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HomeMy WebLinkAbout08112014 City Council Minutes City of Seward, Alaska City Council Minutes August 11, 2014 Volume 39, Page 371 CALL TO ORDER iron The August 11,2014 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 Ristine Casagranda Christy Terry Iris Darling David Squires Dale Butts comprising a quorum of the Council; and Ron Long, Assistant City Manager Brenda Ballou, Deputy City Clerk ..,, Absent—Marianna Keil CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Chip Arnold read a letter from Chance Miller who resided on Lowell Point relating to the sewage lagoon. Teri Arnold said she watched the television news tonight and said although the residents of Lowell Point had not contacted the news station, there had been news coverage on the television tonight about the sewage lagoon. She was upset about how the city was portrayed on the news, but also thought the timeline distributed by Public Works was not acceptable.Arnold hoped that council would keep this as a steady agenda item until the issue was resolved. John Page said he was a Lowell Point resident and ran his Sunny Cove business there. He had always been happy there,but now thought the city had been negligent in their care of the sewage lagoon. He was concerned with the air quality and wanted the air tested. Bill Pfisterer said he ran a business at Lowell Point and was concerned about the apparent inaction of the city since he spoke at the last city council meeting. Every night he was awakened from sleep by the odor,and he had to take medicine every day as a result.He was concerned that the trio chain of command for the city had not been followed for accountability, that there had not been proper oversight of the facility, or there had been negligence. Pfisterer wanted people held responsible. City of Seward, Alaska City Council Minutes August 11, 2014 Volume 39, Page 372 Dave Leech read a letter from George Walker regarding suggestions for managing the magisewage lagoon at Lowell Point. Gayle Selyem said she had been living at Lowell Point for eight years and had been happy there until recently. The smell from the sewage lagoon had been so bad that her family had not been able to enjoy any outdoor activities or open their windows,and her eyes watered and burned. Selyem said the conditions were unlivable. Pam Sousa was a co-owner of Liquid Adventures on Lowell Point, and loved living there since 2004. The smell from the sewage lagoon ruined her summer, and she and her family had not been able to enjoy any outdoor activities. Sousa was concerned that people were experiencing health problems, including coughing, watery eyes and upset stomachs. Sue Lang was a resident of Lowell Point and manager of Silver Derby Campground. Lang was intentionally avoiding booking reservations for May and June 2015,which represented 25%of her annual income,because she didn't believe the city would clean up the sewage lagoon in a timely manner. Karl Van Buskirk said he operated Stormchasers on the way to Lowell Point and from his shop the odor had been very strong. Van Buskirk was now concerned for his employees' health.He felt the city had been ignoring the problem for many years and telling the residents that the odor was caused by other things like rotting trees and vegetation. He questioned whether raw sewage was being dumped into Resurrection Bay. He suggested the city may have outgrown the sewage plant's capacity to handle the volume. Sherri Miller said she had always considered the city to be a good neighbor.Miller had been hospitalized for breathing difficulties when she was living at Lowell Point and was prescribed steroids. Miller said on two different occasions when she left town her symptoms cleared up, but when she returned to Lowell Point her eyes became swollen and watery and her breathing more difficult. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Terry/Casagranda) Approval of Agenda and Consent Agenda Terry added an item to schedule a work session to discuss the Lowell Point Sewage Lagoon. Bardarson added Resolution 2014-066 to the consent agenda. Bardarson added Resolution 2014-067 to the consent agenda. Casagranda added Resolution 2014-069 to the consent agenda. tada. Casagranda added Resolution 2014-070 to the consen g e n City of Seward, Alaska City Council Minutes August 11, 2014 Volume 39, Page 373 Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2014-066,Authorizing The City Manager To Accept Legislative Grant#15- DC-144 From The State Of Alaska Department Of Commerce, Community, And Economic Development In The Amount Of $1,300,000 For Dredging And Disposal Of Sludge Accumulated At The Lowell Point Sewage Lagoon,And Appropriating Funds. Resolution 2014-067,Authorizing The City Manager To Accept Legislative Grant#15- DC-145 From The State Of Alaska Department Of Commerce, Community, And Economic Development In The Amount Of$5,900,000 For The Design And Development Of The Seward Marine Industrial Center(SMIC)Including Breakwater Engineering And Construction And Appropriating Funds. Resolution 2014-069,Accepting A Grant In The Amount Of$29,682 From The Alaska Department Of Fish & Game For The Purpose Of Replacing And Improving Sewage Pump Out Facilities At The Seward Small Boat Harbor, Authorizing Matching Funds In The Amount Of$9,894 And Appropriating Funds Totaling$39,576. Resolution 2014-070,Authorizing The City Manager To Enter Into A 48-Month Fair Market Value Lease Agreement With Konica Minolta Business Solutions For Seven Replacement Copiers For A Base Amount Of$1,896.64 Per Month. Approval of the June 9,2014 and June 23,2014 City Council Regular Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Presidential Service Awards for Walter Corrigan,Mike Moore,Don Cripps,and Jean Cripps. Borough Assembly Report, Sue McClure reported the assembly had met twice since her last report.There had been an ordinance before the assembly to ask voters whether or not they would support a borough-wide bed tax to fund tourism, but Borough Mayor Mike Navarre vetoed the ordinance and after much discussion, the assembly failed to override the veto. The assembly appropriated approximately $300,000 to the city from this year's cruise ship head tax receipts. There would be a citizen advisory vote on the October ballot to indicate whether borough elections should be held by mail. There would also be a two-part citizen advisory vote on the October ballot asking voters whether they want the borough to have limited animal control powers specifically for domestic animal rescue outside city limits, and whether there should be a 0.02 mill property tax increase to support that endeavor. There were three Borough Assembly seats representing Homer, Kenai and Sterling up for election this year, as well as several service board area seats. City of Seward,Alaska City Council Minutes August 11, 2014 Volume 39, Page 374 The assembly would next meet on September 2, 2014. The agenda for that meeting would include passing through money from the state: $100,000 grant for the Seward Bear Creek Volunteer Fire Department to help finish the building,and$500,000 for the Seward Bear Creek Flood Service mai Area Board to help them continue flood mitigation work. In response to Squires, McClure said the animal rescue advisory vote would be a borough- wide service, outside city limits, and was intended to mitigate animal abuse, as well as provide support and response in the event of a disaster. City Manager's Report, Assistant 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. There would be nearly 1,400 visitors in Seward this week from the Council of State Governments.Negotiations for employment for the Project Manager position were underway.Long thanked Harmon Construction for replacing the glass on the bus stop located at Kawabe Park. In the Public Works Department,the bid opening for the Lowell Point sludge removal project was held today and the apparent low bidder was Merrell Brothers Construction at approximately $3.988 million. Public Works and city administration received multiple complaints regarding the odor problem at Lowell Point and this project should be completed by June 2015. Further, staff corresponded with the Alaska Department of Environmental Conservation(ADEC)and was working toward a solution.Residents of Lowell Point were emailed about odor control measures taking place. Staff was monitoring dissolved oxygen levels and odor control measures,including adding calcium nitrate to the lagoon. Public Works Director W.C. Casey said last week one of his staff reported a Channel 2 news crew at the sewage lagoon.The news team told Casey that someone had called them a reported raw sewage had been dumped into Resurrection Bay,and Casey denied any knowledge of that concern. Long added that the city had conducted air quality testing would be conducted tomorrow four times throughout the day by White Environmental Consultants at the Lowell Point Sewage Lagoon. Casey said he spoke with the Environmental Protection Agency, but the State of Alaska had no requirements for hydrogen sulfide.Public Works staff had been testing the air and had been getting zero detect results. In the Harbor Department,the 59th Annual Silver Salmon Derby started on August 9,2014. Harmon Properties,LLC executed a seventy-nine(79)year lease extension on their 2-acre parcel at the Seward Marine Industrial Center(SMIC).The lease agreement would come before council on the August 25, 2014 agenda. The harbor received no bids for the impounded vessel auction held on August 1, 2014. Subsequently, fluids and a few parts were removed from the vessel and then the vessel hulk was hauled off to the dump for disposal. A representative of the Department of Homeland Security inspected Seward's dock facilities on August 4,2014 to evaluate the feasibility of Seward as an emergency backup to the Port of Anchorage. The Electric Department received no responses for the load tap changers/substation transformers maintenance and renovation work proposal.Per City Code Section 6.10.120.A.10,the Electric Department would negotiate with a qualified contractor on a price and schedule the work for the summer of 2015. Casagranda pointed out that many Lowell Point residents complained about the air quality at night,and requested that air quality testing also be conducted during the nighttime,or even for a full City of Seward,Alaska City Council Minutes August 11, 2014 Volume 39, Page 375 24-hour period.In response to Darling,Long said the Lowell Point Sewage Lagoon dredging project } had been delayed for many reasons, and wanted to focus instead on obtaining funding and solving the problem.Terry echoed Casagranda's concerns and said if a tester was coming down to test,then she wanted to take advantage of that opportunity to get as many tests done, as thoroughly, as possible. In response to Butts, Casey said the Public Works Department had gas detectors that staff was trained and capable of using. The contractor that was coming tomorrow would be bringing the same machine. Squires said he had personally borrowed the Seward Fire Department's gas detector last Thursday and performed his own independent air quality test. Squires said his testing registered a zero detect reading for hydrogen sulfide. However, he also said that by the time he finished his testing and returned to town after one hour, he had a headache. He believed something was really wrong and agreed that further testing needed to be done. Bardarson requested administration prepare to address the priority lists in September and the budget in October. City Attorney's Report,Eric Wohlforth stated his firm had worked with administration on administrative matters,employment issues and records requests.He worked on documents related to the proposed sale of the Jesse Lee Home property, title research on the land transfer for the Spring Creek Correctional Center, and various other matters. Terry asked Wohlforth if he had reviewed the upcoming Harmon Properties,LLC lease and he said he would review the documents for that proposed lease prior to its coming before council. Other Reports, Announcements and Presentations - None PUBLIC HEARINGS -None UNFINISHED BUSINESS -None NEW BUSINESS Resolution 2014-065,Authorizing The City Of Seward To Issue Harbor Improvement Revenue Refunding Bonds, 2014 In The Principal Amount Of Not To Exceed $3,675,000 To Refund Certain Outstanding Harbor Improvement Bonds Of The City,Fixing Certain Details Of Such Bonds And Authorizing Their Sale, And Providing For Related Matters. Motion (Terry/Casagranda) Approve Resolution 2014-065 In response to Bardarson, Finance Director Kris Erchinger and City Attorney Eric Wohlforth clarified that the city could add any revenue funds, but not grant funds, to the Harbor Enterprise Fund in order to meet the bond payments.Erchinger added there were several alternatives that could be considered to cover bond payments before the city would have to increase rates, including reducing operating expenses at the harbor or transferring funds from the General Fund. Wohlforth added that approach would be a refinancing approach more than refunding. City of Seward, Alaska City Council Minutes August 11, 2014 Volume 39, Page 376 In response to Butts, Long said the city was not taking on any new obligations, but was mai essentially consolidating two existing bonds.This represented a significant cost savings opportunity to the city by providing for lowered payments over the same term.Wohlforth added the precise cost savings would not be determined until early September when the bonds were sold. Motion Passed Unanimous Resolution 2014-068,Approving A Short Term Lease Agreement With Raibow Fiberglass And Boat Repair, LLC For Additional Land At The Seward Marine Industrial Center. Motion (Terry/Casagranda) Approve Resolution 2014-068 Harbormaster Mack Funk directed council to laydown language that would amend the effective date of this resolution,which was advised to Funk by Wohlforth's colleague,Will Eamhart. Wohlforth clarified the effective date of the lease was the date it was negotiated by the City Manager, which was July 24, 2014. If this resolution was approved tonight, the lease would continue uninterrupted, but there would be the potential for a 30-day suspension period as well. Terry challenged Funk's interpretation of the code wherein the effective date was retroactive to the negotiation date. Wohlforth responded that his interpretation was the effective date for a short- term lease was retroactive, but subject to council approval. Motion to Amend (Terry/Bardarson) Amend Resolution 2014-068 by changing mai Section 2 to read: "This lease was effective on July 24, 2014. This resolution shall continue the lease, but is subject to suspension for the first thirty (30) days." Motion Passed Unanimous Other New Business Items Council scheduled a work session to discuss the Lowell Point Sewage Lagoon on August 18, 2014 at 6:00 p.m. Council requested that administration invite M.L. Foster and White Environmental Consultants to attend the work session. INFORMATIONAL ITEMS AND REPORTS June 2014 Providence Seward Medical Center Financial Report. COUNCIL COMMENTS Terry thanked the Electric and Public Works Departments for completing the cross walks Noland signage at the Electric Warehouse. She implored Seward citizens to apply for the Planning & Zoning Commission. City of Seward,Alaska City Council Minutes August 11, 2014 Volume 39, Page 377 Butts thanked all the Lowell Point residents who came out to speak tonight.He asked people tt to speak up,but when making statements to make sure they're stating facts and not spreading rumor or conjecture. He congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps on receiving the President's Service Award this evening. Casagranda personally apologized to Lowell Point residents for not doing more to help their situation. Squires sympathized with Lowell Point residents, and although he could not take responsibility for past council actions, he ensured Lowell Point residents that the current council would hold the City Manager accountable and the issue would be addressed during the annual evaluation process, if necessary. He said tonight's recipients were well deserving of the President's Service Award. Darling congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps, and thanked all volunteers for pitching in. She thanked Lowell Point residents for coming and speaking out, and ensured them that council was concerned and addressing the issue. Long encouraged people to vote. Bardarson congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps, thanked the Lowell Point residents, Harmon Construction for the bus stop glass repair, and wished everyone good luck in the Silver Salmon Derby. CITIZEN COMMENTS Lynda Paquette said the research she had performed indicated that the gas monitoring equipment that Casey mentioned was designed for confined spaces,and not for out-of-doors testing. She believed this was because high levels of hydrogen sulfide did not normally exist in high levels out-of-doors. She reported on a spontaneous health poll she conducted on Lowell Point residents with the following complaints: 1 person with asthma,55 people with eye complaints,48 people with shortness of breath, 48 people with fatigue, 48 people with loss of appetite, 53 people with headaches,47 people with irritability,44 people with loss of memory,and 44 people with dizziness. Sue Lang thanked the city for scraping Lowell Point road today. She thanked Lynda Paquette for her time and efforts to perform research, get questions answered and provide communications with the residents of Lowell Point. Teri Arnold thanked council for listening tonight and believed they would make something happen. Ron Wille spoke about the harbor bonds. He said the passenger head tax was originally created to pay for E Float renovations and fish cleaning stations,and was intended to be sunset,but it never was.Instead,the head tax rate was increased and used to fix other docks.Now,he believed the cycle of passenger head tax and bonds would never end. He encouraged council to shorten the time frame and pay off the bonds sooner. City of Seward,Alaska City Council Minutes August 11, 2014 Volume 39, Page 378 COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS i Nom Squires said the gas detectors owned by the city were designed to work in the out-of-doors and he thought that White Environmental had different equipment that was capable of testing for a 24-hour period. Butts said the gas detectors owned by the city were calibrated,and many people on staff and volunteer fire fighters were trained on how to use and maintain them.He visited Lowell Point today for the second time to speak with residents and agreed the smell was bad. Casagranda requested that White Environmental Consultants be contacted to ensure they brought the necessary equipment to test out-of-doors and for a 24-hour period. ADJOURNMENT The meeting was adjourned at 9:08 p.m. ,41.. . .4. 10JA./.,A.„if A / 1 ren a Ballou, C ' can Bardarson __ Deputy City Clerk Mayor :t!..,; :.,-.. o. a. (City%%.'°)O; ,3 t�A : ♦ .I .p. o 3 3 tV S Ps)«L'rS: O i1R . O + a 4..4.." a ti '-W a 1,- !'t a yr gip *V._ .•••.:•.. Jior;•fraf a]