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HomeMy WebLinkAbout11092009 City Council Minutes City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 180 CALL TO ORDER The November 9, 2009 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance to the flag Mayor Willard Dunham called for a suspension of the rules to allow for a moment of silence in honor of Veteran's Day and those who served for the country. ROLL CALL There were present: Willard E. Dunham presiding and Linda Amberg Jean Bardarson Bob Valdatta Tom Smith Marianna Keil Vanta Shafer comprising a quorum of the Council; and Phillip Oates, City Manager WNW Johanna Dollerhide, Acting City Clerk Cheryl Brooking, City Attorney ABSENT — None CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Jerry Dixon requested the Seward Police come out to his area. Dixon stated he had been assaulted twice and has had no response from the Alaska State Troopers. From drunken driving and bullets being shot in his neighborhood, he had no luck with getting assistance from the Troopers. Recently they had a car stolen and Dixon was very frustrated with the results from state authorities and requested Seward Police please come out to Nash Road, even thought it was out of their j urisdiction. Karin Sturdy announced the members of the TYC council to the council and public. She announced the various jobs and duties of those who served on the TYC council and noted the City Council met with the Teen Youth Council earlier this evening for a pizza party. The youth council members then announced their name and how many years they had served on the council. Howard Ferren thanked council for supporting 2009 -120, which was on the consent agenda. Alan Parks with the Alaska Marine Conservation Council attended a council meeting and presented City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 181 on the Alaska Coastal Communities Climate Change Compact earlier this year, and he appreciated council's support. Jeff Mow spoke to council on recent National Park Service activities. There was a Park Service planning meeting on November 19, 2009 regarding development of the Herman Leirer Multi Modal Trail, with in mind of alternative access at Exit Glacier. This was not to be confused with another project out at Exit Glacier, which was a traditional use study of the area. Paul Tougas stated he had initiated some discussion on the requirements for public notice in regards to newspapers and web media, and felt it was a discussion for 2010. Tim McDonald spoke on the clerk's office and he was very happy with their office. The right information was a legal right and felt transparency in government was worth protecting. Tom Tougas spoke on Resolution 2009 -122 and wanted to know what this plan was and wished council to refer this item to PACAB before approval. He would like to see more public input on this item before approval. Ron Long wanted to be clear that council directed PACAB to come up with a North East Harbor Development Plan, which they did and it went to council. If they did refer Resolution 2009- 122 to PACAB tonight, they would like to look at it, if not distinguish some particular items. APPROVAL OF AGENDA AND CONSENT AGENDA -- Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda Motion Passed Unanimous The following was added to the agenda: Discussion Item on Flood Board Openings under Other New Business Items The clerk read the following approved consent agenda items: Resolution 2009 -119, Accepting A Grant In The Amount Of $1,827.30 From The Alaska Highway Safety Office For 2010 First Quarter Alaska Strategic Traffic Enforcement Program (ASTEP) Driving Under The Influence (DUI) Enforcement Campaign And Appropriating Funds. Resolution 2009 -120, Supporting The Alaska Coastal Communities Global Climate Change Compact. Resolution 2009 -121, Authorizing The City Manager to Enter Into A Purchase Agreement For 30,000 Feet Of 1 /10, 15KV Primary Wire For A Total Amount Not To Exceed $59,850.00. -- City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 182 Resolution 2009 -123, Approving Amendment No. 14 To The Contract With Hoffman, Silver, Gilman & Blasco, P.C. To Extend The Term For Federal Lobbying Representation Through December 31, 2011 For A Total Of $6,416.66 Per Quarter In 2010 And $7,058.33 Per Quarter In 2011. Resolution 2009 -124, Approving Amendment No. 21 To The Contract With Kent Dawson Company, Inc. For State Lobbying Services Through December 31, 2011 For A Total Of $19,250 Per Quarter. Non - Objection to the liquor license renewal for Chinook's Waterfront. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Borough Assembly Report. Sue McClure stated she was settling in on the Borough Assembly and had attended many community meetings since her election on the Assembly. She had been reporting on Seward City News and the Phoenix Log and intended to continue that. McClure encouraged the public to contact her. On tomorrow's agenda was introduction of an ordinance that would amend title 16 to allow for board members to be appointed by the Mayor and confirmed by the Assembly when a vacancy occurred outside of the election cycle. She had received some phone calls on that issue and encouraged more input. Also on tomorrow night's agenda was the introduction of Ordinance 2009 -50, which would require retail sellers of liquid petroleum products to file a monthly report with the Kenai Peninsula Borough concerning the quantity of such products sold. Also before the Assembly would be the authorization of award for contract and maintenance for waste management through 2012. McClure noted all of this information can be accessed by the borough website. City Manager's Report. City Manager Phillip Oates stated he met with the Deputy Commissioner of the Department of Natural Resources regarding flood mitigation and navigability of streams. Oates felt he was successful in arguing that it did not make sense to charge communities to extract gravel. The City Manager has approved the following purchase: thirty 55- gallons drums of oil and antifreeze for regular servicing of electrical generators for 537,708.20. The City Manager was also intending to purchase a Skid Steer Mini Loader and 185 CFM Air Compressor, both for the electric department. On December 2, 2009 at 6:30 p.m., the Department of Homeland Security /Emergency Management, State of Alaska Seismologist and others would be in Seward to review the Tsunami Inundation Map and other issues with City staff and members of the public. The City was working to establish a quarry contract with West Construction (Anchorage, Alaska) who was awarded the Breakwater Extension Project by the US Army Corps of Engineers. The Harbor was working with Alaska Logistics to develop a lease for Lot 2, Block 3 at SMIC. The Harbormaster and a representative from the Chamber would attend the Pacific Marine Expo in Seattle November 19 -21, 2009 to promote the Harbor and SMIC. City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 183 The new sand /plower truck had been ordered and should arrive at a perfect time to be put to good use. Public works would face the onset of winter with a full staff The new water tanker should arrive any time. Reminder: Please remove all items from the right -of -way in preparation for winter road maintenance. Mayoral Report. Mayor Willard E. Dunham reported on his recent travels on behalf of the City of Seward. Other Reports, Special Presentations PUBLIC HEARING Resolution 2009 -104 through 2009 -114, Adoption Of Fiscal Years 2010 And 2011 City Budget, Consisting Of General Funds, Enterprise Funds, Motor Pool Fund, Debt Service Funds 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. Tim McDonald felt SMIC was slated for a loss for three years straight and encouraged council to do something about it. Tom Tougas had concerns with the projected revenue budget. In 2008, his company paid the City of Seward $544,171.98 in sales tax and head tax. In 2009, they would pay $429,601 in sales tax and head tax. Revenues were down $800,000. Sales tax on tours and fishing charters alone would be drastically down. Tougas stated it was critical to look at the real sales projections, as each year the projections were going to decline. He felt the decrease was mostly driven by the high cost of fuel and the seasons were getting shorter. If the city continued to add to the costs to do business, more seasonal businesses would be put out of business. The public hearing was closed. Shafer wanted to know if staff had a plan if the projections were as low as some were anticipating. Oates responded administration did have plans if that was the case. There were some areas where revenue was up, but obviously tourism numbers were not. Finance Director Kris Erchinger stated the goal was to look as broadly as possible. Unfortunately, the best place to get information was retrospective. Third quarter projections of the city sales tax, typically the largest figure of the year, were not yet in from the borough. Erchinger stated they had to look at gross sales and what was going on in community as a whole. Tourism was down about 31 %, but everything was up in the air. Thankfully the community was not heavily reliant on the tourism industry, but still was somewhat reliant on it. Staff had cut back tremendously on the motor pool fund, and was being as aware as possible to kccp costs down. Keil felt very uneasy about passing a budget without the current sales tax figures. Erchinger stated she thought they may have them by Nov. 20, 2009, but it still might not be an accurate representation of the numbers, for reasons such as delinquent filers. Oates stated this was a working document, and it could always be amended and re- evaluated as projections and figures became avai lablc. City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 184 Smith understood the problems before administration. Until they received the sales tax numbers, they really didn't know. He didn't know if he was comfortable with the assumptions or not, but it really was anyone's guess. Dunham commented on the lack of staff layoffs. He was proud the city wasn't laying anyone off, that administration was able to balance the budget hut still hold on to the staff, as keeping staff was still a dispersal of funds back into the city. Bardarson wanted to say in fairness of the borough, the third quarter reports weren't due until the end of October. Keil wanted council to consider privatizing roads and streets in 201 1. It was too late to do it for 2010. Amberg added this had been brought up many times in the past, contracting services out. There were qualified businesses in town to do some city work. The city did not have to be the employer; she would like to see that be discussed again. Resolution 2009 -115, Amending The Electric Rates And Charges Tariff To Include Automatic Annual Adjustments To All Rates And Fees By An Amount Equal To The Previous Five Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers, And Automatic Pass- Through Of Rate Increases From Chugach Electric Association. Motion (Bardarson /Smith) Approve Resolution 2009 -115 Oates stated this was probably the most critical of all tariff changes tonight. This resolution presented a 5% increase in 2010, a 5% increase in 2011, and thereafter based on the CPI. Staff eliminated the industrial rate, which affected the Alaska Railroad, the Alaska Sealifc Center, and Icicle Seafoods. The city manager was preparing to establish special electrical rates at the December 14, 2009 council meeting for these three businesses. A rate study had not been done since 1993, and even then it was decided not to increase as recommended. It was unfortunate to bring these increases to council when economic times were as difficult as they were, but the condition of the critical infrastructure outweighed in importance and the utility was seriously underfunded. Erchinger passed out possible rate increases for the average residential customer. Water and sewer had been added, with respect to both residents inside and outside city limits. For inside city limits, users could expect their bill to go up 5.19% and outside users 5.82 %. The fuel factor could always change these figures, also. Oates stated this tariff also passed on any increases Chugach Electric tagged on, which the city could no longer afford not to pass on to their customers. Electric Utility Manager John Foutz noted any decreases received from Chugach Electric would he passed along to the customer as well. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tom Shirk, spoke on behalf of the Seward Windsong Lodge. He felt the resolution was not City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 185 clear for indicating the actual proposed increases. With standard rate increases, Shirk estimated they would be paying 10 -12% more. As stated earlier, tourism was down this year, and the Windsong was down 40 %, with projections of business continuing to decline. Workforces were reduced and they had to take whatever action possible to reduce energy costs. Even so, 2009 costs were $105,000 in electric, which equates to a $5,700 increase in utility rates. Shirk stated the City of Seward needed to run their business the way any other business in Seward did, which was by cutting back. Rhonda Hubbard, thought it was presumptive to assume no one would want to buy the electric utility. She thought it worthwhile the council consider it. She disagreed with the mayor that the city did not need to cut workers and asked what was wrong with contract labor. The most disconcerting was raising these rates with a large population outside of city limits without representation. She had talked with Homer Electric and was sad Seward was just now considering net metering. Hubbard encouraged council to consider alternative energy ideas. Tim McDonald, thought Hubbard may be on to something. The city should look at a long term plan. He stated Seward had some of the best renewable energy potential in Alaska with tidal, rain, wind, and hydro. It was something to for the future to study and the utility be phased out as obsolete methods of power generation. There was merit in these thoughts. The public hearing was closed. Valdatta commented on the street lights and that he had heard our electric lines were in terrible shape. He was in favor of raising fees for improvements of items like street lights. Smith said the city could go to alternative sources of electricity. Seward didn't generate electricity, the problem was the distribution. The wires, poles, transformers, all of these responsibilities would exist no matter what kind of energy was pushing out the power. Keil thought council was raising the KW hours by 5 %, but it now appeared to her it was an overall increase. Shafer agreed. So many were one time uses, she didn't feel it was worth debating, though. Oates commented a lot of people thought they knew what the status of the utility was, but he felt pretty up to speed on the condition. Renewable power was tremendously expensive to establish. The city may get to the point where the most prudent thing to do was sell the utility. At this point, Oates didn't feel it was viable. Someone might buy it, but probably wouldn't pursue emergency back up generation for the community. Shafer stated she would like Oates to look at special rates for hotel /motels. Dunham stated Seward had some areas with lines that gave up to a 40% loss. There were problems in the system. It was a painful increase, but he also pointed out they have not raised rates and now may be the time to do it. It was time to repair. Bardarson wanted clarification on the 5% increase. Erchinger stated the increase was 5% in 2010, 5% in 2011, and whatever the Consumer Price Index increase was thereafter. The way this City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 186 resolution was made before the council, in 2012, the CPI increase would be implemented each year until council changed that. Keil was not comfortable with the automatic increase, neither was Amberg. Oates clarified that CPI was only to keep up with inflation. Not having a CPI j ust gels you behind, as the city already was. Motion Passed Unanimous Council recessed at 9:12 p.m. Council resumed 9:21 p.m. Motion to Reconsider (KeiUBardarson) Reconsider 2009 -115 Keil felt the title language was confusing and she thought they were just reviewing these for public hearing tonight like the budget resolutions. She was not under the impression this resolution was up for adoption tonight. Smith said they could always amend the tariff and give direction to look at special rates. Oates stated they had a provision for a special rate in the tariff and the code. He planned to bring these resolutions for special rates back to council on the December 14, 2009 meeting. Motion to Reconsider Failed Unanimous Resolution 2009 -116, Amending The Port And Harbor Tariff And Providing For Automatic Annual Adjustments To Moorage And Dockage Rates By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Motion (Bardarson /Amberg) Approve Resolution 2009 -116 Oates stated this resolution addressed an increase to the rate structure of the CPI which was 2.8% in 2010 and 3.1% in 2011. Ilarbormaster Kari Anderson restated the changes before the council. There was a moorage rate increase and the introduction of a capital renewal /replacement fee. She felt there were appropriate amendments to make for larger vessels. The electric infrastructure fee and fish tax would go directly to harbor to replace D -float. Rate structures in SMIC storage fees were adjusted to not promote long term storage or abandoned vessels. Staff was trying to make sure they could do replacement/maintenance on places in the harbor that were given to the city by the state in poor condition. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Ron Wille talked about what these changes meant to Kenai Fjord Tours. Neither of these were modest increases, he felt. When adding fees for the capital repair /replacement fund, the moorage expenses for KFT went up 12 %. The corresponding increase with storage across the bay City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 187 would go up over 70% for storage at SMIC. It was cheaper for him to put his big boats in the water than to keep in storage. Another hard hit was the changes as proposed would cause them to make •• additional personnel cuts. There had already been a reduction in staff and he had to reduce for the upcoming year already. By unanimous consent, Council suspended the rules to allow Wille to continue speaking. Wille offered proposed amendment ideas and suggested council institute a hiring freeze. The resolution stated the enterprise funds were operated in a manner equivalent to a private business. What his company had to do was hold the line on costs; and the city should really cut costs instead of raising rates if they acted like a private business. Tim McDonald, suggested on the derelict boat problem to set a reasonable time limit instead of waiting for a decade of arrears in payment. Susan Kaanta, had been involved with the harbor for many years. There had been many promises of improvement, but no real product seen. When the city got the harbor from the state, there had been many problems and things were confusing. She would like to encourage accountability on additional raised rates. Rhonda Hubbard, felt it was getting harder and harder to get fishermen to Seward. She hoped Seward could improve the hospitality for fishermen and transients. Hubbard needed clarification on the capital renewal and replacement fee in regards to the fishing industry. She was frustrated with all the increased fees but was glad to see the general fund giving up the fish tax. Hubbard thought the city should petition the borough for their portion as well. She felt the lack of accountability really decreased people corning to Seward to use the harbor. Diane Dubuc, was a resident and small boat harbor business owner in Seward. She was frustrated with the increase in fees as well. Proposed was a raise in slip fees, moorage increases, and plus sales tax. She was not in a position to increase fees to her guests. Visitors wanted a deal and would go the furthest to get it. She asked council to look at proposed maintenance tariff. Ron Long, stated PACAB did the best they could in reviewing the budget. He noted the board did not have the operational budget in front of them when making recommendations. The board was looking to turn the dynamic around in SMIC when coming up with storage fees in that area. Long wanted to encourage business and hope the council would attempt to meet the user halfway, and not put all the increases on the user for the harbor improvements. He also was a business man in the harbor who had to lay off workers who live in Seward. Tom Tougas, stated he would never ask for a special rate for his company. He wanted to be part of a vibrant, healthy economy. They were talking about capital intensive businesses and a portion of the moorage rate goes to operations and a portion of the CPI increase should go to capital improvements. Tougas noted as fares increased, sales and property tax would decrease. The public hearing was closed. City ofSeward. A laska City Council Minutes November 09, 2009 Volume 38, Page 188 Bardarson understood derelict problem, but also agreed that these were the people who did not bother to pay initially, and asked was it really going to accomplish getting rid of derelict vessels? Oates stated part of the problem was they become man power intensive. He agreed with Bardarson's derelict boat comment, it didn't matter what you charged, they weren't going to pay. Anderson stated there were several tiers of problems with SMIC and derelict vessels. Oates stated they wanted to encourage people to come over, but didn't want to encourage them staying too long. Motion to Amend (Bardarson /Keil) Amend Resolution 2009 -116 Section 280 subsection 2 of the 2010 and 2011 Harbor Tariff from a lay time rate of $.15 to $.10 per linear foot of the overall length of the vessel per calendar day, from 180 days to one year, and from $.30 to $.20 for charges for stays over one year. In lieu of the 10:30 p.m. time restraints, council recessed the November 9, 2009 regular city meeting to the following day, immediately following the Seward Ship's Drydock scheduled work session at 11:00 a.m. in the city council chambers. Council recessed at 10:30 p.m. *****************************************:******* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** ************************************************ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** The November 9, 2009 City Council Meeting resumed at 12:24 p.m. on November 10, 2009. On the floor was a main motion to approve Resolution 2009 -116 and a motion to amend Resolution 2009 -116. Anderson dispensed out a hand out to council to run some numbers by council. With these changes, they may go backwards with stays less than 30 days. The proposed amendment for $.10 was slight and doable, she felt. Motion to Amend Passed Unanimous Shafer was not comfortable in annual changes not going before council each year. She wasn't sure if it should be automatic. She realized why moorage rates had to increase, but the harbor was a major economic generator the city, and if they kept hitting people with fees, she was worried they would lose people. Oates' concerns were paying off the revenue bonds in the harbor and to build up a bigger reserve in the harbor. D float and dredging needed to be done. if they cut the budget back too much, they wouldn't be able to get too many things. Shafer wanted to see a professional assessment of the float to see how much that would cost. City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 189 Oates stated another challenge was to receive grants they had to provide matching funds. Erchinger pointed out the cash flow statement of the harbor budget and the entire budget would have ._ an increase in cash of approximately $3,806. The city gave all $365,000 of fish tax to harbor, gave half to MMRF for the first time in 15 years, she estimated. Their goals were to work on capital improvements, get debt paid, and breaking even. If passenger fees stayed low, the city would still have to pay bond payments; and the maintenance fund would have to go on back burner because bond payments must come first. The increase in fees was to fix some problems, one of them being with paying the bond payments down the road. Keil argued more boats would be leaving Seward if they kept raising rates. Shafer wanted to delay on the capital renewal and replacement fee for one year. She was worried they would hurt the businesses too mucli. She thought they had to be realistic about what people were facing out there. She understood the concern, but felt the council needed to allow the businesses to generate business. Motion to Amend (Shafer /Keil) Delete Section 231, the Capital Replacement and Renewal Fee, in the 2010 tariff, but leave in the 2011 tariff and change the fees for vessels 45 to 79 feet from $20.00 to $15.00 and vessels 80 feet and longer from $30.00 to $20.00. Oates supported the amendment. It was needed but it was not the time to introduce the -- capital renewal and replacement fee. He would ask for continued support of the CPI increase. Anderson stated out of 600, maybe 90 vessels would be over 45 feet in length. Smith said if they got the Exxon Valdez settlement money, the city would be able to fix D -float. if they charged each boat a yearly fee, he estimated it would be $30,000 roughly. He felt they have time to build up for other things, but D -float needed to be fixed. Keil said they needed an assessment ofd -float. Motion to Amend Passed Unanimous By unanimous consent, the rules of order were suspended to allow a second public hearing on this resolution. Tim McDonald said the city should be planning for larger costs, every shiplift outside Alaska was cement and they should prepare for that. He thought they should have costs associated with people working on boats. Diane Dubuc didn't believe it was prudent to double costs of lay days. This was why boats came to Seward to die. Dubuc wanted to know why couldn't the cruise ship tax fund D float. Ron Long said this was his testimony alone. He tried to poll PACAB for some input, but was unable to deliver. He provided a lay down to council to consider. He thought in 2011, the tariff City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 190 capital renewal and replacement fee should be seen as a percentage rather than a flat fee. The tariff could be amended at any time and PACAB would be reviewing and bringing it to council later, as .r. well. An automatic CPI increase seemed convenient, however may take the public out of the process which should always go before the council. He had no heartburn with the CPI, but wanted the opportunity each year to review il. Ron Wille thanked council's support on these issues. He said Kenai Fjords Tours did not want a special rate, either. They contributed hundreds and thousands of dollars, but now with revenue down and passengers down. He thanked council for their consideration. Tim McDonald played advocate about SMIC. It should have half the effort of the harbor crew, he thought. Why was the city not considering divesting themselves 100% of the facility? If they sold SMIC, it would be under professional management. The city wouldn't have to deal with the environmental issues. If it was worth $26M as some estimated, he said sell it. Dunham responded the state was about $7 million short in coming up with their share for the boat harbor. They had never completed their sale agreement to Seward. He reminded the public that Seaton would be in Seward the next two days and hoped the public would speak to him about money in the harbor. Main Motion Passed as Amended Unanimous Resolution 2009 -117, Amending The Water Tariff And Providing For Automatic Annual Adjustments To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase 111 The Anchorage Consumer Price Index For All Urban Consumers. Motion (Bardarson /Shafer) Approve Resolution 2009 -117 Oates stated administration compared competitive water rates in the state. The real challenge was to increase rates to meet the need. They were proposing a 4.8% increase in 2010, a 5.1% increase in 2011, which was CPI plus 2% each year. Erchinger said this increase for the average customer equated to extra $4.68 per month. Public Works Director W.C. Casey stated the critical needs of the water department, including a new water storage tank, a roof on the gateway tank, and the pressure station project. He wanted to be clear on his optimism on state funding. They were given $600,000 already for the water tank project. He was optimistic with the engineering completed and ADEC approval, the city was posturing themselves to apply and be successful for 70/30 matching grant dollars from the state. Staff was working diligently to bring down the $4 million sticker price of the project. Casey stated staff was going to start working on some projects in house. He wanted council to consider the miles and miles of water /sewer main, treatment facilities, and infrastructure Seward had. It was not a matter of being able to shut part of a service off, they were all linked and needed to be operational. There were certain costs associated with infrastructure that they were stuck with. Staff was looking at energy efficiency and upgrading with more efficient equipment. City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 191 Oates stated the water in Seward was the best anywhere. Icicle Seafoods was the one .�. business in town affected by this tariff change, as well as the electric changes. Erchinger said she had proposed rescinding some previous resolutions, which would have disaggregated Icicle's bills, but after discussions, the decision was made to keep those past practices. Shafer stated the multiple increases were going to have a negative effect on some businesses. Amberg didn't like special rates. Motion Passed Unanimous Motion to Reconsider (Bardarson /Amberg) Reconsider Resolution 2009 -117 due to lack of public hearing held. Mayor Dunham noted the public hearing was not opened prior to passage of this resolution as required by law. He requested council reconsider this resolution in order to hold a public hearing. Motion to Reconsider Passed Unanimous Resolution 2009 -117, Amending The Water Tariff And Providing For Automatic Annual Adjustments To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. --- Motion (Bardarson /Shafer) Approve Resolution 2009 -117 Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Ron Long thanked the council for lunch. The public hearing was closed. Motion Passed Unanimous Consent Resolution 2009 -118, Amending The Wastewater Tariff And Providing For Automatic Annual Adjustments To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. 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 (Keil /Bardarson) Approve Resolution 2009 -118 Casey said the improvements needed were diesel engine replacement at the #4 Forest Acres Lift Station. Because of state regulations, they had to install double wall fuel tanks at several facilities. There was some bypass valving to be done at SMIC. A generator for lift station #1 at the City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 192 boat harbor was needed. Some of the critical needs had been included in the operating budget for the sewer system, which was going to save money in the long term. Erchigner reminded council that the city had hired ML Foster and Associates for a water system study and Casey has engaged them to do a similar study on the sewer system. She pointed out the critical needs list may be quite different next year. Erchinger noted this increase would equate to $2.07 month for the average user. Motion Passed Unanimous NEW BUSINESS Resolution 2009 -122, Authorizing The City Manager To Enter Into An Agreement With URS Corporation (URS) For Change Order #7 To The East Harbor Expansion Contract For An Amount Not -To- Exceed $72,041.22 And Appropriating Funds For Engineering, Design And Permitting Services For A Northeast Harbor Uplands Development Plan In The Seward Small Boat Harbor. Motion (Keil /Amberg) Approve Resolution 2009 -122 Motion to Amend (Shafer /Keil) Add the following: "Whereas, council directed the Port and Commerce Advisory Board to forward a North Harbor Development Plan, and PACAB passed Resolution 2009 -002, which includes some of the elements the contractors will consider as part of this award, and others they will not; and Whereas, in order to ensure that the engineering and design functions of this award do not preclude implementation of the remainder of the North Harbor Development Plan forwarded by PACAB, that plan and its attachments be forwarded to the contractors for consideration in their work product." Motion to Amend Passed Unanimous Bardarson had a question on the fiscal note of the agenda statement. Anderson said the funding for the project came from a Denali Commission grant, which expired in March 2010, and work had already commenced. This was in addition to their contract; this was for more of underground utilities. City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 193 Keil asked how long URS had been the engineer for this project. Anderson noted URS was formerly Tryck, Nyman and Hayes and she estimated they had been with the project since 2000. Main Motion Passed Unanimous OTHER NEW BUSINESS By unanimous consent, council recommended Cindy Ecklund for the Kenai Peninsula Borough Planning Commission vacancy to be appointed by the Borough Mayor David Carey. Discussed Advertising Media — council decided this was a discussion for later. Flood Board Openings Discussion Mayor Dunham encouraged all council members to start looking for members to fill the three vacancies on the Seward Bear Creek Flood Service Area Board. INFORMATIONAL ITEMS AND REPORTS (No action required) COUNCIL COMMENTS Shafer said the budget was always difficult but she thought they did a good job this year. Bardarson thanked the public for participating in the budget process. Dunham reminded everyone of the Veteran's Day activities tomorrow. 20 years ago the Berlin Wall carne down. On Wednesday at the Senior Center the American Legion was putting on a Veteran's Appreciation lunch. He thanked the TYC council for the presentation and dinner. Dunham congratulated Casey on the fish ditch. Representative Seaton was in Seward tomorrow and the next day. He thanked Robin Coleman for years of service to the city. CITIZENS' COMMENTS Ron Long, hoped they could keep tearing down walls. The flood board seats were valuable positions. He commended Assembly Member McClure for her neutrality. He thanked council and administration for the budget process. Not having the state budget and the 3` quarter sales tax figures made it hard to have a calendar year budget instead of a fiscal year budget. Tim McDonald, read vote results from the 1992 ballot proposition the sale or lease of SMIC, both were defeated. IIe pointed out the citizens voted to not do business with Seward Ship's Drydock anymore. The harbor side was making money, the SMIC side was not. The city had every right to revisit the contract and do away with the present situation. It was overwhelmingly not approved by the citizens of the city, and he felt this could solve a lot of budget problems. McDonald said the present situation was unacceptable. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS City of Seward, Alaska City Council Minutes November 09, 2009 Volume 38, Page 194 Keil thought there was a vote in 1994 or 1995 for the maintenance and operating agreement that did pass. Oates said the city could not sell SMIC the way the funds came to them to use the shipyard. Dunham said the conference he recently attended warned to never sell waterfront property. Bardarson was reviewing the budget process and wanted council to think about going to a fiscal year, so state money and sales tax revenues would be known. This would also alleviate new council members coming on right in the middle of budget process. There was merit to looking at the middle of the year. Shafer said when they city went to the calendar year budget they did not have a lot of public input. She regretted doing so, and agreed it would be better to have a fiscal year budget. Erchinger stated it was a huge impact on the departments on the change in schedule and to be developing the budget mid summer. She wasn't as compelled by the sales tax 3 quarter projections, because they still were always projecting forward regardless. ADMINISTRATIVE APPEAL Appgal hearing with NVision Architecture about sprinkler systems at AVTEC Culinary Academy Remodel. (was terminated — no appeal needed) ADJOURNMENT The meeting was adjourned at 2:30 p.m. • ' Y i '/ / „,,....,„,„ .ii t..„-e-----.— ' ohanna Doller ide ( �` W illard E. Dunham Acting City Clerk Mayor (City Seal) � Y ii ; l l: „ 4.. 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