HomeMy WebLinkAbout07242023 City Council Minutes City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 362
CALL TO ORDER
The July 24, 2023 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
John Osenga Liz DeMoss
Mike Calhoon Randy Wells
Kevin-Fineh Robert Barnwell
comprising a quorum of the Council; and
Norm Regis, Acting City Manager
Stephen Sowell, Assistant City Manager
Brooks Chandler, City Attorney
Alan Nickell, Police Chief
Kris Peck, City Clerk
Jodi Kurtz, Deputy City Clerk
Excused—Finch
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Skip Reierson, inside city limits, wanted to address the role that council played in the
decision to sell the electric utility. Reierson felt the opportunity for public input was deprived due
to the number of executive sessions. He would have preferred the work session format to include
more feedback from the public.He requested Resolutions 23-088 and 23-089 be tabled indefinitely
and instead develop a new plan to sell the electric utility. He was opposed to lowering the three-
fifths voter threshold for selling the electric utility.
Kevin Dunham, outside city limits, disagreed with the selection of Homer Electric
Association (HEA) over Chugach Electric for the proposed sale of the electric utility. Chugach
Electric had lower rates and also owned part of the natural gas field. He was opposed to the
executive sessions and wanted more public input.
Bruce Jaffa, outside city limits, spoke in opposition of Resolutions 23-088 and 23-089.
rr.r He felt the three-fifths voting threshold was being changed simply so the city could get what they
City of Seward,Alaska City Council Meeting Minutes
July 24, 2023 Volume 42,Page 363
wanted.The founding fathers all spoke to the important to super majority of the three-fifths voting.
On another topic, Jaffa was surprised no members of city administration or council attended the
first Seward Electric Utility Ad Hoc Committee meeting.
Darryl Schaefermeyer, inside city limits, spoke in opposition to Resolution 23-088 and
Resolution 23-089. There was no crisis or emergency that would necessitate a change to the
Charter. Schaefermeyer didn't think that HEA could provide the same level of service as Chugach
Electric.
Sharyl Seese, inside city limits, addressed the parking issues at the Mt. Marathon hiking
trailhead. She had been calling the police to report violators who were blocking emergency access.
Seese said the current signage was inadequate and hoped it could be improved.
Christiana Smith, outside city limits, wanted Resolution 23-083 removed from consent
agenda. She felt the wording regarding children in the workplace was not specific enough. She
encouraged the city to develop family friendly workplace policy.
Carol Griswold, inside city limits,was opposed to amending the Charter to sell the utility
with a simple majority vote. She hoped the newly formed Ad Hoc Committee would be allowed
to finish their work without rushing.Griswold felt that attempting to change the Charter and repeat
attempts to sell the utility was not a wise plan. She hoped council would not support Resolution
23-088 or Resolution 23-089.
Laura Schneider, inside city limits, spoke in opposition to Resolution 23-088 and
Resolution 23-089. She hoped council would give the Ad Hoc Committee enough time to do
complete their mission statement. On another topic, Schneider recommended Action
Memorandum 23-010 be removed from consent agenda.
Casie Warner, inside city limits, requested Resolution 23-083 be removed from the
consent agenda. She felt the city policy about children in the workplace left a lot to be desired.
Lynda Paquette, outside city limits, spoke in opposition to changing the Charter's three-
fifths vote to a majority vote. She didn't think a simple majority vote would be fair to everyone.
Becky Dunn, inside city limits, said the intent of the Kenai Peninsula Borough changing
the election day was to increase voter turnout. On another topic, she was impressed that the new
Ad Hoc Committee had a lot of experts onboard. Dunn said she took a video recording of their
first meeting and uploaded it to the SAKTOWN YouTube channel.The video had already received
90 views which reflected a lot of public interest in the committee. Dunn hoped council would fail
Resolution 23-088 and Resolution 23-089 and give the Ad Hoc Committee a chance to work on
their mission.
Randall Stauffer, outside city limits, said he was a member of the new Ad Hoc
Committee. He found it disconcerting to find out Resolution 23-088 and Resolution 23-089 were
being presented to council tonight. Stauffer found it confusing as to what the Ad Hoc Committee
would be doing with their time if it was a foregone conclusion decision to sell the electric utility.
City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 364
Shannon Thorn, inside city limits, wanted to speak to Resolution 23-083 about children
in the workplace. She didn't think children should be around the public government work
environment because it involved irate citizens. Thorn hoped the city could help with daycare for
city employees.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion(DeMoss/Osenga) Approval of Agenda and Consent Agenda
Wells removed Resolution 2023-83 from the consent agenda.
DeMoss removed Action Memorandum 2023-010 from the consent agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the June 12, 2023 City Council Meeting Minutes.
Approval of the June 26, 2023 City Council Meeting Minutes.
Approval of the July 10, 2023 City Council Meeting Minutes.
Resolution 2023-082: Authorizing The City Manager To Purchase From Belyea Company One
1,200 Amp Siemens Circuit Breaker For Installation In The Spring Creek Substation In A Not-To-
Exceed Amount Of$101,041.00
Resolution 2023-084: Authorizing The Matching Funds In The Amount Of$15,424 Towards The
City's Share Of Funding For The Scheffler Creek Flood Mitigation Project, And Appropriating
Funds
Resolution 2023-085: Authorizing The City Manager To Enter Into A Contract With AK Tree
Service, LLC, For The Purpose Of Clearing Transmission Line Corridors As Assigned By The
City's Electric Utility In An Amount Not To Exceed $350,000
Action Memorandum 2023-009: Authorizing The City Manager To Approve A Services
Agreement With Kelly Connect For The Provision Of Xerox Services
Action Memorandum 2023-010: Opposing Kenai Peninsula Borough Resolution 2023-048,
Regarding The Change In Election Date
Re-Appoint Bruce Jaffa to the Port and Commerce Advisory Board (PACAB) with a term set to
expire in July 2026
Non-objection to the renewal of liquor license#5400—The Cookery,Restaurant/Eating Place
City of Seward,Alaska City Council Meeting Minutes
July 24, 2023 Volume 42,Page 365
Non-objection to the renewal of liquor license #5974 — Mermaid Grotto Cafe, Restaurant/Eating
Place
SPECIAL ORDERS,PRESENTATIONS,AND REPORTS
Proclamations and Awards -None
City Manager Report
Acting City Manager Norm Regis addressed the recent tsunami alert that automatically
triggered warnings on every cell phone.The local sirens did not go off,but cell phones even as far
north as Fairbanks received the alert from the National Weather Service. In the future,this type of
alert could hopefully be narrowed down to target a more specific area.
Police Chief Alan Nickell said both the tsunami sirens and the phone alerts were valid
forms of warning. There were quite a few people who evacuated correctly; however there were
many other people chose to ignore the warning. During the incident, Police Dispatch had every
phone line lit up asking for guidance on what to do. Nickell emphasized that people need to
evacuate without hesitation and there was not time to call and ask questions.Nickell clarified that
the evacuation shelter was the Seward High School and not the hospital. The hospital cannot do
their job to help wounded people if the area is crowded with misplaced evacuees.
Assistant City Manager Stephen Sowell confirmed with council that Saturday, December
2,2023 would be a good day for the council training session.
City Clerk Report—None
City Attorney Report
City Attorney Brooks Chandler noted that grievances were common and issues with
employees does not necessarily reflect poorly overall on the City of Seward.
Wells wanted to make it clear that the city council did as they were advised in regard to
the sale of the electric utility. Both the bidders requested their proposals be confidential. Wells
asked if Chugach was given an opportunity to make a last best offer. Chandler said that HEA
updated their original offer and Chugach Electric did not.
Other Reports and Announcements
Presentations-None
PUBLIC HEARINGS
Ordinances for Enactment—None
City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 366
Resolutions Requiring Public Hearing
Resolution 2023-086: Authorizing The City Manager To Enter Into A Lease With Duchess, LLC
For Lot 5 Block 6 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Seward
Recording District, Third Judicial District, State Of Alaska
Motion (Osenga/DeMoss) Approve Resolutions 2023-086
Regis said the owner was great to work with and he recommended approval of Resolution
2023-086.
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Laura Schinder, inside city limits, spoke highly of the owner and her character.
No one else appeared and the public hearing was closed.
Motion Passed Unanimous
Resolution 2023-087:Authorizing The Maintenance And Operating Agreement With JAG Alaska
Inc. For An Additional Five-Year Period For The Shiplift And Dry Dock Area
Motion(DeMoss/Osenga) Approve Resolutions 2023-087
Regis said the owner had just signed the contract and they were ready to move forward
with this operating agreement.
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Bruce Jaffa,outside city limits,said JAG had brought stability and growth to the shipyard
industry in Seward.
Darryl Schaefermeyer,inside city limits,expressed his support and appreciation for JAG.
No one else appeared and the public hearing was closed.
Wells asked why the resolution was coming to council tonight because it was one day after
the July 23,2023 deadline for renewal of the lease. Regis said JAG was in default for one day,but
the contract was now signed and they were moving forward.
Motion Passed Unanimous
UNFINISHED BUSINESS
Ordinances
City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 367
Ordinance 2023-015: An Ordinance Of The City Council Of The City Of Seward, Alaska,
Amending Seward City Code Title 6—Purchasing, Contracts And Professional Services For The
City Of Seward Recodification Project. This ordinance had a public hearing on June 12, 2023,
and was postponed to July 24, 2023
Motion (Already on the floor) Enact Ordinance 2023-015
Regis said the original ordinance was unfortunately introduced with a lot of errors and
would require several amendments to correct.A substitute ordinance had been provided a laydown
with all these corrections.
Motion (McClure/Wells) Enact Substitute Ordinance 2023-015
Motion Passed Unanimous
Council recessed the meeting at 8:14 p.m.
Council resumed the meeting at 8:19 p.m.
NEW BUSINESS
Resolutions
Resolution 2023-088: Submitting The Question Of Amending Seward City Charter Chapter 13.4
Disposal Of Municipal Utility Plants And Utility Property At A Regular Election In And For The
City Of Seward On October 3, 2023
Motion (Osenga/Wells) Approve Resolution 2023-088
Wells said he did research on the three-fifths super majority and asked if this was a
common practice for other cities. Chandler said he represented around a dozen communities and
was not aware of any other communities that used a super majority to sell a utility. However,
most of these communities also lacked a Charter. There was precedent to using the three-fifths
super majority in Anchorage with regard to raising taxes.
Calhoon said there was nothing else in the Charter than required a three-fifths super
majority vote.
McClure wondered what the reason was behind requiring the three-fifths vote in the
Charter. She felt the citizen feedback convinced her to vote no on this resolution.
Osenga said he would vote in favor of the resolution and send it out to the voters to make
the final decision.
Barnwell said there was a lot of community feedback saying the city was moving too fast
with this sale and the three-fifths rule would be a safeguard against hasty decisions.
City of Seward,Alaska City Council Meeting Minutes
July 24, 2023 Volume 42,Page 368
Calhoon said he had heard from many other citizens who were in favor of removing the
super majority requirement.
Motion Passed Yes: Calhoon,DeMoss, Osenga,Wells
No: Barnwell,McClure
Resolution 2023-089: Submitting The Question Of Selling The City Of Seward Electric Utility To
The Qualified City Of Seward Voters At A Regular Election In And For The City Of Seward On
October 3, 2023
Motion (Osenga/DeMoss) Approve Resolution 2023-089
Regis said that citizens had been asking when this item would come back on the ballot.
Wells said the council did everything they were guided and instructed to do per the request
of the bidders. He wished there was more time for everyone to ask more questions. At least now
the voters would know the rates were going up no matter what.
Barnwell wanted to point out to the Seward Electric Utility Ad Hoc Committee had not
had time to reach a conclusion yet. The decision to sell the utility was ultimately going to be the
voters decision. Barnwell felt the city was rushing into this and it would be wise to hit the brakes
and get more information.
Wells understood that HEA offer was extended through October and beyond that the city
would start all over. The Ad Hoc Committee would continue their work regardless of which way
the voters chose.
Calhoon supported this resolution. He didn't see it as an emergency situation,but rather a
projection of where Seward wanted to be down the road.
DeMoss noted the Ad Hoc Committee's mission was not to make a decision on whether or
not to sell the utility. McClure thanked her for the clarification.
Wells felt it would be beneficial to sell the Seward electric utility because it was falling
apart.
Barnwell didn't think the electric utility was falling apart. He was waiting for the ad hoc
committee to do their research.
Osenga supported the resolution and emphasized that it would be up to the voters to decide.
City Clerk Kris Peck asked if the ballot measure amending the Charter would take effect
immediately in regard to the other ballot measure to sell the utility.Chandler clarified that lowering
the threshold in the Charter would automatically convert the three-fifths requirement to a regular
majority for this election.
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July 24,2023 Volume 42,Page 369
Wells said there would be new rate study information coming out before October that
would be beneficial to the voters. The Ad Hoc Committee would be providing additional
information as well.
Motion Passed Yes: Calhoon, Wells, DeMoss, Osenga
No: Barnwell, McClure
Resolution 2023-083: Adopting Personnel Policy#2023-06: Children In The Workplace
Motion (Osenga/DeMoss) Approve Resolution 2023-083
HR Director Tammy Nickell said she sympathized with the lack of available daycare.
However,there had been several complaints about lack of productivity,crying babies,and children
running loose in the workplace. There were workarounds to alter the employee schedule and take
annual leave as needed. She said the City of Kenai allowed brief visits, while the City of Homer
and City of Soldotna banned children outright from the workplace.
Demoss appreciated the people speaking to this sensitive topic. She would love to see a
HYPER city daycare opened up with the money HYPER was given. However, given the limited
options, DeMoss understood why this policy needed to be in place.
McClure said it seemed reasonable to have this policy in place. She would also love to see
the HYPER money go towards daycare for city employees.
Motion Passed Yes: DeMoss, Osenga, Wells, Calhoon,
McClure
No: Barnwell
ACTION MEMORANDA
Action Memorandum 2023-010: Opposing Kenai Peninsula Borough Resolution 2023-048,
Regarding The Change In Election Date
Motion (Wells/Osenga) Approve Action Memorandum 2023-010
Sowell said the KPB Resolution 2023-048 was an advisory vote and he cautioned against
advisory votes in general due to their wishy-washy nature.
Peck said the other city clerks around the borough were alarmed about changing the
October election date to November. It would require the city to either follow suit or be forced to
buy election equipment to use in October.Another possible issue was competing with the State of
Alaska for the same small pool of election poll workers.
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July 24,2023 Volume 42,Page 370
McClure said the plan to change the election date initially sounded like a good way to
increase voter turnout, but the plan was heavily flawed. The possibility of purchasing election
equipment or competing for poll workers were deal breakers.There might be issues with a partisan
election as well.
DeMoss said she pulled it from consent agenda at the request of a citizen who wanted to
hear more information.
Motion (Wells/Osenga) Approve Action Memoranda 2023-010
Motion Passed Unanimous
OTHER NEW BUSINESS
Discuss Public Works Facility Bond
Regis said a special meeting would be required before August 11, 2023 to meet the 53-day
window for adding items on the October ballot. Administration's recommendation would be to
continue with the R&M design.
Sowell felt it would be a significant property tax burden on the community. He wanted to
do it in a way that did not have such an impact on the taxpayers.
DeMoss asked if property tax increase was the only mechanism. Sowell responded a geo
bond was also an option.
Discuss Current Plans and Updates for Obihiro Exchange
Council felt that citizens from both inside and outside city limits would be eligible for the
exchange. Ultimately, they would be unified as representing Seward.
Summary of Seward Electric Utility Ad Hoc Committee Meeting held on July 17,2023
Regis said that Rob Montgomery would attend future Ad Hoc Committee meetings.
Administration would work on sending the Ad Hoc Committee the documents they requested.
Wells asked how many years of experience Montgomery had in the industry. Montgomery
responded that he had nearly 25 years of experience.
DeMoss did not want to change any of the mission statement. It was something it had
already been approved by council. There was no interest from council in changing the mission
statement.
Montgomery said operational side of the utility was good, but the business side was
lacking. The current salary for the utility manager was too low to entice much interest in the
position.
City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 371
INFORMATIONAL ITEMS AND REPORTS —None
CITIZEN COMMENTS
Christiana Smith,outside city limits,thanked the HR Director for providing background
information on the children in the workplace policy. Smith was not against the policy, but rather
concerned how the policy was written. She felt there was too much leeway for the supervisor to
make exceptions which could result in inconsistencies across departments. Smith was happy to
hear one positive experience from a city employee,but she wasn't convinced it would be that way
for everyone. Smith noted was an article in the most recent Seward Journal that highlighted some
recent accomplishments from HYPER in the field of childcare.
Kevin Dunham, outside city limits, said he had 43 years of experience in the power
system. Seward has had a power system over 100 years. He didn't believe the Seward power
system was falling apart. Chugach Electric had always been a good player and felt that was untrue
to say that Chugach Electric had lied or misrepresented themselves in the bidding process. There
was no way HEA would be able to give Seward better rates than Chugach. Chugach had their gas
fields in Cook Inlet and the Kenai Reserves. Chugach would still own the line that connects to
Seward. No matter what HEA could offer, the power would still go through Chugach's line.
Dunham felt that this father Willard Dunham would be rolling in his grave at the thought of these
two upcoming ballot measures.
Laura Schnider, inside city limits, thanked the city council, the clerk's office and
administration for their work. She was disappointed that HEA and Chugach Electric were allowed
to keep all the materials confidential for such a long time. Schnider felt that after the sealed bids
were received, all presentations and materials should be open to the public. Moving forward,
Schnider wanted to see a new rate comparison over the next 10 years. She hoped new information
would help voters make an informed decision in October. Lasty, she was curious as to how HEA
seemed to know exactly what numbers to submit on their counteroffer.
Darryl Schaefermeyer,inside city limits, asked what the reasoning was behind the whole
idea to sell the electric utility.Enterprise funds were a revenue source to help keep our taxes down.
The electric fund allowed for many projects to be completed over the years while keeping property
taxes down. Over the last 10 years the electric fund had contributed over$20 million dollars. He
wanted an explanation how that divot would be replaced if the utility was sold. The money would
go to the Central Peninsula and Homer and be kept out of Seward. Schaefermeyer felt the contract
was deeply flawed and there was no mention of a stand-by plan. Schaefermeyer hoped for a real
townhall meeting and not just an HEA meet & great. Lastly, he noted that council wrote the
Request for Proposals and should have had complete control of the terms.
Jason Ebberson,outside city limits, said it was a myth that the Seward utility was falling
apart. The utility was running fine and there were no band aids required.
Lynda Paquette, outside city limits, wondered if the city could form a childcare co-op
with other large employers in Seward. On another topic, Paquette wished Rob Montgomery had
attended the initial Ad Hoc Meeting so he could have clarified their questions about the mission
City of Seward,Alaska City Council Meeting Minutes
July 24,2023 Volume 42,Page 372
statement. She looked forward to Rob Montgomery attending the Ad Hoc Committee meetings.
Paquette wanted to verify that administration would supply the Ad Hoc Committee with the
requested documents. She thanked the clerk's office,administration,and council for all their work.
Randall Stauffer,outside city limits,also wondered what drove the city to want to sell the
electric utility. He hadn't seen any evidence to support the decision. Stauffer wondered how the
city would replace the revenue lost from the Seward Electric Utility. If the people vote in October
to sell the utility,then the deliverables of the Ad Hoc Committee would be meaningless. He urged
council to be aware of the perceptions of the rate payer.
Rob Mongomery, inside city limits, emphasized that the utility was not falling apart.
However, repairs were expensive, and the costs of maintenance would impact the rates directly.
One of his fears was not investing into maintenance and technology and then end up in a bad
situation down the road. There were two options: Either rebuild from within or sell to a bigger
utility.
Skip Reierson, inside city limits, thanked council for their service. He noted that Seward
owns the utility and council could have made the conditions of the RFP to be public. There was
no need to let the bidders dictate the terms. Reierson felt a couple of work sessions would have
been fantastic way to get more discussion. He emphasized there was no rush to sell the utility.
Reierson was still waiting to see an actual rate comparison between HEA, Seward Electric, and
Chugach Electric.
Alan Nickell,outside city limits, spoke to the policy regarding children in the workplace.
He simply would not be able to allow a child in the workplace for his police officers. However,
the Police Department found creative solutions with scheduling to make it work. Nickell felt the
answer was more daycare opportunities in Seward.
COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN
COMMENTS
Regis noted it was a tough meeting.
Calhoon thanked everyone for their comments tonight. He made decisions based on the
best information available and what was best for the community. Calhoon clarified that Seward
would still own the utility for an additional 12-18 months after the sale went through.That was the
reason to have the Ad Hoc Committee to continue their work regardless of the sale.
Barnwell said council voted appropriately for approving the childcare policy. He
appreciated Montgomery's candid comments as well as the citizen comments.He noted the electric
sale was a very emotional issue. Barnwell felt strongly that council had done their homework-on
the issue. He found it hard to believe that HEA and Chugach rates would be much different in the
long run.
City of Seward,Alaska City Council Meeting Minutes
July 24, 2023 Volume 42,Page 373
Wells hoped the community members felt their questions were answered and all the
information was available. The number of huge upcoming repairs to the electric utility was the
reason he had said the utility was falling apart.
DeMoss said some of the public comments lately had been offensive and hurtful. She
hoped citizens could treat the mayor and council with respect and refrain from abusive comments
and online bullying.
Osenga said council members took into account all public comments. He felt the Ad Hoc
Committee would be very helpful over the next couple years.Osenga thanked the Obihiro Planning
Committee for all their work and planning for the exchange programs with Japan. He lamented
not being able to travel to Obihiro as originally planned. He had fond memories of traveling to
Obihiro in high school.
McClure thanked the Ad Hoc Committee for their efforts. She thanked Bruce Jaffa for his
continued service on PACAB. She wanted to point out that Seward does not have a strong mayor
form of government. The mayor presided at the meetings and cut ribbons at ceremonies. She did
not appreciate online bullying from citizens.
ADJOURNMENT
The meeting was adjourned at 10:22 p.m.
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