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HomeMy WebLinkAbout07242023 City Council Work Session Notes WORK SESSION NOTES CITY COUNCIL Called by: Sue McClure I Time: 5:30 m Date: 7/24/2023 Purpose: Water and Sewer Infrastructure Doug Schoessler, Linda Paquette, Sully Randy Wells, Robert Present: Jusino, Skip Reierson, Daryl Council Members Present: Barnwell, Sue Demoss, Schaefermeyer, Norm Regis, Stephen Sue McClure, Mike Sowell, Alan Nickell, Calhoon, John Osenga Administration directs work session to Doug Schoessler Doug—Public Works Director—new water sewer going in and development going on. (ARPA Funds and Different funds going to new development) Projects—Packet provides the capital projects. Bigger ones being looked out. Water Projects (Asbestos pipe) once you break it up there are issues. Pipes—clay pipes (sewer pipe) are most fragile. Priority Projects for Water Department 1. Elm Street(2" line) compromised to get to real water main (pricing on it) (water lines are normally in street)when we do street paving projects do these possibly at same time. 2. Valves done (at 4 intersections) if valves do not work you have to go down the line further and cut more off, 3. Bear Drive (Shallow, 3'deep,— 10" cement asbestos line, older line, (sewer lines run down alleyways) 4. 14" & 10"line across from Pheonix up to Dimond (multimillion $) (Dig up whole bike path, working but would be nice to get done. Priority Projects for Sewer 1. Alley—Madison to Monroe—north of shop, valley in that sewer line, has to have gravity for it to flow. 2. Manhole refurbishment a. Infiltration— leaks up thru manholes. Do not want extra water in Manholes Dilutes are inflow and makes it harder to remove things. Need Refurbished. i. Grout/build— issue with one mainly when we get big rainfalls. 3. F.O.G. (Fat Oil and Grease) a. Near Harbor (Chinooks/Rays) b. Clogged— grease entering system. —line between our line and theirs c. Better traps/ways to clean. 4. Lagoon Repairs Water lines we really need to look at doing these water lines when we do the paving. Take Questions? WORK SESSION NOTES CITY COUNCIL Mike Calhoon—Reason brough up was more/less on exact priority and where funding is going at this time,putting lot of money away to take care of this. What our plan is with all this new infrastructure, money to DRP, ARPA money in different things and what he wants to find out is what our plan is to fund these projects and that we are planning and putting money away to take care of this as we have a lot of infrastructure going in. Concern and or not founded all flow from new infrastructure to old infrastructure, what it does for that and what we need to do to plan for it financially as well? Doug— Sewer Sludge removal- ($2 million)put in to use for sludge removal improvements, it helps but it doesn't really do what we need it to. Lowell Point/SMIC—new liner needs to be replaced. Improvements with aerations, or blowers,projects that we need to look into and wait for funding. Continued to talk about what needs to be done. Wells—For future are their upcoming budget and we are looking at these items are their items we are going to try to budget for 2025 for some of the larger project in addition for Lowell Pt Road? Doug—Yes, some fund balance to work into those. Enterprise fund. Would like to do one big project or combination of some projects. Looking to do Alley way on North side of shop 6tn and Bellaine, if we can't use ARPA Funds, we would have to pull from fund balance to do it, applying for different loans, that possible turn into grants. DEC revolving funds. Money available, and all could apply for fill out hundreds of pages and gets over whelming with staff that we have. Continue to talk about grant help with different things and looking for it, some of projects 2023 get that one done one way or another. Seward Manholes...even half it helps. Wells—Road Improvement areas? Doug - In upcoming Budget, in the CIP plan there is, it is like a wish list. We do have 0- 8 in town right now. Wells—When we got the funding for the redo the roads in town, 3 years ago, (2016- 2017), Why was Brownell Street treated like an alley and not paved? Doug—20 ft right of way, it has been an alley for history forever, on City map it list as Brownell Street and on plats its listed as an alley. It wasn't one that came up to do at that time. We can pave all the alleys, but all the utilities are going down them (sewer electric, Communications) and you would have to deal with if paved. DeMoss—That is the reason the Dairy Hill roads haven't been paved? Doug—2016 was a bond that grind and paved. Existing paved roads. DeMoss—Alleys are looking good. Calhoon- $2 million sludge removal—but we have other things we can do to fix out there, so what are we doing to get that available as it sounds like a priority, how close are we to having those funds? WORK SESSION NOTES CITY COUNCIL Doug—what funds are available? ARPA, legislators to get funding. That particular project we have to look at, revolving funds. What ever we can get through our legislator and revolving funds. Sue- What is the bottom-line cost for the Sludge removal? Doug—All of that estimate closer to $5mil. ($4-5Mil) Calhoon—need to develop a better financing plan of our own. Look for a specific plan Don't want to see us get into a place where we have to take out a $20 mil bond because we haven't done anything for years. Grants are great if we can get them. Doug—Water/Sewer Rate Study Rate Structure to fund(projects with other funding) Has to be a rate change, get rid of ERUs go to meters (3 plex up) Rate change if not grants. Linda Paquette—Appreciate Calhoon comments and appreciate the situation council is in Ask them to be visionaries over the past 25 years and we have had consultants tell us that the lagoon is too small. But this summer it's been ok. With the new subdivision it going to make it less capable for the summer loads. Before Janette left, she understood what needs to happen and continue maintaining it. There is technology out there now to have a small footprint and not spend all the money on the goons. But because of our design now have to get helicopters, do all this other stuff that is very expensive. Look at what Homer does that they are spending and for a 10-year period they are spending less on their facility. Excited that we are doing the daily stuff but encourage us to be visionaries and what we need in 30 years. Skip Reierson—Thanks for doing work session as it their personal time. Thanks for bringing format back an would have like it to been here during the ????program. Balance proceeds from government. Hopes the lagoon stays there. Rumor putting Lagoon in town. If it goes out there, what do we do?Vision of putting one in Seward. Daryl Schaefermeyer— History—Regulation—it wasn't Seward choice to get a lagoon— legal sanction with by EPA. Fought that for years. Forced into that location (no choice) certain, size, depth, etc.,) Regulated by EPA &DEC. Promised the rates would never go higher but they did. All going to be costly. Rates will never be lower than they are today. (Electric, Sewer, and Water) Love the council for having this challenge with this situation. Not easy solution. Do our best to do what is possible. Appreciates you. Sue ask Daryl about playing on the beach where the outfall is? Sue said she wasn't allowed to play there. Daryl -No depth going out. Continue to talk about what he did when he was younger about contract, road, powerlines, etc., WORK SESSION NOTES CITY COUNCIL Administration—Norm asked Doug anything to add? No what we talked about and to get back into rate study and projects. Mike—Murf Fund look into it. Start planning down the road. Sue asked person that walked in and if had wanted to say anything. Bruce Jaffa— Definitely Needs— Second facility and that public works has done a great job. Barwell— Strategic Plan reflects this? Admins - Strategic Plan is a 1999 document and the Comp plan 2016 doc when it originated and the CIP is a rolling plan (wish list) 2024/2029, to Doug point we treat it like a wish list to seek extra funding as apposed to incorporate stuff in operating budget. Barnwell—just need to think long term, and that we should use the Strategic and Comp Budget be vital.. Think things like parking, that generate money that we aren't paying attention to, we should focus on. Wells— Statement to Barnwell—parking, recently purchased, property and has to tell customers that they can't park on his parking to avoid paying for parking. Yes, he wishes we could enforce parking. Question - if were to say, for example our sewer system, lagoon system is max out, homes and infrastructure that we have and with all new construction.... Reimbursement program wit utilities, include a fee that goes to a fund that goes into a expansion of new waste water system? New homes and uses..... is that a feasible thing to do? Instead of generating revenue from construction? Norm- CRR Fee at the Harbor. There is 1% sales tax that will be stopping soon,just to keep that going to go to things like that. Wells—this isn't a additional 1% sales Tax? Can you tell everyone What 1% sales tax is going away? Sowell is explaining how the 1% sales tax is put in place prior to Providence and goes back to Seward General. City uses that 1% for Capital items for Providence. City is not obligated to do so, memo.... City would have to cover the shortfall if was operating in the red. That is why the sales tax covered that. That one percent sales tax is not in with Mountain Haven. We can pay off the MH bond in 2026, there roughly $13 and change millions of dollars left. Skip Reierson probably know this $$ amount And approximately $11 mil in the healthcare fund now. Once MH bonds are paid off the City could retain that 1% Sales tax and use for anything. Demoss asked how much we gave SMH last year? Norm directed them to the Finance Director to check. Skip Reierson— answered with about $650 Wells— 1.4million- in conjunction with Calhoon and need to save for larger projects. Instead of increasing expenses, we are already used to paying it, not increasing it just moving to different operating budget, Calhoon would you agree that that money could go into operating and maintenance. Yes that would be worth looking into.(Calhoon) WORK SESSION NOTES CITY COUNCIL Barnwell—if Providence gets $650 and we all of a sudden say "no more", are you implying that Providence is healthy enough that they do not need help any more or are we at risk. Sully is Responding. Skip Reierson— clarify- "We the COS own the physical assets of the hospital?"Yes—was said. Providences are our manager. All equipment in that building will be bought by us and owned by us. In even that we fire, or Providence decides to leave. We still have all the physical equipment in the building to turn over to new operator. So, until we decide to sell another major asset, the city owns, those 1% funds need to stick around. We are going to be paying for other equipment. (MRI $1.3 Million) mammogram machine, we still on the hook for any operating loss. Ask administration to confirm this. When census fell 4-5 years ago—we were on the hook. Now with change in CFO, CEO, etc. now things are up. Cheering them on. Hospital doesn't make money, SMH makes the money. See Providences financial statement and our financial statements—Providence, cash that providence has on their books and annual profit belongs to the city. "That is your cash". They are using cash as working Capital, make other improvements. They are using their cash as working capital and for working capital to make improvements. States that that 2-3-4-5 mil is our cash. To Wells, if we were to back out and sell that asset, along with the 1% and use that for a new septic, a lot of things to talk about, another Work Session to come. Daryl— Ambulance Corp is aging, hard to hear everything but continues to talk about things happening. Think about EMS/Hospital services, and rest of borough operates in that model. Larger tax base, more people to spread that out. Barwel I - Have $5/6 mil, board manages that and 1% how are those funds managed and at what point should that be distributed? Skip - Make recommendations to do WS. Sowell—Providence Hospital operating agreement will be coming up to Council in Oct 14 meeting. Need s to make sure everyone understands when we talk about Providence, Providence is the Hospital and SMH is the LTC, they are two separate topics. The 1% is not tied to the Hospital. Other than the capital piece. Hospital is a city facility. Important not to bring SMH into with the Hospital. Wells—Direct admin to put together a Special Meeting with Providence in Aug. Sue- We can't give direction. But any two of us can put together a request a WS on the 14th after this. Sue- Work Session is adjourned at 6:38pm