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2024-10-31 Work SessionKodiak Island Borough Assembly Work Session Assembly Chambers Thursday, October 31, 2024, 6:30 p.m. Work Sessions are informal meetings of the Assembly where members review forthcoming programs of the borough, receive progress reports on current program or projects or receive other similar information from the manager. All discussions and conclusions are informal and there are no official actions taken. The Assembly also review the upcoming regular meeting agenda packet and request and/or receive information from staff. This work session is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Page 1. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202 2. AGENDA ITEMS a. Ocean Pasture Restoration Presentation Of A Three -Year Pilot 4-8 Project Of Ocean And Fish Restoration In The Gulf Of Alaska Agenda Item Report - Pdf b. Discuss Ordinance Amending Various Sections Of The Kodiak 9 - 62 Island Borough Code Title 17 Zoning To Include Defined Intent And Development Standards For Accessory Dwelling Units Agenda Item Report - Pdf C. Continued Discussion Of Policy Decisions On The Old Mental 63 - 89 Health Facility Buildings Agenda Item Report - Pdf d. Discussion Of Personal Property Tax Exemption Ordinance 90 - 95 Agenda Item Report - Pdf e. Solid Waste Contract Revisions Discussion 96 - 195 Agenda Item Report - Pdf 3. PACKET REVIEW The DRAFT regular meeting packet is available online at Kodiak Island Borough - Meeting Type List (civicweb.net). a. PUBLIC HEARING • Ordinance No. FY2025-08, An Ordinance Of The Kodiak Island Borough Accepting And Appropriating Grant Funds For The 2020/2021 Statewide Salmon Disaster NEW BUSINESS Pagel of 232 • Election of the 2024-2025 Borough Assembly Deputy Presiding Officer CONTRACTS • Contract No. FY2025-27, Snow And Ice Control For Bayview And Monashka Bay Service Area With AIM Maintenance RESOLUTIONS • Resolution No. FY2025-10, Accepting Grant Funds From The Denali Commision For The Purpose Of Updating the Kodiak Island Borough Solid Waste Management Plan And Related Regional Planning Activities • Resolution No. FY2025-11, A Resolution of the Kodiak Island Borough Assembly Accepting 2023 State and Local Cybersecurity Grant Program Funds in the Amount of $227,997 OTHER ITEMS • Rescinding The Approval Of Contract No. FY2024-38 With Otis Elevator Company For Elevator Maintenance Services • Assembly Review Of The State Of Alaska Alcohol And Marijuana Control Office, Beverage Dispensary License Renewal Application For Blue, Inc., Doing Business As B&B Bar (License #85) • Confirmation Of Assembly Appointment To The Bayview Service Area Board Of Mr. Sean Rauwolf • Declaring A Seat Vacant On The Solid Waste Advisory Board (Ms. Kerry Irons) 4. MANAGER'S COMMENTS a 2024-10-31 Borough Manager's Report 5. CLERK'S COMMENTS a 2024-10-31 Borough Clerk's Report 6. ASSEMBLY MEMBERS' COMMENTS 8. INFORMATIONAL MATERIALS 196 - 202 203 - 207 a Meeting Materials 208 - 232 Page 2 of 232 This meeting is open to the public and will be broadcast on the Borough's YouTube Channel. Meeting packets are available online. Please subscribe to get meeting notifications when meeting packets are published. For public comments, please call (907) 486-3231 or (855) 492-9202. Page 3 of 232 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION SUBJECT: Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of Ocean And Fish Restoration In The Gulf Of Alaska ORIGINATOR: Nova M. Javier, MMC, Borough Clerk RECOMMENDATION: DISCUSSION: This presentation was requested by Mr. Robert B. Lindsey. Please see attached Agenda Item Request form. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of ... Page 4 of 232 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH PUBLIC AGENDA/PRESENTATION REQUEST FORM Desired date for the item to appear on an Assembly agenda: O- C'+6 e'V Name: L-,'tP--" 4 Organization: t ER- aPa,.o A$ f-it C_ 4�ei. Address: ? 1 e S,otj_e C" t24 2e a r9- IC rA , IPL K ; k� Phone #:`1V,6_4't1-a771_Cell #: 65y-1770 Email: kmd, a k wo.v; s Q!b M. . t .. C. Please state the item you wish to have placed on the agenda and submit any applicable documents with this form. o rna,ke- r 6nroc' Asse.•,i,l,, a.,A_ knl�"drC`ac a- wi.a2� �lgW �e r t n L OP.P "S air 1� 1 � Z Z, HE) cal ci s 1 i C Jan.0 e- a-/bgg P-ra_4-; n n.0 ✓- ou C U J {� .cr/ 3 I.L. x'V- { :j2ra 4 Q c � F,� UC e—, z, �' !' �� C � 7S e S it o�-�/'at}1�', c !J � 6 u 'C ` .�t 1 a SA Please state the - desired action of the Assembly: M\o,&3 u V c> i n+./nc6e,��e Go,,, •2taM 5 dk nJ.— Sr+.-i e_1yxc e_ i nVn (VeP� ; .J a La G i ee w s- . J. `�' t�,�4^cn/' ra. 'f'� v 1'O � A �. az,v,. c� Gu �►n.,� �.�'f p �i qyea,� are, i n 4_8r•rex" el",��f^ tdt a r? -o ,�"��_ eY,oCo-r<�`rrw QRR Do you wish to present this to the Assembly? _Yes No Presentations are normally limited to 15 minutes. If more time is desired, please state how many minutes is requested: 2.d rAp. x . Do you need to have access to equipment for this presentation such as a ' computer, projector, DVD player? If so, please state the equipment needed below: LO e- w ey l A_ I, ji_ k e G. e ri My'f �r �s c✓ ttv, tG �� i s 1 k 46>L Q/y (OOP I �l✓ �S �y,� �Z� io✓. � 5 z 4ho.ic. Clnd e c,�; o.� Please see additional information on the back of this form. Page 5 of 232 Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of ... AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH PUBLIC AGENDAIPRESENTATION REQUEST The Assembly meets on the first and third Thursdays of each month for their regular meetings and they normally meet a week before in work sessions before the regular meetings. If you have a specific topic that you would like the Borough Assembly to discuss at a future work session/meeting, OR if you wish to make a presentation to the Assembly, please complete this form and submit it to the Borough Clerk's Office. The item will possibly be scheduled for a future meeting or forwarded to Borough Staff for appropriate action. Please return this form to: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough 710 Mill Bay Road, Kodiak, AK 99615 Email: clerks@kodiakak.us Phone: (907) 486-9310 Fax: (907) 486-9391 uu 1 0 7 2024 For Staff Use Only: _ERK'SCE Received by the Clerk's Office on: l� l I �'ALASKA Distributed to the Manager/Assembly on: 'biscussed at the agenda setting on: Approved for agenda item on: Work session date: Regular meeting date: Informed requestor on: Notes: Page 6 of 232 Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of ... AGENDA ITEM #2.a. J- Rr.,b e v, `% , n J S e C' 6f Qo G, �l - Q 7 7 O T-U h o yL v d a_L L` o ✓` e i" /1 e�r�L w�` 1 M 5C-6 1--- /*V- - 00,/,C"jI ). /45 t7 I S I <_ q, o\- ok , a 't') a F-�, o 0 A r j v r<, ytov- e `- k ee C-) c e h 'CA, S4- v r e- 5 0-r 5 yr + ht,,,l tA) f7'; 4 foe')) ""A ion I; - Page 7 of 232 Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of ... AGENDA ITEM #2.a. l! J 1n I �c�rt ('2a ✓i '1�� aL eytlYtCz. ol S. t e +.� al Va,'V-\.c e Wvi 1�, v C s c r x I. �or� C) 62- Cc) 7 � (�; _,!� 2( - R _� `7 d (r, � Y, c t _C, I � � m I f,, )" n,4--f I - W 0,_�. n a 4- bk3 0 Y, k- � r�� Page 8 of 232 Ocean Pasture Restoration Presentation Of A Three -Year Pilot Project Of ... AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION SUBJECT: Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough Code Title 17 Zoning To Include Defined Intent And Development Standards For Accessory Dwelling Units ORIGINATOR: Chris French, CDD Director RECOMMENDATION: For assembly discussion. DISCUSSION: The Kodiak Island Borough Planning & Zoning Commission began working on potential amendments related to accessory dwelling units starting with a work session in May of 2023. After many months of reviewing the existing regulations in light of accessory dwelling unit regulation guides from AARP and AML; the Commission held its first public hearing on amendments related to accessory dwelling units on February 21, 2024. The Commission held three public hearings on the amendments, making multiple revisions to the draft ordinance. On June 18, 2024, the Planning & Zoning Commission voted 4 to 1 to recommend approval of Ordinance No. FY2025-03 to the Assembly. As a part of the Commission's review of potential amendments related to accessory dwelling units, the Commission reviewed several documents; the most important being the ABCs of ADUs from AARP and the AKDUs and Don'ts from AML. Both of these documents are attached to this agenda item. The work session on the ADU amendments will be split into two meetings to increase focus on the proposed changes. The first work session was held on October 10, 2024, this meeting focused on half of the changes proposed in the ordinance. The changes discussed were: • Removal of the conditional use permit (CUP) requirement for those ADUs that meet the development standards. The CUP remains an option for ADUs that do not meet one or more development requirements. • Changes to the current definition of an accessory dwelling unit based on best practices. • Changes to the parking requirement of ADUs within the City of Kodiak and those outside the City. The proposed changes would require one space for ADUs in the City of Kodiak and two spaces for ADUs in the borough. This issue garnered a lot of discussion at the Planning & Zoning Commission meetings. • Changes to the size restriction to 800 square feet for all ADUs no matter the zoning district. At the October 31, 2024 Assembly work session the following changes will be discussed: The focus of the work session discussion on the first half of the changes centered on the CUP process, parking requirements, and changes in the maximum size of an ADU to 800 square feet. To follow up on this discussion and to prepare for the October 31 discussion, the Community Development Director created two documents; the first is a table that identifies the current regulations from the proposed regulations to further illustrate the proposed regulation change, and the second document, a table that provides similar development standards from other Alaska communities. The table on other community regulations is clear that most communities do not use the CUP process unless a standard is not being met, which Kodiak Island Borough Page 9 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION is similar to the proposed changes recommended by the Planning and Zoning Commission. Looking at the parking requirements from other communities the maximum ADU parking requirement was 2 spaces required by the City and Borough of Sitka and the City of Palmer for larger ADUs. The square footage size limitation in other communities showed the greatest diversity with most communities using a percentage and a square footage requirement in combination; however, maximum sizes ranged from 600 square feet to 1,200 square feet. At the October 31, 2024 Assembly work session the following changes will be discussed: • The deletion of the requirement that the owner of the property must live in either the principal unit or the accessory dwelling unit. This change garnered a lot of discussion at the Commission meetings. • Added a requirement that ADUs must be behind or to the side of the principal dwelling unit on the property. This was added to address concerns that an ADU could be placed in front of the principal structure; therefore, it would not have the appearance of being an accessory unit. • Added a requirement that a property must meet the minimum lot size of the zoning district the property is located in before the property is allowed to apply for an ADU. • Removed the R2 zone from the list of zones that permit ADUs. This was removed because the R2 zone already permits two units on a property. In the community comparison table staff noted that only one of the seven communities had an ownership requirement (City of Palmer). The proposed standard that the ADU be placed behind or to the side of the principal structure was not included in the standards of any of the seven communities studied, it should be noted that three other communities had similar standards that relate to how close to the front property line an ADU may be placed or that ADU cannot be placed closer to the front property line than the principal structure. Two other communities in Alaska had similar standards that required that the lot upon which the ADU is proposed to be placed must meet the minimum lot size of the zoning district. The amendment removing the R2 or duplex zone it should be noted that none of the other 7 communities allow ADUs in a duplex zoning district. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: The Assembly discussed this topic on the following dates: • August 29, 2024, Work Session • September 12, 2024, Work Session Kodiak Island Borough Page 10 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... A U) 0 c O a =' a) CID B m a v o' c cn Cn m a 0 0 O m 0 a v 77 v D a W 0 0 c Zr ADU COMPARISON TABLE Zoning Zone Area Min. Lot Setbacks Max. Build JADU Attached ADU Detached roposedADU ADUSize lProposedADU Parking oposed District .- Zoned Area Area , FY25 SY 10 2<600 sf - 1 in CoK, 2 R1 SF* 1,221 ac 7200 sf RY10 5275 sf Admin CUP Admin 575 sf 800 sf 3> 600 sf in Borough C 4,134,020 FY25, SY25, 2<600 sf - 1 in CoK, 2 Conservation S F* ac Sac RY25 10890 sf Admin Admin Admin 725 sf 800 sf 3>600 sf in Borough 40000/200 FY25, 25956/14100 2<600 sf - 1 in CoK, 2 R R7 S F* 1,557 a c SY15/10***, Admin CUP Admin 725 sf 800 sf i n 00** RY20 sf**** > 3 600 sf Borough RR2 SF* 860 ac 2 ac FY50, SY20, 59200 sf Admin Admin Admin 725 sf 800 sf 2<600 sf - 1 in CoK, 2 Ry20 3>600 sf in Borough RR SF* 215 ac 40000 FY25, SY15 6000 sf CUP CUP Admin 725 sf 800 sf 2<600 sf - 1 in CoK, 2 RY20 3>600 sf in Borough • SF means single family zone ** Larger lot size, no public sewer and water/smaller lot size, public sewer and water available *** Larger side yard required for larger lot size/smaller side yard for smaller lot size **** Maximum buildable area for larger lot size/maximum buildable area for smaller lot size Note: The area of 1 parking space is 162 square feet A W 0 c O a) CD 3 m a v M. c cn Cn m a 0 0 O m 0 a v 77 v D a W 0 0 c Zr v CD N 0 N W N ADU STANDARDS BY AK COMMUNITY Community Structure Size A Lot Size Parking Permit Process Owner Requirement TLocation on Lot AL- Short Term Rental 600 sf, up to 1,000 sf for lots that are 125% or Minimum 1, except no parking Admin, CUP if does City of Borough more of min. lot size lot size of required in city not meet admin Not Applicable Not Applicable Not Applicable of Juneau and does not exceed zone center standards 50% of principal structure Admin, CUP may be City and Borough 800 sf Not 2 spaces requested if one or Not Applicable Not Applicable Cannot be leased for less of Sitka Applicable more standards is not than 90 days met. 40% or 800 whichever Petersburg is less (lots 0.5 acres or Not 40 feet from from property Borough less; 60% for lots 0.5 to 1 Applicable None Admin Not Applicable or no closer to street than Not Applicable acre' or 80% for lot over principal structure 1 acre Owner required to 10,000 sf lot live in one of the 40% of the principal of units (at least 6 unit; minimum of 300 attached; Studio or 1 bedroom months or more in a Cannot be closer to front City of Palmer sf and maximum of 20,000 sf -1 space; 2 bedroom Admin year) A recorded property line than the Not Applicable 900 sf lot for - 2 spaces covenant is required principal structure detached to notify the borough 30 days prior to a change in ownership 750 sf and cannot Minimum At least 10 feet behind the Only one of the two units City of Soldotna exceed the size of the lot size of 1 space Admin Not Applicable front plane of the principal on a lot may be used as a principal unit zone unit from the street. short term rental 40% or 900 sf, Municipality of whichever is greater; Not None Admin Not Applicable Not Applicable Not Applicable Anchorage no ADU can exceed Applicable 1200 sf Ketchikan 60% or 1200 sf, Not Gateway whichever is less Applicable 1 space Admin Not Applicable Not Applicable Not Applicable Borough AGENDA ITEM #2.b. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2025-03 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING VARIOUS SECTIONS OF THE KODIAK ISLAND BOROUGH CODE TITLE 17 ZONING TO INCLUDE DEFINED INTENT AND DEVELOPMENT STANDARDS FOR ACCESSORY DWELLING UNITS WHEREAS, the Kodiak Island Borough Assembly adopted Ordinance No. FY2017-21 which first adopted accessory dwelling units as a part of Title 17; and WHEREAS, the Kodiak Island Borough Assembly adopted Ordinance No. FY2019-20 which changed development standards for accessory dwelling units related to parking and size limits; and WHEREAS, Kodiak Island Borough Code (KIBC) 17.25.020 defines Accessory Dwelling unit "ADU"; and WHEREAS, KIBC 17.50.040, 17.60.030, 17.65.040, 17.70.030, 17.75.030, and 17.80.025 list conditional uses for the conservation, rural residential, rural residential 1, rural residential 2, and the residential 1 zoning districts; and WHEREAS, KIBC 17.50.020, 17.65.030, 17.70.020, and 17.75.020 list permitted use for the conservation, rural residential, rural residential 1, and the residential 1 zoning districts; and WHEREAS, KIBC 17.160.070 permits ADU construction and provides for development standards; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, the public necessity and general welfare of the community may be better served by amending the code to include defined intent and development standards for accessory dwelling units; and WHEREAS, the public necessity and general welfare of the community may be better served by amending the code to make all types of accessory dwelling units permitted uses in the rural residential, rural residential 1, and the residential 1 zoning districts; and WHEREAS, the amendments to KIBC 17.160.070 Accessory Dwelling Units and related sections of Title 17 will accomplish the stated public need. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Ordinance No. FY2025-03 Page 1 of 6 Page 13 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 Section 2: That Title 17 of the Kodiak Island Borough Code of Ordinances is amended to read as follows: Chapter 17.25 DEFINITIONS 17.25.020 A definitions. "Accessory dwelling unit (ADU)" means a smaller, secondaryan additienal dwelling unit and o.a nd GOntain kitGhen bathroa and, Sleepi g faGirfies located on the same lot as a principal dwelling. ADUs provide complete, independent living facilities (which at a minimum include permanent provisions for living, sleeping, eating, cooking, and sanitation which are accessed independently). The ADU shall not constitute a dwelling unit for purposes of calculating permissible density. Only one ADU may be permitted per lot. There are two types of ADUs: A. Attached ADUs are connected to or part of the principal dwelling. Examples include converted living space, attached garages, basements or attics; additions; or a combination thereof. An ADU shall be considered to be a part of the main building when joined to the main building by a common wall not less than four feet long or by a roofed passageway which shall not be less than eight feet in width. B. Detached ADUs which are separate accessory structures from the principal dwelling. Examples include converted garages or new construction. Chapter 17.50 C — CONSERVATION DISTRICT 17.50.030 Permitted accessory uses and structures. B. Accessory residential buildings (e.g., accessory dwelling units (ADUs) subject to the development requirements in KIBC 17.160.070(C), crew quarters in support of commercial set -net fishing and lodge operations, banyas, outhouses, etc.); 17.50.040 Conditional Uses. J. Marijuana cultivation, standard (lots less than five acres).- K. Accessory dwelling units that do not meet one or more of the development standards listed in KIBC 17.160.070.C, 1 through 7. Chapter 17.60 RR2 — RURAL RESIDENTIAL TWO DISTRICT 17.60.020 Permitted uses. A. Accessory buildings and accessory dwelling units (ADUs) subject to the development requirements in KIBC 16.160.070.C; Ordinance No. FY2025-03 Page 2 of 6 Page 14 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 102 103 104 105 106 107 108 109 110 ill 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 17.60.030 Conditional uses. C. Marijuana cultivation, limited (lots equal to or greater than two acres) -- I D. Accessory dwelling units (ADUs) that do not meet one or more of the development standards listed in KIBC 17.160.070.C, 1 through 7. Chapter 17.65 RR — RURAL RESIDENTIAL DISTRICT 17.65.030 Permitted accessory uses and structures. A. Accessory buildings and accessory dwelling units (ADUs), subject to the development requirements in KIBC 17.160.070.0 . 17.65.040 Conditional uses. C. Accessory dwelling units (ADUs) that do not meet one or more of the development standards listed in KIBC 17.160.070. C, 1 through 7. Chapter 17.70 RR1 — RURAL RESIDENTIAL ONE DISTRICT 17.70.020 Permitted uses. M. Accessory dwelling units (ADUs) subject to the development requirements in KIBC 17.160.070.0 4a+ a). 17.70.030 Conditional uses. D. Accessory dwelling units (ADUs) (detaG4ed) that do not meet one or more of the development standards listed in KIBC 17.160.070. C, 1 through 7. Chapter 17.75 R1 — SINGLE-FAMILY RESIDENTIAL DISTRICT 17.75.020 Permitted uses. H. Accessory dwelling units (ADUs) subject to the development requirements in KIBC 17.160.070.0 (at ; 17.75.030 Conditional uses. F. Accessory dwelling units (ADUs) (d^�vetaG4e4) that do not meet one or more of the development standards listed in KIBC 17.160.070. C, 1 through 8. Chapter 17.80 R2 — TWO-FAMILY RESIDENTIAL DISTRICT 17.80.020 Permitted uses. Ordinance No. FY2025-03 Page 3 of 6 Page 15 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 QP. Urban agricultural buildings and activities; and RQ. Agricultural buildings and activities (lots equal to or greater than 40,000 square feet when there is a single-family residence on the property). Chapter 17.160 ACCESSORY BUILDINGS AND ACCESSORY DWELLING UNITS 17.160.070 Accessory dwelling units. A. Intent. Accessory dwelling units (ADUs) add options and housing choice in residential neighborhoods and can be an effective way to add affordable housing to existing neighborhoods. ADUs also provide a flexible way to address family needs for additional housing. ADUs are not intended for use as transient housing and shall not be permitted for use as a bed and breakfast. 1. ADUs are not intended to allow a two-family residence in any single-family residential zoning district. B. Permitted Uses. 1. ADUs are a permitted use in the following residential zoning districts, subject to the development standards in subsection C of this seciton: a. Chapter 17.50 KIBC, C — Conservation District; b. Chapter 17.65 KIBC, RR — Rural Residential District; bc. Chapter 17.60 KIBC, RR2 — Rural Residential Two District; sd. Chapter 17.70 KIBC, RR1 — Rural Residential One District (attached); de. Chapter 17.75 KIBC, R1 — Single-family Residential District (attached); e. Chapter 17.80 KIBC R2 Two Residential m'StFiGt.. DC. Development Standards for ADUs. Ordinance No. FY2025-03 Page 4 of 6 Page 16 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 1 Only one ADU shall be permitted on a 1r + Lot size: The minimum lot area of the applicable zoning district shall apply. No lot that is substandard in the minimum lot area of the applicable zoning district may apply for an ADU. 2. Location. An ADU maybe attached to or located within a single-family residence or within a detached accessory building on the same lot as the single-family residence or as a separate structure on that lot. a. Attached ADU: if the ADU is IGGated within a SiRgle family , +,Virg There shall only be one entrance to the front of the house. Separate entrances to an ADU located within the principal dwelling or attached to it are permitted at the side or the rear of the principal dwelling unit. b. Detached ADU: The structure in which the ADU is located shall be located either to the side or behind the principal structure that contains the single-family residence. 43. Water Supply and Wastewater Disposal. The accessory dwelling unit must have a bathroom and shall share the same sewage disposal and water supply systems (e.g., a well and septic system or connection to public water and sewer) as the principal dwelling unit unless separate sewer and water connections are required by the city of Kodiak, ADEC, or the communities of Akhiok, Karluk, Larsen Bay, Old Harbor, Ouzinkie, or Port Lions. 54. Parking. a. Five off-street parking spaces are required for any lot with an ADU that is 699square feet outside the City of Kodiak (three for the existing dwelling unit and two for the ADU). b. S4Four off-street parking spaces are required for any lot with an ADU that is greater +hap firm square feet located within the City of Kodiak (three for the existing dwelling unit and threeone for the ADU). 65. Size Limit. a. An ADU shall be limited to 575800 square feet or less in the o, and o2 Dis+riGts In �u nthor dostrinto on AD' I droll he limited to 7'�5 c quare foot nr I000 b. Mobile homes, recreational vehicles, campers, and travel trailers are not permitted to be used as an ADU. 66. No new access points or driveways shall be created or installed for access to the ADU. 67. Nonconforming Structures. a. ADUs may be located within an existing single-family detached dwelling that is Ordinance No. FY2025-03 Page 5 of 6 Page 17 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 nonconforming with respect to required setbacks, provided the ADU requirement for off-street parking is met. b. ADUs are prohibited in any accessory structure that is nonconforming with respect to required setbacks. 4-08. Access for Emergency Services Providers. a. The zoning compliance permit and site plan for an ADU must show the location of an unobstructed route of travel from the street to the ADU entrance. b. Exterior doors and openings required by this code or the IBC shall be maintained readily accessible for emergency access by the fire department. An approved access walkway leading from the apparatus access roads to exterior openings shall be provided when required by the fire code official. 149. `Nana GeT Conditional Use Permit Reauired. the Of aA.A aa++arched- „r do+anhed a , dwelling unit-. Provisions within this chapter shall not be eligible for a variance. A proposed ADU that does not meet one or more of the provisions of paragraph C, 1 through 7, may request a conditional use permit. As part of the conditional use permit review, the applicant shall provide written justification on why a development standard cannot be met. The commission must determine as part of its review of such a conditional use permit request whether the written justification for the CUP is in conformance to the review criteria established in KIBC 17.200.050 paragraph A. Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2024 KODIAK ISLAND BOROUGH Scott Arndt, Mayor Introduced by: First reading: Second reading/public hearing: VOTES: Ayes: Noes: Ordinance No. FY2025-03 ATTEST: Nova M. Javier, MMC, Borough Clerk Page 6 of 6 Page 18 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. The Al of ADUs � � A guide to Accessory Dwelling Units and how they expand housing options for people of all ages 0 44 44 44 44 DETACHED ADU GARAGE -CONVERSION ADU al AARP.org/ADUs BASEMENT ADU ATTACHED ADU SECOND -STORY ADU Page 19 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Will, 10 U Websites: AARP.org and AARP.org/Livable Email: Livable@AARP.org Facebook: /AARPLivableCommunities Twitter: @AARPLivable Free Newsletter: AARP.org/LivableSubscribe AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 or older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. The AARP Livable Communities initiative works nationwide to support the efforts by neighborhoods, towns, cities, counties, rural areas and entire states to be livable for people of all ages. Orange Splot LLC is a development, general contracting and consulting company with a mission to pioneer new models of community -oriented, affordable green housing developments. Orange Splot projects have been featured in the New York Times, Sunset magazine and on NBC's Today show. (The Orange Splot LLC detached ADUs on page 3 and the back cover are by Orange Splot.) Company founder Eli Spevak has managed the financing and construction of more than 300 units of Website: OrangeSplot.net affordable housing, was awarded a Loeb Fellowship by the Email: eli@OrangeSplot.net Harvard University Graduate School of Design, cofounded the website AccessoryDwellings.org and serves as chair of Portland, Oregon's Planning and Sustainability Commission. AARP and Accessory Dwelling Units Visit AARP.org/ADU to order or download our free publications and find more resources about ADUs. ,4ARP The ABCs of ADUs A guide to Accessory Dwelling Units and how they expand housing options for people of all ages M.......... AARPg g/ADUs ....a.o.d ...o.o...a...o. 7ACCESSORY DWELLING UNITS Model State Act and Local Ordinance AARP's ADU Publications (from left): This introductory guide; guidance about creating an ADU model state act or local ordinance; a detailed guide to design and development. Copyright ©AARP 2021, 2nd edition (lstedition published in 2019) 1 AARP is a registered trademark. I All rights reserved. No part of this publication may be reproduced in any form or by any means without the prior written permission of AARP, except brief quotations in connection with reviews written specifically for inclusion in magazines, newspapers or websites, or limited excerpts strictly for personal use. Page 20 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Welcome! Come On In Accessory dwelling units are a needed housing option for people of all ages We know from surveys by AARP and others that a In fact, in the 2021 AARP Home and Community majority of Americans prefer to live in walkable Preferences Survey, adults age 18 or older who would neighborhoods that offer a mix of housing and consider creating an ADU said they'd do so in order to: transportation options and are close to jobs, schools, . provide a home for a loved one in need of care (86%) shopping, entertainment and parks. • provide housing for relatives or friends (86%) These preferences — coupled with the rapid aging of the United States' population overall, the decrease in households with children and the national housing shortage — will continue to boost the demand for smaller homes and affordable, quality rental housing. As small houses or apartments that exist on the same property lot as a single-family residence, accessory dwelling units — or ADUs — play a major role in serving a national housing need. This traditional home type is reemerging as an affordable and flexible housing option that meets the needs of older adults and young families alike. • have a space for guests (82%) • create a place for a caregiver to stay (749,.) • increase the value of their home (695/6) • feel safer by having someone living nearby (675/6) • earn extra income from renting to a tenant (6358) Since ADUs make use of the existing infrastructure and housing stock, they're also environmentally friendly and respectful of a neighborhood's pace and style. An increasing number of towns, cities, counties and entire states have been adapting their zoning or housing laws to make it easier for homeowners to create ADUs. ■ Irl DETACHED ATTACHED INTERIOR (UPPER LEVEL) ABOVE GARAGE FGARAGE CONVERSION A Accessory dwelling units (or ADUs) come in many shapes and styles. The ABCs of ADUs is a primer for elected officials, policymakers, local leaders, homeowners, consumers and others to learn what accessory dwelling units are and how and why they are built. The guide also suggests best practices for how towns, cities, counties and states can support the creation of ADUs as a way to expand and diversify housing options. The ABCs of ADUs I AARP 1 Page 21 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. What ADUs Are And What They ran Do ADUs are a family -friendly, community -creating type of housing the nation needs more of Although many people have never heard the term, accessory dwelling units have been around for centuries (see page 6) and are identified by many different names. To be clear about what's being discussed: • An ADU is a small residence that shares a single-family lot with a larger, primary dwelling • As an independent living space, an ADU is self-contained, with its own kitchen or kitchenette, bathroom and sleeping area • An ADU can be located within, attached to or detached from the main residence • An ADU can be converted from an existing structure (such as a garage) or built anew • ADUs are found in cities, in suburbs and in rural areas, yet are often invisible from view because they're positioned behind or are tucked within a larger home • Because ADUs are built on single-family lots as a secondary dwelling, they typically cannot be partitioned off to be sold separately • An ADU can enable family members (including family caregivers) to reside on the same property while having their own living spaces • An ADU can provide housing for a hired caregiver • An ADU can provide rental income to homeowners • ADUs are a practical option for tenants seeking small, affordably priced rental housing • For homeowners looking to downsize, an ADU can be a more appealing option than moving into an apartment or, if they're older, an age -restricted community • ADUs can help older residents remain independent and "age in place" • As an adaptable form of housing, ADUs provide flexible solutions for changing needs. ■ ADUs Are Also Known As ... Although most local governments, zoning codes and planners in the United States use the term accessory dwelling unit or ADU, these small homes and apartments are known by dozens of other names. The different terms conjure up different images. (Who !' wouldn't rather live in a "carriage house" than in an accessory or "ancillary" unit?) Even if you've never heard of accessory dwelling units ,_� , or ADUs, you have likely ■ . heard of — and perhaps - — -- Y know the locations of - some of the home types noted in the list at right. ■ ♦ Renting out this 350-square-foot garage -conversion ADU in Portland, Oregon, helps the property owner, who lives in the lot's primary residence, pay her home mortgage. 2 AARP I The ABCs of ADUs n 1 0 0 0 Accessory dwelling units show up in neighborhoods throughout the country — and even in pop culture. One example: In the sitcom Happy Days, Fonzie (right) rents an above -garage ADU from the Cunningham family in 1950s-era Milwaukee, Wisconsin. • accessory apartment • backyard bungalow • basement apartment • casita • carriage house • coach house • English basement • garage apartment • granny flat • guest cottage a • guest house n • in-law suite • laneway house o • multi -generational house m • ohana unit • secondary dwelling unit Page 22 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ADUs Come in Many Shapes and Styles Since ADUs are custom designed and created, they're able to fit discreetly into all sorts of locations, including suburban subdivisions, walkable towns, urban neighborhoods — and, of course, large lots and rural regions. A An ATTACHED ADU connects to an existing house, typically through the construction of an addition along the home's side or rear. Such units can have a separate or shared entrance. In this example, the owners built a connection between the house and what was a detached garage. The addition and the space above the garage contain the ADU, which has its own entrance (pictured at right). Location: Anne Arundel County, Maryland Photo by Melissa Stanton, AARP ► Access to an UPPER -LEVEL ADU can be provided through a stairway inside the main home or directly from an exterior staircase. This 500-square-foot ADU is part of a 1,900-square-foot primary dwelling. Location: Portland, Oregon Photo by Eli Spevak, Orange Splot LLC A DETACHED ADU (aka DADU) is a stand-alone home on the same lot as a larger, primary dwelling. Examples include backyard bungalows and converted outbuildings. Location: Portland, Oregon Photo by David Todd A A GARAGE ADU converts all or part of an attached or detached garage into a residence. Other options: adding an ADU above a garage or building a new unit for both people and cars. Location: Cape May, New Jersey Photo by Melissa Stanton, AARP A A LOWER -LEVEL ADU is typically created through the conversion of a home's existing basement (provided that height and safety conditions can be met) during construction of the house or (above and on page 7) as part of a foundation replacement and house lift. Location: Portland, Oregon I Photo by Chris Nascimento The ABCs of ADUs I AARP 3 Page 23 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Aniic ikM^ Good for People and Placor Communities that understand the benefits of ADUs allow homeowners to create them ADUs are an economical housing option ADUs can generate rental income to help homeowners cover mortgage payments or simply make ends meet. The income provided by an ADU tenant can be especially important for older people on fixed incomes. • Since the land on which an ADU is built already belongs to the homeowner, the expense to build a secondary residence is for the new structure only. • Many ADUs are created for family members or friends to reside in for free or at a discounted rate. In fact, when a loved one is in need of care or can't live alone, an ADU can be a viable alternative to a costly assisted -living facility. • Although market rate rents for ADUs tend to be slightly more than for similarly sized apartments, they often represent the only affordable rental choices in single-family neighborhoods, which typically contain few or no small or rental housing options at all. o The state of California and some municipalities are boosting ADUs by providing grants and other incentives as part of affordable housing and anti -displacement strategies to help lower -income households build ADUs or reside in them at reliable rents. 4 AARP I The ABCs of ADUs ADUs are community - compatible • ADUs offer a way to include smaller, relatively affordable homes in established neighborhoods with minimal visual impact and without adding to an area's sprawl. • ADUs provide a more dispersed and incremental way of adding homes to a community than other options, such as multistory apartment buildings. • ADUs are typically managed by homeowners who live on the premises. Such landlords are less likely to tolerate a destructive tenant. ADUs are good for the environment • ADUs require fewer resources to build and maintain than full-sized homes. • ADUs use significantly less energy for heating and cooling. (of all the ADU types, internal ones tend to have the lowest building and operating costs.) ADUs are just the right size • Generally measuring between 600 and 1,000 square feet, ADUs work well for the one - and two -bedroom homes needed by today's smaller, childless households, which now account for nearly two- thirds of all households in the United States. ADUs are able to house people of all ages • ADUs offer young people entry-level housing choices. • ADUs enable families to expand beyond their primary home. • ADUs provide empty nesters and others with the option of moving into a smaller space while renting out their larger house or letting an adult child and his or her family reside in it. • An ADU's use can be adapted for different household types, income levels, employment situations and stages of life. ■ Big houses are being built, small houses are needed Do we really need more than three times as much living space per person as we did in 1950? Can we afford to buy or rent, heat, cool and care for such large homes? FACT. ADUs house more people per square foot of living area than single-family homes do. Page 24 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. HOME VISIT #1 Attached ADU Addition Santa Cruz, California Size: 500 square feet o i A The area with the darker roof shingles is the ADU that was added onto the home of Carrie and Sterling Whitley. V The Whitleys' ADU (that's Carrie showing off the front yard's new paths and plantings) has its own entrance on the side of the home and is being rented to the couple's daughter so she can help her elderly parents when needed. When Carrie and Sterling Whitley bought their house in 1971, they paid less than $15,000. Nearly 50 years later, similar homes on their street have sold for more than $1 million. THE PROBLEM: The Whitleys, who are in their 80s, own the house outright and don't want to move. But the financial and physical demands involved in maintaining the house are a challenge. A SOLUTION: To help low-income homeowners age 62 or older live independently and keep their homes, the Monterey Bay affiliate of Habitat for Humanity and the City of Santa Cruz launched My House My Home: A Partnership for Aging -in -Place. The pilot program builds accessory dwelling units so older homeowners can downsize into a new, aging -friendlier home and earn rental income from their original house. Or such homeowners can remain in their house and rent out the new, smaller residence. Participating homeowners are required to charge an affordable rental rate. REALITY CHECK: When the Whitleys' project broke ground in April 2017, they were the first homeowners to receive an ADU through the program, which worked with them to design the ADU as an addition to their existing home. Since the dwelling was built with accessibility features, Carrie and Sterling know they can downsize into it if they ever need to. Until then, their daughter, Brenda, resides in the addition. REAL LIFE: "I'm right next door to my parents in case they need me or need any help," Brenda says. Design: Historic Sheds I Builder. Historic Sheds I Cost to build: $758,000 in 2077 (not including volunteer labor) I Photos by Michael Daniel I Article adapted from Where We Live: Communities for All Ages (HARP 2078) The ABCs of ADUs I A A R P 5 Page 25 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ADUs Are an American Tradition While today's interest in ADUs may be new, the housing type is centuries old Early settlers often built a small home to live in while constructing their larger, primary house nearby. When farming was a source of survival for most of the nation's households, families routinely constructed additional homes on their land when needed. People with wealth and acreage regularly populated their lands with secondary mansions and ancillary buildings independent of the main estate house. In fact, until the 20th century, people who owned land built as many homes as they wished, often for extended family or workers. There were few or no zoning rules, municipal services or infrastructure needs (utilities, roads, schools, trash collection, first -responders) to consider. A historic precedent for the modern day accessory dwelling unit is the "carriage house," or "coach house." Originally built for horse-drawn carriages, the structures associated with grander homes were frequently large enough to double as living quarters for workers such as stable hands. Decades later, in response to housing shortages and economic needs, many surviving carriage houses were V This carriage house containing a one -bedroom, one -bath ADU above a two -car garage sits behind a six -level, Gilded Age, Hoboken, New Jersey, townhome that was built in 1883. The dual residence property was on the market in 2018 for $5 million. converted into rental homes. By becoming landlords, the owners gained income from their often unused outbuildings. Automobile garages have a similar history. Some were originally built with a housing unit upstairs. Over time, many garages were converted (often illegally or under zoning codes no longer applicable today) into small homes when the spaces became more valuable for housing people than vehicles. With the rise of suburban single-family home developments following World War II, ADUs practically ceased to be built legally in the United States. Then as now, residential zoning codes typically allowed only one home per lot, regardless of the acreage and with no exceptions. Attached and detached garages occupied yard space that might otherwise have been available for ADUs. Some cities, including Chicago, grandfathered in pre-existing "coach house" ADUs — but only if they remained consistently occupied. In Houston's historic and trendy Heights neighborhood, old and new garage apartments are common and desired. Many communities don't allow new ADUs, even if they did in the past. Even in rural areas with ample land, property owners are often prohibited from creating secondary dwellings or continuing to live in preexisting ones. Countless units in single-family homes or yards are technically illegal simply because they date from when such units were not allowed. ADUs began making a comeback in the 1980s as cities explored ways to support smaller and more affordable housing options within single -dwelling neighborhoods. In 2000, in response to a growing demand for ADU- supportive guidelines, AARP and the American Planning Association partnered to release a model state act and local code for ADUs. An updated resource was published by AARP in 2021. (See an image of it on the inside front cover of this guide.) Many state and local governments are legalizing and encouraging the creation of ADUs (seepage 8), driven by high housing costs and, in some cases, the belief that homeowners with suitable space shouldn't be so restricted in the use of their property. ■ 0 z n Page 26 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. HOME VISIT #2 "1 see our ADU as something very similar to a student loan," says Garage Apartment ADU Mara Owen. "It's something you invest in the future with. It was cheaper than buying a house for Mom, and it lets her have Denver, Colorado Size: 360 square feet independence. It's great knowing we can check in on her whenever." A The apartment above the garage can be reached from inside the garage or from an exterior side entrance accessed from the yard it shares with the primary residence. HOME VISIT #3 Basement ADU Portland, Oregon Size: 796 square feet The transformation of this colorful Victorian was both a preservation and expansion project. TEACHING MOMENT: "Here's a very welcome breath of fresh air, especially in the face of so much gentrification that is going on in Portland!" declared Mark A By lifting the house and digging beneath it, designers, engineers and Lakeman, principal of Communitecture, an builders turned a two-story, single-family home into a three-story, architectural, planning and design firm, multifamily residence. (The ADU's entrance is pictured on page 3.) about the pictured remodel. Writing on his company's website, he says the project provides a lesson in how to "adapt and reuse our precious historic houses so they can accommodate more people while also providing more income to support the existing home." AH-HA MOMENT: Owen, her partner, Andrew, and their three dogs were sharing a one -bedroom, one -bath house with her mother, Diane. When Owen learned that ADUs were allowed in the city, she decided the best way to get more space for her small home's many residents would be to remove their "leaky and defunct" garage and build a new two -car garage with an apartment above it. WISE ADVICE: "Get a really great builder and architect," says Owen. "Interviewing architects was similar to a first date. It's not just who you feel connected with. That's important, but get to the values. It's a niche market, so see if you can find someone who has built ADUs before, because ADUs are a little different." FUTURE PLANS: The stairs to Diane's apartment are wide enough for a stair lift, if it's ever needed. The roof was built at the correct slope for the eventual installation of solar panels. Design: Hive Architecture I Builder. Hive Architecture I Cost to build: $ 767,000 in 2076 1 Photo by Mara Owen I Article adapted from `ADU Case Studies" by Lina Menard on AccessoryDwel I ings.org. Visit the website to read about and see photographs of more ADU projects. HOW'D THEY DO IT? To add a basement rental unit, engineers lifted the house. The resulting ADU is roughly four feet underground and four feet above. THE ACHIEVEMENT: Adds Lakeman: "Unlike the seemingly pervasive method of simply tearing down existing buildings so that new, giant ones can be built, this approach achieves upgrades in energy efficient living places and adds density while retaining the continuity of our beloved historical urban environment." Design: Communitecture I Home Lift. Emmert International Builder. Tom Champion I Cost to build: $725,000 in 2015 1 Photos by Communitecture (before) and Chris Nascimento (after) The ABCs of ADUs I AARP 7 Page 27 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. The Time Is Now Rules for ADUs continue to evolve and frequently differ from one town to the next Some communities allow almost any home to be set up with an ADU — so long as size limits, property line setbacks and placement caveats in relation to the primary dwelling are met. Others start with those basic standards and then layer on extra requirements that can make it challenging to create an ADU. (Learn more on pages 14 and 15.) Municipalities nationwide have been relaxing their restrictions against ADUs, and several states now require communities to allow them. Some examples: • New Hampshire and Vermont allow ADUs nearly everywhere single-family housing is permitted. New Hampshire's 2017 legislation stemmed in large part from the frustration of builders who couldn't construct the backyard cottages and garage apartments their clients desired. In 2020, the California legislature declared that "allowing accessory dwelling units in zones that allow single-family and multifamily uses provides additional rental housing, and is an essential component in addressing California's housing needs" The state allows up to one ADU and one JADU per lot. (What's a JADU? See page 14.) • Oregon requires cities and counties of certain sizes to allow ADUs in all single-family areas within urban growth boundaries. In 2021, the state extended ADU rights to rural residential areas. Other states allowing ADUs include Connecticut, Rhode Island and Utah. Many cities now allow ADUs, including Anchorage, Alaska; Atlanta, Georgia; Annapolis, Maryland; Asheville, North Carolina; Austin, Texas; Denver, Colorado; Honolulu, Hawaii; Houston, Texas; Louisville, Kentucky; Philadelphia, Pennsylvania; Phoenix and Tucson, Arizona; Seattle, Washington; and Washington, D.C.■ 10, Located on the lowest floor of a town house, an English basement is a partially belowground apartment that has its own exterior entrance. They are typically found in older cities such as New York or (pictured) Washington, D.C. In the past, property owners used the space as servant quarters. Today, these essentially built-in ADUs are often used as rental apartments. 8 AARP I The ABCs of ADUs To Encourage ADUs LOCAL OFFICIALS can ... • allow all ADU types (detached, attached, interior) • simplify the building permit process for ADUs • waive or reduce permit and impact fees • establish funding programs to help homeowners create ADUs • let garages be converted into ADUs without requiring replacement off-street parking • allow for the creation of a second ADU, subject to a combined size cap COMMUNITY PLANNERS can ... • adopt simple, flexible but nondiscretionary ADU rules about setbacks, square footage and design compatibility with the primary dwelling LENDERS can ... • work with homeowners to finance the construction of ADUs by using renovation loans ADVOCATES can ... • organize tours of completed ADUs in order to inform and inspire the community • educate homeowners, real estate agents, architects and builders about local zoning regulations and the permit process REAL ESTATE AGENTS can ... • educate themselves and their clients about rules for the construction of ADUs LOCAL MEDIA can ... • report on how and why homeowners build ADUs :X Page 28 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. HOME VISIT #4 Internal ADU (Main Level) Portland, Oregon Size: 220 square feet Even small homes can have enough space for an ADU. An underused main floor bedroom in this 1.5-story, 1,500-square-foot bungalow was transformed into a studio apartment. AH-HA MOMENT: According to Joan Grimm, who owns the home with Rita Haberman: "What we were looking for in terms of a community and aging in place was right under our noses. Remove a fence and create a shared open space. Build a wall and create a second dwelling unit. It doesn't have to be complicated." REAL LIFE: "Creatively carving out an ADU from the main floor of our house saved on design and construction costs," Grimm adds. "It provides an opportunity for rental income, with no significant compromise to the livability of our home." HOME VISIT #5 Internal ADU (Lower Level) Portland, Oregon Size: 795 square feet "ZT A The steps and side entrance lead to the studio apartment ADU, which was crafted out of an existing space. The covered porch to the right leads to the primary residence. The ADU contains a kitchen, small dining and living area, sleeping area, bathroom and laundry area. (See two interior photos on pages 19 and 20.) Design: Rita Haberman I Builder: RS Wallace Construction Cost to build. $55,000 in 2075 (with some work done by the homeowners) Photos courtesy Billy Ulmer I Article adapted from `ADU Case Studies" by Lina Menard on AccessoryDwellings.org "We were looking for a way to live in our house for the rest of our lives and to generate at least some income in the process," Robert Mercer and Jim Heuer wrote for the program guide of the annual Portland ADU Tour when their home was part of the lineup. "An ADU offers the possibility of caregiver lodging in the future or even a place for us to live while we rent out the main house if we get to the point where we can't handle the stairs any longer." THE SOUND OF SILENCE: Internal ADUs often require that soundproofing insulation be installed between the primary dwelling and the accessory unit that's below, above or beside it. In Portland, the building code for duplex residences requires a sound insulation rating of at least STCC45. To property owners thinking about a similar ADU setup, the duo advise: "Think about how you live in your home and how having downstairs neighbors will change what V The door to the right of the garage leads to a ground -floor ADU with windows along the back and side walls. The upper -level windows are part of the main residence. you can and can't do with your space and what investment you are prepared to make in sound insulation." AN ADDED BONUS: "We are pleased that we have been able to provide more housing density on our property and still be in keeping with the historic character of our home." Design: DMS Architects I Builder: Weitzer Company I Cost to build: $261,000 in 20761 Photo by Melissa Stanton, AARP Article adapted from the 2017 ADU Tour project profiles on AccessoryDwellings.org The ABCs of ADUs I AARP 9 Page 29 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Bringing Back ADUs The reasons for creating or living in an ADU are as varied as the potential uses ADUs are flexible. Over time, a single ADU might be used in many ways as an owner's needs and life circumstances change. Following are just a few reasons why ADUs are created and by whom: EMPTY NESTERS can build an ADU and move into it, then rent out the main house for supplemental income or make it available to their adult children. FAMILIES WITH YOUNG CHILDREN can use an ADU as housing for a nanny or au pair or even a grandparent or two, who can then help raise their grandkids and be assisted themselves as they age. INDIVIDUALS IN NEED OF CARE can reside in an ADU to be near family members, or they can use the ADU to house a live-in aide. (In fact, ADUs can be an affordable and more comforting alternative to an assisted -living facility or nursing home.) HOME BUYERS can look forward to the rental income from an ADU to help pay their mortgage or finance home improvements, especially in expensive housing markets. HOME -BASED WORKERS can use an ADU as their office or workshop. HOMEOWNERS can use an ADU for guests or as housing for friends or loved ones who: • aren't yet financially independent, such as new high school or college graduates • need temporary housing due to an emergency or while renovating their own home • have disabilities but can live independently if family reside nearby ■ The zoning code in Evanston, Illinois, permits accessory dwelling units, creating an opportunity for the owners of this 1911 home with an outbuilding in the backyard. 10 AARP I The ABCs of ADUs 0 0 0 Q D O D 0 ti n Page 30 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. HOME VISIT #6 Detached ADU (One -Story) Decatur, Georgia Size: 800 square feet When Walt Drake decided to downsize, his son Scott purchased his dad's house for himself and his family and built a detached ADU (or DADU) for Walt. "From not finding what we wanted for Dad, we decided to create it," says Scott. "Neighborhoods built in the 1920s have carriage houses. Building an ADU was a modern day version of something people have been doing on their property in this area for a hundred years." NEAR AND FAR: "We wanted the houses to be separate and to feel like we're each on our own property, but we're there for each other," says Scott. AGING -FRIENDLY: Building the ADU meant Walt didn't have to leave his home and neighborhood. "He was able to keep his own stuff and turn over what he didn't need to us," says Scott. "It kept my dad in place, which I think was important." FUTURE PLANS: Scott says the ADU is "serving its intended purpose" but that someday down the road it could be used as a long- or short-term rental. "The ADU could turn into lots of different things over the course of its lifetime." Design: Adam Wall, Kronberg Wall I Builder: Rob Morrell I Cost to build: $350,000 in 20741 Photo by Fredrik Brauer I Floor plan by Kronberg Wall Architects I Article adapted from `ADU Case Studies" by Lina Menard on AccessoryDwel I ings.org Walt Drake's southern -style, one -bedroom ADU has an outdoor, wraparound porch that can be accessed without using steps. The design is in keeping with other buildings in the neighborhood. The ABCs of ADUs I AARP 11 Page 31 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ADUs Are Age -Friendly Housing New -construction ADUs can be created with "universal design" features An "age -friendly" home has a zero -step entrance and includes doorways, hallways and bathrooms that are accessible for people with mobility differences. Converted garages (such as the one pictured on page 2) are among the easiest and least expensive ADU solutions for aging in place since they're preexisting structures and generally have no -step entries. To learn more about making a home aging -friendly, download or order the AARP HomeFit Guide at AARP.org/HomeFiL HOME VISIT #7 Detached ADU (Two -Story) Seattle, Washington Size: 800 square feet Evelyn Brom's plan was to build a backyard cottage and rent it out. She would keep living in her two - bedroom home. AH-HA MOMENT: As the design developed, Brom realized that she wanted to live in the stunning wood -and -glass ADU. It was a good decision. A week before moving in, Brom was laid off from her job. REAL LIFE: The $3,000 a month Brom receives in rent for the main house (which is occupied by a three -generation family) provides a needed income. "Being laid off has made this arrangement a lifesaver," Brom says. If the stairs in the cottage ever become too hard to navigate, she can move back into her original one-story house and rent out the cottage instead. "Now I have options," she says. OAM EXISTING SINGLE FAMILY RESIDENCE ---------------- Design: Chrystine Kim, NEST Architecture & Design I Builder: Ian Jones, Treebird Construction I Photo by Alex Hayden Cost to build: $250,000 in 20141 Article adapted from Where We Live: Communities for All Ages (AARP 2018) 12 AARP I The ABCs of ADUs A There's a powder room, open kitchen and living room on the first floor, with a bedroom and bathroom upstairs. Although Brom's property is only 0.13 acres, it's large enough to accommodate two homes, a patio, a lawn and a garage. A slatted wood fence with a gate divides the space between the two houses and provides privacy. Page 32 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. HOME VISIT #8 Detached Bedroom St. Petersburg, Florida Size: 240 square feet Bertha and her son John talked about someday buying a house with a mother-in-law suite. "Then one day someone came along and wanted my house, so I up and sold it," she explains. "But that left me homeless. I asked John if I could build a small house in his backyard and he agreed." CREATIVE THINKING: A detached bedroom is a permanent, accessory structure that, unlike ADUs, lacks a kitchen. But that's what makes these cabin -like homes more affordable to build than many ADUs and even tiny houses. WHAT'S INSIDE: Bertha's home contains a sleeping and living area and a full bathroom. "I paid for the little house and it's on my son's property. So I figured, if I'm cooking I can do it at my son's house," she says. (Her laundry is also done at his house.) A detached bedroom, which contains a bathroom but no kitchen, can provide housing for a loved one or serve as a home office or guest cottage. REAL LIFE: "Having access to my son's house makes it livable. Otherwise, I personally would not be happy. It's very comforting to know that John is close by. Hopefully this will be my home forever." Design: Historic Sheds I Builder: Historic Sheds I Cost to Build: $50,000 in 20771 Photo by Historic Sheds I Article adapted from "ADU Case Studies" by Lina Menard on AccessoryDwellings.org i 9*-� U ,;,, i_VjfC 0 Page 33 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Practical Solutions for ADUr- Local laws can both allow and appropriately control the creation of accessory dwellings There are more than 19,000 cities, 16,000 towns and 3,000 counties in the United States. ADU regulations are typically adopted at the local level, although several state legislatures have required cities to allow them. Where it's legal to build ADUs, homeowners still need to follow rules about where it can be done, how many square feet they can contain, how they can be used. These rules can be found in the local zoning code. There is a balance to strike between prudent ADU laws and encouraging their construction. For instance, after Portland, Oregon, relaxed its ADU rules in 2010 and waived impact fees (a savings of up to $12,000), the number of ADUs built rose from about 30 per year between 2000 and 2009 to nearly one a day in 2015. Changes in California's ADU rules saw Los Angeles go from 80 applications in 2016 to nearly 2,000 in 2017. Allowing Sonoma County homeowners to add both an ADU and a JADU (see the green box below) were among the policies adopted in the wake of the area's many devastating fires. Rules that discourage ADUs • ADU-specific regulations that don't also apply to primary dwellings (e.g., owner -occupancy requirements) • complex design compatibility criteria and approval steps • off-street parking requirements beyond those required for the primary dwelling • restrictions that limit ADUs to certain areas, particular zoning categories or to large lots • caps on square footage relative to the primary house that make it easy to add an ADU to a large home but hard or impossible to add one to a small home 14 AARP I The ABCs of ADUs Well-intentioned but burdensome rules can stymie the creation of ADUs. ADU-related zoning codes should be restrictive enough to prevent undesirable development but flexible enough that ADUs get built. When a community is worried about a potentially undesirable outcome, it can — and many do — craft regulations to prevent particular building types, locations or uses. A city concerned about the environmental impact of new structures might prohibit placing detached ADUs in precarious locations, such as on steeply sloping lots. Communities wary of ADUs becoming, for instance, off -campus student housing can establish occupancy rules. Every community has its own priorities and concerns, and there's a wide enough range of regulatory controls that communities can write appropriate ADU rules. This inherent flexibility in the form and function of ADUs allows them to pass political muster and get adopted in a wide range of places. (See page 16 for more about uses and rules) ■ Are ADUs allowed? Find out by calling your town, city or county office in charge of land use and permits — or stop by in person. You can also search for and read the zoning code through the local government's website. • If ADUs are allowed, ask what conditions, permit needs and impact fees apply. • If ADUs are not allowed and you want them to be, ask an elected official or your community's department of zoning and planning how the codes can be updated. • Then get organized and start advocating! Page 34 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Creating (or Understanding) an ADU Zoning Code The ADU section of a community's zoning code needn't be overly complicated. it just needs to establish clear, objective and fair rules for the following: 1. A Definition: A good zoning code clearly defines its 7. Design Standards: terminology. Here, for example, is a useful outline for what, . Size and height: A zoning code might specify exactly in the real world, is a very fluid term: "An ADU is a smaller, how large and tall an ADU is allowed to be. For secondary home on the same lot as a primary dwelling. ADUs instance: "An ADU may not exceed 1,000 square feet are independently habitable and provide the basic or the size of the primary dwelling, whichever is requirements of shelter, heat, cooking and sanitation." smaller." Codes often limit detached ADUs to 1.5 or 2 2. The Purpose: This is where the code describes key reasons a community allows ADUs. They should: • increase the number of housing units while respecting the style and scale of the residential neighborhood • bolster the efficient use of existing housing stock and infrastructure • provide housing that's affordable and responds to the needs of smaller, changing households • serve as accessible housing for older adults and people with disabilities 3. Eligibility: Who can build an ADU and on what type of lot? A statement in this part of the code clarifies that an ADU can be placed only on a "residentially zoned lot." (Some communities provide lot size standards.) 4. Creation: The code sets out how an ADU can be built. For instance: "An ADU may be created through new construction, the conversion of an existing structure, as an addition to an existing structure or as a conversion of a qualifying existing house during the construction of a new primary dwelling on the site." S. Quantity: Most municipalities that permit ADUs allow one per lot. Those allowing two typically permit one internal and one external. Some allow duplexes or townhomes to have an ADU, either in the backyard or on the ground floor. 6. Occupancy and Use: A code should state that the use -and -safety standards for ADUs match those used for the main dwelling on the property. (See page 17 for more.) Visit AARP.org/ADU to download Accessory Dwelling Units: Model State Act and Local Ordinance, a free publication that can be used by state and local officials to develop ADU policies. stories in height. An example of that language: "The maximum height allowed for a detached ADU is the lesser of 25 feet at the peak of the roof or the height of the primary dwelling." • Parking: Most zoning codes address the amount and placement of parking. Some don't require additional parking for ADUs, some do, and others find a middle ground — e.g., allowing tandem parking in the driveway and/or on -street parking. (See page 16 for more about parking.) • Appearance: Standards can specify how an ADU's roof shape, siding type and other features need to match the primary dwelling or neighborhood norms. Some codes exempt one-story and internal ADUs from such requirements. (See page 16 for more.) S. Additional Design Standards for Detached ADUs: • Building setbacks: Many communities require detached ADUs to either be located behind the primary dwelling or far enough from the street to be discreet. (A code might exempt preexisting detached units that don't meet that standard.) Although such a rule can work well for neighborhoods of large properties with large rear yards, communities with smaller lot sizes may need to employ a more flexible setback -and -placement standard. Building coverage: A code will likely cap the combined lot coverage of a detached ADU and the primary dwelling to a specific percentage. Yard setbacks: Most communities have rules about minimum distances to property lines and between buildings on the same lot. ADUs are typically required to follow the same rules. ■ The ABCs of ADUs I AARP 15 Page 35 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ADU "Hot Topics" As communities allow ADUs or update existing zoning codes and rules to be more ADU-friendly, they inevitably wrestle with some or all of the following issues: Adding ADUs to neighborhoods Recognizing that ADUs may represent a new housing type for existing neighborhoods, communities often write special rules to ensure they'll fit in well. These guidelines typically address visual compatibility with the primary dwelling, appearance from the street (if the ADU can be seen) and privacy for neighbors. Rules that help achieve these goals include: • height and size caps mandating that ADUs be shorter and smaller than the primary dwelling • requirements that detached ADUs be behind the main house or a minimum distance from the street • mandates that the design and location of detached ADUs be managed the same way as other detached structures (e.g., garages) on the lot • design standards for larger or two-story ADUs so they architecturally match the primary dwelling or reflect and complement neighborhood aesthetics • encouragement for the creation of internal ADUs, which are often unnoticeable from the street Each community can strike its own unique balance between strict rules to ensure that ADUs have a minimal impact on neighborhoods and more flexible rules that make them easier to build. Providence, Rhode Island, has many homes that were built as or long -ago converted into multidwelling units. (Notice the two front doors.) A homeowner can live in one apartment while renting out the other. 16 A A R P I The ABCs of ADUs Providing places to park ADU regulations often include off -street -parking minimums on top of what's already required for the primary dwelling. Such rules can prevent homeowners from building ADUs if there's insufficient space for added parking. However, the extra parking often isn't needed. Studies of Portland, Oregon, and the San Francisco Bay area found that ADU households own an average of 0.9 cars. That's half the national average of 1.8 cars per household. With just over 2 percent of Portland homes having an ADU (the highest percentage of any large city in the country), there's roughly one extra car parked on the street every six blocks. This suggests that, even in booming ADU cities, any impact on street parking from ADUs is likely to be very small and dispersed. More -realistic parking rules might: • require the creation of new parking only if the ADU displaces the primary dwelling's existing parking • waive off -street -parking requirements at locations within walking distance of transit • allow parking requirements for the house and ADU to be met by using a combination of off-street parking, curb parking and tandem (one car in front of the other) parking in a driveway Dealing with unpermitted ADUs It's not uncommon for homeowners to convert a portion of their residence into an ADU in violation (knowingly or not) of zoning laws or without permits. Such illegal ADUs are common in cities with tight housing markets and a history of ADU bans. One example is New York City, which gained 114,000 apartments between 1990 and 2000 that aren't reflected in certificates of occupancy or by safety inspections. Sadly, in 2021, several city residents living in unsafe basement apartments drowned in their homes due to flooding caused by Hurricane Ida. Some cities have found that legalizing ADUs, simplifying ADU rules and/or waiving fees can be effective at getting the owners of illegal housing units to "go legit" — and address safety problems in the process. ■ Page 36 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Allowing and Restricting Uses Communities get to decide whether to let ADUs be used just like any other housing type or to create special rules for them. Some municipalities prefer the simple approach: regulating ADUs like other homes. So if a home -based child-care service is allowed to operate in the primary dwelling, it is also allowed in an ADU. Conversely, communities sometimes adopt ADU-specific regulations in order to avoid undesirable impacts on neighbors. Examples of those regulations include: Limiting short-term rentals ADUs tend to work well as short- term rentals. They're small and the owner usually lives on -site, making it convenient to serve as host. However, if ADUs primarily serve as short-term rentals, such as for Airbnb and similar services, it undermines the objective of adding small homes to the local housing supply and creating housing that's affordable. In popular markets, short-term rentals can be more profitable than long-term ones, allowing homeowners to recoup their ADU expenses more quickly. In addition, short-term rentals can provide owners with enough income that they can afford to occasionally use the ADU for friends and family. A survey of ADU owners in three Pacific Northwest cities with mature ADU and short-term rental markets found that 60 percent of ADUs are used for long-term housing as compared with 12 percent for short-term rentals. Respondents shared that they "greatly value the ability to use an ADU flexibly." For instance, an ADU can be rented nightly to tourists, then someday rented to a long-term tenant, then used to house an aging parent. ADUs intended primarily for visting family are sometimes used as short-term rentals between visits. Cities concerned about short-term rentals can regulate them across all housing types. Doing so might mean that special rules are not needed. An approach employed in Portland, Oregon, is to treat ADUs the same as other residences except that any financial incentives (such as fee waivers) to create them are available only if the property owner agrees not to use the ADU as a short-term rental for at least 10 years. Requiring owner occupancy Some jurisdictions require the property owner to live on -site, either in the primary house or its ADU. This is a common way of addressing concerns that absentee landlords and their tenants will allow homes and ADUs to fall into disrepair and negatively impact the neighborhood. Owner -occupancy rules are usually implemented through a deed restriction and/or by requiring that an annual statement confirming residency be filed. Some cities go further, saying ADUs can be occupied only by family members, child- or adult -care providers, or other employees in service of the family. Owner -occupancy requirements make the financing of ADUs more difficult, just as they would if applied to single-family homes. But as ADUs have become more common, owner -occupancy restrictions have become less so, which is good. Such requirements limit the appraised value of properties with ADUs and reduce options for lenders should they need to foreclose. Enforcing owner -occupancy laws can be tricky, and the rules have been challenged in courts, sometimes successfully. However, according to a study by the Oregon Department of Environmental Quality, more than two-thirds of properties with ADUs are owner - occupied even without an owner - occupancy mandate. ■ ' The zoning code of Brevard, North Carolina, a city of fewer than 10,000 residents, allows ADUs, which are referred to as "secondary dwelling units" and are allowed "within residentially -zoned, single-family and duplex lots." The code states that such homes "shall be encouraged and designed to meet housing needs," adding that "[s]econdary dwelling units shall be accessory and subordinate to the primary living quarters." In the image at left, the one-story cottage is the primary dwelling. The apartment above the detached garage is the secondary dwelling. The ABCs of ADUs I AARP 17 Page 37 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. inside Spaces ADUs vary from studio apartment -like spaces to multi -bedroom, multi -story structures. Regardless of size, the result is a needed residence A top floor ADU can be a suitable rental for a student or someone who travels a lot for work. ADU expert Kol Peterson grew up in a home with an attic ADU that was usually rented to law school students. "They had to walk up the primary house's interior stairs in order to access the affordable attic unit," he writes in Backdoor Revolution: The Definitive Guide to ADU Development. "Over the years that each of them lived there, the tenants became part of our family." The alcoves in the ADU area above a garage provide a This studio apartment internal ADU uses a wardrobe light -filled work space in one, and a reading nook in the cabinet to separate the bedroom from the living area other. (See the attached ADU's exterior on page 3.) and kitchen (seen on page 19). 18 A A R P I The ABCs of ADUs Page 38 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. A As an independent living space, an ADU has its own bathroom and kitchen. Depending on the available square footage — and sometimes on the local zoning code or the property's plumbing and utility connections — an ADU might have a full kitchen with full-sized appliances and a dining area (top) or a smaller but functional kitchenette. This interior is from the detached ADU pictured below right and on the back cover. Fun fact: A coat closet and extra kitchen shelving are built into the base of the circular staircase. In a small home, every bit of space counts! / N AL drop. A The kitchen of this internal ADU (also seen at the top of page 9 and in the bedroom image at left) has a full-sized range but a mini -refrigerator. Some ADU owners install a one- or two -burner electric cooktop and a convection microwave in lieu of an oven. A The second story of this detached ADU is accessed by the spiral staircase shown in the image at top. The space features a bedroom and a sitting area that could be used as a nursery, office or den. A full-sized, stacked washer -dryer is hidden behind a closet door. The ABCs of ADUs I AARP 19 Page 39 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Just One More While not technically ADUs, tiny houses can serve a similar purpose Because tiny houses are typically built on a trailer with wheels rather than a fixed foundation, they are usually treated by zoning as recreational vehicles (RVs) or manufactured (aka mobile) homes. In Jl Portland, Oregon, and a growing number of smaller cities, tiny I houses can be legally occupied on any residentially -zoned lot. Since they're small — typically under 400 square feet — tiny houses can fit ' A" in a space too small for an ADU. Many include a kitchen and bathroom. Some function more like a detached bedroom. A unique plus: Unlike ADUs, tiny houses can move to a new location as needed. IT t A "The Lucky Penny" tiny r house measures 8 feet wide by 14 `I feet, 6 inches long and provides 100 square feet of living space. The home, which is located in the backyard of asingle-family residence, features a pullout bed, a kitchenette, a shower, built-in _ storage, and three large windows plus a skylight to provide lots of j nature light. • �\ t V ADUs are sometimes used as short-term rental units for travelers. The "Kangablue," is one of several units at Caravan, the "world's first tiny house hotel." At 170 square feet, the home is the _ largest tiny house on the lot, located in the Cully neighborhood of Portland, Oregon. The tiny space includes a kitchen, living area, bathroom (with a shower I and toilet) and a sleep loft. 'v" I a Top: Design and Builder: Lina Menard, Niche Consulting I Photos by Guillaume Dutilh, PhotoXplorer Bottom: Design and Builder: Benn Kovco I Photos by Jeff Freeman Photography 20 A A R P I The ABCs of ADUs Page 40 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. The ABCs of ADUs A guide to Accessory Dwelling Units and how they expand housing options for people of all ages WRITTEN AND EDITED BY: Eli Spevak, Orange Splot LLC I Melissa Stanton, AARP Livable Communities ART DIRECTOR: Mimi Park, Design Park, Inc. COPY EDITOR: Don Armstrong I ART PRODUCTION: Steve Walkowiak PROJECT ADVISERS AND REVIEWERS: Danielle Arigoni, Director, Livable Communities, AARP Government Affairs Karen Chapple, Professor, University of California, Berkeley Lina Menard, Founder, Niche Consulting Heather Peters, Senior Housing and Community Development Policy Analyst, San Mateo County, California Kol Peterson, Cofounder, AccessoryDwellings.org I Owner, Accessory Dwelling Strategies LLC, Portland, Oregon Denise Pinkston, Partner, TMG Partners Harriet Tregoning, (Past) Principal Deputy Assistant Secretary, U.S. Housing and Urban Development Jake Wegmann, Assistant Professor, University of Texas at Austin COVER IMAGE CREDITS (clockwise from top left) Front: Alex Hayden I Communitecture: Architecture, Planning, Design I AccessoryDwellings.org I Melissa Stanton, AARP I AccessoryDwellings.org Back: Kol Peterson, BuildingAnADU.com I Eli Spevak, Orange Splot LLC I Schuyler Smith, Polyphon Architecture & Design, LLC A NOTE TO READERS: Many of the photographs and project examples in this publication are from Portland, Oregon, which was one of the first municipalities in the nation to allow and encourage the creation of accessory dwelling units. To learn more about ADUs — and to order or download this guide — visit AARP.org/Livable. Other useful resources include: • AccessoryDwellings.org • BuildingAnADU.com • Planning.org (the website of the American Planning Association) • And the websites of the states, cities and towns mentioned in this guide as allowing and encouraging the creation of accessory dwelling units. Page 41 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ABOVE -GARAGE ADU DETACHED -BEDROOM ADU DETACHED ADU . An accessory dwelling unit is a small residence that shares a single-family lot with a larger primary dwelling. • As an independent living space, an ADU is self-contained, with its own kitchen or kitchenette, bathroom and living/sleeping area. (Garage apartments and backyard cottages are each a type of ADU.) • ADUs can enable homeowners to provide needed housing for their parents, adult children, grandchildren or other loved ones. • An ADU can provide older adults a way to downsize on their own property while a tenant or family member resides in the larger house. • Since homeowners can legally rent out an ADU house or apartment, ADUs are an often -essential income source. • ADUs help to improve housing affordability and diversify a community's housing stock without changing the physical character of a neighborhood. • ADUs are a beneficial — and needed — housing option for people of all ages. earn more about ADUs and order or download by visiti Sign eekly Communities - Be among irst to learn when AARP releases more livability iiiiiid D2o473 Page 42 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... �I i AKDUIS AND DON'TS�IIL A , fill r .��°, A Practical Approach to Bringing Additional Dwelling Units to Alaska Communities I, - •� �,� Qom_ 1 AGENDA ITEM #2.b. A Al—kbTab �KJEL-Tm A LAS KA • •• MUNICIPAL •• LEAGUE This publication was authored by Abigail Barton, a member of the Alaska Fellows Program, and Alicia Hughes-Skandijs. It was made possible through generous support provided by the AARP Community Challenge Grant. The AARP Community Challenge Grant is part of a nationwide livable communities initiative to help communities become great places to live for residents of all ages. Page 44 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS 1.0 Introduction 1.1 inuarvialni of HOUsinq Crisis in Mack - Alaska communities face an extreme shortage of affordable, decent housing. Almost eighty thousand Alaska households are considered cost burdened, meaning that they pay more than a third of their income toward their housing costs. Of Alaska's renter population 37% are cost burdened, with 18% severely cost burdened, meaning they pay more than half of their income towards housing. The statewide rate of overcrowding is twice the national average, with some regions experiencing rates twelve times greater. Rural communities where the population majority is Alaska Native are hit the hardest. In some areas, as many as half of all households live in homes that are too small for the number of occupants. Excessively high construction costs and limited senior housing result in households taking in family and community members who would otherwise be homeless. In 2018, the Alaska Housing Finance Corporation estimated that new construction would have to increase 11% each year to meet projected population growth by 2025. At that time, they found that to achieve that goal, the annual construction output would have to increase ninety percent over the previous five-year average. Since that time, the number of new units built in Alaska dropped precipitously during the pandemic and has yet to return to 2019 levels. NEW HOUSING UNITS, ALASKA 1992 TO 2022 5M0 3.500 _______ ___________ __________ 2,500 _ __ _ _ _ __________________ _________ 2.000 -_ - _ _ _ _. _ _ __ _ _ _ _ ____________ ___________ r 0 1992 1996 2000 2003 2009 2012 Mid 202D ■ New Unite Source: Alaska Department ofLabor and Workforce Development, Research and Analysis Section and the Alaska Housing Finance Corporation. Ism rCsa{% rL s _ rca s r T - �•1+. I z sFj 16� Page 45 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 2 1 AKDU'S AND DON'TS 1.2 Overview of Senior Demographics jr. Al -,I, - The population of Alaska is rapidly aging. Currently, Alaskans aged 60 and older make up about one in five residents statewide. Aging individuals are most concen- trated in Southeast Alaska, where the rate is one in four. The population of people 65 and older is expected to double by 2030. In the previous decade, the population of Alaskans aged 70 and older increased 97 percent. Data collection conducted in Anchorage, Fairbanks, Juneau, Kenai Peninsula, and Copper Center through the Alaska Senior Needs Assessment found that all regions reported a shortage of affordable independent senior housing. A survey of over 2,000 senior citizens across these communities found that accessible and affordable housing was the third most pressing issue in their lives, closely behind financial security and healthcare. Population Age 65+, Alaska, 1980 to 2050 180.000 160.000 140.000 120.000 100.000 80.000 60.000 40.000 20.000 LVW J1.C11G11V --- Middle Scenario Historical 01 1980 1990 2000 2010 2020 2030 2040 2050 Source: Alaska Department of Labor and Workforce Development Research and Analysis Section _3 Accessery Dwellinq Units: A Creative Solution The pressing issue of affordable, accessible housing in Alaska requires immediate attention. Accessory Dwelling Units, or"ADUs;'can provide a cost-effective means for quickly increasing the affordable housing stock. Also known as "granny flats,"mother-in-law apartments," and backyard cottages, ADUs are small residences that are attached to an existing single-family home or built as a free-standing unit on the same lot as an existing home. Though usually no larger than one or two bedrooms and typically much smaller than the primary residence, ADUs are entirely independent dwellings, equipped with their own kitchens, bathrooms, and other amenities necessary for full-time occupancy. ADUs allow communities to take advantage of existing infrastructure and add affordable homes in existing neighborhoods. ■ ■ ■ DETACHED ATTACHED INTERIOR (UPPER LEVEL) INTERIOR (LOWER LEVEL) ABOVE GARAGE GARAGE CONVERSION Source: AARP's'Accessory Dwelling Unit Model State Act and Local Ordinance." Page 46 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. ADUs certainly do not replace the large-scale invest- ment and development necessary to meaningfully alleviate the affordable housing crisis in Alaska, but in addition to contributing to that effort, ADUs have the ability to provide unique benefits to communities. As Alaska's population rapidly ages, adult children of aging parents and older homeowners face limited affordable, close, and independent living options. Adding an ADU to the property of a family member or to that of an older homeowner can allow aging individ- uals to maintain their independence and remain within their community. An ADU can act as caregiver housing or allow an elderly person to move closer to family. For aging homeowners concerned primarily with financial security, ADUs can be used to generate income to cover property taxes and maintenance during retirement. Though a meaningful intervention for senior Alaskans looking to avoid residential facilities, ADUs built for this reason can also go on to serve multiple purposes. ADUs built specifically for senior occupancy can be accessi- bly constructed to specifically meet new age -related mobility needs. While affordable housing is scarce, affordable housing that is also accessible is almost nonexistent in many communities. ADUs can make a dramatic impact on the accessibility of a region's affordable rental stock, dramatically increasing the inclusivity of a community. Additionally, an investment in an ADU for an aging relative can later be used to house young adult family members. By facilitating multi -generational living, ADUs can help keep families and communities together. Where commercial developers may have a wide range of financial and logistical considerations when deciding whether or not to go forward with a new development, the potential gains to a private home- owner in a community may increase the likelihood of adding a new housing unit. For that reason alone it is worth considering from the municipal perspective whether this could be a tool to add to your bucket in efforts to increase housing. AKDU'S AND DON'TS Former Alaska State Representative Alyce Hanley standing before the basement apartment she added to her Home, allowing her to live with her children while retaining her own living space. Source. KTOO-Anchorage Daily News'Alaska cities, facing housing crunch, encourage backyard cottages and apartment additions" (2018). 31-year-old Sitka resident Adrienne Wilber standing before her partially constructed ADU built on the corner of her parent's lot Source. KCAW'ADUs Could Make Sitko's Housing More Affordable. Advo- cates Want to Make them Easier to Build" (2021) Page 47 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS 2.0 Snapshot of Alaska Communities with Existing ADU Ordinances Structure & Lot Parking Occupancy Permitting Process Aesthetics/ Additional City and Borough of Juneau Structure: Lots up to 125% + 1 If the homeown- Applicants building on lots that None. Accessory Dwelling Unit Grant Program: Created a of the required minimum: required erfunds their exceed the minimum lot size re- max area 600 fe. Lots larger ADU construction quirements for their zoning district dedicated grant program than 125%: can be up to with a grant from and are connected to city sewer providing up to $13,500 50%of the net floor area of Juneau's Accesso- services are subject to ministerial for ADU construction to 16 the primary dwelling but ry Dwelling Unit approval. Those not connected homeowners annually. cannot exceed 1000 ft'. Grant Program, to the sewer will need to include Lot: Lot must meet the they must record verification from the Dept. of minimum lot size require- a deed restriction Environmental. Conservation that ment for the zoning district. agreeing not to their wastewater disposal system use the ADU as a can handle the additional use from short-term rental the ADU. Conditional use permits for the first five are required for all ADUs built on a years. sub -standard sized lot. City and Borough of Sitka Structure: Max. 800 ft' Parking plan Long term rentals Two zones are eligible for"by Requires 22.20.160 Accessory dwell - ing units (ADUs). Lot: Lots must be served by required but (90+ days) only. right" permitting if all regulations that ADUs be a publicly maintained right can rededi- are met, three additional zones designed so that of way. Cannot be con- cate existing are automatically subjected to the structure structed on lots accessed primary conditional evaluation as well as maintains"to through easements. dwelling all applications that do not meet the greatest unit spaces. regulations. Conditional permitting extent possible' process: applications must be filed the appearance at least 3 weeks in advance of the of a single - Planning Commission meeting family property. where they are subject to a public [22.20.160 (c) hearing. Applicants are required (8)] to attend and answer questions. Decisions are typically made at the first meeting. Kodiak Island Borough Structure: 575-725 ftz (de- 5 for <600 No short-term Permitted use for attached ADUs in None. 17.160.070 - Accessory pendent on zoning district) W; +6 for uses such as bed five residential districts zoned for dwelling units. Lot: No lot size restrictions >600 ft2 and breakfasts. single-family, two-family, rural, specified. Owner required and conservation. Conditional use to occupy either for detached ADUs in single-family ADU or principal residential districts and certain ru- dwelling. ral residential districts. Additional rural residential district requires conditional permitting for both detached and attached ADUs. Page 48 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS Structure & Lot Parking Occupancy Permitting Process Aesthetics/ Additional r Details/ Petersburg Borough Structure: 800 ft' or 40- None. None. Attached ADUs are permitted ADU must be Detached Accessory Dwell- ina Unit Standards 80% of the principal dwell- by right. The borough's website constructed ing's area depending on the requests that homeowners inter- with the same/ size of the lot. Height shall ested in constructing a detached similar materials not exceed the height of ADU contact the borough building as the principal the principal dwelling (no official for more information. dwelling. exceptions) Neither the code nor the website Lot: Addition of ADU specifies if a permit is explicitly cannot exceed maximum required. lot coverage, which for most residential properties is 35%. City of Palmer Structure: Min 300 ft; Max Studio/1 bd Owner must All applications are reviewed by Attached ADUs The zoning administrator 900 ft'. Can't be larger than ADU require occupy either the zoning administrator within must main- is required to furnish the 40% of main property and +1 spaces; the principal 30 calendar days. Applications tain style and planning and zoning can't have more than 2 bd. 2 bd requires or accessory require a $100 non-refundable fee exterior finishes commission with an annual Max height 25 ft. +2 spaces. dwelling for at and a notarized affidavit stating consistent with ADU report. The commission Lot: One ADU permitted least 6 months the owner will occupy either the the existing is required to reassess their per+10K ft' lot zoned each year. principal or accessory dwelling and structure. Exte- ordinance if records indicate residential or agriculture. that the ADU is compliant with all rior finishes for that 20% of single-family Attached ADUs may be requirements. detached ADUs structures within the city added to single-family Detached ADUs are required to be must comply have ADUs. [17.86.110] dwellings if they are the placed in the rear of the lot at least with local indus- sole principal dwelling on 10 feet behind the front plain of try standards for Chapter 17.86ACCESSORY DWELLING UNITS the lot. Detached ADUs only the primary dwelling, but appli- residential ex- allowed on lots +20K ft2 cants can ask the planning and terior cladding. No lot size restrictions for zoning commission for a waiver if Exteriors must central business district. it negatively impacts a neighbor's be compliant view. Applicants are encouraged to within 8 months gather testimony from impacted from start of neighbors. [17.86.040] construction. City of Soldotna Structure: Max. 750 ft2 +1 required. Short term All interested applicants must sub- None. 17.10.390 - Accessory (total lot coverage cannot rentals allowed mit a site plan and obtain a zoning dwelling units. exceed limit for single if principal permit and a building permit. structure) residence is ADUs are permitted within the Lot: Must meet minimum owner -occupied Single -Family, Single -Family/ lot size requirements for Two -Family, Rural Residential, and the zoning district Multi -Family residential zoning districts. Page 49 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS Structure & Lot Parking Occupancy Permitting Process Aesthetics/ Additional Design Details/ Links of Anchorage Structure: Max. size is None. Owner occupancy Acessory dwelling units are a per- Formerly The Anchorage Assembly the larger of either 900 is not required. mitted use in all zoning districts. required recently passed massive ft' or 40% of the primary Applicants must obtain a building a purpose reforms to their ADU ordi- dwelling up to 1200 ft'. or land use permit from the Devel- statement on nance to eliminate barriers Max. height of a detached opment Services Department and appearance and and encourage develop- ADU is 25 ft. If ADU is built submit all required documents to character, but ment. Removing owner over a garage, height max. the Building Safety Department at it was removed occupancy requirements extended to 30 ft. No 4700 Elmore Road. Applicable per- in a massive (previously homeowners limit on the number of mit fees vary. For projects under overhaul ofthe had to live on the property bedrooms. $40k, the permitting fee is $175 ADU code in at least 6 months out of the Lot: ADUs allowed in all per inspection used. Additional 2023. year) opened an additional residential and commercial fees for residential plan review, 10,500 single family rental zones whether there is building safety review, and land homes to ADU develop - another dwelling. Also use plan review add an additional ment. By allowing ADUs allowed on all kinds of $75+ each. on multifamily homes, an housing, including large, estimated 8,000 properties multi -family buildings. became newly eligiblef Setbacks restrictions are or a bonus dwelling. You the same as those imposed can find more information on the principal structure about these changes at the with exceptions for ADUs Municipality of Anchorage's taller than 15 ft. ADU "Accessory Dwelling Unit (ADU) Project Page" doors may face the street. Residential zoning regulations in both the City of Homer and the Matanuska-Susitna Borough specify that accessory dwelling units are"by-right"permit- ted uses in most single-family and some commercial districts. The Matanuska-Susitna Borough allows two attached or detached accessory dwelling units not exceeding 50% of the total floor area of the primary residence in single-family residential districts, but they can only be used for"guests, family members, or persons provid- ing domestic or health services to the residents of the principal structure" (Listed under Matanuska-Susita Borough Code in section 17.75.060(B)(5)). In 2011, Homer's city council passed an ordinance making accessory dwelling units a permitted accessory building to a single-family dwelling in two Residential Districts and the Central Business District. The ordi- nance stated that the change to municipal code was intended to"increase the supply and diversity of housing, protect community character, and encourage infill."The ordinance provided no specific regulations regarding parking, design, or lot size, stating only that one ADU was allowed per single-family dwelling and that the ADU must be "smaller than the primary dwell- ing"(Ordinance 11-44(S)). Simply altering existing zoning regulations to allow ADUs without providing specific regulations and guid- ance may not be enough to meaningfully encourage development. Though experts consider designated construction of an accessory dwelling unit as a per- mitted use for all single-family residences as the gold standard for encouraging ADU development, doing this alone can leave interested homeowners feeling confused or uncertain. Additionally, such opaque regulations can allow development that those who are resistant to increased density find upsetting or inflam- matory, prompting pushback and calls for increased restrictions. ADU-specific regulations can avert such backlash. Page 50 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS This publication is not a comprehensive list of all ADU ordinances in Alaska. To check if your community has an ADU specific ordinance, you can look up your municipal code at library.municode.com, your local government's website, or contact your city clerk. If you are confused about what codes apply to you, consult the brief overview below on how planning powers are divided in Alaska. 2.1 overview of Powers and Duties of Boroughs & Cities in Relation to Planning, Platting & Land Use Regulation III �.e Borough 777 The borough or unified municipality must exercise the powers areawide, but not necessarily in accordance with AS 29.40 First Class Borough The borough must exercise the powers areawide; in accordance with AS 29.40; the borough may allow cities to assume such powers within their boundaries Second Class Borough Same as for a first class borough City Governing Structure Home Rule City Planning, Platting & Land Use Regulation Powers Cities in unorganized boroughs must exercise the powers; if in an organized borough, it may be permit- ted by borough to exercise the powers First Class City Same as for a Home Rule City, except exercised in accordance with AS 29.40 (governance by assembly) Second Class City The City is not required to exercise powers, but may be permitted in the manner described for First Class Boroughs References: AS 29.35.260(c) AS 29.35.260(c) Page 51 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. 8 1 AKDU'S AND DON'TS 3.0 Best Practices to Encourage ADU Development In recent years, communities across the United States have turned to ADUs to address the affordable housing crisis. Experts in planning, policy, design, and aging have dedicated considerable time and energy to studying these communities to understand what works and what does not. A recommended first step for communities interested in increasing ADU development is the creation of a dedicated ADU ordinance. This clarifies the ADU development process for applicants and municipal officials and removes barriers that may have been hindering development under existing general zoning regulations. Section 3.1 provides a brief overview of the "Dos" and "Don'ts" of creating ADU-friendly zoning ordinances. Section 3.2 goes in depth into these recommendations, providing questions and considerations for com- munities seeking to improve their existing ADU regulations as well as additional guidance for those who are considering creating an ADU-specific ordinance for the first time. Creating an ADU-specific ordinance and/or focusing on reducing regulatory barriers is not the most effective approach for encouraging ADU development in communities that have no zoning regulations. If you have no exist- ing zoning regulations your largest barriers are likely construction costs due to a lack of contractors or shipping expenses. The most relevant advice for these communities is in section 5 dedicated to financing recommendations. 3.1 Creating ADU-Friendly Regulations ✓ Blanket use permissions for ADUs in all areas zoned for single-family housing. ✓ Allowing ADU development "By-right"/ministerial approval rather than through a discretionary approval process. ✓ Clear, objective standards intended to mitigate environmental hazards and impact on city resources ✓ Regulations should reflect community values without hindering development. ✓ Set a realistic timeline for producing decisions. ✓ No additional off-street parking requirements. ✓ Reasonable size/height/setback requirements that ensure resulting unit can meet the needs of long-term rentals and aging individuals. essive Size/Height/Setback Restrictions 7-- hibit development in dense areas with smaller lots where demand for rentals is likely higher. ead to"micro" units that can make it difficult to ensure bathrooms and living spaces are of adequate size to accommodate accessibility devices such as wheelchairs or allow caregiver support. X Discretionary Permitting Processes — Creates uncertainty and slows development timelines. X Off -Street Parking Regulations — Stifles development on smaller lots. X Owner -Occupancy Requirements — Can impact appraised home values and complicate rental configurations, suppressing available units. X Aesthetic Design Standards — Makes construction more costly and technically complex. — Vague rules add subjectivity to conditional permitting processes. Page 52 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS The immense diversity in zoning practices, environments, and needs across Alaska communities means that there is no one -size -fits -all approach to increasing development of accessory dwelling units.The considerations included below are split into two buckets, those for communities that have an existing ADU-specific ordinance and those that do not have a specific ordinance but maintain robust zoning and permitting regulations, but the recommendations are relevant to local officials in either position. IF YOU HAVE AN ADU-SPECIFIC ORDINANCE IN PLACE: THE PERMITTING PROCESS Does your ordinance allow ADUs "by right" or subject to discre- tionary approval / a conditional permitting process? "BY RIGHT": Allowing ADUs by right means that anyone who complies with the existing regulations may build an ADU. An application may still be involved, but it is subject to purely ministerial approval (AARP — Expanding ADU Development, 42). Research on ADUs across the U.S. shows that by right approvals encourage ADU development because they remove uncertainty and are usually much quicker than discretionary processes. DISCRETIONARY/CONDITIONAL APPROVAL: There are many valid reasons for local officials and planners to favor a discretionary approval process for ADUs, especially if there is community resistance ADU devel- opment. However, subjecting all ADU development to a conditional permitting process has been shown to greatly discourage development. Discretionary approval processes are often opaque and subjective, which can be intimidating and burdensome for applicants. SPLIT PROCESSES: It is common to allow by right approval for ADUs if they fit all the required regulations and require applicants who do not meet the requirements apply for exceptions through a conditional permitting pro- cess. This can be helpful for some communities, especially if within zoning districts lot sizes are nonuniform and access to city sewage/water/electricity varies. However, if you are currently operating this way, it is important to examine how ADU applications have split between the two processes. If you find that so far, most applicants have had to go through a conditional permitting process, you should reconsider if your baseline standards are too strict. • Consider: Are there clear standards that applicants have a difficult time meeting, such assize limits, parking requirements, or design regulations? How long does your permitting process take? Lengthy and undefined permitting processes create uncertainty and stall development. Experts recommend that at minimum, local officials publish a realistic timeline for their review processes and stick to a set timeframe for producing decisions. Ideally, that timeframe is as quick as possible. Page 53 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS IF YOU ALREADY HAVE AN ADU-SPECIFIC ORDINANCE IN PLACE: OFF-STREET PARKING Does your ordinance require additional off-street parking spaces? If you require additional off-street parking spaces, is the requirement equal to or greater than that for a single-family home? Requiring any additional off-street parking spaces for ADUs can stifle development, especially for those hoping to build on smaller lots. Experts recommend no additional off-street parking requirements for ADUs. Usually, single-family zoning regulations already require several off-street parking spots for the principal dwelling, which can often meet the needs of accessory dwelling, especially if it is constructed for an existing member of a household. Community concerns about public street parking can be mitigated by restricting off-street parking requirements to certain zoning districts of concern, such as commercial business districts and the residential areas that border them. But even in these cases, mandating more than one additional off-street parking space is unreasonable considering that ADUs rarely accommodate more than 2 people. IF YOU HAVE AN ADU-SPECIFIC ORDINANCE IN PLACE: SIZE/HEIGHT/SETBACK REQUIREMENTS Certain zoning restrictions can inadvertently hamper construction based on universal design standards. Square footage restrictions can make it difficult to ensure bathrooms and living spaces are of adequate size to accommodate accessibility devices such as wheelchairs or caregiver support. Restrictions regard- ing the ADUs proximity to the primary dwelling and/or to the edge of the lot can make it difficult to construct an entrance that is both covered and allows a car to deliver a person right to the door. Communicating accessibility needs to your builder can be intimidating and difficult. Universal design prin- ciples offer helpful guidance about how to construct ADUs to meet the mobility needs of aging individ- uals. Universal Design is defined as "an approach to design that recognizes and accommodates the ordi- nary changes people experience over their lives due to aging and life circumstances. As such, universal design benefits people through all life stages, including children and adults" (Recommendations for Essential and Advanced Universal Design Features and Product Characteristics in New Single -Family Housing, 2009). Additional information about accessible design and universal design principles can be found at the end of this publication. Does your ordinance have a size limit for ADUs? If yes, are the square footage require- ments based on a ratio relative to the primary residence? Size regulations tying the size of the ADU to a percent of the primary dwelling make adding an ADU to a larger home easy but make adding an ADUs prohibitive for smaller homes. Page 54 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS Excessive size limits can hinder the development of accessible living spaces. If your community is interested in encouraging ADUs to facilitate aging in place, excessive size restrictions can make the resulting accessory dwelling unit inaccessible to seniors and all populations with mobility needs. Highly restrictive square footage restrictions can make it difficult to ensure bathrooms and living spaces are of adequate size to accommodate accessibility devices such as wheelchairs or allow caregiver support. Does your ordinance have setback requirements? Municipalities should avoid imposing setback requirements that would result in excessively small developable areas because this can lead to "micro" units that fail to meet the needs of long-term renters and aging individuals. Restrictions regarding the ADUs proximity to the primary dwelling and/or to the edge of the lot can make it difficult to construct an entrance that is both covered and allows a car to deliver a person right to the door. Excessive setback requirements can also inhibit ADU development in smaller and moderately size lots. Does your ordinance have height requirements? Excessive height requirements (such as 10 or 12 ft) inhibit two story ADUs, which can incorporate design elements, such as a mezzanine floor, that make the best use of the small space. Does your ordinance impose minimum lot size requirements? Minimum lot size requirements inhibit development in more dense single-family districts with smaller lots where demand for rentals is likely higher. An ADU Built Above a Garage in Anchorage. Source: Siahtline Institute. 'Anchorage Needs More Moderately Priced Homes: Let's Start with ADUs" (2021). Page 55 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS IF YOU ALREADY HAVE AN ADU-SPECIFIC ORDINANCE IN PLACE: OCCUPANCY RESTRICTIONS Does your ordinance have occupancy requirements? Putting restrictions about how ADUs can be used by homeowners can be important to ensuring that ADU development meaningfully expands the community's affordable housing stock. Areas highly dependent on tourism may choose to prohibit ADUs from being used for short-term rentals to ensure that they will be accessible to full time residents. However, prohibiting homeowners from using ADUs as rentals to nonfamily members dramatically inhibits development. In addition to being self-defeating for municipalities hoping to increase their affordable housing stock, homeown- ers often rely on future rental income to finance ADU development, subsidize increased property taxes, and generate income during retirement. Even if rentals are allowed, owner -occupancy requirements are generally discouraged by housing experts. Mandating that homeowners must live in the primary residence to rent the ADU creates a myriad of legal burdens. This requirement means that if they choose to move, they cannot legally rent out both units. If they want to allow another family member to live in the primary residence, they must add them to the deed to continue renting the ADU. If a person inherits a single-family home with an ADU, they are unable to rent out both residences unless they move into the primary residence. Homeowners also are prevented from living in the ADU and renting out the primary dwelling. These complications can impact appraised home values and further restrict available rental properties. • Caveat: Municipalities interested in encouraging tourism but concerned about mitigating its impacts in residential areas may prefer to impose own- er -occupancy requirements only for ADUs used for short-term rentals. IF YOU ALREAC HAVE AN ADU-SPECIFIC ORDINANCE IN PLACE: AESTHETIC STANDARDS Does your ordinance impose discretionary design standards related to neighborhood character and aesthetic compatibility? Community concerns about how ADUs will influence neighborhood character and aesthetics are common. Regulations imposing discretionary design standards may have been important to garnering the political support necessary to pass an ADU ordinance. Yet, it is important to evaluate if the goals of these requirements are worth the increased burden to applicants. Aesthetic design standards increase costs and add technical complexity to the ADU construction and permitting processes. Requiring ADUs to match the appearance of the principal dwelling or to be constructed to maintain the appear- ance of a single-family structure can hinder accessible design, delay construction, and intimidate otherwise interested homeowners. When these provisions are vague, they create uncertainty for applicants and introduce considerable subjectivity and bias to the permitting process. Page 56 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS IF YOU DO NOT HAVE AN ADU-SPECIFIC ORDINANCE, BUT THERE ARE EXISTING REGULATIONS REGARDING PERMITTING AND CONDITIONAL USE Do you have existing ADUs in your community? If yes, what processes have homeowners gone through to build them? In communities where ADUs can already be created by right, creating an ADU-specific ordinance may not be necessary. Rather, an informational campaign or a dedicated grant program may be more effective. Do you have existing restrictions concerning structural changes in single-family residential districts? Adding an accessory dwelling unit to a single-family home may already be a permitted use in your code. Alternatively, your existing code could consider the addition of an accessory dwelling an a violation of single and multi -family housing zoning regulations, deeply complicating the ADU development process. What is your conditional permitting process like? It is important to realistically evaluate the time, effort, and objectivity of your existing process, as it can greatly impact the development of ADUs if you choose to create an ADU ordinance that relies partly or entirely on your existing conditional permitting process. • Do applicants often have to apply several times before getting approval? • Are there municipal staff members dedicated to sup- porting applicants through the process? • How frequently does your planning commission review applications? • Do planning commission meetings regularly fail to cover all the necessary topics/applications because there is too much on the schedule? Does your community have concerns about infill and/or increased density? Is political and community sentiment particularly favorable or hostile toward ADUs? It may be difficult to judge public sentiment about ADUs specifically, but prior hostility to multi -family housing developments in areas with majority sin- gle-family homes can indicate there may be pushbacks to encouraging ADU development. When drafting an ADU ordinance, it is important to identify and address community concerns. ADU ordi- nances can be curated to the specific needs of your community while still following the recommendations of experts. Certain approaches may include: • Instituting by right permitting processes for ADUs in some zoning districts and requiring a discretionary use permit in others • Crafting different regulations for internal, attached, and detached ADUs. • Restricting use of ADUs as short-term rentals. 4 Page 57 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS 4.0 Financing ADUs in Your Community While ADUs are cheaper than constructing an entirely new single-family home, they can still be cost -prohibitive for many homeowners. In a 2022 survey of Anchorage homeowners with ADUs, over fifty percent of respondents reported that they earned over $150,000 annually (ADU ANC Survey). The Sightline Institute, a thinktank dedicated to promoting sustainable communities across the Pacific Northwest, estimates that attached ADUs created by modifying an existing structure cost about $32,000 on average in Anchorage. Detached ADUs requiring a newly built structure are estimated to cost about $79,000. For much of the rest of the state, especially the most rural regions, costs are likely much higher. In the North Slope Borough, construction costs per square root can range from $448 (in Nuiqsut) to $660 (in Point Lay) and more. Depending on the village, a 1,500 square foot home —only slightly larger than the average ADU—can cost between $672,000 to $990,000 (NSB Comprehensive Plan 2019). Municipal officials can reduce financial barriers in a variety of ways: Designated Municipal Funding Scheme Grant -Based Subsidies Municipalities across the country have established grant programs to subsidize the cost of ADUs. Providing cash subsidies to incentive ADU development allows communities to leverage the financial capacity of local homeowners and produce more affordable rent units at a fraction of the cost of a typical publicly funded affordable housing development. In 2018, the City and Borough of Juneau appropriated $480,000 for an incentive grant program providing up to $6,000 to homeowners interested in constructing and ADU. In August of 2023, the Assembly voted to expand this effort, creating the Accessory Dwelling Unit Grant program (ADUG). ADUG provides grants up to $13,5000 to 16 homeowners annually, allocated on a first come, first served basis. In addition to meeting all ADU regulations and passing a final inspection within two years of being issued a building permit, recipients must record a deed restriction agreeing not to use the ADU as a short-term rental (fewer than 30 consecu- tive days) for the first five years. More information can be found online and on the website for the City and Borough of Juneau. For municipalities that do not have the funds or polit- ical will to establish such a program, local officials can also look to establish partnership with local founda- tions to either fund a grant program or provide seed funding to local non-profit design, construction, and development organizations. Loans Local jurisdictions can also provide subsidies through low -interest loans, loan forgiveness, and by estab- lishing local loan pools. Low interest loans and loan forgiveness can be a more financially and politically viable option for some municipalities. Like the City and Borough of Juneau's ADUG program, eligibility for low interest loans and loan forgiveness can be restricted to homeowners who agree to use their ADU as a long term, affordable rental or for facilitating aging at home. Local loan pools leverage private loan funds generated from partnership with local banks and philanthropic organizations to provide below -market loans to income -eligible homeowners for ADU construction. Attached ADU Added to the Basement of a Juneau Home Through the ADUG Program Source. KTOO -Anchorage DoilyNews'Alaska cities, facing housing crunch, encourage backyard cottages and apartment additions" (2018). Page 58 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Property Tax Abatement The increased property tax burden resulting from the value added by an ADU can intimidate interested homeowners. Reducing or postponing that burden through property tax abatement can be a powerful incentive. In 2022, Anchorage Mayor Dave Bronson's adminis- tration proposed postponing property tax increases tied to the creation of an ADU for ten years. Assembly member Meg Zalatel proposed applying this abate- ment only to ADUs offered as long-term housing. Though this proposal was not adopted by the Assembly, a major overhaul of ADU regulations was passed in 2023. Whether, how, and to what end your local government is able to offer property tax exemptions varies by gov- erning structure. Interested officials should consult Title § 29.45.050 of the Alaska state statues, which identifies an extensive list of optional exemptions a municipality may enact. Design Incentives Design and development costs can force interested homeowners to pay thousands before they even break ground on a new ADU, especially if project plans must be revised multiple times during the permitting process. Municipalities can offset these costs by pro- viding free design and project support to applicants. Additionally, planning officials can save homeowners thousands of dollars by offering applicants the option to use pre -approved, permit -ready plans for ADUs of a range of sizes. Providing model plans can also reduce administrative burdens for municipalities by simpli- fying the permitting process and promote aesthetic standards favored by the planning commission without burdening applicants with additional regulations. (AARP ADU Design & Development) Construction & Permitting Incentives Permit and development fees can be a significant deterrent. Many municipalities have chosen to reduce permit fees, offer fee waivers, or completely remove fees for ADU permit applications. Doing this in conjunc- tion with removing other fees, such as infrastructure AKDU'S AND DON'TS impact charges, can make a significant impact on the total cost. Additionally, any measures you can take to facilitate a faster permit review process, such as hiring or training staff dedicated to ADU permit review, can meaningfully reduce costs. (AARP ADU Design & Development) Facilitating Economies of Scale Communities that struggle with exorbitant construc- tion costs often also have high rates of overcrowding and limited or no senior living facilities. Local officials can help reduce construction costs in rural regions by encouraging interested homeowners to work together to create economies of scale. Though it applies to new single-family homes, not ADUs, RurAL CAP's Mutual Self -Help Housing Program provides an excellent model of how economies of scale and"sweat equity"can operate in Alaska. Facilitated in partnership with USDA Rural Development and Alaska Housing Finance Corporation, the Mutual Self -Help Housing Program provides first-time home buyers with the opportunity to buy a home without a down payment. Groups of six to twelve participants work together to build one another's homes under the guid- ance of a RurAL CAP construction supervisor, providing at least 65% of the labor and working a minimum of 35 hours per week. All homebuyers contribute to the construction of all the homes, and no one moves in until every house is complete. The"sweat equity" created by the participant's labor eliminates the down payment and reduces their resulting mortgage, which are originated by RurAL CAP and can have interest rates as low as 1 %. For aging communities or those who cannot invest .sweat equity"for other reasons, prefabricated units are an excellent option to speed up the process and simplify logistics. Interested homeowners can possibly reduce design and transportation costs by approaching a prefabrication contractor as a group. Additional information about prefabrication options can be found at the end of this publication. Page 59 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS Additional Resources peroccihlc ndacinr- Northwest Universal Design Council (NWUDC): https://www.environmentsforall.org/ - The Council acts as an expert resource on universal design in the Pacific Northwest. Their website provides a simplified overview of the principles and guidelines of universal design, a detailed home checklist which provides essential guidelines for each room and element of a house as well as additional considerations, and a library of resources and research from organizations and universities across the country. • "Aging in Place Alaska" (University of Alaska Fairbanks Cooperative Extension Service): https:Hhomemods.org/materials/aging-in-place-in-alaska/ - This 20-minute video, narrated by Art Nash, Energy Specialist at the University of Alaska Fairbanks Cooperative Extension Service, examines universal design principles as they related to Alaskan homes. • Alaska Independent Living Centers - These are individual organizations which act as an access point for disability -related services for individuals across Alaska. - Southeast Alaska Independent Living (SAIL) operates the Home Modifications for Aging in Place (HomeMAPTM) Program, which provides expert evaluations of mobility and construction needs. A SAIL team conducts a home survey and produces a written report that lays out the homeowner's individualized needs. This report can then be used to guide construction and communicate design needs to contractors. > https://www.sailinc.org/home-modifications-for-aging-in-place/ - For those residing outside the southeast, Access Alaska and Arctic Access - Nome can provide information regarding programs and services that may be helpful during the design process. > Access Alaska: https://www.accessalaska.org/ > Arctic Access - Nome: https://www.facebook.com/people/Arctic-Access-I nc/100068189572892/ * Email: arcticaccessnome@gci.net • Alaska Organizations that are affiliated with or employ a National Association of Home Builders Certified Aging -In -Place Specialist. Those with this certification can provide expert advice regarding accessible design. - Alaska Housing Finance Corporation: https://www.ahfc.us/senior-support - Alaska Community Development Corporation: http://www.alaskacdc.org/ - Cold Climate Housing Research Center: https:Hcchrc.org/ Prefabricated Units • FabCab: https://fabcab.com/about/our-story-and-bios/ - A company based in Pacific Northwest specializing in incorporating universal design principles into prefabricated homes.Their founder is a member of the Northwest Universal Design Council. • Skyline Homes & Champion Homes: - National companies that supply manufactured homes through a nationwide network of independent dealers. These companies have manufacturers in Oregan and British Columbia and have shipped homes to Alaska. They also have model ADUs. Both companies have a search function to find retailers near where you live, but it is best to contact them directly for more detailed information about Canadian suppliers. - Skyline: https://www.skylinehomes.com/ - Champion: https://www.championhomes.com/ Page 60 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. AKDU'S AND DON'TS ADU Finance, Policy, & Development • "Accessory Dwelling Units: A Step by Step Guide to Design and Development" (AARP): https://www. aarp.org/pri/topics/livable-communities/housing/accessory-dwelling-units-gu ide-design-development/ • "Expanding ADU Development and Occupancy: Solutions for Removing Local Barriers to ADU Construction" (AARP and the American Planning Association): https://www.aarp.org/pri/topics/ livable-communities/housing/expanding-adu-development-solutions-local-barriers.html • "Overcoming Barriers to Bringing ADU Development to Scale" (Enterprise Community Partners): https://www.enterprisecomm un ity.orci/resources/overcom ing-barriers-bri ngi na-ad u-development-scale-11049 • The ABCs of ADUs: A guide to Accessory Dwelling Units and how they expand housing options for people of all ages (AARP): https://www.aarp.org/livable-communities/housing/info-2019/accessor -- dwelling-units-guide-download.html Powers and Duties of Boroughs & Cities in Relation to Planning, Platting & Land I-- o,......IAtinn • Alaska Planning Commission Handbook (Department of Commerce, Community, and Economic Development; Division of Community and Regional Affairs): https://www.commerce.alaska.ciov/web/ Portals/4/pub/Planning%20Commission%20Handbook%20Jan%202012.pdf • Planning Powers for Alaska Communities (Alaska Dept. Of Transportation and Public Facilities): https://dot.alaska.gov/creci//plannina/assets/Planning Power for Alaskan Communities.pdf • Alaska's Local Government: State Commitments, Local Roles and Responsibilities (Alaska Municipal League): https://www.akml.ora/wp-content/uploads/2023/02/AML-Govt-Primer-2023-revise-web.Dddf Page 61 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2.b. Page 62 of 232 Discuss Ordinance Amending Various Sections Of The Kodiak Island Borough... AGENDA ITEM #2. c. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION SUBJECT: Continued Discussion Of Policy Decisions On The Old Mental Health Facility Buildings ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: Assembly to discuss policy decisions of the future of these buildings. DISCUSSION: Assembly member Sharratt requested discussion of this item on July 25, 2024. The Assembly held a work session on September 26, 2024, and discussed funding, renovations, deed restrictions, and possible use. Manager Williams requested continued discussion of the future use of these buildings. ALTERNATIVES: Abate and Demolish Existing Facilities. FISCAL IMPACT: Project #1 - Abatement and Demo - $1,352,926. OTHER INFORMATION: Two part ROM estimate provided as directed. Project #2 - Reconstruction - $8,125,680. Kodiak Island Borough Continued Discussion Of Policy Decisions On The Old Mental Health Facili... Page 63 of 232 AGENDA ITEM #2.c. Jensen Yorba Wall Inc. 522 West 10th Street, Juneau, Alaska 99801 907.586.1070 jensenyorbawall.com Designing Community Since 1935 Date: October 25, 2024 To: Dave Conrad, KIB From: Corey Wall Re: KIB Mental Health Apartments Renovation (JYW No. 24027) Construction Scope & ROM Introduction To assist the Borough with budgeting, JYW was asked to develop the attached Rough Order of Magnitude (ROM) cost estimate for rehabilitating the Mental Health Complex. Although JYW staff have walked through and around the buildings several times in the past, an in-depth investigation was not undertaken for this work. The ROM was developed by JYW by looking at similar recent projects around the state and discussing the costs with contractors and cost estimation firms. If KIB decides to proceed with the work, this ROM should be verified with a professional cost estimate. Physical Description The complex, located at 717 Rezanof Drive, was originally constructed as apartment -style housing and, although the buildings were converted to other uses, they largely retain the original layout. The complex consists of three main buildings constructed in 1968 and a 41h building constructed later that was used as the KIB Projects Office. This ROM does not include any renovations to the Projects Office building. Building 101 and 102 are 2-story buildings which have a number of apartment units in a linear configuration. • Building 101 is 8,258 sf (4,129 sf footprint) and originally had 7 apartments: o four 3-bedroom units of 1,192 sf each o three 2-bedroom units of 960 sf each. • Building 102 is 7,342 sf (3,671 sf footprint) and originally had 7 apartments: o three 3-bedroom units of 1,192 sf each o two 2-bedroom units of 960 sf each o two one -bedroom units of 656 sf each Each apartment unit was originally 2-stories with a separate exterior entrance on the lower floor and internal stairs except for the one -bedroom units on end of Building 102 which were constructed above one another. In between Building 101 (located to the west) and Building 102 is a central single -story 478 sf Mechanical/Laundry Building. This building contains a central boiler which supplied heat to the apartments through hydronic baseboard heaters. The building still has a disused underground fuel -oil storage tank (UST) to the south as well as an above -ground tank located to the east. Jensen Yorba Wall Architecture Interior Design Construction page 1 of 3 Page 64 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2.c. The site is accessed from Egan Way to the north and east. There is a paved 18-stall parking lot to the north of the Mechanical/Laundry Building and an approximately 18-stall gravel parking lot to the east. The site slopes down about 30' from the from north to the SW corner, but the access sidewalk across the north side of the buildings is approximately level. Existing Documentation / Known Conditions JYW was provided with the original 1968 construction drawings as well as 2 pages from the 1995 plan which turned some of the apartments into connected offices. From our walk-throughs, we do not believe the units changed significantly from these drawings. JYW was also provided with the Phase I Environmental Site Assessment and Hazardous Materials Survey performed by Environmental Management, Inc. in 2022 as well as the Asbestos, Lead, & Mold Sampling Analysis Report prepared by NWFF in 2024. Although the hazardous materials are more completely described in those reports, asbestos -containing materials (ACM) are found throughout the buildings in the original flooring mastic, the wall texture and joint compound on the gypsum wallboard (GWB), and on the insulation on the heating piping. Project Goals • Turn the buildings back into usable apartments • Fully abate all hazardous materials • Retain the existing structure —including exterior openings, interior partitions, stairs, etc. wherever possible • Update mechanical and electrical systems and service so each unit can be metered separately In consultation with Environmental Management, Inc. this ROM scope proposes dividing the work into two separate projects. Project 1 will fully abate all hazardous materials, demolish the central Mechanical/Laundry Building and remove the UST. Because the ACM is found on so many materials throughout the buildings, the Project 1 demolition will be fairly comprehensive, and will be performed by an abatement contractor. Although this approach will require a full demolition to the building frame/studs, it will eliminate all hazardous materials and result in "like -new' envelope, finishes and building systems. Project 1: Abatement and Demo Scope • Building 101 & 102 Exterior o Remove exterior wall finishes to plywood sheathing, including windows & doors. o Remove roof shingles and underlayment. o Install new underlayment/temp roof membrane. • Building 101 & 102 Interior o Remove all GWB and other interior wall and ceiling finishes to bare studs/ceiling joists. This will include removal of all doors, cabinetry, plumbing fixtures, lights, etc. o Remove all flooring and mastic down to bare plywood subfloors o Remove all heat piping and insulation o Remove all domestic piping and wiring • Building 101 & 102 Crawlspace o HEPA vacuum soils Jensen Yorba Wall Architecture Interior Design Construction page 2 of 3 Page 65 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2.c. o Spray soils with lock -down encapsulant o Install fiber -reinforced vapor barrier o Install 2 layers of 2" rigid insulation with staggered joints Mechanical / Laundry Building o Fully abate and demolish building o Remove concrete foundations, fill with compacted substrate o Remove UST, fill with compacted substrate Project 2: Reconstruction • Building 101 & 102 Exterior o Exterior Wall (exterior): Install 2" of rigid insulation, building wrap, 3/4" furring, and expanded vinyl siding over existing sheathing. o Exterior Wall (interior): Install new batt insulation, poly vapor barrier, and GWB in/over existing studs o Install new fiberglass windows, including egress -compliant windows, in existing openings o Install new fiberglass entry doors in existing openings o Install new asphalt shingle roof over existing underlayment. Install new flashings and gutters. o Install new batt insulation with ventilation space in existing roof joists. Install 2" PIC with foil - face and taped seams under existing joists. Cover in GWB. Building 101 & 102 Systems o Install electrical service and meters for each unit o Install new "mini -split" electric heat pumps for heating/cooling o Install continuous exhaust fans in bathrooms and in kitchen hood. Install trickle supply vents in closets Building 101 & 102 Interior o Install new doors and frames in existing openings o Install new finishes, including GWB on walls, carpet in bedrooms and living spaces, sheet vinyl in entries and bathrooms, and vinyl tile in kitchens o Install new plam cabinetry and countertops, match original configuration o Install new LED lighting o Install new piping and plumbing fixtures, match original configuration • Site o Expand central parking lot to 28 stalls over location of removed Mechanical / Laundry Building o Add landscaping around parking areas & as required for privacy Next Steps Project 1 could be prepared for bidding fairly quickly. Environmental Management, Inc. believes that enough sampling has been done to allow for preparation of Abatement bid documentation without additional site trips or investigation. Demolition bid drawings could be prepared from existing documentation, although a site visit to verify as -built conditions may be helpful. Design of Project 2 could occur while the demo of Project 1 is underway. Reconstruction of the majority of apartments in their original configurations is almost certainly possible without significant structural or architectural modifications or upgrades. Verification of the existing floor construction between the two one - bedroom units in Building 102 would need to be undertaken to verify the horizonal assembly could be upgraded to meet acoustic and fire separation, otherwise these unit could be combined into a single 3- bedroom unit similar to the other 2-story units. Jensen Yorba Wall Architecture Interior Design Construction page 3 of 3 Page 66 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. KIB Mental Health Apartments Kodiak Alaska Rough Order of Magnitude Project Costs Jensen Yorba Wall October 25, 2021 Project 1: Abatement and Demo sf $/sf Abatement & Finish Demolition, Building 101 8,258 30 247,740 Abatement & Finish Demolition, Building 102 7,342 30 220,260 Abatement & Total Demolition, Mechanical Building 478 50 23,900 UST Removal 50,000 Subtotal 541,900 General Conditions (assuming off -island contractor) 45.00% 243,855 Estimator's Contingency 30.00% 235,727 Project 1 Construction ROM Estimate TOTAL 1,021,482 Total Gross Floor Area Cost Per Square Foot Project 1 Project Costs Construction Contingency Project Administration 10.00% 10.00% 16,078 64 102,148 102,148 Design Fees 8.00% 81,719 Construction Adminstration 2.00% 20,430 Permitting Subtotal, Project Costs 25,000 331,444 Project -1Project ROM Estimate TOTAL 1,352,926 Proiect 2: Reconstruction sf $/sf Reconstruction, Building 101 8,258 195 1,610,310 Reconstruction, Building 102 7,342 195 1,431,690 Sitework Subtotal 6,000 40 240,000 3,282,000 General Conditions (assuming on -island contractor) 35.00% 1,148,700 Estimator's Contingency 30.00% 1,329,210 Project 2 Construction ROM Estimate TOTAL 5,759,910 Total Gross Floor Area Cost Per Square Foot Project 2 Project Costs 15,600 369 Construction Contingency 10.00% 575,991 Project Administration 10.00% 575,991 Design Fees 6.00% 345,595 Construction Adminstration 2.00% 115,198 Special Inspections (Soil) 15,000 Furnishings, Fixtures & Equipment (fully -furnished) 5.00% 287,996 Electrical Service 250,000 Data/ Comunication Systems Service Permitting 100,000 100,000 Subtotal, Project Costs 2,365,770 Project 2: Project ROM Estimate TOTAL TOTAL PROJECT COSTS 8,125,680 9,478,606 Page 67 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. ADDITIVE ALTERNATE "B` _ L x :I SEE NDTE 2 � .1 __-- ,z Igo {{ J [6_ ,od I .. __.. '_ ------------------- .. _. KIB Mental Health Apartments, 1968 Site Plan F h ONY E IE VP-TION n>�i s iHn�e IIg' 11 ROAR E�evATI,�tJ KIB Mental Health Apartments, 1968 Elevations I i/ n: 5HcnlniM.. Page 68 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. oFs�o I. I — - - 5 nwK KIB Mental Health Apartments, 1968 Building 101 Floor Plans 17 i �IlGr1711FwgQ..1 1 1lfr'' iK�l,. I ISs IHII -- unit-G APi KIB Mental Health Apartments, 1968 Building 102 Floor Plans Page 69 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. KIB Mental Health Apartments Kodiak Alaska Rough Order of Magnitude Project Costs Jensen Yorba Wall October 25, 2021 Project 1: Abatement and Demo sf $/sf Abatement & Finish Demolition, Building 101 8,258 30 247,740 Abatement & Finish Demolition, Building 102 7,342 30 220,260 Abatement & Total Demolition, Mechanical Building 478 50 23,900 UST Removal 50,000 Subtotal 541,900 General Conditions (assuming off -island contractor) 45.00% 243,855 Estimator's Contingency 30.00% 235,727 Project 1 Construction ROM Estimate TOTAL Total Gross Floor Area 1,021,482 16,078 Cost Per Square Foot 64 Project 1 Project Costs Construction Contingency 10.00% 102,148 Project Administration 10.00% 102,148 Design Fees 8.00% 81,719 Construction Adminstration 2.00% 20,430 Permitting Subtotal, Project Costs 25,000 331,444 illProject 1 Project ROM Estimate TOTAL 1,352,926 Project 2: Reconstruction sf $/sf Reconstruction, Building 101 8,258 195 1,610,310 Reconstruction, Building 102 7,342 195 1,431,690 Sitework 6,000 40 240,000 Subtotal 3,282,000 General Conditions (assuming on -island contractor) 35.00% 1,148,700 Estimator's Contingency 30.00% 1,329,210 Project 2 Construction ROM Estimate TOTAL 5,759,910 Total Gross Floor Area 15,600 Cost Per Square Foot 369 Project 2 Project Costs Construction Contingency 10.00% 575,991 Project Administration 10.00% 575,991 Design Fees 6.00% 345,595 Construction Adminstration 2.00% 115,198 Special Inspections (Soil) 15,000 Furnishings, Fixtures & Equipment (fully -furnished) 5.00% 287,996 Electrical Service 250,000 Data/ Comunication Systems Service 100,000 Permitting 100,000 Subtotal, Project Costs 2,365,770 Project 2: Project ROM Estimate TOTAL TOTAL PROJECT COSTS 8,125,680 9,478,606 Page 70 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2.c. BIHA Costs 180,243 28,548 203,085 245,337 458,874 31,791 1,147,878 Total without site and structure 3,644 315 Page 71 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... 0 0 c m a 0 c 0 c 0 0 0 O 0 0 m 0 0 0 O cu O a z m D v m v v 0 n O a D c m Q 0 cn c U) U) 0 O_ O Ci 0 CD n O 7 (n O ZT lVmm Q CD Z) CD S n N O v W O_ N W N • "t"�� V -� 1 �; _' � KiT HEN —OiNi I - t _ _ —_ _ _ f "_ etiesT .cr =�=1 I saA. _-wr ^i iEN 1FA [ "CMrTYN � FMB .4 Gii r.cr qn 19 s • • - � s ; ,r—•-.... r t J• _ i 1• s .,.e. c ; n 0 a Z" c m Q 0 c" c U) U) 0 0 0 0" Z3 0 ZT Q Z) v v v 0 N W N EXTERIORVIEWS -ADMIN AND OFFICES 09.2a,2024 n m z o n m N Lon I EXTERIORVIEWS MEETING ROOMS AND RESIDENTIAL UNITS n 0 Z c m Q 0 c U) T. 0 0 T). Z3 0 ZT 0 Q (D Z) v 2 m v v 2. 0 N W N 777 OFFICE BUILDING INTERIOR P C) 0 c m a 0 c 0 c 0 cn 0 CD 0 0 0 CD Q z CD D 1--t a) 2 CD a) r-t v 0 MODIFIED INTERIORS C) 0 c m a 0 Fn' 0 c 0 cn 0 0 CD 0 CD a m D v 2 m v 0) 0 WATER DAMAGE WITH MOLD - SINGLE UNIT W7 n 0 a Z c m Q 0 c c U) U) 0 CD 0 Z3 0 ZT CD CD Z) CD CD 0 N W N SINGLE UNIT EXTENSIVE WATER DAMAGE AND MOLD —ABATEMENT REQUIRED n 0 a Z c m Q 0 c c U) U) 0 0 0 Z3 0 ZT 0 Q Z) v 00 0 0 N W N ADJACENT UNITS -DRYWALL DAMAGE FROM MOISTURE -POSSIBLE MOLD/MILDEW .20.2021 09:15 n 0 Z c m Q 0 U) T. 0 0 T). Z3 0 ZT 0 Q Z) v v a) 2. 0 N W N • ORDER ESTIMATE BASED ON HAZMAT SURVEY, ABATEMENT FOR REMODEL • ORDER ESTIMATE FOR DEMOLITION -WILL REQUIRE ABATEMENT • REMODEL WITH REGARD TO RESTRICTIONS PLACED ON THE PROPERTY • DEMOLISH WITH REGARD TO RESTRICTIONS PLACED ON PROPERTY • REMODEL IN EFFORTTOASSIST IN HOUSING CRISIS • SCHOOL DISTRICT OR HEALTH CARE DIRECTED HOUSING UNITS - 12 REMODELED HOUSING UNITS - SATISFY PROPERTY RESTRICITONS • DOESTHE KIBWANTTO EXPAND KANDLORD RESPONSIBILTIES? • POLICY DECISIONS FORTHE PATH FORWARD 0 0 c m a 0 c 0 c 0 cn 0 CD 0 0 0 CD Q z CD a) CD a) 0) 0 v CD 00 N 0 N W N HEATING AND HOT WATER UPGRADE C) 0 c m a 0 c 0 c 0 cn 0 CD 0 0 3 cu a CD D v m v v 0 CD 00 W 0 N W N SAMPLING PERFORMED —ADDITIONAL REQUIRED ASBESTOS, LEAD AND MOLD EVIDENT 2'Nl"R,Y 2 WAY CCU , 2C . 2C24 C9. 8 n 0 Z c m Q 0 U) T. 0 0 T). Z3 0 ZT 0 Q Z) v v a) 2. 00 0 N W N • REQUIRE NEW HEATING SYSTEM -INCREASE HOT WATER CAPACITY DUETO LIVING QUARTERS DEMAND • SEISMIC UPGRADE REQUIRED (SHEER WALLS) • LIKELY REQUIRE UTILITY UPGRADE -UST REMOVAL • INSTALL FIRE SPRINKLER SYSTEM BASED ON CODE REQUIREMENTS • ADDITIONAL PARKING REQUIREMENT • PLAY AREA FOR CHILDREN • PROPERTY MANAGEMENT 0 0 c m a 0 c 0 c 0 0 0 O 0 0 m 0 0 0 O cu O a z m D v m v v 0 AGENDA ITEM #2. c. KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION # 18 FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA DATE SUBMITTED: `I. 2S . 202q Requestor:7R�j"'-?' , At'kteN7-T Preferred Mtg. Date: 202� Item Description: l ha J b \ S REQUEST FOR ASSISTANCE STAFF TO PREPARE AN ORDINANCE OR RESOLUTION Requestor 1: Requestor 2: Detailed Description: NoNE NV -%\a LEGAL OPINION REQUEST Requestor 1: Requestor 2: Date when you want the opinion by: Detailed Description: No,'-t AT '` t14 . See pertinent code sections on the back. Revised on: 20240607 nj Page 86 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2.c. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be placed on the agenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30. 100(G. 1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C) (4). KIBC 2.30.050 (C.4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under section 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor and an assembly member may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2.30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: l /��,/ Received date: v 7! �(O Provided a copy to the Manager on: al� A 60 days deadline: d9 OZ Scheduled on the meeting agenda of: Notes: KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borough clerk for inclusion with the agenda item Revised on: 20240607 nj Page 87 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. Dave CV -A` 07 a STTf �s Health Facilities Space Evaluation — First draft of the Phase 1 report has been provided to staff for review. Architects are scheduled to be in Kodiak August 14th through 16th. PKIMC , KCHC and KIB representatives and will meet to discuss the draft and discuss the finalized version for formal presentation by the end of September. Old Mental Health Facility — Requesting a work session agenda item to discuss policy decisions of the future of these buildings. Landfill — • ADEC Solid Waste Inspection in the middle of September. • Staff is continuing to investigate the Compliance Order by Consent (COBC) associated with the storm water violations. • Staff will advertise the floor replacement this week. • Staff has advertised an additional roof Styrofoam give away to be held on July 27 from 10:00 am to 2:00 pm (this Saturday) Staff anticipates another event within two weeks. • A Baler Operator 1 has been hired. This person is to start 7/26/2024. Welcome aboard Matt Hrdlicka. • A Fall Commercial Hazardous Waste Event is scheduled for October 1s1 and 2nd This event will target commercial entities for collection and disposal for hazardous materials. KIBSD — Petersen Roof — Job is progressing. The PVC membrane has been installed and the entire roof is watertight. Substantial completion has been achieved. Metal siding and coping is to be installed as materials arrive on site. Exterior Insulation Finishing System (EFTS) has been discovered to contain significant rotten wood components. This exterior finish will be waterproofed with flashed to stabilize the assemblies and evaluated for a future project. Job site is being inspected several times per day by E/F Staff. Damage has been found associated with the fire alarm system. Conduits and conductors were penetrated and compromised by the installation of roofing screws. Water penetration has compromised detector devices. Contractor has hired and electrician and fire alarm contractor to effect repairs. Electrical conduit and conductor replacement has started 7/24. The fire alarm system has been taken offline except for the sprinkler alarms due to multiple callouts. Both the City of Kodiak Fire Chief and Coast Guard Fire have been briefed and concur with the status. Daily updates are being provided to each department. This is a priority Page 88 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2. c. repair and will continue to be inspected and monitored each day. The KIBSD Staff and Superintendent have been notified and toured the facility on 7/24. East Elementary — A small sink hole has been excavated and an eight -inch log was found two feet below the asphalt. A void was created with settling. A trench approximately three feet wide by twelve feet long will be excavated to determine the extent of the log and look for additional buried material prior to planning and design for a proposed new asphalt parking area at the East Elementary Parking area. The area will be excavated and backfilled prior to the start of school. Asphalt will be patched when it becomes available. Leachate Treatment Plant —Staff continues to process as much leachate as the plant will allow to reduce the stored quantity. • Awaiting final shipping dates for the new pump / impeller configuration for shipment. • Thanks to Louis Lasky for his five plus years of service at the Leachate Treatment Plant. Louis has chosen to move on to warmer climates and pursue his future in the Lower 48. He has been a dependable staff member during his time of employment. • Staff has been interviewing for Operator Trainee Position. Long Term Care — Material that was remediated in the cell has been spread. This material will be stirred mechanically, allowed to for the summer and evaluated to determine if the material has been successfully remediated. Finance Depantment Annual Audit — Final audit will be completed in September. Property Taxes — • Real Property: Staff has received the court for a Clerk's Deed to four unredeemed properties. • Personal Property: Borough staff is continuing to file small claims documents with the court for delinquent personal property accounts. Page 89 of 232 Continued Discussion Of Policy Decisions On The Old Mental Health Facili... AGENDA ITEM #2.d. SUBJECT: ORIGINATOR KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION Discussion Of Personal Property Tax Exemption Ordinance Aimee Williams, Borough Manager RECOMMENDATION: Assembly to discuss the proposed Ordinance. DISCUSSION: This proposal was initiated by former Assembly member James Turner and Assembly member Steven H. Ames. They have asked staff to draft an ordinance to modify KIBC 3.35.030, which pertains to Real and Personal Property Exempted From Taxation, by increasing the current personal property tax exemption by an additional $100,000, bringing the total exemption to $250,000. According to the provisions outlined below, the ordinance must be included on the agenda by November 18, 2024. The requestor(s) retain the right to withdraw their request at any time. During the last agenda setting meeting, Mayor Arndt, Assembly Member Smiley, and Manager Williams determined that the financial impact of this ordinance should be discussed before an ordinance was prepared. KIBC 2.30.100 (G)(1) Requests for Staff Assistance, states the following: During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with KIBC 2.30.060(C)(4). KIBC 2.30.060 (C)(4) 4. Agenda items prepared by staff at the request of the mayor or by two or more assembly members under KIBC 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. Alaska Statute 29.25.020 outlines the procedure for introducing and setting an ordinance for a public hearing in a municipality. It specifies that an ordinance may be introduced by a member or committee of the governing body, or by the mayor or manager. The governing body must set the ordinance for a public hearing by a majority vote. Additionally, Title 29 requires notice of and a public hearing on the ordinance, with specific timelines for each step. ALTERNATIVES: Kodiak Island Borough Page 90 of 232 Discussion Of Personal Property Tax Exemption Ordinance AGENDA ITEM #2. d. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Discussion Of Personal Property Tax Exemption Ordinance Page 91 of 232 AGENDA ITEM #2. d. KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA DATE SUBMITTED: Requestor: JAPQFG_ 714 AAtdE Preferred Mtg, Date: GN GV eozZ Item Description: REQUEST FOR ASSISTANCE STAFF TO PREPARE ORDINANCE 6R RESOLUTION Requestor 1: _14*46s ` tiiWC0C_ Requestor 2: Detailed Description: S', 3 ,4,,,ry 1�'Sr7r%!G s Z9 • c�X�� T,sr r�Qsr ��Qo.o6© Q� .9gSFSSED I�A�U o - AA/ ADD1T/Od/At. Ozgb OCU &8ot/9 �)V SCAf n STidr&,C �094 i ,(/&r A,104r TiV.d ✓ T�✓C %0rOL. 1,idLHf_' - LEGAL OPINION REQUEST Requestor 1: Date when you want the opinion by: Detailed Description: See pertinent code sections on the back. Requestor 2: Revised w 20240607 nj Page 92 of 232 Discussion Of Personal Property Tax Exemption Ordinance AGENDA ITEM #2.d. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be placed on the agenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30. 100(G. 1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C) (4). KIBC 2.30.050 (C.4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under section 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor and an assembly member may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2.30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: r Received date: D� �`1 Provided a copy to the Manager on: qbo/ 60 days deadline: I U do Scheduled on the meeting agenda of: Notes: KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borough clerk for inclusion with the agenda item Revised on: 20240607 nj Page 93 of 232 Discussion Of Personal Property Tax Exemption Ordinance AGENDA ITEM #2.d. KIBC 3.35.030, Real and personal property exempted from taxation Page 1 of 1 3.35.030 Real and personal property exempted from taxation. t A. The following described properties shall be exempt from any and all taxation otherwise imposed under the foregoing sections: L 6. As described in AS 29.45.030(e), the first $150,000 of assessed value of the real property owned and occupied as the primary residence and permanent place of abode by: a. A resident 65 years of age or older; b. A disabled veteran; or c. A resident at least 60 years old who is the widow or widower of a person who has previously qualified for an exemption for the same residence under subsection (A)(6)(a) or u of this section, and who jointly owned or occupied the residence with the requestor. The Kodiak Island Borough Code is current through Ordinance FY2025-04, passed August 15, 2024. Page 94 of 232 Discussion Of Personal Property Tax Exemption Ordinance AGENDA ITEM #2, d. 200,000 Exemption 946 Exemptions City Service Area #1 Service Area #1 Service Area #1 Service Area #1 Monashka / Bayview Mission Tidegate Womens Bay Flat Borough mill rate Total Senior Disabled Total $ Amount Exempt Mill Rate Total Exempted 330 36 366 $ 73,200,000.00 11.25 $ 823,500.00 30 10 40 $ 8,000,000.00 12.35 $ 98,800.00 207 48 255 $ 51,000,000.00 12.25 $ 624,750.00 14 0 14 $ 2,800,000.00 12.5 $ 35,000.00 73 1 74 $ 14,800,000.00 12.4 $ 183,520.00 10 3 13 $ 2,600,000.00 12.22 $ 31,772.00 33 3 36 $ 7,200,000.00 11.00 $ 79,200.00 7 13 20 $ 4,000,000.00 13.75 $ 55,000.00 121 7 128 $ 25,600,000.00 9.25 $ 236,800.00 825 121 946 Total $ 2,168,342.00 *Important Notes 1) Not everyone who applies receives the entire $150,000 exemption, some are only partially eligible 2) These figures are based off of 946 exemptions, however, there ore 985 eligible 3) The number of eligible properties has been going up each year. State Mandated 150,000 Exemption 946 Exemptions Senior Disabled Total exemptions $Amount Exempt Mill Rate Total Exempted City 330 36 366 $ 54,900,000.00 11.25 $ 617,625.00 Service Area #1 30 10 40 $ 6,000,000.00 12.35 $ 74,100.00 Service Area #1 207 48 255 $ 38,250,000.00 12.25 $ 468,562.50 Service Area #1 14 0 14 $ 2,100,000.00 12.5 $ 26,250.00 Service Area #1 73 1 74 $ 11,100,000.00 12.4 $ 137,640.00 Monashka /Bayview 10 3 13 $ 1,950,000.00 12.22 $ 23,829.00 Mission Tidegate 33 3 36 $ 5,400,000.00 11.00 $ 59,400.00 Womens Bay 7 13 20 $ 3,000,000.00 13.75 $ 41,250.00 Flat Borough mill rate 121 7 128 $ 19,200,000.00 9•25 $ 177,600.00 Total 825 121 946 Total $ 1,626,256.50 Proposed 250,000 Exemption 946 Exemptions Senior Disabled Total $Amount Exempt Mill Rate Total Exempted City 330 36 366 $ 91,500,000.00 11.25 $ 1,029,375.00 Service Area #1 30 10 40 $ 10,000,000.00 12.35 $ 123,500.00 Service Area #1 207 48 255 $ 63,750,000.00 12.25 $ 780,937.50 Service Area #1 14 0 14 $ 3,500,000.00 12.5 $ 43,750.00 Service Area #1 73 1 74 $ 18,500,000.00 12.4 $ 229,400.00 Monashka /Bayview 10 3 13 $ 3,250,000.00 12.22 $ 39,715.00 Mission Tidegate 33 3 36 $ 9,000,000.00 11.00 $ 99,000.00 Womens Bay 7 13 20 $ 5,000,000.00 13.75 $ 68,750.00 Flat Borough mill rate 121 7 128 $ 32,000,000.00 9•25 $ 296,000.00 Total 825 121 946 Total $ 2,710,427.50 Page 95 of 232 Discussion Of Personal Property Tax Exemption Ordinance AGENDA ITEM #2.e. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION SUBJECT: Solid Waste Contract Revisions Discussion ORIGINATOR: Aimee Williams, Borough Manager RECOMMENDATION: Discuss and authorize the Manager to add Contract No. FY2019-25 Amendment #2, Version 2, of the Residential and Commercial Solid Waste Collection and Recycling Services Contract to the next regular meeting agenda for approval. DISCUSSION: Through Resolution No. FY2024-12, the Kodiak Island Borough Assembly formed the Solid Waste Contract Committee (SWCC) to assess and address inconsistencies and ambiguities in the solid waste contract. In collaboration with Borough Staff, the SWCC, and the Borough Attorney, an amended version of the contract was drafted to rectify key issues within the existing agreement. Following the Work Session on September 12th, when the drafts were first presented to the Assembly, the Assembly postponed discussion to provide ample time for review. However, during the October 17th Regular Assembly Meeting, they indefinitely postponed further consideration of the draft, instructing Staff to return with a minimally revised version to reduce the scope of edits made and ensure the contract's continuity through its term. In response to this directive, Staff and the Borough Attorney reviewed the existing contract, as amended by Amendment #1 in March 2021, and determined it largely aligns with the Assembly's direction from October 17th. Accordingly, Staff is now presenting Amendment #2, which incorporates the following three changes: Annual Reporting Date changed from February 15 to April 30, to align with the Annual Adjustment Due Date. Shorting the number of days in which a commercial container will be removed for non- payment from 90 to 60 days. Adding Appendix A, which is a flow chart for standard services, per the contract as amended by Amendment #1. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 96 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. KODIAK ISLAND BOROUGH STAFF REPORT OCTOBER 31, 2024 ASSEMBLY WORK SESSION • October 3, 2024, Regular Meeting, Public hearing held on Contract No. FY2019-25B, Amendment #2, With Waste Connections of Alaska, Inc. DBA Alaska Waste For Residential And Commercial Solid Waste Collection And Recycling Services • October 10, 2024, Work Session, Discussion Of Contract No. FY2019-25B, Amendment #2, Residential And Commercial Solid Waste Collection And Recycling Services • October 17, 2024, Regular Meeting, Unfinished Business, Postponed Indefinitely • October 31, 2024, Work Session, Solid Waste Contract Revisions Discussion Kodiak Island Borough Page 97 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Version 2—10.25.2024 SECOND AMENDMENT TO CONTRACT NO. FY2019-25 RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES BETWEEN KODIAK ISLAND BOROUGH AND WASTE CONNECTIONS OF ALASKA, INC. dba ALASKA WASTE JULY 2019 FIRST AMENDED MARCH 2O21 SECOND AMENDMENT NOVEMBER 2024 Page 98 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Version 2—10.25.2024 This Second Amendment to Contract No. FY2019-25 ("Amendment 2") is made and entered into effective as of the day of � , 20XX ("Amendment Effective Date"), by and between WASTE CONNECTIONS OF ALASKA, INC. ("Contractor'), and KODIAK ISLAND BOROUGH (the "Borough"). Contractor and the Borough are each individually referred to herein as a "Party" and collectively as the "Parties". Capitalized terms not otherwise defined herein shall have the respective meanings ascribed to them in the Agreement (as defined below). BACKGROUND A. WHEREAS, Contractor and the Borough entered into Contract No. FY2019-25 (the "Agreement") dated July 19, 2019; and B. WHEREAS, the parties agreed and entered into First Amendment Version II on April 12, 2021. C. WHERAS, the parties agree there are additional changes that need to be made as outlined here in Second Amendment. AGREEMENT NOW, THEREFORE, in consideration of the premise and obligations as set forth in this Amendment, the receipt and adequacy of which is hereby agreed to and acknowledged, the Parties agree as follows: Article 1— Reporting Period The following change is an adjustment to do with reporting periods for the contractor. 1. Change the Annual Reporting Date. Move the Annual Reporting Date from February 1511 to April 30t1i to align with the Contractor's Annual Adjustment Due Date. a. Section 10.03(a) Reporting is restated to read as follows: "Annual Report. Contractor will submit a complete Annual Report to KIB no later than April 30 of each Contract Year, which shall address the preceding Calendar Year. At a minimum, the Annual Report shall include the following information: [... ]" Article 2 — Commercial Removal of Container for Non -Payment The following change is a reduction in time period which the Contractor is allowed to remove a commercial container for non-payment. 1. Change the Definition of Contract Service Exceptions (6) to be restated to read as follows: "(6) Any commercial or multi -family customer with a past due balance of 60 days or greater will no longer be offered a refuse container for curbside collection and will be billed the rate for the same service they were receiving, but without a container, until the balance is paid in full. Any residential customer with a past due balance of 90-days or greater will no longer be offered a roll - cart for curbside collection and will be billed the rate for the same service they were receiving, but without roll-cart(s), until the balance is paid in full. Once the customer's balance is paid in full, the customer will again be offered a dumpster or roll -cart for curbside collection." Article 2 — Attaching Appendix A: Standard Service Options Flow Chart The following flow chart is hereby attached to the contract as reference material for the public, contractor, and Borough Manager. The flow chart outlines the standard services available to customers. Contract FY2019-25 Residential and Commercial Solid Waste Collection and Recycling Services Second Amendment Page 2 of 5 Page 99 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Version 2—10.25.2024 Standard Service Options Flow Chart y d E QA e UX ?uN p-C .� OaQCaom_ w cn C .... Q A Q) d'^ ` p OE�:n ii b .T pN O��1=w C C 18 l0 Q U C Ow �L)a� IA O a To fO - C ci p p N V u O E C .c p .L+ u Y N o S `i,= C E t ono U E n d p Q C �a7 d W �' ry g 0 9 c$ p c o E LL }„yam, G� T C Q y 1.2 aU O U O O Q V C .� O O �` p p 0 cZ z? °Uc EO 0 idzF y O m CLiO # my° L C E E l0� O V Z J fn E E O lO V ° o W d d C d - y f'_ r v Q W / (n .n '� 01 I.i Z fC0 'a0-+ ate+ C1 y v �. chi t° N y •y 7 C C C7 C C C CLLJ QLU /1 w J LLI Eam 8 y C m Ap v u IE V / Q � T .d _O C X Q d ¢ W ,�y € 1O `o ' .� .0 6 ° v E CI Ol 0 w c m rnn c�Z)QZ ci�8�°gSb.6 y f° a c °� c E 0 0 5 m" y c L yr E Q 3CL U = U N N N o a c2, o m H 3 N C E CD o E v N c o 7 C Gvs _O • 07 y O l0 Q 0 9 0 CM d m Q:n N d v mmm�v�u O 2 1 W n °� d Z c� M 3 v C v ELLJ P C A O V C y y W d O /0 `1 > CrV m E (n aCD C u, a c a a`> >> o.� i m a p d to 3 imp m CDc c d �' r °° b c m ci D C td yrj 44 N C U O y s m OLO C N O a p E �, LU E 4 ° o C U 3 O Contract FY2019-25 Residential and Commercial Solid Waste Collection and Recycling Services Second Amendment Page 3 of 5 Page 100 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Version 2—10.25.2024 1. Counterparts. This Amendment may be executed in one or more facsimile or original counterparts, each of which shall be deemed an original and both of which together shall constitute one and the same instrument. 2. Ratification. All terms and provisions of the Agreement not amended hereby, either expressly or by necessary implication, shall remain in full force and effect. 3. Conflicting Provisions. In the event of any conflict between the terms of the Agreement and this Amendment, the terms of this Amendment shall prevail. 4. Authorization. Each Party executing this Amendment represents and warrants that it is duly authorized to cause this Amendment to be executed and delivered. [Signature Page Follows] Contract FY2019-25 Residential and Commercial Solid Waste Collection and Recycling Services Second Amendment Page 4 of 5 Page 101 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Version 2—10.25.2024 IN WITNESS WHEREOF, the Parties execute this Amendment as of the date first written above. Contractor: WASTE CONNECTIONS OF ALASKA, INC. By: Name: Title: Date: ATTEST: By: Name: Title: Date: The Borough: KODIAK ISLAND BOROUGH By: Name: Title: Date: ATTEST: By: Name: Title: Date: By: Name: Title: Date: Contract FY2019-25 Residential and Commercial Solid Waste Collection and Recycling Services Second Amendment Page 5 of 5 Page 102 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Contract FY2019-25 As Amended March 2021 Page 1 of 93 CONTRACT NO. FY2019-25 RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES KODIAK ISLAND BOROUGH AND WASTE CONNECTIONS OF ALASKA, INC. dba ALASKA WASTE MAY 2019 AS AMENDED MARCH 2O21 Page 103 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 2 of 93 TABLE OF CONTENTS RECITALS......................................................................................................5 SECTION 1 EXCLUSIWE CONTRACT.............................................................5 SECTION 2 REPRESENTATIONS AND WARRANTIES....................................6 2.01 Contractor's Representations and Warranties.......................................6 2.02 Integration............................................................................................ 7 SECTJON 3 TERM OF CONTRACT.................................................................7 3.01 Initial Term...........................................................................................7 3.02 Specific Provisions to Survive Term......................................................8 3.03 Contractor's Obligations Upon Expiration or Termination .......................9 SECTION 4 TRANSITION PLA.NNING.............................................................7 4.01 Transition Plan....................................................................................9 SECTION 6 GENERAL SCOPE OF CONTRACTOR DUTIES ..........................10 5.01 Collection and Transfer of Refuse ....................................................... 10 5.02 Customer Service.............................................................................. 10 5.03 Fee Collection and Financial Reporting .............................................. 10 5.04 Collection and Transfer of Recyclable Cardboard Material ..................40 SECTION 6 SPECIFIC COLLECTION DUTIES ............................................... 11 6.01 Mandatory Service............................................................................. 11 6.02 Collection from Refuse Carts.............................................................. 11 6.03 Collection from Dumpsters, Roll -Off Containers, or Compactors ........ 12 6.04 Bulky Items........................................................................................14 6.05 Emergency Services.......................................................................... 14 6.06 On -Call, Temporary Dumpster, and Rolloff Collection Service ............. 15 SECTION 7 DISPOSAL OF COLLECTED REFUSE ....................................... 16 7.01 Transportation of Collected Refused to KIB Landfill ..........................1 6 SECTION 8 FUTURE RECYCLING PROGRAM SERVICE..............................16 8.01 General.............................................................................................16 8.02 Prospective Services....................................................................... 1.6 8.03 Methods............................................................................................ 17 8.04 Equipment and Personnel.................................................................. 17 8.05 Final Disposition of Recyclable Materials ............................................ 17 8.06 Documentation.....................................................................................1 7 8.07 Records and Reporting..................................................................... 1.8 8.08 Recyclables Processing and Marketing .............................................. 1 B SECTION 9 GENERAL OBLIGATIONS AND PERFORMANCE STANDARDS 18 9.01 Procedures for Missed Collections..................................................... 18 9.02 Customer Complaints........................................................................ 18 9.03 Unpermitted Waste Screening (or Recyclables if Applicable) .............. 19 9.04 Contract Service Exceptions.............................................................. 20 9.05 Other Special Customer Services....................................................... 21 9.06 Contract Service Assets.....................................................................2.1. 9.07 Service Standards............................................................................. 23 9.08 Billing and Accounting Practices........................................................ 25 SECTION 10 RECORDKEEPING AND REPORTING.....................................25 10.01 Acknowledgement..........................................................................26 10.02 Records......................................................................................... 26 Page 104 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Contract FY2019-25 As Amended March 2021 Page 3 of 93 10.03 Reporting...................................................................................................27 10.04 Financial Records and Reports..................................................................27 SECTION 11 CONTRACTOR SERVICE FEE ANO SPECIAL SURCHARGES .......... 28 11.01 Contractor Service Fee Schedule...............................................................28 11.02 Contractor's Costs Covered by Service Fee .............................................. 31 11.03 Adjustment of Contractor Service Fee........................................................60 SECTION 12 MISCELLANEOUS PERFORMANCE OBLIGATIONS ............................37 12.01 Compliance With Applicable Laws............................................................. 65 12.02 Contractor's Personnel...............................................................................67 12.03 Communication With KIB............................................................................67 SECTION 13 INDEMNIFICATION, INSURANCE, LETTER OF CREDIT .....................39 13.01 Indemnification...........................................................................................67 13.02 Required Insurance...................................................................................68 13.03 Payment Security.......................................................................................45 13.04 Guaranty Agreement................................................................................443 13.05 Assurance of Performance.........................................................................45 SECTION 14 CHANGES IN SCOPE OF CONTRACT OBLIGATIONS ........................46 14.01 Changes to Performance Obligations...................................................... 464 14.02 Proposal Requirements..............................................................................46 SECTION 15 BREACH OF AGREEMENT, DAMAGES, AND DEFAULT .....................47 15.01 Liquidated Damages..................................................................................47 15.02 Compensatory Damages............................................................................48 15.03 Defaults.....................................................................................................49 15.04 Excused Breaches and Defaults.................................................................49 15.05 Remedies Upon Breach............................................................................ 80 15.06 Additional Compensatory Damages.......................................................... 82 15.07 Waivers......................................................................................................83 15.08 Costs........................................................................................................ 83 15.09 KIB Right To Perform.................................................................................84 SECTION 16 SUSPENSION OR TERMINATION OF CONTRACT ............................... 57 16.01 KIB's Right to Suspend or Terminate......................................................... 57 16.02 Criminal Activity......................................................................................... 58 SECTION 17 TRANSFER OF CONTRACT................................................................59 17.01 Transfer by Contractor...............................................................................59 SECTION 18 THE PARTIES....................................................................................... 61 18.01 Independent Contractor............................................................................ 61 18.02 Parties in Interest...................................................................................... 61 18.03 Binding on Successors.............................................................................. 61 18.04 Further Assurances................................................................................... 61 18.05 Actions of KIB in Its Governmental Capacity..............................................61 18.06 Contractor's Obligations Performed at Its Sole Expense ............................61 18.07 Parties' Representative..............................................................................61 18.013 Due Diligence............................................................................................90 18.09 No Use of KIB Name..................................................................................90 18.10 Subcontractors..........................................................................................90 SECTION 19 AMENDMENT........................................................................"•63 19.01 Amendments..............................................................................................63 SECTION 20 NOTICES, CONSENTS, AND APPROVALS .......................................... 64 20.01 Notices......................................................................................................64 Page 105 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 4 of 93 20.02 Writing Requirements.....................................................................64 20.03 Exercise of Options........................................................................64 SECTION 21 INTEGRATION, GOVERNING LAW, AND VENUE...............................65 21.01 Integration...................................................................................... 65 21.02 Governing Law............................................................................... 66 21.03 Severability.................................................................................... 66 21.04 New Contract................................................................................. 66 21.05 Venue............................................................................................ 67 21.06 Costs............................................................................................. 67 SECTION 22 ADDITIONAL TERMS AND CONOITIONS........................................... 67 SECTION 23 DEFINITIONS........................................................................................68 SECTION 24 EXECUTION..........................................................................................88 EXHIBIT A: REQUEST FOR PROPOSAL EXHIBIT B: LIQUIDATED DAMAGES EXHIBIT C: CONTRACTOR'S PROPOSAL DOCUMENTS Page 106 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 5 of 93 CONTRACT FOR RESIDENTIAL AND COMMERCIAL SOLID WASTE COLLECTION AND RECYCLING SERVICES This Contract for Solid Waste Collection and Recycling Services ("Agreement") is made and entered into this Nineteenth (191h) day of July, 2019 ("Effective Date") by and between the Kodiak Island Borough ("Borough" or "KIB"), a second class borough organized under and laws of the State of Alaska, and Waste Connections of Alaska, Inc. dba Alaska Waste ("Contractor"), an Alaska corporation authorized to do business in the State of Alaska, collectively referred to as the Parties. RECITALS WHEREAS, the Borough, pursuant to AS. 29.35.210(a)(4), is authorized to provide for garbage, solid waste, and septic collection and disposal on a non-areawide basis; and, WHEREAS, the Borough, pursuant to Chapter 8.25 of the Kodiak Island Borough Code, regulates the management of municipal solid waste, including its storage, collection, processing, recovery, and disposal; and, WHEREAS. the Borough does so to protect the public safety, health and welfare of the people of the Borough, to protect, preserve, arid enhance the environment within the Borough, and to provide for fiscally responsible solid waste management; and, WHEREAS, the Contractor submitted a proposal to the Borough in response to an RFP that was issued to identify parties qualified to administer the solid waste services and recycling program; and, WHEREAS, based upon the information and representations set forth in the Contractor's proposal, the Borough has determined that the Contractor is the lowest responsible bidder; and, WHEREAS, the Parties wish for Contractor to administer the Borough's solid waste and recycling program, subject to the terms and conditions set forth in this Agreement; and, NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements contained herein, and the mutual benefits conferred hereunder, the receipt and sufficiency of which are hereby acknowledged, the Borough and the Contractor agree as follows: SECTION 1: EXCLUSIVE CONTRACT 1.01 Exclusive Right and Privilege to Provide Contract Services. The KIB grants Contractor the exclusive right and privilege, together with the obligation to provide, Contract Service in the Contract Service Area conditioned on Contractor being at all times ready, willing, and able to meet each and every Performance Obligation. Page 107 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 6 of 93 SECTION 2: REPRESENTATIONS AND WARRANTIES 2.01 Contractor's Representations and Warranties. Status. Contractor is a corporation duly organized, validly existing and in good standing under the laws of the State of Alaska and is in all respects qualified to do business and perform the Contract Services within the State. b. Authority and Authorization. Contractor has full legal right, power and authority to execute and deliver this Contract and satisfy its Performance Obligations. This Contract has been duly signed and delivered by Contractor and constitutes a legal, valid and binding obligation of Contractor enforceable against Contractor in accordance with its terms. c. No Conflicts. Neither the execution nor delivery by Contractor of this Contract, the performance by Contractor of its Performance Obligations, nor the fulfillment by Contractor of the terms and conditions of this Contract: (1) Conflicts with, violates or results in breach of any Applicable Law; (2) Conflicts with, violates or results in a breach of any term or conditions of any judgment, order or decree of any Regulatory Authority or any agreement or instrument to which Contractor or any of its Affiliates is a party or by which Contractor or any of its Affiliates' properties or assets are bound, or constitutes a default thereunder; or (3) Will result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. d. No Approvals Required. No approval, authorization, license, permit, order, consent, declaration, registration or filing with any governmental or administrative authority, commission, Governing Body, agency or instrumentality is required for the valid execution and delivery of this Contract by Contractor, except those that have been duly obtained from its Board of Directors or other governing body. e. No Litigation. Contractor warrants that there is no current, pending, or, to the best of Contractor's knowledge, threatened action, suit, proceeding or investigation, either at law or in equity, before or by any court, governmental authority, commission, governing body, agency or instrumentality, by or against Contractor wherein an unfavorable decision, ruling or finding, in any single case or in the aggregate, would adversely affect the performance by Contractor of its obligations under this Contract or in connection with the transactions contemplated by this Page 108 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 7 of 93 Contract, or which in any way would adversely affect the validity or enforceability of this Contract or any other agreement or instrument entered into by Contractor in connection with the transactions contemplated by this Contract. Contractor further warrants that there is no action, suit, proceeding or investigation, either at law or in equity, before or by any court, governmental authority, commission, board, agency or 'instrumentality pending or threatened, by or against KIB by Contractor. Due Diligence. Contractor warrants that it has conducted such independent investigation, examination and research of the conditions and circumstances surrounding this Contract, including the best and proper methods of providing the Contract Services (including the types of Contract Services), labor, equipment and materials to ensure its ability to provide the Contract Services according to the terms and conditions set forth herein. Contractor agrees that it will make no claim against KIB based on any good faith estimates, statements or interpretations made by any officer, employee or agent of KIB that proves to be in any respect erroneous. g. Compliance with Applicable Laws. Contractor further represents and warrants that it has fully complied with all Applicable Laws, including without limitation any and all laws relating to conflicts of interest, in the course of procuring this Contract. h. Truth and Accuracy of Application. Contractor warrants that the information provided in the proposal it submitted in response to KIB' s Request for Proposals for this Contract, together with any addenda thereto, including all amendments, clarifications, and other communications furnished to KIB as part of that proposal, is true, accurate and complete. I. Updates to Contractor Documentation. Contractor agrees to promptly notify KIB of any change in circumstance that renders untrue any information represented to KIB as part of the competitive procurement process giving rise to the award of this Contract, and shall also do so in the event that it discovers that any representation to KIB was otherwise erroneous. 2.02 Integration. This instrument, as well as all appendices and amendments, set forth the entire agreement of the parties. There exist no other promises, terms, conditions, or obligations other than those contained herein, and this Contract shall supersede all previous communications, representations or agreements, either oral or written, between the parties hereto. SECTION 3: TERM OF CONTRACT 3.01 Initial Term. Page 109 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 8 of 93 a. Contract Commencement Date and expiration of Term. The Contract Term shall commence on July 1, 2020 (Commencement Date") and, unless extended, shall expire in 7 years on June 30, 2027 Termination Date") b. Collection Commencement Date_ The Collection Commencement Date is July 1, 2020. C. Short-term extension. On or before 30 days prior to the expiration of the Term whether original under subsection a) or extended under subsection d), KIB, in its sole discretion, may extend the Term for up to six months. d. Mutual Option to Extend Term. On or before 60 days prior to the following dates: (1) expiration of the Initial Term under subsection a), (2) the extended Term under subsection b), or (3) a portion of the maximum allowable extended Term under this subsection, with KIB and Contractor's mutual agreement, may incrementally extend the Term for up to 3 years in any combination of the following number of years (such as 1 +2, 1+1+1; 2+1). 3.02 Specific Provisions to Survive Term - The following provisions of this Contract will survive the Term: a. all acknowledgements, representations and warranties of the Parties in this Contract; b. all indemnities; C. Contractor Payment Obligations or claims therefore; d. all Contractor's Performance Obligations and KIB's rights with respect to Records, including giving KIB a copy of Records, or allowing KIB to copy, inspect and audit Records, including: • certificates of Insurance or other evidence of Insurance coverage (such as endorsements extending coverage of claims made insurance policies), and • Contract Service Asset Inventory and Contract Service Asset Documentation (for example, with respect to Refuse Carts that KIB has the right to acquire). e. all Contractor's Performance Obligations and KIB's rights with respect to Page 110 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 9 of 93 Reports; including submitting final Reports; f. providing endorsements extending coverage of claims made insurance policies, if 1 B waives the claims made requirement and allows claims made insurance policies; g. any other provision that expressly states that it survives the Termination Date (such transfer of Cart ownership to KIB); and h. any right of either Party vested and any obligation of either Parties accrued before the Termination Date. 3.03 Obligations Upon Termination or Expiration. Sale or Lease of Contract Service Assets. Upon termination or expiration of this Agreement, Contractor may within 10 days enter into good faith negotiations to pem,it KIB or its newly selected contract hauler to purchase or lease those Contract Service Assets, including Refuse Containers, used and owned by Contractor within the Service Area. As part of any such purchase or lease agreement, Contractor shall deliver any and all Contract Service Asset Documents, including, but not limited to: manufacturers warranties, maintenance agreements, financing documents, and recorded financing statements, if any. b. Contractor Removal of Refuse Containers. If the Contract Service Assets are not sold or leased to KIB upon termination of this Agreement, Contractor shall remove all its Refuse Containers from the Service Area within 90 days c. Survival of Obligations. Contractor's obligations under this Section shall survive the termination or expiration of this Agreement, or any extension thereto. SECTION 4: TRANSITION PLANNING 4.01 Transition Plan. a. Contractor's Acknowledgement. Contractor acknowledges that it is of the utmost importance to KIB that the transition from KIB' s current solid waste services provider to the Contractor proceeds smoothly, and without any significant interruption in services. To ensure the continued satisfaction of Customers, it shall, submit their transition plan along with their proposal. To be reviewed and taken into consideration when scoring is done. (1) Timely Collection at each Customer's Premise; (2) Accurate billing for Special Service Surcharges; (3) Efficient distribution of Refuse Containers; (4) That Customer preferences are taken into account with respect to any modifications to pick up days or times, the scope of services, or Page 111 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 10 of 93 program specifications;and b. Contractor Transition Plan. The Contractor shall submit a Preliminary Transition Plan for KIB' s approval at the time of the submission of their proposal. The Final Transition Plan will be submitted for KIB's approval within sixty (60) days of the Notice of Intent to Award which the Contractor shall be able to implement in a manner satisfactory to KIB at the commencement of the contract. The Transition Plan will provide details for responding to Customer complaints and inquiries. c. Compliance with Transition Plan. Contractor will fully implement its Transition Plan, and shall do so In a timely manner. Contractor will direct employees to work overtime and/or add extra shifts. as necessary, without any increase to its Contractor Service Fee to ensure compliance with the Plan. Contractor agrees that it will, on a weekly basis. submit to KIB written status reports in a form and containing such information as is satisfactory to KIB. which shall commence no later than the Friday of the week following the Contract Commencement Date. On the first KIB Business Day each week. and promptly upon KIB request thereafter. Contractor will meet with KIB to review the status of its implementation of the Transition Plan. SECTION 5: GENERAL SCOPE OF CONTRACTOR DUTIES 5.01 Collection and Transfer of Refuse. Subject to the conditions contained herein, Contractor shall, among other things: a. Provide Refuse Containers to Customers; b. Provide Residential and Commercial Collection service; c. Collect Municipal Solid Waste generated in the Service Area; d. Deliver Municipal Solid Waste to the KIB Landfill. 5.02 Customer Service. Subject Io the conditions contained herein, Contractor shall, among other things: a. Serve as the primary point of contact for Customers; b. Resolve Customer complaints in a timely manner; c. Report Customer complaints to KIB; and, d. Perform its Collection and Transfer duties in a professional and courteous manner. 5.03 Fee Collection and Financial Reporting. Subject to the conditions contained herein, Contractor shall, among other things: Page 112 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 11 of 93 a. On behalf of KIB, charge Customers a fee or fees in the amounts directed by KIB; b. Remit to KIB such portions of those fees as directed herein; c. Maintain detailed financial records regarding the billing and collection of fees; and, d. Issue Reports to KIB in the manner and at the times directed herein. 5.04 Collection and Transfer of Recyclable Cardboard Material. Subject to the conditions contained herein, Contractor shall, among other things: a. Provide Cardboard Recycling Containers to Customers; and b. Deliver Cardboard Recycling Containers to the KIB designated recycling facility for processing. SECTION 6: SPECIFIC COLLECTION DUTIES 6.01 Mandatory Service. a. Contractor acknowledges that Contractor is required to charge the owner or occupant of a Premises a Service Fee, regardless of whether that owner or occupant self -hauls Solid Waste and discards it in the Dumpster and Roll Off Container at KIB landfill or utilizes Services at Customer's Premises. b. If anyone notifies Contractor in writing that he or she wishes to personally store, collect, transport and dispose of Solid Waste generated on that person's Premises, (referred to as "self -haul"), Contractor may nevertheless charge that person a Contractor Service Fee commensurate with the weekly roll cart fee, based upon 95 gallons or less Solid Waste that the self -haul (commercial or residential) Customer discards at the Landfill or a Roll Off Container. c. Mandatory Service Notice. Within seven (7) Service Days after receiving notice (based on Contractor's drivers' observations, information and belief, or otherwise} that a formerly unoccupied Premise becomes occupied, or that the individuals occupying the Premises have changed, Contractor will give written notice to the owner or occupant of that Premises that Service is required unless Contractor has already received a request for Service at that Premise, or KIB revokes such provisions of the KIB Code that require mandatory Service. 6.02 Collection From Refuse Carts. a. Automated or Semi -Automated Collection. Contractor will Collect all Refuse Carts using an Automated or Semi -Automated manner. "Automated" means that Refuse Carts are lifted from their Set -Out Site, emptied and set Page 113 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 12 of 93 back down at their Set -Out Site by mechanical means. "Semi -Automated " means that Refuse Carts are rolled by Contractor's employees from their Set -Out Sites into position near the Collection Vehicle; lifted, emptied and set back down by mechanical means; and returned by such employees to their Set -Out Sites. b. Mandatory Collection from Refuse Carts. Beginning on the Collection Commencement Date, and on a weekly basis thereafter, Contractor shall collect all Refuse placed in Carts located at Residential, Multi -family and Commercial Premises within the City of Kodiak, or such other areas as may be designated by KIB in a Notice to Contractor, on the Regularly Scheduled Collection Day. c. Refuse Cart Options. (1) Standard Option. Unless Contractor must provide Roll Off Containers pursuant to Section 6.02, it shall provide each Premises with one 95- gallon capacity Bear -Resistant Refuse Cart for the charge listed on the Service Fee Schedule in Section 11.01, except if the owner or occupant of that Premises directs Contractor to provide a different number of Carts under following Subsection c.(2). (i) If a Premise falls within a Borough -designated "Bear Aware" area, it shall without exception be excluded from receiving a roll cart. (2) Customer Requests for Additional Refuse Carts. Contractor will provide Customers with Bear -Resistant Refuse Carts. Additional carts shall be provided upon request, with each additional cart priced at the corresponding Service Fee. d. Cart Rollout Service. (1) Scope of Service. Upon request, Contractor will provide Rollout Service to Customers, as follows: (i) Without Surcharge. Rollout service shall be provided to Senior Citizens and Disabled Customers without surcharge, if the Customer certifies that no able-bodied person resides at Customer's premise. (ii) With Surcharge. If requested, rollout service shall be provided to all other Customers, who shall be charged the surcharge set forth on the Contractor Service Fee Schedule. 6.03 Collection From Dumpsters, Roll -Off Containers, or Compactors. a. Residential, Commercial, or Multi -Family Collection. Generally beginning on the Collection Commencement Date, Contractor will provide all Multi -Family and Commercial Customers within the Service Area with either Residential Roll -Off Containers or Dumpsters, for which Customers shall be Page 114 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 13 of 93 charged in accordance with the Contractor Service Fee Schedule in Section 11.01. Residential Customers whose Premises are located within the portion of the Service Area outside the City of Kodiak shall also be provided with a Residential Roll -Off Container or Dumpster. Contractor will collect Refuse discarded therein at least weekly, on the Regularly Scheduled Collection Day(s) or on alternate or additional days as agreed to between Contractor and the Customer. b. Dumpster Options. (1) Standard Option. Contractor will provide each Commercial Premise and Multi- Family Premise (as defined in section 23) with one 2.0 cubic yard capacity dumpster to be Collected once weekly for the charge listed on the Service Fee Schedule in Section 11.01, subject to the following exceptions: (i) If a Premise falls within a Borough -designated "Bear Aware" area, it shall without exception receive a bear -resistant Dumpster. (ii) A Customer may direct Contractor to provide a Dumpster of alternate capacity, or one or more Roll -Off Containers, subject to the charges prescribed by the Contractor Service Fee Schedule.. (iii) A Commercial Customer which requires one or two 95-gallon roll carts per week to properly store and dispose of their refuse may request and receive a reduction to single or double roll carts charged at the roll cart rate. A Commercial Customer which requires more than two 95-gallon roll carts weekly to securely store and dispose of their refuse will receive service under the standard option, subject to modification only under (ii), (iv), (v), and (vi) of this section. (iv)A Commercial Customer with dumpster service may also direct Contractor to, notwithstanding any Regularly Scheduled Collection Day(s), collect refuse from the Customer's Premises on alternate or additional days as agreed to between the Contractor or Customer, and subject to the Contractor Service Fee Schedule. (v) For a Commercial Premise or Multi Family Premise, should the Contractor, in its sole discretion determine that there is insufficient room at a premise to place or safely collect one or more dumpsters for each customer using the corresponding set- out site, the Contractor will either: A. Provide one or more carts of the capacity and number that each Customer requires to safely and adequately store its discarded Refuse pending Collection; or B. Allow one or more Customers to share a Dumpster. (vi)Should the Contractor determine that the routine waste volume of a Commercial Premises or Multi Family Premise requires a larger capacity container, the Contractor may provide container(s) of sufficient size and notify the customer and the Borough of the change in container(s). Page 115 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 14 of 93 (vii) If there is a dispute as to the size container required or whether a customer's waste stream requires more than a customer requested container(s) the Borough Manager or designee will review the circumstances and make a final administrative determination. (2) Dumoster Locks. Should a Customer so request, Contractor shall promptly provide dumpster locks, which shall be subject to any surcharge set forth on the Contractor Service Fee Schedule. C. Compactors. Contractor is not obligated to provide a Compactor to any Customer. However, on request of the owner or occupant of a Commercial or Multi -family Premise, Contactor will Collect all Refuse placed inside each Compactor at the frequency requested by that Customer and for the charge listed on the Service Fee Schedule in Section 11.01. d. Roll Off Container at KIB Landfill. Beginning on the Commencement Date, Contractor will deliver a Dumpster or Roll Off Container in any capacity provided on the Service Fee Schedule in Section 11.01, as requested by KIB, to the location specified by KIB at the KIB Landfill. Contractor will replace that Dumpster or Roll -off Container with another Dumpster or Roll Off Container of any other capacity provided on the Service Fee Schedule, within two (2) Service Days of KIB' s request. Contractor will provide KIB with the Service prescribed in Section 6 .03{a) {including container repair and maintenance), as if KIB were a Customer. Beginning on the Collection Commencement Date, Contractor will Collect all Solid Waste placed therein at the frequency agreed to by KIB and the Contractor, and dispose of it at the KIB Landfill, without charge to KIB. e. Cardboard Recycling Containers. Beginning on the Commencement Date, Contractor will deliver a specially fabricated Cardboard Recycling Container in any capacity provided on the Service Fee Schedule In Section 11.01, at the designated locations specified by the KIB. Contractor will collect cardboard recyclable material discarded therein at least weekly, on the Regularly Scheduled Collection Day(s) or on alternate or additional days as agreed to between Contractor and the KIB to ensure that each Cardboard Recycling Container is promptly emptied when container is at capacity. 6.04 Bulky Items. a. Reporting Bulky Items. Contractor's employees must promptly notify Contractor of any Bulky Items that they observe discarded at a Dumpster Set- Out Site. b. On -Call Collection Service and Fees. Contractor must, within three (3) days of a Customer's request, collect Bulky Items with maximum allowable dimensions of 4 x 5 x 6 cubic feet that are discarded at a Set -Out Site. Customers shall be entitled to one such pickup each month; however, Contractor shall charge Customers the surcharge listed on the Contractor Page 116 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 15 of 93 Service Fee Schedule in Section 11.01 for each additional pickup of Bulky Items that occurs within the same calendar month. c. Diversion Program for Bulky Items. Contractor will use reasonable business efforts to divert all bulky Items that it collects. Contractor shall deliver all bulky Items that It does not divert to a facility approved by KIB. 6.05 Emergency Services. Nature of Emergency Services. Within 24 hours of notice by KIB, whether oral or written, Contractor will provide emergency services beyond the scope of the Contract Services at the times and to the extent directed by KIB, including providing vehicles, drivers and other equipment and personnel to cleanup Solid Waste and other debris consequent upon natural disasters such as earthquakes, storms, floods, riots and civil disturbances, for which Contractor will be compensated Contractor's reasonable Reimbursement Costs. To the fullest extent possible, Contractor shall seek KIB' s preapproval prior to incurring any expenses related to the provision of emergency services. b. Reporting. Contractor will cooperate with KIB, the State, and federal officials in filing information related to a regional, state or federal declared state of emergency or disaster as to which Contractor has provided services under this Chapter. c. Emergency Backup Service Plan. Contractor will submit an emergency backup service plan to KIB sixty (60) days prior to the Contract Commencement Date, which shall be subject to KIB's approval. Contractor shall implement that plan if, due to Uncontrollable Circumstances or for any reason whatsoever, Contractor fails, refuses, or is unable for a period of 48 hours to collect and/or at any time transport Solid Waste or any portion thereof to the applicable Solid Waste Management Facility, and the KIB Manager determines such failure reasonably presents a danger to the public health, safety, or welfare. 6.06 On -Call Temporary Dumpster and Roll -Off Collection Service. a. Container Delivery. Upon request, Contractor will deliver a Dumpster or Roll- Off Container, in any number and size available pursuant to the Contractor Service Fee Schedule, at the following times: (1) On the same Service Day if Contractor receives a request before 10 a.m. on that Service Day; (2) On the next Service Day if Contractor receives a request after 10 a.m. but before 4:00 p.m. on a Service Day; and, (3) Within two Service Days, if Contractor receives a request after 4:00 p.m. on a Service Day. b. Collection. Beginning on the Collection Commencement Date, Contractor will collect all Refuse and/or Construction and Demolition (C&D) Debris Page 117 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 16 of 93 deposited in a Dumpster or Roll -Off Container at the frequency requested by the Customer for the corresponding charges listed on the Contractor Service Fee Schedule in Section 11.01. c. Diversion of Construction and Demolition Debris to KIB Landfill. The Contractor shall use Reasonable Business Efforts to Divert Construction and Demolition Debris from disposal. If Contractor cannot divert Construction and Demolition Debris from disposal using Reasonable Business Efforts, it will deliver it to KIB Landfill, subject to the same obligations that Contractor has with respect to Refuse under Section 7. d. Container Pickup. Contractor will pick up such Dumpster or Roll Off Container within two (2) Service Days of a Customer's request or other time agreed to between Contractor and Customer. SECTION 7: DISPOSAL OF COLLECTED REFUSE 7.01 Transportation of Collected Refuse to KIB Landfill. a. KIB Landfill. Contractor will transport and deliver all Refuse that it Collects to the KIB Landfill. Contractor will coordinate that delivery with Holiday Collection schedules and closures for repair and maintenance. Contractor will keep Refuse that it Collects at Residential Premises, whether in Carts, Dumpsters, or Roll -Offs, separate from Refuse that it Collects at Commercial or Multi -Family Premises and will not commingle that Refuse in one Vehicle. b. Compliance and Cooperation. Contractor will ensure that its Vehicles are capable of passing in and out of the door of the baler building at the KIB Landfill. Contractor will cooperate with KIB Landfill operators, and shall comply with all rules in effect at the KIB Landfill, including, but not limited to: (1) Delivering Refuse only at the times and on those days specified by KIB; (2) Following directions to unload Collection Vehicles in designated areas; (3) Accommodating KIB Landfill operations and maintenance activities; and, (4) Complying with KIB's Unpermitted Waste exclusion programs. c. Disposal Fees. Contractor will pay all KIB Landfill Disposal fees, including the fees for Disposal of Refuse that Contractor Collects from Roll -Off Containers and Dumpsters located at the KIB landfill. SECTION 8: FUTURE RECYCLING SERVICES PROGRAM 8.01 General. Contractor acknowledges that, subject to the protocols set forth at Section 14 of this Agreement, KIB may also require Contractor to implement a Recycling collection program. In that event, KIB will request that Contractor submit a proposal to implement such Recycling collection program, which it shall review and consider prior to requesting proposals Page 118 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 17 of 93 from, or negotiating with, any other Person for the provision of these services. However, if KIB and Contractor do not reach agreement by the end of the period specified In Section 14, KIB shall be entitled to take any such other actions as may be permissible pursuant to the terms of this Agreement. 8.02 Prospective Services. If KIB selects Contractor to provide Recycling services, Contractor shall supply all labor, equipment, personnel, quarterly reports, and payment invoices In a timely manner as outlined in this Agreement. The Contractor shall agree to perform all services necessary for the processing and shipment of recyclable materials that it collects within the City of Kodiak and KIB. Contractor will collect and process cardboard, mixed paper/paperboard, newspaper, plastic, aluminum cans and office paper. Recyclable material does not include large metal items such as vehicles, parts of vehicles, appliances or home construction type of siding. Contractor will implement the processing methods and Recyclables collection as described in its Proposal and the final addendum and cover all costs associated with Contractor's collection and handling of Recyclables. 8.03 Methods. Contractor will adhere to the collection plan and processing methods based upon its Proposal and any addenda thereto. 8.04 Equipment and Personnel. The Contractor has identified, In its Proposal and any addenda thereto, the equipment to be used in the collection and processing of Recyclables. This identification shall include the minimum following Information: a. Equipment type: b. Equipment quantities; and, c. Availability of backup equipment. The Contractor has also identified in Its Proposal the number of personnel necessary to meet the requirements of this Agreement. Personnel listed shall include management, supervisory, customer service, equipment operators, collection personnel, etc. Any changes to management personnel shall be promptly communicated to KIB. 8.05 Final Disposition of Recyclable Materials. It shall be the responsibility of the Contractor to ensure that collected material is processed and recycled. To this end the Contractor shall document the final disposition of the collected material as part of its quarterly reporting requirement. 8.06 Documentation. Contractor shall maintain throughout the duration of the Agreement, and for two (2) additional years, documentation on all of the Contract Services provided. Contractor shall maintain records to substantiate all work performed and fees requested. Such records shall include, but not be limited to, daily records on the pounds of processed recyclables, shipment records, and recyclable pick up locations. KIB may request that copies or portions of this documentation be included with Contractor's monthly requests for payment. Page 119 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 18 of 93 8.07 Records and Reporting. Records. Contractor will collect and record, on a daily basis, tonnage information, including the gross, tare, and net weight of each load of Recyclables it collects, as well as the receipts from the Recyclables processing facilities, in such a manner that Contractor and KIB may review the amount of Recyclables collected and delivered by Contractor on any given day. b. Reports. Contractor will include a summary of the records for tonnage, and any additional information requested by KIB in its Quarterly Report, as described in the KIB Residential and Commercial Solid Waste Collection and Recycling Services RFP and Contractor's Proposal. c. Inventory. Contractor will submit an updated inventory of Service Assets to KIB on July 1 of each year during the Contract Term, which shall include the following: (1) ) A general description of its maintenance yards, operations facilities, drop off locations, Contractor Office, and any other administrative and customer service offices; and, (2j A list of Vehicles described by type, including manufacture and model number for cab, chassis and body; descriptive notation (i.e. front-end loader, compactor, etc.); number; OMV license number; the age of the chassis and body; type of body (i.e., open -top, closed, etc.); type of fuel used; the date of acquisition: the maintenance and rebuild status; and, lease or installment purchase information. 8.08 Recyclables Processing and Marketing. Contractor may change its selection of Recyclables Processing Facility and notify KIB within 30 days of doing so. If the Recyclables Processing Facility is wholly or partially inoperable for any reason, including uncontrollable circumstances, Contractor will make other arrangements to process Recyclables or to transport the Recyclables to the Recyclables Processing Facility without increase of the Contractor compensation despite any consequent additional costs to Contractor. SECTION 9: GENERAL OBLIGATIONS AND PERFORMANCE STANDARDS 9.01 Procedures for Missed Collections. a. Corrective Action Required. Absent Contract Service Exceptions, on the next Contract Service Day following telephonic or other notice to Contractor, Contractor will Collect without charge any container that Contractor should have Collected, delivered, exchanged, or repaired but did not. If Contractor fails to do so, KIB may provide the Contract Service itself or through a third party and Contractor will reimburse KIB' s Reimbursement Costs thereof. 9.02 Customer Complaints. Page 120 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 19 of 93 a. Response. Contractor will respond to all Customer inquiries and complaints (including any inquiry or complaint left with the telephone answering service) within 24 hours following notice to Contractor, and handle all complaints consistent with the requirements of the Customer Complaint Protocol set forth in this Section. b. Customer Complaint Protocol. Contractor will maintain, update as necessary, and follow the Customer Complaint Protocol. Upon commencement of this Agreement and in advance of all updates, Contractor will provide KIB with a copy of the Customer Complaint Protocol for its approval, which shall not be unreasonably withheld. c. Referral to KIB. Contractor will not refer or forward any Customer to KIB for resolution of complaints or answers to inquiries unless Contractor has made all reasonable efforts to resolve the matter, has failed to reach resolution, and the Customer insists. In such event, Contractor shall refer the Customer to the individual specified as the KIB Representative. d. Employee Training. Contractor will train each of its Customer service employees to follow the Customer Complaint Protocol upon starting employment, and periodically thereafter. e. Record keeping and KIB Access to Records. Contractor will maintain a written record of every inquiry and complaint that it receives related to its provision of the Contract Services, including information required by KIB, and provide KIB with a copy of any such inquiries and complaints that occurred in a month by the 15th day of the subsequent month. Contractor will allow KIB access to complaint records at Contractor's Office during Contractor Office Hours. Contractor will provide copies of any Customer complaints and the resolution of those complaints, and other related Records, to KIB within two hours of KIB's request. f. Certain Customer complaints may be directly related to, or require direct input from, the KIB, and Contractor should not be penalized or incur costs for such matters. KIB's invoice for KIB's Reimbursement Costs shall indicate the following (1) the name and address of the Customer; (2) nature of complaint or inquiry; (3) amount of time spent by KIB employee or representative; (4) hourly fees for KIB employees or representatives; and, (5) cost of materials or other disbursements, including phone and postage costs, required to resolve the complaint or answer the question. 9.03 Unpermitted Waste Screening (or Recyclables if Applicable). Page 121 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. 9.04 Contract FY2019-25 As Amended March 2021 Page 20 of 93 a. Protocol. Contractor will develop and implement an Unpermitted Waste (or recyclables if applicable) Screening Protocol in compliance with Applicable Law, which shall be submitted to KIB 60 days prior to the Commencement Date. Any amendments to Contractor's Unpermitted Waste Screening Protocol shall be subject to approval by KIB prior to implementation. b. Inadvertent Delivery of Unpermitted Waste to KIB Landfill. If Contractor inadvertently delivers Unpermitted Waste (or recyclables if applicable) to a Solid Waste Management Facility, Contractor will use its best efforts to identify the Customer that discarded the Unpermitted Waste (or recyclables if applicable) and cooperate with the Solid Waste Management Facility in any related investigations. Contractor will contact any identified Customer and provide that Customer with information on safe disposal of Unpermitted Waste (or recyclables if applicable). Contract Service Exceptions. a. Collection Exception. Contractor shall not be obligated to Collect any Solid Waste in the event of any Contract Service Exception, as defined in Section 23 of this Agreement. b. Notice of Non -Collection. If Contractor does not Collect any Solid Waste (or recyclables if applicable) due to a Contract Service Exception, Contractor must complete and leave a Non- Collection Notice securely attached to a container at or near the Set -Out Site; however, in the event that unsafe conditions do not permit Contractor to do so, it will instead use best efforts to immediately notify the Customer of the unsafe condition, including leaving a Non Collection Notice on the door of the Premise, if safe to do so, or telephoning the Customer. (1) A Non -Collection Notice with respect to Solid Waste {or recyclables if applicable) that is not properly placed inside containers must contain the following information: (i) A reminder that the Customer must place Solid Waste {or recyclables if applicable), except for Bulky Items, in a closed container; (ii) A notice that Contractor is authorized to charge the Customer the surcharge listed on the Service Fee Schedule in Section 11.01 each time the Customer sets out a container that is filled above the container rim such that it will not fully close; (iii) A notice that Contractor is authorized to charge the Customer the surcharge listed on the Service Fee Schedule each time the Customer sets out a container containing household waste that has not been placed within a bag; and, (iv) Instructions on how the Customer can acquire additional Refuse Page 122 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 21 of 93 (or recycling if applicable) Containers from Contractor, including any additional surcharges, or request on -call Collection of Bulky Items. (2) A Non -Collection Notice with respect to Unpermitted Waste (or recyclables if applicable), such as hazardous waste, (items not able to be recycled within the program if applicable), or unsafe materials, must describe where Customer can dispose of the Unpermitted Waste (or recyclables if applicable) or those materials, such as at the KIB Landfill or some other location as designated by KIB. (3) Promptly upon KIB request, Contractor will inform KIB of each Customer to which Contractor gave a Non -Collection Notice. 9.05 Other Special Customer Services. Upon Customer request, Contractor may provide special services in addition to any prescribed Contract Services following approval by KIB based on the following information: a. A description of services, including their proposed scope; and, b. Any additional surcharge to be charged for such service. 9.06 Contract Service Assets. a. Contractor Operations and Maintenance Facilities. (1) Location. Prior to the Contract Commencement Date, Contractor will secure possession and use of such operations and maintenance facilities, including a local Contractor Office, which shall be located on publicly maintained roads within the Borough. Contractor's Office shall be located in the KIB or City of Kodiak at the address provided in Contractor Documentation. If Contractor sites its operations and maintenance facilities in the KIB or City of Kodiak, it will do so in accordance with applicable laws, including zoning laws, with ample ingress and egress for vehicles. Contractor will maintain its facility in a neat, clean and presentable manner, including regular sweeping of related grounds for litter. (2) KIB Access. KIB and its designees shall be permitted to enter Contractor's operations and maintenance facilities or Contractor Office during Contractor Office Hours upon two (2) hours prior notice, and shall be permitted to investigate, observe, inspect and review Contractor's operations and Contract Service Assets. Contractor will make available a management representative or other authorized person to escort each KIB representative through facilities. This right does not limit KIB' s right to inspect Contractor's Vehicles. b. Refuse Containers. (1) Refuse Carts and Dumosters. Contractor will maintain at all times a sufficient number of containers to execute its obligations under this Agreement. All containers shall be on hand and ready for service no later Page 123 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 22 of 93 than the date provided in Contractor Transition Plan, and shall ensure that all Carts and Dumpsters conform with the specifications described in Contractor Documentation, as approved by KIB, Including Bear Carts. In addition, Contractor shall label carts with use instructions approved by the KIB for any new cart user. Basic operating instructions will be hot stamped onto carts. Contractor provides no express warranty of duration for the roll carts, and Contractor's only obligation with regards thereto shall be to provide and maintain such roll carts in accordance with the contract. (2) Roll -Off Containers. Contractor will provide Roll -Off Containers no later than the date provided in the Contractor Transition Plan. Contractor may provide Roll -Off Containers that are not new if, in the sole judgment of the KIB Representative, they are in good repair and appearance. (3) Replacement Containers. Contractor will provide additional and replacement containers (other than Compactors) as necessary to ensure that Customer always has a container. (4) Inventory. Contractor will prepare a preliminary inventory of Refuse Carts and Dumpsters that Contractor will acquire or supply as required by the Transition Plan as Contractor Documentation. In its next Monthly Report following delivery of any Cart as required by the Transition Plan, Contractor will complete and finalize the inventory. In each Annual Report following completion of the Transition Plan, or within ten ( 10) business days upon request by KIB, Contractor will update the inventory to reflect acquisition or replacement of Refuse Carts and Dumpsters, accompanied by a representation and warranty signed by Contractor that all Refuse Carts and Dumpsters meet specifications. (5) Changes in Service. Repair and Replacement. Contractor will exchange, remove and/or deliver containers at the time directed by KIB, and compensated by surcharges, if any, listed on the Contractor Service Fee Table, including for the following: (i) Changes in Service; (ii) Repair of Damaged Containers; and, (iii) Replacement of damaged or stolen Containers. (6) Locks. Within one week of Customer direction, Contractor will provide locks on a Dumpster for the surcharges listed on the Contractor Service Fee Schedule. (7) Reguired Labeling for Roll Carts. Contractor will label Roll Carts with message and use instructions approved by the KIB for any new Cart user. Basic operating instructions will be hot stamped onto carts. Contractor provides no express warranty of duration for the roll carts, and Contractor's only obligation with regards thereto shall be to provide and maintain such roll carts in accordance with the contract. C. Use and Possession of Contract Service Assets. Contractor will either own each Contract Service Asset or ensure that any lease, financing Page 124 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 23 of 93 documentation, rents or purchases by installment or conditional sale agreement with respect to each Contract Service Asset allows KIB 's acquisition or purchase of Contract Service Assets, pursuant to Section 3.03 of this Agreement. Contactor will provide a copy of the Contract Service Asset Document upon KIB' s request. Any Contract Service Asset Document shall: (1) Permit the Guarantor to assume Contractor's obligations and to continue use of Contract Service Assets in performing Contract Services; and, (2) Permit KIB or its designee to assume Contractor's obligations and to continue use of Contract Service Assets in performing Contract Services. 9.07 Service Standards. Contractor will provide Contract Services in accordance with the following provisions: a. Litter, Spills and Leaks. (1) Litter. Contractor will ensure that each collection Vehicle carries a broom and shovel at all times so as to ensure its ability to perform its obligations with respect to material spills and liquid leaks, as provided in this section. (2) Material Spills. Contractor will only transport collected waste and recyclables in covered vehicles. Contractor will prevent materials from escaping, dropping, spilling, blowing or scattering from Vehicles during collection and transportation. Contractor will immediately remove any materials that are dropped, blown, spilled, scattered, or tracked onto any alley, street or public or private place, and dispose of such materials consistent with the requirements set forth in this Agreement. (3) Liauid Leaks. During collection and transportation, Contractor will also prevent oil, hydraulic fluid, paint or other liquid from leaking out of Vehicles. Contractor will ensure that each collection vehicle carries petroleum absorbent materials. Contractor will immediately cover leaked fluids with absorptive materials, remove those materials from the ground and apply a cleaning agent to cleanse the soiled spot. Contractor will assure that no hydraulic fluid or other liquid leaks from any Vehicle onto the pavement. If a leak does occur, Contractor will immediately clean it up. b. Customer Privacy. Contractor will strictly observe and take such actions in its provision of Contract Services as are reasonably necessary to preserve its Customers' privacy rights. Contractor will not reveal information identifying individual customers or the composition or contents of a Customer's waste stream to any person other than KIB, unless otherwise directed by means of a valid court order, unless required to do so by some applicable legal duty, or upon the valid Page 125 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 24 of 93 authorization of the Customer. Further, Contractor will use reasonable business efforts to keep that information confidential among its own staff, consultants, representatives, agents, and any other persons acting on Contractor's behalf. This provision will not be construed to preclude Contractor from preparing, participating in, or assisting in the preparation of, waste characterization studies or waste stream analyses that may be required by law. In addition, Contractor will not market, sell, convey, or donate to any person any list with the name or address of Customers. The rights accorded customers pursuant to this section are in addition to any other privacy right accorded Customers pursuant to applicable law. Contractor will use reasonable business efforts to keep information with respect to Customers and customer service information, including, but not limited to, accounts serviced, containers, special services, recyclables inventory, sales of recyclables and contaminants, confidential among staff and its consultants, if any, as permitted by applicable law. c. Vehicles and Drivers. (1) Leak -Proof Vehicles. Vehicles used in collection or transportation of recyclables must have watertight beds of metal or impervious material that can be cleaned. (2) Vehicle Identification. Contractor will ensure that its name and telephone number are clearly shown on each Vehicle, so as to indicate that it is owned and operated by Contractor. d. Pavement and Utilities. Contractor is responsible for damage to pavement and driving surfaces if collection sites are located on public or private property, other than ordinary wear and tear, if the damage is the result of vehicles exceeding the maximum weight limits allowed by applicable Jaw or Contractor's negligent operation of vehicles. Customer or KIB may direct Contractor to promptly repair or replace damaged driving surfaces or utilities or repair and replace them itself or through a third party, to satisfaction of customer or KIB, as the case may be. Contractor will reimburse customer for his or her costs of repair or replacement and KIB or City of Kodiak the reimbursement costs of repair or replacement. Contractor is responsible for damage to public and private utilities, whether located on public streets or property or private property, if damage is the result of the inattention, carelessness or negligence of Contractor. e. Damage to Property or Personal Injury. Contractor shall not intentionally or negligently cause damage to property or personal injury in conjunction with the provision of Contract Services. Contractor agrees to repair or replace any property that sustains damage as a result of Contractor's negligence during the course of its performance of the Contract Services, whether the property is public or private, to the satisfaction of the owner, and will reimburse to the satisfaction of an injured individual, the cost of any personal injury caused by the negligent or willful acts or omissions of Contractor. Notwithstanding any rights KIB may have in such instances for breach of contract and to Indemnification by Contractor, Page 126 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 25 of 93 any and all disputes between Contractor and any other Person regarding damage to private property or any other injury arising out of Contractor's negligence or willful misconduct are civil matters between the Contractor and that Person. 9.08 Billing and Accounting Practices. a. Customer Billing and Fee Collection. (1) Service Fees and Surcharges. Contractor will provide billing and bill collection services at the time and in a manner satisfactory to KIB, consistent with the Contractor Service Fee Schedule, Senior Discount, Adjusted Tonnage Amount, and any other fees directed by KIB. (2) KIB Fees. (i) Amount. On behalf of KIB, Contractor will charge Customers a fee or fees in the amount directed by KIB. Contractor will not separately itemize that fee or fees on invoices to Customers or any other correspondence with Customers, unless authorized by KIB. (ii) Recording Fees. Upon receipt of any Customer's payment of fees for Contract Service, Contractor will simultaneously record receipt of KIB' s fees in separate accounts within Contractor's detailed general ledger. Those fees belong to KIB and not to Contractor. (iii) Remitting Fees to KIB. Contractor will remit to KIB amounts equal to KIB's fees at the time directed by KIB. Contractor may retain the remaining amounts received from Customers as compensation for fully and timely satisfying Contractor 's obligations under this Agreement. b. Customer Service Subscription. (1) Form and Content. Before commencing Contract Service for a new Customer, or changing Contract Service levels or frequency for an existing Customer, Contractor will provide the Customer with a written Subscription Summary. Contractor may include a waiver of damage liability and/or Customer indemnity in connection with Collection on a Customer's private driveway or pavement in form and content satisfactory to KIB. (2) Service Reauests. Contractor will accept Customer's requests for commencement of or changes in regular or special Contract Service by phone, mail, fax or E-mail. (3) Copies. Contractor will provide KIB with a copy of any Subscription Summary promptly upon request. SECTION 10: RECORDKEEPING AND REPORTING 10.01 Acknowledgement. Contractor understands and acknowledges that KIB shall Page 127 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 26 of 93 have a right to review certain Contractor's Records, and to receive Reports, for various reasons including: a. The enforcement of Customers' rights; b. The evaluation of Contractor's performance of its duties pursuant to this Contract; c. To preserve KIB's right to performance of Contractor's Performance Obligations, or to ensure that a third Person or Subcontractor performs its duties pursuant to this Contract; and, d. To confirm and/or determine the amount of any Contractor Payment Obligation 10.02 Records. a. Maintenance. Contractor will keep accurate and complete Records. b. Preservation and Retention. Unless otherwise directed by KIB, specified in this Contract, or mandated by Applicable Law, Contractor will preserve and retain all Records related to Its Performance Obligations for the full Contract Term, including any extensions, and for at least two (2) years following the Termination Date. c. KIB Right to Inspection and Audit of Contractor Records. (1) Location. (i) Contractor acknowledges the KIB's right of inspection, but such inspection shall be of the KI B's own actions and efforts. (ii) Inspection or Audit at Contractor's Office. Upon at least 7 days' prior written request, Contractor will make the Records available to KIB or its designees for inspection, review or audit at Contractor Office during Contractor Office Hours. (2) Scope of KIB's Right to Inspect or Audit. KIB shall have a right to inspect any of Contractor's Records related to Contractor's execution of its Performance Obligations at any time with reasonable notice, and to complete an audit of such Records once per Contract Year. KIB's right to inspect or audit include, but are not limited to, Records pertaining to: (i) Customer Special Service Surcharges that Contractor charged to and collected from Customers; (ii) Contract Fees; (iii) Tonnage of Solid Waste Collected, Processed, Diverted or Disposed; Page 128 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 27 of 93 (iv) Customer complaints; and, (v) Other Records necessary to confirm Contractor's compliance with its Performance Obligations. 10.03 Reporting. a. Annual Report. Contractor will submit a complete Annual Report to KIB no later than February 15 of each Contract Year, which shall address the preceding Calendar Year. At a minimum, the Annual Report shall include the following information: (1) Number of personnel employed by Contractor during reporting period, and a description of how many personnel are assigned to specific functions (e.g., drivers, mechanics, administration); (2) Number of Vehicles by type (3) Number of Containers in service, identified by size of container; (4) Location of residential Roll -Off Containers; (5) Disposal load count, weight, and cost for C&D, Commercial MSW, Residential MSW, metal, trash; (6) Annual summary of quarterly Recycling reports; and, (7) Contractor Recommendations. b. Monthly Meeting. Contractor shall participate in a monthly meeting with KIB at a time and location of KIB's choosing. 10.04 Financial Records and Reports. a. Maintenance of Records. (1) Content. Contractor will maintain in Contractor's Office accurate and complete financial Records of the following: Customer receipts; (ii) Payments to KIB (including Contractor Payment Obligations, such as any Contract Fee); and, (iii) Costs and expenses associated with satisfying Performance Obligations, whether by Contractor, its Subcontractor, or another Affiliate. Contractor may maintain financial Records associated with Goods or Services provided by an Affiliate in the office of the Affiliate but will provide KIB with a copy of those Records within ten (10) days of KIB request. (iv) Form. Contractor will maintain its financial Records on an accrual Page 129 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 28 of 93 basis and in accordance with Generally Accepted Accounting Principles. Such Records shall set forth financial information regarding Contractor's operations under this Contract separately from any other operations under other contracts or in other locations, as if Contractor were an independent entity providing service only to KIB. SECTION 11: CONTRACTOR SERVICE FEE AND SPECIAL SURCHARGES 11.01 Contract Service Fee Schedule. Contractor Service Fees adopted by KIB as of the Contract Commencement Date are appended for convenience of the Parties to this Agreement. KIB may amend these Fees pursuant to Applicable law, and consistent with this Agreement. Amended Fees will automatically be deemed to apply to this Contract without any further action. Contractor is deemed to have knowledge of Applicable Law, including KIB resolutions and ordinances. However, for convenience of administering this Contract, the Parties may from time to time amend this Section by attaching the most recent dated current Contractor Service Fee resolution or ordinance to this Section. In addition, if a Customer Requests Service of a capacity and/or frequency not provided in the Contractor Service Fees adopted by KIB, Contractor may charge an appropriate Fee for that service following KIB approval and Customer agreement. a. Amounts Paid by Customers for Subscribed Service. Contractor may charge Contractor Service Fees to Customers as compensation for providing Contract Services in compliance with all Performance Obligations. The Contractor Service Fee will not change except under Section 11.03. The Tonnage Adjustment Amount will be added to or subtracted from the Contractor Service Fee under Section 11.03(b). b. Amounts Paid by KIB for Senior Discount On each July 1 (or other day designated by KIB but no less frequently than annually) KIB will pay Contractor the aggregate amount of Senior Discounts that Contractor gave Customers during the period beginning April 1 of the prior year and ending March 31 of that year (or period commensurate with another payment date designated by KIB). c. Residential Roll -Off Clean -Up Costs shall be compensated by a one-time charge of $4.93 to each customer utilizing a roll cart and self- haul customer which will appear on their April 2021 invoice, and on the January invoice for subsequent contract years. This fee will be adjusted annually on January 1, based on the actual cost determined based on the actual cost of the twelve-month period from November 1st — October 31st preceding the January 1 charge. Actual cost will be determined based upon the costs of picking up any litter and trash around residential roll off containers, not including bulky items which are too large to fit in a trash bag or any hazardous materials, for a distance of 20 feet, to be charged in 1-minute increments of time, for a fee of Page 130 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 29 of 93 $1.00. At the end of each month, Alaska Waste will provide KIB with copies of route sheets to document actual time spent, along with a summary of those sheets. Contractor Service Fee For Cart Service Container Monthly Service Fee Senior Discount 95-gallon Bear -Resistant Roll Cart $49.25 $42.25 (-$7.00) Each additional Roll Cart $49.25 $42.25 (-$7.00) Residential Roll -Off or Roll Off Rate Per Size Roll Off Rate Per Size Additional Set -Out Fee No Charge No Charge Contractor Service Fee Surcharges for Services SHALL NOT EXCEED Activity Contractor Service Fee (per occurrence On call Collection of Bulky Waste $20.00 per call (not item) plus Direct Cost of Disposal Distance Charge $3.50 per mile beyond United States Coast Guard base Rollout Service for Non -Eligible $7.36 Customers - Initial 30 feet or fraction Rollout Service for Non -Eligible $6.13 Customers - Each additional 30 feet Beginning 7 months after Collection $25.00 plus Direct Cost of Cart Commencement Date, replacement of Cart in excess of once per calendar year Bear lock for Customers in portion of Contractor to provide all bear resistant Contract Service Area not required roll carts - No initial Customer Charge to have bear locks Lock on dumpster $25.00 to install, no charge thereafter Collection of residential material $6.87 that does not fit in roll -cart Dumpster Clean-up Costs $5.00 Page 131 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 30 of 93 Contractor Monthly Service Fee for Dumpsters (Effective 2019 - proposal rates) Dumpster Number of Dumpsters (Scheduled Tips Per Week) 4 1 Iq 3 2 4 3 4 5 6 Extra Pick- Size* U 2 cubic $156.07 $312.15 $468.24 $624.28 $789-35 $936.44 $1248.59 $1560.74 $1872.88 $82.90 yards 2.6 cubic $208.47 $416.95 $625.41 $833.88 $1042.35 $1250.84 $1667.78 $2084.73 $2501.67 $110.74 yards 3 cubic $243 41 $486.81 $730.23 $973.64 $121 .05 $1460.43 $1947.25 $2434.06 $2920.87 $129.29 yards 3.6 cubic $287.96 $575.91 $863.88 $1151.84 $1439.80 $1727.74 $2303.65 $2879.57 $3455.48 $152.96 yards 4 cubic $317.66 $635.31 $952.98 $1207.64 $1588.30 $1905.94 $2541.26 $3176.57 $3881.89 $168.73 yards 5 cubic $372.43 $744.87 $1 17.29 $1489.72 $1862.15 $2234.60 $2979.47 $3724.34 $4469.20 $197.83 yards 5.5 cubic $399-.82 $799.64 $4199.46 $1599.28 $19O9.100 $2398.98 $3198.58 $3998.22 $4797.86 $212.38 yards 6 cubic $427.21 $854.42 $4281.63 $1708.84 $2136.05 $2563.26 $3417.68 $4272.10 $5126.52 $226.92 yards 8 cubic $544.36 $1088.73 $4633.08 $2177.44 $2g244-89 $3266.18 $4354.90 $5443.63 $6532.36 $289.15 yards 1 *Contractor Service Fee for multiple Dumpsters is equal to the above scheduled amounts multiplied by the number of Dumpsters Contractor Monthly Service Fee for Dumpsters (Effective July 1, 2020 - Adjustments permitted under section 11.03) Dumpster Size* Number of Dumpsters (Scheduled Tips Per Week) 1 2 3 4 5 6 Extra Pick -Up 2 cubic yards $313.42 $626.85 $940.27 $1253.70 $1567.12 $1880.53 $83.24 2.6 cubic yards $418.65 $837.30 $1255.96 $1674.61 $2093.26 $2511.89 $111.19 3 cubic yards $488.80 $977.59 $1466.39 $1955.19 $2443.99 $2932.79 $129.82 3.6 cubic yards $578.26 $1156.52 $1734.78 $2313.04 $2891.30 $3469.58 $153.58 4 cubic yards $637.91 $1275.81 $1913.71 $2551.61 $3189.52 $3827.45 $169.42 5 cubic yards $747.91 $1495.82 $2243.73 $2991.64 $3739.55 $4487.45 $198.64 5.5 cubic yards $802.91 $1605.81 $2408.71 $3211.62 $4014.52 $4817.45 $213.24 6 cubic yards $857.91 $1715.82 $2573.72 $3431.63 $4289.54 $5147.45 $227.85 8 cubic yards $1093.17 $2186.35 $3279.52 $4372.70 $5465.87 $6559.02 $290.33 *Contractor Service Fee for Dumpsters multiple Dumpsters is equal to the above scheduled amounts multiplied by the number of Page 132 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 31 of 93 Contractor Service Fee Surcharges for Dum sters Service Description Agreement Section Amount Change in size and number of Section 6.02 $0.00 per exchange Dumpster more frequently per Dumpster than once per Contract Year Locks on Dumpster Section 6.02 $25.00 one-time fee Contractor Service Fee Surcharges for Roll -Off Service Effective July 1, 2020 — adjustments permitted under section 11.03 10-20 cubic 30-40 cubic 10-20 cubic 30-40 cubic yard yards yards yard Compactor Compactor $160.63 per $213.61 $160.63 per haul plus $213.61 per haul plus haul plus disposal fee disposal fee plus $21.25 disposal fee plus disposal fee plus disposal disconnect fee (if $21.25 disconnect fee fee I applicable) if applicable) Contractor Monthly Service Fee for Cardboard Recycling Service 10 cubic yards 20 cubic yards 30 cubic yards 40 cubic yards $160.63 fee per pull $160.63 fee per pull $213.61 fee per pull $213.61 fee per pull 11.02 Contractor's Cost Covered By Service Fee. a. The Contractor Service Fee includes all Contractor's direct costs, indirect costs, as well as any profit or return on investment for providing Contract Services, including the following: (1) Labor, including wages and fringe benefits, drivers, Customer service personnel, supervisors, and administrators; (2) Acquisition, repair and maintenance of Contract Service Assets, Including buildings grounds, and Vehicles; (3) Tools and supplies; Page 133 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 32 of 93 (4) Fuel and utilities; (5) Insurance premiums and fees for the Letter of Credit or any further assurance of performance; (6) Taxes; (7) Securing and maintaining Permits and complying with Applicable Law; (8) Fines and penalties for violation of Permits or Applicable Law; (9) Handling Unpermitted Waste discovered in Solid Waste, including disposal thereof as required by Applicable Law; (10) Negligence or misconduct; (11) Fees imposed by Regulatory Agencies, including any Contract Fee; (12) Fees charged by Solid Waste Management Facilities, such as tipping fees a KIB Landfill; and (13) Any other costs associated with the provision of Contract Services not explicitly compensated by surcharge to Customer or charge to KIB. b. Contractor Service Fee is not adjusted for changes in these costs, except under Section 11.03. Reference in this Contract to providing Contract Services "without surcharge" or similar language does not infer that absence of those words, "without surcharge", elsewhere in this Contract, means that Contractor is entitled to either of the following: (1) compensation in addition to the Contractor Service Fee listed on the Contractor Service Fee Schedule; or, (2) reimbursement of Direct Costs or Contractor's Reimbursement Costs. 11.03 Adjustment of Contractor Service Fee. a. Adjustment events and timing. The Contractor Service Fee will be upon direction of the KIB, in its sole discretion. b. Annual Adjustment On July 1, 2020, and each following July 1, the Contractor Service Fee will be adjusted so as to make it equal to the Contractor Service Fee that is in effect during the prior Contract Year (or portion of that Contract Year), plus or minus the Weighted Adjustment Percentage times that Contractor Service Fee. Between April 1 and April 30 of each Contract Year, Contractor will prepare a statement setting forth Contractor's detailed calculation of Contractor's requested annual adjustment in Contractor Service Fee in the form of the following examples or other format prescribed by KIB (see, for example, subsection h). The calculation of the disposal component shall be made based upon the estimated change in the disposal cost proposed as provided Page 134 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 33 of 93 by the Borough Manager or designee. Contractor's statement is for convenience of KIB but is not binding on KIB. KIB may make corrections or adjustments to that statement. After final Assembly approval of any change in disposal rates the disposal component adjustment shall be modified accordingly. The method used to calculate the annual service fee adjustment is set forth in the following subsection c. c. Calculation of Annual Service Fee Adjustment. The annual adjustment will be calculated for five Collection Rate Cost Components and Recycling as follows: (1) Collection & Administrative Cost Component: Annual Changes in the CPI. The operational component identified by the Contractor for each level of service will be adjusted by 75% of the CPI percent change from second half of one year to the next (i.e., from the second half of year n- 1 to the second half of year n, with n being the most current year available), but no greater than 5%, as confirmed by KIB. "CPI" means the second half consumer price index (CPI-U) for Anchorage, Base Period 1982-84=100, Series ID: CUUSA427SAO, not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statistics at www.bls.gov. (2) Fuel Cost Component: Annual Changes in the PPI. The fuel component identified by the Contractor for each level of service will be adjusted by 75% of the PPI percent change from February to February (i.e. from February of year n-1 to February of yearn with n being the current year), but no greater than 5%, as confirmed by KIB. "PPI " means the annual Producer Price Index for No. 2 diesel fuel, Base Period 1982=100, Series ID: WPU057303, not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statisticsatwww.bls.gov. (3) Fixed Cost Component: No Change Over the Initial Contract. The fixed costs identified by the Contractor for each level of service will not be adjusted and remain constant over the term of the initial contract. These costs include, but are not limited to vehicle depreciation, leases, cart and container rent (as necessary to maintain containers provided to Contractor at the start of this contract, and for any new containers purchased by the Contractor). (4) Disposal Cost Component: Change in Disposal Fee and Tonnage Per Customer. The disposal cost identified by the Contractor for each level of service will be adjusted by 100% of the change, if any, in the tonnage rate charged Contractor at KIB Landfill (compared to the rate in effect when the RFP was issued in October 2018), and for the change, if any, in the ratio between tons disposed and the number of customers served (compared to the ratio as calculated in October 2018). (5) Profit: No Change Over the Initial Contract. The percentage of profit (operating margin) identified by the Contractor for each level of service will not be adjusted and remain constant over the term of the Page 135 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 34 of 93 initial contract. Profit is calculated as a percentage of the total Collection rate. (6) Recycling: Annual Chances in the CPI. The Contractor Service Fee for Recycling will be adjusted by 75% of the CPI percent change, if any, from second half of one year to the next (i.e., from the second half of year n-1 to the second half of year n, with n being the most current year available), in the CPI during the period commencing April 1 of the previous year and ending March 31 of the current year, but no greater than 5%, as confirmed by KIB. d. Summary of Service Fee Adjustments. The following table summarizes the Contract Service Fee adjustments for each Collection Rate Cost Component: Rate Cost Component Adjustment 1) Collection and Administrative Costs CPI 2) Fuel PPI 3) Fixed Cost Fixed 4) Disposal Cost Tonnage rate and tons per customer 5) Profit % of Rate Total Collection Rate Sum of Above e. Adjustment for Changes in Operations. As soon as possible following agreement of the Parties under Section 14, the Contractor Service Fee will be adjusted for a change in Contractor's Direct Costs of providing Contract Services due to changes in Performance Obligations. To the extent permitted by Applicable Law, an adjustment will reflect Contractor's costs from the date incurred. The Contractor Service Fee will not otherwise be adjusted (for example, no adjustment will occur for any changes in the price of fuel). f. Rounding. (1) Calculations. Interim calculations shall be rounded to the nearest hundredth Le., 0.499 and 0.510 shall be rounded to 0.50, excepting percentage changes used in calculations, which shall be rounded to the nearest hundredth percent i.e., 0.50% (2) Dollars. The final adjustment in Contractor Service Fee shall be rounded to the nearest penny. g. No Adjustment if Any Breach or Default Remains Uncured. The Contactor Service Fee will not be adjusted upwards if Contractor has Breached this Agreement or Defaulted on any Performance Obligation, and such Breach or Default remains uncured: h. Example Calculations of Annual Adjustments in Contractor Service Fee. The following is an example of how annual adjustments to the Contractor Page 136 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 35 of 93 Service Fee will be calculated. The escalation, tonnage, and dollar amounts shown are examples only. (1) Annual adjustment of Collection and Administration Cost Component Due to Chanae in CPI. Calculation of% 2nd half, current year- 1 223.83 change in CPI 2nd half, current year - 2 220.62 Percent Change 1.45% (not more than 5 /° Portion of% 75% 1.09% change (2) Annual Adjustment of Fuel Cost Component Due to Change in PPI. Calculation of February, current year 120.5 change in PPI February, current year - 122.3 Percent Change -1°.47% {not more than 5 /° ) Portion of% 75% -1.10% change (3) Disposal Cost Adjustment EXAMPLE ONLY Row 2018 2019 2020 2021 Tonnage Rate Adjustment 1 Base Tonnage Rate ($/ton $362 when proposal submitted) 2 Tonnage Rate in next contract $398 $398 $398 year (July 1 - June 30) 3 Percent increase (decrease) ° 9.94 /o 9'94% 9.94% from contract start Disposal Ton -per -Customer Adjustment 4 Prior year tons, actual 8,588.19 8,766.58 8,843.25 8,972.45 (January 1 - December 31) 5 Customer actuals (as of April 3,115 3,150 3,245 3,240 9) 6 Ratio, tons / customer 2.757 2.783 2.725 2.769 7 Percent increase (decrease) 0.94% -1.16% 0.44% from contract start Disposal Cost Component Adjustment, effective July 1 8 (1 + Row 3) x (1 + Row 7) - 1, 10.98% 8.67% 10.43% rounded to hundredths Page 137 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 36 of 93 9 Disposal Cost Component $14.83 $16.46 $17.89 $19.75 Note: Green cells are the contract start, which is used as the basis for calculations in all future years. Yellow cells are data that would be input each year based on tonnage rate, customer accounts, and scale house records. "tons and customers refer to residential accounts+ commercial dumpsters. The number of residential customers refers to roll cart customers and self -haul customers. The number of commercial customers refers to the number of containers in service. It excludes commercial roll offs where customers are billed for the actual cost of disposal. All numbers shown are examples (not actuals) shown for illustrative purposes. In this example, the disposal component of rates in initial proposal would be adjusted by 5.64% to take effect on the contract start date. The initial proposal rates would be adjusted by 7.27% and would take effect on July 1, 2020, and 9.01% on July 1, 2021. (4) Examole Aoolication of Annual Uodate to Rate Components. Cost Components Rate Component Proposed Rate Next Year Adjustment Method Rate Adjustment Rate s Collection and Administrative CPI $13.57 $0.15 $13.72 Costs Fuel Fuel PPI $3.30 ($0.04) $3.26 Fixed (rent, depreciation, lease) No inflators $9.00 $0.00 $9.00 Disposal Cost Tonnage rate and $14.83 $0.84 $15.67 (Pass Through) tons/customer Subtotal $40.70 $0.95 $41.65 Profit (7.5% of $3.30 $0.08 $3.38 Rate Example Rate $44.00 $1.03 $45.03 (5) Adjusted Contractor Service Fee. The adjusted contractor service fee will be the current rate plus the sum of the rate adjustments. SECTION 12: MISCELLANEOUS PERFORMANCE OBLIGATIONS 12.01 Compliance With Applicable Laws. a. In General. All actions taken by Contractor under this Contract shall comply with all Applicable Laws. No Performance Obligation may be construed to relieve Contractor of any obligations imposed by Applicable Law. Contractor shall acquire and maintain in good standing all permits, licenses, and other entitlements necessary to complete its Performance Page 138 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 37 of 93 Obligations. If a Permit issued by KIB remains in effect after the expiration or termination of this Contract, Contractor nevertheless may not operate within KIB for collection of Solid Waste formerly collected under this Contract. THIS PROHIBITION WILL SURVIVE THE TERMINATION OF THIS CONTRACT and KIB may seek specific enforcement of this prohibition pursuant to the provisions of this Agreement and as otherwise authorized by law. At least 60 days prior to the Contract Commencement Date, and thereafter as requested, Contractor shall promptly deliver to KIB copies of any and all Permits, as well as other documentation, sufficient to evidence that Contractor has complied with all permitting and licensing requirements mandated by Applicable Law. Contractor shall pay all taxes pertaining to its Performance Obligations under this Contract. b. No Limitation on Duty to Comply. References in this Contract to particular provisions or requirements of Applicable Law may not be construed to limit Contractor's obligation to comply with all provisions of Applicable Law. Those references are intended to facilitate Contractor's satisfaction of its Performance Obligations and KIB's administration and specific enforcement of this Contract. Those references may not be construed to constitute lack of Contractor obligation to comply with other provisions or requirements of Applicable Law that are not specifically referred to or cited in this Contract. If any provision of this Contract is more stringent than Applicable Law, Contractor will comply with that provision. c. Fines and Penalties. Contractor is solely liable for all fines and penalties that are imposed due to Contractor 's actions, including fines and penalties that are the result of Contractor's Violation of Applicable Law. Contractor will not seek reimbursement from KIB or any Customer for any fines or penalties so imposed. Contractor will inform KIB within 24 hours upon receiving any violations, fines or penalties. d. Contractual Obligations. All Applicable Laws are incorporated in this Contract by reference as if set forth fully herein, and Contractors compliance with such shall be construed as part of Contractor's Performance Obligations. If any Applicable Law is inconsistent with this Contract, the more stringent will apply. (1) Breaches. In addition to or in lieu of prosecuting violations of the KIB Code as misdemeanors, infractions, or other manner provided under the KIB Code, KIB may enforce Contractor's obligations under Applicable Law (Including the KIB Code) in the same manner as it may enforce Contractor's other contractual obligations under this Contract (including specific performance and as Breaches subject to cure), whether or not noncompliance with those provisions of Applicable Law has become a Violation. Neither prosecution of Contractor for noncompliance with Applicable Law nor enforcement of Applicable Law shall be a condition precedent to enforcing those Performance Obligations. In determining whether or not Contractor is in noncompliance with those provisions, the standard of proof applicable Page 139 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 38 of 93 to breach of contract will apply. KIB has no obligation to enforce any Applicable Law. (2) Violation. Contractor •s Violation of Applicable Law is a Default subject to contest pursuant to Section 15of this Contract. e. KIB's Protection of Public Safety, Health, and Welfare. Contractor acknowledges that KIB is authorized to make all necessary and reasonable rules and regulations regarding all aspects of MSW Management Services to protect the public's health, safety, and welfare. No provision in this Contract may be deemed to limit KIB's power to take any action that KIB, in its sole discretion, deems necessary or appropriate to protect the public's safety, health , and welfare . f. Compliance With KIB Code. Contractor must comply with the KIB Code, subject to possible adjustments in Contractor Service Fee in the event of Changes in Law. Contractor warrants and represents that it is fully acquainted with the provisions of KIB Code. Contractor must pay Liquidated Damages with respect to non-compliance with specified provisions of the KIB Code, including failure to remedy any Violation of KIB Code within five (5) days of the date of notice of Violation, and in the event of conviction of a Violation. g. Inspection or Audit at Contractor's Office. Upon at least 7 days' prior written request, Contractor will make the Records available to KIB or its designees for inspection, review or audit at Contractor Office during Contractor Office Hours. 12.02 Contractor's Personnel. Identification, Appearance, and Conduct. Contractor will train and require each of its personnel to present a neat, tidy and orderly appearance, and shall require those personnel responsible for Collecting, Delivering, and Disposing of Refuse or Recyclables to wear uniforms and safety vests identifying them as Contractor's employees. Employees shall be directed to conduct themselves in a courteous manner, refrain from using loud or profane language while on duty, and to perform Collection in as quiet a manner as possible. b. No Gratuities. Contractor will not permit its personnel to demand or solicit, directly or indirectly, any additional compensation or gratuity from any Customer or member of the public. c. Compliance with OSHA. Receipt of a citation or failure -to -abate notice from the State Division of Occupational Safety and Health or any other similar Regulatory Authority shall constitute a Breach of this Agreement. 12.03 Communication With KIB. a. KIB Point of Contact All official communications from Contractor to KIB regarding this Agreement, or any of the Parties' respective rights and obligations thereunder, shall be directed to the Project Manager. Page 140 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 39 of 93 b. Responsiveness to KIB. (1) Telephone Calls. Contractor will return any telephone calls it receives from KIB, to the individual who made that call, no later than the next KIB Business Day. (2) Meetings. Within one week of oral or written direction by KIB, Contractor will meet with KIB during KIB Office Hours at the location directed by KIB. (3) E-mails. Contractor will respond to all a -mails from KIB within two (2) KIB business days. (4) Written Correspondence. Contractor will respond to written correspondence from KIB within one week of receipt, or at such other time as may be specified by KIB. SECTION 13: INDEMNIFICATION, INSURANCE, LETTER OF CREDIT 13.01 Indemnification. a. Contractor's Agreement to Indemnify KIB. To the extent allowable under Applicable Law, Contractor agrees that it will Indemnify and hold harmless, defend with counsel approved by KIB, and release KIB and KIB's Related Parties from and against all Liabilities and Losses paid, incurred or suffered by, or asserted against, KIB or KIB's Related Parties arising out of or in connection with this Contract, including in connection with any alleged failure of KIB or KIB's Related Parties to enforce provisions of this Contract or of Applicable Law. Contractor understands and acknowledges that this is intended to operate as an agreement pursuant to 42 U.S.C. Section 9607(e), and any corresponding provisions of the laws of the State of Alaska, to insure, release, protect, hold harmless and indemnify KIB from Liabilities and Losses set forth herein. b. Indemnity for Liabilities and Losses Arising from Contract Services. Contractor's Indemnity is limited to Liabilities and Losses resulting from Contract Services provided by Contractor from the Contract Commencement Date through the Termination Date. However, CONTRACTOR'S OBLIGATIONS UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT. Reimbursement of Enforcement Costs. If Contractor fails to pay any Indemnities and that failure results in any costs to KIB, within fifteen (15) days of KIB request, Contractor will pay KIB's Reimbursement Costs. 13.02 Required Insurances. a. Coverage Requirements. Without limiting its Indemnities, Contractor will secure and maintain insurance coverage meeting the requirements in this Section. KIB may require Contractor to secure and maintain larger amounts or types of coverage If it compensates Contractor the Direct Costs of the additional premium for that coverage under Section 11.02. Page 141 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 40 of 93 Contractor may use a combination of primary and excess insurance coverage to satisfy these requirements. KIB may reduce insurance requirements If it determines that the reduction is in KIB' s best interest. Each liability policy must provide contractual liability coverage for Contractors Indemnities, including any necessary endorsement, schedule or other documentation. (1) General Liability Insurance. Written on ISO policy form CG 00 01 (occurrence) or its equivalent (and not CG 00 02 claims made) with limits of not less than the following: General Aggregate: $4 Million Products/Completion Operations Aggregate: $4 Million Personal and Advertising Injury: $1 Million Each Occurrence $2 Million (2) Liability Coverage for Pollution Conditions Resulting from Transported Cargo. With a limit of not less than $2 million per occurrence covering Liabilities and Losses that the Contractor becomes legally obligated to pay as a result of claims for bodily injury, property damage, cleanup costs and other fines, fees or expenses assessed by federal or state agencies, KIB, or third parties, which result from pollution conditions caused by transported cargo, including waste. For the purposes of this subsection, "pollution conditions" includes the dispersal, discharge, release, or escape of any solid, liquid, gaseous or thermal irritant or contaminant - such as smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, medical waste, and waste materials - into or upon land, any structure on land, the atmosphere, or any watercourse or body of water, including groundwater, provided the conditions are not naturally present in the environment in the amounts or concentrations discovered . Contractor's general liability policy may be endorsed to provide for this pollution liability coverage. (3) Automobile Liability Coverage. Such insurance coverage shall be: written on ISO policy forms CA 00 12 or CA 00 20 (or their equivalent) with a limit of liability not less than $2 million for each accident endorsed to delete the pollution and/or the asbestos exclusion and include pollution liability (using form CA 99 48 or its equivalent) for accidental spills and discharges while transporting and/or processing materials; and, must cover all Vehicles that Contractor operates on public roads. (4) Financial Responsibility Coverage. If Contractor is subject to federal regulations, Contractor also will maintain any other coverage necessary to satisfy state or federal financial responsibility requirements. (5) Workers' Compensation and Emplovers' Liability. Contractor shall maintain coverage that meets the following requirements: (i) Workers' compensation benefits required by Applicable Law Page 142 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 41 of 93 (including the State Labor Code or by any other state labor law), and for which Contractor is responsible; and, (li) Employers' Liability coverage with limits of not less than the following: Each Accident : $1 Million Disease — Policy Limit $1 Million Disease — Each Employee $1 Million b. Insurer qualifications. Contractor will secure insurance provided by an insurer that: (1) Is deemed acceptable by KIB; (2) Is an admitted company authorized to do business in the State of Alaska; (3) Has a size category of VII or larger by AM. Best Company, Inc.; and, (4) Has a rating of A or better by AM. Best Company, Inc. c. Insurance Coverage Requirements for Subcontractors. Contractor will insure each Subcontractor performing Contract Services or transportation of Solid Waste by providing evidence that either: (1) Contractor is maintaining insurance required by this Section covering the activities of the Subcontractor; or, (2) The Subcontractor is maintaining that insurance itself d. Evidence of Coverage. Contractor will provide certificates of insurance, endorsements, schedules and other evidence of insurance coverage requested by and acceptable to KIB at the following times: (1) On or before the Contract Commencement Date, (2) With submission of each Annual Report, (3) Promptly upon renewal of policies, and (4) Within ten (10)days of KIB's request. e. Certificates of Insurance. Contractor will provide certificates (or other evidence of coverage) containing, at a minimum, the following information with respect to Contractor and any Subcontractor (1) Contract Name. Certificates of Insurance must explicitly identify this Contract (for example, UNDER DESCRIPTION OF OPERATIONS), and if necessary to secure contractual liability coverage as an "insured contract" or otherwise, including a schedule or endorsement that specifically identifies this Contract; Page 143 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 42 of 93 (2) Policy Details. Coverage type(s), policy numbers, policy effective and expiration dates, policy limits, and identification of each required insurance services office (ISO) policy form or confirmation of its equivalency to ISO policy forms required under this Contract (such as "auto liability ISO form CA 00 12"). Where this Contract does not require a specific ISO policy form, the certificate of insurance must specifically reference the required type of coverage (such as "pollution liability" under TYPE OF INSURANCE - OTHER) together with a summary description of its coverage (such as "pollution conditions caused by transported cargo" under SPECIAL PROVISIONS); (3) Thirty -Day Cancellation Notice Requirement. Certificates of Insurance shall contain the express condition that KIB must be given written notice by mail at least thirty (30) days in advance of cancellation for all policies evidenced on the certificate of insurance. Endorsements cannot contain mere "best effort" modifiers or relieve the insurer from its responsibility to give that notice and the CANCELLATION information on the certificate of insurance must delete language such as "failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representatives". (4) Deductibles and Self -Insured Retentions. Certificates of Insurance shall identify any deductible and self -insured retention. Upon KIB request, Contractor will reduce any self -insured retention as it applies to KIB or provide a letter of credit, certificate of deposit or other financial assurance acceptable to KIB guaranteeing payment of all retained losses and related costs and expenses related to investigations, claims administrations, and legal defense. The letter of credit or certificate of deposit must be provided by a bank satisfactory to KIB; and (5) Claims Made. If KIB waives the prohibition on procuring claims made policies and insurance coverage is written on a claims -made form, then evidence is required that the "retro date" is before the Contract Commencement Date. Contractor must maintain that coverage for at least five (5) years after the Termination Date (or longer as required under this Contract). Promptly upon KIB request, Contractor must provide KIB with evidence of that coverage. THIS PROVISION SURVIVES THE TERMINATION OF THIS CONTRACT. Endorsements. Contractor must provide copies of the following endorsements or other documentation with respect to Contractor and any Subcontractor satisfactory to KIB: (1) Additional insured endorsement to each liability policy, explicitly adding KIB and its "officers, agents, and employees" as an additional insured party; Page 144 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 43 of 93 (2) Waiver of subrogation; (3) Establishing Contractor's insurance as primary, with respect to all liabilities arising from Contractor's performance of any and all Contract Services; and, (4) Providing dedicated limits under a liability policy in favor of KIB as an additional insured. g. Schedules. Contractor must provide schedules or other evidence that liability policies of Contractor and any Subcontractor provide contractual liability coverage for Indemnities, such as listing this Contract as an "insured contract". h. Signature verification. At KIB' s request, Contractor must provide documentation verifying that the individual signing or countersigning the certificates, policies, endorsements, or other evidence of coverage of Contractor and any Subcontractor is authorized to do so and identifies his or her company affiliation and title. KIB may require complete, certified copies of Contractor's insurance policies at any time. i. Notice of claims. If any Person makes a claim against Contractor or any Subcontractor exceeding the amount of any deductibles or self -insured retentions, Contractor will promptly notify KIB of the claim. j. Contractor accounting. Contractor will institute a comprehensive accounting system satisfactory to KIB to monitor all insurance requirements under this Contract, including those of each of its Subcontractors. k. Contractor compliance. Contractor will comply with all requirements of its insurance policies and insurers. 13.03 Payment Security. Contractor shall provide the following to ensure payment of disposal fees and reimbursement of billing costs incurred by KIB in the event of a Default or Breach by Contractor: a. Performance Bond. Contractor shall provide a Performance Bond to KIB issued by an insurance company approved by KIB to secure payment of delinquent disposal fees in the following principal amounts: (1) During the first contract year: $348,000.00 (2) During the second contract year: $382,000.00 (3) During the remainder of the contract term: an amount equal to 3 months of the average disposal fees paid during the previous contract year. b. Pledged Bank Account. Contract shall deposit with a Bank approved by KIB the sum of $55,000.00 to be used to reimburse KIB for costs it may incur in billing refuse Customers in the event of a Default or Breach by Contractor under this Agreement. KIB shall be named as the only party authorized to Page 145 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 44 of 93 make withdrawals from the account, and Contractor shall direct the Bank that holds the account to deliver monthly statements to KIB. Any interest on the account shall be payable to the Contractor. c. Payment Upon Default. (1) In the event that Contractor fails to pay disposal fees when due, or is otherwise in Breach or Default of this Agreement, KIB may draw upon the Performance Bond, in one or more drawings, any amounts of money due to KIB but unpaid. (2) KIB may draw on the Pledged Bank Account, in one or more drawings, any reasonable expenses incurred by KIB in the event that, due to Contractor's Default or Breach, KIB assumes responsibility for issuing billing statements to Customers for refuse services. d. Return of Security. 1) The Performance Bond shall terminate, and amounts in the Pledged Bank Account may be paid to Contractor, no earlier than the date upon which KIB issues a certificate stating that: This Contract has expired; or, (ii) This Contract has been terminated for a period of 180 days or such other preference period provided under applicable law with respect to Contractor's bankruptcy or insolvency; or, (iii) Contractor has substituted an alternative letter of credit or other security document that KIB, in its sole discretion, has deemed acceptable; and, (iv) Contractor has paid to KIB all amounts to which it is entitled under this Contract. e. Survival of Tenns. THIS SECTION 13.03 SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT. 13.04 Guaranty Agreement. Any Person that served in any way as the basis for KIB' s evaluation of Contractor's financial strength and creditworthiness as part of Contractor's proposal to KIB must be made a legal, valid, and binding Guarantor of this Contract, and proof of such must be submitted to KIB in a form that KIB deems satisfactory. 13.05 Assurance of Performance. In addition to any other remedies available to KIB pursuant to this Contract or any other applicable laws, it may at its sole discretion demand from that Contractor provide reasonable assurances that it will fully satisfy any of its Performance Obligations, and that such assurances be provided by a specified date, in any of the following instances: Page 146 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 45 of 93 a. Labor Unrest. Contractor is the subject of, or is otherwise affected by, any labor unrest, including work stoppage or slowdown, sick-out, picketing, lock- out, or other concerted job action, which continues in excess of six (6) days. b. Insolvency. KIB reasonably determines that Contractor is unable to regularly pay its debts as they become due, as demonstrated by Contractor's failure to pay: (1) Any tipping fee(s) at any Solid Waste Management Facility; (2) Any insurance deductibles or self -insured retention; (3) Any employee's wages; and, (4) Any other bill, such that it becomes delinquent for a period of more than 60 days. c. Monetary Judgments, Penalties, or Fees- Contractor is the subject of fines, penalties, or civil or criminal judgments or orders entered by any court, federal or State agency, or Regulatory Authority, which are or are estimated to be in excess of the past three (3) months of Contractor Service Fees collected by Contractor. SECTION 14: CHANGES IN SCOPE OF CONTRACT OBLIGATIONS 14.01 Changes to Performance Obligations. a. Upon Request by KIB. KIB may request that Contractor implement a change of its Performance Obligations under this Contract. Unless otherwise directed by KIB, Contractor shall submit its proposal within ten (10) KIB Business Days. KIB may withdraw its request at any time, for any reason. b. Upon Contractor's Request. Contractor may propose a change to its Performance Obligations under this Contract by submitting a Proposal to KIB, which shall conform with the requirements of Section 14.02. 14.02 Proposal Requirements. a. Contents. In its proposal, Contractor will include such supporting documentation as KIB deems necessary, and must describe its detailed plan for implementing the requested or proposed changes, and such description shall include the following: (1) A task list and time -line implementation schedule; (2) Goods or Services, including any Subcontractor, necessary to implement the change; and, (3) Any change in Contractor Service Fee and cost substantiation therefore, including Contractor's changes in Direct Costs, taking into Page 147 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 46 of 93 account both incremental Direct Costs and savings offsets, such as any: (i) Vehicle modifications; (li) Addition of Receptacles, Vehicles, or routes; (iii) Shortening or extension of route time; (iv) Changes to personnel; and, Page 148 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 47 of 93 (v) Increases in transportation distance or time to a Solid Waste Management Facility. b. Contractor's Proposal Deemed an Offer. Contractor's proposal will be deemed Contractor's offer to KIB to implement the directed or proposed change. Contractor's proposal will remain binding for at least thirty (30) days from the date that it has been submitted to KIB. C. Review by KIB. (1) Response/Comments. Within thirty (30) KIB Business Days of receiving Contractor's proposal, KIB may review, approve, or disapprove the proposal, or propose amendments to it. If KIB does not respond within that time, its approval will be deemed denied. If Contractor's proposal includes a request for change in the Contractor Service Fee that must be approved by the Assembly, KIB may review, approve or disapprove the proposal within forty-five (45) days. (2) Acceptance of Comments. Contractor will accept or reject any proposed amendments within fifteen (15) KIB Business Days of receiving them. If Contractor accepts the amendments, KIB will prepare a formal amendment to this Contract that will implement the proposal. (3) Refection of Comments J Negotiations. If Contractor rejects KIB's comments, the Parties will negotiate in good faith for a period of at least fifteen (15) KIB Business Days following Contractor's receipt of KIB comments. SECTION 15: BREACH OF AGREEMENT, DAMAGES, AND DEFAULT 15.01 Liquidated Damages. a. Acknowledgements. The Parties hereby acknowledge that: (1) KIB has incurred considerable time and expense negotiating this Contract to secure an improved level of Collection and Recycling service quality, increased Diversion and increased Customer satisfaction. Therefore, consistent and reliable Contract Services are of utmost importance to KIB and Customers. (2) In awarding this Contract to Contractor, KIB considered and relied on Contractor's municipal references, experience, qualifications, and reputation as to service quality, and Contractor's Breach represents a loss of bargain to KIB. (3) Quantified standards of performance are necessary and appropriate to ensure consistent and reliable Contract Service, and if Contractor fails to Page 149 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 48 of 93 Contract Na. FY2019--25 meet Performance Obligations, KIB will suffer damages in subjective ways and In varying degrees of intensity that are incapable of measurement in precise monetary terms. The Imposition of liquidated damages is not a penalty, but is instead recognition of the difficulty in ascertaining those damages that may reasonably result from Contractor's breach of its Performance Obligations . (4) Termination of this Contract for Default and other remedies provided in this Contract are, at best, a means of future correction and not remedies that make KIB whole for past Breaches. b. Non -Waiver. KIB's assessment of Liquidated Damages for Contractor's breaches does not preclude KIB from enforcing the KIB Code in the event that such breaches constitute Violations. C. Procedure. (1) Notice of Intent to Assess Liquidated Damages. Before KIB may assess Liquidated Damages pursuant to this Section, for each category of violation (that is, for each of the categories listed in Exhibit B), KIB shall give Contractor written notice of Contractor's violation of the performance standard and of KIB's intent to assess Liquidated Damages for any future violation of the same performance standard. The purpose of this provision is to give Contractor notice that KIB considers Contractor to have violated a performance standard, and that KIB will assess Liquidated Damages if such violations are repeated. (2) Procedure for Review of Liquidated Damages. KIB may assess Liquidated Damages pursuant to this Section monthly. At the end of each month during the term of this Agreement, KIB shall issue a written notice to Contractor ("Notice of Assessment") of the Liquidated Damages assessed and the basis for each assessment. The assessment shall become final unless, within ten (10) calendar days of the date of the notice of assessment, Contractor provides a written request for a meeting with the to present evidence that the assessment should not be made. KIB shall schedule a meeting with Contractor as soon as reasonably possible after timely receipt of Contractor's request. KIB shall review Contractor's evidence and render a decision sustaining or reversing the Liquidated Damages as soon as reasonably possible after the meeting. Written notice of the decision shall be provided to Contractor. In the event Contractor does not submit a written request for a meeting within ten (10) calendar days of the date of the Notice of Assessment, KIB determination shall be final and KIB may assess the Liquidated Damages, unless KIB waives this requirement. Liquidated damages shall be assessed according to the schedule set forth in Exhibit B. 15.02 Compensatory Damages. If Contractor fails to deliver any type of Solid Waste to a facility approved by KIB (such as a recyclables processing facility Page 150 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 49 of 93 in connection with any Recyclables collection program that may be established), then in addition to assessing Liquidated Damages, KIB may in its sole discretion assess the following Compensatory Damages, and Contractor will pay KIB the following Compensatory Damages: KIB 's Reimbursement Costs for monitoring Contractor's compliance with its delivery Performance Obligations, including the assignment of KIB personnel to follow Collection Vehicles on Collection routes; and a. KIB's Reimbursement Cost for enforcing or securing specific performance of Contractor's delivery obligation. 16.03 Defaults. The following acts or omissions by Contractor shall constitute a Default of this Agreement. a. Contract Service Defaults. (1) Uncured Breach. Any breach of this Agreement shall be deemed to remain uncured if: (i) KIB notifies the Contractor that a Breach has occurred; and, (ii) The Contractor fails to correct that Breach within twenty (20) days of that Notice, unless KIB agrees in writing to extend the period for correction. (2) Repeated Breach. KIB determines that Contractor repeatedly or habitually Breaches its Obligations under this Contract. (3) ) Contract Service Failures. When not excused by a Contract Service Exception, the Contractor fails to Collect Refuse, either according to its regular schedule or by appointment, in the following amounts: (i) 100 or more missed pickups for more than seven (7) consecutive days. (ii) 500 or more missed pickups during any 12-month period; or, (iii) At least 99.5% of pickups scheduled for a day, for more than ten (10) cumulative days. (4) Failure to Comply with Applicable Law. (i) Violations. A. Material. Contractor does not cure any material Violation of Applicable Law to the satisfaction of KIB or applicable Regulatory Authority within 30 days of the notice, assessment, or determination of that Violation of Applicable Law. Page 151 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 50 of 93 B. Repeated. In KIB's judgment, Contractor repeatedly receives a notice, assessment or determination of the same or different Violation. (ii) Appeals. If Contractor is entitled to appeal and in good faith does appeal a notice, assessment, or determination of Violation of Applicable Law, no Default will be deemed to have occurred until a final decision adverse to Contractor has been entered by the applicable authority. (5) Criminal Activity. Contractor fails to comply with the requirements of Section 16.02 of this Contract. (6) Failure to Timely Pay Contractor Payment Obligation. Contractor fails to pay any Contractor Payment Obligation within fifteen (15) days of the date it is due and payable. (7) Charging in Excess of the Amounts Listed in Contractor Service Fee Schedule. Contractor charges any Customer more than the scheduled Customer Special Service Surcharge listed in the Service Schedule and does not reimburse the excess within th i rt y ( 30) days of Contractor's discovery thereof, KIB notice or Customer request. (8) Failure to allow KIB to perform Contract Services. Contractor fails to timely allow KIB to exercise any of KIB's rights in connection with performing Contract Services under Section 15.09. b. Performance Assurance Defaults. (1) Failure to Provide Adeauate Assurances of Performance. Contractor fails to provide KIB with adequate Performance Assurance when requested. (2) Seizure and Attachment. Any Contract Service Asset is seized, attached or levied upon (other than a pre -judgment attachment) so as to substantially impair Contractor's ability to timely and fully perform Contract Services, and which cannot be released, bonded or otherwise lifted within forty-eight (48) hours, excepting weekends and Holidays. (3) Insolvency. Bankruptcy. and Liguidation. It shall constitute a Default of this Agreement if any of the following events occur, or the Contractor takes any actions in furtherance of such events: (i) Contractor files a voluntary claim for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in effect, unless Contractor retains full control of Contract Service Assets throughout the pendency of that claim; Page 152 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 51 of 93 (ii) Contractor consents to the appointment of or taking of possession by a receiver, liquidator, assignee (other than as a part of a transfer of Contract Service Assets no longer used to provide Contract Services or backup Contract Services), trustee (other than as security of an obligation under a deed of trust), custodian, sequestration, administrator (or similar official) of Contractor for any part of Contractor's operating assets or any substantial part of Contractor's property; (iii) Contractor makes any general assignment for the benefit of Contractor's creditors; (iv) Contractor fails generally to pay Contractor's debts as they become due; (v) A court having jurisdiction enters a decree or order for relief in respect of this Contract, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law now or hereafter in effect, or (vi) Contractor consents to or fails to oppose any similar proceeding; or, (vii) Any court having jurisdiction enters a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator, administrator (or similar official) of Contractor or for any part of Contractor's operating equipment or assets, or orders the winding up or liquidation of the affairs of Contractor. (4) Default under Guaranty. The occurrence of any default under the Guaranty. (5) Transfer. Contractor makes a Transfer without KIB's consent, as required by Section 17. (6) Subcontract. Contractor engages a Subcontractor or enters into a Subcontract without KI B's consent, as required by Section 18.10, and does not terminate that Subcontract within fifteen (15) KIB Business Days of KIB's Notice. c. False Representations and Breach of Warranties. (1) Under this Contract. (i) Contractor makes a representation or certification in or under this Contract, including Section 2, which Contractor knows, or in the course of diligently conducting business and providing Contract Services should have known, is untrue on the date Contractor made it. (ii) Contractor breaches a warranty under this Contract. Page 153 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 52 of 93 (2) As Inducement to Enter Into This Contract. Contractor makes a representation or fails to make a disclosure, whether within this Contract or otherwise, to KIB in connection with or as a material inducement to entering into this Contract or any future amendment to this Contract, which representation or failed disclosure is false or misleading in any material respect when made. 15.04Excused Breaches and Defaults. Uncontrollable Circumstances. If the Contractor is unable to perform, or is delayed in its performance of any of its obligations under this Agreement by reason of any Uncontrollable Circumstances, or force majeure, such inability of delay shall be excused at any time during which compliance is prevented by such event and during such period thereafter as may be reasonably necessary for the Contractor to correct the qualifying event's adverse effects. (1) Notice to KIB. To be entitled to the benefit of this provision, the Contractor must give prompt written notice to KIB, which specifies in detail: (i) The nature and scope of the Uncontrollable Circumstance; (ii) Its expected duration; (iii) The ways in which the event will adversely affect the Contractor 's performance of Contract Services; and, (iv) The steps that the Contractor is taking to mitigate such adverse effects. b. KIB's Rights. (1) Perform Contract Services. Notwithstanding that a Breach due to Uncontrollable Circumstances does not constitute a Default, after the continuance of the Breach for forty-eight (48) hours, in its sole discretion, KIB may nevertheless perform (or cause to be performed) Contract Services in the Contract Service Area itself under Section 15.09. (2) Exercise Other Remedies. After the continuance of any Breach for thirty (30) days, KIB may, in its sole discretion, exercise any other remedy under this Contract, including suspending or terminating this Contract under Section 16.01. 15.05Remedies Upon Breach. As Provided by Law. Either Party may exercise any and all remedies available under law or equity to remedy the other Party's breach of this Contract. A Party's exercise of any one remedy, including KIB' s Page 154 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 53 of 93 assessing Liquidated Damages or Compensatory Damages, is not an election of remedies but is cumulative with any other available remedies. b. KIB's Additional Remedies. In addition to exercising any remedy available at law or equity, upon occurrence of a Default, KIB may exercise any or an of the following additional remedies: (1) Termination. Terminate this Contract or any portion of Performance Obligations, pursuant to Section 16.01(a); (2) Suspension. Suspend this Contract, pursuant to Section 16.01(b); (3) Perform Contract Services. KIB may itself perform Contractor's Performance Obligations, or cause them to be performed by another party, pursuant to Section 15.09; (4) Damages. Assess Liquidated or Compensatory Damages against the Contractor: and, (5) Exercise Financial Assurances. Draw on the Letter of Credit, demand payment under the Guaranty or any Indemnity, or submit any claim under Insurance. (6) Iniunctive Relief. Contractor acknowledges that KIB may be also be entitled to injunctive relief in those instances where an award of damages to KIB for the Contractor's Breach or Default may be inadequate for reasons including the following: (i) Public Health and Safety. The urgency of timely, continuous and high- quality Contract Services, including Collection, Recycling, transportation and/or transfer and Disposal of putrescible solid wastes that constitute a threat to public health; (ii) Procurement Time and Expense. The long time and significant investment of money and personnel (including KIB' s staff, elected officials and KIB Counsel, as well as procurement counsel and consultants) necessary to: A. Develop a scope of Contract Services and Performance Obligations acceptable to KIB; B. Draft this Contract and related procurement documents; C. Solicit comments on this Contract and procurement documents from KIB (and KIB Counsel) and Persons interested in proposing to provide Contract Services D. Meet with those potential proposers to discuss their comments and answer their questions about this Contract and the procurement; E. Finalize this Contract and procurement documents; Page 155 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 54 of 93 F. Solicit proposals for Contract Services; G. Review and evaluate those proposals and seek clarifications of those proposals. H. Award this Contract under KIB's Applicable Law; I. Finalize execution of this Contract, including reviewing commenting on and approving (if required) Contractor Documentation; and, J . Conform KIB Code to the automated Refuse Collection programs. (iii) Reliance an Contractor. KIB' s reliance on Contractor's meeting evaluative criteria on which award of this Contract was based, such as the following: A Solid waste management experience; B. KIB references; C. Qualifications of key personnel; D. Environmental programs and proposed Unpermitted Waste Screening Protocol; E. Litigation history; F. Contractor's proposed transition, Customer education, diversion and other plans; G. Acceptance of terms of this Contract; and, H. Diversion record. (iv) Re -Procurement Time and Expense. The length and significant investment of time and money described in item (ii) to develop alternative MSW Management Services comparable to Contract Services for the price provided under this Contract, and to negotiate new agreements therefore. c. Recovery of Unpaid Contractor Payment Obligations. KIB may collect Contractor Payment Obligations due and owing by Contractor to KIB by any or all of the following means: (1) Demanding payment from Contractor or Guarantor; (2) Drawing on the Letter of Credit; Page 156 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 55 of 93 (3) Submitting claims as an additional insured under Insurance policies or under contractual liability provisions of insurance policies; and, (4) Directing Contractor to offset Contractor Payment Obligation from Contractor Service Fees that Contractor received from Customers to remit them to KIB. d. In the event of default by either party, the non -defaulting party shall provide notice of the default with specificity. No remedies for such default shall accrue unless and until the defaulting party shall have failed to cure said default within 10 days of receipt of such written notice of default, save and except situations that may impact public health or safety, the environment, or may be a violation of law or any provision in Section 15.03 which gives greater than 10 days to cure such particularly identified event of default. 15.06Additional Compensatory Damages. Additional Compensatory Damages. Without limiting KIB' s right to seek Compensatory Damages, pursuant to either this Contract or otherwise available at law, KIB may seek the following additional Compensatory Damages: a. Amounts equal to any Contractor Payment Obligations or other amounts that Contractor has previously paid to KIB but are subsequently recovered from KIB by a trustee in bankruptcy as preferential payments or otherwise; b. If KIB terminates this Contract for Default, KIB' s Reimbursement Costs to provide or re -procure MSW Management Services; and, c. If KIB terminates this Contract for Default, KIB's projected Direct Costs of replacing MSW Management Services in excess of Contractor Service Compensation for the balance of the Term remaining if this Contract had not been terminated, as based on service fees under replacement agreements for those MSW Management Services. THIS SECTION WILL SURVIVE THE TERMINATION OF THIS CONTRACT FOR 180 DAYS OR OTHER PREFERENCE PERIOD PROVIDED UNDER APPLICABLE LAW WITH RESPECT TO BANKRUPTCY OR INSOLVENCY. KIB may draw upon the Letter of Credit, Guaranty or any other available Performance Assurance to pay compensatory damages. 15.07 Waivers. a. Waiver of Breach. No waiver of any Breach or Default constitutes a waiver of any other Breach or Default. Failure of KIB to enforce any provision of this Contract may not be construed as a waiver of KIB' s enforcement rights. KIB' s subsequent acceptance of any damages or other money paid by Contractor may not be deemed to be a waiver by KIB of any pre-existing or concurrent Breach or Default. Page 157 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 56 of 93 Contractor Waiver of Certain Defenses. Contractor acknowledges that it is solely responsible for providing Contract Services and by this Contract irrevocably and unconditional waives defenses to the payment and performance of its obligations under this Contract based on failure of consideration; contract of adhesion; impossibility or impracticability of performance; commercial frustration of purpose; or the existence, non- existence, occurrence or non- occurrence of any foreseen or unforeseen fact, event or contingency that may be a basic assumption of Contractor with regard to any provision of this Contract; provided that Contractor does not by this Contract waive any defenses under this Contract of Uncontrollable Circumstances. 15.08 Costs. a. Non -Prevailing Party. The non -prevailing Party in any dispute involving this Contract will pay the prevailing Party's Reimbursement Costs, including standard and reasonable attorney's fees. b. KIB's Enforcement Costs. Contractor will reimburse KIB promptly upon request for either or both of the following KIB's Reimbursement Costs: (1) Costs resulting from KIB's investigation of any alleged Breach; or, (2) Costs incurred by KIB as a consequence of Contractor's Breach. 15.09 KIB Right to Perform. a. Events. KIB may perform, or provide for the performance of, any or all Performance Obligations if KIB reasonably determines that: (1) Contractor, due to Uncontrollable Circumstances or for any reason whatsoever, fails, refuses or is unable to Collect any Solid Waste and operate the Recyclables Processing Facility for a period of forty- eight (48) hours after the Collection or acceptance was required under this Contract, and KIB determines in its sole discretion that there is a danger to the public health, safety or welfare; or, (2) KIB suspends or terminates this Contract b. Continuation. KIB has no obligation to continue performing or providing for the performance of any or all Performance Obligations and may at any time, in its sole discretion, cease to provide any or all Performance Obligation. However, KIB' s right to perform or provide for the performance of any or all Performance Obligations will continue until either: (1) Contractor demonstrates to KIB's satisfaction that Contractor is ready, willing and able to resume timely and full performance of all Performance Obligations; or, Page 158 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 57 of 93 (2) KIB is capable of making alternative arrangements for providing MSW Management Services and/or Recycling service, in its judgment comparable to Contract Services in scope and price, which may include contracting with another service provider. c. Notice. KIB may give Contractor 24-hour oral notice that KIB is exercising any or all of KIB' s rights under this Section. The oral notice will be effective immediately, but to remain effective, within another 24 hours KIB must confirm that oral notice with a written Notice. d. KIB Purchase or Lease of Service Assets. Should KIB elect to exercise its authority to perform the Contract Services as provided in this Section 15.09, Contractor shall enter into good faith negotiations for the sale or lease to KIB of all Service Assets reasonably necessary to do so, consistent with Section 3.03. SECTION 16: SUSPENSION OR TERMINATION OF CONTRACT 16.01 KIB's Right to Suspend or Terminate. a. Contractor is willing to agree to commercially -standard suspension and termination provisions tied to the matters of default addressed in Section 15, but only after the right to cure period in the 16.01 f. b. Termination Events. KIB may, in its sole discretion, terminate this Contract should any of the following Termination Events occur: (1) Contractor's Default; (2) Contractor's Breach due to Uncontrollable Circumstances, which remains uncured for a period of 30 days; (3) Any Contract Provision, as defined in Section 22, is ruled unconstitutional, illegal, invalid, non -binding or unenforceable by any court of competent jurisdiction, regardless of whether it is deemed severable; or, (4) Any Guarantor transfers the Guaranty without the consent required by the Guaranty, and on or before 15 days after the transfer, the Guarantor does not provide KIB with a substitute Guarantor or alternative financial credit support satisfactory to KIB. c. Suspension Events. Upon the occurrence of any Termination Event, KIB may, in lieu of Termination, and in its sole discretion, suspend this Contract, in whole in or in part, for no longer than 30 days. During the suspension period Contractor will have the opportunity to demonstrate to the satisfaction of KIB that Contractor can once again fully perform Contract Services. If Contractor so demonstrates to satisfaction of KIB in its sole discretion, KIB 's right to suspend or terminate this Contract will cease and Contractor may resume providing Contract Services. If Page 159 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 58 of 93 Contractor does not so demonstrate, KIB may terminate this Contract and exercise its additional rights and remedies. d. Notice to Contractor. KIB will give Contractor a Notice of Termination or Suspension effective at the following times: (1) Immediately or upon other period stated by KIB with respect to the following Defaults, more fully described in Section 15.03: {i) Failure of Contractor to provide adequate Performance Assurances; or, (ii) Insolvency, bankruptcy, liquidation, to the extent permitted by Applicable Law (Insolvency, Bankruptcy, Liquidation); (2) Upon Contractor's receipt of Notice with respect to any other Default, unless KIB specifies an alternative date in the Notice; or, (3) Such other date as KIB may specify in the Notice e. Reduction in Fee Upon Partial Suspension. If KIB suspends a portion of this Contract or the Contractor's Performance Obligations, Contractor will continue to fully perform its remaining Performance Obligations and the Contractor Service Fee will be adjusted to reflect reductions in Performance Obligations. f. Contractor's Right to Cure. Should KIB at any time, contend that Contractor has breached any material provision of this Agreement, KIB shall immediately notify Contractor in writing of KIB's contention. Contractor shall have a reasonable time to cure any such alleged breach, which in all events shall not be less than thirty (30) calendar days, or any such longer period as reasonably needed to cure said breach, provided Contractor initiated curing the breach within such thirty (10) calendar day period unless agreed to in writing by the borough, and continues to diligently pursue such breach. If Contractor fails to cure the breach within such time, KIB may terminate this Agreement and/or pursue any other remedy provided for in this Agreement, at law or in equity. Classes of breach that are not subject to the "notice and cure" requirements - especially breaches resulting from the violation of laws, including laws governing life and safety. Contractor shall only have a right to cure if it has not committed the same breach 3 times within the preceding 12 months. 16.02 Criminal Activity. a. Notice. Contractor will immediately give Notice to KI B of either of the following with respect to Contractor or any Contract Manager (except for the Contract Manager in a Position of influence): (1) ) Conviction of a Criminal Activity ("Conviction" or, Page 160 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 59 of 93 (2) Plea of guilty or nolo contendere to a Criminal Activity ("Plea") Contractor will promptly give Notice to KIB of any of those convictions or pleas with respect to the Contractor Manager in a Position of Influence. b. Cure. Upon the occurrence of any conviction or plea defined in Subsection a, Contractor immediately will do or cause to be done both of the following: (1) Terminate from employment anyone in a Position of Influence or remove from office anyone in a Position of Influence, unless otherwise directed or ordered by a court or Regulatory Authority of competent jurisdiction and/or authority, and unless termination would subject Contractor, an Affiliate or any of its Contract Managers to substantial liability for breach of any labor agreement entered into before the Contract Commencement Date; and, (2) Refrain from employing or appointing that individual or individuals responsible for the Criminal Activity from any other Position of influence. c. KIB remedies. In the event that Contractor or any Affiliate fails to effectuate the cure described in Subsection b, or the Criminal Activity is related to this Contract or occurs within the KIB' s municipal boundaries, KIB may either suspend or terminate this Contract as it deems proper. d. Limitations on Contractor Manager. Contractor shall not permit any Person to serve as Contractor Manager who has previously been convicted of a Criminal Activity, or plead "guilty" or "nolo contendere" to any Criminal Activity. SECTION 17: TRANSFER OF CONTRACT. 17.01 Transfer by Contractor. a. Acknowledgment. Contractor acknowledges that Contractor submitted evidence to KIB with respect to Contractor's experience, expertise and qualifications to provide Contract Services, and that Contractor's experience , expertise and qualifications were material considerations of KIB in entering into this Contract with Contractor. b. KIB Consent Required. Contractor will not Transfer, in whole or in part, voluntarily or involuntarily, this Contract, the Guaranty, or any rights or duties in this Contract or under the Guaranty, without KIB's Assembly's prior, written consent, which consent shall not be unreasonably withheld, conditioned, or delayed. Contractor may not circumvent KIB's consent rights by securing Goods or Services from a Subcontractor. Page 161 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 60 of 93 Contractor acknowledges that in its submitted proposal to provide Contract Services and enter into this Agreement it described the experience, qualifications, and operations not only of Contractor itself, but of the following companies that are wholly owned by Contractor as of the Contract Commencement Date: (together, "Contractor's Operations"). Furthermore, in its proposal Contractor did not take an exception to its Performance Obligation to provide the Guaranty. Therefore, in lieu of providing the Guaranty, Contractor will not Transfer in whole or in part, voluntarily or involuntarily any of Contractor's Operations without KIB consent, given in KIB's sole discretion. For purposes of this Performance Obligation and KIB right, the definition of "Transfer", the "Contractor" is deemed to include "Contractor's Operations. c. Contractor request Without obligating KIB to give consent, Contactor will demonstrate to KIB' s satisfaction that the proposed transferee has the operational and financial ability to satisfy Performance Obligations. KIB is not obligated to consider any proposed Transfer by Contractor if Contractor is in Breach at any time during KI B's consideration. d. Payment of KIB's Transfer Costs. (1) Transfer Deposit. Contractor must make any request for KIB's consent to a Transfer in the manner prescribed by KIB. Contractor must pay KIB the Transfer Deposit before KIB will consider Contractor's request. "Transfer Deposit" means lesser of the following refundable amounts: (i) $1,500 or, (ii) KIB' s anticipated Transfer Costs. (2) Additional Transfer Costs. Within 30 days of KIB's request, Contractor will further pay KIB' s additional Transfer Costs in excess of the Transfer Deposit, whether or not that KIB approves the Transfer. "Transfer Costs" means such KIB Reimbursement Costs resulting from its: (i) Consideration and review of Contractor's request for Transfer; (ii) Investigation regarding the suitability of the proposed transferee; (iii) Determination of whether or not to consent; and, (iv) Preparation of those documents necessary to effectuate the Transfer. (3) KIB's Reimbursement Costs of Enforcement. Within 30 days of KIB's request, Contractor will pay KIB's Reimbursement Costs for fees and investigation costs as KIB deems necessary to enjoin the Transfer or to otherwise enforce this Section. Page 162 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 61 of 93 e. Novation. If KIB consents to Transfer of this Contract, upon request of the transferee, KIB will execute a novation under which the Person which is the transferee Contractor assumes all the rights and Performance Obligations of the transferor Contractor. SECTION 18: THE PARTIES 18.01 Independent Contractor. The Parties agree and the Contractor acknowledges as follows: a. Contractor is an independent entity and contractor engaged by KIB and not KIB's Related Party or a party to any joint venture with KIB. b. No employee or agent of Contractor is deemed to be KIB's Related Party. c. Contractor will have the exclusive control over the manner and means of performing Contract Services and over all Persons performing Contract Services. d. Contractor is solely responsible for the acts and om1ss1ons of Contractor's Related Parties, none of whom is deemed to be KIB's Related Party. e. Nothing in this Contract may be construed as creating an arrangement for handling Unpermitted Waste. f. Neither Contractor nor any of Contractor's Related Parties will obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits that accrue to KIB employees and Contractor expressly waives any claim it may have or acquire to those benefits. g. Contractor bears the sole responsibility and liability for furnishing workers' compensation and all other benefits required by law to any individual for injuries arising from or connected with Contract Services. 18.02 Parties in Interest Nothing in this Contract, whether express or implied, is intended to confer any rights on anyone other than the Parties and the Parties' respective representatives, successors and permitted assigns. Related Parties are third party beneficiaries of provisions in this Contract that reference them. 18.03 Binding on Successors. The provisions of this Contract will inure to the benefit of and be binding on the successors and permitted assigns of the Parties. 18.04 Further Assurances. Each Party agrees to execute and deliver any instruments and to perform any acts as may be necessary or reasonably requested by the other to give full effect to this Contract, including Contractor Documentation. Contractor will complete Contractor Documentation satisfactory to KIB by the Contract Commencement Date. Page 163 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 62 of 93 18.05 Actions of KIB in Its Governmental Capacity. Nothing in this Contract may be interpreted as limiting the rights and obligations of KIB in its governmental or regulatory capacity. 18.06 Contractor's Obligations Performed at Its Sole Expense. Contractor will perform Contract Services solely for the compensation expressly provided for in this Contract. 18.07 Parties Representatives. a. KIB ( 1) Identification. The KIB Representative is the Manager or his or her designee, as may be amended upon Notice to Contractor by KIB in KIB' s sole discretion. (2) Delegation. By authorizing the execution of this Contract, KIB delegates to the KIB Representative the authority to exercise KIB's rights, remedies and options under this Contract and administer this Contract, except with respect to the following, which must be approved by the KIB Governing Body: (i) Extending the Term for an additional year or more; (ii) Suspending or Terminating this Contract; (iii) Approving or disapproving Transfer of this Contract; (iv) Amending this Contract, including amendments to the Contractor Service Fee due to changes in operations pursuant to Section 11.03e, but not to annual adjustments pursuant to Section 11.03b; (v) Indemnities; and, (vi) Exercising any delegation of authority contrary to Applicable Law. b. Contractor Representative. The Contractor Representative is named in Contractor Documentation. The Contractor Representative must have at least 5 years of experience in Solid Waste collection services before being named Contractor Representative. The Contractor Representative is authorized to act on behalf of Contractor in the satisfaction of all Performance Obligations and exercise of Contractor's rights and options under this Contract. 18.08 Due Diligence. Contractor acknowledges that MSW Management Services and Recycling Services, including Contract Services, are highly regulated under Applicable Law, and that waste management is a public health and safety concern. Contractor agrees that it will exercise due diligence in performing Contract Services. Page 164 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 63 of 93 18.09 No Use of KIB Name. Contractor will not conduct any business related to its Performance Obligations under this Contract using any name referencing KIB, or otherwise applies association with or ownership by KIB. 18.10 Subcontractors. a. Subcontracts exceeding $50,000. Contractor will not engage any Subcontractor in an amount exceeding $50,000 for any individual Subcontractor without KIB's prior approval of the Subcontract and Subcontractor. Any Subcontract entered into without KIB's prior approval is void. Contractor will identify approved Subcontractors in Contractor Documentation. b. Contractor Responsibility. Contractor is solely responsible for directing the work of Subcontractors and paying Subcontractors' compensation. c. Removal. KIB may require Contractor to remove any approved Subcontractor for any of the following reasons: (1) Its failure to provide Contract Services; (2) Its non-compliance with Applicable Law, or (3) Its engagement in conduct that, in KIB's judgment, is abusive, rude or unsafe. d. Reference to Subcontractors. Specific reference to Subcontractors under this Contract {such as with respect to compliance with Applicable Law and meeting Insurance requirements) does not imply that lack of specific reference to Subcontractors elsewhere under this Contract Exempts Subcontractors from complying with this Contract. SECTION 19: AMENDMENTS 19.01 Amendments. Means of Amendment. Amendments to Contract rights, remedies and options, unless delegated to the KIB Representative, will be effective upon completion of the following actions: (1) Authorization and direction of KIB Governing Body; (2) Consent of the Contractor; and, (3) Due execution by the Parties of a written amendment to this Contract reflecting those changes. b. Consent by Representatives. All other Amendments to this Contract will be effective upon completion of the following: Page 165 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 64 of 93 (1) Consent of the KIB Representative, except for Contractor's amendments to Contractor Documentation that do not require KIB consent; (2) Consent of the Contractor Representative, except for amendments to this Contract that do not require Contractor consent; and, (3) Due execution by the Parties of text reflecting those changes. Examples of those amendments include the following: (i) Amendments not listed in Subsection a; (ii) Contractor Documentation; and, (iii) Exhibits or Attachments to this Contract (except with respect to Contractor Service Fee other than annual adjustments). c. Due execution. For purposes of this Section, "due execution" of amendments to the text of this Contract means that the Parties' authorized representatives: (1) Witness and sign the written amendment in the form provided on the signature page of this Contract; and, (2) Warrant that they are authorized to execute the amendment. SECTION 20: NOTICES, CONSENTS, AND APPROVALS 20.01 Notices. Notices must be given at the addresses provided in Contractor Documentation attached to this Contract, as follows: a. By Email or facsimile, promptly followed by personal or mailed delivery; b. By personal delivery to the Contractor Representative or KIB Representative, as the case may be; c. By deposit in the United States mail first class postage prepaid (certified mail, return receipt requested); or, d. By commercial delivery service providing delivery verification. Notice by KIB to Contractor of a missed pick-up or a Customer problem or complaint may be given to Contractor orally by telephone to Contractor Representative or other Contractor personnel responsible for taking complaints from KIB or the public. Parties may change their address upon Notice to the other Party. 20.02 Writing Requirements. All Notices, reports, demands, requests, Page 166 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 65 of 93 directions, selections, option exercises, orders, proposals, reviews, comments, acknowledgments, approvals, agreements, consents, waivers, certifications and other communications made under this Contract must be in writing, except the following: a. Oral communication is explicitly authorized; and, b. Communication with respect to routine Contract administration, such as submitting Records or Reports, correcting Reports or, discussing Customer complaints. 20.03 Exercise of Options. Parties will exercise any approval, disapproval, consent, acceptance, option, discretion, election, opinion or choice under this Contract, make a requirement under this Contract, or interpret this Contract ("Discretionary Action") in a manner that is reasonable. Recognizing the essential public health and safety protections this Contract serves, where this Contract specifically provides that the exercise of any Discretionary Action is in either Party's independent, sole, exclusive or absolute discretion, control or judgment, the other Party will not question or challenge the other Party's exercise thereof. Parties will nevertheless exercise their rights and remedies in good faith as required by Applicable Law. Any mediator or court must find the Party's exercise to be reasonable. ECTION 21: INTEGRATIONS. GOVERNING LAW. AND VENUE 21.01 Integrations. This Contract contains the entire agreement between the Parties with respect to their rights and obligations under this Contract. This Contract completely and fully supersedes all prior understandings and agreements between the Parties with respect to their respective rights and obligations, including those contained in each of the following: a. Requests for proposals; b. Proposals; c. Memoranda; d. Correspondence; e. Telephone calls; f. Field trips; g. Interviews; h. Negotiations; and, i. Meetings of the KIB Assembly, and other commission, committees, and boards. Page 167 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 66 of 93 21.02 Governing Law. The Parties' respective rights and obligations pursuant to this Contract shall be determined according to, and governed by, the laws of the State of Alaska 21.03 Severability. a. Generally. Should any court of competent jurisdiction hold that any clause, sentence, provision, section, subsection, exhibit, or attachment of this Contract is unconstitutional, illegal, invalid, non -binding, or otherwise unenforceable, such determination shall not affect any of the remaining provisions of this Contract. This Contract will be construed and enforced as if the Contract Provision did not exist, and the Parties will as a result: (1) Promptly meet and negotiate a substitute for the Contract Provision and any related amendments, deletions or additions to other provisions of this Contract which together effect the Parties' original intent to the greatest extent allowable under Applicable Law; and, (2) If necessary or desirable to accomplish preceding item (1), apply to the court that declared said invalidity for a judicial construction of the substituted Contract Provision and any amendments, deletions or additions to this Contract. Within 10 days of any KIB' s request, Contractor will pay KIB half of the Direct Costs of that application. However, if any Contract Provision with respect to KIB direction to a Solid Waste Management Facility is ruled unconstitutional, illegal, invalid, non- binding or unenforceable by any court of competent jurisdiction, then KIB in its sole discretion may either. (1) Sever that Contract Provision and construe and enforce this Contract under this Section; or, (2) Terminate this Contract. b. Contractor's Waiver of Certain Legal Challenges Contractor agrees not to challenge the constitutionality, legality, validity, enforceability or binding nature of either of the following provisions of this Contract: (1) Contractor's obligation to deliver Refuse to KIB Landfill; and, (2) Contractor's obligation to deliver any other type of Solid Waste (such as recyclables) to any other Solid Waste Management facility as directed by KIB. 21.04 New Contract This Contract is a new obligation between the Parties and is a novation, substitution and replacement for any present or prior contracts or agreements between the Parties connected with or related to MSW Management Services. Page 168 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 67 of 93 21.05 Venue. Any civil action arising from this Contract shall be brought in the Superior Court, Third Judicial District, State of Alaska 21.06 Costs. The non -prevailing Party in any dispute involving this Contract shall pay the prevailing Party's reasonable Reimbursement Costs, including attorney's fees. SECTION 22: ADDITIONAL TERMS AND CONDITIONS Notwithstanding anything herein to the contrary: (a) Contractor shall have no obligation to collect or transport any material which is or contains, or which Contractor reasonably believes to be or contain, radioactive, volatile, corrosive, highly flammable, explosive, biomedical, infectious, biohazardous, toxic or hazardous material as defined by applicable federal, state or local laws or regulations ("Excluded Waste"); (b) if Contractor finds what reasonably appears to be discarded Excluded Waste, Contractor shall promptly notify the KIB and the producer of the Excluded Waste, if the producer can be readily identified; and (c) title to and liability for any Excluded Waste shall remain with the producer of the Excluded Waste, even if Contractor inadvertently collects or disposes of such Excluded Waste. 2. Customers and the KIB must comply with any description of and/or procedures with respect to removal of contaminants or preparation of recyclable materials as reasonably provided by Contractor. If any customer or the KIB fails to do so, Contractor may decline to collect such materials without being in breach of the contract. Contractor shall not be responsible for and has not made any representation regarding the ultimate recycling of such recyclable materials by any third -party facilities. 3. Notwithstanding anything herein to the contrary, to the extent supplied by Contractor, in the event that a container becomes lost, unsightly, unsanitary, broken, or unserviceable because of the acts or omissions of a customer or the KIB (excluding normal wear and tear), the customer or KIB (as the case may be) will be charged for the resulting repairs or replacement and such amounts will be paid to Contractor upon demand. 4. Any equipment furnished hereunder by Contractor shall remain the property of Contractor; however, the customers and the KIB (as applicable) shall have care, custody and control of the equipment while at the service locations. Customers and the KIB shall not overload (by weight or volume), move or alter the equipment, and shall use the equipment only for its proper and intended purpose. Customers and the KIB must provide unobstructed access to the equipment on the scheduled collection day. The word "equipment" as used in the contract shall mean all containers used for the storage of non -hazardous solid waste. 5. Except for the payment of amounts owed hereunder, neither party hereto shall be liable for its failure to perform or delay in its performance Page 169 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 68 of 93 hereunder due to contingencies beyond its reasonable control including, but not limited to, strikes, riots, compliance with laws or governmental orders, inability to access a container, fires, inclement weather and acts of God, and such failure shall not constitute a breach under the contract. SECTJON 23: DEFJNJTIONS Affiliate means a Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, Contractor. Far the purpose of this definition, "control" has the meaning provided in Rule 144 of the Securities Act of 1993. Affiliate Parent means an Affiliate that, directly or indirectly, through one or more intermediaries, controls Contractor. Annual Report means the Report required under Section 10.03 in form and content satisfactory to KIB. Applicable Laws means any or all of the following enacted, adopted, promulgated, issued, ruled, ordered, determined or otherwise made by any Regulatory Authority that apply to or govern Contract Services or the performance of the Parties' obligations under this Contract: (1) Laws, statutes (2) rules, regulations (3) guidelines, (4) Permits, (5) actions, determinations, orders, or (6) other requirements, including Applicable Law concerning the following: (7) health, (8) safety, (9) fire, (10) labor relations, (11) mitigation monitoring plans, (12} building codes, (13) zoning, (14) non-discrimination, (15) Vehicles: such as: (i) air emissions (smog checks); tires; documentation through maintenance log or otherwise of a safety compliance report; Vehicle highway li g ht in g, flashing and warning lights, clearance I i g h is , a n d warning f l a g s; registration; weight limits; cleaning; enclosure / water- tight beds; (ii) The appropriate class of drivers' licenses issued by the State Department of Motor Vehicles; (iii) any State laws relating to operating equipment construction, safety, and Page 170 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 69 of 93 parking and identification, (16) Carts: such as: a. maintenance and placement of Carts; b. placing Contractor's name and telephone number on Receptacle; (17) Labor: (i) Drug and alcohol testing; (ii) The Occupational Safety and Health Act. (29 U.S.C. §651 et seq.), including the Solid Waste Disposal Facility Criteria promulgated by the U.S. EPA on October 9, 1991 (40 C.F.R., Parts 257 and 258); and corresponding State requirements; (iii) immigration Reform and Control Act of 1986 (PL.99-603); (18) Environmental Protection: (i) CERCLA; (ii) RCRA; (iii) Clean Air Act, (42 U.S.C. §1351 et seq., 42 U.S.C. §7401-7642) and Clean Water Act, and; (iv) corresponding State requirements; (v) Emergency Planning and Community Right to Know Act. (42 U.S.C. § 11001 etseq.); (vi) regulations governing the recovery of ozone -depleting refrigerants during the Disposal of air conditioning or refrigeration equipment, including 40 C.F.R. Part 82; (vii) any wash -down requirements for containers, trucks or facilities, (19) KIB Code, (20) Miscellaneous: (i) Civil Rights Act of 1964 (Sub chapter VI or Chapter 21 of Title 42); (ii) Customer's privacy rights. Reference to Applicable Law includes amendments and supplements to or replacement, restatement or recodification occurring after the Contract Commencement Date. Page 171 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 70 of 93 Base Service Level is described on the Contractor Service Fee Schedule. Bear Cart means a cart designed to be resistant to opening by bears. Breach means Contactor's failure to fully and timely meet any Performance Obligation. Bulky item(s) means any large item of Solid Waste that can be safety lifted by two individuals using a dolly, generated at Residential Premises and discarded at Residential Set -out Sites, such as the following: (1) furniture, including metal desks and storage cabinets, (2) pianos and organs, (3) televisions, (4) large appliances, including washers, driers, refrigerators, freezers, dishwashers and stoves, (5) toys, bikes and dismantled swing sets, (6) lawn mowers and snow blowers with no gas or oil in them, up to 4 auto or pickup tires per Customer each calendar month, with rims removed, (7) any item (other than lumber) that can be cut or broken-down meeting the following requirements: (i) no longer than 4 feet in length, (ii) weighing no more than 70 pounds. Bulky Items does not mean the following: (1) material generated at non -Residential Premises, including commercial business operations, (2) bundled Yard Waste, branches, (3) sod, soil and rock, (4) broken concrete and asphalt, (5) brick, block and stone, (6) railroad ties or similar type of retaining wall timbers, (7) remodeling debris, including shingles, (8) carpeting, (9) sinks, concrete laundry tubs and cast-iron plumbing fixtures, (10) windows and doors, (11) lumber, (12) animal waste, including all excrement from domestic animals and fowl, and all hay, straw or other materials that have been used for animals' or fowls' bedding, (13) liquids, including paint, (14) hazardous waste, including household hazardous waste, (15) fuel oil tanks, (16) any automotive parts (including vehicle batteries and tires). C&D Debris means any Solid Waste discarded in Dumpsters or Roll Off Containers that Contractor must Collect under Section 6.05, such as the following: Page 172 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 71 of 93 (1) bundled Yard Waste, branches, (2) sod, soil and rock, (3) broken concrete and asphalt, (4) brick, block and stone, (5) railroad ties or similar type of retaining wall timbers, (6) remodeling debris, including shingles, (7) carpeting, (8) sinks, concrete laundry tubs and cast-iron plumbing fixtures, (9) windows and doors, (10) lumber. Calendar Year means a period of 12 months of 365 or 366 consecutive days beginning January 1 and ending December 31. (Compare "Contract Year'7 Cardboard Recycling Container means a roll off container or dumpster with a narrow opening or slot on the side of the container that will require cardboard boxes to be first flattened in order to allow the cardboard material to be inserted into the container. Cart means a wheeled receptacle that can be emptied by either semi- or fully - automated vehicles which is used by a customer, including a cart used by a customer in a dwelling unit in a multi -family premises which is not served by dumpster service. Change in Law means the following changes occurring after the Contract Commencement Date: (1) the adoption, promulgation, repeal, modification, amendment or other change in Applicable Law or change in judicial or administrative interpretation thereof occurring, other than: {i) laws with respect to taxes based on or measured by net income, or {ii) any unincorporated business, payroll or Contract taxes levied by any tax governmental authority (other than any taxes levied by KIB that are obligations of Contractor and not merely fees that Contractor must collect on behalf of KIB), or (iii) employment taxes; (2) any order or judgment issued by a Regulatory Authority that binds Contractor or has a material impact on Contract Service: (i) if the order or judgment is not also the result of the willful misconduct or negligent action or inaction of the Party relying thereon or of any third party for whom the Party relying thereon is directly responsible; and (ii) unless excused in writing from so doing by the other Party, the Party relying thereon will make or have made, or will cause or have caused to be made, Reasonable Business Efforts (such as Page 173 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 72 of 93 retaining counsel) Page 174 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 73 of 93 to contest the order or judgment (it being understood that contesting in good faith an order or judgment will not constitute or be construed as a willful misconduct or negligent action of that Party); or (3) the imposition by a Regulatory Authority of any new or different material conditions in connection with the issuance, renewal, or modification of any Permit; or, (4) a Regulatory Authority's (i) failure to issue or renew any Permit, (ii) delay in issuing or renewing any Permit, or (iii) suspension, interruption or termination of, any Permit; provided the failure, delay, suspension or termination is not due to the willful misconduct or negligent action or inaction of the Party relying thereon or any third party for whom the Party relying thereon is directly responsible. Collect, Collection or Collecting other form thereof means pick-up and removal of discarded Solid Waste required under this Contract. Collection Commencement Date means the date described in Section 3.01, on which Contractor shall begin providing certain Customer Collection services. (Compare "Contract Commencement Date ".) Collection Hours means the time during which Contractor may collect solid waste under the KIB Code. Commercial describes Persons (such as Customers) or things (such as Carts, Premises or types of Solid Waste) in the Contract Service Area that are not Residential or Multi- family. Commercial Customer means a Customer who owns or occupies a Commercial Premise. Commercial Premise means each Premise containing that is not a Residential Premise or Multi- family premise, such as businesses. Compactor means a receptacle containing a ram that pushes and compresses waste into a container or bale. Compensatory Damages means "Compensatory Damages" described in Section 15 Contract means this agreement, including all: (1) Sections; (2) Exhibits; and, (3) Other appended documentation, including Attachments, Exhibits and Page 175 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 74 of 93 documentation, which are incorporated in this Contract by reference as if fully set forth herein. Contract Commencement Date means the date on which this Contract is signed by both Contractor and KIB. (Compare "Collection Commencement Date".) Contract Manager means the following: (1) Contractor Representative (2) Contractor's officers (3) Contractor's directors, and (4) any individual in a Position of influence. Contract Service means the MSW Management Services that Contractor must provide for Customers under this Contract, including all Performance Obligations, the future Collection of Recyclables if agreed to by the Parties, Collection from Roll -offs, Customer billing and collection, and Transportation of Collected MSW to the KIB landfill). (Compare WSW Management Services".) Contract Service Area means all land within the boundaries of KIB where Customer's premises can be served by roads. Contract Service Asset Document means a document that encumbers or limits Contractor's interest in a Contract Service Asset or that evidences Contractor 's ownership interest in the Contract Service Asset, such as: (1) lease -purchase agreement, (2) installment purchase agreement, (3) financing statement, mortgage or other instrument establishing a security interest to or by Contractor, (4) if requested by KIB, documents related to Contractor's rights with respect to the Contractor Service Asset, such as Cart warranties, and (5) if requested by KIB, documents related to operation and maintenance of the Contractor Service Asset. Contract Service Assets means all property, both tangible and intangible (such as facility leases or equipment installment purchase agreements) used directly or indirectly in performing Contract Services, including the following: (1) vehicles, (2) receptacles, (3) operation / maintenance equipment and facilities, (4) administrative / office equipment (such as computer hardware and software, telephones/telefax) and offices. Contract Service Asset Inventory means a listing of all Contract Service Assets that includes a description of the type, size, year in service, comments regarding condition (if relevant), and useful service life for each asset. Page 176 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 75 of 93 Contract Service Day means a weekday or Saturday on which Contractor must perform Contract Services, Holidays excepted. (Compare "day" and 'KJB Business Day ") Contract Service Exceptions means: (1) Solid Waste Not Properly Placed in Receptacles: discarded Solid Waste (other than any Bulky Item) that is not placed inside a Receptacle. (2) Any Receptacle that weighs more than limits prescribed on Receptacle's manufacturer warranty or other documentation acceptable to KIB and noted on the Receptacle. (3) Receptacle or Bulky Items Not Placed at Proper Set -out Site: a Receptacle is not discarded at the Set -out Site, or a Bulky Item or excess Refuse is not discarded at the Set -out Site under 4.04. (4) Unsafe Condition: The Set -out Site is not safely accessible to Vehicles or Contractor's employees. (5) Unpermitted Waste or Unsafe Materials: Contractor observes Unpermitted Waste in a Receptacle or at the Set -out Site. (6) Any customer with a past due balance of 90-days or greater will no longer be offered a refuse cart for curbside collection and will instead be billed the rate for residential roll -off container service. Once the customer's balance is paid in full, the customer will again be offered a refuse cart for curbside collection. Contractor means (1) The Person named and signing the signature page of this Contract; (2) Any Transferee approved by KIB pursuant to Section 17; (3) For the purposes of indemnities, Contractor and Contractor's Related Parties. Contractor's actions and Performance Obligations include reference to any Subcontractor's actions under this Contract, as applicable, without specifying in each instance that Contractor must directly take those actions itself, or cause its Subcontractors to take those actions on Contractor's behalf. Contractor Documentation means documentation provided by Contractor to KIB under this Contract in form and content satisfactory to KIB, including those documents set forth in Exhibit 8. Contractor Office means any office and other bases of operation located in KIB. Contractor Office Hours means at least 8:00 a.m. to 5:00 p.m. Monday through Friday (Holidays excepted). Page 177 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 76 of 93 Contractor Payment Obligations means amounts Contactor owes to KIB, including: (1) damages, including Liquidated Damages and Compensatory Damages; (2) reimbursements to KIB, including KIB's Reimbursement Costs; (3) any other amounts provided in this Contract, such as costs of applying to courts for judicial construction of Contract Provisions. Contractor Phone Hours are hours (excepting Holidays) between the following times: (1) 8:00 a.m. and 5:00 p.m., Monday through Friday, Contractor Representative means the individual or individuals authorized by Contractor under Section 18.07 and listed in Contractor Documentation. (Compare 'KIB Representative".) Contractor's Reimbursement Costs means Contractor's Direct Costs plus 10% thereof. (Compare "KIB 'S Reimbursement Costs.) Contractor's Related Parties means Contractor's employees, partners, officers, agents, Subcontractors, attorneys, consultants, licensees, invitees and Affiliates. Contractor's Related Parties are third party beneficiaries of provisions that reference them . (Compare XIB's Related ParliesH.) Contractor Service Fee means the amount listed on the Contractor Service Fee Schedule. Contractor Service Fee Schedule means the schedule set forth at Section 11 .01. Contractor Transition Plan means Contractor Documentation consisting of the plan required by Section 4, which has been approved by KIB. Contract Year means each 12-month period commencing July 1 and ending June 30, or with respect to less than 12-month periods following execution, termination or execution of the Agreement, the portion of that 12-month period. (Compare uca/endar Year".) Criminal Activity means any of the following: (1) fraud or criminal felony offenses in connection with obtaining, attempting to obtain, procuring or performing a public or private agreement related to recyclables, yard waste, construction and demolition debris, garbage, refuse, or any other solid waste or MSW Management Services of any kind (including collection, hauling, transfer, processing, composting or disposal), including this Contract; (2) bribery or attempting to bribe a public officer or employee of a Regulatory Authority; or (3) embezzlement, extortion, racketeering, false claims, false statements, forgery, 75 Page 178 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 77 of 93 falsification or destruction of records, obstruction of justice, knowingly receiving stolen property, theft, or misprision (failure to disclose) of a felony; or (4) unlawful disposal of hazardous, designated or other waste; or (5) violation of the following: (i) securities or antitrust laws (such as laws relating to price-fixing, bid - rigging and sales and market allocation), and (ii) unfair and anti -competitive trade practice laws, including with respect to inflation of waste collection, hauling or disposal fees. Cubic Yard means 46,656 cubic inches. Customer or Customers means a Person who subscribes for Contract Services from Contractor. Customer Complaint Protocol means the protocol under Section 9.03 In form and content satisfactory to KIB. It is Contractor Documentation. Customer Service Subscription is Contractor Documentation consisting of the service order form prescribed by Section 9.08, as approved by KIB. Day means a calendar day. (Compare "KIB Business Day" and "Contract Service Day') Default means 'Default" as defined and described in Section 15. Direct Costs means the sum of the following: (1) payroll costs directly related to the performance, or management or supervision of any obligation under the provisions of this Contract, comprised of compensation and fringe benefits, including vacation, sick leave, holidays, retirement, workers' compensation insurance, federal and state unemployment taxes and all medical and health insurance benefits, plus (2) the costs of materials, services, direct rental costs and supplies, plus (3) travel and subsistence costs, plus (4) the reasonable costs of any payments to Subcontractors (with respect to Contractor) or contractors (with respect to KIB) or third party's necessary to and in connection with Performance Obligations; plus (5) any other cost or expense which is direct or normally associated with a task performed; plus (6) reasonable litigation costs and expenses, including attorneys' fees (including the reasonable value of the services rendered by KIB Counsel's Office) Page 179 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 78 of 93 investigation fees and expert witness fees. Which Direct Costs are substantiated by: (7) a certificate signed by the principal financial officer of Contractor or an authorized representative of KIB, as the case may be: (i) setting forth the amount of the cost and the reason why the cost is properly chargeable to KIB or Contractor, as the case may be, and (ii) stating that the cost is an arm's length and competitive price, if there are competitive prices, for the service or materials supplied; and if KIB or Contractor requests, as the case may be, the additional back-up documentation to substantiate any Direct Cost, including invoices from suppliers, Subcontractors and contractors. Direct Costs excludes profit or return on investment. Disposal or Dispose or other form thereof means final deposition or destruction of Solid Waste. Diversion or Divert means activities that reduce or eliminate the amount of Solid Waste from disposal. Drive-in Service means when the contractor is required to leave the public right-of- way and enter a driveway, private road, or private property. Dumpster means a receptacle for discarded solid waste that has slots to allow pick-up by the forklifts, generally a metal box with lid also referred to as "bin" or "container". Elderly or Handicapped means any Residential Customer who meets the following criteria: (1) has handicapped status recognized by the State Department of Motor Vehicles, or (2) is over 65 years old as evidenced by birth dates on driver's licenses, birth certificates, passports, green cards or other documentation issued by a Regulatory Authority, and (3) provides written representation that he or she is functionally unable to roll his or her Refuse Cart to the curb, and that there is no one else residing in that Customer's premises who is functionally able to roll that Refuse Cart to the curb. Electronic Waste means discarded computers/monitors/equipment, office electronic equipment, entertainment device electronics, mobile phones, television sets, and other materials with electronics that may be Recyclable. Goods or Services means goods or services used in providing Contract Services, including the following: (1) labor, 77 Page 180 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 79 of 93 (2) leases and subleases, (3) equipment, (4) supplies, (5) capital, (6) insurance, if the insurer is an Affiliate, (7) bonds or other credit support if the surety or other provider is an Affiliate; and (8) legal, risk management, general and administrative services. Guarantor means the Person executing the Guaranty. Guaranty means the guaranty in a form approved by KIB, and signed by Guarantor Herein, Hereof, Hereunder and variations mean "in this Contract", "of this Contract", "under this Contract"; "hereinbefor'e' and "hereinafter" mean before and after the Contract Commencement Date, respectively. Holidays means days on which KIB offices are closed for business to the public, comprised on the Contract Commencement Date of the following days: (1) New Year's Day, (2) Martin Luther King Day (3) President's Day (4) Seward's Day (5) Memorial Day, (6) Independence Day, (7) Labor Day, (8) Veteran's Day (9) Thanksgiving Day and the day after Thanksgiving and, (10) Christmas. Including or Include or variations thereof means "including without limitation, "including, but not limited to" and "including, at a minimum". Indemnities or Indemnity or Indemnification or variations thereof means Contractor's obligation to hold KIB harmless, and all such related defenses, indemnities and releases under this Contract. Insurance means the insurance coverages required by Section 13. KIB means the following: (1) the Kodiak Island Borough; (2) any transferee of Kodiak Island Borough; and, (3) for purpose of Indemnities, Kodiak Island Borough's Related Parties. KIB Business Day means any day on which KIB Administration office is open to do business with the public. (Compare contract Service Day.) KIB Code means municipal law of KIB. Page 181 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 80 of 93 KIB Governing Body means KIB Assembly KIB Office Hours means the hours of any KIB Business Day on which KIB Administration office is open to do business with the public. (Compare 'Contractor Office Hours".) KIB Representative means the individual holding the position named by KIB under Section 18.7 (Compare "Contractor Representative".) KIB's Reimbursement Costs means KIB's Direct Costs plus 15%. (Compare "Contractor's Reimbursement Costs".) KIB's Related Parties means KIB's officers, employees, agents, contractors, attorneys, administrators, affiliates, representatives, servants, insurers, heirs, assigns, volunteers and each and every one of them. They are third party beneficiaries of provisions in this Contract that reference them. (Compare "Contractors Related Parties') KIB Landfill means the landfill owned by KIB. Letter of Credit means the letter of credit described m Section 13.03. It is Contractor Documentation. Liabilities and Losses means all of the following (1) liabilities; (2) lawsuits; (3) claims; (4) complaints; (5) causes of action; (6) citations; (7) investigations; (8) demands; (9) clean-up orders; (10) damages (including actual, special, consequential and punitive) whether in contract or in tort, such as natural resource, property and personal injury damages; (11) costs and expenses, including (i) all costs and expenses of litigation, mediation or arbitration, accountant fees, engineer's fees, attorney's fees (whether KIB's or Contractor's staff attorneys or outside attorneys) and other consultant's fees, expert witness fees, and court costs; and, (ii) response remediation and removal costs. (12) losses; (13) debts; (14) liens; (15) mediation, arbitration, legal or administrative proceedings; Page 182 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 81 of 93 (16) interest; (17) fines, charges, penalties; and, (18) other detriments of every nature and description, whether under state or federal law. Liquidated Damages are described in Section 15.01 and Exhibit C. Monthly Meeting means the meeting prescribed by Section 10.03. MSW Management Services means: (1) collection, transportation, storage, transfer, or processing of solid waste; and/or (2) arranging for disposal of solid waste. Multi -family describes Persons (such as Customers) or things (such as Carts or types of Solid Waste) in the Contract Service Area that are not Residential. Multi -family Customer means a Customer who owns or occupies a Multi -Family Premise. Multi -family Premises means premises that are not residential premises (and therefore contains 4 or more dwelling units) including apartment complexes and trailer courts. Non -Collection Notice means a notice in form and substance satisfactory to KIB left by Contractor in event of Contract Service Exceptions, such as Discard of Unpermitted Materials. Notice or Notify or other variation thereof means notice given under Section 20. "Due Notice" or "Notice duly given", refers to Notice given under Section 20. Own, Owner or Ownership or other variation there or has the meaning provided in the constructive ownership provisions of Section 31 B(a) of the Internal Revenue Code of 1986, as in effect on the Contract Commencement Date, except that (1) 10% is substituted for 50% in Section 318(a)(2)(C) and In Section 318(a)(3)(C) thereof; (2) Section 318(a)(5)(C) is disregarded, and (3) ownership interest of less than 10 percent is disregarded and percentage interests is determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. Party and Parties means the following 2 Persons, individually and together: (1) KIB, and (2) Contractor. Performance Assurances means each and every Indemnity, Insurance, Letter of Credit and Guaranty, and any other instrument described in Section 13. Page 183 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 82 of 93 Contract Na. FY2019-25 Performance Obligations means each and every obligation and liability of Contractor under this Contract. Permit means any of the following, of whatever kind and however described that Applicable Law requires Contractor to obtain or maintain with respect to satisfaction of Performance Obligations, as renewed or amended from time to time: (1) permit; (2) registration; (3) order; (4) license (including business license); (5) approval; (6) authorization; (7) consent; and, (8) entitlement Person means any of the following: (1) individual; (2) sole proprietorship (3) firm; (4) association; (5) organization; (6) partnership (whether limited or general); (7) corporation; (8) trust; (9) joint venture; (10) Regulatory Authority' or, (11) any other entity Position of Influence means a position of authority or responsibility to directly or indirectly administer, manage, direct, supervise or oversee Contract Services or this Contract, including the following: (1) Affiliate Parents' officers; (2) Affiliate Parents' directors; (3) individual who reviews or negotiates Contractor's contracts (including this Contract); (4) individual who provides in-house legal services; (5) Affiliate insurer (captive insurance), (6) Guarantor, and (7) Affiliate surety or other Person providing Performance Assurance. Premises means a tract of land with habitable buildings located in the Contract Service Area and safely accessible by Vehicles. Processing means solid waste: Page 184 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 83 of 93 (1) reduction; (2) separation; (3) recovery; (4) conversion; (5) recycling; and, (6) composting. Processing means 'processing" of Solid Waste: it does not mean baling refuse. Promptly or Prompt means as soon as practicable, but not more than two days. Quarter means any of all of the following periods, as the context demands: (1) January, February, March ("1st Quarter"), (2) April, May, June ("2nd Quarter"), (3) July, August, September ("3rd Quarter"), (4) October, November, December ("4th Quarter"). Proposal means the response provided by the Contractor to the Residential and Solid Waste Collection and Recycling Services Request For Proposal. RCRA means the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq. Reasonable Business Efforts means those efforts a reasonably prudent business Person would expend under the same or similar circumstances in the exercise of that Person's business judgment, intending in good faith to take steps calculated to satisfy the obligation which that Person has undertaken to satisfy. Receptacle means any Cart, Dumpster, Roll Off Container or other receptacle (such as bags designed for solid waste discard, but not shopping or grocery bags) for storing discarded Refuse. Records means information relating to Contract Services and other Performance Obligations, including documentation in any form or media, including: (1) ledgers and books of account: (2) invoices, vouchers and canceled checks; (3) logs and correspondence; (4) data and computations; (5) files; (6) reports; (7) drawings, plans and designs (other than those respecting facilities or facility operations that do not involve Collection, such as materials recovery facility plans and specifications); and, {8) photographs. Recyclables means Solid Waste that is recyclable. Page 185 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 84 of 93 Recyclables Processing Facility means the Contractor -operated facility where it processes recyclables for shipment to markets. Recycle, Recycling or Recyclable means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become solid waste and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the market place. Recycled Content Procurement Policy means KIB'S current buy -recycled policy, if any. Recycling or Recycling Services means all activities related to managing Recyclables. Refuse means Solid Waste comprised of rubbish, trash and garbage, excluding any Bulky Item that Contractor Diverts. Regularly Scheduled Collection Day(s) means the same day(s) each week on which Contractor provides Collection to a Customer. Regulatory Authority means each of the following that has jurisdiction over either Party or this Contract: (1) the United States; (2) the State of Alaska and other states; (3) KIB; (4) governmental authorities, agencies and districts; (5) governmental boards and commissions; (6) federal, state and local courts; and, (7) any other municipal, governmental or public bodies. Report means any report that Contractor is obligated to provide under this Contract, including Section 10. Residential describes Persons (such as Premises or types of Solid Waste) in the related to Residential Premises. Customers) or things (such as Carts, Contract Service Area that reside or are Residential Customer means a Customer who owns or occupies a Residential Premise. Residential Premise means a premises meeting both of the following conditions: (1) It contains one, two or three dwelling unit(s); and, (2) Each dwelling unit is occupied by related individuals or by 5 or fewer unrelated individuals. Roll Off Container means an open -topped rectangular container for storage, collection and transport of Solid Waste that are rolled on and off flatbed collection vehicles via winches or reeving cylinders (hooks). Rollout Service means taking the following actions by manual means: Page 186 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 85 of 93 (1) dismounting from the Collection Vehicle, (2) moving a Receptacle more than five feet (5') from its storage location indicated on that Customer's Service Subscription (such as within enclosures or by garages) to the Collection Vehicle for emptying, and (3) returning the Receptacle to its storage location. Self -Haul a customer who notifies the Contractor in writing that they intent to personally store, collect, transport, and dispose of Solid Waste generated on that person's Premises. These customers will be charged by the Contractor a Service Fee commensurate with the weekly roll cart fee, based upon a maximum of 190 gallons of Solid Waste that the self -haul (commercial or residential) Customer discards at the Landfill or a Roll Off container. Senior Discount means the amount by which the Contractor Service Fee is reduced from time to time by KIB for providing Contract Service to any Residential Customer who is over 65 years old as evidenced to KIB by birth dates on driver's licenses, birth certificates, passports, green cards or other documentation issued by a Regulatory Authority. Service Day means a weekday or Saturday, Holidays excepted, when Contractor must provide Contract Service. (Compare "KIB Business Day".) Set -out Site means the location agreed to by Contractor and the Customer and indicated on the Customer Service Subscription or required by KIB, where Customer must place its Carts for Collection, including: (1) Residential curb: on the curb in front of Residential Premises; in the street immediately adjacent to that curb or; if there is no curb, at the edge of Customer's property abutting the street, unless Contractor provides Roll -out Service or Up -the- Drive Service; (2) Roll -out Service: at the storage location agreed upon between a Residential Customer and Contractor and included on the Customer Service Subscription; and. (3) Up -the -Drive Collection: at the storage location agreed upon between a Residential Customer and Contractor. Solid waste means "municipal solid waste" defined under AS 46 .03.900. Solid Waste means "municipal solid waste" discarded in Receptacles, other than Unpermitted Waste, located in the Contract Service Area that Contract Must Collect, including: (1) Refuse; (2) Recyclables; (3) Bulky Items; and, (4) C&D Debris. Page 187 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 86 of 93 Solid Waste Management Facility means the following facilities, individual and together, as the context demands: (1) KIB Landfill; and, (2) any other facility that handles Solid Waste and that is approved by KIB. State means the State of Alaska. Subcontract means any arrangement, formal or informal, written or merely in practice, between Contractor and a Subcontractor, including: (1) contracts or agreements; (2) letters or memorandum of understanding or intent; and, (3) subscription or purchase orders. Subcontractor means anyone Person that provides Goods or Services related to Collection, transportation or storage of Solid Waste or related to Service Assets, including their operation, maintenance and repair, to or on behalf of Contractor. Such as means for example. Term of this Contract means the period beginning on the Contract Commencement Date and ending on the Termination Date. Termination Date means the date this Contract expires or is earlier terminated. Termination Events are such instances as described in Section 16.01. Ton (or Tonnage) means a short ton of 2,000 pounds avoirdupois. Transfer means any of the following: (1) selling, exchanging or otherwise transferring Ownership or control of Contractor (through sale, exchange or other transfer of outstanding stock, partnership shares, equity interest or otherwise); (2) issuing new stock or selling, exchanging or otherwise transferring 20% or more of the then outstanding common stock of, or partnership shares or equity interest in, Contractor; (3) any dissolution, reorganization, consolidation, merger, re -capitalization, stock issuance or re -issuance, voting trust, pooling agreement, escrow arrangement, liquidation, buy-out or other transaction which results in a change of Ownership or control of Contractor: (4) any assignment by operation of law, including insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment of an execution, being levied against Contractor, appointment of a receiver Page 188 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 87 of 93 taking possession of any of Contractor's tangible or intangible property (5) any sale or other transfer of 50% or more of the value of assets of Contractor except for sales or transfers to parents, grandparents, siblings, children, and grandchildren of persons having a shareholder, partnership or other equity interest in Contractor on the Contract Commencement Date ("Immediate Family") or trust created primarily to benefit members of the Immediate Family; (6) substitution by a surety company providing any performance bond of another Person for Collector to perform Contract Services; and (7) assumption of any of Contractor's rights under this Contract, or (8) assumption by, delegation to or takeover of any Performance Obligations or any other Contractor's duties or responsibilities under this Contract by any Person other than Contractor, whether by Subcontract, unless approved by KIB pursuant to the requirements of this Contract, or any other mechanism. (9) any combination of the forgoing (whether or not in related or contemporaneous transactions), without consideration, which has the effect of any transfer or change of Ownership or control of Contractor. For the purpose of this definition, "control" has the meaning provided in Rule 144 of the Securities Act of 1993 Transition Plan means the Contractor Documentation consisting of the plan submitted by the Contractor pursuant to Section 4, as approved by KIB. Uncontrollable Circumstance(s) means any of the following events: (1) any natural disaster such as landslide, lightning, earthquake, fire, flood, tsunami, (other than reasonably anticipated weather conditions for the geographic area of KIB, such as wind, rain or snow); (2) sabotage, explosion; (3) Insurrection, riot or civil disturbance, war or other emergency affecting KIB declared by the President of the United Sates or Congress of the United States, the State Governor or KIB Governing Body; (4) failure of public agency or private utility to provide and maintain water, power or service in KIB or at Contractor's operations and maintenance yard or administrative offices; (5) other catastrophic events beyond the reasonable control of that Party and not the result of willful or negligent action or inaction of that Party (other than the contesting in good faith or the failure in good faith to contest that action or inaction}, which materially and adversely affects the ability of either Party to perform any obligation under this Contract despite that Party's exercise of due diligence. Uncontrollable Circumstances excludes, without limitation: Page 189 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 88 of 93 (1) Breach, Default or Contractor's financial inability to satisfy its Performance Obligations; (2) strikes, work stoppages or other labor disputes or disturbances of any Subcontractor or Contractor's inability to hire adequate numbers of personnel who are competent and skilled in the work to which they are assigned; (3) failure of Contractor to obtain Permits and patents, licenses, or trademarks necessary to perform Contract Services; and (4) the failure of any Contract Service Asset to function under any warranties, unless caused by Uncontrollable Circumstances. Unpermitted Waste means materials that cannot be disposed of in the KIB Landfill under Applicable Law of the State or K18 rules. Unpermitted Waste Screening Protocol is Contractor Documentation cons1stmg of the protocol that Contractor has submitted pursuant to Section 9.03, which has been approved by KIB. Vehicle means any truck used to provide Contract Services. Violation means any noncompliance with Applicable Law as evidenced by written notice, assessment or determination of any Regulatory Authority to Contractor, whether or not a fine or penalty is included, assessed, levied or attached. Page 190 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 89 of 93 SECTION 24: EXECUTION 24.01 Execution in Counterparts. This Contract may be signed in any number of original counterparts. All counterparts will constitute but one and the same Contract. 24.02 Authority to Execute. a. KIB. KIB warrants that its officers listed below have been duly authorized to execute this Contract on its behalf b. Contractor. Contractor warrants that the individuals listed below have Contractor: WASTE CONNECTIONS OF ALASKA, INC. By: Name Title: Date: ATTEST By: Name: Title: Date: The Borough: KODIAK ISLAND BOROUGH By: Name: Title: Date: APPROVED AS TO FORM By: Name: Title: Date: ATTEST: By: _ Name: Title:_ Date Page 191 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 90 of 93 EXHIBIT A REQUEST FOR PROPOSAL Page 192 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 91 of 93 EXHIBIT B LIQUIDATED DAMAGES 1. Liquidated Damages. Pursuant to Section 15.01 of the Exclusive Service Contract "Contract") executed by and between the Kodiak Island Borough ("KIB") and (Contractor), Contractor shall be liable to KIB for liquidated damages in the amount of $75.00 for any first incident, $100.00 for any second incident within 12 months, and $200.00 for every similar incident thereafter within 12 months, should KIB determine that Contractor has committed certain breaches of its Performance Obligations. KIB's assessment of Liquidated Damages does not preclude KIB from enforcing the KIB Code for corresponding Violations. 2. Breaches for Which Liquidated Damages May Be Assessed. a. Failure to provide Contract Services to any Customer, including missed pickups; b. Failure to return emptied Containers to its Set -out site; c. Failure to deliver any collected Solid Waste to a disposal facility approved by KIB; d. Failure to maintain Records, including but not limited to Contractor's failure to record a complaint; e. Failure to timely respond to and resolve a customer complaint; f. Failure to deliver, repair, replace or pick up Carts, Dumpsters or Roll -offs; g. Failure to observe Collection schedule; h. Failure to observe Contractor's Office Hours; I. Failure to clean up litter, spills, and leaks; j. Transportation of collected waste and recyclables in uncovered Collection Vehicles; k. Failure to provide KIB with timely access to Records; I. Failure to display its telephone number on Vehicles; m. Failure to return KIB telephone calls; n. Failure to meet with KIB; Page 193 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2.e. Contract FY2019-25 As Amended March 2021 Page 92 of 93 o. Failure to remedy any violation of KIB code within five (5) days of any Notice of Violation; p. Failure to submit Reports, or any other required documentation, to KIB; q. Failure to charge Customers consistent with the Contractor Service Fee Schedule; r. Engaging in discourteous behavior toward Customers; Page 194 of 232 Solid Waste Contract Revisions Discussion AGENDA ITEM #2. e. Contract FY2019-25 As Amended March 2021 Page 93 of 93 EXHIBIT C CONTRACTOR'S PROPOSAL DOCUMENTS Page 195 of 232 Solid Waste Contract Revisions Discussion y Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9301 TO: Kodiak Island Borough Assembly FROM: Aimee Williams, Borough Manager RE: Manager's Report, October 31, 2024 Manager's Department Meetings - • AML Property Tax Working Group • Fisheries Workgroup • Architectural Review Board • KIBSD / KIB Staff meeting • KIBSD Superintendent • CEO KANA • Hospital Administrator • Alaska Municipal Manager's Association AMLJIA / APEI Merger - • The Alaska Municipal League Joint Insurance Association (AMLJIA) and Alaska Public Entity Insurance (APEI) Boards have both voted to continue with the merger to create a new community pool. The new pool will be named Alaska Public Risk Alliance (APRA) and would bring together the two self-insurance programs that have been operating in Alaska for the past forty years. • There is a website set up to find out more information here — https:Halaskarisk.org. • Kodiak Island Borough will be given the chance to vote for or against the merger as a current member of AMLJIA. Our Risk Manager / Finance Director will be placing the vote for KIB. • If approved by both memberships on November 14, 2024, the merger would become effective on July 1, 2025. Current Priorities — • RFP Templates • Service District Contracts starting FY26 • Project Priorities for Summer 2025 Page 196 of 232 Alaska Supreme Court Case — Oral arguments are scheduled during the first week of December. Assessing Department Director and Manager are scheduled to be present for our case and Nome's case. Chamber of Commerce Annual Dinner — Mayor Arndt and I attended the annual dinner on Saturday, October 26, 2024. Guest speakers were Senator Stevens and the Kodiak Economic Development Corporation Board President, Karl Hertz. Congrats to all the award winners that evening. AML Annual Conference — • Registration is now open for the December 11 th — 13th conference. • Open board seats include — o Director, District 2 — Kodiak / PWS o Director, Boroughs o NACo Representative Current Recruitments — • Associate Planner • Fiscal Technician Community Development Hazard Mitigation Advanced Assistance Grant - Hydrology and Hydraulics Study of Russian River and Sargent Creek - River Focus, Inc. staff will be in the borough for a site investigation from Tuesday, November 4th, through Thursday, November 6th. They will survey the streams and conduct on -site analysis. In addition, they will be available to meet with residents that are impacted by the stream flooding. Assessing - Field Work — Assessing staff will be doing in -person field inspections in Monashka, Bells Flats, Chiniak, and Pasagshak. Properties seen as of October 29, 2024 — 1015 (90% Complete) Senior Citizen / Disable Veteran exemptions — Two applicants remain to be determined by the PFD and will be processed when the information becomes available. Village travel dates for SC/DV exemptions: • Akhiok, Karluk, & Larsen Bay - Nov. 18, (Back up Nov. 19) • Old Harbor — Nov. 21 (Back up- Jan. 7) • Ouzinkie — Nov. 22 (Back up- Jan. 8) • Port Lions — Nov. 25 (Back up- Jan. 9) Page 197 of 232 GENDA ITEM #4. There are no seats available for the original dates. Seema will let the Assembly know if they have to use a backup date and there are seats available on the alternate date. Exemptions — • One new exemption application was processed and sent out 10/10/24. They have appealed to the Assembly sitting as the Board of Equalization. • One applicant participated in a reconsideration on 9/24/24, KIB responded on 10/11 /24. They have 30 days to appeal. • One applicant appealed their reconsideration to Superior Court on 10/11/24. Tyler Conversion — Assessing continues to run queries for cleanup and is preparing for file transfer. Apex Sketch software is being downloaded onto computers by IT. Assessing will have to redraw all sketches. Engineering and Facilities Architectural and Engineering Services RFP — Architectural Review Board (ARB) has met and reviewed the submissions. An agenda item will be created to provide the information to the assembly and the ARB recommendation for award consideration. Borough Office Lift Station Issues - KIB and contractor staff are working diligently to complete the required repairs. Correct pumps and materials are on site and installation is nearing completion. A file will be created to document the installed parts and detail the updated configuration. Borough Building Boiler Installation — RSA Mechanical Engineer, Colin Thompson has performed the scheduled site visit to review multiple capital projects. A complete review of the previously noted discrepancies has been inspected for completion. Several items noted remain noncompliant. A written trip visit as well as updated punch list is anticipated. KFRC — • GSA representative has stated the revised contract amount for required water testing will be completed soon. The due date for sampling and receipt of data will be extended to reflect the delay. • Additional electrical circuits have been priced for GSA consideration to accommodate additional chillers for NOAA. Project to be funded on the next fiscal year's budget. Fume hood job was reported as complete. Site inspection with the mechanical engineer has yielded several deficiencies. No redlines or completion paperwork have been provided. A punch list for completion will be generated. Page 198 of 232 Landfill — • Staff is continuing to investigate the Compliance Order by Consent (COBC) associated with the storm water violations. A well installation RFP is being drafted to provide more insight. • Baler building concrete floor contractor to be on site October 31, 2024. Equipment will be staged, and work is scheduled to begin November 4, 2024. • Baler Facility remains closed. Baler rebuild is going well. Gatherer will be installed by the end of the current week. Completion of the baler rebuild will occur prior to the cure time for the concrete floor. Strapper consultant is anticipated to be on site in November 24. A dumpster has been provided for residential customers that bring waste to the Landfill. Commercial hauler will be loose filling at the current landfill operating face. • There has been an increase in bear activity at roll off container locations. Reminder to residents to CLOSE the doors when done disposing of their trash. Leachate Treatment Plant — • Staff has received and is testing three alternate polymer samples. Third sample is currently being tested and evaluated. First two polymers were provided no significant impact. • Pretreatment Upgrade Project — Contractor is scheduled to be in town early November. Pump switch out to occur along with punch list items. • Staff has contacted a local vendor to perform the installation of the required seismic joint cover. The prime contractor has been provided the appropriate contact information to ensure the completion of the building joint installation. KIBSD — Peterson School Roof — • The final Johns/Manville inspection was held on October 28 and 29. The warranty inspection was completed, required alterations have been made and the 20-year Peak Advantage warranty has been received. Maintenance requirements will be provided to the KIBSD. • On October 29th, a site visit was performed at Peterson Elementary specific to the mechanical systems including mechanical penetrations and newly installed HVAC equipment. Several discrepancies were noted. The changes required have been verbally discussed with the contractor. Awaiting a written trip report and list of items that need to be taken care of. On October 29th, due to the sustained high wind event, several sections of flashing failed on the front face of the facility. Friend Contractors responded to our report of damage. A discussion will be held specific to the required repairs associated with the warranty. A site visit has been conducted on 10/30 to further investigate the failure of the roof manufacturer's recommended installation method. Page 199 of 232 Snow Removal and Ice Control — • A single compliant proposal has been received. This proposal and award recommendation will be reviewed tonight. AIM Maintenance is the recommended contractor for consideration and approval. • Staff has advertised the KIB Facilities Snow and Ice Control contract and that is anticipated with an anticipated award on November 21 st Regular Assembly meeting. Finance Department Property Taxes — For those that made a timely first half payment, the remaining half payment is due on or before November 15th to avoid additional penalties and interest. FY2024 Audit — Staff is working on the Managements Discussion & Analysis and Statistical sections. Property Assessment and Taxation Implementation Project — Staff is continuing to meet regularly with Tyler to work on reviewing mapping requirements. As specific data mapping is completed, limited data exports have enabled staff to view data in the test environment. Current mapping results are focused on assessing data. Staff is continuing to work on data cleanup and verification. Go -live date is expected to be June 25, 2025. Information Technolo Security - 1. Security Audit — a. Project timeline: i. Client Assistance Responses Due — Friday, September 27th - Completed. ii. Fieldwork - Offsite — Monday, October 7 — Friday, November 8th 1. We have connected the Consultant laptop to our network and its currently scanning our network and systems. 2. IT Staff meetings with Auditors are still ongoing, wireless security is latest one. iii. Draft Management Report — Friday, November 15th iv. Remediation Roadmap — TBD 1. IT has completed the implementation of two factor authentication in our Microsoft 365 environment. 2. IT is testing LAPS which is a password security technology to manage local administrator passwords. 3. "KIB-Staff' secure wireless network for KIB laptops has been completed and we are assisting laptop users with accessing it. Page 200 of 232 4. The IT department is developing an approval workflow in our helpdesk software to streamline and document the process for approving user access requests, including the creation and modification of user accounts, email access, and other IT -related permissions. Hardware - 1. Assembly laptops are available for pickup. Need to meet with them individually to migrate files and settings. Two laptops remaining to be deployed. 2. Working with E&F at the LTP to upgrade their Rockwell Automation SCADA monitoring pc equipment. i. SCADA processor upgrade completed 2. SCADA display has arrived. IT will migrate and upgrade the SCADA operating system and hardware. 3. IT is applying asset tags to our IT assets. Software — 1. Laserfiche: a. IT is working with the Deputy Clerk: i. Date formats and data field updates. ii. Record schedule updates for all departments. iii. Workflow creation and updating existing workflows. iv. Training of KIB staff on using Laserfiche. 2. Microsoft System Center Operations Manager (SCOM) i. IT is testing an endpoint monitoring software solution to be proactive with identifying issues with our servers and workstations. 3. IT is working with Long Technologies - HVAC contractor to install and upgrade our HVAC systems at KFRC and KIB buildings. Server platform has been deployed, and Long is now installing and configuring the software remotely. GIS - 1. Working with Assessing on updating property lease information 2. Working on migrating on premise map imagery to the ESRI cloud, which would reduce KIB on premise requirements for hosting online KIB maps. 3. Property ID reviews ongoing, roughly 179 of 7800 remaining. Bayside Fire Department Personnel Activity / Professional Development / Training — • With the long-term non -department storage removed from the 2-bay detached storage garage, members have worked to organize the new and tidy space to directly support our training mission on the drill ground. Thanks to Shane from E&F working to get the Toyo heater out for repair and reinstalled and working well just in time for late fall / winter! Page 201 of 232 The BFD Community Open House was held on Saturday, October 26, 2024, from 11AM — 3PM and it was a huge success. Initial counts show an almost doubling of attendance from last year!!! Thank you to our Kodiak Community for coming out and supporting our risk reduction / education efforts! Thank you to the Alaska State Troopers (Sgt. Tim Collins & Trooper Ben Turner) Alaska State Parks (Ben Shryock & Nicole Budd) Kodiak City FD & KISAR. And of course, to all the members and families of BFD who made it so successful! • Hard work continues for all members involved in the Firefighter I & II program. Members finished up Chapters 8 & 9, Forcible Entry and Ladders. They also spent long nights practicing old and new skills. Next up — Hose and Fire Extinguishment. Campus Upgrades and Maintenance — The BFD is still working to secure the Drill ground adjacent to the Fire Station. Fire Line tape has been placed to remind the public of areas that are off limits to the public (safety and security). Fencing and signage which has been reclaimed from behind the garage building will be erected to form a more permanent barrier. This will ensure no member of the public is inadvertently injured on the drill ground on various fire & rescue training props / structures, and assemblies. The addition of the safety barriers will not affect access to the dumpsters or dumpster area. Stuff to Just Make You Happy — BFD's own Lt. Shelby Bacus organizing a Dia De Los Muertos celebration on Saturday November 2"d for members and their families. There will be lots of holiday favorites, including sugar skulls (kids can make their own) Mexican Hot Chocolate, & Sopa Azteca. Young and Old will also be able to watch "Coco" while they celebrate and honor their loved ones no longer with us. There will even be an Ofrenda to place pictures of family and pets to honor and remember. Thank you Lt. Bacus!!! Reminders for Budget Discussions for FY26 1. Non-profit use of opioid settlement funds 2. Accommodations tax — Breakdown / Amount in Fund / Regulations about using those funds 3. Consideration of adding more to the junk vehicle removal line item Page 202 of 232 AGENDA ITEM 05_a_ ELECTIONS UPDATE ✓ The local election contest period has ended on Monday, October 4 ✓ For those who are leaving town, absentee voting is still ongoing until Monday, November 4. Absentee voting is from 10 a.m. to 4 p.m. ✓ So far, we have had more than five hundred voters who have voted absentee. ✓ The General Election will be held on Tuesday, November 5. Polls will be open from 7 a.m. to 8 p.m. on Election Day. ✓ The Clerk's Office staff will be actively engaged on Election day, providing assistance throughout the electoral process. RECORDS UPDATE ✓ Implemented the new code allowing Records Extension for those records deemed to have administrative value. We will be presenting you a contracts destruction list on November 21. ✓ There are no outstanding records requests. ASSEMBLY AGENDA ITEM REQUESTS ✓ See tracking spreadsheet attached. FY2025 BUDGETS AS OF SEPTEMBER 30, 2024 ✓ Legislative Budget— FY2025 at 31 % ✓ Clerk's Office Budget — FY2025 at 26% LEAVE — We have a couple of Assembly members already planned to be out the next few weeks. Please keep me in the loop if you are planning to take time off so we can predetermine quorum for upcoming meetings. Reporting KIBC 2.25.070 No member of the Assembly may absent himself from any regular or special meetings of the assembly except for good cause. An assembly member who Absences is unable to attend a meeting SHALL ADVISE THE CLERK OR THE MAYOR of the contemplated absence. BOARD APPLICAI I ✓ Joseph P. Delgado, Planning and Zoning City Seat (no current vacancy on the board) ✓ Notice of Vacancies - Applications are being accepted for the following Board, Committee, and Commission seats that are currently vacant: o Architectural and Engineering Review Board/Building Code Board of Appeals - 1 seat o Citizens Board of Equalization - 1 Alternate Seat o Kodiak Fisheries Development Association - Borough Appointees - Crab Harvester - 1 Seat o Parks and Recreation Committee - 1 Seat o Solid Waste Advisory Board - 1 At Large Seat and 1 Retail Business Representative Seat o Service Area Boards ■ Bayview Service Area Board - 2 Seats ■ Monashka Bay Road Service Area - 3 Seats Page 1 of 3 Page 203 of 232 OCTOBER 31, 2024 ■ Woodland Acres Streetlight Service Area Board - 3 Seats STAFF TRAINING ✓ Quarterly Safety Training for Borough Employees ✓ December 7-11, Alaska Association of Municipal Clerks Conference Attendees: Clerk, Deputy Clerk, and Assistant Clerk MISCELLANEOUS ✓ We have received an appeal from the Alutiiq Heritage Foundation. You will seat as the Borough Board of Equalization to review this appeal. Please be careful not to expose yourself to exparte contact. ✓ Liquor Licenses o B&B Renewal o Island Hotels — transfer of location o Sixteen (16) liquor licenses are being reviewed as they enter biennial license period. Once we are done with our investigation, we will present those that the Borough may need to lodge a protest for the continued operation of a license. ✓ Clerk working with the attorney on revising the liquor licenses ordinance. ✓ The deadline to reapply for the different Borough boards and committees seats is November 15. 1 would like to encourage all incumbents to reapply. ✓ The Appointment of Assembly Representatives to Boards & Commission was emailed to you and it is also attached to this report. They are due back to me by Wednesday, October 23. ✓ Borough Offices will be closed November 11 in observance of the Veterans Day Holiday and also on November 28-29 for the Thanksgiving Holiday UPCOMING MEETINGS ✓ November 7, Regular Meeting ✓ November 14, Work Session ✓ November 21, Regular Meeting PLEASE ADVISE ASAP IF YOU WISH TO TRAVEL TO THE ANNUAL AML CONFERENCE IN DECEMBER. Page 2 of 3 Page 204 of 232 MISCELLANEOUS EVENTS/CALENDAR Dates Events Location 2024 October 24-26 CIRCAC Board Meeting Kenai November 5 Prince William Sound RCAC December 5-6 CIRCAC Advisory Council Board Meeting Anchorage December 9-13 Annual AML Local Government Conference Anchorage 2025 January 23-24 Prince William Sound RCAC Board Meeting Anchorage February 18-20 2025 AML Winter Legislative Conference Juneau February 2025 Federal Lobbying For Assembly Discussion March 1-4 2025 NACo Legislative Conference Washington, D.C. March 2025 Southwest Alaska Municipal Conference Anchorage April 2025 AML Spring Conference Anchorage May 1-2 Prince William Sound RCAC Board Meeting Valdez May 21-23 NACo WIR Conference Rapid City, S.D. Jul 11-14 2025 NACo Annual Conference & Exposition Philadelphia, PA September 18- 19 AML Summer Board meeting Cordova Page 3 of 3 Page 205 of 232 AGENDA ITEM REQUEST FORMS TRACKING LIST No. Description/Requestor Requested by Submitted 60 day Completed on Comments on deadline 3 Opening Borough Owned Lands To Sharratt 07120123 NA 04111124 ws Will continue to come up as Auction/Lands Discussion a discussion 5 Limiting Airb&B Rentals As Long -Term Sharratt 08110123 N/A 2129124 ws Housing Solutions Discussed on 02/29/2024 11114124 ws 6 Transfer Stations & Requirements For Sharratt 2129124 NA 2129124 ws SWAB should take a look at Recycling this. Make it current and brinc back recommendation 7 Land Enhancement To Local Buyers Sharratt 08/17/23 N/A 10 Service Area Maintenance & Snow . Griffin 08121123 NA Removal Contracts I 11107124 nn 13 Proposed Code Revisions To KIBC Sharratt 02101124 N/A 02108124 ws Direction given to defer this 2.125.030 And KIBC 2.125.040 to the ARB/Emailed to E&F Architectural/Engineering Review Board on 02109124; Follow-up email sent on 10131124 ws 14 Investment Strategy Grim 06106124 Waived 09112124 Will continue to come up as Preferred Meeting Date: 09112124 a discussion. 12117124 ws 17 Liquor License Code Revision Arndt/Sharratt 06125124 Waived Ordinance drafted by by Mayor Schedule Attorney. beginning of 2025 18 Policy Decisions On The Old Mental Sharratt 07125124 09/23/24 09/26/24 ws Health Buildings 10131124 ws 21 Real And Personal Property Code Turner/Ames 09119124 11108124 10131124 ws Change, KIBC 3. 35.030 A. 6 22 Amend Code To Require Whiteside/Sharratt 10115124 12114124 Reconsideration Filers To Provide 11114124 ws Reasons At The Time Of Filing NA— requests were submitted before the adoption of new code which established a 60-day deadline COMPLETED No. Description/Requestor Requested by Submitted 60 day Completed on Comments on deadline 1 Debate Time Limits Turner 07/20/23 NA 12121123 Ordinance adopted and then 01104124 vetoed 01118124 by the Mayor 2 K/BC 3.35.030(D) Waiver May Only Be Tumer 07/20/23 Granted For Year 4 Change Of Agenda — Citizens Turner 08/03/23 NA 1V21123 Per Mayor— leave format Comments — In Room/On Phone as -is 8 Hospital Facilities Repair And Renewal Gin 08/21/23 NA 2129124 9 Manager's Spending Authority Grin 08/21/23 NA 01/18124 rm Ordinance No. FY2024-13 Adopted Adopted —Amt. changed from 25K to 50K 11 Remove Development Of CIP From P&Z Smiley 10/19/23 NA 12 Discussion Of Changing The Transient SharraYMiteside 11109123 NA 12114123 ws And All -Inclusive Package Accommodations Tax From Five Percent To Twelve Percent 15 Land Disposal For Residential Whiteside 06111124 08110124 07111124 ws Development 16 2/3 Vote — Ordinance Amendment Amdt/Tumer 05/25/24 08/24/24 08101124 ►m Adopted on 09104124 19 Legal Opinion — Conflict Of Interest Amdt/Turner 07/29/24 NA 08101124 Related to nonprofit funding Fr Letter To AMCO Revoking Turner 08/15/24 10115124 08/29/24 ws Assembly approved a letter Pekin Sizzler License 1 09/05/24 rm to send to ABC Board NA— requests were submitted before the adoption of new code which established a 60-day deadline OPR A aska, OCEAN RESTORATION �__Ala�ska Seafood In sk Fo*he Presentation Sept. 024 Proven immediate and sustainable re'gtoration of Alaska's ocean fish- and sealife t " _ San Francisco, Kenai, Kediak ©Sept. 2024' w r.i OPR Alaska Brings Back The Fish & Fights Climate Change Executive Summary • OPR Alaska, Inc. proven Nature -Based ocean restoration will deliver hundreds of millions of additional fish into Alaska's nets and onto the nation's tables . • We will create a new multi -billion -dollar Alaskan natural ocean resource - specified in the Paris Climate Agreement as 'Blue Carbon' • Imagine OPR Alaska's 2025-2028 ocean restoration resource development project as being like the first years of production of North Slope oil • 'Nature -Based' ocean restoration is being mandated around the world, importantly by the EU Nature Restoration law which provides €8.3 Billion per year ($9.2 Billion), also by the US Congress Ocean Restoration Act presently on the floor of the House. • Safe, sustainable, and successful with long term business plan: Providing the state with hundreds of millions of dollars in sustainable new resource revenues, jobs, abundant nutritious fish, and more... • Initial 3-yr. R&D phase will also be an environmental and socio-economic study OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force CD 0 N W N International Legislation Member States will implement restoration of at least 20% of the EU's land areas and 20% of its seas by 2030 increasing through 2050. €8.3 Billion per year approved! European ®— Commission I Energy, Climate change, Environment Home > News > Nature Restoration Law enters into force ® EN Q Search PRESS RELEASE 115 August 2024 I Directorate -General for Environment 6 min read Degraded ecosystems to be restored across Europe as Nature Restoration Law enters into force The regulation sets binding targets to restore degraded ecosystems, particularly those with the most potential to capture and store carbon and to prevent and reduce the impact of natural disasters. OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force v 0 N W N Federal Legislation US Ocean Restoration Act Congressman Buddy Carter, 118Tx CONGRESS 2D SESSION H. 17797 Rep. Georgia, avid ocean fisherman is the sponsor of To direct the Secretary of Energy to establish a pilot program on ocean fertilization and restoration research and development, and for other purposes. this act which intends to stimulate private sector joint funding of vitally needed ocean restoration. The matching funds Act starts with federal funding of $33 million per year, thus stimulating joint public private ocean restoration worth $66 million per year. IN THE HOUSE OF REPRESENTATIVES MARCH 22, 2024 Mr. CARTER of Georgia introduced the following bill; which was referred to the Committee on Science, Space, and Technology A BILL To direct the Secretary of Energy to establish a pilot program on ocean fertilization and restoration research and development, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of nerica in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Ocean Restoration Research and Development Act". OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force State Legislation July 315t 2024 Governor Dunleavy Signed HB-50 creating a regulatory framework for carbon capture, utilization and storage (CCUS). HOUSE BILL --NO. 50 IN THE LEGISLATURE OF THE STATE OF AL ASKA THIRTY-THIRD LEGISL ATL-RE - FIRST SESSION - BY THE HOUSE RULES CONINIITTEE BY REQUEST OF THE GOVERNOR Introduced: I"Z'"2; Referred: Resources. Finance A BILL FOR AN ACT ENTITLED I "An Act relating to the geologic storage of carbon dioxide; and providing for an With slight 4 amendment this bill will bring back billions of dollars of seafood! effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF AL ASIL.k: "- Section 1. SHORT TITLE. This Act may be kno-wti as the Carbon Capture, Utilization, and Storage Act. ", Sec. 2. AS 31.05-027 is amended to read: Sec. 31.05.02?. Land subject to commission's authority-. The authorit,- of the commission applies to all land in the state lat,-fully subject to its police powers_ including land of the United States and land subject to the jurisdiction of the United States_ Tile authority of the commission further applies to all land included in a OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force G� 50 Years of research and counting.. NASA honors just one person on their website On The Shoulders Of Giants tells the decades long history of CD 0 ocean N W N restoration OPR World, Inc. (D 2024 In the early 1970s, Prof. John Martin reported that ocean plankton had been disappearing. As a result, the US government decided to build and put into orbit in 1978 the first ocean plankton satellite. Results: Following a decade of at -sea, laboratory, and satellite observation, Martin put forth his Iron Hypothesis. It stated, 'the emerging crisis of global warming can be solved through restoring the oceans' phytoplankton. Oceans regulate the climate and plankton rules the ocean.' Presentation to Alaska Seafood Task Force Click to read NASA memorial to John, "On Shoulders of Giants" Webpage. m 0 n m 90 a) v N_ A O_ N W N OPR Alaska View Of Alaska's Ocean Pastures, 'Eddies' OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force v 0 N W N OPR Mimics Nature,, Replenishes Missing Dust Natural sources of mineral dust commonly nourish Ocean Pastures, but natural dust sources are both unpredictable and, due to anthropogenic CO2, in great decline. Alaskan volcano, Kasatochi, erupted in August 2008; its This natural dust falling in the South Pacific originated mineral -rich ash dusted and restored Gulf of Alaska salmon when drought in Australia dried up all the grass. pastures. As a result, in 2010 the largest return of Sockeye Today due to high CO2 the grass is growing greener. salmon in history swam home to Canada's Fraser River More grass growing means less dust blowing. OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force How OPR Works— Science OPR Ship Replenishes Missing Dust 00a a O O O O O O O Fish eof plankton Mineral rich dust activates photosynthesis and grow repurposing tens of millions of tonnes of deadly CO2 into new ocean life. MuCT1 of the sb*s Into tfK • can where M and the CO2 Is %fared for mlknia liRevsvred by our sfNp. ftds iunken plankton become our carton credit product Iron concentration ~200+ miles offshore is 1 often too low to support plankton blooms at 0 3 parts per trillion. At just 100 parts per N billion, the ocean pasture will bloom. From the 2012 project: Left photo shows a relatively lifeless clear blue ocean. Right photo shows the bloom that has begun a few days later. OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force OPR Brings Back -the Fish & Restores the Climate OPR World applied its unique technologies in 2012 to deliver Alaska's largest catch of salmon in history. OPR Alaska plans to repeat this success to restore Alaska'socean pastures in 2025. Number Of Fish • 250M Our ocean 200M restoratio Isom The very next year, our village work proved its value with the largest catch of salmon in history. 4 Years of historic returns valued at S1 billion ' ■ Chinool ■ Chum Coho Rnk ■ Sockeye rrrrrr..........0.b.W64b.WW +rNN►JNNN►JNr1iNNr1jNNNNtjNNN �0�010r0�0�0�0�0�010�0�0�0�0�0�0�0�0�010�O�Or0�0�000000000000000000000 4V1414V0100000000Moto VIO�V00�001+NW�VIOIM%OOWNW&kAQt14MW, +.V101*4MW-- �W�VIQ cn10 le,r Alaska Fish & Game Report 2020 Fish are made of carbon, repurposed by plankton photosynthesis; more fish in the ocean means less CO2 in the air. OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force m n m 00 ab About Past ures And Being Good Shepherds �M � � -1 � � � !, -�� ' • /� - ma's s I r= oo v 1r e j� —7 CD This Rock Art dated to 11,000 years ago depicts the This is our traditional management of the wild fish CO beginning of pasture management on land — produced by our Alaskan ocean pastures. More N mankind becoming good shepherds technology catching more fish - not a lot of good shepherding of the pasture. OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force n z °n m 90 a) v 1 co 0 N W N Giving Back To Restore The Oceans Of Alaska i One Village's Way of Restoring the Ocean "Never doubt that a small group of thoughtful, committed, citizens con change the world. Indeed, it is the only thing that ever has." -Margaret Mead OPR World, Inc. © 2024 NOT ROCKET SCIENCE ! 4,000 fifty -pound bags of mineral dust one by one, man by man, lovingly gifted to Mother Ocean to restore and replenish her life. Presentation to Alaska Seafood Task Force ROCKET SCIENCE! Our two yellow Slocum Glider satellite guided ocean robots, were on the job 24/7 for months profiling the restoration in our village ocean pasture. ._z v N N O O_ N W N Ocean Pastures Sustain Living Natural Resources Globally ocean life has declined by more than 50% since 1950 Ocean collapse is part of `climate change; but oceans influence the climate more than the climate influences the oceans ➢Collapse of ocean pastures that sustain ocean life, biodiversity, and global climate are a far greater threat than 'overfishing' ➢ Every 5 years an entire Amazon rainforest of life is eradicated in our dying ocean pastures ➢Oceans cover 72% of our blue planet and sustain 90% of global plant and animal life. ➢ 90% of the oxygen we breathe is made by ocean plants converting COZ into oxygen. ➢ Healthy living oceans actively cool the Earth OPR Alaska Ocean Pasture ➢ In doing so, billions of additional fish will Restoration technologies will swim into our nets and onto our plates ➢Billions of tonnes of CO2 are simultaneously restore oceans to historic health repurposed by ocean photosynthesis into and productivity in just a few years new life. Not just fish... all of ocean life 9 OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force 13 OPR Derives from S OYears of Ocean R&D P935•r993) eier 2001 InJuty1968.dung Gll'EMEAHALF at a lecture at the TASKEQ OF ' Woods Hole AND' Oceanographic f Institution oceanographe, Martin stoop said in his strangel, Give me a hall tanker of iron, give you an ice age.' These inflammatory words "" theory known as the iron hyp In professed that by sprinkler, v ly small amount of iron into , CD tie ocean known as high -nu, N 11 zones (HNLCs(. one cow ns of those unicellular 0 �v known as algae. If N were ^rowth in John Martin (RIP) — Ocean scientist extraordinaire, 1988 Ocean Science Meeting Presentation Ten major ocean dust experiments over 20 years completed by international academic teams at public cost in excess of $300 million OPR World began in 1999, with iterations in 2002, 2005-2007, leading to world's largest commercial scale pilot project in the Gulf of Alaska 2012, and todays OPR World's global projects • "Oceans are suffering from iron deficiency anemia, give me a half a shipload of iron, 1'll give you another ice age" NASA Link • All prove John Martin's Geritol Solution to remedy ocean anemia safely works • Results lead scientists to call for a large sustainable demonstration experiment • It 'Brings Back the Fish -and captures tens of millions of tonnes of CO2 doing so OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force OPR Is Safe, Sustainable, & Profitable Eco-restoration replenishment of natural mineral dust promptly and safely restores ocean pastures. Decades of research costing hundreds of millions have revealed zero risks arise. Restored photosynthesis repurpose tens of millions of tonnes of CO2 into new ocean life, creating a new valuable resource. • A healthy ocean pasture means more fish surviving and growing along with restored biodiversity. • Clear, blue, dying ocean deserts turn to lush blue-green healthy for all of ocean life • H2O + CO2 = H2CO3 (deadly acid) • H2O + CO2 + Photosynthesis = Life • Ocean CO2 is monetized as `Blue Carbon' in the Paris Agreement on Climate Change OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force OPR's 'Nature -Based Solution' Ocean Restoration Is The Best Solution To Fighting Climate Change In fighting `climate change' it isn't enough to merely reduce our fossil fuel emissions Yesterday's 2 trillion tonnes of CO2 cause all climate & ocean change effects the world suffers from today Natural photosynthetic ecosystems on land and sea are dramatically changed by yesterday's CO2 ➢ Emission control only reduces tomorrow's CO2 ➢ High and rising CO2 is making the oceans acidic and destroying productivity and biodiversity ➢ Drylands are today greener from high and rising CO2. But more grass growing means less dust blowing. We must replenish the dust to sustain ocean life. OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force MARKETS - How The World Makes OPR Alaska Work Paris Climate Change Agreement specifies `Blue Carbon; ocean CO2 management, as part of the common climate market Climate markets are thriving • Today the global benchmark EU pricing for carbon/climate credits is approximately $30 USD; prices are projected to significantly rise. • California law manages the sale of around the world, with 61 carbon carbon credits setting a floor price pricing initiatives in 46 national and this year of $34 USD that increases 32 subnational jurisdictions annually by 5% plus inflation. In many oceans of the world, OPR seeks to restore the world's most important commercial fish • OPR already delivered to Alaska, a historic catch of salmon. The state reported it added $600 million in economic stimulus to the economy. OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force 17 OPR"s Many Miracles Restoring oceans to historic health offers many benefits. ❖Brings Back the Fish (and all of ocean life: whales, seabirds, sea lions, ...) ❖ Repurposes deadly anthropogenic CO2 safely and sustainably into new ocean life ❖ Repairs the faltering biological ocean cooling pump and stops ocean warming ❖ Restores ocean blooms as major source of clouds, cooling and bringing rain to the world ❖ Provides the only means to biofilter, scrub, and safely remove deadly mercury from our oceans ❖ Creates valuable blue carbon/climate 'natural resource' value for nations and their people ❖ Ushers in new age of ocean stewardship, caring for instead of pirating ocean values ❖ Creates opportunity for tremendous profits shared by the company and government partners OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force 18 v CD N N M O_ N W N OPR Alaska Business Road Map ✓ OPR Alaska, an operating partnership company of OPR World, seeks to work with the state of Alaska via a `public -private partnership' agreement. ✓ OPR Alaska 'Bring Back the Fish' and 'Climate Change' work will create tremendous value in fish and restored ocean pastures (photosynthetic ecosystems), climate values are monetized as blue carbon. ✓ Alaska has right to certify OPR Alaska's 'blue carbon' as per the Paris Agreement on Climate Change, Alaska is already in a climate market partnership with California. ✓ Alaska's new Carbon Capture Utilization & Storage Legislation supports practical deployment of technologyto safe) capture, make use of and store CO2. Federal government is providing financial support for this work. g p g pp ✓ OPR Alaska, a for -profit company, operates via development and technology license agreements with OPR World. OPR World and Alaska partners are responsible for facilitating investment to finance OPR Alaska business Ian. p g p OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force OPR World Corp. Resume • 2015—Present: Continuing ocean science research, including operating OPR World and OPR Alaska and other OPR `operating partnership companies' • 2008-2013: Our Haida Salmon Restoration Corporation was `public- private partnership' with Haida Village of Old Massett, British Columbia, and Canadian federal government partners as reported by Alaska State Fish & Game 2020 "Largest Catch Of Salmon In History" • 2005-2007: Planktos, a venture -financed, publicly traded start-up company as reported in Sunday Times Of London "Will This Man-s Plankton Save The World" • 2002: First offshore ocean mineral dust replenishment experiment half -way between San Francisco and Hawaii sponsored by Rock Star Neil Young, as reported Journal Nature 2003 OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force OPR Alaska Inc. Alaska Seafood -Task Force ASK 1. Ocean Restoration as top recommendation of the Task Force 2. Begin at sea in June 2025 actively restoring Alaska's ocean 3. Ocean Restoration backed by Legislature and Governor as an effective and approved method of carbon capture and storage 4. Ocean Restoration and blue carbon accepted and approved as an Alaska climate change mitigation method and specified as equal to and equivalent to fossil fuel industry carbon capture and storage methods v N 0 0 5. Alaska petitions White House and DOE to endorse ocean N restoration as a vital national goal to be included in the US Climate Change NDC OPR World, Inc. 0 2024 Presentation to Alaska Seafood Task Force Contact Us OPR Alaska Inc. Russ George — Founder, CEO, Scientist, Deckhand russ. george @ qm ail. com Ted Crookston — Lifelong Kenai Commercial Fisherman, Setnet Owner, & VP OPR Alaska Ted.Crookston@qmctil.com Rob Lindsey — Lifelong Kodiak Commercial Fisherman, Vessel Owner, & OPR Captain ko diakwo ves @ gm ail. com OPR World, Inc. © 2024 Presentation to Alaska Seafood Task Force AGENDA ITEM #8.a. From: Thomas Lance To: Brian Price Cc: Patricia Valeno; Dave Conrad; Paddy O"Donnell; Sean Rauwcif Subject: MBRSA and Bayview road services- grading needed - no to "Self Dispatch" Date: Friday, October 18, 2024 1:35:25 PM Hello Brian, Thank you for taking my call earlier today ... cut and pasted below is a text message that I sent to Patricia yesterday - I also left her a voice mail. I am writing on behalf of MBRSA, but Paddy and Sean, chairs for Monashka Bay RSA & Bayview RSA both agree with the following: To summarize, we are glad to see the KIB Bid Announcement for road services, but, we need grader "Maintenance" now before freeze-up (and need immediate work on Three Sisters hill S- curve... 50ft is not passable to cars small trucks in one lane). It is already freezing at night here. We would also need "Maintenance" next spring, possibly as early as March. We hope you would/could hire a contractor to address our maintenance grading needs now (absent a "contract') and for next spring during the March to May period. Lastly, the bidder contract version now on line has a statement about contractor "self dispatch". We do not want any contractor to "self dispatch"... Please remove item 3.a from the services required. Only item 3.b is required for this contract, please! I am sorry that none of us noticed this detail until last night. 3. RESPONSE TIME a. Self -Dispatch operations the contractor must contact the Engineering and Facilities Director or designee, or the Service Area Chair or their designee by phone or text as to the start and stop times of all priority level completion of each event. i. The Contractor or designee shall self -dispatch for snow removal at the anticipated or present snow depth of 2" (2 inches). ii. Contractor shall self -dispatch for ice control if there is an anticipated or present freeze that would cause the roads and parking areas to be icy. b. If the Contractor or designee is contacted by the Engineering/Facilities Director or their designee, or the Service Area Chair or their designee, to perform work they shall begin snow removal, sanding, or ice control work within 2 hours of directive notification or as previously scheduled. If the Contractor does not respond in a timely manner, the Engineering/Facilities Director or their designee may utilize another contractor to respond to the work... Thank you again for your attention to this important issue. Best regards, Tom Lance, MBRSA vice -chair ********************** Page 230 of 232 �YW MG 8.a. i5->'( 06A -11 tk)S October 28, 2024 Dear Borough Assembly, Thank you for caring about Kodiak residents and working on projects that benefit our community in the present and future. We have lived at our current home, 440 Lilly Drive, for 5 years. The borough ditch along the road at the entrance to our driveway also runs down the side of our driveway and reroutes underneath it. The ditch needs to be dug out along the entirety of its length as it is completely overgrown. Water just pools and stagnates (freezing over in the winter). The water that makes it to the culvert running under our driveway is slow to make it through the short distance it needs to run. There is an overgrowth of aldersthat we have cut back along the driveway and a tree growing at the culvert, so the ditches haven't been cleared out for a very long time. There is an extension of ditches that need to be dug further up Lilly Dr where the water is pooling even more deeply. Thank you for de-limbing the large spruce tree growing in the roadside ditch that was also blocking views of oncoming traffic. Beginning the process of cleani ng up the ditches to make them functional is welcome. Sincerely, Chris and Heather Hurley Heather 906-281-1017 Page 231 of 232 AGENDA ITEM #8.a. Meeting Type: KODIAK ISLAND BOROUGH Assembly Work Session Date: Please PRINT r name leai Phone number -32)- Page 232 of 232