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Home My WebLink About05102021 City Council Packet Monday, May 10, 2021 City Council ChambersBeginning at 7:00 p.m. PUBLIC NOTICE TEMPORARY PROCESS FOR CITIZEN COMMENTS & PUBLIC HEARING TESTIMONY AT MAY 10, 2021 SEWARD CITY COUNCIL MEETING The Seward City Council will hold a RegularMeeting on Monday, May 10, 2021. Because the City of Seward is currently experiencing a declared public health emergencydue to Coronavirus Disease 2019 (COVID-19), alternate methods forproviding Citizen Comments and Public Hearing Testimony had been created. You can attend meetings virtuallyin the following ways, or you may attend the meetings in person. We simply request that you wear a mask and stay six feet apart from anyone who is not in your household or your social distancing bubble. How To Submit Your CITIZEN COMMENTS 1.Email your WRITTEN comments to clerk@cityofseward.netno later than 2:00 p.m. on Monday, May 10, 2021. Identify whether you want your comments READ ALOUD at the meeting or EMAILED to council upon receipt.In response to your email, you should expect to receive a verification email from the clerk confirming the method of delivery –if you do not receive this email, please call the clerk at 224-4045. Comments requested to be read aloudwill be delivered verballyto council by the City Clerk at the appropriate time duringthe meeting. 2.If you wish to be called onthe telephoneduring the meeting to provide your comments TELEPHONICALLY, send an email request tothe City Clerk along with your contact information to clerk@cityofseward.net, including your full name and the telephone number you wish to have called. The clerk must receive your request no later than 2:00 p.m. on Monday, May 10, 2021. Identify whether you wish to be called during the FIRST orSECOND citizen comment period, or both. If you wish to be contacted for the first Citizen Comment period, please be prepared to answer your phone starting at 7:00 p.m. If you wish to be contacted for the second Citizen Comment period, there is no estimate of time to expect the call. In response to your email, you should expect to receive a verification email from the clerk – if you do not receive this email, please call the clerk at 224-4045. All Citizen Comments will be timed and limited to three minutes (first period) or five minutes (second period).Public hearing items are limited to five (5) minutes each. The telephone number will be called ONE time; if there is no answer, the clerk will move on to the next citizen. How To VirtuallyATTEND The Meeting 1.The meeting will be Live Streamed on the city’s YouTube page. Log onto YouTube and type “City of Seward Alaska” into the search bar. 2.Listen on the radio. Tune to KIBH-FM 91.7 3.Watch on television. Tune into GCI Cable Channel 9. 1 May 10, 2021 7:00 p.m. Council Chambers Christy Terry 1.CALL TO ORDER Mayor Term Expires 2022 2.PLEDGE OF ALLEGIANCE Tony Baclaan 3.ROLL CALL Vice Mayor Term Expires 2022 4.CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING \[Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes Sue McClure per speaker and 36 minutes total time for this agenda item.\] Council Member Term Expires 2023 5.APPROVAL OF AGENDA AND CONSENT AGENDA \[Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Sharyl Seese Agenda items are not considered separately unless a council member so requests. Council Member In the event of such a request, the item is returned to the Regular Agenda\] Term Expires 2021 6.SPECIAL ORDERS, PRESENTATIONS AND REPORTS John Osenga Council MemberA.Proclamations and Awards Term Expires 2021 1.BuildingSafetyMonth………………………………..Pg. 4 2.Harbor Opening Weekend andBlessing of the Fleet Liz DeMossMermaid Festival……………………………………..Pg. 6 Council Member3.Arbor Day…………………………………………….Pg. 7 Term Expires 2023 B.Borough Assembly Report Ristine Casagranda Council MemberC.CityManagerReport……………………………………..Pg. 8 Term Expires 2022 D.City Attorney Report…………………………………….Pg. 20 E.Other Reports and Announcements – None Norm RegisF.Presentations \[Presentations are limited to ten minutes each, excluding Q&A, and are limited to two per meeting unless increased by council.\] Acting City Manager 1.Right-Of-Way Clearing –Seward MP 18 to MP 23 by Rob Montgomery………………………………………...Pg. 22 Brenda Ballou City Clerk Brooks Chandler City Attorney City of Seward, Alaska Council Agenda May 10, 2021 Page 1 2 7.PUBLIC HEARINGS– None 8.UNFINISHED BUSINESS A.Items for Reconsideration 1.Resolution 2021-053, Approving The Renaming Of Dairy Hill Lane To Chamberlin Road Located North And West Of The Seward Lagoon, In The Cliff Addition To Seward Townsite…………………………………………………………………Pg. 25 9.NEW BUSINESS A.Resolutions 1.Resolution 2021-056, Authorizing The City Manager To Enter Into A Contract With Kendall Automotive For The Purchase Of One Model Year 2021 Transit-250 Cargo AWD Medium Roof Van 130” WB Base With An Extra Set Of Winter Tires And Rims With Sensors With The Cost Not To Exceed $41,160 And To Professionally Equip The Vehicle With New Police Safety Equipment, Radios, And Custom Decals With The TotalCost Not To Exceed $49,534.96, And Appropriating Funds……Pg. 32 *2.Resolution 2021-057, Authorizing The City Manager To Enter Into An Agreement For Up to 18 Months With RSR Contracting, LLC For Transmission Right-Of-Way Clearing Work, With The Contract Based Upon A Per-Mile Cost Not To Exceed $500,000 Over TheDesignated Period, And Appropriating Funds………………Pg. 46 3.Resolution 2021-058, Authorizing The City Manager To Establish Initial Funding For The Developer Reimbursement Program To Fulfill An Application Submitted By Phil Zimmerman For TheGatewaySubdivision, And Appropriating Funds………….Pg. 53 B.Other New Business Items *1.ApprovaloftheApril 26, 2021 City CouncilRegularMeetingMinutes………….Pg. 57 *2.ApprovaloftheApril30, 2021 City CouncilSpecial Meeting Minutes…………..Pg. 67 *3.Non-objection to the renewal of the liquor license for Gene’s Place –Beverage Dispensary– Tourism #4696……………………………………………………....Pg. 70 *4.Non-objection to the renewal of the liquor license for The Cookery – Restaurant/Eating Place– Public Convenience #5400…………………………….Pg. 84 5.Discusstheforensicaudit………………………………………………………….Pg. 97 6.Schedulea work session to discuss theDeveloperReimbursementProgram…….Pg. 118 10.INFORMATIONAL ITEMS AND REPORTS\[No Action Required\] A.LetterfromtheNewSuperintendentof Kenai Fjords NationalPark……………Pg. 119 11.CITIZEN COMMENTS\[There is no sign in for this comment period. Time is limited to five (5) minutes per speaker.\] 12.COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS City of Seward, Alaska Council Agenda May 10, 2021 Page 2 3 PROCLAMATION WHEREAS,Seward, Alaska is committed to recognizing that our growth and strength depends on the safety and economic value of the homes, buildings and infrastructure that serve our citizens, both in everyday life and in times of disaster; and WHEREAS,our confidence in the resilience of these buildings that make up our community is achieved through the devotion of vigilant guardians - building safety and fire prevention officials, architects, engineers, builders, tradespeople, design professionals, laborers, plumbers and others in the construction industry – who work year-round to ensure the safe construction of buildings; and WHEREAS,these guardians are dedicated members of the International Code Council, a nonprofit that brings together local, state and federal officials that are experts in the built environment to create and implement the highest-quality codes to protect us in the buildings where we live, learn, work, play; and WHEREAS,our nation benefits economically and technologically from using the International Codes that are developed by a national, voluntary consensus codes and standards developing organization, our government is able to avoid the high cost and complexity of developing and maintaining these codes, which are the most widely adopted buildingsafety and fire prevention codes in the world; and WHEREAS,these modern building codes include safeguards to protect the public from hazards such as hurricanes, snowstorms, tornadoes, wildland fires, floods and earthquakes; and WHEREAS,Building Safety Month is sponsored by the International Code Council to remind the public about the critical role of our communities’ largely unknown protectors of public safety––our local code officials––who assure us of safe, sustainable, energy efficient and livable buildings that are essential to America’s prosperity; and WHEREAS,“Prevent, Prepare, Protect. Building Codes Save,” the theme for Building Safety Month 2021, encourages all Americans to raise awareness about the importance of safe and resilient construction;fire prevention; disaster mitigation, energy conservation; water safety; training the next generation; and new technologies in the construction industry; and 4 WHEREAS,each year, in observance of Building Safety Month, people all over the world are asked to consider the commitment to improve building safety, resilience,and economic investment at home and in the community, and to acknowledge the essential service provided to all of us by local and state building departments, fire prevention bureaus, and federal agencies in protecting lives and property; and NOW, THEREFORE, I, Christy Terry, Mayor of the Cityof Seward, Alaskado hereby proclaim the month of May 2021 as: BUILDING SAFETY MONTH and do encourage our citizens to join their communities in participation in Building Safety Month activities as found on www.iccsafe.org. th Dated the 10 Day of May, 2021 THE CITY OF SEWARD, ALASKA ________________________________ Christy Terry, Mayor 5 6 7 CITY OF SEWARD Norm Regis P.O. BOX 167 Ph: (907) 224-4047 SEWARD, AK 9966 Fax: (907) 224-4038 CITY MANAGER’S REPORT May 10, 2021 The following purchase orders between $5,000 and $30,000 have been approved by the City Manager since the last council meeting: Date DepartmentDescription Amount Public $5,700.00 Works Streets Crack Sealant 4/20/2021 Public Street Paint for roads, crosswalks, sidewalks, $5,800.00 4/20/2021 Works etc. 4/20/2021 Library Install new flex lines and flow control valves $6,600.00 2021 VFA grant items for award – RES $7,086.02 4/22/2021 Fire 2021-039 4/27/2021 Electric 2021 construction season restock $5,800.00 4/27/2021 Electric2021 construction season restock $10,430.00 Urgent- water maintenance and repair cell $17,900.00 4/27/2021 Water package OSEC 24ppd 4/27/2021 Electric Purchase order for field engineering services$25,000.00 Unit heater installation in the electric dept. $9,966.00 4/29/2021 Electric warehouse ** Public Works Crack Sealant is for 3 pallets of rubberized sealant to start our annual crack sealing efforts on City maintained roads. The Kenai Peninsula Borough Road Service Area included us with the other peninsula cities in their “Invitation to Bid” for this product. We will also be included for the next bid for a contractor to apply the product on roadways. KPB will do that invitation to bid in May. This is for road pavement cracks in order to prevent further water damage. ** Street Paint for roads (crosswalks, curbs, etc) is the yearly purchase for the street department, and is mostly white street grade paint supplies for crosswalks. ** Water maintenance and repair purchase - the Electrolyzer Cell Package is needed to perform electrolysis to make chlorine that is needed for the water treatment and disinfection processes. The old units are finished and require replacement. ** 2021 Construction season restock – Before every spring/summer, we annually order warehouse supplies that are running low, so that we’re not caught shorthanded when the heavy construction season begins. These supplies include items such as fuses, insulators, poles, wires, etc. Note: There are two items on your list with the same project name “2021 Construction season restock” because we have to work with two different vendors based on the supplies needed. 8 ** Unit Heater installation in the Electric Department Warehouse – This is to install a large heater from the ceiling of the Electric Department warehouse on Sea Lion. The warehouse could use additional heat, and this heater was originally in the power plant is being re-utilized since it is no longer needed in the plant. Three bids were submitted for the work, and we are using the lowest. ** Purchase Order for Field Engineering Services – The Electric Department has historically kept an open purchase order for engineering services with Dryden & Larue because they are regularly working on several projects for Seward. Having a purchase order open for various smaller charges over the year has proven to be a more efficient process for time and work flow. **2021 VFA grant items for award – The grant awarded the Fire Department $4,979.00 for Forestry nozzles, hose and appliances. This equipment will provide further fire protection to the community of Seward. Our match was $1,131 and was taken out of small tools & equipment account #01000-1221-7217-0022. No additional funding was required to be allocated. ** Install new flex lines and flow control valves –One-time expense to install new flex lines and flow control valves in the Museum Secured Storage, both of which have a long history of leaning in the Library & Museum building. The purpose is to mitigate further leaking in this sensitive space that put our museum collections entrusted to our car at risk of damage. The cost has been reduced by including this work in our first scheduled bi-annual preventative maintenance visit according to our service agreement, which was established to maintain our air, oil fired boiler and climate control systems. FINANCE Director: Jennifer Pae Finance is working collaboratively with the public works and electric departments to complete the self-audit of customer actions and will be taking the following actions to ensure the accuracy of customer accounts. Utility Billing Project Outline: 1.Complete the self-audit of water meters, water lines, and electric demand meters a.ETA for electric is 4 months due to manufacturer supply chain issues (7 meters still on order b.Water has 7 out of the total 141 businesses still to be audited and subject to availability of those businesses to have a staff person from the City check the information. 2.Explore installing an electric meter at the Lawing or Dave’s Creek substation. 3.Examine accounts item by item for demand meter usage (threshold is 2,000 kw hours). This will determine whether the account is truly small or general service. 4.Explore switching electric meters to Automated Smart Meters in order to generate better quality data on accounts and provide usage insights. 5.City to provide customers information and resources to have a clearer understanding of how to read and understand their bill. 9 6. Improve internal communications between utility billing finance staff and electric and public works departments. 7. Identify those accounts that need water meters CITY OF SEWARD PERSONNEL TRANSACTIONS Separations: Department: Date of Separation: Finance Director Finance 05/21/2021 New Hires:Department: Date of Hire: Park Maintenance Worker SPRD 04/26/2021 Finance Director Finance 05/24/2021 Available Full Time Positions:Department: Position Status: Patrol Officer RecruitPolice Advertising Since 01/27/2020 Planning Assistant Community Development Advertising Since 03/10/2021 Executive Assistant Harbor Harbor Advertising Since 03/19/2021 DMV Clerk Police Advertising Since 04/05/2021 Sports & Rec Assistant SPRD Advertising Since 04/05/2021 Corrections OfficerPolice Advertising Since 04/12/2021 Accounting Tech II Utility Finance Advertising Since 04/16/2021 Library Program Coordinator Library Advertising Since 04/23/2021 Finance Director Finance Advertising Since 04/28/2021 Available Seasonal Positions: Department:Position Status: Campground Attendant SPRD Advertising Since 3/12/2021 Campground/Park Maintenance SPRD Advertising Since 3/12/2021 Park Maintenance WorkerSPRD Advertising Since 3/12/2021 Seasonal Library Aide Library Advertising Since 4/05/2021 Gardner SPRD Advertising Since 4/19/2021 10 HARBOR Harbormaster: Norm Regis We have currently started lifting vessels for Coast Guard inspections for the 2021 season. water in the harbor will be turned on this week. The We are keeping COVID protocols in mind with public contact in the harbor office and while doing boat lifts. The crew is continuing to clean up the last 2 lots at SMIC. This may take some time due to snow removal, but we are making headway. This will become faster as the summer season approaches. The harbor crew has done several 330-ton boat lifts this week. The harbor office is short one office staff. We have upgraded to the new software and are still working through some minor issues. The harbor office will be closed on Sundays. Any phone messages received on Sundays are being monitored th and responded to by the Sunday harbor crew. Starting May 9, the harbor office will be open seven days a week. The fish cleaning stations will be opened as soon as the water is turned on. Continuing meetings concerning the north east harbor launch ramp. We are at 75% design, and still waiting on the state to appropriate the money that AD&G has received from the feds. A sharps collection bin has been installed near the harbor restrooms. 11 ELECTRIC Director: Rob Montgomery Seward’s Power Supply Contract (Update) – Met with Chugach Electric on April 27 to begin detailed negotiations on Seward’s power supply contract. We expect a working draft of the contract to be completed the week of May 3. In addition to rates, we are discussing support services that Chugach Electric could provide that would help Seward and the Electric Department reduce expenses. We will continue to provide updates as we proceed in the process. The current supply contract with CEA expires in December. Rate Study – As part of our work on the electric department rate study, our rate consultant, Mike Hubbard, and I have conducted three citizen group (6-person volunteer group) meetings and three meetings with the Alaska SeaLife Center management over the past six weeks. The purpose of the meetings was to gather feedback and have candid discussions on potential rate options we might recommend to the Council. The meetings were productive and helpful in preparation for the upcoming rate study work session with council. We appreciate the citizen’s group and the ASLC team sharing their time and feedback with us. Safety Audit (Update) – We received the safety audit report from Don Maynor of the Alaska Power Authority, who visited with our crews and evaluated our facilities earlier in April. Seward Electric Power Operations Supervisor, Pat Domitrovich, has begun to prioritize deficiencies outlined in the report and is working with crews and plant operators to develop action plan to address the deficiencies. We are working with Chugach Electric to include our crew and plant personnel in some of their mandatory training programs. Transformer Testing – Pat Domitrovich and crew/plant personnel are taking oil samples from large transformers in Seward’s substations to determine the condition/deterioration of the transformers. Since the transformers are beyond their service life at nearly 40 years old, these tests will give us some idea of their immediate condition. Because of their age, however, we need to be working toward replacement as expeditiously as possible. Electric Department Facebook Page – Launched a Facebook page for the Electric Department the week of May 3. Some of the ways we will use the page include, posting outage updates, promoting electric department activities, sharing tree trimming schedules, and providing tips on safety and energy conservation. Website Content – Added a new, simpler application for interconnection on the website. Also, added content providing a step-by-step process for interconnecting to Seward’s electric system. We will continue to work on streamlining our operational work in this area as we move forward. Solarize Seward Meeting - Members of our team are participating in a Solarize Seward Zoom meeting on Tuesday, May 4. The meeting is being led by Solarize Seward’s selected vendor, Renewable Energy Systems from Anchorage. We will participate in the meeting and be available to answer questions. Initial work is also underway with a Seward resident who is working with Renewable Energy Systems and who is proceeding with a solar installation at his home. Demand Meters – Followed up with the vendor to get an expected time of arrival. Representative said the deliveries have been running up to 22 weeks based on the slowed supply chain due to COVID-19. This would put us about four months out from receiving our order. In Seward, we have 11 meters still needing to be changed out. 12 PARKS & RECREATION Director: Tyler Florence MISSION Preserve, improve, and promote the city's natural resources, parkland, and recreational opportunities for current and future generations. COVID-19 ADVISORIES AVTEC has closed the gym (aka Student Services Center) to the public until further notice. UTILIZATION: April 16 – April 30 Campground Rentals344 CAMPGROUNDS Seward Parks & Recreation manages 10 campgrounds with over 400 RV and tent sites. Reserve today on https://www.cityofseward.us/departments/parks- Campspot—visit the Campground page for more details: recreation/campgrounds Advance reservation is open for the entire 2021 summer camping season. SPORTS & RECREATION Visit RecDesk to view our current program offerings: https://seward.recdesk.com/Community/Home Upcoming Events 5/01 Super Saturday Cleanup 5/08 Pink Cheeks Triathlon 5/15 Exit Glacier Race 5/22, 6/05 Kayaking w/Kayak Adventures (local discount) Recurring Programs Youth Leadership Council meetings, Tuesday from 5pm – 7pm. Location to be determined. for details. Email Jrutledge@cityofseward.net Adult Co-ed Soccer nights at JP Field, Thursday from 5pm – 7pm. Around the town scavenger hunts. Posted on Parks and Recreation Facebook page every other Wednesday. Complete and receive a prize. Email pictures to jrutledge@cityofseward.net 13 Photo taken at the Kite Festival PUBLIC WORKS Director: Doug Schoessler DIRECTOR: Water Sewer Rate Study is on hold for the new city manager’s input. I am also meeting with some businesses and am collecting a short survey on rate increase effects on their business. Water Meter Inventory will soon begin moving forward with finance to make meter size corrections to customer accounts. STREETS: The street dept is cleaning the sand and debris off the roadways. They are making good progress downtown and will continue working through town. Soon after street sweeping finishes, the crews will start repainting crosswalks and curbs as needed. With the good weather, most gravel roads are holding up well and are graded when necessary. 14 TER/WASTEWATER: WA Lowell Point Lagoon air-supply line repairs will happen soon. The ice is melting, and the contractor will begin work as soon as possible. It is still scheduled to start mid-May. The spring water turn-ons are now complete for the harbor, campgrounds, and RV dump station. We do still have people coming back to town for the summer that are requesting services turned on. SHOP: Snow tire change overs are well underway. Departments are scheduled and the changeovers are going quickly. Spring Cleanup at the Public Works yard made a big difference. We still need to check it all again because there were still some items in the shade that were frozen to the ground. DINGS: BUIL Window Cleaning at City Hall went well. The upper story windows are mostly done with the bucket truck in order to reach them safely. Nice to see again! Swept and washed road downtown. 15 SEWARD LIBRARY & MUSEUM Director: Valarie Kingsland SPECIAL BUILDING REPORT Flex line Repairs for Museum Collection Storage May 10-13 Final repairs to the Secure Storage space will take place the week of May 10th. We expect to move objects st back into Secure Storage shortly after repairs are finished. The Museum will reopen by June 1 to allow our partner organizations, the Resurrection Bay Historical Society and the Seward Community Library Association, time to organize and move their objects back into Secure Storage. I would like to recognize Elana Yanusz, our Curator, and our partner volunteers for coordinating, overseeing and managing collection care, organization and movement during this time when the collections entrusted to the City’s care are at their most vulnerable. LIBRARY & MUSEUM SERVICES Note hours and services are subject to change due to the COVID-19 situation and staff capacity. Visit www.cityofseward.us/libmus for updates. Contact us at 907-224-4082 or email libmus@cityofseward.net. •Library: Tues-Sat, 11am-8pm. •Museum: Temporarily closed for maintenance. •Free WiFi 24/7 outside the building, no password. Walk-in Services •Library browsing & borrowing. •Public access computers (walk in or by appointment to ensure access). •Copy/Fax/Print/Scan •Take Home Craft Kits (limited supply). •Contact us to arrange curbside delivery. Services by Appointment •Passport Acceptance (limited appointment availability; expect long processing delays). •Community Room, Meeting Room, and Research Room use (call or email for details). MUSEUM WINDOW DISPLAY May Artifact of the Month Alaska SeaLife Center Grand Opening Commemorative Vase The May Artifact of the Month is a vase commemorating the Grand Opening of the Alaska Sealife Center on May 2, 1998. The vase was donated by Lee McAnerney, a founding board member of the Center. The Alaska SeaLife Center continues to be a staple attraction in the Seward community and fulfill its mission of generating and sharing scientific knowledge to promote understanding and stewardship of Alaska's marine ecosystems. SUMMER 2021 MOVIE@2 PROGRAM UPDATE Tues-Sat, 2-3pm Begins May 18th We are pleased to announce we have been given permission by the Iditarod Historic Trail Alliance and the Seward Community Library Association to show their movies for our Movie@2 Program this summer! We will show the Iditarod National Historic Trail: A History and Waves Over Seward, daily at 2pm, Tuesday- Saturday with appropriate COVID mitigation. Each movie lasts 25 minutes and will be shown back to back with a suggested donation that is split between the three organizations. We thank the Iditarod Historic Trail 16 liance and the Seward Community Library Association for giving us special permission to show these movies Al to the public! SUMMER READING CHALLENGE FOR ALL AGES 2021 Theme: Reading Colors Your World June 1 - August 7 Registration begins in late May (watch for announcements!) Get ready for another fabulous community-wide Summer Reading Challenge! Last summer’s virtual program for all ages modified to include take-home craft kits was so successful, we’re following the same model this summer. Read for 24 hours this summer! Join this special community wide program for ALL AGES. Our program will include take-home craft kits throughout the summer as we promote participation! Stay tuned for details and announcements or visit our website for information and updates. All Ages Welcome! It won’t ever be too late to join; registration will be accepted through the entire program. There will be three age groups: •Tots (Age 0 - 5) •Child (Age 6 - 17) •Adult (Age 18+) Why Read? Children who read for 21 minutes per day see 1.8 million words each year and have scores on standardized tests in the 90th percentile. A child who is reading for 4.6 minutes per day sees .28 million words each year and scores in the 5th percentile on standardized tests. (Anderson, R. C., P. Wilson, and L. Fielding. Growth in reading and how children spend their time outside of school. Reading Research Quarterly 23: 285–303, www.jstor.org/stable/748043) Thank You to Our Supporters! We appreciate the support of the Alaska State Library and the Seward Community Library Association for our Summer Reading Challenge program! The Alaska State Library provides registration and promotional materials for the iRead program across the state. The Seward Community Library Association donated $1000 to help purchase supplies for the program. 17 FIRE & BUILDING DEPARTMENT: Fire Chief: Clinton Crites Planning for the 2021 ORCA Military & Local responder’s All Hazards drill to be held in Seward on May 18- st 21. This is a full scale all hazards CBRNE-Chemical, Biological, Radioactive, Nuclear, and Explosive exercise that is intended to test and evaluate the operational capability of the emergency management system in an interactive manner. This exercise will serve as an interagency evaluation of interoperability among local stakeholders and spans from the MAT-SU Borough to Seward. During this exercise, the community may see and hear various military, federal, state, and local agencies “responding” to simulated events. Fire & Life Safety Inspections YTD: 159 inspections discovering 286 violations. Emergency Calls year to date: 52 New Building Permits issued YTD: 8 with a total job valuation of $1,155,850 4 days of multi-jurisdictional training with Bear Creek Fire and Lowell Point Fire Departments to improve working relations and develop a water supply procedure so all departments are capable of assisting each other during a fire. th On May 8, we will assist Parks and Rec with traffic control for Pink Cheeks. On that afternoon, we will work collaboratively with the American Red Cross on the Sound the Alarm campaign. We can always use volunteer: If you or someone you know is interested in serving your community, please give us a call at 224-3445 or stop by at one of our trainings on Wednesday evenings at 7:00 pm. 18 PERMIT SAFETY TIPS From Your Building Inspector Do I Need a Permit for My Home Project? Check with your local building department before beginning home improvement projects. Requirements vary, but many building departments require permits for home improvement projects, including electrical, mechanical, structural or plumbing work. As a result of getting a permit, an inspector will check the work. Inspections provide a measure of safety to protect your life and property. Projects That Usually Require Permits Re-roofi Remodeling kitchens or bathrooms Building an addition, including seasonal rooms Building a tall fence If you are planning to make home improvements, contact your local building department to find out what building safety code provisions apply in and if you need a permit. 19 www.buildingsafetymonth.org | #BuildingSafety365 CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP Attorneys At Law Suite 302 911 West Eighth Avenue Anchorage, Alaska 99501 Telephone: (907) 272-8401 Facsimile: (907) 274-3698 bcf@bcfaklaw.com May 4, 2021 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: Status Report Dear City Council: This is our status report covering activity on legal matters worked on during April. Utilities We helped finalize contract language for a right of way clearing project. We advised on procurement procedures for purchase of electricity. Personnel We advised on responding to an employee grievance. Planning Most of the need for legal services this month involved advising on notice and scheduling issues related to the filing of multiple appeals from a Planning Commission decision on a conditional use permit application. Those appeals will be heard by the Board of Adjustment on May 14. We also continued to try and achieve compliance with floodplain permit requirements. We advised on the processing of applications for city contributions to development costs. We revised a draft real estate purchase agreement between the City and Chugachmiut. We advised on termination of a parking agreement. Port and Harbor We advised on existing tariff requirements for payment of passenger fees to the City. 20 Seward City Council May 4, 2021 Page 2 General Matters We advised on adding a tenant to an existing lease. We interpreted lease language requiring payment of a portion of sublease proceeds to the City and helped draft a proposed lease amendment. We reviewed an agreement with the Lowell Point Volunteer Fire Department. We advised on a request for a special meeting. We reviewed a draft material sales agreement. Legal expenses for services in March totaled $6,579. You can expect to receive our next status report by June 8. Very truly yours, CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP By: Brooks W. Chandler 21 Seward Highway – May 10, 2021 Way Clearing - of - Seward Electric Department Right 22 2 way - of - way is between MP 18 and MP 23 - Seward Highway of - – way maintenance is typically $15,000 to $20,000 per mile when regularly maintained. Right-of- Recently completed a Request for Proposal for rightclearing along transmission line corridorsWorst section of rightof the Seward Highway, near Moose PassThe section has not been cleared in 25 years or more andtrees are growing directly into the lines ROW Clearing ooo 23 3 tops are already burned - way will be between two to three times -of- Seward Highway way has not been properly maintained: - – of - way is a danger for people hiking or walking within the -of- way Fortunate that a forest fire did not occur in 2019 when fires were prevalentacross the state o Seward cannot afford to risk another summer without clearing MP 18 to MP 23. The cost to clear the rightmore than routine maintenanceThe rightright-of-And it is a major fire hazard; some treebrown from where they brush against the lines in windy conditions ••• Because the right ROW Clearing o 24 AGENDA STATEMENT Meeting Date: May 10, 2021 From: Jessica Stallard,ActingCity Clerk Agenda Item: Guidelines for Reconsideration BACKGROUND & JUSTIFICATION On April 26, 2021, the Seward City Council failed Resolution 2021-053,Approving The Renaming Of Dairy Hill Lane To Chamberlin Road Located North And West Of The Seward Lagoon, In The Cliff Addition To Seward Townsite. On April 27, 2021, the City Clerk received a written request from Council Member Casagranda to reconsiderthe resolution. Council Member Casagrandavoted on the prevailing side, and submitted the request prior to 5:00 p.m. the following day, and so the request is considered timely. PROCEDURE FOR RECONSIDERATION Seward City Code 2.10.065(e) Reconsideration. A motion to reconsider may be applied to any ordinance, resolution or action of the council and has precedence over all motions except the motion to adjourn. (1)A councilmember may make a motion to reconsider only if: a.The councilmember voted on the prevailing side on the question to be reconsidered; b.The councilmember makes the motion to reconsider on the same day and at the same meeting at which the vote to be reconsidered was taken; or c.The councilmember files with the clerk not later than 5:00 p.m. on thefirst city business day following the day on which the vote was taken a notice of intent to reconsider and then makes the motion to reconsider at the next regular council meeting. The councilmember may file by telephone provided that the notice of intent to reconsider is signed before the motion is considered. (2)A motion forreconsiderationrequires a two-thirds vote to carry. (3)For the purposes of this section, a council meeting which is recessed and reconvened on a different day shall constitute one meeting. The reconvened session of such a meeting shall not constitute the next regular council meeting as that term is used in this section. (4)Only one motion to reconsider shall be entertained on any ordinance, resolution or other action even if thecouncil overturns the original action. If a motion to reconsider a particular ordinance, resolution or other action fails, a second motion to reconsider the same action shall not be in order. (5)Actions which may not be reconsidered.The following motions may not be reconsidered: a.A motion which can be renewed within a reasonable time; b.An affirmative vote whose provisions have been partly carried out; 25 c. An affirmative vote in the nature of a contract when the party to the contract has been notified of the outcome; d. Any vote which has caused something to be done which it is impossible to undo; e. A vote on a motion to reconsider; or f. When practically the same result can be obtained by some other parliamentary motion. (Ord. 482, § 1(part),1980; Ord. 93-14) GUIDELINES 1.Motion to Reconsider 2.Second 3.Discussion is allowed (on the Motion to Reconsider) 4.Vote must pass by 2/3 If the reconsideration is approved, the ordinancewill go back on the floor in its last state prior to the final vote on the main motion. It can then be amended. If the reconsideration fails, the ordinancestands. 2/3 Vote Chart 7 council = 5 votes 6 council = 4 votes 5 council = 4 votes 4 council = 3 votes 26 27 Sponsored by:Regis Failed:April 26, 2021 Reconsider:May 10, 2021 CITY OF SEWARD, ALASKA RESOLUTION 2021-053 A RESOLUTION OF THE CITY COUNCILOF THE CITY OF SEWARD, ALASKA, APPROVING THE RENAMING OF DAIRY HILL LANE TO CHAMBERLIN ROAD LOCATED NORTH AND WEST OF THE SEWARD LAGOON, IN THE CLIFF ADDITION TO SEWARD TOWNSITE WHEREAS,on February 9, 2021,Steven C. Liererpetitioned the Community Development Department requesting that Dairy Hill Lane be renamed and merged with Chamberlin Road; and WHEREAS,Dairy Hill Lane runs from its intersection with the Seward Highway to the first curve near the top of the hill west of the Seward Lagoon; and WHEREAS,Dairy Hill Lane was officially named by Council Resolution 93-032; and WHEREAS, Dairy Hill Lane turns into Chamberlin Road where a portion of U.S. Survey 241 meets Cliff Addition to Seward Townsite; and WHEREAS, in order to alleviate confusion with addressing, and ensure prompt emergency services to the area, there is a need to eliminate Dairy Hill Lane;and WHEREAS,City Council Resolution 85-10 established a street-naming and numbering system to provide a standardapproach to the naming and numbering of streets within the City limits; and WHEREAS,the Chamberlin Road recommendation meets all sections of the Resolution 85-10 Street Naming & System; and WHEREAS, the official naming of any drive surface within the City must be designated by a platting action or a resolution of the City Council; and WHEREAS, on April 6, 2021,Planning and Zoning approved Resolution 2021-010 recommending that City Council approve the name change from Dairy Hill Lane to Chamberlin Road. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Manager is hereby authorized to approve the official renaming of Dairy 28 CITY OF SEWARD, ALASKA RESOLUTION 2021-053 ___________________________ Hill Lane to Chamberlin Road. Section 2.This resolution shall take effect immediatelyupon adoption. th SED AND APPROVED by the City Council of the City of Seward, Alaska, this 10 PAS day ofMay, 2021. THE CITY OF SEWARD, ALASKA Christy Terry, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: ______________________ Brenda J. Ballou,MMC City Clerk ity Seal) (C 29 30 31 Sponsored by:Regis CITY OF SEWARD, ALASKA RESOLUTION 2021-056 A RESOLUTION OF THE CITY COUNCILOF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH KENDALL AUTOMOTIVEFOR THE PURCHASE OF ONEMODEL YEAR 2021 TRANSIT-250 CARGO AWD MEDIUM ROOF VAN 130” WB BASE WITH AN EXTRA SET OF WINTER TIRES AND RIMS WITH SENSORS WITH THECOST NOT TO EXCEED $41,160, AND TOPROFESSIONALLY EQUIP THE VEHICLE WITH NEW POLICE SAFETY EQUIPMENT, RADIOS AND CUSTOM DECALS WITH THE TOTAL COST NOT-TO-EXCEED $49,534.96, AND APPROPRIATING FUNDS. WH EREAS,the vehicle being replaced isthe 1997 Ford Expedition, vehicle #256, which currently has logged over 126,549 miles; and WHEREAS,the vehicle is showing extreme wear and tear both mechanically as well as in the body of the vehicle; and WHEREAS,the vehicle will often not start or run well, and the doors do not lock. In the cold months, the locks will seize up making it impossible to open the back doors to load animals; and WHEREAS,the vehicle was never intended to be an animal control vehicle. It is not properly equipped with safety equipment or kennels, and presents great risk to both the animal control officer and the animals being transported; and WHEREAS,in the event of an emergency evacuation, there is very limited space and no reliability that the vehicle will start to move the animals and necessary supplies housed at the shelter; and WHEREAS,the vehicle must be professionally equipped with certain police equipment, including: a police radio, safety working lights, a spotlight for low visibility searches, and graphic installation in the amount of $1,960; and WHEREAS,the vehicle must be professionally equipped with updated police radios and necessary equipment through Motorola Solutions not to exceed $6,000; and WH EREAS, the city has an opportunity to purchase the Animal Controlvehicle under the same contract terms that were offered to the State of Alaska by Kendall Fordthrough a competitive bid process; and WHE REAS, the City Council has determined that the public interest would be best served by not requiring competitive bidsand makes the following findings: 32 CITY OF SEWARD, ALASKA RESOLUTION 2021-056 ___________________________ 1.Seward City Code Section 6.10.120 B., provides that the city may utilize competitive bids obtained by other governmental units; and 2.Kendall Fordin Anchorage, Alaskahas been awarded a contract to providepatrol vehicles for the State of Alaska and the City of Seward has an opportunity to purchase patrol vehicles at a bid amount not to exceed $41,160. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Manager is hereby authorized toenter into an agreement with Kendall Automotive, in Anchorage, Alaska, for the purchase of one new animal controlpatrol vehicle as part of the State of Alaska Police Vehicle Contract,and the necessary accompanying equipment and installationfor an amount not to exceed, $49,534.96 6.10.120(B). Section 2.Funding in the amount of $49,534.96 is hereby appropriated from Motor Pool Fund undesignated reserves account no. 03000-000-3400 to Capital Equipment account no. 03000-1212-8103. Section 3. This resolution shall take effect immediatelyupon adoption. th PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10 day ofMay, 2021. THE CITY OF SEWARD, ALASKA Christy Terry, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: ______________________ Brenda J. Ballou,MMC City Clerk (City Seal) 33 34 35 36 CITYOFSEWARD 2-11-2021 PRICE$41,160 SPECIALORDER EXTRASETSTUDDEDTIRES,WHEELS&SENSORS 2021 Transit-250 Cargo AWD Medium Roof Van 130" WB Base (R2C) Price Level: 115 Client Proposal Prepared by: Ray Marcum Office: 907-793-8213 Date: 02/10/2021 Kendall Ford | 431 Unga street , Anchoreage, AK, 99501 Office: 907-793-8213 37 1 Prepared by: Ray Marcum 02/10/2021 Kendall Ford | 431 Unga street Anchoreage AK | 99501 2021 Transit-250 Cargo AWD Medium Roof Van 130" WB Base (R2C) Price Level: 115 As Configured Vehicle CodeDescription Base Vehicle R2CBase Vehicle Price (R2C) Packages 101AOrder Code 101A Includes: - Engine: 3.5L PFDi V6 Flex-Fuel Includes port injection. - Transmission: 10-Spd Automatic w/OD & SelectShift Includes auxiliary transmission oil cooler. - 3.73 Limited-Slip Axle Ratio - GVWR: 9,070 lbs - Tires: 235/65R16C 121/119 R AS BSW - Wheels: 16" Silver Steel w/Exposed Lug Nuts - Dark Palazzo Gray Vinyl Bucket Seats Includes 2-way manual driver seat, 2-way manual passenger seat and driver armrest. - Vinyl Front Bucket Seats - Radio: AM/FM Stereo Includes 4.0" multi-function display, Bluetooth, dual USB ports and 4 speakers (front). Powertrain 998Engine: 3.5L PFDi V6 Flex-Fuel Includes port injection. 44UTransmission: 10-Spd Automatic w/OD & SelectShift Includes auxiliary transmission oil cooler. X7L3.73 Limited-Slip Axle Ratio STDGVGVWR: 9,070 lbs Wheels & Tires STDTRTires: 235/65R16C 121/119 R AS BSW STDWLWheels: 16" Silver Steel w/Exposed Lug Nuts Seats & Seat Trim 21GDark Palazzo Gray Vinyl Bucket Seats Includes 2-way manual driver seat, 2-way manual passenger seat and driver armrest. VVinyl Front Bucket Seats Other Options Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer’s computer system. See 38 salesperson for the most current information. 2 Prepared by: Ray Marcum 02/10/2021 Kendall Ford | 431 Unga street Anchoreage AK | 99501 2021 Transit-250 Cargo AWD Medium Roof Van 130" WB Base (R2C) Price Level: 115 As Configured Vehicle (cont'd) CodeDescription PAINTMonotone Paint Application 130WB130" Wheelbase 17BFixed Rear Cargo Door & Passenger-Side Glass Includes: - Rear-Window Defroster - Rearview Mirror 15FFull Rear Compartment Lighting Includes cargo area LED lights at C-pillar, D-pillar and LED switch. In 21MY, the number of standard cargo area lights for cargo van has been reduced and 2 LED lights at the C-Pillar are now standard. 47TLockable Door Bulkhead w/Window The bulkhead is located behind the driver and passenger seats in the cargo van, and separates them from the cargo area. 16EFront & Rear Vinyl Floor Covering Includes wheel well liners. 58URadio: AM/FM Stereo Includes 4.0" multi-function display, Bluetooth, dual USB ports and 4 speakers (front). 41HEngine Block Heater (400W rating). Recommended when minimum temperature is 10 degrees F or below. 153Front License Plate Bracket Standard in states requiring two license plates and optional in all other states. Emissions 42550-State Emissions System Interior Color VK_03Dark Palazzo Gray Exterior Color YZ_01Oxford White Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer’s computer system. See 39 salesperson for the most current information. 3 40 41 42 43 44 45 Sponsored by:Regis CITY OF SEWARD, ALASKA RESOLUTION 2021-057 A RESOLUTION OF THE CITY COUNCILOF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT FOR UP TO 18 MONTHS WITH RSR CONTRACTING, LLC FOR TRANSMISSION RIGHT-OF-WAY CLEARING WORK, WITH THE CONTRACT BASED UPON A PER-MILE COST NOT TO EXCEED $500,000 OVER THE DESIGNATED PERIOD, AND APPROPRIATING FUNDS. WHEREAS,the Electric Department has requested up to $500,000 for a contract to have targeted sections of its transmission line right-of-way cleared for service reliability and public safety purposes; and WHEREAS,the contract will be for 18 months beginning in May2021 and ending October 2022 or until assigned work is completed, whichever comes first; and WHEREAS,the Electric Department completed a Request for Proposal and selected RSR Contracting, LLC from six submitted bids; and WHEREAS,RSR Contracting, LLCreceived the highest score in the grading process among bidders based on price, experience, quality of work, qualifications, references, and additional right-of-way maintenance services, and WHEREAS,some sections of Seward Electric’s transmission right-of-way are in extremely poor condition with some trees in danger of starting a forest fire hazard, as well as other public safety concerns; and WHEREAS,the targeted right-of-way sections in their existing condition also present considerable servicereliability issues. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Manager is hereby authorized to enter into a contract with RSR Contracting, LLC for a total amount not-to-exceed $500,000 over an 18-month period for right- of-way clearing work along transmission line corridors. Section 2. Funding in the amount of $350,000 is hereby appropriated in the 2021 budget from Electric reserves account no. 15000-0000-3400 to contracted services account no. 15000-3004-7009. Section 3. The 2022 budget will include $150,000 in contracted services account no. 15000-3004-7009 for the remainder of the contract. 46 47 48 49 50 51 52 Sponsored by:Regis CITY OF SEWARD, ALASKA RESOLUTION 2021-058 A RESOLUTION OF THE CITY COUNCILOF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ESTABLISH INITIAL FUNDING FOR THE DEVELOPER REIMBURSEMENT PROGRAM TO FULFILL AN APPLICATION SUBMITTED BY PHIL ZIMMERMAN FOR THE GATEWAY SUBDIVISION, AND APPROPRIATING FUNDS. EREAS,City Council adopted Seward City Code (SCC) Chapter 5.22, which WH authorizes Council to reimburse up to 50% of developer installation costs resulting from the installation of public utilities in improvement districts; and WHEREAS,SCC 5.22.030 requiresdevelopers seeking reimbursement under this program to submit an application; and WHEREAS, the Developer Reimbursement and Incentive Programapplication was approved by City Council through Resolution 2019-083; and WHEREAS,the City received an application from Phil Zimmerman on March 3, 2021 for his development in the Gateway Subdivision; and WHEREAS,upon implementation of the program application, no funding mechanism was established; and WHEREAS,utility development costs incurred by Mr. Zimmerman total $427,971.08; and WHEREAS,a 50% reimbursement requires funding of at least $213,985.54. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City Manager is hereby authorized totransfer and appropriate funds in the amount of $214,000 from General Fund Reserves account no. 01000-0000-3710- 0000-80071 to the Developer Reimbursement Fund account no. 80071-0000-7811. Section 2.This resolution shall take effect immediately upon adoption. th PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10 day ofMay, 2021. 53 54 55 56 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021Volume 41, Page CALL TO ORDER TheApril 26, 2021regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Christy Terry. OPENING CEREMONY Police Chief Alan Nickellled the Pledge of Allegiance to the flag. ROLL CALL There were present: Christy Terry presiding and Tony Baclaan Sue McClure Sharyl SeeseJohn Osenga Liz DeMoss Ristine Casagranda comprising a quorum of the Council; and Norm Regis,ActingCity Manager Jessica Stallard,Acting City Clerk Excused – None Absent – None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING TheCityofSewardiscurrentlyexperiencing a declaredpublichealthemergencyduetoCoronavirus Disease 2019 (COVID-19), so alternate methods for providing Citizen Comments were created. Unless otherwise noted, the followingCitizenCommentsweresubmittedin advance andreadinto the record by the City Clerk: Carol Griswold said (telephonically) that she was opposed to renaming Dairy Hill Lane to Chamberlin Road.Itdid not meet the street naming and numbering systemestablished in Council Resolution 1985-10. She believed both names were appropriate as they honored history but Dairy Hill Lane was more appropriate and helpful to emergency responders. Harold Faust was opposed to renaming Dairy Hill Lane to Chamberlin Road. He said the confusion caused by Dairy Hill Lane intersecting the highway at the north and turning into Chamberlin Road above the lagoon could be addressed with signage. Cheryl Seesewas opposed to renaming Dairy Hill Laneto Chamberlin Road. She said Dairy Hill held an important place in Seward’s early history. 57 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021Volume 41, Page APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Baclaan/McClure) Approval of Agenda and Consent Agenda Terry added Resolutions 2021-047 and 2021-055 to the consent agenda. DeMoss pulled Resolution 2021-053 from the consent agenda. Osenga pulled Resolution 2021-054 from the consent agenda. Casagranda pulled Resolutions 2021-048, 2021-050, and 2021-051 from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2021-047, Authorizing The Participation In A Proposed Refinancing By The Alaska Municipal Bond Bank Of Its General Obligation Bonds That Provided Funds To Purchase The General Obligation Library/Museum Bonds, 2011 Series A Of The City of Seward, Under A Loan Agreement Between The City Of Seward And The Alaska Municipal Bond Bank, And Authorizing The City Manager To Approve A Revised Schedule Of Principal And Interest Payments On The City Of Seward’s 2011A Bonds, In Accordance With The Loan Agreement, If The Bond Bank Successfully Refinances Its Bonds. Resolution 2021-049, Authorizing The City Manager To Purchase A Portable Restroom Skid Unit For Williams Park From Portable Restroom Trailers, LLC In The Amount Of $89,775 And Appropriating Funds. Resolution 2021-052, Authorizing The City Manager To Sign The Cooperative Agreement Between The City Of Seward Fire Department And Kenai Peninsula Borough For Eastern Peninsula Highway Emergency Service Area (EPHESA). Resolution 2021-055, Amending The Port & Harbor Tariff Regulations To Increase Vessel Storage Rates In The Seward Marine Industrial Center Yard As Of January 1, 2022. Approval of the April 12, 2021 City Council Regular Meeting Minutes. Non-objection to the renewal of the liquor license for Tony’s Bar – Beverage Dispensary #1153. Non-objection to the renewal of the liquor license for Tony’s Liquor Store –Package Store #1154. Non-objection to the renewal of the liquor license for Oaken Keg #2728 – Package Store #4334. 58 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021Volume 41, Page SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Recognizing the Retirement of Melody Moline Municipal Clerks Week Wildfire Community Preparedness Day Historic Preservation Month City ManagerReport. Acting City ManagerNorm Regisreportedthe following purchase orders between $5,000 and $30,000 had been approved by the City Manager since the last council meeting: $7,590 to theLibrary for an annual building automation/mechanical system schedule service agreement; $9,622 to Public Works for a grinder pump replacementfor Lift Station #4; $29,500 toFire for maintenance on Fire Vessel Jon Foster Unit #364; and $8,250 to Public Works to replace flatbed deck on vehicle #115. Regis read the following scoring criteria for the Forensic Audit Services Request For Proposals: Depth of Market Experience 20 Past Performance 10 Timeline for Completion 20 Understanding the Work To Be Performed 10 Proposed Cost 40 Total100 Regis read the following scoringcriteria for the Seward Animal Shelter Design Build Request For Proposals: Price 50 Technical 15 Qualifications 15 Schedule 5 Project Management 15 Total100 In response to Casagranda, Regissaid the following changes had beenmade to the scoring criteria for the Forensic Audit: Proposed Cost was changed from 30% to 40% and Understanding the Work To Be Performed was changed from 20% to 10%. In response to Seese, Regis said the scoring criteria for these bids was not in the council packet. In response to Terry, Regis said the forensic auditrequest for proposals would be opened on April 28, 2021 and the scoring criteria was not currently listed in the request for proposals. 59 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021 Volume 41, Page In response to Osenga, Assistant City Manager Stephen Sowellsaid the intention of changing the scoring criteria was to reiterate that the clarity on pricing was of high importance. In response to Casagranda, Sowell said a work session on the Capital Improvement Plan (CIP)would be scheduled for May 24, 2021.A survey had been created for council to rank the importance of projects on the Capital Improvement Plan and the responses would be presented to council on May 24, 2021. In response to Terry, Regis said he would bring forwardan agenda statement requesting furtherdirection from council on the Capital Improvement Plan after the May 24, 2021 work session. In response to Baclaan, Regis said that one person from the Police Department had been hired as apart-time Department of Motor Vehicles (DMV) employee and she would begin her training as soon as classes became available. The city was also reaching out to other DMVs in Alaska. In response to DeMoss, Regis said he would look into refilling the plastic bags in the dog waste bag stations. Other Reports and Announcements Chamber of Commerce Report.Jason Bickling saidthe Community Awards were given to: Elle Zernia for Business Site Improvement at Mermaid Grotto,Christy Terry for Business Person of the Year, Lori Landstrom for Service to the Community, and the Seward Community Health Center for the Board of Directors Award. On May 11, 2021, the new chamber website was going live. The Mermaid Festival would be onMay 15, 2021. The Combat Fishing Tournament was scheduled forMay 26, 2021. The Halibut Touranment would be on June 15 –June 30, 2021. Fourth of July weekend festivities were being held on July 2 –July 5, 2021. Mt. Marathon Race would be held onJuly 7, 2021. The Silver Salmon Derby wasAugust 14-22, 2021. Seward Music and Arts Festival would be September 24 - 25, 2021. Businesses were experiencing a shortage of workers, as well as housing for workers. Presentations Alaska Redistricting Board presentation by Peter Torkelson Watch the winning video from the Japanese Consulate’s Contest: submitted by the Japanese students from the 2019 Student Exchange between Obihiro and Seward PUBLIC HEARINGS– None UNFINISHED BUSINESS Items Postponed from Previous Agenda 60 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021 Volume 41, Page Resolution 2021-043, Amending The 2021 Budget To Reflect Mid-Cycle Budget Adjustments, And Appropriating Funds.This resolution was postponed from the April 12, 2021 council meeting. Motion to Amend(Terry/Baclaan)Amend Resolution 2021-043 by adopting the substitute resolution. In response to Terry,DeputyFinance Director Sam Hickoksaidthe bed tax was $673,000 in the 2021 budget and the sales tax was $1,345,983, which was a 25% reduction over the 2019 sales tax rate. With those two changes, the balance was down to $579,856.No other changes were made. In response to Casagranda, Hickok said the net increase was $53,873.Various expenditures were adjusted for a net increase of $122,255. Motion to AmendPassed Unanimous Motion to Amend (Casagranda/Baclaan) Amend Resolution 2021-043 by striking “Revenues are adjusted for a net increase of $53,873” from Section 1 Number 1. In response to Terry, Hickokand Sowell clarified thatwhen the increases and decreases were combined, there would be a $53,873 increase in revenues.Thiswas reflected in Section 1 Number 1 of the substitute resolution. In response to Osenga, Regis said the budget would be brought back before council in November if additional funding was needed. The Motion to Amend was withdrawn. Council suspended the rules to speak to Chamber of Commerce Executive Director Jason Bickling. Jason Bickling said he expected a large number of travelers this year. Even though there would be no cruise ships and there was a limited amount of rental cars available,a large amount of independent travelers were expected. Council went back onthe rules. In response to Seese, Regis said the city manager was listed under increase for expenditures because a budget for the assistant city manager position had been added to this year’s budget. Main Motion Passed Unanimous NEW BUSINESS Resolutions 61 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021Volume 41, Page Resolution 2021-048, Authorizing The City Manager To Purchase A Heavy Duty Volvo EC220EL Crawler Excavator, A Large Tilt-Deck Trailer With The Capacity For Hauling The Excavator, And Various Digging And Trenching Attachments In The Amount Of $288,671 From Construction Machinery, LLC. Motion (Baclaan/Seese)Approve Resolution 2021-048 Electric Utility Manager Rob Montgomery said the electric department would bemore effective during power outages with a large excavator. The current equipment was too small for the electric department’s jobs. Benefits of a large excavatorwere that it could be usedduring the winter months, loanedto Public Works, and it wouldhelp maintain right-of-ways. Itcost $15,000-$20,000 to rent excavators for three months from Anchorage. In response to Casagranda, Regis said the excavator would come out of the electric fund reserves. Montgomery said it would take 8 to 10 months to receive theexcavator after it was ordered because it was a special piece of equipment.The expected life span of the excavator was15-20 years. Motion Passed Unanimous Resolution 2021-050, Authorizing The City Manager To Purchase Portable Restroom Trailers For The Cruise Ship Terminal From Portable Restroom Trailers, LLC In The Amount Of $311,805 And Appropriating Funds. MayorTerry declared a potential conflict of interestbecause she worked for the Alaska Railroad and the intended use of the bathrooms was for the cruise ship and railroad passengers to use them.She passed the gavel to Vice Mayor Baclaan.She did not believe she had a conflict because there was no financial gain to her. Baclaan ruled there was noconflict of interestand returned the gavel. There were no objections. Motion (Baclaan/McClure)Approve Resolution 2021-050 Regis said grant money had been received in 2020 to mitigate COVID-19 at the cruise ship terminal. These bathrooms would belong to the City of Seward. In response to Casagranda,Regis said the City of Seward would not be charged for pumping the toilets. Motion Passed Unanimous Resolution 2021-051, Authorizing The City Manager To Purchase A New Volvo L110H Wheel Loader With Bucket Attachments And A Kodiak LMSC3640 Snowblower From Construction Machinery Industrial, LLC (CMI) To Replace A 1996 Oshkosh Snowblower For A Total Amount Not To Exceed $460,735 Utilizing The Sourcewell RFP Contract #032119-VCE, And Appropriating Funds. 62 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021 Volume 41, Page Motion (Baclaan/McClure)Approve Resolution 2021-051 Public Works Director Doug Schoessler said thesnowblower had outlived its life span. The loader snowblower could be used year-round. The prices of equipment had sky-rocketed since last year. Regis said the equipment was partially budgeted in the motor pool fund for 2020 but due to COVID-19, it had not been ordered yet. In response to Terry, Regis said these funds were coming out of the motor pool reserves and not the general fund. Motion Passed Unanimous Resolution 2021-053, Approving The Renaming Of Dairy Hill Lane To Chamberlin Road Located North And West Of The Seward Lagoon, In The Cliff Addition to Seward Townsite. Motion (Baclaan/McClure)Approve Resolution 2021-053 Community Development Director Jackie Wildesaid Steve Leirer requested the name change from Dairy Hill Lane to Chamberlin Roadand he owned most of the land in this area.Wilde said the name should have been Chamberlin Road where both Chamberlin Road and Dairy Hill Lane were currently located. If the name was changed, then Chamberlin Road would connect down to Second Avenue. The Community Development Department called several home owners in the area to see if the name change would affect their addresses and it would not. The name of the area where Benny Benson Park was located would be the only address change aside from Mr. Leirer’s address. DeMosssaid most Chamberlin Road residents supported this name change but most Dairy Hill Lane residents were strongly opposed to it.McClurewas concerned that the history of Dairy Hill would go awayif the name of Dairy Hill Lane was changed. In response to Osenga, Wildesaid Mr. Leirer requested the name change from Dairy Hill Lane to Chamberlin Road for historical purposes. In response to McClure, Wilde said Council Resolution 1985-10 was renaming streets that didn’t have the ability to be added on to. Motion FailedYes: Osenga, Baclaan, Terry No: Casagranda, DeMoss, Seese, McClure Resolution 2021-054, Recommending City Council Approve The Walkable Mural Application Guidelines And Administrative Policy. Motion (Baclaan/DeMoss) Approve Resolution 2021-054 63 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021 Volume 41, Page Wildesaid Community Developmentworked with Public Works on the guidelines and what would be requiredfor the walkable murals.The walkable mural application would giveanyone the ability to buy or lease a crosswalk for three years for $1,500. In response to Osenga, Wilde said anything within the white lines would be maintained by Public Works. No wording or advertisement would be allowed in the art for the walkable murals. If the applicant failed to maintain their walkable mural, then Public Works would paint over it. The walkable murals would only be allowed in the City of Seward crosswalks. In response to McClure, Wilde said applicants would pick thelocation for their walkable mural.There would be a staff review for the walkable mural applications, but as long as the applicant metthe criteriathat was set in the application, then they would be allowed to move forward with the permitting. Motion Passed Unanimous OtherNew Business Items Schedule a work session for electric rates on May 10, 2021 at 5:30 p.m. Council scheduled a work session for electric rates on May 10, 2021 at 5:30 p.m. Schedule a work session to discuss Capital Improvement Plan (CIP) prioritization. Requested on Monday, May 24, 2021 at 5:00 p.m. Council scheduled a work session on the Capital Improvement Plan for May 24, 2021 at 5:00 p.m. Discuss funding for the Developer Reimbursement Program. Sowell said the Developer Reimbursement Program was created in 2019 with the specific intent of incentivizing residential development, but it was not functionally built to incentivize developers.The program existed in code,but no funding mechanism had been dedicated to it. The city had received two applications for the Developer Reimbursement Program. The total amount needed to refund these two applicants would be $281,000. The development of Harmon’s property had not yet begun. Zimmermanhad already built the Gateway Subdivision. Sowellrecommended pulling funds from the General Funds Reserve for these applicants’ reimbursements and then, replacing the money with the funds received from the city’s sale of Chugachmiut. He requested getting feedback from the public, developers, andthe Chamber of Commerce on this program. Casagranda wondered where council would get the money to reimburse the developers. Sowellsaidno funding would go to the developer until after the reimbursement was paid. This was a reimbursement program, not a credit.He said a municipal land sale could be used to fund a program to incentivize developers. The city manager would bring forward a written memorandum to council fora fully approved application, but he could not do so until funds were available in the program. The city had paid $427,971for Zimmermann’s utilities and $214,000 would be paid back to the city. 64 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021 Volume 41, Page Wildesaid the applications would go from the clerk to the city manager, who would sendthe application to Planning & Zoning for review.The city paid to put the electric utilities in the subdivision through an assessmentdistrict. In response to Seese, Wilde said the city had paid a contractor to do the assessments and no city employees were used during the assessment. In response to Baclaan, Sowell saidonce an application for the Developer Reimbursement Program was complete, then the city had three council meetings to reimburse the developer. Seese wondered if the developer or the city paid for the development of these lots. Wilde said the city paidall of the developer’s invoices once the developer completed the application and assesseda value toeach lot.Wilde said Zimmermann understoodthat the city paid the bills from different funds and he hadthe ability to request 50% of these funds be reimbursed to him.The funds usedcame from the Chugachreimbursement, water and wastewater, and reimbursements from the state.Thetitle of the lots wouldnot be released to Zimmermann. Sowell said Zimmermann purchased the lots and the city paid to put the utilities in. Zimmermannowedthe city $427,000 and once the $427,000 was receivedby the city, council could choose to reimburse him $214,000.Wilde said when Zimmerman sells the lots, he would pay council back. Wilde said in Resolution 2020-006, the funding of $281,043.46came from the Chugachmiut Electric Fund. The funding in the amount of $56,431.54 was taken out of the General Fund and put into the Development Improvement Infrastructure account. Council Resolution 2021-003 was the tax roll. The whole job was $427,000. $45,000 came from water and $45,000 came from wastewater to make up the $90,000 difference. $241,083 was the refund that had been received from Chugachmiut. The original thought was to use the refund from Chugachmiut to fund the Developer Reimbursement Program. Wildesaid Zimmermann had statedthat the lots were off the market because hedidn’t know what to charge for them. DeMoss wondered what incentive the developers would have to sell the land after being reimbursed. Sowell said Zimmermann would start paying 12% interest on the $33,000 for each lot on November 1, 2021. Council directedthe city manager to bring back an actionable item for furtherreview, as well as schedule a work session on the Developer Reimbursement Program and funding at the May 10, 2021 council meeting. INFORMATIONAL ITEMS AND REPORTS March, 2021 City and Providence Financials. City Clerk’s memo verifying the receipt of the Annual Financial Disclosure Statements in a timely manner. Seward Boat Harbor Write-Offs. 65 City of Seward, AlaskaCity Council Meeting Minutes April 26, 2021Volume 41, Page CITIZENCOMMENTS – None COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Regiscongratulated Melody Moline on her retirement. He thanked the public for attending the meeting. He wished DeMoss ahappy birthday.He congratulated JAGon being approved for a $639,712grant for a100-ton grove hydraulic train. Sowellthanked the Port & Commerce Advisory Board and specifically Lynda Paquette for their hard work on the high vessel storage rates resolution. He enjoyed the student exchange video and he had a lot of fond memories of student exchange programs that he had attendedduring his youth. He was excited to be involved in the Seward’s student exchange program. Seese was glad to be back. She thanked everybody for their comments. Casagranda thanked Wildeand Baclaan for their hard work on the walkable mural applications. She was concerned about the lack ofhousing in Seward.She looked forward to working on the Capital Improvement Plan. DeMoss congratulated Terry for winning Business Person of the Year. She thanked Wilde and Baclaan for their hard work on the walkable mural application. She thanked the city manager and assistant city manager for working on the Capital Improvement Plan. Osenga welcomed back Seese. He congratulated Melody Moline on her retirement. He wished DeMoss a happy birthday. He was enjoyingthe summer weather and had enjoyed Seward’s Kite Festival.He enjoyed the student exchange video and he had visited Japan his senior year of high school. McClurewished DeMoss a happy birthday. She congratulated Melody Moline. She was excited that the geese had come back to Seward. She asked everyone to watch out for bicyclists and to continue to be COVID-conscious. Baclaanwished DeMoss a happy birthday. He congratulated Terry on her Business Person of the Year award.He was excited to move forward with the walkable murals. He thanked all boards and commissions. He said Seese was not going to run again and there would be at least one council seat open during this year. Terrythanked Melody Molinefor her hard work. She congratulated Elle Zernia and Lori Landstrom. She saidSeward was open for business.Scott Reierson and Elle Zernia had been interviewed by the Washington Post.She was excited that council was ready to move forward with projects and have hard discussions. She reminded council that they had the ability to schedule special meetings. 66 City of Seward, AlaskaCity Council Special Meeting Minutes April 30, 2021Volume 41, Page CALL TO ORDER TheApril 30, 2021 specialmeeting of the Seward City Council was called to order at 5:30 p.m. by Mayor Christy Terry. OPENING CEREMONY Acting City ManagerNorm Regisled the Pledge of Allegiance to the flag. ROLL CALL There were present: Christy Terry presiding and Tony Baclaan Sue McClure Sharyl SeeseJohn Osenga Liz DeMoss Ristine Casagranda comprising a quorum of the Council; and Norm Regis, ActingCity Manager Jessica Stallard, ActingCity Clerk Excused – Baclaan, McClure, Osenga Absent – None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING TheCityofSewardiscurrentlyexperiencing a declaredpublichealthemergencyduetoCoronavirus Disease 2019 (COVID-19), so alternate methods for providing Citizen Comments were created. Unless otherwise noted, the followingCitizenCommentsweresubmittedin advance andreadinto the record by the City Clerk: Darryl Schaefermeyer said this meeting violated Seward City Code 3.7 “Restrictions of power of council”. Anthony Baclaan apologized thathe could not attend tonight’s meeting. He felt strongly that the city should hire an experienced full-time CPA. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Casagranda/Seese) Approval of Agenda and Consent Agenda 67 City of Seward, AlaskaCity Council Special Meeting Minutes April 30, 2021Volume 41, Page Motion to Amend (Casagranda/DeMoss) Amend the title of the discussion to read, “Discuss the recent vacancy of the City of Seward Finance Director position and give administration direction to hire a contracted CPA”. Motion to Amend PassedUnanimous Main Motion Passed Unanimous There were no consent agenda items. Other New Business Discuss the recent vacancy of the City of Seward Finance Director position and give administration direction on filling the position.Discuss the recent vacancy of the City of Seward Finance Director position and give administration direction to hire a contracted CPA. Motion (Casagranda/DeMoss) Direct the city manager to go out to Request for Proposals (RFP) no later than May 7, 2021 to hirea contracted Certified Public Accountant (CPA) to work full time and on site for 6 months with an hourly rate not to exceed$70/hr. and to begin working no later than June 11, 2021. RFP to close on May 28, 2021. Casagranda said the City of Seward had been operating without a full time, qualified finance directorfor 18 months. She wanted the city to hire a contracted CPA for 6 months to support the Interim Finance Director. Terrywas concerned that having a deadline for hiring a CPA would hinder the city’s options. Regis said he had hired Melody Moline as the Interim Finance Directorand he was working with GovHR to hire a permanent Finance Director. There were fiveopen Finance positions in the State of Alaska that were not being filled. He did not agreewith going out to RFP to hire personnel. Terry clarified that directing the city manager to hire a CPA did not violate Section 3.7 of the City Charter because council was not telling the city manager who to hire or fire. They were asking the city manager to hire a CPA full time on site for six months,but the city manager would decide who was hired. Terry said the city attorney had been made aware of this meeting. Assistant City Manager Stephen Sowellsaid there were not very many qualified CPAs available. He suggested that the rate of pay and the timeline be evaluated. 68 City of Seward, AlaskaCity Council Special Meeting Minutes April 30, 2021Volume 41, Page Motion to Amend (Casagranda/DeMoss) Replace the June 11, 2021 start date with July 1, 2021. Main to Amend Passed Unanimous In response to Regis, Casagranda said the CPA would be contracted for six months to work alongside the Finance Director. She reiterated that council was not hiring a Finance Director. They were directing the city manager to hire a qualified CPA to assist city staff. In response to Casagranda, Regis said the scoring criteria for this RFP would be read at the May 10, 2021 council meeting. Main Motion Passed Unanimous Citizen Comments –None COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Terrywas excited to have Melody Moline as the Interim Finance Director.She said council wanted to make sure everyone had the tools and support that they needed to ensure that everything was taken care of at the city. ADJOURNMENT The meeting was adjourned at 6:00 p.m. ________________________________________________________________________ Jessica Stallard, CMC Christy Terry Acting City ClerkMayor (City Seal) 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 Office of the Borough Clerk Office of the Borough Clerk 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Johni Blankenship, MMC Borough Clerk April 22, 2021 Sent via email: clerk@cityofseward.net Seward City Hall City of Seward RE: Non-Objection of Application Licensee/Applicant : The Cookery, LLC Business Name : Cookery, The License Type : Restaurant/Eating Places - Public Convenience License Location : 209 5th Avenue, Seward, AK 99664, City of Seward License No. : 5400 Application Type : License Renewal Dear Ms. Ballou, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/ts Encl. cc: kevin@cookeryseward.com; clerk@cityofseward.net; MBerg@kpb.us; SNess@kpb.us; MJenkins@kpb.us 96 Agenda Statement Meeting Date: May 10, 2021 To:City Council From: Norm Regis, Acting City Manager Agenda Item:Discuss the bids for forensic audit services BACKGROUND & JUSTIFICATION: th ril 7 On Ap, the City of Seward issued a Request for Proposal for Forensic Audit Services. Three st bids were received by the deadline of April 21. The following firms submitted bids: Marcum, LLP, Brandi Marsh, PC, and Green Forensic Accounting Solutions, LLP. The scoring team met and identified Green Forensic Accounting, LLP as the recommended bidder. RECOMMENDATION: City Council discuss the recommended bid for forensic audit services 97 Proposal for ForensicAudit Services City of Seward ____________________________________________________________________________________________________________ A PRIL 16,2021 S UBMITTED BY C RAIG L.G REENE,CPA/CFF,CFE,MAFF,MCJ 200 W. J ACKSON B OULEVARD S UITE 1300 C HICAGO I LLINOIS 60606 T EL: 312.692.1000 F AX: 312.612.1172 WWW.GREENEFORENSICAS.COM 98 Contents Letter of Transmittal...........................................................................................................3 Project Understanding.........................................................................................................4 GFAS Experience...............................................................................................................5 GFAS Staffing....................................................................................................................6 GFAS References..............................................................................................................10 GFAS Service Plan...........................................................................................................12 Services Expected of the City...........................................................................................14 GFAS Fee Proposal......................................................................................................... 15 GFAS Representations .................................................................................................... 16 Attachments: Fair Employment Practices for Qualifications of Bidders for the City of Seward, Alaska Questionnaire City of Seward Non-Collusive Affidavit of Proposer State of Alaska Business License W-9 99 Letter of Transmittal April 16, 2021 Ms. Brenda Ballou City Clerk City of Seward 410 Adams Street PO Box 167 Seward, AK 99664 RE: ForensicAudit Services DearMs. Ballou: On behalf of Greene Forensic Accounting Solutions LLP, it is my pleasure to to provideForensicAudit Servicestothe City of SewardSewardor ). The purpose of this engagement will betoexamine and provide our professional recommendations over utilities. GFAS is located at 200 W. Jackson Blvd Chicago, IL 60606 where the Firm has provided forensic accounting, fraud examination, and training services to a wide variety of clientele including governmental agencies, publicly and privately held business entities, not for profit organizations and tribal organizations. Enclosed is our detailed proposal for performing this engagement. We have provided detailed backgrounds about our firm; our team members; list of references; and descriptions of prior engagements that we have performed that illustrate our ability to not only meet but exceed your expectations. We are excited by this opportunity to work with the City of Seward. Please read through our proposal and contact me with any questions you may have. I am sure we can address any issues. Sincerely yours, Greene Forensic Accounting SolutionsLLP Craig L. Greene, CPA/CFF, CFE, MAFF, MCJ 200 W. J ACKSON B OULEVARD S UITE 1300 C HICAGO I LLINOIS 60606 T EL: 312.692.1000 F AX: 312.612.1172 WWW.GREENEFORENSICAS.COM 100 Project Understanding Electric Utility Although no longer a part of the request for proposal, we understand that the City is concerned about the transmission loss between the point of purchase from the Chugiak Electric Association and the point of resale to the ultimate consumer.It has also observed that this loss has dropped from 11% in 2016 to 7% in 2020.As noted in the energy revenue statement attached to the initial RFP, the difference between the cost of power purchased and the revenue received from the resale of that power amounted to approximately ($5.7M)in 2018. During this time, the City has been installing donated digital meters which may account for a portion of the reduction in the electric transmission line lossbased on our discussion with industry experts.Were the donated meters recalibrated prior to installation? We understand that the meter exchange is not yet complete. Although not part of our proposal, we can utilize our network toobtain the services of an engineering firm to assist the City with an independent analysis of its electric infrastructure concerns under a separate engagement. The RFP states that the City reads 2,900 meters per month.Doesthe 2,900 meters represent 100% of the electric customers? If not,are some meters read on a quarterly basis,and/orare some customers self-reading their electric meters?If meters are being self-read, how often are meters read by the City and reconciled to the customersreadings?Are any customers on an estimated flat monthly billing amount which is adjusted periodically?In addition to possible double billings and rate issues, do any of these issuesaboveaccount for the alleged overcharges and refund questions? The RFP also does not indicate if customersmay have their own renewal energy sources such as solar panelsor wind generation devices, and if so, does the City purchase that power either through ? utility billings are based on actual usage and there are three tariffs thatcomprisedthe monthly invoice: 1.Seward Public Utility charge - 2.Cost of Power Adjustment - distributed amongst users based on class for the wholesale power Seward buys from CEA. 3.A customerbase charge applied to every electric customer. The RFP is requesting an audit of four months of actual invoices, November 2018, December 2018, February 2019 and March 2019.We understand that the months inquestion were selected based on actual issues identified by customers. Beyond solely examining those months, following discussions with an electrical engineering consultant, we believe that an alternativeapproach would be to reviewcustomer invoices for the same two months starting in 2017 through 2021 to measure trends and account forany changes in weather etc.Pricing for this alternative approach will be provided upon request. Page 4 101 Water The City has approximately 996 water customers.Some water customers are invoiced at flat monthly rates and some are billed based on meter readings.Are water meters periodically recalibrated?Are ERU customers billed an equal amount, or does the amount vary based on the size of the service pipe?Weunderstand that the identified issues to date include improper billing of water lines, erroneous additional rate charges, and double charging based on both usage and Sewage The City has 970 sewage customers.Customers with water meters are chargedbased on their water meter usage.Did the issues identified with water customers also impact the sewage charges? GFAS Experience Greene Forensic Accounting Solutions (GFAS), a limited liability partnership, is ideally suited to perform the utility review and audit services for City of Seward, Alaska. GFAS is a CPA and consulting firm with offices in Chicago, Illinois and Las Vegas, Nevada. Since its founding in 2003, GFAS (formerly known as McGovern & Greene LLP) has performed hundreds of engagements including construction audits, evaluation and assessment of internal controls, risk consulting, forensic examinations, municipal debt and revenue consulting, litigation services, and internal/performance audits. Our firm is highly qualified for this assignment as we have worked extensively with not-for-profit organizations, publicly and privately held business entities, numerous government agencies, including tribal organizations. Our personnelhave extensive experience with electric utilities. to work diligently and effectively on your engagement. Unlike many of our competitors, GFAS experiences very little turnover in our staff and thus you can beassured that the team assigned to this engagement is comprised of well-versed and experienced consultants working as a unit. Our consultants come from a diverse background. th deep utility and audit experience. GFAS has deep experience working with governmental entities. We are currently performing internal audit services for a major Tribal Nation and a forensic audit for a major municipalityin the South West. We perform tax services for the City of Chicago and we are currently engaged in projects for various States. GFAS personnel have managed accounting and finance projects for a utility holding company, as well as directed the construction and procurement audit program for a major investor-owned public Page 5 102 utility. Audits included the procurement, construction and maintenance of transmission and power generation facilities (nuclear, fossil, and alternative energy). More recently we have been engaged in forensic audits of public entities including accounting and general ledger analysis, public debt issuance and debt service, treasury operations, as well as the collection and allocation of tax revenues. GFAS is regularly retained on behalf of major insurance carriers to audit remediation and reconstruction claims following natural disasters and fires. Our examination of these claims has found overcharging of labor hours and rates; equipment rental rates; materials supplied to the jobs both in quantity and price; and other anomalies. Our retention is also based on our ability to testify as expert witnesses in any resultant litigation. We have also worked with most of the major U.S. Steel producers investigating corruption payments and vendor overpayments including contractors rebuilding furnaces as well as an environmental contractor. GFAS identified and recovered construction overpayments related to the upgrades of hundreds of major department stores for a major US retailer. Our audits have identified issues such as bidding irregularities, contractor and vendor overpayments, subcontractor fraudulent overcharges, as well as overlapping contract provisions for the same work. We introduced real-time internal auditing for complex projects, embedding auditor(s) in the project management team to identify problems and develop solutions real-time, conclusion. In the tax area, our team is experienced in identifying opportunities to reduce tax expenditures by identifying potential tax credits and opportunities to reduce taxes through optimal structuring of contracts. Our team members have represented clients undergoing project specific federal and state tax audits, including negotiating settlements with authorities when requested. For complex projects featuring multiple sales tax rates, we have negotiated pre-construction agreements with taxing authorities, ensuring that the client receives the full benefit of applicabletax incentives. Each project had unique sales and use tax requirements, especially due to the types of facilities being constructed and the differences in state laws and regulations concerning manufacturing and environmental incentives. We underwent multiple tax audits, negotiating settlements on behalf of the contractor and client GFAS personnel have worked with numerous accounting systems and payables systems including highly automated retailer payment systems for retailers, enterprise resource management within F250 public companies, to manual payment systems. We have also worked with all types of payroll systems for both closed and open-shop projects with thousands of employees, contractors, and subcontractors. GFAS Staffing The following highlights the specialties and background of our proposed team members for this important assignment. Our team will be supplemented with additional qualified individuals as required. Page 6 103 Craig L. Greene, CPA/CFF, CFE, MAFF, MCJwill be the firm partner in charge of this engagement and will be actively involved with the assignment. He will be responsible for developing the examination program, reviewing the work of the consultants and finalizing the Report of Findings. Craig recei worked on hundreds of engagements assessing internal controls and investigating fraud, including many of the consulting assignments listed above. Prior to the formation of GFAS, Craig was a partner in charge of Forensic Accounting and Litigation Services for a Chicago CPA firm; owner of his own CPA firm; audit manager for a suburban Chicago firm;and staff auditor at Coopers & Lybrand (n/k/a PriceWaterhouseCoopers), where he specialized primarily in audits of large publicly traded companies and was part of the Healthcare Practice Group. He has worked in public and forensic accounting for over 40 years. His first forensic accounting assignment was with Coopers & Lybrand in the spring of 1976. Craig is currently licensed to practice as a CPA in the states of Illinois and Nevada. He is also Certified in Financial Forensics through the American Institu Financial Forensics through the National Association of Certified Valuators and Analysts Since 1987, Mr. Greene has provided expert testimony in a wide variety of litigation matters involving commercial disputes, partner/shareholder litigation, complex financial matters, as well as a wide variety of frauds, insurance claims, white collar criminal investigative anddefense matters, CPA malpractice, high net worth family and other financial disputes. Mr. Greene has worked with prosecutorial and law enforcement agencies on numerous investigations and prosecutions involving illegal drug sales, money laundering, casinolicensing, and other criminal fraud cases. He has also worked with corporations and numerous state and local governments on internal investigations, fraud prevention, remediation and due diligence matters. He has worked with local and Federal Public Defen Mr. Greene has supervised audits of large publicly traded corporations, as well as performing audit, accounting and tax services for many privately held business enterprises, government agencies, and not-for-profit corporations. Mr. Greeneis a member of numerous professional and trade associations including the AICPA, Mr. Greenewas a senior instructor of Fraud Examination and Forensic Accounting for the ACFE, teaching courses in fraud examination throughout the world; former Regional Governor of the ACFE; winner of the 2003 Hubbard Award of the ACFE; and founding member and inaugural president of the Chicago Chapter ofthe ACFE. He is and has been a fraud instructor for the IIA, Departments of Transportation, Agriculture and Education and numerous other organizations. Craig has been a guest lecturer on fraud examinations at University of Illinois Chicago, University of Texas, University of Notre Dame, Northwestern University and several other small colleges. Page 7 104 James Edmonstone, CPA, CFE, CGMA, MBAis a Strategic Partner withGFAS. Jim will be the engagement director for this project. He has directed financial, construction, insurance, and audit organizations for Fortune 50 Corporations, and has worked with closely held companies, nonprofits, and governmental entities. Jim rec Birmingham. He has completed the Negotiation, Advanced Negotiation, and Mediation programs at Harvard Law School. He is a member of numerous professional and trade associations including the AICPA, the ssociation of Certified Fraud Examiners, ,and other organizations. Jim is licensed to practice in Illinois and Texas. Jim has worked with GFAS and its staff on numerous forensic accounting, internal audit/performance, and fraud examinations including a major municipality and a tribal nation. He has directed audit compliance, performance, and recovery efforts for major corporations and has settled numerous complex federal, state, and local tax matters; identified and recovered funds resulting from diversions of client assets including the theft of tangible and intellectual property and has valued and negotiated settlements with distressed insurers and reinsurers. He has negotiated settlements between parties in pre-trial disputes and numerous construction claims. Jim also has assisted governments with debt compliance matters. Jimhas extensive utility and utility holding company experience. For NextEra Energy(Florida Power & Light -FPL), he directed the procurement and construction audit program for the utility, including projects related to theconstruction and maintenance of its Nuclear, Fossil, and Alternative EnergyPower Generation, and Transmission facilities. He chaired the committee which redesigned the internal audit approach for the utility. For another assignment, he had responsibility for West Coast a largest solar power generation facility. For the holding company of FPL, he was the acting controller for a subsidiary,and for another project he was responsible for due diligence related to a number of divestures. For Colonial Penn Insurance Company, a subsidiary of FPL, Jim directed For Sears, Searsn a well-publicized case, he identified of productsfor a direct competitor and directed the multi-year effort to recover the assets and damagesin a Federal lawsuit. Prior to FPL, Jim was the controller for a subsidiary for Bechtel and a field controller on projects for Flour Corporation. He has worked on issues with corporations such as Ahold, Bechtel, Budget, Colonial Penn Insurance, Danaher, Emerson, Exxon, Fluor, H&R Block, Huffy, Kimberly-Clark, Miracle-Ear, Monsanto, NextEra Energy, Quaker, Sears, Shell, South Carolina Electric and Gas, Target, and Walgreens. Page 8 105 Daniel Schneider, CPA, CIA, CFEwill be a senior consultant on this engagement and responsible for the evaluation,review,and analysis of the monthly billing statements over the specified four (4) months. Dan has performed many forensic accounting, business,and litigation consulting engagements. Dan received his Bachelor of Science Degree in Accounting from Iowa State University. Dan is a Certified Public Accountant, Certified Internal Auditor, and Certified Fraud Examiner. Dan is currently licensed to practice as a CPA in the states of Illinois and Wisconsin. Prior to joining GFAS Dan worked for KPMG in their Risk Advisory practice where he has extensive experience in internal controls, internal audit, and data analytics. With his experience Dan has helped clients with business risks, implementation of effective controls and compliance processes, and identifying better practices while assisting with reducing the cost of operations and realizing process improvement opportunities. Prior to KPMG, Dan worked at the Iowa Department of Transportation as a revenue auditor and for the Auditor of the State of Iowa as a staff auditor. Dan worked within the agencies and with external parties for financial and operational audits. Dan is an active member of the IIA and has served on the Board of Governors of the Milwaukee Chapter of the IIA. He is a member of the American Institute of Certified Public Accountants (AICPA), the Illinois CPA Society (ICPAS), and Association of Certified Fraud Examiners (ACFE). The following is the organization chart for the assignment: Craig L. Greene Engagement Partner Dan Schneider James Edmonstone Engagement DirectorSr. Consultant Page 9 106 GFAS References The following is a list of Business references and governmental agencies that we have performed comparable projects for: Paul B. Cogswell, JD, CFE, CCEP Assistant Commissioner Chicago Fire Department 3510 S. Michigan Avenue Chicago, IL 60653 Tel: 312.745.3869 Email: paul.cogswell2@cityofchicago.org Hal Morris, JD Partner Saul Ewing Arnstein & Lehr 161 N Clark St., Ste. 4200 Chicago, IL 60601 Tel: 312.876.7100 Email: hal.morris@saul.com Matt Beland Vice President of Internal Audit West Corporation 11808 Miracle Hills Drive Omaha, NE 68154 Tel: 312.493.2222 Email: mvbeland@west.com The following is a list of clients that we have or are performing projects for: Agency NameLarge SW US Municipality AddressC/O Rothstein, Donatelli, et al. 500 4th Street, Suite 400 City, State, Zip CodeAlbuquerque, NM 87102 Telephone Number(505) 243-1443 Contact PersonMarc Lowry, Esq. Email:mlowry@rothsteinlaw.com Dates of Service9/15/2019 to Present Project DescriptionForensic Accounting support for an internal investigation of accounting irregularities in municipal bank, bond, payables, and other general ledger Page 10 107 accounts. Due to the nature of the ongoing investigation the name of the municipality cannot be made by GFAS. Agency NameJonathan Thomas, MBA, Controller of USC Keck Hospital AddressKeck Hospital ofUSC City, State, Zip CodeUSCNorris Cancer Hospital Telephone NumberUSCVerdugo Hills Hospital Contact Person(s)(O)323.442.5216Keck (O)818.952.4659Verdugo Email:Jonathan.Thomas@med.usc.edu Project DescriptionAccounts Payable Fraud audit for USC Keck Hospital in the Spring of 2016. Agency NameGeorgia Lottery Corporation Address250Williams St, Suite 3000 City, State, Zip CodeAtlanta, GA 30303 Telephone Number(404)215-5000 Contact PersonEdward Katich, Vice President Risk & Compliance Email:EKATICH@galottery.org Dates of Service20162018 Project DescriptionForensic Auditors engaged to examine financial transactions concerning coin operated amusement machines. Agency NameIllinois Toll Highway Authority Address2700 Ogden Avenue City, State, Zip CodeDowners Grove, IL 60515 Telephone Number(630)241-6800 Ext. 1311 Contact PersonCassaundra Rouse Dates of Service2014 Email:crouse@getipass.com Project DescriptionForensic audit of management company managing Oases on the Illinois Toll Highways. Agency NameSedgwick Address12650 Ingenuity Drive, Suite 200 City, State, Zip CodeOrland, FL 32826 Telephone Number(407)340-2860 Contact PersonKathleen Safford Email:Kathleen.safford@sedgwick.com Page 11 108 Dates of ServiceOngoing Project DescriptionDisaster commercial construction claim audits, oversight assistance, and related services. Agency NameNebraska Department of Revenue -Nebraska Lottery Address301 Central Mall South, PO Box 94818 City, State, Zip CodeLincoln, NE 68509-4818 Telephone Number(402) 471-5948 Contact PersonMichael Olson Dates of Service2003 and 2013 Project DescriptionFinancial due diligence and forensic procedures concerning applicants for Lottery Machine Operator GFAS Service Plan GFAS plans to structure the engagement in providing forensic accounting services to the City of Seward in the following areas: 1.Policies and Studies 2.Electric Service 3.Water Service 4.Sewage 5.Potential Fraud Our audit plan is designed to address all the deliverables described in the RFP. 1.GFAS will performforensic accounting proceduresit deemsnecessary to identify and quantify irregular proceduresit observes, policies and practices impacting the accuracy of invoices issued to customers of the City of Seward water, sewer and electric utilities duringthe agreed-upon four sample test months of November and December 2018 and February and March 2019. 2.These tests will be designed to address the following areas of concern for the City: a.Are invoices consistent with applicable tariff provisions? b.Are invoices consistent with meter reading records? c.Have the classifications of rate payers for billing purposes been correctly and consistently applied? d.Has the policy for placement of demand meters been correctly and consistently applied? e.ses of invoicing for water and sewer services been consistently and correctly performed? 3.GFAS will perform interviews, as needed. Page 12 109 4.The review of the test monthsinvoices will include acomprehensive review of every monthly invoice issued to residential, commercial, and industrial customers during November and December 2018 and February and March 2019. 5.During the course of the initial investigationGFAS understands that the scope of work may be further expanded or altered at the recommendation of GFAS and uponwritten approval of the City Council.If the audit scope is modified, GFAS will provide the City a revised estimate of hours. 6.Following completion of the forensic audit, GFASwillissue a written report communicating all discovered abnormal activity, its quantification, cause,and consequence. 7.GFAS will present its report offindings to the City Councileither in person, or via Zoom, as mutually agreed upon. 8.GFAS will perform this engagement in accordance with Generally Accepted Accounting Principles and Government Auditing Standards. 9. identified during the engagement, including recommendations related to invoicing, standard operating procedures for customer billing, and billing policies. ThePoliciesand Studiesreviewwillencompassthecurrentelectric andwaterpoliciesasitpertains to overchargesandrefunds.Additionally,GFASmay opt to researchstructuresandbilling practicesforsimilarcitiesin the areato determinesimilaritiesanddifferencescomparedto the City of Seward. The Electric, Water, and Sewage Service examinations will consist of understanding and reviewing meter exchanges, accuracy of billings, reasonableness of rates for demand and flat rate billings, and operating margins to the City of Seward. Lastly, we will examine the billings for evidence of potential fraud including, but not limited to, rate fixing or theft of services. Our four-phase approach willbefollowed for each area mentioned above concurrently. Engagement Report of Findings and Fact Finding and Analysis and Organization and Conclusion of Information GatheringObservations PlanningEngagement The Engagement Organization and Planning Phase-GFAS' initial visit by our audit team will include discussions with the City and pertinent personnel and other involved parties to confirm the understanding of the overall scope and objectives of the audit. A major focus of this step is to confirm specific approaches needed to optimize the outcome of the audit. Specifics regarding project logistics, key contacts, interfaces, schedules, and communications will be established during this step. During the Fact Finding and Information Gathering Phase, GFAS will initiate itsData and Document Collection and Reviewprocess. The GFAS team will provide the City a listing of specific data and documents required for the examination. To the extent practical,the GFAS team will carefully review this information prior to commencing any field work.Experience has shown that reviewing available informationprior to interviews and site visits substantially improves the Page 13 110 overall efficiency and effectiveness of our field work. Additionally, we suggest locating the data and documents in a single, centralized, and secure electronic data base. This will facilitate our review process, ensure access to information to follow up on facts and details later in the audit, and provide a complete document and data audit trail. The Analysis and Observation phase consists ofinterviews with selected involved individuals, operational and business process observations to understand how the process actually works compared to expectations, and document analysis review and field work. This final step in the GFAS methodology consists of draft report preparation in which the GFAS audit team will finalize the analysis phase and assemble observations into a Draft Report that will be submitted for validation prior to issuance. Once GFAS has presented the Draft Report, the City may provide comments, critiques, and further discussion points. GFAS will consider these comments prior to issuing our final report. The Final Report, as approved by the City will be produced by GFAS in a manner suitable for distribution as specified by the City. PhaseEstimated Hours EngagementOrganization andPlanning40 Fact Finding and Information Gathering90 Analysis and Observations1,000 Report of Findings and Conclusion of Engagement120 Total1,250 Services Expected of the City Provide sufficient background to allow us to perform the duties requested. Fill requests in a timely manner. Provide access to documentation and individuals as needed. Communicate timelines, expectations,and goals throughout engagement. Answer questions thoroughly andhonestly. Page 14 111 GFAS Fee Proposal Our professional fees and estimated cost for this engagement are shown below.Our fees are exclusive of any travel expenses, which will be invoices at actual cost. PersonnelHoursRateTotal Estimate Managing Partner75$ 275$20,625 Director450$250112,500 Sr. Consultant(s)725$ 200145,000 Total1,250$278,125 Page 15 112 GFAS Representations 1.GFAS has the personnel and resources reserve to assure task continuity. 2.GFAS agrees that the resultant contract may be terminated in the event of non- appropriation of funds. 3.GFAS agrees to conform to all applicable laws and ordinances and statutes of the Federal Government, State of Alaska and City of Seward, including but not limited to the following: a.Civil Rights Act of 1964, as amended. b.Civil Rights Act of 1991, as amended. c.The Municipal Code of the City of Seward. 4.GFAS agreesthat if the City cannot in good faith negotiate a written contract within a reasonable time with GFAS, the City may unilaterally cancel its selection of GFAS. 5.GFAS agreesthat periodic payments to the Auditor will be made as agreed upon in the signed contract with the City. 10.GFAS agrees that the contract between the City and the GFASshall be governed by and construed in accordance with the laws of the State of Alaska and the ordinances of the City of Seward. 11.GFAS will provide the required insurance certificates upon notification of contract award. 12.GFAS will aSeward business licenses upon notification of contract award. 13.An Alaska Business License is attached. 14.Form W-9 is attached. 15.The Fair Employment Practices for Qualifications of Bidders for the City of Seward Alaska is attached. 16.The City of Seward Non-Collusive Affidavit of Proposer is attached. Page 16 113 114 115 116 117 Agenda Statement Meeting Date: May 10, 2021 To:City Council From: Liz DeMoss, City Council Member and Stephen Sowell, Assistant City Manager Agenda Item:Schedule a work session to discuss the Developer Reimbursement Program BACKGROUND & JUSTIFICATION: The City of Seward has two pending applications for the Developer Reimbursement Program. Recently, discussion has taken place surrounding the need for program updates in order to better facilitate incentivizing residential development in the community. There is an overwhelming demand for residential housing in the Seward community and provision of utilities is a primary barrier to creation of more housing. The current program needs modifications to better facilitate this production by developers. RECOMMENDATION: City Councilto discuss the Developer Reimbursement Program and possible program updates and modifications. 118 119 120 May 2021June 2021 SuMoTuWeThFrSaSuMoTuWeThFrSa May 2021 112345 23456786789101112 910111213141513141516171819 1617181920212220212223242526 2324252627282927282930 3031 SUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY Apr 252627282930May 1 2345678 6:15pm HPC 5:30pm P&Z 12:00pm PACAB Special Work Session Mtg Meeting (for (Council HP Awards)Chambers) 7:00pm P&Z Mtg (Council Chambers) 9101112131415 5:30pm CC Work 6:00pm HPC 5:30pm Appeal Session Work Session Hearing (Electric Rates)(CLG Grant (Res2021-008) 20005) 7:00pm CC Mtg (Council 7:00pm HPC Chambers)Regular Meeting 16171819202122 6:15pm HPC 12:00pm PACAB 6:00pm P&Z Work Session Work Session Work Session (CLG Grant (Chambers)(Council 2005)Chambers) 23242526272829 5:00pm CC Work Session (CIP Prioritization) 6:00pm CC Work Session (PERS) 7:00pm CC Mtg (Chambers) 3031Jun 12345 Council Calendar15/5/2021 11:39 AM 121 June 2021July 2021 SuMoTuWeThFrSaSuMoTuWeThFrSa June 2021 12345123 678910111245678910 1314151617181911121314151617 2021222324252618192021222324 2728293025262728293031 SUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAYSATURDAY May 3031Jun 12345 7:00pm P&Z Mtg (Council Chambers) 6789101112 6:00pm HPC Work Session (CLG Grant 20005) 7:00pm HPC Regular Meeting (Council Chamber) 13141516171819 7:00pm CC Mtg 6:00pm P&Z (Council Work Session Chambers)(Council Chambers) 20212223242526 6:15pm HPC Work Session (CLG Grant 20005) 27282930Jul 123 7:00pm CC Mtg (Chambers) Council Calendar25/5/2021 11:39 AM 122