HomeMy WebLinkAbout09082014 City Council Minutes City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 391
CALL TO ORDER
The September 8, 2014 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Lieutenant 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 Dale Butts
Iris Darling
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
Will Earnhart, City Attorney
air.
Absent—David Squires
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Scott Ogan was in the wastewater treatment business and noted some of the work his
company had done in other places. He stated he would be willing to work with Merrell Brothers to
help reduce the work on the dredging and disposal of the sewage at Lowell Point. Ogan discussed
some energy and maintenance savings costs that could be utilized.
Lynda Paquette knew the council was poised to accept the sludge dredging contract with
Merrell Brothers and showed concern on the bid submitted, specifically lack of concern of human
life and the timeline of the project. She requested the bidders submit timelines for this project.
Paquette thought the city should leave the liner of the lagoon alone for fear of something going
wrong and it becoming damaged.
Tim McDonald stated he had been following the lagoon issue and noted the lack of strategic
planning. Perhaps the lagoon shouldn't be there anyway. It was a serious subject and throwing
money at it wouldn't make it go away. McDonald stated the measures that had been taken were
management by emergency.
Karl Van Buskirk thanked the council for their consideration for the well-being of the
people that lived out at Lowell Point. There had been many reports on declining reviews of the
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 392
tourism season and felt it was unfair for residents and businesses to have to bear the burden of a
failing wastewater treatment facility.There were some glaring concerns with the proposed dredging
contract for these people, including the schedule. He did appreciated council's concern and
understanding of the gravity of the situation.
Sue Lang owned a campground abutting the treatment facility at Lowell Point.The numbers
were not in, but it looked like her business didn't break even for the summer season. Residents of
Lowell Point had been inhaling hydrogen sulfide for 60 days. She has a terrible cough and a lot of
people were not feeling well. She thanked council for the time put into this project, and hoped they
could come to a beneficial remedy for everyone.
Tom Miller of Lowell Point noted the number of guests at Miller's Landing;they had about
35,000 guests come through their facility. A lot of them were Alaskans, and Miller pointed out
Lowell Point helped represent the tourism industry of Seward.He hoped council would keep that in
mind when considering the dredging contract that would be finished no later than June 15, 2015.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda
Mayor Bardarson requested an agenda item be added under Special Orders, Presentations and
Reports to acknowledge the State Legislature's In Memoriam Proclamation for the late Vanta Shafer.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2014-075, Requesting The Alaska Board Of Fisheries Hold Its 2017 Upper Cook
Inlet Finfish Meeting On The Kenai Peninsula,And Approving Kenai Peninsula Borough And
Municipalities Joint Resolution 2014-01.
Appoint Sandie Roach' to the Historic Preservation Commission with a term May,2015.
Direct staff to send out a letter of support from the Mayor on Chugach Electric's grant
application to fund assessing Fourth of July Creek as a hydroelectric energy resource.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Formal Introduction of Mural Delegates from Obihiro,Japan
1. Murai Kazunori, International and Domestic Relations Section Manager
2. Shiota Akira, Art Teacher
3. Ikeda Midori, Artist
4. Umetsu Mika, Art Teacher
5. Nosaka Takehide, Calligraphy Teacher
6. Josh Neta, International & Domestic Relations Section Interpreter
7. Hayashi Nobuhide, City of Obihiro Official (arriving 9/12/14)
City ofSeward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 393
8. Natsubori (Anderson) Motoko, Obihiro International Friendship Association
Member (arriving 9/12/14)
9. Yamazaki Chizuko, Obihiro International Friendship Association Member
(arriving 9/12/14)
Proclamations & Awards
Certificate of Appreciation for citizens Ronn Hemstock,Jill Hemstock and Stephanie
Cronin for ensuring the safety of others in the community.
State Legislature's In Memoriam Proclamation for the late Vanta Shafer.
Borough Assembly Report, Sue McClure stated the assembly met September 1,2014 and
accepted $6 million worth of state grant money, which was their annual formal legislature
acceptance. $500,000 went to the Seward Bear Creek Flood Service Area Board for flood mitigation
and $545,000 was accepted in revenue sharing from the state which went to the unincorporated
communities of the borough. McClure noted the state was very generous to the borough. The
assembly passed an ordinance that extended tax exemption filing deadlines for senior citizens and
veterans with the hopes there would be fewer late filings.The Borough Assembly passed a resolution
similar to Resolution 2014-075 on the council's agenda tonight.The annual community meetings to
discuss revenue sharing and projects would take place September 27, 2014. The assembly's next
meeting would take place in Homer.
itr. 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:
$11,530.56 to NC Machinery requested by the Harbor for loader repairs; $16,850.00 to Keco Pump
& Equipment requested by the Harbor for pumps for the sewage waste from vessels; and $10,245
listed under Electric report and previously approved by Council as part of the Electric Warehouse
Project.
Administration reported the project manager position had been filled and Rick Wise would
be a great asset to the city. He had strong experience in water and wastewater projects. Wise would
be starting the third week of September and would be introduced to council shortly thereafter.
In Public Works, staff in the water/wastewater department were monitoring, testing, and
documenting our wastewater lagoon performance. They were beginning to see improvements and
were continuing aggressive odor control measures. Periodic saturation of calcium nitrate at Lowell
Point and continual addition of calcium nitrate at the Lift Stations would continue. Thirty-year
employee Rex Davis of the Street Department indicated he would be retiring at the end of
November.
In the Parks and Recreation Department, the After School Program had increasing
attendance. Sports and Recreation staff was preparing for fall adult sports leagues and Parks
Maintenance and Campground crews were busy with a high surge of campers, due to good weather
...• and great fishing. So far this season the campgrounds sold 18,400 camping permits with revenue
totaling $530,000, not including caravans.
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 394
The Electric Department reminded council if they would like to tour Chugach's new power
plant to please let them know.The department was developing a request for power from the Railbelt
Utilities, other than Chugach Electric. Although the city had a contract with Chugach Electric for
power and a great relationship with them,the department was taking advantage of the opportunity to
price shop.
In the Harbor Department,the restroom was finished at the Seward Marine Industrial Center
(SMIC). The travelifts on both sides of the bay had been busy and the wash-down pad was being
used heavily.The delivery date for the new 330 Ton Travelift was late February,with assembling to
begin the 1St week of March, 2015.
Long recapped the tsunami warning system that went off unexpectedly last week. Long felt
the city needed better communication with all agencies. Social media worked well with accurate
information clarifying a false alarm had occurred. The announcement following the alarm of tuning
to a local radio station was frustrating because nothing was on the radio in Seward.The borough was
considering deleting that phrase from their siren alarm announcement.Long emphasized what didn't
work well was calling into the city's dispatch services, who were completely overwhelmed and
overused. Long encouraged everyone to have a personal evacuation plan.
In response to Butts, Hunt stated the city did not have a charge for the RV sewage dumping
station, but there were plans to do so. Darling requested information on how many youths were
spending time at the Rec Room.
Amend the agenda to add the following
(Terry/Casagranda) g g
under "Other New Business": Schedule a
Work Session to review the 2015 local,
state, and federal legislative priorities.
Motion Passed Unanimous Consent
City Attorney's Report,City Attorney Will Earnhart stated briefly reviewed the structure
of the City Council. A lot was covered in the code and charter. Seward City Code 2.10.090 stated
council was not to interfere with administrative service and personnel matters.The reasoning for that
was they hired the City Clerk, City Attorney, and City Manager for their expertise. It was important
for council to ask questions,but to not micro-manage administrative duties of the City Manager.He
advised them to be careful in that regard and to give wide direction. Admittedly, there were gray
areas, but to be very aware of this structure. It had been a busy month for the attorneys and
administration. Issues were being dealt with accordingly. Terry asked if it was in council's purview
to keep apprised of anything related to the city. Earnhart confirmed it was in council's purview but
any personnel matters should be discussed in executive session. Further, he stated it was council's
duty to request they be made aware of things regarding the city. Keil thought that was very contrary
to previous direction given by the former attorney;they were told in the past that council was not to
get involved with personnel matters. Earnhart clarified council shouldn't be involved in personnel
matters regarding hiring and firing staff,except for the clerk,attorney,and manager—it came down
to the performance of their appointed officials.
Other Reports, Announcements and Presentations
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 395
Providence Seward Medical Center Quarterly Update by Joe Fong.
Imo
Quarterly Report by the Port and Commerce Advisory Board.
Update on the Mariner's Memorial Project.
PUBLIC HEARINGS
Resolution 2014-073,Authorizing The City Manager To Enter Into A Lease Amendment With
Harmon Properties LLC For Lot 3, Block 3 Fourth Of July Creek Subdivision, Seward
Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97-27 Seward Recording
District, Third Judicial District, State Of Alaska.
Motion (Terry/Casagranda) Approve Resolution 2014-073
Long stated the lessee proposed to purchase the land currently being leased. Council gave
direction to not pursue a sale at this time, so this was an alternative to lease the land for a longer
period of time. He appreciated Mr. Harmon coming back with this request and felt Harmon was a
good long term tenant to enter into a longer lease with. It was consistent with land use plans and
other policies of the city.
Notice of the public hearing being posted and published as required by law was noted and the public
ism hearing was opened. No one appeared to address the Council and the public hearing was closed.
Casagranda asked how many nonstandard leases like this existed in the city.Long said he was
unaware,but he knew the standard lease term of 20 to 30 years was traditional in Seward,but leases
could be for a longer term.
Butts wondered how many SMIC leases were in the 99 year range. Long said this would be
the first one.
Keil asked if other people with leases could request longer leases, Long confirmed they
could.
Bardarson requested there be some kind of performance clause incorporated in future lease
agreements.
Motion Passed Unanimous
UNFINISHED BUSINESS - None
NEW BUSINESS
�.. Resolution 2014-074,Authorizing The City Manager To Enter Into A Contract With Merrell
Bros.,Inc.For An Amount Not To Exceed $3,988,530 For The Sludge Removal And Disposal
At The Seward Marine Industrial Center(SMIC) And Lowell Point Wastewater Treatment
City of Seward,Alaska City Council Minutes
September 8, 2014 Volume 39, Page 396
Facility (LPWWTF), And Appropriating Funds.
Motion (Terry/K eil) Approve rove Resolution 2014-074
Hunt said this contract had been pursued for a long time now. The city had secured funding
and intended to enter into a loan for additional funds,as well as to use state legislative funds for this
project.
By unanimous consent, council suspended the rules to allow Dustin Smith from Merrell
Brothers to speak and answer any questions from the council.
Keil said she reviewed the company's application and found it to be very comprehensive.
Butts said they've discussed a possibility to change the contract to include odor control prior to
dredging and asked if Merrell Brothers could accomplish odor control in 30 days. Smith said there
were many factors to consider. There was likely odor control needed for the matter coming in and
control for the matter on the bottom of the lagoon (sludge). Smith stated Merrell Brothers was not
the company to use for matter coming into the lagoon. They could remediate the bio-solids on the
bottom by injecting chemicals which would help with the odor. There would be some unsubstantial
added costs for that. In response to Butts, Smith stated their company could accomplish this if there
was a change order to the contract, and Merrell Brothers would have to work with a subcontractor,
but it was possible.
Terry asked if part of the sludge removal would be an inspection of the liner. Public Works
Director W.C.Casey said it was just good business practice for something that had wear and tear to
be inspected,especially since it had not been inspected for the last 22 years.They don't want a tear in
the liner of the sewage lagoon, so it would be a good measure to inspect the liner when the sludge
was removed.
Terry thanked the contractor for coming tonight. She noted it was standard to dredge the
sludge on the bottom and she confirmed with Smith they were very conscious of not damaging the
liner and would use extreme care.
Hunt addressed the timeline of the project and noted the controls for mobilization. Smith
noted they do this work all over the country in many climates.For this project,the weather had to be
above freezing, which was a concern for the timeline. The equipment would be coming from the
lower 48 and there were some jobs the equipment was reserved for prior to beginning on the Lowell
Point Sewage Lagoon. The permitting process with the Department of Environmental Conservation
(DEC)and was a lengthy process. In response to questions,Casey did not foresee the liner caving in.
In response to Bardarson, Smith said they were prepared to mobilize their equipment prior to
temperatures coming above freezing,so as soon as temperature allowed for it in the springtime,they
could start work immediately. Merrell Brothers intended to work 24 hours, 6 days a week to
complete the project as quickly as possible. With sewage lagoons,it was difficult to determine how
much material was actually there. The initial work that had been done to date was about as good as
could be done. They were prepared to complete the project before June 15, 2014.
Casagranda said Seward mostly dealt with rain in the winter time,not freezing temperatures.She
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 397
didn't foresee the winter being below freezing in March. The numbers run on the sludge lagoon were
changed to be significantly lower in volume, and asked how Merrell Brothers felt about going into
the contract not knowing how much sludge was in there and what were they going to do if there was
more sludge than anticipated. Smith said when considering the temperatures, they looked at
averages. He stated he could not afford to send up crew and equipment simply to wait on
temperatures to rise. Merrell Brothers would be mobilizing equipment early spring 2015, and if it
was warmer than average, they could start earlier. The equipment the company had for this project
would be available as soon as sail dates allowed, which would be a couple months ahead of the
project.
In response to Darling, Smith stated dredging in October and November was difficult with
the equipment being in use this fall and also factoring in the lengthy permitting process with DEC.
Smith assured council they would start right away for land application permits,which typically took
60-90 days. Both those things would prevent them from starting this fall. In response to Darling,
Smith said the sludge was charged by how much was removed,so if more needed to be removed than
authorized in the contract, council would need to authorize a change order.
Terry understood this project was bid by volume and changing the scope of the project such
as taking out the SMIC portion of this project would force the entire project to be re-bid. She
emphasized how much the city needed to stay on top of odor control. She was in favor of voting for
this resolution, and stated there were other options to pursue in conjunction with this contract.
Hunt said there was a reduction in the loading and odors because the temperature had
61111 dropped and less people were in town. Darling requested the city continued to add calcium nitrate to
the lagoon now they knew it was a good temporary solution.
Casagranda said she was not in favor of an April 1, 2015 start date and would rather look at
the technology presented to them tonight. She thought this plan was detrimental to the Lowell Point
business community.
Motion to Postpone (Darling/Casagranda) Postpone Resolution 2014-074 to the
September 22, 2014 meeting.
Earnhart said the procurement process was followed correctly and any new discoveries were
not new enough to explain why vendors couldn't have bid during the public bid process. If they
didn't pass this resolution and instead wanted to utilize other technologies,the project would need to
go through the bid process again.He cautioned council that not accepting the bid negotiated might be
subject to dispute.
Bardarson said approving this resolution didn't mean the city couldn't do odor remediation in
the meantime and expressed her intent to move forward with the contract.
Darling clarified odor remediation wouldn't even be part of this bid; Earnhart agreed it
appeared to be a separate part of the project.
In response to Casagranda,Earnhart noted postponement wouldn't be an issue,but deciding
to sole source to someone else may be subject to litigation.
City of Seward,Alaska City Council Minutes
September 8, 2014 Volume 39, Page 398
Motion to Postpone Failed Yes: Casagranda
No: Darling,Terry,Butts,Keil,Bardarson
Main Motion Passed Unanimous
Other New Business Items
Discuss Seward Marine Industrial Center(SMIC)electrical infrastructure needs and options.
(Hunt) Hunt stated this agenda item wouldn't be necessary at this time and requested council give
the SMIC Development Project more time to develop.Terry thought electric infrastructure needs and
option should be implemented in the SMIC development plan that was coming forward. She hoped
Alaska Industrial Development and Export Authority(AIDEA)could make recommendations on this
topic and requested recommendations to review.
Schedule a Work Session to review the electric rate study for September 22,2014 at 5:30 p.m.
Schedule a Work Session to review the 2015 city, state, and federal legislative priorities.
Council scheduled the work session for September 29, 2014 at 5:30 p.m.
INFORMATIONAL ITEMS AND REPORTS
Quarterly Report by the Planning and Zoning Commission.
Nominations for the 2014 Historic Preservation Award due September 30, 2014.
COUNCIL COMMENTS
Keil welcomed the Obihiro artists. She stated she would be gone September 9—18,2014 this
month. The Alaska Historical Society and Museums Alaska joint conference was coming up. The
Seward Music and Arts Festival was also coming up and they needed volunteers. She attended the
Founder's Day celebration for Seward and noted the event was well attended.The CROP Walk was
also a success. She attended a Community Health Center coordinating committee meeting,where the
topics were budgeting and the need for more space. She hoped people could come out for the
upcoming blood drive.
Terry stated Tuesday was the Flood Risk Informational meeting and next Thursday there was
a meeting on the airport master plan. On September 10,2014 the Seward Recreation Committee was
meeting.A Mexican Navy training ship was coming to Seward on September 15-19,2014 and would
be providing tours. She thanked all the volunteers on committees. The community was run by
volunteers and she thanked them for their service. She requested administration provide
recommendations at their first November meeting on what would be done for odor control so it
doesn't drop off the city's radar. She requested November so that the new project manager could get
settled and familiar with the project.
Butts thanked everyone who worked on the Mariner's Memorial. He thanked those from
Lowell Point who attended the meeting tonight and congratulated citizens Ronn Hemstock, Jill
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 399
Hemstock and Stephanie Cronin for their commendable work. He recently attended a Kenai
Peninsula Economic Development District meeting(KPEDD)and noted the organization was trying
li... to get their name out there a little more. Butts reminded the public there were still two spots open on
the Planning and Zoning Commission.
Casagranda thanked Sandie Roach' for her Historic Preservation Commission application
and for her community involvement. She reiterated to administration to keep bringing the issue of
odor control at the sewage lagoon to the council. Sooner than November, was her preference.
Casagranda hoped administration would give direction to the contractor to have a large amount of
outreach to the residents of Lowell Point with regards to this project.
Darling reiterated Terry and Casagranda's comments and wanted administration to explore
advanced technology that ate sewage lagoon sludge in the meantime. Darling said Pat Williams
would be 105 this month and thought that deserved acknowledgement.
Bardarson hoped the issue at Lowell Point would be resolved quickly. She thanked those
who volunteered and those who helped take care of each other. Seward was a city that volunteered in
many different aspects and was a very giving community.
Hunt said if people could find the time, to please visit the Peking Restaurant and keep the
owners in their thoughts. He hoped the Great American,Great Alaskan Dave Squires felt better soon.
Long stated the Department of Commerce, Community, and Economic Development
,,. (DCCED) was reviving a publication called Quarterly Economic Indicators, and was requesting
KPEDD's help with the publication.
CITIZEN COMMENTS
Tim McDonald wondered if Pat Williams was the oldest person in the state. He inquired
how much the dredging contract was for. Oxygen was the only thing to really make the odor
disappear and thought the city should double the oxygen injection to the sewage lagoon. McDonald
did not see any strategic planning and the council signed off on an open-ended contract. The city
needed a strategic plan before spending the kind of money authorized this evening.
Scott Ogan said his company had a machine with advanced oxygenation processing and he
would be happy to help the city with odor control. He had a test tank he could use to pump and test
and see the effect on the sludge.He was willing to work with the contractor and/or the city to work to
find the best solution to the problem.
Deborah Altermatt thanked Terry for her announcement regarding the Mexican Navy
training ship, the Cuauhtemoc. They came to Seward in 2005 as well. Members of the community
were trying to pull together some activities and really welcome the crew while they docked in
Seward. The Cuauhtemoc would be in Seward from September 15-19, 2014.
... COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
City of Seward, Alaska City Council Minutes
September 8, 2014 Volume 39, Page 400
Casagranda said she spoke Spanish and could help out with the Mexican ship.
Darling asked when exactly the ship was coming in. Altermatt said it was unknown at this
time.The Chamber of Commerce was involved as well in welcoming the ship.Altermatt said it was
a joint effort so anyone interested could contact her to get involved.
ADJOURNMENT
The meeting was adjourned at 9:37 p.m.
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