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HomeMy WebLinkAbout11272006 City Council Minutes City of Seward, Alaska November 27,2006 City Council Minutes Volume 37, Page 285 CALL TO ORDER .... The November 27,2006, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. OPENING CEREMONY Sergeant Valadez led the pledge of allegiance to the flag. ROLL CALL There were present: Vanta Shafer presiding and Linda Amberg Steve Schafer Robert Thomas Bob Valdatta Jean Bardarson comprising a quorum of the Council; and Kris Erchinger, Finance Director Jean Lewis, City Clerk Johanna Dollerhide, Assistant City Clerk ..... ABSENT - Willard Dunham SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards - None City Manager's Report. Finance Director Kris Erchinger stated department managers and city staff had been working hard to keep projects moving forward the last few weeks without a city manager. ~ Long Term Care Facility: A Certificate of Need public hearing was held on November 16, 2006. It was well attended with good public feedback. The Department of Health and Social Services was expected to have a recommendation to the commissioner's office by Christmas Eve. The commissioner of DHSS had 45 days to issue a decision after that. Once approved, the city would go to the bond bank for financing and the city hoped to seek approval prior to issuing construction bids. Erchinger expected to meet with the bond bank in February, 2007. ~Public Works: The department had been preparing to work on generator power while Norcon worked on the transmission line. The vehicle fleet replacement policy was being worked on. All flood work by street crew was completed except for the guardrail on Lowell Creek Bridge. The ..... Water and Wastewater Department completed a temporary service line to the Shellfish Hatchery and Resurrection Bay Seafoods, who were both adversely affected by the flood. A pump failure occurred at the Pump 5 water well in Ft. Raymond and repair costs would come before the council soon. City of Seward, Alaska November 27, 2006 City Council Minutes Volume 37, Page 286 f ~ Harbor: Construction on the South Harbor was estimated to start early December and ...J completed by spring time. The Harbormaster, with the Chamber of Commerce Director, attended the Pacific Marine Expo in Seattle and noted there was an interest from people needing travelift storage. ~ Parks and Recreation: High school events were was held at the TYC for the Football and Ski teams. The TYC was continuing hosting dances, Sports and Rec organized a turkey volleyball tournament, and community schools were holding winter classes. The campgrounds were brush cleaning and maintenance issues were being taken care of. The department was preparing to update their master plan. ~ Electric: Three grievance arbitrations occurred last week and staff expected a response in next 30 days. Three more grievances were scheduled, and Erchinger thought they would be done after that. The Regulatory Commission of Alaska (RCA) intended to withdraw their complaint against City of Seward. Bill Perdue was city electric dept's newest lineman. Norcon was expected to work on the Transmission Line. Customers anticipated to be affected by this were those served from the Spring Creek Substation, with a 4-6 hour interruption on December 6, 2006. After research, the Electric Department thought the future location of the Ft. Raymond shop was not enough for public works and electric. The Christmas garland would not be hung downtown this year, as they were in too poor of a condition. The department would hang other decorations and work with the downtown association to collaborate for next year. The new Kawabe Park Christmas tree could not be lit this year; instead crews would cut and plant a tree to light in the Thorn's lot for one more year. The Elhard assessment district was completed last week before Thanksgiving. ..~ i ...J In other areas, Erchinger reported the Police Department welcomed one of its officers back from the academy and there was one position open in the jail. The Fire Department was looking for sponsors to take angels and donate gifts for their annual Angel Tree Program. An RFP for audit services would come to council soon from Finance. The Library was celebrating its 76th anniversary with an open house on November 30, 2006. They were also sponsoring the wish tree program, where people could donate a book for holiday season. Erchinger passed out a lobbyist report from Brad Gilman and wished everyone a happy holiday season. Erchinger responded to questions from the council. School Board Report. Lynn Hohl referred council to the lay down report she submitted. The district would be requesting budget input online. PERS and TRS was a big issue with the School Board, as well as the City of Seward. Other Reports, Announcements and Presentations CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING. APPROVAL OF AGENDA AND CONSENT AGENDA ~ ~ ....I Motion (Thomas/Bardarson) Approval of Agenda and Consent Agenda City of Seward, Alaska November 27, 2006 City Council Minutes Volume 37, Page 287 Motion Passed Unanimous ..... The clerk read the following approved consent agenda items: Cancellation of the December 26, 2006 regular city council meeting. Approval of the September 25, October 9, and October 23, 2006 regular city council meeting minutes. Resolution 2006-108. adopting the electric enterprise fund budget for calendar year 2007. Resolution 2006-110. adopting the water enterprise fund budget for calendar year 2007. Resolution 2006-111. adopting the wastewater enterprise fund budget for calendar year 2007. Resolution 2006-112. adopting the Seward Marine Industrial Center enterprise fund budget for calendar year 2007. Resolution 2006-114. adopting the parking enterprise fund budget for calendar year 2007. Resolution 2006-116. adopting the hospital debt service fund budget for calendar year 2007. .... Resolution 2006-117. adopting the capital improvement plan budget for calendar year 2007. Resolution 2006-129. approving amendment no. 18 to the contract with Kent Dawson Company, Inc. for state lobbying services through December 31, 2007. Resolution 2006-130. approving amendment no. 10 to the contract with Robertson, Monagle & Eastaugh and Zane & Associates to extend the term for federal lobbying representation through December 31, 2007. PUBLIC HEARINGS Resolutions Requiring a Public Hearing Resolution 2006-128. authorizing the City of Seward to issue harbor improvement revenue refunding bonds, 2007 in the principal amount of not to exceed $2,650,000 to refund certain outstanding harbor improvement bonds of the city, fixing certain details of such bonds and authorizing their sale and providing for related matters. 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. .... Erchinger directed council to the lay down version before them. The intent ofthis resolution was to finance the 2000 harbor revenue bonds. Because interest rates were still at all time lows, it was unusual but advantageous to refund them now. Typically, staffwould ask council to approve the City of Seward, Alaska November 27,2006 City Council Minutes Volume 37, Page 288 refunding, assuming the interest rates would be in effect at the time of refunding. If the rates increased, staff would pull out ofthe refunding. It was advantageous to refund ifthe bonds netted at a savings of at least 3%, currently the savings were at 3.83%. .~ J * ..... Motion (Thomas/Schafer) Approve Resolution 2006-128 Motion Passed Unanimous UNFINISHED BUSINESS Items Postponed from a Previous Agenda Resolution 2006-109. adopting the city general fund operating budget for calendar year 2007. Erchinger referred council to the lay down, recommended version to this resolution. The only change was removing language "setting the mill rate." Council did not have to set the mill rate until June 15, 2007, and could explore other options if they were to put this off for a bit. Erchinger pointed out revisions made to the budget, and explained personnel related cuts. Staff recommended not funding two positions in the upcoming budget until alternative funding sources were determined. It was a goal to not adversely impact any current employees, but instead to not fill positions that were vacant. Erchinger clarified these positions were not necessarily cut, but wouldn't be filled until adequate funding was secure. The city shop's Office Assistant position remained in the budget. j Staff recommended keeping this position and to not include the grant writer position. As the general ...J fund budget stood not, the budget was at a surplus of $30,000. She hoped to fund Community Development Director at a later time. Motion (Thomas/Bardarson) Approve Resolution 2006-109 Bardarson asked about the change in the undesignated line in the general fund. Erchinger said the difference was adding in the deficit with the undesignated fund balance. Once the budget was balanced, this figure changed. Schafer wanted the Community Development Director put back in the budget because the city needed someone ofthat expertise in the Planning Department. He wanted to know how the city used depreciation expenses. Erchinger stated the intent of the depreciation line item was to show what line items had been depleted that year. This line indicated how much money they should be investing in existing equipment and the potential for new equipment to replace existing equipment. Valdatta asked about the cargo tax. This was a 20 year old idea; and he felt it was a beneficial idea for Seward. He was also concerned with taking money from Public Works and giving Parks and Recreation and City Hall more money. Valdatta wanted to know why Public Works was getting so much money cut. Erchinger didn't think they were really cutting back Public Works; the numbers were higher in 2006 due to several one time purchases. ...J Mayor Shafer wanted to know the difference between a tariff and a tax. Erchinger explained a tariff was more of a guide, or rules and regulations. The cargo fee could be a tax or a fee. If it was City of Seward, Alaska November 27, 2006 City Council Minutes Volume 37, Page 289 .... a tax, government entities would not pay it. A fee would be reimbursing the city for the impacts of the activity on infrastructure compared to a tax, in which the business mayor may not derive a benefit. Either way, it should be determined ifit should be a tax or a fee. Right now, the proposed cargo charge was set as a fee, as opposed to a tax. Shafer said it was difficult to not to see the Community Development Director position funded. If there was anyway to fund this, she would prefer it. Erchinger addressed Mayor Shafer's concern about this position. This department never had more than two and a half people in the department. They currently had two positions and also the Executive Liaison had taken a lot of work regarding the boards and commissions. It would be great to add the director position, but she felt it would be more appropriate to do so with an identified revenue source. Schafer didn't know if this was the right time to implement a cargo tax/fee politically. He felt it should be discussed more. Thomas was curious about the $1,000 for uniforms that was added to the general fund budget. Erchinger reported this was for the Fire Department. It was missed in the original budget, and it was caught this time around. Motion Passed Yes: Bardarson, Schafer, Valdatta, Amberg, Mayor Shafer No: Thomas ..... Resolution 2006-113. adopting the small boat harbor enterprise fund budget for calendar year 2007. Erchinger said this budget was unchanged since last time, and was happy to answer any questions. Motion (Thomas/Amberg) Approve Resolution 2006-113 In response to Schafer, Erchinger stated the harbor would not fill the new harbor worker position until spring, when the slips were created. The big increase Schafer noted was mainly due to the impact of the large PERS increase, Erchinger stated. Motion Passed Unanimous Resolution 2006-115. adopting the motor pool internal service fund budget for calendar year 2007. Erchinger said this budget was also unchanged, except for removal of a snow blower purchase in the capital outlay section. .... Motion (Thomas/Bardarson) Approve Resolution 2006-115 City of Seward, Alaska November 27, 2006 City Council Minutes Volume 37, Page 290 Schafer inquired about the dump truck purchase for $80,000. He thought it would be cheaper if the city leased equipment from the private sector, instead of owning. Erchinger thought rather than strike this from the budget; maybe this purchase should be determined to lease or purchase a dump truck when it would come before the council in a resolution. j Motion Passed Yes: Amberg, Bardarson, Thomas, Valdatta, Mayor Shafer No: Schafer NEW BUSINESS Resolutions Resolution 2006-131. assigning the Port and Commerce Advisory Board (PACAB) to review and update the Seward Marine Industrial Center Development Plan. Erchinger stated administration had been working on a number of different plans that needed revision. The Seward Marine Industrial Center (SMIC) Development Plan needed updating, as it had been since 1995 since the plan was originally adopted. Erchinger stated a full scale review and update needed to be visited. Everyone needed to think about the future of the area. It was important to plan appropriately to maximize the use ofthe land and this resolution was asking P ACAB to kick this project off. ...J Motion (Thomas/Amberg) Approve Resolution 2006-131 Valdatta was concerned about the land prices and the junk lots in the SMIC area. They were becoming a problem. Erchinger hoped this was something P ACAB would look at, how to stimulate economic development. Bardarson agreed on the junk lots, something needed to be done. She suggested adding some kind of teeth in the plan to address this. Erchinger said this was a costly venture, but worth looking at. Schafer said some of the junk had been totally abandoned. This could be a huge cost to clean it up. Mayor Shafer agreed, and pointed out it was costly. Maybe someone could post a bond to get the junk removed. Motion Passed Unanimous OTHER NEW BUSINESS ITEMS Discussion on city manager hire procedures and possibly setting a work session. City Clerk Jean Lewis said advertising went out today and would continue until January 30,2007. The next step would be looking through applications, but didn't anticipate that to happen right away. Lewis suggested bringing in public members to help interview applicants. ~ I ...... City of Seward, Alaska November 27,2006 City Council Minutes Volume 37, Page 291 INFORMATIONAL ITEMS AND REPORTS (No action required) .... October 2006 financials for Seward Providence Medical Center. COUNCIL COMMENTS Bardarson, thanked Finance for all of their work done on the budget. She thanked whichever department that fixed the 2nd Avenue Bridge to the Two Lakes Trail. She also thanked the six interim city manager applicants. The Angel Tree Program was a wonderful program and thanked the Fire Department for doing this each year. Amberg, said the ice skating at 2nd Lake was great to see. She thanked the city personnel who maintained this area for allowing everyone to enjoy. Thomas, thanked Erchinger, the department heads and Clark Corbridge for their work on the budget. He also appreciated the Fire Department's efforts with the Angel Tree Program. Schafer, commended Erchinger for her work on the budget. P ACAB should be given charge of researching the cargo fee and give recommendations to council. There was enough diversity to help point council in the right direction on this issue. .... Valdatta, said he heard there was a weed problem on 2nd Lake. The Arts and Crafts Fair was coming up this weekend, which was a great ordeal. Dunham and Valdatta sat through some stranded gas act meetings. A recent stipulation was made that any port that received any ofthe gas from the proposed gas pipe line would get a penance for the usage of it. He felt the non-profits should be paying this, too. Mayor Shafer, thanked the Finance Department and the department heads for their hard work on the budget. It was quite a process, and she wished the city had more money. Depending on favorable references and contract negotiations, Council decided to offer Marvin Yoder the position for interim city manager. This year had been a tough year in many respects. There was a lot of disagreement in the community on several issues. It was important for everyone to remember that the citizens, council, and staff were all good people and entitled to express their own opinions. Everyone wanted what was best for Seward. It was good to depend on one another, and she hoped everyone would remember that. CITIZENS' COMMENTS Polly Egger, announced the Christmas Tree Donation Program sponsored Providence Hospital. It was this weekend at the Hotel Edgewater. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS .... ADJOURNMENT The meeting was adjourned at 8:50 p.m. City of Seward, Alaska November 27,2006 (City Seal) ..~~1UII'"",,, ~\ l".: t'\~: "tt" ~.;.. _lOr >:11.:;"/1;, ~..., ~... ~""' .........f'J.:'~~A!'\ ", ~ () ...OX\PO~'; ...'.,,/\ .:. ~ ..,(,) . 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