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HomeMy WebLinkAbout06092008 City Council MinutesCity of Seward, Alaska City Council Minutes June 9, 2008 volume 37 Page S83 CALL TO ORDER The June 9, 2008 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Clark Corbridge. OPENING CEREMONY Lieutenant Louis Tiner led the pledge of allegiance to the flag. ROLL CALL There were present: Clark Corbridge presiding and Linda Amberg Betsy Kellar Jean Bardarson comprising a quorum of the Council; and Phillip Oates, City Manager Jean Lewis, City Clerk ABSENT -Tom Smith, Willard Dunham and Robert Valdatta CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Chellie Skoog and Margaret Anderson invited the community to a fundraising event on June 11, 2008 for the newly founded Seward Community Foundation. The foundation was on a quest to raise $25,000 by the end of June to be eligible for atwo-to-one grant match by the Rasmuson foundation. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson/Amberg) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: The May 27, 2008 regular city council meeting minutes were approved. Submittal of candidate Sue McClure to the Borough Mayor and Assembly for appointment to the Kenai Borough Planning Commission for athree-year term to expire July 31, 2011 was approved. City of Seward, Alaska City Council Minutes June 9 2008 Volume 37, Page 584 SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards AVTEC Chef s Elizabeth Fackler, Kevin Lane and Robert Wilson were recognized. A proclamation was presented recognizing Flag Day on June 14, 2008. Borough Assembly Report. Borough Assembly Representative Ron Long stated the Seward/Bear Creek Fire Department had increased their ISO rating from a 7 to a 6. The peninsula budget was approved at the last meeting. A $4.3 million dollar increase from last year was in education, and the education funding level was funded in full. There were no new taxes, property taxes were reduced from 5.5 to 4.5 mils, money was added to the marketing budget bringing the total to $300,000 and $100,000 to do an aggressive culvert replacement program. No new positions were added but some positions and duties were shifted. City Manager's Report. City Manager Phillip Oates stated Fred Olsen Cruise Lines would be making Seward aport-of--call in 2009. They were offering a holiday package from Singapore to Vancouver. He exchanged plaques with the Tahitian Princess of Princess Cruise Lines and met with John Binkley and Rod Flagger with the Alaska Cruise Association. - Jesse Lee Home. Only one proposal was received for the RFP which after evaluation was found to be unresponsive for several reasons. Administration would pursue an experienced firm to prepare the historic structures report without further competitive bidding or quotation and would bring that back to the council. - Harbor. Harbor Opening Day Weekend and Military Appreciation Week were successful. He thanked the harbor staff, Sailing Inc., the Chamber of Commerce and Bob Candopolous for coordinating the community events. Work had begun to repair the dock damage in front of Icicle Seafoods, and in-water dredging around the I-dock construction project was finished with final soil placement, electrical and light pole placement left to be finished. The 24 barrels found abandoned on Nash road had been removed and a reward was being offered which resulted in a conviction of the offender(s). - Public Works. Scope of work for the $1.1 million federal earmark for road improvements would be going to DOT this week. Wastewater had been upgrading controls in the well houses and lift stations, and had been working with contractors at the Long Term Care Facility inspecting sewer main installation. Other maintenance and repairs such as painting cross walks, patching potholes, routine maintenance on vehicles, fire hydrant flushing, concrete repairs to damaged areas around city hall and preparing for July 4"' were being conducted. - Li rarv. The Library/Museum hosted Jackie Pels, author of "Family After All Vol. 2" on the history of the Jesse Lee Home. Pels was donating half of the proceeds from the sale of her book to the library/museum foundation. In response to questions, Oates stated all field observations were being catalogued daily by the Long-Term Care Facility Project Manager Mike Gillen. City of Seward, Alaska City Council Minutes June 9, 2008 volume 37, Pa e 58S ~.. Port and Commerce Advisory Board Report. Chairman Ron Long stated two topics were being discussed by the Board. First, was the SMIC upland boatwork policy and secondly, addressing the south harbor upland plan for the harbor area. A joint work session needed to be set with the council to discuss common priorities. Seward Bear Creek Flood Service Board Report. Not Present PUBLIC HEARINGS Non Code Ordinance 2008-015. Appropriating Funds To Make Expenditures Which Could Influence The Outcome Of An Election Concerning A Ballot Proposition Addressing A Biennial Budget In An Amount Not To Exceed $1,500. Motion (Bardarson/Kellar) Enact Ordinance 2008-015 City Manager Phillip Oates stated on March 24, 2008 council placed a proposition that would be on the October ballot to support a biennial budget instead of an annual budget. The city was preparing material that would identify the pros and cons of this budget. He said the City could prepare and distribute election materials that were solely for a neutral position on the issue, and under state law, the city could engage in educational activities to promote the issue, but could not use money to influence the outcome of an election unless funds were appropriated for that purpose by the elected body. Oates presented that most information would probably be distributed with the monthly utility billing to save postage costs. This appropriation would give the city some flexibility in presenting the information to the public. 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. Kellar thought it was wise to have a two year budget for a few reasons. One ofwhich was for long term planning. Motion Passed Unanimous UNFINISHED BUSINESS A work session was set for Monday, July 14, 2008 at 6:00 p.m. to discuss PACAB Priorities. NEW BUSINESS Resolutions Resolution 2008-049. Authorizing The City Manager To Purchase AMacerator/Grinder Device From JWC Enterprises For An Amount Not-To-Exceed $14,335. City of Seward, Alaska City Council Minutes June 9, 2008 Volume 37, Page 586 Motion (Bardarson/Kellar} Approve Resolution 2008-049 Oates stated he had mentioned at a work session that this purchase came in advance of council approval because of its emergency nature. This macerator failed on May 16, 2008. The device was removed and repair found not viable because of erosion and worn cutting teeth. Oates reported a section of the sewer system was shut down and the device was ordered and scheduled for arrival June 9, 2008. Oates also noted sole sourcing was not a viable option because of refitting costs. Oates recommended approval. Amberg stated, although she believed heavily in proposals, she had spoke with the Public Works Director and found out he had solicited quotes with another vendor, but with retrofitting, the cost would probably be higher with another outfit. Motion Passed Unanimous Resolution 2008-050, Providing For The Issuance Of Electric Revenue Bonds Of The City In The Aggregate Principal Amount Of Not To Exceed $6,000,000 For The Purpose Of Providing Amounts To Acquire, Construct And Install Necessary Additions And Improvements To The City's Diesel Electric Generating System And To Do All Things Necessarily Incidental Thereto, And To Pay The Costs Of Bond Issuance; Fixing Certain Covenants And Protective Provisions Safeguarding The Payment Of The Principal And Interest On Said Bonds; And Providing For The Date, Form, Terms, Maturities And Manner Of Sale Of The Bonds. Motion (Bardarson/Amberg) Approve Resolution 2008-050 Oates had met with UNIT Co. and Electric Power Systems (EPS) to value engineer the cost to a more affordable level. As a result, both companies were asked to conduct surveys. UNIT would conduct a survey on exact specifications of the buildings that would be built, and EPS for generator installation and control requirements. Oates stated the reason for the surveys was a more precise cost was needed because of the firm fixed priced contract to assist the bidders in getting a clear idea what their expenses would be. He said the surveys would break the proj ect into three phases. They were: 1) The purchase and delivery of the generators. 2) Installment of the generators including, removal of old generators, adding automated controls, and providing the needed protection such as a building, arctic pac or expandable building. 3) The vehicle/equipment building that may or may not go on that location, that would house the electric department Oates informed this resolution did not grant approval for the contract or any of the above, but committed the city to ask for $6 million in revenue bonds from the bond bank. Even though the city received $2 million from the state, giving the potential fora $9 million project, administration was sure at least $6 million would need to be borrowed. Although he did not think this would increase electric rates right away, he could not guarantee that for the future. Oates offered that the city would have to consider whether to obtain two stand-by generators, or ask the consumers to conserve power to get by with four generators during these phases. City of Seward, Alaska City Council Minutes June 9, 2008 Volume 37, Page 587 Motion Passed Unanimous ~.. Resolution 2008-051, Approving A Management And Operating Agreement Between The City Of Seward And Providence Health & Services -Washington, DB/A Providence Health System Alaska, And Appropriating Funds. Motion (Bardarson/Amberg) Approve Resolution 2008-051 Oates wanted to discuss this issue now, but would be asking for failure to have time to address the tax exempt status of the bonds before bringing this agreement back for approval. He would be asking fora 60-day extension of the current contract at the next meeting while the tax exempt issue was being agreed upon by the lawyers. The current agreement expired on July 11, 2008. Some of the changes and comparisons from the old contract to the new contract would be: 1) There were changes to the section related to management fees. Because of IRS requirements to maintain tax exempt bond status, it was not possible to have a fee of 4.5% of net revenue as listed in the current packet. A set management fee of $500,000 would be proposed. 2) References of Wesley Care Center would be cleaned up and one entity would be referred to. 3) The 24 hour requirement for notification of traveling nurses would be changed to require timely notification. 4) Provisions were added for Long-Term Care Facility operation and compliance with greenhouse model requirements. 5) More clearly excluded costs charged from Providence Anchorage or Providence Seattle, which should save around $600,000 a year. 6) Modified the cash flow section to allow the city to borrow money from Providence in case of shortfall subject to Providence approval at a rate of prime plus 1%. 7) Transferred established money in reserve to Providence to cover existing $300,000 shortfall. Oates stated this was a new paradigm for rural hospitals and would impact all of Alaska. He reiterated the need to fail this resolution at this time. Motion Failed Unanimous INFORMATIONAL ITEMS AND REPORTS (No action required Apri12008 Financial Report for Seward Providence Medical Center. COUNCIL COMMENTS Amberg congratulated Bear Creek Fire Service Area for their new ISO rating which would make a difference in insurance costs. She offered condolences to Jenny August for her husband "Augie's" passing. City of Seward, Alaska City Council Minutes June 9, 2008 volume 37, Page 588 Bardarson also offered her condolences. She was happy the roads were being looked at for repair. Kellar notified the public there was weatherization opportunities for occupied home owners through AHFC. CITIZENS' COMMENTS Mark Teckenbrock was representing Port City Players, and was putting in a request for funding to assist with the Seward Music and Arts Festival, which he thought helped the community with the shoulder season and was good for the peninsula, and asked for the City's consideration. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS -None Mayor Corbridge informed all that Council Member Tom Smith's wife Betsy had passed away, and offered his condolences. ADJOURNMENT Motion (Bardarson/Amberg) The meeting was adjourned at 8:12 p.m. Je Lewis, C C Cit Clerk Clark Corbridge Mayor (City Seal) `~~~~~~~~rrrrr .•'~~ OF s~W.q'•. s+......,., s ~~ ,~~'` _~3 ~ M~ ~~ a~ ~ys ~ e. ~ r + ~, s ~ ~ ~ e° r i : 1 -,: iLd 3 r ~ ,~ i r _A• ~ ,~ • r • '7 •++++r+s+s+++++ ~ ''~ '•.,;F ORsA~~;~