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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 City of Seward, Alaska City Council Minutes 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. City of Seward, Alaska City Council Minutes 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 City of Seward, Alaska City Council Minutes 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 * **$ SE W • •• •.� • • �.6�.r�wa +. �® �1 (City Seal) . • � ✓w a�t....'c. •. . ' , � 0 a J .. 1-J 1 • da 1 y T + Z 1, +.° c.