HomeMy WebLinkAbout12082008 City Council MinutesCity of Seward .91a.cka
December 08, 2008
CALL, 7'O ORDER
Crry Caurtcil Mirzutes
Voltenee 37, Pape 669
The December 08, 2008 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Vice-Mayor Willard Dunham.
OPENING CEREMONY
Police Chief Tom Clemons led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Vice-Mayor Willard Dunham presiding and
Betsy Kellar
Tom Smith
comprising a quorum of the Council; and
Phillip Oates, City Manager
Jean Lewis, City Clerk
Cheryl Brooking, City Attorney
ABSENT -Clark Corbridge
Bob Valdatla
Jean Bardarson
Marianna Keil
CITIZF,NS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Carol Griswold, urged the council to pull Resolution 2008- l 31 from the consent agenda and
not support it because it spent taxpayer money and would not alleviate flooding. Shc thought there
were far better projects that served the public needs better. She stated this project would only
redirect water and not alleviate flooding. Griswold stated this area would always be a problem
because it was at the bottom of the mountain with underground streams. She directed council's
attention to the 2006 photos that she had sent previously by email and asked that consideration be
given to other projects that she mentioned.
Theresa Butts, had the utmost respect for city personnel and did not want to sound curt but
was losing patience with trying to interconnect her windmill to the city grid. She did not understand
why they could not connect to the grid since they were a qualified facility, and thought she would be
exempt from the requirements of the contract with Chugach Electric Association. 1n light of the
economy and their determination to be more cost effective, she j ust wanted to be able to consume the
electricity they could generate.
APPROVAL OF AGENDA AND CONSENT AGENDA
City o~Setinard, ~llaskn
December 08, 2008
Motion (Bardarson/Smith)
City Council Minutes
Volume 37, PnKe 670
Approval of Agenda and Consent Agenda
The following resolutions wcre removed from the consent agenda:
Resolution 2008-126, Adopting The Capital Improvement Plan Budget For Calendar Year
2009 And Two Subsequent Calendar Years.
Resolution 2008-131, Accepting Grant Funds In The Amount Of $30,000 From The Kenai
Peninsula Borough For The Mill Street And Second Avenue And Mill Street And Vista
Avenue Drainage Project.
Rcsolution 2008-134, Authorizing The City Manager To Select And Purchase Outright,
Vehicles And Equipment In An Aggregate Amount Not To Exceed $308,574 And To Purchase
Heave' Equipment With Accessories, Subject To Obtaining Financing, In An Aggregatc
Amount Not'I'o Exceed $1,937,597, From The Motor Pool Internal Service Fund.
Motion Passed
Unanimous
The clerk read the following approved consent agenda items:
Ordinance 2008-020, Amending Various Sections Of The Seward City Codc To Require The
City Of Seward Provide A Biennial Budget Beginning Fiscal Year 2010 (This wns iratrocluced
curd set for public hecrrittg January 12, 2009)
Resolution 2008-110, Adopting The Rater Enterprise Fund Budget For Calendar Year 2009.
Resolution 2008-1 l 1, Adopting The Wastewater Enterprise Fund Budget For Calendar Year
2009.
Resolution 2008-112, Adopting The Seward Marine Industrial Center Enterprise Fund Budget
For Calendar Year 2009.
Resolution 2008-113, Adopting The Parking Enterprise Fund Budget For Calendar Year 2009.
Resolution 2008-1 l4, Adopting The Hospital Debt Service Fund Budget For Calendar Year
2009.
Resolution 2008-115, Adopting The Motor Pool Internal Service Fund Budget For Calendar
Year 2009.
Resolution 2008-116, Adopting The Small Boat Harbor Enterprise Fund Budget For Calendar
Year 2009.
Resolution 2008-117, Adopting The Electric Enterprise Fund Budget For Calendar Year 2009.
City of Sewm~d, Alaska
December 08, 2008 Cite Council Minutes
Volume 37, Pale 671
Resolution 2008-129 Approving An Amendment To The Employment Agreement With The
~... City Manager.
Resolution 2008-130 Amending The 2008 Budget To Record Expenditures Of $175,509.90
Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees
Retirement System Liability, Per SB53.
Resolution 2008-132 Accepting Grant Funds In The Amount Of $3,500 From Alaska
Humanities Forum To Bc Utilized To Fund Production Of A 1964 Earthquake Documentary
And Appropriating Funds.
Resolution 2008-133. Officially Naming The Seward Long Term Care Facility As Seward
Mountain Haven, The Main Facility Building As Wesley Commons And The Residences As
Lupine Lodge, Eagle Lodge, Raven Lodge And Fireweed Lodge.
The November 24, 2008 Regular City Council Meeting Minutes Were Approved.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
A Proclamation Was Read For AARP'S 50`h Anniversary And Presented To Tom And
Nancy Osborne Who Recently Were Selected To Receive Alaska's 2007 AARP Andrus Award
For Community Service, The Association's Most Prestigious And Visible Volunteer Award Fur
Community Service.
Borough Assembly Report. Borough Assembly Representative Ron Long stated an
ordinance which would have introduced a moratorium on all development within the greater
Seward/Bear Creek flood service area, was pulled for more review. Money had been appropriated to
fund a hydrological engineer to do flood projects for the city. Long reported that on December 2,
2008, the 2009 state capital legislative priorities were finished. Some of the items supported were:
gas line projects, along-time energy plan, removal of Chuitna coal mine, flood map upgrade work
was supported, money was appropriated from cruise ship head tax for port and boat harbor security
dock improvements, and money was also appropriated to 2G unincorporated cities for revenue
sharing. Long answered questions and spoke on reasons why the floodplain moratorium failed at
introduction.
City Manager's Report. City Manager Phillip Oates wrote a letter to the Marine
Transportation Advisory Board and asked for ferry service be restored to Seward because of tourism,
recreation opportunities, economic growth and emergency response, all which mirrored the marine
transportation charter for why they exist. h~ response to questions about LED streetlights, Oates
stated these lights along 3"~ Avenue came from federal highway fiords, and were designed to meet
,,,_ federal guidelines and standards. He stated other similar lights being replaced as a powersaving idea
in Anchorage other than federal highway standard roads. Oates stated the city was captive under the
City of Seward. Alaska City Cuuncil Minutes
Decenifier 08, ?008 Volume 37, Page 672
guidance of the formula and standards for replacement based on the federal guidelines. The City
would be utilizing opportunities to replace city lights at a lower cost. ""'"'
Oates reported on expenditures up to $50,000 he was authorized to spend:
• Seward Mural Society. "I'he Seward Mural Society sent an RFP to local artists and three
designs were received. Justine Pechuzal's design was selected for the purpose of celebrating
Alaska's 50 Years of Statehood. He stated discussions were underway to secure permission
for the mural to be installed at the Post Office, and the mural would be on display during the
Statehood Symposium on May 2, 2009 at Legend's.
• SMIC Uplands Economic Feasibilit S~ tudy. Five proposals were solicited with Northern
Economics winning the bid, for an economic feasibility study concerning the SMIC uplands
boat storage yard and maintenance facility. The goal would be making an infornled decision
on how to manage this facility in the future and to closely examine the options of closing,
privatizing, or making the necessary improvements to the facility. The overall price was
approximately $25,000 and he hoped for council's blessing to proceed.
• Oates also stated the lease agreement for the Electric Department Building had to be renewed
in the amount of $9,950.00.
Fire and Electric Department. The Angel tree program was underway with a community
wrapping party on December 13, 2008 to wrap all the donated gifts. EMT-1 certification
training was going on with shidcnts taking final tests. Jeff Estes had accepted position of
Operations Supervisor for the Elech~ic Department. ~'
• Community Development. Oates slated when the Borough authorized the Mill Street grant
they incorrectly referenced Second Avenue instead of Chamberlain Street in the project title.
This should not impact the project or grant funds. The Borough Assembly failed to
introduce an ordinance placing a moratorium on Iloodplain development with the Seward
Bear Creek Flood Service Area because of concerns from the Arca Board. The city's
concerns were addressed under a proposed substitute ordinance.
• North Forest Acres Levee/Road Project. A Floodplain Development Permit was issued for
this project on November 21, 2008.
Oates reminded the public to keep vehicles and personal items out of the right of way for
extended periods of time for snow removal and also cautioned people conducting snow removal to
not pile loads onto the boardwalks that were not meant to support the heavy loads. The City was still
waiting on snowblower parts and he advised of the various holiday leagues and events occurring
under the direction of the Parks and Recreation Department Oates wished everyone a safe and
happy Christmas holiday.
In response to questions of Theresa Butt's windmill generation, Electric Dtility Manager
Tim Barnum stated the city was moving ahead very earefidly because this was a very complicated
issue enrivined with power purchase agreements and planning and zoning issues like towers, zoning
and noise. He stated the RCA recently chose to reject the federal net metering standard but agreed to
open addressing net metering specific to Alaska utilities. The Energy Policy Act of 2005 which -"
Crry of ~Sex~m•d, Alaska
December 08, 2008 City Couiu•il Mincrtes
Vol~rme 37, Pape 673
mandated nct metering, gave the opportunity to the regulatorycommissions ofvarious states to adopt
their own policies or opt out. Alaska's RCA chose to opt out of that standard and look at it later.
City Attorney's Report. City Attorney Cheryl Brooking stated they continued assisting
with municipal issues such as; the open meetings act, sales tax, contracts, resolutions and
ordinances, employment issues, land issues, North Forest Acres road project, SAAMS research,
flood management, harbor and SMIC environmental issues, contracts, and litigation and legal issues.
Port & Commerce Advisory Board Report. Ron Long stated the Board would he meeting
soon to discuss the north harbor development plan.
Resolutions Requiring a Public Hearing
Resolutions 2008-127, Amending The Port And Harbor Tariff Regulations Subsection 225.
Motion (Bardarson/Smith)
Approve Resolution 2005-127
Oates stated this tariff change would amend how the city charged for electric utilities at the
Small Boat Harbor and SMIC dock area. The current electric system in place was cumbersome for
transient customers, resulting in a delay in the billing process. Now, a Ilal daily rate would be
prepaid along with moorage. Oates stated this also proposed a change to electric use at the SMIC
facility which could lessen the shortfall on SMIC revenue.
Harbormaster Kari Anderson asked council to consider the changes since they had much
discussion between staff and had also researched other harbors. She was confident the city would
recover the costs of what was used. Anderson reported the last time the SMIC power use rate change
was examined was January 1994.
Notice of the public hearirxg beingposted and published as required hl~ law was noted and the public
hearing was opefaed. No one appeared to address the Council and the public hearing wets closed.
Anderson stated there was no set pattern across the board, so determined the rate structure
with other harbors. She reiterated this change was only for transient vessels staying l 5 days or less.
Motion Passed
Unanimous
NEW BUSINF,SS
Resolution 2008-118, Adopting The City General Fund Operating Budget For Calendar Year
2009.
Motion (Bardarson/Keil)
Approve Resolution 2008-118
Oates was proposing a balanced budget for ?009 with no increase in fees or revenues. He
thought the council and public had successful work sessions and the results of that hard work were
presented tonight for passage.
Ciry nrSeward, Alaska City Cawzcil Mimi~es
December 0$ 2008 Volurne 37, Page 674
Finance Director Kristin Erchinger also announced the council had four successful budget
work sessions and final changes were incorporated in the packet tonight. The primary changes
incorporated at the end were:
^ Put $30,000 ofnon-profit funding for the Boys & Girls Club back into the general fund thus
changing the amount to the Seward Community Foundation to $10,000, with $5,000 of that
establishing the endowment.
^ Increased revenues for DMV because of a new position.
^ Senior Center funding was increased from $17,000 to $50,000, Museum funding remained
at $4,800, Boys and Girls Club funding of $30,000 and $10,000 to the Seward Community
Foundation. An error was found and changed which reduced library personnel costs.
Erchinger also stated $80,000 to the Library/Museum project was added from the preliminary
budget numbers, and noted the Chamber of Couunerce would continue receiving 50% of the bed tax
monies, with $35,000 added for economic development.
1~1otion Passed Unanimous
Resolution 2008-126, Adopting The Capital Improvement Plan Budget For Calendar Year
2009 And Two Subsequent Calendar Years. (Arr updated sheet on the motor pool fund was
submitted for inclusion in the packet.)
lVlotion (Kell/Kellar) Approve Resolution 2008-126
Keil did not feel the topic of the Capital Improvement Plan had been discussed amongst the
city council for two years. She wanted to have a work session in June to discuss the next two
subsequent years.
Motion to Amend (Keil/Smith) Remove the words "and two subsequent
years" from the Title and Section 1 of the
resolution.
Kci1 wanted to have a more in-depth discussion in a work session at a later date on the 2010
and 2011 capital improvement projects.
Amendment Passed Unanimous
Motion Passed As Amended Unanimous
Resolution 2008-131, Accepting Grant Funds In The Amount Of $30,000 From The Kenai
Peninsula Borough For The Mill Street And Second Avenue And Mill Street And Vista
Avenue Drainage Project.
Motion (Bardarson/Smith) Approve Resolution 2008-131
City of Seward, Alaska
Dccenaber 08, 2008 Ci1v Council Minutes
Volume 37, Pa =c 675
Oates stated this grant money was earmarked for this project and could not be used for any
other purpose,
Public Works Director W.C. Casey stated this was a small project that could be completed
for $30,000, and would clean up easement issues. He acknowledged there would be challenges with
sizing of culverts and conflicts with utilities. Final analysis had not been made on how to mitigate or
channel the flow higher up on the mountain, or where the intake would be located. Casey
ascertained that Griswold had good points in her argument and there were no guarantees. He was
hopeful this grant would lend aid to constant rebuilding of the Dairy Hill road every time it rained
hard. The Seward/Bear Creek Flood Service Area Board supported this project. Casey stated the
goal was to mitigate hood damage on Dairy Hill road.
Dunham stated this would be a work in progress and was grant money from the borough.
Motion to Amend (Kellar/Keil) llelete the " 2"`' Whereas"
Amendment Passed Unanimous
Main Motion Passed As Amended Unanimous
Resolution 2008-134, Authorizing The City Manager To Select And Purchase Outright,
Vehicles And Equipment In An Aggregate Amount Not To Exceed $308,574 And To Purchase
Heavy Equipment With Accessories, Subject To Obtaining Financing, In An Aggregate
Amount Not 1'o Exceed $1,937,597, From The Motor Pool Internal Service Fund.
Motion (Keil/Bardarson)
Approve Resolution 2008-134
Public Works Director W.C. Casey would find the best deal they could on all the
purchases. He preferred to purchase two vehicles at the same time and possibly get a better deal He
noted another possibility would be to stagger the need in different years.
Keil thought purchasing all at once was a more efficient way of purchasing vehicles. She
reminded council all these purchases were vetted in the budget work sessions and were found to be
needed items.
Motion Passed
Unanimous
Resolution 2008-135. Adopting The Decisional Document For The North Forest Acres
Levee/Road Part 1.
Motion (Bardarson/Smith)
Approve Resolution 2008-135
Oates thought the pernits to begin the project would be in hand before Christmas and
reminded that this process had been in the works for over ten years. This resolution identified the
properties needed, allowed for negotiation for the purchase of those properties, and paved the way
for any subsequent action council needed to acquire the properties.
City of Seward, .9laska Cil}~ Coatruil Minute.~~
December O8, 2008 Vol~~me 37, Page 676
City Attorney Cheryl Brooking stated the levee road could not be constructed unless all the ---
property was acquired. This authorized the City Manager to negotiate acquisition of the land. It also
set the framework if negotiations Failed that the City Manager could come back to council to take the
land. The levee was intended to save the city, businesses and infrastructure from future flooding.
Brooking pointed out all nine parcels were undeveloped properties.
Oates stated the city would pay the appraised price for the properties. If unable to receive a
reasonable negotiation, the council could take the property and pay the appraised value. This
established the legal basis that these properties would have to be acquired to go any further in the
levee road project and to be able to use the funds allocated for it. He reminded council that every
step would have to go back before the council for approval.
Motion Passed
Unanimous
OTHER NEW BUSINESS
The December 22, 2008 Regular City Council Meeting W'as Cancelled.
INFORMATIONAL ITEMS AND REPORTS
Cite October Financials Were Discussed
COUNCIL COMMENTS
Smith wished everyone a Merry Christmas.
Valdatta wanted a crane for the harbor and wanted the city to look for grants to install it as
soon as possible.
Kellar wished everyone a Merry Christmas also and thanked the businesses for the extra
effort and ideas they put into the holidays.
Bardarson sent condolences to Kim Kowalski and her family for the passing of their father
Marty Kowalski and wished all a great holiday.
Dunham wished all a safe and happy holiday season and thanked Tim Barnum for his service
to the community. Dunham stated that $26 million dollars was needed to upgrade the electrical
system and noted Chugach Electric wanted to increase the rates. He stated the CEO of Homer
> lectric shook his head, was envious of Seward's electrical rates because Homer would be paying 19
cents a kilowatt soon. He thanked Carol Griswold for her bird report, and thanked employees for the
fine jobs they did.
CITIZENS' COMMENTS
City nfSeward, Alaska
December OAS, 2008 City Council Mi~uites
Volume 37, Pct =e G77
Lynn Hohl, thanked the council for their continued support of the youth of Seward. She
hoped with combined efforts &•om Seward Parks and Recreation and other youth programs, Seward
... could sustain them all. She wished council a Merry Christmas.
Carol Griswold stated on Resolution 2008- 131 that Dairy Hill road was really Chamberlain
Road. She appreciated Kellar's support for flood issues. She did not think $30,000 was enough to
contain the flood waters in the culverts. Borough and city residents paid into the flood fund that this
money was coming from. She thought the money would be better spent to punch through the
emergency access above Dairy Hi Il and come out on Phoenix Drive. She thought this idea would be
more effective for the community. Griswold thought that section of the road should he sacrificed
because any flood would wipe out any irnprovements made on that section. She asked for a
reconsideration to re-direct this funding. She appreciated the council's hard work and the time spent.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZF,NS' COMMENTS -None
ADJOURNMENT
The meeting was adjourned at 9:10 p.m.
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City~lerk
(City Seal)
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Willard Dunham
Vice Mayor