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HomeMy WebLinkAbout10242011 City Council Minutes City of Seward, Alaska October 24, 2011 City Council Minutes Volume 38, Page 688 CALL TO ORDER i~ 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. ewe 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 City of Seward, Alaska City Council Minutes 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) amj • Ilq d VS y 00 W e f .#4,0d4 ,R ; ar e oF