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HomeMy WebLinkAbout07282014 City Council Minutes City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 360 CALL TO ORDER The July 28, 2014 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Police Chief Tom Clemons 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 Dale Butts Iris Darling comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Bill Pfisterer commented about the Lowell Point Sewage Lagoon. His father had designed a methane-capturing system in the 1950s to use it to convert to energy; the concept was not a new system. He had never before experienced any type of problems until recently, when he started noticing the vapors at night. Pfisterer wanted the city to be good neighbors. Lynda Paquette spoke about Lowell Point Sewage Lagoon. She thanked people for getting the Request For Proposals(RFP)going. She wanted more information about the timeline proposed to remedy the situation,and was concerned that the deadlines had not been included in the RFP notice. Lowell Point businesses were already taking reservations for the 2015 season,and she was concerned that the job might not be completed until June 2015. Paquette wanted an official health test conducted now and was concerned about what people were breathing. Margaret Anderson wanted to address selling city-owned property. She thought it was beneficial for the city to have more property on the tax rolls,and in that respect would be in favor of leasing property. Wolfgang Kurtz spoke as a candidate for the Historic Preservation Commission.He looked forward to working with the Commission if he was appointed. City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 361 Sue Lang was the manager of the Silver Derby Campground,and reported that one-third of her campground was vacant due to the odor at the sewage lagoon. She said the city was not being a good neighbor. John French spoke about the sewage lagoon. He said sulfur-producing toxins were being emitted from the lagoon, including methane and hydrogen sulfide. He concurred that some testing should be done to monitor the anaerobic toxins that would be released during the dredging. Tom Tougas wanted to address the reconsideration of the sale of city-owned property to Larry Harmon. He disagreed with the concept of the city keeping the property and then taking out a bond against it in the future. Brad Snowden thought that government should not be land owners and he supported selling the land to Harmon. He also wanted to address his proposal of having a new cruise ship dock located downtown and encouraged council to try to see his vision. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Bardarson pulled the Certificate of Appreciation for citizens Ronn Hemstock, Jill Hemstock and Stephanie Cronin for ensuring the safety of others in the community and stated it would come back erion a later agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the May 12, 2014 and May 27, 2014 City Council Regular Meeting Minutes. Appoint Bob Linville and Carl Hughes to the Port and Commerce Advisory Board with terms expiring July, 2017. Appoint Wolfgang Kurtz to the Historic Preservation Commission with a term to expire May,2016. Cancel the August 4,2014 Special Meeting. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards 4 Introduction of visiting Japanese exchange students Satoe Miura,Yukako Kanda,Said Takizawa, and Sachiko Takebe; proclamation for Student Exchange Program; Seward exchange student Ryan Johnson. City of Seward,Alaska City Council Minutes July 28, 2014 Volume 39, Page 362 Chamber Report,Cindy Clock stated she supported the development of the Seward Marine Industrial Center(SMIC). The energy group was breaking out into subgroups for the next thirty days. The chamber's marketing materials had been updated. Alaska had been chosen as a test site for unmanned aerial systems (i.e., drones). The chamber was seeking someone to take over the leadership role for the Seward Economic Growth Plan.The Mt. Marathon race was very successful, and very hot, but the Fourth of July event was very well attended. The 59th Annual Silver Salmon Derby would start on August 9,2014 and the chamber still had a few open spots for volunteers. The U.S. State Department was sending representatives for a site visit to use Seward as a potential location for their Arctic Conference in 2015. The chamber would be arranging the annual Meet The Candidates night. The chamber would be starting a remodel soon. City Manager's Report,City Manager Jim Hunt stated there had been no purchase orders between $10,000 and $50,000 approved by the City Manager since the last council meeting. Hunt and Assistant City Manager Ron Long attended the signing of Senate Bill 140 at the Governor's invitation.This legislation was crucial to the continued development of the Seward Marine Industrial Center(SMIC) and Seward. The invitation to bid for the Lowell Point Sludge Removal and Disposal contract went out July 9, 2014 and bids were due August 8, 2014. Administration requested that council schedule a special meeting the week of August 18, 2014 to authorize the City Manager to enter into a contract with the winning bidder. Work on the project must be completed by June 15, 2015. The Public Works Department received approval from the Department of Environmental Conservation(DEC)to operate the aerators at the Lowell Point Sewage Lagoon and they were up and running. Raibow had been offered another short term lease for approximately 1.76 acres east of the Vigor shipyard. A surveyor was contacted by Raibow in order to start the re-platting process on the two short term parcels. Meanwhile,a separate agreement was executed whereby Raibow would properly demolish and haul-off four derelict vessels.The D Float Replacement Project was set for final closeout no later than August 1,2014. The B,C, S,and a portion of G Dock Replacement grant application would be submitted to Juneau on July 29, 2014. Valarie Kingsland would start as the new Director of the Seward Community Library Museum on August 11,2014. In the Parks and Recreation Department, 15 Adventure Campers went to Caines Head for a campout on July 23, 2014, and both the Regular Day Camp and Adventure Camp reached capacity this week with 52 campers registered.The Parks and Recreation Department would host their annual Sponsor&Volunteer Appreciation Picnic on Thursday,July 31,2014 at the Branson Pavilion. Administration expressed its appreciation and congratulations to Mark Stauble, Parks Operations Supervisor, on his announced retirement. The Parks and Recreation Department staff submitted Two Lakes Park as a nominee for the Facility Excellence Award,and this year the Alaska Recreation and Park Association named Two Lakes Park the 2012 recipient in Mark Stauble's honor. Harmon Construction offered to replace the Kawabe Park bus stop Lexan with safety glass and would complete the glass replacement at Fourth Avenue and Adams Street around mid-August. City of Seward,Alaska City Council Minutes July 28, 2014 Volume 39, Page 363 ADA handicap access improvements took place at First Lake, including removing hazards, improving slopes and adding D-1 to solidify walking surfaces. In response to Keil,Hunt clarified that the Spring Creek Correction Center's sewage did not feed into Lowell Point but went into the SMIC sewage lagoon. Keil requested a quarterly report on the parking and boat ramp fees from administration. Casagranda wondered why the dredging project RFP combined the two sewage lagoon locations. Long said responders could propose to dredge one or both locations. Casagranda was concerned that June 15, 2015 was too late in the tourist season. She wanted to see the deadline pushed back to before May 1, 2015. Darling wanted to see the deadline shortened to April, 2015. Other Reports,Announcements and Presentations Introduction of new AVTEC Director Ben Eveland. PUBLIC HEARINGS Resolution 2014-059,Entering Into A Purchase And Sale Agreement("Agreement")Between The City Of Seward And The Friends Of The Jesse Lee Home,Disposing Of Property At Less Than Fair Market Value To A Nonprofit Corporation,For Lots 15A And 15B,Jesse Lee Home Heights Subdivision Addition No.4 According To Plat 89-18,For Use As A Public Educational And Residential Boarding School. Motion (Terry/Casagranda) Approve Resolution 2014-059 Long said administration had a second proposed amendment for council to consider.He said the city had acquired this property by default,due to a foreclosure activity some years ago,and was upside down on it. It represented an attractive nuisance for the city. Administration recommended selling this property. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. John French was concerned that the Historic Preservation Commission was not involved in the preparation of this proposed sale. He reminded council that the Jesse Lee Home was on the National Historic Register. The City of Seward had a responsibility to discuss and assess the opinion of the State Historic Preservation Office,which was in favor of preserving the status of the Jesse Lee Home. He supported the Balto School being a native Alaskan leadership charter school, but was concerned that there didn't appear to be an emphasis on preserving the historical value of the property. Margaret Anderson was concerned that there was not enough oversight on the budget and was worried that there would be future problems related to zoning, stabilization, and schooling issues. She wondered how the Balto School would be sustained into the future and felt the city was City of Seward,Alaska City Council Minutes July 28, 2014 Volume 39, Page 364 heading for a cliff on this project. Rhonda Hubbard understood that the city was trying to indemnify itself from liability for this property. She didn't believe that$17 million would be enough for this project, and encouraged council to watch the progress of the school closely. Her understanding was that the building, in its current condition,was not restorable. She supported the idea of shortening the timeline for the school from five years to three years. She asked council to be wise with their decisions on this subject. Doreen Lorenz wanted to respond to citizen concerns. She had worked on other historic projects throughout the country and said there was no one in the state of Alaska who had the experience to ensure success in the restoration of the building. That was why the Friends of the Jesse Lee Home was working with Barbara Campagna, a consultant who knew how to proceed. She said the state had performed audits on the grant monies that the FJLH had received and determined they had been using the monies appropriately. No one else appeared to address the Council and the public hearing was closed. Casagranda echoed the citizen concerns that the timeline of five years was too long. Motion to Amend (Casagranda/Keil) Amend Resolution 2014-059 by reducing the performance period required from five years to three years. omm In response to Terry,administration said the five year period was chosen to coincide with the state's grant timeframe. To clarify,after a thirty day waiting period from now, but during the entire five year period following, the risk and responsibility for the property would be fully on FJLH. In response to Casagranda,Long said the state's requirement for completion by August 2019 included building stabilization. Council Member Darling declared a potential conflict of interest because she rented living space to one of the Friends of the Jesse Lee Home staff. Mayor Bardarson ruled that a conflict did not exist. Motion to Amend Failed Yes: Casagranda, Keil, Bardarson No: Squires, Terry, Butts, Darling In response to Terry,Long assured council that the Friends of the Jesse Lee Home would be required to comply with all building codes,permit requirements,etc. Long added that since the city was not initiating this action, but instead responding to a request, this proposal was not brought before the Planning and Zoning Commission or the Historic Preservation Commission. He added that the primary goal was to put the property to some useful purpose rather than preserve the historic integrity of the property. ,,.. Motion to Amend (Terry/Keil) Amend Resolution 2014-059 by adding new language in Section 10 which says, "Buyer may transfer the Property and its City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 365 obligations under this Agreement, which may perform the Work subject to the conditions and requirements of this Agreement, including but not limited to, applicable restrictive covenants in order to facilitate a tax credit financing transaction if recommended by tax counsel, upon approval of Seller, such approval will not be unreasonably withheld." Motion to Amend Passed Unanimous Motion to Amend (Squires/Darling) Amend Resolution 2014-059 in the contract under Consideration as follows:"...for any purpose than as a public educational and residential boarding facility, or are left vacant, unless the City and Buyer..." Motion to Amend Passed Unanimous Main Motion Passed Unanimous UNFINISHED BUSINESS Items for Reconsideration Direction given to administration to move forward with negotiations to sell the piece of property currently leased to Harmon Properties, LLC in the Seward Marine Industrial Center. (Clerk's Note:A motion to reconsider was filed timely on July 15, 2014 in writing by Vice Mayor Keil.) Motion (Keil/Casagranda) Reconsider the direction given previously to administration Motion to Reconsider Passed Unanimous Original motion was back on the floor and open for discussion. Council recessed the meeting at 8:45 p.m. Council resumed the meeting at 8:55 p.m. Hunt said administration was caught in the middle of the argument of selling versus leasing city-owned property because the Municipal Land Use Plan called for retaining ownership of property, yet private business owners often requested that the city sell property. City of Seward,Alaska City Council Minutes July 28, 2014 Volume 39, Page 366 Terry asked administration to explain why this particular proposal was brought forward for council consideration and not all the other requests made by other business owners. Long said it was because this proposal was brought forward by the interested party in writing and according to City Code, and other inquiries had not been formalized in this manner. Original Motion (Terry/Squires) Direct administration to move forward with (Motion made on July 14, 2014) negotiations to sell the piece of property currently leased to Harmon Properties, LLC located in the Seward Marine Industrial Center. Motion to Amend (Terry/Keil) Preserve two laydowns provided tonight as addenda to the packet, including administration's pros and cons statement and the Arcadis master plan letter. Motion To Amend Passed Unanimous Main Motion Failed Yes: Terry, Squires, Butts No: Darling,Keil, Casagranda,Bardarson NEW BUSINESS Resolutions Resolution 2014-060,Transferring$1,321,335 To The Capital Acquisition Fund,Representing 50% Of The General Fund Annual Surplus For 2012 And 2013, And Appropriating Funds. Motion (Casagranda/Terry) Approve Resolution 2014-060 Long pointed out that the dollar amounts in Section 1 and in the Agenda Statement were incorrect, and referred council to the laydown for the correct figures. Motion to Amend (Keil/Casagranda) Amend Resolution 2014-060 in Section 1 by striking, "...$3,950,324, reflecting 3.8 months..." and replacing it with "...$4,627,124, reflecting 4.5 months..." and correcting the same figures in the agenda statement. Motion To Amend Passed Unanimous Main Motion Passed Unanimous r„ Resolution 2014-061,Authorizing An Interfund Loan From The Motor Pool Internal Service Fund To The SMIC Enterprise Fund In The Amount Of $1,029,087 For The Purpose Of Purchasing A 330-Ton Travelift. City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 367 Motion (Terry/Squires) Approve Resolution 2014-061 .rr Motion to Amend (Terry/Keil) Amend Resolution 2014-061 in the following ways: in the 2" Whereas and in Section 1, strike the words "...at an interest rate of 2%"; in the 2"d Whereas and in Section 1, strike "$158,276" and replace it with "$147,012.43"; in Section 3, strike "$138,382.73", replace it with "$147,012.43" and end the sentence there by striking the remainder of the paragraph. Motion To Amend Passed Yes: Darling,Keil,Butts,Terry,Bardarson No: Squires, Casagranda Main Motion Passed Yes: Darling, Terry, Butts, Keil, Squires, Bardarson No: Casagranda Resolution 2014-062,Approving A Short Term Lease Agreement With Raibow Fiberglass And Boat Repair, LLC For Additional Land At The Seward Marine Industrial Center. Motion (Keil/Squires) Approve Resolution 2014-062 Harbormaster Mack Funk said this lease was separate and distinct from the others that Raibow had with the city. Motion Passed Unanimous Resolution 2014-063, Authorizing The City Manager To Enter Into An Agreement With Harmon Construction, Incorporated To Build Crew Spaces Inside The New Electric Department Warehouse For An Amount Not To Exceed$243,354 And Appropriating Funds. Motion (Casagranda/Terry) Approve Resolution 2014-063 By unanimous consent, council suspended the rules to allow Larry Harmon to speak. Larry Harmon said the cost of building out the office space was so expensive because of fire code requirements, which called for extra wall thickness on both sides of the studs, and which were driven by the nature of the building. Motion To Amend (Casagranda/Terry) Amend Resolution 2014-063 in Section 2 by changing the wording to read: "Funding for this contract in an amount of$221,231 is authorized, plus a ten percent (10%) City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 368 contingency, for a total amount not to exceed $243,354..." ism Motion To Amend Passed Unanimous Motion To Amend (Darling/Casagranda) Amend Resolution 2014-063 by eliminating the ten percent(10%) contingency. Motion To Amend Failed Yes: Casagranda, Darling No: Butts,Terry, Squires,Keil,Bardarson Main Motion Passed Unanimous Resolution 2014-064,Authorizing The City Manager To Purchase From Valley Power Systems, Inc.The Components,Including Installation,Supporting The Relocation Of Two(2)Electro- Motive Diesel(EMD)Generators,Previously Purchased From Arctic Pack,To Be Enclosed In The New Generator Building For An Amount Not To Exceed$212,403.01 And Establishing A Contingency Fund Of$21,240.30,And Appropriating Funds. Motion (Darling/Squires) Approve Resolution 2014-064 Motion To Amend (Darling/Casagranda) Amend Resolution 2014-064 by eliminating the ten percent (10%) contingency. Motion To Amend Failed Yes: Darling, Casagranda No: Keil,Butts,Terry, Squires,Bardarson Motion To Amend (Casagranda/Darling) Amend Resolution 2014-064 in the title and in Section 2 by striking the words "not to exceed"and replacing it with the word"of' and correcting the dollar amount in Section 2 to match the dollar amount in the title of $212,403.01. Motion To Amend Passed Unanimous Main Motion Passed Unanimous Other New Business Items -None INFORMATIONAL ITEMS AND REPORTS Invitation to the Community Pot Luck& Welcome Party for the student exchange program on Tuesday, July 29, 2014 at 6:00 p.m. at the Seward Community Library. Letter from City of Obihiro Mayor Norihisa Yonezawa RE: 2014 Mural Delegation to Seward. City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 369 COUNCIL COMMENTS eari Keil reminded the community of the Community Potluck tomorrow night to welcome the Japanese exchange students. She reminded residents there were still openings on the Planning and Zoning Commission. And she had been hearing comments from visitors the city looked good. Butts thanked everyone for their comments tonight. He reported he had met with Seward's Middle School Leadership Group. Butts stated his intent to file a candidacy statement for the upcoming municipal election. Squires thanked all the Commissioners for their work and said the Alaska Fire Conference would come to Seward in 2015. Bardarson thanked council for supporting the People 2 People program by performing guest speaker duties. CITIZEN COMMENTS Tom Tougas thought the last minute laydown regarding the SMIC status and recommendation was unfair. He considered the Arcadis master plan to be biased toward outside vendors. Lynda Paquette said she read the RFP for the Lowell Point Sewage Lagoon. She was upset add that if a temporary sewage facility could not be created at SMIC,then the sludge from SMIC would be trucked over to Lowell Point. She was concerned that additional sludge from SMIC would compound the problem at Lowell Point before the sludge removal project at Lowell Point could begin. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS -None City of Seward, Alaska City Council Minutes July 28, 2014 Volume 39, Page 370 ADJOURNMENT The meeting was adjourned at 10:28 p.m. ,----",Ck'Gt �„ ar ,� ; 1 CU 2.� Jolla a Kinney, MC an Bardarson Cit erk Mayor (City Seal) ,,,.....,,,,,, . : . y • • ma I • i •„ -•••••••••" t, ; ..NE 1,•''•• S �. ...... a