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
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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. --
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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
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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.
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