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HomeMy WebLinkAbout06132011 City Council Minutes City of Seward, Alaska City Council Minutes June 13, 2011 volume 38, Page 594 } CALL TO ORDER ri. The June 13, 2011 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 Clemons led the pledge of allegiance to the flag. Mayor Dunham called for a moment of silence for Bill Noll, former Mayor of Seward. Noll passed away earlier today. ROLL CALL There were present: Willard E. Dunham, presiding; and Marianna Keil Jean Bardarson Vanta Shafer Bob Valdatta Ristine Casagranda Tom Smith comprising a quorum of the Council; and lbw Phillip Oates, City Manager Cheryl Brooking, City Attorney Johanna Kinney, City Clerk Absent — None CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Mary Hart spoke on behalf of GCI and said that the recent Fiber Optic proposal was in alignment with the national standards set for the State of Alaska, and that Dryden and Larue's recommendations mirrored those same standards. She suggested the additional safety requirements were added by the City of Seward. She said if GCI did not receive the permits required from the City of Seward by the end of June, GCI would have to rededicate their construction resources elsewhere. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda Councilmember Valdatta removed Resolution 2011 -043 from the consent agenda. Councilmember Keil added a discussion item under Other New Business for the GCI Fiber Optic Cable Project. City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 59.5 Motion Passed Unanimous The clerk read the following approved consent agenda items: The May 23, 2011 City Council Regular Meeting Minutes Were Approved and The May 23, 2011 City Council Special Meeting Minutes Were Approved. Council appointed Ryan Reynolds and John French to the Historic Preservation Commission with terms expiring 2014. Council appointed Tim McDonald to the City of Seward seat on the Cook Inlet Aquaculture Association Board of Directors. Council scheduled a joint work session with Planning and Zoning Commission to meet with the Alaska Railroad regarding a land exchange for Monday, July 25, 2011 at 5:30 p.m. Resolution 2011 -042, Adopting The Port And Commerce Advisory Board (PACAB) Priorities From May 2011 To April 2012. Resolution 2011 -044, Authorizing The City Manager To Sign An Extension Of A Special Services Contract Between The City Of Seward And The Department Of Public Safety Providing Dispatch And Clerical Services To Public Safety Employees In The Seward Area For Forty Eight Thousand And Five Hundred Dollars (48,500.00). yogi Resolution 2011 -045, Authorizing The Discharge Of Fireworks By The Chamber Of Commerce During The 2011 Independence Day Celebration. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A welcome proclamation was read for The Alaska Academy of Family Physicians. A proclamation was read honoring Katy Turnbull as a recipient of the BP's Teachers of Excellence award and named the Seward's 2011 Teacher of the Year. Borough Assembly Report. Assembly Representative Sue McClure stated they had two big meetings in the last month. The May 17, 2011 meeting passed an Ordinance raising the Borough Mayor's salary to $99,000 by a 5 -3 vote. At last Tuesday's meeting the budget passed, including the non- departmental items such as the Kenai Peninsula Tourism and Marketing Council and the Small Business development Center got funded. There was an attempt to get more money to the school district, but it failed by a 7 -2 vote, with McClure voting on the failing side. Administration requested borough landfills and transfer stations be closed on Sundays during the winter months (October 1 — April 30) to save $128,000 per year. It was going to be a trial run this year. The mil rate for property tax was set as the same — 4.50 mils. The road construction project out in Camelot was done by Metco. The next meeting was June 21, 2011 and then July 5, 2011. Coming up for public hearing City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 596 was an ordinance to increase borough's sales tax from 3.0 to 3.1. If the ordinance passed, it would go on the October 2011 ballot. Another possible ballot item was an increase in term limits for Assembly Members from 2 terms to 3 terms. There would be a Reapportionment Committee meeting on Wednesday, June 15, 2011 at 7:00 p.m. at the K.M. Rae Building. In response to Valdatta, McClure stated she did not have any information on the status of Seward's redistricting issue. McClure added that she had done some additional research since the last Council meeting and had received some information in response to Mayor Dunham's previous inquiry regarding state funding for AVTEC students. McClure noted that the University of Alaska received funds through a mandate, and that she had met with Dr. Atwater, Superintendent of Schools, and they discussed possible alternatives for obtaining scholarships for AVTEC students. City Manager's Report, City Manager Phillip Oates stated that effective September 30, 2011 he would be resigning as City Manager; he read his resignation letter to the Council and public. He thanked Sue McClure for her assistance with getting the Small Business Development Center position funded and he was ready to move forward with seeking a small business advisor in Seward; he stated that there were already individuals who expressed interest in the position. On June 10, 2011 the Fire Department dispatched to the railroad dock to assist a person who had fallen and injured; the patient was taken to the hospital for care. Regarding the camera surveillance issue, Oates said he was willing to provide the locations of all cameras to Councilmembers, with the consent of the Mayor, if they wanted to see them. The Finance Department was preparing the comprehensive annual financial report and would distribute it to Council by June 20, 2011 in preparation for the Audit work session scheduled for June 27, 2011. The North Forest Acres Levee road project was nearing completion; the project was on time and on budget. The City received a request from the Providence Hospital for a cash infusion to the health care system as a result of the reduction in reimbursement from Medicaid, as well as implementation costs associated with their new electronic medical records system; the City had earmarked $500,000 in the 2011 budget, but that fell $250,000 short of the hospital's request and the City would have to make up the difference from General Funds. Community Development received appraisal information on the city parcels identified for possible sale by the Ad Hoc Land Committee; the information would be provided to Council so they could provide direction to the Committee. The Lowell Creek Bridge Repair Project had been completed on schedule. The removal of the underground storage tank at the new Library Museum site was completed. Dunham asked if the Department of Natural Resources would possibly funnel some funding into improving the Lowell Point Road; Oates added that the Commissioner of the Department of Transportation suggested that he and Mayor Dunham approach the Federal Parks System. Dunham stated he and Oates met with the State Parks System today who said they would support the City's initiative to improve the access to the State Park. Administration's plan was to work toward making this a legislative priority for 2012 with the hope that it would be appropriated to the Parks Department and they would give the money to the City and Borough to make the necessary road repairs. City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 597 City Attorney's Report, Cheryl Brooking stated the city's firm continued to work on maj various leases for the City, she had responded to department head legal questions, and she had devoted time to the City's pending litigation issues. Regarding the litigation involving the Resurrection Bay Conservation Alliance (RBCA), Brooking stated she had requested rehearing. Regarding the Gillespie Tract B litigation, the City had possession of the property and was continuing with the project, although the issue of valuation was still to be decided by a special master. A hearing date had not been set; both parties were engaging in discovery. Mayoral Report, Mayor Willard E. Dunham stated he did not have a written report to provide. He apologized to the people from Lowell Point and their Community Union for not being able to attend the community and business meeting last week and he appreciated being invited to it. Mayor Dunham had the opportunity to meet the British Ambassador last week in Anchorage; Dunham suggested the Ambassador visit Seward soon. Both he and Vice Mayor Bardarson had been invited to attend a reception and dinner for foreign ambassadors in Anchorage on June 21, 2011 by the U.S. Protocol Office; the foreign visitors would also be in Seward for a Kenai Fjords charter on June 24, 2011. Lastly, he had a request from the U.S. Mayor's Climate Protection Agreement asking if we would be interested in participating in a program they were sponsoring; Councilmember Shafer noted she had participated in this program in the past and it had been focused on the impact of climate change; she attended encouraged Mayor Dunham to participate. Other Reports, Announcements and Presentations A report was given by Ron Long, President, Chamber of Commerce. Chamber President .,, Long stated they were on the hunt for an Executive Director once again, since they decided not to renew the contract for Chuck Bowman, the recent past director's, probationary period; the Chamber had brought on staff to help get through the heavy summer season. The Chamber completed their comprehensive financial audit and were found to be in full compliance with minor clean -up details. The Chamber had informational booths at many sports and recreation shows in the past several months, including Fairbanks and Anchorage. They had met every cruise ship upon their arrival; they were preparing to meet the upcoming Navy ship; they were working with AVTEC to promote new maritime courses, specifically those focused on ocean ranger programs. The Chamber provided support to British film crews in town that were filming extreme fish fights, had a new booth designed for the fish expos and other travelling shows, expanded their radio and television coverage for the Silver Salmon Derby, and were working on the smolt program to find the best revitalization for fish. They were implementing a consistent print advertising campaign in the print media with national and foreign media. Finally, the halibut derby was well underway, ticket sales were up and fish were cooperating; and Long said the Chamber hoped to beat last year's revenue. Councilmember Shafer hoped the smolt included king salmon in addition to silvers. Mayor Dunham said the Bob and Mark Show from an Anchorage radio station said they would like to push the halibut tournament on Anchorage radio if someone would contact them from the Chamber. PUBLIC HEARINGS Resolution 2011 -041, Authorizing The City Manager To Enter Into A Lease Agreement With The United States Of America For Lot 4 -A2, Block 2, Marina Subdivision, Seward Small Boat City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 598 Harbor For The Purpose Of Relocating The United States Coast Guard (USCG) Shore Support Building. Motion (Bardarson /Shafer) Approve Resolution 2011 -041 Oates gave a brief synopsis of the resolution and recommended approval. The railroad was going to end their lease to the coast guard, which would eliminate the coast guard in Seward and thus create a need to find a new location for the coast guard in Seward; approving this lease would result in securing a coast guard presence in Seward. 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. In response to Councilmember Casagranda, Mayor Dunham replied that all the land in the harbor was owned by the city except an 800 -foot portion owned by the Alaska Railroad. Councilmember Smith said the Alaska Railroad had been eyeballing the Coast Guard to leave for years, but had no real plan. Oates stated the upcoming work session on July 25, 2011 should address this topic. Vice Mayor Bardarson noted a correction that should be made in the lease to state that payments should be made on a quarterly basis, not monthly. Motion (Bardarson /Keil) Amend Resolution 2011 -041, changing the lease language on Exhibit B to read how "quarterly" payments instead of "monthly" payments. Motion Passed Unanimous Consent Main Motion Passed Unanimous UNFINISHED BUSINESS Resolution 2011 -036, Amending The Surveillance Camera Policy. Motion (Bardarson /Keil) Approve Resolution 2011 -036 (from the May 9, 2011 meeting) Oates gave a brief history of the surveillance camera policy. Councilmember Shafer's intent was to require the policy to have council approval of all locations, require no cameras be placed on Fourth Avenue, south of the boat harbor, and to have the camera at the Fire Department placed inside the building. Oates stated this change would potentially challenge the cost of the grant and he read the Finance Director's fiscal review. All cameras were currently up and running. Some members of council had a chance to see the placement locations of the cameras. Oates' stated administration did not support this resolution. City Attorney Brooking stated that she had been asked to not alter any of the proposed language changes of the resolution, and instead gave a lengthy attorney review in the agenda City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 599 statement. One risk she noted was the likelihood the state could demand the repayment of the $350,000 grant. A second risk she saw was in breaking the confidentiality of the State's Vulnerability Assessment Report. There was a specific act that required this information to remain confidential and those laws were the basis of the city receiving this grant. The city could be in violation of the privacy of this information and penalties could involve fines and imprisonment for revealing information. She stated that it was difficult to quantify the exact level of risk. Oates added that the list of cameras was not a public document, but he was willing to share that information with council at a recess during this meeting at any time. Brooking further added the city had installed the cameras and were bound by state and federal privacy requirements and these cameras were not currently located in any areas where they were not legally allowed to be, nor were they violating anyone's privacy rights. Councilmember Valdatta said he would follow the recommendation of the City Manager; he was concerned that the city could face potential lawsuits. Shafer said some of the places where cameras were located were very clearly noticeable already; she noted the attorney said they "may" be liable to pay back the money for the grant. Shafer stated she was bothered by the work session that reassured the public where the cameras were not going to be. She felt she owed it to the public to look into this and this was, in her opinion, the epitome of wasteful government spending. Police Chief Tom Clemons said they could not use the cameras for anything but what the ..r grant was for, and Homeland Security clearly stated to him that he could not make public the Vulnerability Assessment Report. Councilmember Casagranda asked if the city could add to the system. Clemons said he only had one additional camera, and it would either have to be placed on critical infrastructure or have council approval. Keil asked about the signs posted to notify the public of each camera's location. Chief Clemons said as soon as the signs went up when the cameras were working, Keil thought that divulged the location. Recessed at 8:25 p.m. to view camera locations in City Manager's office. City Clerk Johanna Kinney reminded council their discussions were to be held in the public, and to not discuss anything until the meeting resumed. Meeting resumed at 8:35 p.m. Councilmember Casagranda recalled what Keil had said in a past meeting that before the city accepted a grant they should weigh their decision against whether they would be willing to pay for the project themselves if they there was no grant; she added that she didn't feel comfortable with the technology of these cameras for the sake of her children. Councilmember Keil found the agenda statement conflicting, since erecting signs was rrriir acceptable but they couldn't share the actual locations. City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 600 Councilmember Shafer said the public did not want cameras on Fourth Avenue and the camera on the Fire Department building should be moved inside the building. She questioned why the citizens should be watched. Councilmember Smith asked Chief Clemons to clarify the use of a camera for covert surveillance; Clemons said as long it was in plain view no warrant was necessary. Cameras could not be used to look into houses without a warrant, but plain view was allowable by state and federal standards under the Plain View Doctrine. Motion To Amend (Keil/Bardarson) Amend Resolution 2011 -036, by reinstating the strike -out language in Section 11: "City Council approval is required of all surveillance camera locations by resolution in areas other than the critical infrastructure identified in the latest Vulnerability Assessment for the City of Seward from Alaska Homeland Security." Motion Passed As Amended Yes: Casagranda, Shafer, Bardarson, Keil No: Valdatta, Smith, Dunham Deputy Chief Eddie Athey said moving the cameras inside was not recommended; in order for the camera to do its job, it would have to capture outside the facility. Motion To Postpone (Casagranda /Keil) Postpone Resolution 2011 -036 to the June 27, 2011 meeting. Motion To Postpone Passsed Unanimous NEW BUSINESS Resolution 2011 -043, Authorizing The City Manager To Reclassify The Utility Office Assistant From A Range 6 -8 To A Range 11 -13 And Change The Title To Electric Executive Assistant. Motion (Bardarson/Keil) Approve Resolution 2011 -043 Oates stated when the Electric Department Office Assistant retired earlier this year, the department wanted to reclassify the position to expand the duties and needed knowledge for the department. Historically, the Electric Department's biggest criticism was in providing timely public service. Electric Utility Manager John Foutz thanked Kathy Shipe who was the Office Assistant with the city for over 20 years for her time. This position was originally a part -time position and the range was challenging to find a quality person. The upgraded position was also required because the Electric Department needed a higher degree of computer skills and a background in bookkeeping, billing and digitizing records. City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 601 Motion Passed Unanimous Resolution 2011 -046, Authorizing The City Manager To Enter Into A Change Order For An Amount Not -To- Exceed $47,600 Funded By The Cruise Ship Head Tax To Complete The Interior Slab Work Necessary To Relocate The USCG Structure. Motion (Shafer/Bardarson) Approve Resolution 2011 -046 Oates gave reasoning behind the proposed change order and recommended council approval. Councilmember Casagranda didn't understand why the city should help pay the government to move their own building; Oates said he believed the USCG would leave if they didn't have a building to operate from, and the Coast Guard was spending a considerable amount of money to move their building already. It was beneficial for both parties. Mayor Dunham asked about the road that was torn up during the process to restore access to the boat launch and if that was contemplated within this funding. Oates said the intention was to make all repairs. Vice Mayor Bardarson asked why the slab wasn't included in the initial project plan; Oates said this was a complex project and couldn't answer as to why the USCG didn't include it. Motion Passed Unanimous Resolution 2011 -047, Amending Resolution 2010 -129 Which Authorizes The Issuance And Sale Of General Obligation Bonds To Pay Costs Of Library /Museum Capital Improvements. Motion (Keil /Shafer) Approve Resolution 2011 -047 Oates said the original resolution was set at $3,730,000 and was before the council tonight at $3,700,000 to give council flexibility to amend to a lower amount. He deferred to a funding update handout to phase the project because at this point the city did not have enough money to pay for the project. The general obligation bond approval had not yet occurred, a referendum petition application for the funding source of the alcohol and tobacco sales tax was recently approved by the clerk and that ordinance could potentially be repealed by a vote of the people. The impact this would have on the project was the final completion date would not be until February 15, 2013. Oates didn't see a prudent way around phasing the project and noted the proposed phasing: • Phase 1: Three million dollars, leaving about $400,000 in the bank for flexibility; council should give consideration in keeping the bond amount at the $3,700,000 level. ei • Phase 2: Commit the remaining $4,400,000 of the project, which consisted of the $3,700,000 bond and various state grants, but left other expenses. City of Seward, Alaska City Council Minuses June 13, 2011 Volume 38, Page 602 Assistant City Manager /Community Development Director Michelle Weston said the The Rasmuson Grant would not be allowed to be spent until January 2012 and the NEH Grant would be given to the city in "chunks" over time. Both grants were reimbursable, which meant the city would have to spend the money and then apply for reimbursement. Rise Alaska Project Manager Kent Crandall and Contractor Scott Ivany of PCL came under the budgeted amount and the architects supported the bid. Oates thanked both of them for their work to put this project back together. Oates responded to Vice Mayor Bardarson's inquiry as to why the cost went up by $200,000 to $7,400,000 by explaining that it was due to the size expansion of the full basement; he further clarified that Phase 1 would include ordering the steel plus the concrete foundation would be installed and heated throughout the winter. Oates said the Finance Department was currently working on the bond application and would have it ready for the bond bank's next meeting in July 2011. Keil said she wasn't sure that it made sense to start the project until next spring; Oates countered that this was a viable way to accomplish the project. Keil was concerned that phasing the project would add to the negative criticism from the public. City Attorney Brooking clarified that the bond bank was meeting at the end of July and the bonds could be issued as early as the last week of August. The rules were suspended by unanimous consent to allow Kent Crandall from Rise Alaska and Scott Iverly from PCL to speak to the original proposal. Considering the current situation, a shutdown for the winter was considered to allow the funding to catch up with the project. Iverly said they would have to evaluate the plan to allow for the best savings, and to consider other options and scenarios to get the best use of the money. Crandall added that the best option was to allow them to him move ahead. In response to Keil's inquiry, Oates stated that Kris Erchinger would present the application to the bond bank and that Brooking was the city's bond attorney. Keil said it was the public's right to go out to petition a referendum; she suggested that the city prepare budget cuts if the referendum was voted in and overturned the ordinance. Mayor Dunham expressed his frustration that the bond application process was not moving forward quicker and with more determination. Vice Mayor Bardarson was concerned about starting the project before the bond was secured. Motion Passed Yes: Smith, Casagranda, Keil, Valdatta, Shafer, Dunham No: Bardarson Resolution 2011 -048, Designating S100,000 Of General Fund Undesignated Fund Balance To Cover Costs Associated With The Kenai Peninsula Borough's Implementation Of The City Of Seward's Increase In Sales Tax On Alcohol Beverages And Tobacco Products. Motion (Shafer /Keil) Approve Resolution 2011 -048 Oates defined the intent of this resolution. Since council approved the Ordinance 2011 -003 on May 23, 2011 to raise the sales tax rate on alcohol and tobacco products, the Borough would collect this tax and place a burden on the Borough's software and programming capabilities. This resolution was to identify an amount for the accommodation, and if council would appropriate it, the City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 603 official amount would go back to council for final approval; the funds would come from the general fund. tad Motion To Postpone (Keil /Bardarson) Postpone Resolution 2011 -048 to the June 27, 2011 meeting. Motion Passed Unanimous Resolution 2011 -049, Appropriating Funds In An Amount Up To $1,500,000 For Purposes Of Paying Costs Associated With The Proposed Seward Community Library Museum. Motion (Smith /Bardarson) Approve Resolution 2011 -049 Oates said this would take funds from the general fund reserves. Motion to Postpone (Dunham/Valdatta) Postpone Resolution 2011 -049 to the June 27, 2011 meeting. OTHER NEW BUSINESS Council discussion on putting the Library Museum Project out to bid as a request for proposal. After this evening's discussions, council decided this discussion item was not needed. Council discussion on the GCI Fiber Optic Project. Oates gave an update on the project; it was not hearsay from Dryden and Larue saying they were in an awkward position because they were in business with GCI, but they would not change the limits on the restrictions on the poles. Dryden and Larue were the city's engineers in regards to the city's electric poles; the department was in the process of collecting pole data to develop recommended wind load criteria. They anticipated the results no later than the next meeting. Electric Utility Manager John Foutz added that his staff was currently working on pole data to send to Dryden and Larue. They did not give an indication of when this would be accomplished, but were making it their highest priority. Oates restated administration's goal was not to limit fiber optic capabilities in Seward, but to increase fiber optic capabilities in Seward without jeopardizing the city's power supply. The City wanted to move ahead, and they were doing everything they could do to get this information to council as soon as possible. Valdatta wanted to know why they city was not pursuing putting the cables underground; Oates said it was a function of cost to the customers, although it was an option. Keil didn't understand why they couldn't just use NESC standards and why they were paying people to re- evaluate this over and over again. NESC said the standards allowed areas like Seward to allow for more restrictions to allow for safety. Shafer wanted to know if this higher standard was approved by council; Oates said the standards state to use the NESC standards, as modified by local conditions. Shafer felt policy was City of Seward, Alaska City Council Minutes June 13, 2011 Volume 38, Page 604 1 being made without the council. Looking at the council handbook, she noted it stated council made the policies of the city, Oates contested the city was consistent with the policies established by the council that approved this agreement. Bardarson didn't want to be left out of this opportunity because our city's standards were too stringent. Casagranda said the city already had fiber optics. Keil said the bigger issue was the policy making of this process. Smith said they need to realize and know the strength of the city's poles; some were below standard and he felt they needed to know more about the engineering. Councilmember Keil suggested council hold a special meeting to discuss with administration; council agreed. INFORMATIONAL ITEMS AND REPORTS (No action required) COUNCILS' COMMENTS CITIZENS' COMMENTS Mary Hart from GCI said the poles had been thoroughly engineered contracted through a third -party private firm. The information provided to the city listed specific instances about the poles. The Electric Department said GCI had not provided information requested, specifically pole criteria based on the higher standards that the city was requiring; GCI did not provide that information because GCI felt that request was outside of their contract with the city. GCI was currently building to the NESC standards; safety factors were built -in for sustained wind speeds up to 98 miles per hour with one quarter inch of ice. She said Seward got wind gusts, but not sustainable winds of those speeds. She thanked council for their time. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Councilmember Shafer said noted for the community Dr. Hermiston passed away this past weekend, a former doctor in Seward for five years; there would be a ceremony for her in July. City Manager Oates said it would be important to receive guidance from council on the search process for the next city manager. ADJOURNMENT The meeting was adjourned at 10:28 p.m. htit.004 a ,. h �� f g 881 Jo anna Kinney, CAA •• a•, •• „, ° .q •t om illard E. Dunham , ,r, ,05.- , ... ..,, A I i , ty Clerk f O ..) : v t 'Vs .• • Mayor : an L • (City Seal) y -.--- 1 lir 4.11.46