WHEREAS, the City Council of the City of Seward directed the City Manager to create a Steering Committee to guide the project development and the fundraising efforts; and WHEREAS, the Seward Community Library Museum Steering Committee and its designees will be soliciting funds for the design, construction and completion of the facility until construction is complete or December 31, 2016; and WHEREAS, it is the wish of the Seward Community Library Museum Steering Committee that the funds raised in these efforts be administered and held safe by the City of Seward Finance Department; and WHEREAS, donations contributed to the fund will be used for the construction of the proposed Library/Museum Facility, with said donations to be handled as directed by the donors at the time of donation, if said facility is not constructed by December 31, 2016, as follows: 1) donations will be refurided directly to the donor without accrued interest, if said facility is not constructed by December 31, 2016, 2) donations will be contributed to the Seward Community Library without accrued interest and held in reserve for future library and museum capital projects as directed by the Seward City Council, or 3) if no other direction is given by the donor, donations will revert to the City's undesignated fund balance account in the General Fund, without further reservation or designation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council of the City of Seward authorizes the City of Seward to establish and administer the Seward Community Library Museum Agency Fund. Section 2. Donations to this Agency Fund will be handled as directed by the donors at the G~ CITY OF SEWARD, ALASKA RESOLUTION 2006-011 time of donation, if said facility is not constructed by December 31, 2016, in the following manner: 1) donations will be refunded directly to the donor without accrued interest, if said facility is not constructed by December 31, 2016,2) donations will be contributed to the Seward Community Library without accrued interest and held in reserve for future library and museum capital projects as directed by the Seward City Council, or 3) if no other direction is given by the donor, donations will revert to the City's undesignated fund balance account in the General Fund, without further reservation or designation. Section 3. This resolution will take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk (City Seal) i;;~ Council Agenda Statement Meeting Date: January 23,2006 Clark Corbridge, City Manager {j~ Patricia Linville, Library Director rr- To: From: Agenda Item: Resolution to establish Seward Community Library Museum Agency Fund BACKGROUND & JUSTIFICATION: The intent of this resolution is to establish an agency fund named the Seward Community Library Museum Agency Fund within the City of Seward Finance Department to accept and safeguard the money raised for the project. In July 2003, the City of Seward passed a resolution funding the development of a Design Concept for a combined Seward Community Library and Museum. The new Seward Community Library and Museum will be a 39,618 square foot, ADA accessible, multi-purpose facility designed to allow both organizations to better meet current needs for effective program and service delivery, and to accommodate anticipated growth. Housing these two organizations in one facility enables more efficient access and operation for the citizens of Seward and visitors. Estimated Project Cost The Seward Community LibrarylMuseum project is estimated to cost $17.5 million. Construction cost $13,000,000 (+3% per year after 2005) Administration and Design $ 1,500,000 Furnishings and Equipment $ 1,000,000 Construction Management $ 400,000 Contingency $ 1,600,000 The Council has directed the city manager to form a Steering Committee to guide the progress of the project as well as fundraising activities. Seward Community Library Museum Steering Committee and its designees will be soliciting funds for the design, construction and completion of the facility until the project is complete or December 31,2016. It is assumed these funds will be generated from within the local Seward community, from municipal, state and federal grant programs, and from corporations and foundations both in state and nationwide. Donations to this Agency Fund will be handled as directed by the donors at the time of donation, if said facility is not constructed by December 31, 2016, in the following manner: 1) Donations will be refunded directly to the donor without accrued interest, if said facility is not constructed by December 31, 2016, 2) Donations will be contributed to the Seward Community Library without accrued interest and held in reserve for future library and museum capital projects as directed by the Seward City Council, or 65 3) If no other direction is given by the donor; donations will revert to the City's undesignated fund balance account in the General Fund, without further reservation or designation. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The Seward Community Library Museum Agency Fund will be administered by the City of8eward Finance Department for the duration of the fundraising effort. It is estimated that effort will continue until the required amount is raised or until December 31,2016. RECOMMENDATION: The Seward City Council approve establishing the Seward Community Library Museum Agency Fund within the City of Seward Finance Department. ~& Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE CITY OF SEWARD'S CALENDAR YEAR 2006 REVISED FEDERAL LEGISLATIVE PRIORITIES WHEREAS, annually the City compiles a list of projects or issues that are identified as top federal 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 ofthe 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 Federal legislative session: PORT AND HARBOR I. $6.5 million for inner-harbor improvementsff -dock buIkheadffravelift dock and 3-stage dock: 2. $2.8 million for SMIC ship repair infrastructure improvements 3. $9 million for dock! breakwater SMIC 4. $4 million for SMC dock design ROADS AND STREETS 1. $2.25 million for street repair PUBLIC FACILITIES I. $ 19.5 million for Mary Lowell Center 2. $18 million for Long Term Care Facility 3. Lowell Creek Tunnel- Transfer of ownership.to Army Corps of Engineers 61 CITY OF SEWARD, ALASKA RESOLUTION 2006-012 INFRASTRUCTURE 1. $4 millionJor replacement of two electric generators Section 2. This resolution shall take effect immediately upon its adoption,'." PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. mE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor itiS COUNCIL AGENDA STATEMENT Agenda Item: Calendar Year 2006 Federal Legislative Priorities Meeting Date: January 23, 2006 Clark Corbridge, City Manager CfJ 1- If-O" From: BACKGROUND & JUSTIFICATION: Annually the City compiles a list of projects or issues that we identify as our top legislative priorities. The list of projects is compiled into a package that is then distributed to the Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative package), and our lobbyist. This prioritized list validates the projects and greatly focuses the efforts of the Administration in our lobbying effort as we seek funding or other resolution through Federal government. The following list, which is submitted to the City Council for review and approval. PORT AND HARBOR 1. $ 6.5 million for inter-harbor improvements 2. $2.8 million for SMIC ship repair infrastructure improvements 3. $.q million for dock! breakwater SMIC 4. $4 million for SMC dock design ROADS AND STREETS 1. $2.25 million for street repair PUBLIC FACILITIES 1. $19.5 million for Mary Lowell Center 2. $18 million for Long Term Care Facility 3. Lowell Creek Tunnel- Transfer of ownership to Army Corps of Engineers INFRASTRUCTURE 1. $4 million for replacement of two electric generators 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. 69 FISCAL NOTE: The fiscal impact of this resolution is our state legislative lobbying effort. The contract for our state lobbyist is budgeted for as well as travel by the City Administration. III -r:--.JA","lo./U;"'" ApprovedbyFmmceDe~em ~---~~o' RECOMMENDATION: \~. F~\ Council approve Resolution 2006- approving the City of Seward's Calendar Year 2006 Legislative Priorities. . 10 2006 City of Seward FEDERAL Legislative Priorities Project Title: INNER-HARBOR IMPROVEMENTS/T -DOCK BULKHEADITRA VELlFT DOCK/3-STAGE DOCK #1 Port and Harbor $6.5 million To be determined Priority: Funding Needed: Funding Source: Project Description! Justification: The East Harbor Expansion Project began in January Army Corp. of Engineers are currently in the proce Harbor eastward to the Coal Dock. The project' completed in the spring of2006 at a cost of$ ock for the new 50 ton Travelift. The Sewar estimat plan of a lmprovem north side 0 facilities, office I evelopment guide completed in June 2003, 'red in the small boat harbor to cost $36 million. This south harbor and east harbor area, replacement in the isting north and south barbors, rehabilitation . T-dock and I-Dock, new bulk heads and Travelift pit to the stage dock, maintenance area, parking areas, restroom e completed in phases as funding becomes available. The first phase ofi harbor floats at an estimated cost of$7.8 million is currently being installed in 20 5-06. The first phase includes new floats in the expanded harbor and some extensions of existing floats. The City increased moorage rates 13% to secure 1.5 million in revenue bonds for Phase I. In 2006, the City increased moorage rates 10% and passenger fees in order to secure an additional $4.5 million in revenue bonds for Phase II. The City is seeking an additional $6.5 million to assist in the completion of Phase ill, 880 foot Z-float and completion of the T -dock, bulkhead, and Travelift dock proj eets. , '. 71 2006 City of Seward Federal Legislative Priorities Project Description! Justification: SMIC SHIP REPAIR INFRASTRUCfURE IMPROVEMENTS #2 Port and Harbor $2.8 million To be determined Project Title: Priority: Funding Needed: Funding Source: ilt in 1983. The t in length. vements half of the way and the United States d built . capable of lifting the Alaska erous USCG Cutters in Alaska. Over the , utilized to complete both routine Marine Highway, U.S. Coast Guard al response and escort vessels in Valdez. hipyard only reallied approximately 35% of its FrE's on an annual basis. Completion of the e c ity of the shipyard to meet its designed potential, ill mcrease employment. . l'ffl;j)-,. ., ...; 2006 City of Seward Federal Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: DOCK BASIN BREAKWATER AT SMIC #3 Port and Harbor $9 million To be determined Project Description! Justification: he Seward Marine consisting of a 80' beam.), a a upland The primary development (Syncrolift, do of C took place in the early y state funds. Unfortunately o doc that lay east/west exposed to ere damage to the pilinglbumper system marine traffic in Resurrection Bay, of the shipyard facility in Seward has ent (USCG, NOAA, Dept. of Interior), as RVS - Oil Spill Response for the Marine Terminal at , the need to promote safe, usable dockage has the lack of such moorage has proven critical. ept. of Interior, NOAA and commercial operators are the facilities out of concern for safety and the extreme r vessels. The Army Corps of gineers AND City'of Seward are currently negotiating a 2 million 50/50 Feasibility Cost Share Agreement (FCSA) for a design of a breakwall at the North dock and SMIC. Federal funds are being requested for co~truction of the breakwall. State funding is being requested to help fund the cost share portion of the design and to help fund the cost construction and dock repairs. ; . , 73 2006 City of Seward Federal Legislative Priorities If the State of Alaska and the University of Alaska SEWARD MARINE CENTER DOCK DESIGN #4 Port and Harbor $4 million To be determined Project Title: Priority:- Funding Needed: Funding Source: Project Description! Justification: arrival of the Alaska Regional Research Yes Seward complimenting the existing SeaLifei this demand. . understanding the bined with the er located at ,/ ill meet The number one priority of the Nati the R/V Alpha Helix by the Alaska currently under way and construction 0 The Alpha Helix was buil . ward, Alaska It is the oldest vessel in the National ber 0 priority in the national research vessels fleet impro nt of the Alpha Helix. The NSF owns the Alpha Helix and .' s funding the ARRV design and will also fund its constructl ction will occur as part of the national research fl t to a competitive process. Any institution with an submit a bid to operate it. The University of Alaska has 0 its being located in the vessel's operating region and' operating research vessels in this region. To successfu . process, however, the facilities in Seward must be upgraded. e Center concept plan outlines improvements needed. The most critical it weather dock which must be available when the ARRV arrives. Therefor, lion is required to design and engineer the dock in order that construction can fol to have the facility in place as part of the RFP process. Without the facility an opportunity will be lost to the State of Alaska as well as the University of Alaska 14 2006 City of Seward Federal Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: STREET REPAIR #1 Roads and Streets $2.25 million To be determined Project Descriptionl Justification: The project would resurface portions of the 25 mile 0 City limits. Presently, the driving surfaces of the deteriorated to a point that repaving is the only heaves and failure of shoulders has made roa City's budget for maintenance and repair of road 2005 budget for maintenance and repair of roads is maintenance costs associated with City's attempt the City of Seward. that lie within the City limits have ot holes, frost stIy. The . lion elp repave road surfaces, age systems which will help . " 75 2006 City of Seward Federal Legislative Priorities waterfront in downtown Seward. The new fa . saving capital and operational costs for all p .,_ much needed office and visitor service upgr space, helping to respond to the increase in the num will receive better, more efficient"o stop shopping" MARY LOWELL CENTER, SEWARD, ALASKA #1 Public Facilities $19.5 million for Gross Construction funding request National Park Service Line ltemnstruction Project Title: Priority: Funding Needed: Funding Source: Project Description! Justification: The National Park Service (NPS), the U.S. Forest Se ~ building design for a developed and a formal ations for the facility were a p rship with the COS's Seward . s Committee was to fmd a site for the 's downtown waterfront district. The SFS and other public agencies, will be civic improvements. By integrating the e site selection process for the Center, the proposed located to strengthen the vitality of downtown be 'instrumental in adding jobs, visitor and tourist investment opportunities to Seward's downtown At a series of pub ngs in Seward in May and July of 2003 until present. January 2006, a planning '.; design consultant of the NPS, The Portico Group, met with government representatives, members of the Waterfront Committee, local property owners and business people, and other stakeholders. At these meetings, the group assessed the downtown waterfront district, analyzed its features and constraints, and evaluated those properties available for lease, sale or development to determine their fit with the program for the Center and other civic facilities. Three planning concepts were created during the course of the weeklong May 2003 meetings. The project partners are still presently engaged in meetings. These concepts were discussed and critiqued by the stake holders and the public. A consensus emerged for the "Town Center" concept. This concept proposed multiple public facilities as the focal point of the waterfront district, clustered around a public open space at the intersection of Fourth Avenue, Washington 76 2006 City of Seward Federal Legislative Priorities Street and Railway A venue. A visitor center, conference facility .and agency 'offices are the anchor for the plaza. A separate future project consisting of the city's library and historical museum complete the perimeter of this public open space. ,for the NPS and the construct the facilities ill be paid by NPS, The recommended purchase, development and operational str USFS to purchase the necessary properties outright (fee ti with congressionally appropriated funds. Operational .' USFS, and COS based on their respective use of spac The cost of construction (including planning, currently $19.5 million (FY04 dollars). Lanq. million) has been used to acquire properties ide been made available for consideration by landowne All involved agencies support the co promotes better public service and 0 shared space. uil,ding as the partnership . for consolidated and 77 2006 City of Seward Federal Legislative Priorities Project Descriptionl Justification: LONG-TERM CARE FACILITY #2 Public Facilities $18 million for construction To be determined Project Title: Priority: Funding Needed: Funding Source: Wesley opened originally was built in 1970 wi requires substanti For example, th impossible to correct inadequac Alaska loca' repl e urn. A substantial expansion existin . s a high risk environment that ces to monitor, repair and work around. number of code violations that are d building. . Other problems included ce of care systems resulting in the State of lution be found This resulted in the current co- ct with Providence including an agreement to The hospital heavily the consistent cash flow from the nursing home to maintain the ancillary se f,. hospital (e.g. accounting, laundry, building maintenance, administration) w .'P to reduce redundant services at both facilities, generating substantial cost sav. s. Co-location is the only mechanism under which we can maintain a financially viable acute care hospital in Seward. so the two facilities are critically intertwined. The concept design and preliminary program for the replacement of Wesley provides for 40 nursing home residents in a 33,872 square foot building at a construction cost of $275 to $310 per square foot. 78 2006 City of Seward Federal Legislative Priorities Project Title: . Priority: Funding Needed: LOWELL CREEK DIVERSON TUNNEL #3 Public Facilities Transfer of Ownership of Lowell Creek Diversion Tunnel to U.S. Army Corps ofE . eers U.S. Army Corps of Enginee Funding Source: Project Description! Justification: Lowell Creek Diversion Tunnel drains Lowell Cr Bear Mountain to Resurrection Bay.. The tu grouted and lined with rails on the bottom . rocks and debris which flow through the tunDel. and erosion requiring periodic rebuilding and repair streams through rock and is "m heavy ive damage lution to the problem of t flood event raised the , the Army Corp to assume responsibility for the epair. the Lowell Creek Tunnel and to conduct a study to me ods of flood diversion in Lowell Canyon are feasible. ,. I 79 2006 City of Seward Federal Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: REPLACEMENT OF TWO ELECTRIC GENERATORS #1 Infrastructnre $4 million To be determined Project Description! Justification: The City Of Seward is seeking funding for the emergen generators, at a cost of $2 million each. so Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-013 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 WHEREAS, annually the City compiles a list of projects or issues that 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 RESOL YED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. This list of legislative projects is hereby declared to be the official legislative priority list for the City of Seward for the 2006 State legislative session: PORT ANIfHARBOR 1. $6.5 million for inner-harbor improvementslT -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. $18 million for Long Term Care Facility 2. $10 million for Jesse Lee Home leadership school 81 CITY OF SEWARD, ALASKA RESOLUTION 2006-013 INFRASTRUCTURE 1. $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 Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) 82 COUNCIL AGENDA STATEMENT Meeting Date: January 23,2006 Clark Corbridge, City Manager {JJL- l-/tt - ~(, Calendar Year 2006 State Legislative Priorities From: Agenda Item: BACKGROUND & JUSTIFICATION: Annually the City compiles a list of projects or issues that we identify as our top legislative priorities. The list of projects is compiled into a package that is then distributed to the Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative package), and our lobbyist. This prioritized list validates the projects and greatly focuses the efforts of the Administration in our lobbying effort as we seek funding or other resolution through State government. The following list, which is submitted to the City Council for review and approval. PORT AND HARBOR 1. $6.5 million for inner-harbor improvementsfT -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. $18 million for Long Term Care Facility 2. $10 million for Jesse Lee Home leadership school INFRASTRUCTURE 1. $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 83 e. $225,000 for Warehouse 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 fiscal impact of this resolution is our state legislative lobbying effort. The contract for our state lobbyist is budgeted for as well as travel by the City Administration. . Approved by Finance Department ,~..f AI'~ RECOMMENDATION: Council approve Resolution 2006-013, approving the City of Seward's Calendar Year 2006 State Legislative Priorities. a4 2006 City of Seward STATE Legislative Priorities Project Title: INNER-HARBOR IMPROVEMENTSff -DOCK BULKHEADffRA VELIFf DOCK/3-ST AGE DOCK #1 Port and Harbor $6.S million To be determined Priority: Funding Needed: Funding Source: Project Description! Justification: The East Harbor Expansion Project began in January 2004 Anny Corp. of Engineers are currently in the process of Harbor eastward to the Coal Dock. The project is un completed in the spring of2006 at a cost of$10 anning and d opment guide completed in June 2003, . all boat harbor to cost $36 million. This for harbor and east harbor area, replacement existing north and south harbors, rehabilitation d I-Dock, new bulk heads and Travelift pit to the sta ock, maintenance area, parking areas, restroom e completed in phases as funding becomes available. The first phase 0 or floats at an estimated cost of $7.8 million is currently being installed in 2 . The first phase includes new floats in the expanded harbor and some extension f existing floats. The City increased moorage rates 13% to secure 1.5 million in revenue bonds for Phase I. In 2006, the City increased moorage rates 10% and passenger fees in order to secure an additional $4.5 million in revenue bonds for Phase II. The City is seeking an additional $6.5 million to assist in the completion of Phase m, 880 foot Z-float and completion of the T-dock, bulkhead, and Travelift dock projects. 85 2006 City of Seward STATE Legislative Priorities Project Description! Justification: SMIC SHIP REP AlR INFRASTRUCTURE IMPROVEMENTS #2 Port and Harbor 2.8 million To be determined Project Title: Priority: Funding Needed: Funding Source: The Seward Marine Industrial Center Syncrolift facility Syncrolift has the capacity of lifting a 5,000 ton yes Although the facility was originally built in 1983 were constructed at that time. A minimal rail original design, was constructed in 1988. A 0 room facility was constructed in 2002. In order to increat;e the number of size of vessel that can be wor million is being requested to expand fer pit and 86 2006 City of Seward STATE Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: UPGRADE STREETS AND SIDEWALKS #1 Roads and Streets 2.25 million To be determined Project Description! Justification: The City is requesting funding in the surfaces, reconstruct and/or add new sid will help the road surfaces last longer. 87 lp repave road ainage systems which 2006 City of Seward STATE Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: MILE 18 TO 25.5 SEWARD IDGHW AY IMPROVEMENTS #2 Roads and Streets $38 million Statewide Transportation improvement Plan This project includes the reconstruction of the Seward hi River to Mile 25.5 at Trail River. The project includes grade separated railroad crossing at Crown Point, r Ptarmigan Creek, Falls Creek and Trail River; re lanes. One million dollars,is in FY05 for righ has become a safety issue resulting in a num er priority in the State's network of most significant Project DescriptionJ Justification: 88 2006 City of Seward STATE Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: MILE 25.S TO 36 SEWARD HIGHWAY IMPROVEMENTS #3 Roads and Streets 20.6 million Statewide Transportation Improvement Plan Project Descriptionl Justification: This project includes the reconstruction of the Seward Hi River to Mile 36 at the Sterling Wye. The project will r includes resurfacing, safety improvements and pass' $450,000 in FY06 for right of way. This project safety concern and has resulted in fatalities an state's network of most significant roads. :' 1'- 89 2006 City of Seward STATE Legislative Priorities ~roject Title: Priority: Funding Needed: Funding Source: LONG-TERM CARE FACILITY #1 Pnblic Facilities $18 million for construction To be determined Project Description! Justification: lies heavil the nsistent cash flow from the nursing home to maintain 'ces ofth spital (e.g. accounting, laundry, building maintenance, administration . ch hel reduce redundant services at both facilities, generating substantial cost sa o-location is the only mechanism under which we can maintain a financial able acute care hospital in Seward so the two facilities are critically intertwin . The concept design and preliminary program for the replacement of Wesley provides for 40 nursing home residents in a 33,872 square food building at a construction cost of $275 to $310 per square foot. 90 2006 City of Seward STATE Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: JESSE LEE HOME LEADERSHIP SCHOOL #2 Public Facilities $10 million Undetermined this SI Alaska City resour infrastructure. ed for children of the territory of . g in the mid-l 920s. The Home was a c at a time when influenza and 011 on remote, Native communities. ed alumni. The most famous of these was a r Ident of the Home. Benny Benson, as a n design the Alaskan flag. The unique design orth Star. The first Alaska flag was raised on a 0 uly 9, 1927. This date is still commemorated as 'dent that this site is an extremely important State and , the City of Seward owns the property and existing Project Description! Justification: The Jesse Lee orne suffered extensive damage from the 1964 Good Friday Earthquake and was abandoned. Since then, the property has suffered further neglect and deterioration. The Jesse Lee Home is in dire need of renovation if it is to continue to represent a part of Alaska's heritage and become, once again, a distinguished state landmark. It has been acknowledged that the deterioration of the building is to the point that if restoration does not occur soon this resource will be lost forever. In 2000, the City of Seward identified the Jesse Lee Home's restoration needs were beyond the City's capacity and requested State support. In 2001, the State 91 legislature passed House Bill 0096C, recognizing the Jesse Lee Home as a site of. historic significance for all people of the State of Alaska and directed the Department of Natural Resources to determine the costs and procedures necessary . for its preservation, development, and management. In 2003, the Department of Natural Resources completed the Jesse Lee Home Historic Structure Report, .detailing the means necessary to restore the structure. Today in January of 2006, the City of Seward continues to seek state support for this unique site. In May 2005 a group of citizens from across the State of Alaska met to pursue the preservation of the Jesse Lee Home. This group has since met n several occasions to discuss the best use for the Jesse Lee Home. Individuals laska Children's Services, the Alaska Department of Education, the Al epartment of Natural Resources, COO, Chugach Alaska Corporation, the ard, ECI / Hyer, Inc., House of Representative Seaton's office, the Rasmuson Foundation as well as other concerned individua a resolution of . nal facility. In January 2006, the e Home as one of the top ten (10) te would benefit from this unique educational ame 0 e, the Jesse Lee Home will be lost as a historic ions. House Bill 0096-C provides language for the State esources to go back to the legislature and appropriate Lee Home, develop and manage it 92 2006 City of Seward State Legislative Priorities Project Title: Priority: Funding Needed: Funding Source: REPLACEMENT OF TWO ELECTRIC GENERATORS #1 Infrastructure $4 million To be determined Project Description! Justification: The City Of Seward is seeking funding for the emergen generators, at a cost of $2 million each. 93 2006 City of Seward State Legislative Priorities Project Description! Justification: WATER STORAGE TANK #2 Infrastructure $2 million To be determined Project Title: Priority: Funding Needed: Funding Source: 94 2006 City of Seward State Legislative Priorities Project Descriptionl Justification: LIFE SAFETY FACILITY REPAIR #3 Infrastructure $1 Million To be determined Project Title: Priority: Funding Needed: Funding Source: 95 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE CITY OF SEWARD'S CALENDAR YEAR 2006 REVISED CITY PRIORITIES WHEREAS, annually the City compiles a list of projects or issues that are identified as top city priorities; and WHEREAS, the list ofprojects is compiled and distributed to grant fenders for city priority projects and the City of Seward's lobbyists as needed; and WHEREAS, this prioritized list validates the projects and greatly focuses the efforts of the administration in our grant and 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 of city projects is hereby declared to be the official city priority list for the City of Seward for the 2006: PORT AND HARBOR 1. $2.5 million for T-Dock & Bulkhead & travel-lift dock 2. $9 million for Dock! breakwaterl SMIC 3. $4 million for SMC dock design ROADS AND STREETS 1. $325,000 for emergency access road/land acquisition 2. $14 million for Lowell Point Road PUBLIC FACILITIES 1. $17 million for Libraryl museum 2. $10 million for the Jesse Lee Home 3. $3 million for A VTEC support 4. $8 million for public safety building and jail 5. $2 million for electric shop 6. $900,000 for satellite fire station in Forest Park 7. $25 million for Spring Creek expansion . 96 CITY OF SEWARD, ALASKA RESOLUTION 2006-014 INFRASTRUCTURE 1. $229,000 for hospital capital equipment 2. $300,000 for replacement of fire pumper 1. $250,000 for replacement of pressure station for water system 2. $850,000 for platform aerial fire truck 3. $50,000 for fire station vent 4. $600,000 for wastewater infrastructure rehabilitation 3. $1 million for rail belt energy STUDIES AND PLANS 1. $150,000 beach erosion plan 2. $80,000 storm water master plan 3. $80,000 water master plan Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of January, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) 97 COUNCIL AGENDA STATEMENT Agenda Item: January 23,2006 Clark Corbridge, City Manager (] Jt- 1- J'i - fJt Calendar Year 2006 City Priorities Meeting Date: From: BACKGROUND & JUSTIFICATION: Annually the City compiles a list of projects or issues that we identify as our top State and Federal legislative priorities. The list of projects is compiled into a package that is then distributed to the Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative package), and our lobbyist. This prioritized list validates the projects and greatly focuses the efforts of the Administration in our lobbying effort as we seek funding or other resolution through State government. This year we have also compiled a list of projects that are in the planning phase and/or may qualify for grants. In order to quality for most grants, the City must include these projects on the City priority list. Many of these projects are also on the State and Federal priority list. The items excluded on the State and Federal priority list will, most likely, be added as the planning phase develops and broadens. The following list, which is submitted to the City Council for review and approval. PORT AND HARBOR 1. $2.5 million for T-Dock & Bulkhead & travel-lift dock 2. $9 million for Dock! breakwater! SMIC 3. $4 million for SMC dock design ROADS AND STREETS 1. $325,000 for emergency access road/ land acquisition 2. $14 million for Lowell Point Road PUBLIC FACILITIES 1. $17 million for Library! museum 2. $10 million for the Jesse Lee Home 3. $3 million for A VTEC support 4. $8 million for public safety building and jail 5. $2 million for electric shop 6. $900,000 for satellite fire station in Forest Park 7. $25 million for Spring Creek expansion . 98 INFRASTRUCTURE 1. $229,000 for hospital capital equipment 2. $300,000 for replacement of fire pumper 1. $250,000 for replacement of pressure station for water system 2. $850,000 for platfonn aerial fire truck 3. $50,000 for fire station vent 4. $600,000 for wastewater infrastructure rehabilitation 3. $1 million for rail belt energy STUDIES AND PLANS 1. $150,000 beach erosion plan 2. $80,000 stonn water master plan 3. $80,000 water master plan 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 fiscal impact of this resolution is our grant efforts and the necessary City match for grants available. . Approved by Finance Department RECOMMENDATioN: IL\ Council approve Resolution 2006- approving the City of Seward's Calendar Year 2006 City Priorities. ~~ MEMO Meeting Date: January 23,2006 To: Mayor, City Council Agenda Item: Robert Valdatta /;;\ Jean Lewis, City Cle~ ALCOHOL AND TOBACCO TAX From: Thru BACKGROUND & JUSTIFICATION: Councilmember Valdatta wrote a letter asking that a discussion item be put on the agenda to possibly implement an alcohol and tobacco tax in the future. Finance Director Kristin Erchinger has attached a few excerpts from the bigger municipalities on similar taxes that they impose, and an emaillist that shows population and dollar amounts from a 2004 "Alaska Taxable" publication. INTENT: To determine if this is of importance and the dollar amount significant enough to the city council to have the Administration pursue, either now or in the future. FISCAL NOTE: Finance Director unavailable for comment. Approved by Finance Department: RECOMMENDATION: Discuss item to determine if this is of importance and the dollar amount significant enough to the city council to have the Administration pursue, either now or in the future. a lOO . ~6 U~'vaz# ~o /2-67 ~~~ -9y~~q~ / ,C;07- 22<;'- ~ Ofe-~ ~ . S e tJ-I~ IJfL. - ~9~c:' t/ - 9 ^~/c-o~ - ~J~7!'&&'-I<> Co~ /J~fl~ 6!:f~~ . . I p(laSS Pv--HO~\.)..o ~ A- ~~&.;' Uv M~Jb ~~ ~oif fll- ~#bfiOO if ~ ftfv~~~~~ 4///nvL' ~~ 71:5 . $' ~ SfbP- ;JbocA~ ~ fl-"'S fJ ~ #--d- 'i~ r olaos' ~ ~ E/ctJ1~ ~ ~ 'f-d 2P<4 ~ - . -9 +:-. c;0~ 0u-- ~ ~ &:!;t:5 t9+ -1-D ~ '--/b AfIJ';1'h x:~.~u4- a..>>r ~/:::- ~ . -Jjg~ ;r-r-1- L/fi'I --r~ - - <<--- OJ6~ 101 Page 1 of 1 . Jean Lewis From: Kris Erchinger Sent: Monday, Janual)t 16, 2006 9:45 PM To: Clark Corbridge Cc: 'Kirsten Vesel'; 'derk@cityofseward.net' Subject: Alcohol and Tobacco tax Attachments: AlcohoL Tobacco_ Tax_Excerpts.doc Hello all, Just a brief summary of what I've found so far relative to alcohol and tobacco tax. The following municipalities have a tobacco and/or alcohol tax (as of 2004, the most recent "Alaska Taxable" publication): Anchorage (population 273,565) -15% tobacco tax = $4.7 million Bethel (population 5,886) - 5% alcohol tax = $57,003 Dillingham (population 2,390)- 10% alcohol tax = $197,039 Fairbanks (population 29,002) - 5% alcohol tax; 8% tobacco tax = $1.1 million and $799,567 Juneau (population 31,246) - 3% alcohol tax; $0.30/pack tobacco tax = $660,000 and $311,737 Kotzebue (population 3,070) - 6% alcohol tax = $21,064 Unalakleet (population 741) - 5% alcohol tax = $5,527 Whittier (population 173) - 3% alcohol tax = $6,450 I have attached excerpts from Municipal Codes, where many tobacco ordinances address tax on the wholesale distribution (as opposed to retail sale) of tobacco. I have only looked at those municipalities on munLcom (Anchorage, Fairbanks, Juneau). The others will take a little more time. -Kris . . 102 1/171?()()h . MUNICIPALITY OF ANCHORAGE - TOBACCO TAX 12.40.010 Tax on cigarettes. A. The municipality hereby levies an excise tax of 65 mills, adjusted annually as provided in subsection B of this section, on each cigarette brought into the municipality after September 30, 2004. Cigarettes upon which the tax is imposed are not again subject to the tax when acquired by another person. B. The annual Consumer Price Index adjustment shall be based on the August release date of the semiannual report for the municipality from the U.S. Department of Labor statistics and determined to be the percent change to the current year from the average of the first and second half of the prior year, and will be effective January 1 of each year following the August release date. The first such adjustment date shall be January 1, 1992. (AO No. 89-89(S-I); AO No. 89-142(S); AO No. 90-137(8-1); AO No. 94-182, ~ 4, 7-1- 95; AONo. 95-77(S), ~ 2, 7-1-95; AONo. 95-111, ~ 1,4-25-95; AONo. 2004-131, ~ 1, 9-21-04) 12.40.020 Tax on other tobacco products. An excise tax of 45 percent of the wholesale price is levied on tobacco products; other than cigarettes, brought into the municipality. The tax is levied effective October 1, 2004. Tobacco products upon which this tax is imposed are not again subject to this tax when acquired by another person. (AO No. 89-89(S-I); AO No. 89-142(8); AO No. 90-137(S-I); AO No. 94-182, ~ 4, 7-1- 95; AO No. 95-77(8), ~ 3, 7-1-95; AO No. 95-111, ~ 1,4-25-95; AO No. 2004-131, ~ 2, 9-21-04) 12.40.021 Intent and purpose of chapter and taxpayer. A. It is the intent and purpose of this chapter to collect the tax from the person who: 1. First acquires the cigarettes or other tobacco products within the municipality; 2. Brings, or causes cigarettes or other tobacco products to be brought into the municipality; 3. Makes, manufactures, or fabricates cigarettes or other tobacco products in the municipality; or 4. Ships or transports cigarettes or other tobacco products Into the municipality. Notwithstanding anything to the contrary contained in this chapter, the taxpayer shall be those persons described in this section and no others. (AO No. 95-77(S), ~ 4,4-25-95) c 12.40.025 Exemptions. A. Military. Cigarettes and other tobacco products brought into or acquired in the municipality by a military exchange, commissary, or ship's store operated by one of the uniformed services of the United States as defined in 5 USC section 2101 are exempt from tax under this chapter if the cigarettes and other tobacco products are sold to and for the sole use of authorized personnel according to current military regulations. 1. Cigarettes and other tobacco products brought into or acquired in the municipality by a military exchange, commissary, or ship store and sold to, or for the use of unauthorized personnel are not exempt from the tax under this chapter. 103 2. Cigarettes or other tobacco products brought into or acquired in the municipality by an independent contractor and sold to consumers within the military installations are not exempt from the tax under this chapter. 3. A person claiming an exemption under this section for the sale. of cigarettes or other tobacco . FAIRBANKS TOBACCO TAX ARTICLE V. TOBACCO PRODUCTS DISTRIBUTION AND EXCISE TAX. *State law references: Tobacco products excise tax, AS 43.50.300-43.50.390. Sec. 74-151. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Direct-buying retailer means a person who is engaged in the sale of tobacco products at retail in this city, and who brings or causes to be brought tobacco products into the city. Distributor means a person who brings tobacco products, or has tobacco products brought, into the city, and who sells or distributes tobacco products to others for resale in the city. Person includes an individual, company, partnership, joint venture, joint agreement, asst!lciation, mutual or otherwise, corporation, estate, trust, business trust, receiver, trustee, syndicate, a direct buying retailer or distributor. Retailer means a person in the city who is engaged in the business of selling tobacco products at retail. Sale includes a sale, barter, exchange and every other manner of transferring the ownership of tobacco products. Tobacco product means: Tobacco product means: (1) A cigarette, which is a roll for smoking of any size or shape, made wholly or partly of tobacco, whether the tobacco is flavored, adulterated or mixed with another ingredient, if the wrapper or cover of the roll is made of paper or a material other than tobacco; (2) A cigar; (3) A cheroot; (4) A stogie; (5) A perique; (6) Snuff and snuff flour; (7) Smoking tobacco, including granulated, plug-out, crimp-out, ready-rubbed, and any form of tobacco suitable for smoking in a pipe or cigarette; or (8) Chewing tobacco, including cavendish, twist, plug, scrap, and tobacco suitable for chewing. Wholesale price means the established price for which a distributor sells a tobacco product to a retailer. (Code 1960, ~ 5.507) .. , 104 . Cross references: Definitions generally, ~ 1-2. State law references: Definitions, AS 43.50.170, 43.50.390. Sec. 74-152. Imposition of excise tax on tobacco Sec. 74-152. Imposition of excise tax on tobacco products. (a) The city hereby levies an excise tax on the distribution of tobacco products brought into the city, measured at the rate of eight percent times the wholesale price of such tobacco products. (b) It is the intent and purpose of this chapter to provide for the collection of the excise tax from the person who brings or causes to be brought tobacco products into the city. The excise tax is levied when: (1) A person brings, or causes to be brought, tobacco products into the city from outside the city for sale; or (2) A person ships or transports cigarettes or tobacco products to a retailer in the city for sale by a retailer. (Code 1960, ~ 5.501; Ord. No. 5605, ~ 1, 6-1-2005) Sec. 74-152.1. Exemptions. The tax imposed under this chapter does not apply to: (1) Tobacco products brought into the city by an exchange, commissary, or ship's stores operated by one of the uniformed services of the United States as defined in ~ 5 USC 2101 if the tobacco products are sold to and for the sole use of authorized personnel according to current military regulations. (2) Tobacco products if the United States Constitution or other federal or state laws prohibit the levying of the tax on the product by the city. (3) Tobacco products brought into the city for sale outside the city. (Ord. No. 5605, ~ 2, 6-1-2005) FAIRBANKS ALCOHOL TAX: Sec. 74-67. Alcoholic beverage sales tax levy. There is levied within the corporate limits of the city a tax equal to five percent of the sales price upon all retail sales of alcoholic beverages made within the corporate limits of the city. (Code 1960, ~ 5.201; Ord. No. 5102, ~ 1,4-17-1993) ~ JUNEAU TOBACCO TAX 69.08.020 Imposition of excise tax on tobacco products. (a) The City and Borough hereby levies an excise tax of $0.30 per pack of cigarettes brought into the City and Borough after December 31,2003. . (b) The City and Borough hereby levies an excise tax on other tobacco products at the rate of 12 percent of the wholesale price of tobacco products brought into the City and Borough after December 31, 2003. (c) It is the intent and purpose of this chapter to provide for the collection of the excise tax from the distributor who brings cigarettes or other tobacco prodUcts into the City and . , ' 105 Borough. The excise tax is levied when a distributor brings, or causes to be brought, cigarettes or other tobacco products into the City and Borough from outside the City and Borough for sale. (Serial No. 90-27, ~ 1, 1990; Serial No. 2003-37, ~ 3,8-25-2003) 69.08.030 Exemptions. The tax imposed under this chapter does not apply to: (a) Cigarettes or other tobacco products brought into the City and Borough by an exchange, commissary, or ship's stores operated by one of the uniformed services of the United States as defined in 5 USC 2101. (b) Cigarettes or other tobacco products if the United States Constitution or other federal laws prohibit the levying of the tax on the product by the City and Borough. (c) Cigarettes or other tobacco products brought into the City and Borough for sale outside of the City and Borough. Any distributor who brings cigarettes or other tobacco products into the City and Borough for sale outside of the City and Borough shall be allowed a per pack of cigarettes tax credit or a tax credit based on the wholesale price of the tobacco products. The distributor must maintain sufficient documentation to verify the wholesale ~ . t Ivai) . .--- MEMORANDUM DAlE: January 4, 2006 "~Ot'SfO~ :: "Il::"'f..... ~ ~ ~S;:~ ~iAs"'~ TO: Clark Corbridge, City Manager FROM: KriAin Erchinger, Finance Director RE: Utility accounts receivable write-offs for 2005 Seward City Code Chapter 5.01.040 provides that "the finance director may, on approval of the city manager, cancel any account receivable except bills which may become a lien against property for taxes, but shall report such cancellations to the city council." Pursuant to SCC 5.01.040, I am requesting your approval to write-off the attached utility accounts receivable. The cancellatio.n list includes customers whose mail is undeliverable, have no forwarding address, who we have been unable to serve through small claims court action, whose accounts have been inactive, or who have small account balances which dQ not justify the cost of further collection attempts. The cancellation process is an accounting procedure that~uces the accounts receivable to an amount that is likely to be collected, and results in discontinuing further accrual of interest and late fees on accounts that may never be collected. However, the finance departmentdoes not discontinue collection procedures. Collection efforts are continued, especially if a customer is eventually located. Some customers return to the community and seek to receive City services again. At that time, all past due balances are due prior to reinstating service. If a delinquent customer remains in Alaska, the finance department will seek to attach the customer's Alaska Permanent Fund Dividend. All accounts that we are not able to locate and serve with small claims action will then be pursued through collections procedures. '" If you approve the cancellation of the attached utilities accounts receivable, please sign where indicated and return to me for action and distribution to the Council for their information. If you have any questions, please contact me. Thank you. . J :Jtu~~ Approved for write-off: . Kristin Erchinger, Finance Director dJl ~ J~:>::(){' Approved for write-o : Clark Corbridge, City Manager 1'07 UTILITY ACCOUNTS WRITTEN OFF FOI\ BAD DEBT FISCAL YEAR 2005 AMOUNT DATE ACCOUNT # CUSTOMER DUE OFF ACTION COMNlENTS 120041005 ANDERSON, LEON $527.27 06/1612004 200003504 AUBURRY,MARYSUSAN $84.91 08/11/2004 170022307 BARBER, ERNIE $183.43 12/18/2003 200035915 BENNETT, TAWNIE $274.88 05/1112004 400261903 BERNHARDT, ERINIE $60.14 07/0612004 180028008 BOLAN, LEIF $783.89 05/1112004 No Forward Address 200009013 BOLTON, HEATHER $633.12 07/29/2004 No Forward Address 170009658 BOTELHO, JOANN $477.12 02/1212004 No Forward Address 160083901 BRYANT, VALARIE $635.33 09/14/2004 200043636 BUFFINGTON, MORGAN $55.90 . 01/0412005 No Forward Address . 200043623 CAFFERY, JENNIFER $98.37 04/25/2005 No Forward Address 400274207 CAMPBELL, STEVEN C. $11.93 07/31/2005 150014101 CARTER, RICHARD $330.09 03/0412004 10010018 CUE, GARY $257.28 10/27/2003 200003603 DICK, KARMYN E. $175.87 02/17/2004 09003825M FETTERLY, MICHELLE $373.69 03/0312005 No Forward Address 140076671 GEURIN, JAMES & $100.66 01/1212005 No Forward Address 120041003 GNOINSKY, DUANE $493.43 12/1112003 ... 120041002 HAGER, PATRICK $150.39 09/3012003 <: 12003600V HILLARY, AMBER $236.50 05/11/2004 No Forward Address '"' 020018021 HILLARY, AMBER $519.66 02/03/2004 No Forward Address 170005804 J DOCK FISH CO. $1,713.89 08/03/2004 17000570C J DOCK FISH CO. $1,367.17 08103/2004 16006220A JARNIG, JONATHAN $127.84 1212312004 No Forward Address 400250809 JENSEN, TED & PATTY $129.3:1 08130/2004 . 70028556 JOHNSON, BRIAN $70.82 02125/2005 No Forward Address 18002500C KNAPP, WAYNE $168.71 10/06/2003 21010101L KOSOBUD, DALE & TANYA $580.11 04/13/2004 No Forward Address 170009305 MANASCO, CYNDI $319.44 02/11/2005 . 18002330K MANFRED,BETHANY $255.62 10109/2003 0700371 OF MASSEY, WILLIAM ' $74.25 05/10/2005 No Forward Address 110053704 MELLAND,KATHLEEN $685.16 ' 09/10/2003 No Forward Address 200044805 . NELSON. ARTHUR $342.36 03/2212004 . 170003904 NORTHERN LATITUDES $2,467.83 12/19/2003 No Forward Address 050034001 OLSEN, AMBER $1,000.94 06/11/2004 120044005 PANZER-BOWDEN, THERESA $168.96 05/0312004 200009033 PERFORMANCE AUTO BODY $1,588.18 07/14/2004 No Forward Address 170009659 RAIL DAWG SAUSAGE & BBO $55.47 10105/2004 No Forward Address ... ... .. . .. '- .. UTILITY ACCOUNTS WRITTEN OFF FO~ BAD DEBT FISCAL YEAR 2005 AMOUNT DATE ACCOUNT # CUSTOMER DUE OFF ACTION COMMENTS 18003030U SCANNELL, CHARLES & DARLENE $228.78 11/1312003 No Forward Address .140027009 SMITH, JEFFREY A $251.19 0110512004 No Forward Address 16006210C TAYLOR, JAMES $74.86 0610712004 60028004 TAYLOR, JAMES M. $393.46 0211012004 No Forward Address 180060122 THOMAS, THE ESTATE OF JAMES $156.95 1010112004 No Forward Address 200001382 THORPE, LOUISE $52.23 04/2312004 No Forward Address 160062300 TIMMER, STEPHEN M $220.50 12/10/2003 120062504 VI/ILLIAMS, BRUCE $57.90 07/1512004 No Forward Address 160062506 VI/INGET, EUNICE $34.71 11/04/2004 DECEASED 200045256 ZIEBER, THE ESTATE OF DONNA $520.53 . 04/1212005 DECEASED TOTAL: I $19,571.031 J1A~--f~ ~PROVED B' FINANCE DIRECTOR: CITY MANAGER: ... C- eo , _MEMORANDUM " FROM: Clark Corbridge, City Manager Kristin Erchinger, Finance Director ~ f" O~SIO~ l~..:~~~~ " '.\,'.;-,- rC,. " ~.; - -..... ~:;;;; "l~AS"'~ DATE: December 21, 2005 TO: RE: Harbor accounts receivable write-offs for 2005 Seward City Code Chapter 5.01.040 provides that "the fmance director may, on approval of the city manager, cancel any account receivable except bills which may become alien against property for taxes, but shall report such cancellations to the city council." Pursuant to SCC 5.01.040, I am requesting your approval to write-off the attached harbor accounts receivable. The cancellati9n list includes customers whose mail is undeliverable, have no forwarding address, who we have been unable to serve through small claims court action, whose accounts have been inactive, who have abandoned vessels in the harbor, .or who have small account balances which do not justify the cost of furiher collection attempts. The cancellation process is an accounting procedure that reduces the accounts receivable to an amount that is likely to be collected, and results in discontinuing further accrual of interest and late fees on accounts that may never be collected. However, the finance department does not discontinue collection procedures. Collection efforts are continued, especially if a customer is eventually located. Some customers return to the community and seek to receive City services again. At that time, all past due balances are due prior to reinstating service. If a delinquent customer remains in Alaska, the finance department will seek to attach the customer's Alaska Permanent Fund Dividend. All accounts that we are not able to locate and serve with small claims action will then be pursued through collections procedures. -'" If you approve the cancellation of the attached harbor accounts receivable, please sign where indicated and return to me for action and distribution to the Council for their information. If you have any queStions, please contact me. Thank you. ~~ Approved for write-off: Kristin Erchinger, Finance Director .lo .ClJ {f~ Il-lJ-or- \ Approved for wri~: - Clark ,Corbridge, City Manager . 110 ~ Seward Small Boat Harbor Write OffToCollectioDs January - December 2005 3 Acct Customer Boat Name Last Use of Comments BalaJlee No. Name Facility Due 1469 Miner. Steve Endeavor 59' SMlC Yd CUJ'l'eI\t Derelict/Abandon $516.49 1654 Bevmer. Arnold Primus 75' SMlC Yd Curreot Derelict/Abandon 560.95 1989 Hamilton. JamOl . 4S' SMIC Yd Cummt Derelict/Abandon 508.92 2206 Cabana. A1fted Kamisb8k 71' SMIC Yd Cummt Dere1ictlAbandcm 441.14 6664 Horton. Tom Solution SO' SMIC Yd Cummt Derelict/Abandon 741..36 8948 Bmber Jr.. Llovd lite Roval 72' SMIC Yd Curreat Derelict/Abandon 624.24 10877 Monk. Ed Heather Kav 24' 3/121014 Mr2 Hbr LateFee/.RclUm MaD 7.71 10862 David AK2873H 10/3/03 Mr2 Hbr LateFeeIRetum Mail 8.14 9176 Sapka Big vaUey 92' 8104, Mrg Hbr Boat SIDk Pi-"'::. T~_ 82.23 Totals $3.492.18 ,- The above accounll were written off to Collectionlln 2004. The approval to write offdle ac:coumbahmces came in Man:h of2005 ~ which time additional eharpt~ late fees were made against ,the accounts. The Balances above ~flect those c:baipI. The.Harbor Dept is requesting these ~I""ees be applied to the .- CollecnOllS accounts. .. Aed Customer Last Use of .. No Name Boat N8JDe Faeilides Comments Am01Ult 1274 HaU. Brie Freak BBbV26' Current in HaJbor Derelict/Abandon SS,931.47 1383 Harril.RiCbard Es1ladon 76' SMIC Yd Cmrent Derelict/Abandon 9.504.08 1535 BrownlJ12 Timber COnstrUCtor 90' S/04-liJ1 North Dk Last Pel 1/18105 2.312.33 1568 Rambo. Bruce Maddock SO' 7/04 5dllVMn!:Hbr No-o 163.69 ' 7421 No Known Owner AK7949N 7105Mr.Hbr No Known Owner 3S.6O 10289 CeeJen. Robert AKS745P 22' 7/05 Mnr: Hbr Return Mail 18.58 12221 No Known OWner AI059SAB 9/05Mra Bbr No Known Owner 192.57 11J90 Jackson. RobIn Sow RebeI2J' CUl'J'eIltlY In Hbr DereliCt/Abandon 5,012.07 . 6587 Stone. Nicholas What a Deal Old Debt No RCSiiOnseIRM 618.91 Totals 523789.30 TableD refJects the current write off to collections list for 2OOS. .. Total Write om for 2005 527,281.48 Approved By: .~~~ Date: I :J.-/ ';}-I/O.l- . p. J)irector .. . Date: . City Manager .' . . . . ,'; .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . ~;~;~;~/ . . . . ..... .. .. .. .. . .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .., ., .. 411 NAME MILG, JASON MALDINI, DANIELA NEGRON-NEGRON, ANGEL PAGE, TERENCE J. FRANK, RONALD D. FRANK, RONALD D. CRAIG, CRYSTAL GROSSNICKLE, GARRETT WHITE, ROBERT H. GOT-HE, GLORIA PIASKOWSKl, GEORGE M. PIASKOWSKl, GEORGE M. COSTELLO, KENNETH P. PIASKOWSKl, GEORGE M. PIASKOWSKl, GEORGE M. IRWIN, CHRISTINA M. MCKEEFERY, LINDA TOTAL APPROVED BY: CITY OF SEWARD OUTSTANDING NSf CH~CKS AS OF DECEMBER 31. 2005 , '" CHECK . DATE 01/13/2005 01/2212005 05/07/2005 06/01/2005 OS/2612005 06/07/2005 06121/2005 06/13/2005 07/21/2005 0811312005 0811412005 0811212005 08/1512005 08/17/2005 08/21/2005 07/21/2005 09/t1/2005 EXPLAINATlON GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS GAVE TO MISC AIR FOR COLLECTIONS CAMP CAMP CAMP CAMP CAMP CAMP CAMP CAMP 1 $476.021 FINANCE DIRECTOR: .'JI"j~~. CITY MANAGER: 112 .' it "