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HomeMy WebLinkAbout05232011 City Council Minutes City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 581 L CALL TO ORDER The May 23, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Lieutenant Butch Tiner led the pledge of allegiance to the flag. ROLL CALL There were present: Willard E. Dunham presiding and Marianna Keil Jean Bardarson Vanta Shafer Bob Valdatta Ristine Casagranda Tom Smith comprising a quorum of the Council; and Phillip Oates, City Manager Cheryl Brooking, City Attorney Johanna Kinney, City Clerk ABSENT — None CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Angela Buck spoke before the council as a Port and Commerce Advisory Board applicant. She had history as a former employee and liaison for the board and she felt a desire to serve on this board. Buck states she would like to help focus some of the attention to other businesses than the marine industry. Carl Norman spoke on fiscal responsibility. The new taxes up for discussion tonight were unreasonable. There was no sunset on the half percent sales tax increase or the alcohol tobacco tax. The amounts proposed were still under for the operating costs for the new library museum facility. He didn't think the city should consider these funding options — and asked council to hold off until there was more certainty. Steve Fink was also a Port and Commerce Advisory Board applicant before the council tonight. He was a commercial mariner for several years and also with Kenai Fjords tours as well as running a ferry in Hawaii. Has other skills to bring to the table including tech and would love to participate on this board. City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 582 Hilda Lespron, on behalf of the Seward Arts Council, passed out flyers for June 2, 2011 two plays at Resurrection Coffee House, an artist's impromptu art show and the Art Walk on June 3, 2011. Keith Campbell, spoke on the library museum project — stated this was the 44 time he was before the council on this issue. He represented the 17 member building committee in addition to several other volunteers. They were ready to move forward and were getting final prices. The committee has met every pledge assigned to them but $500,000, and recently a local citizen bequeathed $71,000 to the project. Campbell urged council to put this issue to bed and passed out invites to the ground breaking ceremony. Paul Rupple, spoke on behalf of the Seward Community Foundation — who created an endowment to benefit Seward. The foundation just finished their 2011 grant period and awarded almost $22,000 in major and minor grants. Rupple reported the Rasmuson Foundation has issued the Seward Community Foundation a challenge to the communities of Seward and Moose Pass. If donors in these two communities give a minimum of $15,000 by October 2011 to the SCF Unrestricted Fund, the Rasmuson Foundation will match this with a donation of $15,000. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda City Clerk Johanna Kinney pointed out clerical changes to the minutes and Council Member Casagranda pulled Resolution 2011 -038 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: The April 18, 2011 City Council Special Meeting Minutes And The April 25, 2011 And May 9, 2011 City Council Regular Meeting Minutes Were Approved. Resolution 2011 -039, Accepting Grant Funds From ALPAR And The Kenai Peninsula Borough And Appropriating Funds For A Parks And Recreation Litter Patrol. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A Military Appreciation Month and the Armed Services Combat Fishing Tournament proclamation was read. A proclamation was read for National Historic Preservation Month. Spring Creek Correctional Center Employee of the Year Erich Torrey was recognized by the City Council. City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 583 A proclamation for May as Memorial Poppy Month was read. City Manager's Report, City Manager Phillip Oates stated he was not going to give a verbal report this evening in the interest of saving time. He was prepared to give a longer report at the next meeting including his recent CVRF trip to Seattle. City Attorney's Report, Cheryl Brooking stated for the last few months the office continued to work on ordinances and resolutions, the library museum project and funding sources including the payment of general obligation bonds, the energy funding proposal by SAAMS, business license requirements, land use /platting issues, harbor and SMIC land use matters, and electric issues such as utility rights, contract matters and the railbelt cooperation in the formation of ARCTEC. Brooking reported the Ninth Circuit remanded the RBCA vs. the City of Seward again to the district court on the question of attorney fees. Mayoral Report, Mayor Willard E. Dunham stated he attended a Borough mayor's meeting regarding the funding for the Corps of Engineers budget. He requested for Vice Mayor Bardarson to report on her trip to San Francisco — Bardarson reported the city was invited to the Dept of Tourism and Commerce for their International Pow Wow to meet with the state department as well as 27 delegates from Japan, Japanese Consulates, the President of Tourism from Japan, and Japanese travel agents. The State Department asked Seward to come because of past conversations about the WADA group and the possible marathon races in Seward. There were millions of marathon racers in Japan, and the State Department wanted Seward to let the Government of Japan know of Seward's interest in planning something in the future. Bardarson said it was a successful trip in getting Alaska and Seward's name out there. Other Reports, Announcements and Presentations - None PUBLIC HEARINGS Resolution 2011 -037, Recommending Kenai Peninsula Borough Approval Of The Waterfront Park Preliminary Replat Which Establishes The Outer Boundaries Of The Waterfront Park, Includes The Vacation Of All Interior Undeveloped Rights -Of -Way, Easements And Interior Platted Lot Lines; Dedicates Additional Rights -Of -Way And Easements; Located Predominately Within The Park Zoning District. Oates noted the area in discussion tonight. This was to give recommendation of approval to the Kenai Peninsula Borough of the replat in Waterfront Park. The replat contained two zoning districts. Planner Donna Glenz said the support for this had been ongoing for several years. Administration recommended approval. 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 (Bardarson /Keil) Approve Resolution 2011 -037 City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 584 Keil stated this was something that had been a goal of the Planning and Zoning Commission for some time now. In response to Keil, Glenz said Boulder Field was included in this area but if council wanted to sell or lease it in the future, it would just have to be replatted out. She felt there were many reasons for it to be in here currently, though. Dunham was surprised with the lot lines as this area used to be mostly railroad yards — he was surprised to see there were even lines in the area to begin with. Glenz said the property lines were put in up to Monroe since 1905 as well as the rights of way. Valdatta stated Boulder Field should stay as a ball park. Keil congratulated staff on this accomplishment. Motion Passed Unanimous Ordinance 2011 -003 Amending Seward City Code Sections 5.35.010 And 5.35.035 To Allow For An Increase In Sales Tax For Alcohol Beverages And Tobacco Products. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. (Clerk's Note: At this point in the agenda, this Ordinance received a public hearing only — no motions for action were made by council here. The purpose was to allow the council to hear public testimony on this Ordinance before the council discussion item on the various Library /Museum Funding Options. Action on this Ordinance occurred after the council discussion item below). Sol DeMoss, co -owner of the Seward Alehouse, stated this ordinance was singling out individuals and felt the load should be shared equally throughout the community. DeMoss was not here to discuss supporting or opposing the library /museum, it was more about the 10% increase which equated to two employees in his business. Council was asking them to pick up this load after a recession they were still trying to recover from. He did not think it was fair to put this burden on just a small group of people /business owners. DeMoss did not think business were fully recovered to allow for this 10% increase. If this Ordinance was enacted, he asked for a reconsideration of a lower percent -- or even better, a half percent sales tax for everyone. Carl Norman felt this was a targeted tax to a minority. This tax would typically affect lower income people, he felt. Most people were not speaking up on this issue out of fear. It was an unfair tax and it wouldn't even foot the bill of the cost of the project. Norman stated the one mil increase in property tax failed because it was a burden on property owners. This was the same kind of scenario Norman felt, so why was council considering this? Working people have agreed with him on not being able to afford a new library /museum. He noted there was no sunset clause in this ordinance. Tom Tougas gave a brief history of the project to date. He stated the decision to move ahead with building this project was a community project and process that had been before the council for 7 years. The council, at the time, was concerned that the buildings in town were too old and needed to be replaced. In 2004, the council asked a group of citizens to pursue the building, in which the proposal was a $23 million dollar building and it was cut in half and the council asked the community group to raise half the money. The community group raised $7 million dollars. Then the council asked the public if they would fund up to a $5 million dollar General Obligation bond, in City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 585 which they voted yes, and it was a legally bound vote. He felt this tax issue was a budget issue. This idea started with the City Council. More revenue was generated by the visitors than the residents. He urged the council to make a decision and keep from delaying it. The council started this and needed to finish it. COUNCIL DISCUSSION ITEM Council Discussion on Library /Museum Funding Options. Shafer was concerned with the voters saying they did not want a sales tax increase. She was in favor of the alcohol tobacco tax — but she was willing to amend the ordinance to include a sunset clause in the ordinance. She agreed they needed to put a time limit on this. Smith agreed that whatever they implement should have a time limit on it. As far as alcohol tobacco tax went, he didn't like it and didn't think it was right to earmark certain people. Bardarson stated that the voters said to complete the library /museum, but that they did not want a sales tax. Casagranda did not feel the alcohol tobacco tax was fair and has only heard from citizens who didn't feel the burden should be on them with a seasonal sales tax, either. Valdatta asked for a tobacco tax years ago and didn't understand why alcohol needed to be included. City Attorney Brooking noted if Seward wanted to tax alcohol, they have to tax another item as well. Oates stated timing on this was important. The next bond meeting was the end of July. It would be possible to make this deadline if council makes a decision soon. Assuming the application was submitted timely, the city could have financing available late August or September. Dunham was against the alcohol tobacco tax — he agreed with the comments made that to lay this on a small percentage of users was unfair. He could not in good faith vote for this for the library /museum. Oates added if none of these options passed, the city would be in a tight spot. Unless they were prepared to take the money out of General Fund reserves, he didn't see how the city could continue ahead with the contract. ORDINANCES FOR ENACTMENT Ordinance 2011 -003, Amending Seward City Code Sections 5.35.010 And 5.35.035 To Allow For An Increase In Sales Tax For Alcohol Beverages And Tobacco Products. Motion (Bardarson /Shafer) Enact Ordinance 2011 -003 Motion to Amend (Shafer /Keil) Amend Ordinance 2011 -003, to as follows (strikethrough — deletion, italics — addition): City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 586 "WHEREAS, it has been determined to be in the best interests of the City to increase ,,., the City's sales tax levied on alcohol beverages and tobacco products from four percent (4 %) to fourtccn (' 4°'-` twelve (12%)." Section 2 (b): "Effective January 1, 2012, in addition to the sales tax levied and collected under subsection (a) of this section, there shall be levied and collected an additional sales tax equal to ten eight percent of the gross proceeds of the retail sale of alcoholic beverages and tobacco products sold in the city." Shafer originally asked for an amendment for a six percent increase, instead of the proposed ten percent increase. Oates stated if council was going to make this cut, it could be reducing almost in half. He reminded the council the operating costs were going to be addressed in the budget which would also be an increase. Shafer and Keil revised their amendment to an eight percent overall increase. Motion to Amend Passed Yes: Valdatta, Keil, Casagranda, Shafer, owl Smith, Bardarson No: Dunham Main Motion Passed Yes: Valdatta, Bardarson, Shafer, Keil No: Casagranda, Smith, Dunham Council recessed at 8:22 p.m. Council resumed at 8:27 p.m. UNFINISHED BUSINESS Ordinance 2010 -009, Amending Seward City Code Sections 5.35.055 To Create A Revenue Source For Repayment Of The Up To A $3.73m General Obligation Bond For Construction Of The Seward Community Library Museum By Establishing A Variable Seasonal Sales Tax That Increases The City Of Seward Rate To 5% During April Through September Of Each Year And Reduces The Rate To 3% In October Through March Of Each Year. (Originally postponed from the January 24, 2011 Council Meeting, original motion made by Councilmember Keil and seconded by Councilmember Shafer). Motion (Keil /Shafer) Enact Ordinance 2010 -009 (from January 24, 2011) City Clerk Johanna Kinney noted the laydown version of this Ordinance before the Council tonight. There was additional language, as well as including a new effective date of April 1, 2012, as City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 587 the original version was effective April 1, 2011. Council members Keil and Shafer revised their motion to enact the laydown version of Ordinance 2010 -009. Keil stated this was her second choice for funding the library museum project. Motion to Amend (Casagranda /Shafer) Amend Ordinance 2010 -009 as follows (strikethrough — deletion, italics — addition): "WHEREAS, the combined Kenai Peninsula Borough and City of Seward variable seasonal sales tax of 8% from April through September and 6% from October through March is expected to provide sufficient revenue to repay principal and interest on up to a 2-5 10 year $3,73 $3.5 Million General Obligation Bond, and allow completion of the new library museum project •• • 11 111 • • museum; and ", "WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this sales tax change should sunset when the up to a $3.73 $3.5 Million General Obligation Bond is paid in full .. • .. • .. " Section 2: "These changes to the City of Seward sales tax rates are for the purpose of paying the annual debt service for up to a r 10 year $373 $3.5 Million General Obligation Bond, to complete the library museum project, and t^ co and shall sunset in 11 years." Motion to Amend Failed Yes: Smith Casagranda, Keil No: Bardarson, Valdatta, Shafer, Dunham Ciry of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 588 Motion to Amend (Dunham /Smith) Amend Ordinance 2010 -009 as follows (strikethrough — deletion, italics — addition): "WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this sales tax change should sunset with the up to a $3.73 Million General Obligation Bond is paid in full • • • • • • • • • • 1 1 1 1 ! • Section 2: "These changes to the City of Seward sales tax rates are for the purpose of paying the annual debt service for up to a 25 -year $3.73 Million General Obligation Bond, to complete the library museum project, .•. . • . .. .•• • -a nnttal-operating-eosts. INJ Motion to Amend Passed Yes: Smith, Shafer, Casagranda, Bardarson, Dunham No: Keil, Valdatta Motion (Casagranda /Keil) Amend Ordinance 2010 -009 as follows (strikethrough — deletion, italics — addition): "WHEREAS, the combined Kenai Peninsula Borough and City of Seward variable seasonal sales tax of 8% from April through September and 6% from October through March is expected to provide sufficient revenue to repay principal and interest on up to a 2 15 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $99,000 annually to assist in paying for the increases in personnel and operating costs for the new library museum; and" Section 2: "These changes to the City of Seward sales tax rates are for the purpose paying the annual debt service for up to a City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 589 25 15 -year $3.73 Million General Obligation Bond, to complete the library museum project and shall sunset on December 31, 2027. Motion to Amend Passed Yes: Smith, Casagranda, Bardarson, Keil, Shafer, Dunham No: Valdatta Main Motion Failed Yes: Smith, Casagranda No: Bardarson, Keil, Valdatta, Shafer, Dunham Ordinance 2011 -002, Increasing The City Sales Tax From Four Percent To Four- And -One- Half Percent, Beginning January 1, 2012. (Originally postponed from the April 25, 2011 Council Meeting, original motion made by Vice Mayor Bardarson and seconded by Councilmember Shafer). Motion (Bardarson /Shafer) Enact Ordinance 2011 -002 (from April 25, 2011) Motion to Amend (Casagranda /Keil) Amend Ordinance 2011 -002 as follows: in Sections 1 and 2 of the amended code language, add "Beginning January 1, 2027, the tax shall be 4 %." Motion to Amend Passed Yes: Keil, Shafer, Casagranda, Bardarson, Dunham No: Smith, Valdatta Main Motion Failed Yes: Casagranda No: Valdatta, Shafer, Smith, Bardarson, Keil, Dunham NEW BUSINESS Resolution 2011 -038, Authorizing The City Manager To Enter Into Change Order Number One For An Amount Not -To- Exceed $7,538 Funded By The EECBG Grant For A Window Upgrade And Providing An Extension Of Time To Complete Work By June 30, 2011. Motion (Bardarson /Shafer) Approve Resolution 2011 -038 Casagranda had concerns with the amount being higher than the other bids with the approval of this change order. If the windows were coming from Fairbanks, it shouldn't take this long for them to get here, she felt. Keil found it bothersome that staff didn't recognize it was lower grade windows in one proposal and higher grade in another. City of Seward, Alaska City Council Minutes May 23, 2011 Volume 38, Page 590 Bardarson said there should be specifications in the proposal. Oates agreed and stated the specifications would be re- written if they could do it all over again. Shafer said the other bidder contacted her and wondered if the project /grant was going to be penalized for this going late. Smith said the awarding bidder met the specifications, and it should be a change order if the amount was higher. Oates said admittedly this was not done the way it should have been done. Casagranda asked how many doors and windows were replaced at this point — Oates stated he did not know. She felt it was a long extension and wondered if it would hurt the city's chances with the grant. Oates said they would still be eligible. Keil said they should owe us money for not completing on time. Shafer said she was frustrated, but also felt the city was stuck in moving forward with this. Smith said this was bad contracting procedures, and Oates agreed. Casagranda said she would like to see better contracting procedures in the future. Smith asked the attorney for review. Brooking said this would not hurt the city legally. Brooking said she had not seen any wrong doing by the city in this case. Motion Passed Unanimous Resolution 2011 -040, Appropriating $232,572.81 To Supplement A State Legislative Grant To Dredge The Approach And Berthing Basins Of The Alaska Railroad Dock To Accommodate Cruise Ships. Motion (Bardarson /Shafer) Approve Resolution 2011 -040 Oates explained the intent and description of the appropriation as stated in the agenda statement. Administration recommended approval. They were legally liable to reimburse the Railroad for these costs. Motion Passed Unanimous OTHER NEW BUSINESS By a vote of 6 -1, Council voted and appointed Steve Fink to the Port and Commerce Advisory Board with a term to expire July 2012. Applicants were Angela Buck and Steve Fink. COUNCILS' COMMENTS Shafer congratulated the Seward High Seniors. She was glad council finally passed something to get the library /museum built. City of Seward, Alaska City Council Minutes May 23, 2011 Volu,ne 38, Page 591 `r. Keil welcomed the combat fishermen to Seward for the annual tournament. She requested a harbor opening weekend proclamation next year. Bardarson agreed and sent her congratulations to seniors. Casagranda congratulated all students for competing another year of school. Smith said they deserved a pat on the bat for moving forward on the library museum. Valdatta said there was a lady in the YMCA instrumental with the combat fishing tournament that should receive some congratulations and recognition. Dunham thanked the graduates and welcomed them to the world. He gave a special thank you and congratulations to the runners who did so well at the state track meet. Dunham thanked the city crews and Michelle Weston for getting the flags up around town. CITIZENS' COMMENTS Keith Campbell thanked council for the action this evening. Invited all to the ground breaking ceremony on June 8, 2011. Mary Tougas reiterated what Oates said about the bond proposal and the city should get that out soon. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Council requested a special meeting for June 1, 2011 at 6:00 p.m. to set the final bond amount. ADJOURNMENT The meeting was adjourned at 9:40 p.m. ,,/ gplek J.hanna Kinney, CMC illard E. Dun am ' ity Clerk f „,� Mayor 4 11 1 or 0 A s ° (City Seal) t t' . + •, 1 �' � . s resew °° P '��