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HomeMy WebLinkAbout01242011 City Council Minutes City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 508 CALL TO ORDER The January 24, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance to the flag. ROLL CALL There were present: Willard E. Dunham presiding and Marianna Keil Jean Bardarson Vanta Shafer Bob Valdatta Ristine Casagranda comprising a quorum of the Council; and Phillip Oates, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy Clerk Cheryl Brooking, City Attorney ABSENT — Tom Smith CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Scott Seabury introduced himself as the Planning and Zoning Commission applicant on the council agenda tonight. He knew of city's trouble keeping the commission full and felt it was time to step to the plate. Dan Seavey spoke in support of the library bond issue and hoped the council would have a unanimous vote on the bond resolution before the council tonight. He thanked Keith Campbell and the committee for their efforts. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda Council added the following item under new business: Discussion on researching other funding options for the library museum project. lisar Motion Passed Unanimous City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 509 The clerk read the following approved consent agenda items: The January 10, 2011 Regular City Council Meeting Minutes Were Approved. Appointed Scott Seabury to the Planning and Zoning Commission for a term to expire in February 2012. Appointed Vice Mayor Jean Bardarson to collect City Manager and City Attorney evaluations for the March council meetings. Non Objection for the liquor license renewals for the American Legion, The Ivory Cove and Christo's Palace. Resolution 2011 -004, Accepting A Rasmuson Tier II Grant Matching Grant In The Amount Of $500,000 For Construction Of The Library Museum. Resolution 2011 -007, Retroactively Amending The 2010 Budget To Record Expenditures Of $138,285.65 Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees Retirement System Liability, Per HB300. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A Certificate of Memoriam was read for Oscar Watsjold. City Manager's Report, City Manager Phillip Oates stated the City Council and representatives from the Alaska Railroad would be meeting Thursday, February 4, 2010 at 2:00 p.m. in the Council Chambers. He introduced Brenda Ballou as the new Deputy City Clerk and announced Michelle Weston had been hired as the new Assistant City Manager /Community Development Director. The City Manager reported the Seward Fire Department received a 2009 Assistance to Firefighters grant and have opened purchase orders to Motorola and REVL Communications systems for $ 41,126.52 and $12,190 respectively to make these purchases. The grant was for updating and replacing radios and communications equipment and system. In the Harbor, Shoreside Petroleum delivered 420,000 gallons of fuel across the North Dock to their holding tank at the Seward Marine Industrial Center earlier this month. Oates thanked all of the volunteers and jumpers who made this year's polar bear jump a success. The City was working on a proposal to submit to the Exxon Valdez Oil Spill Trustee Council for a vessel wash -down pad for SMIC. A resolution in support of this project would be brought to the February 14, 2010 City Council Meeting. Repairs to the south face of T -Dock would begin this next week. Two pilings and City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 510 a broken stringer were damaged by a transient vessel this summer. Harris Sand & Gravel would be completing this work in conjunction with the Z float project. In the Police Department, officers were dispatched to a 911 call reporting a burglary in progress at the Polar Seafoods Plant located on Morris Avenue on January 17, 2011. Officers responded to the area as the suspect fled the scene after being confronted by an onsite employee who was residing at the Plant. As the investigation developed, the suspect turned himself into authorities and confessed. City Animal Control Officer Jennifer Carrick has advised that she would be moving out of Seward at the end of February. The Police Department were making steps and moving forward to have a new contractor in place with little or no disruption to the services provided there. Jennifer's passion and commitment would be greatly missed. In Community Development, air quality monitors had been successfully installed at three locations and quality samples were now being gathered every six days. The monitoring began on January 15 and was scheduled to continue for 12 months. The air monitors were positioned at the Seward Community Library, the Public Works lift station along Ballaine Boulevard and Seward Mountain Haven. The January 25 Planning and Zoning Work Session would include more review of proposed updates to Title 15; specifically, the Commission would be finalizing its review of the Land Uses Allowed Table. In Public Works, the Lowell Creek Bridge was completed in December. The City received an extension from FEMA which allowed full reimbursement for the bridge construction/repair. An underground storage tank was discovered by Central Environmental Inc. during the demolition of the library /museum site structure at 235 6 Ave. It was estimated to be 300 plus gallon heating oil tank. There appeared to be some contamination. The contractor lined the side wall with poly and backfilled it as a safety precaution to prevent further contamination. Oates gave updates on several projects, including the water tank, fluoridation, the US Coast Guard building relocation, IMS dock improvements, the Fish Ditch, and various grants. Few freeze ups were occurring with residential water lines- warm weather may increase occurrence of freezing pipes. Crews had been assisting with minor maintenance of equipment, cleaning storm drains, replacing signage, started planning for summer projects already (to include drainage ditch maintenance, clearing R.O.W.'s of brush). The department hosted a city -wide OSHA voluntary compliance visit to conduct "workplace noise assessment" and would do follow -up with recommendations for PPE (personal protective equipment) needed to reduce hearing hazards. Staff was completing a request for proposal for remaining storm surge work (Lowell Pt. Road and two SeaLife Center areas) to include engineering and project management. Oates responded to questions regarding the upcoming Alaska Public Office Commission Hearings on February 2 and 3, 2011 and the energy efficiency of the new Library Museum building. City Attorney's Report, Cheryl Brooking stated from November 21, 2010 through January 20, 2011, the attorney's provided advice on ordinances and resolutions, the proposed library museum project, contracts, possible funding mechanisms for SAAMS, documents for the Community Health Center, administrative matters such as employment, personnel, land use questions, platting and code enforcement. On the North Forest Acres Levee project, an extension to February 10, 2011 was filed City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 511 for the appellant to provide appeal language. so as of now they were in a holding pattern. They also worked with the Harbor on compliance issues, leases, and reviewed shiplift compliance concerns for Seward Ship's Drydock. The attorney's also assisted the Electric Department on utility rights and the formation of ARCTEC. Mayoral Report, Mayor Willard E. Dunham stated the largest activity was getting federal and state requests lined out. He spent time last week in Kenai for an industrial outlook forum sponsored by The Alliance, the City of Soldotna, and the Kenai Peninsula Economic Development District. He reported the coal business appeared to be busting open on the peninsula. Speaker Kevin Banks of the Division of Oil and Gas was adamant about making the permitting process smoother. Marathon Oil was looking for gas reserves west of Swanson River, drilling holes and if gas was found they would apply for permitting. The Alaska Power Association would meet in Juneau February 15 and 16, 2011. Bardarson, Dunham and Oates met with representatives from the Coastal Villages last week. He noted the passing of Neva Egan and complimented the Fire Department for the outstanding memorial service for Oscar Watsjold. Other Reports, Announcements and Presentations A presentation on the transmission line repair was given by Ed Jenkin of Chugach Electric. PUBLIC HEARINGS Joint Public Hearing On Ordinance 2010 -009 and Resolution 2010 -130. .. Linda Corbin, spoke in support of the sales tax ordinance before the council tonight. She felt this was an opportunity to do something positive for the community and our quality of life. Iris Darling, was not against the library museum project. She was in opposition of the two tax increases on the agenda tonight. Darling felt the project should be scaled back and she did not want to drive the tourism business away. It was too big of a project for Seward right now. Kim Hughes, wholeheartedly supported the library museum project and supported the seasonal sales tax ordinance. It made the most sense, fiscally, she felt. As a business owner, she did not think a sales tax increase would drive away her customers. She thanked the parties involved who she had worked with on this project. 1- Hughes asked council to not delay this project anymore. Jim Herbert, supported the seasonal sales tax ordinance before the council. Keith Campbell, spoke in support of the library museum project. The committee had worked tirelessly to raise funds for the project. They still were fundraising. Regarding the sales tax issue, Seward was a tourist town among many things, and this increase would not deter tourists from corning to Seward. He felt the property tax was a narrow base; the sales tax was a broader base. Rhonda Hubbard, expressed planning and fundraising efforts of the library museum project. awl She felt council needed to evaluate what they city could afford. She felt like it was too much right City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 512 now. A potential $3.73 million in a general obligation, non- revenue producing bond could exhaust our other future bonding possibilities. She encouraged a lower bond amount, postponing the ground breaking date, give more time for fundraising, and not to have this deadline dictate the project. She encouraged council to give itself some breathing room. Hubbard felt they should look at bonding last, and if so, the shortest bonding possible. She suggested maybe bonding at $1.5 million or put it out as a referendum to the voters. Warren Huss, supported the sales tax ordinance and he was a small business owner in Seward. He didn't feel this increase in taxes would be that significant. The people that would pay were people that came from out of town and paying one extra penny on the dollar would not deter people from coming to Seward. Carol Griswold, supported the seasonal sales tax. She felt it was the most fair way to pay for the project. She did not think they should delay and ponder and redesign. The museum holds Seward's treasures and they were in need of a better place to hold them. It was an important project and a quality of life improvement. She urged support. Christy Terry, supported the library museum project and the bonding. She felt never again would there be an opportunity to obtain a building like this with the funding they've received. She felt it was time to move forward. Terry asked for the council to please tax her, and a seasonal sales tax would be best. She thought they needed to hold the design team and committees to make sure it stayed within budget. Katy Turnbull, thanked the council and mayor for their service to their community. She thanked the steering committee for the library museum project. As an educator, Turnbull supported the funding of this new building. It meant a lot and would be a lasting benefit for our youth and community. She supported the seasonal sales tax. Joshua Eavis, a Seward High graduate in 2012, spoke in favor of the library museum project. He spoke on reasons why the library could benefit him and his classmates. He thought it could help bring more people in the library for community events. This new building would generate more interest with the museum and he hoped it would entice more people to come visit the facility. Mary Tougas, supported the library museum project. It started as a community vision with Mayor Edgar Blatchford, seven years ago. The first plans were too big and unsustainable. The plans had been cut in half, and she felt what was before the council now was sustainable. As a business owner, she paid sales tax to the city and the borough. To community members and year round residents, the impact of a seasonal sales tax was almost nil. Would one percent hinder her business or turn away customers? She stated it would not. It would allow for out of city residents to help pay for this. The committee took a lot of time and effort to earn the monies already raised. She supported the library and the sales tax ordinance before the council. Tougas felt this facility being downtown would support the area, visitors and residents alike. It would enhance the downtown core. She asked for council's continued support. City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 513 James Fredrickson, spoke in support of the funding of the library museum by way of the seasonal sales tax. He thanked the council for their willingness to serve this community and for the opportunity to speak. He emphasized the momentum needed for this project. There was a tremendous amount of momentum and he encouraged council to continue with this momentum. He said Seward was a progressive community. As a tourist in other community, he had never researched the sales tax structure of a community before they visited it. He supported the seasonal sales tax. Jessica Bamford, out of town resident, fully supported the seasonal sales tax and wanted to do her part to help pay for it. She was excited about this project for her children. Jed Wilde, supported the library museum project. As a youth working in the tourist industry, he had never heard of a visitor complain of sales tax. He was to be a Seward High graduate in 2012 and hoped to be the first graduating class to see this building open. Martin Spargo, from Wasilla and a summer business owner in Seward since 1994. He didn't have the finger on the pulse of this community, but he worked in the harbor and knew what doing business was like and what his expenses were. His personal sales tax rate would be quite a bit higher than just his customers. As a harbor business owner, it was increase after increase after increase. He saw this just as another increase and he felt it would never stop. Spargo supported the library museum project conceptually, but hoped there would be another way to fund it. Maybe they could increase from 4% to 5 %, then back down to 4 %, instead of 3 %. It didn't grouse him as bad. mai Mark Kulstad, owner of Hotel Seward, said this was an admirable mission, but the library was envisioned in a time of a robust economy. Right now, the nation/world was in recession, caused by an obligation of debt by the consumer. They were talking of passing this burden on to the consumer. Burdened consumers travel to Seward, and yes, he did receive complaints on the price of traveling and sales tax. People were more careful in their spending. It was expensive for people to come here, and they needed to bring people here and raising sales tax was not the way to do it. He asked them to build a library without further obligation of a sales or property tax increase. David Kingsland, spoke in favor of the seasonal sales tax. He did not mind paying property tax, either, but because it was a broad base of users, he felt increasing the sales tax was the fairest way. Mike Jones, travelled in the summer, and from his observations most libraries were for the use of internet. He didn't think that would change, so he did not see the point in having a nicer library. He was in opposition of the sales tax ordinance before the council — people were having a tough time as it was already. Mary Kulstad, thanked for their service and the committee for their work on this. The economy of the world had changed from when this idea was born. She was in support of the library. but not in the form of a tax increase. "Something For Us" at the expense of our visitors would drive tourists away. Other communities taxes were less, they may be more likely to travel elsewhere. She didn't think we should be gouging our customers. It was not business friendly. She suggested possibly using other buildings in town. City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 514 David Paperman, said in Alaska, taxes were considerably lower than any other place in the nation. He spoke in support of a new library museum. He would gladly pay a higher sales tax seasonably, a higher sales tax year round, and would gladly pay a fee to use the library. The discussion should be how to pay for it, not whether to build it or not. The city should annex the outside areas to help pay for these projects. Paperman thanked the council for supporting arts and education. Dan MacDonald, a 25 year Seward resident and business manager, spoke in opposition of the sales tax, but thought the efforts of the library museum committee was commendable. As it had been heard this evening, this would directly impact the business communities. He agreed it was a tough balance. He supported the facility, not sales tax. It should be a facility Seward could afford. He thought the bond should sunset quicker. MacDonald suggested whatever the outcome; there should be a committee to track the dollars. He wished council would get past the mentality of going after the tourist dollars. Kerry Martin, supported the seasonal sales tax increase, and opposed the property tax increase. There were only 700 property owners who paid tax — it was not fair to tax just those people. He wanted to pay his share through sales tax. He ran a B &B in town for many years, and never once was asked what their bed and sales tax rate was. They were not behind the curve for completion of the building nor have they missed any important deadlines. Martin reiterated this was the library and museum. Joann Myers, lived in Anchorage, but owned a home and some businesses in Seward for many years now. Times change, but from her perspective they were getting this library at a bargain price. So much was already funded and sales tax did seem to be the most equitable way. She would be affected by this and still supported it. James Pruitt, thought the tourists weren't going to care, because don't know any differently. The people who would care were the Alaskans, they would know. This sales tax increase wouldn't go away, even though it was slated to. It wasn't just a penny. It was a combination of many little things that all together makes a big dent. The people that do business in town knew better and noticed it. The council should be worried about those people. Chellie Skoog, Development Director on this project, supported this project and supported the seasonal sales tax. She felt it was important to point out several entities had shown their support in a large way including $4.7 million frm the state and $500,000 from the Rasmuson Foundation. Large entities believed in Seward. Skoog stated it would be remiss of us to not believe in ourselves. This new building would be a place to preserve our history and an investment of our future. Eileen Eavis, supported a seasonal sales tax. They do 90 -95% of their shopping locally. They came here years ago as tourists, and then it was apparent that education and art was important in Seward and was what brought them here as residents. She hoped they would support this. how City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 515 Mark Olsen, liked the idea of the museum, but didn't like the idea of it being rammed down their throats. Neither property nor sales tax increases were the correct way to go. Most of the tourists in this town were Alaska residents, which should be an important factor. Maureen Callahan, a Seward Library employee, was happy to see the turnout tonight. She thanked everyone for coming and for speaking their words. She was supportive of the property tax increase. Jonathan Sewall, said many senior citizens were exempt from paying property taxes. He supported the seasonal sales tax. Joanie Merritt, supported the Library Museum project wholeheartedly. It would be a community center as well; she supported the seasonal sales tax. The sales tax on fuel costs would be lowest when it was the coldest and both inside and outside residents benefit from the community and this way all could contribute. Council recessed at 9:03 p.m. Council resumed at 9:12 p.m. Council Discussion On Ordinance 2010 -009 and Resolution 2010 -130. The joint discussion item was not conducted and council determined they could discuss each item individually. Ordinance For Enactment Ordinance 2010 -009, Amending Seward City Code Section 5.35.055 To Create A Revenue Source For Repayment Of The S3.73m General Obligation Bond For Construction Of The Seward Community Library Museum By Establishing A Variable Seasonal Sales Tax That Increases The City Of Seward Rate To 5% During April Through September Of Each Year And Reduces The Rate To 3% In October Through March Of Each Year. Motion (Keil /Shafer) Enact Ordinance 2010 -009 Oates gave background information and justification of the ordinance. He recommended that this sales tax sunset when the GO bond were paid in full. He read the finance director's fiscal note and stated there would still remain a balance of $161,000 each year for annual operating costs. This may be subject to voter referendum. To cover costs would require another increase of some sort. If funding was not identified, it could weaken the city's bond application. A one half cent year -round increase would bring in $450,000 /year. A June through August one cent increase only would be the same. It was noted the city should consider matching the borough's seasonal non prepared food tax exemption or filers could potentially be dealing with a change in taxes four times a year. It was noted the money raised current to date could be used to do other things. City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 516 Finance Director Kristin Erchinger added the city was seriously limiting the financial flexibility in the future with other general obligation bonds. If issued, the bonds would be pledged with full faith in the city. Regardless of the source, they were still required to pay and raise revenues. She was concerned with the impact of the financial flexibility in the future of other bonds. Keil appreciated the attendance tonight. She would like to delve into other funding options for the bond. Keil wanted to postpone to the next meeting so they could get information for other scenarios such as a tobacco and alcohol tax. Motion (Keil/Bardarson) Postpone Ordinance 2010 -009 to the February 14, 2011 Council Meeting. Oates stated staff was starting to look into this sin tax option. Shafer thought it could certainly cover the bond payment. In response to council, Oates stated what was needed was to pass in a timely manner were the resolutions for the bonds, architects, and design. They could begin the process without determining the revenue stream. Erchinger said an alcohol tobacco tax would take at least a month for council approval, and that was before her research on the subject. She reminded council they needed to build the strongest application to the bond bank as possible, which she still felt included operating costs. Right now there were no operating costs determined. ,. Shafer would like a firmer figure of what the operating costs were. Oates said they could get a more informed estimate. Valdatta thought they should move forward with this project. Casagranda was confused that it would be acceptable to move forward with this project as it was presented. Even the with 1 percent sales tax increase, they were still short funds. She appreciated the work and efforts of everyone involved, but she also would like to postpone the decision. It needed to be looked at further and it was getting out of hand. Valdatta was in support of alternate funding for tobacco tax, but he didn't want to tax liquor. Dunham wanted to get this issue settled. He agreed with the idea of other funding options. But the length of the bond payoffs bothered him. The maintenance and operating costs needed to be figured in the total budget, but by cutting the budget. He hated to see it mixed in this discussion. Motion to Postpone Passed Yes: Shafer, Keil, Casagranda, Bardarson, Dunham No: Valdatta Resolution For Approval L City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 517 Resolution 2010 -130, Establishing A 1 Mill Increase In Property Tax To Generate A Revenue Source For Repayment Of The $3.73m General Obligation Bond For The Construction Of The Seward Community Library Museum. Motion (Keil /Shafer) Approve Resolution 2010 -130 Oates stated the intent and justification of this resolution. This was not subject to referendum. Dunham wondered if they possibly needed this resolution if the sales tax ordinance went down. Maybe council should not fail it at this juncture. He suggested postponing it as well. Motion (Dunham/Valdatta) Postpone Resolution 2010 -130 to the February 14, 2011 Council Meeting. Keil didn't agree with postponement. she thought a property tax increase, if ultimately needed, could be looked at during the next budget. Erchinger it would weaken the application if a revenue source wasn't determined for the bond and for the operating costs, but that was just her opinion, she could not speak for the bond bank. Bardarson noted they could always bring this back. Shafer thought this was not an agreeable source and not realistic to even discuss. Motion to Postpone Failed Yes: Casagranda, Valdatta, Dunham No: Shafer, Bardarson, Keil Main Motion Failed Yes: Valdatta, Dunham No: Casagranda, Bardarson, Keil, Shafer UNFINISHED BUSINESS Resolution 2010 -129, Authorizing The Issuance And Sale Of General Obligation Bonds In The Aggregate Principal Amount Of Not To Exceed $3,730,000 To Pay The Costs Of Library /Museum Capital Improvements In The City, Fixing Certain Details Of Such Bonds, And Pledging The Full Faith And Credit Of The City To The Payment Thereof. Motion (Bardarson /Shafer) Approve Resolution 2010 -129 Oates stated the intent and justification of the resolution and stated the revised amount for the project was $10,013,458 which includes the basement. In 2009 voters approved up to a $5 million bond for this project. $3.73 million was the estimated needed cost. This did not take in the operating costs needed after the building was constructed, which was approximately $260,000 /year. Erchinger stated the bond bank provided the mechanism for financing, but when they issued bonds they issued in the name of the Alaska Municipal Bond Bank, therefore the bond bank would make extra sure the city had the capability of repaying those bonds, because if the city was not able to City of Seward, Alaska January 24, 2011 City Council Minutes Volume 38, Page 518 make payments it would adversely affect this bond bank. This was why the bond bank's role in this was so critical. In response to Casagranda, Oates stated the basement was partially finished and it determined the foundation of the building. It was fully excavated with concrete floors, heat, and ventilated to code. Motion to Amend (Bardarson /Casagranda) Amend Resolution 2010 -129 to a $2.5 million bond instead of $3.73 million. Oates stated administration did not support the idea, as it was financially dangerous to pledge not enough funds for the project. Oates did not feel comfortable moving forward without knowing or guaranteeing how to pay for the project. He stated the other option was to come up with another project, or delay the project if they wanted to bond for $2.5 million. But as things currently were, $2.5 million was way too uncertain, Oates felt. Dunham didn't think this was a wise move. He did not want to tie this up for 25 years. He wanted a way to pay this off and get this facility going. It would be a mistake to drop it to $2.5 million. The project has received almost 25% of the funding already. Dunham stated if they couldn't come up with a quarter of it, shame on the city. Bardarson wanted to know where the city would come up with the $800,000 they were short with the $3.73 million bond figure. Oates confirmed this would pay for the construction of the facility. If it were less, it was too risky to go forward with. Erchinger said the motor pool cash balances were about 800k, they could pay it out of the general reserves, potentially, but leaving those funds with little to zero balances was an extremely dangerous practice she did not support. Motion to Amend Failed Yes: Casagranda, Bardarson No: Shafer, Keil, Valdatta, Dunham Dunham liked Keil's alternative ideas. Shafer thought they needed to look at other options as well. She didn't mind passing this because the number could be tweaked. Main Motion Passed Yes: Keil, Shafer, Valdatta, Casagranda, Dunham No: Bardarson Because of time, the council briefly discussed recessing this meeting until the following day. By unanimous consent, council allowed the remaining time in the meeting for citizen comments. Keith Campbell said he felt blindsided. He said to delay this project this late in the process ,�, was a travesty. As a private citizen, he was disappointed. 9 City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 519 Mary Tougas felt there was a good community show in favor tonight of the sales tax to j cover the bonding of $3.73 million. There was overwhelming support, she felt. If council wanted to explore a sin tax to help with the extra costs. that's great — but she was disappointed they could not make a decision. To try and change it now was not pleasing for her. They were still fundraising just as hard and were willing to try and close the gap. Council recessed at 10:30 p.m. with a time to reconvene on Tuesday, January 25, 2011 at 7:00 p.m. in the City Council Chambers. The January 24, 2011 meeting resumed at 7:00 p.m. on January 25, 2011. There were present: Willard E. Dunham presiding and Marianna Keil Jean Bardarson Vanta Shafer Bob Valdatta Ristine Casagranda Tom Smith comprising a quorum of the Council; and Phillip Oates, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy Clerk UNFINISHED BUSINESS (continued) Resolution 2010 -127, Authorizing The City Manager To Enter Into Amendment Number Three With RISE Alaska, LLC (RISE) For Professional Project Management Services Through 100% Design For The New Co- Located Library Museum Facility, Appropriating Additional Funding Not -To- Exceed Forty Eight Thousand Forty Eight Dollars ($48,048). Motion (Shafer /Smith) Approve Resolution 2010 -127 Oates stated this would allow them to proceed ahead from the 65% design to 100% design for the library museum project. Rise Alaska was the successful company for the Request For Proposal for project management services for the Library Museum Project. Oates recommended approval. In response to Casagranda, Oates stated they wouldn't be able to order steel until the 100% design was complete, this resolution would allow them to move ahead and order the steel. Oates stated the best they could do was estimate the costs until they passed the 100% design. The contractor and architect were working together, so that helped relieve the unknown costs. At this point, the two companies thought it was pretty close to the estimate. Overall construction costs may still change through negotiation, value engineering, etc. Motion Passed Unanimous City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 520 Resolution 2010 -128, Authorizing The City Manager To Enter Into Amendment Number tuber Two With ECI /Hyer Inc. For Professional Construction Documents Basic Services For The New Co- Located Library Museum Facility, And Appropriating Additional Funding Not -To- Exceed Four Hundred Two Thousand Five Hundred Ninety One Dollars (S402,591). Motion (Shafer /Smith) Approve Resolution 2010 -128 Oates stated ECl/Hyer Inc. had submitted a fee proposal for their construction documents. This included drawing specifications, shop drawings, product data, and more. The proposal was reviewed and administration's intent was to approve this contract amendment with ECI /Hyer. The current total contract amount was $916,375. This allowed then to complete the contract documents and move forward with the process. It would take about 8 weeks to complete the construction documents, but contracting for steel could occur about four weeks into that process. In response to Valdatta, Oates said possible reductions that could be made were the sizes of the windows, changing the lighting from LED to fluorescent, increasing floor space on level 2, a cheaper approach could be taken in purchasing the steel, and overall there were a lot of areas to cut costs. Oates stated the heating plans were currently dual heating — fuel and electric. Geothermal heat pump technology was considered, but there were some major challenges found with it. Having a heat pump requires a 500 -700 feet deep well which was extremely expensive just to determine if there was a consistent heat source in addition to the arduous permitting process. Oates reported it could be up to 30 years to recover that investment. High efficient fuel oil boiler and electric heat would be more cost efficient. They were taking other measures to make it more energy efficient. Council still had options to make changes in the design. In response to Keil, Oates stated the plans initially came to council without plans for a basement, but council requested to add it. If it were to be taken out, that decision would have to be made very quickly as it changed the foundation of the building. Dunham said a full basement was important and logical to have. Council suspended the rules by unanimous consent to have the project architect to explain the lighting. Brian Meissner with ECI Hyer explained the lighting in the building. LED lights would stay with the museum as it helped with the preservation of the pieces, but it was an option to replace the library LED lights with fluorescent lights to cut costs. Smith said some people have trouble with LED. Meissner had heard the fluorescents were actually more difficult, and the newer LED's were less harsh with recent technology advances. There was seven to twelve years of return on investment with LED, Meissner stated. It was more expensive and they lasted about seven to ten years. In response to Valdatta, earthquake approval was looked at with the Alaska Building Codes. Motion Passed Unanimous L City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 521 NEW BUSINESS Resolution 2011 -005, Authorizing The City Manager To Extend The Maintenance And Operating Agreement With Seward Ship's Drydock, Inc. Through August 31, 2011. Motion (Keil /Shafer) Approve Resolution 2011 -005 Dunham said the attorney was available by phone if council wanted to have her available. There was a difference of opinion with the City Manager and the City Attorney on this issue. It had been suggested to discuss this in a possible executive session. He stated the attorney would like to reschedule this with an executive session at a later time. Keil stated for the record that her spouse did not work for Seward Ship's Drydock. She had heard that misconception around town. Smith said he would be uncomfortable discussing this resolution without the attorney present, based on what Dunham stated. Motion (Keil/Bardarson) Postpone Resolution 2011 -005 to a special meeting on January 27, 2011 at 6:00 p.m. in the City Council Chambers Motion to Postpone Passed Unanimous Motion (Keil /Shafer) Direct staff to add an executive session on the January 27, 2011 special meeting council agenda before Resolution 2011 -005 Motion Passed Unanimous Resolution 2011 -006, Amending The City Of Seward's Calendar Year 2011 State Legislative Priorities. Motion (Keil /Shafer) Approve Resolution 2011 -006 Oates noted he had compiled an addendum that explained the changes before the council tonight. Motion to Amend (Bardarson /Keil) Amend Resolution 2011 -006 by inserting a new number one to the section B. Port, Harbor, and Industrial Area: "$400 thousand to conduct a preliminary engineering study and economic analysis for building and establishing the home port infrastructure that will support relocation City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 522 LIN of the fishing fleets owned and operated by the six Community Development Quota Groups (CDQ Groups) from the State of Washington to Alaska." Oates stated the reasoning behind the addition of this amendment and its importance. Dunham said he would be meeting with United Fisherman of Alaska, who were enthused at coming together to work on this. It was a huge goal to bring Alaska Fisheries home. Members of the Alliance were also willing to assist. He was feeling good about this. They had to put together a strong united front on this issue. Dunham said they need to be careful with this process. Motion to Amend Passed Unanimous Oates continued to state the changes of the resolution before the council. Shafer hoped the likelihood of the Shellfish Hatchery renovation was good and stated Seward should be bragging about our director, who was doing a tremendous job. Keil thought PACAB maybe had an objection to the ADA accessible boardwalk in the harbor. Oates said he sat in on the meeting that this was noted, and he disagreed with their objection. He felt if they waited they could lose an opportunity for this project. Motion Passed Unanimous arm OTHER NEW BUSINESS Discussed whether to postpone the City Clerk evaluation to June 2011 or to the next evaluation period in 2012. Council decided to evaluate City Clerk Johanna Kinney in 2012. Discussion on researching other funding options for the library museum project. Oates provided a staff memo outlining a time line to research other financing options for the library museum. Finance Director Kris Erchinger stated this was the best case scenario. Shafer wanted to look at other options. An alcohol and tobacco tax would be more amenable she felt. Smith did not like government butting in on his choices, so he wouldn't vote for an alcohol and tobacco tax. Keil said she would support looking into this as well. Bardarson, Valdatta, Casagranda were also willing to have staff look into this. Keil wanted to know why they couldn't raise the parking fee back up to $10, but both Bardarson and staff agreed that there were other priorities such as paving and parking upgrades needed first. Dunham thought it was a good idea to look at these alternatives and emphasized he wanted to be in a position to discuss how to shorten the time of the bond payment schedule. The city needed to dedicate to paying this bond off sooner than 25 years. Oates pointed out this would result in a higher annual bond payment and noted the figures listed for the council. Dunham said they paid the Alaska SeaLife Center bonds off early and it was very beneficial to do so. City of Seward, Alaska City Council Minutes January 24, 2011 Volume 38, Page 523 Bardarson would prefer a shorter bond payoff, Shafer wanted numbers for 10 and 15 year ..r bonds. Council directed staff to look at the possibility of an alcohol and tobacco tax, and other variations of a sales tax increase with potential shorter bond payoff alternatives. Smith reiterated he did not think they should earmark a certain group of people to be taxed. Council would continue to delay the seasonal sales tax option. Casagranda would like to see what the riskier variations entailed. INFORMATIONAL ITEMS AND REPORTS (No action required) November financial reports for the city and Providence. COUNCILS' COMMENTS Shafer was proud of the community on this issue. Not everyone was agreeing but yet civility remained. The country should take a page from our books, she stated. Casagranda thanked the library committee for their hard work and they were appreciated. She noted the soon -to -be absence of the animal control director and stated she would be missed. Smith apologized for his absences. He was back for a while and would oppose the sin tax. Keil attended the Chamber of Commerce event on Friday and congratulated Bencardino, Kulstad and Studio 335 for their Chamber awards. Valdatta said he was asked to attend the Children's Fair at the AVTEC gym over the polar bear weekend, and it was a neat and impressive event. Bardarson thanked and congratulated the chamber recipients and the polar bear jumpers. Dunham congratulated the Polar Bear Committee and it was a great event put on by the community. Each year gets better and better. Congratulated Louis Bencardino for winning the Chamber of Commerce Person of the Year award, and Mary Kulstad was well deserving of winning the Business Person of the Year award. Jennifer Carrick leaving was a blow to the heart of animal control in Seward. He encouraged the public and council to participate in the treasure hunt program put on by local business owners. Oates thanked Erchinger for her service to the community; she had just come from refereeing a school basketball game to attend this meeting. They planned on keeping Jennifer Carrick on contract long distance so staff could do a thorough search for the new animal control shelter director. Bardarson noted her husband Steve Carrick was a great asset as well to the community and he would also be missed. City of Seward, Alaska January 24, 2011 City Council Minutes Volume 38, Page 524 CITIZENS' COMMENTS Keith Campbell thanked council for these two contracts this evening for the library museum project. Carl Norman felt it was his duty to come down and speak tonight. He spoke on the library museum project and what a great idea it was. He was concerned with how to pay for it and racking up debt concerned him. Norman noticed they were obligated in a few bonds already. Overall, they had about $60 million worth in projects in the arca. A ten million dollar price tag really meant in the long run it will be about $15 million. He felt things had already been raised to the point of breaking, how much farther would this burden escalate without breaking Seward's back? He did not think it would be fair to tax people. Borrowing money was fine when one had the means of paying it back. It was acceptable to him to borrow money for something that generated revenue. People had told him they would rather have dependable electricity than a new library. Rhonda Hubbard addressed the revenue producing issue of the Coastal Villages. She was glad they were moving forward with it and the city was trying to accommodate them. Alaska was the poster child for sustainable fisheries, and they worked really hard to keep this industry vibrant. She said Seward needed to have a flat tax on boats. Regarding the library, she appreciated council's prudence. Hubbard encouraged them to tighten up the costs of the building and keep the momentum on the grant writing and fundraising going forward. With that, she felt a sunset on the sales tax would be a better sell to the public. She handed out a spreadsheet with her ideas. Phil Kaluza had 30 years of experience with energy efficiency. He was excited to help with the library museum, if needed. He had a chance to meet with the architect and the committee, but wasn't able to get much input so far. He looked forward to meeting further with staff. Kaluza noted he was here to provide help and he wasn't looking for work, but would very much like to be a part of helping on the energy efficiency side of this project. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS ADJOURNMENT The meeting was adjourned at 8:34 p.m. Khanna Kinney, Willard E. Dunham ity Clerk %+48 ** ` SE ., Mayor i A 4'1 _ A + 0 (City Seal) 3 ' °°�"° i c • V • c +0 rvttH nswR , $s r a +0