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HomeMy WebLinkAbout11172025 City Council MinutesCity of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 134 CALL TO ORDER The Monday, November 17, 2025, regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Police Chief Louis Tiner led the Pledge of Allegiance. ROLL CALL There were present: Sue McClure, presiding, and John Osenga Robert Barnwell Julie Crites C s•e Warner Lori Draper Mike Calhoon 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 Charles Cacciola, City Attorney Excused — Warner Absent — None PROCLAMATIONS AND AWARDS Small Business Saturday Proclamation was read by Vice Mayor Osenga and accepted by the Chamber of Commerce Director Amanda Sweeting. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald, inside city limits, spoke about the electric utility items on the agenda. He believed the electric utility should be a co-op. The city had tried to sell the utility twice and now was pouring a huge amount of funding into it. The profit from the utility should go back to the customers. The electric utility was essentially a pass-thru business because the city was selling electricity that was being bought from another business. The whole set up felt crooked. City of Seward, Alaska November 17, 2025 Amanda Sweeting, Christmas shopping. mentorship program. City Council Meeting Minutes Volume 43, Page 135 outside city limits, spoke in support of the local businesses and early bird She updated council on Chamber of Commerce events and a small business Becky Dunn, inside city limits, thanked the City of Seward for all the public outreach. Dunn explained how the Kenai Peninsula Borough offered tax exemptions for various classifications such as senior citizens and disabled veterans. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/Calhoon) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the October 27, 2025, City Council Meeting Minutes Resolution 2025-112: Supporting Full Funding for the State of Alaska Municipal Harbor Facility Grant Program in the FY27 State Capital Budget in the Amount of $18,186,535 Resolution 2025-113: In Support of Raising the Maximum Available Alaska Department of Transportation Harbor Facility Grant to $7,500,000 for Eligible Projects on an Annual Basis Resolution 2025-114: Authorizing the City Manager to Accept the Proposal from CRW Engineering Inc for Design and Engineering Services for the Elm Street Water Main Replacement Project in the Amount of $78,840 Plus 10% Contingency and Appropriating Funds Resolution 2025-115: Authorizing the City Manager to Accept the Online with Libraries Internet Cost Assistance Program Award from the Alaska State Library in the Amount of $1,242 Resolution 2025-116: Authorizing the City Manager to Accept the Public Library Assistance Grant from the Alaska State Library in the Amount of $7,000 IN -PERSON REPORTS AND PRESENTATIONS City Manager Report City Manager Kat Sorensen shared some good news that the city was awarded a grant to bring Narcan vending machine to downtown Seward. She thanked Executive Assistant Kristin Wise for all her hard work on the grant award. Regarding the agenda tonight, Sorensen noted Resolution 2025-114 was fully funded through a loan. She also wanted to acknowledge the three financial reports that were released after the packet deadline. Sorensen provided an update on the Kenai Peninsula Borough property tax and sales tax from Q3 that equaled 1.9 million dollars. City of Seward, Alaska November 17, 2025 City Council Meeting Minutes Volume 43, Page 136 Lastly, Sorensen shared a success story about shopping local to quickly put together a black -tie outfit for a gala. Council and administration discussed the financial reports, budgets, salaries, credit card fees to campground users, the Developer Reimbursement Program, the Providence management agreement, and Jesse Lee Home site drilling core samples. City Clerk Report — None City Attorney Report City Attorney Charles Cacciola noted this was his first appearance at a council meeting in Seward. He summarized from the written attorney report in the packet. Other Reports and Announcements — None Presentations — None PUBLIC HEARINGS Ordinances for Enactment Ordinances 2025-017: Approving the Land Use Amendment to Rezone 2500 Laurel Street from a Resource Management (RM) Zoning District to an Auto Commercial (AC) Zoning District and 1000 Hemlock Avenue from an Institutional (Ins) Zoning District to an Auto Commercial (AC) Zoning District Motion (Osenga/Barnwell) Enact Ordinance 2025-017 Community Development Director Daniel Meuninck explained how the previous council meeting set in motion a few dominoes regarding this land swap. Tonight's meeting contained the final steps. He explained the split zoning that would occur when the land swap was finalized. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Motion Passed Unanimous Resolutions Requiring Public Hearing Resolution 2025-107: Authorizing the Disposal of City Property Near.1000 Hemlock Avenue and The Acquisition of Privately -Owned Property Near 2405 Seward Highway for a Land Exchange Motion (Osenga/Calhoon) Approve Resolution 2025-017 City of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 137 Meuninck said this resolution was the last piece of the land swap puzzle. The utility allocation, the plat, and the rezone had already been approved, and he sure hoped this one would pass. This resolution would make the land swap official. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Tim McDonald, inside city limits, wanted to know what the basic terms were of this land swap. He wanted more information. No one else appeared and the public hearing was closed. Sorensen explained some of the terms in the swap of acreage and how no funds were being transferred. It was a win -win situation. Motion Passed UNFINISHED BUSINESS Resolutions Unanimous Resolution 2025-104: Authorizing the City Manager to Accept the Proposal from SEL Engineering Services Inc and Northern Powerline Constructors Inc for the Spring Creek Substation Rebuild Project in an Amount Not to Exceed $5,381,452.38 Motion (Osenga/Draper) Approve Resolution 2025-104 Sorensen said this price tag included a 30% contingency and was an essential piece to the infrastructure upgrades. There had been questions about the necessity of converting from 69 kV to 115 kV. However, it was worth the upgrade for future growth. In 10-15 years, any power generation project would require the 115 kV upgrade. This update would also meet the standards of the Railbelt Transmission Organization. Electric Operations Supervisor Taylor Crocker added that this resolution for the Spring Creek Substation included the $850,000 control building. He thought the city received a very good proposal from SEL Engineering that was mindful of the city's budget. Barnwell wanted more information on the poor condition of this particular substation to help visualize why the rebuild was so essential. Crocker described the current conditions of the substation and how he planned to rehabilitate the whole thing. With these upgrades, the city would be in good shape for the next 50 years across the bay. Draper thanked the administration for putting together the laydown on the history of the project. City of Seward, Alaska November 17, 2025 City Council Meeting Minutes Volume 43, Page 138 Calhoon proposed an amendment in Section 2 to strike: It will be appropriated through the City's last infrastructure bond scheduled for possible issuance by the end of May 2026, and/or other financing funding. Council and administration discussed internal loan and funding options. Osenga said removing that line would give more options, rather than add more restrictions. Calhoon explained that the future of the utility was unknown. He wanted more than enough funds available without bonding it. He didn't want the city to be tied to bond payments. He wanted to make payments to ourselves with interest. Resolution 2025-104 was amended in Section 2 to strike: 7 a a Main Motion as Amended Passed Unanimous Council recessed the meeting at 7:53 p.m. Council resumed the meeting at 7:59 p.m. NEW BUSINESS Resolutions Resolution 2025-108: Authorizing the City Manager to Accept the Proposal with CRW Engineering Group to Engineer and Design Infrastructure to Disinfect Effluents from the Lowell Point and Spring Creek Wastewater Treatment Facilities in an Amount Not to Exceed $665,600 and Appropriating Funds Motion (Osenga/Calhoon) Approve Resolution 205-108 Public Works Director Doug Schoessler explained that the Department of Environmental Conservation [DEC] required disinfection on both lagoons. It was an unfunded mandate, and after several discussions with DEC, the state revolving fund was used to pay for the design and engineering. The $665,600 would also be forgiven. Lastly, Schoessler noted that CRW has great track record working on projects in Seward. Sorensen thanked Schoessler and his team for finding funding options for these unfunded mandates. Barnwell confirmed this covered both Spring Creek and Lowell Point facilities. Schoessler explained how the two different facilities were handled. Motion Passed Unanimous City of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 139 Resolution 2025-109: Authorizing the City Manager to Add the Position of Apprentice Lineman in the Electric Department and Enroll that Position in the Alaska Joint Electrical Apprenticeship & Training Trust Program Motion (Osenga/Calhoon) Approve Resolution 2025-109 Crocker said the City of Seward has gone two years without the Journeyman Lineman position being filled. This resolution included a new hybrid program where the city would be paying for the schooling. Along the way the apprentice would work for other electrical companies and accumulate the required 8,000 hours of experience returning to Seward. If the apprentice decided not to return to Seward, they would have to pay back all funds spent on their schooling. Crocker had received six phone calls already from interested applicants. He hoped council passed the resolution because a Journeyman Lineman is one of the best jobs a person could ever have. Council and administration discussed the classification of the new position, the perpetuity of the apprenticeship program, and if other utilities would be paying the apprentice. Motion Passed Unanimous Resolution 2025-110: Authorizing the City Manager to Allocate Funds for the Mount Marathon Hydro Plant Rehabilitation Project in the Amount of $400,000 and Appropriating Funds Motion (Osenga/Calhoon) Approve Resolution 205-110 Crocker noted he had to re -format his spreadsheet for the council packet and it was missing a few details. His basic idea was to buy parts that were currently being auctioned off at a very low prices. This resolution would authorize him to buy the parts that were needed to complete the hydro project as cheaply as possible. Council and Crocker discussed the annual savings, historical water flow data, and a gear reduction box. Motion Passed Unanimous Resolution 2025-111: Authorizing the City Manager to Renew the Management Agreement with Matanuska Electric Association to Provide for the Electric Department Operations in an Amount Not to Exceed $950,000 and Appropriating Funds Motion (Osenga/Draper) Approve Resolution 205-111 Sorensen spoke to the success of the current management under MEA. The manager Brian Hickey and supervisor Taylor Crocker were doing an excellent job. Both of these positions were impossible to hire under our current pay scale. These positions were defunded in the budget in order to create the agreement with MEA. The proposed renewal continues the agreement for one year with option for extensions. Sorensen also noted the funding was not necessarily going to be spent to the maximum. City of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 140 Overall, this renewal maintains stability and supports long term planning efforts with the Electric Department. Council and administration discussed full-time positions and if there was a need for Hickey to be a full-time status. Sorensen noted that Hickey spent around 12 hours a week participating in various electric utility meetings on behalf of Seward. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS Upcoming City Council Meetings Regular Meeting on Monday, December 15, 2025, at 7:00 p.m. [This will be the only City Council Meeting held in December] Other Items Providence Quarter 3 Report City of Seward Quarter 3 Financial Report City of Seward Central Treasury Report CITIZEN COMMENTS Tim McDonald, inside city limits, thanked council for bringing forth the reality that the city might not own the electric utility in the near future. He thought the contract with MEA was intended to be temporary and questioned why it was being extended. He would rather see full-time city employees being trained in these electric utility positions. On another topic, McDonald remained concerned about the sewage lagoon discharging into the bay. He wanted more testing done on chemicals in the water. The steady decline of quality and quantity of fish over the years was a result of the sewage and chemicals in the bay. Becky Dunn, inside city limits, reminded everyone about a residential tax exemption with the Kenai Peninsula Borough before the end of the year. She advised on which KPB offices would be able to help with the filing process. Lastly, she mentioned the Chamber of Commerce newsletter report about best practices in the tourism industry. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Sorensen noted the city tree lighting ceremony would be held on the Saturday after Thanksgiving. She heard Santa would be there with cookies and hot cocoa. There might even be a special appearance from the Grinch. City of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 141 Draper was excited to be on the city council. All the city employees and community members had been so welcoming and supportive. She enjoyed the facility tour with the Public Works Director. She recalled the Mt. Marathon hydro project being on the Community Hospital Board project list back in the 1970s. Lastly, she noted the Kenai Crewsers Rowing Club would be hosting the Seward Holiday Arts & Crafts Fair. Calhoon welcomed Council Member Draper to the fold. He noted Thanksgiving is coming up and noted the community meal and other food services that will be provided by the American Legion. He also explained the American Legion's Operation Apple Pie which sent gift packages out to locals who were actively serving in the military. Calhoon noted the MEA contract was the best option the city had right now due to the utility's future being up in the air. Brian and Taylor would likely not apply for a job for a utility that's up in the air. Lastly, Calhoon supported free speech, but encouraged public comments to be less derogatory and more open to a friendly discussion. He wished everyone a Happy Thanksgiving. Crites thanked everyone who spoke tonight. She thanked Doug Schoessler and. Taylor Crocker for all their hard work on the resolutions. She announced an upcoming Fire Department chili cookoff and everyone was invited. Barnwell welcomed Draper to City Council. He echoed Calhoon's comments in support of the MEA contract. The Electric Department was in good hands with Crocker and Hickey. They had great energy and were creative thinkers. Lastly, he thanked Doug Schoessler for obtaining these important grants. Osenga welcomed Draper and Calhoon to the dais. He encouraged people to participate in Small Business Saturday. He wished everyone an awesome Thanksgiving and to be careful in the wintry weather. McClure welcomed Draper to the City Council. It was nice to have all the high school students in attendance from the government class. The group got their photo taken with the Mayor during the recess for extra credit. McClure announced upcoming community events and concerts. She thanked Becky Dunn for the information on the KPB tax exemptions. Lastly, she encouraged everyone to be cautious while driving and watch out for bikers. Calhoon mentioned the Day with Santa event at the American Legion. Sorensen added that immediately prior to that event is Rotary Club Breakfast with Santa in conjunction with Parks & Recreation Department. Draper mentioned the events were coordinated so the kids could attend both. 1 1 City of Seward, Alaska City Council Meeting Minutes November 17, 2025 Volume 43, Page 142 ADJOURNMENT The meeting was adjourned at 8:43 p.m. Kris Peck City Clerk (City Seal) S%%II n .11Sit i t� ,A w ti M • d F nn f OF ................ �s:eeaee►► Sue Sue McClure Mayor