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.
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