FY2026-34 KIB Metals Shipping with Matson NavigationMatson Navigation Company of Alaska, LLC. Contract FY2026-34
SERVICE CONTRACT NO. A0081-9
This Contract (hereafter referred to as "Contract") is by and between Matson Navigation Company of Alaska, LLC, a water carrier,
(hereafter referred to as "Carrier") and Kodiak Island Borough (hereafter referred to as "Shipper").
THIS CONTRACT HAS BEEN EXECUTED BELOW BY THE DULY AUTHORIZED REPRESENTATIVE OF EACH PARTY
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Name: Ryan Glover Name: Aimee Williams 1k)ILMJ
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Title: Sr. Director, Corporate Pricing Title: Borough Manager Borough Clerk, At est
Matson Navigation Company of Alaska, LLC Kodiak Island Borough Nova M. Javie�l�b7l a�
Manager's Office
2121 North California Blvd. Suite 500 710 Mill Bay Road
Walnut Creek, CA 94596 Kodiak, AK 99615 NN N
Fax. No. (510) 628-7365 Tel. No. (907) 486-9343
Affiliates of Shipper Covered t tract: O
Kodiak Island Borough Land 1 obnson' G
Kodiak Island Borough EF retar}sLi
Invoices to: EFsecreta k i us
In consideration of the mutual covenants set forth herein, Carrier and Shipper (hereafter may be refeF�ta "sarty" or
collectively as "Parties") hereby agree as follows: �:"�K
1. ENTIRE CONTRACT
This Contract, including all attachments hereto, constitutes the full understanding of the Parties and complete and exclusive
statement of the terms of the Contract. The Contract shall replace and supersede any oral or written agreements between the Parties
that deal with the same subject matter as is referenced herein.
II. TERM
The term of this Contract is set forth in Appendix A.
111. CARGO, PAYMENT, AND SERVICE COMMITMENTS
A. This Contract covers the transportation of certain cargo moving in Carrier -provided containers in the U.S. noncontiguous)
domestic trade with Alaska, as more specifically designated below. The cargo shall, be transported pursuant to the rates, termsf
and conditions set forth herein and in Appendix A and Attachment 1 hereto, and+.subsequent revisions thereto, which are
incorporated herein by reference and made a part of this Contract.i i
B. During the term of this Contract, Shipper shall tender to Carrier for transportation a minimum volume of Contract cargo as
provided for in Appendix A ("Minimum Volume Commitment"). For the purpose of calculating volume of cargo tendered under
this Contract, the shipment shall be regarded as having been tendered according to the date entered by'T-er on the bill of
lading. For each container of Contract cargo tendered to Carrier by Shipper for transportation under this Contract, the rates set
forth in Appendix A shall apply based on the nature of the cargo, equipment type, transportation service provided (e.g., Carrier's
marine terminal to Carrier's marine terminal), and origin and destination. Shipper or shipper's agent is responsible for indicating
this Contract number on its shipping instructions submitted to the Carrier for each shipment applicable to this Contract.
However, the Carrier shall reserve the right to permit cargoes not so noted to count toward the Minimum Volume Commitment
upon proof of inadvertent omission.
C. Except as otherwise expressly set forth herein, all cargo transported pursuant to this Contract shall be subject to all charges,
surcharges, arbitraries, assessorials, and rules, including the terms of Carrier's bill of lading , set forth in Carrier's tariff
applicable to the geographic scope of this Contract and published at www.matson.com, which tariff, including its charges,
surcharges, arbitraries, assessorials, rules and Carrier's bill of lading terms, is incorporated herein by reference, made a part of
this Contract, and may be amended by Carrier from time to time (hereafter referred to as "Governing Tariff(s)").
Matson Navigation Company of Alaska, LLC.
Kodiak Island Borough
Service Contract A0081-9
D. The terms of Carrier's bill of lading, covering individual shipments under this Contract shall apply to shipments hereunder. In
the event of a conflict among or between the terms of this Contract, Governing Tariff(s), and/or Carrier's bill of lading, the
terms of Carrier's bill of lading shall prevail over the terms of this Contract and/or Governing Tariff(s), and the terms of this
Contract shall prevail over the terms of the Governing Tariff(s) other than Carrier's bill of lading terms.
E. Shipper shall book Contract cargo with Carrier a reasonable amount of time in advance of tender of cargo, and, if Shipper needs
to cancel a booking, Shipper shall do so on a timely basis. Shipper shall space cargo bookings as evenly as possible with
Carrier during the term of this Contract to enable Carrier to allocate sufficient space and equipment to satisfy Shipper's
requirements. Shipper shall safely and securely load Contract cargo in and unload cargo from Carrier -provided containers at the
expense of Shipper.
F. Shipper shall be named as the "Shipper" and/or "Consignee" on all Carrier bills of lading covering transportation under this
Contract. All cargo moving under this Contract shall move on a non-negotiable bill of lading.
G. Carrier shall be compensated for the transportation of Contract cargo under this Contract pursuant to the rates, charges, terms
and conditions set forth in this Contract. Provided Shipper has a current Credit Agreement executed with Carrier, Shipper shall
pay Carrier all rates and charges due for each shipment under this Contract within 30 calendar days from the date of actual
sailing of vessel for each such shipment, and within 30 calendar days of the actual sailing of vessel date for each such shipment
in the case of demurrage and detention charges in connection with such shipments. Whenever Shipper fails to make timely
payment, at Carrier's option Shipper shall prepay Carrier on a cash basis for the transportation of all future cargo moving under
this Contract until Shipper brings its payments under this Contract within the payment period hereunder. Further, if payment is
not made, Carrier shall have a lien which includes the right to retain custody of any and all cargo and/or equipment owned or
tendered to Carrier by Shipper until all past due charges are paid in full.
H. Carrier shall transport the Minimum Volume Commitment set forth in Article III.B. under this Contract on terms and conditions
set forth in this Contract, as timely booked by Shipper against available space. At Carrier's option, and subject to availability
of space, Carrier shall transport Contract cargo tendered by Shipper in excess of the Minimum Volume Commitment during the
term of this Contract pursuant to the terms and conditions of this Contract. The Service Commitment under this Contract is
subject to the schedules and service patterns of Carrier.
IV. FORCE MAJEURE
Notwithstanding any other provision of this Contract, to the extent that either Party may fail to satisfy any obligation imposed under
this Contract (except for a payment or confidentiality obligation) as a result of "Force Majeure'', performance of this Contract shall,
to that extent, be deemed to have been frustrated and no cause of action for breach or liability shall arise as a consequence thereof.
For the purposes of this Article, "Force Majeure" means strikes, work stoppages, lockouts or exceptional circumstances arising from
the threat thereof, Acts of God, State or the Public Enemy, including but not limited to war, acts of nations, acts of governments, acts
of independent states, riots, civil disorder or insurrection, embargo, participation in the US Defense Department Emergency
Preparedness Program, or other disruption of or interference with trade, marine disaster, fire or other casualty. The Party suffering
the Force Majeure shall diligently attempt to remove such cause or causes and shall promptly notify the other Party of its extent and
probable duration. If the Party suffering the Force Majeure is unable to remove the cause or causes within 30 days, the other Party
shall have the right at its option, to terminate, without imposition of penalty or obligation to pay damages, this entire Contract or any
portion thereof caused by the Force Majeure event. In case of Force Majeure, the Minimum Volume Commitment and Carrier's
service commitments will be reduced on a pro rata basis for the period or periods (including Saturdays, Sundays and legal holidays)
during which shipments cannot be made.
V. LIQUIDATED DAMAGES
If, for any cause other than a cause covered by Article IV or XII of this Contract, the Minimum Volume Commitment set forth in
Article III.B. of this Contract is not satisfied during the term of this Contract, Shipper shall pay Carrier liquidated damages in lieu of
all other damages which would be difficult if not impossible to ascertain with reasonable certainty. Liquidated damages are
determined by multiplying the difference between the number of container loads actually tendered to Carrier and the Minimum
Volume Commitment, by the amount set forth in Appendix A and designated as "liquidated damages". Shipper shall pay such
liquidated damages to Carrier within 30 calendar days following written notification by Carrier.
VI. CONFIDENTIALITY
Except to the extent required by law, by request of a goverment or agency thereof, or request of a contractor pursuant to contractual
obligation with the Carrier, the Parties shall at all times keep confidential the fact of this Contract, the terms and conditions of this
Contract, and all documents and information provided to a Party under the terms of this Contract, and shall not disclose any such
information to any third party (not including a parent, subsidiary, or affiliated company), except with the prior written consent of the
other Party. Notwithstanding the foregoing, the obligations under this Article shall not apply to: (i) information that, at the time of
disclosure, is, or after disclosure becomes part of, the public domain other than as a consequence of a breach of this Contract; (ii)
information that was known or otherwise available to a Party prior to its disclosure to the other Party; or (iii) information that is
independently developed by either Party. Upon breach of any obligation under this Article, the non -disclosing Party shall have the
right to terminate this Contract effective immediately; this shall be the sole remedy for such breach.
Matson Navigation Company of Alaska, LLC.
Kodiak Island Borough
Service Contract A0081-9
VII. WAIVER OF RIGHTS AND REMEDIES UNDER ICC TERMINATION ACT
Shipper and Carrier, pursuant to section 14101(b) of the ICC Termination Act of 1995, hereby waive all rights and remedies under
the Act for the transportation of cargo under this Contract; provided, however, that Shipper and Carrier do not waive the provisions
governing registration, insurance, or safety fitness.
VIII. TERMINATION
In addition to termination provided for in Articles II, IV and VI, this Contract may be terminated by the mutual agreement of the
Parties, or upon notice by the terminating Party to the other Party, which notice shall specify the reason for the termination and the
effective date of such termination, upon or after the occurrence of the following events: (i) by either Party due to a breach by the
other Party of any of the terms or conditions of this Contract which is not corrected within 30 days after receipt of written
notification thereof; (ii) by either Party if any petition filed or action respecting the other Party directly in a reorganization,
arrangement, creditors composition, readjustment, liquidation, dissolution, bankruptcy or similar relief under any other present or
future United States, or other statute, law or regulation, whether or not resulting in the appointment of a receiver, liquidator, assignee,
trustee, custodian, or other similar official, and the continuation of any such decree or order is unstayed and in effect for a period of
30 consecutive days; or (iii) by either Party upon the making by the other Party of an assignment for the benefit of creditors, or the
admission by such Party in writing of its inability to pay its debts generally as they become due, or the taking of action by such Party
in furtherance of any such action.
Termination of this Contract shall not terminate or otherwise affect any accrued obligations of one Party to the other Party under this
Contract which have arisen prior to such termination.
IX. NOTICES
All notices required to be given under this Contract shall be in writing and deemed given when hand -delivered or by documented
overnight delivery service, or sent by telecopy, telefax, or other electronic transmission service, provided a confirmation copy is also
sent no later than the next business day by first class mail, return receipt requested, to the Party to whom the same is directed at its
address as set forth below or to such other address as such Party shall designate by notice under this Article:
If to Carrier:
Matson Navigation Company of Alaska, LLC
2121 North California Blvd. Suite 500
Walnut Creek, CA 94596
Attention: Corporate Pricing
If to Shipper: Name and address listed on Signatory I" page unless a difference listing below
X. ASSIGNABILITY
Any assignment of this Contract without the prior written consent of the other Party shall be void, except that Carrier may assign this
Contract to a successor or affiliated company without prior consent. Notice of such assignment shall be provided by Carrier to
Shipper within five business days of the assignment. This Contract shall be binding on the Parties hereto and their respective,
permitted successors and assigns.
XI. MODIFICATIONS
Except as otherwise provided, no modification of any of the terms or conditions of this Contract shall be effective unless in writing,
signed by an authorized representative of each Party, and specifically stating that it is such modification. Modifications may be made
via electronic mail, subject to mutual consent by an authorized representative of each Party.
XII. WAIVER -DEFAULT
The failure or delay of either Party to insist in any instance upon strict performance of any of the provisions of this Contract, or to
take advantage of any of such Party's rights hereunder, shall not be construed as a waiver of such provisions or the relinquishment of
such rights, but the same shall continue in full force and effect. Should either Party be in default with respect to any of the terms or
conditions of this Contract, the non -defaulting Party may, without prejudice to any other legal remedy, defer further performance
hereunder until such default is remedied. If the non -defaulting Party defers further performance hereunder, the non -defaulting
Party's commitment shall be reduced for the period or periods (Saturdays, Sundays and holidays included) of such deferral of
performance.
XIII. COUNTERPARTS
This Contract may be executed simultaneously in one or more counterparts, including by means of telefaxed signature pages, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.
XIV. RECORD KEEPING
In order to substantiate that the Shipper has met the minimum volume requirement as stated in Item III.B., Carrier may request copies
of the bills of lading of each shipment. Upon request, bills of lading must be submitted to Carrier in a timely fashion.
Matson Navigation Company of Alaska, LLC.
Kodiak Island Borough
Service Contract A0081-9
APPENDIX A
MINIMUM VOLUME COMMITMENT:
15 Container Loads
LIQUIDATED DAMAGES:
$400 per shortfall Container Load
DURATION:
Effective Date: October 1, 2025
Expiration Date: September 30, 2026
RATES: (SOUTHBOUND)
1) Scrap Metal, to include crushed cars
From: Kodiak, AK Door
Destination SVC Basis Rate EQ Notes
Tacoma, WA Door-CY PC $2,127 40D/40HD
Tacoma, WA Door-CY PC $2,127 400T
SURCHARGES:
A. FUEL SURCHARGES:
Rates contained in this Appendix and addenda thereto are subject to fuel surcharges per Rules 137, 138 and 139 as filed in the
Governing Tariffs.
B. TERMINAL HANDLING CHARGES:
Rates contained in this Appendix and Addenda thereto are subject to Rule 960 of the Governing Tariff unless otherwise specified.
C. HAZARDOUS MATERIALS SURCHARGE:
Rates contained in this Schedule and Addenda thereto are subject to Rule 540 as filed in the Governing Tariff.
OTHER:
D. GENERAL RATE INCREASES:
Except as otherwise provided herein, base freight rates, arbitraries and other special charges provided in this Schedule A and
Addenda thereto shall not be subject to General Rate Increases as filed in the Governing Tariff.
E. ELECTRONIC SIGNATURES:
The Parties may execute or sign this Contract and any subsequent amendments and Contract -related communications by
electronic signature where such signatures are considered valid under applicable law. For this purpose, "electronic signature"
means an electronic symbol or text attached to or logically associated with the Contract and executed or adopted by a person with
the intent and authority to sign this Contract, amendments or related communications. Such electronic signatures may be
transmitted by fax, web interface or email, and must contain textual or other indication that the Party is signing the Contract,
amendment or related communication. Execution of this Contract or any subsequent amendment by electronic or any other form
of legal signature constitutes agreement to be bound by the terms of this Contract or amendment.
F. THROUGH RATE/INLAND ONLY RATE ADJUSTMENTS:
Due to volatile intermodal issues (including, but not limited to, inland port/rail congestion, fuel surcharges and power
availability), Carrier reserves the right to review and adjust through and inland -only rates contained herein on a quarterly basis,
commencing with the effective date of this Agreement. Should the resulting adjustment to through and inland -only rates
adversely affect Shipper's ability to meet the MVC (Minimum Volume Commitment) contained herein, the MVC may be
amended by the number of loads directly affected by any such adjustment.
Kodiak Island Borough
Assembly Newsletter
Vol. FY2026, No. 10 November 07, 2025
At Its Regular Meeting Of November 6, 2025, The Kodiak Island Borough Assembly Took The Following
Actions. The Next Regular Meeting Of The Borough Assembly Is Scheduled On Thursday, November
20, 2025, At 6:30 p.m. In The Borough Assembly Chambers.
AMENDED The Agenda To Remove The Following Items Off The Agenda:
• Authorization For The Borough Manager To Reimburse Providence Kodiak Island Medical Center
To Procure A New Chiller Unit In The Amount Of $1,150,000
• Authorization For The Borough Manager To Reimburse Providence Kodiak Island Medical Center
For Chiller Replacement Project Permitting, Construction Administration, And Closeout In The
Amount Of $71,436
• Authorization For The Borough Manager To Reimburse Providence Kodiak Island Medical Center
For Design Phase To 100% For The Reverse Osmosis And Steam Generator Project To Include
Permitting, Construction Administration, And Closeout In The Amount Of $111,454
PROCLAIMED November 4 To 11, 2025 As Operation Green Light A Time To Salute And Honor The
Service And Sacrifices Of Those Transitioning From Active Service And Encourage The Community
Members To Recognize The Importance Of Honoring All Those Who Made Immeasurable Sacrifices To
Preserve Our Freedom By Displaying Green Lights In A Window Of Their Place Of Business Or
Residence
ADOPTED Ordinance No. FY2026-11, Amending Various Sections Of Kodiak Island Borough Code Title
17 Zoning, Related To Child Care Facilities
ELECTED Assembly Member Whiteside As The 2025-2026 Borough Assembly Deputy Presiding Officer
AUTHORIZED The Borough Manager To Execute Contract No. FY2026-23 For Kodiak Island Borough
Facilities Contract Re -Bid With MK Enterprises, LLC
AUTHORIZED The Borough Manager To Execute Contract No. FY2026-34 With Matson Navigation
Company, For Recycled Metals Shipping
ADOPTED Resolution No. FY2023-20C, Amending Resolution To Add The Borough Project Manager
As A Board Member To The Health Facilities Advisory Board (HFAB)
ADVANCED Ordinance No. FY2026-12, Amending Title 2 Administration And Personnel, Chapter 2.125
Architectural/Engineering Review Board, Section 2.125.030 Qualifications To Public Hearing At The Next
Regular Meeting Of The Assembly
VOICED NON -PROTEST To The State Of Alaska Alcohol And Marijuana Control Office (AMCO) Retail
Marijuana Store License Renewal Application For High Rise, LLC, And Direct The Clerk To Notify AMCO
Of This Decision
View our website: Visit our Facebook page:
www.kodiakak.us www.facebook.com/KodiakislandBorough
AMENDED, CONFIRMED The Mayoral Appointments Of Assembly Member Representatives To
Different Boards And Committees As Follows:
Architectural Review Board
ssembl Member Ames
Borough Lands Committee
Assembly Member Johnson
Assembly Member Whiteside
Joint Building Code Review Committee
Member Gardner
—Assembly
Kodiak College Council
AssemblyMember Roberts
Kodiak Fisheries Work Group
Assembly Member Smiley
Assembly Member Woods
Assembly Member Whiteside Alternate
Kodiak Fisheries Advisory Committee
Assembly Member Johnson
Parks and Recreation Committee
Assembly Member Woods
Providence Health System Service Area
Assembly Member Gardner
School District Budget Advisory Committee
Member Woods
—Assernbly
School District Facilities Review Committee
Member Ames
—Assembly
School District Strategic Planning Committee
Assembly Member Roberts
Solid Waste Advisory Board
AssemblyMember Gardner
Health Facilities Advisory Board
Assembly Member Smiley
Assembly Member Johnson
Assembly Member Roberts
Solid Waste Contract Committee
Assembly Member Whiteside
Assembly Member Ames
Assembly Member Smile
ACCEPTED With Regret, The Resignation Of Mr. Craig Dagen, DECLARED The Seat Vacant On The
Fire Protection Area No.1 Board Effective October 4, 2025, And DIRECTED The Borough Clerk To
Advertise The Vacancy Per Borough Code
AUTHORIZED The Borough Manager To Reimburse Providence Kodiak Island Medical Center For The
Permitting, Construction, Installation, And Closeout Of Distribution Panel 6 (DP6)
Replacement/Expansion In The Amount Of $121,000
CONVENED INTO EXECUTIVE SESSION To Discuss The Evaluation And Scores Of The Legal Counsel
Applicants, A Matter Which Might Include A Discussion That Could Potentially Prejudice The Reputation
And Character Of The Applicants. INVITED The Borough Mayor, Assembly, Borough Manager, And The
Clerk Into Executive Session; And ANNOUNCED That Direction Was Given To The Manager To Enter
Into A Contract Negotiation With Landye Bennett Blumstein LLP
View our website: Visit our Facebook page:
www.kodiakak.us www.facebook.com/KodiakislandBorough