Valdez City Council Regular Meeting – August 19, 2025
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Valdez City Council Regular Meeting – August 19, 2025
The Valdez City Council met in regular session at 7:00 PM on August 19, 2025. The meeting included the swearing‑in of newly appointed Councilmember Lester Green (to serve until the May 2026 municipal election), unanimous approval of a seven‑item consent agenda, three new business items, three resolutions, and multiple staff reports. Key actions included approval of revised child care grant programs, acceptance of the 2024 financial audit (clean opinion with no findings), discussion of a proposed purchase for snow storage, renaming the container terminal in honor of Ryan J. Sontag, and adoption of the 2026 budget priorities with a 6‑1 vote.
Consent Calendar
- Appointments to the Valdez Consortium Library Board: Carl Oberg and Michael “Jay” Stevens.
- Acceptance of resignation of Library Board member Sadie Blancaflor.
- Liquor license renewals: BPO Elks Lodge #2537, Valdez Food Cache #5612, Growler Bay Brewing Company #5634, and Nat Shack #5932. (Councilmember Fleming disclosed his role as treasurer of Elks Lodge #2537 but stated no conflict; council concurred.)
- Marijuana dispensary license renewal: Herbal Outfitters LLC #10173.
- All consent items approved by a vote of 7‑0.
Public Comments & Testimony
- No members of the public addressed the council during the “Public Business from the Floor” period.
- On the snow storage discussion item, Director Whitty presented operational details; no public testimony was given.
Discussion Items
- Revised Child Care Start‑up and Operating Grant Programs / INNOVATION Grant Expense Categories
- Staff explained that approximately $500,000 in grant funds remain, with $200,000 allocated for furniture, fixture, and equipment assistance through Head Start. Existing local grantees will be prioritized.
- Councilmember Love expressed appreciation for creative use of funds.
- Motion to approve passed 7‑0.
- Approval of the 2024 Financial Audit
- City Manager reported another clean audit with no findings. Councilmembers commended the finance department and Altman Rogers.
- Motion to approve passed 7‑0.
- Discussion: Purchase of Lot 3, Tract K – Mineral Creek Industrial Park for Dedicated Snow Storage (no formal vote)
- Directors explained that new developments on West Egan have reduced snow storage capacity; the city faces a critical 1,000‑foot section with no dedicated storage. The 1.5‑acre parcel (appraised at ~$385,000) would be cheaper than purchasing new equipment and hiring additional staff.
- Councilmembers asked about funding sources (likely Land Development Fund reserves) and code implications.
- A resolution authorizing negotiation of a purchase agreement is expected at the next regular meeting.
Resolutions
- #25‑34 – Amending the 2025 City Budget: Transfer $4,500,000 of 2022 General Obligation Bond proceeds to the Municipal Well #5 project.
- Motion to approve passed 7‑0.
- #25‑35 – Renaming the Valdez Container Terminal as the “Ryan J. Sontag Valdez Container Terminal”
- Councilmembers shared remarks honoring Sontag’s lifelong service. Discussion on the full name (including “Valdez”) for commercial clarity.
- Motion to approve passed 7‑0.
- #25‑36 – Establishing Council Priorities for the 2026 Operating Budget
- An amendment was proposed to change “minimize utilization” to “discontinue utilization” regarding the 1.5% Permanent Fund draw. After debate about charter language, the amendment was adopted 6‑1 (Councilmember Lally dissenting).
- The main resolution, as amended, passed 6‑1 (Councilmember Lally dissenting).
Reports
- Monthly Treasury Reports (May and June 2025) – Accepted without discussion.
- 2025 ADEC Solid Waste Program Inspection – City of Valdez Landfills – Received a 98% rating; council praised the solid waste crew.
- Temporary Land Use Permit #25‑09 (Granite Construction) – Noted.
- Monthly Projects Update (Verbal)
- Key milestones: Sewer force‑main bypass connections complete; Mill Hill trail 90% done (grand opening September 11); Pioneer Drive phase 3 paving finished (street to open before school August 26); Library window replacement (substantial completion August 31); Scrap barge processed ~850 of estimated 1,400 tons; Well house #5 out to bid; School contaminated soil investigation ongoing.
- Councilmember questioned scrap volumes; staff confirmed quantities are meeting expectations and a Phase 2 may involve partnering with neighboring communities.
- City Manager Report
- Reeve Air (operated by Kenai Aviation) now selling tickets with three daily flights to Anchorage from the international terminal; Fairbanks route expected in October.
- Puppy adoption event (“Puppy Party on PAW”) Tuesday, 1‑3 PM at the shelter; adoption fee $5.
- Upcoming: Housing subcommittee meeting Thursday, and quarterly check‑in with subcommittee.
- Met with Coast Guard and congressional staff in Anchorage; November D.C. trip planned to advocate for Coast Guard presence.
- City Clerk Report
- Announced new electronic voting system (pilot testing soon).
- Reminded council to register early for the Alaska Municipal League conference (December 8‑12) and that hotel blocks are open.
- City Attorney Report
- Escape Property Trial: Prevailed on the main issue – five tugs deemed taxable, yielding approximately $4.5 million additional annual revenue. Appeal expected to the Alaska Supreme Court.
- VMTC Plan: New hydraulic secondary containment inspection method proposed by Alyeska; city reviewing.
- BMC 3.30 Issues: Board of Equalization hearing stayed pending appeal; ordinance clarifying direct appeal rights passed.
- Wrongful Termination Complaint (Abels): Insurance carrier assigned trial counsel; settlement discussions pending.
- Executive session scheduled tomorrow (August 20) at noon to discuss legal implications and settlement matters.
- Mayor’s Report
- Attended Coast Guard fundraiser, ATC banquet (fast‑charging station discussed), and toured Copper Valley Electric’s facility.
- Hosted Senator Murkowski’s staff for a site visit.
Key Outcomes
- Consent Agenda: Approved 7‑0.
- Revised Child Care Grants: Approved 7‑0.
- 2024 Financial Audit: Approved 7‑0.
- Snow Storage Discussion: No vote taken; resolution authorizing negotiations to be placed on next agenda.
- Resolution #25‑34 (Budget Amendment): Approved 7‑0.
- Resolution #25‑35 (Container Terminal Renaming): Approved 7‑0.
- Resolution #25‑36 (Budget Priorities): Approved 6‑1 (Councilmember Lally opposed).
- All reports accepted as presented.
Meeting Transcript
Call the meeting to order Valdece City Council at seven o'clock. Uh please uh all stand for Pledge of Allegiance. Aye. Pledge of allegiance to the flag of the United States of America. One nation under God. Indivisible with liberty and justice for all the okay. Can we get a roll call? Thank you, Mr. Mayor. Um, all members of council are present. Uh Councilmember Foster is attending online, and we have one vacancy that will be filled here very shortly. Right on. Okay, uh, we're gonna be uh swearing in uh city council appointee. The city council voted at our last regular meeting to appoint Lester Green to fill the vacancy on council. So he'll serve through our next municipal election on May of 2026. Congratulations, Lester. So if you would come on up, and the city clerk will uh swear you in a right comment for your name. Hi, Lester Green. Do you follow me? Always important defend. Constitution of the United States of America. The Constitution of the Alaska. And I will faithfully discharged my duties. And I will faith my duty as the council member. As the city council member. But the ULD is the last city of LDC. Congratulations. Thank you. All right, now take the hot seat, Lester. Okay, we'll do uh public business from the floor. This is the time for members of the public to address council on non-agenda items. Is there any public business from the floor on non-agenda items? Okay, seeing none, we'll go into the consent agenda. There are seven items on the consent agenda this evening. Please stop me if you want to discuss any of these items. Appointments to the Valdez Consortium Library Board applicants, Carl Wilberg and Michael J. Stevens. Acceptance of resignation of library board member Sadie Blank import. Um approval of liquor license renewal 369 BDO Elk Slodge number 2537. Mayor uh Flamin. I'd like to just state for the record that I am an officer, a treasurer of Valdez Elk's Lodge number 2537, and I'm on the board of directors, and my name is on that application as a board of director. Okay. So you'll just ask if you think a conflict exists. Do you think there's a conflict of interest that exists? I do not. It's a volunteer organization, and there's uh multiple members on that board. Okay. Do I have consensus from council? Okay. All right.
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