Loading...
HomeMy WebLinkAbout07232012 City Council Packet NNW Seward City Council Agenda Packet 1 •' r ` Obihiro Park — _ � � 1r.ri -: � J "' �- , 8 Gazebo -../." ' '-e".‘Citia',..' -■ ,...4 ., F 402 O - - „j ",..,- . 41 . N WI . N\ it. di . .. , t i 111111141 I I IIi bl illi11 1 'II 111C NIP I ow. 11 i Welcome 2012 Obihiro Guests July 23, 2012 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska !sue CITY COUNCIL MEETING AGENDA ° "� sNtt All-America CRY {Please silence all cellular phones and pagers during the meeting} July 23, 2012 7:00 p.m. Council Chambers 1. CALL TO ORDER David Seaward 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2013 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING [Those who have Jean Bardarson signed in will be given the first opportunity to speak. Time is limited Vice Mayor to 3 minutes per speaker and 36 minutes total time for this agenda Term Expires 2012 item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval Robert Valdatta of Consent Agenda passes all routine items indicated by asterisk ( *). Council Member Consent Agenda items are not considered separately unless a council Term Expires 2013 member so requests. In the event of such a request, the item is returned to the Regular Agenda] Christy Terry Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2013 A. Proclamations and Awards Vanta Shafer 1. Introduction Of Obihiro, Japan Exchange Students And Sister Council Member Cities Appreciation Week Proclamation P 4 Term Expires 2013 Marianna Keil B. Chamber of Commerce Report Council Member C. City Manager's Report Term Expires 2012 D. City Attorney's Report E. Mayor's Report Ristine Casagranda F. Other Reports and Presentations Council Member Term Expires 2012 James Hunt City Manager Johanna Kinney City Clerk Cheryl Brooking City Attorney City of Seward, Alaska Council Agenda July 23, 2012 Page 1 7. NEW BUSINESS A. Ordinances for Introduction *1. Non -Code Ordinance 2012 -007, Appropriating Funds To Make Expenditures Which 'N Could Influence The Outcome Of An Election Concerning A Ballot Proposition Addressing Exemption Of City Of Seward Municipal Elected And Appointed Officials From The Requirements Of Chapter 39.50 Of The Alaska Statutes, (State Of Alaska Public Official Financial Disclosure Law) In An Amount Not To Exceed $1,500 Pg.6 B. Resolutions *1. Resolution 2012 -051, Accepting A State Of Alaska Fy2013 Grant -In -Aid For $1,998.45 For The Purpose Of Purchasing Archival -Grade Packing Materials For The Seward Community Library Museum And Appropriating Funds ..Pg. 18 *2. Resolution 2012 -052, Supporting Kenai Peninsula Borough Ordinance 2012 -28, Amending Borough Code To Provide That All Seats Of The Seward -Bear Creek Flood Service Area Board Shall Be Filled By Residents Of The Service Area And Eliminating The Requirement That Four Of The Seats Be Residents Of The City Of Seward And Three Be Residents Of The Rest Of The Service Area .Pg. 24 *3. Resolution 2012 -053, Accepting A State Of Alaska Designative Legislative Grant To Renovate The Restrooms Located At The Harbormasters Building On 4 Avenue, In The Amount Of $130,000 And Appropriating Funds .Pg. 30 4. Resolution 2012 -054, Allocating Funds For Dredging And Required Site Preparation Work For Dredging The Small Boat Harbor Pursuant To The City's Agreement With The U.S. Army Corps Of Engineers And Authorizing The City Manager To Enter Into The Required Contract In The Amount Of $465,618 And To Rescind Resolution 2012 -035 Pg. 35 5. Resolution 2012 -055, Authorizing Construction Of A Seawall To Protect Underground Utilities Located At SMIC, In An Amount Not To Exceed $40,000 And Appropriating Funds Pg. 71 6. Resolution 2012 -056, Stating An Intent To Fund $490,000 For The Lowell Point And SMIC Lagoons Sludge Removal Project, Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To Accept A Loan Offer From The Alaska Clean Water Fund With Payments Subject To Bi- Annual Appropriation Pg. 74 7. Resolution 2012 -057, Authorizing The City Manager To Enter Into A Grant Agreement With The Alaska Department Of Environmental Conservation Municipal Matching Grant Program With A Total Award Of $2,508,000 For Phase II Of The North Seward Water Storage Tank And Pumping Facility Project, And Appropriating Funds Pg. 84 8. Resolution 2012 -058, Stating An Intent To Fund $400,000 For The Maple Street Sewer Line Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To Enter City of Seward, Alaska Council Agenda July 23, 2012 Page 2 Into A Loan Agreement With The Alaska Drinking Water Fund With Annual Payments Not To Exceed $24,000, And Subject To Annual Appropriation Pg. 90 C. Other New Business Items �1�rr►° *1. Approval of the July 9, 2012 City Council Regular Meeting Minutes ..Pg. 129 2. Vote and appoint three of the four applicants to the Port and Commerce Advisory Board with terms expiring July 2015. The applicants are Krystin Bablinskas, Darryl Schaefermeyer, Bruce Jaffa, and Steven Fink .Pg. 136 8. INFORMATIONAL ITEMS AND REPORTS (No Action Required) a. Letter from Senator Mark Begich, congratulating Seward on 100 years of incorporation.. .Pg. 141 b. Letter from the City of Kushiro, acknowledging 30` Anniversary of the signing of the Sister Port Agreement with the City of Seward.. Pg. 142 9. COUNCIL COMMENTS 10. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.] 11. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 12. ADJOURNMENT lkiapr City of Seward, Alaska Council Agenda July 23, 2012 Page 3 P ROCLAMATIO N WHEREAS, on November 20, 1967 the City of Seward passed a resolution to declartfti Obihiro, Japan as its Sister City; and WHEREAS, in March 1968 this Sister City relationship was officially recognized by Sister Cities International; and WHEREAS, since 1967 both communities have participated in many cultural exchanges which have deepened the relationship between our cities and our citizens and WHEREAS, since 1973 our communities have sponsored an annual student exchange involving high school students to experience each other's culture, lifestyles and families; and WHEREAS, this year Obihiro celebrates its 130 birthday and Seward celebrates its 100 year of incorporation as a city; and WHEREAS, the City of Seward welcomes four students from Obihiro for the 2012 exchange : Akari Yoneya, Momoko Veda, Yusuke Yabe, and Mizuho Yoshizawa; and WHEREAS, the city also welcomes Josh Neta, who has accompanied Obihiro's exchange students in his role a s the Coordinator of International Relations for the City of Obihiro for the past three years. NOW, THEREFORE, I, David Seaward, Mayor of the City of Seward, Alaska, do hereby proclaim the week ofJuly 23 -27, 2012 to be SEWARD — OBIH IRO SISTER CITY APPRECIATION WEEK Dated this 23rd Day of)uly, 2012. THE CITY OF SEWARD, ALASKA David seawarol, Mc J or Effi - 7, —h r i Ij. 1967 11 A 20 H Q)55petl _9, 72 LP$P mLtc o#,), 1968` 3A I`, NPOMAFE ,T, it P. JOz E Tqt o — , 1 967 b• ° - 1 2 r flr$ lt, t /qtd Xit3IZ T70, R oAAT — , 19731%),*, , ' , nVZERIE 1� lzck . E003Z1E • ; `i* . V zr *14MIVi# 130 A4RO, 7 - 5At IJ rA 7 —I-z' i1 T7100 45 0 *GA Zr7 —f: Uhit'LZnt51E∎M 0 *-16 _EE! SE L : fZL f_f`t- I ♦ — F-Li 1--1 C I 13 FI L tS Z * Ii1 • I :+ ENITS IZ �I L W) a i a 7 1 1-%a- ticcz fix. •EssJ — '7 -1`', 77 tJ' M Z'7 —K r, f j, Si1'Z, 20127 23 Q b•G27 1Z'I, x9 tentIMISIViargli 201 1' 7. 23 H' s Sponsored by: Hunt Introduction: July 23, 2012 Public Hearing: August 13, 2012 Enactment: August 13, 2012 CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2012 -007 A NON -CODE ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROPRIATING FUNDS TO MAKE EXPENDITURES WHICH COULD INFLUENCE THE OUTCOME OF AN ELECTION CONCERNING A BALLOT PROPOSITION ADDRESSING EXEMPTION OF CITY OF SEWARD MUNICIPAL ELECTED AND APPOINTED OFFICIALS FROM TIIE REQUIREMENTS OF CHAPTER 39.50 OF TIIE ALASKA STATUTES, (STATE OF ALASKA PUBLIC OFFICIAL FINANCIAL DISCLOSURE LAW) IN AN AMOUNT NOT TO EXCEED $1,500 WHEREAS, the Seward City Council enacted non -code ordinance on June 25, 2012 to submit Proposition #1 to the qualified voters at the October 2, 2012 regular municipal election to exempt the City of Seward municipal elected and appointed officials from the State of Alaska Public Official Financial Disclosure law requirements of Chapter 39.50; and WHEREAS, the Seward City Council passed Resolution 2012 -042 on June 25, 2012 which approved and adopted a new City of Seward Financial Disclosure form for all of its elected and appointed officials to take effect immediately upon passage of Proposition #1 at the municipal election held October 2, 2012; and WHEREAS, 2 AAC 50.356 and 2 AAC 50.360 allow for municipalities to seek budgeted municipal funds to influence the outcome of an election and require registering and reporting under AS 15.13.040 and AS 15.13.050; and WHEREAS, in order to educate the public in accordance with the provisions of 2 AAC 50.360(b), the City Council must appropriate funds since the education process may influence the outcome of an election; and WHEREAS, under AS 15.13.145, a municipality may not use money to influence the outcome of an election concerning a ballot proposition unless the funds have been specifically appropriated for that purpose by the elected body. NOW, TI-IEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby appropriates and authorizes expenditures in the amount not to exceed $1,500 from City Clerk election account number 101- 1130 -5720 and City Council promotion account number 101 -1110 -5730 for the purposes of educating the public about the pros and cons of exempting out of the State of Alaska Public Official Financial Disclosure Law, with the potential to influence the outcome of the election. CITY OF SEWARD, ALASKA NON -CODE ORDINANCE 2012 -007 Section 2. The City Council further directs and authorizes the City Manager and other City officers, officials, and employees, as may be appropriate, to register with the Alaska Public Offices Commission and to complete and file all necessary reports, forms, and notices relating to election - related expenditures under AS 15.13, or as may otherwise be required by law. Section 3. This ordinance shall take effect ten (10) days following enactment. ENACTED by the City Council of the City of Seward, Alaska, this 13 day of August, 2012. TIIE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney City Clerk (City Seal) 1 Council Agenda Statement Meeting Date: July 23, 2012 4 of sE� k C :k To: Mayor Seaward, City Council Members 4 gy p' From: Johanna Kinney, City Clerk mir Agenda Item: Expend funds to influence outcome of an election RE: APOC reporting requirements BACKGROUND & JUSTIFICATION: The Alaska Legislature has statutory provisions relating to the disclosure and reporting of financial and business interests of public officials, which includes municipal elected and appointed officials. Elected and appointed officials are defined as the city manager, candidates and seated Mayor and City Council members and Seward Planning & Zoning Commissioners. Those statutory provisions are applicable unless a majority of qualified voters at a general election, vote to exempt from the requirements of those statutory provisions. By approval of non -code Ordinance 2012 -006 on June 25, 2012 and Resolution 2012 -042 on June 25, 2012, the city council has voted that it wishes to exempt out of the requirements of AS 39.50; the State of Alaska Public Official Financial Disclosure Law and adopt its own set of financial disclosure and conflict of interest laws, thus turning the question over to the qualified voters of the community. Any disseminated information distributed on this matter could be seen as an intention to influence the outcome of an election. The City is allowed to prepare and distribute neutral materials to educate the public on the proposition before them. However, under AS 15.13.050 and 15.13.145, the City may not use money to influence the outcome of an election unless the City registers with the State, funds have been specifically appropriated for that purpose by the elected body, and the expenditures are reported to the Alaska Public Offices Commission. Since dissemination and postage would cost money, and the City may wish to educate the public on this matter, this non -code ordinance is needed to use budgeted municipal funds and follow the reporting requirements as stated in 2 AAC 50.360 and AS 15.13.140 -155. INTENT: To expend public funds for non - partisan ballot summary issues related to Proposition #1 which exempts the City of Seward elected and appointed officials from the State of Alaska Public Official Disclosure Law and could influence the outcome of the election. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): x Ned 2. Strategic Plan (document source here): x Other (list): City of Seward Non -Code Ordinance 2012 -006, City of 3 Seward Resolution 2012 -042, Cited State of Alaska Administrative Codes and Statutes referenced in this Ordinance and Agenda Statement x FISCAL NOTE: The amount of $1,500 is an estimate of possible expenses. Funding for this appropriation is available between the City Council promotion and City Clerk election budget. Approved by Finance Department: Sitie:::(A+ ATTORNEY REVIEW: Yes X No RECOMMENDATION: City Council introduce and enact Non -Code Ordinance 2012- 0 ��, appropriating funds for the purpose of possible expenditures to educate the public which could influence the outcome of an election concerning ballot proposition #1, which exempts the City of Seward from the State of Alaska Public Officials Disclosure Law and adopts its own form and guidelines upon passage. Nor, Title 2 . Administration Chapter 50 . Public Information NiuritO Section 356. Use of public money 2 AAC 50.356. Use of public money (a) Funds are specifically appropriated for the purposes of AS 15.13.145 (b) if the appropriating body provides notice on the public record that the funds will be used to influence the outcome of an election. (b) In the absence of a specific appropriation, an officer or employee of an entity who is identified in AS 15.13.145 (a)(4) may use money held by that entity to communicate about a ballot proposition or question if the communication is made in the usual and customary performance of the officer's or employee's duties. (c) For the purposes of AS 15.13.145 (c)(2), information is nonpartisan if it does not advocate a position in an election. Nonpartisan information includes the official language of a ballot question, a neutral ballot summary, or if provided for all candidates seeking a particular office, the candidates' names, contact information, or statements. (d) If an entity or individual identified in AS 15.13.145 (a)(1) -(4) uses money held by the entity to make an election- related expenditure, the expenditure must be disclosed on a report of contributions or independent expenditures underAS 15.13.040 (d) and (e) unless the expenditure is made only to disseminate information about the time and place of an election or to hold an election. History: Eff. 1/1/2001, Register 156 Authority: AS 15.13.010 AS 15.13.030 AS 15.13.145 Title 2 . Administration Chapter 50 . Public Information Section 360. Municipalities 2 AAC 50.360. Municipalities (a) If a municipality seeks to influence the outcome of an election, using budgeted municipal funds, it shall report as an individual under AS 15.13.040 (d) and (e). (b) All communications which are paid for by a municipality and which are related to an election are considered to be intended to influence the outcome of an election unless they are only notices of the election or unless they are required by statute, charter, or ordinance. (c) The municipality shall file with the commission a list of candidates and their mailing addresses within seven days following the deadline for filing for municipal office. (d) If a municipality seeks to influence the outcome of an election using funds contributed to it for that purpose, it shall register and report as a group under AS 15.13.040 (b) and (c) and AS 15.13.050 . History: Eff. 5/16/76, Register 58; am 1/4/86, Register 97; am 8/22/97, Register 143 Authority: AS 15.13.010 AS 15.13.030 AS 15.13.040 AS 15.13.050 AS 15.13.090 1 l Alaska Statutes. Title 15. Elections Chapter 13. State Election Campaigns Ntiod Section 40. Contributions, Expenditures, and Supplying of Services to Be Reported. previous: Section 30. Duties of the Commission. next: Section 45. Investigations, Hearings. AS 15.13.040. Contributions, Expenditures, and Supplying of Services to Be Reported. (a) Except as provided in (g) and (1) of this section, each candidate shall make a full report, upon a form prescribed by the commission, (1) listing (A) the date and amount of all expenditures made by the candidate; (B) the total amount of all contributions, including all funds contributed by the candidate; (C) the name, r contributions i in address, excess of $250u n the aggregate during g contributor; calendaryearr, the (D) for i principal occupation and employer of the contributor; and (2) filed in accordance with AS 15.13.110 and certified correct by the candidate or campaign treasurer. (b) Each group shall make a full report upon a form prescribed by the commission, listing (1) the name and address of each officer and director; (2) the aggregate amount of all contributions made to it; and, for all contributions in excess of $100 in the aggregate a year, the name, address, principal occupation, and employer of the contributor, and the date and amount contributed by each contributor; for purposes of Ned this paragraph, "contributor" means the true source of the funds, property, or services being contributed; and (3) the date and amount of all contributions made by it and all expenditures made, incurred, or authorized by it. (c) The report required under (b) of this section shall be filed in accordance with AS 15.13.110 and shall be certified as correct by the group's treasurer. (d) Every individual, person, nongroup entity, or group making an expenditure shall make a full report of expenditures, upon a form prescribed by the commission, unless exempt from reporting. (e) The report required under (d) of this section must contain the name, address, principal occupation, and employer of the individual filing the report, and an itemized list of expenditures. The report shall be filed with the commission no later than 10 days after the expenditure is made. (f) During each year in which an election occurs, all businesses, persons, or groups that furnish any of the following services, facilities, or supplies to a candidate or group shall maintain a record of each transaction: newspapers, radio, television, advertising, advertising agency services, accounting, billboards, printing, secretarial, public opinion polls, or research and professional campaign consultation or management, media production or preparation, or computer services. Records of provision of services, facilities, or supplies shall be available for inspection by the commission. (g) The provisions of (a) and (1) of this section do not apply to a delegate to a constitutional convention, a judge seeking judicial retention, or a candidate for election to a municipal office under AS 15.13.010, if that delegate, judge, or candidate \ Z (1) indicates, on a form prescribed by the commission, an intent not to raise and not to expend more than $5,000 in seeking election to office, including both the primary and general elections; (2) accepts contributions totaling not more than $5,000 in seeking election to office, including both the primary and general elections; and (3) makes expenditures totaling not more than $5,000 in seeking election to office, including both the primary and general elections. (h) The provisions of (d) of this section do not apply to one or more expenditures made by an individual acting independently of any group or nongroup entity and independently of any other individual if the expenditures (1) cumulatively do not exceed $500 during a calendar year; and (2) are made only for billboards, signs, or printed material concerning a ballot proposition as that term is defined by AS 15.13.065(c). (i) The permission of the owner of real or personal property to post political signs, including bumper stickers, or to use space for an event or to store campaign - related materials is not considered to be a contribution to a candidate under this chapter unless the owner customarily charges a fee or receives payment for that activity. The fact that the owner customarily charges a fee or receives payment for posting signs that are not political signs is not determinative of whether the owner customarily does so for political signs. (j) Except as provided in (I) of this section, each nongroup entity shall make a full report in accordance with AS 15.13.110 upon a form prescribed by the commission and certified by the nongroup entity's treasurer, listing (1) the name and address of each officer and director of the nongroup entity; (2) the aggregate amount of all contributions made to the nongroup entity for the purpose of influencing the outcome of an election; (3) for all contributions described in (2) of this subsection, the name, address, date, and amount contributed by each contributor and, for all contributions described in (2) of this subsection in excess of $250 in the aggregate during a calendar year, the principal occupation and employer of the contributor; and (4) the date and amount of all contributions made by the nongroup entity, and, except as provided for certain independent expenditures in AS 15.13.135 (a), all expenditures made, incurred, or authorized by the nongroup entity, for the purpose of influencing the outcome of an election; a nongroup entity shall report contributions made to a different nongroup entity for the purpose of influencing the outcome of an election and expenditures made on behalf of a different nongroup entity for the purpose of influencing the outcome of an election as soon as the total contributions and expenditures to that nongroup entity for the purpose of influencing the outcome of an election reach $500 in a year and for all subsequent contributions and expenditures to that nongroup entity in a year whenever the total contributions and expenditures to that nongroup entity for the purpose of influencing the outcome of an election that have not been reported under this paragraph reach $500. (k) Every individual, person, nongroup entity, or group contributing a total of $500 or more to a group organized for the principal purpose of influencing the outcome of a proposition shall report the contribution or contributions on a form prescribed by the commission not later than 30 days after the contribution that requires the contributor to report under this subsection is made. The report must include the name, address, principal occupation, and employer of the individual filing the report and the amount of the contribution, as well as the total amount of contributions made to that group by that individual, person, nongroup entity, or group during the calendar year. (1) Notwithstanding (a), (b), and (j) of this section, for any fund - raising activity in which contributions are in amounts or values that do not exceed $50 a person, the candidate, group, or nongroup entity shall report contributions and expenditures and supplying of services under this subsection as follows: (1) a report under this subsection must (A) describe the fund - raising activity; (B) include the number of persons making contributions and the total proceeds from the activity; (C) report all contributions made for the fund - raising activity that do not exceed $50 a person in amount or value; if a contribution for the fund - raising activity exceeds $50, the contribution shall be reported under (a), (b), and (j) of this section; (2) for purposes of this subsection, (A) "contribution" means a cash donation, a purchase such as the purchase of a ticket, the purchase of goods or services offered for sale at a fund - raising activity, or a donation of goods or services for the fund - raising activity; (B) "fund- raising activity" means an activity, event, or sale of goods undertaken by a candidate, group, or nongroup entity in which contributions are $50 a person or less in amount or value. (m) Information required under this chapter shall be submitted to the commission electronically, except that the following information may be submitted in clear and legible black typeface or hand - printed in dark ink on paper in a format approved by the commission or on forms provided by the commission: (1) information submitted by a candidate for municipal office; in this paragraph, "municipal office" means the office of an elected borough or city (A) mayor; or (B) assembly, council, or school board member; (2) any information if the commission determines that circumstances warrant an exception to the electronic submission requirement; (3) information submitted by a candidate for election to state office other than the legislature who meets the requirements of (g)(1) - (3) of this section; (4) information submitted before January 1, 2009, by a candidate for the legislature. (n) The commission shall print the forms to be provided under this chapter so that the front and back of each page have the same orientation when the page is rotated on the vertical axis of the page. (o) Information required by this chapter that is submitted to the commission on paper and not electronically shall be electronically scanned and published on the Internet by the commission, in a format accessible to the general public, within two working days after the commission receives the information. (p) For purposes of (b) and (j) of this section, "contributor" means the true source of the funds, property, or services being contributed. Nod 1Lk Alaska Statutes. Title 15. Elections Chapter 13. State Election Campaigns Section 50. Registration Before Expenditure. previous: Section 45. Investigations, Hearings. next: Section 60. Campaign Treasurers. AS 15.13.050. Registration Before Expenditure. (a) Before making an expenditure in support of or in opposition to a candidate or before making an expenditure in support of or in opposition to a ballot proposition or question, each person other than an individual shall register, on forms provided by the commission, with the commission. (b) If a group intends to support only one candidate or to contribute to or expend on behalf of one candidate 33 1/3 percent or more of its funds, the name of the candidate shall be a part of the name of the group. If the group intends to oppose only one candidate or to contribute its funds in opposition to or make expenditures in opposition to a candidate, the group's name must clearly state that it opposes that candidate by using a word such as "opposes," "opposing," "in opposition to," or "against" in the group's name. Promptly upon receiving the registration, the commission shall notify the candidate of the group's organization and intent. A candidate may register more than one group to support the candidate; however, multiple groups controlled by a single candidate shall be treated as a single group for purposes of the contribution limit in AS 15.13.070 (b)(1). * rr Alaska Statutes. Title 15. Elections Chapter 13. State Election Campaigns Section 145. Money of the State and Its Political Subdivisions. previous: Section 140. Independent Expenditures For or Against Ballot Proposition or Question. next: Section 150. Election Educational Activities Not Prohibited. AS 15.13.145. Money of the State and Its Political Subdivisions. (a) Except as provided in (b) and (c) of this section, each of the following may not use money held by the entity to influence the outcome of the election of a candidate to a state or municipal office: (1) the state, its agencies, and its corporations; (2) the University of Alaska and its Board of Regents; (3) municipalities, school districts, and regional educational attendance areas, or another political subdivision of the state; and (4) an officer or employee of an entity identified in (1) - (3) of this subsection. (b) Money held by an entity identified in (a)(1) - (3) of this section may be used to influence the outcome of an election concerning a ballot proposition or question, but only if the funds have been specifically appropriated for that purpose by a state law or a municipal ordinance. (c) Money held by an entity identified in (a)(1) - (3) of this section may be used (1) to disseminate information about the time and place of an election and to hold an election; (2) to provide the public with nonpartisan information about a ballot proposition or question or about all the candidates seeking election to a particular public office. (d) When expenditure of money is authorized by (b) or (c) of this section and is used to influence the outcome of an election, the expenditures shall be reported to the commission in the same manner as an individual is required to report under AS 15.13.040 . NIS 11 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING AN STATE OF ALASKA FY2013 GRANT -IN- AID FOR $1,998.45 FOR THE PURPOSE OF PURCHASING ARCHIVAL- GRADE PACKING MATERIALS FOR THE SEWARD COMMUNITY LIBRARY MUSEUM AND APPROPRIATING FUNDS WHEREAS, the Seward Community Library Museum was awarded the State of Alaska FY2013 Grant -in -Aid in the amount of $1,998.45; and WHEREAS, the Resurrection Bay Historical Society received the FY2012 Grant -in -Aid to purchase archival -grade packing materials; and WHEREAS, the funds will be used to purchase archival - quality packing materials to contribute to the progress of the move of museum objects into the new library museum facilities; and WHEREAS, the archival -grade materials will allow a more safe and secure transfer of objects. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TIIE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to enter into a grant agreement with the State of Alaska for purchasing archival materials, in substantial form as attached hereto. Section 2. Funding in the amount of $1998.45 is hereby accepted to the City of Seward grant revenues account 101 -0- 4680 -0200, and appropriated to library materials account no. 101 -1150 -5440. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of July, 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor Nvisid Council Agenda Statement Meeting Date: July 23, 2012 Sir 440. s Through: Jim Hunt, City Manager c?� From: Patricia Linville, Library Museum Director '� o Agenda Item: Accepting a State of Alaska FY2013 Grant -in -Aid in the amount $1998.45 and appropriating funds. BACKGROUND & JUSTIFICATION: The Seward Community Library has been awarded a State of Alaska FY2013 Grant -in -Aid in the amount $1998.45. This grant will be used to purchase archival -grade packing materials for the move to the new Seward Community Library Museum facilities. The Resurrection Bay Historical Society has previously received a State of Alaska FY2012 Grant -in -Aid which provided professional training to handle and pack museum objects, as well as purchasing initial packing materials for each packing station. The Seward Community Library Museum is preparing for a move to its new facility by the end of the 2012. Staff and volunteers are diligently packing up objects in the current museum facilities. In order to create a safe and secure transfer of objects from the old building to the new, proper packing materials are needed to ensure that this will happen. Archival -grade materials will help ensure that objects may remain in long -term storage before their exhibition. INTENT: Utilize grant funds received from the State of Alaska FY2013 Grant -in -Aid to purchase archival - grade packing materials. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): 3.7.1.2 & 3.7.3.2 X 2 Strategic Plan (document source here): Expand and integrate X educational programs pg. 18 3 Other (list): X ATTORNEY REVIEW: Yes No X FISCAL NOTE: Grant funding in the amount of $1998 will be appropriated to the library general supplies account. No match required. Approved by Finance Department id L RECOMMENDATION: Council approve Resolution 2012 - 0 accepting a State of Alaska L, FY2013 Grant -in -Aid and appropriating funds. amok f Sean Parnell, Governor Alaska State Museums 395 Whittier Department of Education & Early Develo ment Juneau. Alaska 99901 (907) 46b 2901 Division of Libraries, Archives & Museums (907) 465 -2976 Fax www museums. state ak.us Linda Thibodeau, Director July 1, 2012 Patricia Linville Sevvard Community Museum PO Box 2389 Seward, AK 99664 Dear Patty, We are pleased to inform you that your FY 2013 Grant -1n -Aid application has been funded in the amount of $1998.45. This amount funds the purchase of archival packing materials as requested in your application. The grant becomes effective upon the date of this grant award letter. Grant awards will be made in one lump sum payment, which will be issued in late August. However, previous recipients of GIA funds whose projects are still outstanding will not receive this gear's funding until the previous year's Final Accounting Report has cleared our accounting department. Important. Please read carefully. By accepting this award, your institution agrees to: 1. Request in writing (e -mail is acceptable) PRIOR to action, any significant changes m terms or conditions of the grant. (i.e., changes in a budget line item that exceeds 10% of that line item - -if the change is greater than 5200; changes of contractors, project director, etc.) Approval by the Alaska State Museum's Grant-In-Aid administrator must also he in writing, which may be by email. 2. Include the statement "'This project is supported by a Grant-In-Aid from the Alaska State Museum" in any promotional materials associated with the project. 3. Submit a Final Account Report postmarked on or before Sept. 30, 2013. 4. 'The State of Alaska is the source of funding for this agreement, as per 4 AAC 58.200-58.260. By accepting this award or agreement, the recipient may become subject 10 the audit requirements of Alaska Administrative Code 2 AAC 45.010. As a result, the recipient may be required to provide for an audit and to permit independent auditors to have access to their records and financial statements. The grantee should consult with an independent auditor for assistance in determining audit requirements for each fiscal year. Please call if you should 1}ave any questions. Congratulations! Sincerely, / — — Scott Carrlee Curator of Museum Services Alaska State Museums 1- 888 -913 -6873 O From: scott.carrleeCalalaska.gov To: Patricia Linville Subject: Mini Grant -In -Aid Application Date: Friday, June 01, 2012 3:52:29 PM The following information has been submitted to the Alaska State Museum. Submitted: 01- Jun -12 03:34 PM Organization Information Organization Name: Seward Community Library Museum Physical Address: 238 Fifth Avenue Seward, AK 99664 Mailing Address (if different): PO Box 2389 Director or Chief Administrator: Patricia Linville Phone: 907 - 224 -4082 Fax: 907- 224 -3521 Email: plinville @cityofseward.net website URL: http: / /www.cityofseward.net /library Months open: May, June, July, August, September, Annual visition: 4,664 Daily Open Hours Summer: 7 Winter: Upon Request Admission Charge: 3 Number of Employees Paid full -time: 0 Paid part -time: 3 volunteer Administration Staff: 1 Number of Members: 87 Number of non -staff volunteers: 21 Control of Institution Who governs your museum? City or Borough %by Who owns your collection? Non - profit organization .rr Who owns your building? City or Borough Who pays staff salary? City or Borough IRS tax ID number: 92- 6003019 Proposal Data 1. Amount Requested: $1,998.45 2. One -line proposal description: The staff and volunteers of Seward Community Library Museum are continuing to pack objects and archives in order to move them to a new facility at the end of 2012. 3. Person responsible for carrying out proposal: Amy Carney 4. What do you wish to do with this grant? This Grant in Aid of $2,000 will allow us to purchase archival -grade packing materials for our project. We need a variety of materials for our packing needs. These materials to be purchased from Gaylord will include 35 archival record storage cartons with lids ($9.50 each = $332.50), one acid -free unbuffered tissue paper rolls ($124.95 for 30" x 500' roll), five 2 -pack archival storage tubes ($129.45 for 6" diameter = $647.25), two 25 -pack archival corrugated boards ($213.15 for 30" x 40" = $427), ten coroplast boxes specimen boxes with lids and dividers ($12.99 for dividers, $16.99 for boxes = $299.80), two spools of 1/4" cotton twill tape ($15.00 each = $30), and 11 100 - pack artifact ID tags ($12.45 for 3/4" x 1" = $136.95). The total comes to $1998,45. Shipping will be compensated for by the Resurrection Bay Historical Society. Nod 5. Explain why you need this grant. Why is it a priority for your museum? This is a new year for the staff of the Seward Community Library Museum (SCLM). It is a time of transition and new responsibilities. Our biggest task at this time is preparing for our move and consolidation of the library and museum into one new facility. We have willing volunteers, but a strapped budget. Ten percent of our collection has been packed, thanks to several volunteers, last year's Grant -in -Aid funding, and a knowledgeable consultant. However, those packing supplies have almost run out. We have accepted generous amounts of boxes and other packing materials donated by the community, but these are only suitable for the move of objects ready for exhibit. We need to store many objects in archival -safe housing for long -term storage. 6. Are you using any other sources of funds or in -kind resources for this project? This project will involve several in -kind sources, which include the time of two SCLM staff, fifteen volunteers, and a part -time intern, based on the current packing status. SCLM staff salaries and benefits for part -time involvement with the museum totals $13,283. The intern hired for the summer via an Exxon Mobil grant will cost $2,500. In the current packing project, fifteen volunteers each have been donating 2 -4 hours a week. Hours donated are anticipated to increase in September, after seasonal work ends. Office supplies, such as ink, toner, and paper are provided for by the library/museum budget. Financial Statement Institutions €TMs annual operating budget for most recently completed fiscal year: $5,649.80 Total income: $22,297.29 Total expenditures: $16,647.49 What is your institutions €TMs largest source of income? The museum's largest source of income of 2011 was admission fees, which totaled $10,438. What is your institutions €TMs largest area of expenditures? The museum's largest area of expenditures of 2011 was utility and heating bill payments, which totaled $5,822. Name of person submitting application 'Patricia Linville' Spam Not spam Forget previous vote Sponsored by: Clerk CITY OF SEWARD, ALASKA RESOLUTION 2012 -052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING KENAI PENINSULA BOROUGH ORDINANCE 2012 -28, AMENDING BOROUGH CODE TO PROVIDE THAT ALL SEATS OF THE SEWARD -BEAR CREEK FLOOD SERVICE AREA BOARD SHALL BE FILLED BY RESIDENTS OF THE SERVICE AREA AND ELIMINATING TIIE REQUIREMENT THAT FOUR OF THE SEATS BE RESIDENTS OF THE CITY OF SEWARD AND THREE BE RESIDENTS OF TIIE REST OF TIIE SERVICE AREA WHEREAS, the Seward -Bear Creek Flood Service Area ( "SBCFSA ") was established by Kenai Peninsula Borough Ordinance 2003 -30 and approved by the service area voters in the October 2003 regular borough election; and WHEREAS, as enacted the code provides for four of the seven board members to be residents of the City of Seward and three to be residents of the area outside the city but within the service area; and WHEREAS, the SBCFSA board has experienced difficulties in filling all of the seats particularly those seats from City of Seward residents; and WHEREAS, the service area includes the city and surrounding area and the service area board is required to represent the interests of the entire service area; and WHEREAS, the Kenai Peninsula Assembly is considering Ordinance 2012 -28 which would convert the SBCFSA board to an area -wide board and eliminate the two election districts in order to expand the pool of eligible board members; and WHEREAS, Assembly Member Sue McClure, sponsor of Ordinance 2012 -28, has asked the City Council to support this Ordinance; and WHEREAS, at the July 9, 2012 City Council Meeting direction was given by the council to the City Clerk to bring forward a resolution of support for consideration; and WHEREAS, the SBCFSA board approved recommending a service area wide board by a vote of 4 -1 at its meeting on June 18, 2012. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: ack CITY OF SEWARD, ALASKA RESOLUTION 2012 -052 Section 1. The City Council hereby supports Kenai Peninsula Borough Ordinance 2012- 28, amending borough code to provide that all seats of the Seward Bear Creek Flood Service Area Board shall be filled by residents of the service area and eliminating the requirement that four of the seats be residents of the City of Seward and three be residents of the rest of the service area. Section 2. A copy of this resolution will be sent to the Kenai Peninsula Borough Assembly. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23 day of July, 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Slew . ......... Agenda Statement HO OF selp, Meeting Date: July 23, 2012 -� To: Mayor and City Council 4CICs0 • From: Johanna Kinney, City Clerk Agenda Item: Supporting the Kenai Peninsula Borough's efforts to eliminate the current seating requirements of the Seward Bear Creek Flood Service Area Board and supporting that the board be filled by residents of the service area BACKGROUND & JUSTIFICATION: At the City Council meeting on July 9, 2012, Council directed the City Clerk to bring forward a resolution supporting Kenai Peninsula Borough Ordinance 2012 -28, which would modify the current seating structure on the Seward Bear Creek Flood Service Area Board by allowing the seating requirements to be filled by residents of the service area. Currently the board is composed of four seats to be filled by residents of the City of Seward, and three to be residents outside the city but within the service area. The board has had difficulty filling the City of Seward seats and Assembly Member Sue McClure is bringing forward an Ordinance to change the seating requirements to residents of the service area. INTENT: To show formal support Kenai Peninsula Borough Ordinance 2012 -28, changing the seating requirements of the Seward Bear Creek Flood Service Area Board. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: No fiscal impact. Approved by Finance Department: ATTORNEY REVIEW: Yes: No: X RECOMMENDATION: Review, discuss and consider Resolution 2012 - 1 which supports proposed borough Ordinance 2012 -28, which will go before the Kenai Peninsula Borough Assembly on August 7, 2012. Introduced by: McClure Date: 07/03/12 Hearing: 08/07/12 Action: Vote: KENAI PENINSULA BOROUGH ORDINANCE 2012 -28 AN ORDINANCE AMENDING KPB 16.50.030 TO PROVIDE THAT ALL SEATS OF THE SEWARD -BEAR CREEK FLOOD SERVICE AREA BOARD SHALL BE FILLED BY RESIDENTS OF THE SERVICE AREA AND ELIMINATING THE REQUIREMENT THAT FOUR OF THE SEATS BE RESIDENTS OF THE CITY OF SEWARD AND THREE BE RESIDENTS OF THE REST OF THE SERVICE AREA 1 WHEREAS, the Seward -Bear Creek Flood Service Area ( "SBCFSA ") was established in 2 Ordinance 2003 -30 and approved by the service area voters in the October 2003 3 regular election; and 4 WHEREAS, as enacted the code provides for four of the seven board members to be residents 5 of the City of Seward and three to be residents of the area outside the city; and 6 WHEREAS, the SBCFSA board has experienced difficulties in filling all of the seats 7 particularly those seats from City of Seward residents; and 8 WHEREAS, the service area includes the city and surrounding area and the service area board 9 is required to represent the interests of the entire service area; and 10 WHEREAS, the best interests of the borough and service area support converting this to an 11 area wide board and eliminating the two election districts in order to expand the 12 pool of eligible board members; and 13 WHEREAS, at its meeting of June 18, 2012, the SBCFSA board approved recommending a 14 service area wide board by a vote of 4 - 1; and Now- Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2012 -28 Page 1 of 3 1 WHEREAS, the Seward City Council at its meeting of recommended. 2 3 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI 4 PENINSULA BOROUGH: 5 SECTION 1. That KPB 16.50.030 is amended as follows: 6 16.50.030. Board of directors. 7 There is established a board of directors for oversight of the operations of the 8 Seward -Bear Creek Flood Service Area composed of seven members who shall 9 be elected by the qualified voters of the service area in the manner provided in the 10 borough election code and KPB 16.04.065 as now enacted or may be hereinafter 11 amended. Board seats to be filled at the first election of board members shall be 12 staggered as follows: Seats A and D for one year; seats B and E for two years; and 13 seats C, F, and G for three years. [SEATS A, B, C, AND F SHALL BE FILLED BY Nerd 14 RESIDENTS OF THE CITY OF SEWARD, AND SEATS D, E, AND G SHALL BE FILLED BY 15 RESIDENTS OF THE AREA OUTSIDE THE CITY LIMITS OF THE CITY OF SEWARD AND 16 INSIDE THE SERVICE AREA BOUNDARIES.] Notwithstanding provisions of KPB 17 16.04.060, the first board shall be appointed by the mayor and confirmed by the 18 assembly for one -year terms. 19 SECTION 2. That this ordinance takes effect immediately upon its enactment. Ordinance 2012 -28 New Text Underlined; [DELETED TEXT BRACKETED] Kenai Peninsula Borough, Alaska Page 2 of 3 a? �1rr 1 ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS * 2 DAY OF * 2012. - Gary Knopp, Assembly President ATTEST: Johni Blankenship, Borough Clerk ' Yes: No: Absent: Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2012 -28 Page 3 of 3 a49 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -053 A RESOLUTION OF TIIE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A STATE OF ALASKA DESIGNATIVE LEGISLATIVE GRANT TO RENOVATE THE RESTROOMS LOCATED AT THE HARBORMASTERS BUILDING ON 4 AVENUE, IN THE AMOUNT OF $130,000 AND APPROPRIATING FUNDS WHEREAS, the restrooms at the Harbormasters building are old and not fully ADA (Americans with Disabilities Act) accessible; and WHEREAS, an application was made to the State of Alaska for a legislative grant to renovate the bathrooms to make them ADA accessible; and WHEREAS, the State of Alaska awarded funds through a designated legislative grant; and WHEREAS, with appropriation of the funds to the Harbor Contracted Services account, harbor personnel will begin the bid process. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: `. Section 1. The City Manager is hereby authorized to accept and execute a grant from the State of Alaska to renovate harbor restrooms. Section 2. Funding in the amount of $130,000.00 is hereby appropriated from State Grant Funds account number 314 -3140- 4680 -0200 to infrastructure account 314 - 3140 -5925. Section 2. The resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23 day of July, 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor sod Council Agenda Statement c o f s Meeting Date: July 23, 2012 � 9 4 Through: Jim Hunt, City Manager 4� S From: Norman Regis, Deputy Harbormaster Agenda Item: State legislative grant for harbor bathroom renovations BACKGROUND & JUSTIFICATION: A grant application was submitted to the State of Alaska requesting funds to renovate the harbor restrooms to provide improved ADA accessibility and additional public use facilities. The grant was awarded and the harbor department is preparing to move forward with the bid process and eventual design, engineering and renovation. This resolution will appropriate the funds to move forward with that process. INTENT: Appropriation of $130,000 received through a State of Alaska Legislative grant, for harbor bathroom renovations. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan: Small Boat Harbor Development page 22 X 2 Strategic Plan: page 7 Complete the renovation of the Small Boat Harbor X 3. Other (list): X FISCAL NOTE: The entire project cost is $130,000. This grant does not require a match from the City. Approved by Finance Department: ,,A44 ATTORNEY REVIEW: Yes No X RECOMMENDATION: 053 City Council approves Resolution 2012 - appropriating $130,000.00 from the State of Alaska Designated Legislative Grant Fund to the 2012 Harbor budget in account 401 -4360 -5390 to design and renovate the restrooms located at the Harbormasters building. Niter oar OF •r1 r , - ,; DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION OF COMMUNITY AND REGIONAL AFFAIRS Nod 'a t Lron.s__ G .`� Designated Legislative Grant Program Grant Agreement Grant Agreement Number Amount of State Funds 12 -DC -615 $130,000.00 Encumbrance Number /AR/Lapse Date Project Title / 8898 / 6/30/2016 Harbor Restrooms Improvements Grantee Department Contact Person Name Name City of Seward Robin Park Street/PO Box Title PO Box 167 Grants Administrator II City /State /Zip Street/PO Box Seward AK 99664 PO Box 110809 Contact Person City /State /Zip Kim Kowalski - Rogers Juneau AK 99811 -0809 Phone Fax Phone Fax 907 -224 -4064 _ 907 -224 -4038 (907) 451-4731 (907) 451-5867 AGREEMENT The Alaska Department of Commerce, Community, and Economic Development, Division of Community and Regional Affairs (hereinafter `Department') and City of Seward. (hereinafter `Grantee') agree as set forth herein. Section I. The Department shall pay the Grantee for the performance of the project work under the terns outlined in this agreement. The amount of the payment is based upon project expenses incurred, which are authorized under this Agreement. In no event shall the payment exceed $130,000.00. Section II. The Grantee shall perform all of the work required by this Agreement. Section .III. The work to be performed under this agreement begins 7/1/2011 and shall be completed no later than 6/30/2016. Section IV. The agreement consists of this page and the following: ATTACHMENTS APPENDICES Attachment A.: Scope of Work Appendix A: Audit Regulations 1. Project Description Appendix B: Audit Compliance Supplement 2. Project Budget Appendix B2: Insurance 3. Project Narrative Appendix C: State Laws and Regulations 4. Project Management/Reporting Appendix D: Special Requirements and Assurances for 5. Forms Packet Federally Funded Projects (if applicable) Attachment B: Payment Method Appendix E: Site Control Attachment C: Standard Provisions Appendix F: State Fire Marshal Review AMENDMENTS: Any fully executed amendments to this Agreement Grantee Department Signature � Signature Printed Name and Title Printed Name and Title Kris Erchinger, Interim City Manager Jolene Julian, Grants Administrator III Date Date 10 1/2 -h/ Reviewed by: Attachment A Scope of Work 1. Project Description The purpose of this FY 2012 Designated Legislative Grant in the amount of $1 [pursuant to the provisions of AS 37.05,315, SLA 2011, Chapter 5, Section 7, Page 142, Lines 7,] is to provide funding to City of Seward for use towards Harbor Restrooms Improvements. The objective of this project is for expanding the harbor restrooms renovations, plumbing and ADA requirements. This project may include, but is not limited to: • Contractual agreements; • Construction costs; • Equipment; • Materials and supplies No more than five percent (5 %) of the total grant award may be reimbursed for Administrative expenses for projects involving equipment purchase or repairs and no more than ten percent (10 %) of the total grant award may be reimbursed for Administrative expenses for all other projects. To be reimbursed for eligible administrative costs, expenses must be reported on the Designated Legislative Grant Financial /Progress Report form. 2. Project Budget Cost Category Grant Funds Total Project Cost Program Funds $130,000.00 $130,000.00 3. Budget Narrative The Grant Funds identified above will be used to complete the project described in the above Project Description. Rev. 4/200 Designated Legislative Grant Agreenren/ Attachment A Page 1 oft 4. Project Management/Reporting This project will be managed by the Grantee. If the Grantee is a City, signatory authority for execution of the Grant Agreement and subsequent amendments is granted to the Mayor. The Mayor may delegate signatory authority for executing the Grant Agreement and amendments to others within the City government via the Signatory Authority Form. The Mayor may also designate financial and progress reporting authority via the Signatory Authority Form. Such delegation is limited to others within the City government, unless otherwise approved by the Department. If the Grantee is not a City, signatory authority for execution of the Grant Agreement and subsequent amendments is granted to the Chief Executive Officer (CEO). The CEO may delegate authority for executing the Grant Agreement and amendments to others within the Grantee's organization via the Signatory Authority Form. The CEO may also designate financial and performance progress reporting authority via the Signatory Authority Form. Such delegation is limited to others within the Grantee's organization unless otherwise approved by the Department. The Grantee must establish and maintain separate accounting for the use of this Grant. The use of Grant funds in any manner contrary to the terms and conditions of this Grant Agreement may result in the subsequent revocation of the grant and any balance of funds under the grant. It may also result in the Grantee being required to return such amounts to the State. The Grantee shall submit a Designated Legislative Grant Financial/Progress Report Form (see attached) each month, or quarterly, with the concurrence of the Department, during the life of the Grant Agreement. Grant Financial /Progress Report Forms are due fifteen (15) days after the end of the month or quarter being reported. The report period is the first of the month through the last day of the month.. If quarterly reporting is approved, the report period is the first day of the first month through the last day of the third month of the quarter. The final Financial /Progress Reports must be submitted within thirty (30) days following completion of the project. Under no circumstances will the Department release funds to the Grantee unless all required reporting is current. 5. Grant Forms Packet The following page, which includes the Designated Legislative Grant Financial /Progress Report Form, is to be used by the Grantee for monthly /quarterly reporting. Additional copies of this form are available from the Department, electronically or in hard copy. Rev. $ /2009 .Designated Legislative Grant Agreement Attachment A Page 2 q(2 Sponsored by: Hunt 1 41610 , CITY OF SEWARD, ALASKA RESOLUTION 2012 -054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ALLOCATING FUNDS FOR DREDGING AND REQUIRED SITE PREPARATION WORK FOR DREDGING THE SMALL BOAT HARBOR PURSUANT TO THE CITY'S AGREEMENT WITH THE US ARMY CORPS OF ENGINEERS AND AUTHORIZING THE CITY MANAGER TO ENTER INTO THE REQUIRED CONTRACT IN THE AMOUNT OF $465,618 AND TO RESCIND RESOLUTION 2012 -035 WHEREAS, the City and the US Army Corps of Engineers entered into a Project Cooperation Agreement (PCA) dated June 13, 2003 as amended, for the Small Boat Harbor expansion; and WHEREAS, pursuant to the PCA, the City is responsible for a share of the cost of certain dredging work to be done in the harbor; and WHEREAS, on May 29, the City Council approved funding to dredge the Small Boat Harbor ( "SBH ") totaling $614,000; and WHEREAS, the City needs to use those funds for both the costs of dredging and for dredged material disposal site preparation work; and WHEREAS, the City will utilize Commercial Passenger Vessel (CPV) tax funds to pay for a majority of the City's dredging costs; and WHEREAS, it is now necessary to re- allocate the funds that were previously approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The amount of $603,983 is hereby re- allocated and appropriated as follows: 1) $550,000 from the Commercial Passenger Vessel Fund Account No. 807- 0000- 3071 -0276 to the `Dredging' Contracted Services within the `Dredging' Contracted Services Account No. 276 - 2763 -5390, and 2) $53,983 from the Harbor Maintenance Repair and Replacement Fund ( "MRRF ") Reserves Account No. 402 - 0000 - 3071 -0276 to the `Dredging' Contracted Services Account No. 276 - 2763 -5390. Section 2. The City's payment of $465,618 is authorized to be paid to the US Army Corps of *l Engineers for dredging pursuant to the PCA. CITY OF SEWARD, ALASKA RESOLUTION 2012 -054 Section 3. The City Manager is hereby authorized to enter into an amendment to the PCA with the US Army Corps of Engineers, in substantially the form presented at this meeting, for dredging areas within the Small Boat Harbor, in the quantities and for the costs described in the June 21, 2012 letter from the US Army Corps of Engineers. Section 4. Council hereby rescinds Resolution 2012 -035 passed on May 29, 2012. Section 5. This resolution shall take immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23 day of July, 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Ned Council Agenda Statement ek. of SF j Meeting Date: July 23, 2012 �j . ttim1► Through: City Manager Jim Hunt From: Harbormaster Mack Funk 0" • Agenda Item: 2012 Re- Allocated Appropriations for Harbor Dredging Project BACKGROUND & JUSTIFICATION: May 29, 2012 Council approved funding for payment through the Corps of Engineers (COE) to their contractor, to dredge areas of the Seward Small Boat Harbor. In accordance with the 2003 Project Cooperation Agreement (as amended) between the COE and the City, the City has granted permission to the COE and its contractor to place the contaminated dredged materials at an approved site on the east side of SMIC. The City's consultant has prepared a site and project specific Stormwater Pollution Prevention Plan (SWPPP) under the construction general permit (CGP). The Corps of Engineers bids came back higher than had been anticipated. Therefore, in order to prioritize the areas in need of dredging and most effectively use available funds, administration recommends that Council approve an appropriation to dredge two of the three previously specified areas. This requires the expenditure of $53,983 (including a 10% contingency) from the Harbor Maintenance Repair and Replacement Fund (MRRF) to dredge the area in the vicinity of the 50 -ton boat lift. This compares to an amount earlier approved on May 29 of $282,440. This reduction in cost is based on staffs recommendation that dredging of the south east corner of the harbor should be a lower priority, primarily because it is currently being used by smaller `0.• boats with shallower keels. Passage of the new resolution will authorize and appropriate $550,000 of Commercial Passenger Vessel (CPV). This compares to an amount earlier approved on May 29 of $331,560. The higher amount is necessary due to the higher than expected bids. Later, if contamination is found, a work plan will be needed to manage the sediment deposits until the contaminants are converted into non -toxic compounds. Those contracts are in the process of being solicited and they may require further council review and approval. Additional money is needed because of the higher than expected bids as well as for site preparation and monitoring. These developments led to administration recommending that Council rescind Resolution 2012 -035, passed on May 29, 2012 and replace it with the attached resolution. Passage of the resolution preserves general navigation and private facility features in the harbor, keeping the COE responsible for the dredging under the auspices of the Amended 2003 Project Cooperation Agreement. INTENT: Rescind Resolution 2012 -035 and approve a new resolution allocating funds for the dredging of the small boat harbor, amending the 2003 Project Cooperation Agreement with the Corp of Engineers. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): 2010 Comprehensive Plan (adopted in 1990) page 35- 1. "Continue to support, promote, enhance and develop harbor facilities to X accommodate Seward's growing demand for marine transport facilities." Strategic Plan (document source here): City of Seward Strategic Plan 2. (1999) page 7- X "Complete the renovation of the Small Boat Harbor." 3. Other (list): X FISCAL NOTE: The Commercial Passenger Vessel (CPV) or cruise ship tax funds can only be used for qualified purposes. Now that the bids have been opened, administration recommends $603,983 for dredging and site preparation work. Of that total $550,000 is to be appropriated from CPV funds and $53,983 from MRRF funds. Approved by Finance Department: 4 ATTORNEY REVIEW: Yes X No RECOMMENDATION: Gj City Council rescind Resolution 2012 -035 and approve Resolution 2012 - D allocating funds for dredging and required site preparation work for dredging the Small Boat Harbor pursuant to the City's Agreement with the US Army Corps of Engineers and authorizing the City Manager to enter into the appropriate agreements. ' , 4, DEPARTMENT OF THE ARMY as _ U.S. ARMY ENGINEER DISTRICT, ALASKA `° gill' h1 P.O. BOX 6898 j p/r ' JBER, ALASKA 99506 -0898 , tAtES V1 a> REPLY TO ATTENTION OF; Civil Project Management Branch June 29, 2012 Mr. James Hunt _ __ _- P.O. Box 167 Seward, Alaska 99664 Dear Mr. Hunt: This letter acknowledges receipt of your letter dated June 28, 2012 requesting the CORPs to include the dredging of the City's 100% local areas, Ll and L3, of the Seward Harbor as part of our upcoming Operation and Maintenance (O &M) Dredging project. Areas Ll and L3 are described in the Seward Harbor O &M Dredging Task Order W911KB -07 -D -0017. The CORPs anticipates awarding the Federal Base Items by July 9, 2012. The local areas to be dredged are identified in the Task Order Proposal Schedule as follows: 0007. Dredging and Dredged Material Disposal, Area Ll complete. Alternative 2 for 2,250 (CY) Cubic Yards 0009. Dredging and Dredged Material Disposal, Area L3 complete for 650 CY 0010. Hydrographic Surveys for Option Items 0007, 0008, and 0009, complete. 2 EA The total funds of $465,618 are required to award these items and for the Supervision, Inspection and Overhead (SIOH) to administer the local areas of the contract. Please provide a check in the total amount of $465,618, by July 31, 2012 in order to award the local areas. The Project Cooperation Agreement (PCA) dated June 13, 2003, as amended, covers the terms and conditions of the O &M dredging. Checks should be made out to "FAO, USAED, Alaska District" and mailed to the address below. Please contact me at 753 -2861 if you have any questions. US ARMY ENGINEER DISTRICT, ALASKA CEPOA- PM -CW, TINA MCMASTER - GOERING 2204 3 STREET ELMENDORF AFB, ALASKA 99506 -1518 Sincerely, i Allf ina McMaster - Goering 'tiorr Project Manager 2003 Project Cooperation Agreement US Army Corps of Engineers City of Seward • 31 pages in length • Describes the specific features of the Seward Small Boat Harbor (page 2) • The Non - Federal Sponsor (the City) can request betterments (page 6) • The City must pay for the work in advance (page 17) • The City must pay for the disposal of contaminated sediments (page 25) • The agreement shall not obligate future City appropriations (page 28) O i � 11 1 r► PROJECT COOPERATION AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE CITY OF SEWARD, ALASKA FOR CONSTRUCTION OF THE HARBOR IMPROVEMENTS, SEWARD, ALASKA THIS AGREEMENT entered into this /<3 day of ;T"vvG aooj, by and between the Department of the Army (hereinafter the "Government ") represented by the Deputy Assistant Secretary of the Army (Policy and Legislation), Office of the Assistant Secretary of the Army (Civil Works), and the City of Seward, Alaska (hereinafter the "Non- Federal Sponsor "), represented by its City Manager. WITNESSETH, THAT: WHEREAS, construction of the Harbor Improvements (hereinafter the "Project ", as defined in Article I.A. of this Agreement) at Seward, Alaska was authorized by the Water Resources Development Act of 1999, Public Law 106 -53; WHEREAS, the Government and the Non - Federal Sponsor desire to enter into a Project Cooperation Agreement (hereinafter the "Agreement ") for construction of the Project; WHEREAS, Section 101 of the Water Resources Development Act of 1986, Public Law 99 -662, as amended, specifies the cost - sharing requirements applicable to the Project; WHEREAS, Section 221 of the Flood Control Act of 1970, Public Law 91 -611, as amended, (codified as amended at 42 U.S.C. § 1962d -5b) and Section 101 of the Water Resources Development Act of 1986, Public Law 99 -662, as amended (codified as amended at 33 U.S.C. § 2211), provide, inter alia, that the Secretary of the Army shall not commence construction of any water resources project, or separable element thereof, until each non - Federal sponsor has entered into a written agreement to fumish its required cooperation for the project or separable element; WHEREAS, Section 902 of the Water Resources Development Act, Public Law 99 -662, as amended, establishes the maximum amount of costs for the Project and sets forth procedures for adjusting such maximum amount; WHEREAS, the Government and a non - Federal interest entered into an agreement for design of the Project (hereinafter the "Design Agreement "), dated April 23, 1999, under the terms of which the non - Federal interest contributed a percentage of the costs for design; WHEREAS, the Government and Non - Federal Sponsor have the full authority and capability to perform as hereinafter set forth and intend to cooperate in cost - sharing and financing of the Project in accordance with the terms of this Agreement; and � I � � r a . WHEREAS, the Government and the Non - Federal Sponsor, in connection with this Agreement, desire to foster a "partnering" strategy and a working relationship between the i Government and the Non - Federal Sponsor through a mutually developed formal strategy of commitment and communication embodied herein, which creates ati environment where trust and team work prevent disputes, foster a cooperative bond between the Government and the Non- Federal Sponsor, and facilitate the completion of a successful project. NOW, THEREFORE, the Government and the Non - Federal Sponsor agree as follows: ii ARTICLE I - DEFINITIONS AND GENERAL PROVISIONS For purposes of this Agreement: A. The term "Project" shall mean the general navigation features and all lands, easements, rights -of -way, relocations, or removals that the Government, in accordance with Artiele III of this Agreement, determines to be necessary for the construction, operation, and maintenance of the general navigation features, but shall not include aids to navigation or the local service facilities. B. The tern "general navigation features" shall mean approximately 1,700 -foot of rubble mound breakwater approximately 400 feet east of the existing. harbor, 330 -foot of rubble mound breakwater across the existing harbor entrance gap, a 120 -foot wide entrance channel dredged to —15 ft MI..LW, as generally described in the Harbor improvements, Final Interim Feasibility Report and Enviromnental Assessment, Seward, Alaska, dated September 1998 and approved by the Chief of Engineers on June 8, 1999. The tenor does not include any lands, easements, rights - of-way or relocations; removals; betterments; aids to navigation; ution; or local service facilities. C. The terrn "total cost of construction of the general navigation features" shall mean all • costs incurred by the Non - Federal Sponsor or the Government in accordance with the terms of • this Agreement directly related to construction of the general navigation features. Subject to the provisions of this Agreement, the term shall include, but is not necessarily limited to: the • Government's preconstruction engineering and design costs; the value of the non - Federal interest's contributions under the terns of the Design Agreement; the Government's engineering and design costs during construction; the costs of investigations to identify the existence and 1 . extent of hazardous substances in accordance with Article XV.A. I. of this Agreement; the costs of historic preservation activities in accordance with Articles XVIII.A. and XVIII.D.1 . of this Agreement; the Government's actual construction costs (including any costs of construction of . dredged or excavated material disposal facilities incurred prior to the end of the period of construction or during any subsequent period of constriction and the costs of alteration., lowering, raising, or replacement and attendant demolition of existing bridges over navigable waters of the United States); the Government's supervision and administration costs; costs of participation in thc Project Coordination Team in accordance with Article V of this Agreement; thc Government's costs of contract dispute settlements or awards; incidental costs of removals ' l accomplished by the Non- Federal Sponsor before the end of the period of construction or during r any subsequent period of construction in accordance with Article ILIA. of this A.greei ent; direct P 2 • r • • 1. 0 • and incidental costs of removals accomplished by the Government before the end of the period of construction or during any subsequent period of construction in accordance with Article II.L. of this Agreement; and costs of audit in accordance with Articles X.B. and X.C. of this Agreement. The term does not include the value of any lands, easements, rights -of -way or relocations; any costs of removals accomplished by the Non - Federal Sponsor other than incidental costs; any financial obligations for operation and maintenance of the general navigation features; any costs assigned to an existing Federal or non - Federal navigation project in accordance with Article II.E. of this Agreement; any costs assigned by the Govemment to additional capacity in accordance with Article II.O. of this Agreement; any costs due to betterments; any costs of dispute resolution under Article VII of this Agreement; any costs of aids to navigation; or any costs of construction, operation and maintenance of the local service facilities. D. The term "financial obligation for construction" shall mean a financial obligation of the Government that results or would result in a cost that is or would be included in the total cost of construction of the general navigation features. E. The term "non- Federal proportionate share" shall mean the ratio of the Non - Federal Sponsor's total cash contribution required in accordance with Article I1.G. of this Agreement to total financial obligations for construction, as projected by the Govemment. F. The term "period of construction" shall mean the time from the date the Government first notifies the Non - Federal Sponsor in writing, in accordance with Article VI.B. of this Agreement, of the scheduled date for either issuance of the solicitation for the first contract for construction of the general navigation features, as defined in Article I.B. of this Agreement, or commencement, using the Government's own forces, of construction of the general navigation features to the date that the U.S. Amry Engineer for the Alaska District (hereinafter the "District Engineer ") notifies the Non - Federal Sponsor in writing of the Government's determination that construction of the general navigation features is complete, except for any construction of a dredged or excavated material disposal facility, or any expansion (including raising of dikes) of such a facility, that will contain material from maintenance, but not the construction, of the other general navigation features. G. The term "subsequent period of construction" shall mean a period beginning with the date that the Government first notifies the Non - Federal Sponsor in writing of the scheduled date for either issuance of the solicitation for the contract or commencement, using the Government's own forces, of construction of a dredged or excavated material disposal facility, or any expansion (including raising of dikes) of such a facility, that will contain material from maintenance, but not the construction, of the other general navigation features and ending with the date that the District Engineer notifies the Non - Federal Sponsor in writing of the Government's determination that such construction or expansion is complete. There may be more than one subsequent period of construction and a subsequent period of construction may be concurrent with the period of construction. H. The term "highway' shall mean any public highway, roadway, street, or way, including any bridge thereof. 3 1 I 3 • • I. The term. "bridge over navigable waters of the United States" shall mean a lawfial : Need bridge over the navigable waters of the United States, including approaches, fenders, and appurtenances thereto, which is used and operated for the purpose of carrying railroad traffic, or • both railroad and highway traffic, or if a State, county, municipality, or other political • subdivision is the owner or joint owner thereof, which is used and operated for the purpose of carrying highway traffic. • J. The term "relocation" shall mean providing a functionally equivalent facility to the I owner of an existing utility, cemetery, highway, railroad (including any bridge thereof), or public facility, excluding existing bridges over navigable waters of' the United States, when such action ■ is authorized in accordance with applicable legal principles of just compensation or providing a functionally equivalent facility when such action is specifically provided fix, and is identified as • a relocation, in the authorizing legislation for the Project or any report referenced therein. • • Providing a functionally equivalent facility may take the form of alteration, lowering, raising, or replacement and attendant demolition of the affected facility or part thereof. • • K. The term "removal" shall mean eliminating an obstruction (other than a bridge over the navigable waters of the United States) where the Government determines, after consultation with the Non - Federal Sponsor, that: 1) elimination is necessary for the construction, operation, and maintenance of the general navigation features, including the borrowing of material or the disposal of dredged or excavated material associated therewith; 2) elimination must be accomplished before the end of the period of construction or during a subsequent period of construction; and 3) the Non - Federal Sponsor, the State of Alaska, or the Government has the • • legal capability to accomplish elimination of the obstruction at the expense of the owner or operator thereof The term also shall mean the elimination of an obstruction to the construction, I operation, and maintenance of the general navigation features when such elimination is specifically provided for, and is identified as a removal, in the authorizing legislation for the Project or any report referenced therein. • L. The term "fiscal year" shall mean one fiscal year of the Government. The • Government fiscal year begins on October 1 and ends on September 30. , M. The term "betterment" shall mean a change in the design and construction of an element of the general navigation features accomplished at the request of the Non - Federal Sponsor resulting from the application of standards that the Government deterrruines exceed those • that the Government would otherwise apply for accomplishing the design and construction of • that element. The term does not include any enlargement of the capacity of any dredged or excavated material disposal facility to enable disposal of dredged or excavated material fiom . outside the other general navigation features. 1 N. The term "dredged or excavated material disposal facility" shall moan the improvements necessary on lands easements, or rights-of-way to enable the disposal of dredged or excavated material associated with the construction, operation, and maintenance of the other general navigation features. Such improvements may include, but not necessarily be limited to, . 0 4 i • • i • k ri X • • • • • ii retaining dikes, waste weirs, bulkheads, embankments, monitoring features, stilling basins, or de- watering pumps or pipes. Q. The term "depth ", when used to determine the cost sharing required under this Agreement, shall mean dredged or excavated depth net of associated entrance channel wave allowances and over - depth. P. The term "over- depth" shall mean additional dimensions associated with a given depth that are required to accomplish advanced maintenance, if any, and to compensate for dredging inaccuracies at that depth. Q. The term "utility" shall mean that which the State of Alaska, pursuant to generally applicable state law, defines as a public utility. R. The term "Federal program funds" shall mean funds or grants provided by a Federal agency, other than the Department of the Army, and any non - Federal matching share required therefore. S. The term "local service facilities" shall mean the facilities that are necessary to realize the benefits of the general navigation features, as generally described in, and required of the Non - Federal Sponsor by Final Interim Feasibility Report and Environmental Assessment, Seward, Alaska, dated September 1998. The local service facilities include the dredging of mooring and berthing areas, floats, constructing adjacent uplands, and armoring upland slopes. ARTICLE II - OBLIGATIONS OF THE GOVERNMENT AND THE NON - FEDERAL SPONSOR A. The Government, subject to receiving funds appropriated by the Congress of the United States (hereinafter the "Congress ") and using those funds and funds provided by the Non- ) Federal Sponsor, shall expeditiously construct the general navigation features (including alteration, lowering, raising, or replacement and attendant removal of existing bridges over navigable waters of the United States), applying those procedures usually applied to Federal projects, pursuant to Federal laws, regulations, and policies. 1. The Government shall afford the Non - Federal Sponsor the opportunity to review and comment on the solicitations for all contracts, including relevant plans and specifications, prior to the Government's issuance of such solicitations. The Government shall not issue the solicitation for the first construction contract or commencement of construction using its own forces until the Non - Federal Sponsor has confirmed in writing its willingness to proceed with the Project and the local service facilities. To the extent possible, the Government shall afford the Non - Federal Sponsor the opportunity to review and comment on all proposed contract modifications, including change orders. In any instance where providing the Non - Federal Sponsor with notification of a contract modification is not possible prior to execution of the contract modification, the Government shall provide such notification in writing at the earliest date possible. To the extent possible, the Government also shall afford the Non - Federal 5 Sponsor the opportunity to review and comment on all contract claims prior to resolution thereof. The Government shall consider in good faith the comments of the Non - Federal Sponsor, but the contents of solicitations, award of contracts or commencement of construction using its own forces, execution of contract modifications, resolution of contract claims, and performance of all work on the general navigation features (whether the work is performed under contract or by Government personnel), shall be exclusively within the control of the Government. 2. Throughout the period of construction and during any subsequent period of construction, the District Engineer shall furnish the Non - Federal Sponsor with a copy of the Government's Written Notice of Acceptance of Completed Work for each contract for the general navigation features. 3. As of the effective date of this Agreement, $4,500,000 of Federal funds have been appropriated for the Project. This amount is less than the Federal share of the projected total cost of construction of the general navigation features, and the Government makes no commitment to budget for additional funds for the Federal share of the total cost of construction of the general navigation features. Notwithstanding any other provision of this Agreement, the Government's financial participation in the Project is limited to this amount together with any additional funds that the Congress may appropriate for the Project. In the event that the Congress does not appropriate funds sufficient to meet the Federal share of funds required to continue construction of the Project in the then - current or upcoming fiscal year, the Government shall notify the Non - Federal Sponsor of the insufficiency of funds and the parties, within the Federal and Non - Federal funds available for the Project, shall suspend construction or terminate this Agreement in accordance with Article XIV.B of this Agreement. To provide for this eventuality, the Government may reserve a percentage of total Federal funds available for the Project and an equal percentage of the total funds contributed by the Non - Federal Sponsor in accordance with Article II.F of this Agreement as a contingency to pay costs of termination, including any costs of contract claims and contract modifications. B. The Non - Federal Sponsor may request the Government to design or construct betterments. Such requests shall be in writing and shall describe the betterments requested to be performed. If the Government in its sole discretion elects to perform the requested betterments or any portion thereof, it shall so notify the Non - Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Non - Federal Sponsor shall be solely responsible for all costs due to the requested betterments and shall pay all such costs in accordance with Article VI.0 of this Agreement. C. In accordance with Article III of this Agreement, the Non - Federal Sponsor shall provide all lands, easements, or rights -of -way that the Government determines the Non - Federal Sponsor must provide for the construction, operation, and maintenance of the general navigation features, including the borrowing of material or the disposal of dredged or excavated material associated therewith, and shall perform or ensure performance of all relocations that the Government determines to be necessary for the construction, operation, and maintenance of the general navigation features. 6 I � D. The Non - Federal Sponsor may request the Government to provide lands, easements, or rights -of -way or to perform relocations for the general navigation features on behalf of the Non- Federal Sponsor. Such requests shall be in writing and shall describe the services requested to be performed. If in its sole discretion the Government elects to perform the requested services or any portion thereof, it shall so notify the Non - Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Non - Federal Sponsor shall be solely responsible for all costs of the requested services and shall pay all such costs in accordance with Article VI.0 of this Agreement. Notwithstanding the provision of lands, easements, or rights -of -way, or performance of relocations by the Government, the Non - Federal Sponsor shall be responsible, as between the Government and the Non - Federal Sponsor, for the costs of cleanup and response in accordance with Article XV.D of this Agreement. E. The Government shall assign all costs associated with the dredging or excavation of material from the dimensions, including over -depth and entrance channel wave allowances, of any existing Federal or non - Federal navigation project to the costs of operation and maintenance of the existing Federal or non - Federal navigation project. The Government, in accordance with Federal laws, regulations, and policies, shall assign all costs included or to be included in the total cost of construction of the general navigation features during the period of construction to one or more of the following depth increments: dredging to a depth not in excess of 20 feet plus associated over -depth and entrance channel wave allowances; dredging to a depth in excess of 20 feet but not in excess of 45 feet plus associated over -depth and entrance channel wave allowances. Any costs of construction of the general navigation features incurred during a subsequent period of construction shall be assigned to the Project dredged depth. F. The Non - Federal Sponsor shall contribute a share of the total cost of construction of the general navigation features (including any costs of dredged or excavated material disposal facilities during any subsequent period of construction) as follows: 10 percent of that portion of the total cost of construction of the general navigation features assigned to dredging to a depth not in excess of 20 feet plus associated over -depth and entrance channel wave allowances; plus 25 percent of that portion of the total cost of construction of the general navigation features assigned to dredging to a depth in excess of 20 feet but not in excess of 45 feet plus associated over -depth and entrance channel wave allowances. G. If the Government projects that the value of the non - Federal interest's contributions under the terms of the Design Agreement; the Non - Federal Sponsor's contributions under paragraph M.3 of this Article, and the Non - Federal Sponsor's contributions under Articles V, X.B., X.C., and XV.A.1 of this Agreement will be less than its share required by paragraph F. of this Article, the Non - Federal Sponsor shall provide a contribution of funds, in accordance with Article VI.B. of this Agreement, in the amount necessary to meet its share required by paragraph F. of this Article. H. The Government shall perform a final accounting in accordance with Article VI.D. of this Agreement to determine the value of the non - Federal interest's contributions under the terms of the Design Agreement, the Non - Federal Sponsor's contributions provided in accordance with 7 I � i I P � I k �� I f paragraphs B., D., G., M.3., N. and 0. of this Article before the end of the period of construction, and the Non - Federal Sponsor's contributions provided in accordance with Articles V, X.B., X.C., XV.A.1., and XVIII of this Agreement before the end of the period of construction and to determine whether the Non - Federal Sponsor has met its obligations under paragraphs B., D., F., N., and 0. of this Article for the period of construction. The final accounting also shall determine an amount equal to 10 percent of the total cost of construction of the general navigation features (hereinafter the "10 percent amount ") before the end of the period of construction. In the event there is a subsequent period of construction, the Government shall amend the final accounting in accordance with Article VLE.5 of this Agreement. I. Before furnishing the Non - Federal Sponsor with the results of the final accounting, the Government shall afford credit against the 10 percent amount for the value, as determined in accordance with Article IV of this Agreement, of lands, easements, rights -of -way, or relocations provided before the end of the period of construction; provided, however, that such credit shall not exceed the 10 percent amount. In accordance with Article VI.E of this Agreement, the Non - Federal Sponsor shall, over a period not to exceed 30 years, pay an amount equal to the 10 percent amount reduced by such credit (hereinafter the "principal amount "), with interest. In accordance with Article VI.E.4 of this Agreement, the Government also shall afford credit against the principal amount for the value, as determined in accordance with Article IV of this Agreement, of the lands, easements, rights -of -way, or relocations provided after the period of construction. In the event there is a subsequent period of construction and the Government amends the final accounting in accordance with Article VI.E.5 of this Agreement, the Non - Federal Sponsor, in accordance with Article VI.E.5 of this Agreement, shall pay any additional portion of the principal amount that is outstanding as a consequence of the amended final accounting. J. The Government shall operate and maintain the general navigation features and the Non - Federal Sponsor shall provide authorization for entry in accordance with Article VIII.A of this Agreement. { K. The Non - Federal Sponsor shall not use Federal program funds to meet its obligations for the Project under this Agreement unless the Federal agency providing the Federal program funds verifies in writing that such expenditure of funds is expressly authorized by statute. L. The Government shall accomplish all removals that neither the Non - Federal Sponsor nor the State of Alaska has the legal capability to accomplish where both the Non - Federal Sponsor and the State of Alaska make a written request for the Government to accomplish such removals, and shall accomplish all removals that the Govemment is expressly required to accomplish in the authorizing legislation for the Project or any report referenced therein. 1. In the event a court determines that the owner of an obstruction is entitled to payment of just compensation as the result of elimination of the obstruction, such removal shall be reclassified as part of the Non - Federal Sponsor's responsibility to provide lands, easements, and rights -of -way, or to perform relocations, as appropriate, pursuant to Article II.C. of this Agreement. 8 • 2. All costs incurred by the Government in accomplishing removals shall be Illinv included in the total cost of construction of' the general navigation features and shared in accordance with the provisions of this Agreement. M. The Non - Federal Sponsor shall accomplish all removals, other than those removals specifically assigned to the Government by paragraph L. of this Article, in accordance with the provisions of this paragraph. • 1. The Government in a timely manner shall provide the Non - Federal Sponsor • with general written descriptions, including maps as appropriate, of such removals, in detail sufficient to enable the Non - Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non- Federal Sponsor with a written notice to proceed with accomplishing such • rernovals. Unless the Government agrees to a Later date in writing, gr g, prior to the issuance of the solicitation for each Government contract for construction, operation, and maintenance of the general navigation features, or prior to the Government incurring any financial obligation for construction, operation, and maintenance of the general navigation features that it elects to perform with its own forces, the Non - Federal Sponsor shall accomplish all removals set forth in such descriptions that the Government determines to be necessary for that work. • 2. In the event a court determines that the owner of an obstruction is entitled to payment of just compensation as the result of elimination of the obstruction, such removal shall be reclassified as part of the Non - Federal Sponsor's responsibility to provide lands, easements, and rights-of-way, or to perform relocations, as appropriate, pursuant to Article ILC. of this Agreement. 3. The documented incidental costs incurred by the Non - Federal Sponsor in : accomplishing removals shall be included in the total cost of construction of the general navigation features, subject to an audit in accordance with Article KC, of this Agreement to determine reasonableness, allocability, and allowability of costs, and shared in accordance with the provisions of this Ag.recrnent. Incidental costs rnay include legal and administrative costs (such as owner or operator notification costs, public notice or hearing costs, attorney's fees, and 1 litigation costs) incurred by the Non - Federal Sponsor in accomplishing removals, but shall not • include any costs that the Non - Federal Sponsor or the State of Alaska has the legal capability to • 0 • require of, assign to, or recover from the owner or operator of the obstruction. ; N. The Non - Federal Sponsor may request the Government to design, construct, or operate and maintain the local service facilities. Such requests shall be in writing and shall • describe the local service facilities requested to be performed. If the Government in its sole discretion elects to perforrn the requested services or any portion thereof, it shall so notify the Non - Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must 0 be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. The Non - Federal Sponsor shall be solely responsible i for all costs due to the requested services and shall pay all such costs in accordance with Article VI.0 of this Agreement. • ' i l t 9 11 3 i i o • I r 4111111W' : • • o • . I { • O. The Non - Federal Sponsor may request the Government to provide additional ,7 capacity, over and above the capacity needed solely for dredged or excavated material from the other general navigation features, at a dredged or excavated material disposal facility for dredged or excavated material from outside the general navigation features. Such requests shall be in writing and shall describe the additional capacity requested to be provided. If the Government in its sole discretion elects to provide the requested additional capacity or any portion thereof, it shall so notify the Non - Federal Sponsor in a writing that sets forth any applicable terms and conditions, which must be consistent with this Agreement. In the event of conflict between such a writing and this Agreement, this Agreement shall control. In the event the Government elects to provide the additional capacity, the Government shall allocate capacity costs between the total cost of construction of the general navigation features and the costs of the additional capacity. The Non - Federal Sponsor shall be solely responsible for all costs allocated by the Government to the additional capacity and shall pay all such costs in accordance with Article VI.0 of this Agreement. P. Subject to applicable Federal laws and regulations, the Non - Federal Sponsor, at no cost to the Government and in a timely manner, shall construct the local service facilities, including dredging or excavation and disposal of material therefrom, and shall be responsible for taking all actions to enable such construction. The Government shall have no responsibility under this Agreement for the construction of the local service facilities or the construction of any other facilities provided by the Non - Federal Sponsor or a third party. Q. In accordance with Article VIlI.D. of this Agreement, the Non - Federal Sponsor, at no cost to the Government, shall operate and maintain the local service facilities, including dredging or excavation and disposal of material therefrom. The Government shall have no responsibility under this Agreement for the operation and maintenance of the local service facilities or the operation and maintenance of any other facilities provided by the Non - Federal Sponsor or a third party. ARTICLE III - LANDS, RELOCATIONS, AND PUBLIC LAW 91 -646 COMPLIANCE A. The Government, after consultation with the Non- Federal Sponsor, shall determine the lands, easements, or rights -of -way necessary for the construction, operation, and maintenance of the general navigation features, including those lands, easements, or rights -of -way necessary for the borrowing of material, the disposal of dredged or excavated material, or relocations, and including those lands, easements, or rights -of -way that the Government determines to be subject to the navigation servitude. The Government in a timely manner shall provide the Non - Federal Sponsor with general written descriptions, including maps as appropriate, of the lands, easements, or rights -of -way that the Government determines the Non - Federal Sponsor must provide, in detail sufficient to enable the Non - Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non - Federal Sponsor with a written notice to proceed with acquisition of such lands, easements, or rights -of -way. Prior to the end of the period of construction, or the subsequent period of construction, as applicable, the Non - Federal Sponsor shall acquire all lands, easements, or rights -of -way necessary for the construction of the general navigation features, as set forth in such descriptions. Furthermore, prior to issuance of the 10 So solicitation for each Government contract for construction, operation, and maintenance of the Slaw } general navigation features or prior to the Government incurring any financial obligation for construction, operation, and maintenance it elects to perform with its own forces, the Non - Federal Sponsor shall acquire all lands, easements, or rights -of -way the Government determines the Non - Federal Sponsor must provide for that work and shall provide the Government with authorization for entry thereto. B. The Government, after consultation with the Non - Federal Sponsor, shall determine the relocations necessary for the construction, operation, and maintenance of the general navigation features, including those necessary to enable the borrowing of material or the disposal of dredged or excavated material. The Government in a timely manner shall provide the Non - Federal Sponsor with general written descriptions, including maps as appropriate, of such relocations in detail sufficient to enable the Non - Federal Sponsor to fulfill its obligations under this paragraph, and shall provide the Non - Federal Sponsor with a written notice to proceed with such relocations. Unless the Government agrees to a later date in writing, prior to issuance of the solicitation for each Government contract for construction, operation, and maintenance of the general navigation features or prior to the Government incurring any financial obligation for construction, operation, and maintenance it elects to perform by its own forces, the Non - Federal Sponsor shall prepare or ensure the preparation of plans and specifications for, and perform or ensure the performance of, all relocations the Government determines to be necessary for that work. C. Until the Govemment furnishes the Non - Federal Sponsor with the results of the final accounting pursuant to Article VI.D. of this Agreement, or the credit afforded pursuant to Article II.I. of this Agreement equals the 10 percent amount, whichever occurs later, the Non - Federal Sponsor in a timely manner shall provide the Government with such documents as are sufficient to enable the Government to determine the value of any contribution provided pursuant to paragraph A. or B. of this Article. Upon receipt of such documents the Government in a timely manner shall afford credit for the value of such contribution in accordance with Article II.I of this Agreement. D. The Non - Federal Sponsor shall comply with the applicable provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Public Law 91 -646, as amended by Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (Public Law 100 -17), and the Uniform Regulations contained in 49 C.F,R. Part 24, in acquiring lands, easements, or rights -of -way necessary for the construction, operation, and maintenance of the general navigation features, including those necessary for relocations, the borrowing of material, or the disposal of dredged or excavated material, and shall inform all affected persons of applicable benefits, policies, and procedures in connection with said Act. ARTICLE IV - CREDIT FOR VALUE OF LANDS AND RELOCATIONS A. The Non - Federal Sponsor shall receive credit in accordance with Article II.I of this Agreement for the value of the lands, easements, or rights -of -way that the Non - Federal Sponsor must provide pursuant to Article III of this Agreement, and for the value of the relocations that 11 the Non - Federal Sponsor must perform or for which it must ensure performance pursuant to Article III of this Agreement. However, the Non - Federal Sponsor shall not receive credit for the Nord value of any lands, easements, rights -of -way, or relocations that have been provided previously as an item of cooperation for another Federal project. The Non - Federal Sponsor also shall not receive credit for the value of lands, easements, rights -of -way, or relocations to the extent that such items are provided or performed using Federal program funds unless the Federal agency providing the Federal program funds verifies in writing that such credit is expressly authorized by statute. B. For the sole purpose of affording credit in accordance with this Agreement, the value of lands, easements, and rights -of -way, including those necessary for the borrowing of material, the disposal of dredged or excavated material, or relocations other than those the Government acquires on behalf of the Non - Federal Sponsor pursuant to Article II.D of this Agreement, shall be the fair market value of the real property interests, plus certain incidental costs of acquiring those interests, as determined in accordance with the provisions of this paragraph. 1. Date of Valuation. The fair market value of lands, easements, or rights -of -way owned by the Non - Federal Sponsor on the effective date of this Agreement shall be the fair market value of such real property interests as of the date the Non - Federal Sponsor provides the Government with authorization for entry thereto. The fair market value of lands, easements, or rights -of -way acquired by the Non - Federal Sponsor after the effective date of this Agreement shall be the fair market value of such real property interests at the time the interests are acquired. 2. General Valuation Procedure. Except as provided in paragraph B.3 or B.4 of this Article, the fair market value of lands, easements, or rights -of -way shall be determined in accordance with paragraph B.2.a. of this Article, unless thereafter a different amount is determined to represent fair market value in accordance with paragraph 13.2.b. of this Article. a. The Non - Federal Sponsor shall obtain, for that real property interest, an appraisal that is prepared by a qualified appraiser who is acceptable to the Non - Federal Sponsor and the Government. The Non - Federal Sponsor shall provide the Government with the appraisal no later than 6 months after the Non - Federal Sponsor provides the Government with an authorization for entry for such real property interest, or, in the event an authorization for entry is not required, no later than the end of the period of construction or the end of the subsequent period of construction, as applicable. The appraisal must be prepared in accordance with the applicable rules of just compensation, as specified by the Government. The fair market value shall be the amount set forth in the Non - Federal Sponsor's appraisal, if such appraisal is approved by the Government. In the event the Government does not approve the Non - Federal Sponsor's appraisal, the Non - Federal Sponsor may obtain a second appraisal, and the fair market value shall be the amount set forth in the Non - Federal Sponsor's second appraisal, if such appraisal is approved by the Government. In the event the Government does not approve the Non- Federal Sponsor's second appraisal, the Non - Federal Sponsor chooses not to obtain a second appraisal, or the Non - Federal Sponsor does not provide the first appraisal as required in this paragraph, the Government shall obtain an appraisal, and the fair market value shall be the amount set forth in the Government's appraisal, if such appraisal is approved by the Non - Federal Sponsor. In the event the Non - Federal Sponsor does not approve the Government's appraisal, 12 a j i a , the Government, after consultation with the Non - Federal Sponsor, shall consider the %Ilkor." Government's and the Non - Federal Sponsor's appraisals and determine an amount based thereon, which shall be deemed to be the fair market value. b. Where the amount paid or proposed to be paid by the Non - Federal Sponsor for the real property interest exceeds the amount determined pursuant to paragraph B.2.a. of this Article, the Government, at the request of the Non - Federal Sponsor, shall consider all factors relevant to determining fair market value and, in its sole discretion, after consultation with the Non - Federal Sponsor, may approve in writing an amount greater than the amount determined pursuant to paragraph B.2.a of this Article, but not to exceed the amount actually paid or proposed to be paid. If the Government approves such an amount, the fair market value shall be the lesser of the approved amount or the amount paid by the Non - Federal Sponsor, but no less than the amount determined pursuant to paragraph B.2.a of this Article. 3. Eminent Domain Valuation Procedure. For lands, easements, or rights -of -way acquired by eminent domain proceedings instituted after the effective date of this Agreement, the Non - Federal Sponsor shall, prior to instituting such proceedings, submit to the Government notification in writing of its intent to institute such proceedings and an appraisal of the specific real property interests to be acquired in such proceedings. The Government shall have 60 days after receipt of such a notice and appraisal within which to review the appraisal, if not previously approved by the Government in writing. a. If the Government previously has approved the appraisal in writing, or if the Government provides written approval of, or takes no action on, the appraisal within such 60 -day period, the Non - Federal Sponsor shall use the amount set forth in such appraisal as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. b. If the Government provides written disapproval of the appraisal, including the reasons for disapproval, within such 60 -day period, the Government and the Non- Federal Sponsor shall consult in good faith to promptly resolve the issues or areas of disagreement that are identified in the Government's written disapproval. If, after such good faith consultation, the Government and the Non - Federal Sponsor agree as to an appropriate amount, then the Non - Federal Sponsor shall use that amount as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. If, after such good faith consultation, the Government and the Non - Federal Sponsor cannot agree as to an appropriate amount, then the Non - Federal Sponsor may use the amount set forth in its appraisal as the estimate of just compensation for the purpose of instituting the eminent domain proceeding. c. For lands, easements, or rights -of -way acquired by eminent domain proceedings instituted in accordance with paragraph B.3. of this Article, fair market value shall be either the amount of the court award for the real property interests taken, to the extent the Government determined such interests are necessary for the construction, operation, and maintenance of the general navigation features, or the amount of any stipulated settlement or portion thereof that the Government approves in writing. 13 Now 4. Incidental Costs. For lands, easements, or rights -of -way acquired by the Non- Federal Sponsor within a five -year period preceding the effective date of this Agreement, or at any time after the effective date of this Agreement, the value of the interest shall include the documented incidental costs of acquiring the interest, as determined by the Government, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. In the event the Government modifies its determination made pursuant to Article III.A of this Agreement, the Non - Federal Sponsor shall receive credit for the documented incidental costs associated with preparing to acquire lands, easements, or rights -of -way identified in the original determination, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. Such incidental costs shall include, but not necessarily be limited to, closing and title costs, appraisal costs, survey costs, attorney's fees, plat maps, and mapping costs, as well as the actual amounts expended for payment of any Public Law 91 -646 relocation assistance benefits provided in accordance with Article III.D of this Agreement. C. For the sole purpose of affording credit in accordance with this Agreement, the value of lands, easements, and rights -of -way, including those necessary for the borrowing of material, the disposal of dredged or excavated material, or relocations, that the Government acquires on behalf of the Non - Federal Sponsor pursuant to Article II.D of this Agreement shall be the fair market value of the real property interests, plus certain incidental costs of acquiring those interests, as determined in accordance with the provisions of this paragraph. 1. The fair market value of such real property interests shall be the amount paid by the Government. 2. The value of the interest shall include the documented incidental costs of acquiring the interest. Such incidental costs shall include, but not necessarily be limited to, closing and title costs, appraisal costs, survey costs, attorney's fees, plat maps, and mapping costs, as well as the actual amounts expended for payment of any Public Law 91 -646 relocation assistance benefits. t D. After consultation with the Non - Federal Sponsor, the Government shall determine the value of relocations in accordance with the provisions of this paragraph. 1. For a relocation other than a highway or a utility, the value shall be only that portion of relocation costs that the Government determines is necessary to provide a functionally equivalent facility, reduced by depreciation, as applicable, and by the salvage value of any removed items. 2. For a relocation of a highway, the value shall be only that portion of relocation costs that would be necessary to accomplish the relocation in accordance with the design standard that the State of Alaska would apply under similar conditions of geography and traffic load, reduced by the salvage value of any removed items. 3. For a relocation of a utility, the value shall be only that portion of relocation costs borne by the Non - Federal Sponsor that the Government determines is necessary to provide 14 • s k , a functionally equivalent facility, reduced by depreciation, as applicable, and by the salvage value of any removed items. 4. Crediting for relocations performed within the Project boundaries is subject to satisfactory compliance with applicable federal labor laws covering non - Federal construction, including, but not limited to the Davis -Bacon Act (40 USC 276a et seq), the Contract Work Hours and Safety Standards Act (40 USC 327 et seq), and the Copeland Anti- Kickback Act (40 USC 276c). Crediting may be withheld, in whole or in part, as a result of the Non - Federal Sponsor's failure to comply with its obligations under these laws. 5. Relocation costs shall include, but not necessarily be limited to, actual costs of performing the relocation; planning, engineering and design costs; supervision and administration costs; and documented incidental costs associated with performance of the relocation, but shall not include any costs due to betterments, as determined by the Government, nor any additional cost of using new material when suitable used material is available. Relocation costs shall be subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. ARTICLE V - PROJECT COORDINATION TEAM A. To provide for consistent and effective communication, the Non - Federal Sponsor and the Government, not later than 30 days after the effective date of this Agreement, shall appoint named senior representatives to a Project Coordination Team. Thereafter, the Project Coordination Team shall meet regularly until the end of the period of construction and during each subsequent period of construction. The Government's Project Manager and a counterpart named by the Non - Federal Sponsor shall co -chair the Project Coordination Team. B. The Government's Project Manager and the Non - Federal Sponsor's counterpart shall keep the Project Coordination Team infonned of the progress of construction and of significant pending issues and actions, and shall seek the views of the Project Coordination Team on matters that the Project Coordination Team generally oversees. C. Until the end of the period of construction and during each subsequent period of construction, the Project Coordination Team shall generally oversee the Project, including but not necessarily limited to matters related to design; plans and specifications; scheduling; real property, relocation, and removal requirements; real property acquisition; contract awards or modifications; contract costs; the application of and compliance with the Davis -Bacon Act, Contract Work Hours and Safety Standards Act and the Copeland Anti- Kickback Act for relocations; the Government's cost projections; final inspection of the entire Project or functional portions of the Project; preparation of the management plan for proposed dredged or excavated material disposal; anticipated requirements for operation and maintenance of the general navigation features; and other Project - related matters. The Project Coordination Team also shall generally oversee the coordination of schedules for the Project and the local service facilities. Oversight of the Projcct shall be consistent with a project management plan developed by the Government after consultation with the Non- Federal Sponsor. 15 D. The Project Coordination Team may make recommendations that it deems warranted to the District Engineer on Project - related matters that the Project Coordination Team generally oversees, including suggestions to avoid potential sources of dispute. The Government in good faith shall consider the recommendations of the Project Coordination Team. The Government, having the legal authority and responsibility for construction of the general navigation features, has the discretion to accept or reject, in whole or in part, the Project Coordination Team's recommendations. E. The costs of participation in the Project Coordination Team shall be included in the total cost of construction of the general navigation features and shared in accordance with the provisions of this Agreement. ARTICLE VI - METHOD OF PAYMENT A. Until the Government furnishes the Non - Federal Sponsor with the results of the final accounting, the Government shall maintain current records of contributions provided by the parties and current projections of the total cost of construction of the general navigation features and costs due to additional work under Article ILB.,1I.D., ILN., or 11.0. of this Agreement. At least quarterly during the period of construction and during each subsequent period of construction, if applicable, the Government shall provide the Non - Federal Sponsor with a report setting forth all contributions provided to date and the current projections of the total cost of construction of the general navigation features, of total costs due to additional work under Article II.B., ILD. II.N., or II.O. of this Agreement, of the Non - Federal Sponsor's total contributions required in accordance with Articles LLB., II.D., II.G., II.N., and II.O. of this Agreement, of the non - Federal proportionate share, of the funds required from the Non - Federal Sponsor for the upcoming fiscal year, of the credit to be afforded pursuant to Article II.1. of this Agreement for the value of lands, easements, rights -of way, or relocations contributed before the end of the period of construction and during any subsequent period of construction, of the 10 percent amount, of the principal amount, and of the installments to be paid in accordance with paragraph E.2. of this Article. Thereafter, until the outstanding portion of the principal amount equals $0, the Government, at least annually, shall provide the Non - Federal Sponsor with a report setting forth the outstanding portion of the principal amount and the current projection of Nod the remaining installments to be paid in accordance with paragraph E.2. of this Article. On the effective date of this Agreement, the total cost of construction of the general navigation features is projected to be $ 5,186,000 and the Non - Federal Sponsor's contribution required under Article 1I.G. of this Agreement is projected to be $ 518,600. These amounts are subject to adjustment by the Government, after consultation with the non - Federal Sponsor, and are not to be construed as the total financial responsibilities of the Government and the Non - Federal Sponsor. B. The Non - Federal Sponsor shall provide the contribution required by Article II.G. of this Agreement in accordance with the provisions of this paragraph. 1. Not less than 30 calendar days prior to the scheduled date for either issuance of the solicitation for the first construction contract or commencement of construction using the Government's own forces, the Government shall notify the Non - Federal Sponsor in writing of 16 such scheduled date and the funds the Government determines, after consideration of the funds a non - Federal interest contributed under the Design Agreement, to be required from the Non - Federal Sponsor to meet the non - Federal proportionate share of projected financial obligations for construction through the first fiscal year of construction, including the non - Federal proportionate share of financial obligations for construction incurred prior to the commencement of the period of construction. Not later than such scheduled date, the Non - Federal Sponsor shall provide the Government with the full amount of the required funds by delivering a check payable to "FAO, USAED, ALASKA" to the District Engineer, or verifying to the satisfaction of the Government that the Non - Federal Sponsor has deposited the required funds in an escrow or other account acceptable to the Government, with interest accruing to the Non - Federal Sponsor, or presenting the Government with an irrevocable letter of credit acceptable to the Government for the required funds, or providing an Electronic Funds Transfer of the required funds in accordance with procedures established by the Government. 2. For the second and subsequent fiscal years of construction, the Government shall notify the Non - Federal Sponsor in writing, no later than 60 calendar days prior to the beginning of that fiscal year, of the funds the Govemment determines to be required from the Non - Federal Sponsor to meet the non - Federal proportionate share of projected financial obligations for construction for that fiscal year (including the construction of or modifications to a dredged or excavated material disposal facility during any subsequent period of construction). No later than 30 calendar days prior to the beginning of the fiscal year, the Non - Federal Sponsor shall make the full amount of the required funds for that fiscal year available to the Government through any of the payment mechanisms specified in paragraph B.1. of this Article. 3. The Government shall draw from the funds provided by the Non - Federal Sponsor such sums as the Government deems necessary to cover: (a) the non - Federal proportionate share of financial obligations for construction incurred prior to the commencement of the period of construction; and (b) the non- Federal proportionate share of financial obligations for construction as they are incurred during the period of construction or during the subsequent period of construction, as applicable. 4. If at any time during the period of construction or any subsequent period of construction the Government detemtines that additional funds will be needed from the Non - Federal Sponsor to cover the non - Federal proportionate share of projected financial obligations for construction for the current fiscal year, the Government shall notify the Non - Federal Sponsor in writing of the additional funds required and provide an explanation of why additional funds are required, and the Non - Federal Sponsor, no later than 60 calendar days from receipt of such notice, shall make the additional required funds available through any of the payment mechanisms specified in paragraph B.1. of this Article. C. In advance of the Government incurring any financial obligation associated with additional work under Article II.B., ILD., II.N., or II.O, of this Agreement, the Non - Federal Sponsor shall provide the Government with the full amount of the funds required to pay for such financial obligation through any of the payment mechanisms specified in paragraph B. of this Article. The Government shall draw from the funds provided by the Non - Federal Sponsor such �. sums as the Government deems necessary to cover the Government's financial obligations for 17 s i rre such additional work as they are incurred. In the event the Government determines that the Non- Federal Sponsor must provide additional funds to meet such financial obligations, the Nod Government shall notify the Non - Federal Sponsor in writing of the additional funds required and provide an explanation of why additional funds are required. Within 30 calendar days thereafter, the Non - Federal Sponsor shall provide the Government with the full amount of the additional required funds through any of the payment mechanisms specified in paragraph B. of this Article. D. Upon completion of the period of construction or termination of this Agreement before the end of the period of construction, and upon resolution of all relevant proceedings, claims, and appeals, the Government shall conduct a final accounting and furnish the Non - Federal Sponsor with the results of the final accounting. The Government may perform an interim accounting, if requested by the Non - Federal Sponsor. 1. The final accounting shall determine the total cost of construction of the general navigation features before the end of the period of construction, each party's contribution provided thereto, and each party's required share thereof. The final accounting also shall determine total costs due to additional work before the end of the period of construction under Article II.B., ILD., II.N., or II.O. of this Agreement and the Non - Federal Sponsor's contribution provided before the end of the period of construction in accordance with Article II.B., ILD., rI.N., or II.O. of this Agreement. a. In the event the final accounting shows that the total contribution provided by the Non - Federal Sponsor before the end of the period of construction is less than its required share of the total cost of construction of the general navigation features before the end of the period of construction plus costs due to additional work before the end of the period of construction under Article II.B., II.D., II.N., or II.0. of this Agreement, the Non - Federal Sponsor shall, no later than 90 calendar days after receipt of written notice, make a payment to the Government of whatever sum is required to meet the Non - Federal Sponsor's required share of the total cost of construction of the general navigation features before the end of the period of construction plus costs due to additional work before the end of the period of construction under Article 11.B., II.D., II.N., or II.O. of this Agreement by delivering a check payable to "FAO, USAED, ALASKA" to the District Engineer or providing an Electronic Funds Transfer in accordance with procedures established by the Government. b. In the event the final accounting shows that the total contribution provided by the Non - Federal Sponsor before the end of the period of construction exceeds its required share of the total cost of construction of the general navigation features before the end of the period of construction plus costs due to additional work before the end of the period of construction under Article II.B., II.D., II.N., or rI.O. of this Agreement, the Goverment shall, subject to the availability of funds, refund the excess to the Non - Federal Sponsor no later than 90 calendar days after the final accounting is complete. In the event existing funds are not available to refund the excess to the Non - Federal Sponsor, the Government shall seek such appropriations as are necessary to make the refund. 18 ;II 5,3 2. The final accounting also shall determine the 10 percent amount and the value, as determined in accordance with Article IV of this Agreement, of lands, easements, rights -of- way, or relocations provided before the end of the period of construction. E. The Non - Federal Sponsor shall pay the principal amount required by Article II.1. of this Agreement in accordance with the provisions of this paragraph. 1. Before furnishing the Non - Federal Sponsor with the results of the final accounting, the Government shall calculate the principal amount and the annual installments, which installments shall be substantially equal. At the time the Government furnishes the Non - Federal Sponsor with the results of the final accounting, the Government shall notify the Non - Federal Sponsor in writing of the principal amount and the annual installments. The Government shall recalculate the annual installments at five year intervals and shall notify the Non - Federal Sponsor in writing of the recalculated annual installments. In calculating or recalculating the annual installments, the Government shall amortize the principal amount over a period of 30 years (hereinafter the "payment period "), beginning on the date the Government notifies the Non - Federal Sponsor of the principal amount, using an interest rate determined by the Secretary of the Treasury. In the case of the initial calculation, the interest rate shall be determined by the Secretary of the Treasury taking into consideration the average market yields on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the payment period during the month preceding the fiscal year in which the Government awards the first contract for construction of the general navigation features or commences construction using its own forces, plus a premium of one - eighth of one percentage point for transaction costs. In the case of recalculations, the interest rate shall be determined by the Secretary of the Treasury taking into consideration such average market yields during the month preceding the fiscal year in which the sixth installment is to be paid, and thereafter during the month preceding the fiscal year in which each fifth installment is to be paid, plus a premium of one -eighth of one percentage point for transaction costs. 2. The Non - Federal Sponsor shall pay the installments calculated or recalculated pursuant to paragraph E.1. of this Article each year on the anniversary of the date the skiwy <_.. Government notifies the Non - Federal Sponsor of the principal amount, over a period not to exceed the payment period, by delivering a check payable to "FAO, USAED, ALASKA" to the District Engineer or providing an Electronic Funds Transfer in accordance with procedures established by the Government. 3. Notwithstanding paragraph E.2. of this Article, the Non - Federal Sponsor, in its sole discretion, may prepay the principal amount, in whole or in part, at any time. Notwithstanding paragraph E.1. of this Article, there shall be no charges for interest on any portion of the principal amount prepaid within 90 days after the Government notifies the Non - Federal Sponsor of the principal amount. 4. After the Government furnishes the Non - Federal Sponsor with the results of the final accounting, the Government shall afford credit against the principal amount for the value, as determined in accordance with Article IV of this Agreement, of lands, easements, rights -of -way, or relocations provided after the period of construction; provided, however, -that 19 the amount of credit afforded pursuant to this paragraph shall not exceed the principal amount. Credit shall be afforded against the portion of the principal amount that is outstanding at the time the credit is afforded. if the credit exceeds the portion of the principal amount outstanding at the time credit is afforded, the Government shall afford the excess credit against the portion of the principal amount that the Non - Federal Sponsor has paid at the time the credit is afforded, by refunding such portion to the Non - Federal Sponsor, subject to the availability of funds. In the event existing funds are not available to refund such portion to the Non - Federal Sponsor, the Government shall seek such appropriations as are necessary to make the refund. 5. In the event there is a subsequent period of construction or this Agreement is terminated after the end of the period of construction, the Government, after completion of the construction of the applicable dredged or excavated material disposal facility or facilities, and upon resolution of all relevant proceedings, claims, and appeals, shall amend the final accounting (including recalculating the 10 percent amount), recalculate the principal amount and the principal amount outstanding, and, if the payment period has not elapsed, recalculate the annual installments by amortizing the principal amount outstanding over the remaining portion of the payment period, and shall furnish the Non - Federal Sponsor with the results of the amended final accounting and the aforesaid recalculations. Thereafter, if the payment period has not elapsed, the Non - Federal Sponsor shall pay the aforesaid recalculated installments in lieu of the previously calculated installments. If the payment period has elapsed, the Non - Federal Sponsor, not later than 90 days after being furnished the aforesaid results, shall pay to the Government any principal amount outstanding by delivering a check payable to "FAO, USAED, ALASKA" to the District Engineer or providing an Electronic Funds Transfer in accordance with procedures established by the Government. ARTICLE VII - DISPUTE RESOLUTION As a condition precedent to a party bringing any suit for breach of this Agreement, that party must first notify the other party in writing of the nature of the purported breach and seek in good faith to resolve the dispute through negotiation. lithe parties cannot resolve the dispute through negotiation, they may agree to a mutually acceptable method of non - binding alternative dispute resolution with a qualified third party acceptable to both parties. The parties shall each pay 50 percent of any costs for the services provided by such a third party as such costs are incurred. The existence of a dispute shall not excuse the parties from performance pursuant to this Agreement. ARTICLE VIII - OPERATION AND MAINTENANCE A. The Government, as it determines necessary, shall operate and maintain the general navigation features and shall be responsible for all financial obligations for operation and maintenance of the general navigation features. B. The Non - Federal Sponsor hereby authorizes the Government to enter, at reasonable times and in a reasonable manner, upon property that the Non - Federal Sponsor now or hereafter 20 Ned I , f t +, owns or controls for the purpose of operating and maintaining the general navigation features. However, nothing contained herein, shall convey to the Government any interest in real property owned or controlled by the Non - Federal Sponsor. C. The Non - Federal Sponsor hereby authorizes the Government to perform all activities on the lands, easements, and rights -of -way provided by the Non - Federal Sponsor to enable the disposal of dredged or excavated material that, in the Government's sole discretion, are necessary for the operation, maintenance, or management of the dredged or excavated material disposal facilities including, but not necessarily limited to, construction, operation, and maintenance of the dredged or excavated material disposal facilities; disposal of dredged or excavated material associated with the construction, operation, and maintenance of the general navigation features. In addition, as between the Government and the Non - Federal Sponsor, for so long as a dredged or excavated material disposal facility is required for the construction, operation, and maintenance of the general navigation features as determined by the Government, the Government shall have the full authority and exclusive right to operate, maintain, and manage such facility including the exclusive right to remove, use or reuse the materials placed therein for any purpose without charge to the Government. D. Subject to applicable Federal laws and regulations and for so long as the Project remains authorized, and commensurate with the Government's operation and maintenance of the general navigation features, the Non - Federal Sponsor, at no cost to the Government, shall operate and maintain the local service facilities in a manner compatible with the authorized purposes of the Project including dredging or excavation and disposal of material therefrom. The Non - Federal Sponsor shall be responsible for taking all actions to enable such operation and maintenance. ARTICLE IX - HOLD AND SAVE Subject to the provisions of Article XXII of this Agreement, the Non - Federal Sponsor shall hold and save the Government free from all damages arising from the construction, operation, and maintenance of the Project, any betterments, and the local service facilities, except for damages due to the fault or negligence of the Government or its contractors. ARTICLE X - MAINTENANCE OF RECORDS AND AUDIT A. Not later than 60 calendar days after the effective date of this Agreement, the Government and the Non - Federal Sponsor shall develop procedures for keeping books, records, documents, or other evidence pertaining to costs and expenses incurred pursuant to this Agreement. These procedures shall incorporate, and apply as appropriate, the standards for financial management systems set forth in the Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments at 32 C.F.R. Section 33.20. The Government and the Non - Federal Sponsor shall maintain such books, records, documents, or other evidence in accordance with these procedures and for a minimum of three years after completion of the accounting for which such books, records, documents, or other evidence were 21 I i ' I ( �.7, • required. To the extent permitted under applicable Federal laws and regulations, the } Government and the Non - Federal Sponsor shall each allow the other to inspect such books, records, documents, or other evidence. B. In accordance with 32 C.F.R. Section 33.26, the Non - Federal Sponsor is responsible for complying with the Single Audit Act of 1984, 31 U.S.C. Sections 7501 -7507, as implemented by Office of Management and Budget (OMB) Circular No. A -133 and Department of Defense Directive 7600.10. Upon request of the Non - Federal Sponsor and to the extent permitted under applicable Federal laws and regulations, the Government shall provide to the Non - Federal Sponsor and independent auditors any information necessary to enable an audit of the Non - Federal Sponsor's activities under this Agreement. The costs of any non - Federal audits performed in accordance with this paragraph before the Government furnishes the Non - Federal Sponsor with the results of the final accounting shall be allocated in accordance with the provisions of OMB Circulars A -87 and A -133, and such costs as are allocated to the Project shall be included in the total cost of construction of the general navigation features and shared in accordance with the provisions of this Agreement. C. In accordance with 31 U.S.C. Section 7503, the Government may conduct audits in addition to any audit that the Non - Federal Sponsor is required to conduct under the Single Audit Act. Any such Government audits shall be conducted in accordance with Government Auditing Standards and the cost principles in OMB Circular No. A -87 and other applicable cost principles and regulations. The costs of Govermnent audits performed in accordance with this paragraph before the Government furnishes the Non - Federal Sponsor with the results of the final accounting shall be included in the total cost of construction of the general navigation features and shared in accordance with the provisions of this Agreement. ARTICLE XI - FEDERAL AND STATE LAWS In the exercise of their respective rights and obligations under this Agreement, the Non- Federal Sponsor and the Government agree to comply with all applicable Federal and State laws and regulations, including, but not limited to, Section 601 of the Civil Rights Act of 1964, Public Law 88 -352 (42 U.S.C. 2000d), Department of Defense Directive 5500.11 issued pursuant Nod thereto, as well as Army Regulation 600 -7, entitled "Nondiscrimination on the Basis of Handicap in Programs and Activities Assisted or Conducted by the Department of the Army," and all applicable federal labor standards requirements including, but not limited to, 40 U.S.C. 3141- 3148 and 40 U.S.C. 3701 -3708 (revising, codifying and enacting without substantive change the provision of the Davis -Bacon Act (40 U.S.C. 276a et seq.), the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq.) and the Copeland Anti- Kickback Act (40 U.S.C. 276c). ARTICLE XII - RELATIONSHIP OF PARTIES A. In the exercise of their respective rights and obligations under this Agreement, the Government and the Non - Federal Sponsor each act in an independent capacity, and neither is to be considered the officer, agent, or employee of the other. 22 1 B. In the exercise of its rights and obligations under this Agreement, neither party shall provide, without the consent of the other party, any contractor with a release that waives or purports to waive any rights the other party may have to seek relief or redress against that contractor either pursuant to any cause of action that the other party may have or for violation of any law. ARTICLE XIII - OFFICIALS NOT TO BENEFIT No member of or delegate to the Congress, nor any resident commissioner, shall be admitted to any share or part of this Agreement, or to any benefit that may arise therefrom. ARTICLE XIV - TERMINATION OR SUSPENSION A. If at any time the Non - Federal Sponsor fails to fulfill its obligations under Articles II.Q., VI and VIII.D. of this Agreement, the Assistant Secretary of the Army (Civil Works) shall terminate this Agreement or suspend future performance under this Agreement unless he determines that continuation of work on the general navigation features is in the interest of the United States or is necessary in order to satisfy agreements with any other non - Federal interests in connection with the Project. B. If the Government fails to receive annual appropriations in amounts sufficient to meet its share of scheduled expenditures for the general navigation features for the then- current or upcoming fiscal year, the Government shall so notify the Non - Federal Sponsor in writing, and 60 calendar days thereafter either party may elect without penalty to terminate this Agreement or to suspend future performance under this Agreement. In the event that either party elects to suspend future performance under this Agreement pursuant to this paragraph, such suspension shall remain in effect until such time as the Government receives sufficient appropriations or until either the Government or the Non - Federal Sponsor elects to terminate this Agreement, whichever occurs first. C. In the event that either party elects to terminate this Agreement pursuant to this Article or Article XV.D. of this Agreement, both parties shall conclude their activities relating to the Project and proceed to a final accounting in accordance with Article VI.D. of this Agreement, or an amended accounting in accordance with Article VI.E.5. of this Agreement, as applicable. D. Any termination of this Agreement or suspension of future performance under this Agreement in accordance with this Article or Article XV.D. of this Agreement shall not relieve the parties of liability for any obligation previously incurred. Any delinquent payment owed by the Non - Federal Sponsor shall be charged interest at a rate, to be determined by the Secretary of the Treasury, equal to 150 per centum of the average bond equivalent rate of the 13 -week Treasury bills auctioned immediately prior to the date on which such payment became delinquent, or auctioned immediately prior to the beginning of each additional 3 -month period if the period of delinquency exceeds 3 months. 23 • • ARTICLE XV - HAZARDOUS SUBSTANCES A. After execution of this Agreement and upon direction by the District Engineer, the Non- Federal Sponsor shall perform, or cause to be performed, any investigations for hazardous substances that the Government or the Non - Federal Sponsor determines to be necessary to identify the existence and extent of any hazardous substances regulated under the Comprehensive Environmental Response, Compensation, and Liability Act (hereinafter "CERCLA "), 42 U.S.C. Sections 9601 -9675, that may exist in, on, or under lands, easements, or rights -of -way that the Government determines, pursuant to Article III of this Agreement, to be necessary for the construction, operation, and maintenance of the general navigation features. However, for lands, easements, or rights -of -way that the Government determines to be subject to the navigation servitude, only the Government shall perform such investigations unless the District Engineer provides the Non - Federal Sponsor with prior specific written direction, in which case the Non - Federal Sponsor shall perform such investigations in accordance with such written direction. 1. All actual costs incurred by the Non - Federal Sponsor or the Government before the end of the period of construction or during any subsequent period of construction for such investigations for hazardous substances shall be included in the total cost of construction of the general navigation features and shared in accordance with the provisions of this Agreement, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. 2. All actual costs incurred by the Non - Federal Sponsor after the period of construction, other than during a subsequent period of construction, for such investigations for hazardous substances shall be considered incidental costs under Article IV.B.4. of this Agreement and be credited pursuant to Article II.I. of this Agreement, subject to an audit in accordance with Article X.C. of this Agreement to determine reasonableness, allocability, and allowability of costs. 3. All actual costs incurred by the Government after the period of construction, other than during a subsequent period of construction, for such investigations for hazardous substances shall be considered financial obligations for operation and maintenance of the general navigation features and shared in accordance with Article VIII.A. of this Agreement. B. The Non - Federal Sponsor may perform any investigations it determines to be necessary to identify the existence and extent of any hazardous substances regulated under CERCLA that may exist in, on, or under lands, easements, or rights -of -way necessary solely for the construction, operation, and maintenance of the local service facilities. However, for any of those lands that the Government determines to be subject to the navigation servitude, the Non- Federal Sponsor must obtain prior written instructions from the District Engineer regarding the method of testing and must perform such investigations only in accordance with those instructions. The costs of any investigations performed under this paragraph shall be borne entirely by the Non - Federal Sponsor. The Government shall have no obligation under this Agreement for the costs of any investigations performed under this paragraph. 24 i _ I Iq • • • C. In the event it is discovered through any investigation for hazardous substances or other means that hazardous substances regulated under CERCLA exist in, on, or under any lands, easements, or rights-of-way that the Government determines, pursuant to Article 111 of this i Agreement, to be necessary for the construction, operation, and maintenance of the general I navigation features, the Non- Federal Sponsor and the Government shall, in addition to providing any other notice required by applicable law, provide prompt written notice to each other, and the Non- Federal Sponsor shall not proceed with the acquisition of the real property interests until both parties agree that the Non- Federal Sponsor should proceed. In the event it is discovered through any means that hazardous substances regulated under CERCLA exist in, on, or under any lands, easements, or rights -of -way necessary for the construction, operation, and maintenance of the local service facilities, the Non - Federal Sponsor and the Government shall, in addition to providing any other notice required by applicable law, provide prompt written notice to each other. D. The Government and the Non - Federal Sponsor shall determine whether to initiate construction, operation, and maintenance of the general navigation features, or, if already in construction, operation, and maintenance, whether to continue with construction, operation, and • ■ maintenance of the general navigation features, suspend future performance under this Agreement, or terminate this Agreement for the convenience of the Government, in any ease where hazardous substances regulated under CERCLA are :found to exist in, on, or under any lands, easements, or rights -of -way that the Government determines, pursuant to Article 111 of this Agreement, to be necessary for the construction, operation, and maintenance of the general navigation features, Should the Government and the Non - Federal Sponsor determine to initiate or continue with construction, operation, and maintenance after considering any liability that may arise under CERCLA, the Non- Federal Sponsor shall be responsible, as between the ■ Government and the Non - Federal Sponsor, for the costs of clean -up and response, to include the costs of any studies and investigations necessary to determine an appropriate response to the contamination. Such costs shall not be considered a part of the total cost of construction of the general navigation features. In the event the Non - Federal Sponsor fails to provide any funds necessary to pay for clean up and response costs or to otherwise discharge the Non - Federal Sponsor's responsibilities under this paragraph upon direction by the Government, the Government may, in its sole discretion, either terminate this Agreement for the convenience of the Government, suspend future performance under this Agreement, or continue work on the • general navigation features. The Government shall have no obligation under this Agreement for the costs of any clean -up and response, to include the costs of any studies and investigations necessary to determine an appropriate response to the contamination, on lands, easements, or rights -of -way necessary solely for the local service facilities. E. 1 he Non- Federal Sponsor and the Government shall consult with each other in • accordance with Article V of this Agreement in an effort to ensure that responsible parties bear I � any necessary clean up and response costs as defined in CERCLA. Any decision made pursuant to paragraph D of this Article shall not relieve any third party from any liability that may arise under CERCLA. • 25 1 1 Sire . r 3 • I � F. To the maximum extent practicable, the Government and the Non - Federal Sponsor 1 shall perfonn their responsibilities under this Agreement in a manner that will not cause liability to arise under CERCLA. ARTICLE XVI - NOTICES A. Any notice, request, demand, or other communication required or permitted to be given under this Agreement shall be deemed to have been duly given if in writing and either delivered personally or by telegram or mailed by first - class, registered, or certified mail, as follows: If to the Non - Federal Sponsor: City Manager City of Seward P.O. Box 167 Seward, AK 99664 If to the Government: District Engineer US Army Engineer District, Alaska Post Office Box 6898 Elmendorf AFB, AK 99506 -6898 B. A party may change the address to which such communications are to be directed by giving written notice to the other party in the manner provided in this Article. C. Any notice, request, demand, or other communication made pursuant to this Article Noel shall be deemed to have been received by the addressee at the earlier of such time as it is actually received or seven calendar days after it is mailed. ARTICLE XVII - CONFIDENTIALITY To the extent permitted by the laws governing each party, the parties agree to maintain the confidentiality of exchanged information when requested to do so by the providing party. ARTICLE XVIII - HISTORIC PRESERVATION A. The costs of identification, survey, and evaluation of historic properties incurred before the end of the period of construction or during a subsequent period of construction shall 26 NINO I I be included in the total cost of construction of the general navigation features and shared in accordance with Articles II.F. and II.I. of this Agreement. B. The costs of identification, survey, and evaluation of historic properties incurred after the period of construction, other than during a subsequent period of construction, shall be considered financial obligations for operation and maintenance of the general navigation features and shared in accordance with Article VIII.A. of this Agreement. C. As specified in Section 7(a) of Public Law 93 -291 (16 U.S.C. Section 469c(a)), the costs of archeological data recovery activities associated with historic preservation shall be borne entirely by the Government and shall not be included in the total cost of construction of the general navigation features, up to the statutory limit of one percent of the total amount authorized to be appropriated to the Government for the construction of the general navigation features. D. The Government shall not incur costs for archeological data recovery activities that exceed the statutory one percent limit specified in paragraph C. of this Article unless and until the Assistant Secretary of the Army (Civil Works) has waived that limit in accordance with Section 208(3) of Public Law 96 -515 (16 U.S.C. Section 469c- 2(3)). I. Any costs of archeological data recovery activities that exceed the one percent limit and are incurred before the end of the period of construction or during a subsequent period of construction shall be included in the total cost of construction of the general navigation features and shared in accordance with Articles II.F. and II.I. of this Agreement. 2. Any costs of archeological data recovery activities that exceed the one percent limit and are incurred after the period of construction, other than during a subsequent period of construction, shall be considered financial obligations for operation and maintenance of the general navigation features and shared in accordance with Article VIII.A. of this Agreement. ARTICLE XIX - THIRD PARTY RIGHTS, BENEFITS, OR LIABILITIES Nothing in this Agreement is intended, nor may be construed to create any rights, confer any benefits, or relieve any liability, of any kind whatsoever in any third person not party to this Agreement. ARTICLE XX - NON- LIABILITY OF OFFICERS AND EMPLOYEES Neither any officer, agent, consultant, or employee of the Non - Federal Sponsor, nor any officer, agent, consultant, or employee of the Government, may be charged personally with any liability, or held liable under the terms or provisions of this Agreement, or because of its execution or attempted execution, or because of any breach, attempted breach, or alleged breach thereof, except as provided in Section 912 of the Water Resources Development Act of 1986, Public Law 99 -662, or other applicable law. 27 • 1 1 l ARTICLE XXI - SECTION 902 PROJECT COST LIMITS The Non - Federal Sponsor has reviewed the provisions set forth in Section 902 of the Water Resources Development Act of 1986, Public Law 99 -662, as amended, and understands that Section 902 establishes the maximum cost of the Project and the local service facilities. Notwithstanding any other provision of this Agreement, the Government shall not make a new Project financial obligation, make a Project expenditure, or afford credit toward total cost of construction of the general navigation features for the value of any contribution provided by the Non - Federal Sponsor, if such obligation, expenditure, or credit would result in the total cost of construction of the general navigation features plus the value of any contribution provided by the Non - Federal Sponsor in accordance with Article III of this Agreement plus the costs of the local service facilities exceeding this maximum amount, unless otherwise authorized by law. On the effective date of this Agreement, this maximum amount is estimated to be $16,700,000 as calculated in accordance with ER 1105 -2 -100 using October 1, 1998 price levels and allowances for projected future inflation. The Government shall adjust this maximum amount in accordance with Section 902 of the Water Resources Development Act of 1986, Public Law 99 -662, as amended. ARTICLE XXII - OBLIGATIONS OF FUTURE APPROPRIATIONS A. Nothing herein shall constitute, nor be deemed to constitute, an obligation of future appropriations by the Non - Federal Sponsor where creating such an obligation would be inconsistent with Section 5.01.020 of the code of ordinances of the City of Seward. B. The Non - Federal Sponsor intends to satisfy its obligations under this Agreement. The Non - Federal Sponsor shall include in its budget request or otherwise propose, for each fiscal period, appropriations sufficient to cover the Non - Federal Sponsor's obligations under this Agreement for each year, and will use all reasonable and lawful means to secure the appropriations for that year sufficient to make the payments necessary to fulfill its obligations hereunder. The Non - Federal Sponsor reasonably believes that funds in amounts sufficient to "' discharge these obligations can and will lawfully be appropriated and made available for this purpose. In the event the budget or other means of appropriations does not provide funds in sufficient amounts to discharge these obligations, the Non - Federal Sponsor shall use its best efforts to satisfy any requirements for payments under this Agreement from any other source of funds legally available for this purpose. Further, if the Non - Federal Sponsor is unable to satisfy its obligations hereunder, the Government may exercise any legal rights it has to protect the Government's interests related to this Agreement. 28 i toy 1 tE CERTIFICATE OF AUTHORITY 441116e I, Brad Meyen, do hereby certify that I am the principal legal officer of the CITY OF SEWARD, that the CITY OF SEWARD is a legally constituted public body with full authority and legal capability to perform the terms of the Agreement between the Department of the Army and the CITY OF SEWARD in connection with the Harbor Improvements, Seward, Alaska and to pay damages in accordance with the terms of this Agreement, if necessary, in the event of the I f t failure to perform, as required by Section 221 of Public Law 91 -611 (42 U.S.C. Section 1962d- 5b), and that the persons who have executed this Agreement on behalf of the CITY OF SEWARD have acted within their statutory authority. t� IN WITNESS WHEREOF, I have made and executed this certification this ( 2 day of e , 2003. WOHLFORTH, VASSAR, JOHNSON & BRECHT Attorneys for the City of Seward BRAD YEN City Attorney 30 I 6 CERTIFICATION REGARDING LOBBYING The undersigned certifies, to the best of his or her knowledge and belief that: (l) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrccipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The City of Seward Yuz&zp4it,eAL, g lti Kristin Erchinger 00 Acting City Manager DATE: to /1 o 1.2003 ,0o ae , •, � � � of SE ° �, ' Attest: -.� i` ° ° • p . JEA '" City Jerk 1 • SEAL G'v81 19 : 31 •IffintiO ' r Sponsored by: Hunt '111160 CITY OF SEWARD, ALASKA RESOLUTION 2012 -055 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING CONSTRUCTION OF A SEAWALL TO PROTECT UNDERGROUND UTILITIES LOCATED AT SMIC, IN AN AMOUNT NOT TO EXCEED $40,000 AND APPROPRIATING FUNDS WHEREAS, an erosion problem has existed in the Seward Marine Industrial Center location for years; and WHEREAS, the Global Towers lease site had to be vacated due to the erosion; and WHEREAS, the utilities located near the erosion site are in jeopardy of being undermined; and WHEREAS, utilities to Seward Ship's Dry Dock, a major ship repair company, and to the city owned syncrolift could be lost if the erosion continues unchecked; and WHEREAS, upon approval of this appropriation harbor personnel are poised to begin the City procurement process and mitigate future damage before another winter season starts; and WHEREAS, time is of the essence. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council authorizes construction of a seawall at SMIC to protect underground utilities in an amount not to exceed $40,000. Section 2. Funding in an amount not to exceed $40,000 is appropriated from the General Fund account no. 101 - 0000 - 3071 -0417 to the SMIC General Contracted Services account no. 417- 4500 -5390. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of July, 2012. 1 1 Council Agenda Statement Meeting Date: July 23, 2012 L .C . C � o Through: City Manager, Jim Hunt q p to 0 From: Deputy Harbormaster, Norm Regis Agenda Item: Seward Marine Industrial Center Seawall BACKGROUND & JUSTIFICATION: An erosion problem has existed at Seward Marine Industrial Center (SMIC) for years. Measurements record that the shoreline eroded 13 feet during the period of 2006 to 2009. The Global Towers Lease site has been vacated and relocated due to this erosion issue. Now the utilities for Seward Ships Dry Dock (SSDD) are in jeopardy which could shut down that major boat repair facility (see attached photo). Funds should be appropriated to begin the City's required procurement process as quickly as possible and before winter weather begins. The funds will be appropriated from the General Fund account of 101- 0000 - 3071 -0417 to the SMIC Contracted services account 417 - 4500 -5390. INTENT: Authorizing the City Manager to appropriate $40,000 from the General Fund 101- 0000 - 3071 -0417 account to the 417- 4500 -5390 the SMIC Contracted Services account, to construct a seawall to protect the underground utilities located at SMIC. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: page 26 — There is a Need to continue Developing 1. the Seward Marine Industrial Center as a Vital Source of Employment X for Seward Residents. 2 Strategic Plan: page 7 — Expand utilities throughout the Seward Marine X Industrial Center 3. Other (list): X FISCAL NOTE: Funding in the amount of $40,000.00 will be transferred from the General Fund 101- 0000 -3071- 0417 account to the 417- 4500 -5390 the SMIC Contracted account. Approved by Finance Department: jj/ t ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approve Resolution 2012 - U PP authorizing the City Manager to appropriate $40.000.00 from the General Fund 101- 0000 - 3071 -0417 account to 417- 4500 -5390 the SMIC Contracted Services account, to construct a seawall to protect the underground utilities located at SMIC. —)D\ {' g ';1 F 4 f 'P 3, r } e / r i I x �z ,` . /'C .p j ,pp / : ` t f` :0 , - .:` 7„,. . F AY r { x F Y 6 ak Y . . a 3 j A „,,,Or.:„:",...', .,'„,..'„;,:,..,--„:-.,':,',,',::,":, •••:,-: '.., , -,,,,'.."-,"::::', " "ft.a.,;,"; '..;,,, t,; i(-4i...:,,,--X.-:, :',,;.,. ".„ r„,,,,!,..i" '!:',1-,_1"--.*:.-"l'iy,,"--4,-, 4. 4 Y �: r.. „ "'1• Yo n fF 9 q p $ i k ... ,_,,,:.,,,,,, - „.,........._ .-----,,,,.,..,, ., ,,,,,, •,� ' � act k „.,,, __.,,,,,,,,,,,,,....;,,,.:_.....-- �, t "�A 1r w t , �! � { .„•...,_,,,.,,, ,,,,--,.,,, .... . .... n tf „., ..,. 11 -. ,- ,, f., ...., ,,.,...., . '• .• ' 7' —, ;': , 42,.. - , •,.*‘,,..,444,474t:-.: - - 4-it: ; , ,• : , _. x. 15 .i_S7 - R� ) Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $490,000 FOR THE LOWELL POINT AND SMIC LAGOONS SLUDGE REMOVAL PROJECT, SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN OFFER FROM THE ALASKA CLEAN WATER FUND WITH PAYMENTS SUBJECT TO BI- ANNUAL APPROPRIATION WHEREAS, throughout 2010 and 2011, M.L. Foster and associates submitted reports evaluating the health and needs of Seward's sewer system including: Seward Wastewater Evaluation, Wastewater Facilities Operations & Maintenance Plan (a permit requirement) and a SMIC Lagoon Sludge Survey used to assess the health of the lagoon; and WHEREAS, the Lowell Point lagoon sludge has not been removed in 18 years; and WHEREAS, the SMIC lagoon sludge has not been removed in its 24 -year life; and WHEREAS, removal and disposal of sludge are necessary for good housekeeping, will reduce energy consumption, free up displaced volume, may result in improved performance during peak organic loadings from transient populations and for protection of uninterrupted operation of the nearby prison; and WHEREAS, the Wastewater Department does not have adequate cash reserves in its wastewater fund to finance the project, however, according to the most recent Financial Capacity Assessment it has adequate cash flow in this fund to cover its repayment obligations; and WHEREAS, the City of Seward obtained the necessary financial assistance to complete these projects by way of obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Clean Water Fund; and WHEREAS, the loan money may be used to provide contractual services, engineering, design, planning, permitting, project support and construction management; and WHEREAS, accepting the total loan amount of $490,000 from the Department of Environmental Conservation Clean Water Fund is in the best interest of the city by allowing the city to utilize the funds to invest in critical infrastructure, follow regulations set forth by the Alaska Department of Environmental Conservation and remain in compliance with the current permit; and WHEREAS, the Lowell Point Lagoon will be out of compliance with the current permit if '14 CITY OF SEWARD, ALASKA RESOLUTION 2012 -056 the sludge removal project is not completed by the end of 2012. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to apply for a loan in the amount of $490,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the Lowell Point and SMIC Lagoons sludge removal and disposal. Section 2. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $490,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an agreement for the loan and a promissory note, with annual payments not to exceed $26,000. Section 4. This resolution shall take effect thirty (30) days following its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` Day of July, 2012. err THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Council Agenda Statement Meeting Date: July 23, 2012 1 ' Through: City Manager Jim Hunt 414-A-00. From: William Casey, Public Works Director Agenda Item: Authorizing the City Manager to apply for a loan in the amount of $490,000 and accept a Loan Offer from the State of Alaska Department of Environmental Conservation, Clean Water Fund, and Execute Necessary Loan Documentation BACKGROUND & JUSTIFICATION: The City of Seward Public Works department utilized M.L. Foster and Associates to evaluate the health and needs of the Lowell Point and SMIC Sewer Pond. Reports regarding the sewer system were submitted to conclude the assessment. The reports indicated a pressing need to removed the aged sludge from both lagoons because it is necessary for good housekeeping, reducing energy consumption, free up displaced volume and may improve performance during peak organic loadings from transient populations. Removing the sludge in the SMIC lagoon also helps ensure uninterrupted operation of the nearby prison. This project will also keep the Lowell Point lagoon in compliance with the current permit. Unfortunately the Wastewater Department does not have adequate cash reserves to fund the project without assistance. However, the most recent Financial Capacity Assessment found the fund to be healthy enough to cover existing and potential loan obligations. Nord In an effort to obtain funding, city staff applied for a loan from the State of Alaska Department of Environmental Conservation's Clean Water Fund. The submitted loan questionnaire was accepted giving the City an opportunity to submit an application for $490,000 loan with 1.5% interest. Accepting the total loan amount of $490,000 is in the best interest of the city by allowing the city to utilize the funds to invest in critical infrastructure, follow regulations set forth by the Alaska Department of Environmental Conservation and remain in compliance with the current permit INTENT: Authorize the City Manager to apply for a loan in the amount of $490,000 and accept a loan offer from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the Lowell Point and SMIC Lagoon sludge removal and disposal CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Page 27: Follow X 1 ' recommendations of the Water and Sewer System Analysis (2000) Strategic Plan (document source here): Page 18 Promote a Safe X 2 ' Community Other (list): Seward Wastewater Evaluation, Wastewater Facilities 3. Operations & Maintenance Plan (a permit requirement) and a SMIC X Lagoon Sludge Survey used to assess the health of the lagoon b FISCAL NOTE: $490,000 represents the total project cost and the loan amount requested from the State of Alaska rrr Department of Environmental Conservation Clean Water Fund. The terms of repayment are over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to, an agreement for the loan and a promissory note, with annual payment payments not to exceed $26,000. Approved by Finance Department: gt.,02,�rJ ATTORNEY REVIEW: Yes No X RECOMMENDATION: City Council approve Resolution 2012- Authorizing the City Manager to apply for a loan in the amount of $490,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the Lowell Point and SMIC Lagoon sludge removal and disposal and accept a loan offer from the Alaska Clean Water Fund. ` 1 l SEAN PARNELL, GOVERNOR DEPT. OF ENVIRONMENTAL CONSERVATION 555 Cordova Street, 4th floor Anchorage, AK 99501 -2617 Phone: (907) 269 -7502 DIVISION OF WATER Fax: (907) 269 -7509 MUNICIPAL GRANTS LOANS PROGRAM - .. --.� 'June 7, 2012 Dear Utility: r , yry - Enclosed are copies of the State final Fiscal Year 2013 Funding and Planning Priority Lists for the Alaska Clean Water and Drinking Water Fund Intended Use Plan's. The public review period was completed on May 2, 2012. All comments taken were reviewed and to the extent possible, included in the final IUP version. Effective the date of this letter, all projects listed on funding priority lists for each IUP may proceed with loan processing. For a full downloadable copy of each final program IUP, you can go to our web site at: lat e. Iwww.dec.state v a rusJwater muniloani intended. ase_Rialus.htm If you do not have access to our web site, you may request copies from contacts ,ri/ given below: Terri Lowell Mike Lewis Dept. of Environmental Conservation Dept. of Environmental Conservation Division of Water Division of Water 410 Willoughby Avenue 555 Cordova Street Juneau, AK 99801 Anchorage, AK 99501 Telephone: (907) 465-5146 Telephone: (907) 269 -7616 Email: <1' .iO•,i l y Jaska Cry` Email: nLltr 'E'Svisa iic+ k< €C FA If you have questions or concerns, please do not hesitate to contact me directly in Anchorage at (907) 269 -7616. Sincerely, /1 Michael P. Lewis, P.E. Program Manager MPL/er ENCLOSURE ( ALASKA DRINKING WATER FUND Point Source Funding Priority List Fiscal Year 2013 _ Subsidy' - _L Greet) Reserve 1 [Cornmunity F;equest(i r Available . Subsidy for i Subsidy i i — Narno /Systern Project Assistance Interest Term Disadvantage Disadvantage i for Green I Project !Green Credit Estimated i Sustainability Rank (Score Owner Project Title [ Amount Amount ' Rate (Years) Community ! Commuirity` l Project Type" ' Amount Start Date Policy' _ 1 146 College Utilities 'Sherwood Forest Water Main Extension Phase II 81,540,000 $1,540,000 1 ! 1.50% 20 Yes $500,000 � 5/1/2013 Fix it First 2 126 Sitka Hollywood Way Water Main Replacement $250.000 8250,0001 i.50% 20 Yes $87,500 $1,500 WTR -BC $25,000 5/30/2013 Fix it First 3 126 Sitka Baranof Street Water Main Replacement 8665,000 5685,000 1.50% 20 Yes 8239,750 $4,110 WTR -BC $68,500 7/16/2012 Fix it First 4 126 Haines Piedad Springs Water Source Upgrades $338,760 $338,760; 1.50% 20 Yes $118,566 $12,226 ENG -BC $203,760 8/1/2012 Fix it First 5 126 Haines AC Replacement Muncaster $787,500 $787,5001 1.50% 20 Yes $275,625 $47,250 WTR -BC $787,500 7/1/2012 Fix it First 6 126 Anchorage 41st Cope Northstar Water Upgrade 51,699,402 $1,699,4021 1.50% 20 No 8/1/2012 Fix it First 7 125 Bethel Institutional Corridor' $ 14,417,880 $ 4,811,8421 1.50% 20 Yes $500,000 $8,473 ENG -BC $3,200,000 6/1/2015 Fix it First Total Requested Amount:LS 19.718,5421 Subsidized Amounts $1,721,441r 373,559i Total Available Amount: b 10,112,504 i Total Subsidized Amount $1,795,000 Total Greensi $ 4,284,760 ' Full project funding and Green subsidy funding of the Bethel - Institutional Corridor project will be dependent upon remaining available loan funds, The Department will negotiate with Bethel to provide additional funds as they become available later in the year. 2 Determination of total available funding for projects may be referenced on page 5 of the IUP narrative section. 'Total available loan subsidy allowed under this IUP is $1,795,000. Criteria for being eligible for a loan subsidy may be referenced on page 9 under the narrative section of the IUP. 5 Projects which demonstrate adequate criteria for meeting a Green project component will be eligible to receive additional subsidy as shovm. 6 Green Project Reserve Category Type: GIF - Green Infrastructure, WTR - Water Efficiency. ENG - Energy Efficiency Si EIN - Environmentally Innovative. Green Project Justification Type; BC - Business Case / CAT - Categorical. 'Prior to funding any project shown to have a funding subsidy for Green, a Business Case for project Green eligibility must be found justified, 6 Sustainability Policy - "Fix it First"- fix existing critical infrastructure; "Improve TFM" - improve technical, financial and managerial capacity of the system; and, "Planning' - planning and development of alternative projects that reflect the full life cycle cost of infrastructure. CVO/ PS Priority List Appendix lVa FINAL ALASKA DRINKING WATER FUND Point Source Funding Planning List Fiscal Year 2013 Subsidy Green Reserve i i ' Requested j Subsidy for Subsidy for 1 Green 1 Community I { Project Interest Term s Disadvantage I Disadvantage Green Project Credit I Estimated Sustainability Rank Score Name /System Owner I Project Title Amount Rate (Years) Community Community Project Type y Amount LStart Date Policy 8 125 Homer (East Hill Water Main/ A -Frame lank improvement 53,315.338 1.50% 20 Yes N/A NIA ENG -BC NiA 6/1/2015 Fix it First 9 125 !Seward Lowell Canyon Water Storage Tank Refurbishment 5575,000 1.50% 20 Yes " 8/29/2012 Fix it First 10 121 /Anchorage ' Wcur:ier Park Water t rylade Ph II' $543,088 1 -50% 20 No " 6/3/2013 Fix it First 11 120 !Golden Heart Utilities ;Water Ma!n Reconfiguration 5800,000 1.50% 20 Yes " " " 4/15/2013 Fix it First 12 116 ID :Ilmgham l- ;arbor Water Line Extension 5531,300 1.50% 20 Yes " WTR -BC " 9/1/2012 Fix it First 13 116 ;Anchorage ;Last Bluff Water Rehab Ph 11 52,000,000 1.50% 20 No " 3/4/2013 Fix it First 14 116 .Anchorage ICala s Suhd'-ns on Water Rehab 53,200,000 1.50% 20 No " " " 3/4/2013 Fix it First 15 116 !Anchorage !Alyeska Bas Water Rehab $5,600,000 1.50% 20 No " 3/4/2013 Fix it First 16 105 !Golden Heart Utilities ;Valve Replacement Project P'!ase 2 of 3 5400,000 1.50% 20 Yes " " 4/16/2013 Fix it First 17 100 Golden Heart Utilities ;WHIP Water Main Extens: r 51,312,500 1.50% 20 Yes " " " 5/30/2013 Fix it First C)4(1 �( 18 95 North PcIe Jt :y Emerge n ;y Response < eneratcrs 51,067,000 1.50% 20 Yes " ENG -BC „ 5/1/2013 Improve TFM VV 19 81 <etrhikan Gateway Saab' fongass Water Phase VI $1,569,300 1.50% 20 Yes ENG -BC 9/4/2012 Improve TFM 20 76 ,Anchorage ;Ship Creek WTF Comprehensive Improvements 55,000,000 1.50% 20 No 6/4/2012 Improve TFM 21 66 !Craig Craig Water Storage Tank Upgrade 5100,000 1.50% 20 Yes Of WTR -BC " 10/15/2012 Improve TFM 22 46 'Nome (Water Maintenance /Construction Equipment $640,000 1.50% 20 Yes 3/31/2012 Improve TFM 23 45 I Horner !Homer Source Water Development $13,650,000 1.50% 20 Yes 7/8/2013 Improve TFM 24 45 Kotzebue Equipment Procurement - Snow Blower 5250,000 1.50% 20 Yes " " 7/2/2012 Improve TFM 25 36 !Craig !Update Craig Water Master Plan $100,000 1.50% 20 Yes WTR -BC " 5/15/2012 Planning 26 36 :Swiss Castle Water Works ISwiss Castle Estates Water Improvements 5150,000 1.50% 20 Yes " " WTR -BC " 4/15/2012 Improve TFM Total Requested Amount: f $ 40,803,5261 Total Priority & Planning Lists Requested Amount D:60,522,0681 • Green Project Reserve Category Type: GIF - Green Infrastructure, WTR - Water Efficiency, ENG - Energy Efficiency & EIN - Environmentally Innovative. Green Project Justification Type: BC - Business Case / CAT - Categorical. .- Sustainabildy Policy - "Fix it First" - fix existing critical infrastructure; "Improve TFM" - improve technical, financial and managerial capacity of the system; and. "Planning"- planning and development of alternative projects that reflect the full life cycle cost of infrastructure. CW PS Planning list Appendix IVb FINAL , ( iks,, ( ( ! . ( ALASKA CLEAN WATER FUND Point Source Funding Priority List Fiscal Year 2013 Subsidy' Green Reserve i COMM :ommunfty 1 Reg0ested Avallabla 1 ( ; Subsidy fr r ; Subsidy for Green Estimated _ j _..__ __ ' Name /System I i Project Assistance Int rest] Term Disadvantage Disadvantage„ Green Project Credit Binding I Su tlity Rank Score; Owner Project Tide j Amount Amount' Rate (Years) Community : Community' ' Project ! Type' Amount' jCornmitment Policy' 1 j 615 ! Bristol Boy 3c 7 `,t .gage Le 3 t 7 c 2.6 $2,670, h 70 u 0 000 5� 0 20 (e s — .E -- - -r — in '� c = ( j 67v 000, I I 7/15/2012 Fix it First • 515 i Sdliii.okarii ,Vvaste.water 1 e m ' Plant .;rxi f . $2.000.000 $2.000,0001 1.thin; 20 "..c /5.,00. 315,030 I ENG-St: 62.000 u 0 715/201,2 Flx it First 3 615 !Dillingham !Wastewater ater CO :..tan Sy S99996 Up f odes 1 $2.000,000 52,000,000 1,00 S 20 Yes I I _ NC C _, C 5000.000 811/2012 Fix 4 First f 4 605 lithalaska :Wastewater Treatment Plant ; . gide S8,500.600 68,566,600; 20 ' Y ca 575 000- X5.'0. i Improve TFM 5 550 , c ro igerd.000d Wastewater Tr aen,i f F tr Ph if ( $3,gGJ 000 $3,000 000 Sac ", 20 No i 1 3;26r.012 Fix tFirst 6 535 ! Anchorage 'Aspleind Disinfection st,d7 ^ : prjrad' S2- 000.000 $2,000,000 50"S 20 No • 9>26/221 Fix it First 7 530 jA 7c orage Vest 71st Avenue nue See i ' Oao ' 5800 000. 6800,000 1.50S. 20 No 6;312013 Fix d First 530 'Valdez Valdez WA P ()offal' L. 8 I S!.230.675 $1,230,675 0':, 20 No • 8/1/2012 y d First 9 525 € Juneau ICBJ Lawson Ck. Lift St3 e con : t Co Got. Phase $675,000 5675,0001 1 .50' 20 Ne 81112012_ Fix it First 10 500 ;oaks !Hollywood allay & New Archangel St Sewer 5500.000 $500,000 1 5th 'r, 20 ; Yes i 545.000: 57,500 i ENG -BC 550 000 1 2.20x2012 Fix it First E., - 11 ` (King Cove icawntown Wastewater System Upgrade, rade, $100.000 5100,000 1 50 20 Yes i 65,0001 l 7115/2012 Fix it First 12 495 130 >18 Pole Utility Emergency Response Cienerwors 5302.500 5302,500 1.50. 20 Yes I $27.325l 54.538 ENG -BC 5302 500 11/112012 I Improve TFM 13 430 !Seward !Lowell Point and SMIC ! agoons Sludge Ri:moval I 5490.000 5490,000 1.50'; • 20 Yes ! $44,100I 57,350 ENS -RC $^,00,000 8/1/2-012 Improve T / 14 455 I.f e :ersh.xg IPumpstation 1 Force Main 5270 000 5270,000] 1.00' t, 20 Yes 613.699. 1.'16/2012 Improve TFM 15 410 ` ;Anchorage Landfill Leachate Control Vault Upgrades` j 61,700 000 51,599,1081 1.50% 20 No 10/31/2012 Improve TFM Total Requested Amount: $ 26,304,775] Subsidized Amounts: 5364.0241 $34,3881 Total Available Amount: $ ?6,203 883 Total Subsidized Amount: 5398;412' Total Green: r $ 4.842,500 ' Subsidy funding for the Dillingham - Wastewater Collection System Upgrades project was not provided due to the Dillingham - Wastewater Treatment Plant Upgrades receiving maximum allowed subsidy for both Disadvantage Community and Green project. Also, only partial subsidy funding was available for the Petersburg - Pumpstaion 1 Force Main project and the Department may increase subsidy funding if funds become available. `Full funding of the Anchorage - Landfill Leachate Control Vault Upgrades project for $1,700,000 will be dependent upon remaining available loan funds. The Department will negotiate with Anchorage to provide additional funds as they become available later in the year. 3 Total available loan and subsidy funding amounts of 832,754,854 and $469,287, respectively are split on a ratio of 80/20 between Point Source Priority List (526,203,883 & $375,430 of subsidy) and Non -Point Source Priority List ($6,550,971 & 593,857 of subsidy) projects. Note - an added amount of subsidy for Point Source Priority Listed projects resulted from an insufficient amount of listed disadvantaged Non -Point Source Priority Listed projects. Criteria for being eligible for a loan subsidy may be referenced on page 9 under the narrative section of the IUP. 'Funding for Green projects is based on meeting a minimal required amount of 5844.400 under the State's capitalization grant for the program. s Green Project Reserve Category Type: GIF - Green Infrastructure, \VTR - Water Efficiency, ENG - Energy Efficiency & EIN - Environmentally Innovative. Green Project Justification Type: BC - Business Case? CAT Categorical. ' Prior to funding any project shown to have a funding subsidy for Green. a Business Case for project Green eligibility must be found justified . ' Sustainability Policy - "Fix it First" - fix existing critical infrastructure, "Improve TFM" - improve technical, financial and managerial rapacity of the system; and, 'Planning" - planning and development of alternative projects that reflect the full life cycle cost of infrastructure. CW PS Priority List Appendix la FINAL ALASKA CLEAN WATER FUND Point Source Funding Planning List Fiscal Year 2013 subsid , Reserve Community � Subsidy f or , Subsidy for : 1 Green Estimated Name /System Assistance Interest Term Disadvantage Disadvantage I Green Project Credtt Binding Sustainability I Rank Score Owner Project Title Amount Rate (Years) Comrunity Community I Project Type Amount Commitment Policy` 16 400 iSoldotna iHarbor ler /ace Lane Sewer Manline Irs.no4..,00 $193 -500! 1.50 / 20 Yes N/A I NIA 715/2012 7/15/20121 Fix it First 17 400 !Wrangell ;Sewer i' -' ;n;,; Stations Replacement $190.928 4 8—''' 26 7 7 :15/2012 Fix i t Frst $ 390 ;Kodiak 010 80119 HIncllii,g anu D! po .at 54 1.50Y ',!0 No j " N/A 8'1 Improve !I FM 19 360 Craig Rep ace Water S:-er Pcn.p 5 a rn S404.000! 1 115 20 Yes " " LNG-13C..: 8/1/2012 Fix .i First 20 ( 350 r /lat bborougn I l aineelne Water & Sewer Standby 1 a a -ors $315,000 1. %, 20 Y " 7118/2012 Improve TFM 21 19 ?Name Saner Ma rti .ar ,.1s uctio Equ 5855 .0001 1 10ib LU { v " " " 9/13/20 I Improve f FM 22 170 ;Juneau 003 Mecdenhall WW Plant Factlnv P811 tlpuate $190 -502 1.50':! 20 1 Nr! " " 81112.012 Improve TFM 170 : 1Uneat; '00,1 JlElfiail Peeg12 5Jb1 Pio nt r 1 ; t.' a- Llo,!,1t. 3100 000 1 50 I 20 No " 0 " 01:2012 j Impnwo TFM 24 170 jl lomc i3i., Solids Treatment In prose mer.. 85326.864 1.50° 20 Yas 1 " " " 0/18;2012 Improve TFM 25 160 Fa i b ;tal1s ' J11. tewe le r TroMment 01 1 Clanfm 1 ` "nj r, 650,623! 1 5 0 0 N, Improve TFM 26 155 Ii0rErn, 11 rai Wa t1 water Mat 1 a UI d ( 3235 0001 1.500, 20 Y/.!! - ( " " ENG RC " 9 1 2012 Planning i 80 .A C-lnrai!e An069109e t a1,d`ill Leachale ) so F _. 11.101 53 4u 50!„,, �, o " 20 lmprov TF �1 C4 Total Requested Amount - Priority and Planning: [S Green Project Reserve Category Type: GIF - Green Infrastructure, WTR - Water Efficiency, ENG - Energy Efficiency & EIN - Environmentally Innovative. Green Project Justification Type: BC - Business Case/CAT - Categorical. - Sustainability Policy - "Fix it First" - fix existing critical infrastructure: "Improve TFM" - improve technical, financial and managerial capacity of the system; and, "Planning" - planning and development of alternative projects that reflect the full life cycle cost of infrastructure. CW PS Planning List Appendix la FINAL thiii. -. (IL„ (ilL ( ALASKA CLEAN WATER FUND Non -Point Source Funding Priority List Fiscal Year 2013 Subsid + Green Reserve' T Communit Re Available ( Subsidy for + subsidy I Estimated NamoiSystem I Project Assistance Interest f Disadvantage, Disadvantage ; for Green Project Green Credit I Binding Rank Scare Owner Project Title i Amount Amount ' Rate I Term (Years) Community i Community' Project Type' Amount Commitment 1 1 n 155 Corrlovr Se r ater Contaminants P re �t c� i .,675,000( $675,0001 `: .50 ; 27 , Yes 560.7501 510,125 ENG -BC S675 CCOI 013 2 H 25 !!Kodiak Island B ( n , K n d i v I I . f f l f arer-.i ExODIsion Pi 3 > 01' yo ;37500 75,818 5 i81 ' S ^, °, � 20 1 No Total Requested Amount L$ 7,112,500 1 Subsidized Amounts $60,7501 $10,125 Total Available Amount: TS 6,483,548 1 Total Subsidized Amount': $70,8751 Total Green: $675,00& Total Point & Non -Pint Source Green:[ $5,517,500# ALASKA CLEAN WATER FUND ,^ Non -Point Source Funding Planning List W Fiscal Year 2013 VJ _ _ r Subsidy Green Reserve' Community Requested Subsidy for Green Estimated Name /System Project Interest Term Disadvantage Disadvantage Subsidy for Project Credit Binding Rank Score Owner Project Title Amount Rate (Years) ; Community Community' ; Green Project Type' Amount Commitment 3 110 Cordova Solid Waste Reduction & Water Quality Protection I $785.000 1.50% 20 Yes N/A NIA EIN -BC N/A 9/1/2012 4 85 Horner Storm Water Master Plan I 9340.000 1.505 20 Yes 7/15/2012 .. 5 50 City of D H: y u �arn �!1Aunc:,�al Landfill Energy Recovery System D 55ud 090 1.50% ?tr 'res EIN -BC 7120;:1012 ( s 50 City of KInn Cove King Cove Landfill Expansion & Upgrade Phase t X275.000 1.50% 20 Yes " ., 7;15/2012 Total Requested Amount - Priority and Planning:[5 9012,500 J i Full funding of the Kodiak Island Borough (KIB) - Kodiak Landfill Lateral Expansion Phase III project for 86,437,500 will be dependent upon remaining available loan funds. The Department will negotiate with KIB to provide additional funds as they become available later in the year. 2 Criteria for being eligible for a loan subsidy may be referenced on page 9 under the narrative section of the IUP. Note - all subsidy is placed in Point Source Priority Listed projects since no Non -Point Source Priority Listed protects were eligible for a subsidy. Funding for Green projects is based on meeting a minimal required amount of 8844,400 under the State's capitalization grant for the program, ° Green Project Reserve Category Type: GIP - Green Infrastructure, WTR - Water Efficiency, ENG - Energy Efficiency & EIN - Environmentally Innovative. Green Project Justification Type: BC - Business Case / CAT - Categorical. CW NPS Priority Planning Lists Appendix lb FINAL Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A GRANT AGREEMENT WITH THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION MUNICIPAL MATCHING GRANT PROGRAM WITH A TOTAL AWARD OF $2,508,000 FOR PHASE II OF THE NORTH SEWARD WATER STORAGE TANK AND PUMPING FACILITY PROJECT, AND APPROPRIATING FUNDS WHEREAS, for over 10 years, City staff has been pursuing funding necessary to construct a 520,000 gallon water storage tank and pumping facility in an effort to increase necessary chlorine contact time and buffer demand for water during periods of peak tourism; and WHEREAS, City staff submitted numerous applications with the Department of Environmental Conservation Municipal Matching Grant; and WHEREAS, in 2010, City staff was successful in acquiring grant monies through the American Reinvestment and Recovery Act sufficient to complete Phase One of The North Seward Water Storage Tank Project: Waterline Intertie; and WHEREAS, staff continued to pursue the remaining $4,500,000 in funding necessary to compete Phase II of the North Seward Water Storage Tank and Pumping Facility; and WHEREAS, an additional $1,991,999 in state appropriated funds has been identified and approved as the required match for this grant; WHEREAS, in August of 2011, the City of Seward through the State of Alaska Department of Environmental Conservation submitted questionnaires seeking funding for the completion of the North Seward Water Storage Tank and Pumping Facility Phase II; and WHEREAS, in September of 2011 the Seward City Council designated the North Seward Water Storage Tank and Pumping Facility Phase II as the City's number one local state funding priority for fiscal year 2013; and WIIEREAS, the City successfully procured an additional $2,510,000 in funding through the Alaska Department of Environmental Conservation Municipal Matching Grant Program; and WHEREAS, the grant funds may be used to provide contractual services, engineering, design planning, permitting, project support and construction management; and WHEREAS, accepting the total award amount of $2,508,000 from the Department of Y 1 CITY OF SEWARD, ALASKA RESOLUTION 2012 -057 Environmental Conservation Municipal Matching Grant Program is in the best interest of the City by allowing the City to utilize the funds to invest in critical infrastructure, follow regulations set forth by the Alaska Department of Environmental Conservation and buffer demand related to tourism and the high transient population observed in Seward. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a grant agreement with the Alaska Department of Environment Conservation Municipal Matching Grant Program, and accept the total award amount of $2,508,000. Section 2. The City Manager is hereby authorized to appropriate funding in the amount of $2,508,000 from account no. 709 - 70924680 -0200 to Infrastructure Costs account no. 709 -7092- 5926. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of July 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Council Agenda Statement Meeting Date: July 23, 2012 t of sFty * �.4 A To: Jim Hunt, City Manager v bi From: W.C. Casey, Public Works Director 414-6 P • Agenda Item: Authorizing the City Manager to enter into grant agreement with Alaska Department of Environmental Conservation Municipal Matching Grant Program, for a total award of $2,508,000 for Phase II of the North Seward Water Storage Tank and Pumping Facility Project, and appropriating funds BACKGROUND In 2000, the Design Study Report completed by CRW, identified a 520,000 gallon water storage tank as a necessary improvement to City infrastructure. The proposed site for the new water storage tank was the Forest Acres area, at an elevation that matched the Lowell Canyon tanks. Since that time (2000), CRW Engineering has worked with the City to pursue funding for this project. The project is currently at 35% design. Staff has made attempts to secure the remaining necessary funding through the Alaska Department of Environmental Conservation Municipal Matching Grant Program (MMPG). Its most recent submission of a questionnaire made us eligible for $2,508,000 through the MMGP program. In addition to the funding acquired through the MMGP program, Seward also received '4 a state appropriation of $1,991,999.99 to aid in the success of this project. The state appropriation is enough to cover the required 30% match for this grant and allow for a contingency fund that may be used for various purposes. The North Seward Water Storage Tank & Pumping Facility remains at 35% level design, while (Phase I) the Water Main Intertie was successfully completed in 2010 utilizing grant money from the American Reinvestment and Recovery Act. City Staff are aggressively and collaboratively working with an engineering firm to successfully finalize land acquisition. INTENT: Authorize the City Manager to enter into a grant agreement with the Alaska Department of Environment Conservation Municipal Matching Grant Program, with a total award amount of $2,508,000 and appropriating funds. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Page 27: Continue to 1. upgrade and expand utilities to meet existing needs and encourage future X development 2 Strategic Plan (document source here): Page 18: Promote a Safe X Community 3 Other (list): Wince - Corthell- Bryson Inspection Report X FISCAL NOTE: The City received funding in the amount of $1,991,999.99 from Designated Legislative Grant # 10 -DC -024, Dredging Cruise Ship Berthing Basin Approaches, for building a new water storage tank and distribution system. Contingent upon passage of this resolution the City will be eligible to receive $2,508.000 in grant money from the State of Alaska Department of Environmental Conservation Municipal Matching Grant Program. The $2,508,000 in grant monies received from the State of Alaska Department of Environmental Conservation Municipal Matching Grant Program requires a 30% match or $752,400.00. The monies received from the prior $1.99 million grant will cover the match. Approved by Finance Department: S' ATTORNEY REVIEW: Yes No X RECOMMENDATION: �1 City Council approve Resolution 2012- s� Authorize the City Manager to enter into a grant agreement with the Alaska Department of Environment Conservation Municipal Matching Grant Program, with a total award amount of $2,508,000 and appropriating funds. r ?= : . ".::. *. t£,. -. _ ?r ...a- - ,....,.._,. ....� .. ...,....._.__._....».. ,....»....._.a,..__.......w... ._.._....e..............,,.......,.. n:.>..,,......,, .......�..«...e.....:,..,.�.�,. �'.^"` ins. T � De of Environmental ATE r: CST ° Conservation �QServatB�n DIVISION OF WATER GOVERNOR SEAN I Post Office Box 111800 ;� o� ° % Juneau, Alaska 94811 -1800 �..� 907 65.5300 Pax: "7.465.5177 July 5, 2012 Mr. jarnes Hunt, Cif- Manger City of Seward P.O. Box 167 Se :. ard, AK 99664 RE: F'1. Frinding Notice (SB 160) Dear Mr. Hunt: The Depa-tment of Environmental Conservation, Division of Water's Municipal Matching Grant Program is pleased to inform you that Capital Bill SB 160 was approved and your community is eligible to receive $2,508,000 in Municipal Matching Grant funding for the North SeeJard Water Storage Tank & Pumping Facility Project. Your next step will be to complete an online Grant application which can be accessed at the Division of Water, Municipal Grants and Loans Program (MG&.L) Website located here: Naid }-r Alaska cr.vLa ter /MuniGrantsLoanslindex.h - m. you will find useful information and forms on this page. Please note below the additional language that has been added to our grant offers in order to ensure that communities that are offered grant funding from the departmen t use the funding in an expeditious manner; Progress Reports: The Grantee agrees to submit progress reports on the proposed project. Reports axe requested to be submitted quarterly through the programs online reporting system at the follcwing website location: I :ttr vew.dec.alaska,gc,v /wateriozs s/irdex.ht _ Project St .rt Date: The department will in its discretion, withdrew an accented Y-ant if construction has not been started within one year after the date of the offer was extended in accordance with 18AAC 73.030 (f). Project End Dare! Funds made available to a grantee under a fully executed signed grant agreement by the dep-:rttrient shall be e' ended , •ithin two (2) years from the effective offer date. The Department may cancel the project and seek to have the funds re- appropriated for other projects. An extension may be granted by the department upon written request and good cause shown by the grantee. Remaining Funds after Project Cnmpiedon: If the entire grant amount is not utilized for the original scope of work, the Department may seek to have the remaining funds re- appropriated for other projects on priori>y list. Mr. Jalnes Hunt 2 July 5, 2012 Once you are eligible to start submirtng pay request reimbursements to the departs -lent, you may scan the request and backup documentation to the email below with a copy to your assigned project engineer, Beth Verrc:lli. Please remember to mail the original signed cover sheet to -!.c address below. DEC.Water.MGL.MAT(oi),alaska.g,o= Alaska Department of Environmental Conservation Division of Water, Municipal Matching Grants ar Loans Program Attn: MAT (Municipal Administrative Team) P.O. Box 111800 410 Willoughby Avenue, Suite 303 Juneau, AK 9981 1 -1 800 If you have any questions regarding this process you may contact rine directly or any of the pr-is below: Mike Lewis, Program Manager 907 -269 -7619 mike.Iewis @alaska.gov Zorri. Fell, Grants Accountant 907 -465 -5172 zorrie.fell@alaska..1rsv Beth Verrolli, Project Engineer 907 - 269 -7603 beth.verrelli@alaska.gov The cenarrr:cnt looks fo :hard to serving the City of Seward and wishes you the best of luck with your project. Sincerely, J dirt Cut n . ns, CPA Ivlcipal Grants and Loans Proram Accountant 907 -465 -5155 aitli.curnn ins aalaska.go>y cc: The Honorable Gary Stevens, Alaska State Senate The Honorable Paul Seaton, Alaska State House of Representatives G: \Water \FACILITIES \Fc^•Muni -inat Grants and Loans \Municipal Grants and Loans Program \Municipal Matching Grants \2013 Capital Enacted \Letters to Communit +es \MMG #76914 Seward - FY13 Grant Notice.doc.docx ?Cl Sponsored by: Hunt Nftrol CITY OF SEWARD, ALASKA RESOLUTION 2012 -058 A RESOLUTION OF THE CITY COUNCIL OF TIIE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE ALASKA DRINKING WATER FUND WITH ANNUAL PAYMENTS NOT TO EXCEED $24,000, AND SUBJECT TO ANNUAL APPROPRIATION WHEREAS, in 2010 city staff identified several issues necessitating the addition of 850 linear feet of gravity sewer main on Maple Street; and WHEREAS, in 2011 staff completed and submitted the required questionnaire to compete for loan monies being offered by the Alaska Clean Water Fund; and WHEREAS, this project was placed on Alaska's point based funding priority planning list for fiscal year 2012; and WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the Maple Street Sewer Main Extension by obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Clean Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward hereby confirms its commitment to the State of Alaska (ADEC), and its intent to fund a $400,000 maple street sewer extension project, subject to receiving a loan from the ADEC. Section 2. The City Manager is authorized to apply for a loan in the amount of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the sewer system improvement known as Maple Street Sewer Main Extension. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $400,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an agreement for the loan and a promissory note. Annual loan payments shall not exceed $24,000. Section 4. This resolution shall take effect thirty (30) days following adoption. CITY OF SEWARD, ALASKA .•. RESOLUTION 2012 -058 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23 Day of July, 2012. TIIE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 1� ..rr Council Agenda Statement Meeting Date: July 23, 2012 : Through: City Manager, Jim Hunt 4 tas p • From: Public Works Director, W.C. Casey Agenda Item: Intent to fund $400,000 for the Maple Street Sewer Main Project, subject to receiving an Alaska Department of Environmental Conservation Loan for that amount, authorizing a loan application with the Alaska Clean Water Fund and authorizing the City Manager to enter into a loan agreement with the ADEC. BACKGROUND & JUSTIFICATION: In the past twelve years there have been two water system evaluations and two wastewater system evaluations by two separate engineering firms. The purpose of the water and wastewater system evaluations performed in 2000 (CRW Engineering) was to investigate sizing and routing requirements for water and sewer infrastructure in the Gateway and Forest Acres subdivisions, as well as evaluating other water /wastewater components. These two subdivisions are the largest undeveloped areas left on the west side of Resurrection Bay and could provide substantial growth for the City if water and wastewater services could be provided. To move forward with the Water /Wastewater system maintenance and development of the Capital Improvement Program that was delineated and recommended by the 2000 study, the City contracted with another engineering firm in 2009 (M.L. Foster & Assoc.). M.L. Foster was tasked with identifying areas that needed corrective actions and presenting their recommendations in a report (Water Compliance Study). M.L. Foster's study included an "Implementation Plan" that documents background information and results from field investigations, evaluates specific elements of the wastewater system, permit renewal processes, identifies trouble spots, recommends improvements and provides a summary of priority projects. City staff utilized both of these studies to create a master project list and identify potential funding sources. The Maple Street Sewer Main extension was placed on the master project list because of several issues outlined in both reports and staff observations. If the City is successful in procuring funding it will construct 850 linear feet of sewer main, which will serve lots that are currently subdivided, as well as a large un- subdivided parcel. Present day status would require on -site wastewater treatment systems. The sewer main extension will also provide much needed redundancy for the Long Term Care Facility and the Afognak Subdivision development. INTENT: Secure available funding for the Maple Street Sewer Main Extension through the Alaska Department of Environmental Conservation, Clean Water Fund Loan Program. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): Volume 1 PG 19, 22 and 27 X 2. Strategic Plan (document source here): Page 10 X 3. Other (list): 2011 M.L. Foster Wastewater System Evaluation X FISCAL NOTE: This loan requires the City commit to repayment of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund. The terms of repayment are over 20 years at a rate of interest equal to annual appropriations, resulting in annual payments of approximately $23,400. Approved by Finance Department: ,i e ATTORNEY REVIEW: Yes X No RECOMMENDATION: The City of Seward City Council approve funding in the amount of $400,000 for the Maple Street Sewer Main Line Extension Project, subject to receiving an ADEC Loan for that amount, authorizing a loan application with the Alaska Clean Water Fund and authorizing the City Manager to enter into a loan agreement with the ADEC. I STATE OF ALASKA ALASKA CLEAN WATER FUND 16 „, `. APPLICATION FORM GENERAL INFORMATION Name of Community City of Seward Address P.O. Box 167 Seward. Alaska 99664 Contact Name W.C. Casey Title Public Works Director Telephone (907) 224.4005 PROJECT INFORMATION Project Name Maple Street Sewer Main Extension Location Forest Acres, Seward, Alaska Project Type: New Construction: X Upgrades Wastewater Treatment X Collection System i Discharge System X Stormwater System Stormwater Quality Enhancement IX I Solid Waste Description of Project: This project will construct a new sewer main in order to serve Tots that are developed in the near future. The project consists of approximately 850 linear feet of gravity sewer main. installation of 2 manholes and 1 cleanout. sewer service stub -outs to property lines and connection to the existing sewer system. ASSISTANCE AMOUNT This application is for $400,000.00 in loan monies from the Alaska Clean Water Fund. What loan payback period would you prefer? }Less Than 1 -Year 1 'Less Than 5 -years I X Up to 20 -Years Note: The loan payback period may not exceed 20 years. IS Rev. 4/09 Page 1 of 4 ACWF Application CYA PROJECT COSTS Administration $ 20,000 Legal $ Preliminary Studies /Reports $ Engineering Design $ 30,000 Inspection /Surveying /Construction $ 50,000 Management Construction $ 240,000 Equipment $ Contingencies $ 60,000 Other $ Total Project Costs $ 400,000 ESTIMATED PROJECT SCHEDULE Estimated Date Loan Agreement Signed March 2012 Preliminary Engineering Report March 2012 Design Engineering May 2012 Preparation of Bid Documents May 2012 Award of Construction Contract June 2012 Construction Initiation June 2012 Construction Completion August 2012 Initiation of Operation September 2012 OTHER FUNDING What funds, if any, other than Alaska. Clean Water Fund monies are committed for this project? Federal Funds from: Amount: $ Other State Funds from: TM Amount: $ Other Local Funds From: Amount: $ Other (Identify Source): Amount: $ Other (identify Source): Amount: $ Rev. 4/09 Page 2 of 4 ACWF Application A separate account will be established within the municipality's accounting system through which financial assistance received from the Alaska Clean Water Fund will be administered. I certify the above information is current and correct. William Casey Public Works Director Name Title / _ 1 c5 r is " / � /, Agto a Date CHECKLIST DOCUMENTS TO BE SUMBITTED AS PART OF THIS APPLICATION: (� ACWF Financial Information Form Pre -award Compliance Review Report (EPA Form 4700 -4) Facility Plan Environmental Review Documentation Force Account Approval Forms and Equipment Rates, if applicable n Certification from � he debt for an Alaska Clean Water Fund loan Attorney Municipality (l h sufficient legal authority to inc AND EITHHER: (1 A resolution from your city council authorizing this loan application and designating an official authorized to accept and manage an Alaska Clean Water Fund Loan; or A resolution from your city council authorizing this loan application and specifying that an additional resolution will be issued to authorize the acceptance of a loan offer from the Alaska Clean Water Fund. Rev. 4/09 Page 3 of 4 ACWF Application Submit Completed Application to: Alaska Department of Environmental Conservation Municipal Grants & Loans 555 Cordova Street Anchorage, Alaska 99501 -2617 Rev. 4/09 Page 4 of 4 ACWF Application CITY OF SEWARD Main Office (907) 224-4050 ['>0. l30\ 1(77 • Public Works (907) 224 -405 �a d : tldl ?, At A :A 9966 • Water & Sewer (907) 224 -4094 • Fax (907) 224 -5051 January 26, 2012 Ms. Beth Verrelli Alaska Department of Environmental Conservation Division of Water 555 Cordova Street, Fourth Floor Anchorage, AK 99501 SUBJECT: Maple Street Sewer Main Line Extension Pending ACWL Categorical Exclusion from Environmental Review Process Dear Ms. Verrelli: The City of Seward Water and Wastewater Department requests a categorical exclusion to the environmental review process required by the Alaska Clean Water Loan program for the subject project. The project will construct a new sewer main in order to serve lots that are to be developed in the near future. The project consists of approximately 850 linear feet of gravity sewer main, the installation of 2 manholes, 1 cleanout, sewer service stub -outs to property lines and connection to the existing sewer system. The City of Seward Water Wastewater Department work is expected to be constructed within existing roadways /rights -of -ways. This project will not adversely affect the degree of treatment or capacity of any existing wastewater facility. This project will allow for future developers to utilize the City of Seward's sewer system, thereby eliminating the need for septic systems and reducing the potential for environmental harm due to private septic system malfunction. The increase in the volume of discharge or loading of pollutants caused by this new sewer main will be negligible. This project will not cause the permitted volume of discharge or loading pollutants from an existing facility as designed to be exceeded. It will not create a new or relocate an existing discharge to surface or ground waters. This project will have no identifiable effects on any cultural resource areas, any endangered or threatened species or their habitat, or any environmentally important natural areas. It is not expected to have any significant adverse effect on the quality of the environment individually, cumulatively over time, or in conjunction with any other action. r The City of Seward Water and Wastewater department is financially capable of constructing, operating and maintaining the additional 850 feet of sewer main. Also as requested, I have enclosed the Engineer's Cost Estimate as per the latest estimated project costs. If you require further information, please call W.C. Casey, Public Works Director or Carmen Hewitt, Public Works Technician, at 907.224.4005. Sincerely, William C. Casey Public Works Director 907.224.4093 wcasey @cityofseward.net � I 'rod' I ........._ , ; , ' -'), •'' / 1 7- - 1 - ■ . / /-, ''' / ;" ...: \ , ' ,,' ,'' ; ) / -.4, - ' `....-;', "r `.., r,‘ 'yr ••••• -, \ K S\ e. c: '. v / -------, ..:..-'1 . ' ' "-\\ ....." ....,------ „. .-'.-------":-----------------"-"------._..„_._.._.._ _ 1: I // I I ._ , . II I I I I I I /7 r-I I I I \ i I I I --, 4 --,-- l 1 // - .,...2. I 1 I ; , : I I I 'I 1 t 1 ( t i I 1 (: 1 ' 1 t 1 •4_,...,.61,..__4_ , Y . \ ' .-----1— 1 ,4_. 1 _ MAIN LINE 1 1 1 ---, \' EX ON ' ! ; _..,---_,..„..,..„__i___,„ I , I • 'I• • ; '. , t 1 ., ‘,...; I •-'''' I I, ( ' ' \ • . I i .•• 4 ' .' \ I , I .......,_..c. Io \ ,..( ' , '.., . I \ I 1 1 I A I I \ ' .• , 'I N....../ / .--••••••.. \77: :.. -- , ..---.. r 1 i 1 il, CO Vtr'.'°.:1:Cit :• ' ; '''-' '''- '''' -.'". - =77:: ,---. , -. , z •4 '.! ....: , ..1 ) 1 i " N - -i- , . .........-,' " 1 6 '‘, j- =-Vr-r.,-T,,-...., / , - . r — 1 I .— i !.. ) . ;, s ' . . 7) ' .--7 ! \) \ t \ r" ' " `4 '''' 4 \ \ :-.1 ,!. \ ");-- : ' \ ...e r - — 1 .) 1 I / \ - \,,,,, ,,,. s .i- - : \ ,..-• ....:. ...',!% ! prr r--- , .e• ‘ , L \ ..''',, \ \ / \ ' 1 , C - i': r J----,--- / \\.,,-, , /- ._1 • A .i______•....., / \ - :.- , 1 , ,.,_\--- ....-• \./ ,f -, -:•-•F .:,-. ,-,. ", ] A•J' 4 \ •I!!' ,.. :.,_,' , .....P!.f..-1.'7.?: ,-- ,.. - ---,..„ ,,,,, - , ...._ , ' — -1 . .! \ 1-- ----- \ ---- ,_„ / ....... 1 , p1A i ../ , , slf ----1 -1 . : 7 .1 1 ,A- / ZA ;_',C. Firl..il:NI.R V 6 '" : -17 CM'' ' .,'‘:!, . !.: :P.' 0.1 1 .'. ■•:',:..;!, !!....„ ;:•4Nz.: i ,.... •-■-„,,,,, -..`--, i `,...„/ CJ OF SEWARD ;c:,... ::,.. '-,,,,:s.F.::::-..•.:..„: June moo rs NO .. SEWER SYSTEM 9979 ",z FIGURE 4- .•;:, :i9.,;...,;- ,,, ;,.., I., 4., /., -- — ...---....-.....- — . —. ..... .' .....- , . . . . - I 00 ' 850 l �� v:, 7u j RINCSEXTENSON } I w( w k "•r te rrr°trr rhea , 'r711.4, MA rv�TR T - ,1 4 T f I r i I - CEDAR STREpT • . � k. r ELM STRUT _ , e r— 1 1 i \ \ .,- s '\ i ' . c SEWARD ,pct /' \ / \, 5 ELEMENTARY SCHOOL � -- i ' ° 0 ^ A , iT lfG -, t fi , , 1 ' ' 1 - ' ' . . ' " '7 , , ' \ ' ' - ' ‘ ' ' - . _Ft v, i - � y ,� � w ti ..._ — .-..,` 1 5 OiMONJ BLVD :.___I , ( 1 y + Ir .6 1 ' „ . ' ' ' '' ' ,'; ,,', , . \ 1 '," " '—''':-'`'.^-1,. --- _ ----- c \' �,� HAG ...„ ,,, .., , \ Hry a , _ _ .. ,,, .„.....,....., . ., . ,,, CITY OF SEWARD, ALASKA Project N � 0 200 400 MAPLE STREET SEWER MAIN Drown Sy MJL Z. @1GINffRINGGROUP,LLC LINE EXTENSION Scoie: 1" = 400' L. Project; _ Date: JAN 2012 Figurer 1 1D\ Exhibit L -11 CITY OF SEWARD Wastewater Enterprise Fund Statement of Net Assets December 31, 2010 (With Comparative Amounts for 2009) Assets 2010 2009 Current assets: Cash and investments $ 396,006 395,033 Receivables: Accounts 74,030 81,009 Other 20,000 - Less allowance for doubtful accounts (3,331) (5,905) Net receivables 90,699 75,104 Total current assets 486,705 470,137 Restricted cash and investments - capital projects 112,115 187,820 Property, plant and equipment: Land and land rights 111,011 11I,011 Buildings 2,418,398 2,418,399 Improvements other than buildings 8,952,968 8,952,968 Equipment 705,897 292,907 Total property, plant and equipment in service 12,188,274 11,775,285 Less accumulated depreciation (6,903,924) (6,627,316) Net property, plant and equipment in service 5,284,350 5,147,969 Construction in progress - 354,108 Total property, plant and equipment 5,284,350 5,502,077 Total assets $ 5,883,170 6,160,034 Liabilities and Net Assets Liabilities; Current liabilities: Accounts payable 8,906 8,108 Accrued payroll and related liabilities 7,836 6,372 Accrued interest 3,932 565 Current portion: Accrued annual leave 3,841 3,135 Notes payable 116,353 58,415 Total current liabilities 140,868 76,595 Noncurrent liabilities, net of current portion: Accrued annual leave 15,624 9,405 Notes payable 122,492 181,763 Total noncurrent liabilities 138,116 - 191,168 Total liabilities 278,984 267,763 Net assets: Invested in capital assets, net of related debt 5,045,505 5,261,899 Unrestricted 558,681 630,372 Total net assets 5,604,186 5,892,271 Total liabilities and net assets $ 5,883,170 6,160,034 101 OD Exhibit L -12 CITY OF SEWARD Wastewater Enterprise Fund Statement of Revenues, Expenses and Change in Net Assets Year Ended December 31, 2010 (With Comparative Amounts for 2009) 2010 2009 Operating revenues: Residential $ 465,108 445,190 Small general service 136,741 107,520 Large general service 193,914 179,191 Seward Marine Industrial Center 50,211 40,898 Miscellaneous 5,442 23,655 Total operating revenues 851,416 796,454 Operating expenses: Salaries and benefits 270,366 236,385 Purchased services 295,790 179,994 Supplies and maintenance 81,689 62,679 Administration and general 138,716 142,232 Other 13,984 12,637 Depreciation 276,608 280,429 Total operating expenses 1,077,153 914,356 Loss from operations (225,737) (117,902) Nonoperating revenues (expenses): Intergovernmental 8,712 11,842 Investment income 6,021 3,678 Interest expense (3,468) (4,332) Net nonoperating revenues (expenses) 11,265 _ 11,188 Loss before transfers (214,472) (106,714) Transfers out (73,613) (68,667) Change in net assets (288,085) (175,381) Beginning net assets 5,892,271 6,067,652 Ending net assets $ 5,604,186 5,892,271 (Of the total depreciation expense of $276,609 above, $215,657 was attributable to capital assets that were funded with capital contributions.) 102 Exhibit L -13 CITY OF SEWARD Wastewater Enterprise Fund Statement of Cash Flows Year Ended December 31, 2010 (With Comparative Amounts for 2009) 2010 2009 Cash flows from operating activities: Receipts from customers and users $ 835,821 792,259 Payments to suppliers (390,665) (255,362) Payments to employees (253,265) (230,809) Payments for interfa_d ser-. ces used (138,716) (142,232) Net cash flows from operating activities 53,175 163,856 Cash flows from noncapital financing activities - transfers out (73,613) (68,667) Cash flows from capital and related financing activities: Principal payments on long -term debt (1,333) (57,584) Interest payments on long -term debt (101) (4,466) Acquisition of property, plant and equipment (58,881) (257,228) Received on note receivable _ - 239,600 Net cash flows from capital and related financing activities (60,315) (79,678) Cash flows from investing activities - investment income received 6,021 3,678 Net increase (decrease) in cash and investments (74,732) 19,189 Nod Beginning cash and investments 582,853 563,664 Ending cash and investments $ 508,121 582,853 Reconciliation of cash and investments to statement of net assets: Current assets $ 396,006 395,033 Restricted assets 112,115 187,820 $ 508,121 582,853 Reconciliation of loss from operations to net cash provided (used) by operating activities: Loss from operations (225,737) (117,902) Adjustments to reconcile loss from operations to net cash flows from operating activities: Depreciation 276,608 280,429 Noncash expense - PERS relief 8,712 11,842 Increase (decrease) in allowance for doubtful accounts (2,574) 2,564 (Increase) decrease in assets - accounts receivable (13,021) (6,759) Increase (decrease) in liabilities: Accounts payable 798 (52) Accrued payroll and related liabilities 1,464 1,141 Accrued annual leave 6,925 (7,407) Net cash flows from operating activities $ 53,175 163,856 103 I b4k Exhibit L -14 CITY OF SEWARD Wastewater Enterprise Fund Schedule of Composition of Net Assets December 31, 2010 (With Comparative Amounts for 2009) 2010 2009 Grants and other external contributions $ 10,155,599 10,155,599 Related accumulated amortization (6,584,269) (6,368,612) Contributions from other funds 161,550 161,550 City - generated equity 1,871,306 1,943,734 Total net assets $ 5,604,186 5,892,271 1rr 104 1t M ikunda , An Mtlep ALLIANCE be ,. MCGf1aDREY ALLfANCE ®M c Gl a d roy �:- Cottrell & Co., >n �. , „. Certified Public Accountants & Consultants Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and City Council City of Seward, Alaska We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Seward, Alaska as of and for the year ended December 31, 2010, which collectively comprise City of Seward's basic financial statements and have issued our report thereon dated June 14, 2011. Our report was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of Providence Seward Medical Center, as described in our report on City of Seward's financial statements. The financial statements of Providence Seward Medical Center were not audited in accordance with Government Auditing Nind Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. 165 3601 "C" Street, Suite 600 * Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.com Honorable Mayor and City Council City of Seward, Alaska Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the City of Seward's management, Honorable Mayor and City Council, others within the entity, federal and state awarding agencies and, if applicable, pass - through entities, and is not intended to be and should not be used by anyone other than these specified parties. 41111110" fazert,..ze Anchorage, Alaska June 14, 2011 err 166 Ul Nhi ernNYO Membr ct mda' MCG ALLIANCE • ® McGfadrey . Cottrell & Co., Inc. ,,,, Certified Public Accountants & Consultants 11 " , 1 , 7g •- - Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A -133 Honorable Mayor and City Council City of Seward, Alaska Compliance We have audited the compliance of City of Seward with the types of compliance requirements described in the OMB Circular A -133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2010. City of Sewrard's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of City of Seward's management. Our responsibility is to express an opinion on City of Seward's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A- 133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Seward's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Seward's compliance with those requirements. In our opinion, the City of Seward complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2010. 167 3601 "C" Street, Suite 600 * Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.corn 1 D Honorable Mayor and City Council City of Seward, Alaska Internal Control Over Compliance The management of City of Seward is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and perfoiuiing our audit, we considered City of Seward's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Seward's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of City of Seward's management, Honorable Mayor and City Council, federal awarding agencies, and pass - through entities, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska June 14, 2011 Sk..- 168 1� Mik unda, DREYLANCE �. MCGL ADREY ALLIANCE , M c Gl a d rey i ' Cottrell 8z Co., Inc. Certified Public Accountants & Consultants Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits Honorable Mayor and City Council City of Seward, Alaska Compliance We have audited the compliance of City of Seward with the types of compliance requirements described in the State of Alaska Audit Guide and Compliance Supplement for State Single Audits that are applicable to each of its major state programs for the year ended December 31, 2010. City of Seward's major state programs are identified in the accompanying Schedule of State Financial Assistance. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state programs is the responsibility of City of Seward's management. Our responsibility is to express an opinion on City of Seward's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state program occurred. An audit includes examining, on a test basis, evidence about City of Seward's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Seward's compliance with those requirements. In our opinion, City of Seward complied, in all material respects, with the requirements referred to above that are applicable to each of its major state programs for the year ended December 31, 2010. 169 3601 "C" Street, Suite 600 * Anchorage, Alaska 99503 * (907) 278 -8878 * Fax (907) 278 -5779 * www.mcc- cpa.com 1 1D Honorable Mayor and City Council City of Seward, Alaska Internal Control Over Compliance The management of City of Seward is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to state programs. In planning and performing our audit, we considered City of Seward's internal control over compliance with the requirements that could have a direct and material effect on a major state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, and to test and report on internal control over compliance in accordance with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Seward's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the nounal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a state program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a state program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the Slaw first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. This report is intended solely for the information and use of City of Seward's management, Honorable Mayor and City Council, and the State of Alaska and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska June 14, 2011 170 �'1 CITY OF STEWARD Schedule of Findings and Questioned Costs ' Year Ended December 31, 2010 1. Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes X none reported • Noncompliance material to financial statements noted? yes X no Federal Financial Assistance Internal control over major programs: • Material weakness(es) identified? _� yes X no • Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes X none reported Type of auditor's report issued on compliance for major programs? Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A -133? yes X no Identification of major programs: CFDA Agency Number Name of Federal Program or Cluster Environmental Protection Agency 66.468 Drinking Water Loan (ARRA) Department of Education 84.397 Community Economic Stimulus Program (ARRA) Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low -risk auditee? X yes no State Financial Assistance Internal control over major programs: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified that are not considered to be material weakness(es)? _ yes X none reported 171 NINO 1 CITY OF SEWARD 4141i"" Schedule of Findings and Questioned Costs, continued Summary of Auditor's Results, continued State Financial Assistance, continued Type of auditor's report issued on compliance for major programs? Unqualified Dollar threshold used to distinguish a state major program? $75,000 H. Financial Statement Findings None noted. III.Federal Award Findings and Questioned Costs None noted. IV. State Award Findings and Questioned Costs None noted. ` `1u.► 172 CITY OF SEWARD Summary Schedule of Prior Audit Findings `""' Year Ended December 31, 2010 Federal There were no prior year audit findings. State of Alaska There were no prior year audit findings. 173 1 �� CITY OF SEWARD Corrective Action Plan Year Ended December 31, 2010 There are no current year findings; therefore no corrective action plan is required. 174 3i� Sewer Rates and Charges - 2012 Rates for Sewer by Class of Service ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 6% beginning the first billing cycle of the 2012 and 2013 calendar year. The rates thereafter will be adjusted annually beginning the first billing of each calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price Index, All Items, 1982 -84 =100 for all Urban Consumers, Anchorage, Alaska Area ( "CPI ") as published by the United States Department of Labor, Bureau of Labor Statistics. (For example, 2011 rates reflected an increase based on the average CPI for 2004- 2008.) GROUP A - RESIDENTIAL Group A includes all residential customers living in single family or multiple family living units. Multiple family units includes multi - plexes, apartments and townhouses, but excludes hotels, motels and similar transient accommodations. GROUP B - SMALL GENERAL SERVICE Group B includes commercial enterprises where the use of water is incidental to the commercial activity and is primarily limited to domestic and janitorial use. This class of service includes such businesses as hotels, motels, professional office buildings, barber shops, warehouses, libraries, public offices, churches and theaters, etc. GROUP C - LARGE GENERAL SERVICE Group C includes commercial enterprises where water usage is greater than in Small General services and /or water is used for food preparation or other activities, but not for industrial processing. GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE Group D includes commercial and industrial enterprises where water usage is greater than for small businesses and /or water is used for food preparation, other activities and industrial processing as well as general domestic users. BASIS FOR MONTHLY FEES AND CHARGES GROUPS A - D NON - METERED SERVICES Non- metered sewer users in Groups A, B and C shall be charged at the rate of $47.48 per ERU per month, not including tax, when the water service and sewer service serve the same activities. If the activities serviced by the sewer services are different than those served by the water service, a water charge shall be computed based on the activities served by the sewer. The sewer rate shall then be computed at 1.2 times the established water charge. City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2012 Page 4- METERED SERVICES Users with metered service (Group D) shall be charged for sewer service according to the rates listed below. The charge shall be based upon the quantity of metered water, except that those users having a sewer meter shall be charged for the quantity of sewage actually metered. The quantity of sewage will be adjusted if a significant amount of wastewater is not discharged into the city sewer system. Minimum Charge for Each Metered Service Service Size Minimum Monthly Charge 3/4" - 1" water service $42.93 1 -1/2" - 2" water service $71.05 2-1/4" - 4" water service $179.12 Over 4" water service $895.58 Charge for Consumption Gallons of Sewage Discharged per Month Charge per 1,000 Gallons Groups A, B & C Group D First 10,000 Gallons $6.30 $10.12 Next 40,000 Gallons $5.05 $8.10 Next 50,000 Gallons $4.19 $6.76 Next 100,000 Gallons $3.77 $6.10 Next 500,000 Gallons $1.87 $3.92 Next 500,000 Gallons $1.87 $3.92 All Additional Gallons $1.87 $3.92 GROUP E - SPECIAL RATES AND FEES Group E includes charges for other categories of service not included in Groups A through D. City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2012 Page 4 -2 \f 1. Users generating sewage with a BOD and Specified rate in rate tables times a factor of the SS loading in excess of mg /1 (upon a deter- actual BOD and SS loading divided by 250, plus "`dry mination by the utility manager that the the cost of testing concentration and characteristics of the sewage will not cause a detrimental effect upon the sewer system and/or treatment plant [BOD = Biological Oxygen Demand and SS = Suspended Solids] 2. Tank Truck Operators: Fresh sewage, or Per thousand gallons: $48.86 waste from portable or chemical toilets, provided the utility manager determines the waste will not be detrimental to the sewer system and /or treatment plant. NOTE: It is prohibited to discharge into the city s sewer system, septic tank waste or any waste containing toxic or other materials that could cause the city s discharge to violate the EPA or DEC discharge permit. 3. Recreational Vehicles: Individual RV No fee owners utilizing city -owned or approved dump sites $0.82 per day Per RV, camper or trailer permit, not Ned Public and private campground operators including tent campers. [Operators must maintain sufficient records to compute a monthly payment, and such records shall be made available to the city upon request.] 4. Ship's Sewage: Not accepted 5. Sewer Service Connection Fee: Installed at property owner s expense. Any work performed by the city will be charged at total cost, including labor, overhead, administration, materials and equipment PLUS a $125.00 connection fee. 6. Sewer Service Inspection Fee: This fee $100.00 shall be charged for services installed by anyone other than the city. 7. Unauthorized Connection or Discharge Per Occurrence $740.15 into the City Sewer System: PLUS Cost of repair, restoration or cleanup by city City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2012 Page 4 -3 PLUS State and /or federal penalties & charges Actual cost, including city overhead, adminis- Stow' levied against the city or individual8. tration, labor, materials and equipment Restoration of Sewer Service and Repair of Damage by Owner or Contrac- tor to City Facilities: 9. Locate Sewer Main: First Locate: No Charge Each Additional Locate: $74.01 Large projects requiring several locates will be under a special contract and may require a fee. 10. Security Deposit: If a water security deposit Domestic: $37.00 was paid, no additional deposit will be (Single family & duplex) required. If no water deposit was paid, the Commercial: $111.01 following deposits will be charged. Multi- Family: $ 111.01 11. Contractor Work: Any contractor tapping $5000.00 Bond or equivalent cash guarantee into a city sewer main, or otherwise working payable to the city on a city sewer main, must be properly licensed to perform the work and must provide: 12. Sewage Meter: Computed from the quantity of metered water delivered to the same activity unless a sewage meter has been installed. Sewage meters approved by the city may be installed at the user s expense. Interest rate: 10.5% per annum 13. Delinquent Account Charges: Monthly late fee: $5.51 City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2012 Page 4 -4 )1°‘\ Sewer Rates and Charges ® 2013 Rates for Sewer by Class of Service N , ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 6% beginning the first billing cycle of the 2013 calendar year. The rates thereafter will be adjusted annually beginning the first billing of each calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price Index, All Items, 1982 -84 =100 for all Urban Consumers, Anchorage, Alaska Area ( "CPI ") as published by the United States Department of Labor, Bureau of Labor Statistics. (For example, 2011 rates reflected an increase based on the average CPI for 2004 - 2008.) GROUP A - RESIDENTIAL Group A includes all residential customers living in single family or multiple family living units. Multiple family units includes multi - plexes, apartments and townhouses, but excludes hotels, motels and similar transient accommodations. GROUP B - SMALL GENERAL SERVICE Group B includes commercial enterprises where the use of water is incidental to the commercial activity and is primarily limited to domestic and janitorial use. This class of service includes such businesses as hotels, motels, professional office buildings, barber shops, warehouses, libraries, public offices, churches and theaters, etc. GROUP C - LARGE GENERAL SERVICE d Group C includes commercial enterprises where water usage is greater than in Small General services and /or `` water is used for food preparation or other activities, but not for industrial processing. GROUP D - METERED COMMERCIAL & INDUSTRIAL SERVICE Group D includes commercial and industrial enterprises where water usage is greater than for small businesses and /or water is used for food preparation, other activities and industrial processing as well as general domestic users. BASIS FOR MONTHLY FEES AND CHARGES GROUPS A - D NON - METERED SERVICES Non- metered sewer users in Groups A, B and C shall be charged at the rate of $47.48 per ERU per month, not including tax, when the water service and sewer service serve the same activities. If the activities serviced by the sewer services are different than those served by the water service, a water charge shall be computed based on the activities served by the sewer. The sewer rate shall then be computed at 1.2 times the established water charge. City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2013 Page 4 -1 i�� METERED SERVICES rr Users with metered service (Group D) shall be charged for sewer service according to the rates listed below. The charge shall be based upon the quantity of metered water, except that those users having a sewer meter shall be charged for the quantity of sewage actually metered. The quantity of sewage will be adjusted if a significant amount of wastewater is not discharged into the city sewer system. Minimum Charge for Each Metered Service Service Size Minimum Monthly Charge 3/4" - 1" water service $45.51 1 -1/2" - 2" water service $71.31 2 -1/4" - 4" water service $189.87 Over 4" water service $949.31 Charge for Consumption Gallons of Sewage Discharged per Month Charge per 1,000 Gallons Groups A,13 &C GroupD 4 41r First 10,000 Gallons $6.68 $10.73 Next 40,000 Gallons $5.35 $8.59 Next 50,000 Gallons $4.44 $7.17 Next 100,000 Gallons $4.00 $6.47 Next 500,000 Gallons $1.98 ! $4.16 Next 500,000 Gallons $1.98 $4.16 All Additional Gallons $1.98 $4.16 GROUP E - SPECIAL RATES AND FEES Group E includes charges for other categories of service not included in Groups A through D. City of Seward Sewer 'tariff - Revised 10/03/2011, Effective January 1, 2013 Page 4 -2 a1 Users generating sewage with a BOD and Specified rate in rate tables times a factor of the SS loading in excess of mg /1 (upon a deter- actual BOD and SS loading divided by 250, plus mination by the utility manager that the the cost of testing concentration and characteristics of the sewage will not cause a detrimental effect upon the sewer system and /or treatment plant (BOD = Biological Oxygen Demand and SS = Suspended Solids] 2. Tank Truck Operators: Fresh sewage, or Per thousand gallons: $51.79 waste from portable or chemical toilets, provided the utility manager determines the waste will not be detrimental to the sewer system and /or treatment plant. NOTE: It is prohibited to discharge into the city s sewer system, septic tank waste or any waste containing toxic or other materials that could cause the city s discharge to violate the EPA or DEC discharge permit. 3. Recreational Vehicles: Individual RV No fee owners utilizing city -owned or approved dump sites $0.87 per day Per RV, camper or trailer permit, not Public and private campground operators including tent campers. [Operators must maintain sufficient records to compute a monthly payment, and such records shall be made available to the city upon request.] 4. Ship's Sewage: Not accepted 5. Sewer Service Connection Fee: Installed at property owner s expense. Any work performed by the city will be charged at total cost, including labor, overhead, administration, materials and equipment PLUS a $125.00 connection fee. 6. Sewer Service Inspection Fee: This fee $100.00 shall be charged for services installed by anyone other than the city. 7. Unauthorized Connection or Discharge Per Occurrence $784.56 into the City Sewer System: PLUS Cost of repair, restoration or cleanup by city City of Seward Sewer Tariff- Revised 10/03/2011, Effective January 1, 2013 Page 4 -3 PLUS State and /or federal penalties & charges Actual cost, including city overhead, adminis- rr levied against the city or individual8. tration, labor, materials and equipment Restoration of Sewer Service and Repair of Damage by Owner or Contrac- tor to City Facilities: 9. Locate Sewer Main: First Locate: No Charge Each Additional Locate: $78.45 Large projects requiring several Iocates will be under a special contract and may require a fee. 10. Security Deposit: If a water security deposit Domestic: $39.22 was paid, no additional deposit will be (Single family & duplex) required. If no water deposit was paid, the Commercial: $117.67 following deposits will be charged. Multi - Family: $117.67 11. Contractor Work: Any contractor tapping $5000.00 Bond or equivalent cash guarantee into a city sewer main, or otherwise working payable to the city on a city sewer main, must be properly licensed to perform the work and must provide: 12. Sewage Meter: Computed from the quantity of metered water delivered to the same activity unless a sewage meter has been installed. Sewage meters approved by the city may be installed at the user s expense. 13. Delinquent Account Charges: Interest rate: 10.5% per annum Monthly late fee: $5.84 City of Seward Sewer Tariff - Revised 10/03/2011, Effective January 1, 2013 Page 4 -4 'a3 Sponsored by: Administration CITY OF SEWARD, ALASKA taws RESOLUTION 2011 -079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE WASTEWATER TARIFF AND PROVIDING FOR A 6% INCREASE IN CALENDAR YEAR 2012 AND A 6% INCREASE IN CALENDAR YEAR 2013 AND PROVIDING FOR AN AUTOMATIC ANNUAL ADJUSTMENT THEREAFTER TO ALL RATES AND FEES BY AN AMOUNT EQUAL TO THE FIVE PREVIOUS FULL YEARS' AVERAGE INCREASE IN THE ANCHORAGE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS WHEREAS, the most recent external comprehensive study of the City of Seward's utility rates was conducted sixteen years ago (in 1993) by R.W. Beck, resulting in several amendments to the City's wastewater tariff; and WHEREAS, from 1993 through 2008 the consumer price index has risen in excess of 40 %, while rate increases associated with operating and maintenance costs have risen only 29.9 %; and WHEREAS, the City of Seward's enterprise funds are operated in a manner similar to private business entities, in that they establish charges intended to cover the full cost of providing services (including direct and indirect costs) including operations and maintenance, overhead, system expansion and charges for the use of capital facilities; and WHEREAS, in order to qualify for low - interest loans and bond financing for capital infrastructure, the City must be able to demonstrate the adequacy of utility rates as well as the financial capacity for debt repayment; and WHEREAS, the result of the 2010/2011 Budget process was a decision to increase wastewater rates by 4.8% (equals five -year average CPI of 2.8% plus 2 %) effective January 1, 2010 and 5.1% (equals five -year average CPI of 3.1% plus 2 %) effective January 1, 2011, in addition to automatic rate increases annually thereafter, equal to the five -year average CPI each year effective the first billing cycle of each year, in order to (at a minimum) keep pace with cost increases; and WHEREAS, the Seward City Council conducted a reassessment of enterprise fund capital infrastructure and rate review in work sessions in preparation for the 2012/2013 Biennial Budget, the outcome of which identified the need to raise rates above the CPI in order to cover the cost of capital infrastructure repairs and replacement, as well as operational shortfalls; and mem 1 CITY OF SEWARD, ALASKA RESOLUTION 2011 -079 WHEREAS, a result of the 2012/2013 Budget process was a proposed increase in wastewater rates of 6% effective January 1, 2012, and 6% effective January 1, 2013, followed by automatic rate increases annually thereafter, equal to the five -year average CPI each year effective the first billing cycle of each year (in order to) at a minimum, keep pace with cost increases; and WHEREAS, a 6% rate increase in calendar year 2012 and 2013 will provide necessary, critical relief from rising operation costs and the cost of critical capital infrastructure repairs and replacement; and WHEREAS, limiting rate increases only by the CPI will not sufficiently cover the cost of operations, critical capital infrastructure repairs and replacement or demonstrate adequate financial health that is needed to qualify for low interest loans; and WHEREAS, the rate and fee schedule will resume the automatic annual adjustment by the previous published five years' annual increases in the Consumer Price Index beginning January 1, 2014; and WHEREAS, annual rate adjustments will assist in demonstrating the City's weiti commitment to maintaining a financially sound utility, and will serve to mitigate potential `rate shock' associated with infrequent rate hikes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THAT: Section 1. The Wastewater Tariff is hereby amended to establish a new initial paragraph prior to "Group A- Residential" on Page 4 -1, to read as follows: ANNUAL RATE ADJUSTMENT: The rates and fees herein provided are adjusted 6% beginning the first billing cycle of the 2012 and 2013 calendar year, The rates thereafter will be adjusted annually beginning the first billing of each calendar year to reflect an average of the five previous published years' annual increase in the Consumer Price Index, All Items, 1982 -84 =100 for all Urban Consumers, Anchorage, Alaska Area ( "CPI') as published by the United States Department of Labor, Bureau of Labor Statistics. (For example, 2011 rates reflected an increase based on the average CPI for 2004 - 2008.) Section 2. All previous Resolutions in conflict herewith are hereby repealed effective December 31, 2011. Inj ‘1rrr 1� CITY OF SEWARD, ALASKA RESOLUTION 2011 -079 Section 3. The rates, fees, and charges incorporated herein by reference and attached hereto as "Sewer Rates and Charges — 2012" are effective January 1, 2012 and as "Sewer Rates and Charges — 2013" are effective January 1, 2013, and are hereby ADOPTED. Section 4. This resolution shall take effect ten days following approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of October, 2011. THE CITY OF SEWARD, ALASKA Nerd J David Seawa i- ayor AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: None ABSTAIN: None ATTEST: i J hanna Kinney, CMC L City Clerk (City ,410 lei Q. O w0*. 1 Y o °4'4.4 OF Council Agenda Statement Meeting Date: October 24, 2011 e u F s sea. 4 From W.C. Casey, Public Works Director 0. Agenda Item: Amending the Wastewater Tariff and Providing 44 P Automatic Annual Adjustments to All Rates The Seward City Council has held two work sessions to discuss the past, current and future financial and mechanical performance of the wastewater enterprise fund in regards to the 2012 and 2013 Wastewater Capital Budget. Staff was given the opportunity to highlight the critical needs of the department and offered some recommendations in addressing these critical needs. Customer rates and charges in the Wastewater Enterprise Fund, have been amended four times (5% in 2004, 15% in 2005, 4.8 % in 2010 and 5.1% in 2011) since the early 1990's. The cumulative consumer price index between 1993 and 2008 is in excess of 39 %. Due to the manner in which the wastewater fund is operated (similar to private business entities), expenses and operating costs have gradually begun to exceed revenues. Generating revenues in a manner that will allow for the funding of critical needs, depreciation, capital projects, repair and replacement of infrastructure has become unachievable. Compounding the issue of revenue shortfalls is the ADEC requirement that the Wastewater Fund show proof for the financial *kw capacity to incur debt. ADEC has sustained its ability to make funds available through very competitive grants and loans, and it is absolutely necessary for the City to maintain the leverage to take advantage of these funding mechanisms (70 % -30% Municipal Matching Grants and 1,5% Municipal Loans). Forward thinking in regards to Project Development and Project Funding is crucial in order to make the City eligible for these opportunities. The 6% rate increase in calendar year 2012 and 2013 will provide necessary critical relief from rising operation costs and the cost of critical capital infrastructure repairs and replacement. The proposed rate increase will help the Wastewater Enterprise Fund catch -up to the cost of doing business in 2008, but will still leave the fund 3,3% behind 2008 CPI prices. The rate and fee schedule will resume the automatic annual adjustment by the previous published five years' annual increases in the Consumer Price Index beginning January 1, 2014. This will assist in demonstrating the City's commitment to maintaining a financially sound utility, and will serve to mitigate potential `rate shock' associated with infrequent rate hikes. This proposed tariff does NOT include a fee for the purpose of recovering costs associated with individuals who elect to turn off utilities seasonally. However, if the City Council desires to amend the tariff at this time to recover the lost revenue associated with the monthly customer charge fee for those customers who stop service seasonally, we would propose the following amendment: Sewer seasonal vacancy fee: A turn-off vacancy fee is assessed when the water service is disconnected for seasonal purposes = $166.18. A separate turn-on vacancy fee is assessed when Stow the water service is reconnected after being turned off for seasonal purposes = $166.18. The basis for this recommendation is to charge the cus r the monthly non - metered service fee of $48.48 multiplied by seven months (and then dividdd half; one -half assessed at the time of I -� water turn -off and the other half assessed at the time of water turn -on). This methodology follows that used in the water tariff and electric tariffs (as proposed) to address the adverse impact of seasonal turn -offs to the utilities. INTENT: The adoption of the proposed amendments to the Wastewater Tariff and resuming the automatic annual adjustments to all rates will improve the financial condition of the Wastewater Enterprise Fund. This will also improve the utilities' ability to address critical infrastructure needs, fund depreciation, fund operations and maintain crucial leverage to take advantage of the ADEC grant and loan programs. FISCAL NOTE: Rates and fees are adjusted 6% beginning the first billing cycle of the 2012 and 2013 calendar year. The rates thereafter, will resume the automatic annual adjustment beginning the first billing of each calendar year to reflect an average of the five previous published years' annual increases in the Consumer Price Index M Approved by Finance Department: ‘Z- %G liA _., ATTORNEY REVIEW: Yes No X RECOMMENDATION: ftiod Council approves Resolution 2011- ) amending the Wastewater Tariff and resuming the automatic annual adjustments to all rates and fees by an amount equal to the five previous full year's average increase in the Anchorage consumer price index for all urban consumers beginning January 1, 2014. 3 a cC City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page CALL TO ORDER The July 9, 2012 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Lt. Louis Tiner led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Jean Bardarson Christy Terry Vanta Shafer Bob Valdatta Ristine Casagranda comprising a quorum of the Council; and Jim Hunt, City Manager Cheryl Brooking, City Attorney Johanna Kinney, City Clerk Absent — Marianna Keil CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING — None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Terry) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: The June 25, 2012 City Council Regular Meeting Minutes and the June 27, 2012 City Council Special Meeting Minutes were approved. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Ryan Reynolds Was Recognized For His Service On The Historic Preservation Commission With A Certificate Of Appreciation. City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page July Was Proclaimed As National Parks And Recreation Month. Nod Certificates Of Appreciation Were Presented To The Homer Electric Association, Mark Peery And Harvey Ambrose For Their Technical Assistance With The Fort Raymond Generator Project. A Certificate Of Appreciation Was Read For The Second Annual Kenai Peninsula Borough Weed "Smackdown ". Borough Assembly Report, Sue McClure stated she participated in the Weed Smackdown at Seward Middle School and it was nice to see parents involving their children to support the community. The assembly met on the July 3, 2012 in a short meeting to accept and appropriate state money through the Alaska Legislature. The assembly was required to go through an ordinance process for each item, including public hearings. Assembly meetings and votes may appear to be quick and "rubber stamped ", but actually that was because they had already conducted committee meetings prior to their assembly meeting. The next meeting would be held on August 7, 2012 and there were several items on the agenda, including an ordinance for the Seward Bear Creek Flood Service Area Board to change all seats to at -large in an effort to fill all the seats on the board. She hoped to have a resolution of support from the Seward City Council at the next assembly meeting. There would be state monies coming through on August 7, 2012, including $1,625,000 for security cameras for borough schools, $2,000,000 for the new radiation oncology project, and $8,000,000 for Road Service Area Capital Improvement Projects. The agenda would also include the acquisition of a 150 -acre property along Salmon Creek which would be left to grow wild as a flood mitigation effort. As of July 1, 2012, the Lowell Point Emergency Service Area was officially abolished and she wanted to commend everyone who served on that board since 2003. The Lowell Point Community Council would oversee the Lowell Point Volunteer Fire Department going forward. The Kenai Peninsula Borough's Sister City of Akita, Japan was sending a delegation of visitors in late July and would be coming to Seward to visit Exit Glacier, the Alaska SeaLife Center and to meet with city officials. City Manager's Report, Jim Hunt stated the following expenditures for between $10,000 and $50,000 were approved by the City Manager since the last council meeting: • Emergency purchase of a sewer pump for Lift Station #3 for $40,722. • Change Order for the Library /Museum for $22,412. The Finance Department began training on their new financial accounting software. Software planning and configuration would take place over the next few months, including data conversion, with an expected implementation of January 1, 2013. The existing accounting system software was still non - functional, but they were continuing to work on bringing the current system back online. The department was developing a request for proposals for the waste management franchise, and expected to have the criteria for council's review at the next meeting. The Teen and Youth Center's Teen Council made over $900 at Dunk Tank and Fourth of July ` Sales. The Parks and Recreation Department wanted to thank the Seward Volunteer Fire Department City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page for their role in helping the TYC with their Fourth of July booth. The city requested quotes from three local earthmoving construction contractors to prepare the site at Seward Marine Industrial Center (SMIC) for dredged material. A pre -bid meeting was scheduled for July 10, 2012 and the bids were due July 17, 2012. The decision would be made based on the lowest price. The Annual Consumer Confidence Reports for the city's water system and the SMIC water system were completed and mailed to all post office box holders with zip code 99664. On June 27, 2012 the Electric Department performed a successful test of the backup generation system in which all six generators were started up and synced with Chugach Electric for approximately one hour. Four representatives from Coastal Villages Region Fund (CVRF) were in Seward on July 5, 2012 during Senator Begich's visit. Begich advised the city to view the Coastal Villages project on a large scale, to think big and long -term. However, it would unfold incrementally and in phases over the next 15 -20 years. Assistant City Manager Ron Long stated the most encouraging part was having representatives from CVRF and Senator Begich in person at SMIC looking at the area and visualizing what the project would look like. Fire Chief David Squires said there were three individuals removed during the various races, including a junior, a female and a male runner. The junior racer received treatment in Seward and the female and male runners were both medevac'd to Anchorage for treatment. He thanked everyone from the community for their support while they continued to search for the missing Mount Marathon runner. He said the support they had received was tremendously helpful and he appreciated everyone's efforts. However, there was no new information on the missing runner. They would be starting the search again tomorrow at 9:00 a.m. Seaward, referring to the Phase 1 blueprint at SMIC, asked if there could be an open house or community meeting about this project. Casagranda asked about the status of the painting of the transformers and wondered if it needed to be done in the summer. Foutz said that the painting was included in the overall generator project, and would be completed by September this year. Valdatta informed Foutz that the electric lines along the Snow River basin were dragging very near the water. Mayoral Report, David Seaward stated Chief Squires had been remarkable in coordinating the search and rescue operation for the missing runner. He thanked the community members and volunteers for their support, and those who brought in food for the searchers. The missing person's family was thankful for the community of Seward. He hoped everyone had a good Fourth of July. On July 5, 2012, he welcomed Senator Begich. Seaward asked Begich if he had any updates on the potential closure of the Air Force Recreation Campground, and Begich said he would get back to Seaward on that. Seaward read a letter of congratulations that Begich presented to the mayor for the citizens on the 100 Anniversary of the city's incorporation. City Attorney Report, Cheryl Brooking said she did not have a detailed report, but mentioned that the U.S. Supreme Court had validated the Federal Health Care law. Other Reports, Announcements and Presentations - None 1 '�1 City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page PUBLIC HEARINGS Resolution 2012 -048, Approving The Submittal Of The Kenai Peninsula Borough Petition To Vacate And Recommending The Approval Of The Vacation Of The 200 Foot Number 3 Water Well Easement Located In The Fort Raymond Subdivision, South Of Sea Lion Drive. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Hunt stated Well Number 3 had been officially decommissioned, abandoned and filled, and according to city code, he was requesting that council give approval for the vacation. Motion (Bardarson /Shafer) Approve Resolution 2012 -048 Motion Passed Unanimous NEW BUSINESS Resolution 2012 -049 Authorizing The City Manager To Enter Into A Grant Agreement With The Division Of Homeland Security And Emergency Management Hazard Mitigation Program, And Accept The Total Award $349,982 For The Dairy Hill Drainage Improvement Project, And Appropriating Funds. Motion (Bardarson /Shafer) Approve Resolution 2012 -049 Terry supported this project and believed the completion of this project would make a positive difference to the residents. She said it would keep one of Seward's escape routes accessible in a time of flooding. Casagranda said the last time the city received money from the Department of Homeland Security (DHS), there were many things tied to it, and so this made her worry because it seemed like a lot to stay on top of. Hunt felt it was fairly standard and routine. Public Works Director William Casey provided some clarification regarding the grant. He said that FEMA was controlled by DHS, and when the federal government declared a disaster, they set aside a pot of money which then becomes available for mitigation projects. He said this grant was a good thing and did not require a match from the city. Valdatta added the last three floods had really done damage in the area, so this work would help a great deal. Motion Passed Unanimous Resolution 2012 -050, Authorizing The City Manager To Issue A Professional Services Agreement With CRW Engineering Group, LLC, The Most Qualified, Responsive And Responsible Proposer, For The Dairy Hill Drainage Improvements Professional Engineering And Construction Management Services For An Amount Not -To- Exceed $65,975.00, And Appropriating Funds. Motion (Bardarson /Shafer) Approve Resolution 2012 -050 City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page Slow Hunt said on Page 32, Section 10 of the packet, the word "sole" would be stricken from the final contract. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS (No action required) Providence Seward Financial Report for May 2012. COUNCIL COMMENTS Bardarson offered her condolences to the family of Michael LeMaitre, the missing runner, and thanked the volunteers for their search efforts. She also thanked the citizens who put together the Fourth of July festivities. Shafer thanked the city for repairing Mary Lowell's headstone. She thanked the community for their efforts to locate the missing runner. It was a tough thing, but she was hoping for a positive outcome. Valdatta complimented the Public Works Department for trimming the hedges around the lagoon. St., Terry thanked Ryan Reynolds for his service to Historic Preservation Commission. She would not be at the next meeting, so she reminded everyone that July 28, 2012 would be Ted Stevens Day. She said Public Works did a great job with their water /sewer informational reports that went out to citizens, encouraging everyone to read the information and try to act on some of the tips included in the information. She thanked Public Works for the great quality of water in our town and the distribution of the water quality reports. She expressed her concerns for the missing runner and sent her prayers to his family. Words could not express her concern, but she hoped for a good resolution. Long said the delegation from Akita, Japan would be in Seward on July 19, 2012 for a dinner and would be extending an invitation to the council through the clerk's office. Seaward thanked everyone for attending and watching the meeting tonight. He asked everyone to keep missing racer, Michael LeMaitre, and his family in their thoughts and prayers. City Clerk Johanna Kinney asked for direction from council on whether a support resolution should be brought forward at the next meeting regarding the borough's effort to make the seats for the Seward Bear Creek Flood Service Area Board at- large. Council directed the City Clerk to bring forward a resolution of support at the next council meeting for the Seward Bear Creek Flood Service Area Board seats to be changed to at -large by unanimous consent. Skop- CITIZENS' COMMENTS 133 City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page Sue McClure asked for an update on the sidewalks on behalf of the senior citizens who had difficulty with some of them, particularly those south of the post office. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Valdatta said he was impressed that one of the bridges on the Seward highway near the Wildlife Management Area was repaired in an 8 -hour period. Shafer asked for an update about the sidewalks at the next meeting, and Terry asked for the update to also include streets. EXECUTIVE SESSION Motion (Terry /Shafer) Go into Executive Session to discuss matters pertaining to pending litigation of Resurrection Bay Conservation Alliance vs. The City Of Seward and give direction to the City Attorney. The City Attorney, City Manager, and Assistant City Manager were invited to be present for this executive session. Motion Passed Unanimous Council Recessed at 8:08 p.m. Council Resumed at 8:10 p.m. Council went into executive session at 8:10 p.m. Council came out of executive session at 8:24 p.m. aL\ City of Seward, Alaska City Council Minutes July 9, 2012 Volume 38, Page ADJOURNMENT The meeting was adjourned at 8:26 p.m. Johanna Kinney, CMC David Seaward City Clerk Mayor (City likow MEMORANDUM e j oF s et . Meeting Date: July 23, 2012 ,< 9a u From: Johanna Kinney, City Clerk w ' SAP Agenda Item: Appointments to the Port & Commerce Advisory • Board BACKGROUND & JUSTIFICATION: There are currently three seats becoming vacant on the Port & Commerce Advisory Board for council appointment. The vacancy was noticed for the entire month of June with a deadline of July 13, 2012. Four citizens have submitted their applications: Krystin Bablinskas, Bruce Jaffa, Steven Fink, and Darryl Schaefermeyer. Their applications are included in the packet for your review. Council will need to appoint three people from the four applicants that will serve terms expiring in July 2015. The mayor and council will have ballots with all four names on them. Each member should vote for three applicants. Please pass the voted ballots to the City Clerk and they will be read aloud and tallied. In accordance with Seward City Code 2.10.40, 2.30.310, and Seward Charter 3.5, an applicant must receive at least four of the votes to be appointed. SCC 2.30.310 states the council appoints by ballot voting if there is more than one applicant for the position. RECOMMENDATION: Council conducts a vote to determine which applicants should fill the Port and Commerce Advisory Board vacancies with terms expiring in July of 2015. CITY OF SEWARD, ALASKA rz- . 0 APPLICATION FOR THE JUN 2 7 2012 FOR THE PORT & COMMERCE ADVISORY BO C ,L ' = r l � s F °dE fi NAME: {' f c.\ t pct b t instiai STREET ADDRESS: ICS / ra o 1)1( A- - A MAILING ADDRESS: P.O. J c c HOME TELEPHONE: Q 3i 9- -6 33 / BUSINESS PHONE: FAX NUMBER: EMAIL: kbabltY1SVuS ma( cm vv1 LENGTH OF RESIDENCY IN THE SEWARD AREA: 3 otem •bps PRESENLY EMPLOYED AS: &) yi.Qp -r List any special training, education or background you have which may help you as a member of the Board. ',La, g, • (1 yid S uucvd . e,'' 0 a - nLrnt r P.m A-- rut ki" h & , a-4- 1« ) Have you ever been involved in port operations? If so, briefly describe your involvement: Na, I am specifically interested in serving on the Port and Commerce Advisory Board because: hcuQ ci. Seu.z.v6 � „r OC ctt i s n kjts + Guld cvouid 1, Le ft, Cthh i - e 1a ivAcitytei S:t,o,)ad as cc. 'A t csw/iul Have you ever served on a similar board elsewhere? Yes .i No If so, where? And when? Are you available for meetings at noon (second Wednesday of each month)? c(os If appointed, are you willing to travel occasionally? -(ee S - U DATE Sow REC ErjED JUN 26 ZOIZ so 2 , s 20\2. I CITY CLSRK CM' CITY OF SEWARD, ALASKA APPLICATION FOR THE PORT AND COMMERCE ADVISORY BOARD (PACAB) NAME: STREET ADDRESS: MAILING ADDRESS: HOME TELEPHONE: ,.. . BUSINESS PHONE: FAX NUMBER: EMAIL: ;:vpi. A (:!!:_ e*T LENGTH OF RESIDENCY IN THE SEWARD AREA: PRESENLY EMPLOYED AS: List any special training, education or background you have which may help you as a member of the Board. ketk. ef is A 4 C Have you ever been involved in port operations? If so, briefly describe your involvement: I am specifically interested in serving on the Port and Commerce Advisory Board because: - tC ) YLL; C Have you ever served on a similar board elsewhere? 6 No t:X\IL If so. where? And when? Are you available for meetings at noon (second Wednesday of each month)? If appointed, are you willing to travel occasionally? 1() t SIGNATURE DATE '1414110 0v sF 10 2012 ; JUL q, .,iT ND COMMERCE ADVISORY BOARD (PACAB) : .._ H-q.S. APPLICATION NAME: i J -Q \ic V; .1, r, STREET ADDRESS: 2 ' 0 4 ( v re A'? �- - C ' `, -1- MAILING ADDRESS: /7 .0, )30AP td 9 6 / SP � , y lam- 9 ��V 4 HOME TELEPHONE: 3 6 f 30'7 0 BUSINESS PHONE: ZZ J —6 e v /8Z s EMAIL: 5 -e I , T L i vN 1 � ©g tv a 1, 6 °1' LENGTH OF RESIDENCY IN THE SEWARD AREA: /3 L Ut ,. i ,aT PRESENTLY EMPLOYED AS: (p # h �C. 7 / T A V'7 C. Xi„S,k„ SS f iSeL,A 1 ,, rt! c List any special training, education or background you have which may help you as a member of the Board: ap 4 / F rto&fr- S / y.-0 oJ-, p4(40 , / y " 'Ws ; 1-, 5 V c , c r d S' u / I I i i l ' : . he.,, &r 1 6: 44 m-c IA/ ( I ' Le crec l amt / $ac1 ` Have you ever been involved in port operations? If so, briefly describe your involvement: ,{/ I am specifically interested in serving on the Port and Commerce Advisory Board because: r `'7`" 1 7 U ;,,ir � r i dS ✓s kA--1s ULi ,r,-R e --- , 01 / Hipii t In C-et,, -< 7,. 7 i Vrf cs �--� 11 u f Have you ever served on a similar board elsewhere? Yes orG) 24Ie r 14'x M ( 4 If yes, where? When? Are you available for meetings at noon (second Wednesday of each month)? 412, or No If appointed, are you willing to • . vel occasionally)? 11 or No �/ DA \‘- 1 of S Fh. RECEIVE JUL . 2012 s ' ' d ` t T AND COMMERCE ADVISORY BOARD (PACAB) Cdr( tr APPLICATION NAME: 6- �G 4''C STREET ADDRESS: ( 71i MAILING ADDRESS: 7- a` /7. HOME TELEPHONE: .7- BUSINESS PHONE: 2 7 EMAIL: ehl'ev !Gc?f' 4.t as Cr LENGTH OF RESIDENCY IN THE SEWARD AREA: 5-7 PRESENTLY EMPLOYED AS: 6 `6l�I"`,'1r6t I0 List any special training, education or background you have which may help you as a member of the Board: 6 of �•v� o �%!� - z C liy� / C77 - / 19 7 Have you ever been involved in port operations? If so, briefly describe your involvement: l/ - -S - .Yh�.L sae I am specifically interested in serving on the Port and Commerce Advisory Board because: _< - �� Have you ever served on a similar board elsewhere? Sor No If yes, where? �k✓/r!'-g f' 1GAS When? ,� 6 Are you available for meetings at noon (second Wednesday of each month)? LYes)or No If appointed, are you willing to travel occasionally)? 40 or No 7/i S GNATUR DA1' Nod 0 COMMITTEE ON ARMED SERVICES MARK BEGICH COMMITTEE ON COMMITTEE ON THE BUDGET ALASKA COMMERCE, SCIENCE, AND TRANSPORTATION COMMITTEE ON ;.CHAIRMAN, SUBCOMMITTEE ON OCEANS, HOME N TAL A ` ` FY AND *��� ��`e T tnaI ATMOSPHERE COMMITTEE ON VETERANS' GOVERNMENTAL AFFAIRS WASHINGTON, DC 20510 1 1111W . July 2, 2012 The Honorable David Seaward Mayor PO Box 167 Seward, AK 99664 -0167 Dear Mayor Seaward and all citizens of Seward: Congratulations on 100 years of city government in one of Alaska's most historic, dynamic, and productive cities. Since Seward was settled in 1903, its rich history has provided Alaska with some of its most cherished traditions and landmarks. These include Mile 0 of the Iditarod trail and Alaska's flag, designed by Seward's Benny Benson. I admire the fierce spirit with which Seward's residents have applied themselves to a multitude of challenges, from constructing the beginning of the Alaska Railroad in 1903, to racing up Mount Marathon. '"" Seward's natural beauty and location have also made it an important center of commerce, providing access to both rural and developed Alaska. With one of the most lucrative fisheries in the nation and a strategic port, Seward is critical to Alaska's economy. A three -time winner of the All - America City Award, it comes as no surprise that Seward and the nearby Kenai Fjords National Park are some of the most popular tourist destinations in the state. I greatly appreciate the central role Seward has played in Alaska's continued development. Congratulations on a vibrant century of culture, progress, and commerce. I look forward to seeing the city of Seward continue to flourish in the coming years. Sincerely, 8/..... -717- 4 Mark Begich United States Senator SUITE 750 SUITE 328 SUITE 308 SUITE 101 SUITE 230 SUITE 309 SUITE SR -111 510 L STREET 101 12TH AVENUE ONE SEALASKA PLAZA 805 FRONTAGE ROAD 1900 FIRST AVENUE 851 EAST WESTPOINT DRIVE RUSSELL BUILDING ANCHORAGE, AK 99501 FAIRBANKS, AK 99701 JUNEAU, AK 99801 KENAI, AK 99611 KETCHIKAN, AK 99901 WASILLA, AK 99654 WASHINGTON, DC 20510 (907) 271-5915 (907) 456-0261 (9071 586-7700 (907) 283-4000 (907) 225-3000 (907) 357-9956 (202) 224-3004 I . �... � Ir 7 - 5, Kurogane - cho City, y Hokkaido ' 085 - 8505 Japan KUSHIRO CITY - { Tel 0154 -31 - 450 3 Fax 0154 - 23 June 27, 2012 The Honorable David Seaward Mayor of Seward Seward, Alaska USA Dear Mayor Seaward: On behalf of the City of Kushiro, I would like to extend my greetings from your sister port to the citizens of the city of Seward. It is indeed a great pleasure for us to celebrate the 30th Anniversary of the Signing of the Sister Port Agreement in July 2012. I would like to thank everyone involved in nurturing our Sister Port relationship over the past 30 years. As a token of the friendship between our two ports, I have enclosed a memorial plaque for the "Silver Salmon Derby" in Seward. I sincerely hope for a successful event for you. I wish you all good health and happiness. Regards, Hiroya Ebina Mayor of Kushiro, Japan July 2012 July 2012 August 2012 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 Irr 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 29 30 31 Jul2 Monday Tuesday I Wednesday I Thursday y Friday 4 5 J 6 1 Offices Closed; 4th of . 12:30pm Sen. Begich N 9 10 11 12 j 13 6:00pm CC WS; Coasta 11:30am Seward Comm 7:00pm City Council M m rn 16 17 18 119 20 6:00pm P &Z WS; P &Z 12:00pm PACAB Mtg 7:00pm P &Z Special M N VD N 7 23 24 25 26 127 7:00pm City Council N rn N 30 31 Aug 1 2 3 rn 01 * - 5 0 Nanci Richey 1 7/18/2012 8:23 AM 2 St � O � � August 2012 September 2012 August SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 1 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 23 24 25 26 27 28 29 30 Monday Tuesday Wednesday Thursday Friday Jul 30 31 Aug 1 2 3 12:00pm PACAB Meetin M 0) 7 Q O m 6 7 8 9 10 7:00pm P &Z Meeting 11:30am Seward Comm 0 C 0 Q 13 -- — 14 15 16 17 7:00 m City Council M 12:00pm PACAB Work S ' ,.._ --�- 6:30pm Historic Preser N m rn 0 Q 20 21 22 23 24 6:00pm P &Z Work Ses v N O N 0) n Q ... .._a,_...._ .......... �NN 28 29 30 31 7:00pm City Council M) . P rimary Election m N N LSl 7 Q Nanci Richey 1 7/18/2012 8:24 AM