HomeMy WebLinkAbout12142009 City Council Minutes City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 206
CALL TO ORDER
The December 14, 2009 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Mayor Willard Dunham.
OPENING CEREMONY
Police Lieutenant Butch Tiner led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Willard E. Dunham presiding and Linda Amberg
Jean Bardarson Bob Valdatta
Marianna Keil Vanta Shafer
comprising a quorum of the Council; and
Phillip Oates, City Manager
Jean Lewis, City Clerk
Cheryl Brooking, City Attorney
ABSENT — Tom Smith
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING - None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Bardarson/Shafer) Approval of Agenda and Consent Agenda
Motion Passed Unanimous
A City Attorney Report was added to the agenda.
Resolution 2009 -143 was pulled from the consent agenda.
The clerk read the following approved consent agenda items:
Resolution 2009 -141, Adopting To Participate In The 2010 AML /JIA Loss Control Incentive
Program For The City Of Seward.
Resolution 2009 -142, Authorizing A Contract Through December 31, 2010, With Alaska
Newspapers, Inc. For Display Advertising In The Seward Phoenix Log At A Reduced Rate Of
$335.50 Per Week And Establishes Other City Advertising Rates At $11.00 Per Column Inch.
The September 28, 2009, November 9, 2009 And November 23, 2009 Regular City Council
City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 207
Meeting Minutes And The November 24, 2009 Special City Council Meeting Minutes Were
imagl
Approved.
There Was No Objection To The Beverage Dispensary Liquor License Renewal For Thorn's
Showcase Lounge.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards - None
Borough Assembly Report by Sue McClure. Sue McClure told the public she had been
putting her reports in the Phoenix Log newspaper and on the Seward City News site for all to see.
Two ordinances would be up for public hearing in January. KPB Ordinance 2009 -50 asked a liquid
petroleum products business for reports so the borough could get information on their volume of
sales with the idea of modifying gasoline taxes. McClure said KPB Ordinance 2009 -52 would give
the Borough Mayor the authority to appoint members to area boards when there were vacancies. She
stated Cindy Ecklund had replaced her on the Borough Planning Commission and wanted all to
know she too would be driving to the other side of the peninsula often. She notified that Ron Long
was voted onto the Board of Equalization. McClure stated the Flood Plain Task Force were
exploring ways of buying out certain designated properties in Old Mill Subdivision to control
flooding in that area.
The council relayed their opinion they were not enthused on having the Borough Mayor ..r
appoint citizens to local area boards. They wanted these positions filled on the local level.
City Manager's Report. City Manager Phillip Oates notified the City had received a
check from the Exxon Qualified Settlement Fund in the amount of $1,622,052.36. The attorney's
fees for the City's entire share of recoveries was 22.4% or $468,221.33. Overall, the City's total
share of all recoveries from the Exxon Valdez oil spill was $3,448,626.34. This amount would be
added to fund balance bringing the city's undesignated fund balance reserves at approximately 3.45
months, finally within the 3 -6 month window as required by policy. He acknowledged a significant
"Thank You" was owed to Darryl Schaefermeyer and Rick Gifford who worked really hard to
quantify and justify Seward' s claims for damages, which resulted in this recovery .
Oates stated personnel from the State of Alaska, Department of Transportation and
Emergency Management divisions were in Seward December 10, 2009 documenting damage from
the December 1 storm surge event. Initial estimates from PND Engineers for returning the rock
wave barriers, road, seawall, bike path, and beach back to the condition that existed prior to the
storm, range from $7.7 million (if we are able to use much of the existing rock) to $10.6 million (if
new rock was required). Oates announced Seward, Alaska was recently voted the #1 travel
destination in the United States by TripAdvisor. There had been cruise ship cuts for 2011 with
Holland America's Ryndam and Princess's Royal Princess both redeployed to Europe.
Oates stated The University of Alaska Fairbanks had announced it had selected Marinette
Marine Corporation of Marinette, Wisconsin to build the 254 -foot Alaska Region Research Vessel.
When complete, the vessel would be one of the most advanced research vessels in the world and
City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 208
capable of breaking ice up to 2.5 feet thick.
➢ North Forest Acres Levee Road Project.
The City was finalizing the property purchase agreements with the University of Alaska and
a private property owner, and those would come before Council for approval at their meeting
on January 11, 2010. This left one remaining property acquisition to be completed. The City
had completed the utility relocation plan for the project and had entered into an agreement
with the railroad for the installation of culverts necessary to protect the railroad tracks and
property on the East side of the Seward Highway. RFP's should be finalized in January, and
then construction.
➢ The City had received notification of a state grant award of $78,705.94 which were available
through the American Recovery and Reinvestment Act for the purpose of offsetting increased
utility costs.
➢ The short-term lease for Godwin Glacier Tours at SMIC expired on November 28, 2009 and
the company had not yet removed their equipment or vehicles from the site as requested.
➢ The Library Museum Design Team was refining and modifying their 35% schematic design
drawings, while ECl/Hyer Inc. developed exhibit space and verified space requirements for
the facility. Schematic design drawings should be finished for the upcoming legislative
session.
➢ The Long -Term Care Facility contract with UNIT Company would be closed out next week,
but they were still responsible for warranty issues. The final contract amount for
construction of the facility was $22,027,712.82. Please note the final amount was only
$27,712.82 over the original bid price of $22 million.
City Attorney Report. City Attorney Cheryl Brooking stated her brief report went
through November 20, 2009, and had the usual items they assist with on it. More time had been spent
on the special rate contracts and the SAAMS lease negotiation. She said the lawsuit with
Resurrection Bay Conservation Alliance had been remanded back to District court and District Court
acknowledged they now had it. There was no time limit by the court.
Mayoral November Report, Mayor Willard Dunham wanted council to look at the gas
line map portion of his written report. He was disappointed not one person from the majority of the
legislature showed up to the Energy meeting after being invited. He saw a couple of the minority
members there.
Vice - Mayor Bardarson had attended AML's natural gas program and found the talk of a
propane facility established on the north slope that could be ready for market in two years very
interesting.
,,.. PUBLIC HEARINGS
Resolution 2009 -134, Authorizing The City Manager To Enter Into A Special Contract With
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December 14, 2009 Volume 38, Page 209
The Alaska Railroad For Discounted Electric Rates For The Alaska Railroad Coal Facility.
owl
Motion (Bardarson/Keil) Approve Resolution 2009 -134
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Tim McDonald wanted to know if the coal dust problem had been resolved and wasn't sure
a special rate should be given until it had been completely resolved.
Public Hearing Was Closed.
City Manager Phillip Oates stated earlier this year electric rate schedules were revised and
the industrial rate eliminated. He was recommending a special contract rate for three of the
community's biggest utility users. All heads of these organizations had agreed and discussed the
fiscal impact on their businesses. This special rate for the ARR was just for their coal facility only.
All three users agreed to share the burden to pay for infrastructure. These three companies all had
unique power requirements, with year -round employment offered, seasonal demand in excess of 750
kilowatts and one offered railroad service throughout the winter months. He explained the
comparison of rates and recommended approval.
Motion Passed Unanimous
Resolution 2009 -135, Authorizing The City Manager To Enter Into A Special Contract With
Icicle Seafoods, Inc. For Discounted Electric Rates For Seward Fisheries.
Motion (Bardarson/Keil) Approve Resolution 2009 -135
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.
Oates stated the issue had been framed in the prior resolution. For Icicle Seafoods, Inc., they
were a large employer with seasonal demand in excess of 750 kilowatts that provided year round
employment to the community. He explained the comparison of rates and recommended approval.
Motion Passed Unanimous
Resolution 2009 -136 Authorizing The City Manager To Enter Into A Special Contract With
The Seward Association For The Advancement Of Marine Science (SAAMS) For Adjusted
Electric Rates.
Motion (Keil/Shafer) Approve Resolution 2009 -136
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.
Oates explained the comparison of rates and uniqueness of this facility situation.
City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 210
Motion Passed Unanimous
Resolution 2009 -137, Authorizing The City Manager To Enter Into A "Second Amended And
Restated Agreement For Lease Of Tract 2A, Waterfront Tracts, And The Lease Operation
And Maintenance Of The Alaska Sealife Center" With The Seward Association For The
Advancement Of Marine Science.
Motion (Bardarson/Shafer) Approve Resolution 2009 -137
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Darryl Schaefermeyer from the Alaska Sealife Center thanked the city attorney and city
manager for their cooperation with this agreement the last few months. Schaefermeyer stated his
view of the agreement, operation, cooperative agency involvement and requirements. The main three
objectives renegotiated were:
• The tidelands lease with an annual $9,000 lease payment would be terminated.
• Would make permanent the termination fund annual draw down allowance that was
approved by the amendment of January 2009.
• Operations and maintenance and language clean up, bank financial and budget reporting, etc.
,.. Schaefermeyer had specific comments to the City Manager's memo that was in the packet. This
agreement did not reduce the termination fund requirement, but it continued what was amended
in January of 2009 which granted SAAMS the option up to $500,000 until September 29, 2009
and be totally replenished by September 30 of each year. He said it did not end the annual
maintenance plan. This agreement did not shift the operations and maintenance to the city for a
one year required by the cooperative agreement following the decision to no longer operate the
Sealife center. He spoke of research activity, hours open, and a well- maintained center.
Schaefermeyer said during the one year period, the center would not be abandoned by SAAMS,
but would continue to be operated and well maintained. If ADF &G were to receive the center
back, it would receive a well maintained facility. As of September 30, 2009, the renewal and
replacement fund had a balance of $211,002.13. He reminded this facility had 93 year round
employees with an annual payroll of $4.7 million.
Public Hearing Was Closed.
Oates said he purposely tried not to influence the staff or attorney on this contentious issue.
He acknowledged that the City was clearly taking on more risk by losing the tidelands lease and
making permanent the ability to draw down the termination fund. Oates stated the Center was in a
transition period and must find other sources of research funding to keep the Center open. He felt
this was a risk worth taking. He also thought it was a larger risk to not assist those that were best
equipped to run the facility to get the Center through this transition.
Mayor Willard Dunham disclosed a possible conflict of interest because of his presence on the
SAAMS Board. He received no financial interest or gain.
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December 14, 2009 Volume 38, Page 211
Vice Mayor Bardarson and Council unanimously declared a conflict did not exist.
Council unanimously requested frequent financials, budgets and reports if the City were to
take on this added liability.
In response to Bardarson, City Attorney Cheryl Brooking clarified that in 2006 the amount
of the termination fund was reduced to S700,000 which SAAMS thought was sufficient to maintain
and operate the facility in a "mothballed" state. The obligation for the one year period referenced
still existed to fully operate the facility as a standard of well maintained and operated marine
research facilities throughout the United States, which was wording out of the cooperative
agreement.
SAAMS was now asking that their obligation be limited to their termination fund requirement of
$500,000, which was to be fully funded only on September 30 of each year.
Oates expressed that the Alaska Sealife Center had an annual plan to visit their financial
status. The City would be notified once they felt they could only operate the facility for one more
year. Oates acknowledged SAAMS was obligated to let the City know a year in advance which
would be the same time the City would have to make its determination. If they could not operate for
one more year, frankly the City was responsible. The City could look at the state at that point.
Rules were suspended by unanimous consent to allow Darryl Schaefermeyer to speak.
Schaefermeyer stated the provision tonight had not changed and was the same as adopted in
the agreement of November of 2006. He mentioned there was a two year requirement following a
financial consultant evaluation of the facility. If after that period, SAAMS could no longer operate
the facility, then notice would be given to the City. In his opinion, ADFG and EVOS would
probably abandon their responsibility. He noted there were always opportunities to partner with
other institutes around the world.
Motion Passed Unanimous
Resolution 2009 -138, Authorizing The City Manager To Enter Into A Lease Agreement With
The Seward Association For The Advancement Of Marine Science (SAAMS) For The Tenancy
Of The West And Central Office Spaces, Including Common Areas And Restrooms Of The
Railroad Depot Annex Building Located At 501 Railway Avenue.
Motion (Keil/Amberg) Approve Resolution 2009 -138
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.
Oates stated this was an effort to save money and impacted two current leases in the Petro
Plaza building and the Investment building. It would save the city $30,000 on lease space per year.
Oates hoped to have other options come available for the electric and community development
departments. Community Development would move into the upstairs conference room while the
electric department would be in the Railroad Depot Annex building.
City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 212
Amendment (Bardarson/Keil) Change Section 3 to say "effective 30 days
after its adoption and posting" instead
of "immediately ".
Amendment Passed Unanimous
Main Motion Passed Unanimous
Resolution 2009 -139, Authorizing Participation In The 2010 Community Development Block
Grant Program For A Total Of $252,925 For An ADA Accessible Boardwalk Along The
Southern Edge Of The Small Boat Harbor Connecting The New South Float System
(Q,M,N,O,P) With S Float And The South Launch Ramp Areas, While Creating ADA
Accessibility Throughout The Harbor.
Motion (Bardarson/Shafer) Approve Resolution 2009 -139
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.
Oates stated this was a resubmission of a grant submitted last year. It came before council
because it needed verification of the public process and that public officials supported the project.
He reminded this project connected the boardwalk within the harbor and provided ADA
ibior accessibility. He recommended council support this requirement in the application process.
Motion Passed Unanimous
Council recessed 8:45 p.m.
Council resumed 8:55 p.m.
UNFINISHED BUSINESS
Item for Reconsideration
Resolution 200 -108, Adopting The Parking Enterprise Fund Budget For Calendar Year 2010
and 2011.
Motion (Keil/Shafer) Withdraw the Motion for Reconsideration of
Resolution 2009 -108 as was passed on
November 24, 2009.
Motion for Reconsideration Withdrawn Unanimous
NEW BUSINESS
Resolution 2009 -143, Approving The Revised City Employee Drug And Alcohol Policies.
Motion (Bardarson/Amberg) Approve Resolution 2009 -143
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December 14, 2009 Volume 38, Page 213
Oates clarified what the city could test for and when. This was a stronger policy than in the emi
past and he believed this set the correct tone and would uphold employees to a higher standard. The
new policy allowed better tools for discipline purposes also.
Amendment (Bardarson/Keil) On the policy itself on packet page 261,`Wd
6.21" and remove "and 6.3"
Amendment Passed Unanimous
Brooking stated there were two policies: a CDL policy and one for everyone else. Provisions
by the Alaska Constitution for search and seizure were protected. There was a demonstrated history
and legal framework on how drug policies were developed and how they were treated. Those events
were laid out in a policy. Even though it didn't have to, this policy was brought in the form of a
resolution before the council because of the dollars associated with it.
Main Motion Passed as Amended Unanimous
INFORMATIONAL ITEMS AND REPORTS (No action required)
COUNCIL COMMENTS
Amberg wished everyone a Merry Christmas and a healthy and prosperous new year.
Keil thanked staff for the downtown Christmas tree and thanked Ron Long for continuing his
public service by staying on at the borough level. She wished everyone happy holidays.
Bardarson also thanked everyone for putting up the downtown Christmas tree. She had
heard from Pat Williams how the history of the tree was started downtown in 1920, and had moved
to the Elks, to the middle of the street at the end of 4 Avenue, moved to Thorns lot, then Kawabe
Park for a year. Bardarson stated it made for a more welcoming downtown. She thanked everyone
for all the hard work they had done and wished everyone happy holidays.
Shafer thanked the Mayor and city clerk for hosting the 2 graders on their community tour.
The classes toured downtown businesses and the kids were thrilled in meeting the Mayor. Shafer
liked the new binders for the packets and wished everyone a Merry Christmas and Happy New Year.
Valdatta questioned whether insurance was in place if the floats were damaged before
finalization or delivery of the contract like they were last time. He told a story remembered
throughout town about the tree lights being carried up the street attached to a car of one of the
community's more "colorful" members. Valdatta liked the new packet binders also.
Dunham thanked the teachers and the school system for allowing the children to attend city
hall. He said the children were not afraid to talk and ask questions and thought it was a good idea to
orient the children to what their town had to offer. He notified of his participation at the KPB
City of Seward, Alaska City Council Minutes
December 14, 2009 Volume 38, Page 214
economic outlook and the carbon tax issue with Chugach. He wished everyone happy holidays and a
prosperous new year.
Oates thanked the Mayor for the great job he was doing. He stated the Mayor had been
hosting lunches, working his way through the community, traveling, and working hard for the town.
Oates informed it was a pleasure to work with the council.
CITIZENS' COMMENTS
Tim McDonald notified everyone he had just appointed himself as Seward's Omsbudsman
and wanted anyone in the community with concerns to contact him so he could bring them to the
council's attention. He wanted a lot more public participation in the meetings and noted the job loss
trend for the area. He felt fishing had been mismanaged and spoke of the 20 seine boats that were
here fishing in the 80's as opposed to two boats now. He spoke on salmon runs in the area and the
lack of commercial openings. McDonald thought too many fish were reaching the creeks and thus
choking and poisoning the fingerlings with decomposition. He thought better management was
needed for Resurrection Bay because it was an important and traditional lifestyle. McDonald
thought the council owed it to the commercial fishing community to help. Merry Christmas.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
Keil also wanted and hoped the public would call the city council themselves, or speak to the
city manager if they had any issues. She found the City Manager very responsive and thought the
council was also. She urged the public to call any or all of them.
Valdatta informed some fisheries like pollock were controlled by Kodiak and not in the
council's control.
ADJOURNMENT
The meeting was adjourned at 9:32 p.m.
Jean Lewis CMC ; `Willard E. Dunham
Cite Clerk = 0 , 0 �aa.. Mayor
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