HomeMy WebLinkAbout03232015 City Council Minutes City ofSeward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 488
CALL TO ORDER
The March 23,2015 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 Christy Terry
Ristine Casagranda David Squires
Dale Butts Iris Darling
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
William Earnhart, City Attorney
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Tim McDonald, city representative for the Cook Inlet Aquaculture Association, stated he
attended a meeting March 21,2015 and provided the annual report to administration.The association
was working with $4.1 million in their budget for cost recovery. A bill was introduced to ban set
netting in Cook Inlet which was initiated by sport fishermen and was a very political topic. The
group met with United Fishermen of Alaska and the Tyonek Tribal Conservation District.He noted
Andy Mezirow was appointed to the State of Alaska Board of Fisheries. There would be an open
house for the opening of the Port Graham Hatchery later in the year.
Paul Paquette said it was getting close to April and residents of Lowell Point were getting
worried that the sewage lagoon dredge and disposal project was not going to get done before the
summer season began. He drove by the Seward Marine Industrial Center (SMIC) lagoon and it
appeared it was getting drained down. Paquette was concerned SMIC would be the first priority in
the sewage lagoon dredge and disposal project and hoped council would encourage the Lowell Point
Lagoon to be dredged first.
City of Seward, Alaska City Council Minutes
March 23, 2015 Volume 39, Page 489
Orson Smith introduced himself to council for consideration tonight to be the city's
representative on the Prince William Sound Regional Citizens' Advisory Council(PWSRCAC).He
first came to Alaska in 1973 and moved to Seward about ten years ago as his retirement community.
He retired from the University of Alaska Anchorage last May and had only been a full time Seward
resident for about a year now. He had been an engineer for the United States Army Corps of
Engineers, working on the planning and design for harbors, and noted coastal engineering was his
specialty. Smith then went to the University to teach civil engineering on port and coastal
engineering where he became involved with the RWSRCAC. He stated he would be honored to
represent Seward on this council and would be careful to seek council's guidance and represent their
concerns and wishes.
Susan Lang, a resident of Lowell Point and manager of the Silver Derby Campground and
RV park, stated residents were affected by the odors from the lagoon. Those in her campground
smelled the odors constantly and urged the council to make sure the dredging began at Lowell Point
first. It was the city's lagoon and the city's responsibility to take care of this. Lang wanted to know
who was going to be on site to tell her guests to please be patient and understanding.
John French asked for consideration to the city seat on the Prince William Sound Regional
Citizens' Advisory Council. He thought it was important to realize that although the name of the
entity was Prince William Sound, it covered the whole area affected by the Exxon Valdez Oil Spill
which included waters outside of Resurrection Bay. His letter of application was before them in
tonight's packet. French felt he was well qualified for the position. He had lived in Alaska for the
last 34 years and worked for the University of Alaska Fairbanks School of Fisheries and Ocean
Sciences. He had previously served on this seat for a ten year period and was asked if he would be
willing to come back to the board, so he was before them tonight because he was willing. French
stated it was important to have the right body of knowledge on the board.
Wolf Kurtz thanked council members Terry and Keil for bringing forward Resolution 2015-
022 on tonight's agenda. He invited the public to the open house for the Seward Public Radio
station. It would take place at the Seward Chamber of Commerce on March 25, 2015. Kurtz noted
they hoped to be on air by April.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda
With no objection from council,Council Member Terry added Resolutions 2015-021,2015-022,and
2015-024 to the consent agenda.
With no objection from council,Council Member Darling added Resolution 2015-025 to the consent
agenda.
With consent of the council, Long added item under other new business to send a letter of support
from the Mayor to the Governor's Office and the Alaska Legislature in support of the confirmation
of Robert Ruffner to the Alaska Board of Fisheries.
City ofSeward,Alaska City Council Minutes
March 23,2015 Volume 39, Page 490
Bardarson requested the unfinished business item to discuss the State of Alaska's Department of
Transportation Building in Seward be postponed to the May 25,2015 meeting(Clerk's Note:actual
meeting date was May 26, 2015 due to the Memorial Day Holiday).
Bardarson added an item under other new business to see if a member of council would represent
Seward on March 28,2015 in Soldotna at the Climate Change Conference sponsored by the League
of Women Voters and the Kenai River Campus Student Union.
Keil added an item under other new business to give guidance to administration on moving forward
on SCHC/Providence expansion project and grant opportunities.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the March 9,2015 Regular City Council Meeting Minutes and the March 11,2015
Special City Council Meeting Minutes.
Non-Objection to the transfer of Liquor License from the Marina Restaurant to Alaska
Seafood Grill.
Non-Objection to the Liquor License Renewals for the American Legion Post #5, Christo's
Palace, Tony's Bar, Tony's Liquor Store, the Yukon Bar, Ray's Waterfront Bar & Grill,
Apollo Restaurant, Oaken Keg #2728, Gene's Place, Railway Cantina, Chattermark, and
Woody's Thai Kitchen.
Resolution 2015-021, Approving Amendment#4 To The Employment Agreement With The
City Clerk And Appropriating Funds.
Resolution 2015-022, Urging The Federal Communication Commission To Approve Kenai
Educational Media, Inc's Application For Licensing Of Seward Broadcast Facilities. (Keil,
Terry)
Resolution 2015-023, Adopting The Port And Commerce Advisory Board Priorities From
March 2015 To April 2016.
Resolution 2015-024,Accepting Funds From The Alaska State Library For An Early Literacy
Playspace Mini Grant In The Amount Of$1,539.00 And Appropriating Funds.
Resolution 2015-025, Authorizing $47,400 For The Purchase Of Downtown Street Light
Replacement Bulbs And Ballasts To Be Paid From The Capital Acquisition Fund, And
Appropriating Funds.
SPECIAL ORDERS,PRESENTATIONS AND REPORTS
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 491
Proclamations & Awards
Proclamation Honoring the 100th Anniversary of Urbach's.
Badge Pinning Ceremony in recognition of one year of service on the Seward Volunteer
Fire Department.
Chamber of Commerce Report. Cindy Clock reported at the chamber's last meeting,the
Board of Directors chose their number one priority: to secure an economic development specialist
working in partnership with the city. The board would be looking for suggestions from council and
administration. The Energy and SMIC groups would meet March 25, 2015. The Alaska Industrial
and Development Export Authority (AIDEA) was contracted by the city to construct a plan for
SMIC. AIDEA hired the company Arcadis. Judi Adrijanoff worked for Arcadis, was from Seward
and has worked on projects including the new library museum and the Alaska SeaLife Center.The
Chamber was focusing on their next avenue of economic development which was a business
retention and expansion program. The State of Alaska had purchased a business retention and
expansion program called Executive Pulse. This program was initially free to every community in
the state.
City Manager's Report.Jim Hunt reported the following purchase orders between$10,000
and$50,000 were approved since the last council meeting:$10,259.62 to Different Strokes for repair
on a lineman truck and$13,398.00 to Power Solutions for batteries to support the emergency start of
the switch gear for Fort Raymond generators.
The Electric Department had released a Request For Proposals for the meter reading contract.
The scoring criteria was reported as follows:
Understanding of Work: 25% or 25 points
Qualifications: 25% or 25 points
References: 25% or 25 points
Proposal Price: 25% or 25 points
Total: 100% or 100 points
Public Works Director W.C. Casey gave a sludge removal update on the sewage lagoons.
Merrell Brothers Superintendent Dustin Smith arrived in Anchorage today and Casey planned to
meet with him tomorrow. At the direction of Merrell Brothers, crews began draining the Spring
Creek Correctional Center sewage lagoon. The city had to wait until approval was given by the
Alaska Department of Environmental Conservation (ADEC) on the disposal plan. The equipment
would be mobilized this week and Casey said he would be able to give a more definitive schedule
after he met with the vendors tomorrow.The U.S.Army Corps of Engineers called Casey to let him
know they were coming tomorrow to go in the Lowell Canyon Tunnel and it would be 4-8 weeks
before he received an official report from them on this visit.
Keil asked why the SMIC lagoon was being drained first. Casey had problems with surface
aerators at Lowell Point because of freezing conditions. Because of this, Merrell Brothers asked to
City of Seward,Alaska City Council Minutes
March 23,2015 Volume 39, Page 492
drain SMIC first.Darling thought they should be telling the company where they should be starting.
Casey said a contract amendment would clarify that. It was a logistical thing for them with
equipment and hauling sewage. Casey restated he would know more tomorrow when he spoke with
Mr. Smith.
Casagranda would be interested to see what those numbers to amend the contract were
because they owed it to Lowell Point residents to fix their problems. Casey said it would likely take
7-10 days to drain SMIC. Casagranda asked if there was a way to open up the line of communication
to the Lowell Point residents. Hunt said they were doing everything they could and they were
updating council with all the information they had as they received it. Casagranda asked for an
update after these aforementioned meetings tomorrow and just wished they could receive clear
information. Casey said he had not issued a notice to proceed yet. Casagranda wanted to know if a
work session this week would be in order to get an update from the vendor. Hunt was reluctant to
support that as it may appear micromanaging the vendor, to tell them how to do their jobs.
Darling thought that with the contract in place, they should be able to tell the contractor
where to start.Hunt said it was warmer at SMIC than it was at Lowell Point.Casey added they had to
drain the SMIC lagoon and haul it to Lowell Point first anyway.
Long and City Attorney Will Earnhart cautioned council from a legal perspective on what
the terms of the contract were for. Terry said it would be interesting to the public and community to
hear what the definitive schedule was and there was no action they could take at a work session,she
thought the residents would appreciate that. Squires said they'd been over this, but he didn't think
the contractor had enough information as he was just arriving in town so he would like to postpone a
work session for a week, if possible. Bardarson requested any information be sent to the clerk for
dissemination.
Casey said the contractor could not plan to dispose of the waste until permits were granted.
Because of this and other reasons stated,they needed to drain SMIC first,take the sludge to Lowell
Point and then dredge. Casey was of the understanding the necessary permits should be approved by
March 30, 2015.
Council scheduled a work session to receive an update on the sludge removal and disposal
project for the SMIC and Lowell Point sewage lagoons for April 2,2015 at 5:30 p.m.
In response to Terry,Hunt stated the Harbormaster's Office would be re-opening on Sundays
in the next week or two.
Terry stated she had concerns with the aforementioned Request For Proposal criteria being
issued to council after the public notices went out for advertising. She felt the criteria should be
announced prior to advertising.
In response to Bardarson,Long stated the Memorandum of Agreement for paving city streets
had been signed.The next action was to provide the city's match of approximately$267,000 which
would come forward at the April 13, 2015 meeting or earlier at a special meeting.
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 493
Long said the Public Health nurse's office would continue through 2016 and beyond that it
was likely the office would not have a fixed permanent location.Long also stated the Department of
Labor issued a letter today that the operations of the Seward Job Center would continue with
AVTEC staff, which he considered good news. Last Friday a project meeting occurred with Andy
Baker on the city heating project and Long expected council to get a report in the future on Baker's
feasibility study.
Hunt also reported the Fire Department was preparing to notice a Request For Proposals for
the refurbishment of Fire Apparatus Unit#359 and announced the scoring criteria:
Price: 25%
Specs: 30%
Warranty: 10%
Timeline: 15%
References/Like experience: 20%
Total: 100%
Other Reports,Announcements and Presentations -None
PUBLIC HEARINGS
Resolutions Requiring A Public Hearing
Resolution 2015-019,Recommending Kenai Peninsula Borough Approval Of The City Owned
Fourth Of July Creek Subdivision,Seward Marine Industrial Center(SMIC),Raibow Replat;
Creating Four(4) New Lots To Be Known As Lots 2 And 3, Block 4 And Lots 4A-1 And 4D,
Block 7; Located Within The Industrial Zoning District.
Motion (Terry/Casagranda) Approve Resolution 2015-019
Long indicated where the area in question was on the map hung in the chambers.The parcels
were currently under short term lease to Raibow Fiberglass and Boat Repair, LLC, who wanted a
long term lease. This area needed re-platting and surveying and would be sent to the borough for
approval. The proposer complied with all provisions required of the city. This replat determined
specific lots for future long term lease.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared to address the Council and the public hearing was closed.
Terry said this highlighted an issue in the code for a 120 day short term lease: it took longer
to get a plat approved in the borough. She wondered how this worked for the business owner.Long
said it was an awkward piece of the code. It offered no form of succession and he thought it was
intended for much smaller uses,which could likely be met by permit instead.He encouraged people
not to use that piece of the code, if at all possible, until it was rectified.
City ofSeward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 494
Terry asked if that's how the city would handle future development at the Seward Marine
Industrial Center(SMIC),and Long said the city was working on a better plan, such as issuing a use
permit instead of short term leases.
Squires asked if the borough required public access to land locked properties,and Long said
because the lessees needed access, the road would be made wide enough for the Travelift. Squires
thought the Kenai Peninsula Borough required at least a 60 foot right of way. City Planner Donna
Glenz said an exception would need to be asked for to use private roads that already existed at
SMIC.Instead of a public right of way,the city was asking the borough to make an exception to use
the private roads already established. Glenz confirmed this would be the case for other business
interests as well.
Squires said he didn't want to support this because the city was not requiring a subdivision
agreement,which was mandated by the code.The city normally required land owners to enter into a
subdivision agreement,which required the land owner to put in improvements such as utilities and
roads. He didn't understand why the city wasn't adhering to this as well.
Motion Passed Yes: Keil,Darling, Terry, Bardarson
No: Butts, Casagranda, Squires
Other Public Hearing Items (Clerk's Note: For discussion and public hearing only.
Recommended for adoption and an additional Public Hearing on April 13, 2015)
Resolution 2015-020,Authorizing The City Manager To Enter Into An Agreement With The
Kenai Peninsula Housing Initiative (KPHI) Donating Approximately 1.8 Acres Of The
Northern Portion Of KPB Parcel 14734005, Known As Pat Williams Park For The Sole
Purpose Of Developing An Independent Senior Housing Facility Upon Condition Of KPHI
Being Awarded All Other Necessary Funding For The Project Development And Completion.
Motion (Terry/Casagranda) Introduce Resolution 2015-020
Long apologized that administration didn't have a map of that area to show the council. He
stated this was a donation of land with stipulations laid out for the disposal of this property that, if
not met,would require that the land revert back to the city.Long stated he was asked why this matter
hadn't gone to the Planning and Zoning Commission and he stated the commission had given their
recommendation on this issue via their approval of the Municipal Lands Management Plan.
According to the Municipal Lands Management Plan, the recommendation was to not develop on
this property. Because the council was the decision making authority on this kind of land matter,it
was coming to them since the Planning and Zoning Commission already had an opinion on file. He
noted the fiscal note was an estimate only.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
City of Seward, Alaska City Council Minutes
March 23, 2015 Volume 39, Page 495
Steven Rouse,of the Kenai Peninsula Housing Initiative(KPHI), said his organization had
been looking to develop housing in Seward since 2007;the problem had always been land. He was
recently approached by a group of citizens on the idea of senior housing in Seward and was asked for
his input. Together they looked at every possible available parcel that would be large enough to
accommodate one development,and found most possibilities to be too small or too cost prohibitive.
Rouse said this request was patterned after a project in Soldotna. His organization looked at the
possibility of the recently vacated Seward Air Force Recreation Camp,but it would be years before
that land could be used for development, according to city administration. When the Pat Williams
Park property was brought to his attention,he had engineers and architects evaluate the land. They
determined the park would be suitable for the needs of the project.KPHI was requesting enough land
to do Phase I and II of the proposed project and felt the demand for this type of housing was present.
Rouse stated he could answer any questions council or the community had.At this point,they were
just looking for a commitment of land from the city. Rouse thanked the council for their
consideration.
Colleen Kelly was in favor of the housing initiative's idea in Seward,but strongly opposed
the site chosen for it.Many years ago she visited Seward and camped at the proposed site. She spent
money here during her visit and ultimately ended up moving here.Right now this land was dedicated
as park land. Kelly was surprised to learn it was not difficult to change park zones. The area was
generating revenue from camping. Camping fees went to the city coffers and local businesses. The
Parks and Recreation Department stated this area grossed$71,000 a year,including covering wages
paid to those who worked for the department. The city had a lot of underutilized property not
generating any revenue.The Seward Air Force Recreation Camp would be a good possibility,though
not the preferred option. The appraised value of 1.8 acres of city-owned Pat Williams park land
would likely be worth a lot of money. Senior housing might be better located closer to places like the
grocery store. Kelly was worried that the plans for this project would be to take down many of the
trees the late Pat Williams so diligently worked to keep,and which was the reason why the park was
named after her in the first place.
Melinda Maddox stated she often advocated for seniors. She supported senior housing in
Seward, but did not support the location proposed tonight. In 1978, the city donated land for the
Glacier View Apartments, and at the time there was a concern there wouldn't be enough seniors
needing housing.The city applied for senior citizen housing development grants.She was concerned
with finding the right property in Seward for expansion.This proposed site was close to the tidelands
and that could be dangerous. She encouraged council to look at the Municipal Lands Management
Plan, which stated retaining ownership of the Pat Williams Park as a park zone. There were 30
campsites there that brought money to the economy and a safe place to camp.The area also provided
one of only three Americans with Disabilities Act(ADA)accessible sites in Seward.Maddow didn't
think taking away campsites was a good idea. She stated a society was defined not only by what it
created, but by what it refused to destroy.
Kelly Hartz had a personal view of this as she neighbored the property. She felt that it was a
little short sighted of the city to take a piece of park land and turn it into housing. Senior housing was
probably necessary in Seward,but she had an issue of using the property proposed.Hartz looked up
the entire parcel on the borough's website to find its value was appraised at$1.1 million.The piece
City of Seward,Alaska City Council Minutes
March 23, 2015 ' Volume 39, Page 496
the city was considering donated was more than half of that area. She also wanted to bring to
council's attention the tsunami inundation zone created in 2010 which showed three different
scenarios in an event similar or less than the earthquake and tsunamis of 1964, and which
demonstrated this area would likely be inundated with a tsunami wave. Hartz asked the council if
this was a place they wanted to put their senior citizens. She urged people to talk to folks that were
here in 1964 and ask them if that was a location to put their seniors.The other point Hartz wanted to
make was this was park land, which coincided with one of Seward's major industries —tourism.
Changing this area from a park zone would take away from revenue and she thought another piece of
land would be better suited for the community's needs.
Ron Wille questioned the fiscal note in the agenda statement for this resolution. He did not
see anything in the documentation about the taxable status of the property, and he didn't' know if
this proposal would generate any property tax. The location was a concern for him as a resident,
though he supported the idea of a senior housing project. It was a prime piece of unobstructed
waterfront realty. The appraised value didn't surprise him. He concluded by referring to a past
resolution that named Pat Williams Park,stating Williams'phone call stopping the cutting of spruce
trees. It was a nice area to keep park.
Tim McDonald said Pat Williams used to live close to that park.He stated she was recently
named Citizen of the Century and it seemed disrespectful to plan to develop on her park. He
wondered what she would think of this.
No one else appeared to address the Council and the public hearing was closed.
Terry asked if this property would be on the tax rolls if the city donated it for this use. Long
said the organization has offered payment in lieu of taxes(PILT)on the property and that would be
part of the transfer documents which would come in the future.
By unanimous consent,council suspended the rules to allow Steven Rouse to speak on behalf of
KPHI.
Rouse said the rents would be taxable, although as a charitable organization they received
property tax exemptions.He confirmed KPHI would be willing to entertain payment in lieu of taxes
because of this.
Squires asked what other properties of this size had been considered.Rouse said they looked
at the Air Force Recreation Camp in addition to others,but they turned out to be too small.For Phase
I,they needed a minimum of 7,000 square feet.KPHI was going to need a minimum of 0.6 acres for
borough approval. The proposed plat before council was a preliminary drawing. He noted Pat
Williams' family supported this concept. Terry added the family also submitted a follow up letter
saying they weren't opposed to other properties.
Squires asked how big the city-owned land on First Avenue was that was recently taken over
for tax purposes. City Planner Donna Glenz estimated 12,000 square feet. Rouse said it wasn't
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 497
large enough.Darling asked if they looked at the Boulder Field property.Rouse said it had not been
mentioned to him so he couldn't speak to the suitability of it at this time.
Terry said hearing all of the community concerns, all echoed support of the project,but the
location appeared to be an issue, and wondered if KPHI was willing to go back and look at other
properties. She feared if not, it could kill the project. Rouse said as it stood now, in order for the
project to go forward,KPHI needed to provide evidence they had site control for preliminary Alaska
Housing Finance Corporation funding consideration. It was a matter of timing, but it was not
impossible to review another site. Terry pointed out while this organization had been preparing for
this proposal; the city was approving the Municipal Lands Management Plan which recommended
keeping this property zoned as park, so it put the city in a difficult position.
Long clarified that administration had not been in the loop on this project for the last nine
months either and had only recently been made aware.
Keil said she heard from over 100 people who reached out to the council in support of this
project,so there was a lot of support for the property.There were certainly enough seniors to fill this
housing area. She didn't come up with the same numbers for camping revenue; she came up with
much less estimations based on camping fees.
Butts asked if there was a water utility on the southern portion of the area.Long didn't know.
Long said at this point, administration had only looked at this project to the extent of providing
access to the nearby campers. The plan was to continue current use of the area until the entity had
secured enough funding.It would be maintained as campground until they had funding in place and
the criteria were met,or in five years.If KPHI couldn't meet all the criteria required in five years,the
land would revert to the city.
Butts asked if this proposal with KPHI had looked at moving the proposed buildings to have
minimal impact on the trees. Rouse said their surveyors and architects worked to lessen the impact
on trees,ensure access to utilities,and noted a very complete and comprehensive site plan would be
done.Additionally,these properties would be landscaped and there would be site amenities and site
improvements. The earliest they would know if they had funding would be the end of this year.
Rouse added that may not be the first application to get funding,as sometimes it took years to obtain
funding. He hoped to notify the city by the end of the year that KPHI had secured funds.
Squires asked Long if the city would need to extend any streets. Long said if this was
approved and funds were obtained, these lots would need replatting and that would bring the
Planning and Zoning Commission into the process, but Long said there was no discussion of
extending any streets at this point. Squires said he had concerns based on the aforementioned
tsunami inundation study. Summer time was his biggest concern because there were too many people
in that area.He suggested if and when the replat came forward,the city have a second way in and out
for better access in the event of evacuation. He was going to encourage extending a street to have a
better buffer between campers and senior housing.
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 498
Terry asked legal or administration to provide a description on how payment in lieu of taxes
would be defined in perpetuity at the next meeting.
Motion (Terry/Casagranda) Request that the Planning and Zoning
Commission have a discussion on
Resolution 2015-020 as a public hearing
item on their April 7,2015 meeting agenda
and make a recommendation to council.
Casagranda said this was a difficult situation because so much time and effort had already
been put into this proposal, but it was important to gather more input.
Glenz said notices would be mailed out to nearby property owners.
Motion Approved Yes: Squires, Casagranda, Terry, Butts,
Bardarson
No: Keil, Darling
Bardarson had concerns with this resolution referring to both phases;she thought it should be
for Phase I only at this point to avoid any possibility of land sitting dormant. She would prefer for
this to come back to council with mention of only Phase I. Regarding where the building would go,
Bardarson thought it should be parallel to the Coast Guard property and against the alley,the way it
was identified now. Rouse said he needed to make sure it met any and all needs of the council and
borough.Bardarson said Phase I would only consume three existing campsites.Rouse felt that was a
good compromise to begin with.
Council mentioned the property by the hospital and perhaps the city could help purchase that
land for the project. The land was where the former Wesley Rehabilitation and Care Center used to
be.Rouse reiterated they were certainly here to work with the city,so he was open to all suggestions.
Terry wondered if they were making payments in lieu of taxes in perpetuity,how long that would pay
out. She thought council should have as many options before them as possible.
Council recessed at 9:20 p.m.
Council resumed at 9:24 p.m.
Motion to Amend (Terry/Keil) Amend Resolution 2015-020 by making the
following changes:
1. In the title, "....DONATING
APPROXIMATELY A 1S 0.7
ACRES
PORTION OF THE KPB
PARCEL...."
2. In section one, strike the words "at
least"
City of Seward, Alaska City Council Minutes
March 23, 2015 Volume 39,Page 499
3. In section one, "the transfer of title
for property referenced here as the
western half,approximately,portion
of KPB Parcel #14734005 north of
the easterly extension of Sixth
Avenue and to be further described
through replat,and a minimum size
for the_development of a minimum of
5 units (approximately 0.7 acres) to
the Kenai Peninsula Housing
Initiative (KPHI) for less than fair
market value..."
Motion to Amend Passed Unanimous
Motion to Amend (Terry/Casagranda) Amend Resolution 2015-020, in the 12th
Whereas, by changing "half' to "one-
quarter" of a parcel.
Motion to Amend Passed Unanimous
Motion to Amend (Bardarson/Keil) Amend Resolution 2015-020 by creating a
new section 6 that reads, "The city would
require payment in lieu of taxes (PILT) to
be paid for property tax in perpetuity."and
renumber the sections accordingly.
Staff thought this could be dealt with at a later time.
Bardarson and Keil withdrew their motion and there was no objection from council.
Motion To Introduce Passed Unanimous
UNFINISHED BUSINESS
� • ' •.•Postponed to May 26, 2015.
NEW BUSINESS -None
Other New Business Items
Vote and appoint John French or Orson Smith to fill the City of Seward seat on the Prince
William Sound Regional Citizens' Advisory Council (PWSRCAC), with a term expiring
February 2017.
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 500
City Clerk Johanna Kinney passed out ballots to council then collected them and read the first
vote count as follows:3 votes for John French and 4 votes for Orson Smith. Council appointed
Orson Smith as the city's representative.
Send a letter of support from the Mayor to the Governor's Office and the Alaska Legislature
in support of the confirmation of Robert Ruffner to the Alaska Board of Fisheries. Council
agreed a letter should be drafted. Long stated he would prepare the letter.
See if a member of council would represent Seward on March 28, 2015 in Soldotna at the
Climate Change Conference sponsored by the League of Women Voters and the Kenai River
Campus Student Union. Council Member•Casagranda stated she would attend.
Give guidance to administration on moving forward on SCHC/Providence expansion project
and grant opportunities. Council indicated for SCHC and Providence staff to move forward
with administration to bring forward a resolution for support of the expansion grant
opportunity as described in the March 23, 2015 work session provided by SCHC and
Providence.They asked when administration brought forward a resolution for consideration it
included possibilities for the city to provide additional funding for the project.
INFORMATIONAL ITEMS AND REPORTS
Support letter for a Volunteer Hospice Program in Seward.
COUNCIL COMMENTS
Terry said council had an upcoming joint work session with PACAB on April 1, 2015 at
noon regarding bringing more fishing vessels to Seward.
Butts thanked everyone for their support and comments tonight. He clarified that Andy
Mezirow was nominated by the governor on the North Pacific Fisheries Management Council.Butts
thanked everyone who supported the TYC poker tournament this last weekend.
Squires congratulated the two firefighters getting pinned tonight. He congratulated Mr.
Smith on his PWSRCAC appointment and hoped he would confer with Mr.French on items.To the
people of Lowell Point,Squires promised they would get this project done and to please give the city
a chance.Generally speaking,he felt the city should concentrate on creating plans,setting goals,and
achieving those goals.
Darling congratulated Smith and French for applying. She thanked council for supporting the
street lights and getting the project going.Hopefully soon people could see the lights lit at the top of
the street.
Bardarson thanked everyone for coming out for the senior housing and thanked French and
Smith for applying and congratulated Smith for the appointment.
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 501
Earnhart gave a quick tutorial on the recent lawsuit with Ketchikan regarding dedicated
funds. It dealt with school district funds,and so it was more of a borough issue than a city issue but
important nonetheless.Earnhart gave a summary of what was going on:the Alaska Constitution said
the state was going to provide for education, and the state had a statute for basic needs. The
constitution also had a provision that if the state didn't fund up to the basic needs, the local
municipalities had to make up the difference.Ketchikan argued they had a constitutional provision
about dedicated funds, and the state can't decide how municipalities spend their money.The courts
have said Ketchikan was correct and thus the state had to fund education fully. It was a big issue,
and Earnhart noted it was difficult to define what a dedicated fund was. He wasn't sure what the
outcome would be at this point.
CITIZEN COMMENTS
Sue Lang thanked council for their consideration tonight. She thanked them for keeping the
citizens of Lowell Point in mind.
John French commented on the hospital. He agreed very strongly with Squires and
Casagranda that to spend millions to build an addition to a hospital in a hazardous area might not be
the wisest use for those dollars. The grant numbers possibility discussed in tonight's work session
was a million dollars and that was the only part with the timeline on it. He thought council should
take time to deliberate and understand better what the costs and payment options of fixing the nearby
Lowell Canyon tunnel were. His option would be to build a new hospital in a new location, but it
wasn't feasible.If it was to be built,appropriate mitigation measures needed to be taken.Regarding
senior housing, he was a senior and would need housing eventually. He supported the need for
greater senior housing in Seward,but the site was a very hazard prone site.It wouldn't take the same
size tsunami from 1964 to cause problems. It could be very difficult to move seniors in an
emergency. He tended to be in favor in protecting parks, but if it was going to be there, he
encouraged council to complete both phases. Alternately, he wondered what it would take to get
environmental studies and work done to make the Air Force Recreation Camp a possibility.French
encouraged council to look at that as a possible option.
Lynda Paquette really appreciated the heartfelt concern that she sensed from council about
the situation at Lowell Point with the sewage lagoon. But at the same time, she was discouraged by
administration and the fact that the city had spent so much money on consulting fees to get to this
point.The Request For Proposal for the dredging project was written without concern,and she was
disappointed the priority was at the SMIC lagoon.It was interesting that the Lowell Point lagoon was
not the first priority due to'ice,even though there was no ice at Lowell Point and SMIC had ice. She
felt the stories weren't matching up. Paquette thought council directed administration to do
everything in their power to make the Lowell Point project start first. She didn't understand all the
time that had been wasted. She didn't believe there was nothing that could be done to make this
happen sooner. She previously asked for a letter from the city addressing the issues Lowell Point
businesses could hand to their customers; she didn't know where that issue stood. She reminded
council that Representative Chenault said the state money given for this project was for Lowell
Point, and she wondered if they risked future funding by including the SMIC lagoon.
b
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 502
Tim McDonald said he didn't like the way the sludge removal contract went out either. It
seemed all of these projects were done on an emergency basis, and the city refused to plan for the
future.The sewage treatment system was obsolete,it was old technology,and McDonald believed it
was creating a mixing zone in Resurrection Bay.An environmental assessment for Resurrection Bay,
which was in city limits,was needed.McDonald reiterated the city needed a baseline environmental
study.The city also needed an environmental assessment for the salmon population as well.It didn't
matter how many fish they planted or introduced,if the environment didn't support it,the population
wouldn't be sustained.McDonald concluded by saying the city needed a better conceptualization of
how the harbor could expand and how to prepare for more fleets coming to Seward. If they didn't,
they were doing a disservice to Resurrection Bay.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Keil said a lot of people talked about the Air Force Recreation Camp Site for a senior
housing site, and she had heard they didn't want to be next to the cemetery.
Terry put on the record again that the Lowell Point sewage lagoon did not"spew sewer"into
Resurrection Bay. While she understood the frustration of Lowell Point residents, she also said
administration did care about this project. While administration and council didn't always agree on
matters, she did see them working on this issue and trying their best.
Casagranda said Butts mentioned a while back about paperless packets. City Clerk
Johanna Kinney stated she could do some research on going paperless and have something prepared
in time for this year's budget adoption.
Long stated there were always consequences for poor environmental practices.The city was
aware of those measures and knew to adhere to the state and federal regulations required of them.
Long-understood the idea of relocating the hospital because of its location to the Lowell Canyon
Tunnel and the idea of not building in any tsunami zones. But if they took everything said tonight,
people would move from Seward.He didn't think based on the discussions tonight the city shouldn't
upgrade or put more money into the hospital for improvement and to keep up with the needs.If they
made decisions on worst case scenarios, they couldn't plan anything. Of course if the city could
create a barrier or mitigate it, they would. Long stated the tunnel was still the Army Corps of
Engineers responsibility and those discussions were ongoing and it was the top of the city's priority
list to transfer that responsibility.
Bardarson said quality health care was good for the economy.
Squires said he appreciated Long's comments tonight.His concern was about expanding the
hospital,but it was also about that entire area.He respected Mr.McDonald's comments,but a lot of
the topics he brought up were of a federal mandate. If he had complaints,he should bring them up
with the U.S. Government. Squires was willing to hear about new technology, but not at this time
when they needed to fix the problems at Lowell Point.
City of Seward,Alaska City Council Minutes
March 23, 2015 Volume 39, Page 503
EXECUTIVE SESSION
. This item was moved to the April 27, 2015 City Council Meeting Agenda.
ADJOURNMENT
The meeting was adjourned at 10:21 p.m.
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