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2010-05-06 Regular MeetingKodiak Island Borough Assembly Regular Meeting Agenda Thursday, May 6, 2010, 7:30 p.m., Assembly Chambers 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. *Regular Meeting of April 1, 2010. 6. AWARDS AND PRESENTATIONS A. Student of the Month — May 2010 B. Employee of the Quarter C. Proclamation - Municipal Clerks Week D. Proclamation — Mental Health Month E. Proclamation — Older Americans Month F. Certificate of Recognition Honoring KMXT Public Radio Station 7. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) A. Agenda Items Not Scheduled for Public Hearing and General Comments 8. COMMITTEE REPORTS A. Alaska Aerospace Development Corporation — Dale Nash 9. PUBLIC HEARING A. Resolution No. FY2010 -33 Authorizing the Approval of a Long Term Lease and Material Sales Contract With Brechan Enterprises, Inc. For Tracts B1, B2, B3, and B4 -A, Bells Flats Alaska Subdivision. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS A. Contract No. FY2010 -30 Solid Waste Collection Contract. Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 12. Citizens' Comments and Public Hearing Numbers: Toll Free (800) 478 -5736 and Local 486 -3231. Page 1 of 2 13. NEW BUSINESS A. Contracts 1. Contract No. FY2010 -34 Kodiak Auditorium Roofing Project. B. Resolutions 1. *Resolution No. FY2010 -32 Approving the Village of Karluk and Its Native Village Council to Participate in the FY2011 Community Revenue Sharing Program. C. Ordinances for Introduction 1. Ordinance No. FY2010 -01 B Amending Ordinance No. FY2010 -01 to Appropriate Funds for the Purpose of Providing Information on "An Initiative Creating an Alaska Anti - Corruption Act (Gag Law)" which will be on the 2010 Alaska Primary Election Ballot. D. Other Items 1. Confirmation of the Assembly Appointment to the Service Area No. 1 Board. 2. *Declaring a Seat on the Planning and Zoning Commission Vacant. 14. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 15. ASSEMBLY MEMBERS' COMMENTS 16. ADJOURNMENT 17. INFORMATIONAL MATERIALS (No Action Required) A. Minutes of Other Meetings 1. Parks and Recreation Committee Regular Meeting of March 23, 2010. 2. Service Area No. 1 Board Regular Meetings of February 12, 2010, March 8, 2010, and Special Meeting of February 8, 2010. 3. Solid Waste Advisory Board Regular Meeting of February 3, 2010, and Special Meeting of March 16, 2010. B. Reports 1. Kodiak Island Borough School District Board of Education Special Meeting of April 5, 2010. Meeting broadcast live over radio station KMXT 100.1 FM and Cablevision station 12. Citizens' Comments and Public Hearing Numbers: Toll Free (800) 478 -5736 and Local 486 -3231. Page 2 of 2 Mayor Selby led the Pledge of Allegiance. KODIAK ISLAND BOROUGH Assembly Regular Meeting April 1, 2010 A regular meeting of the Kodiak Island Borough Assembly was held on Thursday, April 1, 2010, 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. Present were Mayor Jerome Selby, Assembly members Pat Branson, Judy Fulp, Sue Jeffrey, Dave Kaplan, Chris Lynch, and Louise Stutes. Staff members present were Administrative Official Bud Cassidy, Engineering and Facilities Director Woody Koning, Clerk Nova Javier, and Assistant Clerk Jessica Kilborn. BRANSON moved to excuse Assembly member Friend who was absent due to personal leave. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA AND CONSENT AGENDA BRANSON moved to approve the agenda and consent agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY. APPROVAL OF MINUTES A. Regular Meeting minutes of February 18, 2010, and March 4, 2010, were approved under the consent agenda. AWARDS AND PRESENTATIONS Mayor Selby presented the March Student of the Month award to Kayla Christiansen, a junior at Old Harbor School. Mayor Selby proclaimed April 2010 as "Child Abuse Prevention Month" and called upon all citizens to increase their participation in the efforts to prevent child abuse; thereby, strengthening the communities in which we live. Mayor Selby proclaimed April 2010 as "Sexual Assault Awareness Month" and encouraged all residents to support local activities and programs which assist victims by learning more about the pervasiveness of sexual assault in Alaska so we may eliminate this heinous crime. Mayor Selby presented the Kodiak Beautification Awards for a residence to Lee Robbins and Kim Swaneveld, and a business to Ben and Hazel Ardinger, owners of Ardinger's Fine Furnishings and Gifts. Kodiak Island Borough Assembly Minutes April 1, 2010 Page 774 CITIZENS' COMMENTS Lorna Arndt urged the Assembly to consider an ordinance banning fireworks within the borough. Cindy Harrington, Kodiak Area Native Association Child Services Director, thanked the Assembly for its support of the April 2010 proclamations. Mel Stephens, Dave Sundberq, Bill Feda, and Sid Pruitt spoke on Contract No. FY2010 -30. COMMITTEE REPORTS Assembly member Fulp reported on the Kodiak College Council. PUBLIC HEARING A. Ordinance No. FY2010 -07 Amending the Kodiak Island Borough Code of Ordinances Title 8 Health and Safety by Repealing the Existing Chapter 8.25 Solid Waste Collection and Disposal and Enacting a New Chapter 8.25 Solid Waste and Collection and Disposal Section 8.25.10 to Section 8.25.240. JEFFREY moved to adopt Ordinance No. FY2010 -07. The existing Solid Waste Collection and Disposal code that reflected the solid waste collection contract and disposal requirements at the landfill was put into place in 1986. Staff determined the need to bring the code into compliance with the modified solid waste collection contract and disposal requirements at the landfill. The revision would establish policies and procedures to effectively provide enforcement. The old KIBC Chapter 8.25 was being repealed in its entirety and a new Chapter 8.25 was being enacted. Staffs research and proposal took into consideration the Alaska Statutes, codes from other municipalities, and expertise from an attorney specializing in solid waste. The Borough Attorney reviewed the ordinance for compliance and a substituted version of the ordinance was provided based on the changes suggested by the attorney. BRANSON moved to amend Ordinance No. FY2010 -07 by substitution. ROLL CALL VOTE ON MOTION TO AMEND BY SUBSTITUTION CARRIED UNANIMOUSLY: Branson, Fulp, Jeffrey, Kaplan, Lynch, and Stutes. Mayor Selby opened the public hearing. Mel Stephens and Ann Kalcic spoke on Ordinance No. FY2010 -07. Mayor Selby closed the public hearing. BRANSON moved to postpone Ordinance No. FY2010 -07 to the next regular Assembly meeting. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED FOUR TO TWO: Fulp, Jeffrey, Kaplan, and Branson (Ayes); Lynch and Stutes (Noes). Kodiak Island Borough Assembly Minutes April 1, 2010 Page 775 BOROUGH MANAGER'S REPORT Administrative Official Cassidy reported the following: • Manager Gifford was out of town until April 5, 2010. • Engineering and Facilities Director Koning met with the School District to work on specifications for the new high school. MESSAGES FROM THE BOROUGH MAYOR None. UNFINISHED BUSINESS A. Contract No. FY2010 -30 Solid Waste Collection Contract. In May 2009, the Borough issued a request for proposal (RFP) for solid waste and recycling collection services. This RFP was developed based on the Solid Waste Management Plan (SWMP) which was approved by the Assembly on August 21, 2008. Two proposals were received. Borough staff selected the proposal submitted by Alaska Pacific Environmental Services, LLC dba Alaska Waste. Staff determined that the Alaska Waste proposal provided the most responsive approach to reach the Borough's solid waste goals as identified in the SWMP and the Borough's Strategic Plan. Alaska Waste committed to adjust their service delivery as needed to accommodate future progressive steps toward the Borough's solid waste goals and needs. This item was postponed at the regular Assembly meeting of March 4, 2010. The motion before the Assembly was to authorize the manager to execute Contract No. FY2010 -30 with Alaska Pacific Environmental Services, LLC of Anchorage, AK for the Solid Waste Collection Services. Administrative Official Cassidy summarized the discussion held by the Assembly at the work session of March 25, 2010, outlining the changes to the contract. STUTES moved to postpone Contract No. FY2010 -30 to the next regular Assembly meeting. ROLL CALL VOTE ON MOTION TO POSTPONE FAILED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Branson, and Fulp. STUTES moved to amend the motion to execute Contract No. FY2010 -30 with the Residential Collection Option 3. ROLL CALL VOTE ON MOTION TO AMEND FAILED FOUR TO THREE: Branson, Jeffrey, Lynch, and Selby (Noes); Kaplan, Fulp, and Stutes (Ayes). Note: Mayor Selby voted to break the tie. BRANSON moved to postpone Contract No. FY2010 -30 to the next regular Assembly meeting. ROLL CALL VOTE ON MOTION TO POSTPONE CARRIED UNANIMOUSLY: Lynch, Stutes, Branson, Fulp, Jeffrey, and Kaplan. Kodiak Island Borough Assembly Minutes April 1, 2010 Page 776 NEW BUSINESS Contracts None. Resolutions 1. Resolution No. FY2010 -30 Approving a Sublease of a Mobile Home as a Caretaker's Unit by the Kodiak Island Sportsman's Association (KISA) on Tract B Within Lot 1, U.S. Survey 2539 Adjacent to the Salonie Creek Rifle Range. BRANSON moved to adopt Resolution No. FY2010 -30. Written consent of the Assembly was required by section 11 of the ground lease for assignment or transfer of the lease, or any interest in it. This resolution would grant approval for the rental of the existing mobile home owned by KISA to a tenant fulfilling responsibilities as caretaker for the term of the ground lease (expires August 10, 2019). Instead of written Assembly consent, this resolution amended section 11 of the ground lease. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Stutes, Branson, Fulp, Jeffrey, Kaplan, and Lynch. Ordinances for Introduction 1. Ordinance No. FY2010 -08 Rezoning Lot 11A, U.S. Survey 3474 From C- Conservation To RNC -Rural Neighborhood Commercial. KAPLAN moved to adopt Ordinance No. FY2010 -08 in first reading to advance to public hearing at the next regular Assembly meeting. The applicants, Norman and Janice Botz, desired to reestablish the Roads End Bar and Restaurant in Chiniak. The former business was at one time a grandfathered (non- conforming) use in a residential district. KIBC 17.140.050G Nonconforming uses of structures and land states that non - conforming uses that cease to exist for more than a year lose their grandfathered status and "shall not thereafter be used except in conformance with the regulations of the district in which it is located ". The 2008 Comprehensive Plan identified the area of Chiniak (including the applicant's parcel) for future Rural /Mixed Use Commercial /Residential use and the request for a rezone from C- Conservation to RNC —Rural Neighborhood Commercial was consistent with the comprehensive plan. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Branson, Fulp, Jeffrey, Kaplan, Lynch, and Stutes. Kodiak Island Borough Assembly Minutes April 1, 2010 Page 777 Other Items 1. Confirmation of the Mayoral Appointment to the Prince William Sound Regional Citizens' Advisory Council. This item was approved under the consent agenda. The Prince William Sound Regional Citizens' Advisory Council (PWSRCAC) requested that the Borough appoint a representative to the Board of Directors prior to the PWSRCAC's annual meeting in May 2010. This individual would have the opportunity to influence decisions having profound implications for oil transportation safety in Alaska, and for the State's oil spill prevention and response capabilities. Mr. Al Burch served on the PWSRCAC Board of Directors during the preceding term and indicated his desire for reappointment. The Assembly confirmed the mayoral appointment of Mr. Burch to the Prince William Sound Regional Citizens' Advisory Council for a two -year term to expire May 2012. 2. Declaring a Seat on the Solid Waste Advisory Board Vacant. This item was approved under the consent agenda. Ms. Marion Owen submitted a letter of resignation from the Solid Waste Advisory Board on March 18, 2010, for a term to expire December 2010. The Assembly accepted, with regret, the resignation of Ms. Owen from the Solid Waste Advisory Board and directed the Borough Clerk to advertise the vacancy per Borough Code. EXECUTIVE SESSION A. Review of the Respondents to the Legal Service Request for Proposals (RFP). BRANSON moved to convene into executive session to review respondents to the Legal Service RFP which qualified for executive session as a matter which would tend to defame or prejudice the character or reputation of any person (firm). ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Fulp, Jeffrey, Kaplan, Lynch, Stutes, and Branson. Mayor Selby invited the Assembly members, Administrative Official Cassidy, and the Clerk's Office staff into the executive session. Mayor Selby recessed the regular meeting at 8:47 p.m. and convened the executive session. Mayor Selby reconvened the regular meeting at 9:25 p.m. and announced no action was to be taken as a result of the executive session. CITIZENS' COMMENTS None. ASSEMBLY MEMBER COMMENTS Assembly members congratulated the recipients of the Student of the Month and Kodiak Beautification awards. Kodiak Island Borough Assembly Minutes April 1, 2010 Page 778 Assembly member Lynch expressed disappointment over the Assembly's position on the solid waste issues and spoke on the 2.5 year process that included an approved Solid Waste Management Plan (SWMP) that was based on the consultant's expertise and on the community's input. Assembly member Stutes spoke on the solid waste contract and felt the Assembly was working towards the same goals. Assembly member Fulp thanked the Borough Assessor for performing the property assessments and Borough staff for their hard work for the community. She wished everyone a Happy Easter. Assembly member Jeffrey encouraged the Assembly to keep reaching towards the "big picture" goals in regards to Contract No. FY2010 -30. She announced that ComFish would be held April 15 -17, 2010 and the Kodiak Fisheries Advisory Council would meet Friday, April 2, 2010 at 9 a.m. at the Kodiak College. Assembly member Branson agreed that the Assembly was working towards a major change with the way solid waste was handled through Contract No. FY2010 -30. Mayor Selby wished everyone a Happy Easter. Announcements Mayor Selby announced the Assembly and the Kodiak Island Borough School District Board would meet in a Joint Work Session on Tuesday, April 6, 2010, at 7:30 p.m. in the Borough Assembly Chambers. The next Assembly work session would be held on Thursday, April 8, 2010, at 7:30 p.m. in the Borough Conference Room. The next regular meeting was scheduled on Thursday, April 15, 2010, at 7:30 p.m. in the Borough Assembly Chambers. ADJOURNMENT JEFFREY moved to adjourn the meeting. ROLL CALL VOTE ON MOTION CARRIED UNANIMOUSLY: Jeffrey, Kaplan, Lynch, Stutes, Branson, and Fulp. The meeting adjourned at 9:40 p.m. Kodiak Island Borough Assembly Minutes April 1, 2010 Page 779 Nova M. Javier, MMC, Borough Clerk Approved: KODIAK ISLAND BOROUGH ATTEST: Jerome M. Selby, Mayor Kodiak Island Borough Assembly Minutes April 1, 2010 Page 780 TITLE: SUMMARY: KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING ITEM NO: 9.A Resolution No. FY2010 -33 Authorizing the Approval of a Long Term Lease and Material Sales Contract With Brechan Enterprises, Inc. for Tracts B1, B2, B3, and B4 -A, Bells Flats Alaska Subdivision. In June of 2007, the Assembly approved Resolution No. FY2007 -39 declaring surplus to the Borough's need an 84.38 acre portion of Borough land described as Tracts B1, B2, B3, and B4- A, Bells Flats Subdivision for the purpose of resource extraction. Resolution No. FY2007 -39 authorized the Borough Manager to negotiate directly with Brechan Enterprises, Inc. a short term lease to be followed by a long term lease in accordance with relevant provisions of KIBC Title 18 taking into account recommendations from the Planning and Zoning Commission. The Kodiak Island Borough and Brechan Enterprises, Inc. entered into a new lease and material sale agreement for gravel extraction on the "B Tracts" located in Womens Bay on July 1, 2007. The gravel resource excavated from this site is a valuable resource of aggregate for the concrete and asphalt produced and used on the island. The value of this material results from its limited supply. The Kodiak Island Gravel Taskforce investigated, sampled, and tested other aggregate at alternative sites on the road system only to find that the B Tracts provide the best quality material that is readily available (Final Report presented in November 2007). Two one - year extensions followed the 2007 short term lease to allow for completion of a reclamation plan, a storm water pollution prevention plan, and an engineered resource estimate of remaining gravel on site. The current one -year extension of the short term agreement expires on June 30, 2010. The Tong -term lease presented through this resolution calls for a term of 9 years, expiring on December 31, 2019. It incorporates information and requirements contained in the plans, as well as relying on data derived from the resource estimate. The lease has been finalized in the course of a lengthy and thorough negotiation, and is acceptable to the contractor as indicated by the signature. The attached documents include the Lease and Material Sales Contract, Stipulations Regarding Gravel Mining Operation (Exhibit A), 2010 Reclamation Plan (Exhibit B), Summary Portions of the Stormwater Pollution Prevent Plan (SWPPP) (Exhibit C), and the narrative portion of the Gravel Resource Estimate dated December 18, 2009 as prepared by RECON. The complete SWPPP and Gravel Resource Estimate documents are available for review. KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING Staff recommends granting Brechan Enterprises, Inc. a 91/2 year lease to expire on December 31, 2019 for gravel extraction and related processing on the B- Tracts in Bells Flats in accordance with the Lease and Material Sales Contract. APPROVAL FOR AGENDA: � , p eE RECOMMENDED MOTION: Move to adopt Resolution N. FY2010 -33. 1 Introduced by: Manager Gifford 2 Requested by: Manager Gifford 3 Drafted by: Bob Scholze/ Borough Attorney 4 Introduced on: 05/06/2010 5 Adopted on: 6 7 KODIAK ISLAND BOROUGH 8 RESOLUTION NO. FY2010 -33 9 10 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ASSEMBLY 11 AUTHORIZING THE APPROVAL OF A LONG -TERM LEASE AND MATERIAL SALES 12 CONTRACT WITH BRECHAN ENTERPRISES, INC. FOR TRACTS B1, B2, B3 AND 13 B4 -A, BELLS FLATS ALASKA SUBDIVISION 14 15 WHEREAS, in Resolution No. FY2009 -33, the Assembly authorized a renewed short-term 16 lease and material sales contract with Brechan Enterprises, Inc. for Tracts B1, B2, B3 and 17 B4 -A, Bells Flats Alaska Subdivision to expire June 30, 2010. 18 19 WHEREAS, in Resolution No. FY2007 -39, the Borough Assembly declared surplus to the 20 Borough's need and authorized the Borough Manager to negotiate directly with Brechan 21 Enterprises, Inc. a short-term lease for full and true market value of an 84.38 acre portion of 22 borough land described as Tracts B1, B2, B3 and B4 -A, Bells Flats Alaska Subdivision for 23 the purpose of resource extraction; and 24 25 WHEREAS, in Resolution No. FY2007 -40 and in Resolution No. FY2008 -38, the Borough 26 Assembly authorized the Borough Manager to negotiate directly with Brechan Enterprises, 27 Inc., a short-term lease for full and true market value of an 84.38 acre portion of Borough 28 land described as Tracts B1, B2, B3 and B4 -A, Bells Flats Alaska Subdivision for the 29 purpose of resource extraction; and 30 31 WHEREAS, the Borough Manager presented to the Assembly a lease and material sales 32 contract for a one year term which expires on June 30, 2010; and 33 34 WHEREAS, in Resolution No. FY2007 -39, the Borough Assembly authorized the Borough 35 Manager to negotiate directly with Brechan Enterprises, Inc. a long -term lease, which 36 includes a material sales contract, in accordance with relevant provisions of KIBC Title 18 37 and taking into consideration the recommendations of the Planning and Zoning Commission; 38 and 39 40 WHEREAS, completion of a reclamation plan, a storm water pollution prevention plan 41 (SWPPP), and an engineered resource estimate has provided information and requirements 42 for a gravel operation mindful of environment, habitat and use conflicts as well as data 43 regarding gravel remaining on site, all of which have been incorporated to lay the foundation 44 for a long term lease; 45 46 Kodiak Island Borough Resolution No. FY2010 -33 47 NOW, THEREFORE, BE IT RESOLVED, BY THE ASSEMBLY OF THE KODIAK ISLAND 48 BOROUGH that the Borough Manager is hereby authorized to enter into long -term nine and 49 one half (9'h) year lease to expire on December 31, 2019, and for a material sales contract 50 for gravel extraction and related processing in the B- Tracts in Women's Bay with Brechan 51 Enterprises, Inc. 52 53 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 54 THIS DAY OF 2010 55 56 KODIAK ISLAND BOROUGH 57 58 59 60 61 Jerome M. Selby, Borough Mayor 62 63 ATTEST: 64 65 66 67 68 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough Resolution No. FY2010 -33 LEASE AND MATERIAL SALES AGREEMENT THIS LEASE and MATERIAL SALES AGREEMENT is made this first day of July, 2010 by and between the Kodiak Island Borough ( "Landlord" or "KIB "), a borough organized under the laws of the state of Alaska, and Brechan Enterprises, Inc. ( "Tenant" or "BEI "), a corporation incorporated under the laws of the state of Alaska. For and in consideration of the covenants, rents and demises, and upon the terms and conditions set forth in this agreement, the parties agree as follows: 1. Premises. Landlord hereby lets, leases and demises to Tenant the real estate particularly described as follows: Tracts B1, B2, B3 and B4A, Bells Flats Alaska Subdivision, generally according to Plat 69 -4 (as to Tract B), located in the Kodiak Recording District, Third Judicial District, State of Alaska. Also known as 12247, 125361 and 12583 Middle Bay Drive and 12027 Bells Flats Road ( "the premises "). Tenant, upon paying the rents, and performing all of the terms and covenants required by this agreement, shall peaceably and quietly enjoy the premises subject nevertheless, to the terms of this agreement. 2. Term of Lease. The term of this agreement shall be for the period of nine and one - half (9.5) years following the commencement of the term, unless sooner terminated as provided in this agreement. The lease term shall commence on July 1, 2010 ( "the anniversary date "), and shall expire at 5:00 P.M., prevailing Alaska Time on December 31, 2019. Subject to being approved by the KIB Assembly ( "the Assembly "), this agreement may be renewed for two additional five year terms. Tenant must give written notice of its desire to renew this agreement not less than one year prior to the end of the then current term. 3. Rental. In consideration of the demise and leasing of the premises Tenant agrees to pay to Landlord as rental for the premises an annual sum adjusted each June 1 for the following year determined as follows: the prime rate plus 2.0% (as an indication of conventional commercial mortgage rate), but not less than six percent (6 %), of the appraised value ($460,000). Rental will be paid in advance, on or before the first day each month of the lease term. All rent shall be paid to the Landlord at 710 Mill Bay Road, Kodiak, Alaska 99615, or at such other place as Landlord may designate from time to time in writing. 4. Unit Price for Materials. Consistent with KIBC Chapter 18.60, BEI is also granted the right to purchase gravel by this agreement. BEI shall bear the cost of and shall provide the volume determination according to KIBC 18.60.040. The volume determination shall be in units of tons which shall be calculated at the rate of one and 7/10 (1.7) tons per cubic yards. Upon execution of this agreement, BEI shall pay to KIB $1,000 as required by KIBC 18.60.050. Lease and Material Sales Agreement Page 1 of 8 BEI shall pay for this gravel the unit price as determined by the Assembly under KIBC 18.60.060 (the "royalty "). BEI shall submit to KIB on an annual basis and not less than thirty days prior to the anniversary date of this agreement, the volume determination of the gravel removed from the premises and the royalty payment. KIB reserves the right, but is not obligated to make its own volume determination of the gravel removed from the premises. In the event BEI fails to pay for the gravel forty five (45) days after the anniversary date of this agreement, a penalty of 10% of the amount due shall be assessed. Interest shall accrue on the amount due including the penalty at the rate of 12 percent per year from the due date. 5. Alteration of Premises. Except for Tenant's gravel mining operations which are to be conducted consistent with this lease, Tenant shall not make any alterations, additions, or improvements to the premises without first obtaining the written consent of the Borough manager or designee. Any such alterations, additions and improvements consented to by the Borough manager or designee shall be made at Tenant's expense and only after Tenant has secured all required governmental permits. Tenant shall hold Landlord harmless from all liability and liens resulting from the approved work. All alterations, additions and improvements are subject to the terms of KIBC 18.40.140 and Section 3.1.3 (Equipment/Debris Removal) of the Reclamation Plan. 6. Use of Premises. The premises shall be used as support for Tenant's extraction, remanufacturing and removal of gravel from the premises (generally referred to as "gravel mining ") and for no other purpose, without the prior written consent of Borough manager or designee. Tenant shall not use or permit the premises or any part thereof to be used for any purpose in violation of any borough, state, federal or other governmental law, ordinance, rule or regulation. Tenant shall comply with all laws affecting the property and its gravel mining operation. Tenant agrees that it, together with all other persons entering and/or occupying the premises at its request or with its permission, will abide by, keep and observe all reasonable rules and regulations which Landlord may make from time to time for the protection of the surrounding habitat and residential areas. The violation of any such rules and regulations shall be deemed a material breach of this agreement by Tenant. Tenant shall use, operate and/or install any electrical or mechanical equipment, machinery, or mechanical devices on the premises in compliance with the highest standards applicable to the premises, or to the use, operation, or installation of such equipment, machinery or devices, generally recognized by the profession or industry in which Tenant is engaged. Tenant expressly agrees to comply with the list of stipulations on attached Exhibit A, which are incorporated into and made part of this agreement. 7. Taxes. Tenant shall pay any and all real property taxes based on its possessory interest in the premises, taxes levied on personal property and trade or other fixtures on the premises, severance taxes associated with its resources extracted or produced from the premises, and license and excise fees and occupation taxes covering business conducted on the premises. Lease and Material Sales Agreement Page 2 of 8 8. Utilities. Tenant shall provide at its expense all utilities and services used on the premises. Landlord shall not be liable for any loss or damage caused by or resulting from any variation, interruption or failure of any utilities or services. 9. Maintenance and Repairs. As this is a lease of land, Landlord has no duty to maintain or repair the premises. Tenant shall, at its expense, maintain and repair the premises. Tenant shall commit no waste of any kind in or about the premises, and Tenant shall pay for all damage to the premises caused by Tenant's misuse or neglect of the premises. Landlord shall not be responsible or liable at any time for any loss or damages to Tenant's equipment or other personal property or to Tenant's business except to the extent attributable to Landlord's negligence. Landlord shall not be responsible or liable for any defect, latent or otherwise, in the premises. Nor shall Landlord be responsible or liable for any injury, loss or damage to any person or to any property of Tenant or other person caused by or resulting from bursting, breakage or by or from leakage, stream or snow or ice, running or the overflow of water or sewerage in any part of said premises, or the surrounding area, or for any injury or damage caused by or resulting from acts of nature or the elements, or for any injury or damage caused by or resulting from any defect in the operation or use of any of the premises by any person or by or from the acts or negligence of any occupant of the premises, unless Landlord itself is negligent. 10. Fire and Other Casualty. As this is a lease of land, Landlord has no duty to protect the premises from damage by fire or other casualty. Tenant acknowledges that it must protect its machinery and equipment from damage by fire or other casualty. There will be no reduction in rent in the event that Tenant's machinery and/or equipment is damaged by fire or other casualty. 11. Subletting and Assignment. Tenant shall not sublet the premises, or any part thereof, or assign this lease or any part thereof, nor shall this agreement be assigned in whole or in part by operation of law or through any court proceedings, without the prior written consent of Borough Manager or designee to such subletting or assigning; any such assignment or sublease without Borough Manager or designee's written consent shall be void. Any merger, consolidation, or dissolution to which Tenant is a party, or any change in ownership of a majority of its voting stock outstanding, shall constitute an assignment of this lease for purposes of this paragraph. 12. Indemnification. Tenant shall defend and indemnify Landlord from and against any and all claims, liabilities, or losses of any type arising out of Tenant's occupancy and use of the premises together with reasonable attorney's fees and all costs and expenses incurred by Landlord in negotiating, settling, defending and otherwise acting as a result of such claims. Landlord shall promptly notify Tenant of any loss or claim and shall tender defense of such claim to Tenant prior to negotiating, settling, or defending such claim. 13. Insurance. Tenant, at its sole expense, shall keep or cause to be kept in force for the mutual benefit of Landlord and Tenant comprehensive broad form general public liability Lease and Material Sales Agreement Page 3 of 8 insurance coverage 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. This insurance shall provide coverage of at least $2,000,000 aggregate, $1,000,000 per occurrence, $2,000,000 for products /operations and $1,000,000 for personal and advertising. Landlord shall be an additional named insured in such policy or policies. Such policy or policies shall be written by a responsible insurance company or companies satisfactory to Landlord and licensed to do business in 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 Landlord that might otherwise result in a forfeiture of the insurance; (2) the insurer waives the right of subrogation against Landlord; (3) the policies are primary and noncontributing with any insurance that may be carried by Landlord; and (4) they cannot be cancelled or materially changed except after thirty (30) days notice by the insurer to Landlord. Upon the signing of this Agreement, certificates of insurance showing compliance with the foregoing requirements shall be furnished by Tenant to Landlord for approval. Maintenance of insurance and the performance by Tenant of the obligation under this paragraph shall not relieve Tenant of liability under paragraph 13, above. If Tenant fails or refuses to procure or maintain the required insurance, or fails to provide Landlord with the required proof of insurance and that it is in force and paid for, Landlord may, at Landlord's election and without notice, procure and maintain such insurance, or may terminate this agreement without liability upon written notice to Tenant. Any premiums paid by Landlord shall be treated as an added fee due from Tenant with interest at twelve per cent (12 %) per year, to be paid on demand. 14. Liens. Tenant will not permit any mechanics', laborers' or material men's liens to stand against the premises for any labor materials furnished to Tenant or claimed to have been furnished to Tenant, or to Tenant's agents in connection with work of any character performed or claimed to have been performed on the premises or improvements by or at the direction of sufferance of Tenant; provided, however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give to Landlord such reasonable security as may be demanded by Landlord to insure payment of such lien or such claim of lien. Tenant will immediately pay any judgment rendered with all proper costs and changes and shall have such lien released or judgment satisfied at Tenant's own expense. The foregoing provisions respecting liens shall apply to all liens, of any kind or nature, asserted against the premises, including liens arising out of, incident to, or connected with the use and occupation of the premises by Tenant. 15. Default. If Tenant at any time during the term of this lease (and regardless of the pendency of any bankruptcy, reorganization, receivership, insolvency or other proceedings, in law, in equity or before any administrative tribunal, which have or might have the effect of preventing Tenant from complying with the terms of this lease) shall: (a) Fail to make payment of any installment of rent, royalty or of any other sum herein specified to be paid by Tenant, and Tenant fails to cure such default within ten (10) days after such failure to make payment: or Lease and Material Sales Agreement Page4of8 (b) Fail to observe or perform any of Tenant's other covenants, agreements or obligations required by this agreement or the attached exhibits (the list of stipulations (Exhibit A), the Reclamation Plan (Exhibit B), and the Stormwater Pollution Prevention Plan (Exhibit C) all of which are incorporated herein by reference), and if within thirty (30) days after Landlord shall have given to Tenant written notice specifying such default or defaults, Tenant shall not have commenced to cure such default and proceed diligently to cure the same; or (c) Fail to mine gravel from the premises for any twelve (12) months period: (d) If Tenant has filed a Petition under Chapter 11 of Bankruptcy Act, or a voluntary petition under any other provision of the Bankruptcy Act, or if Tenant finally and without further possibility to appeal or review: (1) is adjudicated as bankrupt or insolvent; or (2) has a receiver appointed for all or substantially all of its business or assets on the ground of Tenant's insolvency; or (3) has itself appointed as a debtor -in- possession; or (4) has a trustee appointed for it after a petition has been filed for tenant's reorganization under the Bankruptcy Act of the United States or any future law of the United States having the same general purpose; or (5) if Tenant shall make an assignment for the benefit of creditors then in any such event Landlord shall have the right at its election, then or at any time thereafter, and while such default, defaults or events shall continue, to give Tenant notice of Landlord's intention to terminate this agreement and all Tenant's rights hereunder, on a date specified in such notice, which date shall not be less than ten (10) days after the date of giving of such notice, and on the date specified in such notice, the term of this agreement and all rights granted Tenant hereunder shall come to an end as fully as if this agreement then expired by its own terms, and Tenant hereby covenants peaceably and quietly to yield up and surrender to Landlord the premises, and to execute and deliver to Landlord such instrument or instruments as shall be required by Landlord as will properly evidence termination of Tenant's rights hereunder or its interest therein. In the event of termination of this agreement as in this paragraph provided, Landlord shall have the right to repossess the premises and such structures, buildings, improvements and equipment, either with process of law or through any form of suit or proceeding, as well as the right to sue for and recover all rents and other sums accrued up to the time of such termination, and damages for rent not then accrued. Landlord shall also have the right, without resuming possession of the premises or terminating this agreement, to sue for and recover all rents and other sums, including damages, at any time and from time to time accruing hereunder. 16. Notices. Any and all notices required or permitted under this agreement, unless otherwise specified in writing by the party whose address is changed, shall be mailed, certified or registered mail, or delivered, to the following addresses: LANDLORD: Kodiak Island Borough 710 Mill Bay Road Kodiak, Alaska 99615 Lease and Material Sales Agreement Page 5 of 8 TENANT: Brechan Enterprises, Inc. 2705 Mill Bay Road Kodiak, Alaska 99615 Any such notices shall be deemed effective on the date of mailing or delivery. 17. Costs Upon Default. In the event either party shall be in default in the performance of any of its obligations under this agreement or an action shall be brought for the enforcement thereof, the defaulting party shall pay to the other all the expenses incurred therefor, including a reasonable attorney's fee. In the event either party shall without fault on its part be made a party to any litigation commenced by or against the other, then such other party shall pay all costs and reasonable attorney's fees incurred or paid by such party in connection with such litigation. 18. Rights or Remedies. Except insofar as this is inconsistent with or contrary to any provision of this agreement, no right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder, or now or hereafter existing at law or in equity or by statute. 19. Waiver and Forbearance. Except to the extent that Landlord may have otherwise agreed in writing, no waiver by Landlord of any breach by Tenant of any of its obligations, agreements or covenants hereunder shall be deemed to be a waiver of any subsequent breach of the same or any other covenant, agreement or obligation. Nor shall any forbearance by Landlord to seek a remedy for any breach of Tenant be deemed a waiver by Landlord of its rights or remedies with respect to such breach. 20. Inspection. Landlord shall at all reasonable times during Tenant's business hours have access to the premises for the purpose of inspection. Landlord shall also be entitled to put "to lease" or "for lease" signs in and about the premises, and to show the premises to prospective tenants, during the last sixty (60) days of this agreement term and any extended term, and during any period of time after Landlord has given Tenant a notice of intention to terminate under paragraphs 3 or 16 of this agreement. 21. Notices of Nonresponsibility. Landlord may enter the demised premises at any time for the purpose of posting notices of nonresponsibility. 22. Successors in Interest. This agreement shall be binding upon and inure to the benefit of the respective heirs, successors and assigns of the parties hereto. 23. Holding Over. In the event that Tenant holds over at or after the end of the term, the tenancy shall be deemed a month -to -month tenancy commencing on the first day of the holdover period. 24. Signs. Other than "no trespassing" signs and signs necessary for compliance with regulatory requirements, Tenant agrees that no other sign or signs shall be installed on the demised premises without the prior written consent of Landlord. Lease and Material Sales Agreement Page 6 of 8 25. Memorandum of Lease. Tenant agrees that it will not record this agreement. At the request of either Landlord or Tenant, the parties shall execute a memorandum lease for recording purposes in lieu of recording this agreement, in such form as may be satisfactory to their respective attorneys. 26. Excuse for Nonperformance. Either party hereto shall be excused from performing any or all of its obligations hereunder with respect to any repair and construction work required under the terms of this agreement for such times the performance of any such obligation is prevented or delayed by an act of God, floods, explosion, the elements, war, invasion, insurrection, riot, mob violence, sabotage, terrorist activity, inability to procure labor, equipment, facilities, materials or supplies in the open market, failure of transportation, strikes, lockouts, action by labor unions, or laws or order of governmental agencies, or any other cause whether similar or dissimilar to the foregoing which is not within the reasonable control of such party. 27. Construction of Lease. This agreement shall be governed by and construed in accordance with the laws of the State of Alaska. Words of gender used in this agreement shall mean and include any other gender, and singular shall mean and include the plural and the plural the singular, where applicable, and when the sense requires. 28. Performance Bond. As required by KIBC 18.60.070 a performance bond is required to protect Landlord's interest and ensure satisfactory compliance with this agreement and the Reclamation Plan (Exhibit B). As noted in section 4 of Exhibit B, the amount of the bond may be reduced during the term of this lease. The form of this bond is attached as Exhibit D. 29. Condemnation. If the Premises shall be taken or condemned for any public purpose to such an extent as to render the Premises untenantable, this agreement shall, at the option of either party, cease and terminate as of the date when possession is taken. All proceeds from any taking or condemnation of the Premises shall belong to and be paid to Landlord, and Tenant shall have no right to any portion of the amount that may be awarded or paid to Landlord as a result of such taking. Tenant shall be entitled to pursue any and all damages from the condemner personal to Tenant resulting from condemnation. 30. Subordination and Nondisturbance. This agreement and all of the rights of Tenant hereunder are and shall be subject and subordinate to the lien of every deed of trust and every mortgage now or hereafter placed on the demised premises or any part thereof (except the property of Tenant), and to any and all renewals, modifications, consolidations, replacements, extensions or substitutions of any such mortgage or deed of trust ( "encumbrances "). Lease and Material Sales Agreement Page 7 of 8 IN FITNESS WHEREOF, the parties have hereunto set their hands and seals this A(� dayof 4v ,2010 SUBSCRIBED AND SWORN to before me ichael Martin this Zo day of ,4, / , 2010, at Kodiak, Alaska. OFFICIAL SEAL IMELDA RODRIGUEZ NOTARY UL -STATE OF ALASKA My Comm. Expwes `/ /- 13 ATTEST: Borough Clerk, Nova Javier Lease and Material Sales Agreement Page 8 of 8 TENANT: Brechan Enterprises, Inc. By: Michael Martin Its President Public iia4 for Alaska My Commission expires LANDLORD: THE KODIAK ISLAND BOROUGH Borough Manager, Rick Gifford SUBSCRIBED AND SWORN to before me by Rick Gifford this day of 2010, at Kodiak, Alaska. Notary Public in and for Alaska My Commission expires: LEASE AND MATERIAL SALES AGREEMENT Stipulations Regarding Gravel Mining Operation EXHIBIT A 1. For all public works contracts for the Kodiak Island Borough, the City of Kodiak, or other State or Federal agencies that are subject to competitive bidding, Tenant shall (a) quote materials pricing to bidders for the purpose of allowing such bidders to prepare their bid proposals ( "the quoted price ") and (b) thereafter sell to successful bidders materials at the quoted price. 2. Tenant acknowledges that Landlord has installed three water monitoring wells identified as KDH09 -07, -08 and -09. Tenant further acknowledges that it knows where these wells are located and will preserve and protect them. 3. Tenant acknowledges that the gravel to be mined from the premises shall be used primarily for the production of concrete and asphalt. 4. Tenant acknowledges the importance of mining gravel from the ponds to the deepest depth practical. In order to achieve this, mining of the spit must retain a minimum one hundred (100) foot spit width to separate the two ponds and facilitate efficiency of future land based dragline operations for excavating the bottom of the ponds. Final removal of the spit itself will proceed only with approval of the Borough Manager or designee. 5. Tenant shall coordinate with all appropriate regulatory agencies regarding its extraction and reclamation activities to assure regulatory compliance and minimize potential impacts of its activities. 6. In addition to the terms of the reclamation plan, Tenant shall comply will the following performance standards: a. Buffer Area. Buffer zones as described in the March 1, 2007 BEI letter, and as shown on exhibit A to that letter, shall be maintained and kept in a topography that blends smoothly into the surrounding area. b. Overburden. Overburden shall be stripped, stockpiled, placed, and leveled in the cleared portion of the designated buffer area or transported off site. Existing berms will remain in place for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, berms will conform to the reclamation plan. c. Trees. No brush, trees, stumps, or parts of trees shall be placed in the excavated area or buffer area. Exhibit A Page 1 of 2 d. Access. Ingress and egress shall be limited to existing points on Middle Bay Drive. Tenant shall not change its point of ingress and egress to the premises without the prior written consent of the KIB Manager or designee. e. Hours of Operation. Tenant shall limit hours of operation on the premises to 7:00 a.m. to 7:00 p.m. Monday through Saturday. Only routine maintenance on equipment is allowed on Sundays between 7:00 a.m. to 7:00 p.m. There will be no work of any kind on Memorial Day, July 4` Labor Day, Thanksgiving and Christmas. f. Haul Road. It is the intent of this agreement to keep loaded trucks off of Middle Bay Drive as much as possible. For purposes of this agreement, Tenant shall operate its vehicles at no more than twenty -five (25) miles per hour on the following roads: A. Loaded trucks shall use Middle Bay Drive at its intersection with Bells Flats Road, then Bells Flats Road and South Sargent Creek Road while traveling between the premises and Chiniak Highway. C. Also included as a designated haul road is Salmonberry Drive fronting Block 3, Tract A, Bells Flats Alaska Subdivision. If there is a temporary closure, by reason of emergency, or for repair or improvement requiring use of an alternative route, BEI shall notify the Borough manager or designee of the reason and duration, which situation will not create liability for Landlord. g. Dust Control. In periods of dry weather when the haul roads become dusty, Tenant shall work with the Womens Bay Service Area to reduce the dust created by its vehicles. A dust palliative will be applied annually. Relative to its operations on the premises, Tenant shall comply with Alaska Department of Environmental Conservation regulations regarding fugitive dust specifically, and air quality control in general. h. Hazardous Materials. The premises shall not be used for the storing of any hazardous material, as defined in AS 29.35.590(6), beyond what is placed within the tanks on Tenant's trucks, dozers and excavators. Exhibit A Page 2 of 2 B. Unloaded trucks may use Middle Bay Drive. RECON, LLC 2010 Reclamation Plan B- Tracts Gravel Pit Kodiak, Alaska Isaac Rowland 04/20/2010 n nECO ► N Rowland Engineering Consultants Sieve R &.. 4 PE !8/ West AragirAee %ler, AI 9960 907- 946.t1D Moe 907403006 Cell stereQeaaok -set Reclamation plan developed by RECON, LLC on behalf of Kodiak Island Borough for the B- Tracts Gravel pits located at Bell Flats, Kodiak Alaska ATTACHMENT B CONTENTS 1.0 INTRODUCTION 1 -2 1.1 Location 1 -2 1.2 Description of Site 1 -2 2.0 OPERATIONS 2 -3 2.1 Historic Operations 2 -3 2.2 Planned Operations 2 -3 2.3 Area to be Mined 2 -3 2.4 Quantity to be Mined 2 -4 3.0 RECLAMATION 3 -4 3.1 Landowner Requirements 3-4 3.1.1 Separation from Russian Creek 3-4 3.1.2 Diversion Channel 3-4 3.1.3 Equipment/Debris Removal 3 -5 3.1.4 Pond Reclamation 3 -5 3.1.5 Re- contouring 3 -6 3.2 Reclamation Schedule 3 -6 3.3 Reclamation Equipment 3 -7 4.0 BONDING 4 -7 5.0 SUMMARY 5 -8 ATTACHMENTS Fig 1 — General Location of B- Tracts Pit. Fig 2 — 2006 Property Survey Fig 3 — Site Map Fig 4 — Reclaimed Site Configuration Fig 5 — Diversion Channel Cross Section Fig 6 — Pond Overflow Drawing Project No.: 20 April 2010 TOC I 1.0 INTRODUCTION 20 April 2010 This reclamation plan was prepared by RECON, LLC on behalf of Kodiak Island Borough (KIB) and covers the reclamation of the B- Tracts material site located in Bell Flats Subdivision, Kodiak Alaska. The land on which the site is located is currently owned by KIB and leased to Brechan Enterprises (the operator). This reclamation plan will be filed by Brechan Enterprises as required by Alaska Statute 27.19. This reclamation plan is intended to cover the operations of the pit between 2010 and 2020, corresponding to the term of the lease agreement. This document covers the DNR reclamation requirements as well as additional requirements by the landowner. 1.1 Location The B- Tracts material site is located in the Bell Flats Subdivision in the Russian Creek drainage, two miles from the head of Womens Bay. Please see Fig. 1 for a map of the general location of the site. 1.2 Description of Site The site is immediately adjacent to the north limit of the current Russian Creek floodplain. Material extracted from the site is of alluvial origin and consists of gravel with some sand. The majority of the mined area now consists of two freshwater ponds with a combined extent of approximately 34 acres. The ponds are located on four properties owned by KIB and known as Tracts B -1, B -2, B -3, and B -4A of the Bell Flats Subdivision. Total area of the four tracts is approximately 84 acres. See Fig. 2 for the location of the property lines relative to the mining operations. KIB currently mandates a 200 ft setback for mining operations adjacent to the road. Historical mining methods are reported to have included surface stripping and loading, underwater mining using excavators, tracked dragline and fixed boom dragline. Given setback requirements and terrain constraints, roughly 54 acres of the total 84 acres contained in the B- Tracts site are available for material extraction. Page 1 -2 2.0 OPERATIONS 2.3 Area to be Mined 20 April 2010 Page 2 -3 2.1 Historic Operations Tracts B -3 and B-4 have historically been mined by Brechan Enterprises since the 1960's. Excavation at the pit has consisted of surface loading, a tracked crane with clamshell bucket, and a mobile dragline. Current excavation is with a hydraulic excavator mining above and below the water table. A bathymetry survey completed by Kodiak Land Surveyors (KLS) in 2006 showed the bottom elevation of the pond is highly variable with the pond depth ranging from 15 -46 ft. The south pond located on the B -1 and B -2 Tracts has currently been mined using only a hydraulic excavator and is overall of a shallower depth than the B -3 and B -4A Tracts pond. The depth of the pond varies between 11 and 20 ft, with the majority of the pond being >15 ft. 2.2 Planned Operations The majority of the mined area now consists of two freshwater ponds with a combined extent of approximately 34 acres. The ponds are currently divided by a narrow section of land on which mining and gravel screening operations are based. Extraction of gravel from the site will be accomplished using a dragline or dredge for mining below the water table. Near surface gravels will be removed using a hydraulic excavator. The section of land dividing the ponds will remain during the mining of the pond bottoms. Once the ponds have been mined to the maximum attainable depth, the gravel screening operation will be re- located off of the B- Tracts property and the ponds connected. At this point, the remaining original ground between the ponds will be mined to recover the available gravels. The area to be mined will vary by year and local demand. In general the majority of mining will consist of excavation of the pond bottoms. Near the end of the mine life, the ponds will be combined and the final configuration of the pit will consist of a single pond covering approximately 52 acres. Final depth of the pond will vary up to 46 ft. See Fig. 4 for reclaimed site drawing. 20 April 2010 RECON ► 3.0 RECLAMATION IF 2.4 Quantity to be Mined Quantity to be mined would vary from 5,000 cy /yr to 89,000 cy /yr with the average quantity estimated at 35,000 cy /yr based on historic local demand. Beginning in 2010, the expected total quantity to be removed from the material site is 350,000 cy. Upon completion of operations, or prior to the end of the lease agreement with KIB, the operator will complete the site reclamation as specified in this plan. 3.1 Landowner Requirements In addition to the general requirements specified in the ADNR Material Site Reclamation Plan, the Kodiak Island Borough (the landowner) has specified these additional requirements: 3.1.1 Separation from Russian Creek Separation between Russian Creek and the B- Tracts property should be maintained at all times during operation of the material site. Any maintenance of the existing berms required to maintain this separation will be the responsibility of the operator. On completion of operations, the separating berm will be left in a stable state to insure the long term stability of the Russian Creek channel. 3.1.2 Diversion Channel The current water diversion channel located along the southeast limit of the property will be maintained. The channel will be stabilized and reclaimed during the 2010 -2011 summer work seasons. Permitting for this work will be coordinated by the State of Alaska Department of Natural Resources, Division of Coastal & Ocean Management. 1. The gravel banks will be sloped to a minimum of 2:1 unless heavily vegetated. Existing overgrown topsoil piles on the SE bank to remain undisturbed as much as practically possible. 2. The banks will be armored with Class I rip -rap to a minimum depth of 18" to prevent ongoing erosion. Riprap will extend from the bottom of the channel to 24" above normal water levels. Total riprap placed below the ordinary high water level is estimated to be 500 yd Page 3-4 20 April 2010 3. The berm between the channel and pit and will be raised and re- enforced. The elevation above the pond built up to a minimum of 48 ". Separation between the pond and the channel will be a minimum of 20 ft. The separation will be flattened and graded for future equipment access. See Fig. 5 for a typical cross section of the channel and pond separation. 4. The culvert and existing gravel barrier connecting the ponds to the diversion ditch will be removed and the site incorporated into the separation berm. 5. At the end of the lease agreement, the large culvert currently used to cross the diversion ditch channel will be removed unless express permission is granted by an authorized KIB representative. 3.1.3 Equipment/Debris Removal The site currently contains miscellaneous construction debris and unused equipment as well as office and maintenance buildings. As part of the site reclamation the following conditions must be met: 1. All equipment not being actively utilized will be removed from the site. 2. All buildings not being actively utilized will be removed from site. 3. All trash and debris will be removed from site. 4. All contaminated soils will be cleaned up and disposed of in an appropriate and timely manner. 5. It is a requirement of the land owner that the site be kept clean and free of any debris, unused equipment, and contaminated soils during operations. As such, this portion of the reclamation is to be completed during 2009/2010. Buildings, signage, gates and remaining equipment will be removed at the end of the mine life unless specific permission is granted by an authorized KIB representative. 3.1.4 Pond Reclamation At the end of mining, the two currently existing ponds will be combined as a single pond. The following measures will be completed to stabilize the ponds: 1. The pond shores will be graded to a water entry slope of 3:1 or flatter. 2. Slopes below waterline shall be no steeper than 2:1. Page 3 -5 4. The shorelines will be covered with topsoil and allowed to naturally re- vegetate. 3. Where practical, the shoreline will be made undulating and irregular to simulate a natural contour and provide potential fish habitat. 5. The high water overflow will consist of a rip- rapped spillway with an outflow elevation approximately 18" above the existing creek level. See Fig 6 for a cross section of the outflow design. 3.1.5 Re- contouring The overall site will be re- contoured to a natural and stable state. Specific measures required by the landowner include: 20 April 2010 1. All slopes, piles and banks will be reduced to a maximum slope of 3:1. 2. Topsoil stockpiles currently located on the perimeter of the pit will be graded over the exposed gravel surfaces. The topsoil will be compacted using a tracked dozer to reduce erosion and allow a re- growth of native vegetation. Exceptions to the above general conditions are as follows: 1. Older piles located to the SE of the existing diversion ditch to remain undisturbed. 2. Slopes above the freshwater springs located at the south end of the property to remain undisturbed. 3. Specific exceptions may be granted by an authorized KIB representative during the reclamation process. 3.2 Reclamation Schedule The mine life for this operation is currently assumed to be 10 years. For the majority of this time, the entirety of the site will be utilized. Ongoing reclamation will consist of stabilization of the by -pass creek channel and removal of un -used equipment and debris. The conformance schedule is as follows: 2010 -2011: 1. Removal of debris, excess equipment, any contaminated soils from site. 2. Stabilization of diversion channel as outlined in Section 3.1.2 Page 3 -6 2020 or End of Operations: 1. Reclamation of pond shore as outlined in Section 3.1.4. 2. Removal of remaining equipment and buildings. 3. Re- contouring of disturbed ground around the pit perimeter. 4. Placement of topsoil over re- graded ground. 5. Natural vegetation will be allowed to propagate on the site. 3.3 Reclamation Equipment The operator proposes the following reclamation equipment fleet for the reclamation of the B- Tracts site: 2 — 320 series excavators or similar 1 — D6 dozer 1 — D9 dozer 2 — 10 yd trucks 4.0 BONDING The operator of the site will be required to post a reclamation bond with the Kodiak Island Borough. The bond will be in an initial amount of $250,000. On completion of the diversion ditch bank reclamation and stabilization to the satisfaction of KIB, the bond will be reduced by $50,000. On completion of the removal of unused equipment, contaminated soils, and construction debris to the satisfaction of KIB, the bond will be reduced by $50,000. The bond will remain at no less than $150,000 for the remainder of the lease period. 20 April 2010 Page 4 -7 5.0 SUMMARY 20 April 2010 Page 5 -8 RECON ► This reclamation plan was developed by RECON, LLC on behalf of Kodiak Island Borough. This plan covers the reclamation of the B- Tracts gravel pit during the time period of 2010 through 2020. Responsibility for completion of this plan will rest with Brechan Enterprises, Inc. Please contact Isaac Rowland with RECON, LLC at (907) 322 -5545 with any questions. LNNRED STATES DEPARTMENT Of THE INTERIOR GEOLOGICAL SURVEY to 2? 22 21 • 29 0 31:10 U S 1•150• Sr s Orr .M.., oaa..• *Mr Warr Mar rarer ma Nor. r MO sr i�M w rit t _ I. fir - paler n.. a Do 1 • nn al-- -Iran. — 0r13 Yr rm. rarer and *I Seer ro — 11,7 r S rr rrrrr tM - d err Wrr rrr Y .o* • w *Orr M Owner row rrrr.7 Moro Maar Mar/ 4 tWW r r.I nor. 4* ros rim tr. .r1^ *err r r+r t v rrr r... •r Fig 1 - B- Tracts Location VI I n• T US COAST GUARD ( 1071 T - � 13 13 • r , r aei PROVISIONAL MAP rwr..3l barter IM. errr. Are es 4 de. d pheerweeDS A. or= r r4 rr. .rrrrrtrs art Orrr.* • ; B`Tracts eiravet.Pit tocation a . • 1 �a � rr 4 fe t \ r a N, ar 20 R V Enf2S 39 KAI/ IRS re rw� 00•101/1 su93 • rum a.. Yr n, W or • . "'a' ro as art ..sr a rr arm tart NM War. rtrerfr ISM Ir• Oar. Or Ka W3 rill O(LL 1 CrX0 SUMS MAMMA/ MARS 0131 Arr. COW MOD OM b *MO* WWII'. •• �E d • :R: J KOOIAK LC.2I NW QUADRANGLE. A A*KA- KOOIAK ISLAND BOROUGH 13SSSOSCALE SERIES (TOPOGRAPHIC) 40.4 0 / • OT# / +4 R / 4,' tiJ / ?•, . r 4 0* * Mgr OOIII•Ir AND 11194 • tom eC —ra M1rltr Maar KOOIAK SC-2) NW. ALASKA PRO%ISIIXVAI. EDITION 1931 VDE 1 L MDt9 anlfte awe (Mg n9•wrr /MOM Hd al N 9NIA3A2111G aNd1 Nvlao' 138 —S1N I/I :'oN 3aa4S 900Z/L AHdYNO0d01 ONf10M0 0Nl1SIX3 :a4ualuo0 3 SIY d ST139 3021f10S N00N Z Ad :,afoJd VDDZ/L f aro 7 R rIII.ro Jf %.rZ 101.4 17/IWI -1.0HII ZINGS allw 9/L = d 3lVOS dVW ALINIOIA a w I1091. r ass • AMON 1••• w MI/TM IBM w w• MUM ruleool Ai 3 w11 91 •!'[10 arrl 11191•! L - �wO�•i•M w F- MowK NNE wls Fig 3 - Kodiak B- Tracts Gravel Pit — Site Map 1,1111 ry L31“ Jun :;,ac 0 p Maint. Shop Groundwater Springs Pit 2 Material Processing and Stockpile Area Imago m 2009 D mIalGlobe 57 "41'57. N 152'36'08.64" W elev 17 m Ov e0o \ Stoc.0\es Pit 1 A Rrn Tn 0 - f r'Frl - 52 Acres ZO` 2009GoogIe dyo at 821 m • TYPICAL CROSS SECTION OF DIVERSION CHANNEL j T�. 20' / y � ,; : ' /// . , . ›.‘ 21 Slope Slope 4 ft Berm Height � DIVERSION CHANNEL o� •� , ;P2:1 „ 443%?4*Airrnum ♦ 20' SEPARATION BERM Notes: 1.) Channel width may vary from 15 -30 ft or as specified by ADF &G 2.) The separation berm between channel and the ponds be greater than 20' as needed. EXISTING POND DATE R� Rowland Enpineerinp ConsuRann Stem R Rowland. PE B- Tracts Gravel Pit DRAFT TYPICAL SECTION - CHANNEL D\iE: PROJECT W DESIGNED DY. Wt CHECNED BY SRR CROSS SECTION OF POND OUTFLOW 24.0' 6.0' Normal Channel 24" OF CLASS 2 RIPRAP PLAN VIEW OF OUTFLOW REV '1E GESrnw1wM ORME: Rowland enur K cawrt ro a...ale i.e. PC B- Tracts Gravel Pit OUTFLOW CHANNEL DESIGNED RV CHECKED ar ullare seer . swsl 2 2 ERR PROEM ND. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan Travis/Peterson Environmental Consulting, Inc. (TPECI) developed this storm water pollution prevention plan (SWPPP) in accordance with the Environmental Protection Agency (EPA) proposed guidance manual, Multi- Sector General Permits for Stormwater Discharges Associated with Industrial Activity dated 2008 (Federal Register Volume 73, No. 189, September 29, 2008). These specifications comply with the National Pollutant Discharge Elimination System (NPDES) Multi- Sector General Permit (MSGP) for storm water runoff associated with facilities that are classified as "Associated With Industrial Activity," as provided in the Clean Water Act, 33 U.S.C. 1251 et seq., as amended by the Water Quality Act of 1987, P.L. 100 -4. The most recent modification to the 2008 Multi - Sector General Permit went into effect February 26, 2009. This Storm Water Pollution Prevention Plan is prepared according to the EPA Industrial SWPPP Template dated January 13, 2009. According to the EPA guidance manual, Storm Water Management for Industrial Sites: Developing Pollution Prevention Plans and Best Management Practices, the goal of federal, state, and local storm water management programs is to improve water quality by reducing the pollutants introduced by human activity. The SWPPP is consistent with this goal and includes the following objectives: • Eliminate the discharge of process wastewater, domestic wastewater, and non - contact cooling water to storm water drainage systems; • Implement best management practices (BMPs) that identify the source, or sources, of water pollution and eliminate or reduce storm water pollutants; and • Prevent violations of surface water quality, groundwater quality, and sediment management standards. This SWPPP includes the following elements: SWPPP PURPOSE AND CONTENTS September, 2009 Page iii • An assessment and description of existing and potential pollutant sources; • A site map showing storm water drainage and drainage areas, discharge structures, paved areas and buildings, and areas where storm water could potentially contact pollutants and surface water bodies; • A list of pollutants that are or have a reasonable potential to be present in storm water discharges in significant amounts; and • A description of the BMPs that have been or will be implemented to reduce the potential for discharge of significant amounts of pollutants; including operational control and source control BMPs. BMPs are the physical, structural, operational, or administrative means of providing the appropriate controls. Operational BMPs consist of company policies, operating and maintenance procedures, personnel training, good housekeeping, prohibitions of undesirable practices, and other administrative practices to prevent or reduce pollution of waters of the United States. Source control BMPs are physical, structural, or mechanical devices or structures that are intended to prevent pollutants from entering storm water. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan September, 2009 Page iv In Alaska, the EPA administers the NPDES program from the Region 10 office in Seattle. The Alaska Department of Environmental Conservation (ADEC) will assume the NPDES propgram on November 1, 2009. Brechan must submit a Notice of Intent (NOI) to the ADEC to maintain permit coverage. Brechan Enterprises, Inc. is submitting this SWPPP in accordance with the requirements of 40 CFR 419, which indicates that the activities described within this SWPPP are subject to Phase I of the National Pollutant Discharge Elimination System. This SWPPP will be a part of the MSGP NPDES permit application. The SWPPP outlines the BMPs that will be employed to prevent pollution if storm water is discharged from the site. Attachment A includes a general location map. Attachment B contains site maps. Attachment C contains the 2008 MSGP and NOI. Attachment D includes monitoring and inspection forms and will contain monitoring and inspection reports as they are completed. Attachment E contains environmental documentation relevant to this SWPPP. Attachment F contains personnel training records. The SWPPP will be amended whenever there is a change in design, construction, operation, or maintenance at the construction site that could have an effect on the discharge of pollutants to a water of the United States. All changes that occur to the plan or the figures will be recorded on page ii of this SWPPP in the Revisions Log. A copy of this SWPPP and all appendices will be retained at the facility. It will be available for review by the EPA, State, Tribal, or local agency personnel. If a member of the public makes a request in writing, the SWPPP will be supplied to them. Confidential Business Information (CBI) may not be withheld from regulatory agencies, but may be withheld from the public. All portions of the SWPPP not considered to be CBI must be provided to the public when requested. If this SWPPP in considered to be inadequate by the EPA, it will be modified within 7 calendar days of EPA inspection or notification by the preparer to meet their request RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan TABLE OF CONTENTS September, 2009 Page v Record of Revisions ii Notices iii 1.0 FACILITY DESCRIPTION AND CONTACT INFORMATION 1 1 1 Facility Information 1 1.2 Contact Information/Responsible Parties 2 1.3 Storm Water Pollution Prevention Team 3 1.4 Activities at the Facility 3 1.5 General Location Map 3 1.6 Site Map 3 2.0 POTENTIAL POLLUTANT SOURCES 4 2.1 Industrial Activity and Associated Pollutants 4 2.2 Spills and Leaks 5 2.3 Non -Storm Water Discharges Documentation 5 2.4 Salt Storage 6 2.5 Sampling Data Summary 7 3.0 STORM WATER CONTROL MEASURES 7 3.1 Minimize Exposure 7 3.2 Good Housekeeping 7 3.3 Maintenance 9 3.4 Spill Prevention and Response 9 3.5 Erosion and Sediment Controls 10 3.6 Management of Runoff 10 3.7 Salt Storage Piles or Piles Containing Salt 10 3.8 MSGP Sector - Specific Non - Numeric Effluent Limits 10 3.9 Employee Training 11 3.10 Non -Storm Water Discharges 11 3.11 Waste, Garbage, and Floatable Debris 12 3.12 Dust Generation and Vehicle Tracking of Industrial Materials 12 4.0 SCHEDULES AND PROCEDURES FOR MONITORING 12 4.1 Visual Assessment/ Qualitative Monitoring 13 4.1.1 Quarterly Visual Assessment Documentation 14 4.2 Benchmark Monitoring 14 4.2.1 Benchmark Monitoring Documentation 16 4.3 Effluent Limitations Guidelines Monitoring 16 4.3.1 Effluent Limitations Guidelines Monitoring Documentation 18 4.4 State of Tribal Provisions 18 5.0 INSPECTIONS 18 RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 6.0 DOCUMENTATION TO SUPPORT ELIGIBILITY CONSIDERATIONS UNDER OTHER FEDERAL, STATE, AND LOCAL LAWS 20 6.1 Endangered Species Documentation 20 6.2 Historic Properties Documentation 20 6.3 Alaska Department of Environmental Conservation 20 6.4 Alaska Department of Natural Resources 20 7.0 SWPPP CERTIFICATION 21 8.0 SWPPP MODIFICATIONS 23 Table 1 Table 2 Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F LIST OF TABLES Potential Pollutants and Significant Materials 4 Benchmark Monitoring Parameters and Concentrations 15 LIST OF ATTACHMENTS General Location Map Site Maps and BMP Specifications 2008 MSGP and NOI Monitoring and Inspection Forms and Reports Environmental Documentation Personnel Training Records September, 2009 Page vi RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 1.0 FACILITY DESCRIPTION AND CONTACT INFORMATION The Bell Flats tracts are located at on Middle Bay Road on the border of Section 36, Township 28S, Range 21W of the Seward Meridian. The site is approximately 84 acres. It is currently being mined for gravel. Excavation and stockpiling affect micro - drainage, but the site still generally drains to two large pits on the property. From these pits, water has historically drained into a spring -fed drainage channel that runs northeast along the property. This drainage channel flows into Russian Creek. Facility Information Name of Facility: Tracts B -1, B -2, B -3, B -4A Bell Flats Alaska Subdivision Street: Middle Bay Drive City: Kodiak State: AK_ ZIP Code: 99615_ County or Similar Subdivision: Kodiak Island Borough Permit Tracking Number: (if covered under a previous permit) Latitude /Longitude (Use one of three possible formats, and specify method) Latitude: Longitude: 1.57 ° 42' 04" N (degrees, minutes, seconds) 1. 152 ° 36' 13" W (degrees, minutes, seconds) 2. _ _ ° _ _ . _ N (degrees, minutes, decimal) 2. _ _ ° _ _ . _ _' W (degrees, minutes, decimal) 3. . ° N (decimal) 3. . ° W (decimal) Method for determining latitude /longitude (check one): ❑ USGS topographic map (specify scale: ) ❑ EPA Web site ®GPS ❑ Other (please specify): Is the facility located in Indian Country? ❑ Yes ® No If yes, name of Reservation, or if not part of a Reservation, indicate "not applicable." Is this facility considered a Federal Facility? ❑ Yes ® No Estimated area of industrial activity at site exposed to stormwater: Eighty-four (acres) Discharge Information Does this facility discharge stormwater into an MS4? ❑ Yes ® No If yes, name of MS4 operator: Name(s) of water(s) that receive stormwater from your facility Russian Creek Are any of your discharges directly into any segment of an "impaired" water? ❑ Yes No September, 2009 Page 1 If Yes, identify name of the impaired water (and segment, if applicable): RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan Identify the pollutant(s) causing the impairment: For pollutants identified, which do you have reason to believe will be present in your discharge? For pollutants identified, which have a completed TMDL? Do you discharge into a receiving water designated as a Tier 2 (or Tier 2.5) water? ❑ Yes ® No Are any of your stormwater discharges subject to effluent guidelines? ❑ Yes No If Yes, which guidelines apply? Primary SIC Code or 2- letter Activity Code: SIC 1442 (refer to Appendix D of the 2008 MSGP) Identify your applicable sector and subsector: Sector J, Subsector J1 1.2 CONTACT INFORMATION AND RESPONSIBLE PARTIES Facility Operator (s): Name: Brechan Enterprises, Inc. Address: 2705 Mill Bay Road City, State, Zip Code: Kodiak, AK, 99615 Telephone Number: (907) 486 -3215 Email address: mrmartin @gci.net Fax number: (907) 486 -4889 Facility Owner (s): Name: Kodiak Island Borough Address: 710 Mill Bay Road City, State, Zip Code: Kodiak, AK, 99615 Telephone Number: (907) 486 -9340 Email address: wkoning @kodiakak.us Fax number: (907) 486 -9394 SWPPP Contact: Name: Mike Martin Telephone number: (907) 486 -3215 Email address: mrmartin @gci.net Fax number: (907) 486 -4889 September, 2009 Page 2 RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 1.3 STORMWATER POLLUTION PREVENTION TEAM Staff Names Individual Responsibilities Mike Martin Operations Manager, SWPPP Contact SWPPP Inspector Conduct Inspections and Monitoring All SWPPP site inspectors will be responsible for conducting inspections as outlined in this SWPPP. Inspections are a critical aspect of maintaining and implementing any changes on site in regard to stormwater compliance with the EPA and the Alaska Department of Environmental Conservation (ADEC). Routine inspections are the only means of ensuring the reliability and integrity of onsite stormwater controls. The pollution prevention team must assist the facility manager in developing, implementing, maintaining, revising, and ensuring compliance with the facility's SWPPP. Each of the pollution prevention team personnel must maintain a current and easily accessible copy of the SWPPP. These copies can be both paper and electronic. 1.4 ACTIVITIES AT THE FACILITY September, 2009 Page 3 A gravel mining operation is underway on the Bell Flats Subdivision tracts. Two freshwater ponds comprising of approximately 34 acres are the source of material. The material extracted is of alluvial origin and consists of primarily gravel with some sand. Mining methods have included surface stripping and loading, underwater mining using excavators, tracked dragline and fixed boom dragline. The current method of minding is primarily underwater mining by hydraulic excavator along the perimeter of the existing ponds. The equipment in operation on site consists of hydraulic excavators and haul trucks. 1.5 GENERAL LOCATION MAP A general location and vicinity map for this facility is provided in Attachment A. 1.6 SITE MAP A site map for this facility is included in Attachment B. The map includes: • the size of the property in acres (84 acres); • the location and extent of significant structures and impervious surfaces; • directions of storm water flow (use arrows); • locations of all existing structural control measures; • locations of all receiving waters in the immediate vicinity of the facility; • locations of all storm water conveyances including ditches, pipes, and swales; • locations of potential pollutant sources identified under MSGP, Part 5.1.3.2; • locations where significant spills or leaks identified under MSGP, Part 5.1.3.3 have occurred; Material Potential Source Location Controls (BMPs) to Minimize Exposure to Water Antifreeze and Coolants In equipment Staged away from drainages. Petroleum, Oil, and Lubricants In equipment Staged away from drainages. Aggregate Material Stockpiles on site lot Staged away from drainages, well - graded and free - draining. Screening Plant On site lot Dust controlled as per manufacturer specifications. Sold Waste (Garbage) In office Collected indoors and disposed off site. Sanitary Waste In portable sanitary facility on lot Kept closed and empted when necessary. Spill Response Equipment In equipment yard. Stored indoors or otherwise sheltered from weather events. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan • locations of all storm water monitoring points; • locations of storm water inlets and outfalls, with a unique identification code for each outfall (e.g., Outfall No. 1, No. 2, etc), indicating if one or more outfalls are to be treated as "substantially identical" under MSGP, Parts 4.2.3, 5.1.5.2, and 6.1.1, and an approximate outline of the areas draining to each outfall; • locations and descriptions of all non -storm water discharges identified under MSGP, Part 2.1.2.10; • locations of the following activities where such activities are exposed to precipitation: o fueling stations; o vehicle and equipment maintenance and /or cleaning areas; o loading /unloading areas; o locations used for the treatment, storage, or disposal of wastes; o liquid storage tanks; o processing and storage areas; o immediate access roads used or traveled by carriers of raw materials, manufactured products, waste material, or by- products used or created by the facility; o transfer areas for substances in bulk; o machinery; and • locations and sources of run -on to the site from adjacent property that contains significant quantities of pollutants. 2.0 POTENTIAL POLLUTANT SOURCES Industrial materials or activities at the facility will be noted and updated on site figures. Potential pollutant sources have been evaluated and are listed in the following sections. 2.1 INDUSTRIAL ACTIVITY AND ASSOCIATED POLLUTANTS Sediment resulting from storm water runoff is the primary pollutant at the Bell Flats facility. Potential pollutants and materials handled, treated, stored, or disposed in significant quantities at the facility are listed in Table 1. Table 1: Potential Pollutants and Significant Materials September, 2009 Page 4 RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 2.2 SPILLS AND LEAKS Areas of Site Where Potential Spills/Leaks Could Occur Location 1 Affected Outfalls A leak could occur in the equipment yard I No outfall will be affected. September, 2009 Page 5 A spill of lubrication oil was noted beneath the drag line on a site inspection . Soil staining was evident, but there no indication that the spill had reached the gravel pit. Significant spills and leaks include, but are not limited to, releases of oil or hazardous substances in excess of quantities that are reportable under CWA Section 311 (see 40 CFR 110.6 and 40 CFR 117.21) or Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 USC §9602. As of the writing of this SWPPP there were no past spills or leaks. Any spills or leaks that occur while the permit is effective will be recorded below. Additional pages will be added if needed. Description of Past Spills/Leaks (Past 3 Years) Description/Location Affected Outfalls No outfall was affected Small lubrication oil spill located underneath the drag line. Soil staining evident. Date Date of spill unknown. Soil staining observed 8/09 2.3 NON - STORMWATER DISCHARGES DOCUMENTATION Non -storm water discharges to waters of the United States that are not authorized by an NPDES permit are unlawful and must be eliminated. The SWPPP must include a signature and certification that all discharges have been tested or evaluated for the presence of non -storm water and that all unauthorized discharges have been eliminated. This certification must include the following: • The date of any testing and /or evaluation; • A description of the evaluation criteria or testing method used; • A list of the outfalls or on site drainage points that were directly observed during the test; • A description of the results of any test and /or evaluation for the presence of non -storm water discharges; and • Actions taken to eliminate unauthorized discharges, if any were identified. If a previous certification showed non -storm water discharges and conditions have not changed, a new certification is not required. If a certification is required for non -storm water discharges and Brechan Enterprises, Inc. is unable to provide one, MSGP violation will not occur provided RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan Failure to provide this information to the EPA is a violation of the MSGP. that Brechan Enterprises, Inc. notifies the EPA no more than 14 days after the Notice of Intent (NOI) is submitted. The EPA must be notified of the following: • Why certification was not possible; • The procedure that you followed in any test attempted; • The results of such test or other relevant observations; and • Any potential sources of non -storm water discharges that have not been eliminated. Allowable Non -Storm Water Discharges September, 2009 Page 6 Discharges of non -storm water from certain sources are allowed under this permit. The SWPPP must describe discharge locations and appropriate BMPs for each allowable non -storm water source except firefighting discharges. These locations must be outlined on the site plan drawings on a consistent basis. Brehcan must document all allowable non -storm water discharges to meet administrative requirements. Upon discharge, Brechan must note the location of the activity on the site plan drawings and sign and date the note. These locations and drawings may be amended to the SWPPP to suit on site demands. The following non -storm water discharges are authorized under the 2008 MSGP permit: • Discharges from fire - fighting activities; • Fire hydrant flushings; • Potable water, including water line flushings; • Uncontaminated condensate from air conditioners, coolers, and other compressors and from the outside storage of refrigerated gases or liquids; • Irrigation drainage; • Landscape watering provided all pesticides, herbicides, and fertilizer have been applied in accordance with the approved labeling; • Pavement wash waters where no detergents are used and no spills or leaks of toxic or hazardous materials have occurred (unless all spilled material has been removed); • Routine external building wash down that does not use detergents; • Uncontaminated groundwater or spring water; • Foundation or footing drains where flows are not contaminated with process materials; and • Incidental windblown mist from cooling towers that collects on rooftops or adjacent portions of your facility, but not intentional discharges from the cooling tower. 2.4 SALT STORAGE No salt is stored at the facility. Stored salt is not a pollutant of concern for this facility. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 2.5 SAMPLING DATA SUMMARY No historic sampling data exists at this time. September, 2009 Page 7 The MSGP requires quarterly storm water discharge monitoring unless weather conditions, such as dry or frozen conditions, preclude storm water flow. If discharge monitoring is not possible due to weather conditions, those conditions must be documented on the monitoring report. Quarters are defined as three -month intervals beginning on the first day of January, April, July, and October. If permit coverage begins with less than one month left in a quarter, monitoring shall begin at the start of the next quarter. Discharge monitoring samples will be collected from the outlet of Pit #1. 3.0 STORMWATER CONTROL MEASURES Sections 3.1 through 3.12 describe storm water control measures installed to meet each of the MSGP's "non- numeric effluent limits" as described in Part 2.1.2 in the 2008 MSGP. Storm water control measures are identified on the site map in Attachment B. BMP specifications are also included in Attachment B. The following sections describe the BMPs for storm water management employed at the Bell Flats pits. The development of the housekeeping measures and BMPs explained in this section were developed in accordance with EPA's Storm Water Management for Industrial Sites: Developing Pollution Prevention Plans and Best Management Practices. The following sections describe the routine BMPs including good housekeeping, materials management, spill response, waste management, source controls, preventative maintenance, and training. 3.1 MINIMIZE EXPOSURE All industrial materials and activities have been located to minimize exposure to storm water and precipitation to the extent practical. Areas and activities with pollution potential are listed in sections 2.1 and 2.2 of this SWPPP. Listed materials will be protected with storm- resistant coverings to prevent exposure to rain, snow, snowmelt and runoff as follows: • Equipment containing antifreeze, coolants, petroleum, oil, and lubricants are staged away from drainages; • Aggregate material is well graded and free draining and staged away from drainages; • Screening plant dust is controlled by wetting; • Solid waste is collected and disposed offsite; • Sanitary waste in portable toilets is maintained and emptied when necessary; • Spill response equipment is stored near the equipment yard. 3.2 GOOD HOUSEKEEPING The intent of good housekeeping is to maintain a clean and orderly work environment, which in turn reduces the probability of accidental spills caused by mishandling of equipment and materials. Good housekeeping, therefore, is considered an effective first step in preventing the RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan September, 2009 Page 8 pollution of storm water. Examples of good housekeeping practices employed at the facility include: • Maintain a neat and orderly work place; • Do not let scrap accumulate around work areas; • Sweep up after each shift; • Clean up drips and spills promptly; • Keep containers closed tightly; • Keep lids and covers on all containers unless you are actively using them; • Make sure all containers are properly labeled; • Use drip pans when making product transfers; • Place drip pans under small leaks until they can be permanently repaired; and • Protect drip pans from overflowing. The following detailed procedures promote good housekeeping: • Material Management; and • Waste Management. Brechan Enterprises, Inc. encourages proper material storage in order to prevent the release of substances that may cause storm water pollution. Good housekeeping practices for material storage include the following: • Do not let industrial materials remain exposed to storm water or snow melt; • Place materials indoors, under a shelter or roof overhang if possible; • Do not store materials near a down spout or storm drain; • Place temporary covers over exposed materials; • Check the covered materials regularly to insure the cover is in place; Waste management BMPs at the Bell Flats facility are designed to reduce or eliminate waste coming into contact with storm water. Specific waste management practices include: • Never using ditches for waste disposal; • Insuring that all containers are covered; • Closing dumpster lids; • Draining fuel storage secondary containment only with approval; and • Never releasing water if there is sheen on the water or other possible contaminants are observed. Material inventory practices can reduce the waste that results from overstocking and the disposal of outdated materials. Careful tracking of material inventories can also result in more efficient use of materials. The following material inventory BMPs will be employed at the Bell Flats facility: • A Material Safety Data Sheet (MSDS) shall be maintained for each product used at the facility; • Containers will be clearly labeled with the name and type of the contained materials; and • When appropriate or when otherwise required, containers will be labeled with the contained materials, expiration date, and suggestions for handling, cleanup, and first aid information. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 3.3 MAINTENANCE Preventive maintenance involves the inspection and maintenance of equipment and systems to uncover conditions that could cause breakdowns, and correction of these conditions by adjustment, repair, or replacement of worn parts before the equipment or systems fail. One goal of a preventive maintenance program is to discover conditions that could result in discharge of pollutants to storm water. The preventive maintenance program at the facility includes inspection and maintenance of the storm water drainage system. The preventive maintenance program involves: • Identifying equipment and systems which could potentially fail and release hazardous substances; • Ensuring slopes are graded to drain; • Adjusting, repairing and replacing parts and equipment where necessary; • Cleaning and routine maintenance of storm water systems; • Ensuring drainage channel diversion berms of appropriate elevation and maintaining its structural integrity; and • Maintaining structural integrity of the gravel berm blocking the pond outlet. Since inspection records provide early detection of potential problems, personnel will document inspections in field notebooks as a preventive maintenance technique. Records will also document spills, leaks, and other discharges, including discharges of reportable quantities of hazardous substances. Copies of completed records and forms will be kept on file at the facility. All BMPs will be properly maintained. Performing the inspections will ensure that all BMPs are intact and are in fact providing environmental protection from sediment entering into Waters of the United States. All maintenance and repairs will be recorded with dates, deficiencies noted, and the repairs needed. 3.4 SPILL PREVENTION AND RESPONSE September, 2009 Page 9 Spill prevention and response provisions include at a minimum: • Procedures for plainly labeling containers (e.g., "Used Oil," "Spent Solvents," "Fertilizers and Pesticides," etc.) that could be susceptible to spillage or leakage to encourage proper handling and facilitate rapid response if spills or leaks occur; • Preventative measures such as barriers between material storage and traffic areas, secondary containment provisions, and procedures for material storage and handling; • Procedures for expeditiously stopping, containing, and cleaning up leaks, spills, and other releases; and • Procedures for notification of appropriate facility personnel, emergency response agencies, and regulatory agencies. Spill prevention and response procedures will be discussed periodically during employee safety meetings to ensure that all personnel understand the procedures. The following specific guidance for spill prevention and response will be provided to all personnel: RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan • NEVER hose down a spill; • Do not wash a spill into a ditch; • Clean up all leaks, spills, and drips immediately; • Use absorbents to pick up liquid materials; • Ensure that all material is picked up; • Do not leave any residues that storm water runoff might wash away; • Protect ditches by utilizing absorbent boom or geotextiles; and • Dispose of all cleanup waste properly by placing it in an appropriate container, covering, labeling, and taking it to the designated storage area. 3.5 EROSION AND SEDIMENT CONTROLS The erosion and sediment controls or BMPs that will be implemented as part of this MSGP are stabilization measures, structural controls, dust controls, storage of waste in covered dumpsters /containers to prevent dispersal by ravens, and bears, and disposal of waste in a legal manner according to waste management procedures. The Bell Flats facility is accessed via Middle Bay Road. The BMP specifications are included in Attachment B of this SWPPP. 3.6 MANAGEMENT OF RUNOFF 3.7 SALT STORAGE PILES OR PILES CONTAINING SALT No salt is stored at the facility. Stored salt is not a pollutant of concern for this facility. September, 2009 Page 10 Controlling internal site conditions involves diverting and directing any sediment -laden water off site through the implementation of temporary and permanent controls. Specific site drainage patterns may change as the site is developed. Brechan will preserve existing vegetative buffer strips where practical to manage runoff and promote storm water infiltration into gravels. The access road around Pit #1 produces sediment -laden stormwater that drains into the pit. Brechan will maintain diversion berms to direct stormwater away from the pits. The spring fed drainage channel that parallels the gravel pits is separated by a gravel berm. This berm ensures that the highly turbid water present in the ponds does not flow into the drainage channel. An existing culvert is located at the northeast end of the ponds that allows water to flow into the drainage channel. A berm was constructed blocking the culvert and ensuring that the turbid water from the ponds does not flow into Russian Creek or the drainage channel. 3.8 MSGP SECTOR - SPECIFIC NON - NUMERIC EFFLUENT LIMITS Good housekeeping measures must be undertaken to prevent or minimize the discharge of: • Aggregate (including sand or gravel); • Settled Dust; and • Any other significant material from paved portions of the site that are exposed to storm water. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 3.9 EMPLOYEE TRAINING An employee storm water training program will be implemented at the Bell Flats facility. All employees who work in areas where industrial material or activities are exposed to storm water will attend training meetings. Training will cover the components of this MSGP SWPPP and will include the following topics: • Spill response; • Good housekeeping; • Material management practices; and • BMP operations and maintenance. A record of employees attending and meeting minutes will be recorded and included in Appendix D. 3.10 NON - STORMWATER DISCHARGES September, 2009 Page 11 Unauthorized Non -storm water discharges to waters of the United States that are not authorized by an NPDES permit are unlawful and must be eliminated. See section 2.3 for documentation of unauthorized non - stormwater discharges and actions taken to eliminate them. Authorized Discharges of certain sources of non -storm water are allowed under this permit. For each allowable non -storm water source except fire fighting discharges, the SWPPP must include the discharge locations and descriptions of appropriate BMPs for each source. These locations need to be outlined on the site plan drawings on a consistent basis. All allowable non -storm water discharges must be documented to meet administrative requirements. Upon discharge, note the location of the activity on the site plan drawings, date, and sign. These locations and drawings can always be amended to the SWPPP to suit onsite demands. The following non -storm water discharges are authorized under the 2008 MSGP permit (Section 1.1.3, 2008 MSGP): 1. Discharges from fire- fighting activities; 2. Fire hydrant flushing; 3. Potable water, including water line flushing; 4. Uncontaminated air conditioner or compressor condensate; 5. Irrigation drainage; 6. Landscape watering if all pesticides, herbicides, and fertilizer have been applied in accordance with manufacturer's instructions; 7. Pavement wash waters where no detergents are used and no spills or leaks of toxic or hazardous materials have occurred (unless all spilled material has been removed); RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 8. Routine external building wash down that does not use detergents; 9. Uncontaminated groundwater or spring water; 10. Foundation or footing drains where flows are not contaminated with process materials; and 11. Incidental windblown mist from cooling tower that collects on rooftops or adjacent portions of the facility, but NOT intentional discharges from the cooling tower. 3.11 WASTE, GARBAGE AND FLOATABLE DEBRIS All waste, garbage and floatable debris will be kept in a covered location and transported for disposal. 3.12 DUST GENERATION AND VEHICLE TRACKING OF INDUSTRIAL MATERIALS Dust generation is a concern for the Bell Flats facility. Uncontaminated groundwater can be used to wet aggregates and prevent dust generation and to knock mud or loose aggregate from trucks before driving off site. 4.0 SCHEDULES AND PROCEDURES FOR MONITORING 1. Quarterly benchmark monitoring; 2. Annual effluent limitations guidelines monitoring 3. State specific monitoring September, 2009 Page 12 It should be noted that the site is highly pervious. Most precipitation infiltrates before runoff can accumulate on site. It is not expected that runoff will occur except perhaps the most extreme conditions. Any runoff would like drain into the site along the roads. However, the facility will keep monitoring equipment on site, in preparation for possible sampling opportunities. The 2008 MSGP requires regular monitoring of storm water discharges. Monitoring includes visual assessment/qualitative monitoring of discharges; indicator/benchmark sampling, and compliance sampling. Indicator/benchmark sampling and compliance sampling are analytical monitoring. There are five types of analytical monitoring that a facility may have to perform to comply with the 2008 MSGP. Depending on a facility's specific characteristics, one or more of the following types of monitoring will be required: In addition to visual assessment monitoring, the analytical monitoring types required for the Bell Flats facility are quarterly benchmark monitoring, annual effluent limitations guidelines monitoring, and state specific requirements. SWPPP team members will be trained to sample the storm water by a Qualified Sampler (in accordance with ADEC standards). A "qualified person" means a person who actively practices environmental science or engineering, geology, physical science, hydrology, or a related field RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan September, 2009 Page 13 and has the following minimum education and experience: a bachelor's degree or equivalent from a nationally or internationally accredited postsecondary institution in environmental science or engineering, geology, hydrology, physical science, or a related field. AND at least one year of professional experience in environmental science or engineering, geology, physical science, or a related field. In addition the sampling personnel will review and follow the EPA procedures manual NPDES Storm Water Sampling Guidance Document (EPA Office of Water, July 1992). All sampling will be conducted in accordance with 40 CFR 136 as well as 18 AAC 70. The analytical laboratory will conduct analyses in accordance with methods dictated in 10 CFR 136. The following details the necessary sampling required by the general permit. 4.1 VISUAL ASSESSMENT /QUALITATIVE MONITORING For every quarter of the permit term, in accordance with Part 4.2 of the 2008 MSGP, the facility must visually assess storm water samples from each outfall for the following parameters: • Color; example: - milky, brown • Odor; example: -none, sulfur, decay • Clarity; example: - clear, opaque • Floating Solids; example: - present or none • Settled Solids; • Suspended Solids; example: - present, none, or few • Foam; example: - present or absent • Oil Sheen; example: - present or absent • Other obvious indicators of storm water pollution. The visual examination will be made during daylight hours. If no storm event resulted in runoff during daylight hours from the facility during a monitoring quarter, or if no runoff is observed during or after the storm event, it will be documented that no runoff occurred. The examination will be conducted in a well -lit area. When possible, the same individual will carry out the collection and examination of discharges for the entire permit term. Staff will maintain visual examination reports (Appendix E) on site with the SWPPP. Quarters are defined as follows: • January 1 — March 31; • April 1— June 30; • July 1 — September 30; and • October 1 — December 31. All visual samples required for quarterly visual assessment will be performed during a "measurable storm event," that results in an actual discharge from the facility or, in the case of snowmelt, when a measurable discharge occurs at the facility. In accordance with Part 6.1.3 of the 2008 MSGP, at least one of the quarterly samples will capture snowmelt discharge. Grab RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan samples should be collected within the first 30 minutes of the measurable storm event, or if that is not possible, as soon as practicable and provide an explanation why the sample could not be collected in the first 30 minutes. The event from which samples will be collected must be at least 72 hours after the preceding discrete event. Applicable exceptions to quarterly visual assessments include: Adverse weather conditions- if adverse weather conditions prevent the collection of samples during the quarter, a substitute sample must be collected during the following storm event. Documentation of rationale for no visual assessment must be included in the SWPPP. Adverse weather conditions include local flooding, high winds, electrical storms, or situations that otherwise make sampling impractical such as drought or extended frozen conditions. 4.1.1 QUARTERLY VISUAL ASSESSMENT DOCUMENTATION September, 2009 Page 14 Quarterly visual assessment monitoring must be documented in accordance to Part 4.2.2 of the 2008 MSGP. Documentation must be kept on site with the SWPPP (see Appendix F). Documentation must include the following information: • Sample location(s); • Sample collection date and time, and visual assessment date and time for each sample; • Personnel collecting the sample and performing visual assessment, and their signatures; • Nature of the discharge (i.e., runoff or snowmelt); • Results of observations of the storm water discharge- for rainfall record the date of the event, the number of hours in duration, the number of days since the previous measurable storm event; for snowmelt identify the date of monitoring; • Probable sources of any observed storm water contamination; • If applicable, why it was not possible to take samples within the first 30 minutes. • Corrective action, if any necessary. 4.2 BENCHMARK MONITORING Benchmark monitoring will be conducted in accordance with the 2008 MSGP Parts 6.2.1, 8.E.4, and 9.10.1.7. Benchmark monitoring will be conducted quarterly, and may be conducted coincident to quarterly visual assessment, for the first full four quarters of permit coverage: • October 1, 2009 — December 31, 2009 • January 1, 2010 — March 31, 2010. • April 1, 2010 — June 30, 2010 • July 1, 2010 — September 30, 2010 Applicable exceptions to quarterly benchmark monitoring include: Adverse weather conditions and Climates with Irregular Stormwater Runoff- if adverse weather conditions, as noted above, prevent the sampler from collecting a quarterly benchmark sample, the facility must document the reasons for failure to sample in accordance with Part 7.1 of the 2008 MSGP. In this case a sample can be collected Parameter EPA Analysis Method Benchmark Monitoring Cutoff Concentration Effluent Limitation Guidelines Total Suspended Solids 160.2 100 mg/L* 25.0 mg/L monthly average, 45.0 mg/L daily maximum Total Recoverable Iron 200.8 1.0 mg/L N/A Total Recoverable Aluminum 200.8 0.75 mg/L N/A Total Nitrate +Nitrite 300.0 0.68 mg/L N/A pH 150.2 N/A 6.5 — 8.5 s.u. ** t RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan during the following storm water event. If freezing conditions exist that prevent runoff from occurring for extended periods, required monitoring events may be distributed during seasons when precipitation occurs, or when snowmelt results in a measurable discharge from the site. If the sampler is unable to collect four samples in one year because of frozen conditions, this can be documented in the SWPPP, but the facility must continue quarterly benchmark monitoring until the four quarterly samples are collected. Benchmark samples from each outfall will be collected for the following parameters: • Total Suspended Solids (TSS) • Total Recoverable Iron • Total Recoverable Aluminum • Nitrate Plus Nitrite Nitrogen Table 2: Benchmark Monitoring Parameters and Concentrations * Milligrams per liter Total Suspended Solids Standard units t State of Alaska Provisions (see section 4.4) September, 2009 Page 15 Samples will be analyzed for total suspended solids (TSS) by EPA Method 160.2. Samples will be collected in glass or polyethylene vessels and preserved at a temperature of 4 °C +/- 2 °C. Total Recoverable Iron and Aluminum Samples will be analyzed for the total recoverable iron and total recoverable aluminum listed in Table 1 by EPA Method 200.8. The metal samples will be collected in glass or polyethylene vessels and preserved with nitric acid at a pH of less than 2 and a temperature of 4 °C +/- 2 °C. Total Nitrate + Nitrite Nitrogen RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan Samples will be analyzed for the total nitrate and nitrite listed in Table 1 by EPA Method 300.0. The water sample will be collected in a 60mL polyethylene vessel and preserved with sulfuric acid and a temperature of 4 °C +/- 2 °C. All samples required for benchmark monitoring will be analyzed by an EPA - approved environmental laboratory. All analytical samples required for benchmark monitoring will be collected from the Pit #1 identified above, before the authorized storm water effluent is comingled with discharge not authorized by the 2008 MSGP. All analytical samples required for benchmark monitoring under this permit will be performed during a "measurable storm event," that results in an actual discharge from the facility or, in the case of snowmelt, when a measurable discharge occurs at the facility. Grab samples should be collected within the first 30 minutes of the measurable storm event, or if that is not possible, as soon as practicable and provide an explanation why the sample could not be collected in the first 30 minutes. The event from which samples will be collected must be at least 72 hours after the preceding discrete event. Exceedance of the benchmark is not a permit violation. In accordance with Part 3.2 of the 2008 MSGP exceedance of a benchmark necessitates a follow -up investigation and applicable corrective action. Failure to do so is a violation of the permit. 4.2.1 BENCHMARK MONITORING DOCUMENTATION September, 2009 Page 16 Results of benchmark monitoring must be submitted to the EPA no later than 30 days after receiving results from the laboratory. Data reports must be submitted using the EPA's online eNOI system (Appendix G). Copies of the benchmark monitoring documentation must also be submitted to the ADEC. Documentation must be kept on site with the SWPPP (see Appendix F). Record of benchmark monitoring should include: • The date, exact place, and time of sampling or measurements; • The individual(s) who performed the sampling or measurements; • The date(s) analyses were performed; • Nature of the discharge (i.e., runoff or snowmelt); • Results of observations of the storm water discharge- for rainfall record the date of the event, the number of hours in duration, the number of days since the previous measurable storm event; for snowmelt identify the date of monitoring; • The individual(s) who performed the analyses; • The analytical techniques or methods used; and • The results of such analyses. 4.3 EFFLUENT LIMITATIONS GUIDELINES MONITORING The facility is subject to effluent limitation guidelines in accordance with the 2008 MSGP part 8.E.5 and 9.10.1.7. Beginning the first full quarter following the date of authorization for this permit, each outfall must be sampled once per year for the following: RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan • Total Suspended Solids (TSS)- 50 mg/L benchmark monitoring cutoff concentration • pH- 6.5 — 8.5 s.u. (in accordance with state specific monitoring requirements 2008 MSGP part 9.10.1.7). Water pH will be analyzed with a pH meter in accordance with EPA Method 150.2, although pH monitoring will not be continuous. Analyses will be performed on site immediately after water samples are collected. Total Suspended Solids September, 2009 Page 17 For the first permit year one of the quarterly benchmark samples for TSS may satisfy the effluent limitations guideline annual sample for TSS. All analytical samples required for yearly effluent guidelines limitations monitoring will be collected from the outfalls identified above, before the authorized storm water effluent is comingled with discharge not authorized by the 2008 MSGP. All analytical samples required for yearly effluent guidelines limitations monitoring under this permit will be performed during a "measurable storm event," that results in an actual discharge from the facility or, in the case of snowmelt, when a measurable discharge occurs at the facility. Grab samples should be collected within the first 30 minutes of the measurable storm event, or if that is not possible, as soon as practicable and provide an explanation why the sample could not be collected in the first 30 minutes. The event from which samples will be collected must be at least 72 hours after the preceding discrete event. Effluent limitation guidelines are legally enforceable limitations. Exceedance of numeric effluent limits must be documented and reported in accordance with Part 7.3 of the 2008 MSGP (see Appendix G). 4.3.1 EFFLUENT LIMITATION GUIDELINES MONITORING DOCUMENTATION Results of effluent limitation guidelines monitoring must be submitted to the EPA no later than 30 days after receiving results from the laboratory. Data reports must be submitted using the EPA's online eNOI system (Appendix G). Copies of the benchmark monitoring documentation must also be submitted to the ADEC. Documentation must be kept on site with the SWPPP (see Appendix G). RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 4.4 STATE PROVISIONS The facility is subject to state monitoring requirements in accordance with the 2008 MSGP part 6.2.3, and 9.10.1. Effluent limits for pH are 6.5 — 8.5 s.u. in accordance with 18 AAC 70.20 (b) (6) rather than the limit stipulated by the EPA. Inactive and Unstaffed sites exception (if applicable) If you are invoking the exception for inactive and unstaffed sites for benchmark monitoring, include information to support this claim. Monitoring forms are included in Attachment D. Completed monitoring reports are to be added to Attachment D. 5.0 INSPECTIONS September, 2009 Page 18 The 2008 MSGP requires three types of inspections. Routine facility inspections, quarterly visual assessment of storm water discharges, and annual comprehensive site inspections. Records of all inspections will be complied in Attachment D of this SWPPP. Inspection forms are included in Attachment D. Routine Facility Inspections Routine facility inspections must be conducted at least quarterly, though monthly inspections are recommended. In accordance with section 4.1.1 of the MSGP, the inspection schedule must be included in this SWPPP. Routine inspections will be conducted on the first Tuesday of each month. At least once each calendar year, the routine facility inspection must be conducted during a period when storm water discharge is occurring. To accommodate this requirement, a routine facility inspection will be conducted during the first significant rain event of the summer. If an inspection has already been completed for the month at the time of this storm event inspection, then this inspection will be in addition to the normally scheduled inspection. If the regularly scheduled inspection has not yet been completed, this inspection will replace the normally scheduled inspection. Routine facility inspections must include the documentation of: • The inspection time and date; • The name(s) and signature(s) of the inspector(s); • Weather information and a description of any discharges occurring at the time of the inspection; • Any previously unidentified discharges of pollutants from the site; • Any control measures needing maintenance or repairs; • Any failed control measures that need replacement; • Any incidents of noncompliance observed; and • Any additional control measures needed to comply with permit requirements. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan September, 2009 Page 19 Routine facility inspections must be conducted by qualified personnel. Exceptions to routine facility inspections are included in section 4.1.3 of the MSGP. Comprehensive Site Inspections In accordance with section 4.3 of the MSGP, a comprehensive site inspection must be conducted once per year by a qualified person with at least one member of the storm water pollution prevention team. For simplicity and thoroughness, each routine facility site inspection will include all of the requirements of the comprehensive site inspection. At least one of the summer comprehensive site inspections will be conducted by a qualified person along with a member of the storm water pollution prevention team. The following must be inspected during a comprehensive site inspection: • Industrial materials, residue, or trash that may have or could come into contact with storm water; • Leaks or spills from industrial equipment, drums, tanks, or other containers; • Offsite tracking of industrial or waste materials, or sediment where vehicles enter or exit the site; • Tracking or blowing of raw, final, or waste materials from areas of no exposure to exposed areas; and • Control measures needing replacement, maintenance, or repair. The following documentation of each comprehensive site inspection must be maintained onsite with the SWPPP and submitted with the annual report required in part 7.2 of the MSGP: • The date of the inspection; • The name(s) and title(s) of the personnel making the inspection; • Findings from the examination of items listed above; • All observations relating to the implementation of control measures including: o previously unidentified discharges from the site; o previously unidentified pollutants in existing discharges; o evidence of, or the potential for, pollutants entering the drainage system; o evidence of pollutants discharging to receiving waters at all facility outfall(s), and the condition of and around the outfall, including flow dissipation measures to prevent scouring, and o additional control measures needed to address any conditions requiring corrective action identified during the inspection. • Any required revisions to the SWPPP resulting from the inspection; • Any incidents of noncompliance observed or a certification stating the facility is in compliance with this permit (if there is no noncompliance); and • A statement, signed and certified in accordance with Appendix B, subsection 11 of the MSGP. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan September, 2009 Page 20 6.0 DOCUMENTATION TO SUPPORT ELIGIBILITY CONSIDERATIONS UNDER OTHER FEDERAL LAWS 6.1 DOCUMENTATION REGARDING ENDANGERED SPECIES According to the United States Fish and Wildlife Service, the described activity will not affect threatened or endangered species, or their critical habitat designated as endangered or threatened, under the Endangered Species Act of 1973 (87 Stat. 844). 6.2 DOCUMENTATION REGARDING HISTORIC PROPERTIES Alaska State Historic Preservation Office documents were reviewed and no historical sites were found within the vicinity of the property. Therefore it can be determined that there can be no negative impacts of historical sites due stormwater runoff from the mining operation. 6.3 ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION A copy of this SWPPP and the Notice of Intent has been sent to the ADEC for review in accordance with Part 9.10.1.3 of the 2008 MSGP. In addition the ADEC will be copied all of documents submitted to the EPA pursuant to Parts 3.4, 7, and Appendix B.12 of the 2008 MSGP 6.4 ALASKA DEPARTMENT OF NATURAL RESOURCES The operator of the Bell Flats facility has a permit from the Alaska Department of Natural Resources to mine gravel at the site. This permit is granted based upon a detailed mining and remediation plan. RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan 7.0 SWPPP CERTIFICATION OPERATOR Company: Brechan Enterprises, Inc. Owner: Mike Martin STORMWATER POLLUTION PREVENTION PLAN for: Tracts B -1, B -2, B -3, B -4A Bell Flats Alaska Subdivision Middle Bay Drive Kodiak, Alaska 99615 SWPPP Contact(s): Brechan Enterprises, Inc. Mike Martin, President 2705 Mill Bay Road Kodiak, Alaska 99615 SWPPP Preparation Date: 09/ 30/ 2009 lam Travis /Peterson Environmental Consulting, Inc. Prepared by TRAVIS/PETERSON ENVIRONMENTAL CONSULTING, INC. 3505 Arctic Blvd., Suite 102 Anchorage, Alaska 99503 Project Number 1369 -02 September, 2009 Page 21 ATTACHMENT C RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan CONTRACTOR CERTIFICATION LEASEE: Company: Brechan Enterprises, Inc. Owner: Mike Martin Address: 2705 Mill Bay Road Anchorage, Alaska 99615 Telephone Number: 907 - 486 -3215 I certify under the penalty of law that I have read and understand the terms and conditions of this Multi Sector General Permit for Industrial Activities SWPPP for the above designated project and agree to follow the practices described in the SWPPP. Signature: Date: Mike Martin, President- Brechan Enterprises, Inc. September, 2009 Page 22 RECON, LLC. 1369 -02 Bell Flats Storm Water Pollution Prevention Plan DOCUMENT PREPARER I cert under penalty of law that I have read the terms and conditions of the general National Pollutant Discharge Elimination System (NPDES) permit that authorizes the storm water discharges associated with industrial activity identified as part of this certification. This document and all attachments were prepared in accordance with reasonable business standards. The information contained in this document and all attachments are, to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations. Erik Mundahl, CESCL Environmental Engineer, EIT Travis/Peterson Environmental Consulting, Inc. 8.0 SWPPP MODIFICATIONS Date: September, 2009 Page 23 This SWPPP is a "living" document and is required to be modified and updated, as necessary, in response to corrective actions. See Part 3.4 of the 2008 MSGP. • If SWPPP modification is required in response to a corrective action required by Part 3.1 of the 2008 MSGP, then the certification statement in section 7 of this SWPPP template must be re- signed in accordance with 2008 MSGP Appendix B, Subsection 11.A or 11.B. • For any other SWPPP modification, Brechan Enterprises, Inc. must keep a log with a description of the modification, the name of the person making it, and the date and signature of that person. See 2008 MSGP Appendix B, Subsection 11.C. SWPPP modifications are to be recorded in the Revision Log included on page ii of this SWPPP. KODIAK ISLAND BOROUGH Gravel Resource Estimate B- Tracts Material Site Kodiak AK Isaac Rowland, P.Eng. December 18, 2009 Rowland Engineering Consultants 481 West Arctic Avenue, • Palmer, Alaska 99645 907.746.3630 •907.355.3006 cell • steve@rcconlc.net Estimate of the remaining gravel resource at Bell Flats, Kodiak AK completed for the Kodiak Island Borough in October- November 2009. � ► CONTENTS Rowland Engineering Consultants 1.0 INTRODUCTION 3 1.1 Description of Site 3 1.2 Methodology 3 2.0 DRILL PROGRAM 4 2.1 Locations 4 2.2 Drilling 4 2.3 Material 6 2.4 Drilling Summary 6 3.0 SURVEY 6 4.0 RESERVE CALCULATIONS 7 4.1 Bedrock Surface Calculations 7 4.2 Restrictions 7 4.3 Volume Results 8 4.4 Gravel Recovery 8 5.0 SUMMARY 9 ATTACHMENTS Borehole Logs Current Surface Drawing Final Pit Configuration Drawing Project No.: 158913 Page 2 18 December 2009 Rowland Engineering Consultants 1.0 INTRODUCTION At the request of the Kodiak Island Borough (KIB), RECON, LLC is providing this estimate of the remaining gravel resource available for extraction at the B- Tracts material site located in Bell Flats, Kodiak, AK. In October and November, 2009 a field drilling program, as well as a surface and bathometric survey were completed to compile the necessary data for this assessment. 1.1 Description of Site The B- Tracts material site is located in the Russian Creek drainage two miles from the head of Womens Bay. The site consists of four tracts of land owned by the Kodiak Island Borough known as Tracts B -1, B -2, B -3, and B4A and collectively referred to as the "B- Tracts ". Total area of the four tracts is approximately 84 acres. The tracts are currently leased to Brechan Enterprises ( "the operator") who is extracting and processing the gravel. The site is part of the historic Russian Creek floodplain and current mining is below the water table. The mining operation generally consists of two large ponds, referred to by the operator as Pit 1 and Pit 2. Material extracted from the site is of alluvial origin and primarily consists of gravel with some sand. Based on field observations and some limited data supplied by the current operator, historic production at the B- Tracts pit exceeds 1M yd Mining methods are reported to have included surface stripping and loading, underwater mining using excavators, tracked dragline, and fixed boom dragline. The current mining method is primarily underwater mining by hydraulic excavator along the perimeter of the existing ponds. 1.2 Methodology Based on observations of local geography, it was assumed by RECON that bedrock is the "floor" of the resource and is the primary factor limiting the amount of material available for extraction. Based on this assumption the resource estimate for the B- Tracts material site was completed in three phases: Phase 1 — Completion of a drill program to test bedrock depth Phase 2 — Topographic survey of existing ground surface and pond bathymetry Phase 3 — Calculation of remaining gravel resource using surfaces developed from the drill program and survey. Project No.: 158913 Page 3 18 December 2009 N Rowland Engineering Consultants 2.0 DRILL PROGRAM The B- Tracts drill program was conducted from Oct. 30, through Nov 5, 2009 under the supervision of RECON employee Isaac Rowland, P Eng. 2.1 Locations A total of 12 drill holes were completed around the perimeter of both ponds. With the given access constraints, the drill hole locations were sited to provide the best possible indication of bedrock trends under the ponds. See Fig 1 for approximate location of completed drill holes. 2.2 Drilling The drilling contractor employed for this project was Mill Bay Drilling of Kodiak, AK. The drill used was a conventional rotary water well rig utilizing a 6" tri-cone bit. Six -inch steel casing was driven to bedrock on all holes. On completion the casing was pulled from all holes with the exception of KDH09 -07, -08, and -09. These holes were capped and left as water level monitoring wells. Average production was 2 holes per day over the course of 6 days. Completed depth ranged from 20 ft to 56 ft with an average depth of 36.6 ft. Bedrock was encountered at an average depth of 30.3 ft. The following table provides the general results of the investigation. DH# Collar Total Depth to Bedrock Elev. Depth Bedrock Elev. KDH09 -01 91.9 34.5 34.5 57.4 KDH09-02 95.9 46.5 44.5 51.4 KDH09 -03 86.4 57.5 53.5 32.9 KDH09.04 89.9 45 39 50:9 KDH09 -05 85.3 20 12 73.3 KDH09 -06 85 31 20 65 KDH09 -07 87 28 24 63 KDH09 -08 86.1 36 30.5 55.6 KDH09 -09 85.7 41 38 47.7 101109 -10 87.2 40 25 62.2 KDH09 -11 84.4 34 21 63.4 KDH09 -12 85.5 25 21 64.5 Ave 87.5 36.5 30.3 57.3 Project No.: 158913 Page 4 18 December 2009 44% N ► Rowland Engineering Consultants Fig 1 — Borehole Locations • 82711 1 — imagery pats'. Jun 5. 2006 DH r.)3 Image G 2039 Digrta!Gtot+n G3 2009 Gnoglo 57' 41 962' N 152 36 143 W elms 57 it 2�»9000g1e eya aft 3024 fl O Project No 158913 18 December 2009 Page 5 i ZECO • Rowland Engineering Consultants 2.3 Material All drill holes were logged by the supervising engineer. Typical recovered material was sandy gravel consisting primarily of shale and sedimentary rock with occasional trace quartz. Due to the nature of the drill rig utilized for this project, no detailed observations of the gravel size distribution and sand content were possible. Minor layers of silty material were observed in several of the holes. In general, the deposit appeared relatively homogonous with minor stratifications typical of alluvial deposits. The remaining material on site is expected to vary similar to the gravels historically extracted from the pits. The bedrock underlying the B- Tracts pits was found to be shale in all cases with an indistinct transition from gravel to weathered bedrock in the majority of holes. Due to this indistinct transition, the drill holes were typically drilled through the more weathered bedrock, into more competent rock to verify the point of transition. 2.4 Drilling Summary The majority of holes encountered bedrock at a shallow depth. One exception was KDH09 -03 which encountered bedrock at an elevation of 32.9 ft, well below the average elevation of 57.3 ft. This correlates with several locations in Pit 1 that were successfully mined to an elevation of 36 ft indicating a zone of deeper gravel running through the center of the B- Tracts site. 3.0 SURVEY The surface and bathymetric survey was completed by Kodiak Land Surveyors (KLS) under the supervision of Jim Purdy, PLS. The survey primarily consisted of an update to a previous survey completed by KLS in 2006. On completion of the survey, KLS developed a combined surface model of the site and provided this information to RECON as a TIN file in .dwg format. The survey did not include stockpiles of processed material. Project No.: 158913 Page 6 18 December 2009 IN Rowland Engineering Consultants 4.0 RESERVE CALCULATIONS The remaining gravel reserves for the B- Tracts site were calculated by comparing the current surface to the estimated bedrock surface. Using these two surfaces, as well as property line setbacks, estimated mining recovery, and pit slopes, RECON developed a total volume for recoverable material on site. This volume is an estimate only and should be considered as +/- 20%. 4.1 Bedrock Surface Calculations Bedrock at the B- Tracts site is generally shallow and comprises the bottom of the deposit. Bedrock elevations were calculated using the surveyed collar elevation and the actual logged depth to the top of the weathered bedrock. Because of the indistinct transition from shale gravel to weathered shale bedrock, the bedrock elevation was chosen to be the point at which the drill started to encounter large shale slabs or cobbles which were assumed to be weathered bedrock. Although some amount of gravel was often found mixed with the weathered shale, it was considered un- recoverable. The bedrock surface was created using an AutoCAD generated TIN surface file. Breaklines were included where deemed appropriate. In addition, data points were added at several deep depressions in Pit 1. These depressions were below the surface generated using the drill hole data and show that a zone of deeper gravel exists under a portion of the existing pond. The bedrock terrain surrounding the B- Tracts shows a highly variable topography. As such, the bedrock surface generated by RECON was intended to represent the general elevation and trend of the bedrock, rather than the exact nature of the bedrock topography. 4.2 Restrictions For the purposes of these calculations, the gravel available for removal was restricted by a 200 ft setback from Middle Bay Road that is currently specified in the lease agreement. Pit slopes below the water table were assumed to be 2:1. It was also assumed that on average, mining would occur to within 5 ft of mapped bedrock surface. Due to the inherent inefficiencies of mining below the water table, as well as the undulating bedrock topography, gravel below this elevation was considered to be unrecoverable. Project No.: 158913 Page 7 18 December 2009 IN Rowland Engineering Consultants 4.3 Volume Results A final pit shape was generated in AutoCAD using the listed methods and restrictions and cut against the current ground surface provided by KLS. The remaining volume in the pit was calculated at 1.1M yd Due to the inherent errors introduced by generalizing the bedrock surface, the actual remaining volume may range from 0.88M to 1.32M bank yd 4.4 Gravel Recovery The amount of available material that is recovered by the operator of a material site is typically limited by both economic and operations factors. On a mature site, such as the B- Tracts material site, the predicted recovery is a significant factor when calculating the amount of remaining reserves. The amount of material that is economically recoverable is dependent on the local market and availability of alternative sources. As of 2009, no current local altematives exist to the B- Tracts gravel. Therefore, the high cost mining methods required to mine the bottoms of the existing ponds are assumed to be viable at the current time. If an altemative resource is developed at any time during the pit life, the economic competition may affect the amount of material recovered by the operator. Operationally, mining below the water table is "blind" and a certain amount of gravel is left on the bedrock floor regardless of the method used. Operations will be moved when the equipment is no longer able to recover material at or near design capacity. Actual recovery will depend on the type of equipment utilized by the operator but will be generally poor in areas that have previously been mined using draglines and yarders to near bedrock depth. In addition, some layers of poor quality gravel (high silt content) and overburden were noted during the field program. This material will be wasted during mining operations. Based on the above limitations and observations, RECON estimates that actual recovery of the remaining material will be no greater than 75 %. Using this factor, the remaining reserves at the B- Tracts site are calculated to be approximately 825,000 yd +/ -20 %. This number assumes that the current screening and crushing plant that is operated on site is removed and the gravel remaining between the two ponds is mined to the maximum possible depth. Project No.: 158913 Page 8 18 December 2009 Rowland Engineering Consultants 5.0 SUMMARY Based on the assumption that the operator will utilize appropriate equipment to mine the gravel to the maximum feasible depth, RECON estimates that the remaining gravel reserves to be 825,000 yd with a possible range of 660,000 to 990,000 yd Sincerely, Isaac Rowland, P.Eng. Project No.: 158913 Page 9 18 December 2009 4 Travis/Peterson Environmental Consulting, Inc. September 8, 2009 1369 -01 RECON, LLC 481 West Arctic Avenue Palmer, AK 99645 Attention: Mr. Isaac Rowland Engineer Michael D. Travis P.E. Principal 3305 Arctic Boulevard, Suite 102 Anchorage, Alaska 99503 Phone: 907- 522 -4337 Fax: 907 -522 -4313 e -mail: mtravisetpeci.com Laurence A. Peterson Operations Manager 329 2nd Street Fairbanks, Alaska 99701 Phone: 907- 455 -7225 Fax: 907- 455 -7228 e -mail: larry®tpeci.com RE: B- Tracts Material Site Located within Tracts B -1, B -2, B -3, & B-4A, Bell Flats Subdivision, Kodiak, AK Dear Mr. Rowland: This letter documents our visit to the B- Tracts Material Site within the Bell Flats Subdivision near Kodiak, Alaska. We first inspected the site on August 27, 2009 and then returned to the site on August 28 to meet with officials from the Alaska Department of Fish and Game, Kodiak Island Borough, and Brechan Enterprises, Inc. This letter summarizes our observations, the concerns and consensus of our meeting, and offers recommendations. August 27, 2009 Site Visit We arrived on site at about 2:00 PM. The weather was windy with light rain and the temperature was about 50° F. We started our investigation at Pit #2. Pit #2 was located in Tracts B -1 and B2 (See Attached Aerial Photograph). Pit #2 was up gradient and southwest of Pit #1. A narrow strip of land separated the two pits. The strip had some native vegetation, but the most of it had been stripped of vegetation and top soil. Brechan Enterprises, Inc., the contractor mining the pits, had stockpiled material and contoured the land. The water elevation in Pit #2 was about two feet higher than Pit #1. According to previous records, Brechan had not mined Pit #2 this year. Yet, the water quality was turbid and had a milky color. At closer inspection, I determined the water was turbid from colloidal materials. Weathered shale, slate, and greywacke material mined from the pit leached clay minerals, which produced the colloidal particles. These particles were positively charged and prevented settling. With frequent wind mixing, these particles would stay in suspension for years. I observed no drainages entering or leaving the pit. RECON, Bell Flats Material Sites 1369 -01, 9/8/2009, Page 2 We walked around the southwest side of Pit #2 where we found a small excavation (250 -feet long and 175 -feet wide). A gravel berm separated it from Pit #2. The pit contained an artesian spring. The water was clear and flowed several cubic feet per second (CFS) through an outlet. We observed a few chum salmon, many pink salmon, and schools of Dolly Varden milling in the pond. The pond fed a 2,800 -foot long, artificial channel that skirted the southern banks of Pit #2 and Pit #1. The channel width varied from 30 to 75 feet. The water was clear for the length of the channel (Photographs #1 and #2). We observed several hundred pink salmon spawning in the channel. The clean gravel substrate and adequate spring water provided excellent spawning habitat for salmon. The channel appeared be dug independently of the pits. The channel water elevation appeared to match the water level in Pit #2. However, the channel water elevation at the southwest corner of Pit #1 was about two feet higher than the water level in Pit #1. The channel water level matched the Pit #1 water level midway across the pit's southern border. At the Pit #1 southeast corner, the channel water level was about two feet lower than Pit #1. After reviewing aerial photography of the area, I believe the source of the artesian spring was groundwater from Russian Creek. The springs were about 600 feet north of the active Russian Creek floodplain. Russian Creek runs along bedrock that perches the water table between 10 to 12 feet above the springs. The pond and channel intercepts this flow and flumes it back to Russian Creek. The source of the water in Pits #1 & 2 was discharge from the mountains north of the site. Although the pits were within the Russian Creek floodplain, they were positioned along the base of hills leading to the mountains. Water from rain and snowmelt percolated into the substrate and discharged into the floodplain. The excavations intercepted this discharge. Pit #2 was two feet higher than Pit #1 because it had no outlet. Water roses until the pit had enough hydraulic head to force the water through the surrounding gravels. The drainage channel intercepted the groundwater from Russian Creek and diverted it way from the pits. At the time of our inspection, Brechan recently mined Pit #1 with an excavator. The mining activity disturbed the broken weathered material and released colloidal clay particles. This caused the water to become turbid with a milky color. Water was discharging into the channel at the southeast corner of the pit through a 36 -inch culvert. I estimated the flow to be 3 CFS. We observed several pink salmon swimming up the culvert and into the pit. We walked over the berm and observed the milky- colored water discharge into the channel (Photograph #3). The flow discharging from the culvert was about a tenth of the flow in the channel. The water mixed along the west bank of the channel and the milky color disappeared several hundred feet downstream. There was no screen across the outlet of the culvert to prevent fish from entering Pit #1. Travis/Peterson Environmental Consulting, Inc. RECON, Bell Flats Material Sites 1369 -01, 9/8/2009, Page 3 You called Mr. Michael Martin, President of Brechan Enterprises, and his representative, Rusty, met us at the Pit #1 culvert. We pointed out to him that Pit #1 was discharging turbid water into the spawning channel and his culvert did not have a screen. Rusty stated that he was surprised that the water level was high enough to discharge because usually it is not. He also said that he had installed a fish screen across the culvert, but an area resident had removed it. Rusty showed us their failed attempt to use a siltation curtain. The curtain was rumpled and partially submerged within a 50 -foot radius around the culvert inlet. We discussed some options before deciding that Brechan should place berm consisting of clean gravel across the front of the culvert inlet to stop the discharge. Rusty also agreed to install a fish screen across the outlet. I warned Rusty that the pond water elevation would rise about two feet before it equalizes and he should monitor the southwest corner of the pit. The berm there will need to be reinforced and raised to prevent pit water from breeching and entering the channel. We left the site after reaching these conclusions. August 28 Site Visit We met at the gate to Pit #1 at about 9:30 AM. The weather was windy, heavy rain, and about 45° F. In attendance were Mr. Will Frost (Habitat Biologist) and Donn Tracy (Sport Fishery Biologist) of the Alaska Department of Fish and Game. Mr. Woody Koning, Director of Engineering and Facilities, and Bud Cassidy, Director of Community Development, represented the Kodiak Island Borough. Mr. Martin, Mr. Jim Graham, and Mr. Jascha Zbitnoff represented Brechan. We drove in several vehicles to the culvert outlet at Pit #1. Brechan had constructed a gravel berm around the culvert inlet (Photograph #4) and installed a fish screen across the outlet. I observed several pools of muddy water from cut slopes and stockpiles draining into the pond. Everyone observed the spawning pinks in the channel. The new berm had some turbid water seeping along the bottom. The milky water mixed with the channel water and quickly dispersed. The water level in Pit #1 had risen about six inches since the previous day. We discussed the water quality in the pits. I explained why the colloidal particles existed in the pits. I also stated that the milky- colored water had a low bed load. In other words, the water had a low concentration of settable solids. Thus. the water looks bad but has a low impact on spawning fish. Mr. Tracy said he believed the artificial channel was important for the salmon population of Russian Creek. He wanted it protected. In long -range plans, Mr. Tracy wanted the ponds connected and an outlet established to allow for red salmon to rear. We discussed possible long -term solutions for habitat preservation and reducing impacts to water quality. We determined the following course of action: 1. Brechan will re -grade the channel next year. According to Brechan, the channel gradually filled and lifted its elevation above Pit #1. Mr. Frost said Brechan must submit their plans to him and he will issue Alaska Statue Title 16.05.871 permit for the work. Travis/Peterson Environmental Consulting, Inc. RECON, Bell Flats Material Sites 1369 -01, 9/8/2009, Page 4 Mr. Frost said he would authorize a May through June work window. Mr. Martin said this was acceptable and he would send him his plan. 2. Brechan will reinforce the berm separating the pits from the channel and raise it if necessary. 3. Brechan will maintain the berm across the culvert inlet. 4. The Borough, you, and I believe it is in the best interest of Borough that a reclamation plan is filed the Alaska Department of Natural Resources. You said that you would take the lead to develop the plan. 5. The Borough, you, and I also believe that it is in the best interest of the Borough to develop a storm water pollution prevent plan (SWPPP) to minimize water quality impacts to Russian Creek. The SWPPP will discuss mining techniques, maintaining the berms, and directing offsite muddy water from entering the ponds. It will also have a pollution prevention plan to prevent spills and cleanup contaminated soil. My company will develop the SWPPP. 6. When the pits are exhausted of materials, the pits will be connected. Brechan will push overburden back into the ponds and make an irregular shoreline. The slopes will be stabilized and revegetated. 7. After the slopes have been stabilized, the pond outlet will be established for fish passage. Thank you for using my services for this interesting project. Please call me if you have any questions about this report. Sincerely, Michael D. Travis, P.E. Principal Enclosures: Aerial Photograph. Picture 1— Drainage Channel Picture 2 — Drainage Channel Picture 3 — Pit #1 discharge Picture 4 — New berm across culvert inlet Travis/Peterson Environmental Consulting, Inc. ti Fig 3 - Kodiak B- Tracts Gravel Pit — Site Map 0 a 1 p 0 Maint. Shop Groundwater Springs Pit 2 Material Processing and Stockpile Area luh.ye C 21 ( Oppali,10,4 1.i 4I '�' 41 N 112 3u•1JO elo• 1'rt OverbUrae„ Stoc . Pit 1 AREA To BE MINED -- 52 Acres Googh S . 7 Bells Flats Gravel Lease - 2010 to 2020 tut don oanulliub Ken., mph.. eon* IrngsrAnnect Imp, 1s 0.1 July Kodiak Island Borough GIS httpJ /www.kodlak.k.&g (907) 4869976 � 0 500 1,000 2,000 Feet photo Land owned by Kodiak Island Borough Currently leased Brechan Enterprises Produces gravel for Asphalt and Concrete Currently the only source of quality gravel near the City of Kodiak RECON - 01-fir - � mage —v Gat Groundwater Springs Pit 2 Office Material Processing and Stockpile Area Ove0oPtaen Sto ckpil es Pit 1 0 �o� Google Drilling completed by Mill Bay Drilling Survey completed by Kodiak Land Surveyors Resource calculations completed by RECON, LLC photo 1 RECON Fig 1 - Borehole Locations • .J Image G 2009 EagaalGlooe e12009 Google 827 9 Imagery Date: Jae 5.2006 57' 41 _96T N 152' 36.143 W elev 57 8 2009Googlc Eye alt 2024 0 0 GEOLOGIC LOG TEST BORE: KDH09 -06 e a m l 1 Ground Elev.: 53.0' Total Depth : 3 Bedrock EI.o 6570' Bottom Elev.: 5 =0 Reference: Vsg•toasm Nom RemaASl Locution: Kodiak. AK ■ ■ ■ ■ ■ 1 ■ ■ ■ ■ ■ ■ ■ 1 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 7 10 5 20 30 RECON, LLC Reru. CnOwww, , Cen.Jtmte 411 W. Amt. M Palmer. Aimee 0060 R 007) 706-3630 Pro;.ct 90.: 0800 Sh.efZefL Log /W — Project Name: 2 — Trocte klatarfol SRe Locate i i t'iaU Method Used. Tr: ane .! .tNl casino 819 Type: Well D r ot. 11 -0 r. f 0 _ 4 10nd 3 -09 Dot. C Crt' C o tor: m ua1 1 Ro B. p.: 1-03 - Shallow bedrock around pit perimeter Deeper zone of gravel in center of property Q9 Average bedrock depth of 30.3 ft Generally good gravel throughout photo `mato Assumptions Operator will utilize underwater mining methods such as dragline or dredging. Mining could be completed to within an average of 5 ft of bedrock surface. Operator will achieve 75% recovery of available gravel. Results Calculated 825,000 yd of recoverable gravel remaining. Based on the limited number of drill holes, estimate is assumed to be +/- 20%, or between 660,000 - 990,000 yd3. 2LLt S DNR Reclamation Plan EPA StormWater Pollution Prevention Plan (SWPPP) State of Alaska Mining License F &G habitat permit Completion of Coastal Zone Consistency Questionnaire Corp of Engineers 404 (Dredge and Fill) Permit ,,mat o 10 yr Plan Reconstruction of Diversion Ditch Equipment /Debris Removal Pond Reclamation Site Grading /Re- contouring Tiered Bonding photo n / z / / / i ii / . /9J ale / i 4 /17 TYPICAL CROSS SECTION OF DIVERSION CHANNEL 2:1 Slope 20' Notes: 1.) Channel width may vary from 15 -30 ft or as specified by ADF&C 2.) The separation berm between channel and the ponds be greater than 20' as needed. 20' SEPARATION BERM z:,��,�� �,-. DIVERSION CHANNEL �r I ..' , ,11II� , 11I q .. 1 . . , , . RECON wwwa.v.w. n coo Minimum 4 it Berm Height &Traeb Gr.ed Pt DRAT TYPICAL SECTION - CHANNEL L EXISTING POND photo Shores graded to 3:1 or flatter Shore line made undulating and irregular Shores covered with topsoil and allowed to re- vegetate High water overflow constructed an_O L__ l� photo LLB: `iLlo`l 1 RECON CROSS SECTION OF POND OUTFLOW 24.0' 6.0' Normal Channel 24" OF CLASS 2 RIPRAP Pond PLAN VIEW OF OUTFLOW Channel - - k 4 r ro.wa wa: w n.,.u..• B-Trmcb Orr. Pk OUTFLOW DIANNE. 2010 -2011 Removal of excess equipment, contaminated soil, and debris from the site Stabilization of the diversion ditch channel 2020 or end of mine life Reclamation of pond shore Removal of remaining equipment and buildings Exposed gravel re- contoured and spread with topsoil. RECON Tiered System Initial amount of $250,000 On completion of diversion ditch stabilization bond will be reduced to $200,000 On removal of all unused equipment, debris, and contaminated soils bond will be reduced to $150,000 STATUS UPDATE B- TRACTS GRAVEL SITE — WOMENS BAY MAY 6, 2010 Kodiak ZslarfzdftoroHgh Resource Afauagemeut 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9351 Fax (907) 486 -9395 E -mail: rscholze@ kodiakak.us 1. SECURITY: A section pertaining to security has been added to the proposed lease addressing installation of traffic control signs and of gates at the two points of ingress /egress, clearing of brush for line of sight, installation of security cameras, and placement of a caretaker /night watchman residence on site to be continuously occupied during seasonal operations. 2. WATER QUALITY: A hydrologist's report will be provided by Travis/Peterson Environmental Consulting, Inc. prior to the May 13th work session. This report will address the correlation between the water table of the ponds and water level in nearby residential wells, among other questions. 3. AIR QUALITY/NOISE: KIB Code Chapter 17.105.060 addresses off -site impacts related to noise, odor, smoke and dust in the Industrial Zoning District. Stipulation 6e of Exhibit A, attached to the proposed lease, is also intended to provide a control by restricting hours of operation. The operator (BEI) currently has for the site an MG -9 Permit, the standard general air quality permit issued by ADEC for rock crushers. The permit is active until 2014. This requires that a visual opacity reading by a certified reader be less than 20% opacity. All reports submitted by the operator have indicated readings ranging from 10 % -15 %, which, according to ADEC, is standard for a rock crusher. Stipulation 6g of Exhibit A, attached to the proposed lease, addresses dust control by requiring that a dust pallative be applied annually by the operator to control dust on designated haul roads in periods of dry weather. It specifically requires that the operator comply with applicable ADEC regulations regarding fugitive dust specifically, and air quality control in general. 4. HABITAT PROTECTION: An Alaska Dept. of Fish and Game (ADFG) habitat biologist and sport fishery biologist have each been on site and offered suggestions which are being incorporated into the Reclamation Plan. They indicate that there is no historical evidence that the operation of the gravel pits has harmed either the original salmon run in Russian Creek or the supplemental run that has taken up in the man -made diversion channel. A component of the Reclamation Plan is intended to address bank stabilization of the channel and berm in order to protect salmon habitat and spawning grounds in the channel. An ADFG Fish Habitat permit will be required for this work. LEASE AND MATERIAL SALES AGREEMENT Stipulations Regarding Gravel Mining Operation EXHIBIT A 1. For all public works contracts for the Kodiak Island Borough, the City of Kodiak, or other State or Federal agencies that are subject to competitive bidding, Tenant shall (a) quote materials pricing to bidders for the purpose of allowing such bidders to prepare their bid proposals ( "the quoted price ") and (b) thereafter sell to successful bidders materials at the quoted price. 2. Tenant acknowledges that Landlord has installed three water monitoring wells identified as KDH09 -07, -08 and -09. Tenant further acknowledges that it knows where these wells are located and will preserve and protect them. 3. Tenant acknowledges that the gravel to be mined from the premises shall be used primarily for the production of concrete and asphalt. 4. Tenant acknowledges the importance of mining gravel from the ponds to the deepest depth practical. In order to achieve this, mining of the spit must retain a minimum one hundred (100) foot spit width to separate the two ponds and facilitate efficiency of future land based dragline operations for excavating the bottom of the ponds. Final removal of the spit itself will proceed only with approval of the Borough Manager or designee. 5. Tenant shall coordinate with all appropriate regulatory agencies regarding its extraction and reclamation activities to assure regulatory compliance and minimize potential impacts of its activities. 6. In addition to the terms of the reclamation plan, Tenant shall comply will the following performance standards: a. Buffer Area. Buffer zones as described in the March 1, 2007 BEI letter, and as shown on exhibit A to that letter, shall be maintained and kept in a topography that blends smoothly into the surrounding area. b. Overburden. Overburden shall be stripped, stockpiled, placed, and leveled in the cleared portion of the designated buffer area or transported off site. Existing berms will remain in place for the reduction of visual and noise impacts on nearby properties. Upon completion of excavation, berms will conform to the reclamation plan. c. Trees. No brush, trees, stumps, or parts of trees shall be placed in the excavated area or buffer area. Exhibit A Page 1 of 2 d. Access. Ingress and egress shall be limited to existing points on Middle Bay Drive. Tenant shall not change its point of ingress and egress to the premises without the prior written consent of the KIB Manager or designee. e. Hours of Operation. Tenant shall limit hours of operation on the premises to 7:00 a.m. to 7:00 p.m. Monday through Saturday. Only routine maintenance on equipment is allowed on Sundays between 7:00 a.m. to 7:00 p.m. There will be no work of any kind on Memorial Day, July 4 Labor Day, Thanksgiving and Christmas. f. Haul Road. It is the intent of this agreement to keep loaded trucks off of Middle Bay Drive as much as possible. For purposes of this agreement, Tenant shall operate its vehicles at no more than twenty -five (25) miles per hour on the following roads: A. Loaded trucks shall use Middle Bay Drive at its intersection with Bells Flats Road, then Bells Flats Road and South Sargent Creek Road while traveling between the premises and Chiniak Highway. B. Unloaded trucks may use Middle Bay Drive. C. Also included as a designated haul road is Salmonberry Drive fronting Block 3, Tract A, Bells Flats Alaska Subdivision. If there is a temporary closure, by reason of emergency, or for repair or improvement requiring use of an alternative route, BEI shall notify the Borough manager or designee of the reason and duration, which situation will not create liability for Landlord. g. Dust Control. In periods of dry weather when the haul roads become dusty, Tenant shall work with the Womens Bay Service Area to reduce the dust created by its vehicles. A dust pallative will be applied annually by BEI. Relative to its operations on the premises, Tenant shall comply with applicable Alaska Department of Environmental Conservation regulations regarding fugitive dust specifically, and air quality control in general. h. Security. In the interest of increasing site security, the following will be accomplished before June 30, 2010: 1. in collaboration with the Womens Bay Service Area, BEI will install at the two ingress /egress points indentified in 6d with KIB approved traffic control signs that comply with State regulations, and will remove brush to improve line of sight; and, 2. BEI will install gates at the two ingress /egress points to be locked at all times except during authorized hours of operation. In addition, BEI will actively pursue installation of security cameras at the two ingress /egress points identified, as well as the option to locate a caretaker /night watchman residence on site to be continuously occupied during seasonal operations at a minimum. i. Hazardous Materials. The premises shall not be used for the storing of any hazardous material, as defined in AS 29.35.590(6), beyond what is placed within the tanks on Tenant's trucks, dozers and excavators. Exhibit A Page 2 of 2 TITLE: Contract No. FY2010 -30 Solid Waste Collection Contract. SUMMARY: In May 2009, the collection services. (SWMP) which was Two proposals were received. KIB staff selected the proposal submitted by Alaska Pacific Environmental Services, LLC dba Alaska Waste. Staff determined that the Alaska Waste proposal provided the most responsive approach to reach KIB's solid waste goals as identified in the Solid Waste Management Plan and the KIB Strategic Plan. Alaska Waste committed to adjust their service delivery as needed to accommodate future progressive steps toward KIB's solid waste goals and needs. Staff has negotiated the details of the contract with Alaska Waste and recommends approval. The contract was presented to the Assembly on February 18, March 1, April 1, and April 15, 2010. A current copy of the contract is available on the website. FISCAL NOTES: Account No.: Amount Budgeted: Expenditure Required: APPROVAL FOR AGENDA: KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING ITEM NO: 12.A KIB issued a request for proposal (RFP) for solid waste and recycling This RFP was developed based on the Solid Waste Management Plan approved by the Assembly on August 21, 2008. THE MOTION THAT IS BEFORE THE ASSEMBLY IS: Move to authorize the manager to execute Contract No. FY2010 -30 with Alaska Pacific Environmental Services, LLC of Anchorage, AK for the Solid Waste Collection Services. Notes regarding this contract. • Contract No. FY2010 -30 was first presented to the Assembly on February 18, 2010 regular meeting. • It was then postponed to the March 1, 2010 meeting, April 1, 2010 meeting, April 15, 2010, and then to May 6, 2010. • A copy of the original contract is available in the February 18, 2010 packet. You may access the packet in the Borough records section or the assembly meetings section on the web. • A revised contract was made available to the Assembly on April 15, 2010 regular meeting. It is now available on the Kodiak Island Borough website. • On March 25, 2010 and April 8, 2010 work sessions, Solid waste collection contract options were distributed to the Assembly. Both these documents are available in this packet. • For additional information, please contact the Clerk's Office at 486 -9310. SOLID WASTE COLLECTION CONTRACT OPTIONS Assembly Work Session 4-8 -2010 Below are the adjustments to Option 2 and Option 3 requested by the Assembly during their work session on March 25, 2010 and the direction given during their regular meeting April 1, 2010. Option 1 remains in the memo to clarify for the Assembly the evolution of rate payer costs. Option 1 is the system approved by the Assembly prior to the release of the RFP. This system would collect waste from residents using roll carts with the monthly rate dependent on the size of the cart selected. Residents in the outlying areas would be assigned a bear cart. The primary reason for implementing a cart based system is to establish an equitable rate structure that assigns the service and disposal costs to residents and small businesses that generate the waste. The following table details the proposed collection rates: Proposed Variable Cart Rate System Variable Rates Variable Rates 64 • : Ilon: $34.09 64 • allon: $34.09 All residential dumpsters would be removed from the Borough and the City limits. Option 2 retains residential dumpsters throughout the road system with the exception of city limits where residential dumpsters will be removed and the variable cart system provided. Collection rates for City residents will be based on the volume of the cart selected plus any excess waste surcharges/credits. Charges to customers outside city limits are uniform and include a dumpster clean-up charge and any excess waste surcharge /credit based on actual residential tons disposed at the landfill. The following table details the proposed rates for Option 2: Residential Collection Option 2 Fixed Rate Variable Rates Dum . ter Clean -u • : $ 2.00 64 • allon: $ 34.09 Plus Excess Waste Surcharge Plus Excess Waste Surcharge All residential dumpsters will be removed from the city limits and carts will be mandatory within city limits. Page 1 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 4.8.10 Option 3 retains residential dumpsters throughout the road system with the exception of city limits where residential dumpsters will be removed and the variable cart system provided. The rate for city customers is based on the 96 gallon cart rate of $38.31. As in Option 2, residential customers outside city limits will be charged a fixed rate of $38.31, a dumpster clean -up charge and, if warranted, an excess waste surcharge /credit. This system does not represent any semblance of a Pay -As- You -Throw system. The following table details the proposed rates for Option 3: Residential Collection Option 3 Fixed Rate w /surcha • e Dum • ster Clean -u • : $ 2.00 KIB Fixed Rate: $ 40.31 Plus Excess Waste Surcharge Fixed Rate Cit Fixed Rate: $38.31 Plus Excess Waste Surcharge All residential dumpsters will be removed from city limits and carts will be mandatory inside city limits. Excess Waste Surcharge The excess waste surcharge will occur when an unknown quantity of excess waste is generated throughout the collection system. It should be made clear that this excess waste may occur from a multitude of sources and should not be considered as only coming from City residents. Borough residents, utilizing residential dumpsters, routinely dispose of large volumes of waste, including bulky items and construction demolition debris. Commercial waste generators also routinely utilize residential dumpsters to dispose of their waste including those in the construction trade. The Assembly has previously acknowledged that this abuse to the system will occur. The cost for this additional waste will be charged evenly to all residential rate payers according to actual excess tons delivered to the landfill for disposal from residential sources. Borough staff is continuing its negotiation with the Contractor regarding what tonnage amount will be used as a the maximum limit of waste before the excess waste surcharge will be implemented and; what mechanism will best suit the Borough and Contractor's needs on when to invoice residential customers. Senior Discounts Senior Discounts were not assumed in the Solid Waste and Recycling Collection Services RFP; therefore, any discounts granted need to be funded by either the KIB or subsidized by the rate payers. Staff has determined that the most efficient way to provide this discount is to include a Page 2 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 4.8.10 line item in the enterprise (landfill) expense budget based on an assumed number of seniors. At this time staff has been directed to assume 400 seniors. The following table details the financial impact of the $7.00 discount being proposed by the Assembly. Summary Table exclusive of proposed Senior Discount: COMP( cts n System KiB City Pay -As -You -Throw System 32 !allow $28.90 32 , allon: $28.90 96 . :Non: $38.31 96 • allon: $38.31 Option 2 Status Quo with City Carts Fixed Rate w /surcharge Variable Rates w /surcharge Dum • = tars: $40.31* 64 !anon: $34.09* Dumpsters: $40.31* Carts: $38.31* *Plus excess waste surcharge. Senior Discount t Page 3 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 4.8.10 SOLID W COLLECTION CONTRACT OPTIONS frwrottA 4111 402. 3-25-2010 cu' vke, Se S 4i r,A Under consideration below are three options for rate payers with the exception of residents beyond Deadman's Curve (Bens Flats, Chiniak and Pasagshak). Residents in that area will still pay the fixed rate of $38.31 and $2.52 for dumpster dean -up costs for a total of $40.83. The first option is the residential collection system proposed by Alaska Waste which reflects the Pay -As -You Throw structure as outlined in KIB's Solid Waste and Recycling Collection Services RFP (May 2009); and the second and third options, based primarily on a "status quo" condition, being proposed by the KIB Assembly. Option 1 is the system approved by the Assembly prior to the release of the RFP. This system would collect waste from residents using roll carts with the monthty rate dependent on the size of the cart selected. Residents in the outlying areas would be assigned a bear cart. The primary reason for implementing a cart based system is to establish an equitable rate structure that assigns the service and disposal costs to residents and small businesses that generate the waste. The following table details the proposed collection rates: Variable Rates Variable Rates 64 • • : $34.09 64.x- • :.$34.09 AN residential dumpsters would be removed from the Borough and the City limits. Option 2 would keep the community dumpsters in the populated areas of the Borough while providing the variable cart system to the residents of Kodiak City. Collection rates for City residents would be based on the volume of the cart selected whereas the rate for Borough residents would be a fixed rate with a surcharge for excess waste. The proposed rate for Borough residents assumes the 1,580 residential customers will dispose of 70 pounds per week or 55 tons for the entire rate base (1,580 customers x 70 pounds / 2,000 pounds per ton). Any waste amounts collected over the assumed weekly amount of 55 tons would be invoiced monthly as an additional surcharge to the Borough residents. The calculation of the surcharge is detailed at the end of this memo. The following table detaas the proposed rates for Option 2: r ,, Fixed Rate w/ Variable Rates •:$1.65 64. :$34.09 Excess Waste Surcharge (see e • lion after • • • 3 Page 1 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 3.25.10 Some residents of Kodiak City will benefit from this option because they will have a cart that is collected at their driveway and if they have a large item or excessive waste, they can easily drive to a KIB dumpster to dispose of their waste at no additional charge to them. Because of this, and other potential, undetermined system abuses (commercial dumping), the proposed rates for Borough customers must assume a higher volume of waste and therefore the higher rate; small waste generators, such as senior citizens, will pay a higher garbage bill to subsidize these larger waste generators and the anticipated abuse of the system that is expected to occur. All residential dumpsters would be removed from the City limits. Option 3 would keep the community dumpsters in the populated areas of the Borough and provide a cart system with a fixed rate to Kodiak City residential customers. The rate for City customers would be the 96 gallon cart rate of $38.31. As in Option 2, Borough residential customers would be charged a fixed rate of $38.31, a dumpster clean-up charge and, if warranted, as in Option 2, an excess waste surcharge. This system does not represent any semblance of a Pay -As- You -Throw system. The following table details the proposed rates for Option 3: Resicienti <il i',0110(1. )n Option Fixed Rate w /surcha ! e Fixed Rate Dum • ter Clean -u • : $ 1.65 Excess Waste Surcha e All residential dumpsters would be removed from the City limits. The excess waste surcharge represents the additional tonnage amounts, brought to the KIB landfill for disposal and therefore this cost would have to be passed back to the Borough rate payers (adjusted relative to the number of customers). The surcharge would simply be all amounts over the allotted 55 tons multiplied by the disposal rate and divided by the Borough customer count. The following table provides an example of surcharges assuming various additional waste tonnage amounts, multiplied by the $150 per ton disposal fee and then allocated over 1,580 Borough customers: Fx 111 t, - , St;rr1 C At 10% over • : • : alotment 5.5 23.94 $3 591.74 $2.27 At 25% over ton : • : allotment 13.8 59.86 $8 979.34 $5.68 At 35% over • : • : allotment 19.4 83.81 $12 571.07 $7.96 At 45% over • : , allotment 24.9 107.75 $16,162.81 $10.23 Page 2 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 3.25.10 Senior Discounts we not assumed in the Solid Waste and Recycling Collection Services RFP; therefore, any discounts granted need to be funded by either the KIB or subsidized by the aN of the residential rate payers, including those past Deadman's Curve. There are 370 seniors currently reeving a discounted rate. Assuming 370 seniors, the foNowing table detail the finandal impact of various discounts to either the KIB General Fund or all residential rate payers. $5.00 $1 850 $22 200 $0.74 $10.00 $3,700 $44,400 $1.47 Several jurisdictions provide discounted rates to seniors based on a financial need and not an age test. If this is considered by the KIB, the financial impact to either the General Fund or all residential rate payers would be less than the above calculations. Summary Table K City 32 • : • : $28.90 32 • : • : $28.90 : $38.31 96 • : • $38.31 Alternative 2 Fixed Rate wisurc • Variable Rates • tars: $44.33* $34.09 • • tern: $39.96* Carts: $38.31 "Plus excess waste surcharge as described previously. Page 3 of 3 Options for Solid Waste Collection Contract — KIB Assembly WS 3.25.10 April 14, 2010 Kodiak Island Borough Assembly, First, as residents of the Alder Lane, Hillcrest St area we want to thank you for listening to our concerns about the garbage pickup in our area. We still have some concerns now, in that we hear that our area, will still be included in the street garbage cart pickup. • Where do they plan on having us put our garbage carts since we live on a narrow, steep street • How are the residents going to get their cans out to the pickup area, some of us have numerous stairs and no place to store these carts • There are several homes that the garbage trucks won't be able to get to • How is it going to be controlled with blowing trash, we have concerns that our backyards will be filling up with that trash • Will the carts have locks and each resident have a key, and what happens if the keys are lost • On Hillcrest there is a multi family apartment building with 6 or 7 residents, with no area for garbage cart pickup, where will these carts be stored • We don't want to lose a limited parking space to store the garbage carts. • What will the garbage trucks use for a turnaround, residents don't want their parking areas damaged due to weight of these trucks • Truck service has never worked for the vendor or the resident in previous years which is why we now have a dumpster at the bottom of the hill • Hillcrest ends in a dead end and this area is not plowed or maintained during the winter storms. How is garbage pickup going to be addressed at that time. Also where are these residents to keep their carts, they certainly can't put them in someone elses drive way • Most all of us recycle and have small amounts of trash and are in hopes that the residents of Kodiak will join in these efforts to become a green community Thanks again for your consideration of our unique neighborhood situation. Sincerely, Joyce Gregory James & Geneneiva Pearson Vic & Connie Downing John & Barbara Anthony John & Jenny Hansen Christie Chernoff Jeff & Angie Johnson A r hr 2010 Jessica Kilborn From: Nova Javier Sent: Monday, April 26, 2010 3:25 PM To: Rick Gifford; Woody Koning; Tracy L. Mitchell Cc: Branson; Friend; fulp; jeffrey; kaplan; lynch; Selby; stutes; Branson; Friend; Jeffrey; Kaplan; Lynch; Stutes Subject: FW: solid waste contract Hello everyone, This is a request to forward and strictly information. PLEASE DO NOT RESPOND and do not discuss over Email as you may run into Serial Meetings Violation under Open Meetings Act. Thank you, Nova Nova M. Javier, MMC Borough Clerk PUBLIC RECORDS LAW DISCLOSURE: This e-mail and responses to this email are subject to provisions of the Alaska Statutes and may be made available to the public upon request. From: stutes @gci.net [mailto:stutes @gci.net] Sent: Monday, April 26, 2010 2:21 PM To: Nova Javier Subject: solid waste contract Hi Nova, If you would please pass this on to Rick Gifford as well as other assembly members I would appreciate it. noticed in reading the contract, there is no escape clause for the borough. The only clause I could find which slightly pertaining to this would be the clause that says in order for changes to be made both the borough and the contractor need to agree on these changes, and if they don't it goes to arbitration . I would like to see something in this contract that gives the borough unilateral rights to change this contract if the health, welfare or safety of the citizens of this community are at risk. If there are bear problems, or other safety issues which come up, we must be in a position to immediately make a change, whether or not the contractor agrees. This is, after all a 7 years contract and I believe this community needs to know we can address, as well as make any and all immediate changes necessary in order to secure their safety or welfare. I would think this could be said in one paragraph: "The borough reserves the right unilaterally to make any immediate changes deemed necessary in order to protect the health, welfare and safety of the citizens of the Kodiak Island Borough. " Thank You Louise 1 TO: KODIAK ISLAND BOROUGH OFFICE of the MANAGER MEMORANDUM The Honorable Mayor and Assembly of the Kodiak Island Borough FROM: Rick Gifford, Borough Manager RN DATE: April 29, 2010 SUBJECT: Questions to Solid Waste Collection Services Contract I received the following two questions about the Solid Waste Collection Services Contract. My response is below each question: 1. Question by Assembly member Stutes: "I noticed in reading the contract, there is no escape clause for the borough. The only clause I could find which slightly pertaining to this would be the clause that says in order for changes to be made both the borough and the contractor need to agree on these changes, and if they don't it goes to arbitration. I would like to see something in this contract that gives the borough unilateral rights to change this contract if the health, welfare or safety of the citizens of this community are at risk. If there are bear problems, or other safety issues which come up, we must be in a position to immediately make a change, whether or not the contractor agrees. This is, after all a 7 years contract and I believe this community needs to know we can address, as well as make any and all immediate changes necessary in order to secure their safety or welfare. I would think this could be said in one paragraph: `The borough reserves the right unilaterally to make any immediate changes deemed necessary in order to protect the health, welfare and safety of the citizens of the Kodiak Island Borough. ' Response: Article 12: Change in Scope of Service allows the KIB and the contractor to adjust the scope of services for any reasonable reason, such as new developments in collection technologies that would improve contract service efficiency and reduce the contractor service fee, pollution or environmental impact; a program that would increase diversion; and changes in operations necessitated by a change in law. This provision does need to be negotiated and agreed upon, but should cover most non - emergency situations. Questions to Solid Waste Collection Services Contract Page 2 Article 9: Miscellaneous Performance Obligations, Section e, KIB's Protection of Public Safety, Health, and Welfare (page 12) covers MB if immediate changes are necessary to protect the public's health, safety, and welfare. 2. Question by Assembly member Jeffrey: "Does the Contract address the concerns of those residents who reside in the Alder Lane and the Hillcrest Street area ?" In Attachment 7: General Collection Performance Obligations and Standards, Section 7 - 7.05 Other Special Customer Services (page 63), the contract allows the contractor to provide special services following approval by KIB based on scope of services. In addition, Attachment 4 - 4.02 Collection in Dumpsters or Compactors, Section c allows the contractor to provide dumpsters in alternative number and collection frequency options. Based on these two sections, the contractor would be able to meet with those residents to develop a solution that would fit their needs based on their location if road side service is not possible. New Solid Waste Collection Contract Summary 1. CUSTOMER BILLING: 4 -15 -2010 Under the current contract residential customers living within city sewer /water service areas are billed by the City of Kodiak, and all others are billed by the Borough. The Borough receives customer service calls and is responsible for fee collection. The new contract provides for billing and customer service calls as a responsibility of Alaska Waste relieving Borough staff of the burden of billing, collection, and customer service response. 2. PAYMENT FOR COLLECTION SERVICES: Under the current contract the hauler is paid on a "partial piecework basis" i.e. quantity of dumpster tips + rent for containers + number of city residences, etc. The new contract provides that Alaska Waste will pay KIB for actual tons of waste delivered to the landfill. Alaska Waste will retain the remainder of the fee charged to customers. 3. FEE AMOUNTS CHARGED TO RESIDENTIAL CUSTOMERS: Under the current contract fee amounts are proposed by staff based on estimated numbers of city residences + estimated container rents and tips multiplied by contractor unit prices that are negotiated annually. Staff then adds the estimated landfill expenses for the total fee. The new contract provides fee components displayed in the table below with annual inflators indicated in the second column: FEE COMPONENT INFLATOR a. Collection & Admin Costs 75% of CPI b. Fuel Costs 75% of PPI c. Cart Rental No Inflator d. Depreciation /Lease Cost No Inflator e. Disposal Cost (pass through to KIB) Actual f. Margin (7.5% of a thru e above) No Inflator Accordingly each type of collection service may be adjusted annually during the term of the contract. 4. COLLECTION SERVICES: Under the current contract residences within the city limits may set -out at the curb or self -haul to any residential dumpster. All other residences must self -haul to a residential dumpster, with the exception of multi- family residences which are served with commercial dumpsters throughout the service area. The new contract provides curbside pick -up at a variable rate for residences within the city limits. Customers will be provided the cart size of their choice, and charged accordingly. Residential dumpsters within the city will be removed. Customers outside city limits will self -haul to residential dumpsters. Multi- family residences will be served with commercial dumpsters. 5. RESIDENTIAL FEES: Under the current contract all residential customers are charged 31.00Th per month for collection and disposal. The new contract provides for the following residential fees: Residential customers outside city City residential- 32 gallon City residential- 64 gallon City residential- 96 gallon All senior citizens (over 65) may apply for $7.00 /month discount 6. ADJUSTED TONNAGE AMOUNT: $41.31 + excess waste surcharge 28.90 + excess waste surcharge 34.09 + excess waste surcharge 38.31 + excess waste surcharge Residential tons of waste delivered to the landfill will be totaled annually. If total tons exceed the average of 77 tons per week, the excess disposal cost ($150 /ton) will be evenly spread over all residential customers in the form of excess waste surcharge on each bill. jou 2010 EXCLUSIVE SERVICE CONTRACT FOR RESIDENTIAL AND COMMERCIAL REFUSE COLLECTION AND TRANSPORTATION To MB LANDFILL BETWEEN KODIAK ISLAND BOROUGH AND ALASKA PACIFIC ENVIRONMENTAL SERVICE, LLC ■ I COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK TABLE OF CONTENTS RECITALS 8 ARTICLE 1 EXCLUSIVE CONTRACT 8 ARTICLE 2 REPRESENTATIONS AND WARRANTIES 9 2.01 Of Contractor 9 2.02 Of KIB 9 ARTICLE 3 TERM OF CONTRACT 9 3.01 Term 9 3.02 Survival of Certain Provisions 9 3.03 Contractor's Obligations Upon Expiration or Termination 10 3.04 New Contract 10 ARTICLE 4 REFUSE COLLECTION AND TRANSPORTATION TO KIB LANDFILL 10 4.01 Scope of Services and Specifications 10 ARTICLE 5 FUTURE PROGRAM CONSIDERATION: RECYCLABLES COLLECTION AND PROCESSING 10 5.01 Right of First Proposal 10 ARTICLE 6 DROP BOX COLLECTION AND TRANSPORTATION 10 6.01 Scope of Contract Services and Specifications 10 ARTICLE 7 GENERAL COLLECTION PERFORMANCE OBLIGATIONS AND STANDARDS 11 7.01 Scope of Contract Services and Specifications 11 ARTICLE 8 REFUSE DISPOSAL 11 8.01 Scope of Contract Services and Specifications 11 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK ARTICLE 9 MISCELLANEOUS PERFORMANCE OBLIGATIONS 11 9.01 Compliance with Law 11 9.02 Personnel 12 9.03 Responsiveness to KIB 13 ARTICLE 10 RECORDS AND REPORTING 13 10.01 Records 13 10.02 Reporting 14 10.03 Financial Records and Reports 14 ARTICLE 11 INDEMNITIES, INSURANCE, LETTER OF CREDIT 15 11.01 Insurance 15 11.02 Contractor Indemnity, Defense and Release 18 11.03 Letter of Credit 19 11.04 Guaranty Agreement 20 11.05 Assurance of Performance 20 ARTICLE 12 CHANGE IN SCOPE OF SERVICE 20 12.01 Change in Performance Obligations 20 12.02 Proposal 21 12.03 Independent Expert 22 ARTICLE 13 CONTRACTOR SERVICE FEE, CUSTOMER SPECIAL SERVICE SURCHARGES 23 13.01 Customer Service Fee 23 13.02 Inclusiveness 24 13.03 Adjustment of Contractor Service Fee 24 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ARTICLE 14 BREACHES, DEFAULTS AND REMEDIES 30 14.01 Certain Breaches; Liquidated Damages and Specific Compensatory Damages 30 14.02 Defaults 33 14.03 Breaches and Defaults Excused 36 14.04 Remedies. 37 14.05 Additional Compensatory Damages 38 14.06 Waivers 39 14.07 Jurisdiction; Venue, Costs 39 14.08 Enforcement Costs 39 14.09 KIB Right to Perform 39 ARTICLE 15 SUSPENSION OR TERMINATION 42 15.01 KIB Right to Suspend or Terminate 42 15.02 Criminal Activity 43 ARTICLE 16 TRANSFER OF AGREEMENT 44 16.01 Transfer 44 ARTICLE 17 THE PARTIES 46 17.01 Contractor Is Independent Contractor 46 17.02 Parties in Interest 46 17.03 Binding on Successors 46 17.04 Further Assurances 46 17.05 Actions of KIB in Its Governmental Capacity 46 17.06 Contractor's Obligations Performed at Its Sole Expense 46 17.07 Parties Representatives 47 4 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 17.08 Due Diligence 47 17.09 No Use of KIB Name 47 17.10 Subcontractors 47 ARTICLE 18 AMENDMENTS 18.01 Amendments ARTICLE 21 EXECUTION OF CONTRACT 21.01 Execution in Counterparts 21.02 Authority to Execute ATTACHMENT 2.02 KIB'S REPRESENTATIONS AND WARRANTIES COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 48 48 ARTICLE 19 NOTICES, CONSENTS, APPROVALS, ETC. 49 19.01 Notices, etc. 49 19.01 Writing Requirements 49 19.03 Exercise of Options 49 ARTICLE 20 DEFINITIONS AND INTERPRETATION OF CONTRACT 20.01 Definitions 20.02 Interpretation of Contract 50 20.03 Integration 50 21.04 Governing Law 51 20.05 Severability 51 20.06 Interpretation 52 20.07 New Contract 52 50 50 52 52 52 ATTACHMENT 2.01 CONTRACTOR'S REPRESENTATIONS AND WARRANTIES. 53 54 ATTACHMENT 4 REFUSE COLLECTION AND TRANSPORTATION TO KIB LANDFILL 55 4 -3.03 Obligations Upon Termination or Expiration 55 4-4.01 Automated Refuse Collection in Carts 55 4-4.02 Collection in Dumpsters or Compactors 56 4-4.03 On -call, Monthly Bulky Items Collection 58 4-4.04 Emergency Services 58 4-4.09 Mandatory Service Notice 58 ATTACHMENT 5FUTURE PROGRAM CONSIDERATION: RECYCLABLES COLLECTION AND PR( 5 -5.01 KIB Recyclables Program Specifications 59 ATTACHMENT 6 DROP BOX COLLECTION AND TRANSPORTATION59 6 -6.01 On -call Temporary Dumpster and Roll -off Service 59 6 -6.02 Weekly Residential Roll -off Service 60 6 -6.03 Roll -Off Container at KIB Landfill 58 ATTACHMENT 7GENERAL COLLECTION PERFORMANCE OBLIGATIONS AND STANDARDS 7 -7.01 Missed Pickups and Other Complaints 61 7 -7.02 Unpermitted Waste Screening 62 7 -7.03 Contract Service Exceptions 62 7 -7.04 Transition and Customer Education 63 7 -7.05 Other Special Customer Services 63 7 -7.06 Contract Service Assets 64 7 -7.07 Customer Billing; Bill & KIB Fee Collection 64 7 -7.08 Containers 65 7 -7.09 Customer Service Subscription and Bill of Rights 66 7 -14.01 Liquidated Damages 67 ATTACHMENT 8 REFUSE DISPOSAL ATTACHMENT69 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 8 -1.01 Transportation to KIB Landfill 69 8 -1.02 Limited Disposal Defense and Indemnification 69 ATTACHMENT 13.01 CONTRACTOR SERVICE FEE SCHEDULE71 ATTACHMENT 20.01 DEFINITIONS74 APPENDIX: CONTRACTOR INFORMATION AND DOCUMENTATION 92 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK In this Agreement words have the meanings defined in Attachment 20.01 appended as the last attachment to this Agreement. "Day" means a calendar day. CONVENTIONS USED IN THIS CONTRACT "Including ", "Include" or variations thereof means "including without limitation, "including, but not limited to" and "including, at a minimum ". "Promptly" or "Prompt" means as soon as practicable, but not more than two days. "Such as" means "for example ". RECITALS: The Parties refer to the following facts, using terms defined in Attachment 20.01. MB is responsible for protection of public health and the environment in its jurisdiction. Historically, KIB has contracted for residential service in dumpsters, which has created a nuisance and appearance problem with litter. This Contract provides service to residential (and some commercial) customers in wheeled carts, as a measure to minimize nuisance and reduce litter. KIB owns its landfill and may be liable for pollution caused by materials discarded in the landfill. This Contract helps MB minimize its potential pollution liabilities through performance specifications, such as unpermitted waste screening protocols. KIB has provided customer billing and bill collection services for solid waste services. This Contract reduces KIB 's administrative cost through performance specifications that require the contractor to provide those services. KIB 's existing contract for solid waste collection services is expiring, and MB conducted the competitive procurement pursuant to which this Contract was awarded in order to secure the most comprehensive services for the best price. By entering into this Contract, MB establishes performance standards, customers' rights and program enforcement flexibility. NOW, THEREFORE, in consideration of the mutual obligations of the Parties under this Contract and the conditions under this Contract, MB and Contractor agree as follows: ARTICLE 1: EXCLUSIVE CONTRACT 1.01 Exclusive Right and Privilege to Provide Contract Services. MB grants Contractor the exclusive right and privilege together with the obligation to provide Contract Service in the Contract Service Area conditioned on Contractor being at all times ready, willing, and able to 8 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK meet each and every Performance Obligation. ARTICLE 2: REPRESENTATIONS AND WARRANTIES 2.01 Of Contractor. Contractor makes the representations and warranties in Attachment 2.01 on the date it executes this Contract. 2.02 Of MB. KIB makes the representations and warranties in Attachment 2.02 on the date it executes this Contract. ARTICLE 3: TERM OF CONTRACT 3.01 Term. a. Contract Commencement Date and expiration of Term. The Term commences on the Contract Commencement Date, March May 1, 2010 and expires at the end of 7 years after the Contract Commencement Date, unless extended. b. Collection Commencement Date. The Collection Commencement Date is July 1, 2010. c. Short -term extension. On or before 30 days prior to the expiration of the Term whether original under subsection a) or extended under subsection c), MB, in its sole discretion, may extend the Term for up to six months. d. MB options to extend Term. On or before 60 days prior to the following dates: (1) expiration of the original Term under subsection a), (2) the extended Term under subsection b), or (3) a portion of the maximum allowable extended term under this subsection, KIB, in its sole discretion, may incrementally extend the Term for up to 3 years in any combination of the following number of years (such as 1 +2, 1 +1 +1; 2 +1). 3.02 Survival of Certain Provisions. The following provisions of this Contract will survive the Term: (1) all acknowledgements, representations and warranties of the Parties in this Contract, (2) all Indemnities, (3) Contractor Payment Obligations or claims therefore, (4) all Contractor's Performance Obligations and KIB's rights with respect to Records, including giving MB a copy of Records, or allowing MB to copy, inspect and audit Records, including: • certificates of Insurance or other evidence of Insurance coverage (such as endorsements extending coverage of claims made insurance policies), and • Contract Service Asset Inventory and Contract Service Asset Documentation (for example, with respect to Refuse Carts that KIB has the right to acquire). (5) all Contractor's Performance Obligations and MB's rights with respect to Reports; including submitting final Reports, 9 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (6) providing endorsements extending coverage of claims made insurance policies, if KIB waives the claims made requirement and allows claims made insurance policies, (7) any other provision that expressly states that it survives the Termination Date (such transfer of Cart ownership to KIB), and (8) any right of either Party vested and any obligation of either Parties accrued before the Termination Date. After the Termination Date, Contractor has no other Performance Obligations or rights under this Contract. 3.03 Contractor's Obligations Upon Expiration or Termination. OBLIGATIONS IN THIS SECTION SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT. If Contractor is not awarded an agreement to continue to provide MSW Management Services substantially similar to Contract Services after the expiration or termination of this Contract, prior to and after that expiration or termination, Contractor will cooperate fully with KIB and the succeeding contractor(s), licensee(s), permittee(s) or other Person(s) providing MSW Management Services to assure a smooth, efficient, orderly, timely and effective transition of and delivery of MSW Management Services to Contractor's former Customers. 3.04 New Contract. This Contract is a new obligation between the Parties and is a novation, substitution and replacement for any contract or agreement between the Parties entered into before the Contract Commencement Date with respect to Contract Services. ARTICLE 4: REFUSE COLLECTION AND TRANSPORTATION TO MB LANDFILL 4.01 Scope of Services and Specifications. Beginning on the Contract Commencement Date (or Collection Commencement Date, if specified), Contractor will provide Contract Service and satisfy Performance Obligations in Attachment 4. ARTICLE 5: FUTURE PROGRAM CONSIDERATION: RECYCLABLES COLLECTION AND PROCESSING 5.01 Right of First Proposal. If KIB intends to implement a recycling program, it will first solicit a proposal from Contractor under Attachment 5. ARTICLE 6: DROP BOX COLLECTION AND TRANSPORTATION 6.01 Scope of Contract Services and Specifications. Beginning on the Contract Commencement Date, Contractor will provide Contract Service and satisfy Performance Obligations in Attachment 6. 1 O COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ARTICLE 7: GENERAL COLLECTION PERFORMANCE OBLIGATIONS AND STANDARDS 7.01 Scope of Contract Services and Specifications. Beginning on the Contract Commencement Date, Contractor will provide Contract Service and satisfy Performance Obligations in Attachment 7. ARTICLE 8: REFUSE DISPOSAL 8.01 Scope of Contract Services and Specifications. Beginning on the Contract Commencement Date, Contractor will provide Contract Service and satisfy Performance Obligations in Attachment 8. ARTICLE 9: MISCELLANEOUS PERFORMANCE OBLIGATIONS 9.01 Compliance with Law. a. Compliance. Contractor will comply with all Applicable Laws, including securing and maintaining all Permits. No Performance Obligation may be construed to relieve Contractor of any obligations imposed by Applicable Law. If a Permit issued by MB remains in effect after the expiration or termination of this Contract, Contractor nevertheless may not operate within KIB for collection of Solid Waste formerly collected under this Contract. THIS PROHIBITION WILL SURVIVE THE TERMINATION OF THIS CONTRACT and MB may seek specific enforcement of this prohibition under Section 14.04. Promptly upon KIB request, Contractor will give MB copies of Permits and documentation evidencing that Contractor is in compliance with its Permits. b. References. References in this Contract to particular provisions or requirements of Applicable Law may not be construed to limit Contractor's obligation to comply with all provisions of Applicable Law. Those references are intended to facilitate Contractor's satisfaction of its Performance Obligations and MB's administration and specific enforcement of this Contract. Those references may not be construed to constitute lack of Contractor obligation to comply with other provisions or requirements of Applicable Law that are not specifically referred to or cited in this Contract. If any provision of this Contract is more stringent than Applicable Law, Contractor will comply with that provision. c. Fines and penalties. Contractor is solely liable for all fines and penalties that are imposed on Contractor or due to Contractor's actions, including fines and penalties that are the result of Contractor's Violation of Applicable Law (including Permits). Contractor will not seek reimbursement from MB or any Customer for any fines or penalties. d. Contractual Obligations. Applicable Law is incorporated in this Contract by reference as if set forth fully in this Contract as contractual Performance Obligations of Contractor to COLLECTION SERVICES CONTRACT Kodiak Island Borough, AK MB. If any Applicable Law is inconsistent with this Contract, the more stringent will apply. 1. Breaches. In addition to or in lieu of prosecuting violations of the MB Code as misdemeanors, infractions, or other manner provided under the MB Code, MB may enforce Contractor's obligations under Applicable Law (including the MB Code) in the same manner as it may enforce Contractor's other contractual obligations under this Contract (including specific performance and as Breaches subject to cure under Section 14.01) whether or not noncompliance with those provisions of Applicable Law has become a Violation. Neither prosecution of Contractor for noncompliance with Applicable Law or enforcement of Applicable Law is a condition precedent to enforcing those Performance Obligations. In determining whether or not Contractor is in noncompliance with those provisions, the standard of proof applicable to breach of contract will apply. MB has no obligation to enforce any Applicable Law. 2. Violation. Violation of Applicable Law is a Default subject to contest under Section 14.02. e. KIB's Protection of Public Safety, Health, and Welfare. Contractor acknowledges that MB is authorized to make all necessary and reasonable rules and regulations regarding all aspects of MSW Management Services to protect the public's health, safety, and welfare. No provision in this Contract may be deemed to limit MB's police power to take any action that MB deems necessary or appropriate in its sole discretion to protect the public's safety, health, and welfare. f. Compliance with MB Code. Contractor must comply with the MB Code, subject to possible adjustments in Contractor Service Fee in the event of Changes in Law. Contractor warrants and represents that it is fully acquainted with the provisions of MB Code. Contractor must pay Liquidated Damages with respect to non - compliance with specified provisions of the MB Code, including failure to remedy any Violation of MB Code within five days of the date of notice of Violation, and in the event of conviction of a Violation. 9.02 Personnel. a. Identification, Appearance, Conduct. Contractor will train and require each of its personnel to: (1) present a neat, tidy and orderly appearance, (uniforms and safety vests required), (2) conduct his or her self in a courteous manner, (3) refrain from using loud or profane language, (4) perform Collection as quietly as possible. b. No Gratuities. Contractor will not permit its personnel to demand or solicit, directly or indirectly, any additional compensation or gratuity from any Customer or member of the public. c. Compliance with OSHA. Receipt of a citation or failure -to -abate notice from the State Division of Occupational Safety and Health or other Regulatory Authority is a Breach. 12 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 9.03 Responsiveness to MB. a. Phone calls. Contractor will return telephone calls from MB to the individual who made that call no later than the next MB Business Day. b. Meetings. Within one week of oral or written direction by MB, Contractor will meet with MB during MB Office Hours at the offices directed by MB. c. E- mails. Contractor will respond to all e-mails from MB within 48 hours of receipt (except on weekends and Holidays). d. Written correspondence. Contractor will respond to written correspondence from MB within one week of receipt or other time specified by MB. ARTICLE 10: RECORDS AND REPORTING Contractor acknowledges MB's right to review Records and receive reports, for reasons including: (1) enforcing Customers' rights; (2) evaluating Contractor's performance under and in compliance with this Contract; (3) exercising MB's rights to perform, or cause a third Person to perform; Contractor's Performance Obligations in certain events, such as Defaults and Uncontrollable Circumstances; and (4) determining and corroborating the amount of any Contractor Payment Obligation. 10.01 Records. a. Maintenance. Contractor will keep accurate and complete Records. b. Preservation and Retention. Unless otherwise directed by MB, Contractor will preserve and retain Records (other than Refuse Disposal Records or Delivery Data), such as Customer billing Records, for the following periods of time: (1) until at least 2 years after the Termination Date, or (2) any longer period required by Applicable Law. c. MB Inspection and Audit. 13 1. Location. (i) MB Offices. Upon 3 Service Days advance telephonic or written request by KIB, Contractor will use Reasonable Business Efforts to provide copies of Records to MB and its designees for inspection, review or audit at MB's offices. For example, Contractor might email or physically mail documents from a site outside KIB. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (ii) Contractor Office or Service office within MB. If Contractor cannot provide KIB with copies of Records within the notice period provided under subsection c.1.(i) using Reasonable Business Efforts, Contractor will make those Records available to MB or its designees for inspection, review or audit at Contractor Office (or if Contractor's Office is not located within 25 miles of MB's administrative offices, at a location within MB) during Contractor Office Hours. 2. Scope of inspection or audit: MB may do any or all of the following: (i) inspect and review Records at any time following notice under subsection c.1.(i), or (ii) audit Records once each Contract Year, including verification of any of the following: (iii) Customer Special Service Surcharges that Contractor charged to and collected from Customers, (iv) any Contract Fees, (v) Solid Waste tonnage Collected, Processed, Diverted or Disposed, (vi) Collection Customer complaint logs, and (vii) other Records that confirm compliance with Performance Obligations. Promptly upon request, Contractor will provide MB or its designees with any additional information (such as primary records supporting reports) relevant to this Contract. 10.02 Reporting. a. Annual. Contractor will submit a complete Annual Report to MB no later than 45 days after the end of the Contract Year (or at direction of MB, Calendar Year), for the preceding Contract Year (or Calendar Year). b. Additional Information. Promptly upon MB request, Contractor will prepare interim Reports more frequently than annually and incorporate additional information into Reports. 10.03 Financial Records and Reports. a. Maintenance of Records. 1. Content. Contractor will maintain in Contractor Office accurate and complete financial Records of the following: (i) Customer receipts, (ii) payments to MB (including Contractor Payment Obligations, such as any Contract Fee), (iii) costs and expenses associated with satisfying Performance Obligations, whether by Contractor or an Affiliate. Contractor may maintain financial Records associated with Goods or Services provided by an Affiliate in the office of the Affiliate but will provide MB with a copy of those Records within I4 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 10 days of KIB request. 2. Form. Contractor will maintain its financial Records on an accrual basis and in accordance with Generally Accepted Accounting Principles showing the results of Contractor's operations under this Contract separately from other operations under other contracts or in other locations, as if Contractor were an independent entity providing service only to KIB. ARTICLE 11: INDEMNITIES, INSURANCE, LETTER OF CREDIT 11.01 Insurance. a. Coverage Requirements. Without limiting its Indemnities, Contractor will secure and maintain insurance coverage meeting the requirements in this Section. MB may require Contractor to secure and maintain larger amounts or types of coverage if it compensates Contractor the Direct Costs of the additional premium for that coverage under Article 12. Contractor may use a combination of primary and excess insurance coverage to satisfy these requirements. MB may reduce insurance requirements if it determines that the reduction is in KIB's best interest. Each liability policy must provide contractual liability coverage for Contractor's Indemnities, including any necessary endorsement, schedule or other documentation. 1. General Liability Insurance. Written on ISO policy form CG 00 01 (occurrence) or its equivalent (and not CG 00 02 claims made) with limits of not less than the following: General Aggregate: $4 million Products /Completion Operations Aggregate: $4 million Personal and Advertising Injury: $1 million Each Occurrence: $2 million 2. Liability coverage for pollution conditions resulting from transported cargo. With a limit of not less than $2 million per occurrence covering loss (including cleanup costs) that the Contractor becomes legally obligated to pay as a result of claims for bodily injury, property damage, and cleanup costs (including expenses required by environmental laws or incurred by federal, state, KIB or third parties) resulting from pollution conditions caused by transported cargo (including waste). For the purpose of this subsection, "pollution conditions" includes the dispersal, discharge, release, or escape of any solid, liquid, gaseous or thermal irritant or contaminant (such as smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, medical waste, and waste materials) into or upon land, any structure on land, the atmosphere, or any watercourse or body of water (including groundwater), provided the conditions are not naturally present in the environment in the amounts or concentrations discovered. Contractor's general liability policy may be endorsed to provide for this pollution liability coverage. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 3. Automobile Liability Coverage. Insurance meeting the following requirements: (i) Written on ISO policy forms CA 00 12 or CA 00 20 (or their equivalent) with a limit of liability not less than $2 million for each accident, (ii) endorsed to delete the pollution and/or the asbestos exclusion and include pollution liability (using form CA 99 48 or its equivalent) for accidental spills and discharges while transporting and/or processing materials, and (iii) covering all Vehicles that drive on public roads. If Contractor is subject to federal regulations, Contractor also will maintain any other coverage necessary to satisfy state or federal financial responsibility requirements. 4. Workers' Compensation and Employers' Liability. Insurance providing the following: (i) Workers' compensation benefits required by Applicable Law (including the State Labor Code or by any other state labor law), and for which Contractor is responsible, and (ii) Employers' Liability coverage with limits of not less than the following: Each accident: Disease - policy limit: Disease - each employee: $1 million $1 million $1 million b. Insurer qualifications. Contractor will secure insurance provided by an insurer meeting the following qualifications: (1) is acceptable to MB, (2) is an admitted company in State, (3) has a size category of VII or larger by A.M. Best Company, Inc., and (4) has a rating of A or better by A.M. Best Company, Inc. c. Insurance Coverage Requirements for Subcontractors. Contractor will insure each Subcontractor performing Contract Services or transportation of Solid Waste by providing evidence that either: (1) Contractor is maintaining insurance required by this Section covering the activities of the Subcontractor, or (2) the Subcontractor is maintaining that insurance itself. d. Evidence of Coverage. Contractor will provide COIs, endorsements, schedules and other evidence of insurance coverage requested by and acceptable to at MB at the following times: (1) on or before the Contract Commencement Date, (2) with submission of each Annual Report, (3) promptly upon renewal of policies, and (4) within 10 days of MB's request. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK i. Certificates of Insurance. Contractor will provide certificates (or other evidence of coverage) containing at a minimum, the following information with respect to Contractor and any Subcontractor: (a) Contract name: Explicitly identifying this Contract (for example, UNDER DESCRIPTION OF OPERATIONS), and if necessary to secure contractual liability coverage as an "insured contract" or otherwise, including a schedule or endorsement that specifically identifies this Contract; (b) Types, policy numbers, policy effective / expiration dates and limits: Explicitly reference each type and corresponding limit of coverage required under this Contract, together with the following: • policy numbers, • effective / expiration dates, and • identification of each required ISO policy form or confirmation of its equivalency to ISO policy forms required under this Contract (such as "auto liability ISO form CA 00 12 "). Where this Contract does not require a specific ISO policy form, the certificate of insurance must specifically reference the required type of coverage (such as "pollution liability" under TYPE OF INSURANCE — OTHER) together with a summary description of its coverage (such as "pollution conditions caused by transported cargo" under SPECIAL PROVISIONS); (c) 30 days' cancellation notice: Containing the express condition that MB must be given written notice by mail at least 30 days in advance of cancellation for all policies evidenced on the certificate of insurance. Endorsements cannot contain mere "best effort" modifiers or relieve the insurer from its responsibility to give that notice and the CANCELLATION information on the certificate of insurance must delete language such as "failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representatives ". (d) Deductibles and self - insured retentions: Identifying any deductible and self - insured retention. Upon MB request, Contractor will reduce any self - insured retention as it applies to MB or provide a letter of credit, certificate of deposit or other financial assurance acceptable to MB guaranteeing payment of all retained losses and related costs and expenses related to investigations, claims administrations, and legal defense. The letter of credit or certificate of deposit must be provided by a bank satisfactory to MB; and (e) Claims made: If MB waives the prohibition on procuring claims made policies and insurance coverage is written on a claims -made form, then evidence that the "retro date" is before the Contract Commencement Date. Contractor must maintain that coverage for at least 5 years after the Termination Date (or longer as required under this Contract). Promptly upon MB request, Contractor must provide MB with evidence of that coverage. THIS PROVISION SURVIVES THE TERMINATION OF THIS CONTRACT. 17 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK ii. Endorsements: Contractor must provide copies of the following endorsements or other documentation with respect to Contractor and any Subcontractor satisfactory to MB: (a) additional insured endorsement to each liability policy, explicitly adding MB and its "officers, agents, and employees" as additional insured; (b) waiver of subrogation; (c) insurance is primary and not contributing with any other insurance or self - insurance programs maintained by KIB and its officers and employees; (d) excluding any "insured v. insured" clause in a liability policy with respect to MB as an additional insured; and (e) providing dedicated limits under a liability policy in favor of MB as an additional insured. iii. Schedules. Contractor must provide schedules or other evidence that liability policies of Contractor and any Subcontractor provide contractual liability coverage for Indemnities, such as listing this Contract as an "insured contract ". iv. Signature verification. At MB's request, Contractor must provide documentation verifying that the individual signing or countersigning the certificates, policies, endorsements, or other evidence of coverage of Contractor and any Subcontractor is authorized to do so and identifies his or her company affiliation and title. MB may require complete, certified copies of Contractor's insurance policies at any time. e. Notice of claims. If any Person makes a claim against Contractor or any Subcontractor exceeding the amount of any deductibles or self - insured retentions, Contractor will promptly notify MB of the claim. f. Contractor accounting. Contractor will institute a comprehensive accounting system satisfactory to MB to monitor all insurance requirements under this Contract, including those of each of its Subcontractors. g. Contractor compliance. Contractor will comply with all requirements of its insurance policies and insurers. 11.02 Contractor Indemnity, Defense and Release. a. General. To the extent allowable under Applicable Law, Contractor will (1) Indemnify and hold harmless, (2) defend with counsel approved by MB, and (3) release MB and MB's Related Parties from and against all Liabilities and Losses paid, incurred or suffered by, or asserted against, MB or KIB's Related Parties arising out of or in connection with this Contract, including in connection with any alleged failure of MB or MB's Related Parties to enforce provisions of this Contract or of Applicable Law. I8 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK b. Indemnity During Term Only. Contractor's Indemnity is limited to Liabilities and Losses resulting from Contract Services provided by Contractor from the Contract Commencement Date through the Termination Date. However, CONTRACTOR'S OBLIGATIONS UNDER THIS SECTION WILL SURVIVE THE EXPIRATION OR TERMINATION OF THIS CONTRACT. c. Reimbursement of Enforcement Costs. If Contractor fails to pay any Indemnities and that failure results in any costs to MB, within 15 days of MB request, Contractor will pay KIB's Reimbursement Costs. 11.03 Letter of Credit. Contractor will provide for the issuance of an irrevocable standby letter of credit (the "Letter of Credit ") for the benefit of MB in form satisfactory to KIB by a financial institution (the "Bank ") having at least one of the following minimum ratings: (1) Moody's A2 or better LT Issuer Credit and B or better for Bank Financial Strength, (2) Standard and Poor's: A or better for LT Issuer Credit, (3) Bauer Financial: 4 Stars or better, (4) TheStreet.com Ratings: B or better: Contractor will provide for a letter of credit in the following amount (the "Stated Amount "): (i) During the first Contract Year (or balance of the first Contract Year if less than 12 months), the amount of gross Contractor Service Fees projected by MB for 4 months, (ii) During the second Contract Year, an amount equal to the following: (a) 110% of the average amount of gross Contractor Service Fees that Contractor received during any 4 months the first Contract Year, or (b) if the first Contract Year was less than 4 months, 110% of KIB's projection of the amount that Contractor would have received during 4 full months. (iii) During the third and following Contract Year(s), an amount equal to 110% of gross Contractor Service Fees that Contractor received during the prior Contract Year. (6) MB may draw on the Letter of Credit, in one or more drawings, in any of the following events as evidenced to the satisfaction of MB: (i) a Default, or (ii) Contractor is unable to regularly pay its bills as they become due, or (iii) Contractor fails to timely pay any Solid Waste Management Facility, fuel supplier or employee; or (iv) Contractor fails to pay an Insurance deductible or self - insured retention. (7) The Letter of Credit may expire no earlier than the date on which the Bank receives a certificate from MB stating the following: (i) this Contract has expired, or (ii) this Contract has been terminated for a period of 180 days or other preference period provided under Applicable Law with respect to bankruptcy or insolvency, or (iii) Contractor has substituted an alternative letter of credit or other security document acceptable to KIB in MB's sole discretion, and (iv) Contractor does not owe MB any money. I �) COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK THIS SECTION WILL SURVIVE THE TERMINATION OF THIS CONTRACT. The form of the Letter of Credit, including the procedures and place of demand for payment and drawing certificate attached to the Letter of Credit, must be satisfactory to KIB. The Letter of Credit must be transferable to any successor or assign MB. 11.04 Guaranty Agreement. Any Person that provided the basis of KIB's evaluation of the financial strength and creditworthiness of Contract in Contractor's proposal to KIB with respect to this Contract (or other Person identified by KIB), must be a legal, valid and binding Guaranty by that Affiliate as Guarantor, satisfactory to KIB. 11.05 Assurance of Performance. In its sole discretion and in addition to all other remedies it may have, MB may demand from Contractor reasonable assurances of full satisfaction of Performance Obligations by a specified date, in any or all of the following events: (1) Labor unrest: Contractor is the subject of any labor unrest (including work stoppage or slowdown, sick -out, picketing, lock -out or other concerted job action) in excess of 6 days; (2) unable to pay bills: Contractor appears in the judgment of MB to be unable to regularly pay its bills as they become due, including failure to time pay the following: (i) with respect to a Contractor, a tipping fee at any Solid Waste Management Facility, (ii) any Insurance deductibles or self insured retention, (iii) any employee's wages, and (iv) non - payment of any other bill for over 60 days; or (3) monetary judgments: Contractor is the subject of fines, penalties, or civil or criminal judgment or order entered by a Regulatory Authority, which judgment is in excess of the past 3 months' Contractor Service Fees or requires estimated expenditure by Contractor in excess of those 3 months' Contractor Service Fees. ARTICLE 12: CHANGE IN SCOPE OF SERVICE 12.01 Change in Performance Obligations. a. At MB Direction. MB may direct Contractor to implement a change of Performance Obligations in the Contract Service Area following: (1) request for, submission of and review of Contractor's proposal under Section 12.02a -c, and (2) agreement of the Parties or determination of the Independent Expert under Section 12.02d. Contractor will submit its proposal within 10 MB Business Days of receiving KIB's request for proposal (or a longer period that MB may designate in light of the complexity or magnitude of the directed change). b. Upon Contractor Proposal. Contractor may propose to MB a change in the scope of Contract Services under Section 12.02, such as the following: (1) new developments in collection technologies that would improve Contract Service efficiency and reduce the Contractor Service Fee, pollution or environmental impact; (2) a program that would increase Diversion; and (3) changes in operations necessitated by a Change in Law. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 12.02 Proposal. a. Contents. In its proposal Contractor must describe its detailed plan for implementing the requested or proposed change, including the following: (1) a task list and time -line implementation schedule, (2) Goods or Services (including any Subcontractor) necessary to implement the change, and (3) any change in Contractor Service Fee and cost substantiation therefore, including Contractor's changes in Direct Costs (taking into account both incremental Direct Costs and savings offsets) such as: (i) modifying Vehicle(s); (ii) adding Receptacle(s), Vehicle(s) or routes; (iii) shortening or extending route time; (iv) laying off or supplementing labor; and (v) increasing transportation distance or time to a Solid Waste Management Facility. KIB may withdraw the request for proposal at any time, for any reason, including receipt of a proposal from Contractor unsatisfactory to KIB. Contractor will include documentation supporting its proposal satisfactory to KIB. b. Offer. Contractor's proposal will be deemed Contractor's offer to KIB to implement the directed or proposed change. Contractor's proposal will remain binding for at least 30 days from the date submitted to KIB. c. Review. 2I (1) Response /Comments. Within 20 MB Business Days of receiving Contractor's proposal, MB may review, approve, or disapprove the proposal and comment on it. If MB does not respond within that time, its approval will be deemed denied. If Contractor's proposal includes a request for change in the Contractor Service Fee that must be approved by the Assembly, MB may review, approve or disapprove the proposal within 45 days. (2) Acceptance of Comments. Contractor will accept or reject any comments within 15 MB Business Days of receiving them. If Contractor accepts the comments, MB will prepare amendments to this Contract that will implement the proposal, satisfactory to Contractor. (3) Resection of Comments / Nesotiations. If Contractor rejects MB's comments, the Parties will negotiate in good faith for a period of at least 15 MB Business Days following Contractor's receipt of MB comments. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK d. Failure to agree. 12.03 Independent Expert a. Selection (1) KIB- directed change. If the Parties cannot reach agreement on a proposal directed by MB by the end of those 15 KIB Business Days, MB may take either of the following actions: (i) implement the change itself or through another Person, or (ii) request binding dispute resolution by the Independent Expert. (2) Contractor - initiated proposal ... Changes in Law. If the Parties cannot reach agreement on a proposal initiated by Contractor by the end of those 15 MB Business Days of negotiation, the proposal is deemed rejected and this Contract will not be amended except that if Parties cannot reach agreement on a proposal initiated by Contractor due to a Change in Law, Contractor may request binding dispute resolution by the Independent Expert under Section 12.03d. (1) Exchange of lists. Following the Contract Commencement Date, Parties will expeditiously select an Independent Expert to keep on retainer in the event the Parties wish to settle disagreement over Contractor's proposal described in Section 12.02, in the selection manner described in this subsection a.(1). If the Person selected as Independent Expert resigns or can no longer serve in capacity as Independent Expert (for example, if he or she subsequently works for either Party, creating conflicts), within 5 days of either Party's request for dispute resolution, Contractor and MB will to the following: (i) prepare 2 lists (one each) of 5 independent Persons having experience in MSW Management Services as applicable in the Parties' dispute (such as automated collection in carts), in numerical order with the first preference at the top, and (ii) exchange and compare lists. The Person having the lowest total rank order position on the 2 lists will be the Independent Expert. In case of a tie in scores, the Person having the smallest difference between the rankings of the 2 parties will be selected; other ties will be determined by a coin toss. If no Person appears on both lists, Parties will repeat this procedure within the next 5 days. (2) Selection by experts. If selection is not completed after the exchange of 2 lists or 10 days, whichever comes first, then each Party will promptly select one expert having experience described above and within 5 days of selection, the 2 experts will together select an Independent Expert. b. Costs. Parties will share the Independent Expert's costs and fees equally. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK c. Communications with Independent Expert. Neither Party will communicate orally with the Independent Expert unless the other Party is privy thereto. Neither Party will communicate in writing with the Independent Expert unless it simultaneously sends copies of that communication to the other Party. d. Determination Protocol (1) In addition to KIB's or Contractor's request for binding dispute resolution under Section 12.O1d., either Party may request non - binding dispute resolution on any matter relating to Contract Services or, upon agreement of the other Party, binding dispute resolution. (2) The Party requesting dispute resolution will give the other Party and the Independent Expert a description of the disagreement and that Party's position thereon. (3) Within 10 days, the other Party may give the Party seeking dispute resolution and the Independent Expert a description of its position. (4) The Independent Expert may make one request for additional information and documentation before the later of the following times: (i) 10 days after receiving the request for dispute resolution, or (ii) After receiving both Parties' description of their respective positions. (5) Promptly upon request by the Independent Expert, either or both Parties will provide the Independent Expert with additional information and documentation and simultaneously provide the other Party with copies thereof. (6) Within 25 days of receiving a request for dispute resolution, the Independent Expert will make its determination based on the submissions of the Parties, the provisions of this Contract, its experience with similar services and disagreements, and other factual determinations it may make regarding the Parties' disagreement over the proposal. (7) The determination is binding on the Parties, unless the Parties agree otherwise. e. Exercise of remedies. Pending the Independent Expert's determination, the Parties may exercise any remedies they have under this Contract or Applicable Law. ARTICLE 13: CONTRACTOR SERVICE FEE, CUSTOMER SPECIAL SERVICE SURCHARGES 13.01 Contractor Service Fee. b. Amounts paid by MB for Senior Discount. On each July 1 (or other day designated 23 a. Amounts paid by Customers for subscribed Service. Contractor may charge Contractor Service Fees to Customers as compensation for providing Contract Services in compliance with all Performance Obligations. The Contractor Service Fee will not change except under Section 13.03. The Tonnage Adjustment Amount will be added to or subtracted from the Contractor Service Fee under Section 13 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 13.02 Inclusiveness. The Contractor Service Fee includes all Contractor's direct costs, indirect costs, plus profit or return of investment for providing Contract Services, including the following: (1) labor (including wages and fringe benefits), including drivers, Customer service personnel, supervisors, and administrators, (2) acquisition, repair and maintenance of Contract Service Assets (including buildings and grounds, and Vehicles), (3) tools and supplies, (4) fuel and utilities, (5) Insurance premiums and fees for the Letter of Credit or any further assurance of performance, (6) taxes, (7) securing and maintaining Permits and complying with Applicable Law, (8) fines and penalties for violation of Permits or Applicable Law, (9) handling Unpermitted Waste discovered in Solid Waste, including disposal thereof as required by Applicable Law, (10) negligence or misconduct, (11) fees imposed by Regulatory Agencies, including any Contract Fee, (12) fees charged by Solid Waste Management Facilities (such as tipping fees at KIB Landfill), and (13) any other cost of providing Contract Services not explicitly compensated by surcharge to Customer or charge to KIB. by KIB but no more than annually, such as quarterly) KIB will pay Contractor the aggregate amount of Senior Discounts that Contractor gave Customers during the period beginning April 1 of the prior year and ending March 31 of that year (or period commensurate with another payment date designated by KIB). Contractor Service Fee is not adjusted for changes in these costs, except under Section 13.03. Reference in this Contract to providing Contract Services "without surcharge" or similar language does not infer that absence those words, "without surcharge ", elsewhere in this Contract, means that Contractor is entitled to either of the following: (a) compensation in addition to the Contractor Service Fee listed on the Contractor Service Fee Schedule; or (b) reimbursement of Direct Costs or Contractor's Reimbursement Costs. 13.03 Adjustment of Contractor Service Fee. a. Adjustment events and timing. The Contractor Service Fee will be adjusted at the following times: (i) upon Contractor's request submitted to MB at least 60 days in advance of implementation, or (ii) upon direction of MB, in its sole discretion. 24 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (1) Annual Adiustment. On July 1 in the second full Calendar Year of the Term and each following July 1, the Contractor Service Fee will be adjusted to equal the following: (01) the Contractor Service Fee in effect during the prior Contract Year (or portion of that Contract Year), plus or minus (02) the Weighted Adjustment Percentage times that Contractor Service Fee. Between April 1 and April 15 of each Contract Year, Contractor will prepare a statement setting forth Contractor's detailed calculation of Contractor's requested annual adjustment in Contractor Service Fee in the form of the following examples or other format prescribed by KIB. Contractor's statement is for convenience of KIB, but is not binding on KIB. MB may make corrections or adjustments to that statement. Subsection d contains a sample adjustment calculation. (i) Rate Cost Component. "Rate Cost Component" means the sum of the following five portions of the Contractor Service Fee: A. Collection & Administrative Costs: Annual changes in the CPI. The operational component identified by the Contractor for each level of service will be adjusted by 75% of the CPI percent change, if any, in the CPI during the period commencing April 1 of the previous year and ending March 31 of the current year, no greater than 5 %, as confirmed by MB. "CPI" means the consumer price index (CPI -U) for Anchorage, Series ID 1982 -84 =100, published by the U.S. Department of Labor / Bureau of Labor Statistics (initial release). B. Fuel Component: Annual changes in the PPI. The fuel component identified by the Contractor for each level of service will be adjusted by the 75% of the change, if any, in the PPI during the period commencing April 1 of the previous year and ending March 31 of the current year, as confirmed by KIB. "PPI" means annual Producer Price Index Series WPU057303 for No. 2 diesel fuel, not seasonally adjusted, as published by the United States Department of Labor, Bureau of Labor Statistics as of March 31 of each year. C. Landfill Disposal Component: Change in disposal fee. The disposal cost identified by the Contractor for each level of service will be adjusted by 100% of the change, if any, in disposal fees charged Contractor at MB Landfill. D. Fixed Cost Component: No Change over the initial contract. The fixed costs identified by the Contractor for each level of service will not be COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Cart Cost Components Adjustment 32 gal 64 gal 96 gal Collection & Admin Costs 1 CPI $8.91 $8.91 $8.91 Fuel 2 PPI $2.17 $2.17 $2.17 Cart rental 3 Fixed $4.34 $4.34 $4.34 Depreciation / Lease Cost 3 Fixed $1.57 $1.57 $1.57 Disposal Cost (Pass Through) 4 Actual $9.74 $14.94 $19.16 Profit 5 % of Costs $2.16 $2.16 $2.16 Total Cart Collection Rate Sum of Above $28.90 $34.09 $38.31 The following table details the rate components identified by the Contractor of each for the proposed levels of service for cart collection: 2. Adjustment for changes in operations (such as changes in Performance Obligations due to Changes in Law). As soon as possible following agreement of the Parties under Article 12, the Contractor Service Fee will be adjusted for a change in Contractor's Direct Costs of providing Contract Services due to changes in Performance Obligations. To the extent permitted by Applicable Law, an adjustment will reflect Contractor's costs from the date incurred. The Contractor Service Fee will not otherwise be adjusted, including for actual changes in the price of fuel. b. Rounding. (2) Dollars. Final adjustment in Contractor Service Fee must be rounded to nearest penny. c. Preconditions to adjustment. The Contactor Service Fee will not be adjusted upwards if either of the following has occurred and remains uncured: (1) Breach, or (2) Default. 26 adjusted and remain constant over the term of the initial contract. These costs include, but are not limited to depreciation, lease, cart and container rent. E. Operating Margin: No Change over the initial contract. The percentage of operating margin identified by the Contractor for each level of service will not be adjusted and remain constant over the term of the initial contract. (1) Calculations. Interim calculations less than 0.5 must be rounded down and 0.5 or greater, up. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Tipping fee charges on Contract Rate Component Adjustment Method Base Year Costs Rate Adjustments Rate Year 2 Costs Cost Components Percent change 3.4% 75% 1.65% Collection & Admin Costs CPI $8.91 $0.15 $9.06 Fuel Fuel PPI $2.17 $0.28 $2.45 Cart Rental No Inflators $4.34 $- 0 $4.34 Depreciation / Lease Cost No Inflators $1.57 $- 0 $1.57 Disposal Cost (Pass Through) Actual $9.74 $0.33 $10.07 Total Rate Components $26.74 $0.76 $27.50 Margin (7.5 %) No Inflators $2.16 $0.07 $2.23 Rate (Total Rate Components + Margin) $28.90 $0.83 $29.73 Tipping fee charges on Contract $150.00 Commencement Date or last prior adjustment date April 1, 2008 - March 31, 2009 Tipping fee charges on adjustment date $5.00 Percent change 3.4% Calculation of % change in CPI (12 -month average, not month -to- month) April 1, 2007 - March 31, 2008 189.5 April 1, 2008 - March 31, 2009 191.7 Percent Change 2.2% (not more than 5 %) Portion of % change 75% 1.65% Calculation of change in PPI April 1, 2007 - March 31, 2008 262.6 (12 -month average, not month -to- month) April 1, 2008 - March 31, 2009 285.6 Percent Change 23.0% Portion of % change 75% 17.25% d. Sample calculations of annual adjustments in Contractor Service Fee. 1. Annual adjustment of OPERATIONS PORTION due to Chance in CPI. 2. Annual adjustment of FUEL PORTION Due to Chance in PPI. 3. Any changes in Tipping Fees. ,7 4. Application of the Changes to the Rate Cost Components. 5. Adjusted Contractor Service Fee. The sum of the Rate Adjustments from the above table will be added to the Rate Cost Components to calculate the new collection rates. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 13.03B Tonnage Adjustment Amount. a. Adjustment events and timing. The Tonnage Adjustment Amount will be adjusted at the following times: (i) upon Contractor's request submitted to KIB at least 60 days in advance of implementation, or (ii) upon direction of KIB, in its sole discretion. 28 (1) Annual Adjustment. On July 1 in the second full Calendar Year of the Term and each following July 1, the Tonnage Adjustment Amount for the prior Contract Year (or portion of Contract Year) will be replaced by the Tonnage Adjustment Amount for the next Contract Year, equal to either of the following: (01) Excess Tonnage: the number of Tons of Solid Waste that Contractor delivered to the KIB Landfill during the period from the prior April 1 to March 31 (or other annual period directed by KIB) in excess of Base Tons, multiplied by the rate (or rates) per Ton that Contractor paid MB for disposing of that Solid Waste (or portions of that Solid Waste) in the KIB Landfill, or (02) Tonnage Shortage: if Contractor delivered less than Base Tons of Solid Waste to the MB Landfill during the period from the prior April 1 to March 31, (or other annual period directed by KIB) the difference between the Base Tons and the Tons actually delivered multiplied by the rate per ton that MB charges for disposal of Solid Waste at the MB Landfill at the time of computation, divided by (03) Credit / debit for past year: the total number of residential customers in MB (including in the City of Kodiak) as of March 31 (or other date corresponding to the end of the annual period directed by MB (the " Past Reimbursement Amount" plus (04) Credit / debit for next Contract Year: the same as the Reimbursement Amount (defined as "Future Adjustment Amount") . This equals the Tonnage Adjustment Amount paid by each residential Customer (not each Receptacle) for the next Contract Year, in which the Base Amount is readjusted to equal the actual Disposed Tonnage of the prior Year. "Base Tons" means the following: 1. Assumed Tons: 4,004 for the first year, April 1, 2010 to March 31, 2011, and 2. Actual Tons: the actual number of Tons of Refuse that Contractor Collects from Residential Customers' Receptacles (Carts, Dumpsters or Roll -offs) during each preceding year April 1, 2011 to March 31, 2012 and each following year. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Computations Excess Tonnage Shortfall Tonnage (1) Base Tons: i. assumed 4,004 in first year, ii. replaced by actual in each following year Excess Tonnage (over 4,004 Tons/Year) Shortfall Tonnage (less than 4,004 Tons/Year) (2) actual Disposed Tons 5,004 3,004 (3) Disposed Tons — Base Tons + 1,000 (1,000) (4) MULTIPLIED BY: Tipping Fee/Ton $150X1000=$150,000 $150X(1000)= ($150,000) (5) DIVIDED BY: Total # Residential Customers in KIB (including City Carts, Residential Dumpsters and Roll -offs) 2,884 2,884 (6) ANNUAL increase / decrease -per Customer (Past Reimbursement Amount) +$52.01 ($52.01) (7) MONTHLY increase / decrease - per Customer (item 6 divided by 12 months - (Past Reimbursement Amount ) +$4.33 ($4.33) (8) Annual increase / decrease per Customer (Future Adjustment Amount) — same as item 7) +$4.33 ($4.33) Between April 1 and April 15 of each Contract Year, Contractor will prepare a statement setting forth Contractor's detailed calculation of Contractor's requested annual adjustment in Tonnage Adjustment Amount in the form of the following examples or other format prescribed by KIB. Contractor's statement is for convenience of KIB, but is not binding on KIB. KIB may make corrections or adjustments to that statement. Subsection d contains a sample adjustment calculation. b. Rounding. 29 (1) Calculations. Interim calculations less than 0.5 must be rounded down and 0.5 or greater, up. (2) Dollars. Final adjustment in Contractor Service Fee must be rounded to nearest penny. c. Preconditions to adjustment. The Contactor Service Fee will not be adjusted upwards if either of the following has occurred and remains uncured: (1) Breach, or (2) Default. d. Sample calculations of annual adjustments in Adjusted Tonnage Amount. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (9) monthly Tonnage Adjustment Amount $4.33 + $4.33 =$8.66 ($4.33) — ($4.33)= ($8.66) (10) total adjusted monthly Contractor Service Fee: (64 gallon cart @ $34.09 /month +/ $8.33 monthly Tonnage Adjustment Fee) $42.75 $25.43 ARTICLE 14: BREACHES, DEFAULTS AND REMEDIES. KIB may enforce this Contract and exercise its remedies under this Contract in its sole discretion. 14.01 Certain Breaches; Liquidated Damages and Specific Compensatory Damages. a. Notice. If KIB determines that Contractor is in Breach, KIB may assess Compensatory Damages or Liquidated Damages after giving Notice to Contractor identifying and describing the Breach. Contractor will pay those Damages within 20 days of receiving that Notice. b. Dispute. Contractor may dispute the assessment of Compensatory Damages or Liquidated Damages by Notice to KIB within 20 days of receiving the Notice of assessment, but will pay assessed Compensatory Damages or Liquidated Damages pending resolution of its dispute. In that Notice of dispute, Contractor must describe the basis for its dispute and include relevant documentation. The chief administrator of MB or his or her designee will review the Notice of dispute and make a determination as soon as practicable. His or her determination will be final. If he or she determines that MB should not have assessed all or a portion of the Compensatory Damages or Liquidated Damages, KIB will return all or a portion of the Compensatory Damages or Liquidated Damages to Contractor. Contractor acknowledges that Compensatory Damages and Liquidated Damages do not constitute fines and penalties imposed by MB as a governmental or regulatory entity, but as a contracting party. c. Liquidated Damages: Acknowledgement, Agreement and Confirmation. The Parties make the following acknowledgments: (1) MB incurred considerable time and expense negotiating this Contract to secure an improved level of collection service quality, increased Diversion and increased Customer satisfaction. Therefore consistent and reliable Contract Services are of utmost importance to MB and Customers. (2) In awarding this Contract to Contractor, MB considered and relied on Contractor's municipal references, experience, qualifications, and reputation as to service quality, and Contractor's Breach represents a loss of bargain to MB. (3) Quantified standards of performance are necessary and appropriate to ensure consistent and reliable Contract Service, and if Contractor fails to meet Performance Obligations, MB will suffer damages in subjective ways and in 30 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Therefore, the Parties agree that Liquidated Damages represent a reasonable estimate of the amount of damages, considering all of the circumstances existing on the Contract Commencement Date, including the relationship of the sums to the range of harm to MB that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient. In signing this Contract, each Party specifically confirms the accuracy of the acknowledgements and agreements made in this Section and the fact that each Party had ample opportunity to consult with legal counsel and obtain an explanation of this liquidated damage provision at the time that this Contract was made. KODIAK ISLAND BOROUGH, ALASKA PACIFIC ENVIRONMENTAL SERVICE, LLC ALASKA, a political subdivision By: Name: Rick L. Gifford Title: Manager Dated: Attest: (5) varying degrees of intensity that are incapable of measurement in precise monetary terms, including: (i) Customers' inconvenience; (ii) anxiety, frustration and potential political pressure; (iii)criticism and complaint by Customers; (iv)loss of MB Governing Body members' and staff time; and (v) deprivation of the benefits of this Contract and loss of bargain. It is and will be impracticable and extremely difficult to ascertain and determine the value of those damages. (4) In the event of Breach or Default, urgency of protecting public health and safety may necessitate that MB enter into emergency or shorter arrangements for services without competitive procurement at prices substantial greater than under this Contract, and the monetary loss resulting there from is impossible to precisely quantify. Termination of this Contract for Default and other remedies provided in this Contract are, at best, a means of future correction and not remedies that make MB whole for past Breaches. By Nova M. Javier, CMC Borough Clerk 3 By: Name: Jeff Riley Title: Chief Operation Officer Dated: COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK SECTION BREACH LIQUIDATED DAMAGE 9.03 failure to timely respond to MB call in emergency $500 for each 6 hours of failure 9.03 failure to return KIB calls $500 for each breach over 1 time per month 9.03 failure to meet with MB $500 for each breach over 1 time per Contract Year 9.03 failure to remedy any Violation of MB Code within 5 days notice of Violation $250 per instance 9.03 conviction of Violation under MB Code $2,500 per instance 10.02 failure to submit complete Report to MB $500 per failure / per day until complete report delivered Records, Reports, proposals, Etc. failure to timely submit any documentation to MB in form and at time required $100 per failure / per document / per day 13.01 Contractor charging any Customer more than the applicable Customer Special Service Surcharge $250 per Contractor / each Customer failure to secure satisfaction of MB, obtain any consent or approval of MB, or to give Notice to MB when required $250 per failure / per day until approval obtained or Contractor ceases action, retracts misinformation or otherwise remedies failure to satisfaction of MB In the following table, Sections listed under SECTION column describe Performance Obligations (including timeliness) to which the liquidated damages apply. Language listed under BREACH column summarizes those obligations for ease of Contract administration and enforcement, but breach is determined by (non)compliance with the referenced Section of this Contract or the MB Code. Liquidated Damages in the following chart apply to each Breach, each day: the first occurrence and continuation on successive days. For example, failure to correct a missed pickup would result in liquidated damages on the day of the scheduled pickup and each following day until corrected. COLLECTION SERVICES CONTRACT( Kodiak Island Borough, AK d. Compensatory Damages. If Contractor fails to deliver any type of Solid Waste to a facility approved by MB (such as a recyclables processing facility in connection with any recyclables collection program that may be established), then in addition to assessing Liquidated Damages, MB may in its sole discretion assess the following Compensatory Damages, and Contractor will pay KIB the following Compensatory Damages: (1) MB's Reimbursement Costs to monitor Contractor's compliance with delivery Performance Obligations, including individuals following Collection Vehicles on Collection routes; and (2) KIB's Reimbursement Cost of enforcing or securing specific performance of Contractor's delivery obligation. 14.02 Defaults. Each act or omission described in this Section constitutes a material Breach ( "Default ") under this Contract: a. Contract Service Defaults: (1) Uncured Breach: Contractor Breaches this Contract; and (i) MB Notifies the Contractor that an identified Breach has occurred; and (ii) Contractor does not correct that Breach within 20 days of receiving KIB 's Notice. If Contractor believes that it cannot cure the Breach within 20 days, Contractor A. may Notify MB within 5 days of receiving MB's Notice, explaining why Contractor believes it needs additional time to effectuate a cure and proposing schedule for cure, and B. will diligently proceed to cure the breach within that schedule and report to KIB on schedule implementation at the times or frequencies requested by KIB. KIB, in its sole discretion, may take any of the following acts: C. accept Contractor's proposed schedule of cure, or D. make a written demand that Contractor cure the Breach within an alternative time period set by MB, or E. exercise any remedies under this Contract, including terminating this Contract at the end of the 20 day period. (2) Repeated Breach. Contractor repeatedly or habitually Breaches this Contract, as determined in the sole discretion of MB. (3) Contract Service failures. Contractor fails to Collect the following percent or number of pickups (regularly scheduled or by appointment) at Customer's Set - Out Sites (subject to Contract Service Exceptions): (i) 100 or more for more than 7 consecutive days, (ii) 500 or more during a 12 -month period; MB does not have to wait until the end of the 12 -month period to declare this Default, or COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 34 (iii) at least 99.5% of pickups scheduled for a day, for more than 10 cumulative days over the Term. (4) Failure to comply with Applicable Law. (i) Violation A. Material. Contractor does not cure any material Violation of Applicable Law to the satisfaction of KIB or applicable Regulatory Authority within 30 days of the notice, assessment, or determination of that Violation of Applicable Law; or B. Repeated. In KIB's judgment, Contractor repeatedly receives a notice, assessment or determination of the same or different Violation. (ii) Contests. If Contractor is entitled to contest and in good faith does contest a notice, assessment, or determination of Violation of Applicable Law, no Default will be deemed to have occurred until a final decision adverse to Contractor is entered. (5) Criminal activity. Contractor fails to effectuate cures or to timely terminate and/or replace any Contract Manager under Section 15.02. (6) Failure to timely pay Contractor Payment Obligation. Contractor fails to pay any Contractor Payment Obligation within 15 days of the date it is due and payable. (7) Charging more than amounts listed in Contractor Service Fee Schedule. Contractor charges any Customer more than the scheduled Customer Special Service Surcharge listed in the Service Schedule and does not reimburse the excess within 30 days of Contractor's discovery thereof, KIB notice or Customer request. (8) Failure to allow MB to perform Contract Services. Contractor fails to timely allow KIB to exercise any of KIB's rights in connection with performing Contract Services under Section 14.09. b. Performance Assurance Defaults. (1) Failure to provide Performance Assurance. Contractor fails to provide any Performance Assurance. (2) Seizure, attachment. Any Contract Service Asset is seized, attached or levied upon (other than a pre judgment attachment) so as to substantially impair Contractor's ability to timely and fully perform Contract Services, and which cannot be released, bonded or otherwise lifted within 48 hours, excepting weekends and Holidays. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (3) Insolvency, bankruptcy, liquidation. (i) Contractor: A. files a voluntary claim for debt relief under any applicable bankruptcy, insolvency, debtor relief, or other similar law now or hereafter in effect, unless Contractor retains full control of Contract Service Assets throughout the pendency of that claim, or B. consents to the appointment of or taking of possession by a receiver, liquidator, assignee (other than as a part of a transfer of Contract Service Assets no longer used to provide Contract Services or backup Contract Services), trustee (other than as security of an obligation under a deed of trust), custodian, sequestration, administrator (or similar official) of Contractor for any part of Contractor's operating assets or any substantial part of Contractor's property, or C. makes any general assignment for the benefit of Contractor's creditors, or D. fails generally to pay Contractor's debts as they become due, or E. takes any action in furtherance of any of the foregoing. (ii) A. A court having jurisdiction enters a decree or order for relief in respect of this Contract, in any involuntary case brought under any bankruptcy, insolvency, debtor relief, or similar law now or hereafter in effect, or B. Contractor consents to or fails to oppose any similar proceeding, or C. any court having jurisdiction enters a decree or order appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator, administrator (or similar official) of Contractor or for any part of Contractor's operating equipment or assets, or orders the winding up or liquidation of the affairs of Contractor. (4) Default under Guaranty. The occurrence of any default under the Guaranty. (5) Transfer. Contractor makes a Transfer without MB consent required by Section 16.01. (6) Subcontract. Contractor engages a Subcontractor or enters into a Subcontract without MB consent under Section 17.10, and does not terminate that Subcontract within 15 KIB Business Days of MB Notice. c. False Representations; Breach of Warranties. (1) Under this Contract. (i) Contractor makes a representation or certification in or under this Contract, including Attachment 2.01, which Contractor knows, or in the course of diligently conducting business and providing Contract Services should have known, is untrue on the date Contractor made it. COLLECTION SERVICES CONTRACT ( Kodiak Island Borough, AK (ii) Contractor breaches a warranty under this Contract. (2) As inducement to enter into this Contract. Contractor makes a representation or fails to make a disclosure, whether within this Contract or otherwise, to MB in connection with or as a material inducement to entering into this Contract or any future amendment to this Contract, which representation or failed disclosure is false or misleading in any material respect when made. 14.03 Breaches and Defaults Excused. a. Uncontrollable Circumstance/ prevention and mitigation. To the extent that any Default is due to an Uncontrollable Circumstance, Contractor will not be deemed in Default for Breach of its Performance Obligations under the following Sections: (1) Section 14.02a1 and 2 (Uncured Breach; Repeated Breach), except to the extent that a Breach constitutes a Default otherwise itemized in Section 14.02a3 -8 or b, or; (2) Section 14.02a3 (Failure to Collect). if Contractor exerted the following best efforts: (i) to prevent the Breach, and; (ii to mitigate the effects of the Uncontrollable Circumstance. For example, if Contractor Breaches the Contract by failing to provide Insurance, which Breach constitutes a specific Default under Section 14.02b(1), that Breach is not excused by an Uncontrollable Circumstance. b. Contractor Notice of Uncontrollable Circumstance. Contractor will give immediate Notice of an Uncontrollable Circumstance to MB, including: (1) describing the Breach for which Contractor seeks to be excused; (2) the expected duration of the Uncontrollable Circumstance; (3) the extent to which Contractor may curtail Contract Services; (4) any requests or suggestions to mitigate the adverse effects of the Uncontrollable Circumstance. c. KIB's Rights. (1) Perform Contract Services. Notwithstanding that a Breach due to Uncontrollable Circumstances does not constitute a Default, after the continuance of the Breach for 48 hours, in its sole discretion, MB may nevertheless perform (or cause to be performed) Contract Services in the Contract Service Area itself under Section 14.09. (2) Exercise other remedies. After the continuance of any Breach for 30 days, MB may, in its sole discretion, exercise any other remedy under this Contract, including suspending or terminating this Contract under Section 15.01. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 14.04 Remedies. a. As provided by law. Either Party may exercise any and all remedies available under law or equity for the other Party's breach of this Contract. A Party's exercise of any one remedy, including KIB's assessing Liquidated Damages or Compensatory Damages, is not an election of remedies but is cumulative with any other available remedies. b. KIB's additional remedies. In addition to exercising any remedy available under law or equity, upon occurrence of a Default, KIB in its sole discretion may exercise any or all of the following additional remedies: (1) Termination. Terminate this Contract or any portion of Performance Obligations under Section 15.01a; (2) Suspension. Suspend this Contract or any portion of Performance Obligations under by Section 15.01b; (3) Perform Contract Services. Perform Performance Obligations under Section 14.09; (4) Injunctive Relief / Damages. Seek to obtain injunctive relief and/or damages; (5) Damages. Assess Liquidated Damages, Compensatory Damages and any other damages under law, and; (6) Financial Assurances. Draw on the Letter of Credit, demand payment under the Guaranty or any Indemnity, or submit any claim under Insurance. c. Injunctive relief. Contractor acknowledges that KIB 's remedy of damages for Breach or Default may be inadequate for reasons including the following: (1) public health and safety. The urgency of timely, continuous and high - quality Contract Services, including Collection, transportation and/or transfer and Disposal of putrescible solid wastes that constitute a threat to public health; (2) procurement time and expense. The long time and significant investment of money and personnel (including KIB's staff, elected officials and MB Counsel, as well as procurement counsel and consultants) required to do the following: (i) develop a scope of Contract Services and Performance Obligations acceptable to MB, (ii) draft this Contract and related procurement documents, (iii) solicit comments on this Contract and procurement documents from MB (and KIB Counsel) and Persons interested in proposing to provide Contract Services, (iv) meet with those potential proposers to discuss their comments and answer their questions about this Contract and the procurement, (v) finalize this Contract and procurement documents, (vi) solicit proposals for Contract Services, (vii) review and evaluate those proposals and seek clarifications of those proposals, (viii) award this Contract under MB's Applicable Law, (ix) finalize execution of this Contract, including reviewing, commenting on and approving (if required) Contractor Documentation, and, (x) conform KIB Code to the new automated Refuse Collection programs; and COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (3) reliance on Contractor. KIB's reliance on Contractor's meeting evaluative criteria on which award of this Contract was based, such as the following: (i) solid waste management experience, (ii) MB references, (iii) qualifications of key personnel, (iv) environmental programs and proposed Unpermitted Waste Screening Protocol, (v) litigation history, (vi) Contractor's proposed transition, Customer education, diversion and other plans, (vii) acceptance of terms of this Contract, and (viii) Diversion record. (4) re- procurement time and expense. The length and significant investment of time and money described in item (2) to develop alternative MSW Management Services comparable to Contract Services for the price provided under this Contract, and to negotiate new agreements therefore. Consequently, MB is entitled to all available equitable remedies, including injunctive relief. d. Contractor Payment Obligations. MB may collect Contractor Payment Obligations due and owing by Contractor to MB by any or all of the following means: (1) demanding payment from Contractor or Guarantor, (2) drawing on the Letter of Credit, (3) submitting claims as an additional insured under Insurance policies or under contractual liability provisions of Insurance policies, and (4) directing Contractor to offset Contractor Payment Obligation from Contractor Service Fees that Contractor received from Customers to remit them to MB. 14.05 Additional Compensatory Damages. Without limiting MB's rights to seek Compensatory Damages under Section 14.01 or law, MB may seek the following compensatory damages: (1) Amounts equal to any Contractor Payment Obligations or other amounts that Contractor has previously paid to KIB but are subsequently recovered from MB by a trustee in bankruptcy as preferential payments or otherwise; (2) If MB terminates this Contract for Default, MB's Reimbursement Costs to provide or re- procure MSW Management Services in lieu of Contract Services; and (3) If MB terminates this Contract for Default, MB's projected Direct Costs of replacing MSW Management Services in excess of Contractor Service Compensation for the balance of the Term remaining if this Contract had not been terminated, as based on service fees under replacement agreements for those MSW Management Services. THIS SECTION WILL SURVIVE THE TERMINATION OF THIS CONTRACT FOR 180 DAYS OR OTHER PREFERENCE PERIOD PROVIDED UNDER APPLICABLE LAW COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK WITH RESPECT TO BANKRUPTCY OR INSOLVENCY. MB may draw upon the Letter of Credit, Guaranty or any other available Performance Assurance to pay compensatory damages. 14.06 Waivers. a. Waiver of Breach. No waiver of any Breach or Default constitutes a waiver of any other Breach or Default. Failure of MB to enforce any provision of this Contract may not be construed as a waiver of KIB's enforcement rights. KIB's subsequent acceptance of any damages or other money paid by Contractor may not be deemed to be a waiver by KIB of any pre - existing or concurrent Breach or Default. b. Contractor Waiver of Certain Defenses. Contractor acknowledges that it is solely responsible for providing Contract Services and by this Contract irrevocably and unconditional waives defenses to the payment and performance of its obligations under this Contract based on failure of consideration; contract of adhesion; impossibility or impracticability of performance; commercial frustration of purpose; or the existence, non - existence, occurrence or non- occurrence of any foreseen or unforeseen fact, event or contingency that may be a basic assumption of Contractor with regard to any provision of this Contract; provided that Contractor does not by this Contract waive any defenses under this Contract of Uncontrollable Circumstances. 14.07 Jurisdiction; Venue, Costs. a. Jurisdiction. Parties will bring any lawsuit arising out of this Contract in State courts, which will have exclusive jurisdiction over those lawsuits. Each Party consents to jurisdiction over its person and over the subject matter of any litigation in those courts and to service of process issued by those courts to the Parties at their addresses for Notice. b. Venue. Venue is made in and will be performed in courts sitting in Anchorage, AK, to the extent permitted by Applicable Law. Parties further agree that the site of any other hearing or action, whether arbitration or non judicial, of whatever nature or kind regarding this Contract, will be conducted in Kodiak, AK. c. Costs. The non - prevailing Party in any dispute involving this Contract will pay the prevailing Party's Reimbursement Costs. 14.08 Enforcement Costs. Contractor will reimburse MB promptly upon request for either or both of the following MB's Reimbursement Costs: (1) investigating any alleged Breach, or (2) incurred by MB as a consequence of a Breach. 14.09 MB Right to Perform. a. Events. MB may perform, or providing for the performance of, any or all Performance Obligations (such as Collection or transportation and delivery of Refuse to KIB Landfill) upon COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK the occurrence of either of the following events determined by KIB in its sole discretion: (1) Failure to Collect or Dispose for 48 hours. (i) Contractor, due to Uncontrollable Circumstances or for any reason whatsoever, fails, refuses or is unable to Collect any Solid Waste and transport it to KIB Landfill (or other KIB- approved Facility) for a period of 48 hours after the Collection or acceptance was required under this Contract, and (ii) MB determines in its sole discretion that there is a danger to the public health, safety or welfare; or (2) Suspension or termination of Contract. MB suspends or terminates all or a portion of this Contract. b. Continuation. MB has no obligation to continue performing or providing for the performance of any or all Performance Obligations and may at any time, in its sole discretion, cease to provide any or all Performance Obligation. However, MB's right to perform or provide for the performance of any or all Performance Obligations will continue until either of the following: (1) Resumption of Service. Contractor can demonstrate to MB's satisfaction that Contractor is ready, willing and able to resume timely and full performance of all Performance Obligations, or (2) Alternative service arrangements. MB can make alternative arrangements for providing MSW Management Services, in its judgment comparable to Contract Services in scope and price, which may include contracting with another service provider. c. Notice. MB may give Contractor 24 hour oral notice that MB is exercising any or all of MB's rights under this Section. The oral notice will be effective immediately, but to remain effective, within another 24 hours MB must confirm that oral notice with a Notice (which is in writing). d. Service Assets. 40 (1) Possessory interest. MB may take possessory interest in any or all Contract Service Assets necessary or convenient in performing or providing for the performance of Performance Obligations relating to Collection, and Contractor will fully cooperate with MB to transfer possessory interest in those Contract Service Assets to MB. Customers' possession of Carts will be deemed possession by MB if necessary to exercise this right. MB may use those Contract Service Assets to provide all or a portion of those Contract Services. It will have absolute and exclusive control over those Contract Service Assets as though it was the absolute owner thereof and assume complete responsibility for use of those Contract Service Assets while those Contract Service Assets are in MB's possession. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (2) Maintenance. At KIB's request, Contractor will keep those Contract Service Assets in good repair and maintenance (including fully fueled and oiled,) or pay KIB's Direct Costs of repair and maintenance. Subject to repair and maintenance performed by Contractor, MB will do the following: (i) maintain those Contract Service Assets in the same condition as they were in when Contractor transferred their possession to MB; and (ii) return those Contract Service Assets to Contractor in the same condition as received, normal wear and tear excepted. (3) Insurance. Contractor will maintain in full force and effect all Insurance during KIB's use of Contract Service Assets. By granting MB the right to possession and use of Contract Service Assets, Contractor declares as follows: (i) MB or MB's personnel or designees using those Contract Service Assets are permitted users for purposes of liability Insurance, and (ii) use and possession of those Contract Service Assets is not intended to be and is not transfer of ownership for purposes of any liability Insurance. Contractor will execute whatever documentation its liability Insurers require to ensure that MB and its designees are protected and covered by liability Insurance, including requesting and executing endorsements to liability policies. MB may secure endorsements at its cost. MB may call and confer with Contractor's insurance agent, broker and underwriter to determine what, if any, documentation or actions are necessary to achieve protection satisfactory to MB. By executing this Contract, Contractor authorizes its insurance broker to cooperate with and respond to requests from MB. Contractor may not rescind this authorization without MB consent. 4. Contract Service Asset Documentation. Each Contract Service Asset Document must allow MB to assume Contractor's obligations and to continue use of those Contract Service Assets in performing MSW Management Services. e. Contractor's Personnel. MB may immediately engage any or all of Contractor's present or prior employees and Subcontractors to provide all or a portion of Contract Services relating to Collection (including drivers, route supervisors, management and office personnel who provide Customer service and billing). However MB is not obligated to hire Contractor's employees or Subcontractors and may use municipal employees or other Persons to provide all or a portion of Contract Services relating to Collection. Promptly upon receiving notice under Subsection c, Contractor will make available its employees or Subcontractors to MB. f. Records. At MB request, Contractor will immediately provide MB or its designees with immediate access to Contractor Office at any time MB is exercising its rights under this Section and possession of any or all Records, including those related to routing and Customers' frequency and level of Contract Service (such as Customer Service Subscription data). 4 1 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK g. Contractor Payment or MB Reimbursement. (1) Uncontrollable Circumstances. In the following events: (i) items (1) and (2) in Subsection a are due to Uncontrollable Circumstances, and (ii) Contractor is not being paid (or if Contractor bills in advance, has not been paid) through billing and collecting Customer charges, then the MB will pay Contractor each of the following costs: (iii) rental fees for use and possession of those Contract Service Assets equal to their fair market value as determined by an independent appraiser selected by the Parties in the same manner as the Independent Expert in Section 12.03a; (iv) Contractor's Direct Costs of providing Vehicles with fuels, oil and other maintenance under Subsection d(2); (v) Contractor's Direct Cost of making personnel available to MB under Subsection e. (2) Other than Uncontrollable Circumstances. If the events enumerated in paragraphs numbered (1) and (2) in Subsection a are not due to Uncontrollable Circumstances, then MB is not obligated to pay the compensation enumerated in preceding Subsection g(1) and Contractor will pay KIB's Reimbursement Costs of performing Performance Obligations within 10 days of its submitting an invoice for that compensation. If Contractor does not timely pay that invoice, MB may draw upon any or all Performance Assurances. h. Stipulations. Contractor stipulates that MB's exercise of rights under this Section does not do any of the following: (1) create any liability on its part to Contractor, (2) constitute a taking of private property for which it must compensate Contractor, or (3) exempt Contractor from any Indemnities, which Parties acknowledge are intended to extend to circumstances arising under this Section. However, Contractor is not required to indemnify MB against claims and damages arising from the negligence of MB's officers and employees (other than employees of Contractor at the time they commenced performing Contract Services), contractors and agents driving Collection Vehicles. ARTICLE 15: SUSPENSION OR TERMINATION. 15.01 MB Right to Suspend or Terminate. a. Termination Events. MB may, in its sole discretion, terminate this Contract in whole or in part, in the following Termination Events: (1) Default. The occurrence of a Default; (2) Uncontrollable Circumstances. The occurrence and continuance of an Uncontrollable Circumstance under Section 14.03c; (3) Non - severable Provisions. Any Contract Provision defined in Section 20.05 is ruled unconstitutional, illegal, invalid, non - binding or unenforceable by any court of competent jurisdiction and MB determines not to sever it but to terminate this Contract; 42 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (4) Assignment of Guaranty Without Consent. The Guarantor transfers the Guaranty without consent required by the Guaranty, and on or before 15 days after the transfer, the Guarantor does not provide MB with a substitute Guarantor or alternative financial credit support satisfactory to MB. b. Suspension Events. Upon the occurrence of any Termination Event, MB may in its sole discretion suspend this Contract, in whole in or in part, for no longer than 30 days. During the suspension period Contractor will have the opportunity to demonstrate to the satisfaction of MB that Contractor can once again fully perform Contract Services. If Contractor so demonstrates to satisfaction of MB in its sole discretion, MB's right to suspend or terminate this Contract will cease and Contractor may resume providing Contract Services. If Contractor does not so demonstrate, MB may terminate this Contract and exercise its additional rights and remedies. c. Notice. MB will give Contractor a Notice of termination or suspension effective at the following times: (1) immediately or upon other period stated by MB with respect to the following Defaults described in Section 14.02: (i) Insurance (Failure to Provide Performance Assurances), and (ii) insolvency, bankruptcy, liquidation, to the extent permitted by Applicable Law (Insolvency, Bankruptcy, Liquidation), or (2) upon Contractor's receipt of Notice with respect to any other Default, unless MB specifies an alternative date in the Notice; (3) a date MB specifies in the Notice. d. Suspension, Termination of a Portion of Performance Obligations: Reduction in Fee. If MB suspends a portion of this Contract or terminates some but not all Performance Obligations, Contractor will continue to fully perform its remaining Performance Obligations and the Contractor Service Fee will be adjusted to reflect reductions in Performance Obligations. For example, if KIB suspends Performance Obligations with respect to Collection of Bulky Items upon the occurrence of a Termination Event, Contractor would be obligated to fully perform its other obligations under this Contract (such as Collection of Refuse). 15.02 Criminal Activity a. Notice. Contractor will immediately give Notice to KIB of either of the following with respect to Contractor or any Contract Manager (except for the Contract Manager in a Position of Influence): (1) conviction of a Criminal Activity ( "conviction ") or (2) plea of "guilty", nolo contendere" or "no contest" to a Criminal Activity ( "plea ") Contractor will promptly give Notice to MB of any of those convictions or pleas with respect to the Contractor Manager in a Position of Influence. 43 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK b. Cure. Upon the occurrence of any conviction or plea defined in Subsection a, Contractor immediately will do or cause to be done both of the following: (1) terminate from employment anyone in a Position of Influence or remove from office anyone in a Position of Influence, unless otherwise directed or ordered by a court or Regulatory Authority of competent jurisdiction and/or authority, and unless termination would subject Contractor, an Affiliate or any of its Contract Managers to substantial liability for breach of any labor agreement entered into before the Contract Commencement Date, and (2) refrain from employing or appointing that individual or individuals responsible for the Criminal Activity from any other Position of Influence. c. MB remedies. Upon the occurrence of either of the following events: (1) Contractor or any Affiliate fails to effectuate the cure described in Subsection b, or (2) the Criminal Activity is related to this Contract or occurs within the boundaries of KIB (incorporated or unincorporated), KIB may take any or all of the following actions: (3) suspend or terminate this Contract, or (4) impose other sanctions (which may include financial sanctions and any other condition KIB deems appropriate, short of suspension or termination) as it deems proper. d. Limitations on Contractor Manager. No Contractor Manager may have previously (1) been convicted of a Criminal Activity, or (2) plead "guilty", nolo contendere" or "no contest" to a Criminal Activity. ARTICLE 16: TRANSFER OF CONTRACT. 16.01 Contractor Transfer. a. Acknowledgment. Contractor acknowledges that Contractor submitted evidence to KIB with respect to Contractor's experience, expertise and qualifications to provide Contract Services, and that Contractor's experience, expertise and qualifications were material considerations of KIB in entering into this Contract with Contractor. b. MB consent. Without KIB consent, given in KIB's sole discretion, Contractor will not Transfer in whole or in part, voluntarily or involuntarily any of the following: (1) this Contract, (2) the Guaranty, or (3) any rights or duties in this Contract or under the Guaranty, Contractor may not circumvent KIB's consent rights by securing Goods or Services from a Subcontractor. 44 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Contractor acknowledges that in its submitted proposal to provide Contract Services and enter into this Agreement it described the experience, qualifications and operations not only of Contractor itself, but of the following companies that are wholly owned by Contractor as of the Contract Commencement Date: Alaska Waste Transfer, Alaska Waste, Alaska Waste Interior, LLC, and Alaska Waste Kenai Peninsula, LLC (together, "Contractor's Operations "). Furthermore, in its proposal Contractor did not take an exception to its Performance Obligation to provide the Guaranty. Therefore, in lieu of providing the Guaranty, Contractor will not Transfer in whole or in part, voluntarily or involuntarily any of Contractor's Operations without KIB consent, given in KIB's sole discretion. For purposes of this Performance Obligation and KIB right, the definition of "Transfer ", the "Contractor" is deemed to include "Contractor's Operations. c. Contractor request. Without obligating KIB to give consent, Contactor will demonstrate to KIB's satisfaction that the proposed transferee has the operational and financial ability to satisfy Performance Obligations. MB is not obligated to consider any proposed Transfer by Contractor if Contractor is in Breach at any time during KIB's consideration. d. Payment of KIB's Transfer Costs. (1) Transfer Deposit. Contractor must make any request for KIB's consent to a Transfer in the manner prescribed by MB. Contractor must pay MB the Transfer Deposit before MB will consider Contractor's request. "Transfer Deposit" means lesser of the following refundable amounts: (i) $1,500 (ii) MB's anticipated Transfer Costs. (2) Additional Transfer Costs. Within 30 days of MB's request, Contractor will further pay MB's additional Transfer Costs in excess of the Transfer Deposit, whether or not that MB approves the Transfer. "Transfer Costs" means the following KIB's Reimbursement Costs: (i) considering and reviewing Contractor's request for Transfer, (ii) investigating the suitability of the transferee, and (iii) determining whether or not to give its consent, (iv) preparing documents to effectuate the Transfer. (3) KIB's Reimbursement Costs of enforcement. Within 30 days of MB's request, Contractor will pay MB's Reimbursement Costs for fees and investigation costs as MB deems necessary to enjoin the Transfer or to otherwise enforce this Section e. Novation. If MB consents to Transfer of this Contract, upon request of the transferee, KIB will execute a novation under which the Person which is the transferee Contractor assumes all of the rights and Performance Obligations of the transferor Contractor. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ARTICLE 17: THE PARTIES. 17.01 Contractor Is Independent Contractor. The Parties agree and the Contractor acknowledges as follows: (1) Contractor is an independent entity and contractor engaged by MB and not KIB's Related Party or a joint venturer with MB. (2) No employee or agent of Contractor is deemed to be KIB's Related Party. (3) Contractor will have the exclusive control over the manner and means of performing Contract Services and over all Persons performing Contract Services. (4) Contractor is solely responsible for the acts and omissions of Contractor's Related Parties, none of whom is deemed to be KIB's Related Party. (5) Nothing in this Contract may be construed as creating an arrangement for handling Unpermitted Waste. (6) Neither Contractor nor any of Contractor's Related Parties will obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits that accrue to MB employees and Contractor expressly waives any claim it may have or acquire to those benefits. (7) Contractor bears the sole responsibility and liability for furnishing workers' compensation and all other benefits required by law to any individual for injuries arising from or connected with Contract Services. 17.02 Parties in Interest. Nothing in this Contract, whether express or implied, is intended to confer any rights on anyone other than the Parties and the Parties' respective representatives, successors and permitted assigns. Related Parties are third party beneficiaries of provisions in this Contract that reference them. 17.03 Binding on Successors. The provisions of this Contract will inure to the benefit of and be binding on the successors and permitted assigns of the Parties. 17.04 Further Assurances. Each Party agrees to execute and deliver any instruments and to perform any acts as may be necessary or reasonably requested by the other to give full effect to this Contract, including Contractor Documentation. Contractor will complete Contractor Documentation satisfactory to MB by the Contract Commencement Date. 17.05 Actions of MB in Its Governmental Capacity. Nothing in this Contract may be interpreted as limiting the rights and obligations of MB in its governmental or regulatory capacity. 17.06 Contractor's Obligations Performed at Its Sole Expense. Contractor will perform Contract Services solely for the compensation expressly provided for in this Contract. 46 COLLECTION SERVICES CONTRACT Kodiak Island Borough, AK 17.07 Parties Representatives. a. MB (1) Identification. MB Representative is the Manager or his or her designee, as may be amended upon Notice to Contractor by MB in KIB's sole discretion. (2) Delegation. By authorizing the execution of this Contract, MB delegates to MB Representative the authority to exercise KIB's rights, remedies and options under this Contract and administer this Contract, except with respect to the following, which must be approved by the MB Governing Body: (i) extending the Term for an additional year or more, (ii) suspending or terminating this Contract, (iii) approving or disapproving Transfer of this Contract, (iv) amending this Contract, including the Contractor Service Fee due to changes in operations under Section 13.03a2, but not annual adjustments under 13.03a1, (v) Indemnities, and (vi) exercising any delegation of authority contrary to Applicable Law. b. Contractor Representative. Contractor Representative is named in Contractor Documentation. Contractor Representative must have at least 5 years experience in Solid Waste collection services before being named Contractor Representative. Contractor Representative is authorized to act on behalf of Contractor in the satisfaction of all Performance Obligations and exercise of Contractor's rights and options under this Contract. 17.08 Due Diligence. Contractor acknowledges each of the following: (1) MSW Management Services, including Contract Services, are highly regulated under Applicable Law, (2) waste management is a public health and safety concern. Contractor agrees that it will exercise due diligence in performing Contract Services. 17.09 No Use of MB Name. Contractor will not do business as or use a corporate, partnership, venture or other formal name, containing the name of any MB or implying government ownership. 17.10 Subcontractors. a. Subcontracts exceeding $50,000. Contractor will not engage any Subcontractor in an amount exceeding $50,000 for any individual Subcontractor without MB's prior approval of the Subcontract and Subcontractor. Any Subcontract entered into without MB's prior approval is void. Contractor will identify approved Subcontractors in Contractor Documentation. b. Contractor responsibility. Contractor is solely responsible for directing the work of Subcontractors and paying Subcontractors' compensation. 4? COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK c. Removal. KIB may require Contractor to remove any approved Subcontractor for any of the following reasons: (1) failure to provide Contract Services, (2) non - compliance with Applicable Law, or (3) in KIB's judgment, conduct that is abusive, rude or unsafe. d. Reference to Subcontractors. Specific reference to Subcontractors under this Contract (such as with respect to compliance with Applicable Law and meeting Insurance requirements) does not imply that lack of specific reference to Subcontractors elsewhere under this Contract exempts Subcontractors from complying with this Contract. ARTICLE 18 : AMENDMENTS. 18.01 Amendments. a. MB Governing Body authorization and direction / Contractor consent. Amendments to Contract rights, remedies and options that are not delegated to the KIB Representative under subsection b will be effective upon completion of the following actions: (1) authorization and direction of KIB Governing Body, (2) consent of the Contractor, and (3) due execution by the Parties of an amendment reflecting those changes. b. MB Representative Consent / Contractor Representative Consent. All other Amendments to this Contract will be effective upon completion of the following: (1) consent of MB Representative (except for Contractor's amendments to Contractor Documentation that do not require MB consent), (2) consent of Contractor Representative (except for amendments to Attachments to this Contract that do not require Contractor consent, such as changing Contractor's address for Notices), and (3) due execution by the Parties of text reflecting those changes. Examples of those amendments include the following: (4) amendments not listed in Subsection a, (5) Contractor Documentation, and (6) Exhibits or Attachments to this Contract (except with respect to Contractor Service Fee other than annual adjustments). c. Due execution. For purposes of this Section, "due execution" of amendments to the text of this Contract means the Parties': (1) witness and signing written amendment in the form provided on the signature page of this Contract; and (2) warranties as to their due authorization and execution of the amendment. "Due execution" of amendments to Contractor Documentation, Attachments and Exhibits means KIB and Contractor Representative signing and dating the amendments. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK ARTICLE 19 : NOTICES, CONSENTS, APPROVALS, ETC. 19.01 Notices, etc. Notices must be given at the addresses provided in Contractor Documentation attached to this Contract, as follows: (1) by Email or facsimile promptly followed by personal or mailed delivery, or (2) by personal delivery to the Contractor Representative or KIB Representative, as the case may be, or (3) by deposit in the United States mail first class postage prepaid (certified mail, return receipt requested), or (4) by commercial delivery service providing delivery verification. Notice by MB to Contractor of a missed pick -up or a Customer problem or complaint may be given to Contractor orally by telephone to Contractor Representative or other Contractor personnel responsible for taking complaints from MB or the public. Parties may change their address upon Notice to the other Party. 19.02 Writing Requirements. All Notices, reports, demands, requests, directions, selections, option exercises, orders, proposals, reviews, comments, acknowledgments, approvals, agreements, consents, waivers, certifications and other communications made under this Contract must be in writing, except the following: (1) oral communication is explicitly authorized, and (2) communication with respect to routine Contract administration, such as submitting Records or Reports, correcting Reports or, discussing Customer complaints. 19.03 Exercise of Options. Parties will exercise any approval, disapproval, consent, acceptance, option, discretion, election, opinion or choice under this Contract, make a requirement under this Contract or interpret this Contract ( "Discretionary Action ") reasonably. Recognizing the essential public health and safety protections this Contract serves, where this Contract specifically provides that the exercise of any Discretionary Action is in either Party's independent, sole, exclusive or absolute discretion, control or judgment, the other Party will not question or challenge the other Party's exercise thereof. Parties will nevertheless exercise their rights and remedies in good faith as required by Applicable Law. Any mediator or court must find the Party's exercise to be reasonable. 49 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ARTICLE 20: DEFINITIONS AND INTERPRETATION OF CONTRACT. 20.01 Definitions. In this Contract words have the meanings defined in Attachment 20.01, which control in the event of any conflict with the definitions used in the recitals above. 20.02 Interpretation of Contract. a. Plurality. Terms that are defined in the singular and plural in Article 20, include both singular and plural throughout the Contract, unless the context demands otherwise. b. Headings, Font. Any caption or heading after the ATTACHMENT, EXHIBIT, ARTICLE, Section, lettered subsection, Arabic - numbered subsection or Roman - numbered subsection and numbered lists preceding the operative text of this Contract is for convenience of reference only and does not in any way control or affect the scope, intent, meaning, construction, interpretation or effect of this Contract. Any underlined, italicized, bold- faced, UPPER -CASED or other font style is for ease of reading and contract administration, and it does not in any way imply relative importance or unimportance of any provision of this Contract. c. References to Parts. References to Sections and Articles refer to Sections and Articles of this Contract, unless specified otherwise. References to Attachments and Exhibits refer to Attachments and Exhibits appended to this Contract. References to subsections are to the Section in which that subsection occurs, unless otherwise provided. d. Examples. Examples are for purpose of illustration only. If any example is ambiguous or conflicts with the text that it illustrates, the text governs. e. Specifics no limitation on generalities. The mention of any specific duty or liability imposed upon Contractor may not be construed as a limitation or restriction of any general liability or duty imposed upon Contractor by this Contract or Applicable Law. f. Ambiguities, Inconsistencies and Conflicts. If any provision contained in the body of this Contract is ambiguous, inconsistent with or conflicts with any Attachments or Exhibits to this Contract, the provisions of the body of this Contract will govern. g. Time for performance. Any reference to the number of days (or other period of time) in which any action must be taken means consecutive calendar days, without regard to intervening Holidays or Sundays. However, if any Performance Obligation (other than emergency services described in Section 9.07) must be performed on a Holiday or Sunday, the time for performance is extended until next Service Day. 20.03 Integration. This Contract contains the entire agreement between the Parties with respect to their rights and obligations under this Contract. This Contract completely and fully supersedes all prior understandings and agreements between the Parties with respect to their 5 0) COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK respective rights and obligations, including those contained in each of the following: (1) requests for proposals, (2) proposals, (3) memorandums, (4) correspondence, (5) telephone calls, (6) field trips, (7) interviews, (8) negotiations, and (9) KIB Governing Body sessions. 20.04 Governing Law. This Contract is governed by, and construed and enforced as required by, the Applicable Law of the State, without giving effect to the State's principles of conflicts of laws. 20.05 Severability. If any clause, sentence, provision, subsection, Section or Article of this Contract or Exhibit or Attachment to this Contract (a "Contract Provision ") is ruled unconstitutional, illegal, invalid, non - binding or unenforceable by any court of competent jurisdiction, then the Parties will take the following actions: (1) promptly meet and negotiate a substitute for the Contract Provision and any related amendments, deletions or additions to other provisions of this Contract which together effect the Parties' original intent to the greatest extent allowable under Applicable Law; and (2) if necessary or desirable to accomplish preceding item (1), apply to the court that declared said invalidity for a judicial construction of the substituted Contract Provision and any amendments, deletions or additions to this Contract. Within 10 days of any KIB's request, Contractor will pay KIB half of the Direct Costs of that application. The unconstitutionality, illegality, invalidity, non - binding nature or unenforceability of any Contract Provision will not affect any of the remaining provisions of this Contract. This Contract will be construed and enforced as if the Contract Provision did not exist. However, if any Contract Provision with respect to MB direction to a Solid Waste Management Facility is ruled unconstitutional, illegal, invalid, non - binding or unenforceable by any court of competent jurisdiction, then MB in its sole discretion may take either of the following actions: (3) sever that Contract Provision and construe and enforce this Contract under this Section, or (4) terminate this Contract. Contractor agrees not to challenge the constitutionality, legality, validity, enforceability or binding nature of either of the following provisions of this Contract: (5) Contractor obligation to deliver Refuse to MB Landfill, (6) Contractor obligation to any other type of Solid Waste (such as recyclables) to any other Solid Waste Management facility as directed by MB. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK 20.06 Interpretation. This Contract must be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. Contractor acknowledges that it determined to provide Contract Services in KIB and execute this Contract upon its own choice and initiative and that it had the opportunity to submit comments, recommend changes and take exception to the proposed provisions of this Contract during the procurement process. Each Party represents and warrants that it has reviewed this Contract and has either commented upon this Contract or had the opportunity to do so, with advice of its attorneys. No provision in this Contract may be construed against KIB solely because MB prepared this Contract in its signed form. 20.07 New Contract. This Contract is a new obligation between the Parties and is a novation, substitution and replacement for any present or prior contracts or agreements between the Parties connected with or related to MSW Management Services. ARTICLE 21: EXECUTION OF CONTRACT. 21.01 Execution in Counterparts. This Contract may be signed in any number of original counterparts. All counterparts will constitute but one and the same Contract. 21.02 Authority to Execute. a. MB. KIB warrants that its officers listed below have been duly authorized to execute this Contract on its behalf. b. Contractor. Contractor warrants that the individuals listed below have been duly authorized to execute this Contract on behalf of Contractor. KODIAK ISLAND BOROUGH ALASKA PACIFIC ENVIRONMENTAL Alaska, a political subdivision SERVICE, LLC By: By: Name: Rick L. Gifford Name: Jeff Riley Title: Manager Title: Chief Operations Officer Dated: Dated: ATTEST: ATTEST: By: MB CLERK Name: Name: Nova M. Javier, CMC Dated: Dated: APPROVED AS TO FORM: MB COUNSEL Name: Dated: COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ATTACHMENT 2.01: CONTRACTOR'S REPRESENTATIONS AND WARRANTIES. a. Status. Contractor is a corporation duly organized, validly existing and in good standing under the laws of the State and is qualified to do business in the State. b. Authority and Authorization. Contractor has full legal right, power and authority to execute and deliver this Contract and satisfy its Performance Obligations. This Contract has been duly signed and delivered by Contractor and constitutes a legal, valid and binding obligation of Contractor enforceable against Contractor in accordance with its terms. c. No conflicts. Neither the execution nor delivery by Contractor of this Contract, the performance by Contractor of its Performance Obligations, nor the fulfillment by Contractor of the terms and conditions of this Contract: (1) conflicts with, violates or results in a breach of any Applicable Law; (2) conflicts with, violates or results in a breach of any term or condition of any judgment, order or decree of any Regulatory Authority or any agreement or instrument to which Contractor or any of its Affiliates is a party or by which Contractor or any of its Affiliates' properties or assets are bound, or constitutes a default there under; or (3) will result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of Contractor. d. No approvals required. No approval, authorization, license, permit, order or consent of, or declaration, registration or filing with any governmental or administrative authority, commission, Governing Body, agency or instrumentality is required for the valid execution and delivery of this Contract by Contractor, except those that have been duly obtained from its Board of Directors or other governing body. e. No litigation. There is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental authority, commission, Governing Body, agency or instrumentality pending or, to the best of Contractor's knowledge, threatened, by or against Contractor wherein an unfavorable decision, ruling or fmding, in any single case or in the aggregate, would adversely affect the performance by Contractor of its obligations under this Contract or in connection with the transactions contemplated by this Contract, or which, in any way, would adversely affect the validity or enforceability of this Contract or any other agreement or instrument entered into by Contractor in connection with the transactions contemplated by this Contract. There is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental authority, commission, board, agency or instrumentality pending or threatened, by or against KIB by Contractor. f. Due Diligence. Contractor has made an independent investigation, examination and research satisfactory to it of the conditions and circumstances surrounding this Contract and best COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK and proper method of providing Contract Services (including the types of Contract Services) and labor, equipment and materials for the volume of Contract Services to be provided. Contractor agrees that it will make no claim against KIB based on any good faith estimates, statements or interpretations made by any officer, employee or agent of KIB that proves to be in any respect erroneous. g. Compliance with Applicable Law. Contractor further represents and warrants that it has fully complied with all Applicable Law, including without limitation law relating to conflicts of interest, in the course of procuring this Contract. h. Truth and Accuracy of Application etc. Information in the following documentation provided by Contractor is true, accurate and complete: (1) Contractor Documentation, and (2) Contractor's proposal submitted in response to KIB's Request for Proposals for this Contract (together with any addendum thereto), including all clarifications to that proposal. Contractor will promptly amend Contractor Documentation to reflect any changes in Contractor Documentation and submit it to MB. ATTACHMENT 2.02: KIB'S REPRESENTATIONS AND WARRANTIES. a. Status. MB is a political subdivision of the State, duly organized and valid existing under the Constitution and laws of the State. b. Authority and Authorization. MB has full legal right, power and authority to execute, deliver, and perform its obligations under this Contract. This Contract has been duly signed and delivered by MB and constitutes a legal, valid and binding obligation of MB enforceable against MB in accordance with its terms. c. No Warranty Regarding Waste Characterization or Volume. MB makes no warranties with respect to the Solid Waste characterization or volume. MB disclaims any warranties, either express or implied, as to the merchantability or fitness for any particular purpose of materials that Contactor handles under this Contract. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK ATTACHMENT 4: REFUSE COLLECTION AND TRANSPORTATION TO MB LANDFILL. 4 -3.03 Obligations Upon Termination or Expiration. a. Contractor Removal of Refuse Containers. If MB does not exercise its option under Subsection b to acquire any or all Refuse Containers, then upon expiration or termination of this Contract, Contractor will remove Refuse Containers at the following times: (1) after replacement Carts are provided to the Customer's Premises, or (2) at the time directed by KIB. Contractor will use Reasonable Business Efforts to reuse or recycle all removed Refuse Containers. For example, Contractor might ship Carts to the Cart manufacturer of Carts for recycling, or deliver dumpsters for metal salvage.. b. Contractor Transfer of Container Ownership to MB. In consideration of the privileges granted under this Contract and for Contractor Service Fees previously received during the Term, within 5 KIB Business Days of MB direction, Contractor will transfer to MB ownership of any or all Refuse Carts and any or all Refuse Dumpsters in the following events: (1) the effectiveness of any Notice of termination by MB under this Contract, or (2) the expiration of this Contract. Upon MB request, Contractor will promptly provide MB with the following documentation: (3) any or all Contract Service Asset Documents, such as manufacturers warranties, maintenance agreements, financing documents and recorded financing statements, and (4) any other documentation evidencing transfer of ownership of any or all Refuse Containers to MB. c. Survival. CONTRACTOR'S OBLIGATIONS IN THIS SECTION SURVIVE TERMINATION OR EXPIRATION OF THIS CONTRACT. 4 -4.01 Automated Refuse Collection in Carts. a. Automated or Semi - automated Cart Collection. Contractor will Collect all Carts by automated or semi - automated manner. "Automated" means that Carts are lifted from their Set - out Site, emptied and set back down at their Set -out Site by mechanical means. "Semi - automated" means that Carts are rolled by individuals from the Carts' Set -out Sites into position near the Collection Vehicle; lifted, emptied and set back down by mechanical means; and rolled back by individuals to their Set -out Sites. b. Default Collection in Carts at Residential / Optional Commercial or Multifamily Premises. 55 (1) Residential. Beginning on the Collection Commencement Date, Contractor will Collect all Residential Refuse discarded in Carts at Residential Premises located COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (2) Commercial or Multifamily Collection. Beginning on the Collection Commencement Date, at the request of the owner or occupant of a Commercial or Multi- family Premise, Contractor will Collect all Refuse discarded in Carts at that Commercial awl or Multifamily Refuse Premise weekly, on the Regularly same Scheduled Collection Day. c. Cart options. d. Cart Roll -out Service. 56 within the City of Kodiak (or other area as designated by MB in Notice to Contractor) weekly, on the same Regularly Scheduled Collection Day. (1) Default Residential Service: 64 gallon Refuse Carts. Unless Contractor must provide Roll -Off Containers under Section 6 -6.02, Contractor will provide each Residential Premise with one 64- gallon capacity Refuse Cart for the charge listed on the Service Fee Schedule, except if the owner or occupant of that Residential Premise directs Contractor to provide a different number or capacity of Carts under following Subsection c(2). (2) Larger / smaller, more / fewer Refuse Carts. At any Cart Customer's request, Contractor will provide that Customer's Premise with Refuse Carts in alternative number and capacity options offered on the Service Fee Schedule (such as 32 or 96- gallon capacity Cart) for the corresponding additional (or lesser) charges listed on the Service Fee Schedule. (1) Scope of Service. At Customer request, Contractor will provide Roll -out Service for Refuse Carts. (2) Without charge / with surcharge. (i) Without charge. Contractor will provide Roll -out Service to the Elderly or Handicapped individual, if Customer certifies that no able- bodied person resides at the Customer's premise, which certification Contractor may confirm; (ii) With surcharge. Contractor will provide Roll -out Service to any Customer who does not meet the preceding listed criteria for the surcharge listed on the Contractor Service Fee Schedule. 4-4.02 Collection in Dumpsters or Compactors. a. Residential, Commercial or Multifamily Collection. Beginning on the Collection Commencement Date, Contractor will provide all Customers whose Residential Premises are located outside the City of Kodiak (except COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK b. Dumpster Options 5 7 Customers for whom Contractor provides Roll -offs under 6 -6.02) with Residential Roll Offs or Dumpsters. Contractor will Collect all Refuse discarded in those Residential Roll Offs or Dumpsters weekly, OF on the same Regularly Scheduled Collection Day(s) or other days agreed to between Contractor and Customer. Beginning on the Collection Commencement Date, Contractor will provide all Customers having Commercial or Multifamily Premises with Dumpsters. Contractor will Collect all Refuse discarded in those Dumpsters at least weekly, or on additional days determined by Contractor in its sole discretion, on the same Regularly Scheduled Collection Day(s). (1) Default Service at Commercial and Multi- family Premises: 2.0 Cubic Yard capacity Dumpster. Contractor will provide each Commercial Premise and Multi- family Premise with one 2.0 Cubic Yard capacity Dumpster to be Collected once weekly for the charge listed on the Service Fee Schedule, except in the following circumstances: (i) the owner or occupant of that Premise directs Contractor to provide the following alternative Containers: A. a different capacity of Dumpster or frequency of Collection undef or B. one or more Carts (ii) the Contractor determines in its sole discretion, that there is insufficient room at a Commercial Set -out Site to place or safely Collect one or more Dumpsters for each Customer using that Commercial Set -out Site, in which circumstance the Contractor will take the following actions, in its sole discretion: A. provide one or more Carts in the capacity and number that each Customer needs to store its discarded Refuse pending Collection, or B. allow one or more Customers to share a Dumpster. Contractor will provide locks for any Dumpster promptly upon Customer request. (2) Service at Residential Premises outside the City: Contractor will provide Residential Customers who receive Collection Service in Dumpsters with Dumpsters having capacity determined by Contractor in its sole discretion, sufficient to contain Refuse discarded by Residential Customers whose Residential Premises are outside the City of Kodiak, for the charge listed on the Service Fee Schedule (Residential Roll - off/Dumpster). c. Larger / smaller Dumpsters, more / less frequent Collection. At a —lster Custem or'r KIB's request, Contractor will provide Dumpsters in COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK alternative number and Collection frequency options offered on the Service Fee Schedule few d. Compactors. Contractor is not obligated to provide a Compactor to any Customer. However, on request of the owner or occupant of a Commercial or Multi- family Premise, Contactor will Collect all Refuse placed inside each Compactor at the frequency requested by that Customer and for the charge listed on the Service Fee Schedule. 4 -4.03 On -call, Monthly Bulky Items Collection. a. Driver report / MB request. When Collecting any Refuse, Contractor's drivers must immediately report to Contractor any Bulky Item he or she observes Discarded at a Dumpster Set -out Site. b. On -call Collection Service and Charges. Within 3 days of Customer or MB request, Contractor will Collect up to 4 X 5 X 6 cubic feet of Bulky Items that are Discarded at a Residential Set -out Site for the surcharge listed on the Contractor Service Fee Schedule. c. Diversion Program. Contractor will use Reasonable Business Efforts to Divert all Bulky Items that it Collects. For example, Contractor might cooperate with a thrift store to pick up or accept Contractor's delivery of furniture, or deliver appliances for metal recovery. Contactor will transport and deliver Bulky Items it does not divert to a facility approved by MB. 4 -4.04 Emergency Services. a. Nature of emergency services. Within 24 hours of oral notice by MB, followed as soon as practicable by written notice, Contractor will provide emergency services beyond the scope of Contract Services at the times and to the extent directed by MB, including providing vehicles, drivers and other equipment and personnel to cleanup Solid Waste and other debris consequent upon natural disasters such as earthquakes, storms, floods, riots and civil disturbances, for which Contractor will be compensated Contractor's Reimbursement Costs. b. Reporting. Contractor will cooperate with MB, the State, and federal officials in filing information related to a regional, state or federal declared state of emergency or disaster as to which Contractor has provided services under this Section. c. Emergency Backup Service Plan. Contractor will develop an emergency backup service plan in form satisfactory to MB and implement that plan if, due to Uncontrollable Circumstances or for any reason whatsoever, Contractor fails, refuses, or is unable for a period of 48 hours to collect and/or at any time to transport Solid Waste or any portion thereof to the applicable Solid Waste Management Facility and MB Manager determines there is danger to the public health, safety, or welfare. 4 -4.09 Mandatory Service Notice. Within 7 Service Days after receiving notice (based on Contractor's drivers' observations, information and belief or otherwise) that a formerly COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK unoccupied Premise becomes occupied or the Customer occupying the Premises have changed, Contractor will give written notice to the owner or occupant of that Premises that Service is required unless Contractor has already received a request for Service at that Premise or MB revokes provisions of the MB Code requiring mandatory Service. 4 -14.01 Compensatory damages. Contractor will pay MB the following Reimbursement Costs: (1) for enforcing any Performance Obligation to deliver Refuse to MB Landfill or Solid Waste to any other approved Solid Waste Management Facility, and (2) following a breach of that Performance Obligation, to monitor Contractor's Vehicles routes. ATTACHMENT 5: FUTURE PROGRAM CONSIDERATION: RECYCLABLES COLLECTION AND PROCESSING . 5 -5.01 MB Recyclables Program Specifications. In addition to any other changes in Performance Obligations implemented under and subject to the protocol in Article 12, KIB may direct Contractor to implement a recycling program. MB may prescribe the scope of recycling services, performance specifications and performance standards. MB will request Contractor to submit a proposal to implement MB's recycling program under Article 12 before requesting any other Person to submit a proposal or negotiating with any other Person. However, if MB and Contractor do not reach agreement by the end of the period specified in Article 12, MB may take either of the actions permitted under 12.02. ATTACHMENT 6: DROP BOX COLLECTION AND TRANSPORTATION. 6 -6.01 On -call Temporary Dumpster and Roll -off Service. a. Container delivery. Upon a Customer request, Contractor will deliver a 4 -Cubic Yard Dumpster or Roll -Off Container in any capacity provided on the Service Fee Schedule at the following times: (1) on the same Service Day if a Customer requests Service before 10 a.m. on that Service Day; (2) on the next Service Day if the Customer requests Service after 10 a.m. but before 4:00 p.m. on a Service Day, and (3) within two Service Days, if the Customer requests Service after 4:00 p.m. on a Service Day. b. Collection. Beginning on the Collection Commencement Date, Contractor will Collect all Refuse and C &D Debris in a 4 -yard Dumpster or Roll -off Container at the frequency requested by the Customer for the corresponding charges listed on the Service Fee Schedule. c. Container pick up. Contractor will pick up that 4 -Cubic Yard Dumpster or Roll -off Container within 2 Service Days of a Customer's request or other time agreed to between Contractor and Customer. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK d. Delivery to MB Landfill. If Contractor cannot divert C &D Debris from disposal using Reasonable Business Efforts (for example, recovering metal for reuse), it will deliver it to KIB Landfill, subject to the same obligations that Contractor has with respect to Refuse under Attachment 8. (For example, as of the Contract Commencement Date, Contractor cannot deliver C &D Debris to KIB Landfill on windy days when directed by KIB.) 6 -6.02 Weekly Residential Roll -off Service. Beginning on the Collection Commencement Date, Contractor will provide Customers whose Residential Premises are in areas known colloquially as: Bells Flats, Chiniak and Pasagshak (and other areas as identified by the KIB Representative from time to time in Notice to Contractor), with Roll -offs or Dumpsters. Collect Contractor will Collect Refuse discarded in those Roll Offs weekly, on the same Regularly Scheduled Collection Date. 6 -6.03 Roll -Off Container at MB Landfill. a. Container delivery and replacement. Beginning on the Commencement Date, Contractor will deliver a 4 -Cubic Yard Dumpster or Roll -Off Container in any capacity provided on the Service Fee Schedule, as requested by MB, to the location specified by MB at the MB Landfill. Contractor will replace that Dumpster or Roll -off Container with another Dumpster or Roll -Off Container of any other capacity provided on the Service Fee Schedule, within two Service Days of MB request. Contractor will provide KIB with the Service prescribed in Section 7 -7.08 Containers (including repair and maintenance), as if MB were a Customer. b. Collection. Beginning on the Collection Commencement Date, Contractor will Collect all Solid Waste in the Roll -off or Dumpster at the MB Landfill at the frequency agreed to by MB and the Contractor, without charge to KIB, and dispose of it at the MB Landfill (and pay MB disposal fee). c. Payment by Customers. (1) Mandatory Service charges. If anyone notifies Contractor in writing that he or she wishes to personally store, collect, transport and dispose of Solid Waste generated on that person's Premises, (referred to as "self- haul "), Contractor may nevertheless charge that person a Contractor Service Fee commensurate with the gallon equivalent (32, 64 or 96 gallons) of Solid Waste that the self -haul Customer discards at the Dumpster or Roll -off Container located at KIB Landfill, as estimated by a MB employee. 60 (2) Contractor acknowledges that Contractor is authorized under this Agreement to charge the owner or occupant of a Premises a Service Fee, regardless of whether or COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK () I not that owner or occupant self -hauls Solid Waste and discards it in the Dumpster and Roll -Off Container at MB landfill, or utilizes Services at Customer's Premises. Therefore Contractor acknowledges that it is compensated for providing Service under this Section even though it does not charge MB. ATTACHMENT 7: GENERAL COLLECTION PERFORMANCE OBLIGATIONS AND STANDARDS. 7 -7.01 Missed Pickups and Other Complaints. a. Corrective action. (1) Missed Pickups etc. Absent Contract Service Exceptions, on the next Contract Service Day following telephonic or other notice to Contractor, Contractor will Collect without charge any Container that Contractor should have Collected, delivered, exchanged or repaired but did not Collect, deliver, exchange or repair. If Contractor does not timely provide the Contract Service, MB may provide the Contract Service itself or through a third party and Contractor will reimburse MB's Reimbursement Costs thereof. (2) Other Complaints. Contractor will respond to all Customer inquiries and complaints (including any inquiry or complaint left with the telephone answering service) within 24 hours following notice to Contractor and handle complaints substantially as required by the Customer Complaint Protocol. (3) No referral to MB. Contractor will not refer or forward any Customer to MB for resolution of complaints or answers to inquiries unless the Customer insists, in which event Contractor will refer the Customer to the MB Representative. (4) Employee Training. Contractor will train each of its Customer service employees to follow the Customer Complaint Protocol upon starting employment and periodically thereafter. b. Customer Complaint Protocol. Contractor will provide MB with a copy of the Customer Complaint Protocol in form satisfactory to MB. c. Records. Contractor will maintain a daily written record of every inquiry and complaint received by Contractor, including information required by MB, and provide MB with a copy of those inquiries and complaints by the 15 day of each month. d. MB access to records. Contractor will allow MB access to complaint records at Contractor Office during Contractor Office Hours. Contractor will provide copies of any Customer complaints and the resolution of those complaints to MB within two hours of MB request, and other Records, promptly. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK e. Reimbursement of MB Cost. Contractor will reimburse KIB's Reimbursement Costs incurred by a MB Related Party or Parties for the following: (1) more than 2 hours in the aggregate resolving any one Customer's complaint or answering that one Customer's question, or (2) more than 1 hour in any work week (MB Business Days generally Monday through Friday) resolving all Customers' complaints or answering all Customer's questions. KIB's invoice for KIB's Reimbursement Costs must indicate the following: (i) the name and address of the Customer, (ii) nature of complaint or inquiry, (iii) amount of time spent by MB employee or other Person, (iv) hourly fees for MB employees or fees of other Person, and (v) cost of materials or other disbursements, including phone and postage costs, required to resolve the complaint or answer the question. 7 -7.02 Unpermitted Waste Screening. a. Unpermitted Waste Screening Protocol. Contractor will implement the Unpermitted Waste Screening Protocol in compliance with Applicable Law and in a manner satisfactory to MB. b. Inadvertent Delivery of Unpermitted Waste. If Contractor inadvertently delivers Unpermitted Waste to a Solid Waste Management Facility, Contractor will use its best efforts to identify the Customer that discarded the Unpermitted Waste and cooperate with the Solid Waste Management Facility in investigations. Contractor will contact any identified Customer and provide that Customer with information on safe disposal of Unpermitted Waste. 7 -7.03 Contract Service Exceptions. a. Collection Exception. Contractor is not obligated to Collect any Solid Waste in event of any Contract Service Exception. b. Non - Collection Notice. If Contractor does not Collect any Solid Waste in event of a Contract Service Exception, Contractor must complete and leave a Non - Collection Notice securely attached to a Container at or near the Set -out Site (except in the event of unsafe conditions, when Contractor will use best efforts to immediately notify the Customer of the unsafe condition, including leaving a Non - Collection Notice on the door of the Premise (if safe) or telephoning Customer.) (1) A Non - Collection Notice with respect to Solid Waste that is not properly placed inside Containers, must contain the following information: (i) reminder that the Customer must place Solid Waste (except Bulky Items) in a closed Container; (� 2 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (ii) notice that Contractor is authorized to charge the Customer the surcharge listed on the Service Fee Schedule each time the Customer sets out a Container that is filled above the Container rim and will not fully close; (iii) instructions on how the Customer can subscribe to additional Refuse Containers (including any additional surcharges), or request on -call Collection of Bulky Items. (2) A Non - Collection Notice with respect to Unpermitted Waste (such as hazardous waste) or unsafe materials must describe where Customer can dispose of the Unpermitted Waste or those materials, such as at KIB Landfill or other location designated by MB. Promptly upon MB request, Contractor will inform MB of each Customer to which Contractor gave a Non - Collection Notice. 7 -7.04 Transition and Customer Education. a. Contractor Transition. (1) Necessity for Smooth Transition. Contractor acknowledges that it is of the utmost importance to MB that the transition from solid waste services provided before the Contract Commencement Date to Contract Services will proceed smoothly to the satisfaction of Customers, including the following: (i) timely Collection at each Customer's Premise, (ii) accurate billing of Customers for Customer Special Service Surcharges, (iii) distributing Refuse Carts or other Carts, as applicable, (iv) changing pickup days or times, (v) changing the scope of services or program specifications, and (vi) responding to Customer complaints and inquires. (2) Transition Plan contents. Contractor will implement the Transition Plan in a manner satisfactory to MB. b. Compliance with Transition Plan. Contractor will timely and fully implement its Transition Plan. Contractor will direct employees to work overtime and/or add extra shifts, as necessary, without Contractor Service Fee increase, to assure compliance with the Plan. Contractor will submit to MB written status reports in form and content satisfactory to MB on a weekly basis, commencing no later than the Friday of the week following the Contract Commencement Date. On the first MB Business Day each week and promptly upon MB request, Contractor will meet with MB to review status of Plan implementation. 7 -7.05 Other Special Customer Services. Upon Customer request, Contractor may provide special services in addition to prescribed Contract Services following approval by MB based on the following information: (1) scope of services, and (2) any surcharge. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 7 -7.06 Contract Service Assets. a. Operation and maintenance yard; Contractor Office. b. Use and possession; acquisition. Contractor will either own each Contract Service Asset or ensure that any lease, financing documentation, rents or purchases by installment or conditional sale agreement with respect to each Contract Service Asset allows MB use and possession of the Contract Service Asset in order to realize KIB's rights to use and possession and, with respect to Carts, acquisition or purchase. Any Contract Service Asset Document, will: (1) allow the Guarantor to assume Contractor's obligations and to continue use of Contract Service Assets in performing Contract Services; (2) allow KIB or its designee to assume Contractor's obligations and to continue use of Contract Service Assets in performing Contract Services. Contactor will provide a copy of the Contract Service Asset Document upon MB request. d. Inventory. Contractor will prepare a preliminary inventory of Refuse Carts that Contractor will acquire or supply as required by the Transition Plan as Contractor Documentation. In its next Monthly Report following delivery of any Cart as required by the Transition Plan, Contractor will complete and finalize the inventory. In each Annual Report following completion of the Transition Plan or at any time promptly upon the direction of MB, Contractor will update the inventory to reflect acquisition or replacement of Refuse Carts, accompanied by a representation and warranty signed by Contractor that all Refuse Carts meet specifications. 7 -7.07 Customer Billing; Bill & MB Fee Collection. a. Customer service fees. Contractor will provide billing and bill collection services at the time and in the manner satisfactory to MB, in amounts equal to the Contractor Service Fee (subject to any Senior Discount), Adjusted Tonnage Amount and any other fees directed by KIB. 6.1 (1) Operation and maintenance yard; Contractor Office. Contractor will secure possession and use of operation and maintenance yard and Contractor Office located on publicly maintained roads. (2) MB access. MB and designees of MB may enter Contractor's operation and maintenance facilities or Contractor Office during Contractor Office Hours on 2 hours prior telephone, E -mail or facsimile notice, and investigate, observe, inspect and review Contractor's operations and Contract Service Assets. Contractor will make available a management representative or other authorized person to conduct each MB representative through facilities. This right does not limit MB's right to inspect Vehicles. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK b. MB fees. (1) Amount. On behalf of MB, Contractor will charge Customers a fee or fees in the amount directed by MB. Contractor will not separately itemize that fee or fees on invoices to Customers or any other correspondence with Customers, unless authorized by MB. (2) Recording Fees. Upon receipt of any Customer's payment of fees for Contract Service, Contractor will simultaneously record receipt of MB's fees in separate accounts within Contractor's detail general ledger. Those fees belong to MB and not to Contractor. (3) 7 -7.08 Containers. Remitting Fees. Contractor will remit to MB amounts equal to MB's fees at the time directed by MB. Contractor may retain the remaining amounts received from Customers as compensation for fully and timely satisfying Contractor's obligations under this Agreement. a. Providing Containers Contractor is not obligated to provide a Customer with a Compactor. Contractor will provide additional and replacement Containers (other than Compactors) as necessary to ensure that Customer always has a Container. (1) New Carts and New or Used Dumpsters. Contractor will provide the following Containers no later than the date provided in Contractor Transition Plan: (i) new Carts having the specifications described in Contractor Documentation as approved by MB (including bear Carts, a cart designed to be resistant to opening by bears, set out at Premises located outside the City of Kodiak), that can be recycled, and with warranty of at least one year's duration; and (ii) new Dumpsters, having the specifications described in Contractor Documentation as approved by MB. (2) New or Used Roll -off Containers. Contractor will provide Roll -off Containers no later than the date provided in the Contractor Transition Plan. Contractor may provide Roll -off Containers that are not new if, in the sole judgment of the MB Representative, they are in good repair and appearance. (2) Container Inventory. As part of Contactor Documentation, Contractor will provide MB with a copy of Service Asset Documents related to Container acquisition and financing and Container inventory promptly upon Container acquisition and thereafter promptly at MB request. Contractor will update the Service Asset Documents and Container inventory in each Annual Report and within 10 days of MB request. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK b. Changes in Service; Repair or Replacement. Contractor will exchange, remove and/or deliver Containers at the time directed by MB and surcharges, if any, listed on the Service Fee Table, including for the following: (1) changes in Service, (2) repair of damaged Containers, and (3) replacement of damaged or stolen Containers. c. Locks. Within one week of Customer direction, Contractor will provide locks on a Dumpster for the surcharges listed on the Contractor Service Fee Schedule. 7 -7.09 Customer Service Subscription and Bill of Rights. a. Form and Content. Before commencing new Contract Service or changing Contract Service levels or frequency, Contractor will provide each Customer with a written Customer Service Subscription. Contractor may include a waiver of damage liability and/or Customer indemnity in connection with Collection on a Customer's private driveway or pavement in form and content satisfactory to KIB. b. Service Requests. Contractor will accept Customer's requests for commencement of or changes in regular or special Service by phone, mail, fax or E -mail. c. Copies. Contractor will provide MB with a copy of any Customer Service Subscription promptly upon request. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK SECTION BREACH LIQUIDATED DAMAGE $250 per each failure / per Customer / per day; as evidenced to satisfaction of KIB, including oral or written communication with Customer and review of that Customer's complaint log 4 -4.01 failure to provide Contract Services for any Customer (including missed pickups of Carts) 4 -4.01 failure to return emptied Container to Set -out Site $100 per failure / per Container / per Collection 7 -7.08 failure to deliver, repair, replace or pick- up Carts, Dumpsters or Roll -offs $100 per failure / per Customer / per day 9.01 / MB Code failure to timely compensate Customer, or to repair or replace damaged pavements, utilities or Customer property $300 per failure / per Customer / per day 9.01 / MB Code failure to clean up litter, spills, leaks $100 per incident / per day 9.01 / MB Code, 10.01 failure to provide MB access to or copies of Records (including Routing) $100/$200/$300/$400 if not provided within 7 / 14 / 21 / 28 days, of MB request; and $500 for each week thereafter 4 -4.04 failure to timely return a MB call in event of emergency $500 7 -7.01 / Customer Complaint Protocol failure to record a complaint $100 per failure 7 -7.01 / Customer Complaint Protocol failure to timely respond and resolve a Customer complaint $250 per failure / per Customer / per day 9.01 / MB Code failure to observe Collection hours $250 per failure / per Customer 9.01 / MB Code failure to observe Contractor Office Hours $250 per failure / per day 7 -14.01 Liquidated Damages. Liquidated Damages in the chart below apply to each Breach established or substantiated to satisfaction of MB, for each day (the first occurrence and continuation on successive days). For example, failure to correct a missed pickup would result in liquidated damages on the day of the scheduled pickup and each following day until corrected. KIB's assessment of Liquidated Damages for the following Breaches does not preclude MB from enforcing the MB Code for corresponding Violations. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK 9.01 / KIB Code failure to disclose or correctly describe Service options to any Customer $100 per failure / per Customer 9.01 / MB Code driving overweight vehicles $500 per incident 17.10 discourteous behavior by Contractor's employees or Subcontractors reported by or complained of by Customers to Contractor or MB $300 per report or complaint / per Customer 9.01 / KIB Code noise emission in excess of prescribed levels $300 per Vehicle / per day Vehicle is used to provide Collection 9.01 / KIB Code failure to maintain Contractor's phone number on Vehicles $200 per failure / per Vehicle / per day Vehicle is in use to Collect Solid Waste 9.01 / MB Code failure to clean up litter $100 per failure / per spill location / per day 9.01 / MB Code failure to cover materials in open Collection Vehicles $100 per failure / per truck / per route (first pick -up until delivery to Solid Waste Management Facility 6 -6.01 e, [possibly Attachment 5, if recycling program implemented) failure to deliver any Solid Waste to a facility approved by MB $1,000 per load for first failure; $5,000 per load for each subsequent failure 7 -7.07 KIB Code charging any Customer in excess of the scheduled Service Fee (such as the incorrect $ /Cart ) $500 per inaccurate invoice / per Customer 9.01 / MB Code failure to submit any general Customer correspondence, promotional material, news releases, public education or community relations materials to MB for MB review $500 per failure / per Customer plus $100 per day prior to retraction or correction of misinformation identified by MB COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK ATTACHMENT 8: REFUSE DISPOSAL. 8 -1.01 Transportation to KIB Landfill. a. MB Landfill. Contractor will transport and deliver all Refuse that it Collects to MB Landfill. Contractor will coordinate that delivery with Holiday Collection schedules and closures for repair and maintenance. Contractor will keep Refuse that it Collects at Residential Premises, whether in Carts or Dumpsters, separate from Refuse that it Collects at Commercial or Multi- Family Premises and will not commingle that Refuse in one Vehicle. b. Compliance and cooperation. Contractor will ensure that its vehicles can pass in and out of the door at the baler at MB Landfill. Contractor will cooperate with MB Landfill operator and comply with all rules in effect at the MB Landfill, including the following: (1) delivering Refuse only at the times and on the days specified by MB; (2) following directions to unload Collection Vehicles in designated areas, (3) accommodating operations and maintenance activities, and (4) complying with Unpermitted Waste exclusion programs. c. Disposal Fees. Contractor will pay Disposal costs, including Disposal of Refuse that Contractor Collects from Roll Offs/Dumpsters located at the MB landfill. 8 -1.02 Limited Disposal Defense and Indemnification. a. Conduct Included. Contractor will do the following: (1) indemnify, (2) defend with counsel approved by MB, (3) release, and (4) hold harmless KIB and MB's Related Parties from and against all Liabilities and Losses paid, incurred or suffered by, or asserted against, MB or KIB's Related Parties, but only to the extent that those Liabilities and Losses are caused by the following: 69 (i) Contractor negligence or misconduct. The wrongful, willful or negligent act, error or omission, or the misconduct of Contractor; (ii) Non - Customer materials. The collection, transporting, delivery, recycling, processing, composting, disposal or other handling by Contractor of Unpermitted Waste that Contractor Collects outside the Contract Service Area or from Persons other than Customers; (iii) Failure to Comply with Unpermitted Waste Screening Protocol. The failure of Contractor to train its employees as required by Applicable Law or the Unpermitted Waste Screening Protocol, whichever is more stringent; (iv) Contractor - identified Unpermitted Waste. The improper or negligent collection, handling, delivery, processing, recycling, composting or disposal by Contractor of Unpermitted Waste that Contractor inadvertently collects but that is subsequently identified as Unpermitted Waste. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK MB acknowledges that the mere presence of hazardous waste in Refuse will not constitute negligence or in and of itself create any liability on the part of Contractor absent any of the circumstances described in items (i) through (iv) of this subsection. b. MB Sole Negligence Excluded. Contractor is not required to reimburse or indemnify MB to the extent any Liabilities or Losses are due to the sole negligence of MB with respect to Contract Services. c. Indemnity With Respect to Contract Services Only. Contractor's Indemnity described in this Section is limited to Liabilities and Losses resulting from and after the Contract Commencement Date. d. Statutory Agreement. Contractor's Indemnity under this Section is intended to operate as an agreement under 42 U.S.C. Section 9607(e) and any corresponding Applicable Law provisions of State, to insure, release, protect, hold harmless and indemnify MB from Liabilities and Losses under this Section. Contractor's Indemnity under this Section includes the specific actions or inactions of Contractor described in items numbered (i) - (ii) consecutively of Subsection a (for example, a driver accepting a Customer bribe and illegally disposing of Unpermitted Waste that upon identification thereof must be segregated and transported as required by Applicable Law). 70 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Service Description Contract Section Contractor Service Fee (monthly) On call Collection of Bulky Waste Attachment 4 $25.00 per call (not item) plus Direct Cost of Disposal Rollout Service for Non- eligible Customers — Initial 30' or fraction thereof Attachment 4- 4.01d $7.36 Rollout Service for Non- eligible Customers — Each additional 30' of fraction thereof Attachment 4- 4.01d $6.13 Beginning 7 months after Collection Commencement Date, replacement of Cart in excess of once / calendar year Attachment 7- 7.04b $25.00 plus Direct Cost of Cart Capacity / # of Refuse Carts Monthly Service Fee Senior Discount 32 gallon $28.90 $21.90 64 gallon $34.09 $27.09 96 gallon $38.31 $31.31 Each additional 32 gallon $28.90 Each additional 64 gallon $34.09 Each additional 96 gallon $38.31 Residential Roll- off/Dumpster $38.31 $31.31 Additional Set -Out Fee $6.87 ATTACHMENT 13.01: CONTRACTOR SERVICE FEE SCHEDULE. Contractor Service Fees adopted by KIB as of the Contract Commencement Date are appended for convenience of the Parties to this Attachment. Under Article 13 and Applicable Law, KIB may amend these Fees, and the Fees will automatically be deemed to apply to this Contract without any further action. Contractor is deemed to have knowledge of Applicable Law, including MB resolutions and ordinances. However, for convenience of administering this Contract, the Parties may from time to time amend this Attachment by attaching the most recent dated current Contractor Service Fee resolution or ordinance to this Attachment. In addition, if Customer requests Service at a Receptacle capacity and/or Collection frequency not provided in the Contractor Service Fees adopted by MB, Contractor may charge that Fee following MB approval and Customer agreement. Contractor Service Fee for Carts Section / Attachment 4 71 Contractor Service Fee Surcharges for its Service COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Bear lock for Customers in portion of Contract Service Area not required to have bear locks Pickups per Week / Contractor Service Fee (monthly) One -time difference between Direct Cost of Cart with / without bear lock Drive in Service — First 100' 3 $18.40 Drive in Service — 100' — 300' 2 yard $30.67 Drive in Service — More than 300' $530.79 Individually assessed Sargent Greek Residential Roll -Off / Dumpster Clean -up Costs 2.6 yard S-3768 $2.00 Dumpster Size Pickups per Week / Contractor Service Fee (monthly) 1 2 3 4 5 2 yard $176.93 $353.86 $530.79 $707.72 $884.65 2.6 yard $222.72 $445.44 $668.17 $890.89 $1,113.61 3 yard $281.40 $562.79 $844.19 $1,125.58 $1,406.98 3.6 yard $302.24 $604.48 $906.73 $1,208.97 $1,511.21 4 yard $355.11 $710.22 $1,065.33 $1,402.44 $1,775.55 5 yard $357.55 $715.10 $1,072.65 $1,430.20 $1,787.75 5.5 yard $371.76 $743.52 $1,115.28 $1,487.40 $1,858.80 6 yard $424.94 $849.88 $1,274.82 $1,699.76 $2,124.70 8 yard $531.18 $1,062.36 $1,593.54 $2,124.72 $2,655.90 *Contractor Service Fee for multiple Dumpsters is equal to the above scheduled amounts multiplied by the number of Dumpsters. 72 Contractor Service Fee for Dumpsters (Section / Attachment 4) COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Service Description Agreement Section Amount Change in size and number of Dumpster more frequently than once per Contract Year Attachment 4- 4.02b2 $20.00 per exchange per Dumpster Locks on Dumpster Attachment 4- 4.402 Additional $5.00 per month Dumpster Size 10 -20 yard 30 -40 yard 10 -20 yard Compactor 30 -40 yard Compactor $148.50 plus disposal $198.00 plus disposal $148.50 plus disposal plus disconnect fee - $21.25 $198.00 plus disposal plus disconnect fee - $21.25 Contractor Service Fee for Drop Box Service (Section / Attachment 4) Contractor Service Fee (Per Ti Contractor Service Fee Surcharges for Dumpsters COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK ATTACHMENT 20.01: DEFINITIONS. Affiliate means a Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, Contractor. For the purpose of this definition, "control" has the meaning provided in Rule 144 of the Securities Act of 1993. Affiliate Parent means an Affiliate that, directly or indirectly, through one or more intermediaries, controls Contractor. Annual Report means the Report required under Section 10.02 in form and content satisfactory to KIB. Applicable Law means any or all of the following enacted, adopted, promulgated, issued, ruled, ordered, determined or otherwise made by any Regulatory Authority that apply to or govern Contract Services or the performance of the Parties' obligations under this Contract: (1) laws, statutes, (2) rules, regulations, (3) guidelines, (4) Permits, (5) actions, determinations, orders, or (6) other requirements, including Applicable Law concerning the following: (7) health, (8) safety, (9) fire, (10) labor relations, (11) mitigation monitoring plans, (12) building codes, (13) zoning, (14) non - discrimination, (15) Vehicles: such as: (i) air emissions (smog checks); tires; documentation through maintenance log or otherwise of a safety compliance report; Vehicle highway lighting, flashing and warning lights, clearance lights, and warning flags; registration; weight limits; cleaning; enclosure / water -tight beds; (ii) The appropriate class of drivers' licenses issued by the State Department of Motor Vehicles; (iii) any State laws relating to operating equipment construction, safety, and parking and identification, (16) Carts: such as: (i) maintenance and placement of Carts; (ii) placing Contractor's name and telephone number on Receptacle; COLLECTION SERVICES CONTRACT ( Kodiak Island Borough, AK (17) Labor: (i) Drug and alcohol testing; (ii) The Occupational Safety and Health Act, (29 U.S.C. §651 et seq.), including the Solid Waste Disposal Facility Criteria promulgated by the U.S. EPA on October 9, 1991 (40 C.F.R., Parts 257 and 258); and corresponding State requirements; (iii) Immigration Reform and Control Act of 1986 (PL.99 -603); (18) Environmental Protection: (i) CERCLA; (ii) RCRA; (iii) Clean Air Act, (42 U.S.C. §1351 et seq., 42 U.S.C. §7401 -7642) and Clean Water Act, and; (iv) corresponding State requirements; (v) Emergency Planning and Community Right to Know Act, (42 U.S.C. §11001 et seq.); (vi) regulations governing the recovery of ozone - depleting refrigerants during the Disposal of air conditioning or refrigeration equipment, including 40 C.F.R. Part 82; (vii) any wash -down requirements for containers, trucks or facilities, (19) MB Code, (20) Miscellaneous: (i) Civil Rights Act of 1964 (Sub chapter VI or Chapter 21 of Title 42); (ii) Customer's privacy rights. Reference to Applicable Law includes amendments and supplements to or replacement, restatement or recodification occurring after the Contract Commencement Date. Base Service Level is described on the Contractor Service Fee Schedule. Bear Cart means a cart designed to be resistant to opening by bears. Breach means Contactor's failure to fully and timely meet any Performance Obligation. Bulky Item(s) means any large item of Solid Waste that can be safely lifted by two individuals using a dolly, generated at Residential Premises and discarded at Residential Set -out Sites, such as the following: (1) furniture, including metal desks and storage cabinets, (2) pianos and organs, (3) televisions, (4) large appliances, including washers, driers, refrigerators, freezers, dishwashers and stoves, (5) toys, bikes and dismantled swing sets, (6) lawn mowers and snow blowers with no gas or oil in them, up to 4 auto or pickup tires per Customer each calendar month, with rims removed, COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK (7) any item (other than lumber) that can be cut or broken down meeting the following requirements: (i) not longer than 4 feet in length, (ii) weighing no more than 70 pounds. Bulky Items does not mean the following: (1) material generated at non - Residential Premises, including commercial business operations, (2) bundled Yard Waste, branches, (3) sod, soil and rock, (4) broken concrete and asphalt, (5) brick, block and stone, (6) railroad ties or similar type of retaining wall timbers, (7) remodeling debris, including shingles, (8) carpeting, (9) sinks, concrete laundry tubs and cast iron plumbing fixtures, (10) windows and doors, (11) lumber, (12) animal waste, including all excrement from domestic animals and fowl, and all hay, straw or other materials that have been used for animals' or fowls' bedding, (13) liquids, including paint, (14) hazardous waste, including household hazardous waste, (15) fuel oil tanks, (16) any automotive parts (including vehicle batteries and tires). C &D Debris means any Solid Waste discarded in Dumpsters or Roll -off Containers that Contractor must Collect under Section 6 -6.01, such as the following: (1) bundled Yard Waste, branches, (2) railroad ties or similar type of retaining wall timbers, (3) remodeling debris, including shingles, (4) carpeting, (5) sinks, concrete laundry tubs and cast iron plumbing fixtures, (6) windows and doors, (7) lumber. Calendar Year means a period of 12 months of 365 or 366 consecutive days beginning January 1 and ending December 31. (Compare "Contract Year") Cart means a wheeled receptacle that can be emptied by either semi- or fully- automated vehicles. Change in Law means the following changes occurring after the Contract Commencement Date: 76 (1) the adoption, promulgation, repeal, modification, amendment or other change in Applicable Law or change in judicial or administrative interpretation thereof occurring, other than: COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Collect, Collection or Collecting other form thereof means pick -up and removal of discarded Solid Waste required under this Contract, including Sections 4 -4.01 (from Carts), 4.02 (from Dumpsters) and 4.03 (Bulky Items), 6 -6.01 (4 -yard Dumpsters and Roll -Off Containers) and 6- 6.02 (Roll -off Containers). Collection Commencement Date means the date (July 1, 2010) on which Contractor must begin Collecting solid waste at Customer Set -out Sites. (Compare "Contract Commencement Date".): (1) Attachment 4 -4.03 (residential Carts), (2) 4 -4.04 (commercial Dumpsters), (3) 6 -6.01 (on -call Roll -Off containers), and (4) 6 -6.02 (permanent Roll -off Containers). Collection Hours means the time during which Contractor can Collect Solid Waste under the MB Code. (i) laws with respect to taxes based on or measured by net income, or (ii) any unincorporated business, payroll or Contract taxes levied by any tax governmental authority (other than any taxes levied by MB that are obligations of Contractor and not merely fees that Contractor must collect on behalf of KIB), or (iii) employment taxes; or (2) any order or judgment issued by a Regulatory Authority that binds Contractor or has a material impact on Contract Service: (i) if the order or judgment is not also the result of the willful misconduct or negligent action or inaction of the Party relying thereon or of any third party for whom the Party relying thereon is directly responsible; and (ii) unless excused in writing from so doing by the other Party, the Party relying thereon will make or have made, or will cause or have caused to be made, Reasonable Business Efforts (such as retaining counsel) to contest the order or judgment (it being understood that contesting in good faith an order or judgment will not constitute or be construed as a willful misconduct or negligent action of that Party); or (3) the imposition by a Regulatory Authority of any new or different material conditions in connection with the issuance, renewal, or modification of any Permit; or (4) a Regulatory Authority's (i) failure to issue or renew any Permit, (ii) delay in issuing or renewing any Permit, or (iii) suspension, interruption or termination of, any Permit; provided the failure, delay, suspension or termination is not due to the willful misconduct or negligent action or inaction of the Party relying thereon or any third party for whom the Party relying thereon is directly responsible. COLLECTION SERVICES CONTRACT Kodiak Island Borough, AK Commercial describes Persons (such as Customers) or things (such as Carts, Premises or types of Solid Waste) in the Contract Service Area that are not Residential or Multi - family. Commercial Customer means a Customer who owns or occupies a Commercial Premise. Commercial Premise means each Premise containing that is not a Residential Premise or Multi- family premise, such as businesses. Compactor means a receptacle containing a ram that pushes and compresses waste into a container or bale. Compensatory Damages means "Compensatory Damages" described in Sections 14.01 and 14.05. Contract means this agreement, including the following: (1) all Attachments, (2) all Exhibits and (3) all appended documentation which Attachments, Exhibits and documentation are incorporated in this Contract by reference. Contract Commencement Date means the date eh May 1, 2010 in which this Contract is signed by Contractor and KIB. (Compare "Collection Commencement Date") Contract Manager means the following: (1) Contractor Representative (2) Contractor's officers (3) Contractor's directors, and (4) any individual in a Position of Influence. Contract Service means the MSW Management Services that Contractor must provide for Customers under this Contract, including Performance Obligations in the Attachments 4 (Collection in Carts, dumpsters or compactors), 5 (possible Collection of recyclables in the future), 6 (Collection in roll - offs), 7 (Collection specifications and standards; Customer billing and collection), and 8 (transportation to KIB landfill). (Compare "MSW Management Services") Contract Service Area means all land within the boundaries of KIB where Customer' s premises can be served by roads. Contract Service Asset Document means a document that encumbers or limits Contractor's interest in a Contract Service Asset or that evidences Contractor's ownership interest in the Contract Service Asset, such as: (1) lease - purchase agreement, (2) installment purchase agreement, 78 COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (3) (4) (5) financing statement, mortgage or other instrument establishing a security interest to or by Contractor, if requested by MB, documents related to Contractor's rights with respect to the Contractor Service Asset, such as Cart warranties, and if requested by MB, documents related to operation and maintenance of the Contractor Service Asset. Contract Service Assets means all property, both tangible and intangible (such as facility leases or equipment installment purchase agreements) used directly or indirectly in performing Contract Services, including the following: (1) vehicles, (2) receptacles, (3) operation / maintenance equipment and facilities, (4) administrative / office equipment (such as computer hardware and software, telephones /telefax) and offices. Contract Service Day means a weekday or Saturday on which Contractor must perform Contract Services, Holidays excepted. (Compare "day" and "KM Business Day".) Contract Service Exceptions means: (1) Solid Waste Not Proper Placed in Receptacles: discarded Solid Waste (other than any Bulky Item) is not placed inside a Receptacle. (2) Any Receptacle that weighs more than limits prescribed on Receptacle's manufacturer warranty or other documentation acceptable to MB and noted on the Receptacle. (3) Receptacle or Bulky Items Not Placed at Proper Set -out Site: a Receptacle is not discarded at the Set -out Site, or a Bulky Item or excess Refuse is not discarded at the Set -out Site under 4 -4.04. (4) Unsafe Condition: the Set -out Site is not safely accessible to Vehicles or Contractor's employees. (5) Unpermitted Waste or Unsafe Materials: Contractor observes Unpermitted Waste in a Receptacle or at the Set -out Site. Contractor means the following: (1) the Person named and signing the signature page of this Contract, (2) any transferee of that Person consented to by MB under Section 16.01 (3) for purposes of Indemnities, Contractor and Contractor's Related Parties. Contractor's actions and Performance Obligations include reference to any Subcontractor's actions under this Contract, as applicable, without specifying in each instance that Contractor must directly take those actions itself, or cause its Subcontractors to take those actions on Contractor's behalf. Contractor Documentation means documentation provided by Contractor to MB under this Contract in form and content satisfactory to MB, listed and collected in the Appendix. 7 O COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Contractor Office means Contractor's office located in KIB at the address listed in the Appendix. Contractor Office Hours means at least 8:00 a.m. to 5:00 p.m. Monday through Friday (Holidays excepted). (Compare "KIB Office Hours ") Contractor Payment Obligations means amounts Contactor owes to MB, including: (1) damages, including Liquidated Damages and Compensatory Damages; (2) reimbursements to MB, including KIB's Reimbursement Costs; (3) any other amounts provided in this Contract, such as costs of applying to courts for judicial construction of Contract Provisions as defined and under Section 20.05. Contractor Phone Hours are hours (excepting Holidays) between the following times: (1) 8:00 a.m. and 5:00 p.m., Monday through Friday, and (2) if Contractor provides Contract Services on Saturday, from 8:00 a.m. to noon on Saturdays. Contractor Representative means Contractor Representative named by Contractor under Section 17.07b and listed in Contractor Documentation. (Compare "KIB Representative") Contractor's Reimbursement Costs means Contractor's Direct Costs plus 10% thereof. (Compare "KIB's Reimbursement Costs.) Contractor's Related Parties means Contractor's employees, partners, officers, agents, Subcontractors, attorneys, consultants, licensees, invitees and Affiliates. Contractor's Related Parties are third party beneficiaries of provisions that reference them. (Compare "KIB 's Related Parties") Contractor Service Fee means the amount listed on the Contractor Service Fee Schedule. Contractor Service Fee Schedule means the schedule appended to Attachment 13.01. Contractor Transition Plan means the plan under Attachment 7 -7.06 in form and content satisfactory to MB. It is Contractor Documentation. Contract Year means each 12 -month period commencing July 1 and ending June 30, or with respect to less than 12 -month periods following execution, termination or execution of the Agreement, the portion of that 12 -month period. (Compare "Calendar Year ".) Criminal Activity means any of the following: (1) fraud or criminal felony offenses in connection with obtaining, attempting to obtain, procuring or performing a public or private agreement related to recyclables, yard waste, construction and demolition debris, garbage, refuse, or any other solid waste or MSW Management Services of any kind (including collection, hauling, transfer, processing, composting or disposal), including this Contract; COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (2) bribery or attempting to bribe a public officer or employee of a Regulatory Authority; or (3) embezzlement, extortion, racketeering, false claims, false statements, forgery, falsification or destruction of records, obstruction of justice, knowingly receiving stolen property, theft, or misprision (failure to disclose) of a felony; or (4) unlawful disposal of hazardous, designated or other waste; or (5) violation of the following: (i) securities or antitrust laws (such as laws relating to price - fixing, bid - rigging and sales and market allocation), and (ii) unfair and anti - competitive trade practice laws, including with respect to inflation of waste collection, hauling or disposal fees. Cubic Yard means 46,656 cubic inches. Customer or Customers means a Person who subscribes for Contract Services from Contractor. Customer Complaint Protocol means the protocol under Attachment 7 -7.01 in form and content satisfactory to KIB. It is Contractor Documentation. Customer Service Subscription means the service order form under Attachment 7 -7.09, in form and content satisfactory to KIB. It is Contractor Documentation. Day means a calendar day. (Compare "KIB Business Day" and "Contract Service Day".) Default means "Default" defined in Section 14.02. Direct Costs means the sum of the following: (1) payroll costs directly related to the performance, or management or supervision of any obligation under the provisions of this Contract, comprised of compensation and fringe benefits, including vacation, sick leave, holidays, retirement, workers' compensation insurance, federal and state unemployment taxes and all medical and health insurance benefits, plus (2) the costs of materials, services, direct rental costs and supplies, plus (3) travel and subsistence costs, plus (4) the reasonable costs of any payments to Subcontractors (with respect to Contractor) or contractors (with respect to MB) or third parties necessary to and in connection with Performance Obligations; plus (5) any other cost or expense which is direct or normally associated with a task performed; plus (6) reasonable litigation costs and expenses, including attorneys' fees (including the reasonable value of the services rendered by KIB Counsel's Office) investigation fees and expert witness fees. which Direct Costs are substantiated by: COLLECTION SERVICES CONTRACT Kodiak Island Borough, AK (7) a certificate signed by the principal financial officer of Contractor or an authorized representative of MB, as the case may be, (i) setting forth the amount of the cost and the reason why the cost is properly chargeable to MB or Contractor, as the case may be, and (ii) stating that the cost is an arm's length and competitive price, if there are competitive prices, for the service or materials supplied; and (8) if MB or Contractor requests, as the case may be, the additional back -up documentation to substantiate any Direct Cost, including invoices from suppliers, Subcontractors and contractors. Direct Costs excludes profit or return on investment. Disposal or Dispose or other form thereof means final deposition or destruction of Solid Waste. Diversion or Divert means activities that reduce or eliminate the amount of Solid Waste from disposal. Drive -in Service means when the contractor is required to leave the public right -of -way and enter a driveway, private road, or private property. Dumpster means a receptacle for discarded solid waste that has slots to allow pick -up by the forklifts, generally a metal box with lid also referred to as "bin ". Elderly or Handicapped means any Residential Customer who meets the following criteria: (1) has handicapped status recognized by the State Department of Motor Vehicles, or (2) is over 65 years old as evidenced by birth dates on driver's licenses, birth certificates, passports, green cards or other documentation issued by a Regulatory Authority, and (3) provides written representation that he or she is functionally unable to roll his or her Refuse Cart to the curb, and that there is no one else residing in that Customer's premises who is functionally able to roll that Refuse Cart to the curb. Goods or Services means goods or services used in providing Contract Services, including the following: (1) labor, (2) leases and subleases, (3) equipment, (4) supplies, (5) capital, (6) insurance, if the insurer is an Affiliate, (7) bonds or other credit support if the surety or other provider is an Affiliate; and (8) legal, risk management, general and administrative services. Guarantor means the Person executing the Guaranty. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Guaranty means the guaranty in substantially the form attached as Exhibit 11.04, as approved by KIB, signed by Guarantor. Herein, Hereof, Hereunder and variations mean "in this Contract ", "of this Contract ", "under this Contract "; "hereinbefore" and "hereinafter" mean before and after the Contract Commencement Date, respectively. Holidays means days on which KIB offices are closed for business to the public, comprised on the Contract Commencement Date of the following days: (1) New Year's Day, (2) Martin Luther King Day (3) President's Day (4) Seward's Day (5) Memorial Day, (6) Independence Day, (7) Labor Day, (8) Veteran's Day (9) Thanksgiving Day and the day after Thanksgiving and, (10) Christmas. Including or Include or variations thereof means "including without limitation, "including, but not limited to" and "including, at a minimum ". Indemnities or Indemnity or Indemnification or variations thereof means hold harmless obligations, defenses, indemnities and releases under this Contract, including under Attachment 8 -8.01 and Section 11.02. Independent Expert is the Person having the qualifications and selected under Section 12.03. Insurance means the insurance coverage described in Section 11.01. MB means the following: (1) Kodiak Island Borough, and (2) any transferee of Kodiak Island Borough under Section 16.01 a, and (3) for purpose of Indemnities, Kodiak Island Borough's Related Parties. MB Business Day means any day on which KIB Administration office is open to do business with the public. (Compare "Contract Service Day".) MB Code means municipal law of KIB. MB Governing Body means KIB Assembly. MB Office Hours means the hours of any MB Business Day on which MB Administration office is open to do business with the public. (Compare "Contractor Office Hours ") COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK MB Representative means the individual holding the position named by KIB under Section 17.07a. (Compare "Contractor Representative") KIB's Reimbursement Costs means KIB's Direct Costs plus 15 %. (Compare "Contractor's Reimbursement Costs") KIB's Related Parties means KIB's officers, employees, agents, contractors, attorneys, administrators, affiliates, representatives, servants, insurers, heirs, assigns, volunteers and each and every one of them. They are third party beneficiaries of provisions in this Contract that reference them. (Compare "Contractor's Related Parties") MB Landfill means the landfill owned by MB. Letter of Credit means the letter of credit described in Section 11.03. It is Contractor Documentation. Liabilities and Losses means all of the following: (1) liabilities, (2) lawsuits, (3) claims, (4) complaints, (5) causes of action, (6) citations, (7) investigations, (8) demands, (9) clean -up orders, (10) damages (including actual, special, consequential and punitive) whether in contract or in tort, such as natural resource, property and personal injury damages, (11) costs and expenses, including (i) all costs and expenses of litigation, mediation or arbitration, accountants fees, engineers fees, attorneys fees (whether MB's or Contractor's staff attorneys or outside attorneys) and other consultant's fees, expert witness fees, and court costs, and (ii) response remediation and removal costs, (12) losses, (13) debts, (14) liens, (15) mediation, arbitration, legal or administrative proceedings, (16) interest, (17) fines, charges, penalties, and (18) other detriments of every nature and description, whether under state or federal law. Liquidated Damages are described in Section 14.01. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Monthly Report means the report prescribed by Attachment 10.02a MSW Management Services means: (1) collection, transportation, storage, transfer, or processing of solid waste; and/or (2) arranging for disposal of solid waste. Multi- family describes Persons (such as Customers) or things (such as Carts or types of Solid Waste) in the Contract Service Area that are not Residential. Multi - family Customer means a Customer who owns or occupies a Multi- family Premise. Multi - family Premises means premises that are not residential premises (and therefore contains 4 or more dwelling units) including apartment complexes and trailer courts. Non - Collection Notice means a notice in form and substance satisfactory to MB left by Contractor in event of Contract Service Exceptions, such as Discard of Unpermitted Materials. Notice or Notify or other variation thereof means notice given under Section 19.01. "Due Notice" or "Notice duly given", refers to Notice given under Section 19.01. Own, Owner or Ownership or other variation there or has the meaning provided in the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the Contract Commencement Date , except that (1) 10% is substituted for 50% in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; (2) Section 318(a)(5)(C) is disregarded, and (3) ownership interest of less than 10 percent is disregarded and percentage interests is determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. Party and Parties means the following 2 Persons, individually and together: (1) KIB, and (2) Contractor. Performance Assurances means each and every Indemnity, Insurance, Letter of Credit and Guaranty, and any other instrument described in Article 11. Performance Obligations means each and every obligation and liability of Contractor under this Contract. Permit means the following: (1) permit, (2) registration, (3) order, COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (4) license (including business license), (5) approval, (6) authorization, (7) consent and (8) entitlement of whatever kind and however described that Applicable Law requires Contractor to obtain or maintain with respect to satisfaction of Performance Obligations, as renewed or amended from time to time. Person means any of the following: (1) individual, (2) sole proprietorship, (3) firm, (4) association, (5) organization, (6) partnership (whether limited or general), (7) corporation, (8) trust, (9) joint venture, (10) Regulatory Authority, or (11) any other entity. Position of Influence means a position of authority or responsibility to directly or indirectly administer, manage, direct, supervise or oversee Contract Services or this Contract, including the following: (1) Affiliate Parents' officers; (3) Affiliate Parents' directors; (4) individual who reviews or negotiates Contractor's contracts (including this Contract); (5) individual who provides in -house legal services; (6) Affiliate insurer (captive insurance), (7) Guarantor, and (8) Affiliate surety or other Person providing Performance Assurance. Premises means a tract of land with habitable buildings located in the Contract Service Area and safely accessible by Vehicles. Processing means solid waste: (1) reduction, (2) separation, (3) recovery, (4) conversion or (5) recycling, and (6) creating compost. processing does not mean baling refuse. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Processing means "processing" of Solid Waste. Promptly or Prompt means as soon as practicable, but not more than two days. Quarter means any of all of the following periods, as the context demands: (1) (2) (3) (4) January, February, March ( "1st Quarter "), April, May, June ( "2 Quarter "), July, August, September ( "3 Quarter "), October, November, December ( "4 Quarter "). RCRA means the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.). Reasonable Business Efforts means those efforts a reasonably prudent business Person would expend under the same or similar circumstances in the exercise of that Person's business judgment, intending in good faith to take steps calculated to satisfy the obligation which that Person has undertaken to satisfy. Receptacle means any Cart, Dumpster, Roll -off Container or other receptacle (such as bags designed for solid waste discard, but not shopping or grocery bags) for storing discarded Refuse. Records means information relating to Contract Services and other Performance Obligations, including documentation in any form or media, including: (1) ledgers and books of account, (2) invoices, vouchers and canceled checks, (3) logs and correspondence, (5) data and computations, (6) files, (7) reports, (8) drawings, plans and designs (other than those respecting facilities or facility operations that do not involve Collection, such as materials recovery facility plans and specifications), and (9) photographs. Recyclables means Solid Waste that is recyclable. Recycle, Recycling or Recyclable means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise become solid waste and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the market place. Recycled Content Procurement Policy means KIB'S current buy - recycled policy, if any. Refuse means Solid Waste comprised of rubbish, trash and garbage, excluding any Bulky Item that Contractor Diverts. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Regularly Scheduled Collection Day(s) means the same day(s) each week on which Contractor provides Collection to a Customer. Regulatory Contract: (1) (2) (3) (4) (5) (6) ( Authority means each of the following that has jurisdiction over either Party or this the United States, the State and other states, KIB, governmental authorities, agencies and districts, governmental boards and commissions, federal, state and local courts, and any other municipal, governmental or public bodies. Report means any report that Contractor is obligated to provide under this Contract, including Section 10.02. Residential describes Persons (such as Customers) or things (such as Carts, Premises or types of Solid Waste) in the Contract Service Area that reside or are related to Residential Premises. Residential Customer means a Customer who owns or occupies a Residential Premise. Residential Premise means a premises meeting both of the following conditions: (1) It contains one, two or three dwelling unit(s), and (2) Each dwelling unit is occupied by related individuals or by 5 or fewer unrelated individuals. Roll Off Container means an open- topped rectangular container for storage, collection and transport of Solid Waste that are rolled on and off flatbed collection vehicles via winches or reeving cylinders (hooks). Rollout Service means taking the following actions by manual means: dismounting from the Collection Vehicle, moving a Receptacle more than five feet (5') from its storage location indicated on that Customer's Service Subscription (such as within enclosures or by garages) to the Collection Vehicle for emptying, and returning the Receptacle to its storage location. (1) (2) (3) Senior Discount means the amount by which the Contractor Service Fee is reduced from time to time by KIB for providing Contract Service to any Residential Customer who is over 65 years old as evidenced to KIB by birth dates on driver's licenses, birth certificates, passports, green cards or other documentation issued by a Regulatory Authority. Service Day means a weekday or Saturday, Holidays excepted, when Contractor must provide Contract Services. (Compare "KIB Business Day ".) COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Set -out Site means the location agreed to by Contractor and the Customer and indicated on the Customer Service Subscription or required by MB, where Customer must place its Carts for Collection, including: (1) Residential curb: on the curb in front of Residential Premises; in the street immediately adjacent to that curb or; if there is no curb, at the edge of Customer's property abutting the street, unless Contractor provides Roll -out Service or Up -the- Drive Service; (2) Roll -out Service: at the storage location agreed upon between a Residential Customer and Contractor and included on the Customer Service Subscription; and. (3) Up- the -Drive Collection: at the storage location agreed upon between a Residential Customer and Contractor. Solid waste means "municipal solid waste" defined under AS 46.03.900. Solid Waste means "municipal solid waste" discarded in Receptacles located in the Contract Service Area that Contractor must Collect, including: (1) Refuse, (2) Recyclables, (3) Bulky Items, and (4) C &D Debris. but excluding Unpermitted Waste. Solid Waste Management Facility means the following facilities, individual and together, as the context demands: (1) KIB Landfill, and (2) any other facility that handles Solid Waste and that is approved by KIB. State means the State of Alaska. Subcontract means any arrangement, formal or informal, written or merely in practice, between Contractor and a Subcontractor, including: (1) contracts or agreements, (2) letters or memorandum of understanding or intent, (3) subscription or purchase orders. Subcontractor means anyone Person that provides Goods or Services related to Collection, transportation or storage of Solid Waste or related to Service Assets, including their operation, maintenance and repair, to or on behalf of Contractor. Term of this Contract means the period beginning on the Contract Commencement Date and ending on the Termination Date. Termination Date means the date this Contract expires or is earlier terminated. Termination Events are listed in Section 15.O1a. COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK Ton (or Tonnage) means a short ton of 2,000 pounds avoirdupois. Transfer means any of the following: (1) selling, exchanging or otherwise transferring Ownership or control of Contractor (through sale, exchange or other transfer of outstanding stock, partnership shares, equity interest or otherwise); (2) issuing new stock or selling, exchanging or otherwise transferring 20% or more of the then outstanding common stock of, or partnership shares or equity interest in, Contractor; (3) any dissolution, reorganization, consolidation, merger, re- capitalization, stock issuance or re- issuance, voting trust, pooling agreement, escrow arrangement, liquidation, buy -out or other transaction which results in a change of Ownership or control of Contractor; (4) any assignment by operation of law, including insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment of an execution, being levied against Contractor, appointment of a receiver taking possession of any of Contractor's tangible or intangible property; (5) any sale or other transfer of 50% or more of the value of assets of Contractor except for sales or transfers to parents, grandparents, siblings, children, and grandchildren of persons having a shareholder, partnership or other equity interest in Contractor on the Contract Commencement Date ( "Immediate Family ") or trust created primarily to benefit members of the Immediate Family; (6) substitution by a surety company providing any performance bond of another Person for Collector to perform Contract Services; and (7) assumption of any of Contractor's rights under this Contract, or (8) assumption by, delegation to or takeover of any Performance Obligations or any other Contractor's duties or responsibilities under this Contract by any Person other than Contractor, whether by Subcontract (unless approved by KIB under Section 17.10) or any other mechanism. (9) any combination of the forgoing (whether or not in related or contemporaneous transactions), without consideration, which has the effect of any transfer or change of Ownership or control of Contractor. For the purpose of this definition, "control" has the meaning provided in Rule 144 of the Securities Act of 1993 Transition Plan means the plan under Attachment 7 -7.04, in form and content satisfactory to KIB. It is Contractor Documentation. Uncontrollable Circumstance(s) means any of the following events: (1) any natural disaster such as landslide, lightning, earthquake, fire, flood, tsunami, (other than reasonably anticipated weather conditions for the geographic area of KIB, such as wind, rain or snow); (2) sabotage, explosion; (3) insurrection, riot or civil disturbance, war or other emergency affecting KIB declared by the President of the United Sates or Congress of the United States, the State Governor or MB Governing Body; COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (4) failure of public agency or private utility to provide and maintain water, power or service in MB or at Contractor's operations and maintenance yard or administrative offices; (5) other catastrophic events beyond the reasonable control of that Party and not the result of willful or negligent action or inaction of that Party (other than the contesting in good faith or the failure in good faith to contest that action or inaction), which materially and adversely affects the ability of either Party to perform any obligation under this Contract despite that Party's exercise of due diligence. Uncontrollable Circumstances excludes, without limitation: (1) Breach, Default or Contractor's financial inability to satisfy its Performance Obligations; (2) strikes, work stoppages or other labor disputes or disturbances of any Subcontractor or Contractor's inability to hire adequate numbers of personnel who are competent and skilled in the work to which they are assigned; (3) failure of Contractor to obtain Permits and patents, licenses, or trademarks necessary to perform Contract Services; and (4) the failure of any Contract Service Asset to function under any warranties, unless caused by Uncontrollable Circumstances. Unpermitted Waste means materials that cannot be disposed of in the MB Landfill under Applicable Law of the State or MB rules. Unpermitted Waste Screening Protocol means the protocol under Section 7 -7.02, in form and content satisfactory to MB. It is Contractor Documentation. Vehicle means any truck used to provide Contract Services. Violation means any noncompliance with Applicable Law as evidenced by written notice, assessment or determination of any Regulatory Authority to Contractor, whether or not a fine or penalty is included, assessed, levied or attached. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK "CONTRACT MANAGERS" CONTRACTOR AFFILIATE PARENT SUCCESSIVE AFFILIATE PARENT (1) CONTRACTOR REPRESENTATIVE Name and/or Title Jeff Riley, COO Jeff Riley, COO (2) OFFICERS: Chief Operating Officer Chief Financial Officer Telephone 907.273.2763 (3) Management Board 1. 2. 3. 4. 5. 907.486.5308 Email (4) "POSITION OF INFLUENCE" (1) officers of Parent Affiliate President Vice - President Secretary Treasurer ieffr(i akwaste.com carollm(akwaste.com APPENDIX: CONTRACTOR INFORMATION AND DOCUMENTATION Attachment 21.01 "Contract Managers" (with respect to Section 15.02 Criminal Activity) COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK Contractor Representative 17.07b Contractor Notice 19.01 "Contractor Office" (local) Attachment 21.01 Name and/or Title Jeff Riley, COO Jeff Riley, COO Caroll Mahoney, Site Manager Telephone 907.273.2763 907.273.2763 907.486.5308 Email jeffr@akwaste.com ieffr(i akwaste.com carollm(akwaste.com Telefax 907.273.2730 907.273.2730 907.486.2300 Postal address 6301 Rosewood St Anchorage, AK 99518 6301 Rosewood St Anchorage, AK 99518 1621 Mill Bay RD Kodiak, AK 99615 Delivery address 6301 Rosewood St Anchorage, AK 99518 6301 Rosewood St Anchorage, AK 99518 1621 Mill Bay RD Kodiak, AK 99615 APPENDIX: CONTRACTOR INFORMATION AND DOCUMENTATION Attachment 21.01 "Contract Managers" (with respect to Section 15.02 Criminal Activity) COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK (2) Directors of Parent Affiliate (3) individual who reviews / negotiates Contract (4) individual providing in- house legal services (5) Guarantor (6) Affiliate insurer (7) Affiliate surety etc. COLLECTION SERVICES CONTRACT 1 Kodiak Island Borough, AK CONTRACTOR DOCUMENTATION (in form and content satisfactory to MB) 7 -7.01 CUSTOMER COMPLAINT PROTOCOL 7 -7.02 UNPERMITTED WASTE SCREENING PROTOCOL 7 -7.03 TRANSITION PLAN 7 -7.07 CUSTOMER BILLING AND BILL COLLECTION PROCEDURE 7 -7.08 CART INVENTORY AND SERVICE ASSET DOCUMENTATION (purchase invoices & warranties) 7 -7.09 FORM OF CUSTOMER SERVICE SUBSCRIPTION; "BILL OF RIGHTS" 11.01 EVIDENCE OF INSURANCE: (1) COIs, (2) ENDORSEMENTS, (3) SCHEDULES 11.03 LETTER OF CREDIT 11.04 GUARANTY O4 COLLECTION SERVICES CONTRACT I Kodiak Island Borough, AK KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING TITLE: Contract No. FY2010 -34 Kodiak Auditorium Roofing Project. SUMMARY: ITEM NO: 13.A.1 Kodiak Island Borough code 3.16.020 "Limitation of Manager's Authority" states that a contract exceeding $25,000 requires Assembly approval. This contract is for the Kodiak Auditorium Roofing Project as shown on construction documents prepared by Jensen Yorba Lott, Inc. The construction documents, bid documents, and associated addenda are available for review. The project budget of $936,490 was approved by the Assembly in Ordinance FY2010 -01A on January 21, 2010. Bids were received in response to the Borough's Invitation to Bid dated March 17, 2010. Jay - Brant General Contractors, LLC was the low bidder for the project. A bid tabulation is attached. FISCAL NOTES: Account No.: 450 -550 452 -150 09011 6 Amount Budgeted: $936,490 Expenditure Required: $635,679 APPROVAL FOR AGENDA: swiv" RECOMMENDED MOTION: Move to approve Contract No. FY2010 -34 with Jay -Brant General Contractors, LLC for the Kodiak Auditorium Roofing Project in an Amount not to Exceed $635,679. Init. t AI® Document A101 - 2007 Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum 1 AGREEMENT made as of the Fourteenth day of April in the year Two Thousand Ten (In words, indicate day, month and year.) BETWEEN the Owner: (Name, legal status, address and other information) Kodiak Island Borough 710 Mill Bay Road, Kodiak, Alaska, 99615 Telephone Number: 907 486 9349 Fax Number: 907 486 9347 and the Contractor: (Name, legal status, address and other information) Jay -Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 for the following Project: (Name, location and detailed description) KHS Auditorium Roof Replacement Kodiak,Alaska The Architect: (Name, legal status, address and other information) Jensen Yorba Lott, Inc 522 West 10th Street Juneau, Alaska 99801 The Owner and Contractor agree as follows. ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added Information as well as revisions to the standard form text Is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the author has added to or deleted from the original AIA text. This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification. AIA Document A201 TM -2007, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. AIA Document A101" — 2007. Copyright 01915, 1918, 1925, 1937, 1951, 1958, 1981, 1963, 1987, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. M rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.8856208149 1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Init. TABLE OF ARTICLES 1 THE CONTRACT DOCUMENTS 2 THE WORK OF THIS CONTRACT 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION 4 CONTRACT SUM 5 PAYMENTS 6 DISPUTE RESOLUTION 7 TERMINATION OR SUSPENSION 8 MISCELLANEOUS PROVISIONS 9 ENUMERATION OF CONTRACT DOCUMENTS 10 INSURANCE AND BONDS ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. An enumeration of the Contract Documents, other than a Modification, appears in Article 9. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others. ARTICLE 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § 3.1 The date of commencement of the Work shall be the date of this Agreement unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. (Insert the date of commencement if it dyers from the date of this Agreement or, if applicable, state that the date will be fired in a notice to proceed) If, prior to the commencement of the Work, the Owner requires time to file mortgages and other security interests, the Owner's time requirement shall be as follows: § 3.2 The Contract Time shall be measured from the date of commencement. § 3.3 The Contractor shall achieve Substantial Completion of the entire Work not later than ( ) days from the date of commencement, or as follows: (Insert number of calendar days. Alternatively, a calendar date may be used when coordinated with the date of commencement. If appropriate, insert requirements for earlier Substantial Completion of certain portions of the Work) AIA Document A101 — 2007. Copyright 01915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced byAIA software at 15:27:54 on 04/23/2010 under Order No.6656208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Init. 1 The Contractor shall achieve Substantial Completions of the entire Work not later than August 1, 2010 Portion of Work Substantial Completion Date , subject to adjustments of this Contract Time as provided in the Contract Documents. (Insert provisions, if any, for liquidated damages relating to failure to achieve Substantial Completion on time or for bonus payments for early completion of the Work) Liquidated damages of $1000 per day as per the Proposal form submitted by contractor. ARTICLE 4 CONTRACT SUM § 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the Contract. The Contract Sum shall be Six Hundred Thirty Five Thousand, Six Hundred Seventy Nine Dollars and no cents. , ($635,679.00 ), subject to additions and deductions as provided in the Contract Documents. § 4.2 The Contract Sum is based upon the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: (State the members or other identification of accepted alternates. If the bidding or proposal documents permit the Owner to accept other alternates subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when that amount expires.) Alternate 1 -Non Penetrating Mechanically Fastened Membrane Roofing System § 4.3 Unit prices, if any: (Identify and state the unit price; state quantity limitations, if any, to which the unit price will be applicable.) Item Alternate 1 Non penetrating Mechanically Fastened Membrane Roofing System Item Price Units and Limitations Lump Sum § 4.4 Allowances included in the Contract Sum, if any: (Ident fy allowance and state exclusions, if any, from the allowance price.) Price Per Unit ($0.00) Price included in contract amount. ARTICLE 5 PAYMENTS § 5.1 PROGRESS PAYMENTS § 5.1.1 Based upon Applications for Payment submitted to the Architect by the Contractor and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents. § 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows: § 5.1.3 Provided that an Application for Payment is received by the Architect not later than the Fifth day of a month, the Owner shall make payment of the certified amount to the Contractor not later than the Thirtieth day of the same month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner not later than Thirty ( 30 ) days after the Architect receives the Application for Payment. (Federal, state or local laws may require payment within a certain period of time) AIA Document A101 TM - 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1981, 1963, 1987, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6656208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Init. § 5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor's Applications for Payment. § 5.1.5 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. § 5.1.6 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: .1 Take that portion of the Contract Sum properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the share of the Contract Sum allocated to that portion of the Work in the schedule of values, less retainage of Ten percent (10 %). Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of AIA Document A201TM -2007, General Conditions of the Contract for Construction; .2 Add that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction (or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less retainage of Ten percent (10 %); .3 Subtract the aggregate of previous payments made by the Owner; and .4 Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201 -2007. § 5.1.7 The progress payment amount determined in accordance with Section 5.1.6 shall be further modified under the following circumstances: .1 Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to the full amount of the Contract Sum, less such amounts as the Architect shall determine for incomplete Work, retainage applicable to such work and unsettled claims; and (Section 9.8.5 ofAIA DocumentA201 -2007 requires release of applicable retainage upon Substantial Completion of Work with consent of surety, if any.) .2 Add, if final completion of the Work is thereafter materially delayed through no fault of the Contractor, any additional amounts payable in accordance with Section 9.10.3 of AIA Document A201 -2007. § 5.1.8 Reduction or limitation of retainage, if any, shall be as follows: (If it is intended, prior to Substantial Completion of the entire Work to reduce or limit the retainage resulting from the percentages inserted in Sections 5.1.6.1 and 5.1.6.2 above, and this is not explained elsewhere in the Contract Documents, insert here provisions for such reduction or limitation.) § 5.1.9 Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. § 5.2 FINAL PAYMENT § 5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully performed the Contract except for the Contractor's responsibility to correct Work as provided in Section 12.2.2 of AIA Document A201 2007, and to satisfy other requirements, if any, which extend beyond final payment; and .2 a final Certificate for Payment has been issued by the Architect. .3 the Owner shall withhold 10% of the final pay application until Owner receives signed notification of project completion from the Alaska Department of Labor. AIA Document A101 *" - 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. M rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and international Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.8658208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Init. § 5.2.2 The Owner's final payment to the Contractor shall be made no later than 30 days after the issuance of the Architect's final Certificate for Payment, or as follows: ARTICLE 6 DISPUTE RESOLUTION § 6.1 INITIAL DECISION MAKER The Architect will serve as Initial Decision Maker pursuant to Section 15.2 of AIA Document A201 2007, unless the parties appoint below another individual, not a party to this Agreement, to serve as Initial Decision Maker. (If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.) § 6.2 BINDING DISPUTE RESOLUTION For any Claim subject to, but not resolved by, mediation pursuant to Section 15.3 of AIA Document A201-2007, the method of binding dispute resolution shall be as follows: (Check the appropriate box. If the Owner and Contractor do not select a method of binding dispute resolution below, or do not subsequently agree in writing to a binding dispute resolution method other than litigation Claims will be resolved by litigation in a court of competent jurisdiction.) [ X ] Arbitration pursuant to Section 15.4 of AIA Document A201 -2007 [ ] Litigation in a court of competent jurisdiction [ ] Other (Specify) ARTICLE 7 TERMINATION OR SUSPENSION § 7.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A201 -2007. § 7.2 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201 -2007. ARTICLE 8 MISCELLANEOUS PROVISIONS § 8.1 Where reference is made in this Agreement to a provision of AIA Document A201 -2007 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. § 8.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon if any.) % § 8.3 The Owner's representative: (Name, address and other information) Ken Smith, PE Project Manager 710 Mill Bay Road Kodiak, Alaska AIA Document A101" 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1981, 1983, 1987, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.B. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of It, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6856208149 1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Init. t Telephone: (907) 486 -9341 Fax: (907) 486 -9347 E -mail: ksmith@kodiakak.us § 8.4 The Contractor's representative: (Name, address and other information) Chuck Jay Jay -Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 Telephone: (907) 235 -8400 ext 111 E -mail: cjay@jaybrant.com § 8.5 Neither the Owner's nor the Contractor's representative shall be changed without ten days written notice to the other party. § 8.6 Other provisions: ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS § 9.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in the sections below. § 9.1.1 The Agreement is this executed AIA Document A101 -2007, Standard Form of Agreement Between Owner and Contractor. § 9.1.2 The General Conditions are AIA Document A201-2007, General Conditions of the Contract for Construction. § 9.1.3 The Supplementary and other Conditions of the Contract: Document Title Date Pages § 9.1.4 The Specifications: (Either list the Specifications here or refer to an exhibit attached to this Agreement.) Title of Specifications exhibit: Project Manual Table of Contents, KIB Auditorium Roof Replacement, March 11, 2010. Section Title Date Pages § 9.1.5 The Drawings: (Either list the Drawings here or refer to an exhibit attached to this Agreement.) Title of Drawings exhibit: Project Manual Table of Contents, KIB Auditorium Roof Replacement March 11, 2010 Number Title Date § 9.1.6 The Addenda, if any: Number Date Pages Addendum 1 3/22/2010 1 AIA Document A101 TM — 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1981, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of thls AIA Document, or any portion of It, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6656208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) !nit Addendum 2 Addendum 3 § 9.1.7 Additional documents, if any, forming part of the Contract Documents: This Agreement entered into as of the day and year first written above. OWNER (Signature) 1 Rick Gifford, Kodiak Island Borough Manager (Printed name and title) 3/30/2010 4/5/2010 2 1 Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this Article 9. .1 AIA Document E201TM -2007, Digital Data Protocol Exhibit, if completed by the parties, or the following: .2 Other documents, if any, listed below: (List here any additional documents that are intended to form part of the Contract Documents. AIA Document A201 -2007 provides that bidding requirements such as advertisement or invitation to bid, Instructions to Bidders, sample forms and the Contractor's bid are not part of the Contract Documents unless enumerated in this Agreement. They should be listed here only if intended to be part of the Contract Documents.) ARTICLE 10 INSURANCE AND BONDS The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11 of AIA Document A201 -2007. (State bonding requirements, if any, and limits of liability for insurance required in Article 11 of AIA Document A201- 2007.) Type of insurance or bond Limit of liability or bond amount ($0.00) CONTRACTOR (Signature) Chuck Jay (Printed name and title) AIA Document A101 ^' — 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1983, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6856208149_1 which epires on 04/14/2011, and is not for resale. User Notes: (844587879) Additions and Deletions Report for AIA Document A101 - 2007 This Additions and Deletions Report, as defined on page 1 of the associated document, reproduces below all text the author has added to the standard form AIA document in order to complete it, as well as any text the author may have added to or deleted from the original AIA text. Added text is shown underlined. Deleted text Is indicated with a horizontal line through the original AIA text. Note: This Additions and Deletions Report Is provided for Information purposes only and is not Incorporated into or constitute any part of the associated AIA document. This Additions and Deletions Report and its associated document were generated simultaneously by AIA software at 15:27:54 on 04/23/2010. PAGE 1 AGREEMENT made as of the Fourteenth day of April in the year Two Thousand Ten Kodiak Island Borough 710 Mill Bay Road, Kodiak, Alaska, 99615 Telephone Number: 907 486 9349 Fax Number: 907 486 9347 Jay -Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 KHS Auditorium Roof Replacement Kodiak,Alaska Jensen Yorba Lott, Inc 522 West lath Street Juneau, Alaska 99801 PAGE 3 The Contractor shall achieve Substantial Completions of the entire Work not later than August 1, 2010 Liquidated damages of $1000 per day as per the Proposal form submitted by contractor. § 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor's performance of the Contract. The Contract Sum shall be ($ Six Hundred Thirty Five Thousand, Six Hundred Seventy Nine Dollars and no cents. , ($635,679.00 ), subject to additions and deductions as provided in the Contract Documents. Additions and Deletions Report for AIA Document A101" — 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1981, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.8858208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Alternate 1 -Non Penetrating Mechanically Fastened Membrane Roofing System § 5.1.3 Provided that an Application for Payment is received by the Architect not later than the Fifth day of a month, the Owner shall make payment of the certified amount to the Contractor not later than the Thirtieth day of the same month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner not later than Thirty ( ) days after the Architect receives the Application for Payment. PAGE 4 PAGE5 PAGE 6 Alternate 1 Non penetrating Mechanically Fastened Membrane Roofing System Lump Sum Price included in contract amount. .1 Take that portion of the Contract Sum properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the share of the Contract Sum allocated to that portion of the Work in the schedule of values, less retainage of Ten percent (10 %). Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of AIA Document A201TM -2007, General Conditions of the Contract for Construction; .2 Add that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the completed construction (or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less retainage of Ten percent (10 %); .3 the Owner shall withhold 10% of the final pay application until Owner receives signed notification of project completion from the Alaska Department of Labor. Ken Smith. PE Project Manager 710 Mill Bay Road Kodiak. Alaska Telephone: (907) 486 -9341 Fax: (907) 486 -9347 E -mail: ksmith@kodiakak.us Arbitration pursuant to Section 15.4 of AIA Document A201-2007 Chuck Jay Jay -Brant General Contractors 460 Grubstake Ave. Homer, AK 99603 Telephone: (907) 235 -8400 ext 111 E -mail: clay @iaybrant.com Additions and Deletions Report for AIA Document A101" — 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6856208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Title of Specifications exhibit: Project Manual Table of Contents, KIB Auditorium Roof Replacement, March 11, 2010. Title of Drawings exhibit: Project Manual Table of Contents, KIB Auditorium Roof Replacement March 11, 2010 PAGE 7 Addendum 1 3/22/2010 1 Addendum 2 3/30/2010 2 Addendum 3 4/5/2010 1 Rick Gifford, Kodiak Island Borough Manager Chuck Jay Additions and Deletions Report for AIA Document A101 — 2007. Copyright O 1915, 1918, 1925, 1937, 1951, 1958, 1981, 1983, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document Is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.8858208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Certification of Document's Authenticity AIA® Document D401 TM — 2003 I, Antonio Yorba, hereby certify, to the best of my knowledge, information and belief, that I created the attached final document simultaneously with its associated Additions and Deletions Report and this certification at 15:27:54 on 04/23/2010 under Order No. 6656208149_1 from AIA Contract Documents software and that in preparing the attached final document I made no changes to the original text of AIA Document A101T"i — 2007 - Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum, as published by the AIA in its software, other than those additions and deletions shown in the associated Additions and Deletions Report. (Title) L (Dated) c D.e.Je, i v AIA Document D401"' — 2003. Copyright O 1992 and 2003 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 15:27:54 on 04/23/2010 under Order No.6656208149_1 which expires on 04/14/2011, and is not for resale. User Notes: (844587879) Clarion $ 720,750 $ (37,350) $ (466,000) $ 30,000 $ 11,500 $ (30,000) $ 683,400 Diff (Low) $ 47,721 % Diff (Low) 107.51% % Of Est 94% Silver Bow $ 1,200,000 $ - $ (466,000) $ 30,000 $ 11,500 $ (30,000) $ 745,500 Diff (Low) $ 109,821 % Diff (Low) 117.28% % Of Est 103% Universal Roofing $ 800,000 $ - $ (136,000) $ (18,000) $ 646,000 Diff (Low) $ 10,321 % Diff (Low) 101.62% % Of Est 89% Roger Hickel $ 899,990 $ (25,000) $ 874,990 Diff (Low) $ 239,311 % Diff (Low) 137.65% % Of Est 121% Kodiak Island Borough Bid Tabulation Kodiak Auditorium Roof Project Bid Opening: 4/7/10 3:00 PM Mod 1 base bid No. GENERAL CONTRACTOR BASE BID ALT. #1 (ADD) Mod 1 Alt. 1 Mod 2 base bid Mod 2 Alt. 1 Total (Base + Alt's) 1 % Of Est $ 1,000,000 $ (316,541) $ (47,780) 0 88% Unofficial Results 1 (Estimate 1 $ 725,000 I TITLE: Resolution No. FY2010 -32 Approving the Village of Karluk and Its Native Village Council to Participate in the FY2011 Community Revenue Sharing Program. SUMMARY: This resolution identifies Karluk as an unincorporated community that meets the Community Revenue Sharing Program eligibility criteria established under AS 29.60.865, AS 29.60.879 and 3 AAC 180.110. Karluk has more than 25 residents and provides fire protection, emergency medical response, water and sewer, solid waste management, and public road maintenance to its residents. APPROVAL FOR AGENDA: KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING RECOMMENDED MOTION: Move to adopt Resolution No. FY2010 -32. ITEM NO: 13.B.1 Introduced by: Manager Gifford 1 Requested by: Karluk 2 Drafted by: Manager Gifford Introduced on: 05/06/2010 3 Adopted: 4 5 6 KODIAK ISLAND BOROUGH 7 RESOLUTION NO. FY2010 -32 8 9 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY 10 APPROVING THE VILLAGE OF KARLUK AND ITS NATIVE VILLAGE COUNCIL TO 11 PARTICIPATE IN THE FY2011 COMMUNITY REVENUE SHARING PROGRAM 12 13 WHEREAS, AS 29.60.865 and AAC 180.070 require the Borough Assembly to adopt a 14 resolution identifying those unincorporated communities located within its municipal 15 boundaries that meet the Community Revenue Sharing Program eligibility criteria 16 established under AS 29.60.865, AS 29.60.879, and 3 AAC 180.110; and 17 18 WHEREAS, Karluk has a Native Village Council that agrees to receive and spend the 19 Community Revenue Sharing payment for the public benefit; and 20 21 WHEREAS, Karluk has 25 or more residents residing as a social unit; and 22 23 WHEREAS, Karluk provides fire protection, emergency medical response, water and 24 sewer, solid waste management; and public road maintenance; and 25 26 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 27 BOROUGH THAT the Kodiak Island Borough, by this resolution, hereby certifies that the 28 Village of Karluk, through the Native Village Council, is eligible for funding under the FY2011 29 Community Revenue Sharing Program. 30 31 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 32 THIS DAY OF , 2010 33 34 35 KODIAK ISLAND BOROUGH 36 37 38 39 40 ATTEST: Jerome M. Selby, Borough Mayor 41 42 43 44 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough Resolution No. FY2010 -32 Page 1 of 1 TITLE: Ordinance No. FY2010 -01 B Amending Ordinance No. FY2010 -01 Fiscal Year 2010 Budget to Appropriate Funds for the Purpose of Providing Information on "An Initiative Creating an Alaska Anti - Corruption Act (Gag Law)" Which will be on the 2010 Alaska Primary Election Ballot. SUMMARY: KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING ITEM NO: 13.C.1 On August 24, 2010, an initiative will be on the Alaska primary ballot which will ask the voters to decide if public funds can be used for election campaigns. The Kodiak Island Borough believes that this law goes deeper than is stated and the Assembly would like to release accurate information regarding this initiative to effectively communicate that municipalities will be affected in the following ways: • municipalities will not be able to hire lobbyists for capital projects or for help with legislation; • elected officials will not be able to travel to Juneau to talk with the legislature unless they pay for their travel and lodging with their own money; and • municipalities will not be able to have any person lobby unless they are specifically invited by a legislator. In order to fund this advertising effort, AS 15.13.145(4b) requires that funds be specifically appropriated for that purpose by a municipal ordinance. Ordinance No. FY2010 -01B amends Ordinance No. FY2010 -01 and appropriates $1,000 for the purpose of providing information on this initiative. FISCAL NOTES: Account No.: Amount Budgeted: Expenditure Required: APPROVAL FOR AGENDA: RECOMMENDED MOTION: Move to adopt Ordinance No. FY2010 -01B in first reading to advance to public hearing at the next regular meeting of the Assembly. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2010 -01B Introduced by: Requested by: Drafted by: Introduced: Public Hearing: Adopted: Borough Assembly Borough Assembly Borough Clerk 05/06/2010 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING ORDINANCE NO. FY2010 -01 TO APPROPRIATE FUNDS FOR THE PURPOSE OF PROVIDING INFORMATION ON "AN INITIATIVE CREATING AN ALASKA ANTI - CORRUPTION ACT" WHICH WILL BE ON THE 2010 ALASKA PRIMARY ELECTION BALLOT WHEREAS, on August 24, 2010, an initiative will be on the Alaska primary ballot which will ask the voters to decide if public funds can be used for election campaigns; and WHEREAS, the Kodiak Island Borough believes that this law goes much deeper than is stated; and WHEREAS, to effectively Kodiak Island Borough the Assembly wishes to release accurate information regarding this initiative communicate that municipalities will be affected in the following ways: • municipalities will not be able to hire lobbyists for capital projects or for help with legislation; • elected officials will not be able to travel to Juneau to talk with the legislature unless they pay for their travel and lodging with their own money; and • municipalities will not be able to have any person lobby unless they are specifically invited by a legislator; and WHEREAS, Alaska Statutes Section 15.13.145(4b) states "money held by a municipality may be used to influence the outcome of an election concerning a ballot proposition or question, but only if the funds have been specifically appropriated for that purpose by a municipal ordinance ". NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is not of general application and shall not be codified. Section 2: Ordinance No. FY2010 -01 will be amended and $1,000 will be appropriated for the purpose of providing information on this initiative. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2010 ATTEST: Jerome M. Selby, Borough Mayor Nova M. Javier, MMC, Borough Clerk KODIAK ISLAND BOROUGH Ordinance No. FY2010 -01 B Dnc 1 of 1 KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING TITLE: Confirmation of the Assembly Appointment to the Service Area No. 1 Board. SUMMARY: ITEM NO: 13.D.1 Two applications were received and submitted to the Service Area No. 1 Board for its review in order to provide a recommendation to the Assembly for the vacant seat term to expire December 2010. The applicants were Mr. Tuck Bonney and Mr. Greg Spalinger. At its regular meeting on April 13, 2010, the Service Area No. 1 Board decided to recommend the appointment of Mr. Spalinger to the vacant seat for a term to expire October 2010. 4.15.040 Vacancies. E. The service area board may submit its nomination of a person from the submitted applications to fill the vacancy to the assembly. The assembly shall appoint a new member selected from the submitted applications for the remaining unexpired term. FISCAL NOTES: N/A Account No.: Amount Budgeted: Expenditure Required: APPROVAL FOR AGENDA: RECOMMENDED MOTION: Move to confirm the Assembly appointment of Mr. Greg Spalinger to the Service Area No. 1 Board for a term to expire December 2010. Form Ver. 06/30/2009 April 14, 2010 Kodiak island Borough Assembly 710 Mill Bay Road Kodiak, AK 99615 RE: Recommendation to Service Area No. 1 Board The Service Area No. 1 Board met on Tuesday, April 13, 2010 at KFRC to review applications for the vacant seat for a term to expire October 2010. There were two applications received. The Board recommends the Assembly appoint Greg Spalinger to the vacant seat on the Service Area No. 1 Board with the term to expire October 2010. Sincerely, S "11,r,74, Scott Arndt Service Area No. 1 Chair cc: Rick Gifford, K1B Manager Mayor Selby Service Area No. 1 Board 7 Mill Bay Rd Kodiak, AK 99615 Phone: (907) 486 -9343 Fax: (907) 486 -9394 TEC -- i � APR 1 4 2010 1 BOROUGH Gl_ERK'S OFFICE Nova Javier From: Nova Javier Sent: Wednesday, May 05, 2010 10:27 AM To: 'Branson'; Friend; fulp; jeffrey; kaplan; lynch; Selby; stutes; 'Branson'; 'Friend'; 'Jeffrey'; 'Kaplan'; 'Lynch'; 'Stutes' Cc: Rick Gifford Subject: Reminder Meeting /April 13 Service Area #1 Minutes Hello everyone, Just a reminder that you have a regular meeting tomorrow night at 7:30 p.m. At the last work session, Assembly member Branson requested a copy of the April 13 Service Area No. 1 Minutes during the discussion of the Service Area No. 1 recommendation. The discussion regarding that recommendation is below. Please let me know if you have any questions. Thank you, Nova Nova M. Javier, MMC Borough Clerk PUBLIC RECORDS LAW DISCLOSURE: This e -mail and responses to this email are subject to provisions of the Alaska Statutes and may be made available to the public upon request. From: Mary Barber Sent: Friday, April 30, 2010 5:10 PM To: Nova Javier Subject: RE: Draft April 13 Service Area #1 Minutes The motion was made to recommend G. Spalinger and seconded. There wasn't much discussion, it was done by closed ballot with the tally of 4 yeas -S. Arndt, A. Torres, D. Symmons and T. Martin and 2 nays -K. Arndt and C. Lorenson. I'll work on the draft next week. Mary J. Barber Engineering & Facilities Kodiak Island Borough (907) 486 -9343 / (907) 486 -9394 fax mbarber@kodiakak.us. 1 1. Call to Order Chair C. Lorenson called the meeting to order at 7:04 pm. 2. Roll Call Present were Board Members K. Arndt, S. Arndt, C . e renson, T. Martin, D. Symmons and A. Torres. Others present were M. Barber, d Borough, T. Bonney and G. Spalinger. A quorum was established. 3. Approval of Agenda It was MOVED, S. Arndt and seconded to eve the �enda. M.. CARRIED by an affirmative voice vote. 4. Approval of Previous Minu It was MOVED, S. 12 and March 9th meeting. Motio 5. Acknowledge T. Bonney a wanted to join Borough Assemb roads, but no reason want to do four meetin Service Area No. 1 Board Regular Meeting 13 April 2010 7:00 pm KFRC Conference Room dt and seco the addi an affi Financial ° v s ort seco ve voic ary 8 ary 12 and March 9, 2010 es of February 8 February resent at the March 9, 2010 wledge Receipt of the Financial Report. hey had any questions for him. T. Martin asked him why he e responded that he was bored and didn't want to run for took way too much effort, that and he was interested in the icular. He stated the kids were out of the house, but he didn't a week or anything of that nature. He thought Service Area No. 1 would be a good Board to get on. G. Spalinger said hello to the Board. 7. Chair Report Chair Lorenson told the Board that ditching was done a while ago and some missing signs were put up. He said he received a lot of calls from residents wanting to know when they C: \Documents and Settings \njavier \Local Settings \Temporary Internet Files \Content.Outlook \T4MFH33T \Draft Minutes 4 13 10.doc were going to get Curlew, Puffin and Gull streets graded. He said it was tough now with the weather, but they would get out and take care of it as soon as they could. He checked their stock of Calcium Chloride and told the Board there were five bags left, so he felt they should order the same amount as they did last year. He called Louie with Brechan and wasn't able to get tentative figures from him for paving Service Area No. 1's section of Selief. He told the Board there was ditching that needed to be done on Anton and Lilly, but it gets expensive, so whoever got elected as Chair should check with the Board to find out if they wanted to spend the money towards ditching or save the money to put toward paving Selief. The holes on Selief had been cold patched two times so far this past winter. 8. Old Business a. Election of Officers D. Symmons told the Board that both he and position and he proposed there be two Co- made were; questions of legality, bylaws, in were i ted in the Vice -Chair instead. Discus ollowed and points ng, contractor interfa ho to direct calls to. S. Arndt and C. Lorenson stated ey were inter. ' • hair position. • rndt nominated C. Lorenson and D. * s nominat- rndt for Chair. A ste by ballot was conducted and S. Arndt won ote. D. Symmons and T. Martin stated th nominated T. Mart artin no was conducted . art +n by a vailable, 2 Applications) e -Chair position. A. Torres ice - Chair. A vote by ballot It OVED, �r . ' �� mo secon. - . ecommend to the Assembly to appoint G. Spa to the vac. t for . to expire October 2010. It was M , K. Arndt secon . to Amend the Main Motion by replacing G. Spalinger w . ! Bonney . , o recommend to the Assembly to appoint T. Bonney to the vacant seat for . • to ex r October 2010. A vote by ballot was conducted and the Motion FAILED A roll call vote was con + cted on the Main Motion to recommend to the Assembly to appoint G. Saplinger to the vacant seat for a term to expire October 2010. Motion CARRIED unanimously. C: \Documents and Settings \njavier \Local Settings \Temporary Internet Files \Content.Outlook \T4MFH33T \Draft Minutes 4 13 10.doc 9. New Business a. Calcium Chloride Quotes Chair Lorenson told the Board there were 2 quotes were received for Calcium Chloride. Univar quoted $13,200 and Round Butte quoted 11,645.22. It was MOVED, S. Arndt and seconded to have M. Barber issue a purchase order to Round Butte for 20 tons of Calcium Chloride to be delivered to Kodiak in the amount of $11,645.22. Discussion followed and points made were; how many bags ` on hand, previous amount purchased, shelf life and use. A roll call vote was condu d the Motion CARRIED unanimously. Chair Lorenson told the Board that the for billed the Se - Area for chain repair. He wanted to know how the Board felt a these charges. K. A aid there aren't any provisions in the contract to repair chains. Torres ' • the cont • idn't require the contractor to use chains so the S - ice Area sh or the contra o repair them. The chains may be a safety iss i e contract • at's their choice `• use or not. K. Arndt asked that the Board direc '' to discus • ges for repairs on equipment with contractor. 10. Visitor Com G. Spalinger th see a drive around address 11 b. Equipment Repair Invoices T. M was goin seen and pro C. Lorenson he him for his servic on the Board next ye or appoi ervice Di im to the oard. He said he would like to to pinpoint any issues that may need to be et together to discuss a couple of things. He said he proto . ` hings in the future on some of the problems he's oblems are going to be addressed and in what order. He told job, but he's a firm believer in changing it up and thanked didn't want to see the same Chair every year and if he's still uld do the same thing. S. Arndt welcomed G. Spalinger to the Board. He thanked the Board for electing him as Chair and said he would be working with T. Martin and D. Symmons as much as possible to try and make the transition as simple as possible in the future. A.Torres welcomed G. Spalinger to the Board. He said as far as the votes for the new member on the Board, he went in to the meeting with an open mind but getting on the Board because you have spare time wasn't an answer that was appropriate and that's what changed his mind on who to appoint. He told the Board he was looking forward to getting Puffin, C: \Documents and Settings \njavier \Local Settings \Temporary Internet Files \Content.Outlook \T4MFH33T \Draft Minutes 4 13 10.doc Gull and Curlew paved because they are horrible. He asked the Board when the paving was supposed to start again and was told according to the Contractor's schedule, the end of May. D. Symmons thanked G. Spalinger for getting back on the Board. He told C. Lorenson he did a great job and he wished he had asked him a lot more questions. He said he was really glad T. Martin decided to get on the Board. He recognizes personal attributes, the input, and diverseness of the Board. He stated he was grateful that both T. Martin and G. Spalinger were both on the Board and was sorry that he hadn't gotten as involved as he could have. He believed the Board missed the boat on a few things and didn't want to see another couple months go by without an attempt of a meeting. It didn't re i t the responsibility that they had taken on to be on the Board. He wasn't looking fo • the veterans checking out too soon, due to the gap of knowledge between them and , guys. K. Arndt welcomed G. Spalinger. He said he w felt he should have stayed for the meeting. it more than it was and worked it well. He contractor and knew they kind of double t were fortunate for the mild winter, which sa rates were much higher, but the and needed t at 52% of their budget. He wel willing to step up and take the Vi out of town to ask questions of any what he needed to do. He stated he more residents ste Board m C. Lorenson told He welcomed S. A 12. Th 13. Adjo There being no ppoi T. Bonney's behavior and C. Lorens • t he did a great job, made C. Lorenson wo well with the him at times, but h well. He said they e Sery • rea mone -n though the watch their as they were . Martin to sition. membe off th and and was glad t• see he was him not to hesitate, if S. Arndt is o what needs to be done or d, but wouldn't until he saw reciate • oards supp.` over the last couple of years. d welcom Spalinger back on the Board. uled for Tuesday, May 25, 2010. before the Board the meeting was adjourned at 8:18pm. C: \Documents and Settings \njavier \Local Settings \Temporary Internet Files \Content.Outlook \T4MFH33T \Draft Minutes 4 13 10.doc Submitted By: Mary J. Barber Engineering/Facilities Approved By: Charlie Lorenson, Chair Service Area No. 1 Date: Date: C: \Documents and Settings \njavier \Local Settings \Temporary Internet Files \Content.Outlook \T4MFH33T \Draft Minutes 4 13 10.doc BOARD APPLICATION NAME: �--c. t� /3 v HOME PHONE: 6" 3 3ze1 WORK : 6 - 3Z 3 y E -MAIL: ,41 Sk S s Cd {1 STREET ADDRESS: 3 6 6 C- l'e w MAILING ADDRESS: P v E, x 2 LENGTH OF RESIDENCE IN KODIAK: A O y ARE YOU A REGISTERED VOTER IN KODIAK? ARE YOU A PROPERTY OWNER IN KODIAK? COMMUNITY ACTIVITIES: C Ar Vi � .- r C f PROFESSIONAL ACTIVITIES: AREA OF EXPERTISE AND /OR EDUCATION: 1. See 3. Signature Kodiak Island Borough Office of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9310 Fax (907) 486 -9391 EMAIL: njavier @kodiakak.us 4. IN ALASKA: C4 ( ) e) Ii, *Poo ✓L� Date • NO( ) NO() OCT 2 7 2009 I AM INTERESTED IN SERVING ON THE FOLLOWING BOARD(S) (List in order of preference) 2. A resume or letter of interest may be attached, but is not required. This application will be kept on file for one year, Please retum the application by the advertised deadline. - STAFF USE ONLY - Voter ID No Verified > / Documentation: Appointment Letter: Applicants Residence; ` ah my( ) Raster: Dote Appointed: Oath at OffiOe: Term Expires on: Financial Disclosure: Comments: BOARD APPLICATION Gite- SP l* HOME PHONE: +!O' c5 WORK : C /% 3 2 S E -MAIL: tL2, /i k Sk J7 STREET ADDRESS: AO '{ (2C CAP i j) • MAILING ADDRESS: O 7< c , 3 c LENGTH OF RESIDENCE IN KODIAK: 3 orfrw IN ALASKA: ARE YOU A REGISTERED VOTER IN KODIAK? YES 4- ARE YOU A PROPERTY OWNER IN KODIAK? YES NAME: COMMUNITY ACTIVITIES: 1%57L me /46 vr o rDh l C S Se »/ F1 & t c4 -00n /3- '& 1 , Se,.o..ice 5 PROFESSIONAL ACTIVITIES: s tin c othm,�ep -1-op B 14,5MnP �. AREA OF EXPERTISE AND /OR EDUCATION: 1 AM INTERESTED IN SERVING ON THE FOLLOWING BOARD(S) (List in order of preference) 1.gemcct ni c -t c + I 2. 4. re A resume or letter of interest may be attached, but is not required. This application will be kept on file for one year. Please return the a r r I!cation by the advertised deadline. � 1 - STAFF USE ONLY Voter ID No Verified :. " / Documentation: Appointment Letter. AppNcanCa Residence; 9h N aty () Roster: Office: Date Appointed: Oath Term Expire$ on: Financial Disclosure: Comments: ■ diak Island Borough ffice of the Borough Clerk 710 Mill Bay Road Kodiak, Alaska 99615 (907) 486 -9310 Fax (907) -486 -9391 EMAIL: njavier @kodiakak.us if-ii-oq Date iri p!oyajh C(,f J,,e,4 . n om( Kevin Arndt PO Box 2338 Kodiak, AK 99615 Dennis Symmons PO Box 8957 Kodiak, AK 99615 KODIAK ISLAND BOROUGH SERVICE AREA NO. 1 BOARD NAME Scott Arndt (Chair) 2011 481 -3745 486 -3745 486 -0500 sIa3745(a�yahoo.com PO Box 76 481 -3333 (Pager) Kodiak, AK 99615 (Fax) Charles Lorenson 2012 486 -5975 539 -1506 wildiris(a�ptialaska.net PO Box 1947 Kodiak, AK 99615 2010 486 -1045 654 -1045 Alan Torres 2012 486 -0217 486 -9345 arii.torres(@Nahoo.com 2746 E. Rezanof Drive Kodiak, AK 99615 2011 486 -2629 486 -3215 garyimiturk(cr�yahoo.com 2010 Gary Turk Martin (Vice Chair) PO Box 2096 Kodiak, AK 99615 TERM HOME PHONE Vacant WORK CELL PHONE PHONE 2011 486 -9799 539 -2500 tcmk55yahoo.com 486 -5573 486 -6650 (Fax) (Pager) This board is governed by Kodiak Island Borough Code 4.70 STAFF: EF DIRECTOR, WOODY KONING 486 -9343 wkoning @kodiakak.us EF SECRETARY, MARY BARBER 486 -9343 mbarberAkodiakak.us ENGINEERING AND FACILITIES DEPARTMENT 710 MILL BAY ROAD ROOM 224 KODIAK, AK 99615 EMAIL Revision Date: 4/14/2010 Revised by: JK TITLE: Declaring a Seat on the Planning and Zoning Commission Vacant. SUMMARY: Ms. Lori Ryser submitted the attached notice of resignation from the Planning and Zoning Commission on April 14, 2010, for a term to expire December 2011. 2.100.070 Vacancies. A. Other than by expiration of the member's term, the assembly shall declare a seat vacant when a member: 2. Resigns and the resignation is accepted; D. In the event of a vacancy on a board, committee, or commission for any reason other than normal expiration of a term of office, the clerk shall cause notice thereof to be published at least twice in a newspaper of general circulation within the borough. The notice shall set forth the vacancies and any qualifications of members. The appointing authority shall appoint a new member for the remaining unexpired term in accordance with KIBC 2.100.030. FISCAL NOTES: N/A Account No.: Amount Budgeted: Expenditure Required: APPROVAL FOR AGENDA: RECOMMENDED MOTION: Move to accept, with regret, the resignation of Ms. Lori Ryser from the Planning and Zoning Commission for a term to expire December 2011 and direct the Borough Clerk to advertise the vacancy per Borough Code. Form Ver. 06/30/2009 KODIAK ISLAND BOROUGH AGENDA STATEMENT MAY 6, 2010 REGULAR MEETING d -4° ITEM NO: 13.D.2 April 14, 2010 Lori Ryser PO Box 8908 Kodiak, AK 99615 Dear Planning & Zoning Commissioners and KIB Community Development Staff, I am writing to you today to officially tender my resignation from the Planning & Zoning Commission effective immediately. A position of a Commissioner is very important to the community and especially to the people of the community. I feel that the people of Kodiak deserve a person that can dedicate as much time as possible to making the very best decision for each case. Over the winter months my work Toad has increase dramatically. With the upcoming busy season at my day job with the Dept. of Fish and Game and in the evenings and weekends helping my husband with the bookkeeping for his construction business, I feel that I would be doing a disservice for the people of Kodiak by not being able to dedicate the time needed to studying each case presented to the Commission. I send my apologies to the Commission as I know this next year will be dedicated to the rewrite of the codes which is going to require a lot of work. I have enjoyed working with each of you and have enjoyed getting to know each of you. I hope that in the future, when my life slows down and perhaps only have one full -time job, that I may have a chance to be a Commissioner again. Sincerely, Lori Ryser ACTION ITEMS: KODIAK ISLAND BOROUGH SCHOOL DISTRICT Board of Education Special Meeting — April 5, 2010 SUMMARY APPROVED: Motion to approve a 2010/2011 full -year leave of absence for Speech/Language Pathologist Tina Clumpner, KELP (Kodiak Extended Learning Program) Teacher Balika Haakanson, Kodiak Middle School Counselor Theresa Miller, Kodiak High School English Teacher Katrina Stewart, and School Psychologist Amy Sundheim. APPROVED: Motion to approve a certificated contract for the remainder of the 2009/2010 school year to Meagan Mickelson — BA +0/0 in the amount of $8,075 plus $242 village stipend for 1.0 FTE teacher at Old Harbor School for 37 days and to Roy Thomas — BA +0/0 in the amount of $12,004 plus $360 village stipend for 1.0 FTE teacher at Danger Bay School for 55 days. APPROVED: Motion to approve purchase requisition number 00023051 to Key Curriculum Press for Kodiak High School mathematics program materials in the amount of $47,361.05. APPROVED: Motion to adjourn. Subsequent to approval, Board of Education meeting minutes are posted on the District's website at www.kodiakschools.org. ROLL CALL PARKS & RECREATION COMMITTEE REGULAR MEETING MARCH 23, 2010 7:00 p. MINUTES Page 1 BOROUGH CLERK'S OFFICE CALL TO ORDER CHAIR SIROFCHUCK called to order the March 23, 2010 Parks & Recreation regular meeting at 7:00 p.m. Committee members present were: Mike Sirofchuck, Pam Foreman, Hans Tschersich, Patrick Saltonstall, and Sandra West. Excused were Jeff Huntley, Rick Lindholm, and Willy Bethea. Ex officio members present were Peggy Rauwolf and Casey Janz. A quorum was established. Community Development Department staff present was Bud Cassidy and Sheila Smith. VICE CHAIR FOREMAN MOVED to excuse Jeff Huntley, Rick Lindholm, and Willy Bethea. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY APPROVAL OF AGENDA COMMITTEE MEMBER SALTONSTALL MOVED to approve the March 23, 2010 agenda. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY MINUTES OF PREVIOUS MEETINGS VICE CHAIR FOREMAN MOVED to approve the March 9, 2010 Parks & Recreation Minutes. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY AUDIENCE COMMENTS AND APPEARANCE REQUESTS There were no audience comments or appearance requests. OLD BUSINESS A) Trails Plan /Preparation for Public Meeting Cassidy stated the trails plan website has the winter trails map which was based on information that Alta had gleaned from the different interviews held. The May 18th public meeting will be at North Star School at 6 p.m. The consultants are talking about setting up a number of tables and having breakouts to talk about maybe trailheads, connections between trails, and such. In response to CHAIR SIROFCHUCK'S inquiry if Alta has reached out to Leisnoi to invite them to participate in the meeting or to meet with Alta, Cassidy stated they were going to meet with Leisnoi, Ouzinkie, and with the native corporations this time. In response to VICE CHAIR FOREMAN's inquiry if May 18th is just focused on winter, Cassidy said no, it's the coming out, the big public meeting to try to talk about where we have come since we started this and what we need to do. It will give us direction. During discussion Cassidy said he will have Alta give us an agenda. CHAIR SIROFCHUCK stated flyers will be put around town, an ad in the newspaper, email announcements, and radio stations. He also suggested using the scanner channel on TV. In response to Amy Wagner's suggestion of having the newspaper do an article, Cassidy stated he will call the paper to try to get an article in the paper. Discussion. The committee encouraged the public members present to submit their mapping to the consultants. B) Borough /City Coordination in Parks Development and Maintenance Cassidy stated the issue with moving soil to the KANA fields is no longer an issue. It's a sandy /wood chip /sawdust mix that's not working well. They will redo the field with grass to make it more useable. Fulp has a contract out to try to improve the field. The issue behind Safeway and Threshold is going to be looked at as a transfer station which the Assembly will give direction. There is some money so we can help fund some upkeep of the fields and maybe Island Lake Trail. Brief discussion of possibly having the city take over the maintenance for all borough parks. Amy Wagner suggested having manpower to patrol the parks because Fulp is often called and asked for requests for officers to go by the parks to kick people off the field. NEW BUSINESS A) FY 2011 -2015 CIP In response to VICE CHAIR FOREMAN'S inquiry of where are we with the North Star walking trails, Cassidy stated the funding is from 3 different sources, and right now there is an RFP to look at the cost of extending not just the trail from Bayside Fire Station up to along Otmeloi up to North Star but also to pave and install lights. We have $3.3 million for that project. There's re- alignment on the backside as you hit Peninsula Drive and drainage that's problematic. Then there's $1.7 million, a Federal earmark for coming up over Lilly Drive going over Island Lake Creek and up to North Star. The state took the money over based on discussions with North Star School; their priorities are the narrowness of the road as it goes over Island Lake Creek, the curve as you head from Lilly into Antone and then Mallard Way. The $1.3 million had to be used by a certain date or returned. They sent over surveyors and the only thing we got out of it was the trail over the creek. During discussion it was the consensus to keep the list as is. VICE CHAIR FOREMAN MOVED to move the 2010 Parks & Recreation CIP list forward to 2011. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY Parks & Recreation Committee 2011- 2015 CIP List 1. Parks & Fields Plan 2. Multi- Purpose Fields Construction (KANA, East, Softball Complex) 3. Mill Bay Beach Site Plan & Construction 4. Bike Path Extension (Marine Hill - White Sands) 5. White Sands Beach Improvements 6. Womens Bay Boat Ramp 7. Three (3) Walking Tails to North Star 8. ATV Park 9. Fairgrounds Improvements Page 2 4 B) Exxon Valdez Oil Spill Trustees Supplemental EIS CHAIR SIROFCHUCK stated EVOS received Exxon settlement money and they're looking to spend down the remaining funds. They've done a supplemental EIS and the 5 areas they are looking at are: Herring, lingering' oil, long term monitoring, harbor protection, marine restoration and habitat acquisition. They have about $24 million. In the past this committee as well as other bodies in Kodiak has lobbied EVOS and Leisnoi to sell Long Island and Termination Point for EVOS to acquire habitat acquisition funds with the idea it would be turned over to the State for State Parks to manage it. The deadline for comments is April 1St. Sirofchuck requested the committee reiterate their support for using habitat acquisition funds to purchase Termination Point and Long Island. Cassidy stated he will have to find out if a letter can be sent and then email you. Discussion of whether to have CHAIR SIROFCHUCK draft a letter that says we support habitat acquisition and other areas available for purchase. COMMITTEE MEMBER WEST MOVED if permissible Mike Sirofchuck draft a letter of recommendation to EVOS trustees from the Kodiak Island Borough Parks & Recreation Committee. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY COMMUNICATIONS There were no communications. REPORTS Meeting Schedule: • March 25, 2010 P &Z /P &R Quarterly Update to the Assembly at 7:30 p.m. in the KIB Conference Room • April 13, 2010 Parks & Recreation Committee meeting at 7:00 p.m. in the KIB School District Conference Room • April 27, 2010 Parks & Recreation Committee meeting at 7:00 p.m. in the KIB School District Conference Room AUDIENCE COMMENTS Curtis Howell inquired about who will maintain and plow the bike path when it is built? COMMITTEE MEMBER WEST stated she was thinking of not plowing it because it would make a great cross country ski trail. She also said it won't need much maintenance. Amy Wagner asked why it's so important to distinguish between each trail because a lot of people are under the impression that you exclusively make certain trails ATV free or hiking only. Is this something you are looking into to exclude certain groups from certain areas? CHAIR SIROFCHUCK said right now we are just trying to get an inventory of who uses the trails and what trails are out there. There is no hidden agenda. Amy Wagner asked about people with concerns regarding erosion because she knows of specialty groups that are saying this erosion is because of 4 wheelers while they're making $20,000 on a bear hunt. They want to close down whole areas so they have a monopoly on them. Will you be taking into consideration erosion? VICE CHAIR FOREMAN said the consultants are very good at identifying standards and what kind of soil you are on, and what kind of trail do you need to build so it's sustainable, Page 3 so erosion does become part of the conversation because that's part of what we need to plan for; how to fix those trails. The overriding intent from everyone is to do our best to make access to as many of the recreational areas that we have. COMMITTEE MEMBER'S COMMENTS Pam Foreman stated we all should be commenting on EVOS individually. Casey Janz feels the same as Foreman. Hans Tschersich said sometimes we are blessed that our trails are so poorly maintained because in Eugene the trails are wonderful but there have been several people who have been run over and killed by bicycles. Sandra West said if we don't have a plan then it's just this committee that has very little power sharing our opinion. If we have a plan when we ask for money we have something solid that gives the community more power. We are glad you are here and we need you to be involved for many years. Peggy said the Parks and Rec meets twice a month so text your friends. Don't forget May 18th at 6 p.m. the public meeting Mike Sirofchuck thanked everyone and reminded them to email EVOS. Patrick Saltonstall asked what happened with the airport EIS. Mike Sirofchuck stated he called Leslie Gray who was out of town but the consultant sent him an email saying they're reviewing the agency comments now and thought in July or August the draft EIS will be coming out. Sirofchuck plans on contacting him to say it wouldn't be acceptable and that they should be thinking about September. ADJOURNMENT VICE CHAIR FOREMAN MOVED to adjourn. VOICE VOTE ON MOTION CARRIED UNANIMOUSLY CHAIR SIROFCHUCK adjourned the meeting at 8:30 p.m. ATTEST By: \ (:)4.12q ` 3 Sheila Smith, Secretary APPROVED: April 13, 2010 Page 4 KODIAK I ND BOROUGH P & RE ' E ON 0 MMITTEE ,AR Mike S ofchuck, Chair 5. Meeting Schedule Service Area No. 1 Board Special Meeting February 8, 2010 7:00 pm KFRC Conference Room 4. Consideration of Matters in the Call for the Special Meeting: A. Recommendation of Board Members to Service Area No. 1 Board. N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 2.8.10.doc APR 1 4 2010 1. Call to Order Chair C. Lorenson called the meeting to order at 7:10 pm. 2. Roll Call M. Barber called the Roll and Present were Board Members K. Arndt, S. Arndt, C. Lorenson, D. Symmons and A. Torres. 3. Approval of Agenda It was Moved, S. Arndt and seconded to Approve the Agenda. Motion Carried by an affirmative voice vote. It was Moved, K. Arndt and seconded to recommend to the Assembly to appoint Tuck Bonney to the vacant seat for a term to expire October 2011. Motion failed by a roll call vote. Those voting yes were K. Arndt, C. Lorenson and the nays were S. Arndt, D. Symmons and A. Torres. It was Moved, S. Arndt and seconded to recommend to the Assembly to appoint Turk Martin to the vacant seat for a term to expire October 2011. Motion Carried by a roll call vote. It was Moved, A. Torres and seconded to recommend to the Assembly to appoint G. Spalinger to the impending vacant seat for a term to expire October 2010, provided that no other board applications are received prior to the regular meeting scheduled on March 4, 2010. Motion failed by a roll call vote. Those voting yes were S. Arndt, D. Symmons, A. Torres and the nays were K. Arndt and C. Lorenson. Next combination work session/regular meeting was scheduled for Friday, February 12, 2010. The combination regular meeting/public hearing was scheduled for Tuesday, March 9, 2010. 6. Adjournment There being no further business before the Board the meeting was adjourned at 7:25p.m. Submitted By: Mary J. B Engineers " acilities App harlie Lorenson, Chair Service Area No. 1 N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 2.8.10.doc Date: 4 Date: 3. Approval of Agenda 6. Chair Report Service Area No. 1 Board Work Session /Regular Meeting 12 February 2010 7:00 pm KFRC Conference Room 1. Call to Order Chair C. Lorenson called the meeting to order at 7:37 pm. 2. Roll Call N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 2.12.10.doc APR 1 4. Acknowledge Receipt of the Financial Report It was Moved, S. Arndt and seconded to Acknowledge Receipt of the Financial Report. 5. Visitor Comments Present were Board Members S. Arndt, Chair Lorenson, D. Symmons and A. Torres. K. Arndt was excused. It was Moved, S. Arndt and seconded to Approve the Amended Agenda with the addition of Budget under New Business. Motion Carried by an affirmative voice vote. T. Martin asked G. Spalinger why he wanted to be on the Board. G. Spalinger stated that when he was on the Board last they drove every road in the Service District and if they were to drive the roads today a lot of the projects didn't get done. There was a lot of ditching and a lot of culvert stuff that didn't get done and he'd like to see the projects get done. He told the Board there was a ditch that was supposed to be put in over on Parkside because water was running down the road and it wasn't a big project, just dig a ditch and put a culvert in, but it didn't get done and it's been 5 or 6 years. He wants to see the small projects get done and he told the Board they should drive around every year and make a list of projects that need to get done. Chair Lorenson told the Board that there were some stop signs missing which were replaced and there were child playing signs put out. He said there was a manhole on Beaver Lake that was up and the grader was going to take it out, so they put some D -1 over there and took care of it. They ditched out an area at St. Elias Ct which is draining now. The normal sanding & grading was being done. He told the Board the week before Brechan's sander broke down during the bad snow storm, but fortunately he was able to call in another contractor to take care of the sanding. Chair Lorenson said Mike Pfeffer's fence, that Brechan plowed snow into last year was in the right of way, but the problem the homeowner was having was the contractor wouldn't contact him back. He asked the Board what they would like him to do and be was told things are to be handled on a case by case basis, to take care of them and if the Chair had problems to bring them back to the Board for a decision. S. Arndt told the Board that if the Borough Assembly agreed they would use excess funds out of the Sharatin, Puffin, Curlew and Gull paving project. There was concern that there wouldn't be enough funds to do it, so S. Arndt was trying to fashion a proposal of the service district matching the Borough 50/50 not to exceed $65,000 dollars, but should the project come in over budget the Board would need to look at where their current year surplus was and see what, if anything they could roll forward in a budget adjustment to cover the additional cost. S. Arndt said his discussions with Brechan and the Borough was to remove and replace the asphalt. 7. Old Business a. Paving of Selief Chair Lorenson told the Board that between S. Arndt and himself they were hoping they could get a price from Brechan and move the paving project forward. b. District Signs (Children Playing, Stop Signs) Chair Lorenson told the Board the missing stop signs and children playing signs had been taken care of. D. Symmons told the Board when driving around the service area to look for missing signs and report them to the Chair, so they can get replaced. 8. New Business a. Puffin, Curlew & Gull Paving Timetable Chair Lorenson said the timetable for the paving project was in the Boards packets so they would have an idea of when work was to begin again and would be able to let people know if asked. He told the Board he was upset the project didn't get done when it was supposed to, but said that's the way it goes. Some points that were made: Budget — Over or Under, Paving of dumpster pads and driveways, culvert replacement, manhole covers. b. Budget FY2011 It was Moved, S. Arndt and seconded to forward the Draft Budget for FY2011 to the public hearing being held March 9, 2010. Motion Carried by a unanimous voice vote. 9. Visitor Comments None N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 2.12.10.doc 10. Board Member Comments S. Arndt thanked T. Martin and G. Spalinger for corning to the meeting. A.Torres told the Board even though they don't meet often, since there were new Board Members he thought it would be a good idea to get Parliamentary Procedure information from the Clerk's office. D. Symmons said as instrumental as the drive around was, it had already been too long since they had done it and needed to get out there again. He hoped that much time didn't go by before they got out there and he would like to see the Board get together as a group as they had in the past. C. Lorenson echoed S. Arndt's comments in thanking T. Martin and G. Spalinger for coming. He said he was looking forward to having a fresh face on the Board and supports new outlook. 11. Meeting Schedule The next Regular Meeting/Public Hearing was scheduled for Tuesday, March 9, 2010. 12. Adjournment There being no further business before the Board the meeting was adjourned at 8:03pm. Submitted By: sties Mary J. Bar Engineerin Approve A C W Loren Chair Service Area No. 1 N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 2.12.10.doc Date: LI- Date: L- 1 '3 I l 1. Call to Order S. Arndt called the meeting to order at 7:10 pm. 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes None 5. Public Comments None 6. Public Hearing a. FY2011 Budget 7. Old Business None SER\"10E AREA NO 1 BOARD REGULAR MEETING /PUBLIC HEAR March 9, 2010 7:00 pm KFRC CONFERENCE ROOM N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 3.9.10.doc J. Basuel called the Roll and Present were Board Members K. Arndt, S. Arndt, D. Symmons, T. Martin and A. Torres. It was MOVED, A. Torres and seconded to excuse Chair Lorenson. It was Moved, D. Symmons and seconded to Approve the Amended Agenda striking Acknowledge Receipt of Financial Report and Chair Report as neither were presented. Motion Carried by an affirmative voice vote. Prior to closing the Regular Meeting and opening the Public Hearing S. Arndt explained to the Board the figures for the FY2011 budget. There was discussion about the monies for the Selief paving project, special assessment district to recoup money and additional money from the Borough. S. Arndt closed the Regular Meeting and opened the Public Hearing. Seeing and hearing no public, the Public Hearing was closed. It was Moved, A. Torres and seconded to Approve the FY2011 Budget and to forward it onto the Assembly. Motion Carried by a roll call vote. 8. New Business a. Recommendation to the Assembly to Appoint Board Member D. Symmons recommended G. Spalinger to the impending seat. K. Arndt recommended T. Bonney to the impending seat. Discussion followed. It was Moved, A. Torres and seconded to postpone until the Boards next Regular Meeting the recommendation to the Assembly to appoint a Board Member to the vacant seat. Motion Carried by a unanimous voice vote. 9. Public Comments None 10. Board Member Comments D. Symmons said he trusts the Boards decisions. A.Torres told the Board he was asked about a couple dead end roads that aren't incorporated into a service district, which means their roads aren't being taken care of, but they would like the opportunity to be. G. Martin said he was concerned about past issues and wondering if they were resolved. He asked about the background on roads in the district that don't pay taxes for road service. K. Arndt welcomed G. Martin to the Board. He appreciated the Board postponing the recommendation until the next regular meeting. S. Arndt - None 11. Adjournment The next Regular Meeting was scheduled for Tuesday, April 13, 2010 @ 7:OOpm. There being no further business before the Board the meeting was adjourned at 8:10 p.m. N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 3.9.10.doc Submitted By: 4 �• ate, Mary J. Barbe Engineering/F . 416 ties Charlie Lorenson, Chair Service Area No. 1 N: \EF \Service Districts \Service Area No. 1 \Minutes \2010 \Draft Minutes 3.9.10.doc Date: y ( Date: L\--(t 3 It o Board Members Present Not Present Excused Harrington, Cindy ✓ Martin, Turk ✓ Owen, Marion ✓ Szabo, Nick ✓ Tracy, Donn ✓ Mahoney, Ed ✓ Niziol, Sebastian ✓ CaII to Order SOLID WASTE ADVISORY BOARD REGULAR MEETING MINUTES February 3, 2010 @ 5:15 PM Borough Conference Room Chair Harrington called to order the Regular Meeting of the SWAB at 5:15pm on February 3, 2010 at KIB Conference Room. RoII Call M. Barber conducted a roll call and a quorum was established. The following persons were present: Also in attendance were: C. Mahoney, Alaska Waste, Dr. Bob Johnson, Ex- Officio Member: Chris Lynch and W. Koning, Kodiak Island Borough. Reading of Mission Statement To assist and advise the Borough Assembly in identifying solutions to solid waste management by collecting and reporting varied viewpoints, sponsoring public outreach, and developing specific projects with a focus on waste reduction, reuse and recycling. Approval of Agenda It was Moved, E. Mahoney and seconded to Approve the Amended Agenda to remove Election of Chair & Vice -Chair until a full Board was present. Motion Carried by a roll call vote. N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc Approval of Previous Minutes — September 2, 2009 & November 4, 2009 It was Moved, E. Mahoney and seconded to Approve the Minutes of September 2, 2009 and November 4, 2009. Motion Carried by a unanimous voice vote. New Member Welcomes /Introductions Board members introduced themselves, told how long they had served on the Board and explained why they chose to be on the Board. Visitor Comments Dr. Bob Johnson told the Board he was there to see how the Board felt about where they were in the process and he thought he heard they felt positively of where they were. He hears mention of contentious issues and he felt every issue that was presented that involved significant change was contentious. He believed it was more about the change then it was about the mechanics of the issues that leads to the sometimes flagrant disagreements or criticism and doesn't feel there's any place for that. He said Boards are assigned projects, they assume the responsibility for that, work very hard at it for quite some time, maybe years and come up with a solution that's been open to the public all along and what happens many people haven't noticed or paid attention and when the proposed solution comes out it always or seems to more and more result in objections. He said he thought people looked at their own situation rather than the total picture and that's what leads to contention, but didn't think it was an issue and didn't feel it was the way it was handled. He said he thought the way the Board was preceding was very good. He said to accept what they had and to believe in their contractor, who seemed to be quite intelligent and willing to work with them in the future. Reports — Educational Outreach M. Owen told the Board that KMXT invited C. Harrington and herself on Talk of the Rock forum after the joint work session with the Assembly. They discussed things that were brought up during the meeting. She said it's difficult to be live on the air and think on your feet, you may not always get everything right, but you do the best you can. W. Koning said they did a great job. Old Business a. Letter to Assembly recognizing KMXT's community contribution re: the 3 R's It was Moved, D. Tracy and seconded to approve the letter to the Assembly recognizing KMXT's community contribution re: the 3 R's. Discussion followed. Motion Carried by a roll call vote. N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc b. Letter to Assembly in support of curbside collection contract It was Moved, M. Owen and seconded to forward the letter to the Assembly with changes in wording. Discussion followed and some points that were made were viewing the contract, change in wording in letter, role of the Board, purpose of letter and moving forward with support to the Assembly. Motion Failed, 3 yes votes, C. Harrington, M. Owen and S. Niziol, 1 no vote, E. Mahoney and 2 abstained, D. Tracy and T. Martin. c. Resolution for Recycling Initiative Chair Harrington explained the history to the new Board Members. It was Moved, E. Mahoney and seconded to postpone the Resolution for Recycling Initiative to the next meeting. Motion Carried by a unanimous voice vote. New Business a. Approve meeting schedule Chair Harrington explained to the new Board members the requirements of the Board to meet in KIBC section 2.145. It was Moved, E. Mahoney and seconded to adopt a new meeting schedule to meet at least once a quarter. Discussion followed and some points were; who can call a meeting, attendance policies, special meeting, bylaws and quarterly meetings. Motion Carried by a roll call vote. Visitor Comments None Board Comments D. Tracy thanked Chair Harrington for taking time to provide T. Martin and himself with orientation. He also thanked M. Owen for writing the letter even though it didn't pass, he said he just didn't feel it was appropriate for him to vote on it, but he appreciated the fact that she made the effort to write it and wanted to acknowledge it. M. Owen told the Board she had issues the last couple of weeks with some of the comments that Board members made in public and was pleased to see what N. Javier sent to them as far as what was appropriate for Board members to say "I'm speaking as a private citizen and not as my role as a member of a Board." She thought the information provided by N. Javier was very appropriate with what was aired on KMXT and what showed up in the Daily Mirror recently. In particular she was interested in number 3: A majority vote decides an issue and any group, each member agrees to be governed by the vote of the majority. She recalled when J. Selby spoke to the Convention and Business Bureau Board and said the intention of being on a Board was to N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc work as a team as a group and if that group decides on anything it's not their (the members) place to publicly tear down the vote the majority of the group had agreed to. Somebody told her recently on another issue that it's a lot easier to tear down than to build up. A case in point was an interview aired on KMXT with D. Tracy, which peaked her interest because she wasn't sure if what he was saying was true. She said she went online to KMXT and transcribed the MP3 file that they had and wrote it down. She stated she did what she felt they all should do as a member of any Board, which was: before you speak out you should check your facts and the proper way to do that was to contact staff because they're supposed to know; whether they're City or Borough, whatever the issue. She said she went to staff with some of the comments that were made and asked if they were true. She felt if you're going to air comments or get quoted in the newspaper, you have a responsibility to the best of your ability to voice what was true, otherwise the ramifications are confusion and a very divisive community and people that don't know what's right and what's wrong, who to believe or who to trust. As an example, she quoted D. Tracy in saying costs had actually increased substantially over the last several years. She asked staff if that were true and was informed the residential and commercial rates were last increased in July 2003. These rates had not been increased before that since 1996. Commercial dumpster rates increased again in July 2005, fees charged up until these increases did not accurately cover the cost for the landfill maintenance (it's an enterprise fund and like a business the P's & Q's have to add up) and closure post closure needed for regulatory compliance as well as escalating collection costs were necessary, at the time it was just an automatic 2 %. She told the Board another statement that D. Tracy made was that it seems the cost of solid waste disposal keeps increasing and under the proposed contract it doesn't appear there are any assurances to cap any of the costs. It remains to be seen if the Borough will generate enough revenue in dump fees at the landfill to match the revenue received in the current contract and he would like to see the Borough and the Assembly if they decide to vote for it that they give that contained cost and give the community assurance that fees won't substantially increase during the seven year period of the contract. She said that's when she learned that because the landfill was an enterprise fund, like a business the fees cannot be capped. She stated for a Board member to give their opinion in public without really knowing the facts was very hard on a community like ours. She suggested the SWAB disband, because she felt they had done their purpose and had done their work and she thought if anyone on the Board didn't want to work as a team or had their own agenda they should resign or don't say anything that wasn't true or that the Board had voted on as a group. E. Mahoney said he didn't hear any of that stuff, but he concurred that the rates had gone up. He felt another issue in talking about D. Tracy was he wasn't sure if he was a Board member at the time and felt it was nitpicking to clobber someone at their first meeting. He told staff he appreciated the report at the last meeting he attended of where they were and hoped it would N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc be on a continuing basis. He welcomed D. Tracy and T. Martin to the Board and said he looked forward to working with them. T. Martin said he was curious about the protocol of the Board member comments. He said all Board members in some respect have personal agendas for certain topics. If they could convince him, because he cared about what was going on he would be able to go out and try to convince other people. He stated his water, sewer and garbage was all lumped together and over the last five years he believed it had gone up $35 or $40 dollars, but he felt they were digressing because everything had gone up. He said he was happy to see where the Board goes from here and doesn't think they should disband. C. Lynch said she thought it's important to read N. Javier's memo to them. She thought it should be taken to heart that when you step up to sit on a Board, regardless of your own opinions you become a team member and she thinks it's a slap in the face to the rest of your team because it is majority rules and you're trying to convince the rest of the players what you're doing. She thinks they need to provide a united front as a Board and it's very important that if you don't understand something or have questions before individuals make public comments they really need to think about how that affects their team as they are Solid Waste Advisory Board members. She wanted people to understand they were a team and she hoped people took that seriously. S. Niziol said the Board had an important role to play, not necessarily looking at the fine details of contract work which was the issue he had earlier with the letter that they don't have a role in coming up with the contract and working on that but they want to have broad plans for the community and the direction that they want to move the community forward and make those recommendations to the Assembly and of course the role of trying to inform the community at large. He said when it came to the letter from N. Javier regarding speaking as individuals and not as members of the Board, while he agrees that they need to work as a team and recognize that they are working as a team, when the Board comes up with a resolution they need to be able to present that as a Board, but as an individual regarding the letter outside the meeting they do not follow Robert's Rules, parliamentary procedures is within the meetings not outside and when it comes to matters of personal opinion when you're outside the meeting itself he felt it was important that they are able to still offer their differing opinions. While they have the opportunity to present their opinions during the meeting, which is important they could see in their attendance record there are very few people that attended the meetings outside of the Board members and not much of what was discussed at the meetings ends up in the public's view, whether it be in the media. He didn't feel the public, not that they didn't care, they don't have access to it. He said when the media comes to them as individuals requesting their opinion he thought it was important to still be able to offer their opinions, but with that in mind N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc knowing that they are part of a Board at least be able to present the Boards view as well, because this was a matter of public concern. W. Koning told the Board he was pretty positive of the steps they were going to take. He was very pleased with the contractor and his experience and his approach. He said that he thought what had happened here historically was that someone said our garbage system was a mess and what's happened lately since he's been involved was our garbage system was a mess, the Assembly said we need to do something about it and directed staff to hire a consultant to help them come up with a plan, which staff did and passed it by this Board for all these different opinions and different ideas. The plan was presented, changed and amended then finally approved by the SWAB, then it went to the Assembly and they approved it. He stated we didn't have all the answers, but the consultant that helped them produce the plan told them that this was their recommendation looking at it as economist, lawyers and engineers. This was what they thought was the Borough's best approach to improving their solid waste plan, but the numbers are estimates, the costs that were being presented were estimates and they wouldn't know what the numbers were and the costs until you get an RFP out there and select a contractor that's going to be speaking with his wallet, he's saying he can do that. He said there were so many solid waste experts in the community it was amazing. The contractor that comes in and says he can do this scenario for this amount of money and he's willing to sign a contract for that amount is what the Borough was waiting for and they got that in the contractor and luckily, he thought they had a really good contractor. They are a solid company that's been around a long time. Kodiak residents think they're unique, our bears are bigger, there's snow and ice problem, there's long driveways and high winds, but he said he has a lot of confidence in the contractor; he's willing to be flexible and wants to work out those problems as they come up. They can continue in Board meetings and letters to the editor about what can't be done and what the problems are, but if they look at it with a positive attitude the human behavior is the key factor and he would hope that the Board could help with outreach and education so the public knows how to behave and to start taking responsibility for their trash and waste and pay their own way. The system that the Borough is working towards is a user fee scenario, if you only generate one can of garbage you pay Tess, it's fairer and more equitable. It's what they are doing all over the country and they're doing it in difficult places just like Kodiak. He told the Board he really appreciates all the time and effort that has been put in to get them to this point. It's not an easy thing and there will never be a scenario that everyone is going to love, but what their trying to accomplish is to provide a system that does the greatest good for the least amount for the entire group. Chair Harrington told the Board she appreciated everyone's commitment and your candor and having an opportunity to discuss what was on their minds. N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc M. Owen apologized to D. Tracy for stating his name. Chair Harrington said she totally agreed with W. Koning that the only way they're going to move forward is by positive outlook. The Board should represent consensus, it's the way they're supposed to do things. She told S. Niziol that she understood his question and understood the gray areas about public meetings and agree with some of that, how does it really drill down to how do I get to be two people, but where she differed from his opinion was when it came down to the media contacting them, personally she didn't think that that was when they are to offer their personal opinion, that's when they offer the consensus that they've agreed with the Board, because she felt their role was to positively move forward for all the reasons they've talked about. Their role is to be part of the solution, to move forward and help educate the community about why these decisions and choices are being made. The Board needs to make sure that the public doesn't feel they're being forced fed something, they need to let the public know they have access to information so that they can understand decisions that are made. People have come up to her and asked why aren't you doing the transfer station and I told them it's in the Plan to do later, they ask why aren't you doing recycling and I told them it's in the Plan to do later. Well I'd like you guys to do something else and she told them the Borough can do anything they want, but it's going to cost money. What the Borough was charged with was to hire an expert to do the most cost effective way to remove the garbage and that's what she keeps telling the public over and over. She told the Board she's been as frustrated as M. Owen with what has gone on with the process as late. She appreciated the memo N. Javier sent out to the Board and hoped she sent it to the Assembly as well. She sees the frustration at the Boards level of what can be said about the progress, but yet she has seen some outrageous behavior from some Assembly members that kind of surprised her, so the Board wasn't the only ones that were confused about how to represent consensus and how do they also have their own concerns and issues. She stated if she had issues with her icy, steep driveway she would take them up with the contractor once the contract was signed on an individual basis and I'm certainly not going to write a letter to the editor about those issues. She told the Board if she's still Chair at the next meeting she was really counting on them to be strong team members, because it makes her look ridiculous out there in the community when people say "Hey your part of SWAB, I've seen this in the paper and that in the paper, what's going on with you guys ?" She asked the Board to buckle down and show the other groups the right way to talk about consensus, the right way to move forward. If they didn't want to do the Plan they should have pulled the plug on it a long time ago and then what's another idea. This is where the community is going, there's a contractor that seems to be extremely knowledgeable and experienced. They said the Plan was a pilot, if it doesn't work they can go back to the drawing board. She stated for the Board to operate by consensus, take responsibility for how the public perceives our role, which is outreach and N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc education, facilitating what's going on with them and making it easier for them to understand what's going on. D. Tracy told M. Owen there's no need to apologize. He wanted to clarify his remarks and the context he stated they were made in public comments to the Assembly at a public meeting, he didn't identify himself as a member of SWAB, but as a private citizen and the affiliation was made by the Daily Mirror and then replayed on KMXT. He told the Board he had a long history of involvement in this process and totally agreed with M. Owen and others that if you use your position on a Board or any type of entity that is involved in Governmental affairs, it's egregious to use your position to undermine the consensus of the group and if you're going to do that you really don't have a place in the group because you're not representing the group you're representing your own personal individual agenda. He said you still have to allow people to have personal opinions within that capacity as long as they don't overstep their bounds and use good judgment and discretion. He stated if anyone heard his remarks, he didn't express opposition to the contract or opposition to any elements that had been endorsed by the SWAB. The main thrust of his comments were that he was concerned with the potential costs for services and the facts are that the Borough, again he didn't specifically state the cost increases were solely related to user fees, the facts are the amount of money the Borough has spent on solid waste disposal in the last three years has gone up almost exponentially, and the primary reason for that was the extension of the current contract with Alaska Waste that resulted in tremendous cost increases to the contractor. The Borough found it necessary to opt for those extensions because the solid waste management plan hadn't been finalized at that point and time. He said that was the context of his remarks specifically and in regards to what E. Mahoney said, even though he was a member of the advisory committee he hadn't participated in any of the activities of the Board and tried not to imply any affiliation with the group, but he completely agreed that once a group reaches a consensus on a particular issue if in your capacity representing that group you have to use good judgment and discretion because people would perceive your comments as representative of the group if you aren't careful. He said he's dealt with that his whole career working with the Dept. of Fish and Game. He appreciated the time to respond and wanted to clarify the context. C. Harrington told the Board the Borough had published a press release and asked the Board to work in a positive way with the media. She thanked the Board for their incredible commitment. W. Koning thanked M. Owen for her work in developing the press release. Meeting Scheduled The next regular meeting was scheduled for Wednesday, April 7, 2010, 5:15pm in the Borough Conference Room. N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc Adjourn There being no further business before the Board the meeting was adjourned at 7:20pm. SUBMITTED BY: A 1, . Mary J. Barb Se tary KIB Engineer! acilities Department APPROVED BY: Cindy Harri : on, Ch Solid Waste Advisory Board LP Date: `a1-1 (1(). Date: i fr7 N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \Minutes 3 Feb 10 Draft.Doc Board Members Present Not Present Excused Harrington, Cindy ✓ Martin, Turk ✓ Owen, Marion ✓ Szabo, Nick ✓ Tracy, Donn ✓ Mahoney, Ed ✓ Niziol, Sebastian ✓ Call to Order Roll Call SOLID WASTE ADVISORY BOARD SPECIAL MEETING MINUTES March 16, 2010 @ 5:15 PM Borough Conference Room Chair Harrington called to order the Special Meeting of the SWAB at 5:15pm on March 16, 2010 at KIB Conference Room. W. Koning conducted a roll call and a quorum was established. The following persons were present: Also in attendance were: Woody Koning, Kodiak Island Borough, also in attendance were Del and Shannon Green. Citizen Comments None Consideration of Matters in the Call for the Special Meeting a. Election of Officers It was Moved, E. Mahoney and seconded to nominate N. Szabo as Chair. Motion Carried by a Roll Call Vote. S. It was Moved, N. Szabo and seconded to nominate as Vice Chair. Motion Carried by a Roll Call Vote. Adjourn There being no further business before the Board the meeting was adjourned at 6:34pm. N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \16 March 2010 SUBMITTED BY: A'-1 .J∎021 Mary J. Barb,e retary KIB Engineering /Facilities Department APPROVED BY: N ,,V Szabo, Chair Solid Waste Advisory Board Date: Li', I Date: N: \EF \Baler Facility \Solid Waste Advisory Board \FY2010 \Minutes \16 March 2010 KODIAK ISLAND BOROUGH ASSEMBLY MEETING Regular Meeting of: /thL/ (/,o2 /f) Please PRINT your name Please PRINT your name 4-e Ia,hC (N c1 frii0)r`).(5 rim,. /"() CA"'\ GT<VN0A-1 L&cr& S(�� `&_,/...") 144).57, arekv -�! r..„562 Kodiak Island Borough Assembly Regular Meeting Guidelines May 6, 2010, 7:30 p.m., Borough Assembly Chambers 1. INVOCATION Captain John Quinn of the Salvation Army. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL KIBC 2.16.070.... the Chair shall cause the record to reflect the absence of the member, the REASON for the absence, and whether the absence is excused by the Assembly. Recommended motion: Move to specifically excuse any Assembly member who is absent. VOICE VOTE ON MOTION. 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. Recommended motion: Move to approve the agenda and consent agenda as submitted. VOICE VOTE ON MOTION. 5. APPROVAL OF MINUTES A. 6. AWARDS AND PRESENTATIONS A. Student of the Month — Mayor Selby • May 2010 — Nina Gronn, Senior at Kodiak High School B. Employee of the Quarter — Manager Gifford C. Municipal Clerks Week Proclamation — Mayor Selby D. Mental Health Month Proclamation — Mayor Selby 0 E. Older Americans Month Proclamation — Mayor Selby v Q F. Certificate of Recognition Honoring KMXT Public Radio Station — Mayor Selby • KMXT General Manager Mike Wall and Reporter Diana Gish Kodiak Island Borough Assembly Guidelines May 6, 2010 Page 1 to 7. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) A. Agenda Items not scheduled for public hearing and general comments. Read phone numbers: Local is 486 -3231 and Toll Free is 1- 800 - 478 -5736. Please ask speakers to sign in and state their name for the record. 8. COMMITTEE REPORTS A. Alaska Aerospace Development Corporation — Dale Nash, Chief Executive Officer 9. PUBLIC HEARING A. Resolution No. FY2010 -33 Authorizing the Approval of a Long Term Lease and Material Sales Contract With Brechan Enterprises, Inc. For Tracts B1, B2, B3, and B4 -A, Bells Flats Alaska Subdivision. Recommended motion: Move to adopt Resolution No. FY2010 -33. Staff Report — Manager Gifford Open public hearing. Read phone numbers: Local is 486 -3231 and toll free is 1- 800 - 478 -5736. Please ask speakers to sign in and state their name for the record. Comments are limited to three minutes per speaker. Close public hearing. Assembly discussion and amendments may be offered at this time. If you wish to postpone: Move to postpone Resolution No. FY2010 -33 to the next regular meeting of the Assembly. ROLL CALL VOTE ON MOTION. 10. BOROUGH MANAGER'S REPORT 11. MESSAGES FROM THE BOROUGH MAYOR 12. UNFINISHED BUSINESS A. Contract No. FY2010 -30 Solid Waste Collection Contract. THE MOTION THAT IS BEFORE THE ASSEMBLY IS: Move to authorize the manager to execute Contract No. FY2010 -30 with Alaska Pacific Environmental Services, LLC of Anchorage, AK for the Solid Waste Collection Services. Staff Report — Manager Gifford Assembly discussion and amendments may be offered at this time. ROLL CALL VOTE ON MOTION. Kodiak Island Borough Assembly Guidelines May 6, 2010 Page 2 13. NEW BUSINESS A. Contracts 1. Contract No. FY2010 -34 Kodiak Auditorium Roofing Project. Recommended motion: Move to approve Contract No. FY2010 -34 with Jay - Brant General Contractors, LLC for the Kodiak Auditorium Roofing Project in an Amount not to Exceed $635,679. Staff report — Manager Gifford Assembly discussion and amendments may be offered at this time. ROLL CALL VOTE ON MOTION. B. Resolutions C. Ordinances for Introduction 1. Ordinance No. FY2010 -01 B Amending Ordinance No. FY2010 -01 to Appropriate Funds for the Purpose of Providing Information on "An Initiative Creating an Alaska Anti - Corruption Act (Gag Law)" which will be on the 2010 Alaska Primary Election Ballot. Recommended motion: Move to adopt Ordinance No. FY2010 -01B in first reading to advance to public hearing at the next regular meeting of the Assembly. Staff report — Manager Gifford Assembly discussion and amendments may be offered at this time. ROLL CALL VOTE ON MOTION. D. Other Items 1. Confirmation of the Assembly Appointment to the Service Area No. 1 Board. Recommended motion: Move to confirm the Assembly appointment of Mr. Greg Spalinger to the Service Area No. 1 Board for a term to expire December 2010. Staff report — Clerk Javier Assembly discussion. ROLL CALL VOTE ON MOTION. Kodiak Island Borough Assembly Guidelines May 6, 2010 Page 3 14. CITIZENS' COMMENTS (These are limited to three minutes per speaker.) Read phone numbers: Local is 486 -3231 and Toll Free is 1- 800 - 478 -5736. Please ask speakers to sign in and state their name for the record. 15. ASSEMBLY MEMBER COMMENTS Announcements — Mayor Selby The next Assembly work session will be held on Thursday, May 13, 2010, at 6:30 p.m. in the Borough Conference Room. The next regular meeting is scheduled on Thursday, May 20, 2010, at 7:30 p.m. in the Borough Assembly Chambers. 16. ADJOURNMENT Recommended motion: Move to adjourn the meeting. ROLL CALL VOTE ON MOTION. Kodiak Island Borough Assembly Guidelines May 6, 2010 Page 4 Mayor Selby The mayor may not yote except in the case where only six members of the assembly are present and there TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson c) r YES TOTAL: L Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson I NO I YES Mayor Selby NO Mayor Selby TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson c2\ G c � 0) W m ; 5 8 c___) c C -- YES NO Mayor Selby TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson* ----V t/1 n O z P c__.) CO 75 -- YES I :e /three tie vote of the assemb --- \ \ NO \\ Mayor Selby TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson N C7 YES NO 0 0 7 CD 7 (D 0. CL 0 C 3 CD n X 0 co c - o m 0 v' 0 a) m Mayor Selby The mayor may not TOTAL: Ms. Stutes I Ms. Lynch Mr. Kaplan Ms. Jeffreyly Ms. Fulp Mr. Friend Ms. Branson N W n -< O 1. YES NO Mayor Selby pt in the case where only six members of the assernbly are present and there 1 � TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan4 Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson CD CO M 7 5 a z L .... f ' f YES U TOTAL: I U NO Mayor Selby Ms. Stutes Ms. Lynch.* V/ Mr. Kaplan Ms. Jeffrey V Ms. Fulp Mr. Friend Ms. Branson YES NO cn W M 7 5 o _...._ ,- - g - V Mayor Selby TOTAL: MOM Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson CD W n 75 0 z is a threelthre YES NO Mayor Selby :e tie vote of the assemb TOTAL: Ms. Stutes Ms. Lynch Mr. Kaplan Ms. Jeffrey Ms. Fulp Mr. Friend Ms. Branson cn co n ;t O v YES NO C) 0 CD CD 0. 0 0 3 0 o_ 7J 0 c c v (D o v N a z v 03 0 0 cn cn m W 0 r r 0 r r v m G m ro Tn Oth.r Cap. MARROW UK • ALASKA Kodiak Launch Complex Update May 2010 ALASKA A AEROSPACE CORPORATION , • Missile Defense Agency contract ends 31 August 2010 o Continuing to work with Congressional Delegation, State of Alaska and other customers • Currently in negotiation for a new five year contract with US Air Force • Lockheed Martin and ATK announced new Athena program and identify Kodiak Launch Complex as a location for launching • Additional proposals in progress • Rocket Motor Storage Facility (RMSF) scheduled to complete two Earth Covered Magazines (ECM) by August 2010 o Two Air Force missions scheduled for fall 2010 o Rocket motors for first set already on site o Second set scheduled to arrive in August and will be stored at the RMSF until after first mission launches • Two Air Force orbital missions scheduled to launch from Launch Pad 1 in fall 2010 — STP -S26 and TacSat -4 o Both will use the Minotaur IV launch vehicle • First flight of the Minotaur IV successfully launched from VAFB in April for the HTV -2 mission o STP -S26 scheduled to launch from KLC first • Originally scheduled for December 2009 • Rocket motors received in October 2009; currently stored • Active processing scheduled to begin this summer o TacSat -4 scheduled to launch from KLC second • Originally scheduled for September 2009 • Rocket motors scheduled to arrive in August • Will be stored at Rocket Motor Storage Facility until S -26 launches ALASKA AEROSPACE CORPORATION! mu ET.: Kodiak Launch Complex Update May 2010 • Description of S -26 Mission: • Primary payload — USAF Space Test Program STPSat -2 • Satellite that measures space phenomenology and relays ocean buoy data • Secondary payloads • FalconSat -5 Satellite (US Air Force Academy) o Detects ambient plasma density to validate thruster plume models • FASTSAT Satellite (NASA Marshall) o Multiple science missions including thermospheric temperature imager • FASTRAC Satellite (Air Force Research Lab w/ University of Texas) o Demonstrate GPS relative navigation & micro - charge thruster performance • O /OREOS CubeSat (NASA Ames) o CubeSat launching from a P -Pod o Study organic specimens exposed to the space environment • RAX CubeSat (National Science Foundation) o CubeSat launching from a P -Pod o Study plasma instabilities leading to irregularities of electron density in the ionosphere • Description of TacSat -4 Mission: • Single Satellite for Naval Research Labs o Provides 10 ultra high frequency channels used for communications • Comms -on- the -move for existing radios • Blue Force tracking • Data exfiltration of buoy and ground sensor data • Augments areas with little or no current space support Space Development & Test Wing FACT SHEET Space & Missile Systems Center Air Force Space Command DoD Space Test Program -S26 (STP -S26) Mission Minotaur IV MISSION INFORMATION STP -S26 is a multi - payload mission executed by the DoD Space Test Program (STP) at the Space Development and Test Wing (SDTW), Kirtland AFB, NM. The mission was designated STP -S26 to correspond to the 26th small launch vehicle mission in STP's 40 -year history of flying DoD space experiments STP -S26 Objectives: 1. Provide access to space for Space Test Program Satellite -2 (STPSat -2) 2. Demonstrate dual -orbit capability of Minotaur IV using Hydrazine Auxiliary Propulsion System (HAPS) 3. Demonstrate multi - payload capability on Minotaur IV using standard interfaces (up to 4 Expendable Evolved Launch Vehicle (EELV) Secondary Payload Adapter (ESPA) -class spacecraft) 4. Provide access to space for additional Space Experiment Review Board (SERB) rideshare experiments Mission Firsts: 1. First flight of STP SIV satellite 2. First use of MMSOC GSA 3. First flight of Minotaur IV Multi- payload Adapter (MPA) 4. First use of HAPS to obtain dual orbit on Minotaur IV 5. First Minotaur launch from KLC 6. First flight of P -Pods incorporated on the Minotaur IV, and first launch of cubesats (O /OREOS and RAX) from Minotaur IV 7. First flight of P -Pod and launch of cubesat (Nanosail D) from free -flying satellite ( "FASTSAT ") Program Information: Customer: Space Test Program Contractor: Orbital Sciences Corporation Launch: Minotaur -IV from Kodiak Launch Complex (KLC), AK Primary orbit 650 km circular @ 72° inclination Secondary orbit 1150 km circular @ 72° inclination Initial Launch Capability: Summer 2010 PRIMARY PAYLOAD INFORMATION • STPSat -2 (Space Test Program) • Prime satellite on STP -S26 mission • First demonstration of STP Standard Interface Vehicle (SIV) • ESPA Class Satellite • SERB Payloads Ranked #1, and #6 (2006) • Space Phenomenology EXperiment (SPEX) • Ocean Data Telemetry Microsat Link (ODTML) • Measures space phenomenology and relays ocean buoy data DUAL ORBIT CAPABILITY • Hydrazine Auxiliary Propulsion System (HAPS) (Orbital Science Corporation) • Secondary Orbit following deployment of all four (4) ESPA satellites and two (2) CubeSats, O /OREOS and RAX • All remaining propellant to be expelled • Deployment of two (2) ballasts using the Boeing Demonstration Separation System (DSS) • FalconSAT -5 (US Air Force Academy) • SERB Payloads Ranked #26, and #31 (2006) • Integrated Miniaturized ElectroStatic Analyzer (iMESA) • Wafer- Integrated Spectrometers (WISPERS) • ESPA Class Satellite • Detect ambient plasma density /validate thruster plume models • i i • • FASTRAC (University of Texas at Austin) • Formation Autonomous Spacecraft with Thruster, Relnav, Attitude and Crosslink • An Air Force Research Laboratory University Nanosat Program • Comprised of two satellites (FAST -1 and FAST -2) • ESPA Class Satellite • SERB Ranked #32 (2006) • Demonstrate Global Positioning System relative navigation and micro - charge thruster performance • RAX (National Science Foundation) • Radio Aurora eXplorer (RAX) • Study plasma instabilities leading to irregularities of electron density in the ionosphere • CubeSat launching from a P -POD FACT SHEET SECONDARY PAYLOAD INFORMATION • FASTSAT -HSVO1 (NASA Marshall Space Flight Center) • Demonstrate Fast Affordable Science & Technology SATellite — Huntsville (FASTSAT- HSV01) bus technology, cost and mission integration approach • Enabling an affordable cost model in the small (microsatellite) spacecraft market that provides opportunity for science, research and technology payloads • ESPA Class Satellite • SERB Payloads Ranked #28, #55, #57, and #59 (2008): • Threat Detection System (TDS) • Thermospheric Temperature Imager (TTI) • Plasma Impedance Spectrum Analyzer (PISA) • Miniature Imager for Neutral Ionospheric atoms and Magnetosphereic electrons (MINI -ME) • NanoSail D — cubesat technology demonstration, Mid -SERB entry, rank: N/A • Miniature Star Tracker (MST), Mid -SERB entry, rank: N/A • O /OREOS (NASA Ames Research Center) • Organisms /ORganics Exposure to Orbital Stresses (O /OREOS) • Expose organisms and organic specimens to the space environment • CubeSat launching from a P -POD • Ballasts (2) • Released into secondary orbit via a Boeing Demonstration Separation System (DSS) ray fi I • Data -X +•' Communications for Buoys and Ground Sensors !" A Vii '_.+ Naval Research Laboratory TacSat -4 Providing Communications and Enabling ORS Summary TacSat -4 is a Navy -led Joint mission to provide operationally relevant capabilities and to enable Operationally Responsive Space (ORS). TacSat -4 provides 10 ultra high frequency (UHF) channels that can be used for any combination of communications, data exfiltration, or Blue Force tracking. Notably, TacSat -4 provides communications -on -the -move with legacy radios and provides a wideband "MUOS -like" channel, but not MUOS capability, for early testing. The unique orbit augments geosynchronous communications by allowing near - global, but not continuous, coverage including the high latitudes. TacSat -4 also advances ORS development areas including spacecraft bus standards, long dwell orbits, dynamic tasking, and net - centric operations. TacSat-4 Spacecraft Bus Designed Using ORS Bus Standards • 12 Foot UHF Antenna With Payload Structure and Electronics Key Elements Spacecraft: Payload: Bus: Small -Sat Class at 430 kg With 1000 W ONR Provided "COMMx" With 10 UHF Channels OSD Provided "Phase 3 Prototype" Based on ORS Bus Standards Launch: SMC /ORS Provided Minotaur -IV From Kodiak, Fall of 2010 Ground: NRL's Blossom Point (BP) Ground Station VMOC: SIPRNET User Access and Apportionment Terminals: Legacy Radios, UHF Wideband Radios, and Multiple Data -X Units Users: Multi - COCOMs and Services Selection By a joint process culminating in a Flag and General Officer vote by Army, Navy, Air Force, Marines, and STRATCOM. Mission Objectives • Enable long dwell orbit capability with ORS class launch and spacecraft. • Evaluate, develop, and mature ORS bus standards. • Provide comms -on- the -move, Blue Force tracking, and data exfiltration of buoy and ground sensor data. Augment areas with little or no current space support. Availability Spacecraft ready October 2009. Launch Fall of 2010. Flight operations for one year with option to extend. Management The Naval Research Laboratory (NRL) is the program manager. Orbit Provides Long Dwell "Low HEO" - Highly Elliptic Orbit, 4 hour period (6 orbits per day), 700 km x 12,050 km at 63.4• inclination. Provides near- global coverage, although not continuous. Provides 2 hour dwells per orbit. User Terminals Users will use their existing equipment or early wideband radios when applicable. Typical communications, data exfiltration, and Blue Force tracking applications do NOT require user terminal antenna pointing. Advanced capabilities, such as bridging multiple channels or converting UHF voice corms to SIPRNET, or specific data exfiltration scenarios, such as buoy collections transmitted to Navy ship IP networks, require a unique terminal that supports a 2000 nmi diameter area, in addition to existing equipment. Ground and Tasking The NRL Blossom Point (BP) Ground Station in Maryland provides the command and /t)JvmQ control for TacSat -4 and maintains its user tasking system. BP's flexible Common Ground Architecture (CGA) allows rapid transitions and enables net - centric operations. Payload tasking will be performed via the SIPRNET -based Virtual Mission Operations Center (VMOC), with frequencies allocated by the JTF- Global Network Operations and theater managers as appropriate. BP's on -site antennas provide assured communications with global augmentation via the Air Force Satellite Control Network antennas. Naval S &T Context ONR's Space Innovative Naval Prototype ( "Space INP ") began in FY06 to prototype new Naval space capabilities. This Space INP represented the Navy's first S&T investment in response to the Department's Space Policy approved in 2005, which emphasized the need to invest in Naval Space S&T and R &D. The initial Space INP investments were aligned with the Navy needs based on studies and analysis of operational scenarios.