HomeMy WebLinkAbout06102019 City Council Minutes City of Seward,Alaska City Council Minutes
June 10, 2019 Volume 40,Page 723
CALL TO ORDER
The June 10, 2019 regular meeting of the Seward City Council was called to order at 7:00
p.m.by Mayor David Squires.
OPENING CEREMONY
Sergeant Karl Schaefermeyer led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
David Squires presiding and
Sue McClure Suzanne Towsley
Sharyl Seese
John Osenga Kelley Lane
comprising a quorum of the Council; and
Scott Meszaros, City Manager
Brenda Ballou,City Clerk
Excused—Horn
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Jen Leahy said the Chamber of Commerce Board of Directors had been consulting with
chamber members to obtain their reaction to the borough's proposed 12%bed tax. Leahy said, in
principal,the chamber did not oppose having a borough bed tax,but there may be concerns about the
revenues going into the General Fund,and the timing of the borough bringing it forward now in the
middle of the summer season would make it very challenging for business owners.
Mark Kulstad suggested that, before the borough goes after additional bed tax, perhaps
obtaining compliance from lodging businesses should be addressed first.
Becky Dunn stated her comments were not reflective of the radio station.Dunn said the sales
tax cap had not been raised for some time,but if it did get raised,it would have a negative effect on
people's budgets, particularly for items like home heating fuel and rent. Regarding the borough
proposed bed tax, Dunn didn't believe any of it would go towards the schools, and achieving it
would be a compliance nightmare. She suggested the borough wait and see what they would be
gaining from the Amazon and marijuana sales tax collections.
Bob Reisner said he was speaking for himself and not as a member of the Seward Bear
Creek Flood Service Area Board. Regarding the airport,Reisner provided specific ideas about how
City of Seward,Alaska City Council Minutes
June 10, 2019 Volume 40, Page 724
he envisioned the Resurrection River being redirected using culverts to prevent flooding on the
runways.
..J
Lynda Paquette said many communities used bed tax revenues specifically for tourism and
infrastructure. Paquette asked for an update on the Lowell Point Road storm damage repairs project.
Elliot Jackson thought if the bed tax rate was increased, it would negatively affect tourism
and customers would be very upset.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (McClure/Osenga) Approval of Agenda and Consent Agenda
Motion to Amend (McClure/Osenga) Amend the agenda by postponing the
discussion on the City's harassment &
sexual harassment policies to June 24,2019.
Motion to Amend Passed Yes: Osenga, Seese, McClure, Squires
No: Towsley, Lane
Motion to Amend (McClure/Towsley) Amend the agenda by postponing the
discussion on relative costs and benefits of
a forensic audit in light of constituent
concerns to June 24, 2019. ..�
Motion to Amend Failed Yes: McClure, Osenga, Squires
No: Lane, Towsley, Seese
Main Motion Passed Yes: Osenga, Seese, Towsley, McClure,
Squires
No: Lane
The clerk read the following approved consent agenda items:
Resolution 2019-056, Authorizing The Competitive Sale Of The Properties Described
As Lots 29 And 30, Block 27, Original Townsite Of Seward; Tax Parcel ID No.
14805003 And 14805004,516 & 518 First Avenue, For The Total Amount Of$72,000
To Brad Frazier In Accordance With Seward City Code Section §7.05.
Resolution 2019-057, Authorizing The Competitive Sale Of The Properties Described
As Lot 31, Block 27, Original Townsite Of Seward;Tax Parcel ID No. 14805005, 520
First Avenue, For The Total Amount Of$31,500 To David Kingsland In Accordance With
Seward City Code Section §7.05.
Resolution 2019-058, Authorizing The Competitive Sale Of The Properties Described ••ei
As Lot 32, Block 27, Original Townsite Of Seward;Tax Parcel ID No. 14805006, 522
City of Seward, Alaska City Council Minutes
June 10, 2019 Volume 40,Page 725
First Avenue,For The Total Amount Of$30,300 To Tom Tougas In Accordance With Seward
City Code Section §7.05.
Approval of the May 13,2019 City Council Regular Meeting Minutes.
Non-objection to the Transfer of Ownership for Thorn's Showcase Lounge, LLC, Beverage
Dispensary License #1130 and Approval of the Transfer of the Existing Restaurant
Designation Permit.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards—None
Borough Assembly Report.Kenn Carpenter stated the borough budget had passed at the
last assembly meeting.The assembly had also passed an ordinance to appropriate$50,000 to hire a
lodging auditing firm.Carpenter said he brought forward the proposed ordinance to raise the sales
tax cap in response to citizens telling him to raise taxes in order to save the schools. Carpenter
stated that there were only two ways for the borough to make money:through mill rates or through
sales tax.He said,at this point,it was unknown what the sales tax revenue might be from Amazon
or marijuana sales.
In response to Lane, Carpenter said there was $52 million in the budget for the school
district for 2020; it was fully funded to the cap. He added that Homer was proposing a$12,000
sales tax cap plus a 4%tourism tax.
City Manager Report.Scott Meszaros reported the following purchase orders over$5,000
had been approved by the City Manager since the last council meeting:$8,544.09 to GovConnection,
Inc. for Electric Department computer upgrades; $5,408.32 to GovConnection, Inc. for Accufund
server upgrade;$7,500 to Granicus,LLC for the new city website design,implementation,hosting,
maintenance and licensing per Resolution 2019-040;$247,996.10 to RWC for two dump trucks per
Resolution 2019-053; and, $24,500 to AESI US, Inc. for AKCIP Inventory&Gap Assessment.
Meszaros announced that a Request for Proposals was being issued later this week for
Professional Architectural Services for the Conceptual Design of the Seward Animal Shelter and
recited the following scoring criteria:
Technical Understanding of Scope of Services 15%
Background&Experience 15%
Appropriate State License for Architect& Engineer 5%
Proposed Methodology&Public Input Inclusion 25%
References 5%
Competitive Fees&Costs 35%
Total 100%
Harbormaster Norm Regis announced there was substantial completion on the South
Harbor Launch Ramp project,and he expected it to be operational by Friday this week. In response
to Lane,Regis said the paving at the Seward Marine Industrial Center(SMIC)had been completed,
City of Seward,Alaska City Council Minutes
June 10, 2019 Volume 40,Page 726
and all grant funds had been used. It looked great,Regis said.
In response to Towsley, Meszaros said the Public Safety Forum had been scheduled for
Thursday, June 20,2019 at 5:30 p.m. in the Community Room at the library.
In response to Towsley,Assistant City Manager Brennan Hickok said he was waiting to
hear back from the Alaska Department of Transportation(DOT)on when they would be available to
meet about the Seward airport. In response to Squires, Hickok said he would notify council and
inform the public as soon as a meeting was set.
In response to Lane, Meszaros said the Parks&Recreation Department race protocols that
were furnished as a laydown tonight had been in effect for some time. Lane expressed concern that
the Seward Volunteer Ambulance Corps(SVAC)may not be available for some events;Meszaros
said having emergency services on site as standby would potentially raise event fees from $15 to
$115 per participant.In response to Osenga,Squires said SVAC traditionally did not stage at events
unless specifically requested to, and that SVAC was doing okay for membership.
In response to Towsley,Meszaros stated there was currently no lawsuit pending against the
city for the death that occurred at the Exit Glacier Race.
Other Reports,Announcements and Presentations
Alaska Rail belt Cooperative Transmission&Electric Company(ARCTEC)Report by
Kevin Dunham ....
PUBLIC HEARINGS—None
UNFINISHED BUSINESS—None
NEW BUSINESS
Other New Business
Clerk's memo seeking clarification on council direction to limit presentations to two per
meeting.
By unanimous consent, council agreed that the number of presentations per meeting would be
limited to two,that the length of each presentation would be ten minutes, and that the clerk would
use the timer for presentations going forward.
Council directed the city clerk to bring forward a resolution to update the City Council Rules of
Procedures to reflect this new procedure.
Discuss relative costs& benefits of a forensic audit in light of constituent concerns.
After reciting Rule 11 from the City Council Rules of Procedures,Lane said she was awaiting
the results of the city's financial audit from BDO. In response to Squires,Lane said the main reason
City of Seward,Alaska City Council Minutes
June 10, 2019 Volume 40, Page 727
L she wanted a forensic audit was to find out,once and for all,if there was any fraud happening in the
city.
Towsley said she had been approached by citizens who were concerned with nepotism,
and that she was concerned with the level of distrust between city hall and the citizens.In response to
Squires,Towsley said there needed to be additional discussion because people were still concerned.
Osenga had never heard about mistrust issues. In response to Osenga, Towsley thought a
follow up to the ad hoc committee was necessary.
Seese said this had been a discussion item for a long time. She said she had met and spoken
with many people at city hall, and one never knew the real situation. Seese said she wanted to get
things out in the open.
In response to Squires, Seese said she was not ready to have a Request for Proposals go out.
Towsley concurred, but wanted to have an open discussion when the financial audit results came
back.
McClure stated she thought the topic had been discussed over and over again;she had had no
one approach her about this issue.
L Seese liked the IRS' approach for performing an audit—the person or business had to prove
that everything was all right. Seese didn't think it hurt to talk about it.
Council directed the city clerk to bring this discussion item back on June 24, 2019.
Council recessed at 8:47 p.m.
Council resumed at 8:52 p.m.
Perform random drawing for the Yeosu, South Korea gift.
City Clerk Brenda Ballou announced that four non-profit organizations had put their name in the hat
to receive the gift: Seward Booster's Association, Seward Chamber of Commerce, Seward Area
Hospice, and the Phoenix Chapter of the Alaska Firefighter's Association.
By a random draw from an audience member, the Seward Booster's Association was selected.
Discuss KPB Ordinance 2019-09, Amending the Borough's Sales Tax Code to Levy a 12
Percent Tax on Temporary Lodging, Exempt Temporary Lodging Rentals from the General
Sales Tax,And Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt
up to One-Half of the Borough Temporary Lodging Tax, Subject to Voter Approval.
ii. Council suspended the rules to speak with Borough Assembly Representative Kenn Carpenter.
In response to Squires, Carpenter said this item would be on the October, 2019 borough
ballot and would be a proposed 12%bed tax; any subsequent changes would have to go back to the
voters.
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June 10, 2019 Volume 40, Page 728
In response to Osenga,Carpenter said all borough sales tax went to the education budget,
and this proposed bed tax would also go to the education budget. McClure was concerned that there
was not express language in the borough ordinance to indicate these funds would be dedicated to
education.
Council directed the city manager to draft a resolution of opposition to this proposed borough
ordinance.
Discuss KPB Ordinance 2019-011, Repealing KPB 5.18.430(F) Which Requires Voter
Approval to Increase Sales Tax Cap.
Carpenter stated there were two ways for the borough to get revenue:mill rate and sales tax.
He said the borough was still living on a 1965 sales tax rate.
In response to Squires,Carpenter said the borough granted the voters the privilege to vote on
the sales tax cap,and he was proposing to take back that privilege with this ordinance. In response to
Squires, Carpenter said the borough had not yet contemplated what the cap would be.
McClure warned that there may be considerable backlash from the citizens if the assembly
tried to overturn the 2005 citizen initiative that put voter control in place. She was concerned that
this ordinance would take away the power of the voters.
Carpenter stated this item would go before the assembly for consideration on July 2, 2019.
Council went back on the rules.
INFORMATIONAL ITEMS AND REPORTS
On-Going City Projects and Goals.
In response to Lane,Hickok said R&M Consultants would be performing a site visit for ADA
accessible parking and accessible bathrooms for the second floor of city hall.
By unanimous consent,council rescheduled the housing work session from June 13,2019 to June 24,
2019.
Clerk's Report on Public Records Request through June 5, 2019.
Clerk's Report on 2019 IIMC Conference.
By unanimous consent, council scheduled an appeal hearing for the Board of Adjustment on
Thursday, June 27, 2019 at 5:30 p.m.
COUNCIL COMMENTS
City of Seward,Alaska City Council Minutes
June 10,2019 Volume 40,Page 729
McClure noted the sidewalk repairs being done at Kawabe Park. She announced that there
would be a cemetery solstice tour on June 21, 2019 starting at 10:30 p.m.
Towsley congratulated Seward Pride Alliance for having their first Pride weekend coming
up.She announced that June 14,2019 was Flag Day,and there would be a ceremony at the American
Legion at 6:00 p.m. that day. Towsley thought it was council's duty to address audit issues.
Seese was pleased with the sidewalk repairs,and also that there were new parking signs at the
Jeep Trail. She was concerned about the condition of the sign for the Seward Community Library&
Museum at the cruise ship terminal, and wondered if it could be replaced.
Osenga thanked Kevin Dunham for his first ARCTEC report,and also Kenn Carpenter for
providing information about the ordinances being proposed by the borough.
Lane reminded everyone that elections would be coming up soon. She stated she had had a
good experience traveling on the Alaska ferry system last week,and congratulated everyone on the
new Seward Bike Park.
Squires announced the grand opening for the new Seward Bike Park would be Saturday,
June 15, 2019. He thanked both Kevin Dunham and Kenn Carpenter for speaking tonight.
CITIZEN COMMENTS
Rissie Casagranda said the summer was both busy and stressful.She was concerned that one
of her lodging clients was being charged for eight meters,all of which used less than 100 kWh;she
thought the minimum electric charge was too much because it equated to $100 per meter.
Lynda Paquette was concerned about meanness and cruelty in the city.She implored people
to be kind,and she created a slogan,"Kind,not mean,2019."Paquette said each individual must be
responsible for their own actions,attitudes,and beliefs.She announced she had written a book called
Walking Through The Walls under the author name of Lynda Lamp.
Tony Baclaan announced this weekend would be the first Pride weekend in Seward. He
restated Seward Pride Alliance's mission of acceptance and support, and invited everyone to take
part in the weekend's events: a bonfire on Friday,an Exit Glacier hike,KFT boat cruise,and bar-b-
que on Saturday,and a brunch on Sunday.Baclaan added that he would support the borough's bed
tax in order to support education.
Patrick Messmer said everyone wanted to have good schools and we,as a people,needed to
be willing to pay for them.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Seese said all the Seward Pride Alliance events were published through the SPA's Facebook
page. She thanked Paquette for speaking.
City of Seward,Alaska City Council Minutes
June 10, 2019 Volume 40, Page 730
Lane thanked everyone for speaking tonight.
ADJOURNMENT
The meeting was adjourned at 10:14 p.m.
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