HomeMy WebLinkAbout05232011 City Council Packet Seward City Council
Agenda Packet
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Our Future Leaders - Seward Elementary First Graders visit City Hall!
May 23 2011
City Council Chambers Beginning at 7:00 p.m.
1963 1965 2005 The City of Seward, Alaska
!mod CITY COUNCIL MEETING AGENDA
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{Please silence all cellular phones and pagers during the meeting} Q
May 23, 2011 7:00 p.m. Council Chambers
1. CALL TO ORDER
Willard E. Dunham 2. PLEDGE OF ALLEGIANCE
Mayor 3. ROLL CALL
Term Expires 2011 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE
ITEMS SCHEDULED FOR PUBLIC HEARING [Those who
Jean Bardarson have signed in will be given the first opportunity to speak. Time is
Vice Mayor limited to 2 minutes per speaker and 30 minutes total time for this
Term Expires 2012 agenda item.]
5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval
Robert Valdatta of Consent Agenda passes all routine items indicated by asterisk ( *).
Council Member Consent Agenda items are not considered separately unless a council
Term Expires 2011 member so requests. In the event of such a request, the item is
returned to the Regular Agenda]
Tom Smith
Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Term Expires 2011 A. Proclamations and Awards
Vanta Shafer 1. Military Appreciation Month and Armed Services Combat Fishing
Council Member Tournament Proclamation pg. 4
Term Expires 2011 2. National Historic Preservation Month pg. 5
3. Spring Creek Correctional Center Employee of the Year Erich
Marianna Keil Torrey pg. 6
Council Member 4. May is Memorial Poppy Month Pg. 7
Term Expires 2012
B. City Manager's Report
Ristine Casagranda C. City Attorney Report
Council Member D. Mayor's Report
Term Expires 2012 E. Other Reports and Presentations
7. PUBLIC HEARINGS
Phillip Oates A. Resolutions Requiring Public Hearing
City Manager
1. Resolution 2011 -037, Recommending Kenai Peninsula
Johanna Kinney Borough Approval Of The Waterfront Park Preliminary Replat Which
City Clerk Establishes The Outer Boundaries Of The Waterfront Park, Includes The
Vacation Of All Interior Undeveloped Rights -Of -Way, Easements And
Cheryl Brooking Interior Platted Lot Lines; Dedicates Additional Rights -Of -Way And
City Attorney Easements; Located Predominately Within The Park Zoning District..Pg.8
City of Seward, Alaska Council Agenda
May 23, 2011 Page 1
B. Ordinances Requiring Public Hearing
(Clerk's Note: At this point in the agenda, this Ordinance will have a public hearing only — no
motions for action will be made by council here. The purpose is to allow the council to hear
public testimony on this Ordinance before the council discussion item on the various
Library /Museum Funding Options. Action on this Ordinance will occur after council discussion
Item 8 -1.)
1. Ordinance 2011 -003, Amending Seward City Code Sections 5.35.010 And
5.35.035 To Allow For An Increase In Sales Tax For Alcohol Beverages And Tobacco
Products Pg. 22
8. COUNCIL DISCUSSION ITEM
A. Discussion on Library /Museum Funding Options.
9. ORDINANCES FOR ENACTMENT
1. Ordinance 2011 -003, Amending Seward City Code Sections 5.35.010 And
5.35.035 To Allow For An Increase In Sales Tax For Alcohol Beverages And Tobacco Products.
(Clerk's Note: Required Public Hearing to be held under Item 7 - A) ... 23
10. UNFINISHED BUSINESS
A. Items Postponed from a Previous Agenda
1. Ordinance 2010 -009, Amending Seward City Code Section 5.35.055 To Create A
Revenue Source For Repayment Of The Up To A $3.73m 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. (Originally
postponed from the January 24, 2011 Council Meeting, original motion made by Councilmember
Keil and seconded by Councilmember Shafer) Pg. 32
2. Ordinance 2011 -002, Increasing The City Sales Tax From Four Percent To Four -
And- One -Half Percent, Beginning January 1, 2012. (Originally postponed from the April 25,
2011 Council Meeting, original motion made by Vice Mayor Bardarson and seconded by
Councilmember Shafer) Pg. 37
11. NEW BUSINESS
A. Resolutions
*1. Resolution 2011 -038, Authorizing The City Manager To Enter Into Change Order
Number One For An Amount Not -To- Exceed $7,538 Funded By The EECBG Grant For A
Window Upgrade And Providing An Extension Of Time To Complete Work By June 30,
2011 Pg. 43
City of Seward, Alaska Council Agenda
May 23, 2011 Page 2
*2. Resolution 2011 -039, Accepting Grant Funds From ALPAR And The Kenai
Peninsula Borough And Appropriating Funds For A Parks And Recreation Litter Patrol....Pg. 54
3. Resolution 2011 -040, Appropriating $232,572.81 To Supplement A State
Legislative Grant To Dredge The Approach And Berthing Basins Of The Alaska Railroad Dock
To Accommodate Cruise Ships
Pg. 59
B. Other New Business Items
*1. Approval of the April 18, 2011 City Council Special Meeting Minutes, the April 25,
2011 and May 9, 2011 City Council Regular Meeting Minutes
. .Pg. 63
2. Vote and appoint either Angela Buck or Steve Fink to the Port and Commerce
Advisory Board with a term to expire July 2012 Pg, 82
12. INFORMATIONAL ITEMS AND REPORTS - None
11. COUNCIL COMMENTS
12. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one
opportunity to speak.]
13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
14. ADJOURNMENT
City of Seward, Alaska Council Agenda
May 23, 2011 Page 3
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* * * * * * # # * PROCLAMAT * * * * *h
WHEREAS, Seward is home to the only Military Recreation Camps in
Alaska and hosts thousands of military service members and their families each
year; and
WHEREAS, from May 21 through May 31, free boat launch passes can be
obtained from the Harbormaster's Office to all active duty I.D. holders; and
WHEREAS, the annual Armed Services Combat Fishing Tournament, to be
held on Thursday, May 26, 2011, is for military members who have served our
country so bravely in both Iraq and Afghanistan; and
WHEREAS, Seward businessman, Bob Candopoulos, owner of Saltwater
Safari Company, and event partner, Keith Manternach, of Specialty Truck and
Auto, Inc., founded this event which is now in its fifth year; and
WHEREAS, individuals and their families who serve our country during
peace and war times are encouraged to show their support and appreciation with the
appropriate display of flags and ribbons throughout the month of May.
NOW, THEREFORE, I, Willard E. Dunham, Mayor of the City of Seward,
Alaska, do hereby recognize May as
MILITARY APPRECIATION MONTH
Dated this 23 day of May, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
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PROCLAMATION OF
NATIONAL HISTORIC PRESERVATION MONTH
MAY 2011
WHEREAS, historic preservation is an effective tool for managing growth and
sustainable development, revitalizing neighborhoods, fostering local pride and maintaining
community character while enhancing livability; and
WHEREAS, historic preservation is relevant for communities across the nation, both
urban and rural, and for Americans of all ages, all walks of life and all ethnic backgrounds; and
WHEREAS, it is important to celebrate the role of history in our lives and the
contributions made by dedicated individuals in helping to preserve the tangible aspects of the
heritage that has shaped us as a people; and
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WHEREAS, "Celebrating America's Treasures" is the theme for National Preservation
Month 2011, cosponsored by the Seward Historic Preservation Commission and the National
Trust for Historic Preservation; and
WHEREAS, over the course of the past year the Seward Historic Preservation
Commission has initiated and contributed to local historic preservation activities and projects
such as the Historic Property Survey, Historic Iditarod Trail Monument, restoration of Hoben
Park planters, conducting a Survey of Seward's Cemeteries and most recently, a fireside chat
where panelists recalled education in Seward during the 1950's and 1960's.
NOW, THEREFORE, I, Willard Dunham, Mayor of the City of Seward, do proclaim
May 2011 as
National Historic Preservation Month
and call upon the people of Seward, Alaska to join their fellow citizens across the United States
in recognizing and participating in this special observance.
Dated this 23` day of May, 2011.
Willard E. Dunham, Mayor
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WHEREAS, Spring Creeh Correctional Center started the Employee o f the
Month and Employee of the Year program n 1991 t o show appreciation
and recognize those who display high levels of professionalism; and
WHEREAS,
f the Year; and
Sgt. Erich Torrey was chosen as Spring Cr eek Correctional
Center's 2011 Employee o
WHEREAS, Torrey's dedication to Spring Creek Correctional Center and to
the Department of Corrections is commendable and deserves recognition;
and
WHEREAS, Torrey will be honored at a luncheon at noon on Friday, May
27, 2011 at the Pelting Restaurant for this great achievement.
NOW THEREFORE, 1, Willard E, Dunham, Mayor of the City o Seward,
Alaska, do hereby recognize and congratulate Erich Torrey on this fine
accomplishment as
SPRING CREEK CORRECTIONAL CENTER
EMPLOYEE OF THE YEAR FOR 2011
Dated this 23 t" day of May, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
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Proclamation
WHEREAS, America is the land of freedom, preserved and protected willingly and
freely by citizen soldiers; and
WHEREAS, millions who have answered the call to arms have died on the field of
battle; and
WHEREAS, a nation at peace must be reminded of the price of war and the debt owed to
those who have died in war; and
WHEREAS, the red poppy has been designated as a symbol of sacrifice of lives in all
wars; and
WHEREAS, the American Legion Auxiliary has pledged to remind America annually of
this debt through the distribution of the memorial flower; and
WHEREAS, the proceeds of this worthy fundraising campaign are used exclusively for
the benefit of disabled and needy veterans and the widows and orphans of deceased veterans.
NOW THEREFORE, I, Willard E. Dunham, Mayor of the City of Seward, do hereby
proclaim this month of May, 2011, as Poppy Month and ask that all citizens pay tribute to those
who have made the ultimate sacrifice in the name of freedom by wearing the Memorial Poppy.
Dated this 23rd day of May, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham
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Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -037
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, RECOMMENDING KENAI PENINSULA BOROUGH APPROVAL
OF THE WATERFRONT PARK PRELIMINARY REPLAT WHICH
ESTABLISHES THE OUTER BOUNDARIES OF THE WATERFRONT
PARK, INCLUDES THE VACATION OF ALL INTERIOR UNDEVELOPED
RIGHTS -OF -WAY, EASEMENTS AND INTERIOR PLATTED LOT LINES;
DEDICATES ADDITIONAL RIGHTS -OF -WAY AND EASEMENTS;
LOCATED PREDOMINATELY WITHIN THE PARK ZONING DISTRICT
WHEREAS, administration hired Cline and Associates Land Surveyors to prepare a
preliminary plat of the City owned lands, establishing the perimeter boundary of the historical area
commonly known as Waterfront Park; and
WHEREAS, Cline and Associates has submitted the preliminary plat to be known as Seward
Original Townsite, Waterfront Park Replat; and
WHEREAS, this platting action will vacate interior lot lines, undeveloped Rights -of -Way,
and undeveloped utility easements creating eight (8) parcels totaling 106.97 acres; and
WHEREAS, this platting action will extend or dedicate the Rights -of -Way for Bailaine
Boulevard, Jefferson, Madison, "B" and "C" Streets, providing public access to Resurrection Bay
and provide legal dedication for the north end of Bailaine Boulevard to Fourth Avenue; and
WHEREAS, Cline and Associates has worked diligently with City staff to protect and
provide easements for existing and planned utilities throughout the Waterfront Park replat; and
WHEREAS, City staff have reviewed, commented and support the proposed Waterfront
Park replat; and
WHEREAS, the vast majority of the area included in the Waterfront Park is currently zoned
Park (P); approximately 6 tenths of an acre is zoned Harbor Commercial (HC); this replat does not
create any non - conforming structures or lots within the current zoning districts; and
WHEREAS, no subdivision installation agreement is necessary because all parcels are
currently serviced by municipal roads, water, sewer, electric and other utilities; and
WHEREAS, the Seward Planning and Zoning Commission held a public hearing and
approved Resolution 2011 -04, recommending the Seward City Council and the Kenai Peninsula
Borough approval of the replat.
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CITY OF SEWARD, ALASKA
RESOLUTION 2011 -037
NOW, THEREFORE, BE IT RESOLVED BYTHE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The Seward City Council recommends the Kenai Peninsula Borough Planning
Commission approve the vacation of all undeveloped interior Rights -of -Way as proposed by the
replat.
Section 2. The Seward City Council further approves the dedication of Rights -of -way for
Jefferson Street, Madison Street, B Street, C Street and Ballaine Boulevard as proposed by the
Waterfront Park replat.
Section 3. The Seward City Council further recommends the Kenai Peninsula Borough
Planning Commission approve the Waterfront Park Replat.
Section 4. This resolution shall take effect 30 days after passage and posting as required by
Seward City Code § 7.05.145.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23
day of May 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
_ 9
City Council Agenda Statement
Meeting Date: May 23, 2011 yof
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Through Phillip Oates, City Manager 4
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From: Donna Glenz, Planner
Agenda Item: Resolution 2011- U�j� recommending City Council and Kenai Peninsula Borough
approval of the Waterfront Park Replat
BACKGROUND & JUSTIFICATION:
Attached for the Council's approval and recommendation to the Kenai Peninsula Borough Planning
Commission is the Waterfront Park preliminary plat submitted by Cline and Associates on behalf of the
City of Seward. In accordance with Seward City Code (SCC) 16.01.015(B) "no preliminary plat of City -
owned property may be submitted to the Kenai Peninsula Borough Planning Commission for approval
without the prior consent of the City."
Cline and Associates was hired to survey and establish the boundary of the area commonly known as
Waterfront Park. This replat contains an area totaling approximately 106.97 acres and is located along the
Seward waterfront from Railway and Sixth Avenue north to the South Harbor Uplands. The majority of
the area has been known since the 1964 earthquake as Waterfront Park. Also included are the areas
dedicated as Pat Williams Park, Waterfront Tot Lot and the baseball fields. This entire area known as
Waterfront Park is owned by the City.
This platting action will vacate all interior lot lines, undeveloped Rights -of -Way and undeveloped utility
easements. The replat also dedicates an 80 foot Right -of -Way extension of Ballaine Boulevard, providing
legal dedication of Ballaine Boulevard through to Fourth Avenue. This replat also dedicates the Rights -
of -Way extension of the Jefferson Street, Madison Street, "B" and "C" Streets, providing legal dedication
to the existing public access easement along the entire waterfront.
The development of this replat has been a goal of the public and City staff for many, many years.
Replatting of the Waterfront Park area has also been on the Planning and Zoning Priority List as approved
by Council for many years.
At the time of the 1964 earthquake and tsunami this entire area was inundated with water and debris.
Following the earthquake this area has been established as a safety zone open area.
SUBDIVISION REVIEW:
Zoninz:
This replat contains Two (2) zoning districts. The large area known as Waterfront Park is predominantly
zoned Park (P). A very small area of the Park is located directly east of the parcel containing the Harbor
Lights Apartments. This area is currently used for motor home camping, contains approximately six
tenths of an acre and is zoned Harbor Commercial (HC). The north portion of the South Harbor Uplands
is also zoned Harbor Commercial (HC). The south portion of the South Harbor Uplands is zoned Park
(P).
Once the platting action has been completed and recorded the Community Development staff intends to
bring a rezone recommendation before the Planning and Zoning Commission and the Council to "clean-
up" the small Harbor Commercial area located east of the Harbor Lights Apartments. This replat does not
create any non - conforming lots or structures.
Utilities:
The properties are served by all necessary utilities; therefore a subdivision agreement is not required. The
proposed platting action provides utility easements for all existing utilities and current accesses.
Existing Uses:
The entire Waterfront Park area has been used as a camp grounds and open space safety zone with very
limited infrastructure and permanent structures. The Waterfront Park open space safety zone has greatly
assisted in the City of Seward Class 7 Community Rating System accreditation with the FEMA National
Flood Insurance Program.
Flood Zone:
Much of this area is located within a Coastal Velocity Flood Hazard Area.
INTENT:
Survey and establish the boundary of the area commonly known as Waterfront Park.
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 or Other Plans or Policies:
Yes No N/A
1. Comprehensive Plan (2020) X _
2.0 Community Vision and Values for 2020
Recreation:
We value diverse, year- round, indoor and outdoor recreational opportunities and facilities for residents
and visitors of all ages and socioeconomic backgrounds.
(Bullet 4, page 12) Protect open space by ensuring that Waterfront Park is platted, zoned and dedicated
for park purposes in perpetuity.
Public Safety:
We value a safe community and a feeling of security.
3.6.1. (page 25) Improve, expand and diversify year -round parks and recreational opportunities for
residents and visitors.
3.6.1.1 (page 25) (Bullets 4) Develop a landscape plan for Waterfront Park that provides for additional
green space and vacates existing lot lines and rights -of -way.
Yes No N/A
2. Strategic Plan (1999) X
Recreation and Leisure (page 12)
We provide diverse, year- round, indoor and outdoor recreational, educational, and cultural opportunities
and facilities for residents and visitors of all ages and socioeconomic backgrounds.
Goals and Objectives:
• Beautify Waterfront Park
* Develop a landscaping plan for Waterfront Park which provides for additional green space.
• Protect Waterfront Park Open Space
* Maintain Park Zoning designation throughout Waterfront Park
Yes No N/A
3. All Hazard Mitigation Plan (April 2010)
The Waterfront Park area is noted in the All Hazard Mitigation Plan in many places as a potential hazard
area for storm surges, Tsunami inundation, and potential earthquake hazard area. The plan recommends
continued protection and erosion control of the waterfront area and to maintain the area as an open safety
zone.
FISCAL NOTE:
Costs for surveying were paid in 2010. Filing fees to the Kenai Peninsula Borough for the replat are not
to exceed $500.00 and will be paid in 2011 budget.
Approved by Finance Department: jit;z,
ATTORNEY REVIEW: Yes: X No:
Staff Comments:
Community Development staff has held several meetings with department heads to review and discuss
this platting action. All concerns have been addressed and all City department heads recommend
approval of this preliminary replat.
Public Comment:
Property owners within three hundred (300) feet of the proposed platting action were notified of the
Planning and Zoning public hearing. Public notice signs were posted on the property, and all other public
hearing requirements of Seward City Code §15. 01.040 were complied with.
At the time of the Planning and Zoning Public Hearing the Community Development Department had
received two written comments. The first was a letter of support from the adjacent property owner to the
Pat Williams Park area of the Waterfront Park which also included many suggestions for future projects in
the park. The second is a request for more information from the adjacent property owner at the Harbor
Lights Apartments. While providing support for the Waterfront Park several questions were asked
regarding future plans for the area. Both of these inquiries were forwarded to the Parks and Recreation
Department for future planning projects.
Staff has also received several verbal questions and comments from the public. The questions were
clarification regarding the boundary of the Park. All questions were answered and followed by comments
of support for the Waterfront Park replat. No comments in objection to the replat were received.
The Planning and Zoning Commission held a Public Hearing April 5, 2011 and unanimously approved
Resolution 2011 -04 recommending the City Council approve the submittal of the Waterfront Park Replat
to the Kenai Peninsula Borough.
RECOMMENDATION:
Approve City Council Resolution 2011- ° Kenai Peninsula Borough approval of the
Waterfront Park replat.
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Waterfront Park Replat
/A City Council Public Hearing
• ,,* fie ,,,,
Approximate Boundary 4
N
.N., May 23, 2011 -----
4c.450' Current Zoning of Replat Area
0 435 870 Feet Mapping Assistance
L 1 I by Alaska Map Co. by:
DGIenz
.. e
4. u
Sponsored by: Staff
CITY OF SEWARD, ALASKA
PLANNING AND ZONING COMMISSION
RESOLUTION 2011 -04
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION
RECOMMENDING CITY COUNCIL AND KENAI PENINSULA BOROUGH
APPROVAL OF THE WATERFRONT PARK PRELIMINARY REPLAT
WHICH ESTABLISHES THE OUTER BOUNDARIES OF THE
WATERFRONT PARK, INCLUDES THE VACATION OF ALL INTERIOR
UNDEVELOPED RIGHTS -OF -WAY, EASEMENTS AND INTERIOR
PLATTED LOT LINES; DEDICATES ADDITIONAL RIGHTS -OF -WAY
AND EASEMENTS; LOCATED PREDOMINATELY WITHIN THE PARK
ZONING DISTRICT
WHEREAS, administration hired Cline and Associates Land Surveyors to prepare a
preliminary plat of the City owned lands, establishing the perimeter boundary of the historical area
commonly known as Waterfront Park; and
WHEREAS, Cline and Associates has submitted the preliminary plat to be known as Seward
Original Townsite, Waterfront Park Replat; and
WHEREAS, this platting action will vacate interior lot lines, undeveloped Rights -of -Way,
and undeveloped utility easements creating eight (8) parcels totaling 106.97 acres; and
WHEREAS, this platting action will extend or dedicate the Rights-of-Way for Ballaine
Boulevard, Jefferson, Madison, "B" and "C" Streets, providing public access to Resurrection Bay
and provide legal dedication for the north end of Ballaine Boulevard to Fourth Avenue; and
WHEREAS, Cline and Associates has worked diligently with City staff to protect and
provide easements for existing and planned utilities throughout the Waterfront Park replat; and
WHEREAS, City staff have reviewed, commented and support the proposed Waterfront
Park replat; and
WHEREAS, the vast majority of the area included within this replat is currently zoned Park
(P); approximately 6 tenths of an acre is zoned Harbor Corrunercial (HC); this replat does not create
any non - conforming structures or lots within the current zoning districts; and
WHEREAS, no subdivision installation agreement is necessary because all parcels are
currently serviced by municipal roads, water, sewer, electric and other utilities; and
Seward Planning and Zoning Commission
Resolution 2011 -04
Page 2 of 3
WHEREAS, it is the Planning and Zoning Commission's responsibility to act in an advisory
capacity to the Seward City Council and the Kenai Peninsula Borough regarding subdivision plat
proposals; and
WHEREAS, as required by Seward City Code §16.01.015, Conditions to plat approval,
property owners within 300 feet of the requested replat were notified of the proposed subdivision,
and the property was posted with public notice signage.
NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning
Comunission that:
Section 1. The Commission recommends that, in accordance with Seward City Code Section
16.01.015 (B), the City Council approve the submittal of the Waterfront Park Replat to the Kenai
Peninsula Borough for approval.
Section 2. The Commission further recommends the City Council approve the vacation of all
undeveloped interior Rights -of -Way as proposed by the Waterfront Park replat.
Section 3. The Commission further recommends the City Council approve the dedication of
Rights -of -way for Jefferson Street, Madison Street, B Street, C Street and Ballaine Boulevard as
proposed by the Waterfront Park replat.
Section 4. The Commission fiu recommends Kenai Peninsula Borough approval of the
Waterfront Park Replat.
Section S. This resolution shall take effect immediately upon its adoption.
u
Seward Planning and Zoning Commission
Resolution 2011 -04
Page 3 of 3
PASSED AND APPROVED by the Seward Planning and Zoning Commission this 5 day
of April 2011.
TIIE CITY OF SEWARD, ALASKA
Wa �? 0 Q J G7 ek-
Sandie Roach', Chair
AYES: Morgan, Seabury, Butts, Heinrich, Roach'
NOES: None
ABSENT: None
ABSTAIN: Ecklund
VACANT: One
ATTEST: _
Johanna Kinney /' MC
City Clerk
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City of Seward, Alaska Planning Commission Minutes
April 5, 2011 Volume 6, Page xxx
New Business Items requiring a Public Hearing
Resolution 2011 -04 of the Planning and Zoning Commission recommending
1 r City Council and Kenai Peninsula Borough approval of the Waterfront Park
,-, Preliminary Replat which establishes the outer boundaries of the Waterfront . .
A Park, includes the vacation of all interior undeveloped rights -of -way,
easements and interior platted lot lines; dedicates additional rights -of -way and
easements; located predominately within the Park Zoning District ' 7
Glenz explained the proposed Waterfront Park replat '` on the Planning & Zoning
and City Council priority lists for several years. Cline aneAssociates was contracted to provide
the proposed plat of City -owned lands. The plat es the waterfront boundary, vacated �\
..,;,. 1
interior lot lines and extended the rights -of- -way for �e�sting that lead to the waterfront. J J
Glenz also pointed out the zoning designation of the areas includi< thin Waterfront Park repat.
The Waterfront Park area was a safety zone and run -up area for tsunani' which is one reason the
land is largely free of structures, Glenz stated. The replat was supporte > the Land Use Plan,
City Strategic Plan and the All Hazard Mitigation Plan. `` f' ''
(
Roach' asked if the campet_par parcel near the South Harbor Uplands would be
rezoned to Park. h /
Glenz stated once the replat was ''completed a Yd the area included within the Waterfront (
boundary staff planned to bring a rezone forward to i nclt de shat small area in the Park Zoning " '
Disctrict. - I
Coissioners further discussed the proposed Waterfront Park replat, parking and access 1
via rights- of ova y-
''Commissioner Eek1ttnd requested a ruling from the Chair to abstain her vote. She stated
the Borouf>.attorney had rul'etthat Commissioners were not able to vote on a proposed replat at / '
the municiP4ievel if they intended to vote at the Kenai Peninsula Borough Planning Commission
level.
Following discussion tP Chair ruled that Ecklund recuse herself from voting on )
Resolution 2011 -04. Ectelhrrtnoved herself from the dais until voting was completed. //
Butts asked staff if the rights -of -way access took away any of the usable land for campers
in the Waterfront Park.
Glenz said no changes were planned to occur to the current camping areas, because the
access roads were already in place.
Notice of public hearing being posted and published as required by law was noted ` -�
and the public hearing was opened. !�
I
City of Seward, Alaska Planning Commission Minutes
April 5, 2011 Volume 6, Page xxx
No members of the public signed in to speak. !�
f a
City Parks & Recreation Department Director Karin Sturdy asked to speak and thanked
1 \ Commissioners and City staff for the work that was done to replat the Waterfront Park. Sturdy
said her staff was very pleased with the quality and detail provided in the plat.
There were no additional requests to be heard and the public hearing was closed.
t 1
Motion (Morgan/Butts) Approve Resolution 2011 -04
- - Motion Passed Unanimous s-
Unfmished Business - None
New Business --
Resolution 2011 -05 of the Planning an'd,, Zoning Commission of the City of
Seward, Alaska, recommending the Ken`al PeninsulC approval of the
interior lot line vacation of Lot 7 and 8, Bioct''1,4Y1 ':ederal Addition
Glenz explained the Kang Replat was prepared and submitted by Integrity Surveys of
Soldotna. The property owner wished to vacate the interior `ibt line to accommodate the planned
expansion of a garage. ``•<
Commissionecklund requested a ruling from the Chair to abstain her vote. She stated
the Borough attorney had ruled that Commissioners were not able to vote on a proposed replat at
the municipal level if they<interndecLto:yote at the Kenai Peninsula Borough Planning Commission
level.
The Chair culled that Ecklund recuse herself from voting on Resolution 2011 -05. Ecklund
removed herself from the dais until voting was completed.
Commissioner .Heinrich asked property owner Soo Kang if she understood the utility
request made by the City of Seward that utility easements be maintained along the alley to the east
of her property. Kang indicated she did understand and accepted the condition.
Motion (Seabury /Morgan) Approve Resolution 2011 -05
Butts stated that Kang had done a good job of maintaining the appearance of her property
and Bed and Breakfast operation.
Motion Passed Unanimous
Informational Items and Reports (No action required)
April 12, 2011 Special Meeting Reminder
r ; : 1
Agenda Statement
`'�°f se�
Meeting Date: May 23, 2011
To: Mayor Dunham, City Council Members .,
4� SY
From: Johanna Kinney, City Clerk
Agenda Items: Public Hearing for Ordinance 2011 -003 and
Council Discussion on Library /Museum Funding Options
BACKGROUND & JUSTIFICATION:
Because the agenda is a little different this meeting, I wanted to further clarify the order of
business before Council. Three different funding options for the Library /Museum Project are
before the council on this agenda. If council wishes to discuss all three possibilities at once, a
specific discussion -only item is on this agenda to satisfy this need (see Item number 8 — Council
Discussion Item). It is important to remember that at this point on the agenda no action should be
taken.
It was recommended by the attorney that if Council wants to hear all public comment before
their discussion, to move the public hearing portion of Ordinance 2011 -003 (amending the code
to institute an alcohol and tobacco tax) prior to the aforementioned Council discussion.
Therefore, the agenda was adjusted to allow for the following order to occur:
-- Public Hearing on Ordinance 2011 -003 — at this point no action should be taken, the mayor
only to open the public hearing, receive citizen testimony, and close the public hearing when all
those wishing to be heard have been heard.
-- Council Discussion on Library /Museum Funding Options. Again, no action should be taken at
this point, only discussion.
- -Then the agenda would continue normally starting with Ordinance 2011 -003 for possible
enactment, Ordinance 2010 -009 for possible enactment, Ordinance 2011 -002 for possible
enactment in that order. The agenda would continue normally after this point.
RECOMMENDATION:
This is at the recommendation of the City Manager, City Attorney and City Clerk. However, this
is the City Council's agenda, so if they would like the order of business to change, it is certainly
in the council's jurisdiction to do so. The appropriate time to change the order of business on the
agenda is when council approves the agenda and consent agenda.
4 ti
Sponsored by: Oates
Introduction: May 9, 2011
Public Hearing:
Enactment:
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING SEWARD CITY CODE SECTIONS 5.35.010 AND
5.35.035 TO ALLOW FOR AN INCREASE IN SALES TAX FOR ALCOHOL
BEVERAGES AND TOBACCO PRODUCTS
WHEREAS, the City of Seward (the "City ") and the Seward Community Library Museum
Building Committee (the "Committee ") have been working to secure funding, since 2003, for the
design and construction of a new community library museum (the "Project "); and
WHEREAS, the City and Committee have secured $5.1 million from the State of Alaska and
private foundation funding for the Project, and $1.1 million in grant applications are pending; and
WHEREAS, the City voters approved the issuance of a general obligation bond (the "Bond ")
in an amount not to exceed $5 million to finance capital costs of the Project; and
WHEREAS, additional funding sources for repayment of the Bond are under consideration,
including an increase in the City's sales tax levied on alcohol beverages and tobacco products; and
WHEREAS, the City currently levies a sales tax in the amount of four percent (4 %) and the
Kenai Peninsula Borough currently levies a sales tax in the amount of three percent (3 %), for a
combined sales tax in the City of seven percent (7 %); and
WHEREAS, it has been determined to be in the best interests of the City to increase the
City's sales tax levied on alcohol beverages and tobacco products from four percent (4 %) to fourteen
percent (14 %).
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Section 5.35.010 is amended as follows:
Strikeout = delete Bold Italics = new
5.35.010. - Definitions.
In this chapter, unless the context specifically indicates otherwise, the
meaning of terms used in this chapter shall be as follows:
23
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
Alcoholic beverages. Means beer, wine, distilled spirits, and all other
spirituous, vinous, malt and other fermented or distilled liquid, whatever the
origin, that is intended for human consumption and that contains one -half of one
percent (0.5 %) or more of alcohol by volume, whether produced commercially or
privately.
Business. Means any activity engaged in by any person, or caused to be
engaged in by such person, him, with the object of gain, benefit or advantage, either
direct or indirect.
Cigarette. Means a roll for smoking of any size or shape, made wholly or
partly of tobacco, whether the tobacco is flavored, adulterated, or mixed with
another ingredient, if the wrapper or cover of the roll is made of paper or a
material other than tobacco.
City manager. Means the city manager of the City of Seward or the
manager's designee.
Cost price. Means the actual cost to a purchaser of an item or article of
tangible personal property computed in the same manner as the gross proceeds in this
section.
Dealer. Means:
(1) Every person in the city who makes any retail sale or sales of tangible
personal property or services or who leases or rents any tangible
personal property or real property, the receipts from which are taxed
by this chapter;
(2) Every person engaged in the business of making any retail sales or
rentals of tangible personal property for use, storage or consumption
in this city who either:
a. Maintains, occupies or uses, permanently or temporarily,
directly or indirectly, or through a subsidiary or agent, by
whatever name called, an office, place of distribution, sales or
sample room or place, warehouse or storage place or other
place of business in this city;
b. Has any representative, agent, salesman, canvasser or solicitor
operating in this city under the authority of any person or
such person's his subsidiary for the purpose of selling,
r 4
L
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
delivering, or taking any orders for any tangible personal
property;
c. Every person who uses, consumes, stores or distributes
tangible personal property, whether purchased or self -
produced by such person, to be used or consumed in this city;
d. Every person who as a representative, agent or solicitor for an
out -of -city principal, solicits, receives, and accepts orders
from persons in this city for future delivery and whose
principal refuses to register under this chapter.
Distribution. Means the transfer or delivery of tangible personal property for
use, consumption, or storage by the distributee, and the use, consumption, or storage
of tangible personal property by a person who has processed, manufactured, refined,
or converted the property, but does not include the transfer or delivery of tangible
personal property for resale or any use, consumption, or storage otherwise exempt
under this chapter.
Employee. Means a person receiving consideration for services rendered an
employer, and who is entitled to worker's compensation coverage from the employer,
and whose employer makes all normal deductions from the employee's
compensation, including, but not limited to, state and federal withholding, social
security, unemployment and employment security benefits.
Employer. Means a person receiving services from an employee.
Gross proceeds. Means the total amount for which tangible personal property
or services are sold or for which tangible personal property or real property is rented,
valued in money, whether paid in money or otherwise, and includes any amount for
which credit is given to purchaser, consumer, or lessee by the dealer, without any
deduction therefrom on account of the cost of the property sold, the cost of materials
used, labor or service costs (whether incurred in the manufacture or installation of
tangible personal property or otherwise), transportation charges, losses or any other
expenses whatsoever. Cash discounts allowed and taken on sales are not included in
the gross proceeds nor shall gross proceeds include finance charges, carrying charges,
service charges or interest from credit extended on sales of tangible personal property
under conditional sales contracts or other conditional contracts providing for deferred
payments of the purchase price, nor shall gross proceeds include federal retailer's
excise tax or state excise taxes if the taxes are billed to the purchaser separately from
the selling price of the article. If used articles are taken in trade, or in a series of
trades as a credit or part payment on the sale of new or used articles, the tax levied in
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
this chapter shall be paid on the net difference between the gross proceeds derived
from the new or used articles and the credit for the used articles.
Import and imported. Apply to tangible personal property imported into this
city from other areas in the state or from other states as well as from foreign
countries, and "export" and "exported" apply to tangible personal property exported
from this city to other areas within the state or other states as well as to foreign
countries.
In this city or in the city. Means within the municipal boundary limits of the
City of Seward, Alaska.
Lease or rental. Means the leasing or renting of tangible personal property
and real property or the possession or use thereof by the lessee for a consideration,
without transfer of the title to the property.
Person. Means any individual, firm, copartnership, cooperative, nonprofit
membership corporation, joint venture, association, corporation, limited liability
company, estate, trust, business trust, trustee in bankruptcy, receiver, auctioneer,
syndicate, assignee, club, society, or other group or combination acting as a unit,
body politic or political subdivision, whether public or private, or quasi - public, and
the plural as well as the singular number.
Retailer. Means every person engaged in the business of making retail sales
of tangible personal property and providing taxable services as defined in this
chapter.
Retail sale or sale at retail. Means a sale to a consumer or to any person for
any purpose in the form of tangible personal property, other than for resale, or
services taxable under this chapter, and includes any transaction as the city manager,
upon investigation, finds to be in lieu of a sale. Sales for resale must be made in strict
compliance with this chapter. Any person making a sale for resale which is not in
accordance with this chapter shall himself be liable for payment of the tax. "Retail
sale" or "sale at retail" includes but is not limited to:
(1) Cash or in -kind consideration for the sale or charges for any room or
rooms, lodging, accommodations or board furnished by an owner or
contractor in any hotel, motel, inn, industrial facility, tourist camp,
tourist cabin, camping grounds, club or any other place in which
rooms, lodging space or accommodations or board are regularly
furnished to transients or residents for consideration. In case of such
2 6
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
rooms, lodging, space, accommodations or board furnished by owners
or contractors, the owners or contractors shall pay the tax;
(2) Sales of tangible personal property to personas for resale if, because
of the operation of the business or its very nature, or the lack of a
place of business in which to display a certificate of registration, or
the lack of a place of business in which to keep records, or the lack of
adequate records, or because the persons are engaged in essentially
service businesses, or for any other reason, there is likelihood that the
city will lose tax funds due to the difficulty of policing the business
operations. The city manager may require vendors or sellers to such
persons to collect the tax imposed by this chapter on the cost price of
the tangible personal property sold to such persons and may refuse to
issue certificates of registration to such persons;
(3) The rendition of any taxable service;
(4) The purchase of supplies and equipment used or consumed in the
fabricating of an article of tangible personal property or in the
performance of a taxable service.
Sale. Means for consideration, any transfer of title or possession, or both,
exchange, barter, lease or rental, conditional or otherwise, in any manner or by any
means whatsoever, of tangible personal property, any lease or rental of real property,
and any rendition of a taxable service, and includes the fabrication of tangible
personal property for consumers who furnish, either directly or indirectly, the
materials used in fabrication; and the furnishing, preparing, or serving for a
consideration of any tangible personal property consumed on the premises of the
person furnishing, preparing or serving such tangible personal property. A transaction
whereby the possession of property is transferred, but the seller retains title as
security for the payment of the cost price is a sale.
Storage. Means any keeping or retention of tangible personal property for use,
consumption or distribution in this city, or for any purpose other than the sale at retail
in the regular course of business.
Tangible personal property. Means personal property which may be seen,
weighed, measured, felt or touched, or is in any other manner perceptible to the
senses. "Tangible personal property" does not include stocks, bonds, notes, insurance
or other obligations or securities.
Taxable sale. Means every sale of tangible personal property and every lease
or rental of tangible personal or real property.
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
Taxable service. Means any service whatsoever, whether professional,
personal, pursuant to contract, subcontract, or otherwise, excluding only services
rendered by an employee to an employer.
Tobacco products. Means:
(1) A cigar;
(2) A cigarette;
(3) A cheroot;
(4) A stogie;
(5) A perique;
(6) Snuff and snuff flour;
(7) Smoking tobacco, including granulated, plug -cut, crimp -cut and
ready- rubbed tobacco, and any form of tobacco suitable for
smoking in a pipe or cigarette;
(8) Chewing tobacco, including cavendish, twist, plug, scrap, and
tobacco suitable for chewing; or
(9) An article or product made of tobacco or tobacco substitute but not
including a tobacco.
Section 2. Seward City Code Section 5.35.035 is amended as follows:
Strikeout = delete Bold Italics = new
5.35.035. Imposition of sales tax.
(a) There is levied and imposed, in addition to all other taxes and fees of every
kind now imposed by law, a consumer's sales tax on all retail sales of tangible
personal property, the lease or rental of tangible personal property or real
property, and the purchase of taxable services, the same to be collected in the
amount of three percent of the gross proceeds of each taxable sale or taxable
service. Bcginning April 1, 2003, the The sales tax amount to be collected
shall be four percent of the gross proceeds of each taxable sale or taxable
service.
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -003
(b) Effective January 1, 2012, in addition to the sales tax levied and collected
under subsection (a) of this section, there shall be levied and collected an
additional sales tax equal to ten percent of the gross proceeds of the retail
sale of alcoholic beverages and tobacco products sold in the city.
(c) The obligation to pay the sales tax is on the purchaser, consumer, renter, or
lessee. The seller, retailer, dealer, service provider, lessor, and all persons
making a retail sale, shall collect the sales tax at the time of payment for the
retail sale, taxable sale, or taxable service, and shall remit all sales taxes
collected under this chapter to the Kenai Peninsula Borough in accordance
with AS 29.35.170 and Chapter 5.18 of the Kenai Peninsula Borough Code.
Section 3. The change,to the City's sales tax rate for alcoholic beverages and tobacco
products are for the purposes of generating funds to pay annual debt service on the Bond and
costs of the Project, including annual operating costs of the Project.
Section 4. Sections 1 and 2 of this ordinance shall become effective January 1, 2012. This
ordinance shall take effect 30 days following passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
day of ,2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
c,
Council Agenda Statement {.
4 a
Meeting Date: May 9, 2011
v
l AS P
From: Phillip Oates, City Manager
Agenda Item: Increase in sales tax on alcohol and tobacco to fund library/museum project
BACKGROUND & JUSTIFICATION:
The Seward City Council ( "Council ") has been diligently seeking revenue sources to fund the capital and
operating costs associated with the Library/Museum Project ( "Project "), following approval by voters at an
election on October 6, 2009, of a general obligation bond in an amount not to exceed $5 million. At that same
election, voters were asked by way of an advisory vote (advisory votes are not binding on the City Council but are
intended to gauge the level of public support for or against a particular issue), whether they supported a 0.5%
increase in the sales tax rate (from 4% to 4.5 %) to cover a portion of the operating and capital costs of the
Project. Voters rejected the question by a vote of 288 to 233 (56% to 44 %).
As a result of the election outcome, the City Council began to evaluate a number of other potential revenue
alternatives to fund the Project (seasonal sales tax, property tax, user fees). Council rejected the idea of an
increase in the property tax mill rate on January 24, 2011, via Resolution 2010 -0130, based in part, on the fact
that property taxes in Seward impact less than 700 individuals since so much property in Seward is tax - exempt.
This revenue source would not fairly spread the burden of financing the project among the potential users of the
library/museum. Since that alternative was rejected, Council requested to concurrently address three possible
funding alternatives at the same council meeting: seasonal sales tax increase, year -round sales tax increase, and
increase in the sales tax rate for alcohol /tobacco.
The City Council requested information regarding options to tax alcohol and tobacco. At a city council
worksession on April 25, 2011, and in a memorandum to the city council of the same date, the city attorney
summarized the legal issues related to various funding alternatives. In the fmal analysis, the best option appeared
to be an increase in the sales tax rate on sales of alcoholic beverages and tobacco products. Taxing both items at
the same rate meets the requirements of AS 04.21.010(c)(2). The Kenai Peninsula Borough would collect and
remit the tax as it currently does, in accordance with AS 29.35.170. Based on input from the Borough fmance
director, it is expected that this differential rate will be a burden on the Borough initially, with an estimated up-
front cost of approximately $85,000 to $100,000, which the Borough would possibly expect the City to cover.
Ongoing annual cost increases, if any, are expected to be nominal.
The other alcohol /tobacco tax scenarios which were examined by the administration and the city council included
the following: 1) property taxes on alcoholic beverage inventories (rejected because AS 29.45.090(a) requires
that all property on which an ad valorem tax is levied, shall be taxed at the same rate during the year, and the
City' s current mill rate of 3.12 mills would generate very little additional tax revenues); 2) sales tax on the
wholesale sales of alcohol (rejected because a tax on wholesale sales of alcohol may be prohibited as double
taxation since the City currently taxes alcohol at the retail level, as well as the question of whether there would
actually exist wholesale sales of alcohol in Seward which would trigger a taxable event, due to the required nexus
for a taxable sales to occur); and 3) an excise tax on the importation of tobacco and alcohol (rejected because an
excise tax on alcohol is not allowed by State law, and since we have an existing sales tax on tobacco product
sales, we could not also have an excise tax due to the issue of double taxation; and 4) other individual (as opposed
to combined) property tax and/or sales tax options on either alcoholic beverages or tobacco products.
30
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:
ATTORNEY REVIEW y+ Yes No
FISCAL NOTE
The administration requested information from alcoholic beverage distributors, as well as local businesses
engaged in the sale of alcohol and tobacco, in order to estimate the revenues to be generated from an additional
10% increase in sales tax. Unfortunately, most vendors were unwilling to provide the requested information for
fear that the information would not remain confidential. The State of Alaska was unable to provide estimated
gross sales figures for alcohol because the data they collect is based on regional area and is not community-
specific. The Kenai Peninsula Borough was unable to provide estimated gross sales figures for alcohol and
tobacco because the information they collect is aggregated and does not break out alcohol /tobacco sales from all
other gross or taxable sales data. Therefore, the finance department cannot estimate, with any degree of certainty,
the potential revenues to be collected from a 10% increase in sales tax on alcohol and tobacco sales. Anecdotally,
a member of the city council made calls to several local businesses prior to the council officially deciding to
research an alcohol /tobacco tax, and the results of this research estimated gross sales of approximately $4 million
to $4.5 million, but the administration is unable to verify this estimate. At that rate of sales, a 10% increase in the
sales tax rate could potentially generate up to $450,000 per year, assuming those sales are all taxable.
Approved by Finance: `
RECOMMENDATION
Seward City Council approve Ordinance 2011 - , increasing the sales tax rate for alcohol and tobacco sales
from the current 4% to 14 %, effective January 1, 201.
31
Sponsored by: Oates
Introduction: January 10, 2011
Public Hearing: January 24, 2011
Postponed to: February 14, 2011
Postponed to: March 14, 2011
Postponed to: April 11, 2011
Postponed to: April 25, 2011
Postponed to: May 23, 2011
Enactment:
CITY OF SEWARD, ALASKA
ORDINANCE 2010 -009
A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING SEWARD CITY CODE SECTION 5.35.055 TO
CREATE A REVENUE SOURCE FOR REPAYMENT OF UP TO A
$3.73M 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
WHEREAS, the City of Seward and the Seward Community Library Museum Building
Committee have been working since 2003 to obtain funding and design a new library museum;
and
WHEREAS, the Seward Community Library Museum Building Committee and the City
of Seward have secured $5.1 Million in State and private foundation funding and $1.1 Million in
grant applications are pending; and
WHEREAS, in October 2009 voters approved a General Obligation bond in an amount
not to exceed $5 Million for construction of the library/museum; and
WHEREAS, the administration and project managers have estimated that up to $3.73
Million will be needed to complete the project as currently projected; and
WHEREAS, the annual debt service cost for up to a 25 -year $3.73 million General
Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year; and
WHEREAS, a revenue source is necessary to establish and pay the debt service on a
General Obligation Bond; and
WHEREAS, sales tax is a revenue source by which city residents, local residents, and
visitors will all contribute to the construction and operating costs of the new library museum; and
-,9
CITY OF SEWARD, ALASKA
ORDINANCE 2010 -009
WHEREAS, the current City of Seward sales tax rate is 4% and is combined with a
Kenai Peninsula Borough sales tax rate of 3% for a total rate of 7 %; and
WHEREAS, a variable seasonal sales tax that increases the current City of Seward sales
tax 1% to a rate of 5% from April through September and decreases the current City of Seward
sales tax 1% to a rate of 3% from October through March would generate approximately
$348,000 in additional tax revenue each year for the City; and
WHEREAS, the variable seasonal sales tax would result in a combined Borough and
City sales tax rate of 8% from April through September and 6% from October through March;
and
WHEREAS, the variable seasonal sales tax proposed above would keep year -round taxes
at current levels for full -time residents of Seward when their purchases are spread equally
throughout all months of the year; and
WHEREAS, the combined Kenai Peninsula Borough and City of Seward variable
seasonal sales tax of 8% from April through September and 6% from October through March is
expected to provide sufficient revenue to repay principal and interest on up to a 25 year $3.73
Million General Obligation Bond, allow completion of the new library museum project, and
provide approximately $99,000 annually to assist in paying for the increases in personnel and
operating costs for the new library museum; and
WHEREAS, according to State law, a tax imposed solely for the purpose of repayment
of debt is not subject to voter referendum, however in this case, the seasonal sales tax will
generate more annual revenues than is necessary solely to repay debt, and will therefore this
ordinance may be subject to a voter referendum; and
WHEREAS, the current City Council of the City of Seward recommends to a future City
Council that this sales tax change should sunset when the up to a $3.73 Million General
Obligation Bond is paid in full.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Section 5.35.055 is amended as follows (strike out =
deletions; bold italics = additions):
5.35.055. Computation; addition of tax to total retail price; tax schedule.
(a) The amount of the sales tax to be added to the sales price, charge or rental shall be
three (3) percent from October 1 through March 30 and five (5) percent from April
1 through September 30 of the sale price, charge or rental rounded off to the nearest
33
CITY OF SEWARD, ALASKA
ORDINANCE 2010 -009
cent by eliminating any fraction of one -half cent or less and by increasing any fraction
over one -half cent to the next highest cent. Each seller shall be furnished the schedule
of tax payable on each taxable amount from $0.01 to $100.00. Any one sale of items
separately priced shall be taxed upon the aggregate amount. Beginning April 1, 2003,
(b) The revenue from a coin - operated machine shall be treated in gross on a monthly
basis, without reference to the amount paid or placed on a particular transaction.
Section 2. These changes to the City of Seward sales tax rates are for the purpose of
paying the annual debt service for up to a 25 -year $3.73 Million General Obligation Bond, to
complete the library museum project, and to cover a portion of the added annual operating costs.
Section 3. Section 1 of this ordinance shall become effective April 1, 2011. This
ordinance shall take effect 30 days following passage and posting.
ENACTED by the City Council of the City of Seward, Alaska, this day of
2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney
City Clerk
(City Seal)
3 4
Council Agenda Statement
{of S ,
u
Meeting Date: January 10, 2011
From: Phillip Oates, City Manager 1 4 - 50
Agenda Item: A ordinance of the City Council of the City of Seward, Alaska,
amending Seward City Code Section 5.35.055 to create a
revenue source for repayment of the $3.73M 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.
BACKGROUND & JUSTIFICATION:
Since 2003, the City of Seward has been working on a plan to build a new library museum. As
of November 2010 architects completed design documents to 65% with a goal of completing
construction documents in January, ground breaking in April -May 2011, and completion of the
project in August 2012. Project and construction management have been hired.
The Seward Community Library Museum Building Committee (SCLMBC) has spearheaded
project predevelopment activities and fundraising efforts. SCLMBC and City Administration
have presented over thirty Resolutions to Council since 2003 that either supported, funded or
authorized the project progress. As a result, the City received an appropriation of $4.7M from the
State of Alaska in July. The Rasmuson Foundation committed $500,000 in November and $1.1M
in grant applications have been submitted.
In October 2009 voters approved a General Obligation (GO) bond in an amount not to exceed $5
Million for construction of the library museum. Since that approval, City Administration and
project managers have estimated that as currently projected $3.73 Million will be needed to
complete the project. This ordinance requests that the City Council create a variable seasonal
sales tax as a source of revenue to repay the proposed $3.73M GO bond as the City of Seward
portion of the cost of constructing the library museum. A sales tax is a revenue source where city
residents, local residents, and visitors all contribute to the construction and operations costs of
the new library museum.
The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate
of 4.5% is approximately $249,000 per year. A variable seasonal sales tax that increases the
current City of Seward sales tax 1% to a rate of 5% from April through September and decreases
the current City of Seward sales tax 1% to a rate of 3% from October through March would
generate approximately $348,000 in additional tax revenue annually for the City. Such a variable
seasonal sales tax would result in a total Borough and City sales tax rate of 8% from April
through September and 6% from October through March. This variable seasonal sales tax would
keep year -round taxes at current levels for full -time residents of Seward when their purchases are
spread equally throughout all months of the year.
The City of Seward variable seasonal sales tax of 5% from April through September and 3%
from October through March is expected to provide sufficient revenue to repay principal and
interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new
library museum project, and provide approximately $99,000 annually to assist in paying for the
increases in personnel and operating costs for the new library museum. The proposed ordinance
also establishes a recommendation from the current City Council to a future City Council that
this sales tax change should sunset when the $3.73 Million General Obligation Bond is paid in
full.
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.
INTENT:
This ordinance requests that the City Council create a variable seasonal sales tax as a source of
revenue to repay the proposed $3.73M GO bond as the City of Seward portion of the cost of
constructing the library museum.
ATTORNEY REVIEW: Yes
FISCAL NOTE:
The variable seasonal sales tax covers capital debt annual payments and provides approximately
$99,000 per year for increased personnel, maintenance, and operating costs of the new library
museum. Estimated additional annual personnel, maintenance, and operating costs - as noted in
the business plan - are $260,000. This leaves a shortfall of approximately $161,000 dollars each
year since annual funding to cover the remainder of these costs has not been identified.
There are three important points to note here. First, because the proposed seasonal sales tax will
generate more money than is needed to cover the annual debt service payments on the bonds, this
ordinance may be subject to voter referendum. Second, the City Council has expressed its intent
to delay identifying additional revenues to cover the remaining shortfall related to operating
costs until preparation of the biennial budget. This annual shortfall is estimated at $161,000
even after the seasonal sales tax is implemented. To cover costs of this magnitude would
require, for example, an increase in the mill rate of 0.54 mills equal to $108 per year on a house
valued at $200,000 or, alternatively, a 0.18 percent increase in the sales tax rate. However, if a
funding source for these costs is not identified prior to submittal of a bond application to the
Alaska Municipal Bond Bank, it will weaken the City's application for bond financing. Third, if
the seasonal sales tax sunsets upon maturity of the bonds, there will be an additional annual
operating cost shortfall at that time of approximately $99,000 (based on today's costs).
Approved by Finance Department ✓„4� - ' ��;��
RECOMMENDATION: CJ
Approve Ordinance 2010 -009 to establish a variable seasonal city sales tax as a revenue source
to pay the debt service of a $3.73M GO Bond for the library museum project.
-
Sponsored by: Oates
Introduction: April 11, 2011
Public Hearing: April 25, 2011
Postponed to: May 23, 2011
Enactment:
CITY OF SEWARD, ALASKA
ORDINANCE 2011 -002
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, INCREASING THE CITY SALES TAX
FROM FOUR PERCENT TO FOUR - AND - ONE -HALF PERCENT,
BEGINNING JANUARY 1, 2012
WHEREAS, the Seward City Council passed Resolution 2010 -129 on January
24, 2011, authorizing the issuance of general obligation bonds in a principal amount not
to exceed $3.73 million to pay for library /museum capital improvements; and
WHEREAS, prior to Council approval of a general obligation bond issue, an
election was held on October 6, 2009 at which the voters agreed by a vote of 301 to 203
(Proposition 3) to incur debt and issue general obligation bonds in an amount not to
exceed $5 million for financing capital improvements related to the library museum; and
WHEREAS, during the election of October 6, 2009, voters rejected by a vote of
288 to 233, an advisory question (advisory questions are not binding on the City Council)
asking whether they favored an increase in the sales tax rate from 4.0% to 4.5% to cover
a portion of the proposed library /museum operating and construction costs; and
WHEREAS, since that time, the Seward City Council has diligently sought
revenue alternatives to generate the funds to pay for capital and operating costs
associated with the library /museum, including a seasonal sales tax, an alcohol /tobacco
tax, and a property tax increase equal to one mill which was rejected by the Council on
January 24, 2011 via Resolution 2010 -0130, with each of these options resulting in
apparent insurmountable legal and practical challenges to implementation; and
WHEREAS, the City Council finds that the library /museum project has
generated substantial support in the community, sufficient to warrant an increase in sales
taxes necessary to fund construction and operations of the project; and
WHEREAS, the City Council has exhausted viable funding options for the
library /museum project, and finds that an increase in the sales tax rate is the most
equitable way to raise funds to pay for the project, since it spreads the burden of the costs
of the project to individuals who live in Seward, as well as those who will visit Seward
and utilize the library /museum.
f,
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1: Section 5.35.035, Imposition of sales tax, subsection 5.35.035(A), is
hereby amended to read as follows (Strikeout = delete; Underline = add):
A. There is levied and imposed, in addition to all other taxes and fees of every
kind now imposed by law, a consumer's sales tax on all retail sales of tangible
personal property, the lease or rental of tangible personal property or real
property, and the purchase of taxable services, the same to be collected in the
amount of three (four) percent of the gross proceeds of each taxable sale or
taxable service. Bcginning April 1, 2003, the sales tax amount to be collected
service. Beginning January 1, 2012, the sales tax amount to be collected shall
be four -and- one -half percent (4.5 %) of the gross proceeds of each taxable sale
or taxable service.
Section 2: Seward City Code Section 5.35.055, Computation; addition of tax to
total retail price; tax schedule, subsection 5.35.055 (A), is hereby amended to read as
follows (Stfikeout = delete; Underline = add):
5.35.055. Computation; addition of tax to total retail price; tax schedule.
A. The amount of the sales tax to be added to the sales price, charge or rental
shall be three (3) four (4) percent of the sale price, charge or rental rounded
off to the nearest cent by eliminating any fraction of one -half cent or less and
by increasing any fraction over one -half cent to the next highest cent. Each
seller shall be furnished the schedule of tax payable on each taxable amount
from $0.01 to $100.00. Any one sale of items separately priced shall be taxed
upon the aggregate amount. Beginning April 1, 2003January 1, 2012, the
amount of the sales tax to be added to the sale price, charge or rental shall be
increased by one one -half percent to four and one -half percent (4.5 %) of the
sale price, charge or rental.
Section 3. This Ordinance shall take effect thirty (30) days following its
enactment.
ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA this 23 day of May, 2011.
V V
Council Agenda Statement
Meeting Date: April 11, 2011 I s ;_
From: Phillip Oates, City Manager I
Agenda Item: Increase in sales tax rate to fund library/museum project
BACKGROUND & JUSTIFICATION:
The Seward City Council ( "Council ") has been diligently seeking revenue sources to fund the capital and
operating costs associated with the Library/Museum Project ( "Project "), following approval by voters at an
election on October 6, 2009, of a general obligation bond in an amount not to exceed $5 million. At that same
election, voters were asked by way of an advisory vote (advisory votes are not binding on the City Council but
are intended to gauge the level of public support for or against a particular issue), whether they supported a
0.5% increase in the sales tax rate (from 4% to 4.5 %) to cover a portion of the operating and capital costs of
the Project. Voters rejected the question by a vote of 288 to 233 (56% to 44 %).
Since the election, Council has evaluated numerous possible revenue alternatives to fund the Project. Council
rejected the idea of an increase in the property tax mill rate on January 24, 2011, via Resolution 2010 -0130,
based in part, on the fact that property taxes in Seward impact Tess than 700 individuals since so much property
in Seward is tax - exempt. This revenue source would not fairly spread the burden of financing the project
among the potential users of the library/museum.
The Seward City Council evaluated a seasonal sales tax option in March and April, 2011, but after hearing
from the Kenai Peninsula Borough ( "KPB" or `Borough ") finance director at a work session on March 14, was
informed that a seasonal sales tax option places a significant hardship on KPB as well as on local businesses.
Specifically, the KPB finance director estimated that costs associated with a Borough effort to implement a
seasonal sales tax in Seward would exceed $100,000. Not only would the Borough likely expect to pass the
cost on to the City of Seward, but they could not guarantee their computer system could be modified to
facilitate the change. When asked about the existing seasonal sales tax in Seldovia — and why Seward was a
challenge if the seasonal tax was already in place in Seldovia -- Council members were told that the Borough
and local Seldovia businesses were experiencing considerable problems, including: Borough staff had to
manually adjust every tax return to properly compute tax liability; taxpayers had difficulty understanding how
to properly compute and report the tax; businesses often did not have the technical capabilities or the computer
systems in place to accomplish the reporting; there was considerable confusion regarding the appropriate tax
rate to use at the time of the sale versus the time of the service (for example, a sale that takes place in January
at a lower rate of tax, for a service that will be provided in July when the tax rate is higher). Ultimately, the
Borough finance director strongly urged the Council not to consider a seasonal sales tax, and based on the
potential cost to the City and the fact that Seward business filers could face up to six different tax schemes at
various times of the year, the administration agrees that the seasonal sales tax is not a good option.
The City Council has also requested information regarding the possibility of imposing an alcohoUtobacco tax.
This option is very complex and involves legal and practical obstacles which appear to be insurmountable. For
example:
a. State law requires that if alcohol is to be taxed at a higher rate than other general sales tax items, at
least one other item must be charged at that higher rate. This results in a variable sales tax rate which
the Borough is unwilling to administer. For the City to administer a variable sales tax, a significant
•
investment in software, additional staffing for administration and collections, and legal fees associated
with collections, would be required. While this is legally possible, it is very costly.
b. The administration considered a possible tax on the wholesale rather than retail price, in order for City
staff to handle the administrative requirements of the variable tax (there would be considerably fewer
wholesale rather than retail filers, and therefore, presumably less cost and burden). However, for
various reasons, this is not a viable legal option. (For example, we cannot have both a wholesale and a
retail tax on alcohol/tobacco; a wholesale tax would require a taxable transaction to occur within the
City limits, and this option does not preclude taxpayers' buying alcohol and tobacco outside of Seward
in order to avoid tax liability.)
c. Consideration was given to an excise tax which is essentially a tax on the importation of tobacco and
alcohol, but we are not legally allowed to have an excise tax on alcohol, and since we have a sales tax
on tobacco sales, we cannot also implement an excise tax on tobacco.
There are numerous other challenges associated with various efforts to tax alcohol and tobacco, and those will
be discussed by the City Attorney in detail, at the Council meeting of April 25, 2011.
Another option evaluated by the administration is the possible use of existing City resources (cash) to fund the
project. While it may seem a preferred alternative to raising taxes, it has significant risks which have the
potential to cause serious financial harm to the City. Such a strategy is ill-advised based in part, on the
following:
1. For more than a decade, the City has failed to meet its own policy of maintaining 3 -6 months'
General Fund reserves, for the purpose of meeting unforeseen needs and emergencies, or
covering deficits in other City funds. In 2010, the City received a one -time EXXON Valdez
oil spill settlement which enabled us to finally reach the lower end of the recommended range
of adequate reserves. The level of reserves is one of the most significant indicators of fiscal
health ofa City; insufficient reserves can be a serious problem. Over the years, "unforeseen
needs and emergencies" have not been uncommon and have resulted in numerous unexpected
major draws on General Fund reserves (closure of the hospital; Harbor deficits; SMIC
deficits; natural disasters; Sewage lagoon failure; Water /Sewer fund debt elimination, hospital
operating losses, etc.)
2. The General Fund is legally responsible to cover deficits in all City funds. The SMIC Fund
has operated in the red for many years, requiring subsidy from the General Fund. The Harbor
Enterprise Fund and the Electric Enterprise Fund both failed to meet bond reserve
requirements in 2009 (for the first time in decades) based on escalating costs, lower passenger
numbers, unexpected major repairs, insufficient rate structures, etc. These challenges reflect
structural budget problems which require a disciplined longer -term financial strategy to
resolve. For two consecutive years, harbor passenger fees were not sufficient to cover the
costs of bonded debt in the harbor. Prior year passenger fee surpluses covered the shortfall,
but those funds are nearly depleted and will not be available if passenger fee levels do not
return to previous levels.
3. The capital budget process identified critical repair and replacement needs in enterprise funds,
where resources are not in place to meet those needs. Many of the most critical needs have
not been funded, let alone other important capital needs, due to lack of cash in the enterprise
funds. In addition, enterprise funds have not been contributing to major repair and
replacement or depreciation Funds, due to lack of cash, opposition to rate increases, and
public pressure to spend cash. This has left the City is the position of having little to no cash
43
on -hand in the enterprise funds to pay for major repairs, and with a financial condition that is
not likely to support the issuance of future debt without alternative or increased revenue
sources. If an enterprise fund has no resources to cover major unavoidable repairs, it cannot
simply go to the bank to borrow money, or issue bonds. Rather, it must borrow reserves from
the General Fund until such time as it can return to a positive cash position. In 2010, the
Harbor, SMIC, and Electric Funds all borrowed from the General Fund at some point in the
year to pay their bills (they had run out of cash). That is a warning sign that cannot be
ignored.
4. The City faces risks associated with national changes to healthcare and the corresponding
unknown impact of those changes on the financial health of our hospital and long -term care
facilities. Any financial losses in those operations will be borne by the taxpayers, are difficult
to project in advance, have not been budgeted, and can be substantial.
5. Previous reserves in the Motor Pool Fund — which were being accumulated in order to replace
existing heavy equipment and vehicles in a systematic manner to avoid single year negative
budgetary "hits" and the need to pay interest from financing equipment -- have been borrowed
to cover other City needs (such as paying off retirement costs associated with hospital PERS).
The amount of cash reserves in that fund at the end of 2010 is approximately equal to the
principal balance owed on outstanding loans on equipment being financed by the Motor Pool.
The purpose of the Fund is to eliminate borrowing costs, but because cash has been used for
other purposes, the City continues to pay interest to borrow for heavy equipment needs.
There are other reasons why utilizing existing City resources to construct a library/museum poses a significant
risk to the financial health of the City, but these highlights identify the major reasons.
The City Council and administration have both worked very hard to identify potential sources of funding for
this project that do not involve sales tax. This project has received wide community and statewide support.
Seward taxpayers rejected the idea of a one - half - percent increase in the sales tax rate when they voted in
October 2009. At that time however, it is unlikely that anyone could have foreseen the difficulties of finding a
viable funding source that did not involve sales tax. The administration finds that there are few, ifany, funding
alternatives. Unfortunately, a modification to the sales tax rate appears to disenfranchise the voters who
rejected that option during the advisory vote. However, it would appear that this option may be the only viable
option for funding the project which was approved by the voters in 2009. Ultimately, the difficulty we face in
identifying a viable funding solution makes it all the more important that we develop a plan before we move
forward with major project commitments. Without a clear and viable revenue source to pay for the project, it is
ill- advised to begin construction.
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:
ATTORNEY REVIEW X Yes No
FISCAL NOTE
The imposition of an additional 0.5% year -round sales tax can be expected to generate approximately
$450,000 per year. Assuming that the project moves forward soon, bonds are issued within one year, and
additional operating costs are capped at $150,000 per year (as opposed to the previous estimated cost of
$260,828),: this funding level will support a $3.5 million bond over either 20 or 25 years. The costs over
20 years would be approximately $445,000 per year; over 25 years would be approximately $420,000 per
4i
year. Alternatively, if the project were postponed long enough to accumulate two years' worth of
additional tax revenue, it may be possible to reduce the term of financing to 10 years or less. It would take
approximately 8 years to accumulate sufficient revenues from a 0.5% sales tax increase to fully pay for the
construction costs without borrowing money, assuming no increase in construction costs. Clearly, costs
would be expected to increase over time, the longer construction is delayed.
Approved by Finance: ii
RECOMMENDATION 'V
Seward City Council approve Ordinance 2011- , increasing the sales tax rate from 4.0% to 4.5 %.
•
42
Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -038
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO
CHANGE ORDER NUMBER ONE FOR AN AMOUNT NOT -TO- EXCEED
$7,538 FUNDED BY THE EECBG GRANT FOR A WINDOW UPGRADE
AND PROVIDING AN EXTENSION OF TIME TO COMPLETE WORK
BY JUNE 30, 2011
WHEREAS, Resolution 2010 -060 was approved on July 12, 2010 and the City Council
authorized the City Manager to enter into a Grant Agreement with the Alaska Energy Authority
Community Block Grant (EECBG) and to accept grant funds in the amount of $115,800 to the
Energy Grant Fund number 306 - 3062 - 4680 -0100; and
WHEREAS, the City of Seward was awarded grant money to improve energy efficiency
throughout the city and Resolution 2010 -060 authorized the City Manager to purchase the
equipment and supplies included in the grant application scope of work and to pursue contracted
services; and
WHEREAS, the grant allocated funding for several windows and four door replacements
in the Fire Hall and Public Works building as specifically defined in the scope of work; and
WHEREAS, the City developed a competitive bid package for the windows and doors
scope of work and advertised in accordance with SSC6.10.210 and SCC6.10.215; and
WHEREAS, Plum Tree, Inc. was the lowest qualified and responsible bidder; and
WHEREAS, Resolution 2010 -11 authorized the city manager to enter into an agreement
with Plum Tree Inc. for $31,440; and
WHEREAS, in December, Plum Tree Inc. submitted their specifications for materials
and in review of the options available for windows under consideration an alternative window
was proposed for an increase in costs of $7,538; and
WHEREAS, this expense is fully reimbursed by the EECBG grant funds; and
WHEREAS, the windows have a higher thermal value to give the City a substantial,
long -term energy savings; and
WHEREAS, the windows have a superior warranty and are manufactured in the State of
Alaska.
t; 3
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -038
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
SEWARD, ALASKA:
Section 1. It is in the public's best interest to authorize the City Manager to enter into
change order #1 for the upgrade of windows and extension of time until June 30, 2011.
Section 2. The City Manager is hereby authorized to enter into change order #1, as
presented at this meeting, with Plum Tree, Inc. to authorize the window upgrade.
Section 3. Funding for this project will come from the Energy Grant Fund account
number 306 - 3062 -5390.
Section 4. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of
May, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC,
City Clerk
(City Seal)
I
Ct-I
Council Agenda Statement
Meeting Date: May 23, 2011
r {of SF%
9
To: Phillip Oates, City Manager u k '�o
.r
From: William Casey, Public Works P
41 4:4 - 0- 1 *
Agenda Item: EECBG Window and Door Replacement Change
Order #1
BACKGROUND & JUSTIFICATION:
The City of Seward was awarded funding for the Alaska Small Cities grant with the Alaska Energy
Authority (EECBG) energy grant. A portion of the grant was allocated for the replacement of several
of the windows in two public facilities (Fire Hall & Public Works); the replacement of four doors at
the Public Works Department, and the necessary exterior window trim and painting around the
windows and doors was included.
The City of Seward advertised and solicited a formal Invitation to Bid for the window and door
replacement. Interested contractors submitted formal bids for the window and door replacement.
The City of Seward determined that Plum Tree Inc. was the lowest, qualified and responsible bidder
and awarded a contract for $31,440 on November 22, 2010. In December, Plum Tree Inc. submitted
their specifications for materials. In review of the options available for windows under consideration
an alternative window was proposed for an increase in costs of $7,538. This expense will be fully
reimbursed by the EECBG grant funds.
The City's preferred window upgrade included a higher quality window with a higher R -Value (a
measure of the thermal resistance used in the building and construction industry). It has a greater
thermal resistance of 5.88 versus 4.0 of which would give a substantial energy savings. The window
also comes with a fifty year warranty which far exceeds the original consideration. The quality of
this window is far superior as it is a triple plane, fiberglass, 2 low E coating & 2 argon filled. The
window comes with a lifetime warranty on hardware and it also has a triple weather seal as opposed
to a single on the sliding window. With the amount of salt, sand and grit within the Seward area, it
was far more weather resistant than the sliding window and it has a better seal to protect driving
wind and rain. The window upgrade is manufactured in the State of Alaskan by Pioneer Glass, Inc.
out of Fairbanks, Alaska.
The City Public Works Department has been working with Plum Tree Inc. to assure all submittals
are ARRA complaint, made in America. Some of the hardware on the public works door
replacement scope of work has been difficult if not impossible to find American made products. The
justification has been timely with the suppliers and caused delays in the proposed schedule of work.
As a result, the City would like to extend the contract from May 15, 2011 to June 30, 2011 to ensure
enough time for quality work. The doors and hardware are scheduled to arrive by May 20
INTENT: To authorize the City Manager to enter into change order #1 with Plum Tree Inc. for a
total of $7,538 to fund the upgrade of windows and extend the contract timeline until June 30, 2011
45
FISCAL NOTE: Funding for this pr ject is available from State grant funds.
Approved by Finance Department: VJe�u•
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
City Council approve Resolution 2011-04 authorizing the city manager to enter change order #1
with Plum Tree, Inc. in the amount of $7,538 for the purpose of the window upgrade and extension
of time until June 30, 2011.
Apr 28 11 12:53p
p.1
Pl um Tree Homes Inc.
10250 Sextant Circle Anchorage, AK 99515
907 - 317 -5368 Cell / 907 344 -3893 Fax
Attn: Kirsten Vesel 412811
The infonnation on the Alaskan window upgrade has already been submitted, However, please note the
cost difference for the change order will be $7,538 added to the total cost.
Thank -You,
ellyn E. Sliwinski
Vice- President
47
Plum T ree Homes Inc.
10250 Sextant Circle Anchorage, AK 99515
907 -317 -5368 Cell /907 -344 -3893 Fax
ATTN: April 27, 2011
Mrs. Vesel
In review of the options available for the windows under consideration for the City of Seward Plum
Tree would like you to consider an alternative window. The window Plum Tree wishes you to consider
is manufactured in the State of Alaska. It has a greater thermal resistance of 5.88 versus 4.0 of which
would give a substantial energy saving. The window also comes with a fifty year warranty which far
exceeds the original consideration. The quality of this window is far superior as it is a triple pane,
fiberglass, 2 low E coatings & 2 argon filled. The window comes with a life time warranty on hardware
& it also has a triple weather seal as opposed to a single on the sliding window. With the amount of salt,
sand and grit within the area it would be far more weather resistant than a sliding window would be. Also,
based on Local climate it has a far better seal to protect from driving wind and rain.
In conclusion, Plum Tree would strongly recommend the usage of this select window for the City of
Seward based on its performance verses cost ratio.
Appreciate Your Time & Careful Consideration,
hn K. Sliwinksi
President
i i 3
e oy sestet CITY OF SEWARD, ALASKA
. CHANGE ORDER
4 LAs p
CHANGE ORDER NO.1
DATE: May 23, 2011
NAME OF PROJECT: EECBG Window and Door Replacement
CONTRACTOR: Plum Tree, Inc.
The following changes are hereby made to the CONTRACT DOCUMENTS:
Reference: Modification to the terms of the agreement.
Contract 1: Notwithstanding the foregoing, payment under this Contract shall not exceed
Thirty One Thousand Four Hundred Forty dollars ($31,440) for all base items, additional
work, and change order.
Change 1: Notwithstanding the foregoing, payment under this Contract shall not exceed Thirty
Eight Thousand Nine Hundred Seventy Eight dollars ($38,978) for all base items, additional work,
and change order.
Contract 2: The Contractor further covenants and agrees that all materials shall be
furnished and delivered and all work and labor shall be done and performed, in every
respect, to the satisfaction of the City, on or before: May 15, 2011.
Change 2: The Contractor further covenants and agrees that all materials shall be furnished and
delivered and all work and labor shall be done and performed, in every respect, to the satisfaction
of the City no later than: June 30, 2011.
CHANGE ORDER NO. 1 Page 1of 2
43
All other portions of the contract remain unchanged.
Requested by the City of Seward
Ordered by City Manager
Accepted by Contractor
CHANGE ORDER NO. 1 Page 2of 2
5 3
CITY OF SEWARD, ALASKA
CONSTRUCTION CONTRACT
EECBG Windows and Doors
PROJECT NAME
This CONTRACT ( "Contract "), between the City of Seward, Alaska, herein called the
City, acting by and through its City Manager, and upon signing; this document shall
serve as the notice to proceed.
Plum Tree, Inc.
Company Name
10250 Sextant Circle; Anchorage, AK 99515
Company Address (Street or PO Box, City, State, Zip)
alan E Individual [Partnership [Joint Venture flSole Proprietorship X
Corporation incorporated under the laws of the State of Alaska, its successors and
assigns, herein called the Contractor, is effective the date of the signature of the City
Manager on this document.
The Contractor, for and in consideration of the payment or payments herein specified
and agreed to by the City, hereby covenants and agrees to furnish and deliver all the
materials and to do and perform all the work and labor required in the construction of
the above - referenced project as bid by the Contractor, which bid and prices named,
together with the Contract Documents (as hereinafter defined) are made a part of this
Contract and accepted as such. It is distinctly understood and agreed that no claim for
additional work or materials, done or furnished by the Contractor and not specifically
herein provided for, will be allowed by the City, nor shall the Contractor do any work or
furnish any material not covered by this Contract, unless such work or materials is
ordered in writing by the City. In no event shall the City be liable for any materials
furnished or used, or for any work or labor done, unless the materials, work, or labor are
required by the Contract or on written order furnished by the City. Any such work or
materials which may be done or furnished by the Contractor without written order first
being given shall be at the Contractor's own risk, cost, and expense and the Contractor
hereby covenants and agrees to make no claim for compensation for work or materials
done or furnished without such written order.
Notwithstanding the foregoing, payment under this Contract shall not exceed Thirty One
Thousand Four Hundred Forty dollars ($31,440) for all base items, additional work, and
change orders.
The Contractor further covenants and agrees that all materials shall be furnished and
delivered and all work and labor shall be done and performed, in every respect, to the
satisfaction of the City, on or before: May 15, 2011. It is expressly understood and
City of Seward Construction Contract
Page 1 of 3
r
A.
agreed that in case of the failure on the part of the Contractor, for any reason, except
with the written consent of the City, to complete the furnishing and delivery of materials
and the doing and performance of the work before the aforesaid date, the City shall
have the right to deduct from any money due or which may become due the Contractor,
or if no money shall be due, the City shall have the right to recover three hundred
dollars ($300.00) per day for each calendar day elapsing between the time stipulated for
the completion and the actual date of completion in accordance with the temis hereof;
such deduction to be made, or sum to be recovered, not as a penalty but as Liquidated
damages. Provided, however, that upon receipt of written notice from the Contractor of
the existence of causes over which the Contractor has no control and which must delay
furnishing of materials or the completion of the work, the Contracting Officer may, at his
or her discretion, extend the period specified for the furnishing of materials or the
completion of the work, and in such case the Contractor shall become liable for
liquidated damages for delays commencing from the date on which the extended period
expires.
The bonds given by the Contractor in the sum of Thirty One Thousand Four Hundred
Forty dollars ($31,440) Payment Bond and Performance Bond, to secure the proper
compliance with the terms and provisions of this Contract, are submitted herewith and
made a part hereof.
The Contractor further covenants and agrees that the entire construction will be done
under the administration of and to the complete satisfaction of the City subject to the .
inspection at all times and approval by any regulatory agency of the Local, State, or
Federal Government of the United States of America, and in accordance with the laws
of the State of Alaska and the City of Seward.
For purposes of this Contract, Contracting Officer means Kirsten Vesel or Kelly Hartz or
any other person designated by the City Manager.
The Contractor is an independent contractor and not an employee or agent of the City.
Contract Documents shall have the meaning ascribed by the General Conditions of the
Construction Contract, and include but are not limited to this Contract, the General
Conditions of the Construction Contract, the Special Conditions, and the following listed
documents:
(1) EECBG Window and Door Replacement Bid closed on November 4, 2010 to include
specifications and contract documents; and
(2) Resolution 2010- L I I
IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to
its terms and conditions.
City of Seward Construction Contract
Page 2 of 3
CONTRACTOR
Plum Tree, Inc.
Company Name
• nature of Authorized Company Representative
John Sliwinski, President
Typed Name and Title
Date
CITY OF SEWARD
1t.GLr
Phillip Gates, City Manager
/0/7,ze)/0
Date
ATTST
Jeah M. Lewi, Ctv C,`City Clerk
p, 2
�j 4:
c b z _
3 T
y �
s R od `° °' ♦°
City of Seward Construction Contract
Page 3 of 3
5 3
Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -039
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING GRANT FUNDS FROM ALPAR AND THE
KENAI PENINSULA BOROUGH AND APPROPRIATING FUNDS FOR A
PARKS AND RECREATION LITTER PATROL
WHEREAS, Seward Parks and Recreation Department has been awarded a grant from
Alaskans for Litter Prevention and Recycling (ALPAR) in the amount of $2,500; and
WHEREAS, Seward Parks and Recreation Department expects to receive a grant from
the Kenai Peninsula Borough Solid Waste Division in the amount of $2,500; and
WHEREAS, litter pick up is desired among community members and visitors; and
WHEREAS beautification projects are consistent with City plans; and
WHEREAS, Council action is required to accept the grant and appropriate funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to accept the grants, as follows: 1) a
grant in the amount of $2,500 from ALPAR; and 2) a grant in the amount of $2,500 from the
Kenai Peninsula Borough to the ALPAR Project account no. 215- 2155- 4680 -0900.
Section 2. Funds totaling $5,000 are hereby appropriated to the ALPAR expenditure line
items as follows:
215- 2155 -5010 Salaries $3,800.00
215- 2155 -5080 Workers' Compensation 325.00
215- 2155 -5090 Social Security 600.00
215- 2155 -5440 Operating 275.00
TOTAL $5,000.00
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -039
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
23` day of May, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
JJ
Council Agenda Statement e less.
Meeting Date: June 13, 2011
From: Karin Sturdy, Parks & Recreation Director .q-- ''P.
t �s�
Through: Phillip Oates, City Manager
Agenda Item: ALPAR Litter Patrol Grant
BACKGROUND & JUSTIFICATION
Seward Parks and Recreation has again been awarded a grant from Alaskans for Litter
Prevention and Recycling ( "ALPAR "), in the amount of $2,500. This grant will fund a youth
litter patrol in Seward, and reimburse personnel expenses from the project. Youth workers shall
be paid minimum wage, $7.75 and the adult crew leader will be paid $13.30 per hour.
Applications for crew positions will remain open throughout the summer.
We have also made our request again to the Kenai Peninsula Borough - Solid Waste Division
asking a matching $2,500 for our litter patrol program, and /or other litter control or
beautification projects.
Last summer, the litter patrol consisted of adult leaders, help from a program supervisor from
SeaView Community Services and a part-time crew of up to six youth workers. Usually a
minimum three crew members worked four hours per day, five days per week from June through
August. The litter crews cleaned the downtown area, the beach, the harbor plaza, city parks and
streets, parking lots, playgrounds and the Highway out to the Chamber of Commerce building.
When time allowed, they cleaned residential areas. Youth crew members must be ages 14 to 17,
as defined in the ALPAR grant requirements.
On April 28, ALPAR awarded the City of Seward the "2010 Outstanding Youth Litter Patrol
Award. Sebastian Kratz from our 2010 crew accepted the award. The Parks & Recreation
Department supplies the bags, gloves and safety vests, litter sticks and various other tools or
supplies.
Council action is required to accept these grants, appropriate the funds, and to accept the litter
patrol budget. We plan to begin work June 1 and will finish as school begins in late August.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan x
( "Work with ALPAR..." p 18)
2. Strategic Plan x
( "Attractive,... Community" p 2)
3. Other: 1993 Parks & Rec Master Plan x
(Not listed specifically, but consistent with goals)
- Continued -
l 0
City of Seward
Resolution 2011 -
Page 2 / ALPAR Grant Award.
ALPAR Budget:
215- 2155 -5010 Salaries $3,800.00
215 -2155 -5080 Workers' Compensation 325.00
215- 2155 -5090 Social Security 600.00
215- 2155 -5449 Operating 275.00
TOTAL $5000.00
FISCAL NOTE:
The revenue sources for litter patrol project grants fully fund the expenses; $2,500 from ALPAR
plus $2,500 from the Kenai Peninsula orough Solid Waste Division.
Approved by Finance Department: �
to
RECOMMENDATION:
Seward City Council approve Resolution 2011- 051 accepting two ALPAR grants, as
follows: $2,500 from ALPAR and $2,500 from the KPB to the ALPAR Special Project
Revenue, Account Number 215- 2155- 4680 -0900 and appropriating $5,000 to ALPAR
Expenditures, Account Numbers 215- 2155 -5XXX, as listed above under "ALPAR Budget ".
EXECUTIVE DIRECTOR
Alaskans for Litter Mary Fisher
O EXECUTIVE COMMITTEE
• Prevention and Recycling Michael Blewett, Presidenr
l Keeping Alaska Beautiful Horne Regional Supervisor, Alaska
Fred Meyer
George Lowery, 1" Vice Preside,
Alaska Director
Totem Ocean Trailer ,Express
April 13, 201 1 Marion Davis, 2° Vice Presidenr
VP & General Manager, Alaska
Horizon Lines . Inc.
To: 2011 ALPAR Youth Litter Patrol Grant Recipients •Keith Sopp, Secretary
From: Mary Fisher / 274 -3266; alpar@gci.net Media Sales Manager
GCI
Jett Lowentels, Treasurer
RE: A. 2011 ALPAR grant funding (Grant Check Enclosed) (� Partner
B. Final report form enclosed; due date is September 30, 2010 Lewis & Lowenfels
Roger Briley, Past President
BOARD OF DIRECTORS
Happy spring and summer to you! Joy Journeay
Executive Director
Alaska Air Carriers Association
On behalf of ALPAR's board of directors, it is our pleasure to present Michael Beck
your community with this check for your 2011 ALPAR Youth Litter Patrol. Sr. Vice President
The News Group
Ken Carter
ALPAR is a non - profit organization funded by Alaskan businesses; these funds Production Director
are not provided through government programs. This grant is our way to assist Anchorage Daily News
Jimmy Doyle
your community with local clean up efforts. We also want to recognize our Vice President
Youth Litter Patrol sponsor, ConocoPhillips , who provides our safety vests Weaver Brothers, Inc.
and BP who provides the free, yellow litter bags.
Timbo
Store Manager Erickson
Wahnarl Slums, Inc.
These funds are to be used exclusively to pay youth patrollers and their Craig Gales
Senior Manager, Marketing
adult supervisors directly or have them earn the money for their group. It's a Alaska viaste
great idea to reward your patrol with prizes and a group celebration at the end ' Don Grasse
Vice President & General Manager
of the season; just remember that all prizes and supplies must be provided K & L Distributors, Inc.
through your local community. Tom Johnston
Slate of Alaska DOT & PF
Kim Koval
Included with your 2011 grant check is the YLP Final Report form. Please file Executive Director
promptly! Late or unfilled reports will affect your comm.unity's ability to. Green Star
receive funds in the future.
Brent Miller
Unit Sales Manager
Pepsi Beverage Company
If you are one of the many communities who files their final report on time, 'Bill Odom
p Executive Vice President
THANK YOU, we.appreciate it very mu.ch.! Remember to flag.your calendar Odom Corp.
that this year's final report is due by September 30, 2011. Glenn Peterson
District Manager
CARRS /Safeway.
Good luck with your clean up efforts this season! If l can help in any way, Brian Potvin
Central Alaska Manager
please phone me at (907) 644 -7968, or e -mail alpar@gei.net. Alaska Marine Lines
Ken Privratsky
e. est Regards, , Senior Vice President
Horizon Lines, Inc.
'Scott Smith
r/
General Manager
Anchorage Media Group
Mary Fish , Executive Director Past President
HONORARY
LIFETIME MEMBERS
Torn Cox
(907) 274 -3266 ' Mark Williams
P.U. Box 200393 5 3 FAX (907) 274 -8023 Audrey Lee
Anchorage, Alaska 99520 >",y printed or recycled paper E -mail: alpar,gagci.net Cherie Myers
Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -040
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $232,572.81 TO SUPPLEMENT A STATE
LEGISLATIVE GRANT TO DREDGE THE APPROACH AND BERTHING
BASINS OF THE ALASKA RAILROAD DOCK TO ACCOMMODATE
CRUISE SHIPS
WHEREAS, the City of Seward was awarded a FY 2010 Designated Legislative Grant in the
amount of $4,500,000 to dredge the cruise ship berthing and approach basins; and
WHEREAS the objective of this project is to improve safety and to better meet cruise ship
passenger needs in Seward; and
WHEREAS, dredging is necessary for the City and the Alaska Railroad Corporation to
accommodate the cruise ship industry; and
WHEREAS, Grant funds were used toward contractual services including dredging,
engineering, design, planning, permitting and project management; and
WHEREAS, the City received up to 10% of the grant proceeds to offset the City's costs of
the project; and
WHEREAS, remaining grant funds are being re- appropriated for a water tank replacement
project to also benefit cruise ship passengers; and
WHEREAS, the final billing for the dredging project totals $232,572.81 and must be paid in
order to close out the project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council hereby authorizes the payment of $232,572.81 from
Commercial Passenger Vessel funds fund #402 - 0000 - 3071 -0276 to be paid to the Alaska Railroad
for expenses related to the Cruise Ship Dredging project.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of
May, 2011.
Council Agenda Statement
Meeting Date: May 23, 2011 1 seise
To: Phillip Oates, City Manager u-
From: Kari Anderson, Harbormaster
Agenda Item: Dredging the approach and berthing basins of the Railroad Dock
BACKGROUND & JUSTIFICATION:
The City of Seward received a grant from the State of Alaska Department of Commerce, Community
and Economic Development Division of Community and Regional Affairs (Resolution 2009 -093) to
dredge the Alaska Railroad dock to accommodate cruise ships utilizing the pier to improve safety
and to better meet cruise ship passenger needs in our port. This project met the legislative guidelines
established for the proper use of cruise ship head tax proceeds. Ultimately, the funds were utilized to
dredge the approach and berthing basins to a depth of up to 45 feet. The City entered into a
Memorandum of Agreement (Resolution 2009 -092) with the Alaska Railroad in order to facilitate
the dredging of the approach and berthing basins.
The dredging project was completed by the contractor in November of 2010. Two invoices were
received by the City in April and May of 2011 to close out the project in an amount of $232,572.81.
Commercial Passenger Vessels received by the City of Seward will be utilized to pay these final
invoices. The remaining Department of Commerce, Community, and Economic Development
Division of Community and Regional Affairs FY 2010 designated legislative grant funds are
currently a part of the proposed State of Alaska capital budget, and are earmarked to be re-
appropriated to Seward' s water tank replacement project.
INTENT: Utilize Commercial Passenger Vessel funds to reimburse costs associated with the Cruise
Ship Basin and Approaches Dredging project.
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 or Other Plans or Policies:
Yes (List Below) No
FISCAL NOTE:
There is approximately $1.2 million in un- appropriated CPV funding which will be used to pay for
close -out of this dredging project. Remaining CPV funds are expected to be used for the security
float and adjacent upland close -out costs, unexpected costs associated with the USCG building
relocation project, ambulance services, excess US Army Corps breakwater close -out costs, bus
transportation pilot project, etc.
Approved by Finance Department: ik4.t0/
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: (A 0
Approve Resolution 2011- appropriating $232,572.81 from Commercial Passenger Vessel funds
to reimburse the Alaska Railroad for costs associated with the Cruise Ship Basin and Approaches
Dredging Project.
60
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f Ito
:, - P. . :
4
\\.....„..,...,
April 14, 2011 Grants and Project Administration
TEL 907.265.2214
City of Seward FAX 907.265.2638
P.O. Box 167
Seward, Alaska 99664 -0167
Attn: Accounts Payable
Re: Memorandum of Agreement
Dredging the ARRC Seward Passenger Dock and Approach
Subj: Invoice 2011 - 006
Please reimburse Alaska Railroad Corporation (ARRC) in the amount of $219,583.29
for expenses incurred in March, 2011.
Item Description Actual Expenses
1. Labor and Benefits 361.17
2. Vendor Payments 209,800.00
3. ARRC Direct Charges 1.38
4. Less Indirects (35.00)
5. 4.5% Billable Overhead 9,455.74
TOTAL $219,583.29
Documentation includes this summary, a project download for project number 19991,
detailed, confidential labor reports and copies of paid invoices.
Should you have any questions regarding this invoice please contact Sandy Holmes,
(907) 265 -2230 or Jan Henning, Manager, Reimbursable Services at (907) 265 -2214,
Sincerely, J
an Henning APPROVED FOR PAYMENT
Manager, Reimbursable Services W1 18 i! CODE:
Attachments DATE:
. z'tATURE
■•••
cc: Bob Hanson, Project Manager
Sandy Holmes, Project Accountant
327 W. Ship Creek Avenue I MAILING ADDRESS 1 reL 907.265.2300 FAX 907.265.2416
Anchorage, Alaska 99501 P. O. Box 107500 Anchorage, Alaska, 995 AlaskaRailroad.cam
• 6 I.
a
r ��Lnon
FST.1914 ...
Grants and Project Administration
May 2, 2011 TEL 907.265.2214
FAX 907.265.2638
City of Seward
P.O. Box 167
Seward, Alaska 99664 -0167
Attn: Accounts Payable
Re: Memorandum of Agreement
Dredging the ARRC Seward Passenger Dock and Approach
Subj: Final Invoice 2011 — 010
Please reimburse Alaska Railroad Corporation (ARRC) in the amount of $12,989.52
for expenses incurred in April, 2011.
Item Description Actual Expenses
1. Labor and Benefits 1,167.23
2. Vendor Payments 11 100.00
3. ARRC Direct Charges 162.93
4. Less Indirects 0.00
5. 4.5% Billable Overhead 559.36
TOTAL $12,989.52
Documentation includes this summary, a project download for project number 19991,
detailed, confidential labor reports and copies of paid invoices.
Should you have any questions regarding this invoice please contact Sandy Holmes,
(907) 265 -2230 or Jan Henning, Manager, Reimbursable Services at (907) 265 -2214.
Sincerely,
i riali-' an Henning v
Manager, Reimbursable Services
Attachments
cc: Bob Hanson, Project Manager
Sandy Holmes, Project Accountant
3 W. Ship Creek Avenue 1 MAILING ADDRESS I TEL 907.265.2300 FAX 907.265.24i6
Anchorage, Alaska 99501 i P.O. Box io75oo Anchorage, Alaska, 99510.75 AlaskaRailroad.com
City of Seward, Alaska City Council Minutes
April 18, 2011 Volume 38, Page
CALL TO ORDER
The April 18, 2011 special meeting of the Seward City Council was called to order at 7:30
p.m. by Mayor Willard E. Dunham.
OPENING CEREMONY
Officer Rouleau led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Willard E. Dunham, presiding and Jean Bardarson
Marianna Keil Vanta Shafer
Bob Valdatta Ristine Casagranda
comprising a quorum of the Council; and
Phillip Oates, City Manager
Johanna Kinney, City Clerk
ABSENT — Tom Smith
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING - None
APPROVAL OF AGENDA
Motion (Bardarson /Shafer) Approve the Agenda
Motion Passed Unanimous
NEW BUSINESS
Resolution 2011 -026 Authorizing The City Manager To Enter Into A Contract With Brice Inc.
To Produce 47,500 Cubic Yards of Rip Rap In The City Quarry At Fourth Of July Creek, To
Waive The Royalty Of $5.00 Per Ton In Exchange For $22,500 Of The 47,500 Cubic Yards
Being Left In The Quarry For The City In Class IV, Class III, Class II Segregated Stockpiles,
And To Improve The City Rock Scales To State Of Alaska Certified Standards.
Motion (Bardarson /Shafer) Approve Resolution 2011 -026
City Manager Phillip Oates stated many companies had come to the city to buy rock in the
past, and normally the city declined those offers. What was different was this was giving value in
return, value in the rock produced by the city, for the scales to be fixed, and to elevate the floor of the
63
mask
City of Seward, Alaska City Council Minutes
April 18, 2011 Volume 38, Page
rock pit. This was necessary to reduce flooding that occurred in the area. Brice Inc. was originally
using the borough's quarry, and was looking for other areas. The estimated value of the Class IV
rock was $250,000 and the estimated value of the Class II, III, and IV rock that would be organized
in classified stockpiles was $350,000.
Public Works Director W.C. Casey stated Brice Inc. were good people to work with and he
felt this was a good value. What the city was getting was the best deal he had seen in the quarry.
Oates recommended approval.
Valdatta said the quarry needed to be surveyed. Shafer said she couldn't recall when council
had made a policy decision to not sell rock. Casey said it had been a case by case basis, as he
recalled. Shafer thought the city should set a policy for this. Dunham said there had been pressure to
sell the quarry, and it had always been the wishes of the council in the past to not sell. Casey
believed this contract would bring the quarry up to much better condition.
Bardarson inquired about the pricing of the rock per each classification and how the city
would know how much of each classification they would get. Casey said he had some good
estimates, but there was truly no way to determine until they started work. He estimated 1000 cubic
yards of class four, which was worth approximately $60 /ton; 6,000 cubic yards of class three,
estimated at $30 -$35 /ton; and 15,500 of class two, worth $15 -$20 /ton. He felt his numbers were
conservative; he erred on the side of caution with his estimations.
Casagranda wanted to know the location of the quarry, and what would the Left over rock do for
Seward — Oates said the city could save or sell the rock, but would likely save for flooding
mitigation. Oates said the work Brice was going to put into the quarry was a high cost savings if the
city were to provide the work. Oates stated the advantages were to both parties.
Bardrason asked for clarification on the figures presented to them, Casey stated they should
be getting 22,500 cubic yards of class 2, 3, and 4 and 50,000 cubic yards of class 1 and 2. Brice
would be taking just class 4 material. Casey clarified the attorney has reviewed this and drafted the
contract before the council.
Dunham was still concerned with Bardarson's question. Walton Crowell of Brice
Construction stated their company would take 25,000 cubic yards of class 4 rock, the city would get
22,500 cubic yards of class 2, 3, and 4 rock, and 50,000 cubic yards would be left to fill the pit floor
with, and there should be approximately 50,000 cubic yards left in the quarry to use as they see fit.
Motion to Amend (Bardarson/Keil) Amend Resolution 2011 -026, to remove
Roman Numeral "I" in the second whereas
in the rock removal agreement
Casagranda said she felt uncomfortable because there was no guarantee. Oates said there was
some uncertainty of how much class each portion would be, but the total amount produced was
guaranteed.
64
City of Seward, Alaska City Council Minutes
April 18, 2011 Volume 38, Page
Dunham said he felt this was a better agreement than most the city had received in the past.
The maintenance to the scales and upkeep was a great opportunity.
Casagranda inquired how the quarry was such a mess in the first place — Dunham and Shafer
said it was due to poor oversight over the years.
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
COUNCILS' COMMENTS
Shafer said they should have a policy for clear direction about rock purchases.
Casagranda felt this was a huge decision to make and wished she had more time to review
these documents.
Dunham said they should go on a tour of the rock quarry as this had been a sore subject
for many years. He agreed with Casagranda.
Valdatta said there was never a rock selling policy and said we had given up a lot of
potential sales because of it.
Dunham reminded the public and council about donating to Japan Relief Efforts.
CITIZENS' COMMENTS
Walton Crowell with Brice Construction thanked council for coming together for this
subject. He would love to have them come out and tour the quarry, but asked to just let him know
ahead of time and he would gladly accommodate them. If they had any questions, please let him
know. It was hard to determine what kind of rock would be found and perceived, and it was all
based on projections.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None
ADJOURNMENT
The meeting was adjourned at 8:20 p.m.
Johanna Kinney, CMC Willard E. Dunham
City Clerk Mayor
(City Seal)
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City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
CALL TO ORDER
The April 25, 2011 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Willard E. Dunham.
OPENING CEREMONY
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
Tom Smith
comprising a quorum of the Council; and
Phillip Oates, City Manager
Johanna Kinney, City Clerk
Brenda Ballou, Deputy City Clerk
Cheryl Brooking, City Attorney
ABSENT — None
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Chellie Skoog stated that $312,511 had been donated to date towards the funding toward of
Library Museum Project.
Jim Herbert referenced the oil spill response drill last week that resulted in the fleet earning
more than $250,000 for the community.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil/Shafer) Approval of Agenda and Consent Agenda
Resolution 2011 -027, Resolution 2011 -030, Resolution 2011 -032 and Resolution 2011 -033 were
removed from the Consent Agenda.
Item #4 was added to Other New Business to schedule a work session for a Redistricting discussion.
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City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
The April 11, 2011 Regular City Council Meeting Minutes Were Approved.
Resolution 2011 -028, Endorsing The Alaska Clean Harbor Pledge And Expressing Support
For Actions That Result In A Clean Harbor Certification.
Resolution 2011 -029, Accepting A National Endowment For The Humanities (NEH) Challenge
Grant Ch- 50802, A 3:1 Matching Grant In The Amount Of $500,000 For The Construction Of
The Library Museum And Appropriating Funds.
Resolution 2011 -031, Setting The Mill Rate For Tax Year 2011, Unchanged At 3:12 Mills.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
Super Saturday Clean-Up Day was Saturday, April 30, 2011.
April was National Library Month.
The CROP Hunger Walk Day was May 1, 2011.
City Manager's Report, City Manager Phillip Oates invited Chief Clemons to address the
surveillance camera issue. Chief Clemons stated that the camera of Fourth Avenue would be pointed
north, in the opposite direction of the downtown businesses, and its position would be locked down.
Business owners were not notified because the camera was pointed in the opposite direction, and
there are currently no notices posted because the system was not currently operating. Council was not
notified where the cameras were located because the Department of Homeland Security deemed the
list of critical infrastructure was confidential and specified the only people who can have access to
the list were the Chief of Police, the Fire Chief, the City Manager and the Mayor. Clemons further
stated that the police department could not actually see the fire department from their offices. Two
council members had not reviewed the camera systems because they were not yet functional.
Keil asked if the Homeland Security had access to the cameras. Clemons said they would
have to actually be present in Seward to see the cameras. Valdatta said he thought the original
positioning was important to maintain for safety at the bank and businesses.
Mayor Dunham asked what the police patrols were doing giving tickets outside city limits.
Chief Clemons said by Alaska state law any policy officer can stop and write a ticket anywhere they
are in the state.
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April 25, 2011 Volume 38, Page
Oates responded to the Coastal Villages Region Fund inquiries from the citizens stating they
had not been involved in the process. He stated there had been multiple public vetting opportunities
and that Phase 1 was the only focus for the city at the moment. Phases 2 & 3 were artist concepts
only and they may be located elsewhere when it actually happened.
The harbor staff teleconferenced into two meetings this past month with the Public Advisory
Committee and the Exxon Valdez Oil Spill Trustee Council to support the City's grant request for
establishing a vessel wash -down pad at the Seward Marine Industrial Center. Both groups
unanimously voted to fully fund the project in an amount of $739,100.
City administration met with officials from BP regarding an oil spill response drill to be held
in Prince William Sound in late September. An overview of the Regional Stakeholder's Committee
was discussed, and the new community liaison was introduced.
GCI submitted calculations for adding their fiber optic line to city poles. A meeting between
GCI and the City took place to verify the accuracy of the data and discuss the parameters of an
agreement. Also, Chugach requested a 1.9% demand increase from the City of Seward for the month
of May.
Councilmember Valdatta asked who was paying for the building permit for the US Coast
Guard building. Harbormaster Anderson responded that the City was not charging them.
Councilmember Smith suggested that Council hold a public awareness meeting regarding the
Coastal Villages Region Fund to clarify misinformation and the Council agreed. Mayor Dunham
added that Phases 2 & 3 were 15 to 20 years out.
City Attorney's Report, Cheryl Brooking stated her office had been working on
employment matters, contracts, funding proposals for the Sea Life Center and the Library Museum
Project. Regarding litigation, there were currently two cases she was involved with: Tract B takings
litigation for constructing the levee road for which a special master had been appointed to estimate
the value of the property; and, the Resurrection Bay Conservation Alliance and Alaska Community
Action Against Toxics for which arguments were scheduled for May 3, 2011, the issue was if city
was obligated to pay their legal costs which was approximately $130,000.
Mayoral Report, Mayor Willard E. Dunham stated the City made the front page of
Fisherman's News for the Coastal Villages Regional Fund. He expanded on the current state of the
fishing fleet, as reported in the Fisherman's News newspaper, and the federal response that may be
imminent to respond.
Vice Mayor Bardarson stated that she and the City Manager would be travelling on May 17
through May 20, 2011 to visit the Coastal Villages Regional Fund people in Seattle, see their
facilities and determine their needs.
Mayor Dunham added that it was imperative that the city continue to push for an extension
on the railroad dock.
City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
Other Reports, Announcements and Presentations
Council discussed funding options for the Library Museum Project. City Manager Oates gave
an overview of the work session and the various alternatives available, including: an alcohol
inventory property or sales tax, an alcohol/tobacco sales tax, a seasonal sales tax, a flat sales tax
increase, an increase in the sales tax cap, an increase in real property tax rate, and an increase in the
bed tax.
Councilmember Shafer requested they pursue a 10% alcohol/tobacco tax with a sunset clause.
Smith would like to see resolutions for each option with a reduced amount for the bond. Keil
reminded council that the property tax resolution had been defeated. Valdatta suggested they
approach the non - profits and non - property tax paying customers.
By unanimous consent, the rules were suspended for an update on the project. Kent
Crandall, project manager, stated they were two weeks away from having a completed design.
PUBLIC HEARINGS
Ordinance 2011 -002, Increasing The City Sales Tax From Four Percent To Four- And -One-
Half Percent, Beginning January 1, 2012. Notice of the public hearing being posted and published
as required by law was noted and the public hearing was opened. No one appeared to address the
Council and the public hearing was closed.
Motion (Bardarson/Shafer) Enact Ordinance 2011 -002
Motion (Shafer/Keil) Postpone Ordinance 2011 -002 to the
May 23, 2011 meeting.
Motion to Postpone Passed Yes: Bardarson, Valdatta, Keil, Smith,
Shafer, Casagranda
No: Dunham
UNFINISHED BUSINESS
Ordinance 2010 -009, Amending Seward City Code Section 5.35.055 To Create A Revenue
Source For Repayment Of Up To A 25 Year /$3.73m General Obligation Bond For
Construction Of The Seward 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 (Shafer /Smith) Postpone Ordinance 2010 -009
After further discussion, Councilmember Shafer withdrew her motion to postpone so Council
could amend the Ordinance. Councilmember Smith agreed to the withdrawal.
City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
Motion (Bardarson/Keil) Amend Ordinance 2010 -009 by
changing the amount to read "up to"
25 year /$3.73m throughout the
Ordinance.
Motion to Amend Passed Yes: Dunham, Bardarson, Valdatta,
Smith, Keil, Shafer
No: Casagranda
Motion (Shafer /Smith) Postpone Ordinance 2010 -009 to the
May 23, 2011 meeting.
Motion to Postpone Passed Yes: Bardarson, Valdatta, Keil, Smith,
Shafer, Casagranda
No: Dunham
Resolution 2011 -019, Approving The Purchase Of A Backhoe For An Amount Not To Exceed
$90,000.
Motion (Shafer/Keil) Approve Resolution 2011 -019
Electric Manager, John Foutz, provided Council with several quotes on new and used
equipment from John Deere, Case and Caterpillar.
Motion (Shafer/Keil) Amend Resolution 2011 -019 by
changing the amount from $200,000 to
$90,000.
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Councilmember Smith left the meeting at 8:40 p.m.
NEW BUSINESS
Resolution 2011 -027, Authorizing Additional Funds In The Amount Of $20,000 For City
Council Travel Related To The New Arctic Research Vessel, Coastal Villages Research Fund,
And Other Similar Economic Initiatives, And Appropriating Funds.
Motion (Bardarson/Shafer) Approve Resolution 2011 -027
Motion (Keil/Valdatta) Amend Resolution 2011 -027 by changing
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City Council Minutes
April 25, 2011 Volume 38, Page
the amount from $20,000 to $10,000.
Motion to Amend Passed Unanimous
Main Motion Passed Unanimous
Resolution 2011 -030, Approving A Contract For Animal Control Services With Shelli
McDowell In The Amount Of $57,201.96.
Motion (Bardarson/Keil) Approve Resolution 2011 -030
Motion Passed Unanimous
Resolution 2011 -032, Authorizing Signatures For All City Bank Accounts And Rescinding All
Previous Resolutions In Conflict Herewith.
Motion (Bardarson/Keil) Approve Resolution 2011 -032
Motion Passed Unanimous
Resolution 2011 -033, Authorizing Expenditures In An Amount Not To Exceed $65,000 As
Start -Up Costs For The Seward Community Health Center, And Appropriating Funds.
Motion (Keil/Bardarson) Approve Resolution 2011 -033
Keil & Bardarson asked for a ruling on a potential conflict of interest, as they both
served on the Community Health Center's Board of Directors, but Mayor Dunham ruled that
a conflict did not exist.
Motion Passed Unanimous
OTHER NEW BUSINESS
Council scheduled a work session to discuss amending building codes on July 11, 2011 at 5:45 p.m.
in Council Chambers.
Council scheduled work sessions for Enterprise Fund Rate Reviews in Council Chambers as follows:
Parking & Electric — August 1, 2011 at 7:00 p.m.
Harbor — June 6, 2011 at 7:00 p.m.
Water & Sewer — July 18, 2011 at 7:00
Council scheduled a work session to review audit results with John Bost or Michelle Drew on June
27, 2011 at 5:00 in Council Chambers.
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City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
The work session with the Alaska SeaLife Center for April 26, 2011 was cancelled and would be
rescheduled.
INFORMATIONAL ITEMS AND REPORTS (No action required)
February Providence Report.
February City Financial Report.
Letter to Kenai Mayor Pat Porter RE: All America City Nomination
Letters to House Finance Committee RE: CSSB 84 (FIN)
COUNCILS' COMMENTS
Councilmember Shafer expressed her condolences to the AVTEC student's family who was
killed yesterday in Anchorage.
Councilmember Casagranda thanked Shelli McDowell for doing a good job at reducing
expenses at the dog pound, and she was looking forward to being more informed about council
travel. She also thanked the Library Museum Project Committee.
Councilmember Keil offered tidings to City Manager Oates' mother for turning 89, and said
great job to the harbor for obtaining the wash down pad.
Councilmember Valdatta encouraged everyone to vote for Seward for the fishing city of the
United States.
Vice Mayor Bardarson asked people to please vote for Seward as well, and also expressed her
condolences to the Brent Whitmore family.
Mayor Dunham offered his condolences to the families of Gene Bradley, Brent Whitmore,
and Bob Miller. He also announced that the Little League baseball season would kick off on Sunday,
and reported that he had attended the Arts Council meeting and there was $600,000 available in
grants for artists.
CITIZENS' COMMENTS
Carol Griswold felt the public had been excluded from the Coastal Villages Regional Fund
discussions. She urged Council to schedule a public hearing and to encourage PACAB to vet this
project.
Jim Herbert urged council to communicate with each other in order to be in a position to act
on the Library Museum Project.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
City of Seward, Alaska City Council Minutes
April 25, 2011 Volume 38, Page
Councilmember Keil responded that the Coastal Villages Regional Fund discussion earlier
this evening stressed that the focus and discussion to date had only been on Phase 1.
Mayor Dunham stated that the Council began the endeavor to raise public awareness in
October 2010, that the Coastal Villages Regional Fund board visited Seward in late 2010, and that
the drawings that had been circulated were merely projections and concepts only.
ADJOURNMENT
The meeting was adjourned at 10:08
Johanna Kinney, CMC Willard E. Dunham
City Clerk Mayor
(City Seal)
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City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
CALL TO ORDER
The May 9, 2011 regular meeting of the Seward City Council was called to order at 7:00 p.m.
by Mayor Willard E. Dunham.
OPENING CEREMONY
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
Tom Smith
comprising a quorum of the Council; and
Phillip Oates, City Manager
Brenda Ballou, Acting City Clerk
ABSENT — None
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Patricia Heim armounced that there would be a Fireside Chat held at the K. M. Rae Building
regarding early education in Seward during the 1950's and 1960's on Tuesday, May 10, 2011 at 7:00
p.m.
Todd Brewer expressed concerns about surveillance cameras that were installed throughout
town because he didn't feel the public had been given time to consider their opinions before the
cameras were ordered. He felt that security was a double -edged sword: it protected borders, but it
also controlled populations. He added that the money necessary to maintain the equipment would be
better used for the overtaxed public.
Carl Norman stated that the new proposed taxes for the Library Museum Project were
exorbitant. He went on to illustrate his point by stating that a 1% increase over a 4% existing tax
actually represented a 25% increase. He said Seward could not afford the Library Museum Project.
Devin Putney said he attended the work session for the surveillance cameras in September
2010 and remembered that the discussion involved having clearly marked signs where the cameras
were placed, that Council would review the locations and view, and that no cameras would be placed
on Fourth Avenue. He believed the cameras should be removed.
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City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
Mary Tougas reported on the Library Museum Project's fundraising dinner held last week at
the Inn at Tern Lake. She said there were only five seats left vacant, that it was a great success, and
that it yielded over $16,000 for the project. She thanked the sponsors, merchants and attendees. She
went on to announce and show samples of the black granite commemorative tiles that were ready for
sale as another fundraising endeavor for the project. Tiles would be available in the following sizes:
6" x 6 ", 6" x 12" and 12" x 12 ". The tiles would be placed on the walls of the completed building.
Sandie Roach' requested that Ordinance 2011 -003 be pulled from the Consent Agenda so
that she could hear the Council's discussion.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (KeiUShafer) Approval of Agenda and Consent Agenda
Councilmember Shafer requested to remove the Approval of the April 18, 2011 City Council
Special Meeting Minutes and the April 25, 2011 City Council Regular Meeting Minutes from the
Consent Agenda and the Regular Agenda.
Councilmember Casagranda requested to remove Ordinance 2011 -003 from the Consent
Agenda.
Vice Mayor Bardarson requested to add Item #4 to Other New Business Items to schedule a
work session for an update on GCI projects.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
Resolution 2011 -034, Awarding A Contract For Three Years To Merritt Enterprises For
Custodial Services At The Harbormaster's Building, And Public Restrooms Behind The
National Park Service Building, The Northeast Launch Ramp And The Upland Area For
$31,800 Per Year.
Resolution 2011 -035, Appropriating $39,834 For Year Two Of The Seward Shuttle Bus
Contract With First Student.
Cancel the 5/23/2011 work session with Friends of the Jesse Lee Home, and schedule a work session
to discuss Alaska SeaLife Center Energy Efficiency Funding for May 23, 2011 at 5:30 p.m. in City
Council Chambers.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
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City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
A proclamation was read for Keefer Brown. Keefer accepted his recognition award and
received a standing ovation.
Special Olympics Torch Run/Terry Pollard Exit Glacier Race. Chief Tom Clemons
encouraged everyone to support Special Olympics.
Terry's Tires Bike Rodeo is May 14. Melanie Hauze thanked Terry's Tires for their
sponsorship.
Welcome to the Pacific Ocean Division of the US. Army Corp of Engineers.
Peace Officers' Memorial Day May 15. Chief Tom Clemons accepted this proclamation
and recalled the many officers who have been taken down in the line of duty.
Borough Assembly Report, Sue McClure stated the last meeting was exciting because of
the proposal to raise the sales tax cap from $500 to $2,500. The resolution was unanimously
defeated. Another proposed item was to decrease the number of Borough Commissioners from 13 to
11, but after discussion it was decided to postpone that discussion until September. She announced
that May was motorcycle awareness month and urged people to be aware. The proposed budget for
the Borough was available and included a 2 % increase for senior citizens. She announced that there
would be two public hearings on the budget, scheduled for May 17, 2011 and June 7, 2011. Borough
Assembly Members were currently offered health insurance, the same as Borough employees, but it
was proposed that it should be eliminated, or at least require those who take it to pay 30 %. This issue
would also be discussed at the June 7, 2011 meeting. Another item on the May 17, 2011 agenda
would be anadromous streams (fish- bearing) and adding more streams to that protection category.
She reminded everyone that the Borough website contained minutes from past meetings as well as
information about upcoming issues. She stated that the Borough had been malapportioned since the
2010 census and the Borough Assembly had created a committee to address redistricting. There were
currently nine districts, and this item would either appear on the October ballot for voter approval or
else the state would mandate a result.
Councilmember Valdatta praised the hospital in Soldotna, to which McClure elaborated
that the Central Peninsula Hospital had expanded its services and had recently produced a quarterly
report based on patient feedback in which they were named top in the state.
Mayor Dunham stated that he and Vice Mayor Bardarson attended the school board meeting
last week and was dismayed when the superintendent spoke about having difficulty working with
AVTEC on a cooperative exchange. AVTEC reported that the Borough funds the University of
Alaska with tuition monies, but students attending AVTEC in Seward were required to pay their own
costs. McClure responded that she had a meeting set up for the following week to address this.
Mayor Dunham received Unanimous Consent from the Council that it was a formal request
for McClure to look into this.
City Manager's Report, City Manager Phillip Oates addressed the elimination of federal
earmark funding and would be meeting in Kenai the following week to support a $50,000,000 fund.
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May 09, 2011 City Council Minutes
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He reported that he and Vice Mayor Bardarson would travel to Seattle the following week to meet
with vendors relating to Coastal Villages. As well, Alaska Railroad President, Gary Haynes, would
be visiting Seward and making a presentation about his vision for the future at 11:00 a.m. in Council
Chambers on Tuesday, May 17, 2011. City administration joined City Attorney Cheryl Brooking in
court on May 3, 2011 for oral arguments to the 9th Circuit Court of Appeals. Resurrection Bay
Conservation Alliance continued to appeal the question of attorney fees. In response to a letter
received from Seward Ship's DryDock on May 2, 2011 regarding the splash zone coating
requirement on the sheet piling, Oates stated he would be bringing in an expert to analyze the work
being done and the condition of the sheet piling, and would report back to the council the findings.
The Harbor Opening Day weekend would be May 20 -22, 2011, and the Chamber would be hosting a
Military Appreciation bar -b -que on May 21, 2011.
Staff had been researching replacement options for the 250- tonMarine TraveLift, which was
21 years old this year; one vendor quoted $1.75 million for a delivered and assembled 330 -ton
TraveLift; motor pool contributions had not been made to replace this lift, however, staff was
researching grant opportunities and would discuss the privatization of this operation with PACAB in
June 2011. GCI submitted calculations for adding fiber optic line to city poles, city personnel met
with GCI and they would be submitting updated calculations based on criteria requested. John Foutz,
Electric Manager, attended meetings Juneau pertaining to ARCTEC Capital Projects and gave a
presentation to the House Energy & Resource Committee.
Mayoral Report, Mayor Willard E. Dunham stated he was following movement by the
legislature on Seward issues, and that he had phone conferences with the Alaska Municipal League,
our lobbyists, Coastal Villages funding, AVTEC program funding and Alaska SeaLife Center
Foundation funding credits (HB84). He had lobbied for the AVTEC nursing program to counter
UAF's opposition to it; he received a letter from Alaska Health Consortium that they would meet
with the council to discuss.
He traveled with Vice Mayor Bardarson to Marinette, Wisconsin to attend the keel - laying of
the Sikuliaq research vessel. Richard McCreary, CEO of Marinette Marine Corp., builders of the
vessel, presented Dunham with a commemorative plaque to bring home, which he donated to the
Library Museum. David Conover, Director, Division of Ocean Sciences of the National Science
Foundation, complimented Seward on its work to get the ship built and said he looked forward to
visiting Seward in the near future.' The Mayor and Vice Mayor then traveled to Seattle where they
met with the shipping companies; it was clear that Seward needed to work very closely with the
Alaska Railroad to complete a dock extension. TOTE had visited Seward in the past few months and
was planning on returning. Dunham and Bardarson visited Northland Services and were pleased to
hear that they would be returning to Seward in the fall. Northland was very interested in the Coastal
Villages project as they served most of the villages who were members of the corporation. They met
with Sampson Tug & Barge to thank them for their scheduled service to Seward and discuss port
improvements. The meetings with Crowley were very satisfying. Dunham and Bardarson learned that
Crowley would be expanding their presence in Seward. Crowley had made another large investment
in the AVTEC Marine Training facility. Rockwell Smith, Senior Vice President, and General
Manager, and Scott Haggarth, General Manager of Ship Assist and Escort Services, were especially
talkative about Seward and its position for working in the northern areas. The Mayor stated that he
was honored to represent Seward at the Bering Sea Fisheries Conference in Seattle.
City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
A group of 1 graders visited City Hall from Seward Elementary; they had lots of questions
and were intrigued with Chief Clemons and his police officers. He thanked GCI for their
$10,000,000 investment in Seward for fiber optic cable.
Vice Mayor Bardarson would be meeting with Japanese industry heads to discuss the
possibility of bringing marathoners to Alaska while she was at the International Trade Pow -Wow and
sales conference in San Francisco. There was an estimated five million marathoners in Japan who
travel all over the world to race, and there would be 25 or so Japanese marathoners scheduled to visit
Seward in August or September.
Other Reports, Announcements and Presentations
Jesse Lee Home Update given by Tom Swann. Swann stated that the funding was up to
80% of the $15,000,000 necessary to complete the project. The school would be a Charter school and
would allow Seward teachers to work there as well as at the regular schools in town, the funding for
which would come through the Borough. Students who attended would be from Seward, as well as
from around the state. The Mayor requested that the assessment/structural report be completed by the
next work session and Swann agreed.
PUBLIC HEARINGS — None.
UNFINISHED BUSINESS — None.
NEW BUSINESS
Ordinance for Introduction
Ordinance 2011 =003, Amending Seward City Code Sections 5.35.010 And 5.35.035 To Allow
For An Increase In Sales Tax For Alcohol Beverages And Tobacco Products.
Motion (Keil/Shafer) Introduce Ordinance 2011 -003
The Council decided to delay discussion related to this Ordinance until the May 23, 2011
meeting.
Motion Passed Unanimous
Resolution 2011 -036, Amending The Surveillance Camera Policy. (Clerk's Note: this resolution
was still being reviewed by the attorney for the May 9, 2011 meeting at the time of packet
preparation.)
Motion (Bardarson/Keil) Approve Resolution 2011 -036
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May 09, 2011 City Council Minutes
Volume 38, Page
Mayor Dunham stated that he had taken a casual poll of business owners on Fourth Avenue
and found no one to be in opposition to the surveillance cameras being in their current positions. He
said the business owners felt protected and welcomed the additional security their cameras gave their
businesses. He added that many business owners appeared `surprised' that the issue seemed to be
`getting personal.' He expressed that there were potential monetary concerns over moving or
removing the cameras, and that the city attorney was investigating whether there was cause for
concern over criminal intent by the city.
Councilmember Shafer responded that this issue was not about securing businesses; she felt
that business owners had their own obligation to protect their own businesses. Rather, she stated that
she opposed the Federal government dictating where they believed the cameras ought to be placed.
She questioned the wisdom of following the governmental directive like sheep. Shafer stated that the
cameras were an invasion of privacy; she also stated that there still seemed to be some confusion
about whether the cameras were actually working or not
Councilmember Keil felt that having a camera on the inside of the fire department building
would be just as effective as having it on the outside.
Councilmember Smith suggested that Council not act on this resolution until they had a
statement from the city attorney. He further suggested that council review the current list of locations
and determine their own needs for where they thought the cameras ought to be placed.
Vice Mayor Bardarson agreed that council should wait for the city attorney' s opinion, and
suggested they postpone the issue to the June 13, 2011 meeting.
Motion (Bardarson/Shafer) Postpone Resolution 2011 -036 to June 13,
2011
Motion to Postpone Passed Unanimous
OTHER NEW BUSINESS
Schedule a work session to discuss redistricting. Council decided to write a position letter to the
Redistricting Board rather than conduct a work session, as they were all in agreement on the main
points they wanted to express.
Schedule a work session for a GCI update. City Manager Oates would be scheduling this work
session for early June, exact date to be determined.
INFORMATIONAL ITEMS AND REPORTS (No action required) — None.
COUNCILS' COMMENTS
City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
Councilmember Casagranda requested that all council members and audience turn off their
cell phones completely during council meetings to mitigate interference of the telecasting. She also
raised a discussion about the Coastal Villages Region Fund; the city was waiting for a $400,000
appropriation which was expected on the capital budget for July 1, 2011, then the council could
schedule public informational meetings about the project.
Councilmember Shafer congratulated three nurses from Providence Hospital who were
celebrating their 20 reunion.
Councilmember Keil gave 'atta boys' to the road crew for doing a good job clearing up the
winter gravel and patching pot holes around town.
Vice Mayor Bardarson thanked everyone for doing a good job with the Super Saturday
Clean-Up, and remarked that the Performing Arts Center talent show was great.
Mayor Dunham gave kudos to the police department for participating in the Super Saturday
Clean-Up; he congratulated the Rotary Club for their preparation for Seward's 100 year celebration;
he mentioned that AVTEC chefs who recently graduated had won a bronze medal at a national
competition. He also expressed his condolences to the family of Ron Miller.
CITIZENS' COMMENTS
Tom Tougas said that Seward needed a community plan to represent its collective values and
goals, and that the community should drive the city's budget and how it's used rather than the budget
driving the community's values. He suggested that council use the `down time' between biennial
budgets to work on gathering the community's directives.
Keith Campbell echoed Tougas' comments and challenged the council to rise to the
occasion.
Matt Hershock asked if there was a contractual obligation to the camera system that would
prevent the city from not having a camera on Fourth Avenue.
Mary Tougas said that Tuesday, May 10, 2011 there would be a meeting held in the library
basement to planning the groundbreaking ceremonies for the new Library Museum Project.
Joanie Merritt thanked Tougas and Campbell for their pro - active thoughts.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
Councilmember Shafer said she believed the surveillance camera grant was closed in
December 2010 and that the cameras could now be moved or removed without penalty.
83
City of Seward, Alaska City Council Minutes
May 09, 2011 Volume 38, Page
Councilmember Keil asked council to keep in mind during the upcoming budget season the
perspective of pursuing projects tied to grants only if council agreed they would otherwise pursue
them through the general fund. Councilmember Casagranda agreed.
ADJOURNMENT
The meeting was adjourned at 9:17 p.m.
Brenda Ballou Willard E. Dunham
Acting City Clerk Mayor
(City Seal)
01
MEMO
Meeting Date: May 23, 2010 c Ab
et
SFk
1 a
From: Johanna Kinney, City Clerk � ;,
Agenda Item: Appointment to the Port & mmerce Advisory
Board
BACKGROUND & JUSTIFICATION:
There is currently one seat open on the Port & Commerce Advisory Board for council appointment.
Last month, Board Member Rob Buck resigned because of his recent hire with the City of Seward
Parks and Recreation Department.
Two citizens have submitted their applications: Angela Buck and Steve Fink. Their applications are
included in the packet for your review.
Council will need to appoint one person from the two applicants that will serve a term that expires in
July 2012. The mayor and council will have ballots with both names on them. Each member will
vote for one applicant.
Please pass the voted ballots to the city clerk and they will be read aloud and tallied.
In accordance with Seward City Code 2.10.40 and the Seward Charter 3.5, the winning applicant
must receive at least four of the votes to be appointed. SCC 2.30.310 states the council appoints
by ballot voting.
RECOMMENDATION:
Council conducts a vote to determine which applicant should fill the vacancy on the Port &
Commerce Advisory Board with a term to expire in July of 2012.
82
'fit � � T_
Fs
APR 01 ""
or: CITY OF SEWARD, ALASKA
APPLICATION FOR THE
F' ,fs �- �yx. � y
3 P'� :, 6 SFr,
OR THE PORT & COMMERCE ADVISORY BOARD
NAME: .4y-) el 0, MCk-
STREET ADDRESS: 103(o & &u✓ pi, w N r.
MAILING ADDRESS: , _S (�J PQ RA A k 9'9 ( 6/
HOME TELEPHONE:,?0 -.6 ) -(r,C/ /, 5 BUSINESS PHONE: 670 -.(,,- 3 - g- 6, a 7
FAX NUMBER: id A
EMAIL: a, br. k 1- 155) P r 7a 11 • c c yvt.
LENGTH OF RESIDENCY IN THE SEWARD AREA: 1115
PRESENLY EMPLOYED AS: An -I-her s �1 )Ctv + e ici'V
List any special training, education or background you have which may help you as a
member of the Board. 5 r_‘ ) ( vi ; v t l-i z e iv,S Te r-,-E T e
a�,�� v�b..'v w }in ha Y 1 user , � J flIAi{1k' 1 k ✓' sfee( ( . . `r
'-0\x) beti-e r 1 Ili o- 3-e Wave( l,? 5 4 tOw ft
Have you ever been involved in port operations? If so, briefly describe your
involvement: .5∎1 f usv hol, d r, c—Cf C e , 4
;O,I f .s k . W O r Lo el (A 5
I .ica s,y+ -Co r PP-0'1B.
I am specifically interested in serving on the Port and Commerce Advisory Board
because: W (a 1.A)<, -k-.r, be a pa r t (2) -i ikP ? r0(eS S. I -[ee
4 +5 G `} yo u+ d-Pcel 4- kt le2e1e4 rcl CmA (id obi assist h
iv! al 1-15 Sejavc1 a.il 1 }-ccu( �
Have you ever served on a similar board elsewhere? Yes or ,g
If so, where? And when?
Are you available for meetings at noon (second Wednesday of each month)? 3
If appointed, are you willing to travel occasionally? yL
. -
_ q/9-11
� N ; P e / DATE
83
CITY OF SEWARD, ALASKA
APPLICATION FOR THE
FOR THE PORT & COMMERCE ADVISORY B Ag fl '� D
MAY 0 9 2011
NAME:1t O€ +
K
STREET ADDRESS: 7,40 9 l C V‘frTr't.- v, S -�' .
MAILING ADDRESS: /q U go X 16 `'f ! .S-e L,i, Ord r A lc 97C 64-I
HOME TELEPHONE: 3 — 36 0 BUSINESS PHONE: Z 2 - 78Z-
FAX NUMBER:
EMAIL: i
LENGTH OF RESIDENCY IN THE SEWARD AREA: /
PRESENLY EMPLOYED AS: Q V7( — Cr 5 . /dm
List any special training, education or background you have which may help you as a
member of the Board. ( K,-c -a� , /lc - e i 704- � erc,A//j
C. o vvle r a_jc i4 G typts4 gkii PS S frz�y+ i ri +6f sJ ,' 1 Ov,a i44 ,+CS
Have you ever been involved in port op rations? If so, briefly describe your
involvement: (??.-\ A S �� �� / 2 ro rs aS
F3dre.E' 16 ✓rs Sd :4,.� �c r. , h !�� ncN /,4' 5 ,
I am specifically interested in serving on the Port pnd Commerce Advisory Boarai
because: / G✓6v/cI // -- 6 he / i �✓z trt' cv,�L, jo ck1 9 ovCr,/ /4,.,
Ar ij c L- / / 17 )1 vc /v f/m O f 1 h--1 Ceb i ✓o
Have you ever served on a similar board elsewhere? `. AY-715-7k_
y �ftM �� es o
baa r6t c,(, �` l d 1 9a✓ a
If so, where? f'+ V - re C And when? 4d ✓iS -t (pill/4 I 4t'< cas p rcja\r 740 d 3
Are you available for meetings at noon (second Wednesday of each month)? �S
If appointed, are you willing to travel occasionally? J S
_7-
5/?/ 0 /1
SIGNATURE / DATE
�4
May 2011 , May 2011 June 2011
SuMo TuWe Th Fr Sa = SuMo TuWe Th 'Fr Sa
1 2 3 4 5 67. 1 2 3 4
8 9 1011 12 13 14 _; 5 6 7 8- 9 1011
15 16 17 18 19 20 21 12.13 14 15 16 17 18
22 23 24 25 26 27 28 19 20 21 22 23 24 25
29 30 31 26 >27 28 29 30
Monday Tuesday Wednesday Thursday Friday
May 2 3 4 5 6
7:30pm P&Z Meeting
LO
N
T
9 10 11 12 13
7:00 pm City Council M 6:00 m Alaska PipelinE i" '
p Y P P 11:30am Sewafl� C'
m
rn
T
16 17 18 19 20
11:OOam AK Railroad Pr 12:OOpm PACAB Work 5 9:OOam Social Security
6:30pm P &Z Work Ses 6:30pm Historic Preser
0
N
2
23 _ . .� 24 25 26 27
5:30pm CC WS
7:00pm City Council M
m
N
T
N
2
30 31 Jun 1 2 3
Memorial Day; Off.es.
m
c
0
m
m
2
Nanci Richey 1 5/18/2011 8:38 AM
8 5
June -2011:- June 2011 July 2011
S uMo TuWe Th Fr Sa : ; SuMo TuWe Th Fr Sa
1 2 3 4 1 2
5 6 7 8 9 10 11 3 4 5 6 7 8 9
12 13 14 15 16 17 18 10 11 12 13 14 15 16
19 20 21 22 23 24 25 17 18 19 20 21 22 23
26 27 28 29 30 24 25 26 27 28 29 30
31
Monday Tuesday Wednesday Thursday 1 Friday
May 30 31 Jun 1 2 3
(7 0pm CC WS; Chamk
2
6 c _ 7 8 9 10
/ :OOpm City Council W 7:30pm P&Z Meeting 11:30am Seward Cow_
0
13 14 15 16 17
6:OOpm Alaska Railroac 12:OOpm PACAB Work S 9:OOam Social Security
7:OOpm City Council M 6:30pm Historic Preser
-+
20 21 22 23 24
6:30pm P &Z Work Ses
N
O
N
c
28 29 30 Jul l
5:OOpm CC WS; 2010\
7:OOpm City Council M
N
7
Nand Richey 1 5/18/2011 8:38 AM
1