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HomeMy WebLinkAbout06082015 City Council Packet Seward City Council Agenda Packet Happy Father' s Day dibgli° June 8, 2015 city Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska 0C SE 12E021 CITY COUNCIL MEETING AGENDA ; All-AmericacftY , to II® {Please silence all cellular phones during the meeting} P June 8, 2015 7:00 p.m. Council Chambers Jean Bardarson 1. CALL TO ORDER Mayor 2. PLEDGE OF ALLEGIANCE Tenn 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—None Council Member B. Borough Assembly Report Tenn Expires 2015 C. City Manager's Report Pg. 3 D. City Attorney's Report Dale Butts E. Other Reports and Presentations Council Member Term Expires 2016 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 June 8, 2015 Page 1 7. PUBLIC HEARINGS A. Resolutions Requiring A Public Hearing 1. Resolution 2015-052, Authorizing The City Manager To Enter Into A Lease Amendment With Carl I. And Kim Hughes To Extend The Term Of Their Lease By Thirteen Yeats,To Add Two Thirty-Three Years Options,And To Add Their Son John C.Hughes.......... .Pg 7 8. UNFINISHED BUSINESS—None 9. NEW BUSINESS A. Resolutions 1. Resolution 2015-053, Accepting The 2015 Volunteer Fire Assistance Grant(VFA) In The Amount Of $6,170.10 And Authorizing The 10% Matching Funds Of $685.50 And Appropriating Funds Pg. 49 2. Resolution 2015-054,Authorizing Use Of The Capital Credit Refund From Chugach Electric In The Amount Of$211,659 To Extent Primary Electrical Service And Add A Fourth Recloser At The Spring Creek Substation, And Appropriating Funds Pg.57 *3. Resolution 2015-055,Setting The Mill Rate(Unchanged)For 2015,At 3.12 Mills.....Pg 62 *4. Resolution 2015-056, Supporting The Qutekcak Native Tribe's Federal Recognition Efforts .. Pg. 65 B. Other New Business Items *1. Approval of the April 27, 2015 and the May 11, 2015 Regular City Council Meeting Minutes . Pg. 67 *2. Approve the Public Convenience/Eating Place Liquor License application for The Cookery Pg. 83 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. Proclamation recognizing National Hospital Week, May 10-16, 2015... Pg. 96 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda June 8, 2015 Page 2 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 June 8, 2015 The following purchase orders for between $10,000 and $50,000 have been approved by the City Manager since the last council meeting: 5/29 Electric Dept. $35,619.00 HD Supply Power Solutions Transformers A. Administration: • Consult with City Attorney • Attended Norlense seminar at Alaska SeaLife Center • Attended INTSOK Arctic Offshore Operations Conference • Attended a meeting regarding Structural Modifications to Syncro-lift • Meeting with Tom Tougas regarding signage on Port Ave. • Various meetings at Legislative offices in Anchorage • Held multiple interviews for Harbormaster B. Finance • Finance department still finalizing year-end audit issues; hoping to be ready for the June 22"d work session; will notify Council as soon as possible if unable to meet that deadline. The biggest challenges are associated with learning new report writing and data extraction programs necessary to provide auditors data in format they have requested. • Staff will be shifting focus to building reports needed for upcoming Biennial Budget process; process will begin with departments in July. • First quarter sales tax figures from Kenai Peninsula Borough show Seward's taxable sales down 3.54% from prior year. This compares favorably to Homer, Soldotna, and the Borough, which had even higher reductions in taxable sales year-over-year. • Staff have been working with Alaska Waste on collections issues and have had fairly good response from customers. No customers have had electric service shut off due to non-payment of garbage. • Continuing work with State on transfer of prison property, maintaining the City's right of reversionary interest. C. Harbor: • The City Manager and the acting Harbormaster Norm Regis attended Norlense oil spill recovery seminar at the AK Sea Life Center for a demonstration of its new inflatable boom. • The Seward Police Department, Seward Prevention Coalition and SeaView Community Centers' Domestic Violence/Sexual Assault Program put up a Before I Die wall in front of the harbormasters office. This has been getting a lot of great responses from the public. Come check it out. • AT&T Alascom has requested to extend their easement lease for the fiber optic cable for an additional five years. • Vigor had a meeting with City Administration about upgrades to the syncro-lift on 05/28/2015. D. Public Works Streets: • Painting crosswalks • Cleaning streets • Brushing • Prioritizing Sidewalk Repairs Shop: • Maintenance of vehicles • Tire change over complete Water/Sewer: • Sludge removal oversight • Tank site prep • Well drilling oversight • Prison water meter(scheduled to be replaced/moved inside prison) • ADEC Municipal Matching Grant Applications are due July 15, 2015 (Maple Street Sewer& Water, Sewer can use sewer loan as the 30%match) • ADEC is offering a$40,000 to $80,000 forgiveness if we utilize our Sewer loan for the Maple Street Sewer project Administration: • Met with prison staff about Pre-Screening sewerage prior to City system • Closing out FEMA projects....Jap Creek/Dimond Blvd. culvert may get extension? • Pedestrian Bridge at Waterfall repair complete • Re-permitting of SMIC Lagoon • Re-Permitting Lowell Point Lagoon • Consumer Confidence Report almost complete • Informational "sewer" flier ready to be mailed • Documenting progress on projects...paperwork....quarterly reports • Invitation to Bid for ROW Certification for Fed. Earmark $$$ E. ELECTRIC • Number of outages/trouble calls since the last council meeting: 3 • Number of users affected: 2 • Cause(s) of outage(s): Open cutout, customer problems • Location(s) of outage(s): Camelot • Generated for: n/a Other items of interest: • On Tuesday June 2", Chugach Electric tested their Cooper Lake Hydro and islanded Seward. We ran four of our generators for 2 hrs. During Chugach's testing,they ran into frequency problems and asked us to continue to run one of our generators to provide frequency stabilization. Chugach has agreed to pay the cost of running the generator. • HotWire Electric has finished construction in Camelot. Our crew will continue to finish their portion of the project. • On June 11th,there will be a power outage from 9:30 a.m. — 11:30 a.m. Two customers will be moving building from the Air force Rec Camp to out of town. The affected areas will be North of Forest Acres to Grouse Lake Rd: to include Mile 0-2.5 of Nash Rd. F. SPRD Sports & Rec • Softball leagues began Sunday; Competitive League began May 31st with 5 teams and Rec League started on June 2nd with 7 teams. Our college intern, Gabe Stovall is doing well with his responsibilities; we are pleased to have his help. The one-mile, Bear's Den B&B Bear Bell Run is this (last)Friday. 25 kids are pre-registered at press time. • Seward Youth Soccer League Soccer Play Day at the Elementary Field Mon, June 15 at 2 pm. On-line Registration is now available for the British Soccer Camp, to be held June 22 to 26. Stylin' Stitches IIA Youth Soccer League will be held on Mon& Wed nights from July 6 to Aug 12. Registration forms are now available at www.cityofseward.us under Sports and Recreation Department. We are currently seeking volunteer soccer coaches. • Staff is working on the Subway Tri-Harder-Thon, online registration now open go to www.runsignup.com 5 mile Kayak, 6 mile trail run and 15 mile bike Sat, July 25th Teen & Youth Center/Teen Rec Room • TYC day camps are off and running with the 1st week completed serving 23 campers each day. The second week is at 30+campers each day.Next (this) week we will be heading to Anchorage for a Zoo Trip during Animal Planet week. • Staff has taken Verbal Judo, and are prepared for a fun and adventurous summer program. • Adventure camp begins July 6th for 6—8 graders and Hiking Club begins Monday,June 15th. Park Maintenance& Campgrounds • By tonight's Council meeting, we estimate 500 users will have paid the $5 dump fee. • We are up in RVs and camper nights, compared to last year's statistics. We see 28% increase in camper nights and revenue in May 2015 compared to May 2014. We are still seeking campground attendants. • The adopt-a-park gardens are planted. We continue to seek volunteers to work in the cemetery on short projects,big projects or little projects. Give us a call. Parking • Selling employee, slip holders and vehicle with trailer permits. • Our contractor completed sweeping and spraying the paved parking lots. We continue to freshen up the striping. • Our pay stations system has now completely switched over to Digital Iris, their latest upgrade. .3. 5 d�F. FRIENDS , ,.„JESSE LEE I TOME L: fi,.DY ❑F LEAGF.R is F June 3, 2015 City of Seward ATTN: Ron Long P.O. Box 167 Seward, Alaska 99664 RE: Request for project update Dear Mr. Ron Long, Please accept this letter as an update for the City Council in regards to the status of the Jesse Lee Home. The Friends of the Jesse Lee Home are in the final stages of completing our curriculum model. We also intend to complete the architectural design phase to include construction bid documents by the end of 2015. Unfortunately, we were unable to obtain state funding in 2015 due to the state's budget shortfall. We continue to aggressively seek capital funding to obtain the $7Million gap. Last fall, we were successful to get temporary power at the Jesse Lee Home site to begin our site improvements. This summer, we are developing a scope of work to bid out Hazmat abatement and complete partial utility extensions. Thank you for your time and do not hesitate to call me if you have any additional questions at (907)362-2907 or (907)422-0660. Sincerely, Kirsten K. Vesel Executive Director Friends of the Jesse Lee Home c Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AMENDMENT WITH CARL I. AND KIM HUGHES TO EXTEND THE TERM OF THEIR LEASE BY THIRTEEN YEARS, TO ADD TWO THIRTY-THREE YEARS OPTIONS,AND TO ADD THEIR SON JOHN C. HUGHES WHEREAS, the City is owner of real property described as Lot 7, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS,this parcel was leased to Carl I. Hughes and Kim Hughes in 1997 for a term of twenty years; and WHEREAS, the parties to the lease want to extend the term for an additional thirteen years with two additional thirty-three year options; and WHEREAS, Mr. and Mrs. Hughes also want to add their son John C. Hughes to the lease; and WHEREAS, the request is consistent with the City's Comprehensive Plan and the Strategic 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 Carl I. Hughes and Kim Hughes for the real property described as Lot 7, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska are in the public's interest. Section 2. The City Manager is authorized to execute the lease amendment with the Hughes family in substantially the form as presented at this meeting. Section 3. This resolution shall take effect thirty (30) days from the date and posting of adoption. I CITY OF SEWARD,ALASKA RESOLUTION 2015-052 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of June, 2015. THE CITY OF SEWARD,ALASKA Jean I3ardarson,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 1 Agenda Statement mss Meeting Date: June 8,2015 ` -10 To: City Council P Through: City Manager Jim Hun !W From: Acting Harbormaster Norm Regis Agenda Item: Carl I. Hughes and Kim Hughes Thirteen Year Lease Term Extension for Lease 97-104 at the Seward Small Boat Harbor; Also adding their son John C. Hughes as an additional Lessee BACKGROUND&JUSTIFICATION: Carl I. Hughes and Kim Hughes have requested to extend their lease by 13 years with two additional 33 year options (see attachment). If approved, a longer lease will afford greater security for financing purposes. The request also includes the addition of their son John C. Hughes as a Lessee. INTENT: To approve a lease amendment between the City of Seward and Carl I. Hughes and Kim Hughes on Lot 7, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan(document source here): Create a thriving port of 1. Seward through harbor improvements,infrastructure expansion, and X implementation of management plans(page 23). Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse x resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other(list): FISCAL NOTE: There is no fiscal impact of the proposed amendment. Approved by Finance Department: ATTORNEY REVIEW: Yes X No Not Applicable 9 RECOMMENDATION: Approve Resolution 2015- OW" authorizing the City Manager to enter into a Lease Amendment with Carl I. and Kim Hughes for Lease 97-104 covering Lot 7, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District,Third Judicial District, State of Alaska Harmon Properties. I Carl &Kim Hughes P.O. Box 241 Seward,AK 99664 City of Seward April 12, 2015 P.O. Box 167 1300 Fourth Ave. Seward,AK 99664 IECIEWEIDI Attn: Mack Funk, Harbormaster&Jim Hunt,City Manager MAY ' — Re: Seward Small Boat Harbor Boardwalk Lease Site No.3. Dear Mack, We submit this request for your consideration. We are requesting that the above referenced lease be amended with the following changes: 1. Extend the original term by an additional 13 years or out to 33 years. 2. Change the right to extend the initial term to read as follows: shall have the right to extend by two(2)additional thirty-three(33)year periods(cumulative extensions not to exceed sixty-six(66)years). 3. We are also requesting that the name of John C. Hughes be added to the names of the lessee's. All other terms and conditions in the original lease will stay the same. Your advice and help will be greatly appreciated. We would like to conclude this in as timely a manner as possible. Do not hesitate to contact me if you need further clarification or you have questions. I can be reached on my cell phone,907-362-3474,almost any time. Or at our business phone number which 907-224-3968. Thank you for your time and consideration. Respectfully, Carl&Kim Hughes ?%,,7 A'j I � LEASE EXTENSION AMENDMENT (RE-97-104) THE CITY OF SEWARD, ALASKA, a home rule municipal corporation, organized and existing under the laws of the State of Alaska, hereinafter referred to as "CITY," whose address is PO Box 167, Seward, Alaska 99664 and CARL I. HUGHES AND KIM HUGHES, P.O. Box 241 Seward, Alaska 99664, hereby agree that the lease agreement 97-104, dated September 24, 1997, as amended, for Lot 7, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska is hereby amended as follows: ADDITIONAL LESSEE John C. Hughes, son,will be an additional lessee and hereby agrees to all terms of the above described lease including all obligations thereto as "Lessee.". ARTICLE 2. LEASE TERM and OPTIONS TO EXTEND The term of this lease shall be extended for thirteen (13) years and shall terminate on September 23, 2030. LESSEE shall have the right to extend the term of this LEASE for TWO additional THIRTY-THREE (33)year periods,provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE;and c) LESSEE shall exercise its options to extend by sending written notice in accordance with the provisions of Article 37 of this LEASE. In all other respects, the Lease is to remain unchanged and in full force between the undersigned parties. LESSOR: LESSEE: CITY OF SEWARD Jim Hunt, City Manager Carl I. ughes Date: 2i/ � 67l F ` 75- Kim Hug I-s C- ' 7 7/1g/I5 ohn C. Hughes Page 1 of 3 l � ATTEST: Johanna Kinney, City Clerk (City Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2015, before me, the undersigned, a Notary Public 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 my hand and notarial seal the day and year first hereinabove written. NOTARY PUBLIC IN AND FOR ALASKA My Commission Expires: Page 2 of 3 STATE OF ALASKA ) ss. VI THIRD JUDICIAL DISTRICT ) � A � 1S THIS IS TO CERTIFY that on this 4, day of Ft t % ��% 20 IV, before me, the undersigned, a Notary Public in and for the State of Alaska, perso 1 ly appeared Carl I. Hughes, Kim Hughes, and John C. Hughes, known to me and to me known to be the individuals named in and who executed the foregoing document for the uses and purposes therein set forth. oraraiii WITNE�Spy i fiil�,notarial seal the da .nd y ar first hereinabove written.•,,, p .;\ Ft. C 'CApy 0: :dal '°(JSO(' Si `t io I 0).5 Now tote•'��? NSARY PUBLIC IN AND F R ASKA e'/i, •-• OF ,;0%`` M =mission Expires: c'-f 2015 "' �� I �tttt�+�� l 4 Page 3 of 3 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and CARL I. HUGHES and KIM HUGHES Effective Date: September 24, 1997 15 TABLE OF CONTENTS ARTICLE 1 — LEASED LAND 1 1.1 Description of Leased Land 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title 1 1.3 Survey of Leased Land 2 1.4 Property Accepted "As-is" 2 1.5 Development of Leased Land 2 1.6 Permits 3 1.7 Platting 3 ARTICLE 2 — LEASE TERM 3 2.1 Term 3 2.2 Interim Right to Possession 4 2.3 Lease Subject to Referendum 4 2.4 Options to Extend 4 ARTICLE 3 — RENTAL RATE 4 3.1 Initial Rental Rate 4 3.2 Rental Adjustments 5 3.3 Procedure for Rental Adjustment 5 3.4 Effect of Late Appraisal by CITY 6 3.5 Appraisal by LESSEE 6 3.6 Effective Date of Adjusted Rental Rate 6 3.7 Late Payment Charge 7 ARTICLE 4 — USE OF LEASED LAND 7 4.1 Use of Leased Land 7 4.2 Obligations of LESSEE 7 4.3 No Preferential Rights to Use Public Facilities 7 4.4 Adequacy of Public Facilities 7 4.5 Tariffs and Other Service Fees 7 4.6 Time for Payment of Utilities and Taxes 8 4.7 Other Uses 8 4.8 Use of Public Docks and Port Facilities 8 ARTICLE 5 — UTILITIES AND RIGHTS OF ACCESS 8 5.1 Utilities 8 5.2 Third-Party Improvements 9 5.3 Easements 9 LEASE AGREEMENT September 24, 1997 City - Hughes Page i W ARTICLE 6 — CONSTRUCTION BY LESSEE 10 6.1 Improvements on Leased Land 10 6.2 City Review of Construction 11 ARTICLE 7 — RETURN OF LEASED LAND/SITE CONDITIONS 11 7.1 Return of Leased Land in Original Condition 11 7.2 Return of Leased Land in Different Condition 11 ARTICLE 8 — FORCE MAJEURE 12 ARTICLE 9 — CITY ACTS OF DEFAULT 12 ARTICLE 10 — REMEDIES FOR CITY'S ACTS OF DEFAULT 12 ARTICLE 11 — LESSEE'S ACTS OF DEFAULT 13 ARTICLE 12 — REMEDIES FOR DEFAULT BY LESSEE 14 ARTICLE 13 — TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 16 13.1 Real Property Improvements 16 13.2 Personal Property 16 ARTICLE 14 — SUBLEASE OR ASSIGNMENT 16 14.1 Assignment of Lease or Subleasing 16 14.2 Sublease Consent 17 14.3 Assignment of Lease for Security 17 14.4 Assignment to Affiliate 18 ARTICLE 15 — LESSEE'S DUTY TO DEFEND/INDEMNIFY 18 ARTICLE 16 — CITY'S DUTY TO DEFEND/INDEMNIFY 18 ARTICLE 17 — INSURANCE 18 17.1 Minimum Insurance Requirements 18 17.2 Subrogation Rights Waived 19 ARTICLE 18 — CONDEMNATION 19 ARTICLE 19 — ARBITRATION 20 19.1 Consent Panel 20 19.2 Formal Arbitration 20 19.3 Arbitration Awards 20 LEASE AGREEMENT September 24, 1997 City - Hughes Page ii ARTICLE 20 — MAINTENANCE AND REPAIRS 20 20.1 Normal Maintenance 20 20.2 Safety Issues 21 20.3 Cost of Repairs 21 ARTICLE 21 — ENVIRONMENTAL CONCERNS 22 21.1 Hazardous Materials 22 21.2 Permits and Reporting 24 ARTICLE 22 — ESTOPPEL CERTIFICATES 25 ARTICLE 23 — CONDITIONS AND COVENANTS 25 ARTICLE 24 — NO WAIVER OF BREACH 25 ARTICLE 25 — TIME OF THE ESSENCE 25 ARTICLE 26 — COMPUTATION OF TIME 25 ARTICLE 27 — SUCCESSORS IN INTEREST 25 ARTICLE 28 — ENTIRE AGREEMENT 26 ARTICLE 29 — GOVERNING LAW 26 ARTICLE 30 — PARTIAL INVALIDITY 26 ARTICLE 31 — RELATIONSHIP OF PARTIES 26 ARTICLE 32 — INTERPRETATION 26 ARTICLE 33 — NUMBER AND GENDER 26 ARTICLE 34 — MANDATORY AND PERMISSIVE 26 ARTICLE 35 — CAPTIONS 27 ARTICLE 36 — AMENDMENT 27 ARTICLE 37 — NOTICES 27 ARTICLE 38 — FIRE PROTECTION 27 LEASE AGREEMENT September 24, 1997 City - Hughes Page iii iS 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 and whose mailing address is PO Box 167, Seward, Alaska 99664, and CARL I. HUGHES and KIM HUGHES (the "LESSEE"), whose mailing address is PO Box 241, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease a parcel of land located along the boardwalk in the Small Boat Harbor, an area of approximately 1,220± square feet in size (the "Leased Land"); and WHEREAS, the City Council of CITY has determined that a 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 present or future environmental regulations or controls with respect to LESSEE's operations on the Leased Land during the lease term. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: ARTICLE 1 — LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: A portion of Block 6, Oceanview Subdivision, Seward Recording District, Third Judicial District, State of Alaska, and more particularly described as Seward Small Boat Harbor Boardwalk Lease Site No. 3, containing 1,220 square feet, more or less. The Leased Land is depicted on the attached Exhibit A, which is incorporated herein by reference. The parties intend that Exhibit A serve as an description of the Leased Land to identify the Leased Land sufficiently for purposes of public hearing and approval of this LEASE by the City Council of CITY, and for purposes of the revocable license granted to LESSEE in Section 2.2. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances of record as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by the CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that: LEASE AGREEMENT September 24, 1997 City - Hughes Page 1 1 g a) LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; b) CITY owns the Leased Land in fee, and, subject to the conditions described in Section 2.2, is fully empowered to enter into this Lease. c) CITY is unaware of any prior conflicting use.of the property that would adversely affect LESSEE's intended use of the subject parcel. L3 Survey of Leased Land. Within ninety (90) days from the date of this LEASE, LESSEE, at its sole cost, will cause the Leased Land to be surveyed and platted by a land surveyor registered in the State of Alaska. A copy of the drawing and description of the Leased Land based upon this survey shall be attached to this LEASE as Exhibit B and shall be incorporated herein by reference. The description of the Leased Land in Exhibit B shall supersede the description in Exhibit A, and shall be considered the correct description of the Leased Land for all purposes under this LEASE. LESSEE shall provide CITY a copy of any and all surveys within ten (10) days of LESSEE's receipt of any and all surveys. CITY shall have the right to comment upon any and all surveys, but the exercise of this right shall not imply any obligation to do so or any obligation to do so in any particular way. If CITY objects to the surveyor's conclusions in the survey, CITY may give written notice to LESSEE of CITY's objection within thirty (30) days of receipt of the survey. CITY shall then engage a second land surveyor registered in the State of Alaska at CITY's expense to make a second survey of the Leased Land. CITY shall provide LESSEE a copy of the second survey within ten (10) days of CITY's receipt of the second survey. Unless CITY and LESSEE agree which survey is acceptable, the acceptable survey shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 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, or agents of CITY, as to the actual physical condition or characteristics thereof, including but not limited to the description of the Leased Land found in Section 1.1 and Exhibit A. 1.5 Development of Leased Land. LESSEE shall construct a building on the Leased Land, subject to the terms and conditions described in Article 6, for the operation of LESSEE's marine charter/tour/retail business. LESSEE understands that construction and operation of its marine-related business is a major consideration for CITY's agreement to lease the Leased Land to LESSEE, and LESSEE agrees to commence the construction of said building by no later than October 1, 1999. LESSEE shall not operate any other business on the Leased Land without the consent of the CITY. LEASE AGREEMENT September 24, 1997 City - Hughes Page 2 20 a) CITY may withhold its consent as to any proposed business or activity which, in CITY's sole discretion, is not desirable or compatible with the CITY's operation of the Small Boat Harbor. b) In accordance with the provisions of Article 14, no assignment or sublease shall be permitted, unless approved in writing by CITY. Any sublease shall be expressly subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY may elect to not approve any proposed assignment or sublease that might result in a business or activity that, in the CITY's sole discretion, is undesirable and/or incompatible with the CITY's Small Boat Harbor. 1.6 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY agrees from time to time, upon request of LESSEE, to execute such documents, petitions, applications and authorizations as may be necessary to obtain from the agency or public body responsible therefor any conditional use permits, zoning and re-zoning, tentative and final tract approval and precise plan approval that is required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. 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) or the Environmental Protection Agency (e.g., Clean Air Act permits). 1.7 Platting. CITY intends to re-plat all the public property on a periodic basis in order to ensure the orderly development of the property and as leases are entered into with various tenants. CITY agrees to include the Leased Land in the next re-plat in accordance with the description prepared by LESSEE under Section 1.3 herein. If LESSEE requests a re-plat of the Leased Land prior to that time, CITY shall assist LESSEE in the preparation and filing of the re-plat, and LESSEE shall reimburse CITY for the CITY's direct costs in assisting in the preparation and filing of the re- plat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or re-platting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by the CITY or other governmental authorities as a condition to record the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. ARTICLE 2 — LEASE TERM 2.1 Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization Resolution No. 97- (the "Resolution"). The Lease Term LEASE AGREEMENT September 24, 1997 City - Hughes Page 3 shall commence with the effective date of the Resolution, and shall run for twenty (20) years, ending September 23, 2017. 2.2 Interim Right to Possession. LESSEE is hereby granted a revocable license to enter upon the Leased Land prior to the expiration of 30 days from the date of passage and posting of the Resolution, subject to the terms of this Section. The granting of a revocable license to LESSEE under this Section is for the convenience of LESSEE only and does not grant any interest in the Leased Land. During the term of this revocable license, LESSEE shall not engage in any storage of materials, clearing, grading, excavation or construction of improvements on the Leased Land. CITY may revoke the license granted by this Section at any time, including without limitation upon the filing with the Clerk of CITY a petition for referendum on the Resolution. 2.3 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the Charter and Code of CITY this LEASE may be voided by referendum. The revocable license granted in Section 2.2 shall not affect or reduce the right of the voters of the City of Seward to reject this LEASE by referendum. LESSEE agrees that if the Resolution is the subject of a referendum petition filed with the Clerk of CITY during the term of the revocable license granted by Section 2.2, LESSEE shall have no rights under this LEASE unless and until the Resolution is approved by the voters of the City of Seward, and LESSEE shall not be entitled to any damages or any other relief against CITY in the event the Resolution is not so approved. 2.4 Options to Extend. LESSEE shall have the right to extend the initial term of this LEASE for two (2) additional five- (5) year periods (cumulative extensions not to exceed ten (10) years), provided that: a) LESSEE exercises any applicable option to extend at least one hundred eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; c) LESSEE shall exercise its options to renew by sending written notice thereof in accordance with the provisions of Article 37 of this LEASE; and d) The City Council of CITY, at the time each option is exercised, approves the extension by resolution or ordinance. ARTICLE 3 — RENTAL RATE 3.1 Initial Rental Rate. Commencing on the effective date of this LEASE through December 31, 1997, the annual rental rate for the Leased Land shall be TWO THOUSAND SEVEN HUNDRED EIGHT DOLLARS ($2,708). Commencing LEASE AGREEMENT September 24, 1997 City - Hughes Page 4 v " January 1, 1998 through June 30, 2000, an adjusted rental rate will be calculated at a rate of TWO DOLLARS AND TWENTY-TWO ($2.22) per square foot of the Leased Land, as determined by the survey/plot plan performed in accordance with Section 1.3. Rent shall be payable quarterly in advance on or before the 20th day of the month following the beginning of each calendar quarter: January 20, April 20, July 20 and October 20. 3.2 Rental Adjustments. As soon as is practical after execution of this LEASE and before June 30, 2000, CITY shall, at its own expense, retain an independent MAI-certified appraiser who shall determine the "Fair Market Rental Value" of the Leased Land. On July 1, 2000, and the date every five years thereafter (each a "Rental Adjustment Date"), the total annual rental to be paid under the terms of this LEASE shall be adjusted to the Fair Market Rental Value at the highest and best use of the Leased Land, 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 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. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY may at its own expense, retain an independent MAI-certified appraiser who shall determine the adjusted annual rental rate at the Fair Market Rental Value of the Leased Land in accordance with Section 3.2 The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE gives notice of objection. If LESSEE objects to the appraiser's determination of the Fair Market Rental Value, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage a second independent MAI-certified appraiser at LESSEE's expense to make a second appraisal of the Fair Market Rental Value in accordance with Section 3.2. If the second appraisal determines a Fair Market Rental Value that varies from that determined by the first appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the appraisals. If the second appraisal determines a Fair Market Rental Value that varies from the first appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the Fair Market Rental Value and the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this Lease. LEASE AGREEMENT September 24, 1997 City - Hughes Page 5 �.3 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to the LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent MAI-certified appraiser at LESSEE's expense to make an appraisal under the terms of Sections 3.2 and 3.3 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 the appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage a second independent MAI-certified appraiser at CITY's expense to make a second appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with Section 3.2. If the second appraisal determines a Fair Market Rental Value that varies from that determined by the first 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 second appraisal determines a fair market Rental Value that varies from the first appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the Fair Market Rental Value and the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this Lease. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if the CITY provided a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date. 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 CITY. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was LEASE AGREEMENT September 24, 1997 City - Hughes Page 6 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 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. ARTICLE 4 — USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. 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) Site is to be completely cleaned and restored to its present condition or better upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of hazardous materials on the Leased Land. 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. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port public facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations and scheduled fees from time to time even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. LEASE AGREEMENT September 24, 1997 City - Hughes Page 7 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, 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 to LESSEE should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. ARTICLE 5 — UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all city regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE 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. CITY adopted the Uniform Building Code, 1991 edition, and all construction will be in compliance thereto. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of 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 the CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. LEASE AGREEMENT September 24, 1997 City - Hughes Page 8 r2(o 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject, however, to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall be without expense therefor, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage, gas, power line and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other,join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities and other users or tenants of leased 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 efficient operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. LEASE AGREEMENT September 24, 1997 City - Hughes Page 9 - 1 ARTICLE 6 — CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) LESSEE shall cause to be constructed on the Leased Land a building for its marine charter/tour/retail business by May 1, 2000. b) The cost of any such construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. c) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. d) LESSEE shall supply CITY with a copy of all building plans and specifications and a site plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. e) LESSEE, upon commencement of permissible building or construction activities on the Leased Land, shall continue such activities through to completion with diligence and continuity. f) On completion of the improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed. g) Any general contractor employed by LESSEE or its sublessees shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000.00), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurance 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)', a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Affiliate means a person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with,a corporation subject to the Alaska Corporations Code. LEASE AGREEMENT September 24, 1997 City - Hughes Page 10 h) CITY may, as contemplated by Alaska Statutes, give notice of non- responsibility for any improvements constructed or effected by LESSEE on the Leased Land. i) LESSEE shall comply with all federal, state and local statutes and regulations with respect to such construction including any required finding by the City Council of Seward that such action is in the public interest. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 above, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so 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 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 13.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition, or better, as at the commencement of this LEASE, ordinary wear and tear excepted. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from LESSEE's operations. 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 condition different from its original condition provided CITY has granted written approval of LESSEE's plans for development of the Leased Land contours, including its plans for material extraction and final grade. LEASE AGREEMENT September 24, 1997 City - Hughes Page 11 2 °) 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 God, acts of the enemies of the United States of America, sabotage, war, 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 — CITY ACTS OF DEFAULT Each of the following shall be a "CITY Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, when they are used in this LEASE, any one or more of the following events: 9.1 Failure by CITY to fulfill, observe or perform any covenants 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 CITY by LESSEE; 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 CITY within the applicable period and diligently pursued until the default is corrected. 9.2 Violation by CITY of any applicable laws or regulations of the United States, the State of Alaska, the Kenai Peninsula Borough, or the City of Seward or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government pursuant to the regulations of such agencies for a period of sixty (60) days after written notice specifying such violation has been given by the agency to CITY; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the violation is corrected. Furthermore, if CITY shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined, provided such proceedings are diligently pursued. ARTICLE 10 — REMEDIES FOR CITY'S ACTS OF DEFAULT 10.1 Whenever an act of default by CITY shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, LESSEE shall have the following rights and remedies in addition to any rights and remedies that may be given to LESSEE by statute, common law or otherwise: a) Withhold payment of any rent otherwise due CITY; LEASE AGREEMENT September 24. 1997 City - Hughes Page 12 30 b) Refuse to proceed with any of LESSEE's other performance obligations under this LEASE; c) Recover whether this LEASE be terminated or not from CITY reasonable attorney's fees and all other expenses incurred by LESSEE by reason of the default by CITY; and d) Declare this LEASE terminated. 10.2 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of CITY's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.3 Each right and remedy of LESSEE provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by LESSEE of any one or more of the rights and remedies provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by LESSEE of any or all other rights or remedies provided for in this LEASE, now or thereafter existing at law or in equity or by statute or otherwise. 10.4 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 — LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 11.1 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. 11.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this LEASE for a period of 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 LEASE AGREEMENT September 24, 1997 City - Hughes Page 13 3i instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 11.3 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 11.4 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption or threat to the activities of any person or entity other than those of LESSEE. 11.5 Failure by LESSEE to construct, in accordance with Article 6 hereof, a building for its marine charter/tour/retail business on the Leased Land and place the facility in service by May 1, 2000. ARTICLE 12 — REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law or otherwise: 12.1 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 LEASE AGREEMENT September 24, 1997 City - Hughes Page 14 3� conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.09.504) with respect to sale of property shall be a commercially reasonable disposal. 12.2 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 sub- paragraph 12.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 12.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from sublessees or other occupants of the Leased Land; c) Recover, whether this LEASE be terminated or not, reasonable attorney's fees from LESSEE 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 rent reserved under this LEASE discounted to the date of such breach at the rate of eight percent (8%) per year. If the Leased Land or any part thereof be re-let by CITY for the unexpired term of this LEASE, CITY shall reimburse to LESSEE upon receipt an amount not to exceed the amount received by CITY under this paragraph. 12.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 12.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 12.6 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 LEASE AGREEMENT September 24, 1997 City - Hughes Page 15 33 provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 12.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 13 — TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13.1 Real Property Improvements. All improvements 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, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY without cost to CITY. 13.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 14 — SUBLEASE OR ASSIGNMENT 14.1 Assignment of Lease or Subleasing. The parties recognize that the LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the Resolution. LESSEE may only assign or sublease this LEASE of the Leased Land with CITY's prior written consent which shall be granted if the use of the Leased Land by the proposed assignee or sublessee is: a) Compatible with the use of adjacent lands; b) A permitted use under the then existing zoning regulations and comprehensive land use plan; and c) Found to be in the public interest by the City Council of CITY to such assignment or subletting. LEASE AGREEMENT September 24. 1997 City - Hughes Page 16 14.2 Sublease Consent. CITY shall review, process, and approve sublease consent requests subject to the following: a) LESSEE shall provide a copy of the sublease agreement to CITY, including sublease amounts. b) LESSEE shall remain responsible for performance of all its obligations under the LEASE of the premises from CITY. A sublessee shall be obligated to perform all terms and conditions of LEASE between LESSEE and CITY with respect to the sublease of the premises, and such terms and conditions shall be incorporated in the sublease agreement by reference. c) LESSEE shall pay to CITY an amount equal to THIRTY-FIVE PERCENT (35%) of sublease amounts received under the sublease agreement in excess of the existing Fair Market Rental Value of the Leased Land. The payment of such sublease amounts shall be due beginning with the quarterly rental payment due date immediately following the date the CITY approves the sublease, or in accordance with such other payment plan as is mutually accepted by CITY and LESSEE. 14.3 Assignment of Lease for Security. Notwithstanding Section 14.1 above, LESSEE may assign, encumber or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 12 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to 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 11.3, CITY shall not exercise any of the remedies afforded to it under Article 12 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LEASE AGREEMENT September 24, 1997 City - Hughes Page 17 35 LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser or transferee shall remain bound by each and every term of this LEASE. 14.4 Assignment to Affiliate. LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2); provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 15 — LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify and hold CITY harmless from any and all liability or claims for damages, including personal injuries, 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, agents or contractors or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its agents, employees, 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 16 — 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 agents, employees, or contractors or from conditions existing or activities occurring on the Leased Land prior to the effective date of this LEASE. ARTICLE 17 — INSURANCE 17.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, commercial general liability insurance, with limits of liability of ONE MILLION DOLLARS ($1,000,000) for all injuries and/or deaths resulting to any one person and ONE MILLION DOLLARS ($1,000,000) limit from any one occurrence. Coverage under such insurance shall also include explosion, collapse and underground property damage hazards. Such insurance shall include contractual liability. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as 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 may notify LESSEE of any requested increase in insurance coverage. LEASE AGREEMENT September 24, 1997 City - Hughes Page 18 3 C 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 37 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). LESSEE shall furnish CITY, on forms supplied by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. 17.2 Subrogation Rights Waived. All of the insurance policies required above as well as any other insurance carried by LESSEE or CITY shall provide that the insurers waive their rights of subrogation against each other and their respective officers, servants, agents or employees. LESSEE and CITY further agree to waive and agree to have their insurers waive any rights of subrogation (whether by loan receipts, equitable assignment or otherwise), with respect to deductibles under such policies and with respect to damage to equipment including the loss of use thereof, whether insured or not. LESSEE shall also name CITY as an additional insured on the general liability insurance policy maintained by LESSEE as required above, excluding coverage for claims resulting from CITY's sole negligence. ARTICLE 18 — CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such 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 LEASE AGREEMENT September 24, 1997 City - Hughes Page 19 3� 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 19 — ARBITRATION Any dispute between CITY and LESSEE with respect to any provision of this LEASE or the rights and obligations of the parties hereunder shall be decided by arbitration, in accordance with the provisions of this Section. 19.1 Consent Panel. The party desiring arbitration of a dispute shall give written notice to that effect to the other party specifying in such notice the name and address of a person to serve as an arbitrator. Within fifteen (15) days after receipt of such notice the other party shall give written notice to the first party specifying the name and address of another person designated to serve as an arbitrator. If neither party has objected to the other's designation within fifteen (15) days of the notice by the second party of its designation of an arbitrator, then the two chosen arbitrators (called the "consent panel") shall select a third person agreeable to both to become the third member of the consent panel. The consent panel may utilize informal techniques and hold informal hearings without reference or adherence to the rules or procedures of the American Arbitration Association. Promptly and within thirty (30) days of concluding any proceeding the consent panel shall render its written decision. It is the intent of this subparagraph to provide for a speedy and inexpensive resolution of disputes provided the parties agree to such a procedure. 19.2 Formal Arbitration. If either party objects, within fifteen (15) days of the second party's designation of an arbitrator to the other's choice of an arbitrator pursuant to paragraph 19.1 above, or the party desiring arbitration initially decides not to use the consent panel procedure, then the matter shall be promptly referred to the American Arbitration Association in accordance with the then existing rules of the American Arbitration Association. 19.3 Arbitration Awards. Any award by either a consent panel or as a result or proceedings before a panel pursuant to the rules of the American Arbitration Association shall be enforceable in accordance with Alaska Statutes. Any award shall include an award of costs, interest and attorney fees to the prevailing party. ARTICLE 20 — MAINTENANCE AND REPAIRS 20.1 Normal Maintenance. During the entire term of this LEASE and every renewal or extension hereof, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the LEASE AGREEMENT September 24, 1997 City - Hughes Page 20 3 $ Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, ordinary wear and tear excepted. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution and other protective equipment, if any are placed on Leased Land. 20.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk and expense. 20.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrators 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 LEASE AGREEMENT September 24, 1997 City - Hughes Page 21 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 21 — ENVIRONMENTAL CONCERNS 21.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. 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 during and after the term of this LEASE, and resulting from the use, keeping, storage or disposal of Hazardous Material on the site by LESSEE, or arising out of or resulting from LESSEE's operations at the site except for those arising out of the CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the site or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked or emitted, any material into the atmosphere, ground, ground water, sewer system or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare or safety of persons, whether located on the Leased Land LEASE AGREEMENT September 24, 1997 City - Hughes Page 22 1} or elsewhere; or (b) condition, use or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney, consultant and expert fees, court costs and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material; iii) Any lawsuit brought or threatened, settlement reached or government order relating to such Hazardous Material; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 21.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines,judgments, liabilities, settlements, damages, costs or expenses (1) occur during the term of this LEASE; and (2) arise in whole or in part from the use of, operations on, or activities on the Leased Land by LESSEE or their employers, employees, agents, invitees, contractors, subcontractors or authorized representatives. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Facility Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. LEASE AGREEMENT September 24, 1997 City- Hughes Page 23 14 I 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 "hazardous waste", "extremely hazardous waste" or a "hazardous substance" under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, 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. 21.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The City Manager may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately 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. LEASE AGREEMENT September 24. 1997 City - Hughes Page 24 " I ARTICLE 22 — ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof); and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 23 — CONDITIONS AND COVENANTS All the provisions of this LEASE shall be deemed as running with the land, and 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 24 — NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 25 — TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 26 — 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 27 — SUCCESSORS IN INTEREST Each and all of the terms, covenants and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. LEASE AGREEMENT September 24, 1997 City - Hughes Page 25 4 3 ARTICLE 28 — ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 29 — GOVERNING LAW This LEASE shall be governed by, construed and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, including without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 30 — PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. ARTICLE 31 — RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 32 — INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the assistance of counsel in drafting and reviewing this LEASE. ARTICLE 33 — NUMBER AND GENDER In this LEASE, the neuter gender includes the masculine and the feminine, and the singular number includes the plural; the word "person" includes corporation, partnership, firm or association wherever the context so requires. ARTICLE 34 — MANDATORY AND PERMISSIVE "Shall," "will" and "agrees" are mandatory; "may" is permissive . LEASE AGREEMENT September 24, 1997 City - Hughes Page 26 y1-1 ARTICLE 35 — CAPTIONS Captions of the articles, paragraphs and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this LEASE. ARTICLE 36 — AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 37 — 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: 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: Carl I. Hughes Kim Hughes PO Box 241 Seward, Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 38 — FIRE PROTECTION LESSEE shall at its sole cost, risk and expense provide fire protection to its operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized. LESSEE shall continue to provide and maintain industry LEASE AGREEMENT September 24, 1997 City - Hughes Page 27 4S accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field of fire prevention and control LESSEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five years. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD ge■Ke C4-- /4/- Mt illAcLaah. y: Ronald A. '.ems ini Carl I. Hughes Its: City Ma ':er � Date: 7.9 /0 7 Date: V2/17.7 .7 /, '2114-1- ty(-11/3 Kim Hughes Date: Y/7/1 7 ATTEST: SUBMITTED BY: / , City Clerk Foster M. Singleton, Ha:a:rmaster (City Seal) Y! ! LEASE.AGREEMENT September 24, 1997 City - Hughes Page 28 �-IP STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) / THIS IS TO CERTIFY that on this ._ _l.day of .0—, 1997, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Ronald A. Garzini, 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. \\\�\\0\!l t►► !//,,,i WITNESS my ha nP •nvtarii *the day d year first hereinabove written. _4 ETA .� 4Mtd =c0:,t, • "" :1"z" lhar - Ci �G. o;y'•, e L P otary Public in :nd for Alas `, ',i// O 'A�, \\\\ My Commission Expires: I ////1111111\\\ STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this 1? 1, day of , 1997, before me, the undersigned, a Notary Public in and for the State of Alaska, rsonally appeared Carl I. Hughes and Kim Hughes, known to me and to me known to be the individuals named in and who executed the foregoing document for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written.• i4 � ►# 1 .*1 !#" LL Notary Public in .nd for Alasl My Commission Expires:_____________ \\\\\\\�a t 11iik///i ..,T�q,Q-L•v ,'/// /O,F,A�\\\\\\ LEASE AGREEMENT September 24, 1997 City - Hughes Page 29 SEWARD SMALL BOAT HARBOR BOARDWALK LEASE SITES Lli ' 1 ,1 ICI II111lII 1 1111 -1NI1 11 P1►IJJ11I11I11111IIJl11 I iiJ/JJ!I/ rjJr1tJ1J) )I)/J/ )IJl//I/II//ThI I 0. 4 3/.oV 3/.og 3/. 02 3/. 08 3/. og 3/. og — — - CYCI I Z. 3 \)ik 4\ 4- s, 4 5 6 7 1)3190 5F 1,2Z0 SF 1 4, /, 220 yF I, 22..0 5F 1, 22-0 SF a I) • •e7 SF 1,ZZo 5p-' 30, • 30- 30, 30, 30- 30. iff 3c, (J131" T- 5IT (Measurements are approximate.) try k v! a Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING THE 2015 VOLUNTEER FIRE ASSISTANCE GRANT(VFA)IN THE AMOUNT OF$6,170.10 AND AUTHORIZING THE 10% MATCHING FUNDS OF$685.50 AND APPROPRIATING FUNDS WHEREAS, the Seward Fire Department applied for and was awarded a Volunteer Fire Assistance grant from the Alaska Department of Natural Resources in the amount of$6,170.10; and WHEREAS,the city is required to provide a 10% percent cash match,which means the city will spend $685.50 in local funds as a condition of the grant and these funds have been identified within the current Fire Department 2015 budget; and WHEREAS, the grant must be used for purchasing equipment identified in the grant application(rolls of forestry hose,hand held weather stations,forestry nozzles and forestry helmets, goggle and shrouds)for a total project value of$6,855.60; and WHEREAS, these purchases will continue providing our firefighters with the maximum protection and interoperability needed to protect the lives and property of the citizens of Seward,and further fulfill equipment needs identified in our mutual aid agreement with the Alaska Department of Natural Resources. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The 2015 Volunteer Fire Assistance Grant award in the amount of$6,170.10 is hereby accepted and appropriated along with the required cash match of$685.50 to the Volunteer Small tools account number 01000-1221-7217-0022. Section 2.The$6,855.60 purchase will consist of for firefighting rolls of forestry hose,hand held weather stations,forestry nozzles and forestry helmets,goggle and shrouds as stated in the grant application. Section 3. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2015-053 PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 8th day of June 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 50 Council Agenda Statement ♦,OF Sely Meeting Date: June 8, 2015 u_�_,,,'�"t�0 To: City Council 14.ASlicP Aril Through: City Manager Jim H From: Fire Chief Edward Athey Agenda Item: 2015 Volunteer Fire Assistance Grant Award BACKGROUND& JUSTIFICATION: The Seward Fire Department applied for and has been awarded a Volunteer Fire Assistance(VFA)grant from the Department of Natural Resources, in the amount of$6170.10. The City is required to provide a 10% percent cash match in the amount of$685.50 in local funds as a condition of the grant. The total project value is$6,855.60. The grant funds must be used for purchasing equipment identified in the grant application. This year items will include rolls of forestry hose,hand held weather stations,forestry nozzles and forestry helmets, goggle and shrouds. These purchases will continue providing our firefighters with the maximum protection and interoperability needed to protect the lives and property of the citizens of Seward,and further fulfill equipment needs identified in our mutual aid agreement with the Department of Natural Resources. With the high cost of new wildland firefighting equipment, the Seward Fire Department continues to seek specific funding for this equipment. The US Forest Service grants are available annually,pending legislative approval. We are fortunate to have these grants to help the rural fire departments,and intend to apply as they are available. Upgrading our equipment will be an ongoing process. INTENT: Council accepts the Volunteer Fire Assistance grant and appropriate funds for the purchase of firefighting and safety equipment. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): Volume 1-page 14 X 2. Strategic Plan (document source here):page 19 X 3. Other (list): 2015 Budget X FISCAL NOTE: The 2015 Volunteer Fire Assistance Grant award in the amount of$ 6,170.10 will be appropriated to the Volunteer Account 01000-1221 along with the required cash match of $685.50 to be expended for the Volunteer Fire Assistance Grant project code of 01000-1221-7217-0022 Approved by Finance Department: Of )9 4- ATTORNEY REVIEW: Yes No Not Applicable X 5� RECOMMENDATION: 7� City Council approves Resolution 2015-0 accepting and appropriating the Volunteer Fire Assistance(VFA) grant in the amount of $6,170.10 to 01000-1221-7217 Fire Department Small Tools and Equipment for purchase of wild land firefighting equipment. c2- 1., OF Tb� 0 .\\V/, s 'THE STATE Department of Natural Resources �,r� :' � pf , DIVISION OF FORESTRY ;5 �_- --:d;_ _ -� J 550 West 76 Suuc 1450 OM _ Anchorage,AK 99501 Wit___fir_-�+ t;it} of Seward Main:907.269-8463 wti 1P GOVERNOR BI1.I, WALKER i ite/B�Riid+ng Dept. Fax:907269-8421 ALAS MAY 202015 May 18, 2015 RECEIVED Dear Volunteer Fire Department, Thank you for applying for the 2015 Volunteer Fire Assistance grants. A total of 30 fire departments applied for a Volunteer Fire Assistance (VFA)grant. 29 of the 30 applications will receive some level of funding at this time. One department is unreview and still to be determined. A total of$228,845.01 will be awarded to the current 29 departments. The enclosed spreadsheet lists all applicants and amount requested. If a fire department was awarded a grant, the amount awarded will be listed in the column titled in red "Amount Awarded". Some VFDs will receive a partial award. Successful applicants for VFA grants will soon receive their check from their local Forestry office. • Checks must be cashed within 90 days of issuance. This year it strongly advised checks be cashed upon receipt or by June 30"' at the latest. The state is moving to a new accounting system on July 1, 2015 and it is unclear how smooth the transition will go. • To be eligible for the 2016 VFA grants compliance documentation, such as copies of receipts for 2015 grant expenditures, must be submitted at the time of or prior to submitting a 2016 application to your nearest Forestry office.. • Volunteer Fire Assistance is an award of Federal Financial Assistance with funding from the USDA Forest Service and as such is subject to the Office of Management and Budget(OMB) Circular A-87, Cost Principles for State, Local and Indian Tribal Governments; OMB Circular A-102 (Grants and Cooperative Agreements with State and Local governments)as implemented by USDA regulation 7 CFR Part 3016 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments); and OMB Circular A-133 (Audits of States, Local Governments, and Non- Profit Organizations) as implemented by USDA regulation 7 CFR 3052. The OMB Circulars are available on the internet at www.whitehouse.qov/omb/grants. Electronic copies of the CFR's can be obtained at the following internet site: www.gpoaccess.gov/cfr/. If you are unable to retrieve these regulations electronically, please contact Arlene Weber-Sword at(907)269-8471. If an application was not fully successful do not be discouraged and continue to apply every year by submitting a complete application package by deadline. The local Division of Forestry offices will be sending out VFA award checks with a letter out lining compliance requirements sometime in the next few weeks. Sincerely, i Arlene Weber Sword Fire Staff Officer Enclosure 5 3 2015 Volunteer Fire Assistance Awards 5/12/2015 Fire Department Amount Amount Division of Requested Awarded Forestry Office Chena Goldstream VFD $7,279.79 $7,279.79 Fairbanks Ester VFD $8,750.00 $8,750.00 Fairbanks Steese Area VFD $10,000.00 $10,000.00 Fairbanks Saicha VFD $9,965.00 $2,578.50 Fairbanks Anchor Point VFD $10,000.00 $10,000.00 Kenai-Kodiak City of Kenai FD $8,499.00 $8,499.00 Kenai-Kodiak Kachemack Emergency Services $8,766.00 $8,766.00 Kenai- Kodiak Nikiski FD $9,305.10 $9,305.10 Kenai- Kodiak Ninilchick VFD $8,748.00 $8,748.00 Kenai- Kodiak Seldovia VFD $4,095.00 $4,095.00 Kenai- Kodiak Seward, City of FD $6,170.10 $6,170.10 Kenai- Kodiak _-- :_ =4 .f Butte VFD $9,000.00 $9,000.00 Mat Su Caswell VFD $9,831.22 $9,831.22 Mat Su Houston VFD $8,249.71 $8,249.71 Mat Su Palmer Fire&Rescue $9,769.72 $10,000.00 Mat Su West Lakes VFD $10,000.00 $10,000.00 Mat Su Willow VFD $9,990.00 $9,990.00 Mat Su Klehini Valley VFD $2,340.00 $2,340.00 N Southeast Skagway VFD $6,303.79 $6,303.79 N Southeast Sitka VFD $9,000.00 $9,000.00 N Southeast Klawock VFD $10,000.00 $9,321.58 S Southeast Bethel VFD $9,147.60 $9,147.60 Southwest Area Dillingham VFD $8,931.60 $8,931.60 Southwest Area McGrath VFD $7,938.77 $7,938.77 Southwest Area Port Alsworth VFD $8,851.50 $8,851.50 Southwest Area Still to be Northway VFD $9,900.00 determined Tok Tok VFD $5,832.69 $5,832.69 Tok Valdez-Copper KennicottiMcCarthy VFD $9,000.00 $9,000.00—River _- v Valdez-Copper Strelna VFD $9,010.30 $9,018.36 `River Galena VFD $1,896.70 $1,896.70 Anchorage GRAND TOTAL $246,579.65 $228,845.01 6 1 2015 Volunteer Fire Assistance (VFA) Grant Application Application Period: December 15, 2014—March 15, 2015 Late, incomplete or illegible applications will not be considered Applicants must attach matching share documentation & signed Assurances -Non Construction Programs & Certifications Regarding Lobbying; Debarment, Suspension and Other Responsibility Matters; and Drug-Free Workplace Requirements; if not attached application will be considered incomplete. Fire Departments A. Years/Dates of Last 5 VFA grants 2013,2102,2009,2008 B. Are you In Compliance with Past Grants Yes ® No ❑ C. Are You Registered With Alaska Division of Life Safety? Yes[8] No[1] Please submit copy of registration D. Is Your Service Area Population Less Than 10,000? Yes ® No ❑ E. Is Your Department Newly Organized Since January 1, 2012? Yes❑ No 12 F. Project is for?(Check all that apply) Organizing ❑Training ❑ Equipment/Supplies ❑Prevention ❑ G. Grant Amount Requested: $685.50 ($10,000 maximum) Applicant Information Business (Legal Name) of Fire Department: City of Seward Fire Department Address:PO Box 167 City: Seward Zip:99664 Contact Person:Chief Edward Athey and Janice Melvin,Administrative Assistant Phone Number: Work(907)224-3445 Home or cell:(907)362-3008 Fax:(907)224-8633 Cell:(907)362-1660 email:eathey @cityofseward.net orjmelvin @cityofseward.net FDID # 26400 Federal Tax ID# or DUNS#037996634 1) Does your fire department have a cooperative agreement with the Alaska Division of Forestry, the Department of Interior(DOI) or the USDA Forest Service? Yes 12 No❑ 2) Your Cooperative Agreement is with: ❑ DOI Agency (BLM, FWS, BIA, NPS) p State Division of Forestry © USDA Forest Service Agreement Number 13FI11100430.006 3) Are fire reports submitted to the Alaska Division of Forestry, BLM-Alaska Fire Service, or the U.S. Forest Service or other federal agency for all wildland fires attacked? Yes © No❑ 4) Are ANFIRS reports submitted to the Alaska Division Fire & Life Safety? Yes p No❑ 5) Does your department respond to fires outside your service area? Yes p No ❑ 6) Is fire protection available to all residences, businesses and lands within your primary fire protection area without additional charge? Yes © No ❑ 7) Do you have a mutual aid agreement with surrounding fire departments? Yes © No ❑ 8) Average annual number of fire calls over the last three years? Wildland 3 Other 21 9) How many hours of fire training do you average per person per month? 9 hours. What percent is related to wildland fire training? 2 % What is the Department's ISO rating? 4/9 10)How many paid members does your fire department have? 2 How many volunteer members?32 11)How many members of your fire department are NWCG "red-carded" under the Incident Command System? 2 12)1s your department NIMS compliant? Yes 12 No ❑ 13)Does your department have any federal excess equipment acquired through the Alaska Division of Forestry? Yes ❑ No E1 Which Type? FEPP ❑ FFP ❑ 2015 DOF VFA Grant Application I Page 1 5 6 PROJECT DETAIL INFORMATION (10%MINIMUM MATCH REQUIREMENT) NOTE: If awarded a grant, disbursement will be only for items that are listed below. Refer to the manual for instructions on how to get prior approval to make changes to this list of items. There are four types of expenses, either wildland or structural, that can be funded under VFA. It should be clear from your description that the item clearly fits within one of these categories: • Organizational Improvements— legal and administration fees, elections, advertising, etc. associated with forming a district, annexing an area to an existing district, or improving the administration of a newly formed district. • Equipment, Tools/Supplies, or Safety Improvements—refer to the instruction manual for description of allowable items • Training— both Wildland or Structural • Communications Equipment- (MUST BE P25 COMPLIANT) refer to the instruction manual for description of allowable items If in-kind for match is used, list the type(hours attending training, donated time from attorney, meeting facility used for training, etc.)on one of the lines of the chart. If you have any questions regarding if certain activities are eligible as in-kind match, contact your local FMO or Fire Staff Officer prior to the application deadline. MAXIMUM FUNDING AWARD IS $10,000 Please indicate below if this item is to be used for Wildland(Wild),Structural(Struc),or Both. List items in order of priority V MATCHING DOF USE a `o i ITEM DESCRIPTION MATCH SHARE ONLY ,,' TOTAL TYPE AMOUNT - 2 o & QUANTITY COST (Cash or 10% APPROVED 3 COST PER ITEM t In-kind) minimum) © El El 12 rolls of 100'forestry hose 1"at$150.00 ❑Fully per roll 12 $1,800.00 Cash Match I$ 180.00 ❑partial i ❑Denied 0 4 rolls of 100'forestry hose 1 1/2"at ❑Fully $160.00 per roll 4 $ 640.00 Cash Match $ 64.00 ❑Partial ❑Denied © El 1:3 4 rolls of 50'forestry hose 3/4"at$60.00 per ❑Fully roll 4 $ 240.00 Cash Match $ 24.00 ❑Partial ❑Denied ❑ ❑ © Kestrel 3500 hand weather station units at ❑Fully $260.00 each unit 4 $ 1,040.00 Cash Match $ 1 04.00 ❑partial ❑Denied © ❑ ❑ Progressive Hose Lay Bags$150.00 each ❑Fully fort 2 $ 300.00 Cash Match $ 30.00 ❑Partial ❑Denied (+l El 4 each 1"forestry nozzles at$20.00 each 4 y and 4 MCCIoud Tools at$65.00 8 $440.00 Cash Match j$ 44.00 ❑Partial ❑Denied © El El assorted tees and lees for forestry hose connections prices from I ❑Fully $20.00 to$85.00 each and 3 1 112 gated wyes at$265.00 see 35 $ 1,705.60 Cash Match;$ 1 70.50 ❑Partial attached sheet ❑Denied © ❑ 0 I ❑Fully 18 $ 690.00 Cash Match $ 69.00 ['Partial V ❑Denied TOTALS ❑Fully 87 ($6855.6 )0 $ 685.50 ❑Partial ❑Dented �-"' 685.50 Grant Funding Requested (Total cost minus 10% fire department match share) $ terio, to 2015 DOF VFA rant Application I Page 2 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA, AUTHORIZING USE OF THE CAPITAL CREDIT REFUND FROM CHUGACH ELECTRIC IN THE AMOUNT OF $211,659 TO EXTENT PRIMARY ELECTRICAL SERVICE AND ADD A FOURTH RECLOSER AT THE SPRING CREEK SUBSTATION, AND APPROPRIATING FUNDS WHEREAS,the City of Seward was issued a Capital Credit Refund in 2015 in the amount of$211,659 from our wholesale power provider, Chugach Electric Association; and WHEREAS, the Seward City Council finds utilization of the refund for the purpose of constructing a primary extension and support infrastructure in the Seward Marine Industrial Center (SMIC),to be the highest benefit to the community; and WHEREAS,the Seward Marine Industrial Center(SMIC)is owned by the city,and has real property lots available for lease to private sector users. Some parcels remain unleased because of the lack of critical infrastructure; and WHEREAS, using the capital credit refund to add a fourth recloser at the Spring Creek Substation and install electric primary service out of the substation will provide accessibility to nine lots that are currently not energized, and make additional city leased parcels accessible to power, thereby promoting the development of SMIC. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City Council approves the electric infrastructure project to add a fourth recloser at Spring Creek Substation and install electric primary service out of the substation across to Jellison Avenue to Mustang Avenue,continuing up to Olga Street,as detailed on the attached map, entitled Exhibit A. Section 2. Funding in the amount of$211,659 is hereby appropriated from the Electric Enterprise Fund reserves account no. 15000-0000-3400 to the Electric Infrastructure account no. 15000-3010-8101. Section 3. This resolution shall take effect immediately. 51r-1 CITY OF SEWARD, ALASKA RESOLUTION 2015-054 PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 8`"day of June. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 53 Agenda Statement e of Meeting Date: June 08, 2015 4%4. To: City Council '' 4LA5t4-1* Through: Jim Hunt, City Manage John Foutz, Electric Utility Managers Agenda Item: Primary Extension at SMIC BACKGROUND & JUSTIFICATION: The City has received a lump sum capital credit from Chugach Electric Association(CEA) in the amount of$211,659 covering the period 1989 to the present. The payment was presented at the January 12, 2015 City Council meeting. At that meeting administration asked for feedback from Council and the public on potential uses for the funds. Based on input provided by individual Council members, department heads, and members of the community, administration recommends a portion of the funds be used immediately to install a primary electrical extension in the Seward Marine Industrial Center. Costs for this project are estimated at $110,000. Customers here would be responsible for their costs in getting power from the primary to the meter base, as is the case elsewhere. The Seward Marine Industrial Center (SMIC) is owned by the City, and has lots available for lease to private sector users. Some parcels remain unleased because of the lack of critical infrastructure such as water, sewer and electric, and because the cost for an individual business to extend the line(s) is often cost prohibitive and makes the venture economically unfeasible Using the capital credit refund to add a fourth recloser at the Spring Creek Substation, install electric primary out of the substation, across Jellison Avenue to Mustang Avenue and continuing up Mustang to Olga Street giving accessibility to nine lots that are currently not energized. This project is consistent with the City's focus on developing the SMIC basin and uplands, and will aid in attracting businesses to the area. INTENT: Extend electric primary service to nine lots in SMIC to further business development in the area. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and 1. expand utilities to meet existing needs and encourage future X development. 2 Strategic Plan: The mission of the City of Seward government it is to X provide quality leadership and economic wellbeing of its citizens 3. Other (list): X FISCAL NOTE: Funds for this project are available in the Electric Enterprise Fund from the Chugach Capital Credits in the amount of$211,659. Administration recommends a portion of the funds be used immediately to install a primary electrical extension in the Seward Marine Industrial Center. Costs for this project are estimated at $110,000. An appropriation will be made for the full $211,659, and any unspent funds will be retained, unspent, in the Electric Fund. Approved by Finance Department: kftlit/09- ATTORNEY REVIEW: Yes No Not Applicable X Re-56l0-h`m 201 - 05L4 RECOMMENDATION: Council authorize the use of a portion of the CEA credit to fund an electric primary extension from the Spring Creek Substation across and to the eastern end of Mustang Avenue, including a fourth recloser at the substation. ( o Exhibit A ` ; + v lit ova �u x ; .c $ a e 9t _ 'Ir , s' a , '+w -. wee -,+4, + . .+. f .w V ,' ,,' +�_ > t !,; u _ �_ .. .0` .,,,a.= ar.as %L �r __. `I c t 4 V , ' s �4 � tii„ *- 1 wf � e y ... r s J' y X14 „,,4001 _ . ' -. . P . , .4 ,, . F 03 r' JF „d* „a..., .2r O I ' 41.41011*lig* . 41*1,1764.1 ,.r 4.... 1 t f I I . 1 ,t ,. 44pio cipt,,,,, c . 111° 1 a „ «�...... 1 , r.......... , /I ' * te '''' Fl ” r . — -mmemr..., . j..., -s, 4. , ..y. ■ ( . �a , % E Eli . . 14-# iliL_ i 4 ik -),9„,. •• , ,. , _______ . . fi l '':' , 1 i a P i Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-055 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SETTING THE MILL RATE (UNCHANGED) FOR 2015 AT 3.12 MILLS WHEREAS, the Seward City Council met in televised public work sessions on September 16, 19 and 24, 2013, to prepare the 2014/2015 Biennial Budget which was approved by the City Council on November 12,2013 after two public hearings; and WHEREAS, the mill rate for the City of Seward for 2014 was established, unchanged at 3.12 mills, during the biennial budget process, but the City did not set the mill rate for 2015 at the same time, as it was considered premature to do so; and WHEREAS, the total assessed property valuation as determined by the Kenai Peninsula Borough Assessor, including any supplemental assessment rolls, form the general basis for computing estimated property tax revenues; and WHEREAS, the Kenai Peninsula Borough will mail property tax bills on July 1, with taxes due in full on or before October 15, necessitating approval of the City's 2015 mill rate which is recommended to remain unchanged at 3.12 mills. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. The total assessed valuation as determined by the Kenai Peninsula Borough Assessor, and any supplemental assessment rolls for said period which may be certified by the Borough Assessor at a future date, shall be the basis for computing estimated property tax revenues for the City of Seward,Alaska. Section 2. The rate of levy on the 2015 real and personal property tax rolls shall be and is hereby levied at the rate of 3.12 mills per dollar of assessed valuation in Municipal Service Zones One(Borough designation TCA 40)and Two (Borough designation TCA 41). Section 3. This resolution shall take effect immediately upon adoption. LO CITY OF SEWARD,ALASKA RESOLUTION 2015-055 PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 8th day of June,2015. THE CITY OF SEWARD,ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) (D � COUNCIL AGENDA STATEMENT Meeting Date: June e015 ) aot 5 e.y OF Set" Through: James Hunt,City Manage.l ►;'4'z•T .A From: Kristin Erchinger, Finance Director RE: 2015 Mill Rate unchanged at 3.12 mills BACKGROUND&JUSTIFICATION: The Seward City Council approved Resolution 2013-080 on November 12, 2013, approving the 2014/2015 Biennial Budget and setting the 2014 mill rate unchanged, at 3.12 mills. One mill is equal to 1/1000 of one dollar, such that $1 in tax is assessed for every $1,000 in property value. A mill rate of 3.12 mills equates to a tax bill of$546 for a median-priced home valued at$175,000. The City of Seward generally approves the mill rate at the same time as it approves the budget. However, when the City transitioned to a biennial budget, there was concern with approving a mill rate for a period two years in the future. Therefore, when the 2014/2015 Biennial Budget was approved, the Council approved the mill rate for 2014,but not for 2015. Property tax is levied by the City and collected by the Kenai Peninsula Borough. Taxes are payable when billed, with bills being mailed on July 1st and due in full on or before October 15. The taxpayer has the option of paying in two equal installments,with the first half due before September 15 and the second half due on or before November 15. If the first-half of taxes are not paid by September 15, payment in full becomes due on or before October 15. The City of Seward maintains two taxing jurisdictions; one on the west side of Resurrection Bay and one of the east side of Resurrection Bay. It is possible to establish different mill rates for each of the jurisdictions, although the City has historically maintained equal rates. The administration recommends the mill rate remain unchanged at 3.12 mills;the mill rate has been 3.12 mills since 1997. INTENT: To maintain the current mill rate of 3.12 mills for 2015. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan(document source here): X 2. Strategic Plan(document source here): X 3. Other(list):2014/2015 Biennial Budget X FISCAL NOTE: The 2015 Budget was predicated on a mill rate of 3.12 mills. Therefore, there is no budgetary impact associated with this resolution. The General Fund Budget for 2015 anticipates real and personal property tax revenues of$1,010,000. Thus,a 1.00 mill property tax generates approximately$323,000 in revenue. Approved by Finance Department: ,,_ /f� /1_ ATTORNEY REVIEW: Yes No X Not Applicable Try krro► - IS—CAS RECOMMENDATION: City Council maintain a m Irate of 3.12 for 2015. Sponsored by: Bardarson CITY OF SEWARD,ALASKA RESOLUTION 2015-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORTING THE QUTEKCAK NATIVE TRIBE'S FEDERAL RECOGNITION EFFORTS WHEREAS, the Alaska Indian Reorganization Act provides for Federal recognition of previously unrecognized groups of Alaska Natives "having a common bond of occupation, or association, or residence within a well-defined neighborhood, community or rural district. (25 USC§ 473a); and WHEREAS, the Qutekcak Native Tribe in Seward, Alaska, has a long and well documented residence and history of activity on the Eastern Kenai Peninsula, and Qutekcak Native Tribe's administrative offices are located in Seward, Alaska, and the majority of its membership reside within the Seward area thereby qualifying them as an Indian Tribe under the legal description; and WHEREAS, the Qutekcak Tribe has made application to the Federal Bureau of Indian Affairs for such recognition; and WHEREAS, to date two hundred and twenty five (225) tribes in Alaska have received recognition under this Act; and WHEREAS, the Qutekcak Native Tribe qualifies to organize under this standard; and WHEREAS, the Qutekcak Native Tribe is recognized as an Alaska Native tribe by and serves on the board of directors for Chugachmiut, which is a regional social service corporation servicing Chugach region tribes, Chugach Alaska Corporation, Chugach Regional Resources Commission, and the North Pacific Rim Housing Authority; and WHEREAS, the Qutekcak Native Tribe and the City of Seward have collaborated on a number of projects, including the Special Alaska Native/American Indian Section of the Seward Community Library, the All-American City Award, the Shellfish Hatchery, and the new Community Child Development Center (currently under construction) each of which has contributed to the long-standing partnership between the Qutekcak Native Tribe and the City of Seward; and WHEREAS, federal recognition would enable the Qutekcak Native Tribe to fully exercise its sovereignty and to access programs, services, and funding provided to federally recognized tribes and their members through the Bureau of Indian Affairs, the Indian Health Service,and the Institute of Library and Museum Services and others; and tP CITY OF SEWARD,ALASKA RESOLUTION 2015-056 WHEREAS, Federal recognition would entitle the Qutekcak Tribe, as an independent entity, access to special programs provided by the Bureau of Indian Affairs, the Indian Health Service, and the Institute of Library and Museum Services that are made available only to recognized tribes and members and to funds that are set aside for tribes within certain Federal programs; and WHEREAS, on April 23, 2007, the Seward City Council passed a resolution expressing support for the organization and requesting Federal recognition of the Qutekcak Native Tribe. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. The City Council of the City of Seward fully supports Federal recognition of the Qutekcak Native Tribe. Section 2. The City Council of the City of Seward requests Alaska's Federal Delegation to encourage Federal recognition of the Qutekcak Tribe. Section 3. This resolution takes place immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of June, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page CALL TO ORDER The April 27, 2015 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Christy Terry David Squires Dale Butts Iris Darling comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald said he was a second generation mariner and was concerned that the new 330-Ton Travelift was already out of service. He would have liked to see the city get a 500-Ton Travelift instead. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Terry added Resolution 2015-035 and Resolution 2015-036 to the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinances For Introduction Ordinance 2015-002, Amending The Land Use Plan And The Rezoning Of Lot 4, Fort Raymond Subdivision, From Institutional r(INS) To Auto Commercial (AC). b � City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page Resolutions Resolution 2015-035,Authorizing Additional Funding To The Seward Chamber Of Commerce In The Amount Of$14,128, And Appropriating Funds. Resolution 2015-036, Officially Renaming The North/South Right Of Way Currently Known As Hemlock Street To Crabapple Street Located Within The Southwest Corner Of The Forest Acres Subdivision. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Police Memorial Week May 10-16,2015 Certificate of Appreciation for Dr. Matthew Hall Chamber of Commerce Report.Cindy Clock reported on the Annual Seattle Partners trip, which she attended with Port and Commerce Advisory Board Chair Deborah Altermatt, Assistant City Manager Ron Long and Mayor Jean Bardarson. The group made contact with the Deep Sea Fisherman's Union and the Fishing Vessel Owner's Association at Fisherman's Terminal. The Energy Group would meet on April 29, 2015 at noon at the library, and the Seward Marine Industrial Center Group would meet on April 30, 2015 at 9:15 a.m. at the library. As part of the Seward Economic Growth Plan (SEGP), the Chamber of Commerce was hosting an introduction to the Business Retention&Expansion Program on April 30,2015 at 12:00 p.m. at the library. This was an opportunity for business owners and community members alike to learn about economic development strategy of the program. The next Chamber Luncheon would be Friday,May 1,2015 at the Breeze Inn,and the guest speaker would be Arni Thomson from the Alaska Salmon Alliance. There would be two customer service seminars on Thursday,May 14,2015 at the Breeze Inn featuring nationally-acclaimed speaker, David Aaker. These lively, two-hour workshops were designed to motivate people to improve customer service and to help employees make positive changes. Lots of great events would be happening the weekend of May 15-17, 2015, including: Chamber Open House, Military Appreciation Day, Seward Harbor Opening Weekend, and the Alaska SeaLife Center's Summer of Sharks Grand Opening& Festival. City Manager's Report.Jim Hunt reported the following purchase orders between$10,000 and $50,000 since his last report: $29,261.48 to Valley Power Systems for Ft. Raymond EMD Generator#4. City of Seward,Alaska City Council Minutes April 27, 2015 Volume 39, Page In response to Terry, Hunt said there had been a multiagency fire department exercise conducted last week where they practiced biohazard, radiation, and bomb squad drills. Butts requested that administration ensure the sidewalks would be cleaned and free of hazard in time for the Pink Cheeks Triathlon this weekend. In response to Keil,Hunt said there was a minor repair being done on the 330-Ton Travelift and was covered by the warranty. Hunt added that a 500-Ton Travelift would not work in Seward as it would collapse the dock. Terry suggested that the electric utility bills include a general reminder for citizens to obtain a dig permit since it was springtime and people would be wanting to work in their yards. Loren Leman reported an update on the Lowell Point Sewage Lagoon Project. The project was running slightly under budget and ahead of schedule. Other Reports, Announcements and Presentations Seward Community Health Center Annual Report by Executive Director Pat Linton. Rescheduled to the May 11, 2015 meeting. Council Travel Reports from Washington, D.C./Seattle, WA trip (Bardarson) and Kenai Peninsula Climate Conference(Casagranda). The report on the Kenai Peninsula Climate Conference was rescheduled to the May 11, 2015 meeting. PUBLIC HEARINGS—None UNFINISHED BUSINESS Items for Reconsideration Resolution 2015-028, Revising The Port And Harbor Tariff Regulations To Increase The Charge For Dishonored Checks, To Revise The Charges For Re-Blocking Vessels And For Boat Lift Work That Extends Beyond One Hour, And To Revise The Wharfage Rates For Boat Fuel To Conform To The Charges In The Annual Contract With The Fuel Dock Operator. (Motion to Reconsider filed by Vice Mayor Keil) Motion (Keil/Terry) Reconsider Approval of Resolution 2015-028 Motion to Reconsider Passed Yes: Keil,Butts,Darling,Terry,Bardarson No: Squires, Casagranda Original motion was back on the floor and open for discussion. Original Motion (Terry/Squires) Approve Resolution 2015-028 (Motion made on April 13, 2015) Liq City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page Hunt passed out a laydown of Travelift rates for other communities. Harbormaster Mack Funk reiterated the intent of the resolution. Funk said the proposed rates in Seward were competitive with other communities. Casagranda asked for a clarification on the rates and Funk said the rates quoted represented the first hour. She thought this rate comparison didn't hold up because the other communities quoted had other alternatives to offer, like a grid, which provided more affordable options. In response to Terry, Funk said these proposed rates had not gone through the Port And Commerce Advisory Board(PACAB) for review. Darling reconfirmed that her discussions with vessel owners reflected their desire for Seward to have a grid. Terry supported this resolution because it fairly and competitively charged users for this service. She echoed Casagranda's remarks that the city should continue to seek a grid. In the future she would appreciate PACAB having the opportunity to review. Main Motion Passed Yes: Butts,Darling,Terry,Keil,Bardarson No: Squires, Casagranda NEW BUSINESS Resolution 2015-037,Authorizing The City Manager To Enter Into A Construction Contract With Harmon Construction Inc. For The Purpose Of Constructing A New Northeast Harbor Fish Cleaning Station In The Amount Of $549,139, Authorizing A Contingency, And Appropriating Funds. Motion (Terry/Keil) Approve Resolution 2015-037 Motion to Amend (Darling/Casagranda) Amend Resolution 2015-037 by striking Section 2 in its entirety, striking "authorizing a contingency" in the title, and replacing the amount of "$103,006" with "$49,006" and striking "as follows: $54,000 to contingency account no. 11391- 0000-7807, and $49,006" in Section 3. Following council discussion of the pros and cons of having contingencies in contracts,Terry requested that council schedule a work session to discuss the topic of contingencies in general. Motion to Amend Failed Yes: Darling, Casagranda No: Keil,Terry,Butts, Squires, Bardarson � 0 City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page Funk said this project would enable the gut barge to be utilized more efficiently and cleanly. This project had gone out to bid previously, but was scaled back to make it more cost effective. There would be grant funds used to cover almost all of the costs related to this project. The project would take approximately one year to complete. Main Motion Passed Unanimous Resolution 2015-038, Authorizing The City Manager To Amend The Contract With CRW Engineering Group, LLC., For The North Seward Water Storage Tank& Pumping Facility, Phase II, To Add Building Modifications And An Exploratory Well, And Increasing The Contract By An Amount Not To Exceed $99,984, And Appropriating Funds. Motion (Keil/Casagranda) Approve Resolution 2015-038 Public Works Director W.C. Casey said the modifications included adding a small bathroom with a shower and an eye wash station, a stand-by generator, a higher security fence, and modified sewer lines, all as a result from feedback from the Alaska Department of Environmental Conservation (ADEC). In response to Squires, the toilet facility, generator and chemicals would all be housed separately and would be ventilated. Motion Passed Yes: Darling, Terry, Butts, Squires, Keil, Bardarson No: Casagranda Resolution 2015-039, Authorizing The City Manager To Enter Into A Contract With Southcentral Construction Inc. For An Amount Not To Exceed $4,658,210 For Construction Of The North Seward Water Storage Tank& Pumping Facility And Appropriating Funds. Motion (Terry/Casagranda) Approve Resolution 2015-039 In response to Casagranda, Casey said he structured the approach to this project to purposefully include Added Alternates. These Added Alternates included the restroom and the generator storage and were addressed in the bid package,but were not outlined in the contract itself. Casey projected this project would start in the first week of May. In response to Terry,Casey confirmed that all the changes presented in the design amendment for Resolution 2015-038 had already been included and were reflected in this resolution for construction. In response to Squires, Casey said the as-builts would be done by the engineers. In response to Darling,Casey said the only other aspect of this project that had yet to come to council for approval was engineering services in the form of construction support services. City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page In response to Butts, Casey said he had not been specifically instructed by the City Manager to not have legal review this contract,he did not seek legal review because he thought it was a fairly straightforward contract. Motion Passed Yes: Butts, Darlings, Terry, Keil, Squires, Bardarson No: Casagranda Resolution 2015-040,Amending The Legal Services Agreement Between The City Of Seward And The Law Firm Wohlforth, Brecht & Cartledge. Motion (Keil/Casagranda) Approve Resolution 2015-040 Hunt said the attorney fees had only been increased twice since the contract's inception in 1993, and this increase represented approximately a 2.5% increase. Terry requested the following comments be documented verbatim: "And then, again, anything in our policies and procedures,I believe contracts or amendments brought to council should be signed,and the City Attorney should know that better than anybody. So,you know,we need to see these signed in our packet. So you can remind him of that by having it in the minutes verbatim and you can send him those minutes." Motion Passed Unanimous Other New Business Items —None INFORMATIONAL ITEMS AND REPORTS 2015 City of Seward Financial Disclosure Forms Update. COUNCIL COMMENTS Terry welcomed Jackie Wilde as the new Executive Liaison. She clarified that the grant application for the Seward Community Health Center would come back to council for approval to submit. Council scheduled a work session to review the city policy on contract contingencies on May 12, 2015 at 12:00 p.m. in Council Chambers. Butts thanked and congratulated Dr.Matt Hall.He reminded everyone about the Pink Cheeks Triathlon this weekend. He cautioned citizens to watch out for bicyclists and runners. Casagranda said she had already noticed an influx of visitors in town. Squires requested a work session on infrastructure, including sewer, water lines, etc. He agreed to include the discussions starting in August with the budget sessions. He thanked everyone who came out for the American Legion convention last week. City of Seward,Alaska City Council Minutes April 27, 2015 Volume 39, Page Darling thanked everyone who worked hard to host the American Legion convention. She thanked Matt Hall.And she reminded everyone that the Crystal Symphony would be the first cruise ship here on May 7, 2015. Bardarson thanked the American Legion,and the City Clerk for sending out a reminder for meeting protocol. Keil said she would be out of state for the May 26, 2015 council meeting, and would be returning to Seward on June 7, 2015. CITIZEN COMMENTS Larry Harmon said contingencies didn't necessarily benefit the contractor,but they helped with project efficiencies because when a contingency was in place, it allowed more flexibility and a timelier response for the contractor. Tim McDonald mentioned the City Attorney contract,and suggested perhaps council should consider requiring the City Attorney to live in Seward. He thought the vessel wash down pad rates were based incorrectly on foot length of boats; rather, he thought it should be charged by time. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Hunt requested that Lila Hurst be recognized for her efforts with the animal shelter. He thanked Jackie and Scott Wilde for the work they did with the American Legion this weekend, and welcomed Jackie to City Hall. He added that administration was looking into some Outer Continental Shelf(OCS)opportunities for across the bay,as well as meeting with someone who was interested in buying and selling Seward water to freighters. In response to McDonald's comments, Hunt said the city charged moorage in the harbor by the foot,and was not aware if that was unfair or illegal, but it's what they did. Butts said he had over 25 years of experience in the maritime industry and that gave him the expertise to consider harbor rates and issues from a mariner's perspective even while he made decisions as a council member. EXECUTIVE SESSION Motion (Terry/Casagranda) Go Into Executive Session To Discuss Strategy For The Negotiations Of Contracts Regarding Power Purchase Agreements. Motion Passed Unanimous City Manager Jim Hunt, Electric Utilities Manager John Foutz, Administrative Assistant Rebekah Ivy and Contracting Officer Kevin Dunham from Power Systems Coordination and r73 City of Seward, Alaska City Council Minutes April 27, 2015 Volume 39, Page Switching Specialties were invited to stay for the executive session. Council recessed at 9:21 p.m. Council resumed at 9:26 p.m. Council went into executive session at 9:26 p.m. Council came out of executive session at 10:26 p.m. Motion (Keil/Terry) Direct staff to go out for Request For Proposals for electrical power. Motion Passed Unanimous ADJOURNMENT The meeting was adjourned at 10:28 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 1 � City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39,Page CALL TO ORDER The May 11, 2015 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Christy Terry David Squires Dale Butts Iris Darling comprising a quorum of the Council; and Ron Long,Assistant City Manager Johanna Kinney, City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald said there were swan nests at Mile 1 of Nash Road again this year. He said it looked like a promising fishing season as a large concentration of red salmon was spotted across the bay. McDonald stated he was looking forward to the City Manager's report on the sewage lagoon dredging project at Seward Marine Industrial Center(SMIC)and Lowell Point,as well as the status of the broken 330-Ton Travelift. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Vice Mayor Keil added Resolutions 2015-043 and 2015-044 to the consent agenda with no objection from council. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2015-041, Adopting The Revised 2014-15 Historic Preservation Commission Priorities. 1 City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39, Page Resolution 2015-043, Accepting A Grant In The Amount Of $974.40 From The Alaska Highway Safety Office For The Click It Or Ticket Campaign During The May 2015 Enforcement Period, And Appropriating Funds. Resolution 2015-044, Accepting A Grant In The Amount Of $793.80 From The Seward Community Foundation For The Seward Animal Shelter Pet Vaccine Clinic To Be Held In Late May 2015, And Appropriating Funds. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Special Olympics Law Enforcement Torch Run Day Proclamation. Matthew Morris, In Support Of Being Selected To Participate In The Annual DownUnder International Games As A Member Of The USA National Wrestling Team. Public Works Week Proclamation. Harbor Opening Weekend & Blessing of the Fleet Proclamation. Congratulations to Eddy Olesiuk, For Achieving The Triple Crown Award At The Alaska State Wrestling Tournament. Borough Assembly Report. Sue McClure brought thanks from the assembly for the wonderful dinner the city provided when they met in Seward last month. While in Seward, the Borough Assembly accepted cruise ship head tax funds to be distributed to Seward, and also appropriated$50,000 to Seward to create a new Comprehensive Plan. The assembly voted down the ordinance to repeal the seasonal exemption on non-prepared food, so it stayed the same. The mayor's budget was recently presented to the assembly and it was also online for the public to view. On May 19,2015,the borough annex in Seward would act as a center for Seward residents to call in to the assembly meeting and provide comments on the proposed borough budget. Currently, the mayor proposed giving$2 million more to the school district. McClure anticipated amendments to raise the school district funding to the cap. Last Tuesday, the assembly accepted approximately $850,000 from the State Department of Homeland Security for repairs from the 2012 flood, which affected Seward. The discussion on raising the sales tax cap from $500 to $1,000, after much discussion and amendments, was postponed to the July 7, 2015 meeting. June 2, 2015 was the second and likely final public hearing on the annual budget. City Manager's Report. Ron Long noted the following purchases were approved by the City Manager since the last council meeting: $21,600 to CMI for the lease of a mini-excavator for the Public Works Department, $10,592.18 to JWC Environmental for a remanufactured Muffin Monster grinder for the Wastewater Department, $13,335.00 to Potelcom for the Electric Department,$41,500 to Dryden and Larue for a recloser at the Spring Creek Substation,$29,261.48 to Valley Power Systems for materials for generator#5,and$19,700.00 to Storm Chasers,to replace outboard motors on the harbor boat. Long shared the latest news in the state budget was that the 1 c° City of Seward,Alaska City Council Minutes May 11,2015 Volume 39,Page cruise ship formula funding was back on the table and he hoped it would stay that way. Casagranda expressed concerns with city utility accounts and accounts with Alaska Waste for garbage services and had heard some residents were being threatened to have their electricity shut off for not paying their garbage. Butts asked for an update on the sewage lagoon dredging project, specifically at the SMIC lagoon. Long read a special report prepared by the Public Works Director. Last week, it was observed that a large amount of trash and debris on the beachfront by the SMIC sewage lagoon. Staff worked to clean up all debris with the assistance of Spring Creek Correctional Center crews. Public Works staff notified the State of Alaska Department of Environmental Conservation(DEC). DEC crews conducted a site visit shortly after being notified. It appeared the debris came from the nearby prison,whose staff had been very responsive with this process. Darling said she went to the site today and it was explained to her that Spring Creek Correctional Center didn't have a filter on their output going to the lagoon and Public Works worked very diligently to get that area cleaned. She hoped staff would work with the prison to get some kind of filter for this output. Butts hoped the entire tributary would be checked for debris. Terry said she was trying to understand how the water was discharged into the bay. Long said a lot of people were working on this and hoped to have a full report to council. Keil said she had been getting complaints that the city was now charging to use the RV dump station. Terry noted at the April 13,2015 meeting,council was told they would be given a resolution to consider formally stating the council's right to opt out of the federal grant the Seward Community Health Center (SCHC) was applying for, which could obligate the city to fund a large hospital improvement project.Long said he could bring something forward or wait until the SCHC board had more information on the work and research done on this potential project. Terry would like to see a simple resolution come forward first as to not complicate things. She was expecting this to come back to council, and felt it was a fail-safe they should have had in place. Squires agreed and said sooner rather than later would be better. Keil agreed something simple would be preferred. In response to Squires, Long confirmed the 330-Ton Travelift was repaired, per the manager's report. City Attorney's Report.Will Earnhart said his firm was busy with administration on legislation, contracts, and working on bond refinancing. Other Reports, Announcements and Presentations Council Travel Report from Council Member Casagranda at the Kenai Peninsula Climate Change Conference. Seward Community Health Center Annual Report by Executive Director Pat Linton. r City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39, Page PUBLIC HEARINGS Ordinances for Public Hearing and Enactment Ordinance 2015-002, Amending The Land Use Plan And The Rezoning Of Lot 4, Fort Raymond Subdivision, From Institutional(INS) To Auto Commercial (AC). Motion (Terry/Casagranda) Enact Ordinance 2015-002 Long noted a map of the proposed parcel in the packet. The Auto Commercial Zone was a better definition for what the Chamber of Commerce was operating in. Long stated it was a more consistent use and recommended enactment. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald noted this abutted the closed down Seward Air Force Recreation Camp, which was a large piece of property and could be a nice business district. They should make it all commercial, he felt. That piece of land was up in the air and wondered why this wasn't being discussed. No one else appeared to address the Council and the public hearing was closed. Motion Passed Unanimous UNFINISHED BUSINESS —None NEW BUSINESS Resolution 2015-042,Approving An Engineering Contract With Moffat&Nichol To Further Study The Feasibility Of A Public Crane Up To Five Ton In Size At Two Different Locations In The Small Boat Harbor For The Amount Of$9,862.00, And Appropriating Funds. Motion (Casagranda/Squires) Approve Resolution 2015-042 Harbormaster Mack Funk stated there was a lot of interest in the harbor obtaining a public crane. The city followed the council's direction by passage of Resolution 2015-002 by putting out a request for quotations to ascertain the feasibility of up to a five ton crane on either I Dock or the Travelift bulkhead. Squires was interested in what went out to quote. Funk stated the scope of work provided to council went out to all potential proposers. Darling said it seemed like everyone wanted a crane. She'd talked to several people that said a 2.5 ton crane would be way too small and she feared it would be a waste of money. A five ton 1 0 City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39,Page crane would be big enough for offloading fish,but not for the seine net fishermen. It was conveyed to her the city would benefit the most from an 8 ton crane. Motion (Casagranda/Darling) Amend Resolution 2015-042 to change all references from"up to a five ton crane" to "an eight ton crane". Squires said Resolution 2015-002 was proposed to council as considering an eight ton crane, and council amended that resolution to"up to"a five ton crane. The Port and Commerce Advisory Board(PACAB)recommended an eight ton crane. He thought an eight ton crane would be better across the bay,and a five ton crane would be helpful in the harbor,to at least get the city started and some needs met. Long said there were a number of private cranes in Seward. When Coastal Villages was asked what size crane they would want across the bay at SMIC, they said a five ton crane. This resolution was about the engineering and design services for a potential crane. One things they found that if they were to put it on the wooden I Dock, it would take a lot of work to support that crane, and the bigger the crane, the harder it would be to accommodate it. Earnhart cautioned the council to approve this amendment because the terms of the proposal were specific to the council resolution previously approved,which was for up to a five ton crane. If council wanted a feasibility study on an eight ton crane,they would need to fail this resolution and start the Request For Proposals process over. Earnhart didn't recommend council change the terms of the quotes that went out to the public at this point. Motion to Amend Failed Yes: Casagranda No: Darling, Keil, Butts, Squires, Terry, Bardarson Motion to Amend (Darling/Casagranda) Amend Resolution 2015-042, by changing the title of the resolution as follows: "TO FURTHER STUDY THE FEASIBILITY OF A FIVE TON PUBLIC CRANE UP-TO FIVE-TON IN SIZE..." Squires thought this limited the city's possibilities. It was just a study and it was just up to five tons in size. Casagranda thought this could be a waste of time,dealing with a study for a 2.5 ton crane,if that was deemed too small. In response to Butts,Darling said everyone she talked to said a 2.5 ton crane was a waste of money and a liability. Butts emphasized this was only to determine the feasibility of different sized cranes in two different locations. Casagranda stressed PACAB recommended studying the feasibility of up to an eight ton crane last year. They should remember they were looking for a crane for fishermen. (� City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39, Page Terry asked if the vendor broke down the deliverables, Funk said it was a lump sum only. Long said this resolution wouldn't eliminate the ability to construct an eight ton crane later down the road. Motion to Amend Failed Yes: Darling, Casagranda No: Keil,Terry,Butts, Squires,Bardarson Terry wanted to see this move forward, especially with the development about to happen at SMIC. Darling wanted to vote against as she didn't want to study obtaining a 2.5 ton crane. Main Motion Passed Yes: Terry, Butts, Squires, Bardarson No: Darling, Casagranda, Keil Council and staff took a moment to publicly thank Harbor Master Mack Funk for his work with the City of Seward and stated he would be missed. Other New Business Items Approval of the March 23,2015 and the April 13,2015 Regular City Council Meeting Minutes and the March 31, 2015 Special City Council Meeting Minutes. Motion (KeiVCasagranda) Approve the March 23,2015 and April 13, 2015 Regular City Council Meeting Minutes and the March 31, 2015 Special City Council Meeting Minutes. Motion to Amend (KeiVCasagranda) Amend the March 23, 2015 meeting minutes, changing the vote count on the motion to request that the Planning and Zoning Commission have a discussion on Resolution 2015-020 as a public hearing item on their April 7,2015 meeting agenda and make a recommendation to council from a unanimous vote count to Keil and Darling casting a no vote. Motion to Amend Approved Unanimous Consent Main Motion Approved Unanimous Direct the Planning and Zoning Commission to develop guidelines and a process for non-profit requests for city property. (Terry) Terry stated she brought this forward because request for land donations had not been an easy process lately. She provided a copy of Resolution 1994-101,which established the city's current land disposal process. She would like to refine the process of how go City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39,Page people came to the city for proposals regarding land disposal. She thought the Planning and Zoning Commission and the city administration could have a work session and work together to develop a more refined process by resolution. Terry wanted a clearer process for the citizens to navigate through and felt this would diminish concerns on how city disposal practices should be handled and any concerns about the process not being transparent. Squires supported this idea, and added that the process of the city receiving donated land should be also addressed and follow the same refined process. Keil suggested this be a council work session as they were the policy making body on this subject. She didn't know if directing this to the Planning and Zoning Commission was the right approach in establishing a policy. Terry agreed, it was just her initial thought to bring it to the Planning and Zoning Commission first,but she agreed with Keil's approach as well. INFORMATIONAL ITEMS AND REPORTS—None COUNCIL COMMENTS Keil congratulated Funk and wished him well in his future endeavors. Terry said she was proud of the two young wrestlers with Marathon Wresting that were honored tonight. She noted the Marathon Wrestling team got second place statewide as well. She thanked Deborah Altermatt, the American Legion, the Chamber of Commerce, and the Mariner's Memorial committee for a successful Harbor Opening Weekend. Butts thanked those who volunteered for the Pink Cheeks Triathlon. He applauded all of the wrestling coaches in the community and commented how neat it was to see that former wrestlers were coming back to the community to coach. Butts thanked Mack Funk for his work with the city. Casagranda was curious to see how things were going at the Jesse Lee Home and would like an update in the future. Squires said regarding the crane, it was important to note the council told the people they intended to do something,so it was important they follow through by passing the resolutions taking the action. He reminded council they weren't buying a crane right now; they were studying the feasibility of one. No other council had gotten this far and they should keep going. Darling said they had a great council and had the same thing in mind—moving forward. She noted council had a work session scheduled tomorrow to review the policies on contingencies for city projects and contracts. She hoped the public would participate. In her short time on the council, Darling stated she had enjoyed working with Funk. Bardarson hoped everyone had a Happy Mother's Day. She would be gone this weekend and would be sad to miss the harbor festivities. She thanked Funk for his many contributions to the harbor and to the city. g � City of Seward,Alaska City Council Minutes May 11, 2015 Volume 39,Page Long thanked Funk for being a great person to work with. He was a great mentor to his staff and a great representative of the city. Long reminded everyone Friday was "Wear Your Personal Floatation Device to Work"Day. CITIZEN COMMENTS Bruce Martin had a problem about the city turning off his electricity because he didn't pay his garbage bill. The garbage collection service was not being performed and he took his own garbage to the dump because the vendor quit doing the service. He would continue to take his garbage to the dump. Alaska Waste wouldn't let him make payments,either. Martin didn't think it was right that in turn they would turn off his electricity. He felt taken advantage of and added he was living on a limited income. Tim McDonald said he noticed the contingency letter issued tonight by Darling regarding tomorrow's work session. He didn't realize the city normally asked for a 10% contingency, he thought it was around 2%. Because of this, McDonald thought contingencies did need some oversight. He didn't want to muddy the waters over the crane,but he saw there was no engineering of it;the resolution approved was just for a feasibility study. Why didn't the city pay this vendor to engineer a crane pad. McDonald wondered why the city wasn't looking at other locations for a crane. He said most boats had small cranes already;the city didn't need a small crane. McDonald thought the city should pursue an 8 ton crane on T Dock. He would like to hear if there was a cost overrun on the sewage lagoon sludge removal and disposal contract. He was happy to hear Casagranda's report on her attendance at the recent climate change conference and was glad to hear people were looking for answers and having discussions,but noted it still came down to dependence on petroleum or coal. They needed to change that energy source and switch to hemp. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS —None ADJOURNMENT The meeting was adjourned at 9:26 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) ea, It 4 P AGENDA STATEMENT Meeting Date: May 26, 2015 From: Johanna Kinney, City Clerk dfr Agenda Item: Approval of Restaurant/Eating Public Convenience Liquor License# 5400 for The Cookery, LLC BACKGROUND&JUSTIFICATION: The City Council has an opportunity to object to the application of a Restaurant/Eating Public Convenience Liquor License#5400 for The Cookery, 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 renewal for these businesses. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license renewals, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non-objection to the application for the Restaurant/Eating Public Convenience Liquor License #5400 for The Cookery, LLC. W3 r 4OfStitt, 0 4�A5KP MEMORANDUM Date: May 26, 2015 To: Kris Erchinger Finance/Leases Kari Atwood Finance/Public Utilities Chief Tom Clemons Police Department Chief Eddie Athey Fire Department From: Johanna Kinney, City Clerk V RE: Verifying Compliance For The Application Of New Restaurant/Eating Public Convenience Liquor License 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 Cookery Type of License: Restaurant/Eating Public Convenience License Number: 5400 Department Status Initials � Finance/Leases e/� ' Finance/Utilities 0 k_ 1/0 Police Chief a 2 DA, Fire Chief KENAI PENINSULA BOROUGH /4=',. _ __ . eo IM 144 North Binkley St., Soldotna, Alaska 99669-7520 /z : ; 1 1-800-478-4441, Ext. 2160 • 907-714-2160 • Fax 907-714-2388(W I I www.kpb.us • assemblyclerk @kpb.us _i A u H;$E D 19,4 Vir RECEIVED JOHNI BLANKENSHIP, MMC BOROUGH CLERK May 20, 2015 MAY 2 0 2015 OFFICE OF THE Ms. Sarah Oates CITY CLERK Records & Licensing Supervisor Alcoholic Beverage Control Board 2400 Viking Drive Anchorage,AK 99501-1768 RE: Non-Objection of New License Application Business Name The Cookery License Type • Restaurant/Eating Place-Public Convenience License Location • City of Seward License No. • 5400 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, Johni Blankenship, MMC Borough Clerk JB/klr cc: City of Seward Applicant KPB Finance Department File D 5 of rite. Department of Commerce, Community, %%ye,, THE STATE P � Y� �� of and Economic Development F � 4 ALASKA ALCOHOLIC BEVERAGE CONTROL BOARD }-I'I.o! 7-147 GOVERNOR BILL WALKER �� 550 W 7'h Avenue Ste. 1600 ALAS$ Anchorage,Alaska 99501 Main:907.269.0350 TDD:907.465.5437 Fax:907.334.2285 May 18,2015 City of Seward Attn: Brenda Ballou&Johanna Kinney,City Clerks VIA Email:bballou(lii cityofseward.net jkinney @cityofseward.net Cc: joanne(aiborough.kenai.ak.us jblankenshipna,borough.kenai.ak.us kring(aiborough.kenai.ak.us The Cookery, LLC—Restaurant/Eating Place-Public Convenience#5400 DBA The Cookery New Application ❑ Transfer of Ownership ❑ Transfer of Location Nlyt Restaurant Designation Permit ❑ DBA Name Change We have received an application for the above listed licenses (see 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 hoard 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. `r' 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, Ja a Sawyer Business Registration so er 907-269-0359 Jane.sawyer@alaska.gov State of Alaska Alcoholic Beverage Control Board Date of Notice:May 18,2015 Application Type: NEW xx TRANSFER Ownership Location Name Change Governing Body: City of Seward Community Councils: None License #: 5400 License Type: Restaurant/Eating Place-Public Convenience D.B.A.: The Cookery Licensee/Applicant: The Cookery,L.I.0 Physical Location: 209&211 5th Avenue,Seward,AK 99664 Mail Address: PO Box 1068,Seward,AK 99664 Telephone #: 907-362-7893 EIN: 47-3150293 Corp/LLC Agent: Address Phone Date and State of Good Incorporation standing? Kevin&Anastasia Lane PO Box 1068 907-362-7893 02/16/15 Yes Seward,AK 99664 Please note:the Members/Officers/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 (%) Kevin Lane Wiggit 517 6th Avenue 907-362-7893 SO Seward,AK 99664 Anastasia Lane 517 6th Avenue 907-362-7893 50 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 78 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(6),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 04.11.400(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, Tan J wy Business Registration Examiner 907-269-0359 Jane.sawyer@alaska.gov go, Alcoholic Beverage Control Board New Liquor License (907)269-0350 2400 Viking Drive Fax:(907)334-2285 Anchorage,AK 99501 http://commerce.alaska.gov/dnn/abc/Home.aspx License is: or Full Year OR ❑ Seasonal List Dates of Operation: FEES SECTION A-LICENSE INFORMATION Office Use: License Type: Statute Reference License Fee: License Year: Sec.04.11.1 c $ (t'C` Office Use: &S\cut (�` '�j ` Filing Fee: $100.00 License#: S /00 Rest.Desig.Permit Fee: $ Local Governing Body:(City,Borough or Unorganized) Community Council Name(s)&Mailing Address: Fingerprint: $ (�•5L.: (S49.75 per person) /y k Y CL . Name of Applicant I- t6-1t (L -vr(�dKeig6 4 TOTAL 4 St-t4 '� (Corp/LLC/LP/LLP/IndividualJPartnership): Doing Business As(Business Name): Business Telephone Number: qc� • tr) IV(3 `[ Fax Number: Mailing Address: Street Address or Location of Premises: Email Address: 'T U<"'lc to(0 �C,�(+Jil 5tf`d�vt �;-•Lccc�-ojr,cc_� �.i1c+• City,State,Zip: `')l t• c i Ak 44fe-,( �_.zfi - 1 ((tuff.( SECTION B-PREMISES TO BE LICENSED Distance to closest school Distance measured under: ❑ Premises is GREATER than 50 miles from the boundaries of an grounds: ❑AS 04.11.410 OR incorporated city,borough,or unified municipality. ❑Local ordinance No. ❑ Premises is LESS than 50 miles from the boundaries of an kincorporated city,borough,or unified municipality. Distance to closest church: Distance measured under: 781 Not applicable ©AS 04.11.410 OR ❑Local ordinance No. 1 ❑ Plans submitted to Fire Marshall(required for new&proposed Premises to be licensed is: buildings) ❑Proposed building ❑ Diagram of premises attached Li/Existing facility ❑New building New Application Page 1 of 3 rev.1/26/15 qc Alcoholic Beverage Control Board New Liquor License (907)269-0350 2400 Viking Drive Fax:(907)334-2285 Anchorage,AK 99501 http l/commerce.alaska.gov/dnn/abc/Home.aspx SECTION C—LICENSEE INFORMATION 1. 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 59.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 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: 11A-C- Cocky LI.C_ old.? 3(v; —1b4' Co r a Mailing Address:, City: State: Zip eo)c to 116..6'( Name,Mailing Address and Telephone Number of Registered Agent: Date of Incorporation OR State of Incorporation:p �L Certification with DCED: 4 Avt2�?4L5 a Lit - e "MO(lc A Is the Entity in"Good Standing"with the Alaska Division of Corporations? ®Yes ❑No 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 Shareholder/Member with at least 10%) Name Title % Home Address&Telephone Number Work Telephone Date of Birth Number r1l AK44 6" 4704 3(.d-:%S3 Jq�./��-S-E� (n 717 bTr,. Ayt c�� a= AK .74441' qo 3 - b`r 3 !� 9fa' Lac�'iC C LJ�1 C'Y l 0 NOTE:If you need additional space,please attach a separate sheet. New Application Page 2 of 3 rev.I/3I14 qI Alcoholic Beverage Control Board New Liquor License (907)269-0350 2400 Viking Drive Fax:(907)334-2285 Anchorage,AK 99501 http://commerce.alaskajov/dnrr/abc/Home.aspx SECTION E-OWNERSHIP INFORMATION-SOLE PROPRIETORSHIP(INDIVIDUAL OWNER&SPOUSE) Individual Licensees/Affiliates(The ABC Board defines an"Affiliate"as the spouse or significant other of a licensee. Each Affiliate must be listed.) Name: Applicant ❑ Name: Applicant ❑ Address: Affiliate ❑ Address: Affiliate ❑ Date of Birth: Date of Birth: Home Phone: Home Phone: 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. • 1 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 oat 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 04.11.450, no person other than the licensee(s)has any direct or indirect financial interest in the licensed business. • I agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. Signature of Licensee(s) Signature of Licensees) Signature f� Si /J ,i,' .�j Signature Signature Name&Title(Please Print) Nrie&Title(Please Print) t k.4- Le Dwvte rr- . a,Sicas✓a-,v. lei (9 e-r Su sib cribed and sworn to before me this Subscribed and sworn to before me this N Pu 'c in and for the State of ►sk ■ Notary Pu 'c in and for the State of 414,5k-e( My commission expires: v�/�E r ' My commission expires: c.92 /26 /IQ At1044.461I 4 N�,• hrrvr��..� Ar01, A. sic: __ �5. 4t: 0 ALA',t. liiii11S111� New Application Page 3 of 3 rev.1/26/15 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. '[VO ry�j� License Number:_ 5`"i Type: V\C., VA CJ—?U j�t C.Glow � This application is for designation of premises where: (Please check the appropriate items below) 1. X Bona fide restaurant pursuant to 3 MC 304.305&3 AAC 304.715-794. 2. _, 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. Persons between 16—20 years of age may be employed. '(See note below) Licensee's Name: CCCYe+r'( I..LC Name of Business: I (c c c-Z v`( Business Address: )t6t c414 �� City: j C.LilCLxr..A 1. Hours of operation l to (DVv"& . Telephone Number. �" -'Q59 2. Have police been called to your premises for any reason? [ ]Yes [>No (If you answered yes, please explain below). 3. *Duties of employment: IC'(0(e.; IJi;( wr 4. Are video games available to the public on your premises? [ ]Yes pi,,No 5. Do you provide live entertainment,such as live music,pool tables, karaoke,dancing,sports or pin-ball? [ ]Yes (>No 6. How is food served? .Table Service [ ]Buffett Service [ ]Counter Service [ ]Other 7. Is an owner, manager or supervisor 21 years of age or older always present during business hours? bc],Yes [ ]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. **Please attach additional sheets of paper if more space is needed to describe food service,entertainment,etc. Licensee Sig .to = Local Governing Body Approval Subscribed and sworn to before me this /5 day of 11.4-- / 2� G, Date Notary Public in and for Alaska My Commission expires; l / / 4 // Sp 1 Director,ABC Board STATE OF ALASKA Date Rev.03172014 NOTARY PUBLIC - ' '_ Michael Cassel My Commission Expires:November 19,2018 q3 STATE OF ALASKA ALCOHOL BEVERAGE CONTROL BOARD Licensed Premises Diagram INSTRUCTIONS: Draw a detailed floor plan of your present or proposed licensed premises on the graph below: show all entrances and exits,and _all fixtures such as tables,booths,games,counters,bars,coolers.stages,etc. DBA: 1e CC IN Y PREMISES LOCATION: )OC( yve ceLJctsr4 AK---ct' ( Indicate scale by x after appropriate statement or show length and width of premises. SCALE A: ?< I SQ.*.4 FT. SCALE B: 1 SQ.= 1 FT. Length and width of premises in feet: Outline the area to be designated for sale,service,storage,and consumption of alcoholic beverages in red. DO NOT USE BLUE INK OR PENCIL ON THIS DIAGRAM. 1iIIII... a����i•ia +!������ + 7 t, errt'CI RPM a• u i/►11'1 N .i1i ! !J4tL_ 7411 ,A, ti , _ i 4 , II d ' 11 1 1 1111 isigeorgyir.iii ... _ - ......., iiii ll liliflhlli . ..IMINIBINIIiiiiiMail Revised 6/16/06 GH Cookery Menu Sample Snacks Spiced nuts Crock of "Refrigerator" Pickles Bread Service (selection changes daily) Small Plates Fresh Alaskan Oysters on the Half Shell* (raw) with spiced melon mignonette Broiled Oysters with Brie, Corn Crumbs and House Hot sauce Popcorn "nachos", aged cheddar, fried garlic, house hot sauce Cheese Board with accompaniments (changes often) Roasted Bone Marrow, Parsley and arugula salad, crostini Larger Plates Broiled, local black cod, spicy kale, soy marinated shiitake "Meatloaf" du Jour, pommes puree, seasonal vegetables Pan roasted halibut, olive/tarragon puree, fingerling potatoes, asparagus Braised beef short rib and mushroom "pot pie" Crispy pork belly, spiced apples, parsnips, five spice jus Dessert Framboise Float Carrot Cake Pancakes, Cream Cheese Ice Cream, Rum Raisin Caramel Peanut butter and chocolate pot du crème, glazed raspberries, chocolate tuille *Consuming raw or undercooked meats, poultry, seafood,shellfish, or eggs may increase your risk of foodborne illness. Ic5 PROCLAMATION WHEREAS, those who serve in hospitals have a major responsibility to the welfare of our community; and WHEREAS, Seward's physicians and staff are dedicated to providing outstanding medical care to sick and injured patients with compassion, respect, and innovation; and WHEREAS, our hospital also serves as an invaluable resource for health education, community outreach, community partnerships, economic stimulation; and WHEREAS, hospitals are an economic mainstay, providing millions of jobs across the United States; and WHEREAS, the City of Seward is proud to celebrate our hospital and the men and women who support the health of our community through dedication and compassionate care. NOW, THEREFORE, I,Jean Bardarson, Mayor of the City of Seward, Alaska, do hereby proclaim May 10-16, 2015 as Hospital Week in Seward, Alaska and encourage the community to take this week as an opportunity to thank all of the dedicated individuals - physicians, nurses, therapists, engineers, food service workers, volunteers, administrators and so many more - for their invaluable contributions. Dated this 1e day of May, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor Where Miracles (01Tel-rafifiert &-eAlP Da? 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