Minutes – 12/16/09

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MINUTES
REGULAR CITY COUNCIL MEETING
DECEMBER 16, 2009
The meeting was called to order by Mayor Simeon Swetzof at 9:06 AM. Councilmembers present were Brett Wagner, Myron Melovidov, Brenda Jones, Steve Senisch and Jacob Merculief. Clmbr Jason Bourdukofsky was in Anchorage, present by teleconference. A quorum was established. Mgr Linda Snow and FinDir Sherry Lestenkof were present. The meeting was broadcast on KUHB. / CALL TO ORDER
Clmbr Melovidov moved to approve the agenda, seconded by Clmbr Wagner. There were no changes or additions and the motion carried by voice vote. / APPROVAL OF
THE AGENDA
Clmbr Merculief moved to approve the minutes of the meeting on November 16, 2009, seconded by Clmbr Jones. There were no corrections and the motion carried by voice vote. / 11/16/09 MIN
APPROVED
There were no persons to address the Council.
Mgr Snow gave the manager report: ¨ The $700,000 small boat harbor funding amount had been placed in the Governor’s budget again and it was hoped that it would be approved. If not, the City would be responsible for procuring the money to submit to the Corps, whether it would be from City savings or from some other party, in whole or in part. Mgr Snow asked Council to give her direction regarding approaching CBSFA for any part of the necessary funds if the legislative funding did not come through. ¨ The electric rate analysis that had been done in the fall of 2003 was presented to the Council for discussion; in 2004, the Council had reduced electric rates by 40% based on the study, and another rate reduction could be conceivable, as well as a capital outlay for a new generator. Although the City was in a good financial position at present, the Mgr cautioned prudence, as there was still a lawsuit pending, and although TDX Power had offered to begin negotiations regarding power sales, the City would be required to incur substantial expenses. / MGR’S REPORT
Clmbr Senisch asked if there was a deadline for a decision regarding the harbor funding; Mgr Snow said guidance by the next meeting would be helpful. Clmbr Senisch said the project was too important to let go for lack of funding; Mayor Swetzof said if Council wished, they could give the Manager a response at this time. Clmbr Wagner thought it was important to start discussions with CBSFA to get their response so that the City could know what would be necessary. Clmbr Melovidov said (as a CBSFA boardmember) he thought the Manager should talk to the Management soon, but still hope for the legislative funding. Mgr Snow thanked Council for their input. She and Mayor Swetzof would be traveling to Juneau in February or March to speak to the representatives, senators and Governor Parnell regarding the request. / SBH FUNDING
Chief Meece gave his report: ¨ he urged safety during the holiday season and mentioned some precautions, ¨spoke about the new siren (which was to be erected in April, weather permitting), ¨ reported that Officer Eaton had been certified as an intoximeter operator, and Officer Blair would be attending the academy in February ¨ was still working on the fire truck grant application response, ¨ and asked for assistance in recruiting EMT volunteers. / PUBLIC SAFETY
REPORT
Mayor Swetzof gave his trip report, having just returned from the North Pacific Fishery Management Council meetings. The Emergency Relief issue (under the Crab Rationalization program) had been postponed again, much to everyone’s disappointment. There had been several attendees at the meeting hoping for resolution before the opilio season started, but final decisions were delayed. Clmbr Melovidov said “catch shares” were getting national attention, and the east coast management councils were looking to Alaska’s programs for models. / MAYOR TRIP
REPORT
A recess was held between 10:00 and 10:15 PM.
Clmbr Melovidov moved to approve Ordinance 09-05, FY 09 Budget 2nd revision, for second reading and adoption, seconded by Clmbr Senisch. FinDir Lestenkof answered questions and explained the changes that had been incorporated after the first reading. The new fuel truck had been delivered, the fuel barge had arrived, and the gas order had been filled. It was hoped that there would be another fuel delivery in January, but no confirmation had been received. Mayor Swetzof noted that the crab vessels were not happy when we had no fuel to sell; Mgr Snow remarked that fuel delivery was out of the City’s control, and not even in the control of the fuel supplier. The fuel delivery study that had been done last year did not present many options, and could not solve the problem. The State remained aware of it, but had no solutions to offer either. There was no further discussion and roll call vote was held on the ordinance: ayes – Senisch, Wagner, Jones, Melovidov, Merculief, Swetzof. (Bourdukofsky was temporarily off-line.) The motion carried unanimously. / ORD 09-05
09 BGT
2ND REVISION
2ND RDG &
ADOPTION
Clmbr Senisch moved to approve Ordinance 09-06, FY 10 Budget, for second reading and adoption, seconded by Clmbr Jones. Mgr Snow went through the revisions from the first reading, and listed some of the projects that were still unfunded, including South Dock repairs and tank farm repairs. Clmbr Merculief mentioned that several people had asked about an electric rebate for the Christmas season, but he had responded that the legal costs of the initiative and election challenges had been an unanticipated expense, and did not know what the Council would decide. There was no further discussion and roll call vote was held on the ordinance: ayes – Bourdukofsky, Wagner, Melovidov, Jones, Merculief, Senisch, Swetzof. The motion carried unanimously. / ORD 09-06
2010 BUDGET
2ND RDG &
ADOPTION
Clmbr Melovidov moved to approve Resolution 09-05, awarding holiday hours to the afternoon of Christmas Eve, 2009, seconded by Clmbr Senisch. Mayor Swetzof read the Resolution aloud for the benefit of the public and the radio broadcast. Clmbr Merculief asked if Councilmembers who were City employees should declare a conflict of interest; Mgr Snow responded that it was not a substantial financial interest, and that it had been traditionally awarded as Administrative Leave, which meant they had been receiving it already in prior years. Roll call vote was held on the motion: ayes – Jones, Senisch, Wagner, Merculief, Bourdukofsky, Melovidov, Swetzof. The motion carried unanimously. / RESO 099-05
AWARDING
HOLIDAY HOURS
FOR 12/24/09
Council reviewed the electrical rate analysis and Mgr Snow and FinDir Lestenkof answered questions. Council discussed the potential purchase of a new fuel efficient genset from electric utility funds; the installation could potentially cut fuel consumption by over 14%, and could happen soon. The grant application to the AEA was also for a fuel efficient generator, and if approved, the two gensets could provide great financial savings for customers. The new generators would allow for wind power integration if and when the City and TDX could work out the agreement details. / ELECTRICAL
RATE
ANALYSIS
DISCUSSION
Council discussed other efforts to lower costs of living: the Tribal Govt had been remodeling/upgrading homes and heating systems, which had made a big difference, the AMPY meters had helped people track their energy consumption, there would be more AMPY meters installed, and the City was pro-active regarding PCE, which was helpful to residents. PCE did not apply to businesses, and Council discussed the different rates. FinDir Lestenkof went through the different classes of customers and the rates that were currently charged each classification. She had prepared a table with different scenarios if classifications were changed. “Institutional” would include the clinic, the school, the churches. “Commercial” were all businesses, including governmental agencies (although they were not charged sales tax if applicable). / CLASSES OF ELECTRIC
CUSTOMERS
A break was held between 11: 20 and 11:30 AM.
FinDir Lestenkof went through the electric rate formula with Council, using charts and tables to show how the prices were calculated.
Clmbr Senisch spoke to the election contest, and recommended citizens speak to Chuck Wagner and Rebecca Philemonoff if they wished the lawsuit to be dropped. It was using time and money that could be better spent.
Council recessed for lunch from 12:10 to 1:17 PM. Clmbr Bourdukofsky asked to be excused for the balance of the meeting, as he had commitments in the afternoon.
Clmbr Merculief asked about the fuel saving devices that Unalaska had installed and whether or not the City should look into them. Mgr Snow had already spoken to Mike Dahl, who had been reviewing the reports, and had not found them to be as efficient as proclaimed. Mgr Snow said she would check with him again if Clmbr Merculief thought new information was available. Mayor Swetzof asked Mgr Snow if she wished direction regarding purchase of the new genset with electric revenues. She said if the Council wished, she would pursue the matter. Clmbr Merculief moved to investigate and purchase a new fuel efficient genset for the electric utility, understanding that the amount would be about $500,000, and the generator would be compatible with wind power integration if needed. The motion was seconded by Clmbr Jones. Roll call vote was held: ayes – Senisch, Wagner, Jones, Melovidov, Merculief, Swetzof. The motion carried unanimously. A budget revision would be presented when monetary amounts had been identified, and approval of the AEA proposal would be pursued. Council discussed the rate formula again; although a potential rate reduction would be accomplished if a new efficiency rate was established, FinDir Lestenkof said she would continue to monitor that to be able to recommend one as soon as possible. / COST OF LIVING
REDUCTION
EFFORTS
NEW GENSET
PURCHASE
RECMNDATION
Mayor Swetzof spoke to the St. George request for sales tax remittance of monies collected on any St. George crab quota processed on St. Paul in 2010. He said he knew it was not required, but thought it was the right thing to do. Mgr Snow said the money sent in prior years was technically a “charitable contribution”, and almost $500,000 had been sent to them since 2006; the crab rationalization costs the City had incurred also should be counted as a partial benefit to St. George as well, as they did indeed benefit from the City’s efforts. The 2010 budget that had just been adopted had all sales tax incorporated; to decide to send St. George any money would require a budget amendment reduction of approximately $112,000. The exact amount wouldn’t be known unless tracked throughout the season, and could only be requested of catchers and processors by the City of St. George and/or APICDA, as it was their quota. The floating processor to be here in the opi season (Stellar Sea) was discussed; if they went to St. George because of ice in the St. Paul harbor, St. George would be collecting tax on St. Paul quota processed over there. Council decision was to hold on any St. George tax discussion, although it was mentioned that if there was to be any decision made later when an amount could be determined, the tracking needed to begin when the season began. Clmbr Senisch moved to table the issue until FinDir Lestenkof could know the amount of tax dollars being discussed, seconded by Clmbr Jones. Roll call: Melovidov (no) Wagner (no) Senisch (yes) Jones (yes) Merculief (yes) Swetzof (yes). The issue was tabled. / SNG SALES TAX
TABLED
Clmbr Jones mentioned the food drive being sponsored by the school for food baskets for needy families at Christmas, and asked Council for assistance in spreading the information and for any personal donations they may wish to make. / FOOD DRIVE
Travel and meeting schedules were discussed. The International Pacific Halibut Commission meetings were scheduled for January 26 through 29; Clmbr Melovidov would be attending those. Mayor Swetzof was scheduled to attend North Pacific Fishery Management Council meetings February 8 through 17. The next meeting was set for January 20, 2010, at 1:30 PM. / TRAVEL PLANS
NEXT MEETING
Clmbr Merculief moved to adjourn the meeting, seconded by Clmbr Melovidov. The motion carried by voice vote and the meeting was adjourned at 2:10 PM. / MOTION TO ADJOURN/ ADJOURNMENT
SUBMITTED BY: / APPROVED:
______/ ______
Phyllis Swetzof, City Clerk / Date

Corrected 2/12/10 per CCL meeting held 2/11/10.