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HomeMy WebLinkAbout02252008 City Council MinutesCity ofSewurd, Alaska City Council Minutes February 25, 2008 Volume 37 Page 506 CALL TO ORDER The February 25, 2008 regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Clark Corbridge. OPENING CEREMONY Police Chief Tom Clemons ]ed the pledge of allegiance to the flag ROLL CALL There were present: Clark Corbridge presiding and Linda Amberg Bob Valdatta Tom Smith Betsy Kellar Jean Bardarson comprising a quorum of the Council; and Phillip Oates, City Manager Johanna Dollerhide, Acting City Clerk ABSENT -Willard Dunham CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Steven Heinrich, was applying for the Planning and Zoning Commission and introduced himself to the council. Heinrich had past planning commission experience and hoped council would consider his application for the Commission. He was new to Seward, so he felt he could offer a new and unbiased approach to the Commission. APPROVAL OF AGENDA AND CONSENT AGENDA By unanimous consent, council approved the agenda and consent agenda. The following was added to the agenda: Per the city manager's request, council added an item under Other New Business Items, Discuss The Summary Judgement in the Resurrection Bay Conservation Alliance vs City litigation. Resolution 2008-014 was moved from the consent agenda to the regular agenda. The clerk read the following approved consent agenda items: The January 28, 2008 and February 11, 2008 regular city council meeting minutes were City of Seward, Alaska City Council Minutes February 25, 2008 Volume .?7, Page 507 approved. Council approved sending a letter inviting Senator Gary Stevens, Representative Seaton, Mayor Williams, Senator Ted Stevens, Senator Murkowski, Representative Young, Governor Palin and Lt. Governor Parnell to the PARKS Playground opening. Appointed applicant Steven Heinrich to the Planning and Zoning Commission, with a term to expire 2011. Ordinance 2008-002, Rescinding Ordinance 2008-001 And Ordinance 2007-010, To Eliminate The Proposed Increase In The Sales Tax Cap From $500 To $1,000, And Retaining A Sales Tax Cap Of $500. (introduced and set for public hearing on March 10, 2008) Resolution 2008-013, Purchasing Two Fence Pickets For The PARKS Seward Community Playground Project On Behalf Of Seward's Sister Cities Of Obihiro, Japan, And Kushiro, Japan. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A Sponsor Appreciation Proclamation for the Seward Parks and Recreation Department was read. Borough Assembly Report. Borough Assembly Representative Ron Long stated the Ordinance to regulate road conditions failed on a 4-4 vote. He didn't think it was the end of the ordinance, though. Much of the meeting on February 19, 2008 was spent discussing having the borough contract for the confiscation of vicious dogs, which failed by a 7-1 vote. Long would be traveling to Washington, D.C. next week and welcomed any feedback to pass along to the borough's legislators. City Manager's Report. City Manager Phillip Oates congratulated Parks and Recreation and the many sponsors who supported the department. Oates stated he would be leaving the next day to Juneau to meet with members of the cabinet and legislators. He met with Senator Murkowski during her trip to Seward last week. Also, Oates met with Juneau Mayor Bruce Botelho in an editorial meeting with the Anchorage Daily News for a discussion of Senate Bill 168, a bill that revised legislation for the Cruise Ship Head Tax. In the Harbor Department, Oates was pleased to announce that Kari Anderson started as Harbormaster today. An oil spill occurred on February 20, 2008 in the small boat harbor from an older fishing boat. It was a 50 gallon diesel spill as a result of an improper closure of a tank valve. The US Coast Guard Marine Safety Office was notified and inspected the spill. Containment and spill clean up costs for the city were approximately $1,500 and the boat owner contacted Storm Chasers to clean up the spill. The I & T Dock project was progressing on schedule but some unforeseen construction problems and challenges in managing the proj ect may require a request for additional funds at the next Council meeting. City of Seward, Alaska City Council Minutes February 25, 2008 Volume 37 Page S08 In Finance, it was beginning to appear that the US Army Corps of Engineers was not going to issue a permit to construct the North Forest Acres Levee Road in the alignment approved by council. NRCS was also indicating that an environmental impact study may be required for that alignment. Oates stated he would be scheduling a work session in the near future to consider possible courses of actions for this project. The Finance Department was in the midst ofpreparing for the annual audit and the 2008 final budget documents were issued to the council members. In Public Works, the new snow-blower had been put to use and was working great. There were several avalanches last week on Lowell Point Road. Crews would not clear avalanches in the dark, so Oates asked for patience for those impacted by the road closure. The shop had been busy working on the sander/plow truck. The front plow was damaged and staff was having trouble finding repair pieces. The background infonnation for the Water Source Study by M.L. Foster and Associates was complete. Staff would be scheduling a work session in the future to discuss the results of the study and priorities for water department capital projects. The Police Department was busy interviewing for the DMV position and staff hoped to have someone hired by the end of this week with a potential office opening by mid March. Larry Kocur had submitted his resignation to the department. On behalf of the City of Seward, Oates thanked Larry for his outstanding performance to the city as a patrol officer and wished him well with his rehabilitation and physical therapy. Oates listed potential capital projects and cruise ship head tax revenue projects for proposed funding to the federal and state legislators. These projects were in addition to those listed on the city, state, and federal legislative priority lists. Oates also briefed the council on grants and funding he was lobbying for. Chamber of Commerce Report. Chamber Director Laura Cloward stated the chamber was still calculating February numbers, but January numbers looked positive. They had received increased traffic on the website. Next week in Seward there would be an international travel familiarization tour from the U.K. and Taiwan. The Chamber was focusing on magazines and brochures. Seward would be hosting the Regional Tourism Conference for the Kenai Peninsula Borough in March. Seward Planning and Zoning Commission Report. Chair Marianna Keil stated the Commission recently approved an extension for the Spring Creek Correctional Center and a Conditional Use Permit for placement of a bar in the New Seward Hotel and a re-zone to auto commercial, which would all be coming to council soon for approval. She welcomed Heinrich to the Planning and Zoning Commission and hoped they could fill the last vacancy soon. Keil mentioned there was some concern with the Public Financial Disclosure Statement which was required of the Commission members to complete. School Board Report. Lynn Hohl stated the next School Board meeting would be March 3, ~.. 2008 in Homer, where they would have the first reading of the 2008-2009 budget. Hohl announced the recent openings in education in Seward. HB 273, the education funding bill, was approved and forwarded on to the Senate. The School Board approved a policy that changed the way school City of Seward, Alaska City Council Minutes February 25, 2008 Volume 37, Page 509 facilities were named, requiring at least a two year moratorium on naming facilities after those who had passed away. LibrarylMuseum Report. Librarian Patty Linville briefed the council on the library museum project. The New Year's Eve Ball was a wonderful success and Linville thanked all who helped contribute and volunteered their time. It was a great time and a successful fundraiser, bringing in over $29,000 in revenue. After expenses, the steering committee was over $17,000 richer for the project. Linville noted the committee was making steady progress and noted current legislation and grant opportunities available. She stated plans for the New Year included gaining input on design concepts from the public and planning for a library service area or bond proposal. She invited all to the March 1, 2008 wine tasting fundraiser event and reminded Seward to support the PARKS project. The library was now accepting passport applications. Oates stated he had attended the last library/museum steering committee meeting. He felt at some point, this issue needed to come before the city council and possibly to the citizen's of Seward to make sure the project was supported. The city needed to think of creative ways to fund this facility. Other Reports, Special Presentations Parks and Recreation Annual Report. Parks and Recreation Director Karin Sturdy thanked council for the opportunity to give thanks to all of Parks and Recreation's sponsors. Sturdy gave a brief report on the Teen and Youth Center, Sports and Recreation, and the Campgrounds. She felt the numbers were positive and stated the many successful programs that occurred throughout the ,.,,, year. NEW BUSINESS Resolutions Resolution 2008-014, Authorizing The City Manager To Enter Into A Transformer Use Agreement With Chugach Electric Association Inc. For Use Of A Power Transformer. Motion (Bardarson/Smith) Approve Resolution 2008-015 Oates gave council some background justification. The transformer located at Lawing Substation failed and the city was currently receiving power from Chugach Electric Association. The city was having difficulty getting exact quotes, but the approximate cost of a transformer was $60,000 used or $150,000 new. CEA was offering to lend the city their transformer, and the city would only have to assume the transportation, installation and removal costs and acceptance of financial liability. Oates stated this resolution may not actually have to go into effect, as the city was pursuing other options, but he recommended approval in case other alternative solutions were not successful. In response to Kellar, Oates stated CEA's service used not was not as credible and capable as the city's. Oates stated this was a redundant revision of power. Reliability of power was crucial, City of Seward, Alaska City Council Minutes February 25, 2008 volume 37, Page 510 especially in the winter months. It was advantageous for when Chugach Power went down for the city to be able to produce power on its own. In response to Smith, Electric Utility Manager Tim Barnum stated this transformer was currently being used as a spare, and he guessed it was 15+ years of age. He felt it was a better long term care solution to what the city was doing now. Motion Passed Unanimous Resolution 2008-015. Authorizing The City Manager To Enter Into A Memorandum Of Understanding With The State Of Alaska For Planning, Financing, Design, And Construction Of The Spring Creek Correctional Center Expansion Project, And Appropriating $100,000 To Be Reimbursed From Future Bond Proceeds. Motion (Bardarson/Smith) Approve Resolution 2008-015 Oates stated recent discussions with the Department of Corrections had determined the city would not need to appropriate $100,000 to be reimbursed from future bond proceeds. The bond council had told the City of Seward to proceed directly ahead to the bonding process because of the urgent nature of the expansion and that the risk was worthwhile. He recommended keeping the provision in the resolution for safekeeping measures, especially since the funds were to be reimbursed anyway. Valdatta didn't think the state could afford to go with the low bidder on the expansion project. Oates stated it was the Department of Correction's decision, not the city's. In response to Bardarson, Oates said the city would be responsible for managing the utilities. In response to Corbridge, Oates did not anticipate any change in how the city would manage the utilities with the facility, whether it was expanded or not. Motion Passed Other New Business Items Unanimous Discussion and update of the Resurrection Bay Conservation Alliance lawsuit. City Manager Oates noted a ruling of the lawsuit with the City and the RBCA. The ruling of the court was the city was an "operator" of industrial facilities, which discharged storm water into the waters of the United States, and therefore the city must apply for an NPDES permit. The courts had concluded the Seward Small Boat Harbor and the Boat Repair Area were industrial facilities under Standard Industrial Classifications inthe Clean Water Act and that the City retained sufficient involvement in and control of both the SMIC Boat Repair Area and the Seward Small Boat Harbor to make it the "operator." Oates stated it was important to note that the court was not saying that storm waters contained toxic substances or contaminants and civil penalties were not appropriate in this case. Each party was responsible for its own legal cost and either side had the option to appeal this decision to the higher courts. City of Seward, Alaska City Council Minutes February 25, 1008 Volume 37, Page 5l / Oates listed several courses of actions to pursue including applying for the NPDES permit, appealing this judgment to the 9`h Circuit Court ofAppeals, close down the uplands boat area and get out ofthe ,,,,,~ marine industrial business altogether, outsource the area to another entity or Seward Ships Drydock and let someone else take over responsibility of the industrial area. Council directed the city manager to schedule an executive session on the March 10, 2008 agenda prior to the meeting, as the legal counsel would be back by then. Oates assured council staff would bring the new harbormaster up to speed on this issue. INFORMATIONAL ITEMS AND REPORTS (No action required) Teen & Youth Center's 2007 Year-End Report. Sports & Recreation Department's Year-End Report. Campground Season End Report. City of Seward January Financial Report. (was presented as a laydown) Providence Seward Medical Center Financial Report for December and January. Discussion ensued on the operations of Providence. Kellar did not understand why the city was budgeting to lose $300,000, but in fact lost over $900,000, based on the financial reports. Finance Director Kris Erchinger responded these were pertinent questions and topics that were addressed each year. Losses were expected for a period of the next two years. The problem was that the building the current long term care facility was in had reached the end of its useful life, so the City was no longer being reimbursed for capital costs. The day the new facility is opened, the city will begin receiving capital cost reimbursements (the City will not be reimbursed for these losses). Since collocation of the hospital and the long term care facility, the two facilities had been operating in the black, unti12007 when the rates were rebased. To address the reduction in reimbursement rates, the city manager and Erchinger had been lobbying with the Department of Health and Social Services in Juneau to seek financial assistance to help cover costs until the city got into the new facility. They were in discussions right now and had a few strategies in mind. It was at the state's urging that the city step in and help until the new long term care facility was built. Oates stated they did receive some indication if the city was able to find from past commissioners to indicate some commitment on the state's behalf, it would help Seward's case. He had spoken with fellow commissioners for assistance in this regard and Erchinger was speaking with Providence in hopes of a loan to help pay for this shortfall. The city knew full well that going into this long term care facility project that they would face this shortfall. In response to Kellar, Erchinger stated the money would come from the general fund if it had to. Staff was trying to come up with alternative sources to prevent this. Kellar felt staff should look at other options and it was wise to listen to many suggestions. Oates stated the onlywayto maintain an emergency room in Seward was to take on the responsibility of the long term care facility. He felt City ofSewar~t Alaska City Council Minutes February 25 2008 Volume 37, Page 512 the approach they were on was valid and sound, it just needed to be executed. Erchinger appreciated Kellar's concerns; her consolation was that when they hired an independent firm to estimate the financial situation with Providence and the long term care facility, these losses were estimated almost to the dollar. If these losses had not been anticipated, she would feel just as concerned as Kellar. Staff had made the appropriate measurements to compensate for this loss. In response to Kellar, Erchinger reported the hospital was on the same budget cycle as the city, a calendar year cycle. COUNCIL COMMENTS Bardarson, thanked the Clerk's office for having the opportunity to view her council packet online, as she was able to read her packet when traveling out to state and she was ready for tonight's meeting. Amberg, questioned the Public Official Financial Disclosure Statement required by the Alaska Public Offices Commission (APOC), and noted in 2009 the public financial disclosure statements would be online for anyone to view. Smith, thanked the people who sponsored the Parks and Recreation Department and' gave thanks to the small businesses in the community. They really put out a lot of money to support the community. CITIZENS' COMMENTS -None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS -None ADJOURNMENT The meeting was adjourned at 9:46 p.m. -~ - ~"Gtl~ ;G~,~t.G~~ C~- J hanna Dollerhide, CMC Clark Corbridge Acting City Clerk Mayor (City Seal) ,.•y O rNq''+, • ~,r'e~pO "' .~ _... ~ s~~ ~ • _-•-- ••a...~,.. aJ •~ '••qr~ of A~~..'.