HomeMy WebLinkAbout06112012 City Council Minutes City of Seward, Alaska City Council Minutes
June 11, 2012 volume 38, Page 834
CALL TO ORDER
The June 11, 2012 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor David Seaward.
OPENING CEREMONY
Lieutenant Tiner led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
David Seaward presiding and
Jean Bardarson Christy Terry
Vanta Shafer Bob Valdatta*
Ristine Casagranda
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
*Valdatta arrived at 7:08 p.m.
Absent — Marianna Keil
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING — None
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Bardarson /Terry) Approval of Agenda and Consent Agenda
Motion to Amend (Bardarson /Shafer) Amend the May 14, 2012 City Council
Meeting Minutes, having the Vice Mayor's
Travel Report to read as: `Jean Bardarson
stated she traveled to Seattle and
Washington, D.C. During these travels, she
was pleased to learn that TOTE had
designated Seward as their official back -up
port."
Motion to Amend Passed Unanimous Consent
City of Seward, Alaska City Council Minutes
June 11, 2012 Volume 38, Page 835
Council pulled the Travel Report from Willard Dunham, Seward's Ambassador to the 2012 World
Expo in Yeosu, Korea. City Clerk Johanna Kinney announced this report would be scheduled at a witJ
future meeting.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approved the May 14, 2012 and the May 29, 2012 Regular City Council Meeting Minutes.
Appointed Linda Lasota to the Historic Preservation Commission with a term to expire May,
2015.
Non -Code Ordinance 2012 -006 Submitting A Proposition To The Qualified Voters At The
October 2, 2012 Regular Municipal Election To Establish Local Forms And Guidelines For
Financial Disclosure For Elected And Appointed Officials And Exempting Elected And
Appointed Officials And Exempting Elected And Appointed Officials From The State Of
Alaska Public Official Financial Disclosure Law (Alaska Statute 39.50). (Introduced and set for
public hearing and enactment on June 25, 2012)
Resolution 2012 -039 Accepting The 2012 Volunteer Fire Assistance (VFA) Grant In The
Amount Of $12,066.30 And Authorizing The 10% Matching Funds Of $1,206.63 And
Appropriating Funds.
Resolution 2012 -040 Authorizing A One Year Contract For $556,000.00 With The State Of
Alaska, Department Of Corrections, To Provide For Operating The Seward Community Jail
And Housing Prisoners Charged And /Or Sentenced Under Alaska State Statutes.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards
Certificates of Congratulations were given to Meg Berry and Jed Wilde as Athletes of
the Year.
Borough Assembly Report, Sue McClure stated the Assembly had two meetings since the
last time she spoke to council. Some accomplished items of business were appropriating funds to
pay for the medical costs for borough insured employees, as they were self - insured, and awarding a
contract for reroofing Seward High and Elementary Schools as well as lighting in the parking lots.
The budget passed with little controversy, which McClure thought was surprising. The mil rate
would be at the same rate of 4.50 mils. Appropriations were made for Central Peninsula Hospital for
radiation/oncology subleasing and the assembly approved an agreement to end a lawsuit over a
denied certificate of need for an ambulatory surgical center. The borough was still looking for city
residents to be on the Seward Bear Creek Flood Service Area Board. McClure reported at an
upcoming meeting they would be discussing whether or not to pursue making all seats on the board
at large seats, and she may be asking council for a support resolution on this in the near future.
City of Seward, Alaska City Council Minutes
June 11, 2012
Volume 38, Page 836
City Manager's Report, Jim Hunt stated there had been no expenditures approved by the
City Manager for between $10,000 and $50,000 since the last council meeting. The City Clerk's
Office announced the Social Security Office Representative would be here for the last time on June
21, 2012 in the City Council Chambers. Parks and Recreation continued to facilitate the ALPAR
litter patrol program, filling summer staff positions, and running campgrounds and summer camps.
The Electric Department had received a total of 57 outages /trouble calls since January 1, 2012, and
three since the last meeting. The number of new job orders started since the beginning of the year
was 17.
The Harbor staff was still working hard trying to get the new harbor software system
operational. On June 6, 2012, a new piling was installed at the end of finger float C 13/15 to replace
one that was broken in the disastrous November 2011 wind storm. The city expected that the cost of
the repair would be covered by the Federal Emergency Management Agency (FEMA). Thanks went
to Risk Manager Sarah Spanos, and Accounting Supervisor Kim Kowalski - Rogers for helping
prepare the claim. The harbor made a ramp to launch kayaks between X and Z floats along with
signage and allowance of 30 minutes of parking. The Request for Proposals for the design
engineering to replace D -Float had been approved by the grant agency. The city had $1.18 Million
of state matching grant funds for construction already approved, so they were ready to proceed ahead
with the design. Since the design funds were federal, the city was not allowed to include cost in their
evaluation. The RFP would be advertised and the evaluation criteria were:
Qualifications 50%
imp
Organizational Structure 25%
References 10%
Clarity 15%
In the Public Works Department, the SMC Dolphin project was complete with the exception
of testing the dry fire line. The punch list inspection would be performed June 10, 2012 by PND
Engineers and city staff. Quotes were solicited for double walled fuel tank replacement at
water /wastewater facilities. The draft of the Dairy Hill Drainage Improvements RFP was finished
for engineer and design permit support and construction support. The RFP was advertised June 6,
2012 and the scoring criteria for that RFP were:
Cost = 30 Points
Statement of Qualifications = 40 Points
Organizational Structure = 15 Points
References = 10 Points
Clarity of Proposal = 5 Points
Hunt announced he, Vice Mayor Bardarson, and Assistant City Manager Long would be
traveling to Anchorage on Wednesday to meet with Coastal Villages Representatives and hopefully
someone from the Governor's Office.
In response to council, Assistant City Manager Long stated the designs for the ties ups at
the Seward Marine Center dolphins were built to the design as specified by the university. Long said
even though the city funded it, it was pass - through money and not city money. Long would follow
up on the end date of the construction of the Coast Guard building. In response to Casagranda, Hunt
City of Seward, Alaska City Council Minutes
June I1, 2012 Volume 38, Page 837
stated it was the responsibility of the property owner to sweep their sidewalks. Bardarson asked for a
follow up on the state funding for street repair. Hunt at this point knew that the money was returned void
and DOT had the funds. The city could take the money but would be responsible for all the
administrative ground work. If the city erred in any way, the possibility of funds received could go
away and Hunt recommended not taking that risk. They were currently in the process of addressing
these concerns with the state and adding sidewalks to this project would delay it another year. Hunt
also noted he wanted to address problems with ADA accessibility to City Hall.
Mayoral Report, David Seaward stated the June 1, 2012 centennial incorporation gathering
at the library basement went well. He received a letter from the Governor congratulating Seward on
their centennial and read it to the audience.
Other Reports, Announcements and Presentations
A Cook Inlet Aquaculture Association Report was given by Tim McDonald.
By Unanimous Consent, the rules were suspended to present Jed Wilde his certificate of
congratulations on being awarded Seward Athlete of the Year.
Hawkins & Hawkins (architects) gave a presentation on the proposed Mount Alice
Harbor.
The State Department of Transportation gave a report on winter road conditions and somil
planned move.
Mikunda Cottrell & Co. gave a presentation on audit results for the year ended
December 31, 2011.
PUBLIC HEARINGS
Resolution 2012 -038, Authorizing The City Manager To Enter Into An Extension Of The
Ground Lease With Seward Ship's Drydock, Inc. For The Real Property Described As Lots 1-
A And 3, Block 7, Fourth Of July Creek Subdivision Seward Marine Industrial Center,
Seward Ship's Drydock Replat, According To Plat 2002 -22, Seward Recording District, Third
Judicial District, State Of Alaska. 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.
Deputy Harbormaster Norman Regis said they were ready to go and would answer any
questions. Hunt said this was in accordance with the ongoing lease for investments into this facility.
This was to extend the lease period and administration recommended approval.
Councilmember Shafer asked for a ruling on a possible conflict of interest as she took payment
for advertisement of the facility in the newspaper she owned and operated. Seaward did not
consider the conflict significant enough and ruled no conflict existed. No objection to this
ruling was made by council.
City of Seward, Alaska City Council Minutes
June 11, 2012 Volume 38, Page 838
iitry Motion (Bardarson /Shafer) Approve Resolution 2012 -038
Casagranda wanted clarification on this lease extension in regards for the upgrades. Regis
said Seward Ship's Drydock paid each year and if they did upgrades it went towards that amount.
Every five years the lease came up for review and renewal.
The rules were suspended by unanimous consent to allow owner /operator Jim Pruitt to speak.
Pruitt said they paid fair market value lease payments each year. These dollars were not going
towards any lease credits. It could be confused with the provision of the past lease with a list of
deferred maintenance and for doing so would obtain lease credits. They did that for two five year
periods and there were no more lease credits to obtain. This resolution was going to extend the lease
to 2040. Every five years the property was appraised. In response to Casagranda, Pruitt confirmed
they were paying fair market on the land. The city had provided the equipment and Seward Ship's
Drydock was operating and maintaining it. They still had to keep maintenance on it and get it
appraised each year by Lloyd's of London. In response to Seaward on the environmental compliance
matters, Pruitt stated DEC was reactive and they had calls -ins for some time with environmental
groups. They have not had any notification from DEC in over two years, however. Seaward asked if
there was an independent audit on the business. Hunt said the city was not responsible to do any
audits on a private business. Seaward expressed his desire to have all seven council members to be
here to vote on this issue.
Motion (Seaward /Casagranda) Postpone Resolution 2012 -038 to the July 9,
2012 meeting.
Terry spoke against this postponement as PACAB had stamped their approval on this issue.
Valdatta wanted to know if anything was at stake if this was delayed, Regis did not know of anything
pressing. Seaward said this lease was good until 2016, so he didn't think delaying it for a month
would matter.
Shafer was against postponing this as well. She felt they were ready to vote on it and had the
documentation to show this was ready for extension approval. Seaward thanked Pruitt for his work
and for creating over 50 jobs, but he would like to have the full council present to make this decision.
Terry said at the upcoming meeting with Coastal Villages it would look stronger to show this long
term lease was in place, showing they were a stable community. They had a quorum to vote tonight.
Bardarson agreed they should be presenting a stable community moving forward and was also ready
to vote on this issue.
Casagranda stated she would like the attorney to be present as well. Terry said if the
community had concerns, they would be here tonight. There was no community concern voiced
when this went to PACAB either. They should give this business every opportunity to be successful.
Seaward again reiterated postponing this resolution for a few weeks shouldn't cause any problems.
He would rather err on the side of caution. Bardarson clarified this was the ground lease not the
maintenance and operating agreement.
Motion to Postpone Failed Yes: Casagranda, Seaward
City of Seward, Alaska City Council Minutes
June 11, 2012 Volume 38, Page 839
No Valdatta, Shafer, Terry, Bardarson
usid
In response to Casagranda, Long stated there was a difference of opinion between repairs and
maintenance, and improvements. The past arbitration ruled for improvements. The fact that he
didn't submit the plan didn't take away from the value that they were completed. What this
resolution asked for was to recognize two of the four notices were done. Regis said Pruitt complied
with everything requested by DEC. Pruitt said again DEC was reactive and he felt they corrected the
problems with dust compliance. They had clauses and insurance requirements set by the city in their
lease that covered the city in every possible way.
Terry supported this resolution and reiterated PACAB also supported this. Renewing this
lease took the judgment of the improvements out of the city's hands because the arbitration
concluded they had done the improvements. This was important for businesses. Casagranda said
she wished she had more information such as the current lease and she felt this was a serious case.
She wanted the attorney to be present. Pruitt said council had passed the lease at a previous meeting.
This was confirming receipt of capital improvements that qualified for this extension to 2040. Pruitt
said now the improvements were done and this resolution approved an extension.
Motion Passed Yes: Valdatta, Casagranda, Terry,
Bardarson, Shafer
No: Seaward
UNFINISHED BUSINESS
Resolution 2012 -028, Accepting A Grant From Alaska Energy Authority To Upgrade And
Update Generation Facilities At Fort Raymond Generation Plant For $3,960,000 And
Appropriating Funds (Postponed From The May 14, 2012 City Council Meeting. Original Motion:
Bardarson/Shafer)
Motion (Bardarson /Shafer) Approve Resolution 2012 -028
(made at the May 14, 2012 meeting)
Casagranda asked where the first portion of funds for this project came from. Electric
Utility Manager John Foutz the first $2 million came from the state directly. Shafer asked if they
would see the design of the warehouse before construction began. Foutz said he planned to bring it
forward, and Hunt confirmed it would come to council for review.
Motion to Amend (Terry /Casagranda) Amend Resolution 2012 -028 by adding a
new third whereas, "Council intends the
warehouse proposed in the project be
designed as storage, dry room, and limited
to union offices."
Terry wanted to make it clear that this area was not for administrative offices but for some
minimal clerical work to be done. Council has made it clear they want the location of the Electric
City of Seward, Alaska
June 11, 2012 City Council Minutes
Volume 38, Page 840
Department to be centrally located for public convenience, and this would not be convenient if the
department was located out there.
Councilmember Terry offered an amendment to her amendment and was seconded by
Casagranda, but this motion was withdrawn and the main amendment was revised as stated.
Motion to Amend Passed Yes: Bardarson, Terry, Shafer, Casagranda
No: Valdatta, Seaward
Main Motion Passed As Amended Unanimous
INFORMATIONAL ITEMS AND REPORTS (No action required) — None
Letter of Congratulations for the City of Seward 's Centennial Anniversary from Governor Parnell.
COUNCIL COMMENTS
Bardarson thanked Obihiro and Kushiro for their trophies and Linda Lasota for re- applying
to the Historic Preservation Commission. She reminded the public the community needed people to
apply for the Seward Bear Creek Flood Service Area Board and the Planning and Zoning
Commission. She thanked John Bost for the audit results and his presentation tonight. Bardarson
also thanked the Incorporation Centennial Committee for their work.
Shafer congratulated Meg Berry and Jed Wilde for their accomplishments. She noted that
Pruitt was working with a glass recycling facility by using glass beads, but because the pressure was
so great to reduce the sand in the blasting, he no longer used this method and ultimately Alaska's
only glass recycling facility went out of business. She hoped council would have more forward
thinking on these kinds of things.
Valdatta said he was driving downtown and the climate had changed to show a big growth
period of vegetation. They needed to clean that up before it became problematic.
Terry was glad to see DOT tonight. Citizens should hold them accountable for their
promises. She encouraged citizens to check out Exit Glacier and promote our community.
Hunt said he found online sites such as Yahoo! a video story in Portland, Oregon on pieces
of dock from Japan coming on the shoreline with invasive species on it. The story noted Seward was
receiving "tons and tons of debris," so Hunt wrote the editor of the station to clarify Seward was fine
and the bay was pristine. The story was removed.
Long asked council to have a kind word for the Finance Department and all their work done
for this work session tonight in lieu of major obstacles and duress. They were very hard workers and
loyal.
Seaward thanked Martha Fleming, the public and Pruitt for his work in Seward. His
disagreement was with environmental compliance and he hoped to meet with him and clarify some
City of Seward, Alaska City Council Minutes
June 11, 2012 Volume 38, Page 841
issues. Seaward thanked Pruitt for his investment in the community.
CITIZENS' COMMENTS
Pruitt extended an invitation for council to come over and take a look at the facility. The
invitation was always on the floor. Also, they had a company picnic coming up in June and they
were welcome to attend. This was a slow period right now in the shipyard. They had a barge in their
yard currently having extensive repair work done. A Greenpeace vessel was coming in as well. He
thanked the council for their confidence and vote.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None
ADJOURNMENT
The meeting was adjourned at 9:20 p.m.
4 A ft-ei A _
1 anna Kinney, CMC Da id Seawar:
ty Clerk Mayor
(City Seal)
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SEAL
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