HomeMy WebLinkAbout10092006 City Council Packet
81. Peters - Happy 100 years!
October 9, 2006
City Council Chambers
Beginning at 7:30 p.m.
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The City of Seward, Alaska
October 9, 2006
City Council Meeting
" ~o
,,':.:l p.m.
Council Chambers
A. Froclamations and Awards
1. Domestic Violence Awareness Month
Proclamation. . .., .. . .. . .. . . . . ... .' . .. . ... .' . . . Pg 4
B. Borough Assembly Report
C. City Manager's Report
D. City Attorney Report
E. Fort & Commerce Advisory Board Report
F. Other Reports, Announcements and Presentations
Vanta Shafer
Mayor
Term Expires 2007
L
2.
3.
4.
Willard E. Dunham
Vice Mayor
Teml Expires 2006
Robert Valdatta
Council Member
Teml Expires 2007
Robert Thomas
Council Member
Term Expires 2007
Steve Schafer
Council Member
Teml Expires 2007
Dorene M. Lorenz
Council Member
T er111 Expires 2006
Jean Bardarson
Council Member
Term Expires 2006
Clark Corbridge
City Manager
Jean Lewis
City Clerk
Brad Meyen
Cheryl Brooking
City Attorney
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
1. Historic Preservation applicant Linda Lasota.. .Pg 5
2. Mile 0-8 update by DOT Project Engineer Alien
Drake.
3. 10 minute presentation from the Kenai Peninsula
Small Business Development Center.
4. Senior Center Grant Request Presentation by Dana
Paperman.
5. Budget Presentation by City.
5.
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT
THOSE ITEMS SCHEDULED FOR PUBLIC
HK4.RING. [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.}
6.
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 requesis.
In the event of such a request, the iienr is returned to the
Regular Agenda]
City of Seward, Alaska
October 9, 2006
Council ~4genda
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With CTA Architects Engineers To Conduct A State Of Alaska Mandated Design
Review For The New Long Term Care Facility And Appropriate Funding For A.l1
Amount Not To Exceed $17,000. ... ... ......... .................................. .Pg 149
*3. Resolution 2006-107. Authorizing The City Manager To Enter Into A Contract For
The Seward Small Boat Harbor South Harbor Float Installation And Uplands
Improvement For An Amount Not To Exceed $2,016,489 And Appropriating Funds
For The Project.... ......... ......... ... ... ... ... ..................... .Pg 158
C. Other New Business Items
* 1. Certify the October 3, 2006 Municipal Election and declare the results
finaL....................................,........................................ .... ...Pg 164
*2 Appoint Linda Lasota to the Historic Preservation Commission with a tenD to
expire May 2009.
10. INFORMATIONAL ITEMS AND REPORTS (No action required)
11. COUNCIL COMMENTS
12. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one
opportunity to speak}
13. COUNCIL AND ADMINISntATION RESPONSE TO CITIZENS'
COMMENTS
14. EXECUTIVE SESSIONS
A Go Lnto Executive Session To Conduct City Attorney, City Clerk and City
Manager Evaluations.
15. ADJOURNMENT
City of Seward, Alaska
October 9, 2006
Council Agenda
Page 3
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Sep-27-DB 12:00
From-City 0\ ,ew.ru
CITY OF SEWARD, ALASKA
APPLICATION FOR THE
SEWARD HISTORIC PRESERVATION COMMISSiON
NAME:
Linda Lasota
STREET ADDRESS:
503 Ballaine
MAILING ADDRESS:
P. O. Boz 766 Seward. iLK. 99664
HOME TELEPHONE:
907-224-3316 (unlisted) 224-4300 (work)
LENGTH OF RESIDENCY IN THE SEWARD AREA: 1" + vears
PRESENL Y EMPLOYED AS:~eal Technician and }!arine Educator
List any special training, education or background such as grant writing, history,
architecture, or archeology, which may help you as a m€'Jmber of the
Commission- draft person fOT architecture office; technician at
~; c:1r;ynll l:.nnni-y (Rn--rnng"h) 1?1 ~'nrni.ug Qff'"'~.o: re~~2.rg.ller
Have you ever been involved in any aspect of histonc preservation? If so, briefly
describe your involvement: "R..",rnc-"r-i <'in of ;:;PT<''''''',.], " 1/<>; 1 1/"<>0 r...r l'"r
Seward Chamber and City; pai~ti~g hisrori~ hnmp~
1 am specifically interested in serving on the Historic Preservation CommIssion
because: to preserve the historic buildings and areas rplatjvp to
the history of Seward and Ala8F~.
H",ve you ever served on a simile/' commission elsewhere? Yes or No
If so, where?
No
l\nd when?
If appointed, are you willing to:
.. Do historic research?
.. WorK_ on preparing grant applications?
.. Wort, on \l\ffjting historic register nominations?
~ Attend historic presenratton workshops?
(</2 ('---P
~ ~tJ/"yV't-;-
SIGNATURE
~--
(Y~' NO
<'YEs) NO
~NO
~' NO
n ;l _~ /}/1-/-/
~_r0!r"'j /;2-"'.-<;:..- T/ ~(J0-.s
DATE'
5
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City of Seward, Alaska
Ordinance 2006-11
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. Changing the land use designation of the Forest Acres, Tract A,
Seward Long Teml Care Facility (Preliminary Plat) from Rural Residential (RR) and
Resource Management (Rl'A) to Institutional (INS) hereby amends the official Land Use
map ofthe City. (as displayed in attached preliminary replat)
Section 2. Changing the zoning designation of the Forest Acres, Tract A, Seward
Long Term Care Facility (Preliminary Plat) from Rural Residential (RR) and Resource
Management (Rl'A) to Institutional (INS) hereby amends the official Zoning map of the
City. (as displayed in attached preliminary replat)
Section 3. This ordinance shall take effect ten (10) days following enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA.,
this 9th day of October, 2006.
THE CITY OF SEWARD, ALASKA
Vanta Shafer, Mayor
AYES:
NOES:
A..BSENT:
i\.BSTAIN:
ATTEST:
Jean Lewis, CMC
City Clerk
(City Seal)
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The Seward Citv Code 15.05.025 defines the Institutional district (INS) Public and private
educational, ad~inistrative, government and health care uses, including public land reserve for
future public development. The development standards are intended to set a high standard to
assure that the activities provide visual amenity to the surrounding area.
Recognizing the primary concern of all land use regulatory actions including zoning, IS to
promote public health, safety, and general welfare, as per SCC 15.01.010, administration
recoIIJ....'1lends this rezone for several reasons:
1. This rezone will provide more land for the health care needs of the community,
specifically for the proposed LTC facility. The intent for the LTC facility is to have a
campus like setting which will feature five buildings versus one large structure. The
campus setting promotes a "heme" environment within a residential setting with
landscape buffers between the adjacent roads, versus the traditional medical
institutional setting.
2. While there are limitations involved with attempting to prioritize health care land use
needs over the land use needs for single family homes or any other activities, the
community has a very limited selection of land available for a health care facility,
whereas more options are available for land for single family homes.
3. The 2020 Comprehensive Plan and the 1999 Strategic Plan encourage improving the
health care capacity of the community.
CONSISTENCY CHECKLIST:
Yes
No
1. Comprehensive Plan (2020) ~ ~
The Comprehensive Plan states "Relocate the [LTC) facility and the hospital to a site w"hich will
support expansion alid modernization". (page 26).
2. Strategic Plan (1999) ~ ~
The Strategic Plan states "We are a cOlllilTunity that provides all integrated array of health care
services designed to protect and improve the quality of life for all citizens". (page 19)
As required by Seward City Code, property owners within three hUlldred (300) feet of Tract A,
and in addition all local property owners who use the Forest Acres road network were notified of
the proposed rezone action in order to provide more opportu..11ity for public involvement and the
property was posted with public notice signs.
PLANNING Al~D ZONING RE\'iEW
At the September 5, 2006 Planning and Zopjng meeting the Commission approved Resolution
2006-20 recommending City Council adopt Ordinance 2006-XX, amending the Land Use Plan
3...11.d Rezoning of Forest Acres Tract A, (prelLrninary plat) from Rural Residential (RR) and
Resource Management (RM) to Institutional (INS).
However, the Planning and Zoning Commission lLl1animously supported Council amending tt'1e
Ordinance by adding a new Section 3 as follows:
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If council would like to require dwellings on the LTC site that are unrelated to the LTC facility,
this would be more appr~priate as a condition of the CUP and should be based on ractual
findings to support the need or such condition,
Recently the Seward Plawing and Zoning Corrnnission approved a conditional use site for the
LTC facility. The intent of the Commission's recommendation to Council has already been
accomplished by 1i'1e CUP. One of the conditions is:
4. Development within 100 (one handred) feet of Afognak Avenue, Cottonwood and
Maple Streets will be restricted to 10 (ten) resident homes effectively screening
the more commercial uses of the remainder of the parcel from the Rural
Residential areas of Forest Acres.
The administration believes that this condition negates the need to include the Commission's
proposed language in the rezoning ordinance.
The conditional use permit uses language that more accurately describes the intent, which is to
allow the "residential" type sLructures used for convalescent care along the residential streets
while restricting other institutional developliaent or types of structures to other areas on the site.
Any difference in wording between the zoning classification and CUP condition could cause
further inconsistent interpretations.
FISCAL NOTE:
The City of Seward will have no costs associated with this amendment to the Land Use Plan and
change of zoning designation.
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A d b~. D ..11" . " . v. ., j .
pprove y rma.l1ce eparLment v,..'['?:;:u:,t;,j-./.{--t..ud''l'yj.:'>1
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RECOMMENDATION:
Staff respectfully recommends Coal1cil introduce and adopt Ordinance 2006-XX as written
(without the Planning a.l1d ZOJling recommended new Section 3)
September 25, 2006: Council introduces Ordinance 2006-XX as written, amending the Land
Use Plan and Rezoning Forest Acres Tract A, Seward Long Tern1 Care Facility Subdivision
(Prelimina.ry Plat) from Rural Residential (RR) and Resource Management (RM) to Institutional
(INS).
October 9, 2006: Coal1cil conducts a public hearing and adopts Ordinance 2006-X.X.
amending the Land Use Plan and Rezoning Forest Acres Tract A, Seward Long Term Care
Facility Subdivision (Preliminary Plat) from Rural Residential (RR) and Resource Management
(RM) to Institutional (INS).
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Seward Plmming and Zoning
Resolution No. 2006-20
Page 2
THE CITY OF SEWARD, ALASK-'l.
Marianna Keil, Chair
AYES:
NOES:
ABSENT:
ABSTAIN:
Smith, Anderson, Clark, Hchl, Roach', Strobel, Keil
None
None
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l,one
ATTEST:
Jean Lewis, CMC
City Clerk
(City Seal)
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-102
research and rehabilitation components of the Improvements described therein (the "EVOS
Facility"); and
WHEREAS, the parties intend to transfer all of the obligations of the City under the
Cooperative Agreement and t.'1e EVOS Trustee Council Resolution adopted November 2, 1994 to
SAAMS; a.'1d
WHEREAS, one of the principal purposes ofthe Original Agreement was to provide for the
construction of the Improvements, the construction of the Improvements is complete, and those
terms of the Original Agreement have been fully performed; and
WHEREAS, the Original Agreement recognized the City's issuance of non-recourse revenue
bonds to provide part of the fina.ncing for the Improvements, including provisions to ensure Siv\iVlS
managed the Improvements in a marmer that would generate revenue sufficient to pay debt service
on the bonds; a..'1d
WHEREAS, SA~MS requested additional amendments to the Original Agreement to reflect
the completion of the construction of the Improvements, the complete retirement in 2001 of all non-
recourse revenue bonds issued by the City, the parties' experience with the operation and
maintenance ofthe Improvements since their completion, a.nd to suppOli the efficient operation and
maintenance ofthe Improvements for the benefit ofSAA..l\1S' mission and the Seward conununity in
the future; and
WHEREAS, it will serve the convenience of both parties to amend and restate the temlS of
the Original Agreement in a single document; and
WHEREAS, the City Council has determined that it is in the public interest to enter into this
Agreement for the lease ofthe Site and the Improvements by negotiation and without appraisal of the
fair market value of the Site and the Improvements because of the public benefits provided by the
SeaLife Center to the Seward community
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that
Section 1. For the reasons stated in the above recitals, \vhich are incorporated herein by
reference, it is in the public interest to enter into an A..l'11endment and Restated Agreement for Lease
of Tract 2A, Waterfront Tracts, and Adjacent Tidelands and the Lease, Operation and Maintenance
of the Alaska SeaLife Center in substantially the form presented at this meeting.
10
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Wohlforth \ Johnson \ Brecht
Cartledge \ Brooking
A PROFE~S,ONAL CORPORATION
Eric A. Auten
Julius J. Brecht
Cheryl Rawls Brooking
Cynthia L. Cartledge
Michael Gatti
Robert M. Johnson
Bradley E. Meyen
Eric E. Wohlfarth
Telephone
907.276.6401
ATTORNEYS AT LAW
900 WEST 5TH AVENUE, SUITE 600
Facsimile
907.276.5093
ANCHORAGE, ALASKA 99501-2048
Website
www.akatty.com
October 9,2006
Mayor and Members of Council,
City of Seward
P.O. Box 167
Seward, Alaska 99664
Re: Proposed Amendments to Agreement with the Seward Association for the
Advancement of Marine Science; Our File No. 4337.1022
Dear Mayor and Members of Council:
Submitted for your review and consideration is a proposed Amended and Restated
Agreement for Lease of Tract 2A Waterfront Tracts, and Adjacent Tidelands, and the
Lease Operation and Maintenance of the Alaska SeaLife Center.
The Seward Association for tice Advancement of Marine Science ("SAAMS")
entered into an agreement with the City of Seward effective April 28, 1995 entitled the
"Agreement for Financing, Lease, Construction, Operation and Maintenance of the Alaska
SeaLife Center." Recently, SAAMS asked the City Council to consider amending and
restating the agreement between the parties to reflect that construction is complete, the
bonds issued by the City have been paid off, and SAAMS' operation of the Alaska SeaLife
Center have evolved over the past ten years. SAAMS now seeks to amend and restate
the agreement to reflect the current situation with regard to operating the facility and
leasing the adjacent tidelands.
In developing the proposed amended and restated agreement, certain guidelines
were followed. These principally include (a) SAAMS' acceptance of all of the City's
obligations described in the EVOS Resolution and the ADF&G Cooperative Agreement,
(b) maintaining the term of the agreement, (c) continuing to allow SAAMS to use the land
owned by the City and to operate the Alaska Sea Life Center in the building owned by the
City without payment of rent (rent is paid for lease of the tidelands), and (d) reducing the
reserve fund amounts required to be maintained by SAAMS.
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Mayor and Members of Council, City of Seward . - ~ -
Re: proposed Amendments to Agreement with the Seward Association for the Advancement of Manne
Science; OUf File No. 4337.1022
October 9, 2006
Page 3
as opposed to a fluctuating rate such as CPI, allows SAAMS to Invest the fund at a
specified rate. The average annual CPI increase over the past 2-1 years is approximately
2.5%, and we are currently in an "increasing" phase. A fixed rate of 3% was agreed to be
a fair number over a long period of time.
8. In section 5.6 the Terminaticn Fund is revised to reflect that SAAMS currently
has $700,000 set aside to operate the Improvements for a one year period. This fund will
be maintained at that level subject to increases of 3% per year (see discussion in
paragraph 7 above). As with the R.enewal and Replacement Fund, SAAMS is responsible
for all costs related to operating the facility for that one year period even if such costs are
in excess of the amount in the Termination Fund.
9. In section 9.1 SAAMS is expressly permitted to sublease any part of the Site
subject to compliance with three stated conditions. SAAMS must provide the City with a
copy of the essential terms of each sublease, all subleases shall be for uses that are
accessory and subordinate to the use the Site and Improvements for marine research
and education facility, and the sublease \vill not conflict with or impair SAAMS status as a
501 (c)(3) nonprofit organization.
10. Section 10.13 is a new section describing the relationship between the
parties and acknowledges that neither party is liable for the other party's debts or
obligations except as described in this agreement.
11. In section 10.14 there is an express recognition by each of the parties that
SAAMS may engage in activities separate and apart from this agreement and its
relationship with the City, To ease any concerns of the City that SAAMS may divert funds
from its responsibilities under this agreement to other activities, SAAMS included a
mission statement in section 2.2.10 and a representation and warranty to the City that
SAAMS will not take any action or fail to take any action that will have a material adverse
effect on SAAMS' performance of its primary corporate purpose and mission as described
in subsection 2.2.10 of the agreement
12. Section 10,15 clarifies USe3 ofthe name "Alaska SeaLife Center." in the past
there has been some disagreement and concern about use of the name Alaska SeaLife
Center and specifically the use or control of funds designated for the Alaska Sea Life
Center. This provision clarifies that SAAMS is authorized to accept and utilize funds
designated for the Alaska SeaUfe Center through the term of this agreement. Section
10.15 also recognizes that the name J\laska SeaLife Center is defined in the Cooperative
Agreement between the City and the Department of Fish and Game and this agreement
does not affect the use of that term as it is used in the Cooperative Agreement.
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09/26106 DRAFT
AMENDED AND RESTATED \
. AGREEMENT FOR LEASE OF TRACT 2A, I
II VV ATERFRONT TICA.CTS AND ADJACENT ~
. TIDELANDS, AND THE LEASE, II
~ OPERATION Al'..JD MAINTENANCE OF \11
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I SEWARD ASSOCIATION FOR THE
ADV ANCEMENT OF MARINE SCIENCE
Effective Date: November 8, 2006
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Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
09126/06 DRAFT
City Events ofDefauIL................................................. ..............
Remedies of SAAMS on the CiTY's Default..................
Informal Dispute Resolution, Mediation.......................
No Remedy Exclusive ....................................................... .................. . .
Indemnity and Exclllpation............................................... ............ .. ...... . .
Limitation of City Liability ........................................
Indemnity ........................................................................ . ........... .... . .
Site Conditions ............................................................... .... ..... .... . .. .
Environmental Matters ............ ....................................
Sublease or Assignment.................. .................................
Subleasing ........ ............................ ............. .............. ........
Assignment.................................. ....................................
1Vliscellaneous.................................................................... ........... .
Permitted Encumbrances.................................................... .... . .... .. .
No Implied Waiver...................................................... ........ .... . . . . .
Successors in Interest................................................. ...... . ....
Notices........................................................................ ......... ...... . . . ...
Parties in Interest........................ ......... ......... .................
Time of Essence.............................................................. .... ...... .
Headings.......................................................................... .... ..... ....
Law Governing Construction Agreement ................... ......
Exclusive Forum and Venue ........................................ ...........
Severability .................................................................... .. ....
Integration and Modification............................... ......... .. ... ....
Additional Documents ........................................... . ....... ..
Relationship of Parties........ ................. ....... ................
Other Activities .......................................................
Use of the Name "Alaska S,eaLife Centen.............
. . . . . . . . . .. ...... ........
Site Description
Environmental Assessments
Tidelands Description
2006 Survey/Plat of Tidelands
Plans & Specifications for Floating Dock
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AMENDED AND RESTATED AGREEMENT FOR LE.A.SE OF TRACT 2A, Page 20f36
WATERFRONT TRACTS, AND ADJACENT TiDELANDS, AND THE LEASE. OPERA nON AND
MAINTENANCE OF THE ALASKA SEALlFE CENTER
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09126/06 DRAFT
Infrastructure Improvements at the Alaska SeaLife Center, in Sevvard, Alaska executed in April
1995, as amended (the "Cooperative Agreement"), concerning the construction, operation and
maintenance of the research and rehabilitation components of the Improvements described
therein (the "EVOS Facility"); and
WHEREAS, in the Original Agreement the parties intended to transfer all of the
obligations of the City under the Cooperative Agreement and the EVOS Tlllstee Council
Resolution adopted November 2, 1994 to SAAMS, except to the extent that the Original
Agreement expressly provided otherwise; and
WHEREAS, one of the principal purposes of the Original Agreement was LO provide for
the construction of the Improvements, the ,:onstruction of the Improvements IS complete, and
those terms of the Original Agreement have been fully performed; and
WHEREAS, the Original Agreement recognized the City's issuance of non-recourse
revenue bonds to provide part of the finandng for the Improvements, including provisions to
ensure SAAMS managed the Improvements in a manner that would generate revenue sufficient
to pay debt service on the bonds; and
WHEREAS, SAj,MS requested additional amendments to the Original Agreement to
reflect the completion of the construction of the Improvements, the complete retirement in 2001
of all non- recourse revenue bonds issued by the City to finance part of the cost of constTuction,
to reflect the parties' experience with the Jperation and maintenance of the Improvements since
their completion, and to support the efficient operation and maintenance of the Improvements ror
the benefit of SAAMS' s mission and the Seward community in the future; and
WHEREAS, it will serve the convenience of both parties co amend and restate the terms
of the Original Agreement in a single document.
WHEREAS, the City is legally authorized b enter into this Agreement, SAAMS is
legally authorized to enter into this Agreement, and the City Council of the City has determined
that it is in the public interest to enter into this Agreement for the lease of the Site and the
Improvements by negotiation and withow: appraisal of the fair market value of the Site and the
Improvements.
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES and of the mutual
covenants herein set forch., the parties hereto agree and covenant as follows:
1. Definitions and Gene ral Proviskms
1.1 Definitions. The following temlS shall, for all purposes of this Agreement, have
the following meanings:
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A,
WATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA TION
MA1NTENANCE OF THE ALASKA SEA LIFE CENTER
!:\Docs\43371022\Amended and Restated AgreeiC.lent 2006.doc
Page4of36
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l:l\ftlO 90192:160
09/26/06 DRAFT
1.1.11 "Environmental L"PNS" means all local, state, and federal laws,
ordinances, regulations, and orders relaTed to environmental protection; the use, storage,
generation, production, treatment, emission, discharge, remediation, removal, disposaL or
transport of any Hazardous Substance.
1.1.12 "Event of Default" means any of the events specified as an event of
default of SAiu\1S in Section 7.1, of the City in Section 7.3, or else\vhere in this Agreement.
1.1.13 "EVOS Facility" means the research and rehabilitation components of the
Improvements, described in the Institute of '\'farine Science Infrastructure Improvements Exxon
Valdez Oil Spill Trustee Council Project #94199, Project Description and Supplemental
Materials, dated September 26, 1994, Section 6, Schematic Design, as modified during their
initial construction and by subsequent alterations and improvements.
1.1.14 "EVOS Requirements" means the obligations of the City described in
the Resolution of the EVOS Trustee Council adopted November 2, 1994.
1.1.15 "EVOS Trustee Council" means the Exxon Valdez Oil Spill Trustee
Council.
1.1.16 "Fiscal Year" means the fiscal year of SAAMS, presently the twelve-
month period ending on September 30, or any other twelve-month period that SAAMS may
designate from time to time as its fiscal year.
1.1.17 "Floating Dock" means t..'1e floating dock, gangway, SUppOl~lS, utilities,
ladders, fire and safety equipment and all equipment necessary and proper for their use. The
Floating Dock shall be a private dock located on the Tidelands.
1. 1 .18 "Force JVIajeure" means, without limitation, the following: acts of God;
strikes, lockouts, or other industrial disturbances; acts of public enemies; orders or restTaints of
any kind of the government of the United States or of the State of Alaska or any of their
departments, agencies, subdivisions, or officials, or any civil or military authority (including any
orders or restraints exercised pursuant to any agreement to which SAAMS or the City is a party);
insunection; riots; landslides; icebergs; typhoons; tomadoes; adverse weather conditions; tidal
waves; emihquakes; tsunami; fires; stom1S; droughts; floods; explosions; breakage, malfunction,
or accident to facilities, machinery, transmission pipes, or canals; or any other cause or event not
reasonably within t..he control of the party ,vhose performance is at issue.
1.1. 1 9 "Hazardous Substance" shall be defined as any substance or matenal
defined or designated as hazardous or toxic waste; hazardous or toxic material; hazardous, toxic,
or radioactive substance; or other similar term by any federal, state, or local statute, regulation,
or ordinaJXe or common law presently in effect or that may be promulgated in the future as such
statutes, regulations, and ordinances may be amended from time to time.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A,
WATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION
MAINTENANCE OF THE ALASKA SEALIFf CENTER
L\Docs\43371 022\Amended and Restated Agreement 2006.doc
Page 6 of 36
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1.1.30 "State" means the State of Alaska.
1.1.31 'Termination Fund Requirement" means the amount required to
maintain the Site and Improvements while dosed to public access and to any research activity
for a period of one year pursuant to SAAMS' s election not to operate the Improvements under
Subsection 3.1.1, and determined to be (i) $700,000 for the Fiscal Year ending September 30,
2006, and (ii) for each subsequent Fiscal Year, the amount determined by multiplying increasing
the Termination Fund Requirement for the immediately preceding Fiscal Year by 1.030.
1.1.32 "Term" means the term of this Agreement, which shall be the duration of
the lease of the Site, Improvements, and Tidelands by the City to SAAMS as set forth in Section
31.
.1.33 'Tidelands" means ';he real property owned by the City and described in
Exhibit ItC.lf
1.1.34 'Tour" means the Alaska SeaLife Marine Tour operated by the Quaiified
Vessel Operator or by SAiu\1S, or such other name that may be detennined by SAAMS and the
Qualified Vessel Operator.
1.2 General Definitions.
1.2.1 Sections. All references in this Agreemem to designated "Sections" and
other subdivisions are to designated sections and other subdivisions of this Agreeme nt.
1.2.2 General Words of Reference. The words "herein," "hereof~" "hereto,"
"hereby," and "hereunder" and other words of similar impOli refer to this Agreement as a whole
and not any particular section or other subdivisions.
1.2.3 Singular/Plural The terms specifically defined in Section 1.1 have the
meanings assigned to them in that Section;md include the plural as well as the singular.
1.2.4 GAAP. All accounting terms not otherwise defined herein have the
meanmgs assigned to them in accordance with applicable generally accepted accounting
practices, consistently applied, in effect from time to time.
1.2.5 Authority. Every "approval," "request," "order," "demand,"
"application," "appointment," "notice," "statement," "certificate," "consent," or similar action
hereunder shall, unless the form thereof is specifically provided, be in writing, signed by a duly
authorized officer or agent of the party or other person with a duly authorized signature.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A,
WA TERFRONT TRACTS, AND ADJACENT TiDELANDS, AND THE LEASE,
IvlAINTENANCE OF THE ALASKA SEALIFE CENTER
1:\Docs\43371 022\Amended and Restated Agreement 2006.doc
Page8of36
OPERA nON AND
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l::l'ifl:lO 90/9<:/60
09[26[06 DRAFT
2.1.7 Enforceability. When duly executed, this Agreement will be enforceabie
against t.'1e City according to its terms, except as may be limited by bankmptcy, insolvency,
reorganization, or other laws affecting creditors' rights generally as amended fr'om time to time.
2.1.8 Effect of Certificate. Any certificate signed by an official of the City
duly authorized to execute such certificate and delivered pursuant to this Agreement shall be
deemed to be a representation and warranty by the City as to the statements made therein.
2.2 Representations and Warranties of SAAMS. As of the date hereof, and as to
Subsection 2.2.10 for the Term of this Agreement, SAAMS hereby represents and wanants as
follows:
2.2.1 Good Standing; 501(c)(3) Recognition. SAAMS is a nonprofit
corporation in good standing under the la'ws of the State of Alaska and has been determined by
the Internal Revenue Service to be an organization described in 26 U.S.c. 50l(c)(3).
2.2.2 Authorization. SAAMS has full corporate power and authority to carry
on its business as now conducted and to enter into this Agreement. The execution and delivery
of this Agreement has been authorized by proper corporate action, and this Agreement
constitutes a valid and legally binding obligation of SAAMS.
2.2.3 Consent, Approval. Except as may have already been obtained, no
consent or approval of any tmstee or holder of any indebtedness or obligation of SAAtvlS, and
no consent, approval, permission, authorization, order, or license of any govemmental authority,
is required to be obtained by SAAMS for the execution and delivery of this Agreement or any
other instrument or agreement required of SAAMS under this Agreement.
2.2.4 No Restrictions Oil. Agreement. Except as has been waived in writing by
the City, SA.AMS is not subject to any charter, bylaw, or contractual limitation or provision of
any nature whatsoever which in any way limits, restricts, or prevents SAi'J'vlS from entering into
this Agreement or from performing any oL.ts obligations hereunder.
2.2.5 No Defaults.
agreement, lease agreement, rental
obligation
SAAMS is not in default of any promissory note, loan
agreement, grant agreement, or any other contract or
2.2.6 No Conflicts with Other Agreements. Neither the execution and
delivery of this Agreement, and the consummation of the transactions contemplated hereby, nor
the fulfillment of or compliance with the provisions hereto, materially conflicts with, violates, or
breaches any charter, bylaw, or stock provision of SAAMS, any of the material tem1S_
conditions, or provisions of any indenture, instrument, or agreement to which SAAMS is a p3.liy
or by which SAAMS is bound, any statute, rule or regulation, or any judgment. decree, or order
of any court or agency binding on SAAI'vfS, or constitutes a default under any of the foregoing
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page! 0 of 36
WATERFRONT TRACTS, AND ADJACENT TfDELANDS, AND THE LEASE, OPERAT!ON AND
MA!NTENANCE OF THE ALASKA SEALIFE CENTER
1:\Docs\43371 022\Amended and Restated Agreement 2006.doc
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09/26/06 DRAFT
Improvements are not capable of generating revenues sufficient to cover the operating expenses
and debt service of the Improvements, plus fund the renewal and replacement fund for the
Improvements as required in Section 5.5; arid (ii) while being operated in accordance with any
recommendation from the independent financial consultant and in accordance with tenns and
conditions of this Agreement during t.he tv'iO -year period following SAAMS' detem1ination, the
Improvements do not generate revenues sufficient to cover the operating expenses and debt
service of the Improvements, plus fund the renewal and replacement fund for the Improvements
as required in Section 5.5; or
3.1.1.2 If the Cooperative Agreement has terminated, end upon the date
that SAAMS makes a reasonable detennlnation that the Improvements are not capable of
generating revenues sufficient to cover the operating and proactive maintenance expenses of the
Improvements, plus fund the renewal and replacement fund as required in Section 5.5.
3.1.2 Limitation Jlf Term. In no event shall the Tem1 of this
Agreement extend beyond the earlier of (i) April 28, 2048, and (ii) any event causing damage to,
or destruction of, the Improvements, where the cost of repairing or restoring the Improvements,
net of any available reserves and insurance proceeds not reduced for applicable deductibles and
coinsurance, exceeds ten percent (10%) ofthe replacement cost of the Improvements.
3.2 Rental Payments.
3.2.1 Site and Improvements. With regard to the Site and Improvements,
SAAMS shall pay to the City a yearly rental of One Dollar ($1.00), payable on the first day of
the Tem1, and thereafter on the nrst day of each calendar year during the Teml. SAAMS has
prepaid such rent for the entire Term.
3.2.2 With regard to the Tidelands, SAAtvIS shall pay Rent to the City as
follows:
3.2.2.1 Initial Rental Rate. Commencing on June 8, 2006, the initial annual Rem
for the Tidelands shall be $8,000. The Rent shall be payable quarterly in advance thereafter on
or before the 20th day of the first month of each calendar quarter: January 20, April 20, July 20,
and October 20. The amount of each qU2frerly payment shall be one-quarter (1/4) of the annual
Rent as initially established or later adjusted under Subsection 3.2.2.2 or 3.2.2.6.
3.2.2.2 Rental Adiustments. The annual Rent shall be adjusted on July 1,2010,
and on the same date every five years hereafter (each a "Rental Adjustment Date"). The
adjusted annual Rent to be paid shall be eight percent (8%), subject to future adjustment by the
Seward City Council at any time during the Term of this Agreement, of the appraised Fair
Market Value of the Tidelands at the highest and best use of the Tidelands. The City shall, at its
own expense, retain an independent Miu-certified appraiser, who shall determine the "fair
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 12 of 36
WATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA TION AND
MAINTENANCE OF THE ALASKA SEALlFE CENTER
i:\00C$\43371 022\Amended and Restated Agreement 2006.doc
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3.2.2.6. Interim Rental Adjustments for Consumer Price Index. For each year in
the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the
annual rental Davment for the Tidelands shall be increased begiIming July 1 of every year
thereafter (eadh . on "Interim Rental Adjustment Date") in an amount that reflects the cpr
Increase.
3.2.2.7. Effective Date of Change in Percentage of Fair lvfarkel Value If the
Seward City Council at any time elects to modifY the percentage of Fair Market Value that is
used to determine the annual Rent to a percentage other than 8%, that rate change will take effect
beginning with the quarterly rental payment due date immediately following the effective date of
the resolution which modifies the 8% rate.
3.2.2.8. Late Payment Charge. Rental payments not received by the due date
shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under
Alaska law, whichever is less, plus a flat monthly late fee of $2.50 as authorized in the City's fee
schedule, or such amount as may be established from time to time by City ordinance or
resolution and relating to late fees for City leases generally
3.3 Quiet Eniovment. The Citj covenants and agrees that SAAMS shall have quiet
enjoyment ofthe Site, Improvements and Tidelands during the Tenn.
3.4 Existing Improvements. The City and SA.A.ivlS ackno\vledge that there are
certain improvements currently located in, on, or around the Site that existed before the date of
the Original Agreement. Such improvements now owned by the City shall remain the property
of the City. Subject to Sections 3 A.l and 3.4.2 of this Agreement, SAAMS may use, sell,
demolish, remove, or otherwise dispose of any such improvements located on the Site. The City
shall receive no compensation for such improvements other than the perfom1ance of SAAMS'
covenants under this Agreement.
3A.l Utilities. SAAMS may, at its own expense and subject to the written
approval of the City director of engineering and utilities, relocate, sell, demolish, remove, or
otherwise dispose of City utilities on the Site.
3.4.2 Fourth Avenue ni}ck. The parties acknowledge that the Fourth Avenue
Dock was decommissioned. SAAMS may not make the Fourth Avenue Dock available for the
docking of vessels without the written pem1ission of the City. SAAMS may, at its own expense,
(i) remove parts of the Fourth Avenue Dock as necessary to render the dock unusable by vessels,
including without limitation bollards, fender poles, and bumpers: and (ii) either render the dock
safe for public access or prevent such acc!Oss by constructing a fence or other equivalent means TO
block access. Except as permitted by this paragraph, SAAMS shall not sell, demolish, remove,
or otherwise dispose of the Fourth Avem:e Dock without the 'WTitten permission of the City.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 14 of 36
ViATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION AND
ivlA1NTENANCE OF THE ALASKA SEALIFE CENTER
!:\Docs\4337i022\Amended and Restated Agree';1cnt 2006.doc
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09i26i06 DRAFT
3.6.5.3. Ownership of Dock. SAAMS and the Qualified Vessel Operator
shall have the right and the responsibility to OVin, furnish, maintain, operate, and manage the
Floating Dock on the Tidelands Property subject to the following conditions:
3.6.5.3(a) Deadline for Construction SAAMS shall cause the Floating
Dock to be constructed on andlor furnished to the Tidelands by June 1, 2007.
3.6.5.3(b) Cost of Construction The cost of any such construction,
reconstruction, demolition, or of any changes, alterations or improvements shaH be borne
and paid ror by SAAMS and the Qualified Vessel Operator.
3.6.5.3(c) Mechanic and Materialmen's Liens. The Tidelands shall at
all times be kept free of mechanics' and materialmen's liens.
3.6.5.3(d) Plans and Specifications. SAAMS has supplied the City with
a copy of the construction plans and specifications and a site plan for the Tidelands
Property and Floating Dock as sho\vn on attached Exhibit E. The site development plan
is considered an essential term and condition. Any material changes to the approved site
plan shall be subject to approval by the City tl>..rough the city manager, \vho may elect to
require both Plan\'1ing and Zoning Commission and City council approval for substantive
site plan changes, which approval shall not be unreasonably withheld.
3.6.5.4. As-built Surveys. On completion of the improvements, SAAMS
shall provide the City a copy of an as-built survey depicting the Floating Dock as completed.
3.6.5.5 Other Qualified Users and User Fees. SAA:tvlS and Qualified Vessel
Operator shall make a reasonable effort to accommodate Other Qualified Users desiring to llse
the Floating Dock. Such use shall be on scheduled basis only and in accordance with such
reasonable terms and conditions as detennined by SA.A.MS and Qualified Vessel Operator. Prior
to the use of the Floating Dock, any Other Qualified Users shall f,lrnish the City, SAAMS and
Qualified Vessel Operator with certificates of insurance evidencing the insurance coverage
required in Subsection 6.5. SA."'-'.\1S and Qualified Vessel Operator are pennitted to charge
Other Qualified Users for their use of the Floating Dock at any time during the ternI of this
Agreement. The User Fee shall be a charge in addition to the Dock Surcharge and the Qualified
Vessel Operator's per-passenger fee to S.A.AMS and is intended to compensate SAAMS and
Qualified Vessel Operator for their maintenance, and operation expenses, plus a reasonable
return on their investment, but in no event shall the User Fee exceed $5.00 per passenger.
3.6.5.6 Operation of Floating Dock. In operating the Floating Dock, SAAMS
shaH comply, and shall remain in compliance during the term of this Agreement, \,,'ith all
stipulations, requirements, and conditions, within its power to perform, of any permit of any
governmental agency having jurisdiction. SA.AMS shalJ promptly make all rep0l1s to any
federal, state or local govermnent or agency required by any pernlit or Environmental Law,
including reports of any spill or discharge of Hazardous Material. SAAMS accepts all risk and
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page j 6 of 36
\VA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION AND
MAINTENANCE OF THE ALASKA SEALIFE CENTER
I:\Docs\4337I 022\Amended and Restated Agreement 2006.doc
41
217
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09/26106 DRAFT
operatiJl1 of facilities on the Tidelands, it being the intent of the parties that the cost and risk of
obtaining required permits be solely costs and risks assumed by SAAMS.
3.9 Tidelands.
3.9.1 Tidelands Accepted! "As-is." SAA.MS acknowledges that it has
inspected the Tidelands and accepts the same "as is" and without reliance on any expressed or
implied representations or warranties of the City, or agents of the City, as to the actual physical
condition or characteristics thereof, including but not limited to the description of the Tidelands
herein.
3.9.2 Survey of Tidelands. Within one hundred eighty (180) days after the
effective date of this Agreement, SAA-MS, at its sole cost, will cause the Tidelands to be
surveyed and platted, if required by the Kenai Peninsula Borough or State of Alaska, by a land
surveyor registered in the State of Alaska; provided, however, that SA-~MS may deter the
surveying of the Tidelands until not later than 90 days after the installation of the Floating Dock
if either (i) SAAl'v1S agrees that tIle Floating Dock will receive only seasonal use, or (ii) SAA!\1S
provides evidence satisfactory to the City that the Kenai Peninsula Borough will not require
platting of the Tidelands if the Floating Dock receives more than seasonal use. A copy of the
drawing and depiction of the Tidelands based upon this survey shall be attached to this
Agreement as Exhibit "D." The description of the Tidelands in Exhibit D shall supersede the
description in Exhibit "C," and shall be considered the COlTect description of the Tidelands for all
purposes under this Agreement. SAAMS shall provide the City a copy of any and all surveys
within ten (10) days of SAAMS' receipt of any and all surveys. The City shall have the right to
comment upon any and all surveys, but the exercise ofthis right shall not imply any obligation to
do so or any obligation to do so in any particular way. If the City objects to the surveyor's
conclusions in the survey, the City may give written notice to SAAMS of the City's objection
within thirty (30) days of receipt of the survey. The City shall then engage a second land
surveyor registered in the State of Alaska. at the City's expense, to make a second survey of the
Tidelands. City shall provide SAA1\1S a copy of the second survey within ten (10) days of City's
receipt of the second survey. Unless the CitY and SAAMS agree which survey is acceptable, the
acceptable survey shall be determined in accordance with arbitration provisions acceptable to
both parties.
3.9.3 Future Replatting. In the event the City elects to replat City-owned real
properly adjacent to the Tidelands, the City agrees to include the Tidelands in such replat. 11
SA!\MS requests a replat of the Tidelands prior to that time, the City shall assist SAAMS in the
preparation of and filing of the replat and SAAMS shall reimburse the City for the City's direct
costs in assisting in the preparation and filing of t.he replat. SAAMS agrees to sign the plat and
any other documents necessary to complete the platting or replatting of any area including aU or
a portion of the Tidelands. SAAMS shall accept reasonable restrictions, easements, or plat notes
as may be required by the City or other governmental authorities as a condition to record the plat
of the Tidelands or the pht of City-owned real property adjacent to the Tidelands.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A. Page 18 of 36
Vi A TERFRONT TRACTS, AND ADJACENT TiDELANDS, AND THE LEASE, OPERATION AN 0
MAINTENANCE OF THE ALASKA SEALIFE CENTER
1:\Docs\43371 022\Amended and Restated Agreemem 2006.doc
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09126106 DRAFT
3.12 Books; Financial Statements.
3.12.1 Books of Record and Account. SAAMS shall keep proper books of
record and account in which complete and conect entries shall be made of al transactions
relating to the Site, Improvements, and Tidelands. Such books of record and account shall at all
times during business hours be subject to the inspection of the City or its authorized
representatives.
3.12.2 Financial Statements. SAA..l\1S shall cause to be prepared and filed with
the City annually, within one hundred eighty (180) days after the close of each Fiscal Year
during the Term, its annual audited financial statements, accompanied by an opinion in writing
of an independent certified public accountant. For the purpose of any provision of this
Agreement that requires SAAMS to maintain a specified balance in a special fund, the balance in
the fund shall be determined as of the last day of the Fiscal Year, in accordance with the audited
financial statements for that Fiscal Year.
3.12.3 Nonprofit Status. SAAMS shall promptly notify the City upon receipt of
any notice from the Internal Revenue Service questioning or revoking recognition of SAAMS as
an organization recognized under 26 USC 501(c)(3). The notice to the City shall describe any
material adverse change to the financial condition of Si\.AMS that would result from SAAMS
ceasing to be recognized as a 50l(c)(3) organization.
3.13 Destruction/Restoration
3.13.1 Tota! or Partial Destruction; Obligation to Restore. If, during the
Tern1, the Improvements are totally or partially destroyed, rendering the Improvements totally or
partially inaccessible or unusable, SAAlvIS shall restore the Improvements to substantially the
same condition as they were in iITLmediately before destruction, except as provided in Sections
3.13.1.1 and 3.13.1.2.
3.13.1.1 If the cost of repairing or restoring the Improvements, net of any
available repair and replacement reserves am insurance proceeds not reduced by applicable
deductibles and coinsurance, exceeds ten percent (10%) of the then replacement cost of the
Improvements, SAAMS can elect to terminate this Agreement by giving notice to the City within
fifteen (15) days after determining the restoration cost and replacement value, and this
Agreement shall terminate.
3.13.1.2 If the existing laws do not permit the restoration, either party can
tem1inate this Agreement iTlliJ1ediately by giving notice to the other party.
3.13.2 City Not Obligated to Restore Improvements. The City shall be under
no obligation to use or advance any of its own funds to restore any damage to, or destruction of,
the Improvements.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A,
\VA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE,
iY1AINTENANCE OF THE ALASKA SEALIFE CENTER
i:\Docs\43371 022\Amended and Restated Agreement 2006.doc
Page 20 of 36
OPERATION AND
,.;: 'l;-O.
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l:l\fHG 90/91:/60
09/26/06 DRAFT
shall have the right to review initial plans, including those supplied to the City and attached as
Exhibit E hereto, and any future changes or additions to the Floating Dock on the Tidelands by
reviewing the design thereof prior to the commencement of construction. The City shall have the
right to comment upon that design and require SAAMS to make reasonable cha nges so as to
avoid interference with public operations, but the exercise of these rights shall not imply any
obligation to do so nor any obligation to do so in a particular way. The Floating Dock shall be
constructed in accordance with the final design specifications reviewed by the City. The City's
representatives may monitor the work and shall have access to the Tidelands at all reasonable
times. SAAMS shall be solely responsible for completing all improvements in accordance \vith
SAAMS' and Qualified Vessel Operator's plans and specifications and shall bear all risk,
responsibility, and liability for properly surveying the Tidelands before construction and placing
all improvements on the Tidelands without encroaching upon any easements, rights-of-way, ex
setback requirements.
4.2 Conditions of Constrnction All construction shall be subject to the following
conditions:
4.2.1 SAAMS shall have obtained all permits required by federal, state,
municipal, or borough govem..mental agencies as a condition to commencing construction.
Si\A.MS, at its sole cost, shall obtain all permits or approvals required by applicable law or
regulation, necessmy to the construction. SAAMS has provided a copy of the Am1Y Corps of
Engineers permit for the Floating Dock, to the City, and will provide any amendments to that
pennit to the City as they are received frOTn time to time.
4.2.2 All contractors for the construction on the Site shall fumish performance
and payment bon:ls to the extent required by A.S. 36.25.010. SAiLi\1S shall require any general
contractor it employs or any general contractor employed by Qualified Vessel Operator for
construction on the Tidelands to obtain performance and payment bonds in the amount of the
contract price, and in the customary f~:mn, and fumish such bonds to the City prior to
commencement of construction; provided that if the cost of the work is less than S50,000,
SAj\MS may require in lieu of performance and payment bonds, another fom1 of perfom1ance
guaranty acceptable to the City. Copies of all such bonds shall be fumished to the City at least
ten (10) working days prior to commencement of construction.
4.3 Mechanics' Liens. SAA::'vlS shall not permit to be enforced against the Site, the
1mprovements, or the Tidelands, or any part of them, any mechanic's or materialman's lien
arising from any work of improvement, however such lien may arise. However, SAAMS may in
good faith and at SAAMS' own expense contest the validity of any such asserted lien, claim, or
demand, provided S.A...A.MS has fumished the bond required in AS. 34.35.072 (or any
comparable statute hereafter enacted providing for a bond freeing the Property from the effect of
such a lien claim). S.A...A...i\1S shall defend and indemnify the City against all liability and loss of
any type arising out of work performed on the Site or Improvements by S.A...A.MS, together with
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 22 of 36
\VA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE. OPERA TION AND
MAINTENANCE OF THE ALASKA SEALlFE CENTER
I:\Docs\4337i 022\Amended and Restated Agreement 2006.doc
4"'1
.. I
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l:l\1~a 9019(;/60
09/26/06 DRAFT
5.3 Space for EVOS Research. SivVvlS shall comply with the tenm of the
Cooperative Agreement then in effect concerning giving priority to research related to the Exxoll
Valdez Oil Spill restoration mission, rent for space to conduct research funded with joint Exxoll
Valdez Oil Spill civil settlement funds, allocation of laboratory and office space to ADF&G for
research projects at Lne EVOS Facility, and use of Research Equipment & Restoration Exhibitry
as described in the Cooperative Agreement.
5.4 Proactive Maintenance of the Improvements. As a part of its commitment to
operate and maintain the Improvements to a standard that is comparable to that of other well-
operated and well-maintained marine research facilities throughout the United States, SAAMS
will adopt with its operating budget for the Fiscal Year ending September 30, 2007, and update
annually, a proactive maintenance plan as a part of its operation of the Improvements. This plan
will identify all routine and periodic maintenance to be performed during the next Fiscal Year,
costs of such maintenance, and a schedule of performance. SA.A.MS shall designate in each
annual operating budget an amount for proactive maintenance. By way of example, SAAMS
annual operating budget for the Fiscal Year ending September 30, 2006 includes $800,000 for
proactive alL'lual maintenance.
5.5 Renewal and Replacement Fund. In addition to the proactive annual
maintenance described above, SAAMS has accumulated and maintain an amount equal to the
Renewal and Replacement Fund Requirement in a special fund dedicated to pay the cost of
major repairs and replacements to and within the Improvements, that otherwise would be the
obligation of the City under the Cooperative Agreement. For purposes of this Agreement,
"major repairs and replacements" means a discrete repair expenditure greater than S50,000, or
any repair or maintenance project that is outside the scope of the proactive maintenance
described in the current proactive maintenance plan. Amounts may be withdrawn from the fund
to pay the cost of major repairs and replacements within the Improvements, to the extent that
insurance or other moneys recoverable as the result of damage or loss to the Improvements are
not available to pay such cost. If a withdrawal from the fund to pay the cost of major repair or
replacements within fhe Improvements causes the amount remaining in the fund to be less than
the Renewal and Replacement Fund Requirement, SAAMS shall restore the amount in the fund
to not less than the Renewal and Replacement Fund Requirement by making not more than five
equal aJlilual deposits to the fund. Nothing in this subsection limits SAAMS' responsibility to
maintain and repair the Improvements in a timely manner even if the costs exceed the amount in
the fimd.
5.6 SAAMS Election Not to Operate the Improvements. SAAMS shall notify the
City if SA...-AMS elects not to operate the Improvements, either because the Improvements have
reached the end of their practical life as defined in Subsection 3.1.1, or if for any other reason
permitted under this Agreement, SAAMS elects not to operate the Improvements. The Cit,y shall
provide the same notice to ADF&G under the Cooperative Agreement within thirty (30) business
days after receiving the notice from SAAl'vlS. If the City elects not to operate the Improvements,
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 24 of 36
\VA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION AND
MAINTENANCE OF THE ALASKA SEALIFE CENTER
I:\Docs\4337I022\Amended and Restated Agreement 2006.doc
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l:i\f~O 90/91;/60
09/26/06 DRAFT
6.4 Additional Insurance Prov~sions. The City and Indemnified Parties shall be
named as a:1ditional insureds under all insurance policies maintained by SAAMS as required
under Section 6.1, or SAAMS shall obtain an appropriate waiver of subrogation in favor of the
City and the Indemnified Paliies with respect to all insurance policies to effect the same purpose.
The City, ADF&G, and State of Alaska shall be named under casualty insurance required under
Section 6.1 as loss payees on any propen:y loss settlement The City shall be named as an
additional insured under all policies maintained by SAAMS as required under Section 6.2, or
SAAMS shall obtain an appropriate waiver of subrogation in favor of the City with respect to all
insurance policies to effect the same purpose. The City shan be named under casualty insClrance
required under Section 6.2 as loss payee on any property loss settlement
6.5 Tidelands Insurance Requirements. Prior to the use of the Floating Dock,
SAAMS, any Qualified Vessel Operator, and any Other Qualified lJ;er shall furnish the City
with certificates of insurance evidencing:
6.5.1. Marine Protection and IndemnItv. Marine protection and indemnity
insurance, with limits of liability not less than $5,000,000 for all injuries, death, and property
damage per occurrence/aggregate.
6.5.1.2. Commercial General Liability.
insurance, with limits of liability not less than $5,000,000
aggregate for all injuries, death, and property damage.
Commercial general liability
per occurrence and S6,000,000
6.5.1.3. Comprehensive Automobile Liabilitv. Comprehensive
automobile liability insurance covering all owned, hired, and non-owned vehicles \vith Emits of
liability not less than $5,000,000 combined single limits per occunence.
6.5. l.4. \Vorker's Compensation Insurance. \Vorker's compensation
insurance as required by Alaska law. 111e coverage must include employer liability protection
not less than $1,000,000 per person, $1,000,000 per occunence. "INhere applicable, coverage for
all federal acts (i.e., U.S.L. & H. and Jones Act) also must be included.
6.5.1.5. Pollution Liabilitv Insurance. Environmental liability or
pollution legal liability insurance for all bodily injury and property damage to panies other than
SAAMS, Qualified Vessel Operator, or any Other Qualified User, caused by pollution at or
emanating from a tour vessel, with limits of liability not less than Sl.OOO,OOO per
occunence/ aggregate.
6.5.1.6. Insurance Policy Requirements. All insurance polices required
under Section 6.5 shall provide for 30 days' notice of cancellation and/or material change to be
sent to City, SAAMS, and the Qualified Vessel Operator or Other Qualified User, as the case
may be. All such polices shall be written by insurance companies legally authorized or licensed
to do business in the State of Alaska, and acceptable to SAAl'vIS and the City (Best's Rating A
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2.'1., Page 26 of 36
WA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA nON AND
MAINTENANCE OF THE ALASKA SEALlFE CENTER
i:\Docs\43371 022\Amended and Restated Agreement 2006.doc
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(30) days after ~1-te giving of notice thereof by the CilY, unless such default is of a namre that it
cannot be cured within such thirty (30) day period, in which case no Event of Default shall be
declared so long as SAj\~MS shall commence the curing of the default within such thirty (30) day
period and shall thereafter diligently prosecute the curing of same.
7.1.3 Compliance with Health and Life/Safetv Codes. Failure by SA'\MS to
maintain the Site, Improvements, and Tidelands in strict compliance with health and life/safety
codes as required by this Agreement.
7.1.4 Representations or 'Van-anties. If any representation or warrant)' by
Si\AMS contained in this Agreement is false in any material respect as of the date of the making
or furnishing thereof and which would have a material adverse errect on the Site or
Improvements.
7.1.5 Execution, Insolvencv. The sale or SAAMS' interest in the Site or
Improvemems under attacrunent, execution, or similar legal process; or if SAAMS is adjudicated
as bankmpt or insolvent under any state bank,'Uptcy or insolvency law or an order for relief is
entered against SA'\MS under the federal BaILkru.ptcy Code and such adjudication or order is not
vacated within ninety (90) days.
7.1.6 Filing of Bankruptcv Petition The commencement of a case under any
chapter or the federal BaJl.kruptcy Code by or against SAAMS, or the filing of a voluntary or
involuntary petition proposing the adjudication of SAAMS as bankrupt or insolvent, or the
reorganization or SAAMS, or an arrangement by SAAlvIS with its creditOTs, unless the petition is
filed or case commenced by a party other than SAAMS and is w'ithdrawn or dismissed within
ninety (90) days after the date of its filing.
7.1.7 Admission of Inabilitv to Pay Debts. The admission in writing by
SAA....MS of its inability to pay its debts when due.
7.1.8 Appointment of R;;ceiyer or Trustee. The appointment of a receiver or
tmstee for the business or property of SAAlVIS, unless such appointment shall be vacated within
ten (10) days of its entry.
7.1.9 Assignment for Benefit of Creditors. The making by SAAMS of an
assignment for the benefit of its creditors, or if in any other manner SAAMS' interest in this
Agreement shall pass to anot.l1er by operation oflaw.
7.1.10 Dissolution The voluntary or involuntary dissolution of SAAlvlS.
7.1.11 Floating Dock ComtructioIl. Failure by SAAMS to consn-uct, 111
accordance with Subsection 3.6.5 hereof, a Floating Dock on the Tidelands by June 1,2007.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 28 of 36
WATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA nON AND
MAINTENANCE OF THE ALASKA SEALIFE CENTER
I:\Docs\43371022\Amended and Restated Agreement 2006.doc
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09126106 DRAFT
7.2.6 Force Maieure. If by reason of force majeure, SAAMS is unable 111
whole or in part to perform its obligations under this Agreement, SAAMS shall not be in default
under this Agreement during the continuance of such inability. SAAMS agrees, however, to use
all reasonable efforts to remedy with all reasonable dispatch the cause or causes of its failure to
carry out its obligations under this Agreement; provided that the settlement of strikes, lockouts,
and other industrial disturbances shall be entirely within the discretion of Si'LA..MS or its
contractors, as the case may be, and SAAl,'1S and its contractors shall not be required to make
settlement of strikes, lockouts, or other industrial disturbances by acceding to demands of
opposing parties when such course is in the judgment of SAAMS unfavorable to SAAMS. No
event which is reasonably in the control of SAAMS or which SAAMS, through the exercise of
reasonable maintenance or management, could have reasonably prevented from occurring, shall
be considered "force majeure."
7.3 City Events of Default. The following events shall constitute a "City Event of
Default" under this Agreement:
7.3.1 Default of Covenants or Conditions. Default by the City in the
performance or observance of any covenant or condition of this Agreement, which default is not
cured within thirty (30) days after the giving of notice thereof by SAAMS, unless such default is
of a nature that it carmot be cured within such thirty (30) day period, in which case no Event of
Default shall be declared so long as the City shall commence the curing of the default within
such thirty (30) day period and shall thereafter diligently prosecute the curing of same.
7.3.2 Representations or 'Warranties. If any representation or warranty by the
City contained in this Agreement is false in any material respect as of the date of the making or
furnishing thereof and which would have a material adverse effect on the Site, Improvements or
Tidelands.
7.3.3 Execution, Insolve~. The sale of the City's interest in the Site or
Improvements under attachment, execution, or similar legal process; or if the City is adjudicated
as bankrupt or insolvent under any state bankruptcy or insolvency law or an order for relief is
entered against the CilY under the federal Ban..1auptcy Code and such adjudication or order is not
vacated within ninety (90) days.
7.3.4 Filing of BankruJJtcv Petition The commencement of a case under any
chapter of the federal Bankruptcy Code by or against the City, or the filing of a voluntary or
involuntary petition proposing the adjudication of the City as bankrupt or insolvent, or the
reorganization of the City, or an arrangement by the City with iTS creditors, unless the petition is
filed or case commenced by a party other than the City and is withdrawn or dismissed within
ninety (90) days after the date of its filing.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 30 of 36
\VA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA nON AND
MA1NTENANCE OF THE ALASKA SEALlFE CENTER
I:\Docs\43371 022\Amended and Restated Agree!rent 2006.doc
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09/26/06 DRAFT
State of Alaska, Third Judicial District at Kenai, to select the mediator and the court-selected
mediator shall determine what rules shall govern the mediation.
7.6 No Remedv Exclusive. No remedy herein conferred upon or reserved to the City
or SAAMS is intended to be exclusive of any other available remedy or remedies but each and
every such remedy shall be cumulative and shall be in addition to every other remedy herein or
now or hereafter existing at law, in equity or by statute. No delay or omission to exercise any
right or power accming upon an Event of Default shall impair any such right or power or shall be
construed to be a waiver thereof (unless expressly waived by the City or SAAMS), but any such
right or power may be exercised from time to time and as often as may be deemed expedient.
8. Indemnitv and Exculpation
8.1 Limitation of City Liabilitv. Except as provided in Section 8.4, the Indemnified
Parties and the City, its officers, agents, ;;;;d employee~ shall not be liable to SAl\MS for any
damage to the Site, Improvements or Tidelands, or for death or injury of any person or damage
to any property, from any cause; however, this provision shall not affect the liability of any
Indemnified Parties or the City, its officers, agents, and employees on any claim to the extent the
claim arises from the negligence or willful misconduct of that person or entity.
8.2 Indemnity. Except as provided in Section 8.4, SA;\.IVlS shall indemnifY, defend,
and hold harmless the Indemnified Parties and the City, its officers, agents, and employees from
all claims arising from death or injury of any person or damage to any property occurring in or
about the Site, Improvements or Tidelands; however, this provision shall not apply to any claim
to the extent the claim arises from the negligence or willfJI misconduct of the person being
indemnified. SAAMS's obligation to hold the Indemnified Parties and the City, its officers,
agents, and employees harmless shall be limited to the sum that exceeds the amount of insurance
proceeds, if any, received by the person being indemnified.
8.3 Site Conditions. Except as provided in Section 8.4, SAAMS agrees to accept the
Site as it is at the commencement of the Tenn of the Original Agreement. The City shall not be
responsible for the property of any third party that may be on the Site at the commencement of
the Tem1 of the Original Agreement. Except as provided in Section 8.4, the City makes no
covenants, representations, or warranties respecting the condition of the Improvements, or of the
soil or subsoil or any other condition ofthe Site or Tidelands.
8.4 Environmental Matters. SAAMS certifies to the City and agrees as follows:
8.4.1 Knowled2e of Hazardous Substances. S.i'L"'-MS has no knowledge,
based upon SA.A.MS' operations on the site and upon the Phase I Environmental Assessments
attached hereto and incorporated herein as Exhibit "B," of (i) the presence of any Hazardous
Substances on the Site, or (ii) any spills, releases, discharges, or disposal of Hazardous
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A,
WA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERA T!ON
MAINTENANCE OF THE ALASKA SEALIFE CENTER
I:\Docs\4337I 022\Amended and Restated AgreeOllent 2006.doc
Page 32 of 36
AND
57
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09/26/06 DRAFT
9. Sublease or Assignment. SAAMS shall not sublease or assign all or any part of the Site
or the Improvements or any of its interest under this Agreement, except as provided in this
section. However, Sll...l\MS may permit mhers to occupy the interior of the Improvements for
purposes consistent with use of the Site and Improvements for a marine research, rehabilitation
and education facility, including without limitation conducting research and operating
concessions to accommodate visitors.
9.1 Subleasing. SAAMS may sublease any part of the Site subject to all of the
following conditions:
9.1.1 SAAMS shaH provide the City with a copy of the essential terms of each
sublease.
9.1.2 All subleases shall be for uses that are accessory and subordinate to the
use of the Site and the Improvements for a marine research and education facility.
9.1.3 The sublease will not cause the withdrawal by the Internal Revenue
Service of recognition of SAAMS as an organization described in 26 U.S.c. 0501 (c)(3).
9.2 Assignment. Any assignrnent by SAAMS of any of its interest under this
Agreement shall be subject to approval by the City. Such approval shall not be withheld if the
City, in its sole discretion, determines that the assignment will not subject the City to cost or
liability under the Cooperative Agreement or otherwise.
10. Miscellaneous.
10.1 Permitted Encumbrances. During this Agreement, SiL-\MS shall not, without
the prior written consent of the City, which consent shall not be unreasonably withheld, grant a
security interest in (i) all goods, inventory, equipment, and fixtures used or acquired for use on
the Site and Improvements; (ii) all accounts, related to the Site or Improvements, owned as of the
effective date of the Original Agreement or at any time subsequently acquired by SAAMS; (iii)
all general intangibles, related to the Site or Improvements, owned as of the effective date of the
Original Agreement or at any time subsequently acquired by SAAMS; and (iv) all proceeds of
such goods, inventory, equipment, and fixmres, accounts, and general intangibles.
10.2 No Implied Waiver. In the event any agreement, covenant, or condition
contained in this Agreement should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other breach hereunder.
10.3 Successors in Interest. This Agreement shall be binding upon and inure to the
benefit of the respective successors and assigns of the parties hereto.
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 34 or 36
WATERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION AND
MAINTENANCE OF THE ALASKA SEALlFE CENTER
I:\Docs\43371 022\Amended and Restated Agreement 2006.doc
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09/26106 DRAFT
10.10 Severability. In the event any provision of this Agreement shall be held invalid
or unenforceable by any court of competent jmisdiction, such holding shall not invalidate or
render unenforceable any other provision hereof.
10.11 Integration and Modificati@ This document contains the entire agreement of
the parties hereto. All negotiations, statements, or representations, warranties, and assurances,
whether oral or written, which are in any 'way related to the subject matter of this Agreement,
and the j:erformance of either party hereto, are merged and integrated into the tem1S of this
document This Agreement may not be modified or amended except by a writing signed by both
parties hereto, and any proposed amendment or modification is without effect until reduced to a
writing signed by both parties.
10.12 Additional Documents. The parties agree to execute any additional documents
which may be necessary in order to effectui'\ce the terms of this Agreement
1 0 .13 Relationship of Parties. The City and SAAMS are distinct and independent
corporate entities. The parties understand and agree that SAAMS was incorporated as a private
nonprofit corporation for the purpose, among others, of developing, constructing and operating a
marine research, rehabilitation and education institution to be called the Alaska SeaIife Center.
This institution was to be operated within the facility now defined in this Agreement as the
Improvements, which though ovmed by the City due to the requirements of the Cooperative
Agreement and EVOS Requirements, was built for the specific purpose of housing the institution
that SA.A.MS was to operate. Nothing contained herein shall be deemed or construed to make the
parties hereto partners or joint venturers, or to render either pmiy liable for any of the debts or
obligations of the other, except as otherwise described in this Agreement.
10.14 Other Activities. Excepi as this Agreement expressly provides otherwise,
nothing in this Agreement shall restrict SAA.MS in engaging in activities other than the operation
of the Site, Improvements and Tidelands, including without limitation owning, leasing or
managing real property other than the Site, Improvements and Tidelands, and entering into
contracts with other parties in furtherance of its corporate purposes, and nothing in this
Agreement confers upon the City any right or obligation to supervise or approve SAAMS'
engaging in any such other activities, or subjects SAAMS to any obligation to submit to such
supervision or approval. Not\vithstanding the above, SAAMS represents and warrants to the
City that SAAMS will not take any actio;}, or fail to take any action, that \vill have a material
adverse effect on SAAMS' performance of its primary corporate purpose and mission as
described in Subsection 2.2.10 of this Agreement.
10.15 Use of the Name "Alaska SeaLife Center". The City and SAAMS recognize
and ac1<-l1owledge that the name "Alaska SeaLife Center" is both a defined tem1 in the
Cooperative Agreement and a registered service mark of SILA.MS under which SAAMS does
business at the Site, Improvements and Tidelands. The City acknowledges and agrees that
AMENDED AND RESTATED AGREEMENT FOR LEASE OF TRACT 2A, Page 36 of 36
WA TERFRONT TRACTS, AND ADJACENT TIDELANDS, AND THE LEASE, OPERATION AND
MAINTENANCE OF THE ALASKA SEALIFE CENTER
!:"Docs\43371 022\Amended and Restated Agreement 2006.doc
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09126/06 DRAFT
E:iuillBIT "A"
LEGAL DESCRlPTION OF PROPERTY
Tract 2A, WATERFRONT TRACTS, according to Plat No. 95-
Seward Recording District, Third Judicial District, State of Alaska.
EXHIBIT A
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOULTTION 2006-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MA...NAGER TO ENTER INTO A
LEASE AJVIENDM...ENT WITH THE SEWARD CHAlvIBER OF COlVIJVlliRCE,
CONFERENCE A1~D VISITORS BUREAU, INCORPORATED TO EXTEND
THE TERlVI OF THE LEASE FOR THE LEASE OF LOT 4, FORT
RAYMOND SUBDIVISION AS SHOWN ON PLAT NO. 86-10, SEWARD
RECORDING DISTRICT, THU1J) JUDICIAL DISTRICT, STATE OF
ALASK4.., CONTAINING 43,778 SQUARE FEET, MORE OR LESS
WHEREAS, the Seward Chamber of Commerce, Conference and Visitors Bureau,
Incorporated ("Lessee") seeks to extend the term of its existing lease agreement ("Lease") with the
City of Seward for Lot 4, Fort Raymond Subdivision as shown on Plat No. 86-10, Seward Recording
District, Third Judicial District, State of Alaska, containing 43,778 square feet, more or less; and
WHEREAS, the current lease has been in effect since October 2005.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. It is in the public interest to enter into an amendment to the Lease dated October
2005 ''lith the Seward Chamber of Corn:cnerce, Conference and Visitors Bureau, Incorporated
extending the ternl ofthe Lease.
Section 2. The City Manager is hereby authorized to enter into a lease amendment in
substantial form as attached hereto and incorporated herein by reference, and to make such changes
to the attached Lease Amendment No.1 as necessary to finalize the Lease amendment between the
paIiies but without changing the substantial terms and conditions as described therein.
Section 3. This resolution shall take effect thirty (30) days after its adoption and posting
PASSED AND APPROVED by City Council ofthe City ofSe\vard, Alaska, this 9th day
of October, 2006.
THE CITY OF SEWARD, ALASKA
Vanta Shafer, Mayor
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LEASE AlvIENDMENT NO.1
THE CITY OF SEWARD, ALASKA, a home rule municipal corporation, organized and existing
under the laws of the State of Alaska, hereinafter referred to as "CITY," whose address is PO Box 167,
Seward, Alaska 99664 and THE SEW A-"RI> CHAMBER OF COMMERCE, CONFERENCE AND
VISITORS BUREAU, INCORPORATED, whose address is P.O. Box 749, Seward, Alaska 99664,
hereinafter referred to as "LESSEE" wish to amend that certain Lease effective , 2005, made
between CITY and LESSEE, covering the real property described as Lot 4, Fort Raymond Subdivision, Plat
No. 86-] 0, Seward Recording District, Third Judicial District, State of Alaska, as follows:
ITEM 1. The name of Lessee is the Seward Chamber of Commerce, Conference and Visitors
Bureau, Incorporated.
ITEM 2. Section 2.1 is hereby amended w change the Lease Tem1 termination date from November
1, 2010 to November 1, 2021 as follows:
Lease Term. The term of this LEASE (the "Lease Term") shaH be in accordance with
CITY"S Resolution Nos. 2005- and 2006- . The Lease Term shall commence
- -
October 1, 2005 (the "Effective Date") and shall run for approximately 16 years from the
Effective Date, ending at midnight on N Dvember ], 2021.
ITEM 3. Section 2.3 is hereby deleted and replaced with the following amended language to aHow
possible extension of the Lease Term:
Option to Extend LESSEE shall have the right to extend the Lease Term for one additional
5-year period provided that:
a) LESSEE exercises its option to extend at least 180 days prior to the expiration of the
Lease Term; and
b) LESSEE is not in default under any term or provision of this LEASE; and
c) LESSEE shall exercise its option to extend by sending written notice thereof in
accordance with Article 33 oft11is LEASE.
In all other respects, the Lease is to remain unchanged and in full force between the undersigned parties.
IN WITNESS WHEREOF, the parties hereto have executed this document and it is effective upon
the effectiveness of Resolution 2006-
LEASE AMENDMENT NO. I
l<fovember 2006
-Page 1 of 3-
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STATE OF ALASKA
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THIRD JUDICIAL DISTRICT
TB.1S 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 Clark Corbridge, known to me
and to me known to be the City Manager for the Cil:y of Seward, Alaska, and authorized to execute documents
on its behalf, a..nd is the individual named in and who executed the foregoing document on behalf of the City
of Seward for t,'1e uses a..l1d purposes therein set forth.
WITNESS my hand and notarial seal the day and year first hereinabove written.
NOTARY PUBLIC IN AND FOR ALASKA
My Commission Expires:
STATE OF ALASKA
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THIRD JUDICIAL DISTRICT
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TillS IS TO CERTIFY that on this '-i day of '-~ ('Jo l?",~' ~ ,2006,betere
me, the undersigned, a Notary Public in and for ~ the State of Alaska, personaliy appeared
\llw[l. Uo U1.\<Jknown to me and to me known [0 be the t:'k.0..Axhv 2 D ,\ C c:..:\:--t".~ for the Seward
Chamber of Commerce, Conference and Visitors Bureau, Incorporated, and authorized to execute documents
on its behalf, and is the individual named in and who executed the foregoing document on behalf of the
corporation for the uses and purposes therein set forth.
WITNESS my hand and notarial seal tbe day and year first her~bove written.
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Return to:
City of Seward
Harbor Dept.
PO Box 167
Seward, AK 99664
LEASE A!VlENDMENT NO. 1
November 2006
-Page 3 of 3-
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TABLE OF CONTENTS
ARTICLE 1 - LEASED LA-ND.................................................................................................... 1
1.1 Description of Leased Land ..................................................................................... 1
1.2 Covenant of Quiet Enjoyment,: Warranty of Title ................................................... 1
1.3 Survey of Leased Land ............................................................................................ 2
1.4 Property Accepted............... ............... ...................... .......... ....... ............ ... ......... ...... 2
1.5 Permits .................. ................. ...................................... ............. ..... ................... ...... 2
1.6 P fatting...................... ............. ............ ....... .............................................................. 2
ARTICLE 2 - LEASE TERM......................................................................................................3
2.1 Lease Term.. .... ...... ......... ......................... ................................................................ 3
2.2 Lease Subject to Referendum .................................................................................. 3
2.3 Options to Extend.................................................................................................... 3
ARTICLE 3 - RENi AL RATE ...................................................................................................3
3.1 Initial Rental Rate ................................................................................................... 3
3.2 Rental Adjustments......... .............. ................ ............................... .............. .............. 4
3.3 Procedure for Rental AdjustmenL..........................................................................4
3.4 Effect of Late Appraisal by CITy............................................................................ 4
3.5 Appraisal by LESSEE ............................................................................................. 5
3.6 Effictive Date of Adjusted Rental Rate ...................................................................5
3.7 Interim Rental Adjustments......m............................................................................ 5
3.8 Late Payment Charge ............................................................................................. 6
ARTICLE 4 - USE OF LEASED LAND .............................................m.................................... 6
4.1 Use of Leased Land................................................................................................. 6
4.2 Obligations of LESSEE ................................................................................ ...... ..... 6
4'" N" p,.(; 'IR' h [jT~~P,bl. 1':' 'Z" ,~
.~ 0 rtjerentla Ig ts to "'" U. IC raCl ItieS ..................................................... !
4.4 Adequacy of Public Facilities ................................................................................. 7
4.5 TariffS and Other Service Fees ............................................................................... 7
4.6 Time for Payment of Utilities and Taxes................................................................. 7
4.7 Other Uses .................. ............ .............................. ............. ........ ...... ....................... 8
ARTICLE 5 - UTILITIES A.ND RIGHTS OF ACCESS.......................................................... 8
5.1 Utilities ........... .................... ........... .............. ........ ............... .................. ....... ...... ...... 8
5.2 Third-Party Improvements ......................................................................................8
5.3 Easements ............................. .................... ........... .................. .... ........... ........... .... ... 9
5,4 Care of Leased Land............................................................................................... 9
- 5 Ot' A . R' h "C'17"";" Q
). ner J"1ccess Ig ts oJ 111 .............................:...................................................../
ARTICLE 6 - CONSTRUCTION BY LESSEE....................................................................... 10
6.1 Improvements on Leased Lmzd .................:........................................................... 10
6.2 Cm'Review of Construction ............................................................................... 11
ARTICLE 7 - RETURN OF LEASED LAr.'D/SITE CONDITIONS ................................. 11
7.1 Return of Leased Land in Original Condition ...................................................... 11
7 ') R ,{' r dr" rift-- r " C d" , ;
._ eturn oJ ~ease ~and In -'-''C. e. enl on ItlOn ..................................................... '"
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
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LEASE AGREEMENT
TillS LEASE AGREEMENT (the "LEASE") is made by and between t.he CITY OF
SEW A-RD (the "CITY"), a ml.micipa! corporation located in the Kenai Peninsula Borough, State of
Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and SEWARD CHAMBER
OF COMMERCE, CONFERENCE Arm VISITORS BL"'REAU, INCORPORATED, a
nonprofit corporation (the "LESSEE"), whose mailing address is P.O. Box 749, Seward, Alaska
99664.
WHEREAS, LESSEE has indicated its desire to lease Lot 4, Fort Raymond Subdivision, Plat
No. 86-10, Seward Recording District, Third Judicial District, State of Alaska;
WHEREAS, the City Council ofSevvard has determined that lease ofthe Leased Land (as
defined below) to LESSEE for the purposes described herein would be in the public interest; and
WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire
burden of compliance with present or future environmental regulations or controls with respect to
LESSEE's operations on the Leased Land during the lease term.
NOW THEREFORE, for and in consideration of the mutual promises and covenaIlts
hereinafter contained, the parties hereto agree as follows:
ARTICLE :[ - LEASED LAND
1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The
Leased Land is described as follows:
Lot 4, Fort Raymond Subdivision as shown on Plat No. 86-10, Seward Recording District
~ ,
Third Judicial District, State of Alaska, containing 43,778 square feet, more or less (the
"Leased Land").
The Leased Land is also depicted on ~d1e attached Exllibit A, which is incorporated herein by
reference.
1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrfu"'1CeS as of the date
hereof, any reaso:nable restrictions imposed on t.he Leased Land as part of recording of a plat
by CITY, and 1i~e provisio11s of this LEASE, CITY hereby covena..l1ts and warrants that:
a) LESSEE shall have the quiet enjoyment and possession of the Leased La..l1d for the
full term of this LEASE; and
Lease Agreement between City of Seward a"d Seward
Cham ber of Commerce
7 ')'December 2005
. <' Page] of28
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ARTICLE :2 - LEASE TERlVI
2.1 Lease Term. The term oftms LEASE (lhe "Lease Term") shall be in accorda..T1ce ",ith CITY's
authorization Resolution No. 2005-85 (Lhe "Resolution"). The Lease Term shall commence
on the date this LEASE is signed by CITY and that date shall be the effective date of tms
LEASE (the "Effective Date"). The Lease Term shall nUl for 5 years from the Effective
Date, ending at midnight on November 1, 2010. Except for extensions as provided in
Section 2.3 below, this LEASE is not subject to renewal.
2.2 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the
Ch<Lrter and Code of CITY this LEASE may be voided by referendlL11l. LESSEE agrees that
if the Resolution approving this LEASE is Lhe subject of a referendum petition filed with the
Clerk of CITY, LESSEE shall have no ri~hts under this LEASE unless and until the
Resolution is approved by the voters of the City of Seward, and LESSEE shall not be entitled
to any da..mages or any other relief against CITY in the event Lhe Resolution is not so
approved.
2.3 Options to Extend. LESSEE shall have Lhe right to extend the term oftms LEASE for two
(2) additioml five (5) year periods (cumulative extensions not to exceed ten (10) yeacTS),
provided that:
a) LESSEE exercises any applicable option to extend at least one hllildred and eighty
(180) days prior to the expiration of the t.."'len current lease term;
b) LESSEE is not in default llilder any term or provision of this LK",SE;
c) LESSEE shall exercise its options to extend by sending written notice thereof in
accordance with Lhe provisions of Article 33 ofLhis LEASE; and
d) The City Council sh..all approve each extension by resolution.
ARTICLE 3 - RENTAL RATE
3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE Llrrough June 30,
2006, tt'1e mmual rental rate for the Leased Land shall be set at Zero dollars ($0.00). Rent
shall be payable quarterly in advance upon the Effective Date of this LEASE (prorated for
the balance of me current quarter) ac"1d therea...fl:er on or before the 20th day of t.he month
beginning each calendar quarter: Jarmary 20, April 20, July 20 and October 20. The amount
of each quarterly payment shall be one-qua..rter of the 31u1Ual rental rate as initially established
or later adjusted under this Article 3; provided, however, there shaH be no rent due mrHler
this LEASE so long as the Leased Land is used for the operation of a chamber of
commerce office and visi.tor information center. If the Leased Land is used in a
manner not permitted by this LEASE or not approved by the CITY in writing, rent
Lease Agreement between City of Seward and Seward
VJ .chamber of Commerce
& J December 2005
Page 3 of28
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a) The Leased Land is to be cornpletely cleaned fu"1d restored to its original condition,
that is, the condition existing prior to this LEASE or i..n better condition upon
termination of t.llls LEASE.
b) LESSEE agrees to prohibit the use, keeping, storage, or disposal or Hazardous
Materials on the Leased Land except as permitted in Article 19 of this LEASE.
c) LESSEE shall not use the Leased Land in a.l1Y ma1IDer or constmct any racilities
thereon which would inhibit the use of adjacent or other lands.
d) LESSEE shall continue to operate a visitor information center on the Leased Land.
Any changes to t.his site require CITY approval, through the City Manager, prior to
additional constmction. LESSEE's failure to obtain CITY approval or any changes to
the site development plan or LESSEE's failure to install the improvements according
to the site development plan shall be a LESSEE Act of Default under this LEASE.
e) So long as this LEASE is in effect, the LESSEE win allow CITY to place and
maintain public information signs, including visitor information signs, on the Leased
Land in the manner deemed appropriate by the CITY.
4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any
exclusive rights to use any public facilities constructed or operated by CITY. LESSEE will
be subject to any tariffs, procedures, mles and regulations of CITY concerning the use of
such facilities as they may now exist or from time to time be amended, and LESSEE shall not
be entitled to any exclusive use.
4.4 Adequacy afPublic Facilities. CITY makes no representations or warranties as to the fitness
of a.l1Y particular part or the whole of CITY's public facilities for the uses intended by
LESSEE, and LESSEE has inspected those racilities and has satisfied itself t.hat the facilities
are sufficient for the intended uses by LESSEE. CITY makes no representations or
warranties of any nature with respect to the commercial practicability or accuracy of fu'lY
information provided by CITY.
4.5 TariffS and Other Service Fees. CITY shall have the right to make amendments to its t<hriffs,
regulatioI1.S a.l1d scheduled fees from time to time even if those adjustments shall cost
LESSEE more for its operations or use of public facilities, and CITY is free to do so
provided only that it does not impose any greater burden or higher rate upon LESSEE tha\"1
upon any other similar user of the public facilities.
4.6 Time for Payment of Utilities and Taxes. LESSEE will pay ror utilities and taxes related to
operations on the Leased Land and LESSEE's interest in this LEASE and improvements
thereon, if any, before such obligations become delinquent; provided, that LESSEE may, it!
good faith and before such delinquency, contest fu"1Y such charge or assessment.
Lease Agreement bet'.veen City of Seward <Ll1d Seward
Chamber of Commerce
December 2005
77 Page 7 of28
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a) All such matters shall be lL111ited to the Lease Term a,.'1d shall terminate upon
termination of this LEASE for 'whatever reason.
b) Any such matters of a permanent nature extending beyond the Lease Term shall not
be granted without the prior "",Titten approval of CITY. In any of the foregoing
instances referred to in this Section, CITY shall be without expense therefore, and the
cost and expense thereof shaH be borne solely by LESSEE.
c) At the expiration of Lhe Lease Term (including any extended period) third-party
improvements on the Leased Land other than portable equipment shall become the
property of CITY without the payment of any compensation to LESSEE.
5.3 Easements. In order to provide for li'1e orderly development of the Leased Land and adjacent
lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage,
gas, power line a.."1d other easements and dedications and similar rights be granted or
dedicated over or within portions oftche Leased Land. As additional consideration for this
LEASE, CITY and LESSEE each shaH, at the request of the other, join with each other in
executing and deliverLl1g such documents from time to time and throughout the Lease Term
as may be appropriate, necessary, or required by the several governmental agencies
(including the City of Seward), public utilities and other users or tenants of CITY land for Lqe
purpose of granting such easements and dedications; provided, however, that such easements
and dedications and similar rights do not unreasonably interfere with LESSEE's operations.
The costs of locati.llg or relocating any public easements or restrictions of record including
any relocation of public road, railroad, utility, or other easements shall be at Lhe sole cost and
expense of the party requesting the relocation. CITY shaH not refuse reasonable requests for
such relocations provided those relocations do not interfere with or inhibit the overall
development of CITY property or other public property. Any easements or rights of access
granted to LESSEE by CITY need not be exclusive to LESSEE.
5.4 Care of Leased Land. LESSEE, at its own cost and expense, shall keep the entire Leased
Land and all buildings and improvements which at any time may be situated thereon in good,
clean and tide condition and repair during the Lease Term.
5.5 Other Access Rights of CITY. CITY and its agents or representatives shall have the right to
enter into and upon the Leased Land duri.ng reasonable hours for Lhe purpose of inspecting
the Leased Land and all buildings and improvements thereon.
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
C'] '.Ci,."
6 _ Page 9 of28
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g) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for
any improvements constructed or effected by LESSEE on the Leased Land.
h) LESSEE shall comply with all federal, state and local statutes and regulations with
respect to such construction, including but not limited to all applicable building,
mechanical, and fire codes.
6.2 CITY Review of Construction. CITY shall have the right to review initial plans, induding
Lhose supplied to CITY under Section 6.1 hereof, and any future changes or additions to
LESSEE's facilities on Lhe Leased La.'ld, by reviewing the desi~l1 thereof prior to the
commencement of construction. CITY shall have the right to comment upon that design a.11.d
to require LESSEE to ma.ke reasonable changes so as to avoid interference with public
operations, but the exercise of these rights shall not imply any obligation to do so nor any
obligation to do so nor an.y obligation to do so in a particular way. LESSEE shall construct
the facility in accorda.nce 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
La.l1d without encroaching upon any land, easements, rights-of-way, or setback requirements.
LESSEE shall obtain the usual and customary performance guarcu,tees from its contractors,
and CITY shall be named as an additional insured.
ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS
7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1
herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased
Land to CITY in the same condition as at the commencement this LEASE, subject to
normal, non-abusive use. The Leased Lal1d shall be free of all Hazardous Materials and
contamination arising out of or resulting from or occurring during LESSEE's operations
or use of the Leased Lcu,d during this LEASE.
7.2 Return of Leased Land in Different Condition. Notwithstanding Lh.e provisions of Section
7.1 above, upon termination ofthis LEASE for any reason LESSEE may return the Leased
Land in a re-contoured or graded clean, safe, and stable condition different from its original
condition provided CITY grants written approval of LESSEE's plans for development ofLhe
Leased Land contours, including its pla11s for material extraction and final grade.
ARTICLE 8 - FORCE lVl.4..JEURE
In the event either LESSEE or CITY is delayed from perfonna.nce of any of its obligations
under tl1js LEASE due to acts of nature, acts of the enemies of the United States of A'11erica,
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
X i Page 11 of28
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judicial action is to cause a stoppage, interruption or threat to the activities of any person or
entiry other than those of LESSEE.
9.5 Failure by LESSEE to operate a visitor information center on the Leased Land and place the
facilities in service bv the Effective Date of the LEASE.
- .
9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public
rights of way clear.
ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE
Whenever an act of default by LESSEE shall have occurred, a.l1d any applicable period for
giving notice a.l1d a.l1Y opportu..mty to cure shall have expired, CITY shall have the folloV\ring rights
&ld remedies all in addition to any rights and remedies that may be given to CITY by statute,
cornman law or otherwise:
10.1 CITY may distain for rer..I due any of LESSEE's personal property which comes into CITY's
possession. This remedy shall include the right of CITY to dispose of personal property
distrained in any commercially reasonable manner. It shall be conclusively presumed that
compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS
45.29.601-.628) with respectto sale of property shall be a commercially reasonable disposal.
10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal
property of LESSEE which CITY has waived its right to distrain under Section 10.1 above,
remove all personal property of LESSEE from the Leased La.nd. Such personal property may
be stored in place or may be removed and stored in a public warehouse or elsewhere at the
cost of LESSEE all without service of notice or resort to legal process, all ofwmch LESSEE
expressly waives.
10.3 In addition to the above, CITY may:
a) Declare t.his LEASE terminated;
b) Collect any and all rents due or to become due from subtenants or other occupants of
the Leased Land;
c) Recover from LESSEE, vihether this LEASE be terminated or not, reasonable
attorney's fees and all other expenses incurred by CITY by reason of the breach or
default by LESSEE;
d) Recover an amount to be due immediately on breach equal to Lhe unpaid rent for the
entire remaiJ:ljng term of this LEASE or if rent wc..s waived under Section 3.1, recover
&1 aiTIount due immediately equal to the amount of rent that would othenvise have
Lease Agreement between City of Seward a-l1d Seward
Chamber of Commerce
December 2005
83 Page 13 of28
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11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding,
LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly
remove, in no event later than ninety (90) days from the termination of the LEASE, trade
fixtures fuid equipment from the Leased Land provided that LESSEE shan repair any
damages to the Leased Land caused by such removal.
ARTICLE 12 - ASSIGNMENT OR SlJBLEASE
12.1 Assignment of Lease or Subleasing.
a) The parties recognize that this LEASE has been determined to be in Ll-te public
interest by the City COlLT1cil of CITY for t..h.e 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 wTitten consent, in CITY's sole discretion.
b) No assignment or sublease shall be permitted unless approved in wTiting by CITY
and by resolution of the City CounciL Any sublease shall be expressly subject and
subordinate to this LEASE and the rights of CITY hereunder. CITY may elect to not
approve any proposed assignment or sublease which may result in a business or
activity which, iI. the CITY's sole discretion, is not desirable or compatible wi.th
CITY's comprehensive plan am:!/or other applicable land use regulations.
12.2 Assignment of Lease for Security. Nonvit..hstanding Section 12.1 above, LESSEE may
assign, encumber or mortgage its interest in this LEASE or improvements on the Leased
Land, by deed oftrus! or other security instru..'1lent, to an institutional lender ("Lender") for
development of or operations on the Leased Land, provided that Lender shall be subject to all
obligations of LESSEE under the temlS ofthis LEASE upon foreclosure. CITY shall fumish
Lender, at the address provided to CITY by Lender in writing, with notice of any default or
breach of LESSEE under this LEASE. Lender shall have the right (vvithout being required to
do so and without thereby assuming the obligations of LESSEE uflder this LEASE) to make
good such default or breach within thirty (30) days after wTitten notice specifying such
breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default"
shall exist until expiration of thirty (30) days after such notice is furnished to Lender;
provided,
a) If Lender, with respect to any default or breach olher than a failure to make any
required payment of rent or other money, shall undertake within thirty (30) days after
notice to cure the default or breach and shall diligently and in good fait..h proceed to
do so, CITY may not terminate this LEASE or relet t..he Leased Land unless Lender
fails to cure the default or breach within a reasonable period of time thereafter; a11d
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
85 Page 15 of28
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coverage for personal injury, bodily injurj, and properrj da.rnage or destruction. Coverage
under such policies of insurance shall include collapse and underground property dan1age
hazards. Contractual liability insurance coverage in the a..'TIount of not less thfui T\VO
MILLION DOLLARS ($2,000,000) is also required.
LESSEE shan obtain o\-vned and non-owned automobile liability insurmlCe with limits of
liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined
single limit for bodily injury and propelTY da.7Jlage.
LESSEE shall also maintain workers' compensation insurance as required u;1der Alaska 1m"!.
The mimmum mnounts and types of insurance provided by LESSEE shall be subject to
revision at the sole discretion of CITY in accordance with standard insurance practices, in
order to provide continuously throughout the term of this LEASE and any extensions hereof,
a level of protection consonant with good business practice and accepted sta.l1dards in 1..he
industry. Such factors as changes in the type of or extent of use ofthe Lease Land, increases
in the cost of living, im1ationa.ry pressures, and other considerations, shall be utilized in
assessing whether the minimum insurance requirements should be increased. CITY shall
notifY LESSEE of any required increase in insurance coverage.
All insurance policies shall provide for thirty (30) days' notice of c8Ilcellation a.l1dJor material
change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All
such policies shall be ",Titten by insurance companies legally authorized or licensed to do
business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY
shall be listed as an additional insured u.'lder all insurance policies. LESSEE shall furnish
CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance
required herein prior to 1..he OCCUpfu""lCY of the Leased Land or operation by LESSEE.
Insurance policy deductibles are subject to approval by CITY. Not.hing herein contaitled
shall prevent LESSEE or CITY from placing and maLTJ.tai...7J.ing at CITY's or LESSEE's own
individual cost and expense, additional or other insurance as may be desired. The minimum
insurance requirements under this LEASE shall not act to limjt LESSEE's liabiliry for any
occurrence and shall not EImt LESSEE's duty to defend and indemnifY CITY for claims
related to 1..his LEASE or the Leased Land.
15.2 Subrogation Rights Waived To the extent permitted by law, LESSEE hereby releases CITY,
its elected and appointed officials, employees and volunteers and others working on behalf of
CITY from any a.T1d all liability or responsibility to LESSEE or anyone claiming t.h..rough or
under LESSEE by way of subrogation or otherwise, for any loss of any kind (including
dan1age to property caused by fire or any other casualty), even if such loss shall have been
caused by the fault or negligence of the CITY, its elected or appointed officials, employees or
volunteers or others working on behalf of the CITY. This provision shall be applicable fuid
in full force and effect only with respect to loss or damage occurring during the time of
LESSEE's occupancy or use (including LESSEE's occupa.ncy or use prior to the Effective
Lease Agreement bet. ween City of Seward and Seward
Chamber of Commerce
December 2005
87 Page17of28
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Dollars and Noll OOs ($50,000) (exclusive of interest and costs). All demands for
arbitration and all a.TJ.swering statements thereto that include any claim must contain a
statement that the total sum or value in controversy, as alleged by the party making
such dema..l1d or a..l1swering statement, is not more than Fifty Thousa..l1d Dollars and
Noll OOs ($50,000.) The arbitrator \\Iill not have jurisdiction, power, or authority to
consider or ma..ke findings (except to deny jurisdiction) concerning any claim,
counterclaim, dispute or other matter in question where the a..mount in controversy of
any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars
and Noll OOs ($50,000). The costs and expenses of arbitration shall be shared equally
by the pa..rties, and each party shall bear its own attorney's fees and costs.
b) Arbitration procedures shall be applicable only to contract, negligence, and similar
claims mising from or related to this LEASE, fuld shall not be used to resolve or
determine any claim based upon fraud, intentional misrepresentation, nor any claim
based on conduct that is a felony crime in the State of Alaska.
c) Written notice of requests for arbitration of disputes may be served by either party to
this LEASE upon t.he other party. Arbitration of any dispute or claim shall be
determined by a single arbitrator selected from a list of not less tha..n five arbitrators
obtained from t.1:le presiding Superior Court Judge or other appropriate judicial officer
in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less tha.'1 five
(5) years legal experience in the State of Alaska prior to appointment; and (b) such
legal experience include substantial experience "vith long-term cornmercial real
property transactions. Each paiT)' shall be provided wit.l} a copy of the list fu"1d shall
be afforded a maximum of ten (10) working days to become familim with t.1.e
qualifications oftne prospective arbitrators. The arbitrator shall be selected by each
party, commencing with the party demanding the arbitration, stri.king one name from
the list until only a single nmne remains.
d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location
as the parties may agree. Each party shall produce at the request of the other party, at
least thLrty (30) days in advance of such hearing, all documents to be submitted at t.he
hea..ri.ng and such ot.her documents as me relevant to the issues or likely to lead to
relevant information.
e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law,
and the written decision shall be supported by substantial evidence in LlJe record.
Failure to apply Alaska law, or entry of a decision that is not based on substa.'1tiai
evidence in the record., shall be additional grounds for modifying or vacating all
arbitration decision.
Lease Agreement betv,een City of Seward and Seward
Chamber of Commerce
8 Cl December 2005
<J Page]9 of28
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improvement by reason of a change in LESSEE's use ofthe Leased Land or operations there
from, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse
CITY for such work at the option of CITY.
ARTICLE 19 - ENVIRONMENTAL CONCERl\TS
19.1 Hazardous Materials.
a) Condition of Site. LESSEE has had full opportunity to exa.rnine the site for the
presence of a.l1Y Hazardous Material and accepts the site in "as is" condition.
LESSEE Inay elect, at LESSEE's sole cost, to conduct a baseline soils test prior to
execution of this LEASE.
b) Release of CITY. Any other provision of this LEASE to the contrary notlvlth-
standing, LESSEE releases CITY from any and all claims, demands, penalties, finEs,
judgments, liabilities, settlements, damages, costs or expenses (including, without
limitation, attorney's fees, court costs, litigation expenses, a.l1d consulta.l1t and expert
fees) arising prior to, during, Bud after the term ofthis LEASE, and resulting from the
use, keeping, storage or disposal of Hazardous Material on the Leased La11d by
LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's
operations at the Leased Land or the operations of its predecessors in interest at the
Leased Land except for those claims a.nsLl1g out of CITY's sole negligence or
intentional misconduct. This release includes, without limitation, any &?J.d all costs
incurred due to any investigation of the Leased Land or any clea...?J.up, removal or
restoration mandated by a federal, state or local agency or political subdivision or by
law or regulation.
c) Use of Hazardous Materials on the Site.
i) LESSEE shall not cause or permit any Hazardous Material to be brought
upon, kept or used in or about the Leased Land except for such Hazardous
Material as is necessary to conduct LESSEE's authorized use ofLhe Leased
Land.
ii) .A.ny Hazardous Material permitted on the Leased Land as provided L'1. 111is
paragraph, and all containers therefore, shall be used, kept, stored and
disposed of in a malIi1.er that complies with all Environmental Laws or other
laws or regulations applicable to such Hazardous Material.
iii) LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked
or emitted, any material into the atmosphere, ground, ground water, sewer
system or any body of water, if such material (as reasonably determined by
the CITY, or any governmental authority) does or may, pollute or
Lease Agreement between City of Seward and Seward
Chamber of Commerce
91 December 2005
- Page 21 of28
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f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any
substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any
Environmental Law. Hazardous Material includes any and all material or substaTlces
which are defined as industrial waste hazardous waste, extremely hazardous waste or
a hazardous substance lLl1der llilY EnviroI1.mental Law. Notwithstanding any statutory
petrolemn exclusion, for the purposes oftms LEASE, the term Hazardous Material
includes, without limitation, petrolemn, including crude oil or any fraction thereof,
petroleum soaked absorbent material and other petroleum wastes.
g) Environmental Law Defined. As used in this LEASE, Environmental Laws include
any and aHIocal, state and federal ordinances, statutes, and regulations, as now in
force or as may be amended from time to time, relating to the protection ofhumal1
health and the environment, as well as any judgments, orders, injunctions, awards,
decrees, covenants, conditions, or other restrictions or standards relating to same.
Environmental Laws include, by way of example and not as a limitation of the
generality of LfJ.e foregoing, Alaska Statutes Title 46, the Resource Conservation and
Recovery Act of 1976, the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and
Reauthorization Act of 1986.
19.2 Permits and Reporting.
a) Permits Required by Other GovernmentalAgencies. LESSEE shall obtain aU peI1l1its
or approvals required by any applicable law or regulation. Copies of all such permits
shall be provided to CITY prior to LESSEE commencing work under this LEASE.
LESSEE shan promptly make all reports to any federal, state or local government or
agency required by any permit or Environmental Law, including reports of any spill
or discharge of Hazardous Material. The CITY, through the City Manager, may
order LESSEE to immediately cease any operations or activities on the Leased Land
if the S&'11e is being ca;ried out 'vvit.'1out necessary permits, in violation of the terms of
any permit or Environmental Law, or contrary to this LEASE.
b) Correspondence With and Reports to Environmental Agencies. LESSEE shall
iw.mediately provide CITY with copies of all correspondence and notice, including
copies, of all reports between LESSEE and any state, federal or local goveITI.-rnent or
agency regulating Hazardous Material which relates to LESSEE's operations on or
use of the Leased Land.
ARTICLE 20 - ESTOPPEL CERTIFICATES
Either party shall at any time and from time to time upon not less than ten (10) days' prior
written request by the other party, execute, acknowledge, and deliver to such party, or to its designee,
Lease Agreement between City of Seward and Seward
Chamber of Commerce
December 2005
Page 23 of28
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Tbis LEASE shall be governed by, construed and enforced in accordance with the laws ofllie
State of Alaska. The terms of this LEASE are subject in all respects to the Charter alld Code of
Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter aInended,
including without limitation, Chapter 7.05 of'l~e Seward City Code.
ARTICLE 28 - P A...RTIAL INV ALInITY
If any provision of tbis LEASE is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the provisions shall remain in full force 3-nd effect and shall in no
way be affected, impaired or invalidated.
ARTICLE 29 - RELATIONSHIP OF PARTIES
NOLhing contained in this LEASE shaH be deemed or construed by the parties or by any third
person to create the relationship of principal a..,d agent or of partnership or of joint venture or of 3-11Y
association between CITY and LESSEE; and neither Lhe method of computation of rent, nor 3-ny
other provisions contained i.'1 this LEASE nor any acts of the parties, shall be deemed to create aI1Y
relationship between CITY and LESSEE other than the relationship oflessee and lessor.
ARTICLE 30- INTERPRETATION
The l&'1guage in all pM:s of this LEASE shall in all cases be sin1ply construed according to its
fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the
opportunity to seek assistance of counsel in drafting and reviewing this LEASE.
ARTICLE 31 - CAPTIONS
Captions of the articles, paragraphs and subparagraphs oftbis LEASE are for convenience
and reference only, and tbe words contain_ed tberein shall in no way be held to explain, modifY,
aD.1plifY or aid in the interpretation, construction or mea.Tling of the provisions of this LEASE.
ARTICLE 31 - A1VlENDMENT
Tr,is LEASE is not subject to aD.1endment except in wTiting executed by both parries hereto.
ARTICLE 33 - NOTICES
All notices, demands or requests from one party to anotber shall be delivered in person or be
sent by mail, certified or registered, postage prepaid, to t.he addresses stated in tbis l\-,-rticle and to
such other persons alld addresses as either party may designate. Notice by mail shall be deemed to
have been given at the time of mailing.
Lease Agreement bet1.veen City of Seward and Seward
Chamber of Commerce
December 2005
Page 25 of28
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IN WITNESS WH.-EREOF, Lhe parties hereto have set their hands and seals the dates
herein set forth.
CITY:
LESSEE:
CITY OF SEWARD
SEWARD CHAMBER OF COMMERCE,
CONFERENCE Al'!AJ VISITORS BUREAU,
INCORPORATED
By:
Its:
Date:
{Iv!- tJ~.
Clark Corbridge
City Manager
12-c'-o'}-
~La ~~"
By: Laura Clowaro/'
Its: Executive Director
Date: 1.;1 - 7 - 0 ~
AITE-S-T'. ~v~~~~y~~t~;,~~~:~
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~ \J "'-ry .,f'\.~:> ~'!>
:: ~e~U ~~ '0 ""0 '<.:_~
a SEl~2~:L ~ ~ =;t
i · (:~~~,;~;{~)
STATE OF ALASKA ) G1U~n"."~
) ss.
THIRD JUDICiAL DISTRICT )
TIllS IS TO CERTIFY that on this (jJ'1"'- day of .Getem!u.v, 2005, before me, the undersigned,
a Notfuy Public in and for the State of Alaska" personally appeared Clark Corbridge, k.noVvTI to me
and to me known to be t.he City Manager fur the City of Seward, Alaska, aIld aut.horized to execute
docu.rnents on its behalf, and is the individual named in and who executed the foregoing docwnent
on behalf of the City of Seward for the uses &'1d purposes therein set forth.
VlITNESS my hand fuld notarial seal the day and year first hereinabove VvTitten.
if I /- dcu
/ / / ^
~?1 t/JtC /A -..././ 7 /&~
Notary Public in and for Aliiska
My Commission Expires: --::t . z;; . () ~
Lease Agreement between City of Seward and Seward
Chamber of Commerce Q
December 2005 v
Page 27 of28
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Council ~Agenda Statement
Meeting Date:
September 26, 2005
Through:
;
Clark Corbridge, City Manager Cttt/L C(-l(- OF;;
Kirsten Vesel, Assistant City Manager K'tdJ
From:
Agenda Item:
Granting a new Lease to the Seward Chamber of
Commerce, Lot 4 Fort Raymond Subdivision, Plat
No. 86-lIt
BACKGROUND & JUSTIFICATION:
The Seward Ch3-mber ofCollL.merce entered into a lease with the City of Seward on August 28, 1989.
This Lease encompasses Lot 4, Fort Raymond subdivision, Plat No. 86-10. The Seward Chamber of
Com.merce requests the City Council's grant of a new lease of the same piece of property. The
resolution and form presented at this meeting provides the requested new lease, subject to consent by
the City. If approved by City Council, the lease ,viI! be effective in 30 days.
CONSISTENCY CHECKLIST:
Where applicable, this agenda statement IS consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City COli..T1cil Rules of Procedures.
FISCAL NOTE:
The rent is Four Thousand DoHars ($4,000.00) fulllUally, subject to fair market value increases every
five years. However, this lease provides a waiver for no rent due as long as the site is used by the
Lessee for the operations of a Chamber of Commerce office/ visitor information center.
Approved by Fi..nance Department J6~j-l~A/'~
RECOMMENDATION:
COli.l1cil approve Resolution 2005- S'5 authorizing the City Mfu'1ager to enter into a Lease to the
Seward Chamber of Commerce for Lot 4 Fort Raymond Subdisivion, Plat No. 86-10.
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-85
finalize the lease transaction without cha.l1ging the essential terms and conditions and is auLhorized to
execute the lease and ai1Y related documents as needed to complete this lease transaction.
I
Section 2. It is in the public interest to negotiate the lease disposal of the real propert:y
described in the presented lease agreement and to not require the lease disposal by public bid or
auction because the Cha..111her of Commerce has already constructed improvements on the land
pursuant to a prior lease.
Section 3. The City COlli'lcil finds that the public interest will be served by leasing the real
property for less than appraised fair market value for the reasons set forth in the recitals and this
resolution.
Section 40 The City Council finds that the public interest will not be served by an appraisal
because under the terms of the lease rent is ,vEived so long as the real property is used as peIIl1itted.
Section 50 This resolution shaH take effect thirty days after the date of passage mld posting.
PASSED Al'l"D APPROVED by t.heCity Council of the City of Seward, Alaska, this 26Ll1
day of September, 2005.
THE CITY OF SEWARD, ALASKA
I
---L</~ --<i)vJ-
Vanta Shafer, Mayor r
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, DlllLham, Valdatta, P.....111berg, Clmk, Lorenz, Shafer
None
None
None
ATTEST:
-t~AAij~4!'~
J Johanna Dollerhide -
Assista.llt City Clerk
(City Seal)
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Council Agenda Statement
Meeting Date:
October 9, 2006
Through:
Clark Corbridge, Ci{y Manager
From:
Kirsten Vesei, Assistant City Manager
[Q
Agenda Hem:
Amending the Lease!1vith the Seward Chamber of
Commerce, Conference and Visitors Bureau,
Incorporated for Lot 11, Block 6, Seward Small Boat
Harbor Subdivision
BACKGROUND & JUSTIFICATION:
The Seward Chamber of Commerce entered into the current lease with the City of Seward for the
derby site on October 2,2002, as arnended in 2005. This Lease encompasses Lot II, Block 6 of the
Seward Small Boat Harbor Subdivision. The Seward Chamber of Commerce requests the City
Council to amend the lease to extend the term to 2021 with an option to extend for an additional five
years, and to correct the name oftne Lessee to reflect the complete legal name or "Seward Chanber
of Commerce, Conference and Visitors Bureau, Incorporated." The resolution alId lease arnendment
presented at this meeting extends the term of the Lease <LTld correct the n<Ll11e accordingly. If
approved by City Council, the lease amendment will be effective in 30 days.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Ch<Lrter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
The a...mendment will have no fiscal effect.
i('i _._~
Approved by Fina\1Ce Department i,/~lAc{c,'~, -+;t(l{'i~g~)
RECOMMENDATION:
Cou..l1cil approve Resolution 2006-10'1 amhorizing the City Mfulager to enter into a second
amendment to the Lease with the Seward Charnber of COIILmerce for Lot II, Block 6, Seward Small
Boat Harbor Subdivision, Seward Recording District, Third Judicial District, State of Alaska
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Clark Corbridge
City Manager
ATTEST:
Jean Lewis, Cl\1C
City Clerk
(City Seal)
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1.<.. i-::;,.,....{ ~.LI If! ___ j,/ _
LEASE ArviENDMENT NO.2
November 2006
-Page 2 of 3-
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LEASE NO: RE: 2002 - 02
LESSOR: CITY OF SEWARD
LESSEE: SEWARD CHAMBER OF COl\/IMERCE AND COVENTION AND
VISITOR'S BUREAU
MEMORANDUM OF LEASE: LEASE AGREEMENT between CITY OF SEWARD
arid SEWARD CHAMBER OF COMMERCE AND CONVENTION AND VISITOR'S
BUREAU
This cover sheet has been added to this document by:
City of Sevvard, Harbor Departll1ent
To provide space for recording data. This cover sheet appears as the first page of the
' document in the official public record.
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STATE OF ALASKA
58.
THIRD JUDICIAL DISTRiCT
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This is to certify that on the h day of U (IV Ok' : , "- , be,ore me,
the undersigned Notary Public in aAd for the State of Alaska, duly commissioned and
sworn as such, personally appeared W. Scott Janke to me and to me known to be the
individual named in and who executed the foregoing instrument on behalf of the City of
Seward, and acknowledged to me that he signed the same freely and voluntarily for the
uses and purposes therein set forth.
VVITNESS my hand and official seal the day and year first writteryabpve.
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STATE OF ALASKN",/ t OF p,,,:",\,\'
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THIRD JUDICIAL DISTRICT
This is to certify that on the J 5 day of Oc +oj; f' ~ , 2002, before me,
the undersigned Notary Public in and for the State of Alaska, duly commissioned and
sw?r.n as, such, p~rsonaliy appeared teV"e.~Ci 7?~f. to me and to me known to be the
indiVidual named In and who executed the toregolng Instrument on behalf of The Seward
Chamber of Commerce and Convention and Visitor's Bureau, and acknowledged to
me that he signed the same freely and voluntarily for the uses and purposes therein set
forth.
WITNESS my hand and official seal the day and year first written above.
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r~OTARY PUBLIC in and for .Alaska
My Commission Expires: mJf1 12; ZiJr.J3
GOO I I 2 ~&~ I it
2003
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TABLE OF CONTENTS
ARTICLE 1 0 LEASED LAND. . . . . . . .. ...................".............. 1
1.1 Description of Leased Lana ................................". 1
1.2 Covenant of Quiet Enjoyment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " '1
1.3 ,Right to Provide Substitute Leased Land ...... . . . . . . . . . . . . . . . . " 1
1.4 Property Accepted "As-is" . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1 .5 Permits. . . . . . . . . . . . . . " ................................. 2
1 .6 Platting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2
ARTICLE 2 0 LEASE TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 3
2.1 Lease Term. . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
2.2 Lease Subject to Referenduro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 3
2.3 Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 3
ARTICLE 3 0 RENTAL RATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 3
3.1 Initial Renta! Rate .............,............................ 3
3.2 F?ental Adjustments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
3.3 Procedure for Rental Adjustrnent .............................. 4
3.4 Effect of Late Appraisal by CiTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '. 4
3.5 Appraisal by LESSEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
3.6 Effective Date of Adjusted Rental Rate. . . . . . . . . . . . . . . . . . . " " 5
3.7 Rent Payment Credits. . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . . '. 5
3.8 Late Payment Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5
ARTICLE 4 - USE OF LEASED LAND .................................... 6
4.1 Use of Leased Land ......".............. . . . . . . . . . . . . . . . . . .. 6
4.2 Obligations of LESSEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 6
4.3 No Preferential Rights to Use Public Facilities .......... 6
4.4 Adequacy of Public Facilities ................................ 6
4.5 Tariffs and Other Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
4.6 Time for Payment of Utilities and Taxes . . . . . . . . . . . . . . . . . . . . . . . 7
4.7 Other Uses ............................................... 7
ARTICLE 5 0 UTILITIES AND RiGHTS OF ACCESS ............... . . . . .. 7
5.1 Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 7
5.2 Easements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 7
ARTICLE 6 . CONSTRUCTION BY LESSEE ....................
6.1 Improvements on Leased Land. . . . . . . . . . . . . . . . . . . . . . . . . .
6.2 City F?eview of Construction .............................
7
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L\Docs\43374106\Seward Chamber of Corn..rnerce Lease Final.wpd
City of Seward - Seward Chamber of Commerce
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ARTiCLE 23 0 NO WAIVER OF BREACH , , , , , , , , , , , , . , , , , , . , . , . , , . , , . , . " 23
ARTiCLE 24 0 TiME OF THE ESSENCE , . , , , , . . , . , . ' . , , ' . , , , . . . . . . , , 23
ARTICLE 250 COMPUTATiON OF TiME ."..,...",..,."""".,.,." 23
ARTiCLE 26 c SUCCESSORS IN INTEREST ,'.,....,." . , , . . , , . . . , . 23
ARTICLE 27 0 ENTIRE AGREEMENT . . . . . . . . . . . , . , . . . . . . . . . , . . . . . . , 23
ARTICLE 28 0 GOVERNiNG LAW. . . . . . , . . . . . . . . . . . . . . . . . . . . . . . .. ...... 24
ARTICLE 29 = PARTIAL INVALIDiTY. . . , . . , . . . . . . . . , . . , , . , . , . . , . . . . , . . .. 24
ARTiCLE 30 - RELATIONSHIP OF PART~ES . . . . . . . . , . . . , . . . . . , , . . . , , , . . " 24
ARTICLE 31 . INTERPRETATION . . . . . . . . . . . . . . . . . . , . . . , . . . . . . . . . . . 24
ARTICLE 32 - NUMBER AND GENDER . . . . . . . . . . , . . . . , . . . . . , . , . .
24
ARTICLE 33 - MANDATORY AND PERMISSIVE. , . . , . . . . . . , . . , ,
24
ARTICLE 34 0 CAPTIONS .,..... , . . . . , . , . . . . . . . . . . . , . . . . . . . . ,
25
ARTICLE 35 - AMENDMENT . , . . . . . . , , . . . . . . . . . . . . , . , . . . , . . , . . . . '. 25
ARTICLE 36 - NOTICES ",.,..,."..,."...,..,...."".."."".".. 25
I:\Docs\43374106\Seward Chamber of Commerce Lease Final. wpd
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LESSEE which acceotance shall not be unreasonably withheld. in the event of
such a relocation, Crry shall not be responsible to LESSEE for any of LESSEE's
costs associated with the relocation other than direct costs of moving any structure.
CITY shail not be (esponsible for payment of any amounts of lost profits, incidenta1
or consequential damages or any other costs or expenses as the result of CITY's
exercise of its rights under this provision. CITY shall provide written notice to
LESSEE no less than one hundred twenty (120) days in advance of its intent to
require LESSEE to move LESSEE's facilities.
1.4 Property Accepted "As-is". LESSEE acknowledges that it has inspected the Leased
Land and accepts the same "as-is" and without reliance on any expressed or
implied representations or warranties of CITY (other than the representations in
Section 1.2 hereof), or agents of CiTY, as to the actual physical condition or
characteristics thereof and the legal description or depiction of the Leased Land in
Section 1.1.
1.5 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the
construction and operation of its facilities on the Leased Land. CITY may from time
to time, upon request of LESSEE, execute such documents, petitions, applications
and authorizations as may be necessary, as the underlying fee owner, to file with
an agency or public body responsible therefor an application for conditional use
permit, zoning and re-zoning, tentative and final tract approval, or precise plan
approval that may be required for the lawful construction and operation of the
facilities of LESSEE permitted on the Leased Land by the terms of this LEASE.
However, nothing in this Section shall be construed as requiring CITY to support or
approve any such application or permit requests. If the agency or public body
responsible to approve or grant siJch application or permit request is a City of
Seward agency, department, or board, LESSEE shall follow all City of Seward
procedures, the same as any othel- applicant making similar requests of the City of
Seward, according to the Charter, ordinances, resolutions, or any regulation, rules
or procedures of the City of Seward. Nothing in this Section imposes any duty or
responsibility on CITY to assist LESSEE in obtaining any other permits or approvals.
1.6 Platting. In the event CITY elects to rsplat, CITY agrees to include the Leased Land
in such replat in accordance with the description prepared by LESSEE under
Section 1.3 herein. If LESSEE requests a replat of the Leased Land prior to that
time, CiTY shall assist LESSEE in the preparation and filing of the replat, and
LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and
filing of the replat. LESSEE agrees to sign the plat and any other documents
necessary to complete the platting or replatting of any area including all or a portion
of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or
plat notes as may be required by CITY or other governmental authorities as a
i:\Docs\43374106\Seward Chamber of Commerce Lease FinaL wpd
City or Seward - Seward Chamber of Commerce
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coincidentally the highest and best use of the Leased Land. CITY shai! complete
such appraisal and deliver a copy of the appraisal report to LESSEE not less than
ninety (90) days before each Rental Adjustment Date.
3.3 Procedure for Rentai Adjustment. To adjust the rent as of any successive Rental
Adjustment Date, CITY shall, at its own expense, retain an independent MAI-
certified appraiser, who shall determine the "Fair Market Rental Value" of the
Leased Land in accordance with this Article 3, exclusive of improvements placed
thereon by LESSEE but inclusive of all improvements made by CITY (including
those made before or subsequent to this LEASE). The appraiser's report shall be
delivered to LESSEE not less than ninety (90) days before the Rental Adjustment
Date. The appraiser's determination of Fair Market Rental Value of the Leased
Land shall constitute a final binding determination of the Fair Market Rental Value
and the adjusted annual rental rate until the next Rental Adjustment Date, unless
LESSEE objects to CITY's appraiser's determination of the Fair Market Rental
Value. In that case, LESSEE shall give written notice to CiTY of its objection within
thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage
an independent MAl-certified appraiser at LESSEE's expense to make an appraisal
of the Fair Market Rental Value in accordance with this Article 3.
If LESSEE'S appraisal determines a Fair Market Rental Value that varies from that
determined by CITY's appraisal by no more than twenty percent (20%), then the
adjusted rental rate shall be the average of the rental rates determined by the two
appraisals. If LESSEE'S appraisal determines a Fair Market Rental Value that
varies from CITY's appraisal by more than twenty percent (20%), then, unless CITY
and LESSEE agree on a rate themselves, the adjusted annual rental rate of the
Leased Land shall be determined in accordance with the arbitration provisions
contained in Article 1 9 of this LEASE.
3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the
appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days
before the Rental Adjustment Date, CITY may proceed to complete the appraisal
or deliver a copy of the appraisai report to LESSEE at any time thereafter.
However, any such adjusted annual rental rate shall not be effective until the
quarterly payment due date immediately fallowing the date CITY delivers the
appraisal report to LESSEE.
3.5 Appraisal by LESSEE. if for any particular Rental Adjustment Date, CITY fails to
obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal
report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an
independent MAl-certified appraiser at LESSEE's expense to make an appraisal
under the terms of this Article 3 and submit a copy to CITY before the next quarterly
rental payment due date. However, LESSEE must notify CITY in writing within thirty
I:\Docs'c43374106\Se\vard Chamber of Comrntrce Lease Final. wpd
City of Seward. Seward Chamber af Commerce
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ARTiCLE 4 0 USE OF LEASED LAND
4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased
Land by LESSEE has been deterr:,ined by the City Council of CITY to be in the
public interest. LESSEE'S use of any CITY-owned land outside the Leased Land
is not permitted, and shall be deemed an act of default by LESSEE.
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 upon termination of this LEASE.
b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of
Hazardous Materials on the Leased Land.
c) LESSEE shall not use the Leased Land in any manner or construct any
facilities thereon which would inhibit the use of adjacent or other lands.
d) LESSEE shall make such changes as are necessary or desirable, at
Lessee's sole expense, to meet current building and fire code requirements.
All such construction, improvements and repairs shall be completed by
March 31, 2004.
4.3 No Preferential Rights to Use PUiJ!ic Facifities. This LEASE does not grant to
LESSEE any exclusive rights to use any public port or other public facilities
constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures,
rules and regulations of CITY concerning the use of such facilities as they may now
exist or from time to time be amended, and LESSEE shall not be entitled to any
exclusive use.
4.4 Adequacy of Public Facilities. CITy. makes no representations or warranties as to
the fitness of any particular part or the whole of CITY's public facilities for the uses
intended by LESSEE, and LESSEE has inspected those facilities and has satisfied
itselfthatthefacilities are sufficientforthe intended uses by LESSEE. CITY makes
no representations or warranties of any nature with respect to the commercial
practicability or accuracy of any information provided by CiTY.
4.5 Tariffs and Other Service Fees. CiTY shall have the right to make amendments to
its tariffs, regulations and scheduled fees from time to time even if those
adjustments shall cost LESSEE more for its operations or use of public facilities,
I:\DocS\43374106\Se\vard Chamber of Cornmerce Lease Final. wpd
City of Seward. Seward Chamber of Commerce
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(8)
The cost of any construction, reconstruction, demolition, or of any changes,
alterations or improvements, shall be borne and paid for by LESSEE.
(b) The Leased land shall at all times be kept free of mechanic's and
materialmen's liens.
c) In a manner consistent with Section 4.2, LESSEE shall provide CITY with a
copy of all building plans and specifications and a site development plan or
plans (based on a recent survey) for the Leased Land prior to
commencement of construction.
(d) LESSEE is solely responsible for resurveying and locating improvements on
the Leased Land in such manner not to violate building setback requirements
or encroach into rights-of-ways or easements. On completion of any
improvements, LESSEE shaH provide CITY a copy of an as-built survey
depicting the improvements as completed on the Leased Land.
(e) Any general contractor employed by LESSEE or its sublessees shall be
appropriately bonded by use of performance and labor and material payment
bonds in the customary form when cost of the work is equal to or exceeds
FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be
furnished to CITY prior to commencement of construction. If the cost of the
work is less than FIFTYTHOUSAND DOLLARS ($50,000.00), LESSEE shall
provide CITY, if no performance and labor and material bonds are provided
by LESSEE, any necessary assurances or guarantees that the contemplated
work will be performed by the general contractor or by LESSEE. in the event
that LESSEE elects to construct the facility with its own personnel and
equipment, a performance bond shall be required when the cost of the work
is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000).
(f) CITY may, as contemplated by Alaska Statutes, give notice of non-
responsibility for any improvements constructed or effected by LESSEE on
the Leased Land.
(g) LESSEE sha!l comply with ail federal, state and local statutes and
regulations with respect to sLich construction including any required finding
by the City Council of Seward that such action is in the public interest.
6.2 City Review of Construction. CITY shall have the right to review initial plans,
including those supplied to CITY under Sections 4.2 and 6.1 hereof, and any future
changes or additions to LESSEE's facilities on the Leased Land, by reviewing the
design thereof prior to the commencement of construction. CITY shall have the
right to comment upon that design and to require LESSEE to make reasonable
I:\DocS\43374106\Seward Chamber of Conmlerce Lease Final. wpd
City of Seward. Seward Chamber of Commerce
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corrected 0
until tile
,,,,, "
aeT8un IS
92 Violation by CiTY of any applicable laws or regulations of the United States, the
State of Alaska, the Kenai Peninsula Borough, or the City of Seward or any
conditions of any permits issued by agencies of the City of Seward, the Kenai
Peninsula Borough, the State of Alaska or of the United States Government
pursuant to the regulations of such agencies for a period of sixty (60) days after
written notice specifying such violation has been given by the agency to CITY;
provided, however, if such violation be such that it cannot be corrected within the
applicable period, it shall not constitute an act of default if corrective action is
instituted by CITY within the applicable period and diligently pursued until the
violation is corrected 0 Furthermore, if CITY shall contest such alleged violation
through appropriate judicial or adrninistrative channels, the time period specified
herein shali not commence until such proceedings are finally determined, provided
such proceedings are diligently pursued.
ARTICLE 10 - REMEDIES FOR CITY'S ACTS OF DEFAULT
1001 Whenever an act of default by CITY shall have occurred, and any applicable period
for giving notice and any opportunity to cure shall have expired, LESSEE shall have
the following rights and remedies in addition to any rights and remedies that may
be given to LESSEE by statute, common law or otherwise:
(a) Withhold payment of any rent otherwise due CITY to the extent of CiTY's
default;
(b) Recover from CITY, whether this LEASE be terminated or not, reasonable
attorney's fees and all other expenses incurred by LESSEE by reason of the
default by CITY; and
(c) Deciare this LEASE terminated.
102 No expiration or termination of this LEASE shall expire or terminate any liability or
obligation to perform of CITY's Willch arose prior to the termination or expiration
except insofar as otherwise agreed to in this LEASEo
1003 Each right and remedy of LESSEE provided for in this LEASE shall be cumulative
and shall be in addition to every other right or remedy provided for in this LEASE,
now or hereafter existing at law or in equity or by statute or otherwise, and the
exercise or beginning of the exercise by LESSEE of anyone or more of the rights
and remedies provided for in this LEASE, now or hereafter existing at law or in
equity or by statute or otherwise, shall not preclude the simultaneous or later
L\Docs\43374106\Seward Chamber of Commerce Lease Final.\vpd
City of Seward. Seward Chamber of Commerce
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if such violation be such that it cannot be corrected within the applicable period, it
shal! not constitute an act of default if corrective action is instituted by LESSEE
within the applicable period and dili~;Jently pursued until the violation is corrected.
Furthermore, if LESSEE shall contest such alleged violation through appropriate
iudicial or administrative channels, the time period specified herein shali not
~ommence until such proceedings are finally determined provided such proceedings
are diligently pursued; provided, however, that any such extension of time shall not
be effective if the effect of the interim administrative or judicial action is to cause a
stoppage, interruption or threat to the activities of any person or entity other than
those of LESSEE.
11.5 Failure of LESSEE to maintain its ooerations within the Leased Land or to keep the
public rights of way clear.
1 '1.6 Abandonment of the Leased Land by LESSEE.
ARTiCLE 12 0 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
foilowing rights and remedies all in addition to any rights and remedies that may be given
to CITY by statute, common law or otherNise:
12,1 CITY may distrain for rent due any of LESSEE's personal property which comes into
CITY's possession, This remedy shall include the right of CITY to dispose of
personal property distrained in any commercially reasonable manner. It shall be
conclusively presumed that compliance with the procedures set forth in the Alaska
Uniform Commercial Code (AS 45.29.601 - ,628) with respect to sale of property
shall be a commercially reasonable disposal.
12.2 CITY may re-enter the Leased Land and take possession thereof and, except for
any personal property of LESSEE which CITY has waived its right to distrain under
sub-paragraph 12,1 above, remove all persona! property of LESSEE from the
Leased Land. Such personal property may be stored in place or may be removed
and stored in a public warehouse or elsewhere at the cost of LESSEE all without
service of notice or resort to legal process, all of which LESSEE expressly waives.
12.3 In addition to the above, CITY may:
(a) Declare this LEASE terminated;
I:\Docs\-;3374106\Sev.,'ard Chamber of Comrnerce Lease Final. wpd
City of Seward. Seward Chamber of Commerce
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ARTiCLE 13 0 TiTLE TO ~MlPROVEMENTS !NST ALlED BY LESSEE
13.1 Real Property Improvements. All improvements constructed by LESSEE on the
Leased Land shall become the property of CITY upon termination of this LEASE for
any reason; provided, however, that CITY may require LESSEE to remove any
improvements designated by CITY and without cost to CITY.
13.2 Persona! Property. Any other provisions of this LEASE to the contrary
notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but
need not, promptly remove trade fixtures and equipment from the Leased Land
provided that LESSEE shall repair any damages to the Leased Land caused by
such removal, no later than ninety (90) days from the termination of the LEASE.
ARTiCLE 14 - ASSIGNMENT OR SUBLEASE
14.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has
been determined to be in the public interest by the City Council of CITY for the
reasons set forth in the approving Resolution. The rights and duties created by the
LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon
the individual character and financial capability of LESSEE. Therefore, LESSEE
shall not assign or sublet this LEASE.
14.2 Assignment of Lease for Security. Notwithstanding Section 14.1 above, LESSEE
may assign, encumber or mortgage its interest in this LEASE or improvements on
the Leased Land, by deed of trust or other security instrument, to an institutional
lender ("Lender") for development of or operations on the Leased Land, provided
that Lender shall be subject to ail obligations of LESSEE under the terms of this
LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to
CITY by Lender in writing, with notice of any default or breach of LESSEE underthis
LEASE. Lender shall have the right (without being required to do so and without
thereby assuming the obligations of LESSEE underthis LEASE) to make good such
defauit or breach within thirty (30) days after written notice specifying such breach.
Notwithstanding the provisions of Article 12 above, no "LESSEE Act of Default"
shall exist until expiration of thirty (30) days after such notice is furnished to Lender'
provided, '
(a) If Lender, with respect to any default or breach other than a failure to make
any required payment of rent or other money, shall undertake within thirty
(30) days after notice to cure the default or breach and shall diligently and in
good faith proceed to do so, CITY may not terminate this LEASE or relet the
Leased Land unless Lender fails to cure the default or breach within a
reasonable period of time thereafter; and
hDocS\43374106\Se\vard Charnber of Com.merce Lease Fina!.wpd
City of Seward ~ Seward Chamber of Commerce 14
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lESSEE shall obtain owned and non-owned automobile liability insurance with
limits of liabiiitv of not less than ONE MilLION DOLLARS ($1,000,000) Der
. .
occurrence combined single limit for bodily injurf and property damage.
LESSEE shail also maintain workers' compensation insurance as required under
Alaska law.
The minimum amounts and types ot Insurance provided by LESSEE shall be
subject to revision at the sole discretion of CITY in accordance with standard
insurance practices, in order to provide continuously throughout the term of this
LEASE and any extensions hereof, a level of protection consonant with good
business practice and accepted standards in the industry. Such factors as changes
in the type of or extent of use of the Lease Land, increases in the cost of living,
inflationary pressures, and other c:onsiderations, shail be utilized in assessing
whether the minimum insurance requirements should be increased. CITY shall
notify LESSEE of any required increase in insurance coverage.
All insurance policies shall provide for thirty (30) days' notice of cancellation and/or
material change to be sent to CITY at the address designated in ARTICLE 37 of this
LEASE. All such policies shall be written by insurance companies legally authorized
or licensed to do business in the State of Alaska, and acceptable to CITY (Best's
Rating B+ or better). CiTY shal! be listed as an additional insured under all
insurance policies. LESSEE shall furnish CITY, on forms approved by CITY,
certificates evidencing that it has procured the insurance required herein prior to the
occupancy of the Leased Land or operation by LESSEE. Insurance policy
deductibles are subject to approval by CITY. Nothing herein contained shall
prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own
individual cost and expense, additional or other insurance as may be desired. The
minimum insurance requirements under this LEASE shall not act to limit LESSEE's
liability for any occurrence and shall not limit LESSEE's duty to defend and
indemnify CITY for claims related to this LEASE or the Leased Land.
17.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby
releases CITY, its elected and appointed officials, employees and volunteers and
others working on behalf of CITY from any and all liability or responsibility to
LESSEE or anyone claiming through or under LESSEE by way of subrogation or
otherwise, for any loss of any kind (including damage to property caused by fire or
any other casualty), even if such loss shall have been caused by the fault or
negiigence of the CITY, its elected or appointed officials, employees or volunteers
or others working on behalf of the CITY. This provision shall be applicable and in
full force and effect only with respect to loss or damage occurring during the time
of LESSEE's occupancy or use, and LESSEE's policies of insurance shall contain
a clause or endorsement to the effect that such release shall not adversely affect
I:\Docs\43374106\Seward Chamber of Commerc;; Lease FinaL wpd
City of Seward ~ Seward Chamber of Commerce
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arbitration shall not be applicable to claims or disputes involving a requested
remedy having a value of more than Fifty Thousand Dollal"s and Noli OOs
($50,000) (exclusive of interest and costs). Ail demands for arbitration and
all answering statements thereto that include any claim must contain a
statement that the total sum or value in controversy, as alleged by the party
making such demand or answering statement, is not more than Fifty
Thousand Dollars and NotlOOs ($50,000.) The arbitrator will not have
jurisdiction, power, or authority to consider or make findings (except to deny
jurisdiction) concerning any claim, counterclaim, dispute or other matter in
question where the amount in controversy of any such claim, counterclaim,
dispute or matter is more than Fifty Thousand Dollars and Noli OOs
($50,000). The costs and expenses of arbitration shall be shared equally by
the parties, and each party shall bear its own attorney's fees and costs.
(b) Arbitration procedures shall be applicable only to contract, negligence, and
similar claims arising from or related to this LEASE, and shall not be used to
resolve or determine any claim based upon fraud, intentional
misrepresentation, nor any claim based on conduct that is a felony crime in
the State of Alaska.
(c) Written notice of requests for arbitration of disputes may be served by either
party to this LEASE upon the other party. Arbitration of any dispute or claim
shall be determined by a single arbitrator selected from a list of not less than
five arbitrators obtained from the presiding Superior Court Judge or other
appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a
person who (a) has not less than five (5) years legal experience in the State
of Alaska prior to appointment; and (b) such legal experience includes
substantial experience with long-term commercial real property transactions.
Each party shail be provided with a copy of the list and shall be afforded a
maximum of ten (10) working days to become familiar with the qualifications
of the prospective arbitrators. The arbitrator shall be selected by each party,
commencing with the party demanding the arbitration, striking one name
from the list until only a single name remains.
(d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other
location as the parties may agree. Each party shall produce at the request
of the other party, at least thirty (30) days in advance of such hearing, all
documents to be submitted at the hearing and such other documents as are
relevant to the issues or likely to lead to relevant information.
(e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska
law, and the written decision shall be supported by substantial evidence in
the record. Failure to apply Alaska law, or entry of a decision that is not
I:\Docs\43374106\Sewafd Chamber of COlnmerce LeaSe FiJ:aLwpd
City of Seward. Seward Chamber of Comme,ce
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such repairs or be reimbursed therefor. in deciding whether repairs requested by
CITY or required by an engineering report are necessary, the arbitrator is to give
primary consideration to the safety and welfare of the Seward harbor facilities and
the citizens of Seward in light of the highest standards in the industry.
If any facility or service provided by CITY to the Leased Land shail become
inadequate due to changes in environmental control standards or should any facility
require updating or improvement by reason of a change in LESSEE's use of the
Leased Land or operations therefrom, LESSEE shali either construct such
improvements at LESSEE's own cost or reimburse CITY for such work at the option
of CITY.
ARTICLE 21 c ENViRONMENTAL CONCERNS
21.1 Hazardous Materials.
(a) Condition of Site. LESSEE has had full opportunity to examine the site for
the presence of any Hazardous Material and accepts the site in "as is"
condition. LESSEE acknowledges it has been in possession and control of
the Leased Land since 1989.
(b) Release of CITY. LESSEE releases CITY from any and all claims, demands,
penalties, fines, judgments, liabilities, settlements, damages, costs or
expenses (including, without limitation, attorney's fees, court costs, litigation
expenses, and consultant and expert fees) arising prior to, during and after
the term of this LEASE, and resulting from the use, keeping, storage or
disposal of Hazardous Materia! on the Leased Land by LESSEE, or arising
out of or resulting from LESSEE's operations at the Leased Land except for
those claims arising out of CITY's sole negligence or intentional misconduct.
This release includes, without limitation, any and all costs incurred due to
any investigation of the Leased Land or any cleanup, removal or restoration
mandated by a federal, staTe or local agency or political subdivision or by law
or regulation.
(c) Use of Hazardous Materials on the Site.
(i) LESSEE shall not cause or permit any Hazardous Material to be brought
upon, kept or used in or abOUT the Leased Land.
(ii) LESSEE shall not discharge, leak or emit, or permit to be discharged,
leaked or emitted, any material into the atmosphere, ground, ground water,
sewer system or any body of water, if such material (as reasonably
determined by the City, or any governmental autr'iOrity) does or may, pollute
I:\DOC$\43374106\Seward Chamber of Comrnerce Lease Final. wpd
City of Seward. SeWard Chamber of Commerce
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(f) Hazardous I\Aaterial Def7ned. i~S used in this LEASE: !-laz3(dous iv1aterial is
any substance which is toxic, ignitable, reactive, or cOITosive or which is
regulated by any Environmental Law. Hazardous Materia! includes any and
all material or substances which are defined as "hazardous waste,H
"extremely hazardous waste" or a "hazardous substance" under any
Environmental Law. Notwithstanding any statutory petroleum exclusion, for
the purposes of this LEASE, the term Hazardous Material includes, without
limitation, petroleum, including crude oil or any fraction thereof, petroleum
soaked absorbent material and other petroleum wastes.
(g) Environmental Law Defined. ,6..s used in this LEASE, Environmental Laws
include any and all local, 3tate and federal ordinances, statutes, and
regulations, as now in force or as may be amended from time to time,
relating to the protection of human health and the environment, as well as
any judgments, orders, injunctions, awards, decrees, covenants, conditions,
or other restrictions or standards relating to same. Environmental Laws
include, by way of example and not as a limitation of the generality of the
foregoing, the Resource Conservation and Recovery Act of 1976, the
Comprehensive Environmental Response, Compensation and Liability Act
of 1980, the Clean Water Act, and the Superfund Amendments and
Reauthorization Act of 1986.
21.2 Permits and Reporling.
(a) Permits Required by Other Governmental Agencies. LESSEE shall obtain
all permits or approvals required by any applicable law or regulation. Copies
of all such permits shall be provided to CITY prior to LESSEE commencing
work under this LEASE. LESSEE shall promptly make all reports to any
federal, state or iocal government or agency required by any permit or
Environmental Law, including reports of any spill or discharge of Hazardous
Material. The CITY, through the City Manager, may order LESSEE to
immediately cease any operations or activities on the Leased Land if the
same is being carried out without necessary permits, in violation of the terms
of any permit or Environmental Law, or contrary to this LEASE.
(b) Correspondence With and ,Reports to Environmental Agencies. LESSEE
shail immediately provide CiTY with copies of all correspondence and notice,
including copies, of all reports between LESSEE and any state, federal or
local government or agency mgulating Hazardous Material which relates to
LESSEE's operations on or use of the Leased Land.
I:\Docs\43374106\Seward Chamber of COrT':.rncfce Lease FinaL\vpd
City of Seward - Seward Chamber of Commerce
22
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AfmClE 28 = ,GOVERNiNG LAW
This LEASE shall be governed by, construed and enforced in accordance with the
laws of the State of Alaska. The terms of this LEASE are subject in ail respects to the
Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they
may be hereafter amended, including without limitation, Chapter 7.05 of the Seward City
Code.
ARTICLE 29 - PARTiAL INVALIDITY
If any provision of this LEASE is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the provisions shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.
ARTiCLE 30 . RELATIONSHIP OF PARTIES
Nothing contained in this LEASE shall be deemed or construed by the parties or by
any third person to create the relationship of principal and agent or of partnership or of joint
venture or of any association between CiTY and LESSEE; and neither the method of
computation of rent, nor any other provisions contained in this LEASE nor any acts of the
parties, shall be deemed to create any reiationship between CITY and LESSEE other than
the relationship of lessee and lessor.
ARTiCLE 31 = iNTERPRETATiON
The language in all parts of this LEASE shall in all cases be simpiy construed
according to its fair meaning and not for or against CITY or LESSEE as both CITY and
LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing
this LEASE.
ARTICLE 32 - NUMBER AND GENDER
In this LEASE, the neuter gender includes the mascuiine and the feminine. and the
singular num?e: inciudes the plural; the \r"1ord "person" includes corporation, partnership,
firm or association wherever the context so requires.
ARTICLE 33 - MANDATORY AND PERMiSSIVE
"Shall," "will" and "agrees" are mandatory; "may" is permissive.
l:\Docs\43374106\Seward Chamber of Commerce uase FinaLwpd
City of Seward. Seward Chamber of Commerce 24
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and maintain industry accepted standards of fire protection such that the City of Seward's
ISO rating is not degraded by reason of LESSEE'S operationo The parties agree tl1at with
the rapid expansion of technology in the field of fire prevention and control LESSEE's
obligations hereunder may vary during the term of this LEASE and CITY may submit
LESSEE's compliance with its obligation hereunder to arbitration not more frequently than
once each five years.
I:\DocS\43374106\Seward Chamber of COITh.'11erCe Lease Finai.wpd
Gity of Seward ~ Seward Chamber of Commerce
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STATE OF ALASKA
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THIRD JUDICIAL DISTRICT
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THIS IS TO CERTIFY that on this J c( day of L c:rDD.V/~--- ,
2002, before me, the undersigned, a Notary Public in and for the State of Alaska,
personally appeared W. Scott Janke, known to me and to me known to be the City
Manager for the City of Seward, Alaska, and authorized to execute documents on its
behalf, and is the individual named in and who executed the foregoing document on behalf
of the City of Seward for the uses and purposes therein set forth.
WITNESS my.band 'a119 notarial seal the day and year first her
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STATE OF ALASKA
Notary ubli In and for AI~ /
My Com . ion Expires: ( 2-1 / () 2-----
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THIRD JUDICIAL DISTRICT
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THIS IS TO CERTIFY that on this /5'-r;+ day of Uc-rCJ!'3 e..tL-.
2002, before me, a Notary Public in and for Alaska, personally appeared
e rt":;a 14. 'P'- i , to me known to be the person who executed
t e foregoing instrum nt on behalf of the Seward Chamber of Commerce and Ccnvention
and Visitor's Bureau She/He acknowledged to me that she/he executed the same freely
and voluntarily on behalf of said corporation. She/he stated to me under oath that she/he
is the tJ./'6 c etE........ of the said corporation, has been authorized by the Board of
Directors of the said corporation to execute said instrument on its behalf, and has fu!1
power and authority to execute the same.
iN WITNESS WHEREOF, i hereunto set my hand and seal.
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t\l1yCommission Expires: mR"'1:?-~;)...Co"3
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City of Seward. Seward Chamber of Commerce 28
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CITY OF SEW A..RD, l\LASKA
ORDINANCE 2006-12
WHEREAS, a public hearing was held on October 23,2006 concerning the establishment of
the Elhard Electrical Improvement District as described herein.
THE CITY OF SEWARD, ALASI<JJc, ORDAINS that:
Section 1. The special improvement district, refened to as the Elhard Electrical
Improvement District, will include the area as follows:
Lots 5. 6 and 7 Bear Lake Subdivision, lots 13 and 14 of Woodr01V A.laska
Subdivision, Lots 8A and 8B of Elhard Replat Bear Lake Subdivision, and an
unsubdivided area of 10.35 acres described as the eastern portion of SW TOI N,
ROIW, Section 12, that portion of the NII2, SW 14, lying southeast of the Alaska
Railroad ROW
Section 2. After full review by the City Council of all the facts and opinions presented, it is
hereby determined that the proposed Elhard Electrical Improvement District is in the public interest
and necessary and will benefit the property to be assessed.
Section 3. The City Manager is hereby authorized to proceed with the design and
construction ofthe Elhard Electrical Improvement District.
Section 4. The City Manager is hereby authorized and directed to keep account of all of
the costs and improvements including acquisition of interests in land for the improvements including
design, engineering, administration, overhead, profession services, guaranteed fund, bond or loan
costs and interest incuned as a result of the improvements, and all other costs resulting from the
construction of the improvements.
Section 5. Funds in the amount of$48,673.87 are hereby appropriating to finance the
Elhard Electrical Improvement District from the Electric Enterprise Fund retained eamings account
no. 501-0000-3070-0503 to the Electric Assessment District infrastructure account no. 503-5030-
5925.
Section 6. This ordinance shall take effect 10 days after passage and posting hereof and
upon approval of the Kenai Peninsula Borough Assembly.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23.J
day of October, 2006.
THE CITY OF SEWARD, ALASl'...A
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Administration is requesting authorization to expend up to $48,673.87 for the electJical
improvements and related costs; however anI'! the actual costs wi]] be assessed. The improvement
- -
district does add value to each lot that could e"'cntua!!y be recovered if the lot is sold.
CONSISTENCY CHECKLIST:
Yes
No
1. Comprehensive Plan
? Strategic Plan
3. Other
4. Not applicable
FISCAL NOTE:
This ordinance authorizes appropriations in amount of $48,673.87 from the ElectJic Enterplise
Fund retained earnings account no 501-0000-3070-0503 to the Electlic Assessment District
infrastructure account no. 503-5030-5925.
Approved by Finance DepartmentJG2/fc,21> ,. --5~<CCl'~[."/;';;:Z."i
RECOMME.N'DATION:
Council approves Ordinance 2006- ~ detennining it to be in the public interest to proceed with
the Elhard Electrical Improvement Distrct for Lots 5, 6 and 7 Bear Lake Subdivision Lots 13 And 14
Of Woodrow Alaska Subdi vision, Lots 8A and 8B Of Elhard Replat Bear Lake Subdi vision, And the
Eastern Portion of Un subdivided Area Of 10.35 Acres Described As A Portion Of SW T01N R01W,
Section 12, That Portion Of The N V2, SW Lying Southeast of the Alaska Railroad ROW
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Council Agenda Statement
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Clark Corbridge, City Manager
Meeting Date: October 9,2006
From:
Kirsten Vesel, Assistant City l\la.Tlager
Agenda Item: Pfu"ticipating m the AMLJIA Loss Control Incentive
ProgralTI
BACKGROUND & JUSTIFICATION:
The City of Seward is a member of the Alaska lVIullicipal League Joint Insurance Association
(AMLJIA). AMLJLto. provides comprehensive risk ma.l1agement assistance and provides workers'
compensation, liability and property coverage for Lhe City of Seward, AMLJIA developed the Loss
Control Incentive Program to help reduce meTnber losses individually and pool wide. AIVILJIA will
provide all wTitten program material necessary and offer assistance to p31iicipants. Pool members
Ll],at participate in the Loss Control Lllcentive :Program and complete the required activities \vill have
the opportunity to emn a discount of up to Five Percent (5%) on our contribution. In 2005, the City
participated in the Loss Control Program ane was awarded approximately $9,000 toward enhancing
our safety program. In 2006, we would like to continue these efforts to en.t'1ance our safety program.
It is the City of Seward's polity to provide a safe envirorlment for its elected officials, employees,
citizens, and the visiting public. In order to qualifY for tpis Loss Control Incentive Program the City
must do the following:
1. Provide tracking logs to document all safety activities.
2. Pass a resolution a.n_l1ually electing to participate in this prograrn.
3. Provide reports and inspections timely and on a semiw...llual basis.
4. Engage a.T\d active Safety COJ:l1~mittee to include agendas, notes, specific topics and minutes.
5. Provide model safety pla.11s and training.
The City has been actively engaged to compJele the above requiremem to continue to qualify for this
Pragran1.
INTENT:
To pass a resolution to pmticipate iIl Lhe AMLJIA Loss Control Incentive Program for 2006-2007.
CONSISTENCY CHECKLIST:
W:;'1ere applicable, this resolution is consisce:1t ',vith Lhe Sewmd City Code, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan a..l1d City Council Rules of Procedures.
FISCAL NOTE:
There is no financial cost for this program.
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Sponsored by:Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-106
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SE\\ARD,
ALASKA, AUTHORIZING THE CITY MAt~AGER TO ENTER INTO A
CONTRACT WITH CTA ARCHITECTS ENGINEERS TO CONDUCT A
STATE OF ALASKA MANDATED DESIGN REVIEW FOR THE NEW
LONG TERJ'Vl CARE FACILITY )cND APPROPRIATE FUNDING FOR AN
AMOUNT NOT TO EXCEED $17,000
WHEREAS, all healthcare facilities constructed in the state of Alaska require a health
Facility Construction License as required by Title 7, Chapter 9 ofthe Alaska Administrative Code
(MC); and
WHEREAS, the new Long Term Care Facility will be a Greenhouse facility which when
constructed wi!! be the first of its kind in the State of Alaska; and
WHEREAS, SCC 6.10.120 (8) allows for specialized products and professional serVlces to
be exempt from competitive procurement pI"ocedures; and
WHEREAS, City Administration :exercised due diligence by soliciting quotes for the
specialized services required for this project, and
'WHEREAS, Title 7 and Chapter 9 of the AA..C mandates a Health Facility '- onSUllCUon
License include "a letter by a third pa..rty engineering firm certifying that the design and construction
drawings and specifications for the health facility meet the requirements of 7AAC 12.437, 7AAC
12.900 and other applicable state a..rld local :Eire safety, electrical, building, plumbing, mechanical,
and construction codes"; and
WHEREAS, CTA Architects Engineers met all of the peliinent qualifications and did
provide the lowest of the three quotes solicited to perform the services required to fulfill the State of
Alaska required engineering review certification for our Long Term Care Facility design; and
WHEREAS, CTAArchitects Engineers is fa..rniliarwith both the Greenhouse model o l' care
md health care design in general.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASK;\ that:
Section 1. Funding is approv;;d in an amount not to exceed S 1 7,000 (includes a 1
contingency), to be appropriated from account # 670-6700-5390 to eTA Architects
Engineers to conduct a State of Alaska mandated design review for the new Long Term Care
Facility.
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Council Af:'enda Statement
,,-'
Meeting Date:
Octo beE' 9,2006
To:
Clark Corbridge, Ch~v Manager
From:
Tom Shepard., Proje,~~ .Manager
Agenda Item:
Approve funding not to exceed $17,000 to
conduct a State of A.\aska mandated design review for the new Long
Term Care Facility
HACKGKUlIND & JlISHUCAnUN:
The Cit'j of Sevlard is in the final stages of design for the ne\v Long Terrn Care (LTC) facility
that will be located in North Forest Acres. new facility will be a Greenhouse facility which,
when constructed, will be the first of its kind in the state of Alaska.
All health care facilities constructed in the scate of Alaska require a Health Facility Construction
License from the state of Alaska as required by Title 7, Chapter 9 of the Alaska Administrative
Code. Part of this licensing requirements is that state of Alaska obtains "a letter by a third party
engineering firm certifying that the design i:md consLTUction drawings fuid specifications for the
health faciEr! meet the requirements of7A.'\C:: 12.437, 7AA..C 12.900 and other applicable state
and local fire safety, electrical, building, plmnbing, mechanical, and construction codes." (7 p",i\C
09.030).
On August 24, 2006 Administration solicited quotes from three engineering firms familiar with
both the "Greenhouse" model of care and feimiliar with healthcare design in general.
Administration elected not to conduct a true competitive bid procedure due to the unique
qualities of the scope of work. These unique qualities include being familiar with the Greenhouse
model of healthcare that our new LTC facilicy will be; being ffuliiliar with healthcare design
sta..l1dards, etc... This thought process is in Ene with SCC 6.10.120 (8) as it pertains to
professional services.
CTA l\.rchitects Engineers met all.oftne percinent qualifications and did provide the lowest quote
of the three to fulfill the state of Alaska required engineering review certification tor our LTC
facility design.
Staff is requesting Council to approve funding not to exceed $17,000, (includes a ] 0';-6 cOlltingency),
to be appropriated to CT A Architects Engineers to conduct a State of Alaska mandated design
review for the nevli LTC Facility.
CONSISTENCY CHECKLIST:
Where applicable, thjs resolution is consislent with the Seward City Code, Chm1er, Comprehensive
Plans, Land Use Plans, Strategic Pla..ll and -City Council Rules of Procedures.
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CITY OF SEWARD
1'. O. Box 167
.ilO Adams Street
Seward, Alaska 99GG..
City Manager's Office
907.2U .iM7 907.224.-1038 En
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PROFESSIONAL DESmN SERVICES CONTRACT
PEER REVIEW - LONG TERM CARE FACILITY
-~. -~~~" ClTt- OF SEWARD
SEW!;.RD, ALASKA
THIS original CONTRACT made on the 10tl] of October, 2006 between the CITY OF SEWARD, ALASKA (the "City"),
acting hy a.nd through the City Manager or other City aut.l]onzed representative (its "Contracting Officer") and CT A Inc.,
its successors and assigns (the "Contractor") as follows:
The Contractor, for and in consideration of the paymen': or payments herein specified and agreed to by the parties, hereby
covenants and agrees to furnish all equipment, material, and labor required to complete the WORK according to the
September 18, 2006 CTA propos?1, (Att?chment A), 2ud the September 18, 2006 email from Ja.mes G. Shepard, AlA,
Principle Healthcare Group-CT A Inc., (Attachment B). The Contractor further agrees to be bound by all representations
of the Contractor in the Contract and take all necessary steps to remain in compliance with all such representations.
The Contractor hereby agrees that the time and mateTi3Js, noHo-exceed price set forth below, is fu!! compensation for
furnishing all equipment, material, and iabor which may be required in the prosecution and completion of the whole work
to be done u!lder this Contract no later than November 30, 2006, and in all respects to complete the Contract to the
satisfaction ofthe Contracting Officer.
The Contract payment shall !lot exceed $15,137 DOLLARS for all items. Payment will be made in one lump sum at the
completion of the tasks and upon receipt and app-oval of an invoice for work accomplished in accordance with
Attachments A and B
The Contractor shaH procure and maintain during thf": Efe of this contract, Worker's Compensation insurance, including
Employer's Liability Coverage, in accordance with apPlicable law.
The Contractor shall procure and maintain during the Efe of this contract, Commercial General Liabihty Insurance on an
"Occurrence Basis" with limits of liability not less than $2,000,000 per occurrence and/or aggregate combined single llrnit7
Persona! Injury, Bodily Injury and Property Damage. Coverage shall include the following extensions: (A) Contractual
Liability; (B) Products and Completed Operations; ee) Independent Contractors Coverage; (D) Broad Form General
Liability Extensions or equivalent.
The Contractor shall procure and maintain during the fife of this contract, Professional Liability _ errors and Omissions
Insurance on an "Occurrence Basis" witt limits ofliabllity not less than $1,000,000 per occurrence.
The following shaH be Additional Insureds: The of Seward, including all elected and appointed officials. ail
employees ar;d l/oIunteers, all board::.? commissions and/or authorities a..11d their board members, employe~s, and
volunteers. This coverage shan be prima..T")- to the Additional Insureds, and not contributing with any other insurance or
similar protection available to the Additional Insureds: whet.her other avaiiable coverage be primary~ contributing Of
excess.
Worker's Compensation Insurance~ Cummercial Ge!1eral Liability 1"1surance and Professional Liability Insurance, as
described above, shall include all endorsement stating the folJowing: "Thirty (30) days Advanced Written Notice of
Cancellation, or Non-renewal, or Amendment shall be sent to: City of Seward, Engineering Department, P. O. Box 167,
Seward, AK 99664.
Attached as Exhibit C are Certificates of Insurance andjor policies, acceptable to the City of Seward, as listed below;
a. One (1) copy of Certificate ofLllsurance for V:/Drk~?s Compensation Insuran.ce;
b. One (1) copy of Certificate ofImurance for Comrnel"cial General Liability rnsuran~~;
Seward LTC Peer Review
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September 18, 2006
City of Seward
Attn: Tom Shepard
P.O. Box 167
410 Adams Street
Seward, AK 99624
RE: Peer Review - Long Term Care Facility
Mr. Shepard:
This ietter is in response to your request le:j:sr of 8/24/2006 to proVide a peer review of the 40
bed (cottages) long term care facility. We understand this includes review of 4 residential-style
homes (7,200sf each) and a Commons Bui:ding of 16,500 sf.
As I indicated to you in our telephone conversation, CTA has designed and constructed two
separate plans of the green house design. These two houses have been occupied for over 1
year and house 12 residents in each for dementia-assisted living.
We just completed design of 5 skilled care cottages that are currently under construction and
have just undergone review by City of Billings and State of Montana Department of Health
review as welf as CMS oversight from the Denver office.
I also talked with Shelby Larsen with the State of Alaska to better understand their concerns and
expectations.
This proposal is based on the information contained in your letter and we do understand your
time schedule.
For the iump sum fee shown below, CT A would provide the services/deiiverabies listed above
for the Schematic Design phase.
. Basic servicesilabor
. Expenses
Total proposed fee
$ 14,357
$
$
280
15,137
Our proposal presumes that you will send the drawings to us as detailed in your letter and that
CTA is l12! expected to attend anyon-site meetings. We do not have any travel costs inciuded
in our proposal.
Our proposal does 1l2! presume any time spent in review meetings with you or the design team.
I have included our hourly rate schedule and Ifife would use these hourly rates for attendance in
meetings or teleconferences should you desire us to do so.
:_~~i.d S;TCEr [59101J ~ PO. Box i439 .. BiJiingsy fvlontana 59/03 ~ 406.248. 7455 ~ F':iX: +06. 243. 3779
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HQURL Y BlltlNG RATES
20ti'l6
1. Many projects are negotiated as a percent of construction cost or lump sum fee.
2, Hourly rata projects are often biiled at a multiple of D.P.E{i.e.. 2.7 or 3.0 X DPE depending on the risk)
3. Another option for hilling is me houriy rates list~ b6k,w:
AACHITECTURA-Ji,
CADDiDrafling T echniclan..................... ...... . ... ......... .;... .........., .. w. ..... .............. .......................... h" $37.00/Hr
S$nior CADD Technician ...............................................;..................... ............................. ........ ..$49-53.00iHr
S$nior CAOO T echniclan II.................. ................................ .................. .......... .......... ......... ...... ..$54-62.00iHr
Architectural Production.,.............................. ................. ........... ..... ...... .................... ................ ........ $49.00iHr
Architectural ........................................................... h...... h....... ................ ................. ......................... $S6.00iHr
Architect - Senior ......;..... ....h........ ............... .......... ........................ ..m.... ...... ......m........... ....__.... $65-$9.00IHr
Project Manager . ...h..... ................... ... .................... ............................................ ,......,........,....... $63-95 .OO/Hr
Senior Project Manager ............ ........ ......... ......h...... ................ ..... ............... '''m. .:........... """ ...$84-116.00lHr
Principal- Senior Architect ............h...............".........h................h.........h.......'......h...h.........$125--135.00iHr
Landscape Architect Grad\.late . ........ ...... ................. ................. ........ ....... .................. .... ....... .....$72-n.OQ/Hr
Landscape Architect - Assislz;ntProject Manager ................ ..Ch....................................... .......$77-82.00/Hr
Landscape Architect - Project Manager............. .......h............... .____................... ............. ___.... ..... $82-87 .aO/H,
Interior Designer - Senior Project Manager .................................................................. ..............$68-82.00/Hr
Interior Designer .... ............. ....... ...........................................,. ... ..,....... .................. ................. ....$36-SO.00/Hr
Architectural Designer ............... ............ ...............................".. ,...............,. ............ ........ ...... .......... $ i '18.00/Hr
ENGll'iFEERlN(;
CADDlDraftjng Technician............,... ......... ....... .....,............... ..... ...... ..... ................ ....3&-47.00iHr
Engineering T echnicianlDesigner.,.........................................., ........... _...................................., $52-57. OO/H r
Senior Design Engineer............ ........ ...... ................ ................., .....................h.....h... ................. $59-70.00/Hr
Engineer-Senior CiviL....... .........:., ....................................... ..... .................. ........... .$81-92.00iHr
Engineer-Senior Civil Project Manager.. ............... ......... .......................__,........................ .$127.00IHr
Engineer - Structural.... ...................... ...................................... .............................. ............ '. ...h. $73-00.00IHr
Engineer - Senior Structural .....................................................................................................$96-1 i5.00/Hr
Engineer - Electrical...................... ......................... .................. ...... ...............'..h......................... $75-91 .OOiHr
Engineer - Senior Electrical ....................................................................................................$1 00-116.00iHr
Engineer - Mechanical...... ............. .............._ .......................... ......... ...... .......... .......... ......... ..... ..$71-S5.00JHr
Engineer - Senior Mechanical................................:.........................................................., ........$95-111.00Hr
Principal - Senior Engineer ....... ..................................................................................... .. ..........$1 36.00IHr
SUPPORT
Word Processing ........ ............" ....... .......... ...., .........., ...... ........ .,........ ............ ..... ................ ....... .$36-46.00/Hr
Computer & Information Services..........,.................................................................................$57 .11 O.OO/Hr
Graphics Oe$igner. "" ...... ........... ,..... ......................... .... ............................ ...... .....$47-84.00IHr
Consultants ................................. ....................................................................................... Cost + 10 percent
Reimbursabie Expenses....................................................................................................... Cost + 5 percent
in some Instances !he above hourly rates ""U be increased to rel}ecl signmcant in<;reases In project risks or dm'icujty.
The above staled billing rates indude base salary plusailowaAce iQ, be!i';:jllts. oVll~ad,. professional r.ability insurance and profit.
N;\NBD\2006\Sh~_rdloogterml:..~.doc
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Section 2. The amount of $2,016,489 is hereby appropriated for this purpose from South
Harbor Revenue Bonds Account to South Harbor Capital Project account no. 274-2744-5925
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 9th day
of October, 2006.
THE CITY OF SEWARD, ALASKA
Vanta Shafer, Mayor
AYES:
NOES:
lillSENT:
ABSTAt'N:
ATTEST:
Jean Lewis, CMC
City Clerk
(City Seal)
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TRYCK NYMAN HAYES, INC.
9"{ 1 West Eighth Avenue
Anchorage, A!ast::o 99501
907.279.0543.800.770,0543
Fax: 907.276.7679
Emai!: tedt@tnh-inc.com
=~=-"""
September 27, 2006
Scott Ransom, Harbormaster
City of Seward
PO Box 167
Seward, AK 99664
RE: Seward Small Boat Harbor-South Harbor Float Installation and Upland Improvements,
Recommendation for Award
Dear Mr. Ransom,
We have completed our review of the bid documents submitted by the four blddcrs on the
subject project. Our comments are summanzed below.
HalTis Sand and Gravel, Inc. (HSG) is the low bickler viith a bid of 52,016,489. All required
documents were received with the bid, and ti1ese materials appear acccptable. TNH has worked
with HSG on several similar projects in the Valdez small boat harbor and thcir pertormanee on
these jobs was entirely saTisfactory. They have also completed \vork in Homer (2002) and Steve
Dean (harbormaster) reported that "HSG did a great job on a complex project. The work was
performed on time, with minimal changes, and \vithin budget." The work plan submittcd with
HSG's bid indicates a general procedure an:} schedule for each work item tor the project,
indicating considcration has been made as to their approach to this project. In our opinion HSG
is well-qualified to accomplish the work rcq'Jircd by this contract.
The second lowest bidder was Swalling COllstmetion Co., Inc. with a bid of $2,239,000 which is
$222,511 more than the lowest bid. Swalling is a well-qualified marine contractor. Recent
Alaska harbor projects include Whittier (private) boat harbor, Dillingham All Tide Dock, and
ICRC Multi-Use Floating Dock Facility. Their work plan details the work and equipment to be
used; however, gravel road, oil tank and building, and gangway installation is not mentioned.
We believe that both bids arc reasonable relative to the dollar value for each bid item and either
firm is fully capable of providing the City ,\ith an acceptable end product. If you have am
questions, I can be reached at 907-343-0264.
Sincerely,
Kimber!y Nielsen, PE
Project Manager
cc: TNH file 03096.000.017
c. .
L-ngineenng
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The bonds given by the Contractor in the sum of $2,016,489 Payment Bond, and $2,0] 6,489
Performance Bond, to secure the proper compli811ce with the tem1S and provisions of this
Contract, are submitted herewith and made a part hereof.
The Contractor further covenants and agrees that the entire construction will be done \.Ll1der the
administration of and to the complete satisfaction of the City subject to the inspection at all times
and approval by any regulatory agency of Local, State, or Federal Government of the United
States of America, and in accordance with the laws of the State of Alaska and the City of
Seward.
For purposes of this Contract, Contracting Officer means Scott Ransom, Harbonnaster, or any
other person designated by the City Manager.
The Contractor is 811 independent contractor and not an employee or agent of the City.
Contract Documents shall have the meaning ascribed by the General Conditions of the
Constmction Contract, 3-11d include but are not limited to this Contract, the General Conditions of
the Construction Contract, the Supplementary Conditions, and the following listed documents:
(1) Seward Council Resolution No. 2006-- _; (2) Bid Schedule; (3) Special Provisions; (4)
Teclli-ucal Specifications; (5) Contract Drawings; and (6) any Addendums to the Contract
Doc\.L11lents issued during the bidding period.
IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to its teill1S
and conditions.
CONTRACTOR
HARc'US SA.ND & GRAVEL, INe.
Bill Harris, President
Date
CITY OF SEVVARD
ATTEST:
Clark Corbridge, City M3-llager
Jean Levvis, CMC, City Clerk
Date
City of Se\"ard Construction Contract
October 2006
-Page 2 of2-
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FINAL CERTIFICATE OF RESULTS FOR THE
REGULAR MUNICIPAL ELECTION
HELD OCTOBER 3, 2006
The City Canvass Board has completed their review of all absentee and
questioned ballots of the Regular Municipal Election held October 3, 2006.
Their totals are:
{Note: Total Counted plus Total Rejected =Total Voted}
Report of Absentee and Questioned Ballots
Absentee ballots voted
(Includes permanent, in-person and by-mail)
Questioned ballots voted
Special Needs ballots voted
77
5
5
Total Voted
87
Reiected
Not registered, registered too late
or registered out of City
Form not completed properly
Signed/witnessed after election day
2
Total Rejected
2
Counted
Absentee
Questioned
Special Needs
62
3
5
Total Counted
85
The Election Day results, after canvassing are as follows:
Three Two-year Council Seats
Iris Darling 116 21 137
Mike Calhoon 107 15 122
Dorene Lorenz 78 22 100
John French 101 12 113
Betsy Kellar 138 15 153
Linda Amberg 166 19 185
Jean Bardarson 206 42 248
Willard Dunham 156 35 191
Scott Egger 55 10 65
Tim McDonald 67 19 86
Matt Hall 129 28 157
Write Ins 10 2 12
Election Dav Votes After Canvass Votes
Total Votes
lo5
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October 2006
Monthly Planner
Election Day
12:00 PM PACAS
Meeting
7:30 PM P & Z
Meeting
8
9
10
11
12
13
14
6:30 PM Crty
Council Work
Session (SMC
Dock)
6:30 PM City
Council Work
Session
(Herbicide
Spraying)
6:30 PM Historic
Preservation
Meeting
7:30 PM Crty
Council Meeting
15 16 17 18 19 20 21
7:00 PM Crty 630 PM P &2 12:00 PM 7:00 PM City 7:00 PM C'y
Council Budget Work Session PACAS Meeting Council Budg ~t Council Budget
Work Session Work Session Work Session
7:00 PM C'y Alaska Day Offices
Council Budget Closed
Work Session
22
23
24
25
26
27
28
7:30 PM C'y
Council Meeting
9:00 AM -1 :00 PM
Social Security
Representative
29
30
31
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