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HomeMy WebLinkAbout06242013 City Council Minutes City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 153 CALL TO ORDER The June 24, 2013 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Vanta Shafer Bob Valdatta Ristine Casagranda Jean Bardarson Christy Terry Marianna Keil comprising a quorum of the Council; and Jim Hunt, City Manager Brenda Ballou, Acting City Clerk Jean Lewis, Temporary Deputy City Clerk Cheryl Brooking, City Attorney Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Marilyn Sutherland commented that bed tax revenues should be utilized for the upkeep of the city's infrastructure such as sidewalks, roads, water /wastewater, etc. If the infrastructure was not properly maintained, the city would have a huge liability. She wished the Chamber of Commerce would continue to receive some funding for marketing, but wanted most of the money going towards the city's infrastructure. Tom Swann stated he had been in the bed and breakfast business for ten years and had never lost customers because of bed taxes. He thought it was a great source of revenue that offset the cost of being in the tourist industry. Swann also felt it was essential for the Chamber of Commerce to be given a portion of the bed tax money for marketing. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson/Keil) Approval of Agenda and Consent Agenda Keil pulled Resolution 2013 -051 from the consent agenda to correct information in the packet. City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 154 Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinances for Introduction Ordinance 2013 -010, Amending Portions Of Seward City Code 15.25. Floodplain Management To Adopt The Digital Floodplain Rate Maps (DFIRM) And The Flood Insurance Study (FIS) Dated September 27, 2013 As Established By FEMA And Update Portions Of Chapter 15.25 To Minimum FEMA Requirements. Resolution 2013 -049, Accepting Funds From The Alaska Online With Libraries (OWL) Project For An AWE Early Literacy Station In The Amount Of $2,953.00 And Appropriating Funds. Resolution 2013 -050, Authorizing The City Manager To Sign An Extension Of A Special Services Contract Between The City Of Seward And The Department Of Public Safety Providing Dispatch And Clerical Services To Public Safety Employees In The Seward Area For Forty Eight Thousand And Five Hundred Dollars ($48,500.00). Resolution 2013 -052, Authorizing The City Manager To Enter Into A Revised Contract With The International Brotherhood Of Electrical Workers (IBEW) Effective July 1, 2013 And Ending June 30, 2016. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards - None Chamber of Commerce Report, Cindy Clock stated the 2014 membership decal stickers were in, and the halibut derby was going well with a 166.8 pound halibut caught off the vessel Cisco Kid. She thanked all the businesses that sold tickets, people that volunteered at the weigh in station, and also thanked all the Captains and anglers that participated. Clock stated a gentleman named Jake Collins from Wasilla was the new face at Edward Jones. She referred Council to an informational laydown she provided which showed bed tax across the state. Soldotna was now thinking of implementing a similar bed tax. Clock referred to nine hotels, 31 Bed and Breakfasts, seven lodges and five vacation rental businesses that the Chamber knew of because they were members. She strongly supported the bed tax which she said was responsible for decreasing taxpayer liability. Clock reminded that the 1995 ordinance was approved by a majority vote to generate year round employment and to market the community for year round investment. The Chamber spent bed tax money on such items as brochures, videos, travel to sport and trade shows, etc., and always reported those expenditures to the city council. She spoke about the certificate of insurance underwriter's decision that no candy be thrown during the 4 h11 of July parade. City Manager's Report, City Manager ty g p ty age Jim Hunt stated a purchase order was issued through the Electric Department to Valley Power Systems for $17,700 for repair parts for generator #2. Contractors were planning to move the modular units to be used in the construction of the new City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 155 AVTEC dorms the week of July 29. Administration had requested assistance from the Army Corp of him Engineers to perform mandated tunnel inspection on the Lowell Canyon Diversion wall. Since Kate Rullman started work as the new Library Museum Collections Coordinator, the Library Museum was fully staffed. Scott Carrlee, Curator of Museum Services was invited by the Resurrection Bay Historical Society to visit the Seward Museum on June 13 & 14, 2013. The library usage figures were: April 2012. April 2013 May 2012 May 2013 Library Visits 5005 7653 6130 7550 Circulation 3606 4,716 3807 4162 Computer Use 623 1330 953 1196 Wireless (1 hour 278 570 513 695 sessions) Museum visits n/a n/a n/a 577 Community 598 721 Use /Programs Hunt spoke of recent electric outages and notified Council of the recent Request for Proposals for architectural services for the new warehouse building at Fort Raymond and gave the proposed scoring criteria. A new contract effective July 1, 2013 to 2016, added a new section which allows the Electric Department to pick up branches at a reduced rate and had an increase to the pension fund of 2.6% over last year. In the Harbor, the Mariners memorial "Compass Rose" was making good progress. Design build proposals were solicited for the Harbor restroom improvements project and Harmon Construction submitted the best (and only) proposal. North Star Paving and Construction from Soldotna was the apparent low bidder for the Z -float Uplands Paving project opened June 19. Hunt reported the State of Alaska expected to reprocess and pay Providence Seward the disputed Medicaid rate claims per the recent settlement agreement immediately, but had only committed to paying 3 of the 4 years by year end. The expected impact of three years of claims is approximately $4.5 million, with the final year's impact of $1.5 million coming in 2014. Finance was beginning an internal enterprise fund rate review update for the electric, water, and wastewater Funds, in conjunction with the annual budget process. The updated Capital Improvement Plan document based on the Councils' recent capital budget discussions on the enterprise funds would come for Council approval in July. Public Works was working on a subdivision agreement related to the North Seward Water Storage Tank replat. A new waterline was installed on S float at the harbor. They were also submitting a drinking water questionnaire to ADEC municipal loans, continuing the ongoing battle of patching pot holes, striping, ditching, sludge sampling of both lagoons, sidewalk repair, ADA issues and dig permits. Parks and Recreation was gearing up for the 4 of July, repainting all parking lots and field maintenance at Jon Perry and Citizens Fields. They trimmed alders along Port Avenue in the Northeast lot and had worked with the Campground Department to City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 156 install an automated pay station at the RV Dump Station. The TYC greenhouse was up and growing and a new program "Feel in' Good Mileage Club' ", a fitness incentive program designed to promote healthy lifestyles and fight obesity among youth was established. A major remodeling project at the AVTEC gym which includes new panels, ADA bleachers, lighting and possible floor repair was starting. Assistant City Manager Ron Long was heading to Anchorage to view the Alaska Railroad Corporation's master plan which included Seward. Council Member Christy Terry requested the city look into waiving internet fees for locals and students in the winter. She also referred to the RFP /bid process in the Seward City Code, and reminded Administration of the procedures to bring it back to the Council for approval, Both Council Members Keil and Shafer thought the assessments for sidewalks and streets were going slowly and reminded Administration they were a number 1 priority. City Attorney's Report, Cheryl Brooking gave a report for a two month period. They provided advice and responded to contract questions, worked with various departments on tax foreclosed property laws, harbor leases, contracts and impound procedures. She had recently provided staff with Title 6 training on RFP and bid processes. Mayoral Report, David Seaward thanked everyone for attending this meeting and Martha Fleming and GCI for broadcasting the meetings. He mentioned a resolution on the Iditarod historic trail from mile 3 to sawmill creek, and an alignment and continuation of a bike path in that area, which may need support from Council in the future. Other Reports, Announcements and Presentations Annual audit presentation from Mikunda, Cottrell & Co. for the year ending December 31, 2012. Michelle Drew had just given the Council a detailed report at a work session before the meeting and thanked the city for their business. She stated the audit received a clean opinion, and financially, the General Fund had a good year. Seward brought in slightly more revenue, and spent a little less on the expenditure side from the previous report. The Enterprise funds covered operating funds but noted debt service calculations were not included in that assessment. Some depreciation had been funded, records were clean and in good order and no deficiencies were reported. She noted City financial statements were complex, and Seward would again participate in an award program for excellent reporting requirements. Second Quarter Report from Planning & Zoning Commission. Commissioner Martha Fleming stated there was still one opening on P &Z that they would appreciate the public apply for. The Commission had been working with the Flood Board and on city land uses and recommendations that would eventually come to council. il l PUBLIC HEARINGS Resolutions Requiring Public Hearing City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 157 r. Resolution 2013 -047, Authorizing The City Manager To Negotiate And Execute A Lease Agreement With He Will Provide Inc. For The Purpose Of Providing A Charitable Food Distribution Program In The Basement Of The City Annex Building. Assistant City Manager Ron Long met with food bank personnel and looked at various potential sites for the new location. In the old library site, called the City Annex Building, the food bank would have an adequate storage and check out area. Administration thought it was in the public's best interest not to require an appraisal since this agreement was less than fair market value, but did require insurance and indemnity. Access for the public would be from the alley off Fifth Avenue and Adams Street. The building space that would be occupied was a portion of the basement, and the building would still have the entire top floor plus a large community room downstairs left to use for other purposes. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Robert Pack said the food bank was a free - choice agency where clients could shop for the food they needed, up to ten pounds each week, rather than be handed a pre -filled grocery bag. The food bank operated on grant funding, private donations from the community and local churches, and were staffed with 100% volunteers. The only requirement for someone to receive food was an Alaskan ID. Their rent and fuel costs for traveling to Anchorage were their main expenses. A ten- pound bag cost the food bank $0.80 cents and they distributed over 50,000 pounds of food in Seward and throughout the surrounding community each year, serving an average of 100 families each week. The food bank was established in Seward in 2008. Motion (Terry /Shafer) Approve Resolution 2013 -047 Valdatta asked about plumbing in that area of the basement, and to know if the volunteer staff would have access to restroom facilities. Long said the current plans for the space did not include restroom considerations, but he would make sure they had a key to let themselves into the area that did have restrooms. Shafer was glad to see improvements and was delighted that there would be more space for the food bank and more parking for their clients. Keil agreed that it was not in the public's best interest to require an appraisal. No one on council raised an objection to that. Motion Passed Unanimous Resolution 2013 -048, Authorizing The City Manager To Enter Into A New Lease With Raibow Fiberglass And Boat Repair, LLC For Lot 4, Block 3 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -27 Seward Recording District, Third Judicial District, State Of Alaska. City of Seward, .ataska City Council Minutes June 24, 2013 Volume 39, Page 158 Harbormaster Mack Funk spoke to the location of the property at the Seward Marine %NJ Industrial Center (SMIC) which was west of the AVTEC Fire Training Center across the bay. This business was owned by David Phillips and had been operating in Seward for several years north of the harbor area. This was to be a standard 20 -year lease, with two 5 -year extensions, and followed the normal lease city structure. 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 (Keil /Shafer) Approve Resolution 2013 -048 Council suspended the rules to allow David Phillips to answer a question of whether the Travelift could reach the leased yard. David Philips stated he would be using this property primarily to stage and store boats. Motion Passed Unanimous UNFINISHED BUSINESS - None NEW BUSINESS Resolution 2013 -051, Authorizing The City Manager To Enter Into A Construction Contract ••r With Harmon Construction For The Civil And Site Work And For The Foundation Of The Electric Department Warehouse In An Amount Not To Exceed $493,190, Establishing A 10% Contingency Fund And Appropriating Funds. Motion (Bardarson /Terry) Approve Resolution 2013 -051 Utilities Manager John Foutz stated there were two bidders, and this contract was being awarded to Harmon Construction as the most responsive and responsibly proposal. The original scoring criteria in council's packet had an error in the grading results. A laydown version showing the corrected results was provided. Motion to Amend (Bardarson /Shafer) Accept the laydown version of the scoring results. Motion to Amend Passed Unanimous Consent Terry pointed out that this should be referred to as a proposal, not a bid. Motion to Amend (Terry /Keil) Strike the word "bids" on the 5 and 6 Whereas and substitute the word "proposals." Motion to Amend Passed Unanimous Consent City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 159 ion In response to Seaward, City Attorney Cheryl Brooking stated it was unconstitutional to award a proposal based on local hire or location. Main Motion Passed as Amended Unanimous Other New Business Discussion on council repealing Seward City Code 5.45, Hotel/Motel Room Tax. Terry disclosed a possible conflict of interest because she was the Acting Secretary for the Chamber of Commerce. She stated no direct or indirect financial gain based on the outcome of this discussion. Seaward ruled no conflict existed. Keil disclosed a possible conflict of interest because she was an honorary member of the Chamber of Commerce with no direct or indirect financial gain. Seaward ruled no conflict existed. Shafer disclosed a possible conflict of interest because she was an honorary member of the Chamber of Commerce with no direct or indirect financial gain. Seaward ruled no conflict existed. Casagranda disclosed a possible conflict of interest because she collected bed tax for her business. Seaward ruled no conflict existed. Acting City Clerk Brenda Ballou steered council to the laydown information which was furnished by the clerk's office, Chamber of Commerce and citizen comments. Seaward wanted to repeal the bed tax because of the discrepancy of 3% outside city limits versus 11% inside city limits. Terry thanked him for bringing forward the discussion, but noted the Chamber of Commerce was bringing visitors to town with those dollars. Seward competed with many other communities and could not drop the ball now or else might lose the advantage. She added that it also brought jobs and livable wages to Seward workers. Shafer asked where the city would cut the budget to make up this deficit. Seaward thought there were ways to cut within the city budget. He wanted to bring this up because the other side of the peninsula and outside the city limits didn't have the bed tax. Terry stated Seward had good sales tax numbers and reminded Seaward that he wanted to increase property tax to pay for the Library Museum. Shafer reminded that the bed tax was voted in by the people of Seward with the understanding some of the money would go to marketing. She felt the people implemented this and it was up to them to do an initiative if they wished, and that repealing would be stepping outside the tow purview of council. Shafer stated not one person had ever asked her to get rid of the bed tax. Seaward noted that was a great point, but thought times were different since 1995, and said City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 160 the General Fund revenues were healthy enough to absorb the bed tax. Nite Keil weighed in stating this money promoted Seward, new businesses and brought in new families. She reiterated that a huge margin of voters requested and passed this initiative. Bardarson thought the public had spoken, and too many other infrastructure and improvements needed attention. She did not want to take money that could otherwise go toward streets and sidewalks. Valdatta noted bed tax was strictly on the honor system in reporting and stated it would help if the city received the tax from outside city limits. Seaward recognized the wishes of the council and proceeded with the agenda. INFORMATIONAL ITEMS AND REPORTS - None COUNCIL COMMENTS Bardarson thanked the Finance Department and wished them good luck on their upcoming software implementation. She wished the community a happy Fourth of July. Keil thanked the volunteers and organizers from the food bank, and stated it really was a mission of love and a charity and that was what made Seward as great as it was. .ter Shafer had a new intern working for her from Illinois who had told her she felt a great sense of community here. Valdatta wished everyone a happy Fourth of July, and welcomed Retired City Clerk Jean Lewis back to help out this summer. He also thanked the community for putting him on council for so many Fourth of Julys. Terry urged people to get flood insurance and thought this was the best opportunity to purchase before the flood plain mapping was complete. She asked for the public to fill the vacant seat on the Planning & Zoning Commission. She thanked the food bank and welcomed Jean Lewis back. She announced the birth of Jack Alexander Kinney and congratulated the Kinney Family. She thanked Brenda Ballou for being Acting City Clerk during this time. City Attorney Cheryl Brooking remembered working on an agreement between the city and the Chamber of Commerce for the bed tax money. Shafer stated that council and the Chamber of Commerce addressed what percentage of bed tax money would be used for marketing during each budget cycle. Seaward thanked everyone for attending, and sent out a heartfelt thank you to all the service men and women keeping us safe. CITIZEN COMMENTS City ofSeward, Alaska City Council Minutes June 24, 2013 Volume 39, Page 161 Jackie Campbell had fun telling council that in its former location, the food bank used to get flooded, and they were looking forward to their new location. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS - None ADJOURNMENT The meeting was adjourned at 8:36 p.m. keg, Brenda Ba11ou v David Se w Acting City Clerk Mayor '' ° S / c I '' 4%4 ( ''.PO �q ; • � a, /09, R ., q j° ct ., e ' (City Seal) � • SEAL , r ® ce • + i ,r O k