HomeMy WebLinkAbout08112014 City Council Minutes City of Seward, Alaska City Council Minutes
August 11, 2014 Volume 39, Page 371
CALL TO ORDER
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The August 11,2014 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Jean Bardarson.
OPENING CEREMONY
Police Chief Tom Clemons led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
Jean Bardarson presiding and
Ristine Casagranda Christy Terry
Iris Darling David Squires
Dale Butts
comprising a quorum of the Council; and
Ron Long, Assistant City Manager
Brenda Ballou, Deputy City Clerk
..,, Absent—Marianna Keil
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Chip Arnold read a letter from Chance Miller who resided on Lowell Point relating to the
sewage lagoon.
Teri Arnold said she watched the television news tonight and said although the residents of
Lowell Point had not contacted the news station, there had been news coverage on the television
tonight about the sewage lagoon. She was upset about how the city was portrayed on the news, but
also thought the timeline distributed by Public Works was not acceptable.Arnold hoped that council
would keep this as a steady agenda item until the issue was resolved.
John Page said he was a Lowell Point resident and ran his Sunny Cove business there. He
had always been happy there,but now thought the city had been negligent in their care of the sewage
lagoon. He was concerned with the air quality and wanted the air tested.
Bill Pfisterer said he ran a business at Lowell Point and was concerned about the apparent
inaction of the city since he spoke at the last city council meeting. Every night he was awakened
from sleep by the odor,and he had to take medicine every day as a result.He was concerned that the
trio chain of command for the city had not been followed for accountability, that there had not been
proper oversight of the facility, or there had been negligence. Pfisterer wanted people held
responsible.
City of Seward, Alaska City Council Minutes
August 11, 2014 Volume 39, Page 372
Dave Leech read a letter from George Walker regarding suggestions for managing the
magisewage lagoon at Lowell Point.
Gayle Selyem said she had been living at Lowell Point for eight years and had been happy
there until recently. The smell from the sewage lagoon had been so bad that her family had not been
able to enjoy any outdoor activities or open their windows,and her eyes watered and burned. Selyem
said the conditions were unlivable.
Pam Sousa was a co-owner of Liquid Adventures on Lowell Point, and loved living there
since 2004. The smell from the sewage lagoon ruined her summer, and she and her family had not
been able to enjoy any outdoor activities. Sousa was concerned that people were experiencing health
problems, including coughing, watery eyes and upset stomachs.
Sue Lang was a resident of Lowell Point and manager of Silver Derby Campground. Lang
was intentionally avoiding booking reservations for May and June 2015,which represented 25%of
her annual income,because she didn't believe the city would clean up the sewage lagoon in a timely
manner.
Karl Van Buskirk said he operated Stormchasers on the way to Lowell Point and from his
shop the odor had been very strong. Van Buskirk was now concerned for his employees' health.He
felt the city had been ignoring the problem for many years and telling the residents that the odor was
caused by other things like rotting trees and vegetation. He questioned whether raw sewage was
being dumped into Resurrection Bay. He suggested the city may have outgrown the sewage plant's
capacity to handle the volume.
Sherri Miller said she had always considered the city to be a good neighbor.Miller had been
hospitalized for breathing difficulties when she was living at Lowell Point and was prescribed
steroids. Miller said on two different occasions when she left town her symptoms cleared up, but
when she returned to Lowell Point her eyes became swollen and watery and her breathing more
difficult.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Terry/Casagranda) Approval of Agenda and Consent Agenda
Terry added an item to schedule a work session to discuss the Lowell Point Sewage Lagoon.
Bardarson added Resolution 2014-066 to the consent agenda.
Bardarson added Resolution 2014-067 to the consent agenda.
Casagranda added Resolution 2014-069 to the consent agenda.
tada.
Casagranda added Resolution 2014-070 to the consen g e n
City of Seward, Alaska City Council Minutes
August 11, 2014 Volume 39, Page 373
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2014-066,Authorizing The City Manager To Accept Legislative Grant#15-
DC-144 From The State Of Alaska Department Of Commerce, Community, And Economic
Development In The Amount Of $1,300,000 For Dredging And Disposal Of Sludge
Accumulated At The Lowell Point Sewage Lagoon,And Appropriating Funds.
Resolution 2014-067,Authorizing The City Manager To Accept Legislative Grant#15-
DC-145 From The State Of Alaska Department Of Commerce, Community, And Economic
Development In The Amount Of$5,900,000 For The Design And Development Of The Seward
Marine Industrial Center(SMIC)Including Breakwater Engineering And Construction And
Appropriating Funds.
Resolution 2014-069,Accepting A Grant In The Amount Of$29,682 From The Alaska
Department Of Fish & Game For The Purpose Of Replacing And Improving Sewage Pump
Out Facilities At The Seward Small Boat Harbor, Authorizing Matching Funds In The
Amount Of$9,894 And Appropriating Funds Totaling$39,576.
Resolution 2014-070,Authorizing The City Manager To Enter Into A 48-Month Fair
Market Value Lease Agreement With Konica Minolta Business Solutions For Seven
Replacement Copiers For A Base Amount Of$1,896.64 Per Month.
Approval of the June 9,2014 and June 23,2014 City Council Regular Meeting Minutes.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations & Awards
Presidential Service Awards for Walter Corrigan,Mike Moore,Don Cripps,and Jean
Cripps.
Borough Assembly Report, Sue McClure reported the assembly had met twice since her
last report.There had been an ordinance before the assembly to ask voters whether or not they would
support a borough-wide bed tax to fund tourism, but Borough Mayor Mike Navarre vetoed the
ordinance and after much discussion, the assembly failed to override the veto. The assembly
appropriated approximately $300,000 to the city from this year's cruise ship head tax receipts.
There would be a citizen advisory vote on the October ballot to indicate whether borough
elections should be held by mail. There would also be a two-part citizen advisory vote on the
October ballot asking voters whether they want the borough to have limited animal control powers
specifically for domestic animal rescue outside city limits, and whether there should be a 0.02 mill
property tax increase to support that endeavor. There were three Borough Assembly seats
representing Homer, Kenai and Sterling up for election this year, as well as several service board
area seats.
City of Seward,Alaska City Council Minutes
August 11, 2014 Volume 39, Page 374
The assembly would next meet on September 2, 2014. The agenda for that meeting would
include passing through money from the state: $100,000 grant for the Seward Bear Creek Volunteer
Fire Department to help finish the building,and$500,000 for the Seward Bear Creek Flood Service mai
Area Board to help them continue flood mitigation work.
In response to Squires, McClure said the animal rescue advisory vote would be a borough-
wide service, outside city limits, and was intended to mitigate animal abuse, as well as provide
support and response in the event of a disaster.
City Manager's Report, Assistant City Manager Ron Long stated there had been no
purchase orders between$10,000 and$50,000 approved by the City Manager since the last council
meeting. There would be nearly 1,400 visitors in Seward this week from the Council of State
Governments.Negotiations for employment for the Project Manager position were underway.Long
thanked Harmon Construction for replacing the glass on the bus stop located at Kawabe Park.
In the Public Works Department,the bid opening for the Lowell Point sludge removal project
was held today and the apparent low bidder was Merrell Brothers Construction at approximately
$3.988 million. Public Works and city administration received multiple complaints regarding the
odor problem at Lowell Point and this project should be completed by June 2015. Further, staff
corresponded with the Alaska Department of Environmental Conservation(ADEC)and was working
toward a solution.Residents of Lowell Point were emailed about odor control measures taking place.
Staff was monitoring dissolved oxygen levels and odor control measures,including adding calcium
nitrate to the lagoon. Public Works Director W.C. Casey said last week one of his staff reported a
Channel 2 news crew at the sewage lagoon.The news team told Casey that someone had called them
a reported raw sewage had been dumped into Resurrection Bay,and Casey denied any knowledge of
that concern. Long added that the city had conducted air quality testing would be conducted
tomorrow four times throughout the day by White Environmental Consultants at the Lowell Point
Sewage Lagoon. Casey said he spoke with the Environmental Protection Agency, but the State of
Alaska had no requirements for hydrogen sulfide.Public Works staff had been testing the air and had
been getting zero detect results.
In the Harbor Department,the 59th Annual Silver Salmon Derby started on August 9,2014.
Harmon Properties,LLC executed a seventy-nine(79)year lease extension on their 2-acre parcel at
the Seward Marine Industrial Center(SMIC).The lease agreement would come before council on the
August 25, 2014 agenda. The harbor received no bids for the impounded vessel auction held on
August 1, 2014. Subsequently, fluids and a few parts were removed from the vessel and then the
vessel hulk was hauled off to the dump for disposal. A representative of the Department of
Homeland Security inspected Seward's dock facilities on August 4,2014 to evaluate the feasibility
of Seward as an emergency backup to the Port of Anchorage.
The Electric Department received no responses for the load tap changers/substation
transformers maintenance and renovation work proposal.Per City Code Section 6.10.120.A.10,the
Electric Department would negotiate with a qualified contractor on a price and schedule the work for
the summer of 2015.
Casagranda pointed out that many Lowell Point residents complained about the air quality at
night,and requested that air quality testing also be conducted during the nighttime,or even for a full
City of Seward,Alaska City Council Minutes
August 11, 2014 Volume 39, Page 375
24-hour period.In response to Darling,Long said the Lowell Point Sewage Lagoon dredging project
} had been delayed for many reasons, and wanted to focus instead on obtaining funding and solving
the problem.Terry echoed Casagranda's concerns and said if a tester was coming down to test,then
she wanted to take advantage of that opportunity to get as many tests done, as thoroughly, as
possible.
In response to Butts, Casey said the Public Works Department had gas detectors that staff
was trained and capable of using. The contractor that was coming tomorrow would be bringing the
same machine. Squires said he had personally borrowed the Seward Fire Department's gas detector
last Thursday and performed his own independent air quality test. Squires said his testing registered a
zero detect reading for hydrogen sulfide. However, he also said that by the time he finished his
testing and returned to town after one hour, he had a headache. He believed something was really
wrong and agreed that further testing needed to be done.
Bardarson requested administration prepare to address the priority lists in September and the
budget in October.
City Attorney's Report,Eric Wohlforth stated his firm had worked with administration on
administrative matters,employment issues and records requests.He worked on documents related to
the proposed sale of the Jesse Lee Home property, title research on the land transfer for the Spring
Creek Correctional Center, and various other matters.
Terry asked Wohlforth if he had reviewed the upcoming Harmon Properties,LLC lease and
he said he would review the documents for that proposed lease prior to its coming before council.
Other Reports, Announcements and Presentations - None
PUBLIC HEARINGS -None
UNFINISHED BUSINESS -None
NEW BUSINESS
Resolution 2014-065,Authorizing The City Of Seward To Issue Harbor Improvement Revenue
Refunding Bonds, 2014 In The Principal Amount Of Not To Exceed $3,675,000 To Refund
Certain Outstanding Harbor Improvement Bonds Of The City,Fixing Certain Details Of Such
Bonds And Authorizing Their Sale, And Providing For Related Matters.
Motion (Terry/Casagranda) Approve Resolution 2014-065
In response to Bardarson, Finance Director Kris Erchinger and City Attorney Eric
Wohlforth clarified that the city could add any revenue funds, but not grant funds, to the Harbor
Enterprise Fund in order to meet the bond payments.Erchinger added there were several alternatives
that could be considered to cover bond payments before the city would have to increase rates,
including reducing operating expenses at the harbor or transferring funds from the General Fund.
Wohlforth added that approach would be a refinancing approach more than refunding.
City of Seward, Alaska City Council Minutes
August 11, 2014 Volume 39, Page 376
In response to Butts, Long said the city was not taking on any new obligations, but was
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essentially consolidating two existing bonds.This represented a significant cost savings opportunity
to the city by providing for lowered payments over the same term.Wohlforth added the precise cost
savings would not be determined until early September when the bonds were sold.
Motion Passed Unanimous
Resolution 2014-068,Approving A Short Term Lease Agreement With Raibow Fiberglass And
Boat Repair, LLC For Additional Land At The Seward Marine Industrial Center.
Motion (Terry/Casagranda) Approve Resolution 2014-068
Harbormaster Mack Funk directed council to laydown language that would amend the
effective date of this resolution,which was advised to Funk by Wohlforth's colleague,Will Eamhart.
Wohlforth clarified the effective date of the lease was the date it was negotiated by the City Manager,
which was July 24, 2014. If this resolution was approved tonight, the lease would continue
uninterrupted, but there would be the potential for a 30-day suspension period as well.
Terry challenged Funk's interpretation of the code wherein the effective date was retroactive
to the negotiation date. Wohlforth responded that his interpretation was the effective date for a short-
term lease was retroactive, but subject to council approval.
Motion to Amend (Terry/Bardarson) Amend Resolution 2014-068 by changing mai
Section 2 to read: "This lease was effective
on July 24, 2014. This resolution shall
continue the lease, but is subject to
suspension for the first thirty (30) days."
Motion Passed Unanimous
Other New Business Items
Council scheduled a work session to discuss the Lowell Point Sewage Lagoon on August 18,
2014 at 6:00 p.m. Council requested that administration invite M.L. Foster and White
Environmental Consultants to attend the work session.
INFORMATIONAL ITEMS AND REPORTS
June 2014 Providence Seward Medical Center Financial Report.
COUNCIL COMMENTS
Terry thanked the Electric and Public Works Departments for completing the cross walks
Noland signage at the Electric Warehouse. She implored Seward citizens to apply for the Planning &
Zoning Commission.
City of Seward,Alaska City Council Minutes
August 11, 2014 Volume 39, Page 377
Butts thanked all the Lowell Point residents who came out to speak tonight.He asked people
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to speak up,but when making statements to make sure they're stating facts and not spreading rumor
or conjecture. He congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps on
receiving the President's Service Award this evening.
Casagranda personally apologized to Lowell Point residents for not doing more to help their
situation.
Squires sympathized with Lowell Point residents, and although he could not take
responsibility for past council actions, he ensured Lowell Point residents that the current council
would hold the City Manager accountable and the issue would be addressed during the annual
evaluation process, if necessary. He said tonight's recipients were well deserving of the President's
Service Award.
Darling congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps, and
thanked all volunteers for pitching in. She thanked Lowell Point residents for coming and speaking
out, and ensured them that council was concerned and addressing the issue.
Long encouraged people to vote.
Bardarson congratulated Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps,
thanked the Lowell Point residents, Harmon Construction for the bus stop glass repair, and wished
everyone good luck in the Silver Salmon Derby.
CITIZEN COMMENTS
Lynda Paquette said the research she had performed indicated that the gas monitoring
equipment that Casey mentioned was designed for confined spaces,and not for out-of-doors testing.
She believed this was because high levels of hydrogen sulfide did not normally exist in high levels
out-of-doors. She reported on a spontaneous health poll she conducted on Lowell Point residents
with the following complaints: 1 person with asthma,55 people with eye complaints,48 people with
shortness of breath, 48 people with fatigue, 48 people with loss of appetite, 53 people with
headaches,47 people with irritability,44 people with loss of memory,and 44 people with dizziness.
Sue Lang thanked the city for scraping Lowell Point road today. She thanked Lynda Paquette
for her time and efforts to perform research, get questions answered and provide communications
with the residents of Lowell Point.
Teri Arnold thanked council for listening tonight and believed they would make something
happen.
Ron Wille spoke about the harbor bonds. He said the passenger head tax was originally
created to pay for E Float renovations and fish cleaning stations,and was intended to be sunset,but it
never was.Instead,the head tax rate was increased and used to fix other docks.Now,he believed the
cycle of passenger head tax and bonds would never end. He encouraged council to shorten the time
frame and pay off the bonds sooner.
City of Seward,Alaska City Council Minutes
August 11, 2014 Volume 39, Page 378
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
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Squires said the gas detectors owned by the city were designed to work in the out-of-doors
and he thought that White Environmental had different equipment that was capable of testing for a
24-hour period.
Butts said the gas detectors owned by the city were calibrated,and many people on staff and
volunteer fire fighters were trained on how to use and maintain them.He visited Lowell Point today
for the second time to speak with residents and agreed the smell was bad.
Casagranda requested that White Environmental Consultants be contacted to ensure they
brought the necessary equipment to test out-of-doors and for a 24-hour period.
ADJOURNMENT
The meeting was adjourned at 9:08 p.m.
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