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HomeMy WebLinkAbout10222018 City Council Packet Seward City Council Agenda Packet i ! s�� r., w 21A11� 4r e qft � 5 � rj 4 •• PIC 1 Harbormaster of the Year Award Winners Jean Barrett(Dillingham) & Norm Regis (Seward) Monday, October 22, 2018 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward,Alaska CITY COUNCIL MEETING AGENDA AII-AmericaCity {Please silence all cellular phones during the meeting} October 22, 2018 7:00 p.m. Council Chambers David Squires 1. CALL TO ORDER Mayor Term Expires 2019 2. PLEDGE OF ALLEGIANCE Vice Mayor A. SWEAR INNEWLYELECTED OFFICIALS. Term Expires 20XX 1. Sharyl Seese, Council Member, Term Expiring October, 2021 Sue McClure 2. John Osenga, Council Member, Term Expiring October, Council Member 2021 Term Expires 2019 3. Kelley Lane, Council Member, Term Expiring October, 2020 Suzi Towsley 3. ROLL CALL Council Member Term Expires 2019 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Jeremy Horn [Those who have signed in will be given the first opportunity to speak. Time Council Member is limited to 3 minutes per speaker and 36 minutes total time for this Term Expires 2019 agenda item.] Sharyl Seese 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by Council Member asterisk(*). Consent Agenda items are not considered separately unless a Term Expires 2021 council member so requests. In the event of such a request, the item is returned to the Regular Agenda] John Osenga Council Member 6. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Term Expires 2021 A. Proclamations and Awards —None B. Chamber of Commerce Report Kelley Lane C. City Manager Report...................................................pg. 4 Council Member 1. Investigation Report Term Expires 2020 D. City Attorney Report...................................................pg. 15 [The City Attorney Report is being provided in tonight's agenda Jeff Bridges packet, but will not be discussed until the November 26, 2018 Interim City Manager meeting when the City Attorney is present.] E. Other Reports and Presentations Brenda Ballou 1. Homeless Connection by Carolyn Roloff, M.D. City Clerk 2. Providence Seward Medical & Care Center Report by Joe Fong Will Earnhart City Attorney City of Seward, Alaska Council Agenda October 22, 2018 Page I 1 7. PUBLIC HEARINGS [Those who have signed in will be given the first opportunity to speak. Time is limited to 5 minutes per speaker. Anyone wishing to speak a second time may do so only after all other persons have spoken, and then for I minute.] A. Ordinances for Public Hearing & Enactment 1. Ordinance 2018-009, Amending The Zoning And Land Use Plan Designation Of City Owned Lot 7A, Fort Raymond Subdivision Replat Number 1, Located At 2101 Dimond Boulevard, From Institutional (INS) To Auto Commercial (AC).............pg. 17 8. UNFINISHED BUSINESS A. Items Postponed from Previous Agenda 1. Approval of September 24, 2018 Regular Meeting Minutes. 9. NEW BUSINESS A. Resolutions *1. Resolution 2018-084, Approving Amendment 91 To The Employment Agreement With The City Clerk And Appropriating Funds.................................................pg. 38 B. Other New Business Items *1. Approval of the October 1, 2018 Special Meeting Minutes.............................. pg. 44 *2. Approval of the October 8, 2018 Regular Meeting Minutes............................. pg. 48 3. Nominate, elect, and swear-in a council member as Vice Mayor......................pg. 57 4. Appoint a council liaison or direct individual Boards & Commissions to give periodic reports to the City Council................................................................................pg. 58 5. Appoint a city representative to the Kenai Peninsula Economic Development District (KPEDD).............................................................................................................pg. 61 6- Appoint City Council Liaison to the Seward Community Health Center CoordinatingCommittee...................................................................................pg. 62 7. Discuss rescheduling or cancelling the Wednesday, December 26, 2018 regular City Council meeting. City offices will be closed from 12:00 p.m. on Monday, December 24, 2018 and all day on Tuesday, December 25, 2018 in observance of Christmas. 8. Schedule a training work session to review and discuss City Council Rules of Procedure, workflows,processes, and practices. (Target early to mid-December) 9. Amend the topic for the November 9, 2018 work session to be: 1) Discuss procedures for the permanent city manager hire, and 2) Review and discuss mid-cycle budget amendments. 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. City Clerk's memo announcing City Clerk's office closure November 13-14, 2018.......................................................................................................................pg. 63 B. On-Going City Projects and Goals.......................................................................pg. 64 C. August, 2018 Financial Reports for the City of Seward and Providence Seward City of SewWWMgW Care Center................................................pg. 68. Council Agenda October 22, 2018 Page 2 2 D. Certificate of Achievement awarded to City of Seward by Health Resources and Services Administration (HRSA).........................................................................pg. 137 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. EXECUTIVE SESSION A. Go into executive session to discuss negotiation strategy for the APEA contract. 15. ADJOURNMENT City of Seward, Alaska Council Agenda October 22, 2018 Page 3 3 CITY OF SEWARD Jeff Bridges,Interim City Manager P.O. Box 167 Telephone (907) 224-4047 Seward,AK 99664 Facsimile (907) 224-4038 MANAGER'S REPORT October 3, 2018— October 19,2018 The following purchase orders in the amount of$5,000.00 or more have been approved by the City Manager since the last council meeting: October 3, 2018 — October 19, 2018 DATE DEPT TO WHO WHAT FOR AMOUNT 10/11/18 Water Jaffa Construction Lowell Canyon -water tank $548,376.00 (Public Works) refurbishment (RES 2018-060) ADMINISTRATION September 30 to October 13. October 1,2018 9:00 am Teleconference with Brad Gilman (Federal Lobbyist) and Assistant City Manager Hickok. 11:00 am. Meeting with Mica Van Buskirk Regarding Lowell Point Road. 12:30 am. Staff discussion regarding upcoming arbitration. 2:00 pm. Meeting with Denny Hamilton regarding the airport. 3:30 pm. Meet with Craig Ambrosiani of the Seward Community Health Center 5:00 pm. Special City Council Meeting October 2,2018 7:00 am. Travel to Soldotna with Assistant City Manager Hickok to meet with Michele Blackwell of Senator Murkowski's staff. 1:00 pm. Tour of the flood control area with Stephanie Presley. October 3,2018 9:00 am Staff meeting. 12:00 pm PACAB meeting 3:30 pm. Meeting with Mary Tougas of the Seward Library Association. October 4,2018 9:00 am. Meeting with Jim McCracken regarding subdivision utilities. 11:00 am. Meeting with Linda Paquette regarding Lowell Point area. 2:00 am. Meeting with City Attorney and Assistant City Manager Hickok. 6:00 pm. Civil Discourse—Seward Public Library and Museum. October 5,2018 9:00 am. Teleconference with Eric Meyers, John Foust, Brennan Hickok, Pat Gillis regarding joining of the peninsula electric transmission systems. 12:00 pm. City Council workshop. 2:30 pm. Discussion with Fire Chief Eddy Athey and Assistant City Manager Hickok regarding the City's Hazardous Mitigation Plan. October 8,2018 11:00 am. Negotiations with AEPA. 7:00 pm. City Council Meeting 4 October 9,2018 8:00 am. Harbormasters Conference Opening Session. 10:00 am Blue Pipeline Teleconference. 12:00 pm. Rotary Meeting. 2:00 pm. Meeting with Brad Snowden. 4:00 pm. Meeting with Seaview and Community Health Center. October 10,2018 9:00 am. Staff Meeting 12:00 pm. Luncheon with Senator Micciche 4:00 pm. Meeting with Sheryl Seese on Seaview. 6:00 pm. Harbormaster's Dinner. October 11,2018 9:30 am. Governor Walker's signing of SB92. 12:00 pm. MOU meeting with Seaview and Community Health Center. 4:30 pm. Seward Town Hall with Governor Walker. 6:00 pm. Community session with Senator Micciche. October 12,2018 12:00 pm. Chamber of Commerce Lunch 3:00 pm. Meeting on subdivision utility extension strategies. October 13,2018 Morning to midafternoon we had a flood event at the Lowell Point Falls. Public Works Director Doug Schoessler deployed available staff and equipment. He called in support from Metco and Hamilton Construction. Dan Nelson of Borough Emergency Management came down to evaluate this situation and other flooding events taking place in the area particularly on Dieckgraeff Road leading to the transfer station. This road was eventually closed. Declaring a State of Emergency was discussed and eventually the City gave notice to the Borough we intended to issue the declaration and leave it open pending the upcoming week of rain. At 3:00 pm. Borough Mayor Charlie Pierce came out to review the situation at Lowell Point and Dieckgraeff Road. The Borough will be issuing a state of emergency declaration as well. In addition to the activities listed above I spent time on the investigation the Council requested and prepared the Request for Proposal for the review of administration and sent it to the Council subcommittee working on that issue. HARBOR • Conducted construction meetings with Hamilton Construction and R&M for the Breakwater project on 10-4-18 and 10-11-18. • The 330 ton will require a two-day shut down when the paving company arrives • Held construction meetings with PND and Hamilton Construction on 10-9-18 for the South Harbor Launch Ramp. • The South Harbor Launch Ramp is closed for construction; scheduled completion date is May 2019. • The new fisherman float is in place and electrical and water services are being installed. • The piling is installed at the North Dock. We are currently waiting for fender installation which is estimated to be complete by the end of October. • The crane has been installed and has been tested to lift 16,000 lbs. O • The water to the floats has been turned off for the winter. We have 4 sites that will supply year-round water: The end of F-float, the beginning of Z-float, the T-dock and on the upland trestle of F-float • The Harbormasters Conference was a great success with over 100 people in attendance. • During the Harbormasters Conference, Governor Walker signed SB92 the Derelict Vessel Act. 5 PUBLIC WORKS Director: -Joined the Kenai Peninsula Borough Representatives from the SBCFSA (Seward/Bear Creek Flood Service Area), City Administration, and Department representatives to show them the tunnel outfall and inlet, the Lowell Canyon drainage and facility, and the Japp Creek drainage and levee. -Met with the railroad and contractors regarding gravel removal at the Lowell Canyon falls area. -Worked with USGS (United States Geological Survey) group to assess the tunnel outlet for installing equipment to measure velocity and depth of water exiting the tunnel. -I was fortunate enough to attend the Alaska Association of Harbormasters and Port Administrators Convention meet and greet. Great job by all of those who put that event on so successfully! �r Tour of Lowell Canyon drainage and flood issues. Water,Wastewater Utilities: Water shutoffs continued this week in the harbor and campgrounds. New personnel are receiving training and certifications and are happy with their progress. We are waiting on replacement parts to repair a blower and a transfer switch at our facilities. Streets: New personnel are getting familiar with their areas for winter sanding and snow removal and are grading gravel roads when time allows. Staff is also checking and cleaning off storm drain inlets. The fall leaves need to be removed so water can drain quickly. Sign work is being done as needed. 6 Shop: We are working on a grader hydraulic hose replacement and dealing with loader front end issues. Routine maintenance and repairs for fleet vehicles and equipment continues. I met with a fencing contractor to get pricing on repairs for the yard fence for added security. Buildings: The LED lighting installation went well in the City Hall Annex. We made a temporary fix on the TYC (Teen &Youth Center) double doors while P&R staff seeks quotes for new doors. PARKS AND RECREATION (also known as: SPRD) Teen Rec Room (TRR) • Attendance for month of September through October 11 0 32 middle school and 10 high school students for a total of 42 attendees 0 Special event attendance: Middle School Masquerade - 20 Cross-Country Team Dinner—20 • Total October Attendance: 82 • Upcoming events o High School Halloween Dance Party at TRR, Friday October 26th, time TBD (to be determined) o Pumpkin Prowl, October 27th at 6:30PM, Family Masquerade to follow 7:OOPM-9:OOPM o Halloween Carnival, October 31st at railroad terminal • Proj ects o Removal of unnecessary/surplus items from TRR o Organizing activities and music for high school dance party o Preparing with Leadership Council for Pumpkin Prowl and Halloween Carnival yr +. Halloween Middle School dance parry group photo Seward High Cross-Country �# running team � "Ati celebrated their ' team dinner at the teen Rec Room. Leadership Council hosted. r Al Sports &Recreation • Fall 2018 Competitive Volleyball League played their first matches Wednesday, Oct 10, with "Alehouse" defeating "Tony's", two games to one. Tony's won the first game, 25 to 19. Alehouse won the second game, 25 to 19, and Alehouse won the third and final, faster game, 15 to 13. Alehouse is currently our league leader. In other league action, Marine Debris defeated Just Play due to a forfeit. • Fall 2018 sports leagues registration is still open; Competitive Volleyball, Adult Basketball, and Adult Racquetball. • SPRD Sauna is open to adults. The Sauna is open Tuesday through Thursday, 6:30 to 8:30, with alternate hours for male and female visitors. Call 224-4054. • Sports and Recreation is hosting our first ever, Annual Pass, PFD sale now through October 30th. ❖ Annual passes normally $300 will be 50% off regular price, which is $150. ❖ Rock wall annual passes are regularly $600, PFD sale is $300, this month only, and includes the rock wall use, and the use of the rest of the S&R facility during open hours. ❖ Tot, youth, and elder annual passes are also on sale for a PFD price of$150, during October, only. • The Sports & Rec office at the AVTEC Gym will close early, at 5 pm, on Wednesday, Oct 31 for the Halloween Carnival. All ages are invited and welcomed to the Carnival. Entry is free, but bring some cash to pay for games and purchase foods and dessert. • SPRD is seeking adult Rock Wall volunteers to learn and teach, 224-4054. • Adult indoor Archery league short-season will start soon. Volunteers,please call 224-4054. The winter adult long season will begin after the New Year in January. This program is only affordable through the donated efforts of adult volunteers. Email sprdgCityofSeward.net 8 • Athletes who can officiate volleyball or basketball are encouraged to contact SPRD at 224-4054. Parks and Rec staff will forward officials' contact information to our vendor who will contract and schedule and pay sports officials. • SPRD is hosting a Spooky Skate Friday, October 19, from 5:00 pm to 7:00 pm at the AVTEC gym. Costumes with high visibility are encouraged! Free entry to the event for all Annual Pass holders for all other skaters the fee is $5 adult, $3 youth/senior, $2 under age 5. Free skate rental with drop in fee. Campground & Park Maintenance The City of Seward is now accepting payment for cemetery plot reservations. Individuals pay $500 per cremains or burial site in the new cemetery section. See forms online at www.cityofseward.us/cemetery. Final items to do for the season: • Turf mowing and fall turf maintenance. • Shut down the four summer-only restrooms and the shower house. • Cleaning up the rock fire rings in Waterfront Park and Forest Acres Campgrounds. • Moving summer picnic tables for winter storage and away from snow storage or winter access points. • Removing and storing the RV bumper or parking stops. • Installing winter snow marker flags identifying City assets to protect from snow and ice removal. • Removing and storing wooden park and campgrounds signs and picnic tables for repairs, sanding and staining. • Rebuilding park bench for Branson pavilion. • Gas-powered tools' maintenance. • Cleaning Tent Area Campground fire rings. • Removing graffiti. • Brushing at Forest Acres Park. • Hoben Park fountain drained for winter. • Preparing to assist with TYC Halloween programs, as needed. • We had a record-breaking revenue summer. • Campgrounds are enjoying scores of great customer reviews on Google business. • We have been receiving the first, few cemetery reservations. • Cemetery site reservation forms now online. www.cityofseward.us/cemetery Teen & Youth Center (TYC) Coordinating upcoming Halloween events: Pumpkin Prowl, Family Masquerade and Halloween Carnival. Still accepting booth registrations and seeking volunteers. • Preparing a"ACES (Adverse Childhood Experiences) and Resiliency"presentation for the ARPA (Alaska Recreation &Park Association) state's educational conference • "First Friday Fun" event hosted 13 kids who had a blast. • Training staff continues. • Preparing a training presentation on "Youth& Teen Group Management" for SPRD Program staff. Paid Parking Department is closed for the winter. We will continue to invoice and collect unpaid parking ticket fines. 9 ••-m� :, fit-. - u ro if .CIF a r r . a l i i i i 1 11 �i Alaska Seward Alaska Passports Notaries Proctored Public Library Library Digital Exams Compute Catalog Users Library Use Use Use May 4053 657 422 7 10 7 998 June 3943 688 428 10 8 6 1118 July 4491 726 554 23 29 8 1088 Aug3590 645 520 23 20 7 1253 Sept 3007 584 489 17 16 6 866 Totals 1 19,084 1 3,300 2,413 80 83 34 5,323 Play Time Saturday 12:00pm-4:00pm in the Children's Room Come check out our collection of themed books, a new assortment of toys, and other activities! Each week has a new theme and selection. Story Time Friday, October 26,2018 at 11am in the Children's Room We will have a Story Time Costume Party! Come dressed in your favorite costume or try out our special costumes once you get here. After Story Time is over, we will walk through the stacks in the main Library area to Monster Mash! It will be a splendid good time! Social Security 101: Everything You Wanted to Know About Social Security Monday, October 22,2018 12:00pm— 1:30pm in the Upstairs Meeting Room Back by popular demand! Come to our FREE OWL (Online With Libraries) workshop from Social Security. You will get answers to questions like: When are you eligible to receive retirement benefits? How does early retirement affect your benefits? Do you qualify for disability, survivors, and spouse benefits? How do you get the most from your benefit? What is the future of Social Security? When should you file for Medicare? Learn how to use my Social Security online account and other online services. You should go to www.socialsecuriiy.gov/myaccoun to create a my Social Security account and print out your Social Security Statement before attending the workshop. Frankenreads Display Starts Monday, October 15,2018 through Saturday,November 17,2018 at the Library Front Desk All Frankenstein materials from the Library Collection will be on display and are available for check out. This year is the 200th Anniversary since Shelley's original novel was published. Celebrate Frankenstein's 200th Anniversary by reading a silly monster book to your child, watching the hilarious movie, Young Frankenstein with your friends, or read the classic book solo or with the Seward Community Book Club! Check out frankenreads.org for more information. Mary Shelley: The Life that Inspired Frankenstein 120 minutes,Rated PG-13 Saturday, October 27,2018 2:00pm-4:00pm in the Community Room Come watch the life of the brilliant writer Mary Wollstonecraft Godwin (Elie Fanning) - author of one of the world's most famous Gothic novels 'Frankenstein' - and her fiery, tempestuous relationship with renowned romantic poet Percy Bysshe Shelley (Douglas Booth.) See the internal heartache and pain that birthed a character who loomed large in popular culture for centuries to come. Snacks provided with discussion afterwards as a part of our Frankenreads Program. 11 Community Conversations: Women in the Military Tuesday, Oct 30,2018, 6:00-7:30 pm, Community Room,light refreshments Do you believe in the power of conversation to enhance our lives and communities? We had a genuine and insightful discussion about being Homeless in the Great Land, and more specifically in Seward, on Sept. 25th. We all walked away with a better understanding of what it means to be homeless in Seward and the breadth of the needs as well as some ideas how to help. Many thanks to those who attended! Join us on October 30th for a discussion about Women in the Military. What stories do we tell about women in the military? How do our stories shape women's choices and experiences? This conversation's springboard is "Stories We Tell and Stories We Don't," an article from FORUM magazine by Shannon Huffman Polson, a born and raised Alaskan and one of the first women to fly the Apache helicopter in the US army. You may read the article ahead of time at issuu.com/alaskahumanitiesforum/docs/web 1 forum fa112017/27. Many thanks for the Alaska Humanities Forum for the Facilitator Training Workshop in July, and the Kindling Conversation Kit and support for this program! This new program kicks off with an Alaska Humanities Forum Kindling Conversation Program. Send ideas for future Community Conversations to Director Kingsland at vkin_slg andgcityofseward.net. 5th Annual Open House Saturday,November loth, 1-4pm,Building Wide Join us for this special event for all ages and community members to celebrate our community with live music, fun activities, raffle prizes and food after our busy summer and shoulder seasons. We will have live music, several different craft activities, raffles, an interactive story panel, light refreshments, and more. You can also plan to"Can Your Fines"by bringing in dry food donations for the local food pantry and get your overdue fines forgiven all day long! More details to follow. Frankenreads & the Seward Community Book Club Saturday,November 17t at Itam in the Upstairs Meeting Room The Library will have multiple volumes of Frankenstein, Or the Modern Prometheus by Mary Shelley available for checkout starting October 8, 2018. This year is the 200th Anniversary since Shelley's original novel was published. Come discuss this influential classic and don't forget to bring a tasty dish to share! Patrons can pick up a copy at the Library Front Desk or can access the book through the Alaska Digital Library adl.overdrive.com where patrons can download the book or audiobook for FREE. All they need is their library card number and they can get instant access. ELECTRIC Number of new Job Orders started since Jan. 1, 2018: (44) *HIGHLIGHT* Vernon Willet has been very helpful and an outstanding resource in trying to resolve the meter issues/new meter order(s)with Potelcom and ITRON. He had proposed to supervise and test the implementation of the ERT (Encoder receiver transmitter)retrofits to ensure quality and success and has caught additional order/specification errors that would have cost us additional delays and issues. Vernon continues to work with Potelcom to improve both our process and theirs to minimize future issues. Great job Vernon! Andy Baker of YourCleanEnergy and Michael Maloney of Canyon Hydro will be in Seward Tuesday 10/16 and Wednesday 10/17 to do the site review portion for the Lowell Creek Canyon Hydro study (Tuesday) and to meet with the Electric Department and those other affected/involved City personnel and departments (Wednesday). 12 End of Construction Season (tentative end of construction is 10/19) - As always, the electric department will attempt to install/construct as many new jobs as the weather allows. Please contact the electric department if anyone becomes aware of a street light out using `Seward Listens!' on the City's website homepage. The crew will start fixing these as time allows, but please be patient with us as we continue to focus on getting job orders complete before freeze up. The Line Crew is currently doing clearing along Nash Road when weather and time from new jobs allow. And as construction season winds down, they continue to do an excellent job processing job orders and customer/service requests during the end of season crunch. The Line Crew responded to and fixed a small outage (approx. 60 users) in the Bear Lake subdivision on October 1 lth when a customer hit an underground primary line while digging without 811 locates for the area. Fortunately, no one was injured. We remind the public at large of the 811 DigLine motto "Every Did. Every Time.",inside the city limits or out, call before you dig. 811 is the federally designated call before you dig number that helps homeowners and professionals avoid damaging vital utilities. More information can be found athttps://www.81lak.com/ FINANCE The electric meter reading process has been reduced from a 10-day window to a one-day process. At this point, we are receiving electronic reads for 95% of the meters in our service area. The remaining meters are awaiting replacement; a large batch of demand meters which were ordered 5 months ago were delivered without radio transmitters despite clear ordering instructions, and we are told that there has been a manufacturing delay which affects our ability to timely change out the remaining meters. These meters (approximately 70)will continue to be read manually until they are replaced, likely in the Spring. The affected meters are not residential meters, but are demand meters on businesses. The new meter reading process has resulted in significant efficiencies, improvements in reading accuracy and consistency, and will eventually save the ratepayers more than $50,000 annually. Finance staff have attended recent training in intermediate and advanced governmental accounting, PERS and employee benefit programs, new meter reading software and hardware, investments, and new staff training on Payroll and Utility Billing. The Comprehensive Annual Financial Report for 2017 has been delivered to the City Clerk's office for distribution to Council members. Those not wanting a hard copy can return their copies to Finance to reduce additional printing costs. The electronic version of the CAFR is available online at: http://www.cityofseward.us/DocumentCenterNiew/4449 The lower winter electric rates will be effective on next months' utility bills (the bills which are due on November 20). The part of the bill that is affected by the lower winter rates is the portion charged by Seward Public Utilities reflected on the bill as the"Seward Utility Charge". For residential customers, this rate will be reduced from the current rate of$0.11533 to $0.0797, representing a 3 1%reduction in the portion of the rate charged by the City. For small general service customers, this rate will be reduced from the current rate of $0.12344 to $0.09017, representing a 27%reduction in the portion of the rate charged by the City. As a reminder, the COPA is not affected by the City's seasonal rate structure, as that charge reflects the actual charges passed directly through to our customers based on Chugach Electric Association monthly bill, including fuel. 13 t per'• C d w C wC tQ © ICI LnYry L. d C05 +. a w u C o Q IZU C C Z. %.)%i 1 I'mtz t � t ' ` O r40 Obi `wr, LZ,, It y t "O �4 ,fir, ►: Q © •� Oi O � �.1 tot �c n � •� � •v +� � � Y �'., � of •ICI w r_ .0 ci C! I c� � 'r 4j c C V ti Q, `� � Z '•O ,� b-0 � 'e� O r Ot C O O C C L. r �• �` Y~d Ct '� •� tjj � w by RS 4i C •y � C 'ts `''►,V � � p Cj `�" s •Q Os Oj�" Obi +�.. p +: •O lzj , Birch Horton Bittner & Cherot William A. Earnhart Respond to Anchorage Office T 907.263.7285 • F 907.276.3680 wearnhart@bhb.com October 17, 2018 Mayor and Members of the City Council City of Seward P.O. Box 167 Seward, AK 99664 RE: City Attorney Report for the period of September 1, 2018 through September 30, 2018 Dear Mayor and City Council: The following provides a general summary of work performed for the City during the month of September 2018, and the assignments, cases, and projects that generated this work. The categories are organized by open matters in our office. 1. General Matters: Attorneys from our office researched, analyzed, and responded to various issues raised by the City during the month of September, including: attending the September Council meeting; revising the interim manager contract, advising on various personnel issues; advising on public records issues; advising on allegations of fraud; advising on issues related to executive sessions; and several minor contract and land use issues. 2. Litigation: Attorneys in the firm spent a minimal amount of time responding to insurance council in two litigation matters. After receiving an unfavorable decision regarding Orion Marine's appeal of the dismissal of its case, we requested rehearing on the matter, which was denied. We are presently working with the administration to resolve this matter. 3. Organizing Activity: Negotiations have started with the SPEA/APEA. We are also working on a Letter of Agreement with the IBEW in regard to the two new positions under the existing contract. Attorney Will Earnhart responded to numerous matters raised by IBEW and APEA in regard to negotiations and employee management issues, and has been working with the administration in preparation for negotiations. 4. Total Hours Billed. The total number of hours billed by the firm for September 2018 is 94 hours for general matters. Of the 94 hours billed for general matters, approximately 20 hours were devoted to labor negotiation preparation and responding to personnel issues and 60 hours were devoted to Council meetings and related advice. The remaining time was primarily spent on contract review and Code 510 L Street, Suite 700,Anchorage,Alaska 99501-1959 1100 Connecticut Ave, NW, Ste 825,Washington, D.C.20036 T 907.276.1550•800.478 1550• F 907.276.3680 T 202.659.5800•888.482.4727•F 202.659 1027 15 507486\1006\00759856 Birch Horton Bittner & Cherot Mayor and Members of the City Council October 17, 2018 Page 2of2 advice. Initial indications for October are that billed fees will have returned to 2017 levels. Sincerely, BIRCH HORTON BITTNER & CHEROT William A. Earnhart cc: Acting City Manager 16 507486\1006\00759856 Sponsored by: Planning and Zoning Commission Introduction Date: October 8, 2018 Public Hearing Date: October 22, 2018 Enactment Date: October 22, 2018 CITY OF SEWARD, ALASKA ORDINANCE 2018-009 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE ZONING AND LAND USE PLAN DESIGNATION OF CITY OWNED LOT 7A, FORT RAYMOND SUBDIVISION REPLAT NUMBER 1, LOCATED AT 2101 DIMOND BOULEVARD, FROM INSTITUTIONAL (INS) TO AUTO COMMERCIAL (AC) WHEREAS, the City Council held work sessions on September 25, 2017, February 28 and April 9, 2018, to discuss the future use of Lot 7A Fort Raymond Subdivision Replat Number 1; and WHEREAS, the consensus at each of the above mentioned work sessions was to develop the property for mixed commercial and residential uses; and WHEREAS, the Auto Commercial district allows for land uses that include residential developments along with a wide range of commercial uses; and WHEREAS, the Auto Commercial district was established to provide areas to accommodate highway-oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic, and parking; and WHEREAS, Lot 7A, Fort Raymond Subdivision Replat Number 1 is approximately 11 acres and is abutting the Auto Commercial Zoning District to the south, and WHEREAS, the public notification process was complied with and the appropriate public hearing as required by Seward City Code § 15.01.040 was conducted by the Planning and Zoning Commission on September 4, 2018, and WHEREAS, at their September 4, 2018 meeting, the Planning and Zoning Commission held a public hearing and recommended City Council approval of the proposed Land Use Plan and Zoning Designation amendments included in this ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: 17 CITY OF SEWARD ORDINANCE 2018-009 Section 1. The Seward City Council hereby authorizes the amendment of the official Zoning Map of the City by amending the zoning designation of Lot 7A Fort Raymond Subdivision Number 1 from Institutional (INS)to Auto Commercial (AC). Section 2. This ordinance shall take effect ten (10) days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 22nd day of October, 2018. THE CITY OF SEWARD, ALASKA David Squires,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) 18 Council Agenda Statement Meeting Date: October 8, 2018 Through: Jeff Bridges, City Mana From: Jackie C. Wilde, Planner Agenda Item: Amending the Land Use Plan and rezoning of City- owned Lot 7A, Fort Raymond Subdivision Replat No. 1, located at 2101 Dimond Boulevard, from Institutional (INS) to Auto Commercial (AC) BACKGROUND & JUSTIFICATION: Attached for the Council's review and enactment is Ordinance 2018-009, amending the Zoning designation and Land Use Plan maps for City-owned Lot 7A, Fort Raymond Subdivision Replat No. 1, located at 2101 Dimond Boulevard, from Institutional (INS) to Auto Commercial (AC) (see attached maps). The Seward City Council held three public work sessions on September 25, 2017, February 28 and April 9, 2018 to discuss the future use of this property. At the meetings, the general consensus was to allow for a mix of commercial and residential uses. The Auto Commercial zoning district allows for a variety of land uses both residential and commercial, and is therefore the most appropriate zoning designation for this parcel. Parcels to the south along Seward Highway corridor, including the Chamber of Commerce, Coffee Cup and Safeway, are currently zoned Auto Commercial. The parcels to the north and west are zoned Auto Commercial and Institutional and include a fish processing business, school campuses, cemeteries and a military resort. The parcels to the east, across the Seward Highway are zoned Industrial and include the Leirer Subdivision and the Alaska Railroad. The City of Seward has requested this rezone in order to provide land suitable for future commercial uses allowed within the Auto Commercial District. Seward City Code (SCC) §15.01.035, Amendments, (b) (3) allows the consideration of this rezone as the area is contiguous to the requested Auto Commercial zoning district and also contains more than 1 acre. In order for the lot to be rezoned, the underlying Land Use Plan will also need to be amended. The Land Use Plan adopted with the 2030 Seward Comprehensive Plan recommends this area remain Institutional. However, the area contiguous to the south is recommended to remain Auto Commercial. 19 SCC 15.05.025. Land use districts--Established, definitions a) Established. The city is hereby divided into land use districts which shall be bounded and defined as shown on the official land use map. This official map, together with all explanatory matter thereon, as exhibited at the time of public hearing, is hereby adopted by reference and declared to be apart of this chapter. The requested Zoning and Land Use Map change of the area for rezone is Auto Commercial (AC) defined in SCC 15.05.025 (b). as (8) Intended to provide areas to accommodate highway oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic and parking, and which also serve the offices and nearby residential areas, and which do not materially detract from nearby residential areas. Recognizing that the primary concern of all zoning actions is to promote public health, safety and general welfare (SCC 15.01.010), Community Development recommends this rezone for the following reasons- 1. This rezone will allow for commercial and business use of Lot 7A, Fort Raymond Subdivision Replat No .1, which is consistent with the proposed uses identified during three public work sessions held by the Seward City Council on September 25, 2017, February 28 and April 9, 2018. 2. At this time the community would be better served by allowing more commercial activity along the Seward Highway corridor, while creating and preserving adequate non-commercial areas outside of the highway corridor for residential development. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (2030, approved by Council 2017): Volume I, page 13; Section 3.2.1.1_ 1. Use city-owned land and tidelands to encourage feasible and sound X economic development by setting development standards and erformance periods through the leasing process. Strategic Plan (1999): 2. Promote residential and commercial development inside the City. (page X 9) At the time of this review no public concerns have been submitted to staff. As required by the City Code, neighboring property owners within 300 feet of the area subject to review were notified of the proposed rezone and amendment to the Land Use Plan. The Planning and Zoning Commission held the public hearing September 4, 2018 and approved Resolution 2018-014 recommending City Council approval of the attached Ordinance 2018-009, amending the Zoning designation of Lot 7 A Fort Raymond Replat Number One from Institutional (INS) to Auto Commercial (AC). No public comments were received by staff or during the Public Hearing. 20 FISCAL NOTE: The City of Seward will have no costs associated with this amendment to the Land Use Plan and change of zoning designation. Approved by Finance Department_ ATTORNEY REVIEW: Yes No X At the time of this review no public concerns have been submitted to staff. RECOMMENDATION: The Seward Planning and Zoning Commission and Staff Recommend: October 8, 2018 the City Council introduces Ordinance 2018-009 amending the zoning and Land Use Plan designation of City owned Lot 7 A, Fort Raymond Subdivision Replat No. 1, located at 2101 Dimond Boulevard, from Institutional (INS)to Auto Commercial (AC) October 22, 2018 the Council conducts a public hearing and enacts Ordinance 2018-009. 21 City of Seward,Alaska Seward Planning&Zoning Commission Minutes September 4, 2018 Volume 7,Page 301 APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Fleming/Swann) Approve agenda and consent agenda Motion Passed Unanimous The following item was approved on the Consent Agenda: Approval of August 7, 2018 Regular Meeting Minutes New Business Items requiring a Public Hearing Resolution 2018-014 of The Planning And Zoning Commission Of The City Of Seward, Alaska, Recommending City Council Approve The Attached Ordinance Amending The Zoning And Land Use Plan Designation Of City Owned Lot 7A, Fort Raymond Subdivision Replat Number 1, Located At 2101 Dimond Boulevard, From Institutional (INS) To Auto Commercial(AC) Wilde stated that City Council held three public work sessions to discuss potential uses of this property. At the meetings, the general consensus was to allow for a mix of commercial and residential uses. The Auto Commercial zoning district allows for a variety of land uses both residential and commercial, and is therefore the most appropriate zoning designation for this parcel. In order for the lot to be rezoned, the underlying Land Use Plan will also need to be amended. The Land Use Plan adopted with the 2030 Seward Comprehensive Plan recommends this area remain Institutional. However the area contiguous to the south is recommended to remain Auto Commercial. At this time the community would be better served by allowing more commercial activity along the Seward Highway corridor, while creating and preserving adequate non-commercial areas outside of the highway corridor for residential development. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Hearing no one wishing to speak, the public hearing was closed. Motion (Fleming/Charbonneau) Approve Resolution 2018-014 of The Planning And Zoning Commission Of The City Of Seward, Alaska, Recommending City Council Approve The Attached Ordinance Amending The Zoning And Land Use Plan Designation Of City Owned Lot 7A, Fort Raymond Subdivision Replat Number 1, Located At 2101 Dimond Boulevard, From Institutional (INS) To Auto Commercial (AC) 22 City of Seward Alaska Seward Planning&Zoning Commission Minutes September 4, 2018 Volume 7, Page 302 Fleming asked if this parcel would now be re platted. Wilde stated that rezoning the property is the first step. Staff has already been reviewing concepts for further subdividing the property into lease parcels, and will move forward pending Council direction. In response to Fleming, Wilde stated that this would come back before the Commission as a replat. Ecklund asked what the Municipal Land Management Plan stated in regards to this property. Wilde replied that the Plan recommended the City lease the property. Swann asked if it would not be appropriate to rezone other City-owned parcels along the Seward Highway from INS to AC. Wilde gave an overview of proposed uses for some of these properties, which include the properties containing the Bittick Bike Park and the Forest Acres Campground and stated that the current zoning designation is appropriate at this time. Motion Passed AYES: Swann, Ambrosiani, Seese, Charbonneau, Fleming, Hatfield, Ecklund NOES: none UNFINISHED BUSINESS—None NEW BUSINESS Resolution 2018-015 of The Planning And Zoning Commission Of Seward Alaska Recommending That The Alice Pickett Memorial Animal Shelter Be Relocated To Lot 6A-2 Fort Raymond Subdivision Replat Number Three, Located At 605 Sea Lion Avenue,Within The Institutional (INS) Zoning District Wilde stated that in selecting the proposed site for the relocation of the animal shelter,planning staff has taken into consideration the public input received at the August 7, 2018 P&Z meeting, and looked for City land that was away from neighborhoods. Wilde and Bacon conducted a site visit to Lot 6A-2 to take measurements, and then researched current uses and easements on the property. It was determined that a 4000 square foot area of flat ground,unencumbered by easements, existed on a portion of the Lot off Sea Lion Avenue. A map has been included in the packet and is on display on the wall showing the possible site of the new shelter. Wilde discussed potential access points for the building that will be determined as the site planning process moves forward. Wilde told everyone that currently animal shelters are not allowed in the Institutional Zoning District, and if the Commission passes this resolution then Planning staff will bring forward an ordinance change to modify the land uses allowed table. Wilde stated that the Community Development department has received multiple phone calls in support of this location for the new animal shelter. Motion (Fleming/Swann) Approve Resolution 2018-015 of the Planning And Zoning Commission Of Seward Alaska Recommending That The Alice Pickett Memorial Animal Shelter Be Relocated To Lot 6A-2 Fort Raymond 23 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page CALL TO ORDER The September 24, 2018 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Squires. OPENING CEREMONY Lt. Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Squires presiding and Marianna Keil Ristine Casagranda Sue McClure Suzanne Towsley Jeremy Horn Sharyl Seese comprising a quorum of the Council; and Jeff Bridges, Interim City Manager Brenda Ballou, City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Brad Snowden said the governor would be visiting Seward on October 11, 2018, and Snowden thought it would be a good opportunity for the city to speak with him about the Seward airport,particularly about getting a 6,000 foot runway. Jane Belovarac and Christiana Smith were members of S.O.S. Pets, and they wanted to express their support for Resolution 2018-080. The land was in a good location near the schools,and was also a good location for emergency evacuations of pets since the high school served as an evacuation site for citizens. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda McClure removed August 27, 2018 minutes from consent. Seese removed Resolution 2018-080 from the consent agenda. Motion Passed Unanimous 24 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page The clerk read the following approved consent agenda items: Approval of the August 13,2018 Regular Meeting Minutes. Approval of the August 16,2018 Special Meeting Minutes. Approval of the August 22,2018 Special Meeting Minutes. Approval of the September 10,2018 Regular Meeting Minutes. Resolution 2018-078, Requesting That The Council Adopt The 2018 Seward Historic Preservation Commission Priorities List. Resolution 2018-079,Authorizing Signatures For All City Bank Accounts And Rescinding All Previous Resolutions In Conflict Herewith. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Acknowledging Darryl Schaefermeyer's retirement from the Alaska SeaLife Center after 25 years of service Fire Prevention Month Recognizing Mike& Susie McHone for Emergency Services with Seward Volunteer Fire Department, Bear Creek Volunteer Fire Department, and Seward Volunteer Ambulance Corps Recognizing Mike McHone's retirement from the City of Seward after 30 years of service Chamber of Commerce Report. Cindy Clock reported that membership was up to 415 businesses. Elizabeth Hashem joined the chamber staff as the new Events Coordinator. Historically, the chamber saw between 14,000 and 16,000 visitors come through their doors,but this year there had only been 11,500 visitors; Clock attributed the downturn to more online visitation rather than in person. The Seward Business Network resumed meetings on the first and third Thursdays every month at 8:00 a.m. at the Breeze Inn restaurant. Twinklefest would be held the first weekend in December, 2018. The Blue Pipeline Open House was held September 22, 2018.Meet The Candidates Night would be September 26,2018 at 5:00 p.m.in council chambers. The next chamber membership luncheon would be September 28, 2018 and would feature Gary Stotler, a motivational speaker. The State Harbormasters Conference would be held in Seward October 8 — 12, 2018. Governor Walker would be holding a town hall meeting while he was here for the conference at the library at 4:30 p.m. on October 11, 2018. City Manager Report.Assistant City Manager Brennan Hickok reported the following purchase orders between $10,000 and $50,000 have been approved by the City Manager since the 25 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page last council meeting: None. Hickok introduced and welcomed Interim City Manager Jeff Bridges. The Harbormasters Conference would be October 8-12,2018; State Senator Peter Micciche would be at the conference on October 0, 2018, and Governor Walker would be at the conference on October 11, 2018 to sign SB 92 for derelict vessels. A new curator had been hired for the museum. Rebekah Ivy was commended for her professionalism during the recent unscheduled outage last week. Welcomed Becky Roy as the new payroll person. MIS Director Mike Meeks reported that the city had experienced a server crash last week; the MIS Department worked with Microsoft to get things up and running. Meeks also worked with Telalaska to repair a firewall issue. All systems were up and running as of today. In response to Towsley, Meeks said anyone who had a gap in their emails should notify Meeks. In response to Casagranda, Bridges said administration would bring forward the"pros"for opting back into Public Employees Relations Act(PERA). City Attorney Report. The City Attorney Report is being provided in tonight's agenda packet, but will not be discussed until the October 8, 2018 meeting when the City Attorney is present. Other Reports,Announcements and Presentations PND Engineers presentation on the proposed Seward cruise ship dock concepts PUBLIC HEARINGS Ordinances for Public Hearing & Enactment Ordinance 2018-006,Amending Seward City Code Title 6, Entitled "Purchasing, Contracts And Professional Services,"And Section 7.05.510,Entitled"Easements And Right-Of-Way," By Decreasing The Purchase Amount Limit The City Manager Is Authorized To Make Without Advertising Or Previous Action By The City Council From $50,000 To $10,000 In Any One Item And Adding Language To Section 6.05.010,Entitled"Purchases Of$50,000 Or Less," Require The City Manager To Report All Purchases Between $5,000 And $10,000 To The City Council. This ordinance was introduced on September 10, 2018 and is coming tonight for a public hearing and enactment. Motion (Keil/Casagranda) Enact Ordinance 2018-006 Bridges provided a laydown which showed a breakdown of purchase orders since 2014. Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. 26 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page Willard Dunham thought this ordinance was taking a step backward. In today's world, purchases tended to run a little higher in cost. He could understand why council might want to review some purchases, but thought smaller size purchases would be more troublesome. He cautioned council about getting too involved with purchases. No one else appeared to address the Council and the public hearing was closed. Casagranda said this ordinance had been discussed quite a bit when it was introduced; she brought this forward due to a lack of trust, and because other communities had lower spending limits. She understood that the intention with raising the spending limit to$50,000 previously was to improve efficiencies, but she didn't think it was appropriate anymore. Motion to Amend (Casagranda/Towsley) Amend Ordinance 2018-006 by striking "$10,000" and replacing it with "$30,000". Motion to Amend Passed Yes: Horn, Casagranda, Towsley, Seese, McClure, Squires No: Keil Main Motion Passed Yes:Seese,McClure,Towsley,Casagranda, Horn No: Keil, Squires Ordinance 2018-007,Adopting Seward Municipal Code Chapter 9.35,Entitled"Plastic Bags And Polystyrene Containers,"To Prohibit The Use Of Non-Biodegradable Plastic Carry-Out Bags,And Polystyrene Foam Disposable Food Service Ware In The City Of Seward. This ordinance was introduced on September 10, 2018 and is coming tonight for a public hearing and enactment. Motion (Keil/Casagranda) Enact Ordinance 2018-007 Bridges recommended amending the implementation date, and some ensuring that advance notice would be provided to business owners. Squires passed the gavel to Keil and declared a potential conflict of interest because he was co- owner in a retail store and they used plastic bags in the store.Keil declared that Squires had a conflict of interest. There was an objection from council over the ruling. A vote of council failed to overturn the ruling, and Squires left the dais. Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. Lori Landstrom was a board member of Sustainable Seward,which was a community group focused on reducing waste. She was speaking as a private citizen and not a board member. Landstrom said much of Seward's local economy relied upon marine services. She believed this 27 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page ordinance would go far to protect Seward's environment and future interests. She suggested an implementation date of Summer 2019 to allow stores and restaurants to use up their inventory. Brenan Hornseth thanked council for bringing this ordinance forward. He supported this action. Hornseth was a member of Sustainable Seward, but was speaking for himself. He was concerned with plastic bags and their effect on the environment. He encouraged people to use reuseable bags for shopping. He thought a 6-9 month implementation date would be appropriate. Regarding enforcement,Hornseth said Seward City Code addressed violations andpenalties;a code compliance officer may be a good idea, but there could simply be a lot of community support to enforce it. Lynda Paquette wanted to say how pleased she was with this ordinance coming forward. She said in Germany they moved away from using plastic bags by charging for them. Andy Bacon supported this ordinance, and thanked council for bringing this forward. He thought more and more communities were enacting ordinances of this type. He believed, from his own experience, that reusable grocery bags would catch on quickly once people realized that no plastic bags were available.He requested to eliminate the reference to the thickness of bags,and also to allow for a 6-9 month implementation roll out. Norm Regis recommended that the implementation date take into consideration that many seasonal businesses have already closed for the season;perhaps delay the implementation to the end of next summer. Anthony Baclaan was a member of Sustainable Seward, as well as a local small business owner. He was already using biodegradable containers at his business. Several business owners he spoke with had already started adopting the ban. Melody Jordan wished to see this ordinance enacted. The implementation date might be tough, but the adoption of this ordinance she thought would be painless. She had shopped in stores where plastic bags had been eliminated, and found it to be easy to accommodate. No one else appeared to address the Council and the public hearing was closed. Motion to Amend (McClure/Seese) Amend Ordinance 2018-007 by adding a new Section 2, "Implementation Date will be October 1, 2019" and moving the next section down. Motion to Amend Passed Yes: Towsley,McClure,Keil, Seese No: Casagranda,Horn Motion to Amend (Casagranda/Towsley) Amend Ordinance 2018-007 under 9.35.010 Definitions by striking, "...and that is less than two and one-quarter mils thick..." 28 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page under the definition for plastic carry-out bags. Council suspended the rules to ask Andy Bacon some questions In response to Casagranda, Andy Bacon said there was a lot to plastic bags that most laypeople did not know. He was concerned that enforcement would be difficult because of the difficulty with measuring thickness. Council went back on the rules. Motion to Amend Passed Yes: Towsley,Casagranda,Seese,McClure No: Keil,Horn Motion to Amend (Casagranda/Seese) Amend Ordinance 2018-007 by creating a new Section 9.35.030 entitled "Violations and penalties". Motion to Amend withdrawn with no objection from council. Main Motion Passed Unanimous Council recessed at 8:54 p.m. Council resumed at 9:01 p.m. Squires returned to the dais. Ordinance 2018-008,Amending Title 3,Chapter 15,Salary Administration to Require Council Approval of the City Manager's Review and Recommendations for External Equity. This ordinance was introduced on September 10, 2018 and is coming tonight for a public hearing and enactment. Motion (Kell/Casagranda) Enact Ordinance 2018-008 Bridges said each council set their own limits as they were comfortable. Once the union was put in place, only non-union employees would be eligible. In response to Keil,Bridges said council would have to be able to review the employee's current salary, and compare that to supporting documentation provided in order to make a determination on whether to grant external equity. Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. Patrick Messmer supported this ordinance, whether the decision rested with the city manager or council. He was most concerned with transparency, and thought that as public servants all employee salaries should be made public. 29 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page No one else appeared to address the Council and the public hearing was closed. Casagranda said external equity was something used to attract or retain an employee,based on a comparison with other external employers or communities. She did not think that individual employee records would have to be reviewed or disclosed in order for council to make decisions. In response to Keil, Casagranda said she was not suggesting that anyone currently receiving external equity should lose it. McClure was concerned that this would be perceived with interfering with personnel matters. Bridges suggested that council would have to prepare for was to vote on an individual's pay. In response to Towsley, Casagranda said any employee could potentially receive an external equity consideration. Casagranda added that according to state statutes, public employee salaries were public record. Squires thought this ordinance would limit the city manager's ability to attract new talent. In response to Towsley, Bridges said an alternative to passing this ordinance would be for council to consider a revised pay scale for employees with the biennial budget. Motion to Amend (Casagranda/Towsley) Amend Ordinance 2018-008 in Section 1 (c) to read,"The City Manager may adjust the pay plan to account for external equity and report to City Council within one month of approval..." Motion to Amend Passed Yes: Seese, Towsley,Horn, Casagranda, McClure,Keil No: Squires Main Motion Passed Yes:McClure,Towsley,Casagranda,Seese No: Keil, Horn, Squires UNFINISHED BUSINESS —None NEW BUSINESS Resolutions Resolution 2018-080, Recommending That The Alice Pickett Memorial Animal Shelter Be Relocated To Lot 6A-2 Fort Raymond Subdivision Replat Number Three,Located At 605 Sea Lion Avenue,Within The Institutional (INS) Zoning District. Motion (Keil/Casagranda) Approve Resolution 2018-080 City Planner Jackie Wilde said this resolution proposed to relocate the animal shelter to the lot just west of the Electric Warehouse on Sea Lion Avenue,with the driveway and parking access coming out onto Sea Lion Avenue. 30 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page Motion Passed Unanimous Other New Business Approval of the August 27, 2018 Regular Meeting Minutes. Motion (McClure/Kell) Approve the August 27, 2018 Regular Meeting Minutes. Motion to Amend(McClure/Keil) Amend the August 27,2018 Regular Meeting Minutes under the City Manager Report for City Planner Jackie Wilde's comments so it reads,"...Last year,the city collected a little over$,000$500,000 in sales and bed tax and had a little over $17,000 $1,700 in penalties..." Motion to Amend Passed Unanimous Main Motion Passed Unanimous Consent Review citizen applications and make selections on participants for the 50t" Anniversary celebration in Obihiro, Japan in October, 2018. Council Member Horn declared a potential conflict of interest because he was an applicant. Mayor Squires ruled that a conflict existed, and Horn left the dais. Motion (Keil/McClure) Send Mayor Squires to Japan along with six citizens as the delegation. Motion Failed Yes: Keil No:McClure,Towsley,Casagranda,Seese, Squires Motion (Casagranda/Seese) Send Mayor Squires along with nine citizens as the delegation. Motion Passed Yes: Towsley, McClure, Keil, Seese, Casagranda No: Squires City Clerk Brenda Ballou passed out Ballot#1 containing the names of the 13 applicants,and instructed council to eliminate four applicant names,thereby voting for the remaining nine to travel to Obihiro. 31 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page The results of the first vote were: 5 Angela Schwertfeger Approved 5 Cathy Byars Approved 3 Dana Paperman 6 Erik Slater Approved 6 Hank West Approved 6 Jeremy Horn Approved 4 Kelley Wiley Lane Approved 6 Lynn Hohl Approved 4 Michael Meeks Approved 3 Rachel Gordon 2 Tom Swann 1 Lori Swann 3 Vanessa Verhey Ballou passed out Ballot #2 containing the names of the five remaining applicants, and instructed council to eliminate four applicant names,thereby voting for the remaining one to travel to Obihiro. The results of the second vote were: 2 Dana Paperman 1 Rachel Gordon 3 Vanessa Verhey Approved By unanimous consent, council selected Dana Paperman to be the first alternate should anyone be unable to travel. Council directed the city clerk to obtain Seward city flags for presentation to Kushiro and Obihiro. Council Member Horn returned to the dais. Discuss Code of Conduct and Code of Ethics. (Keil) Keil said she met with Lynda Paquette today and they discussed creating a grassroots effort to draft a code of conduct and code of ethics with a citizen group,perhaps beginning in January,2019. INFORMATIONAL ITEMS AND REPORTS Clerk's Report on Public Records Request for August, 2018. On-Going City Projects and Goals. Meet The Candidates Forum on September 26, 2018. 32 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page Financial Reports for Providence Seward Medical and Care Center and the City of Seward through July, 2018. COUNCIL COMMENTS Seese thanked Darryl Schaefermeyer for his years of service. She said the Kenai Peninsula Borough gave a discount to businesses when their sales tax remittance was timely;perhaps the city could consider that approach for bed tax. Horn thanked Schaefermeyer for his service, and thanked council and the city for selecting him for the trip to Obihiro. Hank West would be interested in providing a Japanese language workshop for all attendees. Casagranda echoed congratulations for the McHones and Darryl Schaefermeyer;their service was commendable. She thought the report of sales and bed tax revenues should be more than $1 million. Seward High School football played in Homer this weekend and they were inspirational. Keil thanked the McHones for their service as well as Darryl Schaefermeyer. Keil was looking forward to working with Lynda Paquette. She wished Squires a happy trip to Washington DC and Japan. McClure thanked the McHones and Darryl Schaefermeyer. She noticed some high school students in the audience tonight,and encouraged everyone to attend council meetings.McClure gave a shout out to the Chamber of Commerce for hosting Meet The Candidates on Wednesday, September 26,2018 at 5:00 p.m. She reminded everyone that tomorrow night was a work session at 6:00 p.m. to discuss Transco. Towsley congratulated Schaefermeyer and the McHones, and wished them all a happy retirement. She reminded the public to let council know how they felt about the cruise ship dock proposal.Towsley was thrilled that an investigation would move forward.Election Day was October 2, 2018. Squires congratulated Darryl Schaefermeyer on his retirement. He was sorry to see the McHones go. Squires announced he would be out of state starting Sept 27, 2018, and that Vice Mayor Keil would be providing the welcome at the Harbormasters Conference. CITIZEN COMMENTS Willard Dunham thought the cruise ship dock concept was interesting.Following the 1964 earthquake, it took a lot of work to re-establish the harbor infrastructure. He cautioned council to remember there were almost 6,000 people in this town that needed support throughout the year,not just for 120 days each year. He was concerned that the cruise ship industry could take over the town and eliminate he diversity of Seward's businesses to its detriment. Council recessed until September 25,2018 at 5:00 p.m. Council resumed on September 25,2018 at 5:00 p.m. 33 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page ROLL CALL There were present: David Squires presiding and Marianna Keil Ristine Casagranda Sue McClure Suzanne Towsley Jeremy Horn Sharyl Seese comprising a quorum of the Council; and Jeff Bridges, Interim City Manager Brenda Ballou, City Clerk Absent—None CITIZEN COMMENTS Brooke Andrews appreciated the live streaming through Seward Civic Engagement. She was concerned about cruise ship dock proposal, especially as it impacted commercial fishing. City Attorney Will Earnhart joined the meeting telephonically. Lynda Paquette announced that there had been a resolution and ordinance training done by Seward Civic Engagement on September 20, 2018, and the replay could be found on Facebook. October 4, 2018 would be the next meeting. Future topics would be citizen initiatives and budgets. This winter, the group would be looking to develop code of conduct/code of ethics. Regarding the cruise ship concept,Paquette thought we should look at how ships were evolving and perhaps try to address that. Rhonda Bohart was very opposed to the cruise ship dock. She didn't think it made sense to expand by adding new docks. Motion to Reconsider (Horn/Keil) Reconsider Ordinance 2018-007 Squires removed himself from the dais. Motion to Reconsider Passed Unanimous Motion to Amend (Horn/McClure) Amend Ordinance 2018-007 under 9.35.010 Definitions by reinstating the original language, "...and that is less than two and one-quarter mils thick..." under the definition for plastic carry-out bags. Motion to Amend Passed Unanimous 34 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page Main Motion Unanimous COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Seese agreed that the city could focus on doing more with the current cruise ship dock. Horn thought the proposed cruise ship timeframe was unrealistic. Casagranda thanked Lynda Paquette for providing a conduit for education to the public,and for being so engaged in the city activities. Keil concurred that the current railroad cruise facility should be the focus. McClure agreed with that sentiment; she had an outpouring of citizen comments. Towsley agreed with the concerns raised about the cruise ship dock. Squires said the presentation last night was intended to provide a fair chance for the public to hear the concept; he encouraged the public to continue to share their thoughts about the concept. EXECUTIVE SESSION Motion (Casagranda/Towsley) Go into Executive Session to discuss the perceived threatened litigation made by the finance director during the August 22,2018 Special Meeting. City Attorney Will Earnhart said it was his opinion that there was no legitimate threat of litigation and, therefore,he did not recommend council going into executive session. In response to Towsley, Earnhart said if council had concerns about the finance director's behavior, they could provide direction to the city manager to investigate the propriety of the statements. Towsley stated that the council,as a body,had not voted to pass communications through the mayor;there were other protocols set up in council rules of procedure. Casagranda added that it was also the protocol that council members had the ability to contact the city manager directly without going through the mayor. Motion withdrawn with no objection from council. Motion (Casagranda/Seese) Direct the city manager to investigate the propriety of the statements made by the finance director on August 22, 2018 to determine if in violation of the city's defamation and harassment policy,and,to investigate the allegations of fraud against 35 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page Towsley, and provide a report to the public. Motion Passed Yes: Keil,McClure,Horn, Squires No: Seese, Towsley, Casagranda Motion to Amend (Towsley/Casagranda) Amend the direction to the city manager by adding,"...and to determine if there was a violation of confidentiality or personnel code, ..." so that it reads: Direct the city manager to investigate the propriety of all the statements made by the finance director on August 22, 2018 to determine if in violation of the city's defamation and harassment policy and to determine if there was a violation of confidentiality or personnel code, and to investigate the allegations of fraud against Towsley, and provide a report to the public. Keil objected to the motion on the grounds that this was a take back motion,and requested a recess to research parliamentary procedure. Council recessed at 5:47 p.m. Council resumed at 5:58 p.m. Ballou stated this was not a take back motion, and recommended council continue with the vote. * Bridges stated that any party subj ect to the investigation would not be privy to the progress of the investigation to which council raised no objection. Motion to Amend Passed Yes: Horn, Casagranda, Towsley, Seese No: Keil,McClure, Squires ADJOURNMENT The meeting was adjourned at 5:59 p.m. Brenda J. Ballou, MMC David Squires City Clerk Mayor (City Seal) 36 City of Seward,Alaska City Council Minutes September 24, 2018 Volume 39,Page *Clerk's Note: These minutes were brought forward for council approval on October 8, 2018, and were not approved. Regarding the portion of the minutes relating to the Executive Session, Keil restated her original objection to allowing the second motion to be made on the grounds that it was a take back motion. The approval of the minutes was postponed to the October 22, 2018 meeting. Upon further research, the City Clerk concurs with Keil that the second motion was a take back and should have been done as a reconsideration, which is a motion that could only have been made by someone voting on the prevailing side of the first motion. Since Towsley did not vote on the prevailing side of the first motion, the motion to reconsider could only have been made by Ked, McClure, Horn, or Squires. The direction given was put into action immediately by the city manager following the September 24, 2018 meeting, and cannot be taken back so the action must stand, even though the voting action took place via a parliamentarian error. 37 Sponsored by: City Clerk CITY OF SEWARD,ALASKA RESOLUTION 2018-084 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AMENDMENT #1 TO THE EMPLOYMENT AGREEMENT WITH THE CITY CLERK WHEREAS, on October 23, 2017,the City Council approved Resolution 2017-070 to hire Brenda Ballou as the City Clerk; and WHEREAS, at that time the City Council determined to conduct an Initial Evaluation in July, 2018 to re-evaluate the City Clerk's goals and provide supportive direction; and WHEREAS, the evaluation period was October 10, 2017 through July 6, 2018; and WHEREAS,upon favorable review,the City Council may consider a salary increase or other amendment(s)to the contract; and WHEREAS, the City Council met with City Clerk Brenda Ballou on July 23, 2018 to evaluate the City Clerk's performance, resulting in a favorable outcome; and WHEREAS,on October 8,2018,the City Council met to discuss the City Clerk's contract, and assigned a negotiating team of two council members to meet with the City Clerk; and WHEREAS, the negotiating team recommends amending the City Clerk's employment agreement. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Seward City Council hereby approves Amendment No. 1 to the City Clerk's employment agreement dated October 10, 2017 between the City of Seward and Brenda Ballou, resulting in an increase in the position's annual base salary to $75,000. Section 2. The Clerk salary and benefit account numbers 01000-1113-6XXX has adequate funding to accommodate the increase to salary and benefits, and therefore, additional funding appropriation is not required. Section 3. The effective date of the salary increase shall be retroactive to July 7, 2018. Section 4. This resolution shall take effect immediately upon its adoption. 38 Council Agenda Statement Meeting Date: October 22, 2018 To: City Council From: Brenda Ballou, City Clerk Agenda Item: Employment Agreement Amendment#1 with the City Clerk BACKGROUND & JUSTIFICATION: Brenda Ballou has been employed by the Seward City Council as the City Clerk since October 10, 2017. The City Clerk does not participate in standard employee step increases or cost of living adjustments (COLA) as outlined in the Seward City Code, and any increase in pay must be by an amendment to the employment agreement via Council Resolution. The attached resolution reflects an increase to the City Clerk's salary,to$75,000 annually,reflecting the outcome of a satisfactory Initial Evaluation by the Seward City Council, which took place in July, 2018. During the 2018/2019 budget process,the Salaries budget for the City Clerk's Office was predicated on previous staffing models, and since there has been a turnover in staff, the current budget is adequate to absorb the proposed increase and additional appropriations are not required. FISCAL NOTE: This amendment reflects an annual salary increase of$10,000(16%)with an approximate increase in benefit costs of$3,500, for a total cost increase of$13,500. An appropriation is not necessary due to turnover in department positions resulting in personnel savings. Approved by Finance Department: Yes ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approve Resolution 2018-084, making amendment 91 of the City Clerk employment agreement with Brenda Ballou, retroactively effective to July 7, 2018. 39 Employment Agreement Amendment#1 City Clerk This agreement approved by the City Council of the City of Seward, effective October 10, 2017, and amended on October 22, 2018, is between the City of Seward, Alaska, whose address is PO Box 167, Seward, Alaska 99664 (`City") and Brenda J. Ballou, whose address is PO Box 3551, Seward, AK 99664(`Ballou"or"City Clerk"). The City agrees to employ Ballou as City Clerk. This agreement shall continue indefinitely under the following terms: 1. The City acknowledges that City Clerk is committed to the ideals of the International Institute of Municipal Clerks (`IIMC"), and both parties mutually desire that City Clerk be subject to and comply with the IIMC Code of Ethics.The City agrees that no member of City Council or any employee of the City may give any order,direction,or make any request that would require the City Clerk to violate the IIMC Code of Ethics.(Attached) 2. City Clerk agrees to devote full-time on behalf of the City,and may continue to engage in her private business so long as it does not interfere with the City Clerk's duties. 3. Professional growth and continuing education, and obtaining and maintaining clerk certifications through training and education, is allowed and encouraged for City Clerk and the staff of the clerk's office. 4. City Clerk is encouraged to participate in community and civic affairs. 5. Travel by the City Clerk shall be in accordance with City Code 3.60.025. Reimbursement for expenditures on behalf of the City shall not be paid unless reimbursement is sought in accordance with standard City procedures, including receipts, vouchers, and supporting material. 6. City Clerk shall accrue annual leave and holidays in accordance with Chapter 3.45 and 3.50 of the Seward City Code. City Clerk shall be covered by the standard City health insurance and retirement plans. 7. The provisions of Title 3 of the Seward City Code shall not apply to this agreement with the following exceptions: a. 3.15.085.Longevity Bonus. b. 3.15.090.Retirement. c. 3.15.095.Insurance and medical benefits. d. 3.35. Employee Development. City Clerk will have collateral responsibility for employee development within the City Clerk Department. e. 3.45. Annual Leave. The City Council will administer Annual Leave policy for the City Clerk. This includes FMLA(3.45.095)and bereavement leave(3.45.040 f). f. 3.50.Holidays. g. 3.60.Special Provisions. h. 3.70.Standards Relating to Drugs and Alcohol. 40 Employment Agreement Amendment#1 City Clerk i. 3.75.Standards Relating to Employee Conduct. j. 3.80.Worker's Compensation. 8. Because of the peculiar nature of the City Clerk position,it is agreed that the City's business can only succeed if the City Clerk and the City Council enjoy a working relationship based on mutual respect, trust and positive attitudes. It may, therefore, be impossible to quantify "poor performance" or "just cause" for termination given these complexities which often involve personality factors as opposed to legal or contractual factors.It is therefore the intent of both the City and City Clerk, to provide for termination by either the City or City Clerk without resort to any determination of cause or any necessary explanation by the City. Accordingly,this agreement may be terminated as follows: (a) By City Clerk,for any reason or no stated reason,upon giving sixty(60)days written notice to the City. Upon receipt of notice, the City may immediately terminate the relationship, or may require City Clerk to continue for a period not to exceed sixty (60) days at her regular rate of pay from the date of receipt of the notice. The City shall make the election promptly and within fourteen (14) days of the receipt of notice, and the City's failure to make an election shall be deemed as election to terminate the relationship sixty(60)days from the date of receipt of the notice.If the relationship is so terminated, the City shall not be responsible for any severance or termination pay, and City Clerk shall be entitled to any annual leave balance to the date of termination. (b) By the City Council for any reason or no stated reason upon giving written notice to City Clerk. The City Council may, at its option, terminate the relationship immediately and provide City Clerk with sitysix -(6OL60)days pay in lieu of notice, or,the City Council may require City Clerk to continue service at her regular rate of pay for a period of sixty (60) days. City Clerk shall be entitled to her annual leave balance at the date of termination. (c) If City Clerk retires from full-time public service with the City, City Clerk will provide six (6) months' notice, and the actual retirement date will be mutually established. 9. The City shall defend,indemnify,and hold City Clerk harmless for claims against City Clerk for*eg4igei -acts or omissions Berl-resulting from her employment by the City and within the scope of the duties as City Clerk pursuant to Chapter 2.35 of the Seward City Code. 10.The City Council shall provide the City Clerk with a probationary period of nine(9)months from the date of hire, and shall conduct an Initial Evaluation at that time to re-evaluate the City Clerk's goals and provide supportive direction Completed July, 2018. Following this Initial Evaluation, the City Clerk's evaluation will fall in line with the regular schedule as outlined in the City Council Rules of Procedure,Rule 16. 41 Employment Agreement Amendment#1 City Clerk 34—City Clerk shall be paid at the rate of$�75 000 per year. The City Council agrees to review City Clerk's performance and contract annually and may consider a salary increase or other amendment(s)to this contract upon favorable review. — Formatted:Font:(Default)Times New Roman,12 pt 42-11. This agreement is the entire agreement and wherever approval of the City is required,it is understood that such approval will be by the City Council of the City of Seward. This agreement supersedes any previous agreement and may be modified only in writing signed by each of the parties. This agreement will be interpreted and enforced in Alaska in accordance with the laws of the State of Alaska and is subject to all applicable Charter and ordinance provisions of the City of Seward. DATED this day of 2414 2018. CITY OF SEWARD,ALASKA David Squires,Mayor Brenda J.Ballou,MMC Jeff Bridges,Interim City Manager (City Seal) 42 Employment Agreement Amendment#1 City Clerk INTERNATIONAL INSTITUTE OF MUNICIPAL CLERKS Proessim-wrPe'rsorn��ac ff E Believing in freedom throughout the world,allowiT increased cooperation between publ[c offtcia(s and other nationalCy and lnternarianaCly,I dn herz6y su6scri6e to the fol(awn'ng yrincip(es andethics w6ichl affirm,willgovern my persanaf conduct as a member of ZIMc. T'a uyiwW constituttona.l government and the Caws of my comintcnity; '.F'o record that which is true andpreserve that wkvch is entruted to me �-c so conduct myyubfic andprivate fife as to be an example to my as iftr were my orm;and fellow citizens; 'To strive constantCy to imyprowe the administration o f the affairs of my To im art tom o essime tFwse sraneCards o quail andinte ri offce consistent with ayy(xabk Caws and-thr, h so' (management that 6e conduct o�he affairs of my office shaft be above reproa h and yrachces toymduce continuedprogress and so�u(j4 my responsi6iCiries to merit pu6Cic confidence in our community; to my community andothers_ rKae Ouy,t.of o.tee"W,f iron(so TO ytv jve ro rrJ m rMc rnrrrz�r and 6e ever mindfuCof my neutrality andirnparriaUry,rendering equal purposes y.WFs� s¢rvdce to.(land to extend the same treatment[wish to receive myself, Attest: rY�c re,+� .,rag.arre.itn�n�e,,.rr�.,.,ry a(r6.mre.�an�alr. ae.fawnr pULef,6: I Mc B'xecutivc'Director ITMc`President 43 City of Seward,Alaska City Council Special Meeting Minutes October 1, 2018 Volume 39,Page CALL TO ORDER The October 1, 2018 regular meeting of the Seward City Council was called to order at 5:00 p.m. by Vice Mayor Marianna Keil. OPENING CEREMONY Jeff Bridges led the Pledge of Allegiance to the flag. ROLL CALL There were present: Marianna Keil presiding and Sue McClure Ristine Casagranda Jeremy Horn Suzanne Towsley Sharyl Seese comprising a quorum of the Council; and Jeff Bridges, Interim City Manager Brenda Ballou, City Clerk Absent— Squires CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Casagranda/McClure) Approval of Agenda and Consent Agenda Motion Passed Unanimous There were no consent agenda items. NEW BUSINESS Resolution 2018-082, Authorizing the Electric Utility Manager To Sign The Memorandum of Understanding For The Creation Of The Railbelt Reliability Council And Submit To The Regulatory Commission Of Alaska. Motion (Casagranda/McClure) Approve Resolution 2018-082 Bridges expressed concerns,particularly regarding the funding stream that would go towards supporting the organization. Council suspended the rules to speak with Willard Dunham. 44 City of Seward,Alaska City Council Special Meeting Minutes October 1, 2018 Volume 39,Page Willard Dunham,the city's representative to the Alaska Railbelt Cooperation Transmission Electric Company(ARCTEC), said there was currently no law on the state's books to authorize this oversight, and was the first effort to bring forward organized, voluntary regulation. Dunham recommended that council approve this resolution. Council went back on the rules. Electric Utility Manager John Foutz said Seward was the only city that had not yet signed a memorandum of understanding. Foutz clarified that Transco was one organization,and the Railbelt Reliability Council (RRC) was a different one; both would act as a checks and balances with the other. The two separate organizations would move forward simultaneously. In response to Casagranda, Foutz said there were no boards in existence yet for either organization. ARCTEC hired GDS Associates, Inc. (GDS) to create the RRC as a self-initiated solution to propose to the Regulatory Commission of Alaska(RCA). Transco would be governed separately by a board of utility members and the American Transmission Company(ATC). Foutz said the RCA was the regulatory branch of the State of Alaska which was commissioned to protect cyber-security and reliability for the railbelt utilities. In response to Casagranda,Foutz confirmed that ARCTEC was the nonprofit that hired GDS. GDS reported to the RCA that their recommendation would be to create two entities: Transco and the RRC. The RRC would report to the RCA;the RCA would have to approve any fees that the RRC proposed. Keil said ARCTEC was formed in response to a threat from the state legislature. Adding to that, Foutz said there was $56 million in the state railbelt funds, and the state said they would not release any funds unless the utilities demonstrated they could work together,therefore ARCTEC was formed. In response to Casagranda, Foutz said that the most advantageous reason to be a part of this related to cost and reliability. Foutz said the bottom line was that there would be an organization formed, and the city could be a part of it or be at the mercy of it. Bridges said he agreed with Foutz and Dunham that this was a concept that had been percolating for many years, and it would be more beneficial for the city to be involved rather than sitting on the sidelines.In response to Towsley,Bridges said approving this MOU did not mean that the City of Seward was handing over any control; we were only committing to working with the other utilities, not giving up any sovereignty. In response to Towsley,Foutz confirmed that there were no provisions within the MOU that would allow the City of Seward to withdraw from the RRC. Motion Passed Unanimous 45 City of Seward,Alaska City Council Special Meeting Minutes October 1, 2018 Volume 39,Page COUNCIL COMMENTS Casagranda was hoping that citizens and council alike would stay engaged on this topic;she was concerned that this important topic came forward as a special meeting with laydowns. She wished for the most amount of education as possible. She felt that council members deserved to have more and better training on electric utility rates . McClure reminded everyone that tomorrow was election day,and that the Seward Music& Arts Festival would start Friday. Towsley echoed some of the same concerns as Casagranda; she would appreciate more training. Keil thought that administration should provide regular reports to council and the public on this topic. CITIZEN COMMENTS John Foutz reminded the public that there had been presentation provided at the energy fair, and would continue to do provide information to the public and council. Willard Dunham thanked council for approving this resolution. In the past,there had been many attempts made by the state legislature to take over this regulation. Lynda Paquette reminded everyone that there would be a Seward Civic Engagement training on initiatives and the Public Employees Relations Act(PERA)on Thursday this week,and on October 18, 2018 the topic would be business licensing. Becky Dunn thought the city needed to enforce businesses operating without a business license or paying taxes. Sales taxes helped pay for roads and infrastructure, schools and hospitals. Dunn encouraged business owners to sign up as members of the Chamber of Commerce as well. There were a lot of steps that a business had to go through to get licensed; she thought it was unfair that some businesses operated without a license. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Towsley thanked Paquette for the Seward Civic Engagement education meetings. October 18, 2018 was a holiday for the city, and the library would be closed, so an alternate location would have to be found. McClure reminded everyone that there would be a test of the emergency response system on Wednesday. Bridges said there was to be a federal emergency alert test that had been rescheduled to this week. 46 City of Seward,Alaska City Council Special Meeting Minutes October 1, 2018 Volume 39,Page Keil thanked Dunn for speaking up; she thought the business license process should be reviewed, particularly relating to zoning. ADJOURNMENT The meeting was adjourned at 6:24 p.m. Brenda J. Ballou, MMC Marianna Keil City Clerk Vice Mayor (City Seal) 47 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page CALL TO ORDER The October 8, 2018 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Vice Mayor Marianna Keil. OPENING CEREMONY Lt. Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Marianna Keil presiding and Ristine Casagranda Sue McClure Suzanne Towsley Jeremy Horn Sharyl Seese comprising a quorum of the Council; and Jeff Bridges, Interim City Manager Brenda Ballou, City Clerk Will Earnhart, City Attorney Absent— Squires CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Christy Terry was speaking as the chair of the Port and Commerce Advisory Board (PACAB). Regarding Resolution 2018-081, PACAB strongly encouraged council to approve this resolution; this was first considered by PACAB ten years ago. She was aware that there may be concern about dividing assets between a hydroelectric project and a geothermal heat project, but Terry said this project would help make the electric enterprise fund healthier. This feasibility study would help determine whether or not to pursue this project. Brad Snowden had been a resident of Seward for 54 years.He had been a successful hotelier in the past. Regarding the cruise ship dock concept, Snowden said people had to have criteria to measure success, identify your goal,beware of unintended consequences, and think about having a sunset clause. Lynda Paquette said in April,2017 mayor Bardarson signed the We Love Us declaration.In the time that has past,Paquette felt like the community had lost ground. The community had created a GoFundMe account to support a single mother of three who was also a council member;Paquette requested that council remove this discussion item from tonight's agenda. 48 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Casagranda/McClure) Approval of Agenda and Consent Agenda McClure removed the approval of the October 1, 2018 Special Meeting Minutes from the agenda. Towsley requested to remove the GoFundMe discussion from the agenda, but there was objection from council so it remained on the agenda. Keil removed the approval of the September 24, 2018 from the consent agenda. Keil added Resolution 2018-081 to the consent agenda. McClure added an item to Other New Business to discuss November meeting dates. Keil added an item to Other New Business to discuss Unity in the Community. Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinance 2018-009,Amending The Zoning And Land Use Plan Designation Of City Owned Lot 7A,Fort Raymond Subdivision Replat Number 1, Located At 2101 Dimond Boulevard, From Institutional(INS)To Auto Commercial(AC). This ordinance was introduced tonight, and will come for public hearing and enactment on October 22, 2018. Resolution 2018-081,Authorizing The City Manager To Enter Into A Sole Source Contract For The Amount Of$88,000 With Your Clean Energy To Study The Costs And Feasibility Of A Hydroelectric Project In Lowell Canyon And Produce A Report,And Appropriating Funds. Certification of the October 2,2018 City of Seward election. Approval of the August 20,2018 Special Meeting Minutes. SPECIAL ORDERS,PRESENTATIONS AND REPORTS Proclamations & Awards —None Borough Assembly Report. Kenn Carpenter stated the assembly would be meeting tomorrow. The flood board met with city administration and borough representatives to tour the critical flood areas around Seward. There would be an Eastern Peninsula Highway Emergency Service Area(EPHESA) board meeting on October 11, 2018 in the assembly chambers. 49 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page McClure congratulated Carpenter for his re-election as the KPB assembly representative.In response to McClure,Carpenter confirmed that the flood board was open to any resident to apply. City Manager Report. Jeff Bridges reported the following purchase orders between $10,000 and $50,000 have been approved by the City Manager since the last council meeting: $23,000 to AK Sure Seal for sealing and paving parking lots; $2,313,154.80 for the replacement of the South Harbor boat launch; and, $6,336 to Overhead Doors for the Seward Marine Industrial Center(SMIC) shop door. There was a Request for Proposals released by the Parks & Recreation Department for referees, and the scoring criteria would be: 25% Price Fee Per Game 25% Experience in Same/Similar Work 25% Recruit and Train Officials 25% Ability to Manage Work Proposals would be due by Friday, October 12, 2018 at 12:00 p.m. Governor Walker would be in Seward for the Harbormasters Conference on Thursday, and would be hosting a Town Hall meeting, as well as signing SB 92. State Senator Micciche would be in Seward on Wednesday. Bridges thanked the flood board for providing the tour. City Attorney Report. Will Earnhart said either himself or Katie Davies would be attending the signing of SB 92; Holly Wells helped draft the bill. Earnhart said he agreed with 98%of Dan Rapasky's presentation about the Public Employees Relations Act(PERA) at last week's Seward Civic Engagement session hosted by Lynda Paquette. He Disagreed with one thing,and that was that Earnhart believed personalities did have an impact; when trust and communication broke down, fees and expenses rose. Other Reports,Announcements and Presentations Pebble Mine Stand for Salmon PUBLIC HEARINGS —None UNFINISHED BUSINESS —None NEW BUSINESS Other New Business Approval of September 24, 2018 Regular Meeting Minutes. 50 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page Keil said she removed the approval of the September 24, 2018 meeting minutes from the consent agenda because she did not feel the minutes accurately reflected the events, and because during the meeting she had objected to the second motion made by Towsley related to giving the city manager direction to perform an investigation;Keil said it should have been a take back motion.Keil requested that the issue be reviewed and researched,and the minutes brought back at the October 22, 2018 meeting for consideration. Review the city's Federal Priorities List,and confirm the critical topics for the mayor's visit to Washington,D.C. (Squires) Keil recommended noting that the CT Scanner funds had already been obtained,and so that was not a priority anymore. Casagranda requested to reorder Section B so that the tunnel came first and the harbor came second. There was no objection from council. Discuss city attorney memo regarding potential conflicts of interest arising from charitable contributions to council members. (Keil) Keil said she understood that people had really good intentions, but the point of bringing forward this memo was so that everyone understood the implications of a council member receiving donations. Keil believed a council member receiving donations was a conflict of interest. Earnhart said public officials should not take any cash gifts,particularly when the recipient would be free to spend the money in any way they wished. City Attorney Holly Wells said a council member could accept money, so long as they didn't vote on any item of business related to the subject. Wells stated clearly that no council member had violated any law, but warned that the potential existed. Towsley stated she had returned the funds, and would not have to recuse herself from any future voting. In response to Towsley, Keil said the mayor had asked for the memo to be drafted; Earnhart said after he was made aware of the GoFundMe account he contacted the mayor and the mayor agreed that a memo would be in order. Towsley questioned whether council,as a body,had made the determination that one singular member of council could seek legal advice; it was her understanding that direction needed to come from the majority of the body. Casagranda said gifts were reported on the annual financial disclosure forms. She wished that the word "substantial" was better defined in code. Casagranda reiterated that, according to City Council Rules of Procedure,there was already a provision and a process in place for contacting the city attorney, and council was determined to follow that rule. Discuss November city council meeting dates. (McClure) 51 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page McClure stated there were regular meetings scheduled on Tuesday,November 13,2018 and November 26, 2018. The Alaska Municipal League Conference would be held the week of November 12, 2018. She wished council would consider amending the regular meeting schedule. Motion (Sees e/Casagranda) Cancel the November 13 &26,2018 council meetings, and reschedule them to November 5 & 19,2018. Bridges stated there would be staff missing on November 19, 2018, and it would be difficult to attend on that date. McClure and Towsley would not be available on November 5, 2018. The motion was withdrawn with no objection from council. Motion (McClure/Towsley) Cancel the November 13, 2018 council meeting and keep the November 26, 2018 meeting. Motion Passed Unanimous Motion (McClure/ Cancel the November 9,2018 work session. Bridges requested that council keep the work session scheduled for November 9, 2018 and allow administration to use that opportunity to discuss other topics with council. The motion was withdrawn with no objection from council. Discuss unity in the community. (Keil) Keil said several weeks ago she reached out to the sponsors of the recall petition against Towsley and asked them to consider withdrawing the petition for recall.Keil said although they had gathered signatures, they informed her they would not be submitting the petition for recall. Casagranda thanked Keil for all her service. Keil said we all needed to live up to the standards of what the community expected. INFORMATIONAL ITEMS AND REPORTS Letter Accepting Invitation to Visit Obihiro, Japan for 50th Anniversary of Sister City. Clerk's Report on Public Records Request for September, 2018. On-Going City Projects and Goals. Council recessed at 8:14 p.m. Council resumed at 8:20 p.m. 52 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page COUNCIL COMMENTS Casagranda congratulated Seese for being re-elected, and new council members John Osenga and Kelley Lane. Casagranda recalled eight years ago when Vanta Shafer encouraged her to run for council; now Casagranda was looking forward to returning to private life. Casagranda said she learned more sitting at the dais than she ever could have hoped. McClure congratulated all the newly-elected council members, and thanked everyone who ran. Sometimes it was not easy or even fun,but it was important to the community. To Casagranda, McClure recalled when Casagranda was newly-elected and she offered to be her mentor.To Keil,she thanked her for her 23 years of service. McClure would like to have a work session for all of council to review the policies and procedures as a refresh for expectations. Towsley thanked Christy Terry for speaking on behalf of PACAB, Brad Snowden for speaking about the cruise ship dock,and Lynda Paquette for reminding us of love.When Casagranda was first elected, Towsley was a city employee; Towsley thanked Casagranda and Keil for their integrity and passion. She thanked everyone who ran, and congratulated the new council members. Casagranda commended the volunteers for putting on the Seward Music & Arts Festival (SMAF). Seese thanked Casagranda and Keil for their service. She thanked Anthony Baclaan for running, and hoped he would run again next year. Keil wished to"sneak out" as she came to the end of her service without public recognition. She was looking forward to welcoming the harbormasters at the conference tomorrow morning.Keil welcomed the new council members. CITIZEN COMMENTS Patrick Messmer thanked the outgoing council members;he respected both Casagranda and Keil. He had listened to a program recently that said the country was going through a more contentious time now than since the Reconstruction Era,and he hoped that our community could get back to having more unity. Lynda Paquette shared some thoughts on what makes a good community. A good community: was at peace with itself, was confident and assured of its position within its state and country; was self-governing; had a healthy mix of people with diversity; had the best interest of everyone at heart;took pride in its living environment; had a high quality of life;was a place where people wanted to live; was resilient without judgement. Brad Snowden thanked Keil for all her years of service, as well as Casagranda. He had leaned on both of them over time and thanked them both sincerely. 53 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page Becky Dunn was concerned about businesses not being licensed and not paying sales tax. She wondered if some of the unlicensed businesses in Seward were not getting licensed because they owed child support. She suggested there were charter boat operators approaching campgrounds offering special rates and friendly deals. Darryl Schaefermeyer thanked council for their support of the hydroelectric feasibility study. He thanked Keil and Casagranda for their years of service.He encouraged everyone to serve, and mentioned there were two vacancies on PACAB. Schaefermeyer congratulated the newly-elected officials. Christy Terry thanked council for approving tonight's resolution for the hydroelectric feasibility study. She invited the community to an exhibitor open house for the Harbormasters Conference at the KM Rae Building tomorrow evening.Terry thanked Keil and Casagranda for their service, and thanked the newly-elected officials and those who ran. Valarie Kingsland invited everyone to celebrate Alaska book week. There would be five authors at the Seward Community Library Museum tomorrow evening in the community room at 5:30 p.m. Kelley Lane was grateful for being elected to council. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Bridges thanked Keil and Casagranda for the opportunity given to him,and for their service. He congratulated the newly-elected officials and looked forward to working with them. EXECUTIVE SESSION Go into executive session to evaluate the city attorney. Earnhart requested that his evaluation be held in public. Council agreed to discuss only the summary of evaluations, so that document would become public record. Earnhart said his firm was very dedicated to the community of Seward.He understood that he needed to work on being more direct with his comments. Regarding the July,2018 special meeting with the last-minute executive session,he agreed it was not appropriate,but still thought it had been important to have.Regarding personnel training for supervisors,that had not been accomplished,and Earnhart said it would have been difficult to conduct under the circumstances. Casagranda thanked Earnhart for his work. She truly believed that Earnhart did what he thought was best. She encouraged council to conduct a Request for Proposals (RFP) for attorney services, and would encourage Eamhart's firm to put in for it. 54 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page McClure disagreed with the timing of this evaluation.In her opinion,the firm had performed well. The variety of expertise within the firm was an advantage; she had a lot of faith in this firm. Towsley supported this re-evaluation. The most troubling issue for her was the July special meeting and the executive session that had been called. She was concerned that a lack of communication was driving up the firm's bills. She was also confused about attorney representation, believing that Katie Davies was supposed to be attending council meetings more often. Keil gave the firm a good evaluation. She thought the firm provided excellent advice,but she was concerned that sometimes their advice went unheeded. Keil thought the new council needed to be the body to consider if an RFP was warranted. Casagranda referred to City Council Rules of Procedure, Rule 17, Giving Direction to Appointed Officials: regardless of the city attorneys'wishes,council had previously reconfirmed that this was the procedure that was to be followed. Casagranda was concerned that tonight's memo was requested by one council member,the subject of which was another council member,without ever notifying that council member or the body that the memo was being requested. Motion (Casagranda/Towsley) Direct administration to draft a Request for Proposals (RFP) for city attorney services. Seese was concerned that new council members would have a difficult time deciding whether to put the city attorney services out to RFP or not. Motion Failed Yes: Casagranda, Towsley, Seese No: McClure,Keil Wells agreed that the city attorney had to take direction from the body,but they were bound by duty to respond to potential unlawful acts. In response to Towsley, Wells said the city attorney drafted the memo in response to a potential legal concern. In response to Towsley,Wells said an infraction of city code should be addressed by the city attorney through the mayor. Casagranda disagreed and said Rule 17 should be followed so that there was a documentation trail that could be correlated with city attorney bills; the mayor did not have special rights to access the city attorney that other council members did not have. Using the form provided in the City Council Rules of Procedure for accessing city attorney services was the way to make the entire process transparent. EXECUTIVE SESSION Motion (Casagranda/McClure) Go into executive session to discuss the city clerk contract. Motion Passed Unanimous 55 City of Seward,Alaska City Council Minutes October 8, 2018 Volume 39,Page The city clerk was invited to remain. Council went into executive session at 9:38 p.m. Council came out of executive session at 10:00 p.m. Council appointed a negotiating team consisting of Council Members Towsley and McClure to meet with the city clerk. ADJOURNMENT The meeting was adjourned at 10:00 p.m. Brenda J. Ballou, MMC Marianna Keil City Clerk Vice Mayor (City Seal) 56 Agenda Statement Meeting Date: October 22, 2018 From: Brenda Ballou, City Clerk Agenda Item: Nominate, elect and swear in a Vice Mayor BACKGROUND &JUSTIFICATION: Per Seward Charter 3.3, Seward City Code 2.10.020 and City Council Rules of Procedures Rule 4, the City Council must meet and organize no later than 30 days after each regular city election.At the organizational meeting, after new members are sworn in,the next item of business is for the Council to nominate and elect one of its members to act as Vice Mayor in the absence of the Mayor. The City Council must select one of its members to serve as Vice Mayor. The Vice Mayor chairs the meetings in the absence of the Mayor and fills in for the Mayor at ceremonial functions when the Mayor is unavailable. hi the absence of the Mayor, the Vice Mayor shall possess all the powers of the mayor and all duties required of them by law or the City Council. Recommended Procedure: 1. The Mayor/Presiding Officer opens the floor for nominations. 2. The Mayor/Presiding Officer or any council member may then nominate one or more council members for Vice Mayor. 3. If only one nomination is received, a motion is made to close the nominations and cast a unanimous ballot for the chosen person. That motion will need a second and can be approved by unanimous consent(no roll call is necessary). 4.If more than one nomination is received,paper ballots have been prepared for each council member to sign and vote for a nominee,or council can conduct a voice vote.It takes four affirmative votes to be appointed. RECOMMENDATION: Nominate and appoint a Vice Mayor. The City Clerk will then proceed to swear them in. 57 Memorandum Date: October 22, 2018 From: Brenda Ballou, City Clerk Subj: Direction to Boards and Commissions to give periodic reports to the council It's that annual time of the year where the council must organize within 30 days after the regular city election and select either council members as Board and Commission liaisons, or direct Boards and Commissions to give periodic reports to the council. Resolution 2005-071 was approved on August 5, 2005, and allowed future councils the option to either appoint council liaisons, or to have individuals from each of the Boards and Commissions to give periodic reports to the City Council at their regular meetings. For the past several years, council has chosen to direct individuals from the Boards and Commissions to give periodic reports to the City Council, but it remains council's option to decide what direction they wish to give the Boards and Commissions. RECOMMENDATION: After discussion, the Mayor appoints a liaison with the Boards and Commissions or requests periodic reports be given to the City Council. If council wishes to have council liaisons to the Boards and Commissions, the council member appointed to the Kenai Peninsula Economic Development District(KPEDD)will automatically be the PACAB liaison. City Council Rules of Procedure RULE 4. The City Council must meet and organize not later than 30 days after each regular city election. At this organizational meeting, the Council elects one of its members to act as Vice-Mayor in the absence of the mayor. In addition, the Mayor may appoint the council liaison to the Planning Commission and the council representative to the Kenai Peninsula Borough Economic Development District. [See Rule 29(c) and SCC§2.10.020] RULE 29. (c) Council Liaisons. In order to build additional Council expertise in various areas of city operations, the Presiding Officer may appoint one Council member to serve as a liaison to the Planning and Zoning Commission. These appointments shall be made at the Council's organizational meeting in October. If appointed, the council representative to the Kenai Peninsula Borough Economic Development District shall serve as liaison to the Port and Commerce Advisory Board. If council liaisons were not appointed, a member of each Board and Commission will arrange to give periodic reports to the city council during Council's regular scheduled meetings. 58 City of Seward,Alaska City Council Minutes October 23, 2017 Volume 39,Page Appoint a council liaison or direct individual Boards &Commissions to give periodic reports to the City Council. By Unanimous Consent, council directed the following reporting schedule: Planning & Zoning Commission • 1Q18 —in person report at a council meeting • 2Q18 —written report submitted to City Clerk for inclusion in the council packet • 3Q18 —in person report at a council meeting • 4Q18 —written report submitted to City Clerk for inclusion in the council packet Port& Commerce Advisory Board • 1Q18 —in person report at a council meeting • 2Q18 —written report submitted to City Clerk for inclusion in the council packet • 3Q18 —in person report at a council meeting • 4Q18 —written report submitted to City Clerk for inclusion in the council packet Historic Preservation Commission • Annual report to council 59 City of Seward,Alaska City Council Minutes October 23, 2017 Volume 39,Page Appoint a city representative to the Kenai Peninsula Economic Development District (KPEDD). McClure volunteered to be the city's representative, and council approved by Unanimous Consent. 60 Memorandum Date: October 22, 2018 From: Brenda Ballou, City Clerk Subj: Annual organization of the council appointment of Kenai Peninsula Economic Development District Representative An action needing attention during the organizational meeting of the City Council is the appointment of the Kenai Peninsula Economic Development District's(KPEDD)City of Seward representative. Council Member Sue McClure has been the representative serving on the Board of Directors,with a term that expires December 31, 2018. Recommendation: After discussion and with consent of the council, the Mayor appoint a city representative to the KPEDD beginning January 1, 2019. City Council Rules of Procedure RULE 4. The City Council must meet and organize not later than 30 days after each regular city election.At this organizational meeting,the Council elects one of its members to act as Vice-Mayor in the absence of the mayor. In addition,the Mayor may appoint the council liaison to the Planning Commission and the council representative to the Kenai Peninsula Borough Economic Development District. [See Rule 29(c) and SCC§2.10.020] RULE 29. (c) Council Liaisons. hi order to build additional Council expertise in various areas of city operations, the Presiding Officer may appoint one Council member to serve as a liaison to the Planning and Zoning Commission. These appointments shall be made at the Council's organizational meeting in October. If appointed, the council representative to the Kenai Peninsula Borough Economic Development District shall serve as liaison to the Port and Commerce Advisory Board.If council liaisons were not appointed, a member of each Board and Commission will arrange to give periodic reports to the city council during Council's regular scheduled meetings. 61 Agenda Statement Meeting Date: October 22, 2018 From: Brenda Ballou, City Clerk Agenda Item: Appoint City Council Liaison to the Seward Community Health Center Coordinating Committee BACKGROUND & JUSTIFICATION: Per Resolution 2014-018, Approving a co-applicant agreement between the Seward Community Health Center (SCHC) and the City of Seward, Section 5, the City Council must select one of its members to serve as the liaison to the Coordinating Committee. Since April, 2014, outgoing Vice Mayor Keil has acted as the liaison. Following the October 2, 2018 election, Keil is retiring from City Council and a replacement must be appointed. Resolution 2014-018, Section 5 Parties' Agreement To Participate In Coordinating Committee 5.1 For purposes of implementing, amending, or renewing this Agreement, the Parties agree to participate in a Coordinating Committee comprised of one member each of the Governing Board,the City Council, the Health Center Executive Director, and the City Manager, or their respective designees. 5.2 Meetings may be called by any one member of the Coordinating Committee and may be held telephonically or electronically. Recommended Procedure: 1. The Mayor/Presiding Officer opens the floor for nominations. 2. The Mayor/Presiding Officer or any council member may then nominate one or more council members for Coordinating Committee Liaison. 3. If only one nomination is received, a motion is made to close the nominations and cast a unanimous ballot for the chosen person. That motion will need a second and can be approved by unanimous consent(no roll call is necessary). 4.If more than one nomination is received,paper ballots have been prepared for each council member to sign and vote for a nominee,or council can conduct a voice vote.It takes four affirmative votes to be appointed. RECOMMENDATION: Nominate and appoint a Coordinating Committee Liaison to the Seward Community Health Center. 62 Memorandum Date: October 22, 2018 From: Brenda Ballou, City Clerk RE: City Clerk's Offices Closed November 13 & 14, 2018 The City Clerk's office will be closed on Tuesday,November 13&Wednesday,November 14,2018 while the staff attends the annual Alaska Association of Municipal Clerks(AAMC)Conference for training and education. Please note that Monday, November 12, 2018 is Veterans Day, and all city offices will be closed in observance of the holiday. 63 CITY PROJECTS & GOALS Updated for October 22, 2018 City Council meeting The following list of City Council projects and goals was reviewed, discussed, and updated at the February 12, 2018 City Council meeting. 1. ADA ACCESSIBLE PARKING AT CITY HALL Council directed the city clerk to provide a history of why the location for municipal elections was moved from City Hall to the K.M. Rae Building, as it related to ADA accessibility. City Clerk history and status provided February 27, 2018. First floor restrooms currently under renovation to provide one large ADA-accessible family restroom, in addition to one men's and one women's restroom. The first floor restrooms in City Hall were completed May 14, 2018. Fifth Avenue parking is not practical due to challenges with grade and distance; Adams Street parking must be reserved for Police Department access; Public Works is currently researching the feasibility of a modification to the SE corner of the back lot, as well as modifications to second floor restrooms. Clerk's office received ADA analysis kit from Division of Elections (DOE); clerk worked with Public Works Director Doug Schoessler and Assistant City Manager Brennan Hickok to perform the analysis on September 12, 2018. The city clerk has furnished the DOE with results and is awaiting a response. 2. SET LOCATION FOR SATELLITE FIRE STATION AND PUBLIC WORKS BUILDING Administration is currently reviewing a concept public private proposal to house the Quint (ladder truck) on the city-side of the bay. The Interim City Manager and Assistant City Manager met with the city's State lobbyist, Kent Dawson on October 15, 2018. Dawson is confident that the state will have a capital budget this coming session. The opportunity to push for this project as a State Legislative Priority will be coming to council on November 26, 2018. 3. DISCUSSION ON AIR FORCE RECREATION CAMP SITE Council held a joint work session with the Planning & Zoning Commission on February 28, 2018. Directed administration to have Community Development bring forward multiple land use concepts. (Previous council work session was held September 25, 2017). April 9, 2018 work session to discuss development concepts. Following April 9, 2018 work session, administration has initiated the rezone of the property to Auto Commercial (AC), the replatting of lots generally as presented at the work session, and the creation of a subdivision and utility development plan. Ordinance 2018-009 introduced on October 8, 2018 amending the zoning and land use plan from Institutional to Auto Commercial; will come for public hearing and enactment on October 22, 2018. 4. SALTWATER HEAT PUMP PROJECT The state capital budget approved $725,000 for this project; currently awaiting Governor Walker's signature. Administration is working with the design engineer to update costs and ROI models in order to identify any potential funding shortfall and prepare strategies for additional funding sources, if necessary. City Administration has received an estimated project cost of $965,000. The $240,000 difference will need to be funded by the City. This obligation includes in-kind and cash contributions as well as already spent funds on the testing well. We are currently waiting for grant documents from the Alaska Energy Authority. State lobbyist Kent 64 Dawson expressed that the likely new Governor will be interested in Economic Development projects. The potential for expanding on this loop using state grant dollars exists. 5. ENERGY EFFICIENCY OF CITY HALL 6. GROUND TRANSPORTATION FOR AMBULANCE SERVICES Directed administration to provide an update on ground transportation for ambulance services. 7. ANIMAL SHELTER IMPROVEMENTS (Council passed Resolution 2017-035, Authorizing Replacement Of The Roof Of The Seward Animal Shelter, In An Amount Not To Exceed$6,851.00, And Appropriating Funds.) March 19, 2018 work session; directed administration to look into potential locations and funding options. Resolution 2018-049 approved at the May 29, 2018 meeting, authorizing the creation of the Animal Shelter Relocation Fund and approving start-up funds. Update: Resolution 2018-080 being considered on September 24, 2018 for council approval will relocate the Animal Shelter to Fort Raymond. Resolution 2018-080 was approved on September 24, 2018, providing land for the new shelter location. City staff is now conducting meetings with local organizations to discuss design, build,fund raising and funding efforts. 8. UPDATE THE KPB TSUNAMI WARNING MESSAGE TO INCLUDE SPECIFIC REFERENCE TO THE LOCAL RADIO STATION (91.7/106.1) Directed administration to provide an update on the status of modifying the tsunami warning announcement to include specific radio information, and also request the borough add a sticker to their brochures which identifies the Seward radio station. Resolution 2018-019 designated KIBH-FM 91.7 as the city's official radio station for emergencies, and authorized the City Manager to work with borough to include radio station information in tsunami warning broadcasts. 9. INCENTIVIZE FAMILY ENTERTAINMENT-TYPE BUSINESSES TO COME TO SEWARD Zoning changes and Replat of the Air Force Rec Camp property will provide ample space and opportunity for such business. 10.AFFORDABLE HOUSING(INCLUDING SUMMER WORKER HOUSING) Council will hold a work session in May, 2018.(Previous council work sessions were held on May 22, 2017, June 12, 2017, and July 11, 2017). Community Development will be discussing with Planning and Zoning assessment districts on October 16, 2018. 11. SEWARD COMMUNITY HEALTH CARE CENTER EXPANSION Directed administration to provide an update on the Seward Community Health Care Center expansion. March 12, 2018 council meeting authorized to pay up to $1,500 in travel expenses for Jean Bardarson to travel with city representatives to Washington, DC in April, 2018 (April 14-18, 2018 trip to Washington, DC). A grant in the amount of$285,000 was awarded to the CHC for expanding access to quality substance use disorder and mental health services. The CHC is using these funds to subcontract with SeaView Community Services to provide mental health services in support of the local schools. 12. BUILDING MAINTENANCE 65 Public Works has been conducting their annual boiler inspections. General maintenance and repair is complete. Staff has identified the need to upgrade the heating controls for City Hall, City Hall Annex, and Community Center. Estimated cost for these upgrades is $200,000. 13. LED LIGHT CONVERSIONS Public Works replaced 15 fluorescent fixtures with LEDs in the City Hall Annex. 14. EXPLORE POSSIBILITIES FOR CREATING A REVENUE STREAM FOR THE ANIMAL SHELTER AND SOS PETS Staff and organizing groups have indicated that a dog washing station will be included in the design and build of the new Animal Shelter. 15. PURSUE AVENUES TO INCREASE WINTER RECREATION OPPORTUNITIES 16. CONDUCT CITY-WIDE DISASTER EXERCISE TO INCLUDE MOVING RESOURCES, EVACUATION FO THE PUBLIC, ENGAGING OUTSIDE AGENCIES, AND PUBLIC INFORMATION DISSEMINATION 17. EXTEND CITY UTILITIES INTO VIABLE AREAS TO SUPPORT FUTURE RESIDENTIAL HOUSING Community Development will be discussing with Planning and Zoning assessment districts on October 16, 2018. OTHER COUNCIL-DIRECTED PRIORITIES 1. LOWELL POINT ROAD STORM DAMAGE REPAIR The Request for Proposals for the engineering should be out by the end of October. As soon as the design is complete, the contractor will then put out a bid packet and select a contractor. Construction is estimated to begin in the spring of 2018. 2. INVESTIGATION INTO CLAIMS OF DEFAMATION AND FRAUD Ongoing. Report for City Council October 22, 2018. COUNCIL COMMITTEES 1. February 26, 2018, council created an Ad Hoc Committee consisting of Council Member Horn, Council Member Casagranda, and Mayor Squires to work with administration to develop a Request for Proposals for conducting a third party investigation of city personnel matters. At the May 29, 2018 council meeting, the city manager was directed to contact the DCRA and arrange for an audit of administration, personnel, and council. Based on the results of that event, council will decide whether or not to continue with this committee. At the August 13, 2018 meeting, Assistant City Manager Brennan Hickok reported that the DCRA declined the city's request for an audit because it was beyond the scope of their duties/capabilities. Assistant City Manager Brennan Hickok reported at the September 10, 2018 that he had sent an email to council on August 31, 2018 with responses from the DCRA regarding Title 29 (Municipal 66 Government) training they could provide, if council wishes. Request for Proposal has been sent to committee members. Group should meet to discuss. COMPLETED PROJECTS 1. RESEARCH ELECTED/APPOINTED OFFICIAL TELECONFERENCING POSSIBILITIES FOR MEETINGS Directed the city attorney to provide advice on teleconferencing possibilities for elected and appointed officials. City Attorney opinion provided February 14, 2018. 67 City of Seward, Alaska Monthly Budget Report For the month ended August 31, 2018 We are pleased to provide this budget report for the month ended August 31, 2018. The intent of this report is to provide transparent financial and budgetary information to the public, and to present information in a format that combines narrative and graphical elements, to make it easier to understand. The report includes the following components: 1) the narrative report explains the highlights of financial results for the General Fund; 2) revenue and expenditure/expense budget-to-actual report for General Fund and Enterprise Funds; 3) cash balances in all City funds; and 3) risk area assessment. This monthly report includes data for the City's General Fund and the City's enterprise funds (Harbor, SMIC, Electric, Water, Wastewater, and Parking Funds. We welcome comments from the City Council or the public as to how we may improve this document to make it more useful for timely decision making. The presentation of this financial information aims to meet the requirements for financial reporting as defined by the Seward City Council in Resolution 2008-59. If you have questions or require additional information,please feel free to contact finance director Kristin Erchinger at(907)224-4064, or by e-mail at kerchinger@cityofseward.net. August Financials as of 10/16/18 1 68 GENERAL FUND Analysis of Revenues General Fund Revenues are at 42% of the annual budget as of August 31, 2018, with 67% of the calendar year completed. This compares to prior years through August as follows: 2017 (54%), 2016 (55%) and 2015 (58%). The primary reason for what appears to be lower revenues through August of 2018, has solely to do with the later timing of sales tax receipts. In 2017 and years prior, the sales tax revenues for July were collected in August; in 2018, revenues in the amount of$1,362,376 were not collected until September. Had the timing of the check been consistent, the sales tax revenue line item would be at 55% through August which compares favorably to the 54% in 2017, 52% in 2016 and 50% in 2015. The total General Fund revenue would be 55% at the end of August had that check been receipted in August rather than September. This would be comparable to August of 2017 (54%), 2016 (55%) and 2015 (58%). The General Fund's single largest revenue source is sales taxes and revenues through August are at $1.38 million, or 28% of the annual budget, for the reason stated above. Seward's largest quarter for sales tax revenue is June through August, and those taxable sales results will be reflected as receipts in November. The overall sales tax budget for 2018 was conservative at $5,000,000 compared to 2017 final sales tax revenues of$5.1 million, so it is anticipated that sales tax revenues will exceed target. Property tax revenues are budgeted at $1,305,000 and revenues through August are $198,888, or 37% lower than the prior year, where through August, property tax revenues were $315,651. However, the bulk of property tax revenues are received after November, when taxes are due to the Kenai Peninsula Borough, so the lower revenue through August is not expected to be representative of anticipated property tax revenues. The City saw 21 residential construction permits issued in 2017 (total value of $1,070,477) and 14 commercial construction permits issued (total value of $2,324,733). The budget did not consider additional construction in property tax revenue projections. Due to the unbudgeted receipt of $50,883 in oil property tax through August 2018, it is expected that the City will exceed its property tax projections in 2018, although the magnitude of the increase is uncertain at this time. The City's mill rate increased in 2018 from 3.12 mills to 3.84 mills to reflect the passage of a voter-approved increase in the property tax to cover the cost of issuing general obligation bonds for a major road improvement project completed in 2017. Bonds were issued in the amount of $2.9 million and will require annual payments of approximately $210,000 annually over 20 years. Hotel/Motel taxes are budgeted at $500,000 which is lower than the 2017 actual revenues of $520,907 and through August, collections exceed prior year by $10,388. Although the increase could be a matter of the timing of bed tax payments, Seward has seen a significant increase in the number of nightly lodging and beds-and-breakfasts, so it is very likely that the increased revenues are persistent and will result in a budget surplus in this line item at year-end. The community development department has also identified, through a third-party independent research firm, that there are a large number of unlicensed operators. Staff will be working with the contractor to follow-up to ensure compliance and to bill operators who have failed to properly report and/or pay bed taxes. August Financials as of 10/16/18 2 69 GENERAL FUND Analysis of Revenues Beginning in 2018, the City agreed to allocate a portion of the Payment-in-Lieu-of-Taxes received from the Alaska Sealife Center, toward payment of their electric utility bill. As the owner of the Sealife Center, the City recognizes that the recent decision to set the Center on a glidepath toward reduced electric rate subsidies and toward full payment of the Large General Service rate is a significant challenge. The financial success of the Center is important for the taxpayers who otherwise may incur costs related to the facility. For that reason, the City is using monies received from the Center toward their utility bill, in accordance with the 2018/2019 approved budget. That is reflected then, in two General Fund revenue line items (4030 and 4031), where PILT receipts of$39,384 are offset by contributions to the Electric Fund of$32,580. The total utility contribution was made in a single month solely for administrative purposes, so there are no additional contributions expected through the end of the year (reflected in account 4031 — Contra Payments in Lieu of Tax). Alaska Raw Fish Taxes are expected to be collected in full toward the end of October, so are not reflected as of August. Federal grant revenues totaling $19,985 represent $17,989 in funding toward fire department equipment and $1,996 for library-related education and training. State grant revenues are budgeted at $35,752 and primarily represent fire-related grants and police DUI enforcement funding. Revenues for these grants will be recorded when the activities related to the grant activity are concluded. Administrative revenues (accounts 4301 through 4306) represent the recovery of administrative services provided by the departments of the General Fund, to enterprise funds of the City. Those revenues are pro-rated each month based on 1/12t' of the annual budget. Through August, campground-related revenues total $785,050 compared with August 2017 of $746,730, 2016 of $757,615, and 2015 of $605,911. Campground-related revenues bring in the equivalent of a 2.34 mill property tax and represent the highest and best use of the community's valuable waterfront park properties. August Financials as of 10/16/18 3 70 GENERAL FUND Analysis of Expenditures The General Fund expenditure are $7.4 million at the end of August, representing 63% of the annual budget, with 67% of the year having expired. Salary and benefit costs are at 63% of the annual budget, representing a positive year-to-date budget variance of $332,850. The General Fund does appear able to meet its personnel vacancy factor of$150,000 savings, which was budgeted for the first time in 2018. General Fund overtime was reduced significantly in the budget, to $23,570 currently, as a means to balance the budget, but fully recognizing that when departments required overtime, they would have to find budget savings in other line items. Comparing the Salaries (line 6000) line item to the Overtime (line 6001) demonstrates that due to the challenges associated with filling positions, a number of departments have experienced inadequate staffing levels. This is evidenced by a positive variance from budget-to-actual of $336,503 in Salaries, offset by a negative variance from budget-to-actual of $145,711 in overtime through August, with total overtime through August of $162,613. The departments experiencing shortages necessitating overtime primary include the City Clerk, Finance, Police, Jail, Campgrounds, Sports and Rec and TRR. Overtime in the General Fund breaks by department, as follows: OVERTIME BY DEPARTMENT Boards&Commissions 29 City Clerk 1,340 City Manager 234 MIS 502 Finance 4,676 Police 51,534 Jail 50,986 Animal Control 588 Roads&Streets 8,489 Snow&Ice 15315 City Shop 447 Municipal Buildings 29 Parks Maintenance 3,794 Campgrounds 11,929 Cemetery 357 Sports&Recreation 7,887 TYC 1,611 Teen Rec Room 2,833 Library 36 $ 162,613 Under personnel costs, a new line item (6209 — Contra-Retirement PERS) represents the State of Alaska rebating to cities, the employer portion of retirement contributions for DC employees who leave employment but do not vest, thereby entitling the employer to a refund of employer contributions. Through August, the City has received $19,619 in refunded contributions, most of which is related to prior year contributions which are only now being refunded due to the State making a final determination as to how to treat those contributions which have accrued in the approximately ten years the DC program has been in place. Through August, the bulk of the City's General Fund insurance has been paid for the year, so we do not anticipate exceeding budget in this line item for the full year. Legal fees through have exceeded the annual August Financials as of 10/16/18 4 71 budget by $118,148 but we do not anticipate requesting an additional appropriation for legal fees unless we are unable to absorb the added costs within the remainder of the budget. Utility costs appear to be under- budget, but high refuse fees in the summer will offset the current savings. The second-half of hotel/motel bed tax to the Chamber of Commerce for marketing and economic development, was made in September. Building expenses are related to replacement of overhead garage doors due to wear and tear and damage, and modifications in the Annex. Departments are working hard to forego expenditures in order to meet current budget challenges. August Financials as of 10/16/18 5 72 ENTERPRISE FUND Highlights For all enterprise funds, depreciation expense and amortization revenue (the process of matching grant revenues over the life of the assets they have funded) for the entire year have now been allocated. Investment income which has been generally low due to the historically low interest rate environment, have been allocated through May, 2018 and will be caught up in time for finalization of September financials. Harbor Enterprise Fund Through August, Harbor Revenues are at 79% of budget, with 67% of the year expired. Moorage revenues are generally recorded early in the year for those customers who pay for annual moorage, and those revenues appear on track to exceed budget for the year. Wharfage fees exceed the annual budget by $8,527 at $56,527. Boat lift fees are at 65% and Launch fees are primarily recorded in July and August, with revenues through August at 72%, suggesting a possibility that the budget may not be met in this line item. However, due to the beautiful September weather, it is likely that many boat owners delayed hauling out their vessels until later in the year, so it is still possible to meet the budget for launch revenue. Harbor expenses through August are at 56%. However, debt service principal payments are budgeted at $514,354 and have not yet been made, so assuming that those expenses come in at budget, the harbor would be right on target with expenses, at 67%. The Harbor has a large budget surplus in terms of salary and benefit costs, but that is largely due to added effort being expended at SMIC due to the harbor expansion project and newly-established SMIC leases, where the harbor staff splits their time between the Harbor and the SMIC enterprise funds, and where costs are higher at SMIC than expected (and correspondingly lower in the Harbor). Compared to the year-to-date budget through August, the Harbor exceeds budget in terms of insurance costs due to the finalization of capital projects which are now added to insurance coverage. General Power for Resale (line item 7100) is related to the energy costs associated with customer-usage of utilities which are expected to be recovered through the Harbor's utility billing to their customers (shown in revenue line item 5105). The Harbor Enterprise Fund maintains its own internal allocation of costs and those related costs are shown in line items 7321 through 7325. If Harbor costs are not easily assigned to a specific cost center (i.e. floats, docks, boat lift), they are aggregated within a Harbor General and Harbor Administration division, and then allocated out to the other cost centers, including to SMIC, in an attempt to identify the true costs of each cost center. This administrative exercise makes it possible to do abetter job of setting rates intended to recover the cost of providing a particular service which is identified at the "department" level within both the Harbor and SMIC Funds. SMIC Enterprise Fund Through August, the SMIC Fund is at 76% of budgeted revenues which is higher than expected. The Fund is exceeding budget projections for land lease revenues, primarily as a result of new leases being negotiated due to growing interest in business expansion at the port. The new washdown pad revenues were budgeted conservatively, reflecting the first year of operations where utilization levels were largely unknown. Those fees appear to be on target to exceed budget estimates. Boat lift fees have already exceeded the annual budget by $12,159 at 109%through August, with staff reporting a significant increase in demand for the boat lift and travelift on both sides of Resurrection Bay. Depreciation has been booked. Power Sales are exceeding the annual budget by $67,292 primarily based on the presence of the jack-up rig that occupied space within the breakwater much of the year. Miscellaneous revenues (line item 5899) reflect the administrative overhead fees collected from the administration of State grants for the SMIC expansion August Financials as of 10/16/18 6 73 project. Council has already earmarked the entirety of these fees for capital purposes related to the expansion project. Salary and benefit costs are exceeding budget projections through August (at 91% of annual budget) due primarily to the increased activity resulting from the new basin, expansion of the travelift pit, and new washdown pad. The salary costs of the personnel at SMIC are allocated based on the Harbor staff's pro- rated effort between the harbor and SMIC. All of these budgetary signs show promise for the growing economic activity at SMIC which is expected to result in positive financial performance for the SMIC Fund which has historically been a drag on the City's finances. Parking Enterprise The Parking operation has exceeded the entire year's budget by the end of August. The finance department had delayed posting revenues for the parking fund due to the meter exchange project, but all revenues are posted and up-to-date in these financial statements. The largest area of increase is in the North Harbor Lot revenues which are at 149% of the annual budget. In addition, all categories of parking passes have exceeded the annual budget project, especially the vehicle with trailer (145%) due to an increase in that annual pass cost effective in 2018. Revenues generated by the Parking Fund are used entirely to cover the cost of maintaining the parking lots, repaving/sealing/striping, and funding parking management and operations. Parking Fund expenses are at 8 1% through August which is higher than the percentage of the year that has expired (67%) but that is expected since the operations of Parking are largely concluded by the end of September, so the bulk of the year's operations are nearly completed through August. The Parking operation had a difficult time hiring sufficient staff this year which accounts for a portion of why the salary and benefit budget is only at 52%. A final end-of-season adjustment will be made to allocate a portion of parks and recreation administrative costs to the Parking Fund which will be reflected in the personnel cost portion of the budget. Operating supplies are higher for the year due to the purchase of new signage for all of the parking lots,providing improved way-finding and payment information. Capital equipment purchases in this Fund included a new bobcat toolcat approved by the City Council, as well as replacement pay stations necessitated by the phase-out of older technologies by the equipment vendor to improve PCI compliance and improve security associated with customer credit card payments. August Financials as of 10/16/18 7 74 Electric Enterprise The Electric Enterprise Fund is exceeding budget targets in many line items. With 67% of the fiscal year complete, the revenue budget is at 66%. It is possible that the enterprise fund could end up coming in under budget on revenues given that consumption tends to be higher in summer months when the higher seasonal rates are in effect. In other words, as we move into winter, consumption is lower and that will be coupled by a decrease in the City's portion (only) of the customer's Seward Utility Charge. Some fuel cost revenue line items are slightly above budget due to variances in projections of fuel costs which are directly passed through from Chugach Electric Association. In other words, these revenues will be directly offset with increased costs of power on the expense side of the budget. The SMIC power consumption revenues have already exceeded 100% of the annual budgeted revenues for SMIC power, based largely on increased economic activity on the East side of Resurrection Bay. In August, the revenue line item for Small General Service is negative. This has to do with a reversal of two customer accounts over-billed prior to August, based on the swap-out of old meters. Due to a change in the meter multiplier, the new meter billed correctly but the old meter was significantly over-billed prior to August and a correction made in August. These one- time adjustments are resolved once the issue is identified and a correction is made. The Electric overall budget is at 65% of expenditures through August, and depreciation has been recorded. Salary and benefit costs through are at 57% overall, with overtime at 85% through August. Insurance costs exceed the annual budget by $2,573. Contracted service costs are significantly under-budget by $467,000 through August due primarily to a delay by the department, in carrying out planned capital projects. The Spring was largely taken up with completion of the swap-out of nearly every electric meter in the service area, consuming a large portion of the department's personnel effort, leaving less time to work on major capital projects. If these funds are not spent, we can expect a budget surplus at the end of the year as a result. The costs of purchasing power from Chugach (reflected in line item 7101) are at 60% but reflects the payment of only seven months of bills through August. When adjusted for the accrual of an additional month of costs, this line item would exceed budget at approximately 69% of the annualized budget. Fuel costs associated with power purchases are considerably higher than budget and will exceed the annual budget by year-end. The line item "fuel for generators—7103) does not yet reflect the costs associated with running the generators during the recent incident involving damage to electric poles near Nash Road, but those costs will be reflected in September's financials. The line item for infrastructure (8101) reflects a budget of $210,000 associated with infrastructure upgrades planned by the electric utility, but not likely to be completed by year-end due to competing crew priorities. To the extent that these funds are not expended by year-end, that will result in a budgetary surplus in that line item. The work order line items (8200 and 8201) show no activity through August, reflecting the fact that the electric department has not submitted work orders for billing through August. Water Enterprise The Water Fund revenues are at 66%through August, right on target. Most revenue line items are exceeding budget with the exception of Special Contracts which are at 41% of the budget through August. This category primarily reflects our largest consumers of water (Icicle Seafoods, Alaska Sealife Center, Resurrection Bay Seafoods) and the lower annual revenues in this category are due primarily to efficiency measures put in place by Icicle Seafoods to recycle water in order to reduce water consumption and by extension, utility charges. Water Fund expenditures are at 64% through August and depreciation has been recorded. Salary and benefit costs are at 63% of the annual budget. Insurance costs in this Fund exceed budget by $5,373 due to new infrastructure (water storage tank)being insured, which was not fully accounted for during budget creation. August Financials as of 10/16/18 8 75 Sewer Enterprise The Sewer Fund revenues are at 68% through August and amortization has been booked. Amortization is a means to "match" the revenues associated with the receipt of grants, with the depreciation associated with the assets purchased with grant funds. The revenues for residential and small/large general service sales and miscellaneous service fees, representing the bulk of the Fund's primary revenue stream, and are generally on-target to meet budget projections. The Wastewater Fund expenses are under budget through August, at 56% (versus 67% of the year completed). Salary and benefit costs are at 58% in part due to lower costs associated with the retirement of tenured employees. Costs for accepting credit cards for payment of utility bills are at 90% of the budget, and insurance costs are at 78% due to the higher valuation of properties being insured (repairs to two sewer lagoons). There have been no legal expenses related to the Sewer Fund through August. Contracted services are well below budget at only 3% due to budgeted projects not being started. Utility costs are considerably lower than budget, at 44%. 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D W Ul CD �Nd CA rD OACAi dNCAN NO W V Ch 61 OCO00 N V pp�D V im CDT N-;W a C" CD OVOAVa WN0V0i 000i0 WO V Ow c000 ChN0 CID ODV CACD"WOAOV 0 W O� N C L 4 6D CR Ch O CA O W hhW Ul C h-I h A 0 A s C] Cn Ch OCAOGo OfdO0 O ODCJ fDO V ODWqG OO A UAI m C00VGO C5 C NN OD go FD G N)(A[TG V W 0-100NCD AO 000 W0 " CA 000CoyyNOG CD OVOhNO 00 VO W CA CO O O O OW W0 CD V 000NW03O 0 CD Co M—C ODV j� Com+ d 128 Case Balances by Ford (Cen,tra-1 Treasury Report) August 3-1, Cash Balance at8/31/18 General Fund 4,247,930.90 {a} Teen Council Agency Fund 37,448.78 Motor Pool 1,607,553.71 Compensated Absences 407,017.03 Harbor 2,265,945.77 Harbor MRRF 343,647.56 Harbor Passenger Fee 378,209.20 Harbor CPV 1,151,545,45 (b) Harbor Launch Ramp 400,350.85 SMIC 246,271.78 (c) SMIC Expansion (1,165,663.76) (d) Parking 1,069,845.45 Electric 6,327,739.83 (e) Electric MRRF 957,301.76 ElectricT-Line 566,135.55 Water 1,261,585.01 Water MRRF 852,572.15 Water Tanks 461,022.62 Wastewater 1,440,674.83 Wastewater MRRF 742,025.05 Hospital Fund (1,716,646.92) (f) Hospital Expansion 625,611.31 (f) Mountain Haven 3,225,572.10 (f) Parks Fund 2,497.54 CHC City Fund 19,113.36 CHC HRSA Fund (30,030.81) (d) Shuttle Bus Fund (40,531.19) (d) Erosion Fund 2,150.00 Litter Patrol Fund (4,075.66) (d) Litter Patrol Grant Fund (1,246.80) (d) FEMA 2013 Flood (15,133.05) (d) Capital Acquisition Fund 1,710,521.23 Animal Shelter Fund 167,922.50 (8) Streets Fund 761,491.98 Kawabe Park Fund 5,928.54 Flood Mitigation Fund 250,000.00 (h) 28,562,303.65 a) Reduced due to budgeted transfers made through 8/31/18. b) Funds to be used for South Harbor Launch Ramp project,if needed. c) Positive cash balance due to GF transfer per 2018 Budget. d)To be reimbursed through grant. e) Reflects recording 2018 budget transfers to GF f) Reflects recording 2018 budget transfers g) New Fund created since last report h)City match related to Lowell Canyon Tunnel 129 a p. Cygp+ a a p a e a to pi N U S o ivg pp ea C a _ Ila ' H Rlg A 1 H N n � b 130 Providence St.Joseph Health BAL_Balance Sheet_WD_EAL 110-PROVIDENCE SEWARD MED CENTER-MGD Entity-110 Balance Sheet(Whole Dollars) Printed On 9/19/18 @ 1:08 PM Reported as of August 2018 Printed By vdedik August December August December 2018 2017 2018 2017 Actual Pr.Year Actual Pr.Year ASSETS LIABILITIES&NET ASSETS Current Assets: Current Liabilities: Cash and Cash Equivalents 2,531,527 779,547 Accounts Payable 851,595 188,139 Mgmt Designated Cash&Cash Equiv. - - Accrued Compensation 1,070,724 905,895 Patient Accounts Receivable 5,039,310 4,352,997 Deferred Revenue-Unearned Premiums 735,253 735,253 Less:Contractual Allowance (1,053,661) (549,207) Payable to Contractual Agencies 31,636 17,000 Less:Allowance for Doubtful Accounts (883,696) (1,148,034) Other Current Liabilities 8,721,312 7,312,418 Affiliate Receivable 143 Total Current Liabilities 11,410,520 9,158,704 Other Receivables (636,355) 419,193 Supplies Inventory 42,454 47,611 Other Current Assets 17,800 15,000 Long-Term Debt: Total Current Assets 5,057,379 3,917,250 Other Long Term Liabilities 956,591 1,162,210 Assets Whose Use is Limited: Funds Held for Long Term Purposes (290,485) (252,794) Total Liabilities 12,367,111 10,320,914 Assets Whose Use is Limited (290,485) (252,794) Property.Plant&Equipment: Net Assets: Property Plant Equipment Gross 315,033 315,033 Unrestricted (6,345,562) (5,386,610) Accumulated Depreciation (290,342) (274,745) Temporarily Restricted 39,653 36,705 Property Plant Equipment Net 24,691 40,287 Total Net Assets (6,305,909) (5,349,905) Other Long Term Assets: Total Liabilities and Net Assets 6,061,202 4,971,010 Other LT Assets 1,269,617 1,266,266 Total Other LT Assets 1,269,617 1,266,266 Total Assets 6,061,202 4,971,010 131 Providence St.Joseph Health INC_DET_OPS_1 WD_FAL 110-PROVIDENCE SEWARD MED CENTER-MGD Dept AlDepanmems-AIIDepartmems Detail Statement of Operations(Whole Dollars) Printed On 9/19/18(a)1:08 PMPrimed By vdedik Reported as of August 2018 Month-To-Date Year-To-Date Actual Budget %Variance Actual Budget %Variance Pr.Year %Variance Gross Service Revenues: 179,346 289,737 (38.1%) Acute Care-Inpatient 1,703,571 2,044,590 (16.7%) 1,566,392 8.8% 1,289,618 1,275,415 1.1% Acute Care-Outpatient 7,879,923 8,098,761 (2.7%) 8,140,624 (3.2%) 250,353 288,780 (13.3%) Primary Care 1,475,855 1,638,211 (9.9%) 1,682,355 (12.3%) 1,545,935 1,109,196 39.4% Long-term Care 11,472,710 8,684,624 32.1% 7,994,435 43.5% - 35,805 (100.0% Housing Assisted Living - 121,605 (100.0%) - - 3,265,252 2,998,933 8.9% Total Gross Service Revenues 22,532,059 20,587,791 9.41% 19,383,806 16.2% Revenue Deductions: 627,700 41,616 (1,408.3%) Charity Care 1,492,571 349,451 (327.1%) 295,417 (405.2%) 769,482 634,822 (21.2%) Medicare Medicaid 5,211,647 5,026,379 (3.7%) 4,422,346 (17.8%) 75,446 40,786 (85.0%) Negotiated Contracts 457,821 372,335 (23.0%) 377,110 (21.4%) 163,221 93,208 (75.1% Other Deduction Expense 782,644 753,311 (3.9%) 611,714 (27.9%) 1,635,849 810,432 (101.8%) Revenue Deductions 7,944,683 6,501,476 (22.2%) 5,706,587 (39.2%) 104,941 48,527 (116.3% Bad Debt Deduction 710,670 386,165 (84.0%) 577,320 (23.1%) 1,524,462 2,139,974 (28.8% Net Service Revenue 13,876,706 13,700,150 1.3% 13,099,899 5.9% 4,427 12,688 (65.1% Other Operating Revenue 79,704 101,504 (21.5%) 102,928 (22.6% 1,528,888 2,152,662 (29.0%) Total Net Operating Revenues 13,956,410 13,801,654 1.11% 13,202,827 5.7% Expenses from Operations: Other Expenses from Operations: 1,164,641 839,012 (38.8%) Salaries and Wages 7,814,611 6,507,775 (20.1%) 7,248,760 (7.8%) 211,744 222,344 4.8% Employee Benefits 1,752,539 1,750,259 (0.1%) 1,791,321 2.2% 9,982 22,143 54.9% Professional Fees Expense 184,510 170,115 (8.5%) 145,029 (27.2%) 65,053 99,308 34.5% Supplies 695,576 739,056 5.9% 663,167 (4.9%) 187,688 204,726 8.3% Purchased Services Expense 1,448,304 1,635,453 11.4% 1,620,993 10.7% 1,950 14,223 86.3% Depreciation Expense 15,597 113,779 86.3% 15,597 - (85,702) 11,250 861.8% Interest and Amortization - 90,000 100.0% 107,814 100.0% 4,933 381 (1,194.8%) Taxes and Licenses 51,551 3,048 (1,591.3%) 2,105 (2,349.4%) 140,767 106,795 (31.8%) Other Expenses 814,907 828,668 1.7% 741,567 (9.9%) 1,701,056 1,520,182 (11.9%) Other Expenses from Operations 12,777,594 11,838,153 (7.9%) 12,336,353 (3.6%) 1,701,056 1,520,182 (11.9%) Total Operating Expenses 12,777,594 11,838,153 (7.9%) 12,336,353 (3.6%) (172,168) 632,480 (127.21%) Net Operating Income 1,178,816 1,963,501 (40.01%) 866,474 36.0% 19 65 (71.1%) Non-Operating Gain(Loss) 55 520 (89.4%) 353 (84.3%) (172,149) 632,545 (127.2%) Net Income 1,178,872 1,964,021 (40.01%) 866,827 36.0% Other Activity-Unrestricted (2,137,823) (1,512,251) 41.40% Increase(Decrease)in UR Net Assets (958,952) (645,4231 48.6 132 Providence Health&Services BAL_STMT_CHG_IN NET ASSET_WD_EAL 110-PROVIDENCE SEWARD MED CENTER-MGD Actual Statement of Changes in Net Assets(Whole Dollars) Printed On 9/Print @ y vd PM Printed By vdedik Reported as of August 2018 9 of 11 UNRESTRICTED FUNDS Current Year to Date Prior Year to Date Beginning of Year (5,386,610) (4,141,511) Excess of Revenues Over Expenses 1,178,872 866,827 Restricted Contributions&Grants - - Net Assets Released from Rest. Interdivision Transfers Unidentified Differences Net Assets(Liabilities)Assumed Unrealized Gains(Losses)on Invest. Extraordinary Items&Other (2,137,823) (1,512,251) Total Change in Net Assets (958,952) (645,423) Ending Balance (6,345,562) (4,786,935) TEMPORARILY RESTRICTED FUNDS Current Year to Date Prior Year to Date Beginning of Year 36,705 22,930 Investment and Other Income - - Restricted Contributions&Grants 2,948 9,340 Net Assets Released from Rest. - - Interdivision Transfers Unidentified Differences Net Assets(Liabilities)Assumed Unrealized Gains(Losses)on Invest. Extraordinary Items&Other Total Change in Net Assets 2,948 9,340 Ending Balance 39,653 32,270 133 Providence Health&Services BAL_STMT_CHG_IN NET ASSET_WD_EAL 110-PROVIDENCE SEWARD MED CENTER-MGD Actual Statement of Changes in Net Assets(Whole Dollars) Printed On 9/Print @ y vd PM Printed By vdedik Reported as of August 2018 10 of 11 PERMANENTLY RESTRICTED FUNDS Current Year to Date Prior Year to Date Beginning of Year Investment and Other Income Restricted Contributions&Grants Net Assets Released From Rest. Interdivision Transfers Unidentified Differences Net Assets(Liabilities)Assumed Unrealized Gains(Losses)on Invest. Extraordinary Items&Other Total Change in Net Assets Ending Balance TOTAL ALL FUNDS Current Year to Date Prior Year to Date Beginning of Year (5,349,905) (4,118,581) Excess of Revenues Over Expenses 1,178,872 866,827 Investment and Other Income - - Restricted Contributions&Grants 2,948 9,340 Net Assets Released From Rest. - - Interdivision Transfers Unidentified Difference Net Assets(Liabilities)Assumed Unrealized Gains(Losses)on Inv. Extraordinary Items&Other (2,137,823) (1,512,251) Total Change in Net Assets (956,004) (636,083) Ending Balance (6,305,909) (4,754,664) 134 Providence Health&Services CF_CASHFLOW_STMT_WD_EAL 110-PROVIDENCE SEWARD MED CENTER-MGD Actual YTD Statement of Cash Flows(Whole Dollars) Printed On 9/19/18 @ 1:08 PM Reported as of August 2018 Printed By vdedik August August August August 2018 2017 2018 2017 Operating Activities: Financing Activities: Change in Net Assets (956,004) (636,083) Adjustments to Reconcile Net Cash Provided Increase(Decrease)in Cash&Cash Equiv. 1,751,979 205,908 by Operating Activities Depreciation 15,597 15,597 Cash and Cash Equiv-Beginning of Period 779,547 1,350,184 Provision for Bad Debts 710,670 577,320 Net Real/Unreal Gains Losses on Invest (55) (353) Cash and Cash Equiv-End of Period 2,531,527 1,556,092 Changes in Certain Current Assets/Liab 2,152,996 55,978 Increase Decrease in Other Liabilities (205,619) 209,353 Net Cash Provided by Used in Op Act 1,717,584 221,811 Supplemental Disclosure: Investing Activities: Net Investments Purchases Sales 37,746 198,651 FM Increase Decrease in Other Long-Term Assets (3,351) (214,555) Net Cash Provided by Used in Inv Act 34,395 (15,903) 135 Health Resources and Services =Y DEPARTMENT OF HEALTH& HUMAN SERVICES Administration Rockville,MD 20857 August 15, 2018 Dear City of Seward: For more than 50 years, health centers have delivered affordable, accessible, cost-effective, and quality primary health care to patients regardless of their ability to pay. Health centers advance a model of coordinated, comprehensive, and patient-centered care, integrating a wide range of medical, dental, mental health, substance use disorder, and patient support services. Today, nearly 1,400 health centers operate more than 11,000 service delivery sites that provide primary health care in every U.S. state, the District of Columbia, Puerto Rico,the U.S. Virgin Islands, and the Pacific Basin. In recognition of your 2018 Quality Improvement Award, the Health Resources and Services Administration is proud to present you with the enclosed certificate of achievement. As a Health Center Quality Leader, City of Seward achieved the best overall clinical performance among all health centers, placing in the top 30 percent of the adjusted quartile rankings for Clinical Quality Measures. Thank you for your commitment to providing quality primary health care services to your community. Sincerely, (Zr� - George Sigounas, MS, Ph.D. Administrator 136 Health R os o� C mCD SON 3 ZaN m ¢ aCD tn CD m � m z c m p -� c°n cj. c`D uoi1ea�s � cc 3o n _ �. M 3 _C:t l< (-) z � o o M o � O x Q —n (D -v C/) Q3 m —n 0 o cn > m D �' `� m 3 W m Q. z rn . v CL 137 October 2018 November 2018 October 2018 SuMo TuWe Th Fr Sa SuMo.TuWe.Th Fr Sa 1 2 3 4 5. 6 1 2, 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20• 11 12-13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25'26 27 28 29 30 Sun Mon Tue Wed Thu Fri Sat Sep 30 Oct 1 2 3 4 5 6 12:00pm 2:00p 12:00pm 2:00p m PACAB m Council tD Mtg WS O (Chambers) o - m a v m - 7 8 9 10 11 12 13 8:00am 12:00p m AAHPA (Council m, Chambers) 7:00pm 10:30p m CC Mtg (Chambers) 14 15 16 17 18 19 20 9:00am 5:00pm 6:00pm 7:00pm 12:00pm 2:00p F1 HOLIDAY-Off 12:00pm 2:00p Cancelled: P&Z WS, m PACAB m Council Personnel (Chambers) Work Session WS No Meeting 7:00pm 10:30p (Chambers) (Chambers) (Council m P&Z Mtg 2:00pm 2:30pm tj Chambers)- (Council CC Special 0 Josephine Chambers) Meeting Paukan (Declare Emergency) 21 22 23 24 25 26 27 7:00pm 10:30p m CC Mtg (Chambers) n N i ri N +a U 0 28 129 130 131 1 Nov 1 12 1 3 m - Z w , N U V O Council Calendar 1 10/16/2018 4:19 PM 138 November December2018 November 2018 SuMo TuWe Th Fr Sa SuMo Tu1Ne Th Fr Sa 1 2 3 1 4 5 6 7 8 910 2 3 4 5 6 7 8 11 12 13 14 15 16 17 9 10 11 12 13 14 15 18 19 20 21 22 23 24 16 17 18 19 20 21 22 2526 27 28 29 30 23 24 25 26 27 28 29 30 31 Sun Mon Tue Wed Thu Fri Sat Oct 28 29 30 31 Nov 1 2 3 0 z " co N . O 4 5 6 7 8 9 10 7:00pm 10:30p 12:00pm 2:00p m P&Z Mtg m PACAB (Council Mtg o Chambers) v 0 z 11 12 13 14 15 16 17 7:00pm 10:30p 4:00pm 4:30pm m CC Mtg SET (Chambers) employee meeting lunch(Fire > Station Train z 6:30pm 10:00p m HP Mtg (Chambers) 18 19 20 21 22 23 24 6:00pm 9:30pm 12:00pm 2:00p HOLIDAY-Off I I HOLIDAY-O P&Z WS m PACAB (Chambers) Work Session N (Chambers) 00 0 z 25 26 27 28 29 30 Dec 1 7:00pm 10:30p m CC Mtg i (Chambers) a, o L, N O z Council Calendar 2 10/16/2018 4:19 PM 139 December ZO1 SulVl 8 December2018 JanuWeTh9 D o TuWe Th Fr Sa SuMo Tu1N Th Fr Sa 1 1 2 3 4 5 2 3 4 5 6 7 8 6 7 8 9 10 11 12 9-10 11 12 13 1415 13 14 15 16 17 18 19 16 17 18 19 20 21 22 20 21 22 23 24 25 26 23 24 25 2627 28 29 27 28 29 30 31 30 31 Sun Mon Tue Wed Thu Fri Sat Nov 25 26 27 28 29 30 Dec 1 Ln 0 Z 2 3 4 5 6 7 8 6:00pm 7:00pm 12:00pm 2:00p P&Z-SBCFA m PACAB 0o Joint WS Mtg N 7:00pm 10:30p o m P&Z Mtg (Council Chambers) 9 10 1 11 12 13 14 15 7:00pm 10:30p m CC Mtg 'n (Chambers) Ln rn v 0 16 17 18 19 20 21 22 6:00pm 9:30pm 12:00pm 2:0013 P&tZ WS m PACAB N (Chambers) Work Session (Chambers) U 0 23 24 25 26 27 28 29 �13-QQpM HOLIDAY-Office: 7:00pm 10:30p m CC Mtg (Chambers) m , N u v 30 31 Jan 1, 19 2 3 4 5 Ln m Council Calendar 3 10/16/2018 4:19 PM 140 J���� 2019 O�� January 2019 February 2019 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 :2 3 4 5 1 6 7 8 9101112 3 4 5 6 7 '8 9 13 14 15 16 17 18 19 ' 10 11"12 13 14 15 16 20,21 22 23.24 25 26 17 18 19 20 21 22 23 2728 29 30 31 2425 26 27 28 Sun Mon Tue Wed Thu Fri Sat Dec 30 31 Jan 1, 19 2 3 4 5 7:O0pm 10:30p 12:00pm 2:00p m P&Z Mtg m PACAB Ln (Council Mtg o Chambers) o . rn v v 6 7 8 9 10 11 12 4:00pm 4:30pm SET employee 04 meeting lunch(Fire S 4*00pm 4:30pm SET Lunch& Meeting (Training,roo 13 14 15 16 17 18 19 7:00pm 10:30p 6:00pm 9:30pm 12:00pm 2:00p m CC Mtg _ P&Z WS m PACAB (Chambers) (Chambers) Work Session (Chambers) M 6:30pm 10:00p C: mHPMtg (Chambers) 20 . 21 22 23 24 25 26 �o N i O N C M 27 28 29 30 31 Feb 1 2 7:00pm 10:30p m CC Mtg N (Chambers) a, N C f0 - Council Calendar 4 10/16/2018 4:19 PM 141