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HomeMy WebLinkAbout02232015 City Council Minutes City of Seward,Alaska City Council Minutes •February 23, 2015 Volume 39, Page 474 CALL TO ORDER The February 23, 2015 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Christy Terry David Squires Iris Darling comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Absent—Dale Butts CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Reene Audette had a conversation with Alaska Waste last week and found it to be troubling. She understood the code provisions on garbage collection, but didn't understand it to warrant the poor customer service she received. The cony ersation went unresolved and Audette didn't think Alaska Waste should have the right to talk to people inappropriately. Tim McDonald attended a recent Cook Inlet Aquaculture Association(CIAA)meeting as the City of Seward representative. There were 17 members present. The meeting included a memorial for former member John Efta, a report on brewed stock capture and fry stock bid, and budget matters. The budget for 2015 was$7,550,159. McDonald noted the Matanuska Susitna Valley was dealing with some invasive species problems with pike taking over other species. He added an individual spoke on the"bio-dry"system in Kodiak which eliminated putting fish waste in the water. McDonald ran out of time,and the City Council allowed him to speak for a minute and a half more. 111 McDonald continued on that this bio-drive system sounded like a better practice than what most canneries were doing, by pumping their matter into the water. The association passed a new policy reducing the amount of chemicals in raising smolt. CIAA was running four hatcheries on the City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 475 aforementioned$7 million budget.McDonald concluded with reports that 2015 was forecasted for a huge year for fish habitat. Lynda Paquette would love an update on the timeline for the sewage lagoon project.It was almost the end of February, and not seeing any action was making people nervous. She encouraged council to think about being proactive by drafting a letter to lodging businesses on Lowell Point for this year for guests who had complaints about the conditions. The summer was looking busy, so it would be nice to give them something from the city holding the business on Lowell Point harmless and apologizing for any inconvenience.The negative online business reviews seemed to quiet down, which was good, but she hoped she and the city could stay on top of this issue coming into the summer season. Bob Linville thanked council for passing the crane resolution in January. He noted the discussion item on bringing more commercial fisherman to Seward on council's agenda tonight. Linville felt Seward did not have the infrastructure and taxes were extensive.He suggested using the raw fish tax to fund some projects and create a priority list to keep the harbor facilities ahead of the curve. The taxation needed to be changed and the city should impose a flat tax. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the January 12, 2015 and the February 9, 2015 Regular City Council Meeting Minutes. Appoint Janet Coulter and Margaret Anderson to the Planning and Zoning Commission,with terms expiring February 2018 (Coulter) and February 2016 (Anderson). SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards—None Chamber of Commerce Report. Cindy Clock welcomed the R/V Sikuliaq to town and noted it was exciting watching the ship come in today. Clock thanked everyone for attending the chamber's Community Awards Banquet. The newly improved community events calendar was online and the chamber had signed up many people to contribute to it. The Marketing Committee would be meeting next Wednesday to discuss improving local events. Clock noted $3.72 billion dollars were spent a year in Alaska. It was estimated that tourism accounted for 25%'of sales tax revenue in the borough.2015 was looking like a high year for tourism.Norwegian Cruise Lines was scheduled to come to Seward this year. The next chamber luncheon was March 6, 2015 where Seward Community Health Center Executive Director Patrick Linton would be the speaker. The Energy and SMIC groups were meeting this week. City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 476 City Manager's Report. Jim Hunt stated there had been no purchase orders approved between$10,000 and$50,000 since the last council meeting. Hunt referred to the written report in the council packet and also added that he,Long,Butts,and Bardarson traveled to Juneau last week to attend Alaska Municipal League meetings and to meet with legislators. He reported on the power outage last week, explaining an outage at Cooper Landing. The city had difficulty firing up its generators,but they ultimately ran for four hours while the main issue was being resolved.While the staff encountered some obstacles,Hunt said it was a good learning experience and the city took away good notes to improve the process when an outage occurs. Jack Maryott from the Kenai Peninsula Borough would be giving council a presentation on recycling during their April 13, 2015 meeting. Hunt noted he received a Department of Transportation Memorandum of Understanding today for paving in town, which was great news. The equipment for the sewage lagoon dredging project would ship next week and should arrive in Seward in about two weeks. The City Manager updated council on potential United States Coast Guard changes on the horizon. He received reports that the Coast Guard was developing a long range planning study,and may consolidate all the new cutters to Kodiak and Ketchikan. If council agreed, he would contact other communities in the area and begin to form a group to communicate with state and federal governments. In response to Terry,Hunt said he would follow up with the Finance Director on the Alaska Waste contract and what might be done to improve poor customer service.Casagranda added Alaska Waste was now picking up garbage on the streets and no longer providing alley pickup service in some neighborhoods. Hunt was unaware of this and would follow up on that as well. The City Manager noted he would give information on the sewage lagoon dredging project as soon as he received it. He reminded the public to please call the non-emergency dispatch line to report odors detected, at 224-3338. Squires added people who had always had their garbage picked up in the alleys had container racks installed and this service should continue by alley.Long said staff would look into the clauses of the garbage contract. Darling reminded everyone the city had a work session scheduled on the garbage collection policy for March 9, 2015. Other Reports,Announcements and Presentations Year End Report for Providence Seward Medical and Care Center by Administrator Joe Fong. Alaska Municipal League Winter Conference Travel Report by Mayor Bardarson and Council Member Butts.Bardarson stated Butts gave her a written report which she read out loud.The Seward delegation met with Representative Chenault and several senators including Senators Giessel,Tilton, and McGuire.They attended a presentation on legalizing marijuana.The delegation was able to tour the RN Sikuliaq while it was in Juneau. They attended a reception at the Governor's mansion, a reception on board the Sikuliaq, and dessert at Senator Micciche's home. During their visit, the City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 477 Seward delegates were able to hear many officials speak, including the governor. A budget cut throughout the state was the main theme. Bardarson found it interesting that even with cutting 25% of government and oil at$100/gallon,the state was still overspending. She took away from this visit that communities needed to figure out what could they live without.Hunt added they visited with Pat Pitney, Director of the Office of Management and Budget, who they knew from her previous involvement with the Alaska SeaLife Center Board and the development of the Sikuliaq. He spoke with the new Department of Corrections commissioner and Long stated they had a good meeting with new Department of Transportation Commissioner Mark Luiken.They discussed flooding issues at the Seward airport. PUBLIC HEARINGS Ordinances for Public Hearing and Enactment Ordinance 2015-001,Amending Portions Of Seward City Code§15.10.140.B Definitions,And §15.10.225 Land Uses Allowed Table,To Allow Storage,Warehouse And/Or Distribution In The Resource Management Zoning District By Conditional Use Permit. Motion (Keil/Terry) Enact Ordinance 2015-001 Long said this ordinance was not an extension of a use but a use that was overlooked.Many uses were allowed by conditional use permit, and the concept of storage to allow this was minor. Staff recommended enactment. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened Carol Griswold urged council to reject amending the code to allow this change. She first heard about this ordinance on Seward City News.No one spoke on this matter at the Planning and Zoning level. She stated no notices were mailed out pertaining to this code revision. The Resource Management zone was expansive,and was mostly adjacent to residential properties.It was grouped with many public uses and was concerned about the increase in traffic.Things like idling trucks and aesthetics were not regulated by conditional use permit and for these reasons she asked council to not extend the use of storage, warehouse, and/or distribution into the Resource Management zone. No one else appeared to address the Council and the public hearing was closed • Council recessed at 8:10 p.m. Council resumed at 8:14 p.m. Terry asked the clerk's office if all the public notification requirements were met.City Clerk Johanna Kinney attested all the necessary public notice requirements were met on the City Council level.Long confirmed all notice requirements were also met on the Planning and Zoning level,and added that when a conditional use permit was applied for was the appropriate time to send notice to nearby property owners. City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 478 Casagranda reiterated this provision was changing the table to allow by conditional use permit, not outright, and Hunt added any potential use would require a review each time. Squires didn't mind the conditional use process, but didn't like the "and/or" language. He spoke to Community Development staff about this,and after looking at the areas accessible by road, there were only two areas that would have potential traffic and noise concerns: one in Forest Acres, and one by Afognak Logging. Darling asked for a ruling on a potential conflict of interest, as she was an adjoining _ property owner in this case.Council did not object to the mayor's ruling that a conflict did not exist as it was not financial and it was too broad of an interest. Long said the conditional use permit process allowed the commission to put parameters on the permit and have some balance to the use and the land's neighbors. Motion Passed Unanimous UNFINISHED BUSINESS—None NEW BUSINESS Resolution 2015-014,Approving A Contract For External Audit Services For The Years 2014, 2015,And 2016,And Appropriating Funds. Motion (Terry/Casagranda) Approve Resolution 2015-014 Hunt said it was time again to put out the city's audit services for proposal. The council was informed of the scoring criteria at a previous meeting. The Request For Proposal (RFP) was appropriately advertised and also sent to interested firms.Two proposals were received:BDO USA, LLP and Altman, Rogers & Co. BDO scored the highest and therefore considered the successful proposer. BDO had a higher overall price, but the hourly cost by BDO was lower than the other proposer, which meant BDO included more hours in their proposal to conduct an effective audit. Finance Director Kris Erchinger said this was the third audit RFP in a row where they had only received two proposals.There were actually only three firms in the entire state that could do this type of audit work.The proposals demonstrated what she expected to receive.Altman,Rogers&Co. was a good firm,but their focus was primarily on school districts.BDO scored higher because they had experience with city utilities and health care,which was unique for a municipality.The city had been using BDO since 1997.Both companies had long standing relationships with their clients.BDO audited many community health centers as well. BDO would have a two week audit in person, Altman was proposing a 4-5 day audit, which Erchinger thought could be concerning. Altman's scope of work didn't seem to realize the complexity of the audit,she felt.If the scope was more than anticipated, the contract would need to be renegotiated, which was also concerning. She recommended the city stay with BDO for the next three years. l City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39,Page 479 In response to Keil, Erchinger said there was $95,000 budgeted in 2015 for the 2014 audit, and estimated$90,000 budgeted in 2014 for the 2013 budget. In response to Keil,Erchinger stated Kim Kowalski-Rogers, Michelle Endresen, and she scored the proposals. Erchinger stated BDO purchased Mikunda, Cottrell & Co. in 2012. Long added last year's legislative session introduced legislation that was going to prevent local governments from using price as a criteria for the RFP process,which gained interest but was not approved. There were firms out there surprised the city was still using price as a factor. In response to Squires, Erchinger said BDO was onsite last year for two full weeks,with at least four people, initially, and senior partners who arrived later in the audit process. Darling spent some time researching this process because the BDO proposal was so much more money. She appreciated what Erchinger said about pros and cons of staying with BDO. She contacted staff for the City of Nome,who used Altman,Rogers&Co.,and they had positive things to say about that firm. Keil agreed BDO's costs were high, but at the same time they owed the public a comprehensive audit of city funds. They might not be getting their money's worth with the other company with a four day audit. Hunt added their concern was perhaps the firm might not be as familiar with the complexity of the city's funds, and he was worried about additional change orders and increases because they weren't sure what they were bidding on. Squires inquired what would happen if the city didn't approve any change orders,would they have to go out to bid again? Erchinger said it's never happened, but she would expect they would have to complete the audit with that firm and pay what they were asking,and possibly terminate the contract due to breach of contract for the remaining years. The city would be in a tough spot not to move forward with completing the audit. Terry said it would be important for council to remember they went out for proposals and not bids. She also noted the full name of the winning proposer was BDO USA,LLP and that should be indicated on the agenda items before them. In the past, she had insisted to get the scoring criteria prior to advertisement so council could evaluate and change the criteria if they wanted to. Council couldn't sole source to Altman. They would have to go out to bid again if they failed this contract tonight. Motion to Amend (Terry/Keil) Amend Resolution 2015-014, adding the words"with BDO USA,LLP(BDO)"in the title of the resolution,and add"BDO USA, LLP" at the beginning and signatory page of the contract. • Motion to Amend Passed Unanimous City ofSeward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 480 Motion to Amend (Terry/Casagranda) Amend Resolution 2015-014, inserting a new section two to the resolution that reads, "BDO's three-year fee is $308,760 ($99,785 for 2014, $102,980 for 2015, and $105,995 for 2016)." and renumber the sections accordingly. Motion to Amend Passed Yes: Terry, Casagranda, Keil, Squires, Bardarson No: Darling Darling asked if they could amend the agreement and resolution for a one year agreement. Hunt said they'd have to go out to RFP again for a.one year proposal.Long agreed,and the proposals may be completely different that second time around. Keil looked at the escalation of prices they would be locking in;they knew exactly what they would pay. If they went out for one year, the upcoming years may be even higher. Terry said this could be extended beyond three years by the administration. Motion to Amend (Terry/Casagranda) Amend Resolution 2015-014, by striking the following sentence in section A of the agreement: "This Agreement may be extended for one two-year period upon mutual agreement of terms, and approval of the city manager." With no objection from council, Terry and Casagranda withdrew this motion. Motion to Amend (Terry/Keil) Amend Resolution 2015-014, striking the words "city manager" and replacing with "city council" in section A of the agreement. Motion to Amend Passed Unanimous Main Motion Passed Yes: Squires, Terry, Keil, Bardarson No: Casagranda,Darling Resolution 2015-015,Authorizing A Loan In The Amount Of$1,201,196 In Accordance With The Project Cooperation Agreement Between The City Of Seward And The US Army Corps Of Engineers, Representing The Second 10% City Cost Share On The Breakwater Construction Project,And Appropriating Funds. Motion (Terry/Casagranda) Approve Resolution 2015-015 City of Seward,Alaska City Council Minutes February.23, 2015 Volume 39, Page 481 Hunt felt this was getting close to resolution. In 2003, the city entered into a Project Cooperation Agreement to construct a new breakwater in the harbor by the U.S. Army Corps of Engineers ("Corps) in accordance with the passage of the Water Resources Development Act (WRDA). The agreement with the Corps required the city to pay the local project costs and 20%of the General Navigation Features.The city paid the first 10%of the features up front.The Corps built the breakwater and miscalculated the project. The second 10% of the General Navigation Features was$1.2 million,and the city had the choice of either paying with cash or entering into a loan with a 3.875% variable interest rate. Administration was seeking council approval for this loan authorization but would also look to pay the outstanding balance of 10%by other means,if possible. In response to Bardarson,Erchinger stated the variable interest rate was based on the prime rate,and 3.875%was the estimated initial interest rate. Staff expected that rate to go up.The city was required to put this asset on the city's books and would keep council apprised if they were able to make up some of this balance owed so the city wouldn't have to take a loan out for the full amount. In response to Keil, Erchinger was unaware of a cap on a variable interest rate. Erchinger confirmed this loan amount was factored into the city's financial records before them tonight. Long said this fulfilled the policy function in that they needed to have something on paper that reflected the city's debt as booked so they could constructively talk with the federal government and the Corps for other projects the city needed assistance with.Long noted the harbor could not take on this cost through harbor funds with the existing fee structure. Casagranda said the city needed to make the Corps happy,but she personally wouldn't take a loan with a variable interest rate. She wanted to say yes,but couldn't vote for this interest rate.Rates were currently low, but they were projected to go up. Erchinger said the city was borrowing on an asset they could not sell. They were asking for a loan on a breakwater. It was a challenge to find a lender in a situation like'this and this'was the standard contract for the Corps. They could do some research on other loan agreements prior to signing this.The city could also seek to fmd more funds to pay off this debt, but it likely depended on when the Corps was going to ask for first payments. Motion Passed Unanimous Other New Business Items Discussion on how to attract and accommodate more fishing vessels in the Seward Small Boat Harbor. (Darling) Darling thanked Linville for speaking on this issue earlier tonight. She would like to see the city move forward with a flat tax for vessels. Council spoke with the Port and Commerce Advisory Board(PACAB)at their recent joint work session.Bardarson said it was on administration's"to do" list. Long said staff had been working on this concept for a while. The difficulty was finding a way to keep Seward close to a level of income within the budget without putting the burden on all one group. So therefore the effort was to fmd an equitable level of discomfort across the spectrum. City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 482 They had a broader spectrum in Seward and the city was actively seeking vessels larger than 100 feet.At the same time the city didn't want to disadvantage the smaller local fleet or make it difficult for the large, corporate vessels. Finding the balance was challenging. Casagranda asked about communities with grids that had multiple cranes. Seward used to have a similar grid,but it was washed away in a flood in 1995.It was damaged prior to that and was not rebuilt.It was stated that just about every piece of the harbor suitable for construction was being utilized, so something would need to be removed. The new work at the Seward Marine Industrial Center(SMIC) could open up some possibilities,too. Darling asked if it was possible to suspend the rules to allow Linville to talk on this issue. Terry thought a work session or referring to PACAB would be better.Hunt said they would need to find more spaces.Long said they didn't want to prioritize customers. Terry thought there was some language in the Small Boat Harbor Plan about the grid. Direction to Administration on the repair of the downtown decorative lights. Long handed out some documentation with options to consider. Electric Utility Manager John Foutz noted there were pictures and prices on a two arm and a four arm assembly fixture. Bardarson said the pictures needed to be provided to scale for council. Foutz confirmed the vendor would generate a photo with a two or four arm assembly light, he just had not gotten those yet. Darling wanted option 1, which was recreating the five bulb light. Terry said option 1 was fine.Foutz said it would take 4-5 weeks once ordered for them to come in.Each light took about one day in labor, so he estimated a few weeks total for labor. Council directed staff to pursue option 1, which would leave the current five light arm assemblies in place and the hardware would be replaced with LED lights. INFORMATIONAL ITEMS AND REPORTS Providence Seward Medical Center Preliminary Financial Reports through November and December, 2014. Council requested this report come back to the March 9,2015 agenda under Other New Business. City of Seward Preliminary Financial Reports through December, 2014. Council requested this report come back to the March 9,2015 agenda under Other New Business. Letter to Governor Walker RE: Funding of Public Nursing in Seward, Alaska. Letter to Senator Giessel RE: Substitution Senate Bill 4, relating to the financial disclosure statement requirements mandated by the Alaska Public Offices Commission. COUNCIL COMMENTS Terry thanked Butts and Bardarson and administration for traveling to Juneau last week.The face-to-face time there was invaluable. Terry reported she traveled to Anchorage to sit at the city City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 483 table at the Alaska SeaLife Center Marine Gala, and that it was a good opportunity to support that business and to network. Casagranda thanked Cindy Clock for getting the community events calendar up and running and complete. Seward was not a dull place to be, and this calendar would show that. She congratulated Anderson and Coulter for serving again on the Planning and Zoning Commission. She also attended the Alaska SeaLife Center Marine Gala and it was nice to be there and there was good representation from the center and Seward as well.The event encouraged people to come to Seward, she thought. She reminded the public that anyone on Lowell Point having reports on the sewer lagoon can call 224-3338 and report it. Squires attended the Chamber Awards Banquet and he was pleased with the awards they gave out to local business folks.It was neat to see Urbach's win the Alaska Starts Here award. On a personal note,he was building a new building that was keeping him busy. Squires stated 95%of the materials he purchased were bought locally and a lot of those materials he got better prices on by buying local. Darling said the chamber did a great job at their awards banquet. Long said it was good to travel on behalf of the city. At the chamber awards night,_ Blackwater Railroad played and announced they were cutting records and going on tour. They intended to promote Seward in their travels. Hunt ran into a film company from South America,who was traveling to exotic surfing spots and he hoped they would come to Seward to film. Bardarson welcomed the Sikuliaq to Seward. She thanked the volunteers in the community. The recent Mount Marathon rescue efforts last week reminded her of what a giving community Seward was. CITIZEN COMMENTS Linville enjoyed listening to discussion on the crane.He said there would be value in having a work session with PACAB on that issue.Linville saw from the discussion tonight there were things that could be clarified.It was a matter of how to prioritize the boat customers and he knew that was a challenging scenario. He would keep working on it and PACAB would be happy to have a work session with council. Tim McDonald said if the city were to rebuild a grid, it should be environmentally sound and have a deep cement basin for drainage. The grid really helped the smaller vessel owners. McDonald didn't think people were aware of the effect of what the city was doing to Resurrection Bay.He felt the sewage lagoon at Lowell Point had to go.It was obsolete and vulnerable to elements and disasters. 80 acres of sewage could be let loose and that was concerning. McDonald also recommended what Kodiak was doing with bio-drying their waste matter by burning the matter and shipping it off instead of dumping into the bay.They needed to get a handle on what the cruise ships dumped into the bay. He didn't want Seward to turn into a cesspool. City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 484 COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Terry wanted on the record that she personally spoke to the Public Works Director who said at no point did the the sewage lagoon ever overflow into Resurrection Bay. She added there were regulatory agencies in.Alaska monitoring Seward and other communities to make sure they were following proper policies. Motion (Terry/Casagranda) Go into Executive Session to discuss the City Clerk's evaluation. The City Clerk was invited to attend. Motion Passed Unanimous Council went in to Executive Session at 9:55 p.m. Council came out of Executive Session at 10:30 p.m. Council recessed the meeting until Tuesday,February 24, 2015,at 12:05 p.m. ********************************************************************************* Council resumed the meeting on Tuesday, February 24,2015 at 12:05 p.m. There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Christy Terry David Squires Iris Darling comprising a quorum of the Council; and Johanna Kinney, City Clerk Absent—Dale Butts Motion (Terry/Darling) Go back into Executive Session to discuss the City Clerk's Evaluation. The City Clerk was invited to attend. Motion Passed Unanimous Council went into Executive Session at 12:06 p.m. *Council Member Casagranda left at 12:30 p.m. Council came out of Executive Session at 12:35 p.m. City of Seward,Alaska City Council Minutes February 23, 2015 Volume 39, Page 485 ADJOURNMENT The meeting was adjourned at 12:35 p.m. Ja ,__ ,. , . �� --• 41 24 4!�i�_ Jo anna 0, CMC dean Bardarson Ci Clerk (City Seal) , Mayor Q Q. ¢pe_ t.Ad .tl�e " ^ a L P E ° ' v.-.`l 03 4. rq m "..4.1^,.. O p 1 : Y T _n, a ® O stir-, ;`, T aZ-', D N W C O • -w�..._ 1 o o i o , \ee, a ,