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HomeMy WebLinkAbout1991-08-28 Council Packet - Work Session, KBVCCKenai City Council Work Session August 28, 1991 Kenai Bicentennial Visitors Cultural Center P PUBLIC MEETING NOTICE The Kenai City Council will convene in a work session on Wednesday, August 28, 1991 at 7:30 p.m. in the Conference Room at Kenai Community Library. The following item will be discussed at that time: Kenai Bicentennial Visitors & Cultural Center The public is invited to attend and participate. I Carol L. Freas City Clerk DATED: August 22, 1991 A MS B I C E NTEN N I A L &,ye W,&7a PISZ -_ 4,w&ta fu_1V CITY OF KENAI " , � �d Ca, p � 4 4 1 ai , 6 a, , " MEMORANDUM 210 Fidalgo Avenue Kenai, Alaska 99611 TELITHONE 283-7535 FAX 907-283-3014 TO: Mayor John Williams and the Kenai City Council FROM:Vfjl!� Wm. J. Brighton, City Manager DATE: August 28, 1991 RE: Memorandum Background in Preparation for Discussion with the Kenai Bicentennial Visitors and Convention Bureau and the Kenai Chamber of Commerce The Kenai Bicentennial Visitors and Convention Bureau and the City of Kenai joined forces in applying to the Economic Development Administration (EDA) for a grant to build a visitors and cultural center. Over the past three years, the City of Kenai has donated approximately $285,000 to the Kenai Bicentennial Visitors and Convention Bureau, Inc., a non-profit organization. This request was based on a request from that organization for the City to fund, for a three year period, that organization. On at least two occasions, the Bureau agreed to operate, manage and maintain the new facility. This is stated in the Memorandum of Agreement dated October 20, 1989 and the Joint Powers Agreement dated December 7, 1989. Both documents, which are attached, state that the City will manage and maintain the facility if for any reason the Bureau is unable to do so. In addition to the $285,000 transferred to the Bureau, the City has matched an $800,000 grant acquired from EDA. Also, the City paid $244,000 for the real estate upon which the facility will be located. To date, that is a total commitment of $1,329,000 from the City of Kenai, for the purpose of the Bicentennial visitors and Cultural Center. The point to now be addressed are additional expenditures in order to maintain and operate the facility for the purposes intended. I think it goes without saying that the City or Bureau is faced with operating a facility from which there will be no profits, only an indirect influx of additional dollars into the community based on the effectiveness and 'Lngenuity used in operating the visitors center. In the application grant to the EDA, a projected annual operation and maintenance budget was included, which is attached as Exhibit C. This projected budget totals approximately $49,000 per annum. With those numbers in hand, and a very brief explanation of the history of where we are now on this project, the Council must decide what is the best avenue to pursue for the benefit of the community of Kenai. WJB / kh 'A" f0-- AGREEMENT x, The parties to th:i.s Agreempnt are the City of Kenai, a Tnunicir)al corporation, and the Kena-.L Bicentennial Visitors an(-', Convention Bureau, a non-iDro'Lit corporation. .WHEREAS, it is to the mutual benefit of the City of Kenai and t.he Kenai Bicentennial Vj_ si tors and Convention Bureau that a �Bicentennial 'Visitors and Cultural Center be built in Kenai; a�7,d, f�WHERIZAS, it is to the benefit to trie City of Kenai that T-ne Ke:-iai IBicentennial Visitors and Convention Bur au operate and maintain ithe facility once it is completed; and, i I!WHEREAS, such a facility will promote tourism which is an import,int part of the local economy. .NOW Th"EREFORE, the City of �Kenai and the Kenai Bicentenn,,,.al .,Visitors and Convi-.-�ation Bureau agree as follows: 1� The City of Kenai shall have the financial and management ,responsibility o;f ouilding the facility; 2. Once the faciiity is constructed, it shall be i.,qe �responsibility of the Kenai Bicentennial Visitors and Convent --.-on !�B f,i ureau to manage and maintain the facility; 3., Shoi..ild the Kenai Bicentf.r,nnial Visitors and ConVent,.,,:)n 3ureau be unable to operate the faci-lity for any reason, the City ,of Kenai shall assume the responsibility for management E.nd -1 e maintenance o' tl faCliity. DATED: This 20th day of October, 1989. CITY OF KENAI KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU 111A !!will J., B- hton Sue Carter, Ex'ecutive 571rector jCit_ lager I "EXHIBIT IV-C-7" JOINT POWERS AGREEMENT The parties to this Agreement are the CITY OF KENAI, a municipal corporation, and the KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU, a non-profit corporation. This Agreement covers the ownership and operation of the proposed KENAI BICENTENNIAL VISITORS AND CULTURAL CENTER. The CITY OF KENAI shall have the financial and management responsibility for the construction of the facility. Once the facility is constructed, the KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU shall maintain and manage the facility. Ownership of the facility shall be vested in the CITY OF KENAI. Should the KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU be unable to operate the facility for any reason, the CITY OF KENAI shall assume the management and maintenance of the facility. The parties to this Agreement understand that they are bound by the application forms and grant documents executed and accepted on their behalf and the applicable statutes and regulations. The parties to this Agreement agree to submit the following material with original signatures: a. A front page of the ED-101A Application. b. Assurances, pages 12-14 of the ED-101A. C. Exhibit IV-E-5, Civil Rights Status Report. d. Form ED-612, "Current and Projected Employee Data." e. Applicant's Certificate of Non -Relocation. f. Drug -Free Workplace Certificate. The CITY OF KENAI shall be solely responsible for bidding, award, and management of the construction contracts regarding the project. The CITY OF KENAI shall be responsible for filing the EDA project reports. The CITY OF KENAI is solely authorized to receive and distribute grant funds. The CITY OF KENAI shall be responsible for filing EDA financial reports. The CITY OF KENAI shall be the lead agency for applying and accepting EDA assistance. The CITY OF KENAI shall have authority to bind the KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU to: a The requirements set forth in Public Works Application Forms, ED-101F and ED-101A, and all applicable exhibits to these forms. b. The Grant documents, which include: (1) the Grant Award; (2) the ED-508 Budget accompanying the Grant Award; I - JOINT POWERS AGREEMENT y?, (3) the Special Conditions and Standard Terms and Conditions for Public Works and Development Facilities accompanying the Grant Award; (4) The EDA publication, Requirements for Approved Projects, Eighth Edition, June, 1984, which is sent to grantees after EDA receives an executed original Grant Award. C. The provisions of the United States statutes codified in the United States Code and EDA regulations codified in the code of Federal Regulations (CFR) and any Federal Register announcements applicable to EDA Public Works projects. DATED: This 'o'7'/—O�( day of December, 1989. CITY OF KENAI Wm. J.,�righton City Manager 1, - 1, JOINT POWERS AGREEMENT KENAI BICENTENNIAL VISITORS AND CONVENTION BUREAU Su 'Carter--' ',o Executive Director f1410 I C '' KENAI BICENTENNIAL VISITORS AND CULTURAL CENTER PROJECTED ANNUAL OPERATION AND MAINTENANCE BUDGET ODeratina Sunvlies Cleaning supplies, paper towels, soap, kleenex, toilet tissue and miscellaneous operating supplies $ 2,000 ReRair and Maintenance Supplies Neon light tubes, plumbing and electrical supplies, hardware, projector bulbs, supplies for yard maintenance 3,000 Small Tools and Minor Equipment Minor equipment and furniture 1,500 Professional Services Janitorial services 6,500 Communication Telephone, base rate and long distance. 12,000 Utilities Gas, electricity, water and sewer, garbage 14,000 Repairs and Maintenance Miscellaneous equipment repair, fire equipment inspection, security system 10,000 Total projected annual operation & maintenance budget $49,000 WP50\GRANTS\CULTURAL.BUD Xznai Slazntznniat (VWtou and Conuzntion Bazzaa August 28, 1991 B I C E N T E N N I A L tk�ye Ot& ,/ at,;,A a, Honorable Mayor and Members of Council: Thank you for this opportunity to discuss the future of the Kenai Bicentennial Visitors & Cultural Center. As co -applicant of the U.S. Department of Commerce, Economic Development grant for construction of the $1.6 million facility, and in compliance with the terms of the grant, we propose the City approve a 50/50 matching grant program with the Kenai Bicentennial Visitors and Convention Bureau, Inc. to manage the Visitors & Cultural Center and provide visitors service for a period of one (1) year. A proposed budget is attached for your consideration. (Please see attachment "A"). In addition, we ask for your concurrence for the Bicentennial Visitors & Convention Bureau to continue to assist in preparing the new facility for its grand opening on or around the first of January 1992. Most specifically, our request includes permission to arrange for moving displays and exhibits from the Kenai Museum, moving of Bicentennial Visitors and Convention Bureau furniture/ equipment (please see attachment "B-1" & "B-2") to the new building as well as selection of remaining equipment needed in order to open the Bicentennial Visitors and Cultural Center to the public. In particular, we need to acquire the appropriate audio and visual equipment and tables and chairs. For your information, we are currently working with two local major companies for financial assistance in acquiring the needed audio/visual equipment. All recom- mendations for new equipment would be forwarded to the Council for final ap-- proval. P. 0. 92ALUI. Kenai. Al k 9 611 Inn7) 283-1991 If authorized by the City to contract for management of the Bicentennial Visitors and Cultural Center, the Visitors and Convention Bureau would also begin the process of implementing a meeting and convention program. The process would involve the planning and development of a system by which we could aggressively pursue a meeting/convention industry for Kenai. The proposed system would also allow for accurate and relevant reporting of results of marketing and timely follow-through. As evidenced by the success of the many events and advertising of the Bicentennial celebration and of Kenai (Please see attachment "C"), we feel that we have an excellent working relationship with the City of Kenai. The intent of obtaining a grant to construct the Bicentennial Visitors and Cultural Center was to enhance and develop a major visitor industry for Kenai and increase the number of visitors and tourists to our area, Therefore, we respectfully request your consideration to enter into a working "partnership" with the Kenai Bicentennial Visitors and Convention Bureau. Should the City of Kenai not wish to participate in an agreement with the Kenai Bicentennial Visitors and Convention Bureau, we would ask for consideration of returning our organization to "commission status" and allow for an advisory commission concerning the operation of the Bicentennial Visitors and Cultural Center as well as the visitor/tourism industry. The Board of Directors of the Kenai Bicentennial Visitors and Convention Bureau are grateful for the support of the City of Kenai and look forward to successful endeavors in the future. Thank you! Sincerely, KENAI BICENTENNIAL VISITORS & CONVENTION BUREAU, INC. Robert F. Williams, President Board of Directors Yr. Ivenai Bicentennial Visitors & Cultural Center PROPOSED VISITOR INDUSTRY ANNUAL BUDGET SALARIES: Executive Director 2 Part-time Assistants 2 Summer Part-time Assistants PAYROU-TAXES PROFESSIONAL SERVICES (Accounting, et al) OFFICE/GEN ERAL SUPPILI ES TELEPHONE'. POSTAGE MEMBERSHIP FEES/PERMITS EQUIPMENT/MAINTENANCE CONTRACTS PRINTING ADVERTISING TRAVEL MISCELLANEOUS CITY OF KENAI: Promotion of Tourism/Visitor Industry FUND RAISING EFFORTS MEMBERSHIP/PATRON FEES EXHIBIT ENTRANCE FEES($2/ea.) and Room Rental, etc. TOTAL PROPOSED VISITOR INDUSTRY/TOURISM BUDGET � 110 [010, M E EXPENSE $4,000.00 $60,000.00 $7,500.00 $2,000.00 $2,000.00 $1,500.00 $2,000.00 $1,000.00 $1,500.00 $2,000.00 $5,000.00 $4,000.00 $20,000.00 $1,500.00 $1,000.00 $50,000.00 $30,000.00 $5,000-00 $10,000.00 $105,000.00 $105,000.00 NOTE Building and Grounds - Operation and Maintenance (Janitorial, Utilities, Insurance, Snow Removal, and Landscaping) not included in the above budget. Rev. 8/31/91 ATTACHMENT "A" INVENTORY OFFICE EQUIPMENT The following is a list of equipment/office machines that purchased by the Kenai Bicentennial Visitors & Convention be utilized in the newly constructed Visitors and Cultural As of 6/91 have been Bureau and will Center: (01) Executive Desk Chair w/Arms (02) Two (2) 4-Drawer Legal File Cabinets (03) Standing Black Storage Cabinet (04) Copy Machine Cabinet (05) RICOH 2070 Copy Machine (06) Computer Stand (07) Computer Equipment (08) One (1) IBM Electric Typewriter (09) One (1) Typewriter Stand (10) Radio and Small Speakers (11) Miscellaneous Desk Assecories (i.e. in/out trays, book stands, etc.) (12) Five (5) 2-line Telephone Systems (13) Four (4) Wastebaskets (14) Coffee Maker (15) 10" Emerson VCR/TV (16) Macintosh SE 20 HardDisk & Laserwriter IINT w/Cables (17) HOT SHOT Hot Water Maker (18) Executive Desk w/Credenza and Lamp Table (19) Two (2) Folding Conference Tables (20) TEXAS INSTRUMENTS TI-5310 Calculator (21) RICOH FAX 09 (22) ORECK Vacuum Cleaner (23) 2-Drawer Legal "Side" File Cabinet (24) 4' Glass/Oak Show Case (25) 6' Glass/Oak Show Case (26) Oak Floor Display Unit w/Glass Shelves (27) 10' Oak Work Table w/Drawers and Shelves (28) Acrylic Brochure/Display Unit ATTACHMENT "B-1" The following is purchased by the Games of Chance Revised 8/5/91 INVENTORY OFFICE EQUIPMENT a list of equipment/office machines that have been Kenai Bicentennial Visitors and Convention Bureau, & Skill account: (01) Secretary Desk Chair (02) One (1) 4-Drawer Legal (03) One (1) Office Desk ATTACHMENT "B-2" File Cabinet Kenai Bicentennial Visitors & Convention Bureati, hic. Mail Inquiry Statistical Information The following was mailed as a result of 1989-1990 advertising and subsequent inquiries: BROCHURES: 34,270 MAIL INQUIRIES: 947 PORTFOLIOS: 3,333 MEETING/CONVENTION RESPONSES: 330 "k V5 0 U 15161 N3 01 1-,i WIR MINOR 1753 m *Revised May 24, 1991 ATTACHMENT "C" ;2 q 2 Property Management Agreement Visitor Information Center EDA Project No. 07.11 -CMI 2 Cfty of Soldotna, Alaska This PROPERTY MANAGEMENT AGREEMENT, dated the 12th day of April 1988, by and between, the CITY OF SOLDOTNA, ALASKA, whose address is 177 North Birch Street, Soldotna, Alaska 99669 (hereinafter with its successors and assigns called "Grantee", "Owner", or NCity') and the GREATER SOLDOTNA CHAMBER OF COMMERCE, whose address is P.O. Box 236, Soldotna, Alaska 99669 (hereinafter with its successors and assigns called "Property Managerm or wChambern) - DEFINITIONS: 1. "EDA" means the Economic Development Administration, U.S. Department of Commerce, whose address is Herbert C. Hoover Building, Washington, D.C. 20230. 2. "Grantee/Owner/City" means the City of Soldotna, a municipal corporation of the State of Alaska; a Grantee under Title I of the Public Works and Economic Development Act of 1965, as amended; and, the Owner of Real Property on which a project facility is located which was developed with the assistance of a land donation from McLane & Associates and grant funds from the EDA, the State of Alaska, and the Soldotna Chamber of Commerce. 3. "Property Manage r/Chamber" means the Greater Soldotna Chamber of Commerce, a nonprofit corporation of the State of Alaska. The Chamber made a $67,000 cash contribution to assist with the design and construction of the project facility in return for a qualified right to maintain general offices in the building. The Chamber is also the Property Manager for the entire project facility pursuant to terms and conditions set forth in this Agreement. 4. "Real Property" means any land, improved land, structure, appurtenances thereto, or other improvements, excluding movable machinery and equipment. Improved land also includes land which is improved by the construction of such facilities as roads, sewers, and water and gas lines which are not situated directly on the land but which improve such land. For the purposes of this Agreement, the Real Property is described as follows: Lot Two (2), according to the plat of FISHERMAN'S SQUARE SUBDIVISION, filed under Plat #87-46, Kenai Recording District, Third Judicial District, State of Alaska. A fifteen (15) foot wide public pedestrian easement for a pedestrian access stairway from the Visitor Center on Lot 2, Fisherman's -Square Subdivision to the Ordinary High Water Line of the Kenai River, as recorded at Book 315, Page 200 in the Kenai Recording District, Third Judicial District, State of Alaska. 4. "Sell" and its derivatives shall include any conveyance or transfer of any interest in the Real Property, including, but not limited to, renting or leasing such Real Property. RECORD IN KENAI RECORDING DISTRICT REQUESTED BY CITY OF SOLDOT'IA RETURN TO CITY OF SCILDOTNi�l 177 ',10RTH BIRCH ST SOLDCTINA, AL,',SKt,1 9�669 ,Property Managemen r reement f Visitor Informaton Center RECITALS: fu,%04% WHEREAS, the City of Soldotna submitted an application, designated as EDA Project No. 07-11-03012, for financial assistance pursuant to the Public Works and Economic Development Act of 1965, as amended (P.L 89-136,42 U.S.C. 3121, et seq.); and <c <c WHEREAS, by Offer of Grant dated July 6, 1987, EDA offered to the City a $200,000 grant to assist in financing construction of a Visitor Informabon Center (hereinafter called the "Projectl; and, CM --i -J -:X 1-.) � -18 the City of Soldotna, as Owner of the Real �.n <t WHEREAS, on August 6, 1987 by Resolution 87 Property, agreed to comply with the applicable requirements of 13 Code of Federal Regulations Part 314, CD as amended; and CD LJ L/I WHEREAS, the City of Soldotna further pledged in Resolution 87-4 that it will assume ultimate responsibility for the operation and maintenance of the building for its useful life to assure that the facility will be operated and maintained as a Tourist Information Center for visitors to the Kenai Peninsula; and WHEREAS, the grant application and Resolution 87-4 gave notice that that the City of Soldotna intended to contract with the Soldotna Chamber of Commerce for the operation of the facility and that the Chamber will maintain offices in the building in consideration for its initial equity in the facility and on payment of a pro-rata share of the operation and maintenance expenses; and WHEREAS, the grant funds have been used for the construction of the Visitor Information Center building and it is ready for occupancy; and WHEREAS, the Chamber is willing to enter into a Property Management Agreement with the City for operation and maintenance of the entire facility and to pay for a pro-rata share of the building's operation and maintenance expenses based upon the relationship which its offices bear to the total square footage in the building; and WHEREAS, the City (as Owner) and the Chamber (as Property Manager) of the Real Property have agreed to record these agreements in the appropriate office for the recording of public records affecting real property in Alaska so as to constitute notice to all persons of all restrictions on title to and use of the Project and the Real Property; and WHEREAS, the Office of the District Recorder, located at Kenai, Alaska, is the proper office to record these agreements. I NOW, THEREFORE, in consideration of financial assistance rendered by EDA and of other good and valuable consideration, the receipt and adequacy of which the parties hereby acknowiedge, and to assure -7, that the benefits of the Project will accrue to the public and be used as intended by both the EDA and the City, the City and the Chamber hereby covenant and agree as follows: Section 1. Requirements of 13 Code of Federal Regulations Part 314. As a Special Condition to the EDA Grant which assisted with the financing for the construction of the Visitor Information Center, the City has granted the Federal Government, a first priority unsubordinated lien against, and security interest in, the property which was acquired and improved with the assistance of the grant funds. This lien or security interest has been perfected in accordance with Alaska law and is recorded in the Kenai, Alaska Recording District at Book 315, Page 195. City of Soldotna 2 AW11 8, 1988 Property Management Ceement Visitor Information Center E p HX329 A39 The City has further agreed that the Government shall be entitled to recover damages in the event that the City alienates, in any manner, any interest in the real property acquired or improved with the EDA grant funds. EDA's regulation at 13 CFR 314.4 provides that upon disposition of property acquired or improved with EDA grant funds, the Government shall be entiUed to a recovery based upon the ratio of the percentage of the Governmenfs parbcipabon in the Project to the fair market value of the property Cn at the time of the disposition. For the purposes of the lien, the amount of the Government's damages <r -:X shall be the full amount of the Governmenfs grant, plus interest from the date of the disposifion. = �4 �- V) CD CC C3 1 -J -< This lien must remain in effect through the useful life of the Project as defined in 13 CFR 314.6(a). CD V) Alienabon shall include but not be limited to sale, lease, rent, option, or mortgage, vAth the exception of cr those leases or rental agreements the Government approves in writing for tenant space in the Project CD facilities. CD (-I Ul A. The ratio of the Federal Governmenrs participation in the Project is 39% as shown below: Means of Financina EDA Grant #07-11-03012 $200,000 Land Donation from McLane & Associates 120,000 State of Alaska Grant #9/87-403 75,000 Soldotna Chamber of Commerce 67,ODO City of Soldotna Capital Contribution 5M $513,981 Ratio of EDA Grant to Total Project: ($200,000/$513,981) 39% B. The expected useful life of the Project is twenty (20) years as certified by a letter dated October 7, 1987 from Carmen Vincent Gintoli, Project Architect. C. During its expected useful life, the Project shall not be used for other than the purposes for which the Project was financed by EDA, as stated in the application, unless the prior written approval of the LO Assistant Secretary is obtained. Uses stated in the application included a Visitor Information Center and general offices for the Soldotna Chamber of Commerce. D. The real property aco ' uired as a part of the Project or specifically improved and included as a part of the Project, as interest therein, shall not be sold, leased, transferred, conveyed or mortgaged without the prior written consent of the Assistant Secretary. E. Whenever the real property, which is subject of this Agreement, is sold, leased or otherwise conveyed pursuant to 13 CFR 314.3(a)(1), the transferor shall add to the document conveying such interest a convenant, which has been previously approved by the Assistant Secretary, prohibiting the use of such property for any purpose other than the general and special purpose of the grant as determined by the Assistant Secretary. The instrument containing this covenant shall be recorded in the pertinent public records affecting real property in the City of Soldotna, State of Alaska. City of Soldotna 3 April 8, 1988 CD -cc CD cn CD C) CD Rom V) Li- (ZD LLJ -Zi Property Management (reement Visitor Info C ,ff 0 hgnN, Er�cl "If-[ Section 2. Property Management, Operation and Maintenance. Except as otherwise provided in this Agreement, the Chamber shall provide for all management, operation and maintenance of the Visitor Information Center and shall appoint, compensate and otherwise control personnel for these purposes. The Chamber shall be financially responsible for all payroll related expense, telephone and other expenses incidental to its general operations. Expenses for all other operation and maintenance expenses related to the real property shall be shared by the City and the Chamber. The Chambers share shall be based upon the relationship which its offices bear to the total square footage in the Visitor Information Center Building. Section 3. Management Responsibilities. Subject to annual appropriations of the City for such purposes, the Chamber shall manage the Visitor Information Center and shall provide the City with services customarily provided in such facilities, including the: A. Determination of the services to be provided to promote visitor attractions within the Kenai Peninsula and the overall methods, procedures, means and personnel by which the operations are to be performed; B. Supervision of the operations within the Center, including the right to hire, assign, schedule, compensate, discipline, retain and/or layoff employees; and, C. Adoption of rules, regulations, programs and any other measures, not in conflict with this Agreement, which are necessary to efficient and effective operations of the Visitor Information Center. Section 4. Maintenance Responsibilities. The Chamber shall contract for or undertake repairs which are necessary due to normal wear and tear and shall do and perform any and all things in and about the upkeep and maintenance of the building, but subject to the limitations provided in this section. A. The Chamber shall inform the City promptly upon discovering or uncovering defective workmanship, defective materials or evidence of poor design. Repairs in these circumstances shall be delayed until the City is able to ascertain legal responsibilities and who may be responsible for the cost of repairs. B. The Chamber shall not incur any obligation for or undertake itself to make repairs or do other work in excess of $500, except on prior written consent of the City. Section 5. Real Property. The real property to be managed, operated and maintained is described as follows: Lot Two (2), according to the piat of FISHERMAN'S SQUARE SUBDIVISION, filed under Plat #87-46, Kenai Recording District, Third Judicial District, State of Alaska. A fifteen (15) foot wide public pedestrian easement for a pedestrian access stairway from the Visitor Center on Lot 2, Fisherman's Square Subdivision to the Ordinary High Water Line of the Kenai River, as recorded at Book 315, Page 200 in the Kenai Recording District, Third Judicial District, State of Alaska. City of Soldotna Property Management rreement Visitor Infor ,,,,,tAente C ?"r 041 Section 6. Common Area Maintenance and Use Agreement. The real property described at Section 5 is subject to an Agreement with McLane & Associates for common area maintenance and use. The Agreement sets forth certain restrictions as to the use of the property and allocates financial responsibilities for operation and maintenance of the "Common Areas" within FISHERMAN'S SQUARE SUBDIVISION. <C :r- A copy of this Common Area Maintenance and Use Agreement is attached hereto and is made a part of LO CD < this Agreement by reference. The Chamber agrees to comply with all use restrictions contained within M --J -J -< said Agreement. CD 1A U- Section 7. Shared Operation and Maintenance Expenses. Specific operation and maintenance expenses, CD defined in this Section, shall be shared between the City and the Chamber. The Chambers share shall CD be based upon the relationship which its offices bear to the total square footage in the building. LJ Ln A. The total square footage within the building, including the unfinished basement space, is 3,102 CD souare feet. ::D B. The City's allocated share of the square footage within the building is 2,027 square feet. The City LJ will be ffnanciall� responsible for 6.7/6 of the operation and maintenance expenses defined In this Section. C. The Chamber's allocated share of the square footage within the building is 1,075 square feet. The Chamber will be financially responsible for 35% of the operation and maintenance expenses defined in this CD Section. D. Should the Chamber desire to use space within the basement (which contains 901 square feet) at some time in the future, its share of the operation and maintenance expense shall be adjusted according to its changed use of the facility. E. Facility operation & maintenance expenses, which are not related to the Chamber's general -D operation, are eligible for cost sharing between the Chamber and City. These expenses shall include: 1 . Staffing for the Visitor Center 2. Building Repair and Maintenance Supplies 3. Electricity 4. Natural Gas 5. Water & Sewer 6. Refuse Collection 7. Janitorial & Custodial Services 8. General Liability and Property Insurance 9. Building Repair and Maintenance Services F. Common Area expenses will be shared between all building owners within FISHERMAN'S SQUARE SUBDIVISION as provided in the Common Area Maintenance and Use Agreement. The Visitor Information Center's share will be based upon the relationship which the square footage of the Visitor information Center bears to the square footage of all other buildings constructed in the subdivision. Common area expense will be shared between the City and the Chamber according to the square footage formulas defined in Paragraphs B, C and D of this Section. City of '-�Ioldotna 5 April 8, 1988 Property Management eement Visitor Information Center C V) The common area expenses, as defined in the Maintenance and Use Agreement, incIdWU 1. Maintaining the roadway, parking and pedestrian walkway surfaces in a level, smooth and evenly covered condition. 2. Placing, keeping in repair and replacing any necessary and appropriate directional signs, markers <� < and lines. = :�e �- Ln C:) :z 3. Operating, keeping in repair and replacing where necessary, such artificial lighting facilities as C:) shall be reasonably required. CD 4. Maintaining and watering all landscaped and planted areas and making such replacements of CD shrubs, trees, grass, plants and other landscaping utilities as is necessary. 5. Keeping all Common Areas free and clear of excess dirt, debris, ice and snow, when needed. 6. Keeping paved portion of all Common Areas free of holes and plainly striped, resurfacing all or any parT or ine pavea areas wnen necessary, anu restriping aii or any pari ot ine parKing iot or iois when necessary but not less than once every two years. 7. Keeping the Common Areas adequately lighted, replacing all damaged or defective bulbs in the future. 8. Keeping all sign towers, pylons, monuments and other sign structures of signs in good repair, replacing any damaged or defective portion thereof, and keeping any tenant signs on such tower lighted during the hours that such tenant is open for business. 9. Maintaining all perimeter walls, rockeries, stairways, walkways, decks and fences in good condition and state of repair. 10. Keeping and maintaining in good working order and repair the storm sewer system serving the Center, including, but not limited to the drainage system and catch basins. 11. Keeping all portions of Components of the Common Areas not specifically treated above in good order and repair and in a sightly condition, including painting, resurfacing and replacement of any such portion or component thereof which has become damaged or defective. 12. Providing security service or any other service or maintenance program that may be warranted by the circumstances to keep the Common Areas comparable to common areas of other shopping centers of like size and nature in the general area. 13. Establishing reasonable reserves to maintain and repair the Common Areas and carry out the Owner's responsibilities in the Common Area Maintenance and Use Agreement. 14. Employing or appointing an independent contractor management company to carry out the maintenance of the Common Areas. 15. Procuring and maintaining public liability and property damage insurance for protection against claims for personal injury, death or property damage occurring in, upon or about the Common Areas. 3 J City of Soldotna 6 April 8, 1988 Property Management -eement Visitor Information Center 043 16. Paying all real and personal property taxes and assessments levied against the Common Areas. 113 Secbw 8. Bushiess Procedures A. The Chamber shall submit its budget for yearly operations at the Visitor Information Center to the City Manager and City Council prior to March 15 of each year in accordance with Chapter 3.04 of the CD -1: Soldotna Municipal Code. The budget shall provide estimates of revenues and expenditures allocable to n --i the operation and maintenance of the building together with a list of all new programs or capital projects Ln which should be undertaken within the building during the next fiscal year. Expenditure estimates shall be -cc U- broken down by: (1) personal services; (2) materials and supplies; (3) contractual services; and, (4) CD capital outlay. Estimated expenditures should be further detailed by the objects of expenditure listed in Paragraphs E and F of Section 7. B. The City shall adopt a budget for the building prior to July 1 of each year. The City shall provide centralized accounting for all Visitor Center expenditures in the General Fund. All accounts payable shall be paid by the City on written request of the Chamber's manager, subject to appropriations for such purposes in the City's budget and the guides provided at Section 7 of this Agreement. L�j C. The City Treasurer shall bill the Chamber for its share of the operations and maintenance < expenses within 30 days after the account has been paid by the City. Such invoices from the City shall IZ: be due and payable upon receipt. If not paid within 30 days of the billing date, all past due accounts shall bear interest at 10.5% per annum from the billing date. D. The City Treasurer shall provide the Chamber with a monthly financial statement showing the amounts budgeted for the various objects of expenditure and the claims paid for the previous month. In addition, the Chamber shall be entitled to a copy of the City's Annual Financial Statement which shall include a schedule of revenues and expenditures for the building showing a comparison of budget and >- actual results of operations for the previous fiscal year. :M L'i E. The Chamber shall effect every reasonable economy in the daily operation of the facility. In the event approved budgets of the City or the Chamber will not provide sufficient funds for the Chamber to reasonably perform its obligations pursuant to this Agreement, notice of such deficiency shall be given to the City Council as soon as reasonably possible. (1) In the event an operating funds deficiency is caused by a failure of the City to appropriate sufficient funds or by policies and requirements requested by the City which are beyond the scope of this Agreement, the City Council shall consider a supplemental appropriation ordinance to revise the budget consistent with the requirement for additional funds. (2) In the event an operating funds deficiency is caused by factors within the Control of the Chamber, it shall be cause for termination of this Agreement. Section 9. Term. The term of this Agreement shall commence upon April 1, 1988 and shall continue until March 31, 1993. The Chamber shall have the right and option to extend this Agreement on the same terms and conditions for three (3) successive five (5) year terms for a combined allowable duration of twenty (20) years. Alternatively, the Chamber and the City may extend this Agreement for such additional terms and upon such other or different conditions as both partes may mutually agree upon subject to the approval of EDA. City of Soldotna 7 Ap(il 8, 1988 Property Management gement Visitor Information Center Section 10. Concessions. The Chamber may provide visitor or community promotion related concessions within the facility. These concessions may be provided directly by the Chamber or by subcontract between the Chamber and other organizations. Income from concessions shall be propedy accounted for M with the annual budget request and dedicated to beautification projects within the City of Soldotna in order to assure that the use of the building will always serve a npublic" purpose. <: Section 11. Insuranice Ln A. The Chamber shall provide statutory Workers' Compensation and Employer's Liability Insurance and Unemployment Compensation Insurance and keep said coverages in effect at all times during the term of this Agreement and any extension term. CD Ca CD B. The City shall provide and keep in force such other insurance coverages as it may deem necessary to protect the City, the Chamber, its officers and employees from claims arising out of, incident to, or in connection with this Agreement; including claims related to general liability and property damage. Section 12- Cancellation/Tennination. A. This Agreement shall be subject to cancellation or termination for cause by either the City or the Chamber on thirty (30) days written notice to the other party specifying the reasons therefor. Any such notice shall be delivered in person or by certified mail addressed to the persons specified in Section 17 of this Agreement. B. Non-performance of the Chamber or the City of any of the covenants or conditions of this Agreement undertaken herein shall be cause for termination. C. At the expiration or sooner termination of this Agreement, the Chamber shall peaceably and quietly quit and surrender the premises to the City in good order and a broom clean condition and the City shall occupy said premises as in the first and former estate. D. 'The parties specifically agree that provisions for Forcible Entry and Detainer under AS 9.45, Article 2 shall be the procedure whereby recovery of the property shall be had, in the event of a dispute between the parties. Section 13. Compliance with Applicable Laws The Chamber shall in the performance of this Agreement comply with all applicable federal, state and local laws, ordinances, orders, rules and regulations applicable to its performance hereunder, including without limitation, all such legal provisions pertaining to social security, income tax withholding, workers' compensation, unemployment compensation and other employee benefit laws. City of Soldotna 8 Ap(1I 8, 1988 r� "0 cr) a) V) C) <3� cl� LIN . Property Management Ceement Section 14. Records and Audit cVisitor Information Center 0 on E C 1�, -, 3 r�J?7- E 0 4 5 Chamber agrees to maintain sufficient and accurate records and books of account showing all costs incurred in the performance of this Agreement and the same shaJI be subject to inspection and audit by City at all reasonable times. All such records and books of account pertaining to any work performed hereunder shall be retained for a period of not less than two (2) years from the date of completion of services to which this Agreement relate. Section 15. Forrn of City Approval Except as otherwise provided in this Agreement, the City's requests and approvals, and the Chambers cost estimates and descriptions of work to be performed, may be made orally where necessary, provided that the oral communication is confirmed immediately thereafter in writing. Section 16. Inspections by City The C4 has the right, but not the duty, to inspect, in the manner and at reasonable times it considers appropriate during the period of this Agreement, all facilities and activities of the Chamber as may be engaged in the performance of this Agreement. Section 17. Notices Any official notice that either party hereto desires to give the other shall be delivered through the United States mail by certified mail, return receipt requested, with postage thereon fully prepaid and addressed as follows: Mayor City of Soldotna 177 North Birch Street Soldotna, Alaska 99669 To Qhamber: President Greater Soldotna Chamber of Commerce P.O. Box 236 Soldotna, Alaska 99669 The addresses hereinabove specified may be changed by either party by giving written notice thereof to the other party pursuant to this paragraph. Section 18. Venue/Applicable Law The venue of any legal action between the parties arising as a result of this Agreement shall be laid in the Third Judicial District of the Superior Court of the State of Alaska and this contract shall be interpreted in accordance with the laws of the State of Alaska. Section 19. Attorney's Fees In the event either party institutes any suit or action to enforce its rights hereunder, the prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs in such suit or action and on any appeal therefrom. City of Soldotna 9 April 8, 1988 CF) C) CD CD L.) V) CD LJ I CD Ln ::D Cr 't? Property Managemen `(- reement Section 20. Waiver Visitor Information Center Errr,,'M.-�,446 No failure on the part of City to enforce any covenant or provisions herein contained, nor any waiver of any right hereunder by City, unless in writing and signed by the parties sought to be bound, shall discharge or invalidate such covenants or provisions or affect the right of City to enforce the same or any other provision in the event of any subsequent breach or default Section 21. Binding Effect The terms, conditions and covenants contained in this Agreement shall apply to, inure to the benefit of, and bind the parties and their respective successors. Section 22. Normsignabifity Neither party may assign any interest in this Agreement without the express written agreement of the other party. - Section 23. Entire Agreement/Modification This agreement constitutes the entire Agreement between the parties with respect to the subject matter hereof, and all prior negotiations and understandings are superseded and replaced by this Agreement and shall be of no further force and effect. No modification of this Agreement shall be of any force or effect unless reduced to writing, signed by both parties and expressly made a part of this Agreement IN WITNESS WHEREOF, the parties hereto have hereunto set their hand as of the day and year first above written by their duly authorized officer. PASSED and APPROVED b th Board of Directors of the Greater Soldotna Chamber of Commerce on the Z&11��-h day of L- �1 1988. PASSf,D_and APPROVED by the City Council of the City of Soldotna, Alaska on the day of 2 , 1988. CHAMBER: GREATER SOLDOTNA CHAMBER OF COMMERCE By: 2� Valerie Edmundson, President Attachments Suggested Budget for the 1988/1989 Fiscal Year "Geffiffl— A .,, Wee hilaintem"ee aqd Use CITY: CITY OF SOLDOTNA, ALAS17) By: Doll �M' Farnsworth, Mayor City of Soldotra 10 �M* Property Management eement C Visitor Information Center LIn U- 2-1 CD CD F-- CD C3 CD L�j L-j 7-) (7), LJ cl- STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT ) 03 0 47 The foregoing instrument was acknowledged before me this 1� day of 1988, by Dolly M. Farnsworth as Mayor of the City of Soldotna on behalf of the City. J Notary Public for the Statobf Alaska My Commission Expfres':: ACKNOWLEDGMENT STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ��, day of P� Q,� � L , 1988, by Valerie Edmundson as President of the Greater Soldotna Chamber of Commerce on behalf of the Chamber. 0,0 T Notky Fqjblic for the, State of, Alaska, My Commission City of Soldotna Property Management eement Visitor Information Center A48 Visitor Inforrnation Center EDA Project No. 07-1 1-=1 2 Cr City of Soldotna, Alaska OPERATING BUDGET FOR THE 1988/1989 FISCAL YEAR EXPENDITURES: CD V1 Personal Services: U- Wages, Benefits & Training for Visitor Center Staff $ 8,155 C) C:) St LJ V1 Office Supplies .200 Building Repair and Maintenance Supplies 400 Postage 900 Contracted Services: Electricity 4,000 Natural Gas 1,800 <: Water & Sewer 550 Refuse Collection (2yd dumpster @ 54.821month) 660 Janitorial Services 3,500 General Liability & Property Insurance 2,500 Building Repair and Maintenance Services 1,000 Common Area Maintenance Expenses 3,000 17,010 Capital Outlays: Interior Display Enhancements 1,000 Exterior Landscapinoeautification L.j LLJ' $29,565 CT L-j ct� MEANS OF FINANCING: City of Soldotna: 65% 19,217 Soldotna Chamber of Commerce: 35% 0 0 4 4 3 3 10,W C3 Cr. C) -------- $29,565 Qj ECORDE, - r--,Z —r Lj C. 14 "1 '. E D I S T:-� I CT jW 8 56 R E U U E'-� � ED a ADDRESS City of Soldotna 12 April 8, 1988 Kenai Chamber of Commerce History of Visitors Services The Kenai Chamber of Camierce has provided visitor services for many years. In the earlier years, the Chamber office was located in the Carrs Kenai Mail and service was given as a convenience for tourists coming to our town and. wishing to see the attractions in the local area. In 1976, the Chamber moved to its present location iii Moose Meat John's cabin, taking visitor services with it. Later, brochures were designed to promote tourism on the Peninsula and in Kenai. Members of the Chamber who provided services for tourists such as fishing and accommodations were encouraged to display their brochures and widen the tourism opportunities in the local area. Initially, only some state grants helped with visitor service expenses, but in the early 1980's the City of Kenai started assisting with visitor services with approximately $5,000. over the years, tourist numbers grew steadily and services expanded to match. Rather than only being a summer service to local visitors, a substantial amount of time was required throughout winter and spring answering mail and telephone enquiries for people planning tours and vacations the following summer. A substantial number of relocation enquiries have been received over the last several years and our "Cam Home to Kenai,' brochure was widely distributed to potential residents. Caravan tours became popular and have continually expanded. Up to 200 vans may come in convoys of 20 to 60 to Alaska and spend time in various locations. Kenai. is on the map for several of these tours and we provide organized parking and utilities for these groups. The number of tourists has continually grown aver the past decade, with an explosive expansion in the last three years. Our visitor numbers average approximately one hundred per day from June to September, with a maximum of close to 200 in July. The City subsidy has grown with the tourism load and is now $26,000. The City's contribution along with small state grants contributes about half of the cost of visitor service. In 1985,the Kenai Chamber helped establish the Visitors and Convention Bureau, renamed to the Bicentennial Visitors and Convention Bureau (BICI). This organization was formed to provide visitors services and also to promote the celebration of the Kenai Bicentennial. BICI, along with the City was successful in obtaining a grant for a visitor and cultural building. The Kenai Chamber has continued to provide visitor services while the grant and construction of -the new facility has been proceeding. The Chamber has planned to cease operating visitors services upon completion of the Bicentennial Visitors and Cultural Building by January 1, 1992. our funding expires at that time and we have established a transition committee to help provide an orderly transfer of visitor services. The Chamber- takes pride in the way it has helped promote the area as a visitor destination and helped in making our visitors feel welcome when they do stop here. We look, forward to the opening of the new facility and the continued excellent visitor service that we expect the Bicentennial Visitors and Convention Bureau to provide. Sincerely, Bill Coghill, President Kenai Chamber of Commerce 42 lie' / �7 , Z?,W, Ileo Ol /50 -4,- ,zK,q� '1Z I 16, Zl� 7A, '6� 4��e ' llle� 7^2 1-4-1 ell '94 4, , '�y , Z17 A-i 67 Al� f -e 7.5 -fy 74 ho�