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HomeMy WebLinkAbout12122011 City Council Minutes(2) City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 730 CALL TO ORDER law The December 12, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Councilmember Bob Valdatta 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 Marianna Keil comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Absent — None CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Mrs. Clause (Teen and Youth Center Coordinator Josie Ronnie) promoted Parks and Recreation's Breakfast with Santa this Saturday, December 17, 2011. Breakfast would be served and One Shot Photography would take pictures with Santa. Ronnie and her "elves" (TYC attendants) handed out cookies to the City Council and the public. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil /Shafer) Approval of Agenda and Consent Agenda Schedule a work session in January to review city services was added to the agenda under "Other New Business Items" by Councilmember Terry. Resolution 2011 -095 was pulled from the Consent Agenda. Council pulled Recognizing Ron Long for his PACAB Service from the agenda as he was not r.w present this evening. r City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 731 Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2011 -087, Adopting The Seward Marine Industrial Center Enterprise Fund Budget For Calendar Years 2012 And 2013. Resolution 2011 -089, Adopting The Parking Enterprise Fund Budget For Calendar Years 2012 And 2013. Resolution 2011 -090, Adopting The Hospital Debt Service Fund Budget For Calendar Years 2012 And 2013. Resolution 2011 -091, Adopting The Seward Mountain Haven Debt Service Fund Budget For Calendar Years 2012 And 2013. Resolution 2011 -093, Adopting The Motor Pool Internal Service Fund Biennial Budget For Calendar Years 2012 And 2013. Resolution 2011 -112, Accepting A State Of Alaska Homeland Security Grant In The Amount Of $30,000, And Authorizing A Sole Source Contract With Priority Dispatch, Corp. To Expand And Install Emergency Medical Dispatch Software In Police Dispatch, And Appropriating Funds. The November 14, 2011 and the November 28, 2011 City Council Regular Meeting Minutes and the November 2, 2011 Special City Council Meeting Minutes were approved. The December 27, 2011 Regular City Council Meeting was cancelled. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Melody Moline was recognized on her award from the State Harbormaster Association. Borough Assembly Report, Sue McClure welcomed the Seward High School government class in attendance tonight. She made the offer to come to the schools to educate the youth on borough government. McClure reported the Assembly had the same representatives as last year, including the leadership and committee chairs. They met last Tuesday for their only December meeting. The Assembly heard the school district's quarterly report, which reported enrollment was down and the Spring Creek High School in Seward was being moved to Anchorage due to loss of students. The district was looking at a $4 million dollar shortfall. The allocation of the cruise ship head tax was postponed at mayor's request until the January 17, 2012 meeting to allow the mayor to be present. McClure stated the allocation was about $700,000 to Seward and this was for the 2009 - rr1 2010 period. She stated this was also held back due to questions about whether recipients could be City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 732 other than port communities. The Assembly approved community revenue sharing allocations for unincorporated communities, which was approximately $19,000 each for community - related services like emergency services. McClure anticipated another allocation giving $66,733 to each of the communities coming up. An ordinance for public hearing which was for swapping about .56 acres of borough land for city land south of Sealion Drive to make things better for the generator utility /sidewalk area was on the agenda for the borough planning commission tonight. If approved, it would go to January 3, 2012 Assembly meeting. McClure encouraged a City of Seward presence at the Seward Bear Creek Flood Service Area Board meetings. The board meetings would coincide with council meetings, but just for the month of January. McClure reminded public of the borough annex office and the flood board office both in the Seaview Plaza in Seward, and she was available via email and phone for any questions or comments. In response to Terry, McClure thought the mayor's take on the cruise ship head tax funds was to make the new wording clearer that the tax was intended for the port cities of Homer and Seward. 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 Harbor, personnel assisted with preparing the Coastal Villages submittal to Juneau. A telephone meeting with feasibility study consultants, Northern Economics, took place. The department was receiving moorage contract renewals and they solicited compliance letters from all cargo vessel owners in order to comply with Coast Guard Security requirements. They were also working on license agreement renewals with Shoreside Petroleum and Seward Fisheries. In Community Development, the Seward Bear Creek Flood Service Area received $30,000 to be used for an in -City project. Three (3) possibilities mentioned were Scheffler Creek, Lowell Canyon tunnel, or Fourth of July dike. Administration was leaning towards Fourth of July dike for the Coastal Villages (CVRF) connection. Scope would be an assessment of maintenance or rehab needed short term to stabilize the structure. The Planning Commission members received numerous positive comments regarding the windstorm outage response by City crews. In Parks and Recreation, TYC continued their afterschool program and Teen Time. The holiday events like "Eat Dessert First" and the Christmas Carnival were successful and preparations were underway for Breakfast with Santa, upcoming day camps, and New Year's celebrations. Community Schools had classes including ceramics and an Anchorage van trip with TRAILS. Parks Maintenance & Campgrounds removed hazard trees in Forest Acres Park and on Two Lakes Trail. Crews worked on routine winter snow removal and sanding, picnic table repair, campground sign repair and painting, and Christmas light installations. In Sports & Recreation, staff was preparing for upcoming events like the Urbach's youth basketball Jamboree and the Wells Fargo Invitational Basketball tourney. Terry requested for a written report at the next meeting on the library museum project status /update and asked for the status of the Electric Department's interconnect policy. Electric Utility Manager John Foutz said an amendment to the contract with Chugach Electric would have to come forward, and they were preparing to submit that to the Regulatory Commission. This would give the Electric Department permission to purchase power from sources other than Chugach City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 733 Electric, such as AVTEC. In response to Bardarson, Foutz responded the fuel costs of running the generators were absorbed by the customers and it depended by the event. Shafer requested staff put notice out to the community if the generators were going to be running for more than a day to have the community to limit their usage. City Attorney's Report, Cheryl Brooking was unable to attend the meeting due to poor road conditions. Mayoral Report, Mayor David Seaward stated he got a congratulatory letter from Senator Lisa Murkowski. UNFINISHED BUSINESS Ordinance for Enactment (postponed from the November 28, 2011 Meeting) Ordinance 2011 -006, Revising Seward City code Section 5.45.015 (Hotel /Motel Room Tax — Levy Of Tax), Eliminating All Exemptions From The Hotel /Motel Room Tax, Effective January 1, 2012. (Terry /Keil) —from 11/28 Motion (Terry /Keil) Enact Ordinance 2011 -006 (motion made at the November 28, 2011 meeting) Keil /Bardarson Amend Ordinance 2011-006, adopting Motion to Amend ( ) p g the awl suggested amendment by the City's attorney, which was adding the following: "(b) Rent paid by the United States of the State is exempt from the tax levied by subsection (a) of this section insofar as the United States and the State are immune from taxation." Keil said she questioned this change initially, but found the reason she was taxed when traveling on State business was because she used her personal credit card, not a State of Alaska credit card, and that action was not exempt. Motion to Amend Passed Unanimous Seaward felt non - profits were vital to the community. Casagranda wanted to know if this would result in a written policy. Keil hoped so and that finance would educate the public on it. Main Motion Passed Unanimous ..J Other New Business Items (postponed from the November 28, 2011 Meeting) City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 734 Discussed and gave direction on filing an objection to the liquor license renewal wal for Thorn's Showcase Lounge. City Clerk Johanna Kinney reported that since the November 28, 2011 meeting, the business was able to correct the violations that initially prohibited the Fire Department to give compliance. The Fire Department was now able to give compliance. Kinney recommended council make a motion for non - objection for this liquor license renewal. Motion (Keil /Bardarson) Non - objection for the liquor license renewal for Thorn's Showcase Lounge. Motion Passed By Unanimous Consent NEW BUSINESS Resolution 2011 -085, Adopting The Water Enterprise Fund Biennial Budget For Calendar Years 2012 And 2013. Motion (Keil/Bardarson) Approve Resolution 2011 -085 Terry noted the increase in insurance rates in personnel. The increases would be reflected in 5 these resolutions now. Finance Director Kris Erchinger noted administration was notified of this increase between the last work session on the budget and getting this document together for tonight's meeting. The insurance company had sent the email to former employee, Michelle Weston, which went unchecked. Once aware, the council was made aware of the increase. The 9.7% increase was higher than what was optimistically budgeted for. The General Fund, and the Electric, Harbor, Water, and Sewer Enterprise Funds had been changed to include these health insurance rates. That was the only budgeted item not discussed publicly as the change had been so new. In response to Seaward, Erchinger said the city paid for 6.7% of the premium, so the employees would also be getting an increase as well, about $18 a month. Once the council approved the budget, employees would be notified and picking up the increase as well. Motion Passed Unanimous Resolution 2011 -086, Adopting The Wastewater Enterprise Fund Biennial Budget For Calendar Years 2012 And 2013. Motion (Bardarson /Shafer) Approve Resolution 2011 -086 Motion Passed Unanimous Resolution 2011 -088, Adopting The Small Boat Harbor Enterprise Fund Biennial Budget For Calendar Years 2012 And 2013. City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 735 Motion (Terry /Bardarson) Approve Resolution 2011 -088 ilj Motion Passed Unanimous Resolution 2011 -092 Adopting The Electric Enterprise Fund Biennial Budget For Calendar Years 2012 And 2013. Motion (Bardarson/Terry) Approve Resolution 2011 -092 Erchinger distributed a handout that went out to the council to address a discussion item at the last work session. This handout further clarified the rate increases over the years, when there were rate increases, when there were decreases, when the costs were passed on to the residents, and when they were not passed on to the residents. She stated the Chugach rate increase over time increased 33.33% from 2000. Comparing that of what was passed on to the customers, it was about 2.08 %. The operating costs only increased 16% excluding fuel, and the CPI rose 26 %. Terry said the now approved automatic CPI increases, she hoped the city would continue to be cognizant of the increases and not go too far the other way. Shafer said out of all the funds, this one gave her the most heartburn. Everyone used electricity, and it affected businesses and customers. In really thinking about this, the outages on June 27, 2011 were firmly etched in her mind when four generators were broken and the city was ,,,, helpless and lost thousands of dollars in revenue. Their infrastructure needed replacement and they needed to prevent this from happening again. Shafer felt they truly needed it, but it was with a heavy heart she would be voting for this. Motion to Amend (Casagranda/Terry) Reinstate the $175,000 contribution to the Motor Pool Fund from the Electric Enterprise Fund in 2012. Casagranda said they just passed a 10% increase. One of the directions in this budget process was to eliminate the motor pool contribution from the Electric Department. The 10% increase was to repair infrastructure, so she felt the contribution could go back to the Motor Pool. Erchinger stated the budget had been amended and the $175,000 that the Electric Department was originally going to contribute to the Motor Pool Fund was kept in the Electric Department's budget for the specific purpose of repairing the transformers as a number one priority. Motion to Amend Failed Yes: Casagranda No: Bardarson, Terry, Keil, Valdatta, Shafer, Seaward Main Motion Passed C i t y o f Seward, Alaska C i t y Council Minutes December 12, 2011 volume 38, Page 736 Resolution 2011 -094, Adopting The City General Fund Biennial Operating Budget For Calendar Years 2012 And 2013 And Setting The Mill Rate. Motion (Bardarson /Shafer) Approve Resolution 2011 -094 In response to Terry, Erchinger stated to balance the budget, each time the city increased sales tax, they increased property tax to balance with the transfers out. There was some room for possible for wiggle room in property tax projections. Rather than using the sales tax account, she used the property tax projections. Keil clarified the city was not raising the property tax; it was an increase in projections. Seaward asked if the $25,000 contribution for the Boys and Girls Club was still in the budget. Erchinger confirmed that it was, and was listed under contributions. Motion to Amend (Seaward) Amend Resolution 2011 -094, to re- allocate the $25,000 contribution from the Boys and Girls Club to the Seward Community Foundation as a general non - profit grant. Motion died for lack of second Seaward felt the city should raise the employees' deductible or try to see if they could lower the costs to the general fund so the employees pay more. Motion Passed Unanimous Resolution 2011 -095, Adopting The 2012/2013 Capital Improvement Plan. Motion (Bardarson /Shafer) Approve Resolution 2011 -095 Terry said she pulled this from consent agenda because all these items were outlined in budget work sessions, but she wasn't sure if refurbishing the Lowell Canyon Tanks should still be on the Capital Improvement Plan. Motion to Amend (Terry /Casagranda) Amend Resolution 2011 -095, striking the line item "Refurbish Lowell Canyon Tanks" from the Water - Related Capital Projects Public Works Technician Carmen Hewitt stated the Lowell Canyon water tanks needed to be refurbished or replaced. Staff was hopeful they would not need the loan for the North Water storage tank, but the Lowell Canyon tanks needed repair, and that it was an issue of pressure and chlorine content. During the high tourist season, it was a huge demand on the system. Jr. City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 737 Motion to Amend Failed Yes: Terry No: Keil, Bardarson, Valdatta, Casagranda, Shafer, Seaward Motion to Postpone (Casagranda) Postpone Resolution 2011 -095 Motion died, for lack of second Terry wanted this to have a larger community -based discussion in the future on this topic. Motion Passed Unanimous Resolution 2011 -110 Approving Amendment No. 23 To The Contract With Kent Dawson Company, Inc. For State Lobbying Services Through December 31, 2013 For A Total Of $77,000 With An Additional $12,000 Annually From The Seward Association For The Advancement Of Marine Science For Lobbying On Behalf Of Its Lease And Operation Of The Alaska Sealife Center For A Total Of $89,000 Annually. Motion (Bardarson/Keil) Approve Resolution 2011 -110 Hunt stated administration wholeheartedly supported this resolution. Motion Passed Unanimous Resolution 2011 -111 Approving Amendment No. 15 To The Contract With Hoffman, Silver, Gilman And Blasco, A Professional Corporation, To Extend The Term For Federal Lobbying Representation Through December 31, 2013 For A Total Of $84,699.96 Annually. Motion (Keil /Terry) Approve Resolution 2011 -111 Hunt also endorsed this contract before council. Motion Passed Unanimous Resolution 2011 -113 Stating An Intent To Fund $2,308,000 For The North Seward Water Storage Tank & Pumping Facility Phase II Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Drinking Water Fund And Authorizing The City Manager To Accept A Loan Offer From The Alaska Drinking Water Fund With Payments Subject To Bi- Annual Appropriation. Motion (Keil /Shafer) Approve Resolution 2011 -113 Motion Passed Unanimous trirl City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 738 itour Resolution 2011 -114, Authorizing The City Manager To Purchase A Specific Full Size Truck Outright In The Amount Of $42,360 Rather Than Purchase In The 2012 Motor Pool Budget For $80,000. Motion (Bardarson /Casagranda) Approve Resolution 2011 -114 Foutz explained this truck was budgeted in the 2012 -2013 motor pool budget. In preparation for that, they starting shopping for it, and found an end of the year sale for a truck adequate for the department's needs. Because of the timing, it had to be brought forward to council tonight. It was almost 50% less than the budgeted amount. The last truck they had was approximately $80,000. The transmission was going to go out on the current truck in the near future. The other issue was that it was only produced by the manufacturer for one year and then taken off line so repairs were challenging. It took a lot of time to get the pieces to Seward to make repairs and then the repairs also took time. When the current vehicle was broken, the department was looking at a month or more of downtime. It was a primary vehicle that the crew used, intended to patrol to mile 30, including going off road to the transmission line and underbelt. Hunt recommended approval. Casagranda said she couldn't support a six liter V8 extended cab vehicle that would be patrolling, and it should be more fuel efficient. It was the fuel cost and an environmental issue for her. Hunt said the use wasn't just for patrol, it had to haul equipment and it needed to be a heavy duty vehicle. Anything lighter wouldn't get the job done, but he appreciated Councilmember Casagranda's concern. Foutz said it was intended to pull trailers, backhoes, and other various m equipment, as well as being taken off road in extreme weather cases. Hunt said it carne down to torque and horsepower. Foutz said they had 4 trucks; all were extended cab and V8's. Bardarson asked if this truck had the bed it needed. Foutz said the utility boxes carne with the truck. The only additional element needed was an overhead rack for longer items like conduit or wire. Motion Passed Yes: Terry, Valdatta, Shafer, Bardarson No: Keil, Casagranda OTHER NEW BUSINESS Council scheduled a joint work session with the Planning and Zoning Commission on Title 15 Code Amendments for Tuesday, January 17, 2011 at 6:00 p.m. Terry requested information on these amendments to please be provided to council ahead of time. Council scheduled a work session to review city services on Thursday, January 19, 2011 at 7:00 p.m. INFORMATIONAL ITEMS AND REPORTS (No action required) October Providence Financial Report. In response to Casagranda, Erchinger stated she spoke with the hospital administration about scheduling a work session with council. They were ready when the City of Seward, Alaska City Council Minutes December 12, 2011 Volume 38, Page 739 council was ready. Shafer asked for a brief report at a council meeting and perhaps have a work session in February. Terry thought a presentation would be helpful for the public. COUNCIL COMMENTS Bardarson mentioned some of the downtown snowflake lights were out and she had heard they talked to the electric department to fix them. She wanted to know if there was anything they could do to make it look more festive downtown or plan for the next year. Foutz said the Electric Department was responsible for hanging the "twinkies" at Christmas time. Each year, they go through them and get them ready. This year, they found more than usual wiring issues. There were two alternatives. The department could rewire them, which takes about a full day for a lineman to rewire, which was costly and generally it didn't look as nice as a new one. The wiring may or may not look the same. The other alternative would be to purchase new "twinkies," which ran anywhere from $1500 to $3000 each, but he had not confirmed that. Bardarson said perhaps the city could look to AVTEC's electrical program to help; Foutz could check on that. Terry said another option would be to contract it out to private electricians that could do it for less. Shafer asked if there was an organization that could buy new decorations for the City. Bardarson wished everyone a Happy Holiday season. Keil said Happy Holidays, Merry Christmas, Happy New Year, and she would see everyone at the January work sessions. done. This was one of the most stressful ones. They Shafer said she was glad the budget was do y had tried to do their best for the community. She wished everyone a truly Merry Christmas and a Happy New Year. Terry announced the elementary school spelling bee was tomorrow. Thanks to Mr. Hinders' class for attending the meeting tonight. The 2" graders would be here next Wednesday to see City Hall. Terry said good job to the crews with the outage last night and kudos to the Public Works street crews. Seaward said Planning and Zoning had three empty seats. He noted zoning codes were costly and hoped they would change the codes responsibly. He wished everyone a Merry Christmas and Happy New Year. Hunt thanked the city crews, especially Electric and Public Works. He updated the council that administration submitted their final request for funds for Coastal Villages last week for the Governor's Budget. They were optimistically anticipating word from the governor soon. Casagranda said it was hot in here. CITIZENS' COMMENTS Tim McDonald commended Terry for standing up for the public to get more participation. What bothered him was regarding the priority lists and everything else, it seemed Seward had a City of Seward, Alaska December 12, 2011 City Council Minutes Volume 38, Page 740 patron /corporate /client relationship, asking for millions in funds from different corporate clients. McDonald said asking for money for huge corporations like the Alaska RailRoad, the hospital and very few things that affected citizens. It seemed the majority of the money was for these large entities and he didn't see much that contributed to the quality of life. Infrastructure for electric utility was valued at zero and asked where the money to upgrade this infrastructure was. It seemed the people of Seward were pushed aside. He felt there wasn't too much concern for the people of Seward and their quality of life. Funds and priorities were so skewed in favor of Seward's corporate clients. He gets frustrated that this town was co -opted by forces they had no control over and all they got in return was increases in rates. He would like to see a change in direction in this thinking. Terry had done a good job getting the public involved. Hilda Lespron wished the council a Merry Christmas and Happy New Year. She thanked them for all they did for Seward and all the time they put into this community. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Keil thanked Lespron for the compliment, it was nice to get one once in a while. She told her there was a spot open on Planning and Zoning and she would make a nice addition. Terry said there were key seats on the flood board also, so please consider those too. Casagranda said thank you Lespron and McDonald for their participation. ADJOURNMENT The meeting was adjourned at 9:03 p.m. j annaK,cMc David y Clerk Mayor (City Seal) le SEA • Aso 4.9 sttrke. #•.„' E � 9 O F R+ °1.4'