HomeMy WebLinkAbout11132023 City Council Minutes City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42, Page 417
CALL TO ORDER
The November 13,2023 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 Randy Wells
Mike Calhoon Robert Barnwell
Kevin Finch Julie Crites
comprising a quorum of the Council; and
Kat Sorensen, City Manager
Jason Bickling, Assistant City Manager
Kris Peck,City Clerk
Sam Severin, City Attorney (telephonically)
Excused—None
Absent—None
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Skip Reierson, inside city limits, spoke to the Capital Improvement Projects (CIP) being
a wish list. One project in particular was the 115kV transmission line that had been on the list for
over 10 years. He encouraged council to look at old CIP lists as well as the reasoning behind the
lists.
Gary Seese,inside city limits, spoke in support of resolution 2023-124. He had experience
in designing the remodel of Brown & Hawkins upper structure. A fire prevention system was
greatly needed in the building.
Cheryl Seese, inside city limits, spoke in support of resolution 2023-124. A sprinkler
system was essential for a historic jewel such as Brown & Hawkins. If a fire broke out in the
building it could spread to other buildings around it.
Brad Snowden, inside city limits, spoke to issues he had been having with his electricity
being shut off. He spoke highly of a previous city manager who was now in Whittier.
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42, Page 418
Anthony Kniffen,inside city limits, spoke to public access of navigable waterways inside
city limits.
Bruce Jaffa, outside city limits, provided an update on the heat loop ad hoc committee.
Jaffa also spoke to recent power outages, highway maintenance issues, current employee wages
and thanked military veterans for their service.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Osenga/Calhoon) Approval of Agenda and Consent Agenda
Calhoon requested Resolution 2023-123 be pulled from the consent agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Approval of the October 23, 2023,City Council Meeting Minutes
Resolution 2023-121: Authorizing The City Manager To Purchase A Replacement Vehicle In The
Form Of A Chevrolet Silverado Crew Cab 4X4 Chassis With A Flatbed And Crane To Replace A
2015 Ford F350 4X4 Truck With Crane For The Harbor Department And Appropriating Funds In
An Amount Not To Exceed$83,186.31
Resolution 2023-122: Authorizing The City Manager To Enter Into A Purchase Agreement With
LiftOff LLC For A One-Year Renewal Of The City's Microsoft 365 Licensing Subscription, In
The Amount Of$46,000.80
SPECIAL ORDERS,PRESENTATIONS,AND REPORTS
Proclamations and Awards
Proclamation for the Seward Seahawks Girls Cross Country Team was read by Mayor McClure
and accepted by Coach Rachel Dow.
Proclamation for Veterans Day was read by Mike Calhoon and accepted by Kevin Finch.
City Manager Report
City Manager Kat Sorensen reported on the power outage that had recently affected
Seward and the surrounding areas. The backup generators ran for approximately three full days.
She thanked the city electric department and all others involved in getting the power restored.
City Clerk Report
Deputy City Clerk Jodi Kurtz provided an update on the recent Seward delegation trip
to Obihiro, Japan. Overall, the visit was a big success, and everyone had an amazing experience.
There would be an official 10-minute presentation at the November 27, 2023 Council Meeting.
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42,Page 419
City Attorney Report
City Attorney Sam Severin (telephonically) provided an update on a short-term rental
litigation that was ruled in the city's favor. Severin also noted the abandoned vessel lawsuit was
still ongoing and making slow progress.
Other Reports and Announcements
Kenai Peninsula Economic Development District(KPEDD) Quarterly Report by Tim Dillon
Presentations
Johnston was unable to travel due to poor road conditions. Her presentation will be re-scheduled
to December 11, 2023.
Shauna Potocky presented on Land Exchange and Conservation Easement Seward Airport
Council recessed the meeting at 8:03 p.m.
Council resumed the meeting at 8:09 p.m.
PUBLIC HEARINGS
Resolutions Requiring Public Hearing
Resolution 2023-119: Authorizing the City Manager to Enter into and Execute the Purchase and
Sale Agreement with 4JBC, LLC for the Sale of 18,432 square feet of Lot 2 Block 4, Fourth of
July Subdivision,Seward Marine industrial Center,Kenai Peninsula Borough,Raibow Replat,Plat
No. 2015-14 Seward Recording District, Third Judicial District, State of Alaska in the Amount of
$65,000
Motion (Osenga/Calhoon) Approve Resolution 2023-119
Harbormaster Norm Regis said that Patrick Marrs had owned the adjacent property since
2003. Marrs wanted to expand to have marine trade offices,but he didn't want to build on a piece
of property that he didn't own.
Sorensen added that the tax revenue and property taxes would outweigh the lease payments
in the long run.
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Becky Dunn, inside city limits, thought it would be great if the City of Seward could get
a first right of refusal on any property that was being sold.
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42, Page 420
No one else appeared and the public hearing was closed.
Regis clarified the first right of refusal in regard to this land sale.
Motion Passed Unanimous
Resolution 2023-120: Amending The 2024 Electric Rates Tariff To Incorporate
Recommendations From The 2023 Rate Study To Set Electric Rates At A Level To Meet The
Utility's Revenue Requirements Over The Next Three Years
Motion (Osenga/Calhoon) Approve Resolution 2023-120
Sorensen spoke to Mike Hubbard's credentials as a rate consultant. She said Hubbard
would be here tonight to speak to any questions
Notice of the public hearing being posted and published as required by law was noted and the
public hearing was opened.
Skip Reierson,inside city limits,said there were no supporting documents in the rate study
to justify the increase. He wanted to see more backup information in the report.
Bruce Jaffa, outside city limits, spoke to the Seward Electric Utility Ad Hoc Committee
(SEUAHC) recommendations on the rate increase. He recommended a smaller increase in the
rates.
Lori Draper, inside city limits,encouraged a smaller increase for electrical rates.The rate
study was not detailed enough to justify such a high increase. Draper wanted Matanuska Electric
to take a look and make recommendations.
Becky Dunn, inside city limits, wanted to see the city jobs advertised in more places
online. Having a full staff and less overtime for the electric linemen would reduce costs. One
Electric Department operator was currently in the hospital and another lineman had just put in his
resignation notice.
Megs Testarmata, inside city limits, said the SEUAHC disagreed with the findings of
Hubbard's rate study. She lamented the SEUAHC never got a proper work session with the
council. Testarmata predicted the customer base would not be happy with a $0.06 cent increase.
She encouraged council slow down and do an increase between around $0.03 cents and then
reevaluate the situation.
Darryl Schaefermeyer, inside city limits, suggested that a reasonable rate adjustment
would be no more than$0.03 cents at a time.The community could not absorb a 50%rate increase
at this time. Many locals were on a fixed income and this rate increase would be difficult. He
questioned if Seward needed such a drastic rate increase. Schaefermeyer also noted the Alaska
Sealife Center might not survive with this rate increase.
City of Seward,Alaska City Council Meeting Minutes
November 13,2023 Volume 42, Page 421
Phil Kaluza, inside city limits, echoed previous comments. He spoke in support of the
SEUAHC findings. The current rate study had too many unknown variables. Kaluza didn't think
there was a desperate need to raise the rates at this time. He had no question that Hubbard's rate
study model was excellent. However, the information that Hubbard was given to work with was
questionable. Kaluza felt there was better data available for rate studies.
Rhonda Hubbard, inside city limits, was opposed to raising the rates and questioned the
rate study's scenarios.She felt the$0.06 cent increase would not go over well with the community.
Hubbard said the SEUAHC was under appreciated and underutilized by City Council. Hubbard
felt there were better scenarios for small utilities such as Seward.
No one else appeared and the public hearing was closed.
Motion To Amend (Calhoon/Finch) Amendment To Lower The Increase From
$0.06 Cents To $0.03 Cents per Kilowatt
hour
City Council discussed the possible scenarios if the increase was dropped from $0.06 to $0.03
cents.
Calhoon Withdrew His Motion With No Objection From Council
Motion To Postpone (Calhoon/Wells) Postpone until the December 11,2023 City
Council Meeting
Motion Passed Unanimous
NEW BUSINESS
Resolutions
Resolution 2023-124: Supporting The Brown & Hawkins Fire Suppression System Project For
The Historical Building Located At 205,207&209 Fourth Avenue And Recommending The City
Manager Accept And Administer Federal Funding Provided By The Alaska Department Of
Natural Resources
Motion 0 Approve Resolution 2023-124
Sorensen invited Historic Preservation Commission Chair Tanguy Libbrecht to
introduce the resolution.
Libbrecht said the Historic Preservation Commission was charged with making
recommendations to city council. Libbrecht noted the 2% fee would cover administrative costs for
the City of Seward. He said the Brown & Hawkins owner Iris Darling would cover $300,000 of
the sprinkler project and the $50,000 was the grant portion. Lastly, he made a correction that
Resurrection Bay Historical Society were not sponsoring the project,but rather had offered a letter
of support.
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42,Page 422
Wells asked administration for guidance. Sorensen said CLG grants were only available to
cities with certified local governments. If the grant was approved,the funds would be given to the
Darling Family Trust. There was a precedent being set using federal funds for a private business
that deserved consideration. Sorensen said it would open the door to many buildings around town
that were on the National Register of Historic Places.
Osenga asked the city attorney if there was any liability involved in this scenario. Severin
responded there might be liability in the financial aspect, but not in regard to a fire or issues with
the sprinkler system itself.
McClure noted the $50,000 would not complete anything because the cost itself included
an additional $300,000. There would not be a sprinkler system in place simply due to this grant.
Calhoon confirmed that the project had to be completed prior to receiving the$50,000.
Crites asked if an uncompleted project would affect Seward's status as Certified Local
Government. Sorensen responded that it would leave a blemish.
Osenga said he understood the idea behind the sprinkler system but didn't believe that the
city administration should be involved with the private business.
Motion Failed Yes: Calhoon,Wells,Finch
No: Barnwell, Crites,Osenga, McClure
Resolution2023-123: Authorizing The City Manager To Purchase Four(4) 2024 Chevrolet Tahoe
Police Package Vehicles From Swickard Auto Group Under The State Of Alaska Fleet Vehicle
Contract, With Associated Upfitting And Police Specific Equipment, Radio Equipment, Spare
Wheels, and Studded Tires In An Amount Not To Exceed A Total Cost of$311,838.20
Motion(Osenga/Calhoon) Approve Resolution 2023-123
Sorensen invited Police Chief Alan Nickell to introduce the resolution.
Nickell spoke to the aging fleet of vehicles in the police department. Traditionally the
Police Department would drive their vehicles into the ground until they were absolutely worthless.
By auctioning off the cars while they were in good shape the city could recoup some of their costs.
Nickell had stopped installing light bars on top of the vehicles to increase their re-sale value.
Nickell provided a backstory on the budget for these cars and the necessity of safe police vehicles.
He had heard people in the community saying the Police Department didn't even have enough
officers to drive those cars. However, there were two officers in training that would get two of the
vehicles very soon. Nickell was also considering hiring temporary officers. Nickell understood
there was sticker shock of seeing the full dollar amount up front.
Calhoon said he supported the resolution and the reason he pulled this resolution from the
consent agenda was to hear the explanation for the official record.
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42,Page 423
Finch asked how many older police vehicles would be kept for backup. Nickell said all the
older police vehicles would be auctioned off.
Motion Passed Unanimous
CITIZEN COMMENTS
Darryl Schaefermeyer, inside city limits, hoped that a council member who voted in
opposition to the Brown & Hawkins matter would reconsider. In respect to the electric rate
increase, Schaefermeyer wasn't aware of any impending deadlines and didn't see any rush. The
general fund reserves could amply cover any bond requirements. In regard to the new police
vehicles, Schaefermeyer wanted the police officers to have the very best gear and vehicles.
Skip Reierson, inside city limits, thanked veterans for their service. He thanked the
Electrical Department for their work during the recent power outage. Reierson felt misled by the
topic of tonight's work session and thought the discussion would have focused on the rate study.
He thanked council for postponing the rate increase to the December meeting.
Cheryl Seese, inside city limits, hoped the SEUAHC could have a work session with
council prior to the December meeting.
Bruce Jaffa, outside city limits, spoke in support of city manager Kat Sorensen for her
performance tonight with quick and clear responses.Jaffa provided some history on the underbuild
and distribution of Chugach Electric's powerlines along the highway. Jaffa noted that he owned a
historic building across the street from Brown & Hawkins. He was surprised council did not
support the pass-through grant for the Brown & Hawkins sprinkler system. Lastly, Jaffa was in
support of the smaller rate increase that was discussed tonight.
Megs Testarmata,inside city limits,was disappointed in council's decision not to support
the Brown&Hawkins sprinkler system. On another topic,she had a variety of questions about the
electric utility that she hoped could be answered. Lastly, she wanted to look at other revenue
sources for the electric utility.
Becky Dunn,inside city limits,brought in some city electric bills to use as an example for
what the rate increase might look like. On another topic, Dunn noted the Alaska Sealife Center
was doing free Thursdays for locals this winter.
COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN
COMMENTS
Sorensen thanked Tim Dillion for his service with KPEDD. She encouraged citizens to
email in questions about the rate increase.
Crites thanked everyone who spoke. She was glad that council postponed the rate increase
and looked forward to getting more information. In regard to Brown & Hawkins sprinkler system,
City of Seward,Alaska City Council Meeting Minutes
November 13, 2023 Volume 42,Page 424
Crites noted the amount of additional funds required for the project to be completed. She wanted
more proof that the Darling Trust fund had all the funds required to complete the project.
Barnwell said he had a great trip to Japan and experienced such graciousness and
generosity from the people of Obihiro.He hoped the Sister City Exchange Program would continue
in the future. Barnwell congratulated the Seward Seahawks Girls Cross Country Team on their
championship. Barnwell thanked Tim Dillion for his service with KPEDD and thanked Shauna
Potocky for her presentation on the airport. Barnwell supported Brown and Hawkins but was
concerned about the precedent that would be set for private businesses.Lastly, Barnwell was open
to a council work session with the SEUHAC.
Finch congratulated the Seward Seahawks Girls Cross Country Team. He thanked Tim
Dillion and Shauna Potocky for the presentations. Finch thanked Mike Hubbard for driving down
to be here to answer questions about the rate study. Finch noted it had been an interesting meeting.
Calhoon thanked the presenters tonight and he wished Tim Dillion the best on his future
endeavors. Calhoon was interested to see if the failed Brown & Hawkins resolution would be
reconsidered by another council member. On another topic, Calhoon noted the American legion
served meals on Thanksgiving and delivered Thanksgiving meals as well.
Osenga congratulated the Seward Seahawks Girls Cross Country Team. He thanked Mike
Hubbard for driving down to attend the meeting. Osenga thanked the Electric Department and
everyone who helped restore the power. He thanked Tim Dillion on KPEDD and wished him luck
in his future endeavors.
McClure echoed previous comments. She announced that her mom had recently passed
away and there would be a funeral in December. On another topic,McClure wished there had been
a girls cross country running team when McClure was in high school.
ADJOURNMENT
The meeting was adjourned 10:11 p.m.
U )ic
Kris Peck Sue McClure
City Clerk Mayor
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