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
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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
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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.
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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
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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.
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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
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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
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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- ,,,
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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.
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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.
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