HomeMy WebLinkAbout05122014 City Council Packet .....
Seward City Council
Agenda Packet
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May 12, 2014
''r..ity Council Chambers Beginning at 7:00 p.m.
1963 1965 2005 The City of Seward,Alaska
CITY COUNCIL MEETING AGENDA
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All-AmerlaCtty
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III I {Please silence all cellular phones and pagers during the meeting} Naw
May 12, 2014 7:00 p.m. Council Chambers
Jean Bardarson 1. CALL TO ORDER
Mayor 2. PLEDGE OF ALLEGIANCE
Term Expires 2015 3. ROLL CALL
4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE
Marianna Keil ITEMS SCHEDULED FOR PUBLIC HEARING [Those who
Vice Mayor have signed in will be given the first opportunity to speak. Time is
Term Expires 2014 limited to 3 minutes per speaker and 36 minutes total time for this
agenda item.]
Ristine Casagranda 5. APPROVAL OF AGENDA AND CONSENT AGENDA
Council Member [Approval of Consent Agenda passes all routine items indicated by
Term Expires 2014 asterisk (*). Consent Agenda items are not considered separately
unless a council member so requests. In the event of such a request,
Christy Terry the item is returned to the Regular Agenda]
Council Member
Term Expires 2015 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS
David Squires A. Proclamations and Awards
*lib, Council Member
Term Expires 2015 1. Proclamation for Retirement of AVTEC Director Fred
Esposito .Pg. 4
Dale Butts 2. Harbor Opening Weekend & Blessing of the Fleet
Council Member Proclamation Pg. 5
Term Expires 2014 3. Proclamation for Seward Elementary School teacher Terri
McKnight, a BP Teacher of Excellence recipient for 2014 .Pg. 6
Iris Darling
Council Member B. Borough Assembly Report
Term Expires 2015 C. City Manager's Report
*Appointment D. City Attorney's Report
Expires 2014 E. Other Reports and Presentations
James Hunt
City Manager
Johanna Kinney
City Clerk
Eric Wohlforth
City Attorney
City of Seward, Alaska Council Agenda
May 12, 2014 Page 1
7. PUBLIC HEARINGS
A. Resolutions Requiring Public Hearing
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1. Resolution 2014-044, Authorizing The Assignment Of The Ground Lease With
Seward Ship's Drydock, Inc. For The Real Property Described As Lots 1-A And 3, Block 7,
Fourth Of July Creek Subdivision Seward Marine Industrial Center, Seward Ship's Drydock
Replat, According To Plat 2002-22, Seward Recording District, Third Judicial District, State Of
Alaska, To Vigor Alaska - Seward, LLC, Subject To Assignor Providing The City Proof Of
Environmental Liability Insurance For Four (4) Years From The Date Of Assignment, And
Authorizing The City Manager To Enter Into Amendment No. 5 To The Assigned Ground
Lease Pg. 7
8. UNFINISHED BUSINESS -None
9. NEW BUSINESS
A. Ordinances for Introduction
*1. Ordinance 2014-003, Amending Title 14 Of The City's Code Of Ordinances To
Provide For Interconnection Of Small Renewable Energy Sources To The City's Electrical
Distribution System Pg. 140
*2. Ordinance 2014-004, Amending Portions Of Seward City Code §15.10.140.B
Specific Definitions, §15.10.225 Land Uses Allowed And §15.10.225 Land Uses Allowed Table;
To Allow Mobile Vendors And Roving Vendors To Operate On City Owned Property (As ,,,,r„
Designated) And Within Public Rights Of Way Pg. 162
B. Resolutions
*1. Resolution 2014-045, Authorizing A Donation Of$2,000 To The Resurrection Bay
Historical Society To Host The Museums Alaska / Alaska Historical Society Joint Annual
Conference October 1-4, 2014 To Be Held In Seward, Alaska Pg. 170
*2. Resolution 2014-046, Approving Teen And Youth Center Day Camp FeesPg. 177
C. Other New Business Items
*1. Approval of the March 24, 2014 City Council Regular Meeting Minutes Pg. 180
2. Schedule a Work Session and council meeting presentation to review the results of
the 2013 Audit.
3. Direct a letter to be sent from the Mayor, thanking Legislators for their support of
Seward during the Alaska State Legislative Session.
4. Schedule a Work Session on alternative energy.
5. Discussion of draft policies and procedures for mobile and roving vendorsPg. 187
10. INFORMATIONAL ITEMS AND REPORTS (No Action Required)
City of Seward, Alaska Council Agenda
May 12, 2014 Page 2
A. May is Poppy Month from the American Legion Auxiliary Pg. 193
B. National Historic Preservation Month Proclamation Pg. 194
C. Letter of congratulations to Christi Bell on her recent promotion to Executive Director
of the University of Alaska Anchorage Business Enterprise Institute Pg. 195
11. COUNCIL COMMENTS
12. CITIZEN COMMENTS
13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
14. ADJOURNMENT
Skip,
City of Seward, Alaska Council Agenda
May 12, 2014 Page 3
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PROCLAMATION
WHEREAS, Fred Esposito has worked for Alaska's Institute of Technology
(AVTEC) for the past 17 years, and is considered by some to be the finest Director
that AVTEC, Seward's premier vocational-technical training facility has had since it
inception in 1969; and
WHEREAS, under Fred's direction during his tenure, AVTEC accomplished a
great number of critical endeavors, including adding new and expanding existing
programs, creating "satellite" locations throughout the state, developing web-based
training and, essentially, changing the face of AVTEC and its student population at a
record pace; and
WHEREAS, as Director of AVTEC, Fred played an instrumental role in
upgrading the welding programs, created the new mechanics training center,
launched a satellite nursing program, developed the Registered Nursing Program as
AVTEC's first degree-granting program, and updated the computer systems and
infrastructure. He is also responsible for:
• Dormitory Renovation and Expansion
• Renovated and Expanded Culinary Arts Facility -
• Wind Turbine Installation and Training Program A\
• Solar and Alternative Energy Programs
• Expanded Maritime Facilities and Training Program
• Firefighting Training Center at SMIC
• Renovated and Expanded Cafeteria
• Created and Expanded Student Family Housing
WHEREAS, Fred Esposito officially retired from AVTEC on March 14, 2014.
NOW, THEREFORE, I, Jean Bardarson, Mayor of the City of Seward, Alaska,
do hereby wish Fred Esposito well on his retirement and thank him for his many
contributions to the betterment of Seward.
DATED this 12th Day of May, 2014 THE CITY OF SEWARD, ALASKA
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%4111sv Alaska's Institute of Technology =
Jean Bardarson, Mayor
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PROCLAMATION
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WHEREAS, since the 1980s, Seward's traditional Harbor Opening has kicked off the
boating season on the third weekend in May each year; and
WHEREAS, on Saturday, May 17, 2014 there will be a full day of activities scheduled
to honor and celebrate this longstanding tradition, including:
+ Sailor's Breakfast at Sailing, Inc. at 8:30 a.m.
4• Sailor's Swap Meet at Sailing, Inc. at 10:00 a.m.
+ Military Appreciation Bar-b-Que at the Harbor Plaza at 12:00 p.m. with free
hotdogs
+ Seward Mariners Memorial Plaque Installation Service at the Mariners'
Memorial at 3:30 p.m.
+ Blessing of the Fleet at the Mariners'Memorial at 4:00 p.m.
+ Boat Parade from the Harbor entrance to the Alaska Sea Life Center and back at
4:30 p.m.
+ Harbor Opening Dance at Chinook's at 8:00 p.m. with the proceeds going to the
Seward Mariners' Memorial.
NOW,THEREFORE, I,Jean Bardarson, Mayor of the City of Seward, Alaska do hereby
proclaim the weekend of May 17, 2014 as
HARBOR OPENING&BLESSING OF THE FLEET
and invite all citizens to join in celebrating this important part Seward's rich nautical history.
Dated this 12th day of May, 2014 THE CITY OF SEWARD,ALASKA
Jean Bardarson,Mayor
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, teachers serve a significant role in helping students achieve academic
success. Great teachers inspire and challenge their students and deserve to be honored
for their excellence in education; and :-
W!IEREAb, as a city, we are proud of the educational endeavors of our teachers .,
and the leadership they demonstrate for our future generations;and
WHEREAS, the BP Teachers of Excellence Program launched in 1995 recognizes
teachers throughout Alaska for their dedication to teaching and student inspiration;and
WilL Wits: hundreds of remarkable teachers have been recognized by their
' peers, students, parents and community members throughout the history of this
P program; and
IIEREet$ each year, teachers are recognized in five Alaskan regions:
Sib, 2
Anchorage, Fairbanks, Mat-Su Valley, Kenai Peninsula, and outlying areas;and
, this year, Seward Elementary School teacher Terri McKnight was
selected as a BP Teacher of Excellence for 2014.
NOW 77 ER El VR E, I, Jean Bardarson, Mayor of Seward, Alaska, do hereby
congratulate and commend Terri McKnight for this great achievement and call upon
our citizens to congratulate her outstanding contributions to her students, school and
-,i community.
.4,
Dated this 12th day of May, 2014. ,. -
17 THE CITY OF SEWARD,ALASKA
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Jean Bardarson,Mayor
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Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2014-044
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING THE ASSIGNMENT OF THE GROUND LEASE
WITH SEWARD SHIP'S DRYDOCK, INC. FOR THE REAL PROPERTY
DESCRIBED AS LOTS 1-A AND 3,BLOCK 7,FOURTH OF JULY CREEK
SUBDIVISION SEWARD MARINE INDUSTRIAL CENTER, SEWARD
SHIP'S DRYDOCK REPLAT, ACCORDING TO PLAT 2002-22, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF
ALASKA,TO VIGOR ALASKA-SEWARD,LLC,SUBJECT TO ASSIGNOR
PROVIDING THE CITY PROOF OF ENVIRONMENTAL LIABILITY
INSURANCE FOR FOUR(4)YEARS FROM THE DATE OF ASSIGNMENT,
AND AUTHORIZING THE CITY MANAGER TO ENTER INTO
AMENDMENT NO. 5 TO THE ASSIGNED GROUND LEASE
WHEREAS, the city (Lessor) and Seward Ship's Drydock, Inc. (Lessee) entered into the
current ground lease in 1995; and
WHEREAS,the Ground Lease has been amended and extended,with the most recent in July
2012 extending the term until June 30, 2040; and
WHEREAS, the lease authorizes assignment by the Lessee subject to city approval if the
Lessee sells its vessel repair and construction business; and
WHEREAS, Seward Ship's Drydock, Inc. desires to sell and Vigor Alaska- Seward,LLC
desires to purchase the vessel repair and construction business operated on the leased land; and
WHEREAS, Seward Ship's Drydock, Inc desires to assign its lease to Vigor Alaska -
Seward, LLC, and Vigor Alaska desires to assume the lease; and
WHEREAS, Vigor Alaska - Seward, LLC desires to amend the lease as presented at this
meeting and attached hereto; and
WHEREAS,the city requires the Assignor to provide the City with proof of environmental
liability insurance naming the city as insured as a condition of assignment; and
WHEREAS, city administration has negotiated the terms of the lease amendment, and the
parties agree that a timely and efficient transfer is in the parties' and the public's interest; and
WHEREAS,the City Charter,provisions of which cannot be waived by the council,requires
that resolutions involving real property transfers become effective not less than thirty (30) days
following passage and approval.
CITY OF SEWARD, ALASKA
Itior RESOLUTION 2014-044
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The Seward City Council authorizes the assignment of the Ground Lease from
Seward Ship's Drydock,Inc.to Vigor Alaska-Seward,LLC,subject to Seward Ship's Drydock,Inc.
satisfactory proof of insurance for environmental liability naming the city as insured for a period of
four(4) years.
Section 2. The Ground Lease assigned to Vigor Alaska-Seward,LLC is hereby amended as
presented at this meeting and attached hereto,and the City Manager is authorized to execute same in
substantially the form presented here.
Section 3. This resolution shall take effect thirty(30) days after passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of
May, 2014
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
City Council Agenda Statement
Meeting Date: May 12, 2014 r of se.
nte
To: Seward City Council
d�A51�P
From: Jim Hunt, City Manager
Agenda Item: Assignment of the ground lease with Seward Ship's
Drydock to Vigor Alaska LLC, and amendment of the assigned lease.
BACKGROUND & JUSTIFICATION:
The City of Seward has leased land to Seward Ships' Drydock, Inc. since 1988. The current ground lease
was entered into in 1995 for a Lease Term through June 30, 2009, and amended in January 2010 and further
amended in July 2012 to extend the term until June 30, 2040. Jim Pruitt, President of Seward Ship's
Drydock, Inc. has sold his vessel repair and construction business to Vigor Alaska, LLC, and now desires to
assign Seward Ship's Drydock's entire interest under the lease to Vigor Alaska, LLC, as authorized under
Article 8, Section 8.03 of the current lease, subject to the approval of the City.
Vigor Alaska, LLC, having conducted all appropriate inquiry regarding the site, agrees to accept, assume,
and agrees to keep, perform and fulfill all of the terms, covenants, conditions and obligations of the lease, as
amended by this resolution. Vigor desires to amend sections of the lease as attached hereto and as presenter'
at this meeting. Corresponding amendments are also required to align provisions of the Operations at
Maintenance Agreement. One amendment seeks to have the City indemnify Vigor for a period of four years -
for potential cleanup liability should a contaminant be found during that period and be determined to have
existed prior to this lease assignment. The administration recommends that as a condition of lease
assignment Seward Ship's Drydock, Inc. provide the City with proof of environmental liability insurance for
that same period of time.
Attached are the lease amendments, Phase I and Phase II Environmental Site Assessments, the original lease
dated April 25, 1995, lease amendment 1 dated December 23, 1997, lease amendment 2 dated January 2000,
lease amendment 3 dated October 26, 2001, lease amendment 4 dated January 14 2010, and Agreement to
Extend Ground Lease dated July 11, 2012.
INTENT
This resolution will authorize assignment of the lease from Seward Ship's Drydock, Inc. to Vigor Alaska,
LLC, and amend sections of the newly assigned lease.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (3.1.1.2, page8): "Expand the Seward Marine
1. Industrial Center; Improve and Expand onshore and offshore maritime X
facilities."
2 Strategic Plan (Page 7): "Expand development in the Seward Marine X
Industrial Center."
3. Other (list): X
9
FISCAL NOTE:
The lease rates are unchanged and the City will not assume the cost of the environmental liability insurance,
Sir as that is paid for by Seward Ships Drydock, Inc. There are no additional foreseeable costs associated with
the transfer of this lease.
Ae-‘146.
Approved by Finance Department: J6,22
ATTORNEY REVIEW: Yes: X No:
RECOMMENDATION: 044
Approve Council Resolution 2014- authorizing assignment of the lease from Seward Ship's Drydock, Inc.
to Vigor Alaska, LLC, and amending sections of the said lease.
'Ilisv
%liar
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Assignment, Assumption and Amendment of Lease
This ASSIGNMENT, ASSUMPTION AND AMENDMENT OF LEASE (this "Agreement') is
made this [ ] day of May, 2014, by and among Seward Ship's Drydock, Inc., an Alaska corporation
("Assignor"), Vigor Alaska - Seward LLC, an Alaska limited liability company ("Assignee"), and the
City of Seward, Alaska, an Alaska municipal corporation ("Lessor').
RECITALS
A. By that certain Ground Lease dated April 25, 1995, as amended by that certain Lease
95-094 Amendment No. 1, dated as of December 23, 1997, as further amended by that certain Lease
Amendment Number 2, dated as of January 2000, as further amended by that certain Ground Lease
Amendment No. 3, dated as of October 26, 2001, as further amended by that certain Ground Lease
Amendment No. 4, dated as of January 14, 2010, as further amended by that certain Agreement to
Extend Ground Lease, dated as of January 26, 2010, as further amended by that certain Agreement to
Extend Ground Lease, dated as of July 11, 2012, copies of which are attached hereto marked
ANNEX A (collectively, the "Lease"), by and between Lessor, as lessor, and Assignor, as lessee,
Lessor agreed to lease to Assignor and Assignor agreed to lease from Lessor all that certain tract of
land with improvements situated thereon commonly known as Lots 1-A and 3 Block 7, Fourth of July
Creek Subdivision Seward Marine Industrial Center(the"Premises").
B. Pursuant to that certain Asset Purchase Agreement (the "APA") dated as of May 2,
2014 by and between Assignor, as a Seller Party, and Assignee, as Buyer, Assignor agreed to sell and
Assignee agreed to purchase from Assignor, substantially all of Assignor's business assets and to
assume certain specifically identified liabilities of Assignor.
C. As further consideration for the transactions contemplated by the APA,Assignor desires
to assign the Lease to Assignee and Assignee desires to accept, as of the date hereof, which is �r
contemporaneous with the closing of the transactions contemplated by the APA, such assignment and
assume and discharge the obligations of Assignor arising from the Lease from and after the date hereof
pursuant to this Agreement.
D. The Lease provides, among other things, the right of Assignor to assign the Lease,
subject, nevertheless, to the consent of Lessor.
E. Lessor and Assignee desire to amend the Lease, effective upon the assignment from
Assignor to Assignee, as provided in this Agreement.
AGREEMENT
NOW, THEREFORE, for and in consideration of the covenants herein contained and intending
to be legally bound hereby the parties do hereby agree as follows:
1. Recitals: Definitions. The recitals set forth above are incorporated herein by reference.
Capitalized terms not otherwise defined herein shall have the same meaning as in the Lease, the
provisions of which are incorporated herein as fully set forth herein.
2. Assignment of Lease. Subject to the terms and conditions of this Agreement, Assignor
does hereby assign to Assignee all of Assignor's right, title and interest in and to the Lease (as the
same is amended by this Agreement) (the "Assignment'). Assignee does hereby agree to and accept
the Assignment and assume and agree to keep, perform and fulfill all of the terms, covenants,
conditions and obligations otherwise required to be kept by Assignor under the Lease (as amended by
this Agreement) on and after the date hereof.
3. Direct Lease. The Lease shall continue in full force and effect as a direct Lease
between Lessor and Assignee, as Lessee thereunder, upon and subject to all of the terms, covenants
and conditions of the Lease(as amended by this Agreement).
Ned
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New 4. Amendment to Lease. Lessor and Assignee hereby amend the Leaoa, effective as of
the date hereof, to provide as follows:
4.1 Environmental Matters. Sections 4.06(c) and 4.06(f) are hereby deleted in their
entirety and shall be substituted with the following:
^(c) Reserved."
^dD Indemnification.
(i) Definitions. For purposes of this Section, the following terms or phrases shall
have the following meanings:
"Baseline Audit' shall mean a Phase II inwaobgotion, which conforms with the ASTM
Standard E-1903-11: Standard for Environmental Site Assessments: Phase II
Environmental Site Assessment Procamo, the results of which are attached hereto as
Exhibit C. and any follow-on investigation deemed necessary or desirable, inc(ud/ng,
without limitation, the results of the current or upcoming EPA investigation. Lessee shall
provide written notice and a copy to City of the Baseline Audit and information. The
Baseline Audit establishes the baseline conditions of the Premises for purposes of
determining environmental liabilities addressed in this Section.
"Cleanup" shall mean any p|onning, invemdgotion, ramediation, removal, response
aotiona, or disposal, as those terms are defined in the Comprehensive Environmental
Response, Compensation and Liability Act, as amended, 42 U.S.C. § 9601. et. seq.
("CERCXA^). AS Title 46, and analogous state atatub*a, associated with including |ond,
groundwater soil vapor, marine sediments or any other environmental medium or place
where Hazardous Substances may come to be located.
"Pre-existing Contamination"shall mean the following:
�~- Any Hazardous Substances on or in the Premises (including /ond, groundwater
soil vapor, marine sediments or any other environmental medium or place where
Hazardous Substances may come to be located) which is disclosed in, arising
out of or related to contamination revealed in the Baseline Audit; or
Any Hazardous Substances arising from or related to operations at the Premises
prior to the effective date of that certain Assignment, Assumption and
Amendment of Lease, dated as of May []. 2014. by and among Seward Ship's
Drydock, Inc., an Alaska corporation, Vigor Alaska - Seward LLC, an Alaska
limited liability compmny. and the City of Seward, Alaska, an Alaska municipal
(the"Assignment").
"Required by LaW shall mean any actions or obligations associated with the Premises
or prior operations at the Premises which are (i) required by any regulatory agency
under any and all applicable federal, state or local atatuhne, regulations or ordinances,
now or hereinafter in eMeot, relating to pollution or environmental protection; or (ii)
required by any final and non-appealable court order in an action brought by a third
party for enforcement of such laws; or (iii) required pursuant to a Cleanup plan agreed
to by City or Lessee to carry out Cleanup obligations imposed under such laws.
"Subsequent Contamination" shall mean any Hazardous Substances on or in the
Premises that are not Pre-existing Contaminsdion, unless otherwise demonstrated by
Lessee. Lessee may demonstrate that Hazardous Substances on or in the Premises
not disclosed in the Baseline Audit are not Subsequent Contamination by submitting to
City credible and mutually acceptable evidence through laboratory dota, operational
naoonjo, historical documents such as aerial photographs or other material proof, that
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such contamination existed prior to the date of the Baseline Audit. Within thirty C30\ NOSY
days of the delivery of such evidence to City, City shall deliver written notice(a"Dispute
Notice") to Lessee indicating its disagreement with such findings. The failure to timely
deliver a Dispute Notice shall constitute an acceptance by City of Lessee's findings.
Following the delivery of a Dispute NoUoe, the following process shall be utilized to
resolve such dispute:
(a) Within thirty (30)days of the delivery of the Dispute Notice, City and Lessee
shall select a mutually agreeable third-party environmental consulting or
engineering firm (the "Referee") to evaluate the Hazardous Substances so
in dispute (it being understood that in making such evaluation, the Referee
shall be functioning as an expert and not as an arbitrator). The Referee
shall determine whether the Hazardous Substances so discovered
constitute Pre-existing Contamination or Subsequent Contamination, If City
or Lessee disagrees with the determination of the Referee, than it shall so
notify the other party in writing within five (5) days of the receipt of the
Referee's final report. The failure to timely deliver such notice shall
constitute an acceptance by such party of the Referee's findings. In the
event either party timely submits such notice, the provisions of Article 12
hereof shall apply to the resolution of such dispute.
(ii) Responsibility and Indemnity for Environmental Liability.
(A) General Allocation of Responsibilities. Except as otherwise
specifically set forth in this Seoton. City shall be responsible for liability
for any Cleanup Required by Law of Pre-existing Contamination and
Lessee shall be responsible for liability for Cleanup Required by Law of
Subsequent Contamination
. ' -d`
(B) Lessee Indemnification of City for Subsequent Contamination.
Lessee agrees to indernnify, hold harmless and defend City, and the
officeru, employees and agents of City, from and against any and all
doimmo, demands, damages, losses, liens, Uabi|iUea, pena|bmo, finea,
lawsuits and other proceedings and costs and expenses (including
attorneys'fees), arising directly or indirectly from or out of or in any way
connected with Subsequent Contamination that involves:
a. The failure of Lessee to comply with its covenants and agreements
contained in Section 4 that result in liability relating to Subsequent
Contamination;
b. Any activities on the Premises which directly or indirectly result in
the Premises becoming contaminated with Hazardous Substances
that are Subsequent Contamination;
c. The discovery of Hazardous Substances on the Premises
determined not to be Pre-existing Contamination in accordance with
the provisions of this Section 4.06(f).
d. The clean-up of Subsequent Contamination from the Premises.
(C) City Indemnification of Lessee for Pre-existing Contamination.
City agrees to indemnifv, hold harmless and defend Lasnme, and the
officers, employees and agents of Lessee, from and against any and all
c|ainno, demands, damages, losses, liens, |iebi|itiee, penalties, fines,
lawsuits and other proceedings and costs and expenses (including
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attorneys' fees), arising directly or indirectly from or out of or in any way
connected with Pre-existing Contamination; provided, hoxvever, that
such obligation to indemnify with respect to Pre-existing Contamination
not disclosed in, arising out of or related to contamination revealed in
the Baseline Audit shall only be effective at such time as all funds held
pursuant to that certain Escrow Agreement, by and among Lessee,
Seward Ship's Drydock, Inc. and James Pruib, dated as of May [ ].
2014. shall have been fully released by the parties thereto, and that all
expenses associated with such indemnification are subject to
appropriation by the City Council of City, which shall not unreasonably
(in light of the intents and purposes of this Section 4.060l) be withheld.
Fudhar. City agrees to act with all dispatch and use all reasonable
means to secure Federal, State or local appropriations to satisfy its
obligations under this Section 4.08(f). In no case shall the
indemnification obligations of City pursuant to this Section 4.06(f)(ii)(C)
apply following the four(4)-year anniversary of the Assignment."
4.2 Option to Terminate Lease. Section 7.05 is hereby deleted in its entirety and
shall be substituted with the following:
"Section 7.05- Reserved."
4.3 Assignment. Section 8.03 is hereby deleted in its entirety and shall be
substituted with the following:
"Section 8.03 - Assignment. Notwithstanding Section 8.01. Lessee may assign its
entire interest under this Lease to (a) a person to whom Lessee sells its vessel repair and construction
buoineoe, provided that the assignee and terms of the assignment shall be subject to approval by City,
or�-_ (b) any entity that direut|y. or indirectly through one or more inbamedioriem.
controls or is controlled
by, or is under common control with, Lessee, without consent or approval by City."
4.4 Events of Default. Section 11.01(a) is hereby deleted in its entirety and shall be
substituted with the following:
"(a) Failure by Lessee to pay promptly when due the rent required to be paid under
this Lease, and such amount remains unpaid for a period of seven (7) business days following the date
such rent payment is due."
4.5 Notices. Lessee's notice address provided for in Section 14.06 is hereby
amended as follows:
Vigor Alaska-Seward LLC
do Vigor Alaska LLC
3801 N. Tongass
P[> Box 9470
Ket hihan. A|omkaS9BD1
Attention:Adam Beck
5. Warranties and Representations,
5.1 Lessor. Lessor hereby represents and warrants that the document attached
hereto as ANNE}{A is a true and correct copy of the Lease. The Lease is in full force and effect and
has not been amended by any oQnaennent, vv,itten, verbal or otherwise, between Assignor and Lessor.
Other than the provisions of this A0naement, and that certain Maintenance and Operating Agreement
between Lessor and Assignor dated as of April 1, 2012. the Lease represents the entire agreement
between Lessor and Assignor relating to the Premises. Lessor has the ,ight, power and authority to
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enter into this Agnaen�en� 'Nod
5.2 Assignor. Lessor has complied with its obligations under the Lease and has not
assigned its interest in the Lease. Assignor represents, warrants and covenants to Assignee that, as of
the date of this Agreement:
A. Neither Lessor nor Assignor has taken any action to terminate the
Lease prior to its expiration pursuant to its terms.
B. No rent has been paid in advance other than the current quarter and
as otherwise provided by the Lemoe, nubioot, hovxevar, that any rents due and owing by Assignor to
Lessor are hereby reserved by Lessor.
C. All obligations under the Lease have been complied with by Assignor
(or waived in writing by Le000r), and there has been no violation of or default under any of the terms
of the Lease by Assignor as of this date and no facts exist which, with the giving of notice and/or the
passage of dnna, would constitute such a violation or default or any other claim by Lessor or
Assignor under the Lease of any nature or kind, except those items listed at "Material Compliance
Issues", page ES-2, of the ERM Phase I Environmental Site Assessment attached hereto as
ANNEX B.
O. Assignor has not assigned the Lease or received notice of an
assignment of the Lease by Lessor. Assignor has not sublet all or any portion of the Premises, and
Assignor does not hold the Premises under assignment or sublease.
E. Assignor has the right, power and authority to enter into this Agreement.
F
Commencing on the date of this Agreement and subject to the terms of
the baome, as amended by this Agreement, the Premises at all times hereafter during the term of the
Lease may be held by Assignee (or its assignee or sublessee)without any lawful interruption by Lessor
or Assignor or any person or persons claiming under or through Lessor or Assignor. '41 d
5.3 Assignee. Assignee rgpnaaenhm, warrants and covenants to Lessor that as of
the date of this Agreement
A. It is duly outhorized, and has the right and povver, to enter into this
Agreement.
8. It has taken all necessary corporate action to enter into this Agreement
and carryout the provisions hereof.
C. It has the financial capacity and expertise to enter into this Agreement
and operate a shipyard on the Premises in accordance with this Agreement.
Q. Entry into this Agreement and carrying out the provisions hereof does
not violate or conflict with the terms of any law or order of any administrative agency or the terms of any
agreement of the Assignee or order,judicial or otherwise to which Assignee may be subject.
G. Post-Assignment Insurance ByAssignor. Assignor shall obtain from a licensed insurer
a policy of premises pollution liability insurance insuring Lessor and Assignor from claims made during
the policy term arising from Pre-existing Contamination or Subsequent Contamination which insurance
a) shall be subject to commercially reasonable terms and enu/uuiqno, b) have limits of liability of
$1,000,000.00 per pollution condition and $3,000,000.00 aggregate, c) shall name Lessor and
Assignor as insureds, and d) be maintained in effect for a period of four(4) years from the date of this
agreement.
7. Miscellaneous:
7]_ Successors and Assigns. This Agreement shall inure to the benefit and shall be
5 ���
binding upon the successor and assi ns of the parties hereto and each of them.
7.2 Interpretation. In the event of any conflict between the provisions of the Lease
and the provisions of this Agreement, the provisions of this Agreement shall control. As amended
hereby, all of the hernne, covenants and conditions of the Lease shall remain in full force and effect after
the date hereof, and are hereby ratified and confirmed in all respects. All paragraph headings of this
Agreement are inserted for convenience only and shall not constitute a part of this Agreement, nor shall
they in any way affect its meaning, construction, interpretation or effect. This Agreement shall be
construed and enforced exclusively in accordance with the laws of the State of Alaska.
7.3 Notices. All not>cae, requeoto, demonda, directions and other communications
(collectively, "notices") under the provisions of this Agreement shall be in writing (including facsimile
communication) unless otherwise expressly permitted hereunder and shall be sent by first-class or
first-class express nai(, or by facsimile with confirmation in writing mailed first-class, in all
cases with
charges prepaid, and any such properly given notice shall be effective when received. All notices shall
be sent to the applicable party at their address set forth in Section 14.06 of the Lease (as amended by
this Agreement) or, in the case of Assignor, at the address of Le000r, or in accordance with the then
unrevoked written direction from such party to the other party hereto.
7.4 Relationship. The parties recognize that, for purposes of this Agreement.
Assignee is a"lessee" of Lessor and'assignee of Assignor, and nothing in the Lease or this Agreement
is intended or shall be construed to create an employer/employee relationship or a joint venture or a
partnership relationship, or to allow Lessor or Assignor to exercise control or direction over the matter or
method by which Assignee performs under this Agreement.
7.5 8evenabiUty. The invalidity of any portion of this Agreement shall not affect the
force and effect of the remaining valid portions of this Agreement.
7.6 Further Assurances. Each of Lessor, Assignor and Assignee shall, from time
to time upon the request of any of the others, promptly and duly execute, acknowledge and deliver any
and all such further instruments and dooummnta, and shall take such further action, as may be
necessary or desirable to confirm this Agreement and to carry out the purpose and intent hereof.
7.7 Counterparts/Execution. This Agreement may be executed in countmrparto,
including by means of PDF signature pagao, each of which shall constitute an original and all of
which, when taken together, shall constitute one and the same instrument. The exchange of copies
of this Agreement and of signature pages by electronic transmission shall constitute effective
execution and delivery of this Agreement as to the parties and such copies may be used in lieu of
the original Agreement for all purposes.
8. Lessor's Consent. Assignor and Assignee acknowledge and agree that Lessor's
consent is necessary for this Agreement. Leoao,, intending to be legally bound henaby, consents to the
Assignment of the Lease by Assignor to Assignee pursuant to the terms of this Agreement. Lessor
represents and warrants that it has full power and authority to enter into and grant this Lessor's consent
under Resolution 2014-H of Lessor authorizing its City Manager to enter into this Agreement on behalf
of Lessor and the parties agree that the power and authority of Lessor to enter into and grant this
consent is subject to the terms of Resolution 2014-(].
Each of Assignee and Assignor have provided Lessor with certified copies of all necessary
corporate resolutions and other documents evidencing the authority of persons signing this Agreement
on their behalf and to bind them in accordance with the terms of this Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
��
��- 6
IN WITNESS WHEREOF, the undersigned have hereunto set their hands and seals by their Nis"
duly authorized officers as of the date and year set forth opposite their names below, intending to be
legally bound.
ASSIGNOR:
SEWARD SHIP'S DRYDOCK, INC.
By: I af■ 11111r. - 4.4 -
ame: James Pruitt
Title: President
[Assignment,Assumption and Amendment of Lease] ,queo
17
ASSIGNEE:
VIGOR ALAS -S RD L
Name: Adam Beck
Title: President
r
Ifr
{
I1
14
[Assignment,Assumption and Amendment of Lease]
18
LESSOR:
NS°
CITY OF SEWARD, ALASKA
By:
Name: James Hunt
Title: City Manager
ATTEST:
By:
Name: Johanna Kinney, CMC
Title: City Clerk
NIS
Nol#
[Assignment,Assumption and Amendment of Lease]
19
ANNEX A
LEASE
Attached.
20
ANNEX B
4*■•••04
PHASE I ENVIRONMENTAL SITE ASSESSMENT
Attached.
"1"Id
%wad
21
•
•
Anna A
CITY OF SEWARD, ALASKA
as Lessor
to
SEWARD SHIP'S DRYDOCK, INC.
• as Lessee
GROUND LEASE
Dated as of April 25, 1995
)
020108
22
TABLE OF CONTENTS
ARTICLE 1
Definitions
ARTICLE 2
Lease of Premises
Section 2.01 - Lease of Premises
Section 2.02 - Legal Description
Section 2.03 - Lease Term
Section 2.04 - Extension of Lease Term
Section 2.05 - Covenant of Quiet Enjoyment
ARTICLE 3
Rent
° Section 3.01 - Amount of Rent "'
Section 3.02 - Payment of Rent
Section 3.03 - Adjustment to Rent After Appraisal
Section 3.04 - Periodic Adjustments to Rent
Section 3.05 - Rent Credits for Deferred Maintenance
ARTICLE 4
Use of Premises
Section 4.01 - Use of Premises
• Section 4.02 - Specific Use Restrictions
Section 4.03 - Platting
Section 4.04 - Land Use Approvals
Section 4.05 - Easements and Rights-of-Way
Section 4.06 - Environmental Matters
ARTICLE 5
Construction by Lessee
Section 5.01 - Construction _
Section 5.02 - Protection Against Liens _
Section 5.03 - Fencing on Premises _
City of Seward Nod
Ground Lease
AMMOOI B2
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1
, .
Now
ARTICLE 6
SMIC and Public Port Facilities 14
Section 6.01 - Adequacy of Port Facilities 14
Section 6.02 - Other Leasing by City 14
Section 6.03 - Operation by Lessee 14
Section 6.04 - Repairs on Ship lift Facility Platform 14
Section 6.05 - Port and Harbor Tariff 14
ARTICLE 7
Termination or Expiration of Lease Term 15
Section 7.01 - Lessee's Duty to Surrender 15
Section 7.02 - Holding Over 15
Section 7.03 - Disposition of Improvements 15
Section 7.04 - Determination of Compensation 16
Section 7.05 - Option to Terminate Lease 16
Section 7.06 - Option to Renew Operating Agreement 16
ARTICLE 8
Sublease or Assignment 16
Section 8.01 - Assignment of Lease or Subleasing 16
Section 8.02 - Subleasing 17
Section 8.03 - Assignment 17
Section 8.04 - Assignment of Lease for Security 17
ARTICLE 9
Indemnity: Insurance 18
Section 9.01 - Lessee's Duty to Indemnify 18
Section 9.02 - Insurance Requirements 18
ARTICLE 10
Condemnation 20
ARTICLE 11
Default- Remedies 20
Section 11.01 - Events of Default 20
Section 11.02 - Remedies for Default by Lessee 21
Section 11.03 - No Waiver of Breach 23
City of Seward
14law ) Ground Lease
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a
ARTICLE 12
Dispute Resolution 23
Section 12.01 - Submission of Claims 23
Section 12.02 - Arbitration 23
•
ARTICLE 13
Maintenance and Repairs of Premises 24
Section 13.01 - Normal Maintenance 24
Section 13.02 - Inspection of Premises 24
Section 13.03 - Taxes, Assessments and Other Charges 24
Section 13.04 - Fire Protection 25
Section 13.05 - Parking 25
ARTICLE 14
Miscellaneous 25
Section 14.01 - Time 25
Section 14.02 - Entire Agreement 25
Section 14.03 - Relationship of Parties 25
Section 14.04 - Covenants 25
Section 14.05 - Estoppel Certificates 26
Section 14.06 - Notices 26
Section 14.07 - Binding Effect 26
Section 14.08 - Severability 26
Section 14.09 - Amendments 26
Section 14.10 - Execution in Counterparts 26
Section 14.11 - Applicable Law; Jurisdiction 27
Section 14.12 - Captions 27
•
City of Seward
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•
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, •
GROUND LEASE
This Ground Lease is made as of April 25, 1995 between the City of Seward,
Alaska, an Alaska municipal corporation ("City"),whose address is P.O. Box 167, Seward,
Alaska 99664, and Seward Ship's Drydock, Inc. ("Lessee"), whose address is P.O. Box
944, Seward, Alaska 99664.
WHEREAS, City and Lessee are Lessor and Lessee, respectively, under a lease
agreement effective as of September 22, 1988, as amended (the "Prior Lease"), a
memorandum of which was recorded at Book 53, Page 255, Seward Recording District,
Third Judicial District, State of Alaska, under which Lessee leased from City certain real
property located in the City of Seward, as described in the Prior Lease (the "Former
Premises"); and
WHEREAS, an arbitrators' decision and order dated January 4, 1993, set forth
certain rights of City and Lessee under the Prior Lease, including the determination that
City could not enforce any penalty against Lessee for a period of 24 months after the date
of the arbitrators' decision and order (or until January 9, 1995), with respect to Lessee's
failure to construct on the Former Premises a permanent covered repair building capable
of enclosing a vessel 300 feet in length (the "300-Foot Building"); and
WHEREAS,the City Council of City has declined to extend the time for construction
of the 300-Foot Building, and has proposed that in lieu of constructing the 300-Foot
Building Lessee assume all expenses of maintaining and operating City's Shiplift Facility
described herein; and
WHEREAS, by entering into this Lease Lessee will be relieved of the obligation to
construct the 300-Foot Building, and by a separate maintenance and operating agreement
with City dated the date hereof (the "Operating Agreement") Lessee will assume all
expenses of operating and maintaining City's Shiplift Facility, and Lessee will continue
best efforts for the construction of a covered work station for vessel repair; and
WHEREAS, City and Lessee agree to share equally the burden of Shiplift Facility
deferred maintenance through direct expenditures by Lessee and by up to five years of
rent credits by City; and
WHEREAS, Lessee will repair and replace Shiplift Facility deferred maintenance
items according to a mutually agreeable schedule and list of tasks; and
skim. ) City of Seward
Ground Lease Page 1
AWW4182
020112
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, a
. "
Nod
WHEREAS, the parties have determined that it is in their respective interests to
modify substantially their relationship under the Prior Lease, by terminating the Prior Lease
and entering into this Lease and the Operating Agreement to replace the Prior Lease; and
WHEREAS, City has agreed to lease to Lessee the premises described herein,
which includes the Former Premises (the "Premises"), and Lessee has agreed to lease
the Premises from City under the terms and conditions set forth herein; and
WHEREAS, City has invested substantial public monies in the construction of public
port facilities adjacent to and on the Premises in order to provide opportunities for the
development of a vessel repair and construction industry in the City of Seward; and
WHEREAS, the City Council of the City of Seward has determined that a lease of
the Premises and construction and operation thereon of a vessel repair and construction
facility is in the public interest in that such a facility would be compatible with the public's
use of the public port facilities, provide employment for the residents of the City of
Seward, and promote the growth and stability of the economy of the City of
Seward; and
WHEREAS, Lessee has and will continue to offer comprehensive vessel repair and
construction services, including without limitation steel and other metal work, marine pipe
) fitting, marine electrical repair, waste handling, sand blasting, painting and other marine
services, and Lessee has and will continue to be capable of handling vessels up to 300
feet in length, and provide employment for residents of the City of Seward;
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree as follows:
ARTICLE 1
Definitions
The following terms will have the meanings indicated below unless the context
clearly requires otherwise:
"Arbitration" means arbitration under the procedure set forth in Article 12.
"City" means the City of Seward, Alaska.
"Claim" means a demand or assertion by either party to this Lease, seeking, as a
matter of right, adjustment or interpretation of Lease terms, payment of money,extension
City of Seward
Ground Lease Page 2
Ammoots2
020113
27
Ikragr
of time or other relief with respect to the terms of this Lease, and also includes other
disputes and matters in question between City and Lessee arising out of or relating to this
Lease.
"Deferred Maintenance" means all repair and maintenance items for the Ship lift
Facility identified as such under the terms of the Operating Agreement.
"Environmental Laws" means all local, state and federal laws, ordinances,
regulations and orders related to environmental protection; the use, storage, generation,
production, treatment, emission, discharge, remedlation, removal, disposal or transport
of any Hazardous Substance; or any other environmental matter, including without
limitation any of the following statutes:
(i) Federal Resource Conservation and Recovery Act of 1976, as amended, 42
U.S.C. Sections 6901-6991K;
(ii) Federal Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, 42 U.S.C. Sections 9601-9675;
(iii) Federal Cler Air Act, 42 U.S.C. Sections 7401-7642;
(iv) Federal Hazardous Material Transportation Control Act of 1970, as amended,
49 U.S.C. Sections 1801-1812;
(v) Federal Clean Water Act of 1977, as amended, 33 U.S.C. Sections 1251-1387;
(vi) Federal Insecticide, Fungicide and Rodenticide Act, as amended, 7 U.S.C.
Sections 2601-2671;
(vii) Federal Toxic Substances Control Act, 15 U.S.C. Sections 2601-2671;
(viii) Federal Safe Drinking Water Act, 42 U.S.C. Sections 300f-3001-26; and
(ix) Title 46 of the Alaska Statutes.
"Event of Default" means any of the events described in Section 11.01.
"Fiscal Year" means the calendar year.
"Force Majeure" means, without limitation, the following: acts of God; strikes,
lockouts or other industrial disturbances; acts of public enemies; orders or restraints of
any kind of the government of the United States or of the State of Alaska or any of their
departments, agencies, subdivisions or officials, or any civil or military authority;
City of Seward
Ground Lease Page 3
AMM001132
020114
28
insurrection; riots;landslides;icebergs;typhoons;tornadoes;adverse weather conditions;
tidal waves; earthquakes; fires; storms; droughts; floods; explosions; breakage,
malfunction or accident to facilities, machinery, transmission pipes or canals; or any other
cause or event not reasonably within the control of the Lessee.
"Hazardous Substances" means any substance or material defined or designated
as hazardous or toxic waste, hazardous or toxic material, a hazardous, toxic or
radioactive substance,or other similar term, by any Environmental Laws, and shall include
any such substance or material as may hereafter become defined or designated as
hazardous or toxic material by any Environmental Laws.
"Lease" means this Lease, as amended from time to time.
"Lease Term" meene the duration of the Lease of the Premises to Lessee as set
forth in Section 2.03.
"Lessee" means Seward Ship's Drydock, Inc., an Alaska corporation, its
successors and assigns.
"Operating Agreement"means the Maintenance and Operating Agreement between
City and Lessee dated April 25, 1995. *Nod
) "Port Facilities" means all public port facilities owned or operated by City from time
to time, including without limitation the Shiplift Facility.
"Premises" means the land plus any improvements described in Section 2.02,
exclusive of any other improvements now or hereafter located on the land, notwithstand-
ing that any such improvements may be determined to be affixed to, and constitute part
of, the real property, and regardless of whether City or Lessee owns the improvements.
"Prior Lease" means the Lease Agreement effective as of September 22, 1988, as
amended, between City and Lessee, a memorandum of which was recorded at Book 53,
Page 255, Seward Recording District, Third Judicial District, State of Alaska.
"Rent" means an amount equal to $66,052 per year, adjusted as provided in Article
"Rent Adjustment Date" means January 1, 2000 and January 1 of every fifth year
thereafter.
"SMIC" means the Seward Marine Industrial Center, consisting of the area shown
on the site map in Exhibit A hereto.
4orlif
City of Seward
Ground Lease Page 4
AMM001 B2
020115
29
, . .
Ntrir
"Shiplift Facility" means the Syncrolift Ship lift System in the SMIC, including the
mechanical shiplift and all associated equipment, all upland rails not located on the
Premises or other leased property,the side transfer cradle assembly, the shiplift dock and
33 connected cofferdam cells comprising the south breakwater.
ARTICLE 2
Lease of Premises
Section 2.01 - Lease of Premises. City leases the Premises to Lessee, and Lessee
hires the Premises from Lessor, in accordance with this Lease for the Lease Term.
Section 2.02- Legal Description. The legal description of the Premises is included
in Exhibit B hereto. Notwithstanding any contrary provision in the Prior Lease, any
improvements constructed by Lessee or its predecessor on the Premises under the Prior
Lease and existing at the commencement of this Lease shall remain Lessee's property
subject to the other terms of this Lease. City shall receive no compensation for the
improvements other than the performance of Lessee's covenants expressed in this Lease.
Section 2.03 - Lease Term. The Lease Term commences April 25, 1995, and ends
at midnight on June 30, 2009, unless sooner terminated as provided herein. The Lease
Term is subject to extension at the option of Lessee as provided in Section 2.04.
Section 2.04 - Extension of Lease Term. Lessee may, at its option, extend the
Lease Term for one or more additional periods which shall not, in total, exceed 20 years.
Notwithstanding any other provision of this Lease, no extension of the Lease Term shall
cause the Lease Term to expire later than midnight on June 30, 2029. Lessee shall
exercise the option granted by this section in the manner, and subject to all of the
conditions, set forth in this section.
(a) The exercise of an option to extend the Lease Term under this section shall
be subject to the following conditions:
(1) Lessee shall notify Lessor of the exercising of the option in the
manner specified in (b) of this section.
(2) Before exercising the option, Lessee shall submit to City plans for
improvements to the Premises or the Shiplift Facility, an engineer's or architect's
estimate of the cost of the improvements, and a schedule for acquiring, construct-
ing and installing the improvements, and City shall have given Lessee its written
approval of the proposed improvements.
City of Seward
Ground Lease Page 5
AMMOO1B2
30 020116
■.4.04
(3) Lessee shall designate the portion of the proposed improvements
that it intends to finance with borrowed funds, and shall provide City with a written
commitment from a financial institution to lend the designated amount to Lessee.
(4) Lessee shall submit to City a written estimate prepared by the
financial institution that has committed to lend funds for the improvements of the
number of years required to amortize the borrowed amount, with interest, in
payments totalling not less than $100,000 per year.
(5) The exercise of the option shall not extend the expiration date of the
Lease Term to a date later than five years after the date the borrowed amount, with
interest, will be amortized under the estimate provided under (a)(4) of this section.
(b) Lessee sna,11.give City written notice of the exercise of an option to extend
the Lease Term under tbis section, with the documents required under (a) of this section,
not later than 180 days before the date of expiration of the Lease Term, as previously
extended.
(c) An extension of the Lease Term under this section shall become effective
on the date of the closing of the financing of the improvements described in the
documents Lessee submits to City to exercise the option.
*Id
• •Th\
Section 2.05- Covenant of Quiet Enjoyment. Subject only to the provisions of this
Lease, Lessee shall have the quiet enjoyment and possession of the Premises for the
uses authorized hereunder for the full Lease Term. City owns the Premises free and clear
of all encumbrances and is fully empowered to enter into this Lease.
' ARTICLE 3
Rent
Section 3.01 - Amount of Rent. Lessee shall pay to City without abatement,
deduction or offset (except as provided in Section 3.05) annual rent in an amount equal
to the Rent.
Section 3.02 - Payment of Rent.
•
(a) Rent shall be payable in advance in four equal quarterly installments on
January 1, April 1, July 1 and October 1 of each year; provided that the first rent payment
shall be due on the first day of the Lease Term, and the first and last rent payments shall
be prorated based upon the number of days in the period for which the rent is due.
` 000
City of Seward 4
Ground Lease Page 6
AMM001 B2
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31
(b) Upon the determination of the adjustment to Rent under Section 3.03,
Lessee shall pay to City the amount, if any, by which the adjusted Rent exceeds Rent
previously paid, and City shall pay the Lessee the amount, if any, by which Rent
previously paid exceeds the adjusted Rent.
Section 3.03 - Adjustment to Rent After Appraisal. The Rent shall be adjusted to
the fair market rental value as of the commencement of the Lease Term, of the Premises
as a vessel construction and repair facility, exclusive of improvements placed thereon by
Lessee or its predecessor under this Lease or the Prior Lease, but including all
improvements made by City before or after the commencement of the Lease Term. Not
later than 180 days after the commencement of the Lease Term, City shall provide Lessee
with a copy of the report of an independent MAI appraiser engaged at City's expense
stating the appraiser's determination of the fair market rental value of the Premises under
this section as of the 'commencement of the Lease Term. The appraiser shall be
instructed to take into account in determining the fair market rental value of the Premises
(i) the value of the shiplift transfer rails on the Premises, and (ii) the Premises's proximity
and access to the Ship lift Facility. Unless Lessee objects to City's appraisal as provided
below, the Rent shall be adjusted to the fair market rental value determined in the
appraiser's report as of the commencement of the Lease Term.
The fair market rental value determined under the preceding paragraph shall be
final unless Lessee (I) notifies City in writing that it objects thereto within 30 days following
City's delivery or mailing of its appraiser's report; and (ii) at its own expense engages a
second independent MAI certified appraiser to determine the fair market rental value of
the Premises, and provides City with a copy of the appraiser's report not less than 60
days after its receipt of the report of City's appraiser. Lessee's appraiser shall be
instructed to take into account in determining the fair market rental value of the Premises
(i) the value of the shiplift transfer rails,on the Premises, and (ii) the Premises's proximity
and access to the Shiplift Facility.
If the fair market rental value determined by Lessee's appraisal varies from the fair
market rental value determined by City's appraisal by no more.than 15 per cent,the Rent
as of the commencement of the Lease Term shall be the average of the fair market values
determined under the two appraisals. If the fair market rental value determined by
Lessee's appraisal varies from the fair market rental value determined by City's appraisal
by more than 15 per cent, the Rent as of the commencement of the Lease Term shall be
the average of the fair market values determined under the two appraisals, unless either
party notifies the other in writing within 15 days of City's receipt of Lessee's appraiser's
report that the fair market value shall be determined by a third appraisal.
Upon written notice that fair market rental value shall be determined by a third
appraisal, each party shall instruct its appraiser to select with the other party's appraiser
a third MAI certified appraiser. The third appraiser shall determine the fair market rental
) City of Seward
Ground Lease Page 7
AM 1.4001 B2
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value of the Premises as of the commencement of the Lease Term in accordance with
this section, based upon a review of the two previous appraisers' reports and any
additional investigation the third appraiser deems necessary. The Rent shall be adjusted
to the fair market rental value determined in the third appraiser's report as of the
commencement of the Lease Term. Each party shall bear half the cost of the third
appraisal.
Section 3,04 - Periodic Adjustments to Rent. On each Rent Adjustment Date, the
Rent shall be adjusted to the fair market rental value as of the Rent Adjustment Date, of
the Premises as a vessel construction and repair facility, exclusive of improvements
placed thereon by Lessee or its predecessor under this Lease or the Prior Lease, but
including all improvements made by City before or after the commencement of the Lease
Term. Not later than 90 dqs,before the Rent Adjustment Date, City shall provide Lessee
with a copy of the report of an independent MAI appraiser engaged at City's expense
stating the appraiser's determination of the fair market rental value of the Premises under
this section as of the Rent Adjustment Date. The appraiser shall be instructed to take into
account in determining the fair market rental value of the Premises (i) the value of the
shiplift transfer rails on the Premises, and (ii) the Premises's proximity and access to the
Shiplift Facility. Unless Lessee objects to City's appraisal as provided below, the Rent
shall be adjusted to the fair market rental value determined in the appraiser's report as
of the Rent Adjustment Date.
•
• The fair market rental value determined under the preceding, paragraph shall be
final unless Lessee (I) notifies City in writing that it objects thereto within 30 days following
City's delivery or mailing of its appraiser's report; and (ii) at its own expense engages a
second independent MAI certified appraiser to determine the fair market rental value of
the Premises, and provides City with a copy of the appraiser's report not less than 60
days after its receipt of the report of City's appraiser. Lessee's appraiser shall be
instructed to take into account in determining the fair market rental value of the Premises
(i) the value of the shiplift transfer rails on the Premises, and (ii) the Premises's proximity
and access to the Shiplift Facility.
If the fair market rental value determined by Lessee's appraisal varies from the fair
market rental value determined by City's appraisal by no more than 15 per cent, the Rent
as of the Rent Adjustment Date shall be the average of the fair market values determined
under the two appraisals. If the fair market rental value determined by Lessee's appraisal
varies from the fair market,rental value determined by City's appraisal by more than 15
per cent, the Rent as of the Rent AdjustMent Date shall be the average of the fair market
values determined under the two appraisals, unless either party notifies the other in writing
within 15 days of City's receipt of Lessee's appraiser's report that the fair market value
shall be determined by a third appraisal.
City of Seward
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AMAA001 82
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. ,
•
Upon written notice that fair market rental value shall be determined by a third
appraisal, each party shall instruct its appraiser to select with the other party's appraiser
a third MAI certified appraiser. The third appraiser shall determine the fair market rental
value of the Premises as of the Rent Adjustment Date in accordance with this section,
based upon a review of the two previous appraisers' reports and any additional
investigation the third appraiser deems necessary. The Rent shall be adjusted to the fair
market rental value determined in the third appraiser's report as of the Rent Adjustment
Date. Each party shall bear half the cost of the third appraisal.
Section 3.05 - Rent Credits for Deferred Maintenance. Lessee shall be allowed as
a credit not exceeding the amount of Rent due from the commencement of the Lease
Term through April 25, 2000, for the amount actually expended by Lessee through April
25, 2000 for Deferred Maintenance or replacement of shiplift cables. Lessee shall receive
this credit as follows:
(a) Lessee may deduct from any Rent payment due for the period ending on
or before April 25, 2000, the amount by which (i) the amount actually expended before
the earlier of the Rent due date and April 25, 2000 by Lessee for Deferred Maintenance
or replacement of shiplift cables, exceeds (ii) Rent for which Lessee already has received
a credit under this section.
kep• (b) At the end of each Fiscal Year ending before January 1, 2001, City shall
refund to Lessee from Rent due and paid on or before the end of that Fiscal Year the
amount by which (I) the amount actually expended before the earlier of the end of the
Fiscal Year and April 25, 2000 by Lessee for Deferred Maintenance or replacement of
shiplift cables, exceeds (ii) Rent for which Lessee already has received a credit under this
section.
•
ARTICLE 4
Use of Premises
Section 4.01 -.Use of Premises. The parties agree that the Premises is one of few
parcels within the SMIC suitable for vessel repair and construction and that City has made
a substantial investment in public facilities adjacent or in proximity to the Premises with
the objective of providing opportunities for businesses such as Lessee's to operate.
Lessee shall use the Premises only for vessel repair. and construction, and purposes
incidental thereto. Lessee shall operate a vessel repair and construction facility on the
Premises continuously during the Lease Term. Lessee is not operating a vessel repair
and construction facility continuously on the Premises if, during any period of 60
consecutive days, Lessee performs no vessel repair or construction work on any vessel
on the Premises.
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Section 4.02 - Specific Uje Restrictions. Lessee shall not commit any waste of the
Premises or the improvements thereon. Lessee shall use, operate and maintain the
Premises and the improvements thereon in accordance with all laws and regulations
governing such use, operation and maintenance. Lessee will not use the Premises in any
manner or construct any improvements thereon which would constitute a public nuisance
or which would interfere with the use of other land in the SMIC.
Section 4.03- Platting. Lessee caused the Premises to be surveyed at its expense
under the Prior Lease. City shall at its expense prepare and submit to the Kenai
Peninsula Borough for approval and recording a final plat including and identifying the
Premises as a separate parcel, based upon the survey performed by Lessee.
Section 4.04 - Land Use Approvals. Lessee at its sole expense may prepare and
submit any application for rezoning, conditional use approval, subdivision or other land
use permit approval that it deems necessary or appropriate for the uses of the Premises
permitted under this Lease. City shall from time to time upon request of Lessee execute
such documents as be necessary to apply for any such approval. Nothing in this section
shall require City to incur any expense, or to take any actiOn as a land use regulator.
Section 4.05 - Easements and Rights-of-Way. Either party to this Lease shall from
time to time upon request of the other party execute and deliver such documents as may 'Nod
be necessary to grant street, water, drainage, gas, power line and other easements and
rights-of-way as are necessary to provide for orderly development of the SMIC Including
the publicly owned facilities therein. The costs of relocating any public easements or
restrictions of record including any relocation of public road, 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 requests do not interfere
with or inhibit the overall development of the SMIC. Any easements or rights of access
granted to Lessee by City need not be exclusive to Lessee. Any and all easements,
rights of access or rights-of-way which City may choose to grant at some future date shall
not unreasonably interfere with the permitted uses of the Premises by Lessee.
Section 4.06 - Environmental Matters. Lessee covenants and agrees as follows:
(a) Lessee will not cause or permit the Premises to be used to generate,
manufacture, refine, transport, treat, store, handle, dispose, transfer, produce or process
any Hazardous Substance;except in compliance with all applicable Environmental Laws,
nor shall Lessee cause or permit, as a result of any intentional or unintentional act or
omission on the part of the Lessee or any other user or occupant of the Premises, the
release of any Hazardous Substance onto the Premises.
(b) Lessee will at all times in all respects use its best efforts to comply, and will
use its best efforts to cause all other users or occupants of the Premises to comply, with
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all Environmental Laws, including without limitation undertaking the following specific
actions: (i) Lessee will, at its own expense, procure, maintain in effect and comply with
all conditions of any and all permits, licenses and other governmental and regulatory
approvals required by all Environmental Laws, including without limitation permits required
for discharge of (appropriately treated) Hazardous Substances into the ambient air or any
sanitary sewers servicing the Premises; and (ii) except as discharged into the ambient air
or a sanitary sewer in strict compliance with all applicable Environmental Laws, any and
all Hazardous Substances to be treated and/or disposed of by the Lessee will be
removed and transported solely by duly licensed transporters to a duly licensed treatment
and/or disposal facility for final treatment and/or disposal (except when applicable
Environmental Laws permit on-site treatment or disposal in a sanitary landfill).
(c) If the presence, release, threat of release, placement on the Premises, or
the generation, transportation, storage, treatment or disposal at the Premises of any
Hazardous Substance. (i), gives rise to liability (including without limitation a response
action, remedial action or removal action) under any Environmental Law, (ii) causes a
significant public health effect, or (iii) pollutes or threatens to pollute the environment,
Lessee shall, at its sole expense, promptly take any and all remedial and removal action
necessary to clean-up the Premises and mitigate exposure to liability arising from the
Hazardous Substance, whether or not required by law.
(d) Lessee shall maintain a complete file, which may be inspected at any
reasonable time by City containing copies of all correspondence, permits or other material
between Lessee and any federal, state or other governmental authority.
(e) Lessee shall give City within 24 hours (i) written notice and a copy of any
notice or correspondence it receives from any federal, state or other governmental
authority regarding Hazardous Substances on the Premises or which affect or will affect
the Premises, or expenses or losses incurred or expected to be incurred by Lessee or
any government agency to study, assess, contain or remove any Hazardous Substances
on or near the Premises, and (ii) written notice of any knowledge or information Lessee
obtains regarding the release or discovery of Hazardous Substances on the Premises.
(f) Lessee agrees to indemnify, hold harmless and defend City, and the officers,
employees and agents of City, from and against any and all claims, demands, damages,
losses, liens, liabilities, penalties,.fines, lawsuits and other proceedings and costs and
expenses (including attorneys' fees), arising directly or indirectly from or out of, or in any
way connected with:
(i) The failure of Lessee to comply with its covenants and agreements
contained in this section;
)
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(ii) Any activities on the Premises which directly or indirectly result in the
Project becoming contaminated with Hazardous Substances;
(iii) The discovery of Hazardous Substances on the Premises; and
(iv) The clean-up of Hazardous Substances from the Premises without
regard to (1) the nature of the activities producing the Hazardous Substances, (2)
the identity of the person conducting such activities, and (3)the time such activities
took place (whether prior or subsequent to Lessee's acquisition of the Premises).
(g) The provisions of this section, including the obligation to indemnify, shall
survive the termination or expiration of the Lease Term.
(h) Nothing in this section shall prejudice or impair the rights or claims of
Lessee against any person or entity other than City with respect to the presence of
Hazardous Substances as set forth above.
ARTICLE 5
Construction by Lessee
\Id•
Section 5.01 - Construction. Lessee may erect, maintain, alter, remodel,
reconstruct, rebuild, build and replace improvements on the Premises, subject to the
following conditions:
(a) Lessee shall not be in default under this Lease; •
(b) Lessee at its sole expense shall obtain all approvals required for the work
from governmental agencies having jurisdiction;
(c) Lessee shall bear the entire cost of the work;
(d) In accordance with Section 5.02, the Premises shall at all times be kept free
of mechanics and materialmen's liens.
(e) Lessee shall supply City with a copy of all building plans and specifications
and a site plan or plans for the improvements.
(f) Lessee shall (i) cause the work to be constructed in a workmanlike manner
and in accordance with all applicable regulatory requirements, and (ii) cause the work to
be prosecuted with diligence to completion. As between Lessee and City, Lessee shall
bear the entire cost of correcting deficient or incomplete work. Nothing in this section
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shall prejudice or impair the rights or claims of Lessee against any person or entity other
than City with respect to deficient or incomplete work.
(g) All such work shall be directly related to and necessary to the operation or
maintenance of a vessel repair and construction facility on the Premises.
Section 5.02- Protection Against Liens. (a) Lessee shall not permit to be enforced
against the Premises or any part of it any mechanic's or materialman's lien arising from
any work of improvement, however it may arise. However, Lessee may in good faith and
at Lessee's own expense contest the validity of any such asserted lien, claim or demand,
provided Lessee has furnished the bond required in AS 34.35.072 (or any comparable
statute hereafter enacted for providing a bond freeing the Premises from the effect of
such a lien claim). Lessee shall defend and indemnify City against all liability and loss of
any type arising out of work performed on the Premises by Lessee, together with
reasonable attorneys' fees and all' costs and expenses incurred by City in negotiating,
settling, defending, or otherwise protecting against such claims.
(b) If Lessee does not cause to be recorded the bond described in AS
34.35.072 or otherwise protect the property under any alternative or successor statute,
and a final judgment has been rendered against Lessee by a court of competent
jurisdiction for the foreclosure of a mechanic's or materialman's lien claim, and if Lessee
fails to stay the execution of the judgment by lawful means or to pay the judgment, City
shall have the right, but not the duty, to pay or otherwise discharge, stay, or prevent the
execution of any such judgment or lien or both. Lessee shall reimburse City for all sums
paid'by City under this paragraph, together with all City's reasonable attorneys' fees and
costs, plus interest on those sums, fees, and costs at the rate of 10.5 percent per year
from the date of payment until the date of reimbursement
(c) City may give notice of non-responsibility for any work performed by Lessee
on the Premises.
(d) On completion of any substantial work of improvement during the Lease
Term, Lessee shall file or cause to be filed a notice of completion. Lessee hereby
appoints City as Lessee's attorney-in-fact to file the notice of completion on Lessee's
failure to do so after the work of improvement has been substantially completed.
Section 5.03 - Fencing on Premises. Lessee, at its own expense, shall construct
a fence around the perimeter of the Premises as specified in Exhibit C. Lessee shall
complete construction of the fence not later than July 30, 1995.
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ARTICLE 6
SMIC and Public Port Facilities
Section 6.01 - Adequacy of Port Facilities. Lessee has reviewed the plans,
specifications and actual improvements made to City's Port Facilities, and has
independently determined that they are sufficient for Lessee's intended uses of the
Premises. City makes no representations or warranties as to the fitness of any particular
part or the whole of City's Port Facilities for the uses of the Premises intended by Lessee.
Section 6.02 - Other Leasing by City. Nothing in this Lease shall preclude City
from leasing real property, including without limitation real property at the SMIC, to other
parties who may compete with Lessee, or from seeking other tenants who might be
interested in leasing the Premises upon termination or expiration of the Lease Term.
Section 6.03-Operation by Lessee. Lessee shall move all vessels from the Ship lift
Facility to the Premises by means of a suitable rail-mounted ship cradle towing system.
The cradle and towing system and rails on the Premises must be certified as meeting
acceptable engineering standards for synchrolift/rail loading and must meet annual
) Lloyd's registry class rating (Section 4, Lloyd's Register of Shipping, 1981-mechanical lift
docks) by an independent surveyor acceptable to Lloyd's prior to any use on the Ship lift
Facility. The cradle system (and the towing device,to the extent required by classification
or inspection societies) must be inspected and re-certified in accordance with the
requirements of Lloyd's Classification Society as a condition precedent to continued use
of the Premises by Lessee.
Section 6.04 - Repairs on Ship lift Facility Platform. Lessee may not perform any
vessel repair or construction work on the Ship lift Facility platform, except for propeller
changes, shaft changes, surveys, zinc replacements, light steel work, and repairs or
replacements of transducers or rope guards. All work performed by Lessee on the
Ship lift Facility platform shall comply with all requirements of the State Department of
Environmental Conservation concerning intrusion into the water. Under no circumstances
will Lessee perform any sandblasting or heavy steel work on the Ship lift Facility platform.
Section 6.05 - Port and Harbor Tariff. Subject to any applicable provisions of the
Operating Agreement, City may amend the regulations and fees for use of its Port
Facilities from time to time, provided no such amendment may impose any greater burden
or higher rate upon Lessee than upon any other similar user of the City's Port Facilities.
`10010
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ARTICLE 7
Termination or Expiration of Lease Term
Section 7.01 - Lessee's Duty to Surrender. At the expiration or earlier termination
of the Lease Term; Lessee shall surrender to City the possession of the Premises.
Surrender or removal of improvements, fixtures and trade fixtures shall be as directed in
Section 7.03. Lessee shall leave the surrendered Premises and any other property in
good and broom-clean condition except as provided to the contrary in provisions of this
Lease on maintenance and repair of improvements. All property that Lessee is required
to surrender shall become City's property at the expiration or earlier termination of the
Lease Term. All property that Lessee is not required to surrender but that Lessee does
abandon shall, at City's election, become.City's property at the expiration or early termina-
tion of the Lease Term.
If Lessee fails to surrender the Premises at the expiration or earlier termination of
the Lease Term, Lessee shall defend and indemnify City from all liability and expense
resulting from the delay or failure to surrender, including, without limitation, claims made
by any succeeding tenant founded on or resulting from Lessee's failure to surrender.
Section 7.02 - Holding Over. This Lease shall terminate without further notice at
expiration of the Lease Term. Any holding over by Lessee after expiration shall not
constitute a renewal or extension or give Lessee any rights in or to the Premises except
as otherwise expressly provided in this Lease.
. Section 7.03-Disposition of Improvements. At the expiration or sooner termination
of the Lease Term:
(a) City may, at its option, demand that Lessee remove from the Premises any
or all improvements, fixtures, inventory and equipment. A demand to take effect at the
normal expiration of the Lease Term shall be effected by notice given at any time not less
than 60 nor more than 180 days before the expiration date. A demand to take effect on
any other termination of the Lease Term shall be effected by notice given in or
concurrently with notice of such termination or within 30 days after such termination.
(b) City may, at its option, retain as its property any improvements constructed
by Lessee on the Premises; provided that if Lessee is not then in default City shall pay
Lessee compensation therefor as provided in Section 7.04. Notice of City's exercise of
this option shall be given at the time prescribed for a notice under (a) of this section.
(c) Provided Lessee is not then in default, Lessee shall have the right to remove
from the Premises at its expense (i) any or all improvements that City has not elected to
retain under (b) of this section, and (ii) any fixtures, inventory and equipment, provided
NW/ )
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all resulting injuries to the Premises and remaining improvements are completely
remedied.
Section 7.04 - Determination of Compensation. If Lessee is entitled to compensa-
tion for any improvements retained by City under Section 7.03(b), City shall pay Lessee
an amount equal to the'documented cost of acquiring, constructing and installing the
improvements, less accumulated depreciation of the improvements as reported on
Lessee's federal income tax returns.
Section 7.05 - Option to Terminate Lease. Upon, the expiration or sooner
termination of the Operating Agreement for any reason permitted under the terms of the
Operating Agreement, City shall have the option, in its sole discretion, to terminate this
Lease upon 30 days' notice to Lessee. City may exercise this option by sending the
required notice to Lessee at any time within one year after the expiration or sooner
termination of the Operating Agreement.
Section 7.06- Option to Renew Operating Agreement. At the end of the initial term
and each renewal term of the Operating Agreement,. Lessee shall have the option to
renew the Operating Agreement for a renewal term ending on the earlier of (i) the date
five* years after the expiration of the current term or renewal term of the Operating
Agreement, and (ii) the date of expiration of the Lease Term.
Nod
(a) The exercise of an option to renew the Operating Agreement under this
section shall be subject to the following conditions:
. (1) The Lease Term shall not have expired before the date the renewal
term of the Operating Agreement would commence.
(2) Lessee shall not be in default under this Lease at the time the option
is exercised.
(b) Lessee shall give City written notice of the exercise of an option to renew
the Operating Agreement under this section not later than 180 days before the date of
expiration of the current term of the Operating Agreement.
•
ARTICLE 8
Sublease or Assignment
Section 8.01 - Assignment of Lease or Subleasing. The parties recognize that a
material reason for the finding by the City Council of Seward that it is in the public interest
to lease the Premises to Lessee is Lessee's experience and history as a Seward owned
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and operated business and prior participation in development of vessel repair and
construction facilities in the City of Seward. Except as provided in Section 8.02 through
8.04, any assignment of this Lease or sublease under this Lease by Lessee shall be void,
and any attempt by Lessee to assign this Lease or sublet under this Lease gives City the
right immediately to terminate this Lease.
Section 8.02 - Subleasing. NOthwithstanding Section 8.01, Lessee may sublet
portions of the Premises for operations related to vessel repair and construction, provided
that:
(a) The sublessee and the terms of the sublease shall be subject to approval
by City;
(b) Lessee shall remain responsible for compliance with all the provisions of this
Lease with respect to the subleased portion of the Premises; and
(c) City shall participate in any sublease rentals exceeding the rent payable
hereunder that is attributable to the subleased portion of the Premises.
Section 8.03 - Assignment. Notwithstanding Section 8.01, Lessee may assign its
entire interest under this Lease to a person to whom Lessee sells its vessel repair and
construction business, provided that the assignee and the terms of the assignment shall
be subject to approval by C .
Section 8.04 - Assignment of Lease for Security. Notwithstanding Section 8.01,
Lessee may assign, encumber or mortgage the leasehold or improvements on the
Premises, by deed of trust or other security instrument,to an institutional lender to finance
the cost of improvements to be constructed on the Premises, subject to the following
conditions:
(a) The deed of trust shall provide that all notices under the note and deed of
trust must be sent to City and that City shall have the right to cure any default if Lessee
fails to do so. City shall have 30 days to cure any default after the time for Lessee to
cure it has expired. Neither City's right to cure any default nor any exercise of that right
shall constitute an assumption of liability under the note or deed of trust.
(b) The deed of trust beneficiary shall not be liable to perform Lessee's
obligations under this Lease until the beneficiary acquires Lessee's rights by foreclosure
or assignment in lieu of foreclosure. After thus acquiring Lessee's rights, the deed of trust
beneficiary shall be liable to perform Lessee's obligations only until beneficiary assigns
or transfers the leasehold as permitted by this Lease.
11%.+
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(c) No assignment or deed of trust permitted under this section may cover any
interest in any real property other than Lessee's leasehold in the Premises and the
improvements thereon. No assignment or deed of trust permitted under this section shall
secure any indebtedness other than an indebtedness of Lessee to finance improvements
to be constructed or installed on the Premises.
(d) After acquiring the leasehold by foreclosure or assignment in lieu of
foreclosure, the deed of trust beneficiary may further assign, transfer or dispose of its
interest; provided that any subsequent assignee, purchaser or transferee shall be bound
by each and every term of this Lease.
ARTICLE 9
Indemnity; Insurance
•
Section 9.01' - Lessee's Duty to Indemnify. In addition to any other duty to
indemnify or defend City, Lessee shall defend, indemnify and hold harmless City from any
and all claims, actions and demands for death or injury to persons or damage to
property, arising from the use of the Premises during'the Lease Term by Lessee,
Lessee's contractors, agents, officers, employees and invitees, or the general public.
Section 9.02 - Insurance Requirements. During the Lease Term, Lessee shall
procure and maintain at its expense the insurance described in this section subject to the
terms and conditions set forth in this section.
(a) Lessee shall procure and maintain the following insurance under this Lease:
(1) Commercial general liability and automobile insurance, with limits of
liability of $5,000,000 for all injuries, deaths or property damage resulting to any one
person and $5,000,000 limit from any one occurrence. Coverage under such insurance
shall also include explosion, collapse and underground property damage hazards. Such
insurance shall include a blanket contractual liability endorsement. For non-owned
watercraft of Lessee or its customers any "watercraft exclusion" in the commercial liability
insurance policy shall be eliminated. Protection and indemnity insurance shall be provided
with the same limits as the commercial liability insurance for the use.,of Lessee-owned
watercraft.
(2) All risk physical damage insurance for any buildings, equipment,
machinery or any other property stored or being worked on by Lessee upon the premises
at replacement value rather than original cost.
Nmid
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(3) Workers Compensation Insurance and insurance under the Harbor
Workers and Longshoremen's Compensation Act.
(4) Coverage for vessels in the care, custody or control of Lessee (ship
repairer's liability) with limit of liability of $5,000,000.
(5) Environmental impairment liability or pollution legal liability insurance
for all off-Premises bodily injury and property damage to parties other than Lessee caused
by pollution emanating from the Premises, with limit of liability of $1,000,000.
(6) Marine Liability Insurance and any other insurance required under any
permit or tariff of City.
(b) The minimum amounts and types of insurance required under this Section
shall be subject to revision in accordance with standard insurance practices, in order to
provide continuously throughout the Lease Term a level of protection consonant with
good business practice and accepted standards in the industry. Such factors as
increases in the cost of living shall be utilized in assessing whether the minimum
insurance requirements should be increased. City shall notify Lessee of any required
increase in insurance coverage.
(c) All insurance policies shall provide for 30 days' notice to City of cancellation
and/or material change in policy terms. 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. Lessee shall furnish City, on forms supplied by City, certificates
evidencing that it has procured the insurance required herein prior to the occupancy of
the leased land or operation by Lessee. 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.
(d) Commencing on January 1., 1996, and annually thereafter throughout the
Lease Term, Lessee shall procure and submit to City a written report from a reputable
insurance broker acceptable to City that the broker has reviewed the types and amounts
of coverage of insurance obtained by Lessee and the operations of Lessee and in the
opinion of the broker the coverage complies with Lessee's obligations under this Lease.
(e) All of the insurance policies required above as well as any other insurance
carried by Lessee or City shall provide that the insurers waive their rights of subrogation V
against City and Lessee and their respective officers, servants, agents or employees.
Lessee further agrees to waive and agrees to have its insurers waive any rights of
subrogation (whether by loan receipts, equitable assignment or otherwise), with respect
to deductibles under such policies and with respect to damage to equipment including ,
the loss of use thereof, whether insured or not. Lessee shall also name City as an V
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additional insured on the general liability insurance policy maintained by Lessee as
required above, excluding coverage for claims resulting from City's sole negligence.
Lessee shall promptly and without request by City supply City copies of all insurance
binders and policies. •
ARTICLE 10
Condemnation
If all or any part of the Premises 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 Premises is condemned for public use, Lessee shall make
a good faith determination as to whether or not the taking of the part of the Premises
) designated for condemnation will prevent it from continuing to operate on the Premises.
If Lessee determines in good faith that the condemning of such part of the Premises will
prevent it from continuing to operate on the Premises, Lessee may notify City in writing
to this effect, and this Lease shall then be terminated for all purposes effective 15 days
from the date Lessee sends such notice to.City, or at such other later date as Lessee
shall specify in its notice, and such termination shall be treated in the same manner as
a termination at the expiration of the Lease Term. Lessee shall, as a condition precedent
to such termination, remove all encumbrances, debts and liens to which the Premises 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 to be effective on the actual date
when Lessee is effectively prevented from utilizing the condemned land.
ARTICLE 11
Default: Remedies
Section 11.01 - Events of Default. Each of the following shall be an 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:
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--,;
(a) Failure by Lessee to pay promptly when due the rent required to be paid
under this Lease.
(b) Failure by'Lessee to observe, fulfill or perform any covenants, conditions or
agreements on its part to be observed or performed under this Lease for a period of 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.
(c) 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 which shall remain undismissed for a period of six months from
the date of commencement thereof.
- The foregoing provisions of this section are subject to the following limitations: if
by reason of Force Majeure, Lessee is unable in whole or in part to carry out any of its
agreements on its part herein contained, other than any obligation of Lessee to pay
money, it shall not be deemed an Event of Default during the continuance of such
inability. Lessee agrees, however, to use all reasonable efforts to remedy with all
reasonable dispatch the cause or causes of its failure to carry out its obligations under
this Lease; provided, that the settlement of strikes, lockouts and other industrial
disturbances shall be entirely within the discretion of Lessee and Lessee shall not be
required to make settlement of strikes, lockouts or other industrial disturbances by
acceding to demands of opposing parties when such course is in the judgment of the
Lessee unfavorable to Lessee.
Section 11.02 - 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:
(a) 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
City of Seward
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MEM&
Uniform Commercial Code (A.S. 45.09.504) with respect to sale of property shall be a
commercially reasonable disposal.
(b) City may re-enter the Premises and take possession thereof and, except for
any personal property of Lessee which City has waived its right to distrain under sub-part
(a) above, remove all personal property of Lessee from the Premises. 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.
(c) Declare this Lease terminated.
• (d) Collect any and all rents due or to become due from sub-tenants or other
occupants of the Premises.
(e) Recover,whether this Lease be terminated or not,damages incurred by City
by reason of the breach or default by Lessee.
(f) Recover an amount to be due immediately on breach equal to the rent
reserved under this Lease discounted to the date of such breach at the rate of eight
percent (8%) per year. If the Premises or any part thereof be re-let by City for the *or
unexpired Lease Term, City shall reimburse to Lessee upon receipt an amount not to
exceed the amount received by City under this paragraph.
(g) If Lessee does not immediately surrender possession of the Premises after
termination by City and upon demand by City, City may forthwith enter into and upon and
repossess the Premises 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.
(h) 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 in this Lease.
(i) 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.
*NO
City of Seward
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'Now
Section 11.Q3 - No Waiver of Breach. No failure by City to insist upon the strict
performance by Lessee 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 12
Dispute Resolution
Section 12.01 - Submission of Claims. All Claims by a party shall be submitted to
the other party by written notice. The responsibility to substantiate a Claim shall rest with
the party making the Claim. A Claim by either party must be made within 30 days of the
event giving rise to the Claim, or the date the claimant first recognizes the condition giving
rise to the claim, whichever occurs later. If a Claim is not resolved within 60 days of its
submission under this section, the claimant may submit the claim to Arbitration under
Section 12.02. Unless the parties agree otherwise in writing, a claim is waived if not
't!lw submitted to Arbitration under Section 12.01 within 90 days of the giving of the initial
' written notice of the Claim under this section.
Section 12.02 - Arbitration. (a) All Claims shall be decided by Arbitration, in
accordance with this section. A Claim may not be submitted to Arbitration unless it was
the subject of a timely notice under Section 12.01.
(b) Consent Panel. The party desiring Arbitration of a dispute shall give written
notice to that effect to the other party specifying in such notice the name and address of
a person to serve as an arbitrator on its behalf. Within 15 days after receipt of such notice
the other party shall give written notice to.the first party specifying the name and address
of a person designated to serve as an arbitrator on its behalf.
If neither party has objected to the other's designation within fifteen (15) days of
the notice by the second party of its representative of an arbitrator, then the two chosen
arbitrators (called the "consent panel") shall select a third person agreeable to both to
become the third member of the consent panel. The consent panel may utilize informal
techniques and hold informal hearings without reference or adherence to the rules or
procedures of the American Arbitration Association. Promptly and within thirty (30) days
of concluding any proceeding the consent panel shall render its written decision. It is the
intent of this subsection to provide for a speedy and inexpensive resolution of disputes
provided the parties agree to such a procedure.
44••■
City of Seward
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•
(c) Formal Arbitration. If either party objects, within fifteen (15) days of the
second party's designation of an arbitrator to the others choice of an arbitrator pursuant
to paragraph (b) above, or the first party initially decides not to use the consent panel
procedure, then the matter shall be promptly referred to the American Arbitration
Association in accordance with the then existing rules of the American Arbitration
Association.
(d) Arbitration Awards. Any award by either a consent panel or as a result or
proceedings before a panel pursuant to the rules of the American Arbitration Association
shall be enforceable in accordance with Alaska Statutes. Any award shall include an
award of costs, interest and attorney fees.
ARTICLE 13
Maintenance and Repairs of Premises
Section 13.01 - Normal Maintenance. During the entire Lease Term, Lessee shall,
at Lessee's sole cost, risk and expense, maintain the Premises, including any improve-
ments placed thereon by Lessee, in as good condition as received or constructed by
Lessee, ordinary wear and tear excepted. Lessee shall maintain in first class condition 7—
at all times all fire, pollution and other protective equipment.
Section 13.02- Inspection of Premises. City may periodically inspect the Premises
and facilities constructed thereon in order to ascertain the condition of the Premises but
the exercise of this right shall not imply any obligation to do so nor any obligation to do
so in any particular way.
Sectio 13.03-Taxes. Assessments and Other Charges. Lessee shall pay all real
and personal property taxes, sales taxes, special assessments, and other charges of
every description levied on or assessed against the Premises, improvements on the
Premises, personal property located on the Premises, the Leasehold estate, or Lessee's
business operations located on the Premises, to the full extent of installments falling due
during the Lease Term. Lessee shall make all such payments before delinquency and
before any fine, interest, or penalty shall become due or be imposed by operation of law
for their nonpayment; provided that Lessee may pay any such payment in installments
where permitted by law, but shall pay any installment with interest before delinquency.
Lessee may contest the legal validity or amount of any tax, assessment or charge for
which Lessee is responsible under this Lease. If Lessee contests any such tax,
assessment or charge, Lessee may withhold or defer payment or pay under protest but
shall protect City and the Premises from any lien by surety bond or other appropriate
security.
City of Seward
Ground Lease Page 24
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Section 13.04 - Fire Protection. Lessee shall at its sole cost, risk and expense
provide fire protection to its operations on the Premises and fire prevention to industry
standards for risks to adjacent port 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 years.
Section 13.05 - Parking. Lessee, at its own expense, shall establish one or more
parking areas on the Premises and will encourage Lessee's employees to use same. The
parking area or areas shall provide sufficient parking spaces to accommodate (i) all of
Lessee's employees who are employed on the Premises; and (ii) all customers and other
visitors to the business conducted by Lessee on the Premises; provided that the minimum
number of parking spaces that Lessee shall provide on the Premises shall not be less
than the minimum number of spaces required for an industrial processing, manufacturing
and assembling use under City's zoning ordinance as amended from time to time.
‘tilow ARTICLE 14
•
Miscellaneous
•
Section 14.01 -Time. Time is of the essence of each provision of this Lease. The
time in which any act is to be performed under this Lease 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.
Section 14.02- 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.
Section 14.03 - Relationship of Parties. Nothing in this Lease, and no performance
of either party hereunder,shall cause the relationship of the parties to be that of principal
and agent, partners or joint venturers, or cause the parties to be associated in any
manner other than as lessor and lessee.
Section 14.04 - Covenants. All the provisions of this Lease shall be deemed as
running with the land.
aw- ) City of Seward
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Section 14.05- Estoppel Certificates. Either party shall at any time and from time
to time upon not less than 10 days' prior written request by the other party, execute,
acknowledge, and deliver to such party, or to its designee, a statement in writing
certifying that this Lease is unamended and in full force and effect (or, if there has been
any amendment thereof, that the same is in full force and effect as amended and stating
the amendment or amendments), that there 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.
Section 14.06 - Notices. All notices required or authorized to be given by either
party under this Lease shall be in writing and shall be served personally or sent by
registered mail as follows:
City of Seward
P.O. Box 167
Seward, Alaska 99664
Attention: City Manager
Seward Ship's Drydock, Inc.
P.O. Box 944
Seward, Alaska 99664
Nod
Attention: President
•
Notice by mail shall be deemed to have been given at the time of mailing. Each
of the above addressees may, by written notice to the other, designate any further or
different addresses to which subsequent notices shall be sent. In addition; the parties
hereto may agree to any other means by which subsequent notices may be sent.
Section 14.07- Binding Effect. This Lease shall inure to the benefit of and shall be
binding upon City and Lessee and their respective successors and assigns.
Section 14.08 - Severability. In the event any provision of this Lease shall be held'
invalid or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provisions hereof.
Section 14.Q9 - Amendments. This Lease may be amended only by a writing
signed by City and Lessee.
Section 14.10 - Execution in Counterparts. This Lease may be simultaneously
executed in several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
City of Seward IIId
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Noir
Section 14.11 - Applicable Law: Jurisdiction. This Lease shall be governed by and
construed in accordance with the laws of the State of Alaska. Any civil action brought by
any party under this Agreement shall be commenced and maintained in the Superior
Court, Third Judicial District, State of Alaska, at Anchorage.
Section 14.12 - Captions. The captions or headings in this Lease are for
convenience only and no way define, limit or describe the scope or intent of any
provisions or sections of this Lease.
IN WITNESS WHEREOF,the parties have executed this Agreement as of the
date first written above:
City: Lessee:.
CITY OF SEWARD SEWARD SHIP'S DRYDOCK; INC.
„ 11
Tyler/Jones 01-LA ‘12ti-ze-,
r Jones Ja es T. Pruitt
*Nov City Manager President
ATTEST:
vioismertt4
44 SEIV
................ ,
0„,,
. •
s
34-1.--Linda S. Murphy, CMC/AAE
U City Clerk • ( SEAL •
APPROVED AS TO FORM:
4, OF N
-18:1,11 1 1 WS'
WOHLFORTH, ARGETSINGER,
JOHNSON & BRECHT
Attorneys for the
City of Seward
(L)
Thomas F. Klinkner
0' ) City of Seward
Ground Lease Page 27
AMM001132
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52
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
The foregoin• '. trument was acknowledged before me this day of June
1995, by Tyler Jones, City Man. . - of the City of Seward, Alaska, on behalf of the City.
Notary for the - - of Alaska
My Commission Expire .
STATE OF ALASKA ) •
) ss.
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this 1 4 d y of June
1995, by James T. Pruitt, President of Seward Ship's Drydock, Inc., • an Alaska
corporation, on behalf of the corporation.
)
` %%titfff���
\\\x‘01A ;,. " Qom; .� ,�
QQ.• O ' Notary for the State of Alaska•
" ti • My Commission Expires: 3 c I(o(q c
//ii/�kaFIA`x`-`\
City of Seward
Ground Lease Page 28
AMM001e2
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53
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Commencing at the northeast corner of United States Survey No. 4827 from a 5/8" x 30" rebar with
an aluminum cap located, thence along the easterly line of said USS 4827. South 00°3413" East
1.458.02 feet; thence leaving said easterly line at a right angle thereto. South 89°25'50" West 850.80
feet to the TRUE POINT OF BEGINNING: thence South 89°25'50" West 425.00 feet: thence South
00°3413" East 605.00 feet;thence North 8902550" East 425.00 feet; thence North 00°3413" West
605.00 feet to the TRUE POINT OF BEGINNING, containing an area of 257.125 square feet more
or less. Said property is located at 3306 Sorrel Road within the Seward Marine Industrial Center.
at Fourth of July Creek and is also described as Lot 1. Block 7. Seward Marine Industrial Center.
Fourth of July Creek Subdivision(preliminary plat)_all within the Seward Recording District. Third
Judicial District, State of Alaska.
• •
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020142
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41141Pr
LEASE 95-094 AMENDMENT NO. I
THE CITY OF SEWARD„ALASKA, a home rule municipal corporation, organized and
existing under the laws of the state of Alaska, hereinafter referred to as "CITY", and SEWARD
SHIP'S DRYDOCK, INC.,P.O. Box 944, Seward, Alaska 99664-0944, hereinafter referred to as
"LESSEE," hereby agree that the Lease between them for Lot I Block 7, Fourth of July Creek
Subdivision Seward Marine Industrial Center, and originally approved by City of Seward Resolution
95-001 is hereby amended as follows:
Delete ARTICLE I. --LEASED LAND, in its entirety and substitute in its stead:
ARTICLE I. --LEASED LAND. The Leased Land is located in the City of Seward, Alaska. The
Leased Land is described as follows:
Lot 1 Block 7, Fourth of July Creek Subdivision, Seward Marine Industrial
Center, Kenai Peninsula Borough Preliminary Plat No. 97-108, recorded as
Plat No.ct7-Z7 in the Seward Recording District, Third Judicial District,
State of Alaska. The total leased area is 5.811 acres more or less.
In all other respects the lease as previously amended is to remain unchanged and in full force between
the undersigned.
IN WITNE,SS WHEREOF, the parties hereto have executed this document, and it is
effective this 4,2er'day of „, 1997.
LESSOR: LESSEE:
CITY OF SEWARD, ALASKA SEWARD SEEP'S DRYDOCK,
•
• "< f‘s
By: LL c: James T. Pruitt
Acc.6,,,Ck City Manager Its: President
ATTEST:
Patrick gOily.;7eity,Ctej-)t
Lew 9$ 094 Amendment go.
58
' --
D.C1
LEASE MEMORANDUM Nuw,
(WITH RENTAL AMOUNT OMITTED FOR RECORDING)
NOTICE IS HEREBY GIVEN that a lease between the CITY OF SEWARD, ALASKA, PO Box
167, Seward, Alaska 99664, a home rule municipal corporation located within the Kenai Peninsula
Borough, State of Alaska, herein called "LESSOR," and SEWARD SHIP'S DRYDOCK, INC. . PO Box
944, Seward, Alaska 99804. herein called "LESSEE,"was made regarding the following described real
property:
Commencing at the northeast corner of United States Survey No. 4827 from a5/� x
30" rebar with an aluminum cap located, thence along the easterly line of said USS
4827, South 0O"84'13" East 1.458.O2 feet; thence leaving said easterly line at a right
angle thereto, South O8r25'5n''West 850.80 feet to the TRUE POINT OF BEGINNING;
thence South 89"25'58"West 425.00 feet; thence South 00"34'10" East 605.00 feet;
thence North 89"25'50^ East 425.00 feat; thence North 00°34'13"West 605.00 feet to
the TRUE POINT OF 8EQ|NNiNQ, containing an area of 257,125 square feet more or
less. Said property is located at 8306 Sorrel Road within the Seward Marine Industrial
Center, at Fourth of July Creek and is also described as Lot 1, Block tSeward Marine
Industrial Center, Fourth of July Creek Subdivision (preliminary plat), all within the
Seward Recording District. Third Judicial District, State of Alaska.
The effective lease term is April 25, 1995 through June 30, 2009. LESSEE shall have the right
to extend the lease term for one or more additional periods that shall not, in total, exceed 20 years or
cause the lease term to expire later than midnight on June 30` 2029. The original lease is on file and
available for public review in the Harbormaster's Offioe. 130O Fourth Avenue, PO Box 187` Seward,
Alaska 39684.
IN WITNESS WHEREOF, the parties hereto have respectively signed this memorandum on the
dates below written.
LESSOR: LESSEE:
CITY OF SEWARD, ALASKA SEWARD SHIP'S DRYDOCK, INC.
(
l /
+d� �= / 1�/ ��_-��^c^^��-
[���`��. City Manager James T. Pruitt, President
/
Date: 3 /'�7 -'� Date: 7.;.),/,:),,,1/4)7
ATTEST: SUBMITTED BY:
P66-0`R6illy''OrWeleV '�.
�k . ~ '
MEMORANDUM CF LEASE Page
Seward Ship's Dryd . Inc
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STATE OFALASKA )
/ ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY tha on this �� /lo {_. 1 undersigned, a
Notary Public in and for the State ko. personally appeared gic.k_ L. 6/N:f:0r11_. known to
me and to me known to be the city manager for the City of Seward, A|aoka, and authorized
to execute documents on its behalf, and is the individual named in and who executed the foregoing
document on behalf of the City of Seward for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year first h i b written,
'7 / L?"'''''''‘ 1 ,
rz r., (// d ce-.). Cil(/.0 - IN ..//' -,-;;) -\('-'11
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: state 0 f.41';; .4 a . N . Public in and for Alaska
' �-''` - ''^~`'' Commission Expires: J/
SlATE OF ALASKA )
) sn.
THIRD JUDICiAL DISTRICT )
THIS IS TO CERTIFY that on this.fa/�^day of . 1onj before me, the undersigned, a
Notary Public in and for the State of Alaska, personally appeared James T. Pruitt, known to me and to
me known to be the president of SEWARD SHIP'S DRYDOCK, INC., and acknowledged to me that the
foregoing instrument was executed by him in his official ompooi\y, pursuant to the authorization set forth
in the by-laws of said corporation, and that the same was executed as the free and voluntary act and
11116. deed of the corporation for the uses and purposes therein set forth.
WITNESS my hand and nbtarial seal the day and year first hereinabove written.
/1
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�v / /M// ` '� ./'
Notary Public in and for -
My Commission Expires: VW /// ^�r.ki/
Return to: Harbormaster
CITY OF SEWARD
PO Box i07
Seward, AK 39664
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MEMORANDUM OF LEASE '?'1371,:,,:,,,„,�� � ���� myoe
Seward ship's D�Uuok. Inc.
S - D`��o,��cU �`�/__:���_r�_``-- -\ 'ID
LEASE AMENDMENT NUMBER 2
(RE-95-094)
THE CITY OF SEWARD,ALASKA,a home rule municipal corporation,organized and
existing under the laws of the State of Alaska, hereinafter referred to as "City," whose mailing
address is P. O. Box 167, Seward, Alaska 99664, and SEWARD SHIP'S DRYDOCK, INC.,
hereinafter referred to as"Lessee,"whose mailing address is P.0.Box 944,Seward,Alaska 99664,
for and in consideration of the mutual promises and covenants hereinafter contained,hereby agree
that the lease dated April 25, 1995 between them for the real property described in attached Exhibit
A, hereby incorporated by reference (the "Lease"), is hereby amended as follows:
DELETE Section 3.05 within Article 3. RENT and substitute, in its stead, the following:
Section 3.05 -Rent Credits For Deferred Maintenance. Lessee shall be allowed as a credit
not exceeding the amount of Rent due from the commencement of the Lease Term through
December 31, 2004, for the amount actually expended by Lessee through December 31, 2004 for
Deferred Maintenance or replacement of shiplift cables. Lessee shall receive this credit as follows:
(a) Lessee may deduct from any Rent payment due during the period ending December
31, 2004, the amount by which (i) the amount actually expended by Lessee for Deferred
Maintenance or replacement of shiplift cables, exceeds (ii) Rent for which Lessee already has
received a credit under this section.
(b) At the end of each Fiscal Year ending before January 1, 2005, City shall refund to
Lessee from Rent due and paid on or before the end of each such Fiscal Year, an amount by which
(i) the amount actually expended before the end of such Fiscal Year by Lessee for Deferred
Maintenance or replacement of shiplift cables, exceeds (ii) Rent for which Lessee already has
received a credit under this section.
In all other respects, the Lease is to remain unchanged and in full force between.the
undersigned parties.
IN WITNESS WHEREOF,the parties have executed this document and it is effective this
day of January, 2000.
CITY: LESSEE:
THE, CITY OF SEWARD SEWARD SHIP'S DRYDOCK,INC.
By: W. Scott Janke By: James T. Pruitt
Seward Shins Orydo_k.Inc.
Ground Lease Arnendment
.J OOCSl433741 iG'SSOt.easeterendmentt Page 1
*410
61
illiliw
STATE OF ALASKA )
)ss.
THIRD JUDICIAL,DISTRICT )
THIS IS TO CERTIFY that on this ,:-/c74- day of i,,i,C ei I r"=';; 199'I before
me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared
,,; ,^.c.:t ."./ .undersigned,
t:": known to me and to me known to be the individual named
in_a d who executed the foregoing document, and acknowledged to me that he signed and sealed the
same of his voluntary act and deed for the uses and purposes therein mentioned.
�,1_C^ `S A,° WITNESS my hand and notarial seal the day and year first hereinabove written.
i�€O' �lt' ` , ._ i.r rte' i.
,,r t..,„-,•' ,y 1.I� )i(:Gu.e...,L L• __% G._ ,_:)t;v.1-it;,
Notary Public in and for Alaska
9-
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Sri /.
rM1'_ 1
- _.Lg1 L, OF ALASKA )
)ss.
ruIRI) JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this �-, x_.i.) day of i1.`
kao;ti/),E-;-- , 199 ),
before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared
P. C. ' L. co . E_c'\co..__._._...._......... known to me and to me known to he the individual
named in and who executed the foregoing document, and acknowledged to me that he signed and
sealed the same of his voluntary act and deed for the uses and purposes therein mentioned.
WITNESS my hand and notarial seal the day and year first. hereinabove written.c
`; -..otsori.,�c.,.x).ts,,.�.,,..yorm t `r(/ r„ ,,”y �,/,0., may/-�oi.rii
A i
,4 Alit?caf;Itrss a c. Notary Public in and for Alaska
c 1V t i s �R WELSH
NO I APO" t Commission Expires: r/
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RETIJRP! TO: Community Development Dept. "jet
CITY OF SEWARD ;i.::t -,IY331)- P. .. IC��-1:>
P.0. BOx .167 ;'2t,s.'3rrp R ror(ihi').DiG_ri {l -(:5.:
Seward, AK 99664 =� t'�.;�
1:,.;:.I�:sI d by --1,_.�,,;.�_ i,,, c, :.:.Xi.: ,
Lease 95-094 Amendment No. 1 2
62
•
LEASE No: RE-95-094
LESSOR: CITY OF SEWARD
LESSEE: S.EWA.R.D SHIP'S I:)RYDOC.K, INC.
GROUND LEASE AMENDMENT NO. 3
This Lease was originally recorded in Book 89, beginning at Page 248, Seward
Recording District,Third Judicial District, State of Alaska.
This Lease Amendment No. 3 contains 7 pages, and one Attachment A
This cover sheet has been added to this document by:
City of Seward, l Iarbor Department
To provide space for recording data. This cover sheet appears as the first page of the
document in the official public record.
63
D bci
GROUND LEASE AMENDMENT NO. 3
This Ground Lease Amendment No. 3 ("Lease Amendment No. 3") is between the
City of Seward, Alaska, an Alaska municipal corporation ("City"), whose address is P.O.
Box 167, Seward, Alaska 99664, and Seward Ship's Drydock, Inc., an Alaska business
corporation ("Lessee"), whose address is P.O. Box 944, Seward, Alaska 99664, who are
lessor and lessee, respectively, under that certain Ground Lease dated April 25, 1995 of
certain real property located within the Seward Marine Industrial Center,. Seward, Alaska
(the"Lease"). City and Lessee are also parties to that certain Maintenance and Operating
Agreement dated March of 2000 pertaining to the syncrolift shiplift system located in the
Seward Marine Industrial Center adjacent to the leased premises (the "Operating
Agreement"). This document amends the Lease as set forth herein.
Item 1, Article 1 -Definitions, DELETE the definition of"Operating Agreement," and
substitute in its stead, the following new definition:
"Operating Agreement" means the Maintenance and Operating Agreement
between the City and Lessee dated March 30, 2000, as amended from time
to time.
Item 2. Parcels 1 and 2 designated on Attachment A hereto ("Parcel 1" and
‘10, "Parcel 2") are added to the leased Premises, and will require a new plat therefor, The two
parcels shall be surveyed and platted in accordance with the ordinances and regulations
of the Kenai Peninsula Borough ("Borough") at Lessee's expense with a) Parcel 1
becoming part of a single lot including the existing leased premises and including the
portion of Sorrel Road lying within Parcel 1 which portion shall be vacated as an access
right-of-way, and b) Parcel 2, including the rails, becoming a second lot. Both parties shall
support such platting in proceedings before the Borough. Approval and recording of such
a final plat of the parcels within Two Hundred Seventy (270) days following the effective
date of this Lease Amendment No. 3 to the mutual satisfaction of the parties is a condition
subsequent to the full enforceability of this Lease Amendment No. 3, as provided in Item
8.
Item 3. Article 3 - Rent. DELETE Section 3.01 - Amount of Rent and substitute in
its stead, the following new "Section 3.01 - Payment of Rent:"
Section 3.01 -Payment of Rent. Commencing on the effective date of Lease
Amendment No. 3 through December 31, 2004, the annual rent for the
Premises ("Rent") shall be set at $44,912.00, subject to the results of the
survey described in Item 2 of Lease Amendment No. 3. The portion of Rent
for the additional land, approximately 4 acres, added by Lease Amendment
No. 3 shall be $16,912.00 per year provided that upon completion of the
survey and platting in Itpm 2 of,Lease Amendment No, 3, the portion of the
Rent paid for.the additional land shall be adjusted for the actual square
footage and any overpayment will be promptly refunded or any amount due
64
., : 09
shall be promptly paid. Subject to Section 3.05 - Annual Rent Credits for
Deferred Maintenance, Rent shall be payable quarterly in advance upon the
effective date of Lease Amendment No. 3 (prorated for the balance of the
current quarter) and thereafter on or before the 1st day of the month
beginning each calendar quarter: January 1, April 1, July 1 and October 1.
The amount of each quarterly payment shall be one-quarter of the Rent.
Item 4. Article 3 - Rent, "Section 3.02 - Payment of Rent." DELETE "Section
3.02( " in its entirety.
Item 5, Article 3 - Rent. DELETE Section 3.05 - Rent Credits for Deferred
Maintenance and substitute in its stead, the following new"Section 3.05 - Rent Credits for
Deferred Maintenance":
Section 3.05 - Rent Credits for Deferred Maintenance. Lessee shall be
allowed a credit to be offset against a portion of Rent due on Parcel 1 from
the commencement of the Lease Term through December 31, 2004, for the
amount actually expended by Lessee through December 31, 2004 for
Deferred Maintenance or replacement of shiplift cables. "Deferred
Maintenance" shall have the meaning as defined in the Operating
Agreement. Lessee shall receive this credit as follows:
(a) Lessee may deduct from the portion of each Rent payment due
through December 31, 2004 allocable to 5.811 acres of Parcel 1 the amount
actually expended by Lessee for Deferred Maintenance or replacement of
shiplift cables during that period.
(b) For the 5.811 acres of the Premises eligible for rent credits
only, Rent for the period through December 31, 2004 may be paid in arrears
and shall be due and payable and is conditioned upon delivery of the
statements as required by Section 3.05 of the Operating Agreement. In no
event shall rent credits exceed the Rent allocable to 5.811 acres of Parcel
1.
(c) Failure of Lessee to verify the Rent credits annually by
submitting the statements per Section 3.05 of the Operating Agreement in
a timely manner, and to pay the remainder of any Rent due under the Lease
will subject the Lessee to a monthly late charge of $2.50 plus finance
charges of 10.5% per annum on that portion of the Rent remaining unpaid,
beginning the day after which such statements are due.
Ground Lease Amendment No. 3- Page 2
CA VF,NDOWSi!'F_MPISSIALwceArnendment No 3 wpd
1/1i)
109 C)
Item 6. Article 4 - Use of Premises. ADD new "Section 4.07 - Additional Leased
Land:"
Section 4.07 -Additional.._Leased Land. Lessee shall have possession and
quiet enjoyment of the additions to the Premises described herein as of the
effective date of Lease Amendment No. 3, subject to Section 7.07. Lessee
acknowledges that it has inspected the Premises and accepts the same"as-
is" and without reliance on any expressed or implied representations or
warranties of City, its officers, employees or agents as to the presence of any
Hazardous Material, the actual physical condition or characteristics thereof,
and the legal description or depiction of the Premises. Lessee has been the
operator on the Premises since April 25, 1995 and on a portion of Parcel 1
since 1988.
Item 7. Article 4 - Use of Premises. ADD new "Section 4.08 - Public Access."
Section 4.08 - Public'Access. Lessee shall conduct its operations on the
Premises in a manne'rthat will maintain public access to the Shiplift Facility
over land owned by the City as required by the U.S. Department of
Commerce, Economic Development Administration.
Item 8. Article 7-Termination or Expiration of Lease Term. ADD new"Section 7.07 -
.,Failure,of Condition Subsequent:"
Section 7.07 - Failure of Condition Subsequent. If the condition subsequent
described in Item 2 of Lease Amendment No, 3 does not occur in the time
and in the manner as set forth therein, the Lease shall be terminated
immediately as to the additional land described therein. Lessee shall pay all
Rent that would have been due for the additional land for the period of
Lessee's possession. The Lease, as amended, shall remain in effect as to
the Premises, as defined without the additional land added in Lease
Amendment No. 3, notwithstanding the failure of the condition subsequent
described herein and the definitions of Premises shall be revised
accordingly. Items 5, 6, 7, 9, and 10 shall survive termination.
Item 9. Article 12 - Dispute Resolution. DELETE Section 12.01 - Submission of
Claims in its entirety and substitute in its stead, the following new "Section 12.01 -
Submission of Claims:"
Section 12.01 - Submission of Claims.
All Claims by a party shall be submitted to the other party by written
notice. The responsibility to substantiate a Claim shall rest with the party
making the Claim. A Claim by either party must be made within 90 days of
Ground Lease Amendment No. 3- Page 3
C:',WINDO`v,/SITE P1SSOLeeseArnendrnM51
N . wpd
66
)0ci 8 (p
the event giving rise to the Claim, or the date the claimant first recognizes
the condition giving rise to the Claim, whichever occurs later. If a Claim is
not resolved within 60 days of its submission under this section,the claimant
may submit the Claim to Arbitration under Section 12.02 and pursuant to the
Alaska Uniform Arbitration Act, AS 09.43.010 et seq. Unless the parties
agree otherwise in writing, a Claim is waived if not submitted to Arbitration
under Section 12.02 within 90 days of the giving of the initial written notice
of the Claim under this section.
Item 10. Article 14 Miscellaneous. ADD the following new "Section 14.14 - Claims":
Section 14.14 - Claims. Lessee assumes all responsibility, risk and liability
for any claim relating to the validity or enforceability of Amendment No. 3.
Lessee shall bring no action and seek no damages or recovery as a result
of a determination that Lease Amendment No 3 is invalid or unenforceable,
in whole or in part, for any reason. Lessee agrees to defend and release the
City, its officials, officers, employees, agents and contractors from any and
all liability for loss or damages resulting from a decision that Lease
Amendment No. 3 is invalid or unenforceable, whether in whole or in part,for
any reason. Lessee shall accept the City's tender of a claim by a third party
against the City that Lease Amendment No. 3 is invalid or unenforceable,
and upon the City's tender shall defend against the claim at Lessee's
expense. Lessee shall not seek or recover damages from the City for any
loss or damages arising from such event. Lessee shall control the defense 'NIES
of the claim but shall not settle the claim without the City's prior written
consent, which shall not unreasonably withheld. The City shall cooperate in
the defense of the claim. In the event Lease Amendment No. 3 is declared
invalid or unenforceable by a court of competent jurisdiction, a) Lessee shall
discharge any judgment in favor of the third party against Lessee or the City,
including costs and attorney's fees incurred in the litigation, but any other
attorneys's fees and costs shall be paid by the party who incurred them, b)
any improvements to the land which was added to the Premises by Lease
Amendment No. 3 shall be subject to disposition in accordance with Section
7.03 of the Lease and c) if a replat has been recorded in accordance with
Item 1 of Amendment No. 3, the Premises shall be replatted to its
configuration as it existed prior to Lease Amendment No. 3, at Lessee's sole
expense. This Section 14.14 is severable and shall survive termination of
this Lease and Lease Amendment No. 3.
Item 11. Exhibit B. DELETE Exhibit B and substitute in its stead a portion of the new
plat to be prepared in accordance with Item 2 of Lease Amendment No. 3.
Item 12. Other Terms of Lease. All terms of the Lease remain in effect and legally
binding upon the parties except as expressly amended herein.
Ground Lease Amendment Nn. 3 - Page 4
cTrANDovvrATEMPASSOLHhisaArnencimkil No 3 wpd
67
The effective date of Lease Amendment No. 3 shall be when signed by both parties
in accordance with Resolution 2001-115 of the City. The parties agree to execute and
record a revised memorandum of lease reflecting the Lease terms as amended.
City: Lessee:
CITY OF SEWARD SEWARD SHIP'S DRYDOCK, INC.
/0/zeic/
•
W. Scott Jank: ' mes T. Pruitt
City Manager President
ATTEST:
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Patrick Reilly
City Clerk,.z,viotnng3,..K
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Ground Lease Amendment No. 3- Page 5
SWINDOWSATEMPV3SDLoaseAfriantiment No.3.wpd
''411111100'
68
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ACKNOWLEDGMENTS, `vid
STATE OF ALASKA
) ss.
THIRD JUDICIAL DISTRICT
THIS CERTIFIES that on this day of , 2001, before me, a
Notary Public in and for the State of Alaska, personally appeared W. Scott Janke, known
to me and to me known to be the City Manager for the City of Seward, Alaska, and
authorized to execute documents on its behalf, and is the individual named in and who
executed the foregoing document on behalf of the City of Seward for the uses and
purposes therein set forth.
IN WITNESS WHEREOF',:jhereurh set my hand an' seal.
A
ota filo in and for Alas
.,
My Co ission Expires: 11-
STATE OF ALASKA
ss.
THIRD JUDICIAL DISTRICT
THIS CERTIFIES that on this :9,i, -- day of iteci,1G-f
k , 2001, before me, a
Notary Public in and for Alaska, personally appeared James Pruitt, to me known to be the
person who executed the foregoing instrument on behalf of Seward Ship's Drydock, Inc.
He acknowledged to me that she/he executed the same freely and voluntarily on behalf of
said corporation. He stated to me under oath that he is the president of the said
corporation, has been authorized by the Board of Directors of the corporation to execute
the instrument on its behalf, and has full power and authority to execute the same.
IN WITNESS WHEREOF, I hereunto set my hand and seal.
till/l,,
plSki„
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0 0 0 1 4 5 , 2002 JAN 31 A II: I L4
SE\'/ARD REOUESTED BY
RECORD'igG DISTRICT'
Ground Lease Amendment No. 3- Page 6
civANDowsvmmptssoix.5,,Amundme.nt No,3 vepd
'411110
69
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GROUND LEASE AMENDMENT NO. 4
This Ground Lease Amendment No. 4 ("Lease Amendment No. 4") is
between the City of Seward, N8ske4 an Alaska municipal corporation ("CUy"`,
whose address is P.O. Box 187, Sevvard, Alaska 99604. and Seward Ship's
Drydock, Inc., an Alaska corporation ("Lessee"), whose address is P.O. Box 044,
Sevva/U, Alaska 99684. who are lessor and |eseee, reapa(tive|y, under that
certain Ground Lease dated April 25, 1905 of certain real property located within
the Seward Marine Industrial Center, Seward, Alaska (the "Lease"). This
document amends the Lease as set forth herein.
|bem1: Lease Term. Section 2.04 is amended to read as follows, with the
intent to allow maximum possible Lease Term extensions to June. 30. 2040:
Section 2.04 - Extension of Lease Term. Lessee may, at its option, extend
the Lease Term for one or more additional periods which shall not, in tatal,
exceed 31 years. Notwithstanding any other provision of this Lease, no
extension of the Lease Term shall cause the Lease Term to expire later
than midnight on June 80. 2040. Lessee shall exercise the option granted
by this section in the manner, and subject to all of the conditions, set forth
in this section.
(a) The exercise of an option to extend the Lease Term under this section
shall be subject to the following conditions:
(1 ) Lessee shall notify Lessor of the exercising of the option in
ihemonnerypacifiedin (b) nfth|neectinn.
(2) Before exercising the Vpi)Vn. Lessee shall submit to City
plans for improvements to the Premises or the Ship lift Facility, an
engineer's or architect's estimate of the cost of the improvements,
and a schedule for 8Cqu|hOg, constructing and installing the
improvements, and City shall have given Lessee its written
approval of the proposed improvements.
(3) Lessee shall designate the portion of The proposed
improvements that it intends to finance with borrowed funda, and
shall provide City with a written commitment from a financial
institution to lend the designated amount to Lessee.
(4) Lessee shall submit to City a written estimate prepared by
the financial institution that has committed to lend funds for the
improvements of the number of years required to amortize the
borrowed amount, with lnha|`esd, in payments totaling not less than
$100,000 per year.
70
(5) The exercise of the option shall not extend the expiration
date of the Lease Term to a date later than five years after the date
the borrowed amount, with interest, will be amortized under the
estimate provided under(a)(4) of this section.
(b) Lessee shall give City written notice of the exercise of an option to
extend the Lease Term under this section, with the documents required
under (a) of this section, not later than 180 days before the date of
expiration of the Lease Term, as previously extended.
(c) An extension of the Lease Term under this section shall become
effective on the date of the closing of the financing of the
improvements described in the documents Lessee submits to City
to exercise the option.
Item 2: The parties acknowledge that, as a result of Ground Lease
Amendment No. 3 and the corresponding replat, the Premises are described as:
Lots 1-A and 3, Block 7, Fourth of July Creek Subdivision, Seward
Marine Industrial Center, Seward Ship's Drydock Replat, according
to Plat 2002-22, Seward Recording District, Third Judicial District,
State of Alaska.
Item 3: Other Terms of Lease. All other terms of the Lease remain in effect
Nisid
and legally binding upon the parties except as expressly amended herein.
The effective date of Lease Amendment No. 4 shall be when signed by
both parties in accordance with Resolution 2010-0Qa of the City.
City: Lessee:
CITY OF SEWARD SEWARD SHIP'S DRYDOCK, INC.
Phillip Oates ames T. Pruitt
City Manager ;a,.:,m i,esident
AT/,EST. '}
dan Lewis.,,, 'MC
dty Clerk .�, ;,
7
71
11 lir
STATE OF ALASKA )
)ss.
THIRD JUDICIAL DISTRICT )
f,
The foregoing instrument was acknowledged before me this :.i _ day of
■,)(\i,, ,,:,(.1.,,I,..„_.--;12010 by Phillip Oates, City Manager of the City of Seward an Alaska
.,.-
corporation, on behalf of the corporation.,
,,,041111toi ,, V
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STATE6f9 . -.!,,,,' ■*
Ntiiiim )ss.
THIRD JUDICIAL DISTRICT )
,c
The foregoing instrument was acknowledged before me ji ' of
:/),CeeiriZidiC, 2:Eaa by James Pruitt, President of Seward Ship's Drydock, Inc., an
Alaska corporation, on behalf of the corporation.
1 -
tCifteltt,-,2,
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.-.. -,:,-,,, Notary in and for Alaska ,--ii
A-,--1•7 \''''..::'. My commission expires:
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AGREEMENT TO EXTEND GROUND LEASE
This Agreement is between the City of Seward, Alaska, an Alaska
municipal corporation ("City"), whose address is P,O. Box 167, Seward, Alaska
99664, and Seward Ship's Drydock, Inc., an Alaska corporation ("Lessee"),
whose address is P.O. Box 944, Seward, Alaska 99664, who are lessor and
lessee, respectively, under that certain Ground Lease dated April 25, 1995 of
certain real property located within the Seward Marine Industrial Center, Seward,
Alaska (the "Lease").
Lessee certifies that it has completed the improvements necessary to
extend the Lease Term in accordance with the Decision and Award dated
December 23, 2008. Lessee installed a new cathodic protection system for the
Ship lift Facility, and did not obtain financing for the improvement. Pursuant to the
Decision and Award, the parties agree that "this extension period will commence
July 1, 2009 and expire June 30, 2016."
This lease amendment is without prejudice to each party's position
concerning the manner in which the "cost of improvements" is determined for
purposes of future lease extensions
Dated this2biday of -Jii,croady 2010.
City: Lessee: **Rd
CITY OF SEWARD SEWARD SHIP'S DRYDOCK, INC.
Phillip O mes T. Pruitt
City Manager F4?es id ent
ATTEST: •
L
Cf;
4 an Lewis;-/ MC ao'N 4.:4?■Lt"
city Clerk -
CI;
1/51U0Lana6 V"`
STATE OF ALASKA
)ss.
THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this:)(Pday of
cji 4 VI/ , 2010 by Phillip Oates, City Manager of the City of Seward an Alaska
corpora 'on, on behalf of the corporation.
NIS
73
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411161, '....,,, N--." IA-, ‘.5>."----..
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L')1,.. c 1 , Notary in and for Alaska
":".;;,-Sr, '<•,`/). .-5;'' ,i),,i,',"-*
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I'M commission expires: -,/3— ii---, 2 )/ 77-)
4,44z*„E.,4006.„0
milintilx‘
STATE OF ALASKA )
)ss.
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this ,2/-P-day of
jUlaa-PlA‘ , 2010 by James Pruitt, President of Seward Ship's Drydock, Inc., an
Alaska cofporation, on behalf of the corporation.
/9--
,,,ollitiori ,..14 ..‘,..tdid,_.- ..■411r..0.■■•)1 ,lx.:/'‘/1'\-444 .'1Q--.'
tary in and for Alas a
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74
AGREEMENT TO EXTEND GROUND LEASE
This Agreement is between the City of Seward, Alaska, an Alaska municipal corporation
("City"), whose address is P.O. Box 167, Seward, Alaska 99664, and Seward Ship's Drydock,
Inc., an Alaska corporation ("Lessee"), whose address is P.O. Box 944 Seward, Alaska 99664,
who are lessor and lessee, respectively. under that certain Ground Lease dated April 25, 1995 of
certain real property located within the Seward Marine Industrial Center, Seward, Alaska (the
"Lease").
The City of Seward and the Lessee certify that certain improvements have been
completed that are necessary to extend the Lease Term in accordance with Ground Lease
Amendment No. 4 dated January 14, 2010. Lessee installed certain capital improvement projects
at the City Ship Lift Facility: Hoist Pawl Solenoid Upgrade, SMIC Cell and Dock Pile Coating,
Control System Upgrade, and Cathodic Protection System. in full consideration of the
aforementioned improvements by the Lessee, the City and Lessee agree that the subject lease
will be extended commencing July 1. 2016 and expiring June 30, 2040.
Dated this Il day o{`_..' :ti 2012
City: Lessee:
!ad
CITY OF SEWARD SEWARD SHIP'S DRYDOCK, INC.
----) 7_2
«..-. ,,icy'' �•/
„Ai. - —_ _____4,44.
amen Hunt Ja r-s T. Pruitt
City Manager Presiclent
q, ...: .KY f.or. ,,.>r.
ATTEST: y
J `hanna Kinney "� ,
• J ... a
,;»
City Clerk >'
'; l.; SkH ,-;° a.
State of Alaska 11,;-"r; , "_>.°' '(
)ss. ,r.
Third Judicial District )
The foregoing instrument was acknowledged before me this Jjt))day of 0t-,, 2012 by James Hunt,
City Manager of the ci;'t i a r�Jd an Alaska corporation,on,beKalf,of the cor oration.
,
w._
Notary in dr d for Ala-ka
w, t . , {�_ � :: My cornmission expires: (°�-,;),(,;._i..
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75
State of Alaska )
)ss.
Third Judicial District )
The foregoing instrument was acknowledged before me thisArr day of :AM' ,2012 by James T.
Pruitt, President of Seward Ship's Drydock, Inc.an Alaska corporation,on behalf of the corporation,
( "f t �f, jy n i'���fi ,�
.. (/t :__t"/i::�i. .. .. t.F: e 1
Notary in and for Alaska '�^
fit.. �,�• My commission expires: / /!'`w
7(1-..C" r
NOTARY s
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Phase I Environmental Site
Assessment
Project Solstice
Seward Ships Drydock
7 Mile Nash Road
Seward,Alaska
Prepared for:
Vigor Industrial, LLC April 2014
www.erm.com
[.72W
The world's leading sustainability consultancy ERM
77
Vigor Industrial,LLC
Phase I Environmental Site
Assessment
Project Solstice
Seward Ships Drydock
7-Mile Nash Road
Seward,Alaska
April 2014
Project Number: 0230020
;'L.-
Erik Ipsen,PE
Partner-in-Charge
214-6,f4“. CAtry%
Bob Carson
Project Geologist
Lisa Nicholson
Project Manager
ERM-West,Inc.
1001 SW 5th Avenue,Suite 1010
Portland, Oregon 97204
T: (503) 488-5282
F: (503) 488-5142
Slaw
78
TABLE OF CONTENTS ,,wad
LIST OF FIGURES III
EXECUTIVE SUMMARY 1
1.0 INTRODUCTION AND BACKGROUND 1
1.1 PURPOSE AND AUDITORS 1
1.2 SCOPE OF WORK 1
1.3 LIMITING AND SPECIAL CONDITIONS 2
1.3.1 Limiting Conditions during the Site Visit 2
1.3.2 Significant Assumptions 2
2.0 SITE SETTING 3
2.1 LOCATION 3
2.2 NEIGHBORING PROPERTIES 3
2.3 TOPOGRAPHY AND HYDROLOGY 4
2.4 GEOLOGY AND HYDROGEOLOGY 4
3.0 SITE AND OPERATIONS INFORMATION 6
3.1 GENERAL SITE DESCRIPTION 6
3.2 UTILITIES 6
3.3 PROCESSES AND MATERIAL USE 7
3.3.1 Current Operations 7
3.3.2 Discontinued Operations 7
3.4 CHEMICAL USE AND STORAGE 7
3.4.1 Underground Storage Tanks (USTs) 7
3.4.2 Aboveground Tanks (ASTs) 7
3.5 HAZARDOUS AND NON-HAZARDOUS WASTE MANAGEMENT 8
3.5.1 Hazardous Waste 8
3.5.2 Non-Hazardous Waste 8
3.6 WATER, WASTEWATER,AND STORM WATER 8
3.6.1 Water 8
3.6.2 Wastewater 9
3.6.3 Storm Water 10
3.7 AIR EMISSIONS 10
3.8 POLYCHLORINATED BIPHENYLS (PCBS) 10
3.9 VISUAL INDICATIONS OF ON-SITE IMPACTS 11
3.10 ASBESTOS-CONTAINING MATERIALS (ACMS) 11
Nied
i
79
•
%kr 4.0 ASSESSMENT OF PAST LAND USE AND OPERATIONS 12
4.1 GENERAL INFORMATION 12
4.2 HISTORICAL ENVIRONMENTAL REPORTS 12
4.3 EVALUATION OF HISTORICAL INFORMATION SOURCES 15
4.3.1 Subject Property 16
4.3.2 Adjacent Properties and Surrounding Area 16
5.0 DATABASE AND GOVERNMENT RECORDS REVIEW 18
5.1 GOVERNMENT RECORDS REVIEW/INTERVIEWS 18
5.2 ENVIRONMENTAL DATABASE SEARCH 18
5.2.1 Subject Property 19
5.2.2 Surrounding Properties 19
6.0 DATA GAPS 21
7.0 USER AND OWNER PROVIDED INFORMATION 22
7.1 USER AND OWNER/OPERATOR QUESTIONNAIRES 22
Z2 TITLE RECORDS 22
7.3 ENVIRONMENTAL LIENS OR ACTIVITY AND USE LIMITATIONS 22
7.4 SPECIALIZED KNOWLEDGE 23
7.5 COMMONLY KNOWN OR REASONABLY ASCERTAINABLE
INFORMATION 23
7.6 VALUATION REDUCTION FOR ENVIRONMENTAL ISSUES 23
7.7 OWNER, PROPERTY MANAGER,AND OCCUPANT INFORMATION23
7.8 REASON FOR PERFORMING PHASE I 23
7.9 NON-REGULATORY INTERVIEWS 24
8.0 CONCLUSIONS/RECOMMENDATIONS 25
9.0 QUALIFICATIONS OF ENVIRONMENTAL PROFESSIONALS CONDUCTING
THIS ASSESSMENT 27
10.0 LIMITATIONS 28
APPENDIX A — SITE PHOTOGRAPHS
APPENDIX B — AERIAL PHOTOGRAPHS, TOPOGRAPHIC MAPS, CITY
DIRECTORIES SEARCH RESULTS,AND SANBORN FIRE
INSURANCE MAPS
APPENDIX C — SITE-AND USER-PROVIDED INFORMATION
APPENDIX D — USER AND OWNER QUESTIONNAIRES
APPENDIX E — EDR DATABASE SEARCH RESULTS
APPENDIX F — PROFESSIONAL PROFILE
80
■•sd
LIST OF FIGURES
1 Site Location Map following text
2 Site Layout Map
3 Surrounding Area Map
LIST OF TABLES
1 Summary of Historical Records Reviewed page 15
2 Chronology of Subject Property Uses page 16
3 Chronology of Surrounding Area Uses page 16
4 Summary of Findings from EDR Report page 19
5 Data Gap Summary page 20
.Nuld
81
44■0. EXECUTIVE SUMMARY
ERM-West, Inc. (ERM) performed a Phase I Environmental Site
Assessment (ESA) of the Seward Ships Drydock (SSD) operations located
at 7-Mile Nash Road,Seward, Alaska (the "subject property" or "site").
The Phase I ESA was conducted in accordance with the scope and
limitations of American Society for Testing and Materials (ASTM)
Standard E 1527-05[Standard Practice for Environmental Site Assessments:
Phase I Environmental Site Assessment Process, and the standards for
conducting all appropriate inquiries set forth by the United States
Environmental Protection Agency at Title 40 of the Code of Federal
Regulations, Part 312. ERM performed this ESA at the request of Vigor
Industrial LLC usi a materiality threshold of$250,000 per
environmental issue identified. Noteworthy issues of<$250,000 will also
be identified.
The site visit was performed on 19 December 2013 by ERM assessors Ms.
Lisa Nicholson, C.P.G. and Ms. Kelsey Coolidge. ERM was accompanied
on the site visit by Jim Pruitt, the owner of SSD. SSD operates at the
Seward Marine Industrial Center (SMIC) and is under an operation
o��eeonentvvi�htbanvvn�� ��e ��itvnf5evvmrc}. SSI} o��erataso�man1I-
'
acre (479,160 square feet) area and leases a 7.84-acre parcel of land
identified as Lot 1 Block 7 of the SMIC.
Recognized Environmental Conditions
A Recognized Environmental Condition (REC), as defined in ASTM
Standard El527-05, io "the presence orlikely presence of any hazardous
substances or petroleum products on a property under conditions that
indicate an existing release, a past release, or a material threat of a release
of hazardous substances or petroleum products into structures on the
property or into the ground, ground water, or surface water of the
property, excludi de minimis conditions."
Based on the data obtained during the site visit, the environmental
database review, and interviews with persons familiar with the site and its
history, the following RECs were identified at the site:
• Vessel washwater and site storm water are discharged to the Transfer
Pit and French drain. The quality of discharges is evaluated visually
as part of the requirements of the facility stormwater permit. The
permit only requires SSD to visually inspect the water in the Transfer
`" �
r� Pit for evidence of an oily sheen. Washwater and storm water comes
ERM ES-1 souT1cE/0230020/^rmL20*
82
into contact with areas of metals and chemical use and storage
throughout the site, including fabrication, raw material storage,
painting activities,non-hazardous waste storage, and used grit
storage areas. Therefore, it is possible that organics and metals
(including copper, zinc, lead, and chromium) and possibly
tributyltin, from current or former SSD operations, may become
entrained in storm water and be discharged to the subsurface.
Organics and metals in surface water and/or sediment could pose a
risk to ecological marine receptors.
• Although wastewater is discharged to the unpaved ground surface
and to a French drain, groundwater conditions were not evaluated
by the United States Environmental Protection Agency (USEPA),
SSD, or Alaska Department of Environmental Conservation (ADEC)
as part of site investigations conducted between 2007 and 2010. The
investigations only addressed the condition of shallow soil and/or
intertidal sediment. In 2013, ADEC issued a"No Further Action"
letter for conditions associated with shallow soil and sediment
contamination identified at the site.
Material Compliance Issues
• ADEC and the City of Seward require SSD to comply with Best .,,d
Management Practices for their site activities. In 2012, the City
indicated that SSD is technically in default of the Lease as a result of
four unresolved Notices of Default issued by ADEC. The City
administration recommended allowing the Lease to continue, without
waiving any rights of the City,with the understanding and
expectation that environmental compliance matters will be dealt with
and resolved between SSD and DEC. Based on a 2008 ADEC fact
sheet, the facility was issued a Notice of Violation to SSD in February
2007 for failing to follow the dust control plan they committed to in
spring 2006. City of Seward records indicate the facility continued to
receive complaints about dust control issue and received another
NOV in April 2013. No information regarding the specific NOV
issues or resolution was provided by ADEC or SSD. SSD has also not
prepared BMPs for wastewater discharges, stormwater discharges,
registered the French drain as a UIC device, or prepared a site specific
Spill Prevention Control and Countermeasure (SPCC) Plan.
ERM ES-2 SOLSTICE/0230020/APRIL 2014
83
4\r" De Minimis or Other Potential Issues
While not RECs, ERM identified concerns that are summarized below and
are discussed in greater detail in the body of the report:
• The quality of the sediment in the boat basin has not been evaluated.
A recent 10 million dollar grant to the City of Seward, for in-water
and upland improvements to SMIC, includes funds for the dredging
of 5 to 10 feet of material from the boat basin. SSD indicated it has
not conducted any repair activities on or over water.
• SSD reportedly disposed of approximately 189 cubic yards of spent
sandblast grit on a private offsite property in 2004. As the result of
public complaints, ADEC investigated the disposal activities and
required SSD to excavate the material for disposal in a licensed
landfill by 2005.
*my
ERM ES-3 SOLSFICE/0230020/APRIL 2014
84
1.0 INTRODUCTION AND BACKGROUND °w°
1.1 PURPOSE AND AUDITORS
ERM-West, Inc. (ERM) performed a Phase I Environmental Site
Assessment(ESA) of the of the Seward Ships Drydock (SSD) operations
located at 7-Mile Nash Road,Seward Marine Industrial Complex Seward,
Alaska (the"subject property" or"site"). ERM performed the ESA at the
request of Vigor Industrial LLC (the "User") using a materiality threshold
of$250,000 per environmental issue identified. Noteworthy issues of
<$250,000 will also be identified.
The site visit was performed on 19 December 2013 by ERM assessors Ms.
Lisa Nicholson, C.P.G and Ms. Kelsey Coolidge. ERM was accompanied
on the site visit by Mr.Jim Pruitt, the owner of SSD, and the operator of
the subject property.
1.2 SCOPE OF WORK
This environmental assessment was conducted in conformance with
ERM's proposal dated 17 December 2013 and with the requirements of
American Society for Testing and Materials (ASTM) Standard E 1527-05.
Standard Practice for Environmental Site Assessments: Phase I Environmental
Site Assessment Process and the standards for conducting all appropriate
inquiries (AAI) set forth by the United States Environmental Protection
Agency (USEPA) at Title 40 of the Code of Federal Regulations (CFR) Part
312.
The assessment was conducted to evaluate and identify conditions
indicative of releases and threatened releases of hazardous substances and
petroleum products on, at, in, or to the subject property. ERM's Phase I
ESA sought to gather information regarding: (1) current and past property
users and occupancies; (2) current and past users of hazardous substances
and petroleum products; (3) waste management and disposal activities
that could have caused a release or threatened release of hazardous
substances; (4) current and past corrective actions and response activities
to address past and ongoing releases of hazardous substances at the
subject property; (5) engineering controls at the subject property; (6)
institutional controls at the subject property; and (7) properties adjoining
or located near the subject property that have environmental conditions
that could have resulted in conditions indicative of releases or threatened
releases of hazardous substances to the subject property.
ERM 1 SOLSTICE/0230020/APRIL 2014
85
Slew ERM's Phase I ESA included:
• An on-site inspection of the subject property to evaluate current
conditions and identify areas of potential concern;
• A review of property history through interviews and aerial
photographs, city directories, ownership records, and historical
mapping;
• Observation of adjacent properties and the local area to evaluate the
potential for adverse environmental impact to the subject property;
• Interviews/research of local city/county, tribal, state, and federal
records, including contracting of Environmental Data Resources, Inc.
(EDR) to identify sites of concern as required in the regulatory records
review section of the ASTM standards for a Phase I ESA, where
available; and
• Interviews with the prospective purchaser.
Photographs of the site were taken to document current conditions and
are included in Appendix A. Copies of aerial photographs, topographic
maps, City Directory Search results, and Sanborn Fire Insurance Maps are
presented in Appendix B. Property environmental records or permits,
Skov reasonably obtainable at the time of the site visit, were reviewed and are
included in Appendix C, as appropriate. Copies of the questionnaires
(submitted to the User and Owner/Operator) are presented in Appendix
D. The EDR Database Search results were obtained and are presented in
Appendix E.
1.3 LIMITING AND SPECIAL CONDITIONS
1.3.1 Limiting Conditions during the Site Visit
During the site visit, the ground was covered by approximately a foot of
snow. As a result, ERM was unable to inspect the ground conditions (e.g.,
staining) due to the snow coverage. In addition, it was not possible to
determine surface completions (i.e., pervious or impervious) at all
locations.
1.3.2 Significant Assumptions
No significant assumptions have been made.
1416.,
ERM 2 SOLSTICE/0230020/APRIL 2014
86
2.0 SITE SETTING '
21 LOCATION
The SSD operations are conducted on Block 7 of the Seward Marine
Industrial Center (SMIC) located at Mile 7 Nash Road, Seward, Alaska.
The total operations area includes an approximately 11-acre parcel on the
SMIC uplands. SSD leases lots 1A and 3 of Block 7. SSD has operations
outside these lease areas, including the transfer
The general location of the property and the physiographic features of the
surrounding area are shown on Figure 1, developed from the United
States Geological Survey 7.5-minute quadrangle for Seward, Alaska, dated
1995. Figure 2 provides a site layout, including leasehold boundaries.
2.2 NEIGHBORING PROPERTIES
The subject property leasehold is located in a marine industrial area across
Resurrection Bay from the Seward, Alaska townsite. The abutting
properties and nearby land use includes:
• North: City of Seward Washdown Pad (Block 7, Lot 4);
• East: The eastern portion of Block 7,Lot 4 is used for storing derelict
boats. The city moves the boats to this location when they have been
abandoned in the boat storage area. Block 6 is immediately east of
Block 7 and only Lot 1 is currently leased by Global Towers for
placement of a cell tower;
• South:The southern portion of Block 7, Lot 4 is part of the active
boatyard and two boats were parked there at the time of the site visit.
Block 8, south of Block 7 is un-leased, undeveloped land in the
alluvial fan of Fourth of July Creek;and
• West: A boat basin and dock with a 250-ton Marine SynchroLift for
pulling vessels out of the water.
Based on ERM's observations, the closest residences are located
approximately one mile north of the subject property on Nash Road. No
visual evidence of environmental concerns was observed on immediately
surrounding properties. However, as noted above, the ground surface was
covered with snow during the visit and could not be inspected.
ERM 3 SOLSTICE/0230020/APRIL 2014
87
2.3 TOPOGRAPHY AND HYDROLOGY
The subject property is located in Seward Alaska, which lies in the south-
central portion of Alaska on the Kenai Peninsula region. Seward is
located at the north end of Resurrection Bay. The subject property is part
of the SMIC, which was constructed on the northern portion of the Fourth
of July Creek alluvial fan with quarried and/or dredged material from
Resurrection Bay. The SMIC is located at the mouth of Fourth of July creek
across Resurrection Bay from the main Seward townsite.
The property is located at an elevation of approximately 15 feet above
mean sea level, and is generally flat around the buildings and parking
areas. The overall topographic trend of the surrounding area is to the
southwest towards Resurrection Bay. Mountains surrounding the site
reach elevations of 2,000 feet within one mile of the coast. The closest
surface water features to the subject property are Car lanna Creek,
immediately northwest of the subject property, and Fourth of July Creek
located south of the subject property. The region is a temperate rainforest
with approximately 68 inches of precipitation per year.
According to the EDR report (Appendix E), the subject property is not
‘low identified within the 100 or 500-year floodplains. The EDR report does
show the subject property is identified on the national wetlands inventory
map as containing potential wetland areas.
2.4 GEOLOGY AND HYDROGEOLOGY
The area surrounding Resurrection Bay was covered by glaciers during
the Pleistocene Epoch. Numerous glaciers are still present east of
Resurrection Bay and the Harding Icefield lies a few miles west of the
main Seward townsite.
Exposed bedrock is comprised of alternating units of greywacke and
phyllite which have experienced low-grade metamorphism. Local
surficial deposits are comprised of alluvial-fan and fan-delta deposits and
include drift, mudflows, and landslide deposits near the mouths of
smaller tributaries including Fourth of July Creek.
Geologic maps and site data indicate the subject property is underlain by
fill, fan-delta deposits, and slightly metamorphosed sedimentary bedrock.
The steep underwater face of the alluvial fan at Fourth of July Creek
reportedly suffered submarine landslides during the 1964 earthquake.
ERM 4 SOLSTICE/0230020/APRIL 2014
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Resurrection Bay is a deep fjord about 25 miles long and 3 to 5 miles wide,
with a maximum depth of 978 feet. According to the SMIC website, the
area around the SMIC dock is dredged to a depth of-21 to-25 feet mean
lower low water. The City of Seward is proposing to deepen portions of
the boat basin to a depth of-30 feet along with other improvements.
Shallow groundwater flow would be expected to come from the
mountains to the northeast and move southwest towards Resurrection
Bay. It is important to note that groundwater flow direction can be
influenced locally and regionally by the presence of tidal action, surface
topography,recharge and discharge areas, horizontal and vertical
inconsistencies in the types and location of subsurface soils, and proximity
to water pumping wells. Confirmation of specific geologic and
hydrogeologic factors affecting groundwater flow beneath the subject
property is beyond the scope of this ESA.
Based on information from the City of Seward, a water supply well serves
the SMIC located approximately one mile north of the subject property.
ERM 5 SOLSTICE/0230020/APRIL 2014
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3.0 SITE AND OPERATIONS INFORMATION
3.1 GENERAL SITE DESCRIPTION
According to the Kenai Peninsula Borough Tax Assessor records, the
subject property contains 7.34 acres of land and consists of Parcel
Number: 14534046. The property is currently owned by the City of
Seward.
A facility layout diagram is included as Figure 2. The property includes:
• Two uncovered work bays and one covered work bay (Lot 1A),
connected by a rail system to the 250-ton SyncroLift;
• Uplands repair berth (Lot 3) with a rail and key system that allows
ships to be moved from the Travelift to the shipbuilding zone;
• The Fabrication Building that is an approximately eight-story high,
three-sided building for vessel construction and repair, that also
contains an office space;
• Metal storage/lay-down areas;
• Gravel parking lot;
• Oil/water separator with containment;
• Hazardous materials storage building;
• A non-hazardous waste storage area (uncovered); and
• Office trailers
The site is fenced but access is not restricted.
3.2 UTILITIES
SSD is provided with the following utilities:
• Water from the City of Seward from a well and water tank located
approximately one mile north of the subject property;
• Sewer from City of Seward (a sewage lagoon is located approximately
one-half mile northeast of the subject property); and
• Electricity from the City of Seward.
I■•■•
There is no natural gas utility in Seward.
ERM 6 SOLSTICE/0230020/APRIL 2014
90
3.3 PROCESSES AND MATERIAL USE 'lord
3.3.1 Current Operations
At the time of ERM's site visit,the subject property was owned by the City
of Seward and was leased by SSD. Current site operations include ship
repair and fabrication. A facility layout diagram is included in Figure 2.
3.3.2 Discontinued Operations
Based on information obtained from Mr. Pruitt and other information
sources,the Seward Ship's, originally Seward Ship's Chandlery was
operated from the Leirer Industrial Park in the main Seward townsite.
Seward Ship's Chandlery still uses this site. In 1979,Seward Ship's leased
an additional site at Lowell Point on the west side of Resurrection Bay
where they began drydocking and servicing vessels. In 1985, after
completion of the SMIC, the company started operations as Seward Ship's
Drydock in its current location. Prior to the completion of the SMIC and
the subject properties operation as a drydocking facility, the area was part
of Resurrection Bay.
Ned
3.4 CHEMICAL USE AND STORAGE
A list the types and volumes of chemicals stored and used at the site was
requested,but was not provided by SSD. Based on site observations it
appears that the primary items at the site include sandblast grit, paint,
solvents, and oil products.
3.4.1 Underground Storage Tanks (USTs)
No USTs are present on the parcel.
3.4.2 Aboveground Tanks (ASTs)
ASTs that are currently in use at SSD include:
• A 2,000-gallon, horizontal, double-walled, diesel tank;
• A 3,000-gallon,horizontal, double-walled gasoline tank;
• Two 300-gallon, horizontal tanks located in the vehicle maintenance
shop and in the fabrication shop that store used oil;
• An approximately 300-gallon, diesel storage tank for heating the ,,
breakroom;
ERM 7 SOLSTICE/0230020/APRIL 2014
91
1%or • A 200-gallon diesel day tank behind a storage shed adjacent to the
southern uncovered work bay; and
• Numerous empty storage tanks scattered across the site.
3.5 HAZARDOUS AND NON-HAZARDOUS WASTE MANAGEMENT
3.5.1 Hazardous Waste
SSD is not listed as a hazardous waste generator in the EDR report or in
the USEPA Envirofacts website. However, the facility does generate paint
waste. Details of waste paint management activities were requested from
SSD but were not provided at the time of this report.
Used oil is not considered a dangerous waste if it is recycled. According
to the current owner, used oil from the facility is recycled in two oil
burners that heat the two shop buildings.
Universal wastes are generated at the subject property and include
fluorescent light tubes and batteries.
‘1■•• 3.5.2 Non-Hazardous Waste
Non-hazardous solid waste sources include spent blast grit, oily debris,
and garbage generated in the office building. Blast grit is the largest
source of non-hazardous solid waste. The annual volume of blast grit
used in 2007 was approximately 100 to 1,000 tons.
Oily waste is burned in a Smart Ash burner. The majority of non-
hazardous waste is disposed of in the Kenai Peninsula Borough landfill.
The landfill requires that SSD characterize wastes for benzene, toluene,
ethylbenzene, and xylenes (BTEX), gasoline-range organics (GRO), diesel-
range organics (DRO),residual-range organics (RRO), total halogenated
volatile organic compounds (HVOCs), and toxicity characteristic leaching
procedure (TCLP) for lead, arsenic, and chromium.
3.6 WATER, WASTEWATER,AND STORM WAFER
3.6.1 Water
The facility obtains water for sanitary kitchen use from the City of Seward.
The SMIC has a water supply well and water tank located north of the
EMI 8 SOLSTICE/0230020/APRIL 2014
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Spring Creek Correctional Center (northeast of the SMIC). The well is up-
gradient of the subject property.
3.6.2 Wastewater
Sanitary wastewater is discharged to the City of Seward municipal
wastewater treatment system.
Mixed wastewater (from vessel washing) and stormwater from SSD is
currently discharged to the Transfer Pit and an associated French drain.
Regulators, including the USEPA,have identified the French drain as a
potential Class 5 Underground Injection Control (UIC) system. However,
the facility has not yet registered the drain as a UIC device. Stormwater is
discussed below in Section 3.6.3.
The management of other wastewater streams from SSD, under both
historical and current operating conditions, is discussed below.
3.6.2.1 Washdown Water from Work Bays
The current USEPA-issued NPDES permit authorizes the discharge of
washdown water without treatment, but requires quarterly monitoring for .,,d
sheen in water from four sediment traps located in the Transfer pit.
3.6.2.2 Ballast Water
The NPDES permit does not authorize the discharge of ballast water. SSD
contracts Emerald Alaska, Inc. to manage the ballast water from client
vessels.
3.6.2.3 Floodwater
No flood water comes into contact with the SSD's working surfaces. Work
is only performed in the three work bays located inland from the
SynchroLift dock.
3.6.2.4 Bilge Water
The NPDES permit does not authorize the discharge of ballast water. The
client contracts Emerald Alaska, Inc. to manage bilge water from client
vessels.
Nod
ERM 9 SOLSTICE/0230020/APRIL 2014
93
%tar 3.6.3 Storm Water
Stormwater from SSD is currently permitted under the USEPA-issued
National Pollutant Discharge Elimination System (NPDES) permit number
AKRO5CB23, issued April 21, 2009. The ADEC has primacy over the
issuance of NPDES permits (now called Alaska Pollutant Discharge
Elimination System [APDES] permits) in Alaska.
The average annual precipitation in Seward is approximately 68 inches.
Precipitation that falls on the upland subject property is captured by the
Transfer Pit,runs off-site by sheet flow, or infiltrates into the ground
surface. The Transfer Pit has four sediment traps that collect the water.
The outlets of the sediment traps lead to a French drain system. There are
no storm water outfalls from the SSD lease area to Resurrection Bay.
Water flowing over the work bays is not treated.
SSD received a notice of violation (NOV) regarding their NPDES permit
on June 28, 2013 based on an April 10, 2013 inspection. ERM does not have
a copy of the inspection report or the NOV,but it reportedly requires SSD
to file monitoring reports on a timely basis and use best management
‘1111" practices. Until the issues in the NOV are resolved, SSD is in technical
violation of its lease agreement with the City of Seward.
3.7 AIR EMISSIONS
ERM did not observe reportable air emission sources on the subject
property. However, between December 2004 and February 2007 the ADEC
received more than 20 complaints regarding fugitive dust. The ADEC file
for the site indicates that two Air Quality violations have been issued to
SSD; one on May 13,2005 and one on February 23, 2007. ADEC required
SSD to develop and implement BMPs for fugitive emissions. SSD
subsequently developed a plan to control fugitive emissions; however, the
plan may be inadequate as fugitive emissions have continued to be the
subject of citizen complaints.
3.8 POLYCHLORINATED BIPHENYLS (PCBS)
PCB results from the 2007 USEPA Site Inspection indicated that Aroclor-
1254 was present above background levels in the covered bay and in the
k■•sy southern uncovered bay. One sample collected from the stockpile
ERM 10 SOLSTICE/0230020/APRIL 2014
94
exceeded ADEC cleanup level for PCBs of 1 milligram per kilogram
(mg/kg).
3.9 VISUAL INDICATIONS OF ON-SITE IMPACTS
ERM did not observe indications of on-site dumping, land disposal, or
contamination during the site inspection. Other than issues with spent
sandblast grit described previously, a review of available records did not
identify historical waste disposal on site.
Due to snow and ice cover, there were no observations regarding the
absence or presence of soil staining. No oil stains were observed on the
snow.
3.10 ASBESTOS-CONTAINING MATERIALS (ACMS)
Asbestos was banned in most friable building materials (spray-applied
surfacing materials and thermal system insulation) in 1978, but the
Occupational Safety and Health Administration deems spray-applied
surfacing materials, thermal system insulation materials, and vinyl
flooring materials as "presumed asbestos-containing materials (PACMs)"
if they are present in pre-1981 buildings (29 CFR Parts 1910.1001 and
1926.1101).
Historical records indicate that the buildings were constructed on or after
1988. As a result, PACMs are not likely to have been used in building
construction.
According to Mr. Pruitt, small amounts of asbestos waste are generated
from repairs performed on older vessels. SSD contracts an environmental
consulting firm to abate, remove, and/or dispose of the asbestos material.
ERM 11 SOLSTICE/0230020/APRIL 2014
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4.0 ASSESSMENT OF PAST LAND USE AND OPERATIONS
4.1 GENERAL INFORMATION
Based on interviews with site personnel and a review of historical
photographs and records, the subject property is operated by SSD under
an agreement with the owner, the City of Seward. Initial development
activities included dredging and filling to raise the site to the current
elevation. SSD moved to the facility in 1988. The SSD facility has
undergone several improvements since initial construction.
4.2 HISTORICAL ENVIRONMENTAL REPORTS
ERM was provided with several historical reports for the subject property.
A summary of the reports is presented below.
1) Seward Ship's Drydock Site Inspection, Seward,Alaska. Prepared by:
Ecology and Environment, Inc. (E&E) 2007. Prepared for: the USEPA.
E&E performed a site inspection for the USEPA in 2007. E&E collected
nineteen surface soil samples from suspected sources across the subject
property. The results indicated that:
• Benzo(a)pyrene and DRO exceeded ADEC soil cleanup levels in the
Transfer Pit and the Covered Bay;
• Only DRO exceeded soil cleanup levels at the Solvent Storage Area
and Maintenance Building; and
• Benzo(a)pyrene, Aroclor-1254, and DRO exceeded cleanup levels in
the spent sandblast grit stockpile.
The report compared the sample results to a background soil sample
collected approximately upgradient of the subject property, along
Fourth of July Creek.
E&E also collected three sediment samples: two from the banks of
Resurrection Bay and one from a north-south oriented ditch that runs
overland east of the site. The results for the ditch sample indicated that
arsenic, chromium, and DRO were elevated with respect to a
background sediment sample collected approximately three miles
away. The results from the two Resurrection Bay samples were
NI•mov comparable with respect to the background sample.
ERM 12 SOLSTICE/0230020/APRIL 2014
96
The Site Inspection Report concluded that hazardous substances were ` '
present at significant concentrations throughout the subject property,
but that no hazardous substances were detected in the samples from
Resurrection Bay at elevated concentrations with respect to background
concentrations.
Based on the findings of the 2007 investigation EPA determined that no
further action was required under the Federal Superfund program was
warranted at the site unless new information warranting further
consideration was discovered.
On 16 January 2014,SSD received a letter from EPA stating that the
findings of a 10 April 2013 Stormwater Inspection Report by the ADEC
indicated that the Transfer Pit drainage and French drain system were
conditions not previously investigated and considered in the 2007 site
inspection. EPA determined that a re-assessment of the site may be
warranted to determine any potential impacts the subsurface and
groundwater.
2) Field Summary Report For Spent Sandblast Media Characterization &
Disposal Program, Seward Ship's Drydock, Incorporated, Seward, Alaska.
Prepared by: TELLUS Ltd., February 2009. Prepared for: SSD. Nod
In September 2008,TELLUS,Ltd. screened and sampled the SSD spent
sandblasting grit stockpile for BTEX,GRO,DRO, RRO, HVOCs, semi-
volatile organic compounds,Synthetic Precipitation Leaching
Procedure for the previous methods, and TCLP for inorganic
compounds. TELLUS, Ltd. provided the results to the Kenai Peninsula
Borough for approval of disposal at their Central Peninsula Landfill
(CPL) facility. After receiving approval, Tellus hauled the grit to the
CPL for disposal.
3) Field Summary Report For Solvent Storage Area Characterization Activities,
Seward Ship's Drydock, Incorporated, Seward,Alaska. Prepared by:
TELLUS Ltd.,March 2009. Prepared for: SSD.
In September 2008,TELLUS, Ltd. screened and sampled a segregated
soil stockpile produced when contaminated soil was removed from the
Solvent Storage Area on the northeastern portion of the property.
TELLUS collected two samples from the previously excavated area and
two samples from the stockpile. The samples were analyzed for BTEX,
GRO, DRO, RRO,SVOCs,target analyte metals, and tributyltin (TBT).
The excavation area samples were found to contain low levels of several
compounds; the results were below the most stringent current ADEC
ERM 13 SOLSTICE/0230020/APRIL 2014
97
soil cleanup levels. The results of the stockpile samples were found to
have elevated levels of several analytes; the results exceeded ADEC
cleanup levels for DRO, chromium, and tributyltin. The report indicated
that disposal options were being considered.
4) Interim Field Summary Report for Cleanup, Investigation & Site
Characterization Program, Seward Ship's Drydock, Incorporated, Seward,
Alaska. Prepared by:TELLUS Ltd.,September 2009. Prepared for: SSD.
TELLUS completed a sampling program in July and August 2009 that
included 58 soil borings from across the lease area. Nine of the borings
were advanced in the transfer pit. TELLUS collected one sample from
each boring from a depth of 1.5 to 2.5 feet. The samples were analyzed
for GRO, DRO, RRO, and BTEX only. The report indicated that
compounds were either not detected or present at low levels in all of the
samples. All results were below the ADEC soil cleanup levels. The
report concluded that the subject property did not contain significant
petroleum hydrocarbon impacts.
5)ADEC Decision Document: Seward Ship's Drydock Cleanup Complete
Determination. Prepared by: ADEC, March 2013. Letter sent to SSD.
Sew
The ADEC determined that soil cleanup of the site was complete, based
on the following points:
• The spent sandblast grit stockpile and the Solvent Storage Area soil
were removed and transported for disposal to the Kenai Peninsula
Borough landfill;
• No petroleum hydrocarbons were detected in 2009 confirmation
samples from the subject property;
• ADEC calculated average contaminant concentrations from the 2007
E&E report and found that benzo(a)pyrene, arsenic, chromium, and
copper were the only contaminants of concern to exceed ADEC soil
cleanup levels;
• Arsenic and chromium occur naturally in Alaska soils;
• Copper exceeds only the migration to groundwater cleanup level and
the subject property and surrounding area are served by water from
the City of Seward public drinking water system; and
• Benzo(a)pyrene is produced by incomplete combustion of organic
material and exhaust from internal combustion engines is the most
4111. likely source of this compound. The ADEC feels that the
benzo(a)pyrene likely collects on the spent sandblast media during
ERM 14 SOLSTICE/0230020/APRIL 2014
98
Ng Id
sandblasting operations and is periodically removed along with the
spent media.
The letter states that the determination does not preclude the ADEC
from requiring additional assessment if future information suggests
that the subject property may pose an unacceptable risk to human
health or the environment.
4.3 EVALUATION OF HISTORICAL INFORMATION SOURCES
To determine past uses of the subject property and surrounding
properties, ERM reviewed historical sources of information as outlined in
Table 1 below. Copies of historical photographs, topographic maps, and
aerial photographs are presented in Appendix B.
Table 1 Summary of Historical Records Reviewed
Name/Years Reviewed
Source of Information
Subject Property Adjacent Properties
Interview(s)with current Mr.Jim Pruitt Mr.Jim Pruitt
occupant and/or owner
Interview(s)with past Ms.Donna Glenz(Seward Ms.Donna Glenz,Seward
owners/occupants,(if City Planner)and Mr.Mack City Planner
appropriate) Funk(Harbormaster),City of
Seward
Interview(s)with Not readily available Ms.Donna Glenz,Seward
owner/occupants of City Planner
neighboring and nearby
properties(in cases of
abandoned subject
property)
United States Geological 1983 and 1997 1983 and 1997
Survey Topographic Maps
City Directories Not readily available Not readily available
Sanborn Maps Unmapped property Unmapped properties
Historical Photographs 1919 and 1921 1919 and 1921
Aerial Photographs 1950,1978,and 1985 1950,1978,and 1985
ERM 15 SOLSTICE/0230020/APRIL 2014
99
50-year Chain-of-Title Not provided Not requested
4.3.1 Subject Property
A chronological history of the subject property based on available
historical records is provided in Table 2.
Table 2 Chronology of Subject Property Uses
Date Description
1980 to 1985 The SMIC was developed by filling the Fourth of July Creek delta
with quarried and/or dredged material from Resurrection Bay.
1988 SSD moved its facilities to the SMIC,leasing Block 7,Lots IA and 3
1988 to the The subject property(Block 7,Lot 1A)is currently operated by SSD
present under an agreement with the owner,the City of Seward. The facility
has undergone frequent improvements since initial construction.
11111.. 4.3.2 Adjacent Properties and Surrounding Area
The portion of Block 7, Lot 4 north of the subject property is currently the
city washdown pad. The pad was developed in October 2013. Before that
time, the area was used as a driveway for the boat lift.
The portion of Block 7, Lot 4 east of the subject property is currently used
by the City of Seward for storing derelict boats. Block 6 is immediately
east Block 7. The undivided portion of Block 6 is not presently being
leased but was used as a motorcycle race track between 2006 and 2011.
Block 6, Lot 1 is being leased by Global Tower Partners who constructed a
cell tower in 2011.
The portion of Block 7, Lot 4 south of the subject property is part of the
City's active boatyard. Two boats are currently parked in that area. Block
8 is southwest of Block 7. Lot 1 is leased by the U.S. Coast Guard and is
used as a radio facility. The remainder of Block 8 is undeveloped and un-
leased.
Table 3 Chronology of Surrounding Area Uses
Date Description
ERM 16 SOLSTICE/0230020/APRIL 2014
100
Date Description
1950 The area around Fourth of July Creek is undeveloped.
1978 The area appears to still be undeveloped.
1985 Nash Road has been added. The SMIC has been filled in and the
SynchroLift dock is in place. The parcels do not appear to have been
leased yet.
4.00#
ERM 17 SOLSTICE/0230020/APRIL 2014
101
14 kr 5.0 DATABASE AND GOVERNMENT RECORDS REVIEW
5.1 GOVERNMENT RECORDS REVIEW/INTERVIEWS
ERM reviewed available information from the USEPA Envirofacts and
ECHO internet databases,the City of Seward website, the ADEC website,
the Borough Assessor, and the Alaska Geographic Information System
Internet sites. Information obtained from these sources is summarized in
the appropriate sections of this report.
5.2 ENVIRONMENTAL DATABASE SEARCH
ERM contracted EDR to conduct a database search for agency records.
The EDR Database Search results, presented in Appendix E, define and
summarize the ASTM databases reviewed in the EDR report and note if
any sites (including the subject property) were identified in the specified
radius. The locations of the sites identified in the EDR report were
evaluated to determine which sites were within the ASTM-specified
search distance from the subject property boundary. Only those sites
within the ASTM-specified distances are discussed below.
It should be noted that the computerized geocoding technology used in
the database search is based on available census data and is only accurate
to±300 feet. The EDR report provides a list of unmapped sites for which
inadequate location information was provided. ERM has reviewed the list
of"unmapped" sites to determine if these sites are within the study
radius. If the "unmapped" sites appeared likely to be within the search
radius for a specific database, they are discussed in the sections that
follow.
Sites identified within the study radii were evaluated to determine if they
are likely to have adversely impacted the subject property. The criteria
used to evaluate the potential for adverse impact to the subject property
include:
• Distance from the subject property;
• Expected depth and direction of groundwater and surface water flow;
• Expected storm water flow direction; and
• The presence/absence of documented contaminant releases at the
identified sites that have not been remedied to the satisfaction of
regulators.
ERM 18 SOLSTICE/0230020/APRIL 2014
102
The identification of a site as potentially upgradient or downgradient is
based on the expected direction of groundwater flow to the west-
southwest (towards Resurrection Bay). However, given the relatively flat
topological conditions at the site and tidal fluctuations, groundwater flow
direction could be variable.
The EDR search identified the following properties in the EDR Database
Search. The subject property and properties with the potential to
adversely impact the subject property are discussed below.
5.2.1 Subject Property
The subject property address, Mile 7 Nash Road, was listed in the CERC-
NFRAP and ERNS databases searched by EDR.
The CERC-NFRAP listing is for hazardous waste sites that have been
removed from the inventory of CERCLIS (Comprehensive Environmental
Response, Compensation, and Liability Information System) and have
been designated "No Further Remedial Action Planned." The USEPA has
determined that the subject property does not qualify for the National
Priorities List based on existing information as of November 2007.
The subject property is listed twice the EDR report in the Emergency
Response Notification System (ERNS) as discussed below:
• On August 19, 2005 during the hauling of the 117-foot"Western
Mariner" fishing vessel, 2 quarts of used oil was discharged into
Resurrection Bay. Absorbent boom was applied to clean up the spill.
The responsible company was listed as Western Mariner LLC.
• On August 8,2005 an employee of SSD spilled paint into Resurrection
Bay. The volume of the spill was not reported and no cleanup was
reported. Mr. Pruitt has stated that work is only performed in the
upland work bays. Mr. Pruitt has not yet responded to questions
regarding the spill.
Note that both spills occurred on the dock,which is not on the subject
property lease.
5.2.2 Surrounding Properties
Surrounding sites identified in EDR's review of available databases are
summarized in Table 4.
ERM 19 SOLSTICE!0230020/APRIL 2014
103
Table 4 Summary of Findings from EDR Report
Radius
Database Searched Sites
(miles) Found
ERNS 0.25 1
A hydraulic line burst on a crane operated by Polar Seafood
(SMIC Lots 2 and 2A,Block 9) releasing hydraulic oil to the dock
and Resurrection Bay
The number and type of sites identified in Table 5 are consistent with the
history and nature of the surrounding area. When evaluating the
potential adverse impacts of off-site properties, ERM considered their
position relative to the reported groundwater flow direction. The Polar
Seafood site is cross-gradient of the subject property with respect to
groundwater flow direction and assumed to not have a potential adverse
impact on the subject property.
20 SOLSTICE/0230020/APRIL 2014
ERM
104
6.0 Data Gaps
Table 5 below summarizes the data gaps identified during the site
assessment. The significance of the data gaps with respect to the
conclusions of this assessment is indicated.
Table 5 Data Gap Summary
Data Gap Sources Consulted to Address Significancel
Data Gap
Interviews with former ERM reviewed historical maps Low
owners/operators(prior to and photographs,contacted
current owners/operators)on local and state officials and
the surrounding property. regulatory agencies,and
reviewed previous reports to
obtain information about the
surrounding properties.
An Environmental Lien Search Title information was obtained Low
was not conducted for the by the User and was provided
subject property. to ERM for review. No liens
were identified in the title
report.
1 Significance of data gaps to identify conditions indicative of releases or threatened
releases to the subject property is rated from low to high. Low significance indicates
that additional information to fill the data gaps is likely to have no impact on the
conclusions reached in this report.Medium ratings indicate that additional
information may prove valuable,but may not significantly alter the conclusions of this
report. High significance indicates that it is the consultant's opinion that additional
investigation(either from reports or field sampling)is required to address the data
gap.
41100
ERM 21 SOLSTICE/0230020/APRIL 2014
105
7.0 USER AND OWNER PROVIDED INFORMATION
7.1 USER AND OWNER/OPERATOR QUESTIONNAIRES
ERM contacted the client("User") and owner/operator to determine the
status of potential environmental concerns at the subject property. The
following information about the subject property was requested:
• An evaluation of the presence of Environmental Cleanup Liens for the
subject property;
• Activity and Use Limitations (AULs) such as engineering controls (e.g.,
slurry walls, caps) and land use restrictions or institutional controls
(e.g., deed restrictions,covenants) that may be in place for the subject
property;
• Specialized Knowledge that includes personal knowledge or experience
related to the subject property or nearby properties based on
professional experience or knowledge of the subject property;
• Fair Market Value to evaluate whether a purchase price is significantly
below fair market value;
• Obvious Indicators that involve past or present spills, stains, releases,
cleanups on or near the subject property; and
• Common Knowledge about specific chemicals, possible contamination,
or past use of the subject property and surrounding area.
The User and Owner/Operator Questionnaires for Phase One
Additional Inquiries (User and Owner/Operator Questionnaire) were
not completed for the subject property. Copies of the blank
questionnaires are included in Appendix D.
7.2 TITLE RECORDS
Title record information and/or a 50-year Chain of Title was not provided
by the User or Owner/Operator for review by ERM.
7.3 ENVIRONMENTAL LIENS OR ACTIVITY AND USE LIMITATIONS
ERM did not retain EDR to provide an environmental lien and AULs
'41••■•• search for the subject property. Additionally,no information provided in
ERM 22 SOLSTICE/0230020/APRIL 2014
106
the Owner/Operator questionnaire regarding liens or AULs associated
with the property.
7.4 SPECIALIZED KNOWLEDGE
The owner/operator and User had specialized knowledge regarding
former and current activities associated with the subject property.
Specialized knowledge was provided to ERM after the site visit and is
incorporated into this report.
7.5 COMMONLY KNOWN OR REASONABLY ASCERTAINABLE
INFORMATION
The operator indicated the site has been used by SSD as a ship repair yard
since 1988. Additional information provided by the operator indicated the
subject property is owned by the City of Seward.
7.6 VALUATION REDUCTION FOR ENVIRONMENTAL ISSUES
*Ned
The User did not identify any reasons for a valuation reduction associated
with potential environmental issues.
7.7 OWNER, PROPERTY MANAGER,AND OCCUPANT INFORMATION
Information pertaining to the subject property was obtained from the
owner/operator.
Entity Name
Subject property owner City of Seward
Subject property operator SSD
Current subject property SSD
occupant(s)
7.8 REASON FOR PERFORMING PHASE I
The Phase I ESA was performed to provide assistance to the User in
association with a proposed transaction involving the operator. 'NS
ERM 23 SOLSTICE/0230020/APRIL 2014
107
7.9 NON-REGULATORY INTERVIEWS
Information obtained from the current site operator is discussed in the
applicable sections throughout this report.
\01■9
ERM 24 SOLSTICE/O230020/APRIL 2014
108
8.0 CONCLUSIONS/RECOMMENDATIONS 'N.4•01
EM conducted a Phase I ESA of the subject property. ERM's conclusions
and opinions are based on a scope of work that followed the requirements
set forth in ASTM Standard E 1527-05 and 40 CFR 312. A summary of
ERM's conclusions and opinions is presented below. Based on the data
obtained during the site visit, the environmental database review, and
interviews with persons familiar with the site and its history, the
following RECs were identified at the site:
• Vessel washwater and site storm water are discharged to the Transfer
Pit and French drain. The quality of discharges is evaluated visually
as part of the requirements of the facility stormwater permit. The
permit only requires SSD to visually inspect the water in the Transfer
Pit for evidence of an oily sheen. Washwater and storm water comes
into contact with areas of metals and chemical use and storage
throughout the site, including fabrication,raw material storage,
painting activities, non-hazardous waste storage, and used grit
storage areas. Therefore, it is possible that organics and metals
(including copper, zinc, lead, and chromium) and possibly tributyltin,
from current or former SSD operations, may become entrained in
*NS
storm water and be discharged to the subsurface. Organics and metals
in surface water and/or sediment could pose a risk to ecological
marine receptors.
• Although wastewater is discharged to the unpaved ground surface
and to a French drain, groundwater conditions were not evaluated by
the USEPA, SSD, or Alaska Department of Environmental
Conservation (ADEC) as part of site investigations conducted
between 2007 and 2010. The investigations only addressed the
condition of shallow soil and/or intertidal sediment. In 2013, ADEC
issued a "No Further Action" letter for conditions associated with
shallow soil and sediment contamination identified at the site.
Material Compliance Issues
• ADEC and the City of Seward require SSD to comply with Best
Management Practices for their site activities. In 2012, the City
indicated that SSD is technically in default of the Lease as a result of
four unresolved Notices of Default issued by ADEC. The City
administration recommended allowing the Lease to continue,
without waiving any rights of the City, with the understanding and
expectation that environmental compliance matters will be dealt with
and resolved between SSD and DEC. Based on a 2008 ADEC fact *Id
ERM 25 SOLSTICE/0230020/APRIL 2014
109
*taw sheet, the facility was issued a Notice of Violation to SSD in February
2007 for failing to follow the dust control plan they committed to in
spring 2006. City of Seward records indicate the facility continued to
receive complaints about dust control issue and received another
NOV in April 2013. No information regarding the specific NOV
issues or resolution was provided by ADEC or SSD. SSD has also not
prepared BMPs for wastewater discharges, stormwater discharges,
registered the French drain as a UIC device, or prepared a site
specific Spill Prevention Control and Countermeasure (SPCC) Plan.
De Minimis or Other Potential Issues
While not RECs, ERM identified concerns that are summarized below and
are discussed in greater detail in the body of the report:
• The quality of the sediment in the boat basin has not been evaluated.
A recent$10 million grant to the City of Seward, for in-water and
upland improvements to SMIC, includes funds for the dredging of 5
to 10 feet of material from the boat basin. SSD indicated it has not
conducted any repair activities on or over water.
• SSD reportedly disposed of approximately 189 cubic yards of spent
Sap, sandblast grit on a private off-site property in 2004. As the result of
public complaints, ADEC investigated the disposal activities and
required SSD to excavate the material for disposal in a licensed
landfill by 2005.
N■ir
ERM 26 SOLSTICE/0230020/ARM-2014
110
9.0 QUALIFICATIONS OF ENVIRONMENTAL PROFESSIONALS
CONDUCTING THIS ASSESSMENT
Ms. Lisa Nicholson of ERM's Anchorage, Alaska, office and Mr. Bob
Carson of ERM's Portland, Oregon, office conducted this assessment. Mr.
Erik Ipsen, of ERM's Portland, Oregon, office, reviewed the contents of
this report. The professional qualifications for Ms. Nicholson, Mr. Carson,
and Mr. Ipsen are included in Appendix F.
The signatures for Ms. Nicholson, Mr. Carson, and Mr. Ipsen are affixed
on the cover of this report.
We declare that, to the best of our professional knowledge and belief,we
meet the definition of Environmental Professional as defined in 40 CFR
312.10.
We have the specific qualifications based on education, training, and
experience to assess a property of the nature,history, and setting of the
subject property. We have developed and performed the AAI in
conformance with the standards and practices set forth in 40 CFR 312.
*410°
ERM 27 SOLSTICE/0230020/APR1L 2014
111
411ar 10.0 LIMITATIONS
The innocent landowner, contiguous owner, and prospective purchaser
defenses to liability under the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) requires that a
person acquiring a property conduct an AAI with respect to the subject
property. ERM has conducted this ESA in accordance with the
standards for conducting an AAI set forth at 40 CFR 312. Those
standards require the application of scientific principles and
professional judgment to certain facts with resultant subjective
interpretations and exercise of discretion. Professional judgments
expressed herein are based on the facts currently available within the
limits of the existing data, and data gaps identified herein, scope of
work, budget, and schedule. Those standards also require that the
client undertake certain additional inquiries.
In addition, the liability defenses under CERCLA require, among
several other things, that the client after the acquisition stop any
continuing releases, prevent any future threatened releases and prevent
or limit human, environmental or natural resource exposure to any
%kr hazardous substance released at the subject property. Therefore, ERM
makes no warranties, express or implied, including, without limitation,
warranties as to merchantability or fitness for a particular purpose,
including any warranty that this Phase I ESA will in fact qualify client
for the innocent landowner, contiguous property owner or prospective
purchaser defense to liability under CERCLA. ERM's assessment is
limited strictly to identifying RECs associated with the subject property.
Results of this assessment are based upon the visual site inspection of
readily accessible areas of the subject property conducted by ERM
personnel, information from interviews with knowledgeable persons
regarding the site, information reviewed regarding historical uses,
information provided by contacted regulatory agencies, and review of
publicly available and practically reviewable information identifying
current and historical uses of the property and surrounding properties.
All conclusions and recommendations regarding the subject property
represent the professional opinions of the ERM personnel involved with
the project, and the results of this report should not be considered a
legal interpretation of existing environmental regulations. ERM
assumes no responsibility or liability for errors in the public data
ERM 28 SOLSTICE/0230020/APRIL 2014
112
aNNIMIN
utilized, statements from sources outside of ERM, or developments 'Nod
resulting from situations outside the scope of this project. We make no
warranties, express or implied, including, without limitation,
warranties as to merchantability or fitness for a particular purpose.
1010
ERM 29 SOLSTICE/0230020/APRIL 2014
113
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Vigor Industrial, LLC
Phase II Investigation Report
Project Solstice
Seward Ships Drydock
Seward, Alaska
16 April 2014
www.erm.com
tt
The world's leading sustainability consultancy ERM
117
ti
Table of Contents
1.Introduction 1
1.1 Introduction 1
1.2 Limitations 1
1.3 Uses of report 1
2.Background Information 2
2.1 Introduction 2
2.2 Site Description 2
2.3 Surrounding Land 2
2.4 Historical Land Use 3
2.5 Topography and Geology 3
2.6 Hydrogeology 4
2.7 Historical Environmental Investigations 4
3.Work Performed and Rationale 7
3.1 Introduction 7
3.2 Statement of Phase II ESA Objectives 7
3.3 Health&Safety Procedures Adopted 8
3.4 Scope of Work Completed 8
3.4.1 Upland Drilling Activities 8
3.4.2 Soil Sampling 9
3.4.3 Monitoring Well Installation and Groundwater Sampling 9
3.4.4 Surface Water Sampling 10
3.4.5 Sediment Sampling 10
3.5 Investigation-Derived Waste Management 10
4.Findings&Results 11
4.1 Regulatory Framework 11
4.2 Field Observations 11
4.2.1 Soils 11
4.2.2 Groundwater 11
4.2.3 Surface Water 11
4.2.4 Sediment 12
4.3 Soil Sample Analysis Results 12
4.4 Groundwater Analysis Results 12
4.5 Surface Water Analysis Results 12
4.6 Sediment Analysis Results 13
ERM 1 16 APRIL 2014
118
woad
5.Summary and Conclusions 14
6. References 15
7.Statement of Conformance with ASTM El 903-11 16
Na
ERM
11 16 APRIL 2014
119
4Ilrr Attachments
ATTACHMENT I FIGURES
ATTACHMENT/I TABLES
ATTACHMENT III FIELD NOTES AND SAMPLING DATA SHEETS
ATTACHMENT IV SOIL BORING AND SEDIMENT CORE LOGS
ATTACHMENT V LABORATORY DATA SHEETS AND CHAIN OF CUSTODY(Included as electronic file)
ERM 111 16 APRIL.2014
120
1 . Introduction
1.1 Introduction
ERM-West, Inc. (ERM)was commissioned by Vigor Industrial, LLC, hereinafter referred to as Vigor,to undertake a Phase II
Environmental Site Assessment(ESA)at the Seward Ships Drydock facility, located at the Seward Marine Industrial Complex,
7-Mile Nash Road, Seward, Alaska (the Site).
The Phase II ESA sampling locations were established to provide an overall representation of Site conditions. Regulatory limits
considered in this assessment include those established by the Alaska Department of Environmental Conservation (ADEC)
under Alaska Administrative Code Section 18 Chapter 70(18 AAC 70)and Alaska Administrative Code Section 18 Chapter 75
(18 AAC 75).
This report documents the Phase II ESA for soil, groundwater, and marine sediment. A Draft Phase I ESA for the Site was
completed by ERM in January 2014.
Vigor is considering a financial transaction associated with the Site referred to herein as Project Solstice.
1.2 Limitations
The report is based upon the application of scientific principles and professional judgment to certain facts with resultant
subjective interpretations. Professional judgments expressed herein are based on the facts currently available within the limits
of the existing data, scope of work, budget, and schedule. We make no warranties,express or implied, including,without
limitation,warranties as to merchantability or fitness for a particular purpose. In addition, the information provided to Vigor in this
report is not to be construed as legal advice.
1.3 Uses of Report
ERM is not engaged in conducting environmental studies and reporting for the purposes of advertising, sales promotion, or
endorsement of any client's interests, or other publicity purposes. Vigor acknowledges that any reports prepared by ERM are for
the exclusive use of Vigor and agrees that ERM's reports or correspondence will not be used or reproduced, in full or in part,for
such promotional purposes, and may not be used or relied upon in any prospectus or offering circular. Vigor also agrees that
none of its advertising, sales promotion, or other publicity matter containing information obtained from this work and report will
make reference to ERM's trade name.
Nothing contained in the report provided by ERM shall be construed as a warranty or affirmation by ERM that the Site and
property described in the report are suitable collateral for any loan, or that acquisition of such property by any lender through
foreclosure proceedings or otherwise will pose no risk of potential environmental liability on the part of such lender.
ERM 1 16 APRIL 2014
121
2. Background Information
2.1 Introduction
This section summarizes the current Site setting and historical land use,which are described in detail in ERM's Draft Phase I
ESA report dated January 20,2014.
2.2 Site Description
The general location of the property and the physiographic features of the surrounding area are shown on Figure 1, developed
from the United States Geological Survey(USGS)7.5-minute quadrangle for Seward,Alaska,dated 1995. Figure 2 provides a
site layout, including leasehold boundaries and major site features.
The Seward Ships Drydock(SSD)operations are conducted on Block 7 of the Seward Marine Industrial Center(SMIC)located
it._ �. at Mile 7 Nash Road, Seward,Alaska.The Site is currently owned by the City of Seward. According to the Kenai Peninsula
Borough Tax Assessor records,the Site contains 7.34 acres of land and consists of Parcel Number 14534046. SSD leases
Lot 1A and Lot 3 of Block 7. The area leased by SSD includes:
• Two uncovered work bays and one covered work bay(Lot 1A),connected by a rail system to the 250-ton SyncroLift;
• Uplands repair berth(Lot 3)with a rail and key system that allows ships to be moved from the Travelift to the shipbuilding
zone;
• The Fabrication Building that is an approximately eight-story high,three-sided building for vessel construction and repair,
that also contains an office space:
• Metal storage/lay-down areas;
• Gravel parking lot;
• Oil/water separator with containment:
• Hazardous materials storage building;
• A non-hazardous waste storage area(uncovered): and
• Office trailers.
SSD also conducts operations in the SMIC but outside the leasehold area, including:the SMIC Boat Basin;Travelift,the
250-ton Marine SyncroLift, and the associated dock rail system and transfer pit. Vessels are transported from the SyncroLift on
the rails to the transfer pit,then to upland concrete berth into the fabrication building. The open side of the fabrication building
can be curtained to protect the vessels from precipitation.
2.3 Surrounding Land
The subject property leasehold is located in a marine industrial area across Resurrection Bay from the Seward,AJauhe,townsite.
slimy The obuthngpmpenbooand nearby land use include:
��
snw 2 ,n APRIL zm^
122
• North: City of Seward Washdown Pad (Block 7, Lot 4);
• East: The eastern portion of Block 7, Lot 4 is used for storing derelict boats.The city moves the boats to this location when
they have been abandoned in the boat storage area. Block 6 is immediately east of Block 7. Only Lot 1 is currently leased
by Global Towers for placement of a cell tower;
• South:The southern portion of Block 7, Lot 4 is part of the active boatyard and two boats were parked there at the time of
the site visit. Block 8, south of Block 7 is unleased, undeveloped land in the alluvial fan of Fourth of July Creek; and
• West:A boat basin and dock with a 250-ton Marine SyncroLift for pulling vessels out of the water.
Based on ERM's observations,the closest residences are located approximately one mile north of the subject property on Nash
Road. No visual evidence of environmental concern was observed on immediately surrounding properties.
2.4 Historical Land Use
The SMIC was developed by filling the Fourth of July Creek delta with quarried and/or dredged material from Resurrection Bay
between 1980 and 1985. By 1988 SSD moved its facilities to the SMIC, leasing Block 7, Lots 1A and 3.The subject property
(Block 7, Lot 1A)has been operated by SSD since 1988 under an agreement with the owner, the City of Seward.The facility has
undergone frequent improvements since initial construction.
2.5 Topography and Geology
The subject property is located in Seward,Alaska, located in the south-central portion of Alaska on the Kenai Peninsula region.
Seward is located at the north end of Resurrection Bay. The SMIC is located at the mouth of Fourth of July Creek across
Resurrection Bay from the main Seward townsite.The subject property is part of the SMIC,which was constructed on the
northern portion of the Fourth of July Creek alluvial fan with quarried and/or dredged material from Resurrection Bay.
The property is located at an elevation of approximately 15 feet above mean sea level, and is generally flat around the buildings
and parking areas.The overall topographic trend of the surrounding area is to the southwest towards Resurrection Bay.
Mountains surrounding the site reach elevations of 2,000 feet within one mile of the subject property.The closest surface water
features to the subject property are Carlanna Creek, immediately northwest of the subject property, and Fourth of July Creek
located south of the subject property. The region is a temperate rainforest with approximately 68 inches of precipitation per year.
The Site was constructed on fill material placed on the Fourth of July Creek alluvial fan.The area is discussed in Geological
Survey Professional Paper 542-E, Effects of the Earthquake of March 27, 1964, at Seward, Alaska. The publication indicates
Fourth of July Creek has built a triangular-shaped fan about two miles long and one mile wide at Resurrection Bay.The fan only
projects into the bay a short distance beyond the mountain front and is nearly flat in most places. Fourth of July Creek flows in
several channels across the fan. Most of the fan deposits are sand and gravel. The report indicates the thicknesses of the fan
deposits are not known but probably exceed several hundred feet along the edge of the bay. The steep underwater face of the
alluvial fan at Fourth of July Creek reportedly suffered submarine landslides during the 1964 earthquake
Resurrection Bay is a deep fjord about 25 miles long and three to five miles wide,with a maximum depth of 978 feet.According
to the SMIC website,the area around the SMIC dock is dredged to a depth of-21 to-25 feet mean lower low water.The City of
Seward is proposing to deepen portions of the boat basin to a depth of-30 feet along with other improvements.
Shallow groundwater flow would be expected to come from the mountains to the northeast and move southwest towards
Resurrection Bay. It is important to note that groundwater flow direction can be influenced locally and regionally by the presence
of tidal action, surface topography, recharge and discharge areas, horizontal and vertical inconsistencies in the types and
location of subsurface soils, and proximity to water pumping wells. Confirmation of specific geologic and hydrogeologic factors
affecting groundwater flow beneath the subject property is beyond the scope of this Phase II ESA.
ERM 3 16 APRIL 2014
123
Based on information from the City of Seward, a water supply well serves the SMIC located approximately one mile north of the
subject property.
2.6 Hydrogeology
In preparation for development of the SMIC the USGS completed a hydrologic survey of the Fourth of July Creek area in
1981.The report is entitled; Hydrologic Reconnaissance Near Fourth Of July Crook, Seward, Alaska. USGS Water-Resources
Investigations 81-21 and it states, in part:
The unconfined alluvial aquifer that underlies the valley flats is composed primarily of sand and gravel. Water infiltrates
to the aquifer from Fourth of July Creek, from direct infiltration of precipitation that falls on the fan, and from small
streams draining the bedrock walls of the va/Joy.
High flow rates and poor filtration of pollutants are characteristics of coarse-grained materials such as those that
constitute the unconfined aquifer and the overlying unsaturated materials in the study area. Pollutants, such as oil,
chemicals, or biological waste, applied to or spilled on the land surface will rapidly reach the aquifer and migrate
downgnadioni The alluvial aquifer is therefore susceptible to pollution. The lower 0.5 mi of the fan is particularly
susceptible to pollution because the water table is close to the land surface;consequently, both the amount of filtration
and the time it takes for the infiltrating water to reach the aquifer are reduced relative to areas upstream.
2.7 Historical Environmental Investigations
ERM was provided with several historical reports for the subject property. A summary of the reports is presented below.
1) Seward Sh/p�Dgvd�ck3�n /napochun Seward, Prepared Inc. (E&E) Prepared
� ~ Inspection, Alaska. by: Environment, � 2007.
�~� for the United States Environmental Protection Agency(USEPA). E&E performed a site inspection for the USEPA in 2007.
E&E collected 19 surface soil samples from suspected sources across the subject property.The results indicated that:
• Benzo(a)pyrene and diesel range organics(DRO)exceeded Alaska Department of Environmental Conservation
(ADEC)soil cleanup levels in the Transfer Pit and the Covered Bay;
• Only DRO exceeded soil cleanup levels at the Solvent Storage Area and Maintenance Building; and
• Benzo(a)pyrene,Aroclor-1254, and DRO exceeded cleanup levels in the spent sandblast grit stockpile.
The report compared the sample results to a background soil sample collected approximately upgradient of the subject
property, along Fourth of July Creek.
E&E also collected three sediment samples:two from the banks of Resurrection Bay and one from a north-south oriented
ditch that runs overland, east of the site. The results for the ditch sample indicated that arsenic,chromium, and DRO were
elevated with respect to a background sediment sample collected approximately three miles away. The results from the two
Resurrection Bay samples were comparable with respect to the background sample. The Site Inspection Report concluded
that hazardous substances were present at significant concentrations throughout the subject property, but that no
hazardous substances were detected in the samples from Resurrection Bay at elevated concentrations with respect to
background concentrations.
Based on the findings of the 2007 investigation EPA determined that no further action was required under the Federal
Superfund program was warranted at the site unless new information warranting further consideration was discovered.
On 16 January 2014, SSD received a letter from EPA stating that the findings of a 10 April 2013 Stormwater Inspection
Report by the ADEC indicated that the Transfer Pit drainage and French drain system were conditions not previously
%^or
ERM 4 16 APRIL 2014
investigated and considered in the 2007 site inspection. EPA determined that a re-assessment of the site may be warranted
to determine any potential impacts the subsurface and groundwater.
2) Field Summary Report for Spent Sandblast Media Characterization&Disposal Program, Seward Ship's Drydock,
Incorporated, Seward, Alaska. Prepared by: TELLUS Ltd., February 2009. Prepared for SSD.
In September 2008, TELLUS, Ltd. screened and sampled the SSD spent sandblasting grit stockpile for BTEX, gasoline
range organics(GRO), DRO, RRO, HVOCs, semi-volatile organic compounds(SVOCs), Synthetic Precipitation Leaching
Procedure for the previous methods, and Toxic Characteristic Leaching Procedure for inorganic compounds.TELLUS, Ltd.
provided the results to the Kenai Peninsula Borough for approval of disposal at their Central Peninsula Landfill (CPL)facility.
After receiving approval, TELLUS, Ltd. hauled the grit to the CPL for disposal.
3) Field Summary Report for Solvent Storage Area Characterization Activities, Seward Ship's Drydock, Incorporated, Seward,
Alaska. Prepared by: TELLUS Ltd., March 2009. Prepared for SSD.
In September 2008, TELLUS, Ltd. screened and sampled a segregated soil stockpile produced when contaminated soil was
removed from the Solvent Storage Area on the northeastern portion of the property. TELLUS collected two samples from
the previously excavated area and two samples from the stockpile. The samples were analyzed for benzene,toluene,
ethylbenzene, and xylenes(BTEX), GRO, DRO, residual range organics (RRO), SVOCs, target analyte metals,and
tributyltin (TBT). The excavation area samples were found to contain low levels of several compounds;the results were
below the most stringent current ADEC soil cleanup levels.The results of the stockpile samples were found to have
elevated levels of several analytes; the results exceeded ADEC cleanup levels for DRO, chromium, and tributyltin.The
report indicated that disposal options were being considered.
4) Interim Field Summary Report for Cleanup, Investigation&Site Characterization Program, Seward Ship's Drydock,
Incorporated, Seward, Alaska. Prepared by: TELLUS Ltd., September 2009. Prepared for:SSD.
TELLUS, Ltd. completed a sampling program in July and August 2009 that included 58 soil borings from across the lease
area. Nine of the borings were advanced in the transfer pit.TELLUS, Ltd.collected one sample from each boring from a
depth of 1.5 to 2.5 feet.The samples were analyzed for GRO, DRO, RRO, and BTEX only. The report indicated that
compounds were either not detected or present at low levels in all of the samples.All results were below the ADEC soil
cleanup levels.The report concluded that the subject property did not contain significant petroleum hydrocarbon impacts.
5) ADEC Decision Document:Seward Ship's Drydock Cleanup Complete Determination. Prepared by:ADEC, March 2013.
Letter sent to SSD.
The ADEC determined that soil cleanup of the site was complete, based on the following points:
• The spent sandblast grit stockpile and the Solvent Storage Area soil were removed and transported for disposal to the
Kenai Peninsula Borough landfill.
• No petroleum hydrocarbons were detected in 2009 confirmation samples from the subject property.
• ADEC calculated average contaminant concentrations from the 2007 E&E report and found that benzo(a)pyrene,
arsenic, chromium, and copper were the only contaminants of concern to exceed ADEC soil cleanup levels.
• Arsenic and chromium occur naturally in Alaska soils.
• Copper exceeds only the migration to groundwater cleanup level,and the subject property and surrounding area are
served by water from the City of Seward public drinking water system; and
Nod
ERM 5 16 APRIL 2014
125
� '
~ ' • Benzo(a)pyrene is produced by incomplete combustion of organic material. Exhaust from internal combustion engines
is the most likely source of this compound. The ADEC feels that the benzo(a)pyrene likely collects on the spent
sandblast media during sandblasting operations and is periodically removed along with the spent media.
The letter states that the determination does not preclude the ADEC from requiring additional assessment if future
information suggests that the subjec property may pose an unacceptable risk to human health or the environment.
Slow
ERM 6 ,n APRIL um^
126
3. Work Performed and
Rationale
3.1 Introduction
The investigation was designed and implemented as follows:
• In a manner generally consistent with ASTM International (ASTM)Standard E 1903-97 Standard Guide for Environmental
Site Assessments:Phase II Environmental Site Assessment Process;
• In a manner generally consistent with Vigor protocols;
• Following ERM Standard Operating Procedures; and
• In accordance with Federal, State, and local law.
Work was generally conducted in accordance with the Sampling and Analysis Plan outlined in the ERM's proposal to Vigor,
dated 20 February 2014, and summarized in Section 3.4. ERM was responsible for the completion of all elements, including the
hiring of drilling and analytical laboratory subcontractors. ERM directed and oversaw all elements of the work scope.All work
was conducted by properly trained and licensed ERM employees/subcontractors and was conducted in compliance with
applicable country and local laws, and in accordance with established Vigor protocols. Sod
3.2 Statement of Phase II ESA Objectives
The work is being conducted as part of the due diligence project, as Vigor is considering a financial transaction associated with
the existing facilities and equipment currently owned by SSD.The objectives of the Phase II ESA are to characterize soil,
groundwater, surface water, and sediment conditions in areas where recognized environmental conditions were identified in the
Phase I ESA.The Phase II ESA will be used to determine if there are any potential environmental liabilities associated with
those Site conditions and establish baseline site conditions prior to the completion of the transaction by Vigor. The draft Phase I
ESA identified recognized environmental conditions associated with the following issues:
• Vessel wash water and site storm water are discharged to the Transfer Pit,which then discharges to the storm water
infiltration drain. The quality of discharge is evaluated visually as part of the requirements of the facility storm water permit.
The permit requires SSD to visually inspect the water in the Transfer Pit for evidence of an oily sheen prior to discharging.
Wash water and storm water come into contact with areas of metals and chemical use and storage throughout the site,
including fabrication, raw material storage, painting activities, non-hazardous waste storage, and used grit storage areas.
Therefore, it is possible that organics, metals(including copper,zinc, lead, and chromium), and potentially tributyltin from
current or former SSD operations may become entrained in storm water and be discharged to the subsurface. Organics and
metals in surface water and/or sediment could pose a risk to ecological marine receptors.
• Although wastewater is discharged to the unpaved ground surface and to a French drain, groundwater conditions were not
evaluated by the USEPA, SSD,or ADEC as part of site investigations conducted between 2007 and 2010.The
investigations only addressed the condition of shallow soil and/or intertidal sediment. In 2013,ADEC issued a"No Further
Action" letter(ADEC 2013)for conditions associated with shallow soil and sediment contamination identified at the site.
There are potential impacts associated with deeper soil,groundwater, in water sediment, and surface water that were not
evaluated in the 2007 and 2010 investigations.
ERM 7 16 APRIL 2014
127
This investigation was designed to meet customer needs and has not been completed to meet environmental regulatory
requirements.
3.3 Health&Safety Procedures Adopt d
Prior to mobilization for the effort, ERM prepared a site-specific Health and Safety Plan (HASP)to document the hazards of the
work and appropriate procedures and actions necessary to ensure the work was conducted in a safe and compliant manner.All
ERM employees and contractors present on the Site attended daily health and safety kickoff meetings during the course of the
field effort. The fieldwork was undertaken in accordance with the project/site upauifioHASP, bycompetent and properly
trained/licensed ERM hydrogeologists/ ngineers and contractors.
Field personnel were informed about the possible health and safety risks and measures were put in place to mitigate the
identified risks. Field personnel wore the necessary personal protective equipment(PPE). Spacifioo||y, all work was conducted
under standard Level D protocol (OSHA protocol)consisting of standard clothing/coveralls, chemically resistant gloves, hard
hatu, safety glasses, and steel-toe boots.
Prior to commencing intrusive activity or ground disturbance(drilling or excavation)at any location, ERM undertook the following
steps in order to avoid contact with any buried cables, pipes, or other utilities:
• Proposed drilling locations and all available service plans were reviewed by the fieldwork manager, the City of Seward, and
the SSD facility manager.
• Drilling locations were inspected by the fieldwork manager.
• Specialist clearance surveying service was provided by the City of Seward.
• /\noi�knifa and ''Gupe�Suoka�equipped vv)1hair vacuum vvasused tophyoioaUydaa,point disturbance/000hone8o2feet
-�- ba|mwthe|ona|frootUne(appnoximo$o|y6'0faetba|mwgroundaurface[bQo]).
3.4 Scope of Work Completed
The Phase II ESA scope of work included:
• Performing subsurface clearance in accordance with ERM's established SSC program;
• Oversight of advancing of 9 borings, using direct-push drilling technology,to a maximum depth of 25 feet bgs or
refusal;
• Collection of two soil samples (shallow and deep)per boring. The shallow sample was submitted for initial laboratory
analysis and the deep sample was submitted for archiving and potential follow up analysis;
• Oversight of installation of 7 temporary groundwater monitoring points at selected boring locations;
• Collection of groundwater samples from each temporary monitoring point;
• Collection of three surface water samples from the drainage ditch to the east of the Site; and
• Oversight of the advancement of five sediment cores to a maximum depth of 8 feet below the mudline.
• Collecting sediment samples on 2-foot increments from the sediment cores. The surface and next-deepest samples
were submitted for laboratory analysis, and the remaining samples were submitted for potential follow up analysis.
The completed field activities are described below.
3.4.1 Up/and Drilling Activities
The upland drilling scope of work consisted of installing soil borings, and collecting two soil samples and one groundwater
sample from each boring. One soil sample and the groundwater sample were submitted for initial laboratory analysis.The
ERM 8 16 APRIL 2014
second uoUoamp��omeach bor�gwas oubmd�dUn�ahsboro¢oy for omhi�ng. pending mmu8eof the hn�m|mna�o�./�| ��,
upland drilling activities were performed from 26 February to 28 February 2014 by GeoTek Alaska, under ERM's supervision.
All borings were advanced to a depth of approximately 6 feet bgs using an air-knife and vacuum, in order to confirm the absence
of buried utilities, in accordance with ERM's SSC procedures.A total of nine soil borings were installed to a maximum depth of
25 feet bgs using a direct push drill rig. Temporary groundwater monitoring wells were installed in seven of the soil borings.
All boreholes were installed in accordance with Alaskan practice standards for soil drilling, monitoring well installation, and
equipment decontamination,
Soil samples were examined by an ERM field geologist, and observations about the physical characteristics such as texture,
color, and odor were recorded on the boring logs, as well as the lab sample depths and depth to groundwater(where
applicable).
After completion of each borehole, the drilling equipment was cleaned and decontaminated using a high pressure steam washer
and de-ionized water rinse.
3.4.2 Soil Sampling
Continuous soil sampling was performed at each boring location to describe the soil characteristics and collect soil samples for
laboratory analysis. Two soil samples were collected from each boring. If visual observations indicated the potential impacts to
surface soils, a shallow soil sample was collected. If there were no indications of potential impacts to shallow soils, a soil
sample was collected at or slightly above the groundwater interface(capillary fringe), the most probable zone of impact from
contaminant releases to the subsurface.
�.
=�.
Figure 3 presents the soil boring locations. The soil boring logs are included in Attachment IV.All samples were analyzed for
volatile organic compounds(VOCs). SVOCa, total petroleum hydrocarbons (TPH—GRO/DRO/ORO), meta|s, polychlorinated
biphenyls(PCBo), and tributyltin (TBT).A summary of the soil samples is provided in Table 3-1 (Attachment 11)
All samples were placed in the required laboratory-provided containers, |obe|ed, transferred to a cooler, packed with ice and
shipped to ALS Environmental, located in Kelso,Washington, for analyses of VOC, SVOC, TPH-ORO/DRO, Metals, PCBs,
and TBT.Attachment V provides the chain-of-custody forms along with the laboratory reports.
3.4.3 Monitoring Well Installation and Groundwater Sampling
Seven temporary monitoring wells were installed in the presumed hydraulically-downgradient areas of potential contaminant
sources at the Site (Figure 2). The wells were installed using 2-inch PVC casing to a maximum depth of 25 feet bgs.The well
casing was lowered to the bottom of the borehole and the drill casing pulled back to expose the screen to the aquifer formation.
All non-disposable sampling equipment was decontaminated before and after sampling each temporary well using the following
procedure: (1)wash and rinse equipment with tap water and laboratory-use neutral detergent; (2)rinse with tap water; and
(3)rinse again with deionized water.
Prior to groundwater aampUng, the depth-to-water was measured from the top of the well casing using an electronic water
interface probe. Field notes and sampling data sheets are provided in Attachment III. The groundwater samples were collected
via low-flow sampling techniques using a peristaltic pump with disposable polyethylene tubing. Field parameters (pH,
temperature, dissolved oxygen, oxidation-reduction potential, and electrical conductivity)were collected during purging.
Groundwater was purged until field paramet r readings stabilized, then a groundwater sample was collected.
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ERM 9 16 APRIL 2014
All samples were collected in the required bottles, preserved according to the specific analytical method standards, labeled,
transferred to a cooler, packed with ice and shipped to ALS, located in Kelso, Washington, for analysis of VOCs, SVOCs,
TPH GRO/DRO/ORO, metals, PCBs, and TBT. Samples were accompanied by chain-of-custody documentation
(Attachment V).
A summary of the groundwater samples collected is provided in Table 3-1 (Attachment II)
3.4.4 Surface Water Sampling
A total of three surface water samples were collected from the freshwater drainage ditch to the east of the subject property.
The samples were collected directly in required bottles using grab sampling techniques. Field parameters (pH, tempenoture,
dissolved oxygen, oxidation-reduction potential, and electrical conductivity)were collected during sampling. Field notes and
sampling data sheets are provided in Attachment Ill.
All samples were collected in the required bottles, preserved according to the specific analytical method standards, labeled,
transferred to a cooler, packed with ice and shipped to ALS, located in Kelso,Washington, for analysis of VOCs, SVOCs,
TPH—GRO/DRO/ORO, metals, and PCBs.Samples were accompanied by chain-of-custody documentation (Attachment V).
A summary of the surface water samples collected is provided in Table 3-i (Attachment II).
3.4.5 Sediment Sampling
Continuous coring, using a Vibracore sampler, was performed at each sediment sampling location to describe the sediment
characteristics and collect samples for laboratory analysis. Sediment samples were collected on approximately 2-foot
I^ increments The two upper most samples vveneuubmi�ndfor|obomVory
_' C-4).
analysis. The remaining samples were submitted for archiving pending follow up analyses. The entire core from C-5 was
composited into a single sample that was submitted for laboratory analysis.
Figure 3 presents the sediment coring locations. The core logs are included in Attachment IV. All samples were analyzed for
VOCs, SVOCs, TPH—GRO/DRO/ORO, metals, PCBs, and TBT.A summary of the sediment samples is provided in Table 3-2
(Attachment II).
Duplicate samples and Matrix Spike and Matrix Spike Duplicate samples were collected for Quality Assurance/Quality Control
(QA/QC)purposes, in order to evaluate laboratory performance.ALS used three methods of QC,which are analysis of surrogate
spike compounds, matrix spikes, and laboratory method blanks. In general, the results of the QC samples obtained by the
application of the surrogate spike compound, matrix spike, and method blank laboratory analysis methods were considered
satisfactory, and within the acceptable limits of the methods.A data validation of the laboratory results was performed using the
QAIQC samples(Attachment V).
3.5 Investigation-Derived Waste Management
Investigation-derived waste (IDW) including plastic, cardboard, soil, and groundwater were generated during the completion of
the Phase II effort. This material was managed by ERM in accordance with all applicable laws and Vigor policy and procedures.
At present, generated wastes are being stored in steel drums pending appropriate off-site disposal,which must be coordinated
with the Site owner and Vigor.
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ERM 10 16 APRIL 2014
4. Findings & Results
Regulatory Framework
The ADEC has established rules and regulations regarding the management of releases to the environment of oil and
hazardous substances under 18 AAC 75. This includes established risk-based cleanup targets for soil and groundwater. The
cleanup levels used for screening purposes in this investigation were based on the likely exposure scenarios at the site,
consisting of direct contact, ingestion, and migration to groundwater. The Site receives an average of over 68 inches of rainfall
annually and therefore the"over 40-inches of rainfall"cleanup levels were used to compare the results to direct contact and
ingestion exposure criteria.
AEDC has established risk-based water quality standards under 18 AAC 70 for evaluating risk to receptors via multiple surface
water exposure pathways. For the purpose of this investigation,the only applicable surface water risk exposure pathway was
assumed to be risk to aquatic life. In the instances where there is no surface water criteria established, the groundwater cleanup
level is used for screening purposes.
AEDC has not established state-specific screening values or cleanup levels for sediments. However, per the AEDC technical suid
memorandum on Sediment Quality Guidelines(SQGs), dated January 2013, both 18 AAC 70 and 18 AAC 75"provide a clear
expectation that parties responsible for contaminated site must include consideration of contaminated sediment in the
assessment and cleanup process." The recommended method for evaluating sediment quality is to screen sediment data
against statistically derived Threshold Effects Level (TEL)and the Probable Effects Level (PEL).The TEL is the concentration
below which adverse effects to benthic receptors are expected to occur rarely.The PEL is the concentration above which
adverse effects are frequently expected.
4.2 Field Observations
4.2.1 Soils
Soils throughout the subject property consist of sand and gravels,with some silty sand layers. Shallow soil included some sandy
gravel fill material that appeared to be reworked native material. Some areas of black sand, indicative of sand blast grit,were
also observed. No field indications of contaminant impacts (e.g., sheen, staining, or odors)were observed.
4.2.2 Groundwater
Groundwater in the temporary monitoring wells was observed between 16 and 20 feet bgs. The groundwater level is likely to be
tidally influenced. Tides in Resurrection Bay during the field work period were predicted to fluctuate up to 12 feet. No indication
of non-aqueous phase liquid (NAPL), staining,odors, or evidence of impact was noted in relation to groundwater.
4.2.3 Surface Water
No indication of sheen, NAPL, staining, odors, or evidence of impact was noted in relation to surface water.
ERM 11 16 APRIL 2014
131
4.2.4 Sediment
Sediment in the area adjacent to the subject property consists of silt and silty aondo,with occasional gravel layers. Shallow
sediment(0 to 1-foot below mudline)contained some metal fragments, debhm,and organics. Some indications of impacts,
including black sand, and a slight oily sheen were observed in cores adjacent to the SyncroLift.
4.3 Soil Sample Analysis Results
A total of nine soil samples representing the nine sample locations were analyzed.The laboratory reports are presented in
Attachment V. Tables 4-1 and 4-2 (Attachment II)present the summary of soil analytical results. Complete soil analytical results
are provided in the laboratory reports(Attachment V).
No VOC,SVOC,TPH—GRO/DRO/ORO, PCBe, or TBT concentrations were detected at concentrations exceeding the
reference standards in soil samples.
The metals arsenic and chromium were detected in soil samples above the ADEC Method 2 screening level for migration to
groundwater. Exceedances were within previously accepted background levels of 9.8 milligrams per kilogram (mg/kg)and
34.8 mg/kg respectively(E&E 2007).
4.4 Groundwater Analysis Results
The physical chemical parameters (pH,temporatune,and electrical conductivity)were measured during groundwater sampling
and found to be within the typical range for groundwater.Table 4-3(Attachment II)presents a summary of the field parameters
measured on site during groundwater sampling activities.
Slow Table 4-3 (Attachment II)presents a summary of groundwater analytical results. Complete groundwater analytical results are
provided in the laboratory reports(Attachment V).
No TPH—GRO/DRO/ORO,TBT, or SVOCs were detected in any groundwater samples. Chloroform, methyl chloride,and
toluene were detected at concentrations below the groundwater cleanup levels.
Metals were detected in all the groundwater samples analyzed for total metals. Concentrations were berm the groundwater
cleanup(ave|o,with the exception of lead in BH-01 and BH-06.Visual observations of these samples indicated that turbidity was
elevated and had some solids entrained in the sample.These exceedances are likely due to naturally-occurring lead in soil that
was entrained in the sample.
4.5 Surface Water Analysis Results
The physical chemical parameters (pH,bampenatuna, and electrical conductivity)were measured during surface water sampling
and found tobe within the typical range for surface water.Table 4-4(Attachment II)presents e summary of the fio|dparameters
measured on site during surface water sampling activities.
Table 4-4{Attachment II)presents a summary of surface water analytical results. Complete surface water analytical results are
provided in the laboratory reports (Attachment V).
No PCBs or TPH—GRO were detected in the surface water samples. TPH—DRO/ORO and SVOCs were detected at low
concentrations that are below the freshwater aquatic life criteria for surface water.Acetone; 1,2,4-Trimethylbenzene;
m,p-xylenes; o-xylene; naphthalene; and toluene were in detected at concentrations below the freshwater aquatic life criteria in
one or more of the surface water samples.Methylene chloride was detected in the upstream sample(SW-01)at a concentration
§11^__ of5.2ug/L.which exceeded the applicable screening level (gm Methylene eihy|anenh|nhde\ua
��
ERM 12 16 APRIL 2014
132
•
NI
solvent commonly used in analytical laboratories and was detected in the laboratory method blank and trip blank samples. It is
likely that this exceedance is due to laboratory contamination.
4.6 Sediment Analysis Results
A total of nine sediment samples representing the five coring locations were analyzed. The laboratory reports are presented in
Attachment V.Table 4-5(Attachment II)presents the summary of sediment analytical results. Complete sediment analytical
results are provided in the laboratory reports(Attachment V). Sediment sampling results were screened against the TELs, PELs,
and the Dutch Intervention values respectively.
All VOC,TPH—GRO/DRO/ORO, and PCB concentrations in sediment were non-detect or below the TELs.
Metals were detected in all sediment samples at concentrations below the TEL,with the exception of copper. Copper was
detected in all the sediment samples at concentrations above the TEL, but below the PEL. Concentrations of copper in sediment
were similar to copper concentrations in upland soil and previously accepted background soil samples(E&E 2007).
PAHs were detected in all the sediment samples at concentrations above the TEL in one or more samples. Only one sample,
the 0.0-to 0.5-foot sample from C-1, had concentrations of PAHs above the respective PELs for acenaphthene,fluoranthene,
and pyrene. Exceedance factors of these detections were less than two times the PEL. The concentrations of all other PAHs
were below the PELs. PAH concentrations in the underlying sediment sample interval (C-1-1-2, collected from 1 to 2-feet below
mudline)were either non-detect or below the TEL.
TBT was detected at low to moderate levels in all the sediment samples, except for C-1-1-2 and C-2-0-2. There are no bulk
sediment screening level values for TBT in marine sediments.The porewater screening level value for TBT in marine sediment
is 0.15 ug/L. For reference the freshwater bulk sediment screening level value for TBT is 75 ug/kg.
ERM 13 16 APRIL 2014
133
_ ~
kiwi Summary and d���������D��~�����%
�N�, **= ��~~.~~.~.~~. ,� ~..~�w ��....~~n~~��n~�.~~~
ERM was commissioned by Vigor to undertake a Phase|| ESA at the Seward Ships Drydock facility located at the Seward
Marine Industrial Complex, 7-Mile Nash Road, Sewand,Alaska. This report documents the Phase II investigation and
assessment of the conditions of soil,groundwater,surface water,and sediment. A draft Phase 1 assessment was completed by
ERM at the Site in January 2014.Vigor is considering purchasing the Site as part of a potential transaction referred to as Project
Solstice.
Based on the evaluation of analytical results and field data gathered during the Phase II ESA,the following conclusions are
provided:
• The Site geology generally consists of sand and gnave|a,with some silty sand layers. Shallow soil included some that
consisted of sandy gravel fill material that appeared to be reworked native material.
• Groundwater is approximately 16 to 20 feet bgs.
• No field indications of contaminant impacts to soil or groundwater(e.g.uheon, stnining, or odors)were observed.
NNW
• The soil analytical results showed no concentrations of VOC, SVOC, TPH- GRO/DRO/ORO, metals, PCBo, or TBT above
the soil screening levels or background concentrations.
• Groundwater analytical results showed no concentrations that were above the groundwater cleanup levels or background
levels.
• Surface water analytical results showed all concentrations were below the freshwater aquatic life criteria,or were due to
laboratory contamination.These results also indicated that surface water quality does not change significantly from
upstream to downstream of the site.
• Sediment analytical results indicated that TBT and metals are present in sediment in the vicinity of the SyncroLift,at
concentrations that are below applicable screening level values.
• Sediment analytical results indicate that PAHs are present at concentrations above the PELs in the vicinity of the SyncroLift.
These elevated concentrations are limited to the shallow sediment(0 to 1-foot below mudline).
ERM 14 16 APRIL 2014
134
6. References
Alaska Department of Environmental Conservation (ADEC). 2013. ADEC Decision Document: Seward Ship's Drydock
Cleanup Complete Determination. March 2013.
ASTM International (ASTM)Standard E 1903-97 Standard Guide for Environmental Site Assessments:Phase 11
Environmental Site Assessment Process. ASTM 2011.
Ecology and Environment, Inc. (E&E). 2007. Seward Ship's Dry Dock Site Inspection, Seward,Alaska. September 2007.
Geological Survey Professional Paper 542-E, Effects of the Earthquake of March 27, 1964, at Seward, Alaska.
Tellus Ltd. 2009a. Field Summary Report for Spent Sandblast Media Characterization &Disposal Program, Seward Ship's
Drydock, Incorporated, Seward, Alaska. February 2009.
Tellus Ltd. 2009b. Field Summary Report for Solvent Storage Area Characterization Activities, Seward Ship's Drydock,
Incorporated, Seward, Alaska. March 2009.
Tellus Ltd. 2009c. Interim Field Summary Report for Cleanup, Investigation&Site Characterization Program, Seward Ship's
Drydock, Incorporated, Seward, Alaska. September 2009. Nord
USGS 1981. Hydrologic Reconnaissance Near Fourth Of July Creek, Seward, Alaska.
ERM 15 16 APRIL 2014
135
7. Statement of Conformance
with ASTM E1903-11
We have performed a Phase II ESA at the property at the Seward Ships Drydock facility located at the Seward Marine Industrial
Complex,7-Mile Nash Road,Seward,Alaska, in conformance with the scope and limitations of ASTM Practice E 1903-11 and
for the following objectives: "The objectives of the Phase II investigation are to characterize sediment, surface water, and
subsurface soil and groundwater conditions in areas where recognized environmental conditions were identified during
completion of the Phase I ESA and to help determine if any potential environmental liabilities are associated with those Site
conditions"developed pursuant to Section 3.2 of this report.
"4"
Brendan A. Robinson,RE.
Senior Engineer
Erik C. Ipsen, P.E.
Partner
ERM 16 16 APRIL 2014
136
Attachment
Figures
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ERM 16 APRIL 2014
137
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Ilkor Sponsored by: Hunt
Introduction: May 12, 2014
Public Hearing: May 27, 2014
Enactment: May 27, 2014
CITY OF SEWARD,ALASKA
ORDINANCE 2014-003
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AMENDING TITLE 14 OF THE CITY'S CODE OF ORDINANCES
TO PROVIDE FOR INTERCONNECTION OF SMALL RENEWABLE
ENERGY SOURCES TO THE CITY'S ELECTRICAL DISTRIBUTION
SYSTEM
WHEREAS, the City Council encourages the development and use of alternative energy
production consistent with the Seward Zoning Code; and
WHEREAS, the interconnection with the city's electrical distribution system should be
allowed,provided that alternative power sources do not adversely affect the city's system or delivery
of power to other electric customers, and
WHEREAS, the City Council wishes to allow alternative energy that is safe to users, the
public, and electric utility employees.
Sir_
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,
HEREBY ORDAINS that:
Section 1. Seward City Code Section 14.01.015 Definitions is amended as follows:
St-fikeeut=Delete Bold =New
14.01.015. - Definitions.
Unless the context specifically indicates otherwise, the meaning of terms used in this title
shall be as follows:
Alternative power source. Means customer-owned electrical generation fueled by
renewable resources such as wind,solar,geothermal,biomass,or water(tidal or hydropower).
An alternative power source does not include fossil fuel generation. Alternative power sources
within the Seward Electric area are subject to Article 4 of this Title.
Applicant. Means a person, including a corporation, partnership, association, and
governmental unit or agency, who requests utility service or the extension of utility facilities or
interconnection under these provisions and who may be synonymous,as circumstances permit,with
"developer," "owner," "contractor," "builder," and similar tetins associated with the improvement
and development of real property and the construction of buildings and related improvements and
their heirs, successors.
140
CITY OF SEWARD,ALASKA
ORDINANCE 2014-003
Page 2 of 20
Application for interconnection.Means the application for interconnection of alternative
power source that must be completed by any customer wishing to interconnect to the city's
electrical distribution system as an independent power producer.
BOD (denoting biochemical oxygen demand). Means the quantity of oxygen utilized in the
biochemical oxidation of organic matter under standard laboratory procedure in five days at 20
degrees Centigrade, expressed in milligrams per liter.
Building drain. Means that part of the lowest horizontal piping of a drainage system which
receives the discharge from soil,waste,and other drainage pipes inside the walls of the building and
conveys it to the building sewer, beginning five feet (1.5 meters) outside the inner face of the
building wall.
Building sewer. Means the extension from the building drain to the service connection or
other place of disposal.
Class of service. Means the type of service rendered by the city to a customer under a
particular rate schedule.
Clean-out. Means a pipe inserted into the sewer extension through which a cleaning device
can be inserted into the sewer extension. 'tol
Collection system. Means the system of public sewers to be operated by the city and
designed for the collection of sewage.
Combined sewer. Means a sewer receiving both surface runoff and sewage.
Commercial service - Demand metered. This classification applies to demand metered
general lighting,incidental power,and other services used by commercial and industrial enterprises
whose demand is equal to or greater than 25 KVA.
Commercial service-Non-demand metered. This classification applies to single phase,non-
demand metered general lighting, incidental power, and other services used by commercial and
industrial enterprises whose demand capacity is less than 25 KW, and by multiple dwelling units
when supplied through one meter. A residential service through which an additional service point
not directly associated with the primary residence is likewise serviced will be billed under this
schedule. Customers will be classified as non-residential unless they are clearly a residential
account. The burden of proof will be on the customer.
Commercial user. Means a person or premises used for commercial or business purposes
which discharges domestic waste, not industrial waste.
141
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 3 of 20
Composite. Means the make-up of a number of individual samples so taken as to represent
the nature of sewage or industrial wastes.
Constituents. Means the combination of particles or conditions which exist in the industrial
wastes.
Contribution-in-aid-of-construction. Means that sum of money representing the cost of
making additions or modifications to utility distribution facilities and underground installations,
which the applicant or customer must pay as a condition precedent to installing the facilities
requested, and which becomes the property of the city and is not otherwise subject to refund to the
contributor.
Customer. Means the person, partnership, corporation, or entity in whose name a utility
account is held and the occupant,resident,or tenant of any premises served by a city utility. In those
cases where a utility service is not separately metered to individual tenants in a building, the
landlord/owner shall be considered a customer.
Delivery point. Means the location where the city distribution system terminates and
beyond which the customer assumes responsibility for construction and maintenance.
�✓ Demand. Means the maximum rate of delivery of electric energy during a month,measured
in kilowatts (KW) registered over a 15-minute period by a demand meter.
Domestic waste. Means any sewage emanating from residential dwellings or from domestic
activities by or for private citizens having a BOD of less than 250 ppm and/or a total suspended
solids of less than 250 ppm.
Economically feasible. Means an extension of distribution facilities will be considered
economically feasible if anticipated annual revenue from the project will recover all annual costs
plus reasonable margins to provide service to that point, and that this balance of revenue to
costs/margins can reasonably be expected to continue for the service life of the facilities constructed
for the requested service extension.
Electric service. Means the availability of electric energy at the point of delivery for use by
the customer, irrespective of whether electric energy is actually used.
Engineering. Includes the preparation of electric layouts, designs, specifications, and other
drawings and lists associated with electric construction. It also includes, but is not limited to,
making construction estimates, inspecting construction for conformance with design criteria and
specifications, staking, right-of-way acquisition, and similar and related activities necessary to the
technical planning and installation of electric distribution facilities.
142
CITY OF SEWARD,ALASKA
ORDINANCE 2014-003
Page 4 of 20
Garbage. Means all animal and vegetable refuse from food or food preparation, dead
animals, and the accumulation from restaurant grease traps,but not dish water nor wastewater,ice,
salt, and similar materials.
Industrial. This classification applies to electrical services with demand equal to or greater
than 750 KW. Industrial services with demand of equal to or greater than 5,000 KW will be served
by contract only, and only by cost-based rates of those services.
Industrial user. Means a person or premises which discharges sewage having the
characteristics of industrial wastes as distinct from domestic wastes or which has a BOD of 250 ppm
or greater and/or which has a total suspended solids of 250 ppm or greater.
Industrial wastes. Means the sewage from industrial manufacturing processes, trade, or
business as distinct from domestic waste.
Key box (curb valve, curb cock). Means the shut-off point for water service, which is the
property of the customer.
Mobile home. Means manufactured housing,as defined in section 8.15.110 of this code,built
on a chassis and/or in accordance with Department of Housing and Urban Development standards
contained in Code of Federal Regulations Title 24,Chapter 20. A mobile home shall be construed to
remain a mobile home, subject to all regulations applying thereto, whether or not wheels, axles,
hitch,or other appurtenances of mobility are removed and regardless of the nature of the foundation
required.
Mobile home park. Means any parcel, or adjacent parcels of land in the same ownership,
which is used for occupancy by two or more mobile homes. The term does not include camper parks
as defined in section 8.15.110 of this code.
Multiple residential structures. Means any building or collections of buildings having
common walls, containing two or more residential units, which include such common residential
arrangements as apartments, townhouses, row houses, and condominiums.
Natural outlet. Means any outlet into a watercourse, pond, ditch, lake, or other body of
surface water or ground water.
On-site sewage disposal. Means the use of any privy,cesspool,septic tank,or similar facility
for disposal of sewage which is not connected to the collection system.
Permanent electrical service. Means service entrance and metering equipment installed at a
given location with intent to remain for the useful service life of the city's electrical facilities
constructed for that service. The equipment will be mounted on a city pole,or customer's building,
or other structure on a permanent, non-moveable foundation. The city reserves the right of final
143
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 5 of 20
determination of whether a service will be classified permanent. All facilities will be designed and
installed in accordance with applicable codes,standards, and practices of the industry for the class of
service offered.
pH. Shall mean the logarithm of the reciprocal of the weight of hydrogen ions in grams per
liter of solution.
Point of delivery. Is that predetermined location where the city terminates its equipment or
conductors and connects with the customer's equipment or conductors.
Premises. Means the real property of the customer in a single location being served by the
city.
Pretreatment. Means that physical treatment given to sewage prior to discharge into the
collection system, or those processes utilized for this purpose.
Primary service. Means the conductors and equipment necessary to supply the customer with
electricity at the available primary voltage above 480 volts.
Primary voltage. Means the voltage supplied to the high voltage side of distribution
‘61., transformers, which include three-phase service 7,200/12,470 and 14,400/24,900.
Properly shredded garbage. Means the remnants from the preparation, cooking, and
dispensing of food that have been shredded to such a degree that all particles will be carried freely
under the flow conditions normally prevailing in the collection system,with no particle greater than
one-half inch (1.27 centimeters) in any dimension or overall.
Public sewer. Means any sewer collection system operated by or under the authority of the
city.
Public works department. Means the City of Seward public works department.
Raceway. Means a channel for holding wires,cables,or busbars,which is designed expressly
and used solely for that purpose.
Receiving waters. Means those natural outlets into which sewage is discharged.
Refuse. Means all garbage,rubbish, and waste material.
Residential or domestic user. Shall mean a person or premises who discharges an average
normal volume of domestic waste to the collection system.
Residential service. Means the providing of a utility to a single-family dwelling. Except for
"home occupations" as defined in sections 15.10.140 and 15.10.240 of this code, activities of a
144
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 6 of 20
nature requiring a business license, advertising, or whose profits and expenses are shown against
federal income taxes will be classified as "commercial."
Rubbish. Means tree and plant trimmings, paper products, rags, rubber, carpets, clothing,
straw packing,packing materials,furniture,and all other kinds of combustible waste material which
ordinarily accumulates in the operation of a household or business. "Rubbish" does not include
manure or waste from any yard or stable.
Sanitary sewer. Means a sewer which carries sewage and to which storm, surface, and
ground waters are not intentionally admitted.
Secondary service. Means service at available voltage of 480 volts or less.
Secondary voltage. Means the voltage for delivery directly to the service entrance of the
customer, i.e., the low voltage side of a distribution transformer, or(utilization voltage).
Security lights. Means a fixture or fixtures installed to illuminate private homes and areas,
including places and areas to which the public has access but which are privately owned and
controlled.
Service. Means the furnishing of a utility to a given location. lid
Service connection. Means the pipe and appurtenances required to connect an individual
property or facility to the sanitary sewer. The service connection shall start at the collection system
and terminate at the property line or easement limit and shall not include the building sewer.
Sewage. Means any combination of the water-carried wastes from residences, business
buildings, institutions, and industrial establishments, together with such ground, surface, and
stormwaters as may be present.
Sewage treatment plant. Means any arrangement of devices and structures used for treating
sewage.
Sewage works. Means all facilities for collection, pumping, treating, and disposing of
sewage.
Sewer. Means a pipe or conduit for carrying sewage.
Slug. Means any individual or combined discharge of water, sewage, or industrial waste
which in concentration of any given constituent or in quantity of flow exceeds,for any period longer
than 15 minutes, more than five times the average 24-hour concentration or flows during normal
operation.
'4400
145
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
‘trir Page 7 of 20
Storm drain and storm sewer. Means a sewer which carries storm and surface waters and
drainage, but excludes sewage and industrial wastes, other than unpolluted cooling water.
Street light. Means a system or fixture of such system,for the illumination of streets,alleys,
and other public places and areas, installed and operated at public expense.
Subdivision. Means a tract or parcel of land divided into two or more lots, sites, or other
divisions according to applicable law.
Suspended solids. Means solids that either float on the surface of or are in suspension in
water, sewage, or other liquids, and which are removable by laboratory filtering.
Tariff Means the City of Seward Utility Tariffs as approved by the City Council and
amended from time to time.
Temporary secondary service. Means service provided on an interim basis during a
construction phase or any other service provided by use of facilities which cannot be reused or
continued as permanent facilities and must be removed when the temporary need has ceased. The
duration of the service will not exceed 180 days.
Slow Thaw wire. Means the wire leading from the water main,parallel with the service line, and
coming up to the ground surface at the key box.
Toxic. Means constituents of sewage which are considered from time to time by the U.S.
Environmental Protection Agency in its listing of NRDC Priority Pollutants Schedule as adversely
affecting facilities or conditions similar to the collection system, the sewage treatment plant,or the
receiving waters.
Waste material. Means broken crockery,glass,wire,ashes,cinders,bottles,tin cans,metals,
and other similar noncombustible waste material resulting from the operation of a household or
business. Discarded vehicle bodies or other bulky or heavy objects, waste material resulting from
any manufacturing,building,or construction operation,and similar materials shall not be considered
waste material and must be disposed of by the property owner.
Water connection or water service connection. Means that part of the water distribution
system,including pipe and appurtenances,used to conduct water from the water main to a point at or
near the property line of the premises to be served.
Water connection extension. Means that part of the water distribution system extending from
the water connection into the premises served.
Section 2. Seward City Code Title 14, Chapter 15,Article 4 Interconnection to Customer-
Owned Alternate Technology and Fossil Fuel Standby Generation Equipment is amended as follows:
146
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 8 of 20 .41d
Strikeout= Delete Bold =New
Article 4. -Interconnection to With Customer-Owned Alternateive : - ' -
Standby Power Source Generation Equipment
14.15.410. - Alternateive • • ; ; : : • • ; • : ': ; Power Source.
(a) The city will permit the interconnection and operation of small (less than 25KW)
alternateive technology generation power source facilities such as wind energy
- - . - with its integrated electrical
distribution system upon compliance by the customer with the following provisions.
(1) A customer who owns any alternate technology generation shall request
approval from the city to interconnect with its system at least three months
prior to the date on which the customer intends to make any connection in
any way to the electric circuitry common to the city's integrated distribution
system.
(2) The customer shall submit to the city,along with his an application request
for interconnection, complete documentation of alternate technology
generation equipment including but not limited to: schematics; wiring
*Nod
diagrams;performance specifications;descriptions of energy storage devices,
circuit protection equipment, regulation equipment, automatic disconnect
equipment, and any other proprietary device provided by the equipment
manufacturers.
(3) Upon approval of the interconnection by the city, the customer shall agree
under special contract with the city to pay the cost of any special metering
equipment or circuit modifications determined by the city as necessary to
accomplish the interconnection;to install power factor corrective equipment
as necessary to maintain a power factor of not less than 0.9; to operate the
generation equipment in strict compliance with safety procedures established
by the city, and to accept the terms of purchase of energy or capacity or both
as set forth in the contract.
(b) The city reserves the right to refuse interconnection with alternate technology
generation facilities alternative power sources or to limit the number of
interconnections • - . . - - . • - : ; • •- on any single
substation circuit if it is determined by the city that any such interconnection would
be harmful or hazardous to its system, its employees or other customers. If a
proposed interconnection is refused by the city, the city will provide the customer
within three months of the initial request written notice of refusal, including a
statement of the reason(s) for the refusal.
147
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 9 of 20
(c) If an unauthorized interconnect is found,the city will immediately terminate service
to those facilities and reconnect the service only when all conditions of these
provisions are satisfied.
(Ord. 504, 1982)
14.15.415. Interconnection Requirements, Procedures, and Application Process for an
Alternative Power Source Less Than 25KW.
(a) Application. In order to proceed with interconnection of an alternative power
source, the customer must complete an Application for a New/Rework of
Electrical Service and an Interconnection Application. The customer shall also
provide equipment specifications, protection arrangements, and design
drawings to the city for review.
(b) Compliance with codes and standards. Interconnections shall not be fueled by
nor connected to any non-qualified alternative energy sources. Interconnection
customers shall comply with all applicable local,state,and federal codes such as
building codes, National Electric Code (NEC), and National Electrical Safety
Code(NESC)for the installation of an interconnection. Once operating,the city
reserves the right to require the customer,at the customer's expense,to provide
corrections, modifications, or additions to the interconnection as required or
recommended by government or industry regulations and standards. The city
will provide written documentation of the necessary changes and a time frame
to complete. If the customer fails to comply with the changes in the specified
time frame, the city will open and lock the interconnection.
(c) Placement of customer-owned interconnection. To maintain the existing city
distribution system's power quality and reliability,only one interconnection per
distribution transformer will be authorized.
(d) Power quality and reliability. The interconnection with the electric system shall
not cause any reduction in the quality and reliability of service provided to
other city customers. There shall be no generation of abnormal voltages or
voltage fluctuations, and the harmonic content of the interconnection output
must be below that level which would cause interference with other customer
loads, other utilities, or city facilities and equipment.
To minimize interference, the city requires the interconnection to meet the
power quality standards presented in accordance with Section 10,
Recommended Practices for Individual Consumers of the latest Institute of
Electrical and Electronics Engineers(IEEE)Standard 519,IEEE Recommended
Practices and Requirements for Harmonic Control in Electrical Power Systems.
148
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 10 of 20
In addition to meeting all requirements identified in this document, the
interconnection shall comply with all city ordinances and resolutions,and latest
IEEE 1547, IEEE Standard Conformance Test Procedures for Equipment
Interconnecting Distributed Resources with Electric Power Systems.
(e) Testing. Prior to initial energization of the interconnection, an inspection and
tests will be performed by both the interconnecting customer and city personnel.
The purpose of the inspection and testing will be to determine if the generator
and related equipment of the interconnection meets the minimum requirements
described by IEEE 1547, IEEE 519, and UL 1741, Underwriter Laboratories
Inc., Standard for Inverters, Converters, and Interconnection System
Equipment for Use With Distributed Energy Resources. Based on the
inspection, the city may elect to accept the installation and energize the
interconnection. In the event that discrepancies are noted between the certified
equipment and drawings previously provided to the city and the customer's
system inspected by the city,retesting may be required. The customer shall be
solely responsible for all costs associated with any retesting.
(1) City inspection and customer maintenance records. The customer shall maintain
the interconnection in good working order. The interconnection(Le.,generator
and associated equipment)is subject to inspection and retesting by the city upon
reasonable notice each year after the unit is placed in service. The customer will
assume full responsibility for the routine maintenance of the interconnection
and associated protective devices. The customer shall maintain accurate
records of all maintenance activities performed. These records shall record the
date and time, the person(s) who performed the activities, and a brief
description of the work. These records shall be made available to the city for
inspection at all times upon reasonable notice to the customer. Failure to
comply may result in the disconnection of the equipment or additional testing as
outlined in subsection(e)above. The customer is solely responsible for all costs
associated with any inspections and testing required.
(g) Visible, lockable disconnect switch or electric break. An accessible, visible,
lockable disconnect switch or electric break, whichever is applicable, is to be
provided by the customer which is lockable in the open position only. This
switch must be appropriately labeled,when locked in the open position for any
of the following conditions, may be unlocked only by city personnel. The city
will lock the switch in the open position under the following circumstances:
(1) If it is necessary for the protection of line crew personnel when working
on de-energized circuits during a system emergency;
149
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 11 of 20
(2) If inspection of the interconnection reveals a hazardous condition or a
lack of proper maintenance;
(3) If the interconnection interferes with other customers,other utilities,or
with the operation of the city's distribution system;
(4) If the city determines that the interconnection has generated power from
a non-qualified alternative energy resource; or
(5) For general maintenance of the city's distribution system.
The city will provide at least five days'notice,unless the circumstances warrant
shorter notice, before locking the switch open for general maintenance as
provided in condition (v) above.
(h) Metering/billing. The customer shall install and maintain a kilowatt-hour meter,
or meters, at the interconnection,capable of registering the bi-directional flow
of electricity at the point of interconnection at a level of accuracy that meets all
applicable standards,regulations,statutes, and ordinances. The meter(s)may
measure such parameters as time of delivery, power factor, voltage, and such
411r other parameters as the city shall specify. The customer shall provide space for
metering equipment as specified by the city with the location of the meter(s)to
be approved by the city. The customer is solely responsible for all costs
associated with the purchase, installation, and maintenance of all equipment
required by the city in order to properly meter the interconnection.
(i) Nominal voltages and phasing. The generator nameplate voltage must be the
same as one of the nominal voltages supplied by the city. The nominal voltages
are 120/240 V single-phase, 120/208 V three-phase,and 277/480 V three-phase.
If the generator nameplate voltage is different from the city's nominal voltages,
the customer must supply a dedicated generator transformer that will provide
the required nominal voltage. The required transformer connection, unless
otherwise specified, is grounded wye-grounded wye.
(j) Fault current increase and upgrading equipment. In general, installation of a
new generator will increase the fault current level at the customer's electrical
facility. This may require upgrading some of the customer's equipment. The
customer will assume full responsibility of upgrading customer's own
equipment.
(k) Starting as induction motor. In general, induction generators start as motors;
also,synchronous generators may be designed to start as motors. The customer-
.. owned generator starting as a motor shall meet the motor starting requirements
150
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 12 of 20 'Nod
prescribed by the city. The city may require the customer to provide, at
customer's own expense, special or additional starting equipment.
(1) Generating facility grounding. There are additional safety concerns that shall be
addressed when considering circuit grounding of the interconnection
interconnected to the city's utility system. To ensure proper grounding of the
generating facility,the customer shall follow all applicable national,state, and
local codes regarding grounding for applicable generating installations.
(m) Synchronization. The interconnection must be synchronized with the city's
utility system at all times and the customer shall be responsible for the cost and
maintenance of all synchronization equipment.
(n) Automatic disconnection, manual reset and authorized reconnection. The
interconnection shall be designed to automatically disconnect and lockout when
the city's service is interrupted for any reason. The device shall have a manual
reset. Reconnection of the interconnection to the city's utility system shall be
done only on Hot-Bus/Hot-Line/Sync-Check.
Following verbal authorization by the electric manager or the electric manager's
designee, reclose of the interconnection breaker (or interrupting device) is
permitted.
(o) Single phasing protection. The customer is advised that a phase-unbalance
disturbance on the city's utility system can result in overheating of the
interconnection. A negative-sequence-type relay (current or voltage) could be
necessary to initiate tripping under phase-unbalance conditions and may also be
used to block closing of the automatic disconnecting device if the city's utility
system is single-phased.
(p) Generating facility protection. The customer is fully responsible for the
protection of the generator and all of its associated equipment. Protection
should be provided for the customer's own equipment failures,faults,and other
disturbances on the city's utility system.
(q) Fault Detection and Automatic Isolation. To prevent an interconnection from
supplying current to a fault on the city's utility system,the interconnection shall
be equipped to provide isolation from the city's utility system for any fault
occurring on the city's utility system. The automatic isolation shall be done
prior to the city's breaker(or recloser)reclosing and within a reasonable period
of time, typically less than two seconds (120 cycles). The customer is solely
responsible for all costs associated with the purchase, installation, and
maintenance of all equipment required by the city in order to properly isolate ftd
151
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 13 of 20
the interconnection from the city's utility system for any fault occurring on the
city system.
(r) Under/over voltage relay. To prevent any hazardous operating conditions, the
interconnection shall be isolated from the city's utility system for any under-
voltage(lower than 90 percent of nominal voltage)and over-voltage conditions
(higher than 110 percent of nominal voltage) within two seconds (120 cycles).
The customer is solely responsible for all costs associated with the purchase,
installation, and maintenance of all equipment required by the city in order to
properly isolate the interconnection from the city's utility system for any voltage
level described above.
(s) Under/over frequency relay. To prevent any hazardous operating conditions,the
interconnection shall be capable of disconnecting the customer's generation
source from the city's utility system for any over-frequency and under-
frequency conditions exceeding 60.5 Hz or below 59.5 Hz within 50 milliseconds
(6 cycles). The customer is solely responsible for all costs associated with the
purchase,installation,and maintenance of all equipment required by the city in
order to properly isolate the interconnection from the city's utility system for
Ittar any frequency deviation described above.
(t) Dedicated distribution transformer. To ensure reliable service to other city
customers and to minimize all possible problems for other city customers, the
interconnection shall be interconnected to the city utility system through a
dedicated-to-single-customer distribution individual transformer. This
requirement may be waived by the electric department through written
authorization when it deems it appropriate under the circumstances. Any cost
associated to achieve dedicated-to-single-customer service shall be the
customer's sole expense.
(u) Single-phase generating facility on three-phase distribution transformer. A
customer-owned single-phase generating facility 10KW or greater shall not be
allowed to be connected to a city three-phase distribution transformer.
(v) Surge protection. The customer is responsible for the protection of customer's
interconnection from transient surges initiated by lighting, switching,or other
system disturbances.
(w) Future modification or expansion. Any future modification or expansion of the
interconnection will require a separate review and approval by the city.
(x) Reservation of Rights. The city reserves the right to require additional
Noir interconnection requirements for interconnection of alternative power source
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CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 14 of 20
generating facilities in order to preserve the safety and integrity of the city's
utility system.
(y) Interruption of alternative power source energy deliveries. It is likely that the city
will require alternative power sources to be disconnected from the city's
electrical distribution system whenever the city is generating its own power.
The electric department shall have the right at any time,without liability to the
customer or any other person, to interrupt the alternative power source:
(1) When reasonably necessary, in order for the electric department to
construct, install, maintain, repair, replace, remove, investigate, or
inspect any equipment or any part of the electrical distribution system;
or
(2) If the electric department reasonably determines that interruption or
reduction of deliveries or power is necessary because of a system
emergency, a forced outage, Force Majeure, or other operational
considerations.
14.15.416. - Electricity Consumption Offset; Billing and Payments. P
(a) All energy a customer receives from the city is purchased by the customer at the
applicable rate found in the tariff. When a customer's interconnection delivers
energy to the city, the customer's credit is as documented in the tariff.
(b) If the city supplied more power than the customer during the monthly billing
period, the customer will be billed for the net electric consumption at the rate
established in the tariff. If the meter reading for power into the customer's
facility is higher than the meter reading for power out of the customer's facility,
the customer will be billed for the net electric consumption at the rate
established in the tariff.
(c) If the customer produced more power than the city supplied during the billing
period, the customer will receive a credit, provided the customer is in
compliance with this chapter and is current on amounts owed to the city. If the
meter reading for power out of the alternative power source is higher than the
meter reading for power into the alternative power source, the customer will
receive a credit equal to the difference between the two readings,in the manner
and at a rate as determined by the tariff.
(d) Following disconnection,the city will bill for amounts owed or pay the customer
for any net credit. The customer shall pay the reasonable costs of removal,
relocation,modification, or renovation of any facilities or equipment required veld
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CITY OF SEWARD,ALASKA
ORDINANCE 2014-003
Sir Page 15 of 20
for interconnection with,or disconnection from,the city's electrical distribution
system.
14.15.417. -Appeal Procedures.
(a) Appeal board.
(1) The Seward planning and zoning commission shall hear and decide
appeals of an applicant who is denied interconnection, or a customer
who is denied future modification or expansion of an alternative power
source. The commission shall not address engineering or technical
issues.
(2) The commission shall have the authority to hear and decide appeals
when it is alleged there is an error in any requirement, decision, or
determination made by an administrative official in the enforcement or
administration of section 14.15.415, the city's building code
requirements,and the city's zoning code requirements as they may relate
to an alternative power source.
(3) A party aggrieved by the decision of the commission may appeal such
decision to the city council sitting as a Board of Review.
(b) Time limitation. An appeal of a decision of the administrative official or the
Seward planning and zoning commission must be filed within ten days of the
action or determination being appealed. An appeal of a decision of the board of
review must be filed within 30 days of the action or determination being
appealed. Computation of the time period for filing an appeal shall commence
with the date on which the action or determination is mailed or delivered to the
parties involved. Any decision not appealed within these time limits shall
become final.
(c) Applications. The application for appeal shall be filed with the city clerk,except
that appeals to the superior court shall be filed with the appropriate court
officer with a copy to the city manager, shall be in writing, and shall contain,
but is not limited to, the following information:
(1) The name and address of the appellant;
(2) A description of the action or determination from which the appeal is
sought; and
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CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
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(3) The reason for the appeal which must show a grievance to the applicant.
The grounds for appeal shall be stated with specificity and include a
reference to the legal authority giving rise to the dispute.
(d) Filing fee. An application appealing actions and determinations of the
administrative official or the Seward planning and zoning commission shall be
accompanied by a filing fee as set by resolution of the council.
(e) Appeal notice and hearing.
(1) Upon receipt of a valid application appealing an action or determination
of the administrative official or the Seward planning and zoning
commission, the city clerk shall schedule an appeal hearing to be held
within 60 days. All parties to the action or determination being appealed
shall be provided with written notice not less than 15 days prior to the
appeal hearing. Notice of the appeal hearing shall also be published in
the manner provided for publishing notice of public hearings in section
15.01.040(a).
(2) The hearing shall be open to the public. The hearing body may recess to
a closed session to deliberate and prepare its fmdings of facts and
conclusions of law; provided that final action shall be voted upon in open
session.
(3) An appellant may file with the clerk a written statement summarizing
the facts and setting forth pertinent points and authorities in support of
the points contained in the notice of appeal if such statement is filed not
less than seven days prior to the date set for the commission's appeal
hearing. The administration and any interested party wishing to file a
written statement in rebuttal to the appeal may do so if such statement is
filed not less than two days prior to the appeal hearing date. Copies of
all memoranda, exhibits, correspondence, recommendations, analyses,
maps, drawings, and other documents or exhibits must be submitted
with, or within the time frame for, filing a written statement.
(4) Parties to an appeal before the commission may present witnesses and
testimony, as well as exhibits that have been filed in advance with the
clerk.
(5) An appeal hearing conducted by the board of review shall be on the
basis of the record established before the commission and the record on
appeal. The board of review may allow for oral presentations by the
Nvol
parties. A time limit may be established for such presentations. No new
155
CITY OF SEWARD,ALASKA
ORDINANCE 2014-003
Page 17 of 20
evidence shall be received or considered by the board. Appeals resulting
from new evidence or changed circumstances shall not be heard by the
board of review,but shall be remanded forthwith by the city clerk to the
commission, which shall determine whether to rehear the matter or
remand to the administration.
(6) A record of appeal shall be prepared by the city clerk, shall be made
available for public inspection in the clerk's office, and provided to the
board of review not less than five days prior to the hearing, and shall
consist of the following:
(i) A verbatim transcript of the prior commission proceedings from
which the appeal has been taken,if those proceedings were taped
or otherwise recorded, or if the proceedings were not recorded,
copies of any approved minutes, summaries, or other records of
the proceedings;
(ii) Copies of all memoranda, exhibits, correspondence,
recommendations, analyses, maps, drawings, and other
Sr documents or exhibits submitted prior to the decision from which
the appeal is taken;
(iii) A copy of all prior written actions,determinations,and decisions,
including findings and conclusions;
(iv) A list of the names and addresses of all persons appearing as
witnesses at prior hearings; and
(v) Any written statements filed pursuant to subsection (e)(3).
(f) Written findings and conclusions.
(1) Within 60 days following an appeal hearing,the body hearing the appeal
shall issue its decision in the form of written findings of fact and
conclusions of law.
(2) The findings of fact and conclusions of law shall reference specific
evidence in the record and the controlling sections of this code. The
decision may affirm, modify, vacate, set aside, or reverse any decision
brought before it for review, and may remand the case and direct the
entry of such appropriate order, or require further proceedings to be
had as may be just under the circumstances.
r1`.►
156
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
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(3) Upon express vote, the body hearing the appeal may adopt as its
statement of fmdings and conclusions those fmdings and conclusions
officially adopted by the body below from which the appeal was taken.
(4) The fmdings of fact and conclusions of law shall be signed by the
presiding officer and filed with the clerk,who shall promptly mail a copy
to the appellant.
14.15.420.-Procedures and Application Process for Responding to Inquiries From a Customer
for an Alternative Power Source Greater Than 25KW.
(a) A request for interconnection of an alternative power source with a nameplate
capacity of more than 25 KW may be subject to power sales agreements entered
into by the city. The electric department shall notify the customer regarding
what information must be provided to enable the city to determine what
additional agreement terms and conditions are appropriate given the specific
circumstances of the proposed alternative power source. Such information may
include the following:
(1) Detailed description of the alternative power source; ,, i
(2) Precise location of the alternative power source;
(3) Nameplate electric generating capacity,net electric energy output, and
plant factor of the alternative power source;
(4) Minimum and maximum availability of firm capacity and/or energy
from the alternative power source during daily and seasonal peak
periods;
(5) Projected date on which deliveries of capacity and/or energy would
commence;
(6) Plans for alternative power source construction and financing, and the
acquisition of all necessary property rights,permits,authorizations,and
fuel contracts;
(7) Expected and demonstrated annual and seasonal reliability of the
alternative power source;
(8) Periods of scheduled maintenance and outages;
(9) Plans for dispatch ability of the alternative power source;
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CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
Page 19 of 20
%or
(10) If applicable, plans for acquiring access to adequate firm transmission
services and the terms and conditions of such access; and
(11) Any other information to assist the city in evaluating the circumstances
and determining appropriate terms and conditions.
(b) After the customer has satisfied all requirements provided for in subsection(a)
above, and following any approval that may be required by an entity that has
entered into a power sales agreement with the city,a power purchase agreement
is subject to approval by city council resolution.
14.15.41530. - Fossil Fuel Standby Generation.
The city will not permit the interconnection and operation of fossil fuel standby generation
facilities, such as diesel or gasoline engine drive standby generators,with its integrated distribution
system under any circumstances. Diesel or gasoline driven standby generators shall be connected to
the customer's load only through a double-throw switch that will prevent parallel operation with the
city's distribution system electrical distribution system. When using on-site fossil fuel
generation,the alternative power source must be disconnected from the electrical distribution
system. The customer shall provide any equipment necessary to disconnect the alternative
power source.
14.15.42035. - Customer Liability.
(a) Accidents. The customer shall be solely responsible for all accidents or injuries to
persons or property caused by the operation of the customer's equipment, or by any
failure of the customer to maintain his equipment in a satisfactory and/or safe
operating condition,and shall indemnify,defend,and save harmless the city from any
and all claims, suits, losses, or damages for injuries to persons or property, of
whatsoever kind or nature, arising directly or indirectly out of the operation of such
equipment or by the failure of the customer to maintain its equipment in satisfactory
and/or safe operating condition.
(b) Digging permits or utility locate requests. The customer is solely responsible for the
safety and security of city equipment on the customer's property whether in or out of
a utility easement. The customer shall complete a digging permit or utility locate
request prior to any digging, drilling, driving into the ground, or any subterranean
disturbance. If "locate required" is indicated on the form, the customer shall not
disturb the ground until all indicated locates are complete. The customer or his
contractor shall not use mechanized equipment within two feet of any located utility.
Failure to follow this procedure will make the customer liable to a$500.00 fine plus
any cost to repair the facility. Digging permits and utility locates are available free of
charge upon request and will be done expeditiously.
158
CITY OF SEWARD, ALASKA
ORDINANCE 2014-003
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Section 3,. This ordinance shall take effect ten(10) days following its enactment.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
12th day of May, 2014.
THE CITY OF SEWARD,ALASKA
Jean Bardarson,Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
`46000
159
Council Agenda Statement
AOf Sett,
Meeting Date: May 12, 2014
4 •.:\
To: Seward City Council wg4iRg
41CA-0,'
From: John Foutz through Jim Hunt
Agenda Item: Ordinance Amending Title 14 of the Seward City Code to Provide for
Interconnection of Small Renewable Energy Sources to the City's Electrical
Distribution System
BACKGROUND&JUSTIFICATION: The ordinance presented at this meeting would allow for
small alternative renewable energy facilities to safely connect to the City's electrical system. This
ordinance is designed to meet several goals.
The ordinance includes safeguards to prevent the connection of small renewable energy sources from
damaging the electrical system and the customer's equipment or negative effects to other electric
customers.
The ordinance limits the interconnection to small power sources with nameplate capacity of 25kW
or less and sets forth an application procedure to ensure that the customer's needs are met,as well as
the needs of the City and the City's other electrical customers.
An appeal procedure is allowed, consistent with the appeal procedures in the Seward Zoning Code.
The ordinance authorizes the Seward Planning&Zoning Commission to hear and decide appeals of
an application which is denied interconnection. The Seward Planning&Zoning Commission is also
authorized to hear appeals from applicants who may be denied based on zoning concerns. By having
the Seward Planning & Zoning Commission address all appeals, the intent is to streamline all
appeals for a potential applicant, providing better service to customers of the City.
The ordinance allows for a net credit and a rate for excess energy produced by the customer while
connected with the City's electrical system. The credit methodology will be determined by the City
Council in the electric tariff. One goal is to provide credit earned by the customer in a manner that
can be implemented by the Finance Department.
INTENT: The intent of this ordinance is to allow interconnection of small alternative energy
sources with the City's electrical system in a manner that will allow potential credit to the owner of
small generation systems, and will allow interconnection in a manner that will protect the safety of
all individuals and the integrity of the City's electrical system, as well as the interests of other
electrical customers.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan ( 1. 3, 3. 7. 3. 1, 3. 7. 3. 2): Continue to upgrade
1 and expand utilities to meet existing needs and encourage future
. X
development. Expand customer base within the Seward Electric Utility
area as a means to reduce energy costs and improve services.
160
0111111MI.
2 Strategic Plan:The mission of the City of Seward government it is to
. X
provide quality leadership and economic wellbeing of its citizens
3. Other(list): X
•.00/
FISCAL NOTE,: It is not possible to estimate the financial impact of this action due to a number of
unknown variables (e.g. i, the number of potential connections is unknown and it is impossible to
estimate how much power each will produce.) However, in 2013, the City provided $3,146.33 in
alternative energy credits
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No
RECOMMENDATION: City Council approve Ordinance 2014- 005 amending Title 14 to
allow interconnection of renewable energy sources of less than 25kW.
161
Sponsored by: Planning and Zoning Commission
Introduction Date: May 12, 2014
Public Hearing Date: May 27, 2014
•
Enactment Date: May 27, 2014
CITY OF SEWARD, ALASKA
ORDINANCE 2014-004
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE
§15.10.140.B SPECIFIC DEFINITIONS, §15.10.225 LAND USES
ALLOWED AND §15.10.225 LAND USES ALLOWED TABLE; TO
ALLOW MOBILE VENDORS AND ROVING VENDORS TO OPERATE
ON CITY OWNED PROPERTY (AS DESIGNATED) AND WITHIN
PUBLIC RIGHTS OF WAY
WHEREAS, members of the public have requested code changes to allow mobile
vendors and roving vendors on City parcels and within public Rights of Way; and
WHEREAS, at the February 24, 2014 work session Council directed the Planning and
Zoning Commission to hold public work sessions and develop new code provisions addressing
mobile and roving vendors on City parcels; and
WHEREAS, the Planning and Zoning Commission held public work sessions on March
Sol■ 11 and 18, 2014 to develop the new code provisions and on March 24, 2014 held a joint work
session with Council to present and review the proposed new code provisions; and
WHEREAS, at its April 15, 2014 special meeting, the Planning and Zoning Commission
held a public hearing and recommended City Council approval of the proposed City Code
amendments.
NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that:
Section 1. Portions of Seward City Code are hereby amended to read as follows:
(Deletions are Bold St-Fikethreughs; Additions are Bold Italic Underline)
15.10.140 Definitions (B)
B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter,
unless otherwise provided or the context otherwise requires:
* * *
98. Vending. The sales of food, services or merchandise.
162
ter..
CITY OF SEWARD, ALASKA
ORDINANCE 2014-004
Page 2 of 6
a. Hawking: is the loud or continuous audible solicitation of business by a vendor to the
general public.
b. Mobile Vending Cart: is a non-motorized structure or unit on wheels that is easily
moved and used for vending.
c. Mobile Vendor: a person or business that sells food or permitted types of goods from
City-approved locations using(i) a licensed vehicle or cart capable of movement; or (ii)
a licensed trailer pulled behind a motor vehicle.
d. Pre-Packaged food: ready-to-eat food that is cooked, wrapped, packaged, processed, or
portioned for service, sale or distribution.
e. Roving Vendor: a person who offers only pre-packaged food items to the public, with
or without the use of a licensed motor vehicle, from no fixed location on public
property, only on rights of way within designated zoning districts, excluding Fourth
Avenue between Port Avenue and Van Buren Street, and also excluding Fourth and
Fifth Avenues between Jefferson Street and Railway Avenue.
£ Transient merchant Any person, partnership, firm or corporation, whether a resident of
the City or not, who engages in a temporary business, within a period not exceeding 150
consecutive days in a calendar year, of selling and delivering goods and/or services,
wares and merchandise for profit or nonprofit within the City by operating en-a-clsov-te-
. . . , ' ; . . . • ; . . . . • •; . from a
location out-of-doors or in quarters that are easily moveable, such as a temporary leased
area or space, or motor vehicle, trailer or tent. Includes peddlers, solicitors, itinerant
merchants and vendors. Does not include vehicles for hire. Transient merchants operate
exclusively from private property. (note: Transient merchant definition relocated.
Previously 15.10.140. B. 95.)
15.10.225 -Land Uses Allowed Table
(Deletions are Bold StFil oughs; Additions are Bold Italic Underline)
163
CITY OF SEWARD,ALASKA
ORDINANCE 2014-004
Page 3 of 6
Districts: Principally Residential Principally Principally
Commercial Public
Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P
I 1
Mobile Vendor P P P P P P P P PP P
Roving Vendor P P P P P P P P PP P
15.10.225 Land uses allowed.
(a) (b) * * *
Note: (c) Transient Merchants . . . becomes (e) and
Livestock becomes (f)
(c) Mobile Vendor as defined in section 15.10.140 B 98 Vending (C) of this chapter and
which are allowed in accordance with table .61 5.10.225 are subject to the following
development requirements:
1. An application for a mobile vendor must be submitted on a form provided by the,
City Clerk's office yearly with colored pictures of at least two different angles of the
unit the applicant is applying to license and a description that includes the length and
width, when in its widest configuration.
2. Mobile vendors may operate at designated locations, by permit. Policies and
Procedures shall be set by resolution of the City Council.
3. The Seward Police Department has the right to close down a mobile vendor if
vending is causing or contributing to an imminent public safety hazard.
4. No mobile vending shall take place on_public property between the hours of
10:00 p.m. and 6:00 a.m. unless otherwise posted.
5. A mobile vendor may only offer, for sale, the following types of goods and
services on public property: Food and/or non-alcoholic beverages; Handicrafts,
artwork, jewelry or similar goods or Firewood.
6. Licenses: In addition to complying with City of Seward ordinances related to
mobile vendors and applicable regulations, the owner and operator is responsible for
applying for and obtaining all other necessary licenses and satisfying the standards
of the City permit conditions.
7. Mobile vendor vehicles or carts may not remain in place overnight or in City
parking lots.
164
CITY OF SEWARD, ALASKA
ORDINANCE 2014-004
Page 4 of 6
8. Mobile vendor vehicles must be self-contained when operating, except for the Ned
required trash and or recycling receptacles, which shall be in a safe location and in
no event shall impede the free movement of automobiles or pedestrians, within their
permitted lot or space.
9. Mobile vendors must serve to the sidewalk or esplanade next to a sidewalk when
parked in spaces parallel to City sidewalks.
10. It shall be unlawful for a vendor to attract customers by hawking or physically,
accosting persons.
11. Each mobile vendor vehicle shall provide the City of Seward with a certificate
of insurance to cover public liability in the standard amount set by City policy.
Insurance policies shall stipulate that the insurer will give written notice to the City
at least 30 days prior to cancellation or other termination in coverage. Prior to
acceptance of their permit, vendors shall execute an instrument under the terms of
which the permittee shall agree to indemnify, defend, and hold harmless the City of
Seward from any and all claims for injury or damage to persons or property suffered
in connection with vendor activities.
12. Any mobile vendor base station shall be properly licensed.
13. Mobile vendors shall comply with all City code, policy and procedures. Failure
to adhere to the regulations for mobile vendors is cause for revocation or suspension
of the license/permit by the City Clerk.
14. Mobile vendors shall display required permits and City business license in a
prominent location on the Mobile Vending Cart or vehicle from which the business is
conducted pursuant to the permit, so it is protected from the weather and easily
visible to the public.
(d) Roving Vendor as defined in section 15.10.140 B 98 (e) of this chapter and which are
allowed in accordance with table 15.10.225 are subject to the following development
requirements:
1. Roving vendors shall not vend on any public street where the legal speed limit
exceeds 25 miles per hour, or on Fourth Avenue between Port Avenue and Van
Buren Street, and also excluding that portion of Fourth and Fifth Avenues between
Jefferson Street and Railway Avenue.
2. Roving vendors shall not vend on any public street before 6:00 a.m. or after
10:00 p.m., unless otherwise posted.
3. Roving vendors shall vend only when the vehicle is lawfully parked and
completely stopped.
165
CITY OF SEWARD,ALASKA
ORDINANCE 2014=004
Page 5 of 6
4. Roving vendors shall vend on public streets from the side of the vehicle away
from moving traffic, and within one foot of the curb or edge of the street
5. Roving vendors shall not vend or permit the vehicle to stand in one place in any
public place or street for more than (30) minutes or in front of any premises for any
time if the owner or lessee objects.
6. An application for a roving vendor vehicle must be submitted on a form
provided by the City Clerk's office yearly with colored pictures of at least two
different angles of the unit the applicant is applying to license and a description that
includes the length and width, when in its widest configuration.
7. The Seward Police Department has the right to close down or request a roving
vendor to relocate if vending is causing or contributing to an imminent public safety
hazard.
8. In addition to complying with City ordinances and permit conditions related to
roving vendors, the owner and operator is responsible for applying for and obtaining
all other necessary licenses required for the service of food. The roving vendor
vehicle shall be in compliance with the motor vehicle laws of the State of Alaska, and
the roving vendor vehicle owner is responsible for complying and verifying that a
specific location or route does not violate City zoning code.
9. Roving vendors shall comply with all traffic rules.
10. Each roving vendor vehicle must provide the City of Seward with a certificate
of insurance to cover public liability in the standard amount set by City policy.
Insurance policies shall stipulate that the insurer will give written notice to the City
at least 30 days prior to cancellation or other termination in coverage. Prior to
acceptance of their permit, vendors shall execute an instrument under the terms of
which the permittee shall agree to indemnify,defend, and hold harmless the City of
Seward from any and all claims for injury or damage to persons or property suffered
in connection with vendor activities.
11. Any roving vendor base station must be properly licensed.
12. Roving vendors shall comply with City code, policy and procedures. Policies
and procedures shall be set by resolution of the City Council. Failure to adhere to the
regulations for roving vendors is cause for revocation or suspension of license /
permit by the City Clerk
13. Roving vendors shall display required permits and City business license in a
prominent location on the Mobile Vending Cart or vehicle from which the business is
conducted pursuant to the permit, so it is protected from the weather and easily
visible to the public.
166
CITY OF SEWARD,ALASKA
ORDINANCE 2014-004
Page 6 of 6
ftd
Section 2. This ordinance shall take effect ten(10) days following enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this
day of 2014.
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
•..00/
Johanna Kinney, CMC
City Clerk
(City Seal)
*NS
167
Agenda Statement
e,
/ of ses,,
. 11119,641
Meeting Date: Introduction: May 12, 2014 Alp!,A ra,
'‘1111 "' '447,■\ - -
Public Hearing: May 27, 2014
414.-A-sok
To: City Council
Through: Jim Hunt, City Manager
Ron Long,Assistant City Manager
From: Donna Glenz, Planner
Agenda Item: Amending Portions of Seward City Code(SSC) §15.10.140 Definitions and
§15.10.225 Land Uses Allowed;and§15.10.225 Land Uses Allowed Table to
allow mobile and roving vendors to operate on city owned property (as
designated) and within public Rights of Way.
BACKGROUND & JUSTIFICATION:
Members of the public have requested a code change to allow mobile vendors and roving vendors on
City parcels and within public Rights of Way. On February 24,2014 Council held work session and
directed Planning and Zoning to hold public work sessions and develop new code provisions
addressing mobile and roving vendors on City parcels(as designated)and within certain public rights
of way. Council requested the new code provisions be ready for the 2014 summer season if possible.
Slor
The Planning and Zoning Commission held several public work sessions on mobile vendors and
roving vendors,specifically addressing new code provisions for the Seward City Code. Members of
the public attended the work session and provided input in drafting the provisions. On March 25,
2014 the City Council and the Planning and Zoning Commission held a joint work session to review
and amend the draft code provisions.
On April 15, 2014 the Planning and Zoning Commission held a special meeting and approved
Resolution 2014-06 recommending Council approve the attached Ordinance enacting new code
provisions for Mobile and Roving Vendors.
INTENT:
Provide new code provisions for Mobile and Roving Vendors as designated City lands and within
public rights of way.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: (2020): 3.2 Land Use
3.7.3 Continue to improve the quality and efficiency of city
1. X
governmental services.
• Continue to revise and update the Seward City Code
Strategic Plan (1999): Goals and Objectives
2. * Adjust local development regulations, where appropriate, to x
encourage development that is consistent with our economic base
vision
168
As per City Code§15.01.040 Public Hearings;the public notice requirements were met. At the time
of publishing this agenda, no further public inquiry had been received.
FISCAL NOTE: There is no financial burden to the City for this amendment.
Approved by Finance Department: �� p
ATTORNEY REVIEW: Yes: X No
RECOMMENDATION:
Council introduce Ordinance 2014-004, on May 12, 2014 and conduct a public hearing and enact
Ordinance 2014-004 on May 27, 2014 amending Portions of Seward City Code §15.10.140
Definitions; §15.10.225 Land Uses Allowed; and §15.10.225 Land Uses Allowed Table providing
new code provisions for mobile and roving vendors.
Ned
Noid
169
Sponsored by: Hunt and Kinney
CITY OF SEWARD,ALASKA
RESOLUTION 2014-045
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A DONATION OF $2,000 TO THE
RESURRECTION BAY HISTORICAL SOCIETY TO HOST THE
MUSEUMS ALASKA / ALASKA HISTORICAL SOCIETY JOINT
ANNUAL CONFERENCE OCTOBER 1-4, 2014 TO BE HELD IN
SEWARD, ALASKA
WHEREAS, on October 1-4, 2014, the Alaska Historical Society and Museums Alaska,
the statewide museums association, will hold their annual joint conference in Seward; and
WHEREAS, this is the first time Seward has hosted the meeting, and Resurrection Bay
Historical Society members are working with Museums Alaska and Alaska Historical Society to
host the event; and
WHEREAS, the conference theme for the Alaska Historical Society is Gateways: Past,
Present and Future and will focus attention on the area's vibrant past, including the deep history
of Alaska Native people, Russian shipbuilding and fur trading, and Seward's role as a port and
transportation hub in the American era; and
WHEREAS, the conference theme for Museums Alaska is Milestones: Interpreting
Events That Change The Course Of Communities and will explore the opportunities and
challenges museums face in commemorating community milestones ranging from the tragic to
the triumphant; and
WHEREAS, it is estimated the conference will bring about 200 visitors to Seward; and
WHEREAS, at the March 24, 2014 council meeting, the City Council discussed and
directed to have a resolution come forward to authorize a donation to the Resurrection Bay
Historical Society to help with hosting the event; and
WHEREAS, it was requested to have a $2,000 donation come from the City Council and
City Manager budgets.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The Seward City Council and the City Manager are authorized to make a
donation of$2,000 to the Resurrection Bay Historical Society to help with hosting efforts of their
2014 Joint Annual Conference in Seward, Alaska.
Section 2. $1,000 is authorized from Mayor/Council Promotions account number 101-
170
CITY OF SEWARD,ALASKA
RESOLUTION 2014-045
1110-5730 and $1,000 is authorized from the City Manager's Contingency Fund account number
101-1120-5690 for this donation.
Section 3. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12th day of
May, 2014.
THE CITY OF SEWARD,ALASKA
Jean Bardarson,Mayor
AYES: Ned
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
171
Agenda Statement
Meeting Date: May 12, 2014
4 Of Sti%7
From Johanna Kinney, City Clerk
%e;Rgr',4
Agenda Item: Authorizing a donation of $2,000 to the
Resurrection Bay Historical Society to host the
Museums Alaska / Alaska Historical Society
Joint Annual Conference October 1-4, 2014, held
in Seward, Alaska.
BACKGROUND &JUSTIFICATION:
At the March 24, 2014 City Council meeting, council directed a resolution come forward to
donate $2,000 towards hosting the 2014 Alaska Historical Society / Museums Alaska Joint
Annual Conference. This is the first time this conference has been held in Seward and is
expected to bring in approximately 200 visitors. Staff has been meeting with conference hosts
Resurrection Bay Historical Society to assist with logistics during planning for the event.
During this meeting, the City Council and City Manager agreed to bring forward a resolution that
would split the donation between their two budgets.
INTENT:
The intent of this resolution is to give formal authorization for a check to be written to the
Resurrection Bay Historical Society in the amount of$2,000, split between Mayor/Council and
the City Manager's budgets, to assist with hosting the 2014 Museums Alaska/ Alaska Historical
Society Joint Annual Conference in October.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (document source here): 3.1.1 Economic Sectors
and Location: Recreation and tourism generate a significant part of
Seward's economy....... Support services vary to meet the needs of
1.
different visitors......These visitors help support local lodging,
restaurants, gift stores, groceries, fishing supply outlets, and the
ASLC......
Strategic Plan (document source here): Page 12—Recreation and
2. Leisure—provide diverse, year-round, indoor and outdoor recreational,
educational, and cultural opportunities and facilities for residents and
visitors
4%111.,
172
3. Other (list): x
FISCAL NOTE: $1,000 would be expended from the Mayor/Council Promotions account #:
101-1110-5730 and $1,000 from the City Manger's contingency account #: 101-1120-5690 to
the Resurrection Bay Historical Society.
Approved by Finance Department: �460=42141,
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2014-045, donating $2,000 to the Resurrection Bay Historical
Society to host the Museums Alaska / Alaska Historical Society Joint Annual Conference
October 1-4, 2014, held in Seward, Alaska.
173
Resurrection Bay Historical Society Page 1 of 3
Resurrection Bay Historical Society
Museums Alaska I Alaska Historical Society
Conference
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2014 Joint Annual Conter,,n -""
Oct, 1 -4 in .Seviird, Alaska
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Museums Alaska [http://museumsalaska.org]
Conference Theme - "Milestones: Interpreting events that change the course of
communities." Museums collect objects, record accounts and share stories. This
year's conference will explore the opportunities and challenges museums face in
commemorating community milestones ranging from the tragic to the triumphant.
Keynote Speaker - Dr.Jan Ramirez is chief curator and vice president of Collections
for the National September 11 Memorial and Museum in New York City. At the New-
York Historical Society she played a major role in developing its History Responds
initiative, a series of exhibitions, public programs, and collection acquisition efforts
focused on the 9/11 attacks in their broad historical context. She has held curatorial,
interpretation, collections development and senior administrative posts at museums
in Boston and New York.
174
httl)://www.resbayhistorical.org/ 4/30/2014
Resurrection Bay Historical Society I rage z of i
Alaska Historical Society
[http://www.al askahistoricalsociety.org/index.cfm]
Conference Theme - "Gateways: Past, Present and Future."Resurrection Bay has
been a gateway for travel and trade since prehistoric times when Alaska Natives
along the coast traveled by boat and on trails to the Interior. Russian fur traders
built a shipyard here. Seward got its start as an ice-free steamship port that linked
people and freight traveling by railroad and the original Iditarod trail.
Keynote Speaker - Dr. Paul Hirt is a historian specializing in the American West,
global environmental history, environmental policy and sustainability studies at
Arizona State University. His publications include a monograph on the history of
electric power in the U.S. Northwest and British Columbia (The Wired Northwest); a
history of national forest management since WWII (A Conspiracy of Optimism); and
two collections of essays on Northwest history (Terra Pacifica and Northwest Lands,
Northwest Peoples).
2014 Schedule Preview
Pre-Conference
Wednesday, Oct. 1 Pre-conference workshops on exhibits and grants submittal.
Conference
Wednesday, Oct. 1 Evening reception at the Alaska SeaLife Center followed by a
1-hour readers' theater by Doug Capra about artist Rockwell Kent.
Thursday, Oct. 2 Conference sessions, lunch on your own at one of Seward's fine
restaurants, and evening reception at the Seward Community Library Museum
followed by a film screening of Uksuum Cauyai.
Friday, Oct. 3 Conference sessions, State of the State Lunch, and Awards Banquet.
Saturday, Oct. 4 Conference sessions until noon, then local tours. See below.
175 75
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Resurrection Bay Historical Society I rage 01
Post-Conference Tours
Seavey's IdidaRide sled dog ride and kennel tour
Tour of historic Seward led by historian Lee Poleske
Boat tour of Resurrection Bay featuring World War II history
More to come: Stay tuned for on-line conference registration and release of the full
conference schedule.
ilaska Historical Socktv MUSEUMS Resurrection Bay
ALASKA. Historical Society
*11 441/44' welcomes all
conference attendees!
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Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2014-046
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,APPROVING TEEN AND YOUTH CENTER DAY CAMP FEES
WHEREAS, the 2012/2013 Budget included an increase in estimated TYC revenues
associated with an increase in day camp fees. This fee increase resulted in an unexpected 50%
decrease in day camp participants in the summers of 2012 and 2013; and
WHEREAS, the City's original intent was twofold; a) to assist low-income and middle-
income families by offering a sliding fee discount; and b) to demonstrate the value of the
program through increased fees for other families; and
WHEREAS, the revised fee structure did reduce the burden on lower-income families
but also resulted in a significant decline, by more than half, in program participation; and
WHEREAS, the overall goal and mission of day camps is to provide Seward's youth
with a safe and supervised place to recreate, learn, grow and improve their physical, social, and
emotional health; and
WHEREAS, our goal is to increase program participation to reduce at-risk youth
behaviors and to provide more children with healthy recreational options.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD,ALASKA,that:
Section 1. TYC day camp fees are amended as follows: Earlybird Regular Day Camp:
$50 per week; Non-Earlybird Regular Day Camp fees $60 per week and $70 per week for
Regular Day Camp late payment. Earlybird Adventure Camp: $90 per week; Non-Earlybird
Adventure Camp fees $100 per week and $120 per week for Adventure Camp late payment.
Section 2. TYC Program Revenues budgets for 2014 and 2015 require no adjustment.
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
12th day of May, 2014.
177
Council Agenda Statement
Of Sett,
Meeting Date: May 12, 2014
4,
Through: City Manager Jim Hunt `41;irgis4
411.4-sv,
From: Karin Sturdy, Parks & Recreation Department Director
Agenda Item: Teen & Youth Center Day Camp Fees Roll-back
BACKGROUND & JUSTIFICATION:
The parks and recreation department provides children with healthy and safe summertime recreation
choices.We provide active recreation programs to engage minds,bodies and social connections for
the health of our children and community. We take pride in our camps and regret the loss of too
many families and too many children since our recent fee increases. Attached is documentation from
earlier discussions regarding Teen & Youth Center(TYC) day camp fees.
In 2012, to reduce program subsidies, the department recommended an increase in TYC day camp
fees. At the same time, we implemented a sliding fee scale for low-income and medium-income
families. During 2013 summer camps,only one family utilized the sliding fee scale,while between
two and six families each week were awarded various donor-provided scholarships. One family
received financial assistance from the State of Alaska. Unfortunately,as a result of the fee increases,
summer program participation dropped by just over one-half(see attached chart). The purpose of
this resolution is to restore fees to their 2011 levels, while maintaining the sliding fee scale to assist
low-income and medium-income families.
The parks and recreation department recommends a roll-back in fees, as follows:
Regular Day Camp (RDC)
Earlybird fee (paid three (3) weeks early) $50 per week
Regular fee (due six (6) business days prior to camp) $60
Late fee (any time after the deadline, as space allows) $70
Note: The current fee is $100 per week.
Adventure Camp (AC)
Earlybird (paid three (3) weeks early) $90 per week
Regular fee (due six (6)business days prior to camp) $100
Late fee (any time after the deadline, as space allows) $120
Note: The current fee is $150 per week.
INTENT:
Provide the community with quality affordable recreation programs for students during out-of-school
time by reducing the prices, with the goal of assisting as many families as possible.
%N.
178
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: 2.2 Community Values. Recreation, page 11 "We
1 value diverse, year-round, indoor and outdoor recreational X '
opportunities for residents and visitors of all ages and socioeconomic
backgrounds"
Strategic Plan: Vision Statement: "healthy, vibrant community with a strong,
diverse economy with quality business,educational and recreational
opportunities" (reiterated pg 12) Pg 8: "promote winter activities,"Pg 19:
2 Provide adequate funding for a financially sound city government. The City of X
Seward is a fiscally responsible entity which utilizes creative and responsible
funding alternatives. "Maintain and enhance medical and social services.
"We are a community that provides an integrated array of health care services
designed to protect and improve the quality of life for all citizens."
3. Other (list): Not listed in 1993 SPRD Master Plan X
FISCAL NOTE:
The impact of a reduction in fees is difficult to estimate because we do not know how many
additional families will return to the program,but given that we have lost approximately one-half of
the program participants, it is likely that a fee reduction could result in no overall reduction in
revenues. Approved by Finance Department: :
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Approve Resolution 2014-® reducing TYC day camp fees to previous levels.
179
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39, Page
CALL TO ORDER
The March 24,2014 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Police Lieutenant Louis Tiner led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and
Dale Butts Ristine Casagranda
Christy Terry Marianna Keil
David Squires Iris Darling
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
Nanci Richey, Administrative Assistant
14.1.
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING-None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Terry/Keil) Approval of Agenda and Consent Agenda
Keil added Recipients of the Seward Volunteer Fire Department's Annual Awards to Proclamations
and Awards.
Terry added Resolution 2014-026 to the consent agenda.
Terry added the Appointment of two applicants,Norma Shellgren and Devin Putney,to the Seward
Recreation Committee Applicants to the consent agenda.
Bardarson added Resolution 2014-028 to the consent agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2014-026, Approving Amendment#3 To The Employment Agreement With The
180
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39,Page
City Clerk And Appropriating Funds.
Resolution 2014-028,Authorizing The City Manager To Accept Legislative Grant#13-GO-014
From The State Of Alaska Department Of Commerce And Economic Development In The
Amount Of$10,000,000 For The Design And Development Of The Seward Marine Industrial
Center(SMIC) And Appropriating Funds.
Approval of the February 10, 2014 City Council Regular Meeting Minutes.
Council appointed Norma Shellgren and Devin Putney to the Seward Recreation Committee.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards
Recognizing Beverly Dunham on being inducted into the Alaska Women's Hall of
Fame
Choose Respect Proclamation
April is Child Abuse Prevention And Awareness Month
Marathon Wrestling Club Certificate of Appreciation
50th Anniversary of the 1964 Good Friday Earthquake
Recognizing the Recipients of the Seward Volunteer Fire Department's Annual
Awards
Chamber of Commerce Report, Cindy Clock explained the upcoming Kenai Peninsula
Tourism Dodge Ram Stay and Play Raffle.For each ticket sold,the Chamber received$25.00 of the
$50.00 sale.Mayor Navarre was proposing a borough wide 4%bed tax.The Industry Outlook Forum
would be held at the K.M. Rae Building called The Passage of Opportunity would be hosted by the
City of Seward, Kenai Peninsula Economic Development District, and the Kenai Chapter of
Alliance. Seward Harbormaster Mack Funk would attend Kodiak ComFish Alaska,Alaska's premier
commercial fishing trade show on April 17-19, 2014.
City Manager's Report,City Manager Jim Hunt stated that the following purchase order
between $10,000 and $50,000 had been approved by the City Manager since the last council
meeting: Quality Equipment Sales and Service, $20,984.31 for a flat bed and crane for the harbor
truck approved by council on February 10, 2014. This project was budgeted and approved for
$60,000.00. The truck was $28,500. The flat bed and crane was $20,984.31, leaving the project
$10,515.69 under budget.
In Public Works,Metco,Inc. started the Dairy Hill Drainage Mitigation Project on March 26,
2014. The 2012 Spruce Creek Flood damage paperwork was being finalized. Staff was working on
CRW Engineering Group,LLC's water tank design engineering contract for the North Seward Water
181
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39, Page
Storage Tank and Pumping Facility, a request for proposals (RFP) for sludge removal at Lowell
%or Point,FEMA flood damage repairs on Barwell, Phoenix and Dieckgraeff Roads,and an RFP for the
Lowell Canyon 400,000 gallon water storage tank refurbishment.Harmon Construction would begin
the Americans with Disabilities Act(ADA)sidewalk improvements in May. Hunt met with Alaska
Department of Environmental Conservation (ADEC) Commissioner Larry Hartig to discuss the
protocol for wastewater lagoon maintenance at SMIC and Lowell Point.
Seward Parks and Recreation declared that 2014 was to be proclaimed and celebrated as the
"Year of the Cemetery." Parks and Recreation was seeking volunteers to work on various projects
including documentation,rebuilding headstones, and specific site clean-up and repairs. On Friday,
March 28, 2014, the Seward Community Library Museum would be hosting New York Times
bestselling author,Michael Burlingame,who published the book"Seward: Lincoln's Indispensable
Man". The city was hosting the Museums Alaska/Alaska Historical Society Conference in October,
2014. Council and administration agreed to donate city funds of$2,000.00 to be split by the City
Council and the City Manager's Depailments to the conference.
Squires asked how the planning was going for the statewide earthquake drill being held on
March 27, 2014. Hunt said the city had scaled back their role in the exercise due to time restraints
and poor planning.Fire Chief Eddie Athey said the actual sirens would go off for three minutes that
morning to test the system with a live exercise. He encouraged the public to review their own plans
of action for their families during an emergency and to create a plan if they didn't already have one.
%We For the Mayor's Report,Bardarson reported she met with Lieutenant GovernorTreadwell and
had discussed SMIC, the sewage lagoons,the airport, and the cost of energy in Seward.
Other Reports and Presentations -None
PUBLIC HEARINGS
Resolutions Requiring Public Hearing
Resolution 2014-025, Authorizing The City Manager To Purchase Tract C-6, Gateway
Subdivision Addition No. 2, Document Number 001554-0 In The Records Of The Seward
Recording District,Third Judicial District,State Of Alaska For$98,010,And Appropriating
Funds.
Motion (Terry/Butts) Approve Resolution 2014-025
Public Works Director W.C.Casey stated this property purchase was one of the final pieces
of the water tank project that had been planned for seven years. He hoped to pass this resolution so
that the design was finished and the water tank could be built. Hunt added that currently the water
was pumped uphill.
Notice of the public hearing being posted and published as required by law was noted and the public
‘01.. hearing was opened. No one appeared to address the Council and the public hearing was closed.
Terry confirmed with the clerk that the laydown before them was for the contract and the resolution.
182
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39, Page
Motion to Amend (Terry/Butts) Approve Laydown Changes of the Contract
Motion to Amend Passed Unanimous
Casey stated the city took advantage of the American Reinvestment and Recovery Act and
had spent$400,000 improving the distribution line that would lead up to this tank, and part of the
infrastructure was already there.
Terry stated that administration did a great job of negotiating and saving$60,000 to$80,000
annually for operating costs.
Main Motion Passed Unanimous
UNFINISHED BUSINESS -None
NEW BUSINESS
Resolution 2014-027, Waiving Competitive Procurement Requirements And Authorizing
Purchase Of A New International Digger/Derrick Truck In An Amount Not To Exceed
$296,935 Including Contingency, And Appropriating Funds.
Motion (Terry/Keil) Approve Resolution 2014-027
Electric Utility Manager John Foutz stated this was to replace their used Digger truck
purchased back in 2005. The Electric Department was unable to find a previously used truck this
time.Foutz and staff also tried to find companies for the bid process but only one company made the
Digger Derrick truck on the West Coast and that was Altec Industries.
In response to Casagranda,Foutz stated that this was an International truck and Altec had a
maintenance shop in Anchorage that would work on it whenever the Electric Department's
maintenance crew was unable to perform the maintenance themselves. The truck would be stored
inside the warehouse which would help the city avoid problems with the electrical elements.Foutz
also stated that if this resolution passed,Altec could then begin building the Digger Derrick,and the
old truck would still be used for the 2014 season.
Bardarson asked why the resolution price was higher than the agenda statement and Foutz
replied that the figure listed in the resolution was correct, but there were recommended optional
items added in.
Motion Passed Unanimous
Resolution 2014-029,Authorizing The City Manager To Accept Legislative Grant#14-DC-133
From The State Of Alaska Department Of Commerce And Economic Development In The
Amount Of$10,000,000 For The Design And Development Of The Seward Marine Industrial
Center(SMIC) And Appropriating Funds.
183
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39,Page
Motion (Terry/Keil) Approve Resolution 2014-029
411■Ipr
Hunt recommended that council accept this grant from the State Of Alaska Department Of
Commerce And Economic Development.
Motion Passed Unanimous
Other New Business Items
Schedule a Work Session to discuss the Air Force Recreation Camp Property on April 21,
2014 at 6:00 p.m.
Schedule a Work Session to meet with the Friends of the Jesse Lee Home on April 14,2014 at
6:00 p.m. Council requested a date change for the work session to May 1, 2014 at 5:30 p.m. and
directed the clerk confirm that date and time with the Friends of the Jesse Lee Home.
INFORMATIONAL ITEMS AND REPORTS
Chill, It's a Drill! and The Great Alaska Shake Out March 27, 2014.
Seward's Day Proclamation.
Mayor's Day of Recognition for National Service.
Nifty
December 2013 Financial Report for Providence Seward Medical Center.
Letter from City of Obihiro Mayor Yonezawa RE: 2013-2014 Mural Exchange.
COUNCIL COMMENTS
Keil thanked former City Council Member Doreen Lorenz for promoting Seward as the spot
to film the movie"Sugar Mountain"and for advocating for Seward. Keil had spoken to former City
Council Member Bob Valdatta who advised that council should be careful about including the
"contingency" fund wording in future resolutions.
Terry said Alaska's Institute of Technology (AVTEC) opened a Transportation Worker
Identification Credential (TWIC) office. She wanted the city to honor Fred Esposito's retirement
from the Alaska Vocational Technical Center (AVTEC) at the next council meeting. Terry
recommended keeping the community updated on the progress of the SMIC development project by
newspaper, meetings, or in the City Manager's report.
Butts thanked the Planning and Zoning Commission and the Community Development
Department for their help on the work session discussion on mobile vendors and transient merchants
held tonight. He reminded everyone that March 29, 2014 was a fundraiser for the Animal Shelter
called the Cause For Paws Fur Ball. Butts was glad there would be a work session with Friends of
the Jesse Lee Home.
184
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39,Page
Squires discussed the emergency training event on March 27,2014 and what all the different
entities would be doing. He hoped for a statewide recovery community exercise this year.
Hunt agreed something should be done soon for emergency events, especially since there
were so many layers between government, employees, and council that would be involved in these
exercises.
Squires said the city would be looking to residents for help with evacuations.
Darling reiterated the importance of making an emergency response plan for all businesses
and families. She also reminded everyone about the Cause for Paws Fur Ball at Chinooks would be
held on March 29, 2014.
Bardarson commented on what a great fundraiser the Fur Ball would be, and also
encouraged everyone to think about what they would do during an emergency event.
Keil agreed it was important to have an emergency plan.
Butts thought Seward was prepared because the Seward Volunteer Fire Department and the
Bear Creek Volunteer Fire Department members had participated in a lot of classes. He
congratulated the volunteers who had taken these extensive training classes.
Hunt stated that much of the recognition for being named"Tsunami Ready"in Seward went
to Retired Fire Chief Squires and the community should be aware of this.
CITIZEN COMMENTS
Sue McClure stated that she was disappointed that Seward's involvement in the Tsunami
Warning Exercise had been scaled back. She would like to make a correction from the last meeting:
it was incorrectly stated that the Historic Preservation Commission was having a conference in
Seward when it was actually the State of Alaska Historical Society and Historical Museum.McClure
encouraged the community to attend the 1964 Earthquake 50th Anniversary Presentation at the
Seward Museum on March 27, 2014.
Sharon Montagnino,Executive Interim Director of the Seward Community Health Center
(SCHC), thanked council for their support prior to and while she was the director. She said the
SCHC launch was successful and a growing numbers of patients were visiting the clinic.The SCHC
was not operating with a full staff but were working very hard to find a permanent doctor and add
more medical workers. Montagnino would be working with the new director prior to her upcoming
departure.
Joanna Robinson stated she came to Seward due to infestation problems at her Anchorage
residence. Since she came to Seward,she had been assaulted and had been mistreated by hospital and
police staff. Robinson felt these issues were not being acknowledged.
By unanimous consent, council suspended the rules to allow Robinson two more minutes to
speak.
185
City of Seward,Alaska City Council Minutes
March 24, 2014 Volume 39, Page
Robinson continued with her comments.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Terry announced the new Director for the Seward Community Health Center was Patrick
Linton.
ADJOURNMENT
The meeting was adjourned at 8:46 p.m.
Johanna Kinney, CMC Jean Bardarson
City Clerk Mayor
(City Seal)
NkIW
186
400111111111■
MEMORANDUM
Date: May 12, 2014
.4* *V41k*tZ1)
To Mayor and City Council
From: Johanna Kinney, City Clerk 4140
44.4516,Pr
RE: DRAFT Mobile and Roving Vendor Policy
Honorable Mayor and City Council Members,
Attached is a draft of a mobile and roving vendor policy, to be adopted in concurrence with the
enactment of Ordinance 2014-004 which allow for mobile and roving vending on city property,
with stipulations. Those stipulations and criteria are intended to be further clarified with the
approval of this proposed policy. When reviewing this draft policy, I ask that you consider the
following questions and instances:
• Do you want mobile and roving vendors to be year round?
• For mobile vending, do you want to allow only one location per vendor or multiple
locations per vendor?
• What type of fee structure do you want for mobile vending? Examples:
1. A flat permit fee,
2. A filing fee upon consideration for a permit+ a permit fee prior to issuance, or
3. A filing fee upon consideration for a permit + a permit fee prior to issuance + some
kind of monthly rental/lease fees (City and Borough of Juneau does this and I think is
more typical of a fee structure). If council wants to implement this third option, they
may also want to consider allowing vendors to apply for certain timeframes
monthly increments) throughout the year, which is how the City and Borough of
Juneau approaches this.
• The Clerk's Office is prepared to maintain a wait list for mobile vendors as applications
are received for the year. If the first applicant is unable to obtain the required permits and
licenses of the city, we intend to offer the vendor space to the next applicant in line. The
same ideology would apply if the City Clerk revokes or suspends a mobile vendor permit.
Does council agree with this proposed process?
187
• When reviewing the proposed code revisions and draft policy, council might want to
consider the city's limited ability to enforce mobile and roving vending.
• The policy, as presented, addresses litter control on a somewhat basic level. Does
council want to expand on this topic further? For example, require a waste management
plan?
Discussion and direction is sought at this meeting on this draft policy, so staff can implement any
changes requested by the council and bring forward a final document for approval by Resolution
at the May 27, 2014 meeting. The public hearing and possible enactment of the corresponding
code changes will be on this agenda as well.
Siow City Clerk Memorandum, Draft Mobile and Roving Vendor Policy
5/12/2014 Page 2
188
City of Seward
smd
Mobile Vendor and Roving Vendor Policy
As Approved by City Council Resolution 2014-
PURPOSE
The purpose of this policy is to provide rules and regulations for the allowance of mobile
vending and roving vending on city-owned property. This policy is developed in accordance with
Seward City Code Section 15.10.140 (Definitions) and Section 15.10.225 (Land Uses Allowed
and Land Uses Allowed Table) and will be provided to prospective vendors as part of the
application packet.
Vending Permit Applications
Applications for a vending permit will be accepted by the City Clerk beginning October 1st each
year for the following business year (with the exception of the first year, which will be June 16,
2014). Issued permits will be valid for the remainder of that calendar year, regardless of the date
they were issued.
Vending peiniits are non-transferrable and are not eligible for subleasing.
Vendors may surrender their permit at any time prior to year-end by submitting a written
statement to the City Clerk.
Insurance
Each vendor shall be required to provide a Certificate of Insurance with the City of Seward as an
Additional Named Insured for a Commercial General Liability policy with coverage for $2
million aggregate/$1 million per occurrence, Commercial Auto, and Workers Compensation (if
business has employees).
If the business has employees, state law requires Workers Compensation insurance.
Subsequently, the City of Seward will additionally require the vendor provide a Waiver of
Subrogation.
A review of the permit application will be conducted by the city's Risk Manager (in cooperation
with the city's insurance provider) to determine if Product Liability insurance will also be
necessary. If this additional insurance coverage is required, the City Clerk's office will notify the
permittee in writing of this requirement.
DRAFT Mobile Vendor and Roving Vendor Policy City of Seward, Alaska
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Food vendors agree to comply with all state and federal regulations necessary for proper food
*law handling requirements.
Indemnification
Additionally, prior to acceptance of their permit, each vendor shall execute an instrument under
the terms of which the permittee shall agree to indemnify, defend, and hold harmless the City of
Seward from any and all claims for injury or damage to persons or property suffered in
connection with vendor activities.
General Standards of Operation
In addition to the requirements outlined in the Seward City Code:
• Vendors shall keep their site free of litter at all times. Trash may not be deposited in any
trash bin or receptacle without express permission from its owner.
• Vendors must park their vehicles and equipment within the traffic patterns recommended
by staff and in accordance with all traffic laws.
Suspension Or Revocation Of Permit And Appeals
In addition to the requirements of a mobile and or roving vendor listed in this policy and in
Seward City Code Section 15.10.225, the City Clerk may revoke, suspend or otherwise restrict a
permit for the same reasons listed for business licensing in Seward City Code Section 8.30.035.
Additionally, the permittee will have the same hearing and appeal rights as outlined for a city
business license in SCC 8.30.035 and 8.30.040.
MOBILE VENDING
Applications
Permits shall be issued on a first-come, first-served basis. Applications will be date- and time-
stamped as they are received, and will be maintained by City Clerk's office in the order in which
they were received.
There is no fee for submitting a permit application. However, only one mobile vending peiniit
per person or business will be issued at any given time. A vendor may submit applications for
%lay multiple permits in order to be put on the waitlist for different locations, but once one of their
DRAFT Mobile Vendor and Roving Vendor Policy City of Seward, Alaska
Resolution 2014-XXX Effective[date]
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applications begins to be processed, all other pending applications for mobile vending locations
become null and void. '••••0?
Permit applications must be processed and issued within a thirty (30) calendar day period. This
period begins with a written notice from the City Clerk's office to the applicant notifying them
that their application is being processed. From the date of that written notice, the applicant has
thirty (30) days in which to satisfy the application requirements, including providing
Certificate(s) of Insurance, photos, proof of a current City of Seward business license, and $100
permit fee made payable to the City of Seward. If these criteria are not satisfied within the thirty
(30) day processing period, the permit application becomes null and void and the next
application on the waitlist will be taken up and processed. In addition, a mobile vending permit
which has been issued for a certain location and which has been revoked or suspended or which
has been voluntarily vacated by the permittee shall also cause the next application on the waitlist
to be taken up and processed for that location.
Locations
The City of Seward shall designate seven (7) mobile vending locations and boundaries within
city limits as follows:
1. Washington Street— 10 x 20 feet
2. Waterfront Park Campground— 10 x 20 feet
3. Waterfront Park Campground— 10 x 20 feet
4. South Harbor Uplands — 10 x 20 feet
5. South Harbor Uplands — 10 x 20 feet
6. Seward Marine Industrial Center—20 x 20 feet
7. Seward Marine Industrial Center—20 x 20 feet
Please refer to Maps #1 — #4 attached to this policy for specific site locations.
Each site's boundaries will be clearly marked, and will be signed as a designated mobile vending
location with the hours of allowable operation. Vendors are required to operate within their
designated areas only.
The Washington Street site is designated in the downtown business district and will be permitted
to operate between 10:00 p.m. and 6:00 a.m. Mobile vending in this location will not be
permitted during the Annual Fourth of July Festival conducted by the Seward Chamber of
Commerce and Visitors' Bureau.
The hours of operation for all other sites will be 6:00 a.m. to 10:00 p.m.
DRAFT Mobile Vendor and Roving Vendor Policy City of Seward, Alaska
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ROVING VENDING
There is no fee for submitting a permit application. Multiple roving vendor permits are
allowable. Permit applications must be processed and issued within a thirty (30) calendar day
period. This period begins with a written notice from the City Clerk's office to the applicant
notifying them that their application is being processed. From the date of that written notice, the
applicant has thirty (30) days in which to satisfy the application requirements, including
providing Certificate(s) of Insurance, photos, proof of a current City of Seward business license,
and $100 permit fee made payable to the City of Seward. If these criteria are not satisfied within
the thirty (30) day processing period, the permit application becomes null and void.
Locations
Seward City Code 15.10.225(d)(1) designates roving vendors shall not vend on any public street
where the legal speed limit exceed 25 miles per hour, or on Fourth Avenue between Port Avenue
and Van Buren Street, and also excluding that portion of Fourth and Fifth Avenues between
Jefferson Street and Railway Avenue.
Please refer to Maps #5 — #6 attached to this policy for specific route exclusions.
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PROCLAMATION
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WHEREAS, America is the land of freedom, preserved and protected willingly and
freely by citizen soldiers; and
WHEREAS, millions who have answered the call to arms have died on the field of
battle; and
WHEREAS, , a nation at peace must be reminded of the price of war and the debt
owed to those who have died in war; and `"
WHEREAS, the red poppy has been designated as a symbol of sacrifice of lives in all
wars; and
WHEREAS,the American Legion Auxiliary has pledged to remind America annually
of this debt through the distribution of this memorial flower; and
WHEREAS, the proceeds of this worthy fundraising campaign are used exclusively
for the benefit of disabled and needy veterans and the widows and orphans of deceased
veterans.
NOW, THEREFORE, Wean Bardarson, Mayor of the City of Seward, do hereby
proclaim May, 2014 as Poppy Month and ask that all citizens pay tribute to those who
have made the ultimate sacrifice in the name of freedom by wearing the Memorial Poppy.
DATED THIS 12th DAY OF MAY, 2014 THE CITY OF SEWARD,ALASKA
Jean Bardarson,Mayor
193
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PROCLAMATION
WHEREAS, historic preservation is an effective tool for managing growth
and sustainable development, revitalizing neighborhoods, fostering local pride and 1
maintaining community character while enhancing livability; and
WHEREAS, historic preservation is relevant for communities across the 01
nation, both urban and rural, and for Americans of all ages, all walks of life and all 0
ethnic backgrounds; and
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WHEREAS, it is important to celebrate the role of history in our lives and i
the contributions made by dedicated individuals in helping to preserve the tangible
aspects of the heritage that has shaped us as a people; and I
WHEREAS, Embark. Inspire. Engage. is the theme for National 0
Preservation Month 2014, co-sponsored by the Seward Historic Preservation 0
II4' I Commission and the National Trust for Historic Preservation; and 4'
WHEREAS, over the course of the past year the Seward Historic 0
Preservation Commission has initiated and contributed to local historic li
! preservation activities and projects such as revising the Seward Historic
Preservation Plan.
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NOW, THEREFORE, I, Jean Bardarson, Mayor of the City of Seward, do
proclaim May, 2014 as National Preservation Month, and call upon the people of
Seward, Alaska to join their fellow citizens in recognizing and participating in this
special observance.
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Dated this 12th day of May, 2014 THE CITY OF SEWARD, ALASKA
'i0okor,
Jean Bardarson, Mayor
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City of Seward,Alaska
Hof sets, City of Seward 1963 1965 2005
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Seward,Alaska 99664-0167 AII•America Cis"
11-ASK1" Main Office (907)224-4050
Facsimile (907)224-4038 tod
May 6, 2014
Christi Bell, Director
UA Center for Economic Development
3211 Providence Drive
Anchorage, Alaska 99508
Dear Christi,
On behalf of the City of Seward, I would like to congratulate you on being named the
new Executive Director of the University of Alaska's Business Enterprise Institute. The
City of Seward and the Seward Chamber of Commerce Conference and Visitors Bureau
value our working relationship with you while developing the Seward Economic Growth
Plan. The University of Alaska Center for Economic Development and the Business
Enterprise Institute are better organizations because of your participation in them.
I am confident you will do great things in your new role and wish you the best of luck!
Congratulations,
Jean Bardarson, Mayor
City of Seward
Ned
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