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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 s5A,PciikccIlkt.e. renda Ballow Sue McClure City Clerk Mayor (City Seal) omit .ss ee.4 SE{�jt4s., a • b 0 1: • '• SEAL • F. ,