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HomeMy WebLinkAbout04242017 City Council PacketSeward City Council Agenda Packet April 24, 2017 City Council Chambers Beginning at 7: 00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA I � { Please silence all cellular hones during the meetin p g g} April 24, 2017 7:00 p.m. Council Chambers Jean Bardarson 1. CALL TO ORDER Mayor 2. PLEDGE OF ALLEGIANCE Term Expires 2017 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT Marianna Keil THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Vice Mayor [Those who have signed in will be given the first opportunity to Term Expires 2018 speak. Time is 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 2018 asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is David Squires returned to the Regular Agenda] Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2017 A. Proclamations and Awards Sue McClure Council Member 1. Retirement of Patrick Linton, Executive Director of Seward Term Expires 2017 Community Health Center............................................Pg. 3 2. Retirement of Flip Foldager, City of Seward Harbor Deborah Altermatt Employee........................................................................Pg. 4 Council Member Term Expires 2017 B. Chamber of Commerce Report C. City Manager Report............................................................Pg. 5 Erik Slater D. Other Reports and Presentations Council Member Term Expires 2018 1. Seward Community Health Center Report. 2. Kenai Peninsula Economic Development District Quarterly James Hunt Report by Tim Dillon. City Manager Johanna Kinney City Clerk Will Earnhart City Attorney City of Seward, Alaska Council Agenda April 24, 2017 Page I 7. PUBLIC HEARINGS 1. Resolution 2017-023, Authorizing The City Manager To Enter Into A Consent Assignment To Harbour Holdings, LLC To The Lease Agreement 97-105 With Tom Tougas, For Lot 8, Block 6, Seward Small Boat Harbor Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2000-19, Seward Recording District, Third Judicial District, State Of Alaska, And Harbour Holdings, LLC Request For A New 33 Year Lease.........................................................................................................................Pg. 26 2. Resolution 2017-024, Resolution 2017-024, Increasing The Mill Rate From 3.12 Mills To 3.84 Mills To Account For Costs Associated With The Issuance Of $3 Million In General Obligation Bonds For Road Improvements In Accordance With Resolution 2017-003...............................................................................................Pg. 62 8. UNFINISHED BUSINESS — None 9. NEW BUSINESS A. Resolutions *1. Resolution 2017-025, Adopting The Port And Commerce Advisory Board Priorities From January 2017 To December 2017............................................................... Pg. 71 *2. Resolution 2017-026, Adopting The Planning And Zoning Commission Priorities From April 2017 To April 2018.......................................................................... Pg. 76 3. Resolution 2017-027, Authorizing The City Manager To Enter Into A Purchase Agreement With Arctic Elevator Company LLC, For Modernization Of The City Hall Elevator In The Amount Of $86,300.00 And Appropriating Funds......................Pg. 83 B. Other New Business Items *1. Non -objection to the renewal of Package Store Liquor License 94334 for the Oaken Keg92728........................................................................................... Pg. 86 2. Discuss ideas for Celebrating the 501h Anniversary of the Seward-Obihiro Sister CityRelationship.........................................................................................Pg. 95 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. On -going City Project and Goal List................................................................... Pg. 102 B. Annual Financial Disclosure Statement Submission Report...............................Pg. 103 It. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda April 24, 2017 Page 2 PRO CLAMATI ON �COMMUNIT`,f HEALTH LuuCENTER WHEREAS, for the past three years, Patrick Linton has been the Executive Director for the Seward Community Health Center; and WHEREAS, Pat has undertaken the enormous task of getting the clinic up and running, hiring and training employees, educating the board to effectively support the clinic's operations, and keeping the clinic in compliance with federal regulations; and WHEREAS, Pat is known for being an excellent leader; his staff and the board both admire and respect him, and everyone appreciates his empowering and inclusive methods, and WHEREAS, Pat has set the highest personal and professional standards for himself, and consistently lives by these principles, exemplifying through his own actions his leadership abilities; and WHEREAS, Pat is known to be an excellent listener and a strong collaborator, as well as an undeniably trustworthy, reliable, competent, and genuinely nice person. NOW, THEREFORE, I, Jean Bardarson, Mayor of the City of Seward, Alaska, do hereby thank Patrick Linton for his years of service and numerous contributions to the Seward community, and wish him all the best in his upcoming retirement. Dated this 24th Day of April, 2017 THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor "Heating, It turns out, has a lot to do with the heart. " Patrick Linton 3 4M 4W Ii it City Of Seward CERTIFICATE OF APPRECIATION PRESENTED TO FLIP FOLDAGER for 25 Years of Dedication to the City of Seward. 1IN!, Congratulations On Your Retirement, And Thank You For Your Many Years Of Devoted Service To Our Community! Presented on this 24`h day of April, 2017 Jean Bardarson, Mayor I 4 CITY OF SEWARD P.O. Box 167 Seward, AK 99664 MANAGER'S REPORT March 31, 2017 thru April 14, 2017 Jim Hunt, City Manager Telephone (907) 224-4047 Facsimile (907) 224-4038 The following purchase orders for between $10,000 and $50,000 have been approved by the City Manager since the last council meeting: None ADMINISTRATION • Attended the Chamber luncheon • SMIC weekly teleconferences • PACAB regular meeting and work session • R & M teleconference re added SMIC components (crane, floating dock, cathodic protection, Travelift expansion, wash pad heat), and fish plant outfall lines HARBOR • We had meetings with Hamilton Construction and R&M for the Breakwater project on 4/13/17 and 4/20/ 17. • Base and core rock are complete, the entire footprint of the breakwater is in place, and they are continuing to place primary A and B rock. • Barges are still going back and forth to Kodiak for more Armor rock. • SERVS training was conducted from April 17th to the 21st • Flip Foldager will be retiring from the Harbor on April 27, 2017 the harbor has started the hiring process for a Harbor Worker II position. • The Harbor has started the process for one new office staff. • The boat lift schedules for both sides of the bay have increased. • Have been working with PACAB on the South Harbor Uplands development, will have a resolution to council soon. • The Harbormaster attended a Tsunami workshop in Homer sponsored by the State. ELECTRIC • The Electric Department has entered all items into their new inventory system and is in the process of implementing the program before construction season is in full swing. • April generator testing went well and is running at full capacity. • The crew has been busy clearing and removing brush under/around the power lines in preparation for upcoming summer projects. • The most recent outages were caused by old wire past its life expectancy and failing equipment: 3/28 - wire failed on 5th and Monroe, 4/7 dated glass insulator broke in half and tripped the circuit. PARKS AND RECREATION • March Attendance: 1932 people signed -in for activities at Sports & Recreation Counter — AVTEC Highlight of main activities used —Wellness Room: 184; Weight Room: 181; Racquetball: 72; Open Gym/Basketball: 312; Sauna: 66; Rockwall: 64 5 • Sports and Rec Flea Market was held Sat, Apr 81h. This event proved to be a huge success with 30+ tables sold. The public is suggesting we should hold a Flea Market more than once a year. We are planning on another event this coming August. • The Easter Egg hunt on April 15th was amazing with over 500 kiddos special thanks to Dr. Moriarty, DDS, American Legion, TYC & SPRD • Out 31st Annual Diaper Derby was Sat, Apr 15; 10 am at the Sports and Rec (AVTEQ Gym for babies, newborn to 24 months. Best dancer, chubbiest legs, biggest eyes... • Pink Cheeks Triathlon is Sat, May 6 - 5K Run, 10K Bike and 600 YD Swim. Volunteers are needed, to register or volunteer for this triathlon go to www.runsi2nup.com • Super Saturday Cleanup Pick up bags at the AVTEC gym Sat, May 13th from 10 am to 4 pm. After the long winter season, everyone is invited to help clean up our town before the upcoming summer 0 season! Prizes will be awarded to those who pick up the most trash. 6 pm SPRD will host a free BBQ and awards ceremony at the Branson Pavilion for all participants. • Terry's Tires Bike Rodeo will be held at City Hall Sat, May 13th from loam to high noon. This is a free event for ages 11 and under. Helmet Junction (Sponsored by Shoreside Petroleum), chuck wagon (sponsored by the Seward Police Department), obstacle course, prizes and a free t-shirt to the 1st 75 participants • After School program is actively supporting 12-20 kids Monday — Friday • TYC outside cleanup has begun and is looking good. Snow is going away quickly and soon the court will be available for basketball. • Seward Community Foundation Grant was won by the TYC for Summer Camp STEM Programs and trips. $2,500.00. • Middle School Program has 10 + kids on Friday and Saturday nights. Activities involve on campus and off campus events. • Attendance continues to be in the 30's and a few days it's been in the 40's. We have been seeing a lot of new faces which is super exciting. • We are still keeping the kids active with hiking trips and use of the AVTEC gym and facilities. • We are now gearing up for more outdoor activities with the warmer weather around the corner. • Easter activities the week of Apr 10 - 15 included, stuffing plastic eggs, coloring and decorating hard boiled eggs, Easter dinner on Friday with ham, cheesy hash browns, veggie and rolls, and to conclude the week there was be a teen egg hunt and bon fire at Forest Acres Park on Saturday. • PM&C is getting geared up for the summer. As snow melts and water runs we are excited to see all of our parks and campgrounds come back to life. • We are continuing to prepare restrooms and campgrounds for opening and are looking forward to the improved efficiencies and amenities we are going to offer our restroom users this summer. • Boardwalk repairs are underway, as well as fencing and backstop repairs needed after our heavy snowfall this winter. We are working closely with the Anchorage Parks and Recreation Department who also had a backstop collapse this winter, to find a more appropriate backstop design for Alaska's climate. • Summer is in full swing in terms of seasonal employment. We have lined up a number of returning employees and a few fresh faces as well. We are looking forward to being fully staffed by June 1st, a rarity and blessing. PUBLIC WORKS • The tunnel work is winding down. They started slowly releasing water into the tunnel on April 12tn Diversion structures and piping is being removed and finishing work commencing. We were able to secure 80 cement eco-blocks from the project for future City projects. • Water, Wastewater Utilities: Crews are working on SMIC lift station pump and repairs. Our department had also had several locates and questions for services. • Streets are trying to keep up with potholes by using gravel for now. We will start using some cold mix soon. Street sweeping will also be starting up soon as we get ready for spring. Paving construction work could possibly start sometime late this month or early May. • The shop is doing numerous fixes and helping the street department. Snow tire swaps for all City vehicles is starting. • The City Hall elevator bids have been evaluated and are scheduled to go to Council for approval of award. 0 The Library had a pinhole fitting leak due to a manufacturing defect, it was stopped and repaired. LIBRARY & MUSEUM • January 2017 Library Stats- 3292 Joint Library Catalog Circulation; 544 Seward Joint Library Catalog Users; 533 Alaska Digital Library Circulation • February 2017 Statistics- 7516 Front Door Counter; 95 Museum Admission; 20 Programs; 3160 Joint Library Catalog Circulation; 519 Seward Joint Library Catalog Users; 482 Alaska Digital Library Circulation; 7 Passport Applications; 5 Notaries; 110 Room Uses; 8 Proctored Exams; 761 Public Computer Sessions • March 2017 Statistics-10717 Front Door Counter; 204 Museum Admission; 24 Programs; 3757 Joint Library Catalog Circulation; 609 Seward Joint Library Catalog Users; 717 Alaska Digital Library Circulation; 9 Passport Applications; 3 Notaries; 181 Room Uses; 10 Proctored Exams; 957 Public Computer Sessions • Don't forget, this is the last week for Amnesty Month at the Seward Community Library & Museum Don't let overdue, lost, or damaged items keep you away. Return overdue materials during the month of April and pay no late fees. Worried about lost or damaged materials? Come by and talk to us; we can work it out. Can't make it during our open hours? That's ok. We also forgive overdue fines on books returned in the book drop. • A new temporary exhibit titled "Seward and the First World War: 1917-1918" has been installed in the Museum. It examines the impact of World War I on Seward residents, and includes historic newspaper articles, photographs, and objects from the Resurrection Bay Historical Society collection and local historian Doug Capra. This exhibit will be on display through the summer season. We thank Mark Luttrell, Colleen Kelly, Dennis McLain, Dona Walker, and Doug Capra for volunteering their time for this exhibit. • Join us for a Weekend Writer's Workshop at the Seward Community Library & Museum author, Frank Soos. The workshop will be Friday, April 28th 6:00 PM- 8:00 PM, Saturday, April 29th, 10:00 AM-2:00 PM, and Sunday, April 30, 10:00 AM-2:00 PM. Contact (907)224-4010 or email libmus@cityofseward.net to sign up for this program. • Author Frank Soos will lead a book discussion on Becoming Earth by Eva Saulitis at 4:OOPM on Saturday, April 291h. Becoming Earth is a collection of essays published after Saulitis' death from breast cancer. Copies are available for check out at the library front desk. • The last Story Time of the season will be Friday, April 281h, at 10:30 AM in the Museum. The theme is "We Love Trees!" Join us for stories about plants and trees, and a look at the tree slice on exhibit. Story Time will resume next fall. • The Community Book Club discussion for Truth & Beauty: A Friendship by Ann Patchett will be Tuesday, May 2" d, at 6:30 PM. To place a hold on a copy, please contact us at libmus@cityofseward.net or (907)224-4082. • All six Library Museum staff members shared a ride to go to Anchorage for a Training Day on April, 6th to meet the staff and tour two libraries and two museums. Our first stop was the Wells Fargo Alaska Heritage Museum where we were given a tour of the museum, collections and art displayed throughout the building by Tom Bennett, Museum Curator/Manager, who also generously gifted us with acrylic displays and supplies for our museum. Our next stop was the Alaska Jewish Museum, which is currently closed to the public for a new exhibit installation, but was opened especially for us, by Leslie Fried, Curator, to tour, share ideas and talk about installing exhibits. Our first library stop was the Mountain View Branch Library, where Director Virginia McClure gave us a tour of their beautiful and welcoming space and we saw the exciting work they are doing with 3D printers in their community and discussed youth services. Our last stop was the Loussac Library, where Sherri Douglas, Assistant Director for Public Services, gave us a tour and helped us navigate the construction that is expected to be completed this summer and how each space is tailored to meet the needs of the community. Each institution we visited, and staff person we met, contributed to our knowledge and understanding of the work strive to do each day and inspired how we could improve the experience of and the services to our community members and visitors in our own spaces. We thank each of these institutions and their staff for making time for us and for their generosity of spirit. FINANCE • The audit will be wrapped up by the end of April. This year's audit was the smoothest and most efficient in many years. A big "thank you" to the Finance staff for their hard work and great preparation which allowed the auditors to shave some time off the field work. We are still awaiting data from the State of Alaska regarding required pension data, but the auditors are hoping to be able to present the audit to Council in May or early June. • The City completed the sale of $3 million in general obligation bonds to provide the funds for our road improvement project which we expect to begin this spring. The bonds were issued at a very favorable all -in interest rate of 3.54% and the Closing of the bond issue will take place on April 27a'. • Finance staff continues to coordinate the billing system impacts of the plan to switch out all of the electrical meters in our service area, to remote meter reading. We are excited about the project and hoping to make the switch -out seamless for our customers. The original plan to switch out the meters in May was not possible due to coordination challenges, so we are working with the Electric department and their contractors to find a time that will work best overall. At this point we are expecting a roll -out no earlier than September. • Reminder that the seasonal utility rates will go into effect on the billing that goes out in May 0 Study of a Proposed Hydroelectric Project on the North Fork of the Snow River Snow River Hydroelectric Project o 12.5 25 50 Wes Figure A2-1: Project Location Map 11 *,�,ustainaDie Renewable Reduces COz emissions Dispatchable Long -term rate stability �j 12 %..I IUSCIC.I I GICC.II IC. /1»VC.IdIIVI Fuel Requirements (Natural Gas and Hydro Equivalent) 12 10 i 2 0 2o18 2022 2026 2030 2034 2038 Year 2042 o Unmet I Snow River Natural Gas Supply Existing Renewable Fuel Needed 13 VdJ-I II I=u — / V/o Southcentral Power Project Beluga Hydroelectric- zo% Cooper Lake Power Project Eklutna Power Project Bradley Lake Power Project Wind — 4% Fire Island 5 14 Assurance of adequate generation and fuelresources Chugach uses Planning Integrated Resource Evaluation of resource options bong -term planning zo+year horizon Requires information on potential options 15 J 1 ! has been recognized for decades USGS (1960ys) AEA (198oys) 1 Basin has attractive hydro project characteristics Water flow Reservoir storage potential Elevation difference Near existing infrastructure Port, highway, railroad, transmission line 16 Township -Range ISection lQuarter Seetlom Township -Range I Section I Quarter Sectlons 1s.e90 Aces 15,957 Acres 133 Acres T2N. R1E, SM Sae. 1 NE, NW. BE. SW T3N, R1 E. SM Sec.34 NE. BE, SW T2N, Ri E. SM Sea 2 NE, NW, BE. SW T3N. R1 E, SM SBC. 35 NE, NW, BE, SW T2N, R1E, SM Sec. 3 NE. NW. BE. SW T3N. R7 E, SM Sec. 36 NE. NW, BE, SW T2N, R1E, SM Sec.4 NE. NW. BE. SW T3N. R2E, SM Sec. 14 NW. BE. SW T2N RiE SM Sec 5 NE NW SE SW T3N R2E SM Be. 15 NE BE SW T2N, RlE, SM Sec.7 NE, NW. BE, SW T3N, R2E, SM Sea 21 NE, BE, SW Z , T2N, R1E,. SM Sec.8 NE. NW. BE. SW T3N. R2E, SM Sec. 22 NE. NW BE, SW sE T2N. R1E, SM Sea9 NE, NW, BE. SW 1-3N. R2E, SM Sec.23 NE. NW, BE SW T2N, R1E, SM Sec. 10 NE, NW, SW T3N, R2E, SM Sac, 26 NE, NW T2N, R1E, SM Sec. 11 NE, NW T3N, R2E, SM Sec. 27 N£, NW, SE, SW K T2N, R1E, SM Sec. 12 NW T3N, R2E, SM Sea 28 NE, NW, SE SW ' F23 T2N, R1E, SM Sec. IS NE, NW T3N, R2E, SM Sec.29 NE, NW, BE, SW F T2N, R1E, SM Sec. 17 NE. NW MN, R2E, SM Sec. 31 NE, NW, BE, SW 72N, R1E, SM Sec, 18 NE, NW T3N, R2E. SM Sec.32 NE, NW, BE SW T2N. R2E, SM See.5 NE, NW, SW T3N. R2E.SM Sec, 33 NE. NW BE, SW - - - -- - -'- T2N, R2E, SM Sec.6 NE, NW, BE, SW M. R2E. SM Sec. 34 NW - SM-Seward Meridian I g 35 < 31 ,36 T3N-R1 E �t Legend r � 2 1 6 Project Boundary Powernwse 1 2' Z.�+' � I ! .r ,rt ® Snow River Reservoir 11280 ft) Powerhouse 2 H H ( ,+ _ - •' _ --1 a� Seward Highway mm Storage Dam (2A, 213, 2G) nl �• $ w4or t FW — Snow River Ma -tern i Penstock 1 11- Nn I Nt , ryNn 11 "-s W —• - Existing Transmission Lines = Power T—I1 ' 1 8 9 C, Ice Mass ----- Powerhouse 1 Access Road I RRw Lake/Pond - •- Transmission Line 1 041 Property Penstock 2 -.AM �. r,ys4-• -_ _ _ _. __ Federal Power Tunnal2 vw ur. 16 rn I 171 .va' Non-rederal --'-' Powerhouse 2 Access Road Vi -A, Auxiliary Dam •-•- Transmi/ssio�n Line�2 Snow River Hydroelectric Project Exhibit 6: Proposed Boundary and Land Ownership a 1.25 2.6 5 Mlles Q ,r 0 17 Prnnnspe- $a a Ab Ab j p Legend 1� Q Project Boundary Storage Dam (2A, 2B, 2C) t� Snow River Reservoir (1280ft) rs Penstock 1 Seward Highway Power Tunnel 1 Snow River Mainstem Powerhouse 1 Access Road —• Ebsting Transmission lines .—�. Transmission Line 1 .�._.__._,_.�.�,�,_,_.�.�...._._.—. ,� Ice Mass Penstock 2 a LakefPond r: Power Tunnel + Auxiliary Dam ...+. Powerhouse 2 Access Road v;. ^ and Dam Construction Access }� Powerhouse 1 Road, both Alternatives 15 Powerhouse 2 Transmission Line 2 r ✓'�—� ,�} ,gyp 20 ft contours Snow River H roelectric Project�"� Facilities A os i les Exhibit 5: G .eral Locations of Proposed Darn and Power Production Related i I I I I I-i WJ Snow River Potential Hydroelectric Development Land Ownership Remi Penineule ea rough Land Ownership '- - FEDERAL NATIVE ww.« IM PRIVATE 10 19 secure rtK� rreiiminary rermit Provides 3 years to study concept Can be extended FERC License Application Supported by studies, engineering, proposed protection, mitigation and enhancement measures FERC Review Comprehensive Dam safety Conditions Construction 20 kan you license it: Can you finance it? Can you build it? Does it make financial sense? 12 21 Preliminary rermit License application Construction 3-5 rears z-3 Years 3 Years 13 22 i nose tnat nave Deen mace: Secure a Preliminary Permit Study the potential of the concept Fund 2017 activities Those that have not been made: Continue studying the concept past 2017 Whether to submit a license application Whether to build the project 23 unaerstano vorest service wim ano scenic classifications Gather existing resource information Field reconnaissance/site evaluation Evaluate effects of jokulhlaups Identify information needs 15 24 Questions? Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-023 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSENT ASSIGNMENT TO HARBOUR HOLDINGS, LLC TO THE LEASE AGREEMENT 97-105 WITH TOM TOUGAS, FOR LOT 8, BLOCK 6, SEWARD SMALL BOAT HARBOR SUBDIVISION, CITY OF SEWARD, KENAI PENINSULA BOROUGH PLAT 2000-19, SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, AND HARBOUR HOLDINGS, LLC REQUEST FOR A NEW 33 YEAR LEASE WHEREAS, Tom Tougas ("Lessee") has requested an assignment to Harbour Holdings, LLC of his existing lease agreement with the City of Seward for 1,306 square feet, more or less, Lot 8, Block 6, City of Seward, Seward Small Boat Harbor Subdivision, Kenai Peninsula Borough, Plat No. 2000-19 recorded in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, Article 14 of the Lease provides that the Lessee shall have the right to assign the lease upon findings by the Council that use is: (a) Compatible with the use of adjacent lands (b) A permitted use under existing zoning regulations and comprehensive land use plan (c) Found to be in the public interest; and WHEREAS, the lease site will continue to be utilized as a retail shop and is consistent with current zoning and land use regulations; and WHEREAS, the current lease has been in effect since September 24, 1997; and WHEREAS, the current lease expires on September 23, 2017; and WHEREAS, Harbour Holdings, LLC is requesting a new 33 year lease, to include two thirty three year extensions, each of which must be brought before the then City Council for approval; and WHEREAS, the new lease is modeled on the City's current standard lease agreements, replacing outdated language and incorporating standard current lease language into the new lease. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: 26 CITY OF SEWARD, ALASKA RESOLUTION 2017-023 Section 1. The City Manager is hereby authorized to enter into Consent to Lease Assignment to Harbour Holdings, LLC, in substantially the form presented at this meeting. Section 2. The recitals set forth above are incorporated herein by reference and adopted as findings of the City Council. For the reasons stated, an assignment to Harbour Holdings, LLC, in the form presented at this meeting is found to be in the public interest. Section 3. The City Manager is hereby authorized to execute a new lease with Harbor Holdings LLC, in substantially the form as presented at this meeting Section 4. This resolution shall take effect 30 days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of April, 2017. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor 27 Agenda Statement Meeting Date: April 24, 2017 To: City Council Through: Jim Hunt, City Mana` c From: Norm Regis, Harbormaster Agenda Item: Consent to Assignment of Lease 97-105 from Tom Tougas to Harbour Holdings, LLC, also Harbour Holdings LLC, is requesting a new Thirtv Three year lease at the Seward Boat Harbor, with two additional thirty three year options to extend with the then council's approval BACKGROUND & JUSTIFICATION: Tom Tougas currently has Lease 97-105 for 1,306 feet more or less of Lot 8 Block 6 Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No.2000-19 in Seward Recording District, Third Judicial District. State of Alaska. Tom Tougas has requested approval to assign the lease to Harbour Holdings, LLC. which will continue to use the leased land for a retail shop. Article 14 of the lease allows lease assignments upon findings by Council that use is: (a) Compatible with the use of adjacent lands (b) A permitted use under existing zoning regulations and comprehensive land use plan (c) Found to be in the public interest. Harbour Holdings, LLC would like to request a new 33 year lease with two optional 33 year extensions which must be approved by the City Council at the time the option is exercised, by resolution. This would terminate Lease 97-105 and establish a new lease using the attached lease agreement. The current lease will cxpire on September 23". 201 T INTENT: To approve a Consent of Lease Assignment from Tom Tougas to Harbour Holdings. LLC and to authorize the City Manager to execute a new lease between the City of Seward and Harbour Holdings, LLC for Lot 8. Block 6, Seward Small Boat Harbor Subdivision. CONSISTENCY CHECKLIST: Yes 'No NIA Comprehensive Plan (document source here): Create a thriving port of I —F 1. Seward through harbor improvements, infrastructure expansion, and X implementation of management plans (page 23). Strategic Plan (document source here): Attract New Industry: Develop an aggressive marketing campaign which highlights the �`' diverse resources, and quality of life that make Seward a great place to X live and establish a business or industry. (Pave 5) W 3. Other (list): FISCAL NOTE: The lease rate is $4,824.56 reflecting 4,800.00 annually per the 2015 appraisal, adjusted for inflation. With a new lease; this parcel will now be subject to yearly CPI adjustments. This parcel will also be reappraised in 2020. Approved by Finance Department: ATTORNEY REVIEW: Yes X No RECOMMENDATION: Council approves Resolution 2017- 023 approving the assignment of lease number 97-105 with Tom Tougas to Harbour Holdings, LLC, and approving a new 33 year lease between the City of Seward and Harbour Holdings, LLC for Lot 8, Block 6, Seward Small Boat Harbor Subdivision, Citv of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third 3udicial District, State of Alaska. 29 ASSIGNMENT OF LEASE RE- L13-108 THIS AGREEMENT made and entered into between Tom Tougas, Lessee, P.O. Box 1571, Seward, Alaska 99664, hereinafter called "ASSIGNOR", and Harbor Holdings, LLC P.O. Box 2292 Seward, Alaska 99664 hereinafter called "ASSIGNEE" with the consent of the City of Seward, hereinafter referred to as "Landlord". WHEREAS, by Lease dated September 24, 1997 made between THE CITY OF SEWARD, ALASKA, "LESSOR", a home rule municipal corporation, organized and existing under the laws of the State of Alaska, amended by a recorded lease assignment dated August 10. 2005 (2005-001241-0); Seward Recording District, Third Judicial District, State of Alaska. The premises, described as, Lot 8, Block 6, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No_2000-19 in Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 1306 square feet, more or less, were leased to ASSIGNOR subject to the covenants, conditions and stipulations therein. WITNESSETH, that for valuable consideration paid by the ASSIGNEE to the ASSIGNOR, receipt whereof is hereby acknowledged, the ASSIGNOR assigns to the ASSIGNEE the premises described in said lease, as amended, for the unexpired term of said lease, subject to the payment of rents and performances of the covenants, conditions and stipulations therein. ASSIGNEE covenants during the continuance of said term to pay the rents reserved and to perform the covenants, conditions, and stipulations in said lease, as amended, to be performed by the ASSIGNOR and to keep indemnified the ASSIGNOR against all actions, claims, and demands whatsoever in respect to the said rents, covenants, conditions, and stipulations, or anything relating thereto. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the dates indicated. ASSIGNOR: ASSIGNEE: zip/ 3 z i Date: Date: 30 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this e� 1 day of M0,01, 2017, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to be Tom Tougas the corporation that executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public AMANITA MAGNUSON State of Alaska My Commission Expires Jun 19. 2017 STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT Notary Public in an for Alaska My Commission Expires: ()0 (Ae. 19 , `do X-] THIS IS TO CERTIFY that on this 3, t day of PW' , 2017, personally appeared before me the undersigned, a Notary Public in and for the State of Alaska, to me known to be Joseph Tougas the corporation that executed the foregoing instrument and acknowledged to me the said instrument to be the free and voluntary act and deed, for the uses and purposes therein mentioned of the corporation and on oath stated that he is authorized to execute said instrument on behalf of the corporation. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public AMANOA MAGNUSON State of Alaska My Commission Expires Jun 19, 2017 m-on Notary Public in and for Alaska My Commission Expires: '3one �C�, ot� 31 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and Harbour Holdings, LLC Effective Date: 32 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 Property Accepted................................................................................................... 1 1.4 Permits.................................................................................................................... 2 1.5 Platting....................................................................................................................2 ARTICLE 2 - LEASE TERM...................................................................................................... 3 2.1 Lease Term.............................................................................................................. 3 ARTICLE 3 - RENTAL RATE................................................................................................... 3 3.1 Initial Rental Rate................................................................................................... 3 3.2 Rental Adjustments.................................................................................................. 3 3.3 Procedure for Rental Adjustment............................................................................ 3 3.4 Effect of Late Appraisal by CITY............................................................................ 4 3.5 Appraisal by LESSEE............................................................................................. 4 3.6 Effective Date of Adjusted Rental Rate................................................................... 5 3.7 Interim Rental Adjustments..................................................................................... 5 3.8 Late Payment Charge............................................................................................. 5 ARTICLE 4 - USE OF LEASED LAND.................................................................................... 5 4.1 Use of Leased Land................................................................................................. 5 4.2 Obligations of LESSEE........................................................................................... 5 4.3 No Preferential Rights to Use Public Facilities..................................................... 6 4.4 Adequacy of Public Facilities................................................................................. 6 4.5 Tariffs and Other Service Fees............................................................................... 6 4.6 Time for Payment of Utilities and Taxes................................................................. 6 4.7 Other Uses.............................................................................................................. 6 ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS.......................................................... 7 5.1 Utilities....................................................................................................................7 5.2 Third -Party Improvements...................................................................................... 7 5.3 Easements............................................................................................................... 8 ARTICLE 6 - CONSTRUCTION BY LESSEE......................................................................... 8 6.1 Improvements on Leased Land............................................................................... 8 6.2 City Review of Construction................................................................................... 9 ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS ...................................... 9 7.1 Return of Leased Land in Original Condition........................................................ 9 ARTICLE 8 - FORCE MAJEURE........................................................................................... 10 ARTICLE 9 - LESSEE'S ACTS OF DEFAULT..................................................................... 10 ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE .................................................. 11 ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE ....................... 12 11.1 Real Property Improvements................................................................................ 12 11.2 Personal Property................................................................................................. 13 i 33 ARTICLE 12 - ASSIGNMENT OR SUBLEASE.................................................................... 13 12.1 Assignment of Lease or Subleasing....................................................................... 13 12.2 Assignment of Lease for Security.......................................................................... 13 12.3 Assignment to Affiliate.......................................................................................... 13 ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY............................................ 14 ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY................................................. 14 ARTICLE 15 - INSURANCE.................................................................................................... 14 15.1 Minimum Insurance Requirements....................................................................... 14 15.2 Subrogation Rights Waived................................................................................... 15 ARTICLE 16 - CONDEMNATION.......................................................................................... 15 ARTICLE 17 - ARBITRATION............................................................................................... 16 17.1 Arbitration............................................................................................................ 16 ARTICLE 18 - MAINTENANCE AND REPAIRS................................................................. 17 18.1 Normal Maintenance............................................................................................ 17 18.2 Safety Issues.......................................................................................................... 17 18.3 Cost of Repairs...................................................................................................... 18 ARTICLE 19 - ENVIRONMENTAL CONCERNS................................................................ 18 19.1 Hazardous Materials............................................................................................ 18 19.2 Permits and Reporting.......................................................................................... 20 ARTICLE 20 - ESTOPPEL CERTIFICATES........................................................................ 21 ARTICLE 21 - CONDITIONS AND COVENANTS.............................................................. 21 ARTICLE 22 - NO WAIVER OF BREACH........................................................................... 21 ARTICLE 23 - TIME OF THE ESSENCE.............................................................................. 21 ARTICLE 24 - COMPUTATION OF TIME ........................................................................... 21 ARTICLE 25 - SUCCESSORS IN INTEREST....................................................................... 21 ARTICLE 26 - ENTIRE AGREEMENT................................................................................. 21 ARTICLE 27 - GOVERNING LAW........................................................................................ 22 ARTICLE 28 - PARTIAL INVALIDITY................................................................................. 22 ARTICLE 29 - RELATIONSHIP OF PARTIES.................................................................... 22 ARTICLE 30 - INTERPRETATION........................................................................................ 22 ARTICLE 31 - CAPTIONS....................................................................................................... 22 ARTICLE 32 - AMENDMENT................................................................................................. 22 ARTICLE 33 - NOTICES.......................................................................................................... 22 ARTICLE 34 - FIRE PROTECTION FOR LEASED LAND IN SMIC ............................... 23 EXHIBIT A ii 34 LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and Harbour Holdings, LLC (the "LESSEE"), whose mailing address is P. O. Box 2292, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as Lot 8 Block 6, Seward Small Boat Harbor Subdivision, as shown on Plat 2000-19, Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 1,306 square feet, more or less; and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below) to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: ARTICLE 1 - LEASED LAND 1.1 Description ofLeased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: Lot 8 Block 6, Seward Small Boat Harbor Subdivision, as shown on Plat 2000-19, Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 1,306 square feet, more or less (the "Leased Land"). The Leased Land is also depicted on the attached Exhibit A, which is incorporated herein by reference. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Property Accepted "As -is. " LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as -is" and without reliance on any expressed or implied representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 35 1.4 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications, and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re -zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules, or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of-way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.5 Platting. If LESSEE requests a replat of the Leased Land, CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. In the event CITY elects to replat, LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY -owned real property adjacent to the Leased Land. 1.6 Development of Leased Land. LESSEE shall continue to operate a retail business, through the term of the lease. LESSEE understands that construction and operations of its retail business is a major consideration for the CITY's agreement to lease the Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the Leased Land without the consent of the CITY. 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 Seward Boat Harbor. b) In accordance with the provisions of Article 12, 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 Seward Boat Harbor. 36 ARTICLE 2 - LEASE TERM Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization in Resolution No. 2017- (the "Resolution"). The Lease Term shall commence on the date this LEASE is signed by CITY and that date shall be the effective date of this LEASE (the "Effective Date"). The Lease Term shall run for approximately 33 years from the Effective Date, ending at midnight on May 24, 2050: LESSEE shall have the right to extend the term of this LEASE for 2 additional 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 33 of this LEASE. d) The City Council of the 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 June 30, 2020, the annual rental rate for the Leased Land shall be set at $4,800 Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one -quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2020, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety (90) days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY (including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE 37 not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If, for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE's appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. W 3.6 Effective Date ofAdjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1, 2017 and on July 1 of every year thereafter (each on "Interim Rental Adjustment Date") in an amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion, to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of $2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for a retail shop. 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: 39 a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall operate a retail business on the Leased Land. e) Any changes to this site require prior CITY approval, through the City Manager. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations, and scheduled fees from time to time, even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space, including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. M ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third -Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or j oin 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 41 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 -parry 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 CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 - CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build, and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations, or improvements, shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights -of -ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as -built survey depicting the improvements as completed on the Leased Land. 42 e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest, a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). f) CITY may, as contemplated by Alaska Statutes, give notice of non -responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state, and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building, mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights -of -way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non -abusive use. The Leased Land shall be free of all Hazardous Materials and 43 contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE 8 - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 - LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof, the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption, or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10 - REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law, or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 10.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; M d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such 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 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. M 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 - ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser, or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; 47 provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death, and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15 - INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000) is also required. LESSEE shall obtain owned and non -owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in EM assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. LESSEE agrees that its policies of insurance wi I I include a waiver of subrogation clause or endorsement releasing CITY, its elected and appointed officials, employees and volunteers, and others worki ng on behalf of CITY from any and all I i abi l i ty or responsibility to LESSEE or anyone cl ai m i ng through or under LESSEE byway of subrogation or otherwi se, for any l oss of any ki nd (including damageto property caused by f i re or any other casualty), even if such I oss shal I have been caused by t he f aul t or negl i gene of the CI TY, its elected or appointed officials, em pl oyees or vol unteers, or others worki ng on behalf of the CITY. This provision shall be applicable and in full force and effect with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and L ESSEE's pol i ci es of i nsurance shad I contai n a cl ause or endorsement to the eff ect that such rel ease shad I not adversel y aff ect or i m pad r such pol i ci es or pre udi ce the ri ght of L ESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers, and others working on behalf of CITY) during the time of LESSEE's occupancy or use. ARTICLE 16 - CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts, and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17 - ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, may be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.300 et. sec .), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Either party may submit to the other party a request for arbitration and the party receiving a request shall have twenty (20) days to consent, in writing, to the use of arbitration to resolve the dispute. Failure of either party to consent will preclude the use of arbitration for that dispute. The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each parry, commencing with the parry demanding the arbitration, striking one name from the list until only a single name remains. 50 d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, (i) the names, addresses, phone numbers, and email addresses for all witnesses who may testify at the hearing; and (ii) all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18 - MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non -abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution, and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well -versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk, and expense. 51 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19 - ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal, or restoration mandated by a federal, state, or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept, or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. 52 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 or elsewhere; or (b) condition, use, or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage, and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney, consultant and expert fees, court costs, and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release, or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals, or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (1) occur prior to or during the term of this LEASE; and (2) arise, in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants, 53 or any other persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste, hazardous waste, extremely hazardous waste, or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material, and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state, or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies of all reports between LESSEE and any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. 54 ARTICLE 20 - ESTOPPEL CERTIFICATES Either parry 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 21 - CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22 - NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant, or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant, and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 - TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 - COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a holiday, and then it is also excluded. ARTICLE 25 - SUCCESSORS IN INTEREST Each and all of the terms, covenants, and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 - ENTIRE AGREEMENT 55 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 27 - GOVERNING LAW This LEASE shall be governed by, construed, and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including, without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 28 - PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29 - RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of j oint 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 30 - INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 - CAPTIONS Captions of the articles, paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 - AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 - NOTICES 56 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: Each parry shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34 - FIRE PROTECTION FOR LEASED LAND IN SMIC LESSEE acknowledges that the CITY OF SEWARD lacks the personnel and resources to provide onsite fire protection in the Seward Marine Industrial Center, and emergency response time may be longer than for other areas in Seward. LESSEE accepts the risks inherent in conducting its operations in this area and willingly assumes, at its sole cost and risk, the obligation to provide fire protection to its operations on Leased Land in SMIC, and fire prevention to industry standards to minimize risks to adjacent facilities and nearby operations. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: CITY OF SEWARD Jim Hunt, City Manager Date: LESSEE: Date: 57 ATTEST: Johanna Kinney, CMC City Clerk STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 20[], by Jim Hunt, City Manager of the City of Seward, Alaska, on behalf of the City. STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) by as Notary Public in and for Alaska My Commission Expires: The foregoing instrument was acknowledged before me this day of , 2017, who executed the foregoing document on behalf of of the [limited liability] company. Notary Public in and for Alaska My Commission Expires: WM Touga.s tease s60va•15'E - ,,,,,,,! ri Lot 1& Ir-� sa"'Ds'Ss•wl,e.zs P N Pur ' Lot 12 frD enr ar N8aD0'ISw v3t.D0' I, _ m Alaska — — — — w =_ —_— .� — w w_ — _ __. — Dar Jl.oa' 3,.65 PAW Nye �v a I warjlry aAK rrca«.e. 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I w r $I .O C. n:lca 1 f ( 9i13 1., °�' A t � W B -�--ve-n- a i� rvWVo u4w Iz]aa] --"--O a+ Block S I$ a alris , — — — — — — — — — ..____ --. — IIa -Z l Q q�' �9 Ae-z min U PLAT APPROVAL REEp 58 �^'d BLOCK B , �m III PLAT WAS APPROVED BY INE KENAI PEMNSULA .—DIN PLANNML Ix '� � - 1_ � � ��� J7.�e'_3 j sss,nz• 1e, cauNlssroN IT rx6 uEenxe _ _--'-- -Nu,r eaeemrnl __� i fa&Q 4 KERN PEHIN3DLA BO � Iur[5artr wRaErs �� w vp er xgn.el. rh - KENµ .[MASK pl I 9g611 %LZ.T%� (SO.iZI'W'W t31t.2J'] NOI'xJ't a"f 12]Z i0' f683.tJ6'J 6E].89 �— `—. l�L s - °-,/Sa Xvu W — — Avenue `��I KPB FILE No. 2000-166 o°w. z �x w.wew, ... Seward LEGEND: Mores mftsg ft QiMm Small Boat Harbor JjIi NDNNNENr (— Iwo wrvey) t) Darekgme„e el Meee lol, N wb]eet fn [M1e Cwy pi Serna'e ,minq raydn,wps. CERTIFICATE of OWNERSHIP NOTARY'S ACKNOWLEDGMENT �o< "i["e «renWewtSurpeiw4or�P1.11," me"1, . w4:tn°1' ® I-,lz- uee,. cep tPrep«tr =eme. rer�,aj z) Ho al.°fe «nn to smle ma�laeed iiDxs pNmxted awets ooapwa Nprbpr saa,il:ap - Plel ]3�Jxa v bM1. sLpte of Nnewa Droerfm.n[ m n«�Ipwt°u«,. end DEDICATION 0 it, I— I ellN plug (fwnd) 3) Lple eNM1lI, ,k[ abelwebe may pe Iaetetl Nllnln a tle,gnglN Ropa Su65GRREN 11.. 1R1 SWIX[N BEFCPE Nf IrY51i__ DAr V J(L[[®!I(- Located atseeara Pe<ereinq 91vl.iclef SktWn 5.[M1S.Ersuugn. Nnio 0 mmt mvet comApP' •Nn 1 HERfEY 4YRDPY MAT K ARE ME DMIDI (S) CF ME MAL RRDpERh x0M Frw_ W 'IFtil' >t(Le Kere Pmwt la G 5/a' rwor (buetl) b..a �enetwe to �.uCna�ternl5,'S°eNaaeeplme°n N'onagemeel. urwy SHOYM AND O 9ED xEPE AND 1x6R w AMMY AD— TLIS RAN Cm,a,ninq N335 Acne O 1/x' nbar to eanelrucibn. N• properly rnaY pe roquirea prlcr CF SUBDINSION AND BY my EPEE WNSENT DE Ai ALL RIG,RS-OP- (rePntl) b we tIa a WAY AND pN%IC AREAS YD Pueuc usE AND cRAedt ALL EA6EN€NT5 TO ��� ME D. 5xORN. ♦ PK uAll Ira,eel 47 WASJEWAi[R osvosAc, — 5 rar we,f IN. Al elepeeal, IAnt t, f ,:,}�e nBalalar regxiremmle ore °n fde pl INe AleeNp Deparimenl pl/ -'= • 1-t/x- Alxm. Cop inei) £nrkwwnentd Con[ervellen. � NY CdAMI5510N CX%RE6 / 4 �pTAl1h'' - K 5) R�lyt .1 woy nI., C4 or Lot I ffl a ID i, ­1— !a !n - R.�e�t"wT'fFi i; _'li Y A,mager _ p ,W F. SO—pry r.en A—. g9Bl,-BLS NAG N 1 Iu11 a buiWF edl. xo eons ren eel Irr a elnee IAe bullw'ngw.dl CI4y pl SeNva =_f'4 9MK --- Id°°mp,l p°e�i-nn aLAwlExs ne aroperly Ilne one la the monument. P. D. , A IB) q I 1 aEGGN9 t' 40 - a!fi Nwbm sub61"I,pe e) AntmupNan to KPB 2D.R6.2.. t; I , [ put smart, uoseu es6N,-DI6] ,a6 NI 2D615 DRAWN, 6 Dv[vmpn, Sapp CE pnt a 88 Spl1 ra4+R<e m ass w a _ [ j REGrgRs DAIUM - acee+.;ee sebalWl°n a°&E°I°e etnet •m grmlea ny fM1e KP6 FI9nning temmisela.. en su6x,i6 AMe o.ember, 2 cALe - BePlaebw 25. 28Do. IN., A ]. 1. Fl DK: —D-3.NP4. 59 Seward Wildlife Cruises LLC DBA Major Marine Tours PO Box 1571 Seward, AK 99664 Phone (907) 224-8030 March 10, 2017 City of Seward Harbormaster Attention: Norm Regis P.Q. Box 167 Seward AK 99664 RE: Re -assignment of Lease No. 97-105 for Lot 8, Block 6, Seward Small Boat Harbor Division Torn Tougas and Seward Wildlife Cruises LLC (dba Major Marine Tours) would like to formally request a re -assignment of Lease agreement number 97-105, for the land described below. Lot 8, BIock 6, Seward Small Boat Harbor Division, according to Plat 2000-19 filed in the Seward Recording District, Third Judicial District, State of Alaska. With permission of the City of Seward, Harbour Holdings, LLC would like to become the official LESSEE. Please advise us of the next step in the process of revising the ]ease agreement to reflect a new LESSEE assignment. Thank you for your time and consideration in this matter. Sincerely, Thomas Tougas President - Owner Seward Wildlife Cruises LLC dba Major Marine Tours Harbour Holdings LLC P.O. Box 2292 Seward, AK 99664 Phone (907) 362-1900 March 10, 2017 City of Seward Harbormaster Attention: Norm Regis P.O. Box 167 Seward AK 99664 RE: Extension on Lease No. 97-105 for Lot 8, Block 6, Seward Small Boat Harbor Division Harbour Holdings LLC would like to request a 99 year extension on lease No. 97-105 for the land described below: Lot 8, Block 6, Seward Small Boat Harbor Division, according to Plat 2000-19 filed in the Seward Recording District, Third Judicial District, State of Alaska. As it stands, this lease will expire on September 23, 2017, Harbour Holdings, LLC requests that the City of Seward extend this Iease.Please advise us of the next step in the process of extending the lease agreement. Thank you for your time and consideration in this matter. Sincerely, Joseph Tougas Member Manager 61 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, INCREASING THE MILL RATE FROM 3.12 MILLS TO 3.84 MILLS TO ACCOUNT FOR COSTS ASSOCIATED WITH THE ISSUANCE OF $3 MILLION IN GENERAL OBLIGATION BONDS FOR ROAD IMPROVEMENTS IN ACCORDANCE WITH RESOLUTION 2017- 003 WHEREAS, the Seward City Council passed Resolution 2016-045 on July 25, 2016 providing for a proposition to be placed on the ballot at the election on October 4, 2016, seeking voter approval to issue up to $3 million in general obligation bonds of the City for the purpose of planning, designing and constructing road improvements; and WHEREAS, the results of said election were as follows: "Yes" votes were 297 and "No" votes were 108, for a 74% favorable vote affirming the issuance of general obligation bonds; and WHEREAS, the ballot proposition language stated that, "The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payment of principal and interest on the Bonds will be Two Hundred Thirty Thousand Dollars ($230,000), or a 0.72 increase in the mill rate (from 3.12 mills to 3.84 mills, equal to an increase of $72 per $100,000 in property value) or the approximate equivalent of a one -fifth of one percent (0.005) sales tax (from 4.0% to 4.2%)"; and WHEREAS, the City has secured $2.8 million in additional state and federal funds to address a large portion of local road improvement needs, and the additional $3.0 million in local funding will enable the City to complete the majority of its identified road projects; and WHEREAS, the City has no outstanding debt related to roads or sidewalks, and the only general obligation bonds are for the Library/Museum with an outstanding balance at December 31, 2016 of $3,210,000; and WHEREAS, the State of Alaska Department of Transportation will be managing the road improvements project and the contract for the project will be let by the State of Alaska in accordance with State competitive procurement requirements, with additional work on the project on the City's behalf, to be considered additive to the main State contract. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: 62 CITY OF SEWARD, ALASKA RESOLUTION 2017-024 Section 1. The mill rate of the City of Seward is hereby increased from 3.12 mills to 3.84 mills to account for costs associated with the issuance of $3 million in General Obligation bonds for road improvements in accordance with Resolution 2017-003. Section 2. 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 3. Unless subsequently amended by the Seward City Council prior to the Kenai Peninsula Borough deadline for levying the 2018 real and personal property tax, the City of Seward's property tax is hereby levied at the rate of 3.84 mills per dollar of assessed valuation in Municipal Service Zones One (Borough designation TCA 40) and Two (Borough designation TCA 41). Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of April, 2017. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor 63 Agenda Statement Meeting Date: April 24, 2017 To: City Council Through: Jim Hunt, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Increase in property tax mill rate to cover costs of $3 million general obligation road bond BACKGROUND & JUSTIFICATION: The Seward City Council passed Resolution 2016-045 on July 25, 2016 providing for a proposition to be placed on the ballot at the election on October 4, 2016, seeking voter approval to issue up to S3 million in general obligation bonds of the City for the purpose of planning, designing and constructing road improvements. This funding is in addition to approximately $2.8 million in state and federal funds which the State of Alaska DOT will be administering on behalf of the City, to repair and upgrade local roads. An election was held on October 4, 2016 and the results showed a 74% approval rating in favor of issuing bonds for the road project (297 "yes" votes and 108 "no" votes). The ballot proposition language stated that, "The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payment of principal and interest on the Bonds will be Two Hundred Thirty Thousand Dollars ($230,000), or a 0.72 increase in the mill rate (from 3.12 mills to 3.84 mills, equal to an increase of $72 per $100,000 in property value) or the approximate equivalent of a one -fifth of one percent (0.005) sales tax (from 4.0% to 4.2%)". The City expects to issue bonds prior to the Council meeting of April 24, and the bond closing is slated for April 26 in Seattle. The City has no outstanding debt related to roads or sidewalks, and the only general obligation bonds are for the Library/Museum with an outstanding balance at December 31, 2016 of $3,210,000. The State of Alaska Department of Transportation will be managing the road improvements project and the contract for the project will be let by the State of Alaska in accordance with State competitive procurement requirements, with additional work on the project on the City's behalf, to be considered additive to the main State contract. INTENT: To increase the mill rate to cover the cost of $3 million in general obligation bonds for the purpose of road improvements. z CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): 2. Strategic Plan (document source here): 3. Other (list): Resolution 2016-45 and Resolution 2017-003 X FISCAL NOTE: The annual debt service payments are expected to be approximately $230,000 resulting in an increase in the mill rate from 3.12 to 3.84 mills. Approved by Finance Department: _nfw V- ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approves Resolution 2017- 024 approving an increase in the property tax rate from 3.12 to 3.84 mills, in accordance with the proposition approved by the voters of the City of Seward in the election of October 4, 2016. X Agenda Stateient Meeting Date: October 10, 2016 From: Brenda I Ballou, Acting City Clerk Agenda item: Certification of the October 4, 2016 Regular City Election BACKGROUND & JUSTIFICATION: The City conducted its annual municipal election on Tuesday, October 4, 2016. The Canvass of the election was conducted on Thursday, October 6, 2016. A report stating the final results of the election, including votes cast by absentee and questioned voters, is attached for your certification. The nervily -elected council members will Nz sworn and seated as the first item of business at the October 24, 2016 regular meeting, RECOMMENDATION: Ceritify the October 4, 20I6 zrgul.a,. 61;y e1(—z-6on and declare results final. REPORT OF ELECTION CANVASS BOARD Certification of City Clerk's Recording We, the undersigned, duly appointed at the City Council Regular Meeting on September 12, 2016 as the Canvass Board for the City of Seward, do hereby certify that we have examined in detail all absentee, special needs and questioned ballots, original and duplicate tally sheets, and questioned and special needs registers from the City of Seward precinct. Upon completion of the canvass, it is our opinion that the attached summary of election returns, as compiled by the Canvass Board and recorded by the City Clerk, accurately reflects the totals shown on the Certificate of Election Returns (ballot statement) by the election board of the voting precinct for the October 4, 2vd� Election. Dated this 6`h day of October, 2016. (Attach Final Certificate of Results) 67 FINAL CERTIFICATE OF RESULTS FOR THE CITY OF SEWARD REGULAR MUNICIPAL ELECTION HELD OCTOBER 4, 2016 The City Canvass Board has canvassed the absentee and questioned ballots of the Regular Municipal Election held October 4, 2016_ The canvass took place on Thursday. October 6, 2016. 'Mcir totals are: REPORT OF ABSENTEE AND QUESTIONED BALLOTS Absentee Ballot.-, Voted 65 Questioned Ballots Voted 9 Special Needs Ballots Voted _ 3 T&W Voted 77 REJECTED Reason: No voter signature (Z) 1 Total Rejected 1 COUNTED Absentee Ballots Counted 64 QQut%tioned Ballots Counted 9 Special Needs BAints Counted 3 Total Counted 76 THREE (3) CITY COUNCIL SEATS AVAILABLE (TWO-YEAR TERMS) Election Dav Votes ratter Canvass V W% Total Votes Ristine Casagranda 169 39 208 Suzanne Towsley 159 25 184 John D. Hull, Jr. 44 6 50 Dale R. Butts 168 33 201 Erik R. Slater 165 41 206 Marianna Keil 161 42 203 Write -Ins 6 0 6 October 4. 2016 City of Seward Rcgular Mection FhW Certificate of Results Page 1 of 2 FINAL CERTIFICATE OF RESULTS FOR THE CITY OF SEWARD REGULAR MUNICIPAL ELECTION HELM OCTOBER 4, 2016 SEWARD PROPOSITION NO. I GENERAL OBUGATIION BONDS FOR SEWARD ROAD IMPROVEMENTS Shall the City cif Seward incur deb: and issue general obligation t onds in an amount not to exceed three million dollars ($3,000,000) to finance the planning, design and construction of mad itnprovemunts in the Cit)P The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and inte mst tin the Bonds will be Two Hundred Thirty Thousand dollars ($230,(XX)), or a 0.72 increasc: in the mill rate (frorn 3.12 mills to 3.84 mills, equal to an increase of $72 per $100,000 in property value) or the approximate equivalent of a cane -fifth of one percent (0.005) sales tax (from 4.0% to 4.2%). !NO SUMMARY Election f)ay Votes — Canvass Votc-s 240 90 57 18 A total of 333 people voted at this election. There were 65 absent -. in -person amd by -mail ballots. There were 3 serial needs ballets. There were 9 questioned ballets. Therefore. 410 voters turned out. Total Votes M. I<�7on completion al'the canvass, it is our opinion that the results compiled above accui ately rcflect thefinal totals for the Regular C"ij1, Flection held October 4, 2016 iff the Oita, gfSem-arcl Alaska. Dated this 6"' dad: of Octobm 2016. Re October 4, 2016 City of Seward Replar Election Final Certificate of Results Page 2 of 2 z The Seward Phoenix LOG • September 29, 2016 • Page 7 Girls From Page 6 efforts at the Region lll meet. A fourth -place fin i sher at last year's state meet, Lindquist breezed to a return trip by placing seventh in the final standings. A junior. she completed the 5-kilometer course in a time of 20 minutes and 33 seconds. Horner'sMeganPitzman took home first place with a time of 19:37. She edged out teammates Audrey Rosencrans andAummn Lindquist finished 17th overall with a tun of 21:39.9. Moore and Lorring placed 19th and 20th, respectfully, with times of 21.42.2 and 22;16.4. Lorring's time marked a per- sonal -best for her. Sophomores Coral Petrosius and Emma Armand and fresh- man Dow also legged out strong efforts. Petrosius finished 28that 23:06.2. Armand was 30th with a personal -best of 23:24.7, while Dow checked in at No, 1 with a personal -record of 24,24.7. the iV division, Ally Daigle in the standings. Over- Chryss finished 24th overall at all, all five of Homer's scoring 24.13.1, while Hayley Unmin runners finished in the top 10 and helped the Lady Mariners breeze to a repeat a the Region III title. Anchorage Christian's Tease O'Hara finished fourth, finishing just ahead of Houston sophomore Allison Van NI(and Grace Christian senior Grace Cannon. Seward sophomore Sadie Lindquist also turned in an out- standing effort, as did EmmaLce Moore and Tanis Louring. Sadie was 48th at 26:59.9. Nele Ho- henswin and Kalista Rodriguez placed 52nd and 54th, respec- tively. Hohenstein finished with a personal -best of 28:03.6, while Rodriguez checked in at 28:15.0 -also a personal record. Madilyn Moore and Rebekah Christianson also notch PR's in the race. Moore was 57th at 29:06.5. while Christianson was 61 st at 30:242. 2016 Region III XC Championships 2016 Region III Cross Country Championships Held Sept. 23 In SoldoMa GIRLS F1naI Results TEAM TOTALS - 1. Homer 23; 2. Grace Chr'sstian 46; 3, $award 83; 4. Anchorage Christian 90. INDIVIDUAL RESULTS t. Allegan Pltzman, Homer. 19:37; 2. Audrey Rosencrons, Homer, 19:48; 3. Autumn Daigle, Hamer, 19:47: 4. Tessa O'Hara, ACS, 19:52: 5. Allison VanPah, Houston, 19:54; 6. Grace Gannon, Grace, 20:01; 7. Ruby Lindquist, Seward, 20:03; 8. Malty Jackson, Grace, 20713: Q. Lauren Evarts, Homer, 20:28; 10. Alex Mo- seley, Homer, 20:28; 11, Charles Demientlefi, Grace, 20:32; 12, Laura Ellis, Grace, 20:36; 13. Haley Knott, Boys From Page 6 a time of 16 minutes and 9 sec - ends Homer. 20:42; 14. Muddy Morgan, Greve, 20:85; 15. Kalle Davis, Hom- er, 21:02; 16. Grace Annett, Grace 21:33; 17. Sadie Lindquist, Seward,, 21:39; 18. Amy Hatter, Grace, 21:41; 19. Emma Moore, Seward, 21:42: 20. Tanis Lorring, Seward, 22:16: 21. Destiny Reimers, ACS, 22:18; 22. Anike Witsce, Cordova, 22:24; 23. Tommi Cdst, Redington, 22:32: 24. Mary Kate Parks, ACS, 22:42: 26. Rio Smyke, Cordova, 22:42; 26. Ruth Sobek, ACS, 22:49: 27. Ash - lay Fuller, ACS, 22:66; 28. Coral Petrosius, Seward, 23:06: 29. Em- it' Todrick, ACS, 23:11; 30. Emma Armand, Saward, 23:24; 31. Sophia Dow, Seward, 24:24; 32. Katelyn Wadsworth, Vsklez, 24:25; 33. Am- ber, Malor, Valdez. 24:38; 34. Maken- An Hofacker, ACS, 25:23. Christian. Seward also picked up solid outings from Zen Petrosius and Brendan McMurry, Petro- sius finished 22nd at 18:17.2, He did even better than that while McMurry raced his way en route to winning this year's to 26th. Steven Osborn, Roman Region III title. He clocked a personal -best time of 15:54.1. Backed by Kratz's success, the SHS boys' team finished third in the team totals, plao- ing behind Homer and Grace Hamner and laden Van Dyle also did well, taking 29th, 31st and 32nd, respectively. Simon Estes rounded out the varsity's effort by placing 34th. 2016 Region IIi XC Championships 2016 Region III Cross Country Championships Held Sept. 23 in Soldotna BOYS Final Results TEAM TOTALS- I. Homer3T 2. ACS 56: 3. Grace 57; 4. Seward log; 5. Cordova 133: 6. Houston 162. INDIVIDUAL RESUL75 1. Hunter Kratz, Seward, 18:54; 2. Blake Bennett, ACS, 16:01: 3. Zach Hamberger. Cordova, 16:22; 4. Trent Fritzel, Grace, 16.28; 5. Jordan Beschy, Homer, 16:42; 6. Jacob Da- vis, Homer, 1845; 7. Luciano Fasulo, Homer, 16:53; B. Jared Brard. Homer, 16:57; 9. Luke Fdtzel. Grace, 17:10; 10. Gabe Marlin, Grace, 17:18: 11. Charlie Menke, Homer, 17:29: 12. William Parks, ACS. 17:38; 13. Keleb Smith, ACS, 17:39; 14. Ben Sobek. ACS, 17:40; 15. John Sanford, ACS. 17Al; 16. Vincent Covardell, Grace, 17:60;17. Denver Wadowakr, Homer, 17:69: 18. Levi G€onet Grace, 18:02; 19. Tobin Karlberg, Grace, 18:09; 20. Jens Knutson, Houston, 111:11; 21. Ethan Isaacson, Grace. 16:13; 22. Zen Petros€us, Seward, 16:17; 23. Bill Rich, Homer, 18:27; 24, Ri- ley Scott, Houston, 18,34, 25, Dil- lon Fogg, ACS, 18:42; 26, Brandon McMurry, Seward, 18:48; 27, Shan- non LeMay, ACS, 18:60; 28. Gage Frohnapefel, Cordova, 19:06; 29. Steven Osborn, Seward, 19:08; 30. Micah Whitcomb. Cordova, 19:19; 31. Roman Hamner, Seward, 19;25; 32. Jaden Van Dyke, Seward, 19:34; 33. Isaac Smolder, Houston, 19:40; 34. Simon Estes, Seward, 19:54; 35. Bryan McCollum, Nlkiski, 2D:29; 36. James Hecock, Valdez, 20:41; 37. Rafael Alfaro, Valdez, 20:66; 38. Jo- seph Yourkoski, Niklsld, 20:58: 39. William Denton, Cordova, 21:02; 40. Lein Guim, Houston, 21:17; 41. Gavin Waigs, Nikiski, 21:36; 42. Kaieb Cofillo, Cordova, 22:54: 43. Ethan Beckett, Cordova, 23:03; 44. Ben Swanson, Valdez. 23:12; 45. Auden Hendrick, Houston, 24:07; 48. Ben Wray, Cordova. 24:57. NOTICE OF REGULAR MUNICIPAL ELECTION TUESDAY, OCTOBER 4, 2016 NOTICE IS HEREBY GIVEN that on Tuesday, October 4, 2016, them will be conducted in the City of Seward, Alaska, a Regular Municipal Election in accordance with Seward City Code. Title 4. CITY OFFICIALS The following candidates have filed for elective office within the City of Seward and will appear on the Regular Municipal Election ballot: SEWARD CITY COUNCIL TWO-YEAR TERMS (fbre for no more than three) CASAGRANDA, Ristine TOWSLEY, Suzanne HULL, John D. Jr. BUTTS, Dale R. SLATER, Erik IL KEiI.. Marianna Note: The artier of the aoafriare mmnes were drawn in a random d My per SCC 41 O4.025. PROPOSITIONS SEWARD PROPOSITION NO. 1 GENERAL OBLIGATION BONDS FOR SEWARD ROAD IMPROVEMENTS Shall the City of Seward incur debt and issue general obligation bonds in an amount not to exceed three million dollars (S3,000,000) to finance the planning, design and construction of road improve- ments in the City? The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and interest on the Bonds will be Two Hundred Thirty Thousand dollars ($230,000), or a 0.72 increase in the mill rate (from 3,12 mills to 3.84 mills, equal to an increase of $72 per S100,000 in property value) orthe approximate equivalent of a one -fifth of one percent (0.D05) sales tax (from 4.0% to 4.2 %), YES [A"Yes" vote would authorize the issuance of not to exceed $3 million dollars of general ob- ligation bonds for road improvement projects.] NO [A "No" vote would not authorize the issuance of not to exceed $3 million dollars of general obligation bonds for road improvement projects.] REGISTRATION OF VOTERS As provided by AS 15.07,070, a person is qualified to vote who is or will be at the time of the elec- tion: • a citizen of the United States; • at least 18 years of age or will be 18 years of age within ninety (90) days of registering to vote; • a resident of the city fro at least thirty (30) days immediately preceding the election; •registered to vote in state elections at a residence address within the city at least thirty (30) days before the municipal election at which the person seeks to vote; and • is not disqualified from voting under Article V of the State Constitution. The deadline for residents to register to vote or update their voter registration is Sunday, Sep- tember 4, 2016. Please see the state'swebsite for more information at htttl:/lwwvvalr&tions alaska aov or stop by the City Clerk's Office (note - the Clerk � Office is not open on Saturdays or Sundays. so to register in time for the October 4. 2016Mrmicipal Election with the City'! you must come to the office by Friday: September Z 2016). ABSENTEE VOTING Absentee voting is provided for any qualified voter who expects to be absent from the city election precinct for the entire time the polls are open on Election Day, or who will be unable to vote by reason of infirmity, illness or physical handicap: A voter may request an absentee ballot by mail from the City Clerk until Monday, Septem- ber 26, 2016. • A voter may vote on absentee ballot in person at the office of the City Clerk starting Mort - day, September 19, 2016 and continuing through Monday, October 3, 2016, SPECIAL NEEDSS, VOTING If you are a qualified voter and cannot make it to the polls, you may vote a Special Needs ballot by designating a personal representative to bring the ballot to you. Your personal representative must appear at the City Clerk's office between September 19, 2016 through October 3, 2016. or at the polling location on Election Day on October 4, 2016. If you or someone you know needs assistance, or needs a personal representative, please contact the City Clerk at 907-2244046. CITY POLLING PLACE Election Day is Tuesday, October 4, 2016. The polls wffl be open on from 7.00 am. - 8:00 pm. The polling place is located at the KM Rae Building located at 125 Third Avenue In Seward, Alaska. Additional information regarding all aspects of the 2016 Municipal Election may be obtained by con- tacting the City Clerk's Office at P.O. Box 167, Seward, AK 99664 or clerk. eitvofsevvard.net or 907- 224-4045 or 907-2244046. Please call if you have any questions:'. Brendal. Ballou, CMC Acting City Clerk 70 Sponsored by: Port and Commerce Advisory Board CITY OF SEWARD, ALASKA RESOLUTION 2017-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA ADOPTING THE PORT AND COMMERCE ADVISORY BOARD PRIORITIES FROM JANUARY 2017 TO DECEMBER 2017 WHEREAS, the Port and Commerce Advisory Board's (PACAB) responsibilities are listed in SCC§ 2.30.325 Powers and Duties; and WHEREAS, City Council and PACAB held a March 6, 2017 joint work session to review and update the current Priorities List; and WHEREAS, at their April 5, 2017 Regular Meeting, the Port and Commerce Advisory Board reviewed and updated their Priorities List; and WHEREAS, with the passage of PACAB Resolution 2017-001, PACAB recommends Council adoption of the 2017 Priority List NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The following List of Priorities through December 2017 is hereby approved: PRIORITIES 1. Review information provided by administration and make recommendations to Council regarding vessel property tax. 2. Provide review and recommend changes to the Harbor Tariff. 3. Identify needed support, strategies incentives and measures that will support industries including the CDQ fleets and related but not limited to, Oil & gas, transportation including Seward Airport, and commercial fishing. 4. Review and make recommendations to the Seward Marine Industrial Center (SMIC) Development Plan. 5. Council designate PACAB for initial vetting of energy options 6. Provide review and recommendations for the South Harbor Uplands Development Plan. Section 2. This resolution shall take effect immediately upon its adoption. 71 CITY OF SEWARD, ALASKA RESOLUTION 2017-025 PASSED AND APPROVED by the City Council of Seward, Alaska this 241h day of April, 2017. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor 72 Council Agenda Statement Meeting Date: April 24, 2017 To: City Council 4�� Through: Jim Hunt, City Manager From: Port and Commerce Advisory Board Agenda Item: Resolution Adopting the Port and Commerce Advisory Board (PACAB) Priorities for 2017 BACKGROUND & JUSTIFICATION: Annually, the Port and Commerce Advisory Board establishes their priorities. The Board reviewed their Priority List at the March 1, 2017 regular meeting. During the joint work session on March 6, 2017 the Board and Council reviewed and updated the 2017 Priorities List. At their April 5, 2017 meeting PACAB approved Resolution 2017-001 recommending Council adoption of the Board's 2017 Priority List. CONSISTENCY CHECKLIST: Yes No N/A 1 • Comprehensive Plan: X 2• Strategic Plan: X 3 • Other: X FISCAL NOTE: The City will have no costs associated with the approval of the Port and Commerce Advisory Board Priorities List. Approved by Finance Department: z, INTENT: Adopt the 2017 Port and Commerce Advisory Board Priorities List. ATTORNEY REVIEW: Yes: No: N/A X RECOMMENDATION: Approve Resolution 2017-025, Adopting the Port and Commerce Advisory Board Priorities from January 2017 through December 2017. 73 J CITY OF SEWARD, ALASKA Sponsored by: PACAB PORT AND COMMERCE ADVISORY BOARD RESOLUTION 2017-001 A RESOLUTION OF THE SEWARD PORT AND COMMERCE ADVISORY BOARD (PACAB) RECOMMENDING COUNCIL APPROVAL OF THE 2017 PACAB PRIORITIES WHEREAS, PACAB's responsibilities are listed in SCC§ 2.30.325 Powers and Duties; and WHEREAS, at its March 1, 2017 Regular Meeting PACAB reviewed and refined the 2017 Priorities List, and WHEREAS, City Council and PACAB held a March 6, 2017 joint work session to review and update the current Priorities List NOW, THEREFORE, BE IT RESOLVED by the Port and Commerce Advisory Board that: Section 1. The following List of Priorities through December 2017 is hereby approved by the Board and recommended to Council for their approval: PRIORITIES 1. Review information provided by administration and make recommendations to Council regarding vessel property tax. 2. Provide review and recommend changes to the Harbor Tariff. 3. Identify needed support, strategies incentives and measures that will support industries including the CDQ fleets and related but not limited to. Oil & gas, transportation including Seward Airport, and commercial fishing. 4. Review and make recommendations to the Seward Marine Industrial Center (SMIC) Development Plan. 5. Council designate PACAB for initial vetting of energy options 6. Provide review and recommendations for the South Harbor Uplands Development Plan. Section 2. This resolution shall take effect immediately upon its adoption. 74 Port and Commerce Advisory Board Resolution 2016- Page 2 of 2 PASSED AND APPROVED by the port and Commerce Advisory Board this 51h day of April, 2017. THEMY OF SEWARD, ALASKA O�f6l Schaefe ever, Chair AYES: Terry, Hughes, Linville, Andrews, Lawrence and Schaefermeyer NOES: ABSENT: Jaffa ABSTAIN: VACANT: ATTEST: �9&kLt J anna Ki tty Clerk, CMC (City Seal) 1 1 1 Sponsored by: Planning and Zoning Commission CITY OF SEWARD, ALASKA RESOLUTION 2017-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA ADOPTING THE PLANNING AND ZONING COMMISSION PRIORITIES FROM APRIL 2017 TO APRIL 2018 WHEREAS, at the February 21, 2017 work session the Planning and Zoning Commission reviewed their Priorities List; and WHEREAS, the Seward City Council Rules of Procedure, adopted March 14, 1994, state that the Council should meet in an annual joint work session with the Commission to address areas of mutual concern; and WHEREAS, the Commission and Council held a joint work session, reviewed and updated the Planning and Zoning annual Priorities List on March 6, 2017; and WHEREAS, at the April 4, 2017 meeting the Planning and Zoning Commission approved Resolution 2017-03 recommending Council adoption of the 2017 Planning and Zoning Priorities as listed. NOW, THEREFORE, BE IT RESOLVED by the CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The following List of Planning and Zoning Priorities for April 2017 through April 2018 are hereby adopted: Priorities Short and Medium Term 1) Assist with the completion of the City of Seward Comprehensive Plan Update. 2) Review Camping Code update. 3) Communication tower education / work session with an industry expert. (Hold jointly with City Council, if possible.) 4) Explore available funding / policy for infrastructure development. 76 CITY OF SEWARD, ALASKA RESOLUTION 2017-026 5) Review the Lodging Code. Continuing 1) Continue to pursue compliance with the Seward City Zoning Code by prioritizing the outstanding health and safety issues, such as snow removal, illegal camping, junk vehicles, etc. 2) Seek additional funding for Planning & Zoning Commissioner training. • Search out and add funding to the budget • Maintain a Commissioner training calendar Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of Seward, Alaska this 24th day of April, 2017. AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor 77 Council Agenda Statement Meeting Date: April 24, 2017 To: City Council Through: Ron Long, Assistant City Manager Donna Glenz, Planner From: Dwayne Atwood, Planning Technician Agenda Item: Resolution Adopting the Planning and Zoning Commission Priorities from April 2017 to April 2018. BACKGROUND & JUSTIFICATION: Annually, the Planning and Zoning Commission establishes their priorities. The Commission began this year's process by reviewing their Priority List at their February 21, 2017 work session in preparation of their joint work session with Council scheduled for March 6, 2017. During the joint work session, the Commission and Council reviewed and updated the Planning and Zoning Priorities List. At their April 4, 2017 meeting the Planning and Zoning Commission approved Resolution 2017-03 recommending Council adoption of the Commission's April 2017 to April 2018 Priority List. CONSISTENCY CHECKLIST: Comprehensive Plan: Most of the priorities which the Commission Yes No N/A 1. wishes to work on are an outgrowth of goals and objectives established in X the Comprehensive Plan. Strategic Plan: The Strategic Plan also identifies many of the priorities 2 addressed by the Commission. Planning and Zoning Rules of Procedure: Rule 34 (c.) "The X Commission shall meet in a joint work session with the City Council in 3 March of each year to discuss areas of mutual interest." X INTENT: Adopt the April 2017 through April 2018 Planning and Zoning Priorities List. FISCAL NOTE: The City will have no costs associated with the approval of the Planning and Zoning Priorities List. Approved by Finance Department: in - ..� ATTORNEY REVIEW: Yes: No: N/A X RECOMMENDATION: Approve Resolution 2017-026 adopting the Planning and Zoning Commission Priorities from April 2017 to April 2018. w Sponsored by: Planning and Zoning Commission CITY OF SEWARD, ALASKA PLANNING AND ZONING COMMISSION RESOLUTION 2017-03 A RESOLUTION OF THE SEWARD PLANNING AND ZONING COMMISSION OF THE CITY OF SEWARD, ALASK.A, RECOMMENDING CITY COUNCIL APPROVAL OF THE PLANNING AND ZONING COMMISSION PRIORITIES FROM APRIL 2017 TO APRIL 2018 WHEREAS, at the February 21, 2017 work session the Planning and Zoning Commission reviewed their Priorities List; and WHEREAS, the Seward City Council Rules of Procedure, adopted March 14, 1994, state that the Council should meet in an annual joint work session with the Commission to address areas of mutual concern; and WHEREAS, the Commission and Council held a joint work session, reviewed and updated the Planning and Zoning annual Priorities List on March &, 2017; and WHEREAS, at the April 4, 2017 meeting the Planning and Zoning Commission reviewed the Planning and Zoning Priority List. WHEREAS, Council will address a resolution adopting these recommendations. NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning Commission that: Section 1. The following List of Planning and Zoning Priorities is hereby approved and recommended to Council for their adoption: Priorities Short and Medium Term 1) Assist with the completion of the City of Seward Comprehensive Plan Update. 2) Review Camping Code update. 31 Communication tower education 1 work session with an industry expert. (Hold jointly with City Council, if possible.) 79 Seward Planning and Zoning Commission Resolution 2017-03 Page 2 of 2 4) Explore available funding 1 policy for infrastructure development. 5 } Review the Lodging Code.. Conflimin�; 1) Continue to pursue compliance with the Seward City Zoning Code by prioritizing the outstanding health and safety issues, such as snow removal, illegal camping, junk vehicles, etc. 2) Seek additional funding for Planning & Zoning Commissioner training. • Search out and add funding to the budget • Maintain a Commissioner training calendar Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the Seward. Planning and Zoning Commission this 4th day of April, 2017. THE CITY OF SEWARD, ALASKA Martha Fleming; N4ce Chair AYES: Ambrosiani, Seese, Anderson, Fleming NOES: None ABSENT: Ecklund, Swann, Carlton ABSTAIN: None VACANT: None ATTEST: r 34nna Ki ey, Cit Clerk 1 L P&Z Agenda Statement Meeting Date: April 4, 2017 To: Planning and Zoning Commission Through: Ron Long, Assistant City Manager Donna Glenz, Planner From: Dwayne Atwood, Planning Technician Agenda Item: Resolution Adopting the Planning and Zoning Commission Priorities from April 2017 to April 2018. BACKGROUND & JUSTIFICATION: Annually, the Planning and Zoning Commission establishes priorities. The Commission began this year's process by reviewing their Priority List at their February 21, 2017 work session in preparing for a joint work session with Council March 6, 2017. During the joint work session, the Commission and Council reviewed and updated the Planning and Zoning Draft Priorities List. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: Most of the priorities which the Commission 1. wishes to work on are an outgrowth of goals and objectives establ i shed in X the Comprehensive Plan. 2. Strategic Plan: The Strategic Plan also identifies many of the priorities addressed by t he Com m i ssi on. X Planning and Zoning Rules of Procedure: Rule 34 (c.) "The Commission shall meet in ajoint work session with the City Council in 3 March of each year to discuss areas of mutual interest." X RECOMMENDATION: Approve Resolution 2017-03, recommending City Council approval of the Planning and Zoning Commission Prioritiesfrom April 2017 toApril 2018. HI City of Seward, Alaska April 4, 2017 Planning Commission Minutes Volume 7, Page 225 Resolution 2017-03 of the Planning and Zoning Commission of the City of Seward, Alaska recommending the City Council approval of the Planning and Zoning Commission priorities from April 2017 to April 2018 Motion (Ambrosiani/Anderson) Approve Resolution 2017-03 Glenz stated the history of the work sessions leading up to the establishment of the annual priorities. Staff recommended adoption of the priorities as listed. " Commissioners questioned aspects of the Camping Code and how the Commission would be involved in any amendments. Glenz cited the history of earlier revision efforts and oportions of the Cityde that provided guidance on camping. The Community Developm/pift Department and the Clerk's office worked on the Camping Code, but priorities changkid, when staff was directed to work on the Mobile Vendor Code, Glenz said. Other priorities, iffbfuding the,,,Comprehensive Plan update, had taken energy away from revising the Camping Cody Benz further explained some of the camping issues that resulted in complaints; from the public. Glenz said staff would bring forward a revision to the,Camping Cod, U the near future. i Motion Passed Unanimous'''" MN Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT WITH ARCTIC ELEVATOR COMPANY LLC, FOR MODERNIZATION OF THE CITY HALL ELEVATOR IN THE AMOUNT OF $86,300.00 AND APPROPRIATING FUNDS WHEREAS, the City Hall Elevator is currently obsolete and not operational; and WHEREAS, repeated failures, repairs and expenditures called for an overall evaluation of the unit, and each qualified firm consulted concluded that many parts necessary for this unit are no longer produced and that a complete overhaul, including modernization of the electrical controls and electronic controller system is necessary for safety and reliability; and WHEREAS, three proposals were received for modernizing the City Hall elevator, and Artie Elevator Company LLC, provided the most qualified and responsive proposal; and WHEREAS, The Arctic Elevator Company LLC, proposal $86,300.00 for a "Turn Key" modernization of controls and electronic elevator components includes the elevator recall fire alarm system cost of $11,630.00. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council determines it to be in the public's interest to use Arctic Elevator Company LLC for the repair; and authorizes the city manager to enter into a purchase agreement with Arctic Elevator for an amount not to exceed $86,300.00. Section 2. Funding in the amount of $86,300.00, is hereby appropriated from the General Fund net assets account no. 01000-0000-3400 to the City Hall building account no. 01000-1350- 8102. Section 3. This resolution shall take effect immediately upon adoption. 11 CITY OF SEWARD, ALASKA RESOLUTION 2017-027 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 241h day of April, 2017. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) Meeting Date: To: Through: From: Agenda Item: Agenda Statement April 24, 2017 City Council Jim Hunt, City Manager a'v Doug Schoessler, Public Works Director Modernization City Hall Elevator, for the amount not to exceed $86,300.00 from Arctic Elevator Company LLC. BACKGROUND & JUSTIFICATION: The City Hall elevator is not operational; several repairs large and small have been done in the past, culminating in this latest breakdown. Three elevator companies have inspected the elevator and provided proposals. All three companies concluded that a full modernization is needed due to the age of the elevator and the lack of parts available to fix it. The Arctic Elevator Company LLC proposal is a "Turn Key" proposal including code related work; the other proposals excluded those costs as "work by others". INTENT: Authorize the City Manager to enter into an agreement with Arctic Elevator Company LLC, to make the City Hall elevator accessible and reliable by doing a full "Turn Key" modernization, for an amount not to exceed $86,300.00. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): ADA Facility Plan 3.7.3.3 X 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: Funding for this purchase will be from the City Hall building account, requiring an appropriation since the current budget did not anticipate this cost. Approved by Finance Department: u ATTORNEY 107VIEW: Yes No X Not Applicable RECOMMENDATION: City Council approve Resolution 20I7-027, authorizing the expenditure of $86,300.00 to modernize the City Hall elevator. X AGENDA STATEMENT Meeting Date: April 24, 2017 From: Johanna Kinney, City CL;'s. Agenda Item: Non -Objection to the Renetixal of Package Store Liquor License #4334 for Oaken Keg #2728 BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the renewal of a Package Store Liquor License #4334 for Oaken Keg #2728. 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 this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license renewal, 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 renewal of Package Store Liquor License #4334 for Oaken Keg #2728. q[1►5K� MEMORANDUM Date: March 14, 2017 To: Naneth Ambrosiani Finance/Leases Angela Ebberson Finance/Public Utilities Chief Tom Clemons Police Department Chief Eddie Athey Fire Department From: Brenda Ballou. Deputy City Clerk I�v RE: Verifying Compliance for the Renewal of Liquor License The following business has applied for a renewal of their liquor license. Please review for compliance with all utilities, lease payments and assessments. Thank you. Name of Business Type of License: License Number: Oaken Keg : 2 728 Package Store 4334 Department Status Initials Finance/Leases CCr1'} iIG{L�f 4oPi Finance/Utilities 00 Police Chief Fire Chief F i- / ® UM yr 3/7031- '0g114 m KENAI PENINSULA BOROUGH �r 144 North Binkley Street • So�dotna Alaska 99669_7520 PHONE (907) 714-2160 • FAX (907) 714-2388 <„ Toll -free within the Borough 1-800-478-4441 Ext 2160 Email assemblyclerk@kpb.us + JOHNI BLANKENSHIP, MMC BOROUGH CLERK. April 7, 2017 Ms. Sarah Daulton Oates Records & Licensing Supervisor Alcohol & Marijuana Control Office 550 West 71h Ave, Suite 1600 Anchorage, AK 99501 RE: Non -Objection of License Renewal Business Name Oaken Keg #2728 License Type Package Store License Location City of Seward License No. 4334 Dear Sarah, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please do not hesitate to contact our office. Sincerely, lohni Blankenship, MMC Borough Clerk cc: Applicant City of Seward KPB Finance Department File MM j HE Sr: TF Department of Commerce, Community, ,ALASKA and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7"' Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 March 14, 2017 City of Seward Attn: Brenda Ballou & Johanna Kinney, City Clerks VIA Email: bballou@cityofseward.net ikinney@cityofseward.net Cc: ioanne@borough.kenai.ak,us jblankenship@borough.kenai.ak.u� kring@borough.kenai.ak.us Re: Notice of 2017/2018 Liquor License Renewal Application License Type: Package Store License Number: 4334 Licensee: Carr-Gottstein Foods Co. Doing Business As: Oaken Keg #2728 We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS O4.11.480, A local governing body may protest the approval of an application(s) pursuant to AS O4.11,480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Jedediah Smith, Local Government Specialist amco.locaigovernmentonly@alask_a_..gov Alaska Alcoholic Beverage Control Board Renewal License Application Form AB-17b: Package Store What is this form? Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99541 Phone 907-269.0350 This renewal license application form is required for ail individuals or entities seeking to apply for renewal of an existing package store license that will expire on December 31, 2016 All fields of this form must be complete and correct, or the application will be returned to you in the manner in which it was received, per AS O4.11.270 and 3 AAC 304,105 The Community Council field only needs to be verified/completed by licensees whose establishments are located within the Municipality of Anchorage or outside of city limits within the Matanuska-Susitna Borough. This form must be completed correctly and submitted to the Alcohol & Marijuana Control Office (AMCO)'s main office, along with all other required documents and fees, before any renewal license application will be considered complete. Section 1 — Establishment and Contact Information Enter information for the business seeking to have its license renewed. Licensee: Carr-Gottstein Foods Co. License #: 4334 License Type: Package Store Statute: AS O4.11,150 Doing Business As: Oaken Keg #f2728 Premises Address: 1907 Seward Hwy Local Governing Body: City of Seward (Kenai Peninsula Borough) Community Council: None Mailing Address: SAFEWAY INC MS #6531 TAX NASC City: PO BOX 29096 State: ZIP: PHOENIX, AZ 85038-9096 Enter information for the , k , ,.,ni hn rlocivnararl as the nrimary point of contact regarding this application and the license. Designated license( Carrie Town Contact Phone: CONTACT P: 623-869-3573 iness Phone: Contact Email: Carrie.Town@Safeway.com 1 Yes N Seasonal License? ❑ If "Yes", write your six-month operating period: (Form AB-17b) (rev 10/25/2016) Page 1 of 5 90 5� drirrar rtit'�'r Alaska Alcoholic Beverage Control Board Renewal License Application Farm AB-17b: Package Store Alcohol and Marijuana Control Office 550 W 7'"Avenue, Suite 1600 Anchorage, AK 99541 Phone 907 269 0350 Section 2 - Sole Proprietor Ownership Information This section must be completed by any sole proprietor who is applying for a license. Entities should skip to Section 3. If more space is needed, please attach a separate sheet with the required information. The following information must be completed for each licensee and each affiliate (spouse). This individual is an: El applicant ❑ affiliate Name: Address: City: State: ZIP: Email: Contact Phone: This individual is an: D applicant ® affiliate Name: Address: City:. State: ZIP: Email:. Contact Phone: Section 3 - Entity Ownership Information This subsection must be completed by any licensee that is a corporation or LLC. Corporations and LLCs are required to be in good standing with the Alaska Division of Corporations (DOC). Partnerships may skip to Page 3. Sole proprietors should skip to Section 4. Alaska DOC Entity it: I } r- I,- I U I Alaska Division of Corporations; Yes No Is your entity in good standing with the Alaska Division of Corporations] 77 F7 [Form AB-17bi (rev 10/25/2016) Page 2 of 5 91 Alaska Alcoholic Beverage Control Board Renewal License Application Form AB-17b: Package Store Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 Phone 907,269,0350 This subsection must be completed by any entity including a corporation, limited liability company (LLC), partnership, or limited partnership, that is applying for renewal. If more space is needed, please attach additional completed copies of this page. • If the applicant is a corporation, the following information must be completed for each stockholder who owns 10%ormore of the stock in the corporation, and for each president vice-president secretary, and managing officer. • If the applicant is a limited liability organization, the following information must be completed for each member with an ownership interest of 10% or more, and for each manager. • If the applicant ii a ,partnership, including a limited partnership, the following information must be completed for each partner with an interest of 10% or more, and for each general partner. Entity Official: Title(s): No Stockholders owning >10% Address: City: **SEE ATTACHED OFFICERS LIST I Phone: I I% Owned: I I I State: I I ZIP: I I Entity Official: Title(s): Phone: % Owned: Address: City: State: ZIP: Entity Official: Title(s): Phone: % Owned: Address: City. State: ZIP: Entity Official: Title(s): Phone: % Owned: Address: City: State: ZIP: Entity Official: Title(s): Phone: % Owned: Address: City: State: ZIP: [Form A®-17b] (rev 10/25/2016) Page 3 of 5 . .7 i Y -92 Alaska Alcoholic Beverage Control Board Renewal License Application s,� • h..., ' Form AB-17b: Package Store Section 4 — Authorization Communication with AMCO staff: Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 C ,�.: t ate_ r. Phone: 907269 0350 Yes No Does any person other than a licensee named in this application have authority to discuss this license with U AMCO staff? U If "Yes", disclose the name of the individual and the reason for this authorization: Section 5 - License Operation Written Orders: Yes No Did you sell alcoholic beverages in response to a written order in calendar years 2015 or 2016? b 7 Check the box that best describes your liquor license operations in calendar years 2015 and 2016. The license was regularly operated continuously throughout each year, for 8 or more hours each day. The license was regularly operated during a specific season each year, for 8 or more hours each day. 0 The license was only operated to meet the minimum requirement of 30 days each year, 8 hours each day. if this box is checked, on AMCO employee will contact you after reviewing your application. The license was not operated at all or was not operated for at least the minimum requirement of 30 days Q each year, 8 hours each day, during one or both of the calendar years. If this box is checked, an AMCO employee will contact you after reviewing your application. Section 6 - Convictions Aicant convictions in calendar years 2015 and 2016: Yes No Has any person named in this application been convicted of a violation of Title 04, of 3 AAC 304, or a local ordinance adopted under A5 04.21.010 in the calendar years 2015 or 2016? If "Vac" Pict All ennuirtinnc• [Form AB -lib] (rev 10/25/2016) Page 4 of 5 93 e 1 Alaska Alcoholic Beverage Control Board Renewal License Application Form AB-17b: Package Store Section 7 — Certifications Read each line below, and then sign your initials in the box to the right of each statement: Alcohol and Marijuana Control office 550 W 7 ° Avenue, Suite 1600 Anchorage, AN 99501 "ti' v cl 2' Phone: 907,269,0350 I certify that all current licensees (as defined in AS 04.11.260) and affiliates have been listed on this application, and if the licensee is an organized entity, that all current entity officials and stakeholders are listed with the Alaska Division of Corporations. I certify on behalf of myself or of the organized entity that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revocation of any license issued. I certify that in accordance with AS 04.11.450, no one other than the licensees) has a direct or indirect financial interest in the licensed business. I certify that I have not altered the functional floor plan or reduced or expanded the area of the licensed premises, and I have not changed the business name or the ownership (including officers or stakeholders) from what is currently on file with the Alcoholic Beverage Control Board Initials I certify that I have not violated any restrictions pertaining to this particular license type, and that this license has not been operated in violation of a condition or restriction imposed by the Alcoholic Beverage Control Board. /El As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 304, and that this application, including all accompanying schedules and statements, is true, correct, and complete. I agree to provide all information required by the Alcoholic Beverage Control Board in support ication and understand that failure to do so by any deadline given to me by AMCO staff will result in this application bei ret ed to a as incomplete. Signature of licensee 0or, li luhnsin' Printed name of licensee Signature Notary Public •,�{{ ''11 -�� in a r the State of V .W JULIE L SWANEY -I Notary Public • Arizona � • f`•, Maricopa County My commission expires C 5. 1 ' My Comm Expires Mar 3. 2020 Subscribed and sworn to before me this day of 2D License Fee: 5 1500.00 Filing Fee: $ 200.00 TOTAL: $ 1700.00 Late Fee of -- if received or postmarked after 01/03/2017: Miscellaneous Fees: GRAND TOTAL (if different than TOTAQ: (Form All (rev 1C/25/2016) Page 5 of 5 I .-94 MEMORANDUM Meeting Date: April 24, 2017 From: Johanna Kinney, City Clerk Agenda Item: Discuss ideas for Celebrating the 50th Anniversary of the Seward-Obihiro Sister City Relationship in 2018. BACKGROUND & JUSTIFICATION: Obihiro, Japan has been Seward's Sister City since 1968. The two cities have participated in a student exchange since 1973. Seward and Obihiro exchange correspondence each year, as well as trophies for our respective community events. In 2018, the two cities will reach 50 years of friendship. The City of Obihiro has reached out to the City Clerk's Office to see if there is interest in participating in some kind of event. At the February 27, 2017 meeting, the Seward City Council indicated they would be interested in hosting guests and sending delegates in Seward and Obihiro, respectively, in addition to a gift exchange of some kind to celebrate this milestone. Past celebrations have typically centered on invitations to host and send a certain amount of delegates, with the expectation that once guests have arrived, the host city will provide lodging (sometimes homestays), transportation, and meals. The guests are responsible for airfare. The City of Obihiro would like to secure some kind of plan for their budget planning in May -June of this year. If possible, we would like to obtain some logistics at this meeting to convey to our friends in Obihiro for planning and budgeting purposes. Hosting a delegation: • How many people would the City like to invite to Seward? The City of Obihiro has indicated they can be very flexible in how many people they can send. • Does the City want to offer lodging, food, transportation, activities once the delegation is in Alaska? This is the typical invitation style our two cities have followed over the years. • What time of year would the city like to host a delegation? Obihiro has expressed interest in visiting during the Silver Salmon Derby and we feel more activities and businesses are available during this time of year. ILI Sending a delegation: • If extended an invitation, how many people would the City like to send to Obihiro? • How would the City like to select the delegation? What travel is the City willing to pay for? It is likely the City would be requested to pay for airfare. • Is there any time of year you would like to suggest? Attached is a list of events scheduled throughout the year in Obihiro. • Would the City be interested in arranging a side trip to our Port City of Kushiro, Japan? Airfare to Obihiro can vary year to year, and also depending on time of year. The last few years, prices have varied from $1,600 to $2,400 a person. Gift Exchange: • The City Clerk's Office is comfortable handling the gift exchange, if the Council agrees. Any suggestions or parameters are welcome; the intent would be to give something comparable to what the City would receive from Obihiro. RECOMMENDATION: Direct the City Clerk to continue communications with the City of Obihiro and send an official invitation on behalf of the City of Seward. Direct the City Clerk to prepare a budget for this event in the FY 2018 budget. •M Obihiro Ice Festival 1. *1-D9 Great Tokachi Plain International Cross Country 'Ski Race Obihiro Cherry Blossom Festival 13177jh Zt79 Obihiro-no-Mori Arbor Day Festival Yachiyo Ranch Festival )l T-I01)c1- t --) 9 Iwanai Gorge Free the Salmon Festival Nills -p I —4AWA Poroshiri Music Festival e,t3� /9 06% Tokachigawa Raft Festival +001 � t �(-F 6) Green Frontier Festival :/. 713JT-f-7 - 7sX--T Obihiro Tanabata Festival 10 M-L92 )9 Evening Breeze Fireworks Festival M91EskAl2;'; Heigen Matsuri T-J9 I -,) 9 Love Road Festival 7� - A— l4 • 7-T— ( /i1L Stomp the Green EarthFest Obihiro-no-Mori Forest Appreciation Day 1 :0) a _6li #ft R1 Iwanai Gorge Crimson Leaves Festival * A fill 0 b,& U I --) 9 Obihiro Chrysanthemum Gala UA Tokachi Tourism and Special Products Festival -FNjO QA L Ui� I --) 9 97 `see page 22 OBIHIRO EVENTS Obihiro Ice Festival * • Festival honors winter • Held in Obihiro • Snow slides and snow mazes (children) • Singing performances, sleigh and snow raft rides, food area (adults) • Local citizens make snow statues and ice sculptures (about 56 in all) • Fireworks show on the eve of the festival at the opening ceremony • Held late January — early February Heigen Festival * • Largest summer festival • Held in Obihiro • First night of festival is a big dance with a portable shrine • 2"d and 3rd nights are 2-hour long Bon Dance in the streets • Fireworks • Held 2"d weekend of August Ikeda Autumn Wine Festival • All you can drink Tokachi wine and all you can eat Tokachi beef • Festival to celebrate grape harvests • Attended by 5,000 visitors • Held 1st Sunday in October Chrysanthemum Festival * • Displays of thousands of chrysanthemums • Held in Tokachi (Obihiro) • Traditional Japanese dancing and koto playing (Japanese harp) and a traditional tea ceremony • Held late October — early November * One of the three largest events held in Obihiro each year 98 Welcome to Obihiro Obihirc is located in the center of the great, flat Tokachi Plain with the Taisetsu Mountains on the north and the Hidaka Mountain Range on the west. The city has a population of approximately 170,000 and a total land area of 618.94 krri. View nature's grandeur in the area's clear blue sky, pristine water and clean air. These natural blessings create an abundance of agricultural produce in this "breadbasket" of Japan. Two nationally famous products are the "May Queen' potato of Taisho and the nagaimo (Japanese mountain yams) of Kawanishi. Dairy products, pastries, meats etc. made from high quality local ingredients are the pride of the area. Obihiro protects its abundance of nature while aiming to develop itself and become the core city of Tokachi where one can truly feel that abundance. Plenty of tasty dishes! -------------------- Famousfoods ofTokachl are plentiful in these excellent food stands that use fresh local ingredients. With 20 different stands in a 50 meter long space, these mini restaurants have an at-home atmosphere and everyone sits shoulder to shoulder, so it's easy to make new friends. - Contact: Kita no Yatai Startup Area Coop. Address: West i South 10-7, Obihim TEL: 0155-23-8194 Hours: 10:00-17:30 "Hours differ from shop to shop but generally fall between 18:00 and 24:00 http://www.kita noyatai.com/yatai3ki/I iyephoto96203 kibtm Butadon Obihiro is the birthplace of this exceptional dish of white rice topped with delicious - / grilled pork slathered In " secret sauce. Pastries and Sweets +r ' Jmgisukan delicious sweets, has delicious Obihiro, known as the city of' Many Obi inJinis restaurant, speclocal ingredients, and its pastry (lamb me t) lin taiple f shops are always making new (Iamb meat); a staple ofthe and original pastries. Tokachi flavorful Hokkaido diet. sweets s always make great souvenir Help your self to Tokachi's blessings from the land Meatprod— Dairy Products agricultural products Tokachi Tourism Product Center Tourism information 0155-23-6403 Product information 0155-22-7666 * Obihiro Tourism Convention 0155-22-8600 Tokachi Tourism Association 0155-22-1370 Obihiro Produce Association 0155-22-7666 (Tokachi Produce Center) Tokachi Obihiro Airport Tourist Info Desk 0155-64-4078 Obihiro-Tokyo Office 03-3581-2415 * Obihiro Int'I Relations Section 0155-65-4169 ACCESS to Obi him 210 km 4hrs ®Sapporo Kushiro to Obihiro 120 km 2 hrs 10 min By Car Asahikawa to Obilbro 180 km 3hrs 30 min Cape Erimo to Obffilm 130 km 2hrs 30 min to Obihim(Potato Liner) 4hrs ®Sapporo *Station Terminal TEL 0155-23-3489 By Bus Kushiro to Obihiro(Suzuran Go) 2hrs 25 min *Station Terminal TEL 0155-23-5174 Asahikawa to Obihiro (North Liner) 3 hrs 40 min "Takushoku Buses TEL 0155-31-8811 New Chitose Airport(Tokachi Milky Liner) 3hrs 30 min "Obiun Tourism TEL 0155-36-5500 Sapporo to Obihiro (shortest trip time 2 hrs 10 min) Kushiro to Obihiro (shortest trip time 1 hr 25 min) By Train Asahikawa to Obihiro (shortest trip time 3 hrs 35 min) JR Obi Iniro Station TEL 0155-23-8175 tram info) TEL 0155-23-3813 (reserve tickets) ©Haneda Airport to Tokachi-Obihim 1hr 30 min Nagoya Komaki Airport to Tokachi-Obihiro 1hr 40 min By Plane Cal lnt'I Airport to Tokachi-Obihiro 2 hrs 15 min(seaeona0 Japan Airlines TEL 0120-25-5971 Obihiro Tourism Convention Inc. Food and Drink, Lodging Info, Sightseeing, Butadon, Pastry Shops, Hot -spring Day Trips o, Tokachi Tourism Association I] Event Info, About Tokachi, Sightseeing Facilities, It Transportation Info, Butadon Guide Ot + * = We can speak English! Obihiro Tourism Convention Homepage http://www.obikan.jp Ban'ei Horse Racing o . f t' i I 5d7is � %►z4 ` fib` a "Banei Horse Racing'was born in the Meiji Era (around the 1860's), from the comp itions Hokkaido's pioneer farmers had making their workhorses pull loads of rice bales or I s. Ban el is unique in all the world. It differs from other horse races because along with speed, the h ses also need power, explosiveness, and endurance. Every race will keep you on the edge of your seat. Green Park - Midorigaoka Park Green Park was once recorded in the Guinness Book of World Records for its long bench. People can relax and learn atthe Obihiro Centennial Museum, the 0bihim Zoo, and the Hokkaido-Obihiro Museum of Art; all of which are on Midorigaoka Park grounds. Children can also enjoying playing on the new playground. Iwanai Gorge - Iwanai Nature Village On the very southern tip of Obihim, the rugged ravines of the Iwanai Gorge are nestled at the foot of the Hidaka Mountains. This is one of Hokkaidos best areas for viewing the colors of autumn. Mid October is the best time for viewing the changing leaves, and every year the Iwanai Gorge Autumn Festival is held on the second Sunday in October. In spring the cherry blossoms and the azaleas bloom, and there is a campground and park golf course nearby to enjoy. Ban'ei Tokachi Oblhiro Horse Race Track Address: West Tajo South 9 chome, Obihiro TEL 0155-34-0825 Pa rking capacity: 2,200 Entrance fee:¥ 100 Normal race days: (Sat. Sun. Mon.) Opens at 940 First race at l l:00 Final race at 17:00 Nighters (Fri. Sat. Sun.) Opens 13.10 First race 14:30 Final race 20.35 —race days maychangeso please inquire to—Rou details http://www.banei kelba.or.jp Horse Museum Th s small museum was created to teach about Tokzchis pioneering period. It has exhibits of horse equ pment and p ctures of work horses that were used during thattme period, in addition to manyother interesting objects. For more info:TheTokachi Agricultural Co-op Address: West 13jo South 9 chome, Ob hiro (in race track parking lot) TEL: 0155-24-2169 Entrance fee: 1F 20D. n High & younger Y 100 Hours: 10:00 to 16,00 (only on days the race track Is open) Manabe Garden Conifer trees covera large part of this nearly 80,000 ni garden. You can enjoy various Japanese and Western style gardens, and coming in autumn will give you a superb view of the changing colors of the Ieaves.There s a plant shop and a cafa terrace as well. Address, Inada-cho East 2 sen 6, Obihiro TEL 0155-48-2120 Entrance fee: Adult Y 500 Jr. High & younger tF 200 Open: Everyday (end of Apr to end of Nov) Hours: 8.00-17:00 hup //www.manabegarden.jp Shichiku Garden Yuka Season by season, this garden displays the beauty of over 2,500 types of flowers on its expansive grounds. The English Garden and the Wildflower Garden made up of Hokkaido's wild flowers, are the cornerstones of Shichiku Garden and are a must see. There is a restaurant and shop here as well. Address: Bie-cho West 4 sen 107,Oleihiro TEL: 0155-60-2377 Entrance fee: Adult Y 500 Jr. High & younger Y 200 Open: Everyday (end of Apr to end of Nov) Hours: 8:00-17:00 hup:/Iwww.4.ocn.ne.jp/-shichiku/ For more information contact: Nino also Kogyo LTD. Address: Iwanai-cho 70, Obihim TEL: 0155-24-2700 On -site Maintenance Office TEL:0155-60-2063 Nature Villages open from June 1 to Oct 31. Closed every Monday except during summer ObihiroTourism Convention Hlomepage http://www.obikan.jp 1 1 1 1 1 1 fr; In 1973, Aikoku Station and Kofuku Station were introduced on the NHK Country to Happiness`(aikoku roughly translates to"love country"and p •.; B\ 'd television program "New Japan Travels' under the title"A trip to happiness: kofuku means "happiness°)Ia four years, 10 million tickets were sold for N o \+p Obihiro. Thanks to that broadcast, the sale of tickets from Aikoku Station to the trip between Aikoku Station and Kofuku Station. In Feb 1987, the rail ie AAA Kofuku Station became hugely popular with the. catch phrase" From Love line was discontinued, but tourists continue to stream in today. Former Kofuku Station (kofuku means "happiness' in Japanese) Drawn by this station's name, many people visit hereto pray for happiness. The station is famous for being very romantic, with visitors' messages pinned all over the walls. The wooden station building, the wood floored Platform, and two diesel train cars are preserved here exactly as they were in old times."Happiness"souvenirs are also popular. Address: Kofuku-cho East 1 sen 161, Chino (there is a small post office at the entrance) Entrance and Parking: Free TEL 0155-64-4007 Mobile:090-7646-1291 Open: basically everyday 8:00-18:00 Closed: From Nov, until the snow melts in Mar. v MIMI Come send a message to 33=s that special someone in Former Aikoku Station (aikoku means"love country" In Japanese) Aikoku Station was once on the national railway; the Him Line. Currently there are tickets, panels and uniforms (that were actually used attire time) on display here. There is also a steam locomotive preserved on site. Everyone should visit here at least once, even if they aren't a railroad fanatic. Address: Aikoku-cho kisen 39AO, Obihim Entrance and Parking: Free Hours: 9:00-17:00 Open: Everyday from Mar to Oct. Sundays only from Dec to Feb TEL: 0155-64-4121 your life and ring the "Happiness Bell"together. Any pair of two people can make wonderful memories at this - wedding -like event. Held every day from end of Apr. to end of Sep. Hours: 10:00-16:00 (must apply by 15:00) Apply to the Happy Ceremony Coordinator Mobile: 090-1646-6318 Fee: Y 3000 (includes clothing rental, souvenir) Length of ceremony: 30 minutes For more info call: 0155-65-4169 Heigen Festival Chrysanthemum Festival Ice Festival This is the biggest summer festival in all ofTokachil On the first night ofthe festival there is a big dance and an omikoshi (portable shrine) ceremony called "Yume-furu-ya"(the night offalling dreams). A large omikoshi dances through the streets to the pounding of huge taiko drums, while shouting youth lift it to the night sky. Come throw a golden stalk of wheat into the omikoshi and your wishes will come true! The two hour long "Bon Dancing"in the streets is a must see on the 2nd and 3rd nights of the event. Carefully designed costumes, floats, and dances captivate onlookers at this, the finale of the festival. Event Calendar The Chrysanthemum Festival features a Chrysanthemum exhibits that display a thousand painstakingly nurtured, large -blossomed chrysanthemums along with thousands of other chrysanthemums that fill the event with extravagance that Is hard to find anywhere in Japan.Visitors can enjoy traditional Japanese dancing and koto (Japanese harp) performances and a traditional tea ceremony. There will also be a market where visitors can buy plants at low prices as well as other goods from Obihim's sister cities, Tokushima and Oita. Come and enjoy our flowery autumn festival. Cherry Blossom Festival '] v Tanabata Festival Ice Festival Yachiyo Farm Festiva 0 Kachimai Fireworks Tokachi Raft Run •HOgen Festival • Doshin Fireworks Lightof Ob'h'ro: Symbol Zone He'gen Luca Taisho May QPotato Festival 0 0 yvansi Gorge Autumn Festival (from 23 November to 14 February) • Chrysanthemum Festival Jolllllll Kofrkt Staton Happy Ceremony.. n�-do,gp. to h, erJOI.,I nbe; Despite the freezing cold winter weather, the people of Obihim come together to create a beautiful and fantastic world of big and small ice and snow sculptures, ice masks and ice candles. Winter fireworks color the night sky, while children speed down the popular snow slides and wander through snow mazes. There are plenty of things for adults to enjoy as well, such as singing performances, sleigh and snow raft rides, and a food area where visitors can enjoy warm foods to melt away the cold. Come enjoy all the sights, sounds and flavors of this festival! c Obihiro's Climate oe,a­w.,,n.,:,.,�onr:wa 20..._..... ................... .............. .....................,.. 10............................. ...._ ........ ............................... ... ................ 0.......:....... ...... ........................................................._ ..... ..._... -10.......... .................. .... ... ........ 20 1 2 3 4 5 6 7 8 a 9# 10 11 12 uomm 101 MEMORANDUM TO: City Council FROM: Johanna Kinney, City Clerk DATE: March 21, 2017 RE: City projects and goals - REVISED The following list of City Council projects and goals was reviewed and discussed at the March 20, 2017 City Council Work Session, and revised as follows: 1. New ADA accessible parking location on west side of City Hall' 2. Set location for Satellite Fire Station and Public Works Building 4. Discussion on Air Force Rec Camp Site 4 -5-. 14ar- ., 6. Saltwater Heat Pump Project 7. Energy Efficiency of City Hall 8. Ground Transportation for Ambulance Services 9. Animal Shelter Improvements 4 10. City Hall Elevator 4 11. Research elected/appointed official tele-conferencing possibilities for meetings 3 12. Refine Executive Session Procedures 3 13. Update the KPB Tsunami Warning message to include specific reference to the local radio station (91.7/106.1) 14. Lncentivize family entertainment -type businesses to come to Seward 4 15. Affordable Housing (including Summer Worker Housing)' 16. Develop South Harbor Uplands 17. Seward Community Health Center Expansion 18. Building Maintenance 2 19. LED Light Conversions 1 Potential Work Session 2 Address as a budget consideration 3 Awaiting City Attorney input - #11 will be scratched unless City Attorney advises differently 4 Currently underway 102 Main Office (907) 224-4050 CITY OF SEWARD • Police (907) 224-3338 • Harbor (907) 224-3138 P.O. Box 167 . Fire (907) 224-3445 410 Adams Street . City Clerk (907) 224-4046 Seward, Alaska 99664.0167 • Community Development (907) 224-4049 • Utilities (907) 224-4050 • Fax (907) 224-4038 MEMORANDUM LI TO: Johanna Kinney, City Clerk FROM: Brenda Ballou, Deputy City Clerk DATE: April 14, 2017 RE: 2017 City of Seward Financial Disclosure Forms This memo is to inform you that all 2017 Financial Disclosure forms for City Council, the Planning and Zoning Commission, and the City Manager have been received in a timely manner. The City Clerk's office will maintain the original forms on file for six (6) years, per the city's records retention schedule. The 2017 Financial Disclosure Form covers the calendar year from January 1 through December 31, 2016. The forms received included: City Manager Seward City Council James Hunt Jean Bardarson, Mayor Marianna Keil, Vice Mayor Ristine Casagranda David Squires Sue McClure Deborah Altermatt Erik Slater Seward Planning and Zoning Commission Cindy Ecklund, Chair Martha Fleming, Vice Chair Gary Seese Tom Swann Margaret Anderson David Carlton, Jr. Craig Ambrosiani 103 April 2017 May 2017 April 2017 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 1 2 3 4 5 6 2 3 4 5 6 7 8 7 8 910111213 9 10 11 12 13 14 15 14 15 16 17 18 19 20 16 17 18 19 20 21 22 21 22 23 24 25 26 27 23 24 25 26 27 28 29 28 29 30 31 30 Sun Mon Tue Wed Thu Fri Sat Mar 26 27 28 29 30 31 1 Apr 1 Reserved for Audit Q Q N 2 3 4 5 6 7 8 Reserved for Audit 7:00pm 10:30p 12:00pm 2:00p 10:00am 1:30p co m P&Z Mtg m PACAB m HP WS (City Annex Mtg (Library) (Chambers) Q Building) 9 10 11 12 13 14 15 Reserved for Audit 5:30pm 7:00pm 7:00pm 10:00p 12:00pm 2:00p 7:00pm 10:00p Ln CCWS m KPB Road m PACAB m Fish & (Chambers) Service Mtg Work Session Game a 7:00pm 10:30p (Council 6:30pm 10:00p Meeting Q m CC Mtg Chambers) m HP Mtg & (Chambers) (Chambers) WS (Chambe 16 17 18 19 20 21 22 1:00pm 11:00P m KPB N Assembly Me 5:00pm 6:00pm KPB Assembl Q Q 7:00pm 10:30p m P&Z Spc 23 24 25 26 27 28 29 7:00pm 10:30p m CC Mtg °N m (Chambers) N 8- 30 May 1 2 3 4 5 6 0 m Q Q Nanci Richey 1 4/20/2017 9:09 AM 104 May 2017 May 201h June 17 SuMo TuWe TFr Sa SuMo TuWTh Fr Sa e Th 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Sun Mon Tue Wed Thu Fri Sat Apr 30 May 1 2 3 4 5 6 7:00pm 10:30p 12:00pm 2:00p 10:00am 11:30a m P&Z Mtg m PACAB m 2nd Grade o (City Annex Mtg Field Trip Building) (Chambers) (Chambers) 0 m Q Q 7 8 9 10 11 12 13 5:30pm 7:00pm 10:00am 1:30p CC WS m HP WS (Chambers) (Chambers) rn 7:00pm 10:30p m CC Mtg (Chambers) 14 15 16 17 18 19 20 6:00pm 9:30pm 12:00pm 2:00p P&Z WS (City m PACAB WS Annex (Chambers) CD Building) 6:30pm 11:00p mHPMtg & WS 21 22 23 24 25 26 27 7:00pm 10:30p m CC Mtg (Chambers) r- N rl N 28 29 30 31 Jun 1 2 3 M Holiday Office 00 N Nanci Richey 2 4/20/2017 9:09 AM 105 June 2017 June July 17 e Th SuMo TuWFr Sa SuMo TuWTh Fr Sa e Th 1 2 3 1 4 5 6 7 8 910 2 3 4 5 6 7 8 11 12 13 14 15 16 17 9 10 11 12 13 14 15 18 19 20 21 22 23 24 16 17 18 19 20 21 22 25 26 27 28 29 30 23 24 25 26 27 28 29 30 31 Sun Mon Tue Wed Thu Fri Sat May 28 29 30 31 Jun 1 2 3 M c 00 N 4 5 6 7 8 9 10 7:00pm 10:30p m P&Z Mtg (City Annex o Building) 11 12 13 14 is 16 17 7:00pm 10:30p m CC Mtg (Chambers) 18 19 20 21 22 23 24 6:00pm 9:30pm P&Z WS (City Annex N 00 Building) 25 26 27 28 29 30 Jul 1 7:00pm 10:30p m CC Mtg Ln N 7 (Chambers) Nanci Richey 3 4/20/2017 9:09 AM 106