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HomeMy WebLinkAbout01102022 City Council Minutes City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41,Page 572 CALL TO ORDER The January 10,2022 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Christy Terry. OPENING CEREMONY Police Lieutenant Karl Schaefermeyer led the Pledge of Allegiance to the flag. ROLL CALL There were present: Christy Terry presiding and Sue McClure John Osenga Liz DeMoss Ristine Casagranda Mike Calhoon Randy Wells 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 Bob Valdatta said he had a recent fuel delivery that cost a great deal of money;he thought this community would benefit from having natural gas.Natural gas was being trucked out of Nikiski; he thought it could easily be delivered to Seward. Tom Tougas was shocked to hear that Magistrate George Peck had been fired from the state courthouse;he thought Magistrate Peck deserved to have a proclamation or some other recognition to honor his 40+years of service.He was very disappointed in the way the state had handled things, and that our community would really miss not having Magistrate Peck here. Carol Griswold said she had many concerns about the size of the agenda packet for this meeting;she wondered if anyone,public or council,had a chance to even read through it all the way. She believed that public input should be valued and considered. She was specifically concerned about: the resolution to consider developing the bench across the bay because the proposed appropriation was for over$100,000 to study undevelopable land;the resolution to negotiate for the Gillespie property purchase was premature without additional information like soil studies, flood maps,etc.;and,the resolution to propose selling the Dora Way property was also premature because City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41,Page 573 the new playground at the Jesse Lee Home site was far from ready. Griswold was appalled that the city was willing to destroy the Forest Acres campground to install a subdivision. She believed that the extreme focus on summer tourism had led to an unbalanced economy and winter housing vacancies; many residents had to vacate their winter rentals so that they could be used for nightly lodging. The charm of Seward and its quality of life were being harmed. The Omicron variant of COVID-19 was highly transferable, and she encouraged council to reinstate the Zoom meeting options. David Squires supported Resolution 2022-004 for the new fire command vehicles, and he applauded the approach to developing a utility infrastructure expansion plan.Regarding the Gillespie properties,he reminded council that in the late 1980s,that property was a stump dump site and he didn't believe it was suitable for building construction;he suggested a better location would be on the city-owned property in that area. Bruce Jaffa said he appreciated administration requesting an extension on the heat loop project grant.He was very interested in addressing the worker shortage in the community;all sorts of full-time,funded positions were available in Seward that were not being filled,and he wanted to get local businesses together to address the issues.One of the common issues he heard about was a lack of housing availability for workers,but that was not the only concern. Skip Reierson said he had read the packet for tonight's meeting,and he thought the city had an R 1 zoning code enforcement problem.He thought the housing definition changes coming tonight were confusing.He believed that homes in R1 zones should be prohibited from renting for less than 30 days,and that short-term lodging businesses should be owner-occupied,not operated by property managers or agents. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (McClure/Casagranda) Approval of Agenda and Consent Agenda Terry removed the October,2021 City and Providence financials from the agenda. Terry removed the Introduction of Ordinance 2022-002 from the consent agenda. Casagranda removed the Introduction of Ordinance 2022-001 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinance 2022-003,Amending Portions Of Seward City Code 15.10.226 Land Uses Allowed, J Employee Campgrounds. This ordinance was introduced tonight and will come for public hearing and enactment on January 24, 2022. Resolution 2022-002, Adopting An Alternative Allocation Method For The FY2022 Shared City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 574 Fisheries Business Tax Program, And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In The Cook lr Inlet Fisheries Management Area, And Authorizing The City Manager To Apply For Funds From The Shared Fisheries Business Tax Program. Resolution 2022-007, Amending The City Council Rules Of Procedures, Rule 16, To Reflect Changes Made To The Evaluation Forms And Introducing New Goal-Setting Forms For The City Attorney, City Clerk, And City Manager. Approval of the December 13, 2021 City Council Regular Meeting Minutes. Approval of the NEW liquor license and Restaurant Designation Permit for the Gateway Hotel, License#5983 Beverage Dispensary—Tourism. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Polar Bear Jump Off Festival Proclamation Congratulating the Seward Middle School Girls Basketball Team for winning Borough Championship City Manager Report. City Manager Janette Bower reported the heat loop project had been extended for an additional three months;she would request another extension in three months. She had a meeting today for the jail with the governor's office to bring them up to speed on the concerns; the governor's office had received the information well. DeMoss wondered why the heat loop project was squashed originally. Bower said the cost estimate the city had received was millions more than the city anticipated. In response to DeMoss, Bower thought there would be no problem getting another extension. DeMoss asked for an update on the railroad terminal project. Bower said, after her meeting with the railroad, the railroad had met with another entity to discuss a public-private partnership; ultimately, the railroad had declined to pursue that public-private partnership. Bower said the railroad intended to complete the project using their own funding in the form of bonds; the city would not be funding the project. City Attorney Report. City Attorney Brooks Chandler reported that for December his firm had worked on a variety of departmental issues. He had begun work on what it would take the city to get out of the healthcare business. He had received feedback from the university regarding a lease that he would bring forward in the future. There had been an environmental issue at OBI Seafoods;this may result in a covenant being put on the property in the future,and would potentially impact the city's lease with OBI. City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 575 Casagranda wondered what lease the university had. Harbormaster Norm Regis said the university and shellfish hatchery were considering making some upgrades in the future that would potentially impact their lease. Other Reports and Announcements Chamber of Commerce Report.Executive Director Kat Sorenson handed out the new 2022 visitors guide. There was a new addition about a trail and bear etiquette guide. The marine guide was a new addition to the chamber's print materials and in March there would be a hometown guide prepared for residents. The chamber was working with the city on branding the city's legislative priorities. The Shop Small weekend held in November had been successful, and brought out over 250 unique shoppers. The New Year's Eve fireworks celebration had taken place,despite heavy winds. The Polar Bear Jump would be this weekend.The Tsunami Bowl would be on February 5,2022,and the chamber was creating a February 14th weekend to inspire visitors to come to Seward. Sorenson announced that Kelly Anne Cavaretta had been hired as the new Small Business Development Center (SBDC) consultant, had started today full-time, and had an office located inside the chamber building. Presentations Seward Area Hospice presentation by Ellen O'Brien and Lila Hurst Forensic Audit presentation by Greene Forensic Accounting, LLC PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2022-001,Authorizing The City Manager To Enter Into A Consent Assignment To Vertical Air LLC, To The Lease Agreement L06-008 With Juris Mindenbergs, For Lot 5B, Block 1, Seward Small Boat Harbor Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2000-19, Seward Recording District,Third Judicial District, State Of Alaska To Extend The Term Of The Lease For 16 Years And To Add Two Five-Year Options To Extend. Motion (McClure/Osenga) Approve Resolution 2022-001 Regis stated there would be a new owner of the building, and they wished to take over the lease for this location. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Motion to Amend (Terry/Casagranda) Amend Resolution 2022-001 by adopting the City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 576 substitute laydown version of the Lease Extension Agreement. Regis said in 2009,a fence had been constructed which resulted in additional language being included in the lease extension; specifically, the language related to the easement. Motion to Amend Passed Unanimous Main Motion Passed Unanimous Council recessed the meeting at 8:30 p.m. Council resumed the meeting at 8:35 p.m. UNFINISHED BUSINESS —None NEW BUSINESS Ordinances for Introduction Ordinance 2022-001,Amending Portions Of Seward City Code 15.10.140 Definitions,Related To: Apartment, Boarding House, Dwelling, Duplex, Unit, Hostel, Hosted Lodging Unit, Housing Unit,Insurance Company,Licenses,Listing,Listing Site,Lodging,Motel,Multistory Unit,Owner,Short-Term Rental,Short-Term Rental Transaction,Sleeping Unit,Townhouse, Transient,And Whole House Nightly,And Enacting Language In 15.10.226 K Pertaining To Short-Term Rentals. Motion (McClure/Casagranda) Introduce Ordinance 2022-001 Community Development Director Jason Bickling said this was coming forward in response to the continuing need to improve city code. The city code would continue to be refined moving forward as new terminology came about and new demands came from citizens. Casagranda had been in the lodging industry for almost 20 years,but she could not relate the proposed changes in this ordinance to the way she operated her business. She wondered if existing businesses would feel an impact from this ordinance. In response, Bickling said this was an attempt to clarify the process, and the language in this ordinance was intentionally kept simple. Bickling did not believe that citizens should have to be experts on reading city code; instead, citizens should be provided with the pros and cons and rules for doing business. Motion Passed Unanimous Ordinance 2022-002, Amending Portions Of Seward City Code 15.10.140 Definitions, To Amend The Definition For Light Manufacturing, And To Amend 15.10.226 Land Uses Allowed Table: Allowing Light Manufacturing In A Central Business District With A Conditional Use Permit. City of Seward,Alaska City Council Meeting Minutes January 10,2022 Volume 41,Page 577 Wells declared a potential conflict of interest because he owned a marijuana business downtown and this ordinance would have a direct impact on his business. Mayor Terry ruled that a conflict existed with no objection from council. Wells removed himself from the dais. Motion (McClure/Casagranda) Introduce Ordinance 2022-002 Bickling said light manufacturing had historically taken place in the Central Business District for many, many years. The intent of this ordinance would be to allow for light manufacturing through the Conditional Use Permit (CUP) process; the intent was to allow existing businesses to continue operating and new businesses to enter the market, while controlling things like excessive odors and noise. Casagranda wondered what the impact would be for existing businesses. Bickling assumed existing businesses would be allowed to continue, without having to go through the CUP process.New businesses,or new ownership of existing businesses,would go through the CUP process. In response to DeMoss, Bickling confirmed that once a CUP was granted to a business owner, it would remain in place with no need for renewal. Motion Passed Unanimous Wells returned to the dais. Resolutions Resolution 2022-003,Authorizing The City Manager To Execute Task Order R&M No.21-00 With R&M Consultants For The Development Of The SMIC Bench In The Amount Not To Exceed$123,395 And Appropriating Funds. Motion (McClure/Casagranda) Approve Resolution 2022-003 Bower wanted to clarify that this resolution was intended to find out information that wasn't currently known;this would answer the question of whether this project would even be feasible or not. Based on the initial feedback from R&M,the city would know which direction to take. Assistant City Manager Stephen Sowell said members of the community were continually asking administration about what was being done for housing.This exploration by R&M would indicate what kinds of developments could be done in this area: housing, recreation, etc. McClure wondered if saying"SMIC bench"was the best terminology to use,since the area in question may or may not be considered part of SMIC. In response,Sowell said this area had been referred to by at least four different names over the years,and while doing research,he City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 578 became confused at times. Bower said if the project was ultimately determined to be feasible, the city would name the area and use that name consistently. Sowell said Phase 1 would be started in the spring and Phase 2 might be started over the summer, depending upon weather conditions in the springtime. Motion Passed Unanimous Resolution 2022-004,Authorizing The City Manager To Purchase(2)2022 Ford F-150 Super Crew Cab Police Responder Trucks From Kendall Ford Of Anchorage Under The State Of Alaska Fleet Vehicle Contract,With Associated Upfitting And Fire Specific Equipment From Alaska Safety, And ProComm Alaska In The Amount Not To Exceed $122,463.92 And Appropriating Funds. Motion (McClure/Osenga) Approve Resolution 2022-004 Fire Chief Clinton Crites said this resolution would replace the fire department's current command vehicles; the engines were decent, but the electrical systems were shot and parts were not available. In response to Terry, Crites said the current vehicles would be surplused. Motion Passed Unanimous M.r Resolution 2022-005,Directing The City Manager To Enter Into Negotiation To Purchase The Lots Owned By Thomas Gillespie, Located At 2405 And 2413 Seward Highway, For The Future Location Of The Public Works Shop Facility And To Begin The Required Appraisal Process. Motion (McClure/Osenga) Approve Resolution 2022-005 Bower said administration had discussed alternative location options for the new public works facility with council,including the Fort Raymond area;feedback indicated that this would not be the highest and best use for that location. Bower said she intended to conduct Light Detection and Ranging (LiDAR) research, flooding issues, core samples, and other due diligence research and testing, along with the appraisal process. Casagranda wanted to be sure that any negotiations would be contingent on the results of all the due diligence that Bower conducted, and all the research would be provided to council for consideration. Bower confirmed. McClure wanted assurance that this location would not be in the flight path of the existing or future airport runways. Motion to Amend Casagranda/DeMoss) Amend Resolution 2022-005 in the title by City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 579 adding the words, "and other due diligence" so that it reads, "...For The Future Location Of The Public Works Shop Facility And To Begin The Required Appraisal And Other Due Diligence Processes." Calhoon asked if the city would be able to back out of negotiations,at no cost to the city, in the event the city wished. In response,Chandler said it was common to have a period of 30 to 90 days in which to perform due diligence with no risk. Chandler said there didn't need to be any formal documentation,just an understanding that the property owner would allow access to the property. Casagranda said there were costs associated with conducting an appraisal, performing soil tests, etc. In response to Terry, Bower stated the cost for conducting the various due diligence procedures would come from the budget and she did not expect to need an additional appropriation. Motion to Amend Passed Unanimous Calhoon wished to keep the city's options open in the event that a different property was identified that also had potential to be a good location. Terry also wished to keep the city's options open. Main Motion Passed Unanimous Resolution 2022-006, Directing The City Manager To Create A Project Plan For The Expansion Of Utility Infrastructure Which Will Increase Residential Development Within City Limits. Motion (McClure/Casagranda) Approve Resolution 2022-006 Terry said she and DeMoss had worked with the city manager to bring forward this resolution to create a development plan for expanding the city's utilities.This resolution would not commit the city to any specific plan, but was intended to create a reference document that could be used as a guideline. Casagranda appreciated this proactive approach. Motion Passed Unanimous Resolution 2022-008,Authorizing The Sale Of Real Property Located At 1911 Dora Way,Also Known As The Dora Way Playground By Sealed Bid As Provided By Seward City Code. Motion (McClure/Osenga) Approve Resolution 2022-008 Bower said she had worked with the city attorney on the process for disposing city- ,,, City of Seward,Alaska City Council Meeting Minutes January 10,2022 Volume 41,Page 580 owned property.This resolution was the result of their discussions,and was the first step in the process. Sowell stated this was a location that may be ideal for the construction of a new home. Bickling added that the Jesse Lee Home site would provide a new park in the future. Motion to Postpone (McClure/Casagranda) Postpone Resolution 2022-008 to January 24, 2022. Motion to Postpone Passed Unanimous Other New Business Items Schedule a Special Meeting with a Committee of the Whole to discuss the legal relationship between the City of Seward and Providence Hospital on February 14, 2022 at 6:00 p.m. Bower had begun discussions with Providence Hospital that indicated Providence wished to break off from the city and stand on their own. The hospital didn't need the city anymore because they were doing well,and if they were independent,Providence would be able to seek funding from different sources. In response to Casagranda, Bower said Mountain Haven Senior Living Center would be included in the discussions. Council scheduled a special meeting on February 14, 2022 at 5:30 p.m. to discuss the legal relationship between the City of Seward and Providence Hospital. INFORMATIONAL ITEMS AND REPORTS This item was removed from the agenda. City clerk's letter to the Alcohol&Marijuana Control Office(AMCO)stating non-objection to the renewal of liquor license#5621 Restaurant/Eating Place—Public Convenience for The Highliner Restaurant. CITIZEN COMMENTS Cliff Krug thanked council for approving the lease transfer for Vertical Air.He and his wife had started the business in 2016,and they were still growing;he appreciated all the support from the community and the Chamber of Commerce.Some of the challenges that he faced as a small business included employee housing;he currently leased two three-bedroom apartments year-round just for his employees.Retail space was at a premium in this community,especially for artists and makers. Krug was disheartened by a lack of attention to developing year-round activities, including more restaurant options. City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 581 Bob Valdatta said he had spoken to the organizer of the USS Alaska project who had indicated they were having trouble finding property in Seward. Valdatta suggested the area at Boulder Field near Scheffler Creek might be a good location. Bruce Jaffa was pleased to see the progress made towards exploring new areas and ideas for development. Lynda Paquette appreciated the work being done to hold a public community event to discuss employment hardships, with local business owners and the Chamber of Commerce. She believed the issues relating to housing were tied to expanding winter activities. Doug Schoessler was impressed with the Seward Area Hospice presentation and encouraged everyone to donate. He would match donations made between now and February 1, 2022, up to $500. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Bower invited council to provide questions to her about the forensic audit,with the idea that perhaps the auditors would come to Seward. The new CPA Carmen Jackson would be on site starting on Monday. Wells thanked public works for taking care of the roads so well.The freezing rain today was really bad, but he noticed that the sidewalks downtown looked clear. He appreciated the feedback and input from citizens about the properties discussed on tonight's agenda. Calhoon appreciated the community involvement at tonight's meeting.Bringing natural gas to Seward would be beneficial; he recalled addressing this topic 20 years ago, and thought perhaps the topic could come back. He congratulated the girls basketball team. He encouraged everyone to come out for the Polar Bear Jump and the turkey bowl at the American Legion on Saturday. Casagranda would be away from this week until the first meeting in March. She congratulated the girls basketball team. She appreciated the work being done to address issues in the community, including housing. DeMoss thanked Seward Area Hospice for their presentation tonight. The forensic audit results were not surprising,but she was confident that the current administration would address and fix the issues. She had attended the KPEDD Industry Outlook Forum last week and there was a positive message about Seward's future. The visitors guide looked great; she welcomed the new executive director. She thought perhaps council should provide Magistrate Peck a thank you card for his service. Osenga congratulated the girls basketball team.He encouraged everyone to support the Polar Bear Jump this weekend. He thanked Magistrate Peck for his service. City of Seward,Alaska City Council Meeting Minutes January 10, 2022 Volume 41, Page 582 LMcClure appreciated the quick responses to the power outage the other day.She had recently visited the DMV and had had a great experience. Be careful on the icy conditions,and with COVID. She was excited about the city's administration, council, and employees for working together and moving forward. Terry encouraged everyone to come out for the Polar Bear Jump this weekend. She congratulated the boys wrestling team for doing well in the state tournament.AVTEC students were back in session. She attended a mayors meeting last week and found it fruitful.The KPEDD Industry Outlook Forum presentations were available on their website. EXECUTIVE SESSION Go into executive session to discuss United Cook Inlet Drift Association and Cook Inlet Fisherman's Fund V.National Marine Fisheries Service and National Oceanic and Atmospheric Administration with City Attorney Brooks Chandler,per AS 44.62.310(c)(3)matters which by law, municipal charter, or ordinance are required to be confidential. Motion (Terry/) Go into executive session to discuss United Cook Inlet Drift Association and Cook Inlet Fisherman's Fund V. National Marine Fisheries Service and National Oceanic and L Atmospheric Administration with City Attorney Brooks Chandler, per AS 44.62.310(c)(3) matters which by law, municipal charter, or ordinance are required to be confidential,following a five minute recess. The city manager, assistant city manager, and city attorney were invited to stay. Motion Passed Unanimous Consent Council recessed the meeting at 9:55 p.m. Council resumed the meeting at 10:00 p.m. Council went into executive session at 10:00 p.m. Council came out of executive session at 10:37 p.m. ADJOURNMENT The meeting was adjourned at 10:37 p.m. . / illir...- L //I • /, /,J K- '' s , „ _ :renda Ballou,,. 1\cc. ....."••••••.,'4 'sue misty Terry City Clerk :: V�•'c,0311- mg/'s 4 0 Mayor . •�' a (City Seal) r F SEAL * i cr.'•..• �,1....��Q. „ti,,�F OF�A��.•