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HomeMy WebLinkAbout03112024 City Council MinutesCity Council Meeting Minutes Volume 42, Page 467 City of Seward, Alaska March 11, 2024 CALL TO ORDER I The March 11, 2024, 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 MeClure, presiding, and John Osenga Randy Wells Robert Barnwell Mike Calhoon Kevin Finch Julie Crites comprising a quorum of the Couneil; and Kat Sorensen, City Manager Kris Peck, City Clerk Jodi Kurtz, Deputy City Clerk I Excused - Crites Absent - None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Karen Corrigan, inside city limits, spoke as a private citizen. Corrigan was opposed to Resolution 2024-021 and the Matanuska Electric Association (MEA) contract. Corrigan felt the money could be better spent increasing the salary for the city’s Electric Utility Manager. Corrigan was also opposed to Resolution 2024-016 to give Electric Power Systems (EPS) any additional money because EPS were already being paid over 3 million dollars for this Fort Raymond Substation project. Sean Corrigan, inside eity limits, spoke in opposition to Resolution 2024-021 and the MEA contract. Corrigan said the people had already voted no to sell the electric utility. He felt there were too many eity functions being outsourced. Bruce Jaffa, outside city limits, noted the Port and Commerce Advisory Board (PACAB) had two vacant seats and encouraged people to apply for the board. Jaffa provided an update on PACAB’s latest meetings as well as the PACAB Heat Loop project. On another topic, Jaffa said electricity was not cheap anywhere in the state of Alaska. I City Council Meeting Minutes Volume 42, Page 468 City of Seward, Alaska March II, 2024 Rhonda Hubbard, inside city limits, spoke to newest utility bill that reflected the $0.06 cent rate increase. Hubbard urged council to revisit the topic and figure out how to best serve the year-round residents.I Tim McDonald, inside city limits, spoke to the utility rate increase. He recalled missed opportunities over the past decade where the city could have improved their electric policy. However, there was one solution that had the potential to solve everything: Include water generators in the new Lowell Creek Diversion Tunnel to supply power to Seward. It was a once- in-a-century opportunity to power the entire town solely from the tunnel. Kari Boulden, outside city limits, spoke in support of Resolution 2024-021 and the MEA contract. Boulden was currently a Field Engineer for the city and said the Electric Department would greatly benefit from the MEA contract. Boulden thanked city administration for their support since the former utility manager had left the department. Boulden didn’t think the MEA contract would conflict with local job hiring for the management positions. On a related topic, Boulder questioned the last time the electric rates were raised. APPROVAL OF AGENDA AND CONSENT AGENDA Approval of Agenda and Consent AgendaMotion (OsengaAVells) Calhoon removed Resolution 2024-017 and 2024-019 from the consent agenda. IMotion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the February 26, 2024, City Council Meeting Minutes Resolution 2024-016: Authorizing The City Manager To Contract With Electric Power Systems For Recloser Configuration And Integration in the Fort Raymond Substation In A Not To Exceed Amount Of $33,855 Resolution 2024-018: Authorizing The City Manager To Complete A Change Order To PO# 3375 To Include The Premier Spots In The Resurrection Campground For Resurfacing And Appropriating Funds In The Amount Of $29,745.37 Resolution 2024-020: Placing Urbach’s Clothier, Standard Oil Manager’s House And Alaska’s Point Of View Quonset Huts On The Seward Register Of Historic Places Appoint Carol Griswold to the Planning & Zoning Commission with a term set to expire February 2027 SPECIAL ORDERS, PRESENTATIONS, AND REPORTS IProclamations and Awards - None City Council Meeting Minutes Volume 42, Page 469 City of Seward, Alaska March II, 2024 City Manager Report I City Manager Kat Sorensen introduced Daniel Meuninck as the new Community Development Director. Community Development Director Daniel Meuninck introduced himself to City Council and looked forward to being a part of the community. Sorensen provided a laydown on the current electric rates and said it would be posted on the city’s Legislative History site. She encouraged the rate payers to reach out and discuss any issues with the City Manager’s office. On another topic, Sorensen provided a summary of the recent lobbying trip to Juneau along with Mayor Mclure, Vice-Mayor Osenga, and Harbormaster Norm Regis. Overall, the trip was a big success. Wells inquired about the city outsourcing job positions and asked if the city could pay more and increase the salaries. Sorensen said each department head was locked into a city-wide graded wage scale. The Electric Utility Manager salary was low in comparison to what that position would pay in the private industry. Barnwell suggested a long-term contract for a utility manager as a work-around for the low salary offered by the city. I City Clerk Report City Clerk Kris Peck said he included an interesting Seward ordinance from World War II to encourage people to explore the city’s Legislative History site. City Attorney Report City Attorney Sam Severin provided an update on litigation that the city had been involved in recently. Severin noted a short-term rental permit had been denied, appealed and then a settlement agreement was reached on the day of the appeal hearing. Severin explained how the law firm utilizes two attorneys in the event of an appeal hearing. One attorney worked with the Planning & Zoning Commission while the other attorney worked separately with Community Development. Other Reports and Announcements Presentations - None PUBLIC HEARINGS - None UNFINISHED BUSINESS - None I NEW BUSINESS City Council Meeting Minutes Volume 42, Page 470 City of Seward, Alaska March 11, 2024 Resolutions IResolution 2024-021: Authorizing The City Manager To Enter Into A Management Agreement With Matanuska Electric Association (MEA) And Appropriating Funds Approve Resolution 2024-021Motion (Osenga/Calhoon) Sorensen provided an overview of what services would be included with the MEA contract. She introduced Brian Hickey and Edward Jenkins from MEA and said they were available for any questions. Brian Hickey from MEA introduced himself to council and provided a summary of his background. He felt he could help bring the electric utility along here in Seward until things got settled. Barnwell wanted to clarify how council could be sure the city wasn’t being overcharged for this service. Hickey responded that the invoices were standardized and transparent. Sorensen added that MEA was a non-profit organization, and they were not intending to generate a profit. Wells said the contract included a termination policy with a 4-week notice. He noted the maximum dollar amount was not the actual contract amount. I Edward Jenkins introduced himself as the Chief Energy Transformation Officer at MEA. Jenkins said MEA would be here to support the City of Seward during this phase. Calhoon noted the two job vacancies in the Electric Department which would offset a portion of the cost of the MEA contract. Calhoon said the city was also getting a whole organization and all their expertise as a component of this management agreement. Wells asked if MEA was helping with finance and budget aspects of the city. Hickey said they would be managing the day-to-day operations and could also offer financial recommendations if needed. Sorensen noted financial guidance was mentioned in the contract. Barnwell felt this was an interesting opportunity to determine how well the utility had been managed and get a third-party perspective. Yes: Osenga, Calhoon, Barnwell, Wells, McClure Motion Passed No: Finch Resolution 2024-017: Authorizing The City Manager To Purchase A New John Deere Gator HPX815E From Craig Taylor Equipment For A Total Of $26,362.03 With A 10% Contingency And Appropriating Funds IApprove Resolution 2024-017Motion (OsengaAVells) City Council Meeting Minutes Volume 42, Page 471 City of Seward, Alaska March 11, 2024 Sorensen said the Parks & Recreation Department wanted the Gator as a replacement for the two electric vehicles that had been used for parking enforcement. These two electric vehicles were taken out of service and had been sold recently at a surplus auction. Sorsen also explained the parking enterprise fund and the motor pool fund in relation to this vehicle. I Calhoon said he pulled this resolution from the consent agenda because he wanted the explanation of the enterprise fund and motor pool fund. He asked if the funds from the electric vehicles surplus action went back into the motor pool fund. Sorensen confirmed that was correct. Wells asked if this Gator was an electric vehicle. Sorensen responded that the Gator was not an electric vehicle. UnanimousMotion Passed Resolution 2024-019: Authorizing The City Manager To Purchase A New 2024 John Deere 772G Road Grader From Airport Equipment Rental For A Total Of $499,498.00 Plus 10% Contingency Utilizing The Sourcewell Contract And Appropriating Funds Approve Resolution 2024-019Motion (Osenga/Calhoon) Public Works Director Doug Schoessler said the current road grader was over 20 years old and way past its useful life. The current road grader had been re-welded and re-fitted numerous times. A road grader was a vital piece of equipment for snow removal and clearing streets. He noted the differences between Volvo and John Deer equipment. Schoessler hoped to obtain the new equipment as soon as possible. I Sorensen confirmed the Public Works had been paying for this new road grader in the motor pool fund. UnanimousMotion Passed Other New Business Discuss moving the April 2024 council meeting dates to April 15 and April 29 due to staff travel. Sorensen explained the situation that arose due to staff travelling, and recommended shifting the council meeting dates accordingly. There was no objection from the City Council. Discuss rescheduling the City Manager’s 6-month evaluation (Currently scheduled for March 26, 2024) Finch mentioned he would be gone and requested the evaluation could be conducted on April 15, 2024. Barnwell and Wells both noted they would be out for the April 15 meeting. It was difficult to find a new date that would work for everyone. Barnwell felt the 6-month timeframe for the initial evaluation should be followed as closely as possible.I City of Seward, Alaska March 11, 2024 City Council Meeting Minutes Volume 42, Page 472 Keep the City Manager’s 6-month Evaluation on March 26, 2024 Motion (OsengaAVells) I Yes: Barnwell, Wells, Osenga, McClureMotion Passed No: Finch, Calhoon INFORMATIONAL ITEMS AND REPORTS Other Items 1) Upcoming City Council Meetings - Tuesday, March 26, 2024, at 7:00 p.m. (Monday is Seward’s Day Holiday) CITIZEN COMMENTS Bruce Jaffa, outside city limits, spoke in support of Sorensen as City Manager in regard to her upcoming evaluation. Jaffa said that Sorensen was doing an exceptional job. Jaffa said he was glad the city still owned the electric utility, but he supported the MEA contract. Jaffa spoke to the challenges of harnessing power from water. He did not think the U.S. Army Corps of Engineers should modify the new tunnel project to include hydro power. Jaffa said tonight’s council meeting was very well thought out. The questions and explanations to the public were on point. Lastly, Jaffa thanked Sorensen for her laydown on electric rates and explanations.I COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Sorensen thanked the MEA team for traveling to Seward tonight. Barnwell thanked Sorensen for her work on the MEA contract. He was excited to hear MEA’s viewpoints of the city’s electric utility. Finch thanked MEA for driving down and said he had heard good things about them. Wells thanked MEA and the City Manager for their work on this contract agreement. He wanted the public to know that MEA would help make sure the electric utility was one worth owning. Calhoon was looking forward to a work session with MEA once they got settled. He thanked everyone for their good input tonight. He noted March 15, 2024 was the 105'’’ birthday for the American Legion. Lastly, Calhoon wished everyone a safe and happy St. Patrick’s Day. Osenga thanked MEA for their trip to Seward. He thanked everyone for their comments tonight and different viewpoints. Osenga summarized his recent lobbying trip to Juneau and said the meetings and conversations were great. He said that Sorensen did a great job in Juneau.I City of Seward, Alaska March II, 2024 City Council Meeting Minutes Volume 42, Page 473 McClure echoed previous comments about MEA. She welcomed Carol Griswold as the latest addition to the Planning & Zoning Commission. McClure thanked the city for the opportunity to travel to Juneau. She said her trip went very well and she had many personal contacts there. While in Juneau, McClure was impressed with Sorensen’s ability to answer questions on the fly on a variety of topics. Lastly, McClure encouraged the public to apply for the vacancies on Planning & Zoning and PACAB. I ADJOURNMENT The meeting was adjourned at 8:34 p.m. Kris Peck City Clerk Sue McClure Mayor (City Seal) SEAL I / I