HomeMy WebLinkAbout11142011 City Council Minutes City of Seward, Alaska City Council Minutes
November 14, 2011 volume 38, Page708
CALL TO ORDER
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The November 14, 2011 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Mayor David Seaward.
OPENING CEREMONY
Police Chief Tom Clemons led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
David Seaward presiding and Ristine Casagranda
Christy Terry Jean Bardarson
Bob Valdatta Vanta Shafer
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
Absent — Marianna Keil
is` CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Tom Swann spoke in support of adding the Friends of the Jesse Lee Home to the city's
priority list. He recognized efforts should be coordinated with the city. The Friends had always
lobbied as a statewide group. They did not want to be the reason the city didn't get other
appropriations, so they would work with the city to make sure that was not the case.
Brandon Anderson spoke on the Civil Air Patrol and their annual fundraising project. They
asked for cooperation from the community and also from the city for any funds they could give.
Paul Rupple welcomed the new mayor and manager. He cautioned them to go slow while
they were new in town. Priority lists in town should be infrastructure. Coastal Villages was a
priority and stated the Jesse Lee Home should not be on the priority list. He felt these priorities may
compete against each other. He advised those new on the council to take a walk through the home.
Rupple also said there shouldn't be on the priority list paying off a bunch of lawyers to fight the
RBCA lawsuit.
Hilda Lespron just moved inside city limits. She had a letter from the Seward Arts Council
and read it to the council. The Arts Council was requesting the City Council put $10,000 to the arts
council back in the budget as it was taken out. Lespron listed the many events and performances to
Seward.
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November 14, 2011 Volume 38, Page709
Emily Gustafson spoke in support for the Seward Arts Council and following through on the void
original agreement of allocating the original amount of $20,000 to the arts council. Gustafson
explained what the arts council was made up of and what they do for the community.
Tim McDonald gave a brief report on the Cook Inlet Aquaculture Association that he was a
member of as Seward's representative. The good news on silver salmon was the return was
projected for the next year was 35% more. There was a disease problem that the association was
working with. The United Fisherman of Alaska passed some resolutions regarding invasive species
and McDonald apologized for not providing them to council tonight. They also passed a resolution
supporting the re- establishment of the Alaska Coastal Zone Management Program. It gave Seward
another avenue for development and participation in the process.
Darryl Schaefermeyer thanked the council for their past support for the Alaska SeaLife
Center. He spoke on the ordinance for introduction that repealed exemptions on bed tax and wished
council would reconsider this exemption for non profits. He hoped they would consider that in the
light of this ordinance because non profits were struggling in this economy.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda
Ordinance 2011 -006 was ulled from the consent agenda.
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Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2011 -099. Appropriating $166,000 From The General Fund To The Electric
Enterprise Fund As An Extra Payment Toward An Outstanding Loan Between The Funds.
Resolution 2011 -100, Adopting An Alternative Allocation Method For The FY 2012 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 2011 -101, Authorizing The City Manager To Accept The FY2012 Clg Grant For
The "Seward Historic Preservation Commission Training And Education" From The State Of
Alaska Historic Preservation Office To Allow Commissioners To Travel To Spokane,
Washington And Norfolk, Virginia For Preservation Education, Utilizing $23,662.84,
Including The $14,197.70 Federal Share And $9,465.14 Applicant Share In The Form Of Cash
Donations And In -Kind Services.
Resolution 2011 -102. Appropriating $6,783.42 For Expenditures Related To The 2011 City eri
Manager Hire.
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November 14, 2011 Volume 38, Page710
The October 10, 2011 City Council Regular Meeting Minutes Were Approved.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
Miles Knotek was congratulated as State Cross Country Champion.
A plaque was presented to Steven Heinrich in recognition for service on the Planning
and Zoning Commission
Borough Assembly Report, Sue McClure stated she attended AML in Fairbanks last week.
It was cold. Five other assembly members joined her. She attended a lot of sessions, learned a great
deal, and renewed acquaintances with other elected officials. One of the sessions she attended was
on emergency preparedness. McClure stated she wanted pet evacuation procedures incorporated into
the borough's emergency plan. She was on a working group with the borough to come up with the
plan for pet evacuations and was teleconferencing into these meetings. It stemmed from a federal
mandate issued after Hurricane Katrina. She noted there was some talk of moving one of the Seward
seats to an at large seat on the Seward Bear Creek Flood Service Area Board and if the designation
changed the population projections. She encouraged people to apply for these seats.
r.• McClure stated there would be only one Assembly meeting in November and only one Assembly
meeting in December. The next meeting was December 6, 2011 and an important part was
addressing an ordinance to accept cruise ship passenger tax proceedings from the last two years.
They share these funds also with Homer, as they were a port of call. She stated there was
approximately $761,705 likely coming to Seward. New Mayor Navarre appointed Paul Ostrander as
his Chief of Staff. She reminded the public to use borough resources — please refer to the borough
website, the Seward Annex Office in the Seaview Plaza and the flood board office also in the
Seaview Plaza.
City Manager's Report, City Manager Jim Hunt stated there were no purchases approved
by the City Manager for between $10,000- 50,000 since the last Council Meeting. In the Finance
Department, the Small Business Development Center had offered a potential win/win solution to the
City, related to the economic development position partnership that was previously proposed for the
City. Specifically, the SBDC offered to hire a full -time person who would work out of their
Anchorage office but who would be the designated business advisor for Seward. This individual
would travel quarterly to Seward for 2 -3 days per trip, and would work to develop new businesses in
Seward, to assist with small business loans, financial planning, etc. In exchange, they ask for an
annual payment of $12,500 from the City.
In the Harbor and SMIC, several customer meetings had taken place since the new
Harbormaster came onboard. The City sold one sailboat to a local buyer and collected on one
delinquent account. Cathodic protection (zines) had been installed at Polar Seafoods at SMIC.
Three harbor employees completed OSHA safety training, and Harbormaster Funk attended a Coast
City of Seward, Alaska City Council Minutes
November 14, 2011 Volume 38, Page711
Guard Area Security Meeting. Two boats came loose in the November windstorm. The Harbor staff
contacted the vessel owners. There was no damage reported to the vessels. An ,
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application checklist was submitted for Alaska Clean Harbor designation. An opposition motion was
filed by the City Attorney to Resurrection Bay Conservation Alliance's claim for fees.
In Public Works, Pacific Pile and Marine, LP was awarded the construction contract for the
SMC Dolphin Project, including all additive alternates with the exception of dredging, for a total
price of $1,494,000.00 on October 10, 2011. A signed contract from Pacific Pile and Marine was
signed and a purchase order not -to- exceed $1,494,000 issued. Work was expected to start this
season and would be finished no later than June 1, 2012. The City would be issuing a PO for
construction management within the next couple of weeks. The GIS system at Public Works was set
up. Staff was working on updating and adding new data and would complete the GIS system setup
for mobile units on November 22, 2011. Water and Wastewater departments were working to finish
pending items for the Lowell Point Waste Water Treatment Plant permit renewal requirements. The
Street and Shop Department were focused mainly on snow removal, sanding and mitigating other
hazards caused by adverse weather conditions. They also mitigated hazards caused by rockslides on
Lowell Point Road.
In Parks and Recreation, Community Schools programs continued, Park Maintenance and
Campgrounds continued ongoing maintenance, Sports and Recreation had many league and seasonal
events, the TYC had events coming up like Eat Dessert First, Tri- Fun -A -Thon, and Middle School
Madness.
Mayoral Report, David Seaward stated October 31, 2011 he congratulated Mike Narvarre
on his successful election as Borough Mayor. He attended Newly Elected Officials training in
Fairbanks November 7 and 8, 2011. On November 10, 2011, Seaward spoke in Anchorage at the 21
candle light vigil hosted by Covenant House in Anchorage. He thanked everyone for contacting him
for their suggestions on keeping government transparent.
Other Reports, Announcements and Presentations
An update was given by Kevin Smith, Executive Director of the Alaska Municipal
League /Joint Insurance Association (AML /JIA).
PUBLIC HEARINGS
Resolution 2011 -085 through 2011 -095, Adoption Of Fiscal Years 2012 and 2013 City Budget,
Consisting Of General Funds, Enterprise Funds, Motor Pool Fund, Debt Service Funds And
The Capital Budget. Notice of the public hearing being posted and published as required by law
was noted and the public hearing was opened.
Mark Kulstad spoke to the council on the proposed budget. He asked what the goal was for
the budget process. He felt the way it was proposed was for the City Government to get a bigger
piece of the pie. turi
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Mary Kulstad also spoke on the budget. She asked that the budget be set aside or something
%r.* be done for more work sessions for the new mayor and city manager to be a part of it. She had a
financial report that was lengthy and hard to understand. She handed out her comments with
questions on where the profits went in the city.
Tom Tougas handed out the economic development assessment but noted nothing had been
done with it. He said in the 1990's, the population was growing consistently. Since 2000, the
population had been on a consistent decline. Since then, the focus had been "we want a bigger piece
of the pie." Tougas encouraged investment and innovation. Right now Seward had degenerated to
fighting over a shrinking piece of the pie. The budget process discouraged innovation and
investment. The town was dead right now. This budget was a continuation of a decade of decline.
Tougas said council should pass this budget on an interim basis. They needed a new planning
process.
The Public Hearing Was Closed.
Shafer said this was a painful budget process. The city at the beginning was asking for three
to four times as much in increases. She voted against the electric increase, but it passed regardless
and she had to support it now. Council spent a lot of time on this. If they didn't pass the budget by
the first meeting in December, administration's recommended /preliminary budget went into effect.
If they passed the budget, council can always amend it later. She had no problem having more work
sessions and more input, but right now they were in a time crunch. This was the only way she could
irm
see this working for all needs out there.
By unanimous consent, council suspended the rules to poll the audience to see if they would
want to wait for a work session after November 28, 2011 with the assumption that the approval
of the budget resolutions would go on the December 12, 2011 meeting. Council scheduled a
work session for December 5, 2011 at 7:00 p.m. at a location to be determined.
Discussion ensued about PERS and employees' liability. Erchinger explained what the city
reserves actually consisted of.
Resolution 2011 -096 Amending The City Parking Fees Schedule For City Owned Parking
Lots, Setting Daily Parking Fees, And Seasonal Permit Passes Rates Effective May 1, 2012.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Tom Tougas asked about the rates before the council. The challenge they had with the
current process was the information used was a guess. Because the budget was indexed off of
assumptions and not off of actuals. He asked for actuals for 2011 parking information.
The Public Hearing Was Closed.
Motion (Shafer /Bardarson) Approve Resolution 2011 -096
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November 14, 2011 Volume 38, Page713
Casagranda asked for the reason for the increase. Erchinger said the prices were the same,
but permit fees would increase for sealing, striping, and patching. The slip holder passes and harbor
area employee passes were not intended to change. The only recommended change was vehicles
with trailer passed and visitors passes.
Shafer asked which was the last parking lot that was sealed and striped. Parks and
Recreation Director Karin Sturdy stated they striped their parking lots each year, but did not
professionally strip or patch them. Shafer asked if they intended to seal this year, and Sturdy said
they had it budgeted to seal this year for the center parking lot as the priority, the north parking lot as
the second priority, then the south lot, then the employee parking lot, and then the north east parking
lot. Staff was hoping for a lower bid when they bid it earlier this year, and it just depended on the
price. They exceeded their revenue budget for 2011.
Valdatta said he didn't see any heartburn with these increases. Sturdy felt it was fair and that
it was an appropriate cost.
In response to Seaward, Sturdy said seasonal passes for harbor area employees were
provided.
Motion Passed Unanimous
Resolution 2011 -097 Entering Into An Additional Nine Month Lease Extension With The
United States Coast Guard To Accommodate Their Relocation To A New Location. 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 (Shafer /Terry) Approve Resolution 2011 -097
Motion Passed Unanimous
Resolution 2011 -098 Entering Into An Additional Five Year Lease With Chugach Regional
Resources Commission For The Operation Of The Alutiiq Pride Shellfish Hatchery. Notice of
the public hearing being posted and published as required by law was noted and the public hearing
was opened.
Motion (Terry /Shafer) Approve Resolution 2011 -082
Mark Kulstad asked when he was looking through the budget, he looked at the possibility of
evaluating the city's leases and that it was something to consider. There were some static lease
numbers. Perhaps council should look into evaluating leases as well when they looked at the budget.
The Public Hearing Was Closed.
Motion Passed Unanimous
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November 14, 2011 Volume 38, Page714
NEW BUSINESS
Ordinance 2011 -006, Revising Seward City Code 5.45.015 (Hotel /Motel Room Tax — Levy Of
Tax), Eliminating All Exemptions From The Hotel/Motel Room Tax Effective January 1, 2012.
Motion (Bardarson /Shafer) Introduce Ordinance 2011 -006
Shafer asked Erchinger to speak on this ordinance and how much funds this would be
expected to generate and who it would affect. Finance Director Kris Erchinger said this was one
of the items spoken on during the budget hearings. Seward had a large portion of non taxable
properties. It had been an area of interest by the council to seek ways to have the non profits to
contribute. This removal would treat non profit entities in any way else that someone would be
renting a hotel room. They would not be able to charge the federal or state government if they had
the appropriate exempt cards, though. The city would work on defining that fully for businesses.
The Army Rec Camp was legally bound by this tax. They could not compel the federal government
to pay tax, though, which made it difficult to ask. There were opportunities available, though. The
magnitude of what to expect in revenues was difficult to determine.
Motion Passed Unanimous
Resolution 2011 -103, Authorizing Amendment No. 2 For $102,158 The Construction Contract
With PCL Construction Services Inc. For Additive Alternate #4, A More Durable Stone Siding
Option For The Seward Library Museum Project, And Establishing A $100,000 Project
Contingency, And Appropriating Funds.
Motion (Bardarson /Shafer) Approve Resolution 2011 -103
By unanimous consent, council suspended the rules to allow Rise Alaska Project Manager
Kent Crandall to speak. The stone siding was part of the original project design, but cut to reduce
the price. What was substituted was cement board, or party board, as a fairly durable material but
could break on impact and would need painting often.
Terry asked if anyone on city staff was identified to manage this project. Hunt was unaware.
Terry asked Crandall who was going to ensure if there were conflicts between plans to make sure
change orders would cease. Crandall couldn't guarantee there wouldn't be any more change orders,
but they did know some amount of change orders would come up. This contingency would allow for
more change orders if they arose and staff would not have to come forward to council with change
orders. Valdatta asked if the price of the siding was locked in if this resolution gets approved.
Terry also asked Crandall that the change order included alternate number 4 included metal
studs being changed was $15,800. Crandall stated the supporting documents in the council packet
included this information.
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Erchinger stated Building Inspector Stefan Nilsson was the on ground project manager and
Erchinger helped with the financial aspect for Michelle Weston while she was away.
Motion Passed Unanimous
OTHER NEW BUSINESS
Discussion and direction on special contracts for electric rates. John Foutz stated he was
seeking direction as far as what council would like staff to do with the special electric rate contracts.
At the last budget session in 2009, the industrial rate was abolished and replaced with special
contracts. Council directed staff to increase special rates to 10% the first year and 5% the second
year. This patterned the electric rate increases they voted on earlier when the approved the electric
tariff.
Discussed adding the Jesse Lee Home to a Legislative Priority List. Shafer said she would like to
have information from the Friends of the Jesse Lee Home, including a letter from the superintendent
of schools or the borough in support of this project and a letter from the high school supporting the
project. The Friends of the Jesse Lee Home had worked very hard for about 8 years now. She had
yet to see anything from CIRI on their contribution or any other groups other than what they received
from the state. Shafer stated she would like to see other supporting documentation from other
agencies and school districts first.
1
Valdatta said this should go as a state priority and put in on the marine section of the list.
Shafer said state lobbyist Kent Dawson cautioned council to put this on the state priority list. She
didn't mind if it was a city priority.
Bardarson said she called Dawson today and he suggested if anything put under beneficial
legislation under support of the statewide charter leadership school.
Motion (Seaward/Valdatta) Direct staff to bring forward a resolution
amending the state legislative priority list at
the December 12, 2011 meeting under
consent agenda with the following addition:
$11 million capital request for Friends of
the Jesse Lee Home /Balto School. This
project will also remain on the city
legislative priority list when it comes before
council for approval.
Bardarson said she would not want to put a dollar figure to this project. There was only so
much money in Juneau, and the Coastal Village project was one they want to move forward, and she
did not want to jeopardize that funding in any way. Each location in the state gets a certain amount
of money, and she would not vote for that with the dollar amount on the state priority list.
Shafer thought this should be on the city priority list, but not on the state list. Anything they
City of Seward, Alaska City Council Minuses
November 14, 2011 Volume 38, Page716
put on the state list competed with Coastal Villages and right now Coastal Villages was their top
priority.
Casagranda thought perhaps Valdatta was suggesting the council should put this project on
the federal priority list. Valdatta said there was federal money corning to the state, and that money
should be earmarked.
Seaward expressed his support for the Jesse Lee Horne Leadership Program. Bardarson
supported the school as well; she didn't want to jeopardize the amount of state funding that would go
to Seward.
Motion to Amend (Shafer /Bardarson) Amend the motion on the floor by
removing the dollar amount and put it only
on the city priority list, under Beneficial
Legislation as "Support of the Friends of
the Jesse Lee Home."
Motion to Amend (Seaward /Terry) Secondary amendment to the amendment
and main motion on the floor, including
adding "Support of the Friends of the Jesse
Lee Home" under Beneficial Legislation to
the city and state legislative priority lists.
Motion to Secondary Amendment Passed Yes: Terry, Casagranda, Valdatta,
Seaward
No: Bardarson, Shafer
Motion to Primary Amendment Passed Yes: Casagranda, Bardarson, Valdatta,
Terry, Seaward
No: Shafer
Motion to Amend (Casagranda /Bardarson) Amend the main motion on the floor, to
have the new city and amending state
legislative priority resolutions come
forward at the November 28, 2011 meeting,
instead of December 12, 2011.
Motion to Amend Passed Yes: Casagranda, Valdatta, Terry,
Bardarson, Seaward
No: Shafer
Motion to Amend (Terry /Bardarson) Bring forward these resolutions on the
regular agenda, rather than the consent
agenda.
City of Seward, Alaska City Council Minutes
November 14, 2011 Volume 38, Page71
Motion to Amend Passed Unanimous
Terry stated her support to bring this forward at the next council meeting. She thought maybe
the Friends of the Jesse Lee Home and the public perhaps felt this was not adequately addressed, so
this would be appropriate to have it come before council to have a discussion.
Main Motion Passed (as amended) Yes: Terry, Valdatta, Bardarson,
Casagranda, Seaward
No: Shafer
INFORMATIONAL ITEMS AND REPORTS (No action required)
Letter, from City of Obihiro.
Accounts receivable write - offfor Harbor vessel "Gipsy ".
Status update for the All Hazard Mitigation Plan, Annual Report to the National Flood Insurance
Program Community Rating System.
COUNCILS' COMMENTS
Bardarson said good work to staff on negotiating the rate on the vessel Gypsy. The AML
conference was productive and she went to quite a few seminars. They all were great and she talked
with other communities and their challenges. Bardarson thanked the Seward Art Council for all that
they do.
Shafer this year they were kicking off the holiday season with lighting the Christmas Tree,
carolers, the Alaska Sealife Center community Christmas party was that night, and there were many
other events happening downtown. She hopes everyone puts this one their calendar for December 1
at 5:30
Valdatta said regarding the All Hazard Mitigation Plan: he did not see anything across the
bay to alleviate the erosion problem. Harbormaster Funk said he was aware of the erosion at the old
cell phone tower, and he would look into the mitigation plan, but rest assured they were aware of the
issue. Valdatta said Happy Holidays and to drive safe.
Terry thanked the Christian Youth Organization Young Life who held their conference in
Seward last weekend. Seward was listed in USA Today as one of the ten places to enjoy the "simple
life." The Chamber was hosting a reception for the new mayor and city manager tomorrow. The
Senior Center Open House was Friday, November 18, 2011. She thanked Steven Heinrich for his
service on the Planning and Zoning Commission. Terry asked citizen's to please be a part of this
commission. She requested a discussion on changing the public comment limits from 2 to 3 minutes
be on the November 28, 2011 agenda instead of the December 12, 2011 as previously planned.
Seaward said Happy Thanksgiving and thanked everyone for their service.
City of Seward, Alaska City Council Minuses
November 14, 2011 Volume 38, Page718
bow Hunt announced he made an offer for the Assistant City Manager position to Seward resident
Ron Long. Long agreed to take the position and he felt he would be a valuable addition to city
projects.
CITIZENS' COMMENTS
Ron Long stated he would be attending the Fish Expo with the Harbormaster and the
Chamber Director. There would be good opportunity to interface with the Coastal Village Project
players as well as long standing harbor customers.
Mary Kulstad announced the Chamber was hosting the party for the City Manager, the
Mayor and the new Harbormaster between 5:00 — 7:00 p.m. tomorrow and encouraged those to
attend. She thanked the council for their work on the budget and thanked them for the work session
they scheduled this evening.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
Valdatta congratulated Ron Long. He was excited that Long's experience with lobbying
would come into play.
ADJOURNMENT
6.1
The meeting was adjourned at 10:02 p.m.
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