HomeMy WebLinkAbout09132021 City Council Minutes City of Seward,Alaska City Council Meeting Minutes
September 13, 2021 Volume 41,Page 507
CALL TO ORDER
The September 13,2021 regular meeting of the Seward City Council was called to order at
7:00 p.m.by Mayor Christy Terry.
OPENING CEREMONY
Police Chief Alan Nickell led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Christy Terry presiding and
Tony Baclaan Sue McClure
Sharyl Seese John Osenga
Liz DeMoss Ristine Casagranda
comprising a quorum of the Council; and
Janette Bower, City Manager
Brenda Ballou, City Clerk
Brooks Chandler, City Attorney
Excused—None
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Jackie Wilde had provided her resignation to the city. She urged council to exercise fair and
equitable measures, and practice integrity and accountability. She said action did not have to be
illegal to be unethical, and she admonished council to uphold the integrity of their oaths of office.
Arne Hatch spoke in favor of Resolution 2021-102 for the property sale to Chugachmiut.He
utilized the NorthStar health clinic and thought this would be a great facility to have in Seward.
Suzi Towsley supported the sale to Chugachmiut.Her children would benefit by using it,as
well as many other citizens in the community.Towsley thanked all of council for the time and effort
they put in;growth was sometimes hard,but it usually led to good things. She appreciated that city
hall felt like a professional place where people could be heard.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Baclaan/McClure) Approval of Agenda and Consent Agenda
City of Seward,Alaska City Council Meeting Minutes
September 13, 2021 Volume 41, Page 508
Terry removed the following resolutions from the consent agenda: Resolution 2021-100,2021-101,
and 2021-104.
Osenga removed Resolution 2021-102 from the consent agenda.
Terry moved the joint letter for the Port of Alaska onto the consent agenda with no objection from
council.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2021-095,Authorizing The City Manager To Enter Into A Contract With TriDelta
Incorporated For City Calendar Advertising In The Seward Journal At A Rate Of$273 Per
Week Beginning January 1, 2022 Through December 31, 2024.
Resolution 2021-096, Authorizing the City Manager to Enter into a Contract Agreement
Between the City of Seward, Alaska and the State of Alaska Department of Administration,
Division of Motor Vehicles to Operate the City of Seward Division of Motor Vehicles Office.
Resolution 2021-097,Authorizing the City Manager to Enter into a Contract with the Alaska
Department of Public Safety to Provide Basic Clerical Services, Parking, and Access to the
Datamaster Instrument for the Alaska State Troopers.
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Resolution 2021-098, Approving a Change Order to the Purchase Order for Portable Toilet
Services to Account for Additional Servicing During Peak Season in The Amount Of$30,905
and Appropriating Funds.
Resolution 2021-099,Authorizing the City Manager to Enter into a Contract with McKinley
Fence Company in the Amount of$98,489 to Tear Down the Existing Security Fence around
the Fort Raymond Substation and Replace with a Stronger and Taller Security Fence to
Improve Public Safety and Security.
Resolution 2021-103, Authorizing the City Manager to Purchase Distribution System
Materials—Poles, Lines, Pole-top Assemblies, Support Assemblies, Insulators and Other
Hardware—in an Amount not to Exceed $110,196, Including a 15% Contingency, for the
Relocation of Poles and Power Lines to Accommodate an Alaska Department of
Transportation (AKDOT) Shoulder Widening Project on the Seward Highway near Moose
Pass, and Appropriating Funds.
Approval of the August 23, 2021 City Council Regular Meeting Minutes.
Review the joint letter concerning the Port of Alaska from the Alaska Mayors and Chambers
of Commerce, and authorize the mayor to sign on behalf of the City of Seward.
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September 13, 2021 Volume 41, Page 509
SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Proclamations & Awards
Recognizing Erin Lemas and Laura Schneider for their service on the Port &
Commerce Advisory Board.
Recognizing Myla S.Liljemark from Seward Middle School for being named the 2021
Alaska History Teacher of the Year.
Remembering September 11,2001 Proclamation
POW/MIA Recognition Day Proclamation
American Legion Day Proclamation
Borough Assembly Report. Kenn Carpenter stated the assembly would be providing$2
million additional to the school district. There had been a vaccination mandate resolution that had
been tabled by the assembly because it was poorly written and biased.
McClure asked about the assembly resolution to limit comment time for assembly members.
In response,Carpenter said there were some assembly members who spoke at length,sometimes for
10-15 minutes; assembly comments were now limited to five minutes.
City Manager Report. City Manager Janette Bower reported that the library was now
fully staffed. Last week,she had hosted US Senator Lisa Murkowski and had taken her on a tour of
the Lowell Canyon Tunnel.
Public Works Director Doug Schoessler stated the rain had slowed down;the waterfall had
started to get color,but it was not at a concerning level. He would watch the waterfall closely.
Bower said she had also spoken with Murkowski's staff about J-1 workers. She announced
that masking was mandatory for city employees until the case numbers dropped. Bower was
watching President Biden's mandate for vaccinations; currently the city was exempt from that
requirement.
Terry asked for an update on the electric outage on September 9,2021,as well as the city's
Facebook page.
Electric Director Rob Montgomery stated on September 9,he received a call from Chugach
about a breaker that was tripped;they discovered there was a tree near the Fort Raymond substation
that had blown over into the lines. All the other small outages that happened lately were due to
squirrels.
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September 13, 2021 Volume 41, Page 510
Seese asked for an update on the forensic audit. Bower said it was still underway, and the
report would come in approximately six weeks.
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City Attorney Report.City Attorney Brooks Chandler said his report covered the month
of August,and had been a fairly routine month. He had prepared a no litigation letter in preparation
for a potential bond. There were a couple of enforcement issues related to zoning. He had been
spending considerable time on the recodification project;he estimated his work on that project was
75% done. He had begun the process for the city to dispose of property in order to incent housing;
covenants and/or deed restrictions may be considered.
Other Reports and Announcements—None
Presentations
Alaska Submarine Memorial Project presentation by Doug Poad and Waino Salo.
PUBLIC HEARINGS—None
UNFINISHED BUSINESS —None
NEW BUSINESS
Resolutions
Resolution 2021-100, Authorizing The City Manager To Purchase Transmission System
Materials—Poles, Pole Top And Support Assemblies, Conductors, Insulators, And Other
Related Equipment, In The Amount Of $15,021,744 To Replace Aging And Deteriorating
Equipment And To Upgrade The System's Voltage Capacity To Meet Future Load Growth.
Motion (Baclaan/McClure) Approve Resolution 2021-100
Montgomery said the city was at a crossroads; the infrastructure was aging, and the city's
future capacity needed to be considered. Five important projects had been identified: Nash Road
transmission rebuild, Seward highway upgrade from Dieckgraeff Road to the Fort Raymond
substation,converting the substations from 69 kV to 115 kV capacity(not including the replacement
of seven transformers), Spring Creek substation refurbishment, and build a new substation in the
harbor, including extending the 115 kV lines from the Fort Raymond substation to the harbor
substation. Montgomery said the bottom line was the electric infrastructure was in poor condition,
well beyond its useful service life, and these projects would provide Seward with stability for the
next 30-40 years.
Bower added that this resolutions did not include the seven transformers; the transformers
were included in a different resolution tonight.
Terry stated council had previous work sessions related to this project.She wondered how the
City of Seward,Alaska City Council Meeting Minutes
September 13,2021 Volume 41,Page 511
decision was made to go with wood poles. Montgomery said wood poles were more cost effective,
and there were some tricky locations where the linemen had to climb the poles, which would be
prohibitive with steel or fiberglass poles.
Terry stated the upgrades would happen regardless of whether they were for 69 kV versus
115 kV lines. Montgomery said this was an opportunity to upgrade and improve, which would
prepare the city for the future and mitigate line loss.
Seese wondered if there was a way to protect the wood poles against the weather conditions.
Montgomery said the poles were treated and he would work with the contractor to get the best
product available.
Baclaan wondered what the future plan for the electric infrastructure would be.Montgomery
said his plan for the future would be monitoring the transmission systems,performing pole testing,
and watching the maintenance closely.Bower added that the role of the city manager was to hold the
electric director accountable,and council held the city manager accountable.Montgomery said it was
difficult to ask council for almost $20 million, but the condition of the infrastructure made it
necessary.
Casagranda wondered if Resolution 2021-100 and 2021-101 combined to make up the$19.4
million that was referenced; Bower confirmed that was correct.
Motion Passed Unanimous
Resolution 2021-101, Authorizing The City Manager To Purchase Seven Electric
Transformers In An Amount Not To Exceed$4,800,000,Which Includes A 15%Contingency,
To Help Ensure Service Reliability For Seward Residents And Businesses While Also Allowing
The City To Meet Future Load Growth,And Appropriating Funds.
Motion (Baclaan/McClure) Approve Resolution 2021-101
Montgomery said he needed to replace the transformers in the substations; most of the
transformers were approximately 40 years old and in very poor condition.There was a very long lead
time once the order was placed to when the city would receive them;it could take up to 72 weeks to
arrive.Terry stated that most of these transformers would replace existing transformers;there was an
advantage to upgrading to 115 kV during the replacement.
Terry wondered why there was a 15% contingency. Montgomery stated there were market
conditions that made it advisable to have an extra contingency.Terry wished to have regular updates
on the progress.
Baclaan asked about the disposal for the old transformers. Montgomery said the contractor
would be responsible for taking care of the proper disposal.
Motion Passed Unanimous
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September 13, 2021 Volume 41, Page 512
Resolution 2021-102,Authorizing The City Manager To Enter Into And Execute The Purchase
And Sale Agreement And Related Documents With Chugachmiut For The Sale Of A 3.31 Acre worj
Portion Of Lot 7A Fort Raymond Subdivision Replat No 1, Physical Address 2101 Dimond
Blvd, 2109 Dimond Blvd, In The Amount Of$663,500.
Motion (Baclaan/McClure) Approve Resolution 2021-102
Osenga declared that he had previously served on the board for Chugachmiut,three years ago,
but he did not believe he had a conflict of interest. Terry asked if Osenga had a direct or
indirect financial interest.Osenga said he did not.Terry ruled that no conflict existed.There
was no objection from council.
Bower said on April 12,2021,council approved Resolution 2021-038 which authorized the
city manager to negotiate the sale of this 3.31 acre property.Two appraisals had been conducted,one
by the city and one by the buyer; the mid-point between the two appraisals was agreed upon as the
price of the property. The negotiations had been completed.
Casagranda had not been involved in property sale before. Fair market value, in her
estimation, should be taken as the higher value of the two appraisals. She wondered why the city
would not wish to sell for the higher rate.
Terry observed that the city attorney had reviewed this resolution,and noted that council had
the authority to dispose of property at less than fair market value. In response, Chandler said the
proposed price exceeded one of the two appraisal figures, so it met the letter of the code. Chandler
added that an express public interest reasoning would allow council to sell for less than the appraised
value.
Casagranda asked if there were prohibitions in the contract that would disallow the buyer to
subdivide or resell the property. Chandler stated there were not. Bower stated the buyer was relying
upon federal grant funding to accomplish the project.
Motion Passed Yes: Seese, DeMoss, Osenga, Baclaan,
McClure,Terry
No: Casagranda
Resolution 2021-104, Declaring Its Intention To Reimburse Itself From Proceeds Of One Or
More Tax-Exempt Financings For Certain Expenditures Made/Or To Be Made In Connection
With The Acquisition, Construction And Equipping Of Certain Electric System Capital
Improvements.
Motion (Baclaan/McClure) Approve Resolution 2021-104
Terry said she pulled this from the consent agenda for clarification about what this resolution 1
would do versus having a resolution that approved a bond.
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September 13, 2021 Volume 41,Page 513
Bower said,prior to the city's application to pursue a bond,the city's bond counsel advised
that council should declare their intention to seek reimbursement for qualifying preliminary projects
with bond proceeds for expenses before a bond was issued. Bower said this resolution was not
approving a bond, but established the city's ability to capture preliminary allowable expenses for
repayment from a future bond.Should a bond not be pursued,this resolution would become null and
void.
Motion Passed Unanimous
Resolution 2021-105, Approving Certain General Fund Capital Improvement Projects for
Planning, Prioritization, and Implementation.
Motion(Baclaan/McClure) Approve Resolution 2021-105
Assistant City Manager Stephen Sowell stated that the capital improvement plan priorities
had been worked on for some time. As part of the budget process, the complete list of capital
improvements would come to council for review and approval, but in discussions with the city's
state and federal lobbyists,he had been encouraged to develop a viable list of shovel-ready projects
in anticipation of potential funding opportunities that might become available.Tonight,Sowell was
hoping that council would provide confirmation and/or direction on the next top five projects they
would like addressed.The city was already moving forward with the new animal shelter project and
the Lowell Canyon Tunnel project so those projects were not on the list tonight.
Motion to Amend (Terry/Baclaan) Amend Resolution 2021-105 in Item 5 by
striking"Establishment of" and replacing
it with"Conduct a needs assessment for"so
that it reads,"Conduct a needs assessment
for a Community Recreation Center."
Terry said she thought it was important to obtain feedback and input from the community on
the direction they would want to take.
Motion to Amend Passed Unanimous
Terry wished to remain cognizant of the city's housing shortage, and in light of the city
having$500,000 from Norwegian Cruise Lines, she wondered if that was the reason why housing
was not included on the list tonight. Sowell confirmed that was the case.
Osenga asked when the addition of utilities for campground sites was added to the priorities
list.In response,Sowell said it was included on the survey results;as well,the campground usage for
2021 had been extremely high, and additional utilities would only improve revenues for 2022. In
response to DeMoss,Sowell said the cost would be approximately$400,000 and he would expect to
recoup those costs within two to three years.
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September 13, 2021 Volume 41, Page 514
Motion to Amend (Casagranda/Terry) Amend Resolution 2021-105 in Item 5 by
adding "the establishment of" so that it
reads,"Conduct a needs assessment for the
establishment of a Community Recreation
Center."
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Other New Business Items
Vote and appoint a representative to the Cook Inlet Aquaculture Association (CIAA) with a
term to expire May, 2022. Candidates are: Robert White and Robert Barnwell.
Clerk's Note: Since the term will expire in May, 2022, council may choose to appoint the
representative to serve the remainder of the current term plus the next full term (May, 2025), or else
the city clerk will solicit letters of interest in April, 2022 for the next term.
Motion (Terry/McClure) Appoint the representative to serve the
remainder of the current term plus the next
full term.
Motion Passed Unanimous
ari
The city clerk passed out ballots to council for the first vote.The ballots were collected and read into
the record:
White 1
Barnwell 6
Motion (Terry/McClure) Appoint Robert Barnwell to the Cook Inlet
Aquaculture Association (CIAA) with a
term to expire May, 2025.
Motion Passed Unanimous
Discuss the future use or potential sale of the Annex Building.
Bower stated the appraisal on the Annex Building was approximately$400,000,which was
lower than expected. The appraisal stated the building was constructed in 1950,and was near the end
of its economic life. Bower said there was a lease in place to the food bank through 2025. She was
seeking council direction on next steps.
DeMoss thought it would be a good idea to put the building sale out for a sealed bid, with a
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September 13, 2021 Volume 41,Page 515
condition that the food bank remain or work out something with them. Baclaan concurred with
DeMoss,but wondered if there could be a conversation with the food bank first to see if there was
another location they could move to.
McClure didn't think there was a great urgency to sell the building,especially at that price;
she preferred to wait a while. Seese said there wouldn't be room in the senior center building. In
response to Terry, Parks & Recreation Supervisor Adam Sayler said the Boys & Girls Club
occupied the senior center building where the food bank used to be. Osenga supported DeMoss'
suggestion,but preferred to allow the food bank a chance to find a new location.
Baclaan wondered what the current lease terms for the food bank were.Sowell said the lease
payment terms had been reduced,but didn't have specifics with him tonight.
Terry said she would prefer to not take action to sell the building at this time, but would
entertain any offers that may come in.
Seese wondered about where the food bank would go,as well as the city offices that occupied
that building.
Terry wondered if council wished to see plans regarding where the city personnel and the
food bank would go.
Casagranda wondered if there would be any interest in leasing the building; if the building
was to be sold, she would want to have assurances that property tax would be generated. DeMoss
said the building was old, and the market was strong for sellers right now; she thought it would be
worth discussing further.
Council directed the city manager to research options for selling versus leasing, speak to the food
bank to discuss options, and consider where the employees would be relocated, then bring that
information back to council.
INFORMATIONAL ITEMS AND REPORTS—None
CITIZEN COMMENTS
Bob Valdatta was really surprised about the possibility of the USSAlaska coming to Seward.
He fully supported the project and was excited about the prospect.Today was his 83`d birthday,and
he would love to see this project happen.
Lynda Paquette worried about selling the Annex Building,mainly because city hall needed
to be repaired so badly. She had heard that the childcare building deal had fallen through, and
thought perhaps the annex could be used for childcare. She wondered if the annex was an asset the
city shouldn't hold onto.
City of Seward,Alaska City Council Meeting Minutes
September 13,2021 Volume 41,Page 516
Suzi Towsley was the local advocate and program manager for the domestic violence and
sexual assault program. Alaska had the highest rates of sexual assault and domestic violence in the
country.The 24-hour Crisis Line was(907)362-1843.October was Domestic Violence Awareness
and Prevention Month; she would be bringing forward a proclamation next month. Domestic
violence manifested in many ways; one concern was the lack of a DMV this summer. She
commended the DMV employee for trying to serve everyone. Towsley said there were lots of
veterans in Seward, and she was enthusiastic about the submarine project.
Alan Nickell was a veteran,and was a proud father of a Navy man.He thought the submarine
project was very cool and he was excited at the prospect. He recalled a visit to San Diego where
there were similar things for people to visit.
COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN
COMMENTS
Bower wanted to expand on the definition for shovel-ready projects.Projects had to be more
than a concept,but may not necessarily have to be literally ready.She appreciated council's attention
and support for the electric projects tonight; these were big projects.
Casagranda wished Bob Valdatta a happy birthday.She thanked public works for keeping a
close eye on the waterfall,and the electric department for their work. She appreciated all the citizen
input, and was excited for the future of Seward.
DeMoss congratulated the library for being fully staffed.She congratulated Erin Lemas and
Laura Schneider for their service.She thanked administration for following through with Murkowski
on J-ls, and she thanked Montgomery for his attention and work on the electric infrastructure.
Osenga thanked Lemas and Schneider,and congratulated Liljemark on her accomplishment.
He thanked the council and administration for their hard work. Be COVID conscious. He wished
Jackie Wilde the best.
Seese thanked Jackie Wilde and wished her well.She wished Bob Valdatta a happy birthday.
She thanked Erin Lemas and Laura Schneider for their service. She hadn't heard about the childcare
not working out;Terry clarified that it was the sale of the building that fell through,not the childcare
endeavor itself.
McClure echoed all the thanks and congratulations. She welcomed Bob Barnwell to the
CIAA. She was pleased to see progress in the city and was excited to move ahead with the electric
infrastructure.The election would be on October 5,2021 and included council,a waste management
franchise contract, and borough assembly representative. Be COVID conscious; fl u shots were
available at Safeway.
Baclaan thanked Robert White and Robert Barnwell for their interest in serving on CIAA.
He recalled Bob Valdatta driving him on the bus to Seward nine years ago when he first moved here.
He thanked Laura Schneider for her time and energy on PACAB, and thanked Erin Lemas for her
City of Seward,Alaska City Council Meeting Minutes
September 13, 2021 Volume 41, Page 517
service. Alaska Waste was having a community presentation about their services. He thanked
administration for their hard work. He encouraged everyone to get out and vote.
Terry stated the Seward Community Foundation had celebrated a milestone on September 9,
2021; there was almost $4 million in the endowment fund, and they had given out $1 million in
grants. The domestic violence crisis line was (907) 362-1843. She expressed condolences to the
family of Anne Hatch. She stated that one of her daughters was now working at the library part-time.
Terry said PACAB was a great board to be involved with and encouraged people to apply.
ADJOURNMENT
The meeting was adjourned at 9:09 p.m.
Brenda J. Ball , M risty Terry
City Clerk Mayor
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