HomeMy WebLinkAbout11282022 City Council Minutes City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42,Page 168
CALL TO ORDER
The November 28,2022 regular meeting of the Seward City Council was called to order at
7:00 p.m. by Mayor Sue McClure.
OPENING CEREMONY
Police Chief Alan Nickell led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Sue McClure presiding and
Liz DeMoss
Mike Calhoon Randy Wells
Kevin Finch Robert Barnwell
comprising a quorum of the Council; and
Janette Bower, City Manager
Brenda Ballou, City Clerk
Excused—Osenga
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Kat Sorensen, inside the city, was Executive Director of the Chamber of Commerce. She
thanked the local businesses and the entire community for a successful Shop Small Weekend event;
over 400 shoppers had signed in,22 stores had signed up for the event,and over 327 sales had been
reported. She appreciated the city having the Christmas Tree Lighting event on the same weekend
because it made for a more festive and exciting weekend.
Tim McDonald, inside the city, was surprised that the city manager didn't have a report
tonight. There were lots of things happening in the city, including the Lowell Canyon Diversion
Tunnel, cruise ship terminal, and potential utility sale. He wondered what the status of alternative
energy was for the Lowell Canyon Diversion Tunnel;he thought it would be a great opportunity for
hydroelectric power.He said there would be a vote next year to consider selling the electric utility;if
the sale didn't happen,he believed the rates would be increased.He didn't agree with the way things
were being handled in the city,he didn't think anyone was doing their job,and he thought there was
a dereliction of duty.
Carol Griswold, inside the city, said there should be changes made to the Seward Boat
Harbor Plan;she had sent an email outlining many items that she thought she be corrected.As well,
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42, Page 169
she had emailed the city about the burn permit for the slash pile behind the high school; she thought
it was hypocritical for the city to allow burns like that for slash piles. She also wished the Pat
Williams Park tree would be decorated.
Mica Van Buskirk, inside the city, supported the city having a Community Recreation
Center;in two surveys,over 70%of respondents supported having a recreation center. She asked the
city to set aside a piece of land for this specific purpose, and hoped it could be located near the
schools.As well,she hoped council would include this as an item on the Capital Improvement Plan;
there were people in the public poised to start fundraising, and legislators ready to provide support.
The cruise ship terminal would be under construction soon. Revenues had increased, and were
projected to continue rising.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (DeMoss/Calhoon) Approval of Agenda and Consent Agenda
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2022-118,Authorizing the City Manager to Execute R&M Engineering Task Order
No.2734.23.1,Completing Required Survey and Topographic Examination for the New Public
Works Facility, and Appropriating Funds.
Resolution 2022-119, Supporting Alaska Joining the Multistate Nurse Licensure Compact.
Resolution 2022-120, Accepting and Appropriating American Rescue Plan Act (ARPA)
Federal Grant Funds though Coronavirus State and Local Fiscal Recovery Funds (CSLF)in
the Amount of$577,195 For the Purpose of Investment in Water and Sewer Infrastructure.
Action Memorandum 2022-012, Approving Updates to the Seward Boat Harbor Plan.
Action Memorandum 2022-013, Accepting the Port and Commerce Advisory Board's
Recommendations Concerning the 2023-2028 Capital Improvement Plan and Directing the
City Manager to Include the Recommendations in the 2023-2028 Capital Improvement Plan.
Action Memorandum 2022-014, Canceling the December 27, 2022, Regular City Council
Meeting.
November 14, 2022 City Council Special Meeting Minutes.
November 14, 2022 City Council Regular Meeting Minutes.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42,Page 170
Proclamations and Awards
Seward High School Girls' Varsity Cross Country Team won State.
City Manager Report
City Manager Janette Bower said the date for the Community Conversation regarding
housing was changing from February 23 to March 2, 2023. The US Army Corps of Engineers
(USACE) project for the Lowell Canyon Diversion Tunnel was a $185 million project and was
currently in the design phase;this was a USACE project,and the city received updates from USACE
periodically.The Royal Caribbean Cruise Line was working directly with the Alaska Railroad,and
the city supported Royal Caribbean's presence in Seward. Holiday lights were going up all over
town;Bower appreciated council's support and employees'time and effort to volunteer their time to
help.
Harbormaster Norm Regis said he received an email from the US Coast Guard (USCG)
notifying him that the USCG would soon be sending an offer to the city to purchase land across the
bay at the Seward Marine Industrial Center(SMIC).
Public Works Director Doug Schoessler reported that, at the library, there had been a
broken pipe over the boiler; issues could be traced back to the original installation. There were
emergency repairs made; some parts had to be replaced,portions of the wiring in the electric panel
had to be replaced,and water leaks had to be stopped.Both boilers at the library were up and running
now.There remained a lot of maintenance that had to be done in the library building,and Schoessler
suggested that an annual inspection be performed.
DeMoss wondered if the city could go back to the original contractor. Schoessler said it had
been ten years, and he didn't believe the warranty was valid; also, the contractor may not be in
business anymore.
In response to Barnwell, Schoessler said years ago there had been some roof issues at the
library, and those had been repaired under warranty.
Calhoon liked the new format for the human resources report in the city manager report.He
noticed that the corporal position in the Seward Police Department would be defunded for 2023 and
2024, and thought the finance director position was also supposed to be defunded in 2023. In
response, Bower confirmed the finance director position was defended in the 2023 budget.
DeMoss wondered what the plan was for keeping fire hydrants clear of snow.Bower said the
volunteer firefighters would help as they could,as well as the public works department.Bower said
she would be trying to hire a temporary laborer to help.
City Clerk Report—None
City Attorney Report—None
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42,Page 171
Other Reports and Announcements—None
Presentations—None
PUBLIC HEARINGS
Ordinances for Enactment
Ordinance 2022-015, Amending the Land Use Plan to Rezone Proposed Tract B, Hemlock
Subdivision,from Institutional(INS)Zoning District to Park(P)Zoning District.
Motion (DeMoss/Caihoon) Enact Ordinance 2022-015
City Planner Courtney Bringhurst stated this rezone would separate the Forest Acres
Campground from the bike park. Tract B was the bike park and would be rezoned to Park and,
therefore, separated from the campground which was Tract A.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Tim McDonald, inside the city, didn't understand what this ordinance was doing; he also
said his hearing was bad.
111
No one else appeared and the public hearing was closed.
McClure said her understanding was that this ordinance would rezone the bike park property
to Park.
Motion Passed Unanimous
Ordinance 2022-016, Amending Seward City Code; 15.10.140(b)(49) Defmitions, Lodging;
15.10.226(b)Land Uses Allowed,Modifying and Including Additional Regulations Relating to
Lodging, Short-Term Rentals; and 15.10.226 Land Uses Allowed Table.
Motion (DeMoss/Wells) Enact Ordinance 2022-016
Bringhurst said this ordinance would require a fee for Short Term Rental (STR) permits,
according to a fee schedule approved by council. In addition, commercial insurance would be
required because homeowners insurance would not cover a commercial claim. In all principally-
residential districts, including Rural Residential, Single Family, Two Family, Multi-Family, and
Urban Residential, STR would be limited to owner-occupied dwellings;as well,bedrooms for rent
would be limited to 50%with a maximum of three being rented.In commercial districts,excluding
Industrial and including Office Residential, Auto Commercial, Harbor Commercial, and Central
Business, STR would be allowed for no more than five guest bedrooms.
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42,Page 172
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Doug Schoessler,inside the city,was a little confused.He lived in an Auto Commercial zone
and wanted to understand what he could and could not do. He currently had a long-term rental
business license.He wondered what impact this ordinance would have on his property value should
he choose to sell; he wondered if he could sell the house to a new owner for similar use. He had
spoken with his neighbors and there seemed to be confusion throughout.His main concern was the
prospect of losing value in his property if this ordinance passed.
Carol Griswold, inside the city, did not believe the amendments provided in the laydown
had been discussed at a Planning&Zoning Commission meeting. She didn't think that allowing a
long term renter to operate a short term rental business made sense;she believed"owner occupied"
should mean owner, not renter.
Tim McDonald,inside the city,agreed with both previous speakers.He thought the city was
restricting property owners' use of their property, and wondered if this was constitutional. He
thought the language in this ordinance was arbitrary and unreasonable.
No one else appeared and the public hearing was closed.
DeMoss had some concerns relating to the auto commercial and commercial zones. She
thought when someone purchased a home in a residential zone, there would be no expectation of
commercial use;but in a commercial zone,the buyer would anticipate that various commercial uses
could happen.
Wells had concerns, as well. Finch concurred.
Bower said council could amend the ordinance tonight, or at any time in the future with
another ordinance.
Motion (DeMoss/Wells) Refer Ordinance 2022-016 back to the
Planning&Zoning Commission for further
analysis of the Commercial and Auto
Commercial districts.
Calhoon said the Planning&Zoning Commission had put a lot of work into this topic. He
agreed that there were some issues that needed to get ironed out;instead of referring this ordinance
back to P&Z,he suggested council have a special meeting to discuss the ordinance and decide what
amendments they wished to make,and then address the amendments at their regular council meeting.
He thought it was important to get a handle on short term rentals in residential areas; he thought
commercial zones were different.
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42, Page 173
Bower suggested having a joint special meeting with P&Z so that discussion could be had,
and then council could make amendments at their regular meeting.
McClure said she would not be comfortable approving this ordinance tonight without having
the opportunity to discuss with P&Z.
The motion was withdrawn with no objection from council.
Motion (DeMoss/Calhoon) Postpone Ordinance 2022-016 to have a joint
special meeting with the Planning &
Zoning Commission to further analyze and
discuss the details of this ordinance.
Wells hoped this meeting could be scheduled soon.
City Clerk Brenda Ballou asked council to consider holding a joint work session with P&Z
rather than a special meeting so that discussion could happen freely, and then council could make
amendments to the ordinance at their regular meeting.
McClure thought if a special meeting was held, definitive solutions could be developed.
Calhoon said having a special meeting would allow the public more input than a work
session because at a work session the public potentially had no input at all; they just had to sit and
listen.
Motion to Postpone Passed Unanimous
Council recessed at 8:14 p.m.
Council resumed at 8:20 p.m.
Resolutions Requiring Public Hearing
Resolution 2022-115,Recommending Kenai Peninsula Borough Approval Of The Preliminary
Replat Of Fort Raymond Subdivision, Replat No. 1, Lot 12A; Located at 911 Hemlock Ave;
Creating Hemlock Subdivision, Tracts A and B.
Motion (DeMoss/Calhoon) Approve Resolution 2022-115
Bringhurst said this resolution would officially replat the Forest Acres Campground separate
from the bike park; the campground would be Tract A and the bike park would be Tract B.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
City of Seward,Alaska City Council Meeting Minutes
November 28,2022 Volume 42,Page 174
Tim McDonald, inside the city,thought the bike park was dangerous and a liability to the
city.
No one else appeared and the public hearing was closed.
Motion Passed Unanimous
Resolution 2022-116,Determining It Is In The Public's Interest,And Necessary,To Proceed
With The Formation Of A Special Improvement District For And Benefitting,Proposed Lots
1-75(T 1N R 1W SEC 33 SEWARD MERIDIAN SW 2013016 GATEWAY SUB ADDN NO 2
TRACTS C4,C5,C6&C7 TRACT C-4) Of The Gateway Subdivision, Accepting The City
Manager's Recommendation To Approve The Developer Reimbursement Application
Received For The Hilltop Properties Improvement District,And Authorizing An Expenditure
In The Amount Of $3,993,000 For Water, Sewer, And Electrical Improvements, Roads,
Paving,And Appropriating Funds.
Motion (Calhoon/Wells) Approve Resolution 2022-116
Bower reminded everyone of the language for the Developer Reimbursement Program(DRP)
that was adopted by council in February,2022;she said the costs provided by the applicants had been
reviewed and determined to be reasonable.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Joe Tougas,inside the city,was one of the applicants for this 26 acre development.He grew
up in that area of town and had fond memories of the neighborhood. He wished to create more
housing for families in Seward.The city's reimbursement program made developing housing more
viable and feasible. He looked forward to seeing more families raise their children in Seward.
No one else appeared and the public hearing was closed.
Calhoon asked for clarification about ARPA funds being used for new infrastructure versus
being used for the maintenance and repairs of existing infrastructure.In response,Bower said ARPA
funds could be used for expansion or replacement purposes; a portion of the city's ARPA funds
would be used for water and sewer expansion.
DeMoss absolutely supported this project and was excited that the Developer Reimbursement
Program was working.
Finch appreciated these developers stepping up.
Barnwell was also excited about this project. He hoped there would be a walking trail
included in the development for children who walked to school.
City of Seward,Alaska City Council Meeting Minutes
November 28,2022 Volume 42,Page 175
McClure was proud of the city's Developer Reimbursement Program.
Motion Passed Unanimous
Resolution 2022-117, Adopting the City of Seward 2023 and 2024 Operating Budget and
Setting the Mill Rate.Note: This is the first public hearing for this resolution; it will come for a
second public hearing and approval on December 12, 2022.
Motion (DeMoss/Wells) Approve Resolution 2022-117
Bower said this resolution would come back on December 12, 2022. She had taken some
notes from the special meeting earlier tonight;she had worked with the department heads to create a
budget that was honest and transparent. One item she was trying to develop was an Information
Technology(IT)Fund.Regarding the Motor Pool Fund,she anticipated bringing something back in
2023.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing was opened.
Kat Sorensen, inside the city, was Executive Director of the Chamber of Commerce. She
appreciated all the council meetings and discussion about the budget. She said the chamber took
great pride and appreciated the opportunity to provide marketing support for the city. Because the
funding the chamber received from the city reflected two years' prior bed tax revenues, the 2022
funding for the chamber had been 65%less than 2021 funding. She was grateful for the proposed
funding of$300,000 in the 2023 budget.
Tim McDonald,inside city limits,wondered if there could be consideration for hydroelectric
power included in the budget in order to take advantage of the Lowell Canyon Diversion Tunnel
project. He believed this would be free power for the city and maintenance would be very low; he
asked the city to speak with the US Army Corps of Engineers about this possibility. Regarding the
Lowell Point Sewage Lagoon, he believed the effluent was polluting Resurrection Bay due to
chemicals from the RV dumps and household waste.
Mica van Buskirk, inside the city, thanked council for their work on the budget. She saw
revenue numbers increasing and wondered what could be done for year round residents. She hoped
that the anticipated$100,000 savings in Parks&Recreation for credit card fees could be put toward
roofing the basketball court,getting preliminary drawings of a recreation center done,or some other
benefit for residents. She encouraged the city to consider what they could do to help or benefit the
community.
No one else appeared and the public hearing was closed.
In response to Finch, Bower said the current mill rate was 3.84.
Motion (Calhoon/DeMoss) Amend Resolution 2022-117 by reducing the
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42,Page 176
Chamber of Commerce funds from
$300,000 to $250,000, and reducing the
Campgrounds revenue budget by$50,000.
Calhoon thought the chamber did a great job, but he thought campground revenues were
projected to be high. The in-kind lease of the derby booth offset by$31,000/year. He wished to be
conservative in revenue projections.
Wells thought the chamber already suffered a reduction and he did not support the
amendment.
Barnwell concurred with Wells,and thought the Seward chamber was the best in the state;
the workload of the chamber had only increased over time.He believed the campground rates would
increase in the future.Barnwell was reticent to reduce the chamber's budget and thought they did an
exceptional job.
Finch wondered why the chamber did not pay for the derby booth. In response, Regis said
there were several leases in which the city did not collect payments beyond$1/year.
DeMoss thought she might support putting a cap on the chamber budget rather than giving
them 50%of the bed tax revenue. She said there were competing interests for bed tax funds.
Wells wondered how much bed tax would reasonably be generated without the chamber's
help.He suggested that the chamber was the reason why the bed tax revenues were so high.He was
impressed that the chamber won awards, even with the reduced budget they had to work with.
Motion to Amend Failed Yes: DeMoss,Finch,Calhoon
No: Wells,Barnwell,McClure
Finch reminded everyone of the suggestion to perform a yearly inspection for the library
building.In response,Bower said there was$52,000 budgeted for the library building;the inspection
could potentially be absorbed in that.
This resolution will come back on December 12, 2022 for a second public hearing and approval.
UNFINISHED BUSINESS—None
NEW BUSINESS
Other New Business
Determine City Council Participation in 2023 State and Federal Legislative Visits.
Council selected McClure, DeMoss, and Barnwell to attend the legislative meetings in Juneau.
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42, Page 177
Council selected McClure, Osenga, and DeMoss to attend the legislative meetings in Washington,
DC.
City of Seward Recreation Center Project.
Finch had done some research on this topic and couldn't find another community with a
comparable population to Seward that had a recreation center. He was concerned that this might
actually harm existing businesses,like gyms. He thought the city should wait to pursue this project
until after the housing situation was more resolved.
Calhoon thought the rest of the Fort Raymond property should be set aside for the possibility
of a recreation center;he suggested the property be set aside as"not for sale"for the next few years
to see if the public and city could identify potential funding sources that did not involve raising
taxes.
Barnwell liked the idea of setting aside the property at Fort Raymond; he struggled with
funding options, and liked the idea of having the public help look for funding sources.
Wells did not believe that private enterprise would fund this project because,in the end,the
recreation center would not pay for itself. He believed the realistic thing to do would be for the city
to pay for it and raise taxes. He knew the public wanted the project,but didn't think it was feasible.
DeMoss was thankful for the second public survey because it made clear that funding the
project was difficult. Her priority at the moment was to have the Parks & Recreation Department
fully staffed to cover the AVTEC gym.
McClure thought it sounded good to set aside property for this project,but wondered how
reasonable it was to save property for an unknown project.
City Clerk's note: Discussion ended and no action was taken.
INFORMATIONAL ITEMS AND REPORTS
Boards and Commissions Minutes—None
Other Items
City Clerk's Travel Report for KPB Office of Emergency Management (OEM) Joint
Information Center/Joint Information System (JIC/JIS) Workshop.
Happy Youth Programs Educational Resources (HYPER)Financials through October,2022.
Providence Financials for June-September, 2022.
CITIZEN COMMENTS
City of Seward,Alaska City Council Meeting Minutes
November 28,2022 Volume 42,Page 178
Mica van Buskirk, inside the city, disagreed that the city could not afford a recreation
center;she firmly believed that it would be an excellent way to consolidate the separate locations and
staff for the Parks&Recreation Department.The feasibility study did not contemplate the feasibility
of funding a recreation center; an analysis would have to be done to consider what expenses were
currently being spent that could potentially be recaptured and put toward a recreation center. The
property at Fort Raymond was the ideal site for a recreation center;there was more consideration that
should be put into this project before the concept got pushed aside.
Kat Sorensen,inside the city,thanked council for funding the Chamber of Commerce. She
looked forward to continuing to support Seward tourism and visitors.
Tim McDonald,inside the city,said he ran a campground for 15 years,and what customers
expected to have was clean bathrooms that were kept up and maintained.He suggested the Jesse Lee
Home property be considered for a recreation center location. He was concerned about the Lowell
Point Sewage Lagoon because he believed the effluent was ruining Resurrection Bay.
Maggie Wilkins,inside the city,thanked all the community members who had been working
so long and so hard on trying to get a community recreation center. She hoped there could be a
compromise that so that the current momentum was not lost.
COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN
COMMENTS
Barnwell appreciated everyone's comments;he supported recreation activities and believed
there was a need for a communal space in this town.
Finch congratulated the girls' cross country team on their win. He and his grandson both
enjoyed the holiday lights. He appreciated the update on the US Coast Guard's interest in Seward.
Wells congratulated the girls' cross country team. He loved the holiday lights going up
around town. He was excited about the Hilltop Properties development. He and his family
participated in Shop Small Weekend and enjoyed it.
DeMoss appreciated the community members who supported a community recreation center
and wanted to maintain the momentum.
McClure congratulated the girls' cross country team. She had been enjoying the holiday
lights in town and looked forward to seeing more lights go up.On Thursday would be a Community
Christmas Party at the Alaska SeaLife Center.Next weekend would be the Holiday Craft Fair at the
cruise ship terminal.
ADJOURNMENT
The meeting was adjourned at 9:45 p.m.
City of Seward,Alaska City Council Meeting Minutes
November 28, 2022 Volume 42, Page 179
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