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HomeMy WebLinkAbout09122011 City Council Packet Seward City Council Agenda Packet „ t 4 -4 4 44 - 1 - sr•P • J • f • ii: 41 , i ikt .4,1,.,,wir. . , .. ,,. Never Forget 9 -11 -2001 September 12, 2011 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska 11111 ,! CITY COUNCIL MEETING AGENDA {Please silence all cellular h pones and pagers during the meeting} 44111, September 12, 2011 7:00 ..m. Council Chambers 1. • CALL TO ORDER Willard E. Dunham 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2011 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING [Those who Jean Bardarson have signed in will be given the first opportunity to speak. Time is Vice Mayor limited to 2 minutes per speaker and 30 minutes total time for this Term Expires 2012 agenda item.] Robert Valdatta 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval Council Member of Consent Agenda passes all routine items indicated by asterisk ( *). Term Expires 2011 Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is Tom Smith returned to the Regular Agenda] Council Member Term Expires 2011 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Vanta Shafer A. Proclamations and Awards Council Member Term Expires 2011 1. Certificate of Memoriam for Patricia Redmond Marianna Keil B. Borough Assembly Report Council Member C. City Manager's Report Term Expires 2012 D. Mayor's Report E. Other Reports and Presentations Ristine Casagranda Council Member 1. Kenai Mountains- Turnagain Arm National Heritage Area (KMTA Term Expires 2012 NHA) Presentation 2. 2012/2013 Budget Introduction Phillip Oates City Manager Johanna Kinney City Clerk Cheryl Brooking City Attorney City of Seward, Alaska September 12, 2011 Council Agenda Page 1 mimmismir 7. NEW BUSINESS A. Resolutions *1. Resolution 2011 -070, Approving A Financial Advisory Agreement With Blitch Associates, Inc. B. Other New Business Items *1. Approval of the August 22, 2011 City Council Regular Meeting Minutes and the August 29, 2011 and September 1, 2011 City Council Special Meeting Minutes. *2. Appoint Mark Kansteiner, Betty Casey, Rose MacSwain, Mary Williamson, and James Herbert to serve on the Election Board for the 2011 Municipal Election on October 4, 2011. 8. INFORMATIONAL ITEMS AND REPORTS A. Letter to Fairbanks Northstar Borough and National Association of Counties RE: U.S. Army Corps of Engineers Pacific Ocean Division Marine Funding. 9. COUNCIL COMMENTS 10. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to speak] 11. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 12. EXECUTIVE SESSION TO DISCUSS CITY MANAGER CANDIDATES 13. ADJOURNMENT City of Seward, Alaska Council Agenda September 12, 2011 Page 2 Patricia Opheen Redmond September 12, 1955 - August 18, 2011 The Seward City Council is gathered together in memoriam to honor Patricia 'Trish" Redmond. Working as the first female Resident Engineer for the Corps of Engineers, she oW was an ardent supporter of quality design and engineering, environmental conservation, and the UAA Engineering Department. She was a huge help to our community for our Corp of Engineers projects. She believed in the value of public service and her passion for helping her community was extensive. The Seward City Council is saddened to hear of this tremendous loss to her family, to our city, to our state, and to our country. We hereby present this Special Recognition in Memoriam to the family and extend our most sincere condolences. Dated this 12` day of September 2011 fl "s 3 kx Willard Dunham Mayor City of Seward, Alaska 3 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2011 -070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A FINANCIAL ADVISORY AGREEMENT WITH BLITCH ASSOCIATES, INC. WHEREAS, the City of Seward previously maintained a contract with Wells Fargo Brokerage Services, LLC ( "WFBS ") to provide financial advisory services, with said contract having terminated effective November 6, 2009; and WHEREAS, the City has maintained a financial advisory relationship with Don Grimes ( "Grimes ") since the early 1980s when the City obtained financing for the Spring Creek Correctional Center, and the contract between the City and Wells Fargo Brokerage Services, LLC was terminated by WFBS upon Mr. Grimes' retirement from that firm; and WHEREAS, Grimes has joined Blitch Associates in Houston, Texas, as Senior Vice President; and WHEREAS, Grimes will continue to offer financial advisory services in Alaska under his new affiliation and has expressed a desire to continue to represent the City of Seward under agreement similar to the one previously in place with WFBS; and WHEREAS, the City's agreement with Blitch Associates provides that the City may terminate the agreement upon 30 days' notice; and WHEREAS, Blitch Associates understands the City's desire to specifically continue the long - standing consulting relationship with Don Grimes, and that by entering into this agreement the City expects to continue its relationship with Mr. Grimes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a financial advisory services agreement with Blitch Associates, Inc. on behalf of the City of Seward. A copy of the contract is attached hereto and incorporated herein by reference. Section 2. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12` day of September, 2011. Council Agenda Statement Meeting Date: September 12, 2011 Through: Phillip Oates, City Manager f From: Kristin Erchinger, Finance Director / °— f Agenda Item: Financial Advisory Contract BACKGROUND & JUSTIFICATION: The City of Seward has worked exclusively with Don Grimes as the financial advisor of the City for nearly three decades, since Mr. Grimes helped the City obtain financing for Spring Creek Correctional Center in the 1980s. Over the years, Mr. Grimes has brought his knowledge of the City and its financial operations to bear on many capital financing transactions including: assisting the City with devising financing plans; maximizing cost savings to the City in bond refundings; helping to represent the City at meetings involving the authorization, issuance or approval of the City's bonds; and advising the City on the best time to participate in financing transactions given market conditions. Ultimately, the job of a financial advisor is to represent the City's interests in all requested financing transactions. The City has historically paid for financial advisory services primarily when issuing bonds. The base fee for a bond issuance is typically $10,000 plus 1/8 of 1% of the par amount of the bonds ($1.25 per $1,000). When bonds are issued through the Alaska Municipal Bond Bank, the charge is 50% of this amount, and the City's bonds are almost exclusively issued through the Bond Bank. Mr. Grimes' rate to the City for a bond financing transaction has not increased in more than 15 years. In addition, a financial advisory services contract enables the City to utilize the services of the financial advisor to provide other financial advice. Although the City's financial advisory relationship has been exclusively with Mr. Grimes, the contract is between the City and Mr. Grimes' firm, Blitch Associates, Inc. In November, 2009, the City's relationship with Wells Fargo Brokerage Services, LLC was terminated when WFBS submitted their Notice of Resignation to the City, upon departure from the firm of Mr. Grimes. This is a standard practice in the industry. The administration recommends this contract as a cost - effective way to obtain quality financial advisory services from an individual with decades' worth of experience with the City of Seward's specific financial circumstances and needs. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ATTORNEY REVIEW X Yes No FISCAL NOTE The City does not budget for financial advisory services. However, at the time of a bond issue, the cost of financial advisory services will become a cost of the issuance of the bonds, and will be factored into the overall bond issue. Any specific additional financial advisory services will be charged to the finance department's existing budget. Approved by Finance: 1,14442Z;Z:144...eiti.,#■ RECOMMENDATION Seward City Council approve Resolution 2011- 01° , approving a financial advisory services agreement with Blitch Associates, Inc. CONTRACT FOR FINANCIAL ADVISORY SERVICES This Contract for ongoing Financial Advisory Services (the "Contract ") is made as of October_, 2011, by and between the City of Seward, Alaska (the "City ") P.O. Box 167, Seward, Alaska 99664 -0167 and Blitch Associates, Inc. ( "Blitch ") 32 Pirate's Cove Lane, PO Box 66 St. Mark's, Florida 32355. Recitals 1. The City has authorized or contemplates authorization of the sale of bonds, certificates of obligations, anticipation notes or other forms of debt instruments (herein, "bonds ") in amounts to be determined for the purpose of providing funds for the acquisition and construction of certain capital improvements and /or other facilities and the cost of services related to the issuance of such bonds and the acquisition and construction of such facilities. 2. The City has previously retained or will retain Bond Counsel who will prepare the proceedings and advise the steps necessary to be taken in the legal issuance and final delivery of bonds and who will issue an opinion approving the legality of such bonds. Now, therefore, in consideration of the promises and other good and valuable consideration and of the mutual benefits, covenants and respective agreements hereinafter set forth and expressed, the City and Blitch agree as follows: I Blitch will serve as financial advisor to the City in connection with the sale of bonds by the City and in such capacity Blitch will perform the following services: 1. To review all sources of revenues of the City, in order to devise a plan of financing, a maturity schedule for each issue of bonds, options of prior payment and other such matters of a financial nature, all in order to issue bonds under terms and conditions most advantageous to the City consistent with a minimum effective interest rate. 2. To have a representative available at appropriate meetings called by any State agency, or at other public hearings, in connection with the authorization, issuance or approval of the City's bonds. 3. To advise the City of current bond market conditions, forthcoming bond issues and other general information and economic data which might normally be expected to influence bids and interest rates and to recommend a sale date and bidding conditions. CONTRACT FOR FINANCIAL ADVISORY SERVICES City of Seward, Alaska and Blitch Associates, Inc. Page 2 4. To prepare and submit to the City Council of the City (the "Council ") the City's Official Statement or other financial applications (the "Official Documents "), containing information and data ordinarily found in such documents and to arrange for the publication and distribution of the Official Documents. Unless the particular financing does not require such Official Documents, they shall be submitted by Blitch to the Council for its approval, which approval must be received prior to the sale of any issue of City bonds. 5. If appropriate, to prepare and process applications to municipal bond insurers guaranteeing the timely payment of principal and interest on City bonds and /or to national rating services for municipal bond ratings, the fees and relating travel expenses for which are to be paid by the City. II The City, in consideration of the services to be performed by Blitch, will pay a base fee of $10,000 for each issue of bonds plus an additional $1.25 per $1,000 (1/8 of 1%) of the par amount of the bonds, to be computed on each installment of bonds issued by the City. When two or more issues are marketed and delivered simultaneously and are substantially the same credit, such issues will be billed as one series. Charges for bonds issued through the Alaska Municipal Bond Bank may be reduced by mutual agreement, to an amount not less than 50% of the above formula amount. Such fee shall become due and payable as soon as practicable after delivery of the bonds to the underwriter and shall be contingent on the sale and delivery of the bonds. It is specifically understood that Blitch will not be permitted to bid, underwrite, buy, sell, or otherwise participate in the sale of bonds of the City. The City will pay the costs of compiling, printing and distribution of the Official Documents (if determined necessary to the financing), the cost of printing and delivery of the bonds, and the fees of Bond Counsel. III 1. At the request of the Council, Blitch will, from time to time, advise and provide assistance to the Council and its consultants on the setting of rates and charges necessary to the City's efficient and prudent administration of its debt and operations. 2. At the request of the Council, Blitch will prepare certain reports or appropriate sections thereof, to the State of Alaska or other regulatory agencies on behalf of the Council, and will assist other consultants in the preparation of their reports. 1 CONTRACT FOR FINANCIAL ADVISORY SERVICES City of Seward, Alaska and Blitch Associates, Inc. Page 3 3. In consideration of such services other than those related to the authorization, issuance and sale of bonds, Blitch will charge a fee of $190 per hour, payable as incurred, but in no case shall any particular task be undertaken without the City's specific prior approval. 4. Mr. Grimes will at all times be registered as a "municipal advisor" in compliance with federal law and regulations. IV This Contract may be terminated by either party at any time upon the delivery of thirty days' written notice to that effect to the other party; provided, however, upon termination, the City shall pay all expenses incurred by Blitch and paid to unaffiliated third parties upon presentation of such paid invoices. In Witness Whereof, the parties hereto have caused the Contract to be signed in duplicate originals as of the date and year first above set forth. BLITCH ASSOCIATES, INC. By: Don W. Grimes Senior Vice President CITY OF SEWARD, ALASKA By: Phillip Oates City Manager, City of Seward ATTEST: City Clerk, City of Seward City of Seward, Alaska August 22, 2011 City Council Minutes Volume 38, Page CALL TO ORDER The August 22, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance to the flag. ROLL CALL There were present: Willard E. Dunham presiding and Jean Bardarson Vanta Shafer Marianna Keil Bob Valdatta Ristine Casagranda Comprising a quorum of the Council; and Phillip Oates, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Absent — Tom Smith CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING - None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda The following was pulled from the agenda: Ordinance 2011 -005, Amending Portions Of Seward City Code 15.10.220 Development Requirements Table 15.10.225 Land Uses Allowed And 15.10.225 Land Uses Allowed Table To Change, Update And Accommodate The Wishes Of The Public. The following was added to the agenda: Discussion on City Manager hire. Schedule work session to discuss extending the transfer pit and the length of the rails at Seward Ship's DryDock to accommodate US Coast Guard vessels. Motion Passed Unanimous City of Seward, Alaska City Council Minutes August 22, 2011 Volume 38, Page The clerk read the following approved consent agenda items: The August 3, 2011 City Council Special Meeting Minutes And The August 8, 2011 . City Council Regular Meeting Minutes Were Approved. Council Scheduled A Special Meeting For August 29, 2011 To Approve The Contract For Marine Engineering Services For The Seward Marine Industrial Center For The Development Of A Harbor Breakwater And Harbor Expansion Project To Follow Adjournment Of The 6:00 P.M. Building Codes Work Session. Resolution 2011 -063, Appropriating Funds In The Amount Of 7,322.00 From The Harbor Enterprise Fund Balance To Cover Excess Costs Associated With Critical Float Repairs. Resolution 2011 -064, Appropriating $250,000 In Grant Funds From The State Of Alaska For Alutiiq Pride Shellfish Hatchery Improvements And Expanding Shellfish Aquaculture In Alaska. Resolution 2011 -065, Appropriating 5304,290 In Library Grant Funds And Approving Amendment No. 3 For The Contract With Rise ECI /flyer For Architectural Services During The Construction Phase Of The Seward Museum /Library. Resolution 2011 -066, Appropriating $144,965 In Library Grant Funds And Approving Amendment No. 4 For The Contract With Rise Alaska For Project Management During The Construction Phase Of The Seward Museum/Library. Resolution 2011 -067, Authorizing The City Manager To Submit An Application To The Alaska Energy Efficiency Revolving Loan Fund For An Aggregate Amount Not To Exceed $678,533 To Pay The Cost Of Energy Upgrades At The Alaska SeaLife Center Building. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards The following proclamations and awards were given: 1. Founder's Day Proclamation 2. National Preparedness Month 3. Welcome to Alaska Recreation and Park Association (ARPA) Representative Chris Tuck, District 29, South Central Anchorage, made an impromptu visit and was recognized by the Mayor. He said there were 138 high schools in the state of Alaska with fewer than 30 students; of that, roughly 70 high schools had less than 10 students. He was concerned about keeping children in school because if there were fewer than six students in the school, the school would be closed. The Jesse Lee Horne School project was a great solution for Cite of Seward, Alaska August 22, 2011 City Council Minutes Volume 38, Page those few students from many rural areas throughout the state to attend a good school, without the entire family having to uproot and move from their community. Having the Jesse Lee Home School open up would provide a sense of pride for the community and students alike. He encouraged the council to keep moving forward with the project. Chamber of Commerce Report, Cindy Clock stated the Silver Salmon Derby was a great success. Ticket sales: 4,500 daily tickets sold; 3,500 Derby tickets sold; 2,000 more pounds of fish turned in this year than last year; total poundage turned in this year was 12,314 pounds. She thanked the 150 volunteers who took part and supported the Derby and she thanked the city and harbor for their support. She noted that women fishermen came on strong this year. The Discovery Channel filmed during the Derby and would be showing it late this year or early in 2012. The Derby volunteer appreciation would be a Fox Island dinner cruise on September 2, 2011. The Chamber would be working with the Alaska Railroad to host the first -ever Fall Foliage Train on September 17 -18, 2011; passengers would receive passbooks (printed by the Alaska Railroad) to bring around to businesses to be stamped. The Chamber would also host the Meet the Candidates night prior to the election. City Manager's Report, City Manager Phillip Oates thanked the Chamber for a successful Silver Salmon Derby. He also recognized several new employees: Robert Ivy joined the Police Department as a new dispatcher; Shannon Huston would be starting in mid- September as the new Electric Executive Assistant; and Tarrah Beals started as the new Utility Counter Cashier /Receptionist. Oates asked for an agenda item to be added to the September 26, 2011 City Council regular meeting agenda regarding the Management & Operating Agreement for Seward Ship's DryDock. Oates and Mayor Dunham would be meeting with Governor Parnell's Chief of Staff on August 30, 2011 to discuss the Coastal Villages Region Fund. The City of Seward received two responses to the recent request for proposal regarding the Seward Marine Industrial Center's engineering contract; one from R &M Consultants and one from PND Engineers Incorporated. R &M Consultants would be awarded the bid at the August 29, 2011 Special Meeting of the City Council. The Scheffler Creek Pedestrian Bridge was opened this evening with a ribbon cutting ceremony. Oates invited everyone to go and visit the bridge. The closing for the general obligation bond for the Library Museum Project would be held on September 14 -15, 2011. As City Manager, Oates would be accompanied by the Finance Director Kris Erchinger, City Clerk Johanna Kinney, and City Attorney Cheryl Brooking. Mayor's Report, Mayor Willard E. Dunham stated this had been a ribbon - cutting month. It was a great Derby; he complimented the work the Chamber did and noted he enjoyed being a judge. Dunham said he attended the Mayors' Conference in Sitka and he had the opportunity to speak with the NAPCO representative from Washington, D.C. plus two mayors who asked to get City of Seward, Alaska City Council Minutes August 22, 2011 Volume 38, Page involved in funding for the US Army Corps of Engineers project. Dunham spoke with Attorney General Tom Burns about the permit process and that its benefit for the state; following up on that conversation, Dunham spoke today with Assistant Attorney General Tim Condon from Juneau and said he wanted the state to get involved. Randy Ruaro, Deputy Chief of Staff, and Senator Stedman asked about the progress of the Library Museum Project; the Senator said he saw more money going into that project and that other cities were pursuing similar endeavors. The city received an invitation from Yeosu, Korea for five people to attend the World Expo as their guests in May 21 -24, 2012. The Jujiro Wada group would be corning in September, bringing 25 visitors to go to Nome and Fairbanks, and they also wanted to come to mile zero in Seward. PUBLIC HEARINGS Resolution 2011 -061, Authorizing The City Manager To Enter Into A Lease Agreement With The United States Of America For Tract A, Marina Subdivision, Seward Small Boat Harbor, For The Purpose Of Operating A Marine Dispatch Building. 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 -061 Oates recognized Scott Bartlett from the Army Recreation Center. He also recognized Kari Anderson and thanked her for her service as Harbormaster. Scott Bartlett stated that he saw the potential for upgrading the existing building. It had been five years since the project started; most of the delays had been due to the Army Corps of Engineers giving the land back to the City of Seward. He said it was important to get the project off the ground this year. Motion Passed Unanimous Resolution 2011 -062, Authorizing The City Manager To Enter Into An Amendment To The Lease Agreement 75 -055 With The United States Of America For Lot 2, Block 6, Marina Subdivision, Seward Small Boat Harbor, For The Purpose Of Extending The Term Of The Lease To October 31, 2011. 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 -062 Oates stated this lease extension of one month would allow the US Coast Guard enough time to move their building; no costs would be incurred by the city. Mayor Dunham asked why the city had to go through this legal process; Oates responded that the relationship between the US Coast Guard and the Alaska Railroad made things more complicated. City of Seward, Alaska August 22, 201 ] City Council Miiautes Volume 38, Page Motion Passed Unanimous NEW BUSINESS Ordinances for Introduction Ordinance 2011 -004, Amending Portions Of Seward City Code 15.10.140 Definitions To Change, Update And Accommodate The Wishes Of The Public. Motion (Bardarson /Shafer) Introduce Ordinance 2011 -004 Mayor Dunham questioned why these actions were being taken at this time. Assistant City Manager /Community Development Director Michelle Weston replied that it was part of an ongoing effort to update the language of the Land Use Code. Vice Mayor Bardarson asked if the language relating to the new Brewpub definition could be expanded to include `brewing is primarily for on- premise consumption, with limited off - premise sales...' Mayor Dunham was concerned with tightening definitions when there hasn't been a lot of discussion. Weston suggested they have a work session for the Council and the Planning & Zoning Commission. Motion to Postpone (Keil /Shafer) Introduction of Ordinance 2011 -004 Postponed to the October 24, 2011 Meeting Motion Passed Unanimous Consent Discussion on City Manager hire. City Clerk Johanna Kinney sought further direction relating to scheduling a date for in- person interviews for the three candidates. The evening of September 8, 2011 worked for all of council. There would be a public reception from 5:00 -7:00 p.m., with the interviews to follow at 7:00 p.m. Dunham asked if the Bear Room at the SeaLife Center would be available for the reception. Kinney asked council to consider how they wanted to perform reference checks on the candidates. Shafer wanted council to perform the reference checks instead of hiring a consultant, but was comfortable using a consultant from AMLJIA. Kinney would present final interview questions at the Special Meeting on August 29, 2011 for council's approval. Council scheduled a work session to discuss extending Seward Ship's DryDock enclosed work area in order to accommodate the US Coast Guard vessels for October 10, 2011 at 5:00 p.m. COUNCIL COMMENTS Shafer was pleased to hear about the reconsideration of the size of parking spaces by the Nomorisemw City of Seward, Alaska City Council Minutes August 22, 2011 Volume 38, Page Planning & Zoning Commission. Keil congratulated Kari Anderson and sent her best wishes. Regarding the Flood Service Area Board, Keil stated no one had applied; there was the potential to make it an at -large seat. Dunham suggested they appoint a council member to attend instead. The Planning & Zoning Commission and Historic Preservation Commission both also had vacancies. Bardarson thanked Kari Anderson, and the Chamber for the Derby. Casagranda thanked the Chantaqua Circus Fair, Gail Bernard and the Seward Arts Council; she wished everyone good luck for school starting tomorrow. Valdatta was concerned about PND as a vendor. Dunham sent his condolences to Karen Swartz's family; she was a council member for eight years; she helped found SAAMS for the Alaska SeaLife Center and helped found the native clinic. He congratulated the Chamber on a well -run Derby. The Obihiro mural project by the Seward Mural Society may be a project that the council would have to get involved in. CITIZENS' COMMENTS - None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None ADJOURNMENT The meeting was adjourned at 9:52 p.m. Johanna Kinney, CMC Willard E. Dunham City Clerk Mayor (City Seal) \L\ City ofSewarcl, Alaska City Council Minutes August 29, 2011 Volume 38, Page CALL TO ORDER The August 29, 2011 special meeting of the Seward City Council was called to order at 7:20 p.m. by Vice Mayor Jean Bardarson. OPENING CEREMONY Officer James Rouleau led the pledge of allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Vanta Shafer Tom Smith Bob Valdatta Ristine Casagranda comprising a quorum of the Council; and Michelle Weston, Assistant City Manager Brenda Ballou, Deputy City Clerk Absent — Mayor Dunham CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Steve Zernia asked the city to weigh in on the Halibut Catch Sharing Plan to express support for the charter businesses as well as Seward's economic welfare; he provided council with some language that he drafted that the city might consider using; his write -up was neutral but expressed concern about the economic impact of the plan. Rhonda Hubbard said she appreciated that the city and chamber did not have a dog in this fight and instead let the business sectors fight it out amongst themselves; she asked council to go on record saying both resources, commercial and charters, were valuable. Elle Zernia said her business was to sell commercially - harvested fish as well as process sport fish coining in from charters, so she saw both sides of the issue. She has had customers tell her they would not travel to Alaska if the Catch Sharing Plan went into action; she was concerned about Alaskan residents as well as visiting tourists curbing their fishing trips. APPROVAL OF AGENDA Motion (Keil /Shafer) Approval of Agenda Motion Passed Unanimous 1� City of Seward, Alaska City Council Minutes August 29, 2011 Volume 38, Page NEW BUSINESS Resolution 2011 -068, Authorizing The City Manager To Enter Into A Contract For $217,292 With R &M Consultants Inc. For Marine Coastal Engineering Services For The Seward Marine Industrial Center And Appropriating Funds. Motion (Keil /Shafer) Approve Resolution 2011 -068 Assistant City Manager Weston gave a brief overview of the two proposals submitted for the conceptual design; she elaborated that a third proposal was returned with a letter stating that the project was non - engineerable; the two bids received were very close from a money standpoint. Shafer asked how deep the basin was from the North dock to Seward Ship's DryDock; Harbormaster Kari Anderson replied that the existing basin at mean lower water was 35 feet. Valdatta asked if R &M Consulting Inc. was the firm who originally installed the Nash Road; Harbormaster Kari Anderson replied that R &M Consulting Inc. had extensive experience with various projects around the city. Anderson said R &M's scope of work would get the harbor to about 35% completion and would uncover any issues that needed to be addressed; the kick -off meeting with R &M would be held next week. Motion Passed Unanimous OTHER NEW BUSINESS Selected City Manager In Person Interview Questions. Discussion on council submitting a comment in opposition or support to the National Marine Fisheries Service on the Halibut Catch Sharing Plan (0648 -BA37) to meet the September 6, 2011 comment deadline. Smith suggested that the city request more time to respond, but felt it was important for the city to formulate a comment. He said in his experience each fishing season was unpredictable, and the more that the experts believe the season might be bad, the more they would want to manage the process. Shafer said she would agree to ask for more time for response, but did not think it was appropriate for the council to take sides. Bardarson agreed that more time should be asked for; she didn't want to see either side of the sector get harmed. Council asked for the letter to request the comment period to be extended to the end of October. 16 City of Seward, Alaska August 29, 2011 City Council Minutes Volume 38, Page Gave clarification on written decision issued by the City Council for the August 3, 2011 NVision /AVTEC Fire Department Appeal Hearing. City Attorney Cheryl Brooking joined the meeting via telephone. Fire Chief David Squires asked for clarification on council's decision. Specifically, he asked if AVTEC obtained a demolition permit, would that negate the requirement for them to install the other safety measures? Bardarson said that was correct; if AVTEC were moving forward to demolish the building then they would not have to install the additional safety measures. Shafer asked for clarification on the timing; Bardarson and Squires responded that AVTEC would have 180 days, once they applied for the demolition permit, to complete the demolition. She continued on to say that in her mind, council had asked AVTEC to install the safety measures as a stop -gap measure until they could move ahead with the demolition. City Attorney Cheryl Brooking clarified the way the original decision was written for the council. The safety measures were requested in order to provide a safe environment for the students and staff from now until the time when AVTEC was ready to demolish that portion of the building. If the building was going to be demolished now, was it still the wishes of the council to have AVTEC install the safety measures even if AVTEC was prepared to move forward with their demolition permit? Squires added that council had required the safety measures be installed within 30 days in order to allow AVTEC time to apply for their demolition permit; if AVTEC were ready to apply for their permit now, would council still require the safety measures? Keil said council's intent was to have AVTEC either install safety measures or knock down the building. Brooking offered to prepare a written clarification for the council to approve. Bardarson asked what the conditions would be on AVTEC, by city code, once they were approved for the demolition permit. Brooking allowed Squires to explain to council what those would include: explanation of how AVTEC would tear the building down; locate all utilities for the building; conduct a hazardous abatement on the building to verify there was no asbestos, etc.; obtain a right -of -way permit; explanation of where the materials will be sent once deconstructed; plan for entrance and egress to the adjacent cafeteria and dormitory buildings during demolition; timeline; fire watch throughout demolition; safety /alert system to protect students and staff. COUNCILS' COMMENTS Smith commented about the Catch Sharing in support of asking for a time extension; he 1� rimiiramorimow City of Seward, Alaska City Council Minutes August 29, 2011 Volume 38, Page suggested having a work session for interested parties to be able to voice all sides of the issue. Valdatta said the quickest and cheapest way to extend the Seward Ship's DryDock rail to accommodate the Coast Guard ships was to lengthen the rail and install a fabric cover. CITIZENS' COMMENTS Rhonda Hubbard warned the council about prolonging the response period for the Catch Sharing Plan. She said the industry needed stability and an extension would create more acrimony between the sectors and be detrimental. There was over 100 years of research on halibut runs and it was more predictable than salmon runs. She encouraged council to express their support and concern, perhaps using the language provide by Steve Zernia. Steve Zernia said his intent for Hubbard introducing the language was specifically not to be divisive between the sectors. His intent was for the council to express their concern that a comprehensive economic study had not been done. Bardarson asked if Zernia thought an extension was appropriate; he replied that only if the council was intending to take action. Bardarson said the extension was intended to allow more time for each sector to provide input as their season waned. Niklas Ranta didn't think a complete and thorough economic analysis was conducted and NOAA should put a little more effort into that research and analysis. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Casagranda said she didn't think council should ask for a time extension, but instead should send a letter of support, perhaps using the language Steve Zernia supplied. Shafer said she didn't think it was council's purview to take sides but would be in favor of writing a letter that was middle of the road; she said the language in the drafted letter provided was neutral and acceptable. Keil was concerned that council was not knowledgeable enough as a body about this subject, and thought it was best for the two sectors to keep communicating. Smith said it would be very impactful for both sectors to come together and provide a joint response. \ City of Seward, Alaska C'it_v Council Minutes August 29, 2011 Volume 38, Page ADJOURNMENT The meeting was adjourned at 8:34 p.m. Brenda Ballou Jean Bardarson Deputy City Clerk Vice Mayor (City Seal) \\ City of Seward, Alaska City Council Minutes September 1, 2011 Volume 38. Page CALL TO ORDER The September 1, 2011 special meeting of the Seward City Council was called to order at 7:05 p.m. by Mayor Willard Dunham. OPENING CEREMONY Council led the pledge of allegiance to the flag. ROLL CALL There were present: Willard Dunham presiding and Marianna Keil Vanta Shafer Tom Smith Bob Valdatta Ristine Casagranda comprising a quorum of the Council; and Kris Erchinger, Finance Director Johanna Kinney, City Clerk Absent — Jean Bardarson CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING - None APPROVAL OF AGENDA Motion (Keil/Shafer) Approval of Agenda Motion Passed Unanimous NEW BUSINESS Resolution 2011 -069, Designating State Of Alaska, Department Of Environmental Conservation (ADEC) Grant Funds For The Project Entitled North Seward Water Storage Tank & Pumping Facility Phase II As The Number One Local State Funding Priority For Fiscal Year 2013. Motion (Keil /Shafer) Approve Resolution 2011 -069 Erchinger stated this was worth the council's time tonight. DEC had a requirement in their scoring system for grants, one being this resolution requesting this project be listed as the number one state priority. This would help the competitiveness of the application and add more points to City ofSevvard, Alaska September 1, 2011 City Council Minutes Volume 38, Page help achieve this $2.5 million dollar grant. With this grant, the city had already received $1.9 million, and this extra portion would bring the city over the amount needed for the entire project. In response to Valdatta, Casey said the city was making progress on the land purchase. Casagranda asked if this would eventually require an expenditure of the city and if the city fell short on funds, perhaps having to use cruise ship funds. Erchinger said this funding would give them project more than enough to finish the project. Keil said this should make this the state's 2013 fiscal priorities, so therefore needed to be on Seward's state priority list for 2012. Erchinger confirmed. Motion Passed Unanimous OTHER NEW BUSINESS Council approved a letter from the City of Seward to the National Marine Fisheries Service Re: the Halibut Catch Sharing Plan (0648-BA37). INFORMATIONAL ITEMS AND REPORTS (No action required) COUNCILS' COMMENTS Valdatta said the city should invite Larry Hill who was putting a microwave tower across the bay to come to a council meeting. Keil asked what the events for the City Manager hire were and for the Department of Transportation House Committee tour next week. Valdatta inquired how things were going on the Harbormaster hire. Casagranda said the open house at the elementary school was great tonight. Dunham said September 11, 2011 was the 10 anniversary of 9/11 and was also Grandparents' Day. CITIZENS' COMMENTS - None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None cD■i City of Seward, Alaska City Council Minutes September 1, 2011 Volume 38, Page ADJOURNMENT The meeting was adjourned at 7:16 p.m. Johanna Kinney Willard Dunham City Clerk CMC Mayor (City Seal) Agenda Statement Meeting Date: September 12, 2011 4 of sett, p o �� From: Johanna Kinney, City Clerk 'i tasK P Agenda Item: Appointment of Election Bo BACKGROUND & JUSTIFICATION: According to Seward City Code 04.05.015 (a), City election boards are selected and appointed by the Kenai Peninsula Borough Assembly and each member shall be a qualified voter and resident within the precinct for which they are appointed. The members listed below were approved by the Borough Assembly. The qualified city residents that will constitute the election board and committed to work on October 4, 2011 are: Betty Casey - Skinner, Rose MacSwain, Mary Williamson, James Herbert, and Mark Kansteiner. RECOMMENDATION: The City Council approves Betty Casey - Skinner, Rose MacSwain, Mary Williamson, James Herbert, and Mark Kansteiner as the Election Board for the October 4, 2011 regular municipal election. 0. City of Seward, Alaska , sF City of Seward 1963 1965 2005 °,<.•<\ 9 P.O. Box 167 Seward, Alaska 99664-0167 All- America City l iii - Main Office (907) 224 -4050 Facsimile (907) 224 -4038 August 24, 2011 R 0 Fairbanks North Star Borough P.O. box 71267 Fairbanks, Alaska 99701 ATT: Mayor Luke T. Hopkins Dear Mayor Hopkins, Thank you for taking an interest in the U.S. Army Corps of Engineers funding initiative we are attempting to get established for the Pacific Ocean Division. This idea began to take hold after our meetings in Washington, D.C. last spring when we saw the competition for funds in future budgets. We have had, and still have, several key projects in Seward that are heavily dependent on the U.S. Army Corps of Engineers' cooperation, funding, and permitting. With the winds of change that are blowing in the halls of Congress leadership, how Alaska will be treated is of grave concern. This last May, Seward was fortunate to host the Pacific Ocean Division Annual Conference. We learned a lot and had an opportunity to suggest the special funding block for the Division, such as was outlined in the packet I gave you on our trip to Sitka. Although the senior leaders of the Corps could not come out in direct support of such an under taking, they did express encouragement that such a change might be appropriate. Alaska will need some edge for federal funding to compete with the huge size of lower 48 ports. A funding mechanism such as we suggest could provide that edge. I would like very much to have this initiative as a major topic at the Fall AML session. All communities in Alaska are touched by Army Corps of Engineers permitting, funding, and support of projects in one way or another. We have spent much time on this endeavor and would be very pleased if you and other mayors in the northern area would be with us in the future. I have also met with the Kenai Peninsula Mayors and they have been pursuing support as well. If there is more information you need, please feel free to call me or contact our City Manager Phillip Oates at (907) 224 -4012 or e -mail poates@cityofseward.net Thank you again for your interest Sincerely, ,r ( ` Willard E. D am, Mayor -- City of Seward ;y n 4 1 Z S hex E g'rK'`. Main Office (90 224-4050 r Facsimile (907)1244038 . R. 1' August 24, 201 1 National Association of Counties ATTN: Ryan R. Yates 25 Massachusetts Avenue, NVV Suite 500 Washington DC 20001 RE: Marine Funding Dear Mr. Yates: enjoyed talking with you at the Sitka Mayors' meeting recently. l was -, ovisirlu forward to foilcw rig up with you about Seward's project with th8 ,,� �� �- U.S. Army Corps of E ngineers and a possible fur schedule for it b� �� h r s � ding ut < ad to make a unexpected trip home a day early for the death of a close family friend. As you know, Alaska's building future in `r marine �� the marine arena is tightly entwined with t Engineers but we are ,n� � � s. � t' � she Corps of orried how we may fair when competing against the large population ports of the lower 48 states for budget items. So thank you for taking an interest in the funding initiative we are attempting to get established for the Pacific Ocean Division. This idea began to take hold after our meetings in Washington, DC fast s budgets. We have had, J spring when we save the competition for funds in future bud g and still have, several key projects in key 1 Seward that are heavily dependent on the U.S. Army Corps of Engineers' cooperation, funding and permitting. With the winds of change that are blowing in the hails of Congress leadership, how Alaska will be treated is of grave concern. This past May, Seward was fot 4unate to host the Pacific Ocean Division Annual Conference. We learned a lot and had an opportunity to suggest the special funding block for the Division such as is outlined in the information and correspondence ( have e of the Corps could not come out � nciosed for you. Although the senior leaders direct suppot t of such an undertaking, they did express encouragement that such a change might be appropriate. a u�;di g . e laska will need some edge for Federal t0 om ep� te wlth the huge size of other ports populations and 0 state. A funding mechanism such as we s� c , , Aerations; compared to our n suggest o rid provide that edge for Hawaii, ail Alaska and �i UarTl . have been working on this effort for some time and hope to have it as a topic on the agenda for the fail AML conference in Fairbanks. if vou have some com.ments or would like to work with us would be very happv to have vnur !ripi if there ,s more information you woLkl need, please feel free to contact our City Manager, Phillip Oates, at (907)- 224-4047 or e-mail ooaaS:ohvcfSeward, or mysgaf, Thank you again for vai nte-ffest. Sincerely, Willard E. ninnam. Mayor City of ci-rawRrci. Alaska. 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