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HomeMy WebLinkAbout05112026 City Council MinutesCity of Seward, Alaska City Council Meeting Minutes May I1, 2026 Volume 43, Page 216 CALL TO ORDER The May 11, 2026, regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Chief of Police Louis Tiner led the Pledge of Allegiance. ROLL CALL There were present: Sue McClure, presiding, and John-Osenga Robert Barnwell Julie Crites Casie Warner Lori Draper Mike Calhoon comprising a quorum of the Council; and Jason Bickling, Acting City Manager Kris Peck, City Clerk Jodi Kurtz, Deputy City Clerk Sam Severin, City Attorney Excused — Osenga Absent — None PROCLAMATIONS AND AWARDS Proclamation for Building Safety Month was read by Mayor Sue McClure and accepted by City Building Inspector Jeremy Rogers. Proclamation for Memorial Day was read by Council Member Mike Calhoon. Proclamation for Peace Officers Memorial Day and National Police Week was read by Council Member Bob Barnwell and accepted by Police Officers Joseph Estrada and Eddie Armstrong. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Skip Reierson, inside city limits, provided a written laydown for council. He recommended ways to improve the fund accounting format that the city currently uses. Reierson also encouraged the City of Seward, Alaska City Council Meeting Minutes May ll, 2026 Volume 43, Page 217 Electric Department to halt on big expenditures that were lower priority such as new accounting software. Further, if the city decides to sell the electric utility it was doubtful the city would be compensated for assets such as software. He was also concerned about Electric Department salaries going over budget. He noted the Mt. Marathon hydro project legislation did not include any in-house labor factored into the funding. Victoria Provenza, inside city limits, spoke about a business incubator program for the Seward Middle School. If the city was looking at taking over the building, she wanted the city to know about a business incubator program. It would be an economic boon for the city. Phil Kaluza, inside city limits, provided a written laydown for council. He spoke about comparing heat pumps to oil heating systems. He summarized from the statistics in his written report. He spoke in opposition the new harbormaster building burning waste oil. He would rather see large heat pumps designed for Seward's climate. Amanda Sweeting, outside city limits, spoke on behalf of the Chamber of Commerce and provided a list of upcoming events. She also noted a short list of cruise ships in May that were being re-routed to Whittier. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Calhoon/Draper) Approval of Agenda and Consent Agenda McClure requested the batch of Developer Reimbursement Program Resolutions 2026-044 thru 2026-049 to be moved to the Consent Agenda. Draper requested Resolution 2026-045 and Resolution 2026-058 to remain in New Business. Motion as Amended Passed Unanimous The clerk read the following approved consent agenda items: Approval of the April 27, 2026, City Council Meeting Minutes Resolution 2026-052: Accepting Funds from the Museums Alaska Association Collections Management Fund Program for the Seward Museum Exhibit Upgrades Project in the Amount of $16,525 Resolution 2026-044: Approving the Developer Reimbursement Program Application Submitted by Tom Lindquist for Sewer Extensions Benefitting Lots 15-18 Along Unimak Circle and Authorizing an Expenditure in the Amount of $119,000 and Appropriating Funds Resolution 2026-046: Approving the Developer Reimbursement Program Application Submitted by Robert Williams and Travis Maurer for Water, Sewer, Electric, and Road Extensions Benefitting Tracts 5B-1 and 5B-2, Forest Acres Subdivision, and Authorizing an Expenditure in the Amount of $639,100 and Appropriating Funds City of Seward, Alaska City Council Meeting Minutes May 11, 2026 Volume 43, Page 218 Resolution 2026-047: Approving the Developer Reimbursement Program Application Submitted by Charles "Mick" Sela for Water and Sewer Extensions to Block 9 Lots 1-4 in the Bayview Addition and Authorizing an Expenditure in the Amount of $129,550 and Appropriating Funds Resolution 2026-049: Approving the Developer Reimbursement Program Application Submitted by C&J Petersen Properties for Water and Sewer Extensions to Lots 30, 31, and 32, in the Gateway Subdivision and Authorizing an Expenditure in an Amount of $61,750 and Appropriating Funds IN -PERSON REPORTS AND PRESENTATIONS City Manager Report Acting City Manager Jason Bicking announced the Electric Department would be hosting a Town Hall meeting to compare economic impacts of different electric utility structure options. On another topic, there is an upcoming closure for Two Lakes Trail for maintenance and beautification. Lastly, the Kenai Peninsula Borough still has a Seward Seat vacancy on their Planning Commission. Sports & Recreation Manager Russ White updated council on sports & recreation events including the Seward Kite Festival, Pink Cheeks Triathlon, and the Exit Glacier races. Due to increased participation in these events, more volunteers were needed. White also provided updates on the softball league, an AVTEC gym closure, and a movie event at the Seward High School Pool. Deputy Library Director Karen Cooper McLoughlin updated council on library events and activities including scrapbooking, daily movies, tutoring, story time, summer reading program, chess tournaments, and many others. She thanked all the volunteers. Bickling also added an update regarding the Department of Environmental Conservation's continued progress of evaluating the Jesse Lee Home property. City Clerk Report City Clerk Kris Peck announced the four Seward High School students who were selected to go on the Sister City Exchange to Obihiro, Japan. The team leader will be Deputy City Clerk Jodi Kurtz. City Attorney Report City Attorney Sam Severin summarized from his report in the packet. It was fairly cut and dry which was a good thing. He described how personnel matters were confidential and required bursts of activities behind the scenes. City of Seward, Alaska City Council Meeting Minutes Mar• / /, 2026 Volume 43, Page 219 PUBLIC HEARINGS — None UNFINISHED BUSINESS — None NEW BUSINESS Resolutions Resolution 2026-045: Approving the Developer Reimbursement Program Application Submitted by OLV LLC for Road and Electric Extensions for Proposed Lots 1 — 17 within the Point Subdivision and Authorizing an Expenditure in the Amount of $423,537.25 and Appropriating Funds Motion (Barnwell/Calhoon) Approve Resolution 2026-045 Bickling summarized how this resolution was based on the recent work session regarding the Developer Reimbursement Program. Draper provided a laydown with proposed amendments to the resolution. Resolution 2026-045 was amended to include a new Section 4 that read: The developer may proceed with design and construction activities associated with the project prior to rezoning approval; however, reimbursement under the Developer Reimbursement Program shall not occur unless the subject property is rezoned to a residential zoning district permitting the proposed residential development Resolution 2026-045 was amended to include a new Section 5 that read: Reimbursement authorized under this resolution is contingent upon the developer obtaining all necessary approvals for the use of onsite wells and septic systems, and providing documentation, signed and sealed by a licensed professional engineer, demonstrating that adequate onsite wells and septic systems are feasible and sustainable for each lot within the subdivision in accordance with applicable regulatory requirements, such that all required improvements necessary for issuance of building permits can reasonably be achieved. Barnwell appreciated the amendments, but wanted to clarify how this new Section 5 would potentially impact the developer. Community Development Director Daniel Meunick didn't foresee any interference with the developer and clarified the language would be in the upcoming subdivision agreement. Ultimately, the goal was to ensure the developer can showcase to the city that the future lot owners will have access to water & septic systems. Barnwell clarified that no city funds would be transferred until all these requirements were met. Motion as Amended Passed Unanimous City of Seward, Alaska City Council Meeting Minutes Mar I1. 2026 Volume 43, Page 220 Resolution 2026-048: Approving the Developer Reimbursement Program Application Submitted by Resurrection Bay Investments for Electrical Extensions Benefitting Lots 1-1 1, within the Mount Alice Estates Development and Authorizing an Expenditure in the Amount of $48,233 and Appropriating Funds Motion (Calhoon/Warner) Approve Resolution 2026-048 Bickling noted this resolution was presented almost exactly as it was discussed in the recent work session except there was now a 15% contingency. The funding here reflected that slight price increase. Draper referred to her laydown again and motioned to make an amendment to this resolution as well. Resolution 2026-048 was amended to include a new Section 5 that read: Reimbursement authorized under this resolution is contingent upon the developer providing documentation, signed and sealed by a licensed professional engineer, demonstrating that adequate onsite wells and septic systems are feasible and sustainable for each lot within the subdivision in accordance with applicable regulatory requirements, such that all required improvements necessary for issuance of building permits can reasonably be achieved. The City Clerk confirmed with Council that the sections would be re -numbered on the final printed version of the resolution. There were no sections that were missing or being replaced. Motion as Amended Passed Unanimous Resolution 2026-050: Authorizing the City Manager to Accept the Quote from NC Machinery for the Repair of the Caterpillar D6 Dozer Following Ocean Immersion in the Amount of $205,021.29 and Appropriating Funds Motion (Calhoon/Warner) Approve Resolution 2026-050 Public Works Director Doug Schoessler described the unfortunate event last year with a dozer sliding into the bay. He looked into pricing on new machines and the cost was around $700,000. It was cheaper to replace the engine, transmission, and electronics in the existing dozer. Schoessler described how the insurance money also went towards recovering the dozer from the bay and other logistics. McClure thanked Schoessler for the explanation and noted the repair was covered by insurance. Barnwell asked about the dangerous work conditions on the waterfall and wondered if any protocols had been changed since the incident. Schoessler noted the operator went slightly too far into the bay and the sand was too saturated. He had evaluated what the department can do differently in the future which included louder volume on radio communications. City of Seward, Alaska City Council Meeting Minutes Mai 11, 2026 Volume 43, Page 221 Calhoon and Schoessler discussed the insurance and total cost of the recovery operation and the back -and -forth conversations with the insurance company. Draper asked whether the new waterfall tunnel would make this type of dangerous work obsolete. Schoessler predicted that with the new tunnel, this type of work could be done after the fact, rather than during an active flooding event. Motion Passed Unanimous Resolution 2026-051: Authorizing the City Manager to Enter into an Agreement with Sturgeon Electric for Boring Support Services for Summer 2026 Construction Projects in an Amount Not to Exceed $210,540 and Appropriating Funds Motion (Barnwell/Draper) Approve Resolution 2026-051 Electric Operations Supervisor Taylor Crocker explained that $133,000 of this work was being designated to QAP [Quality Asphalt Paving] to power to their gravel pit on Herman Leirer Road. The money would eventually come back to the city when QAP pays their estimate. The other portion of the boring services was for Lowell Creek in support of the new tunnel. The reason this item wasn't budgeted is because the scope of this project wasn't known two years ago. Draper said she initially had a lot of questions about the $200,000 unbudgeted expense, but she appreciated Crocker's explanations. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS Upcoming City Council Meetings Work Session on the Middle School/High School Pool on Tuesday, May 26, 2026 at 5:30 p.m. Regular Meeting on Tuesday, May 26, 2026, at 7:00 p.m. Other Items Small Business Development Center Q 1 Report CITIZEN COMMENTS Taylor Crocker, outside city limits, updated council on the Electric Department's new lineman apprentice program. He was excited to report that a third -generation Sewardite had been offered the position. City of Seward, Alaska City Council Meeting Minutes Mar 11, 2026 Volume 43, Pmg 222 COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Calhoon noted May was a busy month which included Peace Officers Memorial Day, Armed Forces Day, Blessing of the Bikes, Combat Fishing Tournament, and other Memorial Day services. Warner announced the upcoming Mermaid Festival and advised everyone to be aware of pedestrians in the harbor. The last day of school was coming up and she noted a high percentage of graduates this year with alumni parents. Lastly, she announced the Kids Fishing Day at Two Lakes Park. Barnwell confessed he didn't participate in the Super Saturday Clean Up this year. He noted the amazing turnout of yellow trash bags along the roads. Draper thanked the citizens who made comments and provided laydowns. She reported that the Seward Rotary Club just had a great fundraiser event. Draper had attended a recent Variety Show that featured a fun skit about City Council. Lastly, she noted that Anchorage provided short-term rental plans for free. McClure provided updates on the Mariners Memorial and the Blessing of the Fleet schedule. She shared her experience in the Sam Daniel Super Saturday Cleanup in the pouring rain. Calhoon also wanted to give a shout out to a couple members of the Teen & Youth Board for volunteering at the food bank and helping out. EXECUTIVE SESSION Annual Evaluation of the City Attorney Severin requested his evaluation be a public discussion and McClure noted there would not be a motion to go into executive session. Severin summarized from his self -evaluation form. He explained how the City Attorney was an office rather than an individual person and felt that a public discussion was appropriate. Council spoke highly of the MCS law firm and overall were very pleased with their work. They discussed with Severin how the firm charges the city with a mix of flat rates and hourly billing depending on the issue. ADJOURNMENT The meeting was,adjourned at 8:35 p.m. 41 Kris I�• � p� 6% FOB City tlerJ2�' .... s: : • ! SEAL ._.— flrrnrrt►. i�X1a he. - Sue McClure Mayor