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HomeMy WebLinkAbout06242013 City Council Packet ...... Seward City Council Agenda Packet . . .‘, , ,,,,,,,..„...., ' , ', ..,rti .,,,,,,,, . _ . i. ,..,„.,„ ., 0, ,,...,. ., . , ', , ,• ,ri . , ... ,,,, ..,,, ..‘,. , ,., , _ . , ...4r - 1. --,,,,,, • , t K ' „'4'+. ' "t � L : y .. !' ` L ! 1 : I fir' x i, �r 1, . i c sr 't wr a. a s Mw i..It ,.. w 1 4 1` " *4 / k :,, " ' 4 u't;i — t. - 5.' , ' . -- ' „S .± ;. ^ r i+ Mile 13.5 June 24 2013 , Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA 1- Amereagtty a IS 11111 II {Please silence all cellular phones and pagers during the meeting} <► June 24, 2013 7:00 p.m, Council Chambers 1. CALL TO ORDER David Seaward 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2013 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Jean Bardarson [Those who have signed in will be given the first opportunity to Vice Mayor speak. Time is limited to 3 minutes per speaker and 36 minutes Term Expires 2014 total time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA Robert Valdatta [Approval of Consent Agenda passes all routine items indicated by Council Member asterisk ( *). Consent Agenda items are not considered separately Term Expires 2013 unless a council 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 B. Chamber of Commerce Report Council Member C. City Manager's Report Term Expires 2013 D. City Attorney's Report E. Mayor's Report Marianna Keil F. Other Reports and Presentations Council Member Term Expires 2014 1. Annual audit presentation from Mikunda, Cottrell & Co. for the year ending December 31, 2012. Ristine Casagranda Council Member 2. Second Quarter Report from Planning & Zoning Term Expires 2014 Commission. James Hunt City Manager Johanna Kinney City Clerk Cheryl Brooking City Attorney City of Seward, Alaska Council Agenda June 24, 2013 Page 1 7. PUBLIC HEARINGS A. Resolutions Requiring Public Hearing 1. Resolution 2013 -047, Authorizing The City Manager To Negotiate And Execute A 'toad Lease Agreement With He Will Provide Inc. For The Purpose Of Providing A Charitable Food Distribution Program In The Basement Of The. City Annex Building .Pg. 4 2. Resolution 2013 -048, Authorizing The City Manager To Enter Into A New Lease With Raibow Fiberglass And Boat Repair, LLC For Lot 4, Block 3 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -27 Seward Recording District, Third Judicial District, State Of Alaska Pg. 13 8. UNFINISHED BUSINESS - None 9. NEW BUSINESS A. Ordinances for Introduction *1. Ordinance 2013 -010, Amending Portions Of Seward City Code 15.25. Floodplain Management To Adopt The Digital Floodplain Rate Maps (DFIRM) And The Flood Insurance Study (FIS) Dated September 27, 2013 As Established By FEMA And Update Portions Of Chapter 15.25 To Minimum FEMA Requirements . Pg. 51 B. Resolutions *1. Resolution 2013 -049, Accepting Funds From The Alaska Online With Libraries (OWL) Project For An AWE Early Literacy Station In The Amount Of $2,953.00 And Appropriating Funds Pg. 66 *2. Resolution 2013 -050, Authorizing The City Manager To Sign An Extension Of A Special Services Contract Between The City Of Seward And The Department Of Public Safety Providing Dispatch And Clerical Services To Public Safety Employees In The Seward Area For Forty Eight Thousand And Five Hundred Dollars ($48,500.00) Pg. 79 *3. Resolution 2013 -051, Authorizing The City Manager To Enter Into A Construction Contract With Harmon Construction For The Civil And Site Work And For The Foundation Of The Electric Department Warehouse In An Amount Not To Exceed $493,190, Establishing A 10% Contingency Fund And Appropriating Funds Pg. 83 *4. Resolution 2013 -052, Authorizing The City Manager To Enter Into A Revised Contract With The International Brotherhood Of Electrical Workers (IBEW) Effective July 1, 2013 And Ending June 30, 2016 Pg. 111 C. Other New Business Items 1. Discussion on council repealing Seward City Code 5.45, Hotel /Motel Room Tax. (Seaward) Pg. 156 Ned City of Seward, Alaska Council Agenda June 24, 2013 Page 2 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) - None 11. COUNCIL COMMENTS 14 Iii.► 12. CITIZEN COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.) 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT Ifikir City of Seward, Alaska Council Agenda June 24, 2013 Page 3 Sponsored by: Hunt CITY OF SEWARD, ALASKA `" RESOLUTION 2013 -047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A LEASE AGREEMENT WITH HE WILL PROVIDE INC. FOR THE PURPOSE OF PROVIDING A CHARITABLE FOOD DISTRIBUTION PROGRAM IN THE BASEMENT OF THE CITY ANNEX BUILDING WHEREAS, He Will Provide Inc. ( "HWPI "), established locally in 2007, is the only Seward -based charitable food distribution program; and WHEREAS, HWPI was organized by a number of local entities, has no specific religious affiliation, and its services are available to any Alaskan regardless of need; and WHEREAS, HWPI provides food for up to 100 Seward area individuals weekly; and WHEREAS, HWPI is one of only two food banks statewide that is able to offer a shopping - like service for individuals and families; and WHEREAS, HWPI needs a new location in which to operate because the building it ... currently occupies has been sold and it must vacate its current location; and WHEREAS, the relocation of the Library /Museum into its new building has left vacant space in the former library building located at 238 Fifth Avenue, now referred to as the City Annex Building; and WHEREAS, HWPI provides an important public service through its food distribution program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council finds that the public's interest is not served by conducting an appraisal as a basis for establishing the lease rate, and that authorizing the City Manager to negotiate and execute a lease with HWPI for less than fair market value is in the public's interest. Section 2. The City Manager is authorized to negotiate and execute a Lease Agreement with HWPI, to lease approximately 1200 square feet of the south and west corner of the City Annex Building at 238 5th Avenue, Seward, Alaska, upon substantially the terms specified in the attached form of lease. CITY OF SEWARD, ALASKA RESOLUTION 2013 -047 Section 3. The 2013 budget for General Fund Lease revenues is hereby amended to increase by $3,125 for the period of approximately August through December, 2013. Section 4. This resolution shall take effect 30 days after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of June, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) 5 Council Agenda Statement e seyy9 Meeting Date: June 24, 2013 k ; t 'o From: Ron Long, Assistant City Man q`p Agenda Item: He Will Provide Inc. Lease BACKGROUND & JUSTIFICATION: The He Will Provide Inc. Food Pantry is a 501(c) (3) registered coalition of charitable organizations that joined forces in 2009 to help meet the nutritional needs of Seward. The group helps feed up to 100 individuals weekly. The building space that has been occupied by the Food Pantry since its inception has been sold and the group is looking for a new space to operate from. Construction and relocation of the new Library /Museum has made space available in the City of Seward's Old Library /new City Hall Annex Building. A Lease agreement between the City and the Food Pantry will benefit the community and make good use of the vacant space. Based on the charitable service provided, administration recommends that council finds it to be in the public's best interest to establish a less than full market value lease rate. INTENT: Authorize the City Manager to negotiate and execute a lease agreement with He Will Provide Inc. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: 1 The Comprehensive Plan "values the contributions of the various X organizations and individuals that work to better our community" Strategic Plan: 2. The Strategic Plan supports "being responsive to the needs of its citizens ", X "values a sense of community" and "enhance social services ". 3. Other (list): FISCAL NOTE: This lease agreement will generate $7,500 in rental income per year, for a total of $37,500 gross income over the full five -year term. The lessee will be responsible for its own janitorial and maintenance costs, but the City will bear the water, sewer, and electric utility costs associated with the leased space. Approved by Finance Department:�� ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approve Resolution 2013 - Authorize the City Manager to negotiate and execute a lease with He Will Provide Inc. Food Pantry and the City of Seward. 0 LEASE ‘liaor BETWEEN THE CITY OF SEWARD AND "HE WILL PROVIDE INC." THIS LEASE AGREEMENT (the "Lease ") is made by and between the CITY OF SEWARD (the "City "), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and HE WILL PROVIDE INC. ( "HWPI "), whose mailing address is P.O. Box 3445, Seward, Alaska 99664 (collectively "the Parties "). WHEREAS, the City is willing to rent certain real property to be used by HWPI for storage and distribution of food; and WHEREAS, the City Council of Seward has determined that lease of the property described herein to HWPI for the purposes described herein for less than fair market value is in the public interest. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the Parties hereto agree as follows: TERMS: 1. LEASE OF REAL PROPERTY. For and in consideration of the covenants and agreements herein contained, to be kept and performed by HWPI, the City does hereby lease to HWPI the real property known and described as follows: approximately 1200 square feet of the south and west corner of the City Annex Building at 238 5th Avenue, Seward, Alaska (the "Leased Property "), for the term of this Lease. 2. TERM. The term of this Lease shall be five years beginning 201, and ending , 201_ (the "Initial Term "), and may be renewed at the sole option of the City for an additional five years. Thereafter, this Lease shall continue from month -to -month unless the City gives HWPI notice to terminate pursuant to this Lease not Tess than thirty days prior to termination. If this Lease is continued at the City's option as provided herein, all terms under this Lease shall continue to bind the Parties to this agreement. 3. RENT. INITIAL TERM. During the Initial Term, HWPI shall pay to the City as rent for the Leased Property the amount of $625.00 (Six Hundred Twenty -Five Dollars) each month, payable in advance on the first day of each calendar month. Monthly rent for any partial month shall be prorated at the rate of 1130th of the monthly rental per day. Alternatively, during the initial period, the parties may agree to an annual instead of a monthly payment, also payable in advance. 4. INSPECTION BY HWPI. HWPI shall inspect the Leased Property prior to signing this Lease. Unless HWPI within such period of time gives written notice to the City specifying any defect in or other proper objection to the Leased Property, HWPI agrees that it shall be conclusively presumed, as between the City and HWPI, that HWPI has fully inspected and acknowledged that the Leased Property is in good condition and repair, and that HWPI is satisfied with and has accepted the Leased Property in such , good condition and repair. 5. INSPECTION BY THE CITY. The City shall have the right to enter on the premises where the Leased Property may be located for the purpose of inspecting it or observing its use upon the giving of twenty -four hours advance written notice. Any inspection by the City shall occur only during business hours. 6. ALTERATIONS AND IMPROVEMENTS. HWPI, at its sole cost and expense, may make any and all alterations, additions, and improvements to the Leased Property, provided such alterations, additions, and improvements are approved by the City in advance. 7. TITLE TO IMPROVEMENTS BY HWPI. Any other provisions of this Lease to the contrary notwithstanding, HWPI, upon termination of this Lease for any reason, may, but need not, promptly remove, in no event later than thirty days from the termination of the Lease, trade fixtures and equipment from the Leased Property provided that HWPI shall repair any damages to the Leased Property caused by such removal. All additions to and improvements of the Leased Property of any kind not removed by HWPI upon termination of this Lease shall immediately become the property of the City. 8. MAINTENANCE. HWPI, at its own cost and expense, shall keep the Leased Property clean and undamaged, subject to normal non - abusive use. The City may promptly repair any damage not caused by the negligence or intentional misconduct of HWPI. 9. SIGNAGE. HWPI, with the consent of the City, may construct, install or maintain, or affix any sign, banner or like display identifying the Leased Property as a food bank to be placed upon the Leased Property in such manner as to be visible from the outside thereof. Any signage so displayed or affixed shall be removed upon the expiration or termination of this Lease. 10. INSURANCE. HWPI, at its own expense, will maintain the Leased Property insured for such risks and in such amounts as may be consistent with the City's risk management procedures. Upon request by the City, HWPI will deliver to the City evidence of all such insurance. 11. TAXES AND FEES. HWPI shall be responsible for any and all license fees, assessments, and sales, use, property, and other taxes, if any, now or in the future imposed on the Leased Property. 12. OWNERSHIP. The Leased Property is and shall at all times remain the sole property of the City, and HWPI shall have no right, title, or interest therein except as expressly set forth in this Lease. 13. SUSPENSION OF OBLIGATIONS OF THE CITY. The obligations of the City under this Lease shall be suspended, and shall not be considered an event of default, to Lease Agreement Page 2 of 6 the extent that the City is hindered or prevented from complying with those obligations because of Tabor disturbances, including strikes and lockouts, civil disturbance, blockade, insurrection, sabotage, riot, war, acts of enemies of the United States of America, acts of nature, epidemic, fires, storms, floods, earthquakes, tsunamis, accidents, governmental regulations, or any cause whatsoever beyond the control of the City. In such event, the time for the City to perform its obligations hereunder shall be extended by that amount of time necessary to compensate for the delay. 14. INDEMNITY. Except as caused by the City's negligence, HWPI will indemnify the City against, hold the City harmless from, and defend the City against all claims, actions, proceedings, costs, damages, and liabilities, including attorneys' fees, arising out of, connected with, or resulting from the Leased Property, including without limitation the manufacture, selection, delivery, possession, use, operation, or return of such the Leased Property. 15. DEFAULT. If HWPI fails to pay rent or any other sums to be paid by HWPI hereunder, or if a party fails to perform any obligation required by this Lease, the party alleged to be noncompliant shall have thirty days to cure after written notice is given by the other party to cure. A party shall not be in default if diligently pursuing a cure that cannot reasonably be completed within thirty days. If any default shall continue uncured following notice of default as required by the Lease, the non - defaulting party shall have the right to immediately terminate this Lease in addition to all other rights and remedies provided by law or equity, cumulatively or in the alternative. Upon immediate termination under this section, HWPI shall have thirty days to vacate the Leased Stir Property to allow the City to remove the same as required by Section 16 (Vacation and Removal of Leased Property) of this Lease. 16. VACATION OF LEASED PROPERTY. On expiration or termination of this Lease, with respect to the Leased Property, HWPI shall vacate the Leased Property to the City in good repair, subject to normal, non - abusive use, in the following manner: (A) HWPI shall be solely responsible for any and all damage caused by or to the Leased Property, except normal, non - abusive use. 17. EFFECT OF WAIVER. No delay or omission to exercise any right, power, or remedy under this Lease shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default. Any waiver, permit, consent, or approval of any kind or character of any breach or default under this Lease, or any waiver of any provision or condition of this Lease, must be in writing and be effective only to the extent in such writing specifically set forth. All remedies, either under this Lease or by law, or otherwise, shall be cumulative and not alternative. 18. ATTORNEY'S FEES. In the event of any legal action filed in relation to this Lease, each party shall bear its own legal fees and costs, including attorney's fees and expert witness costs. Lease Agreement Page 3 of 6 19. NOTICES. Any communications between the City and HWPI, payments, and notices provided herein to be given or made, may be given or made by mailing them to the City and HWPI at the following addresses: He Will Provide Inc. P.O. Box 3445 Seward, Alaska 99664 City of Seward Attn: City Clerk P.O. Box 167 Seward, Alaska 99664 (or to such other address as either party may indicate in writing to the other party.) 20. TERMINATION. Either party may terminate this Lease prior to the expiration of the Initial Term pursuant to the default provisions in this Lease. After the expiration of the Initial Term, the City has the right to terminate upon the giving of written notice to HWPI one full calendar month in advance of the date of intended termination. 21. TIME OF ESSENCE. Time is the essence of this agreement. 22. NO ASSIGNMENT. Neither this Lease nor any right or interest hereunder shall be assigned or transferred by HWPI in any respect whatsoever without the prior written consent of the City. 23. COMPUTATION OF TIME. The time in which any act provided by this Lease is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. 24. SUCCESSORS IN INTEREST. Each and all of the terms, covenants and conditions in this Lease shall inure to the benefit of and shall be binding upon the successors in interest of the City and HWPI. 25. ENTIRE AGREEMENT. This Lease contains the entire agreement of the Parties with respect to the matters covered by this Lease, and no other agreement, statement or promise made by any party which is not contained in this Lease shall be binding or valid. 26. GOVERNING LAW. This Lease shall be governed by, construed and enforced in accordance with the laws of the State of Alaska. The terms of this Lease are subject in all respects to the Charter and Code of Ordinances of the City in effect on the effective date of this Lease, and as they may be hereafter amended. 27. VENUE. Venue for any legal action arising out of or relating to this Lease shall be in the Superior Court for the State of Alaska, Third Judicial District at Anchorage, unless otherwise agreed to by the Parties. For purposes of this Lease, the City and HWPI consent to the personal jurisdiction of such court. Lease Agreement Page 4 of 6 1D 28. PARTIAL INVALIDITY. If any provision of this Lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 29. RELATIONSHIP OF PARTIES. Nothing contained in this Lease shall be deemed or construed by the Parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between the City and HWPI; and neither the method of computation of rent, nor any other provisions contained in this Lease nor any acts of the Parties, shall be deemed to create any relationship between the City and HWPI other than the relationship of lessee and lessor. 30. INTERPRETATION. The language in all parts of this Lease shall in all cases be simply construed according to its fair meaning and not for or against the City or HWPI as both the City and HWPI have had the opportunity to seek assistance of counsel in drafting and reviewing this Lease. 31. CAPTIONS. Captions of the articles, paragraphs and subparagraphs of this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Lease. 32. AMENDMENT. This Lease may not be amended except in writing executed by both Parties. 33. COUNTERPARTS. This Lease may be signed in counterparts. 34. EFFECTIVE DATE. This Lease shall be effective upon the date of execution by all Parties. If this Lease is signed in counterparts, the effective date shall be the date when the last party signs and delivers this Lease. 35. AUTHORITY. The City and HWPI each represent and warrant that each has the authority to enter into and perform this Lease, the Lease is valid and binding in accordance with its terms, and the persons executing this Lease on behalf of the City and HWPI are fully authorized to do so. [SIGNATURES ON NEXT PAGE] Noise Lease Agreement Page 5 of 6 1 1 Dated this day of 2013. Naiad CITY OF SEWARD HE WILL PROVIDE INC. ) Jim Hunt ; : - L_ __ City Manager ATTEST: Johanna Kinney, CMC City Clerk I. \Docs \43371001 \Leases \Lease Agreement with He Will Provide Inc docx NWid V eld Lease Agreement Page 6 of 6 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW LEASE WITH RAIBOW FIBERGLASS AND BOAT REPAIR, LLC FOR LOT 4, BLOCK 3 FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, PLAT NO. 97-27 SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is owner of real property described as Lot 4, Block 3 Fourth of July Creek Subdivision; and WHEREAS, this is vacant land identified in the Municipal Lands Management Plan as available for lease in the Seward Marine Industrial Center (SMIC); and WHEREAS, Raibow Fiberglass and Boat Repair, LLC submitted a proposal to lease Lot 4, Block 3 Fourth of July Creek Subdivision for a boat repair yard; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Sabo Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Council has determined that the essential terms and conditions and the method disposition of the proposed lease with Raibow Fiberglass and Boat Repair, LLC for the real property described as Lot 4, Block 3, Fourth of July Creek Subdivision located in the City of Seward, Alaska are in the public's interest. Section 2. The City Manager is authorized to execute a new lease with Raibow Fiberglass and Boat Repair, LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect thirty (30) days after its adoption and posting. Upon the effectiveness of this resolution, the lease will be effective August 1, 2013. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24`" day of June, 2013. Agenda Statement t Of s @19 Meeting Date: June 24, 2013 k I AT-' To: City Council , q� A K �� Through: City Manager Jim Hunt From: Harbormaster Mack Funk Agenda Item: Raibow Fiberglass and Boat Repair, LLC New lease at Lot 4, Block 3 Seward Marine Industrial Center BACKGROUND & JUSTIFICATION: Raibow Fiberglass and Boat Repair, LLC is owned by David Phillips. He has been operating a business on private leased land north of Seward Fisheries. He also does work on boats in the SMIC work yard and his business has grown to the point where he needs additional land. He has submitted a proposal to lease Lot 4, Block 3, Fourth of July Creek Subdivision within the industrial zoning district, Seward Marine Industrial Center, 3409 Jellison Avenue. The land will be used for boat repair work. The land is not served by utilities at this time. Eventually Mr. Phillips would like to construct a building on the site, but that will require future permitting. Mr. Phillips: Nerd a) Shall also comply with all Seward City Code requirements b) Has personally guaranteed the lease (Exhibit B) c) Has submitted an acceptable environmental compliance plan (Exhibit C) INTENT: To approve a long -term lease between the City of Seward and Raibow Fiberglass and Boat Repair, LLC on Lot 4, Block 3 Fourth of July Creek Subdivision at the Seward Marine Industrial Center for boat repair operations. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan X goals to develop SMIC as a major industrial area of the community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse X resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other (list): Ned FISCAL NOTE: The annual lease amount is $2000.00 plus tax. The lease rate is based on 8% of the fair market value ($25,000). The parcel was appraised by MacSwain Appraisals, LLC dated March 12, 2010. The leased property will be re- appraised every five years (next scheduled for 2015) and the rent will be adjusted accordingly. Between appraisals, the rent will be adjusted each year according to the Consumer Price Index (CPI). Approved by Finance Department: . L / f • ATTORNEY REVIEW: Yes No RECOMMENDATION: Approve Resolution 2013- O\ the City Manager to enter into a Lease with Raibow Fiberglass and Boat Repair, LLC for Lot 4, Block 3 Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 97 -27 in the Seward Recording District, Third Judicial District, State of Alaska. 1�� LEASE AGREEMENT between CITY OF SEWARD, ALASKA and RAIB OW FIBERGLASS AND BOAT REPAIR LLC Effective Date: [August 1, 2013] 16 TABLE OF CONTENTS ARTICLE 1 - LEASED LAND 1 1.1 Description of Leased Land 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title 1 1.3 Reserved 1 1.4 Property Accepted 2 1.5 Permits 2 1.6 Platting 2 ARTICLE 2 - LEASE TERM 2 2.1 Lease Term 2 ARTICLE 3 - RENTAL RATE 3 3.1 Initial Rental Rate 3 3.2 Rental Adjustments 3 3.3 Procedure for Rental Adjustment 3 3.4 Effect of Late Appraisal by CITY 4 3.5 Appraisal by LESSEE 4 3.6 Effective Date of Adjusted Rental Rate 4 3.7 Interim Rental Adjustments 5 3.8 Late Payment Charge 5 ARTICLE 4 - USE OF LEASED LAND 5 4.1 Use of Leased Land 5 4.2 'Obligations of LESSEE 5 4.3 No Preferential Rights to Use Public Facilities 6 4.4 Adequacy of Public Facilities 6 4.5 Tariffs and Other Service Fees 6 4.6 Time for Payment of Utilities and Taxes 6 4.7 Other Uses 6 ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 7 5.1 Utilities 7 5.2 Third -Party Improvements 7 5.3 Easements 8 ARTICLE 6 - CONSTRUCTION BY LESSEE 8 6.1 Improvements on Leased Land 8 6.2 City Review of Construction 9 ARTICLE 7 - RETURN OF LEASED LAND /SITE CONDITIONS 10 7.1 Return of Leased Land in Original Condition 10 ARTICLE 8 - FORCE MAJEURE 10 ARTICLE 9 - LESSEE'S ACTS OF DEFAULT 10 ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE 11 ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13 11.1 Real Property Improvements 13 11.2 Personal Property 13 Sow, ARTICLE 12 - ASSIGNMENT OR SUBLEASE 13 12.1 Assignment of Lease or Subleasing 13 12.2 Assignment of Lease for Security 13 12.3 Assignment to Affiliate 14 ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY 14 ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY 14 ARTICLE 15 - INSURANCE 14 15.1 Minimum Insurance Requirements 14 15.2 Subrogation Rights Waived 15 ARTICLE 16 - CONDEMNATION 16 ARTICLE 17 - ARBITRATION 16 17.1 Arbitration 16 ARTICLE 18 - MAINTENANCE AND REPAIRS 18 18.1 Normal Maintenance 18 18.2 Safety Issues 18 18.3 Cost of Repairs 18 ARTICLE 19 - ENVIRONMENTAL CONCERNS 19 19.1 Hazardous Materials 19 19.2 Permits and Reporting 21 ARTICLE 20 - ESTOPPEL CERTIFICATES 21 ARTICLE 21 - CONDITIONS AND COVENANTS 22 ARTICLE 22 - NO WAIVER OF BREACH 22 ARTICLE 23 - TIME OF THE ESSENCE 22 ARTICLE 24 - COMPUTATION OF TIME 22 ARTICLE 25 - SUCCESSORS IN INTEREST 22 ARTICLE 26 - ENTIRE AGREEMENT 22 ARTICLE 27 - GOVERNING LAW 23 ARTICLE 28 - PARTIAL INVALIDITY 23 ARTICLE 29 - RELATIONSHIP OF PARTIES 23 ARTICLE 30 - INTERPRETATION 23 ARTICLE 31 - CAPTIONS 23 ARTICLE 32 - AMENDMENT 23 ARTICLE 33 - NOTICES 23 ARTICLE 34 - FIRE PROTECTION 24 Exhibit A - Map of Parcel Exhibit B - Personal Guarantee Exhibit C - Environmental Compliance Plan Naid ii 1� LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE ") is made by and between the CITY OF SEWARD (the "CITY "), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and Raibow Fiberglass and Boat Repair LLC (the "LESSEE "), an Alaska limited liability company whose mailing address is P.O. Box 2891, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as Lot 4, Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -27 recorded in the Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 13,521 square feet, more or less; and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below) to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: ARTICLE 1 - LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: Lot 4, Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -27 recorded in the Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 13,521 square feet, more or less. The Leased Land is also depicted on the attached Exhibit A, which is incorporated herein by reference. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Reserved. 'Ili'.' 1 1°\ 1.4 Property Accepted "As-is." LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as -is" and without reliance on any expressed or implied representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.5 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications, and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re- zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules, or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right -of -way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description in Section 1.3. If LESSEE requests a replat of the Leased Land prior to that time, CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY -owned real property adjacent to the Leased Land. ARTICLE 2 - LEASE TERM Lease Term. The term of this LEASE (the "Lease Term ") shall be in accordance with CITY's authorization in Resolution No. 2013- (the "Resolution "). The Lease Term shall commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE (the "Effective Date "). The Lease Term shall run for approximately 20 years 2 ao from the Effective Date, ending at midnight on July 31, 2033. LESSEE shall have the right to extend the term of this LEASE for two additional five (5) year periods, provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; and c) LESSEE shall exercise its options to extend by sending written notice in accordance with the provisions of Article 33 of this LEASE. ARTICLE 3 - RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2014, the annual rental rate for the Leased Land shall be set at $2000.00. Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one - quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2015, and on the same date every five years thereafter (each a "Rental Adjustment Date "). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value ") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety (90) days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY (including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) ' o .• 3 at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent (20 %), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent (20 %), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If, for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make Ned an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE's appraisal by no more than twenty percent (20 %), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than twenty percent (20 %), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the 4 a?\ appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1, 2014 and on July 1 of every year thereafter (each on "Interim Rental Adjustment Date ") in an amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967 =100 ( "CPI "), as published by the United States Department of Labor, Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion, to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of $2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for Boat repair work. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. 5 b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall operate a boat repair and fiberglass business on the Leased Land. e) Any changes to this site require prior CITY approval, through the City Manager. 4.3 No Preferential Rights to Use Public Facilities'. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any , information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations, and scheduled fees from time to time, even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space, including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. 6 ' ack ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public right -of -ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third -Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions, and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third -party improvements "), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject, however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing 7 instances referred to in this Section, CITY shall be without expense therefor, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third -party improvements on the Leased Land other than portable equipment shall become the property of C1TY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable, or required that street, railroad, water, sewer, drainage, gas, power line, and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities, and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or Nerd rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 - CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build, and /or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or, of any changes, alterations, or improvements, shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights -of -ways or easements. On completion of any improvements, LESSEE 8 shall provide CITY a copy of an as- built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest, a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). CITY may, as contemplated by Alaska Statutes, give notice of non - responsibility for any improvements constructed or effected by LESSEE on the Leased Land. r g) LESSEE shall comply with all federal, state, and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building, mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CTTY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights -of -way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. 9 ARTICLE 7 - RETURN OF LEASED LAND /SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non - abusive use. The Leased Land shall be free of all Hazardous Materials and Contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE 8 - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake /tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 - LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: vmvird 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect 10 which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption, or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. *Ire ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law, or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601 -.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re -enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 44 41P 0 ' 11 10.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. Nod 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such or power or shall be construed to be a waiver thereof, but any such 12 20 right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 - ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ( "Lender ") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to '101•'" 13 �1. do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser, or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of 'N the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death, and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15 - INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage 14 lc), under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000) is also required. LESSEE shall obtain owned and non -owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers, and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone clairning through or under LESSEE by way of subrogation or otherwise, for any Loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY, its elected or appointed officials, employees or volunteers, or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and LESSEE's policies of insurance shall contain a clause or 'Soap. 15 3� endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers, and others working on behalf of CITY) during the time of LESSEE's occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. ARTICLE 16 - CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such Nerd notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts, and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17 - ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 et. se q.), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than FIFTY THOUSAND DOLLARS ($50,000) (exclusive of interest and costs). All demands 16 3L'V for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than FIFTY THOUSAND DOLLARS ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim, dispute, or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than FIFTY THOUSAND DOLLARS ($50,000). The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorneys fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less than five (5) years legal experience in the State of Alaska prior to lika,,, appointment; and (b) such legal experience includes substantial experience with long- term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to Lead to relevant information. e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. /4111"' 17 ARTICLE 18 - MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non - abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution, and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well - versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk, and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or 18 improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19 - ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the S Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal, or restoration mandated by a federal, state, or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept, or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored, and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) LESSEE shall not discharge, leak, or emit, or permit to be discharged, leaked, or emitted, any material into the atmosphere, ground, ground water, sewer system, or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate 'timer 19 Z1 the same, or may adversely affect the (a) health, welfare, or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition, use, or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage, and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney, consultant and expert fees, court costs, and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release, or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals, or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Material or any use of the Leased Land; and /or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (1) occur prior to or during the term of this LEASE; and (2) arise, in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants, or any other persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. 20 'r.100 f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste, hazardous waste, extremely hazardous waste, or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material, and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state, or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies of all reports between LESSEE and any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 - ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if ‘04..► 21 there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof), and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 21 - CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22 - NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant, or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant, and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 - TIME OF THE ESSENCE ied Time is of the essence of this LEASE and of each provision. ARTICLE 24 - COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a holiday, and then it is also excluded. ARTICLE 25 - SUCCESSORS IN INTEREST Each and all of the terms, covenants, and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 - ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement, or promise made by any party which is not contained in this LEASE shall be binding or valid. 22 Neif ARTICLE 27 - GOVERNING LAW This LEASE shall be governed by, construed, and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including, without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 28 - PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29 - RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE, nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. .e ARTICLE 30 - INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 - CAPTIONS Captions of the articles, paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 - AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 - NOTICES All notices, demands, or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. So "" 23 All notices, demands, and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Raibow Fiberglass and Boat Repair LLC P.O. Box 2891 Seward, Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34 - FIRE PROTECTION LESSEE shall, at its sole cost, risk, and expense, provide fire detection and protection to its Ned operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field of fire prevention and control LESSEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five (5) years. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD RAIBOW FIBERGLASS AND BOAT •IRL C Jim Hunt, City Manager Davi. Phillips, Member Date: Date: .-2 1 3 24 Nid L.ON likaw ATTEST: Johanna Kinney, CMC City Clerk STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2013, by Jim Hunt, City Manager of the City of Seward, Alaska, on behalf of the City. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) Slow ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this A\ day of , 2013, by David Phillips who executed the foregoing document on behalf of Raibow Fiberglas and Boat Repair LLC as Member of the limited liability company. 4 4:k. Ct /c � y .. y Notary ublic in nd for Ala a ; My Commission Expires: a- .,� -o1i . N®T Y PUBLIC 04;4"iiP `/ /Ill ! l l i t l l l\ �� '4hr 25 V g N00'34'12 "W 254.89' z (N0034'13 "W 255.002 4 5 N 1 Exhibit A _ ______ r 72.7,S ter- 'aC ° '' Lease �`' Raibow Fiberglass and Boat Repair LLC 'Q and Cit of Seward 3 N N Ni fri O O Li M o . N q ' 1. b W (r) R n to Q (I) 0) SN i D CQ J ti Nail NOTES 60.00' )ng Rights of Ways and Access Easements, 2 o 0 1 each side of other lot lines within to to 1 is reserved as a utility easement. rn rn oo structure may be constructed or placed c °0 n (1) easement which would interfere with the tility to use the easement. s subdivision may be located within a od hazard area; if such is the case, nust comply with Title 15 of the City tarter and Code of Laws. A survey to oa Q elevation of the property may be _ �, to construction, 0.) a service road access and utility ;cess restricted to Lessees, City of other authorized personnel. 1 )n is subject to the City of Seward's luilding Code regulations. (NO036'07 "W 255.002 0 S 0O35'48 "E 254.89' O y Q .. v O Q, CO L , A e- ' , 1 r1 \ V 1 o TO /1 (' T A L"\Ck 'Nip, Exhibit B PERSONAL GUARANTEE To induce the City of Seward, P.O. Box 167, Seward, AK 99664 ( "City ") to enter into a Lease Agreement with Raibow Fiberglass and Boat Repair, LLC, P.O. Box 2891, Seward, AK 99664 ( "Raibow ") effective August 1, 2013, the undersigned personally guarantees payment of all obligations of Alaska Logistics as described in the Lease Agreement. The Lease Agreement covers the following real property: Lot 4, Block 3, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -108 recorded in the Seward Recording District, Third Judicial District, State of Alaska, containing approximately 13,521 square feet, more or less. I agree to provide the City with written notification of any changes in my address, and acknowledge that any notice required to be given by the City will be effective if mailed to the address shown below or such changed address on file with the City. My guarantee is absolute and unconditional. Upon default of Raibow under the Lease Agreement, I agree to immediately become liable for Raibow's obligations. The New City need not seek performance, payment, and collection from Trust before seeking payment from me. If more than one person guarantees payment, I agree to be jointly and severally liable with all other guarantors for payment. - Dated this (1- 24 5 of , 2013. Signed in my individual capacity as guarantor: II Dav 'hillips is- Exhibit C ENVIRONMENTAL COMPLIANCE PLAN Nod Honesty and Integrity RAIBOW FIBERGLASS & BOAT REPAIR, LLC PO Box 2891 Seward , Alaska 99664 . raibowboat @gmail.com To: City of Seward: Raibow Fiberglass and Boat Repair LLC., plans to and will comply with all federal, state and city of Seward environmental regulations that apply to its' operation of a storage and vessel repair facility on property leased from the city of Seward. Raibow Fiberglass will monitor storm water runoff into existing ditches and will maintain clean water runoff from leased site. Raibow Fiberglass has no immediate plans to store or use barrels of oil or fiberglass materials on leased property but will maintain a clean and orderly storage yard. Raibow Fiberglass will not store any fuel barrels on leased property. Raibow Fiberglass may do bottom painting on vessels in leased yard and will lay down appropriate ground cover while sanding and painting and dispose of it in compliance with city of Seward regulations. Any and all spills will be immediately cleaned up. All paint cans will be stored off site at Raibows' main yard and all empty buckets will be returned to Raibows main yard and disposed of properly. Raibow Fiberglass plans to continue to upgrade and add to its' leased property and will assure the city of Seward that the property will be maintained responsibly during the terms of the lease. Sincerely, David Phillips /Owner (907) 821 -8015 ( ( POR. SEC. 13, T01 S RO1 W & SEC. 18, TO1S RO1 E, S.M. 145-340 A 7 '' � rs > OF U.S.S. 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SQRjj61.RP. , - -. } BK ' JANUARY 2. 20a' w 189 t 0.7 I i For 2007 assessment roll t i FOURTH OF JULY CREEK SUBOSEWARD MARINE INDUSTRIAL CENTERJSW0970027 N I Delete Add Revise I FOURTH OF JULY CREEK SUB SEWARD MARINEOINDUSTR CENTER COMMUNICATIONS NORTH ADDNOSW0000006 T alt is prepared TC FOU RTH OF JULY CREEK SUBOSEWARD MARINE INDUSTRIAL CENTER AN NUMBER ONEOSW2001002 for Kenn, Peninsula y DO Co oUgh Assessing Dept W + W2 E 1 FOURTH OF JULY CREEK SUBOSEWARD MARINE INDUSTRIAL CENTER SEWARD SHIP'S DRYDOCK REPEAT S002022 use only and Is not i � 111V(((j 37,38.48 50-52 FOURTH OF JULY CREEKSUBnSEWARD MARINE INDUSTRIAL CENTER SEWARD POLAR SEAFOOD REPLATSW2008023 Intended ioroo oevance 8 t Assessors map rKK is II aBUlYhI. } Kenai Paninsuia SONWh I' Ate -Assessorst tli Numbers &towI In Fipsei f Assessor's Pwaa! Numbers Shawn in ardee I- . .. ._. .-_- ... ._ _ ., MacSwain Associates LLC Subject Property Data, Analysis, & Valuation: Parcel 7 Location: East of Nash Road, btwn. Jellison Avenue and Mustang Avenue, SMIC Property Identification Legal Description: Lot 4, Block 3, 4`�' of July Creek Subdivision, SMIC Current Use: Vacant Subject Property, a Photograph N .1 ,4 ry x% ,,-, .5..e. ? `.. • . `mow^ w „r 4 ` tip :`' .. - ` }. r t .b,, z" !.....,,,� Inspection Data Date Inspected: May 11, 2011 Inspected By: Steve MacSwain, MAI Sale History No known sales in past three years. Site Description Site Size /Shape: 13,504 SF / rectangular Access /Street Improvements: Jellison Avenue, Olga Street (both gravel} 11 -2199: Ten (10) City of Seward Parcels, Seward, Alaska 43 1 � MacSwain Associates LLCI Utilities: Public Water: City of Seward Public Sewer: City of Seward* Electricity: Seward Public Utilities, power lines in vicinity Telephone: TelAlaska Topography: Level Easements and Restrictions: None noted Other Features: None Zoning: Industrial (I) Parking: On site required Assessor No: 145- 340 -24 Assessment Data 2010 Mill Rate: 8.12 2011 Assessment Value: Land Building Total $33,800 $0 $33,800 ($2.50 /SF) * Public sewer in vicinity, however, the feasibility /cost to hook up unknown until engineering is completed. ir.. 11-2199: Ten (10) City of Seward Parcels, Seward, Alaska 44 L9 ter. MacSwain Associates LLCL Market Analysis and From the market data discussed in Chapter 6, we have selected the Property Valuation following comparables as being the best data available. Table of Comparables Compared to Parcel 7 No Location Sale Date Sale Price Size (SF) Price /SF 8 SW of Seward Hwy. and 2005 — Varies 20,000 — $2.50 — Port Ave., Leirer Subd. 2010 80,000 $3.25 9 NWC of Sorrel Rd. and 7/10 $500,000 99,319 $5.03 Nash Rd., SMIC t i B. Side of Nash Road, 3/04 $23,000 23,035 $1.00 SMIC Lot 4, Block 3, SMIC N/A N/A 13,504 N/A Comparative Land Comparable No. 8 is located just north of the Seward Small Boat Value Analysis Harbor in an industrial neighborhood known as Leirer Subdivision. This subdivision consists of 30± individual leased sites reflecting fee values in the $2.50 to $3.25 per square foot range. Those comparables are rated superior due to location. Comparable No. 9 involves the lease of a fish processing plant parcel on the SMIC Harbor. Thus, water - frontage enhances its utility. Ai downward adjustment is necessary for location and harbor frontage. Therefore, this comparable is rated superior. Comparable No. 11 is an older land sale in SMIC by the City of Seward to its lessee. We adjust these sales upward for inferior location and market conditions (2004 sale). In comparison, we rate this comparable is rated inferior. Land Value Based on the preceding discussion and a review of the other Conclusion comparables, the market value is estimated to be $1.75 to $2.00 per square foot, 13,504 SF at $1.75 /SF = $23,632 13,504 SF at $2.00 /SF = $27,008 Land Value $25,000 11 -2199: Ten (10) City of Seward Parcels, Seward, Alaska 45 SO e Sponsored by: Planning and Zoning Commission Introduction Date: June 24, 2013 Public Hearing Date: July 8, 2013 Enactment Date: July 8, 2013 CITY OF SEWARD, ALASKA ORDINANCE 2013 -010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE 15.25. FLOODPLAIN MANAGEMENT TO ADOPT THE DIGITAL FLOODPLAIN RATE MAPS (DFIRM) AND THE FLOOD INSURANCE STUDY (FIS) DATED SEPTEMBER 27, 2013 AS ESTABLISHED BY FEMA AND UPDATE PORTIONS OF CHAPTER 15.25 TO MINIMUM FEMA REQUIREMENTS WHEREAS, City Council adopted Ordinance 98 -11 in November 1998, establishing Chapter 1525 Floodplain Management of the Seward City Code; and WHEREAS, City Council adopted Resolution 98 -127 authorizing the participation in the National Flood Insurance Program (NFIP); and 4 0010' WHEREAS, the Federal Emergency Management Administration (FEMA) has worked to digitize the local 1981 Floodplain Rate Maps (FIRM) and update the Flood Insurance Study (FIS) since January 2006; and WHEREAS, both the City of Seward and Seward Bear Creek Flood Service Area (SBCFSA) have held numerous public meetings and work sessions in discussion and review of the DFIRMs; and WHEREAS, the Federal Insurance Administration issued the letter of final determination on March 27, 2013, thereby, setting a mandatory six -month adoption date of September 27, 2013; and WHEREAS, Chapter 15.25 Floodplain Management, of the Seward City Code has not been updated since it was established in 1998; and WHEREAS, with the Federal Insurance Administration, September 27, 2013 DFIRM adoption, Seward City Code requires updating to remain eligible for the National Flood Insurance Program; and WHEREAS, at its June 4, 2013 meeting, the Planning and Zoning Commission held a public hearing and recommended City Council approval of the proposed City Code amendments, including the adoption of the DFIRMs and the FIS dated September 27, 2013. err 51 CITY OF SEWARD, ALASKA ORDINANCE 2013 -010 NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code is hereby amended as follows: Chapter 15.25 is hereby amended as follows: (Deletions are Bold Strikethroughs; Additions are Bold Underline) 15.25.020. - Definitions Development means any manmade change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations or storage of equipment or materials (note: add this per 44 CFR 59.1) located within the area of special flood hazard. Floodplain or flood -prone means any land area susceptible to being inundated by water from any source (see definition of "flooding "). Flood or flooding means a general and temporary condition of partial or complete inundation of normally dry land areas from either the overflow of inland or tidal waters and /or the unusual and rapid accumulation of or runoff of surface waters from any source. Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged conditions would equal or exceed 50 percent of the market value of the structure before the damage occurred. (note: add this per 44 CFR 59.1) 15.25.030. - General provisions * ** (b) Basis for establishing flood hazard areas. - ... • • • • • • • - . . . • .. . • , , , • . , • • • . • • , • ' f 1 . • f 1 • • • . . . . . • .. • • „ . . . • a s ; . • • • • • • • . _ (note: remove and replace with required language 44 CFR 60.3,c,d,e) The areas of special flood hazard identified by the Federal Insurance Administration in a scientific and engineering report entitled "The Flood Insurance Study (FIS) for the Kenai Peninsula Borough, Alaska and Incorporated Areas (City of Seward), dated September 27, 2013, with accompanying Flood Insurance Rate Map (FIRM) are hereby adopted by reference and declared to be a part of this ordinance. The Flood Insurance CITY OF SEWARD, ALASKA ORDINANCE 2013 -010 Study (FIS) and Flood Insurance Rate Map (FIRM) are on file at the Community Development Office. 15.25.050. - Provisions for flood hazard reduction (A.) General standards. In all flood hazard areas, the following standards are required. * ** (4) Subdivision proposals d. Where base flood elevation data has not been provided or is not available from another authoritative source, it shall be generated for, and included in., subdivision proposals which contain greater than 50 lots or five acres, or- greater whichever is less (note: remove and replace with required language 44 CFR 60.3(6) (3)) * ** (B) Specific standards. In all flood hazard areas where base flood elevation likki, data has been provided as set forth in section 15.25.030(b), the following provisions are required: (1) Residential construction * ** c. For zones AH and AO, drainage paths are required around structures on slopes to drain floodwaters away from proposed structures. (note: add this per 44 CFR 60.3 (c) (11)) (2) Nonresidential construction * ** f. For zones AH and AO, drainage paths are required around structures on slopes to drain floodwaters away from proposed structures. (note: add this per 60.3 (c) (11)) (3) Manufactured homes a. All manufactured homes to be placed or substantially improved within zones A1-30, AH and AE shall be elevated on a '041.0- permanent foundation such that the lowest floor of the 53 CITY OF SEWARD, ALASKA ORDINANCE 2013 -010 manufactured home is at or above the base flood elevation and be securely anchored to an adequately anchored foundation system in accordance with the provisions of 15.25.050(a)(1)b. b. When in an existing manufactured home park, for any new or substantially improved manufactured home its chassis shall be supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches above grade and be securely anchored so as to resist flotation, collapse, and lateral movement. (note: add this per 60.3 (c) (12)) (4) Recreational Vehicles. For any recreational vehicle placed on sites within Zones Al — A30, AH, and AE, it must be on site less than 180 consecutive days, or be fully licensed and ready for highway use or meet the requirements of section 15.25.050 (A)(1) through (5) and section 15.25.050 (B)(1) through (3). A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and has no permanently attached additions. (note: add this per 60.3 (c) (14)) * ** (D) Coastal high hazard areas * ** (4) The use of fill for structural support of buildings within Zones VE V1-V30 V on the FIRM is prohibited. (note: add this per 60.3 (e) (6)) (5) For any recreational vehicle placed on sites within Zones V1— V30, V, and VE, it must be on the site less than 180 consecutive days, or be fully licensed and ready for highway use, or meet the requirements of section 15.25.050 (A)(1) through (5) and section 15.25.050 (B)(1) through (3). A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and has no permanently attached additions. (note: add this per 60.3 (e) (9)) Section 2. This ordinance shall take effect ten (10) days following enactment. Nod 5y CITY OF SEWARD, ALASKA ORDINANCE 2013 -010 ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 8"' day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk itor (City Seal) 4. Agenda Statement 4o s tss4 Meeting Date: June 24. 2013 �► ;� To: City Council �� 4 * Through: Jim Hunt, City Manage f Through: Ron Long, Assistant City Manager ( From: Donna Glenz, Planner / ,�" Q VV Agenda Item: City Council amend Seward City Code 15.25. Floodplain Management to Adopt the Digital Flood Insurance Rate Maps (DFIRM) and the Flood Insurance Study (FIS) Dated September 27, 2013 BACKGROUND & JUSTIFICATION: In January 2006 the Federal Emergency Management Administration (FEMA) started work to modernize the 1981 Flood Insurance Rate Maps (FIRM) and the Flood Insurance Study (FIS). Since that time City staff and the Seward Bear Creek Flood Service Area Board (SBCFSA) have held numerous meetings and teleconferences with FEMA regarding the program to modernize the flood ' maps by digitizing the old 1981 maps. While it is well known that the 1981 FIRMs needed to be corrected and the Seward flood area re- studied and remapped; the federal government did not fund such a program. What was funded was the modernization of the 1981 FIRMS by digitizing them. There were some updates done such as adding the area of Fourth of July Creek and a few minor corrections made. In November of 1998 City Council adopted Ordinance 98 -11 establishing Chapter 15.25 Floodplain Management of the Seward City Code. City Council also adopted Resolution 98 -127 authorizing the participation in the National Flood Insurance Program (NFIP). Since 1998 the City has been managing the floodplain based on the 1981 FIRMs. On March 27, 2013 the Federal Insurance Administration issued the letter of final determination on the DFIRMs. Once the letter of final determination has been issued the City has six (6) months to officially adopt the maps. If the City were to choose to not adopt the maps the City would be removed from the NFIP and become ineligible for flood related federal funding. Over the past 15 years the Federal Insurance Administration has issued changes to the minimum code compliance requirements. The City has made no updates or amendments to the City Code Chapterl5.25 Floodplain Management since the original adoption in 1998. Therefore, in addition to formally adopting the new DFIRMs, the following Code changes are necessary in order to remain eligible for the National Flood Insurance Program. ,,i Specific additions, deletions or changes are as follows: (Deletions are Bold; Additions are Bold Underline) 15.25.020. - Definitions Development means any manmade change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations or storage of equipment or materials (note: add this per 44 CFR 59.1) located within the area of special flood hazard. Floodplain or flood -prone means any land area susceptible to being inundated by water from any source (see definition of "flooding "). Flood or flooding means a general and temporary condition of partial or complete inundation of normally dry land areas from either the overflow of inland or tidal waters and /or the unusual and rapid accumulation of or runoff of surface waters from any source. Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged conditions would equal or exceed 50 percent of the market value of the structure before the damage occurred. (note: add this per 44 CFR 59.1) 15.25.030. - General provisions * ** (b) Basis for establishing flood hazard areas. - . • . . • • • • • • • • • . • 1 • . • • • • • • , , I • 1 ; . • 1 • • • - • • .. • • , • • • • .. • . • . .. • .. . .. . ... • . ••• • • • • • • • • . . (note: remove and replace with required language 44 CFR 60.3,c,d,e) The areas of special flood hazard identified by the Federal Insurance Administration in a scientific and engineering report entitled "The Flood Insurance Study (FIS) for the Kenai Peninsula Borough, Alaska and Incorporated Areas (City of Seward), dated September 27, 2013, with accompanying Flood Insurance Rate Map (FIRM) are hereby adopted by reference and declared to be a part of this ordinance. The Flood Insurance Study (FIS) and Flood Insurance Rate Map (FIRM) are on file at the Community Development Office. 15.25.050. - Provisions for flood hazard reduction (A.) General standards. In all flood hazard areas, the following standards are '�,., required. * ** (4) Subdivision proposals * ** d. Where base flood elevation data has not been provided or is not available from another authoritative source, it shall be generated for, and included in subdivision proposals which contain greater than 50 lots or five acres, er- greater whichever is less (note: remove and replace with required language 44 CFR 60.3(b) (3)) * ** (B) Specific standards. In all flood hazard areas where base flood elevation data has been provided as set forth in section 15.25.030(b), the following provisions are required: (1) Residential construction * ** c. For zones AH and AO, drainage paths are required around structures on slopes to drain floodwaters away from proposed structures. (note: add this per 44 CFR 60.3 (c) (11)) (2) Nonresidential construction * ** f. For zones AH and AO, drainage paths are required around structures on slopes to drain floodwaters away from proposed structures. (note: add this per 60.3 (c) (11)) (3) Manufactured homes a. All manufactured homes to be placed or substantially improved within zones A1-30, AH and AE shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is at or above the base flood elevation and be securely anchored to an adequately anchored foundation system in accordance with the provisions of 15.25.050(a)(1)b. b. When in an existing manufactured home park, for any new or substantially improved manufactured home its chassis shall be supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches above grade and be securely anchored so as to resist flotation, collapse, and lateral movement. (note: add this per 60.3 (c) ( (4) Recreational Vehicles. For any recreational vehicle placed on sites within Zones Al — A30, AH, and AE, it must be on site less than 180 consecutive days, or be fully licensed and ready for highway use, or meet the requirements of section 15.25.050 (A)(1) through (5) and section 15.25.050 (B)(1) through (3). A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and has no permanently attached additions. (note: add this per 60.3 (c) (14)) * ** (D) Coastal high hazard areas * ** (4) The use of fill for structural support of buildings within Zones VE V1-V30 V on the FIRM is prohibited. (note: add this per 60.3 (e) (6)) * Itior (5) For any recreational vehicle placed on sites within Zones V1 —V30 V, and VE, it must be on the site less than 180 consecutive days, or be fully licensed and ready for highway use, or meet the requirements of section 15.25.050 (A)(1) through (5) and section 15.25.050 (B)(1) through (3). A recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and has no permanently attached additions. (note: add this per 60.3 (e) (9)) CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan 3.7.3 Continue to improve the quality and efficiency of city governmental 1. services. X Bullet 1 - Continue to review and update of the Seward City Code. (page 27) As per Seward City Code the Planning and Zoning Commission held a public hearing and approved P &Z Resolution 2013 -12, at their June 4, 2013 meeting, recommending City Council approved the attached Ordinance, amending Seward City Floodplain Code 15,25 and adopting the Digital Flood Scl Amor Insurance Rate Maps. Ned INTENT: Adopt the Digital Floodplain Rate Maps (DFIRM) and the Flood Insurance Study (FIS) Dated September 27, 2013 and update the SCC 15.25 to minimum FEMA standards. FISCAL NOTE: Implementation of the new floodplain ordinance may not have an immediate or direct cost to the City; it could have a material impact to City, local businesses and individuals who are determined to be in a Special Flood Hazard Area. Approved by Finance Department: �..,.,� i ATTORNEY REVIEW: Yes X No RECOMMENDATION: Staff and the Planning and Zoning Commission recommend the Council introduce and enact Ordinance 2013- Q in , amending Seward City Code 15.25 Floodplain Management. 60 eCFR — Code of Federal Regulations Page 1 of 1 • ELECTRONIC CODE OF FEDERAL REGULATIONS e -CFR Data is current as of May 28, 2013 Title 44: Emergency Management and Assistance PART 59—GENERAL PROVISIONS Subpart A— General § 59.2 Description of program. (a) The National Flood insurance Act of 1968 was enacted by title XII1 of the Housing and Urban Development Act of 1968 (Pub. L. 90 -448, August 1, 1968) to provide previously unavailable flood insurance protection to property owners in flood -prone areas. Mudslide (as defined in § 59.1) protection was added to the Program by the Housing and Urban Development Act of 1969 (Pub. L. 91- 152, December 24, 1969). Flood- related erosion (as defined in § 59.1) protection was added to the Program by the Flood Disaster Protection Act of 1973 (Pub. L. 93 -234, December 31, 1973), The Flood Disaster Protection Act of 1973 requires the purchase of flood insurance on and after March 2, 1974, as a condition of receiving any form of Federal or federally- related financial assistance for acquisition or construction purposes with respect to insurable buildings and mobile homes within an identified special flood, mudslide (Le., mudflow), or flood - related erosion hazard area that is located within any community participating in the Program. The Act also requires that on and after July 1, 1975, or one year after a community has been formally notified by the Federal Insurance Administrator. of its identification as community containing one or more special flood, mudslide (i.e., mudflow), or flood - related erosion hazard areas, no such Federal financial assistance, shall be provided within such an area unless the community in which the area is located is then participating in the Program, subject to certain exceptions. See FIA published Guidelines at § 59.4(c). (b) To qualify for the sale of federally- subsidized flood insurance a community must adopt and submit to the Federal Insurance Administrator. as part of its application, flood plain management ) \, regulations, satisfying at a minimum the criteria set forth at part 60 of this subchapter, designed to / f reduce or avoid future flood, mudslide (Le., mudflow) or flood - related erosion damages. These regulations must include effective enforcement provisions. (c) Minimum requirements for adequate flood plain management regulations are set forth in § 60.3 • for flood -prone areas, in § 60.4 for mudslide (i.e., mudflow) areas and in § 60.5 for flood - related ; erosion areas. Those applicable requirements and standards are based on the amount of technical information available to the community. [41 FR 46968, Oct. 26, 1976, as amended at 43 FR 7140, Feb. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, and amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984] For questions or comments regarding e-CFR editorial content, features, or design, email ecfr @nara.gov. For questions concerning e-CFR programming and delivery issues, email webteam©gpo.gov. 14 ?a4 1i 2fnS2Q525t1a473F.R ,a1]n G /'r /'7ni Sponsored by: Staff CITY OF SEWARD, ALASKA PLANNING AND ZONING COMMISSION RESOLUTION 201342 A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF SEWARD, ALASKA, RECOMMENDING CITY COUNCIL AMEND PORTIONS OF SEWARD CITY CODE 15.25 FLOODPLAIN MANAGEMENT TO ADOPT THE SEPTEMBER 27, 201.3 DIGITAL FLOODPLAIN RATE MAPS AS ESTABLISHED BY FEMA AND UPDATE PORTIONS OF TITLE 15.25 TO MINIMUM FEMA REQUIREMENTS WHEREAS, City Council adopted Ordinance 98 -11 in November 1998, establishing Title 15.25 Floodplain Management of the Seward City Code; and WHEREAS, City Council adopted Resolution 98 -127 authorizing the participation in the National Flood Insurance Program (NFIP); and WHEREAS, the Federal Insurance Administration has provided Digital Flood Insurance Rate Maps (DFIRM) and the Federal Insurance Study (F1S) affective September 27, 2013; and WHEREAS, both the City of Seward and the Seward Bear Creek Flood Service Area (SBCFSA) have held several public meetings and work sessions in review of the DFIRMs; and WHEREAS, the Federal Insurance Administration issued the letter of final determination on March 27, 2013; thereby setting a six month adoption date of September 27, 2013; and WHEREAS, the Public Hearing notification process has been complied with. NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning Commission that: Section 1. The Commission recommends Council approve the attached Ordinance 2013- , adopting the Digital Flood Insurance Rate Maps (DFIRM) and the Federal Insurance Study (FIS) affective September 27, 2013. Section 2. The Conunission further recommends the Council approve the attached Ordinance 2013 -_, amending various portions of Title 15.25. Floodplain Management to meet minimum floodplain management requirements as provided by FEMA. ba Seward Planning and Zoning Commission Resolution 2013 -12 Page 2 of 2 Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the Seward Planning and Zoning Commission this 4th day of June 2013. THE CITY OF SEWARD Sandie Roach', Chair' AYES: Butts, Campestre, Fleming, McClure, Ecklund NOES: None ABSENT: Roach' ABSTAIN: None VACANT: One 41 ta✓ ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 63 w City of Seward, Alaska Planning Commission Minutes . June 4, 2013 Volume 7, Page 35 New Business Items requiring a Public Hearing — Resolution 2013- 12 of the Planning and Zoning Commission of the City of Seward, Alaska, recommending City Council amend portions of Seward City Or Code 15.25 Floodplain Management to adopt the September 27, 2013 Digital if Floodplain Rate Maps as established by FEMA and update portions of Title 15.25 to minimum FEMA requirements Glenz noted the history of the federal flood insurance program and the requirements for local management of floodplain development. The effort to digitize the local floodplain maps took several years to complete. Glenz further noted the City had six (6) months from the date the Federal Insurance Administration sent a letter of final determin, to adopt the new DFIRM maps and the required City Code amendments to remain - _ 1 ' .le for the Nation Floodplain Insurance Program (NFIP). 3 * . "'�L Butts asked for clarification regarding any action G54 R Co, Sion might take and what was required of City Council. '` -, r, Glenz said the resolution before the Commission wasr;y ommendation to Council in support of the adoption of the attached Ordinance, which include. the proposed floodplain maps and corresponding changes to City Code. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. , ' ' , City resident D_ . ' Squ . ; E aE rik- • how prospective property buyers would know if a property had been imp . ; ed to I " , : lain development standards. 4,-:mot Glenz said prose :* buyers could do research with the appropriate offices, such as the Kenai River Center for 'MAI within the Kenai Peninsula Borough and the Community Development Office for parcefthin the City limits. Prospective buyers could also research the available floodplain maps and have discussions with lenders regarding necessary flood insurance. Squires asked if more public education efforts might be helpful to inform property developers. Glenz said the City continually meets FEMA requirements for providing public information and notification, including contacting property owners, realtors, lenders, local insurance agents and contractors; the City also participates in the annual public permitting and information day held locally. Motion (Fleming/Butts) Approve Resolution 2013 -12 A 6`4 City of Seward, Alaska Planning Commission Minutes June 4, 2013 Volume 7, Page 36 Butts questioned whether housing lenders provided floodplain development and flood insurance information. In response Glenz stated that lenders were able to direct their clients to the apocopate agency for information and assistance. Ecklund noted that not all of the Kenai Peninsula Borough was participating in the National Flood Insurance Program. Glenz agreed that the City of Kenai, Soldotna and Kachemak City do nod, rticipate in the National Flood Insurance Program, but the remainder of the Kenai Pen;. , ; S a Borough was participating. The local floodplain development requirements were, essen ' =`' ?; , identical to those of the Borough, Glenz said.y Z ,. ,ek6 Motion Passed Unanimous , g '', Unfinished Business — None New Business — None Informational Items and Reports (No action required) Reminder of June 18 Seward / Be" c,,; z `'+ �, y ,} ., Q r Ayr vice Area Work Session . wav 2013 Planning & Zoning Meeting S d js s:w ki` '5i Reminder of June 24 Quarterly Repa7 , o Council Ecklund asked Fleming if she would F. providing the quarterly Planning and Zoning Commission report to City Council. Fleming said she would provide the report, Fleming said she planned to gather the latest inforrrp:~5;r her Council report at the scheduled June 18 Planning and Zoning Co, it idity � k session. Cosion Commer ' t. ti ��.; . estre'- ed retired Fire Chief David Squires for his years of service. 4A0lii'. Flenit so thanked David Squires for contributing to the com.rnunity. McClure noted that he would not be available for the scheduled June 18 work session and asked to be excused. Butts thanked David Squires for being an advisor the Planning and Zoning Commission over the years. Butts also noted the recent death of Seward Resident Jerry Tuthill, who was a key member of the Seward Volunteer Fire Department and other cormnunity organizations. .11r Sponsored by: Hunt sod CITY OF SEWARD, ALASKA RESOLUTION 2013 -049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING FUNDS FROM THE ALASKA ONLINE WITH LIBRARIES (OWL) PROJECT FOR AN AWE EARLY LITERACY STATION IN THE AMOUNT OF $2,953.00 AND APPROPRIATING FUNDS WHEREAS, in April, 2013 the State of Alaska's Online With Libraries (OWL) Project staff offered to fund the purchase of an AWE Digital Learning Solutions Early Literacy Station for the Seward Community Library Museum; and WHEREAS, the Early Literacy Station is a stand -alone computer equipped with educational games and activities appropriate for children from pre - school to 8 years of age; and WHEREAS, the staff of the Seward Community Library Museum submitted a successful application for the equipment. 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 appropriate funds to Nod purchase an AWE Digital Learning Solutions Early Literacy Station for the Seward Community Library Museum. Section 2. Funding in the amount of $2,953.00 is hereby received and appropriated to account no. 101- 0000 - 4680 -0200 to the Library Small Tools and Equipment account no. 101 -1500- 5460. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of June, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor Agenda Statement 440 Sew (ire Meeting Date: June 24, 2013 e 11A To: City Council 'AsKp Through: City Manager Jim H61 From: Patricia Linville, Library Museum Director Agenda Item: Accepting funds from Alaska OWL (Online with Libraries) Project BACKGROUND & JUSTIFICATION: In April 2013 the OWL Project staff contacted the Library Museum Director to ask if there was interest in receiving an AWE Early Learning Computer Station for the facility. The learning station is a stand -alone computer equipped with educational games and activities appropriate for children from pre - school to 8 years of age. A brochure detailing the features is attached. Staff filed the grant application which was reviewed and accepted. Grant monies have been received and the equipment was ordered and received. The grant application and agreement are attached. INTENT: Receive and appropriate funds for the purchase of AWE Early Learning Station for the children's room of the Library Museum. 1 41rrr CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (3.9.1.1): Support community engagement 1. programs that promote positive adult youth relationships and activities X that enhance health and well -being across the generations. 2. Strategic Plan (pg12): "...expand Library Services, .... " X 3. Other (list): FISCAL NOTE: The funds received ($2953.00) from Alaska OWL Project grant program will fully fund this project. Approved by Finance Department: 2,, , Apt. ATTORNEY REVIEW: Yes No X ,, RECOMMENDATION: City Council approve Resolution 2013- accepting $2953.00 and appropriating funds to purchase an AWE Early Literacy Station. L iteracy Station , Aw E Early • ,.. , ....., Opening t he door to a lifetime of learning DIGITAL LEARNING SOLUTIONS ° � IP Suppor early learning in your community with a proven asset: over 35% of pu bli c library systems i n the U.S. have an Early Literacy Station Children can learn independently No technical support, Internet connection, or staff assistance required z ma x i ,,, 4 , r r '2: y k vvitid " E� , � r, *'` r r r- s` fi i t, . #, a,.. - a x as .' � f ��� { i,„) ;1; pit T ; / a Ywf ac • 1 '' ' ; ` 1 jai awu, I f1 '" nr_; a ' p ... - p :n ¢ ?�` fi ..L r r 4 Rit ,� ;l �" "YZ ,,, ;77:' , „ '�',,„ l � rY�J 4.. < -fir l� f��� ''' '''''..-""' ' ''''\' . '''''''''''''''' .' :ar';' '71::::1,!...,;',."'„,.':,:f1 ' * .00 _.....4110 . f , LA f Wed 1 • • . • • • . . • • .. .. . ecure, asy o Ise, an. 10 n erne onnec ion 1 ee • e • Put it on a desk, and plug it in! The Early Literacy StationTM (ELS) is a self - contained educational computer for children ages 2 -8. It requires ,...4P,:,1„4. .. y '"no technical support. You simply plug it in and turn it on. l ' .2, " " :..1- IsAw It is available on various computer hardware types. R Ir. 3 '' . The English version features more than 60 top -rated ; >Y ,,,, educational software programs spanning seven curricular -. areas. It is also available in Bilingual Spanish and French. � p Kids and librarians will love the ELS! , Nofti►• 1 • Kids are instantly engaged by an imaginative '= -�- +a , P ,,,,,.�1 interface that includes touchscreen gesturing and ,, � .„,.,.. page - turning functionality = ., • AWE has carefully selected and integrated .,. ` the best educational software so libraries don't have to • The ELS is an incredible asset and value featuring a , 3 -5 year warranty, full technical support, and an updated version each year i Libraries continue to be ffi,. �: k "the great equalizer, serving 1 � ' - all types of communities $.- a `: 1.1 Some children don't have access to educational computer 4 - ! X � U . , , ., . " rams in their homes. With the Early Literacy Station, c ',. r . k. st �1rr, programs y y � you can bridge the education gap in your communities. , ' al , �_� , ? You can make your library more valuable by having tools I " that help all kids. �� ., � : , ! ^ ._ • Children gain education skills at your library that will ' ��� 4 put them on the path to a lifetime of learning N ;0. • Supports school readiness and cultivates a love " ' ' - of learning • Draws children and families to your library • Ideal for special programming like Math Mondays, Music Wednesdays, or Art Fridays • Makes your library a popular destination for children —they will be excited to use the ELS and u• �� will want to come back again and again -- f g a ,gins - te r, Y _ iN Y{ rte. � '' ntt , • • - • _ • _ _ • • • - • - • • - • w.r ea ures • ore an • 1 un an • • uca Iona • rograms ELFTM Child -Safe Browser and <s.„ , . ,va#t. _ ELF Reading & Reference: Yearly �, yyy l /',f 0 tr.n a vrq on the Sta. V . of the USA and the . e x subscription products you a� �at.,, ntt��'Wt� can distribute for free ` 1 4,.z..„„,..._,,,,,,_ ° "? - { kytt to your community ma" s< ' r �. and nature tnMU9hW[tM '� , 1:1"`1' [ y ,.,$' , ..•'"i The ELFTM Child -Safe Browser allows children to safely ' '' i explore carefully chosen, highly engaging free -use t"' l r ►�•d educational resources on the Internet. ELFTM Reading & . �' ,, , � ; Reference is an expanded version that also includes 'if' . - � ' *' '4"..4' .` K ; ifti exclusive access to Speakaboos interactive storybooks, ,',1".,4-1 a subscription to Encyclopedia Britannica for Kids, and a �' ELF SHELF library of e -books in the ELF SHELF. , .•• ...... ®•. r Both of these can be given to parents in your community for free! You can brand it with your logo, add and hide websites, and more. '2„. fig i Ease your IT administrative burden and save money In addition to requiring virtually no IT support, the ELS features ....� many behind - the - scenes controls that simplify your job. ---- ---� -= a ="" a� • Automatic utilization reports for funders and state libraries •,.. �_�»�, • Timed session controls eliminate sign -up sheets - • Set the ELS to turn on and off automatically each day • Manage printing to control costs .M.. �' '� .- "` • Connect the ELS to the Internet to receive updates ands' check usage stats from anywhere online . r • Work created by kids can be automatically cleared daily, weekly, monthly, or even between user sessions "We can see that these Early Literacy StationsrM engage their thinking. The programs are intuitive and very easy to use Even children with no computer experience are able to sit down and start right in and begin learning on so many levels." - Julia Cartwright, Fond du Lac Public Library i ,',0,;7- 'f : t NEW •'+.,„ la 't., Carefully s electe d content = :'3Idc�} - e ; 'm E Be ss Y ADvE, a . . that is fun and educational . ,.�t� " mini AWE uses a comprehensive process to evaluate and select the 4 as `• �, ; . r ` ry ` , 11 , . content titles to ensure the ELS features a wide range of '`4 � ' � ' k if . educational programs that touch on all curriculum subjects. i� The ELS seamlessly combines classic titles like Reader Rabbit � PEX Toddler with cutting edge programs like Math Doodles, : the Giggles titles, Kid Pix 3D, and World of Goo. ... :i .. •. - Early Literacy Station Opening the door to a lifetime of learning ' v DIGITAL LEARNING SOLUTIONS P 9 3 ", r ? Z r?,- in � , , ' • o� Hardware platforms The Early Literacy Station is available on various computer hardware types to meet your needs.* t 0 f h � .I ,R n ' I x r p C r 2. 'fit _ «�x?t *K•sa- rvro.....4• mmnv.«cr,r'Rnw zsro. r, e.ar; nyP,o- ®r.+ae^e.,w.rv.y.-c.,.:. • „ Ma+vxc+»s. *Hardware platforms change periodically. Contact us for the most up -to -date options. t. xiY Customer support and updates '1 „ AWE offers customer support via phone and email. The AWE Support team is ;:- �' ' the point of contact for all questions, problems, and information or service requests for our customers. Well trained and experienced representatives 4 deliver responsive service and technical support throughout the entire service w i lifetime of every Early Literacy Station. Incredible Value - Low Total Cost of Ownership AWE provides products that have a low total cost of ownership as our solutions are simple to manage and implement, require no extensive training, and are covered by one of the best warranty deals in the industry. We offer a 3 -5 year warranty, lifecycle support, and trade -in credits on older systems. A big plus is that no on -going technical support is required, which means less IT staff requirements or need for other expensive staffing resources. The initial cost of the product is your total investment! Contact us for more information on our digital learning solutions. We can also help you with funding assistance! www.awelearning.com 888 - 293 -0272 info @awelearning.com AWE, Inc. 2501 Seaport Drive, Ste. 410 -SH 'Ill. Chester, PA 19013 Inspiring every child to become a lifelong learnerTM J ", • •it Iv, • 1 ALASKA OWE PROJECT GRANT .-1,\NARD DE PART:NIENT OF EDI cvrioN & EARLY DEVELOPMEIN'l DINASIOS OF ST All: LIBRMUES, .1RC HIVES &:■11' P.O. BOX 110571 - S r rr OFFICE Rt'ILDING Ni 99811-0571 1 t 11.\ :1No Scv,2,rd our L1111-ar‘ Alaska 0\V1. — AWE Etirly Literacy .P. P. 0. Box 23',;.0 0WL-13-770-,;:i PRI !P.A Nu. StrAlird. , K .'05 101 Al (IAA! A; I 1OK;711) LIBRARY 1t.11rwia 1.1n% 1-101:1 RI 1,,,,FAVI,A.11\1, 1-;1 \ITATIVE NIA!' Cit\ of P. 0, 1 3;):, 16 t,0604 (-) V\I PRUJI (. 1 (IRA NI A\\ AP,1) Anril 1. 2i )13 :•(). 2013 URA \ r AN (xcirL..,0 1 0 1 - 1 1 1 GRA \ %It s-r I 1)l0 011 - DIRI-crok OF THE SI BI F-X0 \ D VI sE BF-COVE' 11 D F APRIL 111L ".;01.1:.( 1- or 0 ' FOR I HIS ,\(,i2FINII \.1 Is A 00 1 0%\ BTOP Ft.deral (rant (41).N. 11.557 .N+‘ar(1 N. 02-42-1310560 S2953.00 Cita .2.(1 t1:2 ,:::.1:11c 2111.1y t'n.2 , ,t11:osta 1‘ tilt; audit 1ctittirements of Stat2 2 A.A.0 43 01 111t: tlat22 may be requircti t pro id2 for an audit and to p2r2.111 intler2:1ticnt udir to 1:a‘ ea. c to !inan2ial statemcnt:%. .1112 :;s1.1111Ce ■1101.11,1COncillt \\I:0 :1:1 indtTt'ldalt auditor 1 a1n in L1:1 2rric.I111: rccitnremtmts for c..1.1.1 0,cal year. Riturzrui- PR( )1i t.'1 pl. L liv Sc.. 1. 2()1 NI(); NI CHA11 PPOJELT 11/ 1 • ki(C S"'0f3.0,) 0591213 :01 1 IRRAN[-s D K PA 'V -131)204 Vi S295.1.00 1)1 PAY'? Ye:•; X tr<Tv 1_11 '44111101 . _ - - — r — GENERAL ELECTRONIC PMT 2 52344C0 AW 04 /22/2013 2 ,5�3.QO 04 /18/2013 :.. 04/22/2013 04/29/2013 CITY OF SEWARD PV BOX 167 SEWARD AK 9 9664 -0167 2 ,953.00 . E0833803.30364 i .. 25234400 2013 2013 2013 5912313 57f1530 77431 2,953.00 — 25234400 2 _ PVN C'CS84255 *IJ CWL1377001 CITY OF SEWARD T_'_ti'rj GWI,13 7 7 0 0;. AK OWL PROJ —AWE EARL BEN CWL1377001 2,953 04/12/2013 4/01/13 — 6/30/2013 _.1 F083380000364 2,953 04/12/2013 4/01/13 — 6/30/2013 Sifter - �3 AWE Cu: Invoice, Number: SCLM13001- 0111 ,:1L IHARNING sow ricNs Invoice Date. Apr 15. 2013 Page: 2501 Seaport Dnve. Suite. 410-SF Chester, PA 1 90 1 1 Bin To: Seward Community Library Museilin 230 6th Avenue :inward, AK 99664 Attee4io.1: Patr:cia iOlc Customer ID Customer PO Payment Terms SCI M Net 15 Days Sales Rep Shipping Method Ship Date Due Date Weaver, Linda Crourid 415/13 4130/13 Quantity item Description Unit Price Amount Seward Community I bran, Museum 1.00 LLS LNG EARLY 1 :TE.13ACY A 5O NM F1 2.835 00 2.835.00 UNI1i5:: 5 Ns CPU cc.ptnxt)2 2.00 .4P-AVVE. AWE HEADPHONES v °UWE 20.00 40.00 CONTROL Al 1 Af - PU LLAWAY Corti) AT ¶W“;:i..;P r A.NDARD CONNITCT IVI 1 Y 1 00 Y SPLITTER AUDIO Y SPI I [IT R CABLE (ALLOWS 2 3.00 3 00 SETS OF HEADPHONES SIMUi TANEOUSI Y) 1.00 SHIPPING SI IIPPIN(.3 Ci IARG ES 75 00 75.00 „ — AWE ledet al Tax ID. 23-2776501 Subtotai 2.953.00 Sales Fa> Phone: i610) 833-6400 Totai Invoice Amodnt 2.053.00 61M 833-6440 Payment/Credit Applied TOTAL 2,953.00 PLEASE REMIT PAYMENT TO THE FOLLOWING ADDRESS: 2501 Seaport Dnve, Si1e 4- 1 - SH Chester, PA 19313 . ■ , , . , , . , inspiring every child o wE , become a lifelong learner ., Skit ■ i !,1'...'N, „,,4111, ,, 111 . . r . , . .-- . : '. ' "' :.......-*----7- 7 -. - .--; ..4„,..i.i:4'.,, 'V.,;',-.401i."-4:7: . ' ':.?.,7•K.:41.4‹ •; -.•••••.. :,,"' ',•• -,' : ,. .. - .....: , f , t, -, ,:lti:. -- :' , '.-, , .,,,...:. .... ,, -.: :!, -. -', - 0:1 : .-.:-,. , L 'tgan!zaZicar !•_ i Cr. •:.';r.'.: • I ,'.."■,. . 117 ' ! , ,,...:cs „Jilt.; „,„ pi; ; : : . ..., z - -....-4 Product r Total ! • , _L._ •__. .2.7.22 ...i... z: .i1.-1.12...:.:..;._..._ ' . ' '.'.. ,.":_' , ,.' ____-....:.2:.2.12.S.12"..'.'.:-.1....±:,:ii;2i...,.12.2..":.. . . . l41 11111e . . , _ .._. ... .... , . ., 1_ , `■ Hrl. , ir".. . :•., c.:' ', , .-.: A „ 1 thrary . ... , . .. . - . ., . _ „. Av + 7 1,..r, . r ' C ..."- ' • . t!:.,. L.11e ..... . . .__ „. ..':ir. Sill To Infortnation Siltp To Irttc)rmatioo ...„,..,.. - -, .., - .... „. . ... ....._ _ _ .,........„ .... ,.. - -•. ,- • . . , . . , ... . . , ‘ 15 row Fed, 'Nod April 25,2013 Daar Customer: The following istkop,00i'nf-UoUvery for tracking number 6G0O8OSO4912. � Delivery Information: Status: Delivered Delivered to: Ruceptioniot/FmntDesk Signed for by: T MARROW Delivery location: Seward, AK Smnioetype: For.1Ex2Oay Delivery date: Apr 17, 2013 17:05 Special Handling: Deliver Weekday Signature available. m order to view image and oomi!wj i'fo/mation, the shippor or payor account number of he sfpment must be poiided. Shipping Information: Tracking number 58008O9049 Ship date: Apr 15. 2013 Weight: 20.0 |bn/91 kg Recipient: Shipper 5avwnd, AK U5 FXTON oA V5 Reference YVall'0179094 Purchase order number 130038T" Than you fcvnnooymg Fed Ex. -7/ Alaska OWL (Online With Libraries) Project EARLY LITERACY HARDWARE AND SOFTWARE ‘kirr. APPLICATION PAGE 1 DUE: April 1, 2013 1. Library Name: Seward Community Library Museum 2. Address: Box 2389 239 6 Ave City: Seward Zip: 99664 3. Contact Person: Patricia Linville 4 Phone No: 907 -224 -4008 5. Fax No: 907- 224 -3521 6 E -mail: plin� i11e!�c`citvotseward.net 7. Warrant Mailing Address: City of Seward Box 167 Seward, AK 99664 8. List the hardware and /or software you plan to purchase with the Early Literacy Hardware and Software Grant Hardware /Soft Description: Estimated Cost 1 AWE Early Literacy Station (including software and 3 year standard warranty) — No internet capability - Group quote (cL $2,835 ea. $2835.00 1 Audio Y Splitter (for simultaneous use by parent & child) @ $3.00 $3.00 2 AWE Headphones w/ volume control @$20.00 ea. $40.00 SUBTOTAL $2878.00 Shipping (est.) $75.00 TOTAL: $2953.00 9. Briefly describe how this hardware and /or software will enhance public access computing in your library. We opened the Seward Community Library Museum in January of 2013. The new facility has a beautiful children's room that is used daily by parents and kids. The single computer is a popular seat with games and ebooks accessible by a11. Yet staff is constantly being called to assist with the outdated computer games that are used in the children's room. Adding the AWE station will enhance this experience for both sets of users and those of us who have to manage them. The AWE station will bring the SCLM to the next level of creating easy access to technology. ` • iftraarinrimmumw HARDWARE AND SOFTWARE ENHANCEMENT GRANT GRANT AGREEMENT PAGE 2 Whereas, the State of Alaska has received funds from the US Department of Commerce for Alaska OWL grants; and Whereas, the application of the Grantee for an Early Literacy Hardware and Software grant has been approved. NOW THEREFORE, for and in consideration of the mutual covenants herein contained the parties hereto agree as follows: A. The Alaska State Library agrees to: 1. Furnish funds in the amount of $2953.00 B. The Grantee Library, (insert Library Name) Seward Community Library Museum agrees to: 1. Abide by the conditions set forth in the application and approved by the Alaska State Library. 2. Place orders by April 30, 2013 3. Provide a report of average daily usage by September 1, 2013 4. Maintain accurate records for auditing purposes. 5. Credit the Alaska OWL Project and the Rasmuson Foundation in all publicity and advertising concerning the impact of this grant project. 6. Attach Alaska OWL labels to all hardware components and cords and credit the Alaska State Library and the U.S. Department of Commerce as appropriate. The source of funding for this agreement is as follows: FY2013 U.S. Department of Commerce BTOP Grant $5.3 million By accepting this award or agreement, the grantee may become subject to the audit requirements of State of Alaska Administrative code 2 AAC 45.010. As a result, the grantee 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. The undersigned understands and agrees to the conditions of this agreement. Note: Grant agreement MUST have both signatures For the Library: For the Legal Entity: j _t' C t � _,l� Gt in Print or Type Name t or Tv. to; e - (.2 6-L 1 Signature igpature 0 11 i i C r% ;'Y` f 1 Cr/ . r 7 j )') LL-G,%"(ck -c; C%r Title Date Title / � Date Questions? Contact Sue Sherif, 800- 776 -6566 Return form to: Alaska OWL Project ATTN. hunter Dean, Alaska State Library, 344 West Third Avenue, Suite 125, Anchorage, AK 99501 PLEASE PHOTOCOPY BOTH PAGES OF THIS FORM FOR YOUR RECORDS! Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO SIGN AN EXTENSION OF A SPECIAL SERVICES CONTRACT BETWEEN THE CITY OF SEWARD AND THE DEPARTMENT OF PUBLIC SAFETY PROVIDING DISPATCH AND CLERICAL SERVICES TO PUBLIC SAFETY EMPLOYEES IN THE SEWARD AREA FOR FORTY EIGHT THOUSAND AND FIVE HUNDRED DOLLARS ($48,500.00) WHEREAS, the City of Seward has entered into an agreement for the past fifteen (15) fiscal years to provide dispatch and clerical services to Alaska State Troopers and Fish and Wildlife Protection Officers in the Seward Community; and WHEREAS, the amount of compensation for dispatch services has been Forty -Eight Thousand and Five Hundred Dollars ($48,500.00); and WHEREAS, the attached extension would continue the services at the current rate through June 30, 2014. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY like,, OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to sign an extension of a Special Services contract between the City of Seward and the Department of Public Safety providing dispatch and clerical services to public safety employees in the Seward area for Forty -Eight Thousand and Five Hundred Dollars ($48,500.00). Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of June, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor Agenda Statement Meeting Date: June 24 2013 1 pF SEg To: Jim Hunt, City Manag r :F • From: Tom Clemons Chief of Police 411 . - A - 60 Agenda Item: Extension of Special Services Contract between the Department of Public Safety and the City of Seward BACKGROUND & JUSTIFICATION: The City of Seward has entered into an agreement for the past 16 fiscal years to provide dispatch and clerical services to the Alaska State Troopers and Fish and Wildlife Protection Officers in the Seward community. The amount of compensation for that contract has been $48,500. The attached extension would continue the services at the current rate through June 30, 2014. INTENT: To authorize the City Manager to sign an extension of a Special Services contract between the City of Seward and the Department of Public Safety. CONSISTENCY CHECKLIST: Yes No NA 1 Comprehensive Plan: (Page 14) Public Safety X 2 Strategic Plan: (Page 18) Promote a Safe Community X 3 Other: X FISCAL NOTE: The City of Seward will receive the sum of $48,500 from the State of Alaska for this contract. These funds have been anticipated and are already included in the 2013 budget. Approved by Finance Department: ,1 i ,� /1►, ATTORNEY REVIEW: Yes No X RECOMMENDATION: Recommend approval of Resolution 2013- 05 aauthorizing the city manager to sign an extension of a Special Services contract between the City of Seward and the Department of Public Safety providing dispatch and clerical services to public safety employees in the Seward area for $48,500. ALASKA DEPARTMENT OF PUBLIC SAFETY CONTRACT FOR SPECIAL SERVICES July 1, 2013 to June 30, 2014 GENERAL PROVISIONS The parties. The parties to this contract are the Alaska Department of Public Safety (hereinafter referred to as the "Department ") and the City of Seward (hereinafter referred to as the "City "). Sole Agreement. The City and the Department undertake this contract under the terms set forth below. This contract is the sole agreement between the parties relating to special services, and there are no other agreements, express or implied. Effective Date/Termination /Amendments. This contract is effective July 1, 2013 and continues in force until June 30, 2014. Either party may terminate the agreement with thirty (30) days written notice to the other party. This agreement may be amended by written agreement of the parties. 1. The Department will pay the City for services provided in accordance with, and under the terms of, this contract. Payments will be made quarterly in the amount of $12,125.00, for a total of $48,500.00. Payment for services provided under this contract will be made in four payments in the amount of and covering the period indicated below: Period Covered Amount Payment Process Can Be Initiated 07/01/13 - 09/30/13 $12,125.00 10/01/13 10/01/13 - 12/31/13 $12,125.00 01/01/14 01/01/14 - 03/31/14 $12,125.00 04/01/14 04/01/14 - 06/30/14 $12,125.00 06/01/14 12 Month Total $48,500.00 2. The City will provide and perform the services specified in this contract to the satisfaction of the Department, in support of Department personnel and operations. SPECIFIC PROVISIONS 3. The City will: a. Provide full dispatch services, APSIN /NCIC services, telephone answering and message taking services, and public reception services relative to Department business 24 hours each day for the Department and Page 1 of 2 �1 _ a.rrr► ALASKA DEPARTMENT OF PUBLIC SAFETY CONTRACT FOR SPECIAL SERVICES July 1, 2013 to June 30, 2014 Department Personnel working in vehicle, vessel or foot, in aircraft or any other means in the greater Seward and Lower Kenai Peninsula Region; b. Provide full clerical services and support to Department personnel, including access to and use of the office copying machine and fax machine; to include typing of criminal complaints, transcription of taped statements, typing services as needed for completion of police reports; c. Permit continued access to and utilization of professional facilities and equipment instrumental to the overall efficient and effective operation of law enforcement and emergency response component, i.e.; squad room, kitchen, weight and exercise room, interview rooms, storage rooms, evidence processing room and equipment, a secure locked evidence room accessible only by authorized AST personnel, Data Master, video and training material, other general building facilities including parking for state vehicles, ATV and snow machines. d. Permit continued transport and security of prisoners from the Seward City Jail to Seward Court for hearings and arraignments. IN WITNESS OF THIS AGREEMENT, the undersigned duly authorized officers have subscribed their names on behalf of the City and the Department respectively. For the City of Seward: For the Department of Public Safety: By By Printed Name Printed Name Official Title Official Title Date Date Nod Page 2 of 2 0� Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH HARMON CONSTRUCTION FOR THE CIVIL AND SITE WORK AND FOR THE FOUNDATION OF THE ELECTRIC DEPARTMENT WAREHOUSE IN AN AMOUNT NOT TO EXCEED $493,190, ESTABLISHING A 10% CONTINGENCY FUND AND APPROPRIATING FUNDS WHEREAS, the City Council approved Resolution 2007 -085 which authorized the City Manager to pursue funding for two electric generators and associated components and design/build proposals for Fort Raymond generator building and a warehouse with office space; and WHEREAS, council approved Resolution 2012 -028 accepting a grant from Alaska Energy Authority to upgrade and update generation facilities at Fort Raymond Generation Plant for $3,960,000 and appropriating funds; and WHEREAS, a line item in that grant specifies that $1,400,000 of the grant is to be used to build an office /warehouse; and Stow WHEREAS, the city developed a scope of work and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215; and WHEREAS, two bids were received by the required deadline of April 30, 2013 at 2:00 p.m.: and WHEREAS, the city reviewed all bids and concluded Harmon Construction was the lowest, most qualified and responsive bidder with a base bid amount of $493,190; and WHEREAS, the city believes that a ten percent (10 %) contingency is necessary for a project of this magnitude to address the potential for unforeseen project costs. 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 construction contract not to exceed $493,190 with Harmon Construction, for the civil and site work and for the foundation of the electric department warehouse. Section 2. Funding for this contract in an amount not to exceed $493,190 is hereby appropriated from account no. 505 -5052 -5930. Nowe g3 CITY OF SEWARD, ALASKA RESOLUTION 2013 -051 , Section 3. The City Manager is authorized to draw additional funds, as needed, to cover contingencies in the amount not to exceed $49,319 from account no. 505 -5052 -5930. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24 day of June, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor Ntrid AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) Agenda Statement %oF S , '411.e Meeting Date: 24 June 2013 =b t v y ,� o To: City Council 4001 ti' 4 4ASwP Through: City Manager Jim Hunt " From: John Foutz, Electric Department Manager Agenda Item: To authorize the City Manager to enter into a construction contract with Harmon Construction for the civil and site work BACKGROUND & JUSTIFICATION: At the August 13, 2007 work session, the City Council gave direction to the administration to begin working to replace two generators, and to construct a building to house the generators and a warehouse with office space at the Fort Raymond site. On August 27, 2007, Council approved Resolution 2007 -085 which authorized the City Manager to pursue funding for two electric generators and associated components and design/build proposals for Fort Raymond generator building and a warehouse with office space. This project has been divided into two phases, with the generation building being Phase I and the warehouse as Phase II. Phase I is ongoing at this time. The current resolution relates to Phase II. Resolution 2012 -028 accepted a $3,960,000 grant from Alaska Energy Authority for the purpose of completing Phase I and beginning Phase II. A line item of that grant dictates that $1,400,000 of that grant will be spent on the Warehouse. During the month of April, the City developed a scope of work and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215. Out of twenty -six Plan Holders, there were two responsive proposals. The proposals were opened and analyzed according to the criteria presented to Council in the City Manager's report on 8 April. The successful proposer was Harmon Construction with a bid of $493,190. INTENT: To authorize the City Manager to enter into a construction contract with Harmon Construction for the civil and site work and for the foundation of the electric department warehouse in an amount not to exceed $493,190 and establishing a 10% contingency fund and appropriating funds from account number 505 -5052 -5930. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (1.3, 3. 7.3.1, 3.7.3.2): X 2. Strategic Plan (document source here): X 'O.• X 3. Other (list): FISCAL NOTE: Total amount not to exceed $542,509, being the sum of $493,109 and $49,319 from account 505 -5052 -5930, funded in from AEA Grant #7910011, already accepted. Ntird ziee Approved by Finance Department: j_ ATTORNEY REVIEW: Yes X 4r No City Attorney provided contract template. RECOMMENDATION: ' R 0 ' h 0- 2_013 0 J Authorize the City Manager to enter into a construction contract with Harmon Construction for the civil and site work and for the foundation of the electric department warehouse in an amount not to exceed $493,190 and establishing a 10% contingency fund and appropriating funds from account number 505 -5052 -5930. `rr Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2007 -085 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURSUE FUNDING FOR TWO ELECTRIC GENERATORS AND ASSOCIATED COMPONENTS AND DESIGNBUILD PROPOSALS FOR FORT RAYMOND GENERATOR BUILDING AND A WAREHOUSE WITH OFFICE SPACE WHEREAS, as a direct result of damage to the manufacturing plants caused by Hurricane Katrina, the manufacturer of replacement parts for the ALCO generators are no longer providing parts, resulting in two of the City's ALCO generators needing to be replaced immediately, or risk the loss of consistent energy for the community when a generator fails; and WHEREAS, constructing a building to house the replacement generators is the best permanent solution and allows for improved generator control systems, as well as maximizes the useful life of the generators; and WHEREAS, the Electric Department has been sharing numerous buildings around the City for material and equipment storage and the current arrangements are no longer adequate to meet the needs of the department; and WHEREAS, the construction of a combined generator facility and a warehouse with office space would result in long -term cost savings to the City and would improve efficiencies in the department; and WHEREAS, the property located on Lot 6A -1, Fort Raymond Subdivision, Replat No. 2, which is also the location of the City's emergency generators, is owned by the City and is zoned institutional; and WHEREAS, this location has easy access for customers and is close to our new areas of development and would provide for increased security of the City's generation and distribution facilities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City administration is authorized to pursue acquisition of two replacement generators, and to pursue a design/build process, including associated facility plans, for the construction of new facilities for the Electric Department on Lot 5A -1, Fort Raymond Subdivision, Replat No.2. CITY OF SEWARD, ALASKA ' RESOLUTION 2007 -085 Section 2. The City Administration is authorized to pursue any and all funding sources. 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 27th day of August, 2007. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor /..... AYES: Dunham, Valdatta, Schafer, Bardarson, Thomas, Amberg, Shafer NOES: None ABSENT: None ABSTAIN: None ATTEST: Jean i ewis, CMc City Clerk 0 001112,g% 0 *� � a (City Seal) ®: SEAL Sy N - . i b : . "∎: ‹. f .. a �4+ ................... O t L i i ' s�4 'kitty Council Agenda Statement Meeting Date: August 27, 2007 f ', 4 of s et Irt Through: Phillip Oates, City Manager 4 From: Tim Barnum, Electric Utility Manager 1441 -0 Agenda Item: Authorizing the City Manager to pursue funding and design/build proposals for Fort Raymond generator building, two generators and a warehouse with office space BACKGROUND & JUSTIFICATION: After the August 13 work session, direction was given to begin working towards replacing 2 generators, a building to house the generators and a warehouse with office space at the Fort Raymond site. The Electric Department is proposing the following approach to achieve completion of this direction: y Purchase two generators v RFP for design/build of a generator building and warehouse. i= Evaluate proposals based on specific criteria (design, cost, time to construct, ability to phase construction, etc.). ➢ Secure funding Begin Phase I construction (Generator building and installation of generators and controls) Begin Phase II construction (Warehouse with office space) This approach is being proposed to reduce engineering cost and improve overall efficiencies of the project. It gives us a total package cost, allowing for efficiencies built into design and construction schedule. Allows for phasing of the project if needed. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: The estimated cost to purchase two generators, upgrade electronic controls, and construct a warehouse with office space is $8 million. Approved by Finance Department: AMMON S ONS RECOMMENDATION: City Council approve Resolution 2007- authorizing the City Manager to pursue funding for two electric generators and design/build proposals for Fort Raymond generator building and a warehouse with office space. Sponsored by: Hunt Postponed from: May 14, 2012 CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT FROM ALASKA ENERGY AUTHORITY TO UPGRADE AND UPDATE GENERATION FACILITIES AT FORT RAYMOND GENERATION PLANT FOR $3,960,000 AND APPROPRIATING FUNDS WHEREAS, the City of Seward relies on the backup generation facility in times of emergency; and WHEREAS, an update and reliable backup generation facility is in the best interest of the community; and WHEREAS, Council intends the warehouse proposed in the project be designed as storage, dry room, and limited to union offices; and WHEREAS, pursuant to the HB 108 for outright grant of funds, Alaska Energy Authority #7910011 provides funds to update and upgrade the generation facilities at siistrosse Raymond to permit a more reliable generation plant; and WHEREAS, the grant was awarded by the State on July 1, 2011; and WHEREAS, these funds are allocated by the State to complete the Fort Raymond Generation Substation Upgrade; and WHEREAS, the funds to accomplish the work is expected to total $4,164,010 of which $3,960,000 is an outright grant through AEA and $204,010 represents work to be accomplished within the operational budget of the Electric Department. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Seward City Council hereby authorizes the City Manager to accept AEA Grant #7910011 to upgrade and update generation facilities at Fort Raymond Generation Plant, and accepts grant funds in the amount of $3,960,000 to Standby Generator Plant Gram Revenue Account No. 505 -5052- 4680 -0200. Section 2. This resolution shall take effect immediately upon its adoption. k CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 j PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 11. h day of June, 2012. THE CITY OF SEWARD, ALASKA David Seaward, ayor AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: Keil ABSTAIN: None ATTEST: ketl? A•74 A-ery 40110 r�. ohanna Kinney, CMC City Clerk (City Seal) o sstsgef oge 0 SE{�, � *i SEAL • I ,fv,i • ' < P S OF a\- 1 ;.9' • � U+is� j Agenda Statement e o f sp �" w Meeting Date: May 14, 2012 u� '►i '�o To: City Council q. P B ASK Through: Jim Hunt, City Manager From: John Foutz, Utility Manager Agenda Item: Accept Alaska Energy Authority grant #7910011 BACKGROUND & JUSTIFICATION: Grant Agreement #7910011 from the State of Alaska through Alaska Energy Authority (AEA) provides funds to update and upgrade the generation facilities at Fort Raymond to permit a more reliable generation plant, 'l'wo contracts will be presented to the council, separate from the grant acceptance, allocating the grant funds to the winning bidders for integrating the controls and for the building. The grant was awarded by the State on July 1, 2011, in the amount of $4,000,000.00. AEA has taken 1% ($40,000) as administrative fees. The funds to accomplish the work are expected to total $4,164, 010, of which $3,960,000 is an outright grant from AEA and $204,010 represents work to be accomplished within the operations budget of the Electric Department. INTENT: tom, Council authorize the City Manager to accept AEA Grant #7910011 to upgrade and update the facilities at Fort Raymond Generation Plant. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan : Sections 1.3, 3.7.3.1 and 3.7.3.2 X _.._ 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: The grant amount from the State of Alaska is $4,000,000 and Alaska Energy Authority is taking l% or $40,000 as administration fees. The initial projected cost estimated by Jack Anderson with Dryden & LaRue (A subsidiary of EPS) is $4,197,010 and is divided into design and construction of the generation facility at $1,749,250, engineering and construction of warehouse /administrative facility for $1,400,000, engineering at $314,925, and Contingency at $692,835. The amount over $4,000,000 is expected to be match by the City of Seward. Since the $4,000,000 is granted by the State, then the funds do not impact the city's electric department operating expense. The $197,010, if used, will come from the electric department's reserves. Approved by Finance Department: .-itefu ATTORNEY REVIEW: Yes No X - ir.• �,3 RECOMMENDATION: C:ounci I approve Resolution 2012- 0 , authorizing the City Manager to accept grant funds by the state through Nord Alaska Energy Authority for the intended use of upgrading and updating the Fort Raymond Generation Facility. 6Lt Evaluation Criteria 1) Qualifications (50 %) How well has the proposer demonstrated experience in completing similar projects and cold weather climate projects? Has the proposer provided examples of design /build construction experience resulting in timely completion and within budget? Has the proposer demonstrated experience working cooperatively with project teams to incorporate specific needs and concerns of the owner into its work? Has the proposer identified primary individuals such as principal decision makers, project managers, engineers and field superintendent(s) of the prime contractor and all subcontractors? Has the proposer established roles and responsibilities that demonstrate an integrated and complete team of experienced people capable of performing the work in a timely manner for the price proposed? Do the primary individuals assigned to the project have experience on similar projects? Are resumes complete, and do resumes demonstrate backgrounds that would be desirable for individuals engaged in the work that this project requires? Are resumes complete, and do resumes demonstrate backgrounds that would be desirable for individuals engaged in the work that this project requires? SCORE 2) Schedule (15 %) The proposal shall include a time line or bar chart schedule for completion of the entire project, including design, procurement and construction. Complete? Adequate? SCORE Evaluation Criteria Nil Id 3) List of Deliverables (5 %) The proposal shall include a list of deliverables for all drawings, calculations, and documents that will be produced during the design and construction process. Complete? SCORE 4) Proposal Price (30 %) Bid price will be evaluated separately from the information in the Proposal Qualification Package. The bid price shall be provided in a separate, sealed envelope labeled, "Bid Information." The bid price shall be the total cost to complete the construction of the entire scope of work. The bid price shall also be divided by the amounts allocated for completion of each phase of the three (3) phases of the project. The evaluation of the total price will be based on the following formula: Points Awarded = (Lowest Priced Proposal) X (Maximum Points for any Proposal) (Price of the Proposal Being Evaluated) Example of evaluating the price: • Proposal A: $50,000 • Proposal B: $45,000 • Proposal C: $58,000 The lowest priced proposal, Proposal B scores the maximum number of points, 30 points. The other proposals are scored to the closest whole number as follows: Bid A Bid B Bid C (45,000x30)/50,000 = 27 30 (45,000 x 30)/58,000 = 23 Evaluation Criteria BID PRICE Harmon Construction North Star Paving BID SCORE BID SCORE At SCC 6.10.230 we find the authority for local preference and definition of "local ". "The contract shall be let by the city council to the lowest qualified responsive and responsible bidder; provided, that if the lowest bids are approximately equal, that is within the lesser of $5,000.00 or five percent of each other, preference may be given to local bidders who maintain and operate businesses within the boundaries of the Seward electrical utility service area. Local preference will be applied to the bid process except when specifically excluded within the request for bids. The city council may reject any or all bids and may waive minor irregularities in the bids." l 1 Qualifications (50 %) North Star Harmon No. Question Score Score How well has the proposer demonstrated experience in completing 1 similar projects and cold weather climate projects? Has the proposer provided examples of design /build construction 2 experience resulting in timely completion and within budget? Has the proposer demonstrated experience working cooperatively with project teams to incorporate specific needs and concerns of the owner 3 into its work? Has the proposer identified primary individuals such as principal decision makers, project managers, engineers and field superintendent(s) of the 4 prime contractor and all subcontractors? Has the proposer established roles and responsibilities that demonstrate an integrated and complete team of experienced people capable of 5 performing the work in a timely manner for the price proposed? Do the primary individuals assigned to the project have experience on 6 similar projects? would be desirable for individuals engaged in the work that this project 7 requires? 49.91 50 Schedule (15 %) North Star Harmon Nord No. Question Score Score The proposal shall include a time line or bar chart schedule for completion of the entire project, including design, procurement and 1 construction. Complete? Adequate? 14 15 List of Deliverables (5 %) North Star Harmon No. Question Score Score A. The proposal shall include a list of deliverables for all drawings, calculations, and documents that will be produced during the design and construction process. Complete? 5 3.17 Proposal Price (30 %) Price Evaluation (See Eval Criteria for Procedure) Score Score Harmon Price = 493,190 30 North Star Price = 930,000 = (493,190 x 30)/930,000 15.91 Total Score 98.91 84.08 1''cg HARMON CONSTRUCTION INC, P O BOX 1650 802.5 PORT AVE. SEWARD, ALASKA 99664 PH. (907) 224 -7145 FAX (907) 224 -7144 IN ID INFORMATION PART TWO BID PRICE Cost to complete entire scope of work in $ $493,190.00 (Four Hundred Ninety Three Thousand One Hundred Ninety Dollars) PHASE I Design Development Phase $ $27,000.00 (Twenty Seven Thousand Dollars) PHASE II Construction Documents Phase $ $15,000.00 (Fifteen Thousand Dollars) PHASE III Construction Phase $ $451,190.00 (Four Hundred Fifty One Thousand One Hundred Ninety Dollars) Addendum acknowledgements Addendum 1 4/12/13 Addendum 2 4/22/13 5 Memos acknowledged tea ;L t_. G�� ..� J -'7 - 7 eH--- - /3 Lawrence Harmon, President Date HARMON CONSTRUCTION, INC /4 11rr• , l ` Alaska National ADDITIONAL INSURED (CONTRACTORS) - AUTOMATIC STATUS WHEN REQUIRED IN CONSTRUCTION AGREEMENT WITH YOU THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART 1. Who Is An Insured (Section II) is amended to ii. supervisory, inspection, or engineering include as an insured any person or organization services. (herein referred to as an additional insured), but only if you are required to add that person or c. The insurance provided to the additional organization as an insured to this policy by a insured, referred to in paragraph 1. of this written contract that is in effect prior to the "bodily endorsement, does not cover "bodily injury" or injury", "property damage ", or "personal and "property damage" caused by your negligent advertising injury ". acts and omissions in the performance of "your work" that occurs within the "products - 2. The insurance provided to the additional insured completed operations hazard," unless the is limited as follows: written contract, referred to in paragraph 1. of this endorsement, contains a specific a. That person or organization is only an requirement that you procure completed additional insured if, and only to the extent operations coverage or coverage within the that, the injury or damage is caused by "products- completed operations hazard" for negligent acts or omissions of you or your the additional insured. However, even if subcontractor in the performance of your coverage within the "products- completed work" to which the written contract applies. operations hazard" is required by the written The person or organization does not qualify contract, such coverage is available to the as an additional insured with respect to injury additional insured only if the "bodily injury" or or damage caused in whole or in part by "property damage" occurs prior to the end of independent negligent acts or omissions of the time period during which you are required such person or organization. by the written contract to provide such coverage or the expiration date of the policy, b. The insurance provided to the additional whichever comes first. insured does not apply to "bodily injury", "property damage ", or "personal and 3. If other valid and collectible insurance, whether on advertising injury" arising out of an architect's, a primary, excess, contingent or any other basis, engineer's, or surveyor's rendering of or is available to the additional insured for a Toss we failure to render any professional services cover under this endorsement, then the insurance including: provided by this endorsement is excess over that other insurance. However, the insurance provided i. the preparing, approving, or failing to by this endorsement will be primary to other prepare or approve maps, drawings, insurance on which the additional insured is a opinions, reports, surveys, change orders, named insured for the covered loss, if the written design or specifications; and contract, referred to in paragraph 1. of this III/ ANIC GL 1061 03 08 Insured Copy Page 1 of 2 100 ,P Alaska National rr endorsement, contains a specific requirement that this insurance be primary or primary and non- contributory. In that case we will not share with that other insurance on a pro -rata or other basis. If the other insurance available to the additional insured, whether on a primary, excess, contingent or any other basis, is coverage for which it has been named as an additional insured, then the coverage provided by this endorsement is excess over that other insurance. This endorsement changes the policy to which it is attached and, unless otherwise stated, is effective on the date issued at 12:01 A.M. standard time at your mailing address shown in the policy. The information below is required only when this endorsement is issued subsequent to commencement of the policy. Endorsement Effective Policy No. Insured Endorsement No. 5 Countersigned By *4 1101•• ANIC GL 1061 03 08 Insured Copy Page 2 of 2 ` �1 Professional Services Agreement with Harmon Construction for and Related Services This AGREEMENT, made and entered into this 24 day of June, 2013 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and Harmon Construction, a corporation authorized to do business in Alaska, with offices located at Seward, Alaska, hereinafter referred to as the "Contractor." WITNESSETH WHEREAS, the City of Seward wishes to enter into a contract with an independent contractor to provide constructing and other services for Design Development, Construction Documents and Construction in Seward, Alaska, as described in the RFP; and WHEREAS, in response to a request for proposals, Harmon Construction Inc. submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit A — Harmon Construction proposal Exhibit B — City's request for proposals dated April 8, 2013. Exhibit C- Contractor's Additional Insured Endorsement. 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall all mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean, Ron Long, Community Development Director, and include any successor or authorized representative. 1.5 "Project" shall mean the planning, design and other tasks related to Page 1 of 9 0D\ Electric Department Warehouse Civil Engineering and Construction in Seward, Alaska, as further described in the City's request for proposals ,.. issued April 8, 2013. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. The total contract amount accepted by the City is $ 493,190.00 , broken down as follows: 1. For completion of the Work constituting the Design Development Phase (Phase 1), the City shall pay the Contractor the amount of $ 27,000.00 2. For completion of the Work constituting the Construction Documents Phase (Phase 2), the City shall pay the Contractor the amount of $ 15,000.00 ; and 3. For completion of the Work constituting the Construction Phase (Phase 3), Sivr the City shall pay the Contractor the amount of $ 451,190.00 4.0 SCOPE OF SERVICES. The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, Exhibit A, to provide professional services based on approved standards and instructions, as specifically described in Exhibit B. This Scope of Services can only be changed in writing pursuant to Section 25.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all work described herein shall be as follows: As described in the proposal, allotting 4 months from notice to proceed. 6.0 PERSONNEL /ORGANIZATION 6.1 Key Personnel. Work and services provided by the Contractor will be performed by: Larry Harmon and designees 6.2 Changes in Key Personnel. The Contractor shall give the City reasonable advance notice of any necessary substitution or change of key personnel Page 2 of 9 (1D- and shall submit justification therefore in sufficient detail to permit the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. 7.0 STANDARD OF PERFORMANCE. The Contractor agrees to provide all required professional services to complete the project and any additions or changes thereto. The Contractor accepts the relationship of trust and confidence established between it and the City by this Agreement. The Contractor covenants with the City to furnish its best skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Contractor shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder required professional judgment and skill. In those cases, the Contractor agrees to adhere to the standards of the applicable profession. 8.0 COMPLIANCE WITH LAWS. The Contractor shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Contractor, the City, or the service which may be in effect now or during performance of the services. 9.0 INDEMNITY. The Contractor shall indemnify, defend, and hold and save the ' City, its officers, agents and employees harmless from any claims or liability of any nature or kind including costs and expenses (including attorneys' fees), for or on account of any and all legal actions or claims of any character whatsoever alleged to have resulted from injuries or damages sustained by any person or persons or property (including contract rights or intangible assets) and arising from, or in connection with, performance of this Agreement, and caused in whole or in part by any negligent act or omission of the Contractor; provided, however, that this paragraph shall not be construed so as to require indemnification of the City from such claims, damages, losses, or expenses caused by or resulting from the negligence of the City. 10.0 INSURANCE. The Contractor understands that no City insurance coverage, including Workers' Compensation, are extended to the Contractor while completing the terms of this Agreement. The Contractor shall carry adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, automobile, and general public liability, to be including property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Contractor shall not commence work under this Agreement or any work on any phase of the Project until the Contractor provides the City with certificates of insurance evidencing that all Page 3 of 9 I D4A required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is an additional insured as described in Exhibit C. b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies specified in the certificate. c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials. d. The insurance coverage is primary to any comparable liability insurance carried by the City of Seward. Upon request, Contractor shall permit the City to examine any of the insurance policies specified herein. Any deductibles or exclusions in coverage will be assumed by the Contractor, for account of, and at the sole risk of the Contractor. The minimum amounts and types of insurance provided by the Contractor shall be as set forth in the RFP issued April 8, 2013, subject to revision at the City's request in order to provide continuously throughout the term of the Agreement a level of protection consistent with good business practice and accepted standard of the industry. 11.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 12.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Contractor for services hereunder include full compensation for all work products and other materials produced by the Contractor and its subcontractors pertaining to this Agreement. The originals of all material prepared or developed by the Contractor or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Contractor and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Contractor included in this project will remain property of the Contractor. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 13.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Contractor agrees to defend, indemnify, and save the City harmless from and against any and all `,, Page 4 of 9 V�� claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Contractor or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Contractor, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 14.0 NONWAIVER. No failure of the City or Contractor to insist upon the strict perfor- mance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred, shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 15.0 SAFETY /PERFORMANCE. The Contractor shall perform the work in a safe and workmanlike manner. The Contractor shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. 16.0 SUSPENSION OR TERMINATION. 16.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Contractor a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Contractor and the City, offset by any amounts owed to the City. However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 16.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Contractor will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Contractor can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Contractor without further compensation. vmd Page 5 of 9 16.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Contractor shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 17.0 EQUAL EMPLOYMENT OPPORTUNITY. The Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, martial status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Contractor shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. 18.0 NO ASSIGNMENT OR DELEGATION. The Contractor may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 19.0 INDEPENDENT CONTRACTOR. The Contractor shall be an independent contractor in the performance of the work under this Agreement, and shall not be an employee or agent of the City. 20.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Contractor shall pay all federal, state and local taxes incurred by the Contractor and shall require their payment by any other persons in the performance of this Agreement. 21.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Contractor. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. Page 6 of 9 1�� 22.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All previous or concurrent agreements, representations, warranties, promises, and conditions ,,,d relating to the subject matter of this Agreement are superseded by this Agreement. 23.0 COMPLETION OF WORK. TERM OF AGREEMENT. The Contractor shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 24.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 25.0 CHANGES IN SCOPE OF WORK. 25.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Contractor do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and /or omissions by the Contractor, will be done at the sole expense of the Contractor. 25.2 Changes in Scope of Work. The City or its representative may, at any time, by a written Change Order delivered to the Contractor, make changes to the scope of work, or authorize additional work outside the scope of work. 25.3 Compensation to the Contractor. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 25.4 Any claim by the Contractor for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Contractor of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and Page 7 of 9 act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 24.0 of this Agreement. 26.0 LIMITATION OF FUNDS. 26.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 26.2 Change orders issued pursuant to Section 25 of this Agreement shall not be considered an authorization to the Contractor to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 26.3 Nothing in this Section shall affect the right of the City under Section 16 to terminate this Agreement. 27.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 28.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward Harmon Construction Inc. City Manager Owner /Director, Larry Harmon PO Box 167 PO BOX 1650 Seward, Alaska 99664 -0167 Seward, Alaska 99664 -1650 Page 8 of 9 IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward Harmon Construction Inc. �- By: Jim Hunt By: Larry Har on Title: City Manager Title: Owner /Director Date: Date: /q /., ATTEST: Brenda Ballou Acting City Clerk (city seal) Ned Page9of9 t `D Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A REVISED CONTRACT WITH THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW) EFFECTIVE JULY 1, 2013 AND ENDING JUNE 30, 2016 WHEREAS, the City of Seward and the IBEW have negotiated and agreed upon a new contract governing the wages and working conditions for electrical linemen and operators employed by the City; and WHEREAS, the City and the Union have tentatively agreed to the terms and conditions as outlined in the attached contract which expires June 30, 2016. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into an agreement, in substantially the form presented at this meeting, with the International Brotherhood of Electrical Workers effective Ikire July 1, 2013 and continuing until June 30, 2016. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of June, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor ��l Agenda Statement Meeting Date: June 24, 2013 a F sel 9 To: City Council : r • * OA " Through: City Manager Jim Hunt 41 • From: Electric Utility Manager John Foutz Agenda Item: Approval of 2013 -2016 IBEW Contract BACKGROUND & JUSTIFICATION: The attached contract is the result of several days of negotiations and is a "tentative" agreement between the City of Seward and representatives of the IBEW. John Foutz, Manager of the electric utility, was the lead negotiator for the City of Seward and was joined on the negotiating team by Rob Johnson, Attorney, Kim Kowalski- Rogers, Accounting Supervisor, and Kris Erchinger, Finance Director. The IBEW was represented by Julius Matthew, Business Representative, Dennis Traylor, Business Representative, Ben Luna, Journeyman Lineman and Cuno Hansen, Acting Shop Steward. Both sides were cooperative, productive and efficient in the negotiations. The new contract has an effective date of July 1, 2013 and will continue through June 30, 2016. Estimated wages and benefits will need to be re- calculated from July 1, 2013 to the end of the year. The agreed changes in the contract are as follows: • The addition of a new Section 3.1 (e) Cut Branch Disposal Employee; which will allow the City electric department to temporarily hire personnel to pick up and dispose of branches cut ,,d by the linemen at a rate of fifty percent (50 %) of the journeyman linemen wage rate. • The Union agreed to additional language to clarify minimum call -out periods. • The City agreed to an increase in the Unions Pension Fund Contribution of Fifty Dollars ($50) per year starting July 1, 2013 and ending June 30, 2016. • The City agreed to a base wage rate of $43.22 (an increase of 2.6% over last year) effective July 1, 2013, with annual raises during the term of the contract of the Anchorage Cost of Living Allowance (COLA) with a minimum of 0.5% and a maximum of 3.0 %. • The addition of a new Section 12.4 Movement of Monies which allows the union employees to redirect all or a portion of future wage increases to their pension fund. The wage and benefit amendments essentially preserve the status quo of controlled annual adjustments that would have prevailed had the prior three -year contract continued in effect. INTENT: Protect the interests of the City while reasonably providing fair and equitable treatment to the union employees employed by the City of Seward. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan: X t), Strategic Plan: The mission of the City of Seward government it is to ' 2. provide quality leadership and economic wellbeing of its citizens. X 3 Other (list): FISCAL NOTE: The financial impact of these changes are approximately $7500 in 2013 and $15, 100 in 2014. The hiring of individuals to dispose of cut branches would add to this cost. Approved by Finance Department: A , itelbsia ATTORNEY REVIEW: Yes X* No *The new contract has been reviewed by the City hired Negotiating lawyer. (A -i- RECOMMENDATION: City Council approve Resolution 2013- authorizing the City Manager to enter into a new three year contract with the International Brotherhood of Electrical Workers (IBEW) effective July 1, 2013 and continuing through June 30, 2016. ``••, AGREEMENT COVERING TERMS AND CONDITIONS OF EMPLOYMENT Between THE CITY OF SEWARD Seward, Alaska And LOCAL NO. 1547 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS AFL -CIO Anchorage, Alaska Expires June 30, 2016 tuk TABLE OF CONTENTS AGREEMENT COVERING TERMS AND CONDITIONS OF EMPLOYMENT 1 ARTICLE I 2 SCOPE AND DURATION OF AGREEMENT 2 SECTION 1.1 TERM OF AGREEMENT. 2 SECTION 1.2 No STRIKE PROVISION 2 SECTION 1.4 BINDING AGREEMENT ARTICLE 2 3 CITY UNION RELATIONS 3 SECTION 2.1 BARGAINING UNIT DEFINED. 3 SECTION 2.2 DISPATCHING NEW EMPLOYEES 4 SECTION 2.3 CITY - UNION RELATIONSHIP 4 SECTION 2.4 UNION EXAMINATION OF NON -UNION EMPLOYEES 4 SECTION 2.5 LEAVE OF ABSENCE FOR UNION OFFICERS. 4 ARTICLE 3 4 APPOINTMENT AND TENURE 4 SECTION 3.1 EMPLOYEE CLASSIFICATIONS. 4 SECTION 3.2 SHOP STEWARD. 7 SECTION 3.3 POSTING AND RULES 7 SECTION 3.4 ACCESS TO CITY PROPERTY BY UNION REPRESENTATIVE. 7 SECTION 3.5 LOANING UNION MEMBERS TO OTHER EMPLOYERS. 7 SECTION 3.6 UNION RIGHTS TO DISCIPLINE ITS MEMBERS. 7 SECTION 3.7 NOTICES 8 SECTION 3.8 CONTRACTING AND SUBCONTRACTING. 8 ARTICLE 4 8 LEAVE AND HOLIDAYS 8 SECTION 4.1 HOLIDAYS. 9 SECTION 4.2 PAID LEAVE. 9 SECTION 4.3 LEAVE WITHOUT PAY 11 SECTION 4.4 SPECIAL LEAVE CATEGORIES 12 SECTION 4.5 BENEFITS WHILE ON LWOP 13 SECTION 4.6 APPLICATION OF LAW. 13 ARTICLE 5 13 HOURS OF WORK AND COMPENSATIONS 13 SECTION 5.1 SCHEDULES. 13 SECTION 5.2 OVERTIME. 14 SECTION 5.3 MEALS FURNISHED BY CITY 15 SECTION 5.4 OVERTIME FOR HOLIDAY WORK. 16 SECTION 5.5 TERMINATION PAY 16 SECTION 5.6 NOTICE TO UNION OF EMPLOYEE TERMINATION. 16 SECTION 5.7 LONGEVITY. 16 SECTION 5.8 PAY FOR WORKING IN A HIGHER JOB CLASSIFICATION. 17 SECTION 5.9 HOT STICK WORK. 17 SECTION 5.10 CALL -OUT LISTS. 17 SECTION 5.11 18 Sire 1 ARTICLE 6 19 APPRENTICE LINEMEN 19 SECTION 6.1 APPRENTICES. 19 ARTICLE 7 19 SAFETY 19 SECTION 7.1 SAFETY CODES 19 SECTION 7.2 SAFETY DEVICES 19 SECTION 7.3 TESTING OF SAFETY GEAR. 20 SECTION 7.4 PULLING CONDUCTORS 20 SECTION 7.5 WORK INSIDE ENERGIZED SUBSTATIONS. 20 SECTION 7.6 SAFETY CONCERNS 20 SECTION 7.7 SAFETY MEETINGS AND TRAINING 21 ARTICLE 8 21 DISCIPLINE 21 SECTION 8.1 USE OF CITY MATERIALS AND EQUIPMENT. 21 SECTION 8.2 EMPLOYEE COOPERATION. 21 SECTION 8.3 FAILURE TO COMPLY WITH WORKING RULES. 22 SECTION 8.4 EMPLOYEE CONDUCT. 22 SECTION 8.5 FALSIFICATION OF RECORDS. 23 SECTION 8.6 CLASS "A" COMMERCIAL DRIVERS LICENSE REQUIRED. 23 ARTICLE 9 23 GRIEVANCE PROCEDURES 23 SECTION 9.1 POLICY ON GRIEVANCES. 23 SECTION 9.2 GRIEVANCES 23 SECTION 9.3 GRIEVANCE PROCEDURE. 24 SECTION 9.4 ARBITRATION 25 ARTICLE 10 26 WORKING RULES 26 SECTION 10.1 FOREMAN /LEADMAN. 26 SECTION 10.2 CREW SIZE FOR FRAMING /ERECTING POLES. 26 SECTION 10.3 TOOLS AND CLOTHING ALLOWANCE 26 SECTION 10.4 PREMIUM PAY FOR HIGH WORK. 27 SECTION 10.5 EMPLOYEE MEALS WHILE OPERATING THE GENERATOR. 77 SECTION 10.6 GENERATION PLANT OPERATION. 27 SECTION 10.7 Low VOLTAGE SWITCHING. 28 SECTION 10.8 CONNECTS /DISCONNECTS, LOCATES AND ROUTINE SWITCHING 28 ARTICLE 11 28 MISCELLANEOUS 28 SECTION 11.1 NOTICE OF COMPENSATION OF INJURED EMPLOYEES. 28 SECTION 11.2 MISCELLANEOUS LEAVE/PAC CONTRIBUTION 28 SECTION 11.3 HAZARDS. 29 SECTION 11.4 LINEMEN'S ROOM AND LOCKERS. 29 SECTION 11.5 DELEGATION OF AUTHORITY. 29 ARTICLE 12 30 WAGES AND BENEFITS 30 Nod ii Il 6 SECTION 12.1 TRUST FUND CONTRIBUTIONS 30 SECTION 12.2 WAGE RATE. 32 SECTION 12.3 OPERATOR AND MECHANIC. 33 SECTION 12.4 MOVEMENT OF MONIES 33 ARTICLE 13 34 JOB CLASSIFICATIONS 34 SIGNATURE PAGE 35 APPENDIX "A" 36 /11 1rr► Notirr `I rr. AGREEMENT COVERING TERMS AND CONDITIONS OF EMPLOYMENT Ned Between The City of Seward and Local 1547 Seward, Alaska International Brotherhood of Electrical Workers, AFL -CIO Anchorage, Alaska THIS AGREEMENT, entered into in duplicate and effective as of the first day of July 2013, by and between the city of Seward, an Alaskan municipally owned public utility having its principal offices at Seward, Alaska, hereinafter referred to as the "City," and Local 1547 of the International Brotherhood of Electrical Workers, AFL -CIO, of Anchorage, Alaska, hereinafter referred to as the "Union," WITNESSETH THAT: WHEREAS, the City and the Union recognize that the City is engaged in furnishing an essential public service which vitally affects the health, safety, comfort and general well -being of those persons resident in the service area of the City; and WHEREAS, the City and the Union have a common and sympathetic interest in the generation, transmission and distribution of electric energy and such common interest and the public welfare will be better served by the establishment and maintenance of labor management cooperation between the City and the Union; and WHEREAS, it is the intent and purpose of the parties hereto to promote and improve industrial and economic relations between the City, its employees and the Union; to establish a basic understanding relative to rates of pay, hours of work and other conditions of employment; to provide procedures for the amicable adjustment of all disputes and grievances; and to promote and foster harmonious employer - employee relations to the mutual benefit of the City, its employees, the Union and the general public; 1 1 V2 Ni,,,, NOW, THEREFORE, in consideration of the mutual covenants herein set forth, the parties agree as follows: ARTICLE I SCOPE AND DURATION OF AGREEMENT Recognizing the mutual benefits to be secured by harmonious employer - employee relations, the City and the Union establish and endorse this Agreement. The Union recognizes that the City is a municipally owned public utility and the City recognizes that Local 1547 is part of the International Brotherhood of Electrical Workers by mutual consent. Section 1.1 Term of Agreement. This Agreement will remain in full force and effect from July 1, 2013, until June 30, 2016 and thereafter year to year; provided, however, that either party may give the other party written notice of its desire to terminate the * law Agreement or to effect changes therein. Such written notice will specify the reasons for the termination or a description of the changes desired, as the case may be, and will be served upon the other party not less than sixty (60) days prior to the end of the initial period of this Agreement or any annual extension thereof. The parties will meet to negotiate on such termination, modifications or amendments within thirty (30) days from the receipt of such notice, except that such meeting may be delayed by mutual consent. The parties agree that, while negotiating a new agreement, all provisions of this Agreement will remain in full force and effect until a new agreement is ratified or impasse is reached. Nothing herein will preclude the termination, modification or amendment of this Agreement at any time by written mutual consent of the parties. Section 1.2 No Strike Provision. There will be no stoppage of work either by strike or by lock -out because of any proposed changes in this Agreement or disputes over matters relating to this Agreement. All such matters will be settled as provided herein. 2 \101 Section 1.3 Management Rights. The right to enforce discipline; to select for employment, employ, transfer, promote or demote employees; to discharge employees for cause; to discontinue the services of temporary and probationary employees; and otherwise to manage its business and direct its working forces within the Bargaining Unit is reserved by, and is vested exclusively in, the City; provided that the right herein reserved will not be used for the purpose of discrimination against any member of the Union; and provided further that the Union may grieve pursuant to Article IX the employment, transfer, promotion, demotion, discipline or discharge of employees covered hereun- der. Section 1.4 Binding Agreement. This Agreement shall be binding upon the successors and assigns of the parties hereto, and no provisions, terms or obligations herein contained shall be affected, modified, altered or changed in any respect whatsoever by the consolidation, merger, sale, transfer or assignment of either party hereto, or affected, modified, altered or changed in any respect whatsoever by change of any kind of ownership or management of either party hereto, or by any change, geographical or otherwise, in the location of place of business of either party hereto. ARTICLE 2 CITY UNION RELATIONS Section 2.1 Bargaining Unit Defined. The City recognizes the Union as the sole bargaining agent with respect to hours, wages and other conditions of employment for all employees within the bargaining unit. The bargaining unit shall consist of all classifications of employees engaged in the operation and maintenance and other work normally performed by employees of the City -owned electrical utility and included in the classifications of Article XIII, but shall exclude administrative, supervisory and other employees; provided however, the City may employ employees not in the bargaining unit to operate the City's own generation plant in emergencies, provided bargaining unit members are not available. 3 S ao Section 2.2 Dispatching New Employees. The City shall notify the Union when new employees are needed, and the Union shall make every effort to supply satisfactory applicants. Should the Union fail to do this within forty -eight (48) hours, excluding holidays and weekends, the City may hire any qualified person it so desires. The City agrees new employees will affiliate themselves with the Union within thirty (30) days after employment. Section 2.3 City - Union Relationship. The Union agrees that each of its members who may be hired and employed by the City will work for the City and the City agrees to hire and employ members of the Union in accordance with this contract. Section 2.4 Union Examination of Non -Union Employees. The Union reserves the right to subject any non -union person hired by the City to an examination before admitting such person to membership in the Union. Such examination shall be the same as that given any Union rti,,,i member of like status and classification. Section 2.5 Leave of Absence for Union Officers. Any employee elected or properly appointed to an office in the Union which requires all of his time shall be granted leave of absence to perform such duties upon application, due consideration being given to the City's scheduling of work and the necessity for continuous operation of the utility. ARTICLE 3 APPOINTMENT AND TENURE Section 3.1 Employee Classifications. (a) Temporary Employees Journeyman Linemen and Wiremen and other classifications as set forth in the IBEW -NECA Agreement may be employed as temporary for a period not to exceed six (6) months of continuous employment. Such employees shall be subject to this Agreement as to hours of work and applicable working rules only. In addition, Temporary �,,,,, Employees shall receive the wage rates as set forth in the IBEW -NECA 4 Inside Outside Agreements as amended. The City shall pay on behalf of the Temporary Employees benefits as specified in said IBEW -NECA Agreement. Temporary Employees shall not accrue seniority, service credits, holiday pay, annual leave, jury duty or longevity, and are not considered Regular Employees. (A Temporary Employee under this subsection may be laid off or discharged for any reason or no reason.) (b) Probationary Employees: (1) Generally. A Probationary Employee is one who has been hired by the City for regular employment but who has had less than two hundred seventy (270) days continuous service with the City. All employees hired to fill a regular job will be regarded as Probationary Employees for the first two hundred seventy (270) days, except that if a Temporary Employee is hired for regular employment, such time served as a Temporary Employee shall be credited towards the employee's probationary period. During this period of probationary employment, employees may be laid off or discharged by the City for any reason or no reason. All employees hired to fill a regular job shall accrue service credits and seniority during such probationary period. This time may be extended by mutual agreement between the City and the Union. Probationary employees may accrue wd leave as provided in section 4.2, but will not be allowed to take that leave until 90 days of the probationary period has ended. (2) Promoted Employee Probationary. When it becomes clear that an employee serving a promotion -based probationary period not to exceed ninety (90) days is not performing adequately, the employee shall be so informed in writing by the City. If reassignment is found to be necessary, the employee shall be reassigned to a position in his previous job classification and his date of hire shall remain unaffected. (c) Regular Employee. A Regular employee is one who has been engaged for regular employment and completed the probationary period. (d) Casual Employee. The parties recognize that upon occasion, due to circumstances beyond the control of the City, the City must utilize a casual employee. A "casual employee" is one who is employed by the City under the following conditions: (1) Casual employees shall not displace a regular employee. 5 IDA (2) Casual employees shall be considered regular employees upon the completion of one hundred fifty (150) hours in any calendar year. (3) Casual employees shall be paid at least seventy five percent (75 %) of the base wage rate for journeyman lineman as set forth in Articles XII and XIII. (4) The City may employ casual employees without utilization of the hiring provisions of § 2.2 of this Agreement. However, the Union shall be notified as soon as possible of the need for additional temporary help and the Union will attempt to supply such help as quickly as possible to replace the casual employee. (5) Persons employed as casual employees need not affiliate themselves with the Union. (6) Casual employees shall not be entitled to fringe benefits such as pension, health and welfare, and other benefits as provided under this Agreement and shall not accrue seniority, service credits, holiday pay, w annual leave, jury duty, workers' compensation supplement, or longevity pay as provided under this Agreement. (7) The City shall upon request provide verification to the Shop Steward that casual employees have been properly compensated. (e) Cut Branch Disposal Employee: (1) Cut branch disposal employees shall be paid at least fifty percent (50 %) of the base wage rate for journeyman lineman as set forth in Articles XII and XIII. This employee will only be allowed to dispose of cut branches and vegetation on the ground. (2) The provisions in Section 3.1 (d)(1), (5), (6) and (7) applicable to casual employees shall apply to cut branch disposal employees under this Section 3.1 (e). The City may employ cut branch disposal employees without utilization of the hiring provisions of Section 2.2 of this Agreement. 6 1 a� Section 3.2 Shop Steward. The City will recognize the Shop Steward, selected in accordance with Union rules and regulations, as representative of the employees. The Union will notify the City as to the identity of the Shop Steward. The Shop Steward may not be a foreman, unless mutually agreed by the parties. Section 3.3 Posting and Rules. (a) Posting of Notices. A bulletin board shall be provided in a location mutually agreeable to the parties for the posting of Union notices and communications and, in the discretion of the Union, copies of the City's working rules. (b) City- Prescribed Working Rules. The City may prescribe working rules in addition to the working rules set out in this Agreement pertaining to safety, discipline and conduct not inconsistent with the terms of this Agreement. (c) Changes to Safety Working Rules. Any material changes or additions pertaining to generally applicable or specified safety working rules in relation to classifications in Article XIII will be mutually agreed upon by both parties. Section 3.4 Access to City Property by Union Representative. Subject to prior notice, the authorized Union representative shall be granted access to the City's property pertaining to the electrical utility. Section 3.5 Loaning Union Members to Other Employers. The City shall not loan or cause to be loaned to any other employer the members of the Union in its employ without securing permission of the Union, or if an emergency exists, as soon thereafter as possible. Section 3.6 Union Rights to Discipline its Members. The Union reserves the right to discipline its members for any violation of Union laws, rules or agreements, unless specifically waived by the City. If disciplinary action by the Union for any cause involves removing Union 1��k members from jobs, forty -eight (48) hours' notice shall be given the City before such action is taken. Unless specifically waived by the City, as a condition precedent to the removal of such Union member from employment of the City, the Union shall supply satisfactory replacement employees to the City for the period of time such Union member is removed from the job. Section 3.7 Notices. All notices required by either party shall be in writing either to the Business Manager of the Union, delivered to his office, or to the City Manager, delivered to his office, and shall be deemed given when delivered, or if mailed by certified mail, return receipt requested, the date of delivery, or if by fax transmission, provided that receipt of said fax transmission is confirmed by the receiving party. Section 3.8 Contracting and Subcontracting. (a) City Rights and Limitations. The Union recognizes that the City has statutory and charter rights and obligations in contracting for matters 'to,, relating to City operations. The right of contracting or subcontracting is vested in the City. The right of contracting or subcontracting day labor shall not be used for the purpose or intention of undermining the Union nor to discriminate against any of its members. The City further agrees that it will not layoff, assign or transfer any employees because of the exercise of its contracting and subcontracting rights. Except as provided in Section 3.1(d), the City of Seward will not transfer, assign, or subcontract any work normally performed by the bargaining unit employees to any person, firm or corporation that is not signatory to an agreement with IBEW L.U. 1547; provided, however, that letters of assent by the Union, through the Shop Steward, to allow necessary work to be done by non - members of IBEW L.U. 1547 will not be unreasonably withheld. (b) Clearing Exception. The provisions of Section 3.8 shall not apply (1) to clearing of rights of way by property owners or an association of property owners with an interest in that property or (2) when clearing of City rights of way does not constitute new construction activity. ARTICLE 4 rte„ • LEAVE AND HOLIDAYS 8 .r. Section 4.1 Holidays. ` e (a) Recognized City Holidays. The following shall be recognized as holidays with pay for all regular employees who are in a pay status the day before and the day after the recognized holiday, except as noted in Subsection (d) below: New Year's Day, President's Day, Seward's Day, Memorial Day, Independence Day, Labor Day, Alaska Day, Veteran's Day, Thanksgiving Day and the day immediately following Thanksgiving Day, one -half working day immediately preceding Christmas Day and Christmas Day. (b) Holidays Falling on a Saturday or Sunday. When a recognized holiday falls on a Saturday, the preceding Friday shall be recognized in lieu thereof and treated as a holiday with respect to overtime compensation. When a recognized holiday falls on a Sunday, the Monday following shall be recognized in lieu thereof and, treated as a holiday with respect to overtime compensation. (c) Holiday during Annual Leave A recognized City holiday which occurs during an employee's annual leave shall not be counted as .a day of annual leave. (d) Holiday Falling between Two Days of Leave without Pay. A holiday occurring between two days of disciplinary leave without pay shall not be paid. A holiday occurring between two days of voluntary or emergency leave without pay shall be paid. Section 4.2 Paid Leave. (a) Annual Leave. Each regular employee hired on or after the beginning effective date of this Agreement shall accrue annual leave at the following rates based upon initial date of employment: (1) Personnel employed up to three (3) years shall accrue one hundred sixty (160) hours per year. The minimum number of hours of annual leave that must be used per fiscal year is eighty (80). 9 \ (2) Personnel employed from three (3) to six (6) years shall accrue two hundred (200) hours per year. The minimum number of hours of annual leave that must be used per fiscal year is one hundred (100). (3) Personnel employed six (6) years or more shall accrue two hundred and forty (240) hours per year. The minimum number of hours of annual leave that must be used per fiscal year is one hundred and twenty (120). (4) If an employee is terminated by the City or leaves employment of the City on any day during the month, or if the employee shall be employed on any day other than as indicated by a full calendar month, the employee shall be entitled to the pro -rata portion of the working days actually earned. All employees shall have the privilege of accumulating annual leave up to and including seven hundred and twenty (720) hours. (5) Upon termination from the city, annual leave balance shall be paid in a lump sum together with final salary payment. (b) Leave Requests. (1) An employee must notify the proper supervisor in writing at least one day in advance when not more than two (2) days annual leave is desired. When longer periods of annual leave are desired, at least one (1) week advance notice will be given. Annual leave requested shall be granted the employee if, in the opinion of the City, the employee can be spared at the time requested. Otherwise, such requests shall be granted as soon as the employee can be spared from the employees duties. (2) If annual leave is requested due to medical necessity or health considerations the employee must notify the proper supervisor prior to start time. The City may, in its discretion, request a note from a physician or other similar source if such leave is requested for periods in excess of three work days. (c) Workforce Limits on Leave. As a general rule, no more than 25% of the work force shall be permitted to be on leave and /or leave without pay at any one time. Granting of annual leave or leave without pay for more than that recognized in the preceding sentence shall be in the sole discretion of ,.. the Utility Manager. An example of an exception to the general rule of this 10 I D. -1 subsection may be, in the absence of extraordinary conditions, allowance for two linemen to go hunting in the fall. Where necessary, the City may Ned utilize the provisions of the Collective Bargaining Agreement for the hiring of temporary employees through the IBEW (Sections 3.1 and 2.2). Section 4.3 Leave without Pay. Upon written request by the employee, leave without pay may be granted if, in the opinion of the City, the employee can be spared; provided, however, that leave without pay shall not be requested or granted until such time as all accrued annual leave has been reduced to 80 hours. Nsaid 11 1 ).20 Section 4.4 Special Leave Categories. (a) Worker's Compensation Leave. An employee injured in the course and scope of employment, and not released to work for at least light duty within the employee's normal position, as certified by a physician, psychiatrist, dentist or other such licensed professional, shall be entitled to continued pay, as set forth below, without deduction from accrued leave. (1) The amount of pay under this subsection shall be the employee's regular wage, not including overtime, less any worker's compensation benefits received as a result of the injury; paychecks by the City to the employee will be net of the workers compensation benefit payment due or expected to be due for that pay period. Such payments shall not exceed six weeks. (2) After six (6) weeks of payments have expired, the employee shall be granted leave without pay or the employee may use accrued annual leave if requested. No deduction shall be made for worker's compensation benefits received while using annual leave. `'v.• (3) Upon exhaustion of annual leave and upon satisfactory proof to the City that additional leave for medical or rehabilitation purposes, including leave allowable under state or federal family medical leave act provisions, is necessary, the City will grant such employee leave without pay until the employee returns to work; provided that such leave without pay may not exceed one (1) year. Upon expiration of said year of leave without pay, employee's employment with the City may be terminated by the City and employee waives any rights under any provision of law to challenge said termination. (b) Light Duty Option. An employee who is not injured in the course and scope of employment may request light duty rather than taking leave. lf, in the Utility Manager's sole discretion, light duty is available, the Utility Manager will make a reasonable effort to grant such request. The employee who has a certificate by a physician, psychiatrist, dentist or other such licensed professional which permits light duty, may be temporarily assigned such Tight duty. (c) Light Duty Defined. "Light duty," as used in this subsection 4.4, 12 X14 refers to other duties as may be temporarily assigned by the Utility Manager which, as directed by the Utility Manager, do not involve or Nigod require physical activities which the certificate by a physician, psychiatrist, dentist or other such licensed professional describes as inappropriate to resolving the injury or condition. Section 4.5 Benefits While on LWOP. During a leave without pay period under this Article 4, no benefits will accrue or be earned except an entitlement to payment by the City of medical insurance premiums, provided that the City's contribution toward such premiums will not exceed those provided in Section 12.1(c), which will continue to be paid as long as employee is employed by the City. Section 4.6 Application of Law. The provisions of this Article 4 shall be modified by or be interpreted to comply with any conflicting state or federal law. ARTICLE 5 HOURS OF WORK AND COMPENSATIONS Section 5.1 Schedules. (a) Regular Work Day. The regular work day is eight (8) hours. The regular work day shall be from 8:00 a.m. to 5:00 p.m. if a one -hour lunch period is taken or 8:00 a.m. to 4:30 p.m. if a one -half hour lunch period is taken. (b) Regular Work Week. The regular work week shall consist of five (5) days, Monday through Friday, inclusive. A four (4) day, ten (10) hour work week may be established with mutual consent of the City of Seward Utility Manager and the Bargaining Unit. (c) Meal Time Allowance. (1) When employees are reasonably close to their starting location or where a lunch is available, such as a restaurant, at the lunch time the City will allow the use of light City vehicles to travel to and from lunch. 13 1 ?IN (2) Travel time to and from lunch or other meals will be included in ` employees meal period under 5.1(a) or 5.3. (d) Generation Operation. Line personnel, after two (2) weeks notice or two consecutive weeks of generation operation, will work scheduled shifts in order to provide around - the -clock coverage of generation operations. Operating personnel will not be scheduled to return to work without having had an eight (8) hour rest interval between periods of duty. If an operating employee has worked sixteen (16) hours or more in a twenty -four (24) hour period, he will be compensated at the appropriate rate for any portion of such eight (8) hour rest period which extends into the employees regularly scheduled work day. The shift schedule may be altered by mutual consent. No employee will be required to lose any working time by reason of a change in jobs or shifts, except in cases of personal convenience or preference. Employees who work on a regularly scheduled operating crew shift commencing at 3:30 p.m. and concluding at 11:30 p.m. shall receive a differential of ten percent (10 %) per hour in addition to their straight -time rate. For employees who work on a regularly scheduled operating crew shift commencing at 11:30 p.m. and concluding at 7:30 a.m., a differential of fifteen percent (15 %) per hour in addition to the regular straight time rate No,,... will be paid. Employees caused to lose days off, including "off- duty" days under the preceding paragraph, because of short notice or shift change will be paid at the overtime rate for hours worked. Section 5.2 Overtime. (a) Calculation. All work in excess of the above eight (8) hour day shall be considered overtime and paid for at double the regular hourly rate with the time calculated to the nearest tenth (1/10) of an hour. (b) Minimum Call -out Period. No employee covered by this Agreement shall be called to work outside the employee's regular shift for less than two (2) hours paid for at the rate of double the regular hourly rate. If an employee is called out after regular work hours and then required to respond again within two hours, the minimum two hours still applies and no additional call -out exists. 14 I21 In the case of an employee being called out, outside regularly scheduled hours, and then called out again after the two hours have expired from the first call time, a second call -out is required. In the situation of a call -out and while on the job a second circumstance occurs, the result will be a continuation of the original call -out. (c) Relief /Overlap. An employee required to work between the hours of 10:00 p.m. and 5:00 a.m. shall not report to work the next day following until he has had eight (8) consecutive hours relief; provided, however, that such employee shall be paid at his applicable straight -time rate for that portion of the rest period that overlaps into his regular work day. If, however, the employee is required to work during that overlap period, the employee will be paid double the employee's regular straight time rate for that overlap period. (d) Early Call -Out. An employee called to work between the hours of 5:00 a.m. and 8:00 a.m. shall receive double the employee's regular straight time rate. The employee will revert to the employee's straight time rate at 8:00 a.m. on the employee's normal scheduled workday. Missed breakfast will be compensated in compliance with Section 5.3 of this 'NS Agreement. Section 5.3 Meals Furnished by City. When an employee is required to work more than two (2) hours in excess of the employee's regularly scheduled shift, or four (4) hours or more after a call -out, then during those periods of work the employee shall be furnished a meal by the City on the City's time at the applicable rate and every four (4) hours, after each meal, until relieved. Eating shall be accomplished as quickly as reasonably possible, not exceeding one (1) hour if returning to work after eating. One -half (1/2) hour shall be permitted, also at the applicable rate, if the employee eats after the employee has finished work. The employee also shall be permitted to elect to take an "in lieu of meal" allowance of Twelve Dollars and Fifty Cents ($12.50) and one -half (1/2) hour at the applicable rate. An Eighteen Dollar ($18.00) ceiling is established for meals that are eaten. If a call -out has caused a worker to miss breakfast at home, the City will provide this meal and the time to eat it. 15 120 *taw Entitlement to meal money will be noted on the time card and certified by the appropriate supervisors and will be paid concurrently with the wages for the same day. Section 5.4 Overtime for Holiday Work. When an employee is required to work on a paid holiday listed in Section 4.1 hereof, subject to the conditions therein stated, the employee will be paid the appropriate straight time for the holiday and, in addition, the employee will receive double the appropriate straight time rate for the time worked. Section 5.5 Termination Pay. When an employee is laid off or quits work, the employee shall receive all accrued earnings not later than twenty -four (24) hours from the time of termination of employment, except when the day following the termination is a Saturday, Sunday or legal holiday, in which case the employee shall receive accrued earnings on the following work day. Section 5.6 Notice to Union of Employee Termination. No employee shall be terminated or suspended unless written notice is immediately sent to the Union setting out the cause for such termination. Section 5.7 Longevity. Active employees hired before January 1, 2008, shall receive, after one year's service (January 1- December 31), a longevity bonus in the amount of one percent (1%) of the employee's straight time rate of pay calculated at 2,080 hours. For accounting purposes, and so that the employee shall have an additional check at Christmas time, all longevity bonuses shall be paid once each year on the first pay day of December. Active employees hired after January 1, 2008, shall receive, after two year's service (each year being measured January 1- December 31), a longevity bonus in the amount of one percent (1%) of the employee's straight time rate of pay calculated at 2,080 hours. For accounting ', purposes, and so that the employee shall have an additional check at 16 rr► Christmas time, all longevity bonuses shall be paid once each year on the first pay day of December. Section 5.8 Pav for Working in a Higher Job Classification. If an employee is required to work at a classification higher than that in which the employee is normally employed, the employee will be paid at the higher rate normally paid for that higher classification for a period of not less than one hour. Section 5.9 Hot Stick Work. Premium pay for hot -stick work will be allowed to crews while working with such equipment on voltages in excess of 5,000 volts, except that the changing out of dead end insulators or conductors energized at 5,000 volts will be paid at the hot -stick rate. Hot -stick work will not include the opening and closing of switches, the removal and replacement of fuses or the lifting and replacing of hot -taps when hot -line clamps are used. Hot -stick compensation will be fifteen percent (15 %) above the applicable hourly rate. Section 5.10 Call -Out Lists. (a) Call -Out List. A current call -out list will be made available to the City. A new list will be presented prior to expiration of the previous list with the names and phone numbers of the two (2) Linemen covering call -outs for seven (7) days of the week. When a Lineman finds it necessary to switch the employees assigned call -out day or days with another employee, the City police dispatcher shall be notified. A Lineman who has called in sick and taken annual leave for that purpose shall be replaced on the call -out list and the City notified of the replacement's name. The Foreman and Shop Steward shall determine which two (2) Linemen will be on the call -out list. Each of the two (2) Linemen designated on the call -out list shall receive one (1) hour of overtime pay for each day they are available to respond to call -outs or two (2) hours of overtime pay for each Saturday, Sunday or holiday on which they are available to respond to call - outs. If the City reduces the number of Linemen below four (4) for a continuous 17 zu period of time exceeding thirty (30) days, the parties agree to re -open negotiations solely on the issue of the amount of payment for standby hours under this Section 5.10(a). Such re- opener will not, in the absence of a mutual agreement, cause any other provisions of this Agreement to be reopened. (b) Coverage. The list of available employees under this subsection 5.10 shall allow for coverage of emergencies from 8 a.m. Tuesday to 8 a.m. the following Tuesday. (c) Response by Other Employees. Those employees in town shall respond when the call -out crew needs additional help to maintain or restore power. (d) Calls to Listed Crew. If the City is unable to contact a Lineman on the "call -out" crew within 15 minutes of the first attempt by radio and/or telephone, another crew member will be called out. Nothing in this section will require the City to pay stand -by pay to any employees other than those listed on the call -out list provided to the City by the Foreman and Shop Steward. (e) Response Time. An employee on on -call status must respond by appearing at the employee's normal show -up within 45 minutes of the dispatch call. Failure to respond may result in discipline and will result in forfeiture by employee of stand -by pay on that day. Section 5.11 (a) Travel Insurance. The City will maintain insurance coverage which provides that, in the event an employee subject to this Agreement dies from injuries suffered as a result of the employees being required to travel in the scope of the employee's employment at the direction of the City, the total sum of $100,000 will be paid to his beneficiary or beneficiaries as designated by the employee. (b) No Flying Roster. An employee subject to this Agreement who does not wish to be assigned to work of the City requiring the employee to travel by aircraft will signify that wish by signing a "No Flying Roster" to be maintained by the City. The employees whose names appear on the "No „. Flying Roster” will not be assigned to work of the City requiring travel by 18 rkir aircraft. Two flying rosters will be maintained; one fixed wing, the other rotary (helicopters), and any employee will be allowed to change the employee's status once annually. ARTICLE 6 APPRENTICE LINEMEN Section 6.1 Apprentices. An apprentice is an employee who has been properly indentured by the Alaska Joint Electrical Apprenticeship Trust. All apprenticeship training will conform to the Alaska Electrical Industry Apprenticeship Standards, as formulated by the Anchorage Electrical Joint Apprenticeship Committee in cooperation with the Bureau of Apprenticeship and Training, United States Department of Labor. In recognition of the nature of such apprenticeship Niid employment, the City agrees that wages and benefits, ratios and other working conditions described in the IBEW /NECA Outside Construction Agreement apprenticeship sections shall apply. ARTICLE 7 SAFETY Section 7.1 Safety Codes. All electrical work shall be executed in a safe and proper manner, consistent with the requirements of the State of Alaska Electrical Safety Code and the National Electrical Safety Code. A copy of the National Electrical Code and the National Electrical Safety Code shall be available at least in the Utility's administrative offices. Section 7.2 Safety Devices. The City shall furnish such safety devices (other than clothing) and first aid kits as may be needed and requested for the safety and proper emergency 19 medical treatment of the employees. All rubber gloves, coats, hats, boots No and all other necessary rubber equipment for the protection of men working on live equipment shall be used by the employees at all appropriate times. Section 7.3 Testing of Safety Gear. The Line Foreman shall, as a safety measure, see that all protective devices for handling high voltages are kept clean and in good condition. Rubber gloves shall be subjected to tests every month, and an air test before each use, and shall be kept clean, dusted with talcum powder and carried in a suitable bag provided for that purpose only. Hand lines and tackle shall be kept in good repair. Section 7.4 Pulling Conductors. (a) Wire Reel Work. Workmen watching wire reels where conductors are pulled in on the same line of poles or where they may come in contact with any other conductors carrying 600 volts or greater shall be journeymen and there shall be grounded metal sheave block between the reel and the first line support. Now (b) Energized Circuits. On all energized circuits of 600 volts or greater, as a safety measure, two journeymen, must work together or a journeyman and a "hot" apprentice. Section 7.5 Work inside Energized Substations. Except for operation and maintenance of the generator engines and the exceptions otherwise contained in this agreement, all work performed inside energized substations and switchyards shall be done by journeyman linemen or qualified employees. Nothing herein precludes Management personnel from being in substations or switchyards. Work that needs to be done in substations and switchyards that requires carpenters or other crafts shall have a journeyman lineman or other qualified employee present at all times while such work is being performed unless the work site can be separated from exposed energized conductors exceeding 600 volts by a physical barrier. Such barriers may be a temporary fence or the containment of the work within a building. L.. Section 7.6 Safety Concerns. 20 12-1 rr► (a) Employee to Determine if It Is Safe to Work. The lineman himself Niad shall be the judge as to whether or not extreme weather or other abnormal conditions are suitable for the performance of dangerous or hazardous work when working any voltage. (b) Rubber Required for Certain Work. Rubber shall be required when a lineman is working around and between conductors on all voltages and rubber shall be applied with rubber gloves up to and including 5,000 volts between phases. (c) Hot Stick Work. All grounded circuits in excess of 5,000 volts shall be worked using hot sticks. (d) Work Requiring Rubber Gloves. Voltages of 5,000 volts or Tess may be worked with rubber gloves. Section 7.7 Safety Meetings and Training. (a) Weekly Safety Meeting. The Union will plan and conduct a one (1) hour safety and job- training program each week and will provide the City with a copy of the schedule and minutes of the weekly training. (b) Annual CPR and Pole -Top Training. Each year, the City will schedule during normal working hours a First Aid and CPR training course, as required by the State Department of Occupational Safety and Health, and a minimum of four (4) hours of pole -top training, and employees shall attend and be capable of performing such operations. ARTICLE 8 DISCIPLINE Section 8.1 Use of City Materials and Equipment. Employees shall not use the City's time or material for other purposes than those authorized, nor shall they be careless or abusive of materials and equipment. Section 8.2 Employee Cooperation. Full cooperation from all employees shall be expected, except that no employee shall be expected to do work or assume responsibility for which NS 21 1 3�Z another employee receives a higher wage rate, unless he is paid the higher wage rate. Section 8.3 Failure to Comply with Working Rules. Failure of an employee to comply with written working rules and safety practices and regulations shall be considered insubordination. Such rules and regulations shall be accessible to all employees concerned. Section 8.4 Employee Conduct. (a) Professional Conduct. All employees shall be required to carry out their duties in a courteous and businesslike manner, particularly where the public is concerned. (b) Substance Abuse. No employee shall be considered competent if found under the influence of alcohol or drugs while on duty, or on stand -by status, or who fails to report for work because of over - indulgence in alcohol or drugs. Management may require that an employee submit to drug testing if a management representative has reasonable grounds to suspect 1116., than an employee is under the influence of or using drugs, the use of which is illegal or unsafe under the circumstances, while on the job. The management representative must have received training in the signs of drug and alcohol intoxication in a training program endorsed or conducted by the City, except that training is not a prerequisite in situations where the employee's drug or alcohol use or impairment would be obvious to a person of ordinary intelligence and perception. An employee suspected of using or being under the influence of controlled substances or alcohol will be suspended (with pay for the first 10 working days) pending Employer's receipt of the test results from the laboratory. It will be the responsibility of the employee to notify the laboratory of any prescription or non - prescription medication the employee is taking. Employees will be allowed to utilize their annual leave or leave with out pay, once in any three year period, to pursue an appropriate program of treatment, subject to any other limitations under this Agreement on time allowed for leave. 22 Section 8.5 Falsification of Records. An employee found to have knowingly falsified employment, time, operating or maintenance records or any other records required to be kept by the employee shall be subject to discipline up to and including dismissal from employment. Section 8.6 Class "A" Commercial Drivers License Required. The possession of a valid Class "A" Commercial Drivers License shall be a condition of employment, and the loss of such license shall be grounds for termination. If, in the opinion of the Utility Manager, reasonable accommodation can be made, an employee who loses his Class "A" Commercial Drivers License shall retain his employment status with the City. ARTICLE 9 GRIEVANCE PROCEDURES Section 9.1 Policy on Grievances. The parties hereto recognize that the prompt and equitable settlement of grievances is essential to the maintenance of sound labor relations. The parties further recognize that such grievances are usually more satisfactorily and expeditiously settled by discussion with the City's Utility Manager. Every reasonable effort will be made by the Shop Steward, in cooperation with the Utility Manager, to correct violations and infractions of this Agreement. The Shop Steward, upon request to the Utility Manager, shall be given a reasonable amount of time during working hours, and without loss of pay, to handle grievances at Steps One, Two and Three pertaining to his area of responsibility. During outages and other emergencies, the Shop Steward will be required to give priority attention to the City's business in the Article IX; "Utility Manager" means as appropriate the Utility Manager or the Utility Manager's designated representative. Section 9.2 Grievances. A grievance is hereby defined as an alleged violation of the terms of this Agreement. Any employee or group of employees may file a grievance for 23 V-)10 an alleged violation by the City of the terms of this Agreement. The City % may file a grievance for an alleged violation by the Union of the terms of this Agreement. Being an alleged violation, it shall be a practice of work first, grieve later. Section 9.3 Grievance Procedure. A grievance shall proceed according to the following steps to seek a satisfactory settlement of the grievance. The grievance time schedule will begin when the applicable grievant or representative becomes aware or reasonably should have become aware of the alleged violation. To provide the best opportunity for the grievance to be solved at the lowest level, none of the following steps shall be omitted, except that a grievance by the City shall commence at step two. Step One: The employee and shop steward shall discuss the grievance with the Utility Manager. If the employee, shop steward, and Utility Manager fail to agree on the matter, Step Two will be followed. Step Two: The shop steward on behalf of employee grievant' or the City if Sow it is a grievant shall state the grievance in writing. The statement will include the following: (a) The nature of the grievance and the circumstances out of which it arose, including the date of occurrence. (b) The remedy or correction the respondent is requested to make. (c) The section or sections of the Agreement relied upon, or alleged to have been violated. (d) The signature of the grievant and the shop steward or union representative and /or Utility Manager or his representative. (e) The date the statement of the grievance was prepared. (f) The written statement of an employee grievance shall be turned over to the Union's Business Manager or representative to be presented to the Employer's designated representative within fifteen (15) calendar days of the occurrence; the City's written statement of a City grievance shall be 24 1.1 turned over to the Union's Business Manager or representative within fifteen (15) calendar days of the occurrence. Step Three: The Union and the Utility Manager will have fifteen (15) calendar days to discuss the grievance, hold meetings, and try to come to a mutually agreeable settlement. Within fifteen (15) calendar days after the aforementioned discussion period, the respondent party will provide written statement of that party's position on the grievance to the grieving party. The Utility manager or the Union will have ten (10) working days to respond to information requests from the other party, unless an extension is mutually agreed upon; provided that response time for information request will not affect other time requirements in Step Three. Step Four: If the grievance is not resolved at Step Three, either party may submit the matter to arbitration within seven (7) calendar days from the date either party receives the other's written step three statement. Section 9.4 Arbitration. (a) Selection. If a request for arbitration is tendered, the Union and the Utility Manager shall, within five (5) calendar days, meet to agree on a mutually acceptable Alaska arbitrator. If no agreement can be reached, the grieving party shall within thirty (30) calendar days thereafter request a list of ten (10) arbitrators from Alaska from the American Arbitration Association. The arbitrator shall be selected within five (5) calendar days after receipt of the American Arbitration Association list by the striking method from that list. The parties shall utilize a coin toss to determine the order of striking and then alternate in striking names from the list of arbitrators until one arbitrator remains who shall be the arbitrator for the dispute. The grieving party shall notify that arbitrator of appointment within five (5) calendar days of selection. The parties shall endeavor to hold the arbitration within ninety (90) days following the notice of appointment to the arbitrator unless otherwise agreed by the parties and the arbitrator. The expenses of the arbitrator and the American Arbitration Association shall be shared by the parties. (b) Authority of the Arbitrator. The arbitrator shall conduct a hearing according to the American Arbitration Association Standards and Procedures for Arbitration. The arbitrator shall have no authority to add to, alter, delete or modify this Agreement. The decision of the arbitrator shall Ne d 25 lam. be final and binding on all parties. (c) Time Limits. Failure of either party to act within the time schedule set forth in this procedure without the express written agreement of the other party will be considered a default and the grievance shall be considered to be settled in favor of the non - defaulting party. The parties may mutually agree in writing to modify the time limits of any step of the grievance procedure. The mailing of the grievance appeal or answer shall constitute a timely appeal or response if postmarked within the appeal period. ARTICLE 10 WORKING RULES Section 10.1 Foreman /Leadman. (a) Line Foreman. A Line Foreman is a working journeyman who has been a journeyman for at least three (3) years in the branch of the trade in which the employee is directing one crew. If the employee directs more than eight (8) other employees, the employee will not work except in emergencies which threaten life or property, except for incidental N assistance which does not distract from the employees primary function. When any work is being done on or within the reach of a primary voltage, the Foreman's primary function is to be in a position to observe the work being done and give advice in regard to safety. (b) Leadman. A Leadman is a working journeyman who has been a journeyman for at least three (3) years in the branch of the trade in which the employee is directing at least one other journeyman but not more than three (3) other employees. Section 10.2 Crew Size for Framing /Erecting Poles. Framing poles, boring and fitting arms, making of guys and setting anchors shall be done by qualified employees. Any crew erecting poles shall consist of at least one journeyman in addition to the Foreman, except, in the primary area, the majority being linemen, including the Foreman. Section 10.3 Tools and Clothing Allowance. Wiremen shall furnish their own pocket tools. NECA employees will 26 provide their own tools. The City shall annually furnish each regular employee who is a journeymen lineman with all other hand tools including two (2) pairs of leather gloves; provided that commencing January 1, 2008, regular employees who are journeymen linemen will be provided hand tools on a replacement basis, which will be only if broken or lost in a manner not caused by the negligence of that employee. The City will continue to provide all employees with 2 pairs of gloves annually. Commencing January 1, 2009 (a) the City shall provide each regular employee lineman an annual allowance of $250.00 for the purchase of clothing appropriate for the job, as prescribed by OSHA and NESC and (b) each employee shall be required to provide, use and maintain such clothing in good and safe condition. If there is a change in the current past practice in the requirements of employees wearing FR clothing, the parties agree to reconvene the negotiations to renegotiate Section 10.3 of this collective bargaining agreement. This session of negotiations will be subject to Mediation by the Federal Mediation & Conciliation Services (FMCS) if an agreement can't be reached. Finally Arbitration will be used to reach an agreement in accordance with the grievance procedure in this contract if FMCS fails to fir' reach an agreement. Section 10.4 Premium Pay for High Work. All work sixty -five (65) feet above ground level shall be paid at the overtime rate while working such height. Section 10.5 Employee Meals While Operating the Generator. Employees operating the generation plant may eat their meal on working time, but at a time so as not to interfere with efficient operation of the generation plant. Missed meals will be paid at $12.50 with no additional time allowed. Section 10.6 Generation Plant Operation. 27 l�t�l Any time the City is operating its own generation plant; two (2) qualified r,,,, persons will operate the plant. Such persons, if not employees under the Agreement, will be paid the rate for operator and mechanic specified in Article XIII. So long as the generation plant switch gear remains substantially in the form on the date of this Agreement, at least two qualified persons will be so employed; at such time as the generation plant switchgear is modified in a fashion requiring fewer than two qualified persons, the City may in its discretion assign fewer than two qualified persons to operate the generation plant. Section 10.7 Low Voltage Switching. One journeyman lineman may perform low voltage switching such as opening and closing power circuit breakers, setting reclosers on next trip lock -out or ground trip switches, or setting load tap changers to manual or automatic, provided the lineman has two -way communications with the city dispatcher or line crew foreman. Operators may switch in substations that are adjacent to and part of an established powerhouse. Section 10.8 Connects /Disconnects, Locates and routine switching One journeyman lineman shall perform the work and may work as a one - man crew when executing connects and disconnects (meter installation, removal and booting) locates, inspections, routine switching of circuits (sec. 10.7), line patrol and emergency repair to the extent necessary to safeguard the general public. ARTICLE 11 MISCELLANEOUS Section 11.1 Notice of Compensation of Injured Employees. The details of any provisions made by the City for the compensation of injured employees shall be furnished to the Union and shall also be kept posted in a place accessible to all employees covered by this Agreement. Section 11.2 Miscellaneous Leave /PAC Contribution. (a) Jury Duty Leave. An employee who is called for and performs jury duty will be compensated by the City for the difference between payment 28 I�-1� received for such jury duty (excluding travel and subsistence allowances) and the payment the employee would have received for the straight time hours the employee was thereby required to lose from the employee's regular work schedule, but not to exceed five (5) eight hour days per week, computed at the employees established hourly wage rate. Differential payment shall continue so long as such jury duty continues and upon documentary proof of jury duty and the payment received therefore. Continuous service, annual leave and duly established seniority privileges will accumulate during such leave. (b) Voting Leave. Voting time off will be given in accordance with the City's Personnel Code, as amended from time to time. (c) Political Action Fund Contribution. With voluntary authorization by an employee on a form supplied by the Union, the City agrees to deduct $0.07 per hour from the employee's wages to be submitted to the IBEW Local Union 1547 for its Political Action Fund. This money will be sent in monthly with the dues and shall be made by the fifteenth (15th) of the month following which the deduction was made. Section 11.3 Hazards. (a) Inclement Weather. Employees who report for work on a scheduled work day and who, because of inclement weather or comparable reasons, are unable to discharge the usual duties assigned to them by management, will be paid for such day at the applicable rate; provided, however, that such employees may be assigned to other work within or below their job classification or participate in training and instruction pertinent to their employment, including first aid, safety and hot -stick work. (b) Hazardous Materials. Employees required to work with hazardous material shall be supplied with all necessary protective equipment. Section 11.4 Linemen's Room and Lockers. The City shall furnish a linemen's room with lockers for clothes, tools, etc., and facilities for drying clothing and equipment. Section 11.5 Delegation of Authority. 29 �U *,,,. Delegation of authority shall be from an appropriate City representative to a foreman or Ieadman who, in turn, will instruct journeymen, operators, apprentices or other employees as assigned. ARTICLE 12 WAGES AND BENEFITS Section 12.1 Trust Fund Contributions. (a) Pension Fund. (1) The City agrees to participate in, and contribute to, the Alaska Electrical Pension Fund (AEPF), and Alaska Electrical Workers Money Purchase Pension Plan (AEWMPP) trust funds which were established pursuant to: 1) an agreement between the Union and the Alaska Chapter of the National Electrical Contractors Association, Inc.; and 2) that certain declaration of trust entered into by the aforesaid parties for the purpose of providing pension benefits for those persons covered by said agreement. (2) Effective July 1, 2013 and subject to the maximum amount set forth below, the City will pay into the AEPF the sum of five and 78/100 Dollars ($5.78) for each compensable hour earned in a month by an employee in a job classification listed in Article XI II herein. Effective July 1, 2014, the foregoing hourly rate shall increase to six and 07 /100dollars ($6.07), and effective July 1, 2015, said rate shall increase to six and 36 /100dollars ($6.36). Notwithstanding the forgoing hourly rates for a compensable hour, the monthly payment for an employee will not exceed the amount prescribed for a particular month as follows: (A) One Thousand Dollars ($1000.00) for each month in which that employee is so employed through June 30, 2014 (B) One Thousand Fifty Dollars ($1050.00) for each month in which that employee is so employed from July 1, 2014 through June 30, 2015; and 30 (C) One Thousand One Hundred Dollars ($1100.00) for each month in which that employee is so employed after July 1, 2015. The City will pay into the AEWMPP the sum of Two Hundred Twenty -five Dollars ($225.00) per month for those employees in job classifications listed in Article XIII herein. (3) The foregoing payments [TO THE FUND,J made by the City, will entitle said covered employees of the City to pension payments under such terms and conditions that may be lawfully provided for by the administration and management of said funds. The City's liability shall be limited to making the foregoing payments. (4) All payments due under this Section 12.1 are payable to said fund on or before the 15 day of the month following the month in which said compensable hours were earned by the City's said employees. If an employee is terminated by the City or leaves employment of the City on any day during the month, or if the employee shall be employed on any day other than as indicated by a full calendar month, the employee shall be entitled to the pro -rata portion of the working days actually earned, all payments due hereunder. ,,, (5) " Compensable hour" as used in this Section 12.1 shall mean only straight -time or overtime hours actually worked, standby time measured in hours, and annual leave taken; for clarification, compensable hour does not include other categories of time including but not limited to, leave without pay time, workers' compensation time or meal allowance time. (b) Health Insurance and Money Purchase Plan. The City agrees to participate in and contribute to the Alaska Electrical Health and Welfare Trust Fund and, depending upon the Health and Welfare Flex Plan (Seward Plans 500 -505) selected by an employee, to the Alaska Electrical Worker's Money Purchase Pension Plan of the Alaska Electrical Workers Pension Fund for the purpose of providing selected benefits to the employees covered by this agreement. Beginning July 1, 2007 the City will contribute $1,128.00 per month, per employee to the Trust Funds. Any contribution required of employees to pay for health benefit premiums not covered by the amounts paid by the City under this subsection 12.1(b) may be withheld from employee paychecks and forwarded to the Trust Fund, , 31 provided that clear and uncontested notice of such amounts is provided to '40111, the City by the Trust. The City will cover up to a 7% increase in the premium, each year. Any increase above 7% will be paid by the employee. (c) IBEW Hardship and Benevolent Fund (IHBF) The City shall, beginning with the first administratively practicable pay period following notification by IBEW that a majority of bargaining unit employees elect to participate in the IHBF, deduct from members' net pay five cents ($.05) per compensable hour worked by all bargaining unit employees. These voluntary deductions will be transmitted in accordance with mutually established payroll procedures to the designated Trustee. Effective upon notification from the IBEW of favorable IRS determination, the deduction will be converted to a pre -tax deduction. This modification will be effective the first administratively practicable pay period following receipt of a copy of the IRS determination letter. The Union agrees that the City assumes no responsibility in connection with this deduction, except that of ordinary diligence and care in forwarding monies deducted as set forth in this article. The Union shall indemnify the City and save the City harmless from any and all claims against the City only for amounts deducted from earnings pursuant to this Agreement. Section 12.2 Wage Rate. The base wage rate for purposes of calculating the wages of employees covered by this Agreement shall be $43.22 per hour for the term of this Agreement. Individuals covered under the terms of this agreement shall not be entitled to receive any across - the -board pay increases granted by the City Council to all other regular City employees. Effective July 1, 2014, all journeyman linemen and wiremen shall receive an increase of the current base rate of pay or the current base rate equal to 100% of the U.S. Department of Labor Consumer Price Index for all -urban consumers for Anchorage measured from January 1, 2013 through December 31, 2013, with a minimum of .5% and a maximum of 3 %. Effective July 1, 2015, all journeyman linemen and wiremen shall receive an increase of the current base rate of pay or the current base rate equal to 100% of the U.S. Department of Labor Consumer Price Index for all -urban consumers for Anchorage measured from January 1, 2014 through 32 ("k December 31, 2014, with a minimum of .5% and a maximum of 3 %. Section 12.3 Operator and Mechanic. Operator and Mechanic is a position which will perform duties including those set forth in Appendix A. The pay rate will be 90% of the base wage rate prescribed in section 12.2. Upon completion of six (6) months wage increase to 95 %, upon completion of nine (9) months wage will increase to 100 %. This position will be entitled to benefits and rights, including rights related to resolution of any grievances, solely as provided in this Agreement; provided however that while the benefits and rights of this Agreement are intended to replace benefits and rights under the City Code, such benefits and rights under this Agreement shall not reduce or be Tess than any benefits and rights accrued through prior employment with the City. For purposes of clarity, the position will be covered under the pension plans of this Agreement and, upon eligibility for such coverage; any person in this position will take all steps and agree that all steps may be taken to terminate that person's status as an active member of the Public Employees Retirement System. Assignment of the duties to this position, including the decision to assign or apportion work for Utility purposes or for non - Utility purposes, shall be in the sole discretion of management, subject to such delegations of authority as management may determine appropriate from time to time. Section 12.4 Movement of Monies The bargaining unit shall be allowed to redirect all or a portion of future wage increases in the Alaska Electrical Pension Fund (AEPF). Any such movement of monies must be uniformly applied to all bargaining unit members. The movement will require ratification by a majority of the bargaining unit in a vote by secret ballot. The Union will give the Employer thirty (30) days' notice prior to the effective date of the wage increase. Any movement of monies under this Section shall be subject to any restrictions or other provisions of State or Federal law. 33 ISO ARTICLE 13 v JOB CLASSIFICATIONS This Article shall cover all classifications of employees covered by this Agreement. The wage rate for the classifications of employees covered by this Agreement shall be as follows: Percent of Journeyman Lineman or Wireman Base wage rate 7/01/10 $ 43.22per hour The effective wage rate (the regular or straight time hourly rate) for classifications shall be a percentage of the base wage rate as follows: Journeyman Lineman or Wireman 100% of base wage rate Line Foreman 112% of base wage rate Leadman 105% of base wage rate Operator and Mechanic (a) hired before July 1, 2010 100% of base wage rate (b) hired after July 1, 2010 90% of base wage rate for first six months, 95% of base wage rate from end of sixth month through end of ninth month, and 100% thereafter. Apprentices (See Section 6.1 of this Agreement) If employees are needed for work not listed in the classifications under this Article but for work included in the bargaining unit, they shall be paid at a negotiated rate that relates in importance to one of the classifications herein provided 34 IJr'� SIGNATURE PAGE City Of Seward International Brotherhood of Electrical Workers, Local Union 1547 Jim Hunt, City Manager Mike Hodsdon, Business Manager Date: Date: David Seaward, Mayor Julius Matthew, Business Date: Representative Date: John Foutz, Manager Dennis Traylor, Business Electric Utility Representative Date: Date: Cuno Hansen, Negotiating Team Member Date: Ben Luna, Negotiating Team Member Date: 35 Appendix "A" Operator and mechanic duties include duties performed for Utility operations such as: 1. Operation, maintenance, repair and overhaul of all motorized equipment and generators. 2. Material handling, storage and inventory control. 3. Clearing facilities and right -of -way of brush, grass and snow. 4. Traffic control, excavating /backfilling, setting electrical equipment, switching involved with generation operations. 5. May be assigned to work with line crew. 6. May be used on a "hot" crew as an equipment operator or ground man (as a fourth or fifth man). 7. May not perform any high voltage or aerial line work, including manually operated switches. 8. May operate low voltage or remotely controlled switches. 9. Other duties as assigned. *Implementation of this job description into the CBA will not prevent the City from using other City personnel to perform maintenance and repairs to City equipment, including City Utility equipment. *4 a■er `Ilry 36 INDEX AGREEMENT COVERING TERMS AND Light Duty Defined 12 CONDITIONS OF EMPLOYMENT 1 Light Duty Option 11 Annual CPR and Pole -Top Training 20 Line Foreman 25 Annual Leave 9 Meal Time Allowance 12 Appendix "A" 35 Minimum Call-out Period 13 ARTICLE 10 25 No Flying Roster 17 ARTICLE 11 27 Pension Fund 29 ARTICLE 12 29 Political Action Fund Contribution 28 ARTICLE 13 33 Posting of Notices 6 ARTICLE 2 3 Probationary Employees 5 ARTICLE 3 4 Professional Conduct 21 ARTICLE 4 8 Promoted Employee Probationary 5 ARTICLE 5 12 Recognized City Holidays 8 ARTICLE 6 18 Regular Employee 5 ARTICLE 7 18 Regular Work Day 12 ARTICLE 8 20 Regular Work Week 12 ARTICLE 9 22 Relief /Overlap 13 ARTICLE I 2 Response by Other Employees 17 Authority of the Arbitrator 24 Response Time 17 Calculation 13 Rubber Required for Certain Work 19 Call -Out List 16 Section 1.1 Term of Agreement 2 Calls to Listed Crew 17 Section 1.2 No Strike Provision 2 Casual Employee 5 Section 1.3 Management Rights 3 Changes to Safety Working Rules 7 Section 1.4 Binding Agreement 3i City Rights and Limitations 8 Section 10.1 Foreman /Leadman 25 City- Prescribed Working Rules 7 Section 10.2 Crew Size for Clearing Exception 8 Framing /Erecting Poles. 25 Coverage 16 Section 10.3 Tools and Clothing Allowance Early Call -Out 14 25 Employee to Determine if It Is Safe to Work Section 10.4 Premium Pay for High Work.26 19 Section 10.5 Employee Meals While Energized Circuits 19 Operating the Generator 26 Generally 5 Section 10.6 Generation Plant Operation .26 Generation Operation 13 Section 10.7 Low Voltage Switching 27 Hazardous Materials 28 Section 10.8 Connects /Disconnects, Health Insurance and Money Purchase Plan Locates and routine switching 27 30 Section 11.1 Notice of Compensation of Holiday during Annual Leave 9 Injured Employees 27 Holiday Falling between Two Days of Leave Section 11.2 Miscellaneous Leave /PAC without Pay 9 Contribution 27 Holidays Falling on a Saturday or Sunday . 9 Section 11.3 Hazards 28 Hot Stick Work 20 Section 11.4 Linemen's Room and Lockers IBEW Hardship and Benevolent Fund 28 (IHBF) 30 Section 11.5 Delegation of Authority 28 Inclement Weather 28 Section 12.1 Trust Fund Contributions 29 Jury Duty Leave 27 Section 12.2 Wage Rate 31 Leadman 25 Section 12.3 Operator and Mechanic 31 Leave Requests 10 Section 2.1 Bargaining Unit Defined 3 37 Section 2.2 Dispatching New Employees...4 Section 5.9 Hot Stick Work 16 Section 2.3 City - Union Relationship 4 Section 6.1 Apprentices 18 Section 2.4 Union Examination of Non- Section 7.1 Safety Codes 18 Union Employees 4 Section 7.2 Safety Devices 18 Section 2.5 Leave of Absence for Union Section 7.3 Testing of Safety Gear 18 Officers 4 Section 7.4 Pulling Conductors 19 Section 3.1 Employee Classifications 4 Section 7.5 Work inside Energized Section 3.2 Shop Steward 6 Substations 19 Section 3.3 Posting and Rules 6 Section 7.6 Safety Concerns 19 Section 3.4 Access to City Property by Section 7.7 Safety Meetings and Training 20 Union Representative 7 Section 8.1 Use of City Materials and Section 3.5 Loaning Union Members to Equipment 20 Other Employers 7 Section 8.2 Employee Cooperation 20 Section 3.6 Union Rights to Discipline its Section 8.3 Failure to Comply with Working Members 7 Rules 20 Section 3.7 Notices 7 Section 8.4 Employee Conduct 20 Section 3.8 Contracting and Subcontracting Section 8.5 Falsification of Records 21 8 Section 8.6 Class "A" Commercial Drivers Section 4.1 Holidays 8 License Required 21 Section 4.2 Paid Leave 9 Section 9.1 Policy on Grievances 22 Section 4.3 Leave without Pay 10 Section 9.2 Grievances 22 Section 4.4 Special Leave Categories 11 Section 9.3 Grievance Procedure 22 Section 4.5 Benefits While on LWOP 12 Section 9.4 Arbitration 24 Section 4.6 Application of Law 12 Selection 24 Section 5.1 Schedules 12 SIGNATURE PAGE 34 Section 5.10 Cali -Out Lists 16 Substance Abuse 21 i,,. Section 5.11 17 Temporary Employees 4 Section 5.2 Overtime 13 Time Limits 24 Section 5.3 Meals Furnished by City 14 Travel Insurance 17 Section 5.4 Overtime for Holiday Work .... 14 Voting Leave 28 Section 5.5 Termination Pay 15 Weekly Safety Meeting 20 Section 5.6 Notice to Union of Employee Wire Reel Work 19 Termination 15 Work Requiring Rubber Gloves 20 Section 5.7 Longevity 15 Worker's Compensation Leave 11 Section 5.8 Pay for Working in a Higher Job Workforce Limits on Leave 10 Classification 15 Srrr 38 Brenda Ballou From: Johanna Kinney Sent: Friday, June 14, 2013 1:50 PM To: David Seaward Cc: Brenda Ballou Subject: RE: Discussion for next Council Meeting Thank you! We'II get it on the 6/24 agenda as requested. Original Message From: David Seaward Sent: Friday, June 14, 2013 1:48 PM To: Johanna Kinney Subject: RE: Discussion for next Council Meeting It will work. Thank you David Seaward From: Johanna Kinney Sent: Friday, June 14, 2013 1:45 PM To: David Seaward Cc: Brenda Ballou Subject: RE: Discussion for next Council Meeting Okay, thanks for the clarification. `'..010 H• •• st is wording sound? "Discussion on council repealing Seward City Code 5.45, Hotel /Motel Room Tax." Let us know as soon as convenient y possi. e, : renda is pulling together the agenda and calendar to send to the newspapers shortly. Thanks! Johanna Original Message From: David Seaward Sent: Friday, June 14, 2013 1:26 PM To: Johanna Kinney Subject: RE: Discussion for next Council Meeting Discussion on council repealing section of the code. From: Johanna Kinney Sent: Friday, June 14, 2013 11:39 AM To: David Seaward Cc: Brenda Ballou 1 VS -(0 Subject: RE: Discussion for next Council Meeting Hi David, Not totally sure what you mean - do you want council to pass an ordinance repealing the section of the code? I just wrote to you in my last email that that is a council action and wouldn't go on the ballot. If the citizen's want to repeal this tax, they can put it on the ballot via initiative ordinance. Johanna Original Message From: David Seaward Sent: Friday, June 14, 2013 11:37 AM To: Johanna Kinney Cc: Brenda Ballou Subject: Discussion for next Council Meeting Madam Clerk / Deputy Clerk, Discussion for Next Council Meeting Agenda, 1. Discussion on council putting forward a Proposition for upcoming October elections to Repeal Initiative Ordinance 95- 01-INIT: Chapter 5.45 of the Seward City Code providing for Hotel /Motel Room. I would like council to consider if there's support to put this Ordinance for voters. Thank you David Seaward http: / /google.state.ak.us/ search ?q= 12AKtax &x= 52 &y =6& site = DCCED& client = DCCED &proxystylesheet =DCCED &sort =dat e %3AD %3AL %3Ad1 &output =xml no dtd&ie= UTF- 8 &oe =UTF- 8& client = StateWide &proxystylesheet = StateWide &sort= date %3AD %3AL %3Ad1 &output =xml no dtd &ie =UTF- 8 &oe =UTF -8 2 IS , June 2 013 June e 2013 Th July 2013 SuMo TuWe Th Fr Sa SuMoTuWe Th Fr Sa 1 1 2 3 4 5 6 2 3 4 5 6 7 8 7 8 9 10 11 12 13 9 10 11 12 13 14 15 14 15 16 17 18 19 20 16 17 18 19 20 21 22 21 22 23 24 25 26 27 23 24 25 26 27 28 29 28 29 30 31 30 Monday Tuesday Wednesday Thursday Friday Jun 3 4 5 6 7 7:OOpm P &Z Mtg 12:OOpm PACAB Mtg N m 10 11 12 13 14 7:OOpm CC Mtg ti 17 18 19 20 21 6:OOpm P &Z WS 12:OOpm PACAB Work 5 6:OOpm Seward Recrea 6:30pm HP Mtg N N 24 25 26 27 28 5:30pm Audit Work Se 7:OOpm CC Mtg 03 N N 7 Nanci Richey 1 6/17/2013 9:55 AM July 2013 July a 2013 Th August 2013 S uMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Jul l 2 3 4 5 12:O0pm PACAB Mtg 5:30pm Seward Rereat 8 9 10 11 12 7:OOpm CC Mtg N e-i 00 15 16 17 18 19 6:OOpm P &Z WS 12:OOpm PACAB Work 5 6:OOpm Seward Recrea 6:30pm HP Mtg 22 23 24 25 26 7:OOpm CC Mtg N 7 29 30 31 Aug 1 2 N Nanci Richey 1 6/17/2013 9:56 AM Nvad **ad