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HomeMy WebLinkAbout2004 City Council MinutesCity Council Minutes City of Seward, Alaska Volume 36, Page 307 January 12 2004 Call to order The January 12, 2004 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David Brossow. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: David Brossow presiding, and Margaret Branson Linda Amberg Vanta Shafer Bob Valdatta Kevin Clark Willard Dunham comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Brad Meyen, City Attorney Absent - None Organizers of the 19` Annual Polar Bear Plunge summarized events to begin Saturday. Proclamations and Awards. A proclamation was read and presented to Centennial Coordinator Sandra Wassilie for two years of dedicated work coordinating Centennial events for the City. Borough Assembly Report. Borough Assembly Representative Ron Long stated the Assembly had met three times since Council's last meeting. They heard the first of three hearings considering a flat tax on aircraft. He stated the Borough consummated the sale of 14 acres to the Cooper Landing Seniors, and supported a resolution for the State to buyback gas and methane leases on the South Peninsula and would look into regulations on those sales. Long understood Senator Gary Stevens and Representative Paul Seaton had introduced similar legislation at the state level. The Assembly had also considered funding co- curricular activities for the schools. Long stated the question was, should the Borough fund those activities and how? A resolution was sponsored, and mail out ballots should go out to the voters by March 8. He stated the Borough had signed onto the letter being circulated by AML and other entities that proposed the following three elements of a fiscal plan; 1) identifying further budget cuts knowing that cuts alone would not take care of the problem, 2) support the POMV concept and use part to fund state government, or 3) look at a broad base tax of some form. City of Seward, Alaska January 12, 2004 City Council Minutes Volume 36 Page 308 In response to Valdatta, Long stated there were a few big sponsors for the 2006 Arctic Winter Games. The money went to the host society. Long informed the criteria for capital projects were previous identified and already partially funded. Seward would've had to have a project already started to acquire some of the events. City Manager's Report. City Manager Phil Shealy reported the City had hired a new patrol officer recruit who resigned right away. The position was being re- advertised. Shealy stated the University of Alaska Fairbanks Seward Marine Center was inviting all to meet the three final candidates for the position of Dean of School of Fisheries and Ocean Sciences. Each candidate would visit and give a presentation at the KM Rae Building on P Avenue. Forest Acres Waterline. The Schafer "s had provided a written utility easement for alternative #3 waterline which matched their plat. The plat had been reviewed and approved by the Planning and Zoning Commission subject to conditions which included a signed subdivision agreement. The KPB Planning Commission would review, but the plat could not be recorded until the subdivision agreement was completed. The City would be advertising for construction by this spring. East Harbor Expansion. On Friday, January 9, the Corps of Engineers completed review of bid documents with Wilder appearing to be the low bidder. The Corps hoped to award the contract within the next two weeks. The City has enough money to cover the Corps match and dredging. An additional three million was needed to complete the float installation. North Forest Acres Road Levee. The City had received a letter of "Finding of no significant impact" ( FONZI) by the project funding agency, NRCS. This FONZI gave the city the green light to apply for permits to begin the process to construct the project. Shealy would apply for a wetlands permit from the U.S. Army Corps of Engineers, a Habitat permit from the Alaska Department of Fish and Game, and a floodplain permit. The City would not move forward with the right -of -way (ROW) acquisition until necessary permits were in hand. He was hopeful this process would take about four months. Once granted the necessary permits, the City would proceed with the ROW acquisition for the project, and bid the project for construction. Shealy stated unless there was a change requested by Council, the project alignment already decided on would stand, and applications for permits would go out. In response to questions, Shealy stated the road/levee surface would be a combination of hard surface on top of a dike. It would be designed as a street for truck traffic. He reminded that a compromise was reached last year. In response to questions from Shafer, Shealy wanted to see if Wilder would utilize the 4th of July quarry rock for the harbor expansion. If so, he thought they would be in the quarry for a year or so. If they chose not to use the rock, staff would revisit getting someone else to operate in the quarry. Dunham stated there were three property owners unhappy with the location of the North levee road in Forest Acres. He felt the City was somewhat blackmailed into compromising from the preferred northernmost route. City Council Minutes City of Seward, Alaska Volume 36, Page 309 January 12 2004 Shealy was advised by the environmental consultants that if the City did not accept this route that would necessitate another environmental assessment, delays of 4 years, and more costs added. He stated the agencies would not accept the northernmost route and believed this compromise proposed the most likely. Shealy noted the City had wanted this project for 20 years, and had been working on it for 4 -5 years. He thought the road would be approximately 250 feet from any of the structures on lots LLI and LL2. The property owners wanted the location another 200 feet to the north. The City had spent $300,000 of federal money to date and the jag in Japanese Creek would be re- located to the north of the levee. Shealy provided a map showing what was proposed and what was compromised on. Clark lived at lot RR and stated this was the first he had seen this proposal. He felt it was not solving a problem because it would just move traffic from one street to another. Dunham stated the high speed traffic was not the truckers. He thought this was a good thing because commercial trucks should not be going through the heart of a residential subdivision. In response to questions from Clark, Shealy stated if this proposed route was used, lots DB, DC, DE, and DF would never be developed and the city would acquire the access. Shealy recommended the City apply for the permits within the next several months. His notes showed this compromise being agreed to by most that were impacted on June 16, 2003. Manager of Engineering Gerry Welsh stated a ROW agent would attempt to negotiate a fair price with property owners. NRCS would pay for the right -of -ways. He noted there were specific guidelines on what they could pay, and hoped negotiations would go smoothly. Welsh notified that the staff would go forward and seek the necessary permits. Council expressed the desire to locate the levee further north if possible. City Attorney Report. City Attorney Brad Meyen stated their past report was mostly taken up by the holidays. They had worked on a few amended ordinances and resolutions for the new year. School Board Report. Board Member Sandra Wassilie stated she had one meeting on January 5. The Board approved a budget revision for the current FY 04 general fund. That incorporated changes in personnel, additional health insurance costs with revenue that came in from increased enrollment. She said most of the balancing came from an appropriation to the Fund balance. The Board also tabled any proposed changes in the graduation requirements. Wassilie's understanding was that they would leave the requirements alone, but did approve a modification in the science requirements where one credit would be in physical sciences, and one in the life sciences. Wassilie stated they approved two resolutions to send to the legislature. One provided fiscal notes on any acts that would impact the school district or local government, and the other supported early funding for $4500 base allocation for FY 05. Wassilie felt this early funding could be problematic by allowing for early funding, but she was afraid the base allocation amount would not be addressed. She stated the budget review process began. Public forums on the budget would be City of Seward, Alaska City Council Minutes January 12, 2004 Volume 36 Page 310 held around the peninsula, with a hearing in the Seward High School auditorium on Thursday January 15 at 7 pm. Wassilie declared there was a 6.7 million dollar budget shortfall going into 2005. She also mentioned the proposition going to voters for the Borough to fund co- curricular school activities. In response to questions, Wassilie informed the School Board supported legislation, but was not a revenue generating body Other Reports, Announcements and Presentations PACAB Annual Report given by Chair, Deborah Altermatt. Altermatt outlined and reviewed their project list and stated PACAB would continue to further enhance and increase economic growth and stability for the community. She was optimistic for the upcoming year, and requested affirmation for another year on behalf of the Board. The New Forest Service District Ranger, Deb Cooper introduced herself to Council and the community. She was looking forward to all the area projects, and instructed her door was always open for any comments or concerns. Shannon Hohl, senior class president, read a letter and was asking for a donation to represent the community in the Presidential Classroom in Washington D.C. She needed to raise $1,500 to cover expenses. Council unanimously supported donating $500 from their travel fund. Citizens' comments on any item not scheduled for public hearing. - None Approval of agenda and consent agenda Motion (Dunham/Branson) Approve the agenda and consent agenda The following was removed from the consent agenda and placed on the regular agenda. Resolution 2004 -03 amending Rule 41 of the City Council Rules of Procedures updating the deadlines for budget priorities and policies. The Port and Commerce Advisory Board were continued by affirmative vote for the upcoming year through January 31, 2005. Motion Passed Unanimous The Clerk read the following approved consent agenda items: The December 8 regular city council meeting minutes were approved. Non - objection of a liquor license renewal for The Wheelhouse, also known as DJ's. City Council Minutes City of Seward, Alaska Volume 36, Page 311 January 12 2 004 _ Council took a break at 8:45 pm Council reconvened at 8:55 pm Public Hearings A. Ordinances for Public Hearing and Enactment Ordinance 2003 -09, amending the Seward City Code 15.10.140 definitions to provide a definition for Mobile Medical Units. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to speak and the public hearing was closed. Shafer declared a possible conflict because of employment and appearance and wished to abstain. Mayor Brossow ruled and allowed Shafer to abstain from discussion and voting. Motion (Branson /Dunham) Approve Ordinance 2003 -09 Shealy stated at the November 5th meeting, the Planning and Zoning Commission passed a resolution recommending a definition for mobile medical units. Administration recommended removing the last sentence of the definition, and requested approval. Motion to Amend (Branson /Dunham) Remove the last sentence, "The units are structures for lot coverage and setback purposes in accordance with Title 15." Amendment Passed Yes: Clark, Amberg, Dunham, Valdatta, Branson, Brossow Abstain: Shafer Dunham felt the next sentence up wandered instead of staying to mobile medical units, and requested its deletion also. Branson reported this was an important issue to Planning & Zoning because they were afraid other practitioners could then locate similar units on vacant lots. Motion to Amend (Dunham/Clark) Remove the sentence, "Does not include medical or dental practitioner's offices, clinics or other treatment centers, or storage facilities ". Amendment Passed Yes: Clark, Dunham, Valdatta, Branson, Brossow No: Amberg Abstain: Shafer City of Seward, Alaska City Council Minutes January 12, 2004 Volume 36 Page 312 Main Motion Passed Yes: Clark, Amberg, Dunham, Valdatta, Branson, Brossow Abstain: Shafer B. Resolutions requiring public hearing Resolution 2004 -01 authorizing lease amendment #2 to lease RE -97 -107 Saltwater Safari extending the lease term to January 11, 2034. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to speak and the public hearing was closed. Motion (Branson /Shafer) Approve Resolution 2004 -01 Shealy stated Bob Candopolous was expanding his business and updating the building to obtain more favorable financing. He wanted the change in the lease terms from expiring in 2017 to 2034. The lessee was current on all taxes and the property did not need an appraisal until next year. Shealy recommended approval. Harbormaster Jim Beckham responded to Branson that the first floor footprint would remain the same. The addition of a second story would cantilever over the existing boardwalk to the edge of his property. He stated any setback requirements should have already been addressed because he had a building permit and was in the construction phase already. Beckham answered that the lessee would have to meet the city code height requirements for the Harbor Commercial District. In response to Valdatta noticing the lease was extremely reasonable, Beckham stated those properties were appraised in 2000 and would be re- appraised in 2005. He advised the rate was 8% of the fair market appraised value. The land was appraised at the highest and best use which was a shoreside business. Motion Passed Unanimous Unfinished business - None New Business Resolution 2004 -02 authorizing the City Manager to authorize the engineering firm of Dryden & Larue to continue engineering services on the relocation /reconductoring of the 69 KV transmission line and the 12.5 KV distribution line between miles 3.0 and 3.5 for an additional fee of $14,500 changing the total authorization for this project to $71,500. Motion (Dunham/Branson) Approve Resolution 2004 -02 Shealy notified that DOT was updating the three bridges on the Seward highway. This new construction impacted the city transmission and distribution lines located adjacent to the bridges. He stated in August 2002, this company was retained to complete design of the powerline relocation. Sections of the existing line to Nash Road needed to be replaced in the foreseeable future. Shealy City of Seward, Alaska City Council Minutes Janua 12 2004 Volu 36, Page 313 believed it was prudent to rebuild this section at the same time, and requested council authorize $14,500 to extend the contract to design this additional 2100 feet of line. Shealy stated the City would be reimbursed but not for the $14,500 being requested. This change took advantage of the contractor already being here. Manager of Electric Utilities Dave Calvert stated this extension would correct the inoperable switch at Mile 3. Motion Passed Unanimous Resolution 2004 -03 amending Rule 41 of the City Council Rules of Procedures updating the deadlines for budget priorities and policies. Motion (Branson /Shafer) Approve Resolution 2004 -03 City Clerk Jean Lewis had this pulled from the consent agenda to explain she had found a conflict with the change and the Charter. Although she did not feel the approval of this resolution made a difference because it was conflicting with the wording of Rule 41 now, she wanted council aware of it. The Charter language in 6.2 indicated only half of the section had been updated after the passing of a proposition that went to voters in 1998. Lewis would research the issue and hoped it was just an oversight that could be easily corrected without voter approval. Motion Passed Unanimous Resolution 2004 -04, authorizing the Seward Fire Department to purchase 40 self contained breathing apparatus with accessories through Eagle Enterprises Motion (Shafer /Amberg) Approve Resolution 2004 -04 After further research, Shealy stated possibly a lease /purchase would be a better way to go. If the SCBA's were purchased all at one time it would be $150,000, but a lease over a 7 -year period of time would be $27,000, which increased the Fire Department budget by $12,000 this year. He thought the City should pursue leasing to allow all units be replaced at the same time, and all equipment would be the same which was important. Branson did not want to be critical of the need for the self contained breathing apparatus' but stressed an RFP should have went out from the beginning and was not happy with the apparent slippage. Fire Chief David Squires stated the Fire Department had applied for the same grant as Moose Pass but were turned down. They could re -apply in May of 2004 for other needed equipment if it was decided to lease /purchase. Squires pointed out Seward had 45 fires in 2003. Shafer announced that safety should not be compromised. She wanted to see an RFP and asked if half would keep the fireman safe and could be ordered instead. City of Seward, Alaska City Council Minutes January 12, 2004 Volume 36 Page 314 Squires stated the amount requested was for the amount of seats on the vehicles, not firemen. All vehicles had to be fully equipped so no one received an outdated air pack. That number was 38 with only 2 spares. The fire department currently had 38 air packs. Valdatta Was happy with Eagle Enterprises. He thought the company had a good reputation. Squires stated the cylinders had to be inspected on an annual basis. This increased the maintenance budget by breaking these down each year. The cylinders were coming up on the end of their life. He requested this resolution be pulled for tonight and brought back later. Motion (Branson/Dunham) Postpone to a time certain of Monday, February 23, 2004. Squires assured fireman safety would not be compromised. Council requested an RFP be put out. Motion Passed Unanimous Resolution 2004 -05 re- appropriating $5,950 unspent in FY 2003 for the purchase of turn out gear for five firefighters. Motion (Dunham/Shafer) Approve Resolution 2004 -05 Shealy stated this was anticipated to be spent in 2003 and was approved in that budget. Due to delays in implementing the sales tax, all departments were asked to hold all purchases until after that. In September the fire department placed the order. Shealy had been notified that delivery would not occur until mid - January. Since accounting principals only allowed this to be charged to 2003 if the merchandise arrived in the same year, he asked for the money to be re- appropriated in 2004. Motion Passed Unanimous Resolution 2004 -06, authorizing the City Manager to purchase a John Deere 4410 Tractor from Craig Taylor for an amount not to exceed $25,750.00 and appropriating funds Motion (Branson /Dunham) Approve Resolution 2004 -06 Shealy stated DEC requested the city develop a continual maintenance and pest control program for the water and sewer treatment facilities. Staff had obtained sealed bids for the tractor, but delivery could not occur before the end of the fiscal year. Shealy requested council appropriate the funds that were in last year's budget. Public Works Director WC Casey reported the tractor would be used for brush cutting on both sides of the bay in the summer, and across the bay all winter also. He reported that DEC highly recommended this vehicle to keep the facilities clear. There were health and safety issues involved along with maintenance costs. Casey stated snow removal inside the fence was done with a shovel, City of Seward, Alaska City Council Minutes January 12 2004 Volume 36, Pa 315 and brush cutting was done by hand. With the slope grade on the mound of the facilities the existing equipment could not reach. He wanted to buy a piece of equipment that would cut the alders that had grown up around the facility also. It had become too time consuming on man power. Dunham stated the company just could not produce the tractor last year. Much discussion ensued on troubles with operation and maintenance issues. Motion Passed Yes: Clark, Dunham, Valdatta, Branson, Shafer, Brossow No: Amberg Resolution 2004 -07 authorizing the City departments from Kenai Chrysler Center Transportation contract #1661087 for $99,755 Motion (Branson /Shafer) Manager to purchase vehicles for various using the State of Alaska Department of Approve Resolution 2004 -07 Shealy mentioned there were four replacement medium utility truck vehicles in the FY 04 motor pool budget. These vehicles to be replaced funded their own replacement. He proposed to use the state contract which ended up several thousand dollars less than when first purchased in 1999. They had transmission troubles after the recent re- building on the 1994 pickup. Shealy stated after awhile there was no trade -in value and you were just putting good money after bad. He requested trade -in of the trucks to reduce the price, utilization of the state contract, and approval out of the motor pool fund. hi response to Amberg, Shealy stated three were replacement vehicles and one additional vehicle because there were four operators to one utility truck in that department. The city had tried to sell vehicles instead of trade -in before. Casey stated at the last surplus auction there were three vehicles that no one bid on, so they were given to the State of Alaska maintenance department. He needed to get a fair price negotiated for trade -in, and all four vehicles were gas engines. The diesel to be replaced had been a lot of trouble. Clark wanted to know the year end totals of last years' budget and questioned why the city was spending so early in the year with other major projects coming up. Valdatta approved piggybacking onto the state contract. In response to questions, Casey stated they obviously would get a better deal by purchasing four, but they could also get a good deal purchasing one. He noted one of those vehicles was driven seven days a week, with others driven at least 5 days a week. City of Seward, Alaska City Council Minutes January 12, 2004 Volume 36 Pale 316 Amendment (Amberg/Clark) Replace the three replacement vehicles in the motor pool budget but not the 4 th one. Amendment Failed Yes: Shafer, Clark, Amberg No: Branson, Valdatta, Dunham, Brossow Casey felt the city would pay now or pay later. With rising maintenance costs he thought these vehicles were needed. Main Motion Passed Yes: Branson, Valdatta, Dunham, Shafer, Brossow No; Clark, Amberg Resolution 2004 -08, authorizing the City Manager to purchase a used, Chevrolet Express Van from Seward Hertz for $17,000 and appropriating $2,000 from Teen Council account number 804 - 0000 - 3070 -0102 to the Motor Pool Fund Equipment account number 102 - 1020 -5930 Motion (Branson /Shafer) Approve Resolution 2004 -08 Shealy stated this vehicle also was in the motor pool budget, and requested approval. Amberg did not oppose the Teen and Youth Center, but only opposed because she did not think the City should be in the transportation business. Clark agreed with Amberg, and was concerned with our fiscal savvy. Dunham supported this and thought the Teen Center was important and it was a small pittance to improve the situation for all the users. Motion Passed Yes: Branson, Shafer, Dunham, Valdatta, Brossow No; Amberg, Clark Resolution 2004 -09, increasing and setting municipal camping fees. Motion (Shafer /Branson) Approve Resolution 2004 -09 Shealy stated this topic had been brought forward during the budget hearings. He recommended the fees change effective February 1, 2004. Dunham wanted the $30 fee adjusted. He said the city would be providing only half of the service in the winter. Branson thought it was worth the increase to get electricity in the winter since they would be using more during that time. Amberg felt the tent and RV could be increased a bit more because of added costs to City of Seward, Alaska City Council Minutes January 12 2004 V olume 36, Page 317 maintenance, plowing and sanding. Dunham stated most RVs in the winter were winterized and would not be running hot water. He wanted to entice people to come into town and not take advantage of them. He thought $30 was a significant jump. Shafer was satisfied with the $30 fee. She reminded that snow removal of the area would cost money to maintain. Amberg wanted our prices higher so the city was not in direct competition with outside area parks. Motion Passed Unanimous Other New Business Items Continuation by affirmative vote for the upcoming year, of the Port and Commerce Advisory Board through January 31, 2005. Branson wanted a work session to discuss some issues and the number of people on the Board. It was decided a combined work session would be held with PACAB and the City Council Wednesday, January 21, 2004 at noon in the upstairs conference room. Motion (Dunham/Clark) Continue the Port and Commerce Advisory Board through January 31, 2005. Motion Passed Yes: Clark, Dunham, Amberg, Valdatta, Shafer, Brossow No: Branson A work session to discuss garbage rates was set for Monday, January 26, 2004 at 6:30 pm. A work session to discuss the city health insurance plan with Willis was set for Thursday, January 22, 2004 at 7:00 pm. A work session to discuss port and harbor tariff rate increases and marketing was set for Wednesday, January 28 2004 at 7:00 pm. Informational items and reports. Seward Centennial Monthly Report for November and December 2003 by Sandy Wassilie. Report to the Alaska Legislature from the Department of Natural Resources on HB 96, Jesse Lee Home and Benny Benson Monument, Alaska Flag site, Seward, Alaska. City of Seward, Alaska City Council Minutes January 12, 2004 Volume 36 Page 318 Council Comments Amberg requested a written analysis on the cement floats and wished all a happy new year. Clark stated he would be on vacation from February 6th through the 20`', and thanked the police for all their hard work. Dunham would attend the January 22nd Kenai Peninsula Borough Economic Development District (KPB EDD) policy setting meeting. He informed that John Parker had been hired as EDD Director. He wanted the three fisheries to participate and air common problems at the work session on January 28, and also wanted to address the STIP. Valdatta wanted an ice skating rink incorporated with the downtown waterfront plan. He also wanted to investigate the possibility of raising the pay for council members because of all the work involved. Shafer wished all a Happy New Year. She hoped Seward would have another party sometime like at the start of the Centennial year celebrations, because it seemed to bring the community all together. Brossow also missed the New Year party from the year before and hoped it would be a good year for the community. Citizens' Comments Deborah Altermatt, thanked the city council for keeping PACAB for another year. She noted this was the 2 nd year in a row the continuation had been pulled from the consent agenda. She looked forward to the joint work session set up and thought it was a good idea to lay a good foundation to move forward with. Council and Administration response to citizens' comments. - None Adjournment The meeting was adjourned at10:55 p.m. C. David Brossow Mayor Jean Yewis City Clerk 0 -, �w. % o r gn 4 ,�� f> r (City Seal) •�"" �`� " ®�' ®RS, u p SDI • e C. David Brossow Mayor City of Seward, Alaska City Council Minutes _ January 26, 2004 Volume 36, Page 319 Call to order The January 26, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice Mayor Vanta Shafer. Opening ceremony Doreen Valadez led the pledge of allegiance to the flag. Roll call There were present: Vice Mayor Vanta Shafer presiding, and Margaret Branson Willard Dunham Linda Amberg Bob Valdatta Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Erin Leaders, Assistant City Clerk Absent— Mayor David Brossow Special orders, presentations and reports Proclamations and Awards -None Borough Assembly Report. Borough Assembly Representative Ron Long - Absent City Manager's Report. City Manager Phil Shealy passed out a memo from Jim Beckham regarding wood vs. concrete floats in order to provide background information for the work session scheduled to take place Wednesday January 28, 2004 at 7:00 p.m. in City Council Chambers. Shealy pointed out the mayor was absent because he was in Juneau attending a mayor's conference and would be meeting with our lobbyist and other representatives. The City had been working with the Lions Club for a snow machine jump scheduled for February 14` and 15` Shealy issued a public reminder that other groups and/or organizations intending to use public property for activities during this festivity or at any other time, would need to complete a facility use permit application and submit it to the City's Risk Manager. Shealy advised council that the Seward Hoops Tournament was a great success with two Anchorage teams winning the top prize. The event was part of the Wells Fargo Polar Bear Jump off Tournament. Shealy reported it was probably the best basketball tournament that Seward had seen. On behalf of Parks and Rec., Shealy extended a special thank you to the Wells Fargo Seward Branch City of Seward, Alaska City Council Minutes January 26, 2004 Volume 36, Page 320 and Manager Lori Draper for their generous corporate sponsorship providing an outstanding event that promoted competitive recreational basketball as a great life long sport. Valdatta commented on Gateway Texaco flooding every time it rains. He asked the City Manager why the state was not paying to correct the problem. In response to Valdatta, City Manager Phil Shealy stated he would talk to the public works director regarding that issue. Other Reports, Announcements and Presentations — The power point presentation scheduled to be given by the Institute of Marine Science was cancelled. Dunham stated the presentation may be rescheduled during the first part of March. Citizens' comments on any subject except those items scheduled for public hearing - None Approval of agenda and consent agenda Motion (Branson/Dunham) Approve the agenda and consent agenda Shafer postponed appointing Kevin Clark to the Waterfront Committee for the next scheduled City Council Meeting. Motion passed Unanimous The Assistant City Clerk read the following approved consent agenda items: Approval of the January 12, 2004 city council meeting minutes. Public hearings - None Unfinished business - None New business Resolution 2004 -10, authorizing the City Manager to increase the funding for William J. Nelson & Associates by $103,512 to allow for completion of the environmental permitting, the engineering, the right -of -way acquisition, the construction administration and inspection and the project closeout of the North Forest Acres Levee. Motion (Branson /Amberg) Approve Resolution 2004 -10 Shealy state the City of Seward had been working toward a solution of flooding problems in the North Forest Acres area for some time. The National Resource Conservation Service known as NRCS and William J. Nelson had assisted the City to comply with resource agencies requests for information, coordination and route identification. The City has had an ongoing contract with Mr. Nelson and in order to complete a number of tasks required to move ahead with actual construction, the administration requested an amendment to the contract in the amount of $103,512. There was City of Seward, Alaska City Council Minutes January 26, 2004 Volume 36, Page 321 currently over $213,000 of federal money to cover the pre - construction expenses and no local funds were required for the proposed change in the contract. In response to Valdatta, City Engineer Gerry Welsh stated the City had determined alignment and applied for permits for that alignment by the bridge. As part of the City's bargaining with NRCS to get their cooperation on the alignment, the City committed to restricting the traffic to dump traffic. In the pre - permitting stages of this project the City committed to the NRCS that they would restrict this to a truck route in order to take the trucks off of Dimond, reducing heavy vehicle traffic and therefore be less prone to failure. In response to Clark, Welsh stated the rationalization of putting the road farther north was the National Environmental Protection Act and the rules that surround it. The federal government did not participate in projects that would unduly harm the environment. Going farther north with the alignment would substantially increase the impact on wetlands and wetlands were avoided when there was a viable or reasonable alternative. Federal resource agencies make the determination of what a reasonable alternative was. Most projects involving federal money coordinate early with a number of resource agencies to determine what they would issue a permit for. Motion passed Unanimous Resolution 2004 -11, supporting efforts by the Alaska Natural Gas Development Authority maximizing benefits to Alaskans by barging Liquefied Natural Gas to coastal communities. Motion (Dunham/Branson) Approve Resolution 2004 -11 Dunham reported on the EDD meeting he attended in Nikiski regarding the delivery of North Slope natural gas to the Kenai Peninsula. The EDD is a 15- member board designated as a continuation of the statewide vote that was held 2 years ago authorizing the in —state gas line not to go down through the Yukon or down the Alaska Highway. The establishment of an LNG plant to be built in Valdez would bring gas to coastal communities such as Seward, Kodiak and Cordova. Dunham stated it would be worthwhile for the City to go on record of supporting the intent of this plan because it was the only plan so far offering gas at an estimated reasonable rate for coastal communities and he felt the City should consider this type of routing for natural gas. The report and final analysis of that report would be submitted to the governor on June 15, 2004. The plan was to build anon profit corporation to handle the natural gas down to coastal communities. Motion passed Unanimous Other New Business Council re- scheduled the work session on city health insurance with Willis, to take place February, 9 2004 at 6:30 p.m. Informational items and reports City of Seward, Alaska January 26, 2004 Providence Hospital Financial Report. Preliminary December budget to Actual Report. Council comments City Council Minutes Volume 36, Page 322 Amberg commented how great it was to have a half hour council meeting and stated we should have them more often. Dunham attended the EDD annual meeting to establish 2004 project list and met with the new economic director John Parker. He invited John to Seward to make a presentation and was surprised to see all the things they wanted to do. Willard advised council he had forwarded a status report of all the communities on the Peninsula to the City Clerk so she could forward it to council via email. Dunham also commented on the front page of the Daily News regarding how cities work on property evaluation for tax base and wondered if it was mandatory in Seward for property sales to be reported. Citizens' comments —None Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 8:05 p.m. Erin Leaders Assistant City Clerk t . J "6a Vanta Shafer Vice Mayor �10 •` 4 O Ob- City of Seward, Alaska February 9, 2004 Call to order City Council Minutes Volume 36, Page 323 The February 9 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor C. David Brossow. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: David Brossow presiding, and Margaret Branson Willard Dunham Vanta Shafer Linda Amberg Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Cheryl Brooking, City Attorney Jean Lewis, City Clerk Absent — Kevin Clark Special orders, presentations and reports Proclamations and Awards Award presented to Sherry Appel for dedicated service on the Historic Preservation Commission serving the people of Seward from February 2000 to October 2003. Certificate of Appreciation presented for Young An Park, General Manager of Seward Terminal Inc. Police certificate awarded to Alan Nickell. Borough Assembly Report. Borough Assembly Representative Ron Long was not present. City Manager's Report. City Manager Phil Shealy announced openings on the P &Z and Historic Preservation Commission. Other items of interest were as follows: City of Seward, Alaska February 9, 2004 City Council Minutes Volume 36, Page 324 ➢ Water Problem on North Harbor Drive. Shealy spoke with the city engineer about the water ponding on North Harbor Drive. He stated this problem was outside the DOT construction limits when they rebuilt Port and Fourth Avenue. However, necessary structure was in place for the city to extend pipe West toward Third Avenue. Shealy estimated the cost to extend pipe would be $20,000. ➢ East Harbor Expansion Project. The Corps of Engineers had awarded the harbor expansion construction contract on February 3` to Wilder Construction for $8,892,050.00. ➢ Open Houses. The ARR would be holding an open house on Friday, February 13, from 3:30 to 6:30 at the terminal to provide an opportunity to showcase capital improvement projects specific to the Seward area. Another open house would be held February 17 at the Sealife Center between 4 -8 pm. The U.S. Fish & Wildlife Conservation Plan was being revised. ➢ Police Vacancies. Shealy advised that Tom Boor had resigned from the police department, so there now were two vacancies to fill. ➢ Forest Acres Waterline. CRW had sent the 95% design plans on the Forest Acres Waterline. They were being reviewed and would go out to bid next month. He noted this waterline was important to move forward since it was needed for the new Middle School Project. ➢ Long -Term Care Facility. A letter of intent was submitted to the Denali Commission, requesting funds for the planning and design of the long -term care facility. ➢ Hospital Bond Re- funding. A resolution would be brought at the next meeting seeking re- funding of the 1996 hospital bonds. This would extend the final maturity of the bond to a 21 -year bond instead of a 16 -year bond, for a savings of $150,000 thus lowering the debt payment and provide flexibility to help fund the long -term care facility. ➢ DOT Road Improvement. DOT had earmarked two million dollars for Seward roads. Representative Rex Young indicated the money had been approved by Congress and signed into law by the President. DOT was in the process of getting legislative authorization through a supplemental appropriations bill. Once they received legislative authority a project manager would be assigned to obtain the funding from the federal government. Shealy felt the best use of the funds would be to set up a street paving fund. City of Seward, Alaska City Council Minutes February 9, 2004 Volume 36, Page 325 ➢ Growth Company. A morale and team building session was attended by department head staff, the police department, and correctional officers at Spring Creek, and would be provided by Lynne Curry of the Growth Company. ➢ Gateway Texaco lease. A handout was presented to council. Since the recommended default lease notice, Mr. Pruitt was now willing to construct a modified sidewalk this spring. His current proposal did not meet the city specifications. Pruitt would also pay to move the electrical boxes as required if needed, and would post loading zone prohibited to parking areas. If this was not acceptable, he would ask that the lease be amended and give up the 10 feet in question. Shealy felt the city should amend the lease and take back the 10 foot strip with all costs associated with this being paid by Mr. Pruitt. If Mr. Pruitt would not cooperate, a notice of default would be sent out. In response to V aldatta, Shealy stated high density plastic pipe was discussed and now used in a lot of places. A problem the city had was they would have to re -tool completely to put in taps. With the ability the city had, it was decided that ductile iron was better, would last long, and was compatible with the way the system was designed. Shealy stated the price for the North Forest Acres waterline was capped. Plastic had been considered for the Third Avenue waterline system because of adverse soil conditions by the lagoon and could be a design alternative. City Attorney Report. City Attorney Cheryl Brooking stated for the period December 21 through January 20, they worked with resolutions, ordinances, personnel issues, provided easements, leases, employment and contract issues, zoning issues and some lease matters within the harbor. They also continued work on the permit agreement for installing telephone systems in the harbor. Other Reports, Announcements and Presentations. Introduction of new Hospital Administrator, Kathy Kloster. Seward Middle School Travel Club was present and requested a money donation as provided in past years to the Close -Up Program. In return, they were willing to give back to the community by performing community work service. Fifteen students and five adults would make the trip to Washington D.C. Report on the Alaska Mayor Conference in Juneau by Mayor Brossow. Citizens' comments on any subject except those items scheduled for public hearing. Monica Luther, spoke as President of the Student International Friendship Association (SIFA) and indicated their Board had read the invitation letter from Kushiro Japan. They wanted to support the council in accepting the invitation and would be willing to participate in the selection of students for the World Child Summit being held there. City of Seward, Alaska City Council Minutes February 9, 2004 Volume 36, Page 326 Ron Buckley, spoke against bunkhouses on Second Avenue. He did not think it was fair that Major Marine was told to move and complied, but yet the Sealife Center got a reprieve on their housing issue for another year. Buckley thought the housing problem was growing and the Sealife Center should build a dorm. He wanted Second Avenue kept to RI zoning. Jim Pruitt, spoke on the sidewalk issue at Gateway. He stated the original intent was to lease an additional 10 feet to make a delivery area so trucks wouldn't load from the street. Since this request the property value had doubled. Pruitt agreed to put a sidewalk barrier between the lot and facility. The estimate was $30,000 to put the sidewalk and curbs in there. He stated his lease was double the cost as to what he originally anticipated with property values going up. He received one sidewalk bid from Swenson of $10,000. He wanted to know what Council's intent was. Diane Dubuc, felt SMIC was an area where boats go to die. She thought ifprivate enterprise wanted to buy it, sell it. Approval of agenda and consent agenda Motion (Branson /Shafer) Approval of Agenda and Consent Agenda The following item was added by unanimous consent to the agenda. Discussion of the request letter from Korea. Motion passed Unanimous The clerk read the following approved consent agenda items: Approval of the January 26, 2004 regular meeting minutes. Resolution 2004 -12, authorizing the City Manager to pay dues owed to the Alaska Power Association (formerly ARECA) for the year 2004 in the amount of $16,093.00. Non - objection to liquor license renewals for Three Bears #3909, Harbor Dinner Club #501, BPO Elks Lodge #1773 and Thorns Showcase Lounge. Public hearings - None Unfinished business - None New business City of Seward, Alaska February 9, 2004 City Council Minutes Volume 36, Page 327 Resolution 2004 -13, authorizing the City Manager to enter into a grant agreement with Alaska Department of Environmental Conservation and accept grant funds in the amount of $99,800 to the Water Source Study Grant. The City's match will be $42,772 appropriating funds from the Water Enterprise Fund. Motion (Dunham/Shafer) Approve Resolution 2004 -13 Shealy stated the city was offered a $99,800 grant which required a $42,772 match. This project would include an assessment of the drinking water supply, actions required to comply with EPA, and determine how to implement those actions. This would include an implementation plan, identified improvements, and an environmental review. Estimated costs would be provided. Shealy reiterated this was a complete review of the existing water system, proposed changes, and the cost to implement those changes. Motion passed Unanimous Resolution 2004 -14, authorizing payment in the amount of $54,350 to the Seward Chamber of Commerce for providing marketing services on behalf of the community, representing one -half of the amount budgeted for marketing in 2004, based on 50% of the bed tax collected in 2002. Motion (Shafer/Dunham) Approve Resolution 2004 -14 Shealy stated the City had implemented a 4% bed tax in January of 1996. In 2001, the council agreed to share 50% of the bed tax with the Chamber to perform marketing services. In 2002 the contribution was based on 50% of the previous year's bed tax collection. The Chamber had requested half of the budgeted amount to meet cash flow needs. Dunham argued that they should get the whole amount now. Shealy noted the Chamber was developing a marketing plan to present to council for accountability purposes. Amberg was concerned with giving this amount of money without accountability. She wanted to see their plan, and know exactly where the money was going. Valdatta did not know of anyone else who would field the industrial marketing questions other than the Chamber. Motion passed Unanimous City of Seward, Alaska City Council Minutes February 9, 2004 volume 36, Page 328 Resolution 2004 -15, approving a change to the Port and Harbor Tariff for 2004, restructuring the moorage rate for Seward Marine Industrial Center (SMIC) Facilities. Motion (Dunham/Shafer) Approve Resolution 2004 -15 Shealy stated SMIC had a different rate than the small boat harbor for dockage. PACAB recommended a re- structure of the docking rate to coincide with the small boat harbor. He recommended adoption. Shafer was aware of the deficit this caused in that account, but felt it would go along way in establishing the appearance of fairness for the boating community. Motion passed Unanimous Council recessed at 8:45 p.m. Council re- convened at 8:55 p.m. Other New Business Appoint Kevin Clark as the council representative to the Waterfront Committee. Motion (Branson /Amberg) Delete the appointment of Kevin Clark as the council representative to the Waterfront Committee from the agenda. Motion Passed Unanimous A work session was scheduled for Tuesday, March 2, 2004 at 7:OOp.m. with Mark Hamilton and Craig Dorman from the University of Alaska Fairbanks, to give a presentation on the Seward Marine Center. Margaret Branson was appointed by the Mayor to collect and tabulate the results of the evaluations of the city attorney, city clerk and city manager by March 8, 2004. Robert Valdatta, with Willard Dunham as alternate, was appointed by the Mayor as representative on the Municipal Advisory Group established under the Alaska Stranded Gas Development Act. Discussion regarding the sale of SMIC. Shafer had wanted this discussed. She wondered what the city needed to do to put city land up for sale. The land was being devalued. Branson suggested the city engineer bring a surveyors plat for another meeting. City of Seward, Alaska City Council Minutes February 9, 2004 Volume 36, Page 329 Dunham would entertain the possibility of a sale. A work session was scheduled for Tuesday February 17, 2004 at 7 pm to discuss the sale of SMIC. Give direction to Clerk on whether to accept Kushiro Invitation for 5 young people and one adult to attend the World Child Summit in Kushiro Japan. Many council members agreed that it appeared Kushiro would bare the round trip expenses and accepted the gracious offer. Council advised the Clerk's office to send a letter of acceptance from the Mayor. Discussion of re- establishment of ties with Korea. Dunham wanted to start this up again. He felt it was a great step forward and in our best interest to improve our port status. Shafer thought they should be invited over here, but with budget constraints, possibly the city could send someone there next year. Mayor send a letter inviting the Mayor of Yeosu City Korea to Seward for the Silver Salmon Derby. Informational items and reports (No action required) Donation request letter from Middle School Travel Club to partake in American History tour in Washington D.C. Motion (Shafer/Dunham) Motion Passed Donate $1000 of money budgeted for High School Close -Up Program to the Middle School Travel Club for their Washington DC trip. Unanimous Donation request letter from High School Travel Club for a trip to London. Council stated this was not in the budget, but would like to help. They felt they could donate a print and pins. City of Seward, Alaska February 9, 2004 City Council Minutes Volume 36, Page 330 Council comments Shafer had heard people were pea green with envy of Seward receiving money from Senator Stevens. Branson took a tour of the fiber optic cable laying ship with its British crew. She said the ship was made in Holland and had enough fiber optic cable to go to Oregon. Branson thought it was a beautiful and fantastic ship and was sorry she was the only council person there with no present to offer them. Divers were bringing the cable to shore off Monroe Street and it would be heading to Oregon moving 1 kilometer an hour. Valdatta thought the city needed to beef up the red salmon run and start a branding program here. He wanted the city to fix the water hole on North Harbor Drive. Dunham thanked Branson for attending and thought the ship should have left with something from the council. Brossow had a good time in Juneau. The lobbyist and others knew of Seward's wish list and would do their best. Brossow stated no one knew what would happen in the legislature this year, and members should make a presence in Juneau later. He thanked the Public Works crew for snow removal during the recent snowstorm. Citizens' comments Nina Daley, was perturbed that the SMIC work session was scheduled at the same time as a P &Z work session, and requested a full report. Monica Luther thanked the council for offering their support to Kushiro. She stated SIFA would also help with any exchange of students with Korea in the future. She felt International relations were important to the community. Council and administration response to citizens' comments Branson thanked Luther and SIFA for volunteering their services. Go into executive session to address matters that pertain to pending litigation with Ace Hardware. Motion (Branson /Shafer) Go into executive session to address matters that pertain to pending litigation with Ace Hardware. Motion Passed Unanimous City of Seward, Alaska City Council Minutes February 9, 2004 Volume 36, Page 331 Council went into Executive Session at 9:25 p.m. Council reconvened into their regular meeting 9:47 p.m. Adjournment The meeting was adjourned at 9:48 p.m. C. David Brossow Mayor Jean;Lewis City Clerk (City Seal) � g�7 O ^a , �v �' i ° wa sa U. 0 ° e 41 'a, ei 'SPie7L'� C. David Brossow Mayor City of Seward, Alaska City Council Minutes February 23 2004 Volume 36, Page332 Call to order The February 23, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice -Mayor Vanta Shafer. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Willard Dunham Linda Amberg Kevin Clark Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent— Mayor David Brossow Special orders, presentations and reports Proclamations and Awards A police certificate was presented to Joseph J. Germain from the Alaska Police Standards Council. Borough Assembly Report. Borough Assembly Representative Ron Long stated the February 3rd meeting authorized the acquisition of 12 acres of land for the Seward Middle School and appropriated $346,500. They supported legislation that would require the state attach a fiscal note to all legislation or administrative actions that would have an effect on local governments and school districts. Assembly meetings were put back on the air on dial 88.1. Long stated they tabled Mr. Superman's proposed resolution supporting electronic gaming machines to solve fiscal gap problems. Establishing federal priorities was completed. He announced that Lowell Point Road was still one of the top three priorities. He would be traveling to Washington D.C. on February 29 through March P. Long noted one individual spoke against the Seward Middle School. An Assembly member wanted to stop the project to see if that was true. No motion was made so therefore no action was taken, but a work session would be held for the School Board to respond to the allegation. City of Seward, Alaska City Council Minutes February 23, 2004 Volume 36 Page333 City Manager's Report. City Manager Phil Shealy summarized his report: ➢ The police department had recently hired Christopher Roberts as the new patrol officer. ➢ Fisheries Economic Grant program had funds left over. An application was submitted for North dock and bulkhead rehabilitation. Would also seek monies to replace the travel lift as a fall back position. ➢ There would be an open house Friday, March 5 at the Senior Citizen Center and Council was invited. ➢ The U.S. Forest Service was accepting public comment on their Godwin Glacier proposals. Proposals sought a temporary 1 -yr. permit or a 5 -yr. permit. He felt it could be good economic development for the area and asked for council support. ➢ There would be an open house Monday, March 1 at AVTEC auditorium from 7 -9pm seeking input on the Carter /Crescent Lake area plans. The Downtown Business Association wanted electricity rates reduced for winter camping, and $15 was a figure that may be more appropriate. Campground fees without electricity could have a different rate. School Board Report. Sandy Wassilie stated there was no Junior ROTC program within this district. With the Borough to pay half the salary for the officer, and budget cuts, it would not happen in the near future. Most meetings held were taken up with budget issues. The District was facing a 6.8 million shortfall and had just held a seven hour work session. 1.6 million was set aside from the budget this year. Consolidation and closing of schools would cost more money than save. Most schools were at 60% capacity. Transportation costs would eat up any savings, and two elementary schools in Nikiski would merge together. Wassilie stated elimination of food service subsidy, reducing quest, staff, counselors, etc. was all being discussed and looked at. The good news was that the legislature was looking at increasing the base allocation rate. Other Reports, Announcements and Presentations. Erin Hall- Meade, Community Development Coordinator for Life - Alaska. This was a non - profit tissue organization that maintained the donor registry and tissue bank that served Alaska. They had been in business since 1991. 83,000 Americans were on the organ transplant list, with 100 from Alaska. Alaska had the highest consent rate in the nation. Life Alaska would like to work with the school to design tiles as a project and have the city display them to raise awareness of this important topic. Presentation on the Multi- Agency Facility by Anne Castellina. They were waiting on design for the 40,000 sq ft building to begin early March, and hoped to get through 35% design City of Seward, Alaska City Council Minutes Febr 23 2004 Volume 36, Page334 this year. She reiterated that there would be public meetings throughout the process and wanted input, especially at the beginning stages. The hazardous compliance was done and the site survey would be completed when ice melted. The appraisal process had started and they hoped to be finished in May and begin to make offers. All acquisitions would be completed by September, and a vacation of Washington Street needed to be addressed. Another 2.3 million was available from DOT for this project. The Seward Waterfront committee would prioritize and may replace the pavilions, Hoben Park fountain, and extend the bike path. Planning and Zoning Applicant Sandie Roach' spoke and requested the opportunity to be re- appointed. She stated Seward was unique in its characteristics and she wanted to maintain the quality of life for the community. Historic Preservation Applicant Shanna Snowden stated she was a P generation Seward Alaskan, and felt it was important to keep historic activities alive and wanted to be involved. Citizens' comments on any subject except those items scheduled for public hearing. Jim Collman, read articles in the Phoenix Log and the other letters recently submitted. He wanted to know where the business plan was for the latest harbor proposal. Seward already had 400 boat owners on the wait list. He felt mixed use in the small boat harbor would create other hazards and thought there needed to be a hazard assessment. He cited a large amount of ammonia being stored at Seward Fisheries, fire spreading and protection, oils spills and economic impact on businesses that would have to be re- considered with another plan. Diane Dubuc, really wanted to speak to the small vessels under 27 ft. Dubuc stated this group represented 200 members, and was also the largest component to the slip wait list. This demonstrated the demand for small vessel slips, therefore, the city should not decrease the number of small vessel stalls. Economy being what it was, the national trend of people buying larger vessels would probably shift to vessels under 32 ft. Dubuc also thought the launch ramp that was at the harbor entrance would be the worst possible place to launch vessels. Ken Pendleton, had lived in Anchorage since 1975, owned a boat in the small boat harbor, and was concerned with the harbor expansion project. He enjoyed coming to Seward and had a sailboat moored here since 1981. Pendleton noted he had been on the waiting list for 13 years total between both his slips. The harbor expansion plan that was already approved, did address expansion of recreational boat slips and was definitely needed. He spoke about the financial contribution that his family alone had made to the Seward economy over the years. He stated it was a misconception that Anchorage boaters did not contribute to the Seward economy. Pendleton felt there had been a serious effort from the public process to make a reasonable evaluation on the current plan, and requested the original plan that was approved proceed forward. Toby Archuleta, Anchorage commodore of the Seward Yacht Club. He had been coming to Seward since 1984, and along with Ken, on the waiting list for 20 years. He stated there were 325 small boats on the waiting list, which would generate about $425,000 in guaranteed revenue. He was retired and spent 70 days a year in Seward. Gas alone totaled $8500 a year, plus moorage fees, along City of Seward, Alaska City Council Minutes February 23, 2004 Volume 36 Page335 with other services equaled up to $20,000 a year. Archuleta encouraged the harbor expansion move forward as was. Jerry George, Anchorage resident who spends 6 months a year in Seward. George felt there had been a wonderful public process to get where we were today. There were meetings in both Anchorage and Seward with over 300 people participating. He stated almost as many participated as voted in the last election in Seward. The harbor plan already approved was a compromise that was reached with a lot of special interests. George stated the harbor was not up for the highest bidder. It was a public facility and the public process served the public. It was a compromise that served everybody to the best of its ability. He encouraged council to move forward with the plan and felt there was a lot of support for this plan. He was concerned Seward was undermining the public process by adopting a plan contrary to what the public process developed. Tim McDonald, grew up in the Harbor area. He did not think it was a contest. In his opinion commercial dollars circulated more and created wages. He thought Seward could use another boat harbor and stated most harbors were not mixed use. McDonald liked the Hubbard plan because it was segregated. It put all commercial on one side and added sport slips. He felt there was a prejudice in the Harbor on commercial boaters, and that present management in the harbor needed to be replaced. DJ Whitman, thanked Anchorage for spending money here but stated it was Seward's harbor. Other designs were put forth last year and Plan N was not the preferred plan by the locals. He reported the Hubbard plan added 40 more slips and put them on the west side. Rhonda Hubbard, was saddened this sounded like commercial vs recreational vessels, however, Seward needed winter business. Their commercial business contributed a lot to the economy with property tax, moorage, employing a crew, fish tax, etc., and she felt Seward needed a good tax base. Karl Van Buskirk, stated the harbor was for all users. All users brought economic gain for the area. He thought Seward had the highest moorage rates in the State, and was opposed to a moorage rate increase. He felt the city had a responsibility to provide an economically viable facility and did not want to bankrupt ourselves with costs. Van Buskirk stated Seward had the best concrete floats on the market. Produce revenue and a nice facility. Ron Long, agreed with a little of what everyone had said so far. He stated that both commercial and recreational were valuable contributors, so just build something that suited both. Dennis Butts, made his living from both sides. He should get a slip in the next 4 years. He wanted the city to build something that all could use. Butts thought boat loading needed to be addressed. There should be more public access to move equipment from vehicles to boats. Jim Hubbard, put his plan on paper because he felt it did a better job of addressing all the problems. It addressed loading areas, small stalls, and transient moorage. It was important to have public access and more dockage needed like T dock. Hubbard expressed the economy was suffering City of Seward, Alaska City Council Minutes February 23 2004 Volume 36, Paxe336 Approval of agenda and consent agenda Motion (Dunham/Branson) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: The February 9, 2004 city council meeting minutes were approved. The following was added to the agenda: Discuss Godwin Glacier proposal. Schedule a work session to discuss alternate energy. Public hearings Resolutions requiring Public Hearing Resolution 2004 -16, authorizing the City of Seward to issue general obligation refunding bonds, 2004 in the principal amount of not to exceed $5,500 to refund certain outstanding general obligation bonds of the City, fixing certain details of such bonds and authorizing their and providing for related matters. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. City Manager Phil Shealy expected savings of $1504200,000. He had hoped to extend the time on the bonds, but was not able to accomplish that. Motion (Branson /Dunham) Approve Resolution 2004 -16 Dunham stated it was in the best interest to approve this resolution because it amounted to a considerable savings to the city. Motion passed Unanimous Resolution 2004 -17, terminating lease RE -84 -040 and authorizing the City Manager to enter into a new lease agreement with Charles S. Bald and Carol Lallatin for Lot 6, Block 1 Marina Subdivision. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Shealy requested a lease extension so the lessee could achieve better financing. The current lease would have to be terminated. The lessee was current on all taxes and Shealy City of Seward, Alaska City Council Minutes February 23, 2004 Volume 36 PaAe337 recommended a new replacement lease. Branson asked to see the plat of the lease. Harbormaster Jim Beckham had the plat on computer for review at his office but not with him. He stated the lease was for the corner lot and it had a road ROW and a utility easement along that ROW. Motion (Dunham/Amberg) Motion passed Approve Resolution 2004 -17 Unanimous Resolution 2004 -18, amending the garbage tariff. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald, spoke that Peninsula Sanitation ran a top notch organization. He thought it was the cleanest garbage operation he had ever seen and had a good working crew. Motion (BransonNaldatta) Approve Resolution 2004 -18 Shealy stated this 8% rate increase would provide the company the ability to operate more efficiently, and recommended approval. Dunham wanted them to acquire a property investment to handle their facilities, since it appeared they would be a long -term company. Motion passed Unanimous Unfinished business - None New business Resolution 2004 -19, approving Phase 1 of the Seward Small Boat Harbor Planning and Development Guide (The Guide) and Preliminary Project Budget. Shealy summarized the project to date. ➢ The Corps had done a feasibility study in 1998 and was approved in 1999. ➢ Several grants were obtained to fund the improvements. ➢ August 2002, council approved the public involvement and schematic design services for the East Harbor Expansion project, and November of that year added a master planning component to the contract. ➢ A long public involvement process evolved. City of Seward, Alaska City Council Minutes Februa 23 2004 Volume 36, P age338 ➢ In April of 2003, PACAB recommended plan N revision 2, which council adopted. ➢ The Harbor Development Guide was completed in June 2003 and the Guide adopted in August of 2003. ➢ In October, Council approved the design services with TNH incorporating the inner harbor improvement component of the federal East Harbor expansion project. ➢ 50% schematic design and layout had been completed and was presented and approved by PACAB recently. Shealy stated this also approved the preliminary budget and layout and use of concrete floats. ➢ Total funding for the federal match and inner harbor improvements were estimated at 7.5 million dollars. The harbormaster's plan of using revenue bonds and contributions from other funds would bring in 6.7 million leaving a deficit of .8 million for a fully funded project. City optimistic contingencies would go along way to offset that deficit. Shealy was actively seeking funds from the state and federal sources to close that gap. ➢ It was estimated 106 stalls would generate $175,000 additional annual revenue to be used for debt service on the revenue bond. ➢ Staff and PACAB recommended approval of Phase I. Motion (BransonNaldatta) Approve Resolution 2004 -19 Dunham had the same reservations as stated before that not enough consideration was given for small vessels. He thought a lot more work would be done on the float design. Harbormaster Jim Beckham stated the process was long and tedious and was over 20 years old. Finally ready to award the federal portion, and some of our portion to dredge the inner harbor. He summarized the following process: ➢ There were at least two dozen layout plans for the harbor originally ➢ Council requested and conducted a comprehensive public involvement process which expanded over a year. There were many public meetings, surveys, questionnaires, mailings, and an advertisement in Fisherman Journal soliciting feedback. ➢ Goal was to seek maximum density in the harbor to alleviate the 400 people on the harbor wait list, with the bulk of those on the 32 and 40 ft list. The main goal was always to address the wait list issues. ➢ Many plans which finally evolved into Plan M, N and O. City of Seward, Alaska City Council Minutes February 23, 2004 Volume 36 Page339 ➢ After lengthy debate and public input and compromise, Plan N was picked by both council and PACAB. There had been 2 revisions of that plan to date, to address further concerns of larger, commercial boat owners. That plan, was approved twice by council and twice by PACAB. ➢ The original plan would have added 297 slips. The plan now adds 106 slips. Most of those are in the larger range to accommodate bigger boats, and they all want power. A big chunk of real estate was given up to accommodate that user group, and maneuvering concerns were addressed. ➢ This was the compromise plan that was agreed to and did not preclude or adversely affect any user group from the harbor. Although not recommended, barges could even tie up ifneeded. In response to Dunham, Beckham stated small slips were not eliminated. He stated this part of the project never had small slips on it. This resolution was only concerned with floats on the western portion. Kevin Clark was uncomfortable with making a decision since he had only been on the council a short time. Beckham didn't think council had wanted to spend almost $200,000 on a document, to throw it away every time a phase of the project was addressed. These preliminary schematic designs were intended to be a template for the future. - Shafer remembered every phase would be discussed and felt this phase I was pretty much agreed on already and was satisfactory to most everyone. She reminded they were only voting on Phase I tonight. In response to Valdatta, Beckham stated the preliminary project budget projected 1.75 million in revenue bonds, 4.2 million in additional funds and the hope money would be restored from the State of Alaska that was previously promised. No harbor projects had been funded this year at the state level. The city would have to bond, since there was no money to pay the project off. In response to Shafer, Beckham informed the electric contribution fund contributed money for the electrical utility portion. They would share in a portion of the wiring and pedestals on the upland portion. The general fund contribution would go toward the construction of the project. In response to Dunham, Beckham explained if this resolution were approved, it would construct 106 slips in that area, move X float, and move the fuel float to an area to expand the length of it. Nothing would be done on the west side in this Phase. In response to Clark, Beckham affirmed that council adopted this entire guide of which Phase I was included. A contract was awarded to develop Phase I. Council was again being asked to adopt Phase I since the design had been approved. City of Seward, Alaska City Council Minutes Febru 23 2004 Volume 36, P age340 Beckham reiterated council was voting on the east side schematic part of the plan only. Motion passed Council recessed at 9:20 pm Council resumed at 9:30 pm Yes: Dunham, Valdatta, Branson, Amberg Shafer No: Clark Resolution 2004 -20, opposing Senate Bill 276 imposing a 2% annual assessment on joint insurance arrangements and self - insured employers. Motion (Dunham/Branson) Approve Resolution 2004 -20 Shealy stated Seward was a member of JIA, and local governments would pay with no benefit. Administration was opposing the 2% assessment being requested. Assistant City Manager Rick Gifford, state the state had a guaranteed fund. A few big companies had gone insolvent and they were now looking for money to put toward those claims. Motion passed Unanimous Resolution 2004 -21, authorizing the City Manager to enter into a contract with CRW Engineering Group, LLC for an amount not to exceed $168 and appropriate and transfer funds from the general fund to the Water Enterprise Fund. Motion (Dunham/Branson) Approve Resolution 2004 -21 Shealy stated council passed a resolution last October making the 3` Avenue water main upgrade their number one water /sewer project. A grant was applied for through ADEC and approved, but the entire project was vetoed by the Governor last spring. Shealy felt this waterline project must be designed soon to facilitate and coordinate with the DOT 0 -8 mile project. DOT would go out to bid this fall and staff hoped to include this water main project in that bid. Staff believed the most cost effective way to accomplish this coordinated effort was through a sole source design with CRW. CRW submitted a proposal and was selected for a number of reasons. CRW was currently coordinating and designing the pedestrian underpass on 3rd Avenue, performed the city- wide water modeling analysis of 2000, and completed extension of Gateway to Forest Acres extension. Shealy requested council go along with staff and not go to competitive bid, and appropriate money to CRW for design of this project. Amendment (Valdatta/Branson) Add the following sentence to the beginning of Section 1, per the city attorney request which reads; "For the reasons stated in the recitals and incorporated herein by this City of Seward, Alaska City Council Minutes February 23, 2004 Volume 36 Page341 Amendment Passed Main Motion passed reference, the contract is in the public interest." Unanimous Unanimous Resolution 2004 -23, authorizing the Seward Fire Department to purchase 40 self contained breathing apparatus with accessories subject to obtaining financing. Motion (DunhamNaldatta) Approve Resolution 2004 -23 Shealy reiterated the Fire Department needed to replace their self contained breathing apparatus (SCBA) inventory because of age, high cost of maintenance, and safety concerns. Option explored to lease and secure financing from various vendors. This would allow replacement of all SCBA's at one time. Staff received four proposals and was recommending the one least costly which was L.N. Curtis & Sons for $126,173.00. Valdattta questioned that other area fire departments had went with the local company Eagle Enterprise and thought the city was piggybacking with them. Fire Chief David Squires stated the company was based in Oakland CA. He decided on them because of the $24,096 difference in cost. Seward would not be able to do buddy breathing with other departments because they would be different units. It was the goal to buy the same equipment as other departments. Amberg wanted to fund 20 not 40, and requested a real effort to obtain grants first. In response to Amberg, Squires did not think it was fiscally responsible to buy half and still maintain the old packs. The maintenance cost on the old packs was too high. Branson wanted to know why the RFP didn't include financing at the same time. Shealy would put out an RFP for financing separate in hopes the city could obtain cheaper financing, and stated it was step one of a two step process. Financing would be sought with leasing companies or the companies themselves. Squires stated L.N. Curtis & Sons would train 2 personnel to maintain the air packs. He agreed with Valdatta that if those two quit there would not be trained personnel to maintain them. Dunham pointed out the resolution was only asking to select a vendor and authorize administration to seek financing. Squires had not given up on seeking grants through Homeland Security, however the Borough's number one priorities were now communication equipment. He proposed now to lease City of Seward, Alaska City Council Minutes February 2 3 2004 Volume 36, Page342 those packs for 5 -7 years to not increase the budget. Different leasing agencies may give us a better deal. Clark had spoke with other area departments and wanted all four departments to have the same packs. He stated other departments bought packs based on what they thought the city of Seward would buy. Scot air packs are the most comfortable. Valdatta stated for $24,000 it would keep the money within the state and all departments could benefit. Shafer did not want the volunteer fireman using substandard equipment. Amendment (Branson/Valdatta) Eliminate 8 th whereas, and substitute the name "Eagle Enterprises" for L.N. Curtis & Sons and substitute the dollar amount 1 1 $150 9 265.00" in place of $126,173.00 in Section 1. Amendment Passed Main Motion Passed Other New Business Yes: Clark, Valdatta, Branson, Dunham, Shafer No: Amberg Unanimous Give direction to Administration whether to amend the Employee Health Plan contribution rate. Amberg wanted to increase the benefit package to 10% and put it into the general fund. Dunham disagreed. He stated it was not fair to charge the employees if it was not needed. Motion (Dunham/Branson) Recommend employee contribution to the Health Plan remain at 7.5 %. Motion Failed Yes: Dunham No: Branson, Amberg, Valdatta, Clark and Shafer Based on council direction, the Administration would come back with a resolution to raise the City of Seward, Alaska City Council Minutes February 13, 2004 Volume 36 Page343 employee contribution to 10 %. Appoint three applicants to serve on the Planning and Zoning Commission for a three -year term to expire February 2007. Applications received from: Marianna Keil, Tom Smith, Steve Schafer and Sandy Roach'. Marianna Keil, Tom Smith, and Sandie Roach' were re- appointed to serve 3 -yr. terms. Appoint one applicant to serve on the Historic Preservation Commission to fill a vacancy whose term expires May 2005. Applications received from: Connie Spencer and Shanna Snowden. Shanna Snowden was appointed to fill the vacancy whose term expired in May 2005. Mayor appoint a council representative to send to the Commercial Fish Expo/Trade Show in Kodiak March 18 through 20. Mayor Brossow appointed Margaret Branson to attend the Comm. Fish Expo in Kodiak. Discuss Godwin Glacier Proposal Council supported the 5 -year proposal and requested a letter be sent. Schedule a work session to discuss alternate energy sources. A Work session was scheduled for Monday, March 8 at 6:30 pm. Informational items and reports A. Clerk Travel Report Council comments Dunham stated legislation on PILT was being discussed again and should be looked into. Valdatta reported he had participated in teleconferences of the Alaska stranded gas committee and a consultant would be selected to appear in all communities and conduct a feasibility study that addressed stresses and benefits of a natural gas pipeline. He informed the public there were several bills going through the legislature which emphasized the Cook Inlet area getting a fair share of natural gas. Branson had driven the Exit Glacier highway and found the road badly deteriorated. There were red cones everywhere. She felt this state highway was a disgrace and needed to be repaired. City of Seward, Alaska City Council Minutes February 2 3 2004 Vol ume 36, Pa� Shafer stated the harbor issues were the hardest to deal with because of so many different user groups. All must be taken into consideration. Public input was always high. Citizens' comments Jim Collman stated the cannery was built where it was because of fishing. The Seward Boat Owners Association had always recruited membership from all parties in the harbor, commercial and recreational. He stated consensus from boat owners was they could always communicate any issues they had. He felt there was a breakdown of communication tonight. For the most part the city had done a fair job of communicating with boat owners. Many small boat owners were connected with tourism. Collman thought the city would have to address safety in the harbor in the future. He stressed the need for air packs and safeguards against boat fires. He suggested the city pick the best business plan and stick to it. Sandie Roach thanked council for support on the P &Z commission and informed council that Godwin Glacier had a severe code violation at their site. Council and administration response to citizens' comments Valdatta hoped the loyal fishing fleet continued to return to Seward. Adjournment The meeting was adjourned at 10:38 pm. Jeati Lewis City Clerk st e14ennrg s' S , i� (City Se �"�. ' ?0 "''• 'oo o Q sh - a OF 4 4l Vanta Shafer Vice-Mayor City of Seward, Alaska City Council Minutes Ma 8 2004 Volume 36 Page 345 Call to order The March 8, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David Brossow. Opening ceremony Sgt. Valadez led the pledge of allegiance to the flag. Roll call There were present: David Brossow presiding, and Margaret Branson Willard Dunham Vanta Shafer Kevin Clark Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent— Linda Amberg Special orders, presentations and reports Proclamations and Awards Proclamation Read for American Red Cross Month. Certificate of Recognition presented to Byron Loomis, SCCC Employee of the Year 2004. Borough Assembly Report. Borough Assembly Representative Ron Long was present and stated the Assembly had not met, but would meet on March 16. City Manager's Report. City Manager Phil Shealy stated Providence had invited the _ council to tour the CT scan unit on Tuesday, March 1 at 4 pm in the hospital lobby. He requested work sessions be scheduled for a tour of Wesley and the Shipyard. Jim Pruitt's management contract expired at the end of this year. Also Frank Avezac, Chairman of the AIG Board would be in Seward and give a presentation at a council work session on March 15. City of Seward, Alaska City Council Minutes March 8, 2004 Volume 36 Page 346 In response to Shafer and Valdatta, Shealy stated the city was in the comment period on the Japanese Creek project. The city had tried to contact Gold Belt without success about the sawmill building. The tideland leases were maintained by the city. City Attorney's Report. City Attorney Cheryl Brooking gave a quick summary of what happened with the tidelands across the bay in 1998. After Chugach Alaska went bankrupt, it was put into a joint venture, and they were not able to make a go of it. Afognak Logging which was a parent company to Kodiak Lumber Limited, reached an agreement with the joint venture that was previously leasing the site, to purchase the land from the city. The city agreed to terminate the existing lease with the joint venture. The State owned the tidelands. The joint venture was leasing from the state. The city then applied to the State to acquire ownership of the tidelands, which came in two different pieces. The first piece the city acquired sooner, so when the uplands were sold to Kodiak Lumber, they immediately formed an LLC with Goldbelt. And the smaller parcel was leased for 55 years at the same time, and fully paid for in advance. The area was never developed as anticipated, but that was not a requirement of the lease. The city no longer had an interest in the uplands. She would have to look into insurance requirements for the tidelands. She stated her report covered the period Jan 21 — Feb 20. They assisted with resolutions, ordinances, public records, potential sale of land, refunding bonds of the hospital, contract and employment issues. There were some telephone and cable issues related to the harbor. Ongoing litigation was in the summary judgment stage. An opposition and a reply had been filed today. Other Reports, Announcements and Presentations. - None Citizens' comments on any subject except those items scheduled for public hearing. Linne Bardarson, wanted Plan N reconsidered. He liked the citizen harbor plan. Plan N was unacceptable because it did not meet the needs of present or future harbor customers. He was fearful for the commercial fish business. Tim McDonald, spoke against Plan N, because there were no loading facilities for commercial businesses. The T dock was in poor shape, there would be too much walking, and the plan was not good for commercial users. Flip Foldager, spoke against the insurance hike for employees. He said the last salary study had shown Seward as one of the lowest in the state. There had only been a small COLA, benefits had decreased, and wages were losing against inflation. Foldager remembered being told if insurance went down, the costs would go down. He requested council leave his money alone and was against putting his money into the general fund. He felt city employees walk around with a bulls -eye on their back as it was, and stated it was not fair to tax only city employees to bail out the general fund. Norm Regis, spoke against the employee insurance increase. He suggested leaving the rates alone unless insurance costs went up. On the harbor expansion, he urged council to look at the City of Seward, Alaska City Council Minutes March 8 2004 Volume 36 P age 347 money that was available, how it would benefit both user groups, and decide what was best for the city. He reminded there were 400 people on the waiting list. Kyle Campbell, l l years old, wanted an improved BMX track. He wanted to connect it, and make it larger with more jumps. Paul Carter, emphasized the need for new slips now. He shamed the local paper for not addressing the compromise that went on through the PACAB and other meetings. He thought a few outspoken people were crying wolf and the east harbor expansion project needed to move forward. He urged council to move forward with Plan N. Rhonda Hubbard, had lived here all her life. She thought the plan should be about economics and the citizens of the community. She apologized if it appeared to drive a wedge between user groups, and welcomed all diverse users. Hubbard pointed out Plan N discriminated against all users and especially commercial users. Madison Valadez, used the library, and thought it needed more funding to get a bigger selection of books for kids. Dale Hoogland, wanted both user groups in the harbor accommodated. He requested a loading facility to work off of. Hoogland supported the citizen plan, and thought the plan still needed some work to compromise and support both user groups. He requested reconsideration. Micah V anBuskirk, wanted a harbor for all users. She explored both sides and saw validity to the citizen's plan. She heard public comments to add small slips first and then construct the east side. She requested reconsideration be given to the expansion project. Jeff Grin, an out of state boat owner, spent 2.5 months here each year. He thought the new plan would make it hard to navigate in the harbor. He wanted a dock to unload from, safety issues addressed like a dock an ambulance could drive to, and wondered about a loss of federal funding if commercial boats were moved out. David Brindle, Manager at Res. Bay Seafoods, requested reconsideration and felt more and more commercial boats were being forced out. Brindle stated slips were needed and the citizen's plan made more sense. The Halibut commission was exploring a year round fishery. Rick Blythe, President of the Chamber of Commerce, spoke of recent Chamber accomplishments. The Stryker command would be in Seward April 6 -9, exploring the possibility of using Seward as a deployment site. They dust learned the state wrestling meets would be held in Seward for 3 years in December. Members attended the Pac Com convention, and Winterfest went over well. Hotels and restaurants were full, with vendors promising to return. Dennis Butts, owner of Quality Marine, saw the need for commercial fleet services. Other needs for the boat harbor were an easier way for boats to get water, better public access, groceries City of Seward, Alaska City Council Minutes March 8, 2004 Volume 36 Page 348 being carried a long way, and more dockage space for access. He thought another upgrade needed would be restrooms at SMIC area. Dave Crane, was concerned and wished the harbor expansion issue would receive another look. He thought more time should be added for public input. The harbor issue was a big part of the community and attendance showed the community cared. Crane stated it wouldn't hurt to listen to the community and requested reconsideration. Taryn Anderson, wanted more selection and funding for the public library. Diane Dubuc, read from a prior resolution. She did not feel the public process was as good as perceived and saw rationale with the citizen's plan. Dubuc thought the commercial fleet was underrepresented today, the plan should offer maximum density for all users, and the transient tie up should be by the coal chute. Jim Hubbard, felt the first plan on the board was an eye opener. He listened to the comments and drew up another plan. He had some distrust with the public process and thought there was very little of it. The plan should work for all users. Nicole Hewitt, visited the library frequently. She felt reading was important for all ages and wanted the city to provide more funding to expand the adult section. Gregory VonBorstel, wanted potholes filled on the main road, because flat tires occur. Nathan Orr, urged council to reconsider Plan N of the harbor expansion project. He knew the process had been ongoing for years, but stressed the community would live with the decision for a long time and wanted to get it right. He stated it was hard to design something that pleased everyone, but did not think the current plan accomplished the mission as well as it should. Orr thought the current plan could be tweaked a bit and made to work, and requested continued public input at every phase. Robert Linville, stated the public had never been given a citizen's plan to support. He felt it was extremely important for the future and to keep the fishing fleet here. Seward was a perfect location, nice town, and urged council to reconsider and give the people a good harbor. Rules were suspended to allow more people to speak Time extended for 16 minutes. Unanimous consent. Rolf Bardarson, liked the citizens plan. It addressed a lot of issues and had room for growth, and wished to move toward that plan. Karl VanBuskirk, thought the city could procure docks and materials and build what was best for the community. Since we would have to live with it for years to come, he requested reconsideration. City of Seward, Alaska City Council Minutes Ma rch 8 2004 Volume 36 Pa le 349 Pat Marrs, requested reconsideration on the harbor. Jim Pruitt, felt there was a failure of the process and asked council for reconsideration and then adoption of the citizen plan. DJ Whitman, wanted more process and didn't want to rush this project. He stated the city could go out and buy the piling. He felt the city was a couple of years away from having the harbor dredged. Logan Adelmann, wanted to extend and make better jumps for the BMX track. He used the track three times a week in the summer, and did not want a bowling alley constructed on it. Unknown Odom, requested to go back and look at the environmental impact because sealife was important. User groups felt slighted, so council should sit down and take a good hard look at the economy. He thought the plan in the packet was different than the last one he had heard of. Pete Sall, crewmember on the Chandalar, thought there were safety concerns and limited space with Plan N. He had concerns with the boat ramps and felt it made a congested area. Tim Wilkie, just wanted to make it a great harbor. Approval of agenda and consent agenda Motion (Branson /Shafer) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Non - objection to liquor license renewal for Breeze Inn #177. Public hearings — None Unfinished business Item for Reconsideration Resolution 2004 -19, approving Phase 1 of the Seward Small Boat Harbor Planning and Development Guide (The Guide) and Preliminary Project Budget. Motion (Dunham/Branson) Reconsider Resolution 2004 -19 Dunham felt more time was needed to expand on this plan. He requested council hold more public hearings and asked for reconsideration. City of Seward, Alaska City Council Minutes March 8, 2004 Volume 36 Pa e 350 Valdatta agreed with Dunham. Reconsideration Passed Motion (Dunham/Branson) Unanimous Postpone until April 12, 2004 Motion to Postpone Passed Council took a recess at 8:45 pm Council meeting reconvened at 9:00 pm New business Unanimous Resolution 2004 -24, increasing the city employee's health plan contribution rate for all employees eligible under the APUIT health plan from 7.5% to 10% and appropriate the savings to the city of $25,000 to the insurance reserve fund to help offset future insurance cost increases. Motion (Branson /Shafer) Approve Resolution 2004 -24 Shealy stated in 2002, a resolution established the employee contribution rate for insurance of 7.5 %. As rates go up or down, employee contributions go up and down. The 2004 rate had been decreased per person, resulting in a savings of $97,000 to the City. The City also paid 100% of the IBEW health plan. Non -union employees pay around $1,100 a year for their plan, union employees pay nothing. Shealy stated if council increased this rate, he recommended the excess be put into an insurance health reserve account. His recommendation was to not approve this resolution and let it stand at 7.5 %. Shafer was concerned with how Willis was close to failure a year ago. Willis assured they were more stable now with the change in management. Employees were told their insurance rate would not be increased unless needed. After consideration, Shafer thought it was unfair and would not vote for the increase now. Branson wanted to clear up right now, that at no time was the money ever to go into the general fund. It would go into an insurance fund, and she was not sure where that idea came from. Dunham was opposed to raising rates for now. In response to Branson, Shealy stated employee insurance rates were addressed annually during the budget, and if rates went up, employees were willing to step up then. Clark believed that 10% did not appear unreasonable, but felt what was told to employees in past years should be counted on. Motion Failed Unanimous City of Seward, Alaska City Council Minutes Marc 8 2004 Volume 36 Page 351 Resolution 2004 -25, decreasing winter municipal camping fees. Motion (Dunham/Shafer) Approve Resolution 2004 -25 Shealy stated this was an experimental venture. The decrease would not affect the general fund. He had been approached by the Downtown Business Association to reduce the fees. The question would be how far the council wished to subsidize for this shoulder season, or pay for itself? Dunham thought April would be a good month and needed to have activity there. He expressed keeping it reasonable and advertising to draw more people. Valdatta was afraid they would hook up and run their heaters. Shafer wanted to see a camper down there. Brossow would support this resolution as was, in order to build up a history to find out the right price, and what was the cost associated with it. Motion passed Yes: Valdatta, Clark, Shafer, Dunham, Brossow No: Branson Other New Business Discussion about the Life Alaska tile program. Branson thought it would be an interesting program. The High school would do the tiles and the prison could possibly be approached to make the stand for it. She was sure the city could find a place for it. Shafer, Valdatta and Dunham supported it. The Clerk would draft a resolution in support of the Life Alaska project. Discussion on the Fire Act Grant application Shealy stated this was a continuation on past discussions to obtain the Self- Contained Breathing Apparatus (SCBA's) and related accessories. The Fire Chief went to the grant training program and applications were being accepted now. It had been suggested that SCBA's could be funded through that program. He noted staff had applied 3 times in the past and were turned down but, instead of paying $150,000, just purchase the 40 SCBA's through a lease /purchase arrangement, and use the grant for spare cylinders, voice amplifiers, and air compressor fill station and test bench. By the city purchasing and financing the SCBA's themselves, it may give the city enough points in the evaluation process that the federal government would pay through Homeland Security. City of Seward, Alaska City Council Minutes March 8, 2004 Volume 36 Page 352 Shealy recommended exploration of the lease /purchase option, and price a lesser amount and apply for a grant for the accessories. This would result in less outlay for the city. Shealy stated the Fire Chief had designated other possible uses for the grant money such as; a ventilation system for the fire station, or simulator equipment for the future fire training center. April was the deadline for the grant. In response to Shafer, Shealy stated the federal government had critiqued the city's previous grants, and with no cost participation by the city, the application ranked lower. He thought with this combined approach, it would strengthen the process, increase the likelihood ofbeing funded, reduce the annual cost to the city, plus allow the city to move forward and purchase and replace the SCBA's. If obtaining the grant was not successful, he would again address during the budget process. Council wanted to proceed with the grant application. SMIC Uplands Boat Policy Discussion Valdatta read the port and harbor SMIC upland boat policy, and found boat owners could not do work that they used to do. He asked how this new policy came about, and wanted to rescind it and put it back the way it was, so people could work on their boats in the upland areas. Harbormaster Jim Beckham stated this new policy went into effect three years ago after about two years of going before the Port and Commerce Advisory Board ( PACAB). City Code disallowed major construction of boats in the upland storage yard. Major construction was a definition wrestled with. PACAB decided at the time, what activities would be allowed and not be allowed. In response to Clark, Beckham reported that PACAB revisited that policy. They instructed a change with some of the wording, and felt the rates were fine. The wording change was to assure one rate and not being double charged. SMIC was always envisioned as winter storage. No maintenance was allowed in the early years. Beckham stated it evolved when people did not have to move their boats in the spring and could stay year round and do some work. That evolution brought a concern against city code which did not allow major construction. PACAB rehashed this at their last meeting. Dunham stated they did not want derelict boats in the yard. The city could look at the utilization and possibly change the code. He would like to hear from the industry itself. Branson reiterated they needed a restroom at SMIC. Clark stated the economic development project would go to PACAB also. Shealy would put this upland policy before PACAB to revisit and survey the industry. Schedule a WS on the future of SMIC at 6:30 pm on Monday March 22, 2004. City of Seward, Alaska City Council Minutes March 8 2004 Volume 36 Page 353 Amberg, Clark and Valdatta were appointed to tour the CT scan and possibly the Nursing Home on Tuesday, March 16 at 4 pm. Informational items and reports. - None Council comments Shafer was happy to see Mrs. McKnight's class present tonight, and it was also nice to see the council chambers so full. Valdatta stated last Thursday's Fish and Game Advisory meeting went well. The new EDD Director wanted the communities to come up with a good project. He felt a branding salmon project should be promoted. Valdatta reminded the 2006 Winter Games were approaching and suggested an ice rink as a reasonable community project. Dunham wanted to revisit a comment made tonight on salmon enhancement. With neaxt year being the 50` year of the salmon derby, he asked the city manager to revisit an enhancement program. The city could seek cooperation and stimulate interest from charter boat operators since they continue to accuse council of sending it away. He mentioned vista workers and thought that would be a good community opportunity, but thought housing could be an issue. Dunham was opposed to HB 453. Clark expressed appreciation for all communications received this past week. It was nice to get the input. He felt it showed concern from the general public, and requested continued letter writing. Brossow congratulated Byron Loomis for SCCC employee of year, and appreciated the 6` grade class coming to speak before council. He thanked the staff and the public for the work done on the east harbor expansion project so far. Citizens' comments Margaret Anderson thanked the council for reconsidering the harbor expansion issue, and recognized all who worked so hard on this project. Attendance showed people did care and wanted a harbor for all users. She thought it was nice to have children testifying here also, and hoped all would pull together for this great community. Council and administration response to citizens' comments Shafer wanted a report on the BMX path at the next meeting. Brossow thought the Library staff could go to the school and ask questions. City of Seward, Alaska City Council Minutes March 8, 2004 Volume 36 Page 354 Shafer spoke on how communities do business and appreciated the knowledge of the youth in being aware the library was part of the city. Valdatta liked to get letters from the children. He wondered what Al Schafer would need to build a harbor area. Council went into executive session for the City Manager, City Attorney, and City Clerk evaluations. Motion (Branson /Dunham) Go into executive session for City Manager, City Attorney, and City Clerk evaluations. Motion Passed Unanimous Council convened into executive session for the City Manager evaluation at 10:00 pm. Council reconvened into the regular meeting at 10:28 pm. Council convened into executive session for the City Attorney evaluation at 10:29 pm. Council reconvened into the regular meeting at 10:40 pm. Council convened into executive session for the City Clerk evaluation at 10:40 pm. Council reconvened into the regular meeting at 10:55 pm. Adjournment The meeting was adjourned at 10:57 pm. Jean Lewis City °Clerk ° 4/11111111 alt Of SZF; (City Sej � s n • • o°a • wG � ,Q• �� ® d �� 0 1 8811 1210% ° Vanta Shafer Mayor City of Seward, Alaska City Council Minutes March 22 2004 Volume 36, Page355 Call to order The March 22, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor David Brossow. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: Dave Brossow presiding, and Margaret Branson Vanta Shafer Kevin Clark Willard Dunham Linda Amberg Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — None Special orders, presentations and reports Proclamations and Awards 40`" Anniversary of the Great Alaska Earthquake. Borough Assembly Report. Borough Assembly Representative Ron Long stated the Assembly would be in Seward the first week in May to introduce the budget. He felt they had satisfied concerns regarding the Seward Middle School. The Borough awarded a contract for Middle School site prep to North Star Construction for $485,000, along with other contracts. There would be one more hearing on May 6 on aircraft flat tax. After a meeting with pilots, the flat tax was amended from an across the board tax, to weight categories of aircraft. Long stated the Assembly adopted part 5 only of the Public Safety Communications Plan which were the recommendations for a communication system in a "best" world. In response to Valdatta and Dunham, Long clarified that all aircraft would be taxed by gross weight not value, and personal property tax that the City charged would be a separate tax. City of Seward, Alaska City Council Minutes March 22, 2004 Volume 36 Page356 City Manager's Report by City Manager Phil Shealy. ➢ Mr. Shealy congratulated Mitch Seavey and his family for winning the Iditarod. He invited the public to a Chamber hosted reception at the Sealife Center on Friday. ➢ Last year the dogsled that was in Hoben Park was moved and placed at Iditarod Park, formerly Centennial Park, displaying the Iditarod tripod and monument. Founders Monument was rebuilt as tribute to all mushers. Any ideas or tributes should be addressed to the Seward Trailblazers. ➢ The Seward Police Department would be holding a citizen's police academy to educate adults on what it was like to be a police officer. This program was designed to create a positive atmosphere between the community and the force. Interested citizens are to contact the Chief of Police. ➢ A machine would be in Seward tomorrow to demonstrate asphalt street repairs. ➢ The Telalaska Spring Co -ed Volleyball tournament was a success with six teams participating. ➢ Regular campgrounds opened April 15, and beach campers were already showing UP. ➢ The North Seward Water System Improvements Program (Forest Acres Waterline), bid opening was scheduled for April 22. Notice of intent to award May 12, with anticipated completion by August 24 ➢ The North Forest Acres levee was in the final stages of review and agencies would send comments soon. Chamber of Commerce Report. President Rick Blythe encouraged the city council and public to support the upcoming police academy program. They had attended trade shows in Anchorage, Fairbanks and Soldotna and handed out surveys to customers on "why they came to Seward." This information would be gathered and studied. Blythe reported the trolley was purchased by Alaska Pure Nature Tours, and would be a profit- making venture. There were plans to run two trolleys on cruise ship days. The Chamber was internally still recruiting and interviewing for a new chamber director, and encouraged participation. School Board Report. Sandra Wassilie reported the Board would be passing a balanced budget on April 5 Using a $94 increase in the base allocation, only 3.5 million would be cut instead of 6.8 million. If the money came into the state as Juneau forecasted, the district could continue a status quo budget for this year. There would be cuts next year. Wassilie thanked council for support in funding co- curricular activities for the schools. Possible cuts being considered were: City of Seward, Alaska City Council Minutes Mar 12 2004 Volume 36, Pa eg 359 Jerry Waliezer, thought this was an opportunity to nurture local businesses. He requested council move forward and sell the property, and create a template for others to move in that direction. This allowed businesses to be property owners. Motion (Dunham/Shafer) Approve Resolution 2004 -27 Dunham wanted to know, after 25 years of indecision, when council would sit down and decide what was the best interest of the city for land at the SMIC area, or would council continue to cherry pick without a plan. He felt others would follow suit. He was aware of the $300,000 lost each year and thought the area needed direction. Shealy stated there was a land fund to put these revenues into and suggested council may choose to use the money to defray costs of SMIC restrooms. In response to questions by Shafer on eventual sale of leased land, Shealy pointed out that upland lease revenues by the small boat harbor were split annually between the harbor and general fund, which generated $112,000 to each fund. With other smaller leases, the City received just under $290,000 a year. Shealy felt lease values would increase after being re- appraised next year. Although it sounded appealing to sell, he felt it would create an annual problem for those funds. Motion passed Unanimous Resolution 2004 -28, authorizing the city manager to execute a lease amendment with James T. Pruitt and Harbor Gateway, Inc. for a deleted portion of Lot 1, Block 10, Seward Small Boat Harbor Subdivision, Seward, Alaska. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Shealy stated the original lease was increased in 2000 for the lessee to construct a sidewalk. It had now been agreed to reduce the lease back, restore the city parking area and not construct the sidewalk. Lessee would pay all administrative and legal costs associated with this, and the administration recommended this amendment. Motion (Branson /Shafer) Approve Resolution 2004 -28 Shealy clarified that the lease went back to what it originally was. Motion passed Unanimous Resolution 2004 -29, terminating the lease RE -71 -064 and authorizing the city manager to enter into a new lease agreement with Dot Bardarson and Linne Bardarson for Lot 5B, Block 1, Seward Small Boat Harbor subdivision. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. City of Seward, Alaska City Council Minutes March 22, 2004 volume 36 Page360 Dot Bardarson, appreciated the extension of the lease to help sell their business, and was also excited to hear of some leases possibly being for sale. She felt change was good and this would broaden the tax base and keep the harbor rejuvenated. Motion (Branson /Clark) Approve Resolution 2004 -29 Shealy requested an extension to the terms of the lease that ran until 2018, to expire in 2034. He reiterated that appraisals would be re -done next year, and that Bardarson was current on all taxes and assessments. Staff recommended approval. In response to a question by council, Shealy stated in the event of a sale, leases would come back to council and were not transferable. Motion passed Unanimous Resolution 2004 -30, authorizing the city manager to enter into a new lease agreement with Deborah Altermatt for a portion of Lot 1, Block 6, Seward Small Boat Harbor Subdivision, containing 8,520 square feet, more or less. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Shealy stated Altermatt asked for this small parcel to enhance and expand her business. This sliver of land was a small piece of real estate on the uplands by the ARR. This would provide continuity and address maintenance issues. The lease rate would be continued until adjusted in 2005 after re- appraisal. It would generate $9,500 of rent and recommended approval. Deborah Altermatt, thought this lease mitigated problems businesses had in the area. Those businesses use that parcel for parking which were ignored in the winter. She had heard some interest by other entities to expand their lots and stated she would not build on that strip in front of their businesses. The land would remain private parking and be used by other businesses. Her intent was to build another building in front of the existing building. She would continue to explore options and would enhance the area. Motion (Dunham/Shafer) Approve Resolution 2004 -30 Shealy informed that a lease price had been established, and Paul Carter would be included in the lease, so administration would make that change. He also noted this would resolve the issue of snow removal Harbormaster Jim Beckham stated the other businesses would still have access to their lots. Motion passed Yes: Shafer, Clark, Valdatta, Dunham, Branson, Brossow No: Amberg City of Seward, Alaska City Council Minutes Ma 22 2004 Volume 36, Page357 the Quest program, district media centers, principals, secretarial staff and supplies, internet costs and elimination of co- curricular activities. This would hopefully keep the teacher to student ratio at an acceptable level. Other Reports, Announcements and Presentations. Report on Commercial Fish Expo in Kodiak given by Margaret Branson. She spent time talking with people about the boat harbor. Branson noted that Kodiak had a 6% sales tax, with I%, or one million dollars, devoted to the Harbor and Cargo fund. Kodiak would be changing their moorage rates. Vessels larger than 38 feet would be going to a square foot measurement, and rates would increase 300% within the next 3 years. The reason was, it was costing them $170,000 a year to maintain the harbors. They had three harbors with round the clock staffing. One harbor would increase the width and length of slips since most of their boats were huge. Branson did not think it was well attended. There was very interesting talk and stories on tsunamis, and the population of Kodiak had grown to 15,000 people now. Citizens' comments on any subject except those items scheduled for public hearing. Tim McDonald hoped another basketball court would go into Hoben Park. He informed an advisory petition was being circulated which stated the boating public had no confidence in boat harbor management, and should have signatures within 30 days. Doug Olson, had tried to be a more objective observer as late, and would try to be more diplomatic when participating in the public process, but was frustrated. He felt Council needed to tell our administrators what to do. Olson thought it was a major oversight in the harbor design to revolve around maximum slip fees when recreational slip holders didn't spend much money here. He wanted the harbor to be more diversified and supported the citizen's plan. Approval of agenda and consent agenda Motion (Branson /Dunham) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -31, supporting the Life Alaska tile project. Resolution 2004 -32, authorizing the City Manager to exercise the option to extend the snow removal contract with the Afognak Construction and Excavating Inc. for the period beginning November 30, 2003 to April 1, 2004. Resolution 2004 -34, supporting the passage of SB 247, which amends the Natural Gas City of Seward, Alaska City Council Minutes March 22, 2004 Volume 36, Page358 Development Authority Act of 2002. Approval of the February 23 regular city council meeting minutes. The following was unanimously added to the agenda: Discussion of Natural gas line point item list and set a work session. City Council took a 10 minute recess at 8:20 pm City Council resumed at 8:30 pm Public hearings Resolutions requiring Public Hearing Resolution 2004 -26, authorizing the City Manager to enter into a permit agreement with TelAlaska, Inc. dba Interior Telephone Company for the purpose of installing telecommunication lines within certain docks and the float system at the Seward small boat harbor. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Shealy stated TelAlaska had requested permission to access certain docks and floats to install telecommunication lines. This would give slip customers telecommunication services which they had been requesting. Motion (Dunham/Shafer) Approve Resolution 2004 -26 In response to questions by Valdatta, Harbormaster Jim Beckham stated this was not for emergency or pay phone services. The wiring would be there for any improvements in the future. This service would extend to the new concrete floats of E, F, H & J. TelAlaska would only be upgrading the concrete floats. Motion passed Unanimous Resolution 2004 -27, authorizing the sale of Lot 1A, Block 4, Fourth of July Creek subdivision Seward, Alaska to Patrick Marrs, dba Communications North, and termination of the existing lease. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Shealy stated the City currently leased this property to Pat Marrs. Marrs had requested to purchase the property, and code provided council authorization and negotiations. Shealy recommended sale of the property for the appraised value of $23,000, and requested approval to enter into a sales agreement. City of Seward, Alaska City Council Minutes March 22, 2004 Volume 36, Pa e361 Unfinished business - None New business Resolution 2004 -33, opposing Senate Bill 245 (SB 245) which would make harbor officers eligible for retirement after 20 years rather than 30 years of service under the State of Alaska Public Employees Retirement System. Motion (Dunham/Shafer) Approve Resolution 2004 -33 Shealy stated PERS issues were a state dilemma. In September 2002, the state published a report that Seward was overfunded in PERS by $622,000. A short year later, their August 2003 report showed Seward had an unfunded liability of over 5 million dollars. He was told to expect a 5% increase per year on PERS rates over the next 5 years. This would result in an expected annual increase of $186,000 for 2004, and up to $900,000 increase by the 5`" year. A significant portion of these increases was a result of benefit approvals by the state for municipal employees. He recommended opposing further benefit approvals at this time. Shealy stated these were the numbers the state had given. He noted the Universities had the same type of dilemma. He felt the State was further compounding the expense by increasing benefits and insurance for retirees at an early age. Dunham was worried if Wesley defaulted the City would have to pay their unfunded liability Motion passed Unanimous Resolution 2004 -35, supporting the Kenai Peninsula Borough in exercising the power to fund co- curricular activities above the cap for the students of Kenai Peninsula Borough School District Motion (Branson /Shafer) Approve Resolution 2004 -35 Shealy stated this would authorize the borough to fund co- curricular activities outside the tax and authorize direct funding of those activities. Motion passed Unanimous Resolution 2004 -36, opposing House Bill 91 (HB 91) which would increase cost -of- living allowance and medical benefits for retired peace officers after 20 rather than 25 years of service under the State of Alaska Public Employees Retirement System. Motion (Branson /Shafer) Approve Resolution 2004 -36 City of Seward, Alaska City Council Minutes March 22, 2004 Volume 36, Page362 Mayor Brossow stated he had a conflict of interest. This decision could affect his income. There were no objections. Gavel turned over to Vice -Mayor Shafer. Brossow abstained. Shealy stated this was similar to the previous resolution of harbor employees, and would produce further erosion of the city funded liabilities. Shealy stated this resolution would oppose reducing the age of accessing those benefits. HB 91 would lower the age to 20 years, thus increasing municipality costs. Motion passed Yes: Amberg, Shafer, Clark, Branson, Valdatta No: Dunham Abstain: Brossow Resolution 2004 -37, amending the participation agreement with the State of Alaska Public Employees Retirement System (PERS), excluding elected officials of the City of Seward from participation in the PERS for all officials sworn into office after March 22, 2004 Motion (Dunham/Shafer) Approve Resolution 2004 -37 Shealy pointed out this would not affect this council, but would affect officials sworn in after today. He noted there was rationale that the expectation of liability to elected officials would be nominal, however, in cases where individuals could acquire benefits by future higher paying positions after leaving city service, increased the municipality's PERS liability significantly. Those costs would be assessed to the City of Seward. Brossow clarified that if a council member was vested, and went to a higher paying job for 3 years, the city would have to pay for all of those years at the higher job pay rate. Finance Director Kristin Erchinger, stated most municipalities assumed this retirement would be nominal. She stated if that person who went to a higher paying job after council, were a tier I employee, that person could now be eligible for full medical coverage also. That liability would fall on the City of Seward as one of those employers. She stressed this could be a tremendous liability to fall on the City of Seward that was not anticipated. Erchinger felt the City must protect themselves from potential liability by opting out of PERS for elected officials until such time these `loopholes' were addressed or closed. She stated this was happening all over the State of Alaska. In response to questions, Erchinger stated the original PERS quote from Providence Medical Center employees was anticipated to be 1.2 million liability. The new number that was just recently quoted from PERS was 3.88 million for Providence, and was based on a new actuarial report. PERS had never fully closed out any companies until the hospital, and it took a long time to get that final figure. City of Seward, Alaska City Council Minutes March 2 2 2004 Volum 36, Page363 Motion passed Yes: Shafer, Amberg, Branson, Dunham, Brossow No: Clark, Valdatta Other New Business Items Give direction to the administration on construction of SMIC restrooms. Shealy summarized that portables were discontinued when the cost went to $12,000 a year. He stated the Public Works department did not recommend a vaulted toilet, because they were afraid it could hurt the sewage treatment pond. Beckham estimated a cost of $50,000 with annual operating cost of $13,000 to construct facilities at SMIC. Administration wanted to know if it was council's wish to go out for an RFP for design. They stated there were no funds readily available at this time. It was reminded that the General fund was covering the deficit at SMIC already. Discussion revealed it was a convenience that was needed and it would draw more people to that area, but would have to be a stand alone facility, built tough with a security camera, so it would not be destroyed. It was decided to add SMIC restrooms to the budgeted items for next year's budget. Discussion on area fish enhancement and charter boat fees Dunham thought it would be a good idea to enhance area fish to celebrate the 50 anniversary of the Silver Salmon Derby next year. He stated it was time to take a serious look at establishing a fee system from Charter boat operators to support annual enhancement. Dunham believed the City could participate in fish enhancement which would improve the resource that those businesses were targeting. A work session was scheduled for April 12 at 6:30 pm. Discussion of City Shop relocation Branson had spoke with First National Bank about financing options. The City could borrow the money and use the land as security. There were 32 lots and a possibility through sale, that the shop could be located with that money. She requested a work session. Shealy stated that staff needed a few weeks to pull old files and put some new figures together. Clark suggested co locating with the State DOT shop. A work session was scheduled for Tuesday, April 27 at 7:00 pm. City of Seward, Alaska City Council Minutes March 22, 2004 Volume 36 Page364 Discussion on the preliminary timeline for replacement of the long -term care facility. Shealy would present a proposed contract and resolution at the next meeting for consideration and action, to hire the firm that helped the City with the Denali application, for a cost of about $65,000. Schedule a work session on the Stranded Gas Act and gas line. Dunham advised Seward was included in this bill, and there were 8 item points that needed to be addressed to send with the report within 60 days (There were only 50 days left). A lot needed to be addressed such as; the share of the PILT, revenue caps on property, school formulas, fees and administrative impact. It would take a full understanding for economics to provide evidence on how municipalities would be affected and if it was feasible. Administration would look into that and try to find a solution tomorrow. Informational items and reports Report on BMX course Council comments Shafer congratulated Mitch Seavey on winning the Iditarod and was glad the town was having a celebration Friday. She mentioned maybe Mitch could be the head of the 4` of July parade this year with his dogs. Branson enjoyed her trip to Kodiak, and suggested holding a meeting in Seward with the Mayors and City Managers of the Tustumena cities of Cordova, Valdez, Seward, Kodiak and Homer Valdatta complimented the Seavey family. He congratulated the children who had state tournaments last weekend. He was curious to see how the public felt about an ice rink designed by Portico for that area of downtown which could be used in the upcoming Arctic Winter Games. Amberg also congratulated Mitch Seavey. Brossow also wanted to congratulate Mitch on the Iditarod win. He pointed out his mother had her letter stamped in Nome the year Dan Seavey carried them to Nome. He congratulated the girls basketball team for taking 4` in State, and the cheerleaders and their competition. Brossow notified he had regretfully submitted his resignation effective March 31, 2004, due to a medical situation he was having a hard time dealing with that occurred a long time ago. City of Seward, Alaska City Council Minutes March 22 2004 Volume 36, Page365 Citizens' comments - None Council and administration response to citizens' comments Branson understood why Mayor Brossow was resigning, but was sorry to see him go. Shafer seconded that. Brossow stated he felt he had no other recourse. Dunham stated this was a terrific loss. He felt Brossow was a solid activist within the community and it was a sad situation. He would miss him and wished him the best. Adjournment (Branson) The meeting was adjourned at 10:28 p.m. Jean ewis City lerk e n C. David Brossow Mayor .. ®I eti1uu rrr m r s. � � • r Bq � City of Seward, Alaska City Council Minutes Ap 12 2004 Volume 36, Page366 Call to order The April 12, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice -Mayor Vanta Shafer. Opening ceremony Dunham led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Willard Dunham Linda Amberg Kevin Clark Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Brad Meyen, City Attorney Absent: Mayor C. David Brossow Special orders, presentations and reports Proclamations and Awards Borough Assembly Report. Borough Assembly Representative Ron Long stated they passed a resolution honoring Mitch Seavey for his Iditarod win and the flat tax had passed. They hoped to bring service industries back to the Kenai Peninsula Borough. The Borough had certified the special election which would fund co- curricular activities for the schools. Although funding these activities failed by a narrow margin, the Seward precinct had voted for it. He mentioned the Assembly had introduced an ordinance to appropriate $30,000 to fund fish enhancement, and needed $15,000 from this area locally. Long reminded the public that the Assembly would be meeting May 4 th in Seward for their annual meeting, and they would introduce the budget that evening. City Manager's Report by City Manager Phil Shealy. ➢ Shealy stated D.O.T. would hold a public meeting tomorrow to discuss airport alternatives. City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36 Page367 ➢ Portico would be holding the design phase of the multi- agency facility, April 13 through 15, and were requesting public input on the proposed project Wednesday April 14 at the Rae Building. ➢ Shealy reported that the Stryker group met with various groups and were looking at different ports for the deployment of armed forces. Another group would look at strategic components and the harbormaster would arrange representation to visit with these people. ➢ Shealy informed the Harbor would remain open during construction with Wilder. Wilder would have offices in the old Marathon Oil Building, and the Corps of Engineers would be housed at Sally Wakefield's residence. Funding for the breakwater and inner harbor improvements come from two grants: DOT in the amount of 2.9 million, and an EDA grant for 1.3 million, for a total of 4.2 million. Out of this total, 2.3 million would pay for the Corps project, with 1.9 million available for harbor improvements. Shealy urged council members to visit other harbors or do their own cost comparisons. ➢ He had recently visited Juneau with council members Shafer and Dunham, and needed to determine who was going to Washington D.C. in May. ➢ He reminded council of work sessions scheduled for Monday, April 26 on marketing and Tuesday, April 27 on city shop relocation. ➢ Shealy anticipated signing a contract not to exceed $2,400 for a consultant to re -write and adjust the comprehensive plan. ➢ In response to questions by Valdatta, Shealy stated Wilder would make the final determination on the use of rock from our quarry. City Attorney Report. City Attorney Brad Meyen stated the re- funding bonds for the hospital were completed. They were working with the harbor on re -writes of various leases, and had reviewed a few Planning and Zoning matters also. Chamber of Commerce Report. President Rick Blythe stated he was in favor of Resolution 2004 -42, supporting the "Blast from the Past" weekend. They had interviewed nine applicants for Chamber Director by telephone and had four finalists. They were quite optimistic of making a decision and offer by next week. He notified that Alaska Railroad travel was up by 17 %, and made a formal request to have a work session before the April 26 meeting to discuss branding. Other Reports, Announcements and Presentations. Presentation given on Seward Marine Industrial Center (SMIC). City of Seward, Alaska City Council Minutes April 12 2004 Volume 36, P age368 Citizens' comments on any subject except those items scheduled for public hearing. Dorene Lorenz, stated the Friday Firesides put on by the Historic Preservation Commission had ended for the year, and they were now looking toward National Historic Preservation Week. They had decided to throw a `Blast from the Past" party, and hoped to have auto clubs, music, William H Seward's great -great grandson, Senator Lisa Murkowski, and Ex- Governor Wally Hickel in attendance. Tom Swann, spoke in favor of holding "Blast from the Past." They had met with the Downtown Business Association, looked into insurance issues, and foresaw no problems. Tanya Sandefur, was shocked at the lease approval for Deb Altermatt in the harbor. She stated there was a parking issue, with too many lost spaces, and would do a referendum to reverse the decision. Tim McDonald, spoke again about his serious lack of confidence in the harbor administration. Deborah Altermatt, wanted to enhance the businesses in the harbor area, not deter from them. She had met with the Administration to address fire lanes. Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Approval of the March 8, 2004 city council meeting minutes. The following was pulled from the agenda: Resolution 2004 -39, amending the city parking fees schedule for city -owned parking lots as listed in attachment A. The following was added to the agenda. Set the time for the Marketing Work Session on 4/26. Line Item Reports Schedule a Budget long term WS Establish fish enhancement Ad Hoc Committee Mayor establish an Ad -Hoc Citizen Advisory committee and appoint members. City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36 Page369 Public hearings Resolutions requiring Public Hearing Resolution 2004 -19, approving Phase 1 of the Seward Small Boat Harbor Planning and Development Guide (The Guide) and Preliminary Project Budget. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Phil Shealy stated this resolution had been previously passed and clarified it was up fora vote tonight. Charles McEldowney, had heard comments in the media of declining fisheries, and reported that although salmon prices were declining, the overall revenue from it was increasing, as well as the quantities. More linear space was needed to accommodate these vessels. He observed Plan N3 added three cranes. He pointed out a public crane was a good idea, but would be expensive and stated Homer was having a hard time paying for their cranes. McEldowney also noted his cranes had not been used in over two weeks. Margaret Anderson urged the council to not approve a plan right now. She stated the city only had 1.9 million for inner harbor improvements. She thought council should visit the harbor and visit the T -dock and see first hand what needed to be updated. Anderson stressed council look at the ability to pay for the harbor when making their decision. Dave Crane wanted Resolution 2004 -19 voted down. He thanked the council for the positive work session last week. More time was needed to work on this plan and request it be voted down, not postponed. Eric Landenburger wanted the citizen's plan. It had 60% more slips, moorage and grid space, and he thought that was important for a working harbor. He felt there was more revenue to be pulled in and commercial fisherman brought a lot into the town. Bob Linville, had fished for 15 years, and did not want to lose the commercial fishing businesses. He urged council to vote no on this resolution and talk about the benefits of the citizen's plan. Brian Beaver stated Seward had a wonderful harbor. The main inadequacies he saw were no shore power and drive -down pier. Boats were going to Seattle because it took weeks to get hauled out. Rhonda Hubbard, thanked council and urged them to take leadership and vote down Resolution 2004 -19 tonight. She heard a suggestion of a project committee appointed, with an administration or council liaison also being appointed. This committee would take information, identify what people wanted, and apply what the community needed. Hubbard thought locals knew their community best, and wanted a fair and winnable solution. City of Seward, Alaska City Council Minutes April 12 2004 Volume 36, Page370 Tim McDonald, stated the F/V Peggy Joe was one of the most valuable commercial fishing vessels in the State of Alaska. Pat Marrs, liked the citizen's plan for a few reasons. He thought the city needed the Fisheries and the customers that they brought in. He did not feel there was enough support for Plan N. Karl VanBuskirk, wanted Plan N voted down because it did not suit Seward. He felt the City needed to be fiscally responsible, and there was no hurry. It would be a waste to spend too much money that could not be paid back. David Brindle, thought the commercial fishery industry had a lot of room to grow, and could attract vessels to this community. He urged council to vote down Plan N and use the citizen's plan as a model to go forward with. Diane Dubuc, said it was cheaper for her to go to Homer, than lift on the 250 -ton travel lift and stated Homer was a working harbor. Manfred Dietrich, hauled freight and pointed out the need for a loading ramp. He felt it could be a revenue producing industry that could pay for itself. His idea was to leave slips on the west side, go with wooden floats to save money to repair the damaged T -dock. Jim Hubbard, urged council to vote no and move forward. Motion (Dunham/Clark) Approve Resolution 2004 -19 Clark clarified the breakwater had already been decided. Amberg wanted to address the cost of wood vs. concrete at this time and would not support the resolution as was. Dunham contacted Petersburg harbor. They had put in concrete floats, but would go with wood for the next ones. He could not support Plan N without further adjustments. Motion Failed Unanimous Council took a recess at 9:15 pm. Council resumed at 9:25 pm. Unfinished business - None City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36 Page371 New business Resolution 2004 -38, accepting State of Alaska Department of Corrections capital project grant in the amount of $4,600.00 and appropriate funds. Shealy stated this grant from the State was for jail maintenance repair, renovation and safety equipment. No match was required. Motion (Branson / Amberg) Motion Passed Approve Resolution 2004 -38 Unanimous Resolution 2004 -39, amending the city parking fees schedule for city -owned parking lots as listed in Attachment A. Shealy stated this was one of the changes recommended during the 2004 budget cycle. Parking fees were set by resolution per code and were raised. Motion (Branson/Dunham) Approve Resolution 2004 -39 In response to Dunham, Shafer clarified that launch fees went into one fund and parking funds into another. Motion Passed Unanimous Resolution 2004 -40, appropriating $8,995 from the General fund fund balance to purchase the Hofman 3850 Tire Machine from Alaska Automotive Equipment, Inc. Shealy stated Public Works was requesting this purchase primarily because the size of wheels were getting larger on the newer vehicles, and the existing machine would not accommodate them. They had obtained three quotes, with the lowest being $8,995. This purchase was not included in the 2004 budget. Motion (Branson /Clark) Approve Resolution 2004 -40 Comments indicated this item should be included in next year's budget since it was still operable. Clark wanted to get out of the habit of going into the general fund for purchases. Motion Failed Yes: Branson No: Amberg, Shafer, Clark, Dunham, Valdatta City of Seward, Alaska City Council Minutes April 12 2004 Volume 36, Page372 Resolution 2004 -41, approving the electrical meter reading agreement without competitive bids /proposals between the City of Seward and Michael 0 Conner dba Mo's Meter Service for three years with an option to extend two years upon satisfactory performance and approval by the City Manager and authorizing the City Manager to execute the agreement. Shealy stated Michael O'Conner had performed these contracted services since 1999, and had done an excellent job. He recommended his services be retained and a new contract signed. O' Conner had proposed a 5% increase in his contract which resulted in $135 extra per month. This would increase the price of reading a meter from $1.05 to $1.10. Shealy stated the City currently had 2,471 meters, and sufficient funds existed in the electric enterprise budget to absorb the increase. Motion (Dunham/Clark) Approve Resolution 2004 -41 Valdatta appreciated the door hanger service this contractor had provided. Motion Passed Unanimous Resolution 2004 -42, recommending City Council support for the "Blast from the Past" on May 8 2004 during the annual observance of National Historic Preservation Week. Shealy stated the Historic Preservation Commission would host this event at the same time Parks and Recreation would be hosting a bike rodeo. There would be a parade, vintage car show and street dance downtown. The cost associated with this event would be nominal, and the City's insurance coverage would cover the activity, and he recommended approval. Motion (Dunham/Clark) Approve Resolution 2004 -42 Motion Passed Unanimous Resolution 2004 -43, accepting fully reimbursable Historic Preservation Travel Grant in the amount of $9,914.52 from the State Office of History and Archaeology, Department of Natural Resources and appropriating funds. Shealy stated this covered the cost for staff and commission members to attend a conference in Skagway entitled "Saving Alaska's Past for the Future." The City would pay for the expenses upfront, with the State to provide full reimbursement upon completion of travel. He recommended approval and acceptance of the grant. Motion (Dunham/Clark) Approve Resolution 2004 -43 In response to questions, Shealy stated there was a match, but time from staff counted as the local contribution. Motion Passed Unanimous City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36 Page373 Resolution 2004 -44, authorizing the execution of an equipment lease /purchase agreement by and between the City of Seward and Key Government Finance, Inc. and providing for related matters. Shealy stated that in February 2004, council authorized the purchase of 40 self - contained breathing apparatus (SCBA's) from Eagle Enterprises. This resolution came as a response to RFP's put out to obtain the financing. For part of the cost, a grant would be utilized, reducing the original price from $150,000 to $117,000. The RFP requested financing over a 7 year period, with low coming in at 3.81 percent by Key Government Finance Inc. Shealy reported there was sufficient monies to pay for the equipment lease without additional appropriations, although subsequent budgets would be prepared to cover the $19,000 annual costs to cover the lease payments. Motion (Valdatta /Clark) Approve Resolution 2004 -44 Valdatta was glad they went with Eagle because the equipment would now be uniform with other departments on the Peninsula. Motion Passed Unanimous Resolution 2004 -45, authorizing the execution of a contract by and between the City of Seward and health facilities planning and development, for an amount not to exceed $65,000, for planning the replacement of the long -term care facility (laydown version). Vice -Mayor Shafer declared a conflict of interest because of her employment at Providence. Gavel was handed to Senior Member Branson. Branson declared a conflict existed. Shafer abstained from discussion and voting. Shealy presented wording changes upon recommendation of the City Attorney, which were in the laydown version. He summarized the federal government attempted to close the long -term care facility in 2002. Only after the City entered into an operating and management agreement with Providence to co- locate, did the government agree to allow the nursing home to remain open. The hospital was losing between $500,000 to 1 million dollars in operating costs. Since co- location, Providence ended the fiscal year in a positive net income for the first time in years. This would indicate co- location does work. In addition, Shealy noted Providence /Wesley was one of the largest employers in the community, and efforts should be taken to keep this economic engine going in Seward. He felt to ensure continued viability of this co- location and Providence, the City must immediately proceed with replacing the long -term care facility. He recommended an agreement be entered with Health Facilities Planning and Development, Inc. to provide statements, plans, site selection, analysis' and other technical services before the City could enlist an architect for design. This cost would be $65,000, with funds coming from sales tax proceeds originally set -aside for Seward General Hospital closing costs in 1996. City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36, Page374 Motion (Dunham/Clark) Approve Resolution 2004 -45 (laydown version) In response to questions by Valdatta, Shealy stated this same company had helped the City file the letter of intent with the Denali Commission. This would be a replacement of the older facility with 40 beds. Dunham had spoken with the Commissioner in Juneau, and thought this was needed to move forward. Shealy stated an RFP process would take time and effort. This company had more than fulfilled the requirements, were well recommended, and the City wished to continue the relationship with them. Finance Director Kris Erchinger reported this company had worked with Providence on major renovations in the past, and found their fees were considerably lower than other companies. They were highly recommended, there were benefits in going with this company, and thought that was important when dealing with a project of this nature. Dunham announced the Denali Commission had requested the proposal be re- submitted and thought this company could help with that. Motion Passed Yes: Amberg, Branson, Clark, Dunham, Valdatta No: None Abstain: Shafer Other New Business Items Accept the resignation of Mayor David Brossow effective April 10. Motion (Branson / Amberg) Accept the resignation of Mayor C. David Brossow effective April 10, 2004, and declare the Mayor seat vacant. Motion Passed Unanimous Nominate and appoint Mayor from within council, and direct clerk to advertise council member vacancy. Motion (Branson /Dunham) Nominate and appoint Vanta Shafer as Mayor, and advertise for a council vacancy. City of Seward, Alaska City Council Minutes April 12, 2004 Volume 36, Page375 Motion Passed Unanimous Vanta Shafer was sworn -in as Mayor effective April 12, 2004. Nominate and appoint Vice - Mayor. Motion (Valdatta /Branson) Nominate and appoint Willard Dunham as Vice -Mayor Willard Dunham was nominated and appointed Vice - Mayor. An annual work session with Planning and Zoning was scheduled for April 20 at 7:30 pm. Discussion ensued on the purchase of a Fire Boat. A work session with the Chamber on Marketing was scheduled for April 26 at 6:30 pm. Reports for PACAB and P &Z. Council liaisons Dunham and Branson would give periodic reports from PACAB and P &Z. Schedule a Budget long term work session. It was decided to address this during next year's budget cycle, and quarterly reports were requested. Mayor Shafer established an Ad -Hoc Citizen Advisory Committee and appointed members: Nick Ranta, Jim McCracken, Diane Dubuc, Paul Carter, Willard Dunham, and alternate Bob Valdatta. Motion (Dunham/Amberg) Mayor established an Ad -Hoc Citizen Advisory Committee "and appointed: Nick Ranta, Jim McCracken, Diane Dubuc, Paul Carter, Willard Dunham, and alternate Bob Valdatta. Motion Passed Unanimous Informational items and reports — None City of Seward, Alaska City Council Minutes April 12 2004 Volume 36, Page376 Council comments Amberg congratulated the Mayor and Vice Mayor. Clark stated he would miss David Brossow. Dunham thanked all for the Vice -Mayor appointment. He thought Senator Murkowski would be in town soon to tour Wesley and SMIC, and informed of the Economic Development District forum on April 16. Valdatta wanted to speak with Young and Stevens and push for SMIC. Branson asked Shealy to evaluate the tire changes out of the shop and expressed her sympathies to Brossow for having to resign. Shafer appreciated the Mayor appointment, and hoped to do a good job. She gave a report on their trip to Juneau. The 0 -8 mile road project was pushed back and would go to bid in 2004. Many issues were discussed and she was very interested to see how the State and Municipalities would address the PERS /TERS issue. Shafer thought it was a good idea to have council members go to Valdez and Petersburg and visit harbors. Citizens' comments —None Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 10:30 pm. Jea ti Lewis Cit Clerk Vanta Shafer Mayor (City Seal) ° aetu�uy� ® —a— �•� w •n J » C) . "•° � "� 1 ar �;,Vr4 d i a 6Ub °' %,,, City of Seward, Alaska City Council Minutes April 26 2004 Volume 36, Page377 Call to order The April 26, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Willard Dunham Linda Amberg Bob Valdatta Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — None Special orders, presentations and reports Proclamations and Awards National Historic Preservation Week. Historic Preservation Annual Award given to Brown & Hawkins family legacy. Annual Bike Rodeo. Super Saturday Clean -up Day. Borough Assembly Report. Borough Assembly Representative Ron Long was not present. City Manager's Report by City Manager Phil Shealy. ➢ There had been previous approval for disposal of a sliver of land on the Railroad land in the harbor, and P &Z did not recommend leasing the rest of the lot due to parking concerns. Council did not adopt their recommendations, and addressed the City of Seward, Alaska City Council Minutes April 26, 2004 Volume 36 Page378 remaining portion of the lot with the recent Altermatt /Carter lease. This became a somewhat contentious issue to retain parking in front of Chinooks, so Altermatt and Carter agreed to modify their lease. The referendum would be withdrawn tomorrow. ➢ Harbor parking lots would be re- striped this summer. ➢ It appeared Wilder Construction would file plans to use Borough quarry rock. The City would work with them to entice use of the city quarry. ➢ Bids were opened on the Forest Acres Waterline, and appear to be under estimate. Shealy would put this on the next agenda for adoption. ➢ Shealy was cautiously optimistic Seward would be added to the Senate bill regarding prisons. In response to questions, Shealy stated the waterline would be constructed on an easement, and would not be tied into. He informed there still was no subdivision agreement with the Schafer's. He thought the Governor's staff would be here in May to address the LVL plant. Chamber of Commerce Report by Chamber Board Member Lori Draper. Other Reports, Announcements and Presentations. Paradise Valley but -to -hut proposal by John Wolfe of Alaska Mountain Wilderness Huts. They were a non - profit organization run by volunteers, and were proposing to establish huts along the Paradise Valley Trail, up to Ptarmigan Lake and down into Snow River valley. Rules were suspended to allow a question from the audience. P &Z liaison report by Margaret Branson. PACAB liaison report by Willard Dunham. Citizen Advisory Committee Meeting report on fish enhancement by Willard Dunham. They would try to raise the $15,000 to match the money set -aside for fish enhancement from the Kenai Peninsula Borough. He discussed possible ways to raise this money on a permanent basis. Citizens' comments on any subject except those items scheduled for public hearing. Duane Levan, spoke in opposition of the but -to -hut proposal. He advised a petition signed by 400 people from Seward, Moose Pass and Cooper Landing was circulating. Tim McDonald, felt extreme protectionism was warranted on the but -to -hut proposal. This was a business riding on the Forest Service coattails. He congratulated the city administration on City of Seward, Alaska City Council Minutes April 26 2004 Volume 36, Page379 coal patching of roads, and stated more maintenance was needed on the roads and to start budgeting now. McDonald opposed fish enhancement because of the need to protect the tributaries. Rhonda Hubbard, wanted the harbor to remain at the top of the list and wanted to be part of the solution. She requested council stay on top of that and maintain leadership. Approval of agenda and consent agenda Motion (Branson / Amberg) Approval of Agenda and Consent Agenda Amendment (Dunham/Valdatta) Amendment Passed The following was added to the agenda: Discussion of a house /joint resolution. Schedule a work session on the Harbor. Main Motion Passed Add two items to the agenda Yes: Amberg, Clark, Dunham, Valdatta, Shafer No: Branson Yes: Valdatta, Clark, Dunham, Amberg, Shafer No: Branson The clerk read the following approved consent agenda items: Resolution 2004 -50, accepting FY 2004 Alaska Highway Safety Grant Award and appropriating funds. Public hearings None Unfinished business - None New business Resolution 2004 -46, recommending changes to the U.S. Army Corps of Engineers (USACE) continuing authorities program (CAP) and supporting funding of the program as authorized under PL 86 -645. Shealy stated the cost to complete projects had risen. This raised the current level of total funding nationally from 35 to 56 million, and the total per project from 4 to 10 million. We would instruct our delegation to support this increase in funding. City of Seward, Alaska City Council Minutes April 26, 2004 volume 36 Page380 Motion (Dunham/Valdatta) Approve Resolution 2004 -46 Valdatta stated this increase could benefit the Citywith flood control and SMIC area projects, and he would support it. Motion passed Unanimous Resolution 2004 -47, designating the Seward Chamber of Commerce as the lead marketing entity and directing that a written agreement establishing accountability be prepared. Shealy noted this would set policy to work together and create an agreement. When completed, this agreement would need to be approved by the Chamber Board and Council. Motion (Clark/Dunham) Approve Resolution 2004 -47 Clark stated he would be informally sitting on this committee, and thought it possible to have an administrative representative sit on the committee also. This resolution would bring both parties together to brainstorm, and would have no fiscal impact for now. Amberg had concerns on the accountability, and could not support something that meant more cost to the City. Motion passed Unanimous Resolution 2004 -48, authorizing payment in the amount of $350,000 to the State of Alaska Department of Administration, representing 16% of the total amount due of $2,129,884 for the 1996 termination of Seward General Hospital from coverage under the State of Alaska Public Employees Retirement System. Shealy stated in 1986, PERS was modified to include Seward General Hospital employees and to purchase all eligible past service credits. This agreement was terminated in 1996 when a management agreement was entered with Providence to administer the hospital. The final termination liability from PERS was 2.1 million dollars. He recommended a down payment of $350,000 which left $461,000 in the hospital debt reserve fund. This left an outstanding liability to the City of 1.8 million dollars, which would accrue interest of 8.25% effective May 1, 2004. This would equate to an annual payment of $210,000 for 15 years. Motion (Dunham/Clark) Approve Resolution 2004 -48 In response to Valdatta's question on how the City ended up with this liability, Shealy stated the PERS liability was incurred when the hospital employees became city employees in 1986, and we also took their unfunded liability. The current sales tax paid down the hospital debt bond. He reminded the City had the same issue with current city employees. Shealy also explained the City City of Seward, Alaska City Council Minutes April 26 2004 Volume 36, Page381 had $800,000 earmarked to repay hospital debt, pay down hospital PERS liability, and meet capital needs. He recommended using only a portion now to not exhaust the fund. Finance Director Kristin Erchinger stated the City had been trying to get a liability number for 8 years. Had PERS known the outstanding liability balance at the time in 1996, the City could have paid off the debt. She informed that PERS had not charged interest on the debt since then. Erchinger presented that PERS originally stated this debt was 3.8 million, but was settled at 2.1 million owed, which was close to the original PERS estimate in 1996 of 2 million. The City had originally thought the figure would be close to 1.2 million based on their assumptions. Because of the closure of the hospital, which was not foreseen at the time, this became a lump sum, past debt owed with interest to begin May 1, 2004. Because of public inquiry by Valdatta, Erchinger emphasized that bond debt to pay PERS liability was not allowed according to bond covenants. Bond funds must be used strictly for capital improvements, so it could not have been the intent or assumption from the beginning to use bond funds to pay the PERS liability. Erchinger stated the payment schedule with PERS was flexible and negotiable. The goal would be to pay it down as soon as possible because it was accruing interest. Motion passed Unanimous Council recessed at 9:05 pm Council resumed at 9:15 pm Resolution 2004 -49, authorizing the City Manager to enter into an agreement with Bob's Services, Inc. to provide, fabricate, and install a utility bed on the Electric Department's one -ton pickup chassis at a cost of $21,490.00. Shealy expressed after RFP, only one bid was received. Funds were in the electric fund budget and he recommended approval. Motion (Dunham/Branson) Approve Resolution 2004 -49 Manager of Engineering and Utilities Dave Calvert, stated this utility bed was a sturdy frame with a crane on it, designed to carry a reel of wire. It must be specifically fabricated and replaced the old utility bed that was 13 years old. Putting it out to bid again would only delay the process. Motion passed Other New Business Items Unanimous Council to decide whether to send a member to visit area harbors. City of Seward, Alaska City Council Minutes April 26, 2004 Volume 36 Page382 It was decided not to send a member to visit area harbors at this time. Discussion on accepting a proposal from the Growth Company to conduct a study on the reorganization of city staff in engineering, community development and public works. Shealy had requested proposals from two different firms to evaluate options and develop a plan to increase productivity and possible re- organization. Funds were available to conduct this study. Council unanimously agreed to go forth with the study from the Growth Company. Discussion on street repairs, assessments or alternatives. Branson thought the idea of establishing assessment districts needed to be looked into to address dangerous and deteriorating road conditions. Shealy stated the City had 27.5 miles of streets to maintain. Administration would define worse areas by map, pull together assessment district information, and share findings with council at a later date. Discussion of keeping work sessions to council meeting weeks through the summer. Branson wanted work sessions confined to council weeks during the summer. Council unanimously agreed to confine work sessions to council meeting weeks for the summer. House joint resolution 30 discussion. Dunham stated this dealt with windfall retirement benefits, primarily State pensions. He stated the Chairman of State Affairs Committee was refusing to release it, and wanted to contact Senator Stevens to act now or it would be gone. Administration would contact the city lobbyist on the issue tomorrow. A request for work session on the East Harbor expansion would be put on the May 10, 2004 regular meeting agenda to set. Informational items and reports City Quarterly Financial Reports. Hospital Financial Report. Finance Department's receipt of National GFOA Award. Launch Ramp fee chart. City of Seward, Alaska City Council Minutes April 26 2004 Volume 36, PaAe383 Council comments Clark stated Portico would give a presentation in June or July on a business plan for maintenance and operating costs of the convention center. He stated Wesley was becoming a dangerous situation and was badly in need of replacement. He stressed the community needed to make this a priority project. Branson congratulated Kris Erchinger on her award. Valdatta complimented Bev Dunham on her first lady award. He felt the City needed to reduce the price of rock in the quarry. Dunham stated Rick Gifford's father had recently passed away and offered his condolences. He reminded that Senator Murkowski would be in Seward on May 8, and asked the town to keep the City clean all summer. Shafer congratulated the finance department for their hard work. She was concerned with high gas prices being a detriment to cities, and what Seward would be facing in the next year. Citizens' comments - None Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 9:55 p.m. Je Lewis City Clerk 'v ;: v✓t, / { t om . �J�=- '. Vanta Shafer Mayor (City�3 �� .•• . • p r) . 1� as "`t A •. g 10 rO sy a W P' ® i � e � f i e ® m at e � A �BFd P181 SYO�'� City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page384 Call to order The May 10, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Bob Valdatta Linda Amberg Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Erin Leaders, Assistant City Clerk Brad Meyen, City Attorney Absent — Willard Dunham Special orders, presentations and reports Proclamations and Awards A proclamation was read recognizing May 17 as Arbor Day in the City of Seward, Alaska. Mayor Vanta Shafer noted in honor of Arbor Day, Parks and Recreation would be adding shrubs and low lying trees to a new small landscape mound in the waterfront park. It would be located at the end of Madison street extension, just off the National Historic Iditarod Trail bike path in the campgrounds. This project was depicted in the 1999 Waterfront Park Improvement Plan as part of phase III. Borough Assembly Report. Borough Assembly Representative Ron Long reported the Borough had a budget presentation. The fund reserve had shrunk faster than anticipated, primarily due to PERS and TERS along with some investment losses. Some options being looked at to restore that fund reserve were three tenths of a mill increase to the property tax, a change to the sales tax cap from $500 to $1,000, and they would like to look at the fiscal impact if the exemption on the senior housing were limited to the first $150,000 or thereabouts. Work sessions would take place on May 17 and 18 and again on June 1 with hearings scheduled for May 18` and June l" City of Seward, Alaska City Council Minutes May 10, 2004 Volume 36 Page385 The Borough passed the $30,000 Cook Inlet Aquaculture Association fish restoration matching fund, and Long thanked council member Dunham for having led the charge in that discussion. G &S construction was awarded the contract for construction of the new middle school; they came in at $9,688,000.00. Some $400,000 of the added alternatives were dropped off the list for now, but the borough planned to do what they could to get those restored. A motion was brought up in the lands committee authorizing the president of the assembly to write a letter to the legislature regarding SB95; which was a bill introduced that would have exempted the ARRC real estate from planning, platting and land use regulations. In response to council member Valdatta, regarding road maintenance, the Borough had planned to pump up their fund reserve so they would have more money to apply to those projects. City Manager's Report. City Manager Phil Shealy stated in March council passed resolution 2004 -34 supporting an amendment to the Natural Gas Development Act of 2002 which would help bring a natural gas pipeline to the Cook Inlet basin. That bill was approved by both house and senate this past weekend and would be sent to the governor for his signature. ➢ Shealy reported there were discussions regarding the possibility of constructing a natural gas distribution system in Seward. The administration would be working on that project to see if they could move it forward. ➢ Shealy gave an update on spring street cleaning. The washing truck would be out starting tomorrow and the new vacuum truck would be working later this week. The road crews would distribute calcium chloride for dust control on some of the gravel streets. ➢ The City plans to impose road restrictions because of the damage occurring on some of the roadway surfaces. As of May 14 a 75% gross weight vehicle restriction would be posted on two streets; the first on Hemlock street from the Seward Highway to Dimond Blvd. and on Dimond Blvd. from Hemlock intersection to gravel portion of Dimond Blvd. just past Cedar Street. ➢ The judge was ill when the original hearing was scheduled on the Ace Hardware building; it had been rescheduled for Mayl9 at 10:00 a.m. in Anchorage. City Attorney Report. City Attorney Brad Meyen stated the past 30 days reporting period had been routine. They had advised the City on resolutions, procurement issues, administrative matters, easements and lease negotiations and worked with the planning department on issues related to the zoning code and platting action. He informed they continued to work with the Harbor Department on lease amendments and financing arrangements that lessees were seeking to obtain from banks. Chamber of Commerce Report. President Rick Blythe thanked council for passing the marketing resolution. The marketing board would be meeting on the 17 th to discuss the resolution City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page386 with administration, marketing committee and heads of the Chamber executive staff to move forward with it. An executive director had not been selected at this time. He reported they would be meeting Wednesday to review more re'sume's, several of which looked promising. Blythe gave an update on the budget and cash flow of the Chamber. The budget was in the negative about $45,000 but cash flow was better than that. In response to Branson, Blythe informed council that Dean Kasischke was the chairman of the Derby Committee and had received documentation regarding the requirements for the lease extension of the Derby booth in the harbor. School Board Report. Sandy Wassilie reported she had served on two committees and joined a legislative fly in to Juneau at the same time as the regular scheduled report. The school board had passed the budget she had talked about in her last report with a $3.5 million dollar cut. The school board is looking to revise the budget with add backs on June 7 They are looking at cuts of $3.5 million next year in addition to cuts through 2010 in preparation for their long range planning next month. Most of the cuts anticipated were due to the PERS /TERS situation. In Juneau, three of the board members attended a Boardman ship academy while two served on the statewide board and attended that meeting. Wassilie informed there was a presentation on the PERS /TERS situation and the $84.5 million increase to education included $35 million in PERS /TERS cost so it was not all going to education. One of the biggest cuts was to co- curricular. In the current budget co- curricular was not funded. There was talk of setting up service areas in Seward and Homer where there had been strong support for those activities. The board met in Seward on May 3 rd with a wonderful turn out and testimony from the community on the impacts of losing teachers and programs. The next meeting would be in June where the board would meet for two days. Other Reports, Announcements and Presentations. P &Z Liaison Report. Margaret Branson did not attend the meeting due to a conflict with another scheduled meeting. She reported they had reviewed the Seward Hazard Mitigation Plan, and the work done by High Tide Writing. A resolution was passed recommending the replat of two lots on 6 th Avenue. Council applicants: Stu Clark, Tim McDonald, Steve Schafer and Margaret Anderson. Each gave a brief presentation on why they felt they should be selected to fill the council vacancy. Citizens' comments on any subject except those items scheduled for public hearing. Margaret Anderson — expressed concern about the billings for changes to the Harbor Expansion referenced in resolution 2004 -56. Anderson stated the presentation was a historical one with numerous plans and drawings, she felt this belonged to the City and they should be careful City of Seward, Alaska City Council Minutes May 10, 2004 Volume 36 Page387 about maintaining and keeping this information. She made the point the City had paid for it so they should keep it. Steve Schafer — spoke in opposition of resolution 2004 -53. He requested this resolution be pulled from the consent agenda because he felt the "whereas" reasons stated in the resolution were not accurate or cost effective. Tim McDonald — spoke in opposition of resolution 2004 -53. McDonald stated he had similar machinery as the 966C and felt the City could save on labor and did not need to spend that money. McDonald stated road restrictions would cause problems and double the City's garbage cost and the Boroughs cost because 75% was gross vehicle weight and each dump truck would only be able to carry approximately 50% of their load. This would result in twice as many trips through Forest Acres for the same amount of garbage. Approval of agenda and consent agenda Motion (BransouNaldatta) Approval of Agenda and Consent Agenda The following was removed from the consent agenda and placed on the regular agenda. Resolution 2003 -53 approving the purchase of parts for the repair work to the 966C caterpillar front end loader, not to exceed $12,500.00. Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -51, authorizing the City Manager to pay Chugach Electric Association, Inc., $11,932.88 for repairs to the 115 KV transmission line damaged by a state initiated avalanche at Milepost 38. Resolution 2004 -52, authorizing the City Manager and staff to apply for a grant from "Save America's Treasures" in order to stabilize and preserve the Jesse Lee Home. Resolution 2004 -59, to approve $51,620.00 to be paid to CRW Engineering for Construction Management Services on the North Seward Water System Project from Grant #76911. Public hearings - None Unfinished business - None New business City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page388 Resolution 2004 11 approving the purchase of parts for the repair work to the 966C caterpillar front end loader, not to exceed $12,500.00. Motion (Branson /Amberg) Approve Resolution 2004 -53 Shealy notified the 1980 966C front end loader engine needed repairs due to overheating. The public works director had recommended council authorize the purchase of replacement parts to be charged to the street department account. In response to Valdatta, Public Works Director WC Casey stated the last new loader the City purchased was for $176,000.00 and that was smaller than the 966C. $9,000.00 had been put into the 1980 front end loader transmission about 3 years ago. The cylinders were rebuilt, hydraulics had been gone through, and a new re- manned engine was put into it (the engine rebuild was done in house in two weeks). Casey noted the in house repairs were cost effective and the machine would be well utilized by the City. In response to several questions, Casey explained that public works could look into generic parts but it was his professional opinion that it would be better to buy replacements parts with a warranty as offered by NC Machinery than to buy generic parts that have no warranty. He stated the 966C front end loader would last a long time because of how it was made, and he would be glad to look into putting safety devices on the machinery as recommended by council member Valdatta, and members of the public, Steve Schafer and Tim McDonald. Motion passed Unanimous Resolution 2004 -54, to approve awarding the North Seward Water System Improvements Project to Peninsula Construction Inc. and authorizing the City Manager to sign the contract. Motion (Branson /Amberg) Approve Resolution 2004 -54 Shealy stated the City of Seward advertised for bids on the North Sewer Water System improvement project previously referred to as "Gateway Forest Acres" on March 22 and opened eight bids on April 22 " The bids were reviewed by the City's consulting engineers CRW and their recommendation was to award the contract to Peninsula Construction Inc. in the amount of $348,382.49. Peninsula Construction had met all bid requirements and submitted the lowest bid for the contract. The engineers (CRW) estimate on the job was $609,000. The funds were to come from an ADEC grant where there were monies to award the project. The administration recommended awarding the project to Peninsula Construction Inc. In response to Valdatta, Shealy noted the City was researching the possibility of using a portion of the funds to run a small loop down Hemlock, but they would like to award the contract before a decision would be made. Motion passed Unanimous City of Seward, Alaska City Council Minutes May 10, 2004 Volume 36, Page389 Resolution 2004 -55, determining that it is in the public's interest to waive the normal bid process per city code 6.10.130 and authorize the City Manager to enter into lease agreements with Xerox for the purpose of replacing and upgrading the copier at the police department. Shealy stated the machine in the police department was a leased item with excessive problems. The vendor had stated it was willing to buy back the current lease and provide a newer updated machine with more capabilities for a lesser cost than they were currently paying. The administration recommended approval of resolution 2004 -55 upon amendment to the beginning of section 1 (as requested by the City Attorney) to add a clause that reads: "for the reasons set forth in the recitals," City Clerk Jean Lewis read the amendment to council for clarification. Motion (Valdatta/Branson) Motion passed (Add a clause to the beginning of section that reads: "for the reasons set for in the recitals ") Approve Resolution 2004 -55 Unanimous Resolution 2004 -56, authorizing the City Manager to enter into an agreement with Tryck Nyman Hayes Incorporated (TNH) for Change #2 to the East Harbor Expansion inner harbor Phase 1 contract for $30,000 and appropriating funds. Shealy stated the staff had requested the engineers involved with the small boat harbor planning process prepare materials and make several presentations reviewing the history of the two year process that led up to the planning and development guide, in addition to analyzing several alternatives. The work was on a time and materials basis and did not include work on the existing contract. The time to prepare and present material amounted to 289 hours for an estimated $28,000.000. The City Manager requested authorization to execute change order #2 to the East Harbor Expansion Inner Harbor Phase I contract and to have council appropriate $30,000.00 to pay for the engineering work. Two sources of funding would be available, either the General Fund fund balance or the harbor funds. The City Manager recommended council designate where the funds should come from and that council approve resolution 2004 -56. Motion (BransonNaldatta) Approve Resolution 2004 -56 Valdatta recommended the funds come from the harbor because they had the uplands, they received the parking fees and he felt the harbor needed to start supporting itself. In response to Valdatta, Shealy reported half of the lift proceeds go to the harbor and half go to the general fund. Valdatta stated every year we steal from the general fund and that money City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page390 doesn't get paid back. Shealy replied there was no extra money in the harbor budget presented and approved for this year, there only appeared to be $456.00 left in that fund. Branson recommended the money come from the Eastward expansion fund. Motion to Amend (Branson /Amberg) Appropriate $30,000.00 from the harbor grant money account (account # 27400030710) to the harbor eastward expansion fund. Amendment Passed Unanimous Clark requested verification on how the City divided the extra work done verses the work that was covered under the original contract. He felt 289 hours seemed excessive. hi response to Clark, Shealy reported the City did not put hours with the different work tasks, but had provided council with a summary of tasks that had been completed to prepare their materials. There was a power point presentation given by TNH with an analysis of the different proposed layouts. Shealy informed Clark the original work in terms of the planning guide was completed and paid for last summer. The sole source contract that had been approved was for the design work necessary to proceed with the East harbor expansion. After the East harbor expansion design work was completed, a portion of the contract was extended and the rest was in limbo until the City decided what they wanted to do. Main Motion Passed Unanimous Resolution 2004 -57, allowing the use of Block 1 excluding Lots 1 & 2 located in the Seward Marine Industrial Center for the purposes of constructing and operating a Fire /Safety Training Facility in cooperation with State of Alaska Fire Service Training and Alaska Vocational Technical Center. Shealy reported three agencies, the State of Alaska Fire Service Training, AVTEC and the City of Seward Fire Department had been working together to develop a concept for a training area that would meet a multitude of basic fire and safety training needs. Each agency had agreed to donate something to make this possible. AVTEC had agreed to provide equipment materials and manpower for construction, the State of Alaska Fire Service would provide equipment and training materials, and the City had proposed to provide the land for the training center. The administration requested council to approve the use of City land for the training facility because the state entities were dealing with a fiscal year that ends June 30` and could possibly lose their funding. This plan has been presented to both PACAB and Council. This proj ect would provide multiple benefits to all three agencies by pooling their resources. There would be no additional fiscal impact other than the potential cost of surveying the property at a later date if the council decided to replat the lots in order City of Seward, Alaska City Council Minutes May 10, 2004 Volume 36, Page391 to sell or lease the unused sections of the property. Motion (Clark/Branson) Approve Resolution 2004 -57 In response to many questions, Fire Chief Dave Squires stated they had planned to use shipping containers to use for the training facility with a portion to look like a house and the other to look like a ship. The tanker car they planned to obtain would be a prop to fight fires on railroad cars and tankers so they could prepare the firefighters in Seward, Bear Creek and Moose Pass in the event they have an overturned tanker. Each entity would provide their own liability insurance for training that would take place at the facility; however, the City of Seward would be the official owners of the facility. The three entities would create a fund for operating and maintenance of the facility and would submit a budget to draw from that fund. All the fire departments had their own EMT's and an ambulance would be within 10 minutes of the training facility. Motion passed Unanimous Resolution 2004 -58, appropriating funds in the amount of $63,000 to the Providence Seward Medical and Care Center for the purpose of performing repairs on the sewer and electrical systems of the Wesley Rehabilitation and Care Center Building. Mayor Shafer declared a conflict of interest due to her employment with Providence. There were no objections and the gavel was turned over to senior council member Branson. Shafer abstained. Shealy stated the City of Seward began leasing the Wesley Rehabilitation and Care Center in April of 2003 and this facility had been utilized as the Providence Seward Medial Center long term care facility housing 35 residents. The estimated cost to bypass the broken sewer line was $50,000 and to repair the damage to the electrical equipment was $13,000. Providence Seward Medical and Care Center would engage the surfaces of contractors to perform the needed repairs. The funding would come from the City from an estimated $57,000 in remaining sales tax funds that were originally set aside for potential close out costs related to the closure of the Seward General Hospital in 1996. There would also be another $5,100 appropriated from the City's general fund balance to reach the amount of $57,000, the amount of repairs. The administration felt the repairs were necessary to keep the facility from being closed or from becoming a life safety problem. City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page392 Motion (Clark/Amberg) Approve Resolution 2004 -58 Motion passed Council recessed at 9:00 pm Council resumed at 9:10 pm Other New Business Items Yes: Valdatta, Clark, Branson, Amberg No: None Abstain: Shafer Schedule a work session on Phase 1 of the East Harbor expansion project. Mayor Shafer requested Kris Erchinger be present at the East Harbor expansion work session. The work session was scheduled for May 25, 2004 at 6:00 pm. Appoint a new council member to fill the vacant seat with a term to expire at the regular city election on October 5, 2004. Applications received from: Stu Clark, Tim McDonald, Steve Schafer and Margaret Anderson. On a written vote tally taken before the motion, there were 4 for Margaret Anderson and one for Steve Schafer. Motion (Branson / Amberg) Nominate and appoint Margaret Anderson to fill the vacant seat with a term ending October 2004. Motion Passed Unanimous City Clerk Jean Lewis announced Margaret Anderson would be sworn in at the next council meeting on May 24, 2004. Discussion of All- Hazard Mitigation Plan. Shealy asked the Mayor and Council to review the proposed plan and to consider any public input or suggested changes that people and/or council may feel necessary. With input received from council and the public, the plan would be submitted to the Kenai Borough, the State of Alaska and finally FEMA for review. Upon approval by FEMA, the plan would be returned to council for final adoption. Mayor Shafer clarified that the City Clerk and the Library both had the Hazard Mitigation Plan available for the public to review. City of Seward, Alaska City Council Minutes May 10, 2004 Volume 36 Page393 Amberg suggested a revised Hazard Mitigation plan reflecting Planning and Zoning's recommendations. In response to Valdatta, Fire Chief Dave Squires stated our plan would be an annex to the Borough plan and public comments were currently available on the borough website. Squires stated it was not necessary to have any further discussion on the plan unless council or the public would like to add anything to the plan. Informational items and reports — Hospital Financial Report for March 2004 Council comments Amberg — congratulated Margaret on her appointment to council. She thanked the other applicants for applying and asked that all applicants re -apply in October. Branson — commented on her visit to the shop last week. She stated the shop was crowded and a disgrace, and she would like to see that project move ahead. Branson was looking forward to having Margaret Anderson on the council. Shafer — notified the public that May 22 " would be kid's fish day at 1 5t lake beginning at 8:00 a.m. There would be a noon barbeque and prizes sponsored by the Fish and Game Advisory Committee and Parks and Rec. She updated the public on the D.C. trip she attended. Seward priorities discussed were the replacement for Wesley, Alpha Helix replacement, Multi- Agency facility, Lowell Canyon and being able to turn it back over to the Corps of Engineers, North Dock, and Seward Ships. Shafer stated communities needed to realize that change was coming and projects would be reduced to one project per community. Shafer was glad to have Senator Murkowski in Seward over the weekend during the Blast from the Past activities and she felt the Historical Commission had done a nice job organizing that. The Senator also toured Wesley and the Jesse Lee Home. Shafer welcomed Margaret to the council and stated she looked forward to working with her. Citizens' comments Margaret Anderson — stated she appreciated council's support. Council and administration response to citizens' comments Clark — reminded the public there were three families affected by the fire earlier in the week. He thanked the fire department and volunteers for their time. City of Seward, Alaska City Council Minutes May 10 2004 Volume 36, Page394 Branson — stated the City would not be paving Margaret Anderson's road. Adjournment The meeting was adjourned at 9:25 p.m. 4 is w City Clerk I Cvv�lC� �Cl��;� - Vanta Shafer Mayor �fUUfI1I1 (City Seal) PPS Rq j� . r 4 .. 00 0 a0� A �i9 l� OF City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36 Page 395 Call to order The May 24, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. New Council Member Margaret Anderson was sworn in. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Linda Amberg Margaret Anderson Willard Dunham Kevin Clark Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Erin Leaders, Assistant City Clerk Absent —None Special orders, presentations and reports Proclamations and Awards A proclamation was read to welcome the Rural Providers Conference and Melanie with Qutekcak received the proclamation on their behalf. A proclamation was read recognizing Nobody gets Hurt Month. Borough Assembly Report. Borough Assembly Representative Ron Long stated there would be a budget work session on Monday the 17 The work session would be continued on the 18' and then again on the regular meeting June 1St The borough had the first of two hearings that would enforce a Nikiski law enforcement area. They also had the first of two hearings on ordinance to change the sales tax cap from $500 to $1,000. City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36, Page 396 An ordinance was passed accepting $168,000.00 from the State of Alaska for decontamination units. The Kenai Borough authorized a lease with Seaview Community Center for the Flood Service Area Board. The Borough postponed designating a piece of Sterling Highway between Anchor Point and Skilak road as a scenic byway until July 6` In response to Dunham, Long reported one business sector in one community was opposed to the sales tax, there were a few positive testimonies and the next hearing would be on the 1 51 because they had to establish the budget and mill levy by the 1 5t City Manager's Report. City Manager Phil Shealy stated there would be a lay down with Resolution 2004 -61 for the Qutekcak Hatchery Agreement to replace pages 14 and 15 of the packet. The changes had been recommended by the City's attorneys. ➢ There would be a meeting regarding the Exit Glacier plan Wednesday May 26` and 7pm. The meeting would include the area plan, environmental assessment, and the general management plan and the public was encouraged to attend. Work on the Forest Acres Waterline Project would start on June 9` There would be a work session tomorrow at 6:00 pm. on the Small Boat Harbor. ➢ Shealy informed he would be on vacation June 8` through the 23` and Rick Gifford would be acting in his place. ➢ In response to several questions, Shealy reported Wilder had been testing rock in the quarry and the administration would attempt to reach an agreement between the City and Wilder. ➢ The City was hopeful the pavilions could be replaced with the waterfront planning money passed through to the Forest Service and Federal Park people. At this time there were no fund sources identified to replace the boardwalk or pavilion that was removed due to its hazardous condition. The funds for the waterfront planning would be available as soon as the DOT could release the funds passed through them and an agreement could be reached with the park people. The City had hoped an agreement could be met this season. ➢ Shealy confirmed the projects the Navy ship would be working on while in port would be to paint a building down town and/or work on establishing a new trail system for the Seward middle school. He stated it was not possible for the Navy ship to work on the boardwalk since we would not have the materials available to complete the work at that time. Shealy did not have a cost estimate to replace the boardwalk. Other Reports, Announcements and Presentations. Legislative Report. Representative Paul Seaton informed council and the public the legislature had created and funded a budget through a draw on the constitutional budget reserve. The governor would be calling the legislature back into special session. The House finance committee approved 13 amendments to the budget. One of those amendments was to approve City ofSeward, Alaska City Council Minutes May 24, 2004 Volume 36 Page 397 funding for the Seward recording office. The Quteckek Shellfish Hatchery was approved to be added as an amendment to the budget. There were two bond issues addressed, one for a revenue bond based on student loan corporations selling bonds to repay original money the state had put into the Student Loan Corporation. The money for that bond was to be used for a number of educational projects, one of which was to put fiber optics in Seward schools. The other bond was a general obligation bond for roads and harbors that had included a new travel lift for Seward and rebuild on the dock. There had been no source for funding to pay back revenue bonds so that did not go forward in the Senate. Seaton recommended the City of Seward look at both small and large projects that could be put into bonding packages instead of focusing solely on capitol improvement projects. He suggested the City assess its needs in different areas for bonding packages to move forward. The legislature may look at cruise ship head tax, tobacco tax and raw fish tax problems. They would also look at trucker's fees and early funding of education. The legislature had hoped to submit an education budget by the 4 day of session and planned to act on it by April 1St Chamber of Commerce Report. Chamber President Rick Blythe updated council on chamber activities. The chamber was looking for an architect to rebuild the Derby Booth and would like to extend the lease with the City. AVTEC agreed to build the new construction, the Chamber had hoped to have the materials donated and would seek a pro -bono architect to draft the plans. They met on the 17 with the city manager and marketing committee to discuss a marketing agreement. The Chamber had planned to get an agreement to the City by the end of August. The Chamber board voted to send a letter of support for the Sterling Highway Scenic Byway at the request of the City of Homer. The budget process with the City would start in July so the Chamber would have to have their budget completed by mid - August. The Chamber would be working on a project for branding, market research and creating ads that would portray our community. In response to Dunham, Blythe stated chamber planned to get rid of the railcar because the staffing and information were redundant to what the chamber office offered and it had cost them too much money with minimal benefit. Council Member Kevin Clark, informed Blythe he had attended the chamber luncheon Friday the 21 Clark stated Tom Tougass had reported Norwegian Cruise Lines announced they would be using the City of Seward as a port of call next year making ten stops here, Royal Caribbean indicated they would sign a 5 year contract with the Alaska Railroad and that Princess Cruise Lines would like to make Seward a port of call also. City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36, Page 398 PACAB Report. Council Member Willard Dunham gave a brief report on the PACAB work session and stated discussions were centered mostly on the harbor. Municipal Stranded Gas Report. Council Member Willard Dunham reported a resolution was passed at the last session that would need approval of affected local communities. The schedule called for June 11 ` June 24 July 9 and July 22 for presentations from all of the three primary applicants for stranded gas. The RCA would be attending. Seward City council would need to pass or fail a resolution regarding the Stranded Gas Act. Fish Restoration Meeting. Council Member Willard Dunham informed money had been paid and the committee would like hold some public meetings and hearings to discuss how to raise money to form a fish restoration fund used to enhance fisheries. The committee would like to see the fund not only for Silvers but for Kings and maybe branch out into the kid's pond for fishing. The committee had discussed bringing the chamber in to help with marketing red salmon. Historic Preservation Applicant Shannon Kovac gave a brief presentation. Tom Swann was not present. Citizens' comments on any subject except those items scheduled for public hearing. Ron Long thanked representative Seaton and Council for their efforts and congratulated Anderson on her city council seat. He reported the borough was working on a hazard mitigation plan and would have a work session in the upstairs conference room in City Hall this Thursday at 7 p.m. open for public comment. Approval of agenda and consent agenda Motion (Branson/Dunham) Approval of Agenda and Consent Agenda The following was moved to the regular agenda Appoint two applicants to the Historic Preservation Commission for terms to expire May 2007. Motion passed Unanimous The clerk read the following approved consent agenda items: Approve the regular city council meeting minutes for March 22, April 12, and April 26, 2004. Public hearings - None Unfinished business - None City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36 Page 399 New business Resolution 2004 -60, directing the Administration to explore the possibilities of expanding the city boundaries to annex adjacent areas surrounding the City of Seward and to encourage public input regarding a possible annexation by holding a public meeting in July. City Manager Phil Shealy stated the administration would move ahead with a study of annexation and present it at the meeting in July and would invite residents of the area to meet with the City and help them explore the matter. Motion (Branson /Dunham) Motion to Amend (Branson /Dunham) Approve Resolution 2004 -60 Amend Section 2 to add "and the Kenai Peninsula Borough administration & a representative from the City of Homer" at the end of the sentence. Amendment Passed Unanimous Shealy stated the work session should be scheduled for July 26` since there would be a council meeting that evening. Shafer felt the work session should be separate from council night because the discussion could take more than an hour. Anderson did not feel the City should wait until the week of July 26` to have a public meeting on annexation. Dunham felt annexation should be seriously looked at by the community so he wanted council to allow the administration enough time to research the subject before a work session would be scheduled. Branson felt with 4` of July and summer approaching, the week of July 26` would be the earliest annexation could be addressed. In response to Dunham, Shealy stated he would be returning from vacation June 24` which would leave little time for him to research annexation before July 12' Mayor Shafer stated she would like to see information in front of her regarding a potential increase in the cost for fire protection, police services etc. in the event of annexation. Shafer felt council would need to be fully informed before a public meeting on annexation was held. Valdatta stated there had not been clarification on the areas proposed for annexation. City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36, Page 400 Motion to Amend (Anderson / Amberg) Amend Section 2 to read "July 12th" instead of July 26` Amendment Failed Main Motion passed Council recessed at 9:03 pm Council resumed at 9:13 pm Yes: Amberg, Valdatta, Anderson No: Branson, Clark, Dunham, Shafer Unanimous Resolution 2004 -61, accepting a $150,000 grant from the office of the Governor of the State of Alaska for the support of the Qutekcak Shellfish Hatchery, authorizing the City Manager to enter into an agreement with the State of Alaska for the grant funds, authorizing the City Manager to enter into an agreement with Qutekcak Shellfish Hatchery to pass through the grant funds and appropriating the funds. Shealy stated the City had received an offer for the grant of $150,000 that would require $15,000 of the grant to be spent to complete a business plan by October 30` The City would be acting as a pass through agency to accept the grant. The City would not be allowed to charge any administrative cost against the grant. There was a lay down presented with amendments to the Qutekcak Shellfish Hatchery Agreement for council. Motion (Dunham/Branson) Approve Resolution 2004 -61 Dunham clarified council would be voting on resolution 2004 -61 with the revised lay down agreement in place of the agreement found on pages 14 & 15 in the council packet. Motion passed Unanimous Resolution 2004 -62, authorizing the City Manager to notify the Department of Transportation to use Section 115 funds for the Nash Road Rehabilitation Project. Shealy reported when he had visited the DOT in Juneau, they had informed him section 115 was money that in the past had been additional funds passed through the state to the municipalities. He informed there had been an article in the Anchorage Daily News explaining DOT would be docked for the monies that went to municipalities; therefore the DOT had decided cities should contribute that money to the state projects that would be funded in their area. The DOT confirmed in writing the City would have to take the federal money earmarked for Seward road projects and agree it would be used to cover the cost of completing the Nash Road project in order for the Nash Road Rehabilitation Project to proceed in a timely manner. The DOT had agreed to certain upgrades the City requested, primarily regarding drainage the city believed was necessary as part of the project. No local money would be involved with the Nash Road Project. City of Seward, Alaska City Council Minutes May 24, 2004 Volume 36 Page 401 Motion (Dunham/Branson) Approve Resolution 2004 -62 In response to questions, Shealy stated the money was part state money and part garby bonds. Nash Road would be a $3.3 million dollar project. The legislature approved $1.2 million for the project, but they would need the other federal money to round it out to complete the project to include the upgrades the City had requested. This resolution would take care of the Nash Road project. The 0 -8 mile project would be funded in another matter. The City would be shifting the $2 million dollars for Seward roads to a specific project, mainly the Nash Road Rehabilitation. The federal lighting would be on the 0 -8 mile project, not on Nash Road. Motion passed Other New Business Items Unanimous Approve the regular city council meeting minutes for March 22, April 12, and April 26 2004. Appoint two applicants to the historic preservation commission for terms to expire May 2007. Branson felt the historic preservation commission held too many meetings and needed to cut back to the minimum required meetings due to lack of staff. She stated the commission was only obligated to meet twice a year. Branson felt if they cut back the meetings to take place twice a year it would eliminate P &Z staff from having to do so much extra work. Council agreed to suspend the rules to allow Shannon Kovac to speak on behalf of the commission. Shannon Kovac, Seward Historic Preservation Commission Chairperson, stated the commission was required to meet at least two times a year and if they limited their meeting to twice a year they would be an inactive commission. Kovac felt they needed to meet more often than twice a year to keep up the historic events they have brought to Seward such as the Blast to the Past parade, the Fireside Tales and other events they had arranged. Kovac suggested a work session with council to discuss what they would like the Historic Preservation to be doing. Council unanimously agreed to appoint Tom Swann and Shannon Kovac to the Historic Preservation Commission. Discussion on the revised All- Hazard Mitigation Plan Mayor Shafer suggested community education on Tsunami warning sirens, she liked the idea of putting the notice on utility bills. This would have to be a continued education process, perhaps quarterly regarding the All Hazard Mitigation Plan. City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36, Page 402 Grace Thornton, Fire Department Administrative Clerk reported the Hazard Mitigation plan was not bound to the secondary evacuation plans submitted by the City of Seward Planning and Zoning Commission. She confirmed FEMA had to do final approval of amendments. The changes made to the All Hazard Mitigation Plan by P &Z were merely suggestions. In response to Dunham, Thornton stated they were federally mandated to put together a mitigation plan for hazards. If the City had a plan in writing they could seek more funding for projects such as flood mitigation. If there was no plan submitted to FEMA in writing, the City would only get a one time fund from FEMA in the event of a flood. In response to Valdatta, Thornton informed Valdatta she could identify his concerns about the tidal flats in the hazard mitigation plan, but his idea could be rejected by the Kenai Borough, FEMA or the State of Alaska. Informational items and reports - None Council comments Anderson congratulated the 2004 Seward High School graduates. She was thankful for the programs the City provides for the children of Seward. She felt the council should put their heads together to resolve how to rebuild the boardwalk. Council should make their position known before June on their position regarding the proposed increase of the Kenai Peninsula Borough sales tax cap. Clark recognized Tylan Shrock, Paul Carter and Tom Tougass for their work on the marketing committee for the City. Clark welcomed the public to attend the chamber marketing committee meetings the 1" and 3 rd Thursday of each week at the Chamber of Commerce. Amberg congratulated graduates. Branson requested someone else be appointed to the Planning and Zoning Liaison because she would be gone often this summer. Anderson- volunteered to take Margaret Branson's place as the P &Z Liaison. Council unanimously agreed to accept Anderson as Branson's replacement. Dunham reported there was a call from the Alaska Board of Fisheries to have nominations for the Salmon Restructuring panel. The panel of shareholders and participants would be responsible for their own travel expense. There would be a meeting on October 5 th -7 for work sessions. The Centennial Committee viewed a film called The First 100 Years of Seward's History The film had not yet been released to the public, but it would be a 52 minute film that Dunham felt would be good for the town. He shared that Lee Poleske, the museum director had spent hours working on the film project was in the hospital but doing well now. He also noted the marketing City Council Minutes City of Seward, Alaska May 24, 2004 Volume 36 Page 403 committee and PACAB would be working on a SWAT analysis for Seward. He encouraged council to review the SWAT analysis to make any revisions they may have. Shafer congratulated the graduates and their parents. She reported the Seward Head Start program would be closing and asked the city manager to look into the closure. The Head Start program in Seward was a federally funded program that served about 20 kids. She asked for council to contact RURAL cap to try and get the program re- implemented or for the City to apply for Federal grants to keep the Head Start program in Seward open. Citizens' comments - None Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 9:53 pm. Erin Leaders Acting City Clerk tftltq /1 (City Seal) F $E O� m • SEAL ' .•• ✓ • 45,E . GNE 1 �`�{ • ° ,/ rt� Vanta Shafer Mayor City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36 Page 404 Call to order The June 14, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Willard Dunham Linda Amberg Kevin Clark Margaret Anderson Bob Valdatta comprising a quorum of the Council; and Rick Gifford, Assistant City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent — Margaret Branson Special orders, presentations and reports Proclamations and Awards Present gavel to Mayor C. David Brossow for excellent leadership and dedicated service on the Seward City Council serving the people of Seward from October 2003 through April 2004. City Manager's Report. Assistant City Manager Rick Gifford gave his report. ➢ City Manager Phil Shealy was on vacation and would be back June 24. ➢ On June 8, the city and chamber staff met to plan and coordinate 4` of July events. ➢ Parks & Recreation reported they had 9 competitive teams and 5 recreational teams for the city softball league this year. The Teen and Youth Center had over 30 children at day camps, the Arbor Day trees were planted, parking lots were cleaned in the harbor and striping plans were 90% complete. City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36, Page 405 In response to questions, Gifford would look into the cost to repair the North dock, and what stage the North Forest Acres levee project was at. City Attorney's Report. City Attorney Cheryl Brooking was present and stated period 4/21 through 5/20/04 they had worked on drafting contracts, assisted with procurement financing, resolutions and ordinances, public records issues, administrative issues, business license, employment and contract issues, and some litigation issues. ➢ Ace Hardware litigation. After cross motions for summary judgment, an order was issued this week designating the City as the prevailing party. Jim Pruitt was ordered to pay civil penalties of $10 a day per violation or bring the building into compliance. In response to questions by Dunham, Brooking stated city equipment was damaged when a state triggered avalanche came down during avalanche control. This was done without city knowledge, and the City had paid for the repairs and had invoiced the state. The State had not reimbursed at this time. Chamber of Commerce Report. President Rick Blythe announced an offer went out and was accepted today by Laura Cloward, as the new Chamber Director. She would move to Seward in a couple of weeks and start work July 6. The marketing agreement between the Chamber and the City was in draft form # 2. It was designed to be a 5 -year agreement with yearly addendums, and would be ready for the 2005 budget season. Blythe explained financial statements that he passed out through May 31, 2004. School Board Report. Sandy Wassilie stated summer school had begun with an enrollment of 500 district -wide. At the June 7` meeting the FY 05 budget revision was passed based on the Governor signing what the legislature added. ➢ The Board also passed an amendment to the administrations budget to reduce the contingency fund, thus increasing the number of teachers by 8 at the High school, Middle school and small school level. Wassilie also stated the administration had added back 11 positions for the elementary level. ➢ With a reduction of $200,000, the board kept the co- curricular for one more year with a budget of 1.2 million. ➢ Weighted grades were passed. Wassilie voted against for various reasons. ➢ Changes were passed for the Middle School and High school handbooks. The chief change was the addition of language regarding alcohol and drug policies which would result in a student athlete being suspended from the sport for 30 days. City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36 Page 406 ➢ Assistant Superintendent Gary Whitely was leaving and would be replaced by Guy Fischer. ➢ Beginning the fiscal year July 1, School Board meetings would begin at 7:00 pm instead of 7:30 pm. hi response to Shafer, Wassilie said distance delivery infrastructure was slated to go in with the new school, and a fiber optic system would provide access to advanced placement classes. In response to Dunham, Wassilie stated the school board was quasi-judicial. It would be improper for them to be involved with unhappy parents. The process began by going to the superintendent, then filing a grievance after the superintendent. The Board was the last process. Other Reports, Announcements and Presentations. Presentation on the Fish Restoration Program by Department of Fish and Game. The data disseminated provided a conservative estimate of the economic benefit provided by the Fish & Game hatcheries through sport fish stocking. Motion (Valdatta) Suspend the rules to allow Tim McDonald a member of the public, to engage in conversation and ask questions of the speaker. Motion Failed Lack of a second. Citizens' comments on any subject except those items scheduled for public hearing. Tim McDonald, spoke in favor of annexation although not sure if it was viable. He felt the outlying citizens should be allowed to vote. He also thought there was an extreme crisis of confidence and that citizens did not believe in the city. He cited red ink of bad fiscal policy, money spent on Kawabe Park, and pavilions torn down without need. Gary Ackerson, spoke in support of bike racing and the Lions Club. He hoped to get support to put a track in Seward. Ackerson said it was exciting to see families and all the children attending. He had found over 300 kids racing at other areas with safety gear on from boots to goggles. He felt it was an alcohol free event and a wonderful family sport. Cole Peterson spoke in support for sport racing. He mentioned the sno -cross event in February brought in over 300 people to Seward, and these type of events usually fill up the Sullivan Arena. P &Z liaison report given by Margaret Anderson City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36, Page 407 PACAB liaison report and a Stranded Gas Meeting Update given by Willard Dunham. Approval of agenda and consent agenda The following was added to the consent agenda: Resolution 2004 -66, authorizing the city manager to enter into a maintenance agreement with the State of Alaska to maintain and pay for the energy for new street lights to be installed on Third Avenue between Railway and Hemlock Streets. Resolution 2004 -68, authorizing the City Manager to enter into a mutual aid agreement between the City of Seward and Moose Pass Volunteer Fire Company for the purpose of fire fighting and rescue operations. Resolution 2004 -71, recommending the Kenai Peninsula Borough purchase of the additional eight acres of land to the west of the new Seward Middle School located on U.S.S. 1864 KPB replat, tract A. Motion (Dunham/Amberg) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -64, supporting the Municipal Advisory Group Resolution 2004 -01 and clarifying the City of Seward's position in regards to the Stranded Gas Development Act. Resolution 2004 -65, accepting FY 2004 Homeland Security Law Enforcement Terrorism Prevention Program (LETPP) Grant in the amount of $121,000 and appropriating funds. Resolution 2004 -66, authorizing the city manager to enter into a maintenance agreement with the State of Alaska to maintain and pay for the energy for new street lights to be installed on Third Avenue between Railway and Hemlock Streets. Resolution 2004 -67, authorizing the discharge of fireworks by the Chamber of Commerce during the 2004 Independence Day Celebration. Resolution 2004 -68, authorizing the City Manager to enter into a mutual aid agreement between the City of Seward and Moose Pass Volunteer Fire Company for the purpose of fire fighting and rescue operations. Resolution 2004 -70, accepting FY2004 Alaska Police Standards Council Grant in the amount of $5,000 and appropriating funds. City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36 Page 408 Resolution 2004 -71, recommending the Kenai Peninsula Borough purchase of the additional eight acres of land to the west of the new Seward Middle School located on U.S.S. 1864 KPB replat, tract A. Approval of the May 10, 2004 regular city council meeting minutes. Public hearings None Unfinished business - None New business Resolution 2004 -63, authorizing the city manager to enter into a contract with Swenson Construction to remodel the police department dispatch area (including mitigation of asbestos in the area) to accept the new dispatch console for the new radio system, relocate some walls, and provide some additional changes to the dispatch area , at a price not to exceed $83,111.00. Gifford reminded that the Seward police department were awarded three grants in the amount of $867,550.00 for the procurement and installation of a new radio system to replace the rapidly failing current system. Swenson came in as the low bidder at $83,111.00 and he recommended approval to enter into a contract to remodel the dispatch center Motion (Dunham/Anderson) Approve Resolution 2004 -63 Clark disclosed a possible conflict as a contractor. Mayor Shafer ruled a conflict existed. Clark abstained from discussion and voting. Motion passed Yes: Valdatta, Dunham, Anderson, Amberg, Shafer Abstain: Clark Resolution 2004 69, authorizing the city manager to enter into a rock removal agreement with Wilder for use of the City of Seward's Fourth of July Creek rock quarry. Gifford reiterated past history and maintenance of the rock quarry. It had been the desire to have a long -term operator in the quarry, but all inspecting contractors had been put off by the 170,000 cubic yards of unclassified rock material that inhibited efficient use of the quarry. This material needed to be removed first before the City could have cost effective use of the quarry. It would cost about $425,000 to classify and stockpile the material. Wilder had expressed interest in using the quarry to construct the new breakwater, but had reservations because of the huge stockpile. A mutual agreement for use had been reached where production credits equal to the amount of rock extracted from the quarry would be used on a ton - for -ton basis at $5 a cubic yard. Wilder had agreed to stockpile and classify for the city's use. This cleaned up the quarry for future use and made it a City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36, Page 409 more marketable and manageable asset. Gifford noted this agreement had been reviewed by the city attorney. The contracting officer would be the city manager in the signed contract. Motion (Dunham/Valdatta) Approve Resolution 2004 -69 In response to Anderson and Clark, Gifford stated the rock would be classified and stockpiled by the size, and Wilder would clean up the pile in exchange for the rock they purchased. After their use, the City would then have rock of value to sell. Harbormaster Jim Beckham stated the intent was to provide an equal amount of rock for the project. No cash would exchange hands. Wilder would get rid of the unclassified pile, classify them, and provide better access to remove and stockpile the rock, provided on a ton - for -ton credit. In response to Valdatta, Beckham stated the contract allowed them to produce the rock. Old rock from the harbor area would be re -used. Motion passed Unanimous Resolution 2004 -72, authorizing payment in the amount of $54,350 to the Seward Chamber of Commerce for providing marketing services on behalf of the community, representing the second half of the amount budgeted for marketing in 2004, based on 50% of the tax collected in 2002. Gifford stated this was the second half of the bed tax collected in 2002, and turned council's attention to the new set of financials provided by the Chamber. He recommended approval. Motion (Dunham/Amberg) Approve Resolution 2004 -72 Anderson clarified that this was not a City of Seward implemented bed tax, but a voter initiative enacted bed tax. She thought it may be time to increase the bed tax. Clark pointed out that many citizens thought that 100% of the bed tax was to go towards marketing, and he hoped this agreement would not be tied to the bed tax, but be for actual services, thus taking the controversy out of the issue. Dunham agreed the voters had implemented it, but did not understand why this was done in two pieces. Shafer remembered the Chamber had asked for it to be handled this way, so they could provide accountability to council's desire. Anderson re- emphasized it was a voter initiative enacted bed tax. She explained they had gone through this process twice. The first time voters dedicated a percentage of funds for the visitor City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36 Page 410 industry which was thrown out by the courts because you weren't allowed to dedicate public funds. It was to be budgeted each year. She hoped this agreement would set the amount each year. Motion passed Unanimous Council Recessed at 9:00 pm Council reconvened at 9:10 pm Resolution 2004 -73, authorizing the expenditure of $13,425, for the purchase of electrical wire from Western States Electric, to be reimbursed by Safeway as part of their electrical job order. Gifford stated construction at Safeway should be started before July 1, and they needed to purchase 75 feet of electrical wire. Received four quotes and recommended approval of the low bid. Motion (Valdatta /Amberg) Approve Resolution 2004 -73 Manager of Engineering Dave Calvert stated all poles in the alley would be removed and underground lines put in, but the big transformers would still be located out front. Safeway had already paid $16,000 for this job. Motion passed Unanimous Resolution 2004 -74, naming the pocket park located on city -owned property on Fourth Avenue, Larry Urbach Park. Gifford stated Urbach's Clothier had been here since 1950. Larry had been a civic community leader, and his family supported the Adopt -a -Park program. They added decorative benches last year, and wished this park re -named in Larry Urbach's honor. Motion (Anderson/Dunham) Approve Resolution 2004 -74 Dunham expressed that Larry Urbach was a community supporter and a very fine pioneer. Anderson stated Larry served on the council for years and that Pat Williams' was Larry's teacher years ago. Motion passed Unanimous City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36, Page 411 Other New Business Items Discussion on establishing a fish restoration program. Dunham thought fish restoration could be administered by the city with a line item in the budget, but funds actually came from the community. A procedure was needed for salmon enhancement for the future. An Ad -Hoc Committee had been working on this and discussed fund raising ideas like raising business license fees with so much donated towards restoration, possibly a fish stamp for boats in the harbor or an assessment of charter boats. Dunham believed the city could offer an easy pass -over of funds. The Director of Cook Inlet stated they would meet and work out a long range delivery agreement for the smolt and hoped to look at three species of salmon. Valdatta commented Fed Ex was a company that made a lot of money on shipping fish. Council gave direction to the administration to work with the Ad -Hoc Committee to produce a plan to raise fish restoration money before budget time. Discuss sending Mayor Shafer to Seattle to meet with Holland America to discuss Seward as a destination and to request Princess consider Seward as a Port of Call. Shafer had been attending marketing meetings and may go with a group of marketing committee citizens with a port of call package to Seattle in the near future and visit with Holland America. Valdatta indicated it may be a good idea to involve the railroad. Council unanimously agreed the Mayor should attend if possible. Give direction to administration to explore an agreement with Seward Lions Racing Club for 12 acres of land at SMIC to use as a racetrack. Council wished to make this happen. City Attorney Cheryl Brooking stated there would be zoning changes that would need to occur. Council gave direction to proceed with exploring an agreement with the Lions Club for a Race Club area at SMIC. A work session was scheduled for June 28 at 6:30 pm to discuss the conference center as part of the multi- agency project. Discussion ensued on an alternate location for the antique car show July 17. City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36 Page 412 Gifford stated NAPA initially wanted the whole parking lot on July 17 which was one of the City's busiest weekends. With the East harbor lot being used for construction staging, that put additional stress on the area. Had sought additional parking with Suneel, the Railroad, Sealife Center parking lot, High school parking lot, and opening up Boulder Stadium. A recent meeting with Tim Brooks from NAPA indicated maybe only half could be used, and they would meet tomorrow and discuss alternative sites. Council wanted the administration to help make this happen for NAPA, even if it required using half of the lot. Council unanimously approved Yeosu City Korea's invitation to the " Yeosu International Youth Festival" and directed the clerk to send a letter of intent authorizing 5 citizens to attend. Informational items and reports — Hospital Financial Report for April 2004. Report on All- Hazard Mitigation Plan. Council comments Anderson mentioned that DVDs would be for sale on Flag Day, July 9th at the school auditorium for the premier of "Seward's First 100 Years." Clark called attention to the fact that the cost of Kawabe Park was closer to $592,000 than the $800,000 that was quoted by a citizen during Citizens Comments earlier. Amberg stated her new truck was not her son's. Valdatta thanked the Public Works crew for their hard work sweeping streets and admonished the citizens to please pick up their clippings from the street gutters. Dunham appreciated Anne Castellina and would miss her. He too thanked Public Works for the sidewalk and striping. He requested a resolution for the Flag Day and Benny Benson. Shafer received a formal letter that the Head Start program would be shut down this year and felt sad about that. She hoped other sources of funding could be found to resurrect this program next year. She was also looking forward to the 4 of July. City of Seward, Alaska City Council Minutes June 14, 2004 Volume 36, Page 413 Citizens' comments Tim McDonald, concurred on giving land at SMIC to the Lions Club for a track and noted it did not have to be a permanent situation. He stated silvers released this year would not return until 2 years from now, and would not be ready for next years 50 "' birthday of the Salmon Derby. He was concerned for the wild stocks. He pointed out there was no signage that guided people to the new sidewalk or traffic control by the cruise ship dock, and questioned if the city was capable of managing the conference center. Rick Blythe, commented sometimes it was helpful to not have the Railroad attend so Holland America could talk freely. He reiterated that the 10% design document would show the city -owned cost of the multi- agency conference center. The Chamber had expressed willingness to participate in that also. The committee and Chamber wanted open discussion on this topic. A representative from the Chamber greeted the tour ships and handed out maps. He thought it was good to support Korea to broaden trade issues. Council and administration response to citizens' comments Shafer toured the USS Howard along with council members Amberg and Dunham. The commander was very happy with Seward and was tickled how his crew was treated. He thanked the American Legion for offering them dinner. Adjournment The meeting was adjourned at 10:29 p.m. J Jean Lewis City ° Clerk of seh, (City Seal) ,,eve ,,�< �� ' ' �9 ®: SPI. :s —o-- j � o Ae P N 'veil � Vanta Shafer Mayor City of Seward, Alaska City Council Minutes June 28, 2004 volume 36 Page 414 Call to order The June 28, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Sgt. Valadez led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Linda Amberg Margaret Anderson Willard Dunham Kevin Clark Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent —None Special orders, presentations and reports Proclamations and Awards Alaska Flag Day Proclamation read announcing the premiere showing of Seward's One Hundred Years on July 9, 2004 to honor Benny Benson's contribution to Seward's history. City Manager's Report. City Manager Phil Shealy gave his report. ➢ The 50 -ton travelift was back in operation. The City had conducted 300 -350 lifts a year with that machine. This machine generated $80- $90,000 of income, with expenses of $125,000 a year. With current fees charged, the travelift loses money, but had always provided a service to support the local marine facilities. Shealy noted travelifts in some cities were privately owned and operated. He stated this lift was aging and a new lift would cost around $200,000 plus $75,000 worth of needed dock work, and eventually in the near future, the city would have to decide whether to continue to provide this service. The motor pool fund currently had $24,000 generated toward the replacement. City of Seward, Alaska City Council Minutes June 28, 2004 Volume 36, Page 415 ➢ Portico would be in Seward Wednesday, July 7, with a presentation at the IMS Rae Building from 7 -9:00 pm. The public was invited. ➢ DOT notified the Nash Rd. project would be advertised in October for reconstruction next year, and the 0 -8 mile project would go to construction next year also. ➢ Three cruise ships would be in town on Wednesday all at one time. ➢ Shealy requested a work session be scheduled to discuss business licenses. Administrative hearings were currently being scheduled, and he needed possible guidance. In response to council questions, Shealy stated the Growth Company wanted 50% payment today, and a report should be coming soon on their job re- classification assessment. He would also speak with DOT on the speed limit by the three bridges being lowered to 35 mph. Other Reports, Announcements and Presentations. Requested Seward participate in a "Bear Safe Community" presented by Larry Lewis, Department of Fish and Game. Presentation by Architect Gary Peterson on the New City Shop Concept and Design. Citizens' comments on any subject except those items scheduled for public hearing. Patty Barnes wanted to know what areas were being annexed in the Bear Lake area. She was advised of the upcoming work session and told that was an unknown so far. Marilyn Sutherland, spoke in favor of Resolution 2004 -75. She pointed out there were a number of Seward structures on the national historic register and hoped the Jesse Lee Home could be restored. Sutherland thought promoting the preservation of Seward's history was a benefit to residents and visitors alike. She thanked the commission and council for their foresight on historic issues for the community. Tylan Schrock, coined a new term of `nimby' (not in my back yard), and spoke in opposition to the North Forest Acres levee and road project. He did not know why the plan had changed but the Corps was now going to let the water go through the levee. He asked council to find an opportunity to get the creek alignment that the citizens' had originally asked for. Since this levee would be within 150 -200 feet of homes, he wanted the City to build the right project. Approval of agenda and consent agenda Motion (Anderson/Dunham) Approval of Agenda and Consent Agenda City of Seward, Alaska City Council Minutes June 28, 2004 Volume 36 Page 416 The following was added to the agenda: Discuss the multi- agency conference center. Schedule a work session to talk about general city business license issues. Motion passed Unanimous The clerk read the following approved consent agenda items: The May 24, 2004 regular city council meeting minutes were approved. Council took a 10- minute recess at 9:00 pm. Council resumed at 9:10 pm Public hearings - None Unfinished business - None New business Resolution 2004 -75, approving Historic Preservation Commission Priorities. Shealy stated this resolution identified public outreach, historic structures and sites, and historic preservation plans. He hoped establishing these priorities would consolidate staff time. Motion (Dunham/Clark) Approve Resolution 2004 -75 Branson thought the Commission did a great job but did not think their minutes should be recorded. She stated the staff time and paper used to prepare the packets were substantial, and suggested a commission member could take over that task to minimize the impact on staff. Anderson thought what they had done was wonderful, but had to agree with Council member Branson. She thought it was throwing good money over bad on the Jesse Lee Home and felt that it would be more viable to tear it down and start over. Clark informed that staff did not have time to put together the Comprehensive Plan, but yet were being used heavily for historical issues. City Planner Malcolm Brown described their primary duties and stated they were trying to get federal funding for the Jesse Lee Home. City of Seward, Alaska City Council Minutes June 28, 2004 Volume 36, Page 417 Shafer thought possibly a grant writer could be contracted out to pull some of the work away from staff, and requested that any resolution come to council well in advance for the next "Blast from the Past" event. Dunham was in favor and supported the preservation of Seward's history but also was concerned about staff time. He thought the commission could seek a VISTA employee to help with staffing issues. Motion (Branson /Anderson) Postpone to the July 26 council meeting to narrow the focus. Motion passed Unanimous Resolution 2004 -76, authorizing the city manager to enter into a contract with Metalcraft Marine, Inc. to construct a fire /rescue /security vessel for an amount not to exceed $244,761. Shealy informed the fire rescue vessel was submitted as a legislative priority last year and the City had been awarded $257,000 this year for that vessel. With administrative fees, a balance of over $244,000 was left to purchase the vessel. Two proposals from the RFP's met the minimum qualifications. He recommended the vessel purchase contract be awarded to Metalcraft Marine Inc. Motion (Dunham/Amberg) Approve Resolution 2004 -76 Fire Chief David Squires stated the contract price was in U.S. dollars, and he foresaw all certified city personnel would operate the vessel. Jurisdiction would be to the head of the bay. Towing operations or capabilities would stay with the harbor personnel. This boat was not big enough to tow much. After the contract was signed, this vessel would be expected to arrive in time to be a Christmas present. In response to questions by Clark, Squires reported he had sought aid from harbor personnel, the coast guard auxiliary, and other fire departments in deciding what qualifications were needed. Squires wanted to bring to council's attention the fiscal note that this vessel was not in the motor pool fund. He made an omission and did not plan for money to be set aside for that. $12,300 was the estimated annual operating budget. Squires expected to be under budget on that. $21,500 would have to be added to the annual budget to replace this vessel after 15 years. He stressed that the Fire Department had a long history of maintaining their equipment and hoped to fund a replacement in the motor pool fund. Motion passed Unanimous Other New Business Items City of Seward, Alaska City Council Minutes June 28, 2004 volume 36 Page 418 A work session was scheduled for Tuesday, July 13 at 7:00 p.m. on the East Harbor Expansion. A work session was scheduled for Tuesday, July 27, at 7:00 p.m. on Annexation. A work session was scheduled for July 12, 2004 from 5:45 p.m. to 7:15 p.m. for the 2004 Comprehensive Annual Financial Report Presentation. Discussion and direction given to administration on proceeding with city shop relocation plans. Shealy established the next issues would be identifying the lot, surveying the existing shop site, and getting an analysis of the proposed location. This would probably exceed $10,000, so would be brought back as a resolution authorizing the expenditure. If the project was awarded by next year there would be a considerable savings. The architect would have to get the concept design ready for bid. Manager of Engineering Dave Calvert wanted to move forward. A resolution could be brought forward with a number of professional services listed. He wanted council to focus on the location in Forest Acres, and not talk of putting it elsewhere. He felt that would kill the project. Clark was adamantly opposed to the location. He stated it was industrial use in a residential area. Clark listed other prime projects that had to go forward also, and felt money must be identified before it was spent. Valdatta agreed with Clark. He thought the new shop should go on different property. Dunham questioned if the state had been contacted, why the fire station was not included in the concept design, and what the status was on the bowling alley. Shafer wanted to authorize the money for the property issues first and go from there. Amberg stated council did give direction to move on this re- location. She thought this location was best. She wanted to know the value of the property on 6 avenue, and proceed with that. Anderson agreed the land on 6th Avenue should be appraised now to determine the value. She thought getting this property on the tax roles was a good idea. Shealy would obtain an appraisal to determine the value of both the Forest Acres/Hemlock and the 6th Avenue properties. He would also address concerns on pollution issues on 6 Avenue, and water concerns on the Forest Acres/Hemlock property. Discussion of the multi- agency conference center. City of Seward, Alaska City Council Minutes June 28, 2004 Volume 36, Page 419 Council unanimously requested the administration take an active and lead role pursuing and help develop the plan for the Multi- Agency Conference Center. A work session was scheduled for Monday July 26, at 6:30 p.m. to talk about general city business license issues. Informational items and reports — None Council comments Anderson, Amberg and Valdatta wished everyone a safe 4` of July weekend. Clark wanted the public to appear for the multi- agency conference center meeting with Portico. Branson wished Jim Beckham well on his new job. Dunham announced Dr. Warren Huss would be retiring from his dentistry practice after 35 years. He stated the Huss family came to our city, had been an excellent asset, would be greatly missed, and he personally thanked them for all the years of service. Dunham said the sidewalk at the Senior Center was sinking and either the State or City needed to fix it. Shafer stated staff members from Senator's Murkowski and Stevens' office were recently shown the shipyard across the bay and the Lowell Creek tunnel. The city was trying to get the Corps of Engineers to take back the responsibility of the tunnel because of constant maintenance resulting from initial design flaws. She too wished the citizens a happy and safe 4` of July holiday. Citizens' comments Carol Griswold, had just realized the new city shop would incorporate the entire campground. She encouraged the public to speak out if they liked the campground. She stressed the campground and green space was a valuable asset and a buffer from the highway for the Forest Acres residents. Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 10:10 pm. �000WWWWM Jeantewis City'Clerk a d (City Seal) 0 k CA Vanta Shafer Mayor City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36 Page 420 Call to order The July 12, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice -Mayor Willard Dunham. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present Willard Dunham presiding, and Margaret Branson Linda Amberg Kevin Clark Margaret Anderson Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — Mayor, Vanta Shafer Special orders, presentations and reports Proclamations and Awards Appreciation letter read for Dr. Warren and Mary Huss. Letter of appreciation for 4th of July volunteers. Proclamation for top 3 Mt Marathon runners. Borough Assembly Report. Borough Assembly Representative Ron Long gave an update on the last four meetings. He appreciated the support to raise the maximum tax amount changed from $500 to $1,000, but that vote failed 5 -4. There was a reconsideration meeting held, and the vote was 4 -4, so therefore failed again. Long stated this put the Assembly in a dilemma to fill a fiscal gap. The administration recommended raising the mill rate to 6.8 %, which could have raised about 2/3 of the amount needed. The Assembly voted against the mill rate increase, which failed 5- 4, keeping the mill rate at 6.5 %. The balance needed was ultimately taken out of the fund reserve. Long felt the Borough would be faced with the same fiscal gap next year. He stated if the exemption City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36, Page 421 on real property tax proposed which raised the exemption limit from $10,000 to $20,000 were to pass, that would create an additional $950,000 hole to fill in the budget next year. Long further commented there had been circular discussion on whether to accept about $750,000 of homeland security money for the communication system. This would piggyback onto a state contract that sole - sourced to Motorola as the supplier. The state's project would now be held up while the Borough sent their portion out to bid. He stated there was also contentious discussion over the designation of a portion of the Sterling highway as a scenic highway, and the collective bargaining unit agreement ultimately passed. Lastly, an ordinance was introduced to put to vote, adopting a city manager form of government. Long stated he seldom spoke against an ordinance being introduced but did on this one. Petitioners had gathered signatures to carry the issue to a ballot, which failed because of technical reasons. The Assembly introduced this ordinance to take it to a vote, and he felt a move from a Mayor form of government to a Manager form of government should come from the citizens. In response to questions by council, Long stated the old school may be destroyed because of non - compliant issues, but thought the Borough was still entertaining any offers. He also responded that the budget reserve was 21 million two years ago, and was down to 11 million this year. Borough policy described a comfortable level to be between 12 -16 million in reserves. City Manager's Report. City Manager Phil Shealy stated the attorney would be present for the next meeting and would give a report on the setback ordinance and an update on the noise ordinance. ➢ The architect had saved $400,000 on the new city shop relocation, and provided a handout. ➢ Shealy informed of the East Harbor expansion work session which would be tomorrow, and another handout was provided. ➢ An elevator company would come to town to evaluate the Senior Citizen elevator that was broken. ➢ Another handout was passed around which was a report the engineers would discuss with council at the work session on the 3 rd Avenue waterline, and was requesting that work session be held at noon in a day or two. ➢ Scott Ransom was appointed the new harbormaster as of today, and a position notification would be posted in -house for the Deputy position. Other Reports, Announcements and Presentations City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36 Page 422 Port and Commerce Advisory Board applicants: Deborah Altermatt was present and stated the Seward's first 100 years video was dynamic, and economic development was still premier for PACAB. She stated this Board was full of movers and shakers, and requested to be put back on the board for another term. P &Z liaison report by Margaret Anderson. Council member Anderson had attended the July W h P &Z meeting and had reported on plans to move the city shop. The Commission had queried when the council would proceed with the ordinance on industrial setbacks that they had approved in February. She would have information from Kachemak Heritage Land Trust sent to the City Manager to review for possible Railroad purchase of easements for protected inter -tidal zones. A replat of original townsite of Seward, Fike Addition on 4` Avenue was being sent to the Kenai Peninsula Borough for approval. She felt there was some inconsistency with enforcement on zoning issues. 2004 Comprehensive Annual Finance Report by John Bost of Mikunda, Cottrell & Co. Citizens' comments on any subject except those items scheduled for public hearing. Bill Hearn, hoped a new conference center would not take from other conference centers in the City. Two of the three locations showed building across Washington Street, which he was opposed to. Keith Campbell, stressed there was one more devastating thing coming to Seward and that was the building of the Knik Arm Bridge. He thought it could have unintended consequences for downtown Seward if industry like the Railroad and coal moved there. He urged council to look at these clouds on the horizon and plan for those eventualities. Tylan Schrock, supported the conference center Resolution 2004 -77. He felt it was time to step up and go forward. The impact of revitalization to downtown was important and this would offer an economic boon for the shoulder and off - season. Both Hotel Edgewater and the Sealife Center were the biggest supporters of this conference center. Schrock thought this was the most viable plan to locate a conference center in Seward. Dorene Lorenz, felt this conference center would create economic overflow that would run through the city. It was a needed resource and facility for the community, and had been 100 years in the making. Steve Schafer, stated there had been rumors on the Forest Acres levee dike. He thought it should be moved as far north as possible, and that Japanese Creek needed to be on the outside of the dike. Dale Hoogland, stated citizens in Forest Ares had always wanted the dike to go as far north as possible to no avail. He urged council to have a backbone, stand up to the agencies, and tell them City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36, Page 423 to build it further north. He also requested any work session be set with enough time for public attendance. Dale Hoogland, agreed on the need for a new city shop, but thought council was fast - balling the project. He stated the city did not have 4.2 million dollars and thought council should vote on it before spending any more money on it. Tylan Schrock, wanted Skip Barber present for the work session on the levee, and requested it be scheduled over three days from now. He thought this project balanced wetlands, fish, children and public safety, and that the social aspects of the project had not been evaluated. Rules suspended to allow more time. Unanimous consent He stated this levee road would be 100 feet from his house with big dump trucks going down it. He wanted the city to force the dike further north. Approval of agenda and consent agenda Motion (Branson /Amberg) Motion passed Approval of Agenda and Consent Agenda Unanimous The following was added to the agenda: Schedule a work session on the Forest Acres levee project. The clerk read the following approved consent agenda items: The June 14 and June 28, 2004 regular city council meeting minutes were approved. Non - objection to a request for a new liquor license for Nachobad LLC, dba Railway Cantina. Public hearings - None Unfinished business - None New business Resolution 2004 -77, in support of the Multi- agency Conference Center and development of the Seward Conference Center within this project. (Substitute) Shealy stated he had a substitute version before council. He gave a brief background history that the federal government had explored development of a combined facility housing several City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36 Page 424 agencies, and a Seward Waterfront Committee was formed. A joint study with Portico explored various sites, downtown revitalization, and community input. A consensus emerged supporting the town center, and on 9/22/03 council passed a resolution supporting concept 3. This resolution was needed to show support for the plan and directed administration to take a lead role in helping develop the plan. Motion (Branson /Anderson) Amendment (Branson /Anderson) Approve Resolution 2004 -77 In the 5` Whereas, substitute the words "a" in place of "the most" and substitute "are to" in place of "will ". Also eliminate the 6th Whereas entirely. Amendment Passed Amendment (Anderson / Amberg) Amendment Passed Main Motion Passed Unanimous Replace Section 3 with a sentence to read: "The Conference Center must become a self - sustaining facility, operated under an appropriate management agreement to be determined." Yes: Valdatta, Amberg, Dunham, Anderson, Branson No: Clark Unanimous Resolution 2004 -78, determining that it is in the public's interest to waive the normal bid process per city code 6.10.130 and authorize the city manager to purchase electric utility poles for an amount not -to- exceed $23,447. Motion (Valdatta/Branson) Approve Resolution 2004 -78 Shealy stated the need to order the utility poles. He stated due to special material, they did not go through a formal RFP process. They requested quotes or bids from 5 vendors with two responding. None of those vendors were within the city of Seward. Motion passed Unanimous Other New Business Items Two members, Deborah Altermatt and Karl VanBurkirk, were appointed to fill a portion of the three Port and Commerce Advisory Board vacancies for a term to expire February 2007. The clerk would re- advertise for the last vacancy. City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36, Page 425 A work session on the 3rd Avenue waterline was scheduled for Thursday, July 15 at noon. A work session was tentatively set for the week of July 28 on the Forest Acres Levee Project. Informational items and reports — Professional Development level 3 awarded to City Clerk Jean Lewis. Council comments Branson congratulated City Clerk Jean Lewis on her professional development certificate. Anderson also congratulated Lewis on her certification. She gave kudos to the Chamber and the City on the success of 4"' of July, and to Cedar Petrosius for her win. She stated Seward's 100 years video was great. Anderson also visited the city shop and thought it was a disaster waiting to happen and it needed to be replaced. She was saddened by the loss of Leslie Simutis. Leslie had contributed a lot to the community. Valdatta stated in his opinion, there should be a bridge across the inlet from Kenai before the Knik Bridge. He thought possibly a letter to the Borough supporting a bridge from Kenai would be proper. Amberg congratulated Lewis and Scott Ransom on his appointment as Harbormaster. She thought it was a great 4` and was looking forward to next year. Dunham thanked Treadwell and the Millennium Society for bringing Buzz Aldrin to town. Aldrin spoke to about 500 people while he was here and was a very interesting individual. Dunham stated the Millennium Society donated scholarships for 1,000 Anchorage 5 d ' graders to go to the Sealife Center this fall. He thanked Cathy Gonzalez and her dance group for stepping up to Korea's invitation. Citizens' comments Ron Long, thanked council on renewing a relationship with Yeosu City, Korea. He had went years ago to Korea as a friendship committee. He thought the Koreans were instrumental in keeping the coal facility in Seward and urged council to continue the relationship. Tylan Schrock, hoped every student in Alaska would be able to go to the Sealife Center eventually. He expressed it would take political will to do the right thing for the citizens of Seward on the Forest Acres levee, and urged council to get congressional involvement. City of Seward, Alaska City Council Minutes July 12, 2004 Volume 36 Page 426 Deb Altermatt, thanked council for the reappointment. She hoped to have a great year ahead and looked forward to the appointment of Scott Ransom as the new harbormaster. They would be working on an economic development and SMIC development plan. Dale Hoogland agreed with Margaret Anderson on the sad shape of the city shop, but did not think it should go in that area. The area was a lowland area, and the ideal place would be next to the levee road once it was built. He thought possibly the fire station could go there also, but did not think it was a good idea that offices be in the same building. Hoogland thought it was important to have safety vehicles on the north side of the lagoon. He thought money could be saved by creative financing or having a private developer build it. Council and administration response to citizens' comments Branson commented the city shop relocation was not being pushed through, it had been years in the making. She stated the shop was a disaster and money had been found. She advised council was exploring all options now, was not on a fast track, and had not given an OK on any plans as yet. Branson established that the city was getting property appraisals at this point, and the city could not afford to let things deteriorate further, especially if substantial funds to build it may be available. Anderson appreciated Mr. Hoogland's comments and thanked him for coming forth with ideas. She thought there was better use for the property where the shop was located now. Valdatta asked if anybody from those agencies had ever walked the levee site. Adjournment The meeting was adjourned at 9:10 p.m. Jean Lewis City�Clerk (City Seal) ,as��:o uiedd<d F r ° A� $® w M s g HI � 1 ZZ II k ard Dunham Vice Mayor City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36 Page427 Call to order The July 26, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Linda Amberg Margaret Anderson Kevin Clark Willard Dunham Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Erin Leaders, Assistant City Clerk Cheryl Brooking City Attorney Absent —None Special orders, presentations and reports Proclamations and Awards Proclamation read and presented introducing the 2004 Seward and Obihiro Sister -City Exchange Students. Proclamation read for National Coast Guard Day. Student Exchange participants Tomone Hoksokawa, Haruka Yagashi, Norikio Togashi, Christopher Sarka and Loranne Bardarson each gave a brief speech thanking council for the opportunity to participate in the student exchange program. The Japanese exchange students gave their presentation in English. Borough Assembly Report. Borough Assembly Representative Ron Long - not present City Manager's Report. City Manager Phil Shealy reported the police department recently hired Matthew Armstrong as the new replacement patrol officer bringing the police City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36, Page428 department to full force. Mr. Matthews currently supervised cruise ship security in both Seward and Whittier and would begin working for the City of Seward August 9, 2004. Jim Lewis was appointed as the new assistant harbormaster and advertising had been posted in house for a replacement harbor worker H. City hall would now be closed after 5:00 p.m. since the police dispatch had been temporarily relocated to the fire hall due to dispatch upgrades. The dispatch radio equipment would be completely upgraded and had been funded by a homeland security grant obtained by Chief Clemons. The project should be completed some time mid - September. The number to call for police department would remain 224 -3338, and there would also be a phone in the hallway on the West side of the City Hall building to contact dispatch during remodeling. ➢ There would be a work session Wednesday July 28 at 7:00 p.m. in City Council Chambers to discuss the Forest Acres Levee project. Shealy distributed a booklet to council for them to review before the annexation work session that would take place July 27 at 7:00 p.m. in City Council Chambers. The City Manager would make the annexation book available to the public at the Seward Library and at the City Clerk's office. ➢ Shealy reported he had met with Louis Bencardino, Ron Long, Council Member Dunham, a representative from the cannery and a delegation the State of Alaska had in Seward. The meeting was to discuss the possibility of utilizing different fish product in a process to be exported to Japan and China. ➢ In response to council member Margaret Anderson, Shealy stated the appraisals were in the process for the City Shop so the City would be following up on that later in the week. City Attorney's Report. City Attorney Cheryl Brooking gave a report on May 21 through July 20 They continued to work with the City on drafting and providing comments on contracts and other documents; assisted in proposed resolutions and possible ordinance changes, public records issues, administrative matters, leases, business license questions, employment and contract issues and ongoing litigation. They also continued to assist with enforcing zoning ordinances, advising on zoning and land use requirements, worked with harbor on lease matters and code enforcements. School Board Report. Sandy Wassilie — not present Chamber of Commerce Report. Richard Blythe - not present Other Reports, Announcements and Presentations. Presentation on Forest Acres Levee Project by William. I Nelson and Associates. Robin Reich, HDR informed there were two environmental laws that were deciding factors for the three alternatives presented to council. The first law was Executive Order 11988 relating to flood plain management; stating you would have to build outside of the flood plain unless there were no other alternatives. The other law stated you must avoid, minimize or mitigate impacts for wetlands. Reich presented charts depicting the proposed Forest Acres Levee alternatives giving a brief explanation stating the pros and cons of each. Citizens' comments on any subject except those items scheduled for public hearing. City of Seward, Alaska City Council Minutes July 16, 2004 Volume 36 Page429 Tim McDonald spoke regarding councils authorization to remove 100,000 yards of rock from the city rock quarry in exchange for the contractor on the boat harbor addition to clean up the rock quarry. McDonald was concerned the City had made an Ad Hoc decision that could have generated hundreds of thousands of dollars. He felt the City had given that money away with very little discussion. McDonald stated the City should review their financial control decisions. Paul Erickson reported he was a former slip holder in the harbor who let his slip go; however he still visited Seward frequently and was an advocate for more 32 ft. slips to be included in the harbor expansion plan. Molly Erickson stated increasing the recreational slips would increase the way of life for people of Seward. She suggested keeping commercial fisherman at July Creek so the harbor could attract recreational boaters bringing more business and people to gift shops. Iris Darling spoke in support of the Seward Historic Preservation Commission. She reported old buildings had been remodeled or would be renovated as a result of historic preservation. Preservation would promote downtown revitalization and quality of life. Darling urged council to fully support the Historic Preservation Commission efforts. Tom Swann spoke in support of the Seward Historic Preservation Commission. He stated the commission could cut expenses, but would like to see the City's support in their efforts to preserve the history of Seward for future generations. Doreen Lorenz spoke in support of the Seward Historic Preservation Commission. Doreen stated it was the responsibility of the commission to embrace, preserve, protect and educate about Seward's cultural history. Jim Pruitt spoke in favor of ordinance 2004 -01, changing the set backs in the industrial area from 20 ft to 10 feet and 10 feet on the sides to 5 feet. He would like to see set backs at zero lot line as they originally were built in that area. To add on to a building is near impossible. DJ Whitman spoke in favor of passing of Ordinance 2004 -01. Whitman felt passing Ordinance 2004 -01 would help with development of SMIC. He would like to see the administration and council move forward with the harbor expansion developing and extending B & C floats, rebuilding D float and extending it. Mr. Whitman suggested not building Z float so that money would be used for slips. He recommended moving X float and keeping it 200 ft. off the new breakwater to gain 600 feet of moorage. Tylan Shrock disagreed with the alternative the City proposed for the Forest Acres Levee Project. He stated federal agencies could build levees if they wanted to and reminded everyone of the upcoming work session on Wednesday night. Pat Marrs spoke in support of set back ordinance 2004 -01. He felt the set back would allow freedom of movement for business /property owners, giving them considerable advantage with more space to work with. Marrs also supported DJ Whitman's comments. City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36, Page430 Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: The July 12, 2004 regular city council meeting minutes were approved. Public hearings - None Unfinished business Resolution 2004 -75, approving Historic Preservation Commission Priorities. Motion (Branson /Anderson) Motion to Amend (Branson /Anderson) Approve Resolution 2004 -75 In the 7th whereas, delete "establishing on$ range planning for- aetiviti i ». delete 8 whereas in its entirety; delete all of the wording in section 1 and insert the following, "Seward Historic Preservation Commission continue to maintain their priorities and programs of interest in the history of Seward and the associated activities within the prevue of the commission ". Branson provided the clerk with a written amendment. She commended the Historic Preservation Commission for all of the activities they had listed in their resolution. The amendment she had suggested would allow the commission to continue with their priorities and other activities without specific projects listed as they were in the resolution before council. She felt council may not be able to approve every project listed on the resolution so eliminating the wording she had suggested would still support the commission's priorities. Amendment Passed Unanimous Main Motion Passed Unanimous Council recessed at 8:57 pm Council resumed at 9:07 pm New business Ordinance 2004 -01, amending Seward City Code Table 15.10.220 Development Requirements to decrease the setbacks in the industrial Zoning District. Ordinance 2004 -01 was introduced and public hearing was set for August 9, 2004. City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36 D--- 31 Shealy reported there was a public hearing held by the Planning Commission on February 3, 2004, recommending decreasing the set backs in the industrial zone. Motion (Dunham/Amberg) Introduce Ordinance 2004 -01 In response to Amberg, City Attorney Cheryl Brooking clarified the preferential treatment language referenced by Shealy was not made by the City attorney. The City was still in litigation with Mr. Pruitt. She stated Mr. Pruitt would have until August 2, 2004 to be in compliance or would be fined by the City and his business would be shut down. The ordinance before council would be for introduction only and would apply throughout the entire industrial zoning district if the setbacks were reduced. Introducing the ordinance at this time would set it up for public hearing at the next meeting if it were passed today. Clark reported this issue had been on the Planning and Zoning agenda from October - February every month so he felt it was time for council to move forward with this ordinance. Council member Margaret Anderson agreed this issue had been up for discussion long enough and action needed to be taken by council. Motion passed Unanimous Resolution 2004 -79, outlining parameters for payment in lieu of taxes to municipalities as recommended by the Municipal Advisory Group. Shealy reported Dunham and Valdatta were the City's representatives of the Municipal Advisory Group (MAG) appointed by council earlier in the year. This act would allow a project developer to negotiate special fiscal terms on a gas line project as well as special tax arrangements. On July 14` council passed Resolution 2004 -64, clarifying the City's position in regards to the Stranded Gas Development Act. The advisory group had now come to a consensus on the general parameters which payments in lieu of taxes should be negotiated and asked community members to adopt these standards as presented to council at this time. Motion (Dunham/Branson) Approve Resolution 2004 -79 Motion passed Unanimous Resolution 2004 -80, authorizing the city manager to pay the law firm of Kemppel, Huffman & Ellis $27,218.29 for legal services rendered and appropriating funds. Shealy reported Dean Thompson had worked on behalf of the City in the Chugach rate case before the Regulatory Commission for the last year. During that time the City had obtained through those efforts a substantial rate reduction in addition to a refund for past over charges in excess of $200,000. The administration recommended council authorize them to appropriate funds from the Electric Fund fund balance to pay fees for the service provided by Kemppel, Huffman & Ellis authorizing payment to the law firm in the amount of $24,218.29. Motion (Branson / Amberg) Approve Resolution 2004 -80 City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36, Page432 Motion passed Unanimous Resolution 2004 -81, authorizing the city manager to issue a change order for an amount not to exceed $63,000 to Peninsula Construction, Inc. for an additional 700 feet of 10 -inch water main for the North Seward Water System Improvement Project and appropriate funds in the amount of $63,000. Shealy stated Peninsula Construction was completing construction of a waterline to serve the Forest Acres area. The money was funded by a combination of Federal, State and local monies in the amount of $566,000. The construction contract was over $340,000. With the construction of the new middle school in the neighborhood, staff recommended the City provide a loop to reinforce water supply to the school district. The loop would be 700 feet of a ten inch water main constructed on Hemlock Street from Afognak Avenue to Oak Street as depicted on the map found on page 54 of the council packet. The administration proposed a change order be issued for $63,000 to the same contractor to extend the water line along Hemlock from Oak St. up to were it intersected with the waterline that had been built on Schafer's property identified as the "proposed water main ". Alternative #4 had an estimated cost of $885,000. That amount was the engineer's estimate of both water lines which the administration did not feel was affordable so they opted not to construct the proposed water line along Hemlock Street. With the approval of the change order the contract would be for about $411,000 or about half of the original estimate and 72% of the grant amount. The change order would reinforce water pressure to the school and loop the water main in the area. Motion (Dunham/Branson) Approve Resolution 2004 -81 In response to council questions, Shealy clarified a waterline was being constructed by the school people going across private property. Oak Street currently had a waterline from either Hemlock or Ash. The $169,950 was combined State, DEC, Federal EPA money and a City match. The City had not identified how remaining funds would be utilized. Shealy would look into the water tower as a possibility for investing the remaining funds. Motion passed Unanimous Resolution 2004 -82, authorizing a contract with N. Harris Computer Corporation for the purchase of computer hardware and software for utility billing and appropriating funds in the amount of $183,950 Shealy reported the City had been using the same utility software for over ten years. Support for the current vendor Alaska Electric Light and Power (AEL &P) out of Juneau would cease to exist after 2004. For the past two years the City had been working with AEL &P researching alternative vendors for a new software program that would match the City's billing requirements. If the City were to select the same software as Juneau, the City would have a local Alaskan resource for their training and software support. Northstar software was priced competitively and was the closest match to meet the needs of the City's current billing system. The money being requested was not budgeted for 2004 because it was anticipated to be in the 2005 budget. City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36 Page433 Motion (Branson /Anderson) Approve Resolution 2004 -82 Finance Director, Kristin Erchinger reported this software was a utility billing package that would be used for accounting and utilities combined. This system would cover electric, water, sewer and garbage. The company the City selected is the leader in software for installation at sites with communities the size of Seward. Utility software is usually based on the number of people it is designed to serve. Finance looked at 6 different vendors after being turned away by other vendors who were not willing to consider offering a utility package to the City due to the small size of their customer base and the budget the City had to work with. Electric Department Manager, Dave Calvert stated the City of Seward served approximately 2500 utility customers. The Northstar software would allow engineering analysis that couldn't be done with the existing system. This software was needed and reasonably priced. In response to several questions from council, Erchinger stated the system would allow engineering analysis in conjunction with utility billings and accounting. It would allow other utility departments to communicate with each other where that was not available in the past. This would help finance, public works, electric, water, sewer and garbage departments to communicate better. This software had the ability to map the location of transformers and what accounts were attached to those transformers. Finance would be replacing their lead utility billing employee in 3 years because she intended to retire after 27 years with the City. They had been trying to cross train the utility billing position for the past 4 years but it had been a difficult task to accomplish due to the fact the current billing system was so hard to train others on. The most important savings would be cross training people on the new system since there was currently only one person in the office that knew how to use the system in place. Training on the new system would not require out of state training, the time to train would be minimal and the software would be more user friendly. Amberg would like to see additional back up showing the reason the City selected this software. Valdatta stated we would be saving money by piggybacking with Juneau on this software. Erchinger felt this software would pay for itself due to easy training and user friendly ability in addition to reasons previously stated. Motion passed Unanimous Resolution 2004 -83, authorizing a one year contract for $371,464.67 with the State of Alaska, Department of Corrections to provide for operating the Seward Community Jail and housing prisoners charged and /or sentenced under Alaska Statutes. Shealy reported this renewal was presented to continue the current contract with the State of Alaska to operate the jail. This new contract would be in force for one year effective July 1, 2004 through June 30, 2005. Motion (Branson / Dunham) Approve Resolution 2004 -83 City of Seward, Alaska City Council Minutes July 26 2004 Volume 36, Page434 Motion passed Unanimous Resolution 2004 -84, stating an intent to fund $3,500,000 for the purpose of replacing the Third Avenue Water Main from Railway Avenue to Port Avenue subject to receiving a loan in that amount, authorizing a loan application with the Alaska Drinking Water Fund and authorizing the city manager to accept a loan offer from the Alaska Drinking Water Fund with payments subject to annual appropriation. Shealy stated council had approved the 3` Ave waterline upgrade as a number one priority for infrastructure projects. Timing on this project was critical because the water main was currently located beneath the highway slated to be resurfaced by the state as part of the 2005 0 -8 mile project. The state was willing to coordinate the City's construction project with theirs which would provide cost efficiencies for both the City and State. In order for the state to move the project forward in conjunction with the city's project, the water main would have to be included in their plan and the state would have to adjust their environmental statements so the City would not have to do any; and the City would have to ensure the state they could come up with a sufficient amount of money estimated to be about $3 million dollars to pay for the water line and for the inclusion into the state construction project. The Water Enterprise fund did not currently have sufficient reserves to pay for this project. The administration recommended the project be paid for by a combination of a water rate increases and/or property assessments in order to fund the $3.5 million dollar project and to repay a loan to ADEC. The City would have to let the state know by the end of month if they would be willing to proceed with this project. If the water main were to fail in the future the City would have to pay for replacement of the water main and asphalt. In addition the state indicated they intended to fund the portions of curb and gutter and sidewalks the City would not be disrupting so all the walks and curbs would be new construction and match. Motion (Dunham/Branson) Approve Resolution 2004 -84 City Attorney Cheryl Brooking clarified the state needed a commitment from the City. The City had not yet filled out the application on this loan or seen what the requirements were. If there was to be a specific pledge of revenues or taxes pledged to pay this, it would come back to council. If there were to be taxes pledged, or it started to look like a GL bond it would take a vote of the people. This would be excess revenues, if available subject to annual appropriation. This resolution does not pledge any property assessments or water revenues at this time. In response to Valdatta, Shealy stated the waterline was being upgraded, approximately doubling in size to handle the increased demand. This waterline was the spine to the entire water system in the City of Seward. Shealy confirmed this would give the City of Seward a better fire code rating. Motion passed Unanimous Resolution 2004 -85, authorizing the city manager to purchase a' /a ton pickup under State of Alaska bid number TB- 063 -505 for a price of $23,501.00, including trade -in of vehicle 502 and appropriating funds. City of Seward, Alaska City Council Minutes July 26, 2004 volume 36 Page435 Shealy reported vehicle 502 in the electrical department was a 1999'/4 ton pick up which had reached the point where it was not economical to continue to repair. Maintenance logs showed the expenditures of $6,600 in recent years for vehicle 502. The vehicle was unreliable and it would be prudent to dispose of the truck by trading it in toward the purchase of a newer vehicle. Motion (Branson/Dunham) Approve Resolution 2004 -85 Motion passed Other New Business Items Unanimous Discussion of a newly proposed Phase 1, East Harbor Expansion Project. Shealy commented there had been a couple of work sessions to identify changes in the harbor design as suggested by council. The City's consultants outlined what the administration believed to be the consensus that came out of the last meeting. The cost of preparing the necessary work to make a decision based on a number of slips and review various alternatives would be $6,500 which could be applied to the current contract the City had with Tryck Nyman and Hayes. Shealy pointed out they would be analyzing the cost of wood vs. concrete floats and the rehabilitation of existing D float by using harbor staff. Valdatta suggested the City consider a location for the Seaman Memorial. Shealy suggested PACAB could work on that project. Dunham stated moving Z float out from its current location would tear up the possibility of expanding or putting any other births in the area between Z and X. In response to Dunham, Shealy reported the City had discussed extending B float, C float could or could not be included depending on direction from council. Discussion also included extending D float as well as reconstructing it with minor extensions on E, F & J float that would add approximately 115 new slips. There was an estimate of slips and cost that came to approximately $7 million if relocating X and construction of Z float were included. Consultants indicated the cost to rehabilitate D float could be reduced considerably by in house work. Z float itself was approximately a $1 million dollar project. Relocating Z float away from the breakwater to permit moorage on both sides would preclude construction of additional slips on the East side. Building Z float adjacent to the breakwater may or may not be an option exercised in the future. Council Member Anderson commented if Z float were moved out, it would be capable of larger slips on both sides and allow more flexibility for linear moorage. There would be more versatility with linear moorage than set slips. Currently 30 % -40% of total moorage fees were from transient moorage. Branson was not willing to vote for council to make any decisions on designing the boat harbor since none of them were engineers. Motion (Dunham/Anderson) Authorize the City Manager to move forward with the current scope of work of the newly proposed City of Seward, Alaska City Council Minutes July 26 2004 Volume 36, Page436 Motion Passed: Informational items and reports — None Council comments Phase I of the East Harbor Expansion Project. Yes: Dunham, Anderson, Amberg, Valdatta, Clark, Shafer No: Branson Amberg congratulated Jim Lewis for his new position as Assistant Harbormaster and she congratulated and welcomed the new police officer Matthew Armstrong. Valdatta appreciated the City had used in house staff for promotions. Shafer stated she was gone for three weeks and was very happy to be home. It was nice to go, but it was very nice to come back. Shafer missed Seward while she was out of town. Citizens' comments Rick Blythe, Chamber of Commerce President apologized for not making it earlier for the Chamber Report. The new Executive Chamber Director Laura Cloward had been on the job for the past couple of weeks. The visitors guide would be new next year and would be published by the Chamber as they had in the past. The cost for the Chamber to do this would be about $35,000 to $40,000. The railroad car would remain with the Chamber for now. The Northstar Brand Point Project (study and research on branding & recommendations on branding for the City) would move ahead. A contract had been signed with Northstar for the two year project. Northstar would arrive in Seward on the 12 to meet with businesses and interview visitors. The Chamber had intended to address council to request funds to move the Northstar project forward, but they were able to completely fund the first year of the project. Next year the Chamber may address council for additional funding since the total cost for the project would be $60,000. Rick Blythe and Chamber Director Laura Cloward would be meeting with City Manager Phil Shealy and Finance Director Kris Erchinger in the next few weeks to discuss a draft agreement regarding the Brand Point Project. Council and administration response to citizens' comments Valdatta reported last Monday Fed Ex had shipped 59,000 lb. of sport caught fish with 12,000 lbs. of that coming out of Seward. Go into executive session to discuss a confidential personnel matter. Motion (Dunham/Branson) Go into executive session to discuss a confidential personnel matter. Motion Passed Unanimous City of Seward, Alaska City Council Minutes July 26, 2004 Volume 36, Page431 Council went into executive session at 10:21 p.m. Council came out of executive session at 10:26 p.m. Adjournment 10:27 pm The meeting was adjourned at 10:27 p.m. Jn Lewis City Clerk sae ®aaa (City SPO)6 g.p .••� .s _ R Vanta Shafer Mayor City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page438 Call to order The August 9, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Chief Tom Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Margaret Branson Linda Amberg Bob Valdatta Margaret Anderson Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Erin Leaders, Assistant City Clerk Brad Meyen, City Attorney Absent — None Special orders, presentations and reports The dance group attending the 5th annual Youth Festival in Yeosu, Korea was introduced by Cathy Gonzalez. Tarah Seavey, Jenny Sela, Clamity Farris, Carly Locke and Jasmine Gonzalez would be attending the festival with Cathy Gonzalez as their chaperone. Proclamations and Awards — None Borough Assembly Report. Borough Assembly Representative Ron Long- Not Present City Manager's Report. City Manager Phil Shealy reported Matt Chase had been hired to fill the Harbor Worker I opening. Mr. Chase had been a Harbor Worker II in the past and would begin working for the City again this week. Shealy had met last week with Allen Osterman regarding the Shellfish Hatchery. The Electric Department was in the process of replacing their 1983 boom truck. They had $220,000 budgeted and would be bidding for a new boom truck. Shealy updated on the status of the $2.3 million dollars the Park Service was to receive from the Department City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page439 of Transportation (DOT). Pete Armano with the Park Service anticipated the funds from DOT would be in hand by the end of this year. A list of unbudgeted items the City had spent year -to -date was presented to council. City Attorney Report. City Attorney Brad Meyen stated Cheryl Brooking had given a full report at the last meeting so he had nothing new to report. School Board Report. Sandy Wasille stated the local Seward Education Alliance was right on track for some aspects of systematic change. The School Board conducted the superintendents' evaluation and renewed her contract for three years. The board planned and established their 2004/05 goals. There would be a co- curricular task force formed that would be giving its recommendations to the board by Dec 1 The school board had proposed establishing a working budget review committee beginning in September. The intent was to obtain input from the different departments in the district, conduct public hearings in the communities in October to get their input, and have the public assist with putting together the first draft of budget to go to administration for review and changes. The administration would then develop a preliminary budget to present to both the committee and school board. There was a policy change made in regards to harassment. The board was requested to add the wording "any other real or perceived difference" to part of the definition of "sexual harassment ". School would start August 24 Seward High School was able to get "half' a position more through budget allocations. Other Reports, Announcements and Presentations. Port and Commerce Advisory Board applicant: Andrew Hettinger thanked council for the opportunity to address them. He stated he was optimistic about raising his family in Seward and appreciated the chance to serve his new community. P &Z liaison report. Margaret Anderson reported Planning and Zoning had passed a resolution for a conditional use permit regarding an interior remodel at 335 Third Avenue. There would be a one hour work session Sept 7`" to complete the land use map for inclusion with their comprehensive plan. On Sept. 21 there would be a public meeting from 6:30 —9:00 p.m. to receive public comment on the draft comprehensive plan. PACAB liaison report. Willard Dunham informed he had attended the PACAB work session on Wednesday which was a carry over of an earlier July meeting that had been cancelled. A new harbor expansion plan was proposed at that meeting regarding floats in the harbor to be further discussed at their next work session. The Tustumena and Kennicott public hearing had been rescheduled. Dunham felt this issue needed to be seriously addressed. He also informed the public there would be another PACAB work session next month. Citizens' comments on any subject except those items scheduled for public hearing. City of Seward, Alaska City Council Minutes August 9, 2004 volume 36, Page440 Roger Steinbrecher spoke in opposition of Resolution 2004 -89 and asked council to take a good look at keeping the levee at the red alignment as the road sits now. Al Schafer spoke on behalf of Afognak Construction in support of the red alignment for the Forest Acres Levee Project. Tanya Sandefur spoke in opposition of the Altermatt/Carter Lease approved by council on March 22 °d . She stated council should be informed there were plans to build a 24 X 70 foot building, possibly a two story building on the leased land extending from the J -Dock fire lane, south to the Coast Guard building in the boat harbor. She encouraged council to contact P &Z and Alaska Railroad regarding those plans. Tylan Schrock spoke in opposition of Resolution 2004 -89. He stated the money for the Forest Acres Levee Project would not be lost if the City did not move forward with the project unless they sent a letter to Senator Stevens saying they did not want the money. Mr. Schrock commented the window had been missed to take care of flood problems this fall so he asked council to look at this project for another year and to push for the red alignment. Schrock was definitive that taking the work from the Environmental Assessment, turning the red alignment into the environmentally preferred alternative, and actually evaluating it could keep the City out of an Environmental Impact Statement (EIS). He stated the red alignment had never been presented to the resource agencies as the environmentally preferred alternative. Schrock closed in asking the city council to take another four months, a new crew and a new proposal to address this issue. Louis Bencardino stated he had been in Seward long enough to have been involved in both of the big floods Seward had. Mr. Bencardino had seen the damage done to homes, the problems the City had and the money they had spent. The City of Seward had always tried to develop lands stating there wasn't enough land to build homes and now they were trying to take away land. Mr. Bencardino supported the "red route" because it would not be taking property away from people, it would be working with the City's people to get something done they would like to have. Port and Commerce Advisory Board Member Tom Tougas passed out a new harbor plan he developed and felt should be considered. Mr. Tougas did not feel council should approve any package that did not produce at least 250 new slips and pay for itself. 250 slips would create economic activity, reduce the waitlist and upgrade the harbor rather than tack slips to existing floats. Mr. Tougas stated his plan would add 103 slips in the South harbor, 141 slips in the North harbor with a total of 360 slips for an estimated cost of $7.4 million dollars (that would include 1 million dollars of engineering contingency). Port and Commerce Advisory Board Chair Deborah Altermatt reported the East harbor goals three years ago were to promote economic activity in the harbor, and to get the wait list down. PACAB had been involved in public hearings and felt design had been changed more by the council than public process. Ms. Altermatt requested a joint work session with council and PACAB to review current ideas with council regarding economic impact. City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page441 Pat Marrs spoke in opposition of the harbor plan Mr. Tougas had proposed. Mr. Marrs did not see any provision for commercial traffic in the new harbor plan Mr. Tougas had just distributed to council and the public. Mr. Marrs stated the harbor was not for any one individual, but for the whole community and we needed to look at the overall growth for everyone, not just individual business owners. Approval of agenda and consent agenda Motion (Branson /Anderson) Approval of Agenda and Consent Agenda Motion passed Unanimous The following was added to the agenda: Discussion on the Tustumena Ferry. The clerk read the following approved consent agenda items: Resolution 2004 -86, authorizing the city manager to execute the Hazard Mitigation Grant Agreement for the Hazard Mitigation Plan for the City of Seward, and appropriating funds. Resolution 2004 -87, authorizing the city manager to sign an extension of a special services contract between the City of Seward and the Department of Public Safety providing dispatch and clerical service to public safety employees in the Seward area for $48,500. Andrew Hettinger was appointed to fill the Port and Commerce Advisory Board vacancy for a term to expire February 2007. Public hearings Ordinances for Public Hearing and Enactment Ordinance 2004 -01, amending Seward City Code Table 15.10.220 development requirements to decrease the setbacks in the Industrial Zoning District. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Jerry Waliezer spoke in support of Ordinance 2004 -01. Mr. Waliezer stated he and his wife owned property that would be directly affected by this ordinance. Motion (Anderson/Dunham) Enact and approve Ordinance 2004 -11 Shealy stated in February the Planning Commission passed a recommendation decreasing the setbacks in the industrial zoning district. Included in that area were SMIC, the head of Resurrection Bay at Metco, and Resurrection Bay Seafoods. City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page442 Shealy reported Leirer road was a standard width but he was not sure about streets in other industrial areas. Any building that encroached closer than either the old standards or proposed new standards would be considered a legal non - conforming use. For example, the City would be working with AVTEC to have their pumps removed. Non - conforming buildings that existed prior to the ordinance would be permitted to remain. Existing buildings would not be affected; this ordinance would mostly affect new construction. Council Member Linda Amberg did not think current set backs were that big of an issue. The biggest concern she could see would be safety and fire with regards to laddering. If you looked at advantages vs. disadvantages, the benefits were only 6:13 ratio. Motion Enacted No: Amberg, Branson, Shafer Yes: Clark, Valdatta, Anderson, Dunham, Unfinished business — None New business Resolution 2004 -88, authorizing an increase in the budget for the snow and ice department and appropriating funds. Shealy reported the snow and ice department personnel budget was over by nearly $27,000. The administration anticipated an estimated $29,000 this year for snow removal from October to December. Public Works Director WC Casey stated a budget increase would be necessary to prepare for the upcoming winter since the current budget was too lean to shuffle funds. The Public Works budget already had a $26,000 overage this past January, February, March and April. With $29,500 needed for the remainder of this year, in addition to the $26,680 already spent, public works was seeking an appropriation of $56,180. Council members Amberg, Anderson and Valdatta recommended the administration look at how much man and equipment time had been spent in the past on driveways vs. roads and streets. Amberg, Anderson and Valdatta had requested the administration look at enterprise funds during the budget process for some of the snow removal cost. Valdatta had also suggested some of that money come out of the parking lot funds. Motion (Dunham/Anderson) Approve Resolution 2004 -88 City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page443 Motion passed Yes: Dunham, Branson, Anderson, Amberg, Valdatta, Shafer No: Clark Resolution 2004 -89, authorizing the city manager to pursue final environmental permits for the North Forest Acres Levee/Road Project, authorizing an increase in the contract with William J. Nelson & Associates in the amount of $24,681.45 for final design, and appropriating funds. City Manager Phil Shealy stated following the 1995 flood, FEMA had sponsored a multi agency task force to form a flood plan that resulted in a compromised alignment. Staff members felt they had negotiated in good faith and had addressed the two objectives the community had brought to their attention; protecting the City from flooding and removing heavy truck traffic on Dimond Street. The compromised alignment would leave homeowners at least 200 feet away from the proposed alignment of the new dike. The administration asked council to approve acceptance of the final alignment 100 feet south of the northern red line. The change order was based on the assumption there would be no further changes in the alignment. Finance Director Kristin Erchinger stated going back to the table could ultimately result in an Environment Impact Statement (EIS) that would result in at least another 2.5 years of negotiation and thousands more dollars. State and Federal agencies wrote several letters to the City stating their opposition to the red alignment due to the possible impact on wetlands and flood plains. The State and Federal agencies preferred the alignment that would keep the levee as close to the neighborhoods as possible because it would not damage wetlands and flood plains as the red alignment would. From the beginning the City supported the red alignment, keeping the levee as far from the neighborhood as possible. After 5 years of negotiations the proposed alignment was the one the agencies felt most comfortable agreeing to since it had the least damaging impact on wetlands and flood plains that they could legally accept. The agencies argued the further North you push the levee, the faster the water would flow, making the environment the least hospitable to the plants and wild life and reducing the amount of land available for migration of animals in the area. Erchinger stated this argument was about winning a proj ect that would protect properties in the neighborhood, the infrastructures at risk such as the Alaska Railroad, the harbor, the fisheries and all other infrastructures that were damaged in the last flood. The proposed alignment would be 100 feet farther South than originally hoped for, but it would maintain the levee 200 feet away from the property lines of current homeowners, and the property to the North of them would remain fully treed and undeveloped. The City had offered solutions to address and mitigate possible noise and pollution issues that may be a problem as a result of the proposed levee alignment. In response to Valdatta, Shealy reported the airport designers were the Department of Transportation and they had directed where the alignment would come up to the highway. Nelson indicated the City would have to move the road a little further south to avoid some wetland there. City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page444 That area would then become a ponding area so it would not flow over the road and impact the airport; it would pond there and go back down through the bridges where it was designed to go. Discussion ensued on the Forest Acres Levee project. Motion (Anderson/Dunham) Postpone Resolution 2004 -89 to the August 23 council meeting. Motion passed Council recessed at 9:15 pm Council resumed at 9:25 pm Yes: Anderson, Branson, Valdatta, Dunham No: Clark, Shafer; Amberg Council member Linda Amberg left during recess and was excused from the remainder of the council meeting. Dunham requested a reconsideration of Ordinance 2004 -01, he had voted on the prevailing side so the motion was in order. Dunham stated he wanted to place the reconsideration on the next agenda. Other New Business Items A budget work session was scheduled for August 26, 2004 at 7:00 p.m. Discussion on the Tustumena Ferry. Council directed the City Manager to present a resolution at the next council meeting requesting continued ferry service by the MN Tustumena and MN Kennicott. Informational items and reports — Memo from City Clerk regarding upcoming exchanges with Japan and Korea. Council comments Anderson shared that her grandson was back in Alaska for a few days on leave after spending 11 months in Iraq with the Army. She thanked everyone for supporting our troops. She also thanked the Chamber for sponsoring the 49 Silver Salmon Derby and hoped the community and local businesses would support the Chamber. Anderson congratulated Dale and Carol Ann Lindsey on their upcoming 50 wedding anniversary. City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page445 Clark thought expecting new information from the administration on the Forest Acres Levee two weeks from now would be pointless since they had already indicated where they stood. He stated council needed to give administration direction as to what their wishes on the levee were. Clark commented there should be incentives for departments not to spend everything they had budgeted for just because there was money left over at the end of the year. He also congratulated Dale and Carol Ann Lindsey on their upcoming anniversary. Dunham thought it was wonderful another couple had made the 50 year mark. He stated vandalism in our community was an issue that should be addressed by council. He questioned if our City ordinances addressed vandalism. He thanked Don Young for bringing the transportation committee to Seward for the Don Young Classic. Dunham had the opportunity to speak with the Director of CXX and the director of the U.S. Railroad Authority and found it interesting. Shafer said it was great to see town so full this past weekend and hoped to see that continue for the next two weeks. Shafer stated while Don Young was in Seward, the City's lobbyists were also in town so they were able to discuss various Seward projects such as the Multi Agency Facility, replacement for the Alpha Helix and Seward Shipyard. It was a great opportunity to refresh their minds on Seward's projects before they went back to Washington. Citizens' comments Tom Tougas strongly urged council to study the harbor plan he had proposed. He commented the City waitlist did not discriminate between recreational and commercial boats. One thing people had said they wanted was a slip with power and parking close to the slip. He felt council should create a task force to look at the new area to be created by the Corps of Engineers as a possible seaman memorial, parking, commercial development or hopefully some grass and trees. Once council decided what they wanted Mr. Tougas felt they should go out for RFP to look at the value versus cost for concrete. He did not think sole sourcing would get the most value for available funds. In closing he reminded council all of the initial harbor plans had shown slips in the entrance to the channel. Later down the road there had been discussion about putting a launch ramp in what was currently the entrance to the channel which council had voted down, but the slips were never put back into the plan. Tim McDonald spoke in opposition of the proposed site for relocation of the City Shop. He felt the City should look at SMIC as a site for the shop and possibly a good place for a multi use facility. The shop and fleet storage would be out of the public eye if relocated to SMIC and it would be a good utilization of the land. Deborah Altermatt reiterated the Harbor plan had been an issue for years. Ms. Altermatt stated concern about the wedge between commercial and recreational users. She felt the Harbor plan made economic sense and provided harbor use for all users. Ms. Altermatt spoke on behalf of PACAB and asked council to attend their work session on the 18` of August since a joint work session between council and PACAB would not be discussed until the next council meeting. City of Seward, Alaska City Council Minutes August 9, 2004 Volume 36, Page446 Tanya Sandefur read Planning and Zoning Resolution 2002 -12. She pointed out although P &Z had authorized disposal by lease of Lot 1 Block 6 in the Seward small boat harbor subdivision located north of the 25 foot utility easement in J Dock; they had recommended council not to dispose of the remainder of Lot 1 Block 6 in order to maintain the property of public parking, fire and pedestrian routes, utility easements and access to the ARR right of way. Council had authorized for lease disposal of the lot located north of that land but the South portion was never nominated for disposal. Tylan Schrock spoke in opposition of the proposed Forest Acres Levee alignment and he asked council to address the agencies with a new presentation for the red alignment. Schrock wanted to know what the mitigation measures would be before the City selected an alternative, so they could see what it would do in terms of impact. Roger Steinbrecher asked council to give the Forest Acres Levee road project one last shot. He asked council to fight for every foot not only to get the road to the North, but to keep the vegetation on the south side of it. He felt vegetation would be the best fence. Council and administration response to citizens' comments Dunham did not feel it was fair to ask Erchinger to go back to the agencies to present an alternate proposal for the Forest Acres Levee. He felt the city manager should be the one to present an alternate proposal to the agencies. V aldatta thanked Mr. Tougas for bringing up the Seaman's Memorial and felt it should be addressed now. Adjournment The meeting was adjourned at 10:08 p.m. Vanta Shafer Mayor Jean fewis City Clerk ��s ®eae9gr�►a�A�s, (City Seal) �•o @ Av�oA�T�• a _ • ¢� A w w i �n�V'" 4 T � a ve • q• o n Alp Vanta Shafer Mayor City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page447 Call to order The August 23, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Margaret Branson Linda Amberg Bob Valdatta Margaret Anderson Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent —None Special orders, presentations and reports Proclamations and Awards - None Borough Assembly Report. Borough Assembly Representative Ron Long stated they were about to open up Birch Ridge and Grouse Ridge subdivision parcels soon. The question of a mayor vs manager form of government was voted down 5 to 4. A citizen petition was presented but did not meet the signature requirements to make the ballot. The Assembly then introduced it. The change from a $10,000 to $20,000 exemption will go to voters this fall. If this were to pass, that would be about a $900,000 shortfall in the Borough budget that would need a property tax increase to make up for it. Long reported there were land parcel issues for re- classification on Tract 1 & 2 on Exit Glacier Subdivision #2. The Flood Service Area Board and the Planning Commission recommended these parcels be put in preservation until a development plan was completed. The Administration requested they be put in commercial. The portion of the Sterling highway from Skilak Loop Road to Anchor Point which was proposed to be designated a scenic byway, had generated much discourse, discussion and debate over the last three meetings. It would be up for reconsideration at the next meeting. City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page448 In response to questions, Long stated there was some land involved within the Exit Glacier tracts that were wetlands, but also some good developable land that could be put on the tax roles. He also stated that Grouse and Birch ridge were under Bean Creek Road. City Manager's Report. City Manager Phil Shealy reminded council of a budget work session at 7:00 pm this Thursday. He handed out material from the engineers to look at alternatives with the harbor, and the Forest Acres waterline was just about finished. Mayor Shafer had attended meetings with Qutekcak Hatchery, and noted another group was interested in managing the hatchery. Talks were continuing. Anderson wanted a report on the boardwalk and pavilions at the next meeting. In response to questions on the Third Avenue waterline, Shealy stated a loan would be obtained from DEC and paid back by a rate increase and/or assessment district. How to fund this would be discussed as part of the budget process. Shealy stated DOT had been notified that the city would do this. Shealy stated the shipyard was a priority and would continue to meet with the delegation in Washington DC to further fund it, and updated appraisals on the new city shop relocation were ordered and should be available for the next meeting. City Attorney Report. — None School Board Report. - None Chamber of Commerce Report. Chamber President Rick Blythe spoke on the branding and marketing program. There would be a vision survey coming out soon. A draft would be sent to the city manager tomorrow on the operating agreement and they were busy with the derby. A representative from Norwegian Cruise Lines spent the last 2.5 days in town talking with businesses in the community on the 6 days of port-of -call next summer. The Chamber would be hosting business sessions in mid - September on how to make this a profitable venture. The Chamber staff and Planning and Zoning Commission addressed the railroad car on Third Avenue. If it was to be turned over for commercial use, it would need a foundation, be ADA compliant and the current encroachment would not likely be extended. Also an application would be needed for a variance to merge the two lots. Therefore, the chamber was looking for ideas on public use of that railcar. Blythe indicated the Salmon Derby finished with one tagged fish worth $100 caught. Total ticket revenue was down by $100 from last year. Expenses and revenue analysis were still being conducted but appeared comparable to last year. The total dollar amount of tickets sold this year was $109,400 before expenses. City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page449 Other Reports, Announcements and Presentations. Report and powerpoint presentation given by Theresa Zabala, Kushiro Adult leader, on their attendance of the World Children's Summit in Kushiro Japan. Citizens' comments on any subject except those items scheduled for public hearing. Steven Schafer, observed that much money had been spent on the Forest Acres Levee project in recent years and he had just realized as a property owner, he had not been contacted or actively included in the process on where the alignment should go. He thought if the city did their permitting, they still did not have a right -of -way. Schafer felt eminent domain process would take longer than an EIS. He thought the city should bring more experienced people into the negotiations. He reiterated that the red alignment was more palatable for the land owners in the area. Tylan Schrock, asked council to make a motion to put the Forest Acres levee project back to the resource agencies and not table or postpone the resolution tonight. No mitigation had been put into place before adoption of this resolution. Schrock also supported resolution 2004 -90 for continued ferry service into Seward and the shellfish hatchery. Nina Daley, spoke on the Industrial Setback ordinance that was on the agenda and noted fj ord topography did not allow enough room to spread out. She thought the City needed to make the maximum and most efficient use of the land for development. She felt reducing the setbacks would give developers more flexibility. Easements and fire protection were dealt with through the building permit process. Setbacks alone played a small role in easements and fire protection. Daley felt safety was not being compromised in any way by reducing those setbacks. Jerry Waliezer sat through many meetings and felt the Planning and Zoning Commission addressed all concerns and issues very carefully. He saw good compromises and supported decreasing those setbacks. Stu Clark, was confused on the reconsideration page for the Forest Acres levee that was in the packet. Was this intended to be incorporated to be an amendment to the resolution or information? He wanted to know how the administration would handle the project. Clark stressed the red line was supported by the citizens and should be supported by the council. Rick Blythe, supported the Marine highway resolution and noted the Chamber would stay in touch and meet with political representatives next week. Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda The following was pulled from the consent agenda: City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page450 Resolution 2004 -90, requesting continued ferry service by the MN Tustumena and MN Kennicott. Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -91, appropriating the $257,000 legislative appropriation for the Fire /Rescue /Security Vessel. The July 26 regular city council meeting minutes were approved. Public hearings — None Unfinished business Items for Reconsideration City Clerk Jean Lewis stated on August 9 the city council passed Ordinance 2004 -01 which decreased the setbacks in all of the industrial districts. Council member Margaret Anderson filed a written motion to reconsider the next day. She had voted on the prevailing side and the motion was timely and in order. It needed a second and must pass by 2/3 vote. Motion (Anderson/Dunham) To Reconsider Ordinance 2004-01, amending SCC table 15.10.220 development requirements to decrease the setbacks in the Industrial Zoning District. Branson wanted this reconsidered because she thought it would have unexpected consequences. She thought a 10 -foot setback would now make parking spaces illegal, buildings were erected helter skelter, snow plowing would be pushed into the road instead of setback areas, and this ordinance pertained to all industrial areas. She did not think this change could improve the area. Dunham thought an interesting point was raised about parking and other issues and asked the administration if all departments had had input. Shealy injected that the planning staff recommendation was to reject this proposal. The Planning & Zoning Commission approved it. He understood the Fire Dept. was consulted for their laddering and agreed with the setbacks as proposed. Parking was an interesting point brought up and was part of the submitted site plan and would have to be provided. Shealy stated by separating city - owned from privately -owned industrial areas, this could increase the number of districts we had instead of decrease them. With these issues raised, he suggested council may want to refer the matter back to the Commission to review again. City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page451 In response to Dunham, Shealy stated some of these buildings were classified as legal non- conforming use, which would continue for the life of the building. If destroyed, they would have to build to comply with the new code. Clark thought the Planning & Zoning Commission had conducted enough meetings and had put a lot of effort into their decision. In response to Valdatta, Shealy stated a portion of Leirer Road had been surveyed. Anderson agreed with Clark. She had reviewed the minutes from the Planning & Zoning meetings and they had held a lot of public hearings on this issue. Anderson only brought this up for reconsideration because asked by a fellow council member. She pointed out with the configuration of the town layout, snow would continue to be pushed into the streets. Motion to Reconsider Passed by 2/3 vote Yes: Branson, Valdatta, Dunham, Amberg, Shafer No: Anderson, Clark Ordinance 2004 -01, amending Seward City Code Table 15.10.220 development requirements to decrease the setbacks in the Industrial Zoning District. Motion (Anderson /Dunham) (previously made on 819) Approve Ordinance 2004 -01 Branson thought it was a good idea to refer this back to P &Z to address parking and other zoning issues. Rules were suspended to allow Nina Daley to speak Unanimous Planning and Zoning Commissioner Nina Daley noted some zones were not required to provide on -site parking but did have to require parking in the Industrial Zone. Depending on the size and use of the building, the parking code specified the number of spaces you must provide, with the minimum space size being 18' x 8.5' wide. Parking was required to be on the site plan and did not have to be in the front of a building. She noted any plan would still have to meet the building codes. Anderson stated the city had a lot of non - conforming issues, but it was time to vote the ordinance and be done with it. Clark thought the businesses wanted 0 lot lines because it would be more valuable for re -sale, and less hassle to re -build if a portion was destroyed. Amberg informed they could re -build their building if it were destroyed, they would just have to build according to the current code and ordinances in place. I initially voted against this because City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page452 of the safety factor. The Fire Department could live with these changes, but they did not like it, and thought all businesses could live with the setbacks as they were. Motion Failed Yes: Clark, Anderson, Dunham No: Amberg, Valdatta, Branson, Shafer Items Postponed from Previous agenda Resolution 2004 -89, authorizing the city manager to pursue final environmental permits for the North Forest Acres Levee/Road Project, authorizing an increase in the contract with William J. Nelson & Associates in the amount of $24,681.45 for final design, and appropriating funds. Motion (Anderson/Valdatta) Approve Resolution 2004 -89 (previously made August 9, 2004) In response to property owner comments earlier in this meeting, Shealy stated the ROW could not be acquired until after a route was selected. If this resolution were approved, the staff would issue an RFP for a professional to pursue the acquisition of ROW for the dike, therefore the city had purposely not negotiated for ROW yet. Shealy also pointed out a request for reconsideration that was in the agenda packet would be used in the event tonight's resolution was not passed. He had met with these various agencies and reported: ➢ The Department of Natural Resources (DNR) was agreeable with what the city wanted to try. They were not sure of the outcome but cautioned if the city forced the red alignment, it could go to an EIS based on the restrictions with other agencies. ➢ National Resource Conservation Service (MRCS), our sponsoring agency, indicated the cost of the remaining portion of the project was around one million dollars. They too would support the city's efforts but noted they had already published their approval for this project in the federal register, therefore were not eager to start the project over again. ➢ U.S. Fish & Wildlife Service indicated their agency would absolutely object to the loss of wetlands and force an EIS for the red line. They all along wanted the blue line and thought they were likely to get it if the City went through the EIS. ➢ National Marine Fisheries Service (NMFS) was very outspoken on his agency's preference for the blue line and stated if the city pushed for the red line, they would ask for a denial and an EIS would be required. He felt that would be risky territory for the city. ➢ Corps of Engineers personnel were busy and couldn't be reached in time for this report. Their duty was to ensure other agencies respond to permit requirements and restrictions. City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page453 Shealy summarized that none of the agencies contacted were delighted with the compromise reached, but agreed to honor the decision negotiated by the Finance Director. The next step would be to authorize the contractor to finalize the design changes, incorporate flood gates in final design, eliminate re- routing of Japanese Creek, and have HDR finalize the alignment and revise the permit applications. Once permits were in hand, ROW acquisitions would begin. In response to a question by Branson, Shealy stated being listed on the federal register moved the city forward to get the necessary permits. The city would buy the right to go through the area, but not the land in fee title. Clark held up the first map shown five years ago, and thought someone should have contacted the major property owner to ask them what they would be interested in selling. They were not included in the design. The Corps' permitting notice showed 22 categories evaluated, but yet only 4 had been mentioned in work sessions. In response to Clark, Finance Director Kris Erchinger stated the agencies did not just change their mind. The green alignment was agreed on as a result of months and months of negotiating. The only difference about the green alignment was at one time the green alignment showed re- channeling of Japanese creek rather than flood gates. Some agencies had issues with re- channeling the creek based on the Clean Water Act which was previously explained by Robin Reich. Erchinger continued to explain mitigation of erosion issues, buffer zones, flood plains, down to how swift the water ran for fish habitat. Dunham felt this was a mess created by the state 35 years ago. The city began to work on this process when money was available. He thought it was frustrating to listen to the agencies on habitat and fish, but they were not concerned when the stream meandered and was allowed to do so in earlier years. It was his opinion the red alignment was the only one that made any sense and did not appreciate the threat of blackmail forcing the environmental impact study (EIS). Dunham thought it was time to involve the congressional delegation. Although Amberg agreed with everyone that the red alignment was best, she felt the EIS was not a threat but a fact. She noted whatever alignment was chosen, it would be going through private property. It was time to move forward not backward, and an EIS would be costly. Clark appreciated the city manager contacting all the agencies and Mr. Seaberg for exploring a land purchase by the Kachemak trust. Shafer established the city had people who worked hard on this project and acknowledged it was a good possibility the community would risk this, and be left with the blue alignment, therefore she could not vote against this. Motion Failed Yes: Branson, Amberg, Shafer No: Dunham, Valdatta, Anderson, Clark City of Seward, Alaska City Council Minutes Asst 23, 2004 Volume 36, Page454 Council took a recess at 9:21 pm. Council meeting resumed at 9:30 pm New business Resolution 2004 -90, requesting continued ferry service by the MN Tustumena and MN Kennicott. Shealy stated he had participated in teleconferences on the discontinuation of service of the ferry system to Seward, and would meet with Deputy Commissioner Briggs next week to oppose the elimination of this service. He thought the state was receptive to listening to the public comments. This resolution opposed the discontinuation and requested an EIS prior to implementing any changes. Motion (Branson /Dunham) Amendment (Branson /Anderson) Approve Resolution 2004 -90 Add wording to Section 1 "on the community of Seward" after words impact statement Amendment Passed Unanimous Dunham wanted council thoughts whether the Kennicott and Tustumena should be separated. Branson believed the Kennicott would go to Valdez bypassing Seward continually. Anderson was outraged by this bypass and thought it a political issue. Seward was closer to the Southcentral road system than Valdez. Main Motion Passed Unanimous Resolution 2004 -92, authorizing the city manager to purchase a Volvo compact excavator EC- 15B, with cab and trailer, from Construction Machinery Industrial for an amount not to exceed $31,090.00 Shealy stated $35,000 was budgeted this last year to purchase this mini - backhoe. An RFP was issued and four companies responded. Part of the requirements were the crew would test out the equipment that best met their needs. They recommended Construction Machinery Industrial for $31,090 to meet those needs in the electrical department. Motion (Branson/Dunham) Approve Resolution 2004 -92 City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page455 Manager of Engineering Dave Calvert stated this backhoe had two buckets. He was sure it had at least a one -year warranty. This was a small backhoe used for the specific purpose to reach tight spots and dig. Motion passed Unanimous Other New Business Items Mayor Shafer appointed Willard Dunham to collect and tally the city manager, city attorney and city clerk evaluations and set the time due as September 7. Discussion of requirements of the Stranded Gas Development Act in regards to making natural gas available to meet state demands. Dunham urged the city to familiarize themselves with these issues so Seward could be involved. He noted the committee was working hard to have a firm resolution for the legislature this fall. A joint work session with PACAB was scheduled for Thursday, September 16 at 7:00 pm. to discuss the East Harbor Expansion. Motion (Dunham/Clark) Give direction to city manager to seek red alignment as an alternative to the Forest Acres levee project. Motion Passed Informational items and reports — None Council comments Unanimous Anderson thanked all who responded to the plane crash and thanked Karen Corrigan for sending an email pointing out using the Port of Seward for promoting more Stryker economic activity. She appreciated citizens looking out for the best interests of the town and was also looking forward to the work session with PACAB. Clark appreciated the correspondence from the public in the last few weeks. He said the Salmon Derby was great this year and wished all candidates running for city office good luck. Valdatta noted that Seward had pursued the Stryker hard in the past, and thought the Chamber had put on a good salmon derby. City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36 Page456 Branson applauded the marvelous performance by the young group of Seward dancers who attended the recent dance festival in Korea. Last winter the city met with Stryker and they stated they would keep us in their reserves. Dunham thanked all the salmon derby volunteers and especially the harbor crew for assisting on the north launch ramp. He felt the time had come to seek a solution to fixing the Lowell Point Road. Dunham also hoped the city would work with the Alaska Railroad on their upgrades and their requests of the city. He urged the public to vote and to pay attention to school issues, and summarized recent course and teacher losses within the district. Shafer thought the Salmon Derby was great. She shared a gift of a gold ship sent by the Mayor in Yeosu City Korea which was now on display in the clerk's office. She attended the Alaska Conference of Mayors in Kenai and was moved by the communities who had been so adversely affected by state cuts. She explained programs in Seward that had been recently cut. The saddest most disturbing was listening to rural villages with extremely high costs. Although Seward had absorbed such cuts in the past, it could no longer do so. Shafer stated it was important to let people know what was happening within this state. The only way to change was to pressure the people in Juneau. People were going to have to fight the legislature for their communities to break the logjam. Citizens' comments Stu Clark, commended the Mayor for making that statement. He had been watching state finances deteriorate. It was time for citizens to speak up and break the logjam. Clark observed how hard it was for communities to exist in this environment. Dorene Lorenz, commended the council on making the hard decision of choosing to go back to the table and pursue the red line. Linda Clayton, had went to all of the meetings on the ferry service over the years and appreciated the council pushing now since she did not feel the city was at the table three years ago. She did not think the resolution should split the Kennicott and Tustumena. She noted trucking companies and Seward Laundry would suffer greatly without this service. Tylan Schrock, thanked council for their decision on the levee. He thought the reconsideration page written by the administration was well written. Schrock publicly appreciated Fire Chief David Squires for his community sacrifice and hard work. He knew losing people in accidents affected a person emotionally. Schrock also supported the Chamber of Commerce and thought the new director was doing a fantastic job. Nina Daley, was puzzled on the decision with Ordinance 2004 -01. She expressed that the bigger the setback the more stuff one could put in it. If council thought there was a safety issue, she expected to see a resolution recommending an increase of setbacks in some other zones. Council and administration response to citizens' comments City of Seward, Alaska City Council Minutes August 23, 2004 Volume 36, Page457 Anderson did not want the city to take a soft approach on the Tustumena and stressed the city should go to Juneau with this resolution and ask for answers. Dunham had heard the improvements in Whittier had to do with the fast ferry. Valdatta stated the National Parks were the biggest benefactors of the Lowell Point road with all the property they had, he thought the Borough should contact them to kick in money to help fix it up. Adjournment The meeting was adjourned at. 10:25 p.m. — Q Je Lewis City Clerk 0g�:. -�y' � Or 0 r s • moo •.� :M (City Seal)0" C q1 • �� � V • 1:� kl • � a•I] !A • y 'n NV ff T • IIW :YB • m J YA y`�i • O M tf � ��� • fy t OF PN- Vanta Shafer Mayor City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page458 Call to order The September 13, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Bob Valdatta Margaret Branson Margaret Anderson Linda Amberg Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent —None Special orders, presentations and reports Proclamations and Awards A proclamation recognizing those involved with the Rugged Island bay rescue on Sept. 4 th Borough Assembly Report. Borough Assembly Representative Ron Long stated they had a short agenda on the 7 They passed an ordinance introduced in February to amend procedures for Board of Adjustment hearings in their code. Each side would now have an opportunity to address the Assembly. Birch and Grouse Ridge subdivisions were approved. The Sterling highway as a Scenic Byway was addressed again. Long voted no because of the vast opposition to it. A Borough surplus sale was authorized for September 25. In response to Anderson, Long stated the byway was proposed from Skilak Loop Road to Anchor Point. Opposition cited government regulations, land taking, etc. City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page459 City Manager's Report. City Manager Phil Shealy displayed a map showing land ownership on the hillside of Seward per council member Dunham's request. He advised Steven MacSwain would have appraisals completed for the city shop September 27, and he would present thereafter. Shealy thought the Rotary club would be replacing the lagoon boardwalk as a project and the pavilions would hopefully be replaced by the Waterfront Study through the Park Service. Funds should be available by the end of the year and he would know then what restrictions may be placed on it. In response to questions, the total repair cost of the North dock would be around 10 million. The lumber mill area was being cleaned up and should be completed in the near future. City Attorney Report. City Attorney Cheryl Brooking reported from July 1 through August 20` They assisted with the usual drafting assistance, administrative, BL issues, code and ordinance amendments, election issues, hatchery issues, and zoning and land use requirements. They worked with boat harbor lease and sale matters, and helped obtain EDA funding for the East Harbor expansion. Brooking took time to update the council of several laws passed at the last legislative session that may affect the public and municipalities. Some were; election procedures regarding municipal initiatives and referendums, state agency regulations, making voter and PFD information confidential in 2005, restaurants identifying farmed verse wild fish, taxes used for economic development, municipal tax collection after annexation, salmon seiner permits, arbitration law, special elections instead of appointing U.S. Senators and Representatives, landlords maintaining smoke and carbon monoxide detectors, unfair trade practices, motor vehicle insurance, changes to the electronic transactions act, and more. School Board Report. - None Other Reports, Announcements and Presentations. Presentation by the Seward/Bear Creek Flood Service Area Advisory Board by Tina McLean. P &Z liaison report by Margaret Anderson. PACAB liaison report by Vanta Shafer, Citizens' comments on any subject except those items scheduled for public hearing. - None Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page460 The following was added to the agenda: A discussion on the eligibility of council candidate David W. Hettick. A discussion on recent meetings with the Alaska Marine Highway System about ferry service. Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -94, re- appropriating $2454.20 unspent in FY 2003 for the purchase of an Astro Spectra Mobile Radio Unit. Public hearings — None Unfinished business - None New business Resolution 2004 -93, authorizing the city manager to execute a grant agreement between the State of Alaska and the City of Seward in order to produce the Seward Historic Preservation Plan, phase III and appropriating funds. Shealy said the state had awarded the city a grant to produce an updated Seward Historic Preservation Plan. This resolution established criteria and prioritized objectives, and raised awareness of Seward history and preservation. The total cost of the project was $27,500. After the federal share, the local match would be $11,000. Shealy stated the funds would have to be taken from the general fund fund balance. He thought possibly the scope of the project could be reduced. Motion (Anderson /Branson) Approve Resolution 2004 -93 Anderson was concerned there was no money available and did not think the city was in the position to go forward with it at this time. Valdatta thought 182 structures was alot for a town this size. Rules suspended to allow Commissioner Tom Swann to speak Unanimous Swann stated the intent was to conduct an inventory of all historic buildings in town and to produce a database. He informed council that the Historic Preservation Plan had not been updated in ten years. City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page461 Motion (Amberg/Branson) Postpone Resolution 2004 -93 until November 1, 2004 regular city council meeting. Motion Passed Unanimous Resolution 2004 -95, authorizing the city manager to enter into a maintenance agreement with the State of Alaska to maintain improvements to be constructed by the State of Alaska on the city's portion of Nash Road between mile point 1.9 and 5.3. Shealy offered that the city had been working with DOT to improve Nash Road for some time. He anticipated the project would be awarded this fall on receipt of this agreement, with construction to begin from MP 0 to 5.3 next year. The State would conduct the improvements on Nash Road with no cost to the city if the city would maintain their portion of the improvements from MP 1.9 to 5.3. The financial impact would be around $10,000 a year for maintenance. Motion (Dunham/Branson) Approve Resolution 2004 -95 In response to Branson, Shealy stated the $10,000 figure only covered maintenance such as guard rail repairs, ditching, signs etc, not snow removal. This was an estimated cost. Manager of Engineering, Dave Calvert stated it should not cost much in maintenance for the first few years, but there would have to be some chainsaw work soon. Motion passed Unanimous Other New Business Items Discussion on Annexation. Anderson wanted a simple questionnaire disseminated to get public input. She thought this could give people an opportunity to comment and wanted the questionnaire handed out at the polling place. Amberg remembered further discussion on annexation was tabled until after the election. She was not willing to take time and money unless the questionnaire was made simple and inexpensive. It was her idea to maybe put a sample questionnaire in the Phoenix Log. Amberg felt annexation did not appear feasible money wise at this time and reminded council that Lowell Point did not want this to happen because it could tie up their grant money. Dunham and Branson agreed to put a questionnaire out. They thought comments would be good. City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page462 Valdatta offered it could be a project for the Government class to look into. City Manager to work with council to produce a questionnaire on annexation for circulation. Second discussion on the requirements of the Stranded Gas Development Act resolution. Dunham discussed that the committee found you could not have a blanket resolution for both construction and revenue after it was built. The producers and principal owners of gas said the State would have to provide 128 million dollars in highway improvements, including 38 bridges, at least two years before the gasline could start. Dunham informed that it would take 20 mills to cover all groups and tax structures. Seward's portion would be 3 mill. A large portion of the construction would go over government property which the city did not have a tax base for. He questioned whether Seward would have an increased cost. Prorated shares had yet to be determined, but the report would be finished by the end of October. Dunham hoped council had been reading the information on this gasline, and thought this could result in huge amounts of money for the community with Seward being one of the two ports. A work session was put on the September 27, 2004 city council meeting agenda to be scheduled, once the basic outline for a resolution was completed. Discussion on Statewide Transportation Improvement Program (STIP) nominations for 2006- 2008 which are due by October 8, 2004. Any additional comments on STIP would be due by next week. Discussion on David Hetticks' eligibility to run for city council. Anderson had discussions with many people within the community on Mr. Hettick's candidacy for council. The public felt he was not eligible to run because he lived outside city limits. She was concerned with a close election, if this was not looked into, it could cause the election to be contested and invalid. She requested an investigation by the city attorney and city clerk to report back by September 27. City Attorney Cheryl Brooking stated the code was specific on what to do after an election, but not before. Council was the judge of the qualifications of its members. Motion (Anderson /Amberg) Request the city attorney and city clerk conduct a fact finding investigation into the eligibility of David Hettick as a candidate for city council and report the findings back at the September 27 city council meeting. City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page463 Valdatta thought if this was found fraudulent, the city should try and get their expenses because it was not fair to the tax payers. He questioned the eligibility himself. Brooking stated if he was found not qualified, failed to withdraw on his own, and it appeared intentional, the city may have a cause of action to recover its costs. Anderson stated this also gave Hettick an opportunity to elaborate his position. Motion Passed Unanimous Discussion on the ferry service meeting. Anderson asked for this to be added to get feedback and thoughts on the meeting that was here in Seward about this issue. Shafer felt positive the schedule would not be put into effect until the final decision was made and they did say it was not final yet. Valdatta felt the numbers were erroneous. It was a long connection from Valdez to Homer just to load freight and it would burden truck drivers unnecessarily. Anderson was concerned Seward was being left out of the loop and needed a voice on the local transportation board. She noted they were advertising for a vacancy on this board. Dunham thought the whole town needed to rally behind this because it was a serious situation. Branson thought the figures were erroneous also because of all the vehicles that were always in the hold. House Representative Paul Seaton was glad to see they agreed not to implement the plan, and was pleased with the town participation. He was encouraged with the change in attitude in scheduling. He was disappointed to lose the argument linking the scenic byway loop since the Borough Assembly voted that down because of opposition. It was part of a marketing plan to maintain the loop from Seward to Homer to Kodiak. Since the dock was not owned by the state, the city would need some concessions from the Railroad to bring operating costs down. Seaton stated federal funds were applied for in 1997, therefore a Plan had to be developed. This was filed with the Federal government to secure funding for ferry improvements. This would have to be a modification to that Plan. Informational items and reports Land ownership maps handed out. City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page464 Council comments — Branson had a complaint of herds of wild rabbits running through Forest Acres eating all of the gardens. Also she spoke with a retired biologist that visited the waterfront campground and was very impressed. He thought it was one of the nicest he had ever been to, and complimented the town, facilities and the people he came in contact with. Dunham also had a call about the rabbits. He received a compliment from one of the Riverdance troupe from New York that was impressed with the community and wanted to spend more time here. He thought the radio equipment and dispatch area remodel would be a good candidate for a community excellence certificate with AML since it had brought 1.2 million in improvements. Citizens' comments Tim McDonald suggested people eat the rabbits. He wanted to see a plan for the mile 0 -8 project because he was concerned they would not improve the Nash Road turnoff. This intersection was a dangerous place to pull out onto the highway. McDonald had other suggestions for revenue sources. A modest head tax on cruise ships, since these companies basically used their own buses, hotels and boats for vacation packages, and tax ships that passed over the city tidelands. Ron Long stated as a second class borough, unless there was a specific place in the code that either granted area wide power or elected more service on an area, then they did not have the authority to prevent some of the damage. Since voter action last fall, the Seward/Bear Creek Flood Service Advisory Board did have the legal authority to implement recommendations of that Board. All of the funds generated stayed within this tax area, and they hoped to build a reserve. Long pointed out that on the STIP program, it listed the funding priorities and reasons for the East harbor expansion. Council took a recess at 9:35 p.m. Council resumed at 9:42 p.m. Council and administration response to citizens' comments Valdatta agreed with McDonald to pursue charging ships for crossing tidelands. Go into executive session for purposes to discuss a subject that may prejudice the reputation and character of a person. The person who council would be discussing, Historic Preservation Commissioner Dorene Lorenz, requested the executive session be held in the public. Shafer began by stating the executive session was to discuss inappropriate contact and emails that were being sent by Historic Preservation Commissioner Dorene Lorenz to Michael Insalaco, dba City of Seward, Alaska City Council Minutes Septemberl3, 2004 Volume 36, Page465 Northwind Tech, who was the contractor of the City of Seward who was hired to design the website for the Historic Preservation Commission. Ms. Lorenz was sent a letter August 13 informing her to cease any communications with him. Upon hearing of this, a document request was given to the city clerk's office for copies of these emails. Shafer recapped what she saw in some of the correspondence. Some concerns council had were: using the website and use of an appointed position for personal economic gain, unprofessional conduct reflecting on the city, profanity and unprofessional tone in emails, acting independently and not as a commission, and attempting to supervise the city planner without going through the city manager. Some of these appeared to be city code, charter and conflict of interest law violations. Valdatta wanted to know if the contractor was doing his job or behind schedule. Branson reminded that this contractor was hired by the city, not an outside source. Anderson stated being a strong city manager form of government protected employees from outside abuse. Not going through the proper channels opened the city for litigation. Shafer thought this violated the oath of office all appointed and elected officials took. Clark interpreted the emails in a different way. It sounded like Ms. Lorenz was the person designated to help with the website. Motion (Anderson /Branson) Motion Passed Motion (Dunham/Amberg) Motion Passed A letter be sent issuing a strong warning to Commissioner Lorenz outlining the items of concern and requesting behavior improvements, and stating the Historic Preservation website when finished was owned by the city of Seward and could not be used for financial gain. Unanimous Direct the Historic Preservation Commission to investigate the accountability of the Fireside DVD sales and report back to council. Unanimous Go into executive session to discuss city attorney, city clerk and city manager evaluations. Motion (Dunham/Branson) Go into executive session to discuss city attorney, city clerk and city manager evaluations. City of Seward, Alaska City Council Minutes Septemberl3, 2004 volume 36, Page466 Motion Passed Unanimous Council went into executive sessions about 10:10 p.m. Council came out of executive sessions 10:48 p.m. Adjournment The meeting was adjourned at10:49 p.m. Je Lewis CiVy Clerk �L Vanta Shafer Mayor sOI tItitIII# . % (City Seal) o ,�m °�.. ®F S.k, • �®n 0. VL b � City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 467 Call to order The September 27, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Margaret Branson Linda Amberg comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent —None Special orders, presentations and reports Proclamations and Awards Bob Valdatta Margaret Anderson Kevin Clark Retirement proclamation and gift certificate presented to Marilyn Sutherland for 22 years of dedicated service to the City of Seward. Borough Assembly Report. Borough Assembly Representative Ron Long was not present. City Manager's Report. City Manager Phil Shealy stated that the meeting with Governor Murkowski was interesting. The Governor toured the Shellfish Hatchery and Alaska Sealife Center while he was here. In response to Valdatta, Shealy informed the original truck for the electric department was cancelled due to Dave Calvert's absence and he was not sure what type of truck they would be proceeding with, but it would not be what was originally proposed. Other Reports, Announcements and Presentations. - None City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 468 Citizens' comments on any subject except those items scheduled for public hearing. Tim McDonald, wondered if the city manager had any contact with the Railroad on using their property for a bypass road. He thought a road was needed for trucks to bypass our new road infrastructure on Port Avenue. He urged the administration to speak with the Railroad. Sandy Wassilie gave a brief report on the school district. Two teachers were recently called to duty in Iraq. At their last meeting they had spent a lot of time on the Alaska Association School Board resolutions. These resolutions provide the platform to articulate issues statewide to the state legislature. The re -write of the foundation formula was one of the big issues that came up. Co- curricular activities would continue to be supported, but with budget constraints it would not be to the level of the past. Wassilie stated enrollment was above projections with 300 district -wide and 21 locally. Wassilie was also appointed to a committee to review the career and technical education curriculum courses and they would begin their review in October. Dale Hoogland, encouraged the administration to pursue the red route in the Forest Acres levee project and thought Kachemak Land Heritage should be contacted to have a greenbelt area to go hand in hand with this project. Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Ordinance 2004 -02, amending the Seward city code to change the publication of notice of regular elections from 30 days to 20 days making it the same requirement as the state statutes. Election board workers of Carol Griswold, Jean Bardarson, Jean Cripps, Jeanne Galvano and Betty Casey were approved and appointed for the Borough and Municipal Election October 5, 2004. Canvass board workers Kim Reierson, Lori Draper, Jackie Campbell and Betty Hatch - Gillespie, were appointed and approved for the Municipal Election October 5, 2004. The November 8 regular scheduled city council meeting was changed to November 1, 2004 due to AML the week of November 7 -11. The August 9 regular city council meeting minutes were approved. Public hearings City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 469 Resolutions requiring a public hearing Resolution 2004 -96, terminating leases RE -67 -038 and RE -84 -037 and authorizing the city manager to enter into a new lease agreement with Juris Mindenberg for Lot 3B, Block 1, Marina Subdivision. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Juris Mindenburg, stated he would be building onto the Breeze hm to the North. He wanted to combine two lots into one lot and re -write the leases to make it one lot. Mindenburg had plans to add a conference room, lobby and a few rooms. The lease would move to a 30 year period to obtain financing. Phil Shealy stated Mindenburg was current on all taxes, insurance and required paperwork. This lease generated annually $46,000. He recommended approval. Motion (Dunham/Valdatta) Approve Resolution 2004 -96 Shealy stated a 30 year lease was the most the city could go under the Charter. City Attorney Cheryl Brooking wanted council to know this lease still had to go through the platting process. Motion Passed Unanimous Unfinished business -None New business Resolution 2004 -97, accepting a Denali Commission federal financial assistance award in the amount of $1,600,000 for the purpose of funding planning and design for the replacement of the long -term facility and appropriating funds. Mayor Vanta Shafer declared a conflict of interest and abstained. Shealy stated in 2003 the state intervened and asked the city to accept responsibility for operating and managing Wesley Rehabilitation Center to avert closure of the facility by the federal government. The city accepted and May 2003, entered into a management and operating agreement with Providence to manage a co- located hospital and long -term care facility. In June 2004, representatives from the Denali Commission visited Wesley and later awarded 1.6 million to fund planning and design for that replacement facility. Shealy stated there would not be a local match, and the Commission was not intending to assist with financing of construction of the facility. Shealy informed the City would be pursuing revenue bonds to construct the facility. City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 470 Motion (Branson / Amberg) Approve Resolution 2004 -97 In response to questions by Valdatta, Shealy advised that although the Denali Commission would not participate in the construction of the facility, this should not keep Seward from acquiring funding for other projects. Finance Director Kris Erchinger informed the council that the laydown version of the resolution clarified wording in the first paragraph. In response to questions by Anderson, Erchinger stated the original intent was to have the facility replaced by the end of 2006 to qualify for reimbursement through Medicare and Medicaid. The rates for the facility were being re -based on actual expenses incurred in 2006. The goal would be to get the construction costs included to receive reimbursement. In the event the city was not successful, they would request an extension of re- basing of rates. It would then be up to the Department of Health and Social Services whether the city would receive that reimbursement or not. Motion passed Yes: Clark, Anderson, Amberg, Dunham, Valdatta, Branson Abstain: Shafer Other New Business Items Discussion on the North dock. Council member Clark brought this up because of the newspaper article which showed Ketchikan receiving state funding for their shipyard. Harbormaster Scott Ransom stated the Corps of Engineers were pursuing a 107 Section continuing authority program, and conducting a reconnaissance study with $100,000 they had. They had requested more information to show loss of vessels that had occurred over the years due to the North dock. The harbor would be compiling data and if the Corps saw that there was a need, they would return to continue a design phase. There would be a 50150 match required but it could be possible to reduce that by geo -tech studies. Shealy stated the reconnaissance study was in the long range legislative priorities and the city would try to pursue that. In response to questions by Branson, Ransom stated this would enclose the area by the North dock. The money would just be used to correct the problem. It would not correct the fendering system or repairs needed to the actual dock. Anderson was in favor of this study because the constant surge of waves rendered the North dock unusable. A breakwater would provide more space for larger vessels and could be tied into the ship repair. City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Pace 471 Clark did not feel the state should be subsidizing one shipyard and not the other. Anderson reported the Ketchikan facility was owned by the State. Harbor master Scott Ransom thanked citizens DJ Whitman and Doug Lechner for helping to compile data on the shipyard area. A work session on the Stranded Gas Act was scheduled for Thursday, October 21, 2004 at 7:00 pm. Results of city attorney and city clerk investigation into qualifications of council candidate David Hettick. City Attorney Cheryl Brooking and City Clerk Jean Lewis recapped the results of their investigation which were included in the agenda packet. This investigation was generated by many citizen complaints to the Clerk's office and City Council. The main authorities cited were Charter 2.2 and SCC 2.10.010 which addressed eligibility to file for elective office. Although Mr. Hettick maintained his residency within the city limits throughout this period, fact finding showed: ➢ 3302 d Avenue was owned and utilities paid by David and Lynn Hettick. ➢ David Hettick had been a registered voter within the city of Seward since 1997 showing the above as a residence address. ➢ Hettick signed a declaration of candidacy on 8/16/04. ➢ KPB records showed when Mr. Hettick filed for a liquor license in January 2003, he testified his family lived at the location of the liquor store in Woodrow Subdivision. ➢ KPB records showed the $10,000 property tax exemption for 2004 was claimed on the residence of Woodrow Subdivision not 330 2 n Avenue. ➢ In August 2004, the Hettick's filed to change their $10,000 tax exemption to 330 2 nd Avenue. This would not go into effect until 2005. ➢ A copy of a rental agreement from the Alaska Sealife Center showed a month -to -month tenancy of 330 2 nd Avenue signed by David and Lynn Hettick on 4/9/2003 effective through September 15, 2003. ➢ One citizen affidavit stated their ex- husband and son were currently living in 330 2 n Avenue. ➢ An affidavit by the school district bus coordinator which stated the Hettick children were picked up and sent to the home in Woodrow Subdivision, not 330 2 nd Avenue for at least the last year. Rules were suspended. To allow David Hettick to speak. Motion Passed Unanimous Hettick explained that Nathan Orr was not renting the house, he was repairing it. He felt he was legally able to run for council. Hettick agreed he spent a lot of time at his wife's business out of town and that he worked there. He would be moving back in town in another month after work and City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 472 construction were over. Hettick stated the Sealife Center rented part of the house not all of it, and just because his summers were spent at the RV Park, that should not disqualify him. Rules were suspended. To allow Nathan Orr to speak. Motion Passed Yes: Clark, Dunham, Branson, Amberg, Valdatta, Shafer No: Anderson Orr felt his statements were being misrepresented by the city attorney, so he came in to clarify. He maintained he was not renting the residence at 330 2 "d Avenue and was only occupying part of the premises for a few months while his house was being finished. Orr stated the house was furnished and all dishes and belongings in it were the Hettick's. Council member Anderson thought all candidates were qualified but the issue was eligibility and per the code Hettick was simply not eligible to run. Valdatta supported their liquor license request when it came up for Borough approval, and he understood the RV Park was the primary residence at the time. Amberg deciphered the code wording stated "continuously." That had not occurred in this case. Dunham acknowledged the overlapping was a small period of time and asked the attorney what kind of legal mess this put the city in. Brooking stated there would be an issue of two different ballots. The votes for that candidate only would not count. Motion (Anderson/Branson) David W. Hettick is not eligible to file for an elective city office because he has not resided within the city boundaries continuously for a period of less than 1 year immediately preceding 8/16/04, and further instruct the election board not to count any votes for David W. Hettick in the October 5, 2004 election. Motion Passed Informational items and reports Unanimous Preliminary 2005 budget calendar. City of Seward, Alaska City Council Minutes September 27, 2004 Volume 36, Page 473 Hospital financial reports for May, June, July and August 2004. Council comments Amberg was looking forward to Mr. Hettick being eligible to run for the next election. Anderson thanked the Port City Players and the Alaska Railroad for the Arts and Music Festival. Valdatta had an idea that Boulder Field could be back - filled with dredge material from the harbor dredging project since it was three feet low. Branson stated that Linda Murphy was teaching parliamentary procedures and requested council attend to smooth out their procedures. Dunham reminded all it was National Family Day. He wanted a work session or special meeting on the STIP list, and agreed the Festival was great. Shafer stated it was nice the Governor was in town for the weekend. She overheard positive comments on the Shellfish Hatchery. Citizens' comments Tim McDonald, commended council member Branson for asking people to attend the parliamentarian training. The rules seem to be unfair that people must ask to speak out of order. He would take Branson's advice and attend the training. Sara Nan, was mystified council believed the testimony of a bus driver and an ex -wife in determining Hettick's eligibility. She had been Hettick's neighbor since 1998. Nan read a couple of paragraphs from the state statutes and thought Hettick's residing elsewhere was temporary and he had the intent to return. She was sure the Sealife Center had vacated the premises August 14th. Rick Blythe, apologized for not making it in time to give the Chamber of Commerce report. He was at an information session for businesses interested in submitting programs and excursions for next year's Norwegian Cruise Lines port-of -call. The memorandum of understanding between the city and the chamber should be on the next agenda. There were four Chamber Board positions opening next year and they were drafting their preliminary budget. Dale Hoogland, wanted to know how far the city had gotten on the Forest Acres levee project and wanted to know if there was anything the citizens could do. Doug Olsen, questioned the amount of money the long -term care facility would require to build. He thought it was an incredible amount of money for a small city and was concerned with future contracts with Providence. City of Seward, Alaska City Council Minutes September 27, 2004 volume 36, Page 474 Council and administration response to citizens' comments Clark clarified he did not find David Hettick ineligible because of hearsay. He made the decision because the Charter spoke of residing continuously. Dunham commented the figure was 3 million for the care facility, not 8 million as mentioned by a citizen earlier. Valdatta felt 1.6 million was a stiff figure to design the long -tern care facility building. Go into executive session to discuss personnel issues which as a matter of law are required to be confidential. Motion (Dunham/Branson) Go into executive session to discuss personnel issues which as a matter of law are required to be confidential. Motion Passed Unanimous Council went into executive session at 9:00 p.m. Council came out of executive session at 9:30 p.m. Adjournment The meeting was adjourned at 9:31 p.m. Jean ewis City Clerk _�L Vanta Shafer Mayor (City Seal) 0 , 0 ��iei����� o ® � s e 6v0 � ®o . .GpP40T,'� b � \� �.. V•i N 4• • � N 11111111100 City of Seward, Alaska City Council Minutes October 1, 2004 Volume 36, PaAe475 Call to order The October 1, 2004, special meeting of the Seward City Council was called to order at 11:00 a.m. by Mayor Vanta Shafer. Opening ceremony City Manager Phil Shealy led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding, and Margaret Branson Willard Dunham Linda Amberg Kevin Clark (Tardy) Bob Valdatta comprising a quorum of the Council; and Phil Shealy, City Manager Erin Leaders, Assistant City Clerk Citizens' comments on any subject except those items scheduled for public hearing. DJ Whitman, spoke in support of adding the North Dock and dock breakwater to the STIP project list. Approval of agenda Motion (Branson / Amberg) Approval of Agenda Motion passed Unanimous Tardy— Kevin Clark was tardy; he arrived just after the approval of the agenda. Unfinished business - None New business A. Other New Business 1. Additions or nominations for the 2006 -2008 Statewide Transportation Improvement Program (STIP). City of Seward, Alaska City Council Minutes October 1, 2004 Volume 36, Page476 City Manager Phil Shealy stated administration would be meeting with DOT next Tuesday. Shealy reminded council the recommended STIP projects would be due by October 8 "'. hi addition to the 2004 -2006 STIP highway projects, there would be some other projects for council to consider. ➢ Legislative priorities this year had an item of $4.5 million for dock breakwater at SMIC. The administration was hopeful the Corps would fund the breakwater before the 2006/08 STIP period. Even if the Corps came through on the breakwater, the City would still need money to repair the North Dock so that should be included in the STIP. ➢ Shealy suggested council consider adding a grant to the STIP that had been applied for a few times in the small boat harbor for $3.5 million in improvements to rebuild lift dock, t -dock, bulkhead in the northwest corner, the travel lift dock and a new travel lift. Discussion In response to Mayor Shafer, Shealy stated the addition of north dock and repairs in the small boat harbor should be under harbor and related activities of the STIP for the year 2006. In response to Council Member Margaret Anderson, Shealy informed a letter had been sent to DOT requesting a reduced speed limit by Nash Road. The DOT had responded with a letter stating they would eliminate the 55 mile an hour speed limit for that section of the road, but no change had been made at this time. Shealy intended to ask DOT on Tuesday why the speed limit had not been changed and when they DOT planned to put that change into effect. The other improvements on 0 -8 would be completed next year. Discussion ensued regarding various state and borough issues. Council unanimously agreed to give the City Manager direction to add the following projects to the 2004 -2008 STIP: ➢ Lowell Point Road. ➢ Mile 18 -25.5 - Snow River to Trail River (push up on the STIP list for 2006) ➢ Mile 25.5 to 36 - Trail River to Sterling Wye (push up on the STIP list for 2006) ➢ Add North Dock extension and breakwater construction. ➢ Small Boat Harbor expansion/improvements. 2. Discussion and direction given to conduct an economic study for Seward on the Alaska Marine Highway System. City of Seward, Alaska City Council Minutes October 1, 2004 Volume 36. Paze477 Shealy reported earlier in the week the matter of the Tustumena was initiated in the form of a recommendation from Commissioner Tom Briggs and the Marine Advisory Committee. Recently the commissioner stated the Tustumena would remain in Seward for another year. Shealy had asked about the Kennicot and was informed it would in fact be going to Whittier although they did not have a dock yet. A dock was expected to be built within the year. Shealy felt the City of Seward had a good chance of retaining the Tustumena even after next year assuming the City participated in an economic study and it turned out favorable. Depending on the scope of the study, the cost for the City of Seward to conduct an economic study could be anywhere from an estimated $7,500 - $12,000. John Torgeson with the Alaska Marine Highway System (AMHS) had indicated to Shealy the AHMS would be willing to participate in the study including doing ship board surveys and providing the base information for the study to take off on. The city would need to determine if their study would go into ancillary impacts such as amount of gas purchased, meals and restaurants or if they would concentrate primarily on the marine aspect of the study. Council unanimously agreed to approve a proposal for the economic study regarding the Alaska Marine Highway System. Council comments -NONE Citizens' comments D.J. Whitman thanked council for adding North Dock and Small Boat Harbor Improvements to the STIP. Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at 11:35 a.m. Jean' ewis City Clerk V P (City Seal), C9` tr • A. n rt• r q • y M r. r �) • • L M 8s Vanta Shafer Mayor City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, Page478 Call to order The October 11, 2004, regular meeting ofthe Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Margaret Branson Linda Amberg comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent —None Special orders, presentations and reports Proclamations and Awards Bob Valdatta Margaret Anderson Kevin Clark A Domestic Violence Awareness Month Proclamation was read. Borough Assembly Report. Borough Assembly Representative Ron Long reported the Borough accepted and appropriated small grants and introduced and set for public hearing an ordinance to adopt the all- hazard mitigation plan. They failed to pass a resolution authorizing the assessor to use a lower rate on low income housing tax credit of complexes. In response to questions, Long stated there was an application process to apply for road service area maintenance and it occurred once a year in the fall. He added people would have to apply through a nomination process. Long also stated Lowell Point bridge was back on the STEP report. City Manager's Report. City Manager Phil Shealy reminded that budget work sessions were Tuesday through Thursday, October 12, 13, and 14. There were personnel changes of: Jenie Swartz was hired in the DMV job shared position, Erin Leaders would be replacing Marilyn City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, Page479 Sutherland in the Engineering Department, Butch Tiner was re- assigned as patrol officer and the Lieutenant and Building Inspection positions were advertised in the newspaper. ➢ The Forest Acres waterline was completed and in service. ➢ Proposals were due October 22 for local interest in running the bowling alley. ➢ The Senior Center elevator was fixed. ➢ The police department would be moving back into the newly renovated dispatch area tomorrow with the radio tower to be completed next week. This project was sponsored totally with grant money, no local budgeted money. ➢ An annexation survey was presented for council review. ➢ Administration would be pursuing funding options on the harbor expansion. Of the 7.7 million dollar project, the city had the capability of 4.6 million with grants and bonding. This left a 3 million dollar shortage. ➢ Pursue creation of a citizen group to seek the red alignment. In response to questions, the city planner would not know of his deployment to Iraq until October 25, and his temporary position would be addressed in the budget. City Attorney's Report. Cheryl Brooking stated the attorneys had assisted with zoning ordinances, land use planning, platting requirement, election and candidate issues, and addressed railbelt utilities. Both Cheryl and Brad Meyen attended the Municipal Lawyers Conference in San Antonio, Texas and found the training and various issues valuable. Other Reports, Announcements and Presentations. P & Z liaison report by Margaret Anderson - Nothing to report PACAB liaison report by Willard Dunham — Nothing to report PowerPoint presentation by John Daley of Tryck, Nyman & Hayes on the design of the inner harbor improvements. Budget introduction by Finance Director Kris Erchinger. The four major capital projects identified for the city and the proposal to pay for them was: ■ Road improvements initiative. Implement 50150 with a 1 mill property tax increase and assessments. Hoped this would end up into a revolving plan for the future. ■ Third Avenue Watermain. This infrastructure was the primary waterline for Seward running from the Sealife Center to Napa, and was approximately 50 years old. This would be a 3.5 million dollar project, and the administration would be seeking grant dollars. State grant dollars were taken away this year so the city was planning on funding this project with a loan from DEC at 2.5% interest. She stated it would take an increase in fees from $24 to $31 a month to fund that project. City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36 Page480 ■ East Harbor expansion. Increasing lineal foot rate from $31.69 to $35.80 a lineal foot to fund 1 million dollars. Revenue bonds would fund most of the east harbor improvements. ■ Long term care facility. Revenue bond. Debt service repaid from the revenues generated from the facility with Medicaid and Medicare reimbursement rates. General Fund budget. Erchinger disclosed the city began with a 1.1 million dollar deficit this year, because of the following added costs over last years budget: ➢ PERS change in actuarials of $100,000. ➢ $150,000 added insurance costs in Workers Comp. ➢ repayment of hospital PERS debt of 2.1 million which had annual installment payments of $211,000 for 15 years. ➢ SMIC deficit of $250,000. ➢ The city assumed responsibility for new roads with an annual maintenance cost of $45,000. ➢ snow and ice budget increased by $35,000. ➢ budget increased by $20,000 for fire air packs. ➢ creation of the road improvement fund. ➢ loss of all state revenue sharing. Erchinger was able to balance the budget by the following: ➢ 1 mill property tax increase to set up the road improvement fund. ➢ Fund SMIC debt with resources from the electric utility. ➢ Increase the bed tax from 4% to 8% generating $215,000, setting aside 1% for conference center and marketing, 3% to general fund. ➢ Annual hospital PERS payment covered by money set aside now in the hospital debt service fund which was sales tax revenues that exceeded the debt service payment this year. ➢ Possibly implement a utility permit fee rather than increase property tax. Erchinger noted this was the 9 1h year in a row the city had been asked to hold the line budget or had budget cuts. Revenue enhancement ideas were also discussed. Citizens' comments on any subject except those items scheduled for public hearing. Stu Clark, congratulated the winning council candidates and thought the finance director had done a fantastic job at balancing the budget. It was apparent there was thinking outside the box. He stressed the State had really fell down on the job in helping municipalities. Clark proposed privatizing vehicle and street maintenance, and utilize the city shop area for other development. Tim McDonald, congratulated the candidates also. He cheered when on the news he found the Senate had finally passed the gas pipeline incentives. He noted PERS was costing a lot and City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, PaAe481 thought there was some serious inequity with that. McDonald also thought a co -op idea was good to privatize the electrical utility. Brad Snowden, stated he went to Juneau to the Pioneers convention. He found out from Alaska Airline pilots you only needed a 317 -foot ceiling to bring in 737's. He hoped that could be on the horizon. Ron Long, stated discussion of a community dividend would be on the AML agenda. He wanted council to finally nail the boat harbor plan down, and thought it was a good one. Jim Hubbard did not like the S curve in the harbor plan. Approval of agenda and consent agenda Motion (Branson /Amberg) Approval of Agenda and Consent Agenda The following was added to the agenda: Discussion and direction on who would attend AML. Motion passed Unanimous The clerk read the following approved consent agenda items: The August 23, September 13, and September 27, 2004 regular city council meeting minutes were approved. City council recessed at 9:10 p.m. City council resumed at 9:20 p.m. Public hearings Ordinance requiring a public hearing Ordinance 2004 -02, amending the Seward city code to change the publication of notice of regular elections from 30 days to 20 days making it the same requirement as the state statutes. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Shealy stated this change would give the city clerk more flexibility with newspaper deadlines, and they could not think of a downside to implementing this. He noted that both Homer and the Kenai Peninsula Borough had the same requirement of 20 days notice, and so did the State of Alaska. City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, Page482 Motion (Branson /Dunham) Motion Passed Unfinished business -None New business Enact Ordinance 2004 -02 Unanimous Discussion and direction given on the inner harbor improvements Amberg wanted to move on the recent plan proposed if X float could be moved toward Z float 100 feet. Anderson was concerned with the access to the T dock and the safety issue. Harbormaster Scott Ransom stated boats would raft 2 to 3 deep on X float until more slips were put in the East end. Motion (Amberg /Branson) Give direction to proceed with current plan but move X float up to 100 feet to the East. Motion Passed Unanimous Election Results for the October 5, 2004 municipal election. Motion (Dunham/Amberg) Certify the results of the October 5, 2004 municipal election and count the results below as final. Motion Passed Unanimous The election results for the October 5, 2004 municipal election were certified and entered onto the minutes as shown below: FINAL CERTIFICATE OF RESULTS FOR THE REGULAR MUNICIPAL ELECTION HELD OCTOBER 5, 2004 The City Canvass Board had completed their review of all absentee and questioned ballots of the Regular Municipal Election held October 5, 2004. Their totals were: City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, Page483 Report of Absentee and Questioned Ballots Absentee ballots voted 78_ Questioned ballots voted 5_ Special Needs ballots voted 5_ Total Voted 88 Rejected Not registered, registered too late 6 or registered out of City Form not completed properly 1 Signed/witnessed after election day Total Rejected 7 Counted Absentee 77_ Questioned 0_ Special Needs 4_ Total Counted 81_ The Election Day results, after canvassing were as follows: Mayoral seat Election Day Votes After Canvass Votes Total Votes Vanta Shafer 297 58 355 Tim McDonald 192 21 213 Willard Dunham 233 52 285 Margaret Branson 265 47 312 Write Ins 229 1 1 Three Two -year city council seats Election Day Votes After Canvass Vot Total Votes Walter Christolear 175 19 194 Stu Clark 158 32 190 Willard Dunham 233 52 285 Margaret Branson 265 47 312 Steven Schafer 229 31 260 Dorene Lorenz 267 28 295 Write Ins 9 3 12 City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36. Page 484 A total of 505 +88 =593 people voted at this election. Discussion and decision on who would attend the AML conference the week beginning November 8` Dorene Lorenz, Margaret Branson and Mayor Vanta Shafer would attend. Mayor Shafer appointed council member Valdatta to attend the Peninsula Economic Development District meeting at the end of the month. Informational items and reports Certificate of appreciation from the U.S.S. Howard during their port visit May 31 — June 3, 2004. Letter from Dept. of Interior, Fish & Wildlife Service on the Forest Acres Levee Project. 2003 campground season end report. Council comments Anderson congratulated the candidates who were successful and thanked the council for the opportunity to work with them for the last few months. She also thanked Kris Erchinger and the finance department. Anderson wanted to go after the Alaska Railroad and the state and had thoughts to require PILTs. She clarified taxes were brought forward by administration but voted on by council. Valdatta thanked all the voters. Amberg thanked Anderson for her contribution and congratulated the Mayor and other council members. Dunham also congratulated Seward Seahawks football on their success in the Greatland conference. He noted the new chandler from the University would be in town Nov 4 and 5ch. He also thanked the newspaper on running the story on the prison and bringing understaffing issues to the forefront now. He thought it was important to address before any expansion could occur and noted the bonds would be paid off 2006. He also offered congratulations to candidates. Branson thanked Ms Erchinger for coming up with a balanced budget despite difficulties. She thanked the voters for returning her to council and welcomed Willard and Dorene. She hoped the city was on track to have the boat harbor designed during her next term. City of Seward, Alaska City Council Minutes October 11, 2004 Volume 36, Page 485 Shafer stated she was honored to be voted in as Mayor. She was glad to see the incumbents back and welcomed Lorenz. Shafer announced more parks, bathroom cleaning, downtown bathroom, police officer in the schools, hour extensions, etc. had been added in the past years, and the city really had been doing more with less. Shafer urged the public to let council know what they were willing to live without. She finally beamed that she had the biggest and most beautiful grand baby ever born! Citizens' comments Tim McDonald, thanked Margaret Anderson for her service. He was not in support of raiding the utility fund to cover SMIC. He suggested again a co -op of the electrical utility to relieve the inequity of people who lived outside the city limits who could not vote in the elections. Tom Tougas, thanked council for passing the compromised harbor plan. He noted the most expensive float was Z float, and if funding was short, it was logical to put off funding for that float for awhile. Jim Hubbard, appreciated Ms. Amberg's concern with access into the harbor and the uplands issue off Z -float still needed to be addressed. Tim McDonald, thought shortening X float 100 feet could save money. Council and administration response to citizens' comments Valdatta did not see it as raiding the electrical fund. The community and employees were benefiting from having SMIC across the bay. Seward needed to seek permits and pursue the natural gas lines. He liked the idea to T into the west side of the peninsula. Go into executive session to discuss two matters which pertain to threatened or pending litigation Motion (Branson /Dunham) Go into executive session to discuss two matters which pertain to threatened or pending litigation. Motion Passed Unanimous Council went into executive session at 10:00 p.m. Council came out of executive session at 10:45 p.m. City of Seward, Alaska City Council Minutes October 11, 1004 Volume 36, Page 486 Adjournment The meeting was adjourned at 10:45 p.m. Je4# Lewis Ci Clerk Vanta Shafer Mayor (City Seal) o� u! c dam* .+.�- l� � g w ' J . may �g�1f71f19Sb'��'` City of Seward, Alaska Appeal Hearing October 12, 2004 Volume 36, Page 4 $$ Call to order Shafer. The October 12, 2004, appeal hearing was called to order at 12:00 p.m. by Mayor Vanta Opening ceremony Phil Shealy led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Bob Valdatta Margaret Branson Linda Amberg Came in 5 minutes late: comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — Willard E. Dunham Approval of agenda and consent agenda Motion (Amberg/Branson) Motion passed Hearing on Appeal Kevin Clark Margaret Anderson Approval of Agenda Unanimous Appeal by Dean Kasischke, dba Four Seasons Boat Services. The city had denied his 2004 application for a City of Seward business license on August 5, 2004. City Manager Phil Shealy stated this was a delinquent business license application that was denied on 8/5/04 for fail to get in compliance with Seward city code, namely the Kenai Peninsula Borough sales tax section. He reported Mr. Kasischke could not become compliant even after several extensions, and he had not received a Seward city business license since 8/3/2001. A notice to deny the business license went out to Mr. Kasischke, he did not appear for a hearing with the city manager, so therefore the business license application had to be denied. City of Seward, Alaska Appeal HeariRP October 12, 2004 Volume 36, Page 4 Q'7 Dean Kasischke stated he had been trying to secure a loan with his home as collateral through Alaska State Mortgage Company. He acknowledged he was delinquent on back taxes and requested a delay of 60 days to secure this loan. Kasischke noted he had been making payments to the Borough in the amount of $1,250 a month, and was current with recent filings. City Clerk Jean Lewis concurred he was current on his quarterly filings per the Kenai Peninsula Borough sales tax office. The Borough stated he was over $50,000 in arrears on past sales tax and was not eligible for a payment plan with them because of past payments missed. Lewis stressed that Mr. Kasischke's business license had problems dated back to at least 1997, with the last license issued by the city in 2001. Mr. Kasischke was also behind on lease payments with the city per the finance department. Go into executive session to deliberate and prepare findings of fact and conclusions of law. Motion (Branson /Amberg) Go into executive session to deliberate and prepare findings of fact and conclusions of law based on the above appeal presented. Motion Passed Unanimous Council went into executive session at 12:20 pm Council came out of executive session at 12:35 pm Motion (Branson /Amberg) Motion Passed Adjournment The meeting was adjourned at 12:37 p.m. The City Council, acting as appeal hearing on the denial of business license application for Dean Kasischke, dba Four Seasons Boat Service upheld the administration decision to deny the application for a business license, but will hold the decision for 60 days until December 12. Unanimous Vanta Shafer Mayor F n Lewis �. y Clerk' • °, tr'��; . t (City Seal) 3 . ,may • n The City Council, acting as appeal hearing on the denial of business license application for Dean Kasischke, dba Four Seasons Boat Service upheld the administration decision to deny the application for a business license, but will hold the decision for 60 days until December 12. Unanimous Vanta Shafer Mayor City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 489 Call to order The October 25, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Dorene Lorenz, Willard Dunham, Margaret Branson and Vanta Shafer were sworn in as the Mayor and newly elected city council members. Roll call There were present: Vanta Shafer presiding and Willard Dunham Bob Valdatta Margaret Branson Dorene Lorenz Kevin Clark comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent —Linda Amberg Special orders, presentations and reports Proclamations and Awards A certificate of congratulations was presented to the girls X- country team for placing 2 "d in State, the boys X- country team for placing 1 St in State, and individuals Rubye Foldager for placing 1st, Denali Foldager for placing 2 " and Matt Adams for placing 1" individually. A certificate of congratulations was presented to the High School Football Team for placing 2 " in the Greatland Conference and advancing to the 2004 Alaska State playoffs. A goldpan was awarded to Jack Goodwill for excellent leadership and dedicated service serving the People of Seward on: Trade Board December 1987 to August 1993, Port and Commerce Advisory Board from July 1993 to August 1998 and again on June 2001 to July 2004. City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 490 Borough Assembly Report. Borough Assembly Representative Ron Long stated the Borough reclassified 15 acres of land on Snug Harbor to again attempt to find the Cooper Landing Seniors a place for their housing project. A 3 -year contract was awarded to D &L Construction to continue operating the transfer facility in Seward. An ordinance that would establish 11 borough positions rather than contract out for solid waste was postponed until tomorrow. At that same meeting the Assembly would decide whether to adopt the All- hazard mitigation plan, and whether to change the maximum sales tax cap from $500 to $1,000. In response to questions, Long stated it was a possibility Seward could use the old school building for a non - school use, but time was running out and the city should let their intentions and proposals be known. Long confirmed the building was slated to be demolished, although $670,000 of state money would not be coming to fulfill that purpose. City Manager's Report. City Manager Phil Shealy indicated city staff had toured the junior high building with Borough officials, and were trying to decide how and whether the city could utilize the building or not. ➢ Harbor. Shealy passed out a diagram sketched of the harbor by the consultants. It showed a conceptual plan for the south end of the harbor which combined a boardwalk, shops and parking areas. He reported dredging to that area would be completed in the spring. Shealy passed out another diagram which showed X -float re- located 50 feet to the east, straightening the S curve, and X -float shortened 200 feet and moved to the existing fuel float and north launch ramp area. He felt this would free up X -float for larger vessels and transient moorage, and the Rec camp could possibly use the area for boat storage. The engineers also provided there was $246,000 left to continue the design. They suggested drawings and specs be prepared to negotiate for E, F, and J floats and an RFP prepared for the south harbor floats and Z floats. That package would be compiled including both concrete and timber quotes. Another package would re -hab D -float as an additive alternate. ➢ Soil contamination at SMIC DEC indicated TBT had been outlawed for a number of years and were re- testing the sand blast operation material. They would be visiting the site next week and had given the operator until November 15 to prepare a disposal plan for review. ➢ VISTA An application was submitted to VISTA to develop an economic master plan, and a resolution seeking council support would be on the next agenda. ➢ City Planner Malcolm Brown was not sent to Iraq this time, so resumed full -time work with the city today. In response to questions, Shealy stated the design of the breakwater was a Corps project and he would share those concerns with them. Also, the city hall building would remain closed after 5:00 p.m. because there had been vandalism and fires in the bathroom in the past. With homeland City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36 Page 491 security and employees alone at night in the building this decision to keep the doors closed enhanced safety. Chamber Report. President Rick Blythe stated the Chamber resolution would finally make it on the agenda for approval. The Chamber received nominations for four open seats on the Board and would hold a strategic meeting in mid - December. Blythe informed that the chamber and a city representative would be traveling to Nashville to discuss branding strategies and visit with three of the major cruise lines based in Miami. He noted the chamber was concerned that the multi- agency project was stalled and urged council to assist in moving forward with that project because he thought it was important to bring business to the downtown area. Other Reports, Announcements and Presentations. Historic Preservation applicant: Michaela J. Walker- Hettinger Library /Museum design presentation by Patty Linville. Linville presented concept drawings based on $18,000 that was appropriated earlier. The total price tag was 8 -10 million dollars, and the community would have to support from the ground up to make it work. Alaska Report 2004 prepared by Alaska 20/20 given by Stu Clark. Budget Overview given by Finance Director Kristin Erchinger. Citizens' comments on any subject except those items scheduled for public hearing. Stu Clark, thought more than one work session should be held on the budget to allow maximum public participation. Paul Carter, spoke against the increase of the bed tax. He felt the burden should be shared by all and not target one particular group. Carter stated no funding had been requested from the City on the conference center, and that the multi- agency project was stalled. He too thought the city should have more than one work session. Ron Hewitt, spoke against raising the bed tax. He thought it would drive people away from the city and targeted one industry. He stated a tax should be broad based. Brad Snowden, spoke against an increase in the bed tax, and thought it would force business out of the community. He supported giving the Chamber the added money they were requesting. He thought Seward needed an airport that could handle 737's, and would be meeting with Princess Tours and Alaska Airlines personnel in Seattle. City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 492 Approval of agenda and consent agenda Motion (Branson/Lorenz) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: The October 1, 2004 special meeting minutes, the October 11, 2004 regular city council meeting minutes and the October 12, 2004 appeal hearing minutes were approved. Council recessed at 8:55 pm Council resumed at 9:05 pm Public hearings - None Unfinished business -None New business Resolution 2004 -98, Determining It Is In The Public's Interest To Waive The Normal Bid Process And Award A Sole Source Purchasing Agreement To ProComm Alaska In An Amount Not To Exceed $88,159.29 For Motorola Mobile And Portable Radios With Accessories, Programming And Installation; And Appropriate Funds Shealy stated this included 8 mobile radios and 13 portable radios for the police and fire department at a cost of $88,159.29. Cost paid solely from a 100% grant. Motion (Dunham/Lorenz) Motion passed Approve Resolution 2004 -98 Unanimous Resolution 2004 -99 Authorizing The City Manager To Enter Into An Agreement With The Seward Chamber Of Commerce For The Purpose Of Promoting The City Of Seward Economic And Tourism Marketing Shealy noted the agreement was drafted and would become effective January 1, 2005. A marketing plan and budget would be required to be submitted by September 1" of each year. This professional services contract could not exceed two years per city code, so the agreement would reflect that. He requested it was in the public interest to waive the normal bid process and enter into this agreement City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 493 Motion (Lorenz/Branson) Approve Resolution 2004 -99 In response to Valdatta, Shealy informed that this resolution did not tie the council down to a dollar amount. The Chamber had requested $141,000 this year and the administration had recommended $107,000. He also clarified that council would be authorizing the contract. Attached was a proposed work plan and budget subject to annual allocation of funds. Motion passed Unanimous Resolution 2004 -100 Authorizing The City Manager To Pursue Environmental Permits For The "Red- Line" Alignment For The North Forest Acres Levee/Road Project, Authorizing An Increase In The Contract With William. J. Nelson & Associates, And Appropriating Funds Shealy stated a work program would need drafting on the North levee road to pursue the red line alignment that council requested. The work program would consist of. drafting and re- designing the levee road to include flood gates, design of the culvert fish paths, additional field survey work, preparation of the wetland mitigation plan, re- writing the FONZI, preparation of new project permit applications, and working with DOT on the approach permit. The calculated cost to accomplish this work was $74, 518.68. Shealy cautioned council that this authorization did not include negotiation with property owners regarding property acquisition or mitigation measures. Those would be addressed at a separate time in the future. This would have to be approved before the city could move forward with pursuing the red alignment. Clark disclosed a potential conflict of interest on the North Forest Acres subject because his wife owned a business in the area. He stated all alignments were an equal distance from the home and business and would not affect them financially. Mayor Shafer ruled a conflict did not exist because there was not a direct or indirect financial gain. Motion (Clark/Valdatta) Approve Resolution 2004 -100 In response to questions, Erchinger answered that there was new criteria listed in order to now pursue the red alignment as council wished, such as more survey work, re- designing, and additional permitting. This was completely different than what was agreed to by the agencies for the green alignment. Erchinger noted that property owners were aware of the alignments throughout the whole process but property acquisitions would not be sought until the alignment was picked. The administration no longer had the authority to pursue the green alignment based on council's decision. Shealy stated the council could utilize a citizen committee, but the administration knew council wanted the red alignment and was in the position to move ahead. He did not think a citizen committee was essential at this time, and stressed the desire to have a broad -based committee if council ultimately required one. City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 494 Shafer stated she was not ready to appoint a citizen committee to allow the city administration the opportunity to do their jobs. After watching prior presentations, Lorenz had no confidence these engineers had the excitement or ability to sell this project to the various agencies. In response to Shafer, Finance Director Kristin Erchinger stated the city had enough money left for project construction, but not enough for any mitigation efforts the city would be required to make. In defense of the city's environmental partner HDR, she stressed you would not find a company that had better rapport or respect in negotiating with these agencies. Erchinger felt bully tactics were used by the past administration to get these agencies to pursue the red alignment which resulted in bad history. HDR helped heal this "bad history" between the agencies and the city and had also persevered through the learning curve on the project for over five years. Clark stated the citizen committee would volunteer if needed in the future. Motion passed Yes: Valdatta, Dunham, Clark, Branson and Shafer No: Lorenz Absent: Amberg Resolution 2004 -101 Adopting An Alternative Allocation Method For The FY2005 Shared Fisheries Business Tax Program, And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In The Cook Inlet Fisheries Management Area Shealy noted this was a continuing practice each year and recommended approval. Motion (Dunham/Branson) Approve Resolution 2004 -101 Shealy responded that even if the population doubled, Seward was still in the area with Anchorage and probably would not get rich. Motion passed Unanimous Resolution 2004 -102 Authorizing The City Manager To Issue A Purchase Order For An Amount Not To Exceed $24,000 To NC Machinery For The Repairs Of The City's 1982140G Motor Grader And Appropriating Funds Shealy presented that during routine maintenance this grader was found to have excessive slack in its pins. This labor could not be done in- house. This company was the only authorized CAT dealership in Alaska that could provide warranty on parts and labor for repair work. Upon disassembling, more problems than were anticipated surfaced costing up to $24,000. This machine City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 495 was a 1982 model and a new machine of similar comparison today cost $190,000. This money would come from the general fund fund balance. Motion (Dunham/Branson) Approve Resolution 2004 -102 V aldatta thought some of this could have been done in -house or at AVTEC to save $11,000. hi response to Lorenz, Director of Public Safety WC Casey stated they did not have a replacement policy on the grader and it was not in the motor pool. He stated it was an important piece of equipment to do small areas like alleys and Lowell Point Road, and thought after fixing this machine it may last for 5 to 6 more years. Motion passed Unanimous Other New Business Items Elect and swear in Vice -Mayor and liaisons to P &Z and PACAB commissions. Bob Valdatta nominated Margaret Branson as Vice - Mayor. Nominations were closed. Margaret Branson was unanimously appointed Vice - Mayor. Mayor Shafer appointed Linda Amberg as liaison for the Planning & Zoning Commission. Mayor Shafer appointed Bob Valdatta as liaison for the Port and Commerce Advisory Board and also as the Economic Development District representative. Michaela J. Walker- Hettinger was unanimously appointed to the Historic Preservation Commission for a term that expired May 2005. A work session on the budget was scheduled for Wednesday, November 3, 2004 at 7:00 p.m. Informational items and reports - None Council comments Lorenz was happy to be on board and excited to participate. Clark urged people to vote in the upcoming election. As senate and house representative candidates called he was using that opportunity to plug two topics. PERS and Revenue Sharing. Branson thanked council for electing her Vice -Mayor and requested Mayor Shafer not go out of town often. City of Seward, Alaska City Council Minutes October 25, 2004 Volume 36, Page 496 Valdatta welcomed Ms. Lorenz to council. He appreciated Chugach Board of Directors for holding their meeting in town and announced the Borough comprehensive plan shown at the school tomorrow night. Dunham also thanked Chugach for coming to town. He was interested in the use of the school building. The new chancellor would be in town Nov 4 and 5`" and notified the science program at the Sealife Center was coming up. He was sad to report Bernie Huhn and Jack Wilsgaard had passed away. Shafer wanted the public to let council know where they think cuts should be made and had not heard any comments against a 1 mill property tax increase for road upkeep. Citizens' comments Margaret Anderson did not know why the fairway to the harbor entrance was so tight. She was concerned the multi- agency proj ect was stalled, and thought it was long overdue for a marketing plan and agreement with the Chamber. She wanted to know what was happening to the annexation questionnaire. Council and administration response to citizens' comments Branson stated the annexation questionnaires would be available on election day and distributed around town. Adjournment The meeting was adjourned at 10:09 p.m. Jean Lewis City Clerk Vanta Shafer Mayor (City Seal) City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 497 Call to order The November 1, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Willard Dunham Bob Valdatta Margaret Branson Dorene Lorenz Linda Amberg comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent — Kevin Clark Special orders, presentations and reports Proclamations and Awards - None City Manager's Report. City Manager Phil Shealy reported the Multi Agency Facility was not stalled as citizens indicated at the last meeting, and suggested a presentation and update on the December 13 agenda. He reminded council that a work session was needed or he would put together a resolution outlining the 2005 federal and state legislative priorities. DEC had issued an order requesting a disposal plan for the shipyard due by November 15. Staff would send a non- action letter to the shipyard in the mean time. Shealy expressed the Chief of police would give a short tour of the dispatch center later that evening. City Attorney Report, Cheryl Brooking conducted the annual local government overview for new members of council. Topics explained were: ➢ Seward being a home rule city with a city manager form of government, with city clerk, city attorney and city manager being contract employees. ➢ Council could enter into contracts not to exceed 5 years, with city manager to carry out the conditions of those contracts. City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 498 ➢ Council set by resolution and ordinance the policies of the city. ➢ Mayor acted as the lobbyist unless others are designated. ➢ Discussed quasi-judicial role vs. legislative role, ex -parte contacts, and appeal hearings. ➢ Open Meetings Act. More than 3 or a majority, whichever was less. Notice was required. Telephone conversations and emails were discussed. Actions could be deemed void and how it was linked to the public records act and disclosure. ➢ Conflicts of Interest. ➢ Notice given to adopt resolutions. Other Reports, Announcements and Presentations. PACAB liaison report by Willard Dunham. PACAB was beginning to look into marketing and the increase in harbor rates. Citizens' comments on any subject except those items scheduled for public hearing. Stu Clark remembered council had spoke with the Kenai Peninsula Borough before on the sales tax cap. He said there was no such thing as a fair tax. He did not support doubling the bed tax and thought it was stressing a tax burden in one area. Find something that hit a wider variety of businesses. Brad Snowden, reported he had a meeting with Alaska Airlines on requesting airline service to Seward, and passed out a letter. The FAA expressed support, Alaska Airlines was not real eager because cost was a factor. Snowden stated the airport would have to expand and mentioned another difficulty was to have that rise on the airport expansion priority list. In conclusion, he thought it was an idea worth pursuing further. Approval of agenda and consent agenda Motion (Branson /Lorenz) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Resolution 2004 -103, supporting the Municipal Advisory Group (MAG) Resolutions 2004- 02 through 2004 -08. (Laydown) City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 499 Public hearings — None Unfinished business Resolution 2004 -93, authorizing the City Manager to execute a grant agreement between the State of Alaska and the City of Seward in order to produce the Seward Historic Preservation Plan, Phase III and appropriating funds. Shealy stated this was postponed from September. DNR, State Historic Preservation Office had awarded a grant to the city of Seward to produce an updated Historic Preservation Plan, Phase III. The main scopes of work would be to document the current resources, designate goals, objectives and activities and establish criteria to prioritize the objectives. The goal would be to raise awareness and preserve history. Shealy stated the total cost of the project was $27,500. The federal share was $16,500 with a required local match of $11,000. $1,333 could be donated in labor, leaving $9,667 to come from the general fund fund balance. A lesser amount could be appropriated and the scope adjusted accordingly. Motion (Anderson/Branson) Approve Resolution 2004 -93 Motion previously made 9/13/04 Lorenz felt if the Historic Preservation Commission were not given the tools to do their job, why should they bother to donate their time. She felt this was a nuts and bolts grant, not a fluff grant. There were historic buildings in Seward being destroyed, therefore, it was important for the Commission to find out what the community expected of them. She did not think $9,700 was to much to preserve history. In response to questions, Planner Malcolm Brown, stated most of the work would go toward photo archiving of old and current properties, updating the old plan from 1996 listing todays goals and objectives, and doing a status update on what had been, and what else needed to be completed, and to generate community input. Brown informed that a consultant would be doing all the work, not staff. Branson appreciated preserving the historical aspect of the community, but felt with extensive amendments coming to balance the budget, she thought this should be brought back at a later date. Valdatta thought turning down a grant would hurt Seward in the future when they applied for grants. Lorenz re- emphasized Seward was losing resources and the plan had not been updated since 1996. Valdatta summarized a few sites that had been destroyed over the years that should have been preserved. City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 500 Shafer said history slipped fast if it were not taken care of, and thought the city had spent more on less fruitful things. Motion failed Yes: Lorenz, Valdatta, Shafer No: Amberg, Branson, Dunham Absent: Clark New business Resolution 2004 -104, supporting the application of the City of Seward for a VISTA project from the Alaska Department of Commerce, Community and Economic Development. Shealy stated the city did not have sufficient resources to pursue economic activities. The city presented and submitted an application. A resolution of support was needed as part of the application process. If the city cost shared, it could accelerate the review process. If not cost shared, the city took its chances for a position after next summer. Shealy knew of a VISTA employee working for the Borough in the Planning Department. He requested approval supporting the application. Motion (Dunham/Amberg) Approve Resolution 2004 -104 In response to Valdatta, Shealy was not sure the Chamber, PACAB and others would contribute money since they were already given tasks that were in the beginning stages such as branding and requirements for the economic master plan. Dunham stated several cities had used VISTA workers. Kenai used them and thought the cost benefits were extensive. Shealy stated this would be for a year at a time. In response to Amberg, Shealy stated resources could be tapped while providing housing for a year. It was a potential cost. The housing issue would still have to be resolved regardless of paying the cost sharing or not. Motion passed Motion (Lorenz/Dunham) Yes: Lorenz, Valdatta, Branson, Dunham, Shafer No: Amberg, Absent: Clark Desire to expedite the process and cost share at a cost of $12,300. Dunham was not sure allocating the $12,300.00 was the right way to go. Further discussion revealed no support for this motion. City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 501 Motion withdrawn Council unanimously gave direction to administration to move forward without the cost share, but bring back to council if he found anything additional was needed. Other New Business Items Another budget work session was scheduled for Thursday, November 18, 2004 at 7:00 p.m. Resumes for Jim Herbert and Andrew Hettinger would be sent to the Governor for appointment to the Marine Transportation Advisory Board. Informational items and reports - None Council comments Lorenz stated Lockheed Martin would be available on the 13 to meet with people to discuss purchase of a ferry. They were discussing this with Seldovia, and would stop by Seward as well. It was suggested by the University of Alaska business school that a VISTA worker could meet with them at their institute to help design an economic plan for Seward to assist with marketing. Dunham thanked Snowden for his airport plan and thought it was a nice idea. He thought action should be taken on the PERS issue and definitely thought the state should pick up the loss. The new chancellor would be in Seward the end of this week. He also announced AVTEC would have a culinary dinner with a visiting chef. Amberg wanted all to get out and vote. Valdatta reminded all to vote also and mentioned the annexation questionnaire was completed for people to fill out. Shafer stated the questionnaire could not be at the polls, but were available at the city clerk office. She thought Valdatta and Dunham should stay on the Stranded Gas committee and she would be attending AML next week. Citizens' comments Brad Snowden, handed out pictures of a cruise ship dock design off the end of Adams street. He thought people could disembark and walk around town from there. At least 2.5 acres of uplands would be needed to handle cruise ships, the UAF vessel and ferry service fleet. He thought the dock should be privatized and selling downtown at $15 a square foot could bring a million dollars for future shortfalls. Snowden felt a process should be drawn up to sell the land. City of Seward, Alaska City Council Minutes November 1, 2004 Volume 36, Page 502 Council and administration response to citizens' comments Valdatta stated the Alaska Railroad had a meeting on dock problems they were having and thought Mr. Snowden should talk to them. Adjournment The meeting was adjourned at 8:50 p.m. Jean Lewis City Clerk Vanta Shafer Mayor (City Seal) City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page503 Call to order The November 22, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Vice -Mayor Margaret Branson. Opening ceremony Chief Clemons led the pledge of allegiance to the flag. Roll call There were present: Margaret Branson presiding and Willard Dunham Bob Valdatta Dorene Lorenz Kevin Clark Linda Amberg comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — Mayor Vanta Shafer Special orders, presentations and reports Proclamations and Awards Borough Assembly Report. Borough Assembly Representative Ron Long said the Borough Assembly had failed to enact any changes to the maximum computation of sales tax. A motion to table failed 5 to 4, so the main motion was postponed to allow for additional comment until March 1. He felt it would be a close vote and could go any way. With the budget being introduced in May, any increase probably would not pass until January of 2006. Long thought the AML conference was the best they had, and it was good coming together for urban and rural interest. He emphasized a unified message was being sent by boroughs and cities, and with Pete Sprague as the President of AML this year, he felt municipalities were well positioned to speak with the legislature. In response to Dunham's question of what the primary complaint was, Long stated people feared large sales would then go to Anchorage. City Manager's Report. City Manager Phil Shealy stated the city hired an engineering technician named Terri Hahn and welcomed her to the staff. City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page504 In response to questions, Shealy confirmed he would check with the Corps on putting a road on top of the breakwater and would be straightening out the equipment issue with the electric department next week as soon as department heads could get together. He stated a letter was received from VISTA and they would shoot for April. There was no dollar figure as yet. Shealy also responded that he thought it was a homeland security issue to keep the building open all night, and advised against it. Chamber of Commerce Report. Chamber Director Laura Cloward informed council of their recent trip to Nashville and met with NorthStar Destination Strategies who had been contracted to study Seward as a whole, and provide a branding strategy that could be incorporated to promote Seward both as a destination location and for industry and business building. This company had compiled records, received good demographic demonstration, looked at available resources and opportunities, and compared Seward with other competitive cities. The next phase would address how to position Seward above the competitive cities, how to market ourselves, and to have a unified slogan to use for both tourism and industry. This should be completed in February. Tylan Schrock, stated in conjunction with the trip to Nashville, the Chamber went on to Miami, representing the marketing committee and the community as a unified voice, to speak with cruise ship companies on issues they had and thanked them for their continued business. They were told the community wanted to hear what they could do to make their business more successful and to build relationships. Schrock reported they also met with Royal Caribbean and Celebrity lines, and discussed baggage, port, and screening issues. They received specific ideas to market in Vancouver as customers boarded the cruise, pushing Seward as the destination at the end of the cruise. The committee also met with Norwegian Cruise Lines to market Seward as their port-of -call destination. School Board Report. Sandy Wassilie appreciated the votes from the east peninsula as she was elected to a full 3 -year term, and had also been elected Vice President of the Board. She mentioned a number of board members and people in this community were concerned with nutrition in school lunches. The Board was currently working on legislative priorities and that current enrollment projections for the next six years would level out. Wassilie stated resolutions were developed for the state legislature on TERS issues and explained how to nominate youth for the Spirit of Youth Award. Other Reports, Announcements and Presentations. P &Z Liaison report by Linda Amberg - None PACAB Liaison report by Bob Valdatta- Valdatta reported PACAB was looking at harbor rates and Harbormaster Scott Ransom had given a good presentation of the harbormaster conference in Homer. It was Valdatta's observance that PACAB needed a scope. Citizens' comments on any subject except those items scheduled for public hearing. Brad Snowden, wanted to donate $100 to the next plan for the airport. He stated 45% of the cruise ship customers stay in the state and 100% come by jet. City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page505 Ron Long spoke not for or against Ordinance 2004 -04. He felt there would be costs to both entities to enact two extra tax structures. He wanted more time to talk about the effects on small business. Approval of agenda and consent agenda Motion (Dunham/Lorenz) Approval of Agenda and Consent Agenda Motion passed Unanimous The clerk read the following approved consent agenda items: Non - objection to liquor license renewal for Ray's Waterfront Bar & Grill. The October 25 and November 1 regular meeting minutes were approved. Ordinance 2004 -03, amending Seward City Code section 8.20.25 to clarify requirements for a vehicle for hire permit was introduced and set for public hearing December 13, 2004. Resolution 2004 -107, approval of the hazard mitigation plan. Public hearings Resolution 2004 -108, authorizing the City Manager to enter into an agreement with Mark A. Clemens to extend the term of the lease of Lot IA, Block 1, Marina subdivision, Seward Recording District, Third Judicial District, State of Alaska. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Shealy stated the current lease expired in 2022 and an extension was needed to get funding for improvements. This lease generated $20,000 in annual rent and recommended its approval. Motion (Dunham/Amberg) Approve Resolution 2004 -108 Lorenz thought the city should sell the land instead of leasing because she thought it was best to sell the property as a matter of policy. In response to questions by Valdatta, Harbormaster Scott Ransom stated this lot had been combined as one. Motion Passed Unanimous Resolutions 2004 -109 throuEh 2004 -118, approving Fiscal Year 2005 Budget, consisting of the General Fund, Enterprise Funds, the Motor Pool Fund, and the Capital Budget. City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page506 Finance Director Kris Erchinger went over changes council had made to the budget at their last work session. Indications were: ➢ Add $14,900 to the city clerk salaries budget to make the 5 hour a day clerk go full -time. ➢ Possibly increase the bed tax. ➢ Remove money to set up the proposed conference center. ➢ Add to the mill rate to fund road repairs. ➢ Decide whether to increase funding to the Chamber or not. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Brad Snowden thought a higher deductible on employee health insurance could be looked at and suggested a comparison with Homer. Amberg and Valdatta wanted a "hold the line" budget, and to put a moratorium on the motor pool fund this year. Dunham requested a 1% bed tax. He was not in favor of a mill rate increase but wanted a fish restoration fee incorporated for all slip holders, possibly as a launch sticker or by adding $20 to the business license fees for fish restoration. Valdatta thought an additional 2 cents a gallon on fuel instead of property tax. Amberg would support a 2% bed tax but was against the mill rate and wouldn't support more than originally decided. Motion (Dunham/Lorenz) Add into General Fund budget the part office assistant position in Clerk's office be made a full time position. Motion Passed Motion (Amberg /Lorenz) Unanimous Increase bed tax by 2% Council member Clark disclosed a possible conflict owning a B &B. Dunham questioned that the increase would go toward profit. Vice -Mayor Branson found a conflict existed. Clark abstained. (It was later decided since establishing taxes affect everybody, there were not individual conflicts) Amendment (Dunham/Lorenz) Amendment Failed Amend increasing the bed tax by 1% Yes: Lorenz, Dunham, Branson No: Amberg, Valdatta Abstain: Clark Absent: Shafer City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page507 Main Motion Failed Yes: Amberg, Valdatta, Branson No: Lorenz, Dunham Abstain: Clark Absent: Shafer Motion (Dunham/Lorenz) Motion passed Establish a fish restoration fund tied to launch ramp fees or $10 sticker program, and pay only one time a year. Unanimous [An ordinance would be forthcoming after the budget cycle.] Motion (Valdatta/Lorenz) Add 2 cents per gallon fuel tax to fund the street maintenance program. Discussion ensued on assessment districts and how to recover money from non - profit organizations equally were discussed. Council recessed about 9:10 p.m. Council resumed about 9:20 p.m. At the break, Erchinger researched the towns of Bettles, Cold Bay and Sitka that had fuel tax collected and found the most made was $20,000. Main Motion Motion (Clark/Lorenz) Withdrawn Institute alcohol and tobacco sales tax of 10 %. Motion Failed Yes: Lorenz, Clark, Branson No: Valdatta, Dunham, Amberg Absent: Shafer Motion (Dunham/Lorenz) Include a 1% COLA and increase health insurance contribution by employees from 7.5% to 10 %. Amberg and Clark were not in support of raising benefits at this time. Dunham thought the government workers deserved a raise because they had not had one but felt employees should pay more for health insurance. Motion Failed Yes: Dunham, Branson No: Amberg, Lorenz, Clark, Valdatta Absent: Shafer City of Seward, Alaska City Council Minutes November 22, 2004 Volume 36, Page508 Council gave direction for administration to look into assessments to pay for road improvements and not increase the mill rate at this time. Unfinished business - None New business Ordinances for Introduction Ordinance 2004 -04, revising Seward City Code section 5.35.045 (Computation- Maximum tax), increasing the sales tax cap from $500 to $1,000. Shealy believed it was a good tax to implement. This would help to balance the budget. Take a stand and other communities within the borough may do the same. Motion (Dunham/Amberg) Introduce Ordinance 2004 -04 and set for public hearing. Clark did not want to do anything until the Borough passed it. Lorenz stated cities at AML were trying to coax their boroughs into implementing this tax cap. Amendment (Dunham/Lorenz) Change Section 2 to make effective April 1, 2005. Amendment Passed Yes: Dunham, Amberg, Valdatta Lorenz, Branson No: Clark Absent: Shafer Main Motion Passed Resolutions Resolution 2004 -105, amending the sewer tariff. Motion (Dunham/Valdatta) Yes: Dunham, Amberg, Valdatta, Lorenz, Branson No: Clark Absent: Shafer Approve Resolution 2004 -105 Valdatta thought the rate had been established too low from the beginning. Motion passed Unanimous City of Seward, Alaska City Council Minutes November 22, 1004 volume 36, PageSj* Resolution 2004 -106, amending the water tariff. Shealy referred to a 1993 rate study and proposed an increase from $25.31 to $34.17. The main aspect driving this rate increase was the third avenue waterline project. Motion (Dunham/Amberg) Approve Resolution 2004 -106 Motion Passed Unanimous Other New Business Items Discussion and give direction on Land and Water Conservation Fund FY '04 Grant. Council unanimously gave direction to apply for the grant and harbor funds. Discussion ensued on the 2005 Federal and State Legislative Priorities with no real changes added as presented. Discussion of vehicle purchase protocol and Silver Salmon Derby Pool. Lorenz thought the city should amend protocol to allow employees to purchase vehicles if already approved in the budget, without coming back to council. She also presented an idea for a Silver Salmon Derby Pool, but knew permission came from the legislature to run lotteries. Discuss rock quarry material sales and promotion of natural gas. Informational items and reports - None Council comments Clark stated a young man named Chad Adams reached the rank of Eagle Scout. He noted only 1 -2% of people ever reached that goal, and Clark found out he had been named as Adam's mentor. He encouraged people to hang out with a teenager to make a difference. Dunham wanted to clean up the pole yard. He also thought during afternoons and evenings in the winter when there were events, people should be able to park in front of the Alaska Sealife Center. Valdatta said the Senior Center had a great affair for Veterans Day. He had coffee at the Sealife Center on Sunday and really enjoyed it. Lorenz heard comments from citizens in Whittier, and she thought the city should join that community and level the playing field with cruise ship dockings. She believed the people of Whittier would be interested in opening negotiations. Also the people she talked to in Wrangell spoke highly of Chief of Police Tom Clemons and wanted him back. City of Seward, Alaska November 22, 2004 City Council Minutes Volume 36, PaQe510 Branson stated AML passed several resolutions on revenue sharing and repairing the continued damage to municipalities from PERS and TERS. Some municipalities had gone out of business. Branson thanked the Denali Commission for paying for 15 members to attend AML and she thought it was a great conference. Citizens' comments Paul Carter, did not want the playing field leveled with Whittier because they were in direct competition for cruise ship dockings. He thought meetings with cruise lines in Miami went well. He thought Tougas' comments on the reserves in our budget needed consideration. He did not think the bed tax increase should be supported. Carter felt all eyes were on Seward for the coming year in establishing and developing a port-of -call program. Of the 21 packages presented, Norwegian selected 9 of those. Council and administration response to citizens' comments Valdatta queried if the Jones Act was researched with the upcoming ports -of -call. Adjournment The meeting was adjourned at 10:55 p.m. Je Lewis City Clerk fi °. �e s (City Seal) M.0 • "w: ca • C « City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 511 Call to order The December 13, 2004, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. There were present: Vanta Shafer presiding and Kevin Clark Dorene Lorenz Absent — Willard Dunham, Linda Amberg, Margaret Branson and Bob Valdatta Fix the time to adjourn until tomorrow, Tuesday, December 14, 2004 at 7:30 p.m. because of lack of a quorum. Call to order The December 13, 2004, regular meeting of the Seward City Council was called to order at the fixed time of 7:30 p.m. on Tuesday, December 14, 2004 by Mayor Vanta Shafer. Opening ceremony The Teen and Youth Council led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding and Bob Valdatta Kevin Clark Dorene Lorenz Margaret Branson comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Cheryl Brooking, City Attorney Absent — Willard Dunham, Linda Amberg Special orders, presentations and reports Proclamations and Awards Teen and Youth Council Day was proclaimed December 18. City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 512 Proclamation of valor for citizen Fredrick Gailey who assisted an officer in a hostile domestic violence situation. Jacqueline VanDriessche takes 1st in 50 -yard freestyle at state swimming championships. Proclamation was awarded to Chad Adams for obtaining Eagle Scout honors. Borough Assembly Report. Borough Assembly Representative Ron Long stated the Assembly met on December 7 "' and Bear Creek Fire Service area was awarded a grant for $68,000 for breathing apparatus equipment. The legislative priorities meeting was upstairs tonight and all areas were well attended. Long said the tax cap issue was postponed until March. City Manager's Report. City Manager Phil Shealy requested a special meeting be set next Tuesday to discuss additional funding for transmission line repairs, an assignment for operation of Qutecak Hatchery, acceptance of a grant for the hatchery, and boom truck repairs. He reminded that D.O.T would be here Thursday holding a meeting on the Airport Master Plan. He also noted that Johanna Dollerhide would start Monday December 20 as the assistant city clerk. Shealy reported Senator Stevens stated the Park Service would acquire the land for the multi - agency building with no more delays. He identified the replacement of the Alpha Helix as one of his future priorities, and that it should be homeported in Seward. Shealy pointed out it was important for Seward to actively promote the design and construction of the design facilities in order for it to be homeported here. Shealy explained he had put on the agenda a temporary extension until March 31, 2005, the maintenance and operating agreement for Seward Ships. This would be pending the outcome of Dept. of Environmental Conservation's (DEC) continued investigation of soil. An important note was the lease credits expired at the end of this year, and lease payments in the amount of $28,000 per year began January I". In response to questions, Shealy stated he attended a meeting in Anchorage with the Governor's Chief of Staff, Dale Lindsey and lobbyist Kent Dawson on the LVL veneer plant. The Chief of staff indicated a strong interest in the project and offered encouragement. Shealy also indicated the city would negotiate with D.O.T for design aspects on the Wesley project, after receiving Denali Commission approval. D.O.T was selected because most private firms were more interested in playing an active role in the project rather than design. City Attorney's Report. Cheryl Brooking gave her report on the period October 21 through November 20. Continued work on contracts, draft agreements, public record request issues, business license questions, and zoning and enforcement issues. They had worked with the harbormaster on leases, continued funding of the harbor project, and shiplift agreements. In response to questions by Lorenz, Brooking acknowledged D.E.0 had sent the contractor at Seward Ships two letters of public record. The letter indicated possible violations had been identified but the investigation was ongoing. City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 513 Other Reports, Announcements and Presentations. P &Z Liaison report by Linda Amberg — None Port and Commerce Advisory Board(PACAB) liaison report by Bob Valdatta stated the new channel was dredged in the harbor and they were laying new rock. Next meeting PACAB would be discussing whether to replace the 50 -ton travellift. Valdatta heard Ocean Beauty would not be renewing their lease this year and would go back to the original owner. Future expansion and road work needed to be addressed. He thought the transfer lift needed to be extended. Two cutters would be coming in port soon. He also mentioned since Seward was a backup strategic port, Seward Ships was called to repair a boat and he thought that was a good service for the community. Citizens' comments on any subject except those items scheduled for public hearing. Tim McDonald, questioned the shape of the electric utility and had concerns because he heard the crew was revolting. He wanted to know what the council was doing about it. John Cote, assistant principal of the school offered to be available to staff or engineering firms while deciding whether to purchase or demolish the middle school. He would also be available for any questions. Brad Snowden, reminded the public to be present Thursday for the Airport master plan meeting. He wanted a cruise ship dock at the end of the beach that would be privatized and thought he had several future partners interested. Carol Griswold, notified that citizens were very concerned on SMIC industry waste. She wanted council to find Seward Ships in immediate default of the lease for illegal dumping in the bay and terminate the lease. She was waiting to hear if this illegal dumping could be hazardous waste. She had a copy of shipyard practices that had been adopted as city ordinances she had researched. DJ Whitman, announced the December 7 letter to DEC showed there was no hazardous waste. He made it clear there was no accusation of a violation and Seward Ships had not been cited. Approval of agenda and consent agenda Motion (Branson /Clark) Approval of Agenda and Consent Agenda Branson moved for Resolutions 2004 -124 and 125 be added to the consent agenda. Lorenz objected. Motion passed Unanimous The following was added to the consent agenda: A special meeting was set for Tuesday, December 21, at 7:30 p.m. City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 514 The clerk read the following approved consent agenda items: Resolution 2004 -119, approving amendment no. 16 to the contract with Kent Dawson Company, Inc. for state lobbying services through December 31, 2005 Resolution 2004 -120, authorizing a contract through December 31, 2005 with Alaska Newspapers, Inc. for display advertising in the Seward Phoenix Log at a rate of $8.60 per column inch, with a minimum of 35 column inches per week. Resolution 2004 -121, approving amendment No. 9 to the contract with Robertson, Monagle and Eastaugh and Zane & Associates to extend the term for Federal lobbying representation through December 31, 2005. Resolution 2004 -126, authorizing the payment not to exceed $5,712 for change orders submitted by Swenson Construction regarding the Police department dispatch area remodel, reference resolution #2004 -63. The December 27, 2004 regular city council meeting was cancelled because of the holidays. A special meeting was set for Tuesday, December 21, at 7:30 p.m. Public hearings Ordinances for public hearing and enactment Ordinance 2004 -03, amending Seward city code section 8.20.025 to clarify requirements for a vehicle for hire permit. Shealy stated this was a minor change in the ordinance that showed a business license needed to be issued in conjunction with a vehicle for hire permit. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the council and the public hearing was closed. Motion (Lorenz/Branson) Approve and Enact Ordinance 2004 -03 Motion Passed Unanimous Ordinance 2004 -04, revising Seward city code section 5.35.045 (Computation- Maximum tax), increasing the sales cap from $500 to $1,000. Shealy stated the Borough adopted this sales tax for each separate sale to be $500 in 1965, and had not changed since. Notice of the public hearing being posted and published as required by law was noted and the public City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 51.r Jerry Waliezer, found some favorable and not so favorable issues with raising the tax cap. He was in the marine business and had quite a few sales over $500. His customer base was from all areas and was afraid they would all go to Anchorage or elsewhere. Scott Holt, Finance Director for the Kenai Peninsula Borough was not here in support or adverse to the ordinance, but wanted to address the impacts upon the constituents paying the tax. He noted the Borough had postponed addressing this until their March meeting. He stated they would have to create a new taxing system for the City of Seward alone and were currently restricted with old software to implement a plan such as this. They were currently looking at the possibility to acquire a new program to make adjustments like this but that was down the road. He encouraged the City to work together with the Borough on this issue. Troy Tankersley, Sales tax supervisor for the Kenai Peninsula Borough was there to help educate on the ramifications of this ordinance. Although he understood budget constraints, this new calculation would be made difficult because it meant two separate returns would be mandated, some work would be done manually, auditors would have to address two actions, it would require a significant change to Borough code, and the system was 25 years old and could not handle another jurisdiction added to it. He stressed the process was made easier if cities and boroughs worked together. Tankersley also noted education and notification to borough businesses could not be done by the April 1, 2005 date. Doug Lechner, mentioned that even though there had been no changes since 1965 with the tax cap, he pointed out there had been a lot of changes in the dynamics of the business environment in Anchorage, Kenai and Seward. Businesses in Seward were fighting with competition in those cities. Being one of the largest marine based communities for halibut and black cod, these fisherman buy parts and groceries here. Lechner stated this was a difficult business environment in town and afraid this increase in the tax cap could drive business outside the city. Tim McDonald, agreed with Lechner. There were competitive disadvantages with Sewards' seasonal economy. He was opposed to any new tax increases and thought Seward had too expensive of an infrastructure. Mark Clemens, also thought Seward was at a competitive disadvantage, competing with the peninsula, Anchorage and the lower 48. He declared it was hard to do business with taxes being raised and reminded council that most local businesses were seasonal. Clemens stressed Seward should do more to expand the shoulder season and promote a more positive business structure. Stu Clark, after listening to arguments tonight, had been in favor of raising the tax cap for years, but in this instance he felt council should delay until the KPB ironed out the confusion and difficulties that went with implementing this tax increase. Clark stated that delaying increases for this long had now hit us in the face. Mark Olsen, thanked council for the opportunity to speak. He pointed out the escalating cost to the work force was a problem in Seward. Adding expenses left no recourse to compensate for it. Olsen added tax dollars were lost by people going to Anchorage City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 516 Motion (Branson /Valdatta) Approve and Enact Ordinance 2004 -04 Motion (Lorenz/Clark) Postpone until April 10 city council regular scheduled meeting. Lorenz wanted to postpone until the KPB could address it because her vote may be very different. The system may have to be updated anyway and she would feel more comfortable not being the lone wolf. She wanted to move together. Scott Holt mentioned that if the KPB passed this increase in the tax cap, Seward and Kenai being home rule cities, would still have to pass an ordinance to do so. Valdatta did not want to drive business outside the city limits. Motion to Postpone Passed Unanimous Resolutions requiring a public hearing Resolution 2004 -109 throueh 2004 -118, approving Fiscal Year 2005 Budget, consisting of the General Fund, Enterprise Funds, the Motor Pool Fund, and the Capital Budget. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Resolution 2004 -109, adopting the city General Fund operating budget for calendar year 2005. Shealy stated this resolution added 1 mill increase dedicated to street repair, making the mill rate 4.12. Motion (Branson/Valdatta) Approve Resolution 2004 -109 Shafer stated PERS was a huge issue this year that had to be paid. She suggested taking $70,000 from fund balance and adding a 1 mill increase in property tax to fund the roads. Branson wanted money to work on the roads. She stressed they were in a crisis situation and was only glad the ice today filled all the pot holes. Branson criticized it was irresponsible as a city not to fix them. Shafer wanted to increase sales tax projections by $70,000 to balance the budget. Lorenz mentioned adding a grant writer as the focus person for the city. Valdatta wanted the non - profits to pay a share of the road work. Erchinger explained sales tax projections and reiterated the city still had outstanding bonds on the roads and sidewalks. City of Seward Alaska City Council Minutes December 13, 2004 Volume 36, Page 517 Amendment (Branson/Valdatta) Earmark any bed tax increase for marketing, increase a position in the city clerk office from part -time to full -time, increase PILT revenue adjustments from the water and sewer fund due to tariff increases by $27,505, increase the sales tax revenue projections by $70,000, increase hotel/motel bed tax revenue projections by $20,000, and utilize $56,217 of fund balance to balance the budget, and increase the Property tax 1 mill to 4.12% for road repair. Motion Failed Amendment(Lorenz/Branson) Amendment Passed Main Motion Passed Council recessed at 9:15 p.m. Council resumed at 9:25 p.m. Yes: Branson, Valdatta No: Clark, Lorenz, Shafer Absent: Dunham, Amberg Earmark any bed tax increase for marketing, increase a position in the city clerk office from part -time to full -time, increase PILT revenue adjustments from the water and sewer fund due to tariff increases by $27,505, increase the sales tax revenue projections by $70,000, increase hotet/motel bed tax revenue projections by $20,000, and utilize $56,217 from fund balance to balance the budget, and keep the mill rate at 3.12 %. Unanimous Unanimous Resolution 2004 -110, adopting the Parking Enterprise Fund budget for calendar year 2005. Erchinger stated this fund had no rate increases and was the same as the preliminary budget. It had $120,000 worth of expenditures to stripe and seal the parking lots. The fund ended with cash of $92,405 after expenditures. Motion (Branson /Lorenz) Approve Resolution 2004 -110 City of Seward Alaska City Council Minutes December 13, 2004 Volume 36, Page 518 In response to Valdatta, Erchinger stated the wage committee reviewed those jobs and recommended a pay raise and that was reflected in the budget. Cash tray machines may be acquired once sufficient revenues were there. Motion Passed Unanimous Resolution 2004 -111, adopting the Hospital Debt Service Fund budget for calendar year 2005. Erchinger stated this reflected the payment of the hospital PERS payment which was from 1% of the sales tax. This included $16,000 to fund capital requests. Motion (Branson /Lorenz) Approve Resolution 2004 -111 Erchinger stated this fund balance would be to $300,000 by the end of 2005. Hospital bonds would be paid off in 2013. Motion Passed Unanimous Resolution 2004 -112, adopting the Motor Pool Internal Service Fund budget for calendar year 2005. Erchinger had eliminated the proposal to do a capital lease to replace the snowblower and purchase the asphalt machine. She added the capital lease proceeds for a 50 -ton boatlift replacement. Capital outlay showed digger /derrick truck carried over from last year, backhoe and all vehicles excluded with the exception of one police car. Motion (Branson /Clark) Approve Resolution 2004 -112 Motion Passed Unanimous Resolution 2004 -113, adopting the Water Enterprise Fund budget for calendar year 2005. Erchinger stated there were no modifications from the preliminary budget. Motion (Branson /Clark) Approve Resolution 2004 -113 In response to Clark, Erchinger hoped to get funding for the 3` Avenue water main or intend to pay by a loan with as low as 1.5% interest. She expressed there were expensive needs out there and the city should start looking at a replacement plan for that fund. Motion Passed Unanimous Resolution 2004 -114, adopting the Sewer Enterprise Fund budget for calendar year 2005. Erchinger stated there were no changes from the preliminary budget with a rate increase to be City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 519 implemented 1/1/2005. Motion (Branson /Lorenz) Approve Resolution 2004 -114 Valdatta said the pump station needed work figured into the mix sometime soon. Motion Passed Unanimous Resolution 2004 -115, adopting the Electric Enterprise Fund budget for calendar year 2005. Erchinger stated this enterprise fund did not propose a rate increase for the year. Reserves were utilized to pay the annual SMIC bill and pay a utility permit fee. This fund would set aside $500,000 to be available to pay for major maintenance and repairs if needed. The fund currently had $841,000.00 available to spend on capital projects. The proposed capital projects for the upcoming year were the cable fault finder radar unit, and the security fence at Ft. Raymond substation. Also proposed were the purchase of the digger and boom truck. Motion (Branson /Lorenz) Approve Resolution 2004 -115 In response to questions, Shealy acknowledged not all of the items the crew wanted were proposed to be purchased this year. Motion Passed Unanimous Resolution 2004 -116, adopting the Small Boat Harbor Enterprise Fund budget for calendar year 2005. Erchinger stated no changes from the preliminary budget. A 12% rate increase had been programmed in to help fund the east harbor expansion project and inflation. This would not however, come close to funding the east harbor expansion project. PACAB recommended a 10% increase in rates; the city was proposing the higher rate. Motion (Branson /Clark) Approve Resolution 2004 -116 In response to a question, Erchinger stated $90,000 would be generated with a 10% increase. Motion Passed Unanimous Resolution 2004 -117, adopting the Seward Marine Industrial Center (SMIC) Enterprise Fund budget for calendar year 2005 Erchinger stated no modifications since the preliminary budget. This budget was balanced by $250,000 from the Electric fund. Motion (Branson /Clark) Approve Resolution 2004 -117 Erchinger could not find a record of any agreements of ongoing subsidies to rates. City of Seward, Alaska City Council Minutes December 13, 2004 volume 36, Page 520 Motion Passed Unanimous Resolution 2004 -118, adopting the Capital Improvement Plan budget for calendar year 2005 and two subsequent calendar years. Erchinger added the digger /derrick backhoe to the preliminary budget and pushed fire trucks to 2006. Also the hospital related capital improvement plan totaled $115,433. Only $16,000 was appropriated towards that plan, leaving a $100,000 shortfall. Motion (Branson /Clark) Approve Resolution 2004 -118 Lorenz thought snow blowing could be sole sourced out, while fire needs seemed to be essential services. Erchinger communicated budget requests were prioritized beforehand and she could not speak to dire need but explained the grader needs. Motion Passed Unanimous Unfinished business - None New business Ordinances for Introduction Ordinance 2005 -01, revising Seward City Code section 5.45.015(A) (Hotel/Motel Room Tax — Levy of tax), increasing the sales rate from 4% to 5 %. Shealy stated there had been considerable public testimony opposing the bed tax increase from 4% to 8 %. Administration now proposed a 1% increase. Motion (Branson/Valdatta) Motion Failed Introduction Resolutions Introduce and set Ordinance 2005 -01 for public hearing. Yes: Branson, Valdatta, Shafer No: Lorenz, Clark Absent: Dunham, Amberg Resolution 2004 -122, authorizing the city manager to enter into a contract with Enterprise Engineering, Inc. (EEI) to provide consulting services to the City of Seward for Middle School review and appropriate funds for an amount not to exceed $20,000.00. City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 521 Shealy noted if the city wanted to take the building over, it needed more information whether it was feasible. Three alternatives were proposed to the city and it was estimated to cost $20,000 for engineer work. Motion (Valdatta/Branson) Approve Resolution 2004 -122 Valdatta thought it would be too much of an operating cost. He looked at it and thought the building was in tough shape and didn't recommend purchasing it. Shealy stated there was interest from various departments to utilize the space, especially the gym. He acknowledged many problems with the building but did not have enough information to advise council one way or another. Shafer was stumped on this one. Branson thought paying an extra $20,000 to duplicate what was already done for the Borough was asinine and required too much money. Manager of Engineering Dave Calvert stated the gym was the most useful and Parks and Recreation needed a gym. It would cost a lot to repair the roof which leaked like crazy. Motion Failed Unanimous Resolution 2004 -123, approving a professional services contract with Transportation Engineering Northwest, LLC to conduct an economic impact study for state ferry services to the City of Seward for an amount not to exceed $16,205 and appropriate funds. Shealy reminded that ferry service had been extended for another year. This money would have to come from the General fund but he felt morally they should comply and conduct the study. Motion (BransonNaldatta) Approve Resolution 2004 -123 Shealy thought the state would go back and look at those earlier studies again and thought this was the best shot to influence their thinking. He met with Commissioner Blatchford and had not heard back yet. Lorenz had heartburn over the company because it was not Alaska based. She mentioned possibly HDR would be a good choice. Shealy stated the subcontractor was a Juneau firm. Contract purposely extended to 6 months for D.O.T to utilize for shipboard surveys. Motion passed Yes: Valdatta, Clark, Branson, Shafer No: Lorenz Absent: Dunham, Amberg City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 522 Resolution 2004 -124, approving the City of Seward's calendar year 2005 State Legislative priorities. Shealy stated these priorities were put together every year to help lobbyists when discussing city projects with agencies and legislators. 2.8 million ship repair infrastructure improvements were added after the last work session under Port and Harbor. Motion (Branson/Valdatta) Approve Resolution 2004 -124 Valdatta noted with the University of Marine Science vessel wanting to stay here and the need for a new dock, possibly two projects could be combined at SMIC to accomplish both. Shealy stated the Marine Center wanted their dock by their facility. Amendment (Lorenz/Valdatta) Change the PORT AND HARBOR order to read 11 1. SMIC A. $4.5 million for dock/breakwater at SMIC B. 2.8 million for SMIC ship repair infrastructure improvements 2. Small Boat Harbor A.$3.5 million for inter- harbor improvements B.$3.5 million for T -dock and bulkhead 3. Seward Marine Center dock design for $3 million;" Switch the order of PUBLIC FACILITIES #2 and #3 putting AVTEC before Spring Creek expansion; and switch the order under BENEFICIAL LEGISLATION of #2 and #4, putting PERS/TRS debt before Revenue sharing. Amendment Failed Main Motion passed Yes: Lorenz, Valdatta, Clark No: Branson, Shafer Absent: Dunham, Amberg Unanimous Resolution 2004 -125, approving the City of Seward's calendar year 2005 Federal Legislative priorities. Shealy stated the Federal lobbyist suggested the 3rd Avenue waterline may be fundable but not reimbursable, and believe the project would be completed before funds could be available. The lobbyist spoke highly about keeping the multi - agency project and Seward marine dock design toward the top. City of Seward, Alaska December 13, 2004 Motion (Branson/Lorenz) Amendment (Valdatta/Lorenz) Amendment Failed Main Motion Passed City Council Minutes Volume 36. Pare 523 Approve Resolution 2004 -125 Change the order under PORT AND HARBOR to be: 1. $2.8 million for SMIC ship repair infrastructure improvements 2. $4.5 million for dock/breakwater at SMIC 3. $3.5 million for T -dock and bulkhead 4. $3.5 million for inter - harbor improvements 5. $3 million for Seward Marine Center dock design. Yes: Valdatta, Lorenz No: Clark, Branson, Shafer Absent: Dunham, Amberg Unanimous Resolution 2004 -127, authorizing the city manager to enter into an agreement with Seward Ship's Drydock, Inc. to extend the term of the maintenance and operating agreement for the shiplift facility. Shealy stated Seward Ship Drydock (SSD) had operated the shiplift facility since 1995 under an agreement that expired 12/31/2004. The operator sent a timely request June 3, 2004 to the city, indicating his intent to exercise an option to renew the operating agreement. In October 2004, the city received a copy of a letter from the Dept. of Environmental Conservation (DEC) investigating complaints alleging waste generated at the shiplift and disposals at un- permitted sights around Seward. A subsequent second letter by DEC in November requested a disposal plan from the operator which was submitted. Shealy reported this process with DEC was moving slowly, and a temporary extension would be needed to continue operation of the shiplift after January 1, until the issue with DEC could be reviewed and resolved. He informed that if the operating agreement was not extended, the city would either have to operate it themselves or shutdown until another operator was in place. Motion (Branson/Valdatta) Approve Resolution 2004 -127 Lorenz disclosed a possible conflict because of public concern over $100 worth of fill that was put on her property, and stated she had no financial gain whether SSD had an operating agreement or not. Mayor Shafer found no direct or indirect financial gain and declared a conflict did not exist. In response to questions, Shealy recommended the city authorize a temporary extension that would give DEC time to complete the report. If DEC had a negative report, the city would terminate City of Seward, Alaska City Council Minutes December 13. 2004 Volume 36, Paze 524 the agreement and lease. Shealy responded that he had not seen the business plan that the council had requested back in July. In response to Clark, Shealy conferred this agreement only referred to the shiplift and rails, not the shipyard itself. He also noted that lease credits expired at the end of the year, so effective January 1 st, their first quarterly payment was due on a $28,000 per year lease. Valdatta was afraid to lose the coast guard business that was scheduled for this spring. Shealy answered he hoped to ultimately get clearance from DEC that the issues had been resolved. He was giving until March 31, 2005 to hear back from them. The operator maintained they were not in default because they had not been cited for hazardous materials. The city's position was that SSD was in violation of DEC regulations, therefore in default. Motion Passed Yes: Valdatta, Lorenz, Clark, Shafer No: Branson Absent: Dunham, Amberg Resolution 2004 -128, amending the port and harbor tariff for 2005. Shealy stated the budget had been put together with a recommended 12.96% increase. The Port and Commerce Advisory Board thought 10% was adequate. Part of this increase was to help offset the $7.8 million dollar expansion project. Motion (BransonNaldatta) Approve Resolution 2004 -128 Harbormaster Scott Ransom, responding to questions by Lorenz, stated final stages for design were not completed yet, so therefore he could not give them anything but general information on design and costs of the project. It was the intent to use 10% toward the bonding of the project and the remaining 2.96% toward inflation. Finance Director Kristin Erchinger reiterated that until council could decide what the specific layout of the harbor would be and the elements, firm cost estimates could not be generated. PACAB thought if certain elements would not be pursued, cost estimates would go down, negating a portion of the increase. Also $165,000 in additional operating costs had not even been addressed with this increase. The intent was to get the fund looking as healthy as possible to help with bonds. Motion passed Yes: Valdatta, Branson, Clark, Shafer No: Lorenz Absent: Dunham, Amberg Informational items and reports - None Council comments - None Citizens' comments City of Seward, Alaska City Council Minutes December 13, 2004 Volume 36, Page 525 Tim McDonald, thought the decision on the shiplift was a boondoggle and had a sitting council member tell him their campaign was paid for by Seward Shiplift Manager D.J. Whitman, so therefore thought the vote on that resolution should be invalidated. He thought it was a serious mistake and did not understand it at all. Council and administration response to citizens' comments - None Adjournment The meeting was adjourned at. 11:00 p.m. Jea Lewis i Vanta Shafer City Clerk Mayor (City Seal) Y,I tea. b City of Seward, Alaska City Council Minutes December 21, 2004 volume 36 Page 526 Call to order The December 21, 2004, special meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer Opening ceremony Officer Chris Roberts led the pledge of allegiance to the flag. Roll call There were present: Vanta Shafer presiding Willard Dunham Dorene Lorenz Margaret Branson Bob Valdatta Linda Amberg comprising a quorum of the Council; and Phil Shealy, City Manager Jean Lewis, City Clerk Absent — Kevin Clark Citizens' comments on any subject except those items scheduled for public hearing. - None Approval of agenda Motion (Branson / Amberg) Motion Passed Approval of Agenda Unanimous Unfinished business - None New business Resolutions Resolution 2004 -129, approving Amendment No. l to the agreement by and between the City of Seward and Qutekcak Native Tribe for operating and maintaining the Seward Mariculture Research Center and Shellfish Hatchery and approving the assignment of the agreement to Chugach Regional Resources Commission. Shealy stated the city and Qutekcak entered into an agreement in 1997 for the operation of the mariculture facility. They would now like to assign that responsibility to Chugach Regional Resources Commission (CRRC) which was a consortium of tribal entities. The Governor had approved additional funding to support the operation of the shellfish hatchery. City of Seward, Alaska City Council Minutes December 21, 2004 Volume 36, Page 527 Motion (Dunham/Amberg) Approve Resolution 2004 -129 In response to questions, Shealy stated once the assignment was approved the name of the new hatchery would be Alutiiq Pride Shellfish Hatchery. Branson noted that Chugach Regional Resources Commission had been in business at least 15 years that she knew of. Dunham thought it looked like a good idea Motion passed Unanimous Resolution 2004 -130, accepting a $120,000 grant from the Office of the Governor of the State of Alaska for the support of the Seward Shellfish Hatchery, authorizing the City Manager to enter into an agreement with the State of Alaska for the grant funds, authorizing the City Manager to enter into an agreement with Qutekcak Native Tribe to pass through the grant funds and appropriating the funds. Shealy conveyed the State of Alaska provided a $120,000 grant to the city to support the shellfish hatchery through June 2005. In May of 2004, he reminded that the Governor had provided a grant of $150,000 which was expended and included $15,000 to conduct a business plan. The business plan was completed. Motion (Branson /Dunham) Approve Resolution 2004 -130 Branson pointed out the shellfish hatchery would be renamed Altiiq Pride. Motion passed Unanimous Resolution 2004 -131 authorizing the City Manager to amend the contract with Dryden & Larue, Inc., and engineering firm hired by the City to do the design of the relocation of the 69 KV transmission line in the vicinity of the three bridges for a total price of $45,000 which will be reimbursed by the State of Alaska. Shealy stated this was a D.O.T request to amend the contract with Dryden and Larue to provide an additional $45,000 in funding to provide for re- design of the re- location of the transmission line by the three bridges. This would temporarily re- locate the transmission and distribution facilities to allow construction of the spur dike and digging in bridge number one channel. This additional expense would be reimbursed, making the total $116,000 including this change order. Shealy mentioned taller poles were contemplated but because of the airport approach, light poles would not work. The line would be relocated further to the west until completion. Motion (Branson /Amberg) Approve Resolution 2004 -131 Shealy stated this was a temporary line to be removed once the work was completed. City of Seward, Alaska City Council Minutes December 21, 2004 Volume 36, Page 528 Motion passed Unanimous Resolution 2004 -132 authorizing the City Manager to enter into a contract with Marmon & Harrington to purchase a new front -end assembly for the Electric Department line truck at a price not to exceed $25,000. Shealy stated the 65 foot bucket truck was 15 years old and a replacement would be about $250,000. The truck generally was in good shape and invaluable to the electric utility operation. Between 30 to 40 studs had been replaced over time, so Marmon and Harrington had re- designed the front end to hopefully solve that problem. The work order was for $15,333.00. Shealy stressed the city was currently leasing a truck from Chugach Electric for $2,400 a week while this truck was out of commission, so it was needed to proceed as soon as possible. The city did not go out to competitive bid because this company was the only supplier for parts for that truck, and funds would be transferred from the electric fund. Motion (Branson /Dunham) Approve Resolution 2004 -132 Public Works Director, WC Casey stated the truck was in the yard in Seward and the work would be handled by mechanics in the shop. Upon approval, parts would be ordered tomorrow. Casey stated he was just recently informed of the ongoing stud breaking problem, and an answer needed to be found. Marmon and Harrington asked if it was happening on the right front which it was. They had failed to notify the city of any problems. He hoped pursuing a heavier duty front end would solve this problem. Motion passed Unanimous Resolution 2004 -133 authorizing the City Manager to enter into a rental agreement with Chugach Electric Association (CEA) to extend the rental period for a 70 foot bucket truck by two months for a total cost of approximately $28,800. Shealy expressed the need to rent the truck for up to another two month period of time until the truck was fixed. Motion (Branson/Dunham) Approve Resolution 2004 -133 Shealy believed the truck could be fixed in one month, but asked for two in case. This paid for a substitute truck until the bucket truck could be fixed. In response to questions, Casey expressed he could not order the parts until after approved at this council meeting. It could take five weeks to get the front end and another week to repair. He stated the truck could be used, but only in a bind. It had to be fixed. Motion passed Unanimous Council comments City of Seward Alaska City Council Minutes December 21, 2004 Volume 36, Page 529 Lorenz wished all a Merry Christmas. Dunham stated it was nice to be back from his three week vacation. He had new ideas to lay on everyone in the new year. Amberg and Branson wished all a Merry Christmas and a Happy New Year Valdatta wished to tour the operation of the shellfish hatchery in the new year. Shafer also wished all a Merry Christmas and Happy New Year and hoped 2005 would be a successful year. Citizens' comments Stu Clark, stated the electric department had asked for money the last few years and he was concerned the equipment was not kept up on a preventive maintenance basis. It appeared to him to be poor planning and thought there were less expensive alternatives. He thought it was advisable to look into how this department head was managing his department, and was concerned with no management inquiry. Carol Chaudiere, noted if something consistently went wrong, she would see if other towns and owners had the same piece of equipment and problem. She wanted the problem solved. Council and administration response to citizens' comments — None Adjournment The meeting was adjourned at 8:02 p.m. Jea Lewis Cit Clerk � (City Seal) Ea 0 Ile- d4 A #11; 1111galIZO I" S n e. i • b `e• a c A 7�wt Vanta Shafer Mayor