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HomeMy WebLinkAbout12132010 City Council Minutes City ofSeward. Alaska City Council Minutes December 13, 2010 Volume 38, Page 493 CALL TO ORDER The December 13, 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 Marianna Keil Jean Bardarson Vanta Shafer Bob Valdatta comprising a quorum of the Council; and Phillip Oates, City Manager Jean Lewis, City Clerk Johanna Kinney, Deputy City Clerk ABSENT — Tom Smith, Ristine Casagranda CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING "Mrs. Claus" (Teen and Youth Center Director Josie Ronne) spoke to the council and announced upcoming events such as Breakfast with Santa. Her TYC "elves" handed out cookies to the council and public. She also said the TYC had Sewardopoly board games and gift wrapping services. Winter camps and activities would be planned during the Christmas Break, and to call the TYC for more information. Paul Rupple, on behalf of the Seward Community Foundation, thanked Seward and Moose Pass for their support for the past three years. In 2010, the foundation awarded over $11,000 in grants to local organizations. He listed the many contributions the Seward Community Foundation had made in the past year. The endowment had grown tremendously over the year, due to an unexpected donation from the Rasmuson Foundation, a generous donation from someone they lost this last year, and through the citizen's donating through the Alaska Pick, Click, and Give option for the Alaska Permanent Fund. The Seward Community Foundation's endowment was now over $400,000. Mark Kulstad, spoke on the potential tax increase to fund the library. He was not in favor of another tax increase. As an owner of a hotel in Seward, he found it difficult to bring people in and City of Seward, Alaska City Council Minutes December 13, 20.70 Volume 38, Page 494 he felt this would make it worse. He didn't like charging more to Seward's visitors, when it was already so difficult to get them to Seward. Dan McDonald agreed the library museum project was a good idea and he hoped they could exhaust other avenues before looking at raising taxes. He hoped council spent as much time on the funding of the library as well as the development of it. John French, spoke in favor of the sales tax increase for the library museum project. He reminded council they passed the bond issue already. Between the two options of property and sales tax, he felt a sales tax would reach out to more of the library users. He felt it was more fair and equitable. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda The mayor added a special presentation under Special Orders, Presentations, and Reports. Motion (Neil /Shafer) Postpone the introduction of Ordinance 2010 -009 and Resolution 2010 -130 to the January 10, 2011 meeting and postpone Resolutions 2010 -127, 2010 -128, 2010 -129 to the January 24, 2010 meeting. Motion to Postpone Passed Unanimous Main Motion Passed Unanimous The clerk read the following approved consent agenda items: The November 22, 2010 Regular City Council Meeting Minutes were approved. The December 27, 2010 regular city council meeting was cancelled. Council approved the Restaurant Eating Place Public Convenience Liquor License renewal application for Railway Cantina and Oriental Gardens. Council agreed to sign letter regarding competing applications for a Community Health Center between the City and Chugachmuit. Resolution 2010 -118, Repealing Resolution 2007 -094 And Adopting A Revised Records Retention Schedule For The City Of Seward. Resolution 2010 -119, Amending The 2010 Budget To Record Expenditures Of 5127,557.38 Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees Retirement System Liability, Per HB81. City of Sewarcaa Alaska CTh' Council Minutes December 13, 2010 Volume 38, Page 495 Resolution 2010 -120, Adopting An Alternative Allocation Method For The FY2011 Shared Fisheries Business Tax Program, And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In The Cook Inlet Fisheries Management Area. Resolution 2010 -121, Authorizing The City Manager To Appropriate Additional Funds To Complete The VOIP /PBX Installation For The City Of Seward, Providence Seward Medical Center And Seward Mountain Haven In The Amount Of S20,643.65. Resolution 2010 -123, Authorizing The City Manager To Enter Into A Contract With Harris Sand And Gravel For An Amount Not To Exceed S42,000 For Repairs To T Dock And Appropriating Funds. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Mike Moore was congratulated on his Governor's Award of EMS Provider Of The Year. The Mayor presented a plaque of appreciation to Jean Lewis for her services as City Clerk from May 2002 to December 2010. Borough Assembly Report, Sue McClure stated she spent some quality time with elected officials at AML. She spoke of the land sale in Hope. The opening of the bids was January 15, 2011 in Hope. She spoke of the education cap would be down a bit this year but the expenses were up a million or so. One issue was the original budget presentation that was normally given in Seward would be given elsewhere this year, which McClure did not support. City Manager's Report, City Manager Phillip Oates stated the a contract for $49,952 was signed with Central Environmental to demo the Lechner house /blue house on the property south and west of the library, the new Library Museum site. Central Environmental was the company currently working on the demolition of Wesley, and this work should begin this week. CE's bid for $49,952 includes abatement and disposal of asbestos materials including the concrete foundation. Only the house would be demolished and all utilities would be cut and capped at the building line. The site would be back filled and graded. Good news was the repair timeline for the Lowell Creek Bridge was extended into January 2011. In the Harbor Department, the Breakwater extension project was complete. The USCG re -lit the navigational aid on Wednesday, December 8, 2010 and the warning buoys were removed on Friday. The City was impounding two additional vessels at the Seward Marine Industrial Center for non- payment of storage fees. The vessels owners would have 20 days to file a written appeal with the City Clerk for an administrative hearing. The Z Float installation project was progressing well. The trestle and approach gangway were under construction, and divers installed anodes on the pilings this past week. The City had been watching a coastal erosion problem at SMIC which threatened a Citi of Seward, .=flask`` City Council Minutes December 13, 2010 Volume 38. Page 496 USCG communication tower and a cell -phone tower. The Harbor's Used Oil and Used Anti - Freeze programs continue to protect the environment and save the city money. In 2010, approximately 2250 gallons of anti - freeze and 5,370 of used oil had been collected. The used -oil was processed and recycled by harbor staff and used to heat city buildings, the used anti - freeze was collected by a private company and recycled. Oates wished all Happy Holidays. in response to Council, Oates stated they still hoped to have the Lowell Creek Bridge Repair Project completed on its original timeline. City Attorney Report, Cheryl Brooking stated the city attorney firm continued to provide advice on records requests, Open Meetings Act, contracts, design agreements, funding alternatives for projects, as well as prepared and reviewed organizational documents on the Community Health Center. They worked on platting and code enforcement questions. Regarding the city litigation to obtain land by taking, the appellants had appealed and their brief would be due January 11, 2011 and the city was moving forward with getting the valuation established. In the Harbor, they assisted with vessel compliance, leases, easements, compliance concerns, and insurance recommendations. They worked with the Electric Department on utility rights and the Railbelt Cooperation. In response to council, the tract B land issue was appealed to the Supreme Court, Brooking said it did not interfere with the city's timeline for the progression of this project. Mayoral Report, Mayor Willard E. Dunham stated he just got back from a warm vacation. He had opportunities to look at other cities and how they prepared for the holidays. He thought they could pick something for enhancement each year, whether it was an additional tree or some form of decoration. Other communities added a Iittle piece at a time. He felt our downtown was beautiful and he wanted to add to it. He suggested each time they work a budget; they had an additional "phis" for the community — park bench, tree, etc. Kicking off the holiday season with ceremonial tree lighting would be ideal, too. Northland Barge and Tug carne to town today and Dunham congratulated the AK Railroad for attracting them back. He had a meeting tomorrow night on the Economic Development and he had a previous engagement in Anchorage with the Japanese Consulate. On Wednesday, January 15 201 1 Dunham would be meeting with the Secret Service and the City Manager regarding the recent credit card fraud. The National Guard would meet with Dunham on Friday to Iook at previous property they had once had, to see if they could have people be a part of the ward in Seward to establish an armory. Other Reports, Announcements and Presentations Representative Paul Seaton Gave A Power Point Presentation On Health And Wellness Public Policy. PUBLIC HEARING Ordinance 2010 -008, Establishing The Seward Community Health Center Board Of Directors. 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. City of Seward, Alaska City Council tl4inute.s December 13, 2010 Volume 38, Page 497 Motion (Bardarson /Shafer) Enact Ordinance 2010 -008 Oates stated the intent of this ordinance. Start up costs were expected for this board, but unknown at this time. The intent was to allow the city council to select the initial members for the Seward Community Health Center Board of Directors. This new board needed to meet by tomorrow to comply with the CHC application guidelines. Rules were suspended to allow Jimmy Ng, who was providing assistance to administration on the CHC application, to explain that the City Council could be the entity that could establish the executive director. Brooking stated this ordinance was being added to title two of the code, which provided indemnification to boards and commissions. But because they were providing health care services, by ordinance and by charter, indemnification would not apply to this board (it would apply under the board's non profit status). Motion Passed Unanimous NEW BUSINESS Resolution 2010 -122, Appointing Individuals To Serve As Charter Members Of The Seward Community Health Center Board Of Directors. Motion (Bardarson /Shafer) Approve Resolution 2010 -122 Oates stated the initial board members would be appointed by the city council. He was gratified to have so much interest in those who would like to serve on the board. The council only appointed the initial members. He recommended selecting 15 members to make up the initial board. The second 15 members were to recognize those who volunteered as recommendations as replacements to the board. He recommended approval. Shafer, Bardarson and Keil declared a potential conflict as they were on the initial and recommended replacement lists of the board. They asked for a ruling, Mayor Dunham ruled no financial conflict existed, and the council did not appeal that decision. Brooking noted the financial benefit of conflict of interest did not apply here but noted this potential conflict was different, as it was a common law conflict that referred to duty of loyalty. This resolution triggered that, because the members in question would be on two differing entities. A conflict was not apparent with this initial resolution, but for future instances, there could be a potential conflict down the road, so she recommended each time an issue regarding this board came up, that a ruling on a conflict was recommended each time. Valdatta wanted to know if anyone from the EMT, fire department, or ambulance Corps was represented on the board. Oates stated not at this time. Motion Passed Unanimous City of Seward, Alaska City Council Minutes December 13, 2010 Volume 38, Page 498 Council recessed 8 :38 p.m. Council resumed 8:50 p.m. Resolution 2010 -124, Amending The 2010/2011 Biennial Budget To Reflect Mid -Cycle Budget Changes To The Electric Enterprise Fund Only, And Appropriating Funds. Motion (Bardarson /Shafer) Approve Resolution 2010 -124 Oates stated the city passed its first biennial budget last year. The city intended to do a mid cycle amendment at least once and that was the intent of the resolution before them tonight. Revenues and expenses were further modified to be a more concise account for the Electric Enterprise Fund. He recommended approval tonight. Erchinger clarified that the major change was to break out on the operating revenue side of the budget, the energy revenue charges to the public. She reminded the council that last year the staff recommended utility rate increases since one had not been passed in a long time. Instead, rates were increased in 2010 and another planned for 201 1. She still felt it was not enough to sustain the electric utility. She projected they would run out of cash in the electric enterprise fund at the end of 2012. This would also impact the general fund budget. Vaidatta felt the city had a lot of inventory in comparison to Chugach Electric. Erchinger said they needed to bulk up their inventory over the last few years due to projects in town; the city's inventory had remained fairly consistent, she felt. She also thought it had more to do with the location of Seward as well. Motion Passed Unanimous Resolution 2010 -125, Amending The 2010/2011 Biennial Budget To Reflect Mid -Cycle Budget Changes, And Appropriating Funds. Motion (Reif /Bardarson) Approve Resolution 2010 -125 Oates stated the intent of this resolution was similar to the previous one. Staff would continue to explore loan and grant opportunities. Oates listed the numerical capital needs for the various City of Seward departments and budgets. Erchinger noted the two funds that were consistently able to meet their budget requirements were the parking enterprise fund and the motor pool fund. The other funds of the city, however, relied on state and federal funding and unfortunately times were changing. She felt that this was a non- sustainable model and they should develop some set of revenue source in order to avoid being raced with huge rate increases down the road, which would be the other option, in her opinion. Keil stated the road improvements scheduled for 2010 to 2011 was moved because of DOT. which Oates confirmed. It was unknown when those improvements would be made, but they would be made, Oates thought. Erchinger vas concerned about revenue sharing eventually moving to pension contributions. City of Seward, Alaska City Coto2cil Minutes December 13, 2010 Volume. 38, Page 499 These items did not have funding associated with them. each item. if funding was discovered, would come before council for approval. Council suspended the rules to allow Representative Paul Seaton to speak on the state capital budget. They were anticipating deficits with the decline of oil. He was working long term to try and pay the capital expenditures off. He feared of reducing the revenue sharing as well. Motion Passed Unanimous Resolution 2010 -126, Authorizing The City To Become A Member Of The Alaska Railbelt Cooperative Transmission & Electric Company, Inc., A Non- Profit Cooperative; Appointing Two Directors As Representatives Of The City; Authorizing Articles Of Incorporation To Be Executed And Filed; And Approving Bylaws For The Cooperative. Motion (Bardarson /Shafer) Approve Resolution 2010 -126 Oates gave a brief synopsis of this organization before the council. The City of Seward was slated to be a charter member if they approved this resolution tonight. There was no fiscal requirement. The resolution established Electric Utility Manager John Foutz and Mayor Willard Dunham as directors. This allowed the City of Seward to be a voting entity of the cooperative. John Foutz stated new information had come in by the other utilities that affected the articles /bylaws before the council. Amend (Shafer /Keil) Amend Articles of Incorporation, Article VIII, Membership by striking "electric energy or other" and adding "one or more" in it's place, and striking "such services are" Motion Passed Unanimous Dunham declared a possible conflict of interest because he was related to a member of another member of the cooperative and handed the gavel to Vice Mayor Bardarson. Foutz agreed that no financial gain or compensation was involved. It was first discussed that no conflict was ruled declared — but it was noted travel compensation would be given. For safe measure, Bardarson ruled a conflict existed and Dunham did not vote on the motions listed below. Bardarson questioned if her sister working for the organization as legal council was a conflict of interest. Brooking stated it typically was not considered as a conflict in this type of instance. Amend (Shafer/Keil) Amend Resolution 2010 -126, section 3c: add a comma after "City Council ", strike "neither the Member Director of a member City of Seivar ,ilaska Ci' Council Minutes December '3 2010 Volume 38, Page 500 of the Member Director's family ", strike "another" and add "any" in it's place. (To read: "The City's Member Director shall be a resident of Seward, shall be appointed by City Council, and shall not be employed by any member of the ARCTEC Cooperative. The City's selection of Member Director shall not be Limited to elected officials. ") Motion Passed Unanimous 'lain Motion Passed As Amended Unanimous Bardarson passed back the gavel to Mayor Dunham. OTHER NEW BUSINESS Council scheduled a work session with the Ad -Hoc Land Committee for Wednesday, January 26, 2011 at 7:00 p.m. Council unanimously voted and appointed Bruce Jaffa and Bob Linville to the Port and Commerce Advisory Board. Applicants were: Bruce Jaffa, Russ Maddox and Robert Linville. INFORMATIONAL ITEMS AND REPORTS (No action required) Mayor thank letter to Principal Kingsland re: Veterans Day Program. COUNCILS' COMMENTS Valdatta said the movie "Christmas with a Capital C" was on the cable channel this month. He wished Jean Lewis good luck and wished all Happy Holidays. Shafer said she would miss Lewis and welcomed Kinney. Water was starting to be a scarce resource on the planet. She had read Alaska was a huge resource and would like our representative to take a look at that. She wished all a Merry Christmas and Happy Holidays. Keil congratulated Lewis on her retirement. She congratulated Mike Moore and noted the service he and the Volunteer Ambulance Corps proved was invaluable. She wished all a Merry Christmas. Bardarson wished Leyyis the best on her retirement. They were going to miss her. Happy Holidays to all. She was able to represent the city at the TOTE Reception in Anchorage and it was a nice affair and spoke with many representatives. Dunham thanked Bardarson for attending the TOTE reception. He wanted to outline some City of Seward, A laska City Council Minutes December 13, 2010 I . olume 38, Page 501 "just for us" improvement items, and maybe the department heads could look at what kind of enhancements we could be doing. He commented Pat Williams' Christmas Tree was gorucous. He wished all a safe and Happy Holidays. CITIZENS' COMMENTS - None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None ADJOURNMENT The meeting was adjourned at 9 :49 p.m. l f / r /e/ /> / i d f r � Li.. L L Johanna Kinney, CMC Willard E. Dunham Deputy and Incoming City Clerk Mayor (City Seal) G N