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HomeMy WebLinkAbout01242011 City Council Packet Seward City Council Agenda Packet eCh 4 1 SK qge ry January 24 2011 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA All-America CitY t ' 1 I r {Please silence all cellular phones and pagers during the meeting} January 24, 2011 7:00 p.m. Council Chambers 1. CALL TO ORDER Willard E. Dunham 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2011 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING. Jean Bardarson [Those who have signed in will be given the first opportunity to Vice Mayor speak. Time is limited to 2 minutes per speaker and 30 minutes total Term Expires 2012 time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA Robert Valdatta [Approval of Consent Agenda passes all routine items indicated by Council Member asterisk ( *). Consent Agenda items are not considered separately Term Expires 2011 unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] Tom Smith Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2011 A. Proclamations and Awards Vanta Shafer 1. Certificate of Memoriam for Oscar Watsjold Pg. 4 Council Member Term Expires 2011 B. City Manager's Report C. City Attorney Report Marianna Keil D. Mayor Report Council Member E. Other Reports and Presentations Term Expires 2012 1. Transmission line repair presentation by Chugach Electric Ristine Casagranda 7. PUBLIC HEARINGS Council Member Term Expires 2012 A. Joint Public Hearing on Ordinance 2010 -009 and Resolution 2010- 130. B. Council Discussion on Ordinance 2010 -009 and Resolution 2010 -130. Phillip Oates City Manager C. Ordinance for Enactment Johanna Kinney 1. Ordinance 2010 -009, Amending Seward City Code Section 5.35.055 To City Clerk Create A Revenue Source For Repayment Of The $3.73m General Obligation Bond For Construction Of The Seward Community Library Cheryl Brooking Museum By Establishing A Variable Seasonal Sales Tax That Increases The City Attorney City Of Seward Rate To 5% During April Through September Of Each Year And Reduces The Rate To 3% In October Through March Of Each Year Pg. 5 City of Seward, Alaska Council Agenda January 24, 2011 Page 1 D. Resolution for Approval 2. Resolution 2010 -130, Establishing A 1 Mill Increase In Property Tax To Generate A Revenue Source For Repayment Of The $3.73m General Obligation Bond For The Construction Of The Seward Community Library Museum Pg. 10 8. UNFINISHED BUSINESS A. Items Postponed from the December 13, 2010 Meeting 1. Resolution 2010 -129, Authorizing The Issuance And Sale Of General Obligation Bonds In The Aggregate Principal Amount Of Not To Exceed $3,730,000 To Pay The Costs Of Library /Museum Capital Improvements In The City, Fixing Certain Details Of Such Bonds, And Pledging The Full Faith And Credit Of The City To The Payment Thereof .Pg. 14 2. Resolution 2010 -127, Authorizing The City Manager To Enter Into Amendment Number Three With RISE Alaska, LLC (RISE) For Professional Project Management Services Through 100% Design For The New Co- Located Library Museum Facility, Appropriating Additional Funding Not -To- Exceed Forty Eight Thousand Forty Eight Dollars ($48,048) . Pg. 40 3. Resolution 2010 -128, Authorizing The City Manager To Enter Into Amendment Number Two With ECl/Hyer Inc. For Professional Construction Documents Basic Services For The New Co- Located Library Museum Facility, And Appropriating Additional Funding Not -To- Exceed Four Hundred Two Thousand Five Hundred Ninety One Dollars ($402,591) Pg.45 , 9. NEW BUSINESS A. Resolutions *1. Resolution 2011 -004, Accepting A Rasmuson Tier II Grant Matching Grant In The Amount Of $500,000 For Construction Of The Library /Museum Pg. 59 2. Resolution 2011 -005, Authorizing The City Manager To Extend The Maintenance And Operating Agreement With Seward Ship's Drydock, Inc. Through August 31, 2011 Pg. 72 3. Resolution 2011 -006, Amending The City Of Seward's Calendar Year 2011 State Legislative Priorities Pg. 81 *4. Resolution 2011 -007, Retroactively Amending The 2010 Budget To Record Expenditures Of $138,285.65 Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees Retirement System Liability, Per HB300 Pg. 93 C. Other New Business Items *1. Approval Of The January 10, 2011 City Council Regular Meeting Minutes Pg. 97 *2. Appoint Scott Seabury to the Planning and Zoning Commission for a term to expire February, 2012 . Pg. 104 *3. Appoint Vice Mayor Jean Bardarson to collect City Manager and City Attorney evaluations for the March council meetings. City of Seward, Alaska Council Agenda January 24, 2011 Page 2 4. Discuss whether to postpone the City Clerk evaluation to June, 2011 or to the next evaluation period in 2012. *5. Non - objection for the liquor license renewals for the American Legion, The Ivory Cove and Christo's Palace Pg. 105 10. INFORMATIONAL ITEMS AND REPORTS (No action required) a. November City Financial Report Pg. 113 b. November Providence Financial Report ..Pg. 114 11. COUNCIL COMMENTS 12. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to speak] 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda January 24, 2011 Page 3 Fes? " -, ,.,. .a „: w . . r-, '74.M a'" „k, .-, .. l .. . -:� ..... mb y ,4 »; «.. _ _" a •,-, .._ ... x, u 8 .... ^ '?,, -.. ,,, w ax v . wA MM - - In Memoriam ,; Oscar Watsjold if The Seward City Council is gathered together in memoriam to honor September 4, 1917 - January 9, 2011 former Seward Fire Chief Oscar Watsjold. a Oscar joined the Seward Fire Department in 1941, was the Seward i 1 - Fire Chief from 1962 to 1982, and remained involved with the �- fiwuz . Department until his death for a total of 69 years of service. He was % R the Fire Chief during the 1964 Earthquake and was instrumental in the rebuilding of Seward. He received the Governor's Volunteer Award in 1985 and the Del Moffat award from the Alaska State si Firefighter's Association in 1992. Oscar was a member of the Alaska'. , Territorial Guard in World War II, a charter member of the Seward j 1 ":7', Elks Lodge, and a member and Past President of the Pioneers of ;l Al Alaska, Igloo 9. fi . "a< e , ,- ', Oscar did so much for our community, from driving our children to school to serving on the City Council. He was an avid backcountry skier and had a great passion for life. He will be sorely missed and .e always remembered. On behalf of the Seward City Council, we hereby present this Special Recognition in Memoriam to the family of Oscar Watsjold and extend 4 A ,�` ° our sincere condolences. � '. Dated this 24th day of January, 2011. §� ,; 1, ,,,, ,' Bob Valdatta, Councilmember Ristine Casagranda, Councilmember Marianna Keil, Councilmember Vanta Shafer, Councilmember a d ' 'z " ,, ,, Tom Smith, Councilmember Jean Bardarson, Vice -Mayor , r > Willard E. Dunham Mayor s ., - � '.' - ;� .... , ...c..u.:d. ` • �� a"�Y'`: �' ..,.� r "R1 4 :: ' "x ".: �. .:.,:.:s "01¢ = , ::s .— ... _ '',W'' ... a "="=', .,;.a. .., X,... s..aZ E. .:Y «,. �0 . �'ia�'�S:.�a' y < rA/Wi:..�. ;,,,,W.A't02 0 .04%?k a ^ a<.s Sponsored by: Oates Introduction: January 10, 2011 Public Hearing: January 24, 2011 Enactment: Jaunary 24, 2011 CITY OF SEWARD, ALASKA ORDINANCE 2010 -009 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE SECTION 5.35.055 TO CREATE A REVENUE SOURCE FOR REPAYMENT OF THE $3.73M GENERAL OBLIGATION BOND FOR CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY MUSEUM BY ESTABLISHING A VARIABLE SEASONAL SALES TAX THAT INCREASES THE CITY OF SEWARD RATE TO 5% DURING APRIL THROUGH SEPTEMBER OF EACH YEAR AND REDUCES THE RATE TO 3% IN OCTOBER THROUGH MARCH OF EACH YEAR WHEREAS, the City of Seward and the Seward Community Library Museum Building Committee have been working since 2003 to obtain funding and design a new library museum; and WHEREAS, the Seward Community Library Museum Building Committee and the City of Seward have secured $5.1 Million in State and private foundation funding and $1.1 Million in grant applications are pending; and WHEREAS, in October 2009 voters approved a General Obligation bond in an amount not to exceed $5 Million for construction of the library /museum; and WHEREAS, the administration and project managers have estimated that $3.73 Million will be needed to complete the project as currently projected; and WHEREAS, the annual debt service cost for a 25 -year $3.73 million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year; and WHEREAS, a revenue source is necessary to establish and pay the debt service on a General Obligation Bond; and WHEREAS, sales tax is a revenue source by which city residents, local residents, and visitors will all contribute to the construction and operating costs of the new library museum; and WHEREAS, the current City of Seward sales tax rate is 4% and is combined with a Kenai Peninsula Borough sales tax rate of 3% for a total rate of 7 %; and CITY OF SEWARD, ALASKA ORDINANCE 2010 -009 WHEREAS, a variable seasonal sales tax that increases the current City of Seward sales tax 1% to a rate of 5% from April through September and decreases the current City of Seward sales tax 1% to a rate of 3% from October through March would generate approximately $348,000 in additional tax revenue each year for the City; and WHEREAS, the variable seasonal sales tax would result in a combined Borough and City sales tax rate of 8% from April through September and 6% from October through March; and WHEREAS, the variable seasonal sales tax proposed above would keep year -round taxes at current levels for full -time residents of Seward when their purchases are spread equally throughout all months of the year; and WHEREAS, the combined Kenai Peninsula Borough and City of Seward variable seasonal sales tax of 8% from April through September and 6% from October through March is expected to provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $99,000 annually to assist in paying for the increases in personnel and operating costs for the new library museum; and WHEREAS, according to State law, a tax imposed solely for the purpose of repayment of debt is not subject to voter referendum, however in this case, the seasonal sales tax will generate more annual revenues than is necessary solely to repay debt, and will therefore this ordinance may be subject to a voter referendum; and WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this sales tax change should sunset when the $3.73 Million General Obligation Bond is paid in full. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Section 5.35.055 is amended as follows (strike out = deletions; bold italics = additions): 5.35.055. Computation; addition of tax to total retail price; tax schedule. (a) The amount of the sales tax to be added to the sales price, charge or rental shall be three (3) percent from October 1 through March 30 and five (5) percent from April 1 through September 30 of the sale price, charge or rental rounded off to the nearest cent by eliminating any fraction of one -half cent or less and by increasing any fraction over one -half cent to the next highest cent. Each seller shall be furnished the schedule of tax payable on each taxable amount from $0.01 to $100.00. Any one sale of items separately priced shall be taxed upon the aggregate amount. ril 1, 2003, 10 CITY OF SEWARD, ALASKA ORDINANCE 2010 -009 the amount of the sales tax to be added to t- - . - • - -- . (b) The revenue from a coin - operated machine shall be treated in gross on a monthly basis, without reference to the amount paid or placed on a particular transaction. Section 2. These changes to the City of Seward sales tax rates are for the purpose of paying the annual debt service for a 25 -year $3.73 Million General Obligation Bond, to complete the library museum project, and to cover a portion of the added annual operating costs. Section 3. Section 1 of this ordinance shall become effective April 1, 2011. This ordinance shall take effect 30 days following passage and posting. ENACTED by the City Council of the City of Seward, Alaska, this 24 day of January, 2011. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney City Clerk (City Seal) Council Agenda Statement 4 01 seh, Meeting Date: January 10, 2011 From: Phillip Oates, City Manager 441•P • Agenda Item: A ordinance of the City Council of the City of Seward, Alaska, amending Seward City Code Section 5.35.055 to create a revenue source for repayment of the $3.73M General Obligation Bond for construction of the Seward Community Library Museum by establishing a variable seasonal sales tax that increases the City of Seward rate to 5% during April through September of each year and reduces the rate to 3% in October through March of each year. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward has been working on a plan to build a new library museum. As of November 2010 architects completed design documents to 65% with a goal of completing construction documents in January, ground breaking in April -May 2011, and completion of the project in August 2012. Project and construction management have been hired. The Seward Community Library Museum Building Committee (SCLMBC) has spearheaded project predevelopment activities and fundraising efforts. SCLMBC and City Administration have presented over thirty Resolutions to Council since 2003 that either supported, funded or authorized the project progress. As a result, the City received an appropriation of $4.7M from the State of Alaska in July. The Rasmuson Foundation committed $500,000 in November and $1.1M in grant applications have been submitted. In October 2009 voters approved a General Obligation (GO) bond in an amount not to exceed $5 Million for construction of the library museum. Since that approval, City Administration and project managers have estimated that as currently projected $3.73 Million will be needed to complete the project. This ordinance requests that the City Council create a variable seasonal sales tax as a source of revenue to repay the proposed $3.73M GO bond as the City of Seward portion of the cost of constructing the library museum. A sales tax is a revenue source where city residents, local residents, and visitors all contribute to the construction and operations costs of the new library museum. The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. A variable seasonal sales tax that increases the current City of Seward sales tax 1% to a rate of 5% from April through September and decreases the current City of Seward sales tax 1')/0 to a rate of 3% from October through March would generate approximately $348,000 in additional tax revenue annually for the City. Such a variable seasonal sales tax would result in a total Borough and City sales tax rate of 8% from April through September and 6% from October through March. This variable seasonal sales tax would keep year -round taxes at current levels for full -time residents of Seward when their purchases are spread equally throughout all months of the year. The City of Seward variable seasonal sales tax of 5% from April through September and 3% from October through March is expected to provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $99,000 annually to assist in paying for the increases in personnel and operating costs for the new library museum. The proposed ordinance also establishes a recommendation from the current City Council to a future City Council that this sales tax change should sunset when the $3.73 Million General Obligation Bond is paid in full. 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. INTENT: This ordinance requests that the City Council create a variable seasonal sales tax as a source of revenue to repay the proposed $3.73M GO bond as the City of Seward portion of the cost of constructing the library museum. ATTORNEY REVIEW: Yes FISCAL NOTE: The variable seasonal sales tax covers capital debt annual payments and provides approximately $99,000 per year for increased personnel, maintenance, and operating costs of the new library museum. Estimated additional annual personnel, maintenance, and operating costs - as noted in the business plan - are $260,000. This leaves a shortfall of approximately $161,000 dollars each year since annual funding to cover the remainder of these costs has not been identified. There are three important points to note here. First, because the proposed seasonal sales tax will generate more money than is needed to cover the annual debt service payments on the bonds, this ordinance may be subject to voter referendum. Second, the City Council has expressed its intent to delay identifying additional revenues to cover the remaining shortfall related to operating costs until preparation of the biennial budget. This annual shortfall is estimated at $161,000 even after the seasonal sales tax is implemented. To cover costs of this magnitude would require, for example, an increase in the mill rate of 0.54 mills equal to $108 per year on a house valued at $200,000 or, alternatively, a 0.18 percent increase in the sales tax rate. However, if a funding source for these costs is not identified prior to submittal of a bond application to the Alaska Municipal Bond Bank, it will weaken the City's application for bond financing. Third, if the seasonal sales tax sunsets upon maturity of the bonds, there will be an additional annual operating cost shortfall at that time of approximately $99,000 (based on today's costs). ,;� Approved by Finance Department `4 RECOMMENDATION: Approve Ordinance 2010 -009 to establish a variable seasonal city sales tax as a revenue source to pay the debt service of a $3.73M GO Bond for the library museum project. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -130 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING A 1 MILL INCREASE IN PROPERTY TAX TO GENERATE A REVENUE SOURCE FOR REPAYMENT OF THE $3.73M GENERAL OBLIGATION BOND FOR THE CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY MUSEUM. WHEREAS, the City of Seward and the Seward Community Library Museum Building Committee have been working since 2003 to obtain funding and design a new library museum; and WHEREAS, the Seward Community Library Museum Building Committee and the City of Seward have secured $5.1 Million in state and private foundation funding and $1.1 Million in grant applications are pending; and WHEREAS, in October 2009 voters approved a General Obligation bond in an amount of not to exceed $5 Million for construction of the library museum; and WHEREAS, in a report to City Council on November 29, 2010, RISE Alaska and ECI /Hyer estimated the remaining capital construction costs for the library museum project to be $10,294,560.City Administration and project managers have estimated that $3.73 Million of additional funding in the form of general obligation bonds will be needed to complete the project as currently projected; and WHEREAS, the annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249 Thousand per year WHEREAS, a revenue source is necessary to establish and pay the debt service of a General Obligation Bond; and WHEREAS, a property tax is a revenue source where property owners in the City of Seward contribute to the construction and operations costs of the new library museum; and WHEREAS, the current City of Seward property tax mill rate is 3.12; and WHEREAS, increasing the current City of Seward property tax mill rate from 3.12 to 4.12 for approximately 600 property owners within the city limits will generate an estimated $300 Thousand annually. kD CITY OF SEWARD, ALASKA RESOLUTION 2010 -130 WHEREAS, an increase in the City of Seward property tax mill rate to 4.12 is expected to provide sufficient revenue to repay a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51 Thousand to assist in paying for the increases in personnel and operating costs for the new library museum; and WHEREAS, a one mill increase in property tax rate will equate to an annual increase in tax of $200 on a home valued at $200,000; and WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this mill rate increase should sunset when the $3.73 Million General Obligation Bond is paid in full. NOW THEREFORE,, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1.The rate of levy on the 2011 real and personal property tax rolls shall be and is hereby levied at the rate of 4.12 mills per dollar of assessed valuation in Municipal Service Zones One (Borough designation TCA 40) and Two (Borough designation TCA 41). Section 2. The total assessed valuation as determined by the Kenai Peninsula Borough Assessor, and any supplemental assessment rolls for said period which may be certified by the Borough Assessor at a future date, shall be the basis for computing estimated property tax revenues for the City of Seward, Alaska. Section 3.The additional funds realized from the increased tax levy adopted by this resolution are intended for repayment of general obligation bonds issued pursuant to Resolution 2010- i 2`1 . Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor Council Agenda Statement Meeting Date: December 13, 2010 e� :. of sets, From: Phillip Oates, City Manager u Agenda Item: A resolution of the City Council of the City of 4�q KP Seward, Alaska, establishing a 1 mill increase in property tax to generate a revenue source for repayment of the $3.73M General Obligation Bond for the construction of the Seward Community Library Museum. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward has been working on a plan to build a new library museum. As of November, architects completed design documents to 65% with a goal of completing construction documents in January, ground breaking in April -May 2011, and completion of the project in August 2012. Project and construction management have been hired. The Seward Community Library Museum Building Committee (SCLMBC) has spearheaded project predevelopment activities and fundraising efforts. SCLMBC and City Administration have presented over thirty Resolutions to Council since 2003 that either supported, funded or authorized the project progress. As a result, the City received an appropriation of $4.7M from the State of Alaska in July 2010. The Rasmuson Foundation committed $500,000 in November 2010 and $1.1M in grant applications has been submitted. In October 2009 voters approved a General Obligation (GO) bond in an amount to $5 Million for construction of the library museum. Since that approval, City Administration and project managers have estimated that as currently projected $3.73 Million will be needed to complete the project. The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. This resolution requests that the City Council increase the mill rate from 3.12 to 4.12 for approximately 600 property owners within the city limits. The estimated revenue increase from this 1 mill increase in property tax is approximately $300,000 per year. The 1 mill increase would provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51,000 annually to assist in paying the approximate $260,000 annual increase in personnel, maintenance, and operating costs for the new library museum. The proposed resolution also establishes a recommendation from the current City Council to a future City Council that this 1 mill increase should sunset when the $3.73 Million General Obligation Bond is paid in full. 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. INTENT: This resolution requests that the City Council increase the property tax mill rate from 3.12 to 4.12 to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51,000 annually to assist in paying the approximate $260,000 annual increase in personnel, maintenance, and operating costs for the new library museum. ATTORNEY REVIEW: Yes FISCAL NOTE: The 1 mill increase will cover capital debt annual payments and provide approximately $51,000 per year for increased personnel, maintenance, and operating costs of the new library museum. Estimated additional annual personnel, maintenance, and operating costs - as noted in the business plan are $260,000. This leaves a shortfall of approximately $209,000 dollars each year since annual funding to cover the remainder of these costs has not been identified. The City Council intends to address this matter during the preparation of the biennial budget. To cover costs of this magnitude would require, for example, an increase in the mill rate of 0.7 mills equal to $139 per year on a house valued at $200,000 or, alternatively, a 0.23 percent increase in the sales tax rate. There are two primary issues to take note of on this action. First, because the requested increase in the mill rate is not limited to the amount needed to cover debt service costs only, the mill rate increase of 1 mill necessarily subjects this increase to referendum by the voters. Second, because the increase in mill rate is not sufficient to cover both the increase in annual debt service costs and annual operating costs associated with the project, it is likely that the Alaska Municipal Bond Bank will have difficulty supporting this request until a revenue source is found to cover the shortfall. The potential failure of the Bond Bank to approve our financing application will at the very least, cause further delay in the project Approved by Finance Department JAL t4ult-) RECOMMENDATION: Approve Resolution 2010 -130 to establish a 1 mill increase in the annual mill rate as a revenue source to pay the debt service of a $3.73M GO Bond for the library museum project. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,730,000 TO PAY THE COSTS OF LIBRARY/MUSEUM CAPITAL IMPROVEMENTS IN THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS, AND PLEDGING THE FULL FAITH AND CREDIT OF THE CITY TO THE PAYMENT THEREOF WHEREAS, pursuant to Resolution 2009 -53 of the City of Seward (the "City ") passed and approved on June 22, 2009, the following question, referred to at the election held on October 6, 2009 as Proposition No. 3 ( "Proposition 3 "), was passed and approved: PROPOSITION NO. 3 General Obligation Bonds for Seward Community Library Museum Capital Improvements Shall the City of Seward incur debt and issue general obligation bonds in an amount not to exceed five million dollars ($5,000,000) to finance the construction of community library museum capital improvements in the City? Bonds may not be issued until the City has obtained additional funding through contributions and grants for the remainder of the costs of the project. The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and interest on the Bonds will not exceed the annual amount to be received by the City from a one -half percent sales tax. PROPOSITION NO. 3 YES NO A "Yes" vote authorizes the issuance of not to exceed $5 million dollars of general obligation bonds for capital costs for the library /museum project. A "No" vote does not authorize the issuance of not to exceed $5 1- CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 million dollars of general obligation bonds for capital costs for the library /museum project. WHEREAS, in a report to the City Council by ECI /flyer & RISE Alaska on November 29, 2010, the total cost of competing the library /museum project is estimated to be approximately $10,294,560; and WHEREAS, the City received grants and donations to fund a substantial portion of the project costs; and WHEREAS, it is necessary and in the best interest of the City and its residents that the City proceed to plan, design, do site preparation for, construct, acquire, renovate, install and equip the capital improvements within the City described in Proposition 3 (the "Project "), and issue not to exceed $3,730,000 principal amount of the general obligation bonds referred to in Proposition 3, to pay costs of the Project; and WHEREAS, under the Internal Revenue Code, the City may issue its general obligation bonds as tax - exempt bonds or, if such statutory authorization is available, as taxable "Build America Bonds," or as taxable "Recovery Zone Economic Development Bonds;" and WHEREAS, the City Council finds that it is necessary and appropriate to delegate to the Seward Finance Director authority to determine whether to issue the bonds as tax - exempt bonds, taxable "Build America Bonds," or taxable "Recovery Zone Economic Development Bonds," or as a combination thereof with each type of bonds being issued in a separate series, to determine the maturity amounts, interest rates and other details of each series of bonds, and to determine other matters that are not provided for in this resolution; and WHEREAS, the City intends to sell its bonds to the Alaska Municipal Bond Bank, which will purchase the bonds with proceeds of an issue of general obligation bonds; and WHEREAS, there has been presented to the City the form of a Loan Agreement between the Alaska Municipal Bond Bank and the City, which provides for the Alaska Municipal Bond Bank to purchase the Bonds on the terms and conditions set forth therein and in this resolution, and it is in the best interest of the City that it sell the bonds to the Alaska Municipal Bond Bank under such terms and conditions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 2 1� CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SEWARD, ALASKA that: SECTION 1. Definitions. The following terms shall have the following meanings in this resolution: (a) "Bond" or "Bonds" means any of the Bonds of the City, the issuance and sale of which are authorized herein as the evidence of the indebtedness referred to in Proposition 3. (b) "Bond Bank" means the Alaska Municipal Bond Bank. (c) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the owners or nominees of the Registered Owners of the Bonds. (d) "Build America Bonds" means the Bonds that are described in Section 54AA(d)(1) of the Code. (e) "City" means the City of Seward, Alaska, a municipal corporation of the State of Alaska. (f) "City Council" means the City Council of the City, as the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. (f) "Code" means the Internal Revenue code of 1986, as amended from time to time, together with all regulations applicable thereto. (g) "Cost" or "Costs" means the cost of planning, designing, acquiring property for, site preparation, constructing, acquiring, renovating, installing and equipping the Project, including interest on the Bonds during the period of planning, designing, acquiring property for, site preparation, constructing, acquiring, renovating, installing, and equipping the Project, the cost whether incurred by the City or by another of field surveys and advance planning undertaken in connection with the Project properly allocable to the Project, the cost of acquisition of any land or interest therein required as the site or sites of the Project or for use in connection therewith, the cost of any indemnity and surety bonds and premiums on insurance incurred in connection with the Project prior to or during construction thereof, all related direct administrative and inspection expenses whether incurred by the City or by another in connection with the Project prior to or during construction 3 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 thereof and allocable portions of direct costs of the City, legal fees, costs of issuance of the Bonds by the City, including financing charges and fees and expenses of bond counsel, financial advisors and consultants in connection therewith, the cost of any bond insurance premium, any required reserve fund obligations, the cost of audits, the cost of all machinery, apparatus and equipment, cost of engineering, architectural services, designs, plans, specifications and surveys, estimates of cost, the reimbursement of all moneys advanced from whatever source for the payment of any item or items of cost of the Project, and all other expenses necessary or incidental to determining the feasibility or practicability of the Project, and such other expenses not specified herein as may be necessary or incident to the acquisition and development of the Project, the financing thereof and the putting of the same in use and operation. (h) "Loan Agreement" means the Loan Agreement between the City and the Bond Bank, dated as of the date of the Bonds. (i) "Project" means library /museum capital improvements in the City authorized by Proposition 3. (j) "Recovery Zone Economic Development Bonds" means Bonds that are described in Section 1400U- 2(b)(1) of the Code. (k) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (1) "Registrar" means the Finance Director of the City, or any successor that the City may appoint through resolution. SECTION 2. Authorization of Bonds and Purpose of Issuance. For the purpose of providing the funds required to pay the Costs of the Project, to provide for original issue discount or premium, if any, and to pay all costs incidental thereto and to the issuance of the Bonds, the City hereby authorizes and determines to issue and sell the Bonds in the aggregate principal amount of not to exceed $3,730,000. The Bonds shall be designated "City of Seward, Alaska General Obligation Library /Museum Bonds 20XX." The City has ascertained and hereby determines that each and every matter and thing as to which provision is made in this resolution is necessary in order to carry out and effectuate the purpose of the City in accordance with the Constitution and the statutes of the State of Alaska and to incur the indebtedness and issue the Bonds as referred to in Proposition 3. 4 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SECTION 3. Obligation of Bonds. The Bonds shall be direct and general obligations of the City and the full faith and credit of the City are hereby pledged to the payment of the principal of and interest on the Bonds. The City hereby irrevocably pledges and covenants that it will levy and collect taxes upon all taxable property within the City without limitation as to rate or amount, in amounts sufficient, together with other funds legally available therefor, to pay the principal of and interest on the Bonds as the same become due and payable. SECTION 4. Date, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be dated as of the date of delivery, shall be in the denomination of $5,000 or any integral multiple thereof, or such other date and denominations as may be determined by the Finance Director, and shall be numbered separately in such manner and with any additional designation as the Registrar deems necessary for purposes of identification. The Finance Director is authorized to determine whether to issue the Bonds in one or more series or subseries in one or more of the following categories: Tax - Exempt Bonds, Build America Bonds, Recovery Zone Economic Development Bonds, or such other form as may be authorized by the Code, or as any combination thereof. The Bonds shall bear interest from the date thereof, payable on February 1, 2012, and semiannually thereafter on August 1 and February 1 of each year or such other dates as may be determined by the Finance Director. Interest shall be computed on the basis of a 360 -day year composed of twelve 30 -day months. The Finance Director is authorized to fix and determine the maturity dates and the rate of interest on each principal installment of the Bonds, provided that (i) no rate of interest on a principal installment shall exceed the rate of interest on the corresponding maturity of the bonds of the Bond Bank issued to provide funds to purchase the Bonds; (ii) the true interest cost of the Bonds (blended in the case of multiple series or subseries) shall not exceed 6% unless approved by resolution of the City Council; and (iii) all of the Bonds shall mature on or before December 31, 2030. SECTION 5. Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. For so long as all outstanding Bonds are registered in the name of the Bond Bank, payments of principal and interest thereon shall be made as provided in the Loan Agreement. In the event that the Bonds are no longer owned by the Bond Bank, payments of principal and interest on the Bonds will be made by check or draft mailed by first class mail to the Registered Owners of the Bonds at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the payment date, provided that the final installment of principal and interest on the Bonds will be payable at the principal office of the Registrar upon surrender of the Bond. SECTION 6. Optional Redemption or Prepayment. The Finance Director is hereby authorized to establish redemption and prepayment provisions, if any, for the Bonds as set forth in the Loan 5 1� CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Agreement. SECTION 7. Form of Bond. Each Bond shall be in substantially the following form, subject to the provisions of the Loan Agreement: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD, ALASKA (A Municipal Corporation of the State of Alaska) NO. $ GENERAL OBLIGATION LIBRARY /MUSEUM BONDS 20XX REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Seward, Alaska (the "City "), a home rule municipal corporation of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, the Principal Amount indicated above in the following installments on 1 of each of the following years, and to pay interest on such installments from the date hereof, payable on 1, 20XX and semiannually thereafter on the first days of and of each year, at the rates per annum as follows: Principal Interest Year Amount Rate • For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bank "), payment of principal and interest shall be made as provided in the Loan Agreement between the Bank and the City (the "Loan Agreement "). In the event that this Bond is no longer owned by the Bank, payment of principal of and interest on this Bond will be made by check or draft mailed by first class mail to the registered owner at the address appearing on the bond register of the City on the 15th day of the month preceding the payment date, provided that the final installment of principal and interest on this Bond will be payable at the office of the City Finance Director (the "Registrar ") upon surrender of this Bond. Interest shall be computed on the basis of a 360 -day year composed of twelve 30 -day months. Both principal of and interest on this bond are payable 6 11 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. This Bond is one of the General Obligation Library/Museum Bonds, 20XX of the City of Seward, Alaska of like tenor and effect except as to interest rate, serial number and maturity, aggregating $ in principal amount, and constituting bonds authorized for the purpose of paying the cost of the library /museum capital improvements in the City, and is issued under Resolution 2010- of the City entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,730,000 TO PAY THE COSTS OF LIBRARY /MUSEUM CAPITAL IMPROVEMENTS IN THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS, AND PLEDGING THE FULL FAITH AND CREDIT OF THE CITY TO THE PAYMENT THEREOF (herein called the "Resolution "). The Bonds will be subject to redemption at the option of the City as described in the Loan Agreement. This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. This Bond is a general obligation of the City of Seward, Alaska, and the full faith and credit of the City are pledged for the payment of the principal of and interest on the Bond as the same shall become due. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska to exist, to have happened or to have been 7 a, 0 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 performed precedent to or in the issuance of this Bond, exist, have happened and have been performed, and that the series of Bonds of which this is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution or statutes. IN WITNESS WHEREOF, THE CITY OF SEWARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by its Mayor and its corporate seal to be hereunto impressed or otherwise reproduced and attested by its Clerk, all as of the day of , 20XX. Willard E. Dunham Mayor ATTEST: Johanna Kinney, City Clerk SECTION 9. Execution. The Bonds shall be executed in the name of the City by the Mayor, and its corporate seal shall be impressed or otherwise reproduced thereon and attested by the City Clerk. The execution of a Bond on behalf of the City by persons that at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of delivery of the Bond or shall not have held office on the date of the Bond. SECTION 10. Registration. (a) The Bonds shall be issued only in registered form as to both principal and interest. The City designates the City Finance Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. (b) The City, in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 5, but such registration may be transferred as herein provided. All such payments made as described in Section 5 shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. 8 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 (c) Bonds shall be transferred only upon the Bond Register kept by the Registrar. Upon surrender for transfer or exchange of any Bond at the office of the Registrar, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the registered owner of its duly authorized attorney, the City shall execute and the Registrar shall deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the Registrar may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar. The Registrar shall not be required to transfer or exchange any Bond after the Bond has been called for redemption. (d) The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. SECTION 11. Mutilated, Destroyed, Stolen or Lost Bonds. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with identification satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the authentication and delivery of a new Bond pursuant to this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Any Bonds issued pursuant to this section in substitution for Bonds alleged to be destroyed, stolen or lost shall constitute original additional contractual obligations on the part of the City, whether or not the Bonds alleged to be destroyed, stolen or lost be at any time enforceable by anyone. SECTION 12. Disposition of the Sale Proceeds of the Bonds. The sale proceeds of the Bonds representing accrued interest on the Bonds, if any, shall be applied to pay a portion of the interest due on the Bonds on February 1, 2012 or such other date determined by the Finance Director to be the first interest payment date. The remainder of the sale proceeds of the Bonds shall be applied to pay Costs. The sale proceeds of the Bonds shall be deposited in the appropriate funds or accounts of the City for such purposes. SECTION 13. Tax Covenants. The City covenants not to take or omit to take any action that if taken or omitted would cause (i) the interest on any Tax Exempt Bond to be includable in gross income for federal income tax purposes; (ii) any Build America Bond not to qualify as a Build America Bond; or (iii) any Recovery Zone Economic Development Bond not to qualify as a 9 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Recovery Zone Economic Development Bond. Without limiting the generality of the foregoing, the City covenants that it will make no use of the proceeds of the Bonds that would cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Code, and that it will not take or permit any action that would cause the Bonds to be "private activity bonds" as defined in Section 141 of the Code. SECTION 14. Sale of the Bonds; Loan Agreement. The sale of not to exceed $3,730,000 aggregate principal amount of the Bonds, as provided in the Loan Agreement and this resolution, is hereby authorized and approved. The Mayor or the Finance Director are each hereby authorized to execute and deliver the Loan Agreement, and such other documents as may be necessary to effectuate issuance of the Bonds on behalf of the City. SECTION 15. Authority of Officers. The Mayor, the Finance Director, and the City Clerk are, and each of them hereby is, authorized and directed to do and perform all things and determine all matters not determined by this resolution, or to be determined by a subsequent ordinance or resolution, to the end that the City may carry out its obligations under the Bonds and this resolution. SECTION 16. Amendatory and Supplemental Resolutions. (a) The City Council from time to time and at any time may adopt a resolution or resolutions supplemental hereof, which resolution or resolutions thereafter shall become a part of this resolution, for any one or more of the following purposes: (i) To add to the covenants and agreements of the City in this resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. (ii) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this resolution or in regard to matters or questions arising under this resolution as the City Council may deem necessary or desirable and not inconsistent with this resolution and which shall not adversely affect the interest of the Registered Owner of the Bonds. Any such supplemental resolution may be adopted without the consent of the Registered Owners of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection (b) of this section. (b) With the consent of a bond insurer, if any, or the Registered Owners of not less than 60 percent in aggregate principal amount of the Bonds at the time outstanding, the City Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to 10 D3 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 or changing in any manner or eliminating any of the provisions of this resolution or of any supplemental resolution; provided, however that no such supplemental resolution shall: (i) extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or reduce the amount or change the date of any sinking fund installment, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owners of each Bond so affected; or (ii) reduce the aforesaid percentage of owners of Bonds required to approve any such supplemental resolution without the consent of the owners of all the Bonds then outstanding. It shall not be necessary for the consent of the Registered Owners of the Bonds under this subsection to approve the particulars of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof. (c) Upon the adoption of any supplemental resolution under this section, this resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this resolution of the City and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this resolution for any and all purposes. (d) Bonds executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Bonds modified so as to conform, in the opinion of the City, to any modification of this resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered Owner of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal amounts. SECTION 17. Defeasance. In the event money and /or non - callable Government Obligations maturing at such ties and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to pay or secure the payment of the principal and interest on such Bonds and such Bonds shall be deemed not to be outstanding. SECTION 18. Designation of Tax - Exempt Bonds as Qualified Tax Exempt Obligations. 11 ay CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Depending on the final structure of the Bonds and the principal amount of any Tax - Exempt Bonds the series of Tax - Exempt Bonds, if any, plus the portion of the proceeds of the Bond Bank Reserve Fund Obligations that are or may be used with respect to the series of Tax - Exempt Bonds, may be designated by the Finance Director as "qualified tax exempt obligations" in accordance with Section 265(b)(3) of the Code, and the City hereby covenants that during the calendar year 2011 it shall not issue or designate as "qualified tax- exempt obligations" under Section 265(b)(3) of the Code an aggregate principal amount of tax - exempt obligations (other than tax exempt obligations described in Section 265(b)(3)(C)(ii) of the Code) exceeding $30,000,000. SECTION 19. Miscellaneous. (a) All payments made by the City of, or on account of, the principal of or interest on the Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon, respectively, for principal or interest as the case may be. (b) No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this resolution against any member of the City Council or officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said State or of any political subdivision thereof, except the City. SECTION 20. Continuing Disclosure. The City acknowledges that, under Rule 15c2 -12 of the Securities and Exchange Commission (the "Rule ") the City may now or in the future be an "obligated person" with respect to the Bond Bank bonds. In accordance with the Rule, and as the Bond Bank may require, the City shall undertake to provide certain annual financial information and operating data as shall be set forth in the Loan Agreement. Notwithstanding any other provision of this Resolution, failure of the City to comply with the continuing disclosure obligations shall not be considered a default of the City's obligations under this Resolution or the Bonds; however the owner of any Bond may bring an action for specific performance, to cause the City to comply with its continuing disclosure obligations under the Rule. SECTION 21. Severability. If any one or more of the provisions of this resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bonds. 12 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SECTION 22. Effective date. This resolution shall take 30 days following adoption and posting. PASSED AND APPROVED by the City Council of the City of Seward Alaska, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA William E. Dunham, Mayor ATTEST: Johanna Kinney, CMC City Clerk 13 ab Council Agenda Statement r { o f set Meeting Date: December 13, 2010 9 '�0 From: City Manager Phillip Oates q P Agenda Item: Providing for the issuance of not to exceed $3,730,000 in general obligation bonds of the City to finance a portion of the construction of a combined library /museum capital improvement project BACKGROUND & JUSTIFICATION: In 2003, Seward Mayor Edgar Blatchford proposed developing a community centered project in the Centennial year of Seward's founding to be completed in 2012, the 100 anniversary of the incorporation of Seward. A new combined library museum was selected to be the embodiment of the community's pride by preserving history and providing access to present and future knowledge for the residents of Seward, the outlying areas and all seasonal workers and visitors. The Seward Community Library Museum Building Committee (SCLMBC), the City of Seward, the Seward Community Library Association (SCLA) and the Resurrection Bay Historical Society (RBHS) are working together to complete this project. In a report to City Council on November 29, 2010, RISE Alaska and ECl/Hyer estimated the remaining capital construction costs for the library museum project to be $10,294,560. In 2009, Seward voters approved issuing not to exceed $5 million in general obligation bonds, with the caveat that the bonds would not be issued until the City obtained additional funding through contributions and grants for the remainder of the costs of the project. Private foundation and individual donations and government funding has been committed to cover the majority of the costs. City Administration and project managers have estimated that $3.73 Million of general obligation bonds will be needed to complete the project as currently projected. INTENT: Authorize the issuance of not to exceed $3.73 million general obligation bonds to finance a portion of the capital costs for the library /museum project. 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. FISCAL NOTE: The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. The presumed rate of interest on these bonds is an estimate based on today's market conditions, but is subject to change based on a number of factors including whether the federal government extends the Build America Bond program (which could potentially reduce the effective interest rate), whether municipal bonds continue to find favor in the financial markets, and the overall timing of the proposed bond issue. Any increase in interest rate on the bonds beyond 4.5% will raise the interest costs on the bonds. By way of example, an increase of 50 basis points (to 5.0 %) would raise the annual interest costs an average of $14,000 per year. This resolution does not take into consider the additional operating costs of the new library /museum, estimated to be approximately $260,000, for which there is not yet an identified source of revenue to pay. The issuance of general obligation bonds reduces the City's future a=► CITY OF SEWARD RESOLUTION 2010- financial flexibility to obtain capital financing for critical infrastructure needs. There have been critical capital needs identified in the enterprise funds — especially in the electric utility — and there are no reserves available to meet those needs in the short or long term. Combined with the lack of political will to increase enterprise fund rates to a level necessary to cover those infrastructure needs, it is not unlikely that the General Fund could be called on to meet emergency needs in the City's enterprise funds. This is particularly true in the electric enterprise fund, where cash reserves are expected to be depleted in 2012, with an insufficient rate structure to replenish those reserves. In 2009, the City did not meet the bond coverage requirements for the harbor enterprise fund and the electric enterprise fund, but was able to meet the debt service payments required on all City bonds. This is a warning sign which requires tangible budget modifications in order to meet future coverage requirements. Finally, the City is undertaking the transition from a hospital -based clinic to a community health center (CHC), which is intended to provide long -term cost savings to the overall City - funded healthcare system. In the short -term, the City reserves will be utilized to cover start -up costs for the new center (estimated at $500,000), and in the long -term, the CHC should improve the financial condition of the healthcare system. However, recent State reimbursement rate estimates for the long -term care facility have come in lower than anticipated, which has the potential to adversely impact the ability of Seward Mountain Haven to fully cover debt and operating costs of the long -term care facility. It is too soon to know the magnitude of these potential changes on the finances of the overall City healthcare system. Approved by Finance Department r ATTORNEY REVIEW YES RECOMMENDATION: Council approve Resolution 2010- $19 , authorizing the issuance of not to exceed $3,730,000 in general obligation bonds of the City to finance a portion of the construction of a combined library /museum capital improvement project. a$ FORM OF LOAN AGREEMENT THIS AGREEMENT, dated as of the day of 20, between the Alaska Municipal Bond Bank (the "Bank "), a body corporate and politic constituted as an instrumentality of the State of Alaska (the "State ") exercising _ ublic and essential governmental functions, created pursuant to the provisions of Chap 85, Title 44, Alaska Statutes, as amended (the "Act"), having its principal place of busine a Juneau, Alaska, and the [City] [Borough], Alaska, a duly constituted [City ©o ®, I'd the State ("[City] [Borough] "): s . WITNESSE WHEREAS, pursuant to the Act, the Bank is a t` e IO loankor on (the "Loan" or "Loans ") to governmental units; and Vg , WHEREAS, the [City] [Borough] is a Ggver'tm`e, tal U a -0; ®fine yin the General Bond Resolution of the Bank hereinafter mention ®. tl ni ®ursuan .,. i' is authorized to accept a Loan from the Bank to be evidence Eby nicipal bon ®s and WHEREAS, the [City] [Borough] desires # from the Bank in the .w amount of not to exceed $ _ and has °'mitted an� m o appli cation to the Bank for a Loan in the amount of not to exceed $ :e [Ci 'th ty] [Borough] has duly authorized the issuance of its ecgis 11 � ' tered bo e t, ggregate principal amount of � ro e f. a 3t�-a � $ (the Municip m e d "), which `<.bo a o purchased by the Bank as evidence of the Loan in accordande n ith this Agreement; and WHERE`S Ste- t e3 application the [City] [Borough] contains the information d4 requeste t e t a ,r. �� q �Rl - WH EAS, to ® ; fo the iss hce of bonds of the Bank in order to obtain from time to tirrei�money wi , to make Loans, the Bank has adopted the General Obiigat o Qn Eik yo JF' ly 13, 2005, as amended August 19, 2009 (the "General Bond Re o nd �'� °resolution No. 20_ _, approved on _, 2011 (together: Ge T ;Bond Resolution, the "Bond Resolution "), authorizing the making of suc VLoantf •e [City] [Borough] and the purchase of the Municipal Bond. NOW, THEREFORE, the parties agree: 1. The Bank hereby makes the Loan and the [City] [Borough] accepts the Loan in the aggregate principal amount of $ . As evidence of the Loan made to the [City] [Borough] and such money borrowed from the Bank by the [City] [Borough], the [City] [Borough] hereby sells to the Bank the Municipal Bond in the principal amount, with the principal installment payments, and bearing interest from its date at the rate or rates per annum, stated in Exhibit A appended hereto. For purposes of this Loan Agreement, the aQ\ interest on the Municipal Bond will be computed without regard to the provision in Section 7 hereof for the [City] [Borough] to make funds available to the Trustee acting under the General Bond Resolution for the payment of principal and interest due at least seven (7) business days prior to each respective principal and interest payment date. 2. The [City] [Borough] represents that it has duly adopted or will adopt all necessary ordinances or resolutions, including [Ordinance] [Resolution] No. , adopted on _ , 20 (the "[City] [Borough] [Ordinan = "_.,[Resolution] "), and has taken or will take all proceedings required by law to enable its ``.. i to this Loan Agreement and issue its Municipal Bond to the Bankand that)* 40 a "al Bond will constitute [a general obligation bond, secured by t e1. faith 0µt a revenue bond, a special and limited obligation] of the [City] o h]dul a , ay [ C ity's] [Borough's] [Ordinance] [Resolution]. >,: %�F. ms `s gam' I �r i" `wl -, �' 3. Subject to any applicable legal limitatiorfAMW 4 nts to be' a 0 '.® ' the [City] [Borough] pursuant to this Loan Agreement repress : a t due on its Mun cipal Bond (the "Municipal Bond Interest Payments ") shall be o a as the same rate or rates of interest borne by the corresponding m to it ,of`the bola °, `o sy the Bank in order to obtain the money with which to mak the y �o Vi a , nd to pure en.the Municipal Bond (the "Loan Obligations ") and shall be paidtby e [010 [BoroilP - at least seven (7) business days before the interest payment date so =aitC pprovide funds sufficient to pay interest as the same becomes due on the Loan O hl i ga ti o X w , 4. The amounts to be paid by the [ €ty [ oro pursuant to this Loan Agreement representing principal, d u e on its Munlc liB nd (the "Municipal Bond Principal Payments "), shall be paid at leas w` even (7) bu s nes , ay before the payment date stated in the Municipal Bond so a's�o. funds sufficiient to pay the principal of the Loan Obligations as, the same matures; ed upon the maturity schedule stated in Exhibit A appended he e r, .: _ t t'e3amounts ref r ed to in Sections 3 and 4 hereof to be paid by the t E.t C Borou pu0 �. t ®,this Loan, Agreement are not made available at any time spec �_h 'n, the [c orough] agrees that any money payable to it by any depa o ::',ency of th_ to may be withheld from it and paid over directly to the Trustee 3i. , ier th e eral Bond Resolution, and this Loan Agreement shall be full warrant, a ® r e . ionx make such payment upon notice to such department or agency by t e = n i h a co provided to the [City] [Borough], as provided in the Act. 6. In the - event Loan Obligations have been refunded and the interest rates the Bank is required to pay on its refunding bonds in any year are less than the interest rates payable by the [City] [Borough] on the Municipal Bond for the corresponding year pursuant to the terms of the Municipal Bond, then both the Municipal Bond Interest Payments and the Municipal Bond Principal Payments will be adjusted in such a manner that (i) the interest rate paid by the [City] [Borough] on any principal installment of the Municipal Bond AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Docs\37420001 \Form Documents \Form of Loan Agreement.wpd Page 2 36 is equal to the interest rate paid by the Bank on the corresponding principal installment of the Bank's refunding bonds and (ii) on a present value basis the sum of the adjusted Municipal Bond Interest Payments and Municipal Bond Principal Payments is equal to or Tess than the sum of the Municipal Bond Interest Payments and Municipal Bond Principal Payments due over the remaining term of the Municipal Bond as previously established under this Loan Agreement. In the event of such a refunding of Loan Obligations, the Bank shall present to the [City] [Borough] for the [City's] [Borough's] approval, a revised schedule of principal installment amounts and interest rates for the Municipal B nd If approved by the [City] [Borough] the revised schedule shall be attached here b. asp Exhibit A and p �h A incorporated herein in replacement of the previous Ex _ ibit d ' _.� e i �'�g said principal installment amounts and interest rates._ tom= 7. The [City] [Borough] is obligated to paytt t I„ ., e ..,*__M-1_,_ ° ' } r g es S uch Fees a Charges actually collected from the [City]' 4a -.®l ® shall b� o nt sufficient, together with the [City's] [Borough's] Allocabl iq` 6 ©0 (as define ®e. o ) of o other money available therefor under the provisions ® 9 � ;.esolution, and other money available therefor, including any specific grant a� , � ` .-United States of America or any agency or instrumentality thereo ®� m by they o any agency or d ` -ti instrumentality thereof and amounts applieers o_from aoun s� t ansferred to the Operating Fund pursuant to Section 606 of the General'Bond Resolution: (a) to pay, as the same be d e,.t a [ci [Borough's] Allocable zpi i v im - Proportion of the Administrative Expenses of the as, nk, and . (b) to pay, as ame becom a th e` [City's] [Borough's] Allocable Proportion of the fees and e of the T a d paying agent for the Loan Obligations. [C 's l o c 8 . f Proportion as used herein shall mean the proportio, ate 3 ou ' 81 t to Fe a nt i n respect to which the term is used determin ® - h r log h t princi ® a ount of the Municipal Bond outstanding bears to th ts a., o al Loan `_t � t Landing ' o I Governmental Units under the General Bond Reso 'o .: a „certified ®. k. The waiver by the Bank of any fees payable pursuant to this ect ©£ 7-i.shall note a` et ute a subsequent waiver thereof. 8 ' e [[City] [ ®ro i s obligated to make the Municipal Bond Principal Payments s ch3 e�� y t e�Bank. The first such Municipal Bond Principal Payment is due K tip �.. � N at least seven (7-)�business days prior to the date indicated on Exhibit A appended hereto, and thereafter on the an iversary thereof each year. The [City] [Borough] is obligated to make the Municipal Bond Interest Payments scheduled by the Bank on a semi - annual basis commencing seven (7) business days prior to the date indicated on Exhibit A appended hereto, and to pay any Fees and Charges imposed by the Bank within 30 days of receiving the invoice of the Bank therefor. AMBB /General Obligation Bonds, 20_ Series Loan Agreement I:\Docs137420001 \Form Documents \Form of Loan Agreement.wpd Page 3 3' 9. The Bank shall not sell and the [City] [Borough] shall not redeem prior to maturity any portion of the Municipal Bond in an amount greater than the Loan Obligations which are then outstanding and which are then redeemable, and in the event of any such sale or redemption, the same shall be in an amount not Tess than the aggregate of (i) the principal amount of the Municipal Bond (or portion thereof) to be redeemed, (ii) the interest to accrue on the Municipal Bond (or portion thereof) to be redeemed to the next redemption date thereof not previously paid, (iii) the applicable prmium, if any, payable on the Municipal Bond (or portion thereof) to be redeemed, and (iv)t cost and expenses of the Bank in effecting the redemption of the Municipal Bond (or a t,, ereof) to be redeemed. The [City] [Borough] shall give the Bank at least 50 da`' ointention to redeem its Municipal Bond. F_ �`4a k In the event the Loan Obligations with respect ®4 I ; to maturity of such Municipal Bond is being made ha ®ed a�i s g bonds of the Bank issued for the purpose of refunding ;t ©• li st ed in a principal amount in excess of or less than the print ® .the M unic oa °Bond remaining unpaid at the date of issuance of such refunds © ®� a mount which the [City] [Borough] shall be obligated to pay or th ha I r c r item (i) above principal g tstand shall be the rinci al amount of such refundiri �on ®� o � In the event the Loan Obligations have been - ref dnd the interest the Bank is required to pay on the refunding bonds i less tha the '' d,I est;e Bank was required to pay on the Loan Obligations, the amount whit xthe [Cit gh] shall be obligated to pay or the Bank shall receive under em (n) abo s all be t e amount of interest to accrue on such refunding bonds outstanding ' In the event the Loan Obli; bans have been ref r ded, the amount which the [City] [Borough] shall. •e • biigated t p i r the Bank shall receive under item (iii) above, when a ,, o b ons a ° the refuh.z® bey ed.eemed, shall be the applicable premium, if any, on the o �k ®o m t o� 't . re e e ri g` in th c es "all be co strued as preventing the [City] [Borough] from _unicipal ` ®'a 7.excha ngefora new Municipal Bond in conjunction with a ref nc a, ®fig Loan 1 s , th the delivery of the Municipal Bond to the Bank, the [City] [Borough] shal_; ' sF to h Bank evidence satisfactory to the Bank which shall set forth, among other j;t� t-is a Bond will constitute a valid and binding general obligation of the [City][Bo ough], secured by the full faith and credit of the [City] [Borough]. 11. Invoices for payments under this Loan Agreement shall be addressed to the [City] [Borough], Attention: , , , Alaska 99_ The [City] [Borough] shall give the Bank and the corporate trust office of the Trustee under AMBB /General Obligation Bonds, 20_ Series Loan Agreement \Dots \37420001 \Form Documents \Form of Loan Agreement.wpd Page 4 3d the General Bond Resolution at least 30 days' written notice of any change in such address. 12. The [City] [Borough] hereby agrees that it shall fully fund, at the time of loan funding, its debt service reserve fund (in an amount equal to $ ) which secures payment of principal and interest on its Municipal Bond and that such fund shall be held in the name of the [City] [Borough] with the Loan Trustee. 13. The [City] [Borough] hereby agrees to keep and retain, u ikthe date six years after the retirement of the Municipal Bond, or any bond.issued tolre i d�the Municipal Bond, or such longer period as may be required by the [C '` ].[Bor 's re Lord retention policies and procedures, records with respect to the iFve ment, ex.e dI � d use of ni the proceeds derived from the sale of its Mucip ncludin ® # o Ir tatlon, records, schedules, bills, invoices, check register , ecks a Wi g . documentation evidencing use of proceeds, and inve 1 i , d /or relnve tments `of proceeds. The [City] [Borough] agrees that all records re. red, preceding sentence shall be made available to the Bond Bank upon request 14. Prior to payment of the amountroftheor any portion thereof, and the delivery of the Municipal Bond to the Banr is des n the Bank shall' have the right s =h to cancel all or any part of its obligati k o onereunder,if (a) Any representation, warranty or otherstaterenent made by the [City] [Borough] to the Bank in connection with its app 0°t to Bank for a Loan shall be incorrect or incomplete in any matenal respect x (b) The [City] [Borough] has violated commitments made by it in the terms of this Loan Agreement. zThe financial p oythe [City] [Borough] has, in the opinion of the Bank, suffered a mated II .verse chap g e between the date of this Loan Agreement and the scheduled time of d e r rry cif the Municipal Bond to the Bank. 15 The obligationfthe Bank under this Loan Agreement is contingent upon delivery of its General Obligation Bonds, 20_ Series (the "20 Series Bonds ") and r eipt of the p oceeds thereof. 16. The CI ti!] [ E I Borou 9 l agrees provide rovide the Bank with written notice of 9 rees that it will any default in covenants' under the [City's] [Borough's] [Ordinance] [Resolution] within 30 days from the date thereo 17. The [City] [Borough] shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on the Municipal AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Dots \37420001 \Form Documents \Form of Loan Pgreement.wpd Page 5 33 Bond to become subject to federal income taxes in addition to federal income taxes to which interest on such Municipal Bond is subject on the date of original issuance thereof. The [City] [Borough] shall not permit any of the proceeds of the Municipal Bond, or any facilities financed with such proceeds, to be used in any manner that would cause the Municipal Bond to constitute a "private activity bond" within the meaning of Section 141 of the Code. The [City] [Borough] shall make no use or investment eft pr of the Municipal Bond which will cause the Municipal Bond t9„, be an ai ®ond" under Section 148 of the Code. So long as the Municip 3 Bend is ®n , the [City] [Borough], shall comply with all requirements of said Sect ®n 148 an. I r ti s ns of the United States Department of Treasury issued t h e ad t =ex such requirements are, at the time, applicable and in effect :p t i € orough] h � s e�i ify and hold harmless the Bank from any obligation of t ®rough] to ma rebate payments to the United States under said Section 148 arg04 [City's] [Borough's] use or investment of the proceeds of the Municipal Bon , � 18. The [City] [Borough] agrees that it s one.of the Governmental Units that has a ten percent or greater amount of outs g n d s held by the Bank under its ai General Bond Resolution, it shall execute con tinuing disclosure agreement for purposes of Securities and Exchange Commission Rul 15c, adopted;' under the Securities and Exchange Act of 1934, and provide the Banimams 2-12 ion in future official statements, upon request, financial information generally of ti e nclud Appendix D, under the heading "Summaries of Borrowers ..Representing 1, or More of Outstanding Principal of Bonds Issued Under the 2005,Gneral Bond Resolution, "`to the Official Statement and attached hereto as Exhibit I � Provi ion of the Loan Agreement shall for any reason be held to be invalid oruneaf ® sl � i va l `or u' enforceability of such provision shall not affect any o the r ng m v ®n H of this LoanAgreement and th Loan Agreement shall be co st u d enfor` ifs such invalid or unenforceable provision had not been cola'ned ein. b 20 T'1i Loans A greement may be executed in one or more counterparts, any of which shall *regardedf or aipurposes as an original and all of which constitute but one m and the sae strurn :rent Each party agrees that it will execute any and all documents or other instruments, c t ak e = other actions as are necessary, to give effect to the terms of this Loan Agreement. 21. No waiver by either party of any term or condition of this Loan Agreement shall be deemed or construed as a waiver of any other term or condition hereof, nor shall a waiver of any breach of this Loan Agreement be deemed to constitute a waiver of any AMBB /General Obligation Bonds, 20_ Series Loan Agreement 1:1Docs1374200011Form Documents \Form of Loan Agreement.wpd Page 6 3(--\ subsequent breach, whether of the same or of a different section, subsection, paragraph, clause, phrase or other provision of this Loan Agreement. 22. In this Loan Agreement, unless otherwise defined herein, all capitalized terms which are defined in Article I of the General Bond Resolution shall have the same meanings, respectively, as such terms are given in Article 1 of the General Bond Resolution. 23. This Loan Agreement merges and supersedes a i p �pr�[� renegotiations, representations and agreements between the parties hereto relati V ®tot a =s bject matter hereof and constitutes the entire agreement between t e parties h o `� ect thereof. IN WITNESS WHEREOF, the parties hereto hake c d,thiAgr 4 ~ ett° clay and year first above written. ALASKA MUNI °B ®ND BANK By : rr ib DEVE JFMITCHELL Exec t Director [CITY]OROUGH ; ALASKA By: Its: AMBB /General Obligation Bonds, 20 Series Loan Agreement I: \Dots \37420001 \Form Documents \Form of Loan Agreement.wpd Page 7 EXHIBIT A [City] [Borough], Alaska [General Obligation] [Revenue] Bond, 20_[_] ( "20_ Series A Municipal Bond ") Due Principal Interest 1 Amount ,Rate g i r § Principal installments shall be payable on 1 ineach of the years, and in the amounts set forth above. Interest on the 20 Series A Nunicipal`Bond shall be payable on 1, 20_, and thereafte.on 1 and :` 1 of each year. Prepayment Provisions: The 20 Series A Municipal Bond is not subject to prepayment prior to maturity. AMBB /General Obligation Bonds, 20 Series Loan Agreement - Exhibit A Page A -1 I: \Docs \37420001 \Form Documents \Form of Loan Agreement.wpd 3b [City] [Borough], Alaska [General Obligation] [Revenue] Bond 20_B [Taxable Recovery Zone Economic Development Bond — Direct Payment] [Taxable Build America Bond - Direct Payment] ( "20_ Series B Municipal Bond ") Due Principal Interest 1 Amount Rate ;c Fr�t�' tit Principal installments shall be payable on. „. 141 1n each } of the years, and in the amounts set forth above. Interest on the 20 Series B Municipal °; Bond shall be payable on 1, 20, and thereafte .on 1 and August 1 of each year. Prepayment Provisions: Optional Prepayment The 20 , eriee Municipal Bond principal payments due on or after r 1, 20- subject to in whole or in part at the option of the [City] [Borough o a %date o orr aft a 1, 20_, at a price of 100% of the principal a mount thereo f o b prepakplus` accrciriterest to the date of prepayment. � ��� "'_ �s `ate Extraordl_l�� O ptional Pre ®a a nt. [FOR USE WITH BAB'S /RZEDB's] The 20_ Series B MumclaI I ®nd is subject A bp epayment at the option of the [City] [Borough], in whole or in part ; ferlal adve e change has occurred to Section 54AA or 6431 of the Code (as such . Sections e" 1 ed by Section 1531 of the American Recovery and Reinvestment s ct of 2 9, per rtaining to "Build America Bonds") or to Section 1400U-2 of the Code (as such Stecion was added by Section 1401 of the American Recovery and err Reinvestment Act of 2009, pertaining to "Recovery Zone Economic Development Bonds ") pursuant to which the'[City's] [Borough's] cash subsidy payment from the United States Treasury in respect of the [City's] [Borough's] 20_ Series B Municipal Bond principal payment is reduced or eliminated. In the event the [City] [Borough] exercises such option, the 20_ Series B Municipal Bond principal payment(s) will be prepaid at a prepayment price equal to the greater of (1) 100% of the principal amount of the 20 Series B AMBB /General Obligation Bonds, 20_ Series Loan Agreement - Exhibit A Page A - I: \Does \37420001 \Form Documents \Form of Loan Agreement.wpd an a_ Municipal Bond principal payment to be prepaid; or (2) the sum of the present value of the remaining scheduled payments of principal and interest on the 20 Series B Municipal Bond to be prepaid, not including any portion of those payments of interest accrued and unpaid as of the date on which the 20_ Series B Municipal Bond principal payment is to be prepaid, discounted to the date on which the 20_ Series B Municipal Bond principal payment is to be prepaid on a semi - annual basis, assuming a 3.60 -day year consisting of twelve 30 -day months, at the Treasury Rate plus 100 basis points .00 %); plus, in each case, accrued interest on the 20_ Series B Munici (=1 pal Bond pnncipal payment to be prepaid to the prepayment date. "Treasury Rate" means, with respect to any extraord' ary optlo� I ®e ® - yyment date for a particular 20_ Series B Municipal Bond prince , ymen , t s ®e£ annum, expressed as a percentage of the principal amount, ®- to sem r , � - i- '� yield to maturity or interpolated maturity of the Comp @ I : . te :— ry I s s , q ��. a to i. the fifth decimal, assuming that the Comparable . a , is p' rc s _ on prepayment date for a price equal to the Comparable Ti r. "Comparable Treasu Issue" means, with respec td a e f o d inary optional prepayment date for a particular 20_ Series un iicipal Bond i princpal payment, the United States Treasury securi Bi~M ty or securitieich i as ansactual or interpolated maturity comparable to the remai s wh ning average life ofthe`20 :Series B Municipal Bond principal payment to be redeemed, and that would b ufilizec in c,corc anc w ith customary financial practice in pricing new issues of debt securities o f comarabIe'thatu t the remaining average life of the 20_ Series BigOicipal Bond-principal payment to be prepaid. "Comparable Treasury ,rice" means, with respect to any extraordinary prepayment date for a particular 20_ Se� Mun Bond principal payment, the price of the Comparable Treasury Issue, as dete rmined by an investment banking firm or financial advisory firm ra r ° d ® the Bank G 1 «F AMBB /General Obligation Bonds, 20_ Series Loan Agreement - Exhibit A Page A - I: \Docs137420001 \Form Documents \Form of Loan Agreement.wpd 2 $ r EXHIBIT B 1 rfc z - Fl. v t ''''..";-472_'N7, K 5 AMBB /General , _ s Loan Agreement - Oblig E xhibit Bonds B Page B -1 I. \Dots \37420001 \ Doc uments \Form of Loan 20 AgreeSeriement.wpd 3\ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA AUTHORIZING THE CITY MANAGER TO ENTER INTO AMENDMENT NUMBER THREE WITH RISE ALASKA, LLC (RISE) FOR PROFESSIONAL PROJECT MANAGEMENT SERVICES THROUGH 100% DESIGN FOR THE NEW CO- LOCATED LIBRARY MUSEUM FACILITY, APPROPRIATING ADDITIONAL FUNDING NOT -TO- EXCEED FORTY EIGHT THOUSAND FORTY EIGHT DOLLARS ($48,048) WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional project management services for the library museum project; and WHEREAS, RISE earned the most points with the request for proposal grading criteria approved by the Seward City Council and was awarded the professional services agreement to perform project management services through the Schematic Design phase with Resolution 2009 -091; and WHEREAS, Council approved Resolution 2010 -22 Amendment #1 with RISE Alaska to develop and issue a request for proposal to select a construction firm to act as consultant to the owner in the development and design phase; and WHEREAS, Council approved Resolution 2010 -069 Amendment #2 authorizing RISE to serve as consultants through the design development phase (65% design); and WHEREAS, the project will move forward through Construction Documents Phase (100% Design) with RISE providing Project Management Services with Amendment #3 for an amount not to exceed forty eight thousand forty eight dollars ($48,048) to include facilitation of meetings, meeting minutes, review of alternate building systems, negotiation of the contractor's CMP, and other services as outlined in their original proposal and contract; and WHEREAS, an additional 10% contingency is being included in this Amendment #3 for a total amount not to exceed forty eight thousand forty eight dollars ($48,048); and WHEREAS, the current total contract amount with RISE is one hundred sixty thousand three hundred and fifty eight dollars ($160,358), including contingency; and WHEREAS, further Project Management Services for will come before the Council for contract approval and fund appropriations. LAC CITY OF SEWARD, ALASKA RESOLUTION 2010 -127 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into Amendment #3 with RISE Alaska, LLC in substantial form as attached hereto to provide project management services through construction document phase for a cost not -to- exceed forty eight thousand forty eight dollars ($48,048), including the 10% contingency, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 - 626X -5390. 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 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk, CMC (City Seal) y\ Council Agenda Statement of sets. 4 Meeting Date: December 13, 2010 '� Through: City Manager Phillip Oates q From: Library Museum Director Patricia Linville Agenda Item: Authorizing the City Manager to enter into Amendment Number Three with RISE Alaska, LLC for professional Project Management Services through 100% Design for the new co- located Library Museum Facility, appropriating additional funding not -to- exceed $48,048. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward, Seward Community Library Association and the Resurrection Bay Historical Society have been planning to co- locate the Community Library and the Seward Museum to a new facility. Co- location will create efficiencies of service and space as well as providing the amount of space needed to meet the existing and future needs of these organizations. On August 17, 2009 a request for proposals was issued soliciting for project management services. The project management services include assistance in selecting a design team, negotiating the design contract and overseeing the design team's work during the schematic design phase. Three proposals were submitted by the deadline, were judged responsive and reviewed by the selection team. RISE Alaska, LLC obtained the highest points and a contract was approved with Resolution 2009 -091. Council approved Resolution 2010 -22 Amendment #1 with RISE Alaska to develop and issue a request for proposal to select a construction firm to act as consultant to the owner in the development and design phase as part of the CM /GC project implementation. Council approved Resolution 2010 -069 Amendment #2 with RISE Alaska on July 26, 2010 which contracted RISE to serve as consultants through design development (65 %). The Library /Museum Project was awarded $4.7 Million dollars in the State's Capital budget and this funding allows the project to move forward with the necessary design development phases. RISE has submitted a proposal to continue as the Project Manager through Construction Documents Phase (100% Design) with Amendment #3 for an amount not to exceed $43,680. A 10% contingency has been added to bring the total to $48,048. Their proposed services include meeting facilitation and meeting minutes, review of alternate building systems, negotiation of contractor's CMP, and other services as outlined in their original proposal and contract. RISE Alaska's proposal was reviewed and approved by the Project Executive Committee per the Memorandum of Agreement between the City of Seward and the Seward Community Library Museum Building Committee. Further Project Management Services will return to the PEC for recommendation and to Council for contract approval and fund appropriations. INTENT: Approve a contract with RISE ALASKA, LLC for Construction Documents (100 %Design) Project Management Services in the amount of $48,048, including a 10% contingency, and obtain Council approval for the transfer of funds. ya 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. FISCAL NOTE: This action appropriates $48,048 including 10% contingency for the contract with RISE Alaska, LLC, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 -626X -5390. Approved by Finance Department: v 4— i ATTORNEY REVIEW: No. RECOMMENDATION: Approve Resolution 2010- X21 authorizing the City Manager to enter into Amendment Number Three with RISE Alaska, LLC for professional Project Management Services through 100% Design for the new co- located Library Museum Facility, appropriating additional funding not -to- exceed $48,048. L\1 RISE November 19, 2010 Christy Terry, Community Development Director City of Seward P.O. Box 167 Seward, AK 99664 RE: Amendment #3 to Contact C09 -091 Library Museum Project Management Dear Ms Terry, We request an amendment to the above referenced contract to extend Project Management Services through the Construction Documents phase of design. This Modification of $43,680 would increase the NTE fee $110,060, to change the total contract amount to $153,740. The scope of services will be to manage the design process for through the Construction Document phase of design, including, facilitation of meetings, writing meeting minutes, review of alternate building systems, negotiation of the contractor's GMP and as outlined in our original agreement. I have included 16 hours per for Judi Andrijanoff to support the project and help with writing monthly reports. The additional fees are detailed on the attached SCLM Fee Estimate. Sincerely, Roe Sturgulewski President RISE Alaska LLC 1-1\6S— Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AMENDMENT NUMBER TWO WITH ECl/HYER INC. FOR PROFESSIONAL CONSTRUCTION DOCUMENTS BASIC SERVICES FOR THE NEW CO- LOCATED LIBRARY MUSEUM FACILITY, AND APPROPRIATING ADDITIONAL FUNDING NOT -TO- EXCEED FOUR HUNDRED TWO THOUSAND FIVE HUNDRED NINETY ONE DOLLARS ($402,591) WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional design services for the library museum replacement project; and WHEREAS, following the review and evaluation, a short list of proposals, which most nearly met the requirements and received the most points under the selection criteria approved by Council, was developed in accordance with SCC 6.10.335; and WHEREAS, upon receiving the clarifying information, ECl/Hyer Inc. received the most points and was the highest ranked of the short- listed proposers; and WHEREAS, ECI /Hyer has submitted a fee proposal to continue their design services through construction documents for three hundred sixty five thousand nine hundred and ninety two dollars ($365,992); and WHEREAS, the construction document deliverables will include (but are not limited to): drawings and specifications setting forth in detail the quality levels of materials and systems and other requirements for the construction of the work; and WHEREAS, construction document deliverables also include shop drawings, product data, samples and other similar submittals which the architect shall review for conformance with the design documents; and WHEREAS, an additional 10% contingency is being included in this Amendment #2 for a total amount not to exceed thirty six thousand five hundred ninety nine dollars ($36,599); and WHEREAS, the current total contract amount with ECI /Hyer is nine hundred sixteen thousand three hundred seventy five dollars ($916,375) including contingency; and WHEREAS, future design and construction management service requests will come to the PEC for recommendation and to Council for contract approval and fund appropriations. L </ CITY OF SEWARD, ALASKA RESOLUTION 2010 -128 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into Amendment #2 with ECI /Hyer Inc. in substantial form as attached hereto to provide design services through construction document for a cost not -to- exceed four hundred and two thousand five hundred ninety one dollars ($402,591) including the 10% contingency, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 -626X -5390. 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 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Jean Lewis City Clerk, CMC (City Seal) 'AL? Council Agenda Statement e {of set Meeting Date: December 13, 2013, Through: City Manager Phillip Oates * ;arse From: Library Museum Director Patricia Linville Agenda Item: ECI /Hyer Inc. professional construction document basic services for the new co- located Library Museum Facility BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward, Seward Community Library Association and the Resurrection Bay Historical Society have been planning to co- locate the Community Library and the Seward Museum to a new facility. Co- location will create efficiencies of service and space as well as providing the amount of space needed to meet the existing and future needs of these organizations. In accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional design services for the library museum replacement project. Following the review and evaluation, a short list of proposals, which most nearly met the requirements and received the most points under the selection criteria approved by Council, was developed in accordance with SCC 6.10.335. Upon receiving the clarifying information, ECI /Hyer Inc. received the most points and was the highest ranked of the short- listed proposers. ECI /Hyer has submitted a fee proposal to continue their design services through construction documents for three hundred sixty five thousand and nine hundred and ninety two dollars ($365,992) The construction document deliverables from ECI /Hyer will include (but are not limited to): drawings and specifications setting forth in detail the quality levels of materials and systems and other requirements for the construction of the work. The architect will provide additional information, including shop drawings, product data, samples and other similar submittals, which the architect shall review for conformance with the design documents. ECI /Hyer's proposal was reviewed and approved by the Project Executive Committee per the Memorandum of Agreement between the City of Seward and the Seward Community Library Museum Building Committee. Future design and construction management service request will come to the PEC for recommendation and to Council for contract approval and fund appropriations. INTENT: Approve a contract with ECI /Hyer Inc. for Construction document Services in the amount of four hundred two thousand five hundred and ninety one dollars ($402,591) including a 10% contingency, and obtain Council approval for the transfer of funds. 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. FISCAL NOTE: This action proposes to utilize funds accepted from the State of Alaska for the purpose of construction document services. This action appropriates for the contract with ECl/Hyer, Inc. for $402,591. The current total contract amount with ECI /Hyer is nine hundred sixteen thousand three hundred seventy five dollars ($916,375) including contingency. Approved by Finance Department: da...e .a /di0 ATTORNEY REVIEW: No. RECOMMENDATION: Approve Resolution 2010- 1'� authorizing the City Manager to enter into Amendment Number Two with ECI /Hyer Inc. for professional construction document basic services for the new co- located Library Museum Facility, and appropriating additional funding not -to- exceed four hundred two thousand five hundred and ninety one dollars ($402,591) lib Professional Services Agreement with ECl/Hyer, Inc. for Professional Schematic Design Services This AGREEMENT, made and entered into this 26 day of October, 2009 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and ECl/Hyer Inc., a corporation authorized to do business in Alaska, with offices located at 101 W. Benson Blvd., Suite 306, Anchorage, Alaska, 99503, hereinafter referred to as the "Architect." WITNESSED WHEREAS, the City of Seward wishes to enter into a contract with an independent Architect to provide Professional Schematic Design Services for the Seward Library Museum Replacement Project in Seward, Alaska; and WHEREAS, in response to a request for proposals, ECI /Hyer submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit A — ECI /Hyer, Inc. proposal dated 9/28/09 Exhibit B — City's request for proposals dated 8/31/09 and addenda 1 -5 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall all mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean City Manager Phillip Oates, and include any successor or authorized representative. 1.5 "Project" shall mean the schematic design services for the library museum replacement project in Seward, Alaska, as further described in the City's request for proposals issued August 31, 2009. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Pa ^= 1 of 8 - • Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. The Architect will provide schematic design services for a lump sum basis at a fixed fee of $123,570.00. If utilized, services of Library & Museum Planner Thomas Hacker are offered for an additional fee of $24,000. Total Cost through Schematic Design, including the optional services of Thomas Hacker, is for a price Not To Exceed $147,570. 4.0 SCOPE OF SERVICES. The City and Architect have agreed upon a scope of work described in the Architect's proposal, Exhibit A, to provide schematic design services based on approved standards and instructions as specifically described in the City's request for proposals, Exhibit B. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all work described herein shall be as follows: February 1, 2010. 6.0 PERSONNEL /ORGANIZATION 6.1 Key Personnel. Work and services provided by the Architect will be performed by: Principal in Charge Teny Hyer, Principal/Lead Designer Brian Meissner, and Project Manager /Architect Jae Shin. Additionally, Library & Museum Planner Thomas Hacker may be utilized by the City. 6.2 Changes in Key Personnel. The Architect shall give the City reasonable advance notice of any necessary substitution or change of key personnel and shall submit justification therefore in sufficient detail to permit the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. 7.0 STANDARD OF PERFORMANCE. The Architect agrees to provide all required professional services to complete the project and any additions or changes thereto. The Architect accepts the relationship of trust and confidence established between it and the City by this Agreement. The Architect covenants with the City to furnish its skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Architect shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder required professional judgment and skill. In those cases, the Architect agrees to adhere to the - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009- -Page 2 of 8- 50 standards of the applicable profession. 8.0 COMPLIANCE WITH LAWS. The Architect shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Architect, the City, or the service which may be in effect now or during performance of the services. 9.0 INDEMINITY. The Architect shall indemnify, defend, and hold harmless the City from and against any claim of, or liability for, negligent acts, errors, and omissions of the Architect under this agreement, including attorney fees and costs. The consultant is not required to indemnify, defend, or hold harmless the City for a claim of, or liability for, the independent negligent acts, errors, and omissions of the City. If there is a claim of, or liability for, a joint negligent act, error, or omission of the Architect and the City, the indemnification, defense, and hold harmless obligation of the Architect, and liability of the parties, shall be apportioned on a comparative fault basis. In this provision, "Architect" and "City" include the employees, agents, and contractors who are directly responsible, respectively, to each. In this provision, "independent negligent acts, errors, and omissions of the City" means negligence other than in the City's selection, administration, monitoring, or controlling of the Architect, or in approving or accepting the Architect's work or the Architect's subcontractors. 10.0 INSURANCE. The Architect understands that no City insurance coverage, including Workers' Compensation, are extended to the Architect while completing the terms of this Agreement. The Architect shall carry adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general public liability, automobile, professional liability including errors and omissions, and property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Architect shall not commence work under this Agreement or any work on any phase of the Project until the Architect provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is an additional insured thereunder as respects liability arising out of or from the work performed by Architect of City of Seward. b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies specified in the certificate. c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials. d. The insurance coverage is primary to any comparable liability insurance carried by the City of Seward. - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 3 of 8- Upon request, Architect shall permit the City to examine any of the insurance policies specified herein. Any deductibles or exclusions in coverage will be assumed by the Architect, for account of, and at the sole risk of the Architect. 11.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 12.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Architect for services hereunder include full compensation for all work products and other materials produced by the Architect and its sub - contractors pertaining to this Agreement. The originals of all material prepared or developed by the Architect or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Architect and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Architect included in this project will remain property of the Architect. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 13.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Architect agrees to defend, indemnify, and save the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Architect or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Architect, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 14.0 NONWAIVER. No failure of the City or Architect to insist upon the strict performance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every tenn, right, or remedy of this Agreement shall continue in full force and effect. 15.0 SAFETY/PERFORMANCE. The Architect shall perform the work in a safe and workmanlike manner. The Architect shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 4 of 8- 16.0 SUSPENSION OR TERMINATION. 16.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perfonn in accordance with its terms. If the City terminates this Agreement it will pay the Architect a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Architect and the City, offset by any amounts owed to the City. However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 16.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Architect will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Architect can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Architect without further compensation. 16.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Architect shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the tunes, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 17.0 EQUAL EMPLOYMENT OPPORTUNITY. The Architect shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, martial status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Architect shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 5 of 8- 18.0 NO ASSIGNMENT OR DELEGATION. The Architect may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 19.0 INDEPENDENT ARCHITECT. The Architect shall be an independent Architect in the performance of the work under this Agreement, and shall not be an employee or agent of the City. 20.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Architect shall pay all federal, state and local taxes incurred by the Architect and shall require their payment by any other persons in the performance of this Agreement. 21.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Architect. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 22.0 STATE OF ALASKA AND CITY OF SEWARD BUSINESS LICENSE. The Architect shall not commence work under this Agreement or any work on any phase of the Project until the Architect provides the City with copies of their State of Alaska and City of Seward business licenses. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Architect. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF AGREEMENT. The Architect shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 25.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 26.0 CHANGES IN SCOPE OF WORK. 26.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Architect do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and/or omissions by the Architect, will be done at the sole expense of the Architect. 26.2 Changes in Scope of Work. The City or its representative may, at any time, by a - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009- -Page 6 of 8- written Change Order delivered to the Architect, make changes to the scope of work, or authorize additional work outside the scope of work. 26.3 Compensation to the Architect. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Architect for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Architect of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0. LIMITATION OF FUNDS. 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Architect to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 7 of 8- 5 ' sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward Community Development Director Christy Terry PO Box 167 Seward, Alaska 99664 -0167 IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward ECI /flyer, Inc. /L2 By: Phillip Oates By: Ten . Hyer Title: City Managg Title: Principal Date: lrO 1'Za7 f ��'.�O Date: j • • o ATTEST: • fi r L ` & G-e. Wan Lewis, CMC L.-City Clerk aiCft� 41/2":44 y.' b 4' .,;;" (city seal) a °c •nay` S F AyE',y Y akJ:`,,° w a hN.a:GS4 d q2 Z" y ° . Hi ° ° i r , n � ° 4 ,2 t 1 °�� , t y, r �` e ' . ° . � i ° • - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2d09- -Page 8 r ,f R- 56 Document G802 - 2007 Amendment to the Professional Services Agreement Amendment Number: 002 TO: Christy Terry (Owner or Owner's Representative) In'accordance with the Agreement dated: October 26, 2009 BETWEEN the Owner: (Name and address) City of Seward 234 Fourth Ave. Petro Plaza Bldg. Seward, AK 99664 and the Architect: (Name and address) ECI Hyer, Inc. 101 W. Benson Blvd., Suite 306 Anchorage, AK 99503 for the Project: (Name and address) Seward City Library Museum Seward, Alaska Authorization is requested ® to proceed with Additional Services. ❑ to incur additional Reimbursable Expenses. As follows: ECI /Hyer Inc. is authorized to proceed with Construction Documents Basic Services and CM /GC Coordination & Bid Phase Services in accordance with the Agreement and further described in the ECI /Hyer Inc. letter of July 22, 2010. The following, adjustments shall be made to compensation and time. (Insert provisions in accordance with the Agreement, or as otherwise agreed by the parties.) Compensation: Construction Documents Basic Services: Fixed Price $365,992 (three hundred sixty -five thousand nine hundred ninety -two dollars) CM /GC Coordination and Bid Phase Services: Time and Materials Allowance $41.242 (forty-one thousand two hundred forty =two dollars) Total Adjustment to Compensation Add: $407,234 (four hundred seven thousand two hundred thirty -four dollars) Time: Completion of Construction Documents by March 31, 2011 AIA Document G802'"' — 2007 (formerly G606 "" — 2000). Copyright © 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion ofiit, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:08:30 on 11/05/2010 1546466275_1 which expires on 08/20/2011, and is not for resale. User Notes: (841703987) E SUBMITTED BY: AGREED TO: (Signature) U (Signature) Terry K. Hyer, Principal (Printed name and title) (Printed name and title) (Date) (Date) • AIA Document 0802TM - 2007 (formerly G606T" — 2000). Copyright © 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, 2 or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:08:30 on 11/05/2010 under Order No.1546466275_1 which expires on 08/20/2011, and is not for resale. User Notes: _ (841703987) Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011 -004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A RASMUSON TIER II GRANT MATCHING GRANT IN THE AMOUNT OF $500,000 FOR CONSTRUCTION OF THE LIBRARY/MUSEUM WHEREAS, the City of Seward and the Seward Community Library Building Committee, with the continued support of the Council, have been working to raise funds to build a new facility to house the library and the museum; and WHEREAS, on July 12, 2010 Council passed Resolution 2010 -070 directing city staff to submit a full proposal to Rasmuson Foundation; and WHEREAS, on December 29, 2010 the City Manager received official notification that Rasmuson had awarded a Tier II matching grant of $500,000 to the City of Seward for construction of the library museum; and WHEREAS, the grant terms state Rasmuson foundation will match each dollar of new funds received for the project between November 16, 2010 and the grant end date and funds will be paid out after December 31, 2011; and WHEREAS, staff has confirmed with Rasmuson that the December 2010 award of $500,000 of NEH funds are eligible to match the Foundation funds. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager and one other official are authorized to sign the grant agreement for Rasmuson Foundation Tier II Grant #5323 accepting $500000 in 1:1 matching funds for the construction of the library museum. Section 2. Rasmuson Funds will be matched dollar for dollar by the NEH Challenge Grant funds committed on December 23, 2010 Section 3. This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2011 -004 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of January 2011. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) L)0 Agenda Statement Meeting Date: January 24, 2011 Through: Phillip Oates, City Manager ,/'" IP. °f $ 8, 9 From: Patricia Linville, Library Museum Director ; =4 Agenda Item: Rasmuson Tier II Grant BACKGROUND & JUSTIFICATION: The City of Seward and the Seward Community Library Building Committee, with the continued support of the Council, have been working to raise funds to build a new facility to house the library and the museum. Milestones in the project progress include City purchase of a designated site, completion of 65% design, hiring of project and construction management, passing a local general obligation bond in October 2009, receiving an appropriation of $4.7M for construction from the State of Alaska on April 3, 2010 and the award of an National Endowment for the Humanities (NEH) Challenge Grant in December, 2010. In November of 2009 the City of Seward submitted a Letter of Inquiry to Rasmuson Foundation, a prerequisite to submitting a full proposal for Foundation's Tier 2 Grant Program. On May 21, 2010 the City of Seward received an invitation to submit a full proposal. On July 12, 2010 Council passed Resolution 2010 -070 directing city staff to submit a full proposal. On December 29, 2010 the city manager received official notification that Rasmuson had awarded a Tier II matching grant of $500,000 to the City of Seward for construction of the library museum. The award letter states, "Rasmuson foundation will match each dollar of new funds received for the project between November 16, 2010 and the grant end date. Funds will be paid out after December 31, 2011." On December 23, 2010 the City of Seward was notified of another award of $500,000 from the National Endowment for the Humanities. Staff has confirmed with Rasmuson that the NEH funds are eligible to match the Foundation funds. Therefore, the Rasmuson match has been identified and the funds are secured. 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. INTENT: This resolution requests that Council direct the City Manager and one other official to acknowledge receipt of the Rasmuson Tier II grant #5323, a 1:1 matching grant for $500,000 and agreement of its terms by submitting a signed form by January 31, 2011. ATTORNEY REVIEW: No FISCAL NOTE: The $500,000 awarded by Rasmuson will be matched by the funds committed to the project by the National Endowment of the Humanities. Rasmuson funds will be available after December 31, 2011. Approved by Finance Department RECOMMENDATION: Council approve Resolution 2011 - accepting the terms of the Rasmuson Tier II Grant #5323 and directing the City Manager and one other official to sign the grant agreement by January 31, 2011. (0\ NATIONAL ENDOWMENT FOR THE Humanities �CIL December 23, 2010 Patricia Linville Library Director City of Seward Box 2389, 238 5 Avenue Seward, AK 99664 -2389 Dear Ms. Linville: In response to your application (CH- 50802) to the National Endowment for the Humanities Challenge Grants Program, I am pleased to offer the City of Seward an amount up to $500,000. Your application was considered carefully during the NEH review process, which includes peer review along with deliberation by the National Council on the Humanities and the Office of the Chairman. This offer is subject to the following conditions: 1) Before grant funds will be released to your organization, an NEH Organizational Survey must be completed and returned to the Office of Grant Management via fax or e-mail. The survey is located at http: / /www.neh.gov /manage /OrganizationalSurvev.pdf. 2) A revised budget must be submitted for Endowment approval. The revised budget should reflect how all challenge grant funds -- federal and nonfederal- -will be expended. 3) The first $50,000 of this offer will be available until July 31, 2011. The next $150,000 of the offer will be available after October 1, 2011 until July 31, 2012. The next $200,000 of the offer will be available after October 1, 2012 until July 31, 2013. The final $100,000 of the offer will be available after October 1, 2013 until July 31, 2014. All offers are conditional upon availability of sufficient funds allocated for matching purposes in the Challenge Grants Program. 4) To receive the full challenge grant award, you must raise at least $1,500,000 in new nonfederal contributions. Federal funds are released in the first three years when completely matched according to the required amount. The fourth year's installment allows the release of federal funds when matched one -to -one, with the remaining parts of the match to be raised in the final year. 5) To receive the respective offers, you must certify receipt of $150,000 in gifts by July 31, 2011, receipt of an additional $450,000 by July 31, 2012, receipt of an additional $600,000 by July 31, 2013, and receipt of an additional $100,000 by July 31, 2014. By July 31, 2015, you must certify an additional $200,000 to bring the total of certified contributions to three times the total federal offer. -2- The following chart summarizes the contributions you must certify to receive all annual offers in full and on schedule: (all figures in thousands) Fund - Raising Start to 8/1/2011 to 8/1/2012 to 8/1/2013 to 8/1/2014 to Periods 7/31/2011 7/31/2012 7/31/2013 7/31/2014 7/31/2015 TOTALS Year #1 Year #2 Year #3 Year #4 Year #5 NEH FUNDS (federal $50 $150 $200 $100 N/A $500 offered) Nonfederal funds to be $150 $450 $600 $100 $200 $1,500 raised TOTAL GRANT $200 $600 $800 $200 $200 $2,000 FUNDS (federal plus nonfederal) Especially in the first year, grantees are strongly encouraged to certify all eligible gifts as soon as possible so that, should additional federal matching funds become available, the Endowment would be able to release funds ahead of schedule. 6) Any part of an annual offer for which insufficient contributions have been certified will be forfeited. 7) All donors of restricted gifts must stipulate or otherwise know that their gifts are to be used for the same purpose as described in the approved challenge grant application. Three categories of donations -- in -kind gifts, earned income, and unrestricted gifts -- are each limited in amount to the federal portion of the challenge grant. Furthermore, the total of these three categories of gifts, added together, may not exceed the federal portion of the challenge grant. 8) The National Endowment for the Humanities should be recognized, explicitly and prominently, as a funder of the humanities activities undertaken and strengthened through the challenge grant. All materials publicizing or resulting from grant activities must recognize the National Endowment for the Humanities as a funder of the humanities activities undertaken and strengthened through the challenge grant. Please refer to the "Acknowledgement Guidelines" in the Administration of NEH Challenge Grants brochure, located at httn: / /www.neh.gov /manage /challenge admin.html. 13 -3- The starting date for this grant is December 1, 2008 and the grant termination date is July 31, 2015. Federal funds may not be released for renovation and construction projects affecting buildings or properties listed or eligible for listing in the National Register of Historic Places until such projects have been reviewed by the Advisory Council on Historic Preservation. Construction and renovation projects may also be subject to the provisions of the Davis -Bacon Act. Under separate correspondence, you will receive information on the steps that your institution needs to take to comply with these requirements. This award is subject to the Administration of NEH Challenge Grants (October 2010), the General Terms and Conditions for Awards and its Addendum (as limited by Appendix 4 of the Administration of NEH Challenge Grants), the audit requirements of Office of Management and Budget Circular A -133, and the Program- Specific Audit Guide of a NEH Challenge Grant. Forms and publications referenced in this offer letter are available on the NEH web site. Go to www.neh.gov and click on "Grant Management." This letter does not constitute an award but only an offer of support, subject to the conditions described above. Should you have any questions concerning this offer, please feel free to contact either Anne Lopez- Buitrago at 202 - 606 -8575 (e -mail: alopez- buitrago@,neh.gov) or the program officer, Brandon Johnson at 202 - 606 -8309 (e -mail: biohnson @neh.gov). Sincerely, James A. Leach Chairman b�1 Patricia Linville From: Jayson Smart <jsmart @rasmuson.org> Sent: Wednesday, December 29, 2010 11:07 AM To: Patricia Linville Cc: Cassandra Stalzer Subject: RE: Questions and Confirmation Okay Patty. I'm copying Cassandra as our Communications Director to confirm any input she has on use of our logo for things. Otherwise, I think you are good to include NEH as match for our grant. Official paperwork will get to you soon. Jayson From: Patricia Linville [ mailto :plinville @cityofseward.net] Sent: Wednesday, December 29, 2010 10:42 AM To: Jayson Smart Subject: RE: Questions and Confirmation Jayson, Unless you have already sent logo info please disregard below. I found one from an older grant. Patty Patricia Linville, Library Museum Director Seward Community Library Museum 907 - 224 -4008 From: Patricia Linville Sent: Wednesday, December 29, 2010 10:35 AM To: 'Jayson Smart' Subject: RE: Questions and Confirmation Yes we received the NEH notification mid - December. On another note, can we use the Rasmuson logo in our newsletter etc? If so where can I download it? Thanks, Patty Patricia Linville, Library Museum Director Seward Community Library Museum 907- 224 -4008 From: Jayson Smart [mailto:jsmart @rasmuson.org] Sent: Wednesday, December 29, 2010 8:12 AM To: Patricia Linville Subject: RE: Questions and Confirmation 1 b5 n . R A S M U S O N December 29, 2010 FOUNDATION 301 W. Northern Lights Blvd. Mr. Phillip Oates Suite 400 Anchorage, AE. 99503 City Manager City of Seward - Seward Community Library 907.297.2700 ,,., P.O. Box 2389 907.29'.2770 , lx Seward, AK 99664 S tort- re 1; .-L.;sk.a - rasmusonfdn @rasmuson.org email Dea MAl s: www.rasmuson.org It is my great pleasure to inform you that City of Seward - Seward Community Library has been awarded a $500,000, 1:1 matching grant for the construction of the new library/museum facility. Rasmuson Foundation will match each dollar of new funds received for the project between November 16, 2010 and the grant end date. Funds will be paid out after December 31, 2011. We would appreciate it if two officials from your organization would acknowledge receipt of this grant and agreement with its terms by January 31, 2011. We have provided a grant agreement for this purpose. Payment request and reporting forms may be found on the Foundation's web site, www.rasmuson.orq. Please refer to grant number 5323 in all correspondence regarding this award. Our Directors are interested in keeping in touch with your activities BOARD of during the course of the year. If you have a special event, receive DIRECTORS recognition for your services, or have a significant accomplishment, Edward B. Rasmuson we would like to hear about it. You may wish to include us on your chairman Morgan Christen regular mailing list. Also, if any key people involved in the project change, please notify us in writing. Jeff Conk Douglas Eby Congratulations on your award. Adam Gibbons Lile R. Gibbons Best tegards, Anthony Mallott Roberta Quintavell ' Cathryn Rasmuson Diane Kaplan Judy Rasmuson President Mary Louise Rasmuson Natasha von Imhof Enclosure PRESIDENT Diane Kaplan RF grant number 5323 bb RASMUSON F O U N D A T I O N GRANT AGREEMENT Grantee: City of Seward - Seward Community Library Total Award Amount. $500,000.00 Project Tit /e: Construction of a multi -use facility for the library and museum. Date Awarded: 11/16/2010 Grant Number. 5323 Grant Type: Tier 2 Award Detail and Conditions: A $500,000 1:1 matching grant for the construction of the new library/museum facility. Rasmuson Foundation will match each dollar of new funds received for the project between November 16, 2010 and the grant end date. Funds will be paid out after December 31, 2011. Program Staff: Jayson Smart By signing this document, the grantee agrees to accept any and all conditions of this grant award and to comply with the requirements of the Rasmuson Foundation. Please provide signatures from two officials who are authorized to sign contracts on behalf of the organization, i.e., the Executive Director and Chair of the Board of Directors; the Mayor and City Manager; IRA Council President and Tribal Administrator; or Chancellor and Dean or Director. By: Typed or printed Legal Name of Organization Signature Date Typed or printed Name and Title Signature Date Typed or printed Name and Title (Please sign this Agreement, initial each page where indicated, and return it with a suggested schedule of payments to the Foundation by the date indicated in the award letter. Retain a copy for your records.) City of Seward - Seward Community Library RF grant number 5323 Initial Page 1 of 5 Rev. 9/09 Rasmuson Foundation Grant Award and Conditions Grant Number The Grant Number for this award is 5323. Please refer to this number in all correspondence related to this award. Grant Payments Grant payments require receipt of a Payment Request form from the grantee a minimum of 90 days prior to payment. Grant payments are to coincide with the actual need for project funds. Any challenge or contingencies must be met prior to payment. Most grants, and especially large grants, are paid out in several installments based upon a payment schedule submitted by the grantee. If needed, disbursement of the grant may be in a single payment. Approved payment requests from all grantee's are batched and processed once a month; checks are mailed at the end of each month. Timely reporting is required for payment. Payments will not be made if reports for any grant from the Rasmuson Foundation to the Grantee are overdue and have not been received and approved. Payment Schedule Please provide a proposed schedule of payments for the grant award with this signed grant agreement. Challenge or Contingencies A grant with a challenge component or contingency(ies) will be paid only when those conditions have been met. The form titled Certification of Meeting Grant Conditions is to be used to explain how the conditions were met. Contingencies and challenges must be met by the grant end date. Expenditure of Funds This grant is made based upon a specific proposal that contains a project budget. It is expected that the entire amount of this grant will be applied to the budget and not used for any other purposes. Should it become advantageous to the grantee to slightly modify the project and/or make any changes to the project budget or timeframe, permission to do so must be requested in accordance with this Grant Agreement (see Budget Reallocation or Project Revision). Approval by the Foundation in writing must be received prior to making any revisions or incurring any expenses. If, at the end of the grant period, a reallocation of unspent funds or an extension has not been requested, the balance of the grant funds must be returned to the Foundation. Grant Duration As agreed during the grant proposal review process, the project has the following begin and end dates: Project begin date: 11/16/2010 Project end date: 11/30/2012 City of Seward - Seward Community Library RF grant number 5323 Initial Page 2 of 5 Rev. 9/09 blb Reporting Requirements For grants greater than $25,000: The Foundation expects to be kept fully informed of progress on this project. To this end, each grantee is required to submit progress reports every six months. Your progress reports are due on the following schedule: Reporting Period Due Date 11/16/2010 — 4/30/2011 5/31/2011 5/1/2011 — 10/31/2011 11/30/2011 11/1/2011 — 4/30/2012 5/31/2012 A final report is due within 30 days after the grant end date. • The Foundation form titled Progress Report is to be submitted every six months with or without a grant Payment Request until the end of the project. If all Rasmuson funds are expended, but the project is not complete, the organization will continue to send progress reports until the project is complete. • The Foundation form titled Final Report is to be submitted within 30 days after the grant end date. • If submitting project images with your progress or final report, you are affirmatively representing that these images are your organization's legal property to distribute and you are granting the Rasmuson Foundation permission to use these images for publicity use only. Images include digital documentation such as photos, videos, audio files, etc. (REQUIRE INITIAL) Extension Extensions may be granted by the Foundation upon request of the grantee at the sole discretion of the Foundation. An extension assumes that the grant award will be fully expended for the purpose described in the Grant Agreement, but more time is needed to complete the project. To extend the end date of the grant award, send a letter clearly stating the following: • Describe why the project will not be completed during the grant period. • Identify the proposed new end -date for the project. • Outline plans to complete the project and a timeline of activities to be undertaken during the extension period. Budget Reallocation or Project Revision Grant awards are made based upon the project budget and description as presented in the application. Grant funds may only be used for the specific purpose as stated in the Grant Agreement. Grant award reallocation or revision may be requested if the revision is within the scope of the award. Requests to substantially revise the scope of an award for activities not originally proposed, or inconsistent with the award's intent, are not permitted. If a reallocation is necessary to complete the project intent, it must be City of Seward - Seward Community Library RF grant number 5323 Initial Page 3 of 5 Rev. 9/09 bC approved before funds are spent. The Foundation will not retroactively "back- fund," so these expenses must not yet have been incurred. Budget revisions and grant extensions are not granted automatically. They are reviewed for both financial and programmatic propriety. To request a budget reallocation or project revision, submit a Reallocation Request Form, with an attached narrative detailing how reallocated funds will enhance the project. Unspent Funds It is the policy of the Foundation that unspent funds are returned with the final report. A request to use unspent grant funds may be submitted if there is a balance of funds after all components of the project plan have been accomplished. Requests to use unspent grant funds for project expenses not initially proposed, yet consistent with the award intent, may be permitted, but only if approval is received in advance. Budget revisions may not include pre -award expenses, or expenses incurred prior to approval. To request use of unspent funds, submit a Reallocation Request Form, with an attached narrative detailing how reallocated funds will enhance the project. Certification of IRS Status By signing this document, the grantee certifies that it is a tax- exempt agency under Section 501 (c) (3) of the Internal Revenue Code and is classified as not a private foundation under Section 509 (a) (1) or 509 (a) (2) of the Code or, in selected cases, a unit of government, or an officially recognized tribal organization if the project has a broad community impact. If the organization is required to file for 990 or any version thereof, the grantee certifies that these have been filed for the last three tax years (the most recent tax year may be on an unexpired extension). Any change in IRS tax- exempt status must be promptly reported to the Foundation. Change in Key Personnel Please notify your Program Officer in writing if the officials who sign this document leave office or position, and provide the contact information for the replacements. Any change in key personnel must be reported to the Foundation. Termination of Award Failure to fulfill the terms of this agreement may result in termination of the grant. If the grant is terminated, the Foundation may ask for return of grant funds. Also, the organization may be ineligible to apply for future funding from the Rasmuson Foundation. Forms All forms mentioned in this document are available on the Foundation's web site at www.rasmuson.ora under "resources/forms /reporting and payment request forms." Please use the most current version of the forms from the website, as they may have changed. If you do not have access to the Internet, please contact us for the forms. City of Seward - Seward Community Library RF grant number 5323 Initial Page 4 of 5 Rev. 9/09 If you have questions, please call or email: Program Officer: Jayson Smart Phone: (907) 297 -2882, or toll free in Alaska (988) 366 -2700 Email: jsmart@ rasmuson.org City of Seward - Seward Community Library RF grant number 5323 Initial Page 5 of 5 Rev. 9109 � Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011 -005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO EXTEND THE MAINTENANCE AND OPERATING AGREEMENT WITH SEWARD SHIP'S DRYDOCK, INC. THROUGH AUGUST 31, 2011 WHEREAS, the current Maintenance and Operating Agreement between Seward Ship's Drydock and the City of Seward for the Shiplift Facility is set to expire January 31 2011; and WHEREAS, on June 22, 2009, the City Council adopted Resolution No. 2009 -049 authorizing the City Manager to enter into an agreement for the Renewal of Term of the Maintenance and Operating Agreement containing a temporary extension; and WHEREAS, the City has allowed for additional time for Seward Ship's Drydock to apply the protective coating of the pipe piling and the cofferdam cells in the splash zone as outlined in Exhibit A of the Agreement describing deferred maintenance obligations; and WHEREAS, the City has contracted with a NACE certified inspector to inspect the protective coating and has found that the coating is not complete, therefore the City will not grant full lease credits until the coating is complete; and WHEREAS, the City and Seward Ship's Drydock have not completed a thorough review of the Maintenance & Operating Agreement to complete revisions and updates to the terms outlined in the Agreement; and WHEREAS, additional time is sought by both parties to evaluate and update the language in the Maintenance & Operating Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized and directed to sign, on behalf of the City of Seward, the Maintenance and Operating Agreement with the Seward Ship's Drydock, Inc. for a period from January 31, 2011 to August 31, 2011 in substantially the form presented at this meeting. Section 2. This resolution shall take effect immediately after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of January, 2011. Council Agenda Statement Meeting Date: January 24, 2011 of sEtt, ' a To: Phillip Oates, City Manager, ,7 From: Kari Anderson, Harbormaster Agenda Item: Extending the Maintenance & Operating Agreement with Seward Ship's Drydock through August 31, 2011 BACKGROUND & JUSTIFICATION: The City of Seward has long pursued the development of the Seward Marine Industrial Center, and has expended over $40 million in construction of improvements to the area, including a Syncrolift Shiplift System, Ship Transfer System, and related rails, dock, and breakwater. An initial agreement was signed between the City and the Operator (Seward Ship's Drydock, Inc.) on April 25, 1995 relating to the Shiplift Premises regarding Maintenance and Operating standards. A second Maintenance and Operating Agreement was signed again on March 30, 2000, and several agreements were signed to continue this agreement in following years. This 7` agreement to extend the Maintenance and Operating agreement is set to expire January 31, 2011. On June 1, 2009 the Seward City Council went into Executive Session again to discuss possible litigation with Seward Ship's Drydock. Council announced that they had given direction to the City Manager on how to proceed with Seward Ship's Drydock in regards to their Maintenance and Operating Agreement. The City Manager has discussed the status of the splash zone coating on the piling and the cofferdam cells and the need for this area to be coated. The coating was applied by Seward Ship's Drydock and the City contracted with a NACE- certified coatings inspector to evaluate the application and condition of the coatings during September 2010. This report is attached. The coating of the splash -zone on the sheet piling is not complete, and at a minimum the coating must extend to mean low water. Full lease credits will not be granted for the splash zone coating until it is complete. This eighth extension to the maintenance and operating agreement provides the City time to negotiate a new agreement, rather than extending the existing document and piecing together revisions through each separate extension. If the City and Seward Ship's Drydock cannot agree on revisions and updates to this document, the Maintenance and Operating Agreement will expire on August 31, 2011. Updates to the Agreement include defining the term managed parcel (with the 2002 re -plat and current lease language), eliminating references to deferred maintenance if it is deemed completed, and defining continuing maintenance. If the Operating Agreement is not extended, the City would be faced with operating the Shiplift facilities on its own or shutting it down until a new operator is in place. INTENT: To approve the City Manager to sign the eighth extension to the Maintenance & Operating Agreement with Seward Ships DryDock. 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 or Other Plans or Policies: 13 Yes (List Below) No 1. Comprehensive Plan Economic Development... 2. Strategic Plan Economic Base... FISCAL NOTE: Section 3.06 of the 2000 Maintenance and Operating Agreement states "Prior to the beginning of each Fiscal Year, Operator shall prepare and file with the City an operating plan for the ensuing Fiscal Year. The operating plan shall include an estimate of revenues and expenses and a schedule ofrepairs and maintenance and Deferred Maintenance to be performed during the Fiscal Year." Section 3.08 of the 2000 Maintenance and Operating Agreement states "With each annual operating plan submitted to City, Operator shall propose rates and charges for use ofthe Shiplift Facility. Such rates and charges shall not discriminate among users of a class of service or among different classes of service. Rates and charges do not discriminate among classes of service if they are reasonably related to the cost of providing each class of service, allocated according to Generally Accepted Accounting Principles. City shall adopt rates and charges proposed by Operator that conform to the standards in this section." No rates or charges have been proposed by the Operator. Approved by Finance Department: J i #i i _ ATTORNEY REVIEW: Yes No X RECOMMENDATION: City Council approve Resolution 2011 -005 authorizing the City Manager to sign the Eighth Amendment to the Maintenance and Operating Agreement with Seward Ship's Drydock. EIGHTH AGREEMENT TO EXTEND THE TERM OF MAINTENANCE AND OPERATING AGREEMENT WITH SEWARD SHIP'S DRYDOCK The Maintenance and Operating Agreement effective March 30, 2000, as amended October 26, 2001 (the "Agreement ") was entered into between the City of Seward, Alaska, an Alaska municipal corporation ( "City ") whose address is P.O. Box 167, Seward, Alaska 99664 and Seward Ship's Drydock, Inc. ( "Operator ") whose address is P.O. Box 944, Seward, Alaska 99664. WHEREAS, the Operator has been maintaining and operating the City's shiplift facility since 1995, consisting generally of a Syncrolift Shiplift System, Ship Transfer System, dock, and related rail systems (the "Shiplift Facility "); and WHEREAS, the Operator and the City have entered into a Lease Agreement ( "Lease "), to operate a vessel repair and construction facility on land adjacent to the shiplift facility; and WHEREAS, the operator has completed the coating application to pipe pile and 54 cofferdam cells but agrees that some additional coating or touch up is necessary at the low tide area of the pile and cells; and WHEREAS, on June 22, 2009, the City Council adopted Resolution No. 2009 -049 authorizing the City Manager to enter into an agreement for the Renewal of Term of the Maintenance and Operating Agreement containing a temporary extension until September 30, 2010; and WHEREAS, on September 27, 2010, the City Council adopted Resolution No. 2010 -085 authorizing the City Manager to enter into an agreement for the Renewal of Term of the Maintenance and Operating Agreement containing a temporary extension until January 31, 2011; and WHEREAS, additional time is sought by both parties to evaluate and update the language in the Maintenance & Operating Agreement. NOW THEREFORE, the parties agree as follows: Section 1. The Operator will complete the application of coating or touch up at the low tide area of the pile and cells when weather and tides permit completion of that work. Section 2. The Operator agrees to diligently work with the Seward City Manager to evaluate and update language in the Maintenance and Operating Agreement during the term of this extension agreement. Section 3. The Agreement Term as described in Section 2.01 of the Agreement is hereby extended from January 31, 2011 to August 31, 2011. Section 4. The extension of time allowed by this amendment shall not constitute a waiver of any rights of the City or Operator. Section 5. All other provisions of the Agreement remain in full force and effect. Section 6. This Agreement is subject to approval by the Seward City Council and shall become effective upon the signatures of both parties. DATED this day of January, 2011. City: Operator: CITY OF SEWARD SEWARD SHIP'S DRYDOCK, INC. 6tiN'J44 ui+ti.4iiti Phillip Oates, City Manager es T. Pruitt, President ATTEST: Johanna Kinney, CMC, City Clerk 1b Q S Services, Inc. An Alaskan Owned and Operated Testing and Inspection Company Quality Assurance * Weld inspection * Coating Inspection * nondestructive Testing * API 653 Tank Inspection * Special Inspections City of Seward, Alaska 9 September, 2010 Attn: Kari Anderson, Harbormaster Re: Seward's Ship DryDock Specific: Protective Coating Rehabilitation Observations REPORT Arrived at Seward Harbor at 0700 hours on 8 Tuesday, 2010 and met with Kari Anderson and Jim Lewis and traveled in harbor skiff to drydock for inspection. Tide at this time was minus 1.5 and conditions were calm. We conducted observations and inspections around sheet pile buffer and pipe piles under dock area. My observations are as follows: • Surface preparation and coatings were very erratic in base elevation as attached photos show. The maintenance preparation and coatings should be between high and low tide elevations as this is the most corrosive environment. Coatings were taken to the top of all pile but the splash zone is most critical. Recommend complete preparation and coating to low tide level • Poor surface preparation prior to coating was encountered throughout both sheet and pipe pilings. Loose scale, barnacles, particulate matter, etc. was observed on coated surfaces resulting in voids in coating system. Oxidation present in these areas. Large flakes of delaminated oxidation were easily picked off, revealing uncoated surfaces underneath. Coating manufactured recommends high pressure washing at minimum 3000 psig. Contractor was not conducting surface preparation while observations were being conducted. Due to the levels of oxidation and surface defects observed, I would recommend surface preparation by abrasive blasting with a nickel slag or garnet abrasive ( no EPA concerns ) or at a minimum, water jetting per SSPC -SP 12, which requires a minimum 10,000 psig or greater and would be much more effective in removing oxidation and other organic contamination in order to expose a solid substrate in which to coat. • Several attempts to measure dry film thickness of maintenance coatings were indeterminate due to levels of oxidation. Numerous holidays were observed as well as concentrated corrosion in the pinhole form on surfaces prepared and coated. Manufacturer's data sheet for the product being utilized recommends a dry film thickness of 3 -8 mils, and in my opinion, is not adequate to encapsulate the substrate. I would recommend surface preparation as stated above and coating with a 100% solids Polyurea product to attain a dry film thickness of 60 -250 mils in order to better encapsulate the substrate and any surface defects. • Adhesion testing of the maintenance coatings were taken at 3 locations, all high on the sheet pile, out of the splash zone. Results were as follows 1. Inside sheet pile, 448 psi, adhesive failure 2. End sheet pile, 128 psi, coating failure 3. Outside sheet pile, 274 psi, adhesive failure Adhesion is marginal at best and results need to be taken in the splash zone, which is difficult to attain due to cure time of dolly adhesives. • As no surface preparation was being conducted during our observations, no testing for surface contaminates was conducted. In overview, my opinion of the maintenance being conducted is very poor to poor at best. The amount of oxidation already present on surfaces prepared and coated is disturbing. Surface preparation is the most key element in the longevity of a properly specified and applied coating system. With what is currently being done, the extended life of the pilings will be very little. I suggest consulting a corrosion engineering firm for further recommendations and analysis. If you have any questions or need me to expound further on any item, please feel free to call. Respectful ly, Tyrell C. Amberg NACE Certified Level 3 Coating Inspector, #1808 P.O. Box 112328 • Anchorage, AK 99511 -2328 * Ph: (907) 522 -1969 • FAX: (907) 344-1980 11 QA Services, Inc. An Alaskan Owned and Operated Testing and Inspection Compan■ Quality Assurance * Weld Inspection * Coating Inspection * Nondestructive Testing * API 653 Tank Inspection * Special Inspections 1 Se ii. 09/08/2010 07:54 Typical failure of new coatings under dock 0, ` I ) I , 1§ I ii, i ; s jl l ' Y 4 1: � sa.g 00% 0100 EL-3.1 Inconsistent surface preparation and coating elevations throughout piles. Preparation should cover the entire splash zone defined as the area between low and high tides. P.O. Box 1 12328 * Anchorage, AK 99511-2328 * Ph: (907) 522 -1969 * FAX: (907) 344 -1980 QA Services, Inc. An Alaskan Owned and Operated Testing and Inspection Company Quality Assurance * Weld Inspection * Coating inspection * Nondestructn"e Testing * API 653 Tank Inspection * Special Inspections �p • ✓ � R am : 1 1 M +F Typical oxidation due to lack of encapsulation of the substrate by coating system. Scale delamination can also be seen with oxidation leaching from under poorly adhered scale. • a Ott* 1' ' e r ,,0 00I2010 08 :07 i Loose scale and inadequate coating thickness. P.O. Box 112328 * Anchorage, AK 99511 -2328 * Ph: (907) 522 -1969 * FAX: (907) 344 -1980 QA . Services, Inc• An Alaskan Owned and Operated Testing and Inspection C ompany Quality Assurance * Weld Inspection * Coating Inspection * Nondestructive Testing * API 653 Tank Inspection *Sp inspections 09/08/2010 07:51 Poor surface preparation and inconsistent elevations under dock. • ',, c More flaking of scale with oxidation leaching from under. Area with sheen is extremely thin coatings probably due to over thinning. P.O. Box 112328 * Anchorage, AK 99511-2328 * Ph: (907) 522 -1969 * FAX: (907) 344 -1980 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011 -006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE CITY OF SEWARD'S CALENDAR YEAR 2011 STATE LEGISLATIVE PRIORITIES WHEREAS, the City annually compiles a list of projects or issues that are identified as top state legislative priorities; and WHEREAS, the list of projects is compiled and distributed to the State of Alaska Legislature, Kenai Peninsula Borough, and City of Seward lobbyist; and WHEREAS, this resolution validates projects, prioritizes needs, and focuses the efforts of City Administration in its lobbying efforts; and WHEREAS, the passage of this resolution occurs through a public process; and WHEREAS, all projects on this list are consistent with the City Comprehensive and Strategic Plans and WHEREAS, this resolution is an amendment of the City of Seward 2011 State Legislative Priorities established in Resolution 2010 -102. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The following list of legislative projects is hereby declared to be the official amended legislative priority list of the City of Seward for the 2011 State of Alaska legislative session: 1. STATE FUNDED PROJECTS A. PUBLIC FACILITIES (1) $125 thousand for kitchen expansion and renovations in the Seward Senior Center (the Senior Center will provide a matching $90 thousand to complete this project) (2) $2.5 million for constructing a 100' x 80' metal building to replace and relocate our existing public works shop (the City will provide land for the new building) (3) $2 million for expanding the Providence Seward Hospital Medical Clinic, moving the CT scanner into the facility, increasing backup generator capacity, and improving space for primary health care (the City provides $500 thousand annually for hospital financing of capital improvements) CITY OF SEWARD, ALASKA RESOLUTION 2011 -006 B. PORT, HARBOR, AND INDUSTRIAL AREA (1) $16 million for extending the Seward Marine Industrial Center basin breakwater to improve and increase ship moorage and loading capacity, ship repair capabilities, seafood processing operations, and barge landings (2) $100.5 thousand for engineering and design to replace failing infrastructure in the Seward Small Boat Harbor including A, B, C, and S Floats (3) $800 thousand for the Municipal Harbor Matching Grant Program to support replacing "D" Float in the Seward Small Boat Harbor (the City of Seward will provide an $800 thousand match to complete this $1.6 million project) (4) $575 thousand for building a Handicap Accessible Fish Cleaning Station in the Northeast Launch Ramp Area of the Seward Small Boat Harbor (5) $250 thousand for paving and improving drainage in the northeast parking lot of the Seward Small Boat Harbor (6) $1.5 million for storm water discharge infrastructure that includes a security fence around the city vessel storage area at the Seward Marine Industrial Center (7) $1.7 million for doubling the capacity of the ship lift (syncrolift) and improving dock capabilities at the Seward Marine Industrial Center (8) $25 thousand to upgrade the Harbor Security Camera System (9) $4.5 million for completing sheet piling and adding moorage along the north side of the Seward Small Boat Harbor C. ELECTRIC (1) $4 million for completing the standby generator complex for the Seward Electric Utility as a match for $6 million in City revenue bond funding (this will allow the City of Seward to contribute power generation remotely to the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — system for emergencies and back -up; this project includes moving 2 each 2.5 MW generators into the newly constructed generator plant building; completing the installation of automated generator controls through a Supervisory Control and Data Acquisition — SCADA — system; and constructing an emergency operations building for immediate response, maintenance, and warehousing) (2) $1.5 million to repair and replace one mile of transmission line into the Fort Raymond Substation with 115kV compatible equipment (this is a project supported by the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — because the current condition of the transmission line exceeds the estimated life expectancy of 50- years) (3) $17 million for upgrading the transmission line to 115KV in Seward (and upgrading transformers and other equipment for the higher voltage) to reduce line loss while CITY OF SEWARD, ALASKA RESOLUTION 2011 -006 improving efficiency and reliability of power distribution throughout the service area (4) $300 thousand for installing automatic electrical metering equipment to improve customer service, outage management, and load management (the City will provide a 100% match of $300 thousand to complete the project) (5) $85 thousand for establishing improvements to redundant capabilities for providing electrical power during emergencies, such as a tsunami, to the downtown and hospital area of Seward (the City will provide a 100% match of $85 thousand for the project) (6) $5 million from the Rail -belt inter -tie funds for upgrading transmission lines between Anchorage and Seward (7) $60 thousand for studying the feasibility of a hydro electric plant to produce renewable energy in Seward D. ROADS, STREETS, AND ADA ACCESIBILITY (1) $100 thousand for improving City ADA accessibility (2) $2.25 million for Seward Community Roads for repaving road surfaces, reconstructing sidewalks, and improving roadway drainage systems (3) $2.496 million for design, engineering, construction, and protection from coastal erosion for the Lowell Point Road in the City of Seward (this road provides the sole land access to critical public infrastructure, state parks, and a Kenai Peninsula Borough residential housing area) 2. CRUISE SHIP HEAD TAX OR CRUISE SHIP GAMBLING TAX (1) Reappropriate $L992 million from Designated Legislative Grant # 10 -DC -024, Dredging Cruise Ship Berthing Basin Approaches, for building a new water storage tank and distribution system that will establish the excess capacity to provide water and improved fire protection to cruise ships (this $1.992 million of funding is a 44% match for the $4.5 million water storage project -- the $2.508 million in additional funding for the project is from low interest loans that will be obtained by the City — the City has already spent approximately $130 thousand in a 35% design of the project and $394 thousand in ARRA stimulus funding on expansion of the water distribution system that will accommodate the new storage tank) (2) $225 thousand to improve public restrooms in the Seward Small Boat Harbor (these restrooms are used extensively by cruise ship crew members and passengers) (3) $25 thousand to extend the ADA accessible boardwalk from Port Avenue to the Holiday Inn Express (this is a primary pedestrian route for cruise ship members and passengers) 83 CITY OF SEWARD, ALASKA RESOLUTION 2011 -006 (4) $500 thousand for improving the cruise ship pedestrian corridor between the Alaska Railroad Terminal and Cruise Ship Terminal (5) $215 thousand to construct an ADA accessible boardwalk for cruise ship passengers in the new upland area of the Seward Small Boat Harbor (the City will provide $50 thousand to this project) (6) $1.6 million for dock appurtenances at the Cruise Ship Terminal of the Alaska Railroad (these appurtenances include berthing camels for $390 thousand, baggage conveyor slot for $350 thousand, seasonal covered walkway for $360 thousand, installation of a second mooring bollard to accommodate a second cruise ship for $100 thousand, extension of dock security lighting for $200 thousand, repair of piles with severe corrosion for $100 thousand, and repair of the cathodic protection system for $100 thousand) (7) $275 thousand to prevent erosion that threatens a U.S. Coast Guard communication tower for transmitting emergency communications to cruise ships and other vessels (8) $2 million for constructing a 100' by 80' metal building to house emergency response equipment and shelter supplies at the Fort Raymond Satellite Fire Station (this location will allow or speed response to emergencies at the Cruise Ship Dock during those periods when other response is prevented by earthquakes or tsunamis) 3. STATEWIDE PROJECTS (1) $2 million for dock improvements and dredging at the Seward Marine Center to prepare for the R/V Sikuliaq (2) $150 thousand to continue renovating the Alutiiq Pride Shellfish Hatchery and expand shellfish aquaculture in Alaska. (3) $265 thousand for a new Fire Alarm Control Panel for the Alaska SeaLife Center (4) $250 thousand for engineering and architectural design of an Arctic marine research and public education habitat at the Alaska SeaLife Center (5) $470 thousand for construction of a new courtyard sail cover at the Alaska SeaLife Center to protect cruise ship passengers and other visitors from inclement weather (6) $155 thousand in the Department of Corrections Operating Budget to add an emergency wastewater bypass (with valves and piping) to keep the Spring Creek Correctional Facility sewage system operational in the event of a system failure (7) Full funding of the Governor's Capital Budget for AVTEC that includes $1 million for deferred maintenance and $210 thousand for the Maritime Simulator (8) Full funding of the Governor's Operating Budget for AVTEC that includes $250 thousand for deferred maintenance, $48 thousand for the Maritime Designated Duty Engineer Training Program, and $226.8 thousand for the RN Program CITY OF SEWARD, ALASKA RESOLUTION 2011 -006 4. BENEFICIAL LEGISLATION (1) Extension of the Education Tax Credit to the Alaska SeaLife Center (2) Legislative support for increased cash infusion into PERS /TRS retirement system in order to offset unfunded retirement system liabilities, to make future contribution rates more affordable for the State and local governments (3) Appropriation for upgrading Seward Highway (MP18 -25.5) in the STIP (4) Appropriation for upgrading Seward Highway (MP 25.5 -36) in the STIP (5) Appropriation for upgrading the Sterling Highway (MP 45 -60) in the STIP (6) Construction of a highway exit off the Seward Highway in the vicinity of MP 6 for better and safer vehicle access to Camelot and Salmon Creek subdivisions (7) Support for continuing Medicaid programs and capital cost reimbursement at not less than current year funding levels (8) Return of service to Seward by the State Ferry Tustumena (9) Alternative Energy Programs that encourage and fund participation by the City and its electrical utility customers (10) Support of legislation forming an Alaska Invasive Species Council to help coordinate proactive action that prevents detrimental invasive species from being introduced into Alaska 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 24 day of January, 2011. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, City Clerk (City Seal) Council Agenda Statement Hof SFh, ef Meeting Date: January 24, 2011 'i From: Phillip Oates, City Manager 14. - P' Agenda Item: Calendar Year 2011 State Legislative Priorities BACKGROUND & JUSTIFICATION: Administration annually compiles a list of projects and legislation for consideration as our state legislative priorities. After validation of the list through a public process, and approval by the City Council, the list is given to the Governor's Office, our legislators, the Kenai Peninsula Borough (for inclusion in their legislative package), and our lobbyist. These priorities focus the efforts of Administration and the City Council in our lobbying efforts as we seek funding or other resolution through State government. Frequently, the list of projects and legislation is updated at the beginning of the legislative session. That is the case with this resolution. It is an update of Resolution 2010 -102 that was passed and approved by the City Council of the City of Seward, Alaska on October 25, 2010. The following list is submitted to the City Council for review and approval. 1. STATE FUNDED PROJECTS A. PUBLIC FACILITIES (1) $125 thousand for kitchen expansion and renovations in the Seward Senior Center (the Senior Center will provide a matching $90 thousand to complete this project) (2) $2.5 million for constructing a 100' x 80' metal building to replace and relocate our existing public works shop (the City will provide land for the new building) (3) $2 million for expanding the Providence Seward Hospital Medical Clinic, moving the CT scanner into the facility, increasing backup generator capacity, and improving space for primary health care (the City provides $500 thousand annually for hospital financing of capital improvements) B. PORT, HARBOR, AND INDUSTRIAL AREA (1) $16 million for extending the Seward Marine Industrial Center basin breakwater to improve and increase ship moorage and loading capacity, ship repair capabilities, seafood processing operations, and barge landings (2) $100.5 thousand for engineering and design to replace failing infrastructure in the Seward Small Boat Harbor including A, B, C, and S Floats (3) $800 thousand for the Municipal Harbor Matching Grant Program to support replacing "D" Float in the Seward Small Boat Harbor (the City of Seward will provide an $800 thousand match to complete this $1.6 million project) (4) $575 thousand for building a Handicap Accessible Fish Cleaning Station in the Northeast Launch Ramp Area of the Seward Small Boat Harbor (5) $250 thousand for paving and improving drainage in the northeast parking lot of the Seward Small Boat Harbor (6) $1.5 million for storm water discharge infrastructure that includes a security fence around the city vessel storage area at the Seward Marine Industrial Center (7) $1.7 million for doubling the capacity of the ship lift (syncrolift) and improving dock capabilities at the Seward Marine Industrial Center (8) $25 thousand to upgrade the Harbor Security Camera System (9) $4.5 million for completing sheet piling and adding moorage along the north side of the Seward Small Boat Harbor C. ELECTRIC (1) $4 million for completing the standby generator complex for the Seward Electric Utility as a match for $6 million in City revenue bond funding (this will allow the City of Seward to contribute power generation remotely to the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — system for emergencies and back -up; this project includes moving 2 each 2.5 MW generators into the newly constructed generator plant building; completing the installation of automated generator controls through a Supervisory Control and Data Acquisition — SCADA — system; and constructing an emergency operations building for immediate response, maintenance, and warehousing) (2) $1.5 million to repair and replace one mile of transmission line into the Fort Raymond Substation with 115kV compatible equipment (this is a project supported by the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — because the current condition of the transmission line exceeds the estimated life expectancy of 50- years) (3) $17 million for upgrading the transmission line to 115KV in Seward (and upgrading transformers and other equipment for the higher voltage) to reduce line loss while improving efficiency and reliability of power distribution throughout the service area (4) $300 thousand for installing automatic electrical metering equipment to improve customer service, outage management, and load management (the City will provide a 100% match of $300 thousand to complete the project) (5) $85 thousand for establishing improvements to redundant capabilities for providing electrical power during emergencies, such as a tsunami, to the downtown and hospital area of Seward (the City will provide a 100% match of $85 thousand for the project) (6) $5 million from the Rail -belt inter -tie funds for upgrading transmission lines between Anchorage and Seward (7) $60 thousand for studying the feasibility of a hydro electric plant to produce renewable energy in Seward D. ROADS, STREETS, AND ADA ACCESIBILITY (1) $100 thousand for improving City ADA accessibility (2) $2.25 million for Seward Community Roads for repaving road surfaces, reconstructing sidewalks, and improving roadway drainage systems (3) $2.496 million for design, engineering, construction, and protection from coastal erosion for the Lowell Point Road in the City of Seward (this road provides the sole land access to critical public infrastructure, state parks, and a Kenai Peninsula Borough residential housing area) 81 2. CRUISE SHIP HEAD TAX OR CRUISE SHIP GAMBLING TAX (1) Reappropriate $1.992 million from Designated Legislative Grant # 10 -DC -024, Dredging Cruise Ship Berthing Basin Approaches, for building a new water storage tank and distribution system that will establish the excess capacity to provide water and improved fire protection to cruise ships (this $1.992 million of funding is a 44% match for the $4.5 million water storage project -- the $2.508 million in additional funding for the project is from low interest loans that will be obtained by the City — the City has already spent approximately $130 thousand in a 35% design of the project and $394 thousand in ARRA stimulus funding on expansion of the water distribution system that will accommodate the new storage tank) (2) $225 thousand to improve public restrooms in the Seward Small Boat Harbor (these restrooms are used extensively by cruise ship crew members and passengers) (3) $25 thousand to extend the ADA accessible boardwalk from Port Avenue to the Holiday Inn Express (this is a primary pedestrian route for cruise ship members and passengers) (4) $500 thousand for improving the cruise ship pedestrian corridor between the Alaska Railroad Terminal and Cruise Ship Terminal (5) $215 thousand to construct an ADA accessible boardwalk for cruise ship passengers in the new upland area of the Seward Small Boat Harbor (the City will provide $50 thousand to this project) (6) $1.6 million for dock appurtenances at the Cruise Ship Terminal of the Alaska Railroad (these appurtenances include berthing camels for $390 thousand, baggage conveyor slot for $350 thousand, seasonal covered walkway for $360 thousand, installation of a second mooring bollard to accommodate a second cruise ship for $100 thousand, extension of dock security lighting for $200 thousand, repair of piles with severe corrosion for $100 thousand, and repair of the cathodic protection system for $100 thousand) (7) $275 thousand to prevent erosion that threatens a U.S. Coast Guard communication tower for transmitting emergency communications to cruise ships and other vessels (8) $2 million for constructing a 100' by 80' metal building to house emergency response equipment and shelter supplies at the Fort Raymond Satellite Fire Station (this location will allow or speed response to emergencies at the Cruise Ship Dock during those periods when other response is prevented by earthquakes or tsunamis) 3. STATEWIDE PROJECTS (1) $2 million for dock improvements and dredging at the Seward Marine Center to prepare for the RN Sikuliaq (2) $150 thousand to continue renovating the Alutiiq Pride Shellfish Hatchery and expand shellfish aquaculture in Alaska. (3) $265 thousand for a new Fire Alarm Control Panel for the Alaska SeaLife Center (4) $250 thousand for engineering and architectural design of an Arctic marine research and public education habitat at the Alaska SeaLife Center (5) $470 thousand for construction of a new courtyard sail cover at the Alaska SeaLife Center to protect cruise ship passengers and other visitors from inclement weather (6) $155 thousand in the Department of Corrections Operating Budget to add an emergency wastewater bypass (with valves and piping) to keep the Spring Creek RTC Correctional Facility sewage system operational in the event of a system failure (7) Full funding of the Governor's Capital Budget for AVTEC that includes $1 million for deferred maintenance and $210 thousand for the Maritime Simulator (8) Full funding of the Governor's Operating Budget for AVTEC that includes $250 thousand for deferred maintenance, $48 thousand for the Maritime Designated Duty Engineer Training Program, and $226.8 thousand for the RN Program 4. BENEFICIAL LEGISLATION (1) Extension of the Education Tax Credit to the Alaska SeaLife Center (2) Legislative support for increased cash infusion into PERS /TRS retirement system in order to offset unfunded retirement system liabilities, to make future contribution rates more affordable for the State and local governments (3) Appropriation for upgrading Seward Highway (MP18 -25.5) in the STIP (4) Appropriation for upgrading Seward Highway (MP 25.5 -36) in the STIP (5) Appropriation for upgrading the Sterling Highway (MP 45 -60) in the STIP (6) Construction of a highway exit off the Seward Highway in the vicinity of MP 6 for better and safer vehicle access to Camelot and Salmon Creek subdivisions (7) Support for continuing Medicaid programs and capital cost reimbursement at not less than current year funding levels (8) Return of service to Seward by the State Ferry Tustumena (9) Alternative Energy Programs that encourage and fund participation by the City and its electrical utility customers (10) Support of legislation forming an Alaska Invasive Species Council to help coordinate proactive action that prevents detrimental invasive species from being introduced into Alaska INTENT: This list of priorities focuses the efforts of Administration in lobbying efforts to obtain appropriations, grants, and legislation from the State of Alaska to improve the City of Seward. To qualify for most appropriations and grants, the list of State priorities must be approved in a public process by the City Council. CONSISTENCY CHECKLIST Where applicable, this resolution is consistent with guidance and directives in the Seward City Code, City Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and the City Council Rules of Procedures. FISCAL NOTE: N IA Approved by Finance Department: /,__/ • ' ATTORNEY REVIEW: Yes No X RECOMMENDATION Council approve Resolution 2&1 approving the City of Seward's Calendar Year 2011 State Priorities ab 11'9 CA Council Agenda Statement Addendum Meeting Date: January 24, 2011 e c { °K 4 From: Phillip Oates, City Manager a • ' : ,=.1 4 &ASY. Agenda Item: Calendar Year 2011 State Legislative Priorities This addendum is provided to assist Council identification of the changes in Resolution 2011 -006 from those in Resolution 2010 -102 that is being amended. 1. STATE FUNDED PROJECTS (the title of this category of projects was changed from "State Funded Projects With Local Match" to "State Funded Projects "). A. PUBLIC FACILITIES All Alaska Sealife Center projects requiring an appropriation were moved to the category "Statewide Projects" that was formerly listed as "State Funded Projects." Thus, the $265K for the Fire Alarm Control Panel was moved to the new listing. B. PORT, HARBOR, AND INDUSRIAL AREA The following project amount was changed from $600K to $800K and the $800K match from the City was added: (3) $800 thousand for the Municipal Harbor Matching Grant Program to support replacing "D" Float in the Seward Small Boat Harbor (the City of Seward will provide an $800 thousand match to complete this $1.6 million project). C. ELECTRIC The following project was changed from $2M to $4M and justification added to contribute power generation to ARCTEC: (1) $4 million for completing the standby generator complex for the Seward Electric Utility as a match for $6 million in City revenue bond funding (this will allow the City of Seward to contribute power generation remotely to the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — system for emergencies and back -up; this project includes moving 2 each 2.5 MW generators into the newly constructed generator plant building; completing the installation of automated generator controls through a Supervisory Control and Data Acquisition — SCADA — system; and constructing an emergency operations building for immediate response, maintenance, and warehousing). The following project was added to remain consistent with the pending ARCTEC Bill and associated fiscal note: (2) $1.5 million to repair and replace one mile of transmission line into the Fort Raymond Substation with 115kV compatible equipment (this is a project supported by the Alaska Railbelt Cooperative Transmission and Electric Company — ARCTEC — because the current condition of the transmission line exceeds the estimated life expectancy of 50- years). The following project was changed from $12M to $17M because of a new cost estimate to complete the work: (3) $17 million for upgrading the transmission line to 115KV in Seward (and upgrading transformers and other equipment for the higher voltage) to reduce line loss while 10 improving efficiency and reliability of power distribution throughout the service area. The following project was moved to the "Electric" category from "Statewide Projects ": (7) $60 thousand for studying the feasibility of a hydro electric plant to produce renewable energy in Seward. 2. CRUISE SHIP HEAD TAX OR CRUISE SHIP GAMBLING TAX The following project was moved (and revised) from the 4 priority in the category to the 1st priority because the $4.5M AKRR dredging project came in under budget and the opportunity exists for a reappropriation of those funds: (1) Reappropriate $1.992 million from Designated Legislative Grant # 10 -DC -024, Dredging Cruise Ship Berthing Basin Approaches, for building a new water storage tank and distribution system that will establish the excess capacity to provide water and improved fire protection to cruise ships (this $1.992 million of funding is a 44% match for the $4.5 million water storage project -- the $2.508 million in additional funding for the project is from low interest loans that will be obtained by the City — the City has already spent approximately $130 thousand in a 35% design of the project and $394 thousand in ARRA stimulus funding on expansion of the water distribution system that will accommodate the new storage tank). The following project was moved from the 1 priority to the 2 " priority and increased from $150K to $225K because of an updated cost estimate: (2) $225 thousand to improve public restrooms in the Seward Small Boat Harbor (these restrooms are used extensively by cruise ship crew members and passengers). The following project was added to the list because the lower cost will make funding more possible (formerly this portion of the project was part of the $175K to complete the entire boardwalk): (2) $25 thousand to extend the ADA accessible boardwalk from Port Avenue to the Holiday Inn Express (this is a primary pedestrian route for cruise ship members and passengers). The following project was moved from the 2 " priority to the 4 in this category: (4) $500 thousand for improving the cruise ship pedestrian corridor between the Alaska Railroad Terminal and Cruise Ship Terminal. The following project was moved from the 3 priority to the 5 priority and increased from $175K to $215K because of an updated cost estimate: (5) $215 thousand to construct an ADA accessible boardwalk for cruise ship passengers in the new upland area of the Seward Small Boat Harbor (the City will provide $50 thousand to this project). The following project was added to the list at the request of the AKRR: (6) $1.6 million for dock appurtenances at the Cruise Ship Terminal of the Alaska Railroad (these appurtenances include berthing camels for $390 thousand, baggage conveyor slot for $350 thousand, seasonal covered walkway for $360 thousand, installation of a second mooring bollard to accommodate a second cruise ship for $100 thousand, extension of dock security lighting for $200 thousand, repair of piles with severe corrosion for $100 thousand, and repair of the cathodic protection system for $100 thousand) 3. STATEWIDE PROJECTS (this category was changed to "Statewide Projects" from "State Funded Projects "). 9 1 The following project was added to the list at the request of the manager of the Alutiiq Pride Shellfish Hatchery: (2) $150 thousand to continue renovating the Alutiiq Pride Shellfish Hatchery and expand shellfish aquaculture in Alaska. The following three projects were moved to this category of Statewide Projects: (3) $265 thousand for a new Fire Alarm Control Panel for the Alaska SeaLife Center and (4) $250 thousand for engineering and architectural design of an Arctic marine research and public education habitat at the Alaska SeaLife Center and (5) $470 thousand for construction of a new courtyard sail cover at the Alaska SeaLife Center to protect cruise ship passengers and other visitors from inclement weather. The following project was moved from the 2 priority to the 6th priority in this category: (6) $155 thousand in the Department of Corrections Operating Budget to add an emergency wastewater bypass (with valves and piping) to keep the Spring Creek Correctional Facility sewage system operational in the event of a system failure. The following two projects were added to the list at the request of the Director of AVTEC: (7) Full funding of the Governor's Capital Budget for AVTEC that includes $1 million for deferred maintenance and $210 thousand for the Maritime Simulator and (8) Full funding of the Governor's Operating Budget for AVTEC that includes $250 thousand for deferred maintenance, $48 thousand for the Maritime Designated Duty Engineer Training Program, and $226.8 thousand for the RN Program. 4. BENEFICIAL LEGISLATION The following request was added to this category: (2) Legislative support for increased cash infusion into PERS /TRS retirement system in order to offset unfunded retirement system liabilities, to make future contribution rates more affordable for the State and local governments. °91 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011 -007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, RETROACTIVELY AMENDING THE 2010 BUDGET TO RECORD EXPENDITURES OF $138,285.65 PAID BY THE STATE OF ALASKA ON BEHALF OF THE CITY TOWARD THE CITY'S PUBLIC EMPLOYEES RETIREMENT SYSTEM LIABILITY, PER HB300 WHEREAS, the State of Alaska Department of Administration, Division of Retirement & Benefits contributed $127,557.38 on behalf of the City from January through June, 2010, reflecting the 5.65% difference between the actuarially required contribution rate of 27.65% as adopted by the Alaska Retirement Management Board' and the 22% employer "capped" rate established by SB53, and the City Council appropriated these State retirement contributions in Resolution 2010 -119 passed on December 13, 2010; and WHEREAS, the 2010 Alaska State Legislature passed House Bill 300, appropriating funds on behalf of the City, to cover $138,285.65 of the City's contribution to the Public Employees' Retirement System for the period July through December, 2010, reflecting the 5.96% difference between the actuarially required contribution rate of 27.96% as adopted by the Alaska Retirement Management Board and the 22% employer "capped" rate; and WHEREAS, in accordance with generally accepted accounting principles, the City must record payments made on its behalf, and must therefore amend the 2010 Budget to account for both the expenditures paid on behalf of the City, and the corresponding revenues paid by the State of Alaska Department of Administration; and WHEREAS, failure to amend the budget to reflect the State's payments on- behalf of the City, will result in an imbalance between the actual and budgeted revenues and expenditures, giving the appearance of revenues and expenditures exceeding the annual budget as approved by the Seward City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: 1 The ARC reflects normal cost rate of 9.46% plus past service cost rate of 18.19 %, and is further expressed as pension costs of 10.25% and healthcare costs of 17.40 %. 2 The ARC reflects normal cost rate of 9.33% plus past service cost rate of 18.63 %, and is further expressed as pension costs of 9.98% and healthcare costs of 17.98 %. CITY OF SEWARD, ALASKA RESOLUTION 2011 -007 Section 1. The 2010 Operating Budget shall be retroactively amended to appropriate $138,285.65 from the State grant revenues accounts x01- 0000 - 4680 -0200 to various department retirement expense accounts allocated on a pro -rata basis, to accounts x01 -xxxx -5060. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of January, 2011. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney City Clerk (City Seal) COUNCIL AGENDA STATEMENT Meeting Date: January 24, 2011 e a of se Through: u,` :o g Phillip Oates, City Manager - �; Y g t , From: Kristin Erchinger, Finance Director l tA54. P Agenda Item: 2010 Budget Amendment appropriating the second half of the State PERS on- behalf contributions in the amount of $138,285.65 BACKGROUND & JUSTIFICATION: In 2010, the State legislature passed House Bill 300, appropriating $165,841,171 directly to PERS on behalf of Alaska municipalities, to help offset retirement liability costs to local taxpayers. The City of Seward's portion of this appropriation (for the period July 1 through December 31, 2010) is $138,285.65. This amount is being paid directly to the City's PERS account with the State of Alaska Division of Retirement & Benefits. While the funds did not come directly through the City, we are nonetheless required to account for the State's contribution as both a revenue and an expense /expenditure on the City's financial statements. In 2008, Senate Bill 125 was passed, capping the annual PERS contribution rates for employers at 22 %, and creating a cost - sharing plan in which all employers pay the same employer contribution rate. This was a departure from the previous plan, in which every employer was assigned a different employer cost rate, depending on their individual experience. The Alaska Retirement Management Board has established the following PERS employer contribution rates: 2009 2010 2011 Normal Cost 13.72% 9.46% 9.33% Past Service Cost 21.50% 18.19% 18.63% Total Rate 35.22% 27.65% 27.96% Pension Cost 10.91% 10.25% 9.98% Healthcare Cost 24.31% 17.40% 17.98% Total Rate 35.22% 27.65% 27.96% State On- Behalf Rate 13.22% 5.65% 5.96% State On- Behalf $420,411.62 $265,843.03 TBD Amount (CY) The State is on a fiscal year ending June 30, so the City applies the above 2010 rate to employee wages for the period January 1 through June 30, 2010, and the above 2011 rate to wages for the period July 1 through December 31, 2010. For the first half of the City's calendar year 2010, the State's contributions to PERS on the City's behalf totaled $127,557.38, and for the second half the contribution was $138,285.65 for a total calendar year contribution of$265,843.03. CITY OF SEWARD RESOLUTION 2011 - Page Two Municipal governments in Alaska have benefited significantly by the State's coverage of PERS costs in excess of 22 %. However, it is important to note that the legislature may, at any time, modify the amount of subsidy provided by the State toward PERS contributions. Any future reduction in the State's current practice of covering contribution rates exceeding 22 %, will equate to equivalent additional required contributions by the City. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan 2. Strategic Plan 3. Other 4. Not applicable X FISCAL NOTE: The State's contribution of $138,285.65 is considered a State grant award and is recognized as such on the City's financial statements, with an equivalent amount recorded as retirement expense /expenditure, allocated on a pro -rata basis, to each department's operating budget. Approved by Finance Department 4 Ah{orVit urw : Yes ti a RECOMMENDATION: Council approve Resolution 2011 - 00' retroactively amending the 2010 Operating Budget by appropriating $138,285.65 from State grant revenues, to various fund retirement expense accounts, on a pro -rata basis, to accounts X01 -XXXX -5060. City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page CALL TO ORDER The January 10, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance t the fla JOHANNA KINNEY WAS SWORN IN AS CITY CLE ° BY : DUNHAM ROLL CALL There were present: Willard E. Dunham presiding and Mfri Keil Jean Bardarson V hafe &' Bob Valdatta comprising a quorum of the Council; and Phillip Oates, City Manager . Johanna. Kinney City Clerk ABSENT — Tom Smith, Ristine Casagranda\ A moment of silence was g for former Fire Chief Oscar Watsjold, who passed away January 9, 2011. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING keitn ti,impbell'cspoke in favor of the library museum project and spoke in favor of Ordinance 2010.009He reminded the monies already brought in for this project. He urged them to move this project �lor g. This last piece put this project over the hump. Kent Crandall, project manager for the library museum project, spoke in support of the library/museum. He understood it was a difficult decision as to how to fund the rest of the project. Crandall encouraged council to move forward with a decision and not postpone further. Construction timelines and project material prices were changing and it was important to make a decision. Jim Herbert congratulated Kinney, and reminded the public the deadline for the student exchange was this Friday and encouraged applications. He spoke in favor of Ordinance 2010 -009 l-1 City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page and felt it was important to sustain momentum of this project. Herbert understood they had a difficult decision to make, but reminded them it was a legacy issue. He urged the sales tax increase. Chellie Skoog spoke regarding the library museum project. Skoog was the development director of the project. She encouraged council to move forward on the bonding of this project. This would be a wonderful asset and addition to this community. There had been countless volunteer hours already given to this project and agreed momentum should be kept rno ing forward. They have had more than 200 donors to this project in addition to state and grant'assistarce, and they were still fundraising. She also supported the sales tax ordinance. Mary Tougas reiterated what everyone else had saidon the library museum issue. Building material costs were low right now, bond rates were 10* `nw, and ought the window of opportunity was before the council. She noted thee ®:eto thank gtev ns' for his help in Juneau to bring forward the state money for this project, Which was almost $5 miIlio She felt it was time to make this a reality. Cheryl Seese supported the sales tax increase. She felt it was fairer than property tax increases. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer)i =r Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: The December 13, 2010 Regular city Council Meeting Minutes Were Approved. Council voted to continue the Port and Commerce Advisory Board for another year. Appointed Dale Butts to the Planning and Zoning Commission for a term to expire in February 2013. } Non - Objection for,the Liquor License renewals for Ray's Waterfront and the Yukon Bar. Resolution 2011 -001, Reappropriating $7,676.04 In Unspent Police Funding From The 2010 Budget To 2011 Budget To Migrate Radio Communications To Meet New Bandwidth Requirements. Resolution 2011 -002, Accepting A Grant In The Amount Of $1,827.30 From The Alaska Highway Safety Office For 2011 January — March ASTEP Driving Under The Influence (DUI) Enforcement Campaign And Appropriating Funds. Resolution 2011 -003, Appointing Brenda Ballou As The Deputy Clerk. City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A 2009 Community Initiative Award for contributions made on behalf of community water fluoridation by the State, CDC and Alaska Oral Health Program. The certificate of appreciation was given to Maya Moriarty and Patty Beals "en r a - of the community PP g Y t3' t3' � 1. :. xi "Wellness for All" Committee. 4011. Borough Assembly Report, Sue McClure stated from the January 4, 2011 meeting there was discussion about about snow grading at the Gray Cliffs land area, where„the assembly put rail cars in for a bridge. They appropriated $16 million in general obligation bonds or the roofing of schools. A recent big issue was the Twin Cities ack Kenai, where the ivied over two 7 07 , 4 t hours of public testimony. The Assembly decide , 4 therea after much di ssion and many options. McClure noted she acted as a liaison to several "service'area boards and regularly attended the Lowell Point and Bear Creek Fire Service Area Board Meetings as well as the Seward Bear Creek Flood Service Area Board meetings. She was concerned with the city seat still unfilled on the flood service area board and reported there had,been discussion of replacing that seat with an out of city seat. Christy Terry used to attend as dent director <anfl'she requested someone attend these because the city needed to have a facet re T e,next 4ssembl meeting was January 18, 2011. City Manager's Report, City Manager Phillip Oates stated he sent a letter to Alaska Waste who would be taking over � ' g the billing Agarbage pickup, suggesting they maintain most of the city policies as they conducted their billing, uch as not billing if the residence was vacant for a prolonged period of time. ' 'He p rovided to coundl a summary of annual police department statistics for 2010. Oates mentioned a - -matter of press release by the state regarding the recent drug investigation and bust in the area. He addressed this because of the perceived drug problem in the area `die noted this wasf a. year long -investigation, and it was not public until an arrest had been made. But he wanted council and the public to know law enforcement was working on fighting drugs in the community. „! Oates introduced, the SWAT Committee — Seward Wants Action Today — which consisted of a group of volunteers to look at select industries and what they needed to survive and advance. They would canvass information to find what was working well, and what needed change. There had not been any purchases approved between $10,000- 50,000 since the last Council Meeting. In the Harbor, the Marine Travelift Policy was updated. This update reflected changes based on (a) the increase — widening — of the 50 -ton Travelift, (b) prepayment requirements, and (c) that staff would be checking insurance on transient vessels, as it was already on file for slip- holders. The City was involuntarily relinquishing slips for individuals who did not respond or pay their moorage fees with the 2011 moorage contracts. Metco delivered several large rocks to mark the 't;1 City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page perimeter of the Mariner's Memorial site on the South Harbor Uplands. The City intended to enter into an agreement with TelAlaska to bring telecommunications service to Z float, specifically at the request of the USCG. This service was already available in several other floats in the harbor. GCI was contacted about this opportunity; however they had no existing infrastructure in the NE Harbor. The Fire Department responded to 311 calls for 2010. A detailed report would be forth coming to Council. The Department responded to a structure fire on the morning of January 2, 2010 at 321 Second Avenue. The fire started on the exterior of the building' and extended into the structure. No injuries were reported. The family was back in the budding the next day. The Fire Chief was asking that residents ensure their addresses„ on their homes and businesses were clearly visible from the street. Emergency responders were having a difficult time finding numbers on the buildings at night and did not want delays in getting to the right address. Mayoral Report, Mayor Willard E.,Dun "hairs;,, tated it had been a quiet four weeks since their last meeting. The big thing that had happen �A�TEC agreement was signed and a railbelt utility was formed. This would be the primary" requesting group for energy funding. They had requested $136 million in upgrades, Seward included in that for 3 projects totaling $22.5 million dollars. This group had the blessing of the Alaska Energy Association. 'Each utility had two votes, Seward was an equal partner. Anchorage Light and Power did not join because they had purchased outside natural gas and they had bonding in theirmunicipality so they do not know if they could join the coop, but they were participating. He iste�d' then ht�a d of directors — including Dunham as Treasurer. He felt this was an exciting opportunity and was'pleased it was actually happening. Had a great visit with Senator Stevens on Saturday and he toured the Sealife Center and the saltwater heat system at the facility. The EDD was meeting on Thursday and Friday and he was invited to participate in the Governor's inaugural ball and to sit at the governor's table. Valdatta thought maybe the EDD could assist with the new charter regulations that were devastating to the charter fleet industry. Dunham noted a wrecked car on Third Avenue he would like to see removed, but it was a state street. " Something needed' to be done. PACAB Annual Report, Chair Ron Long stated January through May there was something to work on each meeting. . "`PACAB helped draft title 7 code revisions. They provided input on the Northeast Harbor Development Plan, possibility of land selling, the Harbor Vessel Maintenance and Repair Policy, the All Hazard Mitigation Plan, the State Transportation Improvement Plan, the South Harbor Upland Improvements Plan, and worked with administration and the Chamber of Commerce on the economic development assessment. The board gave input on the federal, state, and city priorities, what slip configurations on Z float should look like, and they wre looking ahead to a joint work session with P &Z for the lease nominations process. The board did some traveling, attending various meetings such as the Clean Energy Conference, the World Trade Center of Alaska, and the Fish Expo. Long was pleased PACAB had support and attendance from the Harbor and Community Development Departments at all meetings. They did have some quorum issues, but PACAB was now up to a full slate and they were looking forward to another year. City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page Keil hoped PACAB members would join them for the January 26, 2011 Land Ad Hoc Committee /council work session. Valdatta was impressed with the company putting in the docks, Harris Sand and Gravel. Oates thanked Long and the board for their many contributions. Other Reports, Announcements and Presentations - None PUBLIC HEARING - None UNFINISHED BUSINESS Ordinance For Introduction Ordinance 2010 -009, Amending Seward City Code Section 5.35.055'V );;Create A Revenue Source For Repayment Of The $3.73m General Obligation Bond For Construction Of The Seward Community Library Museum By Establishing A Variable Seasonal Sales Tax That Increases The City Of Seward Rate To 5% DuringAp it Through September Of Each Year And Reduces The Rate To 3% In October Throughi;l 'arch OfEach Year. Motion (Shafer/Keil) Introduce - Ordinance 2010 -009 Oates stated he was prepared to speak to this during public hearing. If council did not object to that, administration would hold their comments until January 24, 2011. Motion Passed �� Unanimous Resolution For Introduction (For public notice purposes only Not for adoption tonight. To bring with above ordinance for public hearing on January 24, 2011) Resolution 2010- 130,'Establishing A 1 Mill Increase In Property Tax To Generate A Revenue Source For Repayment >OfThe $3.73 Million General Obligation Bond For The Construction Of The Seward Community Library Museum. Motion (Bardarson /Shafer) Introduce Resolution 2010 -130 Oates reiterated that staff was prepared to give comment at the January 24, 2011 meeting. Motion Passed Yes: Keil, Shafer, Bardarson, Dunham No: Valdatta NEW BUSINESS OTHER NEW BUSINESS \ , City of Seward, Alaska City Council Minutes January 10, 2011 Volume 38, Page INFORMATIONAL ITEMS AND REPORTS (No action required) COUNCILS' COMMENTS Shafer said Seward's winter treasure chest had started, which was a program to encourage those to shop downtown. She wished all a good January. rJ Keil expressed condolences to the Watsjold family. She also wanted to express sorrow of the recent shootings in Tucson. She appreciated that the council could disagree on issues but leave it at that. Bardarson thanked PACAB for their hard work `for the work they put into the code revisions. The Polar Bear Jumpoff Festival was January l st , 22'a, and 23 � ,`�, emoted the money raised stayed here in the Peninsula. Bardarson also ` condolences to the Watsjold family. Valdatta spoke on the award for fluoride tonight<and that, there were new studies that they 4fi should reduce the amount of fluoride. He voted no on the property tax because he was against it and there should be a tobacco tax instead. Dunham also extended condolences 'to the: Watsjold family. He was a great person and Dunham knew him for 67 years. He served the community as a council member and was active in the community, and was involved in the fire department for many, many years. January 16, 2011 was the Alaska Sealife Center Marine Gala. The speaker and guest of honor was a National Geographic photographer He urged =the comma. ity to attend. He was getting ready to go to Juneau and DC for lobbying *Alt ates fl encouraged those with issues to let the members traveling know what they ere. = D unham noted a program coming on energy use and consumption on how to become more energy efficient ` Electric Utility Manager John Foutz stated it was a grant program from Alaska Energy Authority who received federal grant dollars to hand out throughout the state. Ke also thanked Dale Butts for stepping up on the P &Z Commission. She would continue to encourage applications for the commission at each meeting until it was full. The Legislative Information office was open for business and Keil was Seward's officer. CITIZENS' COMMENTS Patty Linville said in the 80's she drove to Moose Pass for her teaching job and one day her car flipped over. Oscar Watsjold was a bus driver and provided assistance and took her to school that day. He was a jewel, Linville said. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - ADJOURNMENT The meeting was adjourned at 8:20 p.m. 103\ City Council Minutes City of Seward, Alaska January 10, 2011 Volume 38, Page Johanna Kinney, CMC Willard E. Dunham City Clerk Mayor (City Seal) e V� CITY OF SEWARD, ALASKA APPLICATION FOR THE SEWARD PLANNING & ZONING COMMISSION NAME: C a W. �' ea, 6 t 1 U - / _ STREET ADDRESS: �J J P Lv. � Aft= JAN 0 6 2011 MAILING ADDRESS: P. 0. Ar, </� �� € ,-r i HOME TELEPHONE: e 4/ — S 9 ' BUSINESS PHONE: cLE p EMAIL ADDRESS: �} U YZ �/ C� C C / , /ZJ E HOW LONG IN THE CITY LIMITS OF SEWARD: 3 % s (� / ,v /c}. e�> PRESENTLY EMPLOYED AS: AC, ,; 2e' List any special training, education or background you have which may help you as a member of the Commission: , - - e,s ; .v l r, ,Z./; c ` S 1 ‘ /DM-. ) 4 w ( M i. G r!n cz -r /41 y S / _ • Have you ever developed real property (other than your own personal residence)? If so, briefly describe the development: A.-) o , I am specifically interested in serving on the Planning and Zoning commission because: / i- ,b P d P m c/1 J Nl y C y w, s��r « T l Y Have you ever served on a similar commission somewhere else? / ,, , Q P S4 c ± v e If so, where and when'? - - , J r • - 1� ' . tQe` d r `v is les loc,c_ /dal w e. /,v / e PoS , Are you available for meetings Tuesday evenings? ki e S If appointed, are you willing to travel Often x' Occasionally Rarely Never I j Signature Date t d`-� AGENDA STATEMENT Meeting Date: January 24, 2011 � of ses 4% 411h From: Johanna Kinney, City Clerk lr 6 , Agenda Item: Non - objection to the Liquor License Renewal 414 - for the American Legion, Christo's Palace, and • the Ivory Cove. BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the request for a liquor license renewal for the American Legion, Christo's Palace, and the Ivory Cove. The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license renewal for these businesses. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license renewals, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non - objection to the Beverage Dispensary Liquor License renewal for the American Legion, Christo's Palace, and the Ivory Cove. \ D� KENA/ PENINSULA BOROUGH 1 1 44 North Binkley Street • Soldotna, Alaska 99669 -7520 PHONE: (907) 714 -2160 • FAX: (907) 714 -2388 Toll -free within the Borough: 1- 800 - 478 -4441 Ext. 2160 Email: assemblyc ierk ©borough.kenai.ak.us JOHNI BLANKENSHIP BOROUGH CLERK January 13, 2011 Ms. Shirley Gifford, Director Alcoholic Beverage Control Board 5848 E. Tudor Road Anchorage, Alaska 99507 -1286 RE: Non - Objection of License Renewal Business Name American Legion #5 License Type Club License Location • City of Seward License No. • 53 Dear Ms. Gifford, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please don't hesitate to let us know. Sincerely, 11 Johni Blankenship, CMC Borough Clerk JB /klr cc: Applicant City of Seward KPB Finance Department File KENAI PENINSULA BOROUGH 144 North Binkley Street • Soldotna, Alaska 99669 -7520 PHONE: (907) 714 -2160 • FAX: (907) 714 -2388 Toll -free within the Borough: 1- 800 - 478 -4441 Ext. 2160 Email: assemblyclerk @borough.kenai.ak.us JOHNI BLANKENSHIP BOROUGH CLERK January 13, 2011 Ms. Shirley Gifford, Director Alcoholic Beverage Control Board 5848 E. Tudor Road Anchorage, Alaska 99507 -1286 RE: Non - Objection of License Renewal Business Name The Ivory Cove License Type Beverage Dispensary License Location City of Seward License No. 4689 Dear Ms. Gifford, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please don't hesitate to let us know. Sincerely, Johni Blankenship, CMC Borough Clerk .IB /klr cc: Applicant City of Seward KPB Finance Department File 1 0� KENAI PENINSULA BOROUGH 144 North Binkley Street • Soldotna, Alaska 99669 -7520 PHONE: (907) 714 -2160 • FAX: (907) 714 -2388 Toll -free within the Borough: 1- 800 - 478 -4441 Ext. 2160 Email: assemblyclerk ©borough.kenai.ak.us JOHNI BLANKENSHIP BOROUGH CLERK January 13, 2011 Ms. Shirley Gifford, Director Alcoholic Beverage Control Board 5848 E. Tudor Road Anchorage, Alaska 99507 -1286 RE: Non - Objection of License Renewal Business Name Christo's Place License Type Beverage Dispensary License Location City of Seward License No. 822 Dear Ms. Gifford, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please don't hesitate to let us know. Sincerely, ' Th Johni Blankenship, CMC Borough Clerk JB /klr cc: Applicant City of Seward KPB Finance Department File t 68 MEMORANDUM t o f ��� S � F� L Date: January 24, 2011 ° To: Kim Kowalski Rogers, Finance — Leases Kari Atwood, Finance — Public Utilities Chief Tom Clemons — Police Department Chief David Squires — Fire Department From: Johanna Kinney, City Clerk Subj: Verifying Compliance for the renewal application of club liquor license for American Legion #5. The following business has applied for a renewal of their seasonal beverage dispensary liquor license. Please review the following business for compliance with all utilities, lease payments, and assessments. Thank you! Name Department Status Initials American Legion #5 American Legion Club Post #5 Finance/Leases Finance/Utilities Police Chief zig (__- -- Fire Chief O p`\ MEMORANDUM o sett. Date: January 24, 2011 To: Kim Kowalski Rogers, Finance — Leases 9LASKP Kari Atwood, Finance — Public Utilities Chief Tom Clemons — Police Department Chief David Squires — Fire Department From: Johanna Kinney, City Clerk Subj: Verifying Compliance for the renewal application of tourism beverage dispensary liquor license for The Ivory Cove. The following business has applied for a renewal of their seasonal beverage dispensary liquor license. Please review the following business for compliance with all utilities, lease payments, and assessments. Thank you! Name Department Status Initials The Ivory Cove, #4689 The Kishan Group, Inc. Finance/Leases C1i--- Finance/Utilities Police Chief j4 Fire Chief 0 k MEMORANDUM r p ,rl q 'Q Date: January 24, 2011 gtASrkP To: Kim Kowalski Rogers, Finance — Leases Kari Atwood, Finance — Public Utilities Chief Tom Clemons — Police Department Chief David Squires — Fire Department From: Johanna Kinney, City Clerk Subj: Verifying Compliance for the renewal application of beverage dispensary liquor license for Christo's Palace. The following business has applied for a renewal of their seasonal beverage dispensary liquor license. Please review the following business for compliance with all utilities, lease payments, and assessments. Thank you! Name Department Status Initials Christo's Palace, #822 Manolakakis, Inc. Finance/Leases _ Finance/Utilities Police Chief 0 / Fire Chief ®1 �S 111 SEWARD Type: Beverage Dispensary - Tourism Lic #: 4689 DBA Name: The Ivory Cove Premise Address: 200 Fifth Ave. Owner: The Kishan Group, Inc. Mailing Address: 325 E Main Street, Fernley, NV 89408 Type: Beverage Dispensary Lic #: 822 DBA Name: Christo's Palace Premise Address: 133 Fourth Avenue Owner: Manolakakis Inc Mailing Address: PO Box 830, Seward 99664 Type: Club Lic #: 53 DBA Name: American Legion #5 Premise Address: 402 Fifth Avenue Owner: American Legion Club Post #5 Mailing Address: Po Box 306, Seward 99664 SOLDOTNA Type: Club Lic #: 2217 DBA Name: V.F.W. Post #10046 Premise Address: 134 North Birch Lane Owner: Jerry V Horn Memorial Post # 10046 Mailing Address: 134 North Birch Lane, Soldotna 99669 OUTSIDE CITY LIMITS Type: Beverage Dispensary Lic #: 4254 DBA Name: LynDav Waterhole Premise Address: 33508 Lincoln Ave. Owner: David & Lynn Hettick Mailing Address: 33508 Lincoln Ave., Seward 99664 • CITY OF SEWARD Budgeted Summary Revenue and Expense /Expenditure by Fund For the Month Ending November, 2010 (Through November, 2010, 91.7% of the year has expired) Through November Annual Actual YTD Budget Annual Si of 2009 2010 Variance Budget Variance Budget Budget Revenue General Fund $ 7,423,711 $ 9,082,408 $ 1,658,697 $ 8,666,484 $ 415,924 $ 9,454,346 96.1% Small Boat Harbor Enterprise Fund $ 2,668,761 $ 2,833,213 $ 164,452 $ 2,668,120 $ 165,093 $ 2,910,676 97.3% Parking Enterprise Fund $ 162,640 $ 193,543 $ 30,903 $ 149,829 $ 43,714 $ 163,450 118.4% S.M.I.C. Enterprise Fund $ 918,419 $ 773,658 $ (144,761) $ 739,489 $ 34,169 $ 806,715 95.9% Electric Fund $ 9,177,035 $ 8,830,338 $ (346,697) $ 10,915,091 $ (2,084,753) $ 11,907,372 74.2% Water Enterprise Fund $ 969,602 $ 1,017,207 $ 47,605 $ 1,005,611 $ 11,596 $ 1,097,030 92.7% Wastewater Enterprise Fund $ 923,749 $ 973,709 $ 49,960 $ 963,296 $ 10,413 $ 1,050,868 92.7% Expenses General Fund General Government Mayor and Council $ 260,624 $ 285,265 $ 24,641 $ 298,061 $ 12,796 $ 362,468 78.7% General Fund Legal 88,286 144,200 55,914 $ 138,417 (5,783) 151,000 95.5% City Manager 926,531 796,614 (129,917) $ 930,723 134,109 1,015,334 78.5% City Clerk 212,598 216,697 4,099 $ 236,770 20,073 258,294 83.9% Finance Administration 558,786 550,600 (8,186) $ 620,725 70,125 677,154 81.3% General Services 75,530 81,394 5,864 $ 93,408 12,014 101,900 79.9% Contributions 312,721 239,002 (73,719) $ 219,085 (19,917) 239,002 100.0% Total General Government $ 2,435,076 $ 2,313,772 (121,304) $ 2,537,188 223,416 $ 2,805,152 82.5% Public Safety Police Department 2,052,148 2,090,325 38,177 $ 2,208,628 118,303 2,409,412 86.8% Fire Department 507,282 508,944 1,662 $ 577,859 68,915 630,392 80.7% Engineer /Utility Manager 36,444 - (36,444) - - - 0.0% Building Inspection 84,896 93,470 8,574 $ 109,959 16,489 119,955 77.9% Total Public Safety $ 2,680,770 $ 2,692,739 $ 11,969 $ 2,896,446 203,707 $ 3,159,759 85.2% Public Works Roads and Streets 790,766 686,053 (104,713) $ 1,139,935 453,882 1,243,565 55.2% City Shop 303,233 418,544 115,311 $ 346,175 (72,369) 377,645 110.8% Municipal Building 269,021 222,102 (46,919) $ 271,513 49,411 296,196 75.0% Total Public Works $ 1,363,020 $ 1,326,699 $ (36,321) $ 1,757,622 430,923 $ 1,917,406 69.2% Parks & Recreation $ 1,095,656 $ 1,067,245 $ (28,411) $ 1,112,501 $ 45,256 $ 1,213,637 87.9% Library $ 363,052 $ 347,073 $ (15,979) $ 368,445 $ 21,372 $ 401,940 86.3% Debt Service $ 549,284 $ 548,936 $ (348) $ 766,039 $ 217,103 $ 835,679 65.7% Total General Fund $ 8,486,858 $ 8,296,464 $ (190,394) $ 9,438,241 $ 1,141,777 $ 10,333,573 80.3% Small Boat Harbor Enterprise Fund $ 3,357,345 $ 3,251,694 $ (105,651) $ 3,504,706 $ 253,012 $ 3,823,316 85.0% Parking Enterprise Fund $ 159,209 $ 186,355 $ 27,146 $ 439,116 $ 252,761 $ 479,036 38.9% S.M.I.C. Enterprise Fund $ 965,029 $ 889,771 $ (75,258) $ 929,556 $ 39,785 $ 1,014,061 87.7% Electric Fund $ 9,977,872 $ 9,294,431 $ (683,441) $ 10,571,762 $ 1,277,331 $ 11,532,831 80.6% Water Enterprise Fund $ 871,868 $ 929,850 $ 57,982 $ 1,416,443 $ 486,593 $ 1,545,211 60.2% Wastewater Enterprise Fund $ 1,104,362 $ 1,011,688 $ (92,674) $ 1,075,267 $ 63,579 $ 1,173,019 86.2% As of 01/19/11 1 k/ 12/16/2010 9:47 AM Run Date - 12/16/10 @ 9:47 AM Providence Health & Services DET_OPS 110 - MGD - PROV SEWARD MED CTR Detail Statement of Operations (in Thousands) Reported as of November 2010 % Variance % Variance Last Year % Variance Actual MTD Budget MTD MTD Actual YTD Budget YTD YTD Actual YTD YTD Gross Service Revenues: 181 107 69.2% Acute Care - Inpatient 1,771 1,198 47.8% 1,276 38.8% 477 511 (6.7 %) Acute Care - Outpatient 5715 5,969 (4.3 %) 5,571 2.6% 137 133 3.0% Primary Care 1,586 1,474 7.6% 1,447 9.6% 798 854 (6.6 %) Long -term Care 8,763 9,074 (3.4 %) 6,016 45.7% - - - Homecare & Hospice - - - (21) - - - - Housing & Assist. Living - - - - - 1,593 1,605 (0.7 %) Total Gross Service Revenues 17,835 17,715 0.7% 14,289 24.8% Revenue Deductions: 1 16 93.8% Charity Care 203 183 (10.9 %) 195 (4.1%) 56 114 50.9% Medicare & Medicaid 891 1,287 30.8% 701 (27.1 %) (7) 4 275.0% Negotiated Contracts 72 46 (56.5 %) 59 (22.0 %) 39 361 89.2% Other 425 4,000 89.4% 1,076 60.5% 89 495 82.0% Total Deductions 1,591 5,516 71.2% 2,031 21.7% 1,504 1,110 35.5% Net Service Revenue 16,244 12,199 33.2% 12,258 32.5% - - - Premium Revenue - - - - - Rental and Education Revenue 8 8 0.0% Other Operating Revenue 318 85 274.1% 101 214.9% r 1,512 1,118 35.2% Total Net Operating Revenues 16,562 12,284 34.8% 12,359 34.0% _ - Expenses from Operations: - - Purchased and Healthcare Expenses - - - - - Other Expenses from Operations: 724 616 (17.5 %) Salaries & Wages 7,614 6,899 (10.4 %) 6,824 (11.6 %) 215 186 (15.6 %) Employee Benefits 2,217 2,050 (8.1 %) 1,949 (13.8 %) 1 4 75.0% Professional Fees 76 45 (68.9 %) 57 (33.3 %) 79 68 (16.2 %) Supplies 844 738 (14.4 %) 725 (16.4 %) 195 209 6.7% Purchased Service 1,915 2,314 17.2% 1,736 (10.3 %) 2 2 - Depreciation 20 20 - 20 - - - - Interest and Amortization 5 - - 13 61.5% 112 64 (75.0 %) Bad Debts 928 741 (252%) 658 (41.0 %) - Healthcare Taxes - - - - - 49 8 (512.5 %) Other Expenses (16) 86 118.6% 994 101.6% 1,377 1,157 (19.0 %) Total Other Exp from Operations 13,603 12,893 (5.5 %) 12,976 (4.8 %) 1,377 1,157 (19.0 %) Total Operating Expenses 13,603 12,893 (5.5 %) 12,976 (4.8 %) 135 (39) 446.2% Excess of Rev Over Exp from OPS 2,959 (609) 585.9% (617) 579.6% 1 - Non - Operating Gain (Loss) - 10 - 1 - 135 (38) 455.3% Excess of Revenues Over Expenses 2,959 (599) 594.0% (616) 580.4% Other Activity-Unrestricted (2,764) 500 (652.8 %) Increase (Decrease) in UR Net Assets 195 (116) 268.1% 1 12/16/2010 9:47 AM PRELIM - Run Date - 12/16/10 @ 9:47 AM Providence Health & Services BAL_SHT 110 - MGD - PROV SEWARD MED CTR Balance Sheet (in Thousands) Reported as of November 2010 November 2010 December 2009 November 2010 December 2009 Actual Last Year Actual Last Year ASSETS LIABILITIES & NET ASSETS Current Assets: Current Liabilities: Cash and Cash Equivalents (377) 758 Accounts Payable 201 185 System Pooled Cash - - Accrued Compensation 760 807 Mgmt Designated Cash & Cash Equiv. - - Affiliates Payable - - Short Term Investments - - Payable to Contractual Agencies 196 102 Assets Held Under Securities Lending - - Deferred Revenue /Unearned Premiums 30 31 Accounts Receivable, Net 2,056 1,762 Liability for Unpaid Medical Claims - - Affiliate Receivable - - Liability for Risk- Sharing - - Premiums Receivable - - Liabilities Under Securities Lending - - Other Receivables 51 99 Other Current Liabilities 1,199 1,877 Supplies Inventory at Cost - - Short-Term Debt - - ` Other Current Assets 9 18 Current Portion of Long -Term Debt - - A Current Port. of Assets -Use is LTD - - Total Current Liabilities 2,386 3,002 Total Current Assets 1,739 2,637 Assets Whose Use is Limited: Long-Term Debt: Mgmt Designated Cash and Investments - - Master Trust Debt - - Funds Held for Long -term Purposes 481 128 Loans from Affiliates - - Gift Annuity and Trust Funds - - Other - - Funds Held by Trustees - Long -Term Debt - - Non-Current Assets Limited as to Use 481 128 Property, Plant & Equipment: Other Long -Term Liabilities 70 188 Gross Property, Plant & Equipment 107 107 Less: Accumulated Depreciation (73) (53) Total Liabilities 2,456 3,190 Net Property, Plant & Equipment 34 54 Net Assets: Other Assets: Unrestricted (176) (371) Unamortized Financing Cost - - Temporarily Restricted 3 - Interaffiliate Notes Receivable - - Permanently Restricted - - Other (Incl. Long -term Investments) 29 - Total Net Assets (173) (371) Total Other Assets 29 - Total Liabilities and Net Assets 2,283 2,819 Total Assets 2,283 2,819 8 11/29/2010 3:45 PM Run Date - 11/29/10 @ 3:45 PM Providence Health & Services DET_OPS 110 - MGD - PROV SEWARD MED CTR Detail Statement of Operations (in Thousands) Reported as of October 2010 % Variance % Variance Last Year % Variance Actual MTD Budget MTD MTD Actual YTD Budget YTD YTD Actual YTD YTD Gross Service Revenues: 155 110 40.9% Acute Care-Inpatient 1,591 1,092 45.7% 1,228 29.6% 424 546 (22.3 %) Acute Care - Outpatient 5,237 5,457 (4.0 %) 5,180 1.1% 103 133 (22.6 %) Primary Care 1,449 1,341 8.1% 1,326 9.3% 833 881 (5.4 %) Long -term Care 7,965 8,220 (3.1%) 5,358 48.7% - Homecare & Hospice - - - (21) - - - - - - Housing & Assist. Living - - - - - 1,515 1,670 (9.3 %) Total Gross Service Revenues 16,242 16,110 0.8% 13,071 24.3% Revenue Deductions: 9 17 47.1% Charity Care 202 167 (21.0 %) 174 (16.1%) 80 119 32.8% Medicare & Medicaid 836 1,173 28.7% 574 (45.6 %) (3) 4 175.0% Negotiated Contracts 79 42 (88.1%) 60 (31.7 %) 52 364 85.7% Other 385 3,639 89.4% 838 54.1% 138 504 72.6% Total Deductions 1,502 5,021 70.1% 1,646 8.7% 1,377 1,166 18.1% Net Service Revenue 14,740 11,089 32.9% 11,425 29.0% - - - Pre mium Revenue - - - - - - - - - - Rental and Education Revenue 2 8 (75.0 %) Other Operating Revenue 310 77 302.6% 58 434.5% 1,379 1,174 17.5% Total Net Operating Revenues 15,050 11,166 34.8% 11,483 31.1% r Expenses from Operations: - - - Purchased and Healthcare Expenses - - - - - Other Expenses from Operations: 756 640 (18.1 %) Salaries & Wages 6,891 6,282 (9.7 %) 6,191 (11.3 %) 220 186 (18.3%) Employee Benefits 2,001 1,864 (7.3 %) 1,740 (15.0 %) 8 4 (100.0 %) Professional Fees 75 41 (82.9 %) 46 (63.0 %) 66 68 2.9% Supplies 765 670 (14.2 %) 658 (16.3%) 175 210 16.7% Purchased Service 1,719 2,105 18.3% 1,556 (10.5 %) 2 2 - Depreciation 18 18 - 18 - - - - Interest and Amortization 5 - - 13 61.5% 104 68 (52.9 %) Bad Debts 816 677 (20.5 %) 649 (25.7%) - - - Healthcare Taxes - - - 73 8 (812.5 %) Other Expenses (64) 79 181.0% 707 109.1% 1,404 1,186 (18.4 %) Total Other Exp from Operations 12,226 11,736 (4.2 %) 11,578 (5.6 %) 1,404 1,186 (18.4 %) Total Operating Expenses 12,226 11,736 (4.2 %) 11,578 (5.6 %) (25) (12) (108.3 %) Excess of Rev Over Exp from OPS 2,824 (570) 595.4% (95) 3,072.6% - 1 - Non - Operating Gain (Loss) - 9 - 1 - (25) (11) (127.3 %) Excess of Revenues Over Expenses 2,824 (561) 603.4% (94) 3,104.3% Other Activity-Unrestricted (2,517) 501 (602.4 %) Increase (Decrease) in UR Net Assets 307 407 (24.6 %) 1 11/29/2010 3:45 PM PRELIM - Run Date - 11/29/10 @ 3:45 PM Providence Health & Services BAL_SHT 110 - MGD - PROV SEWARD MED CTR Balance Sheet (in Thousands) Reported as of October 2010 October 2010 December 2009 October 2010 December 2009 Actual Last Year Actual Last Year ASSETS LIABILITIES & NET ASSETS Current Assets: Current Liabilities: Cash and Cash Equivalents (156) 758 Accounts Payable 219 185 System Pooled Cash - - Accrued Compensation 694 807 Mgmt Designated Cash & Cash Equiv. - - Affiliates Payable - - Short Term Investments - - Payable to Contractual Agencies 37 102 Assets Held Under Securities Lending - - Deferred Revenue /Unearned Premiums - 31 Accounts Receivable, Net 1,976 1,762 Liability for Unpaid Medical Claims - - Affiliate Receivable - - Liability for Risk- Sharing - - Premiums Receivable - - Liabilities Under Securities Lending - - Other Receivables 5 99 Other Current Liabilities 1,440 1,877 Supplies Inventory at Cost - - Short-Term Debt - - Other Current Assets 15 18 Current Portion of Long -Term Debt - - Current Port. of Assets -Use is LTD - - Total Current Liabilities 2,390 3,002 Total Current Assets 1,840 2,637 Assets Whose Use is Limited: Lona -Term Debt: Mgmt Designated Cash and Investments - - Master Trust Debt - - Funds Held for Long -term Purposes 495 128 Loans from Affiliates - - Gift Annuity and Trust Funds - - Other - - Funds Held by Trustees - - Long -Term Debt - - Non-Current Assets Limited as to Use 495 128 Property, Plant & Equipment: Other Long -Term Liabilities 71 188 Gross Property, Plant & Equipment 107 107 Less: Accumulated Depreciation (71) (53) Total Liabilities 2,461 3,190 Net Property, Plant & Equipment 36 54 Net Assets: Other Assets: Unrestricted (64) (371) Unamortized Financing Cost - - Temporarily Restricted 3 - Interaffiliate Notes Receivable - - Permanently Restricted - - Other (Incl. Long -term Investments) 29 - Total Net Assets (61) (371) Total Other Assets 29 - Total Liabilities and Net Assets 2,400 2,819 Total Assets 2,400 2,819 8 J anuary 2011 January 2011 February 2011 SuMo TuWe Th Fr Sa o TuWe Th Fr Sa 1 1 2 3 4 5 2 3 4 5 6 7 8 6 7 8 9 10 11 12 9 10 11 12 13 14 15 13 14 15 16 17 18 19 16 17 18 19 20 21 22 20 21 22 23 24 25 26 23 24 25 26 27 28 29 27 28 30 31 Monday 1 Tuesday Wednesday I Thursday Y Friday Jan 3 4 5 6 7 7:30pm P &Z Meeting; c 10 11 12 13 14 6:OOpm CC WS; AD Ho 12:OOpm Seward Comm 7:OOpm City Council M 0 17 18 19 120 21 12:OOpm PACAB Work 5 6:30pm Historic Preser N r-1 f0 24 25 26 .•• 27 28 7:OOpm City Council M 6:30pm P &Z Work Ses 7:00pm CC WS; KPB Cc 9:OOam Social Security CO N V N 31 Feb 1 2 3 4 cu n, Nanci Richey 1 1/19/2011 2:30 PM `Q Q February 2011 March 2011 February 2 SuMo TuWe Th Fr. Sa SuMo TuWe Th Fr Sa 1 2 3 4 5_ 1 2 3 4 5 6 7 8 9 10 11 12 6 7 8 9 10 11 12 13 14 15 16 17 18 19 13 14 15 16 17 18 19 _ 20 21 22 23 24 25 26 20.21 22 23 24-25 26 27 28 27'28.29`3.0 -31 Monday Tuesday Wednesday Thursday Friday Jan 31 Feb 1 2 3 4 7:30pm P &Z Meeting 12:OOpm PACAB Meetin LL m fO 7 8 9 10 11 11:30am Seward CO Mm r Q v LL 14 H.: >.- ,,• .-. -� 15 16 17 18 /7:00 pm City Council M 6:30pm P &Z Work Ses 12:OOpm PACAB Work S 9:OOam Social Security ...�� —• 6:30pm Historic Preser co LL 21 22 23 24 25 President's` Day; Offici u, N LL 28 Mar 1 2 3 4 C :00pm City Council M N LL Nanci Richey 2 1/19/2011 2:30 PM \ 01