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City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 231
CALL TO ORDER
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The February 8, 2010 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.
ROLL CALL
There were present:
Willard E. Dunham presiding and
Jean Bardarson Bob Valdatta
Tom Smith Marianna Keil
Vanta Shafer
comprising a quorum of the Council; and
Phillip Oates, City Manager
Jean Lewis, City Clerk
Cheryl Brooking, City Attorney
�.. ABSENT — Linda Amberg
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Betty Skinner hoped the council had read the packet she gave at the last council meeting
from a study off of the internet. She asked why fluoride became an issue since oral hygiene was not
on the original wellness program and why it was even put on the ballot at the last election. Skinner
urged council to slow down the process and have drinkable water for everybody. She stated cost was
an issue along with the economic crisis around the country. It had not been established that fluoride
was needed in the water and questioned how much was safe to ingest. She thought topical was a
better way to go and people could go to their physician or dentist for fluoride. Skinner worried about
the health issues for elders and how this would affect everyone. She wanted a true and factual study
on the feasibility to ensure it wouldn't be a burden on taxpayers if implemented.
Jim Herbert reported that the community hosted the National Ocean Science Bowl over the
past weekend with over 200 students, parents and coaches participating with 23 Alaska teams in this
academic competition. He acknowledged and thanked the University, the Alaska Sealife Center,
Icicle Seafoods, National Park Service and the Seward coaches and volunteers. He said this took a
lot of community involvement. Herbert also mentioned there was free tax preparation at the Senior
Center. He said last year, over 300 tax preparations had resulted in over $300,000 of refunds for the
area.
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 232
Tom Tougas, addressed increasing the rent on harbor lease sites. He said there were 32 sites
leased, with his price from $78.35 per square foot, proposing to $97.00 sq ft. He stated the city had earl
not spent a penny on those lots that people had invested in. He wanted to know why the city would
increase the rates by 25% when all businesses in Seward were struggling to survive. Tougas thought
the city was sending a message to boat harbor businesses that it didn't care if they survived. His rent
was about $8,000 a year and he remarked that the city would lose sales tax revenue once businesses
closed. He requested this topic be put on for a public hearing.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda
The minutes were pulled from the consent agenda.
Motion Passed Unanimous
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
A Proclamation Was Read Designating February 20 And 21, 2010, Juriro Wada And
Alfred Lowell For Blazing And Marking The Seward To Iditarod Trail And Presented To
ougil Seavey, President Of The Seward Trailblazers.
Borough Assembly Report. Assembly Person Sue McClure stated the city was set to
receive the borough cruise ship head tax monies soon. The issue on service area vacancies being
appointed by the Mayor and approved by the Assembly instead of appointments by the board itself
was up for the final vote, although she felt it could be withdrawn. Another topic of interest was the
Ordinance 2010 -001, which conveyed ten acres of borough land to the City of Soldotna for the
cemetery. The remaining issue was price, and the City of Soldotna would build and maintain it, but
the whole borough could use it. Another ordinance which would prohibit a person from serving on
the borough assembly and a city council at the same time was being introduced. McClure had
enjoyed being a science judge in the National Ocean Science Bowl over the weekend.
City Manager's Report. City Manager Phillip Oates had just come back from a legislative
visit to Juneau and Washington D.C. and thought it had been a good strategy going early to get more
time with all representatives and senators. A coalition of legislators from other communities was
brought together on a library funding bill and the municipal harbor grant program. Oates stated the
city had four cruise ship head tax projects once money was appropriated. They were: a security
dock, relocating the Coast Guard building, establishing a pedestrian corridor on Port Avenue and a
water storage tank. Oates encouraged the state legislature for approval of a state GO bond for
completing the SMIC basin and $2 million dollars to combat erosion on Lowell Point Road. They
had also partnered with the Alaska Sealife Center for their intake project, the Shellfish Hatchery and
AVTEC, and spoke about future a Spring Creek Correctional Center expansion. Oates, Mayor
Dunham and Vice -Mayor Bardarson then travelled to Washington D.C. to establish networks and
talk about projects such as; Lowell Creek tunnel, waterfront improvements, roads, hospital health
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 233
clinic expansion, language and usage changes for the Park Service's private and public conferences
in their new building, east harbor dredging, harbor expansion cost share forgiveness, and the
shellfish hatchery. Oates stated it was a privilege to support and lobby for these vital community
projects on behalf of the City.
Oates stated there were no purchases between $10,000 - $50,000, nor RFP's. He stated the
Alaska Municipal League Joint Insurance Association (AMLJIA) would be holding their July 2010
Board meeting in Seward. A faulty pressure gauge leaking lubricating oil was discovered at the Fort
Raymond Generation facility. Most of the oil was contained within the secondary containment and
the site was being monitored by the electric department and cleaned up using disposal techniques
outlined in the Spill Prevention, Control and Countermeasures (SPCC) plan.
Oates reported the harbor was in the process of slip transfers and new assignments based on
the involuntary relinquishment list. Of 40 slip holders, 18 either paid or gave up their slips. A new
anti -freeze collection site would be installed at R -float this spring, along with used oil containment
tanks at D, F, J and R- floats, which had been in place since 1992 and was in dire need of
replacement. S -float would have fire extinguishers added before the boating season began, bringing
the whole float system up to city code. Oates also reported pump problems were addressed and
solved within the water and wastewater system. Several technological upgrades were initiated,
setbacks obtaining site control for the new water storage tank were being evaluated, and staff was
preparing for a second round of ARRA funding if it were to come available.
4 ➢ Community Development. Incorporation of zoning for small wind turbines would be
addressed at the next Planning & Zoning Commission work session. ECl/Hyer and Rise
Alaska would return to Seward for the final Library/Museum 35% Schematic Design
Presentation on February 11, 2010. The PEC, Building Committee and Library Museum
Committee would also meet to review the proposed plans. Community Development
Director Christy Terry attended a two day training in Anchorage titled "Entrepreneurial and
Small Business Development Strategies" by the International Economic Development
Council through the University of Alaska Center for Economic Development. This was a
fantastic opportunity to develop additional tools to help sustain the community' s economic
viability and while partnering with the Chamber of Commerce in augmenting services for
new and established businesses within the community.
➢ Finance Department. More than 500 customers took advantage of the first full month of
electronic bill paying for their monthly utility bill, representing more than 20% of all utility
customers. The department also received its 16 consecutive Certificate of Achievement for
Excellence in Financial Reporting from the Government Finance Officer's Association of the
United States and Canada, for its comprehensive annual financial report for the year ended
December 31, 2008.
In response to questions, he stated the Lowell Creek tunnel was in good shape for the next
10 -15 years. Catastrophic failure was always a possibility in case of natural disaster.
City Attorney's Report. Cheryl Brooking reported on their usual monthly duties along
with accessing rock quarry materials, vessel impoundments, levee road acquisitions and quiet title
action at the Two Lakes Park area. Work had begun on documents to be filed in the Resurrection
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 234
Bay Conservation Alliance (RBCA) litigation that was remanded back to the Federal District Court.
The briefing was due Monday, with oppositions and replies happening thereafter. Brooking stated at
the Southwest Alaska Municipal Conference, recently held in Anchorage, the three issues were:
broadband access, fisheries and energy. She spoke about the recent Supreme Court decision in
Citizens United vs. Federal Election Commission which overruled a prior case on election finance
law dealing with corporate financing, time limits, advertising funding, governmental interests,
influencing elections, etc., and the conclusions the Court came up with. She said the Court upheld
the disclosure requirements because government did have a valid interest in providing the electorate
about the spending sources. Brooking said this was a fascinating read, quoting the federalist papers,
history, free speech and the election process and how campaign's work and how far you restrict that
in a democratic government. She noted the state legislature was addressing what this decision meant
to the State of Alaska.
Mayoral Report. Mayor Willard Dunham stated the legislative trip to Juneau was the
busiest he had been to. They saw 22 legislators in two days. They met with legislators of each
district on the bill of interest for seven harbors. Other topics and discussions were the library,
hospital, DOT, coastal plans and the AVTEC expansion. Dunham spent one hour in the Governor's
office and met with the Attorney General about lawsuit assistance for the Alaska Railroad, and
Aurora Energy Services litigation. He went onto Washington D.C. and also spoke of the ARR
lawsuit. His meeting with the Office of the Federal Coordinator of the Natural Gas Project went
well, with the possibility of Seward being a primary port when a pipeline was built. Dunham said
the City needed to plan now for storage areas and to handle heavy equipment.
Vice -Mayor Jean Bardarson reported on the trip to Marionette, Wisconsin and how they
toured the shipyard that was building the arctic research vessel Sikuliaq. This ship was being built
with ARRA funding and would create jobs in Wisconsin. She thought the infrastructure was
fascinating and explained how they would build modules and combine them at the end. The building
of this ship would begin in four months, after the design work was complete and would house
researchers, educators and scientists from all over the world. She thanked the Chancellor for
partnering with the city and picking Seward for the homeport of this vessel, and she also thanked
Dan Oliver for having "Seward" printed on all ship illustrations.
Other Reports, Announcements and Presentations
A report was given by Bryan Zak, SW Regional Director of Alaska Small Business
Development Service for small business services.
Council Suspended The Rules To Allow Ron Wille To Speak Since He Missed Citizen's
Comments.
Ron Wille, Operations Manager at Kenai Fjords Tours, stated the 2% increase in lease rates
was actually a 25% increase. He provided a handout and explained the lease rate on one parcel had
increased 147% in 2005. In total this represented a $5000 increase for their two properties in the
harbor. Wille explained that 2009 was a difficult year for all businesses. Many businesses had to cut
costs to stay profitable and asked the council to cut governmental costs instead of always increasing
costs. He thanked them for their consideration.
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 235
L. PUBLIC HEARINGS - None
NEW BUSINESS
Resolution 2010 -011, Amending The City Parking Fees Schedule For City -Owned Parking
Lots, Temporarily Decreasing Daily Parking Fees. Effective May 1, 2010 Through December
31, 2010.
Motion (Bardarson /Shafer) Approve Resolution 2010 -011
Oates reminded parking fees had been reduced from $10 to $5 because of the economic times
which ended at the beginning of 2010. This extended those reduced fees for another year and would
convert back to $10 a day when it would sunset at the end of the year 2010. He explained the impact
on all harbor lots.
Valdatta thought $10 was still a good rate.
Keil reminded that council had voted it to be $5 for the budget.
Motion Passed (4 -2) Yes: Smith, Shafer, Keil, Bardarson
No: Valdatta, Dunham
OTHER NEW BUSINESS
The January 11, 2010 Regular City Council Meeting Minutes Were Approved by unanimous
consent.
The January 25, 2010 Regular City Council Meeting Minutes.
Motion (Smith /Bardarson) Remove The Words, "Stated Even Though It
Was Not Required, They" From Page 18.
The January 25, 2010 Regular City Council Meeting Minutes Were Amended And Approved
By Unanimous Consent.
Discussion and guidance on setting the percentage of land value for annual city lease rental
charges.
City Attorney Cheryl Brooking stated the instructions to the appraiser were to come up with
the fair market value on a fee simple basis, or in another section, to do a lease rate analysis and come
up with a fair market rent value. If council chose to not raise lease rates now, those rate percentages
would be determined by the appraiser. The only question was to establish the rate percentage ahead
of time and simplify the appraiser's work, or have the appraiser set the fair market value for these
existing leases. Brooking reminded that rates were established every five years during an appraisal.
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 236
Community Development Director Christy Terry reminded that RFP criteria had come
emi to the council for approval, and a clause was taken out of the RFP that talked about settin g the
percentage. She would issue an addendum tomorrow telling proposers that setting the percentage
was part of the RFP. She clarified that in the individual leases, the leaseholder had a procedure
to object to the fair market value set by the appraiser.
Council Agreed To Have The Land Appraisal. The Rates Would Be Established By The
Land Appraisal And The Appeal Process.
It Was Agreed By Unanimous Consent To Add A Sentence About "Home -Rule" And Approve
The Draft Letter In Opposition To KPB Ordinance 2009 -052 Which Would Allow Service
Area Board Members Vacancies Be Appointed By The Mayor And Confirmed By The
Assembly Instead Of Appointed By A Majority Of The Remaining Board.
INFORMATIONAL ITEMS AND REPORTS (No action required)
Letter to Senator Gary Stevens re: FY2011 funding for municipal harbor facility grant program.
COUNCIL COMMENTS
Shafer hoped the other legislators would lobby on Seward's behalf on the harbor funding like
Seward had done for them. She was very happy the arctic research vessel was being built and
notified everyone that a Christmas movie was due to be made in Seward.
Smith was now totally confused about the appraisal process.
Valdatta was asking people to move their vehicles for snow removal along the roadways.
He thought there should be an ordinance to ticket people who did not move their vehicles.
Keil was glad the Mayor, City Manager and Vice -Mayor got the opportunity to travel to
Juneau, Washington D.C. and Wisconsin, and was pleased Seward was represented at the shipyard.
Bardarson thanked the community for sending them to lobby for city projects. She stated it
was an educational trip for her and the ship was great. She believed it would bring more business to
Seward. Bardarson also thanked the volunteers of the National Ocean Science Bowl, the member
who was helping with taxes at the senior center, and congratulated the finance department on their
achievement award.
Dunham indicated that participants of the National Ocean Science Bowl got tuition credit on
future scholarships. He thought it was an indication of things to come with the ship and education
opportunities and thought the value to Seward was amazing. He thanked Crowley Marine for being
in the harbor and bringing their vessels in to do maintenance work during the winter. He hoped the
Alaska Film Industry could give a presentation sometime. Dunham noted the passing of an
institution, D.E. Wood. He was a great community member, poet, critic, and it was definitely an
end of an era with his passing.
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 237
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CITIZENS' COMMENTS
Tom Tougas said other communities were working together to help their businesses during
difficult times. He thought Seward was shifting from sales tax economy to a fixed cost economy and
stated it was a cooperative process to build sales tax and improve the community. Tougas stated
Seward was turning into the most expensive city to do business in. He was downsizing as fast as he
could and paid moorage and head tax on top of the 8% lease rate. He felt the council needed to talk
to the harbor businesses before these institutional facilities were gone. With a declining population,
he did not want to see the private sector destroyed.
Betty Skinner mentioned the Episcopal Church fed the children meals that were involved
with the National Ocean Science Bowl. She noted they were always very polite and always a joy.
She also re- stated she would share information on water fluoridation if anyone was interested.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS — None
Council recessed at 9:25 p.m.
Council resumed at 9:30 p.m.
EXECUTIVE SESSION
Motion (Bardarson /Shafer) Go into executive session to discuss possible
pending litigation commitments in regards
to Alaska Community Action on Toxics and
Alaska Chapter of the Sierra Club vs.
Alaska Railroad Corporation and Aurora
Energy Services, LLC.
Motion Passed Unanimous
Council went into executive session at 9:32 p.m.
Council came out of executive session at 9:57 p.m.
Motion (Keil/Shafer) Go into executive session to conduct the
City Clerk Evaluation.
Motion Passed Unanimous
Council went into executive session at 9:58 p.m.
Council came out of executive session at 10:20 p.m.
ADJOURNMENT
The meeting was adjourned at 10:22 p.m.
City of Seward, Alaska City Council Minutes
February 8, 2010 Volume 38, Page 238
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