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Home My WebLink About01282008 City Council PacketThe City of Seward, Alaska City Council Meetin January 28, 2008 7:30 p.m. Council Chambers 1. CALL TO ORDER Clark Corbridge Mayor Term Expires 2009 2. PLEDGE OF ALLEGIANCE Willard E. Dunham 3. ROLL CALL Vice Mayor Term Expires 2008 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT Robert Valdatta THOSE ITEMS SCHEDULED FOR PUBLIC Council Member HEARING. [Those who have signed in will be given the Term Expires 2009 first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this agenda item.] Tom Smith Council Member Term Expires 2009 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items Betsy Ketlar indicated by asterisk (*). Consent Agenda items are not Council Member considered separately unless a council member so requests. Term Expires 2009 In the event of such a request, the item is returned to the Jean Bardarson Regular Agenda) Council Member Term Expires 2008 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Linda Amberg A. Proclamations and Awards Council Member Term Expires 2008 1. Celebrate Iditarod Days Proclamation .................Pg 4 2. Welcome back proclamation for Eddie Armstrong..Pg 5 B. Borough Assembly Report Phillip Oates C. City Manager's Report City Manager D. City Attorney Report Jean Lewis E. Chamber of Commerce Report City Clerk F. Seward Planning and Zoning Commission Report G. Other Reports, Special Presentations Cheryl Brooking City Attorney 1. General Program Presentation By AVTEC. 2. Advertising Presentation by Laura Cloward 3. Seward Community Foundation Pilot Project City of Seward, Alaska Council Agenda January 28, 2008 Page 1 7. PUBLIC HEARINGS A. Ordinances Requiring A Public Hearing 1. Ordinance 2008-001, Revising Seward City Code Section 5.35.045 (Computation - Maximum Tax), Increasing The Sales Tax Cap From $500 To $1,000, Effective January 1, 2009, And Rescinding Ordinance 2007-010 ...............................................Pg 6 B. Resolutions Requiring A Public Hearing 1. Resolution 2008-002, Authorizing Termination Of The Existing Lease With Emerald Sea, Inc. As Assigned To lplusl Corporation, DBA Major Marine Tours And Authorizing The City Manager To Enter Into A New Lease With Seward Wildlife Cruises, LLC For Lot 6, Block 6, Seward Small Boat Harbor Subdivision, Plat 2000-19, Seward Recording District, Third Judicial District, State Of Alaska .....................Pg 9 2. Resolution 2008-005, Authorizing The City Manager To Terminate The 2004 Joint Use Agreement With State Of Alaska Fire Service Training And Alaska Vocational Technical Education Center And enter Into A Lease Agreement With The State Of Alaska Department Of Administration For Approximately 7.79 Acres Described As The Unsubdivided Remainder Of Block 1, Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Seward Recording District, Third Judicial District, State Of Alaska, For The Purpose Of Constructing And Operating AFire/Safety Training Facility By The Alaska Vocational Technical Education Center ............................................Pg 45 8. NEW BUSINESS A. Resolutions *1. Resolution 2008-003 Accepting A Grant In The Amount Of $1,299.60 From The Alaska Highway Safety Office For 2008 Second Quarter ASTEP Driving Under The Influence (DUI) Enforcement Campaign And Appropriating Funds ...................Pg 85 *2. Resolution 2008-004, Accepting A Grant In The Amount Of $1,299.60 From The Alaska Highway Safety Office For 2008 Second Quarter ASTEP Seatbelt Enforcement Campaign And Appropriating Funds .......................................................Pg 90 3. Resolution 2008-006, Authorizing The City Manager To Appropriate Funds In The Amount Of $5000 To The Seward Community Foundation To Participate In The 2007- 2008 Pilot Project Developed For Community Asset Building, To Increase The Capacity Of Local Community Assets, To Cultivate Local Philanthropic Leadership And Further Sustain Local Nonprofits In The Greater Seward Area ..................................Pg 95 *4. Resolution 2008-007, Authorizing The City Manager To Pay Dues Owed To The Alaska Power Association (Formerly Areca) For The Year 2008 In The Amount Of $18410.00 .................................................................................................................Pg 99 City of Seward, Alaska Council Agenda January 28, 2008 Page 2 5. Resolution 2008-008, Appropriating $65,000 For The Purchase Of A Used 1996 Oshkosh Snowblower From The State Of Alaska Vehicle Surplus Auction ...................................................................................Pg 102 C. Other New Business Items * I. Approval Of The Regular City Council Meeting Minutes for January 14, 2008 ..............................................................................Pg 105 *2. Approve the Shared Vision for a Comprehensive Study of Alaska's Navigation Transportation System .........................................................Pg 113 9. INFORMATIONAL ITEMS AND REPORTS (No action required) A. City December Financial statement ................................................Pg 115 10. COUNCIL COMMENTS 11. CITIZENS' COMMENTS [5 minutes per individual -Each individual has one opportunity to speak.) 12. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 13. ADJOURNMENT City of Seward, Alaska Council Agenda January 28, 2008 Page 3 Iditarod WHEREAS, the Iditarod National Historic Trail in Alaska, and; WHEREAS, Seward is Mile "o" of a tlon Trail, created in 1978, is the only National National Historic Trail, and; WHEREAS, the Iditarod Historic Trail lliance; the U.S. Forest Service, the Bureau of Land Management, the U.S. ~?sh and Wildlife Service and Bother interested partners have chosen January 20os to Octpkier X012 asthe offici' Iditarod Trail: Centennial, and; WHEREAS, the kickoff+of the Centenni 1 will take p1aGQ in`Seward on February 2"d and sad, 2008 with a,tvide variety of both informa ive and fun events end trill commemorate the departure from Sward, of an'Alaska Road Co fission party headed by W.L. Goodwin on Januarys 1, 1908^to established a new wing mail trail from Seward tq Nome and; :: ~ ~ r `:y L, `... WHEREAS, with the discovery. QfgCl~d tlie,Iditarod District in December 1908, this mail trail was expanded during the v~!ititer of ~~ `t7r1§11 to reach the new mining district and because the.Iditarod was the des~natlp~of mb t people traveling over the Trail, it became known as the Iditarod Trail, anal; W#IEREAS, Seward was a maior e~~tfitt rig center for miners going into the Iditarod district, and; , WHEREAS until the ~trplane lreegan ';reply Ire dog team in the rn~d 1920's, thousands of people traveled over the Tr~l] and- ohs of nfail, equipment and gold were carried over the Trail, and; i WHEREAS,; `the Centennial will help c eate public awareness of the Trail` history, encourage recreational use and foster widespread stewardship ofthe-.Iditarod National Historic ,. ~ .. Trail. w_ NOW THEREFORE,'If:Clark,_Corb~ hereby proclaim that the City of Seward bec Centennial and that February 2 and 3, 20os be in Seward, and all residents in the area be encoi and other events of the Iditarod Trail Centennial Dated this 28'" day of January, 2008. F the "City of Seward, Alaska, do participant in the Iditarod Trail Days" to participate in the kickoff celebration THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor G ;. thank Eddie Armstrong for his service and sacrifice to our country.' NOW,THEILEFORE I, Clark Corbridge, the S~yvard City Council, do hereby weld the Alaska Army National Guard back to to he: TlatPrl Sponsored by Oates Introduction January 14, 2008 Public Hearing: January 28, 2008 Enactment CITY OF SEWARD, ALASKA ORDINANCE 2008-001 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING SEWARD CITY CODE SECTION 5.35.045 (COMPUTATION -MAXIMUM TAX), INCREASING THE SALES TAX CAP FROM $500 TO $1,000, EFFECTIVE JANUARY 1, 2009, AND RESCINDING ORDINANCE 2007-010 WHEREAS, the Seward City Council approved Ordinance 2007-010 on December 10, 2007, increasing the sales tax cap effective April 1, 2008. Following passage of said Ordinance, the City and Borough administrations met to discuss implementation and determined that due to computer system programming constraints, it would be impossible for the Borough to meet the April 1 deadline, and a later date would provide more time for the Borough and City to adequately re-program computer programs, reformat sales tax forms, and inform businesses of changes to the tax cap; and WHEREAS, the Borough and City administrations agreed to recommend to their respective legislative bodies, a revision to the implementation date to make the increase in the sales tax cap effective January 1, 2009, providing sufficient time for computer program modifications, modifications to forms, education of taxpayers, and helping Co smooth the implementation of a major diversion between the tax policy of the Borough and a local municipal government; and WHEREAS, by agreeing to compromise on a later implementation date, the Borough has agreed to assume al] costs associated with modifications to its tax accounting system and forms; and WHEREAS, Seward City Code 5.35.035 provides authority for the imposition of sales tax and requires that sales taxes be collected and remitted to the Kenai Peninsula Borough in accordance with AS 29.35.170 and Chapter 5.18 of the Kenai Peninsula Borough Code; and WHEREAS, Seward City Code 5.35.045 specifies the amount of tax to be applied on the first $500 of each separate sale, rent, or service transaction, with said amount being generally identified as the "sales tax cap" and this Ordinance would increase that sales tax cap from $500 to $1,000; and WHEREAS, neither the City of Seward, nor the Kenai Peninsula Borough have amended their sales tax provisions to increase the maximum tax computation since the adoption of Kenai Peninsula Borough Ordinance No. 9 which had an effective date of July 1, 1965; WHEREAS, the equivalent value in today's dollars, of the 1965 tax cap of $500, is estimated at more than $1,900. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: CITY OF SEWARD, ALASKA ORDINANCE 2008-001 Section 1. Seward City Code Section 5.35.045 is amended as follows: ae~ =Delete Bold =New The tax shall be applied only to the first $-599 $1,000 of each separate sale, rent or service transaction. The payment of rent, whether for real or personal property, in excess of $590 $1,000 and for more than one month shall be treated as several separate transactions covering the rental for one month each. A transaction involving payment for services or personal property to be rendered or delivered over a period of more than one month for a consideration in excess of ~-599 $1,000 shall be treated as several separate transactions occurring one each month over the period of time that the service or property is rendered or delivered. Section 2. Ordinance 2007-] 0 is hereby repealed. Section 3. The effective date of the change in the sales tax cap from $500 to $1,000 is January 1.2009. Section 4. This ordinance shall take effect 10 days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of January, 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) J~ COUNCIL AGENDA STATEMENT Meeting Date: January 14, 2008 Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director RE: Delay in implementation of sales tax cap increase BACKGROUND & NSTIFICATION: The Seward City Council approved Ordinance 2007-10 on December 10, 2007, with an effective date of April 1, 2008. This ordinance authorizes an increase in the sales tax cap from $500 to $1,000. Prior to approval of this ordinance, the City administration informed the Kenai Peninsula Borough administration of the proposed ordinance. The Borough administration estimated the potential cost to them of modifications to their computer systems and forms to accommodate the change in tax cap, at approximately $100,000. In response to Borough input, the City administration proposed an implementation date of April 1 rather than January 1, to provide more time to the facilitate the necessary computer changes, and to educate and inform local businesses. Following passage of Ordinance 2007-10, City and Borough officials met to discuss the long-term care facility project. At that time, the Borough administration asked to open discussion of the tax cap increase, and requested the City consider further postponing implementation based on concerns regarding the time it would take to complete computer modifications to accommodate the change in tax cap. The Borough outsourced their tax accounting system in the past two years, and the firm representing the software is located offshore, making it more challenging to accomplish the necessary changes. After a complete discussion of costs and logistics, both the City and Borough administrations agreed to request support from the City and Borough legislative bodies, to postpone implementation of the tax cap increase to January 1, 2009. If the City agrees to postpone implementation, the Borough will agree to pay all costs associated with the modifications to the tax accounting system. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The 2008 Budget was approved with the expectation that approximately $70,000 would be generated by an increase in the sales tax cap. A delay in the implementation date will result in the loss of $70,000 for the City in 2008. However, the Borough will agree to ay the approximately $100,000 in implementation costs associated with the computer modifications. ,~,~,~~w RECOMMENDATION: City Council approve a delay in implementation of the sales tax cap to January 1, 2009. ~~~ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING TERMINATION OF THE EXISTING LEASE WITH EMERALD SEA, INC. AS ASSIGNED TO 1PLUS1 CORPORATION, DBA MAJOR MARINE TOURS AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW LEASE WITH SEWARD WILDLIFE CRUISES, LLC FOR LOT 6, BLOCK 6, SEWARD SMALL BOAT HARBOR SUBDIVISION, PLAT 2000-19, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is the owner of real property described as Block 6, Seward Small Boat Harbor Subdivision located in the City of Seward, Alaska; and WHEREAS, the City of Seward entered into a Lease Agreement with Emerald Sea, Inc., in 1997 that was later assigned to 1Plus1 Corporation, dba Major Marine Tours in 2001; and WHEREAS, 1Plus1 Corporation desires to be released from its lease obligations and is not in default of its lease; and WHEREAS, Seward Wildlife Cruises, LLC desires to enter into a lease with the City in the form presented at this meeting. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to execute a Termination of Lease with 1Plus1 Corporation, dba Major Marine Tours and to execute a new Lease with Seward Wildlife Cruises each in substantially the form as presented at this meeting. Section 2. This resolution shall take effect 30 days from the date and posting of adoption and the authorization herein shall expire if the lease termination and new lease are not executed by all parties by March 1, 2008. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of January, 2008. COUNCIL AGENDA STATEMENT Meeting Date: January 28 2008 Through: Phillip Oates, City Manager From: Jim Lewis, Acting Hazbormaster Agenda Item: Consenting to a Termination of Lease with 1Plus1 Corporation, dba Major Mazine Tours, and entering into a new Lease with Sewazd Wildlife Cruises for Lot 6, Block 6, Sewazd Small Boat Hazbor Subdivision, as shown on Plat 2000-19. BACKGROUND & JUSTIFICATION: Emerald Sea, Inc. entered into a lease with the City of Seward effective September 1997 for a site in the hazbor area. This lease encompasses Lot 6, Block 6, Sewazd Small Boat Hazbor Subdivision in the Sewazd Recording District. Emerald Sea, Inc. assigned the lease to 1Plus1 Corporation, dba Major Marine Tours in 2001. Major Marine Tours requests the City Council's consent to terminate the Lease and Sewazd Wildlife Cruises, LLC in turn request a new lease of the same real properly. The Lease Termination with Major Marine Tours and form of new Lease with Seward Wildlife Cruises would be in substantially the form presented at this meeting. If approved by City Council, the consent to terminate the Lease and enter into a new lease will be effective in 30 days. The assignment and release will not decrease the rent paid to the City. The new lease includes an annual adjustment to rent based on the Anchorage Consumer Price Index. Where applicable, this resolution is consistent with the Seward City Code Charter Comprehensive Plans, Land Use Plans, Strate¢ic Plan and City Council Rules of Procedures. FISCAL NOTE: The rent is set at Four Thousand Eight Hundred dollazs ($4800) annually, subject to fair mazket value increases every five years. Upon execution of the new lease, the rent will be subject to annual CPI increases each year in between. Approved by Finance Department ~1Y~to~ -~~2lli,Lti RECOMMENDATION: Council approve Resolution 2008-002, authorizing the City Manager to enter into a Lease Termination with 1 plus 1 Corporation, dba Major Marine Tours and a new Lease with Sewazd Wildlife Cruises for Lot 6, Block 6, Sewazd Small Boat Hazbro Subdivision. 1~ LEASE AGREEMENT between CITY OF SEWARD, ALASKA and SEWARD WILDLIFE CRUISES, LLC Effective Date: .~. TABLE OF CONTENTS ARTICLE 1-LEASED LAND ................................................................. ................................... 1 1.1 Description of Leased Land ................................................. ................................... 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title ................ ................................... 1 1.3 Reserved ............................................................................... ...................................2 1.4 Property Accepted ................................................................ ................................... 2 1.5 Permits ................................................................................. ................................... 2 1.6 Platting ................................................................................. ...................................2 ARTICLE 2 -LEASE TERM ................................................................... ................................... 2 2.1 Lease Term ........................................................................... ..............................•--.. 3 2.2 Options to Extend ................................................................. ................................... 3 ARTICLE 3 -RENTAL RATE ................................................................ ................................... 3 3.1 Initial Rental Rate ................................................................ ................................... 3 3.2 Rental Adjustments ............................................................... ................................... 3 3.3 Procedure for Rental Adjustment ......................................... ................................... 3 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 Interim Rental Adjustments .................................................. ................................... 5 3.8 Late Payment Charge ........................................................... ................................... 5 3.9 Additional Rent .................................................................... ................................... 6 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 ............................................ ................................... 7 4.6 Time for Payment of Utilities and Taxes .............................. ................................... 7 4.7 Other Uses ............................................................................ ................................... 7 ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS ....................... ................................... 7 5.1 Utilities ................................................................................. ...................................7 5.2 Third-Party Improvements ................................................... ................................... 8 5.3 Easements ............................................................................. ...................................8 ARTICLE 6 -CONSTRUCTION BY LESSEE ...................................... ................................... 9 6.1 Improvements on Leased Land ............................................ ................................... 9 6.2 City Review of Construction ................................................ ................................. 10 ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS ... .................................10 7.1 Return of Leased Land in Original Condition ..................... .................................10 ARTICLE 8 -FORCE MAJEURE .......................................................... .................................10 ARTICLE 9 -LESSEE'S ACTS OF DEFAULT .................................... ................................. 11 ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE ................. ................................. 12 i 12 ARTICLE 11-TITLE TO IMPROVEMENTS INSTALLED BY LESSEE ........................ 13 11.1 Read Property Improvements ................................................................................. 13 11.2 Personal Property ................................................................................................. 13 ARTICLE 12 -ASSIGNMENT OR SUBLEASE .................................................................... 14 12.1 Assignment of Lease or Subleasing ....................................................................... 14 12.2 Assignment of Lease for Security .......................................................................... 14 12.3 Assignment to Affidiate .......................................................................................... 14 ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY ............................................ 15 ARTICLE 14 -CITY'S DUTY TO DEFEND/INDEMNIFY .................................................. 15 ARTICLE 15 -INSURANCE .................................................................................................... 15 15.1 Minimum Insurance Requirements ....................................................................... 15 15.2 Subrogation Rights Waived ................................................................................... 16 ARTICLE 16 -CONDEMNATION .......................................................................................... 16 ARTICLE 17 -ARBITRATION ............................................................................................... 17 17.1 Arbitration ............................................................................................................. 17 ARTICLE 18 -MAINTENANCE AND REPAIRS ................................................................. 18 18.1 Normal Maintenance ............................................................................................. 18 18.2 Safety Issues .......................................................................................................... 19 18.3 Cost of Repairs ...................................................................................................... 19 ARTICLE 19 -ENVIRONMENTAL CONCERNS ................................................................ 19 19.1 Hazardous Materials ............................................................................................. 19 19.2 Permits and Reporting .......................................................................................... 22 ARTICLE 20 -ESTOPPEL CERTIFICATES ........................................................................ 22 ARTICLE 21-CONDITIONS AND COVENANTS ............................................................... 23 ARTICLE 22 - NO WAIVER OF BREACH ............................................................................ 23 ARTICLE 23 -TIME OF THE ESSENCE .............................................................................. 23 ARTICLE 24 -COMPUTATION OF TIME ........................................................................... 23 ARTICLE 25 -SUCCESSORS IN INTEREST ....................................................................... 23 ARTICLE 26 -ENTIRE AGREEMENT .................................................................................. 23 ARTICLE 27 -GOVERNING LAW ........................................................................................ 23 ARTICLE 28 -PARTIAL INVALIDITY ................................................................................. 24 ARTICLE 29 -RELATIONSHIP OF PARTIES ..................................................................... 24 ARTICLE 30 -INTERPRETATION ........................................................................................ 24 ARTICLE 31 -CAPTIONS ....................................................................................................... 24 ARTICLE 32 -AMENDMENT ................................................................................................. 24 ARTICLE 33 -NOTICES .......................................................................................................... 24 ARTICLE 34 -FIRE PROTECTION ....................................................................................... 25 ii I3 LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and SEWARD WILDLIFE CRUISES, LLC (the "LESSEE"), whose mailing address is P.O. Box 310, Sewazd Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as 1302-B Boazdwalk, and fiuther described as Lot 6, Block 6, Sewazd Small Boat Hazbor Subdivision, as shown on Plat 2000-19, Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below) to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE'S operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: ARTICLE 1-LEASED LAND 1.1 Description ofLeased Land. The Leased Land is located in the City of Sewazd, Alaska. The Leased Land is described as follows: Lot 6, Block 6, Sewazd Small Boat Hazbor Subdivision, as shown on Plat 2000-19, Sewazd Recording District, Third Judicial District, State of Alaska (the "Leased Land"). The Leased Land is also depicted on the attached Exhibit A, which is incorporated herein by reference. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as ofthe date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that: a) LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; b) CITY is unaware of any prior conflicting use of the Leased Land that would adversely affect LESSEE's intended use of the subject parcel. i4 1.3 Reserved. 1.4 Property Accepted "As-is. "LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as-is" and without reliance on any expressed or implied 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 chazacteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.5 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re-zoning, tentative and final tract approval, or precise plan approval that maybe required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Sewazd agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Sewazd, according to the Charter, ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of--way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description prepazed 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 prepazation 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 ofthe Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. ARTICLE 2 -LEASE TERM 2 2.1 Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization Resolution No. 2008- (the "Resolution"). The Lease Term shall commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE (the "Effective Date"). The Lease Term shall run for 20 years from the Effective Date, ending at midnight on February _, 2027. Except for extensions as provided in Section 2.2 below, this LEASE is not subject to renewal. 2.2 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for two (2) additional five (5) yeaz periods (cumulative extensions not to exceed ten (10) years), provided that: a) LESSEE exercises any applicable option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; and c) LESSEE shall exercise its options to extend by sending written notice thereof in accordance with the provisions of Article 33 of this LEASE. ARTICLE 3 -RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2008, the annual rental rate for the Leased Land shall be set at Four Thousand Eight Hundred dollars ($4800). Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendaz quarter: January 20, Apri120, July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual rental rate as initially established or later adjusted under this Article 3. Additional Rent shall be paid in accordance with Section 3.9 of this LEASE. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2010, and on the same date every five yeazs thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair mazket rental value (the "Fair Mazket Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regazd to LESSEE'S intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety (90) days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment 3 1a Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Mazket 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 Mazket Rental Value of the Leased Land shall constitute a final binding determination of the Fair Mazket Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE'S expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE'S appraisal determines a Fair Mazket Rental Value that varies from that determined by CITY'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from CITY'S appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particulaz Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Mazket Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE'S expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE'S election to obtain an appraisal. If CITY objects to LESSEE' S appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Mazket Rental Value as of the Rental Adjustment Date and in 4 ~~ accordance with this Article 3. If the CITY's appraisal determines a Fair Mazket Rental Value that varies from that determined by LESSEE'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates detemilned by the two appraisals. If the CITY's appraisal determines a Fair Mazket Rental Value that varies from LESSEE' S appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the azbitration provisions contained in Article 19 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE'S obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or incases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each yeaz in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1, 2008 and on July 1 of every yeaz thereafter (each on "Interim Rental ~~ Adjustment Date) in an amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most neazly approximates the CPI for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion, to accomplished as neazly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of $2.50, or such amount as may be established 5 ~g from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. 3.9 Additional Rent. Additional rental payments ("Additional Rent") shall be paid by LESSEE on the first day of each calendar quarter in the amount of $433.73 with the final payment of Additional Rent to be paid on or before Apri120, 2015. The Additional Rent will reimburse the CITY for the improvements built by the CITY neaz or adjacent to the Leased Land and benefiting the Leased Land. Such improvements include the boardwalk, water and sewer improvements, and paving. ARTICLE 4 -USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions aze met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazazdous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall operate marine tourism and related business on the Leased Land. Any changes to this site require prior CITY approval, through the City Manager. e) LESSEE shall be authorized to place a statue of an orca from May 1 through September 30 of each year in the hazbor azea at a location approved by the Sewazd Hazbormaster. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subj ect 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 ofPublic Facilities. CITY makes no representations or warranties as to the fitness 19 of any particulaz part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities aze sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations and scheduled fees from time to time even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE'S interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such chazge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE'S intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE'S planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY'S Master Plan for the azea leased. All such constmction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constmcted by the LESSEE within the public right-of--ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE'S without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be home by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between 7 n~ the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE'S facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal pazking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which aze for the purpose of the orderly development of the Leased Land as a commercial unit subject, however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall be without expense therefor, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage, gas, power line and other easements and dedications and similaz rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Sewazd), public utilities and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similaz rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, ufility, or other easements shall be at the sole cost and 2i expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 -CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materiahnen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of--ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000.00), 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, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interests, a ~ Affiliate means a person the[ directly or indirectly through one or more intermediaries wn[rols, or is wntrolled by, or is under common control with, a corporation subject to the Alaska Corporation Code. 9 ~~ 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 ofnon-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state and local statutes and regulations with respect to such construction, including but not limited to all applicable building, mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE'S plazas and specifications and shall beaz all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights-of--way, or setback requirements. LESSEE shall obtain the usual and customary performance guazantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non-abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE'S operations or use of the Leased Land during this LEASE. ARTICLE 8 -FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or waz, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. 10 ~3 ARTICLE 9 -LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this LEASE for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.3 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication ofLESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement or readjustment of debt law or statute or similaz law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.4 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Sewazd, the Kenai Peninsula Borough, the State of Alaska or of the United States Government applicable to LESSEE'S use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency chazged with the enforcement of such laws, regulations or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective acfion is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings aze 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 11 ~~ -~ entity other than those of LESSEE. 9.5 Failure by LESSEE to operate a marine tour and related business on the Leased Land. 9.6 Except as permitted by Section 4.2(e) of this Lease, failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law or otherwise: 10.1 CITY may distrain for rent due any of LESSEE'S personal property which comes into CITY'S possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public wazehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 10.3 In addition to the above, CITY may: a) Declaze this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE'S default or breach 12 ~,- ~J including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting including costs of necessary renovation and alteration of the premises, reasonable attorney's fees and any real estate commissions actually paid. f} Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 10.4 If LESSEE does not immediately surrender possession of the Leased Land after ternnation by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE'S which azose prior to the temunation or expiration except insofaz as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similaz improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly 13 ~, ,~ ~u remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 -ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligafions of LESSEE under the terms ofthis LEASE upon foreclosure. CITY shall famish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE'S obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska 14 ~, rty N limited liability company in which LESSEE maintains a substantial membership interest2; provided, however, that LESSEE'S full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE'S use of the Leased Land or the use of the Leased Land by LESSEE'S sublessees, assignees, agents, contractors or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 -CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15 -INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement ofthe Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE'S sole cost and expense, comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000) is also required. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in ZAffiliate means a person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, a corporation subject to the Alaska Corporation Code. 15 .' order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY'S or LESSEE'S own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE'S liability for any occurrence and shall not limit LESSEE'S duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone claiming through or under LESSEE by way of subrogation or otherwise, for any loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY, its elected or appointed officials, employees or volunteers or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE'S occupancy or use (including LESSEE'S occupancy or use prior to the Effective Date of this LEASE), and LESSEE's policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers and others working on behalf of CITY) during the time of LESSEE'S occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. ARTICLE 16 -CONDEMNATION If all or any part of the Leased band is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result 16 ;' of the taking. Neither LESSEE nor CITY shall have any rights in or to any awazd made to the other by the condemning authority; provided, that in the event of a single awazd to CITY which includes specific damages for loss of LESSEE'S leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17 -ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 et. sue.), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, azbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than Fifty Thousand Dollazs and No/100s ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than Filly Thousand Dollazs and No/100s ($50,000.) The azbitrator 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 Dollazs and No/100s ($50,000). The costs and expenses of azbitration shall be shared equally by the parties, and each party shall beaz its own attorney's fees and costs. 17 •; ,~ ..~ b) Arbitration procedures shall be applicable only to contract, negligence, and similaz 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 azbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The azbitrator shall be a person who (a) has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiaz with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the azbitration, 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 aze relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute, the azbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an azbitration decision. ARTICLE 18 -MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepaze the Leased Land for eventual development by LESSEE or others by grading, filling or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to shaze such expense 18 ~~ and risk. LESSEE shall maintain in first class condition at all times all fire, pollution and other protective equipment, if any aze placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE'S maintenance responsibilities asthey relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE'S operation such that the surrounding land and port facilities aze exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE'S cost, risk and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the azbitrator it shall fully comply with the maintenance requests. If an azbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report. aze necessary, the azbitration panel is to give primary consideration to the safety and welfaze of the Sewazd port facilities and the citizens of Sewazd in light of the highest standazds in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standazds or should any facility require updating or improvement by reason of a change in LESSEE'S use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE'S own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19 -ENVIRONMENTAL 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazazdous Material and accepts the site in "as is" condition. 19 ., 7 J r,. LESSEE may elect, at LESSEE'S sole cost, to conduct a baseline soils test prior to execufion of this LEASE. b) Release of CTfY. Any other provision of this LEASE to the contrary notwith- standing, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage or disposal of Hazazdous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE'S operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY'S sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazazdous Material to be brought upon, kept or used in or about the Leased Land except for such Hazazdous Material as is necessary to conduct LESSEE'S authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this pazagraph, and all containers therefor, shall be used, kept, stored and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazazdous Material. iii) LESSEE shall not dischazge, leak or emit, or permit to be dischazged, leaked or emitted, any material into the atmosphere, ground, ground water, sewer system or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition, use or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. 20 ~3 d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney, consultant and expert fees, court costs and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (1) occur prior to or during the term of this LEASE; and (2) arise in whole or in part from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants or any other persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. fj Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which aze defined as industrial waste, hazardous waste, extremely hazardous waste or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazazdous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material and other petroleum wastes. 21 3i g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awazds, decrees, covenants, conditions, or other restrictions or standazds relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean W ater Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such pemuts shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state or local government or agency required by any permit or Environmental Law, including reports of any spill or dischazge of Hazazdous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land ifthe same is being carried out without necessary permits, in violation ofthe terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies, of all reports between LESSEE and any state, federal or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 -ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there aze no defaults existing (or, ifthere is any claimed default, stating the nature and extent thereof); and stating the dates to which the rent and other charges have been paid in advance. 22 ~J ARTICLE 21 -CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each sepazate provision. ARTICLE 22 - NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 -TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 -COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. ARTICLE 25 -SUCCESSORS IN INTEREST Each and all of the terms, covenants and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 -ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 27 -GOVERNING LAW This LEASE shall be governed by, construed and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the 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 Sewazd City Code. 23 :~ n J v ARTICLE 28 -PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. ARTICLE 29 -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 relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30 -INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in draRing and reviewing this LEASE. ARTICLE 31-CAPTIONS Captions of the articles, pazagraphs and subpazagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this LEASE. ARTICLE 32 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 -NOTICES All notices, demands or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands and requests from LESSEE to CITY shall be given to CITY at the following address: 24 ~'7 City Manager CITY OF SEWA1tD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Sewadd Wildlife Cruises, LLC Tom Tougas, member P. O. Box 310 Seward, AK 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34 -FIRE PROTECTION LESSEE shall at its sole cost, risk and expense provide fire detection and protection to its operations on the Leased Land and fire prevention to industry standazds for risks to adjacent facilities such that those risks aze minimized. LESSEE shall continue to provide and maintain industry accepted standazds of fire protection such that the City of Sewazd's ISO rating is not degraded by reason of LESSEE'S operation. The pazties agree that with the rapid expansion of technology in the field of fire prevention and control LESSEE'S obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE'S compliance with its obligation hereunder to arbitration not more frequently than once each five years. 25 n~ IN VVTII~S3 WSERFOF, the patties 1~eEo hscve settl>eir hands and seals the dais herein sa forth. Cff'Y: CI'T'Y OFSEWARD ~ City'Manager T)ete: ATTEST: Jean T.ewis, CIvIC CStp Cie~c STATE OFAL 4SKA ) } ss. THIRD JIJDZCtAL 1PISTRTCT ~ SEWA jD WII~LIFr CRiTE~ r I,I,C Twat Tot>gas, JMr~lxr Daf~~7/ p8 THiS IS TO CFRTIEYthatontbosday of ,2008, before me, the ~rsigned, a rr~yra~ma,aat~~es~x~.,r4~~,as~cs~.M~o~t~ City afSewat~ Alaslrn, aodautoexac~edoam>~s caiitsbettat~ aad isthe in~viduat ztaaredin aad wlm aaecvoed flee doramomt on behalf a~thc C5ty of Ssvvard Sor flee cmas 3md purposes thoasetftath. WfINESS mry hand and nomriai seal tare day cart year fidst hae+crabove writoeo. Nofatyl'ubEc inand farAtasira My Ca~onEgi»<~ -, J ~- STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2008, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Tom Tougas as Member of Seward Wildlife Cruises, LLC, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of Seward Wildlife Cruises, LLC for the uses and purposes therein set forth. The foregoing document for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: 27 ~~ w D FLOAT SMALL BOAT HARBOR z w Q _ ~ O ~ ~ m ~ ~ Q O _ w Q O m J J Q to Q O J l.L B FLOAT SMALL BOAT HARBOR E~~ A Termination of Existing Lease, DBA Major Marine Tours ~ Lot 6, BIOCk 6, New Lease with Wildlife Cruises, LLC Seward Small Boat Harbor Subdivision 0 35 70 Feet Alaska M Checketl by: p.('jierlZ ap ~ ~ i Comparry CC Reso 2008-002 1/28/2008 7 Y Homo ~px as t°icM.a eo a~m, o~. r =^ ~= a a 11 i 5 -~ ~T _..~ E•.3~€~ +i~1,a p 4is~-' p }_ tS: :=ga,~ .E iII §i ~E:,~~ tE~€c~ ~~=a u 4~~~s a.,= >~ '~'`~. ~~~~ ~~W cy~ ~ ~~ R ~p n~ Y it ~t ~ 7I C I yy _tll CI ~ f~' q i-si~ ~p ~Ex3~ tt I I ill ~ - i° iii ~ > ~. I `~ w il~ 2~ i C ~y y ~ i <e~ ~ ~: I ~ s ~ $ ICI E~ ~ ~ I~_ ~ Boa ;! ~ ~ ~ ~ I ~ or ~~ ~ ~~ ~ i ~~t- ;~m~ I¢ y Ny Y gi ¢I a i3 m Ri gl d i `t ~~ ~° I '~` {'~ivl'n meg -. I ~~ ~q I x.aasr F T®~,.,,. ~oFi u apitq( xmo~'g' a I x J I ~I ~ I ~ k~ ~~ IF ~ es e% ~ ~ I Y4 !ol g i 1 J Ay, ~~ W la~ iS topi°!f ^4Y ~ e _JCN L6 ~o~.9f, w ~ ~ `A~ I y°_ 45' ~ ' ' ~= ~ I ~~~% % /~ ~.,:•y,% / l~ w ~ ~ .:~ < 1I o, 4iµu~~ ~ ` rc ~~ ~ g9ad fr~MY = y..~i 4Y~ z e`a3=3 '~°3 a j ~p~ ~ ~2~~ I g~E~ - a wgg4.e . ~&8i V $ ng E~~46 ~' ~ e:i ?;A $ ~~~i sf ;ggi z~gg ~ ~g at i5 j ~ y:i Ab } 3€ -p[p[~5< ~I is s~ p 6 EY{~ 4f oIIE CS ~a y°{{{.': 6i S{ SE ~ li n®:e 3s ~i E^ "~ 9a ~~ ~'EF ee~ a: ,,11? is e• 3geEi_ ~3 p9$p-f~^3a[ N ~z gs je3 S; ~~ ~}~ p~fyeE r ~SEa 3E~99 ~Ci{ ~P Sv.M a ~f t i ~ _ y ` ~ t~'S F S~f a~~s k, a, ~ ~ ~ h ° $g T e h e :: q. o 0 0~. a _ ., ~~ h A ~~ \G ~~ 6L~ B W3 / emepapp 91~Btl After Recording Return To: City of Seward Attention: Hazbormaster PO Box 167 Sewazd, Alaska 99664 TERMINATION OF LEASE This Termination of Lease ("Agreement") is entered into and effective as of February , 2008, by and between the Ciry of Seward, Alaska, a home rule municipal corporation, organized under the laws of the State of Alaska whose address is P.O. Box 167, Sewazd, Alaska 99664 (the "City") and 1Plus1 Corporation, dba Major Marine Tours, an Alaska corporation, P.O. Box 101400, Anchorage, Alaska 99510-1400 ("Lessee"). WHEREAS, the City, as lessor, and the Lessee entered into a lease for the real property described as: Lot 6, Block 6, Seward Small Boat Harbor Subdivision, as shown on Plat 2000-19, Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, the Ciry and Lessee now desire to terminate the lease; NOW THEREFORE, IN CONSIDERATION ofthe foregoing recitals and mutual promises and covenants herein, the parties hereby agree as follows: The lease of the Property described in the above recitals is hereby terminated effecfive upon execution by all parties of this Agreement and subject to Resolution No. 2008-_ of the City. Each party has full power and authority to enter into this Agreement and no further action or approval is required to cause this Agreement to be binding and enforceable against either party in accordance with its terms. C:\Documents and SettingsUim.HARBORMASTF.R\l.ocal Settings\Temporary Internet Files\OLKE1VvIMTours Termination of Lease 2008.doc Page 1 43 01/21/2008 14:12 19073452402 NA BOUWENS PAGE 02102 01118(200$ 11:51 9072245900 REh10bgJ TOLItS PAGE 04(04 LISSSOR: THE CITY Olt STi:WARD By: I'hilfip Ostirs, City Maua®ra ATTEST: watt Lewis! CMC City Clerk STATE OF ALASKA )~ THppRU JUbICIAL AISTRTt`T ) LE$9TLE: iPlosl Carporstias, dba Majer 1Vlarfiue Toars, As saoceasor is itaeereat Mo EeKrAld Sea, Tae. l/~" gay: l%S~ Prdeid*at 5/ T That`emgoio~ginsitumentweaedmowled~edbeforemethis~dayof .Z008, by Phillip pates, City Manages of the City of sward, Alaslra, otx bebalf of the City. Nomry Public in mil rux Alaska lv~y Commission Expires: STA'T'E OF ALASIfA ~ StaBe o Adas&ca TIIIItD JWICIAI. FISTTtICT ) 85: ITT®~ARY P'~7$LIC Linda Brandon 'T'hefn~egoingiustrmtuerttwasaFk~-vwledgedbetoiemCtllis l~$dayot; 1Gt1uAV/~ ,~wa, by ~,j,(.~G(~ Rouiots S 'T of the TP1us1 Corporation. an behalf of the rar'pn[eaon otary Public to and for Al~~~ t.'UIDmi~elOX1 ~Cp1iCa:2 C'~DoagmltirOd Sdha~Vim.~14~9epiC~fTtll~fOeNyF~KiF~r,KE11~u@AT0m9 tl~YtlO~C~raYO2006.10C P9g0 2 4 =~ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO TERMINATE THE 2004 JOINT USE AGREEMENT WITH STATE OF ALASKA FIRE SERVICE TRAINING AND ALASKA VOCATIONAL TECHNICAL EDUCATION CENTER AND ENTER INTO A LEASE AGREEMENT WITH THE STATE OF ALASKA DEPARTMENT OF ADMINISTRATION FOR APPROXIMATELY 7.79 ACRES DESCRIBED AS THE UNSUBDIVIDED REMAINDER OF BLOCK 1, FOURTH OF JULY CREEK SUBDIVISION, 5EWARD MARINE INDUSTRIAL CENTER, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, FOR THE PURPOSE OF CONSTRUCTING AND OPERATING AFIRE/SAFETY TRAINING FACILITY BY THE ALASKA VOCATIONAL TECHNICAL EDUCATION CENTER. WHEREAS, in 2004 the City entered into a joint use agreement for cooperative use ofCity- owned land in the Seward Marine Industrial District for purposes of constructing and operating a fire/safety training facility; and WHEREAS, the Alaska Vocational Technical Education Center ("AVTEC"), as an instrumentality ofthe State of Alaska, would like to lease the land from the City, which would allow AVTEC to utilize State funds to continue construction and expansion of the facility; and WHEREAS, the Department of Administration is the department of the State that coordinates leases, would pay a reduced rent of $500 per year and would continue to allow the City to use the site for fire and other safety training purposes; and WHEREAS, a lease for less than fair market rental value will service the public interest by providing benefits to the City in having a fire/safety training facility available, and other intangible benefits to the community from having trained emergency responders in our community; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to terminate the 2004 joint use agreement related to the fire/training center and enter into a the lease agreement with the State of Alaska Department ofAdministration and the use agreement with the Alaska Vocational Education Center, both in substantial form as presented at this meeting. Section 2. The recitals above are incorporated herein by reference. Page 1 of 2 •J CITY OF SEWARD, ALASKA RESOLUTION 2008-005 Section 3. This resolution shall take effect thirty days after its adoption and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`n day of January, 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC, City Clerk (City Seal) ~u Council Agenda Statement Meeting Date: January 28, 2008 Through: Philip Oates, City Manager From: Kirsten Vesel, Assistant City Manager ~i~ Dave Squires, Fire Chief Agenda Item: Authorizing the City Manager to terminate the joint use agreement and enter into a Lease Agreement with the State of Alaska Department of Administration for use of land by Alaska Vocational Technical Education Center (AVTEC) for constructing and operating a fire training facility and sign a Use Agreement with AVTEC. BACKGROUND & JUSTIFICATION: The City and AVTEC are currently working under a joint use agreement to provide fire training services on land owned by the City in the Sewazd Marine Industrial Center ("SMIC"). AVTEC, through the State of Alaska, desires to lease the land at less than fair mazket rental value and inconsideration for the reduced rent the City will continue to have use of the site for training purposes. A public hearing was scheduled in May 2006 for the purpose of seeking council approval for a lease, but the lease was pulled from the agenda at AVTEC's request. In August 2006, AVTEC notified the City it was interested in purchasing, rather than leasing, the property. In late fa112006, Council held a work session to heaz from AVTEC representatives, and others, ideas about leasing or purchasing the land, and continued joint use by the City. Following the work session, the City Manager met with AVTEC representafives to discuss terms of an agreement. Since that time period City Staff and Administration have had many discussions on different versions of the lease and use agreements. The lease presented today for Council's approval would lease approximately 7.79 acres of City land to the State of Alaska for $500 per yeaz rent. The City would be permitted to continue to use the facility for training purposes. The State, through AVTEC, would construct the necessary facilities to provide fire and emergency response training under a variety of scenarios. Upon execution of the lease, the existing agreement for joint use would terminate. As apart of the lease a new use agreement was developed which cleazly identifies each parties responsibilities for the Fire Training Facility. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Sewazd City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: The City would receive $500 per yeaz rent and would retain use of the facility for training purposes. _ ~ Approved by Finance Department b~'~~~%~=~Gt-~fl~f~ ~} RECOMMENDATION• Council approves Resolution 2008- 00 5 authorizing the City Manager to terminate the 2004 joint use agreement and enter into a Lease with the State of Alaska Department of Administta6on for the fire training facility in SMIC for $500 per yeaz rent and sign the Use agreement with the Alaska Vocational Technical Education Center. r 3 FINAL, Includes changes accepted by CITY and SOA. LEASE AGREEMENT between CITY OF SEWARD, ALASKA and STATE OF ALASKA Effective Date: 49 TABLE OF CONTENTS ARTICLE 1 -LEASED LAND ............................................................................................................................... 1 - 1.1 DESCR/PT/ON OF LEASED LAND ............................................................................................................... . - 2 - 12 COVENANT OFQU/ET ENJOYMENT, WARRANTY OF T/TLE .......................................................................... . . 2 - 1.3 PROPERTYACCEPTED "AS-/S'~ ................................................................................................................. . . 2 - 1.4 PERM/TS ................................................................................................................................................. . - 2 - 1.5 PLATT/NG ............................................................................................................................................... . - 3 - ARTICLE 2 -LEASE TERM ............................................................................................................................... .- 3 - 2.1 LEASE TERM ........................................................................................................................................... . - 3 - 2.3 OPT/ON TO PURCHAS'E ............................................................................................................................ . - 3 - 2.4 EXERC/SE OF OPT/ON .............................................................................................................................. . - 4 - 2.5 ESCROW ................................................................................................................................................. . . 4 - 2.6 PRORAT/ONS AND CLOSING COSTS .......................................................................................................... . . 4 - 2.7 CONDEMNATION PRIOR TO CLOS/NG ....................................................................................................... . . 5 - ARTICLE 3 -RENTAL RATE ............................................................................................................................ .. 5 - 3.1 /N/T/AL RENTAL RATE .............................................................................................................................. . - S - 3.2 C/TY USF. OF FAC'/L/T/ES ......................................................................................................................... . - 6 - ARTICLE 4 -USE OF LEASED LAND .............................................................................................................. .. 6 - 4.1 USE OF LEASED LAND ............................................................................................................................. . . 6 - 4.2 ORr./cArioNS of LESSEE ...................................................................................................................... . . 6 - 4.3 NO PREFERENTIAL R/cers ro USE Pueuc FAC/L/TrES ............................................................................ . . 6 - 4.4 ADEQUACY OFPUBL/C FACIL/T/ES .......................................................................................................... ..6- 4.5 TARIFFS AND OTHER SERV/CE FEES ......................................................................................................... . . 7 - 4.6 TIME F'OR PAYMENT OF UT/L/T/ES ............................................................................................................ . - 7 - 4.7 OTHER Uses ........................................................................................................................................... . - 7 - ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 7- 5.1 UTIL/T/ES ................................................................................................................................................ - 7 - 5.2 THBD-PARTYLMPROVEMEN'f.S ........................................................_........................................................ - H - 5.3 EASEMENTS ............................................................................................................................................. - 8 - ARTICLE 6 -CONSTRUCTION BY LESSEE ...................................................................................................- 9 - 6.1 /MPROVEMENTS ON LEASED LAND ............................................................................................................ - 9 - 6.2 CITYREVIF,WOFCONSTRUCTION ............................................................................................................-10- ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS ...............................................................- 10 - 7.1 RETURN OF LEASED LAND IN OR/GINAL CONDITION ................................................................................ - 10 - 7.2 RESERVED .............................................................................................................................................- 10 - ARTICLE 8 -FORCE MAJEURE ...................................................................................................................... 10 - ARTICLE 9 -LESSEE'S ACTS OF DEFAULT ................................................................................................. 10 - ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE .............................................................................. 11 - 11.1 REAL PROPERTY /MPROVEMENTS ............................................................................................................ - 12 - 1 1.2 PERSONAL PROPER%'Y ............................................................................................................................. - 12 - '~ ARTICLE 12 -ASSIGNMENT OR SUBLEASE ...............................................................................................-12 - 12.1 ASS/GNMENT OFLEASE OR$UBLEAS/NC ..................................................................................................-12- ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY .......................................................................- 12 - ARTICLE 15 -INSURANCE ............................................................................................................................... 13 - ARTICLE 16 -CONDEMNATION ..................................................................................................................... 13 - ARTICLE 17 -ARBITRATION ...................................................................................................................... .... 14 - 17.1 ARBITRAT/ON ...................................................................................................................................... ... . 14 - ARTICLE 18 -MAINTENANCE AND REPAIRS ......................................................................................... ...- 15 - 18.1 NORMAL MAlNTENANCE ...................................................................................................................... ... - 15 - 18.2 SAFETr/ssues .................................................................................................................................... ... - 16 - 18.3 COSTOt REPA/RS ............................................................................................................................... ... - 16 - ARTICLE 19 -ENVIRONMENTAL CONCERNS ........................................................................................ .... 16 - 19.1 HAZARDOUS MATER/ALS ..................................................................................................................... ... . 16 - 19.2 PERM/TS AND REPORTING ................................................................................................................... ... . 19 - ARTICLE 21 -CONDITIONS AND COVENANTS ...................................................................................... ...- 19 - ARTICLE 22 - NO WAIVER OF BREACH ................................................................................................... .... 20 - ARTICLE 23 -TIME OF THE ESSENCE ..................................................................................................... .... 20 - ARTICLE 24 -COMPUTATION OF TIME .................................................................................................. .... 20 - ARTICLE 25 -SUCCESSORS IN INTEREST ............................................................................................... .... 20 - ARTICLE 26 -ENTIRE AGREEMENT ......................................................................................................... .... 20 - ARTICLE 27 -GOVERNING LAW ................................................................................................................ .... 20 - ARTICLE 28 -PARTIAL INVALIDITY ........................................................................................................ ...- 21 - ARTICLE 29 -RELATIONSHIP OF PARTIES ............................................................................................ ...- 21 - ARTICLE 30 -INTERPRETATION ................................................................................................................... 21 - ARTICLE 31-CAPTIONS .................................................................................................................................. 21 - ARTICLE 32 -AMENDMENT ............................................................................................................................ 21 - ARTICLE 33 -NOTICES ii 21- ~~ A{ LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664, and STATE OF ALASKA, Department of Administration (the "LESSEE"), whose mailing address is 550 West 7~h Avenue, Suite 1970, Anchorage, AK 99501. WHEREAS, the CITY has identified the need of a fire/safety training area for the CITY's Fire Department and other CITY departments; and WHEREAS, the LESSEE has a maritime safety program, including the fire safety simulator, which it desires to expand and maintain in the CITY; and WHEREAS, the CITY and LESSEE have identified resources that may be available to construct and operate a facility that meets the basic needs for conducting fire/safety training; and WHEREAS, LESSEE has indicated its desire to lease an area of land approximately 7.79 acres in size located in the Seward Marine Industrial Center ("SMIC") more particularly described as Block 1, excluding lots 1 and 2, Fourth of July Creek, Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, the City Council of CITY has determined that a lease of the Leased Land (as defined below) to LESSEE for the purposes described herein (afire and safety training facility) is in the public interest; and WHEREAS, the CITY and LESSEE have agreed that during the term of this LEASE, the CITY shall be allowed to use the Leased Land and the facilities located thereon for its own departments to conduct fire/safety training, provided that such use does not unreasonably interfere with LESSEE'S use as contemplated and permitted under this LEASE; and NOW THEREFORE, for and in consideration of the government-to-government relationship under which this LEASE is entered into between the CITY and the LESSEE, and the mutual promises and covenants hereinafter contained, the parties agree as follows: ARTICLE 1 -LEASED LAND 53 1.1 Description ofLeased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: The unsubdivided remainder of Block 1, Fourth of July Creek, Seward Recording District, Third Judicial District, State of Alaska The Leased Land is also depicted on the drawing attached as Exhibit A, which is incorporated herein by reference. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that: a) Except as otherwise provided in this LEASE, LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; and b) CITY is unaware of any prior conflicting use of the Leased Land that would adversely affect LESSEE's intended use thereof. 1.3 Property Accepted "As-is" LESSEE acknowledges that it has visually inspected the Leased Land and, subject to the results of an environmental study of the Leased Land to be conducted by LESSEE not later than one (1) year from the date signed by all parties, accepts the same "as-is" and without reliance on any expressed or implied representations or warranties of CITY or agents of CITY other than the representations in Section 1.1 and 1.2 hereof. HOWEVER, IF, in the sole determination ofthe LESSEE, the environmental study identifies issues that the LESSEE considers significant, the LESSEE shall have the option to terminate this lease without penalty, damages, liability or any other cost to LESSEE, or seek a compromise with the CITY to remedy the environmental issues identified in the study. 1.4 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 therefore an application for conditional use permits, zoning and re-zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to approve -2- J any such application or permit requests that are not in compliance with CITY ordinances or procedures. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Lessee shall have the right at its option to terminate this Lease upon 30 days prior written notice to the CITY in the event permits from any agency are unreasonably delayed, through no fault of LESSEE. 1.5 Platting If LESSEE requests a replat of the Leased Land, 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. Unless the replat shows the property unacceptable for the purposes of this LEASE, the LESSEE agrees to sign the plat acrd any other documents necessary to complete the platting or replatting of any area including all or a portion ofthe Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat ofCITY-owned real property adjacent to the Leased Land. ARTICLE 2 -LEASE TERM 2.1 Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization Resolution No. 2007-_ (the "Resolution"). The Lease Term shall commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE (the "Effective Date"). The Lease Term shall run for thirty years from the Effective Date, ending at midnight on At the end of the term of this Lease the LESSEE has the right to renegotiate a new lease (which shall be subject to approval by the City Council) or the option to buy the Leased Land by paying the CITY cash in an amount equal to the Leased Land's then current market value. 2.2 Reserved. 2.3 Option to Purchase. a) Provided that LESSEE is in full compliance with all provisions of this LEASE, LESSEE shall have the option upon termination of the Lease Term, to purchase CITY's interest in the Leased Land in accordance with Sections 2.3 through 2.7 herein. LESSEE may not sell, assign, convey, or transfer this option to purchase. There will be no refund of any rent paid to CITY or compensation paid by CITY to LESSEE for any capital improvements made by LESSEE to the Leased Land. -3- ~J J b) If LESSEE exercises the option to purchase the Leased Land, the purchase price of the Leased Land shall be the appraised fair market value of the Leased Land, excluding the value of the improvements constructed and/or paid for by LESSEE. The appraised value of the land will be determined by a certified MAI appraiser and the LESSEE shall pay for the appraisal. c) The purchase price shall be paid at the closing by payment of a cash sum to CITY for the full amount of the purchase price. Upon closing, CITY shall convey title to LESSEE by quitclaim deed. 2.4 Exercise of Option. To exercise the option to purchase, LESSEE shall provide written notification to CITY of its exercise of the option to purchase in accordance with the notice provisions of Article 33 of this LEASE. Notice must be given at least 180 days prior to termination of the Lease Term. 2.5 Escrow. a) Upon both parties' agreement to consummate the sale, appropriate documents shall be recorded and escrow shall close no later than 180 days following LESSEE'S notice exercising its option to purchase. If escrow is not closed on or prior to the scheduled closing date through no fault of the CITY, escrow shall be canceled and the option to purchase provision contained herein shall be deemed null and void. b) In the event LESSEE does not complete the purchase of the Leased Land, LESSEE may continue in possession of the Leased Land under the terms of this LEASE until expiration of the lease term; provided, however, that (1) LESSEE is not in default under the terms of this LEASE, and (2) LESSEE shall pay to CITY, within 30 days of notice provided by CITY to LESSEE, an amount equal to all administrative, legal and other costs incurred by the CITY as a result of LESSEE'S exercise of its option and failure to close. 2.6 Prorations and Closing Costs. a) The "closing costs" shall be those costs incurred in conjunction with closing escrow and shall be paid at the close of escrow as follows: b) All closing costs not otherwise allocated to one party or the other shall be paid on- half by CITY and one-half by LESSEE. c) In the event escrow does not close on the scheduled closing date or another mutually agreed upon date thereafter, the closing costs incurred through the escrow to such -4- 5S date shall be the responsibility of the party at fault. In the event escrow shall fail to close on the scheduled closing date or another mutually agreed upon closing date due to fault of both parties or neither party to this Lease, the costs of terminating the escrow shall be divided equally between the parties. d) LESSEE may obtain title insurance on the Leased Land at LESSEE'S sole cost. e) The parties represent that no realtor commissions are to be paid in connection with the execution of the LEASE or the LESSEE'S election to purchase the Leased Land. 2.7 Condemnation Prior to Closing. If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity prior to exercise of the option to purchase by LESSEE, the option to purchase described herein shall become null and void. The LESSEE may continue to occupy the Leased Land until the expiration of the lease term as a lessee under the terms of this LEASE subject to resolution of the condemnation proceedings. The rights of the parties relating to condemnation shall be resolved between CITY and LESSEE in their lessor-lessee relationship under the terms of Article 16 of this LEASE. 2.8 Fiscal Necessity -Non-appropriation of Funds The fiscal year for the State of Alaska is a twelve-month period beginning July 1 and ending June 30 of the following calendar year. Lease payments from the State are subject to annual appropriation of funds by the Alaska State Legislature. After the initial fiscal year of the lease, the State has the right to terminate this lease in whole, or in part, if (1) the Alaska State Legislature fails to appropriate funds budgeted for continuation of this lease, and/or (2) the Alaska State Legislature fails to appropriate funds to the occupying agency(s) that results in a material alteration or discontinuance, in whole or in part, of the occupying agency(s)' programs. The termination of the lease for fiscal necessity and non- appropriation of funds under this section shall not cause any penalty or liability to be charged to the State, and shall not constitute a breach or an event of default by the State. Construction of facilities on this leased land is also contingent upon receipt of federal funds earmarked for that purpose. The State has the right to terminate this Lease in whole, or in part, if the anticipated federal funds are not received. ARTICLE 3 -RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE the annual rental rate for the Leased Land shall be set at FIVE Hi JNDRED DOLLARS ($500.00). This rate shall remain firm through out the term of this lease and any extensions thereto. Rent shall be payable in advance upon the Effective Date of this Lease and July 1 of each year thereafter. 5- ~/ 3.2 City Use of Facilities. In exchange for LESSEE'S payment of less than fair market value rent, the CITY and LESSEE have agreed that during the term of this LEASE, the CITY shall be allowed to use the Leased Land and the facilities located thereon, 26 times per calendar year without charge, for its own departments to conduct fire/safety training, provided that such use does not unreasonably interfere with LESSEE'S use as contemplated and permitted under this LEASE. CITY and LESSEE agree to follow the Use Agreement for use of the facilities located on the Leased Land as established by the "Operational Use Agreement" attached as Exhibit B and incorporated by this reference. The Operational Use Agreement may be amended from time to time upon written agreement of City and Alaska Vocational Technical Center (AVTEC).. ARTICLE 4 -USE OF LEASED LAND 4.1 Use ofLeased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) Unless otherwise provided in this LEASE, if LESSEE does not elect to purchase the Leased Land, the Leased Land is to be returned to the CITY in accordance with Article 7 upon termination of this LEASE. b) 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. c) LESSEE shall continue to conduct fire/safety-related operations on the Leased Land.. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port or other facilities constructed or operated by CITY. LESSEE will be subj ect 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. 4.4 Adequacy of Public Facilities. CITY makes no representations orwarranties as tothe 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 itselfthat 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 of the site or the -6- tr J accuracy of any information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations and scheduled fees from time to time even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities LESSEE will pay for utilities related to its operations on the Leased Land and LESSEE'S interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE'S sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE'S intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE'S planning and engineering of those improvements. All utilities will be located and sized in accordance with CITY'S Master Plan covering the Leased Land. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public rights-of--way or within public utility easements will normally be accepted and maintained by CITY or utility companies and may be used to serve other customers of the LESSEE without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such over sizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of over sizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. Nothing in this -~- paragraph prevents the CITY, in its own discretion, from installing or maintaining all or any portion of the utilities extended to the Leased Land as described in this pazagraph. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. Notwithstanding anything to the contrary in this Article 5, and if so requested by LESSEE, CITY shall, at CITY's sole cost and expense, extend a capped water line 5 feet inside the Leased Land at the South East property line. Such extension is conditional on CITY first installing a water line and fire hydrant in the adjacent road right of way. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE, covenants, conditions and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land for its intended purposes subject, however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. h1 any of the foregoing instances referred to in this Section, CITY shall be without expense therefore, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adj acent lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage, gas, power line and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this -8- ~~ LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE'S operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 -CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and material men's liens. c) Prior to commencement of construction, LESSEE shall provide the City Manager 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--way or easements. Within 60 days following completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) CITY may, as contemplated by Alaska Statutes, give notice ofnon-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. 9- V~ f) LESSEE shall comply with all applicable federal, state and local statutes, regulations, ordinances and resolutions with respect to such construction, including but not limited to all applicable building, mechanical, and fire codes. Copies of all performance and payment bonds, if any, shall be provided to the CITY. 6.2 City Review of Construction. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE'S plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights-of--way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Condition. Subject to the provisions of Sections 2.3 through 2.7 and Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE, shall return the Leased Land to CITY in a clean and safe condition. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE'S operations or use of the Leased Land during this LEASE. 7.2 Improvements. Upon termination of this LEASE for any reason, LESSEE shall remove all improvements installed by LESSEE. Alternatively, upon acceptance by CITY, specified improvements may remain on the Leased Land and ownership shall be transferred to the CITY. ARTICLE 8 -FORCE MAJEURE hi the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or escalation of war or terrorism, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 -LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: -10- U s~ 9.1 Failure by LESSEE to pay fully and promptly when due, and in no event later than thirty (30) days from the due date thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this LEASE for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.3 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough (not preempted by state or federal law), the State of Alaska or of the United States Government applicable to LESSEE'S use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall in good faith contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined, provided such proceedings are diligently pursued. 9.4 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 10.1 Whenever an act of default by LESSEE shall have occurred, and any applicable period For giving notice and any opportunity to cure has expired, CITY shall have all rights and remedies that maybe given to CITY by statute, ordinance, common law or otherwise. The CITY may recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of a breach or default by LESSEE. 10.2 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess -tt- 63 the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.3 No expiration or termination of this LEASE shall expire or terminate any liability or obligation of LESSEE to perform which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. Subject to sections 2.3 through 2.7 hereof, all other improvements constructed by LESSEE on the Leased Land or on easements to or from the same, such as the fire simulator, buildings, warehouses, conveyor systems, excluding ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY for removal and such removal shall be completed by LESSEE without cost to CITY. 11.2 Personal Property. Upon termination of this LEASE for any reason other than default by LESSEE, LESSEE may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 -ASSIGNMENT OR SUBLEASE 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 this LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent. ARTICLE 13 -INDEMNIFICATION The CITY shall indemnify, defend, and hold the State of Alaska harmless from any liability, action, claim, suit, loss, property damage, or personal injury of whatever kind resulting from or arising out of any act of commission or omission by the CITY, or its agents, employees, guests, invitees, or customers; or arising from or connected with the CITY'S use and occupation of the premises; or arising from or connected with the exercise of the rights and privileges granted by this Agreement to the CITY. -12- s The State shall indemnify, defend and hold the CITY harmless from any liability, action, claim, suit, loss, property damage, or personal injury of whatever kind resulting from or arising out of any act of commission or omission by the State, or its agents, employees, guests, invitees, or customers; or arising from or connected with the State's use and occupation of the premises. If there is a claim of, or liability for, the joint negligence errors or omissions of the CITY, and the State including their employees, agents or contractors, then liability shall be apportioned on a comparative fault basis. The obligations of this agreement to indemnify shall survive the expiration or termination of the Lease. ARTICLE 14 -Reserved. ARTICLE 15 -INSURANCE 15.1 The LESSEE shall secure or purchase at its own expense and maintain in force at all times during the term of this Lease, the following policies of insurance. 15.2 Workers Compensation Insurance: The LESSEE shall provide and maintain, for all its employees, coverage as required by AS 23.30.045 by maintaining status as a authorized self insured employer per AS 23.30.090, and where applicable, comply with any other statutory obligations. LESSEE waives any right of subrogation against the CITY that might arise from injuries to state employees during LESSEE'S use of the premises. 15.3 Commercial General Liability Insurance: Such policy shall have minimum coverage limits of $500,000.00 combined single limit per occurrence. 15.4 The LESSEE represents and warrants, that it is insured to at least the level of coverage required by this Agreement, through self insurance. ARTICLE 16 -CONDEMNATION 16.1 If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event -13- s of a single award to CITY which includes specific damages for loss of LESSEE'S leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. 16.2 If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (1 S) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement ofthe rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17 -ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.300 et sec .), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value ofmore than Fifty Thousand Dollars and No/100s ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than Fifty Thousand Dollars and No/100s ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim, dispute or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than Fifty Thousand Dollars and No/100s ($50,000). The costs and expenses of arbitration shall be shared equally -14- 6S by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18 -MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE'S sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non-abusive use. LESSEE shall maintain in first -15- 6'7 class condition at all times all fire, pollution and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE'S maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE'S operation such that the surrounding land or port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perfonn such maintenance work. As soon as practicable following receipt of said engineer's detenninations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE'S cost, risk and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities or adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator LESSEE shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then CITY shall reimburse the LESSEE within 30 days of arbitrator's decision. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitrator shall give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall, at the option of the CITY, either construct such improvements at LESSEE'S own cost or reimburse CITY for such work. ARTICLE 19 -ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. 16- 63 a) Condition of Site. LESSEE at LESSEE's sole cost, will examine the site for the presence of any Hazardous Materials, including the conduct of a baseline soil and water tests prior to the effective date of this LEASE, and subject to the rights in Paragraph 1.3 accepts the site in "as is" condition. 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), for all periods during and after the term of this LEASE, and resulting from the use, keeping, storage or disposal of Hazardous Material on the Leased Land by LESSEE, or arising out ofor resulting from LESSEE's operations at the Leased Land except for those claims arising out of CITY's use ofthe Leased Land under the Use Agreement. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE'S authorized use of the Leased Land. ii) Any Hazazdous Material permitted on the Leased Land as provided in this paragraph, and all containers therefore, shall be used, kept, stored and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) Except in accordance with all applicable Environmental Laws, LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked or emitted, any material into the atmosphere, ground, ground water, sewer system or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition, use or enjoyment of the Leased Land or any other area or personal property. 17- U~ iv) Except as provided in the Operational Use Agreement, LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of, or noncompliance with the provisions of this subparagraph. d) Indemnification of CITY. Except as provided in the Operational Use Agreement, LESSEE shall defend, indemnify and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney, consultant and expert fees, court costs and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of or noncompliance with any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only ifthe acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (1) occur during the term of this LEASE; and (2) arise in whole or in part from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's, employees, agents, invitees, contractors, subcontractors, authorized representatives, or subtenants. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) 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 -18- Environmental Law. Hazazdous Material includes any and all material or substances which are defined as industrial waste hazazdous waste, extremely hazardous waste or a hazazdous 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. f) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all applicable local, state and federal ordinances, statutes, and regulations, as now in force or as maybe amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carved out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence with and Reports to Environmental Agencies. LESSEE shall immediately provide CITY with copies of all correspondence and notices, including attachments, of all reports between LESSEE and any state or federal government or agency regulating Hazardous Material which relates to LESSEE'S operations on or use of the Leased Land ARTICLE 20 -CONDITIONS AND COVENANTS -19- All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 21 - NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 22 -TIME OF THE ESSENCE Time is of the essence as to each provision of this LEASE. ARTICLE 23 -COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then each such day is also excluded. ARTICLE 24-SUCCESSORS IN INTEREST Each and all of the terms, covenants and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 25 -ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 26 -GOVERNING LAW This LEASE shall be governed by, construed and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they maybe hereafter amended, -zo- w including without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 27 -PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. ARTICLE 28 -RELATIONSHIP OF PARTIES This is agovernment-to-government lease, and nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 29 -INTERPRETATION The language in all parts ofthis LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE, as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 30 -CAPTIONS Captions of the articles, paragraphs and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions ofthis LEASE. ARTICLE 31 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 32 -NOTICES All notices, demands or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. 21- "r' 3 All notices, demands and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD P.O. Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: State of Alaska Division of General Services Leasing Section 550 West 7`~ Ave., Suite 1970 Anchorage, Alaska 99501 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 33 -FIRE PROTECTION LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD STATE OF ALASKA General Services and Supply By: Its: City Manager 22 - By: Ben R. Milam, CPPM, C.P.M. Its: Contracting Officer w ~ `~ STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2007, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared known to me and to me known to be the City Manager for the City of Seward, Alaska, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2007, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Ben R. Milam, CPPM, C.P.M., known to me and to me known to be the Contracting Officer, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the State of Alaska for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. Wendy M. Gillespie Notary Public in and for Alaska My Commission Expires: December 17, 2007 24 - rt n 17 Lot 1, Blk 1 Spring Creek Sub-Station O Lot 2, Blk 1 Shoreside Petroleum _ - ~ J7 _- Q Z Lot 2, Blk 3 l Lot 3, BIk 3 IV C Lot 1, Blk 3 Lol BIN _-MOBRIS_AVENUE Seward Marine Industrial Center Fourth of July Creek Subd 0 195 390 Feet W W ~' H z_ a J W 17 ;~ AVTEC Fire Training Center N Proposed Lease Location Map cneokaa ny: DGlenz Alaska NYp Compsn;y Date: City Council Mt9 1/28/2008 Block 1, Excluding Lots 1 & 2 Proposed AVTEC Lease Site Blk 2 Exhibit B USE AGREEMENT Between Alaska Vocational Technical Center and City of Seward FINAL, with all changes accepted by CITY and SOA This is an agreement ("Agreement") between the: Alaska Vocational Technical Center (AVTEC) of the Alaska Department of Labor & Workforce Development P.O. Box 889 Seward, AK 99664 (907)224-3322 FAX # (907)224-4143 and the City of Seward (City) P.O. Box 167 Seward, AK 99664 (907)224-4047 FAX # (907)224-4038 The purpose of this Agreement is to define the roles and responsibilities of AVTEC and the City with regard to the use of AVTEC's Fire Training Facility (FTF) located on property leased to the State of Alaska by the City. IN THE EVENT THERE IS A CONFLICT BETWEEN THE TERMS AND CONDITIONS OF THIS AGREEMENT AND THE TERMS AND CONDITIONS OF THE LEASE, THE TERMS AND CONDITIONS OF THE LEASE WILL PREVAIL. This Agreement shall run concurrent with the lease of the property and shall be reviewed for any changes every two years. Either party may suggest changes to the Agreement at any time and changes can be made as mutually agreed upon by the City Manager and Director of AVTEC, HOWEVER, changes to this agreement cannot be made to change terms and conditions of the Lease. %~ Page 2 of 7 AVTEC/City Use Agreement THE ALASKA VOCATIONAL TECHNICAL CENTER AGREES TO: 1. Provide the City with access to the FTF and fire training equipment to support the City's fire training/emergency response training activities at dates and times as mutually agreed upon. Such access will only be denied if it interferes with previously excluded AVTEC training, or conflicts with previously scheduled use of the facility. The City shall have priority for use of the FTF over all other unscheduled non-AVTEX entities. Develop and provide the City a current FTF Use Procedures Guidebook for all parts of the facility to include a consumable fee schedule and incident reporting and response procedures as each portion of the facility is developed. Maintain the FTF and equipment to meet or exceed NFPA Standard 1403 or standards set by the Alaska Fire Standards Board for live fire training. 4. Provide the City a seat on AVTEC's Maritime Department Advisory Committee to provide public commitment and assistance to AVTEC regarding FTF's suitability to meet its intended purpose in a safe and professional manner. 5. Notify the City in writing at least 20-days in advance or a soon as possible of FTF closures due to construction, maintenance work, or other conditions that render the FTF unsafe or unusable. 6. Provide (make available) all janitorial supplies, such as cleaning products, paper products, and light bulbs, etc. Maintain and repair AVTEC-owned facilities, equipment, and structures located within the FTF facility in a clean and operational condition. 8. Approve or deny requests of City use of the facility within three business days of such requests. 9. AVTEC commits to maintain a suitable quantity of all normally required consumable supplies on site for scheduled training. Consumables not normally required for AVTEC use will be the responsibility of the City. 10. Respond to maintenance work orders, recommendations on safety hazards and other reports per written guidelines submitted by the City and as listed in Appendix AA. 11. Review and address repair and maintenance requests within the time frames and guidelines listed in Appendix BB. `~ Page 3 of7 AV7EC/City Use Agreement 12.Invoice the City for consumable supplies used by the City and any damage to equipment, facilities or structures caused by the City. THE CITY OF SEWARD AGREES TO: 1. Provide AVTEC a schedule of intended usage of the FTF a minimum of 10-workdays in advance of use and provide a list of possible consumables for use during the training session(s). 2. Ensure only authorized and trained City employees as mutually agreed upon are present at the FTF to supervise all training activities conducted or sponsored by the City. 3. Perform and document a FTF and equipment pre-use inspection prior to operational use on an AVTEC provided pre-use inspection form. 4. Return FTF facilities, equipment, and structures to a clean and operational condition upon completion of each training event. 5. Notify AVTEC in writing of all consumable training and/or cleaning materials used during or after all training events within 72 hours. 6. Notify AVTEC in writing of any maintenance issues or unsafe conditions of the FTF within 24 hours. 7. Notify AVTEC of any damage to the FTF or training equipment resulting from the City's use of the FTF. 8. Provide a qualified representative to serve as a member of the AVTEC Maritime Department Advisory Committee. 9. Reimburse AVTEC for replacement or repair of damaged equipment, caused by City use and replacement of all consumable supplies and materials used by the City within 30 days of receipt of invoice. ADA COMPLIANCE: AVTEC acknowledges that the FTF is a public facility and AVTEC shall comply with all applicable provisions for the American with Disabilities Act (ADA), and regulations promulgated there under with respect to the FTF and services provided under this u0 Page 4 of 7 AVTEC/City Use Agreement Agreement. AVTEC shall not be responsible for any ADA requirements applicable to the City, its agencies or subcontractors. The City shall make inquiry of it's prospective participants as to any special requirements that may be required and in the event that the City is given actual notice that a participant in the program will have special needs, the City shall notify AVTEC of the special needs reported by the individual(s) and shall cooperate with and assist AVTEC in providing reasonable accommodation to the identified special needs. AVTEC shall not be responsible for any claims, suits, penalties, fines, damages or liability caused in whole or in part by the City's failure to adequately notify AVTEC of the special needs of any of its participants or employees. The City shall be solely responsible for ADA compliance in supplying auxiliary services or aids for its specific classes, programs, and all other City activities or events. CONFLICT RESOLUTION: In general, resolution of any discrepancy or situation that results from following the guidelines established by this document or not covered by provisions of this document shall be resolved by representatives of each parry signing this Agreement in the following order: Level 1 Appropriate City Official and AVTEC Instructional Administrator Level 2 City of Seward Manager or designee and AVTEC Director It is expected that all matters pertaining to security, maintenance, supplies, programming, scheduling, and facility use in general will start at Level 1. Any situation requiring amendments to this Agreement or resolving personnel issues will begin at Level 1 and progress to a level 2 for a final resolution. State of Alaska City of Seward Alaska Vocational Technical Center By: Fred Esposito, By: Phillip Oates, Director City Manager Date: ATTEST: Jean Lewis, City Clerk, CMC Date: Date: 5' Y Page 6 of 7 AVTEC/City Use Agreement APPENDIX AA PROCEDURES FOR REQUESTING SUPPLIES, EQUIPMENT & MAINTENANCE, AND FOR REPORTING DAMAGES, & SECURITY BREACHES A. REQUESTING SUPPLIES AND EQUIPMENT 1. All requests for supplies and equipment are sent from the City to AVTEC. B. REQUESTING ROUTINE MAINTENANCE 1. Work orders for routine or incidental maintenance on equipment or the facility are emailed or faxed to the Maritime Department on a standard Work Order form. The Maritime Department will coordinate the work order with staff to complete. C. REQUESTING IMMEDIATE MAINTENANCE 1. Maintenance needing immediate attention (emergency, hazardous, or urgent situations) is reported to the AVTEC Maritime Department Head or AVTEC Administration. D. HANDLING LIFE THREATENING EMERGENCIES 1. Should alife-threatening emergency develop, affecting the immediate safety and life of City staff or students during use of the FTF, call 911 immediately. 2. If necessary, follow AVTEC evacuation procedures for the facility. E. REPORTING CRIMINAL ACTIVITY 1. City staff verbally report all evidence of criminal activity such as a break-in or vandalism first to the police, second to the AVTEC staff. F. REPORTING OTHER SAFETY/SECURITY PROBLEMS 1. Evidence of safety hazards or security breaches, such as unlocked doors, are logged and reported to AVTEC staff. 2. Likewise, breaches noted by AVTEC staff are reported and a report copy sent to the City. 83 Page 7 of 7 AVTEC/City Use Agreement APPENDIX BB AVTEC FACILITY/EQUIPMENT REPAIRS AND MAINTENANCE: REVIEW AND RESPONSE TIMES A. EMERGENCY, HAZARDOUS, AND URGENT MATTERS The City will notify AVTEC as soon as the problem is discovered (See Appendix AA for procedures). AVTEC will respond immediately, within no later than one hour if reported during regular business hours. If reported after normal business hours or on holidays or weekends, AVTEC will respond within three hours AVTEC will notify the City of any safety measures or closures as soon as these are known. B. ROUTINE & INCIDENTAL FACILITY/EQUIPMENT REPAIRS & MAINTENANCE AVTEC will respond to written Work Orders within 72 hours, i.e. assign the work order to be reviewed and completed (See Appendix AA). When response is untimely, the City may call the AVTEC Director or Assistant Director to discuss the maintenance issue. AVTEC and the City designee will then determine a mutually agreeable solution to resolving the maintenance problem. C. SCHEDULED MAINTENANCE Inform the City in writing, in advance, of any maintenance which will close or affect City training on a quarterly basis. Note- Scheduled maintenance will be arranged, to the extent possible, so as not to interfere with scheduled training activities. -~ Sponsored by: Phillip Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT IN THE AMOUNT OF $1,299.60 FROM THE ALASKA HIGHWAY SAFETY OFFICE FOR 2008 SECOND QUARTER ASTEP DRIVING UNDER THE INFLUENCE (DUI) ENFORCEMENT CAMPAIGN AND APPROPRIATING FUNDS WHEREAS, the Seward Police Department has been awarded a Program Coordination Grant from the Alaska Highway Safety Office, in the amount of $1,299.60; and WHEREAS, the City is not required to provide any cash or in kind match; and WHEREAS, the use of these funds must be for the purpose ofproviding overtime saturation patrols by the Seward Police Department for the enforcement of DUI violations during January, February and March of 2008; and WHEREAS, these funds will be of essential assistance to the Seward Police Department in the enforcement of DUI violations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section I. The City Manager is hereby authorized to accept the 2008 ASTEP DUI Enforcement, Alaska Highway Safety Office grant in the amount of $ ] ,299.60 and enter into a grant agreement. Section 2. Funding in the amount of $1,299.60 is accepted to grant revenue account no. 101-0000-4680-0200 and appropriated to the police department's overtime account, no. 101-1210- 5020. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`" day of January, 2008. ~J Council Agenda Statement Meeting Date: January 28`s, 2008 To: Phillip Oates, City Manager From: Tom Clemons, Chief of Police Agenda Item: Alaska Highway Safety Grant (ASTEP DUI `08 Second Quarter Enforcement) BACKGROUND & JUSTIFICATION: The Alaska Highway Safety Office, AHSO, has requested that the City of Sewazd continue to participate in the Alaska Strategic Traffic Enforcement Partnership, ASTEP, DUI Overtime Enforcement campaign by providing overtime saturation patrols. During selected holidays, the blitz campaign, and assigned weekends, the Seward Police Department will conduct high-visibility DUI enforcement patrols. AHSO has awazded a grant in the amount of $1,299.60 for January, February and March 2008. This program is a 100% grant funded project, with no local matching funds required. The terms of the gant and the grant budget are attached. INTENT• The intent of this grant is to save lives by arresting and punishing alcohol and drug impaired drivers and maintain current public perceptions of DUI enforcement issues. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: There is no local funding required to match these grant funds. Approved by Finance Department: y~,/,~j ~it.!~tG,-P/~ RECOMMENDATION: City Council approve Resolution 2008-D03 , accepting a grant from the Alaska Highway Safety Office in the amount of $1,299.60, and appropriating funds. 86 JRN-10-2008 08:42 From: , e ~ ~. F -~> Notice to Proceed ;; :_ ~, e, To:907 224 8480 P.2~2 Scare of Alasko lleprmmem of Transpnnntion and Public Facilities 3132 Chonncl Ur 1'0 t9ox 112SW luneaa Alc n9xl I-zwo p: ~xn-~RS_z44K e. ~w7ais-4u3u tlot,elaske.pov/hiphweysefety You may proceed whh the activities for the Categories and specific Tasks enumerated below In the Funding Summary. Any activhles beyond the wdnan scope andlor any costs above the price estimate in our Aproemant roqulre prior AHSO approval and a Project Revision. Actual coal. urMafrun of the Contract Amount for any Category shall nd routinely accumulate for other Categories. AHSO reserves the dght to retain or reallocate any romainittg funds resultlnp from such cost untlerruns. TAIs NTP K cumulallve and k supaKedes all prfof NTPs foi fhls Agreement. The AHSO Adminislretor for this NTP is: Cindy Cashen laeuee r« Ibe Conlraetlnp Apeggy per ADO~TePf Peliey YOf -01.0}0 ~- Aeeopad f« ale OmMes by Name: Cindy Ca~hbr/ _ _ I Name: Lt. Tiner FUNDING SUMMARY Totol Amount Totol Amount Approved tot thle NTP Authod2ed Tasks Authonzod to Date As aNhorlied in the Program Coordination Grenl eom January t, 2110a to March 51,298.80 31, 2006. 52,588.60 Vehitle usage is inWUded at 55.00 p« hour es referenced in the Proprem Coordination Grant _,,. Collocajion Code Proarem Code 24481827 57870 Legger Code Account Code 30001382 77438 SlpnaWro uae ~umbrnnce Number 2563802 NTP No: 2 Project No' 154AL 08.00-01 Project End Date: 9/30/06 O JRN-0~-2006 09:31 From: To:907 224 8480 P.3~7 State of Alaska Department of Transportation end Public Facilities P.O. Box 112500; Rm if200 Juneau AK 99801 Ph: 907-485-2448 Fx; 807-4854030 www.dot.alaeka.govlhl8hwaysafety Program Coordination Grant _.. Program Aree. Project Coordinator Federal Funding Veer: Impaired Driving 2008 -. _-_ Protect Title' Project Number Alaska Strategic Traffic Enforcement 154AL OB-00-Ot Partnership DUI Overtime Purpose/objectives In order to reduce deaths and injuries caused by impaired drivers and to increase compliance with Alaska's primary seat belt law, the Seward Police Department will conduct high-visibility seat belt end DUI enforcement as detailed in the Alaska Strategic Enforcement Partnership Enforcement Plan submitted to the Alaska Highway Safety Office in 2007. The Seward Police Deoartment agrees to penicipate in the following enforcement blitzes from October 1, 2007 through September 30, 2008. ~ Required DUI Enforcement: to include the major Holidays Month-by-Month Breakdown (Refer to enforcement plan for detail of seal belt and DUI enforcement times): Month Hours -, OUI Enforcem_ _ent _ MonthiY_BudBet January ~ _ 10 hrs DUI _ _ $ 3832 Februar _ __ _ 1 D hrs DUI __ _ ___ $ 383.20 _ March 10 hrs DUI $ 383.20 _..__ _. Vehicle Usa a $5.00 per hour _ $ 150.00 _ Actual coat of overtime to include benefits is not to exceed the following amount: $1299.80 including vehicle usage. Activity covered by this grant must be completed by March 31, 2008. Reimbursement requests must be submitted to the Alaska Highway Safety Office no later than April 15, 2008. To receive reimbursement for personnel services the department must provide overtime sheets, the hourly rates for each officer along with the activity sheets showing total hours being submitted for reimbursement. ~~ SRN-03-2008 09:31 From: Expenses are detailed on page 2 of grant. Budget Summary: BUDGET CATEGORY BUDGET AMOUNT 140 Personal Seivlces v _ $ 1,148.60 200 Travel 6 Per Diem sao venue use e _ s 1so.oo 400 Commodities 500 E ui ent TOTAt_ = 1, 299.60 To:907 224 8480 P.9'7 ' Project M 164AL Oit-00-01 CC 24481827 LC 30001382 PJ 78099. PGM Code RSA N Signed: ~,J w ~ t !v D ~l antee's Project~irector Dat C~ Governor's y Safety Representative Date Sponsored by: Phillip Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT IN THE AMOUNT OF $1,299.60 FROM THE ALASKA HIGHWAY SAFETY OFFICE FOR 2008 SECOND QUARTER ASTEP SEATBELT ENFORCEMENT CAMPAIGN AND APPROPRIATING FUNDS WHEREAS, the Seward Police Department has been awarded a Program Coordination Grant from the Alaska Highway Safety Office, in the amount of $1,299.60; and WHEREAS, the City is not required to provide any cash or in kind match; and WHEREAS, the use ofthese funds must be for the purpose ofproviding overtime saturation patrols by the Seward Police Department for the enforcement of seatbelt violations during January, February and March 2008; and WHEREAS, these funds are essential to the Seward Police Department's ability to enforce seatbelt violations. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to accept the 2008 ASTEP seatbelt Enforcement, Alaska Highway Safety Office grant in the amount of $1,299.60 and enter into a grant agreement. Section 2. Funding in the amount of $1,299.60 is hereby accepted to grant revenue account no. 101-0000-4680-0200 and appropriated to the police department's overtime account, no. 101- 1210-5020. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`h day of January, 2008. Cl 0 v Council Agenda Statement Meeting Date: January 28, 2008 To: Phillip Oates, City Manager From: Tom Clemons, Chief of Police Agenda Item: Alaska Highway Safety Grant (ASTEP SEATBELT '08 Second Quarter Enforcement) BACKGROUND & JUSTIFICATION: The Alaska Highway Safety Office, AHSO, has requested that the City of Sewazd continue to participate in the Alaska Strategic Traffic Enforcement Partnership, ASTEP, Seatbelt Overtime Enforcement campaign by providing overtime saturation patrols. During selected holidays, the blitz campaign, and assigned weekends, the Seward Police Department will conduct high-visibility Seatbelt enforcement patrols. AHSO has awarded a grant in the amount of $1,299.60 for January, February and Mazch 2008. This program is a 100% grant funded project, with no local matching funds required. The terms of the grant and the grant budget are attached. INTENT: The intent of this grant is intended to reduce deaths and injuries by increasing compliance with Alaska's primary seat belt law. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: There is no local funding required to match these grant funds. Approved by Finance Department: __ tG~ L RECOMMENDATION: City Council approve Resolution 2008- 00 y , accepting a grant from the Alaska Highway Safety Office in the amount of $1,299.60, and appropriating funds. t~' JRN-03-2008 09:31 From: i c ~, ~ Notice to Proceed ~ :, r, ~, To:907 224 8480 P.5~7 SInIC of AlnskA DCptlntr~cnl ofTrnnsponalion.md Public FacililiCs 7132 Clmnnel Dr PO 13nx 11251X1 hmc:m AK ~Y)X I I -251X1 p: rx17-a65d4J!~ C 907-4GS.N)7u dot. alaska.gov/hlphweysafety Projed Title: ASTEP Seatbett Enforcement You may proeeetl wllh the adiVdies for the Categories end spadfic Tasks enumerated below M the Funding Summery. Any adlvkles beyond the written scope end/or any costs above the price estimate in our Agreement require poor AMSO approval and a Projed Revision. Adual cost undetrun of the Contrail Amount for any Category shall not routinely accumulate fof other Categories. AMSO reSeNas the ripM to retain or reallocate any remaining funds resuhing from such cost underruns. This NTP Is cumulatlva and h supersedes ell prior NIPS JtOr thLa Agreement The AHSO Administrator for this NTP is.. Cindy Cashen lesued la 1 Conlreclina A y per A 0T6PF Pdicy W 01. Auepled fat Mse Name:. Cindy Cesl~ __ I Nama: Lt~ Pinar FUNDING SUMMARY Total Amount Approved for ihle Totol Amount NTP Authalzod Taeke Authorized to Date As authorized in the Program Coordmtrtion Grant eom January 1, 2008 to March E1,269.80 31,2008. 52,58820 VehlCle usage 16 Included et ES 00 per hour es roferonced In the Program Coerdinelion Groot. Colloc~e fj~ bode 24481013 I_edoer Code 30847562 1 rs n Sianelura Prmram Codrd Aaenl - Prcarem Code 57670 Account Code 77438 AH80 uee only NTP No: 2 Projed No: 4020P 08-04-03 Encumbrence Number Projed End Data: 9/30/08 2583618 92 JAN-03-2008 09:31 From: www.dot.alaska.gov/highwaysafety Program Coordination Grant Program Aree~ Project Coordinator Occupant Protection Project Tdle. Project Numbac Alaska Strategic Traffic Enforcement 4020P 08.043 Partnership Seat Belt Overtime Enforcement Grant Federal Funding Year: 2008 Purpose/Objectives In order to reduce deaths and injuries caused by impaired drivers and to increase compliance with Alaska's primary seat belt law, the Seward Police Department will conduct high-visibility seat bell end DUI enforcement as detailed in the Alaska Strategic Enforcement Partnership Enforcement Plan submitted to the Alaska Highway Safety Office in 2007. The Seward Police Department agrees to participate in the following required enforcement blitzes from October 1, 2007 through September 30, 2008. / Required Seat Belt Enforcement: to include the major Holidays Month-by-Month Breakdown (Refer to enforcement plan for detail of seat belt end DUI enforcement times): To:907 229 8980 P.6~7 State of Alaska Department of Transportation and Public Facilities P.O. Box 112500; Rm 4200 Junaau AK 99811-2500 Ph: 907-485-2448 Fx: 907-485.4030 Hours -Seat Belts Etforcement_ _ Monthly Bud et 10 hrs SB _ $ 383.20 10 hrs SB $ 383.20 10 hrs SB $ 383.20 $5.00 per hour $ 150.00 Actual cost of overtime to include benefits is not to exceed the following amount: $1,299.60 including vehicle usage Activity covered by this grant must be completed by March 31, 2008. Reimbursement requests must be submitted to the Alaska Highway Safety Office no later than April 15, 2008. TO receive reimbursement for personnel services the department must provide overtime sheets, the hourly rates for each officer along with the activity sheets showing total hours being submitted for reimbursement. ~3 JRN-03-2008 09:31 From: Expenses are detailed on page 2 of grant. Budget Summary; BUDGET'CATEGORV BUDGET AMOUNT 100 Personal Services ----- - __ _ ._._$1,149.80 200 Trevel d Per Diem 300 Vehicle Usa a __ $ 150.00 400 Commodities __ 500 E ui ant TOTAL :1,298.80 To:907 224 8480 P.7~7 Project M 402OP OM14.0~ CC 24481813 LC 30947582 PJ 79858 PGM Code RSA tM Signed: /jE~O ~~~ rantee's Project Director D e Governor' y Safety Representative ate C, .~ ..- Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE FUNDS IN THE AMOUNT OF $5000 TO THE SEWARD COMMUNITY FOUNDATION TO PARTICIPATE IN THE 2007-2008 PILOT PROJECT DEVELOPED FOR COMMUNITY ASSET BUILDING, TO INCREASE THE CAPACITY OF LOCAL COMMUNITY ASSETS, TO CULTIVATE LOCAL PHILANTHROPIC LEADERSHIP AND FURTHER SUSTAIN LOCAL NONPROFITS IN THE GREATER SEWARD AREA WHEREAS, the Rasmuson Foundation and the Alaska Community Foundation have developed a 2008-2009 pilot projects available to small communities; and WHEREAS, the City of Seward has the opportunity to fully participate and begin their own Seward Community Foundation; and WHEREAS, the Foundation is developed for community asset building; and WHEREAS, the goal is to increase the capacity of local communities to create permanent assets, cultivate local philanthropic leadership and to further sustain local nonprofits; and WHEREAS, the application to participate is due on February 28, 2008; and WHEREAS, the Seward Community Foundation needs to raise $25,000 in 2008 and raise another $25,000 in 2009; and WHEREAS, the Rasmuson Foundation will match 2:1 ($50,000) of the first $25,000 for a total of $75,000 unrestricted endowment funds and provide a $5,000 grant to a local Seward project; and WHEREAS, the Rasmuson Foundation will match another 2:1 ($50,000) of the second $25,000 in 2009 for a total of $150,000 unrestricted endowment funds and provide an additional $5,000 grant for a second local Seward project; and WHEREAS, the Alaska Community Foundation will provide all administrative oversight for the Seward Community Foundation which will allow the community to begin a foundation without the expense of staff; and WHEREAS, all of the funds will directly benefit the community of Seward; WHEREAS, the City Council contributing $5,000 to the ignition $25,000 will help the Seward Community Foundation qualify for the initial Rasmuson Grant. V CITY OF SEWARD, ALASKA RESOLUTION 2008-006 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Funding in the amount of $5,000 is appropriated from the city council contingency fund account number 101-1110-5690 to the Seward Community Foundation to participate in the 2008 Alaska Community Foundation pilot project. Section 2. This contribution will help initiate the Seward Community Foundation that will qualify for a Rasmuson Foundation 2:1 grant. Section 3. All of the funding of the Seward Community Foundation will directly benefit the community of Seward. Section 4. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28`h day of January, 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) ~J Council Agenda Statement Meeting Date: January 28, 2008 From: Phillip Oates, City Manager ~p Agenda Item: Seward Community Foundat/ion BACKGROUND & JUSTIFICATION: The Alaska Community Foundation is a nonprofit public charity promoting personal philanthropy and providing financial management, strategic development and donor development services to communities, organizations and donors across Alaska. The Rasmuson Foundation and the Alaska Community Foundation have started a 2008-2009 pilot project developed for community asset building. The goal is to increase the capacity of local communities to create permanent assets, cultivate local philanthropic leadership and further sustain local nonprofits. Seward can participate in this pilot project and start their own Sewazd Community Foundation. In order to participate, Seward must raise $25,000 and complete the application by February 28, 2008. In return the Rasmuson Foundation will match these funds 2:1 for a gift of $50,000 and a total of $75,000 unrestricted endowment funds. In addition, the Rasmuson Foundation will award another $5,000 grant to a local Seward project. In 2009, the Sewazd Community Foundation can raise another $25,000 and the Rasmuson Foundation will again match these funds 2:1 for a gift of $50,000 and a total of $150,000 unrestricted endowment funds. If we manage to raise the entire $150,000, the Rasmuson Foundation will provide another $5,000 grant for a local Seward project. A local Boazd will be established to manage the Sewazd Community Foundation grants and educate the community about local philanthropic leadership. The Alaska Community Foundation will provide all administrative oversight for the Sewazd Community Foundation. This allows the Seward Community Foundation the ability to fully function with the expense of a staff and administrative costs. The funds are then thoughtfully invested and management by the board of directors of the Seward Community Foundation. Sepazate funds can be developed to include designated and non designated funds. Donors will have the ability to specify what they want their funds to be used for or allow the Boazd to use their best professional judgment to manage and grant funds to local community projects. CONSISTENCY CHECKLIST: Where applicable, this resolufion is consistent with the Sewazd City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: Funding in the amount of $5,000 is available from the city council contingency fund. Approved by Finance Department: i ~ v~%(G~c/i~(-~ ~~ RECOMMENDATION: Approve Resolution 2008-OOb Appropriating $5,000 from the city council contingency fund account number 101-1110-5690 to the Seward Community Foundation to participate in the Rasmuson/ Alaska Community Foundation 2008-2009 pilot project. ~~ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PAY DUES OWED TO THE ALASKA POWER ASSOCIATION (FORMERLY ARECA) FOR THE YEAR 2008 IN THE AMOUNT OF $18410.00 WHEREAS, the Alaska Power Association (APA, formerly ARECA) is the organization representing telephone and electric utilities in the State of Alaska; and WHEREAS, the APA organization provides a forum and opportunity for interaction and professional coordination of electric utility activities and is an extremely valuable organization for the City to belong to and participate in; and WHEREAS, the dues for APA for the year 2008 are Eighteen Thousand Four Hundred Ten dollars $18410.00; and WHEREAS, It is important for the City of Seward to maintain contact on a professional basis with other electric utilities in the State of Alaska, and in the nation, in order to benefit from their larger sizes which allows us to participate in multiple training and educational programs which we cannot afford to support on the local level. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to pay the year 2008 dues to APA in the amount of Eighteen Thousand Four Hundred Ten dollars $18410.00. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of January, 2008. ~9 Council Agenda Statement Meeting Date: January 28, 2008 Through: Phillip Oates, City Manage From: Tim Barnum, Electric Utility Manager Agenda Item: Payment of 2008 Alaska Power Association Dues BACKGROUND & JUSTIFICATION: Alaska Power Association (formerly ARECA) is the organization representing telephone and electric utilities in the State of Alaska. It is extremely important for the City of Sewazd to meet and work with other electric utilities on common problems of all types and have a voice on electrical issues on the local, state and national political arena. This is the most valuable organization to which the City of Sewazd Electric Utility belongs. The dues for 2008 are Seventeen Thousand Nine Hundred Eight dollazs ($17908.00) and a Reserve Surchazge of Five Hundred two dollaz ($502.00). This brings the total amount due to Eighteen Thousand Four Hundred Ten dollars ($18410.00). The City of Sewazd dues for 2007 were Seventeen Thousand Three Hundred Seventeen Dollars $17,317.00. The 2008 dues are Seventeen Thousand Nine Hundred Eight dollazs ($17908.00) an increase of One Hundred Seventy-seven Dollars ($591.00) and a reserve surcharge of Five Hundred two dollazs ($502.00). The APA Boazd of Directors approved Policy II-6 that authorizes the establishment of a cash reserve account for the trade association as part of a business contingency plan. This surchazge is being applied to all Active and Contributing Members of the trade association. The money is budgeted in account 501-5400-5130. Council approval is required since the dues exceed Ten Thousand Dollazs ($10,000.00). CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: 1~ '~ FISCAL NOTE: Money is budgeted in Account 501 Approved by Finance Department:, RECOMMENDATION: City Council approve Resolution 2008-OOHauthorizing the City Manager to pay year 2008 dues for Alaska Power Association (formerly ARECA) in the amount of Eighteen Thousand Four Hundred Ten dollazs ($18410.00) from Account 501-5400-5130. .i.V~ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING $65,000 FOR THE PURCHASE OF A USED 1996 OSHKOSH SNOWBLOWER FROM THE STATE OF ALASKA VEHICLE SURPLUS AUCTION WHEREAS, it has been determined the 1978 snow blower currently owned by the City of Seward has reached its reliable and useful life; and WHEREAS, due to the limited availability of repair parts and the cost associated with them it wouldn't be fiscally responsible to repair the 30 year old snow blower; and WHEREAS, the State of Alaska has a 1996 Oshkosh snow blower with a "new" truck loading chute attachment available for purchase through the D.O.T. surplus vehicle auction at a price of $65,000; and WHEREAS, a complete vehicle maintenance check of the 1996 snow blower found the equipment to be in good working condition; and WHEREAS, the cost to purchase a new snow blower would be in excess of $520,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to spend an amount not-to-exceed $65,000 for the purchase of the 1996 Oshkosh Snow Blower from the State of Alaska. Section 2. Funding in the amount of $65,000 is hereby appropriated from the motor pool fund account 102-1020-5930. Section 3. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28`h day of January, 2008. w -. Y~~~- Council Agenda Statement Meeting Date: January 28, 2008 To: Phillip Oates, City Manager ~~j From: W.C. Casey, Public Works Director Aeenda Item: Purchase of State Surplus Snow Blower BACKGROUND & JUSTIFICATION: In 2007, the Public Works staff assessed the feasibility of attempting to repair the 1978 Snow Blower that was purchased for $5,000 in the early 90's from the State Surplus Division. It has been determined, that due to the difficulty in obtaining parts and keeping the machine in good working order, that it is not cost effective to spend the $30,000-$50,000 to make this machine operable. It has served its useful life and should not be put back into service. Staff pursued the feasibility of purchasing a "new" snow blower by using the governmental piggy- back provision and found the price for a snow blower to be in the $520,000 price range. Attempting to be frugal, staff checked with the State Procurement Office and found a surplus blower for $80,000. Further inquiries with the State Surplus folks indicated that the blower available was a 1996 Oshkosh Snow Blower and was located in the AKDOT maintenance yazd in Palmer. The blower came from the Silvertip AKDOT maintenance station. Two Public Works staff members traveled to Palmer to assess the machine and it was their recommendation that the City look seriously at obtaining the machine. They also stopped at the Silvertip maintenance yazd and discussed the machine with the mechanic that had maintained the machine since it was purchased in 1996. It was his opinion that the machine s611 had several years of service life and was currently in good working condition. It was only put into surplus because ofthe State's vehicle and equipment replacement policy. Staff consulted with the City Manager, called and asked the State to remove the snow blower from the "public" list of State Surplus Items, and entered into nego6a6ons with Jack Fullerton, P.E., Chief of Maintenance and Operations (Central Region). Staff negotiated the price down to $65,000 and also convinced the State to throw in a brand new truck loading chute valued at $30,000. The negotiations included the possibility of receiving the machine for free in exchange for assuming responsibility for the winter maintenance of the 3b Avenue road and sidewalks from Port Avenue to the SeaLife Center on Railway Avenue. Staff did not feel that this would be in the City's best interest. Staff has compiled an informational document that explains in more detail the rationale for the acquisition of this 1996 "used" snow blower. ~1~3 CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: ~~J ~p~ Approved by Finance Department:%~s_~,i. ~ ~Q'2,L;e Council approve Resolution 2008-00 authorizing the City Manager to purchase a 1996 State Surplus Snow Blower, and appropriate funds in the amount of $65,000 for the purchase. ", 1 ~, Ciry of Sewarrd, Alaska Ciry Council Minutes January 14 2008 Volume 37, Page CALL TO ORDER The January 14, 2008 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Clark Corbridge. Lieutenant Tiner led the pledge of allegiance to the flag ROLL CALL There were present: Clark Corbridge presiding and comprising a quorum of the Council; Phillip Oates, City Mai Jean Lewis, City Clerk SCHEDULED to "~ council's opinion on the Seward Ship Drydock Director in Seattle would address the council to clear up any on describing Resolution 2007-124 was inaccurate utside the city limits and inside and they paid the same charges and ing money from the electric fund to the general fund, she thought supporting the electric fund. Carol Griswol~;"spoke in opposition about the operation at Seward Ship's Drydock. With people having cancer and ravens with disfigured bills, she felt there was something drastically wrong with the environment. She showed enlarged photographs of sandblasting without containment, chips on the beach, recycled glass pushed into the beach mixed with chemicals and paint chips, and urged the council to order Seward Ships Drydock to enclose their uncontained pollution and have them follow best management practices. Matt Gray, expressed his feelings from reports read about Seward Ship's Drydock. He thought the city needed to catch up with industry best management practices. Other communities 1 ~' 'J OPENING CEREMONY City of Seward, Alaska City Council Minutes January !4 2008 Volume 37, Page had been brought into conformance. The DEC report found several substances and listed it as a contaminated site. Russ Maddox, iterated the DEC report said Seward Ships Drydock was a contaminated site and stated the city could be held liable for the clean up. He thought containment needed to be re- applied to the lease. Maddox stated no water samples were taken, only sediment samples, and TBT had been found off the shipyard complex. He wanted to see a comprehensive assessment done. Mark Luttrell, stressed that one of the wo the bay. Now that this was known, he felt the city be forced into the lease and sandblastin maint~ thought at this point it was an easy fi d occur. He too wanted the city to force i Jeff Mow, spoke Center (MLC). Since t Washington Street, challenged in S and downsized were Rules the Mary L the on Design Redesi Park S had pur resubm the con said alt signed histori an in Se have a sward Ships Drydock and rich Seward was not, but ~{ench said sea otters in our '~ as getting in the marine ~. 1~ complied with the ,.~:-_ ins= m s was bein ased across about it. Protection should council to pay attention to what DEC and EPA of others. cud o sus the rules to allow Mow to speak further. by imous consent. Jeff ated a session would be scheduled to discuss the city's participation in the owell Cen ped that the agreement was 15% of a 37,000 square foot building on ginal design, hought the city's share would still be 15%, only of a smaller building. of the MLC ha not gone beyond the 35% completion level because of pending changes. gn would be needed. Per the National Historic Preservation Act, Mow stated the National ervice had completed a determination of eligibility of all structures on the properties that they chased, and none qualified for National Historic District designation. The Park Service was fitting them individually to the State Historic Preservation Officer for another evaluation and sideration period was expanded. Funding for the construction had not yet occurred. Mow hough an omnibus bill had a two million dollar line item in it, the Administration had not it. Site preparation needs were being explored. Since none of the buildings were on the c register, and if some construction funds were approved, hazardous mitigation would begin i~.!j City ofSeward, Alaska City Council Minutes January 14 2008 volume 37, Page and the Solly's building and the Harbor Dinner Club would be removed. Legends and the Mai residence would remain a bit longer because of their use. APPROVAL OF AGENDA AND CONSENT AGENDA Approval of Agenda and Consent Agenda Motion Passed The following was pulled from the Unfinished Business Resolution 2007-124, Amending The Electr Charges To Customers Outside Of The City Limits Effective January 1, 2008 (Postponed The following was removed from the consent Designated Dorene Lorenz-Lindsey the Friends of the Jesse Lee Home I The clerk read the following approved The November 26, The Seward City Agreement With 1 Harbor, And The by the administration: meeting minutes were of the Port and Commerce Advisory ~w ~ ity Code Section 5.35.045 (Computation -Maximum Cap From $500 To $1,000, Effective January 1, 2009, And was introduced and setfor a pufilic hearing on January 28, 2008. ruing The City Manager To Enter Into A 60-Month Lease Incorporated For Four Replacement Copiers For City Hall, The tment For A Base Amount Not To Exceed $70,040. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Polar Bear Plunge Presentation Fee To Equalize The Seward City representative for Seward on 1' .' Motion (Bardarson/Smith) City of Seward, Alaska City Council Minutes January /4 2008 Volume 37, Page A Presentation was given on the Alaska Employer Support of the Guard and Reserve (ESGR) by State Chair Michael Michalsky and Executive Director Mike Larsen. Patriot Awards were given to the City of Seward and Sgt. Valadez after being nominated by Major Malcolm Brown and Staff Sgt. Eddie Armstrong. Other topics dis individual city councils one to extend an option projects were a vicious dogs. A the law back as eligible f 2008 ~ k: "energy City had a lot to i City Manager Phillip Oates apologized for the long report but he - The 2008 Alas"I~a Regional National Ocean Sciences Bowl (NOSB). This bowl would be held in Seward on February 9, 2008 with the finals being held in Seward on Apri126`h and 27`h at the Alaska Sealife Center. Governor Palin accepted the invitation to attend "Seward Iditarod Days" on February 2, 2008. - City APUIT health insurance. The city's APUIT health insurance went to an 80/20 plan and increased individual and family deductibles to $250 and $500. Out of pocket maximums also increased. - LOnQ Term Care Facility (LTCF). The purchase of the Griswold property for the Long Term Care Facility was completed. Bob Hicks, the new Community Development Director, bly members from sitting on by teleconference was defeated, land dressed, a climate change impact plan and how i an o ce was introduced for the impoundment of -econ d resol passed on' pt status property tax calculations which put it was. ~~ e permanent fund dividend, they would be d , two c i title 29 would be introduced at the January 22, se to coun estio ong said the $200,000 "revenue sharing" that they called ~e" was pro 'oned out to communities. ~ :' t~ City of Seward, Alaska City Council Minutes January 14 2008 Volume 37, Page for was als .- oving font ~ ® ith this phone Te ' ~ a would provi° ''"'~ assessment -~;;~ e VOID technology. City wide million. Went, new maritime safety ^ The ded cargo nd recommended deletion with a possibility to look at later UNFINISHED BUSINESS -None ^ The S evelo t Plan was written. ^ Members w t to the alternative energy conference in Fairbanks. ^ Work sessio held on Lowell Point Hydro Project. Resulted in a split vote and forwarded on. - ^ Late passenger penalty fee increases were researched. ^ Membership troubles. ^ Budget presentations on the general fund, harbor, SMIC and other items. ^ Continued economic forum discussions. ^ Proposed code amendments describing the role and duties of PACAB. would provide primary interface on the construction of the LTCF. The invitation to bid should be out soon with the bid opening and notice of award to occur the first week of March. Completion of the project should occur in late August or early September 2009. Harbor. Four applicants would be interviewed for the harbormaster position. They are Tammy Peterson of Dutch Harbor, Robyn Pan•a, Mike Baker and Kari Anderson, all of Seward. Oates and Deputy Harbormaster Jim Lewis attended the Corps of Engineers first Alaska Regional Ports and Harbors Conference. There was agreement that the State needed to include a vision for ports and harbors in its long range tr , rtation plan. A "shared vision for Comprehensive Study of Alaska's Navigati sportation System" was signed. Fish Ditch. The city was moving forward with re culverts at the fish ditch. With the cheapest fix being a free flowing cha ead e uld be created on both sides with no vehicle access across, but a ped ridge wou ut in. ADF&G may assist in funding this project. ~~ai ``" z system after meeting with TelAlaska's end of replacing cell phones inside the city completion due mid-February 8. ~, .L ,.:'~ Ciry ofSeward, Alaska City Council Minutes January l4 2008 volume 37, Page City Council recessed at 9:05 p.m. City Council resumed at 9:15 p.m. Designate Dorene Lorenz-Lindsey To Serve As The Community Representative For Seward On The Friends Of The Jesse Lee Home Project Meetings. Discuss And Give Guidance Pertaining To Oates explained what he knew m the EPA enforcement agency for this. The cit low the agencies that were conducting enforce t. e~ agreed on yet. Oates stated the ~ ossibly into until the enforce enci chided for injunctive relief to court i did not city would take action efault o e lease. ground and what the clea Dock EP. He stressed the city was not the iendations of the state and federal Mice negotiations had not been at would be premature to enter and negotiations. ADEC would file ;ly comply. It would be at that time that the had not agreed yet, on what existed on the Amberg wanted a work session and thought possibly a third party would be helpful. Oates would continue to work on asking DEC and EPA to come to town. Dunham agreed with the city attorney and cautioned inter] ecting into the middle of what was the responsibility of the state and federal agencies involved to enforce. JtLO City of Seward, Alaska Ciry Council Minutes January 14 1008 Volume 37, Page Smith stated as owner of the property he wanted to see the actions and timeline by these agencies given to the city, and thought it only fair for the operator to know the playing field. Noting This Was A Continuing Issue, City Council Agreed To Continue As The City Manager Outlined, And Wished To Be Kept Appraised Of The Situation And Requested A Possible Work Session In The Future. INFORMATIONAL ITEMS AND REPORTS (No action Certified Municipal Clerk Certificate by the International Dollerhide. Providence Seward Medical Center Financial Commendation letter from Senator Gary Ste Library Museum Steering Committee on the COUNCIL COMMENTS Amberg thanked the street Johanna Dollerhide on her CMC c Dunham had always produ with signing on problems he had Clerks for Johanna Paul Seato the Seward snow. She also congratulated knew year. ~lyn Re e grea 'Bear Plunge Festivities that she oug e were hanges with transportation patterns and agreed shared vi Hew the city manager to monitor serious internal :ith Ch h Electric. Committee and the organizers ofthe 49er ball. for the 49er ball and thanked the city employees for with Dunham that the city not interject into the middle of DEC a serious problem. He disagreed with the attorney and thought the city l fines. He thought it would be appropriate to informally inform SSD to meet the expectations, and do best practice negotiations. French suggested the Coast Guard Marine Safety program as another place to look for best operational practices. He said the EPA report showed statistically significant differences and was above the threshold as pollution. DJ Whitman, wanted all to know the Coast Guard's vessel Sycamore was in Seward for repairs and their vessel Spar would be here in late February. Whitman wanted the community to welcome them to town. 111 City of Seward, Alaska Ciry Council Minutes January !4 2008 Volume 37, Page Matt Gray expressed empathy with the complicated SSD problem and understood how hard it was dealing with regulatory agencies. He thought it was good that the contaminants were now on the table and being discussed, and commended the council for catching up and doing things right. Gray also appreciated the collaboration on getting the old car removed from the wetlands at the head of the bay. COUNCIL AND ADMINISTRATION RESPONSE TO Dunham thanked DJ Whitman for the notification of the the community to give them a big welcome. Valdatta stated there was a citizen who was causi ler their project and was becoming a public nuisance. It t only hazard and he stressed those actions must be put to ADJOURNMENT The meeting was adjourned at 4 p.m. Jean Lewis, CMC City Clerk (City Seal) Clark Corbridge Mayor ' COMMENTS Coast Guard and wanted harbor contractors on nuisance but a safety 2 Shared Vision for a Comprehensive Study of Alaska's Navigation Transportation System Purpose: To promote and facilitate a long term working relationship on collaborative efforts to improve and develop a comprehensive Alaska Navigation Transportation System that supports Alaska stakeholders participating at the State, Tribal, Federal and local levels that will identify the challenges and opportunities to develop Alaska's economy; protect the environment; sustain cultural resources; recognizing the political and geographical issues including international borders with Russia and Canada. Parties: This is an understanding among the participants of the first Alaska Regional Ports and Hazbors Conference held on January 10-11, 2008 in Anchorage Alaska including U.S. Army Corps of Engineers, Denali Commission, Native Alaska Villages, State of Alaska, Canadian Consulate, US Coast Guard, US EPA, USFWS, National Park Service, and numerous Alaska Municipalities and stakeholders collectively known as the Parties. Goals: We have established the following goals for our partnership: • To express mutual commitment to comprehensive regional planning by working together to encourage and facilitate the creation of an informal "Alaska Navigation Transportation System Support Team." • To learn and develop effective ways to work collaboratively asFederal, State, Native Alaskan Tribes and local organizations in support of State and local efforts to solve problems and maximize opportunities related to Alaska's Navigation Transportation System needs. • To develop a mutual understanding of Alaska's future navigation and transportation problems and opportunities and values to focus on the development of mutually agreeable solutions and approaches for Alaska's future. • To work together to collaboratively support the economic development of the State of Alaska and the Nation, to address the challenges and opportunities of climate change; to promote safe passage and to facilitate "Ports of Refuge"; to protect the nation and future homeland defense; and to fulfill the needs and goals of Native Alaska Villages. Implementation: We do herby declare our intent to work together in support of a comprehensive Alaska Regional Navigation Transportation System Study. We agree in principle that solutions to the complex water resources problems, issues and opportunities facing Alaska require the collaboration of local, State, Tribal, Federal and other stakeholders. 13 To insure effective implementation of this agreement, we commit to fostering a spirit of teamwork and cooperation between our organizations at all levels. We pledge to work together as a "Collaborate Regional Study Team" and meet ;n partnering session as needed. We also commit to developing a subsequent collaborative action plan with specific initiatives and measurable milestones to be reviewed on an annual basis. It is understood that this agreement supports the parties cooperating for a comprehensive analysis examining multi jurisdictional use and management of water resources on a regional scale. This is not a funding obligating or fiscal document. Any exchange of funds or other tangible recourse in furthering the purposes of the partnering agreement will require execution of a separate written agreement in accordance with applicable law. Nothing in this ageement will be construed as affecting the authorities of the participants to act as provided by statute or regulations or as binding beyond their respective authorities or to require the participants to obligate or expend funds in excess of available appropriations. Effective Date: This agreement may be reviewed periodically to renew the Parties commitment and to consider changes that might be needed. Amendments will be made in the spirit of cooperation and partnership by agreement of the signatories. It will remain effective until the Parties agree to terminate it by consensus. Print Organization: ,~~ City of Seward, Alaska Monthly Budget Report For the Month ended December, 2007 Please find attached, the Preliminary revenue and expenditure (expense) data for the City's General Fund and the Harbor, SMIC, Electric, Water, and Wastewater Enterprise Funds. The information contained in these reports does not reflect year-end adjustments necessary to account for transactions in the appropriate accounting period. For example, it may not yet reflect bills paid in January but which aze appropriately classified as December transactions, such as utility and heating bills, communications bills, contracted services, etc. The first pay period in January includes salaries and benefits which aze attributed to December, and those transactions have yet to be accrued back into December, and are therefore understated. Therefore, expenditure data is likely understated in the 2007 total expenditure column. In addition, the report may include revenues which are more appropriately classified as 2008 transactions, but which have not yet been moved to the proper accounting period. For example, harbor moorage fees may be received in December, but are paid in advance for 2008, and must therefore be classified as deferred revenue (a liability account) rather than as a revenue. These adjustments have not yet been made. Interest revenues are reflected in the General Fund until such time as they are allocated to the various Enterprise Funds based on each fund's pro-rata month-end cash balances, so interest revenues in the General Fund are currently over-stated. Revenues appearing in the General Fund with the title "Passenger Transit Fees" reflect the State's cruise ship tax collected prior to July, 2007, and remitted to the City of Seward. Amore up-to-date financial report will be presented to the City Council upon completion of the close-out of the City's financial records. The City's annual financial audit is currently scheduled to take place from March 24 through April 4, 2008. The independent accounting firm of Mikunda, Cottrell, and Co. will be onsite during this time to perform their audit field work. Upon completion of field work, the staff has an additional 30 days in which to complete the final annual financial report, which will be presented to the City Council at a regular meeting within 30 days after completion of the audit. This year's audit is expected to entail significantly more work associated with documenting, reviewing, monitoring, and reporting on the City's internal control framework, and this is expected to be an area of focus in discussions with the City Council upon completion of the audit. If you have questions or require additional information, please feel free to contact Kristin Erchinger, Finance Director, at (907)224-4064, or by e-mail at kerchin~cr(c~cityofseward.net. r 1 ~.tJ City of Seward FUND: 101 - General Fund Line Item Revenue Summary by Fund Through December, 100% of year has expired PRELIMINARY - THROUGH DECEMBER ANNUAL Actual YTD Budget Annual % of Account Name 2006 200] Variance Budget Variance Budget Annual Bud General Property $ 847,075 $ 861,434 $ 13,559 $ 834,200 $ 27,234 $ 834,200 103 .26 % Sales Tax Revenue 3,518,935 4,012,319 493,884 3,725,130 287,189 3,725,130 107 .71 Other Taxes 310,570 147,260 (163,291) 321,000 (173,720) 321,000 45 .68 Assessment Revenu 373 1,026 654 372 654 372 2]5 .92 Penalties and int 1,479 1,263 (216) 2,900 (1,137) 2,400 52 .62 Licenses & Permit 199,643 143,678 (55,964) 198,950 (55,272) 198,950 72 .22 P.I.L.T. 77,719 74,613 (3,101) 80,000 (5,387) 80, ODO 93 .27 Intrgvrmm~tl Reve 91],307 1,064,511 147,209 850,611 213,900 850,611 125 .15 GF Grant Revenue 18,333 1],042 (1,291) - 17,092 - - General Governmen 1,392,630 1,679,899 287,219 1,675,085 4,764 1,675,085 100 .28 Public Safety 42,777 18,434 (29,393) 13,300 5,134 13,300 138 .60 Public works 41,636 39,470 (2,166) 25,000 14,970 25,000 157 .88 Recreation 519,963 599,99] 80,035 557,750 42,24] 557,750 107 .57 Library 8,677 7,]69 (BBB) 8,000 (211) 8,000 97 .36 Fines 16,073 17,611 1,538 21,000 (3,389) 21,000 83 .66 GF Interest Reven 362,649 613,420 250,771 160,000 453,420 160,000 383 .39 Rents and Royalti 119,870 99,729 (20,191) 102,036 (2,307) 102,036 97 .74 Sales Fixed Asset 20,723 1,148 (19,579) 5,000 (3,852) 5,000 22 .97 Unrealized Loss F 29,729 - (29,729) - - - - Spec Proj Revenue 130,952 25,651 (109,802) 400,000 (379,399) 400,000 6 .41 Other Misc Revenu 107,841 71,168 (36,673) 92,550 (21,382) 92,550 76 .90 Pas6ngr transit f - 16,223 16,223 - 16,223 - - Misc. Operating R 22] 1,183 956 2,500 (1,317) 2,500 47 .31 Total Revenue $ 6,684,975 $ 9,514,837 $ 829,862 $ 9,074,884 $ 439,953 $ 9,074,884 109 .85 % ~i6 City of Seward FUND: 101 - General Fund Line Item Expenditure Summary by Fund Through December, 100& of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Budget Annual ~ of Account Name 2006 200] Variance Budget Variance Budget Annual Bud Salaries $ 3,003,505 $ 3,020,5]] $ 1],0]2 $ 3,294,355 $ (2]3,]]8) $ 3,294,355 91 .69 & Overtime 157,386 146, 5]B (10,80]) 116,654 29,929 116,654 125 .65 Standby Time 6,028 5,593 (436) 6,933 (1,340) 6,933 80 .6] Unemployment Wage 15,582 11,998 (3,585) 25,200 (13,202) 25,200 4] .61 Leave Time 305,256 303,00] (2,249) 326,562 (23,555) 326,562 92 .79 Sn Lieu of FICA 9,2]7 8,434 (843) 8, 789 (355) 8,]89 95 .96 Retirement Benefi 2,320,878 ]80,293 (1,540,585) 95],023 (1]6,730) 957,023 81 .53 Health Insurance ]14,475 871,419 156,940 776,050 95,364 ]]6,050 112 .29 Workers' Comp 100,235 103,352 3,11] 118,191 (14,839) 118,191 87 .45 Medicare 65,598 66,559 961 66,909 (358) 66,909 99 .48 Total Persnl Serv 6,698,220 5,317,805 (1,380,414) 5,696,666 (378,861) 5,696,666 93 .35 Audit 43,300 45,350 2,050 48,000 (2,650) 48,000 94 .48 Advertising 31,349 27,959 (3,391) 40,640 (12,681) 40,640 68 .80 Subscriptions/Due 16,352 15,558 (793) 27,880 (12,322) 27,880 55 .80 Travel/Subsistent 10],]49 88,715 (19,034) 106,355 (17,640) 106,355 83 .41 Communications 72,621 77,693 5,072 68,790 8,903 68,]90 112 .94 Education/Trainin 29,083 23,503 (5,580) 48,7]0 (25,26]) 48,770 48 .19 Legal 241,727 170,596 (71,132) 160,000 10,596 160,000 106 .62 Other Spec Servic 7,435 9,300 1,864 11,000 (1,700) 11,000 84 .54 Utilities 291,493 306, 0]B 19,635 315,500 (9,422) 315,500 97 .01 Heating Fuel 52,348 58,422 6,0]9 95,800 12,622 45,800 127 .56 Rents & Leases 52,534 53,421 887 54,800 (1,379) 54,800 97 .48 Insurance 182,431 252,575 70,145 202,500 50,075 202,500 124 .73 Maintenance & Rep 198,440 186,531 (11,910) 216,912 (30,381) 216,912 85 .99 Contracted Servic 208,951 218,952 10,001 260,680 (41,728) 260,680 83 .99 Library Bks.& Mat 22,072 24,984 2,912 23,500 1,484 23,500 106 .31 Vehicle Supplies 6,680 6,039 (641) 4,800 1,239 4,800 125 .81 Uniform Allowance 6,644 9,65] (1,988) 7,801 (3,194) 7,801 59 .69 Operating Supplie 235,566 221,328 (19,238) 249,338 (28,010) 249,338 88 .77 Gas & Lube 75,583 ]6,952 1,3]0 62,100 14,852 62,100 123 .92 Equip, FUrn, TOOls 59,551 62,345 7,793 84,820 (22,975) 84,820 ]3 .50 Safety Equip/SUpp 13,312 10,741 (2,570) 22,185 (11,444) 22,185 48 .42 Janitorial Suppli 6,370 7,391 1,021 8,350 (959) 8,350 88 .51 Inmate Meals 13,542 14,979 1,437 15,000 (21) 15,000 99 .86 Postage/Misc.Frei 32,188 38,348 6,160 41,700 (3,352) 41,700 91 .96 Equipment Rental 63,983 ]9,346 10,363 85,600 (11,254) 85,600 86 .85 Motor Pool RenC 368,775 360,367 (8,408) 360,367 - 360,36] 100 .00 Campgrounds 3,658 2,964 (694) 4,200 (1,236) 4,200 ]0 .58 Sister City Progr 3,066 3,300 234 3,500 (200) 3,500 94 .28 Municipal Lobby F 128,916 129,174 258 140,000 (10,826) 140,000 92 .27 Contributions 135,600 166,000 30,400 156,000 10,000 156,000 106 .41 Had Debt Expense 1,347 - (1,347) - - - - Genl Govt Admin F 63,801 ]4,434 10,633 74,434 - 79,434 100 .00 I Y City of Seward FUND: 101 - General Fund Line Item Expenditure Summary by Fund Through December, 100% of year has expired PRELIM THROUGH DECEMBER Actual YTD Budget Account Name 2006 2007 Variance Budget Variance Contingency $ 28,869 $ 14,321 $ (14,548) $ 28,232 $ (13,911) $ Elections 2,559 1,244 (1,315) 3,500 (2,257) Promotion 3,736 3,'/49 13 5,100 (1,351) Vol Fireman Stipe 16,000 17,000 1,000 17,000 - Credit card fees 6,968 5,489 (1,479) 5,300 189 Misc. Expenses 20,239 49,476 29,241 24,550 29,926 Principal 293,297 975,654 232,357 362,816 112,838 Interest Expense 23,052 61,620 38,569 39,753 21,867 Buildings 18,582 8,116 (10,466) 3,500 4,616 Capital Equipment 53,022 58,962 5,990 29,000 29,962 Miac. Programs 5,565 5,380 (1B5) 6,500 (1,120) Pass -Thru Payment 165,150 - (165,150) - - Total Expenses $ 10,056,670 $ 8,831,819 $(1,224,851) $ 9,173,239 $ (341,420) $ ANNUAL Annual & of Budget Annu al eud __________ 28,232 ____ 50 ___ .72 % 3,500 35 .53 5,100 73 .52 1"],000 100 .00 5,300 103 .57 24,550 201 .53 362,816 131 .10 39,753 155 .01 3,500 231 .88 29,000 203 .32 6,500 82 .78 9,173,239 96.28 % ii$ City of Seward FUND: 901 - Small Boat Harbor Enterprise Fund Line Item Revenue Summary by Fund Through December, 1005 of year has expired Account Name EF Interest Reven Sales Fixed Asset Unrealized LOSS F Spec Proj Revenue Other Misc Revenu Amortization of C Transient Moorage Moorage Boat Lift Fees Wharfage Land Rents & Leds Labor and Service Land Lease Credit Misc. Harbor Reve Harbor Power Sale Total Revenue PRELIMINARY - THROUGH DECEMBER Actual YTD Budget 2006 2007 Variance ________ Budget Variance __________ $ 163,194 __________ $ 53,235 $ _ (109,959) $ 32,000 $ 21,235 1,810 - (1,810) - - 12,362 - (12,3627 - - 28,036 - (28,036) - - 569 (668) (1,238) 1,600 (2,268 510,931 510,932 1 510,932 - 421,606 389,078 (32,528) 335,000 54,078 771,207 1,641,254 870,048 878,400 762,854 75,541 89,650 14,109 85,000 4,650 37,716 67,714 29,998 20,000 47,714 339,293 31"],547 (21,745) 336,435 (18,888 3,938 5,577 1,639 4,000 1,577 (51,533) (27,723) 23,810 (51,533) 23,810 72,212 80,922 8,710 85,900. (4,978 201,170 201,186 16 215,000 (13,814 $ 2,588,051 $ 3,328,705 $ 740,654 $ 2,452,734 $ 875,971 ANN[IAL Annual & of Budget Annual Bud $ 32,000 166.36 ~ 1,600 510,932 335,000 878,400 85,000 20,000 336,435 4,000 (51,533) B 5, 900 215,000 (41.78) 100.00 116.19 186.85 105.47 338.57 94.39 139.42 (53.80) 94.20 93.57 $ 2,452,734 135.71 & '~9 City of Seward FUND: 401 - Bma11 Hoat Harbor Enterprise Fund Line Item Expenditure Summary by Fund Through December, 100b of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Budget Annual & of Account Name 2006 2007 Variance Budget Variance Budget Annu al Bud Balarie6 $ 352,869 $ 389,040 $ 31,171 $ 434,792 $ (50,']52) $ 934,792 88 .33 & Overtime 24,501 26,087 1,586 29,397 (3,260) 29,347 88 .89 Standby Time 11,116 11,403 287 10,316 1,087 10,316 110 .53 Unemployment wage - 718 718 - 718 - - Leave Time 46,261 43,849 (2,411) 46,554 (2,705) 46,554 94 .19 In Lieu Of FICA 4,023 3,496 (527) 3,950 (454) 3,950 88 .51 Retirement Benefi 108,094 120,220 12,126 158,606 (38,386) 158,606 75 .80 Health Insurance 98,444 118,881 20,437 112,948 6,433 112,448 105 .72 Workers' Comp 28,334 28,018 (316) 28,960 (942) 28,960 96 .75 Medicare 4,882 5,566 684 6,041 (476) 6,041 92 .13 Total Persnl Se rv 678,523 792,278 63,754 831,014 (88,736) 831,014 89 .32 Advertising 5,765 9,639 3,874 5,500 4,139 5,500 175 .26 Subscriptions/Due 1,091 1,397 256 1,500 (153) 1,500 89 .78 Travel/Subsistent 6,106 4,730 (1,376) 6,500 (1,770) 6,500 72 .77 Communications 11,352 12,408 1,057 13,000 (592) 13,000 95 .95 Education/Txainin 788 4,450 3,662 4,000 450 4,000 111 .25 Legal 25,946 10,280 (15,666) 20,000 (9,720) 20,000 51 .40 Other Spec Servic 794 - (794) - - - - Utilities 36,435 46,551 10,117 73,500 (26,949) 73,500 63 .34 Power for Resale 149,493 153,327 3,834 100,000 53,327 100,000 153 .33 Heating Fuel 7,683 7,097 (636) 7,000 47 7,000 100 .66 Insurance 79,971 77,506 (2,464) 97,700 (20,194) 97,700 79 .33 Maintenance & Rep 36,876 25,104 (11,773) 31,700 (6,596) 31,700 79 .19 Contracted Servic 94,516 47,368 2,852 70,400 (23,032) 70,400 67 .28 Operating Supp lie 19,277 21,664 2,388 31,450 (9,786) 31,450 68 .69 Gas fi Lube 16,333 17,507 1,174 15,000 2,507 15,000 116 .71 Equ ip, FUrn, TOO1s 10,872 16,483 5,611 29,500 (8,017) 24,500 67 .28 Safety Equip/Bupp 3,635 5,359 1,719 5,250 104 5,250 101 .98 .Tanitorial Supp li 5,725 6,086 3fi0 6,800 (714) 6,800 89 .49 Postage/Misc.Frei 5,001 6,751 1,750 11,600 (4,849) 11,600 58 .19 Equipment Rental 270 - (270) 2,000 (2,000) 2,000 - Motor Pool Rent 51,043 36,043 (15,000) 36,043 - 36,043 100 .00 Bonding Expense - 8,717 8,717 - 8,717 - - Depreciation Expe 973,971 984,883 10,912 1,001,879 (16,996) 1,001,879 98 .30 Bad Debt Expense 21,489 - (21,484) 19,200 (19,200) 19,200 - Harbor Overhead 914,331 1,028,628 114,297 1,089,837 (61,209) 1,089,837 94 .38 Harbor Allocation (764,863) (886,781) (121,918) (886,781) - (886,781) (100 .00) P.I.L.T. 128,895 138,747 9,853 128,189 10,563 128,184 108 .24 Reclass PILT to T (128,895) (138,747) (9,853) (128,189) (10,563) (128,184) (108 .24) Credit card fees 19,057 15,326 (3,731) 13,500 1,826 13,500 113 .53 Interest Expense - - - 500 (500) 500 - Misc. Expenses 1,968 2,105 637 2,000 105 2,000 105 .26 Principal - 344,214 344,214 322,107 22,107 322,107 106 .86 ~~~ City of Seward FUND: 401 - Small Ho at Harbor Enterprise Fund Line Item Expenditure Summary by Fund Through December, 100& of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Hudget Annual 8 of Account Name 2006 2007 Variance Budget Variance Budget Annual Bud Interest Expense $ 321,975 $ 332,970 $ 10,995 $ 411,722 $ (78,752) $ 911,722 80.87 & Capital Equipment - 5,906 5,986 - 5,986 - - Total Expenses $ 2,684,916 $ 3,007,971 $ 403,055 $ 3,368,421 $ (280,450) $ 3,368,421 91.67 6 f. G City of Seward FUND: 417 - S.M.I.C. Enterprise Fund Line Item Revenue Summary by Fund Through December, 100& of year has expired Account Name EF Interest Reven $ Unrealized Loss F Amortization of C Moorage Boat Lift Fees Storage Fees Wharfage Land Rents & Leas Labor and Service Harbor Power Sale Total Revenue $ PRELIMINARY - THROUGH DECEMBER Actual YTD Budget 2006 2007 Variance Budget Variance 5,405 $ 27 5 (5,378) $ - $ 27 $ 415 - (415) - - 767,337 523,543 (243,799) 523,543 - 3,493 2,367 (1,126) 5,500 (3,133) 106,115 116,682 10,567 110,000 6,682 94,299 84,720 (9,574) 110,000 (25,280) 2,862 565 (2,298) 6,500 (5,935) 68,372 70,503 2,132 71,180 (677) 413 363 (49) 500 (137) 11,091 15,021 3,930 10,000 5,021 1,059,797 $ 813,791 $ (246,006) 5 837,223 $ (23,432) 5 ANNUAL Annual ~ of Budget Annual Bud - & 523,543 5,500 110,000 110,000 6,500 71,180 500 10,000 100.00 43.03 106.07 77.02 6.69 99.05 72.66 150.21 837,223 97.20 ~ w City of Seward FUND: 419 - S.M.I .C. Enterprise Fund Line Item Expenditure Summary by Fund Through December, 1008 of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Budget Annual & of Account Name 2006 2007 Variance Budget Variance Budget Annu al Bud Salaries $ 44,809 $ 44,61] $ (192) $ 49,946 $ (5,329) $ 49,946 89 .33 & Overtime 2,443 3,888 1,996 3,424 964 3,924 113 .56 Standby Time - 39 39 - 39 - - Leave Time 4,305 4,991 186 4,863 (372) 4,863 92 .35 Retirement Benefi 7,970 5,913 (1,558) 9,812 1,101 4,012 122 .87 Health Insurance 10,198 14,695 4,497 11,908 2,78] 11,908 123 .40 Workers' Comp 4,788 4,707 (81) 5,331 (624) 5,331 88 .29 Medicare 726 729 3 776 (47) 776 93 .93 Total Persnl Serv 79,]40 79,078 4,338 81,060 (1,982) 81,060 9] .56 Communications 17 17 - - 17 - - Lega1 16,419 4,594 (11,825) 10,000 (5,406) 10,000 95 .94 Utilities 10,785 9,515 (1,270) 11,000 (1,485) 11,000 86 .50 Power for Resale 14,090 16,172 2,082 15,000 1,172 15,000 107 .81 Heating Fuel 6,325 7,968 1,693 9,000 (1,032) 9,000 88 .53 Insurance 11,688 15,632 3,994 16,400 (768) 16,900 95 .32 Maintenance & Rep 30,308 36,457 6,199 34,000 2,457 34,000 107 .23 Cont raced Servic 3,802 6,609 2,807 92,500 (35,891) 92,500 15 .55 Operating Supplie 1,101 2,043 942 5,500 (3,457) 5,500 37 .15 Gag & Lube 4,027 9,944 917 3,900 1,044 3,900 126 .78 Eguip, FUrn,TOO1s 65 808 744 2,500 (1,692) 2,500 32 .39 Postage/Misc.Frei 1,998 9,763 2,765 9,500 263 4,500 105 .85 Depreciation Expe 886,429 642,635 (243,795) 642,635 (1) 642,635 100 .00 Harbor Overhead 268,696 252,407 (16,289) 263,379 (10,967) 263,374 95 .84 Harbor Allocation (105,088) (68,030) 3],058 (68,029) (1) (68,029) (100 .00) P.I.L.T. 17,461 16,549 (913) 19,400 (2,851) 19,900 85 .30 Reclass PILT to T (17,461) (16,549) 913 (19,400) 2,851 (19,400) (85 .30) Interest Expense 105 - (105) - - - - Principal - 151,509 151,509 151,509 - 151,509 100 .00 Interest Expense 12,936 8,919 (3,516) 9,712 (793) 9,712 91 .89 AmO r[DefLO5593BOn 38,425 38,425 - 38,425 - 38,425 100 .00 Amo rC.HOndISSUeCO 2,410 2,410 - 2,410 - 2,410 100 .00 Total Expenses $ 1,278,]78 $ 1,216,8]6 $ (61,902) $ 1,275,396 $ (58,520) $ 1,275,396 95 .41 & 1 ~~ City of Seward FUND: 501 - Electric Fund Line Item Revenue Summary by Fund Through December, 100& of year has expired Account Name Assessment Revenu EF Int eresC Aeven Sales Fixed Asset Unrealized Loss F Spec Proj Revenue Amortization of C Amort.BOnd Premiu Residential Sales SG Service LG Service Sales Industrial Sales Harbor Power Sale Street & Yard Lig Misc. Operating R Total Revenue PRELIMINARY - THROUGH DECEMBER Actual YTD Budget 2006 2007 Variance Budget Variance $ 2,463 $ 2,165 $ (298) $ 8,075 $ (5,910) $ 234,995 123,011 (111,989) 111,000 12,011 621 - (621) - - 16,004 - (16,004) - - 1,263,698 21,220 (1,292,478) - 21,220 798,817 809,953 11,136 809,953 - 7,227 7,227 - - 7,227 2,514,908 2,562,743 97,835 2,593,822 (31,079) 1,346,459 1,364,789 18,330 1,949,101 (79,312) 3,059,243 3,388,377 329,135 3,349,591 43,786 689,902 642,252 (97,650) 661,446 (19,199) 180,819 159,679 (21,135) 159,000 679 72,777 63,124 (9,654) 74,000 (10,876) 117,662 235,024 117,362 85,500 149,529 $ 10,305,591 $ 9,379,569 $ (926,027) $ 9,291,488 $ 88,076 $ ANNUAL Annual ~ of Budget Annual Bud 8,0"]5 26.81 & 111,000 110.82 809,953 loo.oB 2,593,822 1,494,101 3,394,591 661,446 159,000 74,000 85,500 9,291,488 98.80 94.51 101.31 97.10 100.43 85.30 279.88 100.95 ~ (l Y :. City of Seward FUND: 501 - Electric Fund Line Item Expenditure Summary by Fund Through December, 100& of year has expired Account Name Salaries $ Overtime Standby Time Electric Meal A11 Unemployment Wage Leave Time Retirement Benefi Health Insurance Workers' Comp Medicare Union Benefits Sa1.& Ben.w/o cre Total Persnl Serv Advertising Subscriptions/Due Travel/SUbsistenc Communications Education/Trainin Legal Other Spec Servic Utilities POWEr fOY RE6dle Heating Fuel Fuel for Generato Rents & LEa6es Insurance Maintenance & Rep Contracted Servic Vehicle Supplies Operating Supplie Oper.Eupp.w/o cre Gas & Lube Testing Equip, FUrn, TOOls Safety Equip/SUpp Postage/Misc.Frei Equipment Rental Motor Pool Rent Uti1. Deposit Int Depreciation Expe Bad Debt Expense Gent Govt Admin F P.I.L.T. PRELIM THROUGH DECEMBER Actual YTD Budg eL 2006 2007 Variance Budget Variance 529,238 $ 519,141 $ (10,097) $ 724,741 $ (205,600) $ 175,277 130,067 (45,210) 46,588 83,479 72,930 74,228 1,298 110,377 (3fi, 149) 13,618 3,545 (10,073) 5,999 (2,454) 3,002 4,414 1,411 5,000 (586) 44,785 37,465 (7,320) 64,813 (27,398) 163,526 117,808 (45,718) 128,410 (10,602) 116,710 112,991 (3,719) 120,769 (7,778) 44,784 93,080 (1,709) 60,982 (17,902) 29,608 21,656 (7,952) 14,103 7,553 23,566 17,859 (5,707) 20,000 (2,141) (176,929) (250,927) (73,998) (100,000) (150,927) 1,040,116 831,328 (200,788) 1,201,782 (370,954) 695 25,251 116,490 8,311 11,589 179,929 10,000 47,812 3,990,729 2,623 745,138 34,965 59,541 973,917 59,125 6,163 387,763 (217,821) 62, 127 15,194 950 22,402 3,996 75,588 1,289 1,303,680 13,859 644,359 736,151 1,195 25,999 69,772 11,028 11,975 134,790 10,000 54,352 4,403,750 3,662 32,995 33,165 72,436 99,269 90,997 370 966,008 (210,432) 37,344 14,165 911 16,208 127 75,588 1, 314 1,342,779 671,422 619,611 449 743 (96,718) 2,717 (109) (45,139) 6,540 413,026 1,039 (712,143) (1,799) 12,895 (374,647) 31,872 (5, 793) 78,246 7,389 (24,783) (1,029) (39) (6,194) (3,869) 25 39,099 (13,859) 27,063 (116,590) 5,000 27,250 73,000 10,150 19,500 98,500 10,000 51,000 3,659,590 4,500 lao, oao 56,000 66,950 153,000 139,300 1,500 204,300 (lzs, aoo) 23,500 5,000 17,750 19,650 e, ooo 75,588 1,000 1,302,160 38,000 671,422 668.997 (3,855) (1,256) (3,228) 878 (8,025) 36,290 3,352 749,160 (838) (67,005) (22,835) 5,486 (53,731) (98,303) (1,130) 261,708 (85,432) 13,894 (5,000) (3, 585) 911 (3,442) (7,873) 314 40,619 (38,000) (49,386) ANNUAL Annual & of Budget Annu al Bud 724,741 71 .63 & 96,588 279 .19 110,377 67 .25 5,999 59 .10 s,ooo ee .27 64,813 57 .80 128,910 91 .74 120,769 93 .56 60,982 70 .64 14,103 153 .55 20,000 89 .30 (100,000) (250 .93) 1,201,782 69 .17 5,000 22 .89 27,250 95 .39 73,000 95 .58 10,150 108 .65 19,500 58. 85 98,500 136. 89 10,000 100. 00 51,000 106. 57 3,654,590 120. 50 4,500 81. 38 100,000 32. 99 56,000 59. 22 66,950 108. 19 153,000 64. 88 139,300 65. 32 1,500 24. 63 204,300 228. 10 (125,000) (168. 35) 23,500 158. 91 5,000 17.760 79. 80 19,650 82 .48 8,000 1 .59 75,588 100 .00 1,000 131 .44 1,302,160 103 .12 38,000 671,422 100 .00 668,997 92 .62 -- r tL~ City of Seward FUND: 501 - Electric Fund Line Item Expenditure Summary by Fund Through December, 100& of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Budget Annual & of Account Name 2006 2007 Variance Budget Variance Budget Annual Bud Reclass PILT to T $ (736,151) $ (619,611) $ 116,590 $ (668,997) $ 49,386 $ (668,997) (92. 62)& Credit card fees 40,155 25,857 (14,298) 42,000 (16,193) 42,000 61. 57 Misc. Expenses 4,367 257 (4,111) 8,500 (8,293) 8,500 3. 02 Principal - 195,000 195,000 345,361 (150,361) 345,361 56. 96 Interest Expense ]6,557 73,908 (2,649) 4]2,]40 (398,832) 472,740 15. 63 Amo rt .BOndIasueCO 4,904 4,904 - - 9,904 - - Capital Equipment - 17,150 17,150 45,000 (27,850) 45,000 38. 11 Total Expenses $ 9,251,752 $ 8,619,039 $ (632,713) $ 8,826,993 $ (207,959) $ 8,826,993 9]. 64 & S %. '~ City of Seward FUND: 701 - Water Enterprise Fund Line Item Revenue Summary by Fund Through December, 1004 of year has expired AcCOUnt Name EF Interest Reven Sales Fixed Asset Unrealized Loss F Spec Proj Revenue Amortization of C Residential Sales SG Service LG Service Sales SMIC Sales Industrial Sales Ship Water Misc. Operating R Total Revenue PRELIMINARY - THROUGH DECEMBER Actual YTD Budget 2006 2007 Variance Hudget Variance $ 102,318 $ 59,779 $ (47,539) $ 61,500 $ (6,721) $ 350 - (350) - - 7,731 - (7,731) - - 6,209 - (6,209) - - ll,286 22,612 5,326 22,612 - 365,240 363,780 (1,460) 371,990 (8,160) 99,345 97,527 (1,819) 93,700 3,627 166,929 189,101 2,172 179,000 10,101 56,810 78,383 21,574 53,000 25,383 152,393 126,297 (26,097) 148,000 (21,703) 62,608 80,598 17,940 68,000 12,546 61,082 60,997 (84) 59,700 1,297 $ 1,118,300 $ 1,079,023 $ (49,277) $ 1,057,452 $ 16,571 $ ANNUAL _____________________ Annual 8 of Budget Annual Bud __________ _______ 61,500 89.07 & 22,612 371,940 93,700 179,000 s3, OOo 148,000 68,000 59,700 100.00 97.81 109.08 105.64 197.89 85.34 118.45 102.17 1,057,452 101.57 ~ ~ i.. City of Seward FUND: 701 - Water Enterprise Fund Line Item Expenditure Summary by Fund Through December, 100°a of year has expired Account Name Salaries Overtime Standby Time Leave Time In Lieu of FICA Retirement Benefi Health Insurance Workers' Comp Medicare Total Persnl Serv Advertising Subscriptions/Due Travel/Subs istenc Communications Education/Trainin Legal Utilities Heating Fuel Insurance Maintenance & Rep Con traced Servic Vehicle Supplies operating Supp lie Gas & Lube Testing Equip, FUrn, TOOls S of e[y Equip/Supp Postage/Misc.Frei Equipment Rental Motor Pool Rent Depreciation Expe Bad Debt Expense Genl Govt Admin F P.I.L.T. Reclass PILT to T Credit card fees Misc. Expenses Principal Interest Expense Infrastructure Co Capital Equipment Total Expenses PRELIM THROUGH DECEMBER Actual YTD Budget 2006 2007 Variance Budget Variance $ 150,850 $ 130,923 $ (19,927) $ 145,118 $ (14,195) $ 22,602 16,609 (5,994) 3,700 12,909 5,914 6,465 551 8,928 (2,463) 18,809 15,278 (3,531) 17,196 (1,918) 494 - (499) 2,969 (2,469) 38,966 40,823 1,857 99,733 (8,910) 36,805 39,195 (2,609) 33,660 535 10,849 7,375 (3,474) 11,265 (3,890) 2,495 2,099 (397) 1,262 837 287,784 253,767 (34,017) 273,331 (19,564) 813 642 849 4,257 3,563 5,606 6,710 2,445 1,251 154,522 145,313 8,826 15,483 10,983 5 23,215 9,531 6,138 5,650 308 4,640 3,821 94,192 480 176,992 79,249 (79,249) 4,670 813 11,309 59,620 316 11,434 4,965 7,190 5,075 807 4,445 3,262 3,821 98,546 184,426 74,672 (74,672) 2,892 407 813 207 (694) 1,103 (1,194) (9,208) 2,483 39,137 (10,667) (5) (11,781) 433 1,053 (575) 499 (195) 3,262 1,000 2,000 4,000 5,000 4,500 5,000 150,000 1,000 10,000 55,000 150,000 (187) (1,151) (437) 1,710 (3,299) (5,000) (9,687) (1,000) 1,309 (380) (149,684) (7,566) (1,135) 3, 190 (2,925) (1,693) (555) 2,262 (84,1837 (3,000) (3,195) 3,195 (1087 (1,093) (129,889) (94,020) (325,000) 26,133 4,353 (480) 7,434 (9,577) 9,577 (1,778) (407) 19,000 6,100 4,000 8,000 2,500 5,000 1,000 3,821 182,729 3,000 189,926 77,867 (77,867) 3,000 1,500 129,889 99,020 325.000 - 26,133 26,133 - $ 816,004 $ 831,914 $ 15,910 $ 1,633,016 $ (801,902) $ ANNUAL Annual k of Budget ___ Annu al Bud _ ______ 145,118 ____ 90 ___ .22 ~ 3,700 448 .88 8,928 72 .41 17,196 88 .85 2,469 - 49,733 82 .09 33,660 101 .59 11,265 65 .47 1,262 166 .29 273,331 92 .84 1, 000 Bl .ze 2,000 92 .45 4,000 89 .09 5,000 134 .19 4,500 27 .80 5,000 - 150,000 96 .88 1,000 10,000 113 .09 55,000 99. 31 150,000 0. 21 19,000 60 .18 6,100 81 .39 4,000 179 .76 8,000 63 .44 2,500 32 .28 5,000 88. 90 1,000 326. 23 3,821 100. 00 182,729 53. 93 3,000 - 184,926 100. 00 77,867 95. 90 (77,867) (95. 90) 3,000 96. 39 1,500 27. 11 129,889 94,020 - 325,000 1,633,816 50.92 ~ ~i.. V City of Seward FUND: 703 - Wastewater Enterprise Fund Line Item Revenue Summary by Fund Through December, 100& of year has expired PRELIMINARY - THROUGH DECEMBER ANNUAL Actudl YTD Budget Annual ~ of Account Name 2006 2007 Variance Budget Variance Budget Annu al Bud Assessment Revenu $ 423 $ 333 $ (90) $ 923 $ (90) $ 423 98 .99 5 EF Interest Reven 26,685 10,644 (16,041) 6,900 1,744 8,900 119 .60 Unrealized Loss F 1,667 - (1,867) - - - - Spec Proj Revenue 6,106 - (6,106) - - - - Amortization of C 214,878 214,878 - 214,878 - 214,878 100 .00 Residential Sales 429,636 428,134 (1,503) 428,000 134 426,000 100 .03 SG Service 112,041 103,266 (6,775) 98,000 5,266 96,000 105 .37 LG Service Sales 189,114 189,321 208 183,000 6,321 163,000 103 .95 SMIC Sales 56,600 55,351 (3,450) 60,000 (4,649) 60,000 92 .25 Misc. Operating R 21,532 5,622 (15,909) 2,500 3,122 2,500 224 .90 Total Revenue $ 1,061,081 $ 1,007,549 $ (53,532) $ 995,701 $ 11,898 $ 995,701 101 .19 & ~ J City of Seward FUND: ]03 - Wastewater Enterprise Fund Line Item Expenditure Summary by Fund Through December, 1005 of year has expired PRELIM THROUGH DECEMBER ANNUAL Actual YTD Budge[ Annual $ of Account Name 2006 200] Variance Budget Variance Budge[ Annu al Bud Salaries $ 63,600 $ 89,976 $ 26,3]6 $ 102,253 $ (12,2]]) $ 102,253 8] .99 8 Overtime 2,248 3,857 1,609 2,584 1,2]3 2,589 199 .28 Standby Time 5,879 6,034 154 5,292 742 5,292 114 .02 Leave Time 5,]52 10,685 4,933 12,002 (1,31]) 12,002 89 .03 In Lieu of FICA 494 - (499) 494 (499) 494 - Retirement Benefi 21,232 2],811 6,579 34,35] (6,596) 34,357 80 .95 Health InSUran ce 19,493 23,35] 8,864 22,440 917 22,940 104 .09 Workers' Comp 2,523 3,873 1,350 10,963 (],090) 10,963 35 .33 Medicare 853 1,303 450 1,368 (65) 1,368 95 .25 Total Persnl Eerv 11],075 166,896 49,821 191,753 (24,857) 191,]53 87 .04 Advertising - - - 500 (500) 500 - Subscriptions/Due 1,65] 70 (1,58]) 1,200 (1,130) 1,200 5 .85 Travel/Subsistent 929 689 (295) 2,500 (1,816) 2,500 2] .36 Communications 4,169 4,997 828 4,000 997 4,000 129 .94 Education/Trainin 330 990 660 3,000 (2,010) 3,000 33 .00 Legal - - - 5,000 (5,000) 5,000 - Other Spec Servic - 1]6 176 - 1]6 - - Utilities 89,500 06,078 (3,922) 95,000 (8,922) 95,000 90 .61 }3e ating Fuel 1,186 1,823 637 1,500 323 1,500 121 .54 Rents & Leases 183 83 (100) 500 (417) 500 16 .67 Insurance 6,646 7,040 1,193 8,500 (660) 8,500 92 .23 Maintenance & Rep 29,789 27,525 (2,259) ]9,500 (51,975) 79,500 34 .62 Contracted Servic 1,117 9,958 8,841 28,000 (18,042) 28,000 35 .56 Operating Supplie 11,968 8,294 (3,674) 19,000 (10,]06) 19,000 43 .65 Gas & Lube 5,668 4,912 (756) 5,750 (838) 5,]50 85 .43 Testing 9,183 10,218 1,035 1],000 (6,782) 17,000 60 .11 Equip, FUrn,TOOls 2,894 6,579 3,685 6,000 579 6,000 109 .65 Safety Equip /SUpp 29 BO] 778 1,000 (193) 1,000 B0 .]0 Postage/Misc.Frei 5,860 3,079 (2,]82) 5,000 (1,921) 5,000 61 .58 Equipment Rent dl - - - 2,000 (2,000) 2,000 - Motor Pool Rent 4,000 4,000 - 4,000 - 4,000 100 .00 Depreciation Expe 279,995 2]9,167 (828) 286,592 (],425) 286,592 9] .41 Had Debt Expense 1,215 - (1,215) 1,000 (1,000) 1,000 - Genl Gov[ Admin F 108,218 112,763 4,545 112,763 - 112,763 100 .00 P.I .L.T. 65,378 5],862 (],516) 62,360 (4,498) 62,360 92 .79 Reclass PILT to T (65,3]8) (57,862) 7,516 (62,360) 4,498 (62,360) (92 .79) Credit card fees 5,396 3,436 (1,960) 3,000 936 3,000 114 .54 Misc. Expenses 1]0 99 (71) 1,000 (901) 1,000 9 .90 Principal - 55,921 55,921 55,924 (3) 55,924 99 .99 Interest Expense 6,819 5,195 (1,624) 6,157 (962) 6,157 84 .3] Loss on Fixed Ass 1,994 - (1,994) - - - - Infrastructure Co - 5,000 5,000 20,000 (15,000) 20, OOO 25 .00 Tot a1 Expenses $ 695,986 $ 806,590 $ 110,603 $ 967,139 $ (160,549) $ 967,139 83 .40 ~ +p i ~~ Meeting Nanci Richey 2 1/24/2008 10:57 AM r+ r l~t February ~~/~~ February 2008 March 2006 r V S M T W T F S 5 M TW T F 5 lz r 3 4 5 6 7 8 9 2 3 4 6 6 7 8 10 11 12 13 14 15 16 9 10 11:12 13 14 15 17 18 19 20.'21 22 23 16 1718.19 20 2L22 24 25 26 2728 29 23 24 25 26 27 28 29' 30 31 Monday Tuesday Wednesday Thursday ,.Fnday ___ _p~.t"~r .> > ~'~ C !r°" ' N iii r ~ r t : qtr .s°: s 1.~;+.i=„},.~~, r- i~r r ~. i:~i~ FebNary.. i __ -__ _ -. 4 -- 6 - -__ 6, _ 7~- - _ ' 730pm P8S Meeting - 12:OOpmPACAB Meeting ' i i -- ~ - _ _ --- I -- 12 _ 13 i ---- -- i.--.- 14 _ ---- 1 .. --- _.. ;OOpm WS on electric ~. 12:OOpm tariff fees & railbelt ~' I responsibilities '' C . 7:30pm'. ity Council ~ I Meeting I. 6:30pm' `12i00pm 9:OOamSocial Security Representative 'I ',, 6:30pmNis[oric '.. '. Preservation Meeting I~ i i '7:30pm City Council ~~ Meeting ' I I Nanci Richey 3 1/24/zoUa lU:S/ am ~7