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HomeMy WebLinkAbout07282008 City Council PacketSeward City Council Agenda Packet '~. t ~~ - City Council Chambers ~ • ~ ~ ., ~» ,_ :: :_ °, ~,~~ . ~, ~. ° ~ ~ n .. ~`- .~. y„ Yi i+~Y ~r'T'F`u + y'~' ss:.~, .~ ~ ,~ ~. * ~' July 28, 2008 ~ ~'~„ ^,~ Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA AM-Ame~9caCigr y ; ~tY. ~ - {Please silence all cellular phones and pagers during the meeting} ® Note NEW time! July 28, 2008 7:00 p.m. Council Chambers Clark Corbridge Mayor Term Expires 2009 Willard E. Dunham Vice Mayor Term Expires 2008 Robert V aldatta Council Member Term Expires 2009 1. 2. 3. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL CITIZENS' 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 2 minutes per speaker and 30 minutes total time for this agenda item. J APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda) Tom Smith Council Member Term Expires 2009 Betsy Kellar Council Member Term Expires 2009 Jean Bardarson Council Member Term Expires 2008 Linda Amberg Council Member Term Expires 2008 Phillip Oates City Manager Jean Lewis City Clerk Cheryl Brooking City Attorney 1. SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. Proclamations and Awards 1. Introduction of the 2008 Seward and Obihiro Exchange Students. B. Borough Assembly Report C. City Manager's Report D. Chamber of Commerce Report E. Planning and Zoning Report NEW BUSINESS A. Resolutions * 1. Resolution 2008-069, Accepting The FY 2008 Rural AED Training Grant ............................................................Pg 3 2. Resolution 2008-070, Authorizing The City Manager To Enter Into A Purchase Agreement For Two 500 KVA Transformers, For A Total Amount Not To Exceed $33,560.00 .............................Pg 5 3. Resolution 2008-071, Authorizing Pacific Power Products To Facilitate Repairs Of The 1994 Autocar Plow/Sander Truck For An Amount Not-To-Exceed $32,200, And Appropriating Funds......Pg 7 City of Seward, Alaska Council Agenda July 28, 2008 Page 1 4. Resolution 2008-072, Approving A Contract With RBC Capital Markets To Provide Underwriter Services For The Sale Of Bonds For The Prison Expansion Project, And Appropriating Funds From Bond Froceeds ...................................................Pg 9 5. Resolution 2008-073, Amending The Contract With Mikunda, Cottrell & Co. To Reflect The Cost Of Implementing New Auditing Standards, And Appropriating Funds ..............................................................................................Pg 11 B. Other New Business Items * 1. Approval Of The July 14, 2008 Regular City Council Meeting Minutes.........Pg 19 2. Discussion on Boys and Girls Club request for funding of $25,000 for this year, and a $50,000 donation for next year. 3. Discussion on the financial disclosure and conflict of interest draft ordinance. *4. Continue funding Resolution 2008-006, which gave a $5,000 donation to the Seward Community Foundation ................................................................Pg 25 8. INFORMATIONAL ITEMS AND REPORTS (No action required) A. City of Seward Financials for May, 2008 ................................................Pg 30 B. Providence Financials for June, 2008 ....................................................Pg 32 C. DRAFT Financial Disclosure and Conflict of Interest Ordinance for usage if ballot proposition #1 is approved by voters October 7, 2008 .....................................Pg 34 9. COUNCIL COMMENTS 10. CITIZENS' COMMENTS [S minutes per individual -Each individual has one opportunity to speak.) 11. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 12. ADJOURNMENT City of Seward, Alaska Council Agenda July 28, 2008 Page 2 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING THE FY2008 RURAL AED TRAINING GRANT, AND APPROPRIATING FUNDS WHEREAS, The Seward Fire Department applied for and was awarded a Rural Automated External Defibrillator (AED) Training grant from Southern Region Emergency Medical Services Council, Inc. (SREMSC) in the amount of $1,000.00; and WHEREAS, the grant must be used for expenses related to a Basic Life Support (BLS) Instructor course; and WHEREAS, this award may be used for course materials, travel expenses and instructor time; and WHEREAS, this instructor training will provide multiple City Department's with the ability to hold in house First Aid, CPR and AED training in an effort to better prepare staff to respond to emergencies within the City thereby furthering our overall goal of protecting the lives of the citizens of Seward. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The FY2008 Rural AED Training Grant award in the amount of $1,000.00 is hereby accepted and appropriated from the miscellaneous grant revenue account no. 1 O 1-0000-4680- 0900 to the Fire Department Education and Training account 101-1220-5160. Section 2. The training will consist of a BLS Instructor class, materials, instructor time and travel. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28th day of July, 2008. Council Agenda Statement Meeting Date: July 28, 2008 To: City Manager, Phillip Oates From: David Squires, Fire Chief Agenda Item: FY2008 Rural AED Training Grant BACKGROUND & JUSTIFICATION: The Seward Fire Department applied for and was awarded a FY2008 Rural Automated External Defibrillator (AED) Training grant from Southern Region Emergency Medical Services Council, Inc., in the amount of $1,000.00. This award is to be used for expenses related to a Basic Life Support (BLS) Instructor class to be held in Seward. This award maybe used for course materials, travel expenses and instructor time. This instructor training will provide multiple City Department's with the ability to hold in house First Aid, CPR and AED training in an effort to better prepare staff to respond to emergencies within the City thereby furthering our overall goal of protecting the lives of the citizens of Seward. INTENT: The Seward Fire Department will conduct a BLS Instructor class. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The FY2008 Rural AED Training Grant award in the amount of $1,000.00 will be appropriated to the Fire Department Account 101-1220-5160. Approved by Finance Department: RECOMMENDATION: City Council approves Resolution 2008-~09 accepting and appropriating the FY2008 Rural AED Training grant in the amount of $ 1,000.00 to 101-1220-5160 Fire Department Education and training to provide a BLS Instructor class. ~.~ 4 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT FOR TWO 500 KVA TRANSFORMERS, FOR A TOTAL AMOUNT NOT TO EXCEED X33,560.00 WHEREAS, the electric department needs to purchase a SOOKVA transformer to replace the failed transformer at Seward Ships Drydock; and WHEREAS, given the recent lead times associated with ordering and receiving transformers, and the escalating costs of purchasing and shipping such specialized equipment, the electric department staff finds it in the interest of the City and its customers to have aback-up transformer in stock in case another SOOKVA transformer on our system fails; and WHEREAS, the cost of one of the transformers will be billed to Seward Ships Drydock on Job Order #3057, and the other will be held in inventory until billed out on a job at the time it is placed into service; and WHEREAS, the electric department requested quotes from our regular suppliers and received two quotes, and the department did not advertise for competitive sealed bids as required by SCC 6.10.215, because there are no vendors in the Seward service area which supply this specialized equipment; and WHEREAS, the Seward City Council hereby finds it is in the public interest to waive the advertising provisions of SCC 6.10.215 in order to expedite the delivery of these transformers, because the City did solicit competitive bids as required for procurement of materials or services over $10,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into an agreement with Wesco to purchase two SOOKVA Padmount, Stainless Steel transformers for a price not to exceed $33,560.00. Section 2. The Seward City Council hereby finds it in the public interest to waive the advertising provisions of SCC 6.10.215 based on the recitals above which are incorporated herein. Section 3. This resolution shall take affect immediately upon its adoption. ~~- 5 Council Agenda Statement Meeting Date: July 28, 2008 To: Phillip Oates, City Manager From: Tim Barnum, Manager Electric Utility Agenda Item: Transformer Purchase BACKGROUND & JUSTIFICATION: The Seward Ships Drydock needs to replace a transformer that failed in May. As part of this prof ect, the City of Seward Electric Department needs to purchase a 500 KVA, padmount, stainless steel transformer. We have a few other 500 KVA transformers out on our system including the new Long Term Care facility. We currently do not have any back-up transformers of this size in stock. In case of a transformer failure, it takes many weeks to replace it. The transformer for Seward Ships Drydock has been paid for by Seward Ships on Job Order #3057. The Electric Department requested quotes from our regular suppliers on June 11, 2008, but did not advertise for competitive sealed bids as required by SCC 6.10.210, because there are no vendors within the city capable of supplying these transformers. As a result of the request for quotes, the City received two quotes. The responses are attached. Wesco provided the low quote. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The cost to purchase one 500 KVA Padmount Stainless Steel Transformer from Wesco in the amount of $16,780.00 will be paid by the Electric Fund Account 501-5300-5440, and will be passed on to the customer . on Job Order #3057. The cost to purchase the second 500 KVA Stainless Steel Transformer in the amount of $16,780.00 will be charged to the Electric Fund Inventory Account 501-5300-5440, which will be billed to he appropriate customer when placed in service. Approved by Finance Department: RECOMMENDATION: Seward City Council approve Resolution 2008-'fib authorizing the City Manager to purchase two 500 KVA Transformers from Wesco, FOB Seward, for a price not to exceed $16,780.00 each totaling $33,560.00. Funding is available in account no. 501-5300-5440. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING PACIFIC POWER PRODUCTS TO FACILITATE REPAIRS OF THE 1994 AUTOCARPLOW/SANDER TRUCK FOR AN AMOUNT NOT-TO-EXCEED $32,200, AND APPROPRIATING FUNDS WHEREAS, the 1994 Autocar Plow/ Sander truck experienced a mechanical failure and the City Shop mechanics were unable to determine the cause; and WHEREAS, it the vehicle was sent to Pacific Power Products to assess the problem based on the fact that this vendor is the sole dealer and repair center for Detroit Engines and Allison Transmissions; and WHEREAS, the technicians at Pacific Power Products determined the transmission failure was caused by a problem in the rear differential; and WHEREAS, Pacific Power Products recommends purchasing a new transmission, rebuilding the rear differential, and fabricating an additional support mount; and WHEREAS, Seward City Code 6.10.120 (a)(5) exempts from competitive procurement, services or materials which can only be furnished by a single dealer, and the Seward City Council therefore finds that this procurement is exempt from competitive procurement requirements. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to enter into an agreement with Pacific Power Products to complete and/or facilitate repairs to the 1994 Autocar plow/sander truck in an amount not-to-exceed $32,200. Section 2. The Seward City Council hereby finds that this procurement is exempt from the competitive procurement provisions of the Seward City Code based on SCC 6.10.120 (a)(S) because this equipment can be furnished by a single dealer. Section 3. Funding in the amount of $32,200 is hereby appropriated from the General Fund fund balance account no. 101-0000-3050 to the City Shop repairs account no. 101-1310-5380. Section 4. This resolution shall take affect immediately upon its adoption. '~ Council Agenda Statement Meeting Date: July 28, 2008 To: Phillip Oates, City Manager From: W.C. Casey, Public Works Director Agenda Item: Plow/Sander Repair BACKGROUND & JUSTIFICATION: The Public Works Department experienced a failure of the 1994 White AutoCar which is used for plowing and sanding City streets. Staff sent the truck to Pacific Power Products after attempts to diagnosis the problem in-house were non-conclusive. Pacific Power Products is the sole dealer and repair center for Detroit engines and Allison transmissions. The maintenance technicians at Pacific Power Products found a failed transmission. They found that the transmission failure was caused by a problem in the rear differential. The technicians at Pacific Power do not rebuild differentials; they send them to a shop that specializes in differential rebuilds. The technicians also recommended that an additional support mount on the rear of the transmission be installed. The cost of a new transmission will be approximately $14,000, the rebuild of the rear differential will be approximately $8,000 and the fabrication of an additional transmission support will cost approximately $2,000. The shop personnel at Pacific Power estimate the labor costs for this total project at approximately 40 shop hours. The total project costs, including a 15% contingency will be $32,200. Prices and quotes for work are attached. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Ruies of Procedures. Other: FISCAL NOTE: Funding for these repairs was not anticipated in the 2008 budget, and is therefore requested from th e General Fund fund balance. Approved by Finance Department: RECOMMENDATION: Authorize the City Manager to enter into an agreement with Pacific Power Products to complete repairs to the 1994 Autocar plow/sander truck for an amount not-to-exceed $32,000, including the costs to sub-contract rear differential and fabrication costs, and appropriate funds. c~ Sponsored by; Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A CONTRACT WITH RBC CAPITAL MARKETS TO PROVIDE UNDERWRITER SERVICES FOR THE SALE OF BONDS FOR THE PRISON EXPANSION PROJECT, AND APPROPRIATING FUNDS FROM BOND PROCEEDS WHEREAS, the City of Seward and the State of Alaska developed a request for proposals for underwriting services for the pending sale of approximately $22.7 million in bonds for the prison expansion project; and WHEREAS, there were four responsive and qualified proposals received, and proposals were scored on the basis of four basic criteria, with bid price being assigned 20% of the overall points available; and WHEREAS, a review committee scored the proposals and awarded the highest score to RBC Capital Markets ("RBC"), and RBC also proposed the lowest overall price for underwriting services; and WHEREAS, the payment for underwriting services is entirely contingent on the project moving forward and bonds being issued, such that if bonds are not issued, the underwriting will not be reimbursed for their costs, but if bonds are issued, the cost for underwriting services will be reimbursed from the proceeds of the bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby authorizes the city manager to enter into a contract with RBC Capital Markets to provide underwriting services to the City of Seward for the issuance of approximately $22.7 million in lease revenue bonds for the purpose of prison expansion. Section 2. Funding in an amount not to exceed $136,300 is hereby appropriated from the proceeds of lease revenue bonds, with payment to the underwriter contingent on Seward City Council approval of the issuance of approximately $22.7 million in lease revenue bonds, and contingent on the actual issuance of said bonds. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28th day of July, 2008. Council Agenda Statement Meeting Date: July 28, 2008 Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Approval of Contract for Underwriter Services for Prison Bond Issue BACKGROUND & JUSTIFICATION: The City of Seward received four proposals from firms desiring to provide underwriter services for the pending sale of bonds for the prison expansion project. Proposals were received from Stone & Youngberg, Seattle Northwest Securities, Citigroup Global Markets, and RBC Capital Markets. All respondent proposals were found to be responsive and qualified. One additional firm declined to submit a proposal based on the small size of the anticipated bond issue (approx. $22.7 million). The proposals were reviewed by a committee of three, including: Don Grimes, financial advisor for the City of Seward; Deven Mitchell, Executive Director of the State of Alaska Municipal Bond Bank Authority; and Kristin Erchinger, finance director. The review committee reviewed and scored the proposals on four basic criteria: 1) financing plan and marketing proposal - 30%; 2) firm's understanding of the State credit and authorizing statutes - 30%; 3) qualification of team members assigned to perform engagement - 20%; and 4) fees for services - 20%. After scoring the proposals, RBC Capital Markets received the highest score, and they also offered the lowest total fee for their services. The table below summarizes the scoring of proposals: Firm Criteria 1 Criteria 2 Criteria 3 Criteria 4 Total RBC 30 27 19 20 9b Citi rou 25 20 16 15.3 76.3 SNW 20 20 15 14 69 Stone & Youn . 15 15 12 15.4 57.4 The total fee for underwriter services, including attorney fees and out-of-pocket costs, is estimated at $113,545. This fee will be based on the final size of the bond issue, and will equate to $5.002 per $1,000 bond. Therefore, we have provided a contingency of 20% to cover increases in the project cost based on CPI adjustments (as allowed for in the enabling State legislation), bringing the total authorization to $136,300. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: The total cost for underwriter services will be reimbursable from the proceeds of the bonds. The payment for underwriter services is entirely contingent on the project moving forward, which means that if the prison expansion project does not proceed, the 'ty will not reimburse the underwriter for their costs incurred in providing services for this bond issue. _ ~~~~a~ RECOMMENDATION: Approve Resolution 2008-~ awarding a contract for underwriter services to the firm of RBC Capital Markets, for an amount not-to-exceed $136,300, and appropriating funds. 1~ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE CONTRACT WITH MIKUNDA, COTTRELL & CO. TO REFLECT THE COST OF IMPLEMENTING NEW AUDITING STANDARDS, AND APPROPRIATING FUNDS WHEREAS, the Seward City Council approved athree-year contract with the independent auditing firm of Mikunda, Cottrell & Co. on February 26, 2007 in Resolution 2007-010; and WHEREAS, the contract allows for fees for the 2007 audit of $47,500 and for the 2008 audit of $49,500; and WHEREAS, the standard-setting board (the American Institute of Certified Public Accountants Auditing Standards Board) which oversees the auditing profession and defines the criteria by which auditors conduct independent audits, implemented a major revision of auditing standards for non-profits and governmental entities, requiring significant additional auditing effort aimed at evaluating an entity's internal control framework and environment; and WHEREAS, these new standards result in additional annual audit costs of 20% to the City of Seward, increasing the cost of the 2007 audit from $47,500 to $57,000, and for the 2008 audit from $49,500 to $59,400. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby authorizes the city manager to amend the contract with Mikunda, Cottrell & Co. by increasing the 2007 audit fees from $47,500 to $57,000, and by increasing the 2008 audit fees from $49,500 to $59,400. Section 2. Funds in the amount of $11,000 are hereby appropriated from the General Fund fund balance account no. 101-0000-3050 to the Audit account no. 101-1110-5110. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28th day of July, 2008. .~ ~~ Council Agenda Statement Meeting Date: July 28, 2008 Through: Phillip Oates, City Manager From: Kristin Erchinger, Finance Director ~~ Agenda Item: Increase in audit fees to reflect new federal auditing standards BACKGROUND & JUSTIFICATION: The City of Seward contracts with Mikunda, Cottrell & Co. ("Mikunda") to provide independent audit services on behalf of the City. The current contract with Mikunda was approved by Resolution 2007-010 on February 27, 2007, for the audit years ended 2006, 2007, and 2008. The contract reflects fees of $47,500 for 2007, and $49,500 2008. In December, 2007, Mikunda sent a letter to the City Council to explain new Statement of Auditing Standards which auditors are now required to implement when conducting an audit of a governmental agency, and the impact that those new standards were expected to have on upcoming audit fees. Some CPA firms were using these changes in auditing standards to increase costs by 40% to 50%. The letter to the Council explained that it would be difficult to estimate the magnitude of additional costs related to the new internal control standards, because each City maintains different systems, personnel, and controls. Upon completion of the audit, it was determined that the additional costs of auditing internal controls for the first year of the new standards is $9,500, representing an increase over the current contract of 20%. This results in a total charge of $57,000 for the audit for the period ended December 31, 2007. Given the magnitude of the increase, the audit fees for the 2008 audit are expected to be $59,400. The modified auditing standards did have a significant impact on the scope of the audit this year, requiring auditors to focus specific attention on reviewing all internal controls of the finance department, the accounting system, the human resources function, computerized accounting systems, inventory systems, banking and investment controls, payroll and accounts payable controls, personnel qualifications, etc. These new standards required more than 200 hours of additional audit prep time by the City staff, as well as a material increase in the scope of the audit far the audit field team. I have attached a copy of the letter that was distributed to the City Council in December, 2007, justifying the additional work required by the audit, and the corresponding need to increase fees. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: This resolution results in total annual audit costs of $57,000 for 2007, requiring an appropriation of $11,000. The 2008 Budget included an estimated charge for the audit of $46,000, and the original approved contract reflected a fee of $47,500. It will 1 amend the 2008 contract amount to $59,400, up 20% from the previously approved amount of $49,500. .~~}~,~,~!, ~ RECOMMENDATION: Approve Resolution 2008-~ authorizing an increase in the contract with Mikunda, Cottrell &. Co. for audit fees for 2007 and 2008, and appropriating funds. ~~ December 24, 2007 Honorable Mayor and City Council City of Seward P. O. Box 167 Seward, AK 99664 Ladies and Gentlemen: This letter is to discuss the new auditing standards and the impact it will have on our audit fees. In 2007, auditors will begin performing audits under new standards that represent the biggest change in auditing since the 1980s. These new standards will take us all back to an earlier time when auditing involved a more comprehensive review of business operations. Some CPA firms have used these changing audit standards as the basis for cost increases of up to 40% to 50%. At Mikunda Cottrell, we believe the proper integration of these new standards with our current audit approach will improve the quality of audit services without requiring price increases of this magnitude. We are opposed to these across-the-board increases and will instead determine price increases on aclient-by-client basis. Our goal is to limit the increase in fees as much as possible. Understanding the changes in auditing standards boils down to one simple question -What is an audit? Is a financial statement audit a task performed solely to render an opinion on a set of financial statements, or is there a broader purpose? With government agencies, the need for more comprehensive audits became evident in the 1970s when the social programs of the 1960s began to grow out of control. Governmental auditing standards were adopted that required financial statement auditors to also review internal controls and determine whether Laws and regulations were being complied with. In the 1980s, these concepts were expanded and applied to all entities receiving large amounts of federal funds, including non-profits, hospitals, and universities. From the 1970s through the 1990s, financial auditing in the corporate world headed in the opposite direction. To efficiently provide auditing services as our major corporations grew and became more complex, the CPA profession adopted auditing standards that narrowed the scope of financial statement audits and eliminated much of the internal controls testing. Risk-based ~3 Honorable Mayor and City Council City of Seward Page two audit approaches were developed under which account balances and transactions could be analyzed and audited for the sole purpose of rendering a financial statement opinion. The collapse of Enron and WorldCom shortly after the new millennium brought increased demands for expanded auditing of our publicly-traded companies. In 2002, Sarbanes-Oxley was adopted and required that audits of our publicly-traded companies be expanded to include a review of the internal control systems that feed information into the financial reporting process. Beginning in 2007, new auditing standards establish similar requirements for privately- 6eld corporations and other small businesses, including nonprofit organizations and governmental entities. The audits performed by Mikunda, Cottrell & Co. for 2007 will include expanded testing of our client's internal control systems. Under the analytical audit approach in place for the last 25 years, audit hours often remained unchanged from year to year and CPA firms were able to enter into long-term audit contracts that assumed a stable level of audit hours. The new internal controls approach will fundamentally change these assumptions beginning in 2007. The cost to review and evaluate internal controls, and the impact of this work on other audit procedures, will vary from audit to audit (and from year to year). Stability in the control environment will become a critical factor in determining audit costs. As a business experiences significant change, the cost to audit these evolving operations should be expected to increase. A significant level of change will not only require additional audit hours, but could necessitate increased involvement from the more experienced members of the audit team. If you have any questions regarding the content of this letter, please give me a call. We are very much looking forward to working with everyone at the City again. Sincerely, John M. Bost, Audit Director Mikunda, Cottrell, & Co. ~~ Sponsored by: Yoder Motion to Reconsider 2/13/2007 Reconsidered, Amended and Approved 2/26/07 >r CITY OF SEWARD, ALASKA RESOLUTION 2007-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A CONTRACT FOR EXTERNAL AUDIT SERVICES FOR THE YEARS 2006, 2007, AND 2008 WHEREAS, the City of Seward issued a request for proposals for external audit services in accordance with standard City bid procedures; and WHEREAS, two qualified and responsive proposals were received in response to the request for proposals; and WHEREAS, proposals were scored on the basis of four basic criteria (worth 100 points) and price (worth 60 points) for a total of 160 available points, where basic criteria included: 1 } understanding the scope of work; 2) firm's size and evidence of adequate planning and labor hours required to complete the work; 3) firm's experience with similar engagements; and 4) firm's and audit staff's technical qualifications; and ~'"' WHEREAS, Mikunda, Cottrell & Co. ("Mikunda") received the highest overall score, scoring 153.54 points out of 160 total points available, with Altman, Rogers & Co. ("Altman") receiving 148 total points, with Mikunda scoring the highest on each of the four basic criteria and Altman scoring the highest on the price criteria; and WHEREAS, cost is not the sole factor in the selection of the City's external audit firm, which is the reason that the four basic criteria listed above are assigned 100 of the 160 available points. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized and directed to execute an agreement with Mikunda, Cottrell & Co. in substantially the form as attached hereto, to provide external audit services to the City of Seward for 200b, 2007 and 2008, with two one-year options to extend at the sole discretion of the city council. Section 2. This resolution shall take effect immediately upon its adoption. ~. J CITY OF SEWARD, ALASKA RESOLUTION 2007-010 s PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 26~' day of February, 2007. THE CITY OF SEWARD, ALASKA Vanta 56afer, Mayor AYES: Valdatta, Thomas, Shafer, Bardarson NOES: Dunham, Amberg, Schafer ABSENT: None ABSTAIN: None ATTEST: .. _.1 ~ ~. JeariiLewis, C11i~IC / Cit~Clerk ` e~~ ° '~~!!Dr~ ~ , , / ~ , r /y (City Seal) . G,: s..rJ~~r'Oj~ .L: .,~, .~, v .V : .. ~ 1 ~.~'~ ~ `~ A F ~ ~ `~ ~r'~ v j l'1 \~ ~ oa R7 ® • ~T'~j gY ~ '• A • I ,pr1 ~ ~ ~~.r.i.~~ •.1.e~ ~ ,~ • • 4 W • t • rte` s ~ ~ i ~' ', V! ~ ~ i i ~ ~ ': , ~ ~~~~Iiilii~~~. J .~ Council Agenda Statement Meeting Date: February 12, 2007 From: Kristin Erchinger, Finance Director Through: Marvin Yoder, Interim City Manager Agenda Item: External Audit Proposals BACKGROUND & JUSTIFICATION: The City of Seward received two proposals for external audit services for years 2006, 2007, and 2008, with two one-year options to renew. Proposals were received from Altman, Rogers & Co. ("Altman"} and Mikunda, Cottrell & Co. ("Mikunda"), and both proposals were found to be responsive and qualified. One additional firm, KPMG LLP, declined to submit a proposal based on insui~icient resources to assume additional client workloads at this time. The proposals were reviewed by a committee of four, including: Marvin Yoder, Interim City Manager; David Squires, Fire Chief; Christy Terry, Executive Liaison; and Scott Ransom, Harbormaster. The review committee reviewed and scored the proposals on four basic criteria: 1) understanding of the scope of work; 2) firm's size and evidence of adequate planning regarding labor-hours required to complete the work; 3) firm's experience with similar engagements; 4) firm's technical qualifications and qualifications of individuals assigned to the audit. The reviewers awarded up to 25 points for each of the four criteria, for a total possible "criteria" points of 100. After scoring the proposals, the fee proposals were opened separately. There were a total of 60 "fee" points available, with the lowest-bidding firm receiving a1160 points. The other firm's score was based on a ratio of their fee to the lowest fee, multiplied by 60. This methodology was used in order to score the more subj ective portion of the proposals without knowledge of the bid price, to provide a more fair scoring process. There were 160 total points available in the scoring process. Mikunda received the highest overall score with 153.54 points, while Altman received 148 points out of a total possible 160 points. Attached is a spreadsheet summarizing the analysis of each firm's proposal. The score sheet indicates that Mikunda received the highest overall score, rating highest on the four basic criteria and lowest on the fee rating. Altman received the highest fee rating (coming in $2,000 to $2,500 lower cost per year) but scored lower on each of the other four criteria. The primary difference in the cost proposals appears to be the number of hours estimated to perform the audit. Altman's proposal estimates 369 total hours to complete the audit, reflecting an hourly rate of $116.53. Mikunda's proposal estimates 450 total hours, reflecting an hourly rate of $100.00. Given Mikunda's recent experience with the City's audit, it would appear that they have a better understanding of the time required to complete the audit, thus resulting in a higher estimate of hours. Following is an analysis of each firm's proposal: ~~ RESOLUTION 2007- Page Two Altman, Rogers & Co. This firm is an Alaskan based Certified Public Accounting (CPA) firm which performs more than 90 governmental and non-profit audits, representing 69% of their practice. The bulk of their governmental clients are smaller school districts and communities such as Kodiak, Bethel, Pelican, Hoonah, and Unalaska. The firm employs more than 35 people and has branch offices in Anchorage, Kodiak, Juneau, and Soldotna. The principals in the firm have experience auditing governmental entities, serve on the national Government Finance Officer's Association ("GFOA") review committees, and are qualified to perform the City's audit. Altman's three-year fee is $135,000, representing $43,000 for 2006 audit, $45,000 for 2007, and $47,000 for 2008. Mikunda, Cottrell & Co. This firm is an Alaskan based CPA firm which audits approximately 100 governmental and utility entities in Alaska including 9 of the 12 home rule cities (Seward is a home rule City). Mikunda is the only CPA accounting firm with a local Seward office. The bulk of their clients are school districts, utilities, and communities such as Soldotna, Kenai, Kotzebue, Homer, and Wasilla. They also audit the Kenai Peninsula Borough and KPB School District. The firm has eight partners and employs more than 50 people. Mikunda joined the McGladrey Network in 1997, becoming part of the fifth largest accounting and consulting firm in the United States. Mikunda's principals have experience auditing governments, serve on national GFOA review committees, and are qualified to perform the City's audit. Mikunda's three-year fee is $142,000 ($45,000 for 2006, $47,500 for 2007, and $49,500 for 2008). It is our opinion that Mikunda, Cottrell & Co. is the most qualified firm to perform the City's audit based on the outcome of the RFP process, their extensive list of larger governmental clients, and their familiarity and positive history with the City of Seward. This firm's experience with the City is expected to reduce the amount of staff time required to commit to the audit, especially in a year of anticipated critical staffturnover. While Mikunda's annual audit bid is slightly higher than Altman's, Mikunda is a local firm subject to "local preference" and their cost estimates are based on historical experience auditing the City. Thus, their bid includes 81 additional audit hours over Altman's. Mikunda's bid for 2007 is $45,000, and the 2007 Budget includes $48,000 to complete the audit. The auditors work for the city council rather than management. There are advantages to retaining a firm with significant Seward experience, and advantages to having a perspective from other experienced firms. Management believes that we can work well with either firm. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other; FISCAL NOTE: The 2007 Budget includes $48,000 for the audit, and both of these proposals come in under budget. Approved by Finance Department: RFC(~MMRNT~ A TTI~N Approve Resolution 2007- awarding a contract for external audit services to the firm of for the 2006, 2007, and 2008 annual audits, with two one year options to extend at the sole discretion of the city manager. ~~ City of Seward, Alaska City Council Minutes July 14 2008 Volume 37, Page CALL TO ORDER The July 14, 2008 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Clark Corbridge. OPENING CEREMONY Lieutenant Louis Tiner led the pledge of allegiance to the flag. ROLL CALL There were present: Clark Corbridge presiding and Willard Dunham Tom Smith comprising a quorum of the Council; and Phillip Oates, City Manager Jean Lewis, City Clerk ABSENT -Betsy Kellar Linda Atnberg Bob Valdatta Jean Bardarson CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Margaret Anderson spoke on behalf of theBoys and Girls Club. The Club needed extra funding or the possibility of closure in Seward. They were requesting $25,000 for the calendar year now, and $50,000 for ?0~9 to assure the club could sustain through 2010. Marianna Keil spoke about the budget. She wanted a comparison to what actual expenses were and more detail on the'reports. Dale Hoogland encouraged the council to attend the welcoming party for the Obihiro exchange students rriday, July 25, 2008. He requested to have a city representation present so Obihiro recognized that the citizens wanted the program continued. He looked forward to seeing everyone there. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson/Amberg) Approval of Agenda and Consent Agenda Motion Passed Unanimous ~~ City of Seward, Alaska City Council Minutes July 14, 2008 Volume 37, Page Resolutions 2008-059 and 2008-066 were removed from the consent agenda and placed on the regular agenda by unanimous vote. The following was added to the agenda: Discussion topic on energy and scheduling of a work session or special meeting. The clerk read the following approved consent agenda items: The June 23, 2008 regular and special city council meeting minutes were approved. Ron Long and Paul Tougas were re-appointed to serve on the Port and Commerce Advisory Board for a term to expire in July 2011. Resolution 2008-060, Accepting A Grant From The State Of Alaska DCCED In The Amount Of $1,750,000 For The Purpose Of Constructing The Japanese Creek Levee/Road. Resolution 2008-061, Accepting A Grant From The State Uf Alaska DCCED In The Amount Of $61,250 For The Purpose Of Fish Ditch Restoration. Resolution 2008-062, Accepting A Grant From The State Of Alaska DCCED In The Amount Of $195,000 For The Purpose Of Constructing . Waterfront Pavilion. Resolution 2008-063, Accepting The 2008 Volunteer Fire Assistance Grant (VFA) In The Amount Of $5,212, Authorizing The 10% Matching Funds From The Existing Volunteer Budget, And Appropriating Funds. Resolution 2008-064, Authorizing T>Ze City Manager To Execute A Grant Agreement Between The State Of Alaska And The City Of Seward For The Purpose Of Providing Public Access To The Seward Historical Sitc Inventory On The Seward Historic Preservation Commission Website And Approprianb I{'und5. Resolution 20.08-065, Authorizing The City Manager To Execute A Grant Agreement Between The Alaska Humanities Forum And The City Of Seward In The Amount Of $20,500 With A Required City Match Of $1,500 For The Purpose Of Celebrating Alaska's 50 Years Of Statehood, And Appropriating Funds. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards Mary Daniel and Marci Treadwell were introduced by Sister City Coordinator Debbie Bond as the 2008 Adult Exchange Citizens going to Sister City Obihiro, Japan. ~~ City of Seward, Alaska Ciry Council Minutes Jul 14, 2008 volume 37, Page Borough Assembly Report. Borough Assembly Representative Ron Long stated that they had the first of two public hearings rescinding a portion of an initiative from two years ago that would require 60 % of voter approval for capitol projects over one million dollars including design, engineering, construction which included any capitol projects funded by grants. This ordinance sought to remove the grant funding portion. City Manager's Report. Assistant City Manager Kirsten Vesel advised the city received a thank you card from the Nordic Ski Club for donating money and that the welcome party for the 2008 Obihiro exchange student program was Friday, July 25, 2008. The fire station apparatus floor repair went out for an RFP, and the city was in the process of completrg a U.S. Department of Homeland Security grant application. Vesel also noted the Mary Lowell Center was having an open house on Thursday, July 24, 2008. Other items mentioned were: ^ Harbor. Metco had finished placing rock in the northwest corner of the harbor to stop erosion, and the extension of the 50-ton travelift would be installed and completed next week. Melody Moline had accepted a position in he harbor and transferred from the Finance Department. ^ Library. Congratulations go to Librarian Patty Linville for having been designated as a Certified Public Library Administrator with the American Library Association. Ms. Linville was the first person in Alaska to receive such a designation. ^ New employees. Dwayne Atwood had been hired as the new administrative assistant in Community Development, while Christi Terry was now the Lull-time contract administrator for the city. 'Chris Murphy was hired as a c~rrectona.l officer, and Ken Brockman and Jennifer McCoy were hired as patrol officers. ^ Public Works. Fish ditch repairs were in the permitting stage and preliminary design work of Dairy Hill culvert project was forthcoming. Partial funding would come from the Seward/Bear Creek Tlood Service Area Board, and they and the city were partnering to seek a FEMA Flood Hazard Mitigation Assistance Grant for 2009. Scope of work preparation had begun for repairs to the Lowell Creek waterfall. The Water Department had been busy with dig proj ects, h}~drant repairs and ~tnprovements to various wastewater sites and inspections at the Long Term Carc Facility, and were still working with M.L. Foster on the Water Compliance Study. Community Development Director Bob Hicks spoke on the requirements he had found out about for the weathcri~ation`program. PUBLIC HEARINGS Ordinance 2008-016, Rescinding Ordinance 2008-001 And Retaining A Sales Tax Cap Of $500. Motion (Bardarson/Dunham) Enact Ordinance 2008-016 Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. ~w Ciry of Seward, Alaska City Council Minutes July 14, 2008 Volume 37, Page Marianna Keil asked the city council to rescind the sales tax cap increase ordinance, and put it back to $500. Assistant City Manager Kirsten Vesel stated this ordinance had been going back and forth for months, and it had last been requested to put another ordinance forward to rescind the sales tax cap increase in place, and have it remain at $500. Motion Passed Yes: Smith, Dunham, Bardarson, Amberg, Corbridge No: Valdatta NEW BUSINESS Resolution 2008-059, Clarifying Monthly And Quarterly Financial Reporting Requirements. Motion (Bardarson/Dunham) Approve Resolution 2008-05y` Vesel read the agenda statement which clarified the l~ pe, frequency and format of the reporting requirements for accounting reports given to the city council. The monthly and quarterly financial reports were defined in the resolution, and she recomm~;nded passage. In response to questions, Finanee Director Kris Erehinger stated the previous year actuals were currently listed on the reports and could be left on. Bardarson did not want to eliminate the narrative in the quarterly report. Corbridge also_lik~ed the narrative and did not want it eliminated. Amendment (Bardarson/Amberg) In the 3rd Whereas, after the words "written narrative" insert the words; "for monthly reports but retain for quarterly reports and eliminating the" into the sentence. Amendment Passed Main Motion Passed' As Amended Unanimous Unanimous Resolution 2008-066, Authorizing The City Manager To Enter Into A Purchase Agreement With Valley Power Systems For The Purchase Of Radiators And Exhaust Silencers, For A Total Amount Not-To-Exceed $515,788.00 And Appropriating Funds. (Laydown version) Motion (Dunham/Bardarson) Approve Resolution 2008-066 Vesel stated there was a Laydown version that clarified the total cost. She noted with costs C~ / FI Ciry of Seward, Alaska City Council Minutes July 14, 2008 Volume 37, Page increasing daily, the large ticket items for the generators needed to be purchased to realize cost savings for the project. There would be a better shipping rate and were asking to purchase one extra exhaust silencer to have on hand. Utility Manager Tim Barnum stated there were four radiators. Two new ones and two to replace. He was working to get the numbers down and fencing was included in the overall project. Motion Passed Unanimous Resolution 2008-067, Authorizing The Purchase Of Two 75 Horsepo`ti~er Engines For The City's 21' Boston Whaler In The Amount of $17,030, And Appropriating Funds Motion (Dunham/Amberg) Approve Resolution 2008-067 Vesel stated the need to purchase two Honda engines to have consistent parts. This would result in more efficient maintenance between city equipment. Vesel stated these were needed to provide adequate power to safely carry out tasks and prevent liability and prepare for emergencies during the busy summer season. She recommended approval. Harbormaster Kari Anderson said the funding would came front the cruise ship head tax budget. This was the soonest she could bring this matter before council, and felt it was imperative to purchase before the Salmon Derby in August. Anderson informed all motors would be 4-stroke Honda's to be consistent with parts with other vessels the city operated. Motion Passed Other New Business Items Unanimous A work session was scheduled for September 2, 2008 at 7:00 pm in the City Council Chambers for the Bird Efficiency Stu~~ . Tbc city council wished to receive a copy of the study one week prior to this hearing. A work session was scheduled for Tuesday, September 23, 2008 at 7:00 p.m. in the City Council Chambers on how best to address community economic issues. Discussion ensued on the topic of future energy needs and a work session was set for July 21, 2008 at 5:00 pm to discuss priorities, with a possible special meeting the next day. (This work session later changed to 7:00 pm and the special meeting was cancelled) INFORMATIONAL ITEMS AND REPORTS (No action required The Providence Seward Medical Center May 2008 Financials. COUNCIL COMMENTS ;-~, .:. Ciry of Seward, Alaska City Council Minutes July 14, 2008 volume 37, Page Vice-Mayor Dunham attended the Rural Electric Providers Association meeting on Thursday, July 10, 2008. The issue was deciding whether all utilities should come under one utility for power and distribution. He thought the Association needed to know if Seward would be participating now, and he recommended the City participate. The highway resolution had been passed by all but Homer and Seldovia. Dunham wanted the city to help with local energy needs. He stated the Crab Pot Restaurant had to close down for two days because of the vendors blocking his business along Adams Street over the Fourth of July weekend. He did not think this was fair and wanted vendors moved around next year. Valdatta complimented everybody on tending to their yards and the flowers around town looked nice. Smith noted the traffic jam on the 4th of July and recommended the pulice practice on that day for emergency responses going out of town. He thought any emergency Seward had would block the roads just like that. He hoped the sales tax cap increase would not be brought up again. Corbridge thought the effort that went into putlin~ on the 4th of July was incredible and he thanked the community. CITIZENS' COMMENTS Marianna Keil, stated the governor had funding for energy needs, and she thought the transmission line could be put in. She thought the cite could possibly go to the Y to buy power from Homer. Either way, Keil thought this was an opportunity to think big and settle for smaller. She informed the public that the legisiati- c website `spoke of other forms of energy assistance. Margaret Anderson, was in favor of raising the sales tax cap, but didn't feel now was the time with the high fuel prices and the borough gales tax just being raised. She thought the bed tax should be raised and ~~ould like to see a resolution for $25,000 for the Boys and Girls Club on the next agenda. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS -None ADJOURNMENT The meeting ~~ as adjourned at S :46 p.m. Jean Lewis, CMC City Clerk (City Seal) Clark Corbridge Mayor .~ Memorandum Date: July 28, 2008 To: Mayor Corbridge, City Council Members From: Jean Lewis, City Cler Subj: Seward Community Foundation Last January 28, 2008, the city council approved a $5,000 donation to the Seward Community Foundation by attached resolution and agenda statement 2008-006. The understanding at the time, and the wording on the resolution, reflected that this donation would initiate a Rasmuson Foundation 2:1 grant. Later, the Seward Community Foundation received clarification from the Alaska Community Foundation that municipal contributions would not receive the 2:1 match. Because of this clarification, the check has been put on hold to get council support to still retain the $5,000 donation. The City Manager provided an update with this information, and Margaret Anderson provided a council report clarifying this would not receive a Rasmuson Foundation match, but was still seeking council support to retain this donation. I am guessing of course, but have put this item on the consent agenda for your support and approval to release the check anyway. rJ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2008-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE FUNDS IN THE AMOUNT OF $5000 TO THE SEWARD COMMUNITY FOUNDATION TO PARTICIPATE IN THE 2007-2008 PILOT PROJECT DEVELOPED FOR COMMUNITY ASSET BUILDING, TO INCREASE THE CAPACITY OF LOCAL COMMUNITY ASSETS, TO CULTIVATE LOCAL PHILANTHROPIC LEADERSHIP AND FURTHER SUSTAIN LOCAL NONPROFITS IN THE GREATER SEWARD AREA WHEREAS, the Rasmuson Foundation and the Alaska Community Foundation have developed a 2008-2009 pilot projects available to small communities; and WHEREAS, the City of Seward has the opportunity to fully participate and begin their own Seward Community Foundation; and WHEREAS, the Foundation is developed for community asset building; and WHEREAS, the goal is to increase the capacity of local communities to create permanent assets, cultivate local philanthropic leadership and to further sustain local nonprofits; and WHEREAS, the application to participate is due on February 28, 2008; and WHEREAS, the Seward Community Foundation needs to raise $25,000 in 2008 and raise another $25,000 in 2009; and WHEREAS, the Rasmuson Foundation will match 2:1 ($50,000) of the first $25,000 for a total of $75,000 unrestricted endowment funds and provide a $5,000 grant to a local Seward project; and WHEREAS, the Rasmuson Foundation will match another 2:1 ($50,000) of the second $25,000 in 2009 for a total of $150,000 unrestricted endowment funds and provide an additional $5,000 grant for a second local Seward project; and WHEREAS, the Alaska Community Foundation will provide all administrative oversight for the Seward Community Foundation which will allow the community to begin a foundation without the expense of staff; and WHEREAS, all of the funds will directly benefit the community of Seward; and WHEREAS, the City Council contributing $5,000 to the ignition $25,000 will help the Seward Community Foundation qualify for the initial Rasmuson Grant. `' CITY OF SEWARD, ALASKA RESOLUTION 2008-006 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Funding in the amount of $5,000 is appropriated from the city council contingency fund account number 101-1110-5690 to the Seward Community Foundation to participate in the 2008 Alaska Community Foundation pilot project. Section 2. This contribution will help initiate the Seward Community Foundation that will qualify for a Rasmuson Foundation 2:1 grant. Section 3. All of the funding of the Seward Community Foundation will directly benefit the community of Seward. Section 4. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 28th day of January, 2008. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: Dunham, Valdatta, Bardarson, Amberg, Smith, Kellar, Corbridge NOES: None ABSENT: None ABSTAIN: None ATTEST: Jean Lewis, CMC City Clerk (City Seal) ~.~~ ~~ Council Agenda Statement Meeting Date: January 28, 2008 From: Phillip Oates, City Manager .~. . Agenda Item: Seward Community Foundation BACKGROUND & JUSTIFICATION: The Alaska Community Foundation is a nonprofit public charity promoting personal philanthropy and providing financial management, strategic development and donor development services to communities, organizations and donors across Alaska. The Rasmuson Foundation and the Alaska Community Foundation have started a 2008-2009 pilot project developed for community asset building. The goal is to increase the capacity of local communities to create permanent assets, cultivate local philanthropic leadership and further sustain local nonprofits. Seward can participate in this pilot project and start their own Seward Community Foundation. In order to participate, Seward must raise $25,000 and complete the application by February 28, 2008. In return the Rasmuson Foundation will match these funds 2:1 for a gift of $50,000 and a total of $75,000 unrestricted endowment funds. In addition, the Rasmuson Foundation will award another $5,000 grant to a local Seward project. In 2009, the Seward Community Foundation can raise another $25,000 and the Rasmuson Foundation will again match these funds 2:1 for a gift of $50,000 and a total of $150,000 unrestricted endowment funds. If we manage to raise the entire $150,000, the Rasmuson Foundation will provide another $5,000 grant for a local Seward project. A local Board will be established to manage the Seward Community Foundation grants and educate the community about local philanthropic leadership. The Alaska Community Foundation will provide all administrative oversight for the Seward Community Foundation. This allows the Seward Community Foundation the ability to fully function with the expense of a staff and administrative costs. The funds are then thoughtfully invested and management by the board of directors of the Seward Community Foundation. Separate funds can be developed to include designated and non designated funds. Donors will have the ability to specify what they want their funds to be used for or allow the Board to use their best professional judgment to manage and grant funds to local community projects. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: Funding in the amount of $5,000 is available from the city council contingency fund. Approved by Finance Department: ~~ RECOMMENDATION: Approve Resolution 200- CP Appropriating $5,000 from the city council contingency fund account number 101-1110-5690 to the Seward Community Foundation to participate in the Rasmuson/ Alaska Community Foundation 2008-2009 pilot project. ~, CITY OF SEWARD Budgeted Summary Departmental Expenditure Report For Month Ended May, 2008 (Through May, 41.7% of year has expired) Through May Actual YTD Budget FundlDepartment: 2007 2008 Variance Budget Variance General Fund: General Government: Mayor/Council $ 122,185 $ ]03,987 $ (18,198) $ 121,802 $ (17,816) Legislative 23,576 21,215 (2,361) 34,437 (13,222) Legal 43,003 34,333 (8,670) 56,250 (21,917) City Manager 146,043 149,774 3,731 162,303 (12,529) MIS 78,769 98,411 19,643 84,544 13,867 City Clerk 84,878 86,740 1,862 95,308 (8,568) Finance 268,337 257,603 (10,733) 263,290 (5,687) Community Development 65,693 90,486 24,793 133,183 (42,697) General Services 19,792 36,651 16,859 147,501 (112,434) Contributions 85,000 94,443 9,443 72,119 22,324 Total General Government $ 937,276 $ 973,643 $ 36,369 $ 1,170,737 $ (198,679) Annual Annual % of Budget Budget $ 292,325 35.6% 82,648 25.7% 135,000 25.4% 389,526 38.5% 202,906 48.5% 228,739 37.9% 631,897 40.8% 319,640 28.3% 354,000 10.4% 173,085 54.6% $ 2,809,766 34.7% Public Safety: Police $ 607,006 $ 613,612 $ 6,606 $ 648,242 $ (34,630) $ 1,555,780 39.4% Jail 184,239 204,553 20,314 220,454 (15,901) 529,090 38.7% Animal control 26,729 26,472 (257) 33,617 (7,145) 80,680 32.8% Fire 211,786 209,883 (1,904) 268,616 (58,732) 644,677 32.6% Engineering & Construction 81,346 27,495 (53,851) 34,220 (6,725) 82,127 33.5% Building Inspection 42,234 53,277 11,043 58,646 (5,370) 140,751 37.9% Total Public Safety $1,153,340 $ 1,135,292 $ (18,049) $ 1,263,795 $ (128,503) $ 3,033,105 37.4% Public Works: Roads & Streets $ 344,858 $ 447,028 $ 102,171 $ 383,941 $ 63,089 $ 921,456 48.5% City Shop 181,795 121,134 (60,661) 105,478 15,656 253,147 47.9% Municipal Building 108,048 107,162 (885) 122,524 (15,360) 294,056 36.4% Total Public Works $ 634,701 $ 675,324 $ 40,625 $ 611,943 $ 63,385 $ 1,468,659 46.0% Parks and Recreation $ 393,799 $ 405,099 $ 11,300 $ 486,130 $ (81,031) $ 1,166,711 34.7% Library $ 151,261 $ 150,268 $ (994) $ 157,145 $ (6,877) $ 377,147 39.8% Debt Service $ 151,892 $ 207,050 $ 55,158 $ 274,275 $ (67,226) $ 658,261 31.5% Total General Fund $ 3,422,269 $ 3,546,676 $ 124,409 $ 3,964,025 $ (418,931) $ 9,513,649 37.3% Harbor Enterprise Fund $1,438,158 $ 1,473,662 $ 35,504 $ 1,536,906 $ (63,243) $ 3,688,574 40.0% Parking Enterprise Fund $ 35,843 $ 32,823 $ (3,020) $ 158,463 $ (125,640) $ 380,311 8.6% SMIC Enterprise Fund $ 483,588 $ 446,929 $ (36,659) $ 475,164 $ (28,235) $ 1,140,394 39.2% Electric Enterprise Fund $ 3,560,424 $ 3,436,080 $ (124,343) $ 3,847,746 $ (411,666) $ 9,234,590 37.2% Water Enterprise Fund $ 320,386 $ 400,642 $ 80,256 $ 612,726 $ (212,084) $ 1,470,543 27.2% Wastewater Enterprise Fund $ 292,232 $ 322,384 $ 30,152 $ 410,161 $ (87,777) $ 984,386 32.8% ~~ CITY OF SEWARD Budgeted Summary Revenue Report by Fund For Month Ended May, 2008 (Through May, 41.7% of year has expired) Through May Annual Actual YTD Budget Annual % of Fund 2007 2008 Variance Budget Variance Budget Budget General Fund $ 2,095,723 $ 2,565,859 $ 470,136 $ 3,981,534 $ (1,415,675) $ 9,555,681 26.9% Harbor Enterprise Fund $ 1,140,548 $ 1,062,711 $ (77,836) $ 1,130,641 $ (67,929) $ 2,713,538 39.2% Parking Enterprise Fund $ 36,463 $ 43,753 $ 7,290 $ i 12,008 $ (68,255) $ 268,820 16.3% SMIC Enterprise Fund $ 351,250 $ 337,865 $ (13,385) $ 354,595 $ (16,730) $ 851,029 39.7% Electric Enterprise Fund $ 3,910,1.50 $ 3,809,645 $ (100,505) $ 4,101,941 $ (292,296) $ 9,844,659 38.7% Water Enterprise Fund $ 385,762 $ 359,090 $ (26,672) $ 455,113 $ (96,023) $ 1,092,270 32.9% Wastewater Enterprise Fund $ 410,791 $ 403,798 $ (6,993) $ 436,075 $ (32,277) $ 1,046,580 38.6% ~-' ~~ g:58 AM DET OPS Providence Health & Services CTR 110 - MGD - pROV SEWARD MTpousands) 712112008 7121108 cQ 9:58 AM erations (~ Run Date - Detail Stat Reported s of 3une 2008 Last Year % Variance Varia~p Ads Acts gud~ ...~----- 616 (34.3°00) 717 (43.5%} 2,635 (2.410} % Variance 405 2,687 (4'3°~) 710 (2.4°l0) evenues: 2,572 (5.8°~} 026 02°~ Act.-~ ~ MTV Eud_~ t MTV ~------- MTV Gross Service anent 693 736 (5.2°k) 3' 10.3°/0- 0 Acute Care-©utp 3,199 78 148 6'1 ~ Acute Care- anent 3,032 110 {21.8%) 6.2/0) 86 39/ 157 550 { 00 Primary Ca~are ___- ; - 07 65 516 121 23.1 o Long term 8.910 _____-------'" 545 530 ~ 1.6%) Homecare & Hospice ~ 447 447 9 19 Housing & Assist. living 132 (0.8%) 13 _ ____.__._-- Total Gross Service Revenues 13.1°l0 _ - ~---------- 0.9°/0 133 153 _ 10.4% 1,368 ___--•-- ions: 965 (33.3%) 1 3 0808 ___------ Rev nue Deduct 1,066 18.9°l0 21 o Charity Care 865 23 (21.7 9) 252 11.9% 34 67.6 /o id Charity id 28 2.9 l0 _-.-----~` 4.5°!0 11 _ Medics 1,370 ~._-- o 18.9% Medicare & Medics 282 ~ 13.7°/0 _..------- (3.810) 185 Negotiated Contracts 1,516 ~ 5,695 . 150 - ~ 95 33 _ 6 58 24.1 % Other 485 ~ _ - _ Total Deductions 72 283 ~ Net gervice Revenue _ _ 5.2% 239 8 5.210 _ 1.1 °l0 ~ 3.8% ~ Premium Revenue g1 ~ 7.5°!0 6,025 - r Rental and EducaReV ~ueenu ~ -_ 33.3°!o Other Operating Revenues - _ ~ Total Net Operating - 10 ~ ~ - ~, ~ ~ -------~`- Ex n es from O erations: enseS (2.6%) 2.9°l0 3,193 (22.4°l0) T~ - _ purchased and Healthcare Exp 8,374 825_ _ p erations: 3,275 1 016 0.6% - Other Ex enses Pram 1,010 _ - 284 (21.1 °lo) 3 2%) Salaries & Wages 36 295 (16.6°00) 1040 (13.1°l0) 559 { ' 0 Emp<oYee Benefits 344 950 (23.810) 198 94.4 /o 153 169- 9'5~_ ProfessronalFees 1,176 171 93.6°l0 _ 0) Supplies 11 62 87.1°l0 401 (0.7°l0) 71 52 (27.210) Purchased Service 8 357 (13.2°!0) 158 ( 0 Qepreciation 404 25.0°/0 20~ 28 70.0% Interest and Amortization _ . 17.5% ~ 6.1°l0 10 ° Bad Debts 255 442 1.2% ~ 6.1°!0 74 66_ (12'11°) Healthcare Taxes 5 ~ 1,2°l0 354 167.8°l0 0 Other Expenses O rations 8,519 ~ 127.3°/0 36 5.60 Total Other Exp from a Pe s 948 __._--5----~ 3 (66.7°10) 38 _^----- 4.0 l0 O rating Exp from OpS (50.0°/0) 169.8% 1,121 ,_._.,~ 4.0 /0 2 0 351 -~ -_~-f-`- 1078 ~-~-~ Excesslof R v Over Exp , . _._S___~ 1 128.2 /o 3 2 ~ 947. 415 Non-Operating Gain (Loss) nses o Excess of Revenues Over x 22 ~ Other Activity-Unrestri neUR Net Assets -~-- - ~- Increase (Decrease) 9:58 AM 8AL_SHT ~1: W 7!21!2008 g:58 AM PRELIM -Run Date - 7I21/OS @ ASSETS Ga hn~ Equivalents System Pooled Gash Temporary Investments Assets Held Under Securities Lending Accounts Receivable, Net Affiliate Receivable Premiums Receivable Other Receivables at Gost Supplies Inventory Other Current Assets Current Port. of Assets-Use is LTD Total Current Assets Assets Whose se is Limited: Board Designated C { hrrrai Furnposets ants Funds Held fad Trust Funds Gift Annuity Trustees Funds Held by Non-Current Assets Limited as to Use .+.• Plant & Egui meet: r"' " Plant & Equipment Gross Property. reciafion less: Accumul P{a ~~ Equipment Net Property, Unam-'"'d Financing Cost lnieraffiliate Note t ~ investments) Other (Ind. Long- Total Other Assets Total Assets Providence Health & Services 110 - MGD - PROV SEWARD MED CTR Balance Sheet (in Thousands) Reported as of June 2008 June 2008 pace Last Year Actual 34 287 2,025 1,449 16 128 ~ 53 2,119 1,917 164 38 1 ~ 38 107 107 11 21 96 86 LIAgILIT1ES ~ NET ASSETS r„rrent ~ iabilities: Accounts Payable Accrued Compensation Affiliates Payable encies Payable to Contractual Ag Deferred Revena d Mediaa~ C a ms iums Liability for Unp Liability for Risk-Sharing Liiabilities Under Securities Lending Other Current Liabilities Short-Te~'+r Debt Ted Debt Current Portion of Long- Total Current Liabilities Lon -Terri Debt: Master Trust Debt Loans from Affiliates Other Long Term Debt Other Long Term Liabilities Total Liabiiibes 3 2 051 Net_ Assets' Unrestricted Temporarily Restricted permanently Restricted Total Net Assets Total Liabilities and Net Assets June 2008 Deceml„bast Year Actual 172 213 656 750 26z 26s 1,927 826 3,111 1'964 255 137 3,366 2,101 (997) (56) 997 ~ _~__~'369 ----- ~1_ Memorandum Date: July 20, 2008 To: Mayor Corbridge, City Council Members From: Jean Lewis, City Cler Subj: New code language for "Seward's Financial Disclosure" form if it is voted in by residents Attached is a memo and proposed language to redefine our conflict of interest and financial interest sections of the code. Please read through and see if this appears to be on track with what you would like to see added into our city code. Since it is getting late, and our attorney has been on vacation, I am providing this to you early and will put it in the July 28 council packet along with a quick discussion topic for you all to vet any ideas or suggestions. <~- Memorandum Date: July 28, 2008 To: Mayor, City Council Members From: Jean Lewis, City Cler Subj: New Financial Disclosure, Conflict of Interest chapters for the City Code On May 12, 2008, the city council voted to approve the new "city disclosure form" IF the voters vote to exempt ourselves from the state requirements. These suggested changes enhance the definitions of financial interest and could assist the public in their approval of Proposition #1. Attached is proposed language to add penalties for the new use of the city financial disclosure form if voters were to approve Proposition # 1 at the October 7, 2008 election. Since revisions to conflict of interest have been requested by prior councils, this has also been addressed and presented. Some of the changes from our code are listed: ^ A $300 figure has been added as a definitive starting point for conflict of interest. ^ Definitions of what a "financial interest" is was added. ^ Wording of "pecuniary gain or loss" was added. ^ Ex-parte contact and the appearance of impropriety were addressed. ^ More detail on the procedure for declaring conflicts and how to override the Chair. ^ Wording was added at the end on state statute applicability. ^ Addressed Boards & Commissions also. ^ Added penalties, enforcement and procedures. (~10 suggested fines were from APOC regs., and some other ideas from other city codes.) ^ Tried to make conflict of interest changes, but still minimal enough to not have to change the language of the Charter, 3.5(1) which takes a vote of the people. The Charter states: No member of the council may vote on any question upon which he has a substantial director indirect financial interest. Otherwise, each member of the council shall vote on each question before the council for a determination, unless excused therefrom by the affirmative vote of all remaining members able to vote on the question. If a question is raised under this section at any council meeting, such question shall be determined before the main question shall be voted on, but the council member affected may not vote on such determination What do you think? Would you like all of this added into the code? During discussion of this topic, the clerk will receive your direction whether to put this into final ordinance form, send to the attorneys, and then have ready for introduction, IF the voters pass the proposition. This ordinance change could be put on an agenda in late October, and still requires final review by the city attorney. ~J Chapter 2.03 Financial pisclosure 2.03.010 Exemption from AS 39.50 state financial disclosure laws A. At a municipal election held on October 7, 2008, the voters of the city approved a proposition that exempted the city from the requirements of Alaska Statute 39.50 State of Alaska Public Official Financial Disclosure Law relating to disclosure statements and conflicts of interest, and established their own form and the following local guidelines. B. A "municipal official" or "appointed officer" is defined as any candidate or existing member of the Seward City Council, the Seward Planning & Zoning Commission, and the City Manager. These persons must file a financial disclosure form provided by the city disclosing their business interests and income sources. 2.03.015 Report_of financial and business interests A. The city manager and a candidate for elective municipal office shall file a financial disclosure statement using forms substantially the same as the Alaska Public Offices Commission Financial Disclosure Statement, provided by the city and approved by resolution. The forms will be signed under oath with the city clerk, at the time of filing a declaration of candidacy for elective or appointive office, and for the city manager upon hire. B. Each municipal official and the city manager shall file a financial disclosure statement using forms substantially the same as the Alaska Public Offices Commission Financial Disclosure Statement provided by the city, of income sources and business interests with the city clerk, no later than March 15 of each year that office is held. 2.03.020 Refusal or failure to disclose information reauired A. If a candidate fails or refuses to file the statement required by section 2.03.015, the candidates's filing application shall be refused, or if previously accepted, shall be returned and the candidate's name shall be withheld or removed from the ballot. B. A person failing or refusing to comply with the requirements of this section shall forfeit the nomination and shall not be seated or sworn to the office for which this person was a candidate. C. A person who refuses or knowingly fails to make a required disclosure of information as provided in this chapter, or who files a statement containing false or misleading information, knowing it to be false or misleading, shall be punished by a fine of not more than three hundred dollars, plus any surcharge required to be imposed by AS 29.25.072. 2.03.025 Penaltyassessments for late feline A. A disclosure statement is delinquent if not received by the City Clerk's office on or before March 15 annually, or if not received by any other deadline as prescribed. B. A civil penalty of $10 a day will be assessed for each day the delinquency continues ~~ Chapter 2.04 Conflict of Interest 2.04.005 Conflicts of Interest A. A city council member or Mayor with a direct or indirect substantial financial interest in an official action to be taken by the council, has a conflict of interest. B. A member of the council may not vote on any question in which the member has a direct or indirect substantial financial interest. Substantial financial interest will bedefinedas anything over $300. C. Any voting member of a city board or commission with a direct or indirect substantial financial interest in any matter before the board or commission has a conflict of interest. D. No city official or employee may testify before the city council or a city board or commission without first disclosing any financial interest which the official or employee has in the subject of the testimony. A city employee or a city official other than a member of the city council may not participate in an official action in which they have a direct or indirect substantial financial interest, as defined above. 2.04.010 Financial interest definitions In this chapter, unless otherwise provided, financial interest can also include but not be exclusive to: A. A direct or indirect substantial financial interest in an official action means a financial interest that could be affected by an official action, which might reasonably result in a pecuniary gain or loss exceeding $300. When the pecuniary value of a financial interest is not apparent on its face or is otherwise at issue, the Mayor or other presiding officer will make the determination of whether or not it constitutes a direct or indirect substantial financial interest in accordance with this chapter. B Other financial interest could include: 1. any financial interest of an immediate family member including involvement or ownership of an interest in a business including property ownership, professional or private relationship that is a source of income from which the person has the potential for pecuniary gain or loss. 2. any affiliation with an organization in which they have an ownership interest, contractual interest, hold a position of management, or is an officer, director, trustee, or the like. 3. A financial interest does not include: a) affiliation with an organization solely as a volunteer or club member. b) any personal or financial interest of a type which is shared in common with all other citizens or a large class of citizens. c) city paid remuneration for official duties or city employment. 2.04.015 Other Items for Disclosure A member of the council should disclose any interest that could give the appearance of impropriety to the public. A member of council should disclose any ex-pane contact that could give the appearance of impropriety to the public. These disclosures must be presented to the presiding officer prior to the beginning of debate on the question for a ruling by the Mayor under the conflict of interest chapter 2.04. 2.04.020 Procedure for declarin A Mayor, City Councilmember or Board & Commission member, with a direct or indirect substantial financial interest or other disqualifying conflict of interest under section 2.04.010, shall declare to the body as a whole prior to the beginning of debate on the question. The presiding officer shall rule on the request. If a conflict of interest is declared, the conflicted member is excused from participation and will remove themselves from the dais. Any Councilmember or Board & Commission member may move to disqualify another member if they do not disclose or disqualify themselves. ~,~ 2.04.025 Governing body may override A decision of the Mayor or other presiding officer under this section may be overridden by "appealing the ruling of the Chair." A majority vote of the body can override the original decision by the presiding officer. 2.04.030 Due Process, Disciplinary Action A. Any person who believes that a violation of any portion of this chapter has occurred may file a complaint in writing with the city manager or the city council. However, nothing in this chapter shall be construed to prevent complainants from instituting direct legal action through the appropriate judicial authority. A complainant who is also an employee or official shall be protected from any official acts of retaliation for filing a complaint that has a reasonable foundation. B. The complaint must specifically state why they feel a violation has occurred and be accompanied by any pertinent facts. C. All written information is presented to the city council as an agenda item. D. City council makes a motion to direct the city manager, city attorney, or an independent legal counsel to investigate facts as to whether a violation exists or not regarding the actions of the city council member in question. E. The facts are assembled in writing, and if justification exists, the city attorney writes an opinion on the presented facts from the investigation. F. If evidence presented shows cause, the city council shall consider a motion to place the intended action on the next agenda, along with a hearing to provide the council member in question the opportunity to present his/her side of the cause. G. At the next regular meeting or at a special meeting, a properly noticed public hearing shall be conducted. The hearing officer responsible for conducting the meeting would be the mayor. The council member in question may speak to the issue and present others who will speak to the issue. Any person who speaks on anothers behalf is subject to questioning by the city council. H. The city council must make a motion to censure, reprimand or institute other disciplinary action with reference to the reason, or make a motion of no official action necessary in the public interest. I. Any Board or Commission member who violates this chapter may be subject to removal by the city council as stated in the Seward Charter 2.11. 2.04.035 Enforcement and Penalties A. The city council shall have the sole authority for the enforcement of this chapter and shall ensure that a determination of the validity of a complaint is made within 30 days after receipt of the complaint. B. The city council may direct the city attorney to investigate or prosecute any apparent violation of this chapter or it may employ or appoint any qualified attorney to investigate or prosecute any violation or series of violations by one or more persons of this chapter. C. A finding that any public official or employee has violated any provisions of this chapter shall constitute a cause for reprimand, censure, suspension, or other disciplinary action as may be appropriate. D. The city council may elect not to prosecute an employee or official whose conduct is believed to constitute a violation of this chapter if it is determined that prosecution of the employee or official action is not necessary in the public interest. E. Violations that result in a finding of censure, suspension or other disciplinary action may be grounds for recall under SCC 4.20.015, provided due process as stated in 2.04.030 has been followed. 2.04.050 Application of state statutes Nothing in this chapter is intended to curtail, modify, or otherwise circumvent the application of the Alaska statutes to any conduct involving bribery or other offenses against the public administration. ~O ~~ 2 0 O ~ August 2008 September 2008 g S M T W T F S S M T W T F S _- __ -- 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 91011.1213 10 11 12 13 14:15 16 14 15 16 17 18 19 20 17.18.19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 Monday _ _- _ Tuesday __ Wedriesda Y Thursda_y__ __ ___ Friday --- ---- ~ - .I- __ _ :_ _ _ -~- _ ~ -August 4 _ - ___ - - _- __ ~ 5 ~ - - - ~ ___ - _ [ 7:30pm P&Z Meeting ~ 12:OOpm PACAB Meeting ' 7:OOpm City Council Meeting 7:OOpm City Council Meeting 1' _ 1 __ - ~- --- - -- 1 6:30pm ~ ~ 12 OOpm~~~ ork ;; 9.OOamSocial Security ..: ~ Rep 6:30pm Historic Preservation Meeting __ _-__ - - _ --- -- -- ---- -_ 2 ~_ _ ---- ._ 28' -_ _ _ '"°"" ""'"OY 1 ~ (~ 7/23/2008 11:16 AM ~~ai~~~ ~w~ic 7/23/2008 11:22 AM