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HomeMy WebLinkAbout10232017 City Council Minutes City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 290 CALL TO ORDER The October 23,2017 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Vice Mayor Marianna Keil. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. SWEAR IN NEWLY ELECTED OFFICIALS Acting City Clerk Brenda Ballou swore in newly elected officials: Mayor David Squires and Council Members Sue McClure, Suzanne Towsley, and Jeremy Horn. ROLL CALL There were present: David Squires presiding and Marianna Keil Ristine Casagranda Sue McClure Erik Slater Suzanne Towsley Jeremy Horn comprising a quorum of the Council; and Ron Long, Assistant City Manager Brenda Ballou, Acting City Clerk Will Earnhart, City Attorney Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Aaron Brill was with Silverton Mountain Guides, a Heli skiing business. He had been working with the U.S.Forest Service(USFS)to obtain permits to access additional terrain in order to expand his service area. The USFS would be hosting a meeting at the library on October 26, 2017 that he hoped people would attend to show their support for him. The USFS was offering to allow the business 200 use days,which Brill didn't consider a full season. The USFS was planning to use a lottery service, but this would not guarantee any local business would receive the rights, and they could be granted to a company from Girdwood or some other location. Jackie Wilde said congratulations to everyone being sworn in. October was Breast Cancer Awareness Month; she wanted to bring attention to IBC which was an aggressive form of breast cancer, and was not discovered through a mammogram. By the time IBC was diagnosed, it may already be in stage 3 or 4.Wilde's mother had been told she had a bug bite,but it was actually cancer City of Sewar4 Alaska City Council Minutes October 23,2017 Volume 39, Page 291 and in a short time it had spread throughout her body. Wilde distributed flyers that had information about the cancer and its symptoms. Phil Kaluza said he was retired but had been a Seward business man for many,many years. He had worked in the past with Andy Baker with heat pumps, and was a proponent of residential heat pumps. He thought perhaps there could be a few buildings in town that would benefit from using heat pumps.Heat pumps used more electricity,but less oil consumption.Down the road,tidal or hydroelectric power might supplement the electricity usage as technology matured. He was looking for$24,000 to put in four units in buildings in town. Sharyl Seese congratulated everyone.She thanked council for putting$10,000 back into the Senior Center budget. She reminded everyone that tomorrow was Wear Purple Day in recognition of domestic violence awareness. Christy Terry thanked the outgoing and incoming council members and mayor,and the new city clerk. She wanted to compliment the harbor staff--the harbormaster,assistance harbormaster, and senior administrative assistant Melody Moline—all of whom had attended the Harbormasters Conference two weeks ago,and all were well regarded by all who attended.She was excited that the Harbormasters Conference would be held in Seward in 2018. Carol Griswold congratulated the mayor and three council members. She commended the police dispatch for their friendly and courteous greeting,and their professional assistance.Griswold said she remained concerned over the loss of valuable employees; turnover in the city staff was high and alarming, and she wanted to see turnover reports included in the City Manager Report. She appreciated the reinstatement of funding for the two long-time custodial employees. She called council's attention to the Seward Parks&Recreation Master Plan;the last plan that was approved was 20 years old. She wished council would direct Planning & Zoning Commission to finish the draft plan for Planning&Zoning. The city manager and assistant city manager were both gone the week of October 9th but did not report out in the last City Manager Report; if travel was business- related,she wanted to see a mention about where and why the trip was made,and also a fiscal note. Griswold had called the city of Homer and asked about who needed Port Certification there,and they said only their Harbormaster and Deputy Harbormaster received training; she wondered why Seward's city manager needed port certification. Tim McDonald congratulated Mayor Squires.He thought the shipyard might be beneficial if it was put into a permanent fund so that it made money for the city.He thought it had never been run correctly;the city should be getting between 8-15%percentage of the revenue from the shipyard,and the people of Seward should receive a dividend from the operations. Brad Snowden said wanted to speak about the airport; he wanted to have Seward International Airport that could land 737s. He quoted a portion of the poem Desiderata,"Listen to the dull and ignorant, for they too have a story". APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 292 Keil removed Resolution 2017-070 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2017-069,Amending The 2017 Budget To Record Expenditures Of$126,433.99 Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees Retirement System Liability For The Period January Through June, 2017, And Appropriating Funds. Approval of the October 9,2017 Regular City Council Meeting Minutes and the October 13, 2017 Special City Council Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Plaque for Deborah Altermatt, recognizing her service on the Seward City Council. Chamber of Commerce Report. Cindy Clock said the chamber was extending the membership renewal deadline to October 31, 2017. On October 2, 2017 Jen Leahy attended the Alaska Travel Industry Association's fall conference in Kodiak. The state's marketing budget had been decimated this year, but the state's visitor brochure would be back in January, 2018; Leahy learned that at the conference. Clock said Samantha Brown from the Travel Channel would have a new show called Places to Love and Brown had visited Seward; the chamber was trying to get an episode filmed for the show featuring Seward. The 4th Annual Energy Forum & Fair was held October 13 & 14, 2017; the student science challenges were well done, and $4,000 in sponsored scholarships was earned; the art contest was also very creative. Clock reported that the Silverton Mountain Guides operations were supported by the chamber,were not a detriment to the terrain,and that she was planning to attend the meeting with the U.S. Forest Service on October 26, 2017. Tomorrow she would be meeting in Kenai with all the Kenai Peninsula Chambers of Commerce in a "mini summit" networking meeting. The Pacific Marine Expo would be next month. Community awards nomination form was on the seward.com website.Chamber had undergone a successful audit. Clock provided a draft of the chamber's marketing budget;there was room to grow social media;lots of work on the Seward economic growth plan, particularly the SMIC group and the Business Network group. Clock enjoyed the collaborative relationship the chamber had with the community and the city council. In response to Squires,Clock said the Alaska Travel Industry Association(ATIA)was a state organization. Squires said he had gone out and counted the signs that pointed visitors from the harbor to downtown:there was one at the chamber,one across from the Chevron station;one at the Rez Art building.He wasn't convinced that signage was an issue for not getting more foot traffic downtown, and perhaps there were other issues. Clock said she would love to meet and talk about ideas. City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 293 City Manager Report.Assistant City Manager Ron Long reported the following purchase order between $10,000 and $50,000 had been approved by the City Manager since the last council meeting: $12,700 to GCR Tires for loader tires. The 330-Ton Travelift would be shutting down for the month of November for expansion,and possibly for the first week or so of December.There was a possibility that the Board of Fish would be having their conference in Seward in 2019. In response to Squires, Long said the city's priority list would be due to the borough by the end of the year. Long said it was currently with the Port and Commerce Advisory Board,and would come to council soon. Other Reports,Announcements and Presentations United Fisherman of Alaska Presentation by Rhonda Hubbard. (McClure) PUBLIC HEARINGS Resolution 2017-056,Authorizing A 10-Year Lease With Two 10-Year Options To Extend, With The U.S. Department Of Army For Lot 9A,Fort Raymond Subdivision Replat No. 1 (US Army Rec Camp), And Authorizing A Public Utility Easement. Motion (Keil/Casagranda) Approve Resolution 2017-056 Finance Director Kris Erchinger said the Army had just concluded a 30-year lease earlier this year. This lease was for 10 years,with two 10-year extension options.Erchinger thought the best part of this lease was the ability to charge fair market value over the course of the next ten years, from $22,000/year to $58,000/year. Another component was that the Army would be required to maintain the property in as good or better condition as it was today; a complete inspection and documentation of the current condition of the property had been performed.The Army had agreed to a new utility easement, and also to a property reappraisal every five years following the initial 10- year lease period. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald wanted to know what the lease rate was and how many acres it involved. No one else appeared to address the Council and the public hearing was closed. Casagranda asked if the guests paid bed tax or if they were exempt. Erchinger said they were exempt because both were government entities. Following up, Casagranda asked if there had been any conversation about Payment in Lieu of Taxes (PILT). Erchinger said they had attempted to negotiate a PILT with the Army, but the Army was unwilling to consider it. In response to Casagranda, Erchinger elaborated that during the conversation regarding PILT, the Army made a strong case for their guests supporting the city's economy. The city had made several attempts over many, many years to have these discussions, but there was no support for pursuing the concept of taxing their guests. In response to Casagranda,Erchinger said the increase resulting from this lease had already been included in the proposed 2018-2019 budget. City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 294 Motion Passed Unanimous Resolutions 2017-057 through 2017-067, Adopting The 2018-2019 City of Seward Biennial Budget. (Clerk's Note: For introduction and public hearing only—not for adoption tonight) Motion (Keil/Casagranda) Approve Resolution 2017-057 through 2017- 067 Long said administration had tried to incorporate all the input from the public and council. Erchinger pointed out several specific proposed changes: in the General Fund, funding was restored for the Senior Center back up to $75,000 from the reduced amount of$65,000; used a portion of grant administrative fees in the amount of$98,008 for two years to repay the Motor Pool from the SMIC fund to repay the 330-Ton Travelift loan; restored the two custodial positions; and, recommended using 10%of the Commercial Passenger Vessel(CPV)tax to help a variety of General Fund items, as allowed by state law. Long added that administration would prefer to service the Motor Pool debt,and would like council to consider the alternative presented by Erchinger. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Christy Terry thanked council for their budget deliberations. She requested that the Boys& Girls Club funding be restored to its full funding amount of$25,000. The program was delivered at the Seward Elementary School,and the rates were affordable for many families.Council and citizens had asked for more outsourcing, and Terry believed this was a perfect example. She thought this small budgeted amount actually yielded large results for the community. She thanked administration for incorporating the changes suggested regarding the senior center and the janitor positions. Maggie Wilkins was the director of the Boys&Girls Club. She said thank you for the hard work, and thank you for the opportunity to speak. The need for programs far outweighed the opportunities for after-school programs for students across the nation,and Seward was no different. On average there were 45 children in Seward who attended the Boys&Girls Club daily. Academic success, good character, and healthy lifestyles were the three main ideals they instilled in the students. The Kenai Peninsula would be dissolving United Way in 2018/2019,which was something else that was very important to the community.Also,the Boys&Girls Club was losing a 2 year grant from Providence. State and federal cuts were being made at the same time that there was an increase in demand. Wilkins requested that the budgeted funds be restored back to $25,000. Carol Griswold commended Kris Erchinger and Ron Long for expertise, experience, and effort. In the budget,the Parks&Recreation Department's expenditures of over$1.4 million really popped out, which was more than was budgeted for Public Works. Griswold thought there were areas in the budget where these expenditures could be reduced, and suggested a separate work session. She thought the Parks&Recreation budget should be guided by an approved Master Plan, not just a draft. Griswold did not support the proposed$750,000 in playground improvements. She City of Seward Alaska City Council Minutes October 23, 2017 Volume 39, Page 295 also did not support new ranger cabins, was disappointed with the conditions of the trails at Two Lakes Park,and said the parking lot trailer at the harbor was not ADA compliant. She estimated that there were only 25 dog licenses budgeted, and perhaps that needed more advertisement or enforcement.Griswold also thought the proposed budget for the Sister City 50th Anniversary in 2018 was money that could be better spent elsewhere. Lynda Paquette said the Boys&Girls Club really needed their entire budget.She wanted to speak about her electric bills because she had received her most expensive electric bill ever last month. She had three business meters and one house meter; the difference of the increase was completely different on each bill. She wanted to understand how the rates could vary so much. Tim McDonald added up all the budgets and estimated the city's entire budget to be over $50 million.He estimated that$17,000 was being spent in every citizen's name that lived in the city. He thought the Parks&Recreation Department had too much money in the budget.The budget was so big he thought council had lost sight of the people and their needs. He thought the city should divest itself from running the shipyard,as well as the hospital.He wanted council to trim the budget down and stop the empire building. No one else appeared to address the Council and the public hearing was closed. Motion to Amend(Keil/Casagranda) Amend Resolution 2017-057 the Boys&Girls Club budget from $25,000 to $35,000. Council suspended the rules to speak with Maggie Wilkins. In response to Squires, Wilkins said a $10,000 cut to their budget would be devastating. Wilkins said they had been doing more with less every day.Long said administration would make it work to add these funds back into the budget. Motion to Amend Passed Unanimous Keil explained that items on the Capital Improvement Plan budget were not necessarily going to happen, at least not until a funding source was identified. The Parks& Recreation Department actually brought in nearly 50%of their budget and,historically,when the Parks&Recreation budget was proposed to be cut,the public had an outcry.Keil thought that staff turnover was due,at least in part,to non-competitive low wages;the city could not always compete. McClure said regarding the Capital Improvement Plan,the list included items that weren't necessarily funded.There were millions of dollars'worth of projects on that list,and only a couple of the projects would actually get done next year. At Casagranda's request, Long said administration would add markers on the Capital Improvement Plan budget to indicate which projects were partially or fully funded. In response to Casagranda,Long said some items were purchased from the Motor Pool,and some were not,because not all departments contributed funds to the Motor Pool. Erchinger added City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 296 that the Motor Pool's primary purpose was heavy equipment and passenger vehicles; items such as Tool Cats would not typically be purchased from the Motor Pool. In response to Casagranda, Long said SMIC was operating at a less-and-less-each-year deficit, but that was an oversimplification. Primary Motion to Amend (Casagranda/Towsley) Amend Resolution 2017-059 to require SMIC to operate at a break even instead of a deficit. Erchinger said the SMIC budget was projected to be break even;they were approaching the end of days for subsidizing SMIC. Secondary Motion to Amend (Casagranda/Towsley)Amend Resolution 2017-059 By Transferring Money From The General Fund In The Amount Of$110,867 In 2018 And$102,567 In 2019. Secondary Motion to Amend Passed Yes: Horn, Towsley, Casagranda, Squires No: Slater, McClure, Keil Primary Motion to Amend Failed Yes: Towsley, Casagranda, Horn No: Slater, Keil, McClure, Squires Resolution 2017-068,Amending The Electric Rates And Charges, Reducing Seasonal Rates, And Adjusting Rates To Reflect Seward Electric Utility Charge, Cost Of Power Adjustment And Customer Charge For 2018 And 2019. Motion (Keil/Casagranda) Approve Resolution 2017-058 Long said they were trying to hold the line on rates and make the rates easier to understand. Electric Utility Manager John Foutz said the seasonal rates were either too large or too difficult to understand;the rates would be held at 15%maximum for residential and 10%for small commercial, and only apply to the Seward utility portion.On the purchased portion,the Seward utility charge and the Cost of Power Adjustment(COPA)comprised the two portions. The Seward utility charge was the cost to deliver the utility to the customer,and the COPA was the cost to purchase the power from another utility. For seasonal customers, there was a minimum charge being proposed of$28.75 which equated to 150kWh as a fixed rate. There would also be a turn on/turn off fee; this would impact only a few users.Long added that there was a cost associated with seasonal turn ons/turn offs; it was not a punitive fee, it simply accounted for the maintenance and availability of the power. Long summarized that the Chugach decrease of 2% in 2018 would be offset by a 1.9% increase from the city, so customers would only pay an additional 80 cents on a$100 electric bill. The fuel charge was a pass through from Chugach Electric,and the city had no control over that,but it coincided with the city's seasonal rate changes.The new bill will present these charges separately. Notice of the public hearing being posted and published as required by law was noted and the public City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 297 hearing was opened. Sharyl Seese said she was hoping that she could see something in print that demonstrated these rate changes and clearly understandable bills. She hoped that these changes proved to be beneficial for everyone. Tim McDonald said,considering the recession Alaska was currently experiencing,council should consider a 10-15% rate reduction. Lynda Paquette said the electric bill she just received for August/September was$113 more than her highest historical bill. She appreciated the explanation about the Chugach electric fuel surcharge, but she still didn't understand why she had varying kW rates on each of her bills. Phil Kaluza said he appreciated breaking out the two rate components.He wondered if there could be a special tariff created in the future to incent people to adopt heat pump technology. No one else appeared to address the Council and the public hearing was closed. McClure said she wanted to point out that the suggestions made during the work sessions were being followed, and she thought this would be an improvement. Keil said there had been two work sessions on the electric utility issue, and the citizens' comments and concerns had been taken into account. In response to Casagranda, Long said about half of a customer's bill went to Chugach, and the other half of the bill went to pay for workers and maintenance. Long said this was a zero sum budget and the city was not making money on electric utility bills. Foutz added that the base rate proposed in the tariff was .09376 and the COPA was .098, so it was about half and half. Motion To Amend (Casagranda/Towsley) Amend Resolution 2017-068 By Striking The Second Whereas In Its Entirety Casagranda thought there should either be seasonal rates or a CPI, but not both. Long thought the Consumer Price Index (CPI) and the seasonal rates were two separate conversations. Long said the advantage of having the CPI in place for 2018 was virtually unnoticeable to consumers, but would be a great advantage to the budget. Motion To Amend Failed Yes: Towsley, Casagranda, Horn No: Slater, Keil, McClure, Squires Main Motion Passed Yes: McClure, Keil, Slater, Squires No: Towsley, Casagranda, Horn UNFINISHED BUSINESS—None City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 298 NEW BUSINESS Resolution 2017-070,Approving An Employment Agreement With Brenda J.Ballou For City Clerk Services. Motion (Keil/Casagranda) Approve Resolution 2017-070 Motion to Postpone Postpone Resolution 2017-070 to a Special Meeting on October 26,2017. Motion to Postpone Passed Unanimous Other New Business Items Nominate, elect, and swear-in a council member as Vice Mayor. Mayor Squires opened the floor for nominations. Motion (McClure/Horn) Nominate Keil As Vice Mayor. Motion (Towsley/Horn) Nominate Casagranda As Vice Mayor. By Unanimous Consent,the nominations were closed.Mayor Squires directed council to cast paper ballots for Vice Mayor, and the clerk read the results: Keil 4, Casagranda 3. Acting City Clerk Brenda Ballou swore in Vice Mayor Keil. Appoint a council liaison or direct individual Boards& Commissions to give periodic reports to the City Council. By Unanimous Consent, council directed the following reporting schedule: Planning& Zoning Commission • 1Q18 —in person report at a council meeting • 2Q18 —written report submitted to City Clerk for inclusion in the council packet • 3Q18 —in person report at a council meeting • 4Q18 —written report submitted to City Clerk for inclusion in the council packet Port& Commerce Advisory Board • 1Q18 —in person report at a council meeting • 2Q18 —written report submitted to City Clerk for inclusion in the council packet • 3Q18 —in person report at a council meeting • 4Q18 —written report submitted to City Clerk for inclusion in the council packet Historic Preservation Commission • Annual report to council City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 299 Appoint a city representative to the Kenai Peninsula Economic Development District (KPEDD). McClure volunteered to be the city's representative,and council approved by Unanimous Consent. Discuss sending Council Member Casagranda to the AML Conference in Anchorage in November, 2017. (Casagranda) Council unanimously agreed to send Casagranda to the AML Conference. Discuss rescheduling the November 13, 2017 City Council meeting. By Unanimous Consent, council cancelled the November 13, 2017 meeting. Discuss the Sister City 506 Anniversary Celebration in 2018. By Unanimous Consent, council postponed this discussion to the November 27, 2017 meeting. Discuss the City Clerk's goals. By Unanimous Consent, council postponed this discussion to the November 27, 2017 meeting. INFORMATIONAL ITEMS AND REPORTS On-going City Project and Goal List. Extra Mile Day Proclamation August Financial Reports for the City of Seward and Providence Seward Medical and Care Center. COUNCIL COMMENTS Keil apologized to council that she"flew off the handle"earlier in reaction to the apparent lack of attendance at the budget work sessions. McClure said vote tomorrow for borough mayor run off election. She extended her deepest condolences to the families that lost people this week. Slater thanked Rhonda Hubbard for the informative presentation tonight, and reminded everyone to drive safe. Towlsey concurred with council's comments and looked forward to public comments. Horn said was pleased with the solutions for the Boys& Girls Club and the Senior Center. City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 300 Squires said condolences to Nelson and Bissonette families. He welcomed the newest council members. Squires reminded council that they were the public's voice to administration,but also administration's voice to the public,so know the facts before speaking,do the homework,listen more to both sides,and review the Charter and City Code. He requested that council write down at least three of their top projects and turn them into the city clerk as soon as possible. He reminded everyone of the U.S. Forest Service open house on October 26, 2017 at 6:00 p.m. at the library. CITIZEN COMMENTS Tim McDonald said the city was not making enough money at SMIC. Kelley Lane asked for an update on the 402 Madison property auction. Lynda Paquette responded to the earlier comment about the city not paying its employees enough, and thought if Seward embraced We Love Us and focused on becoming a more loving community, it may be more attractive to employees. Carol Griswold thanked council for the clarification about the Capital Improvement Plan. She wondered if the cruise ship head tax could be used for public restrooms,particularly at Williams Park; she said there were great restrooms in Homer that had been paid for using those funds. She challenged everyone to think about what Seward offered that no other community could;perhaps a focus on boat maintenance could create a niche for Seward. She thought it was important to note any employee turnover in the City Manager Report. Christy Terry thanked council for listening to the public and for restoring the Boys&Girls Club budget. She expressed appreciation for Acting City Clerk Brenda Ballou, who had been the deputy for the past seven years,and was the first person employed by the clerk's office in Seward to obtain a Master Municipal Clerk designation; she thought it was important to note that it was possible to have an outstanding employee who moved up through the ranks. Maggie Wilkins thanked council for the Boys & Girls Club budget. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Long said be careful because there were icy sidewalks out there now. The shiplift required about $500,000 a year in expenses for maintenance. Towsley asked where the city manager was tonight. Keil said the city manager was in San Antonio for a city manager's conference. City of Seward, Alaska City Council Minutes October 23, 2017 Volume 39, Page 301 ADJOURNMENT The meeting was adjourned at 10:30 p.m. 4, / /Brenda J. Ball:, MMC David Squires Acting City Clerk Mayor (City Seal) .• FSEL.N,. :2 :� gyp: s ' • I SEAL a • • • _.._ I >` • •' ArP ...