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2007-06-07 Regular MeetingJune 7, 2007 — 7:30 p.m. Citizens Comments And Public Hearing Numbers: Toll Free Number: (800) 478 -5736 Local Number: 486 -3231 Mr. Jerome Selby Borough Mayor Term Expires 2007 Mr. Tom Abell Deputy Presiding Officer Assembly Member Term Expires 2008 Ms. Pat Branson Assembly Member Term Expires 2007 Mr. Jerrol Friend Assembly Member Term Expires 2009 Ms. Sue Jeffrey Assemb /y Member Term Expires 2008 Ms. Chris Lynch Assembly Member Term Expires 2009 Mr. Reed Oswalt Assembly Member Term Expires 2008 Ms. Barbara Williams Assembly Member Term Expires 2007 Mr. Rick Gifford Borough Manager Ms. Nova Javier, CMC Borough Clerk June 7, 2007 Regular Meeting Assembly Chambers Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 12. 1. INVOCATION 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVAL OF AGENDA AND CONSENT AGENDA All items listed with an asterisk(*) are considered to be routine and non - controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 5. APPROVAL OF MINUTES A. *Kodiak Island Borough Regular Meeting of May 3, 2007. 6. AWARDS AND PRESENTATIONS - None. 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments. 8. COMMITTEE REPORTS A. Annual Economic Development Committee Report B. U.S. Army Corp of Engineer Update 9. PUBLIC HEARING A. Ordinance No. FY2008 -01 Levying Taxes on All Taxable Real and Personal Property Within the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal Year Commencing on the First Day of July 2007 and Ending on the Thirtieth Day of June 2008 (Fiscal Year 2008 Budget.) B. Ordinance No. FY2007 -16 Amending Title 3 Revenue and Finance, Chapter 3.24 Personal Property Tax to Add Section 3.24.090 Personal Property Minimum Billing. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS - None. Kodiak Island Borough Assembly Agenda Page 1 13. NEW BUSINESS A. CONTRACTS 1. Contract No. FY2007 -46 Floor Covering Replacement at Kodiak Schools. 2. *Contract No. FY2007 -47 Kodiak Island Borough Facilities Schools and Grounds, Road Maintenance and Repairs, Snow Removal and Sanding, and Other Small Projects. 3. *Contract No. FY2007 -48 Service Area No. 1 Road Maintenance and Repair and Snow Removal and Sanding. 4. *Contract No. FY2007 -49 Womens Bay Service Area Road Maintenance and Repair and Snow Removal and Sanding. B. RESOLUTIONS 1. Resolution No. FY2007 -38 Rescinding Resolution FY2006 -27 and Establishing a Joint Kodiak Fisheries Advisory Committee. 2. *Resolution No. FY2007 -29A Rescinding Resolution No. FY2007 -29 and Authorizing the Borough Manager to Sign a Memorandum of Agreement (MOA) Transferring Responsibilities for Legislatively Approved Capital Projects and Grant Funds for Village Projects and Equipment to the Community of Ouzinkie. 3. Resolution No. FY2007 -39 Declaring an 84.38 Acre Portion of Borough Land, Described as Tracts B1, B2, B3 and B4 -A, Bells Flats, Alaska Subdivision a Surplus to Borough Need and Authorizing the Borough Manager to Negotiate Directly with the Petitioners for a Disposal of Borough Land by Lease for Fair Market Value C. ORDINANCES FOR INTRODUCTION — None. 14. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker.) 15. ASSEMBLYMEMBERS' COMMENTS 16. ADJOURNMENT 17. EXECUTIVE SESSION 1. Attorney - Client Privileged Communication Regarding Emergency Medical Services 18. INFORMATIONAL MATERIALS (No Action Required) A. MINUTES OF OTHER MEETINGS 1 Bay View Drive Service District Board Budget Meeting of March 23, 2007 2. Gravel task Force committee Regular Meeting of April 2, 2007 3. Monashka Bay Road Service Area Budget Meeting of March 7, 2007 4. Parks & Recreation Committee Regular Meeting of April 24, 2007 5. Womans Bay Service Area Board Regular Meeting of May 14, 2007 B. REPORTS — None. Kodiak Island Borough Assembly Agenda June 7, 2007 Page 2 b oci) os o n 0 0 n 1- z ›7 s4 EipmErm Mr. Friend k II AagJsp'SW Ms. Lynch Mr. Oswalt Ms. Williams ! TOTAL I Haw ' TNI Ms. Branson s- " -d g \ J \N Mr. Abell Ms. Branson puaud Y 6azjj0l' •sy'1 Ms. Lynch 4IEMS0 '3y� Ms. Williams 'Iy.LO.L Q. o �J U Mr. Abell Ms. Branson y • Mr. Friend y iia.S3af 'SW gouXq 'sN Mr. Oswalt Ms. Williams 'Id.LO.L ISZI \--r) ii 0 M U W ch mu ups Mr. Abell Ms. Branson X Mr. Friend Ms. Jeffrey tlouJCZ SN Mr. Oswalt SureTlitt4l 'SN TOTAL \\ I C I AI n 5Z--- cD U ) I� ilagy u'Ar II t Ms. Branson puaud ' TN 0 II Ms. Jeffrey I g ouC' I •s II Mr. Oswalt I Ms. Williams I TOTAL b oci) os o n 0 0 n 1- z 1 O d N N 0 O U fiN Mr. Abell Ms. Branson t' Mr. Friend Ms. Jeffrey TIouki . sN4 Mr. Oswalt Ms. Williams TOTAL cga n O 8 rn cn CD Mr. Friend Ms. Jeffrey Ms. Lynch 1IemsO •.r[nl Ms. Williams TOTAL now '.TN � Ms. Branson I O 8 CO cn o b • Mr. Abell Ms. Branson puau3•ry� Ms. Jeffrey T1owC'I . Sins lfems0 ' Ms. Williams 41 TOTAL m o ° so. 2 4 b > Mr. Abell Ms. Branson Mr. Friend Ms. Jeffrey TIouka . svq 5r A' Jms IN sureTlIT •slAr TOTAL S \ a c m n `xxxC 0 Mr. Abell Ms. Branson Mr. Friend 1[eMSO •11e u� z .s J4 i agjaf 'SW r iviOI CTTTtTTTT AA •CTAT 40 v m 1 O d N N 0 O U KODIAK ISLAND BOROUGH ASSEMBLY MEETING Regular Meeting of: Please print your name V07 Please print your name 1 (k. i a4--- ag e Cr J ub I SLo Gc)ij chat hylci, KODIAK ISLAND BOROUGH Regular Assembly Meeting May 3, 2007 A regular meeting of the Kodiak Island Borough Assembly was held May 3, 2007 in the Assembly Chambers of the Kodiak Island Borough Building, 710 Mill Bay Road. The meeting was called to order at 7:30 p.m. The invocation was given by Captain Dave Davis of the Salvation Army, followed by the Pledge of Allegiance. Present were Mayor Jerome Selby, Assembly members Tom Abell, Pat Branson, Jerrol Friend, Sue Jeffrey, Reed Oswalt, and Barbara Williams. Absent was Assembly member Chris Lynch. Staff members present were Manager Rick Gifford, E &F Director Woody Koning, CDD Director Bud Cassidy, Finance Director Karl Short, Clerk Nova Javier, and Assistant Jessica Basuel. BRANSON moved to specifically excuse Assembly member Lynch, seconded by OSWALT. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF AGENDA ABELL moved to approve the agenda, seconded by BRANSON. VOICE VOTE ON MOTION TO APPROVE THE AGENDA CARRIED UNANIMOUSLY APPROVAL OF MINUTES Kodiak Island Borough Regular Meeting of April 12, 2007. OSWALT moved to approve the minutes as submitted, seconded by BRANSON. VOICE VOTE ON MOTION TO APPROVE THE MINUTES CARRIED UNANIMOUSLY AWARDS AND PRESENTATION Mayor Selby proclaimed May 11, 2007 as Child Care Provider Appreciation Day in Kodiak urging all citizens to take time to recognize and appreciate Alaska Child Care Providers. The proclamation was accepted by Dawn Freeman, Child Care Provider and pre - school teacher. Mayor Selbly proclaimed the first week of May as "Awakening of the Bear" in Kodiak urging all citizens to acknowledge the challenges the Alutiiq people continue to face, and recognizing the significance of the annual Esgarlluku Taquka'aq - Awakening Bear Spring Event and the contribution of the Alutiiq people Island -wide. The proclamation was accepted by Iver Malutin. Iver Malutin thanked the Assembly and gave a little history about the indigenous thanked -- - Assembly - • •�-•) �^• �� gave a ��«��. � n Jlvl y QuVUI the �� iuiyCi wus people (natives living naturally) in the community. He invited the Assembly to come to the celebration on Sunday at the High School Commons and sample some of what the indigenous people eat. Mayor Selby announced the Horizon Lines plaque will be presented at the next regular meeting. Kodiak Island Borough Assembly Minutes May 3, 2007 Page 1 CITIZENS' COMMENTS Dave Davis, Captain of Salvation Army and Crossing Guard Coordinator, thanked the Assembly for supporting the program. He appreciated all the crossing guard volunteers and the community as a whole for keeping the school children safe. Erin Harrington, McDowell Group Research Analyst, thanked the Assembly for supporting the Young Fisherman's Summit held in January. She reported they were able to provide scholarships for a number of attendants. They plan on hosting the event again in December 2007. She presented the Assembly with a photograph of the participants on behalf of Volunteering Organizing Committee and Marine Advisory Program of the University of Alaska. Pam Foreman,Executive Director for the Kodiak Island Convention of Visitors' Bureau, gave an update on the tourism industry. They are now working on the 2008 Visitors Guide and are working with the Chamber of Commerce regarding the improvement and upgrades to their website. She reported McDowell Group has been working with State of Alaska on the Alaska Visitors Statistics Program regarding the research on travelers to Alaska. She announced McDowell Group will do a presentation on May 10, 2007 at the Kodiak College on tourism. Ms. Foreman reported the first ship to Kodiak will be in on May 15, 2007. The Princess will be bringing 8 additional ships next year to the Island. Stephen Taufen thanked Assembly member Abell for his participation with SWAMC. He and Shawn Dochtermann also attended the meeting. He commented that the Borough spoke out well last year on the extension of rockfish pilot program and wished the City did the same. He thanked the Assembly for its participation and support for the task force. Shawn Dochtermann, Kodiak Fisherman, commented on the State road between Benny Benson and the old Beach Comber which needed fixing. He hoped the Assembly would urge DOT on getting the roads fix. He reported that NPFMC put in a formal proposal to reallocate IFQ shares to crew members as a coop. He provided documents in the Assembly's mail to be used for the May 8 Joint Work Session. He requested endorsement from City and Borough by Fall. COMMITTEE REPORTS Assembly member Oswalt reported that the Architectural Review Board met and discussed the upcoming contract with ECI /Hyer. He mentioned the Board was unsure if the attorney's opinion had been sought regarding the Board's intent to reconsider its recommendation of ECI Hyer for the Fish and Game building firm. The Board was unhappy with the escalating costs and delays regarding the pool. Assembly member Oswalt requested to get updated information on the pool. PUBLIC HEARING None. BOROUGH MANAGER'S REPORT Manager Gifford reported the 70n7 Alaska Legislative Session wou ld be over in less than two - r - - -- - • - ---- • ••�•�•��. .-v. �..a�uu vv Session i vvuuiu be vVCI II 1 less lfldrl iW0 WeeKs and hoped that the Legislation would approve funding for the Borough to help schools and borough services. A hearing on the Narrow Cape public use bill was scheduled in the Senate Finance Committee for May 4, 2007 and in the House Finance Committee for May 7, 2007. He encouraged the community to contact the Legislature and let them know the importance of revenue sharing and school funding was to the community. He announced that May Clean -Up Day was on Saturday, May 5, 2007. The Borough would hold a "Lottery Drawing" for the disposal of a maximum of 60 cars. Applications Kodiak Island Borough Assembly Minutes May 3, 2007 Page 2 would be available in the Community Development Department and on the Borough's website. He traveled to Anchorage and met with two of the federal trustees for the EVOS Council to discuss the proposal for the ADF &G building. He also met with DOT Regional Director Gordon Keith and staff to discuss the roads and trails project and is reviewing an agreement that will be brought to the Assembly in the near future. Manager Gifford introduced Woody Koning as the new Engineering and Facilities Director and announced Bud Cassidy's transfer to the Community Development Department. Assembly member Oswalt would like to see the Borough work with the City for a similar consistent process of getting rid of junk vehicles in the future. Assembly member Williams welcomed Mr. Koning. She concurred with Assembly member Oswalt regarding the removal of abandoned vehicles and was looking forward on seeing how many cars would actually be removed this year. Assembly member Abell thanked the Borough for utilizing money generated from the vehicle registration tax for the removal of junk vehicles. He hoped that all 60 cars would be taken off the street. He commented that this year's removal of junk vehicles was an experiment and applauded the Borough for its efforts. Manager Gifford said staff came up with a compromise on the best way of handling the removal of junk vehicle and hoped to figure out a better way for next year. MESSAGES FROM THE BOROUGH MAYOR Mayor Selby commented that the removal of junk vehicles was a great start. He reported that he and other Mayors were asked to come to Juneau on April 27, 2007 and participated in what turned into a Governor's press conference on revenue sharing. He was pleased with the Governor for being strong and for putting money in the budget for the communities. He encouraged everyone to continue to call the legislature to let them know how important revenue sharing is to the community. UNFINISHED BUSINESS None. NEW BUSINESS A. CONTRACTS 1. Contract No. FY2007 -42 Repair of the Leachate Treatment System. FRIEND moved to authorize the manager to execute Contract No. FY2007 -42 with Red Hook Construction of Kodiak, Alaska in the amount not to exceed $137,600, seconded by BRANSON. Manager Gifford reported that the leachate treatment system at the landfill was initially designed and constructed in the late 1990's. The pond and wetland cells act as a filter system to process any contaminates in the leachate. Because of the large naturally - the �vuv� IGIV. Because of the lal y c lia�ul ally ut::VUr tiny` iron content of the water, Iron precipitates out during the aeration process in the "upper pond" and deposits a film over the rock media. The recent toe drain extension contributed additional sediment which has clogged the space or pores of the rock and the upper pond and the lower ponds have significant muck. The Borough must have the repairs completed by the end of June. One bid was received from Red Hook Construction in the amount of $137,600 and staff recommends that Red Hook Construction be awarded the contract. Kodiak Island Borough Assembly Minutes May 3, 2007 Page 3 ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Abell, Branson, Friend, Jeffrey, Oswalt, Williams B. RESOLUTIONS None. C. ORDINANCES FOR INTRODUCTION 1. Ordinance No. FY2007 -14 Amending Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel, Chapter 2.17 Rules of the Assembly, Section 2.17.020 General Rules to Prohibit Assembly Member Attendance at Regular and Special Meetings by Teleconference and Allow it Only During Work Sessions and Emergency Meetings. JEFFREY moved to adopt Ordinance No. FY2007 -14 in first reading to advance to public hearing on May 17, 2007, seconded by BRANSON. Clerk Javier reported that the Assembly requested this ordinance to codify policy regarding teleconferencing. This would prohibit Assembly members' attendance at regular and special meeting by teleconference and only allow it during work session and emergency meetings to adopt emergency ordinances. Discussion ensued about the pros and cons of teleconferencing and what should be allowed and not allowed. Clerk Javier clarified that State law currently allows participation and voting during regular meetings. This ordinance was to set policy and parameters in the Borough code. ROLL CALL VOTE ON MOTION CARRIED FOUR TO TWO: Branson, Friend, Jeffrey, Abell, (Ayes); Oswalt, Williams (Noes) 2. Ordinance No. FY2007 -15 Amending the Kodiak Island Borough Code of Ordinances Title 2 Administration and Personnel to Add Chapter 2.53 Solid Waste Advisory Board. BRANSON moved to adopt Ordinance No. FY2007 -15 in first reading to advance to public hearing on May 17, 2007, seconded by WILLIAMS. Manager Gifford reported that the Assembly directed staff to create a Solid Waste Advisory Board (SWAB) for the Kodiak Island Borough to assist in identifying creative and workable solutions for ongoing and emerging issues in solid waste management, providing a forum for input and recommendations to the assembly on solid waste policy and program direction. The Board will work to develop consensus on how to implement proposed solutions and the focus of the group is broad policy issues rather than technical details. This board will serve in an advisory capacity to the Mayor and Assembly on matters affecting solid waste handling in the KIB and establishing a solid waste management plan. The proposed ordinance recommends five Borough residents who represent a cross section of the a social nd economic str of the community. . -. -..-- economic � ��.. �.� u�,u, � of the co. � �� .u. �� is also recommended that an Assembly member and a KIB staff be ex- officio members. Based on Assembly discussion at last week's work session, a section on organization was added that would have the Board designate its Chair and Vice Chair at the first meeting and require the Board to hold at least one meeting annually. Discussion ensued regarding the number of meetings the board should hold. Staff clarified one meeting annually was the minimum, initially, the Board can meet as many time it wants. Kodiak Island Borough Assembly Minutes May 3, 2007 Page 4 ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Friend, Jeffrey, Oswalt, Williams, Abell, Branson D. OTHER ITEMS 1. Mayoral Appointment to the Gravel Task Force. FRIEND moved to confirm the Mayoral appointment of Mr. Charlie Powers to the vacant seat on the Gravel Task Force, seconded by BRANSON. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Oswalt, Williams, Abell, Branson, Friend CITIZENS' COMMENTS None. ASSEMBLY MEMBER COMMENTS Assembly member Oswalt hoped to get the garbage issue resolved. Assembly member Williams commented regarding the handout given by Finance Director Karl Short on the number of visits to the Borough website. She encouraged the public to use the Borough website to communicate with the Assembly. Assembly member Jeffrey welcomed E &F Director Woody Koning and thanked Captain Davis for coordinating the crossing guard program. Assembly member Friend welcomed E &F Director Woody Koning to the Borough. Assembly member Branson welcomed E &F Director Woody Koning and congratulated CDD Director Bud Cassidy on his transfer. She thanked Captain Davis for the crossing guard report and encouraged the Assembly and City Council to take part in the crossing guard program. She appreciated the Sun'aq invitation. Assembly member Abell would volunteer as a crossing guard in the future. He reported the Kodiak Football league will be cleaning around the landfill area. He thanked Bertha Malutin for cooking the peroke at the luncheon. He welcomed E &F Director Woody Koning to the Borough and congratulated Bud Cassidy on his transfer to the Community Development Department. He requested to hear the reports on the different funding programs regarding school bond projects, hospital, etc. Mayor Selby announced there would be a Joint Borough /City Council Work Session on Tuesday, May 8 at 7:30 p.m. in the Borough Assembly Chambers. The next Assembly work session is scheduled on Thursday, May 10 at 7:30 p.m. in the Borough Conference Room and the next regular meeting of the Assemhly is schpriniod on Thursday, M ay 17 at 7:30 t Borough Chambers. �.wc+ May � � at � • p.m. in the Borough Assembly l.nambers. The Board of Equalization will hold a meeting on Tuesday, May 15 at 7:30 p.m. in the Borough Assembly Chambers. Kodiak Island Borough Assembly Minutes May 3, 2007 Page 5 ADJOURNMENT WILLIAMS moved to adjourn the meeting, seconded by BRANSON. ROLL CALL VOTE ON MOTION: Oswalt, Williams, Abell, Branson, Friend, Jeffrey The meeting adjourned at 8:47 p.m. ATTEST: Jerome M. Selby, Mayor Nova M. Javier, CMC, Borough Clerk Approved: Kodiak Island Borough Assembly Minutes May 3, 2007 Page 6 ECONOMIC DEVELOPMENT SPECIALIST REPORT Kodiak Island Borough June 7, 2007 Comprehensive Economic Development Strategy (CEDS): Each year the CEDS document is updated and reviewed by the CEDS Committee. I also met with the village representatives at the recent Rural Leadership Forum to review the document and gather information for the revision. Once the resolutions are received from the City of Kodiak, Kodiak Island Borough and Kodiak Chamber of Commerce the updated document will be forwarded to US Dept of Commerce EDA by July 2007. In order for communities to receive federal funding, they are required to include their Capital Improvements Projects list in the CEDS. The Chamber continues to host quarterly "theme" CEDS committee meetings. Our most recent topics of discussion included air transportation issues, community healthcare, community planning, the United States Coast Guard, and education. Kodiak.orq Website Revision — Plans are underway for a major revision to the kodiak.org website. Consideration is being given to provide web advertising opportunities to members of both the Chamber and the Kodiak Island Convention and Visitors Bureau. Since January 2007 we are averaging over 2000 visits per day to the website. Southwest Alaska Municipal Conference: Deb King continues to serve on the Southwest Alaska Municipal Conference (SWAMC) board of directors. The staff, in conjunction with Northern Economics, has completed the Seafood Harvesting Labor Data Project. The project is designed to develop a 5- year database of seafood harvesting labor data for state and federal waters. Future projects include the Southwest Alaska Rural Energy Project, Project for Environmental Preservation in Southwest Alaska, and Seafood Supply Chain Analysis. Foreign Trade Zone Activation — Annual reports are submitted to the National Association of Foreign Trade Zones. We worked with Vern Chase, Alaska- Northwest Development Services and Lynden Transport on the preparation of a FTZ operations manual, a requirement for site activation. The manual was completed and submitted to the NAFTZ. As of November 26 2004 the FTZ site #232 at Pier II has been officially activated. Kodiak Branding and Marketing Committee: Works continues with the Kodiak Branding and Marketing Committee and the "Star of Kodiak" Quality Assurance Program. The Star of Kodiak video produced by Dave Kaplan, Kodiak Resource Development, has been used to promote the program and Kodiak wild salmon at numerous events. We received funding from the Alaska Fisheries Marketing Board and from the Kodiak Island Borough to continue the program. Recent Star of Kodiak events include participation in the Colorado Tourism Convention, 1st Salmon of the Season Celebration, and Taste of Alaska Media Roadshow in New York. This month we will be sponsoring this year's 1 Salmon of the Season Celebration, hosting a reception for a Chinese TV crew, and attending the Global Food Alaska Expo in Soldotna. Tourism AMHS Project: Together with Quentin Fong, Fisheries Industrial Technology Center and Pam Foreman, Kodiak Island Convention and Visitors Bureau, we are working on a follow - up to a project to that measured visitor satisfaction of passengers exiting the island via the ferry system in 2005. Funding for the project has been secured from the Alaska Marine Highway System and the Marine Advisory Program, University of Alaska Fairbanks. Kodiak College Advisory Council: Deb King continues to participate as the president of the Kodiak College Local Advisory Council, which meets on a monthly basis. The Local Advisory Council participated in the development of the College Facilities Master Plan, Showcase for Excellence and Commencement. Input from the groups helped shape the focus and strategy of the College. GOA Groundfish Taskforce: In March 2006, the Chamber facilitated the first of many meetings of the GOA Groundfish Taskforce. Representatives from all facets of the industry were invited to participate in the meetings. It is the purpose of the Kodiak City /KIB GOA Groundfish Task Force to work toward a community consensus regarding what is best for the Kodiak Island community and GOA groundfish fishery in the context of the NPFMC considering a rationalization (motion plan) for GOA groundfish. Given the change in state government and the potential changes in the NPFMC, a decision was made to recommend the "stand- down" option and to regroup after the election. The group felt it was still important to identify key issues of consensus within the community and list areas that are still problematic. The committee has reconvened under the name of Kodiak Fisheries Task Force with two identified purposes: a. To provide recommendations, when appropriate, to the Kodiak City Council and the Kodiak Island Borough Assembly regarding the Kodiak community's position on fisheries issues. b. To provide a forum for representatives of community interest groups to discuss, and, to the degree possible, reach consensus on fisheries issues affecting Kodiak's fishermen, processors, businesses and residents. CHANGES IN THE AREA ECONOMY SEAFOOD (2006 Data Available in early July) 400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 Commercial Seafood Harvest Value & Volume Port of Kodiak 1990 - 2005 v n m n • 07 ▪ ▪ n s n A 0 07 Source: National Marine Fisheries Service +Total lbs. (mil.) —a —Total $ (mil. N N N N N N Kodiak remains one of the top three fishing ports in the USA in terms of value and volume of fish landed. In 2005, 366.3 million pounds were landed at a value of $95.2 million compared to 2004 when 317.4 million pounds of fish were landed with a value of $94 million. Although groundfish landings are expected to increase over the next two or three years, prospects continue to appear competitive for Alaska's salmon industry because of the large supply of farmed salmon in the world salmon markets. The expansion of the farmed salmon market has led to a decrease in the value of salmon permits and a lesser demand for the more expensive "wild" grown product. Kodiak's Top Employers — 2005 Name Employment 1 Kodiak Island Borough School District 441 2 Trident Seafood Group 257 3 Ocean Beauty Seafoods 201 4 North Pacific Seafoods, Inc. 194 5 International Seafoods 182 6 City of Kodiak 159 7 Global Seafoods 132 8 Safeway Inc. 129 9 Kodiak Area Native Association 128 10 Sisters of Providence 124 11 WaI -Mart Associates 123 11 Homeland Security 123 13 University of Alaska Anchorage 84 14 Alaska Department of Fish & Game 74 15 Whitestone Logging Inc. 67 16 Ki Enterprises (McDonald's) 66 17 Seafreeze Alaska LP 63 18 Kodiak Salmon Packers Inc. 56 19 Brechan Enterprises 52 20 Ocean Peace Inc. 50 EMPLOYMENT Kodiak's average annual unemployment rate in 2006 decreased to 7.7% from 8.4% reported in 2005. The number of jobs increased slightly to 5597 from 5514 in the previous year. The size of the active work force increased to 6062 from 6011 in 2005. The unemployment rates for 2006 went from a low of 5.6% in July to a high of 12 % during December. These wide fluctuations in employment continue to be a challenge for the community. Notes: USCG and commercial fishermen are not included. Cost of Living Several studies exist for the purpose of comparing the cost of living between cities in Alaska and around the country. Because of differences in methodologies used to determine cost of living statistics, each survey shows a different result when comparing costs between locations. Comparative Cost of Living 1st Quarter 2007 ACCRA Survey 150 - 140 - 132 134.5 130 - 122.7 126.1 120 - 110 - 100 100 - 90 - 80 Kodiak Anchorage Fairbanks Juneau Nat'l Ave. In the American Chamber of Commerce Researchers Association (ACCRA) cost of living study, a standardized list of 59 items is priced during a fixed period of time. The average price data for each reporting city is then converted into an index number which is used for comparative purposes. The data compares approximately 300 urban areas. It does not take into account local tax burden or income levels, and is only intended as a comparison of prices relative to a national average. Four Alaskan cities are included in the most recently published ACCRA study: Anchorage, Juneau, Fairbanks, and Kodiak. POPULATION According to the Alaska Department of Labor, the estimated 2006 population of the Kodiak Island Borough is 13,506, going down slightly from the estimated 2005 population of 13,638. Population has remained virtually steady since 1996 when the estimated population was 14,058. 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Kodiak Island Borough Population 1987 -2006 II 11 11111111011111 �il�� q;‘ �� o� °j� o°� 411 43 9 c r 9 43 A 0 0 1 9 4b 9 43 � � � � O Ok � it? O oh 06 s ^ ^ �. ^ 'Y ti 'Y V ti ti ti Source: AK Dept of Conruniry & Econonic Development School population has remained virtually steady over the last 2 years (2650) with a slight increase in population in the village schools. BANK DEPOSITS Bank deposits have risen approximately 4% from last year to approximately $141 million. This includes deposits from Kodiak's three commercial banks. Because this is a "snapshot" taken on June 30th of each year, it may not accurately reflect the economic situation brought about by the variability of the salmon season. SALES Gross sales receipts increased by 4.5 %, going from just over $337 million in 2005 to over $352 million in 2006. Retail sales to consumers decreased slightly going from approximately $143.7 million in 2005 to $143.0 million in 2006. $110,000,000 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 City of Kodiak Total Sales Receipts 1st quarter 1994 to 4th quarter 2006 ��v � � -te �_ ' . A ar a �:P- - quarterly receipts —4 quarter average 0 0 CO 0! 0) 0 0) 00) 0 0 0 0 0 0 0 0 CO 0 Cr Cr Q Q Cr Cr Q Q Q a Q a Cr Cr C c Q Q CO M C/1 'q M 1/1 11- M N - ' Or/ N ' ' PROPERTY VALUES Property assessments have increased from last year due to new construction and other property just now becoming taxable. A consistent pattern of reappraisals, and the standardization and increased quality of both the real and personal property rolls has continued. Taxable value of real and personal property for FY2007 is $809,236,402 an increase of $10,320,453 (1.3 %) over FY2006's value of $798,915,949. Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Ordinance No. FY2008 -01 Item No. 9.A Ordinance No. FY2008 -01 Levying Taxes on All Taxable Real and Personal Property Within the Kodiak Island Borough for the Expenses and Liabilities of the Kodiak Island Borough for the Fiscal Year Commencing on the First Day of July 2007 and Ending on the Thirtieth Day of June 2008. (Fiscal Year 2008 Budget) This includes funds to be spent in the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, and Enterprise Funds. This ordinance also levies a tax on the real and personal property within the borough as well as upon natural resources extracted and removed from the Borough. Fiscal Notes: Recommended motion: Move to adopt Ordinance No. FY2008 -01. SUBSTITUTED VERSION Section 2: Section 3: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2008 -01 Introduced by: Manager Gifford Drafted by: Finance Director Introduced: May 17, 2007 Public Hearing: May 17, 2007 Public Hearing: June 7, 2007 Amended: Adopted: AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH LEVYING TAXES ON ALL TAXABLE REAL AND PERSONAL PROPERTY WITHIN THE KODIAK ISLAND BOROUGH FOR THE EXPENSES AND LIABILITIES OF THE KODIAK ISLAND BOROUGH FOR THE FISCAL YEAR COMMENCING ON THE FIRST DAY OF JULY 2007 AND ENDING ON THE THIRTIETH DAY OF JUNE 2008 (FISCAL YEAR 2008 BUDGET) NOW, THEREFORE, BE IT ORDAINED BY THE KODIAK ISLAND BOROUGH ASSEMBLY THAT: Section 1: This ordinance is not of general application and shall not be codified. The following sums of money, or as much thereof as may be authorized by law, as may be needed or deemed necessary to defray all expenses and liabilities of the Kodiak Island Borough, be and the same, is hereby appropriated for municipal purposes and objects of the Kodiak Island Borough and other taxing entities hereinafter specified for the fiscal year commencing on the first day of July 2007 and ending on the thirtieth day of June 2008. Adoption of this ordinance recognizes that funds are appropriated at department and /or project level. Compositions of these figures are as delineated in the full detail budget document. The full document is available to all elected and appointed officials for their use. Copies may be reviewed by interested citizens at the Borough Building during normal working hours and also at the A. Holmes Johnson, Chiniak, and village public libraries during their normal operating hours. Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 1 of 7 SUBSTITUTED VERSION A. General Fund (100) Revenues Taxes Real Property Personal Property Non ad valorem taxes Payment in lieu of tax€ Severance Taxes Penalties & Interest on Licenses & Permits Intergovernmental Investments Earnings Other Use of Fund Balance Total General Fund Revenues 100.00% 43 14,310,026 Expenditures FTE 57.16% 7.87% 2.05% 6-93% 7.03% 1.30% 0.68-% 9.83% 2.06% 0.11 3.78% Percentage 53.90% 7,719,670 7,712,540 7.41% 1,060,170 1,060,470 1.93% 276,450 5.69% 814,000 8.88% 1,070,530 1,270,530 1.22% 175,000 0.64% 91,500 13.27% 1,328,075 1,899,361 2.80% 400,000 0.39% 55,200 3.88% 51 -0,959 554,975 Legislative 1.27% 1.26% 1- 71,340 180,910 Personnel Services 24600 31,200 Fringe Benefits 6,710 Lobbyist 70,000 Support Services 73,000 Borough Management 2 2.77% 2.61% 373,985 Personnel Services 225,770 Fringe Benefits 123,720 Support Services 44,495 Allocated (20,000) Borough Clerk 3 2.05% 2.78% 398,510 Personnel Services 169,380 Fringe Benefits 116,800 Support Services 112,330 Legal Services 0.10% 0.91% 130,000 Cost of Litigation 120,000 Support Services 10,000 Finance /Accounting 7 5.n% 4.89% 699,788 Personnel Services 410,120 Fringe Benefits 229,298 Support Services 98,180 Allocated to Projects (37,810) Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 2 of 7 SUBSTITUTED VERSION Finance /MIS 3 3494% Personnel Services 201,900 Fringe Benefits 120,860 Contracted Services 13,000 Support Services 275,160 Capital Outlay 7,500 Allocated (87,000) Assessing 4 3.23-% Personnel Services 263,560 Fringe Benefits 142,940 Support Services 42,864 Allocated to other funds (13,000) Engineering /Facilities 2 083% Personnel Services 52,840 Fringe Benefits 29,210 Professional Services 25,700 Support Services 53,682 Allocated to Projects (50,000) Community Development 5 5-:55% Personnel Services 371,930 Fringe Benefits 196,270 Professional Services 110,000 Support Services 7-49.1 -0 83,310 Allocated to Projects (3,700) Building Inspectors 0.98% Contracted Services 125,000 Support Goods and Services 7,765 Economic Development 0,56° Professional Services 22,000 Contributions 48,000 Support Goods & Services 5,000 General Administration 2.40% Personnel Services 500 Audit Expense 96,000 Contracted Services 30,000 Support Services 172,670 Capital Outlay 25,000 3.71% 531,420 3.05% 436,364 0.78% 111,432 5.30% 710,110 757,810 0.93% 132,765 0.52% 75,000 2.27% 324,170 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 3 of 7 SUBSTITUTED VERSION Emergency Preparedness 00 0.06% 8,800 Support Services 8,800 Capital Outlay Education Support 65.87% 67.52% 8,895900 9,662,622 Professional Services 456,350 Audit Expense 37,000 Support Goods and Services 122,000 Operating Transfers 879650 9,047,272 Health & Social Services 44.1_% 1.59% 217,620 227,620 Contributions 217620 227,620 Animal Control 4,544 0.51% 72,380 Contracted Services 72,380 Education, Culture & Recreation (1,5744 0.61 % 77,000 87,000 Contributions 7-7000 87,000 College and Libraries 0.69-% 0.65% 93,000 Contributions 93,000 Transfers Out 0.05% 0.05% 6,450 Transfers 6,450 B. Total General Fund Expenditures 43,604 14,310,026 Special Revenue Funds (Revenues and Expenditures) 1 Child Care Assistance (205) 77,000 3 Land Sales (210) 96,700 4 Buildings & Grounds Fund (220) 791,210 5 Coastal Management (230) 24,000 6 Local Emergency Planning Committee (234) 17,800 7 Women's Bay Road Service Area (240) 125,532 8 Service Area No. 1 (242) 220,000 9 Service Area No. 2 (243) 10 Monashka Bay Road Services Area (244) 43,175 11 Bay View Road Service Area (246) 5,700 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 4 of 7 C. SUBSTITUTED VERSION 12 Fire Protection Area No. 1 (254) 426,500 13 Women's Bay Fire Department (252) 93,010 14 KIB Airport Fire Area (254) 14,230 15 Woodland Acres Street Light Area (260) 6,000 16 Trinity Acres Lighting Dist. (261) 3,800 17 Mission Lake Tide Gate (262) 3,050 18 Trinity Acres Paving Dist. 263) 39,880 19 Kodiak Arts Council (275) 69,460 20 Facilities Fund (276) 2,000,000 21 Tourism Development (277) 4-54)00 50,000 22 Fern Fuller Trust (290) 437,000 Total Special Revenue Funds 4,539,0477 4,544,047 Debt Service Funds (Revenues and Expenditures) 1 Debt Service (300) 3,470,770 2 Debt Service - Other (310) 0 Total Debt Service Funds 3,470,770 D. Capital Project Funds (Revenues and Expenditures) 1 Capital Project - Borough, Various (410) 0 700,000 2 Capital Project - School Bonds, Various (426) 3 Near Island Research Building (426) 4 Capital Projects - State Grants (430) 0 Total Capital Projects Funds 0 700,000 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 5 of 7 SUBSTITUTED VERSION E. Enterprise Funds (Revenues and Expenditures) 1 Solid Waste Disposal Fund (530) 3,926,681 2 Hospital Enterprise Fund (540) 1,660,850 3 Near Island Research Fund (555) 2,105,019 4 911 Service (560) 69,000 Total Enterprise Funds 7,761,550 Total all Funds $ 29,275,771 $ 30,786,393 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 6 of 7 SUBSTITUTED VERSION Section 4: Tax Levy. A tax for the amount specified in the form of a mill levy is hereby levied for the value as of January 1, 2007, to be used for the purposes as specified in the Budget for the Fiscal Year 2008 of the Kodiak Island Borough commencing on the first day of July 2007 and ending on the thirtieth day of June 2008 to defray expenses and liabilities of said entity as enumerated in the applicable budgets. The millage rates by taxing entity are as follows: A. City of Kodiak 2.00 mills* B. Kodiak Island Borough 10.50 mills C. Womens Bay Road Service Area 2.00 mills D. Womens Bay Fire Dept. 1.25 mills E. Bay View Road Service Area 1.00 mills F. Fire Protection Area No. 1 1.50 mills G. Monashka Bay Road Service Area 2.50 mills H. Service Area No. 1 Roads 1.25 mills I. Woodland Acres Street Light Area 0.00 mills J. Service Area No. 2 0.00 mills K. KIB Airport Fire Area 1.25 mills L. Trinity Islands Street Light Service Area .50 mills M. Mission Lake Tide Gate Service Area 1.00 mills *Kodiak City Ordinance Numbers 906 and 908 exempt all personal property from City of Kodiak taxation. Section 5: The tax rate on boats is set at $1 per foot with a minimum of $30. Boats that weigh less than 5 tons are exempt. Section 6: Personal property accounts (not including boats) with an assessed value of $2,500 or less will not be billed. Section 6: Kodiak Island Borough Staff is hereby authorized and directed to effect the necessary line item changes within the limits established above by fund, project, and department to properly monitor, account, and report on the expenditure of these funds. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2007 KODIAK ISLAND BOROUGH ATTEST: Jerome M. Selby, Borough Mayor Nova Javier, CMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 7 of 7 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH LEVYING TAXES ON ALL TAXABLE REAL AND PERSONAL PROPERTY WITHIN THE KODIAK ISLAND BOROUGH FOR THE EXPENSES AND LIABILITIES OF THE KODIAK ISLAND BOROUGH FOR THE FISCAL YEAR COMMENCING ON THE FIRST DAY OF JULY 2007 AND ENDING ON THE THIRTIETH DAY OF JUNE 2008 (FISCAL YEAR 2008 BUDGET) NOW, THEREFORE, BE IT ORDAINED BY THE KODIAK ISLAND BOROUGH ASSEMBLY THAT: Section 1: This ordinance is not of general application and shall not be codified. Section 2: Section 3: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2008 -01 Introduced by: Manager Gifford Drafted by: Finance Director Introduced: May 17, 2007 Public Hearing: May 17, 2007 Public Hearing: June 7, 2007 Amended: Adopted: The following sums of money, or as much thereof as may be authorized by law, as may be needed or deemed necessary to defray all expenses and liabilities of the Kodiak Island Borough, be and the same, is hereby appropriated for municipal purposes and objects of the Kodiak Island Borough and other taxing entities hereinafter specified for the fiscal year commencing on the first day of July 2007 and ending on the thirtieth day of June 2008. Adoption of this ordinance recognizes that funds are appropriated at department and /or project level. Compositions of these figures are as delineated in the full detail budget document. The full document is available to all elected and appointed officials for their use. Copies may be reviewed by interested citizens at the Borough Building during normal working hours and also at the A. Holmes Johnson, Chiniak, and village public libraries during their normal operating hours. Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 1 of 6 A. General Fund (100) Revenues Taxes Real Property 57.16% 7,719,670 Personal Property 7.87% 1,063,020 Non ad valorem taxes 2.05% 276,450 Payment in lieu of taxes 6.03% 814,000 Severance Taxes 7.93% 1,070,530 Penalties & Interest on Tax 1.30% 175,000 Licenses & Permits 0.68% 91,500 Intergovernmental 9.83% 1,328,075 Investments Earnings 2.96% 400,000 Other 0.41% 55,200 Use of Fund Balance 3.78% 510,959 Total General Fund Revenues 100.00% 13,504,404 Expenditures FTE Percentage Legislative 1.27% 171,310 Personnel Services 21,600 Fringe Benefits 6,710 Lobbyist 70,000 Support Services 73,000 Borough Management 2 2.77% 373,985 Personnel Services 225,770 Fringe Benefits 123,720 Support Services 44,495 Allocated (20,000) Borough Clerk 3 2.95% 398,510 Personnel Services 169,380 Fringe Benefits 116,800 Support Services 112,330 Legal Services 0.96% 130,000 Cost of Litigation 120,000 Support Services 10,000 Finance /Accounting 7 5.18% 699,788 Personnel Services 410,120 Fringe Benefits 229,298 Support Services 98,180 Allocated to Projects (7 R1n) Allocated to Projects v � , . Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 2 of 6 Finance /MIS 3 3.94% 531,420 Personnel Services 201,900 Fringe Benefits 120,860 Contracted Services 13,000 Support Services 275,160 Capital Outlay 7,500 Allocated (87,000) Assessing 4 3.23% 436,364 Personnel Services 263,560 Fringe Benefits 142,940 Support Services 42,864 Allocated to other funds (13,000) Engineering /Facilities 2 0.83% 111,432 Personnel Services 52,840 Fringe Benefits 29,210 Professional Services 25,700 Support Services 53,682 Allocated to Projects (50,000) Community Development 5 5.55% 749,410 Personnel Services 371,930 Fringe Benefits 196,270 Professional Services 110,000 Support Services 74,910 Allocated to Projects (3,700) Building Inspectors 0.98% 132,765 Contracted Services 125,000 Support Goods and Services 7,765 Economic Development 0.56% 75,000 Professional Services 22,000 Contributions 48,000 Support Goods & Services 5,000 General Administration 2.40% 324,170 Personnel Services 500 Audit Expense 96,000 Contracted Services 30,000 Support Services 172,670 Capital Outlay 25,000 Emergency Preparedness 0.07% 8,800 Support Services 8,800 Capital Outlay Education Support 65.87% 8,895,000 Professional Services 456,350 Audit Expense 37,000 Support Goods and Services 122,000 Operating Transfers 8,279,650 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 3 of 6 Health & Social Services Contributions Animal Control Contracted Services Education, Culture & Recreation Contributions College and Libraries Contributions Transfers Out Transfers 6,450 B. 217,620 72,380 77,000 93,000 1.61% 217,620 72,380 0.57% 77,000 0.69% 93,000 0.05% 6,450 Total General Fund Expenditures 13,504,404 Special Revenue Funds (Revenues and Expenditures) 1 Child Care Assistance (205) 77,000 3 Land Sales (210) 96,700 4 Buildings & Grounds Fund (220) 791,210 5 Coastal Management (230) 24,000 6 Local Emergency Planning Committee (234) 17,800 7 Women's Bay Road Service Area (240) 125,532 8 Service Area No. 1 (242) 220,000 9 Service Area No. 2 (243) 10 Monashka Bay Road Services Area (244) 43,175 11 Bay View Road Service Area (246) 5,700 12 Fire Protection Area No. 1 (254) 426,500 13 Women's Bay Fire Department (252) 93,010 14 KIB Airport Fire Area (254) 14,230 15 Woodland Acres Street Light Area (260) 6,000 16 Trinity Acres Lighting Dist. (261) 3,800 17 Mission Lake Tide Gate (262) 3,050 18 Trinity Acres Paving Dist. 263) 39,880 19 Kodiak Arts Council (275) 69,460 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 4 of 6 C. 20 Facilities Fund (276) 2,000,000 21 Tourism Development (277) 45,000 22 Fern Fuller Trust (290) 437,000 Total Special Revenue Funds 4,539,047 Debt Service Funds (Revenues and Expenditures) 1 Debt Service (300) 3,470,770 2 Debt Service - Other (310) 0 Total Debt Service Funds 3,470,770 D. Capital Project Funds (Revenues and Expenditures) 1 Capital Project - Borough, Various (410) 2 Capital Project - School Bonds, Various (426) 3 Near Island Research Building (426) 4 Capital Projects - State Grants (430) 0 Total Capital Projects Funds 0 E. Enterprise Funds (Revenues and Expenditures) 1 Solid Waste Disposal Fund (530) 3,926,681 2 Hospital Enterprise Fund (540) 1,660,850 3 Near Island Research Fund (555) 2,105,019 4 911 Service (560) 69,000 Total Enterprise Funds 7,761,550 Total all Funds $ 29,275,771 Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 5 of 6 Section 4: Tax Levy. A tax for the amount specified in the form of a mill levy is hereby levied for the value as of January 1, 2007, to be used for the purposes as specified in the Budget for the Fiscal Year 2008 of the Kodiak Island Borough commencing on the first day of July 2007 and ending on the thirtieth day of June 2008 to defray expenses and liabilities of said entity as enumerated in the applicable budgets. The millage rates by taxing entity are as follows: A. City of Kodiak 2.00 mills* B. Kodiak Island Borough 10.50 mills C. Womens Bay Road Service Area 2.00 mills D. Womens Bay Fire Dept. 1.25 mills E. Bay View Road Service Area 1.00 mills F. Fire Protection Area No. 1 1.50 mills G. Monashka Bay Road Service Area 2.50 mills H. Service Area No. 1 Roads 1.25 mills I. Woodland Acres Street Light Area 0.00 mills J. Service Area No. 2 0.00 mills K. KIB Airport Fire Area 1.25 mills L. Trinity Islands Street Light Service Area .50 mills M. Mission Lake Tide Gate Service Area 1.00 mills *Kodiak City Ordinance Numbers 906 and 908 exempt all personal property from City of Kodiak taxation. Section 5: The tax rate on boats is set at $1 per foot with a minimum of $30. Boats that weigh Tess than 5 tons are exempt. Section 6: Personal property accounts (not including boats) with an assessed value of $2,500 or less will not be billed. Section 6: Kodiak Island Borough Staff is hereby authorized and directed to effect the necessary line item changes within the limits established above by fund, project, and department to properly monitor, account, and report on the expenditure of these funds. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 2007 ATTEST: Jerome M. Selby, Borough Mayor Nova Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Kodiak Island Borough, Alaska Ordinance No. FY2008 -01 Page 6 of 6 Kodiak Island Borough AGENDA STATEMENT Regular Meeting of June 7, 2007 KIBC 3.24 addresses Personal Property Tax; guidelines. Item No. 9.B Ordinance No. FY2007 -16 Amending Title 3 Revenue and Finance, Chapter 3.24 Personal Property Tax to Add Section 3.24.090 Personal Property Minimum Billing The Borough Manager and Finance Director feel it is prudent that the tax on personal property accounts (not including boats) with a low assessed value not be billed. This threshold amount should be included in the annual Borough budget adoption process. Borough legal counsel has advised management that this process requires a change to borough code. Therefore, Title 3 Revenue and Finance Chapter 3.24 Personal Property Tax Section 3.24.090 Personal Property Minimum Billing should be added as follows: 3.24.090 Personal property minimum billing. Only personal property accounts (not including boats) with a value greater than the amount listed in the annual budget will be billed. This change is being made pursuant to AS 29.45.050(D)(2) which states "A municipality may by ordinance classify as to type and exempt or partially exempt some or all types of personal property from ad valorem taxes." For FY2008 staff is recommending the minimum assessed value exceed $2,500 to generate a personal property tax bill. Recommended motio . Move to adopt Ordinance No. FY2007 -16. KODIAK ISLAND BOROUGH ORDINANCE NO. FY2007 -16 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING TITLE 3 REVENUE AND FINANCE, CHAPTER 3.24 PERSONAL PROPERTY TAX TO ADD SECTION 3.24.090 PERSONAL PROPERTY MINIMUM BILLING WHEREAS, KIBC 3.24 addresses Personal Property Tax; and WHEREAS, the Borough Manager and Finance Director feel it is prudent that the tax on personal property accounts (not including boats) with a low assessed value not be billed. This threshold amount should be included in the annual Borough budget adoption process; and WHEREAS, the Borough Attorney has advised management that this process requires a change to borough code; and 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; Section 2: Title 3 Revenue and Finance Chapter 3.24 Personal Property Tax is hereby amended by adding Section 3.24.090 Personal Property Minimum Billing as follows: Chapter 3.24 PERSONAL PROPERTY TAX Sections: 3.24.010 Assessment return. 3.24.015 Tax situs of personal property. 3.24.020 Liability for and collection of. 3.24.030 Penalties. 3.24.050 Classification of boats and vessels. 3.24.060 Business inventories exempt. 3.24.070 Household furniture and effects exempt. 3.24.080 Commercial fishing gear exempt. 3.24.090 Personal property minimum billing. Introduced by: ManagerGifford Requested by: Finance Department Drafted by: Finance Department Introduced: May 17, 2007 Public Hearing: June 7, 2007 Adopted: Kodiak Island Borough, Alaska Ordinance No. FY2007 -16 Page 1 of 2 3.24.090 Personal Property Minimum Billing. Pursuant to AS 29.45.050(d2), only personal property accounts (not including boats) with a value greater than the amount listed on the annual budget ordinance will be billed. ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2006 Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor Kodiak Island Borough, Alaska Ordinance No. FY2007 -16 Page 2 of 2 Fiscal Notes: ❑ n/a Account No. 420 515 and 410 531 452 150 452 150 07015 6 05011 6 Expenditure Required: $ ❑ n/a Amount Budgeted: 1 ❑ n/a Regular Meeting of June 7, 2007 Brechan Enterprises, Inc. Commercial Contractors, Inc. Northwest Carpet Company, LLC Kodiak Island Borough AGENDA STATEMENT Floor Covering Replacement at Kodiak Schools in an Amount Not to Exceed $190,688.00. Kodiak Island 3.16.020 "Limitation on Manager's Authority" states that a contract exceeding $25,000 requires Assembly approval. This contract is for the removal and replacement of flooring at Main Elementary School and the KHS Kitchen. The funding for flooring replacement at Main Elementary is included in a Bond Project for Floor Covering for Four Schools. The KHS Kitchen flooring replacement is to be funded by a KIB Capital Projects Fund — the High School roof replacement project that was completed under budget and was funded through a 2000 bond sale. Bids received in response to KIB's Invitation to Bid dated April 2007 are: $459,294.00 $196,894.00 $190,688.00 Item No. 13.A.1 Contract No. 2007 -46 References for Northwest Carpeting Company, LLC were checked and found to be very positive. In accordance with KIB Code, Northwest Carpeting Company, LLC is the low and responsible Bidder. Recommended motion: Move to authorize the manager to execute Contract No. FY2007 -46 with Northwest Carpeting Company, LLC of Eagle River, Alaska in the amount not to exceed $190,688.00 Memorandum To: Rick Gifford CC: Bud Cassidy From: Woody K g Date: 5/24/2007 Re: Floor Covering Replacement Contract See attached back -up for the agenda statement: 1. IFB 2. 3 responsive bids 3. Standard agreement 4. Notice of Intent to Award As we discussed earlier, we recommend awarding both additive alternates which is reflected in the bid amounts on the agenda statement. In accordance with grant requirements, we must provide a ten day protest period after Intent to Award which period ends 6 -1 -07 (between the work session of 5- 31-07 and the 6 -7 -07 regular meeting). This motion would authorize the manager to execute the contract. However, if a protest were to arise and not be resolved prior to the regular meeting, the agenda item could be deleted, tabled, or whatever action is appropriate. I just don't want to let this one slip to the 6 -21 -07 regular meeting for authority to execute this contract. We could loose the window. 1 KODIAK ISLAND BOROUGH 710 MILL BAY ROAD KODIAK, AK 99615 -6398 To: Northwest Carpet Company, LLC 12111 Horseshoe Drive, Suite 104 Eagle River, AK 99577 NOTICE OF INTENT TO AWARD Re: Floor Covering Replacement at Kodiak Schools The Owner has considered the bid submitted by you for the above - described work in response to its Notice Inviting Bids dated April 2007. You are hereby notified that your proposal has been accepted. However, please be advised that this Notice of Intent does not obligate the Borough. KIB does not enter into a legal binding agreement until an Agreement has been signed and received administrative or Assembly approval. DEED requirements dictate a 10 day protest period beginning the date of the Notice of Intent to Award. At the end of that period you are required to execute an Agreement and furnish the required certificates of insurance, a Payment Bond, a Performance Bond and Proof of Workers' Compensation. If you fail to execute said Agreement and furnish said certificates of insurance within ten (10) days from the date of this Notice, said Owner will be entitled to consider all your rights arising out of the Owners acceptance of your bid to be abandoned. The Owner will be entitled to such other rights as may be granted by law. You are required to eturn an acknowledged copy of this Notice of Intent to Award to the Owner. Dated this __ day of May 2007. B ATTEST: Rick L. g ord Borou_ Manager r"Th l Nov M. Javier, CM '�i _/ 4 seciA * \ \dove \Departments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Contracts \Notice of Intent to Award.doc Page 1 of 2 ACCEPTANCE OF INTENT TO AWARD Receipt of the foregoing Notice of Intent to Award is hereby acknowledged. By: Dated this day of May 2007. By: Title: \ \dove \Departments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Contracts \Notice of Intent to Award.doc Page 2 of 2 INVITATION FOR BIDS The KODIAK ISLAND BOROUGH will receive sealed bids until 2:00 pm (local time), Wednesday, 3 May 2006, for the Gym Floor Removal and Replacement at North Star Elementary School, Kodiak, Alaska. All work to be done under one Contractor as described in the Scope of Work. The work must be performed beginning no earlier than 1 June 2006 and ending 15 August 2006. Equal employment opportunity requirements prevail. The Kodiak Island Borough reserves the right to reject or accept any or all bids, to waive irregularities or informalities in the bid or in the bidding, and to give particular attention to the qualifications of the Bidder. The attention of Bidders is directed to the applicable Federal and State requirements and conditions of employment to be observed and minimum wage rates to be paid under the Contract. All bids shall be accompanied by a bid bond, certified check, cashier check or money order in the amount of not less than five percent (5 %) of the total amount bid. Bid bonds shall be in a form satisfactory to the Kodiak Island Borough. There will be a mandatory pre -bid conference in the Assembly Chambers, Borough Building, 710 Mill Bay Road, Kodiak, Alaska, on Thursday, 27 April 2006 starting at 2:00 pm local time. All potential bidders are required to attend this conference. Bid documents online at our website www.kib.co.kodiak.ak.us Contact Person Ken Smith, Project Manager /Inspector Engineering/Facilities Department Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 -6398 Phone: (907) 486 -9349 Fax: (907) 486 -9347 ksmith@kib.co.kodiak.ak.us \ \dove \Departments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Bid Documents \RFQ Gym Floor North Star.doc Page 3 of 62 Bid Package available 14 April 2006 Submit bids to: Office of the Borough Manager — Room 125 Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 -6398 Bids will be RECEIVED ONLY IN THE BOROUGH MANAGER'S OFFICE and only until the time stated above, at which time they will be publicly opened and read aloud. Bids received after the time stated above will be returned unopened. Bid envelopes must be clearly marked Gym Floor North Star Elementary. Bidding closes: 2:00 pm (local time), Wednesday 3 May 2006 Rick Gifford Borough Manager Publish: Kodiak Daily Mirror 14, 21 and 24 April 2006 Anchorage Daily News 14, 21 and 24 April 2006 \ \dove \Departments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Bid Documents \RFQ Gym Floor North Star.doc Page 4 of 62 Brechan Enterprises, Inc. 2705 Mill Bay Road Kodiak, Alaska 99615 BRECHAN ENTERPRISES. INC GENERAL CONTRACTORS Bid Proposal Packet For Kodiak Island Borough Engineering/Facilities Department 710 Mill Bay Rd. Kodiak, AK 99615 Floor Covering Removal and Replacement Project Brechan Enterprises, Inc. - CoverKodiak Island Borough - Floor Covering Removal and Replacement Project ADDRESS 2705 Mill Bay Rd. Kodiak, AK 99615 PROPOSAL of NAME OF CONTRACTOR Brechan Enterprises, Inc. To the Borough Manager of the Kodiak Island Borough: The Undersigned proposes to furnish all labor and materials required in the Floor Covering Removal and Replacement Project located within Kodiak Island Borough, Alaska, according to the contract documents therefore and for the amount and prices named herein as indicated on the Bid Schedule herein contained which is made a part of this Proposal. The Undersigned declares the only person or parties interested in the proposal as principals are those named herein; and the proposal is made without collusion with any person, firm or corporation; that he has carefully examined the specifications; and General Provisions and that he has made a personal examination of the site of the work (as required by KIB Certificate of Attendance) and that he is to furnish all labor and equipment specified in the manner and the time prescribed. The Undersigned hereby agrees to execute all documents required by the Instruction to Bidders within 10 days or such further time as may be allowed in writing by the Borough Manager after receiving written notification of the Intent to Award, and it is hereby mutually understood and agreed that in case we do not, we forfeit the accompanying check or bid bond to the Kodiak Island Borough as liquidated damages, and the said Borough Manager may proceed to award the contract to others. Written notice of Intent to Award will be mailed, or otherwise furnished, within ten (10) calendar days after opening of bids. We hereby agree to commence the work within ten (10) days after receipt of the Notice to Proceed, or such further time as may be allowed in writing by the Borough Manager and to be completed in accordance with the final completion deadline set forth in the Scopes of Work. The Undersigned shall sign a Contract containing a liquidated damage clause and other requirements as stated by law, the liquidated damage clause shall be One Hundred Dollars ($100.00) per each calendar day after contract completion. This Unrlrersignerl proposes to furnish P Bond thc amount o f 50% of the This �- __ � =� =b = =� proposes to �u,�.,�., a ■ u =.��..� Bond in u rn amount Vl JV /o Vl U1G Colllract $ 459,294.00 and a Performance Bond in the amount of 50% of the contract $ 459,294.00 as surety conditioned for the full, complete and faithful performance of this contract and to indemnify and save harmless the Kodiak Island Borough from any damage or loss for which the Kodiak Island Borough may become liable by the default of Undersigned, or by reason of any neglect or carelessness on the part of Undersigned, his agents or employees or by or on account of any act of omission of Undersigned, his servants, agents, or employees in performance of this contract. \ \doveADepartments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacernent \Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 23 of 66 The Undersigned proposes to guarantee all work performed under the Drawings, Specifications, and Contract, and repair and maintain the same until the date of acceptance by the Borough Manager and one year thereafter or until the expiration of such other guarantees as may be provided by the Contract Documents. The Undersigned acknowledges receipt of the following addenda to the drawings and/or specifications (Give number and date each. If not received, write in the word "NONE "). ADDENDA DATE ISSUED ADDENDA DATE ISSUED Addendum #1 Signature: Date: Title: Address: 4 May 2007 4. Bid Schedule. (see attached) 11 April 2007 Chief Financial Officer 2705 Mill Bay Rd. Kodiak, AK 99615 Addendum #2 20 April 07 \ \dove \Departments \FF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 24 of 66 ADDENDUM # 1 11 April 2007 FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS To All Planholders: The addendum item contained herein shall become a part of the Bid Documents titled FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS dated April 2007. Acknowledgement of receipt of each Addendum by Bidders must be submitted on the Bid Proposal form provided in the bid packet at the time of the Bid Opening. Failure to do so may subject Bidder to disqualification. Floor Covering and Replacement at the Kodiak Middle School is removed from this RFQ. The Middle School Floor Covering Replacement will be handled in a separate RFQ in conjunction with an upcoming Seismic Upgrade Project. All other requirements remain the same. Sign and submit with Bid. 1 ontractor * *End of Addendum ** Date \ \Dove \Departments \EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Bid Documents \Addendum #1 11 April 07.doe Sign and submit with Bid. ADDENDUM # 2 20 April 2007 FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS To All Planholders: The addendum item contained herein shall become a part of the Bid Documents titled FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS dated April 2007. Acknowledgement of receipt of each Addendum by Bidders must be submitted on the Bid Proposal form provided in the bid packet at the time of the Bid Opening. Failure to do so may subject Bidder to disqualification. The time scheduled for the Mandatory Pre Bid Conference on 26 April 2007 is changed from 10:00 am to 3:30 pm. All other requirements remain the same. 2 - - - - - / i i niti . 2.-4' O 1 Contractor Date * *End of Addendum ** B:ABids made in 2007 \KIB Floor Replacement \Addendum #2 20 April 07.doc CORPORATE ACKNOWLEDGEMENT (To be filled in when Documents are executed in behalf of a Corporation) UNITED STATES OF AMERICA ) ) ss: STATE OF ALASKA ) The foregoing instrument was acknowledged before me this V' day of r1'la y 2007 by ( Se5501 (Name of Officer) of ofeckan E eret:5es Ino. (Name of Corporation) OFFICIAL SEAL AMY . iU +[; NOTARY PUBLIC -STATE OF ALASKA My Comm. Expires"43 ( CFO , Corporation, on behalf of said Corporation. (Title of Officer) My Commission Expires Mai / 2 ' Z \ \doveA Departments \FF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Bid Documents \RFQ Floor Covering - KMS & Main.doc Pale 22 of 66 Brechan Enterprises, Inc. Contract Documents, will perform: BID SCHEDULE Floor Covering Removal and Replacement Base Bid: Removal, disposal and replacement of floor coverings at Kodiak Middle School and Main Elementary School: Three hundred ninety six thousand ninety nine dollars Additive Alternate #1: 3,600 square feet of tile replacement in Main Elementary Commons and Kitchen area. Forty five thousand seven hundred fifty four dollars Additive Alternate #2: 3,900 square feet of tile replacement in Kodiak Middle School Commons and Kitchen area. Additive Alternate #3: 140 square yards of sheet vinyl in Kodiak High School Kitchen area. Seventeen thousand four hundred forty one dollars dollars $ 396,099.00 dollars $ 45,754.00 dollars $ dollars $ 17,441.00 Date: 4 May 2007 Respectfully submitted: By: Brechan Enterprises, Inc Contracting Firm (Seal if by Corporation) t' ignature Chief Financial Officer Title 2705 Mill Bay Rd. Business Address Kodiak, AK 99615 , in strict conformance with the \ \doveADepartments \EF \Capital Projects \Bond Issue \Projects \Floor Covering Replacement \Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 25 of 66 Date Bond Executed May 4, 2007 Principal Brechan Enterprises, Inc. BID BOND Surety Safeco Insurance Company of America Five Percent (5%) of the Total Amount of Bid May 4, 2007 Penal Sum of Bond (Express in words and figures) Date of Bid KNOW ALL MEN BY THESE PRESENTS, that we, the PRINCIPAL and SURETY above named, are held and firmly bound to the Kodiak Island Borough, hereinafter called the Borough, in the penal sum of the amount stated above, for the payment of which sum well and truly made, we bind ourselves and our legal representatives and successors, jointly and severally, firmly by this instrument. THE CONDITION OF THE FOREGOING OBLIGATION is that the Principal has submitted the accompanying bid or proposal in writing, date as shown above, for Floor Covering Removal and Replacement in accordance with plans and specifications filed in the offices of the Borough and under the invitation for bids therefore, and is required to furnish bond in the amount stated above. If Principal, within the period specified in the Proposal, after receiving written notice of Intent to Award the contract for the project, or any part thereof, enters into a written contract for the performance of the project and executes and delivers to the Borough good and sufficient performance, labor and material bonds, then the foregoing obligation shall be null and void, otherwise it shall remain in full force and effect. The obligation on this bond shall in no event exceed the difference between the amount of the contract, if finally awarded to another Bidder, and the amount bid by Principal on the project. In Presence of: WITNESS INDIVIDUAL PRINCIPAL 1. as to (Seal) 2. as to (Seal) 3. as to (Seal) 4. as to (Seal) \\dove\Departments\EF\Capital Projects \Bond IssueAProjects \Floor Covering Replacement \Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 20 of 66 Safeco Insurance Company of America Brechan Enterprises, Inc. CORPORATE SURETY CORPORATE PRINCIPAL 2233 112th Avenue NE Bellevue, WA 98004 Business Address Attest byt it e,z Karen P. Dever Title: Attorney -in -Fact 2705 Mill Bay Road Kodiak, AK 99615 Business Address Attest ---- Title: e GcD Affix Corporate Seal Affix Corporate Seal The offered Bid Bond has been checked for adequacy under applicable statutes and regulations. Date Contracting Officer Kodiak Island Borough The rate of premium on this bond is - - - o- - - per thousand. Total amount of premium charged,$ - - - o - - (The above must be filled in by Corporate Surety) CERTIFICATE AS TO CORPORATE PRINCIPAL I, , certify that I am the secretary of the corporation named as principal in the within bond; that ,who signed the said bond on behalf of the principal, was then of said corporation; that I know his signature, and his signature thereto is genuine; and that said bond was duly signed, sealed, and attested for in behalf of said corporation by authority of its governing body. CORPORATE SEAL \ \doveADepartments \EF \Capital Projects \Bond IssueAProjects \Floor Covering Replacement \Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 21 of 66 KNOW ALL BY THESE PRESENTS: STEPHANIE DALEY- WATSON.SECRETARY S-0974/DS 4/05 POWER OF ATTORNEY No. 349 Safeco Insurance Companies PO Box 34526 Seattle, WA 98124 -1526 That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint * * * * * * * * * * * * * * * * ** *JILL A. BOYLE; APRIL L. CHAMPAGNE; KAREN P. DEVER; SCOTT FISHER; PETER H. HAMMETT; SUSAN B. LARSON; DEANNA M. MEYER; CARL NEWMAN; STUART A. O'FARRELL; STEPHEN J. WACHTER; Bellevue, Washington; DAVID L. ECKROTH; KAREN A. HUNT; BARBARA R. JOHNSON; MARIE I. MATETICH; CHARLES A. SZOPA; Anchorage, A laska**************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** its true and lawful attorney(s) -in -fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents December 2005 this 16th day of CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: MIKE PETERS. PRESIDENT. SURETY "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the power -of- attorney appointment, executed pursuant thereto, and (iii) Certifying that said power -of- attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Stephanie Daley- Watson , Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By - Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this day of VA (,ti ,+'4 -har rc cit �Ua�cc c�/ • SZ' evF�� STEPHANIE DALEY - WATSON, SECRETARY Safeco® and the Safeco logo are registered trademarks of Safeco Corporation. WEB PDF , ,. . l`�laska Business Licer��,�� F ,,,. ^ ��..�„i ��ii � � . .� *��5.. y T/ J� �('�.i�lt�(� !,`V /`� . . .A. . -� e . _ t.:, : . �,laska ae�artrn�n# of C;omrnerce. Community, and Economic Development C)ivisi��n o1 C�orF��r��t��ns, E'susiness and Professior�al Licensin�a �''a. F�ox � 1�),�Ot� J�.Eneau Alaska �)�3811-0806 1-r;i�� is �� t;ert�fy tf�at �3F��.CHAI� CNTERPRISES INC '?70`� MILL PA`,' RJ/1D, KODIAK Ai� 99615 c?��n.�nc?d by �R�C;f-iAl�I F�JTERPRISF_S INC is lic�nsed ��y ti�e ciet�ar#me�� to conduct busir�ess for the periE�d DE�cember 18, 200C through Decemf�er 31, 2008 fr..,r th�; following line of business ��::'� - Construction i� �� lirF� ns�� S�Za�'� ��cf �.� 1�i4 r as E�F�rmi�,si�in to dr,; business in the state without I�,��in�r c �mF�i�e�i witl� (he r�t��r r�c,uir�lm�nts oo !he laws of the Stata or of the United Stat�s. l�t�iis fi�::�nse mu�st t��e posted ir� r-y c�cm�•;picEi ;i_is place at the business location_ it i�_�� n�t fr�risfer�hl� r� �s� ��nahle. r, •,e, . ''�S Ertril Nntft ��, ,`.R..►x.-: � � t�..,��% � �;nrrrnxis>ro��eF� .,.. v m 7032:: v 0 cD o= v rn FA a. ' � • N ° O 0 W 2 N 53 • r Di) C� N w ° H o Z� � rn, n ° °'� O CD� N � co o —4 °; c St IT' `° mpg Cn ui X CD = a= = CD Q vi r Cl. n- I - _ v o (D 70 O o 9, n CI) cD 22 N O 0 (n (5H, z c ° O CD O o= E (1) 0) °' r 5 Q c v (D — 0 y Z CD o C7 � E m z --1 PROPOSAL of NAME OF CONTRACTOR CO•f2 /,ft- oud -rede /rid / e Y e s°y' ADDRESS 4/e , e L e - '9 7 . '3 To the Borough Manager of the Kodiak Island Borough: The Undersigned proposes to furnish all labor and materials required in the Floor Covering Removal and Replacement Project located within Kodiak Island Borough, Alaska, according to the contract documents therefore and for the amount and prices named herein as indicated on the Bid Schedule herein contained which is made a part of this Proposal. The Undersigned declares the only person or parties interested in the proposal as principals are those named herein; and the proposal is made without collusion with any person, firm or corporation; that he has carefully examined the specifications; and General Provisions and that he has made a personal examination of the site of the work (as required by KIB Certificate of Attendance) and that he is to furnish all labor and equipment specified in the manner and the time prescribed. The Undersigned hereby agrees to execute all documents required by the Instruction to Bidders within 10 days or such further time as may be allowed in writing by the Borough Manager after receiving written notification of the Intent to Award, and it is hereby mutually understood and agreed that in case we do not, we forfeit the accompanying check or bid bond to the Kodiak Island Borough as liquidated damages, and the said Borough Manager may proceed to award the contract to others. Written notice of Intent to Award will be mailed, or otherwise furnished, within ten (10) calendar days after opening of bids. We hereby agree to commence the work within ten (10) days after receipt of the Notice to Proceed, or such further time as may be allowed in writing by the Borough Manager and to be completed in accordance with the final completion deadline set forth in the Scopes of Work. The Undersigned shall sign a Contract containing. a liquidated damage clause and other requirements as stated by law, the liquidated damage clause shall be One Hundred Dollars ($100.00) per each calendar day after contract completion. The Undersigned proposes "to furnish a Payment Bond in the amount of 50% of the contract $ and a Performance Bond in the amount of 50% of the contract $ - as surety conditioned for the full, complete and faithful performance of this contract and to indemnify and save harmless the Kodiak Island Borough from any damage or loss for which the Kodiak Island Borough may become liable by the default of Undersigned, or by reason of any neglect or carelessness on the of Undersigned, his agents or employees or by or on account of any act of omission of Undersigned, his servants, agents, or employees in performance of this contract. ■\dove\Departments\EF\Capital Projects \Bond Issue \Projects\Floor Covering Replacement \Bid Documents \RFQ Floor Covenng- KMS & Main.doc Page 23 of 66 The Undersigned proposes to guarantee all work performed under the Drawings, Specifications, and Contract, and repair and maintain the same until the date of acceptance by the Borough Manager and one year thereafter or until the expiration of such other guarantees as may be provided by the Contract Documents. The Undersigned acknowledges receipt of the following addenda to the drawings and/or specifications (Give number and date each. If not received, write in the word "NONE "). ADDENDA DATE ISSUED ADDENDA DATE ISSUED v/ moo 2-007 Signature: Date: Title: Address: 4. Bid Schedule. (see attached) Mgy / Z__6 9 Qosii� i '9©o s7 09 /vc c2I , 99503 \ \dove\Departments\EF\Capital Projects\Bond Issue\Projects\Floor Covering Replacement\Bid Documents\RFQ Floor Covering - KMS & Main.doc Page 24 of 66 BID SCHEDULE Floor Covering Removal and Replacement ..) ;` , //, 1 It 2 7ZC 2 c Z 6 lrc'. J .--&/. /AIC Contract Documents, will perform: dollars $ 9 '747 dollars $ , in strict conformance with the Base Bid: Removal, disposal and replacement of floor coverings at Kodiak Main Elementary School: C? 1 e- h u/zdtc/ 5 xfy tlZt�ct3r rc �`SC?4'i'�7 ilZiAdred $/x/E'e,7 dollars $ / 7/6 Additive Alternate #1: 3,600 square feet of tile replacement in Main Elementary Commons and Kitchen area. BIZ ✓� /C/? A. . - u . to #2: 3,900 square feet of tile replacement in Kodiak Middle • e : ons and Kitchen area. Additive Alternate #3: 140 square yards of sheet vinyl in Kodiak High School Kitchen area. /l% J e to s a° duct <e c , - zit , dollars $ / 7 9 Date: / tle2 7 Z,©d (Seal if by Corporation) ii-vic C /,',.k C 0 Z- l7�Z C"7c� �.)a � r Respectfully submitted: By: 6 , /4/C Contracting Firm Sign' e c�ey ®77elc:zv Title ygpt PS/2 ,5nx sCS S'T. / n/c e/m c 9.F,5 - 63 Business Address \ \dove\Departments\EF\Capital Projects\Bond Issue\Projects\Floor Covering Replacement\Bid Documents \RFQ Floor Covering - KMS & Main.doc Page 25 of 66 (To be filled in when Documents are executed in behalf of a Corporation) UNITED STATES OF AMERICA ) ) ss: STATE OF ALASKA ) CORPORATE ACKNOWLEDGEMENT The foregoing instrument was acknowledged before me this day of 2007 by kAriKr 14• C/ riG /7 (Name of Officer) (Title of Officer) of 6/1/7070(4L dit)"/L4Can -1 Ave' r (Name of Corporation) , Corporation, on behalf of said Corporation. N tary Public My Commission Expires j \ \dove\Departmcnts\EF \Capital Projects\Bond Issue\Projects\Floor Covering Replacement\Bid Documents\RFQ Floor Covering - KMS & Main.doc Page 22 of 66 U Z 00 co 0 1 0) 0) O Q 0 w Q Q 0 Z o .n 0 z Q U 2 O u) J u) Z U Q CO Of !.1_. Q S W L- 2 O o 2 7r 0 0 Cr) a) 0 0 n 0 0 0) C O O tD L cli a) 0 D O N _C L o 0 v m m o 0 "6 O a) 0 £ co a) .c a) to to Jo N C @ To .fl _ a) O a) O O a O CP 0 w 0 O O - O U E N c 0 C� =c Y L 'J O' @ O a) v> W N a) o M C o a N To "D 0) 2 J L .c a) 'o tv to = E m° m :n z 0 o 0 ;a U N U a) »-. y U U O E E C .0 - S V No. 80 Efftetive: 1 1/22/2006 Exiaires: 12/3 1 /2008 DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT Division of Corporations, Business and Professional Licensing P.O. Box 110806, Juneau, Alaska 99811 -0806 Division of Corporations, Business and Professional Licensing Certifies that COMMERCIAL CONTRACTORS INC Is A Registered General Contractor - Excludes Residential Wallet Card No. 80 State Of Alaska Department of Commerce, Community and Economic Development Division of Corporations, Business and Professional Licensing This Certifies That COMMERCIAL. CONTRACTORS INC Is A Registered General Contractor - Excludes Residential Effective Expiradon 11/22/2006 12/31/2008 Date of Birth Signature NOO STATE OF ALASKA Commissioner: William C. Noll Per 12 AAC 02.900 Licensee shall maintain a current mailing address on tile with this division at all times. If you wish to change to a residential contractor or downgrade to a specialty contractor, a new application is required. Changes to the ownership of the contractor registration (incorporation, addition or deletion of a partner(s)) or a name change requires a new application. Please note all General Contractor licenses expire on December 31 of even - numbered years regardless of the issue date. Website: www. commerce .state.ak.us /occ /pcon.latm 0000 >IV 2OVeJOHONV 1S S>INV82dIVA 00617 ONI S2:10.10 :11N00 1V102:1EWWO0 ive* I I 3 ADDENDUM # 1 AO 1 11 April 2007 FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS To All Planholders: The addendum item contained herein shall become a part of the Bid Documents titled FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS dated April 2007. Acknowledgement of receipt of each Addendum by Bidders must be submitted on the Bid Proposal form provided in the bid packet at the time of the Bid Opening. Failure to do so may subject Bidder to disqualification. Floor Covering and Replacement at the Kodiak Middle School is removed from this RFQ. The Middle School Floor Covering Replacement will be handled in a separate RFQ in conjunction with an upcoming Seismic Upgrade Project. All other requirements remain the same. Sign and submit with Bid. ontractor * *End of Addendum ** 007 Date \\Dove\Departments\EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement\Bid Documents\Addendum #1 11 April 07.doc Sign and submit with Bid. ADDENDUM # 2 20 April 2007 FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS To All Planholders: The addendum item contained herein shall become a part of the Bid Documents titled FLOOR COVERING REPLACEMENT AT KODIAK SCHOOLS dated April 2007. Acknowledgement of receipt of each Addendum by Bidders must be submitted on the Bid Proposal form provided in the bid packet at the time of the Bid Opening. Failure to do so may subject Bidder to disqualification. The time scheduled for the Mandatory Pre Bid Conference on 26 April 2007 is changed from 10:00 am to 3:30 pm. All other requirements remain the same. :Co > ►tractor Date * *End of Addendum* * C:\Documents and Settings \mary.THEPLANSROOM\Local Settings \Temporary Internet Files \Content.1E5 \4L6ZK9UB\Addendum #2 20 April 07.doc � 1 65 c 1 v � Actio9 Date Bond Executed May 4, 2007 BID BOND Principal Commercial Contractors, Inc., 4900 Fairbanks Street, Anchorage, AK 99503 Surety First National Insurance Company of America, Safeco Plaza, Seattle, WA 98185 Five Percent (5 %) of Bid Amount May 4, 2007 Penal Sum of Bond (Express in words and figures) Date of Bid KNOW ALL MEN BY THESE PRESENTS, that we, the PRINCIPAL and SURETY above named, are held and firmly bound to the Kodiak Island Borough, hereinafter called the Borough, in the penal sum of the amount stated above, for the payment of which sum well and truly made, we bind ourselves and our legal representatives and successors, jointly and severally, firmly by this instrument. THE CONDITION OF THE FOREGOING OBLIGATION is that the Principal has submitted the accompanying bid or proposal in writing, date as shown above, for Floor Covering Removal and Replacement in accordance with plans and specifications filed in the offices of the Borough and under the invitation for bids therefore, and is required to furnish bond in the amount stated above. If Principal, within the period specified in the Proposal, after receiving written notice of Intent to Award the contract for the project, or any part thereof, enters into a written contract for the performance of the project and executes and delivers to the Borough good and sufficient performance, labor and material bonds, then the foregoing obligation shall be null and void, otherwise it shall remain in full force and effect. The obligation on this bond shall in no event exceed the difference between the amount of the contract, if finally awarded to another Bidder, and the amount bid by Principal on the project. In Presence of: WITNESS INDIVIDUAL PRINCIPAL 1. as to (Seal) 2. as to (Seal) 3. as to (Seal) 4. as to (Seal) \ \dove\Departments\EF\Capital Projects\Bond Issue\Projects\Floor Covering Replacement\Bid Documents\RFQ Floor Covering - KMS & Main.doc Page 20 of 66 CORPORATE SURETY First National Insuran Company of America Safeco Plaza, Seattle, A 98185 Business Addres Attest by: Betty A: Cox Title: Affix Corporate Seal CORPORATE PRINCIPAL Commercial Contractors, Inc. 4900 Fairbanks Street, Anchorage, AK 99503 Business Address Atte Title: 7feii &171 Affix Corporate Seal The offered Bid Bond has been checked for adequacy under applicable statutes and regulations. Date Contracting Officer Kodiak Island Borough The rate of premium on this bond is Nil per thousand. Total amount of premium charged, $ Nil (The above must be filled in by Corporate Surety) CERTIFICATE AS TO CORPORATE PRINCIPAL I, C /2CS ,. P i5ZSE�v , certify that I am the e-o,Re0 7 secretary of the corporation named as principal in the within bond; that /&' Ry PC-� -EA( ,who signed the said bond on behalf of the principal, was then l2 - 5 //7a1 T` of said corporation; that I know his signature, and his signature thereto is genuine; and that said bond was duly signed, sealed, and attested for in behalf of said corporation by authority of its governing body. CORPORATE SEAL \ \dove\Departments\EF\Capital Projects\Bond Issue\Projects\Floor Covering Replacement\Bid Documents\RFQ Floor Covering - KMS & Main.doc Page 21 of 66 KNOW ALL BY THESE PRESENTS: STEPHANIE DALEY - WATSON, SECRETARY S 1049/DF 4/05 this 17th this POWER OF ATTORNEY No. 5465 day of January First National Insurance Company of America Safeco Plaza Seattle, WA 98185 That FIRST NATIONAL INSURANCE COMPANY OF AMERICA, a Washington corporation, does hereby appoint * * * * * * * * * * * * * * * ** *CARL F. BRADY, JR.; JAMES K. BRADY; KRIS W. BURNETT; BETTY A. COX; KENT ECKHOFF; KRISTY KONTE; KELLY MICHAEL LAYMAN; KIRK LEADBETTER; LAURA SCHUBERT; SUSAN SPINDLER; Anchorage, Alaska * * * * * * * * * * * * * * ** its true and lawful attorney(s) -in -fact, with full authority to execute on behalf of the company fidelity and surety bonds or undertakings and other documents of a similar character issued by the company in the course of its business, and to bind FIRST NATIONAL INSURANCE COMPANY OF AMERICA thereby as fully as if such instruments had been duly executed by its regularly elected officers at its home office. IN WITNESS WHEREOF, FIRST NATIONAL INSURANCE COMPANY OF AMERICA has executed and attested these presents , 2007 . TIM MIKOLAJEWSKI, SENIOR VICE- PRESIDENT, SURETY CERTIFICATE Extract from the By - Laws of FIRST NATIONAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the validity of any such instrument or undertaking." Extract from a Resolution of the Board of Directors of FIRST NATIONAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Article V, Section 13 of the By - Laws, and (ii) A copy of the power -of- attorney appointment, executed pursuant thereto, and (iii) Certifying that said power -of- attorney appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, Stephanie Daley- Watson , Secretary of FIRST NATIONAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of this corporation, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation _0/ ... day of ,Ieei )f.1 STEPHANIE DALEY - WATSON, SECRETARY Safeco® and the Safeco logo are registered trademarks of Safeco Corporation. WEB PDF PROPOSAL of NAME OF CONTRACTOR K.)6 KT 14/(1 R.p LoArk_p Pi\J \di ADDRESS t k (4-G2 C4 L To the Borough Manager of the Kodiak Island Borough: The Undersigned proposes to furnish all labor and materials required in the Floor Covering Removal and Replacement Project located within Kodiak Island Borough, Alaska, according to the contract documents therefore and for the amount and prices named herein as indicated on the Bid Schedule herein contained which is made a part of this Proposal. The Undersigned declares the only person or parties interested in the proposal as principals are those named herein; and the proposal is made without collusion with any person, firm or corporation; that he has carefully exarnined the specifications; and General Provisions and that he has made a personal examination of the site of the work (as required by KIB Certificate of Attendance) and that he is to furnish all labor and equipment specified in the manner and the time prescribed. The Undersigned hereby agrees to execute all documents required by the Instruction to Bidders within 10 days or such further time as may be allowed in writing by the Borough Manager after receiving written notification of the Intent to Award, and it is hereby mutually understood and agreed that in case we do not, we forfeit the accompanying check or bid bond to the Kodiak Island Borough as liquidated damages, and the said Borough Manager may proceed to award the contract to others. Written notice of Intent to Award will be mailed, or otherwise furnished, within ten (10) calendar days after opening of bids. We hereby agree to commence the work within ten (10) days after receipt of the Notice to Proceed, or such further time as may be allowed in writing by the Borough Manager and to be completed in accordance with the final completion deadline set forth in the Scopes of Work. The Undersigned shall sign a Contract containing a liquidated damage clause and other requirements as stated by law, the liquidated damage clause shall he One Hundred Dollars ($100.00) per each calendar day after contract completion. The Undersigned proposes to furnish a Payment Bond in the amount of 50% of the contract S `AS k€,--1 and a Performance Bond in the amount of 50% of the contract $ 0 1 -3 as surety conditioned for the full, complete and faithful performance of this contract and to indemnify and save harmless the Kodiak Island Borough from any damage or loss for which the Kodiak Island Borough may become liable by the default of Undersigned, or by reason of any neglect or carelessness on the part of Undersigned, his agents or employees or by or on account of any act of omission of Undersigned, his servants, agents, or employees in performance of this contract. \\clove\Departrnents\EF\Capital Projects\Bond Issue\Projects\Floor Covering Replacernent\Bid Documents\RFQ Floor Covering- KivIS & Main.doc Page 23 of 66 The Undersigned proposes to guarantee all work performed under the Drawings, Specifications. and Contract, and repair and maintain the same until the date of acceptance by the Borough Manager and one year thereafter or until the expiration of such other guarantees as may be provided by the Contract Documents. The Undersigned acknowledges receipt of the following addenda. to the drawings and/or specifications (Give number and date each. If not received, write in the word "NONE"). ADDENDA 44- k Title: Address: 4. Bid Schedule. (see attached) DATE ISSUED Date: — t - 2_6 ,- , 410 Signature: ADDENDA i p i ,A- tv# 4.‘,...4 va Kit aivt,E DATE ISSUED \\dove\Departments\EF \Capital Projects\Bond Issue\Projects \Floor Covering Replacernent\Bid Documents\RFQ Floor Covering- KMS & Mainsioc Page 24 of '6 Contract Documents, will perform: Kitchen area. i eIitai alVa. Date: .113-12- (Seal if by Corporation) BID SCHEDULE Floor Covering Removal and Replacement ro,t 0 1 e:c r.1 in strict conformance with the ioc,' A . - 3 - ;900 - squad,. fret of fife.- Base Bid: Removal, disposal. and replacement of floor coverings at Main Elementary School: J C P 156 1.4 ttAS44.1 dollars $ Additive Alternate 41: 3,600 square feet of tile replacement in Main Elementary Commons and k & Sex-00 f ri DIteD dollars $ , 4.9 ve4-1 r I • 7 • 1 S II 11. " "dbilars - Additive Alternate 43: 140 square yards of sheet vinyl in Kodiak High School Kitchen area. (t-AzA --141- D AJ e -47 " -02 --6 2 _9 . 4 , t(i f1 aollars $ 1 1 ) t Respectfully submitted: , B t j c _,- 7 ---.0A...:, — Contracting Firm Signature iv\M/Pre.erno5 3& Z Title vit,11,, t-k,p,. og 1_44 Business Address 111. I • A (9 E 4- 1 JAzSkA ° r1 5 -7 '4' \\clove\DepartmenWEF,C.apital Prolects\Bond Issue\Projeets\Floor Covering Replacement \Bid Documents\RFQ floor Covering- KMS & Main.cloc Page 25 of 66 1, t , ia.vv■ pre-bid conference for: CERTIFICATE hereby certify that as a condition to admission to the Floor Covering Removal and Replacement 1. N.)0.z C , Inc, intends to file a bid in accordance with this solicitation. 2. That if bids were to be called for at the time of the pre-bid conference, that such Bidder has examined the plans and specifications to the degree that the submission of a final bid could be made. 3. That such Bidder recognizes that the purpose of the pre-bid conference is to resolve ambiguities, inconsistencies, errors or omissions in such plans or specifications. 4. That if subsequent to the award of any contract, as a result of a need to interpret, enforce or otherwise resolve any ambiguity, inconsistency, error or omission in the plans and specifications, such interpretation, enforcement or resolution shall be made with a preference to accomplishment of the purpose of the contract, without additional cost to the owner, if by any reasonable inference the basis for such action could have been raised and resolved at the pre-bid conference. 5. That this certificate is a material requirement of the solicitation and shall remain a material covenant of the resulting contract. 6. The Bidder has visited the site, become familiar with local conditions under which the work is to be perfon and .has correlated the Bidder's personal observations with the requirements of the proposed Contract Documents. At the conclusion of the pre-hid conference, all inquiries shall be reduced to writing and shall be published as an addendum to this solicitation, so that all Bidders may bid on an equal basis, free from error and with a clear understanding of the requirements of this contract. The parties hereto agree that in the event it becomes necessary to determine the meaning, scope or interrelationship of any of the provisions of this contract, the doctrine of the contra proferentum shall not be used. On the contrary, interpretation shall be based on a reasonable basis consistent with the provisions and intent of the article hereof,,Intitled Pre-Bid Conference. Date I/ 2 L( i; <431 Title: rv- vIet e 14 \\dove\Departments\EF \Capital Projects\Bond Issue Trojects\Floor Covering Replacement\Bid Documents\RFQ Floor Covering- KMS & Main.doc 1-,,tgc t31 (To be filled in when Documents are executed in behalf of a Corporation) UNITED STATES OF AMERICA) ) ss: STATE OF ALASKA r z L _E - D The foregoing instrument was acknowledged before me this day of f , 2007 by A . LA) 1:7. (Name of Officer) r of Mr 6 . (Name of Corporation) 0 c, \ RA 44 `//4;,• 4 4 , .......... 140 19 )- I ° .( ?J ‘C) CORPORATE ACKNOWLEDGEMENT .0_ ..... . ExPires 011ii11110 A-rt-dek- NotarYclitblic (Title of Officer) -,Corporation, on behalf of said Corporation, My Commission Expires ,2e)l / \\dove\Departments\EF \Capital Projects 'Bond Issue \Projects \Floor Covering Replacement\Bid Documents\RFQ Floor Covering- KMS & Main.doc Page 1, (If AiA" BID BOND Date Bond Executed MAY 02 , 2 0 0 7 Principal NORTHWEST CARPET COMPANY, LLC. Sur ety CONTRACTORS BONDING AND INSURANCE COMPANY FIVE (5 %) OF THE ATTACHED BID Penal Sum of Bond (Express in words and figures) Date of Bid INDIVIDUAL PRINCIYA MAY 4, 2007 KNOW ALL MEN BY THESE PRESENTS, that we, the PRINCIPAL and SURETY above named, are held and firmly bound to the Kodiak Island Borough, hereinafter called the Borough, in the penal sum of the amount stated above, for the payment of which sum well and truly made, we bind ourselves and our legal representatives and successors, jointly and severally, firmly by this instrument. THE CONDITION OF THE FOREGOING OBLIGATION is that the Principal has submitted the accompanying bid or proposal in writing, date as shown above, for Floor Covering Removal and Replacement in accordance with plans and specifications filed in the offices of the Borough and under the invitation for bids therefore, and is required to furnish bond in the amount stated above. PROJECT KODIAK SCH&OLb FLOOR REPLACEMENT If Principal, within the period specified in the Proposal, after receiving written notice of Intent to Award the contract for the project, or any part thereof, enters into a written contract for the performance of the project and executes and delivers to the Borough good and sufficient performance, labor and material bonds, then the foregoing obligation shall be null and void, otherwise it shall remain in full force and effect. The obligation on this bond shall in no event exceed the difference - een the amount of the contract, if finally awarded to another Bidder, and the amount bid by 11 on the project. to DELANO WILLIAMS, MANAGING MEMBER 2. as to (Seal) 3. as to (Seal) 4. as to (Seal) t\dove\Departrnents\EFlCapital Projects\Bond lssucwrojccts\Floor Covcring Rcplacancnt'Bid Documcnts\RFQ Floor Cwcring- KMS & Main.doc Page 20 of 66 CORPORATE SURETY CONTRACTORS BONDING AND INSURANCE COMPANY BusinesKAddress PO BOX 9271 SEATTLE , ASHINGTON 98109 Attesty: Date ACT CORPORATE PRFNC. 'AI_, Busi ness Address Attest by: is T itle: AAii t • Title: C EEN M. ERR S, Afflx orate 6a1 ATTORNEY Affix Corporate Seal The offered Bid Bond has been checked for adequacy under applicable statutes and regulations. Contracting Officer Kodiak Island Borough The rate of premium on this bond is N / A per thousand. Total amount of premium charaed, 5 NIL (The above must he - filled in by Corporate Surety) CERTIFICATE AS TO CORPORATE PRINCIPAL I, „ certify that I am the vt.14,t/. i4 secretary of the corporation named as principal in the within bond; that .-e,(A:t.v A Pv11-4-4----..,who signed the said bond on behalf of the principal, was then '- '"- trr-5 of said corporation; that 1 know his sirmature, and his signature thereto is genuine; and that said bond was duly signed, sealed, and attested for in behalf of said corporation by authority of its governing body. CORPORATE SEAL \\dove\ Departments\ERCap nal Projeets\Bonci IssueTrojects\Floor Covering Replacernent\Bid Documents \RFC Floor Co KMS & Main.iloc Pan,e 21 of 66 Not Valid for Bonds Executed On or After: LIMITED POWER OF ATTORNEY ' elf Only an unaltered original of this Power of Attorney document is valid. A valid original of this document is printed on gray security paper with black and red ink and bears the seal of Contractors Bonding and Insurance Company (the "Company"). The original document contains a watermark with the letters "chic" embedded in the paper rather than printed upon it. The watermark appears in the blank space beneath the words "Limited Power of Attorney" at the top of the document and is visible when the document is held to the light. This document is valid solely in connection with the execution and delivery of the bond bearing the number indicated below, and provided also that the bond is of the type indicated below. This document is valid only if the bond is executed on or before the date indicated above. KNOW ALL MEN BY THESE PRESENTS, that the Company does hereby make, constitute and appoint the following: JODY L. ASHBURN, JOHN D. CRAWFORD, NICOLE R. MOORE, COLLEEN FERRIS and PERRI LAJOIE its true and lawful Attorney(s) -in -Fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver on behalf of the Company: (1) any and all bonds and undertakings of suretyship given for any purpose, provided, however, that no such person shall be authorized to execute and deliver any bond or undertaking that shall obligate the Company for any portion of the penal sum thereof in excess of $10,000,000, and provided, further, that no Attorney -in- Fact shall have the authority to issue a bid or proposal bond for any project where, if a contract is awarded, any bond or undertaking would be required with penal sum in excess of $10,000,000; and (2) consents, releases and other similar documents required by an obligee under a contract bonded by the Company. This appointment is made under the authority of the Board of Directors of the Company. - - NOR TI71-KEST- _CARP -ET- COMPANY 7 — -LL C-b - - KGB IA - I£>rAND- -Be RODS CI - - B-I- D- B- OND -sro - - $fH - 'DATE - 5 =4 �2'ee 7 -- i CTI7TP1 - ' SCHOOLS - FLUOR - REP LA CERTIFICATE I, the undersigned secretary of Contractors Bonding and Insurance Company, a Washington corporation, DO HEREBY CERTIFY that this Power of Attorney remains in full force and effect and has not been revoked, and, futhermore, that the resolutions of the Board of Directors set forth on the reverse are now in full force and effect. Bond Number MARCH 31ST, 2008 Signed and sealed this BID BOND ee �s ^ ° ° . eo° I e o �ose 0pee o eoogo e ° e 0 voso poQO ° °0 g4 f ' 0O', 0 00000� p °p e ve ° O O O ° 0 o vo °e ° ° ° roe ^ °a ° , °eadl 1 ea oe 1 osa, ° da 1 `e� ae 111 e A a s e e ` e `1 11 e e `' e, e e e a, e j ° o °vo6a 04dOP� °ed q ��db p 0 ° ° d Pepd p p a °:eg egd o �'90d��0 ° n ° e °b��0� a e ed�'8�P0 °ed�09o44p ee006�N�760 a c °ad�6Pad Qe °a gedd;d��00pa °Od��94o��0� �EOdNdO��Qp oPe• ' 0 °0 °0° <p° i e o° ° gp 0 °°°gp °° o O gOgOq°pP e °p oP ° o °°0pP°°°1 p o o a pOpOp°Qp a eo a vy e00g 0 0 ppp° 4 i OOgpp�0oai u v9g00 �° a °°q °gegp4peP1 e°°q°gp0°OPppppo awo a °°qp °pq ;gpppp°8o ° °moo o9ggpgpOpgpdPpp o °woe °oq°gggpqppp�o°p e°ie°,y0o°OggPgpp°p� i � 04° po< p °p ° °5A0000 °e °� °e oa° oe °e °o °ea° °aw °e °o °eo�O °tiy°o ode °e °e °oo °e °r°e °eo °o °e °r °ep °+ a ° o °eoe °e °ev oo °p 000veo°oe ° ® oao °oco °e °e ° wavo °oo°a ° oRa °� a °o °o ° ° ° o ° awn °o °i$ ° ® ° ° °° ° ° ° O 8q ° ®C o ° °o °6ovoQaase ° . 'w ° °so °od� 0obp0oa e'er e o opoo a °r.�► oo °° oe °: �r o ° o ° o ° �" °. oeo ° °e �� a °o °° oe ° °�'� o e o e. °�� o ° oa °te r. °O O ° e a °° �r oo ° ° ° °arp ° ° °��► ° o ° ° °ooe° ° eo° o a O o MAY 2007 R. Kirk Eland, Secretary CBIC • 1213 Valley Street • P.O. Box 9271 • Seattle, WA 98109 -0271 (206) 622 -7053 • (800) 765 -CBIC (Toll Free) • (800) 950 -1558 (FAX) PoaLPOA.07- US051104 No. 29008 Effective: 12/29/2006 Expires: 12/31/2008 STATE OF ALASKA DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT Division of Corporations, Business and Professional Licensing P.O. Box 110806, Juneau, Alaska 99811 -0806 Division of Corporations, Business and Professional Licensing Certifies that NORTHWEST CARPET COMPANY LLC Is A Registered General Contractor - Excludes Residential Commissioner: Emil Notti f/ 7/ ® F &a m _ 5 .... E R c& Jj �j J m 2 ( / § k k c. a ¥2 c a) (ti- JE @ @ • cb C CD cn0 oE 00_ O Cl. = ( j � J 5 /0 �� R c .2 - ] 9 9 m a JW m / // U 0Q - 13 a 0 03 2 E m 0 0 k. � 3 g m o 0 = 0 // � c0 7 ®5 c � =\ % a§ a Q k _ S / 5 k Cr 0 w • �� _, r \ m $ n § . k & E % +. oa cn $ /J \� k 9 / 03 m @ CD OWNER - GENERAL CONTRACTOR AGREEMENT Contract No. 2007- THIS AGREEMENT, made this day of , A.D., 2007, between the Kodiak Island Borough, acting by and through its Borough Manager, party of the first part, and Northwest Carpet Company, LLC of Eagle River, Alaska, hereinafter called the Contractor. WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein specified and agreed to by the party of the first part, hereby covenants and agrees to furnish, remove, dispose of, install and otherwise perform all the work and labor required in the Floor Covering Replacement Project, including Alternate Bids #1 and #2, at Main Elementary and the Kodiak High School Kitchen located in the Kodiak Island Borough, Kodiak, Alaska, and in conformance with the Bid Package dated April 2007 for the sum of One Hundred Ninety Thousand, Six Hundred Eighty Eight and no /100 ($190,688.00) Dollars. The Contractor further covenants and agrees that he and his crew for this Project will attend a pre construction conference to ensure that all work, materials and installation procedures are strictly adhered to. The date of the pre construction conference will be contained in the Notice to Proceed. The Contractor further covenants and agrees that the entire construction shall be done under the administration and to the complete satisfaction of the Kodiak Island Borough subject to inspection at all times and approval by any participating agency of the Government of the United States of America, and in accordance with the laws of the State of Alaska and rules and regulation of said Federal Agency. The Contractor further covenants and agrees that all of said work and labor shall be done and performed in the best and most workmanlike manner and that all and every of said materials and labor shall be in strict and entire conformity in every respect with the Contract documents: that he will abide by and perform all stipulations, covenants, and agreements specified in said Contract documents, all of which are by reference hereby made a part of this Agreement, as to all premises therein: and in case any of said materials or labor shall be rejected by the Borough Manager or his assistant or authorized representative, as defective or unsuitable, then the said materials shall be removed or replaced with other approved materials and the said labor shall be done anew, to the satisfaction and the approval of the Borough Manager or his representatives, at the cost and expense of the Contractor. The Agreement entered into by the acceptance of the Contractor's Bid and the signing of this Agreement consists of the following documents all of which are component parts of said Agreement and as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached including the General Specifications. \ \dove \Departments \EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Contracts\Agreement Main and HS Kitchen.doc Page 1 of 5 1. The Agreement 2. Change Orders 3. Addenda 4. Supplementary Conditions 5. Specifications 6. Contract Drawings 7. General Conditions 8. Standard Specifications Incorporated by reference 9. Information for Bidders 10. Advertisement for Bids 11. Bid Form 12. Performance and Payment Bond 13. Notice of Intent to Award 14. Notice to Proceed In the event of any conflict or inconsistency between any of the foregoing documents, the conflict or inconsistency shall be resolved upon the basis of the numerical order. The document or documents assigned the small number or numbers being controlling over any documents having a larger number in the numerical order set forth above. Provided however, although the supplemental conditions incorporates standard specifications by reference, in case of conflict or inconsistency, the standard specifications have a numerical order as shown above. The Contractor further covenants and agrees that all of said materials shall be furnished and delivered and all and every of the said labor shall be done and performed, in every respect, to the satisfaction of the herein aforementioned Borough Manager, on or before 17 August 2007. It is expressly understood and agreed that in case of the failure on the part the Contractor for any reason, except with the written consent of the Borough Manager, to complete the furnishing and delivery of said materials and the doing and performance of the said work before the aforesaid date, the party of the first part shall have the right to deduct from any monies due or which may become due the Contractor, or if no monies shall be due, the party of the first part shall have the right to recover One Hundred Dollars ($100.00) per day for each and every calendar day elapsing between the time stipulated and the actual date of completion in accordance with the terms thereof: said deduction to be made, or said sum to be recovered not as penalty, but as liquidated damages. Provided, however, that upon receipt of written notice from the Contractor of the existing causes over which said Contractor has no control and which must delay the completion of said work, the Borough Manager may, at his discretion, extend the period herein before specified for the completion of the said work, and in such case the Contractor shall become liable for said liquidated damages for delays commencing from the date on which said extended period shall expire. The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for furnishing all the materials and labor which may be required in the prosecution and completion of the whole work to be done under this Agreement, and in all respects to complete said Agreement to the satisfaction of the Borough Manager. It is further distinctly agreed that the said Contractor shall not assign this Agreement, or any part thereof or any right to any of the monies to be paid him hereunder, nor shall any part of the work be done or materials furnished under this Agreement. \ \dove \Departments\EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Contracts\Agreement Main and HS Kitchen.doc Page 2 of 5 IN WITNESS WHEREOF, The Kodiak Island Borough Manager by authority in him vested, has executed this Agreement on behalf of the Kodiak Island Borough, and the said Northwest Carpet Company. LLC have hereunto set their hands and seals, the day and year first above written. KODIAK ISLAND BOROUGH CONTRACTOR By By Rick L. Gifford Borough Manager Title: By Woody Koning Director, Engineering/Facilities Attest: By Nova M. Javier, CMC \ \dove \Departments \EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Contracts\Agreement Main and HS Kitchen.doc Page 3 of 5 GENERAL SPECIFICATIONS The following requirements with respect to insurance and indemnification requirements shall be added to and become an integral part of the original Agreement: Insurance The Contractor shall not commence work under the Agreement until he has obtained all the insurance required by these General Specifications and such insurance has been approved by the Owner, nor shall the Contractor allow any subcontractor to commence work on his subcontract until the insurance required has been so obtained. The Contractor shall maintain such insurance as will protect him from claims under Workers' Compensation Acts and other employee benefit acts for damages because of bodily injury, including death, to his employees and all others for damages to property, any or all of which may arise out of or result from the Contractor's operations under the Agreement whether such operations be by himself or by any subcontractor or anyone directly or indirectly employed by either of them. Evidence of the following insurance policies will be furnished to the Owner prior to execution of the Agreement. a) Compensation: The Contractor shall procure and maintain during the life of the Agreement, workers' compensation insurance as required by applicable state law for all his employees to be engaged in work at the site of the project under this Agreement and, in case of subcontracted work, the Contractor shall provide workers' compensation insurance for all the subcontractors' employees engaged in such work. b) Contractor's Liability: The Contractor shall procure and maintain, during the life of the Agreement, public liability insurance and contractual liability. The minimum acceptable limits of combined single limit coverage shall be in an amount not less than one million ($1,000,000) dollars. Vehicle or Automobile Liability and Property Damage Insurance: Limits coverage to be in the same amounts specified in a) above. Subcontractors' Public Liability and Property Damage Insurance: The Contractor shall insure in this policy the activities of his subcontractors in type and amounts as specified in a) and b) above. The Contractor shall furnish certificates issued to the contracting agency showing the type, amount, class of operations covered, effective date, and dates of expiration of policies. Such certificates shall contain substantially the following statement: \ \dove \Departments\EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Contracts\Agreement Main and HS Kitchen.doc Page 4of5 "Sixty (60) days Notice of Cancellation or Change, Non Renewal, Reduction and /or Material Changes shall be sent to Director, Engineering/Facilities Department, Kodiak Island Borough." Additional Insured: The following shall be an Additional Insured: The Kodiak Island Borough, including all elected and appointed officials, all employees and volunteers, all boards, commissions and /or authorities and their board members, employees and volunteers. The Additional Insured shall be named on the Contractor's coverage for Commercial General and Vehicle liability. Indemnification: To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and volunteers against any and all liabilities, claims, demands, lawsuits or losse §, including costs and attorney fees incurred in defense thereof, arising out of or in any way connected or associated with the Agreement. \ \dove \Departments \EF \Capital Projects \Bond Issue\Projects\Floor Covering Replacement \Contracts\Agreement Main and HS Kitchen.doc Page 5 of 5 Fiscal Notes: ❑ n/a Account No. 220.232.450.380 & 220.234.450.430 Expenditure Required: $ ❑ n/a Amount Budgeted: ❑ n/a Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No. 13.A.2 Contract No. FY2007 -47 Kodiak Island Borough Facilities, Schools and Grounds - Road Maintenance and Repairs, Snow Removal and Sanding, and Small Projects. The Kodiak Island Borough, Engineering and Facilities Department, advertised the need for labor and equipment to provide parking lot snow removal, sanding and maintenance at the KIB schools, KIB Administrative Building, KFRC and Landfill, and other small projects under $15,000. One bid was received from TC Enterprises, Inc. / MK Enterprises, LLC. The bid was reviewed and compared to those of the previous years. The bid was submitted with price quotes for individual pieces of equipment to be used on the projects provided above. The Borough Engineering and Facilities Department recommends awarding the KIB Administrative Building and School Facilities Maintenance and Repairs, Snow Removal and Sanding, and other small projects under $15,000 to TC Enterprises, Inc. / MK Enterprises, LLC. The contract will name MK Enterprises, LLC as the Contractor of this work, and all invoicing, etc. will be provided through this Contractor. APPROVAL FOR AGENDA: te,c4 Recommended motion: Move to authorize the manager to execute Contract No. FY2007 -47 with MK Enterprises, LLC of Kodiak, Alaska for time and materials based on the Bid Schedule, for the period of July 1, 2007- June 30, 2009. OWNER - GENERAL CONTRACTOR AGREEMENT Road Maintenance and Repairs, Snow Removal and Sanding, and Small Projects under $15,000 for MB Facilities, Schools, and Grounds Contract No. 2007- THIS AGREEMENT, made this day of , A.D., 2007, between the Kodiak Island Borough, acting by and through its Borough Manager, party of the first part, and M.K. Enterprises, LLC of Kodiak, Alaska, incorporated under the laws of the State of Alaska, its successors and assigns, party of the second part, hereinafter called the Contractor. WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein specified and agreed to by the party of the first part, hereby covenants and agrees to commence and provide maintenance and repairs described as follows: in the Kodiak Island Borough, Kodiak, Alaska, for the amount specified in the attached Bid Schedule. The Contractor further covenants and agrees that the entire project shall be done under the administration and to the complete satisfaction of the Kodiak Island Borough, subject to inspection at all times and approval by any participating agency of the Government of the United States of America, and in accordance with the laws of the State of Alaska and rules and regulations of said Federal Agency. The Contractor further covenants and agrees that all of said work and labor shall be done and performed in the best and most workmanlike manner and that all and every of said materials and labor shall be in strict and entire conformity in every respect with the Contract Documents: that he will abide by and perform all stipulations, covenants, and agreements specified in said Contract Documents, all of which are by reference hereby made a part of this Contract, as to all premises therein. The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for furnishing all the materials and labor which may be required in the prosecution and completion of the whole work to be done under this Contract. IN WITNESS WHEREOF, The Kodiak Island Borough Manager, by authority in him vested, has executed this contract on behalf of the Kodiak Island Borough, and the said M.K. Enterprises, LLC. has hereunto set its hand and seal, the day and year first above written. \\Dove\Departments\EF\Service Districts \KIB Facilities \Snow Removal - Projects RFQ 2007\Agreement 2007.doc Page 1 of 4 KODIAK ISLAND BOROUGH M.K. ENTERPRISES, LLC. By By Rick L. Gifford Borough Manager Title: By Walle W. Koning Engineering/Facilities Director Attest: By Nova M. Javier, CMC Borough Clerk \\Dove\Departments\EF\Service Districts \KIB Facilities \Snow Removal - Projects RFQ 2007\Agreement 2007.doc Page 2 of 4 The following requirements with respect to insurance and indemnification requirements shall be added to and become an integral part of the original Agreement: Insurance Insurance Specifications The Contractor shall not commence work under the Agreement until he has obtained all the insurance required under this Addendum and such insurance has been approved by the Owner, nor shall the Contractor allow any subcontractor to commence work on his subcontract until the insurance required has been so obtained. The Contractor shall maintain such insurance as will protect him from claims under Worker's Compensation Acts and other employee benefit acts for damages because of bodily injury, including death, to his employees and all others for damages to property, any or all of which may arise out of or result from the Contractor's operations under the Agreement whether such operations be by himself or by any subcontractor or anyone directly or indirectly employed by either of them. Evidence of the following insurance Policies will be furnished to the Owner prior to execution of the Agreement. Without limiting the Contractor's indemnification, it is agreed that the Contractor will purchase, at his own expense and maintain in force at all times during the performance of services under this Contract, the following policies of insurance. Failure to maintain insurance may, at the option of the Contracting Officer, be deemed Defective Work and remedied in accordance with the Contract. Where specific limits are shown, it is understood that they will be the minimum acceptable limits. If the Contractor's policy contains higher limits, the Borough shall be entitled to coverage to the extent of such higher limits. As a condition of award, certificates of insurance must be furnished to the Contracting Officer. These certificates must provide thirty (30) day prior notice to the Borough in the event of cancellation, non - renewal or a material change in the policy. Proof of insurance is required of the following: A. Workers' Compensation Insurance The Contractor shall provide and maintain, for all employees of the Contractor engaged in work under this Contract, Workers' Compensation Insurance as required by A.S. 23.30.045. The Contractor will be responsible for Workers' Compensation Insurance for any subcontractor who provides services under this Contract. This coverage must include statutory coverage for States in which employees are engaging in work and employer's liability protection not less than $100,000.00 per person, $100,000.00 per occurrence. B. Comprehensive (Commercial) General Liability Insurance with coverage limits not less than $300,000.00 combined single limit per occurrence and annual aggregates where generally applicable and will include premise operations, independent contractors, products /completed operations, broad form property damage, blanket \\Dove\Departments\EF\Service Districts \KIB Facilities \Snow Removal - Projects RFQ 2007\Agreement 2007.doc Page 3 of 4 contractual and personal injury endorsements. The Kodiak Island Borough shall be named as an "Additional Insured" under all liability coverage listed above. C. Comprehensive Automobile Liability Insurance covering all owned, hired, and non - owned vehicles and with coverage limits not less than $100,000.00 per person, $300,000.00 per occurrence bodily injury, and $50,000.00 property damage. Additional Insured: The following shall be an Additional Insured: The Kodiak Island Borough, including all elected, and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and their board members, employees and volunteers. The Additional Insured shall be named on the Contractor's coverage for Commercial General and Vehicle liability. Indemnification: To the fullest extent permitted by law Brechan Enterprises, Inc. agrees to defend, indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and volunteers against any and all liabilities, claims, demands, lawsuits or losses, including costs and attorney fees incurred in defense thereof, arising out of or in any way connected or associated with the Agreement. \\Dove\Departments\EF\Service Districts \KIB Facilities \Snow Removal - Projects RFQ 2007\Agreement 2007.doc Page 4 of 4 May 14, 2007 Memo RE: Contract for Kodiak Island Borough Administrative Building and School Facilities Snow Removal, Sanding and Parking Lot Maintenance and Repairs, and Small Projects under $15,000. One bid was received on April 27, 2007 from TC Enterprises /MK Enterprises, LLC for the above referenced project. The Engineering and Facilities Department staff reviewed the bid. TC Enterprises has performed the snow removal /maintenance work for the Facilities the past four years and has been a responsive contractor. MK Enterprises, LLC will be the named contractor for this contract. Best Regards, Woody K ing, Director, E/F Department Kodiak Island Borough Engineering /Facilities Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9343 Fax (907) 486 -9394 Type of Labor or Description, Age, & Rental and/or Equipment Condition of Equipment Labor Rate /Hour 155< HP GRADER f PaDL 73() 156> HP GRADER (Mi> i0,, / 8 -10 CY SANDER .. , >8 -10 CY SANDER ?o Ford 10 -12 CY END DUMP / DUMP WITH TILT DECK FRONT END LOADER 1 1h - 4 /z CY c?A/,.A\ts PICKUP WITH LABORER F -zso � � F ---z5-0 � LOWBOY TRAILER Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT • . i_ DD 90/110 ROLLER k/24 eelkk 4iY13A4/L: / 990 Good &457 (7 /99/ / 75 0 ' /9c) Good /994/ 6oncl /RqB 2000 Good 1999Good 63+ HP BACKHOE 599 C(--S «L 19G 1 Ciocd- / Z: t � 00 .256 . or) I15' \\Dove\Departments \EF\Service Districts \K1B Facilities \Snow Removal - Projects RFQ 2007 \Bid Schedule 2007.doc Page 1 of 6 Presently Owned Or Rented (circle one) /R O/R ( R O/R (6)R O/R O/R .00 r •/ R ( R 0)/ R (0)/ R O (fit) O/R O.!/ R O/R O / R ICE THAWING EQUIP (STEAM GENERATING) WATER TRUCK 100+ GAL 49C0 ✓N,4 ci cjA ✓ ' 7 C R / 94 G VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" — 84" .5'1/ " / 99( Vi " 1999 Cori Citioly lo,) 5 75> HP DOZER 5-SD RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP - 155 LABOR RATE MISCELLANEOUS EQUIP Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT (Proposer: Please attach additional pages if necessary) 75, oa �� .S • o0 ✓ci9�G,! � ✓O� C /cc X 2,5 00 SANDING MATERIAL $ per Cubic Yard $ per Ton t /a" Rock Chips /9 80 D -1 9 10 \\Dove \Departments\EF\Service Districts \K1B Facilities \Snow Removal - Projects RFQ 2007 \Bid Schedule 2007.doc Page 2 of 6 The Proposer agrees to provide labor and/or operated equipment at a rate including the above straight hourly rates plus an incremental $ pa per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specifications at cost plus f ' percent ( %) profit, unless material is owned and generated by the Contractor. The Proposer hereby agrees to furnish the following listed road construction and repair labor and equipment as requested by the Owner and at the below listed labor and rental rates. Listed labor and rental rates shall be in effect for the following specified period: July 1, 2007 through June 30, 2009. To be a responsive bidder, proposal rates for the following equipment will be required to be included as equipment accessible for the Contractor for use in the performance of the Contract: Type of Labor or Equipment 155< HP GRADER ( I t Anp eui 1 3O 156> HP GRADER r l' t,t r,n&) IPX) 8 -10 CY SANDER >8 -10 CY SANDER Roca Fwd 10 -12 CY END DUMP / DUMP WITH TILT DECK FRONT END LOADER 1 1/2 - 4 1 /2 CY \\DoveADepartments\EF\S Page 3 of 6 Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT REPAIR RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT AS 36.05.010 and AS 36.05.030 rates apply Description, Age, & Rental and/or Condition of Equipment Labor Rate /Hour cig(; (Sm . / 4/,5' • cx0 Iqq i Good, / 9 9 g Gcd � i5a . a' co ce Districts \KIB Facilities \Snow Removal - Projects RFQ 2007 \Bid Schedule 2007 doc Presently Owned Or Rented (circle one) /R O/R /R O/R R O/R O -/ R /R PICKUP WITH LABORER 2Sc 4 4 OO Go z� D 4,Ac 1999 G c d LOWBOY TRAIT ER 63+ HP BACKHOE 59n', . 4L DD 90/110 ROLLER Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT ICE THAWING EQUIP (STEAM GENERATING) WATER TRUCK 100+ GAL 4/4x0 1, .r,LAa / T af6 QA VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" — 84" Noc,,Apioti 5..ff) T S'LrE,V PA•c_ 75> HP DOZER ( As— 3 5C) RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP LABOR RATE /99q (esnri - tqq,; God 4 J31.1".") / qcit, Gccd /R jg Gctd -2 ``- O 0 • 4 c / la° /99q Gccd 4 bzo ? ) - j55 'q40 &r 4 - *21c5' 7C \ \DoveADepartments\EF\Service Districts \KIB Facilities \Snow Removal - Projects RFQ 2007 \Bid Schedule 2007.doc Page 4 of 6 O/R O1/ R O/R R O/R 0 /( O/R O /R 0/R OYR O/R O?/ R O4 /R OV R 0/R O /(R ! 0/D O!/ R 0/R MATERIAL Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT Recycled Asphalt Pavement (RAP) $ per Ton (Proposer: Please attach additional pages if necessary) The Proposer agrees to provide labor and/or operated equipment at a rate including the above straight hourly rates plus an incremental $ .30 per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specification at cost plus i0 percent (%) profit, unless material is owned and generated by the Contractor. The Proposer understands that the Owner reserves the right to reject any or all proposals and to waive any informalities. Upon receipt of written Notice of Award, the formal Agreement between Owner and Contractor will be executed within ten (10) days. (Seal, if proposal is made by a Corporation) Respectfully Submitted: By: Title: Date: Business Address: fU. 4/ Z33 Telephone: 967 - 7S3 Alaska Contractor's License Number: Expires: 1_4 Alaska Business License Number: ,3io9so Expires: Z 7-C 7 / 00 k 4-k 99k O/R O/R O/ R Li C. Fiscal Notes: ❑ n/a Account No. 242.224.446.110 /120/125 Expenditure Required: $ ❑ n/a Amount Budgeted: ❑ n/a Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No. 13.A.3 Contract No. FY2007 -48 Service Area #1 Road Maintenance and Repair, Snow Removal and Sanding The Kodiak Island Borough Engineering and Facilities Department advertised the need for labor and equipment to provide road maintenance and repairs, and snow removal and sanding for Service Area #1. One bid was received from Brechan Enterprises, Inc. The bid was provided to the Service Area #1 Board for review and the Board voted to recommend award to Brechan for the time period of July 1, 2007 to June 30, 2009, based on the Bid Schedule provided in the bid. Recommended motion: Move to authorize the manager to execute Contract No. FY2007- 48 with Brechan Enterprises, Inc. of Kodiak, AK for time and materials based on the bid schedule for the period of July 1, 2007 to June 30, 2009. OWNER - GENERAL CONTRACTOR AGREEMENT Contract No. 2007- THIS AGREEMENT, made this day of , A.D., 2007, between the Kodiak Island Borough, acting by and through its Borough Manager, party of the first part, and Brechan Enterprises, Inc. of Kodiak, Alaska, incorporated under the laws of the State of Alaska, its successors and assigns, party of the second part, hereinafter called the Contractor. WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein specified and agreed to by the party of the first part, hereby covenants and agrees to commence and provide maintenance and repairs described as follows: Road Maintenance and Repairs, Snow Removal and Sanding for Service Area #1 in the Kodiak Island Borough, Kodiak, Alaska, for the amount specified in the attached Bid Schedule. The Contractor further covenants and agrees that the entire project shall be done under the administration and to the complete satisfaction of the Kodiak Island Borough, subject to inspection at all times and approval by any participating agency of the Government of the United States of America, and in accordance with the laws of the State of Alaska and rules and regulations of said Federal Agency. The Contractor further covenants and agrees that all of said work and labor shall be done and performed in the best and most workmanlike manner and that all and every of said materials and labor shall be in strict and entire conformity in every respect with the Contract Documents: that he will abide by and perform all stipulations, covenants, and agreements specified in said Contract Documents, all of which are by reference hereby made a part of this Contract, as to all premises therein. The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for furnishing all the materials and labor which may be required in the prosecution and completion of the whole work to be done under this Contract. IN WITNESS WHEREOF, The Kodiak Island Borough Manager, by authority in him vested, has executed this contract on behalf of the Kodiak Island Borough, and the said Brechan Enterprises, Inc. has hereunto set its hand and seal, the day and year first above written. \\Dove\Departments\EF\Service Districts \Service Area No. 1 Board \ServiceDistrict #1 \Road Maintenance Contract 2007- 09 \Agreement 2007.doc Page 1 of 4 KODIAK ISLAND BOROUGH BRECHAN ENTERPRISES, INC. By By Rick L. Gifford Borough Manager Title: By Walle W. Koning Engineering/Facilities Director Attest: By Nova M. Javier, CMC Borough Clerk \\Dove\Departments\EF\Service Districts \Service Area No. 1 Board \ServiceDistrict #1\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 2 of 4 The following requirements with respect to insurance and indemnification requirements shall be added to and become an integral part of the original Agreement: Insurance Insurance Specifications The Contractor shall not commence work under the Agreement until he has obtained all the insurance required under this Addendum and such insurance has been approved by the Owner, nor shall the Contractor allow any subcontractor to commence work on his subcontract until the insurance required has been so obtained. The Contractor shall maintain such insurance as will protect him from claims under Worker's Compensation Acts and other employee benefit acts for damages because of bodily injury, including death, to his employees and all others for damages to property, any or all of which may arise out of or result from the Contractor's operations under the Agreement whether such operations be by himself or by any subcontractor or anyone directly or indirectly employed by either of them. Evidence of the following insurance Policies will be furnished to the Owner prior to execution of the Agreement. Without limiting the Contractor's indemnification, it is agreed that the Contractor will purchase, at his own expense and maintain in force at all times during the performance of services under this Contract, the following policies of insurance. Failure to maintain insurance may, at the option of the Contracting Officer, be deemed Defective Work and remedied in accordance with the Contract. Where specific limits are shown, it is understood that they will be the minimum acceptable limits. If the Contractor's policy contains higher limits, the Borough shall be entitled to coverage to the extent of such higher limits. As a condition of award, certificates of insurance must be furnished to the Contracting Officer. These certificates must provide thirty (30) day prior notice to the Borough in the event of cancellation, non - renewal or a material change in the policy. Proof of insurance is required of the following: A. Workers' Compensation Insurance The Contractor shall provide and maintain, for all employees of the Contractor engaged in work under this Contract, Workers' Compensation Insurance as required by A.S. 23.30.045. The Contractor will be responsible for Workers' Compensation Insurance for any subcontractor who provides services under this Contract. This coverage must include statutory coverage for States in which employees are engaging in work and employer's liability protection not less than $100,000.00 per person, $100,000.00 per occurrence. B. Comprehensive (Commercial) General Liability Insurance with coverage limits not less than $300,000.00 combined single limit per occurrence and annual aggregates where generally applicable and will include premise operations, independent contractors, products /completed operations, broad form property damage, blanket \\Dove\Departments\EF\Service Districts \Service Area No. 1 Board \ServiceDistrict #1\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 3 of 4 contractual and personal injury endorsements. The Kodiak Island Borough shall be named as an "Additional Insured" under all liability coverage listed above. C. Comprehensive Automobile Liability Insurance covering all owned, hired, and non - owned vehicles and with coverage limits not less than $100,000.00 per person, $300,000.00 per occurrence bodily injury, and $50,000.00 property damage. Additional Insured: The following shall be an Additional Insured: The Kodiak Island Borough, including all elected, and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and their board members, employees and volunteers. The Additional Insured shall be named on the Contractor's coverage for Commercial General and Vehicle liability. Indemnification: To the fullest extent permitted by law Brechan Enterprises, Inc. agrees to defend, indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and volunteers against any and all liabilities, claims, demands, lawsuits or losses, including costs and attorney fees incurred in defense thereof, arising out of or in any way connected or associated with the Agreement. \\Dove\Departments\EF\Service Districts \Service Area No. 1 Board \ServiceDistrict #1\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 4 of 4 155< HP GRADER 156> HP GRADER 8 -10 CY SANDER >8 -10 CY SANDER FRONT END LOADER 1 '/2 - 4 %2 CY PICKUP WITH LABORER LOWBOY TRAILER 63+ HP BACKHOE DD 90/110 ROLLER Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT Type of Labor or Description, Age, & Rental and/or Equipment Condition of Equipment Labor Rate/Hour 1981 Champion 740 1986 Cat 16G 1982 Cat 14G $180.00 $210.00 $192.00 10 Cy on KW Tractor $168.00 10 -12 CY END DUMP / DUMP WITH TILT DECK 1993 to 2000 Kenworth and Mack $132.00 Komatsu WA250 Cat 966 70 Ton Load King w/ 500 HP KW Trailer 1995 Case 580L 1993 to 1999 Cat 426B $162.00 $180.00 Various $108.00 $300.00 $132.00 $132_0 \ \Dove \Departments \EF \Service Districts \Service Area No. 1 Board \ServiceDistrict #1 \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 1 of 5 Presently Owned Or Rented (circle one) CO)/ R O/R 0/R O/R %R 0/R O/R 0/R O/R 8O/R O/R PR O/R COI /R 0/R /R O R 0/R 0/R ICE THAWING EQUIP (STEAM GENERATING) American Cleaner, Steam Cleaner WATER TRUCK 100+ GAL VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" — 84" 75> HP DOZER 1976 Bomag 84" Drum $168.00 RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP LABOR RATE MISCELLANEOUS EQUIP SANDING MATERIAL Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT KW Tractor w/ 5000gal Tanker $90.00 $168.00 1996 Komatsu D65 $174.00 1998 Cat D6 M $174.00 1982 Cat D9 L $312.00 1982 Cat D9 L $312.00 (Proposer: Please attach additional pages if necessary) $65.00 $ per Cubic Yard $ per Ton 1/4" Rork Chips $21.60 $15.43 D -1 $9.36 $6.69 \ \Dove \Departments \EF \Service Districts \Service Area No. 1 Board \ServiceDistrict#1 \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 2 of 5 O/R 0)/ R 0/R 01/ R 0/R R OY R OY R O/R R O/R 0/R 0/R 0/R The Proposer agrees to provide labor and/or operated equipment at a rate including the above straight hourly rates plus an incremental $ 31.00 per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specifications at cost plus 15 percent ( %) profit, unless material is owned and generated by the Contractor. The Proposer hereby agrees to furnish the following listed road construction and repair labor and equipment as requested by the Owner and at the below listed labor and rental rates. Listed labor and rental rates shall be in effect for the following specified period: July 1, 2007 through June 30, 2009. To be a responsive bidder, proposal rates for the following equipment will be required to be included as equipment accessible for the Contractor for use in the performance of the Contract: Type of Labor or Description, Age, & Rental and/or Equipment Condition of Equipment Labor Rate/Hour Bid Construction and Maintenance at the same rates. 155< HP GRADER 156> HP GRADER 8 -10 CY SANDER >8 -10 CY SANDER Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT REPAIR RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT AS 36.05.010 and AS 36.05.030 rates apply 1981 Champion 740 $1 80.00 1986 Cat 16G 1982 Cat 14G 10 -12 CY END DUMP / DUMP WITH TILT DECK PICKUP WITH LABORER $210.00 $192.00 10 Cy on KW Tractor $168.0 1993 to 2000 KW and Mack $132.00 FRONT END LOADER 1 %2 - 4 '/ CY Cat 966 $180.00 Komatsu WA 250 $T62:0O Various S108.00 \ \Dove \Departments \EF \Service Districts \Service Area No. 1 Board \ServiceDistrict #1 \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 3 of 5 Presently Owned Or Rented (circle one) O/R O/R 0/R (JR O/R OV R LOWBOY TRAILER 63+ HP BACKHOE DD 90/110 ROLLER ICE THAWING EQUIP (STEAM GENERATING) WATER TRUCK 100+ GAL VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" - 84" 75> HP DOZER RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP LABOR MISCELLANEOUS EQUIP Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT 70 ton Load King w/ 500 HP KW tractor 1996 Komatsu D 65 $300.00 1993 to 1999 Cat 426B $132.00 1995 Case 580L $132.00 American Kleaner, steam cleaner $90.00 KW Tractor w /5000 gal tanker $168.00 1976 Bomag 84" Drum $168.00 1998 Cat D 6 M $174.00 $174.00 1982 Cat D 9 L $312.00 1982 Cat D 9 L $312.00 $73:26 \ \Dove \Departments \EF \Service Districts \Service Area No. 1 Board \ServiceDistrict #1 \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 4 of 5 O/R /R O/R eR R O/R O/R O/R O)/ R O/R OUR O/R /R R (q / O/R .0) R O/R MATERIAL Bid. Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT Recycled Asphalt Pavement (RAP) $ per Ton (Proposer: Please attach additional pages if necessary) The Proposer agrees to provide labor and/or operated equipment at a rate including the above straight hourly rates plus an incremental $ 31.00 per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specification at cost plus 15 percent ( %) profit, unless material is owned and generated by the Contractor. The Proposer understands that the Owner reserves the right to reject any or all proposals and to waive any informalities. Upon receipt of written Notice of Award, the formal Agreement between Owner and Contractor will be executed within ten (10) days. Respectfully Submitted: By: John Sessoms (Seal, if proposal is Title: CFO made by a Corporation) Date: no bid 04/27/07 Business Address: 2705 Mill Bay Road Kodiak, Alaska 99615 Telephone: 907-486-3215 Alaska Contractor's License Number: License # 441 Expires: 12/31/08 Alaska Business License Number: License - 858 Expires: 12/31/08 \ \Dove \Departments \EF \Service Districts \Service Area No. 1 Board \ServiceDistrict #1 \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 5 of 5 O/R O/R O/R Fiscal Notes: ❑ n/a Account No. 240.222.446.110 /120/125 Expenditure Required: $ ❑ n/a Amount Budgeted: ❑ n/a Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No. 13.A.4 Contract No. FY2007 -49 Womens Bay Service Area Road Maintenance and Repair, Snow Removal and Sanding The Kodiak Island Borough Engineering and Facilities Department advertised the need for labor and equipment to provide road maintenance and repairs, and snow removal and sanding for Womens Bay Service Area. One bid was received from TC /MK Enterprises. The bid was submitted with price quotes for individual pieces of equipment to be used on the projects provided above. The bid was provided to the Womens Bay Service Area Board for review and the Board voted to recommend award ( "acceptance ") of the bid proposal from T.0 /M.K. Enterprises, for the time period of July 1, 2007 to June 30, 2009, based on the Bid Schedule provided in the bid. The contract will name M.K. Enterprises, LLC as the Contractor of this work, and all invoicing, etc. will be provided through this Contractor. Recommended motion: Move to authorize the manager to execute Contract No. FY2007- 49 with M.K. Enterprises, LLC of Kodiak, AK for time and materials based on the bid schedule for the period of July 1, 2007 to June 30, 2009. OWNER - GENERAL CONTRACTOR AGREEMENT Road Maintenance and Repairs, Snow Removal and Sanding for Womens Bay Road Service Area Contract No. 2007- THIS AGREEMENT, made this day of , A.D., 2007, between the Kodiak Island Borough, acting by and through its Borough Manager, party of the first part, and M.K. Enterprises, LLC. of Kodiak, Alaska, incorporated under the laws of the State of Alaska, its successors and assigns, party of the second part, hereinafter called the Contractor. WITNESSETH: That the Contractor, for and in consideration of the payment or payments herein specified and agreed to by the party of the first part, hereby covenants and agrees to commence and provide maintenance and repairs described as follows: in the Kodiak Island Borough, Kodiak, Alaska, for the amount specified in the attached Bid Schedule. The Contractor further covenants and agrees that the entire project shall be done under the administration and to the complete satisfaction of the Kodiak Island Borough, subject to inspection at all times and approval by any participating agency of the Government of the United States of America, and in accordance with the laws of the State of Alaska and rules and regulations of said Federal Agency. The Contractor further covenants and agrees that all of said work and labor shall be done and performed in the best and most workmanlike manner and that all and every of said materials and labor shall be in strict and entire conformity in every respect with the Contract Documents: that he will abide by and perform all stipulations, covenants, and agreements specified in said Contract Documents, all of which are by reference hereby made a part of this Contract, as to all premises therein. The Contractor hereby agrees to receive the prices set forth in the proposal as full compensation for furnishing all the materials and labor which may be required in the prosecution and completion of the whole work to be done under this Contract. IN WITNESS WHEREOF, The Kodiak Island Borough Manager, by authority in him vested, has executed this contract on behalf of the Kodiak Island Borough, and the said M.K. Enterprises, LLC. has hereunto set its hand and seal, the day and year first above written. \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 1 of 4 KODIAK ISLAND BOROUGH M.K. ENTERPRISES, LLC. By By Rick L. Gifford Borough Manager Title: By Walle W. Koning Engineering/Facilities Director Attest: By Nova M. Javier, CMC Borough Clerk \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 2 of 4 The following requirements with respect to insurance and indemnification requirements shall be added to and become an integral part of the original Agreement: Insurance Insurance Specifications The Contractor shall not commence work under the Agreement until he has obtained all the insurance required under this Addendum and such insurance has been approved by the Owner, nor shall the Contractor allow any subcontractor to commence work on his subcontract until the insurance required has been so obtained. The Contractor shall maintain such insurance as will protect him from claims under Worker's Compensation Acts and other employee benefit acts for damages because of bodily injury, including death, to his employees and all others for damages to property, any or all of which may arise out of or result from the Contractor's operations under the Agreement whether such operations be by himself or by any subcontractor or anyone directly or indirectly employed by either of them. Evidence of the following insurance Policies will be furnished to the Owner prior to execution of the Agreement. Without limiting the Contractor's indemnification, it is agreed that the Contractor will purchase, at his own expense and maintain in force at all times during the performance of services under this Contract, the following policies of insurance. Failure to maintain insurance may, at the option of the Contracting Officer, be deemed Defective Work and remedied in accordance with the Contract. Where specific limits are shown, it is understood that they will be the minimum acceptable limits. If the Contractor's policy contains higher limits, the Borough shall be entitled to coverage to the extent of such higher limits. As a condition of award, certificates of insurance must be furnished to the Contracting Officer. These certificates must provide thirty (30) day prior notice to the Borough in the event of cancellation, non - renewal or a material change in the policy. Proof of insurance is required of the following: A. Workers' Compensation Insurance The Contractor shall provide and maintain, for all employees of the Contractor engaged in work under this Contract, Workers' Compensation Insurance as required by A.S. 23.30.045. The Contractor will be responsible for Workers' Compensation Insurance for any subcontractor who provides services under this Contract. This coverage must include statutory coverage for States in which employees are engaging in work and employer's liability protection not less than $100,000.00 per person, $100,000.00 per occurrence. B. Comprehensive (Commercial) General Liability Insurance with coverage limits not less than $300,000.00 combined single limit per occurrence and annual aggregates where generally applicable and will include premise operations, independent contractors, products /completed operations, broad form property damage, blanket \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 3 of 4 contractual and personal injury endorsements. The Kodiak Island Borough shall be named as an "Additional Insured" under all liability coverage listed above. C. Comprehensive Automobile Liability Insurance covering all owned, hired, and non - owned vehicles and with coverage limits not less than $100,000.00 per person, $300,000.00 per occurrence bodily injury, and $50,000.00 property damage. Additional Insured: The following shall be an Additional Insured: The Kodiak Island Borough, including all elected, and appointed officials, all employees and volunteers, all boards, commissions, and/or authorities and their board members, employees and volunteers. The Additional Insured shall be named on the Contractor's coverage for Commercial General and Vehicle liability. Indemnification: To the fullest extent permitted by law Brechan Enterprises, Inc. agrees to defend, indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees and volunteers against any and all liabilities, claims, demands, lawsuits or losses, including costs and attorney fees incurred in defense thereof, arising out of or in any way connected or associated with the Agreement. \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 - 09\Agreement 2007.doc Page 4 of 4 Type of Labor or Equipment 155< HP GRADER NI /4106 OkAt proN 13[ 156> HP GRADER i s 8 -10 CY SANDER 'l9C+C; (c41-(c. >8-10 CY SANDER RIXx FThd 10 -12 CY END DUMP / DUMP WITH TILT DECK ant,t s3 ier1'0 zs - ,r c1 PICKUP WITH LABORER F -z 4 4 &&.) r - zso 5` .. LOWBOY TRAILER 63+ HP BACKHOE CA SS- 5.90 L DD 90/110 ROLLER Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT Description, Age, & Rental and/or Condition of Equipment Labor Rate /Hour ! 9 ;c Good t 9 9'O Gocl /51s /415 ' oo /99! Goo - /'1S " igge„Gr 13T /9 9f Grd 136' ` -r- yoo 20C c3L g /GC; - co Y k ,V 34.k - i . Good / END LOADER 1 t/ - 4'/2 CY 1994 Cad /ccl& Gw 2c 6ccrl / 999 Gam! /zS•cx l 5/O • Lt, 1tc' $ 1O' / 999 Rey)( $ /e `c \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 1 of 6 Presently Owned Or Rented (circle one) / R O/R OAR O/R G/ R O/R O)/ R O/R O;/ R O)/ R R R 0'/ R 0 /R 0/R OJ R 0/R 0 /(R ICE THAWING EQUIP (STEAM GENERATING) hoc % (2 6a) 9A / l9qL 6coci WATER TRUCK 100+ GAL VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" — 84" 75> HP DOZER RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP LABOR RATE MISCELLANEOUS EQUIP SANDING MATERIAL 1/4" Rock Chips D -1 Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT l 9�i(G 6ccci 99c1 6c ocI e6 cc/ 4 i 7.5" °° /GC"' /996' (ctacI `° $ per Cubic Yard $ per Ton (Proposer: Please attach additional pages if necessary) 9s` C 19' 9 ` 'c \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA\Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 2 of 6 O/R O/R Oy R O/R OJ/ R O R O J/ R O/R O/R O/R O) /R O/R O/R O/R O/R The Proposer agrees to provide labor and /or operated equipment at a rate including the above straight hourly rates plus an incremental $ ' " per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specifications at cost plus `Li percent ( %) profit, unless material is owned and generated by the Contractor. The Proposer hereby agrees to furnish the following listed road construction and repair labor and equipment as requested by the Owner and at the below listed labor and rental rates. Listed labor and rental rates shall be in effect for the following specified period: July 1, 2007 through June 30, 2009. To be a responsive bidder, proposal rates for the following equipment will be required to be included as equipment accessible for the Contractor for use in the performance of the Contract: Type of Labor or Description, Age, & Rental and/or Equipment Condition of Equipment Labor Rate /Hour 155< HP GRADER Okt /kf:U 0.44w y l,�. > 13U 156> HP GRADER .•y1 • 8 -10 CY SANDER >8 -10 CY SANDER RCOO 10 -12 CY END DUMP / DUMP WITH TILT DECK FRONT END LOADER 1 1 - 4'/ CY Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT REPAIR RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT AS 36.05.010 and AS 36.05.030 rates apply ( C 1 Gcod q90 &oft /996) G eoci /R Gad 4 /994 Rcod s 136 5i cl \\Dove\Departments\EF\Service Districts \Womens Bay Service Area Board \WBRSA \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 3 of 6 Presently Owned Or Rented (circle one) 0/ R O/R OUR O/R O / R O/R R 0 R 9 ' / R PICKUP WITH LABORER zsC zs7 LOWBOY TRAILER 63+ HP BACKHOE DD 90/110 ROLLER LLER WATER TRUCK 100+ GAL Bid Schedule MAINTENANCE RATES LABOR AND EQUIPMENT TO BE USED ON PROJECT �Gn� c� ) 3•SrC 2,5 - c .d ICE THAWING EQUIP (STEAM GENERATING) 26.60 Ccc d, / 9'99 Ccad VIBRATORY DRUM COMPACTOR (SPECIFY TYPE) 60" — 84" ici"; 6 X5 l qc(c Goad /2_ Svc,, {lac 8 /19q 6 75> HP DO7ER RIP CAT 340> HP (90,000 LB) RIP CAT 340< HP Vet) 14G8 6cc cd -$ ; , - C'c x994 eccd /1 / — z SZ 5 5i.46 5L / 999 Gcrid /r5 77(t x6, V, Cc CA/ cc /6,5 \\Dove\Departments \EF\Service Districts \Womens Bay Service Area Board \WBRSA \Road Maintenance Contract 2007 -09 \Bid Schedule 2007.doc Page 4 of 6 Qom/ R /R Off''/ R O k _) O/R 0,» R O/R O (R O/R O /(R O/R 0)/ R 0/R 0)/ R O /R 0)R 0/R 0/R O1R 0/R MATERIAL Bid Schedule MAINTENANCE RATES LABOR AND EOUIPMENT TO BE USED ON PROJECT Recycled Asphalt Pavement (RAP) $ per Ton (Proposer: Please attach additional pages if necessary) OJR O/R OJR The Proposer agrees to provide labor and/or operated equipment at a rate including the above straight hourly rates phis an incremental $ (36 ` per hour for work performed above eight (8) hours per day and forty (40) hours per week for work performed under this contract. The Proposer hereby agrees to furnish all materials in accordance with the project specification at cost plus / percent ( %) profit, unless material is owned and generated by the Contractor. The Proposer understands that the Owner reserves the right to reject any or all proposals and to waive any informalities. Upon receipt of written Notice of Award, the formal Agreement between Owner and Contractor will be executed within ten (10) days. (Seal, if proposal is made by a Corporation) Respectfully Submitted: mac By: Cam' irP T;tt Date: ' -G 7 Business Address: 19.6. 4 Z338 j(7'/4 i k 9/ /.,T Telephone: '46 75 Alaska Contractor's License Number: .3/ 2/S Expires: _ /01.3//GS - Alaska Business License Number. k_.5 /6 93 Expires: /Z /J / /G' 7 l�C Wo \svt y 2�v\ Ate_ VC\ NC1 c3.& \ `A , `a.o oei CP.-\\ A-o CIL & -- Y1: 0'53 r��mbz2S�2Z5Z� - o\,� S.. e Z �J� Cflvo�1 G-T-OR dt_ . i moV \ % Ci - r\ ' CAD\ � ' , C-CLL � q \ o%S o zQoo vJ • �? Ae,Qo ka \ \\ �v�SZ.�SVS � � � � \� � rJ � �� o�c c�i�tc� , r o2Z.� • \� d%93 `hoc Rte° CP. ,� (:)S S . • n V a� L`� . ... .._ -\ v... �. , v t N __ - — r Q0 %\ 1\'\:m _ m\�vz,� 1 2.0■ OGR;tA o a, gOVZZ■ (:)S %t.AJt�\`v \ �- w cyrf.v o awiwe 2g� 3\ A2. CC\ -M Ay Q) b E R:)%a k ASS e •\ CZ.t. �' • vow. v Zt d . 1107-% ' V Lr.YZ: O `tom - 1,0%Z' OvJ mo vesc 1 ,Qa .'. , \.* ''"\\ 'o" bvQ," a VRL QA�\ rr \' A \r\c1. \\ \NAS �ZZ� A . .t7 b � ^ aZv'`n COQ n‘o Q� e‘k • \.fbE 'Szzva ` AiIE fi t-o ` ( "N,C . Lk-) Q Vlt. o0 x \t v Z\ N-csvzk W swq.. . k ‘..z RN,- 000 evm CAName,\(). rc\wDt. \o 1 ThO 4to SZCIJvJaZ.a F�vJiJ tiS$Za U 11J A.mi`� OL 5� . 2oaa c%It`c■•2 bZ o Q` 2�'� v •.>�'.\ �2.xa��.�� L..) 0 re•QNVy S p► S 2. (;Q'7.Aax:IEW.fl r` \y , on'1 tt V a \VI- . \,...)'L. A \'%• ` Z2.CC„OX`C■X • A'LAk A � e,..t.1 o ��Qv ��Z �, arc - tavJtviN1 2zv \?--w � "-\ z., Nc,oA'cO st• C AC OR. - \1NI_ 01 Q*• C4VC''kX• t1 St fit- d '2 z.�OM ACC2-SZNIZ0 . OR \CS■■■ ' .2_es `LA\ S'r Pom xx-\ ty.A: IQ% k„, ca .„ ) ciNcitt t;30(Tt Z.1-ZT3\v"2-. \oSL� `m Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No. 13.1 Resolution No. FY2007 -38 Rescinding Resolution FY2006 -27 and Establishing a Joint Kodiak Fisheries Advisory Committee taking the place of the Gulf Groundfish Rationalization Task Force At the May 8 joint Borough /City work session, the future of the Joint Gulf of Alaska (GOA) Groundfish Rationalization Task Force was discussed. The result of the discussion was direction to Borough and City staff to draft a resolution that would provide for the creation of a new joint fisheries committee to advise the Borough Assembly and City Council. Specifically, such a committee can provide valuable assistance to the Borough Assembly and City Council by identifying fishery management actions that could affect Kodiak and by preparing community position statements regarding such fishery management actions for consideration by the Assembly and Council. Such a committee can also serve as a forum for building consensus within the Kodiak community regarding fishery management actions. The GOA Groundfish Task Force recommended a diverse committee composition, and that composition is reflected in Resolution No. FY2007 -38. If adopted, Resolution No. FY2007 -38 will establish a joint Kodiak fisheries advisory committee. It is anticipated members will be formally appointed to the committee after the City and Borough concur with the establishment of the committee. Fiscal Notes: Recommended motion: Move to adopt Resolution No. FY2007 -38. KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -38 Introduced by: Manager Gifford Requested by: Assembly /City Council Drafted by: City of Kodiak Introduced: 06/07/07 Adopted: A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY RESCINDING RESOLUTION FY2006 -27 AND ESTABLISHING A JOINT KODIAK FISHERIES ADVISORY COMMITTEE WHEREAS, Kodiak is a fishing community, and Kodiak's economic health and social welfare depend on the sustained ability of its residents to harvest and process the marine resources of the Gulf of Alaska and the Bering Sea; and WHEREAS, State and Federal fishery management actions determine whether the marine resources of the Gulf of Alaska and the Bering Sea are managed for sustained yield; and WHEREAS, State and Federal fishery management actions can determine the extent to which Kodiak's residents have the ability to harvest and process the marine resources of the Gulf of Alaska and the Bering Sea, can alter the economic and social relationships among Kodiak's harvesters, processors and fishery support businesses, and can affect the overall economic health and social welfare of the Kodiak community at large; and WHEREAS, it is in Kodiak's best interests for its Borough and City governments to be well informed regarding the potential impacts of State and Federal fishery management actions on the Kodiak community and to have an opportunity to effectively comment on such actions before they are taken; and WHEREAS, it is in Kodiak's best interests to facilitate consensus among Kodiak's harvesters, processors, businesses and citizens -at -large concerning potential fishery management actions, both to promote harmony in the community and to enhance Kodiak's ability to influence State and Federal fishery policy makers and managers; and WHEREAS, the Kodiak Island Borough and Kodiak City Council have determined that a properly constituted fisheries advisory committee can provide valuable assistance to the Borough Assembly and City Council by identifying fishery management actions that could affect Kodiak and by preparing community position statements regarding such fishery management actions for the Borough Assembly and City Council's consideration; and WHEREAS, the Kodiak Island Borough Assembly and the Kodiak City Council have determined that a properly constituted fisheries advisory committee could serve as a forum for building consensus within the Kodiak community regarding fishery management actions; NOW, THEREFORE, BE IT RESOLVED, THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH urge that Resolution FY2006 -27 be rescinded, and the "Kodiak Fisheries Advisory Committee" is hereby created to take the place of the "Gulf Groundfish Rationalization Task Force "; and BE IT FURTHER RESOLVED THAT: (1) The purposes of the Kodiak Fisheries Advisory Committee shall be to provide recommendations, when appropriate, to the Kodiak Island Borough Assembly and the Kodiak City Council regarding a Kodiak position on fisheries issues, and to provide a forum for Kodiak Island Borough, Alaska Resolution No. FY2007 -38 Page 1 of 3 interested parties to discuss, and, to the degree possible, reach consensus on fisheries issues affecting Kodiak's fishermen, processors, businesses and residents. (2) The Kodiak Fisheries Advisory Committee shall be composed of individuals representing the following Kodiak community interest groups as follows: Interest Group: Large Pot Vessels Large Trawl Vessels Large Longline Vessels Jig Vessels Crewmembers Large Processors ADF &G Advisory Committee Business Community (non fishing related) Conservation Community Small Pot Vessels Small Trawl Vessels Small Longline Vessels Salmon /Herring Net Vessels Kodiak Rural Communities Small Processors Lodge /Charter Boat Operators Citizen -At -Large (3) The term of Kodiak Fisheries Advisory Committee appointments shall be three (3) years, provided that appointees' terms shall extend until their replacements are named and accept their appointment, and further provided that the Borough Assembly and City Council may modify the term of any or all Committee appointments at any time, the City Council and Borough Assemble may remove any member at any time, or may disband the entire Fisheries Advisory Committee at any time, as the City Council and Borough Assembly deem appropriate in their sole discretion. (4) Appointment to the Kodiak Fisheries Advisory Committee confers no rights or authority other than to make recommendations to the Borough Assembly and City Council concerning State and Federal fisheries management actions from time to time, which the Borough Assembly and City Council may accept or reject in their sole discretion. (5) Appointment to the Kodiak Fisheries Advisory Committee is conditioned on appointees acknowledging and agreeing that their service on the Committee is voluntary and without compensation. (6) Representatives of the City of Kodiak and the Kodiak Island Borough and Kodiak residents serving on the North Pacific Fishery Management Council, the North Pacific Council's Advisory Panel and the Alaska Board of Fisheries shall be ex officio, non - voting members of the Kodiak Fisheries Advisory Committee. However, ex- officio members may also serve as a voting representative of a designated interest group. (7) Kodiak Fisheries Advisory Committee members shall have the authority to designate an alternate prior to a meeting if the member cannot attend. (8) The Kodiak Fisheries Advisory Committee shall have the authority to develop procedures for calling and conducting Committee meetings, determining the Committee's position on issues and resolving other Committee organizational matters. Kodiak Island Borough, Alaska Resolution No. FY2007 -38 Page 2 of 3 ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2007 Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor Kodiak Island Borough, Alaska Resolution No. FY2007 -38 Page 3 of 3 CITY OF KODIAK REOLUTION NUMBER 07. 4 -P ow A RESOLUTION OF THE COUNCIL OF THE CITY OF KODIAK RESCINDING RESOLUTION 06 -2 AND ESTABLISHING A JOINT KODIAK FISHERIES ADVISORY COMMITTEE WHEREAS, Kodiak is a fishing community, and Kodiak's economic health and social welfare depend on the sustained ability of its residents to harvest and process the marine resources of the Gulf of Alaska and the Bering Sea; and WHEREAS, State and Federal fishery management actions determine whether the marine resources of the Gulf of Alaska and the Bering Sea are managed for sustained yield; and WHEREAS, State and Federal fishery management actions can determine the extent to which Kodiak's residents have the ability to harvest and process the marine resources of the Gulf of Alaska and the Bering Sea, can alter the economic and social relationships among Kodiak's harvesters, processors and fishery support businesses, and can affect the overall economic health and social welfare of the Kodiak community at large; and WHEREAS, it is in Kodiak's best interests for its City and Borough governments to be well informed regarding the potential impacts of State and Federal fishery management actions on the Kodiak community and to have an opportunity to effectively comment on such actions before they are taken; and WHEREAS, it is in Kodiak's best interests to facilitate consensus among Kodiak's harvesters, processors, businesses and citizens -at -large concerning potential fishery management actions, both to promote harmony in the community and to enhance Kodiak's ability to influence State and Federal fishery policy makers and managers; and WHEREAS, the Kodiak City Council and the Kodiak Island Borough Assembly have determined that a properly constituted fisheries advisory committee can provide valuable assistance to the City Council and Borough Assembly by identifying fishery management actions that could affect Kodiak and by preparing community position statements regarding such fishery management actions for the City Council and the Borough's Assembly's consideration; and WHEREAS, the Kodiak City Council and the Kodiak Island Borough Assembly have determined that a properly constituted fisheries advisory committee could serve as a forum for building consensus within the Kodiak community regarding fishery management actions; NOW, THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE CITY OF KODIAK that Resolution 06 -2 is rescinded, and the "Kodiak Fisheries Advisory Committee" is hereby created to take the place of the "Gulf Groundfish Rationalization Task Force "; and BE IT FURTHER RESOLVED THAT: (1) The purposes of the Kodiak Fisheries Advisory Committee shall be to provide recommendations, when appropriate, to the Kodiak City Council and the Kodiak Island Borough Assembly regarding a Kodiak position on fisheries issues, and to provide a forum for interested parties to discuss, and, to the degree possible, reach consensus on fisheries issues affecting Kodiak's fishermen, processors, businesses and residents. (2) The Kodiak Fisheries Advisory Committee shall be composed of individuals representing the following Kodiak community interest groups as follows: Interest Group: Large Pot Vessels Large Trawl Vessels Large Longline Vessels Jig Vessels Crewmembers Large Processors ADF &G Advisory Committee Business Community (non fishing related) Conservation Community Small Pot Vessels Small Trawl Vessels Small Longline Vessels Salmon/Herring Net Vessels Kodiak Rural Communities Small Processors Lodge /Charter Boat Operators Citizen -At -Large (3) The term of Kodiak Fisheries Advisory Committee appointments shall be _ years, provided that appointees' terms shall extend until their replacements are named and accept their appointment, and further provided that the City Council and Borough Assembly may modify the term of any or all Committee appointments at any time, the City Council and Borough Assemble may remove any member at any time, or may disband the entire Fisheries Advisory Committee at any time, as the City Council and Borough Assembly deem appropriate in their sole discretion. (4) Appointment to the Kodiak Fisheries Advisory Committee confers no rights or authority other than to make recommendations to the City Council and Borough Assembly concerning State and Federal fisheries management actions from time to time, which the City Council and Borough Assembly may accept or reject in their sole discretion. (5) Appointment to the Kodiak Fisheries Advisory Committee is conditioned on appointees acknowledging and agreeing that their service on the Committee is voluntary and without compensation. (6) Representatives of the City of Kodiak and the Kodiak Island Borough and Kodiak residents serving on the North Pacific Fishery Management Council, the North Pacific Council's Advisory Panel and the Alaska Board of Fisheries shall be ex officio, non - voting members of the Kodiak Fisheries Advisory Committee. However, ex- officio members may also serve as a voting representative of a designated interest group. (7) Kodiak Fisheries Advisory Committee members shall have the authority to designate an alternate prior to a meeting if the member cannot attend. (8) The Kodiak Fisheries Advisory Committee shall have the authority to develop procedures for calling and conducting Committee meetings, determining the Committee's position on issues and resolving other Committee organizational matters. Nova Javier From: Freed, Linda [Ifreed @city.kodiak.ak.us] Sent: Tuesday, May 29, 2007 8:07 AM To: Debora King; Al Burch; Cecil Ranney; Charles Thompson; Dana Reid; Trevor Brown; Donna Jones; Duncan Fields; FN Point Omega; fishtalerulz©yahoo.com; Gabriel Saravia; Jay Stinson; Jeff Stephan; Jerry Bongen; Joe Sullivan; John Whiddon; Julie Bonney; Julie /Ron Kavanaugh; Kent Helligso; Linda Kozak; Matt Moir; mrmartin @gci.net; Oliver Holm; Peter Allan; Rick Gifford; Steve Branson; Terry Haines; Theresa Peterson; Walter Sargent Cc: Volpe, Barbara; Casey Kelly (E- mail); Bryan Martin (E- mail); Al Burch (E- mail); Al Unruh (E- mail); Alexus Kwachka (E- mail); Bruce Schactler (E- mail); Bryan Martin (E- mail); Casey Kelly (E- mail); Chris Holland (E- mail); Cindy Harrington (E- mail); Cliff Farley (E- mail); Dan James (E- mail); Dan Ogg (E- mail); Danny Powell (E- mail); Dave Woodruff (E- mail); Denby Lloyd (E- mail); Donna Jones (E- mail); Doug Hoedel (E- mail); Duncan Fields (E- mail); Gabrielle LeDoux (E- mail); Gary Cobban (E- mail); Greg Hathaway (E- mail); Jay Stinson (E- mail); Jeff Steele (E- mail); Jeff Stephan (E- mail); Jerry Bongen (E- mail); Joe Macinko (E- mail); Joe Sullivan (E- mail); John Whiddon (E- mail); Jon Black (E- mail); Julie Bonney (E- mail); Lacey Berns (E- mail); Lauri Whiddon; Linda Kozak (E- mail); Lu Dochtermann (E- mail); Mark Alwert (E- mail); Marlar, Debra; Matthew Moir (E- mail); Michael Martin (E- mail); Mike and Robin Clark (E- mail); Mike Simpson (E- mail); Mitch Kilborn (E- mail); Nova Javier; Oliver Holm (E- mail); Peter Allan (E- mail); Peter Thompson (E- mail); Phil & Lisa Robbins (E- mail); Rick Gifford; Roland Ruoss (E- mail); Ron and Julie Kavanaugh (E- mail); Ryan Johnson (E- mail); Scott Smiley (E- mail); Shawn Dochtermann (E- mail); Shawn Koson (E- mail); Stephen Taufen (E- mail); Stosh Anderson (E- mail); Theresa Peterson' (E- mail); Thom Wischer (E- mail); Tim Blott (E- mail); Todd & Cecile Hiner (E- mail); Virginia Adams (E -mail) Subject: Joint Kodiak Fisheries Advisory Committee - City Council passed authorizing resolution Thursday, May 24th Hello All: I'm sorry if you receive this e -mail twice, but I wanted to make sure that I got it to everyone on my two fish lists. The purpose of this e -mail is to inform you that the Kodiak City Council passed Resolution 07 -17 authorizing the creation of a Joint Kodiak Fisheries Advisory Committee at their meeting on Thursday, May 24th. The Kodiak Island Borough Assembly has a similar resolution on their June 7th meeting agenda. The Council and Assembly will meet in a joint work session on June 19th to discuss naming members to the Committee. The City Council could formally appoint members to the committee at their meeting on June 28th and the Borough Assembly sometime after this. If you would like to serve on the committee and /or want to nominate someone else for one of the seats, please submit a letter of request /support to either the City or Borough clerk's office by 4:30 pm on June 18th. Please make sure that the nominated committee member's name and affiliation is clearly noted in the letter. Also, it is my understanding that the Borough clerk will formally advertise the positions for this committee after the Assembly adopts their authorizing resolution. Thanks. Linda L. Freed City Manager, City of Kodiak 710 Mill Bay Road Kodiak, Alaska 99615 (Am) 4Pg -P640 ( r ,-'o) (907) 486 -8600 (fax) lfreed @city.kodiak.ak.us 1 Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No.13.B.2 Resolution No. FY2007 -29A Rescinding Resolution No. FY2007 -29 and Authorizing the Borough Manager to Sign a New Memorandum of Agreement (MOA) Transferring Responsibilities for Legislatively Approved Capital Projects and Grant Funds for Village Projects and Equipment to the Community of Ouzinkie. The Borough received a number of 2006 legislative grants on behalf of the villages in the Borough. These grants were a result of the Capital Improvement Program (CIP) projects list sent to and approved by the Alaska State Legislature. Among these funded projects is the: Ouzinkie Dock Replacement - $570,000 The Borough was identified as the grantee under the grant. To try to have the State and Ouzinkie deal directly with the provisions of the grant, the Assembly approved a trilateral MOA. The MOA would formalize a relationship between the City of Ouzinkie and the State of Alaska to deal directly with each other leaving the Borough out of it. Though first agreeing, the State of Alaska has come back and stated that this can not happen. Therefore the grantee must remain with the Kodiak Island Borough. The Borough Attorney has drafted a new MOA between KIB and Ouzinkie that places all responsibilities and liability on the City of Ouzinkie. The Borough remains the grantee and is responsible to reimburse Ouzinkie for expenditures as well as perform grant reporting and other grant compliance issues. This MOA formalizes those responsibilities between the Kodiak Island Borough and City of Ouzinkie. Resolution No. FY2007 -29 needs to be rescinded because of substantial changes. Recommended motion: Move to adopt Resolution No. FY2007 -29A. A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY RESCINDING RESOLUTION NO. FY2007 -29 AND AUTHORIZING THE BOROUGH MANAGER TO SIGN A NEW MEMORANDUM OF AGREEMENT (MOA) TRANSFERRING CERTAIN RESPONSIBILITIES AND LIABILITY FOR LEGISLATIVELY GRANT #07 -DC -511 (OUZINKIE REPLACEMENT DOCK) TO THE CITY OF OUZINKIE WHEREAS, during the 2006 legislative session the Kodiak Island Borough received a grant #07 -DC -511 in the amount of $570,000 on behalf of the City of Ouzinkie for the design and construction of the Ouzinkie Replacement Dock project; and WHEREAS, the Borough Attorney has reviewed the requirements of the grant, and state statute and finds that meeting these conditions requires the acceptance of substantial liability associated with the project by the Borough for items that KIB has no direct control over (design issues, construction practices and future maintenance); and WHEREAS, the original MOA adopted by Resolution No. FY2007 -29 needs to be rescinded because of substantial changes; and WHEREAS, a new MOA has been drafted that transfers the liability associated with the project from the Borough to the City of Ouzinkie; and WHEREAS, the accounting, auditing and administration aspect of the grant is required to remain with and be performed by the Borough; and WHEREAS, though the grant allows a grant administration fee of up to 10 %, the borough elects not to charge the grant for services provided by KIB; and. WHEREAS, Borough Staff has been working with the City of Ouzinkie, the Ouzinkie Native Corporation, and the Spruce Island Development Corporation (SIDCO) to move this project forward by completing and accepting this MOA. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Resolution No. FY2007 -29 is rescinded and that the Borough Manager is authorized to sign the new Memorandum of Agreement with the City of Ouzinkie to transfer certain grant responsibilities and liabilities identified in State Grant #07 -DC -511 to the City of Ouzinkie who will be the ultimate owner and operator of the Ouzinkie Replacement dock. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TH DAY OF 2007 ATTEST: Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -29A Introduced by: Manager Gifford Requested by: Manager Gifford Drafted by: Com. Dev. Dir. Bud Cassidy Introduced: 06/07/2007 Adopted: KODIAK ISLAND OROUGH Jerome M. Selby, Mayor Kodiak Island Borough, Alaska Resolution No. FY2007 -29A Page 1 of 1 PURPOSE: MEMORANDUM OF AGREEMENT BETWEEN THE KODIAK ISALND BOROUGH AND THE CITY OF OUZINKIE REGARDING CITY OF OUZINKIE MANAGEMENT AND OPERATION OF THE OUZINKIE DOCK REPLACEMENT PROJECT This Memorandum of Agreement (Agreement) outlines the terms under which the Kodiak Island Borough (the Borough) agrees to authorize the City of Ouzinkie (hereinafter sometimes also referred to as City) to manage and operate the Ouzinkie Dock Replacement Project (hereinafter sometimes referred to as "Project" and the end product as "the Dock ") funded under Grant 07 -DC -511, issued by the Department of Commerce, Community and Economic Development (DCCED) (hereinafter sometimes referred to as "Grant Agreement "), attached hereto as Exhibit B and hereby incorporated by reference and consistent with the following: PROJECT TITLE: Ouzinkie Dock Replacement AGREEMENT EFFECTIVE DATE: June , 2007 AGREEMENT COMPLETION DATE: June 30, 2011 GRANT TERM: July 1, 2006 — June 30, 2011 SERVICES: A. KODIAK ISLAND BOROUGH SHALL: 1. Provide grant administration for Grant 07 -DC -511 to ensure compliance with grant provisions, including, but not limited to filing all progress and financial reports required by DCCED. 2. Reimburse the City of Ouzinkie for authorized expenditures incurred by the City for the Ouzinkie Dock Replacement Project in an amount not to exceed that provided for such purpose in the above referenced grant. These costs shall be reimbursed subject to compliance with the Project Budget, and any subsequent amendments to the Project Budget, and all other provisions of Grant 07 -DC -511, issued by the DCCED. B. THE CITY OF OUZINKIE SHALL: 1. Operate and manage the Ouzinkie Dock Replacement Project in compliance with the Scope of Work and all other provisions of Grant 07 -DC -511 and any subsequent amendments issued by DCCED. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 1 of 13 2. Procure engineering and design work, survey and mapping, geotechnical work, permitting and construction services for the Dock Replacement Project in compliance with the more stringent of Ouzinkie local ordinances, Kodiak Island Borough or State of Alaska procurement requirements. 3. As ultimate owner of the Dock to be designed pursuant to this Agreement, City expressly agrees to comply with the all grant provisions related to its ownership and management of the facility, including but not limited to those provisions listed below. The city also acknowledges that the Borough is not responsible for performance of the obligations of the property owner, that the City shall perform all such obligations, and shall hold the Borough harmless from any liability or causes of action arising from ownership and operation of the dock. Further, the City and Borough agree as follows - a. Notwithstanding the terms of Article 2 of Attachment C of the Grant Agreement, the Borough and City understand that the Grant Agreement is for the benefit of the parties to it but that the improvements arising out of the referenced grant are for the benefit of the City as the City will own the Dock to be constructed using the grant funds. Further, the City of Ouzinkie, its successors and assigns, will protect, save and hold harmless the State of Alaska, its DCCED, and the Kodiak Island Borough and their respective officers, officials, employees, agents and volunteers, from all claims, actions, costs, damages or expenses of any nature whatsoever by reason of the acts or omissions of the City, it's subcontractors, assigns, agents, contractors, licensees, invitees, employees or any person whomever arising out of or in connection with any acts or activities authorized by the referenced Grant Agreement and /or any activities arising there from or performed in connection therewith. The City further agrees to defend the State of Alaska, its DCCED and the Borough and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or actions commenced arising out of or in connection with acts or activities authorized by the referenced Grant Agreement and /or any activities arising there from or performed in connection therewith. This obligation shall not include such claims, costs, damages or expenses which may be caused by the sole negligence of the State of Alaska, its DCCED or the Borough or their authorized agents or employees, provided, that if the claims or damages are caused by or result from the concurrent negligence of (a) the DCCED and /or the State of Alaska or the Borough and /or their agents or employees, and (b) the City, it's agents or � this _� shall �� _ valid and r _ �_ � _ � employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the City, or the City's agents, employees, officials, officers and volunteers. b. In compliance with Attachment C, Article 24, of the Grant Agreement, the City hereby assumes all liabilities arising from the ownership and operation of the Project and agrees to hold the DCCED, the State of Alaska and the Kodiak Island Borough harmless from any and all causes Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 2 of 13 g. of action arising from the ownership and operation of the Project and /or use of the grant funds. c. Notwithstanding the representations in Attachment C, Article 25 of the Grant Agreement the Borough and City agree that a) the City owns the property or city will acquire the property to be benefited by the referenced grant, b) the City has the legal right to occupy the property and use the property for all purposes necessary or desirable to the grant and c) the City warrants that there is legal access to the property such that the Dock will realize the benefits of the referenced Grant and benefit from application of the grant funds. The City hereby grants the Borough all right of access necessary or desirable to the Borough for administering the Grant Agreement and as maybe further required of the Borough by the Grant Agreement. d. In compliance with Attachment C, Article 27 of the Grant Agreement, the City agrees and warrants that it will comply with the requirements regarding engineering services. e. In compliance with Attachment C, Article 31 of the Grant Agreement, the City agrees and warrants that the Dock shall be dedicated to public purposes for its useful life and further that the benefits of the Project shall be made available without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. f. In compliance with Attachment C, Article 32, of the Grant Agreement, the City agrees that it will be solely responsible for the operation and maintenance of any facility, improvements, equipment or other items acquired under the referenced Grant between DCCED and the Borough. Re: Appendix B2 Articlel of the Grant Agreement — Notwithstanding any other indemnity term in this Agreement the City shall indemnify, save harmless and defend the State of Alaska and the Kodiak Island Borough, their officers, agents, employees, officials and volunteers from all liability, including costs and expenses, for all actions or claims resulting from injuries or damages sustained by any person or property arising directly or indirectly as a result of any error, omission or negligent act of the City or it's subcontractor(s), their employees, officers, officials, agents and volunteers or anyone directly or indirectly employed by them in the performance of the contract or construction Project or the use of the Grant funds. All actions or claims including costs and expenses resulting from injuries or damages sustained by any person or property arising directly or indirectly from the City's performance of this Agreement which are caused by the joint negligence of the Borough or State and City shall be apportioned on a comparative fault basis. Any such joint negligence on the part of the State or Borough must be a direct result of active involvement by the State or Borough. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 3 of 13 h. Appendix E /Site Control - The City shall provide the Borough evidence satisfactory to the Borough that the City has control or will have control of the project site, including but not limited to, construction, construction, utility projects, fuel storage, road and trails necessary or desirable for successful use of the grant funds and project completion. The City hereby grants to the Borough authorization, to the extent the Borough deems necessary or desirable, to use or access the Ouzinkie Dock and such other City property as roads, fields and /or utilities, in connection with construction of the Ouzinkie Dock with the grant funds referenced in this Agreement. i. All other provisions of the Grant Agreement are incorporated herein by reference and to the extent the Grant Agreement places burdens on the Borough, which burdens are in the Borough's sole discretion more appropriately burdens of the City, the City hereby assumes such burdens. 4. Request prior approval from the Borough and DCCED for any work contracted to a third party and meet all other requirements for third party agreements including but not limited to those contained in Sections C 9, 10 and 11 of this Agreement, all applicable provisions of Grant 07 -DC -511 as amended, and the City of Ouzinkie Code of Ordinances. 5. Provide documentation and reports requested by the Borough to ensure compliance with grant provisions. Further, the City agrees that the Department of Commerce and Community Economic Development of the State of Alaska and other authorized representatives of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records, and books or the City, and of persons or organizations with which the City may contract under this Agreement. C. ADDITIONALLY, THE PARTIES AGREE AS FOLLOWS: 1. Grant Agreement No. 07 -DC -511, Ouzinkie Dock Replacement, effective November 14, 2006 is herein incorporated in its entirety by reference. The parties agree that all provisions of the Grant Agreement between the Borough and the Department of Commerce, Community and Economic Development (DCCED) are herein incorporated as if enumerated herein. Notwithstanding that the above referenced Grant Agreement is between the State of Alaska and the Kodiak Island Borough, as between the Kodiak Island Borough and the City of Ouzinkie, the City agrees to assume all burdens, duties and obligations (however termed or characterized) ascribed to the Borough as grantee but which arise from, or relate to 1) City's ownership or 2) operation of the facility to be improved or related property, release the Borough from the same, and indemnify, defend and hold harmless the Kodiak Island Borough from all such duties, obligations and burdens, including but not limited to those stated in Article 2; Article 24; Article 25; Article 27; Article 31; Article 32; Appendix B 2 Articlel; Appendix E /Site Control of the Grant Agreement. The parties to this Agreement shall cooperate in implementing the terms of the Grant Agreement. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 4 of 13 2. Compensation. a. Total Compensation. Unless expressly agreed to in writing by the Borough and City, the maximum payment by the Borough to City for the portion of this Project funded by Grant 07 -DC -511 shall be $570,000 or the entire amount of the grant. No administrative fees for managing this grant will be charged against the grant. b. Manner of Payment. The Borough shall make payments to the City as follows: City shall submit monthly invoices for services rendered and for reimbursable expenses incurred within sixty (60) day of performance of the service or incurring the expense unless an extension is authorized in writing by the Borough Manger. The invoice shall itemize the hours worked, tasks addressed and /or completed, identifying the number and classification of hours worked in each task. Reimbursables shall be supported by true, correct and legible copies of City's invoices for authorized reimbursables, check copies or other proof of payment, copies of payroll records including signed and approved timesheets, payroll checks, and fringe benefit costs. The Borough may refuse any claim for services or expenses a) for monthly invoices made more than sixty (60) days after performance of the service or incurring the expense (without an extension) or b) for the final invoice, made more than fifteen (15) days after the termination date of Grant Agreement. If the Borough objects to any invoices or portions thereof submitted by the City, the undisputed portion shall be paid. 3. Termination. This Agreement may be terminated by either party for any reason, prior to its expiration date on thirty (30) days written notice to the other party however the Borough shall be entitled to terminate this Agreement for its convenience upon seven days notice to City and limit its obligations to the City to amounts earned, incurred or obligated by the City prior to receipt of the termination for convenience notice from the Borough. If Grant 07 -DC -511 is terminated or suspended by DCCED for any reason prior to the termination date in the Grant Agreement, this Agreement shall be terminated on the same date. If this Agreement is terminated for any reason, the Department of Commerce, Community and Economic Development shall be notified in writing addressed to DCCED Grants Section, PO Box 110809, Juneau, Alaska 99811 -0809 within ten d ays of such termination days _ I �u�.� i termination. n 1 IuuvI i. 4. Insurance. City will submit certificates of insurance for this Agreement and agrees to the conditions regarding insurance as set forth above and in attached Exhibit A, which is incorporated herein by reference and made a part of this Agreement. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 5 of 13 5. Notice to Proceed. This Agreement shall not be binding upon the Borough or City until the Borough furnishes City a Notice to Proceed. The Notice to Proceed shall be attached to and made a part of this Agreement. Any work done by City before the Notice is furnished and attached to this Agreement shall be at City's own expense and risk, provided however, that work performed by City before receipt of the Notice to Proceed (early work), and which is consistent with this agreement and approved in writing by Borough before or after performance of such work, shall be compensated for under this Agreement, if such Notice to Proceed is later furnished by Borough and attached to this Agreement together with the Borough's written approval of the "early work ". 6. Indemnity. City agrees to indemnify, defend [with legal counsel approved by Borough], and hold the Borough and its administrators, officers, agents, employees, volunteers and servants and the Department of Commerce, Community and Economic Development and the State of Alaska and its administrators, officers, agents, employees, volunteers and servants harmless from and against any and all claims, demands, actions, losses, expenses, and liabilities for, or related to, loss of or damage to property or injury to or death of any person relating to or arising or resulting in any way from the performance by City or any of its Subcontractors under the Agreement, or the work or services provided or the condition or use thereof, regardless of any negligence of the Borough or DCCED, excepting only such loss, damage, injury or death which results solely from the negligence or willful misconduct of the Borough or DCCED or solely from the joint negligence or willful misconduct of Borough or DCCED and a third party directed by Borough or DCCED. This clause shall be read and construed consistent with any other same or similar clause in this Agreement such that the Borough and State derive maximum benefit of defense, indemnity and hold harmless from the City. 7. Third Party Contracts. Prior approval by the Borough and DCCED is required for any work to be contracted to a third party. Any subcontractor shall be bound to every provision of the Grant Agreement and each subcontract shall include a provision that the Borough, DCCED and the State of Alaska are not liable for damages or claims for damages arising from any subcontractor's performance or activities under the terms of the subcontract. 8. Conflict of Interest. No officer, employee or member of the Borough or City or of any subcontractor; no member of the governing body of the jurisdiction in which the project is undertaken or located; and no other official of such locality or ILJI.,QIILIGJ VVI IIJ exercises any functions 10 lJI I GJ IJILJIIIUGJ VVILI I I GJ to the project during his or her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in any contract, subcontract or the proceeds thereof, for work to be performed in connection with the project assisted under the Grant 07 -DC -511. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 6 of 13 9. Discrimination. City may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. City shall post in a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. a. The City shall state, in all solicitations or advertisements for employees to work on this project (a state funded project), that it is an equal opportunity employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy or parenthood. b. The City shall include the provisions of this Discrimination article in every contract relating to this Agreement and the Borough's Grant Agreement from which this Agreement is derived, and shall require inclusion of these provisions in every agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor or subcontractor. 10. Compliance with Laws. City agrees to comply with all applicable federal, state and local laws and regulations. 11. Audit. The City agrees that it is bound to, and subject to, all terms of the incorporated "Appendix A Audit Regulations" and "Appendix B Audit Compliance Supplement" to the Grant Agreement. 12. Law and Venue. The law of the State of Alaska shall govern this Agreement. Venue for any legal proceeding relating to this Agreement shall be in the Superior Court in Kodiak, arrow, Alaska. 13. Notice. Unless otherwise provided herein, any notices or other communications required or permitted by this Agreement to be delivered to the Borough or City shall be in writing and shall be considered delivered when personally delivered to the party to whom it is addressed, or in lieu of such personal delivery, when deposited in the United States mail, first class certified mail with return receipt requested, postage prepaid, addressed to the Borough or City at the address set forth below: Kodiak Island Borough Attn: Borough Manager 710 Mill Bay Road Kodiak, Alaska 99615 City of Ouzinkie Zack Chichenoff, Mayor D11 Bo 109 v uvn i vv Ouzinkie, Alaska 99644 14. Entire Agreement. This Agreement constitutes the entire agreement between the Borough and City as to the matters stated herein. It supersedes all prior oral and written understandings and agreements as to such matters. It may be amended, supplemented, modified or canceled only by a duly executed written instrument. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 7 of 13 DATED the day and year last written below. Rick Gifford, Manager Date Zack Chichenoff, Mayor Date Kodiak Island Borough City of Ouzinkie ATTEST: Clerk It shall bind the Borough and City, its successors, executors, administrators, assigns and legal representatives. REVIEWED AS TO FORM: Kodiak Island Borough Attorney Date Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 8 of 13 Insurance Requirements for City. EXHIBIT A INSURANCE REQUIREMENTS It is highly recommended that City confer with its insurance companies or brokers to determine if its insurance program complies with the Borough's insurance requirements. City shall procure and maintain the following insurance: A Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office form number CG 0001 (Edition 10 01) covering Commercial General Liability. 2. Insurance Services Office form number CA 0001 (Edition 7 97) covering Automobile Liability, symbol 1 "any auto ". 3. Workers' Compensation insurance as required by the State of Alaska and Employer's Liability Insurance. 4. Professional Liability insurance against liability arising out of the rendering or failure to render professional services under this Agreement on a form acceptable to the Borough. 5. Employee Dishonesty insurance for loss to the Borough's property or money, caused by the fraudulent or dishonest acts of City's employees or subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, whether acting alone or in collusion with others. Note: Employee Dishonesty insurance is required only for those Agreements where City has access to Borough money, securities, purchase orders, checks or any other Borough funds. B Minimum Limits of Insurance City shall maintain limits no less than: 1. General Liability $1,000,000 combined single limit per occurrence for bodily injury, property damage, personal injury and advertising injury. The general aggregate limit shall be $2,000,000. The general aggregate limits shall apply separately to each project. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 9 of 13 General liability insurance shall be maintained in effect until final acceptance by the Borough of the completed construction and, for products liability and completed operations liability, at least five years thereafter. If the general liability insurance is written on a claim made form, the City shall provide insurance for a period of five years after final payment of this agreement. The policy(s) shall evidence a retroactive date, no later than the beginning of this agreement If the City utilizes a subcontractor(s) to perform any part of the work under this contract, the general liability insurance shall not contain any endorsements that exclude the work of the subcontractor(s). 2. Auto Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. For any Borough auto(s) being driven by the City (including any employee, supervisor, manager, agent, sub - Contractor or their employee, supervisor, manager, agent, etc.), the City agrees to insure that vehicle(s) as a scheduled auto(s) to their auto policy. It is agreed that the City's auto policy will: (a) Provide the primary liability insurance for the Borough auto(s) as though the auto(s) were a leased auto(s), naming the Borough as an additional insured and loss payee; and (b) Provide for physical damage losses (both comprehensive and collision) with a deductible of no more than $1,000 per accident and naming the Borough as an additional insured and loss payee. 3. Workers' Compensation and Employer's Liability: Workers' Compensation shall be statutory as required by the State of Alaska. Employer's Liability shall be endorsed to the following minimum limits: Bodily Injury By Accident - $1,000,000 each accident; Bodily Injury By Disease - $1,000,000 each employee; Bodily Injury By Disease - $1,000,000 policy limit. 4. Professional Liability: $1,000,000 combined single limit per occurrence. The general aggregate limit shall be $1,000,000. The professional liability insurance shall be maintained in effect until final acceptance by the Borough of the completed project. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 10 of 13 If the professional liability insurance is written on a claim made form, City shall provide insurance for a period of five years after final payment of this Agreement. The policy(s) shall evidence a retroactive date, no later than the beginning of this Agreement. 5. Employee Dishonesty: $500,000 per claim. 6. Excess Liability: In order to meet the required minimum limits of insurance it is permissible for City to combine an excess liability or umbrella policy with the general liability, auto liability or employer's liability. In the instance where City purchases an excess liability or umbrella policy the occurrence limit and the aggregate limit may be of the same amount on the excess liability or umbrella policy. Excess liability insurance, if any, shall be maintained in effect until final acceptance by the Borough of the completed construction, project, services, or contract, and, for products liability and completed operations liability, at least five years thereafter. If the excess liability insurance is written on a claim made form, the City shall provide insurance for a period of five years after final payment of this agreement. The policy(s) shall evidence a retroactive date, no later than the beginning of this agreement. C. Deductibles and Self- Insured Retention Prior to work commencing any deductible or self- insured retention must be declared and approved by the Borough. City may be requested to demonstrate how the deductible or self- insured retention will be funded in the event of a claim. At the option of the Borough, City shall reduce or eliminate such deductibles or self- insured retention as respects the Borough, its officers, officials, employees and volunteers; or City shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions Tho poli are to c ontain or be ondorcorl to contain the follo p r ov i s ion s: 111 policies LAIN lV VV111.1.1111, VI 1✓V VI IV VI JVV to VVI1.1:A11I 1.11V following J 1 1IV YIJIVI IJ. 1. General Liability, Automobile Liability and Excess Liability (a) The Borough, its officers, officials, employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of City; products and completed operations of City, premises owned, occupied or used by City, or automobiles owned, Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 11 of 13 leased, hired or borrowed by City. The coverage shall contain no special limitation on the scope of protection afforded to the Borough, its officers, officials, employees and volunteers. (b) City's insurance coverage shall be primary insurance as respects the Borough, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the Borough, its officers, officials, employees and volunteers shall be excess of City's insurance and shall not contribute to it. (c) City's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employer's Liability The City's insurer shall agree to waive all rights of subrogation against the Borough, its officers, officials, employees and volunteers for losses arising from work performed by City or any subcontractor for the Borough. 3. All Insurance Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after 30 days prior written notice for nonpayment of premium or fraud on the part of City or 60 days prior written notice for any other reason by certified mail, return receipt requested, has been given to the Borough. Such notice shall be mailed by City's insurer(s) to the attention of the Borough's Risk Manager. 4. Added Insured The Borough and State of Alaska / DCCED shall be identified as certificate holders and as additional insureds on City's insurance and the certificate(s) on its face shall demonstrate that the requirements of D 1 — 4 (in this Exhibit A) above are met. E. Acceptability of Insurers Insurance is to be placed with insurers with a Best's rating of no less than A +. F. Verification of Coverage City shall furnish the Borough with approved certificates of insurance and with certified copies of all endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms provided by the Borough. All certificates are to be Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 12 of 13 received and approved by the Borough before the contract is processed. The Borough reserves the right to require complete, certified copies of all required insurance policies, at any time. G. Subcontractors City shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all requirements stated herein. Memorandum of Agreement — City of Ouzinkie Dock Replacement -- Page 13 of 13 New KIB - MOA.DOC Bud Cassidy • From: Kevin Smith [kevins @amljia.org] Sent: Thursday, May 10, 2007 2:37 PM To: Bud Cassidy; stevem @amIjia.org; Linda Getz Cc: KARL SHORT; Rick Gifford Subject: Re: New KIB - MOA.DOC Bud: Page 1 of 1 The language looks pretty thorough to me. As Ouzinkie is in the AMLJIA program, I'm comfortable in saying that their coverage will meet these requirements. Let me know if we can be of further assistance. Kevin Original Message From: Bud Cassidy To: stevem @amljia.org ; kevins @amljia.orq ; Linda Getz Cc: KARL SHORT ; Rick Gifford Sent: Thursday, May 10, 2007 8:36 AM Subject: New KIB - MOA.DOC Steve or Kevin (Kevin - I understand Steve is out of town until Monday) - Our Attorney suggests that "Attachment A" of this agreement be reviewed. Should you have any questions, let me know. Thanks, Bud «New KIB - CoO MOA.DOC» 5/28/2007 r � }< �.�r ; . �,�. . � �.: ;< � � � ,� � ~ ¢ �� °x �r� ; � r i '•;��; �.� �� ..y�p � .�' - r �Y k �.q� # WT �. . . .... . ., j, �, « ��,.: �< � �� ' r` �,� � a>� , `��. . u� � E. �,:� F�.' ,� ` � �.�. .. . . . � , ,� , �1 = '� ' ,� ,. . � : Q \ '. . 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ON t'ROKCT N0: � UA1084 C� OF Z Regular Meeting of June 7, 2007 Kodiak Island Borough AGENDA STATEMENT Item No. 13.B.3 Resolution No. FY2007 -39 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY DECLARING AN 84.38 ACRE PORTION OF BOROUGH LAND, DESCRIBED AS TRACTS B1, B2, B3 AND B4- A,BELLS FLATS ALASKA SUBDIVISION, A SURPLUS TO BOROUGH NEED, AND AUTHORIZING THE BOROUGH MANAGER TO NEGOTIATE DIRECTLY WITH THE PETITIONERS FOR A DISPOSAL OF BOROUGH LAND BY LEASE FOR FAIR MARKET VALUE The KIB Planning and Zoning Commission approved the above referenced disposal of Borough land for fair market value after a public hearing held on April 18, 2007. In accordance with KIBC Title 18, the Kodiak Island Borough Assembly is the final authority with regard to requests to dispose of interest in borough land as follows: Kodiak Island Borough Code Section 18.20.030 states: 18.20.030 Review by planning commission -- Assembly approval. Except for disposal required by law: A. Each disposal of borough land is subject to review by the planning commission before submission to the assembly. The commission by resolution shall make a recommendation to the assembly regarding the proposed land disposal. B. Borough land disposal that are not subject to approval by ordinance are subject to approval by assembly resolution. The resolution shall specify the terms and conditions upon which the disposal will be offered. (Emphasis added) Attached is a copy of the Planning and Zoning Commission Recommendation including a hearing decision letter, applicable minutes of the April 18, 2007 Regular P &Z Commission Meeting, and the Staff report for Planning & Zoning Commission Case No. 07 -021. C:......I AL. +...+. C......... - :4...... �..... . : . . . . . J Nn nn A ....+ /�...........1 r.......1. P I A Fiscal N ILANCIIUILUIC RCI.{UIIGU .pU.UU P1laa. VCIICIdI rUIIU. I1f% Recommended motion: Move to adopt Resolution No. FY2007 -39. CORRECTED VERSION KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -39 Introduced by: Manager Gifford Requested by: Manager Gifford Drafted by: Planning & Zoning Com. Introduced: 06/07/2007 Adopted: A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY DECLARING AN 84.38 ACRE PORTION OF BOROUGH LAND, DESCRIBED AS TRACTS B1, B2, B3 AND B4 -A, BELLS FLATS ALASKA SUBDIVISION AS SURPLUS TO BOROUGH NEED, AND AUTHORIZING THE BOROUGH MANAGER TO NEGOTIATE DIRECTLY WITH THE PETITIONER FOR A DISPOSAL OF BOROUGH LAND BY LEASE FOR FAIR MARKET VALUE WHEREAS, KIB Code 18.20.120 allows the Borough Assembly to authorize the Borough Manager to negotiate directly with parties requesting a disposal of interest in Borough land; and WHEREAS, KIB Code 18.20.060 allows citizens to apply for a disposal of interest in Borough land; and WHEREAS, KIB Code 18.60.010 allows the Borough Assembly to approve contracts for the sale of "materials" owned by the borough; and WHEREAS, KIB Code 18.40.010 allows the Borough Assembly to establish specific leasing procedures by resolution; and WHEREAS, the Planning and Zoning commission, after holding a public hearing on the request, determined by resolution that Tracts B1, B2, B3, and B4 -A are surplus to borough need and recommended a disposal by lease for fair market value subject to certain stipulations that are recommended that the Assembly include in the proposed lease agreement to meet certain planning and community objectives; NOW, THEREFORE, BE IT RESOLVED, BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Section 1: That an 84.38 acre portion of borough land described as Tracts B1, B2, B3 and B4 -A, Bells Flats Alaska Subdivision is hereby declared surplus to the borough's need and authorized for disposal to the petitioner Brechan Enterprises, Inc., by lease for full and true market value for the purpose of resource extraction. Section 2: The Assembly, in accordance with KIBC Title 18, hereby authorizes the Borough Manager to negotiate with the petitioner, Brechan Enterprises, Inc., for a short -term lease, which includes a material sales contract, with similar terms and conditions as in the current lease and other relevant provisions of KIBC Title 18. The short -term lease and materials sales contract will be presented to the Assembly for their approval. Section 3: The Assembly, in accordance with KIBC Title 18, hereby authorizes the Borough Manager to negotiate with the petitioner, Brechan Enterprises, Inc., for a Tong -term lease, which includes a material sales contract, in accordance with relevant provisions of KIBC Title 18. The Tong -term lease and material sales contract will be presented to the Assembly for their approval. Section 4: The Assembly hereby acknowledges the stipulations that were recommended by the Planning & Zoning Commission and request the manager to consider these items during the negotiation of the Tong -term lease. Kodiak Island Borough, Alaska Resolution No. FY2007 -39 Page 1 of 2 1. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation of the lease area at the time resource extraction activities are to be concluded. The process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 2. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 3. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through lease negotiation. 4. A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease. 5. The lease shall be for a period of five (5) years with two three (3) year renewals at the discretion of the Assembly. 6. The Assembly may permit a "temporary lease" of the lease area, under the provisions of the existing lease agreement, for a period not to exceed six (6) months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 7. Hours of operation (per Brechan Enterprises, Inc. letter a.m. to 7 p.m., Monday through Saturday, with no work on 8. The buffer zones, laid out in the Brechan Enterprises, Inc. shall be maintained and kept in a topography that surrounding area. ATTEST: Nova M. Javier, CMC, Borough Clerk Kodiak Island Borough, Alaska March 1, 2007) shall be 7 Sundays. letter dated March 1, 2007, blends smoothly into the 9. All prudent efforts shall be used to minimize the noise level during operations. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2007 KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor Resolution No. FY2007 -38 Page 2 of 2 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -39 Introduced by: Manager Gifford Requested by: Manager Giffordl Drafted by: Planning & Zoning Com. Introduced: 06/07/2007 Adopted: A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY DECLARING AN 84.38 ACRE PORTION OF BOROUGH LAND, DESCRIBED AS TRACTS B1, B2, B3 AND B4- A,BELLS FLATS ALASKA SUBDIVISION A SURPLUS TO BOROUGH NEED, AND AUTHORIZING THE BOROUGH MANAGER TO NEGOTIATE DIRECTLY WITH THE PETITIONERS FOR A DISPOSAL OF BOROUGH LAND BY LEASE FOR FAIR MARKET VALUE WHEREAS, KIB Code 18.20.120 allows the Borough Assembly to authorize the Borough Manager to negotiate directly with parties requesting a disposal of interest in Borough land; and WHEREAS, KIB Code 18.20.060 allows citizens to apply for a disposal of interest in Borough land; and WHEREAS, KIB Code 18.20.090 allows citizens to bid for disposal of Borough land subject to a development plan; and WHEREAS, it is in Kodiak's best interests for its Borough and City governments to be well informed regarding the potential impacts of State and Federal fishery management actions on the Kodiak community and to have an opportunity to effectively comment on such actions before they are taken; and WHEREAS, the Planning and Zoning commission, after holding a public hearing on the request, determined by resolution that Tracts B1, B2, B3, and B4 -A are surplus to borough need and recommended a disposal by lease for fair market value subject to certain stipulations that are recommended that the Assembly include in the proposed lease agreement to meet certain planning and community objectives; NOW, THEREFORE, BE IT RESOLVED, THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Section 1: That an 84.38 acre portion of borough land described as Tracts B1, B2, B3 and B4 -A, Bells Flats Alaska Subdivision are hereby declared surplus to the borough's need and authorized for disposal to the petitioner Brechan Enterprises, Inc., by lease for full and true market value, subject to the stipulations enumerated in Section 3 below which relate to the stated purpose of the disposal by lease for the purpose of resource extraction. Section 2: The Assembly, in accordance with KIBC Title 18, hereby authorizes the Borough Manager to negotiate with the petitioner, Brechan Enterprises, Inc., subject to the stipulations ...t in Section ,) b e l ow and o relevant provisions KIBC Title 1 A contained in Section J UCIUW dllU other ICICVdIII F.JIOVISIUIIS of r\I�l.i I IIIC 10. Section 3: The Assembly hereby affirms and restates the stipulations that were recommended by the Planning & Zoning Commission in its recommendation to the Assembly: 1. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation of the lease area at the time resource extraction activities are to be concluded. The Kodiak Island Borough, Alaska Resolution No. FY2007 -39 Page 1 of 2 process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 2. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 3. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through lease negotiation. 4. A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease. 5. The lease shall be for a period of five (5) years with two three (3) year renewals at the discretion of the Assembly. 6. The Assembly may permit a "temporary lease" of the lease area, under the provisions of the existing lease agreement, for a period not to exceed six (6) months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 7. Hours of operation (per Brechan Enterprises, Inc. letter March 1, 2007) shall be 7 a.m. to 7 p.m., Monday through Saturday, with no work on Sundays. 8. The buffer zones, laid out in the Brechan Enterprises, Inc. letter dated March 1, 2007, shall be maintained and kept in a topography that blends smoothly into the surrounding area. 9. All prudent efforts shall be used to minimize the noise level during operations. ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2007 Nova M. Javier, CMC, Borough Clerk KODIAK ISLAND BOROUGH Jerome M. Selby, Borough Mayor Kodiak Island Borough, Alaska Resolution No. FY2007 -38 Page 2 of 2 April 18, 2007 • 1 • • b y� CONDITIONS OF APPROVAL 1. Prior to final plat approval, prepare a drainage plan for review and approval by the City of Kodiak Building Department and obtain a new drainage /grading permit if required. FINDINGS OF FACT 1. Subject to conditions of approval, this plat meets the minimum standards of survey accuracy and proper preparation of plats required in Title 16 of the Borough Code. 2. This plat meets all the requirements of Title 17 of the Borough Code. 3. This plat provides a subdivision of land that is consistent with adopted Borough plans for this area. The question was called, and it CARRIED 6 -0. COMMISSIONER CARVER MOVED TO GRANT preliminary approval for the vacation of a 20 foot wide electrical utility easement per KIBC 16.60, to be replaced with a new 20 foot wide utility easement to coincide with the new Lot line configuration granted preliminary approval for Case S07 -012, subject to the following conditions of approval, and to adopt the findings contained in the staff report dated April 11, 2007 as "Findings of Fact" for this case. The motion was SECONDED by COMMISSIONER JANZ. Regular session closed: Public hearing opened: Public hearing closed: Regular session opened: CONDITIONS OF APPROVAL 1. Prior to final plat approval the plat shall be submitted to the Kodiak Island Borough Assembly and the City of Kodiak Council for approval of the easement vacation. FINDINGS OF FACT 1. The easement to be vacated will be replaced by a comparable utility easement. 2. Kodiak Electric Association was the only utility that responded to the vacation request and KEA indicated No Objection to the requested vacation. The question was called, and it CARRIED 6 -0. B) Case 07 - 021. Request a Title 18 Land Disposal, according to KIBC 18.20, 1840, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 16.40, and a request for material sale per KIBC 18.60.) Dvorak reported the request involves 4 Tracts of land 80 _ request __ . ... . ........ 4 Tracts �„�„ ,,, .u...., approximately a� acres for disposal. These parcels have previously been disposed for a 25 year period that is due to expire June 30, 2007. That disposal was executed by lease, and was for 5 years and was renewed or extended in 5 year increments. Originally, the leases were to - 2 different companies that eventually merged1ogeTer into one entity. The petitioners submitted information indicating their desire to request a new disposal by lease. They have met with staff and discussed the Womens Bay Comp Plan, which is P & Z Commission Meeting Minutes Page 4 of 8 what staff refers to when looking at these land disposal requests. Staff hasn't found any indicators that the Borough has any use for this property for municipal purposes. There is indication that eventually these properties will be disposed of for other purposes at such time as the resource extraction activity is either terminated or abandoned. From staff's perspective most of the concerns have been mentioned, if not addressed in the staff report. Staff did recommend a disposal and a number of stipulations which would address concerns that have been raised in the process. In addition to the material staff provided, the petitioners have provided a survey they prepared last fall showing the existing conditions basically at the close of the last construction season. COMMISSIONER CARVER also provided an alternate recommendation for a partial disposal. Staff doesn't think a partial disposal would be the best recommendation. In addition, there was a hydrological analysis provided in the packet. COMMISSIONER CARVER also provided a partial reclamation plan, an extraction analysis, and a quantity analysis of material. Staff hasn't had a chance to look at this. Dvorak stated that COMMISSIONER WATKINS has provided a substitute resolution with alternate stipulations, and copies have been provided to the public and commissioners. The commission had a discussion. COMMISSIONER WATKINS MOVED TO ADOPT the following resolution containing a recommendation to the Borough Assembly regarding Land Disposal reviewed by the Commission Case 07 -021. A resolution of the Kodiak Borough Planning & Zoning Commission, recommending a disposal by lease for fair market value to Brechan Enterprises Borough land known as Tracts B -1, B -2, B- 3 for the purposes of gravel extraction and Tract B -4A for the purposes of maintaining the by- pass stream and remediation of Tract B -4A. Now therefore, be it resolved by the Kodiak Island Borough Planning &Zoning Commission that: Section 1: The KIB Planning & Zoning Commission, in accordance with Title 18 of the KIB code recommends the approval of a lease disposal by the KIB Assembly, for fair market value of approximately 84.4 acres comprising of Tracts B -1, B -2, B -3, and BO4A Bells Flats Subdivision subject to certain stipulations. Section 2: Stipulations 1. A reclamation plan, subject to the approval of the P &Z Commission and the Borough Assembly, be developed prior to leasing these tracts and that remediation of Tract B -4A begin in the first 6 months of the lease, and be completed in the first year of the lease and the remaining Tracts be remediate prior to the end of the lease period. Reclamation shall take place as areas are no longer used for active extraction. 2. The negotiated lease be brought before the P &Z Commission prior to its final approval by the Assembly. 3. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations af fecting - he extractlorruse- -ant he potential- impact -0f-thlt-use en su rrnmdina habit and residential areas. b April 18, 2007 cc44- P & Z Commission Meeting Minutes Page 5 of 8 4. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a Maximum extraction depth subject to Assembly approval through lease negotiation process. 5. The lessee shall develop a hydrologic management plan for the site within 8 months of lease start. 6. The lease shall be for a period of 3 years with an option to renew at the discretion of the Assembly, not the lessee, for one additional 3 year lease. 7. The Assembly may permit "early right of entry" into the lease area under the provisions of the existing lease agreement, for a period not to exceed 3 months from the normal expiration of that agreement in order to allow lease negotiations to take place. If no lease agreement is reached by the end of this period extraction operations will cease, the demobilization requirements of the existing lease will be in affect. 8. As Tract BO4A has a direct impact on the local residential water table is is not surplus in the strict sense of the word and access shall be for remediation and bypass stream maintenance. 9. Hours of operation (per Brechan Enterprises letter dated March 1, 2007) shall be 7 am to 7 pm, Monday through Saturday, with no work on Sundays. 10. The buffer zones laid out in the Brechan letter dated March 1, 2007 shall be maintained and kept in a topography that blends smoothly into the surrounding area. 11. All prudent efforts shall be used to minimize the noise level during operations including the relocation of the crusher operations to the farthest side of Tract B -1. Section 3 Findings 1. The proposed lease recommendation, subject to the stipulations, gives due deference to the 2007 Womens Bay Comprehensive Plan and the reasonable concerns expressed by the Womens Bay residents through the public hearing process. 2. The need for continued hydrologic management and reclamation of the site favors the continued lease of the B Tracts to the party most responsible for the current disposition of the site, Brechan Enterprises. 3. The site requested for review has previously been determined to be surplus to the borough's needs. Future designation of the site in the 2007 Womens Bay Comprehensive Plan is intended to be for recreational use or residential development. ADOPTED BY THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION, THIS EITHTEENTH DAY OF APRIL, 2007. The motion was SECONDED by COMMISSIONER JANZ. Regular session closed: Public hearing opened: Mike Martin spoke opposing P &Z's motion. Nick Troxell spoke in favor of the request. April 18, 2007 Ct4 P & Z Commission Meeting Minutes Page 6 of 8 Sandra Perry asked if any of the commissioners seen this resolution before tonight, have they had a chance to study or look at it, and who prepared it? COMMISSIONER WATKINS stated no one else has seen it before tonight, and he was the one who wrote it. Sulua Stager spoke opposing the request and would rather have a park. John Sessom from Brechan is not happy with the commission. Chris Lynch is opposed to the P &Z resolution. John Miller spoke opposing the P &Z resolution. Howard Weston attested to high quality Brechan material. Don Lawhead spoke opposing the P &Z motion. Judy Kidder spoke in favor of the request. Bob Hales supports the request. Dave Froehlich spoke in support of the request. George Kontra spoke in support of the request. Rusty Pruitt spoke in support of the request. Mike Milligan spoke in support of the request. Jim Towk spoke in support of the request. Kevin Arndt phoned in to state this pit should be utilized to its fullest which could possibly be 12 more years. Tim Booch spoke in support of the request, but stated we need a clear reclamation plan. He also commended COMMISSIONER WATKINS and the P &Z. Lorne White spoke in support of the request. Joe D'Elia stated the Borough should hire a consultant to do a hydrology study. He would also like the Borough to fund the service district to or have Brechan apply calcium chloride or water to the road surface during dry spells to control the dust. Lisa Booch stated we need a reclamation plan that they will talk to us about and need to work together. Don Mather spoke in support of the request. Tess Dietrich is confused about the whole process. CHAIR KING called a 10 minutes recess. CHAIR KING called the meeting to order. Marie Rice stated a hydrology study is needed. Dave Heauman spoke in favor of the lease, but a hydrology study and a good reclamation plan is needed. April 18, 2007 • P & Z Commission Meeting Minutes Page 7 of 8 ATTEST By: Sheila Smith, Secretary Community Development Department DATE APPROVED: May 16, 2007 April 18, 2007 Josh (inaudible) feels we need to stick to staff's motion. Public hearing closed: Regular session opened: A discussion between Commissioners. CHAIR KING called a 5 minute recess. CHAIR KING called the meeting to order. COMMISSIONER CARVER MOVED TO TABLE this present motion until a special meeting on May 2 " COMMISSIONER KERSCH SECONED the motion. The question was called, and it FAILED 6 -0. COMMISSIONER WATKINS MOVED TO CONTINUE this meeting on May 2, 2007 at 7:30 p.m. in the Assembly Chambers. COMMISSIONER JANZ SECONDED the motion, and it CARRIED 6 -0. CHAIR KING ADJOURNED the meeting at 10:05 p.m. CHAIR KING re- opened the meeting at 10:10 p.m. COMMISSIONER WATKINS MOVED TO AMEND the motion for the continuation of the meeting to change the date and time to May 7 at 6:00 p.m. in the KIB Assembly Chambers. COMMISSIONER CARVER SECONDED the motion, and it CARRIED 6 -0. ADJOURNMENT COMMISSIONER CARVER MOVED TO ADJOURN. The motion was SECONDED by COMMISSIONER WATKINS, and it CARRIED by unanimous voice vote. CHAIR KING ADJOURNED the regular meeting at 10:12 p.m. KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION By: David King, Chair P & Z Commission Meeting Minutes Page 8 of 8 Apr 18 07 09:08a To: Planning & Zoning From: Andy Finke 522 Leta St. Kodiak, AK And e. 4 1 1 Finke 907487.5 p.1 In regards to the issue of the Bells Flats gravel pits. I feel that until the useable gravel is removed and an alternate site is developed that the land use stays the same. I currently own a home about 1 800 feet from the gravel pits. Other than once about 5 years ago when there was a silt issue I have no complaints with the location of the gravel pits. I have not seen the silt problem again so I guess the problem was corrected. I think that we should start to think about the land use after the gravel is exhausted. I think it is out of the way for a park. But it would make a good fishing wildlife habitat area. Also to the best of my knowledge the royalties from the gravel is a large source of the road service district budget. I believe that keeping a source of income is much better than raising my property taxes to pay for services. I can be contacted at 487 -2885 or 539 -1957 if you have any questions for me. Thank you, Andy Finke Y I/1 a b - - -- Original Message From: Len Schwarz [ mailto: len _schwarz @fishgame.state.ak.us] Sent: Monday, April 30, 2007 1:16 PM To: Gary Carver Cc: Donn A Tracy; Duane Dvorak; Ed Weiss Subject: Bells Flats Gravel Ponds and Fish habitat. Several possibilities for fisheries enhancement come to mind. • vi s Dear Gary, thanks for dropping by last week to talk about the Bells Flats gravel ponds and their potential to provide for fish habitat and production. Donn and I went out and visited the gravel ponds on April 25. 1) The department has programs in place which allows us to stock landlocked ponds and lakes on the road system with rainbow trout and coho. We currently stock over 20 lakes. The main criteria for stocking are that anglers can access these lakes and they can produce catchable fish. 2) We also stock coho smolt, which are intended to migrate to sea and return as adults. Again, access for anglers to fish for the returning adults is a prime criterion for determining if stocking can occur. The existing gravel ponds have some potential to provide rearing habitat for coho fingerlings, or act as an imprinting area for presmolt. A permit from the department to enhance an anadramous return of coho to Russian River would also be carefully reviewed by geneticists, pathologists, and fisheries managers to ensure that existing returns and fisheries were not adversely impacted or complicated. In the case of the Russian River, anadramous enhancement could be considered, and not denied out of hand, because the genetic integrity of the Russian River coho has already been compromised by past releases of coho from stocks of other origin before stringent genetic criteria were established for stocking projects. 3) The natural springs which are occurring between the Russian River and the ponds are an attractive site to install and operate a hatchery raceway. Fish (king, coho, or rainbow /steelhead) raised in the raceway could be released along the Kodiak Road system, as well as in Russian Creek. River channels in the Russian River drainage are dynamic and constantly changing in response to floods and other natural conditions. Human development can also influence the physical character of the water course. The potential listed above address the conditions as they now exist and do not consider other possible future developments, such as the Russian River entering and leaving the gravel ponds We understand that the Kodiak Island Borough leases these lands for gravel extraction and is currently considering the specifics of a new lease. If at the end of their process, the Borough identifies a need or desire to develop fishery enhancement opportunities or provide for fish habitat, please contact us and we will assist you as our expertise allows. Designing the contours and depth profiles of ponds for fish production, or engineering raceway facilities, goes beyond the expertise of the Kodiak area office. However, I am confident that headquarters staff within the Department will be able - t u some - - - level of assistance local staff can help with the process for identifying existing water bodies for stocking. Hopefully, this information will be of assistance at your May 7th meeting, I do not plan to attend as I don't think I can provide any more information than I have above. Len Schwarz the assembly Section 2: Stipulations Now therefore, be it resolved by the KIB P &Z commission that: • ub m +#reel to y Caren+ 1,Oa tpetore mac + A resolution of the Kodiak Borough P &Z commission, recommending a disposal by lease for fair market on i4_ value to Brechan Enterprises Borough land known as TractsB -1, B -2, B -3 for the purposes of gravel extraction and tract B-4a for the purposes of maintaining the by -pass stream and remediation of Tract B -4a. Section 1: The KIB P &Z commission, in accordance with title 18 of the KIB code recommends the approval of a lease disposal by the KIB Assembly, for fair market value of approximately 84.4 acres comprising of Tracts B -1 B -2 B -3 and B-4a Bells Flats Subdivision subject to certain stipulations 1)A reclamation plan, subject to the approval of the P &Z commission and the Borough Assembly , be developed prior to leasing theses tracts and that remediation of tract B-4a begin in the first 6 months of the lease, and be completed in the first year of the lease and the remaining tracts be remediate prior to the end of the lease period. Reclamation shall take place as areas are no longer used for active extraction. 2)The negotiated lease be brought before the P &Z commission prior to its fmal approval by 3) The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 4) The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a Maximum extraction depth subject to Assembly approval through lease negotiation process lease start. 5) The lessee shall develop a hydrologic management plan for the site with in 8 months of 6) The lease shall be for a period of 3(three) years with an option to renew at the discretion of the Assembly , not the lessee, for 1 (one)additional three(3) year lease. 7) The Assembly may permit "early right of entry" into the lease area under the provisions of the existing lease agreement , for a period not to exceed 3 (three) months from the normal expiration of that agreement in order to allow lease negotiations to take place. If no lease agreement is reached by the end of this period extraction operations will cease, the demobilization requirements of the existing lease will be in affect 8) As tract B -4a has a direct impact on the local residential water table it is not surplus in the strict sense of the word and access shall be for remediation and by pass stream maintenance 9)Hours of operation (per Brechan Ent letter March 1, 2007)shall be lam to 7pm Monday through Saturday , with no work on Sundays. 10) The buffer zones laid out in the Brechan letter dated March 1 2007, shall be maintained . and kept in a topography that blends smoothly into the surrounding area. '� Vi • •• ,77 a ' Continued on next page with item 11 _ `� '!t ►r • , f APR 1 8 2007 Section 3 Findings- • 11) All prudent efforts shall be used to minimize the noise level during operations including the relocation of the crusher operations to the farthest side of tract B -1 1) The proposed lease recommendation, subject to the stipulations, gives due deference to the 2007 Womans Bay Comprehensive Plan and the reasonable concerns expressed by the Womans Bay residents through the public hearing process. 2) The need for continued hydrologic management and reclamation of the site favors the continued lease of the B tracts to the party most responsible for the current disposition of the site, Brechan Enterprises 3) the site requested for review has previously been determined to be surplus to the borough's needs. Future designation of the site in the 2007 Womans Bay Comp. Plan is intended to be for recreational use or residential development ADOPTED BY THE KODIAK ISLAND BOROUHG PLANNING AND ZONING COMMISSION, THIS EIGHTEENTH DAY OF APRIL, 2007 Current Location Z Case # 07 -021 Mike Martin A Title 18 Land is,'eeording to KIBC 18.20, 18.40, and 18.60, to consider :a request to tease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both .a request to lease the land, per KIBC 18.40, and a request for material sale per KIBC 18.60.) Feet 0 5001,000 2,000 3,000 1 j 1 1 _ Legend Subject Parcel Map prepared for the purpose of showing the Generaltocctionnfthel (odtak.Uman area_,Iune,2005— Alaska Highway System, GPS centerline data, National Highway System, Highways, Roads, Streets., Alaska D.O.T. Sept. 2002 Contour information:USGS Digital Elevation Model Kodiak, Alaska. 50 foot intervals, Scale is 1:63,360 Created in ArcGIS 9, NAD 27, State Plane 5 Parcel information is taken from selected fields in the current computerized property records in the Assessing Dept. This data has not been reconciled with data contained in manual files which may be more up-to -date. Kodiak Island Borough Community Development Department. ant Zoning Z Case # 07-021 d ike Martin A Title 18 Land Dispo at according to KIBC 18.20, 1840, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 18.40, and a request for material sale per KIBC 18.60.) C3 Subject Parcel = Business 1 DStnal Legend Two Family Residential Multi Family Residential Conservation Retail Business I - Rural - Re lderttl Light Industrial Rural Residential 1 Natural Use Rural Residential 2 Public Use V A Split -Lot Zone Single Family Residential Feet 0 5001,000 2,000 3,000 4,000 5,000 1 1 1 1 1 1 1 1 1 o■u.u.•o w.eue1.4 ALASKA .Map preparad for _the _ _purpose _ oLshowing the Zoning of the Kodiak Urban area. June, 2005. Alaska Highway System, GPS centerline data, National Highway System, Highways, Roads, Streets., Alaska O.O.T. Sept. 2002 Contour information:USGS Digital Elevation Model Kodiak, Alaska. 50 foot intervals, Scale is 1:63,360 Created in ArcGIS 9, NAD 27, State Plane 5 Parcel information is taken from selected fields in the current computerized property records in the Assessing Dept. This data has not been reconciled with data contained in manual files which may be more up-to -date. Kodiak Island Borough Community Development Department. DATE: April 11, 2007 TO: Planning and Zoning Commission FROM: Community Development Department STAFF: Duane Dvorak, Associate Planner SUBJECT: Information for the April 18, 2007, Regular Meeting CASE: 07 -021 APPLICANT: Brechan Enterprises, Inc. AGENT: Mike Martin REQUEST: A Title 18 Land Disposal, according to KIBC 18.20, 1840, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 18.40, and a request for material sale per KIBC 18.60.) LOCATION: Bells Flats Alaska Subdivision, Tracts B1 — B4A. 12247, 125361, 12583 Middle Bay Drive, and 12027 Bells Flats Road. ZONING: I — Industrial. Twenty -seven (27) public hearing notices were distributed on March 19, 2007. Date of site visit: April 6, 2007 Zoning History: The 1968 Comprehensive Plan addresses this area as, "Formerly part of the Naval Station Reserve, Bells Flats is located 4 miles southwest of the Naval Base. It comprises a broad valley at the head of Women's Bay containing approximately 1,200 acres of land well suited to residential and industrial uses. Approximately 12 families are now living in the area ". Ordinance 1969 -30 zoned Bells Flats Tracts A & B as I – Industrial. 2. Location: Approximately eleven (11) miles southwest of the City of Kodiak. 3 Physical: The parcels subject to this request are located in a historical river rhannol V1. 4. Legal: Bells Flats Tr B -1 of Tr B Bells Flats Tr 6-2 of Tr B — Bells Flats Tr B -3 of Tr B Case 07- 021 /Staff Report • Public Hearing Item VI -B Kodiak Island Borough Planning and Zoning Commission MEMORANDUM Bells Flats Tr B -4A of Tr B 5. Lot Size: Bells Flats Tr B -1 of Tr B 19.95 acres Bells Flats Tr B -2 of Tr B 19.72 acres Page 1 of 12 P & Z: April 18, 2007 Public Hearing Item VI -B Bells Flats Tr B -3 of Tr B Bells Flats Tr B -4A of Tr B 6. Existing Land Use: Industrial — Gravel Extraction. 7. Surrounding Land Use and Zoning: Abutting & adjacent lands to the north are zoned RR -1 Rural Residential Zoning District, and the predominate use is single family residential. Abutting & adjacent lands to the east are zoned PL — Public Use & the use is vacant. Abutting & adjacent lands to the south is zoned C - Conservation Zoning District, and the use is vacant. Abutting & adjacent lands to the west are zoned RR -1 Rural Residential Zoning District, and the predominate use is single family residential. APPLICABLE KIB CODE & POLICY PROVISIONS The following sections of the Kodiak Island Borough Code and the Kodiak Island Borough Coastal Management Program are applicable to this request: 18.20.030 Review by planning commission -- Assembly approval. Except for disposal required by law: A. Each disposal of borough and is subject to review by the planning commission before submission to the assembly. The commission by resolution shall make a recommendation to the assembly regarding the proposed land disposal. B. Borough land disposal that are not subject to approval by ordinance are subject to approval by assembly resolution. The resolution shall specify the terms and conditions upon which the disposal will be offered. 18.20.060 Applications. A. Application for a disposal of borough land under this title shall be filed with the Community Development Department. Only applications completed in full and accompanied by a non- refundable filing fee as set forth in the current fiscal year schedule of fees and charges will be accepted. B. The filing of an application shall not in any way vest in the applicant any right to the borough land or to the use thereof applied for. 18.20.170 Definitions. As used in this chapter: A. "Borough land" means any real property or interest therein owned by the Kodiak Island Borough; C. "Disposal" means any transfer of real property authorized under this title; and D. "Real property" means any interest in real property under the law of the state of Alaska, including but not limited to a fee, easement, or leasehold interest, and a revocable license or permit to use real property. 18.40.020 Negotiated leases. 20.07 acres 24.64 acres A. The assembly may approve by resolution the issuance of a negotiated lease for a period not to exceed five (5) years if the annual rental value of the property is five hundred (500) dollars or less and no competitive interest for the property is apparent. Case 07- 021 /Staff Report Page 2 of 12 P & Z: April 18, 2007 Case 07- 021 /Staff Report • Public Hearing Item VI -B 18.40.030 Term of lease. Leases may be issued for a period not to exceed fifty -five (55) years. The term of any given lease shall depend upon the desirability of the proposed use, the amount of investment in improvements proposed and made, and the nature of the proposed improvement with respect to durability and time required to amortize the proposed amendment. 18.40.040 Terms and conditions of leases. The provisions of this chapter and all other applicable provisions of this code are binding as terms and conditions of any lease of borough land. These terms and conditions, if not fully set forth in the lease, are incorporated by reference as though fully set out in full in the lease. The lease shall contain such additional terms, conditions, and restrictions as the borough determines to be in its best interest. 18.40.050 Minimum acceptable annual rental. A. Annual minimum rentals shall be computed at the prevailing interest rate used in the conventional mortgage market in Kodiak, based on the appraised fair market value for the land and /or improvement rights being leased. This minimum shall be the lowest acceptable bid in the event of an auction, lease by sealed bid, or negotiated lease. B. No land shall be leased for less than the approved, appraised, annual rental except as provided in section 18. 20.020 of this title. Chapter 18.60 Material Sales 18.60.010 Materials available. All materials to which the borough holds title may be sold pursuant to contract approved by the assembly. The manager shall recommend to the assembly a form of contract, including limitations, conditions, and terms of the sale. "Materials" means nonrenewable, natural, extractive resources including, but not limited to, gravel, sand, soil, rock and peat. "Materials" shall be considered real property for the purposes of this title. 18.60.020 Additional application information. A. An application for a material sale shall include, in addition to requirements in section 18.20.040 of this title, a map showing or containing the following: 1. the location of the material site area oriented to topographic features or survey markers; 2. the location of adjacent property boundaries, roads and watercourses; 3. names of adjoining property owners; and 4. a vicinity map of appropriate scale to properly locate the application area. B. The information required in subsection A of this section is waived when applying for material from a borough- designated material source. 18.60.040 Volume determination. Measurements to determine the volume of material sold may be by cross sectioning, weighing, or other method considered to give accountability of the materials sold. The purchaser shall bear the cost of volume determination for all material sales. The borough, on its own motion, may make additional volume measurements to verify the accuracy reported. 18.60.050 Method of payment. A. A minimum of one thousand (1,000) dollars shall be paid to the borough when exec a negotiated material contract. No refund will be made if the volume removed is not equivalent to the value of the initial payment. The balance of the negotiated contract price is due as provided in the sale contract. B. Competitive bid offerings shall require the following payment schedule: 1. an initial payment of one thousand (1,000) dollars or ten (10) percent of the total contract value, whichever is more, shall be deposited at the time of the bid award; Page 3 of 12 P & Z: April 18, 2007 Case 07-021/Staff Report Public Hearing Item VI -B 2. the balance of the contract price shall be due as provided in the material sales contract; 3. no refund of the initial payment will be made if no material or the equivalent valued material is not removed; and 4. up to two thousand (2,000) dollars of the initial payment may be retained by the borough as payment deposit throughout the life of the contract to be applied to the final payment due for materials not earlier paid for. 18.60.060 Appraisal. A. The assembly shall establish, at annual intervals, a minimum unit price for material to be sold. B. All new and existing contracts for sale of material shall be adjusted automatically to reflect the price established under subsection A of this section; provided, that a contract price established by competitive bidding, if higher than the general price established by the assembly, shall not be affected. 18.60.070 Performance bond. The manager may require the purchaser to provide a performance bond in an amount he determines necessary to protect the borough's interest and ensure satisfactory compliance of the contract stipulations. A purchaser may use a state -wide bond to meet the performance bond requirements. Page 4 of 12 P & Z: April 18, 2007 • Public Hearing Item VI -B COASTAL MANAGEMENT PROGRAM APPLICABLE POLICIES 5.3.1 GENERAL POLICIES Land and Water Activities 3. Compatibility Activities on and uses of coastal lands shall be compatible with adjacent land use to the greatest extent feasible. Geophysical Hazards 1. Utilization Consistency: Yes. The Kodiak Island Borough, as land owner, has control over the terms and conditions of this disposal by lease. The lease terms and conditions can address many issues of compatibility that are not addressable through the I- Industrial zoning standards. The utilization of potentially hazardous lands shall be safe and sensible. Developments shall be sited to minimize the risk to life and property to the extent feasible and prudent. Consistency: Not Applicable. This site is not located in a known hazardous area. 3. Coastal / Seiche flooding Development within thirty (30) feet elevation above mean sea level (100 year recurrence or 1 percent probability event) shall be sited, designed, and constructed to mitigate against the potential hazard of coastal / seiche flooding. Consistency: Not Applicable. This site is not located within the 30 foot elevation above mean sea level. 8. Riverine Flooding Development shall not take place to the extent feasible and prudent with the 10 -year recurrence (or 10 percent probability) floodplain in order to protect life and property and to avoid construction of unnecessary flood control structures at public expense. Development considered necessary within the 1 -year (one percent probability) floodplain shall be, to the extent feasible and prudent, subject to proper siting, design, and construction measures to minimize the potential flooding hazard. Consistency: Unknown. It does not appear that the site is within the 10 -year floodplain. Nevertheless, it seems likely that the material being extracted was deposited in this location by the adjoining river drainage at some point in the distant past. Resource Enhancement and Protection 1. Enhancement The_maintenance- and_ enhancem ent_a_fistvwildlif and—vggetative- resources shall be a priority of the Kodiak Island Borough. Case 07-021/Staff Report Page 5 of 12 P & Z: April 18, 2007 Case 07-021/Staff Report Public Hearing Item VI -B Consistency: Yes. The development and utilization of the site is expected to conform to applicable fish and game regulations promulgated by the Alaska Department of Fish & Game. 2. Habitat Protection Management of sensitive areas such as estuaries, wetlands, tideflats, beaches, rivers, streams, lake systems, and high energy coasts shall be done in accordance with ACMP Standard 6 AAC 80.130 (Habitats). Federal and state regulations should guide development in anadromous fish streams, in the vicinity of bald eagle nests, and other coastal habitat areas. Consistency: Yes. Although development will not be occurring within an anadromous water body, reasonable efforts should be required to protect the adjoining river habitat. 3. Siting and Design. Development should be designed, located and built to preserve or wisely use natural features. Consistency: Yes. Minimal design is required for a resource extraction activity. There is a need for a clear and concise reclamation plan however, to ensure that the remaining buffer areas are returned to a productive state at the conclusion of resource extraction activities. 4. Natural Processes Estuaries, tideflats, wetlands and lagoons shall be managed so as to assure water flow, natural circulation patterns, and adequate nutrient and oxygen levels. Dredging and filling is not permitted in these areas unless approved by the Community Development Department, U.S. Army Corps of Engineers, and other appropriate state and federal agencies. Consistency: Yes. It appears that efforts are being made to ensure that natural water migration and circulation patterns are preserved while attempting to isolate the turbidity caused by the disturbance of the pond that has been created by past excavation efforts. Prior to refilling any portion of the excavation a wetland jurisdiction review should be conducted by the U.S. Army Corp of Engineers to ensure that the re- filling of man -made wetlands is allowable under the COE jurisdiction. Page 6 of 12 P & Z: April 18, 2007 Case 07- 021 /Staff Report STAFF COMMENTS IP Public Hearing Item VI -B Brechan Enterprises has requested to re -lease Tracts B1 through B -4A (hereinafter "B Tracts ") for the purposes of continued resource extraction. In the letter dated September 20, 2006, which included a ground survey and material analysis, Brechan Enterprises has requested to lease the B Tracts for an additional 15 years which would be structured in the form of a five (5) year lease with two five (5) year extensions. According to the letter, this would allow for continued resource extraction until June 2022 or until the resource is depleted. Although the letter requesting disposal was submitted to the KIB in September 2006, it was not recognized by staff as a disposal request until February 2007. At that time a meeting between borough staff and representatives from Brechan Enterprises was scheduled to discuss the request and to get a better idea of what the request entails. Brechan Enterprises was briefed by staff on the applicable provisions of the draft Womens Bay Comprehensive Plan Update and in response they submitted an additional letter dated March 1, 2007 to accompany the application and fee for this request. The letter addresses, among other things, hours of operation, excessive noise and buffer zones. Based on past review by the KIB Assembly dating back to 1982, it appears that this area is surplus to the borough's need in the sense that the site has been previously disposed by lease for resource extraction purposes. The 2007 Womens Bay Comprehensive Plan recognizes this resource extraction use may need to continue for an indeterminate period until another material source can be identified and made available for use. The plan recommends that further lease of the B Tracts be limited to the minimum time frame necessary to identify and prepare an alternative material site. The plan identifies the future use of the B Tracts for recreational and /or residential development as part of a reclamation plan for the area. It is staffs understanding that a reclamation plan accompanied the original lease, but staff has not been able to locate such a plan that would clearly identify the disposition of the land after all resource extraction activities have been concluded. Alternative gravel sources have been investigated by the Gravel Task Force which was empanelled by the KIB Assembly for that purpose. At this time those investigations of still underway and an alternative material site that meets the requirements of industry and the community has yet to be identified. Title 18 — Real Property Disposal is generally accepted to be the exclusive province of the Borough Assembly. The role of the Planning and Zoning Commission in regard to such matters is defined by two chapters of the code. Authority of the commission to participate in the process is found in KIBC 2.40.030 Powers and duties, which reads, "The commission shall accomplish the following: (H.) - Make investigations regarding any matter related to borough planning ". The specific contribution to the process, which the commission is expected to make, is to advise the Assembly, i.e., "The commission by resolution shall make a recommendation to the assembly regarding the proposed land disposal." (KIBC 18.20.030 above). Because this request is intended to be both a lease of the land and a material sale, this disposal involves the applicable provisions of both KIBC 18.40 with regard to leasing and KIBC 18.60 with regard to material sales. In the past the Assembly preferred to lease the B Tracts as two separate extraction areas in order to ensure that there was competition for material in the community. In its current condition, staff does not believe that there is adequate upland area remaining to support more than one extraction operator. If the Assembly desires to foster competition, it would need to consider whether to make this disposal as a i competitive offering to single operator to _l.. competitive vnci� to a single oF.lel t cl Wl lS! simply to lease the land to the requestor in this case. According to KIBC 18.20.060.B the fact that an application for disposal is filed does not vest any right in the disposal requested. The Assembly is the ultimate authority in determining if a disposal is to occur and, if approved for disposal, how that land disposal might be structured. The only apparent limit on this authority according to KIBC 18.20.050 is a requirement to submit the disposal for approval of borough voters if the value of the property is more than $250,000 and the and is to be disposed of to a single individual, partnership or corporation by means other than outcry auction. The value of the land must be determined by appraisal within 90 days of the proposed disposal date as provided by KIBC 18.20.130. Page 7 of 12 P & Z: April 18, 2007 request. Case 07-021/Staff Report Public Hearing Item VI -B The prospect of having a new lease agreement in place before the existing lease expires on June 30, 2007 seems to be unlikely given the magnitude of the request and changes in the community since the last disposal was approved in 1982. If the Assembly is inclined to approve a new disposal, staff recommends that approval for an "early right of entry" onto the property should be considered as a means to bridge the gap until a new agreement can be approved. While staff is not recommending this as an extension of the existing agreement, it would seem reasonable to bind the "early right of entry" to the existing lease terms for an additional three to six months in order to ensure that a new agreement can be negotiated by the administration and approved by the Assembly for further leasing of the site. Staff believes that the existing agreement may form the basis of a new agreement subject to the usual re- evaluation of lease rates, material royalties and insurance requirements. There are, however, certain aspects of a new lease that staff believes should be considered in the process of negotiating a new lease agreement for the B- Tracts. These suggestions are based on public input from the Womens Bay community during the development of the 2007 Womens Bay Comprehensive Plan which was adopted in March 2007. 1. Provisions offered by Brechan Enterprises in the letter dated March 1, 2007 should be incorporated into the agreement in order to make these conditions binding upon the lease; 2. Options to renew should be worded in such a way that the option to renew is subject to the discretion of the Assembly and not a right to be exercised by the lessee. This will allow the Assembly an opportunity to periodically review compliance with lease provisions and to determine whether other material extraction options are available that would permit phasing out of the B -Tract extraction operations. 3. Requirement for a reclamation plan to indicate the proposed condition of the land at the time resource extraction activities are concluded. In this regard, the process of reclamation should be phased in over time for areas no longer subject to active extraction activities. The 2007 Womens Bay Comprehensive Plan calls for the land to be made available for recreation or residential purposes. From the staff site visit, it appears that much of the original overburden from the B- Tracts has been stockpiled in the large berms located along Middle Bay Drive. It may be prudent to require that this overburden be redistributed on the areas disturbed by extraction activities in order to return the site to some semblance of the natural topography of the remaining uplands prior to extraction. This is not to suggest the remaining buffer areas should be graded flat, but that the natural undulations of surrounding areas can be approximated if desirable. 4. Require the lessee to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with all existing regulations affecting the extraction use and the potential impact on the surrounding habitat and residential areas. 5. Review the minimum extraction depth of the existing agreement and perhaps consider a maximum extraction depth for the site. 6. Development of a hydrological management plan for the site. Staff is in receipt of an undated hydrological study submitted by a member of the commission along with a re for certain leasing conditions. F- _.,... th recommendation �� ivi iuu � ivy certain i icaa l lJol IU IIIVI W. rl VIII LI IC l:or rCSpUIlUeflGe and the map it is unclear who the preparation of the map may be attributed to. Nevertheless, the information presented on the map is beyond the qualifications of Community Development Department staff to adequately review. Staff has submitted the map information to the Alaska Department of Natural Resources for review, however it is unlikely that a response tt -- be receives on this issue prior to the Commission's consideration of this Page 8 of 12 P & Z: April 18, 2007 • • Public Hearing Item VI -B One of the recommendations accompanying the map is to reduce the proposed lease area by eliminating Tract B -4A and half of Tract B -3 along the approximate line of the existing pond edge. Staff did discuss this prospect with the petitioners and they indicated an ongoing need to have access to this site in order to use the pond on Tracts B -3 and B -4A as part of their water quality management plan. In addition, they have developed water bypass facilities that are routed through these tracts which are necessary to isolate the ponds from interacting with the adjoining anadromous stream. Staff would further note that by dropping Tract B -4A and a portion of B -3 from the proposed lease area may forestall any further reclamation of those areas when the extraction use is concluded. Staff would suggest that phasing out the B Tract leases should include more than simply reducing the leasehold area of active extraction activities and that areas no longer needed for active extraction should be reclaimed within the context of proposed lease disposal. If these areas are not under lease then there will be no way in order to require reclamation at some later date. With regard to the issues of hydrological management and site reclamation staff notes that potentially leasing the site to another operator, in the context of a competitive disposal, raises certain concerns. Another operator is unlikely to want to be made responsible for prior disturbances in terms of hydrological management and final reclamation of the site. In this regard, staff believes that continued "sole- source" leasing of the site to Brechan Enterprises, which has previously assumed the leasehold interest of other predecessors in interest such as Aleutian Materials, is the most responsible party to have operating the site in terms of continued concern about hydrological management of the site and eventual reclamation. Staff has been made aware of four or five shallow water wells that went dry for a short period in this past month. There has been speculation that the unseasonably cold winter and lack of precipitation contributed to the problem. There has also been speculation that the prior extraction activities located across Bells Flats Road may also be a factor in this observed phenomenon. Something that the Commission and Assembly may want to consider in this regard is to reserve a portion of Tract B -4A for a potential community well to serve these dwellings should they desire to collectively develop a deeper community water well capable of supplying the water needs of affected households. This area could be reserved for future recreational or open space use that would not interfere with the water well reservation. Case 07-021/Staff Report Page 9 of 12 P & Z: April 18, 2007 RECOMMENDATION Staff believes the current request meets the standards for a land disposal by lease. APPROPRIATE MOTION Should the commission agree with the recommendation of staff, the appropriate motion is: Move to adopt the following resolution containing a recommendation to the Borough Assembly regarding the land disposal reviewed by the Commission in Case 07 — 021. A RESOLUTION OF THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION, RECOMMENDING A DISPOSAL BY LEASE FOR FAIR MARKET VALUE TO BRECHAN ENTERPRISES OF APPROXIMATELY 84.4 ACRES OF BOROUGH LAND DESCRIBED AS TRACTS B -1, B -2, B -3 and B -4A, BELLS FLATS ALASKA SUBDIVISION FOR THE PURPOSE OF RESOURCE EXTRACTION. WHEREAS, Kodiak Island Borough Code (KIBC) 18.20.030 requires each disposal of Borough land to be reviewed by the Planning and Zoning Commission before submission to the Assembly; and, WHEREAS, the Planning and Zoning Commission is required under KIBC 18.20.030 to make a recommendation on the disposal by resolution before the case can be forwarded to the Borough Assembly; and, WHEREAS, the principal purpose of the Commission's recommendation is to determine whether the land is considered to be surplus to the Borough's need; and, WHEREAS, the Planning and Zoning Commission held a public hearing on April 18, 2007, to consider the land disposal request made by Brechan Enterprises, Inc., for a land disposal by lease for fair market value; Case 07- 021 /Staff Report • • Public Hearing Item VI -B Page 10 of 12 P & Z: April 18, 2007 NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION THAT: Section 1: Section 2: Stipulations. Case 07-021/Staff Report • Public Hearing Item VI -B The Kodiak Island Borough Planning and Zoning Commission, in accordance with Title 18 of the Kodiak Island Borough Code, recommends the approval of a lease disposal by the Kodiak Island Borough Assembly of a land for fair market value of approximately a 84.4 acres comprised of Tracts B -1, B -2, B -3 and B -4A, Bells Flats Alaska Subdivision, subject to certain recommended stipulations. 1. Provisions offered by Brechan Enterprises in the letter dated March 1, 2007 shall be incorporated into the agreement in order to make these conditions binding upon the lease; 2. Options to renew shall be worded in such a way that the option to renew is subject to the discretion of the Assembly and not a right to be exercised at the discretion of the lessee. 3. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation of the lease area at the time resource extraction activities are to be concluded. The process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 4. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 5. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through the lease negotiation process. 6. The lessee shall develop a hydrological management plan for the site. 7. The Assembly may permit an "early right of entry" into the lease area, under the provisions of the existing lease agreement, for a period not to exceed six months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 8. The Assembly may designate or reserve an area within the buffer area on Tract B -4A as a community well site if needed by nearby residential users for a future water supply. Page 11 of 12 P & Z: April 18, 2007 Section 3: Findings. 1. The proposed lease recommendation, subject to stipulations, gives due deference to the 2007 Womens Bay Comprehensive Plan and the reasonable concerns expressed by Womens Bay residents through the public hearing process. 2. The need for continued hydrological management and future reclamation of the site favors the continued lease of the B Tracts to the party most responsible for the current disposition of the site, Brechan Enterprises. 3. Conditions of site operation offered by the petitioner addressing hours of operation, noise, buffer areas, and other issues, will be included in the lease agreement in order to ensure they have binding affect. 4. The site requested for review has previously been determined to be surplus to the borough's needs. Future designation of the site in the 2007 Womens Bay Comprehensive Plan is intended to be for recreations use or residential development. ADOPTED BY THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION, THIS EIGHTEENTH DAY OF APRIL, 2007 Case 07-021/Staff Report • Public Hearing Item VI -B Page 12 of 12 P & Z: April 18, 2007 This notice is being sent to you because our records indicate you are a property owner /interested party in the area o the request. If you do not wish to testify verbally, you may provide your comments in the space below, or in a letter to the Community Development Department prior to the meeting. If you would like to fax your comments to us, our fax number is: (907) 486 -9396. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call -in telephone number is 486 -3231. The toll free telephone number is 1- 800 - 478 -5736. One week prior to the regular meeting, on Wednesday, April 11, 2007 a work session will be held at 7:30 p.m. in the Kodiak Island Borough Conference Room ( #121), to review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. If you have any questions about the request or your appeal rights, please feel free to call us at 486 -9363. Your Name: 0 CA,,.. , 0 RC Mailing Address: \ C ( 3 ( V\ 1 0 /' IC Oa Y Your property description: L. co-i & 3 T / L.. Vi c r s ' Comments: I. k / S 0 130 e-1 i ∎ t YI---■'-� t. J f 6 14 J -- VIA-- ( -1Z A c l'>'l e. -) (./ � e i t Pk J 12A b e-e- 1 -e S l 0-e r■ l rA L fki ;A- h^ p 1-e- g- 0 1 v1t�( h t4 P C \ 1 S IL 0 t S CC 1n-t1 1' \-) e. C 11 1-. . -! }� G/ i l T CASE: APPLICANT: AGENT: REQUEST: LOCATION: ZONING: KPDIAK ISLAND BOROAH COMMUNITY DEVELOPMENT DEPARTMENT 07 -021 Brechan Enterprises, Inc. Mike Martin I- Industrial 710 Mill Bay Road, Kodiak, Alaska 99615 Public Hearing Item VI -A PUBLIC HEARING NOTICE A public hearing will be held on Wednesday, April 18, 2007. The meeting will begin at 7:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: 2007 A Title 18 Land Disposal, according to KIBC 18.20, 1840, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 16.40, and a request for material sale per KIBC 18.60.) Bells Flats Alaska Subdivision, Tracts B1 — B4. 12247, 125361, 12583 Middle Bay Drive, and 12027 Bells Flats Road. 4 23/03 2007 01y37 FAX 907 486 1 LOCATION: ZONING: KODIAK ISLAND BOROUGH COMMUNITY DEVELOPMENT DEPARTMENT 710 Mill Bay Road, Kodiak, Alaska 99615 Public Hearing Item VI -A PUBLIC HEARING NOTICE A public hearing will be held on Wednesday, April 18, 2007. The meeting will begin at 7:30 p.m. in the Borough Assembly Chambers, 710 Mill Bay Road, Kodiak, Alaska, before the Kodiak Island Borough Planning and Zoning Commission, to hear comments if any, on the following request: CASE: 07 -021 APPLICANT: 13rechan Enterprises, Inc. AGENT: Mike Martin L_ REQUEST: A Title 18 Land Disposal, according to K.IBC,,18..20,, ,1,840, and 18.60, to consider a request to lease borough land for fiiir`in41.(el.i'.aiuc-'fir the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per .KI.BC 16.40, and a request for material sale per Ki13C 18.60.) Bells Flats Alaska Subdivision, Tracts B1 — B4. 12247, 125361, 12583 Middle Bay Drive, and 12027 Bells Flats Road. I- Industrial This notice is hcing sent to you because our records indicate you are a property owner /interested party in the area of the request. If you do not wish to testify verbally, you may provide your comments in the space below, or in a letter to the Community Development Department prior to the meeting. if you would like to fax your comments to us, our fax number is: (907) 486 -9396. If you would like to testify via telephone, please call in your comments during the appropriate public hearing section of the meeting. The local call -in telephone number is 486 -3231. The toll free telephone number is 1 -800- 478 -5736. OUTSIDE THE LINES One week prior to the regular meeting, on Wednesday, April 11, 2007 a work session will he held at 7:30 p.m. in the Kodiak island Borough Conference Room (/1121), 10 review the packet material for the case. Kodiak Island Borough Code provides you with specific appeal rights if you disagree with the Commission's decision on this request. if you have any questions about the request or your appeal rights, please feel free to call us at 486 -9363. Your Name: Your properly description: LA: a w:-,.c> t OO.I/\ \ \ .0ele— Comments: t r�i ! �'1 t <'d.q : I `1 'v` ; l 1 {�_ tt t ' L :S 3 Yltl 11 t .?t\ 6* ;^ ir'1\soti kAAC( ;'S #vim' ` > Lt 'f - k' 311E rj. h.''11tY➢aWRilattritlMMAi %RINILAININiirlrtA'L OOih Mailing Address: t � • MAR 222007 `a.C. (›t.. t V L F <. t Ai ._. Pe'.eT � _ t JY i;3e 001 IT rouompme Il t Er .... a +d.. ' Applicant Information Brechan Enterprises, Inc. Property owner's name 2705 Mill Bay Rd Property owner's mailing address Kodiak AK 99615 City State Zip ( 90 7 )486 - 3215 ;lsessoms @brechan.co Home phone Work Phone E -mail Addr. Mike Martin Agent's name (If applicable) 2705 Mill Bay Rd. Agent's mailing address Kodiak AK 99615 City Home phone State Zip (907)486 -3215 mrmartin @gci.com Work Phone E -mail Addr. Property Information Bells Flats Tracts B1 —B4 Property ID Number /s Bells Flats Alaska Sub Division B1 —B4 Legal Description Current Zoning: Industrial Applicable Comprehensive Plan: Year of Plan adoption: 2007 Present Use of Property: Operation see attached letter Gravel Extraction Proposed Use of Property: See attached (Note: Use additional sheets, if needed, to provide a complete description of the proposed request.) Applicant Certification I hereby certify as the property owner /authorized agent that this application for Planning and Zoning Commission review is true and complete to the best of my knowledge and that it is submitted in accordance with the requirements of the applicable Kodiak Island Borough Code, which includes a detailed site Man for variance and conditional use requests and which may include optional supporting documentation as indicated below. Additional Narrative /History As -built Survey Photographs Maps Other Property Owner's Signature Date Authorized Agent's Signature Date 1 A development plan for one or more lots on which is shown the existing and proposed conditions of the lot, including topography, vegetation, drainage, flood plains, wetlands, and waterways; landscaping and open spaces; walkways; means of ingress and egress; circulation; utility services; structures and buildings; signs and lighting; berms, buffers, and screening devices; surrounding development; and any other information that reasonably may be required in order that an informed decision can be made by the approving authority. (Source: The New Illustrated Book of Development Definitions, ©1993 by Rutgers University) STAFF USE ONLY Code Section(s) Involved: / r{Q I �( ( 0 I 35 .61/4:7 Variance (KIBC 17.66.020) $250.00 Application rec Staff signature KODIAK ISLAND BOUGH - COMMUNITY DEVEMENT DEPARTMENT 710 Mill Bay Rd., R 05, KODIAK, AK 99615 -6398 (907) 486- - FAX (907) 486 -9396 www.kib.co.kodiak.ak.us L 0/JP Conditional Use Permit (KIBC 17.67.020.B) $250.00 Other (appearance requests, site plan review, etc.) $150.00 Zoning change,from - to (KIBC 17.72.030 and 030.C)* .S t" LrL.s.iL. PAYMENT VERIFICATION r :i_ ^.�fi Pai in Full * *. BRECHAN ENTERPRISES, INC GENERAL CONTRACTORS Kodiak Island Borough Community Development Department Attn: Duane Dvorak, Acting Director 710 Mill Bay Road Kodiak, AK 99615 March 1, 2007 RE: Gravel Contract on tracts B -1 thru B -4A, Bells Flats On behalf of Brechan Enterprises, Inc. we would like to take this opportunity to set forth our suggestions for the extraction of material from the Bells Flat Pit. We would also like to thank you for taking the time to meet with us Monday, February 26, 2007 to discuss possible issues with the upcoming lease renewal. As per our discussion with your staff, there seems to no longer be a need for two entities to occupy the tracts located at Bells Flats, therefore Brechan Enterprises, Inc. will be the sole applicant for the upcoming lease renewal. We feel that that this will simplify the process, and have been granted the authority by Aleutian Materials, Inc. to be the sole applicant. After reviewing the Women's Bay Comprehensive Plan Update - December 2006, we have found several items that we would like to address: 1. Hours of Operation - As in then past we will continue to work on lam to 7pm Monday thru Saturday with no work to be done on Sundays. 2. Excessive Noise - Brechan Enterprises is making every attempt to reduce the amount of noise in the area. We will be utilizing updated equipment and mechanical engineering to minimize the amount of noise in the area. i.e. backup alarms on the loaders, we are inquiring as to ways to refract noise levels. 3. Buffer Zones - Brechan Enterprise will fully comply with the existing buffer zones set forth in exhibit A. As well as addressing these issues that appear in the Comprehensive Plan we are taking it a step further by relocating the crushing operation to the far side of Tract 1 ,this will further reduce the noise encountered by the residence. We have also increased our efficiency at this location cutting our production time by more than half, requiring less time for same amount of product. Thank you for your attention to this matter, and if there is any further assistance that we may provide, please, feel free to contact our office. Thank yz JDZ Sessoms, Controller Brechan Enterprises, Inc. Cc - - dick L. Gifford, Borugh - Manager Bud Cassidy, Engineering and Facilities BRECHAN ENTERPRISES, INC / GENERAL CONTRACTORS 2705 MILL BAY ROAD • KODIAK, ALASKA 9961 5 PHONE: 907.486.3215 • FAX: 907.486.4889 ALASKA BUSINESS #001858 • ALASKA CONTRACTORS #AA441 We Are An Equal Opportunity Employer /00 • • 20 feet 25 feet 50 feet BRECHAN ENTERPRISES, INC. 2705 Mill Bay Road • Kodiak, AK (907) 486 -3215 • Fax: (907) 486 -4889 Alaska Business License #001858 • Alaska Contractors License #AA441 ALEUTIAN MATERIALS INC. Box 223 • Kodiak, AK 99615 (907) 487 -2185 - Alaska Business License # 113090 Alaska Contractors License # 19600 Kodiak Island Borough Sept 20, 2006 710 Mill Bay Road Kodiak, AK 99615 Attn: Kodiak Island Borough Assembly Rick Gifford, Borough Manager Re: Tract B Gravel Extraction Areas Dear Manager and Assembly: As you may be aware, on June 30 2007, the leases on the Tract B, gravel extraction areas will expire. In June 2006 Jim Purdy of Kodiak Land Surveying (KLS) performed a survey and quantity calculation of materials remaining on the Tract B gravel extraction areas (summary of his notes are attached). Various scenarios were calculated and the final survey results revealed the following: Quantity of gravel Digging Depth Remaining on tracts B -1 through B -4 1.178 million CY 1.422 million CY 2.790 million CY From a quality perspective, the materials extracted from the Tract B source are far superior to any other sources currently available within the Kodiak road system. Historically, all of the high quality aggregates needed for the production of concrete and asphalt have come from one of these sources. In recent years there has been much discussion relative to gravel resources within our community. Despite much effort by the Borough and many citizens, no reasonable alternatives have been put forth for a source of quality aggregate for use in the manufacture of asphalt, concrete and road materials Attempts have been made to use the local greywacke (shot rock) with very limited success. In general, shot rock is inferior to the alluvial deposits found in the B tracts. Even the best materials that we have available now, fails to meet the State of Alaska standard specifications. Historically, the state has relaxed their specifications to allow the use of the Bells Flats material, which has shown to give a reasonable product at a reasonable cost. • Page 2 To meet the demands of the community, in the near term, we see the following 4 alternatives: 1. A completely new site of extraction within a reasonable haul distance of town and quality characteristics similar to the existing B tracts. While this may be a viable option in the long term, it is impractical in the short term. A new material site will require a number of years to procure, permit and develop before any material can be extracted. 2. The use of native shot rock materials, which are of inferior quality, more expensive to extract and require more additives to produce a usable product. The end result is that the cost will be far greater for a product that is of lower quality. 3. Importation of aggregates from off - island sources. While this would produce a product similar to what we have historically used, the cost of procurement and transportation will be prohibitively high. 4. Renewal of the current Tract B leases until other sources can be identified. It's clear that this is the best alternative, striking a reasonable balance between price and quality. The KLS survey has revealed that there is a minimum of 1 million cy (2 million tons) of recoverable gravel. Our usage for the last 5 years has been: 2005 60,456 tons 2004 40,958 tons 2003 54,920 tons 2002 55,530 tons 2001 55,247 tons 267,111 tons Unfortunately, there is some public sentiment that is attempting to force the abandonment of the extraction activity on the B Tracts. While we understand the concerns, we would also like to point out that the original intent of these leases was to not only to provide a source of material for the entire community, but also to develop property around the lake that would ultimately be created. Obviously, the parties that drafted the leases in 1982 had no way of knowing how much would be extracted and at the time an assumption of 25 years would have been reasonable. To cease the development and extraction activities in 2007, based upon "guesstimate" made in 1982 would: • Force the community to pay higher prices for a lower quality products • Eliminate the revenues that the Borough receives though royalty payments • Eliminate_the_revenues_that_theBorough receives- though-lease -fees ($20,000 per year in lease fees and $1.25 per cy in royalty) • Leave a valuable natural resource untouched • Page 3 Michael R. Martin President Brechan Enterprises, Inc. All of which, would be a disservice to the community. In conclusion, we are hereby requesting that the Kodiak Island Borough allow additional time extensions to the Material Extraction Leases on the B- tracts. We suggest that there be 3 allowable time extensions of 5 years each, which would allow extraction activity to continue on the site until June 2022 or until such time that the resource is depleted or a realistic alternative source is located and developed. Please let us know if you need any additional information and we look forward to further discussion on this subject in the near future. Sincerely: Tom Allen President Aleutian Materials, Inc. 4;0: • • Duane Dvorak From: Bud Cassidy Sent: Thursday, April 05, 2007 8:31 AM To: Duane Dvorak Cc: Rick Gifford Subject: B tract photo- ground water copy.pdf Attachments: B tract photo- ground water copy.pdf Duane - Gary had dropped off some hard copy of this photo to Rick. Rick and I got together before he left and he wanted me to pass these to you for your P &Z lease case. I will provide you the hard copies that Gary provided Rick. Gary made the following comments based on this photo: • The low water table (winter drought) has left some of the adjacent neighborhood water wells (his included) dry. They all seem to be shallow wells at 15' because, he says, that bedrock is below and it is expensive to drill wells • He attributes the lack of well water to the lack of recharge of the area due to no rain, • He sees value in keeping the lower pond as a undisturbed area because in his estimation needs to be available for recharge of the groundwater and wells. So he is suggesting the following: • Only leasing the upper pond to Brechan • Leaving a dike, between the two ponds as a condition of the lease so that the lower pond acts as that recharge area for neighborhood wells. • He is thinking that Brechan does not need the lower pond any, because it is "played out" as far as a gravel source (my words) • It would also show, he suggests, that the Borough is serious in slowing moving Brechan off the site. He also said that he went to talk with Brechan. The party he made contact with was their finance fellow. Anyway, it sounded like you were drafting a staff report on the lease request and he wanted to provide this information Should you have any questions, let me know. Bud FGF B tract photo- ground water co... photo blacked out anellalenn mot} Mod luasaJd aigel Ja1eM puno.19 . a)gel ialem punoi6 Jawio j Po paB a7 e)Jns IaleM lid aDeyins punoTrIawao j )poapag (auuetp uois anid lanei9 Ob OS 09 (u) r8 0L nal3 OR algel Sa mog mol luasaMd awl Jalem punw9 - algel Jalem punoi6 iawod ) Iawpas 8 • pawpag • • o diak Island Borough . K OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9301 Fax (907) 486 -9374 E -mail: djensen @kib.co.kodiak.ak.us October 19, 2000 Final Finding and Decision Extension of Material Sales Contract Aleutian Materials, Inc. Tract's B -1 and B -2, Bells Flats Subdivision Requested Action: Aleutian Materials Inc. has submitted a request to amend the existing Material Sales Contract with the Kodiak Island Borough by adding 5 years to the contract generating a new termination date of June 30, 2007. Legal Authority: This action is taken pursuant to authority granted under AS 29.20.500 and KIB 2.20.030 J. 2. and by extension the Material Sales Contract Section 5 Option to Renew. Discussion: In response to the applicant's request, a compliance review of the contract, case file and property was conducted. Numerous items were found on -site that resulted in a Notice of Default dated 9/27/2000. The items referenced in the Notice are required to be cured prior to granting of the extension request. The existing contract is in force and the Kodiak Island Borough cannot unreasonably deny the applicants request. Pertinent Issues: As part of the review it was found that the amendment to the lease illegally exempted the taxable possessory interest in the property in violation of AS 29.45.030 and must be deleted. It is important to point out that the basis and logic for the exemption still applies, in that at the time of bidding there was no notice to the bidders that the property would be subject to possessory interest property taxes except for improvements. 5. Option to Renew. This contract may be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. KIB Resolution No. 59 -32 -R Passed slid - Approved - 716/89. 3 AS 29.45.010 (c) If a tax is levied on real property the tax must be assessed, levied, and collected as provided in this chapter. AS 29.45.030 (a) (1) (A), a private leasehold, contract, or other interest in the property is taxable to the extent of the interest. 7, Mr. John Zbitnoff, Vice President Aleutian Materials, Inc. P.O. Box 223 Kodiak, AK 99615 Dear Mr. Zbitnoff: 1 am writing in regard to the Notice of Default of the Material Sales Contract between your firm and the Kodiak Island Borough. After a staff review of the operation and contract we determined that there were certain parts of the operation that were not in compliance with the contract. Due to your quick and diligent efforts, all of the items of concern have been adequately addressed and your operation is in full compliance with the Contract. The Notice of Default is hereby rescinded and no further action is required. David Jensen Manager, Kodiak Is : ' •rough • Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9301 Fax (907) 486 -9374 E -mail: djensen @kib.co.kodiak.ak.us October 19, 2000 ck o Date • of $5,000 per tract per annum would have been affected Logic dictates that the bid price o $ , � if the property tax liability was known. I think an approp riate solution to this problem would be credit the annual payment for the amount of taxes paid pertains to the taxable interest in the land. Any improvements or personal property taxes should not b us r to the credit a s ihh State Law asso with the original bid. This process woul d bring and should not adversely affect the financial position of the lessee as the property tax is estimated to be less then the annual fee. Another issue is the use of the property ci� storage also maintenance of the equipment not based on related to gravel extraction. A residential attorney's advice, both of these uses of the property are not allowed. Another issue is the asphalt plant on the this whether a llowable use under the under the agreement. My research of the records. fou nd that is an agreement . Findings: In order to fully comply with the agreement and State Law, the attached amendment will need to be completed clarifying the treat�snt�oip�ro wcture taxes a �l extending i equipment, The Contractor has removed the machinery and other items of personalty not directly associated and necessary for the extraction and remanufacturing of gravel resources and is in compliance with the Agree ment Pat Carlson, Assessor -Lands Manager, Kodiak Island Borough I, the undersigned, have reviewed the application, case file and the property and find the applicant is in compliance with the applicable Borough ordinances regarding zoning and permitting. P. t c . Date P ob Scholze, • Acting Community Development Director, Kodiak Island Borough I, the undersigned, have reviewed KIB's financial records of the applicant pertaining to the contract payments and royalty fees and find that there are no outstanding financial liabilities and the required bonding is in force. Karl Short, Finance Director, Kodiak Island Borough Date Date 4 Att. Op. Steven Gray Esq., 5/31/89 Pg. 4, Para 2. "Use of the property for storage of other equipment and machinery, or use of the property for living purposes is clearly not allowed by the Material Sales Contract. s Att. Op. Joel Bolger, Esq. 7f24/84. Final Decision: The administrative findings presented above have been reviewed and considered. A review of the case file and a physical inspection of the facility has been conducted and the applicant has been found in full compliance with the existing material sales contract. The following amendments are incorporated by agreement of the parties as authorized by Section 31 of the Agreement. Pursuant to the authority granted me I hereby approve an extension of the existing material sales contract until June 30, 2007. David Jensen Manager, Kodi Borough l q O c.T' lie a v Date AMENDMENT TO Material Sales Contract Aleutian Materials, Inc. Tract's B -1 and B -2, Bells Flats Subdivision day of Ce err., 2000, by and between the AMENDMENT, made this Y Inc., "AMT': WHEREAS, the KODIAK ISLAND BOROUGH, contract entered and between t parties did MATERIALS make Provisions for the payment of real property taxes assessed on the Premises; and, WHEREAS, the parties agreed to an amendment to the contract on Sept. 7, 1984; and, WHEREAS, the method used for dealing with property taxes in that amendment does not comply with State Law, which requires the p property rtaxes and does not allow KIB the legal authority to exempt possessory pursuant to the WHEREAS, AMI requests the option to renew for an additional 5 years p agreement, NOW, THEREFORE, in consideration of the promises and mutual covenants of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, th�eparties hereby 1982 and mended September 7, that Paragraph 6 of the Material Sales Co , Y 1984, shall be amended as follows: 6. Annual Use Fee. the AMI on each anniversary (a) An annual use fee will be paid to KIB by data occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $5,000 and resulted from competitive bidding on June 24, 1982. No refund will be made to AMI for any portion of a year remaining;; be the dollar or dolldar or for the cancelled. (b) The annual use fee of $5,000 will amount of property taxes paid on the premises during the calendar year assessed against AMI's possessory interest in KIB's land if the annual use fee is timely paid in full. If AMI does not timely pay in full this section does not apply and the annual fee of $5,000 will be due in addition to the property taxes lawfully assessed against the Premises. FURTHER: AMI acting in good faith is in complete compliance with all provisions of the agreement and pursuant to Article 5 of the agreement a timely request for renewal of the terial option for extension having been received, parties �, 1984 and further aamended Sales Contract dated July 7, 1982 and amend September by this document shall be further amended as follows: 4. Term, The term of this contract is twenty five (25) years, beginning on July 1, 1982, and ending on June 30, 2007, (the balance of this section remains in force and unchanged). IN WITNESS WIIEROF, the parties have executed this Amendment to the Material Sales Contract the day and-year 'rst rime "_a OWNER: KODIAK ISLAND BOROUGH By CONTRACTOR: ALEUTIAN MATERIALS By } ss: } David Jensen, Boro John Zbitnoff, Vice President STATE OF ALASKA } } ss: THIRD JUDICIAL DISTRICT ) f THIS IS TO CERTIFY that on the .L. day of before me, the undersigned, a Notary • •lic in an' 1 the State of Alaska, duly commissioned and sworn as such, personally PPe __ rsonall a ared ► �. •' , to me known to be the to me to Manager of the KODIAK ISLAND BOROUGH, a Mu `he i Materia�l Sales Contra, and on behalf of be the person who executed the within Amendment to the Municipal Corporation herein named, and acknowledged to me that the stated and ed as a free act and deed of said Municipal Corporation for the uses and purpo pursuant to its ordinances or a resolution of its Assembly. WTFNES d notarial seal the da and • first ritten above. Notary Pub is in and for Alaska / My commission expires CI a( ` STATE OF ALA THIRD JUDICIAL DISTRICT (x;C� 12,t!_ THIS IS TO CERTIFY that on the day of , 2000, before me, the undersigned, a Notary Public n and or the State of Alaska, duly commissioned • and sworn as such, personally appeared 011...1111 , known by me to be the Vice President of Aleutian Materials Inc., a corporation, and known to me to be the person who executed the within Amendment to the Material Sales was s ac t a� fof �� and � of said herein named, the uses and purposes therein stated and pursuant to its Bylaws or a resolution of corporation for t its Board of Directors. WITNESS my hand and notarial seal the da and first written above. Public in an • for Alaska Q4/ ka__ My commission expires SENT BY JOIL H. ■OLOIII MA1Y64I% O. JAY1N July 24, 1984 ,8_ 0 ; 2:51PM ;Jamin Ebell Schmitt RIGHTFAX;# 5/ 7 JAMIN & BOLGER ATT011NIYI Al LAW POST OFFICE BOX 193 KODIAK, ALASKA 99618 49071 Linda Freed Kodiak Island Borough P.O. Box 1246 Kodiak, Alaska 99615 RE: Felton Construction Material Sales Contract near Linda: This letter is in response to your letter of July 19, 1984. I will prepare an amendment to the material sales contract that would allow the Felton tracts to be considered as one tract for the purpose of the continuing extraction requirement. I, have also reviewed the contract with respect to the objection raised by Brechan Enterprises, Inc. Apparently an asphalt plant is going to be set up on the Felton tract. The asphalt plant in question belongs to Kodiak Contractors, Inc. The first paragraph of the Felton material sales vontract gives Felton the right to enter on the tract for the purpose of extracting, remanuf acturing and removing gravel resources. Paragraph 3 specifically defines gravel remanufacturing as "crushing, screening, washing and the use of'gravel in manufac- turing proceeaee to create road asphalt and concrete, and opera- tion of all equipment and machinery required for and aseociated with remanufacturing." With respect to assignment of rights under this contract paragraph states the approval." follows: this contract cannot be assigned The agreement under which Kodiak Contractors is allowed to enter onto the Felton tract for the purpose of asphalt remanu- facturing is an assignment of rights under the material sales contra ' Paragraph 17 requires this assignment to be approved by the Kodiak Island Borough. I suggest that you request a copy of the agreement between SENT BY: Letter TO Linda Freed RE: Felton Construction Material Sales Contract DATE: July 24, 1984 Page 2 Felton Construction Company and Kodiak Contractors for review by the Assembly. The Assembly may determine whether or not to approve the assignment under paragraph 17 of the material gales contract. Such approval should not be unreasonably withheld. Sincerely yours, Joel H. Bolger Attorney JHB /vkb 111/18— 0 ; 2 :52PM gamin Ebel! Schmlt , RIGHTFAX;# 6/ 7 SENT BY: July 6, 1984 108 0 ; 2 :48PM ;JamIn Ebell Schmitt. RIGH'iFAX;# 3/ 7 III BRECHAN ENTERPRISES, INC /GENERAL CONTRACTORS BOX 1276 PHONE 11571 485-3215 Mr. Phil Shealy Borough Manager Kodiak Island Borough Box 1246 Kodiak, Alaska 99615 Dear Sirs= It hae come to our attention that the leaseholder of Tracts B1 and B2 is setting up an asphalt plant contigious to our existing leasehold and although the materials extraction lease directly allows the leasehold to set up such a plant, we are wondering if it infect is his asphalt plant and whether or not it complies with his development plan as is required by the existing leases. Rumor -mill has it that the asphalt plant being erected may belong to another con- tractor and this might not be in the best interest of the Borough or in compliance with the existing materials lease. As we have been involved in several battles over these material leases already perhaps it would be in the best interest of the Borough to look into the matter before it comes to the Assembly's attention. Sincerely yours, BRECHAN ENTERPRISES, INC. /O Michael C. Brechan President KODIAK, ALASKA 99615 MC8/ j m j We An An Equal Opporonfty Employer Kvj!uk Island Be'ough Kocliol:, Alaska RECEIVED 1111 - . - y° P M 19! -,I.I 11" 1 ! tit RE; Tracts 83 and B4A Bells Flats Alaska Subdivision. 018- 0 ; 2:50PM ;Junin Ebell Schmlta� KODIAK ISLAND BOROUGH SENT BY; Joel Bolger Jamin & Bolger Box 193 Kodiak, Alaska 99615 RL: Material Sales Contracts Bells Flats Dear Joel: 1 have two ''projects" for you related to our material sales contracts with Felton Construction Company and Brechan Enterprises, Inc. For your informantion, I have enclosed a complete contract for one of the tracts in Bells Flats (B -1). The other three (3) contracts are the same except for the tract identification number and size (in acres). First, the Assembly recently reviewed the attached letter cp Construction Company. The Assembly would like you to draft an contract(s) that would allow the tracts in common ownership to as one tract, for the purpose of the default clause found in the Second, the Assembly would like you to investigate the matter brought to the Borough's attention in the letter from Brechan Enterprises (attached). It is the feeling of staff and the Assembly that the "setting up" of a batch plant on Tract B1 or 82 by a contractor, other than the one holding the materials sales contract with the Borough, is not a violation of the contract. It is our understanding from Jim Graham (This was discussed at the ,Assembly work session on July 12th.) that ... 11_31.0-4118111 in auer+tinn tbelon s to Kodiak L nc. and that they have a verbal agreement to set up t e plant on the property in f echange for gravel aite. Further information available (487-4072) or Burt Reanier, prom either Jim Gzr�ham, Kodiak Contractors, Inc. (486- 3274). 1 would like to have this information by August 1, 1984 for inclusion in the August Assembly packet. Sincerely, KODIAK ISLAND BOROUGH - Linda Free Actin_ Borough Manager jh cc: Mike Brechan, Brechan Enterprises, Inc. Jim Graham, Felton Construction Company Burt Reanier, Kodiak Contractors, Inc.. ' RIGHTIAX;# 4/ 7 Telephones 486.5736 - 486 -5737 — Bwt 1246 KODIAK, ALASKA 99615 July 19, 1984 1l 1R ees8 from Felton amendment to the he considered contract. SENT BY: December 24, 1984 Mr, Joel Bolger Jamin and Bolger P.O. Box 193 Kodiak, Alaska 996 8 0 ; 2 :52PM ;Jamin Ebell Schmitt -+ RIGHTFAX'# 7/ 7 ' r .. Kodiak Island Borough P.O. BOX 1246 KODIAK, ALASKA 91615.1246 PHONE (*(17) 46.6736 Dear Joel: Subject: Material Sales Contract I was going through a pile of pending material and found the attached information. I don't recall any amendments being Wafted to our material sales contracts that would allow the tracts in common ownership to be considered as one tract for the purposes of the default clause found in the contract. I believe that we should have amendments drafted for the two (1) Felton contracts and the two (Z) Brechan contracts. If you have any questions, or if this has been done already and I don't know about it, please call me. Sincerely, COMMUNITY DEVELOPMENT DEPARTMENT Linda L. Freed Planning Director amm Enclosures (2) cc: Mr. Jim Graham, Felton Construction Company Mr. Mike Brechan, Bret:han Enterprises, Inc. SENT BY: Sincerly; 4,18- 0 ; 2 :48PM ;Jamin Ebell Schmitt RIGHTFAX;# 2/ 7 FELTON CONSTRUCTION COMPANY P. Q. Box 7099 3850 Grant Crook Rood June 29, 1984 Kodiak Island Borough Box 1246 Kodiak, AK. 99615 Att: Lindy Freed Missoula. Montana 59807 Phone 408/728 -9100 Dear Linda; This letter confirms our previous discussions concerning our material leases on tracts 9-1 and B -2 in Bells Flats, As you are well aware, there is a clause in the lease agreement which states that a "substantial amount" of gravel must be extracted from each lease site within every 2 year period. In compliance with the foregoing provision, we have extracted approximately 200 cy from 9 -2 and approximately 40,000 cy from B -t. In addition we have expended considerable time and money in the last°'2 years for development and ex- traction of gravel from 9 -2. These development costs will permit us to extract gravel consistent with sound conservation prin- cipals established by the lease agreement. As we have discussed with you, we intend to continue to develop tracts R -1 and B. as though they were a single site. Since the two tracts are adjacent, this procedure will permit maximum utilization of both lots, enhance productivity and insure environmentally sound development. At present B -1 i.s about 95% developed and B -2 25 %. While it is possible to immediately extract larger amounts of gravel from A -2, it is impractacle to do so. We presume that the Borough wants to see an efficient extraction operation, hence the stipulation that work occur within every 2 year period.. We believe that the foregoing plan is consistent with that intent. We extract gravel on a daily basis, but having to work at two seperate locations would hamper our total operation. In light of the foregoing, we intend to contitue to develop B -1 and B -2 as outlined above, consistent with the terms and conditions of the lease agreement. James Graham fah KODIAK ISLAND BOROUGH RESOLUTION NO. 82 -25 -R A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY AUTHORIZING NTRACTS GRAVEL Island Borough) 8-2, 8 -3 0 WHEREAS, the Planning and Zoning Commission and Borough staff have , expended much effort to create a realistic material soles contract outline :which takes into account concerns expressed by citizens, contractors and public o fficials at numerous public meetings; and WHEREAS, the Planning and Zoning Commission, at the Assembly's !direction considered at length the problems involved with gravel extraction act specifically Tracts 8 -1, B -2, 8 -3 and B -4A in i,ivities on Borough owned land, spa • i Belts Flats Alaska Subdivision, and recommended at its March 17, 1982 meeting, 'material sales contracts as the preferred method of gravel extraction. NOW, THEREFORE, BE 11 RESOLVED the the administration is authorized in accordance with chapter 18.60 of Borough Code, to prepare material fsales ' contracts, using the outline recommende as Planning Tracts Commission, + B2 B-3 end 8 -4A, removal of gravel from Borough owned land Bells Flats Alaska Subdivision, with the following conditions: 1. Contracts shall be offered through a public bidding process: 2, Bid bests shall be u s e any beginnin9eet;$ ,ODO per ; year per tract with the fee being i I 3. No more than two tracts shell be obtained by any person, his �e irs, executors, administrators or assigns, firms, partnerships or corporations 1 ' 4. A performance bond, contractor's license and liability insurance + polity are required to be a bidder; end ' 5. Prior improvements to the land involved may.: be recognized and 1 f value placed thereon. PASSED AND APPROVED TH15_1_21-.____ DAV Of l � BY : \'' i TTEST:— KODIAK 15L OROUGH or , 1982. / iir„ 4 4■r :o •ug '` KIBS274497 • AMENDMENT TO MATERIAL SALES CONTRACT AMENDMENT, made this 7th day of September , 1984, by and between KODIAK ISLAND BOROUGH, hereinafter "Owner," and FELTON CONSTRUCTION COMPANY, hereinafter "Contractor ": WHEREAS, the parties have entered into a Material Sales Contract regarding Tract 8 -2, Bells Flats Alaska Subdivision, Kodiak Recording District, Third Judicial District, State of Alaska, hereinafter "Premises "; and, WHEREAS, the contract entered into between the parties did not make provisions for the payment of real property taxes assessed on the Premises; an( WHEREAS, the parties desire to amend the contract in order to provide for the allocation of a portion of the annual use fee as payment of any future real property taxes. NOW, THEREFORE, in consideration of the promises and mutual covenant: of the parties hereto, and for other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged and confessi the parties hereby adopt this amendment, and agree that Paragraph 6 of the Material Sales Contract dated July 7, 1982, shall be amended to read as follow 6. Annual Use Fee: (a) An annual use fee will be paid to the Owner by the Contrac on each anniversary date occurring during the term of the contract. The annua use fee for the tract of land described in Section 1 above is $5,000.00 and resulted from competitive public bidding on June 24, 1982. No refund will be made to the Contractor for any portion of a year remaining if this contract is terminated or cancelled. (b) The annual use fee includes any and all real property taxE assessed on the Premises; and the Kodiak Island Borough Finance Director will allocate a portion of the annual use fee as payment of any assessed real prop( taxes. However, in no event shall the Contract be liable for a payment in ex( of the annual use fee, except as provided in Section 7 hereof. KIBS274498 -2- By IN WITNESS WHEREOF, the parties have executed this Amendment to Material Sales Contract the day and year first above written. OWNER: KODIAK ISLAND BOROUGH CONTRACTOR: FELTON CONSTRUCTION COMPANY By STATE OF ALASKA ) ss: THIRD JUDICIAL DISTRICT ) . , 1984, THIS IS TO CERTIFY that on the day of;. � duly before me, the undersigned, a Notary Publ cnfor Jerome Me Selby as a, to commissioned and sworn as such, personally appeared n the KODIAK ISLAND BORUGH, a Municipal me known to be the Mana,er Corporation, and known to me to e t e person who executed the within Amendment to Material Sales Contract on behalf of the Municipal Corporation herein named, and acknowledged to me that the same was signed as a free act and deed of the said Municipal Corporation resolution o dspurposes therein stated and pursuant sat WITNESS my hand and notarial seal the day and year first a written. Ce- • �£lac ' ska - — �., f g c n andr ssion expires Notaf My co STATE OF ALASKA ss: THIRD JUDICIAL DISTRICT ) d of _r'�rtc THIS IS TO CERTIFY that on the 0-day , 1984, aa' before me, the undersigned, a Notary Publ c to and for 4tbttep7 State / of Alaska, duly commissioned and sworn as such, personally a ppe ar ONSI = itUCTIDN CO� PoA Y! to me known to be the, f r �. •s= corporation, and known o me to be the person who executed the within Amendment to Material Sales Contract on behalf of the corporation herein named, and acknowledged to me that the same was signed as a free act and deed of the said corporation for the uses and purposes therein stated and pursuant to its Bylaws or a resolution of its Board of Directors. WITNESS my hand and notarial seal the day and year first above written. Notar i s nand for �.- ,. My commslon expires r •� BOND FOR PERMIT (LEASE) KNOW BY MEN THESE PRESENTS, THAT Aleutian Materials, Inc., as Principal, and Safeco Insurance Company of America, as Surety, are held and firmly bound unto the Kodiak Island Borough in the sum of Ten Thousand and No /100 Dollars ($10,000.00), lawful money of the United States, for the payment of which, well and truly be made, we bind ourselves, executors, administrators and successors, jointly and severally, firmly by these presents. The conditions of this obligation are such, that whereas the above named principal entered into a permit (lease) of the lands described therein and upon conditions therein expressed, which permit (lease) bears the following description: Tract B -1, Bells Flats Alaska Subdivision NOW THEREFORE, if the said principal, his heirs, executors, administrators and successors, shall faithfully carry out the obligations and observe the requirements of said permit (lease) and shall duly keep, perform and abide by each and every term and provision of said permit (lease) as therein stipulated and agreed, then this obligation shall be null and void; otherwise to remain in full force and effect. LIABILITY UNDER THIS BOND shall be continuous until released by the Kodiak Island Borough or until 30 days written notice of cancellation to the Kodiak Island Borough. IN WITNESS WHEREOF, the said principal and the said surety have affixed their hands and seals this 6 day of February, 2001. Aleutian Materials, Inc. Principal By: / l�ce26L . Safec• In urance Company of America Sure R Bond No. 6089161 Chrism M. Sweet, Attorney -in -Fact S AFEC0 ATTORNEY F ATTORNEY KNvry ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each heret appoint JAMES JAMES L. FERGUSON, KURT IMIO; CHRISTIN M. SWEET; LISA M. BATTISTA; Anchorage, Alaska its true and lawful attomey(s) -In-fad, with MI authority to execute on tts behalf fidelity and surety bonds or undertakings and other documents of a similar charact Issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed ar attested these presents this 22 RA. PIERSON, SECRETARY SA INSURANCE COMPANY OF AMERICA G INSURANCE COMPANY OF AMERICA H FF10E: SAFECO PLAZA SEATTLE, WASHINGTON 98185 No. 4153 day of April , 1999 ,6,0441,414.444 W. RANDALL STODDARD, PRESIDENT CERTIFICATE Extract from the By - Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for 11 purpose by the officer In charge of surety operations, shall each have authority to appoint individuals as attomeys - in - fact or under other appropriate titles with authority execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company In the course of its business... On a instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any Instrument conferring such authority or on any bond - rtaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall t ,ecessary to the validity of any such Instrument or undertaking." Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Artie V, Section 13 of the Bylaws, and (II) A copy of the power -of- attorney appointment, executed pursuant thereto, and (ill) Certifying that said power -of- attomey appointment Is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, R.A. Pierson, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that foregoing extracts of the 8y -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attomey issued pursuant thereto, are true correct, and that both the By -Laws, the Resolution and the Power of Attorney are still In full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation S -0974/SAEF 7198 this 6th day of February 2001 R.A. PIERSON, SECRETARY 5 Registered trademark of SAFECO Carper 4/22/99 • Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and Aleutian Materials, Inc., hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. In accordance with Title 18, Real Property, of the Kodiak Island Borough Code and based on the condition of KIB Resolution No. 89 -32 -R, the Owner hereby grants to the Contractor the right to enter upon Tract BB = 1, Bells Flats Alaska Subdivision, hereinafter premises, which contains a total of approximately 19.95 acres, for the purpose of extracting, remanufacturing, and removing gravel resources. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel, and operation of all equipment and machinery required for the associated with extraction. 3. Gravel Remanufacturing. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete, and operation of all equipment and machinery required for and associated with remanufacturing. Contractor may not maintain on the premises any equipment or other material not related to gravel extraction or remanufacturing. 4. Term. The term of this contract is thirteen (13) years, beginning on July 1, 1989, and ending on June 30, 2002, or until the gravel resource is extracted, whichever occurs first. The Contractor may, if in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or B. Lack of gravel which is economically feasible to extract; or C. Bankruptcy of the Contractor. Notice of request for early termination shall be accomplished not less than ninety (90) days prior to contract anniversary date and in accordance with the provisions of Section 28 herein. KIBS115475 5. Option to Renew. This contract m be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ 5,000.00 and resulted from competitive public bidding on June 24 , 1982. No refund will be made to the Contractor for any portion of a year remaining if this contract is terminated or cancelled. 7. Royalty Rate. The Owner hereby establishes a royalty rate of $0.85 per cubic yard for materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish on an annual basis, the minimum unit price for materials to be sold. The Contractor will reimburse the Owner for excavated materials upon receipt of a billing from the Owner, which shall be not less than annually during the term of the contract. Each new annual rate shall apply to the materials excavated during each twelve -month period established by Section 6. 8. Volume Determination. In accordance with Section 18.60.040 of the Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume determinations for excavated materials, The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The Contractor's measurements will be submitted to the Owner on an annual basis and not less than thirty (30) days prior to the anniversary date of this contract. All measurements shall be in units of cubic yards. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B -1, B -2, B -3, and B -4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A. 10. Performance Standards. The following performance standards shall be met by the Contractor: a. Buffer Area. A buffer area two hundred (200) feet in width shall extend from all platted property lines or the banks of the Russian River to the edge of the gravel extraction area, except as shown on Exhibit A. Not -2- KIBS115476 more than one hundred (100) feet shall be adjacent to the area to be excavated. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the cleared portion of the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2:1) side slopes or flatter, to water's edge, shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty -five (25) feet below grade. e. Brush Removal. All brush shall be removed from not less than two- thirds (2/3) of the property described in Section 1 above before any gravel is extracted. Brush shall be burned or removed from the premises and may not be placed in the excavated area or buffer area on the premises. f. Trees. No trees, stumps, or parts of trees shall be placed in the excavated area or buffer area on the premises. g. Access. Ingress and egress shall be limited to one point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10:00 p.m. daily. 12. Haul Road. For the purposes of this contract, the designated haul roads area are as follows: a. From Tracts B -1, B -2, B -3, and B -4A to Chiniak Road via Middle Bay Drive to Bells Flats Road, Bells Flats Road to Sargent Creek Road, and Sargent Creek Road to Chiniak Road. b. From Chiniak Road to Tract B -1, B -2, B -3, and B -4A via Sargent Creek Road to Middle Bay Drive and Middle Bay Drive to Tracts B -1, B -2, B -3, and B -4A. c. Also included as a designated haul road is Uyak Drive fronting Block 3, Tract A, Bells Flats Alaska Subdivision. Temporary closure, by reason of emergency, or for repair or improvement, shall not excuse performance by CoL LaC tuL vL ere- - - - - • 13. Speed Limit. Truck speed on the designated haul road shall be limited to twenty -five (25) miles per hour. -3- KIBS115477 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall constitute default. 15. License. Contractor shall possess a valid State of Alaska contractor's license. Failure to possess said license shall constitute default. 16. Insurance Required. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept in force for the mutual benefit of Owner and Contractor, comprehensive broad from general public liability insurance against claims and liability for personal injury, death or property damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death of any one person, at least $1,000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this contract shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt, or with certificates evidencing the insurance. Before commencement of the contract, Contractor shall furnish Owner with binders representing all insurance required by this contract. If Contractor fails or refuses to procure or to maintain insurance as required by this contract, or fails or refuses to furnish Owner with required proof that the insurance has been procured and is in force and paid for, owner may, at Owner's election and without notice, procure and maintain such insurance, or may terminate this contract without liability by written notice to Contractor. Any premiums paid by owner shall be treated as an added fee -4- • KIBS115478 due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to construct or otherwise make new improvements on any part or all of the premises, to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or part, and to modify or change the contour or grade, or both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements. Within ninety (90) days after expiration of this contract, Contractor shall at his expense, remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Owner and may be sold at auction, leased as part of the premises, or otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against any claims, liabilities, or losses of any type arising out of performance pursuant to this contract together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, settling, defending and otherwise protecting against such claims. In accordance with Section 28 herein, Owner shall promptly notify the Contractor of any loss or claim, and shall tender defense of such claim to Contractor prior to negotiating, settling, or defending such claim. 22. Maintenance. Throughout the term, Contractor shall at his sole cost and expense, maintain the premises and improvements in good condition and repair, and in accordance with all applicable laws, rules, ordinances, orders i _.- 0 - t -h-..- a „ta l agencies and regu ations o e.e a , - - -, -5- KIBS115479 • and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free access to the premises at all reasonable times for the purpose of inspecting the conditions thereof in order to exercise any right or power reserved to Owner under the terms and provision of this contract. 24. Default. Each of the following events shall be a default by Contractor and a breach of this contract: a. Failure to make any payment as provided in Sections 6 and 7 or this contract, or of any other sum required by this contract to be paid by the Contractor, or failure to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor to attachment, execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operation on the premises for any reason, including, but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution , or arrangement on account of, or to prevent bankruptcy or insolvency. e. The failure of the Contractor to occupy the land or to perform according to the terms of this contract within twelve months of the execution of this contract, or failure within any two (2) year period to extract, process, and remove a substantial quantity of gravel from the premises. If the alleged default is non - payment of annual use fee, royalty rate or other sums to be paid by Contractor under this contract, Contractor shall have ten (10) days after notice is given to cure the default. For any other default, Contractor shall promptly and diligently, after the notice, commence durin the default and shall have thirty (30) days after notice is given to complete the cure. -6- KIBS115480 25. Owner's Remedies on Default. If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in the alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the premises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good condition, and Owner may re -enter and take possession of the premises and all remaining improvements and eject all parties in possession, or eject some and not others or eject none. b. If this agreement is referred by Owner to an attorney upon any default by Contractor, Contractor shall pay Owner the latter's reasonable attorney fees, regardless of whether or not nay suit or action is commenced. 26. Non - Waiver. No failure on the part of the Owner to enforce any covenant or provision herein contained, nor any waiver of any right hereunder by the Owner shall discharge or invalidate such covenants or affect the right of the Owner to enforce same in the event of any subsequent breach or default. 27. Construction. The obligations of the undersigned parties are joint and several, and wherever the context hereof so admits or requires, the singular shall include the plural. The covenants, terms and conditions of this agreement shall extend to and be binding upon and insure to the benefit of the heirs, executors, administrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail addressed as follows: Owner Borough Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 r to such other persons or addresses as Owner or Contractor may from time to time designate in writing. -7- Contractor Mr. Richard C. Egge, President Aleutian Materials, Inc. P. 0. Box 1188 Woodinville, Washington 98072 KIBS115481 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare a mutually acceptable substitute provision for any provision stricken from this contract due to illegality, and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provision shall remain in full force and effect as though the stricken provisions had never appeared in this contract. Each provision of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for the State of Alaska in Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. ATTEST oroug W -8- • OWNER 'Kodiak Island Borough By: CONTRACTOR Aleutian Mate By: i ff R/3 KIBS115482 /OD r R. a - /9 4O AdRSe I •••••., \ \...., TR•E' - 2 • ,... ∎ /9.71 AcRE's \ B�\ • s ir \\ G � Pg t � \ \ t f CT'- cl, '1,4,c.444, \ ■ i' O • vp \ bra' 7a. B -yA \ 1 f: 6 V A CRES .\ / /� s /E 2 c '!'t'F,¢� / - J • l3 EXHIBIT A /..-v KIBS115483 8C TR .P. • a tt the provisions of Section 28 herein. • Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and Aleutian Materials, Inc., hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. In accordance with Title 18, Real Property, of the Kodiak Island Borough Code and based on the condition of KIB Resolution No. 89 -32 -R, the Owner hereby grants to the Contractor the right to enter upon Tract B = 2, Bells Flats Alaska Subdivision, hereinafter premises, which contains a total of approximately 19.72 acres, for the purpose of extracting, remanufacturing, and removing gravel resources. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel, and operation of all equipment and machinery required for the associated with extraction. 3. Gravel Remanufacturing. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete, and operation of all equipment and machinery required for and associated with remanufacturing. Contractor may not maintain on the premises any equipment or other material not related to gravel extraction or remanufacturing. 4. Term. The term of this contract is thirteen (13) years, beginning on July 1, 1989, and ending on June 30, 2002, or until the gravel resource is extracted, whichever occurs first. The Contractor may, if in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or B. Lack of gravel which is economically feasible to extract; or C. Bankruptcy of the Contractor. Notice of request for early termination shall be accomplished not less than ninety (90) days prior to contract anniversary date and in accordance with KIBS115466 • 5. Option to Renew. This contract may be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ 5.000.00 and resulted from competitive public bidding on June 24 , 1982. No refund will be made to the Contractor for any portion of a year remaining if this contract is terminated or cancelled. 7. Royalty Rate. The Owner hereby establishes a royalty rate of $0.85 per cubic yard for materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish on an annual basis, the minimum unit price for materials to be sold. The Contractor will reimburse the Owner for excavated materials upon receipt of a billing from the Owner, which shall be not less than annually during the term of the contract. Each new annual rate shall apply to the materials excavated during each twelve -month period established by Section 6. 8. Volume Determination. In accordance with Section 18.60.040 of the Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume determinations for excavated materials. The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The Contractor's measurements will be submitted to the Owner on an annual basis and not less than thirty (30) days prior to the anniversary date of this contract. All measurements shall be in units of cubic yards. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B -1, B -2, B -3, and B -4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A. 10. Performance Standards. The following performance standards shall be met by the Contractor: a. Buffer Area. A buffer area two hundred (200) feet in width shall extend from all platted property lines or the banks of the Russian River to the edge of the gravel extraction area, except as shown on Exhibit A. Not -2- KIBS115467 • more than one hundred (100) feet shall be adjacent to the area to be excavated. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the cleared portion of the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2:1) side slopes or flatter, to water's edge, shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty -five (25) feet below grade. e. Brush Removal. All brush shall be removed from not less than two- thirds (2/3) of the property described in Section 1 above before any gravel is extracted. Brush shall be burned or removed from the premises and may not be placed in the excavated area or buffer area on the premises. f. Trees. No trees, stumps, or parts of trees shall be placed in the excavated area or buffer area on the premises. g. Access. Ingress and egress shall be limited to one point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10:00 p.m. daily. 12. Haul Road. For the purposes of this contract, the designated haul roads area are as follows: a. From Tracts B -1, B -2, B -3, and B -4A to Chiniak Road via Middle Bay Drive to Bells Flats Road, Bells Flats Road to Sargent Creek Road, and Sargent Creek Road to Chiniak Road. b. From Chiniak Road to Tract B -1, B -2, B -3, and B -4A via Sargent Creek Road to Middle Bay Drive and Middle Bay Drive to Tracts B -1, B -2, B -3, and B -4A. c. Also included as a designated haul road is Uyak Drive fronting Block 3, Tract A, Bells Flats Alaska Subdivision. Temporary closure, by reason of emergency, or for repair or improvement, shall not excuse performance by Contractor or create any liability for Owner. 13. Speed Limit. Truck speed on the designated haul road shall be limited to twenty -five (25) miles per hour. -3- KIBSI15468 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall constitute default. 15. License. Contractor shall possess a valid State of Alaska contractor's license. Failure to possess said license shall constitute default. 16. Insurance Reouired. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept in force for the mutual benefit of Owner and Contractor, comprehensive broad from general public liability insurance against claims and liability for personal injury, death or property damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death of any one person, at least $1,000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this contract shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt, or with certificates evidencing the insurance. Before commencement of the contract, Contractor shall furnish Owner with binders representing all insurance required by this contract. If Contractor fails or refuses to procure or to maintain insurance as required by this contract, or fails or refuses to furnish Owner with required proof that the insurance has been procured and is in force and paid for, owner may, at Owner's election and without notice, procure and maintain such insurance, or may terminate this contract without liability by written notice to Contractor. Any premiums paid by owner shall be treated as an added fee -4- KIBS115469 due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to construct or otherwise make new improvements on any part or all of the premises, to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or part, and to modify or change the contour or grade, or both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements. Within ninety (90) days after expiration of this contract, Contractor shall at his expense, remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Owner and may be sold at auction, leased as part of the premises, or otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against any claims, liabilities, or losses of any type arising out of performance pursuant to this contract together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, settling, defending and otherwise protecting against such claims. In accordance with Section 28 herein, Owner shall promptly notify the Contractor of any loss or claim, and shall tender defense of such claim to Contractor prior to negotiating, settling, or defending such claim. 22. Maintenance. Throughout the term, Contractor shall at his sole cost and expense, maintain the premises and improvements in good condition and repair, and in accordance with all applicable laws, rules, ordinances, orders and regulations of Federal, State, Municipal and other governmental agencies -5- KIBS115470 complete the cure. 1 and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free access to the premises at all reasonable times for the purpose of inspecting the conditions thereof in order to exercise any right or power reserved to Owner under the terms and provision of this contract. 24. Default. Each of the following events shall be a default by Contractor and a breach of this contract: a. Failure to make any payment as provided in Sections 6 and 7 or this contract, or of any other sum required by this contract to be paid by the Contractor, or failure to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor to attachment, execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operation on the premises for any reason, including, but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution , or arrangement on account of, or to prevent bankruptcy or insolvency. e. The failure of the Contractor to occupy the land or to perform according to the terms of this contract within twelve months of the execution of this contract, or failure within any two (2) year period to extract, process, and remove a substantial quantity of gravel from the premises. If the alleged default is non- payment of annual use fee, rny'1ry rate or other sums to be paid by Contractor under this contract, Contractor shall have ten (10) days after notice is given to cure the default. For any other default, Contractor shall promptly and diligently, after the notice, commence during the default and shall have thirty (30 days atter not ice given to KIBS115471 • 25. Owner's Remedies on Default. If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in the alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the premises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good condition, and Owner may re -enter and take possession of the premises and all remaining improvements and eject all parties in possession, or eject some and not others or eject none. b. If this agreement is referred by Owner to an attorney upon any default by Contractor, Contractor shall pay Owner the latter's reasonable attorney fees, regardless of whether or not nay suit or action is commenced. 26. Non- Waiver. No failure on the part of the Owner to enforce any covenant or provision herein contained, nor any waiver of any right hereunder by the Owner shall discharge or invalidate such covenants or affect the right of the Owner to enforce same in the event of any subsequent breach or default. 27. Construction. The obligations of the undersigned parties are joint and several, and wherever the context hereof so admits or requires, the singular shall include the plural. The covenants, terms and conditions of this agreement shall extend to and be binding upon and insure to the benefit of the heirs, executors, administrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail addressed as follows: Owner Borough Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Contractor Mr. Richard C. Egge, £'resident Aleutian Materials, Inc. P. 0. Box 1188 Woodinville, Washington 98072 or to such other persons or addresses as Owner or Contractor may from time to time designate in writing. -7- KIBS115472 ATTEST ;, By: , �v . Bbroug k • 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare a mutually acceptable substitute provision for any provision stricken from this contract due to illegality, and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provision shall remain in full force and effect as though the stricken provisions had never appeared in this contract. Each provision of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for the State of Alaska in Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. OWNER Kodiak Island Borough By: CONTRACTOR Aleutian ioa' • EXHIBIT A e. • KIBS115474 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM /DD/YY) POLICY EXPIRATION DATE (MM /DDY) LIMITS A GENERAL LIABILITY 'COMM ' ERCIAL GENERAL LIABILITY 06BLS55211 02/01/06 02/01/07 EACH OCCURRENCE $1,000,000 $100, —7 FIRE DAMAGE (Any one fire) CLAIMS MADE [ X 1 OCCUR MED EXP (Any one person) $5,000 $1,000,000 PERSONAL & ADV INJURY GENERAL AGGREGATE $2,000,000 GEN'L AGGREGATE LIM ITAPPL IES PER: PRODUCTS - COMP /OP AGG $2,000,000 — POLICY PRO- LOCI JECT A AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 06BAS55212 02/01/06 02/01/07 COMBINED SINGLE LIMIT (Ea accident) $ X BODILY INJURY (Per person) X X BODILY INJURY (Per accident) PROPERTY DAMAGE (Per accident) GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS LIABILITY EACH OCCURRENCE $ OCCUR I CLAIMS MADE AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY BB1060772 02/01/06 02/01/07 X WC STATU- OTH- TORY LIMITS ER $1,000,000 E.L. EACH ACCIDENT E.L. DISEASE -EA EMPLOYEE $1,000,000 E.L. DISEASE • POLICY LIMIT $1,000,000 OTHER DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLES /EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS Evidence of Insurance C) Ai' I'; .. '• ..... ACORD.. CERTIFICA• OF LIABILITY INSURIWICE 02/03/ 6 PRODUCER Parker Smith & Feek Anchorage Office g 40P^ Old Seward Hwy., Ste. 200 A, Jrage, AK 99503 -6067 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURED Brechan Enterprises, Inc. 2705 Mill Bay Road Kodiak, AK 99615 I INSURER A: Alaska National Ins. Co. INSURER B: SeaBright Insurance Company INSURER C: INSURER 0: INSURER E: COVERAGES Kodiak Island Borough Fianance Department 710 Mill Bay Road Kodiak, AK 99615 SHOULD ANYOF TH E ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICETOTHE CERTIFICATE HOLDERNAMEDTOTHELEFT, BUT FAILURE TO DO SO SHALL IM POSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON TH E INSURER,ITS AGENTS OR REPRESENTATIVES. A / UT ORIZED REEP&REESSE�NTATTII E CERTIFICATE HOLDER ACORD 25 -S (7197)1 of 2 ADDITIONALINSURED ;INSURERLETTER: #S64753/M60065 CANCELLATION MRFOO 0 ACORD CORPORATION 1988 2, THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADD'L IN$RQ TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MWDD/YY1 POLICY EXPIRATION DATE (MM /DD/YY1 LIMITS A INSURED GENERAL LIABILITY 04LLS55211 12/31/2004 12/31/2005 EACH OCCURRENCE $ 1, 000,000 $ 100 000 X COMMERCIAL GENERAL LIABILITY PREM SES (Ea RENT INSURER D: CLAIMS MADE X OCCUR MED EXP (Any one person) , $ 5 000 PERSONAL & ADV INJURY , $ 1, 000, 000 $ 2,000,000 $ 2, 000, 000 GENERAL AGGREGATE GENII AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG 7 POLICY X PRO ,IECT LOC A AUTOMOBILE X LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 04LAS55212 12/31/2004 12/31/2005 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ GAR AGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ $ DEDUCTIBLE RETENTION $ $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNE WEXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below 04LWS55213 12/31/2004 12/31/2005 WC STATU- X TORY LIMITS O ER E.L. EACH ACCIDENT $ 500,000 $ 500,000 E.L. DISEASE - EA EMPLOYEE E.L. DISEASE- POLICY LIMIT $ 500,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES /EXCLUSIONS ADDED BY ENDORSEMENT /SPECIAL PROVISIONS Re: Material Sales Contracts - Tracts 8 -3 and B -4 - Bells Flats Alaska Subdivision .1 f t2 - / L.. :3 ACORD CERTIFICA1OF LIABILITY INSURAt E p age 1 of 2 02/21/2005 PRODUCER Willis North America, Inc. 26 Century Blvd. P. 0. Box 305191 Nashville, TN 372305191 877- 945 -7378 - Regional Cert Center THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED 1 Brechan Enterprises, Inc. 2705 Mill Bay Road P.O. Box 1275 Kodiak, AK 99615 INSURER A: Alaska National Insurance Co. 38733 -000 INSURER B: INSURER C: INSURER D: INSURER E: COVERAGES CERTIFICATE HOLDER CANCFI 1 AT1ON Kodiak Island Borough 710 MB Bay Road Kodiak, AK 99615 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENT/M ACORD25(2001/08) Co11:1223502 Tp1:344303 Cer :5481365 © ACORD CORPORATION 1988 710 Mill Bay JO Kodiak, Alaska 615 Phone (907) 486 -9301 Fax (907) 486 -9374 E -mail: djcnsen @kib.co.kodiak.ak.us October 19, 2000 Final Finding and Decision Extension of Material Sales Contract Brechan Enterprises, Inc. Tract's B -3 and B -4, Bells Flats Subdivision Requested Action: Brechan Enterprises Inc. has submitted a request to amend the existing Material Sales Contract with the Kodiak Island Borough by adding 5 years to the contract generating a new termination date of June 30, 2007. Legal Authority: This action is taken pursuant to authority granted under AS 29.20.500 and KIB 2.20.030 J. 2. and by extension the Material Sales Contract Section 5 Option to Renew) Discussion: In response to the applicant's request, a compliance review of the contract, case file and property was conducted. The existing contract is in force and the Kodiak Island Borough cannot unreasonably deny the applicants request. Pertinent Issues: As part of the review it was found that the amendment to the Jease illegally exempted the taxable possessory interest in the property in violation of AS 29.45.030 and must be deleted. It is important to point out that the basis and logic for the exemption still applies, in that at the time of bidding there was no notice to the bidders that the property would be subject to possessory interest property taxes except for improvements. Logic dictates that the bid price of $5,000 per tract per annum would have been affected if the property tax liability was known. I think an appropriate solution to this problem would be credit the annual payment for the amount of taxes paid pertains to the taxable interest in the land. 5. Option to Renew. This contract may be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 2 KIB Resolution No. 89 -32 -R Passed and Approved 7/6/89. _ __ . _ .__. __ ,_..:_, ..._ AMM.,V ,{1I. fAY mitt he assessed. levied. and collected as provided in 081111111M1 1.l) VC moo Limn Lu wua 44l •W• • Findings: In order to fully comply with the agreement and State Law, the attached amendment will need to be completed clarifying the treatment of property taxes and extending the Contract term. The Contractor is in full compliance with the Agreement. Cam • I c i c i O Pat Carlson, Date Assessor -Lands Manager, Kodiak Island Borough I, the undersigned, have reviewed the application, case file and the property and find the applicant is in compliance with the applicable Borough ordinances regarding zoning and permitting. A 9/ Qc iq, 07)-e Bob Scholze, Date Acting Community Development Director, Kodiak Island Borough I, the undersigned, have reviewed KIB's financial records of the applicant pertaining to the contract payments and royalty fees pertaining to this property and find that there are no outstanding financial liabilities and the required bonding is in force. tbsleA )z4 Karleton Short, Finance Director, Kodiak Island Borough Final Decision: The administrative findings presented above have been reviewed and considered. A review of the case file and a physical inspection of the facility has been conducted and the applicant has been found in full compliance with the existing material sales contract. The following amendments are incorporated by agreement of the parties as authorized by Section 31 of the Agreement. Pursuant to the authority granted me I hereby approve an extension of the existing material sales contract until June 30, 2007. David Jensen Manager, K d Borough Qd X3 4 Z90V Date Date AMENDMENT, is a 6 day of , by and between the KODIAK ISLAND BORO "KIB" and BRECHAN ENTERP R .I`J�' INC., `BEI": WHEREAS, the contract entered into ' between the p an did not make provisions for the payment of real property taxes assessed or WHEREAS, the parties agreed to an amendment to the contract on Sept. '7, 1984; and, WHEREAS, the method used for dealing with property taxes in that amendment does with State Law, which requires the payment of property taxes and does not allow not comply in real property; and, KIB the legal authority to exempt possessory interests pursuant to the WHEREAS, BEI requests the option to renew for an additional 5 years p agreement, NOW, THEREFORE, in consideration of the the receipt and of the parties hereto, and for other good and valuabl e consider which are hereby expressly acknowledged, the t � Jul 7y1 and amended September that Paragraph 6 of the Material Sales Contract July 1984, shall be amended as follows: 6. nnual T>,, (a) An annual use fee will be paid to KIB BIM on each anniversary data by occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $5,000 and resulted from competitive bidding on June 24, 1982. No refund will be made to BEI for any portion of a year remaining if this i contract oilar for dollar or for the cancelled. (b) The annual use fee of $5,000 will of property taxes paid on the premises during the calendar year assessed against BEI's possessory interest in KIB's land if the annual use fee is timely paid in full. If BEI does not timely pay in full this section does not apply and the annual fee of $5,000 ill be due in addition to the property taxes lawfully assessed against FURTHER: compliance with all provisions of the BEI acting in good faith is in complete comp agreement and pursuant to Article 5 of the agree ment a timely request for renewal of the Article 4 of the Material option for extension having been received, parties agree Sales Contract dated July 7, 1982 and amended follows: 7, 1984 and further amended by this document shall be further amended 4. Teen. The term of this contract is twenty five (25) years, beginning on July 1, 1982, and ending on June 30, 2007, (the balance of this section remains in force and unchanged). IN WITNESS WHEROF, the parties have executed this Amendment to the Material Sales Contract the day and year first written above. CONTRACTOR: I.CHAN ENTERPRIS , INC. Michael R. Martin, President STATE OF ALASKA THIRD JUDICIAL DISTRICT THIRD JUDICIAL DISTRICT } } } } } } ss: THIS IS TO CERTIFY that on the day of before me, the undersigned, a Notary Public in c fer -tire State of Alaska, duly commissioned and sworn as such, personally appeared t\a:ta Manager of the KODIAK ISLAND BOROUGH, a Municipal Corporation, and known to me to be the person who executed the within Amendment to the Material Sales Contract on behalf of the Municipal Corporation herein named, and acknowledged to me that the same was signed as a free act and deed of said Municipal Corporation for the uses and purposes therein stated and pursuant to its ordinances or a resolution of its Assembly. WITNESS ,, __ I d and notarial seal the $ and yerst ritten above. I ss: THIS IS TO CERTIFY that on ther2CM day of 321 , 2000, before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared 1`c� , known by me to be the President of Brechan Enterprises Inc., a corporation, and known to me to be the person who executed the within Amendment to the Material Sales Contract on behalf of the corporation herein named, and acknowledged to me that the same was signed as a free act and deed of said corporation for the uses and purposes therein stated and pursuant to its Bylaws or a resolution of its Board of Directors. WITNESS my hand and notarial seal the day and year first ritten above. Notary Public in an for Alaska My commission expires 94 -dov-- OCMOL. , 2000, Notary Publi in and for Alaska , to me known to be the Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and Aleutian Materials, Inc., hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. In accordance with Title 18, Real Property, of the Kodiak Island Borough Code and based on the condition of KIB Resolution No. 89 -32 -R, the Owner hereby grants to the Contractor the right to enter upon Tract BB2, Bells Flats Alaska Subdivision, hereinafter premises, which contains a total of approximately 19.72 acres, for the purpose of extracting, remanufacturing, and removing gravel resources. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel, and operation of all equipment and machinery required for the associated with extraction. 3. Gravel Remanufacturing. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete, and operation of all equipment and machinery required for and associated with remanufacturing. Contractor may not maintain on the premises any equipment or other material not related to gravel extraction or remanufacturing. 4. Term. The term of this contract is thirteen (13) years, beginning on July 1, 1989, and ending on June 30. 2002, or until the gravel resource-1s extracted, whi —Tee,* - -- -- r' e Contractor may, it in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or • • 5. Option to Renew. This contract may be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ 5.000,00 and resulted from competitive public bidding on June 24 , 1982. No refund will be made to the Contractor for any portion of a year remaining if this contract is terminated or cancelled. 7. Royalty Rate. The Owner hereby establishes a royalty rate of $0.85 per cubic yard for materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish on an annual basis, the minimum unit price for materials to be sold. The Contractor will reimburse the Owner for excavated materials upon receipt of a billing from the Owner, which shall be not less than annually during the term of the contract. Each new annual rate shall apply to the materials excavated during each twelve -month period established by Section 6. 8. Volume Determination. In accordance with Section 18.60.040 of the Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume determinations for excavated materials. The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The Contractor's measurements will be submitted to the Owner on an annual basis and not less than thirty (30) days prior to the anniversary date of this contract. All measurements shall be in units of cubic yards. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B -1, B -2, B -3, and B -4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A. • • more than one hundred (100) feet shall be adjacent to the area to be excavated. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the cleared portion of the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2 :1) side slopes or flatter, to water's edge, shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty -five (25) feet below grade. e. Brush Removal. All brush shall be removed from not less than two - thirds (2/3) of the property described in Section 1 above before any gravel is extracted. Brush shall be burned or removed from the premises and may not be placed in the excavated area or buffer area on the premises. f. Trees. No trees, stumps, or parts of trees shall be placed in the excavated area or buffer area on the premises. g. Access. Ingress and egress shall be limited to one point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10:00 p.m. daily. 12. Haul Road. For the purposes of this contract, the designated haul roads area are as follows: a. From Tracts B -1, B -2, B -3, and B -4A to Chiniak Road via Middle Bay Drive to Bells Flats Road, Bells Flats Road to Sargent Creek Road, and Sargent Creek Road to Chiniak Road. b. From Chiniak Road to Tract B -1, B -2, B -3, and B -4A via Sargent Creek Road to Middle Bay Drive and Middle Bay Drive to Tracts B -1, B -2, B -3, and B -4A. • • 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall constitute default. 15. License. Contractor shall possess a valid State of Alaska contractor's license. Failure to possess said license shall constitute default. 16. Insurance Required. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept in force for the mutual benefit of Owner and Contractor, comprehensive broad from general public liability insurance against claims and liability for personal injury, death or property damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death of any one person, at least $1,000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this contract shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt, or with certificates evidencing the insurance. Before commencement of the contract, Contractor shall furnish Owner with binders representing all insurance required by this contract. If Contractor fails or refuses to procure or to maintain insurance as • • due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to construct or otherwise make new improvements on any part or all of the premises, to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or part, and to modify or change the contour or grade, or both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements, Within ninety (90) days after expiration of this contract, Contractor shall at his expense, remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Owner and may be sold at auction, leased as part of the premises, or otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against any claims, liabilities, or losses of any type arising out of performance pursuant to this contract together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, settling, defending and otherwise protecting against such claims. In accordance with Section 28 herein, Owner shall promptly notify the Contractor of any loss or claim, and shall tender defense of such claim to Contractor prior to negotiating, settling, or defending such claim. • • and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free access to the premises at all reasonable times for the purpose of inspecting the conditions thereof in order to exercise any right or power reserved to Owner under the terms and provision of this contract. 24. Default. Each of the following events shall be a default by Contractor and a breach of this contract: a. Failure to make any payment as provided in Sections 6 and 7 or this contract, or of any other sum required by this contract to be paid by the Contractor, or failure to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor to attachment, execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operation on the premises for any reason, including, but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution , or arrangement on account of, or to prevent bankruptcy or insolvency. e. The failure of the Contractor to occupy the land or to perform according to the terms of this contract within twelve months of the execution of this contract, or failure within any two (2) year period to extract, process, and remove a substantial quantity of gravel from the premises. If the alleged default is non - payment of annual use fee, roynity rate c,r 25. Owner's Remedies on Default. If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in the alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the premises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good condition, and Owner may re -enter and take possession of the premises and all remaining improvements and eject all parties in possession, or eject some and not others or eject none. b. If this agreement is referred by Owner to an attorney upon any default by Contractor, Contractor shall pay Owner the latter's reasonable attorney fees, regardless of whether or not nay suit or action is commenced. 26. Non- Waiver. No failure on the part of the Owner to enforce any covenant or provision herein contained, nor any waiver of any right hereunder by the Owner shall discharge or invalidate such covenants or affect the right of the Owner to enforce same in the event of any subsequent breach or default. 27. Construction. The obligations of the undersigned parties are joint and several, and wherever the context hereof so admits or requires, the singular shall include the plural. The covenants, terms and conditions of this agreement shall extend to and be binding upon and insure to the benefit of the heirs, executors, administrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail ad•resse• as follows: • • Owner Contractor Borough Mayor Mr. Richard C. Egge, President 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare a mutually acceptable substitute provision for any provision stricken from this contract due to illegality, and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provision shall remain in full force and effect as though the stricken provisions had never appeared in this contract. Each provision of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for the State of Alaska in Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. • ATTE,BT WITNk fS' �Y • • OWNER Kodiak Island Borough By: CONTRACTOR Aleutian By: nc. / EXHIBIT A . ,, r /.' 5 • a • Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 MATERIAL SALES CONTRACT This contract is between the Kodiak Island Borough, hereinafter Owner, and Aleutian Materials, Inc., hereinafter Contractor. In consideration of the mutual covenants herein, the parties agree as follows: 1. In accordance with Title 18, Real Property, of the Kodiak Island Borough Code and based on the condition of KIB Resolution No. 89 -32 -R, the Owner hereby grants to the Contractor the right to enter upon Tract B-1, Bells Flats Alaska Subdivision, hereinafter premises, which contains a total of approximately 19.95 acres, for the purpose of extracting, remanufacturing, and removing gravel resources. 2. Gravel Extraction. For the purposes of this contract, gravel extraction means the removal and transporting of gravel, and operation of all equipment and machinery required for the associated with extraction. 3. Gravel Remanufacturing. For the purposes of this contract, gravel remanufacturing means crushing, screening, washing and the use of gravel in manufacturing processes to create road asphalt and concrete, and operation of all equipment and machinery required for and associated with remanufacturing. Contractor may not maintain on the premises any equipment or other material not related to gravel extraction or remanufacturing. 4. Term. The term of this contract is thirteen (13) years, beginning on July 1. 1989, and ending on June 30, 2002, or until the gravel resource is extracted, whichever occurs first. The Contractor may, if in full compliance with the provisions of the development plan and the performance standards herein, request early termination of this contract by the Owner for the following reasons: A. Exhaustion of the gravel resource; or • • 5. Option to Renew. This contract may be renewed for one -five (5) year period. Said option to renew can be requested by written notice to the Owner not less than sixty (60) days prior to the expiration date specified in Section 4 above. 6. Annual Use Fee. An annual use fee will be paid to the Owner by the Contractor on each anniversary date occurring during the term of the contract. The annual use fee for the tract of land described in Section 1 above is $ 5.000,00 and resulted from competitive public bidding on June 24 , 1982. No refund will be made to the Contractor for any portion of a year remaining if this contract is terminated or cancelled. 7. Royalty Rate. The Owner hereby establishes a royalty rate of $0.85 per cubic yard for materials excavated. In accordance with Section 18.60.060 of Borough Code, the Owner will review and establish on an annual basis, the minimum unit price for materials to be sold. The Contractor will reimburse the Owner for excavated materials upon receipt of a billing from the Owner, which shall be not less than annually during the term of the contract. Each new annual rate shall apply to the materials excavated during each twelve -month period established by Section 6. 8. Volume ,Determination. In accordance with Section 18.60.040 of the Borough Code, the Contractor shall bear the cost of volume determinations for excavated materials. The Owner may make additional volume determinations for excavated materials. The Owner may make additional volume measurements to verify the accuracy of the information provided by the Contractor. The Contractor's measurements will be submitted to the Owner on an annual basis and not less than thirty (30) days prior to the anniversary date of this contract. All measurements shall be in units of cubic yards. 9. Development Plan. The Contractor shall accomplish gravel extraction in accordance with all provisions of this contract and the development plan approved for Tracts B -1, B -2, B -3, and B -4A, by the Owner, on March 4, 1982, a copy of which is attached as Exhibit A. • • more than one hundred (100) feet shall be adjacent to the area to be excavated. b. Overburden. Overburden shall be stripped, stockpiled, placed, and levelled in the cleared portion of the designated buffer area to create a berm for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, the berm will be removed and spread evenly over cleared portions of the buffer area. c. Side Slopes. Two to one (2:1) side slopes or flatter, to water's edge, shall be accomplished prior to contract termination and shall begin at the excavation side of the designated buffer area. d. Minimum Extraction Depth. Gravel extraction shall be accomplished to a minimum depth of twenty -five (25) feet below grade. e. Brush Removal. All brush shall be removed from not less than two- thirds (2/3) of the property described in Section 1 above before any gravel is extracted. Brush shall be burned or removed from the premises and may not be placed in the excavated area or buffer area on the premises. f. Trees. No trees, stumps, or parts of trees shall be placed in the excavated area or buffer area on the premises. g. Access. Ingress and egress shall be limited to one point on Middle Bay Drive. 11. Hours of Operation. Hours of operation shall be limited to 6:00 a.m. to 10 :00 p.m. daily. 12. Haul Road. For the purposes of this contract, the designated haul roads area are as follows: a. From Tracts B -1, B -2, B -3, and B -4A to Chiniak Road via Middle Bay Drive to Bells Flats Road, Bells Flats Road to Sargent Creek Road, and Sargent Creek Road to Chiniak Road. b. From Chiniak Road to Tract B -1, B -2, B -3, and B -4A via Sargent Creek Road to Middle Bay Drive and Middle Bay Drive to Tracts B -1, B -2, B -3, and B -4A. • • 14. Performance Bond. A performance bond in the amount of ten thousand dollars ($10,000.00), payable to the Owner, shall be obtained by the Contractor and renewed annually prior to the anniversary date of this contract. Failure to maintain said performance bond shall constitute default. 15. License. Contractor shall possess a valid State of Alaska contractor's license. Failure to possess said license shall constitute default. 16. Insurance Required. Throughout the term, at Contractor's sole cost and expense, Contractor shall keep or cause to be kept in force for the mutual benefit of Owner and Contractor, comprehensive broad from general public liability insurance against claims and liability for personal injury, death or property damage arising from the use, occupancy, disuse, or condition of the premises, improvements, or adjoining areas or ways, providing protection of at least $500,000.00 for bodily injury or death of any one person, at least $1,000,000.00 for any one accident or occurrence, and at least $500,000.00 for property damage. All insurance required by this contract shall be carried only by responsible insurance companies licensed to do business in the State of Alaska. All such policies shall be nonassessable and shall contain language to the effect that (1) any loss shall be payable notwithstanding any act or negligence of Owner that might otherwise result in a forfeiture of the insurance; (2) the insurer waives the right of subrogation against the Owner; (3) the policies are primary and noncontributing with any insurance that may be carried by Owner; and (4) they cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to Owner. Contractor shall furnish Owner with copies of all such policies promptly on receipt, or with certificates evidencing the insurance, Before commencement of the contract, Contractor shall furnish Owner with binders representing all insurance required by this contract. If Contractor fails or refuses to procure or to maintain insurance as • • due from Contractor with interest at eight percent (8 %) per year, to be paid on the first day of the month following the date on which the premiums, stating the amounts paid and the names of the insurers, and interest shall run from the date of the notice. 17. Assignability. This contract cannot be assigned without the Owner's approval. 18. Review. Contract performance will be reviewed at least annually or as necessary by the Owner. 19. Improvements. At any time and from time to time during the term, Contractor may, but, except as provided in the development plan, is not obliged to construct or otherwise make new improvements on any part or all of the premises, to demolish, remove, replace, alter, relocate, reconstruct or add to any existing improvements in whole or part, and to modify or change the contour or grade, or both, of the land, provided Contractor is not then in default under any term or condition of this contract. 20. Removal of Improvements. Within ninety (90) days after expiration of this contract, Contractor shall at his expense, remove all improvements, including fixtures. Any such improvements not so removed shall become the property of the Owner and may be sold at auction, leased as part of the premises, or otherwise disposed of, in any event without liability on the part of the Owner. The Notice requirements of Section 28 herein apply to the Owner. 21. Indemnity. Contractor shall defend and indemnify Owner against any claims, liabilities, or losses of any type arising out of performance pursuant to this contract together with reasonable attorney's fees and all costs and expenses incurred by Owner in negotiating, settling, defending and otherwise protecting against such claims. In accordance with Section 28 herein, Owner shall promptly notify the Contractor of any loss or claim, and shall tender defense of such claim to Contractor prior to negotiating, settling, or defending such claim. • • and bodies having or claiming jurisdiction and their respective departments and officials; and with the requirements of all insurance companies insuring all or part of the premises. 23. Owner Access. Owner shall have free access to the premises at all reasonable times for the purpose of inspecting the conditions thereof in order to exercise any right or power reserved to Owner under the terms and provision of this contract. 24. pefault. Each of the following events shall be a default by Contractor and a breach of this contract; a. Failure to make any payment as provided in Sections 6 and 7 or this contract, or of any other sum required by this contract to be paid by the Contractor, or failure to perform as required or conditioned by any other covenant or condition of this contract. b. The subjection of any right or interest of Contractor to attachment, execution, or to seizure under legal process. c. The appointment of a receiver to take possession of the improvements or of Contractor's operation on the premises for any reason, including, but not limited to, assignment for benefit of creditors or voluntary bankruptcy proceedings. d. An assignment by Contractor for the benefit of creditors or the filing of a voluntary or involuntary petition by or against Contractor under any law for the purpose of adjudicating Contractor a bankrupt; or for extending time for payment, adjustment or satisfaction of Contractor's liabilities; or for reorganization, dissolution , or arrangement on account of, or to prevent bankruptcy or insolvency. e. The failure of the Contractor to occupy the land or to perform according to the terms of this contract within twelve months of the execution of this contract, or failure within any two (2) year period to extract, process, and remove a substantial quantity of gravel from the premises. If the alleged default is non - payment of annual use fee, royalty rate or follows: • • 25. Owner's Remedies on Default. If any alleged default by Contractor remains uncured after notice and the period for cure allowed under this contract, Owner has the following remedies in addition to all other rights and remedies provided by law or equity, to which Owner may resort cumulatively or in the alternative: a. Owner may at Owner's election terminate this contract by giving notice of termination. On the giving of the notice, all Contractor's rights in the premises and in all improvements shall terminate. Promptly after notice of termination, Contractor shall surrender and vacate the premises and all other improvements in good condition, and Owner may re -enter and take possession of the premises and all remaining improvements and eject all parties in possession, or eject some and not others or eject none. b. If this agreement is referred by Owner to an attorney upon any default by Contractor, Contractor shall pay Owner the latter's reasonable attorney fees, regardless of whether or not nay suit or action is commenced. 26. Non- Waiver. No failure on the part of the Owner to enforce any covenant or provision herein contained, nor any waiver of any right hereunder by the Owner shall discharge or invalidate such covenants or affect the right of the Owner to enforce same in the event of any subsequent breach or default. 27. Construction. The obligations of the undersigned parties are joint and several, and wherever the context hereof so admits or requires, the singular shall include the plural. The covenants, terms and conditions of this agreement shall extend to and be binding upon and insure to the benefit of the heirs, executors, administrators, and assigns of the parties hereto. 28. Notice. Any notice provided for hereunder shall be given in writing and transmitted by personal delivery or prepaid first class mail addressed as Owner Contractor Borough Mayor Mr, Richard C. Egge, President t 29. Violation of Law. Any provision of this contract in violation of any law or Ordinance shall not invalidate this contract, and any unlawful provision shall be deemed separate and apart from all other provisions herein and stricken from this contract. The parties shall attempt to prepare a mutually acceptable substitute provision for any provision stricken from this contract due to illegality, and shall subsequently incorporate the substituted provision by a written modification of this contract. All remaining terms and provision shall remain in full force and effect as though the stricken provisions had never appeared in this contract. Each provision of this contract shall be valid and enforced to the fullest extent permitted by law. Neither party shall be required to indemnify the other for any damages or losses resulting from a determination that a contract provision is unlawful. 30. Venue. Any civil action arising from this contract shall be brought in the Superior Court, Third Judicial District, for the State of Alaska in Kodiak. The law of the State of Alaska shall govern the rights and duties of the parties under this contract. 31. Amendment. The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. WIT; ^u., : Cf • rk � OWNER 'Kodiak Island Borough By: CONTRACTOR Aleutian ttate By: • / / �... 'c • Tx. 1O.07 AcRr 4. • • • 7 8 -//A `. Zs! 64 4ci s `. / / / ew\ r. ` ii. 1 , C.) ••• ■ I 4, TX. 15-1 s , Cr4 19.4 .1 'Wife . . EXHIBIT A 19,72 �4c# 6 :f -1y . / r �G� lC ti /• ' .ry • 9 6C Ga 7R. E. • , CALL TO ORDER Commissioners Present David King — Chair Gary Carver Brent Watkins Casey Janz Bill Kersch Gary Juenger Vacant May 7, 2007 KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION REGULAR MEETING APRIL 18, 2007 CONTINUED ON MAY 7, 2007 MINUTES The continued regular meeting of the Planning and Zoning Commission was called to order at 6:10 p.m. by CHAIR KING on May 7, 2007 in the Borough Assembly Chambers. ROLL CALL X X X X X X Excused Absent Others Present Duane Dvorak, Acting Director Community Development Dept. Sheila Smith, Secretary Community Development Dept. A quorum was established. COMMISSIONER CARVER asked the commission to excuse him from this case due to a possible conflict of interest. The commission excused COMMISSIONER CARVER. CHAIR KING stated there have been comments that he has a conflict on interest. KING said he does not work for Brechan and hasn't been promised any offer of employment. He said if the commission feels he should step down, then he will. The commission does not feel there is a conflict of interest: therefore, he should not be excused. PUBLIC HEARINGS A. Case 07 -021. Request for a Title 18 Land Disposal, according to KIBC 18.20, 18.40, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 18.40, and a request for material sale per KIBC 18.60.) Dvorak reported a letter was distributed from ADF &G that was added to the packet, and the borough attorney was consulted on this case. Dvorak reviewed some codes with the commission. During commission's discussion information was requested from Brechan. Mike Martin answered the commission's questions. Jim Graham spoke regarding the process of opening new pits. COMMISSIONER WATKfNS MOVED TO AMEND stipulation 6 to read "The lease shall be for a period of 5 years with two 3 year renewals at the discretion of the Assembly." COMMISSIONER CASEY JANZ SECONDED the motion, and it CARRIED 5 -0. P & Z Commission Meeting Minutes Page 1 of 4 1 Discussion of stipulation 1. COMMISSIONER KERSCH MOVED TO AMEND stipulation 1 to use staff's recommended stipulation 3. COMMISSIONER JUENGER SECONDED the motion, and it CARRIED 5 -0. Discussion of stipulation 7. COMMISSIONER JUENGER MOVED TO ADOPT staff's recommended stipulation 7 striking the words "early right of entry" and substituting "temporary lease" with the rest of the requirement remaining the same. COMMISSIONER WATKINS SECONDED the motion, and it CARRIED 5 -0. Discussion of stipulation 2. COMMISSIONER CASEY JANZ MOVED to strike stipulation 2. The motion was SECONDED by COMMISSIONER JUENGER, and it CARRIED 5 -0. Discussion of stipulation 3. COMMISSIONER JUENGER MOVED TO ACCEPT stipulation 3 on the motion before us. The motion was SECONDED by COMMISSIONER KERSCH. Discussion of stipulation 5. Chris Lynch stated there are other agencies available to do hydrological studies. COMMISSIONER WATKINS MOVED TO AMEND stipulation 5 read "A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease." The motion was SECONDED by COMMISSIONER CASEY JANZ, and it CARRIED 5 -0. Discussion on stipulation 8. COMMISSIONER WATKINS MOVED to strike stipulation 8. The motion was SECONDED by COMMISSIONER KERSCH, and it CARRIED 5 -0. Discussion of stipulation 11. Diane (inaudible and didn't sign in) speaking against moving the crusher to the farthest end. Mike Martin (inaudible). COMMISSIONER WATKINS MOVED TO AMEND stipulation 11 to read "All prudent efforts shall be used to minimize the noise level during operations. COMMISSIONER JANZ SECONDED the motion, and it CARRIED 5 -0. Amended Main Motion from the April 18` meeting NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION THAT: Section 1: The Kodiak Island Borough Planning & Zoning Commission, in accordance with Title 18 of the Kodiak Island Borough Code, recommends the approval of a lease disposal by the Kodiak Island Borough Assembly, for fair market value of approximately 84.4 acres comprising of Tracts B -1, B -2, B -3, and B -4A Bells Flats Subdivision subject to certain stipulations. May 7, 2007 P & Z Commission Meeting Minutes Page 2 of 4 Section 2: Stipulations 1. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation of the lease area at the time resource extraction activities are to be concluded. The process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 2. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 3. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through lease negotiation. 4. A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease. 5. The lease shall be for a period of five (5) years with two three (3) year renewals at the discretion of the Assembly. 6. The Assembly may permit a "temporary lease" of the lease area, under the provisions of the existing lease agreement, for a period not to exceed six months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 7. Hours of operation (per Brechan Enterprises, Inc. letter March 1, 2007) shall be lam to 7pm Monday through Saturday, with no work on Sundays. 8. The buffer zones laid out in the Brechan letter dated March 1, 2007, shall be maintained and kept in a topography that blends smoothly into the surrounding area. 9. All prudent efforts shall be used to minimize the noise level during operations. The question was called on the amended motion, and it CARRIED 5 -0. OLD BUSINESS There was no old business. NEW BUSINESS A) Code Revision — Amend Business Zoning District to allow Bed & Breakfast Use After a brief discussion, it was the consensus of the commission not to pursue the Bed & Breakfast revisions. COMMUNICATIONS A) Letter of Courtesy & Advisory to Lesnoi, Inc. dated March 20, 2007 Dvorak explained they had received a report of a squatter living on Lesnoi land at Mayflower Beach, so this Letter of Courtesy & Advisory was sent to Lesnoi making them aware of it. May 7, 2007 P & Z Commission Meeting Minutes Page 3 of 4 COMMISSIONER CARVER MOVED TO ACCEPT communications as submitted. COMMISSIONER JANZ SECONDED the motion, and it CARRIED by unanimous voice vote. REPORTS A) Meeting schedule: • May 9, 2007 work session at 7:30 p.m. in the KIB Conference Room • May 16, 2007 regular meeting at 7:30 p.m. in the Assembly Chambers B) Minutes of Other Meeting: • January 8, 2007 Gravel Task Force Minutes • January 9, 2007 Parks & Recreation Committee Minutes • January 13, 2007 Parks & Recreation Committee Minutes • February 27, 2007 Parks & Recreation Committee Minutes AUDIENCE COMMENTS Randall Borgeman requested the commission reconsider Case 07 -020. COMMISSIONER COMMENTS COMMISSIONER JANZ thanked the commission, staff, and public for working through this. COMMISSIONER JUENGER thanked staff for their continued service. COMMISSIONER WATKINS thanked everyone for coming back tonight. ADJOURNMENT COMMISSIONER CARVER MOVED to adjourn. The motion was SECONDED by COMMISSIONER KERSCH, and it CARRIED by unanimous voice vote. CHAIR FRIEND ADJOURNED the regular meeting at 8:18 p.m. ATTEST By: Sheila Smith, Secretary Community Development Department DATE APPROVED: May 16, 2007 May 7, 2007 KODIAK ISLAND BOROUGH PLANNING AND ZONING COMMISSION By: Dave King, Chair P & Z Commission Meeting Minutes Page 4 of 4 Mr. Mike Martin 2705 Mill Bay Road Kodiak, AK 99615 Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9363 Fax (907) 486 -9396 May 15, 2007 Re: Case 07 -021. Request a Title 18 Land Disposal, according to KIBC 18.20, 18.40, and 18.60, to consider a request to lease borough land for fair market value for the purposes of resource extraction processing and stockpiling. (This request involves both a request to lease the land, per KIBC 16.40, and a request for material sale per KIBC 18.60.) Dear Mr. Martin: The Kodiak Island Borough Planning and Zoning Commission at their April 18, 2007 approved the above referenced disposal of Borough land with a recommendation to the Assembly. Findings of fact in support of this decision is as follows: 1. The proposed lease recommendation, subject to the stipulations, gives due deference to the 2007 Womens Bay Comprehensive Plan and the reasonable concerns expressed by the Womens Bay residents through the public hearing process. 2. The need for continued hydrologic management and reclamation of the site favors the continued lease of the B Tracts to the party most responsible for the current disposition of the site, Brechan Enterprises. 3. The site requested for review has previously been determined to be surplus to the borough's needs. Future designation of the site in the 2007 Womens Bay Comprehensive Plan is intended to be for recreational use or residential development. The commission's recommendation and other packet materials will be forwarded to the Assembly. Please contact this office for information on tentative scheduling arrangements and progress reports. The commission's recommendation includes the following stipulations: 1. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation Please feel free to contact me at 486 -9363 if you should have any questions regarding the determin. on. of the lease area at the time resource extraction activities are to be concluded. The process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 2. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 3. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through lease negotiation. 4. A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease. 5. The lease shall be for a period of five (5) years with two three (3) year renewals at the discretion of the Assembly. 6. The Assembly may permit a "temporary lease" of the lease area, under the provisions of the existing lease agreement, for a period not to exceed six months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 7. Hours of operation (per Brechan Enterprises, Inc. letter March 1, 2007) shall be lam to 7pm Monday through Saturday, with no work on Sundays. 8. The buffer zones laid out in the Brechan letter dated March 1, 2007, shall be maintained and kept in a topography that blends smoothly into the surrounding area. 9. All prudent efforts shall be used to minimize the noise level during operations. =Du. - - 1 orak, Acting Director Community Development Department Page 2 of 2 Bay View Drive Service District Board Meeting of March 23, 2007 The meeting was called to order by Chairman Reed Oswalt at 6:20 PM at Fly By Coffee. Present were Reed Oswalt, Dawn Lea Black, Andy Teuber, and Fred Roberts. Fred Roberts moved that we adopt the same budget as last year. The question was called. The vote was unanimously for this budget adoption. The meeting was adjourned by Reed Oswalt at 6:30 P.M. IVECEEIWE MAY - 72007 BOROUGH CLERK'S OFFICE Committee Members Present Absent Excused Others Present Mike Anderson X Martin Lydick Tom Abell X Community Development Gary Carver X Sheila Smith Dave King X Community Development Bill Oliver X Andy Teuber X Thomas Trosvig X Vacant CALL TO ORDER The meeting of the Gravel Task Force Committee was called to order at 5:40 p.m. by CHAIR LYDICK ON April 2, 2007 in the KIB conference room. ROLL CALL A quorum was established. APPROVAL OF AGENDA COMMITTEE MEMBER CARVER MOVED TO APPROVE the agenda as presented. The motion was SECONDED by COMMITTEE MEMBER TROSVIG, and it CARRIED by unanimous voice vote. APPROVAL OF MINUTES COMMITTEE MEMBER CARVER MOVED TO APPROVE the minutes from January 8, 2007 as presented. The motion was SECONDED by COMMITTEE MEMBER TROSVIG, and it CARRIED by unanimous voice vote. OLD BUSINESS NEW BUSINESS KODIAK ISLAND BOROUGH GRAVEL TASK FORCE COMMITTEE REGULAR MEETING -APRIL 2, 2007 MINUTES L5 C E G U (S MAY 1 1 2007 BOROUGH CLERK'S OFFICE A. Salonie Creek Exploration Lydick reported items A and B are just a reiteration of our potential sites. Salonie Creek hasn't changed in the intervening months. USS 2539 Lot 7 is the parcel next to the fairgrounds. Lydick stated he sent a letter to the Coast Guard and we received verbal confirmation and it received a favorable review in California and locally. They do have some concerns with fish habitat and wildlife issues. Lydick hasn't been able to identify any particular location we might want to dig and was hoping that could be identified tonight. He also hasn't been able to identify that area at the head of that stream but that is the one the Coast Guard believe has a spawning population in it. Lydick also reported the State is looking at trying to locate gravel and fill sources for their airport project to extend the runways. Discussion of items A and B. April 2, 2007 Gravel Task Force Meeting Minutes Page 1 of 3 B. United States Survey 2539 Lot 7 C. Policy Recommendations A discussion of policies. COMMUNICATIONS i) Draft Request for Quotes Discussion of the RFQ. It was the consensus these changes be made: • Page 4 of 5, Part 1, should be Gravel Exploration and Assaying Services. • Page 4 of 5, Part 1, should be 3 weeks for response deadline. • Page 4 of 5, Part 1, should be 2 weeks from Notice of Award for Scheduled Service Start Date • Page 4 of 5, Part 2, paragraph 1, take the Gravel Task Force out so it reads "The purpose of this Request for Quotes is to obtain professional services to assist the Kodiak Island Borough in documenting ..." • Page 4 of 5, Part 2, paragraph 1; take the word continued out so it reads "Two sites have been identified by the Gravel Task Force for investigation." • Page 5 of 5, Part 2, paragraph 1, change the sentence to read "Located approximately 10 miles southwest of the City of Kodiak this site (USCG) is easily accessed via the Chiniak Highway and is traversed by a service road." • Page 5 of 5, paragraphl under Service Level Required, the first sentence should read "Each site will require the contractor to excavate six test holes to a depth of twenty feet." • If the manager says he wants the bid to contain the cost of the tests then put in 3 samples per pit. If the manager says we will pay the bill then put in the contract that the cost of testing will be paid for by the Borough. If the Borough pays for the testing it will save the Borough a lot of money. It should be specified in the bid if contractor is bidding for the testing that we want abrasion, degradation, sulfate soundness, and sieve analysis testing done. • Page 5 of 5, paragraph 3 under Service Level Required, change the sentence so it reads "The contractor will submit prepared test samples to the Borough." • Page 5 of 5, strike the paragraph 4 under Service Level Required. • Bill Oliver will make a bid tab for a price per hole and testing a price per test. There will be a column for quantity and a unit price column and a total column. Quantity will be 1, unit price is $2400 so the total is $2400. Probably 2 mobilization and demobilization, 1 for each site. Test holes is a quantity of 12, then the unit price would be whatever you decide on, say $500 of the $6000 in total. Lab testing we would have 18 -36. We would specify the quantity numbers and they would put in unit price and total price. Specify mobilization to CG Tract site and mobilization to Salonie Creek. The mobilization will be more for Salonie Creek. April 2, 2007 Gravel Task Force Meeting Minutes Page 2 of 3 MEMBER CARVER stated on the map we should take a setback from this creek, about 300 feet, and from the road here at least as far as the pits, and he thinks we should dig here. Lydick stated he will get the RFQ reworked and email it to the members this week. REPORTS Meeting schedule: May 7, 2007 at 5:30 p.m. in the KIB conference room ADJOURNMENT MEMBER CARVER MOVED TO ADJOURN. The meeting adjourned at 7:00 p.m. ATTEST By: 'nne&Ora r'n Sheila Smith, Secretary Community Development Department DATE APPROVED: May 7, 2007 April 2, 2007 KODIAK ISLAND BOROUGH G' • VEL TASK • RCE COMMITTEE By: Ma in Lydi k - Chair Gravel Task Force Meeting Minutes Page 3 of 3 Meeting Started: 7:00 p.m. Public Comments: none Monashka Bay Road Service Area Bayside Fire Hall March 7, 2007 Roll Call: Randy Spivey, Dave Sundberg, Chaz Glagolich, Darlene Turner, and Drew DeVries are all present. ECEFUEn MAY 1 1 2007 [1. BOROUGH CLERK'S OFFICE Minutes: Randy makes motion to approve Feb. 28, 2007 minutes. Chaz seconds motion. Approved motion unanimously. Old Business: Holding Pond on Three Sisters — Tom Lance had planned on making a presentation of different solutions, but was unable to attend. This will be tabled until next meeting. New Business: a. Budget FY 2008: Chaz makes motion to approve Budget for FY 2008. Randy seconds. Approved unanimously. b. Assignment of Spring Tasks: It was agreed upon that instead of dividing these tasks into individual jobs, we would like to visit recurring problem areas and discover new ones together this spring. The walk -about is planned for the end of April or first part of May depending on weather. c. Road Maintenance Work Plan 2007: We are proceeding with the plan that is in place, which includes moving further down Marmot, the bottom of Three Sisters and the top of Mountain View. The top of Mountain View needs a larger culvert put in. The expense will be shared between the four property owners and the Service District. d. Road Signs: We are looking at buying five speed limit signs and five "Children at Play" signs and are waiting for a call back from the sign company. Each sign runs around twenty dollars and we should look into prices and acquiring the post/fittings for attachments. e. Amend Budget for Snow Removal FY 07: Dave makes motion to move ten thousand dollars from the fund balance to the Road Maintenance Budget to counteract the extensive snow removal for FY 07. Chaz seconds. Passes unanimously. 1 f. CIP list: The Borough Engineer, Bud, recommends the next step is to dig test holes with an engineer of our hire and get an estimate. Board Comments: Dave Sundberg states that he would like to see more than one contractor bid for MBRSD needs. Darlene Turner said that if there is any problem she would hope that residences and Board members would come to her and the rest of the Board. She thanked Bob Foy and the Board for their turn out and suggested everyone take a look at the Borough Web Page. Randy Spivey asked that residence with problems or suggestions, email or write to all Board members and not just one. Chaz Glagolich feels strongly that the Borough needs to do the right thing and looks forward to the Spring Walk Around. Already he has seen some fencing that possibly could be a potential problem with snow removal. Drew DeVries has heard of some overly protective dogs on Marmot and needs to do some more investigation. He is trying diligently to round up last spring's notes and documentation. Adjoupment: 7:50 p.m. Darlene ac-e1.4,4,.._ ' Date S' 3 President on hka Bay Road Service District Date C 757 Drew DeVfies Secretary/ Treasurer 2 CALL TO ORDER The regular meeting of the Parks & Recreation Committee was called to order at 7:OOp.m. by VICE CHAIR FOREMAN on April 24, 2007 in the KIB School District Conference Room. ROLL CALL Committee Members Mike Sirofchuck -Chair Hans Tschersich Pam Foreman Kevin Foster Jeff Huntley Patrick Saltonstall Andy Schroeder Cassandra Juenger Present X X X X X X III. APPROVAL OF AGENDA KODIAK ISLAND BOROUGH PARKS & RECREATION COMMIT REGULAR MEETING - APRIL 24, 200 i MINUTES Excused Absent X X Sheila Smith D Others Present MAY 1 1 2007 BOROUGH CLERK'S OFFICE Community Development Dept. Lori Demi Wayne Biessel Ian Fcilr�`` Chris L ch Roy Brown 4/24/2007 Parks & Recreation Committee Meeting Minutes Page 1 of 2 A quorum was established. COMMITTEE MEMBER FOSTER MOVED TO EXCUSE COMMITTEE MEMBERS JUENGER AND TSCHERSICH. The motion was SECONDED by COMMITTEE MEMBER SCHROEDER, and it CARRIED by unanimous voice vote. COMMITTEE MEMBER FOSTER MOVED TO APPROVE the agenda as presented. The motion was SECONDED by COMMITTEE MEMBER SALTONSTALL, and CARRIED by unanimous voice vote. MINUTES OF PREVIOUS MEETING Regular meeting of: • April 10, 2007 Parks & Recreation Committee Meeting Minutes COMMITTEE MEMBER HUNTLEY MOVED TO APPROVE the minutes as submitted. COMMITTEE MEMBER FOSTER SECONDED the motion, and it CARRIED by unanimous voice vote. AUDIENCE COMMENTS AND APPEARANCE REQUESTS There were no audience comments or appearance requests. OLD BUSINESS A) Mountain View, 2 Addition, Block 4, Lot 11 Tax Foreclosed Property SCHROEDER stated he went to look at this property. It's mucky wetlands and it's very steep. He doesn't think a trail could be built on it. It's swamp on the bottom of the Devil's Prong side and there is a 30° or 40° pitch up to the driveway. COMMITTEE MEMBER TSCHERSICH joined the meeting at 7:13 p.m. COMMITTEE MEMBER FOSTER MOVED to pass this on to the Planning and Zoning with the understanding that Parks and Recreation Committee looked at this piece as a potential interest for a trail, but at this time we don't believe it has one. COMMITTEE MEMBER SCHROEDER SECONDED the motion. The committee had a discussion of the property. The question was called, and it CARRIED by unanimous voice vote. NEW BUSINESS There was no new business. COMMUNICATIONS There were no communications. REPORTS A) Meeting schedule: • May 8, 2007 regular meeting at 7:00 p.m. in the KIB School District Conference Room. • May 22, 2007 regular meeting at 7:00 p.m. in the KIB School District Conference Room. VICE CHAIR FOREMAN reminded the committee that the P &Z review of the Draft Comprehensive Plan is on May 16 and she encouraged everyone to be there. There were no further reports. AUDIENCE COMMENTS There were no audience comments. COMMITTEE MEMBER'S COMMENTS There were no committee member's comments. ADJOURNMENT FOREMAN requested a motion to adjourn. COMMITTEE MEMBER HUNTLEY MOVED TO ADJOURN the regular meeting. The motion was SECONDED by COMMITTEE MEMBER FOSTER. The meeting adjourned at 7:21 p.m. ATTEST By: et S20, /0-Ag Sheila Smith, Secretary Community Development Department DATE APPROVED: May 8, 2007. 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A\c rQO v o V' P"TC∎‘ NOS\ At- o NZZCLbM•W)o C3 `2_1;:aaa\ 1 ?,s,m • tcy “Nvict 43 6/Z-- February 21, 2007 Mike Black, Director Local Government Assistance State of Alaska Department of Commerce, Community 550 W. 7 Avenue, Ste. 1770 Anchorage, AK 99501 -3510 Dear Mr. Black: Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9301 Fax (907) 486 -9374 E -mail: lwhiddonAlcib.co.kodiak.ak.us E C LS V JUN - 7 2007 D BOROUGH CLERK'S OFFICE & Economic Development KODIAK ISLAND BOROUGH CLERK'S OFFICE COPED TO: ASSEMBLY V MAYOR MANAGER V OTHER The Kodiak Island Borough ( "KIB ") is requesting assistance in clarifying fire protection powers that have been adopted by service areas (two service areas) in the KIB. Enclosed is a copy of KIB Code Chapter 4.80 concerning the powers adopted by one such service area, Fire Protection Area No. 1. KIB Code §4.80.010 states that: "Fire protection services shall be provided in fire protection area no. 1." The question is: Can the service area, Fire Protection Area No. 1, provide medical services as a first responder? The following information is provided as additional background concerning this issue. The City of Kodiak provides ambulance services to the City of Kodiak and to areas in the Kodiak Island Borough that is served by roads from the City. These services are provided through extraterritorially powers as provided by AS 29.35.020. For your information and as part of the background information, enclosed are copies of two letters sent by the Department of Community and Economic Development to the City of Kodiak in July, 2000 in response to questions from the City of Kodiak concerning emergency medical services and whether the KIB could provide financial assistance to the City in purchasing an ambulance. Based on these letters and other discussion by the City and Borough, it has been determined that KIB does not have powers for emergency medical services and is unable to financially assist the City with the purchase of an ambulance. Currently the KIB fire service areas provide fire protection services and have responded as a first responder to medical emergencies. Once the ambulance arrives, that crew would normally take charge and care for the injured. As the City and the Borough improve their E911 communication equipment which is operated by the City, we have discovered that the fire service areas are not N:\ MA\ ADMA \CorrespondenceMgr\State\L-Dept Comm Fire.dot FILE COPY Page I of 2 always dispatched to medical emergencies. Prior to the change in equipment, volunteers of those fire service areas were able to respond because they heard the call over their radios. Now those calls are encrypted and if the fire service area is to respond, they will need to be dispatched. Thus the question as to whether KIB service areas have the appropriate power to respond to medical emergencies. The fire service areas have volunteers that are EMT I's, whereas the City has EMT III's. The argument from the service area is that they are first responders to fires, search and rescue, vehicle accidents, hazard waste, etc. It would be helpful if you could respond to that argument. It seems that fire departments have been asked by communities to respond to many different things not necessarily related to fire, although there is potential of fire at some of those responses. It seems to me that KIB should, for legal and liability issues, expand its powers to reflect the emergency medical services and possibly the other services that are provided by the fire service areas. I would appreciate your thoughts on that too. I would be happy to discuss the above with you at any convenient time. Please contact me to arrange a mutually agreeable time to discuss. If you have any questions and/or need additional information, please contact me. Thank you in advance for your help on these matters. Sincerely, Kodiak Island Borough Rick L. Gif -. rd Borough Manager RLG:ljw Enclosures N:'MA\ADMA \CorrespondenceMgr \State \LDept Comm Fire.dot Page 2 of 2 Sections: 4.80.010 Creation and powers. 4.80.020 Board. Chapter 4.80 FIRE PROTECTION AREA NO. 1 4.80.010 Creation and powers. Fire protection area no. 1 is established pursuant to Ordinance No. 68 -23 -0 and encompasses the area described in that ordinance. Fire protection services shall be provided in fire protection area no. 1. (Ord. 97 -16, alteration by proposition; Ord. 91 -11 -0 ' 2 ' 6, 1991; Ord. 80 -29 -0 ' 1(part), 1980). 4.80.020 Board. The fire protection area no. 1 board shall consist of five (5) members. (Ord. 91- 11-0 ' 2 ' 6, 1991). 4 -23 4.80.010 -- 4.80.020 (MB 10/98) Supp. #22 Department of Community and Economic Development D ivision of Community and Business Development 550 W. 7th Avenue, Stifle 1770, Anchorage, AK 99501 -3510 Telephone: (907) 269-4580 • Fax: (907) 269 -4539 • Text Telephone: (907) 465 Email: questions @dced.state.ak.us • Website: www.dced.state.ak.uslcbdl Mr. William D. Jones City Manager City of Kodiak P.O. Box 1397 Kodiak, AK 99615 Dear Mr. Jones: July 14, 2000 Tony Knowles, Governor The following provides an explanation of the basis for the conclusions summarized above. RECEIVED JUL 17 2000 KIB MANAGER This is in response to your letter of July 6, 2000, asking for our interpretation of State law regarding the relationship between the City of Kodiak and the Kodiak Island Borough with respect to emergency medical services. Dan Bockhorst and I conferred on the matter. In short, it is our conclusion that: • The Kodiak Island Borough‘lacks authority to provide financial support to the City of Kodiak for emergency medical services. • The City of Kodiak may unilaterally discontinue extraterritorial emergency medical services. • The Kodiak Island Borough cannot assume the power to provide emergency medical services within the City of Kodiak by simply adopting an ordinance to include such services within the definition of the Borough's areawide health power. The Kodiak Island Borough Tacks authority to provide financial support to the City of Kodiak for emergency medical services. It appears that both the City and Borough agree that the Borough does not presently have, and never has had, the power to exercise emergency medical services on any jurisdictional level (i.e., areawide, non - areawide, or through service areas). If the Borough has no authority to exercise the power of Mr. William D. Jones July 14, 2000 Page 2 emergency medical services, it cannot legally expend money for that purpose. See McQuillin Municipal Corporation, § 39.17 (3rd Edition). The City cites AS 29.35.010(9) and AS 29.35.010(13) in an apparent attempt to argue that the Borough may pay funds to the City for emergency medical services. AS 29.35.010(9) allows the Borough to "expend money for a community purpose, facility, or service for the good of the municipality ... ". However, the same law further provides that the power exists only "... to the extent that the municipality is otherwise authorized by law to exercise the power necessary to accomplish the purpose or provide the facility or service ". Since the Borough lacks the power to provide emergency medical services, it follows that it also lacks the power to expend funds for a community purpose, facility or service relating to emergency medical services. AS 29.35.010(13) allows the Borough and City to enter into agreements in general. However, that provision is not relevant to the issue at hand since the Borough lacks authority to expend funds for emergency medical services. The City may unilaterally discontinue extraterritorial emergency medical services. The City asserts that the Borough has taken the position that the City cannot discontinue emergency medical services.' The unsigned minutes of the June 8, 2000 Borough Assembly Work Session support that assertion, although the May 24 letter from the Borough Manager does not expressly state such a position. The power to provide emergency medical services is discretionary for municipal governments in Alaska. Further, the exercise of that discretionary power by a municipality on an extraterritorial basis is optional. We find no express or implied restriction in State law or the Charter of the City of Kodiak that relates to the authority of the City of Kodiak to discontinue discretionary services, including those provided extraterritorially. Further, we are unaware of any express or implied restriction in federal law regarding such. In the absence of a State, federal, or local restriction to discontinue services, the home rule City of Kodiak enjoys plenary power to discontinue discretionary 1 The City also emphasizes provisions in AS 29.35.020(1) that Impose a requirement that, before a municipality may exercise certain services extraterritorially, it must obtain approval by ordinance from the municipality in which the services are to be exercised extraterritorially. That provision is not relevant to the discussion of extraterritorial emergency medical services. AS 29.35.020(b) expressly states in two places that it applies only to that subsection. Authorization for extraterritorial emergency medical services is provided in the preceding subsection. Mr. William D. Jones July 14, 2000 Page 3 services or to discontinue the extraterritorial exercise of such services. As a home rule city, the council of the City of Kodiak enjoys the same power as the State legislature to define the powers, duties, and procedures for the delivery of services by the City, so long as there are no express or implied limitations to the contrary. See Article X, Section 11, Constitution of the State of Alaska; Jefferson v. State, 527 P.2d 37 (Alaska 1974); and McQuillin Municipal Corporation, § 4.05 (3rd Edition). The Borough cannot assume the power to provide emergency medical services within the City of Kodiak by simply adopting an ordinance to include such services within the definition of the Borough's areawide health power. The Borough has adopted areawide health powers. Powers of municipal governments in Alaska are to be given a liberal construction. See Article X, Section 1 of the Constitution of the State of Alaska; AS 29.35.400 — 29.35.420; Liberati v. Bristol Bay Borough, 584 P.2d 1115 (Alaska 1978). However, in this particular instance, the Kodiak Island Borough has a long- standing, formal designation in its municipal code that narrowly defines its health powers in a manner that clearly excludes emergency medical services. Further, the City of Kodiak has exercised emergency medical services for many years. Given these circumstances, the Kodiak Island Borough is constrained by AS 29.35.300 et seq. with regard to the assumption of the power to provide emergency medical services. Conclusion. We hope our comments are helpful in resolving the issue of the efficient, effective, and legal delivery of such a fundamental public service. If we can be of further assistance in this matter, please contact me. Cordially, Pa rick K. Poland Director cc: Dave Jensen, Borough Manager, Kodiak Island Borough Tony Knowles. Governor Department 01 Community and Economic Development . Division of Community and Business Development 550 W 7th Avon IA. RI 9P 1770, Anahnrapn. AK 995n1.:1510 Telephone: (907) 269 -4590 • Fax (907) 2694539 • Text Telephone: (907) 465.5437 Enall: questlons@dced.stateak.us • Wehsite: www.dced.state.ak,uslabdl Mr. William D. Jones City Manager City of Kodiak P.O. BOX 1397 Kodiak, AK 99615 Dear Mr. Jones: July 18, 2000 This is to follow up your telephone call this morning concerning the issue of emergency medical services to the greater community of Kodiak (Ia. the area connected by road both inside and outside the boundaries of the City of Kodiak). Based on the discussion this moming, we offer the following conclusions in addition to those expressed In our letter of July 14, 2000: • If the Kodiak Island Borough adopted the power to pmvlde emergency modical oorviooe on a non - areawide basis, suoh would not require the City of Kodiak to transter its EMS related powers and assets to the Borough. • The City was not expressly required by State law to adopt an ordinance providing for the exercise of emergency medical services on an extraterritorial basis. • The Borough can assume "ambulance services" only by complying with State laws dealing with the acquisition of additional powers (AS 29.35,210 et seq.). The following offers some detail about the conclusions summarized above. If the Kodiak Island Borough adopted the power to provide emergency medical services on a non - areawide basis, such would not require the City of Kodiak to transfer Its EMS related powers and assets to the Borough. You asked that we clarify the effect on a city government of the adoption of a non - areawide power by a borough. You indicated that it has been asserted by the Kodiak Island Borough that if the Borough were to adopt emergency medical services on a non - areawide basis, such would compel the City of Kodiak to nit>o Mr. 8111 Jones July 18, 2000 Page 2 transter to the tiorougn the GItys powers, duties, assets, and liabilities concerning emergency medical services. There are a variety of ways that the Borough would become the logal successor to the City tor a particular power, however, adoption of a non - areawide power is clearly not one of them, The term "non-areawide" is defined by AS 29,71,500(14) to mean "throughout the area of a borough outside all cities in the borough? The City of Kodiak is not part of the "non - areawide" jurisdiction of the Kodiak Island Borough. Ways in which the Borough could assume the City's powers, assets, duties, and liabilities relating to EMS (and, in some cases, other services) include the following; • Adoption of EMS powers on an areawide basis by the Borough through an areawide election pursuant to AS 29.35,300(b). • Transfer of EMS powers from the City to the Borough pursuant to AS 29.35.310. • Creation of a Borough EMS service area encompassing the City of Kodiak pursuant to AS 29.35.450(a), • Consolidation or merger of the City of Kodiak and the Kodiak Island Borough pursuant to AS 29.06.090, et seq. • Unification of local governments in the Kodiak !eland Borough pursuant to AS 29.06.190, et seq. The City was not expressly required by State law to adopt an ordinance providing for the exercise of emergency medical services on an extraterritorial basis. AS 29.35.020(a) does not expressly require a municipality to adopt an ordinance providing for the exercise of an extraterritorial power listed in that particular subsection. That is distinct from the provisions in AS 29.35.020(b) that deal with extraterritorial regulation of watersheds or hazardous substance control. AS 2925.020(a) does provide tnat "A regulation adopted under AS 29.35.020 must state that 11 applies outside the municipality." A regulation Is not the same as an ordinance. (In some cases an ordinance must be enacted to provide for regulations -- e.g., if a fine or penalty is imposed.) Notwithstanding the lack of an express requirement tor such In State law, we believe that it would be prudent for all municipal governments to adopt ordinances authorizing the exercise of a power on an extraterritorial basis. We understand front you that there is no evidence that the City of Kodiak ever adopted an ordinance providing for extraterritorial EMS services. Mr. Bill Jones July 18, 2000 Page 3 Notwithstanding, if the City of Kodiak at some point chooses to discontinue extraterritorial EMS service, we recommend that it do so by ordinance. Obviously, It would be vital to the Interests of the community to provide for a proper transition in the event that the City chooses to discontinue its extraterritorial FMS snrvire. A "proper" transition would he one that allows the Borough adequate time to properly institute altemative provisions so that citizens are not left without the fundamental benefit of emergency medical services. The Borough can assume "ambulance services" only by complying with State laws dealing with the acquisition of additional powers (AS 29.35.210 et seq.). You asked whether the Borough could define Its areawide health powers to Include "ambulance services ". This Is essentially the same question that was addressed in our July 14 letter concerning EMS services. Our answer to this quostion le the same as outlinod in our July 14 totter. The Kodiak Island Borough has a long - standing, formal designation In its municipal code that narrowly defines lis health powers In a manner that clearly excludes amarganny medical services or " amhulance services". Further, the City of Kodiak has exercised emergency medical services, including "ambulance services" for many years. Given these circumstances, we believe that the Kodiak Island Borough is constrained by AS 29.35.300 et seq. with regard to the assumption of the power to provide emergency medical services or ambulance services ". Conclusion. We appreciate your interest in arriving at a proper and timely solution to this important Issue. The current circumstance seems to place both the City of Kodiak and the Kodiak Island Borough at some risk. The City is providing services outside Its boundaries without the benefit of a formal agreement with the Borough. We understand from you that individuals In the area outside the City who receive ambulance services from the City typically pay only a small traction of the ambulance service fees assessed tor the delivery of such services. That suggests that the City ratepayers and/or taxpayers heavily subsidize the ambulance services to the area outside the City. If some City citizen or taxpayer suffers because he or she needs emergency medical services when the EMS resources of the City were being used extraterritorlally, the City may have some exposure to liability. Similarly, if aroawide or non - areawlde Borough revenues are used to partially fund the extraterritorial EM3 services of the City, the Borough would seem to be In conflict with AS 29.35.110. That provision states: JVL IV VV WLY IV'JV Mr. Silt Jones July 18, 2000 Page 4 Borough revenues received through taxes collected on an areawide basis by the borough may be expended on general administrative costs and on areawide functions only. Borough revenues received through taxes collected on a nnnarenwlde basis may be expended on general administrative costs and functions that render service only to the area outside all cities In the borough. rurther, as we noted in our July 14 letter, we believe that 111e Borough !auks authority to expend any funds for emergency medical services. Wp recognize that there are no easy answers to the matter. However, we do believe that a solution to the issue requires one of two acts — annexation to the City of Kodiak or creation of a service area. Annexation has been considered on many occasions since the 1970s, most recently last year when it was rejected by 88% of the voters who voted on the Issue. The alternative of a oorvioe area may offer a oolution that io more acceptable locally. A service area could be used In a variety of fashions. For example, a service area could be established surrounding the City. The City could then enter Into a contract with the Borough to provide emergency medical services to that service area. Alternatively, a service area could be established encompassing the grantor community of Kodiak, including the area within the corporate boundaries of the City. A service area could alao be utilized in conjunction with longer -term approaches such as unification, consolidation, or merger of local governments in the region. We do note that the service area approach is constrained by Artiole X, Section 5 of Alaska's Constitution and AS 29.25.450(b). Those provisions prohibit the creation of a service area if the needed service can be provided by annexation to a city. That would seem to pose the greatest legal impediment to the option described earlier involving the creation of a service area surrounding the City. Residents of Kodiak are not unique In dealing with this particular Issue. Citizens of the greater Homer area have been grappling with a virtually identical issue for a number of years as well. We wish you the best in quickly and proporly resolving thie matter. Cor Pat ick K. Poland Director co: Have Jensen, borough Manager. Kodiak Island Borough 1. VW /v, March 27, 2007 Kodiak Island Borough Rick Gifford Borough Manager 710 Mill Bay Road Kodiak, AK 99615 Re: Service area, Fire Protection Area No. 1 - ability to provide medical services as a first responder. Dear Mr. Gifford, Division of Community Advocacy, Director Mike Black requested 1 reply to the question of "Can Service Area, Fire Protection Area No. I provide medical services as a first responder ? ". In the July 18, 2000 letter from Patrick Poland to City Manager William Jones, it stated "the City and Borough agree that the Borough does not have, and never has had, the power to exercise emergency medical services on any jurisdictional level. If the Borough has no authority to exercise the power of emergency medical services, it cannot legally expend money for that purpose ". In researching the Borough code and in speaking with the Assistant Fire Chief Bob Himes, there is no clear definition of what the Borough fire protection includes. It is recommended that the Borough check with their insurance carrier to clarify whether there is sufficient coverage and work with the Assembly to specify the detail of the services the Borough fire protection includes. Unless changes have been made since that letter, the Borough should not provide medical services. Some options the Borough has in enabling itself to provide these services would include: I hope this letter provides clarification for you. If you have any questions please feel free to contact me. Sincerely, Tammy -Helms LGS, DCCED, DCA D E P A R T M E N T O F COMMERCE COMMUNITY AND ECONOMIC DEVELOPMENT Division of Community Advocacy ♦ Adopt EMS powers on an area wide basis by the Borough through an area wide election pursuant to AS 29.35.300(6) • Transfer EMS powers from the City to the Borough pursuant to AS 29.35.310. ♦ Create a Borough EMS service area encompassing the City of Kodiak pursuant to AS 29.35.450(a). Cc: Mike Black, Director, DCCED, DCA Scott Ruby, Regional Office Manager, DCCED, DCA ,ECEIVC J MAR 3 0 2007 I KIB MANAGER 550 W. 7th Avenue, Suite 1770, Anchorage, Alaska 99501 -3510 Telephone: (907) 269 -4580 Fax: (907) 269 -4563 Text Telephone: (907) 465 -5437 Email: questions @commerce.state.ak.us Website: http: / /www.commerce.state.ak.us /dca/ Sarah Palin, Governor Emil Notti, Commissioner Michael Black, Director .LI�MU CIA JOINT INSURANCE ASSOCIATION. INC April 3, 2007 Rick Gifford Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Dear Mr. Gifford: Thank you for your phone call this afternoon regarding the Kodiak Island Borough and provision of emergency medical services. Your attention to risk management concerns on behalf of the borough's citizens is commendable. While we would all like to provide the borough's residents with the best service they can expect, residents should not expect to receive services that are illegal. Since the Division of Community Advocacy has reviewed this issue and advised the borough at least twice in writing that the borough lacks the legal authority to provide emergency medical services, in my judgment it would be inadvisable to continue to do so. I encourage the borough to review the various options available to it, select one, and move as quickly as possible towards implementing a solution. If you have further questions, please give me a call. Kevin Smith Executive Director A 1 ECEIVE APR 6 2001 KIB MANAGER 807 G Street, Suite 356 Anchorage, AK 99501 [907.258.2625 F907.279.3615 1 1 011 Flrc 10 AK 1.800.337.3682 7 org PROTECT A service of ALASKA MUNICIPAL LEAGUE TO: COMPANY: FMO -Fire Prevention Ops FAX NUMBER: (907) 338 -4375 PHONE NUMBER: RE: David Tyler, Division Director Fire Protection Powers NOTES /COMMENTS: Mr. Tyler, Please call if you should have any questions. Lauri Whiddon COPY KODIAK ISLAND BOROUGH OFFICE OF THE MANAGER 710 MILL BAY ROAD KODIAK, AK 99615 (907)486 -9301 (907)486- 9374FAX FACSIMILE TRANSMITTAL SHEET FROM: Lauri Whiddon, HR Officer /Exec As DATE: 4/4/2007 TOTAL NO. OF PAGES INCLUDING COVER: 1 � SENDER'S REFERENCE NUMBER: YOUR REFERENCE NUMBER: ❑ URGEN'I' ❑ FOR REVIEW ❑ PLEASE COMMENT ❑ PLEASE REPLY ❑ PLEASE RECYCLE We are faxing this letter with enclosures, with the original to follow in the mail. Manager Rick Gifford will be out of town, leaving this afternoon and will return to the office Tuesday, April 10th. He said that he will contact you upon his return to Kodiak CONFIDENTIALITY STATEMENT This facsimile transmission may contain privileged and confidential information intended only for the use of the individual(s) named above. If you have received this communication in error, please notify us immediately by telephone to arrange for return of the documents. If there are any problems with this transmission, please call the above number. Thank you. • April 4, 2007 David Tyler Division Director FMO -Fire Prevention Operations Department of Public Safety State of Alaska 5700 E. Tudor Road Anchorage, AK 99501 -3510 Page 1 oft coPY Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9301 Fax (907) 486 -9374 E -mail: raifford@kib.co.kodiakak.us Dear Mr. Tyler: The Kodiak Island Borough ( "KIB ") is requesting assistance in clarifying fire protection powers that have been adopted by service areas (two service areas) in the KIB. Enclosed is a copy of KIB Code Chapter 4.80 concerning the powers adopted by one such service area, Fire Protection Area No.1. KIB Code §4.80.010 states that: "Fire protection services shall be provided in fire protection area no. 1." The question is: Can the service area, Fire Protection Area No. 1, provide medical services as a first responder? The following information is provided as additional background concerning this issue. The City of Kodiak provides ambulance services to the City of Kodiak and to areas in the Kodiak Island Borough that is served by roads from the City. These services are provided through extraterritorially powers as provided by AS 29.35.020. For your information and as part of the background information, enclosed are copies of two letters sent by the Department of Community and Economic Development to the City of Kodiak in July, 2000 in response to a letter from the City of Kodiak concerning emergency medical services and whether the KIB could provide financial assistance to the City in purchasing an ambulance. Based on these letters and other discussion by the City and Borough, it has been determined that KIB does not have powers for emergency medical services and is unable to financially assist the City with the purchase of an ambulance. Also enclosed is more recent correspondence with the Division of Community Advocacy concerning this issue of providing medical services as a first responder versus actually providing the ambulance service which is currently being provided by the City of Kodiak. Currently the KIB fire service areas provide fire protection services and have responded as a first responder to medical emergencies. Once the ambulance arrives, that crew would normally take charge and care for the injured. As the City and the Borough improved their E911 communication equipment which is operated by the City, we discovered that the fire service areas are not always dispatched to medical emergencies. Prior to the change in equipment, volunteers of those fire service areas were able to respond because they heard the call over their radios. Now those calls are encrypted and if the fire service area is to respond, they will need to be dispatched. Thus the question as to whether KIB service areas have the appropriate power to respond to medical emergencies as a first responder. The fire service areas have volunteers that are EMT I's, whereas the City has EMT III's. The argument from the service area is that they are first responders to fires, search and rescue, vehicle accidents, hazardous waste, etc. It would be helpful if you could respond to that argument. It seems that fire departments have been asked by communities to respond to many different things not necessarily related to fire, although there is potential of fire at some of those responses. The service area volunteer fire departments assist the City in responding to medical emergencies and have been doing so for many years. The community relies on that assistance and the first responder response by the service area fire departments. If the definition of fire protection does not include first responder services, then it would seem to me that KIB should, for legal and liability issues, expand its powers to reflect the emergency medical services and possibly the other services that are provided by the fire service areas. I would appreciate your thoughts on that, too. I would be happy to discuss the above with you at any convenient time. Should you have any questions and /or need additional information, please feel free to contact me. Thank you in advance for your help on these matters. I look forward to hearing from you. Sincerely, KODIAKISLAND BOROUGH ci V Rick L. Giffor Borough Manager RLG:ljw Enclosures Page 2 of 2 Sections: 4.80.010 Creation and powers. 4.80.020 Board. Chapter 4.80 FIRE PROTECTION AREA NO. 1 4.80.010 -- 4.80.020 4.80.010 Creation and powers. Fire protection area no. 1 is established pursuant to Ordinance No. 68 -23 -0 and encompasses the area described in that ordinance. Fire protection services shall be provided in fire protection area no. 1. (Ord. 97 -16, alteration by proposition; Ord. 91 -11 -0 ' 2 ' 6, 1991; Ord. 80 -29 -0 ' 1(part), 1980). 4.80.020 Board. The fire protection area no. 1 board shall consist of five (5) members. (Ord. 91- 11- 0'2'6,1991). 4 -23 (MB 10/98) Supp. #22 Tony Knowles, Governor Department of Community and Economic Development D ivision of Community and Business Development 550 W. 7th Avenue, Suite 1770, Anchorage, AK 99501 -3510 Telephone: (907) 269-4580 • Fax: (907) 269 -4539 • Text Telephone: (907) 465 Email: questions ©dced.state.ak.us • Website: www.dced.state.ak.uslcbdl July 14, 2000 RECEIVED JUL 17 2000 KIB MANAGER Mr. William D. Jones City Manager City of Kodiak P.O. Box 1397 Kodiak, AK 99615 Dear Mr. Jones: This is in response to your letter of July 6, 2000, asking for our interpretation of State law regarding the relationship between the City of Kodiak and the Kodiak Island Borough with respect to emergency medical services. Dan Bockhorst and I conferred on the matter. In short, it is our conclusion that: • The Kodiak Island Borough'lacks authority to provide financial support to the City of Kodiak for emergency medical services. • The City of Kodiak may unilaterally discontinue extraterritorial emergency medical services. • The Kodiak Island Borough cannot assume the power to provide emergency medical services within the City of Kodiak by simply adopting an ordinance to include such services within the definition of the Borough's areawide health power. The following provides an explanation of the basis for the conclusions summarized above. The Kodiak Island Borough lacks authority to provide financial support to the City of Kodiak for emergency medical services. It appears that both the City and Borough agree that the Borough does not presently have, and never has had, the power to exercise emergency medical services on any jurisdictional level (i.e., areawide, non- areawide, or through service areas). If the Borough has no authority to exercise the power of Mr. WIlllam D. Jones July 14,2000 Page 2 emergency medical services, it cannot legally expend money for that purpose. See McQuillin Municipal Corporation, § 39.17 (3rd Edition). The City cites AS 29.35.010(9) and AS 29.35.010(13) in an apparent attempt to argue that the Borough may pay funds to the City for emergency medical services. AS 29.35.010(9) allows the Borough to "expend money for a community purpose, facility, or service for the good of the municipality ... ". However, the same law further provides that the power exists only "... to the extent that the municipality is otherwise authorized by law to exercise the power necessary to accomplish the purpose or provide the facility or service ". Since the Borough lacks the power to provide emergency medical services, it follows that it also Tacks the power to expend funds for a community purpose, facility or service relating to emergency medical services. AS 29.35.010(13) allows the Borough and City to enter into agreements in general. However, that provision is not relevant to the issue at hand since the Borough lacks authority to expend funds for emergency medical services. The City may unilaterally discontinue extraterritorial emergency medical services. The City asserts that the Borough has taken the position that the City cannot discontinue emergency medical services.' The unsigned minutes of the June 8, 2000 Borough Assembly Work Session support that assertion, although the May 24 letter from the Borough Manager does not expressly state such a position. The power to provide emergency medical services is discretionary for municipal governments in Alaska. Further, the exercise of that discretionary power by a municipality on an extraterritorial basis is optional. We find no express or implied restriction in State law or the Charter of the City of Kodiak that relates to the authority of the City of Kodiak to discontinue discretionary services, including those provided extraterritorially. Further, we are unaware of any express or implied restriction in federal law regarding such. In the absence of a State, federal, or local restriction to discontinue services, the home rule City of Kodiak enjoys plenary power to discontinue discretionary 1 The City also emphasizes provisions in AS 29.35.020(b) that impose a requirement that, before a municipality may exercise certain services extraterritorially, it must obtain approval by ordinance from the municipality in which the services are to be exercised extraterritorially. That provision Is not relevant to the discussion of extraterritorial emergency medical services. AS 29.35.020(b) expressly states in two places that it applies only to that subsection. Authorization for extraterritorial emergency medical services is provided In the preceding subsection. Mr. William D. Jones July 14, 2000 Page 3 services or to discontinue the extraterritorial exercise of such services. As a home rule city, the council of the City of Kodiak enjoys the same power as the State legislature to define the powers, duties, and procedures for the delivery of services by the City, so long as there are no express or implied limitations to the contrary. See Article X, Section 11, Constitution of the State of Alaska; Jefferson v. State, 527 P.2d 37 (Alaska 1974); and McQuillin Municipal Corporation, § 4.05 (3rd Edition). The Borough cannot assume the power to provide emergency medical services within the City of Kodiak by simply adopting an ordinance to include such services within the definition of the Borough's areawide health power. The Borough has adopted areawide health powers. Powers of municipal governments in Alaska are to be given a liberal construction. See Article X, Section 1 of the Constitution of the State of Alaska; AS 29.35.400 — 29.35.420; Liberati v. Bristol Bay Borough, 584 P.2d 1115 (Alaska 1978). However, in this particular instance, the Kodiak Island Borough has a long- standing, formal designation in its municipal code that narrowly defines its health powers in a manner that clearly excludes emergency medical services. Further, the City of Kodiak has exercised emergency medical services for many years. Given these circumstances, the Kodiak Island Borough is constrained by AS 29.35.300 et seq. with regard to the assumption of the power to provide emergency medical services. Conclusion. We hope our comments are helpful In resolving the issue of the efficient, effective, and legal delivery of such a fundamental public service. If we can be of further assistance in this matter, please contact me. Cordially, Pa rick K. Poland Director cc: Dave Jensen, Borough Manager, Kodiak Island Borough Tony Knowles. Governor P. Departmoiiitt of Cor ilv Ann Economic ®ouelopment Division of Community and Business Development 550 W 7•h Avon, let RIIIiR 1770, Annhnrage. AK 99501 M1F1n Telephone: (907)2694590 • Fax: (907) 2694539 • Text Telephone: (907) 465.5437 Ernst questlonatdced.state.ak.us • Webete: www.dced.stste.ak,uslcbdl Mr. William D. Jones City Manager City of Kodiak P.O. BOX 1397 Kodiak, AK 99615 July 18, 2000 Dear Mr. Jones: This is to follow up your telephone call this morning concerning the issue of emergency medical services to the greater community of Kodiak (i.e.. the area connected by road both inside and outside the boundaries of the City of Kodiak). Based on the discussion this morning, we offer the following conclusions in addition to those expressed in our letter of July 14, 2000; • It the Kodiak Island Borough adopted the power to provide emergency medical corviooe on a non - areawide basis, such would not require the City of Kodiak to transfer its EMS related powers and assets to the Borough. • The City was not expressly required by State law to adopt an ordinance providing for the exercise of emergency medical services nn an extraterritorial basis. • The Borough can assume "ambulance services" only by complying with State laws dealing with the acquisition of additional powers (AS 29.36,210 et Sep.). The following offers some detail about the conclusions summarized above. If the Kodiak Island Borough adopted the power to provide emergency medical services on a non - areawide basis, such would not require the City of Kodiak to transfer its EMS related powers and assets to the Borough. You asked that we clarify the effect on a city government of the adoption of a non - areawide power by a borough. You indicated that it has been asserted by the Kodiak Island Borough that if the Borough were to adopt emergency medical services on a non - areawide basis, such would compel the City of Kodiak to also Mr. Bill Jones July 18, 2000 Page 2 transter to the Borrougn the GIty's powers, duties, assets, and IIa0111tIes concerning emergency medical services. There are a variety of ways that the Borough would become the legal succoosor to the City tor a particular power, however, adoption of a non - areawide power is clearly not one of them, The term "non-areawide" is defined by AS 29.71,300(14) to mean "throughout the area of a borough outside all cities in the borough? The City of Kodiak Is not part of the "non - areawide" Jurisdiction of the Kodiak Island Borough. Ways in which the Borough could assume the City's powers, assets, duties, and liabilities relating to EMS (anrl, in some cases, other services) Include the following; • Adoption of EMS powers on an areawide basis by the Borough through an areawide election pursuant to AS 29.35.300(b). • Transfer of EMS powers from the City to the Borough pursuant to AS 29.35.310. • Creation of a Borough EMS service area encompassing the City of Kodiak pursuant 10 AS 29.35,450(a). • Consolidation or merger of the City of Kodiak and the Kodiak Island Borough pursuant to AS 29.06.090, et seq. • Unification of local governments In the Kodiak Island Borough pursuant to AS 29.06.190, of seq. The City was not expressly required by State law to adopt an ordinance providing for the exercise of emergency medical services an an extraterritorial basis. AS 29.35.020(a) does not expressly require a municipality to adopt an ordinance providing for the exercise of an extraterritorial power listed In that particular subsection. That is distinct from the provisions in AS 29.95.020(b) that deal with extraterritorial regulation of watersheds or hazardous substance control. AS 29.35.020(a) does provide that "A regulation adopted under AS 29.35.020 muss state that It applies outside the municipality. A regulation is not the same as an ordinance. (In some cases an ordinance must be enacted to provide for regulations -- e.g., If a fine or penalty is imposed.) Notwithstanding the lack of an express requirement tor such In State law, we believe that it would be prudent for all municipal governments to adopt ordinances authorizing the exercise of a power on an extraterritorial hasls. We understand from you Illttl lime 'silo evidence that the City of Kodiak ever adopted an ordinance providing for extraterritorial EMS services. Mr. Dill Jones July 18, 2000 Page 3 Notwithstanding, if the City of Kodiak ai some point chooses to discontinue extraterritorial EMS service, we recommend that it do so by ordinance. Obviously, It would be vital to the Interests of the community to provide tor a proper transition in the event that the City chooses to discontinue its extraterritnrial FMS service. A "proper" transition would he one that allows the Borough adequate time to properly institute alternative provisions so that citizens are not left without the fundamental benefit of emergency medical services. The Borough can assume "ambulance services" only by complying with State laws dealing with the acquisition of additional powers (AS 29.35.210 et seq.). You asked whether the Borough could define Its areawide health powers to Include "ambulance services ". This Is essentially the same question that was addressed in our July 14 letter concerning EMS services. Our answer to this question le the same as outiinod in our July 14 loner. The Kodiak Island Borough has a long - standing, formal designation In Its municipal code that narrowly defines Its health powers In a manner that clearly exrlr ides emergency medical senrinee nr "amhulenre spMcf R ". Further, the City of Kodiak hae exercised emergency medical services, including "ambulance services" for many years. Given these circumstances, we believe that the Kodiak Island Borough Is constrained by AS 29.35.300 et seq. with regard to the assumption of the power to provide emergency medical services or "ambulance services ". _ Conclusion. We appreciate your interest in arriving at a proper and timely solution to this Important Issue. The current circumstance seems to place both the City of Kodiak and the Kodiak Island Borough at some risk, The City is providing services outside Its boundaries without the benefit of a formal agreement with the Borough, We understand from you that individuals In the area outside the City who receive ambulance services from the City typically pay only a small fraction of the ambulance service tees assessed tor the delivery of such services. That suggests that the City ratepayers andlor taxpayers heavily subsidize the ambulance services to the area outside the City. If some City citizen or taxpayer suffers because he or she needs emergency medical services when the EMS resources of the City were being used extralerriiorially, the City may have some exposure to liability. Similarly, if aroawido or non- areawide Borough revenues am used to partially fund the extraterritorial EM3 services of the City, the Borough would seem to be In conflict with AS 29 35.1 10. That provision states: JVL 1J VV VILA 1J'4V Mr. Bill Jones July 18, 2000 Page 4 Borough revenues received through taxes collected on an areawlde basis by the borough may be expended on general administrative costs and on areawide functions only. Borough revenues received through taxes collected on a nonareawlde basis may be expended on general administratIve costs and Junctions that render service only to the area outside all cities In the borough. rurther, as we noted in our July 14 letter, we believe that II ie Butuuyh (auks authority to expend any funds for emergency medical services. We recognize that there are no easy answers to the matter. However, we do believe that a solution to the Issue requires one of two acts — annexation to the City of Kodiak or creation of a servlue area. Annexation has been considered on many occasions since the 1970S, moat recently last year when it was rejected by 89% of the voters who voted on the Issue. The altornativo of a ocrvioo arca may offer a oolution that io more acceptable locally. A service area could be used In a variety of fashions. For example, a service area could be established surrounding the City. The City could then enter Into a contract with the Borough to provide emergency medical services to that service area. Alternatively, a service area could be established encompassing the grantor community of Kodiak, including the area within the corporate boundariee of the City. A service area could also be utilized In conjunction with longer -term approaches such as unification, consolidation, or merger of local governments in the region. We do note that the service area approach is constrained by Article X, Section 5 of Alaska's Constitution and AS 29.35.450(b). Those provisions prohibit the creation of a service area if the needed service can be provided by annexation to a city. That would seem to pose the greatest legal impediment to the option described earlier involving the creation of a service area surrounding the City. Residents of Kodiak are not unique In dealing with this particular Issue. Citizens of the greater Homer area have been grappling with a virtually identical issue tor a number of years as well. We wish you the best In quickly and properly resolving this matter. Car ( ? << Pafiok K. Poland Director cc: Uave Jensen, borough Manager. Kodiak Island Borough D E P A R T M E N T O F COMMERCE COMMUNITY AND ECONOMIC DEVELOPMENT Division of Community Advocacy March 27, 2007 Kodiak Island Borough Rick Gifford Borough Manager 710 Mill Bay Road Kodiak, AK 99615 Re: Service area, Fire Protection Area No. 1 - ability to provide medical services as a first responder. Dear Mr. Gifford, Division of Community Advocacy, Director Mike Black requested I reply to the question of "Can Service Area, Fire Protection Area No. 1 provide medical services as a first responder ? ". In the July 18, 2000 letter from Patrick Poland to City Manager William Jones, it stated "the City and Borough agree that the Borough does not have, and never has had, the power to exercise emergency medical services on any jurisdictional level. If the Borough has no authority to exercise the power of emergency medical services, it cannot legally expend money for that purpose ". In researching the Borough code and in speaking with the Assistant Fire Chief Bob Himes, there is no clear definition of what the Borough fire protection includes. It is recommended that the Borough check with their insurance carrier to clarify whether there is sufficient coverage and work with the Assembly to specify the detail of the services the Borough fire protection includes. Unless changes have been made since that letter, the Borough should not provide medical services. Some options the Borough has in enabling itself to provide these services would include: • Adopt EMS powers on an area wide basis by the Borough through an area wide election pursuant to AS 29.35.300(b) • Transfer EMS powers from the City to the Borough pursuant to AS 29.35.310. • Create a Borough EMS service area encompassing the City of Kodiak pursuant to AS 29.35.450(a). I hope this letter provides clarification for you. If you have any questions please feel free to contact me. Sincerely, Tammy -Helms LOS, DCCED, DCA Cc: Mike Black, Director, DCCED, DCA Scott Ruby, Regional Office Manager, DCCED, DCA 550 W. 7th Avenue, Suite 1770, Anchorage, Alaska 99501 -3510 Telephone: (907) 269 -4580 Fax: (907) 269 -4563 Text Telephone: (907) 465 -5437 Email: questions @commerce.state.ak.us Website: http:/ /wnvw.commerce.state.ak.us /dca/ Sarah Palin, Governor EmilNotti, Commissioner Michael Black, Director " glE EIVE _ 111 MAR 3 0 2007 KIB MANAGER Rick Gifford, Borough Manager Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Dear Mr. Gifford: State of Alaska Department of Public Safety Division of Fire Prevention April 17, 2007 Sarah Palin, Governor Wal Monegan, Commissioner In response to your letter dated April 4, 2007, and our subsequent telephone conversation I offer the following response to your question: "Can the service area, Fire Protection Area No. 1, provide medical services as a first responder ?" First let me begin by saying that 1 am not an attorney, and this response should in no way be considered a legal opinion. My comments are based solely on my experience in working with emergency services in a second class borough. I strongly recommend that you consult a competent municipal attorney for definitive answers to your questions. As we discussed earlier the main issues are response authority and funding. It is the people who give this to us. In the case of the fire service area "Fire Protection Area No. 1" the people within that geographical location, through a municipal election, gave the authority to respond and to collect taxes to pay for the fire protection response. This is not authority to provide emergency medical response. There are some collateral duties which can easily be associated with fire protection, one of those being HazMat response. Both of these functions use the same or similar tools. HazMat training is required for Firefighter certification. In fact, structure fires and motor vehicle accidents are considered hazardous materials responses. r ECEIVE i APR 1 9 2007 KIB MANAGER J Page 2 April 17, 2007 Rick Gifford, Borough Manager Fire Service Area To the general public fire and EMS are almost synonymous. The vast majority of fire departments also provide EMS response. However, the world in which we operate has to see this differently. Right now, from what I have seen, you can not legally use money collected from the fire service area to provide EMS coverage. To authorize the use of this money it would take another vote of the people. You also sent me documentation showing that the Kenai Island Borough voted in Health Powers, but at the same time the KIB Assembly ordained that these powers would not include EMS. You asked if the Assembly were to change that ordinance if that would allow you to respond to EMS calls. I have no answer for that question. Again, this would be a great question for a municipal attorney. From my perspective there is probably no easy way for you to get where you want to be. I feel your best option is to go to the public and ask for non -area wide EMS powers. This would cover your bases concerning all of your issues, response, funding and insurance. In closing I would like to re- emphasize the point that you should seek legal council regarding this matter. From the information you have provided me you may be responding to calls without the authority to do so. You might also be spending money beyond your authority if you are using funds collected from the fire service area to purchase EMS equipment and training. Please feel free to contact me again if you have any further questions. Sincerely, Davi . Tyler Director 5700 East Tudor Rd. - Anchorage, AK 99507 - Voice (907) 269 -5491- Fax (907) 338 -4375