HomeMy WebLinkAbout10242011 City Council Minutes City of Seward, Alaska
October 24, 2011 City Council Minutes
Volume 38, Page 688
CALL TO ORDER
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The October 24, 2011 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Vice Mayor Jean Bardarson.
OPENING CEREMONY
Lt. Butch Tiner led the Pledge of Allegiance to the flag.
SWEARING IN OF NEWLY ELECTED OFFICIALS
Newly- elected council members Vanta Shafer, Christy Terry, Bob Valdatta and Mayor David
Seaward were sworn into their seats by City Clerk Johanna Kinney.
ROLL CALL
There were present:
David Seaward presiding and
Jean Bardarson Vanta Shafer
Marianna Keil Bob Valdatta
Ristine Casagranda Christy Terry
comprising a quorum of the Council; and
Michelle Weston, Assistant City Manager
Cheryl Brooking, City Attorney
Johanna Kinney, City Clerk
Brenda Ballou, Deputy City Clerk
Absent — None
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Tim McDonald congratulated the new mayor and Councilmember Terry. McDonald felt a
message had been sent that there should be no entitlement in government; there should be no empire
building at the expense of tax payers.
Sue McClure reminded everyone that tomorrow was the Borough mayor run -off election.
She encouraged everyone to vote.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Shafer /Keil) Approval of Agenda and Consent Agenda
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 689
Bardarson requested the scheduling of a special meeting to update the Local /State /Federal
Legislative Priorities be added to the agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
The October 10, 2011 City Council Regular Meeting Minutes Were Approved.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
TYC Councils Day Proclamation
October is Domestic Violence Awareness Month
Extra Mile America Proclamation
Chamber Of Commerce Report, Executive Director Cindy Clock stated that now that she
had a full staff and they would be following through on the Economic Development Assessment
study done last year. The Chamber was in the process of re- engaging Kristi Bell to assist in the
implementation phase to reverse the decline Seward had seen for the last ten years. Trends included
population decline, fewer retail businesses, a low property tax base and less business retention and
expansion. She wanted to have a "Business Advisor" link on the Chamber's website, but she needed
input from the community's business leaders to make posts to fill that portion of the website. Clock
said she was looking forward to working with the council to grow the community.
City Manager's Report, Assistant City Manager Michelle Weston stated there had been
no purchases approved between $10,000- $50,000 since the last council meeting. The city had been
advertising to hire a replacement for the Assistant City Manager /Community Development Director
position. Action on the hiring would await the arrival of the new City Manager, James Hunt, who
was expected to begin work no later than November 1, 2011.
The city had entered into a special land use permit arrangement with the U.S. Park Service
for temporary use of the former Harbor Dinner Club site for staging work trailers (only) for the
Library/Museum Project, through the end ofNovember. Weston thanked Jeff Mow and the U.S. Park
Service for their assistance and partnership in this effort.
Acting City Manager Kris Erchinger had been arranging meetings with healthcare providers
in town, to continue conversations begun by the former City Manager, relative to the new
Community Health Center with the goal of identifying collaboration and partnership opportunities.
So far, the reception by healthcare providers had been very positive. In particular, Chugachmuit was
invited to attend the community health center meetings, and had expressed their desire to work in
cooperation with the City.
Harbor /SMIC: Construction had begun on the new 190 -foot cell phone tower located at the
westerly side of SMIC. Four harbor staff attended the Alaska Association of Harbormasters
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 690
conference in Homer the week of October 10 -14, 2011. One of the staff was recognized as Seward
L im Harbor employee of the year; that employee would be recognized in Seward on December 12, 2011.
The harbor completed the Coast Guard required Facility Security Training on October 14, 2011. The
harbor would undertake a small drainage maintenance project along the waterfront. The Port and
Commerce Advisory Board (PACAB) held a well- attended public work session meeting on October
19, 2011 on the subject of expanding SMIC to accommodate the Coastal Villages fishing fleet and
future growth. A State of Alaska environmental consultant contacted the harbor about the possibility
of unloading cargo consisting of natural gas piping 35 vessels of 10,000 tons apiece.
In response to Councilmember Valdatta's inquiry as to whom was overseeing the daily
construction operations at the Library /Museum, Weston replied that Stefan Nilsson, the city's
Building Inspector, as well as RISE sends Kent Crandall, project manager, down from Anchorage
every second to third day to check on the progress. PCL's project manager maintained an office in
the basement of the current library and people were welcome to go by to see him. Weston added that
the foundation should be completed by the end of November. At that time it would be tented and
kept warm through the winter until April when the construction picked up again. There would be a
person on -site full -time to oversee the project.
Councilmember Terry requested to see the specifics related to the change orders being issued
for the Library /Museum project; she also requested to see the design plans. Weston said she would
furnish those to Terry.
Mayor Seaward asked if the Superintendent position for wastewater had been eliminated.
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Erchinger replied the position had been eliminated. Two years ago the role was designed to prepare
that person to eventually take over for the Public Works Director who would be due to retire in the
not too distant future; the idea was to have someone learn the city's infrastructure. As well, that
position was also responsible for much of the city's grant writing and managing some of the city's
capital projects. That position was eliminated in the current proposed 2012 -2013 budget.
Councilmember Shafer asked Erchinger and Weston how close the city was to having the
sewer and wastewater infrastructure up to date. Weston responded that the city was at least one to
two years out and that the city's lack of a digitized mapping program caused them to manually tape
together maps and plans. In her opinion, the city was far behind and the tools that currently existed
would impede development and the city's ability to respond. Councilmember Keil added that there
were several items coming next year that would help, including completing security for the sewer
system, manhole refurbishing, GIS for $60,000 and a systematic sewer pipe replacement project.
City Attorney Report, Cheryl Brooking stated she had been advising on the Seward
Industrial Marine Center, various employment issues, various harbor issues relating to vessel
impoundments, and the Resurrection Bay Conservation Alliance (RBCA) lawsuit.
Mayoral Report, David Seaward stated that Senator Begich had reached out to congratulate
v him on his new office. He thanked Ron Long for his work on having a successful meeting relating to
Coastal Villages.
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 691
Other Reports, Announcements and Presentations
An update was given by outgoing President and CEO, Ian Dutton, on the Alaska
SeaLife Center. He thanked the council for being so positive to work with. Dutton said they were
currently conducting a national search for a new CEO. He said Dr. Tara Riemer Jones had been put
into the role as interim President and CEO while the search continued. Dutton thanked Michelle
Weston for her part in getting the whale mural painted on the wall of Christo's and for her other
contributions and support of the SeaLife Center.
Dutton said last month he accepted on behalf of the SeaLife Center National Accreditation
from the Association of Zoos and Aquariums (AZA); this accreditation represented the national
"Gold Standard ", as there were less than five percent of the nation's institutions who could claim
such status.
He said the Alaska SeaLife Center was a large contributor to the economy of Seward,
providing more than 90 jobs and attracting more than 150,000 tourists to downtown Seward which
resulted in approximately $25 million per year being injected into the local economy.
Dutton asked the council to keep the Alaska SeaLife Center high on the city's list for
legislative priorities in order to allow them to obtain additional matching funds for grants.
In response to Councilmember Keil's inquiry regarding if the SeaLife Center was involved
with the oil companies relating to their emergency oil spill response plans, Dutton said they were magi
only recently contacted to help in the event of an emergency. He said they had just entered a contract
with Alaska Clean Seas for wildlife response in the Arctic, and they had also determined that the
SeaLife Center would be able to take in up to twelve polar bears at any one time if need be. There
were now four oil companies represented on the SeaLife Center's Board, including BP, Conoco,
Exxon and Shell.
Vice Mayor Bardarson included her thanks to Dutton for his contributions to the SeaLife
Center and to the City of Seward.
PUBLIC HEARINGS
Resolution 2011 -079, Amending The Wastewater Tariff And Providing For A 6% Increase In
Calendar Year 2012 And A 6% Increase In Calendar Year 2013 And Providing For An
Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To
The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index For
All Urban Consumers.
Motion (Shafer /Bardarson) Approve Resolution 2011 -079
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 692
Mark Kulstad said although this was not a tax per se, it raised the cost of doing business in
Seward. He said there appeared to be a positive net cash flow of $53,000 for the previous year and so
questioned why there was a need to increase rates.
The public hearing was closed.
Casagranda asked where the `transfer out' money went. Keil said that some of the money
went to cover general governmental expenses. Acting City Manager /Finance Director Kris Erchinger
said the transfers between funds were partly due to administrative costs. The largest piece was
related to `payments in lieu of tax' wherein the various city enterprises were charged by the city as if
they were private businesses.
Valdatta said when the sewer plant was originally designed, it was underestimated and
subsequently needed great improvements over time.
In response to Seaward's question, Erchinger stated the superintendent position was
eliminated for the 2012 -2013 budget.
Shafer asked how close the city was to getting its infrastructure stabilized. Weston replied
that she believed the city was one to two years out. Weston suggested that the GIS plans get digitized
because Seward was behind and this was impeding its own development.
Keil added that there were several infrastructure projects on the list for using any funds that
came into the city.
Shafer said the council had been having work sessions and was trying very hard to find
solutions to solving the infrastructure problems in the city.
Terry asked where the two percent increase over CPI came from. Erchinger replied that they
had to determine what the critical risk needs were for the city and they were trying to find a solution
that would not result in a `rate shock' for the residents of Seward.
Seaward asked if there were businesses in town receiving reduced rates. Erchinger responded
that for electric the Alaska SeaLife Center, the Alaska Railroad and Icicle Seafoods all received
special rates per previous city council action.
Valdatta asked who paid the electric on the coal terminal. Erchinger said the Alaska Railroad
paid for the utilities and any arrangements for Usibelli Coal Mine had its own arrangements with the
Alaska Railroad.
Motion Passed Unanimous
Resolution 2011 -080, Amending The Water Tariff And Providing For A 4% Increase In
Calendar Year 2012 And 6% Increase In Calendar Year 2013 And Providing For An
Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 693
The Five Previous Years' Average Increase In The Anchorage Consumer Price Index For All
Urban Customers.
Motion (Keil /Shafer) Approve Resolution 2011 -080
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Tim McDonald said that a lot of people out of the city limits who were on well water paid
for the water tariff but weren't receiving the water.
Mark Kulstad said he understood the city wanted to have the lights on and the water
flowing, but that the belts of the community were pretty tight already. He was concerned about
increasing utility rates without reducing expenses.
Mary Kulstad thanked the council for doing a good job and giving their time. She said
administrative services had always been high and she had never heard of any cuts being suggested.
She said no business could operate with a 50% administration fee like the city had.
The public hearing was closed.
Valdatta suggested perhaps a flat rate would help businesses, especially if they installed their
own hot water heater.
Shafer said money that would otherwise have gone into the motor pool fund would instead be
going into improving the transformers. She reminded the citizens that the budget would not be
finalized until December, and the new city manager would be here next week and would be
reviewing the budget. She urged the residents to come forward with their ideas, wishes and concerns.
Erchinger clarified that the proposed rate increase would be 4% in 2012 and 6% in 2013.
Keil added that there were no cost of living increases for employees included in the budget.
Shafer asked how much the budget was actually reduced through the work sessions.
Erchinger said it depended which department was being considered, but that she believed well over
$1 million had been cut out of the total budget.
Motion Passed Yes: Valdatta, Terry, Bardarson, Shafer,
Keil
No: Casagranda, Seaward
Resolution 2011 -081 Amending The Electric Rates And Charges Tariff To Include Automatic
Annual Adjustments To All Rates And Fees By A Cumulative Amount Of Ten Percent In 2012
And Five Percent In 2013.
Motion (Bardarson /Keil) Approve Resolution 2011 -081
City of Seward, Alaska City Council Minutes
October 24, 2011 volume 38, Page 694
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Mark Kulstad questioned the salary figures in the budget for the water and wastewater
departments. He also questioned the amounts that were reported as being `transferred out' and what
those funds were used for because the dollar amounts seemed very high.
Tim McDonald stated that he did not attend the budget work sessions because that was not
his job. He suggested an advisory vote for non - residents.
Kevin Clark said that continuing to raise expenses on business owners was not the way to
improve the city's economic activities. He said he had been an electrician for over 30 years, and did
not understand why businesses paid a higher rate than residents for electricity. He suggested leveling
the playing field between businesses and residents would be helpful. He also clarified that the
decrease of 5% in Chugach's rate decrease was at wholesale and the city's increase of 10% in rates
were at retail.
The public hearing was closed.
Councilmember Casagranda said in the future these discussions should not be held in the
months of March or September so that more business owners could attend.
ism
Motion To Amend (Shafer) Amend Resolution 2011 -081, Exempting
Businesses From Increases For The
Months January — April.
Erchinger stated that in the last 12 years, Chugach Electric passed onto the city rate increases
of 81 %. Of that, the city only passed 2% onto its customers. There had been zero electric rate
increases from 2003 -2009 for the city.
Motion To Amend Died For Lack Of A Second
John Foutz from the Electric Department explained the varying rate structure. He said
generally it was an administrative decision as to whether the businesses should support the residents
or vice versa.
Seaward asked where the city's 3% sales tax went, and if it offset the utilities. Erchinger
responded that 100% of the sales tax went into the General Fund.
Motion To Amend (Terry /Bardarson) Amend Resolution 2011 -081, Changing
The Second Whereas To Strike
`Increases' And Add `Adjustments'.
Motion To Amend Passed Unanimous
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 695
Motion To Amend (Casagranda) Amend Resolution 2011 -081, Changing
The Increase From 10% to 6 %. mug
Motion To Amend Died For Lack Of A Second
Main Motion Passed Yes: Valdatta, Terry, Bardarson,
Shafer, Keil
No: Casagranda, Seaward
Resolution 2011 -082, Amending The Port & Harbor Tariff Regulations For 2012 And 2013.
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.
Motion (Bardarson /Shafer) Approve Resolution 2011 -082
Ron Long spoke on behalf of the Port And Advisory Committee (PACAB).
Valdatta asked how many non - taxable boats were in the harbor. Long responded that he did
not know that actual number, but said he felt it was a small number relative to shore -based property.
Motion Passed Unanimous
Meeting was recessed at 9:27 p.m.
Meeting was resumed at 9:30 p.m.
UNFINISHED BUSINESS
Ordinance for Introduction Postponed from a Previous Agenda
Ordinance 2011 -004, Amending Portions Of Seward City Code 15.10.140 Definitions To
Change, Update And Accommodate The Wishes Of The Public.
Motion Back On The Floor Introduce Ordinance 2011 -004
(Bardarson /Shafer)
City Clerk Johanna Kinney explained that the Planning & Zoning Commission had
requested this Ordinance be returned to them in order to incorporate the additional public feedback
they had received.
Motion To Refer (Keil /Bardarson) Refer Ordinance 2011 -004 To The Planning
& Zoning Commission
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October 24, 2011 Volume 38, Page 696
A Work Session will be planned for Council to review the Ordinance with the Planning & Zoning
Commission.
Motion To Refer Passed Unanimous
NEW BUSINESS
Nominate, elect, and swear in a member as Vice Mayor. The Mayor opened the floor for
nominations.
Motion (Shafer /Keil) Nominate Bardarson As Vice Mayor.
By Unanimous Consent, the nominations were closed.
Bardarson stated she would accept the role of Vice Mayor.
Motion Passed Unanimous
Jean Bardarson was sworn in as Vice Mayor by the City Clerk.
Appoint Boards and Commissions Liaisons.
Motion (Shafer /Keil) Have Boards And Commissions Provide
Periodic Reports To Council.
Motion Passed Unanimous
Motion (Casagranda /Shafer) Nominate Casagranda To Sit On The Kenai
Peninsula Borough Economic Development
District (KPBEDD) Representative for the
City of Seward.
Casagranda stated she would accept the role to represent the City of Seward on the KPBEDD.
Motion Passed Unanimous
Council discussion on allowing a City of Seward Seward Bear Creek Flood Service Area Board
( "SBCFSAB ") Seat to become an area -wide seat.
Motion (Keil/Bardarson) Direct staff to bring forward a resolution
Supporting Kenai Peninsula Borough
approval for a City of Seward Seat on the
Seward Bear Creek Flood Service Area
Board To Become An `At Large' Seat
Within The Service Area.
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 697
Terry asked if APOC paperwork was a requirement for this board. McClure responded that it
INJ was not a requirement.
Motion Passed Unanimous
Schedule a special meeting to update the Local /State/Federal Legislative Priorities.
A special meeting was scheduled for Wednesday, November 2, 2011 at 5:30 p.m.
OTHER NEW BUSINESS
INFORMATIONAL ITEMS AND REPORTS (No action required)
COUNCILS' COMMENTS
Shafer welcomed Councilmember Terry and Mayor Seaward. She noted that the council
consisted of five women and could not recall it ever happening before. She thanked Ian Dutton for
his work and wished him well. She added that she thought council was between a rock and a hard
place relating to the budget; she encouraged the council to look in other directions for increasing
revenue besides raising utility rates, including selling clean, potable water around the world.
Keil encouraged everyone to vote tomorrow for the Borough Mayor run -off. She thanked all
the people who worked with domestic violence victims. She said she didn't like voting for the utility .41
increases, but was convinced that it was necessary for improving the city's infrastructure. She
welcomed the Mayor and Councilmember Terry. She encouraged people to get involved with the
Planning & Zoning Commission.
Bardarson also encouraged everyone to vote tomorrow. She congratulated the Mayor and
Councilmember Terry. She thanked everyone who attended the PACAB meeting on October 19,
2011.
Valdatta said he would support Shafer's idea of selling water, and would help her draft the
resolution. He said people driving without their headlights on had gotten to be a real problem on the
highway and in town. He congratulated the new people on council.
Casagranda had a great time at the Pumpkin Prowl. She wished everyone a Happy
Halloween and encouraged people to dress their kids in reflective gear.
Terry congratulated Bardarson on accepting the Vice Mayor role again. She apologized to
Bardarson for her verbal slight toward Bardarson at a previous work session and said she didn't
mean to cause offense. She said she received a citizen request to change Citizen Comment time from
two minutes to three minutes and hoped council would have further discussion about that. She
thanked the TYC council for hosting the city council this evening.
Seaward said he felt strongly about the council being transparent and he would encourage
the new city manager to participate in 'town hall' meetings. He thanked everyone for their support.
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 698
CITIZENS' COMMENTS
Patty Linville offered the library basement as a `neutral location' for the 'town hall'
meetings. She said Spring Creek was not staffed to help with the cabinets; they had closed down that
program. She said that the staff at the library was taking a photograph of the project every day from
the same location in order to record the building. She stated her support for the Coastal Villages
project and said it would help the economy of Seward.
Sue McClure thanked the council for moving forward with changing the SBCFSAB seat to
be `at large'. She said she needed a representative from the city to attend the flood board meetings, a
role that had been recently vacated by Michelle Weston.
Tim McDonald said it was a `sticking point' for all people that a basic utility would be such
a `profit center'. He agreed that Seward had untapped resources that we were not taking advantage
of. He asked why the multi - million dollar shipyard was barely breaking even; he suggested a forensic
audit on the operations there. He questioned the veracity of the RFP process and was corrected that
the SMIC Engineering Project had been an open bid process and that R &M Consultants was the
winning bidder from among many bidders. He suggested that non - residents be included by advisory
vote on relevant topics.
Kevin Clark said the flood service board was advisory and therefore didn't require an APOC
form. He encouraged the council to pursue removing or altering APOC requirements. He rebutted
Kris Erchinger's previous statement about no electricity rate increases by saying he meant any utility
or tax. In general, he experienced cost of living increases as a citizen of Seward. He was excited
about Coastal Villages as a positive move for the city. He said it was up to a private business to come
in and sell the water, not the city's.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
Keil said Coastal Villages was a great thing for Seward. She would like to see the community
come together and achieve something. She encouraged residents to be cautious about gathering
information on Seward City News because much of the information posted was incorrect or
incomplete; she encouraged people to get involved to get accurate information.
Shafer said she thought the public notice should reflect meeting content more accurately,
relative to the recent PACAB meeting; it should have stated that the meeting would relate to wave
action.
Bardarson said the citizens of Seward demonstrated their support for Coastal Villages by
their attendance at the PACAB meeting. She added that the city had been approached within the past
year about selling water, and that Director of Public Works William Casey told her it was a matter of
getting it up from underground. It would be important to have a storage tank and there was interest
out there from private enterprise buyers to purchase water from the City of Seward.
City of Seward, Alaska City Council Minutes
October 24, 2011 Volume 38, Page 699
Valdatta said the bridge on Nash Road did not have enough clearance and should be
addressed. He added that even $.50 per ton charge on coal would be a boon for the city, but he had ...r
been told it was not legal.
Casagranda said she would like to see the business and residential rates for electricity be the
same eventually.
ADJOURNMENT
The meeting was adjourned at 10:26 p.m.
1
Jo anna Kinney, CMC David Seaward
ty Clerk Mayor
(City Seal)
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