HomeMy WebLinkAbout07142014 City Council Minutes City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 349
CALL TO ORDER
The July 14, 2014 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Lt. Doreen Valadez led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and
Marianna Keil Ristine Casagranda
Christy Terry David Squires
Iris Darling
comprising a quorum of the Council; and
Ron Long, Acting City Manager
Johanna Kinney, City Clerk
Will Earnhart, City Attorney
1...
Absent—Dale Butts
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Laura Erickson, applicant of the Historic Preservation Commission, introduced herself to
the City Council. She adored Seward and was very interested in its history.About ten years ago,she
purchased a home in Seward.Erickson stated she would like to be on the commission to preserve the
history, to keep its character and to draw more people to Seward.
Melinda Maddox, of the Independent Living Center in Seward, thanked the city for their
efforts on the sidewalk and curb improvements and the ramp repairs outside City Hall. She asked the
city not stop here but continue with the transition plan to continue to fix the problems that existed.
The transition plan was something mandated by the federal government to ensure equal access. She
would be glad to assist with developing the plan. Maddox thanked them again for their efforts.
Brad Snowden gave the council an update on his downtown cruise ship dock idea. He stated
progress was being made and he was looking at potential locations to recommend. Snowden
requested each council member go down to the area to get a vision of the idea. Snowden made
comments regarding business and return on investment. He also noticed a bicycle rack in a place it shouldn't be. It wasn't bolted down and thought that was not the best practice for city bicycle racks.
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 350
Sue Lang of Lowell Point said this past weekend they had a stinking sewer pond and an
exceptionally bumpy road. She was glad they were working hard to resolve the issue at the Lowell
Point Sewage Lagoon, but the city should also look at the road conditions as well for the residents
and the visitors.
Tom Tougas spoke on the unfinished business on the agenda tonight. He was looking
forward to working with Larry Harmon, and Tougas noted he had a vested interest in this
proposition. He felt strongly that the reason SMIC hadn't been developed in the last 30 years was
because the city was insistent in maintaining ownership of all land. Larry Harmon had been in
Seward for many years,hiring locals and local subcontractors.If Harmon had the opportunity to own
his leased land in SMIC,he'd be able to invest more and develop it nicely. If the city wanted quality
development, they needed to allow people to purchase land rather than just lease it. Tougas hoped
council wouldn't wait for a master plan and allow this purchase process to go forward.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Terry) Approval of Agenda and Consent Agenda
The Other New Business agenda item, "Schedule a Work Session with the State Fire Marshal's
office regarding general deferment processes and State of Alaska 2012 International Building Code
Amendments on October 27, 2014 at 6:00 p.m." was taken off the consent agenda by Council
Member Squires.
me]
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the April 28, 2014 City Council Regular Meeting Minutes.
Appoint Laura Erickson to the Historic Preservation Commission with a term to expire May,
2017.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards—None
Borough Assembly Report,Sue McClure stated they have had some exciting times on the
assembly. They had met on June 17, 2014 and July 1, 2014 since her last report to the council. The
assembly passed an ordinance changing the code to require only a simple majority of the voters
instead of 60% to change the sales tax. They were addressing an ordinance to change borough
elections to be conducted by mail,as well eliminating the"pro"and"con"statements from the voter
brochure; and those two topics were split. The by mail voting question was addressed on July 1,
2014 and there was a lot of public input to not conduct elections by mail.Assembly Member Bagley
sponsored a resolution to have an advisory vote on this year's ballot on if elections should be by
mail, and that resolution failed. The ordinance was also defeated, but both items had motions to
reconsider filed so the assembly could potentially be revisiting this issue on July 22,2014. Another
ordinance the assembly was considering was passing a borough wide bed tax.This had received a lot
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 351
of mixed testimony. An amendment was passed to change the original intent of the ordinance
allocation from 75%to the Kenai Peninsula Borough for tourism marketing and 25%to schools to
100%to tourism marketing and going out to RFP for this service. McClure was very interested in
hearing from the public and encouraged folks to please contact her with their opinion on these
matters. The assembly also passed a resolution to place an advisory question on the October 7,2014
ballot asking if the borough should exercise and fund limited animal control powers for animal
rescue outside cities in the borough. The allocation of the cruise ship head tax proceeds would be
voted on in August. Seward was anticipated to receive $306,722.50. McClure invited the public to
the open house for the new Bear Creek Fire Station on July 19, 2014.
In response to Squires,McClure did not think Seward would get any of the proceeds from the
bed tax if approved, but Seward would still be included in the marketing efforts already in place.
City Manager's Report, Acting City Manager Ron Long stated there had been no
purchase orders between $10,000 and$50,000 approved by the City Manager since the last council
meeting. Administration met with representatives from Alaska Department of Transportation
regarding the airport runway project.A series of public meetings and scoping sessions would begin
in the fall.
In Public Works,the Department of Transportation assigned a Project Manager for the City's
road projects and established a schedule as follows: environmental and right-of-way work to take
place September 2014 through March 2015;design and engineering September 2014 through March
2015; bids solicited August 2015,and construction October 2015 through July 2016. An Invitation
r.. To Bid (ITB) was advertised and posted on July 10, 2014 for Sludge Removal at both sewage
lagoons.
In the Harbor, the City Manager negotiated a short term lease with Raibow Fiberglass and
Boat Repair, LLC that took effect July 1, 2014 with the authorizing resolution for this lease to be
submitted for council consideration on July 28, 2014. The March 25, 2014 short term lease of an
adjacent parcel would terminate on July 25, 2014. The D-Float replacement project was at the final
closeout stage. Vigor Alaska officially began operations at the shipyard July 8, 2014.
In the Electric Department, administration negotiated the submitted bid for construction of
the crew space. The project should move forward soon. In Parks and Recreation,the Fourth of July
weekend was busy, but peaceful.
Public Works Director W.C. Casey updated council on the lagoon. He wasn't sure what
was attributing to the odor problems; warm weather and heavy loading from the Fourth of July
weekend could be causes. They finished installing some of the aerators today. That installation and
adding calcium nitrate would hopefully mitigate some of the odors. They had a pre-bid conference
this week for the sludge removal bid. He couldn't tell council how much of the smell was from the
weather,and how much from the valves.It was hard to know. It was considerably odorous,but it was
not as bad as last summer. In response to Casagranda, Casey stated they gave the aerators a trial run
today. They were fine bubble aerators, which disseminate bubbles 20 feet down. The aerators
i .. designed for that facility were diffusers with larger bubbles that went to the top and dispersed. The
dissolved oxygen levels were not as high, so that showed something was going on there. The
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 352
treatment was limited right now. Today was the first day of the new aerators for a trial, but Casey
noted they had to wait for approval from the State Department of Environmental Conservation to
fully use them.
Darling thought the Lowell Point residents asked for the city to not remove sludge during the
summer season so as to not cause more odor. Casey stated the sludge removal at the Lowell Point
Sewage Lagoon wouldn't begin until after Labor Day. Factors such as mobilization and draining of
the lagoon would have to occur first before actual sludge removal happens. Casey clarified the bid
was for SMIC and Lowell Point Sewage Lagoons.
City Attorney's Report, Will Earnhart stated the city's law firm worked with
administration to resolve current issues including general matters advising on employment issues,
reviews of resolutions/ordinances, code interpretation and code revisions. They assisted
administration with the Invitation To Bid on the sludge removal at the sewage lagoons. In the
Harbor, the attorney assisted with the shipyard sale to Vigor Alaska. They advised on land matters
including various foreclosure and easement issues. Currently,there were some larger longstanding
property issues they hoped to get resolved.The attorney also assisted the Electric Department on the
appeal process amendment to the interconnect ordinance recently enacted by council.
Earnhart congratulated the city on the Fourth Of July events.He had never seen a crowd that
big in Seward.The police presence was there but not huge.Things were orderly and clean.City staff
deserved a pat on the back.
Other Reports, Announcements and Presentations
PUBLIC HEARINGS
Resolution 2014-054,Waiving Competitive Procurement Requirements To Authorize The Sole-
Source Purchase Of A New 330 Ton Boat Lift From Marine Travelift In The Net Amount Of
$1,441,087,Declaring The Current Boat Lift Surplus To Be Used As A Trade-In,Revising The
Harbor Tariff To Increase The Lift Rates, And Appropriating Funds
Motion (Terry/Casagranda) Approve Resolution 2014-054
Long said the need for this replacement was the current lift was a 20+year old machine.Parts
were getting harder to find and taking longer to fix. The council had a history of the fee schedule
before them.It was meant to better facilitate businesses doing business.Long explained some of the
benefits in upgrading from a 250 ton Travelift to a 330 ton.Administration was asking to change the
tariff and noted the increase was still very competitive with the other rates in the state. A separate
resolution would be required if council supported an inter-fund loan.This would be helpful with the
SMIC expansion project.The city hoped for some state funds to come back for the SMIC project,but
was not counting on that at this point.If this resolution passed tonight,staff hoped to have this lift up
and running January, 2015.
Deputy Harbormaster Norman Regis said the lift was getting old,p arts were harder to find
and often needed to be manufactured. It often was broken and staff did their best to keep it going.
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 353
This proposed lift could take larger boats and could eventually be widened to accommodate even
larger vessels.
aar.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Ron Wille, of Kenai Fjords Tours, stated they liked doing business with the harbor. A
reliable travel lift was very necessary and he supported this purchase. He noted last year there was a
new wash down pad that instituted new fees. Wille understood these fees were necessary, but they
did raise the cost of lifting a boat substantially. Now there was nearly a 25% increase in fees
proposed. There was a significant amount of revenue that was generated from the boat harbor:
property tax, ad valorem tax, sales tax, head tax for the docks, electricity in the harbor ($.26 a
kilowatt),and raw fish tax. He thought the other costs should be factored in staffs research,not just
the travelift rates. Wille noted how much rates really had increased in the last few years with the
wash down pad and now this proposal.He encouraged that the interest on the loan proposed from the
motor pool to be looked at and for council to consider just transferring the funds.
Pinkney Cunningham, General Manager of Vigor Alaska and former General Manager of
Seward Ship's Drydock, looked at the proposal very recently. Vigor was not in competition with
boats that came up on the travelift. The necessity for a reliable and safe piece of equipment was vital.
Regarding sole sourcing the contract,Marine Travelift was the only company he would recommend
and didn't think the city wanted to be experimenting with companies far away.
„r„ No one else appeared to address the Council and the public hearing was closed.
Keil asked if the extra widening would come at a cost. Long said they didn't know what the
cost would be at this point. He guessed at least a quarter million, if not more.
Terry asked if the Port and Commerce Advisory Board (PACAB) had an opportunity to
comment. Long said their last meeting was cancelled due to a lack of quorum,but it was supposed to
be discussed.
Squires understood why the rates were raised in the harbor, and if this equipment was
upgraded, he understood they need to find a way to pay for it, but he was worried the city may be
pricing themselves out of business. Regis said the increase was just trying to help pay for the new
lift. Long said they wanted to offer advantages to not only local boats, but the local boat repair
businesses in town.
Motion to Amend (Terry/Casagranda) Amend Resolution 2014-054, striking "to
increase the lift rates" in the title, deleting
the proposed new language in Section 265
of the tariff language and restating the
original language.
Terry thought PACAB needed to comment on this prior to council voting on this increase.
Squires agreed, but thought it might stall the project to wait for PACAB to meet.
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 354
Casagranda agreed it should be brought back to PACAB.
Motion to Amend Failed Yes: Terry "'
No: Darling, Casagranda, Keil, Squires,
Bardarson
Motion (Keil/Casagranda) Refer Resolution 2014-054 to the Port and
Commerce Advisory Board
Keil also wanted to refer this issue to PACAB but also showed concern over this delaying the
purchase.Casagranda said the current lift was working and she would rather an educated decision on
this issue be made.
Regis estimated the quote received for the travelift was 30-60 days.Beyond that the numbers
could change.
Terry and Squires did not want to postpone this matter.
Motion to Refer Failed Yes: Casagranda
No:Darling,Keil,Squires,Terry,Bardarson
Darling noted staff said the old lift was dangerous. Regis said the lift was not coming down
evenly, causing the boat to twist around. Recent repairs were made and now it was operating
correctly for the time.
Casagranda said she appreciated all the boats that used the travelift and understood they
contributed to the general fund. She noted the general fund was supporting SMIC and did not want
that support to continue any longer.
Terry noted the additional fee for vessels 55 feet and longer remained at $21.00.
Main Motion Passed Yes:Keil,Darling,Terry,Squires,Bardarson
No: Casagranda
UNFINISHED BUSINESS
Items Postponed from Previous Agenda
Discussion and direction on selling land currently leased to Harmon Properties, LLC in the
Seward Marine Industrial Center. (Postponed from the June 23, 2014 Meeting)
Long noted the master plan this time included cost breakdowns that were not incorporated
before. If this parcel remained in part of the consideration of the plan,staff would recommend no to
this proposal, and if this parcel was sectioned out of the master plan, staff would recommend yes.
awl
City of Seward, Alaska City Council Minutes
July 14, 2014
Volume 39, Page 355
Long said this property was along the northern border of the boat storage area. In response to
Darling,Long stated this had not been reviewed by the Planning and Zoning Commission but noted
the commission recommended all land at SMIC be put for up lease at this point.
Terry felt working with private property owners didn't negate any plans. She was in favor of
moving forward with starting this process to sell.
By unanimous consent, council suspended the rules to allow Larry Harmon from Harmon
Properties, LLC to speak.
Larry Harmon stated if someone was going to invest in anything,they would rather own it to
begin with. He was unsure how much he would invest in something he didn't own. Harmon didn't
know what the plan was going to be or what the rates would be. He hoped to move forward on
development this fall, if possible. Inside boat storage was the intended use at this point.
Casagranda asked how the master plan they were getting from the Alaska Industrial
Development and Export Authority(AIDEA)was funded.Long said it was from the money awarded
to the city by the state. She felt it was important that if they had that kind of resource, they used it.
Planning was really important and they were at the beginning of the planning. She wanted to see
businesses take off over there.
Darling hoped they could hurry this plan along,but shouldn't take this piece out of the plan at
this time But she was ultimately in favor of selling city land.
Terry said they should give direction to start negotiations on the sale.
Motion (Terry/Squires) Direct city administration to move forward
to sell the piece of property currently leased
to Harmon Properties, LLC in the Seward
Marine Industrial Center.
Motion to Amend (Casagranda/) Amend the motion on the floor, adding
"and direct administration to encourage
AIDEA to speed up the development of the
Seward Marine Industrial Center Master
Plan."
Motion to Amend Died for Lack of Second.
Main Motion Passed Unanimous
NEW BUSINESS
Resolutions
Resolution 2014-055, Authorizing The City Manager To Amend The Contract With Arctic
Elevator Company, LLC., For Elevator Maintenance And Repair, Changing The Scope Of
w.
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 356
Work To Include The Elevator In The Library/Museum Building Located At 339 6th Avenue,
And Increasing The Contract By An Amount Not-To-Exceed $250 Per Month.
Motion (Terry/Darling) Approve Resolution 2014-055
Motion to Amend (Terry/Keil) Amend Resolution 2014-055, changing the
physical address of the Library/Museum to
239 6`h Avenue in the title, section 1, and
the amending contract.
Long stated this was to incorporate compliance for the newest elevator to the city's contract.
Motion to Amend Passed Unanimous Consent
Main Motion Passed Unanimous
Resolution 2014-056, Approving An Engineering Contract With R & M Consultants In An
Amount Not To Exceed$86,412 For The Design And Construction Administration Of The NE
Harbor Fish Cleaning Station Project At The Seward Small Boat Harbor.
Motion (Casagranda/Keil) Approve Resolution 2014-056
Long stated the current station often was full and encouraged wildlife to the area which was
not ideal. This project was to be funded through grants and administration recommended awarding
the contract to R& M Consultants.
Motion (Darling/Casagranda) Amend Resolution 2014-056, deleting the
contingency amount.
The motion to amend was withdrawn by Darling and Casagranda with no objection from the body.
Motion to Amend (Darling/Casagranda) Amend Resolution 2014-056, changing the
amount in the title from$86,412 to$86,694
and the following amounts in Section 1:
contract amount from $78,556 to $78,813,
contingency amount from$7,856 to$7,881,
and total not to exceed amount from
$86,412 to $86,694.
It was noted this amendment was to correct the resolution to reflect the contract amount listed
in the contract with R& M Consultants.
Motion to Amend Passed Unanimous
Motion to Amend (Darling/Keil) Amend Resolution 2014-056, remove the
contingency allowance by changing the
dollar amount in the title and Section 1
City of Seward,Alaska City Council Minutes
July 14, 2014 Volume 39, Page 357
from $86,694 to $78,813, and striking the
following language in Section 1: "; in
addition,a 10% contingency in the amount
of $7,881 is authorized upon approval in
advance, in writing, by the City Manager,
for a total contract amount not to exceed
$86,694"
Darling felt if the project went over budget, the staff should have to go back to council for
approval of more funding.
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Resolution 2014-057,Authorizing The City Manager To Submit A Municipal Harbor Facility
Grant Application To The State Of Alaska, Department Of Transportation And Public
Facilities In The Amount Of$2.684 Million For The Replacement Of B, C, And S Floats In
The Seward Harbor.
Motion (Casagranda/Terry) Approve Resolution 2014-057
Long stated if this work was completed,it would change the fairway lift from A and B float.
This grant application would be submitted in the Tier I category for the State of Alaska, for those
harbors that took over ownership from the state. The project was shovel ready. A Tier I grant was a
one-time opportunity and would take care of the rest of the harbor to get to a sustainable place,Long
stated. This resolution was asking for the authorization to apply for the grant.
Harbormaster Mack Funk stated section 4 of the resolution noted the city confirmed its
intent to provide matching funds. Additional revenue bonds were unlikely for this project. The
project was really necessary as A, B, and C docks were almost 50 years old. The docks themselves
were sinking and not up to the standards they try to keep in Seward.
In response to Casagranda, Long said the harbor could support this match if awarded the
grant. It was noted for application purposes the internal funds for matching did not have to be
indicated at this time.
In response to Darling, Funk stated the grant would be scored in late September/early
October,then they would know the city's ranking.A high ranking would strengthen their case with
the Legislature, but they wouldn't know if the money was available until June, 2015.
Bardarson was glad to see this come forward. While in Juneau this year,it was apparent this
opportunity may not come back again. Funk noted this one application cycle was once a year.
..., Motion Passed Unanimous
Resolution 2014-058,Authorizing Purchase Of Two Used Ford F-250 Trucks In The Amount
City of Seward, Alaska City Council Minutes
July 14, 2014 Volume 39, Page 358
Of$7,500 And $8,000, And Appropriating Funds.
Motion (Casagranda/Keil) Approve Resolution 2014-058
Long stated these were auction vehicles staff saw as an opportunity for the city. One vehicle
would replace a Street Department truck,and the other to replace a Parks and Recreation truck.They
were well under the scheduled replacement or budgeted amounts for these vehicles as well as under
the blue book value. The vehicle search service Car Fax had good reviews on both trucks. Long
stated the City Manager had somewhat approved these in advance,but subject to council approval.If
council didn't approve, the city could put them on the market and sell them.
Darling asked what would happen to the two existing vehicles.Long said they would go into
surplus. Casagranda asked if both existing vehicles were V-8's,Long believed they were.Keil said
they should be looking to be fuel efficient but these vehicles came to them at a minimal cost.
Terry stated she heard there were additional vehicles also purchased in this auction for the
city. She asked if the additional auction vehicles were to be kept,would they come to council. Long
confirmed they would.If approved,Long confirmed the original vehicles would be stricken from the
motor pool.
Motion Passed Unanimous
Other New Business Items
Schedule a Work Session with the State Fire Marshal's office regarding general deferment
processes and 2012 International Building Code Amendments on October 13,2014 at 6:00 p.m.
The date was changed by council due to scheduling conflicts on the date originally proposed.
Schedule a special meeting to enter into a contract for sludge removal and disposal for the
SMIC and Lowell Point Lagoons.A special meeting was scheduled for August 4,2014 at 12:00
p.m.
INFORMATIONAL ITEMS AND REPORTS
Letter supporting Kenai Peninsula Borough Ordinance 2014-25, establishing a borough
wide bed tax with exemption of cities that currently levy a similar tax.
Reminder to the public that July 20, 2014 is the voter registration deadline for the State
Primary Election on August 19, 2014 — Last day for voters to register to vote or update their
registration information.
COUNCIL COMMENTS
Keil noted July 20,2014 was a Sunday,so people should register to vote online if they waited
until Sunday. She congratulated the Chamber of Commerce and the City of Seward on a successful
Fourth of July festival. On August 12,2014,the Alaska Legislature would be hosting the Council on
State Government. Over a 1,000 legislators from across the country would be visiting Seward.
City of Seward, Alaska
July 14, 2014 City Council Minutes
Volume 39, Page 359
Terry welcomed new Historic Preservation Commissioner Laura Erickson and begged the citizens to sign up for the Planning and Zoning Commission,the Seward Bear Creek Flood Service
Area Board, and Historic Preservation Commission.
Casagranda thanked Regis for his hard work on the information provided tonight on the
travelift. She gave congratulations for a successful Fourth of July which fell on a Friday this year. It
was a safe and un-dramatic weekend.
Darling thanked the City Clerk and the Deputy City Clerk for their help.
Bardarson had disappointment in the Department of Transportation's timeline for paving,if
there was anything that could be done to speed it up she would appreciate it. She stated she would
not be able to attend the Bear Creek Fire Hall Open House and hoped someone from council could
go. She thanked all volunteers and staff who helped make the Fourth of July a success. Bardarson
noted it was fun to see the kids in the lagoon fishing for king salmon.
CITIZEN COMMENTS
Sue Lang thanked council for their efforts in resolving the odor problem at the Lowell Point
Sewage Lagoon.It had been an interesting summer,but they appreciated the support and the effort by
staff to make it as painless as possible out there.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None
ADJOURNMENT
The meeting was adjourned at 9:41 p.m.
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