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HomeMy WebLinkAbout11122024 City Council MinutesCity of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42, Page CALL TO ORDER The Tuesday, November 12, 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 McClure, presiding, and John Osenga Kevin Finch Randy Wells Robert Barnwell Julie Crites Casie Warner comprising a quorum of the Council; and Kat Sorensen, City Manager Jason Bickling, Deputy City Manager Kris Peck, City Clerk Jodi Kurtz, Deputy City Clerk Sam Severin, City Attorney Excused — None Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Lori Draper, inside city limits, commented on the wage study comparisons with other Alaskan communities. She wanted to see a study that included the total comprehensive employment package. Draper addressed the city's struggle to keep employees in year-round jobs. On another topic, Draper questioned if the electric rates could be reduced. Kylee Lambert, inside city limits, spoke to the proposed bed tax increase. Implementing the new rate on January 1, 2025 would complicate the tax process. She spoke to the complications of the reservations for 2025 and recommended the changes take effect on October 1, 2025. She urged council to modify the implementation date. City of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42, Pag Susanne Reider, inside city limits, owned and operated a local hostel. She echoed the previous comments from Kylee Lambert regarding Ordinance 2024-014. Colby Lawrence, outside city limits, spoke in opposition to Ordinance 2024-014. He referred to a laydown that he distributed to the clerk and council. He noted there would be quite a bit of cost and work on the part of the business owners. Nicole Lawrence, outside city limits, spoke in opposition to Ordinance 2024-014. She felt the local businesses would be negatively affected. The tax increase could potentially impact the length of stay in Seward. It would also negatively affect Seward as a winter destination. The administrative burden on local businesses was not considered by the city administration. Tom Tougas, inside city limits, spoke in opposition to Ordinance 2024-014. Tougas referred to a laydown that he distributed to the clerk and council. He cautioned against a kneejerk reaction to increased taxes at the borough level. Billy Wolfe, inside city limits, spoke in opposition to Ordinance 2024-014. She recalled her work history in the lodging industry over the past eight years. She noted that many visitors chose to stay outside of city limits due to the reduced tax rate. The proposed bed tax increase would negatively impact year-round businesses. Bayleigh Smith, outside city limits, spoke about her experience attending the Boys & Girls Club. She noted the outdoor toys and equipment were no longer available and the current selection was very limited. Christiana Smith, outside city limits, spoke about Resolution 2024-062 regarding the Boys & Girls Club. She hoped the resolution would be pulled from the consent agenda and be postponed. Smith noted the lack of an evaluation process for the services to make sure expectations were being met. She was concerned when things were not written down in the contract. Pamela Eiting, outside city limits, spoke in opposition to Ordinance 2024-014. She felt the bed tax increase would be a step in the wrong direction. Katrina Townsend, inside city limits, spoke as a concerned parent of a teenager attending the Boys & Girls Club. She echoed the previous comment about shortage of toys and equipment. The site was under construction which resulted in gaps in service for the teens. Patrick Messmer, outside city limits, spoke to the challenges of living in Seward. The economy would eventually spiral downwards, and the workforce could not afford to live here. Matt Susko, outside city limits, spoke as a police officer for the city. He shared his personal challenges of finding a house in Seward. He hoped for increased wages for city employees. Nancy Hulbert, inside city limits, spoke to the housing challenges in Seward. She had seen desperate workers move into dry cabins and yurts. The City of Seward was in need of people to City of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42, Page work at the utility counter and front-line services. There was a crisis in staffing shortages and the city needed to offer competitive pay. Ristine Casagranda, inside city limits, hoped the bed tax ordinance could be pulled from the consent agenda and discussed. She did not support the additional bed tax increase. However, Casagranda could get behind the increase if there was a funding goal in mind, such as a community center. On another topic, she noted the Alaska Municipal League (AML) website did not feature any job postings for Seward. Shane Hand, inside city limits, spoke as a Seward Public Employees Association (SPEA) union representative. Hand also noted he was a city employee with the Public Works Department. He addressed the struggle of living paycheck -to -paycheck. Hand spoke in support of the people who work in Seward year-round. Michelle Oliver, outside city limits, spoke to the challenges of living in Seward and finding affordable housing. The majority of the homes in Seward were not owned by locals, and that was a major part of the problem. Ryan Anger, outside city limits, noted he was the Deputy Harbormaster. He spoke in favor of the wage increase. Anger had lived in Seward for 25 years and noted it was very difficult to earn a good wage. Mayor McClure relaxed the rules to allow all the public comments to continue until 7: 46 p. m. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/Finch) Approval of Agenda and Consent Agenda Finch requested the following items be removed from the consent agenda: Introduction of Ordinance 2024-014, Resolution 2024-062, and Resolution 2024-064 Motion as Amended Passed Unanimous The clerk read the following approved consent agenda items: Approval of the October 28, 2024, City Council Meeting Minutes Resolution 2024-063: Authorizing the City Manager to Enter into a Service Agreement with Liftoff LLC for One -Year Renewal of the City's Microsoft 365 Licensing Subscription in the Amount of $46,530.00 SPECIAL ORDERS, PRESENTATIONS, AND REPORTS City Manager Report City of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42 Pa e City Manager Kat Sorensen was excited to announce the city had just received a $46 million dollar grant to implement shore power at the Port of Seward. On another topic, the city was in the middle of hiring a new library director. City Clerk Report City Clerk Kris Peck provided an overview of the written report in the packet. There were updates on the Sister City relations with Japan, city business licenses, and local statistics regarding the General Election. City Attorney Report City Attorney Sam Severin Severin left the meeting at 7:40 p.m. and would return at 8:56 p.m. See below for attorney report. Other Reports and Announcements Chamber of Commerce Report by Executive Director Sam Allen Allen recounted her recent experience in Juneau attending the Alaska Travel Industry Association convention. She provided updates on the Winter Weekend and other upcoming chamber events. Lastly, she thanked Council Member Warner for sponsoring the discussion item for a work session with the chamber. Allen summarized how the chamber spent their money. She would appreciate a work session to discuss the partnership with the City of Seward in more detail. PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2024-059: Adopting the City of Seward 2025 and 2026 Operating Budget and Setting the Mill Rate This resolution would have its first public hearing tonight. The second public hearing would be held on November 25, 2024. The final approval was scheduled for December 16, 2024 Motion (Osenga/Barnwell) Approve Resolution 2024-059 Sorensen thanked everyone for participating in the budget work sessions. The budget was a fluid document, and this was the first required public hearing. Sorensen summarized some highlights from the budget process that had contributed to this resolution. 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 12 2024 Volume 42, Page Tom Tougas, inside city limits, referred to his laydown that he had distributed earlier tonight. He spoke about actual sales tax and bed tax compared to the budget. Tougas referenced the Annual Comprehensive Financial Report. He explained how various city administrations over the years had raised electric, water and sewer rates. However, the administration would change and putting the money back into the infrastructure was being forgotten. Tougas urged the city to fulfill their promises before the rates were raised again. Rhonda Hubbard, inside city limits, had been following the budget process. She applauded city administration for laying the budget out to make it easier to follow. There were a lot of numbers and a lot of things to consider including holiday pay and the retirement system. Hubbard hoped to see a more comprehensive study than just the hourly wages. Hubbard wanted to ease up on the expenses to reduce the cost of living in Seward. Becky Dunn, inside city limits, addressed the lack of advertising for local jobs. Advertising with the AML would be a great resource for this community. She spoke to the value of property tax which wasn't often taken into consideration. As a small business owner, she appreciated all the business she received from city employees. Nicole Lawrence, outside city limits, appreciated all the work that was being done on the budget. She appreciated the city employees and the high cost of living in Seward. Lawrence spoke to the high cost of buying or renting a home in Seward. She noted the reasonable rental rates through her real estate company. Lawrence tried to contribute to keeping prices down for renters. Overall, Seward was a very expensive place to live. Lawrence disagreed with earlier statements that police officers would not be able to buy a house in Seward. Wage increases were important, but should not be a detriment to community members who own properties. She encouraged a closer look at the budget. Ristine Casagranda, inside city limits, wanted to bring attention to Skip Reierson's correspondence to city council. She encouraged council to find a way to provide a 3 cent discount year-round on electric rates. There was definitely a way to make that discount happen. Casagranda reminded council that the city owned the hospital building and millions of dollars of medical equipment. She lamented a previous council decision not to pad the MRRF. (Major Repair and Replacement Fund) No one else appeared and the public hearing was closed. Finch mentioned the last budget process was on the conservative side. He would like to see future projections with the sales tax. He supported the wage increase with the sales tax. Bickling spoke to the city infrastructure and future projects. The generator facility was also old and in need of replacement. These items were not currently in the budget, but administration was aware of the issues. Barnwell spoke to aging city buildings and facilities. He didn't feel the city was hoarding cash, but rather thinking ahead to big improvement projects. City of Seward, Alaska City Council Meeting Minutes November 12, 2024 volume 42 Pa e Wells noted his two laydowns that were available at the meeting tonight. He explained he was in the lodging industry and had also reached out to people in the industry. Wells put a lot of time into his research. Sorensen invited Brian Hickey to speak to the electric operating budget. Utility General Manager Brian Hickey addressed the correspondence from Skip Reierson. He explained the electric operating budget, contributions to MRRF, and contracted services. He spoke to Seward Electric being understaffed compared to other utilities. Hickey said that every penny discounted from the rates would lead to a revenue loss of $550,000 dollars. They would have to make cuts to compensate for the lost revenue. Resolution 2024-059 would be carried over to the November 25, 2024 meeting for a second required public hearing. Council recessed the meeting at 8: 50 p.m. Council resumed the meeting at 8: 56 p.m. City Attorney Report City Attorney Sam Severin explained he had to step out earlier in the meeting. He explained that much of the attorney services were covered under a flat rate. Last month in particular was a good month for the city to be operating on a flat rate. He updated council on the McDonald lawsuit and the collection of attorney fees. Severin also provided an update on the abandoned vessel lawsuit. NEW BUSINESS Introduction of Ordinances Introduction of Ordinance 2024-014: Revising Seward City Code Section 5.45.015(A) Hotel/Motel Room Tax — Levy of Tax, to Increase the Hotel/Motel Tax Rate from Four Percent to Eight Percent, Effective January 1, 2025 Motion (Osenga/Wells) Approve the Introduction of Ordinance 2024-014 Sorensen directed council to the packet for more information and clarified this was discussion was for the introduction of the ordinance. Finch thanked Wells for his two laydowns tonight on the topic. Wells explained his laydown and recommended forgoing a bed tax increase at this time. McClure asked what administration what they would do if this ordinance failed. Sorensen said she would figure something out. Barnwell wanted to keep the conversation going until the next meeting. City of Seward, Alaska City Council Meeting Minutes November 12 2024 Volume 42, Page Wells spoke in favor of nixing this ordinance now and let administration focus on alternate ways to fund the wage study. Motion Failed 3-4 Resolutions Yes: Barnwell, Crites, Warner No: Finch, Osenga, Wells, McClure Resolution 2024-060: Accepting the Proposed Classification and Compensation Study Motion (Osenga/Wells) Approve Resolution 2024-060 Crites declared a potential conflict of interest due to her spouse being a city employee. McClure ruled that a conflict existed and Crites was excused from discussion and voting. Sorensen said this was a resolution based on the wage study that was presented at the recent work session. This resolution represented an 8% increase. Sorensen clarified the difference between a wage study and a compensation study. Since the Introduction of Ordinance 2024-014 had failed, Sorensen asked council to postpone this resolution until the November 25, 2024. She needed time to make sure the city could still pay for the wage increase. Motion (Wells/Finch) Motion Passed Postpone until November 25, 2024 Yes: Wells, Finch, Barnwell, Warner, Osenga, McClure No: None Abstain: Crites Resolution 2024-061: Authorizing the City Manager to Establish a Full -Time Paid Firefighter/EMT Position in the Fire Department Motion (Wells/Osenga) Approve Resolution 2024-061 Sorensen invited Fire Chief Clinton Crites to speak. Fire Chief Clinton Crites spoke to the situation of staff shortages and volunteer firefighters. He read from council meeting minutes from 1960 that required paid fire fighters to cover daytime and nighttime shifts. Now in 2024 that still hasn't happened. Ideally, Crites was hoping for not one, but two additional firefighters to be added. Having a paid firefighter at station 24 hours a day was essential for emergency services and quick response times. Also having someone at the station around the clock was essential to keep an eye on the trucks, equipment, and maintenance issues. City of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42 Pa e Crites invited Andra Woodard to speak. She was with the treasurer for the Seward Volunteer Fire Department. Woodward spoke to the challenges of the department. Crites spoke to the advantage of hiring two people at the same time, such as the shared costs of training at the same time. Wells moved to postpone the resolution and bring it back a revised version on November 25, 2024 for two additional firefighter positions. Peck advised it might be easier to vote to approve this resolution tonight and direct administration to bring back another resolution on November 25, 2024 for an additional firefighter. Council voted down the motion to postpone the resolution and the main motion was back on the floor. Motion Passed Unanimous Council directed administration to bring back another resolution on November 25, 2024 for an additional paid firefighter/EMT position Resolution 2024-062: Authorizing the City Manager to Enter into an Agreement with the Boys & Girls Club of the Kenai Peninsula in the Amount of $170,000 and Appropriating Funds Motion (Osenga/Wells) Approve Resolution 2024-062 Sorensen explained the agreement with the Boys & Girls Club. She asked council to postpone this resolution until she and the Parks & Recreation Director could travel to Soldotna and meet with the club. Finch thanked the young Bayleigh Smith for speaking at the council meeting on the topic. Warner asked administration to look into a couple key points in the contract such as transportation and community representation on the board. Motion(Wells/McClure) Postpone Until Next Meeting Motion Passed Unanimous Resolution 2024-064: Authorizing the City Manager to Approve Amendment # 1 to the Independent Contractor Agreement with Selena Soto for GIS Technical Services Motion (Wells/Osenga) Approve Resolution 2024-064 Community Development Director Daniel Meuninck spoke to Selena Soto's amazing work as a GIS specialist. Soto started in the Community Development office scanning documents and then flourished as a GIS technician. The quality of her work was higher than the work of other GIS City of Seward, Alaska City Council Meeting Minutes November 12 2024 Volume 42, Page technicians. Meuninck said other city departments had relied heavily on Soto's work. He compared the rates of other GIS services compared to Soto's contract. As a very small town, finding another GIS specialist would be a needle in a haystack. City Planner Courtney Bringhurst said Soto was very skilled and knowledgeable in the GIS field. She noted Soto did a better job than the GIS contractors. The contractors also charged more and took longer to get results. Soto deserved a higher hourly rate. Electric Operations Supervisor Taylor Crocker said he was responsible for 50% or more of Soto's current workload. Soto's work was essential to the Electric Department in terms of vegetation management and other data. Finch thought the contract should be up for renewal before it was amended. He didn't agree with sending $150,000 out of state. Finch wanted to stick to the contract until it was time to renegotiate. Osenga said Soto's GIS work was a great service to the city, and the main point was saving the city money. Wells said he was initially against modifying the contract because it had already been signed. However, he had learned that Soto was doing additional duties on top of her contract. Wells empathized that he would also want to re -negotiate the contract if he was in Soto's place. Meuninick said the city was being proactive by amending the contract to be competitive. He wanted to maintain a long-term working relationship with Soto. Motion Passed Other New Business Unanimous Discuss scheduling a work session regarding the Chamber of Commerce partnership with the City of Seward [sponsored by Warner] Warner said she wanted a formal discussion with the Chamber of Commerce about their goals and which programs should be funded or removed. McClure asked for a timeline as to when this work session should be held. Wells felt it was important and didn't want to put it off. He recommended the work session take place as soon as possible. Sorensen recommended 5:30 p.m. on Monday, November 25, 2024 for a Work Session with the chamber. Council agreed that would be a good timeslot. Finch requested Chamber of Commerce financial documents be brought to the work session. INFORMATIONAL ITEMS AND REPORTS City of Seward, Alaska City Council Meeting Minutes November 1Z 2024 Volume 42 Pa e Boards and Commissions Minutes - PACAB Meeting Minutes from October 2, 2024 Other Items Upcoming City Council Meetings - Monday, November 25, 2024, at 7:00 p.m. CITIZEN COMMENTS Daniel Meuninck, outside city limits, said the Comprehensive Plan surveys were out and there was a kickoff event tomorrow at the Tidewater Taphouse. He noted the Planning & Zoning Commission was tackling the housing issues at their next work session. Meuninck hoped for community feedback on the housing discussion. Morgan Woodard, outside city limits, thanked council for approving the one paid fire fighter position. He loved his job as a firefighter but felt overwhelmed by his daily tasks. Having another fire fighter position would make a huge difference. He encouraged council to consider adding yet another position at the next meeting. Patrick Messmer, outside city limits, addressed a previous comment. Messmer confirmed that a new police officer would not be able to afford a home inside city limits. He felt the officer was making a true statement earlier in the meeting. Samantha Allen, inside city limits, thanked council and administration for approving the work session with the Chamber of Commerce. She looked forward to bringing the financials and taking a closer look at the marketing contract. 0 Christiana Smith, outside city limits, thanked council for their careful consideration of the resolutions on the agenda tonight. She thanked Finch for acknowledging her daughter for speaking at the meeting. She noted that council made decisions that affected the youth of Seward. She spoke to the importance of a teen council and safe places for teens. On another topic, Smith said GIS was no joke. GIS mapping was not going away, and it was a very useful tool. She encouraged council to support the city's GIS technician. Tyler Mallory, inside city limits, thanked council for approving the fire fighter position. He spoke as the city's Fire Marshal and had seen firsthand Morgan Woodard's daily struggles as the lone paid firefighter. The Fire Department helped each other out, but they were in dire need of more firefighters. Mallory hoped council would look into the second firefighter position as well. On another topic, he spoke in favor of increasing the bed tax. He didn't think the increased tax would dissuade visitors from coming to Seward. Visitors expected to pay a lot of money on a trip to Alaska. Shane Hand, inside city limits, spoke as the SPEA union representative. He thanked council for taking all the resolutions seriously. He spoke to the complexities of the bed tax situation and the wage study. Certain people were worried about hardships, profit margins, or adapting to any type of change. He appreciated everyone's time and advocated for the workers. He felt for those who were struggling, but still remained dedicated to this community. 1 City of Seward, Alaska City Council Meeting Minutes November 12, 2024 Volume 42, Page COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Sorensen knew this would be a long night and felt the budget cycle was well-rounded. Crites thanked everyone who spoke tonight. She was looking forward to the work session with the Chamber of Commerce. Crites addressed the average home price being $400,000 and noted it was hard for people to live in Seward. She spoke from experience that the Fire Department had a revolving door of volunteers. Seward was too big of a city to not have a 24-7 fully staffed Fire Department. Crites provided statistics of paid firefighter positions in similar Alaskan communities. Warner thanked all the citizens who submitted emails and made comments. Being a new council member was exciting and scary at the same time. She thanked administration and the clerk's office for the robust council packet. Lastly, Warner mentioned the upcoming PTA Site Council meeting. Finch thanked everyone for coming out and speaking. He supported the employee pay raise but still wanted to be conservative with the budget. He thanked the young Bayleigh Smith for speaking and Finch now wondered where all the toys went. Barnwell said it was a great meeting. He thanked all the people who came to testify tonight. He congratulated the Fire Department for getting one new firefighter position. On another topic, tomorrow was the Comprehensive Plan kickoff event. He encouraged everyone to fill out the Comprehensive Plan survey. Wells said it was important to fund the wage study. He would continue to push for that funding. Wells would never ask an employee to take a reduction in health care or benefits in order to get a pay raise. Lastly, Wells looked forward to the discussion on the Boys & Girls Club agreement. Osenga thanked everyone for the comments and input. He thanked administration and fellow council members for a good meeting. McClure said this would be a good council meeting to watch on YouTube to get a feel for local government. She clarified with the clerk the cutoff time for a council meeting. Peck said the cutoff time was 11:00 p.m. and could be extended to midnight with a council vote. ADJOURNMENT The meeting was adjourned at 10:33 p.m. Kris Peck C� _• c, City Clerk Y : • SF . a.....:••' �s OF , ftwa-, Sue McClure Mayor 1