HomeMy WebLinkAbout06082015 City Council Minutes City of Seward,Alaska City Council Minutes
June 8,2015 Volume 39, Page 548
CALL TO ORDER
The June 8,2015 regular meeting of the Seward City Council was called to order at 7:00 p.m.
by Mayor Jean Bardarson.
OPENING CEREMONY
Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and
Marianna Keil Ristine Casagranda
Christy Terry David Squires
Iris Darling
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
Will Earnhart, City Attorney
Absent—Dale Butts
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Sharyl Seese thanked council for their letter of support for the volunteer hospice program in
Seward.The group pursuing this,who was under Seaview Community Services,was awarded a grant
to determine the feasibility of a volunteer hospice program. Seese invited the council to a meet and
greet event Thursday at the museum to find out what this program was about. She thought a
volunteer hospice program would help everyone in the area in a time of need.
Tim McDonald spoke on the council meeting and pointed out this was a council meeting and
it was the public's chance to see how the city was working. He looked up records, and it was the
mayor's prerogative to point out a point of order.Administration was out of order at the last meeting
for their comments in saying he was out of order. Comments like this didn't give a good impression
of the relationship between the public and the administration.McDonald stated the public needed to
trust the council and the administration and admonished administration for their comments last week.
Richard Noren asked for a variance or exception to the city's garbage removal requirement
policy. He had received a bill and didn't understand why he was being forced by the city to do
business with a vendor. Noren paid taxes for the transfer station and used it. The city was forcing
mass amounts of people to use a service he didn't think they should have to use. Things like wind
and wild animals kept Noren from using the garbage pickup service and so he took his garbage to the
City of Seward,Alaska City Council Minutes
June 8, 2015 Volume 39, Page 549
dump once a week and also recycled. He had lived here for five years and all of a sudden it was a
problem. Noren asked the council to look at the welfare of the community.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda
Terry moved Resolution 2015-053 to the consent agenda with no objection from council.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2015-053, Accepting The 2015 Volunteer Fire Assistance Grant (VFA) In The
Amount Of $6,170.10 And Authorizing The 10% Matching Funds Of $685.50 And
Appropriating Funds.
Resolution 2015-055, Setting The Mill Rate (Unchanged) For 2015, At 3.12 Mills.
Resolution 2015-056, Supporting The Qutekcak Native Tribe's Federal Recognition Efforts.
Approval of the April 27,2015 and the May 11,2015 Regular City Council Meeting Minutes.
Approve the Public Convenience/Eating Place Liquor License application for The Cookery.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards—None
Borough Assembly Report.Sue McClure reported the assembly successfully passed their
budget at the last meeting,and it was a good experience.They funded the schools to the budget cap
for the first time in many years. The overall mill rate stayed the same. At their next meeting, the
assembly would be discussing the citizen initiative to put back in the pro and con statements on
ballot issues in the borough election pamphlet. It was deleted originally because it was difficult to
objectively obtain both statements,but with this citizen initiative it could be reinstated.The assembly
was revisiting the anadromous stream ordinance. There was a proposed ordinance to repeal the 50
foot setback protection for the Kenai River Watershed and the Kasilof Watershed, which would
substantially scale back the original ordinance. There were also some code changes proposed
concerning utility special assessment districts and road assessment districts. The assembly was
looking at changing the requirement of obtaining 70% of the neighborhood to agree with an
assessment district to 60%. The Nikiski area had been plagued with crime lately. There have been
some community meetings, and residents were considering forming a service area for crime
prevention. If so, such an action would have to go to a vote of the people. McClure thanked those
locally who sent in emails concerning the budget.
City Manager's Report.Jim Hunt stated a purchase order for$35,619 was issued to HD
Supply Power Solutions for purchasing transformers. Hunt also handed out and read Lowell Point
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June 8,2015 Volume 39, Page 550
Sewage Lagoon update#11.
Long showed council a copy of a U.S. Army Corps of Engineers permit received for the
Seward Marine Industrial Center (SMIC) breakwater project, which was about a year's worth of
work to obtain. The city was closing a bid for construction on June 26, 2015. He thanked the
volunteers who helped on the last phase of the Mariner's Memorial Project,which consisted of the
public,city staff, and members of the U.S. Coast Guard Cutter Munro. He was honored to attend a
conference on building a sustainable future for Alaska in Fairbanks last weekend and said it was a
worthwhile exercise.
Keil said they had received some financial reports, but not the general report for the
enterprise fund balances.Hunt said they could provide that.Keil also asked administration to explain
to the public that the public voted to use the current vendor for garbage pickup and prior to this
contract the waste charge was on the utility bills. Hunt said the enforcement mechanism was
unwieldy, but the city had a law for mandatory garbage pickup and billing. Until this process was
reexamined,the city needed to enforce the code provision and the public needed to adhere to it.
Terry went to sign up for the reading program at the library last Saturday, and saw it was
closed. She understood it was short staffed. Council received a letter that staff wouldn't be able to
staff Historic Preservation Commission until after the summertime. Administration reported staff
support would only be provided for the minimum time required for meetings,which was quarterly.
111 City Clerk Johanna Kinney clarified the city code stated the minimum requirement for the Historic
Preservation Commission to meet was twice a year,not quarterly. Regarding the library,Hunt said
the hours were cut back in the library museum until they were fully staffed for safety reasons.Terry
requested the limited hours be on the city's website. Darling said it was good to know the hours of
the museum as well.
Hunt stated he wanted to improve the signage in the Railroad welcome area and would ask
for an appropriation for this out of the cruise ship tax. Casagranda hoped there would be some
mention of the downtown area.Keil asked if those would be quotes or proposals for that.Hunt said it
would depend on the price but they would go out for competitive procurement.
In response to Casagranda, Long stated the benches for the bus stops had been shipped and
once they arrived some assembly would be required.
In response to Bardarson, administration said they intended to begin the budget process in
July with departments, and anticipated they would approach council in September.
Casagranda stated she heard complaints about Lowell Point residents and businesses not
getting advance notice when the helicopter came in to install the bio domes at the sewage lagoon.
Casagranda said it seemed there was an employee shortage for the City of Seward and
generally around town. She felt it had a lot to do with the shortage of housing. She'd like to see the
city take on some kind of role in fixing this. Hunt said he'd been approached to discuss zoning and
build some moderate sized housing units. Bardarson added one of the Planning and Zoning
Commission priorities was to examine creating 30x100 foot lots.
City of Seward,Alaska City Council Minutes
June 8, 2015 Volume 39,Page 551
City Attorney's Report. Will Earnhart reported he sent a memo to the council on
marijuana legislation throughout the state. The city was waiting to see what the state would do first
before making any of their own rules regarding marijuana.Earnhart was working with the City Clerk
and City Manager on setting a training date for council and boards and commissions on the Open
Meetings Act and various processes,possibly in July. He would be working with administration to
bring back the garbage ordinance for review. Earnhart noted garbage was considered to be a little
different than other utilities in a municipality. Garbage didn't need infrastructure; it was more of a
public health and public safety issue. It didn't mean there couldn't be other waivers or processes in
place. But something needed to be in place to maintain public safety.
Other Reports,Announcements and Presentations—None
PUBLIC HEARINGS
Resolutions Requiring A Public Hearing
Resolution 2015-052,Authorizing The City Manager To Enter Into A Lease Amendment With
Carl I. And Kim Hughes To Extend The Term Of Their Lease By Thirteen Years, To Add
Two Thirty-Three Years Options,And To Add Their Son John C. Hughes.
Motion (Terry/Casagranda) Approve Resolution 2015-052
Long said this was a fairly uncomplicated lease amendment. The lessee's requested an
extension of lease and also to add another member as a lease holder.This had been reviewed by the
attorney and performance measures were already incorporated into the original lease,but Long said
they could be firmed up if council wished.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened
John C. Hughes was requesting to be signed on as a lessee and wanted to carry on in his
father's footsteps and keep his family in town.He took pride in Seward and was excited to be a part
of this business community.
Carl Hughes started a charter business 25 years ago in Seward so he could stay in town and
have the opportunity to see his children grow up in their community. Hughes started his business
with just him and his wife. They now had a four boat, eleven employee business that contributed
sales and property tax to Seward. When the initial lease was awarded in 1997, Hughes didn't
anticipate carrying on the business in his family, but was pleased to see now his family wished to
continue his charter company after he retired.He was not opposed to adding additional performance
clauses, but also felt his reputation spoke to how they operated in Seward, morally and ethically.
Hughes asked council to approve this resolution.
No one else appeared to address the Council and the public hearing was closed. I
Terry said the existing lease spoke on failure to construct a building,but they already had a
building. Long stated Article 1.5 of the original lease addressed development of leased land,
City of Seward,Alaska City Council Minutes
June 8,2015 Volume 39, Page 552
specifically, constructing a building on the land for the operation of the business. Long said
construction was not the objection and the continuance of this operation could be more explicitly
stated. Long also referred to Article 4 of the original lease, which addressed the use of the leased
land.He again stated there were other mechanisms that could be in place for capital improvements.
Bardarson stated she supported this extension.
Motion to Amend (Casagranda/Terry) Amend Resolution 2015-052, by adding
"OF LOT 7,BLOCK 6,SEWARD SMALL
BOAT HARBOR SUBDIVISION" to the
title.
Motion to Amend Passed Unanimous
Motion to Postpone (Darling/Casagranda) Postpone Resolution 2015-052 to the June
22, 2015 meeting.
Kinney noted if council wanted to postpone this resolution to another meeting,they may want
to consider making all the proposed changes first so the revised version can be noticed for the public.
To allow for more discussion, Darling and Casagranda withdrew the motion to postpone with no
objection from council.
Motion to Amend (Casagranda/Squires) Amend Resolution 2015-052 to add the
following additional section to the lease
amendment: "ARTICLE 4.1 USE OF
LEASED LAND.LESSEE shall continue to
operate their marine, retail and other
related businesses throughout the term of
the lease, and failure to do so constitutes a
condition of default."
Motion to Amend Passed Yes: Casagranda, Squires, Darling, Terry,
Bardarson
No: Keil
Motion to Postpone (Darling/Casagranda) Postpone Resolution 2015-052 to the June
22,2015 meeting.
Earnhart said the changes made tonight would not be considered substantial in nature and
wouldn't necessarily need to be re-noticed, so if council wished, they could likely vote on the
approval of this resolution tonight.
Darling and Casagranda withdrew the motion to postpone with no objection from council.
Main Motion Passed Unanimous
City of Seward,Alaska City Council Minutes
June 8, 2015 Volume 39, Page 553
UNFINISHED BUSINESS—None
NEW BUSINESS
Resolution 2015-054,Authorizing Use Of The Capital Credit Refund From Chugach Electric
In The Amount Of$211,659 To Extent Primary Electrical Service And Add A Fourth Recloser
At The Spring Creek Substation,And Appropriating Funds.
Motion (Terry/Keil) Approve Resolution 2015-054
Hunt stated the city received a capital credit from Chugach Electric Association for$211,659.
Based on input received, the administration recommended a portion of these funds be used
immediately to install a primary electrical extension in the Seward Marine Industrial Center(SMIC).
Long added the estimated cost was $110,000 and would service nine lots at SMIC. And
adding a recloser would extend service beyond the nine lots.Administration had considered giving a
rebate to every customer, which by their calculations would have come to approximately $71 per
account. Staff thought providing this electrical extension would be a better contribution to the
community and would come at a lesser cost than a customer rebate. Council had made comments in
the past that they wanted the city to move forward and install infrastructure when opportunities
presented themselves; staff felt this was one of those opportunities, especially with the new
development at SMIC coming ahead.
Casagranda said this project was half of what the credit from Chugach was and asked what
the city would do with the other portion. Long anticipated the other half would be banked for other
future uses, likely something electrical in nature.
In response to Darling,administration said the$110,000 cost was an estimate determined by
the Electric Department.
In response to Squires,Long stated he didn't think this work would be done in house as the
Electric Department was extremely busy and also short staffed. Squires noted Mustang Avenue was
not platted, and asked if the city had an easement platted for this area. Long believed they did.
Council requested the City Clerk make a technical change to the title of the resolution,
changing the word "extent" to "extend".
Motion Passed Unanimous
Other New Business Items—None
INFORMATIONAL ITEMS AND REPORTS
Proclamation recognizing National Hospital Week, May 10-16, 2015.
COUNCIL COMMENTS
City of Seward,Alaska City Council Minutes
June 8, 2015 Volume 39, Page 554
Terry said they had a work session coming up with the Seward Community Health Center
(SCHC)on June 18,2015 and hoped administration was working on coming up with answers to the
SCHC's due diligence questions. She wanted to know if administration thought they needed to meet
with council prior to that session. Terry noticed that on council agenda statements,there was a new
option under attorney review of"not applicable". It seemed like if it was not applicable for the
attorney to review or not review, it should still be marked "yes" or "no" in addition to "not
applicable". It wasn't a clear answer to her. She understood the idea, but it wasn't quite the entire
story.Long said this additional option was intended to address the matter of why didn't the attorney
review everything, as some things did not warrant a need to spend money on simple pieces of
legislation. So the thinking was if the attorney did not review the legislation, the "not applicable"
option was to answer the question"Why not?"Long was open to suggestions on how to improve the
attorney review on agenda statements.
Squires said tonight they approved money for installing electric at SMIC,and he applauded
administration for doing this, as he has stated repeatedly it was the city's obligation to do this.
Darling reminded everyone about the volunteer hospice program meet and greet event. She
encouraged the public to attend.
Long stated he was appointed to a borough wide marijuana task force.He noted in the lower
48,there were currently three or four neighboring states in lawsuits due to marijuana crossing state
lines,which he thought was interesting. It wouldn't necessarily be as big of an issue given Alaska's
location,but there was much to think about with the legalization of recreational marijuana use.
Hunt mentioned in addition to the resolution of support for federal recognition for Qutekcak
Native Tribe, he'd be drafting a letter of support, as well, from the city. He had not heard of any
attempts to open up a marijuana store in Seward.Hunt thanked McDonald for reminding him about
procedure and decorum in the council chambers.
Long said they had plans to meet with staff to prepare for the council work session on June
18,2015. It was hard to prepare to answer some of the due diligence questions asked by the SCHC.
He suspected administration's recommendation would be to not proceed with the grant award and
project. Bardarson felt getting all the same players in the same room would be a good start. A big
decision would be if they wanted to keep the hospital in the same location or move it altogether.
Hunt said this issue was difficult to weigh in on because the administration was not
intending to become immersed in a capital project. It was a challenge to provide answers to the
questions submitted by the SCHC to the city administration,but all answers predicated upon decision
of the city council. He was reluctant to make any recommendations at this point.
CITIZEN COMMENTS
Tim McDonald was thinking about the comments about the garbage service earlier tonight.
It seemed like requiring garbage pickup was a monopoly on its citizens. It was true the voters
approved this contract,but he believed this requirement extended beyond the city limits and if that
was the case,those people outside the city had no say in the process. McDonald didn't think it was
City of Seward,Alaska City Council Minutes
June 8, 2015 Volume 39, Page 555
right to force everyone into this and it seemed like it was a constitutional question.The city needed
to look at this operation and where they were going in the future.He anticipated some challenges on
this utility structure to try and make it more user-friendly.Citizens outside the city limits also didn't
get a vote on the conditions of things like the Lowell Point Road.McDonald asked council why they
were even considering building a larger hospital.
Richard Noren said,to him,the garbage pickup requirement was about a freedom of choice.
It was his responsibility to take care of his garbage. If he presented a health hazard or sanitation
issue,then he should be fined.Noren requested to be made aware when and where the city would be
reconsidering this issue.
Sue McClure, on behalf of the Resurrection Bay Historical Society (RBHS), reminded
everyone to come out on June 21,2015 for the Annual Cemetery Walk hosted by resident historian
Lee Poleske.It was a wonderful event.McClure stated she was President of the RBHS and said there
were discussions underway to have their members help keep the museum open on some afternoons.
On a personal note, McClure expressed distress the Library/Museum Department was so
understaffed and unable to keep regular hours.RBHS was willing to step up and volunteer to help in
this time of need.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Terry said the city sat as an electrical utility,and referenced Alaska Statute 29.35.050,which
allowed municipalities to provide for waste and Alaska Statute 29.35.060 which also allowed
municipalities to grant franchises by a vote of the people. Council couldn't simply override these
provisions because it was currently mandated by a vote of the people of Seward.
Squires agreed with McDonald on some of his points. He disagreed with the attorney that
garbage was not a utility. Squires believed it was a utility and one that needed to be fixed to be able
to accommodate some people with certain circumstances.He hoped they had a work session soon on
this issue.Customers could cancel their electric service if they wanted,but that was not the same for
garbage service and the city should fix that inconsistency. Squires said he would personally notify
Mr. Noren when the council had a work session on this issue.
Casagranda looked forward to having some better technology other than paper.
Terry added if there were recommendations regarding the SCHC due diligence questions,
she would appreciate them ahead of time.
Long agreed with McDonald that Seward was one community inside and outside city limits.
He corrected a couple of statements —the city was not requiring anyone outside city limits to do
anything; no one had to hook up to electric,nor did they have to have garbage service.
Hunt stated Lowell Point Road was owned by the Kenai Peninsula Borough and the city
maintained it the best they could as time was available. Ordinances enacted by council became the
laws of the city. The laws could be changed by changing the existing ordinances. He reminded
City ofSeward,Alaska City Council Minutes
June 8,2015 Volume 39, Page 556
everyone that the laws were established for the well-being of the community for health and safety
purposes.
ADJOURNMENT
The meeting was adjourned at 8:56 p.m.
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