HomeMy WebLinkAbout03122018 City Council Minutes City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 381
CALL TO ORDER
The March 12,2018 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
Jim Hunt, City Manager
Brenda Ballou, City Clerk
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Carl Norman said his light bill had increased 35%over last year's bill for the same billing
period and exactly the same kilowatt hours. He understood that the city was looking into the
problem,but said council had a fiduciary responsibility,and that would extend to personal liability if
this situation wasn't handled well. His observation was that people were leaving town because of the
high cost of utilities.
Carolyn Roemer said she came to council one month ago to speak about the electric rate;
two weeks ago she wrote to administration and had not received a response yet. She didn't
understand how she could have a 35%increase.Council Member Casagranda had spent many hours
with Roemer trying to help her understand the rate structure. Roemer wished council would take a
look at how rate changes were handled, and how citizens could be provided fair notice. She
suggested an oversight committee be established for the electric utility department.
Melody Jordan said,although she resided outside of the city limits,she considered herself a
Seward resident.Within the last week,as Jordan had been made aware of the sewer and water tariff,
she spent time with Finance Director Kris Erchinger to understand what was happening.Referring to
a laydown she provided, Jordan said there would be an actual 33% increase in her daughter's
business. The tariff was not simple to understand; she had tried to look back from 2005 to compare
historical rates.
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 382
Carol Griswold said she supported the request for a work session on the 2018/2019 budget
because the budget that council voted on was incomplete; several items related to pay rates and
position classifications were not available until February, 2018. She recalled that the 2016/2017
budget had included a wrap-up session,and Griswold wished council would have a similar session
for this current budget. She thanked the Electric Department for keeping the power on during the
recent snowstorm, and Public Works Department for clearing the roads.
Val Boulden lived outside of city,but was very concerned with electric rates. Her son had
recently purchased a house inside the city limits,and he was not living in it,but was remodeling it;
his electric bill was $642.
Tara Riemer said she wished to speak about the sewer tariff,and the impact of that on the
Alaska SeaLife Center(ASLC).The ASLC was moved from Class C to Class D in the new tariff;the
use of city water was incidental to its operations because they used salt water for their operations,so
she didn't understand why they were reclassified because the use of fresh water was incidental to
their purpose.The change in rate structure in resolution 2017-077 was presented as a"housekeeping"
issue, but in actuality it had a huge impact on customers; in their case, the bill for ASLC went up
65%on the last bill. Instead of delaying the effect date of this tariff,Riemer requested that council
rescind the tariffs until they could be fixed.
Melody Jordan echoed Riemer's sentiments and requested council rescind Resolution 2017-
077 and Resolution 2017-078. Jordan had spoken with many business owners in town,and no one
understood how to read it.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda
McClure added an Executive Session to discuss the strategy for negotiating the city manager
contract.
Towsley added an item to Other New Business to discuss scheduling a special meeting to consider
rescinding Resolution 2017-077 and Resolution 2017-078.
Towsley added an item to Other New Business to discuss the DMV.
Casagranda added an item to Other New Business to schedule a work session to understand the new
2018 electric tariff and bills.
Squires added a proclamation for Seward's Day under Special Orders,Presentations And Reports.
Motion Passed Unanimous
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 383
The clerk read the following approved consent agenda items:
Non-objection to the liquor license renewal for Alaska Seafood Grill #3021 —
Restaurant/Eating Place.
SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Proclamations & Awards
Wolfgang Kurtz
Trevan Walker
Seward's Day
Borough Assembly Report.Kenn Carpenter said the assembly had a long meeting last
Tuesday,much of it devoted to school budget issues.The assembly voted down the proposed bed
tax increase, but was considering a sales tax increase from 3.0% to 3.5% for the schools there
would be a public hearing on that proposal on April 3,2018.There was also proposal of a ten cent
per gallon gasoline sales tax increase that would go directly to the schools. Carpenter encouraged
people to express their opinions to the assembly about those tax issues. Kim Leslie from Seward
High School had been awarded Teacher of the Year by her union.He had recently taken a tour of
some of the roads that were of concern,including Lowell Point Road.The borough mayor wanted
to take $3 million from the $8 million land trust fund to pay off the borough deficit. Carpenter
encouraged citizens to contact him about any borough issues;his email was kcarpenter@kpb.us.
In response to Squires, Carpenter said 78%of the borough's budget was for the schools.
The school district reported to the borough that 56% of the students attending could not afford
meals, and so the schools were providing breakfasts and lunches.
City Manager's Report.Jim Hunt stated the following purchase orders between$10,000
and$50,000 had been approved by the city manager since the last meeting: $20,330 to Acme Fence
for a Little League backstop; $2,350 to Ingraham Books for the library.
Providence Seward Medical & Care Center had received a new CT scanner, and it was
already up and running.
A Request for Proposals (RFP) had been released for 2018/2019 Seasonal Transportation
which had the following scoring criteria:
Age, Condition, Quality&Appearance of the Coaches 20%
Customer Service 20%
Safety Record 20%
Seating Capacity&ADA Compliance 10%
Cost 30%
100%
Administration was currently reviewing some animal shelter design plans.The drainage issue
that had been previously reported at the shelter had been repaired.
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 384
Electric Utility Manager John Foutz followed up on Chugach Electric's proposed purchase
of ML&P,and said Chugach would be in Seward to make a presentation to council at the March 27,
2018 meeting.
Hunt said tsunami inundation maps would soon be posted in the hallway at city hall for
public viewing.
In response to Squires, Fire Chief Eddie Athey provided a_brief synopsis of the tsunami
debrief and tabletop exercise. One gap identified was that the Fire Department could communicate
better with the radio station. In response to McClure,Athey said the Fire Department was working
on a list of phone numbers and website resources for the radio to use as reference. In response to
Squires,the response from the departments during the tsunami warning event could be improved.
Regarding the tabletop exercise,Athey said the scenario entailed a severe winter storm;department
involvement was well attended and very effective.
Finance Director Kris Erchinger said regarding the tariff changes,the titles of the original
resolutions were not intentionally misleading; council was not responsible for the impact of those
tariff changes.The new structural changes had been tested for rate change impacts,and they did not
uncover any issues of concern.The Finance Department had taken a random sampling of customers
in each class and did not identify any major issues. In her opinion,the 2.1%rate increases were not
the heartburn,but instead the class changes were what had the greatest impact;customers who were
eligible for metered rates versus unmetered rates.There was a difference between small business and
large business;historically,some customers being moved to large commercial,would suffer a 33%
increase.Erchinger had not anticipated the impact on the ASLC,and had not yet identified the reason
for it. ErOhinger had an all-new billing staff, and was currently the only person in her department
who understood the computer system and could explain what the issues were.
Regarding the electric bill,Erchinger said two years ago the city hired a consultant to study
electric rates;the recommendation was to provide seasonal rates to provide relief to the year-round
residents. The first year of the seasonal rates, the consultant recommended a 25% increase in the
summer,and 25%decrease in the winter;the intention was to decrease people's overall utility bill by
25%. Chugach Electric charges the city approximately$350,000 per month for fuel surcharge;that
cost was spread across all kilowatt hours.When the city lost two large users,the impact was that the
fuel surcharge was spread across kilowatt hours to a larger effect. Erchinger was actively pursuing
the identification of errors in the electric bills. Erchinger would like to address having a major
overhaul of all the tariffs.
Regarding the 2018/2019 budget, Erchinger said none of the pay rates and position
classifications changed in this budget; there had been no change to them from the previous budget.
Regarding social media, Erchinger wished to address comments made about the city's
employee wellness program.The program started in 2008 in response to an insurance rate increase of
$50 each employee.Employees who participated in the wellness program had the opportunity to earn
rewards, and the program has been helpful in promoting wellness.
Erchinger wished to address COLA, merit and progressive increases for the 2018/2019
budget:the COLA stayed out of the budget,merit and progressive increases were included,and five
employees'jobs were saved.Further,Erchinger added that the Wage Committee was convened only
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 385
when a department head proposed making a major change to a job description that would potentially
impact the pay rate associated with that position.
Other Reports,Announcements and Presentations —None
PUBLIC HEARINGS—None
UNFINISHED BUSINESS—None
NEW BUSINESS
Resolution 2018-019,Designating KIBH-91.7 FM,Seward As An Adjunct First Responder
Entity And The Official Broadcast Channel For Emergency Information And Related
Activations And Alerts.
Motion(Keil/Casagranda) Approve Resolution 2018-019
McClure said this resolution would make the radio station more formally recognized as
Seward's radio station. In response to Casagranda, McClure confirmed that this resolution was
intended only to recognize the radio station and would not encumber the city for any future financial
obligations. Squires hoped this resolution would assist the radio station to obtain grant funding.
Motion Passed Unanimous
Other New Business Items
Schedule a work session to review year end budget.
Following some discussion,the consensus of council was to schedule this work session on the day
after the conclusion of the audit, which was estimated to be late May,2018 or early June,2018.
Discuss having a special meeting to consider rescinding Resolution 2017-077 and Resolution
2017-078.
Council proposed having a special meeting on Tuesday, March 20, 2018 at 5:30 p.m. Council
Members Casagranda and Towsley would sign the request.
Discuss the DMV.
Towsley wanted to inform the public that road testing was currently not available in Seward due to
unforeseen events with staff. Keil added that the DMV back up person would be getting trained on
road testing on April 17-19, 2018, and following that road testing in Seward could resume.
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 386
Schedule a work session to understand the new 2018 electric tariff and bills.
Council scheduled a work session on Tuesday, March 20,2018 immediately following the special
meeting with the topic: Understanding the new 2018 Electric tariff and bills.
INFORMATIONAL ITEMS AND REPORTS
Clerk's Report on Public Records Requests for February, 2018.
City Projects and Goals.
COUNCIL COMMENTS
Horn wished to follow up on the social media discussion;he thought social media could be
explosive platform, but could also be a great venue for a free trade of ideas. Horn thought Patrick
Messmer did a good job monitoring his threads.
Slater congratulated Wolfgang Kurtz and Trevan Walker for receiving proclamations. He
thanked everyone for speaking out tonight, and also thanked the city for clearing the roads so well.
Casagranda said thanked everyone for speaking out tonight. She requested that council be
provided the resolution that established the employee wellness program.
McClure said thanked everyone for coming; she hoped people could see that council was
working hard. She thanked Erchinger for the thorough explanations tonight. McClure thought that
snow brought out the good in people, as she often witnessed people helping people to clear their
snow.
Towsley thanked everyone for reaching out to her about their concerns, and for coming to
speak tonight. She thanked Erchinger for her explanations tonight. Towsley echoed Horn's
comments about social media; she thought this town was connected through Facebook, and agreed
that it could be helpful or ugly. She hoped people would use it constructively.
Squires thanked Casagranda and Erchinger for the three hour meeting to discuss the budget
and electric bills;he thought that if Erchinger and Casagranda worked together on preparing for the
work session, the public would learn a lot. He congratulated Wolfgang Kurtz and Trevan Walker.
Squires encouraged everyone to prepare themselves and their families for a disaster; the rule of
thumb was to plan to be self-sufficient for 72 hours. Squires informed council that he had asked the
Seward Community Health Center(SCHC)if they would be interested in partnering on sending Jean
Bardarson to Washington DC;the SCHC would pay half the cost,and he would pay the other half.
CITIZEN COMMENTS
Patrick Messmer spoke about social media, saying he apologized if he hurt anyone's
feelings. Professional disagreements didn't mean that he had any bad personal feelings towards
anyone.
Melody Jordan said she appreciated the special meeting to rescind the resolutions.
Regarding social media, she had looked at the Seward Citizens Forum on Facebook and thought it
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 387
could be a good thing as long as it didn't get personal. She thought perhaps comments could be
reviewed by the city and taken as constructive comments.
Tara Riemer said, as a private citizen,her blood pressure was through the roof right now.
She had been considering thoughtfully about what she was going to say to council tonight; she had
been cautioned by many people to not speak up for fear of retaliation.In her view,there was a lack of
trust in the city due to lack of transparency. Perceived retaliation could be as damaging as real
retaliation,just like a perceived conflict of interest could be as damaging as a real conflict of interest.
A lack of trust meant that people assumed poor intent, and no one gave anyone the benefit of the
doubt.The community was asking for transparency as demonstrated through public records requests;
reports are made about those requests,the perception was retaliation,and trust was eroded—it was a
vicious cycle. Riemer suggested a few things that might help improve the situation: assume good
intent; start being more transparent; and, ask for help from a consultant because the entire
community was impacted by the situation,not just employees.
Lynda Paquette appreciated Tara Riemer's message.She reported that the sewage lagoon at
Lowell Point had been stinking lately.Referencing an ML Foster report from 2012,Paquette said the
report stated that that sewage lagoon was not large enough for the expected capacity; she requested
that council review three reports that had been issued by ML Foster to refresh themselves on the
recommendations for maintenance.
Carol Griswold said the annual evaluation of the city manager in an open meeting was both
enlightening and discouraging; the goals should be"SMART"—specific, measurable, achievable,
results-focused,and time-bound.Griswold considered the city manager's self-evaluation ratings to
be unrealistic, as they were almost perfect. She thought there was much room for improvement.
Brad Snowden wished to discuss the airport, and said he had asked Representative Don
Young about how he could help. Also,regarding his concept of a new cruise ship dock, Snowden
said the project would not cost the city any money, only their support.
Kris Erchinger wished to speak as a citizen,and expressed her condolences to Nanci Richey
who recently lost a member of her family.She was proud to work for the city,and thought there was
a great staff at the city; she thought that people jumping to assuming that people were disgruntled
was not always fair.In her time,she had worked for a lot of city managers,and she was proud of City
Manager Hunt. Erchinger was committed to making the city a better place; she felt that deliberate
animosity only tore down our little town and that was sad.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Hunt said the Planning & Zoning Commission joint work session with the Seward Bear
Creek Flood Service Area Board had been planned for some time, and he wanted to be sure that
people were made aware of the new change in location.Also,related to his self-evaluation,Hunt said
he completed the paperwork that he had been furnished.
Towsley said she thought exit interviews would be an important tool for understanding
people's reasons for leaving employment with the city.She also wanted to confirm that there would
be a resolution regarding the union on the March 27, 2018 council agenda.
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 388
Keil reminded everyone that on March 19,2018 there would be a work session to discuss the
animal shelter, bike park, ice rink, and the potential for outsourcing some Parks & Recreation
functions.
Casagranda requested there be an update at the next council meeting from administration
regarding the state of the Lowell Point Sewage Lagoon; she had noticed lately that the lift station
nearest the waterfall had been smelly.
Squires thanked Patrick Messmer and Kris Erchinger for their comments.Squires concurred
with the request to have a sewage lagoon update from administration. He also committed to look
into the 2012 ML Foster report and share it with council.
Council recessed at 9:43 p.m.
Council resumed at 9:49 p.m.
EXECUTIVE SESSION
Motion (Keil/McClure) Go into executive session to discuss
threatened litigation.
Council invited the city attorney to attend via telephone.
Motion Passed Unanimous
Council went into Executive Session at 9:50 p.m.
Council came out of Executive Session at 10:29 p.m.
Council recessed to Friday, March 16,2018 at 12:00 p.m.
*******************: *************************************************************
Council resumed on Friday, March 16 at 12:00 p.m.
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
Brenda Ballou, City Clerk
Absent—None
Motion (Towsley/Casagranda) Send Jean Bardarson to Washington, DC
in the interest of the Seward Community
City of Seward,Alaska City Council Minutes
March 12,2018 Volume 39,Page 389
Health Center, paying up to $1,500 in
travel expenses from the council's budget.
Motion Approved Yes: McClure, Slater,Keil,Squires
No: Casagranda, Towsley
Abstain: Horn
Motion (McClure/Keil) Go into executive session to discuss strategy
for negotiating the city manager contract.
Motion Passed Unanimous Consent
Council went into Executive Session at 12:10 p.m.
Council came out of Executive Session at 12:57 p.m.
ADJOURNMENT
The meeting wasas /
adjourned at 12:58 p.m.
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Brenda J. Ballo "MC David Squires
City Clerk Mayor
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