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Home My WebLink About02122018 City Council PacketPhoto Credit: Colby Lawrence Monday, February 12, 2018 City Council ChambersBeginning at 7:00 p.m. The City of Seward, Alaska CITY COUNCIL MEETING AGENDA {Please silence all cellular phones during the meeting} February 12, 2018 7:00 p.m. Council Chambers David Squires CALL TO ORDER Mayor Term Expires 2019PLEDGE OF ALLEGIANCE Marianna Keil ROLL CALL Vice Mayor Term Expires 2018 CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULEDFORPUBLIC HEARING \[Those who have signed in will be given the first opportunity to speak. Ristine Casagranda Timeislimitedto 3 minutes per speaker and 36 minutes totaltimefor Council Member thisagenda item.\] Term Expires 2018 APPROVAL OF AGENDA AND CONSENT AGENDA Sue McClure \[ApprovalofConsent Agenda passes allroutineitemsindicatedby Council Member asterisk(*). Consent Agendaitemsarenotconsideredseparately Term Expires 2019 unlessa council member so requests. In the event of such arequest, theitemisreturned to the Regular Agenda\] Erik Slater Council Member SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2018 Proclamationsand Awards – None Borough Assembly Report Suzi Towsley CityManagerReport Council Member CityAttorneyReport Term Expires 2019 OtherReportsand Presentations Prince William Sound Regional Citizens Jeremy Horn AdvisoryCouncil (PWSRCAC) Council Member SewardIce Skating Rink Term Expires 2019 PUBLIC HEARINGS– None James Hunt City Manager Brenda Ballou City Clerk Will Earnhart City Attorney City of Seward, Alaska Council Agenda February 12, 2018 Page 1 1 8.UNFINISHED BUSINESS – None 9.NEW BUSINESS A.Resolutions *1.Resolution 2018-010, Appointing RileyShurtleffAsTheDeputyCityClerk. *2.Resolution 2018-011, Authorizing TheCityManagerToEnter Into A Sole-Source Agreement With Potelcom Supply For The Purchase Of Electric Watt-Hour Meters To Support The Meter Replacement Project Scheduled To Begin April 17, 2018 For$59,010, And Appropriating Funds. *3.Resolution 2018-012,To Accept Funds From A FY2018 Historic Preservation Fund Travel And Training Grant From The Office Of History & Archaeology In The Amount Of $2,701 With A Required Match Of $2,495 From The City, And Appropriating Funds. 4.Resolution 2018-013,Approving An Extension To The Audit Contract With BDO USA,LLCForTheYears 2017 And 2018, And Appropriating Funds. B.Other New Business Items *1.Approvalofthe January 22, 2018 Regular MeetingMinutes. *2.Appoint Cheryl Seese to the Historic Preservation Commission with a term to expire ection to the renewal ofthefollowing liquor license:#3909 Package Store forSeward Marketplace. *4.Non-objection to the renewal ofthefollowing liquor license:#2683 Package Storefor GatewayLiquor&FoodMart. Schedulea work session to discuss theSeward ice rink. (Casagranda) Schedulea work session with the Alaska Public Employees Association (APEA). Schedulea joint worksession with the PlanningandZoningCommission(P&Z), the PortandCommerceAdvisoryBoard(PACAB),and the HistoricPreservation Commission(HP) to review annual priorities. Schedulea work session to discuss Seward City Code, Section 2.05 – Records. Discuss City Projects and Goals. Discusssendingoneormorecouncilmemberstoelectricutilitytrainingin Eugene, Oregon in March, 2018. Discussconductingpublic input session(s)regarding the vacated AirForceRec Camp property. DiscussTravelAuthorizationReports(pre-travel) and Travel & Expense Reports (post-travel). INFORMATIONAL ITEMSAND REPORTS(No Action Required) Clerk’sReporton Public RecordsRequests for January, 2018. LocalGovernment Notice ofApplicationforRetailMarijuanaEstablishmentforThe Tufted Puffin. LetterfromAlaska Public EmployeesAssociation dated January 22, 2018. COUNCIL COMMENTS CITIZEN COMMENTS City of Seward, Alaska Council Agenda February 12, 2018 Page 2 2 13.COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14.EXECUTIVE SESSION A.Go into Executive Session to discuss the contract for the City Attorney. 15.ADJOURNMENT City of Seward, Alaska Council Agenda February 12, 2018 Page 3 3 CITY OF SEWARD Jim Hunt, City Manager P.O. Box 167 Telephone (907) 224-4047 Seward, AK 99664 Facsimile (907) 224-4038 MANAGER’S REPORT JANUARY 12, 2018 – FEBRUARY 2, 2018 The following purchase orders between $10,000 and $50,000 have been approved by the City Manager since the last council meeting: Fort Raymond generator relocation 01/11/18 Electric Department$13.211.55 Electric Power Constructors project 01/15/18 Harbor $36,225.00 Merritt EnterprisesHarbor annual janitorial services Flexi fend hardware freight and 01/15/18 Harbor $48,740.00 Transpac Marinas Inc. installation for SMIC moorage floats New plow truck (approved through 01/15/18 Park Maintenance$30,317.00 Kendall Ford resolution) ADMINISTRATION P&Z Work Session ASLC Board Meeting in Anchorage Tsunami Debrief with the Management Team DHSEM State Hazard Mitigation Plan (SHMP) –Project Kick-off Meeting City of Seward Resilience Workshop Earthquake Debrief and Disaster Planning with AVTEC Local Hazard Mitigation Plan SCHC / City Coordinating Committee Meeting Resignation letter from Executive Liaison (attached) 4 5 HARBOR Harbor has completed tenant moorage renewals for 2018 January through June moorage agreement. Conducted meetings with Hamilton Construction and R&M for the Breakwater project on 01/4/18, 01/11/18, 01/18/18, 01/25/18 and 02/01/18. Breakwater Project is complete. The boat lift schedules for the harbor side have slowed down. The City of Seward/Harbor had another successful Polar Bear Jump-off. Hamilton Construction has finished the widening of the 330 ton Travelift pit, waiting on the grout to harden before lifting any vessels. We had our first lift with the widened lift on 02/3/2018. The 50 ton Travelift blew a gearbox reducer while preparing for a lift during cold weather. One has been ordered and is being flown to Anchorage for pickup and harbor maintenance personal will install it. The Harbormaster traveled to Anacortes with R&M and Jeff Hamilton to inspect and approve the new floats for SMIC. They should be shipping next week. PND is the engineering firm for the South Harbor Launch Ramp replacement project. They have traveled to Seward this past week to look at and discuss options for the new South Harbor Launch ramp. PUBLIC WORKS Director: The Tsunami Warning on the early morning of January 23 was certainly the highlight of the last few weeks. Thankfully we did not have a tsunami wave. The event was however, was a very real “fire drill” that gave us all reasons to assess and improve emergency preparedness. Lowell Point Road funding is in the works. Governor Walker signed an emergency declaration for the damages. He also sent a disaster request to President Trump for consideration of Federal funds. Tunnel repairs are under way. Remember that these are work zones on each end of the tunnel that are restricted as such. Drive slow through the zone by the bridge and watch for equipment and personnel in the area. Please avoid the work zones up Lowell Canyon so the contractor can work without delays. Water, Wastewater Utilities: Normal winter work with some repairs and upgrades to the SMIC water pump house. Streets: Cold weather without much snow gave us opportunities to catch up on other tasks to keep roads in good driving condition. Kudos to all departments involved in sanding the Polar Bear Plunge areas. Shop: Catching up on some back-burner projects. Normal wear and tear along with Preventive Maintenance at the shop right now. No major equipment repairs are in the works. Buildings: Working on the boilers and heat systems at Library, City Hall, and Annex to find the ongoing glitches in the systems. Added more LED lighting in the Annex building. 6 Construction Zone at the Lowell Point Road bridge area. Drive Slow! PARKS AND RECREATION Parks Maintenance & Campgrounds: Upon request of Council and some citizens, we have compiled Winter Camping revenues and expenses and are happy to report that we have experienced revenue surpluses of $688.98 October 16th - November 15th, $491.07 November 15th - December 17th and $905 December 17th - January 14th. Staff continues to work on snow and ice maintenance and management. We’d like to thank Public Works in their purchase of a new sanding unit that so far has worked flawlessly. Second lake ice has been in great shape the last few weeks thanks to mother nature and our awesome volunteer. Staff aids in this effort whenever time allows. The warehouse organization project is going very well. Traci has been working tirelessly in helping the TYC, Rec Room and Sports and Recreation in building shelving and helping them organize their prospective storage areas. We continue to work with T2 Systems in programming and pay station upgrades. We are gearing up for the 2018 camping season which we hope will set yet another record in camper nights and revenues We’d like to thank the City Council for their approval in the purchase of a new plow truck. We are hoping for little to no snow the remainder of this season as our old one may not make it much longer. Estimated delivery of new truck is about 60 days. Our shower house was broken into Sunday January 21st. The vandal(s) broke into our change makers and coin- operated shower boxes to find $0.00 but caused about $1,200 worth of damage. Teen Rec Room: Videos, computer games, music, healthy snacks, corn-hole matches, etc. Teen & Youth Center: Josie attended Seward Community Foundation lunch to discuss grant opportunities. Kids Superhero Carnival was held Saturday, January 27 Offered ‘School’s Out Day Camp’: February 8 & 9 Summer Camp Programming continues. 7 th Leadership Council will meet City Council on February 26 for Dinner at the TRR followed by an introduction at the City Council meeting. Partnered with Boys and Girls Club for a combined activity on 01/19 at the Seward Elementary School. Sport & Recreation: Urbach’sYouth Basketball: seeking and training coaches; recruiting players. League began Saturday, February 4th Adult Basketball, Competitive Volleyball & Recreational Volleyball leagues in full swing. th Archery began Wednesday, January 17 and will run through February 28 Summer races’ coordination th TelAlaska Volleyball Invitational Tourney Saturday, April 28 st Diaper Derby registration open: event will be held Saturday, March 31 no on-site registration. COMMUNITY LIBRARY AND MUSEUM December 2017 Statistics 8057 Front Door Counter 135 Museum Admission 14 Programs 2677 Joint Library Catalog Circulation for Seward 489 Seward Joint Library Catalog Users for Seward 492 Alaska Digital Library Circulation for Seward 15 Passport Applications 4 Notaries 93 Room Uses 10 Proctored Exams 595 Public Computer Sessions The Library & Museum Wifi have been updated for improved functionality to address copyright infringement activities thanks to the help of the City of Seward MIS department.We are also in the process of seeking eRate funding to help purchase improved hardware and software to manage the patron network. Our Wifi access has also been restored to a regular schedule and is available Sunday-Saturday, 6:00 am-midnight. Home School Lunch Bunch is the last Wednesday of every month 12:30-1:30pm. On January 31st, the Seward Community Library and Museum will be inviting all home school families into the Museum for a behind the scenes and introductive tour! We are excited to see young enthusiastic learners in our spaces and will feature a scavenger hunt within the museum and have students check out the Seward Archive. The Story Time Program on Fridays at 11:00 amare becoming well received weekly events for small children and their care givers, thanks to creativeprograming that celebrates science, the arts, and building partnership with Library neighbors like the Alaska Sea Life Center and collaborating with the Museum Curator. In January, Story Time has already seen a turn out rate that’s been higher than in the past year and a half!We are very excited to see the new growth and friendships this program is building with young families and our neighbors and invite all to join us with preschool aged children and their siblings. The monthly Film Movement on second Thursdays at 5:30pm in the Meeting Room will feature the movie Paradise on February 8th for adults. It is black and white and is not rated and is spoken in Russian, German and French with English subtitles. The film synopsis features Olga, a beautiful Russian countess and member of the French Resistance; Jules is a French-Nazi collaborator who is assigned to investigate her case; and Helmut is a handsome, high-ranking, yet naïve German SS officer who once fell madly in love with Olga and meets her again when she is shipped to a concentration camp. The film depicts a new perspective on the Holocaust with the morally complex choices that one must make during dark times. 8 Saturday, February 17th at 11:00 am the Seward Community Book Club will be discussing The Zookeeper’s Wife been imprisoned in the Warsaw Ghetto following the German invasion of Poland. The Community Book Club has also recently selected the books The Eternal Wonder by Pearl S. Buck, The Handmaid’s Tale by Margaret Atwood and The Tortilla Curtain by T.C. Boyle for the months of March through May. January Artifact of the Month: The SCLM January Artifact of the Month is a folk art collage. The collage is made of glass shards in a variety of colors, glued onto fabric in a floral pattern. The glass was collected by a clerk from the Seward Drugstore following the 1964 Good Friday earthquake, using shards from broken bottles inside of the store. It was then given to Paul and Hazel Stockard, the drugstore’s owners, whose son donated the piece to the Resurrection Bay Historical Society in 2017. We are grateful to this unknown clerk, who thought to create a bit of beauty during a time of chaos and tragedy. 9 The February Museum Drop-In Craft will be paper quilt squares on February 9th and 10th. The January Museum Drop-In Craft was held on January 12th and 13th, and coincided with the Second Saturday event with a total of 6 adults and 11 children participating. Supplies were provided to make paper mittens, which could be decorated with buttons, jewels, stickers, and crayons. We were pleased to host a Cooper Landing School visit to the museum in January. 14 children and 6 adults participated in a fun scavenger hunt and learned about Seward’s history. Please call to make an appointment for a school or group visit. The January MuseumDrop-In Craft(paper mitten craft) and the February Museum Drop-In Craft (paper quilt squares craft) coincided with the Second Saturday event with both adults and children participating. We will continue to host an independent creative opportunity during Second Saturdays in March and April, so stop by and join us. FINANCE The finance department prepared an explanation of the newly-implemented changes to the Electric Tariff which will affect utility bills going forward. The online document explains the difference between the line items appearing on the “old” bills versus the “new bills”, is attached to this report, and is also available on the City’s website at http://www.cityofseward.us/DocumentCenter/View/4114.The former “Electric kWh Charge” previously combined the energy charges for both the City and Chugach into one-line item. That has been changed so that on the new bill format, the City’s energy charge stands alone on the “Seward Utility Charge”, and is expected to change only when the winter and seasonal rates adjust, or when the Electric tariff is modified by the City Council. This charge will be reduced effective January 15, 2018 based on the effective date of the tariff change, to the rate of $0.0797 for Residential class and $0.09017 for Small General Service class. The former “Elec Fuel Adjustment Factor” previously reflected the fuel costs charged by Chugach Electric to the City, passed along with no markup, to our customers.On the new bill format, the Chugach fuel costs are combined with the Chugach energy charges into a single line called “Cost of Power Adjustment”; this charge is expected to fluctuate monthly as fuel costs fluctuate and/or Chugach amends its rates, and reflects the total costs billed to the City by Chugach, passed along with no markup, to our customers based on the kilowatt hours sold to our customers. The former “Operations & Infrastructure Fee” is simply renamed to “Customer Charge”.Also beginning January 15, a new FLAT System Delivery Charge fee of $28.75 will be charged to customers in all classes, for months in which they consume less than 150 kilowatt hours of power; this charge is in addition to the monthly Customer Charge. 10 11 12 Utility billing staff are preparing to send letters to customers affected by the recent tariff changes, including water customers previously classified incorrectly as metered customers, currently inactive customers and customers using less than 150 kWh of power who will now be charged the minimum $28.75 System Delivery Charge, and other affected customers. The Finance Department has been awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report.The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The City of Seward’s finance department has received this prestigious award for each of the past 24 consecutive years and we are very proud of the staff for their dedication and commitment in this positive achievement. 13 14 15 The department has been diligently working to respond to public records requests, but some of the requests are estimated to take more than 20 hours of staff time to adequately research, pull records, review and redact, and oversee the public review.The failure to budget for one full-time position in the department is challenging our ability to accomplish the general work of the department. Staff is beginning to prepare for the annual audit as well as coordinating the numerous software system upgrades andtraining efforts needed to ensure a smooth mass meter exchange project beginning April 17. This involves major updates to our billing system software, addition of new modules requiring staff training, and installation of new software to communicate with the automated meter reading hardware which will communicate with the billing system.As staff workload increases, it is increasingly more difficult to accomplish our critical tasks with the loss of this staff person. In addition, we will be advertising for a new personnel officer in the near future, as the personnel officer has informed us of her intent to leave the City due to the constant negativity and harassment aimed at her and her position from individuals outside the City. The finance department received a call from the City’s insurance company reminding us that the City’s insurance policy mandates that prior to any termination of employment, the City is required to address the matter with our attorney and follow advice of an attorney.Failure todo so eliminates the City’s insurance coverage with respect to that particular matter. 16 17 18 Sponsored by:Clerk CITY OF SEWARD, ALASKA RESOLUTION 2018-010 ARESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPOINTING RILEY SHURTLEFF AS THE DEPUTY CITY CLERK WHEREAS, on October 23, 2017, Council approvedResolution 2017-070 that authorized the employment agreement for then Deputy City Clerk Brenda Ballou to replace former City Clerk Johanna Kinney; and WHEREAS,immediately following this appointment, at the direction of council, the City ffice posted and advertised the vacatedDeputy City Clerk position; and WHEREAS,throughout the months of November and December 2017, applications were received, interviews were conducted, and Riley Shurtleff was selected from the pool of applicants; and WHEREAS, SCC 2.20.045 (10) requires that any person hired in that position be approved by a majority vote of the city council. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The Seward City Council approves Riley Shurtleff as the Deputy City Clerk, with all range and progressive requirements established in the current Deputy City Clerk job description. Section 2.This resolution shall take affect immediately upon its adoption. th PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12 day of February, 2018. THE CITY OF SEWARD, ALASKA David Squires, Mayor AYES: NOES: ABSENT: ABSTAIN: 19 Council Agenda Statement Meeting Date: February 12, 2018 To: City Council From: Brenda Ballou, City Clerk Agenda Item: Appoint Riley Shurtleff as Deputy CityClerk BACKGROUND & JUSTIFICATION: On August 14, 2017, the City Council approved Resolution 2017-044 to accept the resignation of City Clerk Johanna Kinney, effective October 9, 2017. Council directed Kinney to begin advertising for the City Clerk vacancy immediately. On October 23, 2017 council appointed Deputy City Clerk Brenda Ballou as the new City Clerk, and directed Ballou to begin advertising for the vacated Deputy City Clerk position immediately. On December 19, 2017, Riley Shurtleff was offered the job of Deputy City Clerk, and on December 21, 2017 he accepted. Mr. Shurtleff was a resident of Genoa, New York, and so requested some time to prepare for his move and transition to Seward. The offer letter provided for a start date of no later than February 15, 2018. Seward City Code 2.20.045 (10) states the City Clerk shall have the power to appoint deputies, if needed, provided that the appointment of all deputies shall be approved by a majority vote of the council. Riley Shurtleff has been conditionally offered the position of Deputy City Clerk and staff respectfully requests council approval of this appointment. INTENT: To appoint applicant Riley Shurtleff as the new Deputy City Clerk, as required by Seward City Code Section 2.20.045 (10) YesNoN/A CONSISTENCY CHECKLIST: 1.Comprehensive Plan:11.3City Government and Finances.X Strategic Plan :The mission of the City of Seward government is to 2.X provide quality leadership and economic wellbeing of its citizens 3.Other (list):Seward City Code, Section 2.20.045X FISCAL NOTE: Funding for . 20 Approved by Finance Department: __________________________ ATTORNEY REVIEW: Yes_____ No__X____ Not Applicable_____ RECOMMENDATION: Approve Resolution 2018-010, authorizing the City Clerk to appoint Riley Shurtleff as the Deputy City Clerk. 21 Sponsored by:Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A SOLE-SOURCE AGREEMENT WITH POTELCOM SUPPLY FOR THE PURCHASE OF ELECTRIC WATT-HOUR METERS TO SUPPORT THE METER REPLACEMENT PROJECT SCHEDULED TO BEGIN APRIL 17, 2018 FOR $59,010, AND APPROPRIATING FUNDS WHEREAS,the Seward City Council approved Resolution 2017-011 authorizing an agreement between the City of Seward and National Meteringand Technical Services LLC to replace the electric watt-hour meters on the Seward Public Utility(“Utility”) system; and WHEREAS, the quoted price for replacement of system-wide meters requires that the City of Sewardsupply the necessary replacement meters to National Metering in a timely fashion; and WHEREAS,the Utility has acquired all of the necessary meters for residential service through the Kodiak purchase,but lacks 218 commercialand net metering-capable (bi-directional) type meters; and WHEREAS, Potelcom Supply isthe only dealer in Itronwatt-hour meters in Alaska, andhas quoted $59,010 to supply the necessary meters; and WHEREAS,Seward City Code §6.10.120 exempts from competitive procurement, the purchase of supplies or materials which can only be furnished by a single dealer, and Potelcom Supply is the sole dealer of Itron meters in Alaska. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Manager is authorized to enter into a sole-source agreement with Potelcom Supply for the purchase of electric watt-hour meters to support the meter replacement project scheduled to begin April 17, 2018 and bi-directional meters to accommodate future net metered customers for the amount of $59,010. Section 2. The Seward City Council hereby finds that it is in the public interest to exempt from competitive procurement, the purchase of Itron meters from Potelcom Supply based on the recitals above which are incorporated herein. Section 3.Funding in the amount of $59,010 is hereby appropriated from the Electric Fund net assets account no. 15000-0000-3400to the Meteringoperatingsuppliesaccount no. 15000-3009- 7215. 22 CITY OF SEWARD, ALASKA RESOLUTION 2018-011 ___________________________ Section 4.This resolution shall take effect immediately upon its adoption. th PASSED AND APPROVEDby the City Council of the City of Seward, Alaska, this 12 day of February, 2018. THE CITY OF SEWARD, ALASKA David Squires, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: ______________________ Brenda J. Ballou, MMC City Clerk (City Seal) 23 24 25 26 27 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,TO ACCEPT FUNDS FROM A FY2018 HISTORIC PRESERVATION FUND TRAVEL AND TRAINING GRANT FROM THE OFFICE OF HISTORY & ARCHAEOLOGY IN THE AMOUNT OF $2,701 WITH A REQUIRED MATCH OF $2,495 FROM THE CITY, AND APPROPRIATING FUNDS WHEREAS, the State of Alaska Office of History and Archaeology sought applications for a Historic Preservation Fund: Certified Local Government Travel and Training 60-40 Matching Grant from Certified Local Governments of the State of Alaska on January, 11, 2018; and WHEREAS, the City of Seward is a Certified Local Government (CLG) with a Seward Historic Preservation Commission; and WHEREAS,the purpose of this grant is to allow up to twopeople representing the Seward Historic Preservation Commission to attend the National Alliance of Preservation Commissions: Forum 2018 held on July 18-22, 2018 in Des Moines, Iowa; and WHEREAS, the full cost for twoSeward Historic Preservation Commissioners to attend the conference is estimated at $5,176 with the State’s share of $2,701 and a required Citymatch of $2,475; and WHEREAS, the City of Seward will reimburse the Seward Historic Preservation Commissioners attending the conference according to the terms of the grant agreement. 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 accept a Historic Preservation Fund Travel andTraining from the State of Alaska as attached hereto in substantial form. Section 2. Funding in the amount of $2,701 is hereby accepted from state grant revenue account number 01000-1500-4252-0011 and appropriated to education and training account number 01000-1500-7302-0011. Section 3. Funding in the amount of $2,476is hereby accepted from the General Fund reserve account number 01000-0000-3400 to education and trainingaccount number 01000- 1500-73029-0011. Section 4. This resolution shall take effect immediately. 28 29 30 31 32 33 34 35 Sponsored by:Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-013 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AN EXTENSION TO THE AUDIT CONTRACT WITH BDO USA, LLC FOR THE YEARS 2017 AND 2018, AND APPROPRIATING FUNDS WHEREAS, the Seward City Council passedResolution 2015-014 on February 23, 2015, authorizing a three-year contract with BDOUSA, LLC (“BDO”) with an option to extend for an additional two years; and WHEREAS, the City’s audit was conducted by BDO in 2014, 2015 and2016and the current auditor’s performance has been excellent and within budget, despite the City’s transition to a new financial accounting system and a new federally qualified health center during this period of performance, as well as implementation of the new Governmental Accounting Standards Board (GASB) Statement No. 68 related to allocation of pension liabilities, with another major GASB Statement coming forth in 2018 related to the allocation of pension-related healthcare liabilities; and WHEREAS,auditor rotation is common in the private sector but less common in the public- sector where the lack of competition among audit firms fully qualified to perform public-sector audits is often managed through mandatory turnover of individual audit staff rather than audit firms, and between 2014 and 2017 the majority of the audit team serving on the City’s audit experienced rotation, including the two highest-level auditors; and WHEREAS,BDO has served as the auditor for both theCity of Seward and the Seward Community Health Center(“CHC”) where synergies are gained by utilizing the same firm, since most of the financial transactions of the Seward CHC are reported within the Comprehensive Annual Financial Report of the City; and WHEREAS,the City’s auditis scheduled to begin in eight weeks, and a competitive request for proposals process is expected to result in a delay of the audit fieldwork, potentially delaying the audit until May or later,with May being the month where finance staff is fully engagedin the system-wide automated electric meter exchange project, with sole responsibilityfor ensuring the accuracy of utility billing changes, making staff unavailable for audit work in May; and WHEREAS, the current contract with BDO resulted from a competitive request for proposals (“RFP”) process in 2015 where, for the third consecutive time, only twoqualified and responsive proposals were received in response to a competitive procurement process and because no new auditing firms have entered the Alaska market since that time, the outcome of an RFP at this time is likely to produce similar or the same results; and WHEREAS,the goal of a competitive procurement process is generally to balance the 36 CITY OF SEWARD, ALASKA RESOLUTION 2018-013 _____________________________ quality and thoroughness of an audit against its cost, andbased on the previous competitive process, potential cost savings resulted solely from a 50% reduction in the length of the audit, reducing the current two-week audit to a one-week audit scope, since hourly cost comparisons showed that BDOs hourly rate was lower than the alternate proposer. 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 execute Amendment No. 1 to the Agreement with BDO USA, LLC in substantially the form as attached hereto, to extend the contract for two additional years, allowing completion of the audit for years ended 2017 ($111,295) and 2018 ($114,634). Section 2. Additional funding is hereby appropriated from General Fund reserves account no. 01000-0000-3400 to the audit services accountno. 01000-1110-7000, as follows: 1) $1,295 in 2018; and 2) $2,634 in 2019. Section 3.This resolution shall take effect immediately upon its adoption. th PASSED AND APPROVEDby the City Council of the City of Seward, Alaska this 12day of February, 2018. THE CITY OF SEWARD, ALASKA _________________________________ David Squires, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: _________________________ Brenda J. Ballou, MMC City Clerk (City Seal) 37 38 39 40 41 42 43 44 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page CALL TO ORDER The January 22, 2018 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Squires. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Squires presiding and Marianna Keil Ristine Casagranda Sue McClure Erik Slater Suzanne Towsley Jeremy Horn comprising a quorum of the Council; and Ron Long,Acting City Manager Brenda Ballou, City Clerk Will Earnhart, City Attorney Absent None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Leighton Radner said he had been an attendee of the Teen & Youth Center (TYC) and now the Teen Rec Room (TRR); in total he had been going for around six years. His 14 year old brother had recently received a letter from TRR banning him for 30 days; Radner said his brother had been questioned by the police department, not charged for anything. Radner thought the TRR should be a warm, inviting place. He said the kids in Seward needed a safe, consistent place to relax with friends. Kerry Romig said she owned a business in town, was a Navy veteran, and had over 30 years of leadership experience. She wanted to comment about the leadership within the city on things that affected all of our lives and our businesses, and about what it meant to be a productive member of the Seward society. She expected professionals to work together, regardless of personal feelings. There was a lot of noise today about the potential firing of the city manager. Romig saw the city manager as a pleasant and kind person, good leader. In April 2016 there was a newspaper article about the city freezing pay for city employees while the city manager was receiving a raise. After making it known privately that Romig thought it would be more appropriate for the city manager to wait until everyone could receive a pay raise, she received a threatening Facebook message about how her business could be negatively impacted if she continued. 45 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Andy Mezirow said he was a local resident and business owner, and served as a voting member on the North Pacific Fishery Management Council; he understood that being on a council sometimes required making difficult and controversial decisions. Tonight he wanted to speak about the city manager; he wondered if it was possible to address performance concerns through the annual review process. If there were deficiencies with how department heads were managed, perhaps council should direct the city manager to provide strong and clear direction. Mezirow wondered what kind of new city manager council would expect to find. He was also concerned that the city would experience a break in continuity with current projects. City Manager Hunt and Assistant City Manager Long had been one of the most pro-business, pro- Seward, and pro-fishing administrations he had ever worked with. Kim Kowalski-Rogers usually watched council meetings from home, but wanted to come tonight. She had started to wonder what the citizens of Seward were actually thinking; there have been complaints about specific departments, name calling, accusations that the city manager was a bully, misspelled words, and concerns about posted rules. She wondered why some of these complaints were being raised at council meetings instead of being taken care of at the department or administrative level. Kowalski-Rogers had worked her entire career with the city in many capacities, and she emphatically said the city manager was not a bully. She had never witnessed, nor been the recipient, of any bullying . The real bullies were the citizens who came to council with these minor complaints. Paul Rupple said three years ago in January 2015, the city manager had his contract extended and received araise from the city council; now he wondered what had changed in the last three years. What he saw were newly paved roads, continued development at the Seward Marine Industrial Center (SMIC), and record-setting tourism numbers. Rupple said there were many people who were very optimistic about the future of Seward, and part of that was due to the city manager. Rupple felt Huntwas an advocate for the city, and in all his interactions with him, Hunt had been honest with him, and he always received a quick response. He was concerned that the city manager and his family were being treated poorly; he urged the council to be more respectful and more thoughtful. Rupple appreciated the tough job of being on council, and thanked council for their service. Cliff Krug said last Saturday was the first Seward Second Saturday and there had been 26 businesses which participated; most had reported improved business activity. Those businesses that tracked their promotions through social media reported a 25-44% activity increase. The next Second Saturday would be February 10, 2018; home businesses and summer seasonal businesses were welcome to take part. The idea for Seward Second Saturday had sprung from the Seward Business Network which met on the first and third Thursday mornings at 8:00 a.m. at the Breeze Inn. The Seward Chamber of Commerce and the Historic Preservation Commission would be working together on improved signage to promote and facilitate tourism. Josie McClain said she was a supervisor at the TYC. As a supervisor, she tried to produce the best programs possible for the families of Seward; judging from the comments she received from students and their parents, the TYC was doing a pretty good job. She encouraged her staff to share their thoughts about how to improve the program; she wanted to afford her staff the same kind of support that she felt through her years of experience with the city. In each of the various positions she had held at the city, her supervisors had helped her learn and grow. 46 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Brittany Paquette said she had recently joined the city as the new TRR coordinator. She wished to introduce herself and said she would be speaking this evening as someone who aligned with truth, integrity, and justice. Since coming on board at the TRR, she had endeavored to uphold the following principles of moral and ethical integrity at the Teen Rec Room, and she summarized the10 Golden Rules to Professional Ethics in the Workplace by Leandro Valente:1) always strive for excellence, 2) be trustworthy, 3) be accountable, 4) be courteous and respectful, 5) be honest, open, and transparent, 6) be competent and improve continually, 7) always be ethical, 8) always be honorable and act with integrity, 9) be respectful of confidentiality, and 10) set good examples. Paquette thought these were sound principles to live, work, teach, and lead by. She stood by her program and her core principles. Bruce Stanford was here on a personal note, as a friend of the city manager. The city manager had brought in over $89 million for the city. He thought it was low for the special meeting to be called, and he thought the city manager was due a fair hearing for his employment issues with the city council. Stanford said Hunt worked tirelessly for the city and he pushed the right buttons in the halls of Juneau. Kelley Lane was excited to see the room overflowing tonight. As a city employee, she had concerns about the grievance process. She wished the grievance process was clearly stated and readily available for employees. Lane thought the current process did not protect employees from losing work and social standing; rather, it was a long and drawn out process. She wished to see the opportunity for people to honestly speak about the troubles that have been going on, and to see everyone come together. Dean Kasischke had been a local business owner since 1988. He thought the city manager seemed to have been doing a good job, and he thought Hunt should have a fair shake with his contract. Maya Moriarty had been here since 1997 and was an active member of the community. She had submitted an email to the council today, and wanted to reiterate her support of the city manager. She was concerned that projects currently underway would fall through the cracks; she worried that state and federal monies would go away. She understood there were personnel issues within the city, and encouraged council to simply follow the process. Tim McDonald thought Seward was getting to the point that city council should become full-time paid employees. He thought the town was falling apart and there was no team spirit. Carol Griswold said it was a phenomenal turnout at tonight meeting. She wanted to follow employee forms policies and procedures posted online. Since the last council meeting, Griswold had performed some extensive research on workplace bullying. Regarding employee conduct, the only issue currently addressed in that section today was sexual harassment; she thought workplace bullying could be added to expand the topic. In the 2030 Seward Comprehensive Plan, she wondered whyorganizational chart included; she wished council would consider including this information. 47 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Patrick Messmer thanked council and administration. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda Casagranda removed Resolution 2018-005, Resolution 2018-006, Resolution 2018-007, and Resolution 2018-008 from the consent agenda. Casagranda added an Item under Other New Business to discuss the annual audit with BDO. Casagranda added an item under Other New Business to schedule a work session to review the employee grievance procedure. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the January 8, 2018 Regular Meeting Minutes. Non-objection to the renewal of the following liquor license: #5356 Restaurant/Eating Place Non-objection to the renewal of the following liquor license: #177 Beverage Dispensary Tourism for Breeze Inn. Non-objection to the renewal of the following liquor license: #1130 Beverage Dispensary for SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards None Chamber of Commerce Report. Cindy Clock said the annual Community Awards Banquet was held last Friday; she congratulated Sue McClure for winning the award for Outstanding Community Service, Jean Bardarson for Person of the Year, and Mike Ritz for Business of the Year. The chamber board was planning to offer an education seminar on preventing retail shoplifting and theft. Two members of the chamber staff would be attending the small business management class offered by Tom Tougas which would begin on March 6, 2018 and last for 10 weeks. The chamber was busy planning for spring activities: May 18-20, 2018 Rotary Conference; Sports & Rec Shows; Seward Harbor Opening & Mermaid Festival; ribbon- cutting ceremony at SMIC to promote the completion of the breakwater project. The annual Polar Bear Jump would be this Saturday. Doug Capra would be at the chamber lunch on Friday talking about the Rockwell Kent anniversary. Clock announced that the brand new 2018 Seward guides had just arrived. 48 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page City Manager Report. Acting City Manager Ron Long reported the following purchase orders between $10,000 and $50,000 had been approved by the City Manager since the last council meeting: None. Long said, following up on TRR policies review discussed at the last council meeting, administration had begun a review, and would be providing a report to council soon. The Coast Guard Commandant in Juneau had contacted Long this morning to discuss fast response cutters. The gtoday signed eclaration of Emergency for Lowell Point Road damage due to the storm surge in early December, 2017; this would free up approximately $1 level. In response to Squires, Long said the borough would be the recipient of that assistance money. In response to Casagranda, Long said the Port and Commerce Advisory Board (PACAB) discussed having a SMIC party in April to celebrate the completion of the breakwater project. Also in response to Casagranda, the SMIC Development Plan would be coming forward for council approval very soon, and Long commended PACAB for accomplishing the plan review and update in just three shortmonths. Long said the 2018/2019 final budget book should be going to print very soon. Casagranda wished to see a consolidated report which reflected all encumbered funds, and Long said he would provide that. In response to Casagranda, Electric Utilities Manager John Foutz said he and Willard Dunham usually attended the Alaska Railbelt Cooperative Transmission & Electric Company (ARCTEC) meetings, and Foutzwouldbe happy to let council knowwhen those meetings were coming.Regarding the likelihood of another big storm surge happening again, Long said several things would have to happen again simultaneously: a super high tidein Resurrection Bay,significant swell activity in theGulfof Alaska,and a storm surge pushing extra water up on the shore. Long thought the oddsof all that happening again would below, but depending upon the severity, new damagewould likelybe considered a separate incident. City Attorney Report. Will Earnhartstated Police Officer Armstrong had been cleared by the state of any wrongdoing in the shooting incident. Earnhart sent his condolences to the McComas family. Although Earnhart did not draft a written report, he had billed the city for 58 hours last month; some of his time had been spent in preparation for the APEA work session, and some of his time had been spent addressing grievance issues. Earnhart stated there were supervisors that were extremely frustrated with the grievance process; he encouraged everyone to stop personalizing and start discussing the issue. Earnhart offered to work directly with Council Member Towsley to review the grievance process from each of their very different perspectives, and perhaps bring some ideas back for the next work session; council unanimously supported Towsley meeting with Earnhart to develop ideas. In response to Squires, Earnhart agreed to review the language submitted by citizen Carol Griswold re anti-bullying policy to consider adopting some of the language into the existing city code. Further, Squires requested Earnhart consider the application of the policy to protect both ways between city staff and city council. Keil added that she wished the city attorney would include administration in his review, since a city policy already existed, and council unanimously supported that request. In response to Casagranda, Earnhart said it was not uncommon to have an organization chart included in a city code and charter. Keil said it had been included in previous comprehensive plans. 49 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Long said the most current and accurate organization chart could be found in the budget. Other Reports, Announcements and Presentations None PUBLIC HEARINGS Resolution 2018-004, Authorizing The City Manager To Enter Into A New Lease With Exit Marine, LLC For Lot 4 Block 4 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 2017-13 Seward Recording District, Third Judicial District, State Of Alaska. Motion (Keil/Casagranda) Approve Resolution 2018-004 Long said this business had received a short term lease from the city just about one year ago, and in that time the business had performed and accomplished everything they were obligated to do. all their accounts, and they had their Stormwater Pollution Prevention Plan (SWPPP) in place. Deputy Harbormaster Matt Chase added that this business was a great asset to the yard at SMIC; they had plans for growth, and everything they have committed to do they have done. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonaldwished to know the term of the lease. No one else appeared to address the Council and the public hearing was closed. Casagranda said this was a 20 year lease with two 5-year extensions. Squires commended administration for cleaning up the hazardous waste language from the former lease with Exit Marine. Motion Passed Unanimous UNFINISHED BUSINESS None NEW BUSINESS Resolution 2018-005, Adjusting The Contract Amount Of Resolution 2017-011 For National Metering From $178,684 To $198,847, And Appropriating Funds. Motion (Keil/Casagranda) Approve Resolution 2018-005 Long said because the meter exchange work had been delayed from last summer, and because the city and the citizens would greatly benefit from have the contractor perform the work inside of one single utility billing cycle, there was a cost adjustment that would be incurred which was the 50 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page reason for this resolution. Motion Passed Unanimous Resolution 2018-006, Adopting The Port And Commerce Advisory Board Priorities From February 2018 To February 2019. Motion (Keil/Casagranda) Approve Resolution 2018-006 Long said this was a priority list that the Port and Commerce Advisory Board (PACAB) put together, and would be reviewed at the annual joint work session with council. Motion to Amend (Casagranda/Towsley) Amend Resolution 2018-006 by adding a new Keil wished to wait to amend this list until council had the opportunity to meet with PACAB in the joint work session. Casagranda recalled the passionate testimonies of fishermen wanting to have a crane in the harbor, and wanted to make sure those pleas were not forgotten. McClure and Slater concurred with Keil. Motion To Amend Failed Yes: Casagranda No: Keil, Slater, McClure, Towsley, Horn, Squires Main Motion Passed Yes: Keil, Slater, Horn, Towsley, McClure, Squires No: Casagranda Resolution 2018-007, Retroactively Amending The 2017 Budget To Account For Additional Sales Tax To The Hospital Fund Based On Additional Collections And Closing Out Completed Projects At Year-End, And Appropriating Funds. Motion (Keil/Casagranda) Approve Resolution 2018-007 Long said this was a budget true-up resolution; it was nice that the sales tax revenue came in higher than anticipated. In response to Casagranda, Finance Director Kris Erchinger said during the budget process, one-quarter of estimated sales tax revenues was targeted to transfer out of the general fund to the healthcare fund. Erchinger explained that budget to actual figures were not yet available; transfers were done on a cash basis, and because the city used accrual accounting, budgeted amounts sometimes were reported in a different time period from the when the cash came in. Erchinger further explained that the remaining three-quarters of the excess sales tax revenue would go into the undesignated reserves account in the general fund. Motion Passed Unanimous 51 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Resolution 2018-008, Authorizing The Seward Public Utilities To Allow A Delay Of Up To Six Months In The Effective Date Of The Water And Sewer Tariffs To Correct The Classification For Some Customers Incorrectly Billed Metered Water And Sewer Rates Rather Than Standard Monthly Rates. Motion (Keil/Casagranda) Approve Resolution 2018-008 Erchinger said this resolution was in response to a billing error where these customers were previously misclassified in the billing system, and was neither arate increase nor a tariff error; these customers were originally set up in the system at a metered water rate, but were not actually in a classification that allowed a metered water rate, and so had been essentially been underbilled. The concern was that the impact of correcting this classification error all at once would be sticker shock for the customers, many of whom owned duplexes or four-plexes, and so the city wanted to grant the customers this extra time to allow them to pass along the cost adjustment to their tenants. Erchinger added that, because this was an error made by the city, administration thought it was fair to allow these customers six months to make their adjustments with their tenants; these customers were almost all General Service customers. In response to Squires, Long confirmed there would be no back billing, and the six months classification. Motion Passed Unanimous Other New Business Items Non-objection to the renewal of the following liquor licenses: #5288 Brewpub Seasonal for Seward Brewing Company and #5287 Restaurant/Eating Place Public Convenience for Seward Brewing Company. Motion (Casagranda/Towsley) Approve the Non-Objection to the Liquor License Renewals #5288 Brewpub Seasonal for Seward Brewing Company and #5287 Restaurant/Eating Place Public Convenience for Seward Brewing Company. Slater declared a potential conflict of interest because he was the owner of the Seward Brewing Company. Squires ruled that a conflict existed and excused Slater from the dais. Motion Passed Unanimous Slater returned to the dais. Non-objection to the renewal of the following liquor license: #4617 Beverage Dispensary for Chinooks Waterfront. 52 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Motion (Casagranda/Keil) Approve the Non-Objection to the Liquor License Renewal #4617 Beverage Dispensary for Chinooks Waterfront. Slater declared a potential conflict of interest because he was co-owner of Chinooks Waterfront. Squires ruled that a conflict existed and excused Slater from the dais. Motion Passed Unanimous Slater returned to the dais. Discuss Travel Authorization Reports (pre-travel) and Travel & Expense Reports (post- travel). Motion to Postpone (Keil/McClure) Postpone this discussion item to the February 12, 2018 meeting. Motion to Postpone Approved Yes: McClure, Keil, Horn, Slater, Squires No: Towsley, Casagranda Casagranda requested that additional information be provided about the purpose of this discussion item in the next agenda packet. Towsley recalled that this discussion item had been on councils last agenda, and that Squires had requested it come again at this meeting in order to have a full council present for the discussion. Discuss sending one or more council members to electric utility training. Electric Utility Manager John Foutz said there was training being offered by Northwest Public Power Association (NWPPA) for utility board members, and Foutz thought it would be now if the electric budget could be used for sending council members to this training or not; Long said this was not a budgeted item for electric, and Keil said she would prefer that the travel expense come from the et. Casagranda and Towsley both expressed interest in attending. Squires offered to work with Erchinger to review budget possibilities, and would bring back his findings to council; there was no objection from council. Discuss City Projects and Goals. Motion to Postpone (Keil/McClure) Postpone this discussion item to the February 12, 2018 meeting. Motion to Postpone Approved Unanimous Consent 53 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Discuss the annual audit with BDO. Casagranda wanted assurance that the audit contract was going back out as a Request For Proposal (RFP). She was concerned that council had not seen anything come forward. Erchinger said she believed the audit contract could be extended for two additional years at the discretion of the city manager, and that the contract had already been committed to extension for the next two years, to include audits for the years 2017 and 2018. Casagranda requested that administration review the original contract and resolution. She ended by council at the time to there was a discrepancy found between the meeting minutes and the resolution in which the minutes reflected the amendment made by council to the contract, but the resolution had not been updated to reflect the amendment. Schedule a work session to review the employee grievance procedure. Council scheduled a work session on Tuesday, February 13, 2018 at 5:30 p.m. to discuss the Employee Grievance Procedure. INFORMATIONAL ITEMS AND REPORTS November, 2017 Financial Reports for the City of Seward. City Clerk Email Adopting Lettering System for City of Seward Ballot Propositions and Questions. COUNCIL COMMENTS Keil said, in response to concerns about employee turnover, she had asked Erchinger to provide a report for regular employee departures, and she presented this report as a laydown for council. Keil reviewed the report, and clarified that it did not include temporary employees. Fifteen employees had turned over in 2017: 1 failed probation, 1 resigned during probation, 3 retired, 3 Casagranda thanked Cliff Krug for his grass roots effort in promoting Seward business. She congratulated Sue McClure and Jean Bardarson for receiving awards at the Chamber of Commerce awards banquet, as well as Mike Ritz, Jason Bickling, Shelly Shank, and Elliot Jackson. McClure thanked the citizens for coming tonight. Last year McClure had sponsored a resolution to keep the National Ocean Sciences Bowl (NOSB) in Seward; she encouraged volunteers to sign up for the NOSB Tsunami Bowl on February 9-11, 2018. Slater thanked everyone for speaking at the meeting tonight; it took guts to stand up and speak, and he admired everyone for doing it. 54 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Towsley also wanted to thank everyone for speaking tonight. She said when she ran for council last year, she had no illusions that it would be easy to serve, and that had already been evident in her short three months on council. Towsley wanted to apologize to the citizens who came expecting the special meeting tonight; had she had the information that she had been requesting, respectfully and through council, she would have known the city manager would not be in the office . She was disappointed in the presiding officer for allowing a citizen to target her directly with comments tonight; she did not feel protected. Towsley understood that there was a lot of work to do, and that there would be some uncomfortable things to deal with, but she believed that the community, as well as the employees of the city, would benefit in the long run. Horn thanked everyone for speaking; special thanks to Cliff Krug for breaking the tension. He appreciated people coming out tonight. He was not here to take sides, but wanted to do what was best for the community. Squires congratulated all the award winners at the chamber banquet. He had received an email from Building Inspector Stefan Nilsson stating that public law 115-97 was passed which would incentivize the installation of sprinkler systems in commercial and residential buildings, including the potential for rebates for the costs. Squires apologized to Towsley for not reacting quicker . He also wished to have training by the city attorney on the Open Meetings Act (OMA). Long said the city manager provided notice to the council that he was extending his leave approximately 1 ½ hours prior to the special meeting notice going out last Friday. CITIZEN COMMENTS Darryl Schaefermeyer said regarding PACAB priorities and the crane, he reminded council that PACAB spent a good amount of time on this issue, and had recommended installing an 8 ton crane in the boat harbor to council several years ago. That recommendation still stood today; there was no further action for PACAB to take because the recommendation lay with council. On a different topic, Schaefermeyer said, having spent time as a city manager in Seward himself, he felt some personal angst in calling a special meeting to fire the city manager today;he thought it was unfair to the city manager, to the body, and to the people of Seward. H members of council, and appreciated the work of council. Matt Chasesaid there was a 10 ton crane going in across the bay. Kris Erchinger said there were times when city employees needed to be heard, and not everyone took that opportunity. The environment that administration and the department heads have been living under for the past two months has been unbearable. Erchinger said there had been a of them may have legitimate claims. But Erchinger believed that the majority of bullying has been coming from members of City Council, particularly one who was a former employee who Erchinger believed had a personal vendetta against herself and the city manager; she felt that that was what had been going on for the last two months. Public records requests had been coming inthatErchinger 55 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page thought were fishing expeditions have any proof, or even specific allegations the allegations alone were the point because allegations took on a life of their own. She said administration had brought in $90 million to the city from state and federal grants. Although she had had difficulties working with the city manager in the past, she felt like they had worked them out. Erchinger said the problem she had was with sitting council members colluding with city employees in order to file claims against department heads that they were trying to get rid of. Erchinger thought there was a concerted effort by members of council to bully employees, and personal agendas were clear if you watched social media. Erchinger said it was hard for her to breech her own standards and air dirty laundry in this setting, but she believed there were people with personal vendettas who would not rest until certain people had been fired, including herself. Every day on social media she read about council members colluding with city employees to file false grievances against her to get her fired. She said the good She urged council to please protect all the city employees, because they were all valuable. Rebekah Ivy had been a city employee for over eight years, and was a third generation Sewardite. She had been recently asked what it would take for her to feel comfortable to tell her story, and what it was like to be employed at the city. uestion, She believed if the city hired a third party to do an internal audit, there would be a chance for both sides of the story to be told, not just one side or the other, and potentially make changes based on factual information; this would eliminate bias from inside the city, as well as from council. Ivy said there the most valuable asset, she believed that hiring an outside source to help would be the best answer. She was very thankful that council was listening to the employees and having meetings to discuss the issues. Patrick Messmer agreed that there should be an outside auditor hired. He also agreed that there were two sides to every story, and in order to get the whole story, there needed to be an impartial party involved. In his work environment, Messmer felt he and others were always walking on eggshells. He had no ill will towards anyone, but something needed to be done. Stephanie Wright said she originally came tonight to speak up about her experience of being retaliated against following her employment with the city, and thought it was clear that there were others with similar experiences. She wished council would do more with the anonymous employee information that was collected. Wright believed many people feared retaliation, and many people had already had to deal with it. She agreed that having a third party involved in the process would yield a better outcome. She hoped the work would continue to make this a honest, fair, and enjoyable place to work. Joe Tougaswas a citizen of Seward and a local business owner. As a community member and business owner, in his experience the city administration d done a great job with supporting community and economic development. Brittany Paquette passed out the Teen Rec Room (TRR) guidelines. Paquette had high standards and boundaries for the youth at the TRR; she had self-respect and wanted to demonstrate respect and integrity as a role model for the teens. She would remain steadfast in her mission to serve the youth at the TRR. 56 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Kelley Laneheard administration say that their workplace had come under attack and that their workplace had become extremely hostile, and she had one question: who still had their job? Lane said when she went to the personnel office to ask about her work status, she had been told that her matter was no longer about personnel, but had become a legal matter; she thought that strange, so she went to her supervisor to ask about her employment status and was told the same thing, that this was no longer a personnel matter, it was a legal matter. Lane said she did not understand why her employment had become a legal matter. In her observation, she thought that many employees were often told to get a lawyer. Lane thought a critical litmus test to remember when considering if someone was being bullied or harassed was to ask who had the power in the relationship, who had the money, and who still had their job. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Keilsaid in recent days, she had received 37 phone calls in support of administration, four phone calls against administration, and four emails against administration. In her opinion, that demonstrated overwhelming support of the administration. Towsley reminded everyone of the Polar Bear Jump coming this weekend. Towsley said, before she was ever on City Council, she had gone before council and expressed her concerns about what was going on in city hall. She thought it was unfair to characterize how she left employment at city hall as saying she was going after anybody; she had gone before council repeatedly with her concerns because that was what individual members of council had asked her to do at the time. She said nothing really changed. As the conversations continued over time, she heard people saying that council needed to change, so she ran for council. She ran for council, she was elected, and she deserved just as much respect as any other elected official at the dais. Towsley added that any information provided to some of council, should be provided to all of council. She strongly objected to the characterization that she was out to get anybody; she was, however, out to make sure that the employees were protected and had a work environment that was safe. Towsley added that, when an t was under question, yet people were being told that entity was unquestionable, that was an issue. This was a fundamental reason why she ran for council, and she deserved the same respect as any other member of council. Casagranda said she was sorry for the special meetings that were scheduled and then cancelled. She said it was not easy to sit at the dais, and had she been given the information about the , she would not have scheduled a special meeting for today. Last Friday, when Casagranda scheduled the special meeting, her information was that the city manager would be returning to work on January 21, 2018, which meant he would have been in attendance tonight at this meeting. Yesterday, on Sunday, Casagranda n calendar had been updated to reflect his extended absence; council had been asking the city manager for months to update the calendar with his information and this was the first time it had been done. Casagranda apologized to the public for anyone who was stressed out or felt their time was wasted by this recent chain of events, and reminded everyone that she had a life, too, and it was not easy for her either; it had been very stressful for her as well. She looked forward to everybody coming together and working together, but felt it was definitely time to take action and make some changes. Casagranda encouraged all of the 37 people that Keil mentioned to contact her so she could get a different perspective; she wanted to see the whole picture. 57 City of Seward, Alaska City Council Minutes January 22, 2018 Volume 39, Page Long said when council set forth the idea of having a work session to review the grievance procedure, administration inadvertent result of pitting the officers of the city against each other in a way that was non- productive, or actually destructive. Long said that idea had been dismissed out of hand. Long added an obligation to treat that as meaning legal representation, and had to respond accordingly. Long said at 2:30 p.m. on Friday, the administrative assistant for the city manager emailed and called the city EXECUTIVE SESSION Motion (Keil/McClure) Go into executive session to evaluate the City Attorney. The City Attorney was invited to attend. Motion Passed Unanimous Council went into Executive Session at 10:00 p.m. Council came out of Executive Session at 10:29 p.m. Council recessed the meeting until Tuesday, January 23, 2018 at 4:30 p.m. ****************************************************************************** Council resumed the meeting on Tuesday, January 23, 2018 at 4:32 p.m. Council recessed the meeting at 4:34 p.m. for a brief intermission. Council resumed the meeting at 4:40 p.m. Council went into Executive Session at 4:41 p.m. The City Attorney was invited to attend. Council came out of Executive Session at 5:22 p.m. Council directed the city clerk to add an executive session to the February 12, 2018 meeting to ADJOURNMENT The meeting was adjourned at 5:25p.m. 58 59 AGENDA STATEMENT Meeting Date:February 12, 2018 From: Brenda Ballou,City Clerk Agenda Item:Liquor LicenseRenewal BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the request for a liquor license renewal forthe following business: Seward Marketplace Package Store License #3909 The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license renewal for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor licenserenewals, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non-objection to the liquor license renewal for Seward Marketplace,License #3909,Package Store. 60 61 62 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE th 550 West 7 Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 January 17, 2018 City of Seward Attn: Brenda Ballou & Johanna Kinney, City Clerks VIA Email: bballou@cityofseward.net clerk@cityofseward.net Cc: joanne@borough.kenai.ak.us jblankenship@borough.kenai.ak.us kring@borough.kenai.ak.us Re: Notice of 2018/2019 Liquor License Renewal Application License Type: Package Store License Number: 3909 Licensee: AK, Inc. Doing Business As: Seward Marketplace We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov 63 64 65 66 67 68 69 AGENDA STATEMENT Meeting Date:February 12, 2018 From: Brenda Ballou,City Clerk Agenda Item: Liquor LicenseRenewal BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the request for a liquor license renewal forthe following business: Gateway Liquor & Food Mart Package Store License #2683 The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license renewal for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor licenserenewals, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Non-objection to the liquor license renewal for Gateway Liquor & Food Mart,License #2683, Package Store. 70 71 Office of the Borough Clerk Office of the Borough Clerk 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Johni Blankenship, MMC Borough Clerk 1/22/2018 Sarah Daulton-Oates Records & Licensing Supervisor Alcohol & Marijuana Control Office th 550 W 7 Ave, Ste. 1600 Anchorage, Alaska 99501-3567 RE: Non-Objection of License Renewal Application Business Name : Gateway Liquor & Food Mart License Type : Package Store License Location : 1400 B Third Ave, City of Seward License No. : 2683 Dear Ms. Oates, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection to this License Renewal application. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/klr Encl. cc: Applicant City of Seward KPB Finance Department File 72 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE th Avenue, Suite 1600 550 West 7 Anchorage, AK 99501 Main: 907.269.0350 January 16, 2018 City of Seward Attn: Brenda Ballou & Johanna Kinney, City Clerks VIA Email: bballou@cityofseward.net clerk@cityofseward.net Cc: joanne@borough.kenai.ak.us jblankenship@borough.kenai.ak.us kring@borough.kenai.ak.us Re: Notice of 2018/2019 Liquor License Renewal Application License Type: Package Store License Number: 2683 Licensee: Harbor Gateway Inc Doing Business As: Gateway Liquor & Food Mart We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov 73 74 75 76 77 78 79 80 MEMORANDUM TO: City Council FROM: Brenda Ballou, City Clerk DATE: February 12, 2018 RE: City projects and goals - REVISED The following list of City Council projects and goals was reviewedand discussed at the March 20, 2017 City Council Work Session, and revised asfollows: 1 1.New ADA accessible parking location on west side of City Hall construction underway as of 6/2017 1 2.Set location for Satellite Fire Station and Public Works Building 3.Expand current Council Chambers 4 4.Discussion on Air Force Rec Camp Site - work session held 9/25/2017, public input requested 5.Harbor crane 6.Saltwater Heat Pump Project 7.Energy Efficiency of City Hall 8.Ground Transportation for Ambulance Services 4 9.Animal Shelter Improvements council passed a resolution 2/13/2017 4 10.City Hall Elevator council passed a resolution 6/24/2017 modernized July 21, 2017 3 11.Research elected/appointed official tele-conferencing possibilities for meetings 3 12.Refine Executive Session Procedures work session held on May 8, 2017, Clerk prepared memo in May 22, 2017 packet 13.Update the KPB Tsunami Warning message to include specific reference to the local radio station (91.7/106.1) 4 14.Incentivize family entertainment-type businesses to come to Seward 1 15.Affordable Housing (including Summer Worker Housing) work sessions held May 22, 2017, June 12, 2017, July 11, 2017 16.Develop South Harbor Uplands council supported PACAB recommendations, set building height limit 17.Seward Community Health Center Expansion 2 18.Building Maintenance 2 19.LED Light Conversions 1 Potential Work Session 2 Address as a budget consideration 3 Awaiting City Attorney input - #11 will be scratched unless City Attorney advises differently 4 Currently underway 81 82 83 84 85 86 Discuss Travel Authorization Reports (pre-travel) and Travel & Expense Reports (post-travel). February 12, 2018 Clerk’s Note: This discussion item appeared on the January 8 and 22, 2018 City Council agendas. At both meetings this itemwas requested to be brought forward again on the next meeting agenda. At the January 22, 2018, there was also a request made that “additional information be provided about the purpose of this discussion item in the next agenda packet.” Following is a history of this topic, as excerpted from City Council meeting minutes: 1.Excerpt from January 8, 2018 City Council Meeting Minutes (Approved) Discuss Travel Authorization Reports (pre-travel) and Travel & Expense Reports (post-travel). Towsley wished to see greater transparency in travel dates and expense reporting from the city manager. Squires agreed that council should be able to review the travel budget, and added that the city manager usually notified the mayor of his travel and absence plans. Towsley wasconcerned that reasonable questions were being met by resistance by administration, and on behalf of her constituents, she wished to see more accountability. Slater thought more information was good. Horn thought that just because money was budgeted didn’t mean it needed to be spent. Long said the forms included in the packet were for employees; the city manager was a contract employee and, unless specified in his contract, the forms were not required. Squires wished to bring this issue again when there was a full council, and suggested that perhaps a work session would be in order. Squires requested that this discussion item appear again on the January 22, 2018 agenda. 2.Excerpt from December 11, 2017 City Council Meeting Minutes (Approved) COUNCIL COMMENTS Towsley… wanted to understand what direction council could give to administration to satisfy the travel expense report question; Squires responded that the city manager has not been required to complete a travel expense report in the past, but would be starting in January, 2018. Towsley clarified that she wanted to see the city manager’s travel expense reports after travel was completed, and Squires said she could file a public records request for that information. 3.Excerpt from November 27, 2017 City Council Meeting Minutes (Approved) City Manager Report Casagranda requested that all council and administration provide travel reports which include the total cost for the travel; also, all travel posted in the shared council/administration calendar, and travel reports be included in agenda packets going forward. Squires agreed that the travel reports should be provided in writing to the City Clerk. Specifically, Casagranda requested to see travel reports from the City Manager for March 22-25, 2017, October 10-13, 2017 in Maine, October 19- 25, 2017 in San Antonio, and November 12-17, 2017 in Anchorage for AML. Squires clarified that sometimes travel was paid for or reimbursed by another entity, and Casagranda said she did not wish to see reports for travel if paid for by another entity. Hunt pointed out that Casagranda’s request exactly coincided with a public records request that was recently submitted by a citizen. Hunt said he could not provide that information to the 87 citizen because that would be compiling records. Hunt added that he had professional obligations that required him to travel and attend various meetings, and his attendance at these events yielded valuable information for him, both personally and professionally. In response to Long, Casagranda said she wished to see the Travel Authorization Forms, which pre-authorized travel, ahead of time in the event that a member of council felt they could also benefit from attending the event. All council members wererequired to complete a Travel Authorization Form, and so Casagranda felt that her request was not singling anyone out; she added that her request for the City Manager’s travel reports did, in fact, coincide with the citizen’s request because all of council had received the same email. Keil was concerned about council micromanaging administration’s travel budget, and thought that a written travel report included in the packet would be sufficient. Towsley felt there was nothing wrong with citizens askingwhere their public dollars were being spent, and was becoming concerned with the defensive posture of providing this information. In response to Towsley, Hunt said the records request had asked for detailed, confidential information; he would not release information about his personal time. Hunt added that, in addition, the request had asked for the compilation of records, and he was not required to do that. Hunt said it was one thing to produce a record that already existed, and another to go into a system and create something in response to a request. Squires requested that beginning in January, 2018, any planned travel for council and administration (not department heads) would require, prior to travel taking place: a Travel Authorization Form to be completed, dates of travel noted on the council/administration shared calendar, and an email sent to council informing them of upcoming travel plans. 4.Excerpt from November 27, 2017 City Council Meeting Minutes (Approved) COUNCIL COMMENTS Squires … requested that all council members sign their own Travel Authorization Forms prior to travel, as well as their travel expense reports after travel was completed. 5.Excerpt from October 26, 2017 City Council Special Meeting Minutes 12:00 p.m. (Approved) COUNCIL COMMENTS Squiressaid that during the course of this contract negotiation process, he had learned that council was required to follow the same rules for travel as the clerk, and as such, he wanted to make sure that a city vehicle was requested on the Travel Authorization Voucher prior to traveling; if a city vehicle was not available, then a private vehicle could be used for official business. In response to Towsley, Squires said it was up to the City Manager to determine if there was a city vehicle available and safe to drive outside of city limits. In response to Casagranda, Squires clarified that the City Clerk did not report to the City Manager, but was required to submit a Travel Authorization Voucher in advance of traveling for the purpose of ensuring that anticipatedexpenses were within budget. 88 89 90 91 92 MEMORANDUM Meeting Date: February 12, 2018 From: Brenda Ballou,City Clerk Agenda Item: Notice of Applicationfor Retail Marijuana Establishment BACKGROUND & JUSTIFICATION: The Alcohol & Marijuana Control Office (AMCO), per AAC 306.025(b)(3), requiresthat as soon as practical after initiating a marijuana establishment license application, an applicant must give notice of the application to the public by submitting a copy of the application to the local government and any community council in the area of the proposed licensed premises.On January 25, 2018, the City Clerk’s office received a Public Notice of Application for Marijuana EstablishmentLicense for the following: License #: 16390 License Type: Retail Marijuana Store Licensee: The Tufted Puffin, LLC Business Name: The Tufted Puffin Business Location: 1401 Fourth Avenue, Suite C RECOMMENDATION: This documentation is for informational purposes only and to serve as public notice. No council action is necessary at this time. 93 94 95 96 97 98 99