HomeMy WebLinkAbout05262015 City Council Minutes City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 537
CALL TO ORDER
The May 26, 2015 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Police Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and Iris Darling
Christy Terry David Squires
Dale Butts
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
Absent—Marianna Keil, Ristine Casagranda
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Tim McDonald said there were six swan babies in the water on Nash Road. He was
interested to know how the sludge dredging contract was going at the sewage lagoon and how much
had been dredged.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Terry/Darling) Approval of Agenda and Consent Agenda
Butts placed Resolution 2015-051 on the consent agenda with no objection from council.
Bardarson added scheduling a work session to discuss questions for the Seward Community Health
Center Capital Grant/Due Diligence Process under Other New Business Items.
Motion Passed Unanimous
111 The clerk read the following approved consent agenda items:
Schedule a work session to review the 2014 audit results for 5:30 p.m. on Monday, June 22,
2015.
City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 538
Approve the Public Convenience/Eating Place Liquor License application for The Sea Bean,
LLC.
Resolution 2015-051, Accepting A Grant In The Amount Of $2,923.20 From The Alaska
Highway Safety Office For The DUI High Visibility Enforcement Campaign During The 2015
Enforcement Periods Of Independence Day(July 3-5,2015)And Labor Day(August 19-Sept 7,
2015) And Appropriating Funds.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards
Recognition for Lila Hurst for her volunteer work at the Seward Animal Control Shelter.
Chamber of Commerce Report.Cindy Clock said the chamber building had some exterior
remodeling done and she was happy about how good it looked. Melody Hatch was a new part time
addition for the chamber.Approximately 90 people attended the recent public free customer service
seminar hosted by the chamber. Foot traffic through the visitor's center was picking up and their
membership drive would begin next month.Currently,there were 308 chamber members;the largest
group of members was the small business owner.Clock emphasized the rewards in belonging to the
Chamber of Commerce. She thanked Terry for letting the chamber know that the Norwegian Cruise
Line sales team was visiting Seward; the chamber was able to find them and present them with
Seward gift bags. Their first ship was June 1, 2015, which was also the start of the halibut
tournament.
City Manager's Report.Jim Hunt said there were no purchases since last meeting.Benches
for the bus stops around town had been ordered and would be here in about two weeks.Hunt asked
the citizens to please sweep their sidewalks.
The City Manager gave a brief update on the Lowell Point Sewage Lagoon dredging project
and explained the company added 40 bio domes over the aerators at the bottom of the lagoon. He
reported the contractor was running under budget and was on schedule.
In response to Squires,Hunt said the project had been well documented with photos,which
would be helpful in future maintenance.
Butts asked about the recent clean-up at the Seward Marine Industrial Center(SMIC)Sewage
Lagoon and if staff found out what exactly happened with the situation that caused the beach to be
severely littered. Public Works Director W.C.Casey stated the contractor was working round the
clock at SMIC with city staff monitoring the area about 8-10 hours a day. In the final stages of
pumping, the matter from the sewage lagoon had to be hauled and not drained down by water. In
hauling throughout the night,and in the process of cleaning the lagoon out and sucking up the debris
as planned,something got clogged or ripped and various types of condiment packages went through
the discharge.As soon as that was realized the project was halted and the Public Works staff started
hauling and cleaning immediately. Casey stated it was clean over there now, his crew walked the
City of Seward,Alaska City Council Minutes
May 26,2015 Volume 39, Page 539
entire area and found it to be clear of all debris.He called the Alaska Department of Environmental
Conservation(ADEC),who did an onsite visit and thought the city did a good job responding to the
situation. Casey added the prison assisted with staff and inmates to help clean up around fenced
areas.
In response to Terry, Casey stated there was not a final report prepared by ADEC at this
point,but he could distribute to council what the city filed to ADEC. In response to Squires,Casey
confirmed staff went into Spring Creek to make sure there was not debris in the creek.
In response to Bardarson,Hunt said the notice to bid for the SMIC Breakwater Construction
project went public today.In regards to the state paving project in the city,Casey stated staff needed
to get the rights of way certified,so either a Request For Proposals or solicitation of quotes would be
forthcoming.That would be the last requirement of the city before the state began the project. When
Casey submitted the rights of way certification to the state,he would ask for a timeline schedule for
this project.
Hunt stated the city would be enforcing the nuisance and health codes,and abatement letters
would be going out to have people clear and clean their lots.He felt good progress had already been
made with this approach.
Butts asked if they had come up with ideas on making this council more paperless. City
Clerk Johanna Kinney stated she was prepared to bring council a cost estimate of using electronic
tablets in place of paper agenda packets during this year's budget session.
Other Reports, Announcements and Presentations —None
PUBLIC HEARINGS
Resolutions Requiring A Public Hearing
Resolution 2015-045,Authorizing The City Manager To Enter Into A Lease Amendment
With Alaska Logistics LLC For Lot 2,Block 3 Fourth Of July Creek Subdivision,Seward
Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97-27 Seward Recording
District,Third Judicial District, State Of Alaska.
Motion (Terry/Darling) Approve Resolution 2015-045
Hunt stated he recommended council pull this from the agenda,because this amendment was
lacking some development provisions.
Terry was confused because the lessee had signed the agreement and questioned how the city
would be able to renegotiate. She felt it was regressive bargaining and would like the attorney to
weigh in on that aspect. Terry said she would be willing to postpone this, if needed.
City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 540
Motion to Postpone (Darling/Squires) Postpone Resolution 2015-045 to the June
22, 2015 meeting, with a new public
hearing notice.
Council recessed at 7:40 p.m.
Council resumed at 7:45 p.m.
Addressing the timeliness of this lease amendment,Deputy/Acting Harbormaster Norm
Regis said delaying this resolution shouldn't affect things with Alaska Logistics because their lease
expired in 2014 and they were currently paying month to month.
To allow for more discussion, the motion to postpone was withdrawn with no objection from council.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Tim McDonald said there wasn't much information given to the council to make this
decision. This appeared to be a 99 year lease. McDonald wasn't against a lease that long, but the
company didn't even have a building at this point.Unless the city had some protections in the lease,
this didn't seem warranted. He said the council needed to ask themselves what guarantees did the
city have. Alaska Logistics didn't have a proven track record with the city,as they had only been in
Seward for five years.
No one else appeared to address the Council and the public hearing was closed.
Motion to Postpone(Darling/Squires) Postpone Resolution 2015-045 to the June
22, 2015 meeting, with a new public
hearing notice.
Terry said she would like to see on all legislation where the city was disposing or leasing land
that the Municipal Lands Management Plan was being reviewed in the consistency checklist.
Motion to Postpone Passed Unanimous
Resolution 2015-046,Authorizing The City Manager To Enter Into An Agreement With The
Kenai Peninsula Housing Initiative (KPHI), Donating Approximately 1.7 Acres Of The
Southern Portion Of Lot 11A, Fort Raymond Subdivision Replat Number 1, For The Sole
Purpose Of Developing A Non-Income Based Independent Senior Housing Facility Upon
Condition Of KPHI Being Awarded All Other Necessary Funding For The Project
Development And Completion.
Motion (Squires/Terry) Approve Resolution 2015-046
Hunt said the council held two previous public hearings on this matter, initially with a
different location proposed at Williams Park. After much input, another potential property was
City of Seward,Alaska City Council Minutes
May 26,2015 Volume 39, Page 541
identified in the Fort Raymond Subdivision as a suitable location. Staff was now asking council to
consider donating this property.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened
John French was attending tonight's meeting on behalf of the Historic Preservation
Commission. He was there to answer any questions that may come up. The Commission reviewed
this per the request of the City Council. The commission supported this resolution. They did
recommend additional conditions,however. Because Seward was established as a Certified Local
Government(CLG),the commission felt it was a responsibility of the city to survey those properties
with respect to historical importance. Those properties need not be large physical structures; they
could be archeological as well.The commission recommended a historic and archaeological survey
be done prior to transfer of property. It would be valuable for the city to find a way to do an
archaeological survey of the vacant parts of the Fort Raymond track. He reminded council not all
history was easily identifiable.
Steven Rouse,Executive Director of the Kenai Peninsula Housing Initiative(KPHI),offered
two clarifications on this project.The group anticipated two six-plex buildings total for this project,
broken into two phases.The group would like to utilize the entire 1.7 acres for housing with required
buffers surrounding. KPHI would have to conduct a 13 point environmental assessment of the
property; one of those points would have to be a letter from the State Historic Preservation Office
(SHPO)determining if there was any historic impact. Rouse reminded council the deadline for site
control and grant possibilities was rapidly nearing and delaying this could jeopardize the project for
this year.
No one else appeared to address the Council and the public hearing was closed.
By unanimous consent,council suspended the rules to allow John French and Steven Rouse to
answer questions of the council.
In response to Squires, French said the Seward Historic Preservation Commission(SHPC)
was not an expert commission, and that the expertise lied in the State Historic Preservation Office.
Because of this,the SPHC did not do a thorough investigation of the area. French stated the SHPC
was primarily concerned with any World War II history that could be underground. He was more
confident after Rouse's comments about KPHI's required environmental assessment which included
getting input from SHPO.
Rouse said KPHI wouldn't be able to proceed with development until they got approval from
13 agencies, one being SHPO, stating this land was of no historical significance, or if it was of
historical significance, how they should proceed ahead.
ll Motion Passed Unanimous
UNFINISHED BUSINESS
City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 542
Items postponed from Previous Agenda.
Discussion on State of Alaska's Department of Transportation Building in Seward.(added
by Bardarson,postponed from March 23, 2015)
Hunt stated this had been a long path and the State Department of Transportation(DOT)
offices on B Street had been there a long time.He recently was able to communicate with the state
last week and expressed the need for additional land in Seward.Hunt was going to encourage the
state to engage in a dialogue to consider options for obtaining or switching this land. He would
keep the council updated as there was more information.
NEW BUSINESS
Resolution 2015-047,Affirming That The Council Must Authorize The Seward Community
Health Center's 2015 US Department Of Health And Human Services'Health Infrastructure
Improvement Program Grant Application.
Motion (Terry/Squires) Approve Resolution 2015-047
Hunt said this was a reiteration of Resolution 2015-029 to apply for the aforementioned
grant.What was not mentioned in the first resolution,and what was promised by administration,was
confirmation that the approval of the project may be rescinded prior to the submittal of the
application. The council was the funding power as the legislative body.
Squires wanted to know if they were going to have any work sessions with the Seward
Community Health Center(SCHC)and how the city was going to fund such a project as this grant
was tied to. Hunt said the city administration and council had some important decisions to make if
they proceeded ahead with this grant project, including funding.
Motion to Amend (Bardarson/Terry) Amend Resolution 2015-047, by amending
the last Whereas as follows: "WHEREAS,
such approval may be rescinded prior to
September 1.
2015."
Motion to Amend Passed Unanimous
Motion to Amend (Bardarson/Terry) Amend Resolution 2015-047, by amending
Section 1 as follows: "The Seward City
Council directs the City Manager to bring
forward a resolution by August 10,2015 to
formally authorize the Seward Community
Health Center's application
process with the US Department of Health111
and Human Services' Health
City of Seward,Alaska City Council Minutes
May 26,2015 Volume 39, Page 543
Infrastructure Improvement Program
grant application."
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Resolution 2015-048, Authorizing The City Manager To Amend The Contract With CRW
Engineering Group, LLC And Increasing The Contract In The Amount Not To Exceed
$178,830 To Provide Construction Support Services For The North Seward Water Storage
Tank And Pumping Facility Project.
Motion (Terry/Squires) Approve Resolution 2015-048
Casey said the North Seward Water Storage Tank and Pumping Facility had been a long
project. When the engineering contract was let, it was originally considered to include project
management,but after review it was ultimately decided to address it at a later time.The new Project
Manager had become very involved in this and was doing a great job. Casey stated he needed a
registered engineer for this project. He did not anticipate the cost of this service to actually come to
the full amount of the contract;it was an estimate he received from CRW.It was imperative to have
them on this project, he felt. Fortunately,this was negotiated down to the price before the council,
and he emphasized again he didn't expect to spend the entire amount.
Squires asked if a demolition of the old tank would be performed and who would be involved
in that.Casey said it would involve the city very little and confirmed the city would be taking out and
rerouting piping.
In response to Bardarson, Casey noted it was originally stated it would be a 600,000 gallon
water tank going in, and in the later letter from CRW it was noted as a 500,000 gallon tank. Casey
said this was a housekeeping measure,and was actually fairly minor in nature since the tank does not
carry at full capacity. He noted this new tank would double the current storage. In response to
Darling, Casey said the city would be billed for time and materials.
Bardarson asked if they initially hired a company to do the engineering and do the bidding.
Casey stated in 2001 the idea began with the study of the water and sewer system analysis,
identifying capital future needs and system issues the city had.In 2007,the city entered into the first
contract with CRW for engineering services. Casey stated the original contract was for design
engineering services, not construction support services. Bardarson asked if spreadsheet of project
costs could be provided to council on this.
In response to Terry,Casey said December 31,2015 was the deadline for completion of this
project. He anticipated to be within the budget and was working with finance to get an accurate
accounting of the overall project costs.
Motion Passed Unanimous
City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 544
Resolution 2015-049, Authorizing The City Manager To Enter Into A Professional Services
Agreement With M.L.Foster& Associates To Provide Additional Engineering Services And
Construction Support For An Amount Not To Exceed $58,000.
Motion (Terry/Squires) Approve Resolution 2015-049
Casey some of this work had already been performed. With the immediate need to move
forward on completion of the Sewage Lagoon Dredging and Disposal Project,and to satisfy Alaska
Department of Environmental Conservation(ADEC),he anticipated this engineering service would
fall under $50,000. Some elements in the dredging project had changed, including allowing the
addition of bio domes and other advantageous features,so the engineering services cost increased as
well. Casey stated he needed to pay M.L. Foster for services already performed,and services yet to
be performed.
In response to Terry, Casey said this contract amount would be in addition to any previous
purchase orders. On the city's behalf,M.L. Foster was sending the state weekly reports for several
months now.Casey estimated the city has spent approximately$98,000 on the two lagoons so far for
engineering services.
Darling would like to see these engineering firms go out to bid. She understood they likely
couldn't do that in this situation,but other companies should be allowed to compete.The city should
be totally objective. This firm had been in business with the city for some time now, and other
companies should be given the opportunity to bid on these services.
Squires said this didn't include the breakdown in costs and wanted it to have more detail.He
didn't doubt it was justified but would like to see why the increase in costs. Squires wanted
administration to look at how they handled their contracts.Council should get more input early on in
the process so they were prepared by the time it came to them for approval.He felt they needed to do
better.
Council requested the expenses reported out and the letters updating ADEC.Administration
said they would get that to council and Casey noted the project was under budget.
Darling said when these little costs keep coming back to the council;they are questioned as to
why the additional costs.
Motion Passed Unanimous
Resolution 2015-050,Authorizing The City Manager To Enter Into A Contract,With Jordan
Meter Services, For The Reading Of Electrical Meters Within The City Of Seward Electric
Service Area For An Amount Not To Exceed $60,000 And Appropriating Funds.
Motion (Terry/Squires) Approve Resolution 2015-050
Hunt said the original contract expired in June 2012,after a three year extension option.That
three year option ended and a new contract was needed.
City of Seward, Alaska City Council Minutes
May 26, 2015 Volume 39, Page 545
Motion to Amend (Darling/Squires) Amend Resolution 2015-050 to change any
references from a three year contract to a
one year contract.
Darling said this might be a good idea because new technology like smart meters and auto
meter reading systems were starting to become more popular.
In response to questions of the council, Electric Utility Manager John Foutz clarified that
the meter readers were paid per meter.
In response to Butts, the city would change to smart metering, not the customer. He'd
researched this new type of metering and it was very costly to pursue, but he was continuing his
research. Hunt added the return on the investment would take a long time to pay off this cost and
start saving funds.
City Clerk Johanna Kinney asked administration if the city went out for proposals with a
three year contract as part of the scope of the contract. Administration confirmed that was the case.
Kinney stated if council wanted a one year contract, it would be safer to fail this resolution and go
back out for a new Request For Proposal.
With no objection from council, Darling and Squires withdrew their motion to amend.
Motion Passed Unanimous
Other New Business Items
Vote and appoint two applicants to the Historic Preservation Commission for a term toeExpire
May 2018. Applicants are Linda Lasota, Sandie Roach', and Frederick Woelkers.
Receiving five votes each, Lasota and Woelkers were appointed to the Historic Preservation
Commission.
Schedule a work session to discuss questions for the Seward Community Health Center
Capital Grant Project/Due Diligence Questions. Council scheduled this work session for
Thursday,June 18, 2015 at 5:30 p.m.
INFORMATIONAL ITEMS AND REPORTS
March 2015 Financial Reports for Providence Seward Medical and Care Center.
COUNCIL COMMENTS
Terry was glad they were having a work session on land disposal policies and procedures.
She wasn't sure they followed the same process anymore. It addressed a good timeline that if
City of Seward, Alaska City Council Minutes
May 26, 2015 Volume 39,Page 546
followed,maybe wouldn't have had the issues they had tonight with reviewing the lease amendment
for Alaska Logistics.
Butts congratulated Lila Hurst for her work in the Seward Animal Shelter.He congratulated
the new graduates of 2015. Butts noted there was a new young moose in the city limits and asked
everyone to please watch out for them as moms were protective. He wished his wife a Happy
Birthday today.
Squires attended the Memorial Day celebrations at the American Legion and it was very
moving. It had great community participation and he said it was always nice to remember our
forefathers. He was disappointed the kids fishing event at First Lake turned out poorly.
Darling said the museum had done a gorgeous remodeling job and there was an upcoming
open house.
Bardarson said the environmental science class at the high school sent her letters on
recycling and trash. They were very well done and good information given. She would leave them
with the clerk if anyone wanted to see them.
Hunt had an additional comment to his manager report.He recently received a letter from the
Director of the Department of Corrections regarding the status of the community regional jail
funding.A new formula had been determined by the state due to the extreme state budget cuts,which
was if a community jail didn't have a certain percentage capacity rate for the 2013-2014 state budget
year,the community budget would be cut. For Seward,that would be a reduction of approximately
45%. Hunt intended to speak to the state about this and would do everything he could. He
emphasized it was important for it to be understood that the city needed to be prepared and cutting
this budget would be costly for PERS studies, among other things.
CITIZEN COMMENTS
Sue McClure said the Brown and Hawkins exhibit was up at the museum.A special showing
of the new exhibit was May 28, 2015. She encouraged folks to come by and take a look. McClure
thanked Squires for coming to the Memorial Service at the American Legion. It was good to see
council and city participation and noted it was a nice event.The annual cemetery walk was June 21,
2015 beginning at 10:30 p.m. The public had one more opportunity to weigh in on the Kenai
Peninsula Borough budget next Tuesday, but comments would have to be presented in person.
Patrick Linton thanked council and administration for moving the process forward for the
Seward Community Health Center(SCHC)grant project. Even though the SCHC was trying to do
their due diligence on the capital grant,it was up for everyone in the community to make a good and
through decision by early August. Linton thanked the City Council for scheduling the work session
on this project.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None
ADJOURNMENT
City of Seward,Alaska City Council Minutes
May 26, 2015 Volume 39, Page 547
The meeting was adjourned at 9:23 p.m.
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