HomeMy WebLinkAbout08132012 City Council Special Meeting Minutes City of Seward, Alaska City Council Minutes
August 13, 2012 Volume 38, Page 879
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CALL TO ORDER
The August 13, 2012 special meeting of the Seward City Council was called to order at 9:05
p.m. by Mayor David Seaward.
OPENING CEREMONY
Mayor David Seaward led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
David Seaward presiding and
Jean Bardarson Christy Terry
Vanta Shafer Bob Valdatta
Ristine Casagranda Marianna Keil
comprising a quorum of the Council; and
Jim Hunt, City Manager
Johanna Kinney, City Clerk
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
APPROVAL OF AGENDA
Motion (Shafer /Terry) Approval of Agenda
Motion Passed Unanimous
NEW BUSINESS
Resolution 2012 -068, Approving A Franchise For The Collection And Disposal Of Garbage
And Refuse With Alaska Waste -Kenai Peninsula, LLC, Subject To Approval By The Voters
Of Seward At The October 2, 2012 Regular City Election.
Motion (Terry /Shafer) Approve Resolution 2012 -068
Motion to Amend (Terry/Keil) Amend Resolution 2012 -068 Striking "Waste
Connections of Alaska, Inc. dba Alaska
Waste" and adding "Alaska Waste — Kenai
Peninsula, LLC" in the title.
Motion to Amend Passed Unanimous
City of Seward, Alaska City Council Minutes
August 13, 2012 Volume 38, Page 880
Finance Director Kris Erchinger stated the city was required to provide refuse service by
code, and although the city was pleased with the current franchisee, it was good practice to put out a
Request For Proposal to seek new responses. There were three responsive and responsible proposals
received as a result, and the scoring criteria indicated that Alaska Waste -Kenai Peninsula, LLC was
the recommended franchisee. This franchisee would not add a fuel surcharge, and would use the rate
of 140% of the Consumer Price Index (CPI) for future increases. There would be an average rate
increase of 25% for residential and commercial customers. The franchisee would be responsible for
direct billing the customers and for providing direct customer service. As well, the franchisee would
continue to pay the city a 3% franchise fee.
In response to Casagranda, Erchinger said the annual CPI increase would likely result in a 4-
5% net increase annually. Casagranda was not supportive of a seven year contract because she was
concerned that the increases would be substantial in the long run. Terry asked if the 3% franchise fee
went into the general fund or the road fund because it was intended to compensate the city for the use
of its roads and alleyways. Erchinger said it went into the general fund, but was not mandated by
code and was not required to have a specific corresponding expense line associated with it.
If the voters voted `no' at the polls for this contract, the city had the opportunity to negotiate a
new contract with the existing franchisee, or council could decide to provide the service by the city
directly by virtually creating a new area within the Public Works Department.
Motion to Amend (Shafer /Terry) Amend Resolution 2012 -068 By Striking
"Waste Connections of Alaska, Inc. dba
Alaska Waste" and adding "Alaska Waste
— Kenai Peninsula, LLC" in Section 5.
Motion to Amend Passed Unanimous Consent
By Unanimous Consent, council suspended the rules in order to allow Matt O'Connell,
Division Manager for Alaska Waste Connections, to speak about the fuel they used in their trucks.
He said the company had a biodiesel plant in Anchorage and 20% of their fleet in Anchorage
currently ran on biodiesel fuel.
Main Motion Passed Unanimous
Council directed administration to bring forward a non -code ordinance to appropriate funds
to educate the public about this issue.
COUNCIL COMMENTS
Casagranda said she was frustrated that she wasn't well educated on this issue. Erchinger
apologized for not getting the information to council in a more timely manner and explained that it
had been a difficult process because she had to create the RFP from scratch.
CITIZEN COMMENTS — None.
City of Seward, Alaska City Council Minutes
August 13, 2012 Volume 38, Page 881
L COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS — None.
ADJOURNMENT
The meeting was adjourned at 9:52 p.m.
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ty Clerk Mayor
(City Seal)
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