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HomeMy WebLinkAbout05262015 City Council Packet Seward City Council Agenda Packet ir Mk g pi g 111.7 _L- - .r1( ir ar THE LF *. ISE BECAUSE OF THE BRAVE ,, **,* ''-''",. '�* ** . ,dr,t * * May 26, 2015 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska ;:ems CITY COUNCIL MEETING AGENDA � . ;r I 1 I I I t®I {Please silence all cellular phones during the meeting} ° ' May 26,2015 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 2016 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 2016 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 Council Member Term Expires 2015 1. Recognition for Lila Hurst for her volunteer work at the Seward Animal Control Shelter Pg. 4 Dale Butts Council Member B. Chamber of Commerce Report Term Expires 2016 C. City Manager's Report Pg. 5 D. Other Reports and Presentations Iris Darling Council Member Term Expires 2015 James Hunt City Manager • Johanna Kinney City Clerk Will Earnhart City Attorney City of Seward, Alaska Council Agenda May 26, 2015 Page 1 7. PUBLIC HEARINGS A. Resolutions Requiring A Public Hearing 1. Resolution 2015-045, Authorizing The City Manager To Enter Into A Lease Amendment With Alaska Logistics LLC For Lot 2, Block 3.Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97-27 Seward Recording District,Third Judicial District, State Of Alaska Pg. 12 2. Resolution 2015-046, Authorizing The City Manager To Enter Into An Agreement With The Kenai Peninsula Housing Initiative (KPHI), Donating Approximately 1.7 Acres Of The Southern Portion Of Lot 11A, Fort Raymond Subdivision Replat • Number 1, For The Sole Purpose Of Developing A Non-Income Based Independent Senior Housing Facility Upon Condition Of KPHI Being Awarded All Other Necessary Funding For The Project Development And Completion Pg.56 8. UNFINISHED BUSINESS A. Items postponed from Previous Agenda. 1. Discussion on State of Alaska's Department of Transportation Building in Seward. (added by Bardarson,postponed from March 23, 2015) 9. NEW BUSINESS A. Resolutions 1. Resolution 2015-047, Affirming That The Council Must Authorize The Seward Community Health Center's 2015 US Department Of Health And Human Services' Health Infrastructure Improvement Program Grant Application Pg. 75 2. Resolution 2015-048, Authorizing The City Manager To Amend The Contract With CRW Engineering Group, LLC And Increasing The Contract In The Amount Not To Exceed $178,830 To Provide Construction Support Services For The North Seward Water Storage Tank And Pumping Facility Project Pg. 91 3. Resolution 2015-049, Authorizing The City Manager To Enter Into A Professional Services Agreement With M.L. Foster & Associates To Provide Additional Engineering Services And Construction Support For An Amount Not To Exceed $58,000 Pg. 113 4. Resolution 2015-050, Authorizing The City Manager To Enter Into A Contract, With Jordan Meter Services, For The Reading Of Electrical Meters Within The City Of Seward Electric Service Area For An Amount Not To Exceed $60,000 And Appropriating Funds Pg. 130 City of Seward, Alaska Council Agenda May 26, 2015 Page 2 5. Resolution 2015-051, Accepting A Grant In The Amount Of$2,923.20 From The Alaska Highway Safety Office For The DUI High Visibility Enforcement Campaign During The 2015 Enforcement Periods Of Independence Day (July 3-5, 2015) And Labor Day(August 19-Sept 7,2015)And Appropriating Funds Pg. 138 B. Other New Business Items 1. Vote And Appoint two applicants to the Historic Preservation Commission For A Term To Expire May 2018. Applicants are Linda Lasota, Sandie Roach', and Frederick Woelkers Pg. 145 *2. Schedule a work session to review the 2014 audit results for 5:30 p.m. on Monday, June 22,2015. *3. Approve the Public Convenience/Eating Place Liquor License application for The Sea Bean,LLC Pg. 151 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. March 2015 Financial Reports for Providence Seward Medical and Care Center .Pg. 165 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT • City of Seward,Alaska Council Agenda May 26, 2015 Page 3 CERTIFICATE OF A Presented to LILA HURST • Jet► .�r�►`�. ��j I. / In appreciation of your many hours of volunteerism with the Seward Animal Shelter. On behalf of the City of Seward, thank you for your tireless efforts and dedication to the safety and welfare of animals, for your example and education of what a good pet owner should be, for your passion and dedication, and for your overall continual support of the Seward Animal Shelter. Thank you for going above and beyond the call of a volunteer and for your passion and concern for the wellbeing of animals. THE CITY OF SEWARD, ALASKA DATED this 26th day of May, 2015. Jean Bardarson, Mayor • CITY OF SEWARD Jim Hunt,City Manager P.O.Box 167 Telephone (907)224-4047 Seward,AK 99664 Facsimile (907)224-4038 MANAGER'S REPORT May 26, 2015 The following purchase orders for between$10,000 and$50,000 have been approved by the City Manager since the last council meeting: NONE A. Administration: • Consult with City Attorney • Attended Harbormaster Mack Funk's farewell • Viewed Bio-Domes being placed • Consult Rob Brown Usibelli • Attended Providence Region Ministry Board/Seward Community Meeting • Appointed Norm Regis acting Harbormaster B. Harbor: • The moorage contract six-month renewal letters have been mailed. • Eight contractors were represented at the pre-bid meeting on the dock replacement project. • Carl and Kim Hughes have requested a lease extension. They have also asked to add their son as a lessee. C. Public Works • Lowell Creek Pedestrian Bridge repairs completed 95% • SMIC Clean-up on beach finished will continue to monitor • Estuary Clean-up done • Notice to Proceed issued to Southcentral Construction Inc. to begin construction of the North Seward Water Storage Tank&Pumping Facility • Approval to Construct from ADEC received for North Seward Water Storage Tank&Pumping Facility • Bio-Domes should be placed by May 21st • Work on Cell#2 at Lowell Point WWTP in progress • Requesting Quotes for ROW Certification for Federal Highway Paving .... • Working with multiple departments on summer projects • Luke pay station installed and operating at sewer dump • Waiting for official Lowell Creek Tunnel inspection report from C.O.E. D. ELECTRIC • Number of outages/trouble calls since the last council meeting: 0 • Number of new Job Orders started since Jan. 1,2015:21 • The City electric crews are nearing completion on the first half of the Camelot project; the contracted crews are scheduled to start on the second half of the Camelot project the week of May 11 a'. • The Fort Raymond Backup generation facility is now down one generator, as expected. We will be short at least one generator until the completion of the project,tentatively scheduled for October. This should not affect any of our customers,but we are in contact with our larger customers in the event of an emergency outage. 5 • The electric department would like to thank the parks and rec department with their assistance in moving materials into the new warehouse. We are continuing to move items from the different stored locations into the warehouse and entering the inventory into the new computer program(SIMMS). During the summer construction season some of this work will be slow-going,which was anticipated. As the construction season winds down the electric crews will start focusing on the inventory once again. E. SPRD • Administration o Please take the community Health Survey o "Save the date"Sat,June 6 for the QNT community health and wellness picnic. Co-sponsored by the Seward Prevention Coalition, Seward Wellness for All and others o Continued work on the Master Plan,public meetings held with P&Z and Historic Preservation Commission. o The Seward Recreation Committee is considering leaving the City to continue work as an Action Team under the Chamber of Commerce,with a goal of public meetings and more community involvement,but less restrictions regarding quorum requirements,public notices and note-taking. o There are a number of parks maintenance,volunteer projects available to groups who are seeking fund-raiser ideas.A list of projects has been sent to the Boy Scouts, Girl Scout and similar groups. Call Karin,224-4053 if you're interested. o Special mention:Tuesday May 19th ADF&G planted 500 sterile trout in First Lake,in anticipation of last Saturday's Kids Fishing Day event. Partnership and cooperation between the Seward Fish and Game Advisory Committee and the Seward Parks and Rec department make this annual event such a success for the 100 or so kids and parents that participate.A special thanks goes out to Mikael Kinney for installing the fish grate in the outfall channel and a bunch of other improvements. • Parks&Rec thanks everyone who helped during Super Saturday Clean Up held on May 9h. Thanks to our main contributor;Alaska Waste for picking up and tallying all the bags. • The 2015"Polar Bear Jump Off,Pink Cheeks Triathlon,"was a big hit,with hundreds of participants. Thanks to volunteers and athletes who ran,biked and swam. • Adult co-ed Softball Leagues begin May 31,2015. The Softball Umpire clinic will be Thursday,May 28th at 5:30 led by Norm Regis, at the Jon Perry Field.Rookies and veterans are welcomed. Contact Robert Perea at 224-4054 • Bear's Den B&B Bear Bell Run Fri,June 5th-One mile race just for kids along the National Historic Iditarod Trail through the Waterfront Park Bike Path for ages 3— 12.Register in person at the Sports& Rec Gym or TYC. Teen&Youth Center/Teen Rec Room o Summer Camp May 26 for grade K-6 and Adventure camp begins July 6 o You can now find the TYC on Instagram. o The Teen Rec Room is switching to summer hours. Call 224-4056 for more details on summer activities,AND stop by and see us! Park Maintenance&Campgrounds All campground areas are open with the exception of Spring Creek All parks&rec restrooms and potable water stations are up and running.The Hoben Park fountain is flowing.As of 5-15, we have hosted 840 Camper Nights and brought in$16,500 in revenue 2 6 • April's camper nights were twice as many as recorded in April 2014. • The sewer dump station pay station is now in operation. Thanks to Public Works for their assistance. Customers pay$5 with either a credit/debit card or exact cash. • SPRD is still seeking seasonal Campground Attendants and Park Maintenance workers. • The City's Project Manager has resumed work on the Williams Park Restroom project. • We are seeking volunteers for select projects in the City cemeteries. Parking • Opened May 1, as mandated. • 168 Slip-Holder permits sold; 177 Harbor-area Employee passes sold • Seeking price quotes for sweeping and washing the paved Parking lots. F. LIBRARY • • The Seward Community Library&Museum bids a fond farewell to Katy Rullman,who has served as both a Collections Coordinator and Technician since June 2013, as she heads toward new adventures in life. She frequently went above and beyond the call of duty,,gave generously of her talents and will be greatly missed. We wish her happiness and success in all her endeavors! • Now Hiring o Two part-time seasonal aides News and Updates • • April 2015 Statistics: 12321 -Front Door Counter; 123 -Non SCLM Room Uses; 14-Passport applications ; 143 -Interlibrary loan requests; 15—Programs;22—Notaries; 331 -Museum Admission; 35 -Museum volunteers; 955-Public computer sessions • Seward Community Library Association(SCLA)Book Sale: The first book sale held in the Library Museum on April 181 was a whopping success. We extend our appreciation to SCLA and to the 25 volunteers who made it happen! Proceeds benefit the library collection. • School Museum/Movie Visits: In April there were four school visits,totaling 227 visitors,who viewed the SCLA Waves Over Seward earthquake movie,visited the Museum and participated in a history scavenger hunt. Many local and out-of-town schools schedule annual spring visits. (3) Upcoming Programs • Museum Open House: Thursday,May 28, 7 pm. Come and celebrate the new Brown&Hawkins exhibit with us! Followed by a Resurrection Bay Historical Society(RBHS)meeting. • Summer Reading Program Kick Off Party: Saturday,May 30,Noon—2 pm, for food and fun. All Seward youth are invited to participate in the"Every Hero Has a Story"summer reading program. According to the School Library Journal, "...students who take part in their local library's summer reading program SIGNIFICANTLY improve their reading skills." • Play&Chat: Wednesdays, 10:00 am. With the SeaView Infant Learning Program. • Writers Circle: Wednesday,May 27,6-8 pm. Walk-ins welcome. 3 fat ...r - - -- • f :r r ti P � t f' i r 6 .k,,3` tits': r`- ...4311`�,.,`_ '' w Y k' t"i r.v',..z. .t' f' L..0'' , A44, � C. se '• °s : I•�i- , 1 '` • ' -.r , , .� - t BL �� ,rc ,--,a.,-.., a. a a ,� c '-�.,. "1 `s 2t� 5" '2: .tits �w 'fr'' '"_.,,..._,....,:‘,.., , ...„...............2 „:„..., , ,_ t•:„. „.._____. __ . L.,....,,• ...?.,.....,..„..,,,.,.., , :'- -- -i..,r.,-..;9 :-.. aNgil 7:,-,-1:1?4"f*:4111,::: - , --..as--i. „A-L-1 4-1.°3400nr".:',.- .:.. A'4'__ •'--'- • F...._ ] � 1 n- s• r'7 5c. y 1r Y rff ea,'_sH.. l.,._i._-Css.� -a' Cf F ', ,Yrov '''"S ,'1..;„ I{� `a2:77. ...., �!,irallt ".v:.itx'"...,..,r;; Z>'".Stel_.ts.in. L' tbY xr,?;.; ,.yv 3...:_ ..o sih.T .� 1 Y .. Seward Lowell Pint Blo-Doane Being Placed 5.18®15 i 1 ' . .,'„'-4t:,'' �: ,�, rr ,',: •. t .rte, ,a (71 R 1 it) . *7' ..''...'.'-'1 14:::.j:Ii. ItIVT,IY ':■i••C-1 a..' 4 i yf " xa © x,1 .itr1 'i ,-;^-,::::',...;.P. " .5z.- ' -l'4 .1 . ,ii: . --,,, f'y...W.;' ..:,:;,,...9,..:0%.,, 4),....?.'tli. .,,. 1,),,t,_ ,,,, :_, ,.,.._ ,,,., , t o '=. iC - I2 r, s , r a i' ., S \�,' �� Lowell .•,i ,:i®��;)l'Itt,:' Crew Soltr.,15 8 MEM®RAN 9)U Sett,°�SF City of Seward r �C:asr�P.v for the Electric Department Period: 1 April thru 30 April 2015 To: Kirk Warren,AEA Ron Long, City of Seward Kari Atwood, City of Seward From: Rick Wise, Project Manager Date: 15 May 2015 Subject: Seward Power Plant Integration Progress Report, Grant#7910011 The on-site preconstruction meeting was held on April 7th with Electric Power Constructors (EPC)at the plant for contract C15-005, Fort Raymond Generator Relocation. EPC mobilized and started work that week. The first month of work focused on support system installations. The owner-supplied 5kV switchgear delay will have a quantified impact on the project. Commissioning of Generator 4 will be delayed and there is a high likelihood of limited activity on the job site for up to one month if the planned phasing is maintained. Options are being evaluated. A change order for work not identified and/or tasked in design was processed for Generator 4 to Valley Power Systems. This also includes additional procurements of owner-furnished materials for engine seismic spring mount isolators, engine exhaust thermocouple temperature sensors, and engine side panels for pressure gauges. A second round will be required for Generator 5 when we commit to take that system offline and start its relocation work. The EPC construction schedule is expected to be lengthened into September. This delay still does not impact the project adversely with respect to funding or time constraints. Sincerely, Richard S.Wise, Project Manager City of Seward P.O. Box 167 Seward, AK 99664 Phone: (907)224-4081 Email: rwise(c�cityofseward.net r � 9 Attachment 2: Progress Report Form Grantee: City of Seward Project Name: Seward Power Plant Integration Grant#79110011 Period of Report: 1 April 2015 to 30 April 2015 • Project Activities Completed: 1. EPC mobilized; preconstruction meeting held and work started. C15- 005(PO 394) 2. EPC performed electrical and mechanical work on infrastructure upgrades: compressed air system; cooling system supports. 3. Motor Control Center received and installed. (PO 259) 4. Received bulk shipment of VPS contract materials. C14-064(PO 154) 5. Change Order 1 to VPS contract will install Generator 4 local engine side panel for pressure gauges, and complete the installation of engine exhaust thermocouples. C14-064(PO 154) 6. PO 435 initiated to obtain owner-furnished materials for engine exhaust thermocouples and spring mount seismic isolators on Generator 4 only. Existing or Potential Problems: 1. Switchgear delayed; expecting arrival late June. C14-043(PO 261) 2. Switchgear delay impacts the EPC planned construction schedule. Activities Targeted for Next Reporting Period: 1. Relocate Generator 4 into generator building. 2. Receive and install Generator 4 engine thermocouples and isolators. 3. Reassess construction schedule. Determine whether Generator 5 will be moved earlier than planned. Prepared By: Date: 5/15/2015 Printed Name: Richard S. Wise 1 10 .4i6f. _' may 4�3 � - 7 � 4„;',...: . . � �. � �. !!i ' 1 ''. i , v w r 3w 3 ■ 44� �: %1 . xr 1 t'11 i'-‘..cf;44.1- e .�, f f = I 1 t':: ; ''' zt Y r Ia ,I I/r A 4 - ; ,� i , C Wr y -s I'' : „ .. _, . ... . , , , . vi 9 r rte` ..... @ .7 - ir. J/ _.,.:+r.wer a ., , ! ... . , w . . 9 5 1_By�. : ..t r `� la/ y.i x k + r 1 L 7•; Wj a a m .' HJ 1,...'4,,,...,,� ma `" .,','.,C,,4"` 4- ,' 1 tiga y t. „ iy, +`!C" °w r :�P.' iw v Ri ::. 6+"T rS Sr ', MA — S'� www`� � w3; .' F +a. �, r +iZw� �"ti= Y+• Z+ ; �� a a Ci +t 7 ♦ w' £ X1 g<. d k ;v.:,1,.. Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AMENDMENT WITH ALASKA LOGISTICS LLC FOR LOT 2, BLOCK 3 FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, PLAT NO. 97-27 SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT,STATE OF ALASKA WHEREAS,the city is owner of real property described as Lot 2, Block 3 Fourth of July Creek Subdivision;and WHEREAS, this parcel was leased to Alaska Logistics LLC in 2009 for a term of five years; and WHEREAS, the parties to the lease want to extend the term for an additional term ending on December 31, 2113. WHEREAS,the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The council has determined that the essential terms and conditions of the proposed lease amendment with Alaska Logistics LLC for the real property described as Lot 2, Block 3, Fourth of July Creek Subdivision located in the City of Seward, Alaska are in the public's interest. Section 2. The City Manager is authorized to execute the lease amendment with Alaska Logistics LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect 30 days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 26th day of May,2015. 12 Age Ida Statement r OF s / Meeting Date: May,1-1;2015 ;<I; ''•`��' .ii To: City Council �- Q1A * Through: City Manager Jim Hun, 'l From: Harbormaster Mack Funk Agenda Item: Alaska Logistics LLC Long Term Extension for Lease 09-126 at Lot 2, Block 3, 4th of July Creek Subdivision, Seward Marine Industrial Center BACKGROUND &JUSTIFICATION: Alaska Logistics LLC, has executed a lease extension through December 31, 2113. This is a ninety-nine year extension beyond the end expiration of the original five year lease. That contract has been in a month to month holding over status since December 31, 2014. A longer lease will afford greater security for financing purposes. The current Municipal Land Use Plan adopted by the City Council designates SMIC lands for lease. The parcel is used for boat repairs, especially during the winter months. Five years ago, Alaska Logistics constructed their building using stacked containers for walls and a truss roof system. INTENT: To approve a lease amendment between the City of Seward and Alaska Logistics LLC on Lot 2, Block 3 Fourth of July Creek Subdivision at the Seward Marine Industrial Center for boat storage and repair operations. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan goals to develop SMIC as a major industrial area of the community. Strategic Plan(document source here):Attract New n.dustry: 2 Develop an aggressive marketing campaign which highlights the diverse resources,and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other(list): FISCAL NOTE: 13 • • The current annual lease amount is$13,288.68 plus tax. The leased property was re-appraised in early 2015. Approved by Finance Department: 91.1,40- ,i, ATTORNEY REVIEW: Yes No Not Applicable",. RECOMMENDATION: Approve Resolution 2015- 045 authorizing the City Manager to enter into a Lease Amendment with Alaska Logistics LLC for Lot 2, Block 3 Fourth of July Creek Subdivision in the Seward Marine Industrial Center, Plat No. 97-27 in the Seward Recording District, Third Judicial District, State of Alaska. 14 LEASE EXTENSION.01E' NONE' NT (R.0009426) THE CITY OF*WARP; ALA$0, a home rule ruunkipal eorporationi organized and existing under the laws of the State of Alaska, hereinafter referred to as '!CITY,"' whose address is PA Box 167, Seward, Alaska 29$04,. and ALASKA tootroco; LLC, dba Alaska Logistics WA LLC,Ihereinafter referred to dAith6"LESSEE,'?.hefehy agree that the lease agreement 2009-.120 fOr.Lot 2, Block 3,4*of July Creek Subdivision;Seward Marine Industrial Center,Third Judicial District, Seward Recording District,State of Alaska is hereby-amended as ARTICLE;2.1 Lease Terin The term of this lease::shalt be extended in accordance with Resolution No 2l15- O4 for ninety-nine.(90 years and shall terminate on December 31,2113: ARTICLE 2.2.Oation Parehate Should the CITY decide to sell the Leased land,as described above in Section I.1, Lessee has an option-to purchase and right of first refusal in regard to the Leased land as explained ;beloW, During the term of this Agreement, before CITY may sell the Leased Land as an individual parcel to a third party,CITY shall first offer the Leased Land to LESSEE on the same terms and conditions as are offered by the thirdpartY. LESSEE shall have 30 days during which to accept said Offer. If LESSFEdoes:ncit accept said offer Within said*Petiod, COY shall be fro to accept the third-party offer: if CITY does not enter into an agreement with the third party on Said terms and conditions and close the transaction within .180.days, CITY!.s right to sell th e ,Leasedtand tothe thirdpatty Shall expire and the procedure described In this Section shall again be appliCable. The provisions of this soctioa are NOT applicable if the Leased Land 4s offered as part of an agreement by the CITY to sell all of its land holdings at the Seward Marine Industrial Center pr 4 portion thereof oceeeding ten(10)aete:s-, ARTieu 3 RENTAL RATE - The Annual Rotal.Rate on the effective date of this amendment through June 30,2015 is $13,288.68 and shall he adjusted on July I, 2015. All .other terms of ARTICLE 3 remain unchanged. ARTICLE1M Mhthnuni Insurantellequiretnents All minimum insurance limits may be increased to conform to industry standards on request by CITY. Page I •3 15 ARTICLE 17.1 ArbitratiOn Section(a).is amended 16 reflect the current jurisdictional limit of the Superior Court and all references to Fifty Thousand ,Dollars (S50,000) are changed to One-Hundred Thousand Dollars 0100,004 In.all other respects, the Lease is to remain unchanged and in fUll force between the. Undersigned parties. this amendment is effective 30 days from Council approval. •LESSOR: LESSEE: CITY OF SEWARD ALASKA LO ISTICS,LLC Jim Hunt,City Manager Pg, anagin tier: -...- Date: _ s ate: ATTEST: 'Johanna Kinney,CMC,*City Cjetk (City Seab [ACKNOWLEDGEMENTS ON NEXT PAGEJ Page 2 of 3 16 STATE OF:ALASKA )ss. THIRD JUDICIAL DISTRICT ) THISTS TO PERTIFY.that.on this _ . day of" . _ before: me, the undersigned, a*nary Ptiblic in and for the State of Alaska, personally-appeared Jim Hunt,known to me and to me known to be the City Manager for the City of Seward,Alaska,and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document:on behalf of the City of*Seward for the uses and purposes therein set forth. WITNESS inyhand and notarial.seal the day lutd year first hereinaboye written: NOTARY pow IN AND FoR ALASKA My COMmiSsionExpires:_ STATE OF WASHINGTON ) )ss.. KING COUNTY ). THIS iS TO CERTIFY that on this, yof Ai _ _ 200, Ie:ore me, the undersigned,:a'Notary Public in and for ofe.State of Washington, personally appeared Allyn Lobo, known to me and to me icnown to be the Managing Partner for ALASKA LOGISTICS, LLC and authorizedf: execute,documents on its behalf; and is the mdividual named in and who executed the foregoing document on behalf of the corporation for the uses and purposes.:therein setfOrth, WITNESS my hamiand notarial seal the day and year firs er • (;Ve; . : 1 00111 i tit% 'fF - ;iit• 4.11 Nfiri vt4e NOTARY PUBLIC A Mar TON 1.1Y AtfIAR `41!% My Conniiission Expires.: .* 7.44): puBtk 1 P .1':- s c.% :14 • co 44: OF wNsc, :Page Of 3 17 } 1°l!it S 1:1i l: Department of Environmental l'SA:. z. v. nW Conservation N'ISION of W A I R ------------•-.--- Wastewater Discharge Authorization Program c,,'rvt.PN(AZ l 1Li s hJ 555 Cordova S1ree! 4 Anchorage,Alaska 99501-2617 Main:907.269.6285 Fax:907.334.2415 April I,2015 •+.ww 1ec.araska.gev/wafer/wwdp Company:Alaska Logistics,LLC Facility: ATTN:Allyn Long Alaska Logistics @ Seward Marine Industrial Complex PO Box 604 Mile 7 Nash Road Seward,AK 99664 Seward,AK 99664 Permit Number:AXRO6AA11 This email/letter acknowledges that you have submitted a complete Notice of Intent form to be covered under the APDES General Permit for Storm water Discharges for Multi-Sector General Permit Activity(MSGP).The permittee is authorized to discharge storm water under the terms and conditions of this permit seven(7)calendar days after acknowledgment of receipt of the permittee's completed NOI is posted on ADEC's Storm Water Permit Search website (http://www.dec.state.ak.us/Applications/Wa ter/WaterPermi tSearch/Scarch.aspx). Coverage under this permit begins seven-days from the"Date Issued"on the Water Permit Search website. As stated above,this letter acknowledges receipt of a complete Notice of Intent.However,it is not an ADEC determination of the validity of the information you provided.Your eligibility for coverage under the Permit is based on the validity of the certification you provided.Your signature on the Notice of Intent certifies.that you have read,understood, and are implementing all of the applicable requirements.An important aspect of this certification requires that you correctly determine whether you are eligible for coverage under this permit. As you know,the Multi-Sector General Permit requires you to have developed and begun implementing a Storm water Pollution Prevention Plan(SWPPP)and outlines important inspection and record keeping requirements.You must also comply with any additional location-specific requirements applicable to your state or tribal area.A copy of the Multi- Sector General Permit must be kept with your SWPPP.An electronic copy of the Permit and additional guidance materials can be viewed and downloaded at http://www.dec.state.ak.ush,vater/wnpspc/stormwater/in For tracking purposes,the following number has been assigned to your Notice of Intent Form:AKRO6AA11 If you have general questions regarding the storm water program or your responsibilities under the Multi-Sector General Permit,please call William Ashton (907)269-6283. 18 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and ALASKA LOGISTICS, LLC Effective Date: f 124 31� ) • 19 S ? ) TABLE OF CONTENTS ARTICLE 1-LEASED LAND 1 1.1 Description of Leased Land 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title 2 1.4 Property Accepted 2 1.5 Permits 2 1.6 Platting 3 ARTICLE 2-LEASE TERM 3 2.1 Lease Term • 3 2.2 Options to Extend 3 ARTICLE 3-RENTAL RATE 3 3.1 Initial Rental Rate 3 3.2 Rental Adjustments 4 3.3 Procedure for Rental Adjustment 4 3.4 Effect of Late Appraisal by CITY 4 - 3.5 Appraisal by LESSEE 5 3.6 . Effective Date ofAdjusted Rental Rate 5 3.7 Interim Rental Adjustments 5 3.8 Late Payment Charge 6 ARTICLE 4-USE OF LEASED LAND 6 4.1 Use of Leased Land 6 4.2 Obligations of LESSEE 6 . 4.3 No Preferential Rights to Use Public Facilities 7 4.3 No Preferential Rights to Use Public Facilities 7 4.4 Adequacy of Public Facilities 7 4.4 Adequacy of Public Facilities 7 4.5 Tariffs and Other Service Fees 7 4.5 Tariffs and Other Service Fees 7 • 4.6 Time for Payment of Utilities and Taxes 7 4.6 Time for Payment of Utilities and Taxes 7 4.7 Other Uses 7 4.7 Other Uses 7 ARTICLE 5-UTILITIES AND RIGHTS OF ACCESS 7 5.1 Utilities 7 5.2 Third-Party Improvements 8 5.3 Easements 9 ARTICLE 6-CONSTRUCTION BY LESSEE 9 6.1 Improvements on Leased Land - 9 6.2 City Review of Construction 10 ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 10 7.1 Return of Leased Land in Original Condition .10 i 20 7.2 Return of Leased Land in Different erent Condition 11 ARTICLE 8-FORCE MAJEURE 11 ARTICLE 9-LESSEE'S ACTS OF DEFAULT 11 ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE 12 ARTICLE 11-TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 14 11.1 Real Property Improvements - 14 11.2 Personal Property 14 ARTICLE 12-ASSIGNMENT OR SUBLEASE 14 12.1 Assignment of Lease or Subleasing 14 12.2 Assignment of Lease for Security 15 12.3 Assignment to Affiliate 16 ARTICLE 13-LESSEE'S DUTY TO DEFEND/INDEMNIFY 16 ARTICLE 14-CITY'S DUTY TO DEFEND/INDEMNIFY 16 ARTICLE 15-INSURANCE 16 15.1 Minimum Insurance Requirements 16 15.2 Subrogation Rights Waived • 17 ARTICLE 16-CONDEMNATION 18 ARTICLE 17-ARBITRATION 18 17.1 Arbitration 18 ARTICLE 18-MAINTENANCE AND REPAIRS 19 18.1 Normal Maintenance 19 18.2 Safety Issues 20 18.3 Cost of Repairs 20 ARTICLE 19-ENVIRONMENTAL CONCERNS 20 19.1 Hazardous Materials 20 19.2 Permits and Reporting 23 ARTICLE 20-ESTOPPEL CERTIFICATES 23 ARTICLE 21-CONDITIONS AND COVENANTS 24 ARTICLE 22-NO WAIVER OF BREACH 24 ARTICLE 23-TIME OF THE ESSENCE 24. ARTICLE 24-COMPUTATION OF TIME 24 ARTICLE 25-SUCCESSORS IN INTEREST 24 • ARTICLE 26-ENTIRE AGREEMENT • 24 ARTICLE 27-GOVERNING LAW 24 ARTICLE 28-PARTIAL INVALIDITY 25 ARTICLE 29--RELATIONSHIP OF PARTIES 25 ARTICLE 30-INTERPRETATION 25 ARTICLE 31-CAPTIONS 25 ARTICLE 32-AMENDMENT 25 ARTICLE 33-NOTICES 25 • ARTICLE 34-FIRE PROTECTION 26 • ri 21 EDIT A -DESCRIPTION OF THE LEASED LAND EXHIBIT B-SITE PLAN EXHIBIT C-ENVIRONMENTAL COMPLIANCE PLAN • • • 22 • 1 _) LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD(the"CITY"),a municipal corporation located in the Kenai Peninsula Borough,State of Alaska,whose mailing address is P.O.Box 167,Seward,Alaska 99664 and ALASKA LOGISTICS, LLC, dba Alaska Logistics WA LLC (the"LESSEE"), a Washington limited liability company authorized to do business in Alaska,whose mailing address is P.O. Box 3512, Seattle,WA 98124. WHEREAS,the Seward Planning&Zoning commission has approved disposal by lease of lands owned by the City in the Seward Marine Industrial Center,and WHEREAS, LESSEE desires to lease land from the CITY for a vessel storage and maintenance facility and related business uses; and WHEREAS,the parties agree that the City will retain access to a portion ofthe Leased Land, as .defined below, for purposes of continuing environmental cleanup work related to diesel contamination found in soils;and WHEREAS,during the soil cleanup period,the rent payable by LESSEE will be reduced to reflect the limited use of the Property by the City; and WHEREAS, the Seward Planning &Zoning Commission granted a variance to allow a structure with a height of 46 feet;and • WHEREAS, the City Council of CITY has determined that lease of the Leased Land to LESSEE for the purposes described herein would be in the public interest;and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land during the lease term;and NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained,the parties hereto agree as follows: ARTICLE 1-LEASED LAND 1.1 Description ofLeased Land. The Leased Land is located in the City of Seward,Alaska. The Leased Land is described as follows: Lot 2,Block 3,Fourth of July Creek Subdivision, Seward Marine Industrial Center,Kenai Peninsula Borough, Plat No. 97-108 recorded in the Seward Recording District, Third Judicial District, State of Alaska, containing approximately 2.5 acres, more or less (the 1 23 "Leased Land"). The Leased Land is also depicted on the attached Exhibit A,which is incorporated herein by • reference. 1.2 Covenant of Quiet Enjoyment. Subject to the encumbrances as of the date hereof any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that: a) The CITY retains the right to use the Leased Land for the limited purpose of continuing the soil cleanup project in the area shown on Exhibit A. Following notice to LESSEE by the CITY that such use.is no longer needed,LESSEE shall have the quiet enjoyment and possession ofthe Leased Land for the full remaining term ofthis LEASE; b) CITY is unaware of any prior conflicting use ofthe Leased Land that would adversely affect LESSEE'S intended use of the subject parcel. 1.3 Reserved 1.4 Property Accepted As-is."LESSEE acknowledges that it has inspected the Leased Land and accepts the same"as-is"and without reliance on any expressed or implied representations or warranties of CITY(other than the representations in Section 1.2 hereof),or agents ofCITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. • 1.5 Permits. LESSEE,at its sole cost,shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time,upon request of LESSEE, execute such documents, petitions, applications and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits,zoning and re-zoning,tentative and final tract approval,.or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However,nothing in this Section shall be construed as requiring CITY.to support or approve any such application or permit requests. If the agency or public body responsible to . approve or grant such application or permit request is a Cityof Seward agency,department, or board,LESSEE shall follow all City of Seward procedures,the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals,including without limitation those required by the U.S.Army Corps of Engineers(e.g.,wetland fill permits),the Environmental Protection Agency(e.g., Clean Air Act permits),the Alaska Department of Public Facilities and Transportation(e.g.,right-of- 2• • 24 • • way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. • 1.6 Platting. In the event CITY elects to replat,CITY agrees to include the Leased Land in such replatin accordance with reasonable requests by LESSEE. If LESSEE requests a replat of the Leased Land prior to that time;CITY shall assist LESSEE in the preparation and filing of the.replat, and LESSEE shall reimburse CITY for CTTY's costs in assisting with the preparation and filing ofthe replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the. Leased Land. LESSEE shall accept other reasonable restrictions,easements,or plat notes as maybe required by CITY or other governmental authorities as a condition to filing theplat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. ARTICLE 2-LEASE TERM 2.1 Lease Term. The term of this LEASE(the"Lease Term")shall be in accordance with CITY's • authorization Resolution No. 2009- , (the "Resolution"). The Lease Term shall • commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE(the"Effective Date"). The Lease Term shall run for approximately 5 years from the Effective Date, ending at midnight on December 15,2014. 2.2 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for one additional five year period,provided that: a) LESSEE exercises its option to extend at least one hundred and eighty(180)days . prior to the expiration of the current lease term; b) LESSEE is not in default under any term or provision of this LEASE;and c) LESSEE shall exercise its option to extend by sending written notice thereof in • accordance with the provisions of Article 33 of this LEASE. ARTICLE 3-RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2010, the annual rental rate for the Leased Land shall be set at $13,608.00, which is • acknowledged to be fair market rental value for the Leased Land. Rent shall be payable • quarterly in advance upon the Effective Date of this Lease(prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each . quarterly payment shall be one-quarter ofthe annual rental rate as initially established or later adjusted under this Article 3. ' 3 • • 25 • 3.2 Rental Adjustments. • (a) The amount of$8,165.00 shall be credited toward the annual rental payment to reflect the CITY's continuing use of a portion ofthe Leased Land until there is no longer a need for the CITY's presence as evidenced by written notice from the CITY to LESSEE. (b) The annual rental payment shall be adjusted on July 1, 2010, and on the same date every five years thereafter(each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value(the"Fair Market Rental Value")of the Leased Land at the highest and best use ofthe Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE'S intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY. shall complete such appraisal and deliver a copy ofthe appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. • 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense,retain an independent State of Alaska certified MAI appraiser(Member,Appraisal Institute),who shall determine the"Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY(including those made • before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination o f Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date,unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case,LESSEE shall give written notice to CITY ofits objection within thirty(30)days of receipt of the appraiser's report,and LESSEE shall then engage an independent State ofAlaska certified MAI appraiser(Member,Appraisal Institute) at LESSEE'S expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent(20%),then the adjusted • rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent(20%),then,unless CITY and LESSEE agree on arate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 17 of this LEASE. • 3.4 Effect of Late Appraisal by CITY I1 for any reason,CITY does not complete the appraisal or deliver a copy of the appraisal report.to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the 4 • • 26 appraisal report to LESSEE at any time thereafter. However,any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particular Rental Adjustment Date,CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MM appraiser(Member,Appraisal Institute)at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date.However, LESSEE must notify CITY in writing within thirty(30) days following the Rental Adjustment Date of LESSEE's election to obtain an . appraisal. If CITY objects to LESSEE'S appraiser's determination ofthe Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty(30)days of . receipt ofthe appraiser's report,and CITY shall then engage an independent State ofAlaska . certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal ofthe Fair Market Rental Value as ofthe Rental Adjustment Date and in accordance . . with this Article 3. Ifthe CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE'S appraisal by no more than twenty percent(20%),then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE'S appraisal by more than twenty percent(20%),then,unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 17 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate.- The adjusted annual rental rate established by this • Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety(90)days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to.LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE'S obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount ofrent as established or adjusted by CITY until the question ofobjection to the rental rate is finally resolved.•At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE,to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment . • Date, excepting the Rental Adjustment Dates,the annual rental payment shall be increased beginning July 1, 2011, and on July 1 of every year thereafter (each an "Interim Rental 5 27 • Adjustment Date")in an amount that reflects the increase,if any,in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area,All Items 1967=100("CPI"),as published by the United States Department of Labor,Bureau of Labor Statistics for the most recent period published immediatelyprior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period,and make whatever adjustment in its application as maybe necessary,in the CITY's sole discretion,to accomplish as nearly the same result as if the CPI bad not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the.maximum rate permitted under Alaska law, whichever is less,plus a flat monthly late fee of$2.50,or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4-USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE for operating a business to store vessels, engage in ship repair and maintenance, equipment rental and storage, equipment maintenance, and similar related marine business activities,and uses necessary and incidental thereto,has been determined by the City Council to be in the public interest. 4.2 Obligations,of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: • a) The Leased Land is to be completely cleaned and restored to its original condition upon termination of this Lease that is,the condition.existing prior to any operations by LESSEE under this or any prior agreement, or in better•condition. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall use the Leased Land only for the uses described in Section 4.1,and uses necessary and incidental thereto. (e) A site plan, attached as Exhibit B,has been submitted and approved by the CITY. Any changes to this site require CITY approval,through the City Manager,prior to additional construction. LESSEE's failure to.obtain CITY approval ofany changes to 6 28 the site development plan or LESSEE'S failure to install the improvements according to the site development plan shall be a LESSEE Act of Default under this LEASE. f) Attached as Exhibit C is the Environmental Compliance Plan to be implemented and followed by LESSEE. g). LESSEE shall not allow any camping on the leased property unless the LESSEE obtains all required permits.for an employee campground. • • 4.3 No Preferential Rights to Use Public Facilities. Except as provided in Section 4.3, this LEASE does not grant to LESSEE any exclusive rights to use any public port facilities. • LESSEE will be subject to any tariffs,procedures,rules and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use.. 4.4 Adequacy ofPublic Facilities.CITY makes no representations or warranties as to the fitness . of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE,and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any • .information provided by CITY. 4.5 Tarif s and Other Service Fees. CITY shall have the right to make amendments to its tarifa, regulations and scheduled fees from time to time even ifthose adjustments shall cost LESSEE more for its operations or:use ofpublic facilities,and CITY is free to do so provided only that - it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon,if any,before such obligations become delinquent;provided,that LESSEE may,in good faith and before such delinquency,contest any such charge or assessment. 4.7 - Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. • ARTICLE 5-UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities.- LESSEE, at LESSEE's sole cost and expense,shall provide for the extension of . public utilities to the Leased Land sufficient for LESSEE'S intended operations. In so doing, LESSEE shall comply with all.CITY regulations and requirements, and the tarifa of the 7 • 29 • affected utilities,with respect to the construction ofthose utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to . CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable'building,mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies maybe used to serve other customers ofLESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings,equipment,direct labor,and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or,utility company. • LESSEE shall not be entitled to any refund,rebate,or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation ofLESSEE's facilities on the Leased Land,it being the intent ofthe parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver,or join in execution and delivery oi;such documents as are appropriate, necessary,or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions and restrictions providing for the granting of uses of the Leased Land, or any part thereof; the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or.other hie matters (herein called "third-party improvements"), all of which are for the purpose of the orderly • development of the Leased Land as a commercial unit subject, however,to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section,CITY shall be without expense therefor,and the cost and expense thereof shall be.borne•solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the • 8 • 30 • • property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development ofthe Leased Land and adjacent lands,it maybe necessary,desirable or required that street,railroad,water,sewer,drainage, gas, power line and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this • LEASE, CITY and LESSEE each shall,at the request of the other,join with each other in executing and delivering such documents from time to time and throughout the Lease Term as • maybe appropriate,necessary,or required by the several governmental agencies(including the City of Seward),public utilities and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations.The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and • expense ofthe party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. . ARTICLE 6-CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect,maintain, alter, remodel,reconstruct,rebuild,build and/or replace buildings and other improvements on the Leased Sand,subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, • alterations or improvements,shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materiahnen's liens. • c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans(based on a recent survey)for the Leased Land prior•to commencement of construction. • d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of-ways or easements. On completion of any improvements, LESSEE . shall provide CITY a copy of an as built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE or its sublessees shall be appropriately bonded by use ofperfonnance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS 9 31 �-) •($50,000). Copies of all such bonds shall be • urnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000.00), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an"affiliate"of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited'liability company in which LESSEE maintains a substantial membership interest,no performance bond shall be required. t) CITY may,as contemplated by Alaska Statutes,give notice ofnon-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal,state and local statutes and regulations with respect to such construction, including but not limited to all applicable building, mechanical,and fire codes. No permanent construction is allowed in any easement. . 6.2 City Review of Construction. CITY shall have the right to review initial-plans,including those supplied to CITY under Section 6.1 hereof and any future changes or additions to LESSEE'S facilities on the Leased Land,by reviewing the design thereofprior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY'S representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE'S plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements,rights-of-way,or setback requirements.LESSEE shall obtain the usual and customary performance guarantees from its contractors,and CITY shall be named as an additional insured. ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 • herein,upon termination of this LEASE for any reason,LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE,subject to normal,non-abusive use. The Leased Land shall be free of all Hazardous Materials and • contamination arising out of or resulting from or occurring during LESSEE'S operations or use of the Leased Land during this LEASE. 10 32 I 7.2 Return of Leased Land in Different Condition. Notwithstanding the provisions of Section 7.1 above,upon termination of this LEASE for any reason LESSEE may return the Leased Land in a re-contoured or graded clean,safe,and stable condition different from its original condition provided CITY grants written approval of LESSEE's plans for development ofthe Leased Land contours,including its plans for material extraction and final grade. • ARTICLE 8-FORCE MAJEURE • In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance,or war,the time period wherein such performance is to occur shall be extended by that • amount of time necessary to compensate for the delay. ARTICLE 9-LESSEE'S ACTS OF DEFAULT Each of the following shall be a"LESSEE Act of Default"under this LEASE and the terms "acts ofdefault"and"default"shall mean,whenever they are used in this LEASE,any one or more of the following events:• . 9.1 Failure by LESSEE to pay promptly when due,and in no event later than twenty(20)days from the due date thereof;the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to observe,Mill or perform any covenants,conditions or agreements on its part to be observed or performed under this LEASE for a period of thirty(30)days after written notice specifying such failure,requesting that it be remedied,and stating that it is a notice of default,has been given to LESSEE by CITY;provided,however,that if said default is such that it cannot be corrected within the applicable period,it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.3 The making by LESSEE of an assignment for the benefit of creditors,the filing ofa petition in bankruptcy by LESSEE,the adjudication ofLESSEE as insolvent or bankrupt,the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part ofits property;or the commencement of any proceeding relating to LESSEE under any bankruptcy,insolvency,reorganization,arrangement or readjustment ofdebt 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(6)months from the date of commencement thereof 9.4 LESSEE's failure to comply with any laws or regulations ofthe United States,or ofthe State of Alaska, or any conditions of any permits issued by agencies of the City of Seward,the . Kenai Peninsula Borough,the State ofAlaska or ofthe United States Government applicable 11 • • • 33 • to LESSEE'S use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty(60)days after written notice specifying such non-compliance has been given by the agency charged with the enforcement of such laws,regulations or permits to LESSEE; provided, however, if such non-compliance be such that it cannot be corrected within the applicable period,it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the LESSEE is.in compliance. Furthermore, if LESSEE shall contest such alleged non-compliance through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued;provided,however,that any.such extension oftime shall not be effective if the effect ofthe interim administrative or judicial action is to cause a stoppage,interruption or threat to the activities of any person or entity other than those of LESSEE. • 9.5 Reserved. 9.6 Faihue of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. • • 9.7 Failure to promptly pay when due any user,wharfage,or other charges by the City of Seward and associated with the Seward Marine Industrial Center;or 9.8 Failure of LESSEE to promptly pay when due any real or personal property taxes or any sales 1 taxes assessed by the Kenai Peninsula Borough. 9.9 Use of the Leased Land,or any portion ofthe Leased Land,.for camping without appropriate permits obtained from the City of Seward. ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period.for giving notice and any opportunity to cure shall have expired,CITY shall have the following rights and remedies all in addition to.any rights and remedies that maybe given to CITY by statute,common law or.otherwise: . 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform,Commercial Code (AS 45.29.601-.628)with respect to sale of property shall be a commercially reasonable disposal 10.2 CITY may re-enter the Leased Land and take possession thereof and,except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property ofLESSEE from the Leased Land.Such personal propertymay 12 • • ■ 34 be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost ofLESSEE all without service ofnotice or resort to legal process,all ofwhich LESSEE expressly waives. 10.3 In addition to the above,CITY may: a) Declare this LEASE terminated; • b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attomey's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; • d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE'S default or breach including,but not limited to,the cost of recovering possession of the Leased Land, expenses of reletting including costs of necessary renovation and alteration of the premises,reasonable attomey's fees and any real estate commissions actually paid. I) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and • recover all costs and expense incurred by CITY to remove such.improvements. 10.4 If LESSEE does not immediately surrender possession ofthe Leased Land after termination by CITY and upon demand by CITY,CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears ofrent or • breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform ofLESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude • 13 • 35 j• the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or there er existing at law,or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act ofdefault shall impair any such right or power or shall be construed to be a waiver thereof but any suchright and power may be exercised front time to time-and as often as may be deemed expedient ARTICLE 11-TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. Alllimprovements constructed by LESSEE on the Leased Land or on easements to or from the Same, such as buildings, warehouses, conveyor systems, ditches,sewer lines,water lines,dpces or berms and similar improvements,shall become the property of CITY upon termination of this LEASE for any reason;provided,however,.that CITY-may require LESSEE, at.LESSEE'S sole expense, to remove any improvements designated by CITY. 11.2 Personal Property. Upon termination of this LEASE for any reason other than default by LESSEE, LESSEE may,but n not,promptly remove,in no event later than ninety(90) days from the termination ofthe ASE,trade fixtures and equipment from the Leased Land provided that LESSEE shall rep •,any damages to the Leased Land caused by such removal. ARTICLE 12-ASSIGNMENT OR SUBLEASE • 12.1 Assignment of Lease or Subleasling. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The fights and duties created by the LEASE are personal to LESSEE and.CITY has granted the LEASE in reliance upon the individual character and financial capability ofLES SEE. Therefore,LESSEE shall not assign or sublease this LEASE without CITY'S prior written co ent,in CITY's sole discretion. LESSEE may sublease a portion of the Leased Land or b •dings or improvements located thereon only-with CITY'S • prior written consent,which consent shall be granted if • a) The use of the Leased Land by the proposed sublessee is compatible with the use of 'adjacent lands; . b) The proposed use is a permitted use under the then existing zoning regulations and comprehensive land use plan; c) LESSEE has made a written request to sublease a portion of the Leased Land or buildings or improvements located thereon and provided CITY with a copy of the sublease agreement. The 4blease agreement shall not provide for a lease amount that is greater than 20%more than the amount that the LESSEE pays the CITY pursuant. to Article 3 for that portion ofthe Leased Land subject to the sublease,calculated on 14 36 • • a pro rata basis. The•sublease agreement shall state that it is subject to and subordinate to this LEASE and any amendments thereto; d) The sublessee shall agree to defend, indemnify and hold•harn less the CITY, its officials, employees, and agents, from any and all liability or claims for damages, including personal injuries,death and property damage arising out ofor resulting from sublessee's use ofthe Leased Land by themselves,their agents,contractors,guests or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY,its officials,employees, agents, or contractors; e) LESSEE's full faith and credit shall remain obligated under this LEASE as though the • sublease had not taken place; • f) The sublessee assumes and agrees in writing to pay and perform all ofthe obligations • of LESSEE hereunder including, without limitation, Article 19 - Environmental Concerns;and - - g) The sublessee has a credit-worthiness demonstrated to be equal to or better than LESSEE and has operating experience suitable to manage any facilities located on the Leased Land. • 12.2 Assignment of Leasefor Security. Notwithstanding Section 12.1 above,LESSEE may assign, encumber or mortgage its interest in this LEASE or improvements on the Leased Land,by. deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land,provided that Lender shall be subject to all obligations ofLESSEE under the terms of this LEASE upon foreclosure. CITY shall famish Lender,at the address provided to CITY by Lender in writing,with notice of any default or • breach of LESSEE under this LEASE. Lender shall have the right(without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE)to make good such default or breach within thirty (30) days after written notice specifying such breach.Notwithstanding the provisions of Article 10 above,no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, . • a) If Lender, with respect to any default or breach other than a failure to make any required payment ofrent or other money,shall undertake within thirty(30)days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender .. fails to cure the default or breach within a reasonable period of time thereafter,and • b)•• If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any ofthe remedies afforded to it under Article 10 above so long as LESSEE • or Lender remains in possession of•the Leased Land and satisfies. LESSEE'S 15 • • • 37 • obligations under the terms ofthis LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee,purchaser or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to'an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this • LEASE as though the assignment had not taken place. .ARTICLE 13-LESSEE'S DUTY TO DEFEND/INDEMNIFY • LESSEE shall defend,indemnify and hold harmless CITY,its officials,employees,agents,and . contractors from any and all liability or claims for damages,including personal injuries,environmental damage, death and property damage arising out of or resulting from LESSEE'S use of the Leased Land or the use of the Leased Land by LESSEE's sublessees,assignees,agents, contractors or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY,its. officials,employees,agents,or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence,LESSEE shall notify CITY promptly in Writing of such action or proceeding. • ARTICLE 14-CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend,indemnify and hold LESSEE harmless from any and all liability or claims for damages,including personal injuries,death and property damage arising from the sole negligence or willful acts or omissions of CITY,its officials, employees,agents,or contractors. • ARTICLE 15-INSURANCE • 15.1 Minimum Insurance Requirements.Prior to commencement ofthe Lease Term or LESSEE'S occupancy ofthe.Leased Land,LESSEE shall procure and maintain,at LESSEE'S sole cost and expense,comprehensive commercial general liability insurance with limits of liability of' not less than TWO MILLION DOLLARS($2,000,000)for all injuries and/or deaths resulting . to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury,bodily injury,and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage inwards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS($2,000,000)is also required. LESSEE shall obtain owned and non-owned automobile liability insurance with limits of 16 • 38 • • • • • liability of not less than ONE MILLION DOLLARS($1,000,000)per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain workers'compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices,in : order to provide continuously throughout the term ofthis LEASE and any extensions hereo f a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type ofor extent ofuse ofthe Lease Land;increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in - assessing whether the minimum insurance requirements should be increased. CITY shall • notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty,(30)days'notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska,and acceptable to CITY(Best's Rating B+or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY,on forms approved by CITY,certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own • individual cost and expense,additional or other insurance as may be desired. The minimum • insurance requirements under this LEASE shall not act to limit LESSEE'S liability for any occurrence and shall not limit LESSEE's duty to defend and indcjnnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived To the extent permitted by law,LESSEE herebyreleases CITY, its elected and appointed officials,employees and volunteers and others working on behalfof CITY from any and all liability of responsibility to LESSEE or anyone claiming through or under-LESSEE by way of subrogation or otherwise, for any loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence ofthe CITY,its elected or appointed officials,employees or volunteers or others working on behalf ofthe CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE'S occupancy or use(including LESSEE'S occupancy or use prior to the Effective Date of this LEASE), and LESSEE'S policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY(including its elected and appointed officials, employees and volunteers and others working on b-half of CITY)during the time of LESSEE's occupancy or use LESSEE agrees that its policies of insurance will include such a clause or endorsement. 17 • • 39 • • • ARTICLE 16-CONDEMNATION If all or any part ofthe Leased Land is condemned.for a public use by any government agency or other duly authorized entity,CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking.Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority;provided,that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest,CITY shall transmit to LESSEE the amount of such specific damages so found,if any. Ifpart but not all of the Leased Land is condemned for public use,LESSEE shallmake a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land.IfLESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land,LESSEE may notify CITY in writing to this effect,and this LEASE shall then be terminated for all purposes effective fifteen(15) days from the date LESSEE sends such notice to CITY,or at such other later date as LESSEE shall specify in its notice,and such termination shall be treated in the same manner as a termination at the expiration of the'term of this LEASE. LESSEE shall, as a condition precedent to such termination,remove all encumbrances, debts and • liens to which the Leased Land is subject.If at the time of such partial taking for public use,LESSEE determines that such partial taking will not prevent it from continuing to operate,then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when,LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17'-ARBITRATION 17:1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties,shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform.Arbitration Act (AS 09.43.010 et.seq.),as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing,arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than Fifty Thousand Dollars and No/100s ($50,000) (exclusive of interest and costs): All demands for arbitration and all answering statements thereto that include any claim most contain a statement that the total sum or value in controversy,as alleged by the party making such demand or answering statement, is not more than Fifty Thousand Dollars and No/100s($50,000.) The arbitrator will not have jurisdiction,power,or authority to • consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim,dispute or other matter in question where the amount in controversy of any such claim,counterclaim,dispute or matter is more than Fifty Thousand Dollars 18 40 ) • and No/100s($50,000). The costs and expenses ofarbitration shall be shared equally by the parties,and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or • determine any claim based upon fraud, intentional misrepresentation,nor any claim based on conduct that is a felony crime in the.State of Alaska. • c) Written notice of requests for arbitration of disputes maybe served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be • determined by a single arbitrator selected from a list of not less than•five arbitrators obtained from the presiding.Superior Court Judge or other appropriate judicial officer in Anchorage,Alaska. The arbitrator shall be a person who(a)has not less than five (5)years legal experience in the State of Alaska prior to appointment;and(b)such .legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy ofthe list and shall be afforded a maximum of•ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party,commencing with the party demanding the arbitration,striking one name.from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage,Alaska or such other location as the parties may agree. Each party shall produce at the request ofthe other party,at • Ieast thirty(30)days in advance ofsuch hearing,all documents to be submitted at the• hearing and such other documents as are relevant to the issues or likely to lead to .relevant information. • e) In deciding the claim or dispute,the arbitrator shall follow applicable Alaska law,and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law,or entry of a decision that is not based on substantial evidence in the record, shall be additional•grounds for modifying or vacating an arbitration decision. ARTICLE 18-MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof;if any, LESSEE shall, at LESSEE's sole cost, risk and expense; maintain the Leased Land, including any improvements placed thereon by LESSEE,in as good condition as received or • constructed by LESSEE,subject to normal,non-abusive use. CITY,at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land,exclusive of improvements placed thereon by LESSEE,in order to prevent erosion,mitigate damage to plants and animals,or prepare the Leased Land for eventual development by LESSEE or others by grad ng,filling or • 19 • • 41 contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees,in advance and in writing,•to share such expense and risk LESSEE shall maintain in first class condition at all times all fire,pollution and other protective equipment,if any are placed on Leased Land. • 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty(30)days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk,unnecessary potential hazards,or a risk to the public interest(as distinguished from a business risk),.or if CITY is not satisfied with the proposed schedule ofrepairs either because ofthe delays therein or the scope ofthe repairs,then CITY . may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work As.soon as practicable following receipt of said engineer's determinations and recommendations,if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost,risk and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may . submit the matter to arbitration;provided,however,that pending the decision ofthe arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary,the"arbitration panel is • to give primary consideration to the safety and welfare of the Seward port facilities and the Citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards.or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or . reimburse CITY for such work at the option of CITY. ARTICLE 19-ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. • a) Condition of Site. LESSEE has had full opportunity to examine,the site for the presence of any Hazardous Material and accepts the Leased Land in"as is"condition. 20 42 • • • • LESSEE may elect,at LESSEE'S sole cost,to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY. Any other provision of this LEASE to the contrary notwith- standing LESSEE releases CITY from any and all claims,demands,penalties,fines, judgments, liabilities, settlements, damages, costs or expenses (including, without . limitation,attorney's fees,court costs,litigation expenses,and consultant and expert fees)arising prior to,during,and after the term ofthis LEASE,and resulting fromthe . use, keeping, storage or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest,or arising out of or resulting from LESSEE'S operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes,without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal,state or local agency or political subdivision or by . law or regulation. • c) Use of HazardOus Materials on the Site. • i) LESSEE shall not cause or permit any Hazardous Material to be brought upon,kept or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE'S authorized use of the Leased Land. • • ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph,and all containers therefor,shall be used,kept,stored and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material iii) LESSEE shall not discharge,leak or emit,or permit to be discharged,leaked or emitted, any material into the atmosphere,ground, ground water, sewer system or any body ofwater,if such material(as reasonably determined by City,or any governmental authority)does or may,pollute or contaminate the same, or may adversely affect the (a) health, welfare or safety of persons, whether located on the Leased Land or elsewhere;or(b) condition, use or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses • related to the use,storage and disposal of Hazardous Material kept or brought • on the Leased Land by LESSEE,its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or 21 • 43 r • �, ~l potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Except with regard to the soil cleanup area shown on Exhibit B and existing prior to the Effective Date,LESSEE shall defend, indemnify and hold CITY harmless from and against any claims, demands, penalties, fines, judgments,-liabilities, settlements, damages, costs or expenses (including, without limitation,attorney,consultant and expert fees,court costs and litigation expenses)of whatever kind or nature,known or unknown,contingent or otherwise,arising out of ' or in anyway related to: i) The presence,disposal,release or threatened release of any such Hazardous • Material which is on or from the Leased Land, soil, water, ground water, vegetation,buildings,personal property,persons, animals or otherwise; • ii) Any personal injury(including wrongful death)or property damage(real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened,settlement reached or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d)shall apply only ifthe acts giving rise to the claims,demands, penalties,fines,judgments,liabilities,settlements,damages,-costs or expenses (1)occur prior to or during the term ofthis LEASE;and(2)arise in whole or in part from the use of; operations on, or activities on the Leased Land by LESSEE or LESSEE'S predecessors in interest,employees,agents,invitees, contractors, subcontractors, authorized representatives, subtenants or any other persons. The provisions ofthis subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity • and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes,LESSEE shall be deemed the operator of any facility on the Leased Land. • f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic,ignitable,reactive,or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste hazardous waste,extremely hazardous waste or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion,for the purposes of this LEASE,the term Hazardous Material includes,without limitation,petroleum, including crude oil or any fraction thereof 22 44 • petroleum soaked absorbent material and other petroleum wastes. g) Environmental Law Defined.As used in this LEASE, Environmental Laws include any and all local, state and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time,relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards,, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality ofthe foregoing,Alaska Statutes Title 46,the Resource Conservation and Recovery Act of 1976,the Comprehensive Environmental Response,Compensation and Liability Act of 1980,the Clean Water Act,and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits • shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal,state or local government or agency required by any permit or Environmental Law,including reports ofany spill or discharge of Hazardous Material. The CITY,through the City Manager,may order LESSEE to immediately cease any operations or activities on the Leased Land ifthe same is being carried out without necessary permits,in violation of the terms of any • . permit or Environmental Law,or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately provide CITY with copies of all correspondence and notice, including .copies,of all reports between LESSEE and any state,federal or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. • ARTICLE 20-ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten(10)days'prior written request by the other party,execute,acknowledge,and deliver to such party,or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect(or,ifthere 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. • 23 ■ • 45 • ARTICLE 21-CONDITIONS AND COVENANTS • All the provisions ofthis LEASE shall be construed to be"conditions"as well as"covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22-NO WAIVER.OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term,covenant or condition ofthis LEASE or to exercise any right or remedy consequent upon a breach thereof;shall constitute a waiver of any such breach or ofsuch terms,covenants or conditions. No waiver of any breach shall affect or alter this LEASE,but each and every term, covenant and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. - • ARTICLE 23-TIME OF THE ESSENCE . Time is of the essence of this LEASE and of each provision. ARTICLE 24-COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last,unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. • ARTICLE 25-SUCCESSORS IN INTEREST Each and all ofthe terms,covenants and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26-ENTIRE AGREEMENT This LEASE contains the entire agreement ofthe parties with respect to the matters covered • by this LEASE, and no other agreement, statement or promise made by any party which is not contained in this LEASE shall be binding or valid: ARTICLE 27-GOVERNING LAW This LEASE shall be governed by,construed and enforced in accordance with the laws ofthe State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including without limitation, Chapter 7.05 ofthe Seward City Code. 24 46 ARTICLE 28-PARTIAL INVALIDITY If any provision ofthis LEASE is field by a court of competent jurisdiction to be invalid,void or unenforceable,the remainder of the provisions shall remain in full force and effect and shall in no _ • way be affected,impaired or invalidated. ARTICLE 29-RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by anythird person to create the relationship of principal and agent or of partnership or ofjoint venture or ofany association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE nor any acts of the parties,shall be deemed to create.any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30-INTERPRETATION The language in all parts oftbis LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. • ARTICLE 31-CAPTIONS • • Captions of the articles,paragraphs and subparagraphs ofthis LEASE are for convenience and reference only,and the words contained therein shall in no way be held to explain,modify,amplify or - aid in the interpretation,construction or meaning of the provisions of this LEASE. • •• ARTICLE 32-AMENDMENT • • This LEASE is not subject to amendment except in writing executed byboth parties hereto. ARTICLE 33-NOTICES - . • All notices,demands or requests from one party to another shall be delivered in person or be sent by mail,certified or registered,postage prepaid,to the addresses stated in this Article and to such • other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. . All notices,demands and requests from LESSEE to CITY shall be given to CITY at the following address: • • • 25 • • • 47 I • • City Manager CITY OF SEWARD PO Box 167 Seward,Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: , Alaska Logistics,LLC P.O. Box 3512 Seattle,WA 98124 ATTN: Allyn Long,Managing Member • --or-- • • Allyn Long-Alaska Logistics,LLC • 14018 Puget Sound Blvd Edmonds,WA 98206 Each party shall have the right,from time to time,to designate a different address by notice given in conformity with this Article. ARTICLE 34-FIRE PROTECTION LESSEE shall at its sole cost,risk and expense provide fire protection to its operations on the Leased Land and the dock, and fire prevention to industry standards for risks-to adjacent facilities . such that those risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion oftechnology in the field of fire prevention and control LESSEE'S obligations hereunder may vary during the term ofthis LEASE. • • ' 26 • 48 I -, IN WITNESS WHEREOF,the parties hereto have executed this Lease the dates herein set forth. • CITY: . LESSEE: • • CITY OF SEWARD ALASKA LOGISTICS,LLC By: Phillip Oates By: 2111;n1-,..0•11r- Its: City a II It ging Member Date: a/_ l �.s..�ei.. te: //aU/o, • ATTEST: ' 041491. A •�� ' SEAL ) • J: Lewis, •.tE'j► i.� e •, Clerk •.q' OF At.*** V � STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT .) • . THIS IS TO CERTIFY that on this__ day of rdair,lace 2009,beforeme,the undersigned, a Notary Public in and for the State of Alaska,personally appeared Phillip Oates,known to me and to me known to be the City Manager for the City of Seward, Alaska, and authorized to execute ' documents on its behalf and is the individual named in and,who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. . WITNESS my hand and notarial seal the day and year first hereinabove written. • 411116S0.. .-AdtkaL d. • A/a/JD- .a OIA/P}��JJ►►pt Notary Public in and for ' •'+. . wq 'T�*� ♦ • My Commission Expires: -9--23 - oa/l ♦ PIMA .: * ``� . 27 • • 49 • • STATE OF ALASKA ) )ss. THIRD JUDICIAL.DISTRICT ) THIS.IS TO CERTIFY that o l 0 day of\1Q�, ,2009,before me,the undersigned, • a Notary Public in and for the State of ��nally appeared Allyn Long,known to me and to me known to be the Managing Member of Alaska Logistics, LLC, a Washington limited liability company,and authorized to execute documents on its behalZ and is the individual named in and who executed the foregoing document on behalf of the company for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. `� • r, • w#i No ary ;,Ti,lic in : i,1 for Alaska 3 ' IPOTA ,-'3%2. 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I W W W w w u, u w W • w w • ....,1 1 W W W W V. y 4�. 1 0 .N L 7Q0— --'—+I 4 4 4, 4, 4, 4 I �' W W W w W W I W W W W W W W m • 1 • • 60'Driveway I • 1 Acre I • Lot 2 • • • • • Mustang Avenue. . • • Alaska Logistics 7400 8th Ave,South I Alaska Logistics Site Plan Proposal I bate Seattle,WA 98108 Job • I I 9 2 -09 206-767-2555 AL Seward Building • I Do Not Drawn By Rev, SMIC Block 3,Lot 2 l Scale els • ) • • • Environmental Compliance Plan • November 9,2009 Alaska Logistics,LLC plans to comply with all Federal,State and City of Seward Environmental Regulations that apply to its operation of a vessel repair and maintenance facility on property leased from the City of Seward. Environmental related items and a brief description of Alaska Logistics plan to comply with the regulations is as follows: Alaska Logistics will comply with the regulations requiring application for and approval of an Industrial Stormwater Discharge Permit. Alaska Logistics is familiar with the process of preparation of the Storm Water Pollution Prevention Plan, implementation of the Plan and the continued application of Best Management Practices,monitoring and testing. The site will be graded to force stormwater runoff into perimeter ditches. Appropriate Best Management Practices will be applied to slow the runoff rate and prevent the migration of silt and/or other pollutants outside the limits of the perimeter ditches. The gravel surface of the cite will serve to slow runoff and allow a significant amount of the stormwater falling on the site to be absorbed. The vessel repair facility will generate a significant amount of waste as the result of sandblasing portions of the vessels prior to repair and repainting. The sandblast grit and paint chips will be . collected by placing plastic tarps beneath the vessel and sweeping the grit and paint chips into piles daily for collection and placement in containers. It is anticipated that either barrels or • -supersacks will be used to hold the used blasting sand and paint chips. Once the barrel or supersacks are filled,they will be placed in a designated ocean cargo container for storage.This container will be shipped,on one of our southbound barges,to the Seattle area for disposal of the hazardous materials by one of the several commercial waste disposal firms. Discussion with the Anchorage office of ADEC has indicated that this method of disposal is acceptable and that ADEC will require information regarding the final point of disposal be provided to them. • The use of several types of diesel powered equipment on the site requires that diesel fuel,motor oil and'other petroleum products be used. Diesel powered equipment on the site will be fueled from a tank mounted on one of Alaska Logistics light trucks or by a local commercial vendc r if available. Spill prevention BMPs will be practiced and Spill Cleanup Materials will be • PO BOX 3512. • SEATTLE,WA 98124-3512 PHONE: (206) 767-2555 • PAX: (206) 767-5222 EMAIL: rNFOOIALASKA-i.OGISTICS-CUM • WEBSITE: WWW,/11.AEKA-i.OGISTHCS.COM • • 53 • maintained on the site at all times. Gasoline will not be stored on site and gasoline pow 1 ed vehicles will obtain fuel from local commercial fuel facilities. Used motor.oil, antifreeze and other hazardous materials associated with equipment opera on and maintenance,will be collected,placed in designated barrels,and stored in an appropria -ly marked cargo container on site. This container will be shipped, on one of Alaska Logis i s' southbound barges, to Seattle. Upon arrival in Seattle, the hazardous materials will be transferred to one of the commercial Haz-Mat disposal firms for transportation to its • al location and disposal in accordance with Federal,State and local requirements. Sanitary facilities at the site will be provided in the form of portable units furnished •d maintained by a local Seward firm. The number of portable units and frequency of mainten: Ce pumping will vary based upon the number of personnel working at the site during any given *l I I e frame and the recommendation of the portable unit provider. The portable units will be lo . ed in close proximity to the work areas on site to enable easy access by all workers. Marine Vessel Paint will be used in quantity at the site and will require disposal of � •ty containers and any spilled paint and/or related products. Spills will be cleaned up by immediately excavating the gravel beneath the vessel to a depth below the level of penetratio of the paint material. This excavated material will be placed in suitable containers and stored ,I a cargo container on site to await shipment on a southbound barge to Seattle. Upon arri • in Seattle, the hazardous material will be transferred to one of the commercial disposal firms for transportation to its final location. Empty paint buckets will be placed in a marked cargo container with the lid removed. This i. to allow the paint residue in. the bucket to dry and reduce any risk of spillage or o'i er contamination. Once the residue in the bucket is dry,the lid can be replaced. These empty p:int buckets will be allowed to accumulate in the cargo container until shipment on a southbo i d barge to Seattle and transfer to a commercial disposal firm for handling in accordance 'th • Federal,State and Local regulations. The above items are some of the means by which Alaska Logistics plans to prevent damag- to the environment as the result of its vessel maintenance and repair facility to be placed on a.ite leased from the City to Seward. Other items will be identified in the course of construction •d operation of the facility. Once identified, a specific plan for handling these materials wil be implemented. • Material Safety Data Sheets will be maintained at the site and personnel will be made awar of the dangers related to hazardous materials that may be in use. All personnel will be is ed personal protective equipment appropriate to the duties they perform and the hazardous mate i-als that they may encounter in the course of performing their assigned tasks. ' PO BOX 3512. • SEATTLE.WA 98124-3512 PHONE: (206) 767-2555 • FAX: (206) 767-5222 EMAIl.: INFOOAI.A5KA-LOGISTICS.COM WEDSTTE: WWW.AI.ASK11-LOOTSTICS.COM 54 SS • • • MIOJ'SOL.LSIJO'l•V)ISV'LV•MMAA :H.LISHHM IVO:I'SDILSIJO'1-VMSV'1V @OdNI °1IVFIH ZZZS-19L (90Z) °XVa• 555Z-L9L (90Z) :HNOHd ZLS£•1•Z186 VIA 'IiT.I..LVHS • 'ZI56 XOH Od • • • Jar._ • Ia�Basy�j .�� :- f `Pan Ps An s01I' •siolaquoogns s;cjo asoi pus saaioidara sLi 3o 43s pus wail a Aim pauwauoo AIasinagisd si sogslSo i Maly 'punt iius jo sue. gejax pi$neaS 30 40 Pug OWlS IPJ0P0A IIE VW 4CId1000 0;algid s3g48o'¢3ISRIV`UOMPPB QI'fit 60118112R13111 pas . i iassan s1 3o uogalado oin Soap suogein2u p3gcnul101IAIIO paws jo pue awlS I Pall As Iptns Itidluoo o;Slnuusid si sogs!o7 Miseitrr `urea pains sv (. Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-046 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE KENAI PENINSULA HOUSING INITIATIVE (KPHI), DONATING APPROXIMATELY 1.7 ACRES OF THE SOUTHERN PORTION OF LOT 11A, FORT RAYMOND SUBDIVISION REPLAT NUMBER 1, FOR THE SOLE PURPOSE OF DEVELOPING A NON-INCOME BASED INDEPENDENT SENIOR HOUSING FACILITY UPON CONDITION OF KPHI BEING AWARDED ALL OTHER NECESSARY FUNDING FOR THE PROJECT DEVELOPMENT AND COMPLETION WHEREAS, the lack of non-income based senior housing in Seward has been identified as a leading cause of seniors needing to leave the community in order to find adequate living facilities; and WHEREAS, relocating away from family, friends, and medical and social support systems is especially traumatic for our seniors; and WHEREAS, a dedicated group of local volunteers has for years explored options for developing an appropriate non-income based senior living facility in Seward, and has most recently partnered with the Kenai Peninsula Housing Initiative (KPHI) to formalize and further their effort on behalf of the community;and WHEREAS, KPHI is a private non-profit corporation who has successfully developed housing projects across the Peninsula serving seniors, special needs, and low income populations;and WHEREAS, KPHI's experience and history suggest that they are the most likely entity to successfully procure grant funding to develop a senior housing facility in Seward; and WHEREAS,key to a successful grant application is a commitment of site control for the location of the proposed facility; and WHEREAS, KPHI proposes to develop the facility in two phases; each to be a five or six-plex structure; and WHEREAS, KPHI desires to accomplish the replatting necessary to delineate the southern portion of Lot 11A, Fort Raymond Subdivision,to acquire this property and to develop the senior housing facility, all subject to grant award(s) sufficient to fund the project; and WHEREAS, the City desires to support and facilitate where feasible senior housing in 56 CITY OF SEWARD,ALASKA RESOLUTION 2015-046 the community; and WHEREAS, Lot 11A,Fort Raymond Subdivision is currently zoned Park (P), the newly created 1.7 acres parcel would require a rezone and Land Use Map amendment; and WHEREAS, the Municipal Lands Inventory and Management Plan (2014 update) supports disposal of Lot 11A Fort Raymond,with a sound development plan;and WHEREAS, the Planning and Zoning Commission held a public hearing on May 5, 2015 and approved P&Z Resolution 2015-11 with findings as attached hereto, recommending Council approve the donation of 1.7 acres of Lot 11A, Fort Raymond Subdivision, Replat 1, for Senior Housing with conditions; and WHEREAS, donating land constitutes a less than fair market value transaction, and requires the Council to find such a transaction to be in the public's interest as a condition of authorizing the transfer; and WHEREAS, prior to the transfer of title to the land, the City shall require KPHI, to complete to the satisfaction of the City,the replatting,rezoning, and proof of financing sufficient to complete the development. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council hereby authorizes the City Manager pursuant SCC 7.05.120 and 7.05.150 to execute, upon completion of necessary replatting, rezoning, and proof of financing for the development, the transfer of title for the property referenced here as the southern portion of Lot 11A, Fort Raymond Subdivision, Replat No. 1; approximately 370 feet from the southern lot line to the north, compromising a total of approximately 1.7 acres, to the Kenai Peninsula Housing Initiative (KPHI) for less than fair market value and for the sole purpose of developing a non-income based senior housing facility. Section 2. The Seward City Council further finds the KPHI agrees to complete at its own expense all zoning, replatting and rezoning actions necessary for the development of the property; and to provide proof of financing sufficient for the project as prior conditions of the transfer of title; and to pay all closing costs and fees for said property as consideration to the City for the properties. Section 3. The Seward City Council further finds the disposal of the parcel, as described in Section 1 above, to be in the best interests of the citizens of the City of Seward and that the public interest shall be served by disposing of the property interest for less than the fair market value, in accordance with the recitals above which are incorporated herein. No appraisal is 57 CITY OF SEWARD,ALASKA RESOLUTION 2015-046 necessary pursuant to SCC 7.05.150. Section 4. The Seward City Council further find that if the action items in Section 2 above are not completed by May 26, 2020 the authorization to transfer the land lapses unless further authorized by the City Council. Section 5. The Seward City Council further finds that pending the transfer of title, the lapsing or the re-authorization of this proposed transfer, the land remains available for use by the City. Section 6. 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 26th day of May, 2015. THE CITY OF SEWARD,ALASKA Jean Bardarson,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney,CMC City Clerk (City Seal) 58 Council A',genda Statement e` ,ov se Meeting Date: May 26,2015 4`4,41 :11 , Through: Jim Hunt,City Managl ;��� QK • From: Donna Glenz,Planners Agenda Item: Authorizing the City Manager to enter into an Agreement with the Kenai Peninsula Housing Initiative(KPHI)Donating approximately 1.7 Acres of the Southern portion of Lot 11A, Fort Raymond Subdivision for a non- income based Senior Housing Facility BACKGROUND &JUSTIFICATION: A lack of non-income based senior housing in Seward has been identified as a leading,cause of seniors leaving the community in order to find adequate facilities. Relocating away from family, friends, and medical and social support systems is especially traumatic for our seniors. A dedicated group of local volunteers has explored options for developing an appropriate non- income based senior living facility in Seward, and has most recently partnered with the Kenai Peninsula Housing Initiative (KPHI) to formalize and further their effort on behalf of the community. KPHI is a private non-profit corporation that has successfully developed housing projects across the Peninsula serving senior, special needs, and low income populations. KPHI's • experience and history suggest that they are the most likely entity to successfully procure grant funding to develop a senior housing facility in Seward. Key to a successful grant application is a commitment of site control for the location of the proposed facility. KPHI proposes to develop the facility in two phases; each to be a five or six-plex. They desire to do the replatting necessary to delineate the southern portion of Lot 11A, Fort Raymond, to acquire this property, and to develop the senior housing facility, all subject to grant award(s) sufficient to fund the project. The City desires to support and facilitate where feasible senior housing in the community. On March 23, 2015 the Seward City Council held the first of two public hearings on Resolution 2015-020,regarding a request from KPHI for the donation of 1.8 acres of the northern portion of Pat Williams Park for the development of a senior housing facility. Following the public hearing,the Council amended the original resolution, downsizing the area and amount of land to the northwest area of Pat Williams Park consisting of approximately .7 acre. The Council also requested the Planning and Zoning Commission hold a public hearing on April 7, 2015 to provide additional public comment time and provide a recommendation to Council on Resolution 2015-020, as amended. Following the public hearing on April 7,2015 the Planning and Zoning Commission voted to fail P&Z Resolution 2015-08, thereby recommending the council fail Resolution 2015-020. The Commission's recommendation was moved forward to Council on April 13, 2015 where the Council failed Resolution 2015-020 and recommended an alternate piece of property owned by the City. The Council directed the Planning and Zoning Commission to hold a public hearing and provide recommendation on the disposal of the southern portion of Lot 11A, Fort Raymond, Replat Number 1,containing approximately 1.7 acres. 59 On May 5, 2015 the Planning and Zoning Commission held a public hearing, reviewed and discussed the recommendation on the disposal of the southern portion of Lot 11A, Fort Raymond and declared the following findings: A. The use as a non-income based senior housing facility is consistent with the purpose of this chapter(the Seward Zoning Code)and the purposes of the zoning district Finding: This condition can be met: Lot 11A, Fort Raymond is currently zoned Park. The zoning could be amended by City Council Ordinance to allow the senior housing facility (multi-family residential) by Conditional Use Permit(CUP) within the following zoning districts: Multi-Family(R3); Urban Residential (UR); Office Residential (OR); or Auto Commercial (AC). This rezone would be allowed by Seward City Code §15.01.035. Amendments. Once the rezone was enacted by the City Council the use as a non-income based senior housing development would be allowed by CUP. B. The value of adjoining property will not be significantly impaired Finding: This condition can be met. The adjoining properties to the north include the remainder of Lot 11A,used as the Forest Acres Park and further out a mix of single family homes and undeveloped vacant land. To the west is the large City owned parcel,zoned Institutional,leased to the US Army for a resort and lodging. Areas to the southwest and south include the City owned parcel previously leased to the US Air Force as a resort and campgrounds and a vacant parcel abutting the Seward Highway,both parcels are zoned Institutional. The parcel to the east is vacant and currently used for campgrounds, also zoned Institutional. There is no indication the proposed senior housing facility will negatively impair the value of any adjoining properties. C. The proposed use is in harmony with the City adopted plans. 1. Comprehensive Plan, (2020—approved by Council August 8,2005) Finding: This condition can be met. While not all areas of the 2020 Comprehensive Plan support Park land be rezoned and used for development,other areas of the plan support the project and housing needs. 2. Strategic Plan, (approved by Council Resolution 99-043) Finding: This condition can be met. The Strategic Plan supports expanding the availability of affordable, diverse, year round housing and encourages the construction of residential housing at all market levels. 3. Municipal Lands Management Plan (adopted by Council Resolution 2014-095) Finding: This condition has been met. The Municipal Lands Management Plan supports the disposal of Lot 11A, Fort Raymond with a sound development plan. SCC 7.05.120 and 7.05.150 allows the Council to dispose of City land by negotiation, public auction or sealed bid and at less than fair market value with findings the public interest will be served. Disposal of this parcel for the development of non-income based senior housing fulfills the intent of a sound 60 development plan. D. Public Services and facilities are adequate to serve the proposed use Findings: This condition has been met. Access to the parcel will be from the public right-of-way(ROW) of Dimond Boulevard. All public utilities of water, sewer, and electric are available in the adjacent ROW. If any • additional utility needs arise during development they will be the sole responsibility of the developer. E. The proposed use will not be harmful to the public safety,health or welfare. Findings: This condition can be met. The applicant is required to obtain a City of Seward Building Permit and meet all commercial building code and life safety requirements. Upon review of the above findings for the disposal of this parcel for the development of non- income based senior housing, the Commission approved P&Z Resolution 2015-011, recommending the disposal of the southern portion of Lot 11 A,Fort Raymond,with conditions. The parcel zone designation is currently Park, and rezoning for the lot newly created through replat would be required. Donating land constitutes a less than fair market value transaction, and requires the Council to find such a transaction to be in the public's interest as a condition of authorizing the transfer. As a condition of transfer of title to the land, the City will require that replatting, rezoning, and proof of financing sufficient to complete the development are completed to the satisfaction of the City. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (2020, approved by Council August 8,2005) 1) Recreation We value diverse, year-round, indoor and outdoor recreational opportunities and facilities for residents and visitors of all ages and socioeconomic backgrounds. 2) Recreation 3.6 1. 3.6.1 Improve, expand and diversify year-round parks and X recreational opportunities for residents and visitors. • Sustain current zoning for City park lands. (page 25,Bullet 6) 3.6.1.2 • Ensure that Municipal land acquired for or converted to long- term permanent park or recreational uses shall be officially dedicated as park land. (Bullet 3,Page 25) Comprehensive Plan(2020,approved by Council August 8,2005): 3.2.1 Promote residential and commercial development within the 2. city of Seward in accordance with community values. (page 19) X 3.3.1.1 Support a range of housing choices that meet the needs of people in various income and age groups.(page 22) 61 Strategic Plan (Approved by Council Resolution 99-043): Pursue the community's vision through rigorous implementation of the Comprehensive and Land Use Plans • Ensure that all legislative and administrative decisions are consistent with the goals of the Strategic and Comprehensive Plans (Page 10&Bullet 3) • Expand availability of affordable, diverse, year-round 3. housing. X o Seward has a wide range of housing alternatives to meet the varied needs of Seward's long term and seasonal residents(Page 18,Bullet 3) • Promote Residential and Commercial Development inside the City. (Page 9,Bullet 2) o Encourage construction of residential and seasonal housing at all market levels(Page 9,Bullet 2-1) Municipal Lands Management Plan: (Adopted by Council Resolution 2014-095) 2300 Dimond Blvd (between Sea Lion & Hemlock Avenues) Lot 11A, 4. Fort Raymond Subd Replat, X Description: Park parcel located on the east side of Dimond Blvd. Recommendation: Continue use as a public park. Sell with a sound development plan. (Page 20) Seward City Code SCCP.05.120"The city council may acquire or dispose of an interest in real property by negotiation,public auction,or sealed bid." SCC. 7.05.150, "(a) The city shall not sell any real property interest without first making an appraisal of the fair market value of that 5. interest, unless the city council finds that the public interest will not be X served by an appraisal. (b) If an appraisal is made,the property interest shall not be disposed of for less than the appraised fair market value, unless the city council finds by resolution that public interest will be served by disposing of the property interest for less than the appraised fair market value." INTENT: Authorize the City Manager to enter into an Agreement with the Kenai Peninsula Borough Housing Initiative(KPHI)donating approximately 1.7 Acres of the southern portion of Lot 11A, Fort Raymond Subdivision, Replat Number 1 for the sole purpose of developing an independent senior housing facility. FISCAL NOTE: Lot•11A of Fort Raymond Subdivision has an assessed value of$1,729,500 for the entire 4.77 acre property, as determined by the Kenai Peninsula Borough. The pro-rated value of the 1.7 acres being donated to KPHI is $616,384. The property is not currently on the tax rolls. Approved by Finance Department: Z:) Z ATTORNEY REVIEW: Yes: No: X 62 No attorney review is required for the approval of donating the southern portion, approximately 1.7 acres of Lot 11A,Fort Raymond for the development of a senior housing facility. RECOMMENDATION: Council approve Resolution 2015- 004k9 Authorizing the City Manager to enter into an agreement with the Kenai Peninsula Housing Facility (KPHI) donating approximately 1.7 acres of the Southern portion of Lot 11A, Fort Raymond Subdivision for the sole purpose of developing an independent senior housing facility upon condition of KPHI being awarded all other necessary funding for the project development and completion. 63 Kenai Peninsula Borough Property Report - 14502603 745 ; Wed May 6 2015 06:17:57 PM alt ^� �i x It, l '�l .4... 3 i L \ ,:•.1". _ ! i\ l �r`t 1. I • F w i :, ;i , I ! , 1■ Parcel Number: 14502603 Address: 2310 DIMOND BLVD Owner: SEWARD CITY OF fN PO BOX 167 SEWARD,AK 99664 Tax Area: 40-SEWARD CITY Usage Code: 100 Residential Vacant DISCLAIMER: The data displayed herein is neither a legally recorded map nor survey and should only be used Acreage: 4.77 for general reference purposes. Kenai Peninsula Borough Land Value: $1,729,500 assumes no liability as to the accuracy of any data displayed herein. Original source documents should be Improvement Value: $0 consulted for accuracy verification. Assessed Value: $1,729,500 Taxable Value: $0 Legal Description: T 1N R 1W SEC 34 SEWARD MERIDIAN SW 0870012 FORT RAYMOND SUB REPLAT NO 1 LOT 11A Number of Structures:1 Structure# Year Built Square Ft Structure Type 64 Sponsored by: Staff CITY OF SEWARD,ALASKA PLANNING AND ZONING COMMISSION RESOLUTION 2015-11 A RESOLUTION OF TTHE SEWA C TY� OF PLANNING SEWARD,vD AL ASIKA, COMMISSION OF RECOMMENDING CITY COUNCIL APPROVE DONATING RAYMOND APPROXIMATELY 1.7 ACRES OF LOT 11A, FORT SUBDIVISION, RE FACILITY WITH CONDITIONSELOPMENT OF A AT NUMBER 1, FOR SENIOR HOUSING WHEREAS, Seward City Council held the two public hearings on Resolution 2015-020, regarding a request from Kenai Peninsula Housing Initiative(KPHI) for the donation of 1.8 acres of the northern portion of Pat Williams Park;and WHEREAS, following the public input regarding the selected location of Pat Williams Park, the Council failed Resolution 2015-020 and suggested another location, the 1.7 acres, Lot 11A, Fort Raymond Subdivision,Replat Number 1;and a public WHEREAS, the Council requested Council aereviewland recommendation Commission o the Lot 11A, Fort hearing on May 5,2015 and provide Subdivision suggested location;and WHEREAS,the Council will hold a public hearing on May 26,2015; and WHEREAS, the draft Council Resolution is attached hereto for the Commission's review and recommendation. NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning Commission that: Section 1. The Planning and Zoning Commission has reviewed the request by City Council to dispose of approximately 1.7 acres of the south section of Lot 11A, Fort Raymond Subdivision, Replat Number 1, for development of a senior housing facility with conditions and declared the following Findings: A. The use as a non-income based senior housing facility is consistent with the purpose of this chapter(the Seward Zoning Code)and the purposes of the zoning district. Finding: This condition can be met: Lot 11A, Fort Raymond is currently zoned Park. The zoning could be amended by City Council Ordinance to allow the senior housing facility (multi-family residential) by Conditional Use Permit(CUP) within the following zoning districts: Multi-Family (R3); Urban Residential (UR); Office Residential (OR); or Auto Commercial (AC). This 65 Seward Planning and Zoning Resolution 2015-11 Page 2 of 3 rezone would be allowed by Seward City Code §15.01.035. Amendments. Once the rezone was enacted by the City Council the use as a non-income based senior housing development would be allowed by CUP. B. The value of adjoining property will not be significantly impaired Finding: This condition can be met. The adjoining properties to the north include the remainder of Lot 11A,used as the Forest Acres Park and further out a mix of single family homes and undeveloped vacant land. To the west is the large City owned parcel, zoned Institutional, leased to the US Army for a resort and lodging. Areas to the southwest and south include the City owned parcel previously leased to the US Air Force as a resort and campgrounds and a vacant parcel abutting the Seward Highway, both parcels are zoned Institutional. The parcel to the east is vacant and currently used for campgrounds, also zoned Institutional. There is no indication the proposed senior housing facility will negatively impair the value of any adjoining properties. C. The proposed use is in harmony with the City adopted plans. 1. Comprehensive Plan, (2020—approved by Council August 8,2005) Finding: This condition can be met. While not all areas of.the 2020 Comprehensive Plan support Park land be rezoned and used for development,other areas of the plan support the project and housing needs. 2. Strategic Plan, (approved by Council Resolution 99-043) Finding: This condition can be met. The Strategic Plan supports expanding the availability of affordable, diverse, year round housing and encourages the construction of residential housing at all market levels. 3. Municipal Lands Management Plan (adopted by Council Resolution 2014-095) Finding: This condition has been met. The Municipal Lands Management Plan supports the disposal of Lot 11A, Fort Raymond with a sound development plan. SCC 7.05.120 and 7.05.150 allows the Council to dispose of City land by negotiation, public auction or sealed bid and at less than fair market value with findings the public interest will be served. Disposal of this parcel for the development of non-income based senior housing fulfills the intent of a sound development plan. D. Public Services and facilities are adequate to serve the proposed use. Findings: This condition has been met. 66 Seward Planning and Zoning Resolution 2015-11 Page 3 of 3 Access to the parcel will be from the public right-of-way (ROW) of Dimond Boulevard. All public utilities of water,sewer,and electric are available in the adjacent ROW. If any additional utility needs arise during development they will be the sole responsibility of the developer. E. The proposed use will not be harmful to the public safety, health or welfare. Findings: This condition can be met. The applicant is required to obtain a City of Seward Building Permit and meet all commercial building code and life safety requirements. Section 2. The Planning and Zoning Commission recommends, based on the above findings,the Seward City Council approve the disposal of the south approximate 1.7 acres of Lot 11A, Fort Raymond Subdivision, Replat, Number 1 with conditions, for development of a non- income based senior housing facility. Section 3: This resolution shall take effect immediately upon adoption. Passed and approved by the Seward Planning and Zoning Commission this 511% clay of May 2015. • THE CITY OF SEWARD / i A.Ai.f✓ , =-�.A 01 Cind Ec-1-nd, hair AYES: Swann,Coulter,Seese, Fleming,Anderson, Ecklund NOES: None ABSENT: None ABSTAIN: None VACANT: One 't .' C':.. ••-.. A"1"I'EST: �" ,. 4 : l: ' 4 I itA ' . ., .:. .... --,-- i : C " �f , : ' Cit.;Clerk °4..';(t ay.Sti11 ' wya. 67 City of Seward,Alaska Planning Conunission Minutes May 5, 2015 Volume 7, Page 139 Resolution 2015-11 of the Seward Planning and Zoning Commission of the City of Seward, Alaska, recommending City Council approve donating approximately 1.7 acres of Lot 11A, Fort Raymond Subdivision, Replat Number 1,for development of a senior housing facility with conditions Glenz gave a brief history of the Kenai Peninsula Housing Initiative request for the donation of property for the development of a senior housing facility. She noted that Council had requested the Commission hold a public hearing and provide a recommendation on the donation of the southern portion of Lot 11A, Fort Raymond Subdivision. Glenz pct.i.7 >qut the visual location and approximate proposed lot lines to delineate the approximat acres on the wall maps provided. Glenz described the current usage of the parcel, and p rtion th .uld be donated for ' development. She noted staff had received several r el ", -s regarding` op,location and the floodplain status. All written comments had b?,''' f>" included in the Ph i io . and Zoning Commission meeting packet. ' Notice of public hearing bein g posted and published 0 ni aired by law was noted and the ,...,,,. public hearing was opened. '4, Jonathan Sewall, inside City, said he did i• /J,;; ,_ to senior hes ,, , but believed there were better locations available. Sewall said he ha.' one-'"/ e t Fort R.%'"` and debris on the land and the potential wetland issues. The_U.S. Air Fo e re',.':'z ' h area would be more suitable, as well as the former Wesley ,4 a 'tation and C', 'enter loc •n on First Avenue. 4;: 'emu Candy Norman, ou;s . City B If ved the wo 'ng group had already considered the more obvious possible locatio kii ,orma i..aid the senior sing model would be designed for easy use by those with limited mobi '' ,*e ' y' t Ilp,'.'low impact project. Ecklund ,, ed if the ✓+a, . fund"l 4eadline for the proposed development. ' w Nor�an z ' she believe t nding Oflication deadline for Kenai Peninsula Housing Initiative was June 141, . She did no °-lieve the same source of funding would be available in 2016. Sewall asked if t!",.,.ropoW facility would be similar to the senior housing facility on Snug Harbor Road in Co E ' ,., `%'ing• Ecklund said the coma'.ny that managed the Cooper Landing development was the same company seeking to develop in Seward. Kathleen Barkley, inside City, said the U.S. Air Force recreation camp area had been considered for the proposed senior housing facility, and there were too many issues related to infrastructure, such as underground fuel tanks. Barkley said the current proposed location was suggested by City Council member David Squires, the former City Fire Chief. She believed Squires had given adequate consideration to the location before making the suggestion. 68 Planning Commission Minutes City of Seward,Alaska Volume 7, Page 140 May 5, 2015 Motion (Fleming/Swann) Approve Resolution 2015-11 Seese, for the purpose of discussion, suggested that the University of Alaska Fairbanks property near Third Avenue and Washington Street be considered for the proposed senior housing facility. Glenz said that while the location suggested by Seese would be more than adequate, the possibility of gaining a donation from the university was remote. In response to Anderson, Glenz pointed out that since the parcel,,} >t' larger than one acre, City p �o Commercial may be the Code allowed for a zoning designation changes. Glenz sugges�� fore gaining control of appropriate zone. Glenz also said the developer had to secu. undi t; g g the property,and that platting and rezoning were required . ore'developeei a Fleming said that the City owned large amounts of d, and the proposed semq housing was a good public use Fleming encouraged the public t., (4 ` ,, its sup t. In response to Ecklund, Glenz said there was no [loos „,r designation for the parcel. Glenz directed the Commission to a flood zone-I ap in the packet. Anderson said she believed Kenai Penins °s,, 'r 1, ,, Initiative _<' e process of testing the soil at the site. Ecklund asked City Parks^ reation Dep a' nt directs arin Sturdy to discuss the current use of the property. r• Sturdy said the propose 4.tion 1:s in need of b }:'`cleaned up because of debris, and that the area was underutilized as p :1 na dlTid oy 41ow amping use did occur there during summer. ' *` pole top rescue training conducted by the City Electric Anderson sked abo , ferendt top P Depa ;,, s t In respons``3iia nderson, GI: %i said a climbing pole was utilized annually for training, but future %r' E,r,ther location. Glenz pointed out the approximate location of the training coul• .<�� -,place at p pole. ,, A member of the au (''e asked to speak. The Commission agreed to suspend the rules. Diane McRae, inside City. McRae said the proposed location was more than suitable for a senior housing project. She said the land near the highway was somewhat wet, but the property under consideration did not have flooding issues. The Chair noted the Commission was back on the rules. Motion Passed Unanimous 69 „ ,, , , ..„4.4de ..... it... r t 4._,r, i4; gt 7774, :. ., k. .,;i,:itiorpfilit if : ,,,-;:.ir-1--.7-::, . : ,., -t 4. . ,. .. . . ... . . , i . ..... :.,,ii,.. :•4.0"., .., ,, , . ,.. . - , ... , , . ,,... , . 4, EllTig • - . ''I: ., -...,. -” " I .Itor a1 + , i Tom. 1 V-l r.',.,.,r fit. 0 .!rM1",...t0 r ,`. C v 4 >< r ".'"' W> Lot 12A, R.+ ` � ' . i". .. .�. Fort Raymond �. I•q `#' 1 Y .,.,, y ; %. - i i . ..0/ p votra Moto Nivil. . — ...., _ „, .' ' Lot 11A, now--, . r ..-..�1 . - f a Fort Raymond f�';, , _ •• i t _ . 0.„;,,,.., ..,-...,....3 •,:-.slitit:;- .. ,..,, . .. , . : „-,:i ? 0 . ,= ...., • .1 tr lilt Ai.'" 'i ...* e ,....4_,:• .7 . 4 f - - ' `. 'E fF x ` rr Approximate North '- �` .4,,,.,..:., fl •. –I ► lik . Lot Line Proposed ;.' .•. _ A". by Council , . ., art r . , _ W i t P ' �, , 0 *Pi !�Y.,7in, .A,4U+ 'y# irtrco'_ 'i .- it te :.. xn—,,0..0.;, Approx 1.7 acres t,, K• f'• .....„,tiot, . _ . . '''''' 1 r , : j� 7 ' ..' t ; e.-. t. ,kle1/4., _ . ,- , .. ., . a „. , ,_ .. ,_ . . r; , ,,, . .... „„tat . ..',..:1.z,-`41# , . 1, r' ' ” �T„"„ •.•� Z fir`. * M„....., .. ullir, .- . 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' - .... 1111:17. j.tO 41 . 4, ,'/A4,,. , - • , 44 , - " •••• ,- Sponsored by: Seward Historic Preservation Commission CITY OF SEWARD,ALASKA HISTORIC PRESERVATION COMMISSION RESOLUTION 2015-003 A RESOLUTION OF THE SEWARD HISTORIC PRESERVATION COMMISSION OF THE CITY OF SEWARD, ALASKA, RECOMMENDING CITY COUNCIL APPROVE DONATING APPROXIMATELY 1. 7 ACRES OF LOT HA, FORT RAYMOND SUBDIVISION, REPLAT NUMBER 1, FOR DEVELOPMENT OF A SENIOR HOUSING FACILITY WITH CONDITIONS WHEREAS, the Council requested the Historic Preservation Commission to review the proposed transfer following a Planning and Zoning Commission held a public hearing, and provide Council recommendation on the Lot 11A, Fort Raymond Subdivision suggested location; and WHEREAS, the City of Seward, through its Historic Preservation Commission holds ongoing responsibilities as a Certified Local Government (CLG), which require provision for recognition of the historically significant activities, structures and the people who helped build Seward. It is the responsibility of the Seward Historic Preservation Commission to assist with the continuing education of citizens regarding local historic preservation and community history; and WHEREAS, the Powers and Duties of the Historic Preservation Commission (Seward City Code 2. 30.425), include: 2) Survey and inventory community historic architectural and archaeological resources within the community, 4) Act in an advisory role to other officials and departments of local government regarding the identification and protection of local historic and archaeological resources, and 7) Review local projects and recommendations about the effect on properties identified in the local historic preservation inventory;and WHEREAS, the Second World War was a major formative event in Seward's history, and Fort Raymond was the major facility of that war within Seward City limits; and WHEREAS, Lot 11A, Fort Raymond Subdivision lies within the perimeter of the original Fort Raymond; and WHEREAS, it is unknown if neither a surface nor subsurface survey of items of possible historical or archeological importance on the Fort Raymond tract has not been done; and 72 WHEREAS,the Seward Planning and Zoning Commission found that proposed use is in harmony with the City adopted plans: 1) Comprehensive Plan (2020—approved by Council August 8, 2005), 2) Strategic Plan (approved by Council Resolution 99-043), and 3) Municipal Lands Management Plan(adopted by Council Resolution 2014-095);and WHEREAS,the Council will hold a public hearing on May 26,2015; and NOW, THEREFORE, BE IT RESOLVED by the Seward Historic Preservation Commission that: Section 1. The Historic Preservation Commission has reviewed the proposed action by City Council to dispose of approximately 1. 7 acres of the south section of Lot 11A, Fort Raymond Subdivision, Replat Number 1, for development of a senior housing facility with conditions and declared the following Findings: A. This property is located within an area of known historic relevance to U.S. Army activities during the Second World War so it falls within the responsibilities of the Seward Historic Preservation Commission Powers and Duties to survey, inventory, and review. B. We recommend that the City of Seward should, either directly or indirectly, undertake a survey of possible historic or archeological importance of the proposed Lot 11A before disposal. This should be consistent with the guidance given within Section 106 of the National Historic Preservation Act. C. The Historic Preservation Commission, along with several other national historic preservation organizations, believes that a cautious approach is often the most effective way to preserve a community's history; and maximize its benefits to residents. Section 2. The Historic Preservation Commission recommends support of City of Seward Resolution 2015-046 with consideration to the preceding Findings. Section 3.This resolution shall take effect immediately upon enactment. PASSED AND APPROVED by the Seward Historic Preservation Commission of the City of Seward,Alaska,this 14th day of May 2015. THE CITY OF SEWARD, ALASKA Linda Lasota,Chair AYES: Kurtz,Erickson,French,Hepworth, Roach', Chair Lasota NOES: ABSENT: Hedman ABSTAIN: 73 ATTEST Johanna Kinney,CMC City Clerk (City Seal) 74 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-047 A RESOLUTION OF THE CITY COUNCIL OF SEWARD, ALASKA, AFFIRMING THAT THE COUNCIL MUST AUTHORIZE THE SEWARD COMMUNITY HEALTH CENTER'S 2015 US DEPARTMENT OF HEALTH AND HUMAN SERVICES' HEALTH INFRASTRUCTURE IMPROVEMENT PROGRAM GRANT APPLICATION WHEREAS, the City Council held a work session with representatives from Providence Seward Medical and Care Center(PSMCC), Seward Community Health Center(SCHC), and the public on March 23,2015; and WHEREAS, the work session considered different expansion/improvement models for the City-owned shared use medical facility, and potential funding sources for the projects, particularly the current open application period for a US Department of Health and Human Services' Health Infrastructure Improvement Program (HIIP) grant and the related steps and components required by the application;and WHEREAS, at its April 13, 2015 regular meeting the Council passed and approved Resolution 2015-029, authorizing the SCHC to prepare and submit the grant application on its behalf for up to one million dollars ($1,000,000), and contingent upon the grant being awarded, committing the City to moving forward with the proposed project and providing any additional funds necessary to complete the project,all of which are conditions of the grant application; and WHEREAS,the City serves as the public entity for receiving and disbursing federal grant funds utilized by the SCHC, and as the legislative and appropriating body of the City, Council approval is necessary for those grant applications; and WHEREAS,such approval may be rescinded prior to submittal of the application. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council directs the City Manager to bring forward a resolution by August 10, 2015 to formally authorize the Seward Community Health Center's submission of the US Department of Health and Human Services' Health Infrastructure Improvement Program grant application. Section 2. This resolution shall take effect immediately upon adoption. 75 Agenda Statement r aF SEA y Meeting Date: May 26,2015 u, qs+ To: City Council '�LAsV From: Jim Hunt, City Manager 4 4 Agenda Item: To affirm and make specific that the Seward Community Health Center's application for a Health Infrastructure and Improvement grant,prepared pursuant to City Council Resolution 2015-029,will be reviewed by Council prior to submission,and that submission must be authorized by resolution of Council BACKGROUND&JUSTIFICATION: City Council Resolution,passed and approved April 13,2015,directed the Seward Community Health Center(SCHC)to prepare the grant application referenced in that Resolution. Discussion at both the March 23, 2015 work session on the subject of the grant and at the Council meeting itself made clear that the Council wished to see application in complete form and to then make a decision on submitting the application. Council directed the administration to bring a resolution to Council clearly stating Council's discretion to direct the application be submitted or not submitted prior to the application deadline. The attached resolution affirms that Council will review the completed application and will by resolution determine whether the application will be submitted. The SCHC plans to have their due diligence and the application package completed by mid-July. In order to meet the application deadline,administration proposes the first meeting in August for that resolution to come forward. Passage of this resolution directs the administration to bring forth at the first meeting in August 2015 a resolution,passage of which will authorize the submittal of the grant application,and failure of which will cause the grant application to not be submitted and which will repeal Resolution 2015-029. INTENT: Council direct administration to bring a resolution to the first meeting in August 2015 authorizing the submittal of the SCHC grant application. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan X 2. Strategic Plan X 3. Other(list): Council direction at 04/13/15 meeting X FISCAL NOTE: Financial implications were outlined in the Resolution 2015-029 agenda statement, and will be included in the final determining resolution. There is no fiscal impact associated with this resolution. Approved by Finance Department: Sf - t Z) ATTORNEY REVIEW: Yes X No Not Applicable RECOMMENDATION: Council direct administration to draft a resolution that will determine if the SCHC will submit the grant application. 76 • Sponsored by: hunt CiTY OF SEWARD,ALASKA RESOLUTION 2015-029 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE SEWARD COMMUNITY HEALTH CENTER TO APPLY FOR A 2015 US DEPARTMENT OF HEALTH AND HUMAN SERVICES HEALTH RESOURCES AND SERVICES ADMINISTRATION HEALTH INFRASTRUCTURE IMPROVEMENT PROGRAM GRANT REQUIRING CITY COMMITMENT OF ANY FUNDS NECESSARY TO COMPLETE THE PROJECT WHEREAS,improving health care services and access to health care services is in the hest interests of the public; and WHEREAS,the City of Seward has for many years pursued improvements in health care. both through partnership with Providence Seward Medical and Care Center (PSMCC). and more recently as grantee and co-applicant for funding to establish a Federally Qualified Health Center (FQHC),the Seward Community Health Center(SCI-iC); and WHEREAS, colocation of these organizations on a common campus and in common facilities results in efficiencies and mutually supporting synergies for both, but that multiple space challenges exist for both organizations,as discussed in January 19.2015 and March 23.2015 work sessions with the City Council addressing Space Planning for SCIiC and PSMCC: and WHEREAS,SCHC and PSMCC staff have worked collaboratively with Architects Alaska on conceptual modification,expansion and renovation designs using the existing City owned site and facility to effectively address operational and space needs for both health care organizations: and WHEREAS,the City acts as a legally separate co-applicant in order to obtain federal grant funds to support a FQHC in accordance with Section 330 of the Public Health Safety Act(42 t IS(' §254b), requiring that the City serve as the public entity for receiving and disbursing federal 330 grant funds utilized by the FQHC; and WHEREAS, the US Department of Health and human Services' Health infrastructure Improvement Program(HIIP)offers up to one million dollars($1.000.000)through a competitiN c grant program to existing Health Center Program grantees to be used to improve or increase services through alteration/renovation, expansion or construction of a facility; and WHEREAS,a condition of the grant is that the City,at a minimum,commit to provide any additional funds necessary to complete any and all SCHC portions of the project identified in the grant application; and WHEREAS. the base level project. identified as Phase 1. including the expansion and 77 CITY OF SEWARD,ALASKA RESOLUTION 2015-029 1 renovation of the current facility necessary to complete all aspects of the project related to SCHC. has an estimated total project cost of$4,019,014 and, with the full federal award could result in $3.019.014 of additional estimated City funding necessary to complete Phase I; and WHEREAS, the SCHC Board of Directors met March 26, 2015, and recommended requesting City Council authorization to proceed with the HIIP grant application; and WHEREAS,the City desires that an application for HIIP funding be submitted in support of the SCHC portion of Phase I of the hospital facility improvement project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City of Seward supports requesting the HIIP funding and authorizes the SCHC to prepare and submit the grant application on its behalf for up to one million dollars ($1,000,000)towards Phase I of the proposed hospital facility improvement project. Section 2. Contingent upon the grant being awarded, the City will provide the additional -- funding necessary to complete the project. identified as Phase I. with an estimated total cost of $4.019,014. s Section 3. The City of Seward approves the expansion and renovation of the current facility as included in Phase I and commits to moving forward with Phase I of the proposed project. contingent upon the grant being awarded. Section 4. The City of Seward will take any and all steps necessary to the best of its ability to complete Phase I of the proposed project no later than August 31,2018,contingent upon the grant being awarded. Section 5. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward. Alaska,this 131"day of April. 2015. • 78 • CITY OF SEWARD,ALASKA RESOLUTION 2015-029 THE CITY OF SEWARD, ALASKA Mgrianna Keil, Vice ay or AYES: Terry, Squires, Darling, Keil NOES: Casagranda, Butts ABSENT: Bardarson ABSTAIN: None ATTEST: Cit a :fif.,. ... Jo anna Kinney, CMC , Clerk (City Seal) ssss•.ssssib q� 44 OF c, :14 •N . • • L. , : Oj • • •� _C~ 79 Council Agenda Statement Meeting Date: April 13,2015 t Of SE. L•C■1"11 From: Jim Hunt,City Manager Agenda Item: To authorize the Seward Community Health 4tA0-P Center to apply for a Health Infrastructure and Improvement grant,and committing City funds to compete the clinic expansion project if the grant is awarded BACKGROUND &JUSTIFICATION: The City has participated in providing health care services to the community for many years, and continues to partner with Providence Seward Medical and Care Center (PSMCC) and the Seward Community Health Clinic(SCHC)to improve access to health care services. Both PSMCC and SCHC currently occupy the City-owned facility. The shared location results in synergies of service and efficiencies for both organizations,and as discussed in two work session with the City Council,also presents some space challenges and therefore opportunities to consider strategic expansion or renovation options that would best meet the need for additional space. Staff from both organizations have worked with Architects Alaska to bring back to Council a set of options for expansion or renovation of the facility,and has presented to the Council a concept design consisting of Phase I(expansion and renovation)and Phase II(full build out)of the existing facility to serve existing and future needs.At the same time,SCHC has identified a US Department of Health and Human Services grant opportunity for up to $1 million, available to existing Health Care Center grantees for use in work on a facility that results in increased or improved health care services to the community. The grant application requires that the public entity eligible to receive and disburse the funds under the Public Safety Health Act, in this case the City,commit to providing any additional funds necessary to complete and all SCHC portions of the project identified in the grant application. Project cost for the SCHC-related portions of the Phase I development is estimated at $4,019,014, therefore. with full federal award, the City could be responsible for the $3,019,014 necessary to complete the project. The SCHC Board of Directors met March 26, 2015, and recommended that City Council authorize pursuing the grant application. INTENT: Council approve and authorize the SCHC to prepare and submit the grant application on the City's behalf for up to one million dollars($1.000,000)towards Phase I of the proposed hospital facility improvement project. C6 LP 80 CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (3.7.3.2):Relocate the long term care facility and X 1. the hospital to a site which will support expansion and modernization. Strategic Plan (p. 19)Other Major Elements of Our Vision: Maintain X 2' and enhance medical and social services 3. Other(list): FISCAL NOTE:The City of Seward is the owner of the healthcare facilities utilized by the clinic and hospital. and expansion of those facilities necessitates City involvement and funding. The City maintains a 1%sales tax designated for healthcare capital and services, generating approximately $1 million per year. Funding for expansion of the hospital/clinic building can be financed through a combination of grant funds, cost-based reimbursement funding (for the hospital portion of the expansion),patient revenues associated with added services and/or utilization,revenue bonds.and the sales tax proceeds dedicated to healthcare. A precise plan for funding will be developed prior to final submission of a grant application,based on the proposed configuration of the expansion project(space allocation between the hospital and clinic facilities). Approved by Finance Department: -914,45.sL ber --� ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council authorize the SCHC to submit the grant application. gtSot.-hph 1-o\� O2- 81 City of Seward,Alaska City Council Minutes March 23,2015 Volume 39,Page 500 City Clerk Johanna Kinney passed out ballots to council then collected them and read the first vote count as follows:3 votes for John French and 4 votes for Orson Smith. Council appointed Orson Smith as the city's representative. Send a letter of support from the Mayor to the Governor's Office and the Alaska Legislature in support of the confirmation of Robert Ruffner to the Alaska Board of Fisheries. Council agreed a letter should be drafted. Long stated he would prepare the letter. See if a member of council would represent Seward on March 28, 2015 in Soldotna at the Climate Change Conference sponsored by the League of Women Voters and the Kenai River Campus Student Union. Council Member Casagranda stated she would attend. Give guidance to administration on moving forward on SCHC/Providence expansion project and grant opportunities.Council indicated for SCHC and Providence staff to move forward with administration to bring forward a resolution for support of the expansion grant opportunity as described in the March 23, 2015 work session provided by SCHC and Providence.They asked when administration brought forward a resolution for consideration it included possibilities for the city to provide additional funding for the project. INFORMATIONAL ITEMS AND REPORTS Support letter for a Volunteer Hospice Program in Seward. COUNCIL COMMENTS Terry said council had an upcoming joint work session with PACAB on April 1, 2015 at noon regarding bringing more fishing vessels to Seward. Butts thanked everyone for their support and comments tonight. He clarified that Andy Mezirow was nominated by the governor on the North Pacific Fisheries Management Council.Butts thanked everyone who supported the TYC poker tournament this last weekend. Squires congratulated the two firefighters getting pinned tonight. He congratulated Mr. Smith on his PWSRCAC appointment and hoped he would confer with Mr.French on items.To the people of Lowell Point,Squires promised they would get this project done and to please give the city a chance.Generally speaking,he felt the city should concentrate on creating plans,setting goals,and achieving those goals. Darling congratulated Smith and French for applying.She thanked council for supporting the street lights and getting the project going.Hopefully soon people could see the lights lit at the top of the street. Bardarson thanked everyone for coming out for the senior housing and thanked French and Smith for applying and congratulated Smith for the appointment. 82 City of Seward,Alaska City Council Minutes April 13,2015 Volume 39,Page 515 deleted to allow for an increase in the rate because the additional hours were currently charged at a lesser rate. In response to Squires,Funk said the harbor intended to bill in quarterly hour rates.Darling was concerned with the lack of insurance of the fuel dock operators.Funk understood her point and they intended to take a closer look for future agreements. In response to Terry,Funk stated the city did not charge extra while waiting to use the wash down pad. Funk said the blocks themselves were provided by the vessel owner or they could rent them. They were not provided by the city. Regis added the city was providing just the service of lifting the vessel up and placing it on the blocks.Terry said it was confusing the way it was written. Butts asked if the city required every vessel to be washed down.Funk said generally they did. Butts was concerned that all the fees were adding up to be too much: the city lifted a vessel, transported it to the wash down pad,increasing the time the vessel was in the lift,and now the city wanted to charge more money for the initial lift and every fifteen minutes after that. Funk said this was correct and noted there was already an extra charge during the wash down process. Butts was concerned with too many increases for various charges.Regis clarified the city did not double up on time charges. Hunt added the uplands area at SMIC was full and this equipment was in use. Squires said some of the comments he'd heard from the last work session that fishermen were feeling the strain on costs. He wanted to know why he should support these increases. Hunt said because the city needed to pay for the new 330-ton travel lift purchase and added Seward was still competitive across the market with other harbors. Squires said perception was important. Funk added that the capacity of the new equipment was greater and they increased the rates by about that percentage of capacity, approximately 20%. Butts said some of the increase in cost was the wash pad requirements they were putting on the consumer. He had no problem with this if they were going to be competitive. Motion Failed Yes: Darling, Terry No: Casagranda, Butts, Squires, Keil UNFINISHED BUSINESS—None NEW BUSINESS Resolution 2015-029, Authorizing The Seward Community Health Center To Apply For A 2015 US Department Of Health And Human Services Health Resources And Services Administration Health Infrastructure Improvement Program Grant Requiring City Conunitment Of Any Funds Necessary To Complete The Project. Motion (Terry/Casagranda) Approve Resolution 2015-029 83 City of Seward,Alaska City Council Minutes April 13,2015 Volume 39,Page 516 Hunt said they were looking for approval and direction to allow the Seward Community Health Center(SCHC),through the city,to apply for up to a$1 million grant for expansion of the facility. The Providence Administrator and SCHC Executive Director were here tonight if the council had questions for them. Terry had some reservations on this.The SCHC board intended to do an intense cost analysis. She thought there was reference of this application coming back to council one more time in case council wanted to opt out of submitting this application. Hunt said the intent was not to build that opt out statement into this resolution,but allow for any rescinding. Terry wanted assurance this was going to come back to council for potential rescinding. Hunt agreed it was worth putting on the agenda for council to take action on;he could have that ready at the next meeting.Hunt added accepting the funds would still need to come back to council,so that was another opportunity to opt out if they wanted to. Terry was concerned that aside from this being on the record, and the promise that a resolution would come back to confirm,the city had the ability to bow out of this grant by the end of the summer. Casagranda was not inclined to support this as it did not seem fiscally responsible. Keil said the total cost was a$4,019,014 for Phase I of the project,and that was what she understood council was agreeing to tonight by allowing this grant application to be completed. Darling had similar concerns with Terry.She received a letter that raised apprehension with her that perhaps this wasn't a good time to expand the hospital. Council recessed at 9:23 p.m. Council resumed at 9:27 p.m. Squires asked about the remaining funds the city would need to come up with for the project. Finance Director Kristin Erchinger clarified one of the things the SCHC board was asking for was approval to proceed with the grant application process and to also buy the city and the SCHC board time to do their due diligence to determine if this was a feasible project.The SCHC was asking for permission to prepare the application for submission.She'd rather not ask how the city was intending to pay the difference,because that wasn't even the question at this point. In response to Casagranda, Erchinger stated the Phase I of this project was just for the expansion of the SCHC and not Providence.Addressing Providence's needs was another option but the main question tonight was should the SCHC be submitting a grant for a million dollars. In response to Darling,Erchinger said the$4 million figure was the amount they planned to use with the intent to apply,and later they would formally determine with the public and the council what amount and what project they would be pursuing. Erchinger reiterated this resolution was asking for approval to prepare a grant application only.The council would also be blessing the grant application on the council level if and when the time came. The city and SCHC had to submit their intent to apply by April 21,2015. 84 City of Seward,Alaska City Council Minutes April 13,2015 Volume 39,Page 517 Butts appreciated all the work that had gone into this so far but felt they were rushing into it, and the city should be looking at the future of the hospital building more long term. Casagranda wanted the SCHC to gain momentum first and they needed to be careful with their startup costs.She would be false to say she may be supporting an expansion project later down the road. Darling appreciated the Finance Director's explanation tonight.Erchinger said the intent was to pass another resolution that if no further action was taken by the council, the grant application would not be submitted.Keil said a primary function of the council was to provide for the health and safety of the community;the city should take advantage of this opportunity.She thought it would be fiscally irresponsible to not let them go forward and apply for the grant. Terry agreed that the SCHC could expand,but not necessarily at the city's expense.But she was more assured that the SCHC would be doing due diligence and administration would be coming back to council for additional confirmation.This would at least move them forward to make a good decision but she was nervous this would not come back to them for further approval.As long as it came back to the council, she was in favor of voting for this. Squires said he was originally not going to support this.But looking at the information from the SCHC,he was willing to go ahead and look at this grant. Since it would come back if the city accepted the grant or not,at that time he expected a lot of information and was willing to give them the chance to work on it. Motion Passed Unanimous Resolution 2015-030,Adopting The Planning And Zoning Commission Priorities From April 2015 To April 2016. Motion(Terry/Casagranda) Approve Resolution 2015-030 Keil requested this come off the consent agenda because she wanted to include the examination of 30 foot lots in Seward,as discussed in council's joint work session with the Planning and Zoning Commission. She would like to add this to the resolution. Motion to Amend(Terry/Casagranda) Amend Resolution 2015-030,adding a new number five under "Short and Medium Term Priorities"in section one: "Examine development of 30 by 100 foot lots within Seward City limits." Squires thought this provision was already allowed. Hunt said it was allowed within the original town site and he thought the intent would be to broaden that provision. Squires thought that was a can of worms,but thought it was fine to have the commission review this again and bring it back for consideration. Motion to Amend Passed Unanimous 85 *Tool ivie, 1-13-15 tAti k%' x.515-(52 i \ , 4F • SEWARD COMMUNITY HEALTH CENTER 7r� PO Box 2895/417 First Avenue-Seward,AK 99664-2895 2C0MMUNITY PHONE (907)224-2273 HEALTH FAX (907)224-8501 CENTER www.sewardhealthcenter.org SEWARD COMMUNITY HEALTH CENTER Key Points of Information About the SCHC Portion of the Proposed Project and HRSA Grant Application Recommendations Recommendations of the SCHC Board of Directors: 1. If there is a reasonable possibility that the City Council might determine in the next few months to move forward with the proposed expansion and renovation project at the current site, then it would be beneficial to approve the draft resolution and apply for the $1 million federal grant by the April 21st initial submission due date in order not to lose this opportunity. This is not a recommendation for the City Council to make any final decision at this time regarding this or any other possible facility improvement or replacement project. 2. Like the City Council members, the Board of Directors also has a number of questions and information needs it would like addressed before it feels comfortable making any final recommendations regarding the proposed project or any alternative facility project. Therefore, it recommends that a thoughtful due diligence process be undertaken by all the parties concerned over the next four months. By early August, but no later than September 1st of this year, it requests that the City Council make a decision regarding whether it wishes to pursue the proposed project and grant application. If the Council is not prepared to move forward with the proposed project at that time, then the Council should direct that the application be withdrawn. Key Points of Information: 1. The total estimated cost of the SCHC portion of the proposed building project is $2,652,684. The estimated total cost of the proposed project is $8,400,812 not counting the costs of moveable and installed equipment and furnishings (FFE). The estimated cost of FFE for the SCHC portion is $24,536. Thus, the majority of the estimated total cost of the proposed project supports the Providence Seward Medical Center portions of the project. The SCHC portions of the proposed project are 31.6% of the total project cost. 2. The maximum amount of the federal capital grant available under the current program is $1 million. If we apply and if awarded, this would represent 37.7%of the total SCHC portion of costs. 3. SCHC currently uses a total of 3,168 sq. ft. of unshared space in the Providence Seward Medical Center (PSMC) facility and on the campus. This includes 2,388 sq. ft. in the main facility and 780 sq. ft. in the modular office building. 4. None of this space is contiguous as it is interspersed among and between spaces used by PSMC. The four"islands"of space used by SCHC include: the administrative modular building, the registration area, the clinic space and a medical records room. Where your health matters 86 • • SEWARD COMMUNITY HEALTH CENTER PO Box 2895/417 First Avenue-- Seward,AK 99664-2895 - 9COMMUNITY PHONE (907)224-2273 HEALTH FAX (907)224-8501 J,C E NTE P. www.sewardhealthcenter.org 5. This 3,168 sq. ft. of space is now or will be used by 3 full-time medical providers (2 physicians and a physician's assistant), an RN clinical supervisor, 4-5 medial/nursing assistants, an RN health Educator/case manager, 2 registration specialists, a medical records specialist, a billing specialist, 2 outreach and enrollment specialists, a quality assurance coordinator and 3 administrative staff members (a total of 19 staff members). Remember, a community health center is not just a medical clinic like a small private practice; it is so much more and offers more in the way of health enhancing services. 6. This space also includes a small point-of-care laboratory,two small clinical supply rooms and 6 exam rooms: 4 general exam rooms and a procedure room and an ortho room, both of which can be used for regular patient visits if they are needed and available. The procedure room is the last room used as it is normally kept available in case it is needed immediately for an urgent care, walk-in patient requiring wound care or another minor surgical type of procedure. 7. The 3 medical providers and 4 clinical support staff do not have private offices. These seven clinicians are jammed into two small open office areas close to the exam rooms. 8. In addition to the space issues noted above, other important space challenges for the health center include: a. There is no triage room b. There is no workup room as patients have to have heights and weights taken in the hallway c. There is no space available to integrate behavioral health services into primary care as desired by SCHC and SeaView Community Services d. Unless specialists are willing to come to Seward on Saturdays, there is very little opportunity to conduct specialty outreach clinics at SCHC during the work week e. There is no space to add a fourth medical provider and support staff in the future if needed f. We have no consultation room for physicians, nurses, outreach and enrollment staff or the health educator/case manager to meet privately with patients and family members g. Clinical storage space is very limited for supplies, instruments and minor clinical equipment 9. According to Mr. Fong, PSMC Administrator, when they operated the Family Medicine Clinic, they would normally have two providers on duty at one time and would see between 8 and 10 patients per provider a day on average. This productivity rate is well below CHC and national primary care standards. The space is optimally designed for two provider teams to be functioning simultaneously with each team using one office area and three exam rooms in each corridor. But this is optimal. 10. SCHC has already surpassed the 8-10 patients per provider per day mark averaging close to 12 in our startup ten months. During the ten months of operation in 2014 we saw 1,072 unduplicated patients and 2,096 patient visits using mostly one locum tenens mid-level provider during that period. About 15% of these patients came from outside the Seward/Moose Pass service area. Where your health matters 87 SEWARD COMMUNITY HEALTH CENTER e PO Box 2895/417 First Avenue-Seward,AK 99664-2895 °COMMUNITY PHONE (907) 224-2273 HEALTH FAX (907) 224-8501 tg C E N TE R www.sewardhealthcenter.org 11. SCHC has successfully recruited three permanent, full-time providers including two family medicine physicians and a physician assistant. Due to the constraints of the current clinical office space, supply space and exam room space, we are using a four day/tem hour schedule for our provider teams. When factoring in time off for vacation, sick, holidays and CME time, the number of weeks worked per full-time provider is 44 per year. 12.The New Access Point grant application projected that SCHC would eventually see 3,796 patients by the end of year 2 with 8,920 patient visits (2.3 visits per patient per year) using 3.5 medical providers. Our 2015 fiscal year budget projects seeing 3,131 unduplicated patients and 7,827 visits (2.5 visits per patient per year) using 3 providers. The Alaska CHC average was 3.08 medical visits per patient per year. 13. A question has often arisen regarding the capacity of the current space to house providers, clinical support staff and to see patients. A very simplistic, and quite misleading and inaccurate, methodology is to multiply the number of exam room appointment slots per hour by the number of hours available in a day. For example, if you assume that appointments average 30 minutes and you have 8 hours a day that would equal 16 room slots a day per exam room. If you have six exam rooms that equates to 96 slots per day, 480 per week and 24,960 per year. Wow! That's a lot of patient visits for six exam rooms. What's the problem? The problem is this requires having six providers and 9 or 10 clinical support staff all seeing or attending to patients all at the same time with no down time in between patients in order to clean the room, re-stock it and prepare it for the next patient. I think anyone can see that this is not at all how primary clinics work nor is it very realistic. Patients are not widgets and clinics are not production lines. And exam rooms are used in an alternating sequence by the provider, not usually in a simultaneous manner. As the provider is in one room seeing a patient, the other room is vacated, wiped down, and re-stocked and prepped by the assistant. As the provider is close to finishing with one patient, the assistant may begin checking in the next patient on the schedule into the adjoining vacant room allowing for some time in between patients for the provider to complete some charting, make a referral, place a call, etc. The capacity of a clinic to see patients is based upon a number of interactive factors, but most importantly the number of providers you can have operating effectively in the clinic space at one time and the productivity rate per provider, not exam rooms. The number of general exam rooms needed is tied to the number of providers you have operating at one time with each provider usually needing at least two exam rooms at their disposal. This assumes a moderate productivity rate of 2 visits per hour per provider. Providers can actually increase this productivity rate to 3 or more visits per hour, but this usually requires having at least three exam rooms per provider and 1.5 to 2.0 clinical support staff per provider(including their primary assistant and specialty assistants who focus on referrals, refills and other specialty support tasks). In addition to general exam rooms one or more specialty rooms, such as a minor procedure room or an EKG room, are often made available and shared by a group of providers. Where your health matters 88 • SEWARD COMMUNITY HEALTH CENTER PO Box 2895/417 First Avenue-Seward,AK 99664-2895 2COMMUNITY PHONE (907) 224-2273 HEALTH FAX (907) 224-8501 CENTER www.sewardhealthcenter.org With only two small open office areas, four general exam rooms, a procedure room/exam room and an ortho room/exam room at the current clinic space, the realistic capacity is limited to three full time providers with perhaps some part-time providers thrown into the mix, if needed, to cover when our regular providers are on vacation or CME leave. And this is what we have budgeted and hired. But there are a few other factors to consider when looking at capacity. The Board of Directors, all of our providers, our clinical support staff and our patients want SCHC to be able to accommodate same day appointments on a consistent basis. This is not only convenient, it is higher quality care. Now that we have hired our permanent full time staff and can schedule two and three providers in the clinic at the same time, we have been able to implement this"get them in asap"attitude and policy. Additionally, we want to avoid patients having to wait two or three weeks to get an appointment. Again, with a full complement of providers and support staff this is quite possible. Both of these, however, require that there always be a certain amount of excess capacity available in terms of provider appointment slots and exam rooms. So, you can't actually run at 100% full capacity all the time with pre- scheduled appointments if you want to have some slots open each day to accommodate walk- ins, call-ins and urgent care needs. With all of the above as background information, let's calculate the actual capacity of the current space beginning with three full time providers. As noted above, a moderate productivity rate is 2 visits per hour per provider. I'd like to see this eventually increase to 2.5 visits per hour. Each provider works four ten hour days of which 1 hour is for lunch and 1 hour is for administrative tasks resulting in an 8 hour appointment schedule per day. 8 hours times 2 visits per hour comes to 16 visits per provider per day on average. 16 visits per day times four days per week comes to 64 visits per week per provider. When we factor in time off for vacation, holidays, sick and CME time, we budget our providers to work 44 weeks per year. 64 visits per week times 44 weeks per year comes to 2,816 visits per provider per year. For 3 providers,that comes to 8,448 visits per year for the practice. Hiring locum tenens providers is very expensive, and patients would prefer to see their own regular providers most of the time. I'm not convinced using locum providers once you have a permanent staff in place is cost effective, but for capacity estimating sake, let's say that we do bring in some part-time providers to fill in for the 6 weeks of vacation and CME time for each provider and that they too are able to see 16 patients per day(which is not very likely for good reasons). 16 visits a day for 4 days per week for 6 weeks per year for 3 providers comes to an additional 1,152 visits per year. This brings our total capacity of the current space to 9,600 visits per year with each provider using two exam rooms each and all these providers and their assistants using the only two small open space office rooms that are currently available. We may also squeeze out a bit more capacity if we could get our productivity to 2.5 visits per hour or a 25% increase(which is the most cost effective way to increase capacity). That could possibly get us to 12,000 visits per year if everything went perfectly and we really pushed it to the limit. That's the reality; not the 24,960 figure simplistically used above. Where your health matters 89 • • SEWARD COMMUNITY HEALTH CENTER• • , PO Box 2895/417 First Avenue-Seward,AK 99664-2895 °COMMUNITY PHONE (907) 224-2273 H EALTH FAX (907)224-8501 CENTER www.sewardhealthcenter.org So, we can reasonably state that the capacity of the current clinical space at the health center is between 8,500 and 9,600 visits per year. Yes, compared to our startup ten months of 2,096 visits (or 2,515 visits annualized) we still have room to grow before we get to the capacity of the current space. As we have stated, the federal grant situation is coming a bit prematurely if we were only looking at the clinical space needs of the health center. But if you look at the NAP grant projections and our current fiscal year budget projections, it may not be too much further into the future when we begin hitting our heads on the ceiling, so to speak, especially when we get into our peak periods. Remember, all the numbers mentioned above are averages, and averages mean you have very busy times and slower times. There is one more set of calculations we need to consider and that is the number of patients this capacity of visits represents and how that compares to the size of the community and our grant and budget projections. Let's use the more realistic and conservative 8,448 number of visits per year. First we need to reduce this number by the 15% factor for out-of-area visits. 8,448 times .85 brings us to 7,181 visits per year for residents of the service area. If we then use the average of 2.5 visits per patient per year(7,181/2.5) that equates to 2,872 patients. If we use the Alaska CHC average of 3 visits per year per patient that equates to 2,394 patients. This is about 50% of the resident population of the service area. The national ratio of physicians to population is 1:1500. And busy primary care physicians can have patient panels ranging from 1,200 to 2,000. So, with three full time primary care providers, we should be able to get to combined patient panels of about 3,600 patients (about 65% of the resident population) which is pretty close to what was projected in the NAP application and fiscal year budget. But can we take care of 3,600 patients from the service area in our current space? Probably not. If 3,600 patients have an average of 2.5 visits per year, this equates to 9,000 visits per year (and 10,800 visits per year at the Alaska CHC average of 3.0). Now if we factor that up by an additional 15% for visits from out-of-area patients, that comes to between 10,588 (at the 2.5 rate) and 12,706 (at the 3.0 rate)visits per year. The only way we could get to this level of volume in the current space is if our productivity rate reached the 2.5 visits per hour per provider target and we brought in locum providers to fill in for our 3 full time providers for the 18 weeks they could be off for vacations and CME time. And where's the excess capacity needed to have same day slots available each day and the time needed to take care of urgent care procedure needs? And won't patients have to wait two or three weeks to get an appointment? And would this pace and crammed space support retaining the good providers and support staff we have been able to recruit and hire for the community or would they burn out and decide to practice elsewhere? And do we have the storage space needed to put all those supplies that will be needed? And would we have to add a third registration specialist to the staff to handle the increase volume when that area is designed only for two at a time? If only it were as simple as crunching numbers. But patients are not widgets and providers are not assembly line workers. Where your health matters 90 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO AMEND THE CONTRACT WITH CRW ENGINEERING GROUP,LLC AND INCREASING THE CONTRACT IN THE AMOUNT NOT TO EXCEED $178,830 TO PROVIDE CONSTRUCTION SUPPORT SERVICES FOR THE NORTH SEWARD WATER STORAGE TANK AND PUMPING FACILITY PROJECT WHEREAS,the North Seward Water Storage Tank and Pumping Facility project is funded by an Alaska Department of Environmental Conservation (ADEC) Municipal Matching Grant, a State of Alaska Designated Legislative Grant and funds directly from the City of Seward,and WHEREAS,ADEC requires specific engineering services on several aspects of the project that the staff of the City of Seward cannot provide, such as Engineer stamped as-built drawings, possible assistance with Contractor questions and/or changes, the creation of the Operation & Maintenance Manual,etc.;and WHEREAS, CRW Engineering Group(CRW)has been involved with the North Seward Water Storage Tank and Pumping Facility project since it's conception, has developed the bid documents for the project,and therefore has considerable knowledgeable of the project;and WHEREAS, CRW provided the City of Seward with a fee proposal to complete the tasks related to construction support that are required to be approved by an licensed engineer,and WHEREAS, the City's Project Manager and Public Works Director reviewed the fee proposal and identified several items that could be handled in-house and requested a revised fee proposal;and WHEREAS, CRW provided a revised fee proposal of the services that the City needs assistance with;and WHEREAS,it is in the best interest of the City to secure the required engineering services from CRW as they have intimate knowledge of the project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1.The City Manager is hereby authorized to amend the professional service contract with CRW Engineering Group,LLC to assist the City of Seward with construction support services for the North Seward Water Storage Tank and Pumping Facility. 91 CITY OF SEWARD, ALASKA RESOLUTION 2015-048 Section 2. The Seward City Council hereby fords it in the public's best interest per Seward City Code 6.10.120(A)(8)to sole source the professional services agreement to CRW Engineering Group. Section 3. Funding for construction support in the amount of$178,830 is available in 17310- 0000-7101. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska, this 26th day of May,2015. THE CITY OF SEWARD,ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney,CMC City Clerk (City Seal) 92 Agenda Statement e of sew Meeting Date: May 26,2015 b'�'� �'a To: City Council 'g�'' Through: City Manager,Jim H �' From: Public Works Director, W.C. Casey Agenda Item: Amend the Professional services agreement with CRW Engineering Group, LLC to assist the City of Seward by providing construction support services for the North Seward Water Storage Tank&Pumping Facility project for an amount not to exceed$178,830. BACKGROUND &JUSTIFICATION: On December 8, 2014, Seward City Council passed Resolution 2014-104 authorizing the City Manager to enter into a contract with CRW Engineering Group, LLC. (CRW) for professional services to complete the North Seward Water Storage Tank and Pumping Facility, Phase II, and provide bid support services for the project. They provided an excellent bid package and we had three very close bids. On April 27,2015, Seward City Council passed Resolution 2015-038 to amend the contract with CRW to add building modifications and an exploratory well to the contract, in the amount of $99,984. These items have been completed, the construction contract awarded to Southcentral Construction Inc.,and the project is ready to commence. This project is funded by a Municipal Matching Grant from the Alaska Department of Environmental Conservation(ADEC), a State of Alaska Designated Legislative Grant and funds from the City of Seward. Public Works is in need of assistance with several tasks that ADEC requires to be provided by an engineer. Because CRW was intricately involved in this project from the conception stage and has provided exceptional service,Public Works feels that requesting their engineering services would be in the best interest of the City. In April2015,staff asked CRW to provide a fee proposal for construction support. CRW submitted a detailed proposal for$228,900. Public Works Director, W.C. Casey reviewed the fee breakdown with the City's Project Manager,Rick Wise,and found that many of the items could be completed in house. Staff has determined that a$50,000 savings in Contracted Construction Support Services can be realized by utilizing the assistance of our Project Manager, Rick Wise. Rick will review the contractor submittals,respond to design clarification and verification requests,review and generate field directives and review contractors claims and change orders. When assistance is needed,he will work with CRW directly. 93 CRW will also provide: • Review Contractor Submittals when requested • Respond to Contractor Design Clarification/Verification Requests(DCVR's)when needed • Review and Generate Field Directives • Attend Project meetings by Teleconference • Review Contractor Claims and Change Orders • Period Construction Site Inspections(12) • Inspections at the Substantial and Final Completion • Assistance with Startup and Commissioning the New Facility • Record Drawing of Plans • Assist with obtaining the Approval to Operate • An Operations and Maintenance Manual Utilizing these services from CRW will allow us to operate/construct under the oversight of a licensed water engineer and satisfy the requirement of ADEC. INTENT: Authorize increase and amend the contract with CRW Engineering Group,LLC.in the amount not to exceed $178,830 to assist the City of Seward by providing construction support services for the North Seward Water Storage Tank and Pumping Facility project. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan(document source here): X 2. Strategic Plan(document source here): X 3. Other(list): O&M Manual X • FISCAL NOTE: Funding for the professional services agreement with CRW Engineering Group,LLC is available in the Water Storage Tank Infrastructure account no. 17310-0000-8101. Approved by Finance Department: .i(4 -1i 4 t--5,0 ATTORNEY REVIEW: Yes No Not Applicable X RECOMMENDATION: The Seward City Council approves Resolution 2015- ,approving Amendment no. 2 to the Professional Services agreement CRW Engineering Group,LLC in the amount not to exceed $178,830 to provide construction support services for the North Seward Water Storage Tank& Pumping Facility project. 94 Rw April 15, 2015 ENGINEERING GROUP LLC City of Seward P.O. Box 167 Seward, Alaska 99664 Attn: WC Casey, Director of Public Works Re: Additional Services — North Seward Water Storage Tank & Pumping Facility — Phase II Construction Support Services Dear WC: CRW Engineering Group, LLC is pleased to provide this proposal for construction support services for the North Seward Water Storage Tank & Pumping Facility — Phase II project. Construction is scheduled to begin in May and run through November, 2015. The project includes construction of the following elements: • 2,344-foot water transmission mains to/from the new tank site (two pipes) on Hemlock Street between Cedar Street and the tank site • 600,000 gallon insulated water storage tank, site grading, roadway access, yard piping, and water well • 32-foot x 46-foot building to house water system controls, pumps, piping, valves, chlorination equipment, and standby generator • 620-foot water transmission main on Olympia Road to fill the Gateway water storage tank from the new tank • 1,610 foot sewer main on Hemlock Street from the new building to the existing sewer at Oak Street • Demolition of the Swetmann Booster Station Similar to past construction support services that CRW has provided for the City of Seward, we propose to provide office support and periodic construction site visits as necessary to fulfill ADEC requirements for the engineer in responsible charge of construction. We will confirm that construction was accomplished in accordance with the contract documents, and sign/seal the record drawings as required for ADEC Approval to Operate. The City of Seward will serve the role of Contracting Officer and provide the day-to-day on-site construction inspections, documentation, and photographs. Additionally, it is anticipated that the City will contract separately and coordinate all required special inspections for the building, water storage tank, and water/sewer utility construction, including: • Building Special Inspection (see Plan Sheet S2 of S9) o Soils o Structural Steel 3940 ARCTIC BLVD.•SUITE 300 •ANCHORAGE,ALASKA 99503 • (907)562-3252 • FAX(907)561-2273 •www.crweng.com 95 o Concrete o Masonry o Wood • Water Storage Tank Steel Welding and Construction Inspection • Building and Tank Foundation Density Testing • Bedding and Trench Backfill Density Testing CRW proposes to provide the following construction support services: 1) Office Support a. Review and track construction contractor's material and product submittals. b. Respond to construction contractor's requests for interpretation/clarification of design documents. c. Review and provide Field Directives as necessary during construction. d. Attend project meetings including Pre-Construction Conference and progress meetings (by teleconference). e. Review construction contractor's pay estimates. f. Review construction contractor's change order requests and assist in preparation of the necessary change order documentation. 2) Periodic Site Inspections a. Provide periodic site inspections as requested by the Contracting Officer. The site inspections shall be conducted by a licensed engineer or a qualified EIT and each inspection shall be documented with a written report. b. Attend the Substantial and Final Completion Inspections. c. Provide assistance with Startup and Commissioning of the North Seward Water Storage Tank & Pumping Facility. 3) Record Drawings Transfer the construction contractor's red-line as-built information to the design drawings in electronic AutoCAD format. The record drawings will be prepared in accordance with AWWU guidelines and will be signed by the design team project manager. The documents will be submitted to the City of Seward in both electronic and hard copy (mylar format). 4) Operation & Maintenance Manual Prepare an operation and maintenance manual for the new North Seward Water Storage Tank & Pumping Facility to satisfy ADEC requirements for the Approval to Operate. At a minimum, the O&M Manual will include the following sections: a. General Information b. Water System Description City of Seward, Alaska Page 2 CRW Engineering Group, LLC Proposal—North Seward Water Storage Tank&Pumping Facility—Phase II Construction Support Services 96 c. Water Supply, Controls, Treatment, and Storage d. Water Distribution System e. Generator and Fuel Storage System f. Safety g. Forms h. Manufacturer's Data CRW proposes to perform the construction support services on a time and expenses basis per our existing design contract in accordance with the attached Fee Proposal. Total estimated cost to complete this work is$228,900. We appreciate the opportunity to submit this proposal and look forward to continuing to assist you with this project. Please let me know if you have any questions. Sincerely, CRW ENGINEERING GROUP, LLC ,agrfr Pete Bellezza, PE Principal, Civil Engineer Phone: (907)646-5640/email: pbellezzacrweng.com Attachments: CRW Fee Proposal City of Seward,Alaska Page 3 CRW Engineering Group, LLC Proposal—North Seward Water Storage Tank&Pumping Facility—Phase II Construction Support Services 97 File:Construction Support Fee_R1 Tab:Summary City of Seward,Alaska Department of Public Works North Seward Water Storage Tank&Pumping Facility-Phase II Construction Support Services Task Fee Proposal Task 1-Office Support $149,990 Task 2-Site Inspections $43,780 Task 3-Record Drawings $18,510 Task 4-Operation&Mainteannce Manual $16,620 Project Total I $228,9001 Task Manhours Task 1-Office Support 992 Task 2-Site Inspections 248 Task 3-Record Drawings 142 Task 4-Operation&Mainteannce Manual 120 • Project TotalI 1,502 CRW Engineering Group,LLC Page 1 of 2 Date:4/15/2015 98 File:Construction Support Fee R1 Tab:Basic Services Staff Category,Rate&Projected Hours CITY OF SEWARD,ALASKA CRW Engineering Group Staff DEPARTMENT OF PUBLIC WORKS To w North Seward Water Storage Tank& a o, a: 45 c `a 9 A a IT Pumping Facility-Phase II c Y m y c •�' m m ' a: a u) y Y Construction Support Services N a° m c 2 c c N `o a U T.) Ti a7 W a W a - aa, t o •E c W rn C- FEE PROPOSAL °: d a� y a .9 _G c .2 g a .G L > >> -ri Q) O E O Y W O N o, N m N a, 'E a a7 U E cc fQ 6 d O < d z d 0, (/) W u) W rn W 2 W u) H < C) C) - (Task&Subtask Description $185 _$165 $160 $170 $120 $165 _$135 _ $95 $75 $80 _Cost x 1.10 Task 1-Office Support Review&Track Contractor Submittals 20 80 50 30 8 8 80 8 $39,240 $780 $40,020 Respond to Contractor DCVR's 20 20 20 20 20 20 $16,100 $320 $16,420 Review and Generate Field Directives 60 60 60 60 40 - $41,900 $840 $42,740 Attend Project Meetings by Teleconference(16 each) 40 40 40 $20,600 $410 $21,010 Review Contractor Pay Estimates(8 each) 24 24 16 _ 4 $10,120 $200 $10,320 Review Contractor Claims&Change Orders 40 40 20 20 $19,100 $380 $19,480 Subtotal Task 1: 204 _ 0 264 190 110 8 __ 8 176 20 12 $147,060 $2,930 _ $149,990 $149,990 Task 2-Site Inspections Periodic Construction Site Inspections(18 each) 16 48 48 16 _ 16 _ $22,240 $3,600 $25,840 Substantial/Final Completion Inspections 2 16 16 $5,650 $400 $6,050 Assistance with Startup&Commissioning 12 20 30 4 4 $11,660 $230 $11,890 Subtotal Task 2: 30 0 84 94 20 4 0 _ 16 0 0 $39,550 $4,230 $43,780 $43,780 Task 3-Record Drawings Plans 12 12 10 30 4 4 40 20 $15,940 $1,000 $16,940 ADEC Approval to Operate 4 4 2 $1,540 $30 $1,570 Subtotal Task 3: 16 0 _ 16 10 30 4 _ 4 _ 40 _ 20 2 $17,480_ $1,030 $18,510 $18,510 Task 4-Operation&Mainteannce Manual General Information 2 4 2 2 $1,510 $30 $1,540 Water System Description 2 4 2 $1,350 $30 $1,380 Water Supply,Controls,Treatment,&Storage 2 10 2 8 8 _ 4 $5,320 $110 $5,430 Water Distribution System 2 8 2 4 $2,310 $50 $2,360 Generator&Fuel Storage System 4 $660 $10 $670 Safety 4 2 $980 $20 $1,000 Forms 4 _ 8 $1,240 $20 $1,260 Manufacturer's Data ,._ 24 4 $2,920 $60 $2,980 Subtotal Task 4: 8 30 16 8 _ 8 8 0 _ 24 12 6 $16,290 $330 $16,620 $16,620 Total Task 1 -41 258 1 30 1 380 1 302 1 168 1 24 I 12 1 256 1 52 I 20 1 $220,3801 $8,5201 $228,9001 $228,9001 CRW Engineering Group,LLC Page 2 of 2 Date:4/15/2015 ,\ • _ _ RWMay 1, 2015 ENGINEERING GROUP LLC City of Seward P.O. Box 167 Seward, Alaska 99664 Attn: WC Casey, Director of Public Works Re: Additional Services — North Seward Water Storage Tank & Pumping Facility — Phase II Construction Support Services (Revision 1) Dear WC: CRW Engineering Group, LLC is pleased to provide this proposal for construction support services for the North Seward Water Storage Tank & Pumping Facility — Phase II project. Construction is scheduled to begin in May and run through November, 2015. The project includes construction of the following elements: • 2,344-foot water transmission mains to/from the new tank site (two pipes) on Hemlock Street between Cedar Street and the tank site • 500,000 gallon insulated water storage tank, site grading, roadway access, yard piping, and water well • 32-foot x 46-foot building to house water system controls, pumps, piping, valves, chlorination equipment, and standby generator • 620-foot water transmission main on Olympia Road to fill the Gateway water storage tank from the new tank • 1,610 foot sewer main on Hemlock Street from the new building to the existing sewer at Oak Street • Demolition of the Swetmann Booster Station Similar to past construction support services that CRW has provided for the City of Seward, we propose to provide office support and periodic construction site visits as necessary to fulfill ADEC requirements for the engineer in responsible charge of construction. We will confirm that construction was accomplished in accordance with the contract documents, and sign/seal the record drawings as required for ADEC Approval to Operate. The City of Seward will serve the role of Contracting Officer and provide the day-to-day on-site construction inspections, documentation, and photographs. Additionally, it is anticipated that the City will contract separately and coordinate all required special inspections for the building, water storage tank, and water/sewer utility construction, including: • Building Special Inspection (see Plan Sheet S2 of S9) o Soils o Structural Steel 3940 ARCTIC BLVD.• SUITE 300 •ANCHORAGE,ALASKA 99503 • (907)562-3252 • FAX(907)561-2273 •www.crweng.com 100 o Concrete o Masonry o Wood • Water Storage Tank Steel Welding and Construction Inspection • Building and Tank Foundation Density Testing • Bedding and Trench Backfill Density Testing CRW proposes to provide the following construction support services: 1) Office Support a. Review construction contractor's material and product submittals. City of Seward will track and coordinate submittal reviews. b. Respond to construction contractor's requests for interpretation/clarification of design documents. c. Review and provide Field Directives as necessary during construction. d. Attend project meetings including Pre-Construction Conference and progress meetings (by teleconference). e. Review construction contractor's change order requests and assist in preparation of the necessary change order documentation. 2) Periodic Site Inspections a. Provide periodic site inspections as requested by the Contracting Officer. The site inspections shall be conducted by a licensed engineer or a qualified EIT and each inspection shall be documented with a written report. b. Attend the Substantial and Final Completion Inspections. c. Provide assistance with Startup and Commissioning of the North Seward Water Storage Tank & Pumping Facility. 3) Record Drawings Transfer the construction contractor's red-line as-built information to the design drawings in electronic AutoCAD format. The record drawings will be prepared in accordance with AWWU guidelines and will be signed by the design team project manager. The documents will be submitted to the City of Seward in both electronic and hard copy (mylar format). 4) Operation & Maintenance Manual Prepare an operation and maintenance manual for the new North Seward Water Storage Tank & Pumping Facility to satisfy ADEC requirements for the Approval to Operate. At a minimum, the O&M Manual will include the following sections: a. General Information b. Water System Description c. Water Supply, Controls, Treatment, and Storage City of Seward, Alaska Page 2 CRW Engineering Group, LLC Proposal—North Seward Water Storage Tank& Pumping Facility—Phase II Construction Support Services 101 d. Water Distribution System e. Generator and Fuel Storage System f. Safety g. Forms h. Manufacturer's Data CRW proposes to perform the construction support services on a time and expenses basis per our existing design contract in accordance with the attached Fee Proposal. Total estimated cost to complete this work is $178,830. Assumptions made in preparing this proposal are as follows: 1) City of Seward personnel will serve as the Contracting Officer and provide the day-to-day on-site construction inspections, documentation, and photographs. 2) City of Seward will contract separately and coordinate all required special inspections for the building, water storage tank, and water/sewer utility construction. 3) City of Seward will track and coordinate all submittal reviews. 4) City of Seward will review and approve contractor pay estimates. We appreciate the opportunity to submit this proposal and look forward to continuing to assist you with this project. Please let me know if you have any questions. Sincerely, CRW ENGINEERING GROUP, LLC Pete Bellezza, PE Principal, Civil Engineer Phone: (907) 646-5640 / email: pbellezza(a crwenq.com Attachments: CRW Fee Proposal City of Seward, Alaska Page 3 CRW Engineering Group, LLC Proposal—North Seward Water Storage Tank& Pumping Facility—Phase II Construction Support Services 102 File:Construction Support Fee_R2 Tab:Summary City of Seward,Alaska Department of Public Works North Seward Water Storage Tank&Pumping Facility-Phase II Construction Support Services Task Fee Proposal Task 1-Office Support $110,750 Task 2-Site Inspections $34,580 Task 3-Record Drawings $18,510 Task 4-Operation&Mainteannce Manual _ $14,990 Project Total! $178,8301 Task I Manhours Task 1 -Office Support 722 Task 2-Site Inspections 200 Task 3-Record Drawings 142 Task 4-Operation&Mainteannce Manual 102 Project Total 1,166 CRW Engineering Group,LLC Page 1 of 2 Date:5/1/2015 103 File:Construction Support Fee_R2 Tab:Basic Services Staff Category,Rate&Projected Hours CITY OF SEWARD,ALASKA CRW Engineering Group Staff DEPARTMENT OF PUBLIC WORKS ui O North Seward Water Storage Tank& a a t _ .6 Pumping Facility-Phase II m m c, a> c 7 c 7 ra C Y rp cu C -C 6 A U N to U7 y Y Construction Support Services t0 a) c c 5, v v 2 of - c o N 7 C N C C N O N O Y si U d 2 V W W 45 cu a� `y rn Zii c' '02 Q et xn = to m N N -5 J .' N uJ 61 N N J W H FEE PROPOSAL _ d y L `o .c `o c ? c W •c c >> >> co C D O y '0 C 0I 4112 C m '2 m A U E w w TO To 0 O < u 2a COW cnnw cow CI, L11 in O. < Ci 0 I- F 'Task&Subtask Description $185 $165 $160 $170 $120 $165 $135 $95 $75 $80 Cost x 1.10 Task 1-Office Support Review Contractor Submittals 20 40 40 40 8 8 40 6 $28,380 $570 $28,950 Respond to Contractor DCVR's 20 20 20 20 20 20 $16,100 $320 $16,420 Review and Generate Field Directives 40 40 30 30 20 $24,400 $490 $24,890 Attend Project Meetings by Teleconference(16 each) 40 40 40 $20,600 $410 $21,010 Review Contractor Claims&Change Orders 40 40 20 20 $19,100 $380 $19,480 Subtotal Task 1: 160 0 180 150 90 8 8 100 20 _ 6 $108,580 $2,170 $110,750 $110,750 Task 2-Site Inspections Periodic Construction Site Inspections(12 each) 16 32 16 16 16 $14,240 $2,400 $16,640 Substantial/Final Completion Inspections 2 16 16 $5,650 $400 $6,050 0 Assistance with Startup&Commissioning 12 20 30 4 4 $11,660 $230 $11,890 3- Subtotal Task 2: 30 0 68 62 20 4 0 16 0 0 $31,550 $3,030 $34,580 $34,580 Task 3-Record Drawings Plans 12 12 10 30 4 4 40 20 $15,940 $1,000 $16,940 ADEC Approval to Operate 4 4 - 2 $1,540_ $30 $1,570 Subtotal Task 3: 16 0 16 10 30 4 4 40 20 2 $17,480 $1,030 $18,510 $18,510 Task 4-Operation&Mainteannce Manual General Information 2 4 2 2 $1,510 $30 $1,540 Water System Description 2 4 2 $1,350 $30 $1,380 Water Supply,Controls,Treatment,&Storage 2 10 2 8 8 4 $5,320 $110 $5,430 Water Distribution System 2 8 2 4 $2,310 $50 $2,360 Generator&Fuel Storage System 4 $660 $10 $670 Safety 4 2 $980 $20 $1,000 Forms 4 4 $940 $20 $960 Manufacturer's Data 2 _ 12 2 $1,620 $30 $1,650 Subtotal Task 4: 8 30 16 8 _ 8 8 0 12 8 4 $14,690 $300 $14,990 $14,990 Total Task 1-41 214 1 30 1 280 1 230 1 148 1 24 1 12 1 168 1 48 1 12 1 $172,3001 $6,5301 $178,8301 $178,8301 Notes: 1)City of Seward personnel will serve as the Contracting Officer and provide the day-to-day on-site construction inspections,documentation,and photographs. 2)City of Seward will contract separately and coordinate all required special inspections for the building,water storage tank,and water/sewer utility construction. 3)City of Seward will track and coordinate all submittal reviews. 4)City of Seward will review and approve contractor pay estimates. CRW Engineering Group,LLC Page 2 of 2 Date 5/1/2015 or Department Department of Environmental \\� Y/� , I'IiL STATE• ���,, ;a of LA Conservation ` A �� s� DIVISION OF ENVIRONMENTAL HEALTH .117t Drinking Water Program - (_J OVERNUR BILL `1'AI.I:ER 43335 Kolifornsky Beach Rd.Suite II Opr Soldotna,Alaska 99669 ALAS Main:907.262.5210 Fax:907.262.2294 www.dec.otaska.gov May 12,2015 Mr.WC Casey Seward Public Works Director PO Box 167 Seward,AK 99664 RE: City of Seward Community Public Water System(PWS) PWS ID#240757 North Seward Water Storage Tank,Pumping Facility,and New Well(Well#007) Conditional Construction Approval and Separation Distance Waiver(PR#9545) Dear Mr.Casey: On March 23,2015,a request for approval to construct the North Seward Water Storage Tanks and Pumping Facility was received in this office. We have reviewed the request,which includes engineering plans and specifications,and grant conditional construction approval. This letter and the enclosed"Construction and Operation Certificate"are the written approval required by State of Alaska Drinking Water Regulations, 18 AAC 80.200(b). Use the noted public water system identification(PWSID#)and project(PR#)numbers to identify this project. Please review the conditions listed below and assure compliance with all conditions before beginning construction. Interim and Final Approvals to Operate may be withheld unless all conditions are met. You are required to obtain approval from this office before you serve water Project-specific conditions of approval: 1. Once coating of the tank is complete,please submit documentation from the NACE inspector verifying that all NSF-61 and manufacturer requirements,such as coat thickness,temperature, drying time,etc.were met. 2. The North Seward Water Storage Tank and Pumping Facility plans include the addition of a new well to the system at Tract C-6,Gateway Subdivision Add No.2.Project specification include requirements for a well flow test and water quality results.Before the well can be connected to the city of Seward,these results,as well as the make and model of the well pump,must be submitted to this department and approved by this office. Once the well is developed, the engineer must also confirm all source water protection requirements found in 18 AAC 80.015(b) were met. 3. Sheet CW4 of the drawings shows a proposed 8 inch sewer main above the water main at 105 Mr. Casey 2 May 12,2015 Station 420+30.The engineer has stated that the portion of the project proposing a new sewer main was removed,but some of the notes were left in place.When as-built drawings are submitted,please ensure the drawings reflect the absence of the sewer main. 4. The Aurora 410 Series Pump Model#413 is not NSF-61 listed,however,wetted components include cast iron,stainless steel,and bronze,and meet NSF Standard 372.This pump meets the limited footprint requirements in the pump facility which alternative NSF-61 listed pumps were not able to meet.The engineer has recommended this pump be used in the potable water system. 5. The North Seward water storage tank and pumping facility is designed to serve the city of Seward's water system.The water storage tank will add an additional 500,000 gallons to the system's storage capacity.All city water will be pumped to the North Seward water storage tank, where pumps will provide water to the Gateway Subdivision water storage tank,and the Lowell Canyon tanks can be gravity filled.This approval is limited to the construction of: SYSTEM MODIFICATION SUMMARY CLASSIFICATION Community PWSID#240757 WATER LINE 622 LF of 12 inch DIP CL52 Water Storage Tank to Afognak Avenue WATER LINE 2300 LF of 16 inch DIP CL 52 Distribution Line From Water Storage Tank WATER LINE 2345 LF of 16 inch DIP CL 52 Manifold Line to Water Storage Tank WATER LINE Each approximately 80 linear Water Storage Tank Draw Line feet of 16 inch DIP CL 52 Water Storage Tank Fill Line WATER LINE Each approximately 80 linear Spare Pipe (WST to Pump facility) feet of 6 inch DIP CL 52 Pressure Transducer Line WATER LINE Approximately 216 linear feet Proposed well to manifold line of 8 inch DIP CL 52 VALVE VAULT 16 inch Butterfly Valve 2 inch surge-suppression Valmatic air valve WATER STORAGE 500,000 Gallon Welded Steel Interior Coat: Max Tank level:229 ft TANK Tank,24 feet high,60 foot Three coat system Min tank level: 227 ft diameter of high solids polyamide epoxy coating PUMP FACILITY Grundfos Hydro MPC Three pumps in parallel, 150 gpm @ 120 ft Boosterpaq,Model MPC- TDH each E3CR20-3 Aurora 410 Series,Model 413 High Demand Pump, 1700 gpm at 135 ft TDH CHLORINE Siemens OSEC Hypochorite Culinox 999 Food Grade Salt GENERATION Generation Backflow Prevention:Watts 009 RPZ Assembly CHLORINE Two ProMinent Sigma/ 2 Expected Dose: 1 mg/1 METERING metering pumps PUMPS General conditions of approval: A minimum separation distance of 10 feet must be maintained between all drinking water lines and wastewater sewer lines and appurtenances (including 106 Mr. Casey 3 May 12,2015 sewer manholes),as measured from the closest edges of each component. If Separation Distances: this distance cannot be met,a separation distance waiver must be requested and granted prior to construction. Record drawings for the project must include details adequate to confirm that the prescriptive requirements contained in Drinking Water Regulations, 18AAC80.020(f,for crossings of wafer and sewer mains, have been met during cons/nation. All materials used in this water system that will contact potable water must be lead-free and approved for that use by NSF International, Materials: Underwriter Laboratories (UL),or an equivalent organization that evaluates products using NSF/ANSI Standard 61. In the absence of NSF/ANSI 61 certification,materials must be approved by the Department on a case-by-case basis prior to construction. Changes to approved Deviations from approved plans which affect capacity,flow,operation,major design of units,materials of major system components,or separation distances, plans: must be approved in writing by this office prior to their implementation. Flushing.Pressure Following construction,the system shall be flushed,pressure tested and Testing,and disinfected in accordance with standards approved by this office. Disinfection Water containing chlorine used during the disinfection or pressure testing Chlorinated processes requires proper management. This includes chlorine neutralization or Discharges: disposal in an appropriate wastewater treatment and disposal system. This water must be managed to avoid adverse effects on groundwater,surface water or the environment. This approval is valid for two years from the date of this letter. If the applicant fails to construct,install,alter,renovate,or improve the water system 2-Year Approval within two years,the approval is void and the plans and information required Duration and under 18 AAC 80.210(a)must be resubmitted for Department review and Extensions: approval. If during the two-year period,the site conditions,plans,and information,and requirements of this chapter do not change,and if the applicant pays the fee required by 18 AAC 80.1910(b)(12), the Department may grant the applicant an extension. Other Required This approval is also contingent upon your receipt of any other state,federal or Authorizations: local authorizations which are required for your project. You are required to obtain all other necessary authorizations before proceeding with your project. To Request Interim Approval to Operate Upon completion of construction and prior to serving water,the project engineer must certify the following information in the request for Interim Approval to Operate: Construction: Construction has been completed under the direction of a registered engineer in accordance with the DEC approved plans. Only lead-free and NSF/ANSI 61 listed materials were used in the Materials: construction and only NSF/ANSI 60 listed chemicals are provided for water treatment. Flushing,Pressure The system was successfully flushed,pressure tested,and disinfected in Testing and accordance using department approved methods. Disinfection: The system was properly disinfected and verified to be free of Coliform Disinfection bacteria in accordance with applicable AWWA standards or methods 107 Mr. Casey 4 May 12,2015 Verification Coliform approved by the department prior to construction. sampling: This project requires 13 satisfactory analytical results as follows: • Manifold line-2 sets of 2 samples taken at least 16 hours apart; from the middle and end of the new line. • Distribution line - 2 sets of 2 samples taken at least 16 hours apart; from the middle and end of the new line. • Line along Afognak Avenue—one set of two samples taken at least 16 hours apart;from the end of the new line. • Well Line-one set of two samples taken at least 16 hours apart;from the end of the new line. • One sample taken from the water storage tank 0 &M Manual An Operations&Maintenance manual has been provided to the water system operators. All applicable minimum separation distance requirements have been met Separation Distances: during construction. For conditional waiver approvals of separation distance requirements,provide confirmation that all conditions were met. Conditions: All conditions of construction approval have been met. To Request Final Approval to Operate At least 30 days prior to the expiration of the Interim Approval to Operate,submit the following information in the request for Final Approval to Operate: Record drawings, sealed, signed and dated by a registered engineer. The record drawings must include: • clear delineations of any changes or deviations from the Record Drawings: previously submitted and approved plans; • details verifying compliance with minimum separation distance requirements;and • construction details for all water and sewer main crossings. The Drinking Water Regulations,18 AAC 80.007,require that this system be actively supervised as described in the Operator Certification Regulations, 18 Operator: AAC 74,by operators who are certified in accordance with AS 46.30 and 18 AAC 74. For more information on Operator Certification requirements contact Ken Smith,Environmental Program Specialist(907-465-5136 or Inc n.Smitln(u%alaska. .) Outstanding Verification and applicable documentation demonstrating that all conditions Conditions: contained in this Conditional Approval to Construct have been met. Separation Distance Waiver Approval On March 23,2015, this office received a request for a waiver of the minimum separation distance required under Drinking Water Regulations, 18 AAC 80.020,between a community water line and a wastewater line at Station 415+60 on Hemlock Street for the North Seward Water Storage Tank and Pumping Facility. We have completed a review and find that the submitted information, justification,and endorsement of the project engineer adequately supports a reduction of the minimum separation distance required in 18 AAC 80.020. A crossing of the gravity sewer main above the proposed water main is approved. 108 Mr.Casey 5 May 12, 2015 The sewer main is currently existing,but the segment that crosses above the water main will be replaced with DIP CL 52 and encased in concrete.The sewer main will cross above the water main by a minimum of 18 inches.A wire mesh will be placed around the sewer main before encasing the sewer in order to minimize cracking.The water line joints will be at least 9 feet from sewer line joints.Class"C"bedding material will be used for both water and sewer lines,and both will be constructed in separate trenches. If the sewer main can be satisfactorily pressure tested,it is acceptable to pressure test between the two sanitary sewer manholes shown at the Oak Street and Hemlock Street intersection in place of encasing the sewer. Approval Limitations This waiver is valid only for the proposed use and the systems described in the waiver request dated March 23,2015,on file in this office. This waiver is valid as long as the drinking water contaminant concentrations do not exceed the maximum contaminant levels (MCLs)established in 18 AAC 80.300. This approval does not imply the granting of additional authorizations,nor obligate any federal, state,or local regulatory body to grant required authorizations. This is not an approval of omissions or oversights by this office or noncompliance with any applicable regulation. The Department's construction approval does not guarantee correctness of the functional design or waive the owner's responsibility for compliance with State regulations. Appeal Process Any person who disagrees with this decision may request an adjudicatory hearing in accordance with 18 AAC 15.195- 18 AAC 15.340 or an informal review by the Division Director in accordance with 18 AAC 15.185. Requests for an adjudicatory hearing or informal review may be made by mail, electronic mail,or facsimile. Informal review requests must be delivered to the Division Director, Elaine Busse Floyd,555 Cordova St.,Anchorage,AK 99501,within 15 days of receipt of this decision. Adjudicatory hearing requests must be delivered to the Commissioner of the Department of Environmental Conservation,Larry Hartig,410 Willoughby Ave.,Suite 303,Juneau,AK 99801, within 30 days of this decision. If a hearing is not requested within 30 days,the right to appeal is waived. More information on the Department's administrative appeals process can be found at httpJiw w w.dec.state.ak.us%commish/llev iew(;uidance.htm. Sincerely: a4-zt 611s"? Charity Bare Engineering Assistant II Enclosure: Construction and Operation Certificate cc: Pete Bellezza,l'.E.,CRW Engineering Group,LLC,w/enclosure via email Beth Verrelli,DEC MG&L,via email 109 STATE OF ALASKA 6 � W F DEPARTMENT OF ENVIRONMENTAL CONSERVATION 7� t * CONSTRUCTION AND OPERATION CERTIFICATE PUBLIC WATER SYSTEMS • A. APPROVAL TO CONSTRUCT— Plans for the construction or modification of the North Seward Water Storage Tank,Pumping Facility,and New Well,(PWSID 240757,Plan Review#9545),a Community Water System,located in Seward,Alaska,submitted in accordance with Drinking Water Regulations, 18 AAC 80.200 by Pete Bellezza,P.E./W.C.Casey,Seward Public Works Director,have been reviewed and are ❑ approved as submitted ®conditionally approved(see attached conditions) LGtati Q FA. 5//L//5 (Title) (Da a of pproval) If applicant fails to construct,alter,install,or modify the system within two years of the date of approval to construct,approval is void,and plans must be resubmitted for Department review and approval. B. APPROVED CHANGE ORDERS Change(contract order number or descriptive reference): (Reviewing Engineer) (Title) (Date of Approval) Change(contract order number or descriptive reference): (Reviewing Engineer) (Title) (Date of Approval) C. INTERIM APPROVAL TO OPERATE This section must be completed and signed by the Department before any water is made available for public use. The construction of the above-referenced water system was completed and approved for operation on_/_/ . The system is hereby granted INTERIM APPROVAL TO OPERATE for 90 days following the interim approval date. It is illegal to operate a public water system beyond 90 days without FINAL APPROVAL TO OPERATE from the Department. (Title) (Date of Approval) D. FINAL APPROVAL TO OPERATE Record drawings and other documents submitted to the Department,or an inspection by the Department,has confirmed that the above-referenced water system was constructed in substantial conformance with the approved plans. The system is hereby granted FINAL APPROVAL TO OPERATE. (Title) (Date of Approval) "CERTIFICATE_DWConstOpCert.doc"Revised 10/14 110 AMENDMENT NO.2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH CRW ENGINEERING GROUP,LLC FOR NORTH SEWARD WATER STORAGE TANK AND PUMPING FACILITY PHASE Q This AMENDMENT is made and entered into by and between the CITY OF SEWARD (hereinafter referred to as"City")and CRW Engineering Group,LLC(hereinafter referred to as "Contractor"). WITNESSETH WHEREAS, the City and the Contractor entered into a contract for professional services for the North Seward Water Storage Tank & Pumping Facility Phase II Project dated December 22, 2014 (hereinafter referred to as the"Contract");and, WHEREAS, the parties have the authority to amend the Contract pursuant to SECTION 26.0 CHANGES IN SCOPE OF WORK and desire to do so; NOW, THEREFORE, in consideration of the mutual promises and covenants contained in the contract,the parties do hereby agree that the Contract shall be amended as follows: 1. ORIGINAL CONTRACT,SECTION 3.0 FEES,shall be replaced with the following: 3.0 FEES. The total fees shall not exceed$598,244. This represents the original contracted amount of $319,430, an increase per Amendment No. 1 in the amount of $99,984 for Building Modifications and Exploratory Well Drilling as described in the Amendment No. I Scope of Services, an and increase per Amendment No. 2 in the amount of$178,830 for Construction Support Services as described in Amendment No.2 Scope of Services. 2. ORIGINAL CONTRACT, SECTION 4.0 SCOPE OF SERVICES, add the following to Section 4.0: "The Contractor shall add to the scope of work the services described in the attached Contractor's proposal dated May 1,2015 for Construction Support Services." 3. ORIGINAL CONTRACT, SECTION 5.0 SCHEDULE FOR COMPLETION, shall be replaced with the following: 5.0 SCHEDULE FOR COMPLETION, Final completion of the work shall be June 30, 2016. It is expressly agreed by both parties to this contract that all other portions of the contract shall remain in full force and effect in accordance with its terms. IN WITNESS WHEREOF, the parties have executed this Amendment on the date and at the place shown below. Page I of 2 111 City of Seward CRW Engineering Group,LLC By: Jim Hunt By: T Title: City Manager Title: mt.fIl l Date: Date: 57hZ/,20X,6- Attest: Johanna Kinney,CMC City Clerk (City Seal) Page 2 of 2 112 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH M.L. FOSTER & ASSOCIATES TO PROVIDE ADDITIONAL ENGINEERING SERVICES AND CONSTRUCTION SUPPORT FOR AN AMOUNT NOT TO EXCEED $58,000 WHEREAS,M.L.Foster&Associates has provided wastewater engineering services to the City of Seward for the past 7-8 years and has extensive knowledge of our wastewater system;and WHEREAS, M.L. Foster&Associates has been providing Construction Support under a Purchase Order,and further support services will bring M.L.Foster's Construction Support cost over $50,000,which requires City Council approval;and WHEREAS,M.L.Foster&Associates engineered the Sludge Removal and Disposal project at the Spring Creek and Lowell Point Wastewater Treatment Facilities in 2014;and WHEREAS,additional construction support is needed for the Sludge Removal and Disposal project; and WHEREAS,Public Works staff requests a professional services agreement with M.L.Foster &Associates to close out the Spring Creek Sludge Removal and continue to provide construction support for the Sludge Removal and Disposal Project at Lowell point. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is hereby authorized to enter into a Professional Services agreement with M.L.Foster&Associates to complete the necessary construction support services for the Sludge Removal and Disposal project for an amount not to exceed$58,000. Section 2. The Seward City Council hereby finds it in the public interest per Seward City Code 6.10.120(A)(8)to sole source this professional services contract. Section 3. Funding sufficient for this contract has been previously appropriated to the Sewer Lagoon Sludge Removal (SLSR) infrastructure accounts via resolutions and account numbers, respectively:Resolution 2014-066 into account no. 18321-8101,Resolution 2014-019 into account no. 18320-8101,Resolution 2012-056 into account no. 18322-8101,and Resolution 2014-080 into account no. 18323-8101. 113 CITY OF SEWARD,ALASKA RESOLUTION 2015-049 Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 26th day of May, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney,CMC City Clerk (City Seal) 114 Agenda Statement �,0c Meeting Date: May 26, 2015 1 r To: City Council 'cawP 1 ASU- Through: City Manager Jim H 4 From: Public Works Director, W.C. Casey Agenda Item: Authorize M.L. Foster & Associates to provide Engineering Services and Construction Support to the City of Seward. BACKGROUND&JUSTIFICATION: Currently, the City has Merrell Bros. Inc. contracted to perform sludge removal at the City's two wastewater treatment facilities. They will install additional aeration units(Bio-Domes)at the Lowell Point Wastewater Treatment Facility after inspecting and performing repairs that may be discovered during this process. Staff originally obtained Purchase Order's for M.L. Foster's creation of the scope of work, bid documents and project management for the Sludge Removal and Disposal project. Staff was optimistic that these services would fall under $50,000. It is now apparent they will exceed the $50,000 threshold. Public Works staff has been working with the City's Project Manager to perform a majority of the tasks related to the management of the project. Between the two departments most of the day-to-day oversight can be performed in-house,providing a cost savings to the City. There are several tasks that must to be performed,documented and/or inspected by a registered engineer. City wastewater staff needs additional engineering support for these services. The Scope of Services that M.L. Foster will provide are: • Review Submittals from Contractor • Response to Contractor and City Staff Questions • Minor Design Changes(Bio-Domes) • Weekly Reports to ADEC • Record Documentation(As-Builts) • Submit to ADEC for"Approval to Operate" • On-site Observation during Bio-Dome Installation • Weekly visits, as requested (Bio-Dome placement) • Survey Work for As-Builts • Services required by ADEC • Review Contractor Pay Requests M.L.Foster bills on a time and material schedule. The rates that M.L.Foster charge are equal to,or less than, the average rates from comparable qualified wastewater engineering companies. The engineering services they have previously provided have been invaluable to the City for planning, 115 permitting, and construction of multiple projects in the wastewater division. M.L. Foster is intimately familiar with the Seward facilities, has on hand multiple reports of Seward's WWTF's, has been working with ADEC on Seward's behalf for over 7 years and has delivered reports and assistance, professionally and in a timely manner. Having M.L. Foster continue to provide engineering services is advantageous to the City. INTENT: To enter into a Professional Services agreement with M.L. Foster & Associates to provide engineering services and construction support to the City of Seward for an amount not to exceed $58,000. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other(list): Facility Plan, 0&M Manual X FISCAL NOTE: Funding for engineering services and construction support for the Sludge Removal and Disposal project is available from within the Project Fund 1832X. In 2014,engineering and support services from Michael L. Foster and Associates totaled $61,029. \\ Approved by Finance Department: , 2 CJ 4,12/141 ATTORNEY REVIEW: Yes No X OOOdd Not Applicable eyr{e,.into a RECOMMENDATION: 049 proimstorwa The Seward City Council approve Resolution 2015- , authorizing the City Manager to u c{' M.L. Foster & Associates, for an amount not to exceed $58,000 for continued r Engineering Support Services related to the Lowell Point WWTF and the Spring Creek WWTF and assistance/contract support with the Sludge Removal and Disposal Project. 116 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2014-066 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT LEGISLATIVE GRANT #15-DC-144 FROM THE STATE OF ALASKA DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT IN THE AMOUNT OF$1,300,000 FOR DREDGING AND DISPOSAL OF SLUDGE ACCUMULATED AT THE LOWELL POINT SEWAGE LAGOON,AND APPROPRIATING FUNDS WHEREAS, the City has issued an Invitation to Bid for removal and disposal of accumulated sludge at the Lowell Point Wastewater Treatment Facility(LPWWTF); and WHEREAS,the Alaska State Legislature awarded the City$1,300,000 towards the sludge removal/disposal project; and WHEREAS,without accepting these grant funds,the sludge removal/disposal project will exceed the amount of funds that the City currently has available; and WHEREAS, Legislative capital project appropriations are administered through the State _ Department of Commerce, Community and Economic Development, Division of Community and Regional Affairs' (DCCED/DCRA), and Legislative Grant #15-DC-144 describes the terms and conditions of the award; and WHEREAS,Council acceptance and appropriation of these funds is necessary to spend State Legislative funding on this project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby accepts grant #15-DC-144 from the State of Alaska Department of Commerce and Economic Development, Division of Regional Affairs, Designated Legislative Grant in the amount of $1,300,000 for the purpose of construction management, construction and contract services related to the LPWWTF Sludge Removal/Disposal Project. Section 2. The City Manager is hereby authorized to execute a grant agreement with the State of Alaska Department of Commerce, Community, and Economic Development, Division of Community and Regional Affairs for grant#15-DC-144,which requires no matching funds from the City of Seward. Section 3. Funding in an amount not to exceed$1,300,000 is hereby appropriated from the State Grant Revenue account no. 18321-0000-5922,as follows: 1)$1,181,818 to contract services 117 CITY OF SEWARD,ALASKA RESOLUTION 2014-066 account no. 18321-0000-7009;and$118,182 to project overhead account no. 18321-0000-7305. The amount of$118,182 is appropriated to the General Fund project management account no. 01000- 0000-4310. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11`h day of August, 2014. THE CITY OF SEWARD,ALASKA 04tJ can Bardarson,Mayor AYES: Casagranda, Terry, Squires, Butts, Darling, Bardarson NOES: None .+ ABSENT: Keil ABSTAIN: None ATTEST: . J',hanna ' y, CMC/ l ity Clerk (City Seall•,,,,..,,1, •.••y of SE.y''•. • . V;.• o� far .,O% r? Fa•; • : • ' SEAT • : a - 118 Sponsored by: Hunt 1 �. CITY OF SEWARD,ALASKA RESOLUTION 2014-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A TRANSFER OF FUNDS IN THE AMOUNT OF $500,000 FROM THE WATER ENTERPRISE FUND TO THE WASTEWATER ENTERPRISE FUND FOR THE PURPOSE OF CONDUCTING MITIGATION EFFORTS AT LOWELL POINT SEWAGE LAGOON,AND APPROPRIATING FUNDS WHEREAS,operation of the Lowell Point Sewage lagoon was initiated in November, 1993, and the lagoon has operated for more than two decades without a significant investment in lagoon repair or sludge disposal costs; and WHEREAS, maintenance and repairs are necessary so that the Lagoon can perform as intended,which may require diversion of sewage into one cell while another cell is serviced,repair and/or installation of pumps and piping, and disposal of lagoon sludge, in addition to the design, engineering, and other associated repair work; and WHEREAS,City staff are developing plans for long-term repairs to the Lagoon,but in the immediate term, it is necessary to perform work to design, engineering, and perform odor-control measures at the Lagoon, necessitating an appropriation of$500,000; and WHEREAS,despite recent increases in the wastewater tariff aimed at addressing deferred maintenance needs of wastewater infrastructure,the cash balance in the Wastewater Enterprise Fund is approximately$689,600,and $311,000 in the Wastewater Major Repair and Replacement Fund (MRRF),for a combined total of approximately$1 Million at December 31,2013,still insufficient to cover major anticipated costs of repairs; and WHEREAS,the cash balance in the Water Enterprise Fund is approximately$2.7 Million, and in the Water MRRF,$212,500 for a combined total of nearly$3 Million at December 31,2013, which includes a recent loan repayment to the Fund of approximately $1.9 Million; and WHEREAS,the administration recommends a transfer of cash from the Water Enterprise Fund to the Wastewater Enterprise Fund MRRF to cover the costs of short-term mitigation efforts at the Lagoon,in an amount not to exceed$500,000. The Water Fund is considered a more appropriate source of funds given the shortfall of cash in the Wastewater Fund,given the shared customer base of ratepayers for both the Water and Wastewater Funds,as well as the relationship between system inflows(Water)and outflows (Wastewater). NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, that: 119 CITY OF SEWARD, ALASKA RESOLUTION 2014-019 Section 1. Funding in the amount of $500,000 is hereby appropriated from the Water Enterprise Fund net assets account no.701-0000-3071-0702 to the Wastewater MMRF Fund account no. 702-0000-3070-0701, for the purpose of conducting necessary short-term repair needs at the Lowell Point Sewage Lagoon, including performing design work, odor control, engineering, etc. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 10th day of February, 2014. THE CITY OF SEWARD ALASKA can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Butts, Bardarson NOES: None ABSENT: None ABSTAIN: None VACANT: One ATTEST: AL.L..A/ Jo anna Kinney,'CMC Ci Clerk ss..e t,,,e 4 E . te r ••�PoWq 3 �0'• • r n SEAL • = •41'E OF Alvvv2.0 ••.,,,,,,,. 120 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2012-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,STATING AN INTENT TO FUND$490,000 FOR THE LOWELL POINT AND SMIC LAGOONS SLUDGE REMOVAL PROJECT,SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT,AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN OFFER FROM THE ALASKA CLEAN WATER FUND WITH PAYMENTS SUBJECT TO ANNUAL APPROPRIATION WHEREAS, throughout 2010 and 2011, M.L. Foster and associates submitted reports evaluating the health and needs of Seward's sewer system including:Seward Wastewater Evaluation, Wastewater Facilities Operations&Maintenance Plan(a permit requirement)and a SMIC Lagoon Sludge Survey used to assess the health of the lagoon; and WHEREAS, the Lowell Point lagoon sludge has not been removed in 18 years; and WHEREAS,the SMIC lagoon sludge has not been removed in its 24-year life; and ` WHEREAS, removal and disposal of sludge are necessary for good housekeeping, will reduce energy consumption,free up displaced volume,may result in improved performance during peak organic loadings from transient populations and for protection of uninterrupted operation of the nearby prison; and WHEREAS, the Wastewater Department does not have adequate cash reserves in its wastewater fund to finance the project, however, according to the most recent Financial Capacity Assessment it has adequate cash flow in this fund to cover its repayment obligations; and WHEREAS, the City of Seward obtained the necessary financial assistance to complete these projects by way of obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Clean Water Fund; and WHEREAS, the loan money may be used to provide contractual services, engineering, design, planning, permitting,project support and construction management; and WHEREAS, accepting the total loan amount of $490,000 from the Department of Environmental Conservation Clean Water Fund is in the best interest of the city by allowing the city to utilize the funds to invest in critical infrastructure, follow regulations set forth by the Alaska Department of Environmental Conservation and remain in compliance with the current permit;and WHEREAS,the Lowell Point Lagoon will be out of compliance with the current permit if 121 CITY OF SEWARD,ALASKA RESOLUTION 2012-056 the sludge removal project is not completed by the end of 2012. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Manager is authorized to apply for a loan in the amount of$490,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the Lowell Point and SMIC Lagoons sludge removal and disposal. Section 2. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the$490,000 loan from ADEC,the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an agreement for the loan and a promissory note,with annual payments not to exceed$26,000. Section 3. This resolution shall take effect thirty (30)days following its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of July,2012. THE CITY OF SEWARD,ALASKA ..a 4** 01 _ A David Seaward, :yor AYES: Bardarson. Keil, Shafer, Casagranda, Seaward NOES: None ABSENT: Terry, Valdatta ABSTAIN: None ATTEST: — 'ohanna Kinney, CMC owes"",,•• City Clerk _44%.Of s•E�,q, e • (City Seal) 1,t 1. • SEAL • _ Sponsored by: Hunt jr.. CITY OF SEWARD,ALASKA RESOLUTION 2014-080 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPLY FOR,AND ACCEPT A LOAN FROM THE STATE OF ALASKA, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,ALASKA CLEAN WATER FUND, IN THE AMOUNT OF $1,200,000 FOR SLUDGE REMOVAL AND RENOVATIONS AT THE LOWELL POINT WASTEWATER TREATMENT FACILITY WHEREAS,the Lowell Point Wastewater Treatment Facility(LPWWTF)has operated for more than two decades without significant sludge removal or renovations; and WHEREAS,previous reports from M.L. Foster and Associates indicate an urgent need to have sludge removed and renovations completed to keep us in compliance with our permit; and WHEREAS,the City of Seward was issued a Notice of Violation in January 2014 due to the low levels of dissolved oxygen, higher than allowable levels of fecal coliform and odor emissions reported to DEC, during heavy loading periods; and WHEREAS,the City has issued an Invitation to Bid for sludge removal and renovations at the LPWWTF; and WHEREAS,in June 2014, Staff filed a questionnaire with DEC,requesting$1,200,000 for the Lowell Point Lagoon Sludge Removal &Renovation project; and WHEREAS, the City of Seward ranked number 1 on the Alaska Clean Water Fund Point Source Funding Priority list with our project;and WHEREAS,without applying for the loan and accepting the loan funds,the sludge removal and renovation bid will likely exceed the amount of funds that the City currently has available;and WHEREAS, the Wastewater Department does not have adequate cash reserves in its wastewater fund to finance the project, however, according to the most recent Comprehensive Annual Financial Report,with the recent rate increase of 5.2%, it has adequate cash flow to cover its loan repayment obligations; and WHEREAS, the Lowell Point Lagoon will be continue to be out of compliance with the current permit, during high peak loading, until the project is completed. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 123 CITY OF SEWARD,ALASKA RESOLUTION 2014-080 OF SEWARD,ALASKA that: Section 1. The City Manager is hereby authorized to apply for a loan from the State of Alaska Department of Environmental Conservation, Alaska Clean Water Fund, in the amount of $1,200,000 for the LPWWTF sludge removal and renovation project. Section 2. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the$1,200,000 loan from ADEC ACWF,the terms of its repayment over 20 years at a rate of interest equal to 1.5%,subject to annual appropriations,including but not limited to an agreement for the loan and a promissory note,with annual payments not-to-exceed $ 69,673. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of September, 2014. THE CITY OF SEWARD,ALASKA 4" can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Darling, Bardarson NOES: None ABSENT: Butts ABSTAIN: None ATTEST: Johanna Ki may, CMC ty Clerk (City Seal) •.••`"""'••. .••,�,1 OF SEC.4 # e � Q•i� •i n , : • % J i r 's %. r,�,.• #441 E,OF. A\f. . . 124 orTh.. Department of Environmental ; Conservation Y} of A XL) '\ A DIVISION Or WATER Engineering Support and Plan Review F t 1+ivF..l N'4il HI I tV.�I.VER ,��--- 43335 Kalifornsky Beach Rd.,Ste 11 /MAST' Soldotna,Alaska 99669 Main:907.262.5210 Fox:90!.2622294 wwv✓_ciec.gipsk o,gov Tracking#25107 February 27,2015 W.C. Casey,Public Works Director City of Seward 434 6th Avenue Seward, AK 99664 Re: Request for Approval of Modifications to the Lowell Point lagoon Lowell Point Wastewater Treatment Facility(LPWWTl) APDI S Permit Number:AK0021890 Approval to Construct 1)ear Mr.Casey: The Department received the City of Seward's request to modify the treatment system at the Lowell Point lagoon. Engineering plans and supporting documentation was submitted on behalf of the City,by Loren Leman,P.L.of Michael L Foster&Associates.The proposed change consists of installing forty (40)submerged aerated bio-film reactors (13io-Dome)with packaged blower system,to enhance treatment of wastewater in the lagoon.This design was reviewed for compliance with 18 AAC 72.225 and conformance with standard sanitary engineering principles and practices.Based on the information provided and your Engineer's recommendation,Approval to Construct is granted. A Construction and Operation Certificate is enclosed for your records.Main system components for this project are as follows: • Forty(40)4 Dome poo-gloo Bio-Domes (to be placed in Cell#1) • One(1)Sutorbilt Model5HPSS Rotary Lobe Blower Package(sized and designed to deliver 70 SCFM to 300 SCUM @ 9 PSIG) Advisories and Recommendations: 1. The following recommendations are offered in accordance with 18 AAC 72.220(d). It is recommended this treatment design be operated and maintained according to the manufacturer's guidelines.Facility owners are encouraged to keep records of all inspections and maintenance on their systems and make these records available to the Department upon request.As the Bio- Dome treatment units will be installed when the lagoon is drained and de-sludged,care must be taken to prevent perforating the liner. 2. This modification is intended to supplement the lagoon's existing static tube aeration system. 125 Mr.W.C.Casey 2 February 27,2015 3. A copy of the Operations&Maintenance(O&M)manual,that includes the lagoon's modifications,shall be provided to the Department. 4. This approval is contingent upon compliance with the conditions of Wastewater Disposal Regulations, 18 AAC 72.235,Construction Certification.The noted section of the regulations requires that a"Certification of Construction"be completed and submitted to the Department within ninety(90) days of completions of construction. Record drawings,submitted by your 11.ngineer,must indicate any changes or deviations from the approved plans to facilitate final review. A"Certification of Construction"form is enclosed for your use. 5. This approval is contingent upon your receipt of any other state,federal or local authorizations which are required for your project. You arc required to obtain all other necessary authorizations before proceeding with your project. Disclaimers and Appeals Process Approval of the submitted plans is not approval of omissions or oversights by this office or noncompliance with any applicable regulation. These modifications arc being implemented to improve performance of the existing Lowell Point lagoon.The Department's construction approval is based on industry-accepted design criteria and the City Engineer's recommendation but does not guarantee efficacy of the treatment. Any person who disagrees with this decision may request an adjudicatory hearing in accordance with 18 AAC 15.195—18 AAC 15.340 or an informal review by the Division Director in accordance with 18 AAC 15.185.Informal review requests must be delivered to the Division Director,555 Cordova, Anchorage,Alaska 99501,within 15 days of the permit decision. Adjudicator),hearing requests must be delivered to the Commissioner of the Department of Environmental Conservation,410 Willoughby Avenue,Suite 303,Juneau,Alaska 99801,within 30 days of the permit decision. If a hearing is not requested within 30 days,the right to appeal is waived.More information on the Department's administrative appeals process can be found at Inipitlycww.dt.c.sti,ic.ak.us/commishilteviewt;tlidanct.htnt. If you have any questions you may contact me at 907 262 3405,or by e-mail at N1()iii ,a la A. Sincerely, Monica'1'. English Environmental Engineering Associate Copy: Gene McCabe,ADI?C-IOW/ESPR Section Manager,Anchorage(electronic copy) Kara Kusche,Wastewater Compliance and Enforcement Program,Anchorage(electronic copy) Brian I)oyle,Wastewater Discharge Authorization Permitting Program,Juneau (electronic copy) Loren Leman,P.E.,Michael L. Foster&Associates G:\Kenai Shared\wastewater forms and letters\2014 WW Ltrs\25107 LPWWTF ATC.docx 126 -v OF 771.4• STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION CONSTRUCTION AND OPERATION CERTIFICATE FOR oF-1.�+r'`r DOMESTIC WASTEWATER DISPOSAL SYSTEMS A. APPROVAL TO CONSTRUCT (add iton of 40 submerged bio-film reactors) Plans for the construction or modification of _ City of Seward-Lowell Point Wastewater Treatment Facility_ _(ADECPlan_Tracking Number25102) _ __ ._ — — — — _.— _ domestic wastewater disposal system located in Seward _ — _ ,Alaska,submitted in accordance with 18 AAC 72.210 by _—Michael L.Foster&Associates-Loren Leman,P.E. have been reviewed and are approved. Q conditionally approved (see attached conditions). By -y - �` — -- Environmental Engineering Associate_ Feb.2_t,Lois Onica T. fish TITLE DATE If construction has not started within two years of the approval date,this certificate is void and new plans and specifications must be submitted for review and approval before construction. B. APPROVED CHANGE ORDERS Change(contract order number or descriptive reference) Approved by Date C. APPROVAL TO OPERATE The"APPROVAL TO OPERATE"section must be completed and signed by the Department before this system is made available for use. The construction of the domestic wastewater disposal system was completed on (date). The system is hereby granted interim approval to operate for 90 days following the completion date. BY -- - — - - -- -- — — TrnE DATE As-built/record drawings,submitted to the Department,or an inspection by the Department,has confirmed that the domestic wastewater disposal system was constructed in substantial conformance with the approved plans. The system is hereby granted final approval to operate. Environmental Engineering Associate BY Monica T.English Tmt' DATE Distribution: 1. Retain original for project file 2. Make copies for distribution (Rev 4/97) 127 State of Alaska DEPARTMENT OF ENVIRONMENTAL CONSERVATION � t� R` � i y Certification of Construction for _ Domestic Wastewater Systems Instructions: Within 90 days after the construction,installation,or modification of a project is completed,the owner,the contractor(s)responsible for constructing the project,and a registered engineer responsible for construction inspection,must complete and sign this form declaring that the project was constructed in accordance with the most recent Department-approved plans,or in accordance with the attached as-built drawings. If a project is being completed in phased construction,a map shall be attached showing that portion of the project being declared completed on the date stated in Section A-Owners Section. Completion of each phase of a project must be declared as it is completed. Additional Certification of Construction forms are available from any Department of Environmental Conservation office. Please type or print, except for signatures SECTION A-Owner's Section Name and brief description of the project Owner Name Owner Address City State Zip ADEC Project No. Date Project Completed: I certify that I am the owner of the above-referenced project. I further certify that this project was constructed in accordance with the latest plans submitted to and approved by the Alaska Department of Environmental Conservation(ADEC),or in accordance with the attached as-built drawings. I understand that I may be required to take remedial measures to correct any construction which was completed without prior ADEC approval,which departs from the approved plans, and which is found to be inconsistent with the applicable requirements of ADEC wastewater disposal regulations(18 AAC 72). Signature of Owner (Please Sign in Ink) Date Page 1 of 2 128 SECTION B-Contractor's Section I certify that I(or an individual under my direct supervision)have conducted an inspection of the project referenced in Section A,or portions of the project which I had the responsibility for constructing,and that to the best of my knowledge and information,the project,or those portions,was or were constructed in accordance with the latest plans submitted to and approved by the Alaska Department of Environmental Conservation,or in accordance with the attached as- built drawings. Printed Name of Contractor Signature of Contractor Date For multiple contractors, if applicable: Printed Name of Contractor Signature of Contractor Date Printed Name of Contractor Signature of Contractor Date SECTION C-Engineer's Section I certify that I(or any individual under my direct supervision)have conducted an inspection of the above referenced project,and that to the best of my knowledge and information,the project was constructed in accordance with: (check one of the following) [ ] the latest plans submitted to and approved by the Alaska Department of Environmental Conservation or [ ] in accordance with the attached as-built drawings. I further certify that: [ ] all conditions placed on the construction approval have been met as described briefly below: (if using a cover letter, you may write`see cover letter") Signature of Professional Engineer State of Alaska Date Responsible for Construction Inspection Professional Engineer (Please Sign in Ink) Registration Number Typed or Printed Name of Professional Engineer Page 2 of 2 129 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT,WITH JORDAN METER SERVICES,FOR THE READING OF ELECTRICAL METERS WITHIN THE CITY OF SEWARD ELECTRIC SERVICE AREA FOR AN AMOUNT NOT TO EXCEED $60,000, AND APPROPRIATING FUNDS WHEREAS,an agreement for the reading of electrical meters between the City and Jordan Meter Services expired on June 30th,2012;and WHEREAS, the City and Jordan Meter Services have mutually agreed to extend the agreement for an additional three(3)years as outlined in the agreement;and WHEREAS, the City of Seward published a Request for Proposals for Meter Reading Services,pursuant to SCC 6.10.215 and received only one proposal;and WHEREAS,the Jordan Meter Service has done an acceptable job and has not accrued any penalties as outlined in the agreement;and WHEREAS, the projected cost of these meter reading services, for all of 2015, is approximately$60,000; and WHEREAS,budget monies are available for this purpose. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council hereby authorizes the City Manager to enter into a contract with Jordan Meter Service for the reading of electrical meters within the City of Seward Service Area. Section 2. Funding,not to exceed$60,000 will be appropriated from electrical fund reserves account 15000-3009-7009. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward,Alaska, this 26th day of May 2015. 130 Council Agenda Statement Meeting Date: May 26,2015 0 ►' ��'o To : Council dtA51FP 1 Through: City Manager, Jim H ty 1� From: Utility Manager,John Foutz Agenda Item: To authorize the City manager to enter into a contract with Jordan Meter Service for the reading of electrical meters within the City of Seward Service Area and to allocate funds. BACKGROUND&JUSTIFICATION: The City of Seward contracts out the service of reading electrical meters inside city limits. The current contract started in 2012 and had an expiration date of June 30, 2015 with an option for an additional three year extension. The City of Seward published a Request for Proposals for Meter Reading Services, pursuant to SCC 6.10.215 and received only one proposal. The Jordan Meter Service has done an acceptable job and has not accrued any penalties as outlined in the agreement. INTENT: To authorize the City manager to enter into a contract with Jordan Meter Service for the reading of electrical meters within the City of Seward Service Area and to allocate funds. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan: Sections 2.2 X 2. Strategic Plan(Page 3): Economic Development X 3. Other(list): X FISCAL NOTE: The projected cost of these meter reading services, for all of 2015, is approximately$60,000. This agreement expires December 31, 2015 at which time the agreement may be extended for three years. Approved by Finance Department: kk A ma- ATTORNEY REVIEW: Yes X No RECOMMENDATION: 131 Council approve Resolution 2015- To authorize the City manager to enter into a contract with Jordan Meter Service for the reading of electrical meters within the City of Seward Service Area and to allocate funds. 132 AGREEMENT FOR THE READING OF ELECTRICAL METERS WITHIN THE CITY OF SEWARD, ALASKA ELECTRICAL SERVICE AREA This agreement (the "Agreement"), entered into this 1st day of July, 2015, by and between the City of Seward, a municipal Corporation, organized under and operating pursuant to the laws of State of Alaska, hereinafter referred to as the "City"; and Richard Jordan, hereinafter referred to as the "Contractor", as follows: WHEREAS, said Contractor has offered to service the entire City of Seward's Electrical Service area within a designated time frame in accordance with this Agreement; WHEREAS, the Agreement for reading electrical meters of businesses and residences and the delivery of door hangers of businesses and residences of the Seward Electrical Service area is hereby awarded to the Contractor. The following terms are agreed between the City and Contractor: 1. The Contractor shall report any violation of Title 14 of the City Code dealing with Utility ordinances to the Electric Utility Manager or his designated authority. 2. The Contractor may not sell, assign, sublet, or allow another to use the Agreement, unless the Electric Utility Manager gives consent in writing, with the approval of the City Manager. 3. The Contractor shall furnish and operate safe equipment. Such equipment and vehicles shall at all times throughout the term of the Agreement be operated and maintained in proper and safe working order to minimize risk or injury to persons and property. 4. For proper identification purposes when reading meters or delivering door hangers, the City will provide a City picture identification card, a vest, a jacket and magnetic identification for the vehicle, all of which will be required to be used by the Contractor when providing these services and cannot be used for other purposes. The City will provide no other equipment. 5. The Contractor shall service all sections of the Seward Electrical Service area on the route and schedule prescribed by the City. 6. The Contractor shall not commence with work under this Agreement until it has obtained the insurance required under this section. All coverages shall be with insurance carriers licensed and admitted to do business in Alaska. All coverages shall be with insurance carriers acceptable to the City. Insurance Provisions A. Workers' Compensation Insurance: The Contractor shall procure and maintain during the life of this Agreement, Workers' Compensation Insurance, including Employers' Liability Coverage, in accordance with all applicable statues of the State of Alaska. B. Commercial General Liability Insurance: The Contractor shall procure and maintain during the life of this Agreement, Commercial General Liability Insurance on an "Occurrence Basis" with limits of liability not less than $1,000,000 per occurrence and/or aggregate combined single limit, Personal Injury, Bodily Injury and Property Damage. Coverage shall include the following extensions: (A) Contractual Liability; (B) Products and Completed Operations; (C) Independent 133 Meter Reading Contract Page 2 of 5 Contractors Coverage; (D) Broad Form General Liability Extensions or equivalent; (E) Deletions of all Explosion,Collapse and Underground Exclusions, if applicable; (F)Per contract aggregate. C. Motor Vehicle Liability: The Contractor shall procure and maintain during the life of this Agreement, Motor Vehicle Liability Insurance, including applicable No-Fault coverages, with limits of liability of not less $1,000,000 per occurrence combined single limit Bodily Injury and Property Damage. Coverage shall include all owned vehicles, all non-owned vehicles, and all hired vehicles used in the contact. D. Cancellation Notice: Workers' Compensation Insurance, Commercial General Liability Insurance and Motor Vehicle Liability Insurance, as described above, shall include an endorsement stating the following: Thirty (30) days Advance Written Notice of Cancellation or Non-Renewal shall be sent to: City of Seward, Attn. Electric Department, PO Box 167, Seward,Alaska 99664. E. Proof of Insurance Coverage: The Contractor shall provide the City at the time the Agreement is returned for execution, Certificates of Insurance and/or policies, acceptable to the City, as listed below: a. One(1)copy of Certificate of Insurance for Workers'Compensation Insurance; b. One(1)copy of Certificate of Insurance for Commercial General Liability Insurance; c. One(1)copy of Certificate of Insurance for Vehicle Liability Insurance; and d. If so requested,Certified Copies of all policies shall be furnished. F. Continuation of Coverage: If any of the above coverages expire during the term of this Agreement, the Contractor shall deliver renewal certificates and/or policies to the City at least ten (10)days prior to the expiration date. G. Deductibles: The amounts of insurance deductibles are subject to approval by the City and are the responsibility of the Contractor. H. Special Policy Provisions: This insurance policy and any extension or renewals thereof must contain the following provisions or endorsements: a. Insurer waives all rights of subrogation against the City and its employees or elected officials. b. The insurance company or companies issuing the policy or policies shall have no recourse against the City, its elected or appointed officials, board members, employees or volunteers for the payment of any premiums or for assessments under any form of policy. c. There shall be no additional exclusions, limitations or restrictive provisions running to the Additional Insured based on any actions or activities of the Named Insured. d. Any failure to comply with the reporting or other provisions of the policies, including breach of warranties shall not affect coverage provided to the City, its elected or appointed officials, employees or volunteers. 134 Meter Reading Contract Page 3 of 5 e. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability. f. The City may review the limits of liability and coverage requirements on an annual basis and may require reasonable adjustments consistent with the public interest. The limits of liability may be increased by the City as deemed necessary, but shall not be less than as required in this Agreement. g. Failure to comply with the insurance requirements contained in this Agreement shall constitute a material violation and breach of the Agreement and may result in termination of the Agreement. h. By requiring insurance herein, the City does not represent that coverage and limits will be adequate to protect the Contractor and such coverage and limits shall not limit the Contractor's liability under the indemnities and reimbursement provisions of the Agreement. i. If the Contractor is self-insured, or partially self-insured by a retention in excess of$100,000 per claim, evidence of its status as a self-insured entity shall be provide to the City. If requested, the Contractor shall furnish acceptable financial information, the self-insured funding mechanism and other reasonable information as may be requested by the City. J. Additional Provisions a. The Contractor shall be responsible for workplace safety, including but not limited to, all federal,state and local laws,ordinances and regulations. b. To the fullest extent permitted by law, the Contractor agrees to defend, indemnify and hold harmless the City, its elected and appointed officials, employees, and volunteers against any and all liabilities, claims, demands, lawsuits, or losses, including costs and attorney fees incurred in defense thereof, arising in whole or in part, from the negligent actions, errors, or the omissions of the Contractor and/or the Contractor's officers, agents, subcontractors, and employees in any way connected or associated with this Agreement. c. The Contractor shall furnish to the City of Seward a Certificate of Deposit (CD) with a term of three (3) years, expiring no earlier than June 30, 2018, in the amount of $2,500.00 (accrued interest payable to the Contractor),payable to the City.An additional three(3) years may be required if the contract is mutually extended as outlined in section J(f). The City may, at its discretion, use the proceeds to pay the cost of performing meter reading services, or hiring another contractor to perform such services if the Contractor fails to perform this Agreement in an acceptable manner in accordance with the provisions of the Agreement. d. The Contractor shall be entitled to receive as compensation for the services rendered in accordance with the following fees: A monthly fee shall be paid in the amount of Three Thousand Six Hundred Twenty-eight Dollars and Eighty Cents ($3,628.80), based on a nominal 2,688 electric meters. A fee of Three Dollars and Fifty-five Cents ($3.55) shall be paid for each door hanger delivered to electric utility customers on the northwestern side of the City of Seward boundaries (approximately mile 0 to mile 2 Seward Highway, hereinafter referred to as Zone 1). Any door hangers delivered to electric utility customers in the remaining Seward Electric Service Area (hereinafter referred to as Zone 2) shall be paid at the rate of Three Dollars and Seventy-five Cents ($3.75) for each door hanger. The monthly 135 Meter Reading Contract Page 4 of 5 fee for the electric meters will be adjusted every year based on the number of meters on October 1st of each year. Meter reads outside of the regular cycle, hereinafter referred to as Initial Reads, shall be paid as Twenty-seven Dollars and Seventy-five Cents ($27.75) for each initial read in Zone 1 and Twenty-nine Dollars and No Cents ($29.00) for each initial read in Zone 2. e. The Contractor shall supply the City an accurate record of service performed for billing purposes as designated by the Electric Utility Manager or other City Representative. f. This Agreement is for the period commencing on 01 July 2015 and ending 30 June 2018. The City may at its discretion offer to extend this Contract for up to three (3) years under the same terms and agreements. If the City makes such an offer, the Contractor will have thirty (30)days to accept or refuse the offer. g. This Agreement anticipates that 100% of the meters will be accurately read each month between the 10th and 20th of the month. If the Contractor fails to read all of the meters, submits inaccurate data or fails to complete the reading within the specified time period, for whatever reason, including but not limited to, adverse weather conditions, deep snow or personal illness,the City at its discretion may have the meters read by its employees, and the City's cost deducted from the Agreement payments. However, the Contractor will not be responsible to read meters inaccessible due to customers actions such as, but not limited to, locked buildings, failure to remove snow covering the meter, and failure to restrain a vicious animal provided the Contractor has made a reasonable effort to read the meter and to contact the customer and has advised the City of problems. h. The terms and conditions of this Agreement may be declared terminated, null and void, at any time by written mutual consent; provided, however, that in the event of such a prior termination hereof, such termination shall take effect not sooner that ninety (90) days after the date of said written mutual consent,unless an earlier day is acceptable to the City. i. A penalty will be deducted from the Contractor's monthly earnings for incorrectly read or missed meter readings. A penalty equaling 5% of the Contractor's monthly earnings will be deducted from the Contractor's payment anytime the total errors determined by computing the sum of the incorrect readings and unread meters exceeds 11/2%but is less than or equal to 4% of the total number of meters required to be read that month. If the total errors exceed 4%, the penalty shall equal 5%of the Contractor's monthly earnings plus the City's direct and overhead cost to read or re-read the meter and re-bill the customers. An error rate in excess of 4% for three (3) consecutive months shall be cause for the City to terminate the contract and perform meter reading services or hire another contractor. j. The City may terminate this Agreement at any time if the Contractor defaults in any of its provisions, or if the Contractor fails to provide the services required by this Agreement in a proper and workmanlike manner. k. The Contractor shall be an independent contractor in the performance of work under this Agreement and shall not be an employee of the City. 1. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All amendments and changes must be in writing and signed by the parties. 136 Meter Reading Contract Page 5 of 5 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the City of Seward by its City Manager, as authorized by the City Council of the City of Seward, Alaska, with the corporate seal hereunto affixed on this day of June 2015 *************************************************************** CONTRACTOR THE CITY OF SEWARD,ALASKA BY: , L/, I■■, . . James Hunt,City Manager Office ATTEST: Johanna Kinney, City Clerk (City Seal) 137 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,ACCEPTING A GRANT IN THE AMOUNT OF$2923.20 FROM THE ALASKA HIGHWAY SAFETY OFFICE FOR THE DUI HIGH VISIBILITY ENFORCEMENT CAMPAIGN DURING THE 2015 ENFORCEMENT PERIODS OF INDEPENDENCE DAY (JULY 3-5, 2015) AND LABOR DAY (AUGUST 19-SEPT 7, 2015) AND APPROPRIATING FUNDS WHEREAS,the Seward Police Department has been awarded a DUI High Visibility Enforcement Grant from the Alaska Highway Safety Office, in the amount of$2923.20; and WHEREAS, the City is not required to provide any cash or in kind match; and WHEREAS, the use of these funds must be for the purpose of providing overtime saturation patrols by the Seward Police Department to conduct high-visibility DUI enforcement during Independence Day(July 3-5, 2015) and Labor Day(August 19-Sept 7, 2015); and WHEREAS,these funds will be of essential assistance to the Seward Police Department in the enforcement of DUI violations. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1.The City Manager is hereby authorized to accept the 2015 Alaska Highway Safety DUI High Visibility Enforcement grant in the amount of$2923.20 and enter into a grant agreement. Section 2.Funding in the amount of$2923.20 is accepted to grant revenue account#01000- 4252-0004 and appropriated to the police department's overtime account#01000-1210-6001 in the amount of$2743.20 and to the maintenance and repair account#01000-1210-7216 in the amount of $180.00. 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 26th day of May, 2015. 138 Agenda Statement 40v SEA Meeting Date: May 26, 2015 u.,1:' 0Q To: City Council City Manager Jim Hun From: Tom Clemons, Chief of Police Agenda Item: Alaska Highway Safety Grant (DUI High Visibility Enforcement) BACKGROUND&JUSTIFICATION: The Alaska Highway Safety Office,AHSO,has requested that the City of Seward participate in the Alaska Strategic Traffic Enforcement Partnership, ASTEP, DUI High Visibility Enforcement campaign by providing overtime saturation patrols.During selected enforcement dates,the Seward Police Department will conduct high-visibility DUI enforcement patrols. AHSO has awarded a grant in the amount of$2923.20 for Independence Day (July 2-5) and Labor Day (August 19-Sept 7), 2015. This program is a 100%grant funded project,with no local matching funds required. The terms of the grant and the grant budget are attached. INTENT: The intent of this grant is to reduce deaths and injuries caused by impaired drivers. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: 2020 Comprehensive Plan,Vol. I, page 14,Adopted I by City Council Resolution No 2005-26. X Public Safety "...to ensure the highest level of public safety within the community." Strategic Plan: City Strategic Plan, page 18,Approved by City Council Resolution No 99-043 2. Promote a safe community X "We are a community that promotes the public health safety and welfare of its residents by..., providing superior police, ... service" 3. Other(list): X FISCAL NOTE: There is no local funding required to match these grant funds. Approved by Finance Department: ,fin I A ATTORNEY REVIEW: Yes No X(Not Required) 139 RECOMMENDATION: City Council approve Resolution 2015- 05' ,accepting a grant from the Alaska Highway Safety Office in the amount of$2923.20,and appropriating funds. 140 `t, AY -, State of Alaska, DOT&PF -.-..- j ,,r.', P.O. Box 112500 Apr Notice to Proceed Juneau,AK 99811-2500 x , Ph:907-465-8944 r i ;. Fx:907-465-6984 dot.alaska.gov/highwaysafetv Grantee Name and Address: Title!Short Description: Seward PD DUI High Visibility Enforcement 410 Adams Street Seward,AK 99664 Supplemental Agreements: Check all that apply. Ell Enforcement Agreement ❑ Law Enforcement Liaison Agreement Action Requested: El New Setup El Add Funds ❑ Reduce Funds ❑ Closure(Decrease) LI Revision of Funds: Please provide explanation of funding change and budget breakdown. FUNDING SUMMARY Budgets Approved for this NTP Current Budget AHSO Increase Budget Category Totals (Decrease) _ Revised Budget Totals (100)Personnel Services $ 1,010.85 $ 1,371.60 $ 2,382.45 (200)Travel&Per Diem $ - $ - $ - (300)Contractual Services $ 90.00 $ 90.00 $ 180.00 (400)Commodities $ - $ - $ - (500)Equipment $ - $ - $ - (Indirect Costs) $ $ - $ - TOTALSI $ 1,100.85 1 $ 1,461.60 TOTAL AMOUNT AUTHORIZED TO DATE $ 2,562.45 Explanation of Approved Grant Application&Activity Dates: Establish funds for FFY15 Independence Day DUI HVE Event. **Reimbursement for this event cannot exceed the amount of this NTP** ____�_ AHSO USE ONLY Activities as outlined in the FFY 2015 Grant Application covering the period of 10/1/14-9/30/15 Project Control Programming (NTP#: 2 _ Grant#: 164AL-15-01-00(A)-9 Collocation Code Program Code Ledger Code Account Code Full Grant Amount: $__ 4,024.05 24462634 57870 30029882 77436 FAIN#: 18X5201640AK Project# ❑ RSA(Interagency) El EN(Non-Interaaencv) DUNS#: 037996634 76158 2555yy CFDA#: 20.608 Project Control Programming Approved Pro:am Control : .ent Na e:Sumer Todd-Harding Accounting Technician Name:Stefanie B'ngham 70. .../A �i., /Ai. Al. //.. 41145 r /15 m.Trut e 1 a.to Signat re Date You may proceed with the activities f• e Categories and specific Tasks enumerated above in the Funding Summary. Any activities beyond the written scope and/or any costs above the price estimate in our Agreement require prior AHSO approval and a Project Revision. Actual cost underrun of the Contract Amount for any Category shall not routinely accumulate for other Categories. AHSO reserves the right to retain or reallocate any remaining funds resulting from such cost underruns. Conditions to this agreement are as outlined in the "Agreement Conditions"Section 3 of the application for grant,CONDITIONS ARE A PART OF THE PROJECT AGREEMENT AND,AS SUCH,ARE BINDING ON ALL PARTIES TO THE PROJECT AGREEMENT. This NTP is cumulative and supersedes all prior NTPs for this Agreement. The AHSO Administrator for this NTP is: Tammy Kramer Issued for the Contracting Agency per ADOT&PF Policy#01.01.050 by: Accepted for the Grantee by: Tammy Kramer y Signature I ate Signature Date Alaska Highway Safety Office Form, Revision 10/10/13 141 '0+Y s�. State of Alaska, DOT&PF ,.> . / 're", P.O. Box 112500 Notice to Proceed Juneau,AK 99811-2500 - j Ph:907-465-8944 Fx:907-465-6984 0 dot_alaska.00v/highwaysafety Grantee Name and Address: Title/Short Description: Seward PD DUI High Visibility Enforcement 410 Adams Street Seward,AK 99664 Supplemental Agreements: Check an that apply. p Enforcement Agreement ❑ Law Enforcement Liaison Agreement Action Requested: ❑ New Setup p Add Funds ❑ Reduce Funds ❑ Closure(Decrease) ❑ Revision of Funds: Please provide explanation of funding change and budget breakdown. FUNDING SUMMARY Budgets Approved for this NTP Current Budget AHSO Increase Bud!et Cate.o Totals Decrease Revised Buds et Totals (100)Personnel Services $ 2,382.45 $ 1,371.60 $ 3,754.05 (200)Travel&Per Diem $ - $ - $ - (300)Contractual Services $ 180.00 $ 90.00 $ 270.00 (400)Commodities $ - $ - $ - (500)Equipment $ - $ - $ - (Indirect Costs) $ - $ - $ - TOTALS! $ 2,562.451 $ 1,461.60 TOTAL AMOUNT AUTHORIZED TO DATE $ 4,024.05 Explanation of Approved Grant Application&Activity Dates: Establish funds for FFY15 Labor Day/National Impaired Driving Crackdown DUI HVE Event. **Reimbursement for this event cannot exceed the amount of this NTP** AHSO USE ONLY _ Activities as outlined in the FFY 2015 Grant Application covering the period of: 10/1/14-9/30/15__ Project Control Programming NTP#: 3 Grant#: 164AL-15-01-00(A)_9 Collocation Code Program Code Ledger Code Account Code Full Grant Amount: $ 4,024.05 24462634 57870 30029882 77436 FAIN#: 18X5201640AK Project# ❑ RSA(Interagencv) 0 EN(Non-Interagency) DUNS#: 037996634 76158 555144 CFDA#: 20.608 Project Control Programming Approved Pr..,.m Control A•-nt am•:Sumer Todd-Harding Accountin• Technician Name:Stefanie Bingham•OWE. I 11 - ..4. / 1 1 i J i 5 i/r� .�! �f 6 D a A Signet re D-te You may proceed with the activities for 05 ategories and specific Tasks enumerated above in the Funding Summary, Any activities beyond the written scope and/or any costs above the price estimate in our Agreement require prior AHSO approval and a Project Revision. Actual cost underrun of the Contract Amount for any Category shall not routinely accumulate for other Categories. AHSO reserves the right to retain or reallocate any remaining funds resulting from such cost underruns. Conditions to this agreement are as outlined in the "Agreement Conditions"Section 3 of the application for grant,CONDITIONS ARE A PART OF THE PROJECT AGREEMENT AND,AS SUCH,ARE BINDING ON ALL PARTIES TO THE PROJECT AGREEMENT. This NTP is cumulative and supersedes all prior NTPs for this Agreement. The AHSO Administrator for this NTP is: Tammy Kramer Issued for the Contracting Agency per ADOT&PF Policy#01.01.050 by: Accepted for the Grantee by: Tammy Kramer ),/i ilia h.,_ -I4,0/t om `t IGI j15 Signature ( Dte Signature Date Alaska Highway Safety Office Form, Revision 10/10/13 142 From:Seward Police Dapertment 9072248480 04/15/2015 11:27 ti 343 r' 002/002 orP e Supplemental - Juneau PAOK 9980112500 . DUI Enforcement Agreement Pt,:907-465-4070 r , _. -; Fx:907-465-6984 dot alaska qov/hlghwaysatety Grantee Name and Address: Title/Short Description: Seward PD High Visibility Enforcement 410 Adams Street Seward,AK 99664 Action Requested ❑ New Setup a Revision of Agreement: .:•lnas••prav,r12 change In lir:Fm)r•..1,,,r:.Pl.:-.ti i're;kdozn. ACTUAL COST OF OVERTIME TO INCLUDE BENEFITS IS NOT TO EXCEED , 4,024.05 THE FOLLOWING AMOUNT INCLUDING VEHICLE USAGE nforcement -Ian :reakdown Budget of Time/Hours Enforcement Period EXPENSE ITEMS HOURS AVERAGE HOURLY Bud set Halloween Hours $ - $ _ O•tional October 31st 2014 ril irgrilfrraillill 0.00 6.00 _ Enforcement Period Total: $ - Holiday ours $ 67.39 $ 1,010.85 ;ire'uiredl December 10th-31s 2014 1=2=7:111.1111 15.00 $ _ •.00 $ 90.00 Enforcement Period Total: $ 1,100.85 Independence Day Hours $ 91.44 $ 1,371.60 Jul 4th 2015 • 15.00 IIEJIIIIIIIIIIIIIIIIIMEIMUIIIIIIIIIIIIIUM Enforcement Period Total: S 1,461.60 Labor Day/Nat'l Impaired Driving Crackdown Hours $ 91.44 $ 1,371.60-1 (Re uired Au•ust 19th-Se•tember 7th 2015 graMMEMIll 15.00 •.00 9t.t t ■ -- - — -------- Enforcement Period Total: $ 1,461.60 ,, Hours $ - $ _ 0.00 $ 6.00 Enforcement Period Total: $ - Hours Vehicle Usa•e 0.00 $ 6.00 - Enforcement Period Total: $ Total Hours $ 3,754.05 Total Vehicle Usa,e 270.10 GRAND TOTAL of Enforcement Periods $ 4,024.05 Purpose/Objectives: In order to reduce deaths and injuries caused by impaired drivers and to increase compliance with Alaska's primary seat belt law,the Grantee will conduct high-visibility seat belt and DUI enforcement as detailed in the Alaska Strategic Enforcement Partnership Enforcement Plan submitted to the Alaska Highway Safety Office in April 2006.The Seward Police Department agrees to participate in the following enforcement blitzes from October 1,2014 through September 30,2015.As a guildiine,a minimum of three(3)self-initiated contacts per hour funded with a'desired outcome'of contacting as many violators as possible should be made.Allowable use of funds is for overtime salary @ 1.5 times the normal rate,wages and benefits of commissioned personnel in direct support of operational activity.To receive reimbursement for personnel services the department must provide activity sheets,overtime hours worked and the overtime hourly rates for each officer. At reement are as outlined above for FFY 2015 Grant period of October 1,2014-Sep. 30, 2015. Project Control DUI Enforcement Agreement Approved Accepted for the Grantee by: Pr... :m Conti. • •e Nome: umer Todd-Hardin 47/7a7-1,)p.--. JJT. f) &SIC i . ILA a' Al iL V . 1/P 16. Signa Date tale You may proceed with the activities for the Categories and specific Tasks enumerated in the above Enforcemle Agreement. Conditions to this agreement are as outlined in the"Agreement Conditions"CONDITIONS ARE A PART OF THE PROJEC •GREEMENT AND,AS SUCH,ARE BINDING ON ALL PARTIES TO THE PROJECT AGREEMENT. This Enforcement Agreement is cumulative and supersedes all prior Enforcement Agreements. The AHSO Administrator for this NTP is: Tammy Kramer Issued for the Contracting Agency per ADOT&PF Policy#01.01.050 by:Tammy Kramer id9kleNRFjlwav Safety ffice Form, Revision 10/1 , 143 Jackie Wilde From: Doreen Valadez Sent: Tuesday, May 05, 2015 3:59 PM To: Jackie Wilde Cc: Naneth Ambrosiani Subject: DUI grant stuff Attachments: 2015 DUI Agenda Stmt.doc; DUI Resolution.doc;SDpd Oce15042314534.pdf;SDpd Oce15042314535.pdf;SDpd Oce15042314536.pdf Just for info,$1100.85 was accepted in a Dec 2014 resolution. (see the DUI Enforcement Agreement). Any questions, see Naneth. LT Doreen R Valadez Seward Police Department PO Box 767 Seward, AK 9966zf (907) 22g-3338 • • 4 / 1 4 1 144 MEMORANDUM Meeting Date: May 26, 2015 From: Johanna Kinney, City Clerk Y yoc SFtyq Agenda Item: Appointments to the Historic Preservation '•:, ;> Commission '?i q�AS�P BACKGROUND&JUSTIFICATION: There are currently two seats becoming vacant on the Historic Preservation Commission for council appointment. The vacancy was noticed for the entire month of April,2015 with a deadline of May 15,2015. Three citizens have submitted their applications: Linda Lasota,*Sandie Roach',and Frederick Woelkers. Their applications are included in the packet for your review. Council will need to appoint two people from the three applicants that will serve terms expiring in May,2018. The mayor and council will have ballots with all three names on them. Each member should vote for only two applicants. Please pass the voted ballots to the City Clerk and they will be read aloud and tallied. In accordance with Seward City Code 2.10.40,2.30.310,and Seward Charter 3.5,an applicant must receive at least four of the votes to be appointed. SCC 2.30.310 states the council appoints by ballot voting if there is more than one applicant for the position. RECOMMENDATION: Council conducts a vote to determine which applicants should fill the Historic Preservation Commission vacancies with terms expiring in May of 2018. *Clerk's Note: Applicant Sandie Roach'is requesting her application be withdrawn from consideration at this time. While Roach'would have had to submit a withdrawal request in writing prior to the application deadline to be formally withdrawn from the process, she is requesting to not be appointed at this time. 145 %Or s fh `9 , 41.ASV.;' i HISTORIC PRESERVATION COMMISSION NOTICE OF VACANCY The Seward City Council is seeking applications from citizens of Seward and the surrounding area, interested in serving on the Historic Preservation Commission (HP). There are two (2) seats available terms expiring in May, 2018. The Historic Preservation Commission meets at least twice a year in the City Council Chambers, and at such other times as may be requested by the commission Chair or the Administration. Each commissioner serves for a three (3) year term. Application packets are available from the City Clerk. Completed applications must be filed with the clerk no later than 5:00 p.m., Friday, May 15, 2015. Posted Tuesday,April 6,2015 City Hall Bulletin Board U.S.Post Office Harbor Master's Office 146 CITY OF SEWARD, ALASKA APPLICATION FOR THE SEWARD HISTORIC PRESERVATION COMMISSI• I RECEIVED {- NAME: tvolxr L, S o-f 4 APR 222015 STREET ADDRESS: 3 3'1 S S 8e-M �i2 e014 d OFFTME of rhE P.O. CLERK MAILING ADDRESS: /301-- 1Z 6 �, Seta:lied , NI( E-MAIL ADDRESS HOME TELEPHONE: 1°7- X)--(1-113°0 Q o -30- 1 x 5 6 62,11 LENGTH OF RESIDENCY IN THE SEWARD AREA: o9'/yagro PRESENTLY EMPLOYED AS: ON/ULlf125'It-y of A-OsICA - Sewr42ci Motel(' List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the Commission: f�RC1t c4 p iCrr - dYZ4 sn1&N Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involvement: /r S , hn iE SEI?vEd 0 ?e srr IevA--/-io,u Coluh 1 ss'1obus wog¢kE !N CpN S+NAA C{i o w 11.1 Z1 C YW no:: I am specifically interested in serving on the Historic Preservation Commission because: love his kieic p c&:s my CV rg_S .7" /1-t& Rewc6-ti hiS1Die/ /N d GJO2,6‘11-2 Have you ever served on a similar commission elsewhere? Yes or°Nc If so, where? And when? If appointed, are you willing to: • Do historic research? NO • Work on preparing grant applications? 110 NO • Work on writing historic register nominations? IMO NO • Attend historic preservation workshops? ES NO waa �a ai2Aj oZD,d O 15 SIGNATURE DAT 147 8 t 74"--22-0.774:49 ?"--w-r?/S.° (1:Y. r-rd--"7 _§,/n b/ (777--,Z Tu. -a-7 P` r 9-z7-10 ?7r-7 -?-3,-V 7-7-©7 (-11 r2/-O 7 7 01-V 7 c----3-7,-29 70/ -)7-0 rn,o )14313 A113 3H1 j0 301 j j0 5LOZOg �ldW 497A/A 03n1303a / O 0 �° CITY OF SEWARD, ALASKA RECEIVED APPLICATION FOR THE MAY 14 2015 SEWARD HISTORIC PRESERVATION COMMISSIO OFFICE OF THE CITY CLERK NAME: rn/t D ) 0 Qe `L STREET ADDRESS: 0711 0 4 (! da, L.Sei.061 MAILING ADDRESS: -P 0 . eox 3,211 LAJa_r _p E-MAIL ADDRESS Est La ski @31-ria Le_ e)i-YL) HOME TELEPHONE: 90'7 . 36O . /.2_9 to LENGTH OF RESIDENCY IN THE SEWARD AREA: _ ,�� PRESENTLY EMPLOYED AS: er f'ed..) List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the Commission: ^01-112..0 4 v gam / -e r a CO/lam e CloCe Ef Oaf e nn,&e_A_ "nfrn )f)r h/P e07771)-7/S51.6-12 Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involvement: Ou.rrek- Thefrrl,6„ i`Ks cvr r c /4e c5'e /I I am specifically interested in serving on the Historic Preservation Commission because: ��O�ni�2GlJ2L <<wa/1-'ek of /- c/ /'- .. fey -ese ° E., S�1.)a eul raL /vs.>le r Have you ever served on a similar commission elsewhere? or No If so, where? Seta Ld_, /713 And when? ea'dy of 7 ( If appointed, are you willing to: • Do historic research? E8� NO • Work on preparing grant applications? _ES) NO • Work on writing historic register nominations? _ES-, NO • Attend historic-pteservation workshops? ES �NO f`7 IGNATURE DATE 149 CITY OF SEWARD, ALASKA RECEIVED APPLICATION FOR THE MAY 15 2015 SEWARD HISTORIC PRESERVATION COMMISSIO OFFICE OF THE CITY CLERK - retie 4 it STREET ADDRESS:_ 7 i MAILING ADDRESS: j Jsm� '1. // E-MAIL ADDRESS T' ,14/ eard Qv-c-i HOME TELEPHONE: 7D7 o-?-'1 2-761 LENGTH OF RESIDENCY IN THE SEWARD AREA: WY- f-p fiteSSA-4-, PRESENLY EMPLOYED AS: List any special training, education or background such as grant writing, history, architecture nr archeology, which may help you as a member of the Commission: Lt./ :744 -y� £� Si- (As is Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involvement: )45 - /76 xdfr _ 1)-7 i'Lt-t- 445Zec ✓L� 2-eci9vr7 - U 4--0 6 ey- I am specifically interested in serving on the Historic Preservation Commission because: AS:f -5-64/7,ce/- 6 cc*A. 6)-1 4664 a-74 #‘5,i9P-y) 1/P'ss,l 4 ova./ s Have you ever served a similar commission e where? Y( or No If so, where? / - /W 4t1cv And when? 76-5 dos If appointed, are you willing to: • Do historic research? NO • Work on preparing grant applications? tie NO • Wor in writing historic register nominations? NO • A.- d historic .reser ion workshops? tiO NO ((// - ATUR DAT 150 4 of sF�, 9 AGENDA STATEMENT Meeting Date: May 26, 2015 From: Johanna Kinney,City Clerk V Agenda Item: Approval of the application for Liquor License# 5399 for The Sea Bean, LLC BACKGROUND&JUSTIFICATION: The City Council has an opportunity to object application to the application of a Restaurant/Eating-Place Public Convenience Liquor License#5399 for The Sea Bean,LLC. The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license application for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license application, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Approve the Restaurant/Eating-Place Public Convenience Liquor License #5399 for The Sea Bean,LLC. 151 C. of sgttq d�AS�P MEMORANDUM Date: May 26,2015 To: Kris Erchinger Finance/Leases Kari Atwood Finance/Public Utilities Chief Tom Clemons Police Department Chief li dd I e pot/ Fire Department From: Johanna Kinney, City Clerk RE: Verifying Compliance Of The iquor License Application For The Sea Bean The following business has applied for a Restaurant/Eating-Public Convenience liquor license. Please review for compliance with all utilities, lease payments and assessments. Thank you. Name of Business: The Sea Bean, LLC Type of License: Restaurant/Eating-Public Convenience License Number: #5399 Department Status Initials Finance/Leases OA, Finance/Utilities 495 Police Chief 0 (C Fire Chief IP&" (4) 152 q KENAI PENINSULA BOROUGH 144 North Binkley St., Soldotna,Alaska 99669-7520 �= rtr � .r�� c .;,.; : 1-800-478-4441, Ext. 2160• 907-714-2160 • Fax 907-714-23881u, ; t c� www.kpb.us • assemblyclerk @kpb.us '� RECEIVED `YEAR S MAY 1 5 2015 OFFICE OF THE JOHNI BLANKENSHIP, MMC CITY CLERK BOROUGH CLERK May 15, 2015 Ms.Sarah Oates Records& Licensing Supervisor Alcoholic Beverage Control Board 2400 Viking Drive Anchorage,AK 99501-1768 RE: Non-Objection of New License Application Business Name The Sea Bean License Type • Restaurant/Eating Place-Public Convenience License Location City of Seward License No. • 5399 Dear Ms. Oates, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the issuance of this license. Should you have any questions, or need additional information, please do not hesitate to contact our office. Sincerely, o Johni Blankenship, MMC Borough Clerk JB/klr cc: City of Seward Applicant KPB Finance Department File 153 ■ 4,44).* ���j/..e THE STATE Department of Commerce, Community, ,t.„ \\r /' � �ALAcI�;A and Economic Development .1 ALCOHOLIC BEVERAGE CONTROL BOARD 1€iVi i.,�-t GOVERNOR BILL WALKER 550 W 70h Avenue Ste. 1600 O ALAS Anchorage,Alaska 99501 Main:907.269.0350 TDD:907.465.5437 Fax:907.334.2285 May 14,2015 City of Seward Attn: Brenda Ballou&Johanna Kinney,City Clerks VIA Email:bballou @cityofseward.net jkinney( cityofseward.net Cc: joannena.borough.kenai.ak.us jblankenship @borough.kenai.ak.us kringna,borough.kenai.ak.us The Sea Bean,LLC—Restaurant/Eating Place-Public Convenience#5399 DBA The Sea Bean kNew Application ❑ Transfer of Ownership ❑ Transfer of Location Restaurant Designation Permit ❑ DBA Name Change We have received an application for the above listed licenses(sec attached application documents) within your jurisdiction. This is the notice as required under AS 04.11.520. Additional information concerning filing a"protest"by a local governing body under AS 04.11.480 is included in this letter. A local governing body as defined under AS 04.21.080(11)may protest the approval of an application(s)pursuant to AS 04.11.480 by furnishing the board and the applicant with a clear and concise written statement of reasons in support of a protest within 60 days of receipt of this notice. If a protest is filed,the board will not approve the application unless it finds that the protest is "arbitrary,capricious and unreasonable". Instead,in accordance with AS 04.11.510(b),the board will notify the applicant that the application is denied for reasons stated in the protest. The applicant is entitled to an informal conference with either the director or the board and,if not satisfied by the informal conference,is entitled to a formal hearing in accordance with AS 44.62.330- 44.62-630. IF THE APPLICANT REQUESTS A HEARING,THE LOCAL GOVERNING BODY MUST ASSIST IN OR UNDERTAKE THE DEFENSE OF ITS PROTEST. Under AS 04.11.420(a),the board may not issue a license or permit for premises in a municipality where a zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages,unless a variance of the regulation or ordinance has been approved. Under AS 04.11.420(b) municipalities must inform the board of zoning regulations or ordinances which prohibit the sale or consumption of alcoholic beverages. If a municipal zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages at the proposed premises and no variance of the regulation or ordinance has been approved, please notify us and provide a certified copy of the regulation or ordinance if you have not previously done so. 154 - - Protest under AS 04.11.480 and the prohibition of sale or consumption of alcoholic beverages as required by zoning regulation or ordinance under AS 04.11.420(a)are two separate and distinct subjects. Please bear that in mind in responding to this notice. AS 04.21.010(d),if applicable,requires the municipality to provide written notice to the appropriate community council(s). If you wish to protest the application referenced above,please do so in the prescribed manner and within the prescribed time. Please show proof of service upon the applicant.For additional information please refer to 3 AAC 304.145,Local Governing Body Protest. Note:Applications applied for under AS 04.11.400(g),3 AAC 304.335(a)(3),AS 04.11.090(e),and 3 AAC 304.660(e)must be approved by the governing body. Sincerely, e Jane Sawyer Business Registration Examiner 907-269-0359 Janc.sawyer @alaska.gov 155 State of Alaska Alcoholic Beverage Control Board Date of Notice: May 14,2015 Application Type: NEW xx TRANSFER Ownership Location Name Change Governing Body: City of Seward Community Councils: None License#: 5399 License Type: Restaurant/Eating Place-Public Convenience D.B.A.: The Sea Bean Licensee/Applicant: The Sea Bean,LLC Physical Location: 225 4th Avenue,Seward,AK 99664 Mail Address: P.O.Box 2573,Seward,AK 99664 Telephone#: 907-224-6623 EIN: 20-8017177 Corp/LLC Agent: Address Phone Date and State of Good Incorporation standing? The Sea Bean,LLC P.O.Box 2573 907-224-6623 12/10/2006 Yes Seward,AK 99664 Please note:the Members/Ofcers/Directors/Shareholders(principals)listed below are the principal members. There may be additional members that we are not aware of because they are not primary members. We have listed all rincipal members and those who hold at least 10%shares. Member/Officer/Director. DOB Address Phone Title/Shares(%) Matthew Hershock 318 6th Avenue 907-422-7125 100°,'o Seward,AK 99664 If transfer application,current license information: License#: Current D.B.A.: Current Licensee: Current Location: Additional comments: Restaurant Designation Permit Application attached 156 Page 2 A local governing body as defined under AS 04.21.080(11)may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the board and the applicant with a clear and concise written statement of reasons in support of a protest within 60 days of receipt of this notice. If a protest is filed,the board will not approve the application unless it finds that the protest is"arbitrary,capricious and unreasonable". Instead,in accordance with AS 04.11.510(b),the board will notify the applicant that the application is denied for reasons stated in the protest. The applicant is entitled to an informal conference with either the director or the board and,if not satisfied by the informal conference,is entitled to a formal hearing in accordance with AS 44.62.330-44.62-630. IF THE APPLICANT REQUESTS A HEARING,THE LOCAL GOVERNING BODY MUST ASSIST IN OR UNDERTAKE THE DEFENSE OF ITS PROTEST. Under AS 04.11.420(a), the board may not issue a license or permit for premises in a municipality where a zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages,unless a variance of the regulation or ordinance has been approved. Under AS 04.11.420(b)municipalities must inform the board of zoning regulations or ordinances which prohibit the sale or consumption of alcoholic beverages. If a municipal zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages at the proposed premises and no variance of the regulation or ordinance has been approved,please notify us and provide a certified copy of the regulation or ordinance if you have not previously done so. Protest under AS 04.11.480 and the prohibition of sale or consumption of alcoholic beverages as required by zoning regulation or ordinance under AS 04.11.420(a)are two separate and distinct subjects. Please bear that in mind in responding to this notice. AS 04.21.010(d),if applicable,requires the municipality to provide written notice to the appropriate community council(s). If you wish to protest the application referenced above,please do so in the prescribed manner and within the prescribed time. Please show proof of service upon the applicant. For additional information please refer to 3 AAC 304.145,Local Governing Body Protest. Note: Applications applied for under AS 04.11.4000,3 AAC 304.335(a)(3), AS 04.11.090(e), and 3 AAC 304.660(e)must be approved by the governing body. Sincerely, Jane Sawyer Business Registration Examiner 907-269-0359 Jane.sawyer@,alaska.gov 157 Alcoholic Beverage Control Board New Liquor License (907)269-0350 2400 Viking Drive Fax:(907)334-2285 Anchorage,AK 99501 http:/lcommerce.alaska.gov/dnn/abc/Home.aspx License is: Full Year OR 0 Seasonal List Dates of Operation: SECTION A-LICENSE INFORMATION FEES Office Use: License Type: Statute Reference License Year: - J t U ru 4+ �.(�1 ty P I kc Sec.04.11. License Fppe : $ 6D V J.` pp Office Use: 4q 't,)LA0 1 L CO VI ✓ 1 Crl. t e- Filing Fee: $100.00 License#: t39 t C Rest.Desig.Pemtit . Fee: $.S° Local Governing Body:(City,Borough or Unorganized) Community Council Name(s)&Mailing Address: C14%1 ()- Jew"lr^ Fingerprint:a49. 5 $on) (849.75 per/persau) Name of Applicant TOTAL t�_` I / (Corp/LLC/LP/LLP/Individual/Parinership): Doing Business As(Business Name): Business Telephone Number. Die Sect &cl n LL(-- -�-I^ C e 9U?-ZZtt —6(:)Z3 t'1, Sec, Beg e\ Fax N,,��gg!!ber.'O 1 ZZ 11 Mailing Address: Street Address or Location of Premises: Email Address: P° x 2S-?3 22S / vrj+-h iV e. &egb,,a�w�Ct e. City,State.Zip: .SZl /Cf r V Ak- �fq 44' e, . (A44,, t ..(. 0W1 &W ((() I rK 9�, �i I SECTION B-PREMISES TO BE LICENSED yYi Distance to closest school Dis a measured under: 0 Premises is GREATER than 50 miles from the boundaries of an C grounds: .-1 AS 04.11.410 OR incorporated city,borough,or unified municipality. + 144 i ❑Local ordinance No. ❑ Premises is LESS than 50 miles from the boundaries of an r incorporated city,borough,or unified municipality. li Distance to closest church: D'tance measured under: Not applicable lb In� Distance 04.11.410 OR O, a 1 YV l / ❑Local ordinance No. ❑ Plans submitted to Fire Marshall(required for new&proposed Premises to be licensed is: buildings) ❑Proposed building *Diagram of premises attached 151.Existing facility ❑New building New Application Page 1 of 3 rev 1/26•,5 158 a Control Board New Liquor License Alcoholic Beverage (907)269-0350 2400 Viking Drive Fax:(907)334-2285 Anchorage,AK 99501 http://commerce.alaskagov/dnn/abc/Homc.aspx SECTION C—LICENSEE INFORMATION I. Does any individual,corporate officer,director,limited liability organization member,manager or partner named in this application have any direct or indirect interest in any other alcoholic beverage business licensed in Alaska or any other state? ❑ Yes' No If Yes,complete the following. Attach additional sheets if necessary. Name Name of Business Type of License Business Street Address State 2. Has any individual,corporate officer,director,limited liability organization member,manager or partner named in this application been convicted of a felony,a violation of AS 04,or been convicted as a licensee or manager of licensed premises in another state of the liquor laws of that state? ❑ Yes V No If Yes,attach written explanation. SECTION D—OWNERSHIP INFORMATION-CORPORATION Corporations,LLCs,LLPs and LPs must be registered with the Dept.of Community and Economic Development. Name of Entity(Corporation/LLC/LLP/LP)(or N/A if an Individual ownership) Telephone Number Fax Number l+ h e Sc, bectil LLL r State.7 - Z -(6(2.3 8°s yip Co le�gil Add City w� Zip Codollyp, Name,Mailing Address and Telephone Number of Registered Agent: yo7i.2. T/ r Date of Incorporation OR State of Incorporation. MQ 1_ �I_^t 1 nv Z�' qtC I /, J.4 Certification with[)CEO: n 4c Is the Entity in"Good Standing"with the Alaska Division of Corporations?rations?(/ $_Yeses ate❑No f T If no,attach written explanation. Your entity must be in compliance with Title 10 of the Alaska Statutes to be a valid liquor licensee. Entity Members(Must include President,Secretary,Treasurer,Vice-President,Manager and Shareholdcr/Member with at least 10%) Name Title % Home Address&Telephone Number Work Telephone Date of Birth Number u -fk.e,`,✓ gasi is k- ()tyke!' too ? I �S 61,4-4^ 10 NOTE:If you need additional space,please attach a separate sheet. New Application Page 2 of 3 r, I 1l14 159 Alcoholic Beverage Control Board New Liquor License 550 West 7m Ave.Suite 1600 (907)269-0350 Anchorage,AK 99501 Fax:(907)3342285 http://commerce.alaska.gov/dnn/abc/Home.aspx SECTION E—OWNERSHIP INFORMATION—SOLE PROPRIETORSHIP(INDIVIDUAL OWNER&SPOUSE) Individual Licensees/AfEiliates(The ABC Board defines an"Affiliate"as the spouse or significant other of a licensee. Each Affiliate must be listed.) Name:tAcc1'IGK2_tc, lie` 'l.o c 1_ Applic t-E Name: Applicant ❑ Address:15„ ZS 7 3 t�; .�J /0(-- Affiliate ❑ Address: Affiliate ❑ Home Phone: (ZS' Date of Birth: , Home Phone: Date of Birth: y,7 -�2 Z -,l Work Phone: Work Phone: Name: Applicant ❑ Name: Applicant ❑ Address: Affiliate ❑ Address: Affiliate ❑ Date of Birth: Date of Birth: Home Phone: Home Phone: Work Phone: Work Phone: Declaration • I declare under penalty of perjury that I have examined this application,including the accompanying schedules and statements,and to the best of my knowledge and belief it is true,correct and complete,and this application is not in violation of any security interest or other contracted obligations. • I hereby certify that there have been no changes in officers or stockholders that have not been reported to the Alcoholic Beverage Control Board. The undersigned certifies on behalf of the organized entity,it is understood that a misrepresentation of fact is cause for rejection of this application or revocation of any license issued. • I further certify that I have read and am familiar with Title 4 of the Alaska statutes and its regulations,and that in accordance with AS 04.1 1.450, no person other than the licensee(s)has any direct or indirect financial interest in the licensed business. • 1 agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. • Signatu f Licensee(s) Signature of Licensees) Signatu Signature Signs re Signature e&/T t (Please ) Name&Title(Please Print) Name (/./ 14e. c.k ©Ldt Subscribed and sworn to before me this Subscribed and sworn to before me this da of 4 It_ . ..- . da of Notary Public in and for e State of A Notary Public in and for the State of My commission expires:-(1„. 1^_- My commission expires: LAovuzir\ .., \ pUB C 41F. . //!IIIIII New Application Page 3 of 3 revs/11/15 160 • STATE OF ALASKA ALCOHOLIC BEVERAGE CONTROL BOARD APPLICATION FOR RESTAURANT DESIGNATION PERMIT AS 04.16.049&3 AAC 304.715-794 The granting of this permit allows access of persons under 21 years of age to designated licensed premises for purposes of dining,and persons between the ages of 16-20 for employment. If for employment,please indicate in detail what the employment duties will be in question#3. License Number: "��v` Type: Re 94ttv Van Feq t45 Pk f PL if 1'G G•ac/e11iP14 a This application is for designation of premises where: (Please check the appropriate items below) 1. _A_ Bona fide restaurant pursuant to 3 AAC 304.305&3 AAC 304.715-794. 2. _`L Persons 16-20 years of age may dine unaccompanied. 3. Persons under 16 may dine accompanied by a person 21 years of age or older. 4. _y„___ Persons between 16-20//years of age may be employed. '(See note below) Licensee's Name: P 4 'k rShock Name of Business: -r-Lt. Sect l3ea V7 Business Address: 2.-'..S +.2,L it 41 ItVQ City: szikkird 1. Hours of operation 3 IVA to 7 P"' . Telephone Number $G 7 4ZZ 7/ZS-- 2. Have police been called to your premises for any reason? [ ]Yes 4.1110 (If you answered yes,please explain below). 3. *Duties of employment: AI`J it 1.4..kS 6 rl t3 . S 4. Are video games available to the public on your premises? [ ]Yes ,].(No 5. Do you provide live entertainment,such as live music,pool tables.karaoke,dancing,sports or pin-ball? [ ]Yes ypao 6. How is food served?Jertable Service [ ]Buffett Service J, Counter Service [ ]Other , 7. Is an owner,manager or supervisor 21 years of age or older always present during business hours? ,jolies [ ]No ***A MENU AND DETAILED PREMISES DIAGRAM MUST ACCOMPANY THIS APPLICATION*** *Employees 16 and 17 years of age must have a valid work permit and a letter maintained in your files from a parent or guardian authorizing employment at your establishment. **PIe e attach a itional sheets of paper if more space is needed to describe food service,entertainment,etc. Lic see Signature Local Governing Body Approval Subscribed and sworn to before me this 1 ( day of Mh- 9'15 Date o ~ Public in nd fo Alaska My Corn • , � 4 M. • expires; 1 �4,-.3-54 lt']` Director,ABC Board NeR.:4rARTI t: f Date gi 4tut,‘PUBLIC/4 ‘48,44 Mi nniV' 161 ST.111.01 1.1 ..,!.,;; ; .1i.( (1.0 )! 13F.N.FR \t;:..:0 V:'.., IT fiii\jzi) Licensed Preivisi,..Oiagvaiii !\■illl'`,.:14)-s-S: ,..i1,,, all;:n.,,r:ipsec.,.._;1,1,:,.itir.:1:id Ai ti\a:-,:-. ...,::;' ,I, 1:;,!.•,..1,00:11-... :!.,;•-:-. ,.,lmtcr.14. Nil...itloiii,.Ni.':;..'N.,.I.: (....C1 #._ i r t).,: , ":3ec40, (---- e- 2Z 4 711! 4 lic .......4. . t 1,,,,,,t,„ale 1,-,"i atter e.iliropriaLt: Soto...h11i Or :,:lil'..'iC11::_!1:1 :, •, `..Id: , '. ;PLC,. st. ALF. 1.: .4%.3 ' SQ. 4 IL S(...!.5 1.C.13: 1 .A101 and v.kith 1)1 1:•.111IMN III lid: Outline the area to be designated for sale,service,storage,and consumption of alcoholic beverages in red. Xi ',:(31 USI.ili.,1 f, :\N OR t'E\Cif.0\ Fins Di 1R.\\ . -T4. _ __,. ___.____. ' ' ! ,, _..1. . • . , . f I I , ' ---i- , • , 1 , . F----1---- ----4--- --4 -- ----1----- -..1--- 1---; ---i- -- !- , . i- i-----i- i i - : - ',, • ! 1, 1 ! i 1 • 1 1 1 , i • 1, -i-- .-4,- --t.- 4 I. 7 .,--'• - -.---•fimia•---t-'i-tc•'1"- ! 1 ... ___11-4._,/.........k.1 t-I.titi... _Ts..r. 11,;.' ...t. 4 , • : , 7,t : ' . 1 • I . 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Vu2 tk ; . , . . -..,, ..1 J.,- 1 ...,; .. -..--,/.. : ir.iAi...i,....‹..... _ :1 ! • 1 fl• i ' i ; • , , " I-----1---2,-- •i--- --4-- i....-, ,_ 1 . • . . 1 1 : ! i i ! t 1 I • : -. • ; , 1 • i i ; I i : I i, '! i ' . , i , : i 1 ..".1 : l'^ I .--t- .2, -+---1.-^` 1- ■ ! ; .; : :' . -.---. 1 . ' . ' , i ' 1 i 1 : i i ■ . ; : , ; I 1 , 1 i • ! ■ 1 • 1 1 1 1 . I I j__. 1 i . ■ I I i ,.. , , I t- ----,- 1 41 ; Ii II ; I I. !! 1 : . . Revised 6i16/06 162 2 ncaff einated 225 FOURTH AVE,SEWARD,�AKK 99664 �f Hot Chocolate 2.00 250 3.00 3.50 ir �`� 1.50 2.00 250 3.00 Tii Steamer 11 �VIVI-1,\' Teas ( -' \. Chai Latte 3.00 3.50 � n 0 4.00 450 1 1 - -_V Dirty Chai Latte 350 4.00 4.50 5.00 ' i Loose-leaf Tea 1.75 2.75 3.00 325 ��� CAFE""11‘ A\\ ... 14 ¶rozeii Drinks Frappuccino-style blended ice drinks (907)224-6623 WWW.SEABEANCAEE.COM 3.50 4.00 4.50 5.00 Available in all °specialties" flavors (us/rontp,) BREAKFAST AND LUNCH MENU INSIDEI [xtras Gluten-free, vegan and vegetarian options available We proudly serve organic.fair-trade espresso and coffee that has been roasted Flavor syrup 50 Soy milk .75 especially for us in Girdivood.AK Trace it to the source!Ask us how_ Extra shot 1.00 Coconut milk 1.00 drinks prea 8 o 12 oz 16 oz 20 oz Smoothies 16 oz $6.00 Cof fee 150 2.00 2.50 3.00 MERMAID- Strawberry, banana, Break yogurt EJ orange juice Cafe au lait 2.00 2.50 3.00 3.50 MANGO- Mango, strawberry, greek yogurt, te orange juice Espresso dbl- L75 quad- 2.75 STARFISH- Raspberry, strawberry, mango, banana P3 OJ Machiatto dbl. 2.00 quad- 300 TRITON- Blueberry, blackberry,raspberry,banana, coconut milk Americana 125 2.25 2.75 325 Add-ins: Protein powder, flaxseed, agave 1.00 Sludge 2.00 2.75 325 425 Cappuccino 3.00 3.50 4.00 4.50 tt Bottled Drinks Lae 3.00 3.50 4.00 450 Mocha 3.50 4.00 4.50 5.00 Water $2 Izze $2.50 Breve 3.75 4.25 4.75 525 Milk- 12 oz cup $3 Pellegrino $2.50 Mocha Breve 4.00 4.50 5.00 550 Specialties 3.75 4.25 4.75 525 Minty Madam Pappartnint&chocolate lane Jolly Roger Caramel lb hazelnut latte THIRD AVE(SEWARD HIGHWAY) Nuts to You Macadamia nut. hazelnut&coconut latte 1' The Siren Raspberry lrt vanilla latte S1 N Pieces of Eight Coconut.kutterrum eej vanilla latte `the Sea Bean Q Black Jack Black cherry mocha 0 225 Num Avt Moonlight Almond e9 coconut white chocolate mocha s SEWARD.AK99664 FOURTH AVE Queen Anne s Revenge English toffee&huttovvum mocha Blackbeard Chocolate.vanilla fg caramel mocha Pr;cet subiect to ckange.6-19-14 163 bakery paninis `+ r Served on delicious locally made herbed forsccu Muffin Delieioua and satisfying.Selection varies 3.00 Flaky.buttery goodness!(add butter-.30) `2.00 The Mayflower Turkey.bacon.cream cheese,house-made 10.95 Croissant cranberry sauce,black pepper,lettuce. Cookies Fresh baked.Selection varies 2.00 drizzled with honey Sunshine Sandwich Sometimes ample is best Ham.cheddar. 10.95 *Cookie Tarts Crispy ocious,soft and chewy inside.The 3.50 and macaroni est Cheese most delicious Cookie we've ever tasted.You of Happiness won't believe it's gluten-free and vegan! BLT A souped-up version of the elastic bacon. 10.95 *Marathon Bar Energy bar for the trails.Sunbutter,honey. 3.50 lettuce.tomato,avocado.red onion. {lsxseeds.pecans,walnuts.pumpkin seeds and and cheddar brown rice cereal.Gluten free! Pesto Turkey Turkey,bacon provolone red onion 10.95 *Cupcakes Regular,gluten-free and vegan options available. 3.50 and pe.to Daily cupcake specials-check our facebook page Turkey.bacon ham,avocado,lettuce and 10.95 for whets new! Bleu Cheese bleu cheese dressing Bear Claw Croissant-like pastry wrapped around cream 5.00 Italian Ham,salami.pepperoni,provolone red onion. 10.95 cheese and fruit filling,and drizzled with icing tomato,lettuce,olive oil and oregano.Served Cinnamon Roll Huge.warm cinnamon roll drenched in icing 5.00 with a side of marinara sauce for dipping Black Bean Burger Black bean burger,provolone,red onion. 11.95 *Gluten free tr vegan avocado,roasted red pepper.lettuce.and Iiummus 8reakf a81 Veggie Avocedo,red onion.tomato,roasted red 10.95 pepper,cucumber,lettuce and hummus Breakfast Partin; Bacon or ham,eggs.and cheddar on foeaccia. 10.95 Nutella Strawberries,banana slices and nutells on 6.95 Served with a side of sales. lightly grilled whole-grain bread Breakfast Wrap Bacon or lam.eggs.cheddar Sod salsa piled 8.95 All sandwiches are available on Gluten-Free bread- ndcl ,$2.50 into•grilled wrap Nutella Sandwich Strawberries,banana slices and nutelle os 6.95 build dour Own Sandwich! eek Your Toppings from lightly grilled whole-grain bread the Options Below-$10.95 Hot Oatmeal Organic oats served with brown sugar 55 raisins 3.00 Bread (pick one) Sourdough,two-toned rye.foeaccia.tortilla wrap bagel,or croissant Umpqua Oatmeal For oatmeal lovers on the run. 4.00 Meat/Meat Sub Ham,turkey,chipotle black bean burger.bacon,egg.or Granola Includes milk or soymilk(coconut milk,add$1) 4.95 smoked salmon(add$150) Yogurt Parfait Granola layered with greek yogurt and topped 6.00 Cheese (pick one) Cheddar,provolone or pepperisck with cinnamon sugar Spreads Hummus,cream cheese.pesto,ranch,blue cheese spread. cranberry sauce,honey,salt-n-pepper,spicy mustard (raD Veies Lettuce.tomato,red onion,banana pepper,cucumber. roasted red popper.avocado(add.75) Bacon or ham,eggs.cheddar and salsa piled 8.95 Other stuff you Extra bacon-$1.00 Breakfast Wrap p p into•galled wrap can add fore Qui Quince Salad $300 Ranch Turkey,cheddar,bacon.red onion,lettuce 8.95 tiny fee! and reach dressing Veggie Tomato,avocado,cucumber,red onion,lettuce. 8.95 and cream cheese Soups .Served with fly selection varies Bowl 9Py1.Zs, 5.50 Soup te Sandwich 13.95 Pa9els P la3i Toasted,served with your choice of cream 3.50 or te ids cheese.butter.jelly or nutella(avail.all day) Organic peanut butter and organic strawberry 4.95 Breakfast Baron or ham.egg.,and cheddar on•bagel of 7.95 Ply preserves on whole-grain sandwich bread your choice(avail.until 11.30 a.m.) Grilled Cheese Tillamook cheddar on panini-grilled whole-grain 5.95 Smoked Salmon Local smoked salmon,tomato,cucumber,red 9.95 sandwich bread onion and cream cheese on bagel of your choice Macaroni ff3 Mae-n-cheese in •cup 495 Veggie Tomato.avocado,cucumber.red onion.and 7.95 Cheese cream cheese on bagel of your choice 164 Providence Health&Services INC DET OPS 1EAL MGD-PROV SEWARD MED CTR Printed On 47I Y/16-62 5:48 PM Detail Statement of Operations(in Thousands) Printed By aallensw Reported as of March 2015 Month-To-Date Year-To-Date Actual Budget %Variance Actual Budget Variance Pr.Year %Variance Gross Service Reven ec 114 138 (17.0) Acute Care-Inpatient 342 412 (17.1) 234 46.2% 556 587 (5.3) Acute Care-Outpatient 1,847 1,715 7.7% 1,725 7.1% 80 74 8.4% Primary Care 210 211 (0.4) 257 (18.4) 1,216 1,479 (17.8) Long-term Care 3,651 4,293 (15.0) 3,349 9.0% 1,967 2,278 (13.6) Total Gross Service Revenues 6,049 6,631 (8.8) 5,565 8.7% Revenue Deduction 135 42 222.2% Charity Care 343 124 176.3% 86 298.7% 409 464 (11.9) Medicare Medicaid 1,155 1,345 (14.1) 1,036 11.5% 18 17 4.2% Negotiated Contracts (6) 51 (112.3) 63 (109.8) 142 73 94.7% Other Deduction Expense 216 215 0.1% 180 19.7% 704 596 18.1% Revenue Deductions 1,708 1,735 (1.6) 1,366 25.0% (164) 80 (305.7) Bad Debt Deduction 8 239 (96.5) 473 (98.2) 1,426 1,602 (11.0) Net Service Revenue 4,333 4,657 (6.9) 3,726 16.3% (18) 7 (358.0) Other Operating Revenue 98 21 376.3% 44 122.6% en U 1,408 1,609 (12.4) Total Net Operating Revenues 4,431 4,677 (5.3) 3,770 17.5% Fxoenses from Operations; Other Exoenses from Operations; 768 757 1.4% Salaries and Wages 2,218 2,200 0.8% 2,430 (8.7) 236 216 9.4% Employee Benefits 728 643 13.1% 670 8.6% 3 8 (56.2) Professional Fees Expense 21 23 (6.3) 61 (64.7) 106 88 19.6% Supplies 253 262 (3.6) 233 8.6% 204 198 3.2% Purchased Services Expense 576 594 (3.1) 629 (8.4) 3 3 (0.1) Depreciation Expense 9 9 (0.1) 4 104.5% - 2 (100.0) Interest and Amortization - 5 (100.0) 4 (100.0) 0 - - Taxes and Licenses 0 11 (99.5) 0 (88.4) 84 65 29.8% Other Expenses 192 197 (2.3) 244 (21.2) 1,404 1,336 5.1% Other Expenses from Operations 3,997 3,944 1.3% 4,275 (6.5) 1,404 1,336 5.1% Total Operating Expenses 3,997 3,944 1.3% 4,275 (6.5) 4 272 (98.6) Excess of Rev Over Exp from OPS 434 733 (40.8) (505) (185.9) 0 0 (4.2) Non-Operating Gain(Loss) 0 0 48.2% 0 17.3% 4 272 (98.6) Excess of Rev Over Exp 434 733 (40.8) (505) (185.9) Other Activity-Unrestricted (710) (663) 7.1% Increase(Decrease)in UR Net Assets (276 (1,1681 (764) i Providence Health&Services BAL_Balance Sheet_EAL MGD-PROV SEWARD MED CTR 110 Balance Sheet(in Thousands) Printed On 4/17/15 @ 5:48 PM Reported as of March 2015 Printed By aallensw March December March December 2015 2014 2015 2014 Actual Pr.Year Actual Pr.Year ASSETS LIABILITIES&NET ASSETS Current Assets; Current Liabilities; Cash and Cash Equivalents 2,023 409 Accounts Payable 181 190 Mgmt Designated Cash&Cash Equiv. - - Accrued Compensation 823 990 Accounts Receivable 4,610 7,272 Payable to Contractual Agencies 0 0 Less:Contractual Allowance (360) (337) Deferred Revenue/Uneamed Premiums 1,585 1,892 Less:Allowance for Doubtful Accounts (980) (1,017) Other Current Liabilities 4,071 5,454 Other Receivables (1,102) 228 Total Current Liabilities 6,661 8,527 Total Current Assets 4,192 6,555 Assets Whose Use is Limited; Long-Term Debt: o, Funds Held for Long Term Purposes 231 - Assets Whose Use Is Limited 231 - Total Other LT Liabilities 354 112 Property.Plant&Eauioment; Property Plant Equipment Gross 332 332 Total Liabilities 7,014 8,638 Accumulated Depreciation (205) (196) Property Plant Equipment Net 127 136 Net Assets; Other Assets; Unrestricted (2,114) (1,839) Other Assets 360 118 Temporarily Restricted 9 9 Total Other LT Assets 360 118 Total Net Assets (2,105) (1,829) Total Assets 4,909 6,809 Total Liabilities and Net Assets 4 909 6 809 Providence Health&Services BAL STMT CHG IN MGD-PROV SEWARD MED CTR NET_ASSET_EAL Statement of Changes in Net Assets(in Thousands) Actual Printed On 4/17/15 @ 5:48 PM Reported as of March 2015 Printed By aallensw 9 of 11 UNRESTRICTED FUNDS Current Year to Date Prior Year to Date Beginning of Year (1,839) (1,384) Excess of Revenues Over Expenses 434 (505) Restricted Contributions&Grants _ - Net Assets Released from Rest. _ - Interdivision Transfers (710) (663) Net Assets(Liabilities)Assumed _ - Unrealized Gains(Losses)on Invest. _ - Extraordinary Items&Other _ - Total Change in Net Assets (276) (1,168) Ending Balance (2,114) (2,552) TEMPORARILY RESTRICTED FUNDS Current Year to Date Prior Year to Date Beginning of Year 9 8 Investment and Other Income - - Restricted Contributions&Grants 0 (2) Net Assets Released from Rest. Interdivision Transfers Net Assets(Liabilities)Assumed - - Unrealized Gains(Losses)on Invest. _ - Extraordinary Items&Other - - Total Change in Net Assets 0 (2) Ending Balance 9 6 Providence Health&Services CF_CASHFLOW_STMT_EAL MGD-PROV SEWARD MED CTR Actual Statement of Cash Flows(in Thousands) Printed On 4/17/15 @ 5:48 PM Reported as of March 2015 March March March March 2015 2014 2015 2014 Operating Activities: Financing Activities: Change in Net Assets (276) (1,170) Proceeds from Rest Contrib and Invest Inc _ - Adjustments to Reconcile Net Cash Provided Debt Borrowings by Operating Activities - - - - Depreciation 9 4 Debt Payments Amortization(CF_AMORT) - Increase Decrease in Def Financing Costs Provision for Bad Debts 8 473 Changes in securities lending payable - - Interdivision Transfers and Other Loss Gain on Sale of Cap Assets (7101 (663) Equity Income from Joint Ventures Net Cash Provided by Used in Fin Act (710) (663) Restricted Contrib/Investment Income Loss - - Increase(Decrease)in Cash&Cash Equiv. 1,614 (191) Net Real/Unreal Gains Losses on Invest 0 0 Capital Contributions to Joint Ventures - - Distributions from Joint Ventures - - Cash and Cash Equiv-Beginning of Period 409 61 Extraordinary Items and Other Cash and Cash Equiv-End of Period 2,023 (130) o, Net Assets Cont/Assumed and Other 710 663 m Changes in Certain Current Assets/Liab 2,103 311 Increase Decrease in Other Liabilities 242 (4) Supplemental Disclosure: Net Cash Provided by Used in Op Act 2,797 277 Cash Paid for Interest,Net of Capital 4 Investing Activities: Capitalized Lease Obligations - Property,plant and equipment additions - - Proceeds on the disposal of PPE _ - Purchases of Investments _ - Proceeds on the Sale of Investments (231) 26 Change in securities lending collateral - - FM Increase Decrease in Funds Held by Trustee _ - FM Increase Decrease in Other Long-Term Assets (242) 6 Net Assets Liab Assumed and Other _ - Net Cash Provided by Used in Inv Act (473) 32 May 2015 May2015 June2015 SuMo SuMo TuWe Th Fr Sa TuWe Th Fr Sa 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 Monday I Tuesday Wednesday Thursday Friday Apr 27 28 29 30 May 1 g N N Q Q 4 5 6 7 8 7:00pm P81Z Mtg 12:00pm PACAB Mtg 12:00pm Seward Recrea v T A 3 11 12 13 14 15 7:00pm CC Mtg 12:00pm CC WS 6:30pm HP Meeting in .i m 2 18 19 20 21 22 6:30pm PBtZ WS N (N co •i m 25 26 127 28 129 Memorial Day Obsery , 7:00pm CC Mtg rn N in 10 L Nanci Richey 1 5/20/2015 12:58 PM 169 June 2015 JuneeTh July 2015 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 4 7 8 9 10 11 12 13 5 6 7 8 9 10 11 14 15 16 17 18 19 20 12 13 14 15 16 17 18 21 22 23 24 25 26 27 19 20 21 22 23 24 25 28 29 30 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Jun 1 2 3 4 5 6:00pm P&Z WS;Floor 12:00pm PACAB Mtg 7:00pm P&Z Mtg U, 10 11 12 9 7:00pm CC Mtg N 1-1 CO C 7 15 16 17 18 19 6:00pm P&Z WS 12:00pm PACAB Work S 6:30pm HP Mtg C, U, c 2 23 24 25 26 7:00pm CC Mtg 0 N N N C 7 30 Jul 1 2 3 ( PCWSandC Nanci Richey 1 5/20/2015 1:09 PM 170 July 2015 July 2015 August 2015 SuMo SuMo TuWe Th Fr Sa TuWe Th Fr Sa 1 2 3 4 1 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 23 24 25 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Jun 29 30 Jul 1 2 12:00pm PACAB Mtg �+LCAS�� M C21 'N 01 \ ■ C 6 7 8 9 10 7:00pm P&Z Mtg;CAI\ 0 14 115 16 17 7:00pm CC Mtg 12:00pm PACAB Work S 6:30pm HP Mtg N M ti 20 21 ,22 23 24 6:00pm P&Z Mtg ry 0 ry 28 29 30 31 7:00pm CC Mtg M N N Nanci Richey 1 5/20/2015 12:58 PM 171