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HomeMy WebLinkAbout05122014 City Council Minutes City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 322 CALL TO ORDER The May 12, 2014 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Lieutenant Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Ristine Casagranda Christy Terry Marianna Keil Dale Butts comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Eric Wohlforth, City Attorney ,,. Absent—Darling, Squires CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Terry pulled the proclamation for Seward Elementary School teacher Terri McKnight,a BP Teacher of Excellence recipient for 2014 from the consent agenda. Terry pulled Resolution 2014-046 from the consent agenda. Butts pulled the introduction of Ordinance 2014-004 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinance 2014-003, Amending Title 14 Of The City's Code Of Ordinances To Provide For Interconnection Of Small Renewable Energy Sources To The City's Electrical Distribution System. (This ordinance was introduced and set for public hearing and enactment at the May 27, 2014 meeting) City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 323 Resolution 2014-045,Authorizing A Donation Of$2,000 To The Resurrection Bay Historical Society To Host The Museums Alaska / Alaska Historical Society Joint Annual Conference October 1-4,2014 To Be Held In Seward, Alaska. Approval of the March 24, 2014 City Council Regular Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Proclamation for Retirement of AVTEC Director Fred Esposito. Harbor Opening Weekend & Blessing of the Fleet Proclamation. Borough Assembly Report, Sue McClure stated the assembly was very pleased with the reception given by Seward when they were in town. They met on May 6, 2014 and the proposed budget was introduced.The finalization of the budget was scheduled for June 3,2014.McClure was asking for input on the mayor's proposal to increase the Seward Bear Creek Flood Service Area property tax by .25 mills. A big topic each year was the money the assembly gave to "non- departmentals"like the Central Area Rural Transit System(CARTS),the Kenai Peninsula Economic Development District,and the Kenai Peninsula Tourism and Marketing Council.The same amount given last year was proposed this year. An ordinance was coming forward to receive$150,000 from the State of Alaska for flood recovery costs. City Manager's Report, City Manager Jim Hunt stated the following purchase orders between $10,000 and $50,000 were approved by the City Manager since the last council meeting: $20,000 to M.L. Foster for providing permit support and assistance with sludge removal and maintenance planning at SMIC, and $11,225 to River& Sea Marine for a 19' aluminum boat with motor and trailer for sampling at the SMIC and Lowell Point Lagoons.Administration continued to meet with the Army Corps of Engineers and the state regarding Lowell Canyon and the tunnel. In Public Works, residents of Dairy Hill were hand delivered a timeline and what to expect with the upcoming drainage project. The anticipated completion date was May 28, 2014. If the weather held, street painting should be done soon. Staff attended a conference call with several members of State of Alaska Department of Environmental Conservation(DEC) and Loren Leman regarding the maintenance of both sewage lagoons and sludge removal. The city was working with M.L. Foster to develop a disposal plan that would be acceptable to the Kenai Peninsula Borough. Once the city was able to enter into a Memorandum of Agreement with the borough, DEC would likely grant the city $1.2 million loan for sludge removal and refurbishment of the lagoon. It appeared that between city monies,DEC Loans,appropriation of the monies from the governor and a contribution from the State Department of Corrections, the city would have up to $3.4 million for both lagoon projects. The sidewalk repairs were set to begin on May 13, 2014 and expected to be completed by May 30, 2014. In Parks and Recreation, the Pink Cheeks Triathlon had an excellent turnout and staff was preparing for more upcoming races. The Teen and Youth Center (TYC) and the Teen Rec Room were preparing and advertising for upcoming summer camps. In Maintenance&Campgrounds, all City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 324 water was now turned on in beachfront campground areas and crews continued preparing campgrounds and parks for the summer season. On May 1, 2014,parking opened for business with new permits. In the Harbor,a pilot program had been initiated to establish a new and more flexible way to turn on and off electricity. The crew was trying to complete repairs to a troublesome hoist on the 250-ton travelift. So far, it had not affected the harbor's safety record, but they were experiencing increasing maintenance issues with the old lift. The harbor was soliciting engineering firms to design the Northeast Fish Cleaning Station. The following scoring criteria were reported to the council: Statement of Qualifications 30 Points Organizational Structure 15 Points References 15 Points Clarity of Proposal 10 Points Cost 30 Points Total 100 Points In response to Butts, Hunt said the report on the damage of the Lowell Canyon Tunnel was still coming. The meeting with the Corps of Engineers was more of an open discussion on alternatives to the tunnel, and more of a platform to understand how better the Corps worked and helped clear lines of communication. The state would like to be actively involved. The city did not currently have a permit in place to operate a dam and Hunt was hesitant to apply for a permit to operate a dam without council approval. In response to Casagranda, Assistant City Manager Ron Long stated staff hoped to soon score the Project Manager position, post in-house for a brief period, and then advertise publicly. City Attorney's Report, Eric Wohlforth stated his firm worked on general matters including several proposed zoning changes, public record issues, employment questions, the lease assignment for Seward Ship's Drydock (SSDD) to Vigor Alaska, advice on D float repairs, and revisions to the electric utility and the corresponding interconnect ordinance. Other Reports, Announcements and Presentations -None PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2014-044,Authorizing The Assignment Of The Ground Lease With Seward Ship's Drydock,Inc. For The Real Property Described As Lots 1-A And 3, Block 7, Fourth Of July Creek Subdivision Seward Marine Industrial Center, Seward Ship's Drydock Replat, According To Plat 2002-22, Seward Recording District, Third Judicial District, State Of Alaska, To Vigor Alaska - Seward, LLC, Subject To Assignor Providing The City Proof Of Environmental Liability Insurance For Four (4) Years From The Date Of Assignment,And Authorizing The City Manager To Enter Into Amendment No 5 To The Assigned Ground ,,,. Lease. City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 325 City Clerk Johanna Kinney noted for the record the complete attachments for the lease were too big to incorporate into their meeting packet.She noted these full attachments were present for the meeting tonight and had been available for review in the same fashion as the lease and resolution documents. Motion (Terry/Keil) Approve Resolution 2014-044 Long stated Jim Pruitt of Seward Ship's Drydock(SSDD)and Adam Beck of Vigor Alaska (Vigor)were in the audience tonight. The relevant portions of the environmental assessment were included in the agenda packet. One of the amendments to the lease extended the term through June 30, 2040. Seward Ship's Drydock sold their vessel repair and construction business to Vigor and wished to reassign the city lease as well. Vigor agreed to accept the terms as amended before them tonight. Another amendment proposed tonight was to have the city indemnify Vigor for a period of four years for potential cleanup liability should a contaminant was found during that period and be determined to have existed prior to this lease assignment. For that same time, administration recommended that as a condition of lease assignment, Seward Ship's Drydock provide the city with proof of environmental liability insurance. Long emphasized this was a collaborative group effort between the city, SSDD,and Vigor. Vigor did a two phase environmental assessment that they city felt appropriate to refer to and incorporate into the lease conditions. Phase I was a records review of the history of the site.Phase II was the actual onsite testing involving drilling, testing, lab samples, etc. This resolution would be effective 30 days after passage and approval. Staff intended to come back to council to approve the reassignment of the Maintenance and Operating Agreement with amendments. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Jim Pruitt, President of Seward Ship's Drydock, said this process started back in January this year.Vigor was a candidate that stood out to purchase the business. They had a great reputation in the northwest and they owned many shipyards, including one in Ketchikan. They had a good reputation and the ability to take this facility to the next phase. He asked for their support on this resolution. Pruitt also suggested to the council when looking at the Maintenance and Operating Agreement to consider mirroring the lease terms to have the agreement and the lease to run for concurrent terms. He'd be happy to answer any questions of the council. Adam Beck, Vice President of Vigor and President of Vigor Alaska, asked for council support on this resolution and shared his vision for the shipyard. They had 1,600 employees in Washington, Oregon, and Alaska. Strategic acquisitions were part of their growth strategy to compete with shipyards throughout the country.Vigor had a large fleet and could offer stable career opportunities.They had goals to work with the Bering Sea fishing fleet and the oil and gas sector.He stated the history and process when they acquired the Ketchikan shipyard and the extreme environmental concerns expressed by the community. They increased growth, annual wages and benefits,and kept workers as residents.Beck stated Vigor considered themselves as stewards of the pristine coastline and worked to protect their environmental integrity.Their goals were to protect the environment while increasing efficiency. City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 326 In response to Casagranda, Long said cost of the insurance was divided between the three parties and noted after four years, all liability was assumed by Vigor. Keil commented she toured Vigor's facility in Seattle and she was very impressed by the environmentally sound facility and thought they were going to have another good partner in the shipyard business. Motion Passed Unanimous UNFINISHED BUSINESS -None NEW BUSINESS Ordinances for Introduction Ordinance 2014-004, Amending Portions Of Seward City Code §15.10.140.B Specific Definitions, §15.10.225 Land Uses Allowed And §15.10.225 Land Uses Allowed Table; To Allow Mobile Vendors And Roving Vendors To Operate On City Owned Property (As Designated) And Within Public Rights Of Way. Motion (Terry/Keil) Introduce Ordinance 2014-004 Long stated in February, 2014 the Planning and Zoning Commission had been tasked by council with reviewing the allowance of mobile and roving vending on city property. The commission passed a resolution recommending council enact this ordinance in April, 2014. They were working hard to get this approved and policies in place in time for the summer season. Motion Passed Unanimous Resolutions Resolution 2014-046,Approving Teen And Youth Center Day Camp Fees. Motion (Keil/Terry) Approve Resolution 2014-046 Parks and Recreation Director Karin Sturdy stated department's goal was to provide recreation to kids to take up time otherwise spent at home without supervision.In the recent past,the department thought it would be appropriate to increase the fees.The increase was approved and a fee schedule was implemented. The Teen and Youth Center's (TYC) attendance dropped shortly after the increase. Staff wished to revert back to the previous fees when attendance was healthier. Sturdy handed out flyers on day camps and adventure camps, and noted adventure camp rates were higher because those involved taking the youth on more intensive adventures. She appreciated council's support on this resolution. .., Casagranda asked for a ruling on a potential conflict of interest as she was looking to put her children in this facility.The mayor ruled no conflict existed as many of them paid for facilities like this. There was no objection from council. City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 327 Terry said it was hard for her to look at these rates because council didn't have the complete costs before them. Any business model would need to look at the figures. Daycares were full right now,perhaps there was a point that they were supporting private businesses and something like the TYC should be contracted out. She was concerned why they had to go back to the figures from 2011. The city was subsidizing these programs,which was fine,but the current rate already was subsidized. She didn't feel comfortable not knowing what the actual costs were. In response to Casagranda,Sturdy stated the resolution addressed the Tier Three rates,which proposed a half increase and no change in day camp fees. Casagranda agreed with Terry that it was hard to assess what the revenues would be if council didn't have the costs before them. She didn't think there was enough information to make an informed decision. She wanted to see numbers; Terry said it might be good to see other organizations' costs for comparison as well. Motion (Terry/Casagranda) Postpone Resolution 2014-046 to the May 27, 2014 meeting. Motion to Postpone Passed Unanimous Other New Business Schedule a Work Session and council meeting presentation to review the results of the 2013 Audit. Council scheduled this work session for June 23,2014 at 5:30 p.m. Direct a letter to be sent from the Mayor, thanking Legislators for their support of Seward during the Alaska State Legislative Session. Council gave direction for a letter to be created and sent. Schedule a Work Session on alternative energy. Council directed this agenda item be put on the next agenda to schedule a work session. Discussion of draft policies and procedures for mobile and roving vendors. After discussion, council directed the policy to come before them for approval with the following revisions: all mobile vending locations to be allowed from May through October, except for the two locations at SMIC, which shall be year round; only one location allowed per vendor; implement the fee structure as follows: $50 filing fee and a $250 permit fee; and vendors are allowed to be placed on more than one location waitlist and can remain on those lists even if permitted to operate on a space. INFORMATIONAL ITEMS AND REPORTS May is Poppy Month from the American Legion Auxiliary. h Proclamation. National Historic Preservation Mon t P City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 328 Letter ofcongratulations to Christi Bell on her recent promotion to Executive Director ofthe University of Alaska Anchorage Business Enterprise Institute. COUNCIL COMMENTS Keil thanked all who participated in the Super Saturday Clean Up. She thanked administration, Seward Ship's Drydock,and Vigor for their due diligence and their extra hours and hard work on the lease reassignment. Terry welcomed Vigor and thanked Seward Ship's Drydock. She announced the Seward Bear Creek Flood Service Area Board had one seat open and stressed to Seward how much they were affected by the decisions made by that board. All seats were at large, and council needed to make sure Seward's citizens were on board. Terry asked the public to be safe as kids were now out of school for the summer. She noted it would be great to get input from on the child care businesses on the rate proposal currently before council. Butts thanked Seward Ship's Drydock and Vigor and hoped they were looking into a long and good relationship.May 22,2014 was the annual Combat Fishing Tournament.Three busloads of veterans came down to Seward last year to go fishing,and it was always a great event. Butts thanked McClure for her report tonight. Casagranda thanked everyone who worked at TYC,she had heard their staff was important. She gave congratulations to Doreen Valadez, who was recently promoted as the new Lieutenant. Bardarson thanked administration,Planning and Zoning Commission for all their work with the roving and mobile vendors to put something in place in time for the summer season. She wished the Finance Department luck as they were getting trained in their new accounting software. Hunt thanked the council, citizens, and businesses for their support on the transition of the shipyard acquisition and lease reassignment. He agreed with Butts this would open up a new era in the shipyard business. Long thanked everyone participating in the Seward Ship's / Vigor lease reassignment process.It was addressed at the Bering Sea Fisheries Conference the need to rebuild their aging fleet. There were big issues for those operators in obtaining access to capital. Staff worked hard to free up Alaska Industrial Development and Export Authority (AIDEA) funding to bring some of this business to Alaska. Long elaborated on a recent teleconference with the U.S. Army Corps of Engineers on the SMIC permitting process. There was concern on the national fisheries level on the salmon that may be affected by the proposed breakwater. Staff was working with experts to get some more assistance on that and work on alternatives, but noted it has not affected their construction timeline. Bardarson noted the Alaska Municipal League Summer Legislative Meeting was August 13- 15, 2014 in Nome this year and she planned to attend this event along with the Assistant City Manager. City of Seward, Alaska City Council Minutes May 12, 2014 Volume 39, Page 329 CITIZEN COMMENTS Sue McClure,Vice President of the Resurrection Bay Historical Society,thanked the council egi for their donation for the upcoming Museums Alaska/Alaska Historical Society joint conference to be hosted in Seward. They had many committees working and planning the event and noted it would bring at least 200 people to Seward. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Butts reminded the public there were two more seats available on the Planning and Zoning Commission. ADJOURNMENT The meeting was adjourned at 9:10 p.m. (4 u � o anna Kinney, CMC an Bardarson • y Clerk Mayor i amp (City Seal) , erg SEAL ) '. '• • —°" 1 = •.:$>.4% :.,,•° 4-,:.• **.:).�O F�P%••• ail