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HomeMy WebLinkAbout12162024 City Council MinutesCity of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 578 CALL TO ORDER The December 16, 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 Randy Wells Robert ell Julie Crites Casie Warner comprising a quorum of the Council; and Kat Sorensen, City Manager Jason Bickling, Deputy City Manager Jodi Kurtz, Deputy City Clerk Ashleigh Lipsey, Executive Assistant to City Manager Sam Severin, City Attorney Excused —Finch Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Samantha Allen, inside city limits, thanked council members for their feedback on the Seward Chamber of Commerce during a recent work session. She said the chamber had revised an economic development partnership agreement that aligns with the city's priorities. Allen detailed what the proposed contract had to offer such as supporting a year-round economy, enhancing quality of life, and promoting sustainable tourism. Allen emphasized the chamber's eagerness to collaborate with the city on these initiatives and expressed pride in their work to strengthen the community. Annette Vrolyk, outside city limits, expressed support for the Seward Chamber of Commerce. As the manager of the Seward Polar Bear Jump, she spoke to how the chamber contributed to the event and praised Samantha Allen's work promoting Seward. Vrolyk emphasized how she City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 579 depended on the chamber for event resources and thanked Samantha Allen and her team for their dedication and ongoing support. Jacob Caldwell, outside city limits, with Kenai Aviation, updated council on the Essential Air Service (EAS) request for proposals. Both Kenai Aviation and Reeve Air Alaska had submitted proposals, and the public comment period was ending on Thursday. He spoke about what Kenai Aviation had to offer for flight access and the connections out of Ted Stevens International Airport. Caldwell also shared the progress made on a new instrument approach into Seward. Lastly, he expressed excitement about the opportunity to support the community and thanked everyone for their time. Russ White, inside city limits, spoke as a city employee and provided updates on sports and recreation activities including: pickleball league, Christmas craft night, solstice walk, Santa Run and cookie decorating. He also announced upcoming league signups for volleyball, racquetball, and basketball, as well as a new archery session for kids. Christiana Smith, outside city limits, expressed appreciation for the presentation on the teen recreation room, but disappointment that the presentation materials were not included in the council packet. She voiced concern about the resubmission of a previously postponed contract, particularly noting that transportation issues had not been addressed. She highlighted challenges securing transportation for after -school activities, which prevented her daughter from participating in basketball. Smith emphasized the importance of early sports participation to reduce long-term risk factors like substance use. She urged the city to explore transportation solutions such as extending contracts or partnering with the Boys and Girls Club to improve access to after -school programs across all school levels. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Crites/Osenga) Approval of Agenda and Consent Agenda McClure removed both non -objections to the marijuana license renewals for the Tufted Puffin. Motion As Amended Passed Unanimous The clerk read the following approved consent agenda items: Approval of the November 25, 2024, City Council Meeting Minutes Resolution 2024-072: Authorizing the City Manager to Accept a Grant from the Public Library Association's Digital Literacy Incentive Program in the Amount of $5,000 Resolution 2024-073: Adopting the 2024 City of Seward Hazard Mitigation Plan with the Kenai Peninsula Borough and City of Seldovia Non -objection to the renewal of the liquor license for the Lone Chicharron Taqueria 1 1 1 City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 580 SPECIAL ORDERS, PRESENTATIONS, AND REPORTS City Manager Report City Manager Kat Sorensen thanked everyone for their involvement with the wonderful Christmas Tree Lighting Ceremony at City Hall. Sorensen also provided updates on many subjects including: the new Library Director, the Comprehensive Plan survey, and Sturgeon Electric's role in a local windstorm emergency. Lastly, Sorensen summarized her experience at the recent Alaska Municipal League (AML) Conference in Anchorage and thanked the council for sending Jason Bickling, Casie Warner, Mayor McClure, and herself. She highlighted the value of the AML conference in fostering connections with municipal leaders across the state. City Attorney Report City Attorney Sam Severin reported the month of November was quieter compared to a bustling October. A key highlight was progress in the longstanding McDonald case and a check for $27,000 in fines was handed to city representatives. This amount did not take into account the additional attorney fees that were still pending. Severin noted the slow pace of the court system but expressed satisfaction with the progress after years of work. He also attended the AML conference in Anchorage which provided valuable opportunities to connect with and share ideas with colleagues statewide. City Clerk Report — None Presentations Update on the Teen Recreation Room by the Sports & Recreation Staff 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 had its first public hearing on November 12, 2024. The second public hearing was held on November 25, 2024, and the resolution was amended. The final public hearing and approval is scheduled for tonight. Motion (already on the floor) Approve Resolution 2024-059 Sorensen presented proposed budget amendments to address the salaries and retirement benefits to the recently added firefighter positions, funded primarily through adjustments to the city budget. She explained the head tax funds from cruise ship passengers were increased from $20,000 to $70,000 to help cover the firefighter salaries because firefighters often assist cruise ship passengers needing medical support. City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 581 Sorensen also explained some decreases in the Fire Department budget line items. There would be a reduction in contracted services. The city manager's contracted services budget for Fiscal Year 2025 and 2026 would be reduced by $45,000 due to grant administration being incorporated into the EPA Clean Ports Grant, eliminating the need for an external grant writer. Sorensen explained there would be an increase for the Small Business Development Center of $25,000 which was balanced by a $25,000 decrease in the contingency budget for street operations. She explained that these proposed amendments would ensure a balanced budget, and the council would have the option to accept the package as a whole or address individual items after public comments. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Samantha Allen, inside city limits, thanked the council for their work on the budget process. She reiterated the importance of the proposed partnership agreement with the Seward Chamber of Commerce. She stated the proposal included a funding request of $400,000 annually with a 4-year contract along with adjustments for inflation tied to the Anchorage Consumer Price Index (CPI). Allen urged the council to direct administration to increase the chamber funding line item from $300,000 to $400,000 annually. Allen expressed gratitude for including the funding increases to the SBDC position and reaffirmed the chamber's commitment to Seward's growth and vibrancy. Melissa Schutter, inside city limits, expressed gratitude to the City Council and City Administration for their hard work on the budget. Schutter noted her own 10-year involvement with the Seward Chamber of Commerce Board of Directors and emphasized the importance of continuing the economic and visitor services partnership. She spoke about how the visitor services are essential, along with the role of the chamber. Schutter respectfully requested that the council direct administration to amend the funding line item for the chamber to ensure the funding matches the actual costs of providing these services. She concluded by reiterating the importance of maintaining this partnership to support visitors and the community. Rhonda Hubbard, inside city limits, addressed several critical concerns regarding the City of Seward's budget and policies. Hubbard acknowledged the challenges of housing availability and affordability for city employees and suggested the city consider policies to reduce the cost of living. Hubbard also spoke on the utility costs, capital projects, and the $20 million capital improvement project for the electrical grid. She addressed the healthcare tax and hospital funding and discussed the 1% healthcare tax and recommended options for future improvements. Hubbard mentioned investment management and highlighted the city's significant financial holdings in cash, bonds, CDs, and money markets. She expressed concerns about the disparity between actual investment earnings and budgeted revenue. Hubbard encouraged the council to focus on reducing the cost of living for residents, revisiting utility and healthcare funding policies, and optimizing the city's financial investments to better align with actual revenue potential. No one else appeared and the public hearing was closed. 1 1 City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 582 Council discussed the items that administration presented as possible amendments. Resolution 2024-059 was amended with the proposed budget amendments that were presented by the Sorensen. Council continued to discuss the contract with the Chamber of Commerce contract, the timing, and the budget allocation. Barnwell wanted more clarification on how much of the budget goes to marketing in comparison to other chamber operations. He wanted to see more clearly defined roles, expectations, and deliverables in the new contract. Council also discussed if the city should continue to fund items like fish purchases and to evaluate the chamber's focus on the marine and fishing industries. Motion as Amended Passed Unanimous Council also directed administration to schedule a work session prior to the January 13, 2025, meeting to discuss the Seward Chamber of Commerce contract. UNFINISHED BUSINESS Resolutions 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 This resolution was postponed on November 12, 2024 Motion (already on the floor) Approve Resolution 2024-062 Sorensen suggested making an amendment to the contract to add item "d." under Annual Reports on page 198 to include "one annual in -person report to the Council per calendar year" to ensure consistent in -person updates of the Boys & Girls Club. Sorensen also said she would meet with the Boys & Girls Club Board President and representatives in Kenai next month. One of her goals was to join as a board member to advocate for the city's interests and enhance communication. The contract was amended by adding item "d." under Annual Reports to say, "One annual in - person report to the Council per calendar year." Council discussed membership, marketing, transportation funding, and possibly collaborating with Seward City Tours. Main Motion as Amended Passed Yes: Crites, Wells, Barnwell, Osenga, Mayor McClure No: Warner City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 583 NEW BUSINESS Resolutions Resolution 2024-069: Authorizing the City Manager to Approve Lowell Canyon Water Storage Tank Replacement for an Amount Not to Exceed $3,000,000 and Appropriating Funds Motion (Osenga/Wells) Approve Resolution 2024-069 Sorensen explained the allocation for the American Rescue Plan Act (ARPA) funds needed to be allocated before the end of the year. This allocation would be for the Lowell Canyon Water Tank Replacement Project. Passing this resolution ensured the city could leverage its allocated ARPA funds to support this water infrastructure project. Public Works Director Doug Schoessler spoke on the replacement of the 200,000-gallon water tank with a new 500,000-gallon tank to meet future water storage needs. He explained the increasing demand from facilities, cruise ships, and fire emergencies. He explained the cost and funding for the water tank replacement project. Lastly, Schoessler addressed risk management and water capacity issues. Motion Passed Unanimous Resolution 2024-070: Authorizing the City Manager to Accept the Proposal from MacSwain Associates and Enter into an Agreement for the Reappraisal of 45 Lots Leased by the City in the Amount of $43,700 and Appropriating Funds Motion (Osenga/Barnwell) Approve Resolution 2024-070 Harbormaster Tony Sieminski stated that council approval was requested for the 5-year reappraisal of 45 city leased lots, with updated lease rates to take effect in July 2025. Motion Passed Unanimous Resolution 2024-071: Authorizing the City Manager to Accept the Proposal from AK Tree Service LLC and Negotiate a Contract for Vegetation Management Services Motion (Wells/Osenga) Approve Resolution 2024-071 Electric Operations Supervisor Taylor Crocker spoke about tree interference with power lines, and that an RFP was issued for tree clearing. AK Tree Service was selected due to their price quote coming in at 1/3 of the cost of the other bidder. The city had a $600,000 annual budget for vegetation management which aimed to address overgrown right-of-way and critical tree hazards first. The goal was to restore and maintain a healthy electrical system, reduce power outages and ensure proactive management of resources. Motion Passed Unanimous 1 1 City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 584 Other New Business Non -objection to the renewal of the marijuana license for the Tufted Puffin on Fourth Avenue Motion (McClure/Osenga) Approve the Renewal Acting City Clerk Jodi Kurtz clarified the process for renewing a marijuana license, which required compliance checks from multiple city departments. This application had been reviewed, and all departments confirmed compliance. The city was not directly approving the renewal but rather issuing a letter of non -objection to the state Alcohol & Marijuana Control Office. Motion Passed Unanimous Non -objection to the renewal of the marijuana license for the Tufted Puffin on Port Avenue Motion (McClure/Osenga) Approve the Renewal Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS Boards and Commissions Minutes Planning & Zoning Commission Minutes from October 8, 2024 PACAB Meeting Minutes from November 6, 2024 Other Items Upcoming City Council Meetings - Monday, January 13, 2025, at 7:00 p.m. CITIZEN COMMENTS Mike Reeve, outside city limits, introduced himself as a representative from Reeve Air Alaska (RAA). RAA had submitted one of two proposals to provide Essential Air Service (EAS) for Seward. Reeve highlighted key points from the proposal and spoke of the commitment to growth, service availability, and their community investment plan for hiring and housing. Patrick Messmer, outside city limits, thanked the council for approving the budget and wage increases for employees. He acknowledged the difficulty of serving on council and recognized that council decisions often led to mixed reactions. Messmer appreciated council for their service and thoughtful consideration. Christiana Smith, outside city limits, thanked Parks and Recreation Department for returning the outdoor toys to the Boys & Girls Club. Smith acknowledged the council's approval of the contract City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 585 and described the limited support that the club director received from the broader organization. Smith also addressed staffing issues, healthy snacks, and programming needs for youth services in the community. Rhonda Hubbard, inside city limits, thanked the council for addressing budget issues and agreed with the decision to wait on increasing the Chamber of Commerce budget. Hubbard suggested allocating the additional $100,000 toward youth activities instead. Hubbard addressed the hospital funding and emphasized the importance of reserving funds for future capital improvements. She spoke on the city investment accounts and suggested that returns may be underestimated to maximize investment performance. Hubbard concluded by expressing appreciation for the council's process and encouraging ongoing transparency. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Sorensen thanked the public for their engagement in the budget process and expressed appreciation for the finance team's hard work during this first budget cycle. She shared her excitement about improvements for the future and setting strong goals for FY25 and FY26. Sorensen expressed gratitude to all city employees across departments for their dedication in keeping the city running smoothly. She looked forward to the new year and the next council meeting on January 13, 2025. Bickling thanked the council and reflected on the progress made over the past year, noting that significant progress had begun on new facilities for the Fire Department, Public Works, Harbormaster, and Police Department. He emphasized the importance of collaboration to make improvements in the community. Bickling expressed gratitude for the council's partnership and his excitement for continued progress in the coming year. Warner explained her "no" vote on Resolution 2024-062 regarding the Boys & Girls Club contract. She emphasized her vote was not due to lack of support for the organization or its local director. Warner explained her concerns with the contract and expressed full support for the Boys & Girls Club. Warner also thanked the Parks and Recreation Department for their efforts. Warner announced that the Kenai Mountain Turnagain Ann Association (KMTAA) was looking for a Seward -based coordinator. Warner shared upcoming community events and reminded everyone about winter break for students. Lastly, Warner thanked city administration, the clerk's office, council, and all the participants in the meeting. Barnwell expressed pride in the council's work on the budget. He felt the process had been enjoyable and more productive compared to previous years. Barnwell highlighted the pay increase for city employees and the importance of morale and productivity. He appreciated the positive attitude of city employees and recognized the great progress being made on various projects. Barnwell thanked Taylor Crocker for his contributions to the Electric Department as well as the Parks and Recreation Department. Wells expressed gratitude for the opportunity to work with the council on the budget. He noted this second time going through a budget session and described his learning experience over the 1 1 1 1 1 City of Seward, Alaska City Council Meeting Minutes December 16, 2024 Volume 42, Page 586 past 3.5 years. Wells also explained his "yes" vote on the Boys & Girls Club contract and noted his confidence in the administration to make it work. Wells spoke about the wage study and all the messages he received in support of an increase. Wells concluded by expressing his happiness for the city employees who would benefit from the wage increase. Crites thanked the Parks and Recreation Department for their presentation. She was impressed with the updates and activities for teenagers. She was interested in exploring transportation options for the Boys & Girls Club. Crites pointed out the disadvantage of lacking a local newspaper and she highly encouraged everyone to participate in the Comprehensive Plan survey. Crites expressed appreciation for the Electric Department's improvements. She shared excitement about the potential air service in Seward and emphasized its importance for medical transportation options. Lastly, she mentioned a recent flight to a village that was the worst flight she had ever been on. Osenga agreed with everything that had been said and wanted to thank the administration and everyone here for all the work that had been accomplished this year. He also appreciated the citizens for their input and comments. He wished everyone a joyous holiday season and said Merry Christmas and a Happy New Year! McClure echoed everything that had already been said. McClure was really impressed with the budget. She thanked everyone who was involved in putting the budget together, especially the department heads and administration. McClure shared highlights from the AML Mayor's conference and noted how other cities are struggling with similar issues such as affordable housing and childcare. McClure believed Seward stood out with strong teamwork with council and administration. Lastly, McClure wished everyone a wonderful holiday season, and reminded everyone to be careful with the kids out and about! ADJOURNMENT The meeting was adjourned at 9:26 p.m. Jod 41 urtz Ac . g City Clerk (City Seal) J Sue McClure Mayor