Background

Since its re-organization in 1992, the Homer Hockey Association (HHA), together with hundreds of parents and volunteers, have battled valiantly to sustain a skating and ice hockey program against the obstacles of very limited facilities and unreliable ice due to mild weather periods. HHA has dreamed for many years about building a new indoor or covered ice arena with reliable ice in Homer. HHA has taken the lead in spearheading an initiative to build such a facility by searching and evaluating land sites, naming a project manager and holding a variety of fund-raising events.

The City of Homer seeks to promote the development of recreational and cultural activities within the community. It has demonstrated strong support for this project over the years. This support has included placing the project on the City’s CIP and Federal Project Request lists, grant-writing and general fund-raising support, direct appropriations, procurement of used equipment, and coordination with the Arctic Winter Games Committee. The City anticipates that the new facility, when constructed, could be used for other activities and events in the spring and summer months.

As a community service, Homer Electric Association (HEA) decided to make a centrally located land parcel available to HHA for an indoor ice rink on terms which would allow the Association to postpone land purchase costs until after needed site work and facility costs were paid. Accordingly, on March 7, 2002, HEA as Lesssor entered into a Lease Agreement (“Lease”) with HHA as Lessee for Lot 2, Waddell Park 2000 Subdivision in Homer – ideally located for community recreation and other community activities. On the same day, the parties also entered into a Real Estate Contract (“Purchase Agreement”) in which HEA sells the property to HHA on or before March 7, 2009. Copies of these agreements are attached to this Memorandum.

The City and HHA share the common goal of constructing a new facility in Homer for ice-related and non-ice-related activities. In the course of planning programs for this new facility, it became clear to the City and to HHA that a more formal, structured partnership was in order. Both parties recognize the value in coordinating their efforts in order to promote efficiency and maximize the use of limited resources.

Purpose of This Memorandum

The purpose of this memorandum is to specify terms under which the City and HHA will collaborate in facility planning (including engineering, final design, and permitting), fund-raising, constructing, and operating a multi-use facility. The anticipated uses include diverse ice-related activities (hockey, curling, figure skating, etc.) from September through March and general recreational and community uses from April through August.

Specific Terms of the Memorandum of Understanding

Homer Hockey Association and the City of Homer hereby agree to the following roles and responsibilities of the respective parties:

Duties and Responsibilities of the City of Homer

1. The City will assume responsibility for both the lease and purchase agreement and work with HEA and HHA in securing appropriate funding for the purchase of the land described in the real estate contract referenced above. While it is understood that it is the intent of the City to purchase this property, certain prohibitions in municipal law limit the City’s ability to make a full commitment to do so at this time. As a consequence, the City reserves the right to re-negotiate the lease and/or purchase agreement with HEA for the purpose of developing new language with respect to the proposed purchase by the City.

2. The City will ultimately assume ownership of the land and all improvements thereon.

3. The City will assume primary financial management responsibility for all aspects of the project. This may include, but is not limited to, holding and investing funds dedicated to the project, management of construction contracts, M&O costs, insurance, staffing, utilities, depreciation, and related items.

4. The City will assist in the fund-raising effort by providing staff support and grant-writing technical assistance. The City will also make a concerted effort to secure funding through the Arctic Winter Games capital campaign and through lobbying state and federal officials.

5. The City will be responsible for the engineering, preparation of plans and specifications, and construction of all Waddell Way improvements.

6. The City will work with HEA to secure the additional 30 feet of right-of-way required for the Waddell Way improvements.

7. The City will be responsible for engineering, preparation of plans and specifications, and construction of all infra-structure required to furnish water for potable and fire protection uses and to convey waste water from the newly constructed facility or facilities to the existing sewerage collection system.

8. The City will maintain Waddell Way, maintain the water and waste water systems servicing the site, and remove snow from Waddell Way, access driveways and parking lot servicing the site.

Duties and Responsibilities of Homer Hockey Association

HHA will assume primary responsibility for fund-raising and for the public relations, education, and publicity campaign.

HHA will assume primary responsibility for the facility plan, including its design, engineering and construction, but not including items 5, 6 and 7 under Duties and Responsibilities of the City of Homer. HHA will also assume primary responsibility for permitting activities. (See attached plans – 2 sheets)

HHA will provide technical assistance to the City and be a partner in all aspects of the project, including finance, construction, operations, and maintenance.

HHA will be the primary tenant of the facility from September through March.

HHA will reimburse the City for water and sewer service HHA uses during the ice-skating and hockey season.

HHA will pay Homer Electric Association for electrical service charges incurred during the ice-skating and hockey season.

HHA will be responsible for all solid waste collection and disposal and other maintenance activities during the seven months of the ice skating/hockey season.

Joint Responsibilities of the Parties

1. HHA and the City will collaborate on developing and approving all building and site plans necessary to make the specific site improvements required for the facility. Site improvements include necessary excavation, placement of gravel, placement of necessary sub-surface drain tile, construction of the ice rink, construction of ancillary buildings needed for ice rink operation, and final grading. These improvements will be subject to all applicable local, state and federal laws consistent with the requirements of the Arctic Winter Games. These improvements will also be made in a manner which complies with current DEC requirements to monitor soils and/or groundwater for the presence of residual contamination. A committee will be established to review plans, designs, specifications, and budget and submit them to the City Council for approval. This committee will include at a minimum the City Manager, the Public Works Director, Finance Director and at least 3 members appointed by HHA.

2. The City and HHA will collaborate on any site or facility improvements necessary to provide for anticipated activities at the facilities that are unrelated to skating or ice hockey.

3. The City and HHA will draft an agreement to be incorporated herein which addresses the allocation of potential revenues from rents, concession contracts, and the like that may accrue after the facility is constructed.

4. The City and HHA will develop a working agreement with respect to the planning and scheduling of activities and events at the facility. In general, the City will be responsible for planning and scheduling activities in the facility during the months of April through August. HHA will be responsible for planning and scheduling activities in the facility from September through March.

This Memorandum of Understanding is mutually agreed to by the parties as shown by the following signatures.

FOR THE CITY OF HOMER DATE

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FOR THE HOMER HOCKEY ASSOCIATION DATE

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