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HomeMy WebLinkAbout08252014 City Council Minutes City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 383 CALL TO ORDER Lug The August 25,2014 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 Marianna Keil David Squires Dale Butts Iris Darling comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Brad Snowden thanked the community for their support during the primary election last week as a gubernatorial candidate. He was humbled and happy to get as many votes as he did. Snowden stated Seward had a great Police Chief. He announced he intended to run as a write-in candidate and was looking for a good Lieutenant Governor. Sue Lang reminded council the visitor industry for the Lowell Point season started on or about March 1.Anything the city could do to get the dredging project started earlier would be greatly appreciated. Alan Heavirland of Lowell Point owned a bed and breakfast business and their season started March 1. He had a busier April than May this year. The sooner the city could get the problem at the sewage lagoon tackled, the better. Sue McClure thanked Representative Chenault and Senator Micciche for coming to the special meeting and wanted to introduce everyone to the senator as he was a new senator for the Seward area due to redistricting. State Senator Peter Micciche was happy to be present tonight and was gathering information on the Lowell Point Sewage Lagoon. Administration and Public Works have already City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 384 spoken to him to help obtain funding. This was an essential service that needed to be remedied and he saw council was active on fixing this problem.Micciche stated he had history with the breakwater project,AVTEC,and the Boys and Girls Club.He left his business cards and was welcoming of any questions to help him learn more about Seward. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Mayor Bardarson added a travel report for the Mayor's Conference / Alaska Municipal League Summer Session. Motion Passed Unanimous The clerk read the following approved consent agenda items: Appoint Gary Seese to the Planning and Zoning Commission with a term to expire February 2016. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Founder's Day Proclamation Chamber Report, Cindy Clock stated the chamber resumed their economic development meetings this week. The Silver Salmon Derby was a success despite the weather, and an estimated 6,000 people fished the derby. Clock thanked Icicle Seafoods,the city,and the Bakery at the Harbor for taking care of everyone in the derby booth. The Chamber of Commerce interior remodel began this week and offices would temporarily relocate to the Holiday Inn Express in Suite B. The next chamber luncheon was September 5,2014 with Kenai Peninsula Borough Auditor DeRay Jones,and then on September 19,2014 with Anchorage Mayor Dan Sullivan.Meet the Candidates Night would take place sometime in September.The Seward Music and Arts Festival was September 26-28,2014 and the Alaska Historical Society/Museums Alaska Conference would take place in Seward in early October. Clock stated she was approached by Lowell Point community members,who asked her to urge the City Council to get the sewage lagoon dredge project moving forward sooner than it was slated for. In response to Terry,the parking numbers were down and Clock said the derby numbers were likely down,which she attributed to weather. Clock felt it was pretty amazing the sales they had this year considering the weather they endured. City Manager's Report, City Manager Jim Hunt stated the following purchase orders between $10,000 and $50,000 were approved by the City Manager since the last council meeting: Public Works ordered four more aerators for the Lowell Point Sewage Lagoon,therefore requesting a $38,000 purchase order for Clearblue Environmental, a purchase order was issued to McKinley Fence for $31,000 to enclose the staging area for the contractors while removing the sludge and City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 385 making repairs at the lagoon, $20,330 to AC Electric for warehouse wiring,and$30,000 for annual Alaska Railbelt Cooperative Transmission and Electric Company (ARCTEC) dues. Public Works continued to monitor for hydrogen sulfide (H2S) at Lowell Point and was applying calcium nitrate into the system at a rate of 10 pounds per day. Additionally, Public Works ordered 400 pounds of additional calcium nitrate and continued to report all Lowell Point Sewage Lagoon activities to three divisions of the Alaska Department of Environmental Conservation. The Finance Department was working with the Alaska Municipal Bond Bank to facilitate the refinancing of the 2005 and 2006 Harbor Improvement Bonds, with the expectation of saving in excess of$30,000 per year in debt service costs due to lower interest rates. The general ledger and accounts payable systems from the new financial accounting system had been installed.The Finance Department would soon bring criteria to the City Council to go to bid for auditing services. Harbor staff was busy during the Silver Salmon Derby. In accordance with SCC 6.10.120.E, the Harbor Department was soliciting professional engineering services to design B, C, S, and G Floats Replacement Project. The evaluation criterion was announced as follows: • Statement of Qualifications = 50 Points • Detailed Draft Scope of Work= 30 Points • References = 10 Points • Clarity of Proposal = 10 Points Please note that for this solicitation only, the factor of cost was not a criterion, per the Harbormaster's recommendation to the City Manager(in accordance with SCC 6.10.310 A). iras Hunt reminded the public to please not use the warehouse parking or pathway to the ball fields as a shortcut, as it was still a construction zone. If council would like to tour Chugach's new power plant, please let the Electric Department know. In the Library/Museum, Valarie Kingsland started at the new director on August 11, 2014. In response to Butts,Hunt stated they had not filled the position for the Project Manager yet, but were speaking with a candidate who was considering the offer. He would know the candidate's decision by mid-week. Terry requested council receive notifications on the City Manager's schedule as to when he would be out of town or out of the office. Terry noted council received a disturbing letter from a parent in the community and thought they needed to talk about intolerance for violence in the workplace. She requested any updated copies on personnel procedures regarding workplace violence. Alaska Municipal League Summer Session Travel Report.Bardarson stated she traveled to Nome August 12-15,2014 to attend the summer session and attend an Alaska Mayor's meeting. Wasilla Mayor Rupright sponsored a resolution to have Department of Transportation projects reviewed first by local planning authorities prior to department approval. Attendees listened to a presentation called "Big Marijuana, Big Mistake" and the Alaska Conference of Mayors passed a resolution opposing the legalization of marijuana.Ray Gillespie and Kathie Wasserman gave reports •• on state and federal issues including continuing revenue sharing. Other topics discussed were the Public Employees Retirement System (PERS) and renewable energy sources. City of Seward,Alaska City Council Minutes August 25, 2014 Volume 39, Page 386 Other Reports, Announcements and Presentations Update on Seward Community Health Center Operations by Executive Director Patrick Linton. PUBLIC HEARINGS—None UNFINISHED BUSINESS—None NEW BUSINESS Resolution 2014-071, Approving Amendment No. 2 To The Management And Operating Agreement Between The City Of Seward And Providence Health & Services To Reduce The Annual Fixed Periodic Fee Based On Carving Out Primary Care Clinic Operations. Motion (Terry/Casagranda) Approve Resolution 2014-071 Finance Director Kris Erchinger reminded council the city had a maintenance and operating agreement which expired in 2018. The first amendment was made to carve out the primary care clinic services. When they asked council to approve the first amendment earlier this year,it was unclear what the financial impact of that would be. This resolution was to reduce the annual fixed periodic fee,best described as an approximation,if the city was to purchase these services in an open market. This included things like IT services, marketing, specific assistance in financial reporting, auditing, health insurance, property insurance, and so on. Erchinger explained how they came up with a figure that would be defensible when looking at the clinic reduction. It was administration's recommendation to reduce by$60,000, or 6.6%. Erchinger also noted utility costs were now being shared with the Community Health Center. In response to Butts, Erchinger noted profits and losses of Providence were felt by the tax payers of Seward. The cost the city was paying for Providence would be reduced by$60,000 by this resolution. In response to Squires, Erchinger stated there was only one similar arrangement of a municipality operating a hospital and that was the City of Valdez, but even Valdez differed from Seward's arrangement. When Providence first came to Seward,the city leased the building and lost a lot of money. The state brought in a consultant to figure out how health care could be sustained in Seward and it was determined if they combined the facilities(Providence and Wesley Rehabilitation and Care Center) it would create a sustainable health care system. The city no longer leased the building,but instead co-located both facilities and hired Providence to manage the two facilities on its behalf. Erchinger confirmed Providence had agreed to the terms of this contract amendment. Motion Passed Unanimous Resolution 2014-072,Authorizing The City Manager To Enter Into A Construction Contract With Orion Marine Contractors, Inc. In An Amount Not To Exceed $6,150,900 For The City of Seward,Alaska City Council Minutes August 25, 2014 Volume 39, Page 387 Breakwater Rock Production Project At The Seward Marine Industrial Center And An Additional $615,090 As A Project Contingency. hum Motion (Keil/Squires) Approve Resolution 2014-072 Long stated the bid amounts were included for council review, and were close to the engineer's estimate. He explained why it was in four parts with a base part and three additional options. Quarry analysis had been done for the project,but they did not spend the$500,000 to do an in-depth analysis for a recovery rate as part of a bid package, so that cost was transferred to the bidder instead. With the four part bid,it put the onus on the contractor to produce the first part of the rock, then re-assess the project, and trigger the next add on when ready. This was an aggressive contract, and the city would like all of the rock produced by spring of 2015. This was just the rock production only for the breakwater project. It took a long time to make the rock, so staff was being prepared for the breakwater project next year. In response to questions, Harbormaster Mack Funk stated the signed contract was not in the council packet, but he had a signed copy with him. Motion Passed Unanimous Other New Business Items Discuss the mobile and roving vendor policy or schedule a work session to discuss the mobile and roving vendor policy.(Clerk)City Clerk Johanna Kinney stated this policy was coming back to the council for review and any changes per their request earlier in the summer.Kinney stated they did not receive any vendor applications for 2014, but a lot of businesses showed interest. After discussion, council directed the clerk to leave the policy as it was created at least for the next business year. Discussion on scheduling a work session with the Alternative Energy Group. (Casagranda) Casagranda was very excited when Alternative Energy Group member Mike Insalaco came forward with an update on energy and she didn't want to lose momentum on this topic. She hoped council could schedule something with this energetic group.The topic could be alternative energy in Seward. Terry recalled they were working on an alternative energy plan or policy for the City of Seward. Bardarson agreed she did not want this to lose momentum either.Long said the city was working on a proposal to gather perspective on alternative energy, specifically a demonstration project to pick the smallest area with the highest likelihood of success. Administration was currently working on this and confirmed it to be geothermal. Council scheduled the work session for October 27,2014 at 5:30 p.m. INFORMATIONAL ITEMS AND REPORTS—None COUNCIL COMMENTS Keil was happy to see Senator Micciche and Representative Chenault were here to listen to Lowell Point Sewage Lagoon concerns and also for them to see the city using the other state funds received for the SMIC Expansion Project. City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 388 Terry welcomed the senator and the representative for attending tonight's meetings. She noted school was in session and cautioned the public to be careful on the streets. She reiterated the city should have a zero tolerance for workplace violence and for abuse of minors. The city and community did not stand for that. She wanted to make sure policies were in place stating such. Butts thanked Micciche and Chenault for being here tonight.He congratulated and thanked Gary Seese for applying to the Planning and Zoning Commission.He noted he would not be present for the September 22, 2014 meeting. Butts wanted to make sure everyone in Lowell Point and the community had his contact information and stated his cell phone number for people to call him. He was there for comments and concerns and encouraged people to call him. Casagranda echoed thanks for Seward's legislators showing up tonight and Loren Leman for being here as well. She agreed there should be no tolerance of violence in the city. Casagranda was really hopeful that the Lowell Point Sewage Lagoon dredging project could be moved up earlier. Squires congratulated Gary Seese on his appointment to the Planning and Zoning Commission and felt he would be a good addition. He thanked the representative and senator for coming tonight. Squires was sympathetic to the problems at Lowell Point.He wanted the issue fixed, but also fixed correctly and didn't feel the city should be paying for yet another consultant or study. Squires stated he would rather put the funds towards getting it done. This was a progressive council that wanted to get things done. As far as Lowell Point was concerned, they had the word of the council that this would get fixed. Darling thanked the legislators who came to support Lowell Point and the city tonight. She thanked all members of Lowell Point who came tonight and said council would work with them to get the sewage lagoon fixed. It shouldn't have gotten to this point,but it did. She congratulated Gary Seese. Hunt thanked Chenault and Micciche for attending tonight.Administration looked forward to correcting sewage lagoon problem. Long said the group Clock was talking about in her report was part of the Arctic Council. The United States would assume the chair of this council for the next two years; it was the best opportunity on arctic policy developments. It was an honor to have Seward considered as a site selection for a future conference.Long stated the Lowell Point Sewage Lagoon was a low-tech,low- maintenance facility and needed to be a medium-tech, medium-maintenance facility, which was administration's goal. The lagoon needed to be emptied; otherwise any other repair would just be a temporary repair. Bardarson thanked Chenault and Micciche for coming and for their financial support. It would be difficult for Seward to pay for these projects on their own and she thanked them for their efforts in securing funding for the lagoon. CITIZEN COMMENTS City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 389 Paul Paquette expressed thanks for council's concern for the welfare of residents and their guests at Lowell Point. It would relieve them to not have any more smell out there, their main concern was the odor. Paquette looked forward to the odor dissipating and not being bothersome to them or their customers. Sue Lang of Silver Derby Campground stated she had one reservation for Labor Day weekend. She hoped completion of the project would occur prior to March 1, 2015. Loren Leman added last week the city asked him to talk to the contractor to answer what they could do regarding odors during removal of sludge.Merrell Brothers relayed they dealt with this situation on a regular basis and they would continue to aerate during the removal process. Often odors during removal had to do with the overload of the lagoon. Leman also followed up to the question of what were other techniques to not pump through the lining. Merrell Brothers stated they were very conscious of that and if the lining was damaged it would be their responsibility to repair it. Regarding the schedule of the project, that was more difficult to move up, but not impossible. He encouraged council to engage with representatives from Merrell Brothers at their September 8,2014 meeting. He thanked the council for their instructive participation in the process. Lynda Paquette thanked the senator and representative for being here tonight. They were living in catastrophic conditions since July of this year,but the issue started really last spring. Last fall they met with the Kenai Peninsula Borough Mayor, who instructed them to contact the Department of Environmental Conservation. In November, she asked the city be proactive in resolving this problem. Today there was some proactivity, but between then and now staff hadn't M.. been proactive and she had felt resistance to even being listened to. Paquette appreciated Butts' sharing his phone number tonight and really felt it was a step in the right direction and appreciated his efforts. She felt like tonight they were all on the same page and felt encouraged. Paquette noted this had not been easy for any of them,and to please not forget them. She clarified that the statement that there should not be houses surrounding sewage lagoons was not true,this was typically not the case in this current day. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Terry thanked Leman for his update. Butts stated he would be representing the City Council at a Kenai Peninsula Economic Development District meeting. Casagranda felt the Lowell Point Sewage Lagoon issue was not being studied to death. Everyone knew this problem was coming and the citizens of Lowell Point deserved a special meeting tonight. The issue was moving forward, and she felt like it was a productive meeting. ADJOURNMENT The meeting was adjourned at 8:47 p.m. lava City of Seward, Alaska City Council Minutes August 25, 2014 Volume 39, Page 390 Nal %a if /LAT_ To anna Kinney, C an Bardarson Ci y Clerk Mayor (City Seal) i�I3II&&&&& s • SEAL : • ti TF OF AIrt'o 's 1/ II IIIIfi11l1q g