Loading...
HomeMy WebLinkAbout10262015 City Council Minutes City of Seward,Alaska City Council Minutes October 26,2015 Volume 39, Page 534 CALL TO ORDER The October 26,2015 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. SWEAR IN NEWLY ELECTED OFFICIALS City Clerk Johanna Kinney swore in newly elected Council Members Mayor Jean Bardarson,Sue McClure,and Deborah Altermatt. (David Squires was sworn in on October 20, 2015) ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Dale Butts Sue McClure Deborah Altermatt comprising a quorum of the Council; and Jim Hunt, City Manager Eric Wohlforth, City Attorney Johanna Kinney, City Clerk Absent—Ristine Casagranda, David Squires CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Fire Chief Eddie Athey noted the City of Seward was the first tsunami ready community in the state of Alaska and noted it was not a small feat.There was a lot of public outreach and education to obtain this designation.Athey introduced Cindi Preller of the National Oceanic and Atmospheric Administration(NOAA) and National Tsunami Warning Center to speak further on this matter. Cindi Preller stated she was Program Manager for the Alaska Region of NOAA. She stated there were some recent changes with the Tsunami Ready program and she was in Seward today conducting tsunami awareness courses and would also be visiting the schools and museum tomorrow to promote these new changes. There were two new members on her team — new Warning Coordination Meteorologist, Louise Fode, and new Tsunami Coordinator Manager for Alaska Department of Homeland Security's Emergency Management, Dan Beringer. Both introduced themselves to the council and stated they looked forward to working together. City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39,Page 535 Bob Reisner was a member of the Seward Bear Creek Flood Service Advisory Board (SBCFSAB).He said he had heard a comment at the board's recent work session that the SBCFSAB did nothing for the City of Seward. Reisner said the board had partnered with the city before,most recently on a project on Dairy Hill, including purchasing a property to improve better drainage.He also noted the board received a letter from City Manager Jim Hunt this fall - acknowledging this partnership, as well as letters from Public Works Director W.C. Casey. Reisner stated one of the board's top priorities was the Japanese Creek alluvial fan. He looked forward to working with the city again. Tim McDonald congratulated the two new council members.He said it wasn't much of an election with only one challenged race.McDonald said there were some problems in Seward,one of them being voter representation. He stated places like Lowell Point,Nash Road area, Exit Glacier Road and other outlying areas did not have representation. McDonald felt that everyone was a "Sewardite."The city was growing and voter turnout made a difference.His other concern was that council had a fiduciary,duty to manage the city,its various projects,and their enterprise funds.The managing of 99 year city leases was a giveaway.The ship yard lease and operating agreement was a travesty. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Butts) Approval of Agenda and Consent Agenda Long requested the following items be added under Other New Business: Discussion of City Attorney Request For Proposal, Schedule a work session on city's Legislative Priorities. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the September 28,2015 Regular and Special City Council Meeting Minutes. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Proclamations &Awards—None Chamber of Commerce Report. Cindy Clock reported the October conferences she attended were a great opportunity to interact with industry professionals. She attended the Alaska Travel Industry Association Conference in Juneau, where the message was "Tourism works for Alaska." She stated tourism put $2.42 billion dollars into Alaska's economy in 2013. She also attended the Alaska Chamber Conference in Fairbanks,where she said it was looking like the state would be using permanent fund earnings and possibly implementing a state sales or income tax to increase revenue. The Pacific Marine Expo was November 18-20, 2015, which she would be attending with Harbormaster Norm Regis and AVTEC's Terry Federer. The Chamber Board applications would be due at the end of this week and elections would be conducted. The Capitol Christmas Tree Event was tomorrow at the Alaska SeaLife Center and encouraged the public to attend. Clock passed out the 2016 marketing budget for the Chamber. City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39, Page 536 City Manager's Report.Jim Hunt said there were no purchases orders between$10,000 and$50,000 authorized by him since the last council meeting.He referred to his written report laid down before council. Keil asked for a synopsis of the report from the U.S.Army Corps of Engineers(Corps)on the Lowell Creek Tunnel Hunt provided to council. Hunt said this was an annual inspection and it was not rare for the Corps to find some issues.The Corps found a fairly large gouge in the tunnel which could cause the tunnel to fail.The tunnel was becoming critical and the city had been talking about following up on the match of the study,which the governor expressed interest in helping fund this match.Right now,the diversion wall didn't rank high on a national scale,but the devastation it could cause in the community was off the charts, in Hunt's opinion. They would continue to pursue this and keep in contact with the U.S. Army Corps of Engineers. McClure asked if the gouge was inside or outside the tunnel. Hunt said the city was responsible for everything outside the tunnel. Right now the dam was fine, but the threat of the tunnel failing or debris blockage was much more critical. City Attorney's Report. Eric Wohlforth introduced Mark Melcher and Nate Parr from Wohlforth's new firm, Jermain, Dunnagan & Owens. From the period of September 21, 2015 to October 23,2015,Wohlforth worked with the city administration on the adequacy of public notice, newer notices of meeting, and the availability of public inspection. They worked with the Electric Department on a request for mediation regarding the Homer Electric Intertie. Will Earnhart was defending the city from legal action with Orion Marine Contractors and was pursuing early resolution to the matter. Other Reports,Announcements and Presentations Friends of the Jesse Lee Home Update.A report was given by President of the Friends of the Jesse Lee Home, Dorene Lorenz. PUBLIC HEARINGS Resolutions Requiring A Public Hearing Resolution 2015-087,Authorizing The City Manager To Enter Into A Special Contract With Icicle Seafoods,Inc. For Discounted Electric Rates For Seward Fisheries. Motion (Keil/Butts) Approve Resolution 2015-087 Long said this was resolution followed up council's direction on the electric rate study conducted last winter,which proposed contract increases to the special electrical rates given to Icicle Seafoods over a five year phasing period. 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 October 26, 2015 Volume 39,Page 537 Charles McEldowney thanked the city staff for meeting with him and his staff.They gave him time to review this contract and he received the fmal copy today. Upon further review, he understood the need to increase rates and pointed out the study also said the special use agreement entities were paying the appropriate amount. This new agreement before them would increase Icicle's rates by about 10% over the next five years. They don't know what their demand charges would be that far out. He was aware that the rates needed to go up and appreciated Electric Utility Manager John Foutz's work in making this contract very clear,but would like to petition council to have more time to discuss this and possibly reduce it some. The kilowatt charges went up at a reasonable rate,but they were hoping the city could place less of an increase on Icicle during their planned expansion project coming up. McEldowney proposed to council giving him a little more time and for the council to approve this contract. No one else appeared to address the Council and the public hearing was closed. Long said special contracts were the only mechanism they had to accommodate anyone outside the current tariff and rate structure.Failure to extend or renew these special rates meant this business automatically would be charged under the general service rate—which would be much more that what was proposed. Administration was trying to meet the council's mandate to bring Icicle Seafoods and the Alaska SeaLife Center into the large general service rate over time.If they wanted to do this another way or make up these funds in another way that could be explored, but this was administration's attempt to answer the council directive. Long added that any contract was amendable by council during the duration of its term. Motion Passed Unanimous Resolution 2015-088,Authorizing The City Manager To Enter Into A Special Contract With The Seward Association For The Advancement Of Marine Science (SAAMS) For Adjusted Electric Rates. Motion (Keil/McClure) Approve Resolution 2015-088 Long said the concept as the previous resolution applied here,with the difference being a two year contract was before them instead of a five year contract. Administration would come back to council at the end of two years to discuss how to further implement council's direction on the matter. 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 Motion to Amend (Keil/Altermatt) Amend by substitution, using the laydown version of the contract. City Clerk Johanna Kinney noted the changes in this contract were the reduction of the length of the agreement from five years to two years. Motion to Amend Passed Unanimous In response to Keil, Electric Utility Manager John Foutz said the budget submitted • City ofSeward,Alaska City Council Minutes October 26, 2015 Volume 39,Page 538 included similar rate changes they were discussing now.The rates in the special contracts were what was proposed in the 2016-2017 budget. Main Motion Passed Unanimous Resolution 2015-089, Amending The Electric Rates And Charges, Implementing Seasonal Rates And Freezing Small General Service Rates For 2016 And 2017. Motion (KeiUMcClure) Approve Resolution 2015-089 Long said this resolution moved the electric rates around,but didn't change the net results. They hoped to bring in revenue from more seasonal visitors and businesses and less for the winter year round residents. This was also a recommendation from the electric rate study conducted last winter. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald protested any increases in electric rates on behalf of the citizens affected in the outlying area of the city. They needed representation so people could have a vote,and until that happened he objected to any rate increases of any nature. No one else appeared to address the Council and the public hearing was closed Long said the increases proposed were the equivalent of the Consumer Price Index (CPI). Hunt added any rate payer's service area or residents in the limits were always welcome to speak to administration or at any meeting on these issues.They still had a voice,but until they were annexed they did not have a vote. Alterman asked why the harbor area was left out of the seasonal rate change.Long stated this resolution was for sales from electric utility,the harbor tariff could and would need to implement its own change.Foutz stated it was a two-step process;once the electric utility sold power to the harbor, the harbor sold it to the boat slips. Butts said he'd heard confusion on how this change was going to affect people's power bill. He said Long's comments stating the net effect would be the same was a good point to make clear.It would go up and it would also go down. Foutz said the city would be implementing a 25%reduction in the winter months and a 25% increase in the summer months for residential customers. There would be a 10% increase in the summer months for small general customers. The intent was to give a benefit to the year round customers,residents,and businesses and to supplement that with seasonal customers,residents,and businesses. Motion Passed Unanimous City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39, Page 539 Resolution 2015-090, Amending The Sewer Tariff To Provide For A 4.3% Increase In The 2016 Calendar Year And A 4.4% Increase In The 2017 Calendar Year, And Allow An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years' Average Increase In The Anchorage Consumer Price Index (CPI) For All Urban Consumers. Motion (Keil/McClure) Approve Resolution 2015-090 Long said this tariff amendment was slightly different than the automatic CPI increases. In addition, there was an additional two percent increase for each year. This fund was weak and not strong enough to take care of operations much less incidents like the lagoon sludge removal project this summer. Staff needed to increase more, but wanted to phase this increase over time. Administration may or may not need to keep increasing rates beyond the CPI if the fund became healthier. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened Tim McDonald thought this was concerning and the city shouldn't move on this until they received more representation as the sewage lagoon was outside the city limits. No one else appeared to address the Council and the public hearing was closed Keil said it was always difficult to raise rates to the rate payers.They were so fortunate to get the grants they received to repair the lagoon. With the federal dollars drying up,the rate increases were warranted and she would support this. Butts intended to support this resolution because the automatic increase was not sufficient. Long concurred,it was just reducing the deficit.This increase put the city in a healthier place with a healthier fund. He clarified the city was not charging rate payers outside the service area. Butts asked if the citizens of Lowell Point were on the city sewer system. Long said they were not;there were efforts in the past to include them,but the funding for that never came through. In response to Butts,Long stated there was no one outside city limits tied to the city sewer or water systems. Motion Passed Unanimous Resolution 2015-091, Amending The Water Tariff To Provide For A 4.3% Increase In The 2016 Calendar Year And A 2.4% Increase In The 2017 Calendar Year, And Allow For An Automatic Annual Adjustment Thereafter To All Rates And Fees By An Amount Equal To The Five Previous Full Years'Average Increase In The Anchorage Consumer Price Index For All Urban Consumers. Motion (Keil/Butts) Approve Resolution 2015-091 City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39, Page 540 Long said this was a split approach, adding to the automatic increase in 2016 and then reverting back to the annual adjustment of the CPI in 2017. This was less of a critical fund but still needed additional help. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened Tim McDonald said this was taxation without representation. The city was charging for services without rendering. No one else appeared to address the Council and the public hearing was closed McClure asked who paid for the city water,Long said it was on the utility bill and restated it was people who resided in the city limits. Altermatt asked why the CPI was based on the five years of 2009-2013.Long stated this was the average of the previous reportable last five years.2014 wasn't able to be factored in quite yet;it needed to be the five full years and confirmed it was consistent. Motion Passed Unanimous Other Public Hearing Items Resolutions 2015-092 through 102,Adopting The 2016 And 2017 Biennial Budget For The: a. 2015-092 City General Fund/Setting The Mill Rate. b. 2015-093 Small Boat Harbor Enterprise Fund. c. 2015-094 Seward Marine Industrial Center(SMIC) Enterprise Fund. d. 2015-095 Parking Enterprise Fund. e. 2015-096 Electric Enterprise Fund. f. 2015-097 Water Enterprise Fund. g. 2015-098 Wastewater Enterprise Fund. h. 2015-099 Hospital Enterprise Fund. i. 2015-100 Seward Mountain Haven Enterprise Fund. j. 2015-101 Motor Pool Internal Service Fund. k. 2015-102 Adopting The 2016/2017 Capital Improvement Plan. (Clerk's Note:these resolutions were for public hearing only at this meeting per Seward City Code 5.05.015) Motion (Keil/McClure) Introduce Resolutions 2015-092 through 102 Long said council had met numerous times in preparation of adopting the 2016-2017 budget and the resolutions before them were a product of the discussions had and the directives given to administration. He added the mill rate remained unchanged. 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 October 26, 2015 Volume 39,Page 541 Tim McDonald said on behalf of all outlying areas of the City of Seward, these residents were without city representation and the council needed to redistrict before they approved this budget. Dorene Lorenz pointed out that Anchorage extended from Eklunta to Girdwood, but the services did not extend that far. Most outlying areas were on private sewer and wells,yet they paid the same taxes even though they received different services.If the citizens of outlying areas wanted to annex, it was their responsibility to bring that change forward, and in the meantime, Lorenz thanked council for their service. No one else appeared to address the Council and the public hearing was closed. Motion Passed Unanimous UNFINISHED BUSINESS—None NEW BUSINESS—None Other New Business Items Nominate, elect, and swear-in a council member as Vice-Mayor. The floor was opened by the presiding officer for nominations. A nomination was made to select Marianna Keil as Vice Mayor. Motion (McClure/Keil) Nominate and appoint Marianna Keil as Vice Mayor. No other nominations were made and nominations were closed. Motion Passed Unanimous Consent City Clerk Johanna Kinney swore in Marianna Keil as Vice Mayor. Mayor appoint a Kenai Peninsula Economic Development District Representative. Mayor Bardarson appointed Dale Butts to be the Kenai Peninsula Economic Development District (KPEDD)representative for 2016. Direct individual Boards&Commissions to give periodic reports to the City Council.With the unanimous consent of council, Mayor Bardarson directed the following: Historic Preservation Commission to prepare an annual report, and the Planning and Zoning Commission and Port and Commerce Advisory Board to give in-person reports in the spring and fall, written reports in the summer and winter. City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39,Page 542 Discussion of City Attorney Request For Proposal. The council reviewed the draft Request For Proposal laid down,made minor changes,and directed city administration to issue the Request For Proposal. City Administration,by code, cited the agreed upon scoring criteria as follows for the record: Firm Experience: 20 points Primary Attorney's Experience: 20 points Methodology/Approach: 20 points Fee Structure: 20 points Interview(if selected as a finalist): 20 points Schedule a work session on city's Legislative Priorities. A work session was scheduled for October 28,2015 at 5:00 p.m. INFORMATIONAL ITEMS AND REPORTS Providence Seward Medical Care Center August 2015 Financial Report. "Extra Mile Day"Proclamation. COUNCIL COMMENTS Keil welcomed the new council members and noted it was nice to have the expertise and knowledge of the city. She thanked the Halloween Carnival organizers who were busy getting ready for next weekend. She was looking forward to the Capitol Christmas Tree ceremony. McClure was happy to be on the dais as a new council member and no longer commuting to Soldotna. It was an honor to be selected. McClure encouraged the public to come see the tree tomorrow night. Butts thanked Athey and administration for their tsunami readiness and their predecessors for earning this designation.He thanked Seward Bear Creek Flood Service Area Board and stated they did a great service to the community. Butts noted he was appointed as the chair of the Marketing Committee for the Kenai Peninsula Economic Development District.He thanked the chamber for the great work they did and noted so many people in the community talked about how good of a job Cindy Clock did as its director.Butts welcomed the new council members.He encouraged folks to use caution Saturday with the Trick-Or-Treaters walking around outside. Altermatt was excited to be here on council as well.She congratulated Clock for being at the Chamber of Commerce for ten years now. She was leaving behind 13 years on the Chamber Board and 15 years on the Port and Commerce Advisory Board. She was excited to move on and be on the council.Altermatt hoped everyone turned out for the tree celebration.The chamber was involved in getting Seward well represented with this national project. City of Seward,Alaska City Council Minutes October 26, 2015 Volume 39,Page 543 Bardarson said the tree would be cut tomorrow and brought to the Alaska SeaLife Center; she also encouraged people to come out and celebrate the first national Capitol Christmas tree,not only from Seward,but also from Alaska. She welcomed the new council members and thanked the public for their vote. Long congratulated the new members and the mayor and apologized for the 17 public hearings tonight.He thanked council,staff,and public for their work on this budget process.It was a lengthy process and thanked everyone for the efforts and patience on this. Bardarson added there were four work sessions and a lot of public participation on this as well as a lot of hard work from the administration and department heads. She thanked them for their dedication. Hunt thanked the many generous sponsors involved with getting the tree from Seward to Washington, D.C., including: Alaska Airlines, TOTE, Shell, Lynden Transport, and Granite Construction. CITIZEN COMMENTS Tim McDonald said there was extreme depreciation for the Seward Marine Industrial Center (SMIC)area and that it continued to go down in value.He stated the lift should be making Seward money annually and giving this to a single vendor for profit lost the city millions and the city was not doing their fiduciary duty. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None ADJOURNMENT The meeting was adjourned at 8:37 p.m. Jo anna Kinn- CMC i J an Bardarson • Clerk Mayor o.0,,,,H®BfBp89 4,-4,1c,,9.0.e..•ooua•mp C� A�D (City Seal) ,oc> „.0000{ �. T6, s1 • 1 ,a e • ® •• ••e •• ro n r e r a o •°• .�y�... / A O °® 4 te°” a '(, fps V,