HomeMy WebLinkAbout1989 City Council Minutes
242
PAGE 242
SPECIAL MEETING - DECl'MBER 15, 1988
VOLUME 23
None
IX. ADJOURNMENI':
The meeting was adjourned at 1:19 p.m.
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Harry . Giese er
Mayor
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PAGE 242
REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
1. CAll. TO ORDER:
The January 9, 1989, regular IIEeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember Meehan led the pledge of allegiance to
the flag.
IlL ROLL CALL:
Present were: Mayor Gieseler and Councilmerrbers Hil-
ton, Meehan, Noll, O'Brien and Simutis
(Dunham was excused)
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Port Marketing Director Gates, Engi-
neering & Utilities Manager Diener,
Parks & Recreation Director Yanez,
Interim Finance Director Gifford,
Administrative Assistant Martin, Police
Chief Bencardino and City Clerk Murphy
IV. APPROVAL OF MINUIES:
HILTON MOVED TO APPROVE THE DECEMBER 12 AND 15, 1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND
CARRIED UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
SIMUTIS M)VED TO MEET IN EXECUTIVE SESSION IMMEDIATELY
FULLOWING TIlE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS THE
CITY t-1ANAGER'S PERFORMANCE; TIlE mTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
Royle stated that Spring Creek Correctional Center
Superintendent Frank Sauser would address the Council following
Sewall's Borough Assembly Report. He also noted that Arvidson
had prepared substitute resolutions for proposed Resolutions No.
89-003 and 89-004.
MEEHAN MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
AMENDED; TIlE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the January 3, 1989, Assembly
meeting.
SPECIAL ITEM:
A. Frank Sauser, Superintendent of the Spring Creek
Correctional Center, introduced himself to the Council. He
stated that he had met with the Mayor's committee and appreci-
ated the concern for better relations between the city and the
prison which had been expressed. O'Brien stated that he, too,
had attended the committee meeting chaired by Dunham and had
found it to be beneficial to everyone who attended. Gieseler
thanked Sauser for taking time to attend the Council meeting and
welcomed him to the conmmity.
VII. CITIZENS' CCM1ENI'S ON AGENDA ITENS NOT SCHEDUlED FOR
PUBLIC HEARING:
HERMAN lEIRER, 101 Leirer Drive, stated that he was
opposed to the Chamber's plan to rrove the Information Cache to
the Boat Harbor. He stated that the Cache should stay close to
the Museum and suggested that the Chamber consider purchasing or
leasing property directly across the street from the existing
site for parking. Leirer stated that the Boat Harbor property
should be reserved for marine services.
DONNA KCMALSKI, 601 Third Avenue, stated that she
shared Leirer's concern. She noted that she had obtained four
hundred and seventy (470) signatures on a petition opposed to
rroving the Chamber Office and Infonnation Cache. Kowalski
stated that she was concerned for the survival of the downtown
area and noted that the city could not afford to lose any more
businesses to the Small Boat Harbor.
( C5E154987 )
244
FINANCE/RESO:
ACCTS.PAYABLE:
LEASES:
CON- ~l:
CON -:2 <-7):
PAGE 244
REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
BRAD ~EN, 525 Sixth Avenue, stated that if the
Chamber wanted to rrove the Information Cache, it should consider
placing it adjacent to the Old Railroad Depot. He suggested
that the Chamber take another vote on the proposed rrove using a
mail-in ballot. Snowden also noted that he objected to the city
charging a higher lease rate for Boardwalk leases than for other
Boat Harbor leases.
WILLIAM WHEELER, Site 4, Small Boat Harbor Boardwalk
Lease Sites, stated that he was opposed to Administrative
Assistant Martin's recommendation that the Boardwalk lease rates
remain the SanE and urged the Council to lower the rates.
ANNE CASTEILINA noted that she would defer her com-
ments until later in the meeting.
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUTIS M)VED TO APPROVE TIlE CONSENT CALENDAR AS
PRESENTED; TIlE MarION ~.JAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY. The following actions were taken:
1. Resolution No. 89-001, authorizing signatures for
the city bank accormt and rescinding all previous resolutions in
conflict therewith, was approved;
2. December 14, 1988, Finance Department's list of
Accounts Payable totalling $1,349,686.29, was approved for
payIIEnt;
3. January 5, 1989, IIErrorandum from Diener request-
ing Council authorization for the City Manager to negotiate a
lease and royalty contract with Afognak Logging for a rock
quarry on city-owned property was approved;
4. Change Order No. 2 to the contract with Esther
Werner for acquisition of a Senior/Corrmmity Center, increasing
the contract price by $1,231 to provide and install floodlights
on the back of the building for parking lot lighting, was
approved;
5.
contract for
approved:
Change Orders to the Construction Rigging, Inc.,
SMIC North Dock Construction, as follows, were
112 - Substituting dredging not required for this phase
of the project for driving piles for the light base and
ballasts and changing material in the bay ramp, with no
change in the contract price; and
#3 - Providing payment to rrove gravel on site in
excesS-of amJunt stated on drawing, increasing the contract
price by $4,981.57;
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
?,AS
6. ABCB notification of applications for renewal of ABCB:
liquor licenses as filed by SEWARD TRADING COMPANY & LIQUOR
STORE, NIKO' S NIGHT CLUB, and PEKING CHINESE RESTAURANT, was
filed without objection;
7. Applications for permits for games of chance and
skill as filed by }IT. MARAlliON NATIVE ASSOCIATION, SEWARD
CIW1BER OF COMMERCE, AMERICAN lEGION AUXILIARY, AMERICAN lEGION
POST m. 5, SEWARD SENIORS, and SEWARD JR./SR. HIGH SCHOOL, were
noted for information;
8.
ing plans for
information;
January 5, 1989, IIErrorandun from Martin concern-
the Army/Air Force Recreation Camps, was noted for
9. December 19, 1988, IIEmOrandun from Diener con-
cerning Building Permit Activity for Cl 1988, was noted for
information;
10. January 3, 1989, IIErrorandun from Diener concern-
ing the status of the city's efforts to obtain funding for the
T-Line project, was noted for information; and
11. December 23 , 1988 , merrorandun from Diener re-
questing authorization to award a contract to Marathon Fuel
Corporation for the purchase of petroleum products, was ap-
proved.
IX. PUBLIC HEARINGS:
None
X. PRESENTATIONS WIlli PRIOR mTICE ONLY:
PERMITS/GAMES OF
SKILL & CHANCE:
PURCHASING:
A. JOHN GIILESPIE, 604 Fifth Avenue, and KENT
BERKLUND, Lot 10, Block 4, Meridian Park Subdivision (Bear
Lake), addressed the Council concerning the Borough's plans to
select a new landfill site. Gillespie stated that he realized
that landfill is a borough responsibility, but wanted the
Council's support for his concerns about the two potential sites
selected by the Borough. Berklund stated that he represented
residents of Exit Glacier Road and Meridian Park Subdivision.
He stated that these areas were primarily residential and
recreational in nature and were not the ideal spots for a large
landfill. Berklund contended that placing the landfill in
either area would lower property values, cause traffic safety
problems, and could possibly contaminate drinking water. He
read into the record a letter from Nancy Erickson objecting to
locating the landfill in the Bear Lake area. He also noted that
he had in hand a petition containing six hundred twenty-eight
signatures of those opposing locating a landfill in either of
the two proposed sites. Gillespie asked the Council to consider
approving a resolution urging the Borough to conduct an in depth
study of landfill site options including upgrading the existing
( CSEl54989 ]
CIT. DISC:
246
CIT. DISC:
CIT. DISC:
(Audit)
CIT. DISC.:
CIT. DISC:
SMIC/PURCHASING/
RESO:
PAGE 246
REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
facility, researching al ternati ve disposal IIEthods and looking
at other potential sites. GIESELER INSTRUCTED TIlE ClERK TO
PREPARE SUCH A RESOLUfION FOR PRESENTATION TO ruE COUNCIl" AT 'IRE
NEXT MEETING.
B. lEE D. GORDANIER, 218 Marathon Drive, objected to
Administrative Assistant ' s recarrmendation to the Council that
Boardwalk lease rates remain unchanged. He suggested that the
lease rates be lowered to $0.40 per square foot.
C. RICK GIFFORD, Interim City Finance Director,
presented the FY 1988 audit. (Anne Hippe, Price Waterhouse
Representative, was unable to attend the IIEeting.)
D. TCl1 STAUDENMEIER filed with the Clerk applica-
tions for petitions to recall Mayor Gieseler and Councilmembers
Hilton, Meehan and O'Brien. He added that he was prepared to
present applications to recall the three counci1members who were
re-elected in October as soon as they had been in office the
required one hnndred twenty (120) days.
E. KEVIN O'CONNOR, 521 Sixth Avenue (President of
the Chamber of Carrmerce), and ANDY PATAPOFF, Mile 3, Resur-
rection Road, asked the Council to authorize the City Manager to
proceed with lease negotiations with the Chamber for lease of a
parcel of land to house the Chamber offices and the Information
Cache. O'Connor noted that a vote of the Chamber membership had
indicated that eighty-seven percent (87%) of those voting
favored rroving both the Cache and Office; of those who wanted to
relocate, more than fifty percent (+50%) favored rroving to the
Small Boat Harbor. 0' Connor stated that mmy visitors come to
town to use the Harbor facilities and some are not even aware
that there is a downtown area. He added that a Chamber Office
in the Harbor could direct those visitors to the downtown area.
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and EnactIIEnt:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUfION OF TIlE CITY OOUNCIL OF lliE CITY
OF SEWARD, ALASKA, FINDING IT IN ruE PUBLIC
INTEREST TO REJECT 'IRE SOlE BID SUPMITTED
(CSE154'}<JO )
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
FOR TIlE PURCHASE OF A GRINDER TROUGH FOR TIlE
SMIC LIFT STATION AND AUTIIORIZING TIlE
FABRICATION OF TIlE GRINDER TROUGH BY TIlE
CITY SHOP.
HILTON M)VED TO APPROVE RESOLUTION m. 89-002; TIlE
mrION WAS SECONDED BY SIMUTIS AND CARRIED UNANlM)USLY.
2. Copies having been made available to the PURCHASING/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, AUTIIORIZING ISSUANCE OF A
NarlCE OF INTENT TO AWARD A CONTRACT FOR TIlE
PURCHASE OF CERTAIN VEHICLES.
SIMUTIS MJVED TO APPROVE RESOLUTION m. 89-003 (SUB-
STITUI'E); THE MarION WAS SECONDED BY MEEHAN AND CARRIED UNANI-
MOUSLY. (Arvidson noted that the title had been changed to
reflect that the authorization was not to "purchase" but to
award a "notice of intent to purchase" contingent upon obtaining
financing. )
3. Copies having been made available to the PURCHASING/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, AUTIIORIZING ISSUANCE OF A
NarlCE OF INTENT TO AWARD A CONTRACT FOR TIlE
PURCHASE OF CERTAIN EQUIPMENT.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-004 (SUBSTI-
TUI'E); TIlE MarION WAS SECONDED BY HILTON AND CARRIED UNANlM)US-
LY.
RECESS: The meeting was recessed at 8:50 p.m. and reconvened at
9:00 p.m.
XI1. UNFINISHED BUSINESS:
A. MEEHAN M)VED TO ACCEPT TIlE RECll1MENDATIONS SET
FORlR IN KERRY MARTIN'S DECEMBER 7, 1988, MEl-DRANDUM. LEAVING
SMAIL BOAT HARBOR LEASE RATES UNCHANGED; TIlE MarION WAS SECONDED
BY mll..
LEASES/BOARDWALK:
Martin briefly reviewed the process which had been
used in determining lease rates for the Boardwalk sites in the
Small Boat Harbor. He noted that he had ordered an appraisal of
the entire Boat Harbor area, including the Boardwalk sites, in
response to Council's instructions several rronths earlier. This
appraisal had indicated that the Boardwalk lease rates were fair
in that the city and the lessees had set the market in this
( CSE 154991 1
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
area. In addition, based on the response to the city's initial
RFP for Boardwalk leases, the rates would probably have been
higher had the sites been "bid".
Hilton concurred, adding that $1500 per year did not
seem to be an exorbitant rate for the lease of a site right on
the water in the Small Boat Harbor. He stated that he favored
the administration's recorrrnendation that rates remain the SanE.
Noll stated that he was s~athetic with those who
claimed financial duress and added that he favored a reduction
in lease rates.
O'Brien stated that while the $1500 annual lease rate
was a demonstrated worth, there was an obvious inequity in rates
in the Harbor. He stated that he favored something "in the
middle". Meehan agreed with O'Brien.
Martin noted that the lease rates for Boardwalk sites
were set for the entire ten-year tenn of the lease and were not
adjustable every five years as with other leases.
MEEHAN WIlliDREW HIS mTION; NOll. CONCURRED.
0' BRIEN M)VED TO DIRECT TIlE ADMINISTRATION TO OFFER
TIlE BOARIMALK lESSEES A REDUCTION IN IEASE RATES TO ONE DOllAR
($1.00) PER SQUARE FOOT IN EXCHANGE FOR A lEASE AMENr.t1ENT
REQUIRING mAT TIlE lEASES COME INl'O TIlE CI'lY'S FIVE-YEAR AP-
PRAISAL PLAN; TIlE MarION WAS SECONDED BY MEEHAN AND CARRIED WIlli
FIVE "YES" VarES AND Sll1UTIS ABSTAINING. (Gieseler ruled that
Simutis' interest in Ray's Waterfront Restaurant, located on
leased property owned by the city, constituted a conflict of
interest.)
LEASES: (C of C) B. HILTON M)VED TO DIRECT TIlE ADMINISTRATION TO
PROCEED WIlli LEASE NEGal'IATIONS WITH THE CHAMBER OF CXl1MERCE;
TIlE mTION WAS SECONDED BY SIMUTIS.
Meehan stated that he would abstain from discussion or
vote on this issue since he currently leases office space to the
Chamber.
Sirrnltis stated that she had been an early supporter of
the proposed relocation of Chamber Office and Information Cache;
however, since that time, she had developed quite a few reser-
vations about it. She noted that thirty-three votes did not
seem adequate to represent the membership of the Charrber. She
also noted that maintenance of the downtown core is a primary
goal of the city and questioned how this rrove might affect
downtown. Simutis suggested that the Chamber develop kiosks
with videos in the Small Boat Harbor to alert visitors to what
is offered downtown.
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
O'Brien stated that this was not merely a "Chamber"
issue. He stated that the city was considering the lease of a
city asset, and the people had a right to speak to this issue.
Hilton stated that he could see the advantages to
rroving the Cache to the Boat Harbor, but he was concerned about
the effect of another intersection in this already busy area, as
well as the effect this might have on limited parking available
in the Boat Harbor.
Noll stated that he favored leaving the Cache in its
current location for at least one season to see if the Museum's
rrove to a site directly across from the Cache might make a
difference in the number of visitors it attracts. He suggested
that the Chamber invest in better signage which would be attrac-
tive to tourists, adding that Council might be able to support
fun.ding for some of the signs.
Gieseler stated that, in his opinion, the People had
spoken through the petition opposing the rrove. He noted that he
could not support relocation at this time.
TIlE QUESTION WAS CAlLED AND TIlE mTION FAILED WITH
FIVE "NO" VOTES AND MEEHAN ABSTAINING.
XIII.
NEW BUSINESS:
A. 0' BRIEN MOVED TO FORMAILY ACCEPT TIlE FISCAL YEAR
1988 CITY AUDIT; TIlE MarION WAS SECONDED BY NOLL AND CARRIED
UNANll10USLY.
B. MEEHAN M)VED TO APPROVE A ClAIM FOR DAMAGES
TOTAlLING $228 AS FILED BY KARL H. ROSENKRANZ; THE MarION WAS
SECONDED BY HILTON AND FAIlED WIlli ALL PRESENT VOTING "NO".
C. GIESElER MOVED TO APPROVE A ClAIM FOR DAMAGES
TarALLING $250 AS FILED BY ANDRIA J. WALDEN; THE mTION WAS
SECONDED BY mll. AND FAILED WIlli All. PRESENT VOTING "NO".
D. GIESELER M)VED TO APPROVE A ClAIM FOR DAMAGES
TOTAlLING $220 AS FILED BY LOUIS E. DICK; TIlE MarION WAS SECOND-
ED BY mll..
In response to a question from Meehan, Diener stated
that the short which caused damage to Dick's television was
caused by slippage of a secondary support grip due, probably, to
the age and condition of the line; however, this was not caused
by negligence on the part of the city and was, therefore, not
the responsibility of the city.
O'Brien stated that he felt there was quite a differ-
ence between an areawide failure and an individual service line
failure, adding that the city had a responsibility to provide
reliable power to the custaner. Noll concurred.
249
AUDIT:
CLAIMS FOR DAMAGES
(Rosenkranz clm- I
DENIED)
CLAIMS FOR DAM:
(Walden claim -
DENIED)
CLAIMS FOR DAM:
(Dick Claim AP-
PROVED)
( C SE 154993 1
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
TIlE QUESTION WAS CAlLED AND TIlE MOTION CARRIED WITH
FOUR "YES" VOTES AND GIESELER AND HILTON VOTING "NO".
PURCHASING/FINANCE: E. NOll. MOVED TO AUIHORIZE THE CITY MANAGER TO
REQUEST FINANCING PROPOSALS TO PURCHASE CERTAIN CITY EQUIPMENT
AND VEHICLES AS IDTED IN GIFFORD'S JANUARY 5, 1989, MEMORANDlM;
TIlE MarION WAS SECONDED BY SIMUTIS AND CARRIED UNANlM)USLY.
XIV. CITY MANAGER REPORTS:
ROYlE requested a work session to discuss the upcoming
trip to Korea. He also reminded Council that Schaefermeyer had
provided each member with a IIEIIDrandum regarding labor nego-
tiations; he stated that the administration would be happy to
discuss upcoming negotiations in an executive session if Council
so desired.
Royle noted that Arvidson had developed a contract
which had been forwarded to Timeline to assure that the city was
well protected prior to purchasing Timeline' s software package.
He also invited Council to join Diener for a ''walk-thru'' of the
Senior Center at 1:30 p.m. on Tuesday.
GATES distributed his latest project status report and
a copy of a proposal which had been received from Dragnet
Fisheries to lease property at SMIC. 0' Brien asked what effect
Dragnet's proposal would have on existing industry such as
Icicle, Anderson, etc. He also noted that it was important that
Dragnet be treated exactly as Inlet Fisheries was treated.
Gates briefly reviewed several projects listed on his
status report. He noted that he was starting to negotiate with
the Alaska Railroad regarding the transfer of the Coal Dock to
the city. O'Brien reminded Gates that an earlier work session
had revealed this to be a fairly complicated issue and he warned
Gates that another work session would be needed before the city
becanE too deeply involved in negotiations.
Gieseler asked Gates to investigate a complaint he had
received from local residents concerning hiring practices at
Chugach Forest Products.
XV. COUNCIL DISCUSSION:
mll. stated that Senator Murkowski has forwarded the
city's resolution urging the state to offer itself as a site for
a "Conference for Peace in Southeast Asia" to the South Korean
Ambassador. He noted that Bob Poe (Director of Governor's
Office of International Trade) would be addressing the Trade
Board on Tuesday.
SIMUTIS stated that Hyett Palma had visited Seward in
December. She added that the Seward Enhancement Association
Board was still a strong group with a strong sense of direction.
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REGULAR MEETING - JM-TIJARY 9, 1989
VOLUME 23
HILTON stated that the Seward Conmmity Hospital Board
had agreed to a contract with Wesleyan Nursing Home wherein
Seward General Hospital would provide mmagement services to
\oJesleyan for three rronths while Wesleyan continues to search for
a new administrator.
MEEHAN apologized to the Charrber for his corrments
concerning the proposed relocation. He stated that it did not
occur to him until after his corrnents that he would have a
conflict of interest because of his role as lessor of the
Chamber business office. Meehan also asked the administration
to look into the possibility of providing lighting at the
ballfield for night-tinE ice skating. He noted that the letter
from Spectrum Network had caught his attention and he asked the
administration to respond to it. (Noll stated that he had
passed a copy of this letter along to the IMS Director.)
GIESELER asked Theodore White to recap the grounds for
recall as set forth in his application for petitions. WHITE
stated that the primary reason for the application was electric
rates. In response to Gieseler's question concerning replace-
ments for the Mayor and Council should the recall effort prove
successful, White stated that he was leaving that to his Legal
Advisor Louie R. March, Jr.
GIESELER noted the Polar Bear Jump was scheduled for
January 21. He stated that he would be attending the Alaska
Conference of Mayors IIEetings January 12-13. He noted that he
\oJOUld deliver his annual "State of the City" address on January
7.3, 1989, just prior to the Council IIEeting. Gieseler stated
that the flyer explaining the charges on the city electric bills
\'Jas currently being printed and would be made available to all
electric utility customers soon. Finally, Gieseler noted the
passing of Albert Kawabe and stated that he would be missed by
the corrmunity.
XVI. CITIZENS' DISCUSSION:
ANNE CASTELLlNA, 2508 Cedar Street, representing the
Kenai Fjords National Park, stated that the Park Service sup-
ports more planning before a decision is made concerning future
landfill sites. She urged the Council to remember its resolu-
tion supporting Kenai Fjords National Park. She stated that she
would hate to see a hasty decision concerning the landfill
jeopardize any part of the conmmity, including Exit Glacier
Recreation Area.
MARILYN REYNOLDS, 225 Sixth Avenue, Polar Bear Jump
Chairman, stated that the Seattle Center was conducting a
US/Canadian/Russian Expo in May and suggested that the city
consider taking part.
NEIL CAMERON, 525 Third Avenue, stated that the
Chamber had notified its members prior to the vote on the
( CSE154995 1
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REGULAR MEETING - JANUARY 9, 1989
VOLUME 23
proposed relocation of its offices and the Cache, and each mem-
ber had the opportunity of voting in person or sending a proxy
to the meeting; therefore, the number of rrembers voting should
not have been a concern. He stated that the majority of those
voting wanted to rrove the offices and the Cache, and he wanted
those people who voted to know that their votes did count.
KENl' BERKLUND, Meridian Park Subdivision, noted that
the petition he had IIEntioned in his earlier presentation had
been put together initially by Meridian Park residents and had
not (at first) contained any reference to Exit Glacier Road.
EDGAR BLATCHFORD, 504 Fourth Avenue, stated that he
had been a Director of Chugach Alaska Corporation, Inc., since
1976. He stated that only two members of one Director's family
had been hired to work on the Chugach development. He stated
that hiring was the responsibility of the manager of the sawnill
and was not influenced by the Board of Directors.
JONAlliAN SEWAlL, 2403 Diarrond Blvd., stated that he
was concerned that both parking and traffic would becane a
problem at the new Senior/Conmmity Center.
JOANNIE BEHRENDS, Meridian Park Subdivision, asked if
the Council intended to respond to Berklund' s earlier request
regarding the landfill issue. Gieseler stated that the Clerk
would prepare a resolution as requested by Berklund and Gilles-
pie earlier in the IIEeting, and the Council would consider the
resolution at its next meeting.
JONAlliAN SEWAlL, KPB Assembly President, stated that
he did not believe that the landfill selection process has been
narrowed to just two sites; however, these are the only two
sites owned by the Borough which are large enough and close
enough to Seward to be feasible. He noted that when the Borough
conducted a public hearing in Seward prior to making any site
selections, only two residents of the area had attended, and one
of those attending was the operator of the landfill.
XVI1.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CCM1ENTS:
GIESELER stated that the Council would be looking at
electric rates both inside and outside the city limits.
XVII 1.
ADJOURNMENT :
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The meeting was adjourned at 10:55 p.m. and, after a
short recess, the Council reconvened in Executive Session to
discuss the City Manager's perfonnance.
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REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
1. CAll. TO ORDER:
The January 23,
Citv Council was called to
Gieseler.
1989, regular IIEeting of the Seward
order at 7:55 p.m. by Mayor Harry E.
II. OPENING CEREMONY:
Counci1member Noll led the pledge of allegiance to the
flag.
III. ROLL CAlL:
Present were: Mayor Gieseler and Counci,1members Mee-
hall, Noll, O'Brien and Simutis (Dunham
and Hilton were excused)
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Engineering & Utilities Manager Diener,
Hospital Administrator Campbell,
Administrative Assistant Martin,
Interim Finance Director Gifford, Fire
Chief Gage, and City Clerk Murphy
SPECIAL ITEM:
Gieseler presented a plaque and check to City Clerk
Linda Murphy in recognition of her acceptance into the lIMe
Academy for Advanced Education.
IV. APPROVAL OF MINUTES:
Not available.
V. APPROVAL OF REGULAR MEETING AGENDA:
Royle requested the addition of New Business Item No.
"A" - Purchase of a transformer for the Anderson Dock.
SIMUI'IS MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
AMENDED; THE MmION WAS SECONDED BY NOll. AND CARRIED UNANIMOUS-
LY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the January 17, 1989, Assembly
IIEeting. He noted that the Borough would conduct a public
hearing on solid waste disposal in Seward at 7:00 p.m. on
February 8, 1989, in the Council Chanbers. He urged those
interested in this issue to attend.
t?,
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REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
RUlli DECAMP, 1075 Snawhill Road, Wasilla, representing
the State Ombudsman's Office, explained the services offered by
her office and distributed some informational material to the
CmIDcil.
VIII.
APPROVAL OF CONSENf CALENDAR:
O'Brien asked that Consent Calendar item No. "6" be
rroved to the Regular Meeting Agenda as New Business Item No.
"B".
AMENDED ;
MOUSLY.
SIMUTIS M)VED TO APPROVE THE CONSENT CALENDAR AS
THE MarION WAS SECONDED BY MEEHAN AND CARRIED UNANI-
The following actions were taken:
KPB
(Landfill) /RESO: 1. Resolution No. 89-005, requesting an in-depth
study of potential landfill sites by the Kenai Peninsula Bor-
ough, was approved;
DEEDS/LIBRARY/
RESO:
INSURANCE/CON-
3\D/RESO:
ABCB:
ABCB:
CON-\ <6lp:
ROW VACATIONS/
CLIFF ADD:
2. Resolution No. 89-006, approving acquisition by
deeds of property for the Seward Conmmity Library, was ap-
proved;
3. Resolution No. 89-007, accepting amendnents to
the Bylaws of the Alaska Mtmicipal League Joint Insurance
Association, was approved;
4. ABCB notification of application for restaurant
designation as filed by the HARBOR DINNER CLUB was approved;
5. ABCB notification of application for liquor
license renewal as filed by THORN'S SH<J,.JCASE LOUNGE was filed
without objection;
6. Moved to Regular Meeting Agenda;
7. Amendnent No. 1 to the Rivers Towing Service
Agreement redefining the reporting requirements and specifying
that Contractor's fee for city-requested towing shall be no
greater than that charged for private towing, was approved;
8. January 17, 1989, merrorandum from Kerry Martin
requesting Council approval of the vacation of the South forty
feet of Mill Street adjacent to Block 13, Cliff Addition,
subject to the following conditions, was approved:
1. That part of Government Road lying within Block
13 and the Mill Street ROW be dedicated as public ROW on
the final plat;
2. That the final platted lot be a conforming single
family residential (Rl) building lot in terms of buildable
area and lot width; and
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REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
3. That a drainage/utility easement be included on
the plat to cover the surface water drainage from Mill
Street discharges into the Lagoon and the electric
line/street light located in that vicinity;
9. January 18 , 1989 , letter agreement for legal C . A TTY / CON - 320:
services submitted by Fred Arvidson was approved;
10. January 9, 1989, Finance DepartIIEnt's list of ACCTS. PAYABLE:
Accounts Payable totalling $1,155,844.98, was noted for informa-
tion;
11. January 16, 1989, Finance DepartIIEnt's list of ACCTS. PAYABLE:
Accounts Payable totalling $857,460.26, was noted for inform-
tion; and
12. January 18, 1989, merrorandurn from Martin concern-
ing proposed amendments to the Boardwalk Site Leases was noted
for information.
IX. PUBLIC HFARINGS:
A. BOARD OF ADJUS'IMENI' HEARING - SEWARD ASSOCIATES -
Arvidson noted that the hearing had been cancelled at the
request of the appellant, Mr. Frank Irick. However, since one
of the principals, Harty Franz, had travelled from Idaho for the
meeting, he had requested an opportunity to address the Council
at this time.
BOARD OF ADJMT
HRG: (Irick P.p-
peal)
HARTY FRANZ, N. 12425 Gem Shore Road, Hayden Lake,
Idaho, and Irick's attorney, HICHEILE MImR, asked that Franz's
remarks be made a part of the Appeal Board's record. Franz
noted that he was the developer who proposed to construct the
24-unit apartIIEnt complex on Irick's Jesse Lee Heights property.
He stated that the Federal Goverrnnent had identified Seward as
an area in need of subsidized housing. He noted that he could
have constructed four plexes on the property without benefit of
any special permits from the city, but had opted to build three
eight-plexes instead so that savings could be used to landscape
and beautify the development.
Franz stated that his development would add approxi-
mately $1 Million to Seward's tax base. In addition, he assert-
ed that his development would IIEet a need which was not ad-
dressed by private landlords, Le. the need for low income
housing. Quoting from Industry Mar,azine's April 1988 issue,
Franz stated that the era of private y owned and financed rental
property was coming to an end and that government subsidized
developIIEnts were the wave of the future. He stated that those
in the medium to low income range were being forced to pay an
ever larger percentage of their incomes for rent, and the only
way mmy could afford housing was through a goverrnnent sub-
sidized program. Franz also indicated that it would be possible
for those owning conventionally financed rental units in Seward
[.
PUBLIC HEARINGS:
(Ambulance
Grant)
PAGE 4
REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
to convert their properties to rental assistance units wherein
the Federal Goverrnnent would subsidize that portion of the rent
which the renter was unable to pay.
Franz claimed that private landlords took advantage of
''windfall profits" during "boom" tinEs, but complained about the
unfair advantage given to subsidized housing owners during hard
times. He stated that there was a dern:mstrated need for sub-
sidized housing in Seward and urged the Council to overturn the
Commission's denial of the Conditional Use Pennit.
B. APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT
TO PURCHASE AMBULANCE - Notice of public hearing as posted and
published as required by law was noted and the public hearing
was opened.
MIKE t-mRE, 703 Third Avenue, President of the Seward
Volunteer Atrbulance Corps (SVAC), spoke in opposition to the
proposed grant application. He stated that he had mailed to
each Counci1member and the administration copies of SVAC's
Resolution No. 89-1 opposing the grant application. He stated
that SVAC had been providing emergency medical services to
Seward for thirty-five years and had developed a reputation as
one of the better all-volunteer ambulance corps in the state.
Moore stated that SVAC members were skeptical of the city's
desire to replace Medic I (owned by SVAC) with a city-owned
ambulance. He stated that when the city had purchased the last
ambulance, SVAC's specifications had been ignored, and the Corps
was now faced with operating a vehicle plagued by chronic
mechanical problems. In addition, Moore noted that he had
contacted the Conmmity Block Grant "people" and had been told
that the city had only a small chance of getting this grant
since it was geared for "economic developrrent" projects. He
recOIIlllended that the Council rewrite the grant application to
request something else the city needs which rrore nearly fits the
criteria set out by the state.
JEAN CRIPPS, 426 Second Avenue, stated that she had
been a member of SVAC for ten and one-half years. She briefly
compared the SVAC of 1957 with the current organization, point-
ing out the much greater service provided the ccmnunity today.
She stated that the cotlllllIDity is receiving a high level of care
from SVAC at this time and every effort should be made to
maintain this level of care. She objected to the city purchas-
ing an ambulance without first working with SVAC to ascertain
its needs.
No one else appeared in order to be heard and the
public hearing was closed.
X. PRESENrATIONS WITH PRIOR NOTICE ONLY:
None
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REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
XI.
ORDINANCES AND RESOLUfIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AIASKA, CREATING A HOSPITAL
DEPAR1MENT AND AMENDING PORTIONS OF CHAPl'ER
2.30 DEALING WIlli THE CCMMUNI'IY HOSPITAL
BOARD .
NOll. MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 611 ;
THE MarION WAS SECONDED BY GIESELER.
Noll explained that the proposed ordinance was not
frivolous, was not a threat to anyone working at the hospital or
to their futures, that no layoff of hospital personnel was being
considered, and that the ordinance was not a reflection on the
hours of volunteer time put in by the Hospital Board. Instead,
the ordinance would change "alnnst nothing". He noted that the
hospital is already owned by the city and the taxpayers help to
support its operation through that portion of the sales tax
which is passed on to the hospital. However, the city has no
line item accountability and no control over the tax dollars
given to the hospital once the funds have been transferred. He
stated that it was alnnst a case of taxation without representa-
tion since the hospital board is disconnected from the election
process. Noll stated that he would like to see several public
hearings on this important issue to see how the public feels and
to see if there is a better way to get the job done. He stated
that everyone is interested in looking at the overall health and
welfare, both economic and physical, of the people of Seward.
Meehan noted that Noll had brought up some good
points; however, he did not feel comfortable with this ordi-
nance. He stated that he would prefer to first IIEet with the
Hospital Board and Hospital Administration in a work session to
discuss all of the possibilities. Then, if there was a need to
proceed with a public hearing, this ordinance or another could
be introduced.
O'Brien agreed that a work session was needed, but
stated that he would like to see the ordinance introduced at
this time. He stated that, until there is something actually
"on the table" most people tended not to get too concerned. He
stated that it was inevitable that the hospital would becane a
part of the city at sane time; however, it was important to
rerrernber that introduction of this ordinance was not tantarrount
to its approval.
<<
PAGE 6
REGUlAR MEETING - JANUARY 23, 1989
VOLUME 24
Simutis concurred with Meehan and suggested that the
ordinance not be introduced until a work session could be held.
Gieseler stated that he felt it was time to bring this
issue forward for discussion. He agreed with O'Brien that
something concrete (such as this ordinance) was needed before
real discussions could begin.
Meehan disagreed, stating that he would prefer to hear
from all concerned before proceeding with introduction of the
ordinance.
MEEHAN M)VED TO POSTPONE THE VOTE ON INTRODUCTION OF
TIlE PROPOSED ORDINANCE UNTIL THE FEBRUARY 13, 1989, MEETING,
HIlli TIlE UNDERSTANDING mAT THE COUNCIL IDULD MEET WIlli THE
HOSPITAL BOARD IN A IDRK SESSION ON JANUARY 30, 1989; TIlE MOTION
HAS SECONDED BY SIMUTIS.
Noll stated that he would vote in favor of postponing
introduction of the ordinance, but he wanted to make it clear
that his motion to introduce the ordinance was not taken light-
ly. He stated that recent actions taken by the Hospital Board
raised serious doubts in his mind as to the Board's ability to
make good decisions with regards to spending the taxpayers'
rroney.
THE QUESTION HAS CAlLED AND THE M)TION TO POSTPONE
CARRIED HIlli FOUR "YES" VOTES AND 0' BRIEN VOTING "00".
B. Ordinances for Public Hearing and EnactIIEnt:
None
C. Resolutions:
GRANTS/AMBULANCE/ 1. Copies having been made available to the
RESO: public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, ALASKA, AU1HORIZING PARTICIPATION
IN TIlE CCM1UNITY DEVELOPMENr BLOCK GRANI' -
RURAL ECONCMIC DEVELOPMENI' INITIATIVE
(CDBD-REDI) PROGRAM.
O'BRIEN M)VED TO ADOPT RESOLUTION NO. 89-008; THE
MOTION \vAS SECONDED BY SIMUTIS.
Royle stated that the administration had become aware
of the existence of these grant funds in January and had asked
Schaeferneyer and Gage if they thought this would be a good
source of funding for new Fire Department equiprrent. However,
Fire Chief Gage recorrrnended a grant application for a new
ambulance to supplement existing emergency medical services
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REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
equipment and vehicles. He stated that the city had no inten-
tion of attempting to "take over" SVAC, but wanted to enhance
its program. Royle also noted that rronies are available in
three separate areas, including one dedicated to the purchase of
new equipment to enhance the ccmmmity.
Gage stated that he had contacted SVAC President Hike
Moore inmediately after learning of the availability of grant
funds. He noted that purchase of a new arribulance was part of
the city's five-year capital plan and three-year budget plan.
Gage said that one of the two arribulances currently in
service is ten years' old and will need to be replaced soon. In
addition, since SVAC' s service area extends to t1ilepost 38,
there have been times when the city has been without any arribu-
lance. He noted that with expansion of the fishing industry,
on-going operations in ship repair at SMIC, and the soon-to-be-
opened sawnill, the potential for serious incidents requiring
inmediate arribulance response is greater than ever. Therefore,
it would be prudent to have three working arribulances available.
Gage noted that it was true that the city had not yet
discussed specifications for the arribulance or its equipment with
SVAC members; however, specifications would not become an issue
unless and until grant funds were approved for the city. He
stated that the grant application was due in Anchorage by
February 13, 1989, and he assured the Council that he would
include SVAC in development of specifications if the grant is
awarded.
Simutis stated that she could see no reason not to
proceed with the application since the need for the arribulance
was clear. She said that she could understand SVAC's concerns
and bad feelings that had developed over past actions, but she
asked that they (SVAC members) work with the city administration
on this new acquisition.
Meehan suggested that Council approve the application,
noting that the administration II1l1st come back to Council for
fonnal acceptance of the grant if it is awarded.
In response to a question from Gieseler, Moore stated
that the Anibulance Corps could live with city ownership of the
arribulance, but wanted input on what will be done with Medic I.
O'Brien stated that he liked Meehan's solution, noting
that if SVAC is not satisfied when the grant is awarded, the
Council would not accept it (the grant).
TIlE QUESTION WAS CALLED AND TIlE RESOLUTION WAS ADOPTED
BY UNANIMOUS VOTE OF 1HE COUNCIL.
XII. UNFINISHED BUSINESS:
n
,
PAGE 8
REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
None
XIII.
NEW BUSINESS:
FURCHASING/ELEC. A. SIMUl'IS M)VED TO ATJI'HORIZE TIlE CITY MANAGER TO
DEFT: APPROVE TIlE PURCHASE OF A 750 KVA TRANSFORMER FRCM POTELCOM IN
THE AMOUNT OF $10,377; THE M)TION WAS SECONDED BY O'BRIEN.
Meehan asked for a ruling on his potential conflict of
interest (as an employee of Anderson's chief competitor); the
Mayor ruled that no conflict existed.
Diener stated that the transformer in question would
be placed at the Anderson Dock as part of Seward Marine Ser-
vices' major expansion project. He noted that the cost of the
transformer would be reimbursed to the city by SMS.
CON -D75: - 2-
THE QUESTION WAS CALLED AND THE MarION WAS APPROVED BY
UNANIMOUS VOTE.
B. 0' BRIEN MOVED TO APPROVE AN ADJUS1MENT TO THE
PRICE WATERHOUSE AUDIT FEE IN TIlE AMOUNI' OF $3,800; TIlE IDI'ION
WAS SECONDED BY SIMUl'IS.
O'Brien noted that the Price Waterhouse letter to
which Peirson referred in his nanorandum was not included in the
Council packets . Royle stated that there was a letter, but it
had been misplaced. He promised to get a copy for Council's
review .
0' BRIEN M)VED TO POSTPONE ACTION UNTIL FEBRUARY 13,
1989; THE MarION WAS SECONDED BY NOll. AND CARRIED UNANIMOUSLY.
XIV. CITY MANAGER REPORTS:
None
XV. COUNCIL DISCUSSION:
NOLL noted a recent newspaper article concerning the
proposed port development at Pt. McKenzie. He stated that this
had been a topic of discussion at the last Railroad Board
meeting. Noll reported that the Mat-Su Borough requested a
28-mile railroad extension to Pt. McKenzie to allow and enhance
the development of a coal export tenninal there. Noll stated
that the Borough had not yet completed a market study. ARR
Board Chainnan George Sullivan stated in the meeting that he did
not intend to support development of Pt. McKenzie if the freight
handled there was to be shifted from existing port facilities.
Noll stated that construction of the rail spur would cost an
estimated $1.75 Million per mile of line.
SIMUTIS stated that the Polar Bear Jump was successful
and she corrrnended the Chamber of Ccmrerce and Marilyn Reynolds
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PAGE 9
REGULAR MEETING - JANUARY 23, 1989
VOLUME 24
for coordinating the event. Sirnutis noted that she was not
pleased with the article highlighting the event which appeared
in the Daily News.
O'BRIEN thanked the electric crew and the Street
Department for the work they had been doing during the recent
bad weather. He asked Diener for an update on the status of the
Fall 1987 Jobs Bill projects. Diener stated that the city had
received funding for only two projects under the Governor's Jobs
Bill - Providing handicap accessibility to City Hall and funding
for the North Dock at SMIC. He stated that the improvements to
City Hall had been designed and the construction bids had been
opened. However, all bids received exceeded the amJunt of
funding available. He stated that the city hoped to provide an
elevator to access the state offices on the second floor,
handicap restrooms on the second floor and a ramp to access the
building from the street. Diener noted that since the improve-
ments would be rrost beneficial to the state, he was seeking
additional funding from state agencies to make the required
improvements. Diener noted that the first phase of North Dock
construction was complete.
O'Brien also inquired about the status of the proposed
bike path to the school. Diener stated that funding for this
project did not come from the Jobs Bill. Initial clearing was
perfonned with funds left over from block grants received by the
city. He stated that, as soon as weather permitted this Spring,
the city would be seeking volunteer help to construct the bike
path in the cleared area.
MEEHAN ccmnended the Public Works Department and
Electric Department crews, as well as Engineering & Utilities
Manager Diener, Public Horks Foreman Ainsworth and Electrical
Engineer Anderson. Meehan also noted that Senator Jim Duncan
had introduced SB 73, which would reestablish the PERS Retire-
ment Incentive Program. He stated that he would like to see
city support of this bill. Gieseler instructed Murphy to
prepare a resolution in support of SB 73 for presentation and
action on February 13. Finally, Meehan stated that he was
impres sed wi th Jean Cripps' presentation outlining SVAC' s
history.
GIESELER stated that the city crews had done an
excellent j ob during recent inclement weather and he thanked
them all. He noted that he had accompanied Royle and Diener to
Juneau to meet with City Lobbyist Kent Dawson and various state
legislators concerning the city's capital needs, particularly
the need for the transmission line upgrade. Gieseler wished
Councilmember Dunham a speedy recovery and stated that he hoped
to see her back at the next meeting. Finally, Gieseler reminded
everyone to attend the work session on January 30.
XVI. CITIZENS' DISCUSSION:
- ,/'~
PAGE 10
REGULAR MEErING - JANUARY 23, 1989
VOLUME 24
BOB BEHRENDS, Meridian Park Subdivision, asked the
Council to amend Resolution No. 89-005; Murphy pointed out that
the amendment he requested (to give further study to alternative
solid waste disposal IIEthods) was already included in the
resolution, and she presented him with a copy of SanE.
XVI1.
COUNCIL AND AlliIN. RESPONSE TO CITIZENS' Cct1MENTS:
None
XVII 1.
ADJOlJRllMENT :
The rreeting was adjourned at 10:00 p.m.
(
~~~
Ha . Giese er
Ma: r
----------------------------------------------------------------
PAGE 10
REGULAR MEETING - FEBRUARY 13, 1989
VOLill1E 24
1. CAll. TO ORDER:
The February 13, 1989, regular IIEeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember Dunham led the pledge of allegiance to
the flag.
III. ROll. CAll.:
Present were: Mayor Gieseler and Counci1members Dun-
ham, Hilton, Meehan, Noll, O'Brien and
Sinutis
Present also: City Hanager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Administrative Assistant Hartin,
Engineering & Utilities Manager Diener,
Port Marketing Director Gates, Hospital
Administrator Campbell, Electrical
Engineer Anderson, Interim Finance
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REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
Director Gifford, Police Chief Bencar-
dino and City Clerk Hurphy
IV.
APPROVAL OF MINUTES:
SIMUTIS IDVED TO APPROVE TIlE JANUARY 9 AND JANUARY 23,
1989, MINUTES AS WRITTEN; TIlE MOTION WAS SECONDED BY OOll. AND
CARRIED UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
HILTON IDVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY
FOlLOWING TIlE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS A
PERSONNEL MArrER; TIlE MarION \vAS SECONDED BY MEEHAN AND CARRIED
UNANIMOUSLY.
0' BRIEN IDVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
PRESENTED; TIlE HOTION WAS SECONDED BY HILTON AND CARRIED UNANI-
MOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the February 7, 1989, Assembly
meeting.
VI1.
CITIZENS' CCM1ENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
DON CRIPPS, 426 Second Avenue, asked the Council to
give serious consideration to proposed Ordinance No. 611 and
urged the Council to vote in favor of the ordinance's introduc-
tion in order to give the public a chance to be heard on the
proposal to make the hospital a department of the city.
JONAlliAN SEWAlL, 2410 Dirrond, and GAIL SELA, Winterset
Drive, both spoke in favor of the introduction of Ordinance No.
611 if this would assure the long tenn financial stability of
the hospital. Sewall stated that the work session held the
prior week failed to address the real issue - the viability of
Seward General Hospital. He noted that he could understand- the
Council's desire to have greater financial control of the
hospital, but stated that the Board should remain the policy-
making body with control over professional matters. Sela stated
that the hospital employees had been upset over the manner in
Which the hospital administrator had been treated. She refer-
enced a letter signed by a majority of the hospital employees
which had been distributed to the Council earlier and noted that
the employees would support the proposed ordinance only if the
goal was the hospital's financial stability.
VIII.
APPROVAL OF CONSENT CALENDAR:
Gieseler noted that Icicle Seafoods had been included
in the list of lessees delinquent in either sales or property
~"
FINANCE DEPT/RESO:
STATE REPS/LIT/
RESO:
PERSONNEL/RESO:
PURCHASING/RESO:
PAGE 12
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
taxes (Item No. 12). He stated that Icicle had paid the
delinquent personal property tax "under protest". He explained
that Icicle had been assessed a full year's tax on a boat which
was docked at its facility on tax assessment day but which is
actually homeported elsewhere.
0' Brien asked to rrove I terns No. 6 and 11 to the
regular meeting agenda as New Business items.
AMENDED ;
MOUSLY.
SIMUTIS M)VED TO APPROVE 1HE CONSENT CALENDAR AS
TIlE MarION WAS SECONDED BY HILTON AND CARRIED UNANI-
The following actions were taken:
1. Resolution No.
manager to obtain MasterCard
of Anchorage, was approved;
89-009, authorizing the city
services from First National Bank
2. Resolution No. 89-010, requesting the Legislature
to enact comprehensive tort refonn legislation, was approved;
3. Resolution No. 89-011, supporting legislation
which would reestablish the PERS Retirement Incentive Program,
was approved;
4. Resolution No. 89-012, confirming Council au-
thorization to purchase a 750 KVA TransforIIEr, was approved;
CITY
lIFT L/T IT/RESO' 5. Resolution No. 89-013, approving a pre-determin-
.~.u . ation settlement agreement regarding handicap access to public
facilities, was approved;
ABCB:
ABCB:
PERMITS FOR GAMES
OF CHANCE & SKILL:
ACCTS. PAYABLE:
LEASES:
6. Moved to Regular Meeting Agenda;
7. ABCB notification of applications for renewal of
liquor licenses as filed by BREEZE INN, RAY'S WATERFRONT, NEW
SEWARD HOTEL BAR & GRIll., and BPO EIlZS lODGE OO. 1773 was filed
without objection;
8. February 9, 1989 , letter to ABCB asking for a
30-day extension for comment on liquor license renewal applica-
tion filed by Dreamland Bowl was noted for information;
9. Applications for Permits for Games of Chance and
Skill as filed by MARAlliON HCWMAKERS, WES-GEN AUXILIARY,
RESURREcrION BAY LIONS & LIONESS CLUB, and SACRED HEART PARISH
were noted for infonnation;
10. February 8, 1989, Finance Department's list of
Accounts Payable totalling $543,875.99 was noted for informa-
tion;
11. Moved to Regular Meeting Agenda;
12. January 23, 1989, rrerrorandum from Administrative
Assistant Martin regarding notices of lease default for failure
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REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
to pay taxes and/ or utilities as mailed to ICIClE SEAFOODS, DAlE
CLEMENS (SILVER SAIMON CACHE and THE FISH HOUSE), JURIS MINDEN-
BERGS (TIlE BREEZE INN), DEAN LUST (SAILING, INC.), MICHAEL
NORMAN (QUEST MARINE), STEVE HACKETT (AK TREKS & VOYAGES), and
INlET FISHERIES (VINCE GODDARD) was noted for information;
1,q
13. January 27, 1989, mrorandum fran Schaefenneyer LITIGATION:
regarding the city's suit against Joel Steelmm for promissory
note default was noted for information;
14. February 7, 1989, mrorandum from the Trade Board
regarding incentive leases at SMIC was noted for information;
15. Notice of February 15, 1989, public hearing
regarding the proposed reconstruction of Exit Glacier Road was
noted for information;
16. January 20, 1989, project status and bid schedule
for the new Seward Elementary School was noted for information;
17. February 2, 1989, trip report as filed by City
Manager Royle regarding his trip to Seattle with the Mayor and
Port Marketing Director was noted for infonnation; and
18. The following proclamations of the Mayor were PROCLAMATIONS:
noted for information:
02/05-11/89 -- BOY SCOUT \~EK
02/12-18/89 -- FHA/HERO WEEK
IX. PUBLIC HEARINGS:
A. BOARD OF ADJUS1MENT HEARING - Notice of public
hearing as posted and published as required by law regarding an
appeal as filed by Frank Irick of the Planning Conmission' s
denial of a conditional use permit for the construction of a
24-unit apartment complex in the Jesse Lee Heights Subdivision
was noted, and the public hearing was opened.
JOANNE MCCABE, 211 Lowell Canyon Road, representing
the Seward Property Owners Association, stated that the proposed
proj ect would have an adverse effect on property values in the
corrmmity and thus would adversely affect Seward. She urged the
Council to uphold the Corrmission in its decision to deny the
conditional use pennit, stating that the Corrrnission acted
properly and within the Code. McCabe also reminded the Council
that Irick had yet to provide evidence that the proj ect would
not adversely affect property values.
NOTE: Hilton was called away fran the IIEeting at 7:50 p.m.
MICHELLE MINOR, attorney for Frank Irick and developer
Marty Frantz, spoke for the appellant. She noted that the
subject property is zoned R-3 (Multi-family residential) and
would allow many uses outright, including the construction of
PUBLIC HEARINGS
(Board of Adj.-
Irick)
'1/J
PAGE 14
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
four-plexes on the site. She stated that the property was zoned
R-3 in 1985 to permit l1lllti-family developrrent. Minor stated
that the SPOA claimed that the project would devalue property
in Seward; however, this was not the issue. Minor claimed that
the real issue was "How is Irick to develop his property" if
this use is not allowed. Minor stated that the FarIIErs Home
Administration (FrrHA) had approached Frantz saying that the
agency had identified Seward as a qualified site for FmHA
housing. She noted that the project would employ local labor
during construction and would add over $1 Million to the tax
rolls. She also stated that the project would not be in direct
competition with existing rental units since the developer was
targeting a different market - the very low income market.
Minor reminded Council that the Planning Corrmission should not
base its decisions on whether there is a need for subsidized
housing. She added that, if there ~l7as no need for this type of
housing, FrrHA would not finance the project. Minor urged the
Council to reverse the decision made by the Corrmission and to
remand the matter back with instructions that the CUP be issued
with the addition of appropriate conditions.
CHRISTY AUDETTE, 1818 Phoenix Road, stated that she
would rather see a planned multi-family project such as the one
proposed by Seward Associates than the construction of rrore
four-plexes in the area. She also stated that she had received
a recent appraisal of her house and it had not indicated a
decline in value because of the construction of other apartrrents
in the area.
JAMES HARDIE, President of National Survey and Syn-
dication Affiliates, Salt Lake City, Utah, spoke for the appel-
lant. He stated that he had performed the market survey and had
found a great need in Seward for subsidized housing.
ROGER SAMPSON, Mile 6.5, Seward Highway, stated that
he was opposed to the project. Sampson noted that conmmities
go through real estate highs and lows and he feared that Seward
would suffer in the long term because of this project. He noted
that whenever goverrarent begins to provide any kind of sub-
sidized housing, private sector investors are adversely affect-
ed. He urged the Council to support the Planning Corrmission in
its decision to deny the permit.
KEITH CAMPBEll., 1910 Forget-Me-Not Circle, stated that
he was opposed to the project. He noted that there is no need
for rrore subsidized housing projects in this conmmity. Camp-
bell stated that when the borough tax bills come out in a few
rronths, conm.mity members and the city may be shocked at what
has happened to the city's tax base. He predicted a decline in
property values throughout the conmmity. Referring to Minor's
statement that the subject property had been rezoned in 1985 in
anticipation of the need for rrore multi-family developrrent,
Campbell noted that the state's economy was "booming" in 1985,
and 1985's facts are no longer valid.
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REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
FRANK IRICK, Anchorage, urged the Council to uphold
his appeal.
No one else appeared in order to be heard and the
public hearing was closed.
Arvidson noted that Murphy's IIErrorandum concerning the
voting procedure to be followed by the Council contained one
error - the Council would need four affirmative votes to uphold
the appeal. He added that he agreed with Murphy's suggestion
that the Council deliberate and come to a consensus in Executive
Session and then ratify its decision at the next meeting.
SIMUTIS MOVED TO MEET IN EXECUTIVE SESSION BEGINNING
AT 3:00 P.M., TUESDAY, FEBRUARY 14, 1989, IN ORDER TO DELIBERATE
ON TIlE IRICK APPEAL; TIlE M)TION WAS SECONDED BY MEEHAN AND
CARRIED WIlli FIVE "YES" VOTES AND NOll. AND O'BRIEN ABSTAINING.
(The Mayor ruled that Noll, owner of residential property
adjoining the subject property, and 0' Brien, whose primary
source of income is from rentals, had conflicts of interest with
regard to this action and would, therefore, be unable to speak
to or vote on the appeal.)
X. PRESENTATIONS WIlli PRIOR NanCE ONLY:
None
XL
ORDll1ANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Murphy noted that a rrotion to introduce
proposed Ordinance No. 611 was on the floor, having been post-
poned from the last IIEeting.
Meehan stated that he was opposed to the proposed
ordinance. He stated that the hospital could be better managed
by the Hospital Board than by the Council. However, since the
employees of the Hospital have now come forward with a letter in
support of the ordinance, he would support introduction in order
to allow public hearing to take place.
Noll stated that he, too, would support introduction
of the ordinance. He assured Sela and other hospital employees
that his purpose in sponsoring the ordinance was to assure the
long term stability and viability of the hospital.
Dunham stated that there was a need for public in-
volveID2nt, adding that she would support introduction of the
ordinance to assure public hearing. Dunham noted that the
public l1llst be made aware of the seriousness of the problems the
hospital is experiencing and urged the community to participate
in the hearings.
rr
FINANCE/CON- 3\ ~ /
RESO: (Equip.
Lease Purch.
Agrmt. )
BUDGET/RESO:
PAGE 16
REGULAR MEEI'ING - FEBRUARY 13, 1989
VOLUME 24
O'Brien stated that he had been unable to attend the
work session last week. He urged both the Council and the Board
to put aside hostilities and discuss the issues cooperatively.
He noted that the Board is knowledgeable and has gained his
respect over the period of time he has been attending its
meetings as the Council's representative. 0' Brien also en-
couraged the Council to conduct several public hearings and work
sessions before acting on the ordinance.
THE QUESTION WAS CALLED AND THE MarION TO INTRODUCE
PROPOSED ORDINANCE oo. 611 WAS APPROVED BY UNANlM)US VOTE OF
COUNCIL.
Gieseler instructed the Clerk to arrange a work
session with the Hospital Board at the Board's convenience.
O'Brien asked that all interested parties prepare a list of
specific concerns to be addressed at the work session.
B. Ordinances for Public Hearing and EnactIIEnt:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLlITION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AIASKA, AUTHORIZING TIlE EXECUTION
OF AN EQUIPMENT lEASE/PURCHASE AGRED1ENT BY
AND BErnEEN TIlE CITY AND CITICORP OORlli
AMERICA, INC.: AND PROVIDING FOR RELATED
MATTERS .
MEEHAN M)VED TO APPROVE RESOLurION OO. 89-015; THE
MarION WAS SECONDED BY OOll. AND CARRIED UNANlM)USLY.
RECESS: The meeting was recessed at 9:00 p.m. and reconvened at
9:12 p.m.
NaTE: Hilton returned to the IIEeting.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLurION OF 'lliE CITY COUNCIL OF TIlE CITY
OF SEWARD, AIASKA, AurHORIZING TIlE TRANSFER
OF FUNDS FROM THE GENERAL FUND-FUND BAlANCE
TO PAY TIlE DEBT SERVICE FOR TIlE PURCHASE OF
CERTAIN CITY EQUIPMENT.
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PAGE 17
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
HILTON M)VED TO APPROVE RESOLUI'ION NO. 89-016; TIlE
MarION WAS SECONDED BY NOll. AND CARRIED UNANIMJUSLY.
3. Copies having been made available to the PURCHASING/RESO:
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF TIlE CITY
OF SEWARD, PllASKA, AU1HORIZING A NOTICE OF
INTENT TO AWARD PURCHASE CONTRACTS FOR 1HE
PURCHASE OF COMPUTER HARDWARE AND SOFIWARE.
SIMUTIS M)VED TO APPROVE RESOLUTION NO. 89-017; TIlE
MOTION WAS SECONDED BY HILTON.
Meehan stated that the administration appeared to be
budgeting more rroney than would actually be needed to acquire
the hardware and software, install it and train employees. He
noted that travel costs seemed to have been estimated on the
high side. Meehan stated that he would rather see the adminis-
tration budget conservatively, and then come back to the Council
for an additional appropriation if the funds were needed. Royle
replied that the estimates were deliberately high so that the
Council would have a very clear picture of what the new computer
system was likely to cost. He stated that he would rather
complete the project with excess funds than to come back to
Council later and say that he had underestimated the cost and
ask for additional funds.
In response to a question from Gieseler, Schaefermeyer
stated that a portion of the identified costs would be eligible
for financing; however, travel and staff training would probably
not be covered in any financing package. Rather, these funds
would be appropriated from the Fund Balance.
Hilton pointed out that Council was not being asked to
authorize the expenditure of funds at this tinE. He noted that
the resolution only authorized purchase of hardware and software
contingent upon the city obtaining financing through a lease or
lease/purchase package. He added that Council would eventually
have to approve the financing package before the computer
equipment and programs could be acquired. Hilton suggested that
the Council request frequent status reports from the City
Manager concerning travel and training costs if these items were
a concern.
O'Brien objected to sending two employees to receive
systems management training, stating that the ''keypunch people"
would have no use for this training or information. O'Brien
also asked if the cost of the software maintenance package had
been identified for future years. Arvidson noted that the
Timeline agreement stated that the price charged the city each
year would be the sarre as the list price charged all other
customers.
di f"
, ,
PAGE 18
REGULAR }1EETING - FEBRUARY 13, 1989
VOLUME 24
Following further discussion, THE QUESTION WAS CAlLED
AND TIlE RESOLUTION WAS APPROVED BY UNANlM)US VOTE OF TIlE OJUN-
elL.
PROMOTION/RESO:
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEMARD, AlASKA, APPROPRIATING FUNDS FRCM
TIlE GENERAL FUND-FUND BAlANCE TO COVER
TRAVEL AND RELATED EXPENSES FOR TIlE CI1Y'S
PARTICIPATION IN KATFA 1989.
NOIL MOVED TO APPROVE RESOLUTION NO. 89-018; THE
MOTION WAS SECONDED BY SIMUI'IS AND CARRIED UNANIMOUSLY.
XII. UNFINISHED BUSINESS:
AUDIT/CON-075: -'2.-
A. Hurphy noted that a rrotion TO APPROVE AN ADJUST-
MENT TO TIlE PRICE WATERHOUSE AUDIT FEE IN TIlE mOUNI' OF $3,800
was on the floor. (Original rrotion was made by O'Brien and
seconded by Simutis.) She further noted that the Price Water-
house letter requested by O'Brien had been included in Council
packets.
O'Brien noted that the increased cost appeared to have
been incurred because of the city's failure to properly prepare
for the auditors. Schaefenneyer pointed out that the Council
had originally authorized the administration to enter into a
contract with P/W for an annual amount mE $15,000. P/W agreed
to charge the city only $12,000 if the city prepared the audit
report, and fOrIIEr Finance Director Peirson had agreed to do
this. Preparation of this report had taken much rrore time than
Peirson had anticipated; thus the city was not prepared for the
auditors when they arrived to CCllIlIence their field work. P/W
had then asked for additional compensation (over the $12,000
reduced contract) totalling $5,400. Through negotiations,
Peirson had reduced this request for additional compensation to
$3,800. However, since the city had entered into a reduced
contract with P/W initially, this actually represented only $800
rrore than Council had originally approved for the annual audit.
TIlE QUESTION WAS CALLED AND THE M)TION CARRIED BY
UNANIMOUS VOTE OF COUNCIL.
XIII.
NEW BUSINESS:
CLAIM FOR DAMAGES: A. SIMUTIS M)VED TO APPROVE 1HE CIAll1 FOR DAMAGES
(Evert DENIED) TOTAlLING $566.80 AS FILED BY COll.EEN C. EWERT; THE MarION WAS
SECONDED BY HILTON AND FAIlED WIlli AIL PRESENT VOTING "NO".
CLAIM FOR DAMAGES: B. MEEHAN MNED TO APPROVE THE CIAll1 FOR DAMAGES
(March DENIED) TOTAlLING $159.99 AS FIlED BY LOUIE R. MARCH, JR.; TIlE mTION
WAS SECONDED BY DUNHAM.
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REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
Gieseler noted that he had received a letter from
March earlier in the day and he wished to note it for the
record.
In response to a question from 0' Brien, Electrical
Engineer Anderson stated that the Lightening Arrestor on the
transforIIEr outside the March residence had failed at the time
of a system-wide power outage. He added that March claimed that
the failure was the result of the installation of "inferior"
arrestors by the city. Anderson stated that the city has always
used a "top of the line" rretal oxide type arrestor, which is the
leading surge arrestor available on the market today.
TIlE QUESTION WAS CALlED AND THE MJrION FAILED WIlli ALL
PRESENT VOTING "00".
C. Gieseler noted that the city had received appli-
cations fran the following six individuals to fill the three
vacant Planning Carrmission seats:
PIERRE AUTHIER
JIM FREDRICXSON
LEE D. aJRDANIER
DONNA KOWALSKI
BRAD SIDWDEN
JOHN P. WOODRUFF
Following a written poll of the Council, GIESELER NCMINATED
FREDRICXSON, KOWALSKI AND WOODRUFF TO nIL TIlE 1HREE VACANT
SEATS.
HILTON MOVED TO CONFIRM TIlE APPOINI'MENT OF FREDRICK-
SON, KCMALSKI AND WOODRUFF TO TIlE PLANNING CCM1ISSION; THE
MarION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. (The
appointIIEnts were made for three-year terms to expire February
1992. )
D. [MOVED FRCM CONSENT CALENDAR] Copies having been
made available to the public, Gieseler noted by title only a
proposed resolution entitled:
A RESOLUfION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, AlASKA, AWARDING A CONTRACT FOR
HANDICAP IMPROVEMENTS AND ROOF REPAIRS AND
APPROPRIATING FUNDS.
O'BRIEN M)VED TO APPROVE RESOLUTION NO. 89-014; TIlE
MarION WAS SECONDED BY NOIL.
O'Brien asked if the state had agreed to pay its 41%
share of the cost of making the handicap improvements to the
building. Schaefermeyer stated that the city has an agreeIIEnt
with the state that it (the state) will pay 41. 7% of the annual
cost of maintenance, repairs, utilities, etc. for the operation
19
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PLANNING COMMISSIC
(Appointments) I
C. HALL/CON-32//
RESO: (Handicap
Improvements)
Cl(l
" t
,
PAGE 20
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
of City Hall. He stated that the city had not contacted the
state as yet concerning these improvements, but noted that the
city had to make the improveIIEnts whether the state funded its
share or not. He added that the state has traditionally funded
41% of the cost of upgrade projects to the building, including
remodelling on the first floor. Schaefermeyer also noted that a
significant portion of the cost of the handicap improveIIEnts
being made would provide access to the second floor which
contains only state offices. In addition, the city is under
state mandate to provide the handicap access.
ruE QUESTION WAS CAILED AND TIlE M)TION CARRIED UNANI-
MOUSLY.
E. O'Brien asked how a nonprofit group from
Anchorage mmaged to get a permit to raise funds within the city
of Seward without coming to the city first, noting that a
similar permittee had been required to request permission from
the City Council last year. Murphy noted that the group which
had been denied a permit last sumner (Sweet Adelines of Anchor-
age) were interested in holding a one-time only event in Seward
over the July 4 weekend. Parents United, however, had applied
to the state for a permit to sanction pull-tab activities all
over the state, and this type of permit did not require sanc-
tioning by each individual locality.
XIV. CITY MANAGER REPORTS:
ROYlE noted that City Hall would be closed February
20, Presidents Day.
GATES reported that Seward and Kodiak had been select-
ed as finalists for the Navy Homeport site. He suggested that
now is the time to redouble the city's efforts to retain the
option of homeporting. Gates estimated the Environmental Impact
Statement would take approximately one year to complete and
stated that final selection would not be made until the EIS had
been completed. Gates added that, whatever the outcome, the
docurrented, impartial assessment of the port of Seward prepared
by the U. S. Navy would prove to be invaluable to the city as it
continues to market its port facilities. Dunham asked if the
city had determined an approximate date for an election on the
homeport issue. Gates stated that the election should not be
held until the Navy has detennined its mission in Alaska, since
this would detennine the impact in nurribers of seamen and support
personnel which the conmmity could expect.
GATES stated that Chugach Alaska Corporation has asked
to negotiate a third lease with the city and has further re-
quested that this be an "incentive" lease. He noted that the
Trade Board had reconmended that Council charge full market
lease value for this particular lease since it would entail no
capital investment and no additional jobs. COUNCIL CONCURRED
WIlli THE RECCM1ENDATION OF TIlE TRADE BOARD.
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PAGE 21
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
GATES noted that the city had received a proposal from
Samko Trading Co., Ltd., of Pusan, Korea, regarding the construc-
tion of a chop stick factory at SMIC. Samko's plans called for
a $2 Million investment and the creation of 160 fulltiIIE,
year-round jobs. He noted that Samko had asked for five years'
free lease, adding that the Trade Board had endorsed the contin-
uation of incentive leasing using the "one year's free lease for
each $1 Million in capital investIIEnt at the site." COUNCIL
CONCURRED WIlli TIlE RECCM1ENDATION OF TIlE TRADE BOARD.
Finally, GATES stated that the administration con-
tinued its planning for the upcoming KATFA trip.
XV. COUNCIL DISCUSSION:
DUNHAM stated that if the city receives nothing but
the port study conducted by the Navy for its homeporting ef-
forts, we will be ahead of the game. She noted that this
docurrent is something "we could not have bought for any aIOOunt
of rroney."
MEEHAN noted that the U. S. Navy owns land in Kodiak.
He asked if this would have any bearing on its final decision.
Gates stated that the Navy's mission has not yet been declared.
He noted that if the mission turned out to be "Northwest Ocean
Defense", Kodiak would have a natural geographic advantage.
However, the real detennining factor would be the dollar invest-
ment the Navy would have to make to develop its facilities.
Gates noted that the Navy estimated that it would cost $15
Million rrore to develop a dock in Kodiak than in Seward.
NOLL noted that the Navy had indicated in its letter
to the state that it expected the state to pick up the tab for
construction of its homeport facility. He stated that until the
Navy and the state come to some agreement concerning their
financial relationship, nothing will happen. He added, however,
that Seward is in a very good position when that time comes.
NOll. thanked Icicle Seafoods for its contribution of
seafood fo~e state's banquet in Seoul during KATFA 1989. He
stated that several USSR scientists would be in town to visit
IMS, and thanked the Clerk's Department for preparing the
invitations for the dinner and reception. Finally, he thanked
Diener for his efforts in Juneau to secure ftmding for the
Transmission Line improvements.
GIESELER stated that city lobbyist Kent Dawson had
called to infonn him that $15 Million for the Transmission Line
improvements had been included in a Senate Bill sponsored by
Senator Kerttula, and $5 Million had been included in the
Governor's budget for that project. Gieseler also noted that
Michael Cowper is accepting nominations for her "First Lady's
Volunteers Awards Program". He stated that anyone interested in
making a nomination should see the Clerk for forms. Gieseler
nn
,. "
PAGE 22
REGULAR MEETING - FEBRUARY 13, 1989
VOLUME 24
noted that, unless there was an objection from the Council, he
intended to send a letter to the Girdwood Citizens Board
concerning upgrade of the Seward Highway, indicating that the
city has already identified Mile 50-65 as its top road priority,
and noting that the section of roadway identified by the
Girdwood residents lies within the mmicipality of Anchorage.
Gieseler also noted that the Trade Board had requested that he
send a letter to Senator Arliss Sturgulewski, applauding her
efforts regarding mariculture development in the state.
XVI. CITIZENS' DISCUSSION:
None
XVI1.
COUNCIL AND ADMIN. RESPONSE TO CITIZENS' CCM1ENI'S:
None
XVIII .
ADJOURNMENT :
The IIEeting was adjourned at 11:02 p.m., and after a
short recess, the Council reconvened in Executive Session to
discuss a personnel matter.
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e IA,,4-
Har . Giese er
Mayor
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----------------------------------------------------------------
PAGE 22
REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
I. CAll. TO ORDER:
The February 27, 1989, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Hayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember O'Brien led the pledge of allegiance to
the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmembers Dun-
ham, Hilton, Meehan, Noll, O'Brien and
Simutis
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REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
Present also: City Manager Royle, Deputy City Manager
Schaefenneyer, City Attorney Arvidson,
Port Marketing Director Gates, Adminis-
trative Assistant Martin, Interim
Finance Director Gifford, Engineering &
Utilities Manager Diener, Electrical
Engineer Anderson, Parks & Recreation
DepartIIEnt Director Yanez, Police Chief
Bencardino, Hospital Administrator
Campbell and City Clerk Murphy
IV. APPROVAL OF MINUIES:
SIMUTIS M)VED TO APPROVE TIlE FEBRUARY 13, 1989,
MINUTES AS HRITTEN; THE MarION WAS SECONDED BY HILTON AND
CARRIED UNANTI10USLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
HILTON MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
PRESENTED; TIlE mTION WAS SECONDED BY 0' BRIEN AND CARRIED
UNANIMOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Sewall was
not present and no report was given.
VII. CITIZENS 1 CCH1ENTS ON AGENDA ITEMS NOT SCHEDUlED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
ofl'1
'. , ,~. "
MEEHAN MOVED TO APPROVE TIlE CONSENr CALENDAR AS
PRESENTED; TIlE M)TION WAS SECONDED BY SIMUrIS AND CARRIED
UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-020, supporting the issuance of PARKS & REC/RESO:
a tour concession permit on the Harding Icefield by the National
Park Service, was approved;
2. Invoice from Scottsdale Insurance Company total- C . A TTY :
ling $1,780.92 for legal services in the matter of Gary Crochet
-::!. city was approved for payment;
3. February 22, 1989, IlErrorandum from Martin re-
questing Council consent to the sublease of Boardwalk Site No. 5
by Lee Gordanier to John Sheedy, dba Mariah Charters, was
approved;
4. February 22, 1989, merrorandum from Martin re-
questing Council consent to the assignment for security purposes
RE- 0:/1>:
RE- Ocn:
Of.
C. COUNCIL: (Re-
schedule Mtg)
LEASES:
PAGE 24
REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
of the leasehold interest in Lot 1, Block 1, Marina Subdivision,
from Dale and Joan Clemens, dba The Fish House, to the First
National Bank of Anchorage, was approved;
5. February 21, 1989, IIEIIDrandum from Murphy re-
questing Council authorization to reschedule the second IIEeting
in March to Tuesday, March 28, 1989, was approved;
6. February 22, 1989, IIEIIDrandum from Martin con-
cerning the results of his letters to lessees regarding default
and possible tennination of lease due to delinquent tax and
utility bills was noted for information;
7. February 14, 1989, merrorandum from Borough Mayor
Don Gilmm to KPB Assembly President Sewall regarding Seward
School EnrollIIEnt Projections was noted for information; and
8. StateID2nt of Intent to Do Business with the City
as filed by Counci1member O'Brien was noted for information. ..
IX. PUBLIC HEARINGS:
None
X. PRESENI'ATIONS WITH PRIOR mTICE ONLY:
None
XL ORDINANCES AND RESOLurIONS:
A. Ordinances for Introduction:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIIE CITY
OF SEWARD, ALASKA, ENACTING MISCElLANEOUS
"HOUSEKEEPING" REVISIONS TO TIIE SEWARD CITY
CODE.
NOLL MOVED TO INTRODUCE PROPOSED ORDINANCE m. 612;
THE MarION WAS SECONDED BY SlMUTIS AND CARRIED UNANlMOUSLY.
Public hearing was scheduled for March 13, 1989.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF lliE CITY
OF SEWARD, l>J..ASKA, AMENDING CHAPTER 2.10 OF
THE SEWARD CITY CODE RElATIVE TO MEETINGS OF
COUNCIL.
I
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PAGE 25
REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
NOlL HOVED TO INTRODUCE PROPOSED ORDINANCE NO. 613;
THE t-mION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for March 13, 1989.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIlE CITY
OF SEHARD, M,ASKA, ENACTING MISCELLANEOUS
REVISIONS TO THE SEWARD CITY CODE, TITLE 4,
ELECTIONS.
NOLL MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 614;
THE MillION VIAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for March 13, 1989.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF THE CITY
OF SEVJARD, M,ASKA, REPEALING AND RE-ENACTING
CHAPTER 6 OF TIlE SEWARD CITY CODE, PURCHAS-
lNG, CONTRACTS AND PROFESSIONAL SERVICES.
SIMUTIS M)VED TO INTRODUCE PROPOSED ORDINANCE m. 615;
TIlE MillION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for March 13, 1989.
B. Ordinances for Public Hearing and EnactIIEnt:
1. Copies having been made available to the COMMUNITY HOSP /
public, Gieseler noted by title only a proposed ordinance ORD: (PH Only)
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF TIlE CITY
OF SEWARD, M,ASKA, CREATING A HOSPITAL
DEPAR1MENT AND AMENDING PORTIONS OF CHAPTER
2.30 DEALING WIlli THE CCM1lJNI'IY HOSPITAL
BOARD .
Notice of public hearing as posted and published as
required by law was noted. Gieseler stated that this item was
scheduled for public hearing only and would not be open to
Council discussion or action. He added that the Council would
be meeting in a work session with the Hospital Board on March 15
and would conduct a second public hearing at the March 28, 1989,
meeting. Public hearing was opened.
MARK BEALS, 801 Fourth Avenue, stated that he had been
employed as an RN at the Hospital since 1982. He stated that
the city and the Hospital had been relying too long on the state
to fund replacement of the hospital and purchase of nuch needed
,--,('
,"'(
JLH/CUP/BRD OF
ADJ: (Irick de-
cision - Issue
Permit/Remand
back to P&Z)
PAGE 26
REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
equiprrent. He said that without a plan to meet the hospital's
financial needs, the conmmity would continue to have problems
attracting qualified health care professionals. Beals stated
that he would support enactIIEnt of Ordinance 611 if the Hospital
Board retained its policy-making role.
DON CRIPPS, 426 Second Avenue, stated that the arrount
of tax dollars given to the hospital each year had continued to
grow and the people needed direct access to the decision making
process for the expenditure of those funds. He stated that this
access should be provided through the City Council, and he urged
the Council to enact Ordinance No. 611 as introduced.
JIM KRASNANSKI, Salrron Creek Trailer Park, Space No.
11, stated that the hospital staff would continue to lobby for a
new hospital facility. He said that, "after a decade of rroral
neglect, it will take a lot to provide this essential service",
and he urged the Council to enact Ordinance No. 611.
JEAN CRIPPS, 426 Second Avenue, spoke in support of
the ordinance as introduced.
No one else appeared in order to be heard and the
public hearing was closed.
The Mayor scheduled a Council work session for Tues-
day, March 14, 1989, beginning at 7:00 p.m., for discussion of
hospital issues.
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF lliE CITY COUNCIL OF THE CITY
OF SEHARD, AIASKA, ADOPTING DECISION AS
BOARD OF ADJUS'IMENT ON APPEAL FRCM DECISION
OF TIlE SEWARD ADVISORY PLANNING AND ZONING
COMMISSION.
HILTON HOVED TO APPROVE RESOLUfION NO. 89-019; THE
HarrON WAS SECONDED BY SIMUTIS.
Heehan stated that he would support the resolution,
although he did not agree with all of the statements made in the
attached "Findings", particularly the assertion on Pages 22-24
that property values would not be adversely affected.
TIlE QUESTION WAS CAll.ED AND THE RESOLUTION WAS AP-
PROVED 1;.JIlli FIVE "YES" VOTES AND NOLL AND 0' BRIEN ABSTAINING.
(Gieseler ruled that both Noll and O'Brien had substantial
financial interests in this action. Noll's property is located
adjacent to the subject property and O'Brien is a major landlord
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PAGE 27
REGULAR MEETING - FEBRUARY 27, 1989
VOLUME 24
in Seward, deriving a substantial portion of his income from
rentals.)
XII. UNFINISHED BUSINESS:
None
XII 1.
NEW BUSINESS:
A. HILTON MOVED TO APPROVE TIlE REQUEST BY TIlE
ENGINEERING DEPARTMENT FOR A FULL-TIME STAKING ENGINEER POSI-
TION; TIlE mTION WAS SECONDED BY MEEHAN.
Royle explained that the city has actually had a
staking engineer for a number of years on an interim basis.
However, the need for a full-time employee was now evident. He
noted that the current employee in that position has increased
revenues to the utility and will earn at least a portion of his
salary each year in increased fees to the city.
Following further discussion; THE QUESTION WAS CALLED
AND lliE MOTION CARRIED BY UNANIMOUS VOTE OF lliE COUNCIL.
XIV. CITY MANAGER REPORTS:
ROYlE stated that he had met with Dana Brockway,
F~ecutive Director of the Alaska Visitors Association, and Tim
O'Connolly, who wrote the "jingle" for Seward several years ago,
while in Anchorage the previous week. He said that he had
discussed with them Seward's advertising effort for the coming
tourist season, and they had decided that the best approach,
initially, would be to focus the city's advertising efforts on
the Anchorage metropolitan market.
ROYlE noted that he had met with the n1S Director and
had been informed that Senator Kerttula planned to propose
enlarging the ll1S Research Center. He suggested that the ll1S
staff and Board might want to meet with Kerttula when he visits
Seward in March to dedicate the Comnunity Center.
ROYLE asked the Council to schedule a work session
with Gates soon to discuss the upcoming KATFA 89 trip. The
Mayor scheduled the work session for Noon, February 28, 1989.
ROLYE also noted that the printed brochures explaining
the Electric Utility charges had been received. He stated that
they would be distributed to each utility customer and would be
available at City Hall for interested persons and new cust0ID2rs.
XV. COUNCIL DISCUSSION:
NOll. reported that the local Talent Show had been a
success. He also stated that Suneel was preparing a response to
(''117
~.
PERSONNEL: (New
Position Auth/
Staking Eng.)
?"),
PAGE 28
REGUIAR MEETING - FEBRUARY 27, 1989
VOLUME 24
the recent press regarding the Mat-Su Borough's proposal that
the state's coal port be rroved to Pt. McKenzie, adding that
Suneel had looked at several locations, including the
Anchorage/Mat-Su area, before choosing Seward.
GIESELER noted that he had been quoted in the Anchor-
age TinEs regarding the Mat-Su proposal (re: coal dock). He
noted that he had attended the Resource Development Council's
get-together in Anchorage (along with Gates, Martin, Noll,
Sharon Anderson and Bob Booher), and had found the participants
to be very interested in "how Seward is doing". He noted that
the Number One topic of conversation at the convention was the
proposed chopstick factory at SMIC. Finally, Gieseler wished
the KATFA participants success.
XVI. CITIZENS' DISCUSSION:
CHRIS GATES, 1680 Greendale Drive, Anchorage, (Port
Marketing Director) stated that negotiations for the chopstick
factory were not yet complete, but were going well.
XVI 1.
COUNCIL AND AIMIN. RESPONSE TO CITIZENS' CXM1ENTS:
None
XVIII .
ADJOURNMENT :
The ID2eting was adjourned at 8: 15 p.m.
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Mayo
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PAGE 29
REGULAR MEETING - MARCH 13, 1989
VOLUME 24-
I. CAlL TO ORDER:
The Ha.rch 13, 1989, regular ID2eting of the Seward City
Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Counci1member Dunham led the pledge of allegiance to
the flag.
III. ROll. CALL:
Present were: Mayor Gieseler and Counci1members Dun-
ham, Hilton, Meehan, Noll and S:im..ltis
(O'Brien arrived at 7:40 p.m.)
Present also: City Manager Royle, Deputy City Manager
SchaeferIIEyer, City Attorney Arvidson,
Administrative Assistant Martin, Port
Marketing Director Gates, Interim
Finance Director Gifford, Parks and
Recreation Director Yanez, Engineering
and Utilities Manager Diener, City Bond
Counsel Wohlforth and Klinkner, and
City Clerk Murphy
PRESENTATIONS:
A. Gieseler read aloud a special Legislative Procla-
mation in meIrory of Albert Kawabe. He then presented copies of
the proclamation to Eiko Kawabe for each ID2mber of the family.
B. Gieseler presented a plaque to Dale Lindsey in
recognition of his service to the community as a charter member
of the Seward Trade Board. Lindsey thanked the Mayor and said
that it had been a pleasure to serve on the Board.
IV. APPROVAL OF MINUTES:
SIMlITIS }[)VED TO APPROVE 1HE FEBRUARY 27, 1989,
MINUTES AS HRITTEN; 1HE MarION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
GIESELER MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATE-
LY FOLLCMING TIlE CLOSE OF REGULAR BUSINESS IN ORDER TO DISCUSS A
MATTER WHICH COULD ADVERSELY AFFECT 1HE FINANCES OF TIlE CITY;
1HE MarION WAS SECONDED BY HILTON AND CARRIED UNANlM)USLY.
HILTON MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
PRESENTED; 1HE MarION WAS SECONDED BY SJMUTIS AND CARRIED
UNANIMOUSLY.
29
PRESENTATIONS:
(Kawabe Proc.
from Legifl.)
PRESENTATIONS:
(D.Lindsey)
t"" >"'"~
,
PAGE 30
REGUlAR MEETING - MARCH 13, 1989
VOLUME 24-
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall was not present, and no report was given.
VII. CITIZENS I CCM1ENTS ON AGENDA ITEMS NaT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
Murphy asked that the recommendation on Consent
Calendar Item No. 6 be changed to read "Issue letter of nonob-
j ection" .
Simutis asked that Item No. 1 be rroved to the Regular
Meeting Agenda as the second item under "Resolutions".
NOTE: O'Brien arrived at 7 :40 p.m.
MEEHAN MOVED TO APPROVE 1HE CONSENT CALENDAR AS
AMENDED; THE MarION WAS SECONDED BY HILTON AND CARRIED BY
lJNANlM)US VOTE OF TIlE OJUNCIL. The following actions were
taken:
C.ATTY:
1. Moved to Regular Meeting Agenda;
2. March 1, 1989, invoice from Wohlforth, Arget-
singer, Johnson & Brecht for legal services totalling $162.60
was approved for payIIEnt;
C.ATTY:
3. Invoices from HTGP&B for legal services were
approved for payIIEnt as follows:
September 1988 - $18,371.67
October 1988 - $11,630.55
November 1988 - $10,375.70
December 1988 - $1,371.80
CON-II'ir :
4. Invoice from Brittain, Mersereau & Pent large for
legal services totalling $256.25 was approved for payment;
5. Modification No. 6 (changing the naIIE of the
contractor to reflect reorganization of the business) to the
Dawson contract for lobbying services was approved;
C.ATTY:
ABCB:
6. City Clerk was instructed to issue a letter of
nonobjection to the renewal of a liquor license as requested by
DREAMLAND Ba-1L;
f' ABCB:
7. City Clerk was instructed to issue letters of
nonobjection to the renewal of liquor licenses as requested by
AMERICAN lEGION CLUB POST m. 5 and GATEWAY UQmR & FOOD MART;
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PAGE 31
REGULAR MEETING - MARCH 13, 1989
VOLUME 24-
8. March 3, 1989, contract completion report regard-
ing the Construction & Rigging Contract No. CON-292 was noted
for information; and
9. Proclamations of the Mayor were noted for infor- PROCLAMATIONS:
mation as follows:
03/12-18/89 -- EMPLOY TIlE OLDER IDRKER WEEK
03/12-18/89 -- GIRL SCOUT WEEK
IX. PUBLIC HEARINGS:
None
X. PRESENTATIONS WITH PRIOR mTICE ONLY:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and Enactment:
1. Copies having been made available to the c. CODE/ ORD:
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, ENACITNG MISCELLANEOUS
"HOUSEKEEPING" REVISIONS TO TIlE SEWARD CITY
CODE.
Notice of public hearing as posted and published as
required by law was noted and the public hearing ,.ms opened; no
one appeared in order to be heard and the pub lic hearing was
closed.
NOll. MOVED TO ENACT ORDINANCE NO. 612; TIlE MJI'ION WAS
SECONDED BY DUNIW1.
O'BRIEN M)VED TO AMEND 1HE PROPOSED ORDINANCE AS TAXICABS/ORD:
RECCM1ENDED BY THE CITY ClERK TO REMOVE CI1Y COUNCIL OVERSIGHT
OF TIlE DESIGNATION OF TAXICAB ZONES; TIlE MJI'ION WAS SECONDED BY
MEEHAN AND CARRIED UNANlM)USLY.
TIlE QUESTION HAS CALLED ON TIlE MAIN MJI'ION AND TIlE
ORDINANCE WAS ENACTED BY UNANTI10US VOTE OF TIlE COUNCIL.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
j.-'I~
C.COUNCIL/ORD:
ELECTIONS/ORD:
PURCHASING/ORD:
(Amending
purchasing/
Bid Proced-
ures & Regs)
MGE 32
REGULAR MEETING - MARCH 13, 1989
VOLUME 24-
AN ORDINANCE OF TIlE CITY COUNCIL OF THE CITY
OF SEWARD, AIASKA, AMENDING CHAPTER 2.10 OF
THE SEWARD CITY CODE RELATIVE TO MEETINGS OF
THE COUNCIL.
Notice of public hearing as posted and published as
required by law was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
MEEHAN MOVED TO ENACT ORDINANCE NO. 613; THE MJrION
WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, ENACTING MISCEllANEOUS
REVISIONS TO TIlE SEWARD CITY CODE, TITlE 4,
ELECTIONS.
Notice of public hearing as posted and published as
required by law was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
HILTON M)VED TO ENACT ORDINANCE m. 614; TIlE MJrION
WAS SECONDED BY NOll. AND CARRIED UNANIMOUSLY.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AIASKA, REPEALING AND RE- ENACTING
TITlE 6 OF TIlE SEWARD CITY CODE, PURCHASING,
CONTRACTS AND PROFESSIONAL SERVICES.
Notice of public hearing as posted and published as
required by law was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing was
closed.
HILTON MOVED TO ENAGr ORDINANCE m. 615; THE MJrION
vJAS SECONDED BY SIMUTIS.
Hilton noted typographical errors on Page 1; the Clerk
stated that they would be corrected before the docurrent was
signed.
MEEHAN MOVED TO AMEND SECTION 6.05. 010 OF TIlE ORDI-
NANCE BY ADDING THE FCJLLCMING TO THE END OF TIlE FIRST SENTENCE:
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PAGE 33
REGULAR MEETING - HARCH 13, 1989
VOLUHE 2+
", AND PROVIDED THAT TIlE CITY MANAGER SHAlL NOTIFY THE
CITY COUNCIL AT ITS NEXT REGULAR MEETING OF ANY
PURCHASES BE'lWEEN $5,000 AND $10,000."
THE MOTION WAS SECONDED BY HILTON.
O'Brien questioned the need to raise the limit to
$10,000 and asked if there were sufficient purchases of neces-
sary city supplies to warrant the change. Royle stated that the
limit had not been changed in 15 or 20 years. Diener stated
that mmy purchases made by the City Shop and the Water/Sewer
Department are for equipment and parts falling between the
$5,000 and $10,000 range. In addition, the Engineering Depart-
ment could more cost effectively award small contracts to local
contractors if the need to bid these jobs could be eliminated
from the Code.
TIlE QUESTION WAS CAlLED AND THE M)TION CARRIED UNANI-
MOUSLY.
0' BRIEN M)VED TO POSTPONE ACTION ON THE ORDINANCE
UNTIL TIlE HARCH 28, 1989, MEETING; TIlE MarION WAS SECONDED BY
NOll. AND CARRIED UNANlM)USLY.
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF lliE CITY
OF SEWARD, ALASKA, AU1HORIZING THE EXECUTION
OF AN EQUIPMENT LEASE/PURCHASE AGREEMENI' BY
AND BE'IWEEN TIlE CITY AND SECURITY PACIFIC
BANK ALASKA, N.A., AND PROVIDING FOR RELATED
HATTERS .
HILTON MOVED TO APPROVE RESOLUTION NO. 89-022; TIlE
MarION WAS SECONDED BY NOll. AND CARRIED UNANIMOUSLY.
In response to a question from O'Brien, Royle stated
that the equipment would be shipped in about one week. He noted
that the printer was already on site due to miscOOIl1ln1ication
between one of the salesmen and the salesmm' s staff.
2. MOVED FRCM CONSENT CALENDAR. Copies having
been made available to the public, Gieseler noted by title only
a proposed resolution entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, ALASKA, APPROVING THE SOlE SOURCE
PURCHASE OF AN SSE RADIO lVIlliOUT FULL
UTILIZATION OF CITY BID PROCEDURES.
33
RESO/C.EQUIP/PUR-
CHASING/CON-
(Lease/Purchase
Agrmt--Computer)
PURCHASING/RESO:
(Purchase of
radio for Harbor/
Police)
r,!
'I':
'\PAGE 34
REGULAR MEETING - MARCH 13, 1989
VOLUME 2.
STMUI'IS M)VED TO APPROVE RESOLUTION NO. 89-021 ; TIlE
mTION WAS SECONDED BY MEEHAN.
Simutis asked why the purchase of the radio was "sole
source" . Schaefermeyer explained that the Police Departrrent has
already ordered a new conmmications system from Motorolla.
Motorolla has agreed to install the new Single Side Band radio
when it constructs the new console at no additional cost for
construction. In addition, the Motorolla SSB radio will be
compatible with all other conmmications equipment in the
dispatch area.
TIlE QUESTION WAS CALLED AND TIlE RESOLUTION WAS AP-
PROVED BY UNANIMJUS VOTE OF THE COUNCIL.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
None
XIV. CITY MANAGER REPORTS:
Gieseler introduced City Bond Counsel Eric Wohlforth
and Tom Klinkner and welcomed them to Seward.
Royle reminded the Council of the March 14 Work
Session scheduled to begin at 7:00 p.m. He also noted that he
had a photo album from the KATFA 1989 trip which was available
for viewing by anyone interested. He added that he has ordered
a copy of the video of the trip which he intends to present at a
joint Rotary/Chamber meeting. Royle said that he would invite
Katelyn Carrigan or the Governor's Office of International Trade
to attend that ID2eting.
Gates reviewed the contacts ffi9.de by city officials
during the KATFA 1989 trip. He stated that the trip had been a
worthwhile venture and he hoped to see results from the contacts
made in Korea in the near future.
XV. COUNCIL DISCUSSION:
NOll., one of the organizers of KATFA 1989, reported
that AlaskR'Was the first state in the Union to undertake
anything the scale of the Korea/Alaska Trade Fair. He said that
all of the participants seemed to have been satisfied with the
affair. He noted that the V. 1. P. reception had been attended by
the "creme de la creme" of Korean government and industry and
had been nationally televised during "prime tinE". He also
noted that Consul General Kang was present and had put forth
sOlIE feelers regarding a possible contract with the city to act
as its contact person/liaison in Korea.
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PAGE 35
REGULAR MEETING - MARCH 13, 1989
VOLUME 2+
NOll. said that he would be out of town and unable to
attend the two hospital work sessions. He stated that he shared
concerns regarding the Accounts Payable/Accounts Receivable
situation at the hospital. Noll noted that there was no reason
to rrove too quickly with any proposed changes to the hospital
structure.
NOll. suggested that the Council consider lowering the
speed limit on the Seward Highway north of the 35 MPH zone. He
noted that this portion of the highway is utilized by pedestri-
ans and those on bicycles.
SIMUTIS stated that the Seward EnhanceID2nt Association
had met on March 8 to begin preparations for Hyett-Palma's
upcoming visit in April. She stated that Yanez had ID2t with the
group concerning SEA's "greening of Seward" project. Simutis
said that SEA would be encouraging businesses and other property
owners to work on improving the appearance of their properties
this year through the planting or flowers, painting, etc.
SIMUTIS thanked the Parks and Recreation DepartIIEnt
for its program for school children during Spring Break.
HILTON stated that the trip to Korea was a success,
noting that the Seward delegation was organized and had managed
to get its message across. He stated that the city had made
several contacts which he hoped would bear fruit in the future.
O'BRIEN reported that he had received several com-
plaints from the public about srroking in the Police Department
dispatch area and asked the administration to look into this.
O'BRIEN asked for a status report on the Ferry/IMS
joint use dock. Diener stated that he had received a report
regarding an environIIEntal assessment which was being performed
by DOT. He noted that oor has federal matching funds available
for the project; however, he had nothing to report regarding
IMS's role in funding for the dock. He stated that the project
was rroving forward and was probably one or two years "down
stream" .
O'BRIEN also asked for a status report on the abate-
ment of public nuisances and accunulated junk. Diener reported
that the administration has started the abateID2nt process
already and has sent notices to those in violation with
instructions to clean up their areas following the spring thaw.
He noted that this is an on-going problem which the city will
continue to address.
DUNHAM reported that city officials in Korea had taken
questions from those visiting the booth who had been unable to
get answers elsewhere. She stated that the city wanted to build
a reputation of being helpful, and noted that answers to the
questions noted would be going out soon.
~f)
PAGE 36
REGULAR MEETING - MARCH 13, 1989
VOLUME 2~
DUNHAM stated that the tourism work session was a
success. She said that Mr. Cho, owner of the largest travel
agency in Korea, had already been to Seward and had included
Seward in his brochure he is putting together on Alaskan vaca-
tions and tours. She noted that several members of the travel
industry in Korea would be visiting Alaska in June, with Seward
scheduled to be its last stop. She said that the city planned
to be the rrost spectacular stop on the trip.
DUNHAM complimented Gates on his organization of the
city delegation ' s itinerary. She also thanked Noll for his
assistance in Korea and noted that the city had a great friend
and supporter in Suneel.
DUNHAM asked the
the slick alleys in town.
ment is working on them.
MEEHAN stated that Seward is well known in Korea
because of T. I. Kim, T. K. Kim, and others at Suneel. He noted
that because of Seward's association with Suneel, the delega-
tion's initial meetings with Korean contacts during this trip
had rroved beyond the usual formal "getting to know each other"
first meeting stage, and in many cases the delegation had
managed to get right to business discussions. He stated that
the city owes Noll and the other KATFA organizers a debt of
gratitude for the opportunity to participate in this event.
administration to do something about
Diener noted that the Street Depart-
GIESELER instructed the Clerk to write a resolution
thanking the KATFA 1989 organizers (Alaska/Korea Business
Council) for its part in organizing KATFA 1989.
GIESELER noted that he and Diener had testified in
Juneau concerning transmission line funding and had found
everyone to be supportive. In addition, he noted that he had
hand carried a letter to Juneau requesting funding for needed
hospital equipment.
GIESElER thanked the KATFA 1989 participants for their
hard work.
XVI. CITIZENS' DISCUSSION:
None
XVII.
COUNCIL AND Aa1IN. RESPONSE TO CITIZENS' CCM1ENTS:
None
XVIII .
ADJOURR1ENI' :
The ID2eting was adjourned at 8:50 p.m., and after a
brief recess, the Council reconvened in Executive Session to
37
PAGE 37
REGULAR MEETING - MARCH 13, 1989
VOLUME 2f.
I
discuss a matter which could adversely affect the finances of
the city.
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PAGE 37
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
1. CAll. TO ORDER:
I
The March 28, 1989, regular ID2eting of the Seward City
Council was called to order at 7: 30 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilmember Noll led the pledge of allegiance to the
flag.
IlL ROLL CALL:
Present were: Mayor Gieseler and Counci1members Dun-
ham, Hilton, Heehan, Noll and Simutis
(0' Brien was absent)
I
Present also: City Manager Royle, Deputy City Manager
Schaefermeyer, City Attorney Arvidson,
Interim Finance Director Gifford,
Manager of Engineering & Utilities
Diener, Electrical Engineer Anderson,
Administrative Assistant Martin, Parks
& Recreation Director Yanez, Deputy
Fire Chief Squires, Port Marketing
Director Gates, Hospital Administrator
Campbell, Harborrnaster Singleton,
Deputy Harborrnaster Ransom, KPB Assem-
bly President Sewall and City Clerk
Murphy
~8
PAGE 38
REGUIAR MEETING - MARCH 28, 1989'
VOLUME 24
SPECIAL ITEM:
A. Seward Enhancement Association Representative
Neil CanEron previewed for the Council SEA's recently completed
video presentation highlighting Seward. The video will be
entered into a national competition which could result in
national exposure over cable television. Gieseler thanked SEA
and Mary Hart of Seward Cablevision for the efforts Which had
been put forth to produce the tape.
INTRODUCTION OF GUESTS:
A. Gieseler introduced Richard W. Jones, newly
appointed Executive Director of Wesleyan Nursing Home.
IV. APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE MARCH 13, 1989, MINUIES
AS WRITTEN; TIlE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANll1OUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
HILTON MOVED TO APPROVE TIlE REGULAR MEETING AGENDA AS
PRESENTED; TIlE M:lTION WAS SECONDED BY mll. AND CARRIED UNANI:-
M)USLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President Jonathan
Sewall gave a verbal report of the March 21, 1989, assembly
meeting.
VII. CITIZENS' CCM1ENTS ON AGENDA ITEMS NOT SCHEDULED FOR
PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
PURCHASING/
RESO:
MEEHAN M)VED TO APPROVE THE CONSENT CALENDAR AS
PRESENTED; THE M:lTION WAS SECONDED BY SIMUTIS AND CARRIED
UNANlM)USLY. The following actions were taken:
1. Resolution No. 89-023, designating City Manager
B. Max Royle as the authorized representative relative to the
purchase of equipID2nt through the Alaska Surplus Property
Service, was approved;
C.ATTY:
2. March 14, 1989, invoice from Wohlforth, Arget-
singer, Johnson & Brecht for legal services regarding the
EquipID2nt Lease Purchase AgreeID2nt, said legal services total-
ling $3,655.25, was approved for payIIEnt;
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PAGE 39
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
3. ABCB notification of application for renewal of
liquor licenses as filed by Tony's Bar, Tony's Liquor Store and
Pioneer Bar was noted and the Clerk was instructed to issue a
letter of nonobjection;
4. The Clerk was instructed to schedule a work
session on Thursday, April 20, 1989, with Hyett-Palma to review
progress made by Seward Enhancement Association;
5. Notice of application for permit for Games of
Chance and Skill as filed by Pioneers of Alaska Igloo 419 was
noted for information;
6. The Fire DepartIIEnt's annual activity report for
CY 1988 was noted for information;
7. Fiscal Year 1989 budget calendar was noted for
information; and
8. March 22, 1989, ID21rorandum from Schaefermeyer
concerning the Geormx Draft Report was noted for information.
IX. PUBLIC HEARINGS:
A. Notice of public hearing as posted and published
as required by law regarding proposed amendrrents to the Small
Boat Harbor Boardwalk Leases, amending the lease rates and
bringing the leases under a five-year appraisal review, was
noted and the public hearing was opened; no one appeared in
order to be heard and the public hearing was closed.
X. PRESENTATIONS WITH PRIOR mTICE ONLY:
Gieseler noted that he had accompanied Councilmember
Noll and Phoenix Log reporter Tim Moffatt on a flight to view
the oil spill in Prince William Sound. He reported that it did
not appear that the city would be impacted; however, the city
wanted to be prepared to act if the oil should "come our way".
Noll concurred. Gieseler asked Royle to prepare a letter to the
Mayors ot Cordova, Valdez and Whittier expressing the city's
concern and offer to be of service to them.
XI. ORDINANCES AND RESOLUfIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing and EnactIIEnt:
1. Noll asked that proposed Ordinance No. 615
be postponed until later in the ID2eting so that Councilmember
O'Brien could participate in discussion and action. [SEE PAGE
42. ]
?,9
ABCB:
C.COUNCIL:
GAMES OF CH.&SK:
PUBLIC HEARINGS:
(Boardwalk
leaRe amendmts) I
4n
BOARDWALK/RE-
RESO:
HOSPITAL/PURCH/
RESO:
PAGE 40
REGUlAR MEETING - MARCH 28, 1989
VOLUME 24
C. Resolutions:
/
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF 1HE CITY
OF SEWARD, PJASKA, AU1HORIZING RENTAL AND
APPRAISAL AMENI:MENl'S TO BOAlIDtJALK LEASE
SITES m. 1, m. 2, NO.3, NO.4, AND m. 5.
NOll. M)VED TO APPROVE RESOLUTION NO. 89-024; TIlE
MarION WAS SECONDED BY SIMUTIS AND CARRIED UNANlM)USLY.
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, PJASKA, APPROPRIATING FUNDS TO
SEWARD GENERAL HOSPITAL FOR TIlE PURCHASE AND
INSTAlLATION OF A CENI'RAL CARDIAC MONITORING
SYSTEM.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-025; THE
MarION WAS SECONDED BY NOLL.
Meehan stated that the recent work session with the
Hospital Board had made him rrore aware of some of the problems
and needs of the hospital. He stated that the central cardiac
rronitoring system had been identified by hospital staff as its
top priority item for funding. He noted that purchase of the
CCM by the city might alleviate some of the concerns expressed
by hospital administration and board concerning the $60,000 in
data processing fees owed the city by the hospital.
In response to a question from Gieseler, Hospital
Board Chairmm Diener stated that the Board had voted to endorse
approval of the resolution as written.
Noll requested a short recess to review handouts
received just prior to the meeting.
RECESS: The meeting was recessed at 8:22 p.m. and reconvened at
8:30 p.m.
In response to a question from Noll, Campbell briefly
explained the need for the CCM.
THE QUESTION WAS CALLED AND 1HE RESOLUTION WAS AP-
PROVED WIlli FIVE "YES" VarES AND HILTON ABSTAINING. [Hilton is
an employee of SGH and, therefore, declared a conflict of
interest. ]
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PAGE 41
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolution
entitled:
A RESOLUTION OF TIlE CITY COUNCIL OF lliE CITY
OF SEWARD, ALASKA, AUlliORIZING THE AWARD OF
A NEmTIATED CONTRACT FOR SPRING CREEK
CORRECTIONAL CENTER WATER SYSTEM IMPROVE-
MENTS.
HILTON M:>VED TO APPROVE RESOLUTION NO. 89-026; TIlE
MarION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS VOTE OF
TIlE COUNCIL.
XII. UNFINISHED BUSINESS:
None
XIII. NEW BUSINESS:
A. MEEHAN MOVED TO FOlLCM TIlE AIMINISTRATION'S
RECCM1ENDATION AND REFER TCM STAUDENMAIER' S CLAll1 TO TIlE CITY'S
INSURANCE ADJUSTERS; THE M)TION WAS SECONDED BY Sll1UTIS AND
CARRIED UNANll10USLY.
41
PRISON/CON- 3,:1
RESO:
CLAIM FOR DAMAGE:
(Staudenmaier
Claim REFERRED
to Ins. Adj.)
B. HILTON M)VED TO AUTHORIZE TIlE CITY MANAGER TO FINANCE/CON-~3:
EXECUTE TIlE INVES'IMENI' EXECUTION SERVICES AGRIDlENl' WIlli FIRST
SOUTHWEST COHPANY; TIlE MOTION WAS SECONDED BY SIMUTIS.
Arvidson suggested that the city enter into a 2-year,
not as-year, agreerrent to comply with the City Code.
Noll stated that he would support approval of the
agreement, but requested that Council be given quarterly perfor-
mance reports by First Southwest.
TIlE QUESTION WAS CAlLED AND TIlE M)TION CARRIED UNANI-
MJUSLY.
C. MEEHAN MOVED TO RETAIN TIlE POLICY OF PASSING TIlE STATE REV SHRG:
STATE REVENUE SHARING ENTITLEMENTS AlDNG TO TIlE ENTITIES WHOSE
FACILITIES EARNED TIlE CITY THE CREDIT, PROVIDED THAT RECIPIENTS
EXECUTE AN AGREEMENT mAT TIlE MONIES WIll. BE SPENT IN ACCORDANCE
WITH STATE AND CITY REQUIREl1ENI'S; THE M)TION WAS SECONDED BY
HILTON AND CARRIED UNANIMOUSLY.
D. SIMUTIS MOVED TO INSTRUCT TIlE CLERK TO ADVERTISE
A PUBLIC HEARING ON TIlE NECESSITY OF ESTABLISHING AN ASSESSHENT
DISTRICT FOR ELECTRICAL SERVICE IN CAMELOT SUBDIVISION; THE
MarION WAS SECONDED BY DUNHAM AND CARRIED UNANlM)USLY.
XIV. CITY MANAGER REPORTS:
ROYLE reported that the city was embarking on a
city-wide clean-up caIq)aign. He stated that he wanted to begin
ASSESSMT DIST:
(Cl. to advert.
PH on Nec. of
Camelot E1Ac.
Asses. Dist.)
~/J.
PAGE 42
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
with a low-key, soft approach in an effort to get volunteer
compliance. Gieseler asked if the Harbor had looked into doing
something about the fish waste problem at the fish cleaning
station in the Boat Harbor. He stated that he would like to
have a recorrn:endation for improvement by the next Council
meeting.
ROYLE noted that a "Public Employees Appreciation
Dinner" , sponsored by Hennan Leirer, was plarmed for Friday
evening at the Elks Club. He stated that city employees Floyd
Ainsworth and Mike Yanez would receive awards.
TAKEN our OF ORDER:
Ordinances for Enactment:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF TIlE CITY COUNCIL OF TIlE CITY
OF SEWARD, AlASKA, REPEALING AND RE-ENACTING
TITLE 6 OF TIlE SEWARD CITY CODE, PURCHASING,
CONTRACTS AND PROFESSIONAL SERVICES.
SIMUTIS M)VED TO POSTPONE ACTION ON PROPOSED ORDINANCE
NO. 615 UNTIL TIlE MARCH 28, 1989, MEETING; TIlE MOTION WAS
SECONDED BY mll. AND CARRIED UNANIMOUSLY.
XV. COUNCIL DISCUSSION:
NOll. stated that Korean support of public art had made
Seoul a beautiful city. He suggested that the SanE could happen
in Seward and asked those interested to let the Council and
Administration know their feelings on this issue.
SIMUTIS asked for an update on Finance Director
selection. Royle reported that thirty-one applications had been
received. He stated that he and SchaeferIIEyer were reviewing
the applications and independently ranking them, adding that he
plarmed to begin scheduling interviews soon and hoped to make a
decision by June 1.
SIMUTIS reported that Seward EnhanceID2nt Association
was working on a couple of projects to go along with the city's
spring clean-up, including a plan to clean-up and enhance the
appearance of vacant lots in town. She encouraged everyone to
attend the April 20 work session with Hyett-Palma.
HILTON asked when the new computer system would be
installed. Schaefermeyer stated that the paperwork for the
lease/purchase agreement had been signed earlier in the day with
closing scheduled for March 30. He noted that the equipID2nt was
on order and some training had been scheduled for the end of
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PAGE 43
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
April. Schaefermeyer also noted that the city had received a
draft report on peripheral computer needs from Price/Waterhouse,
with the final report due soon. In response to Hilton's
question concerning status of the purchase of new vehicles and
equipment which was approved by the Council, Diener stated that
the grader and dozer had arrived and the vehicles were on order.
MEEHAN asked when road repairs were scheduled to
begin. Diener responded that the city would try to make asphalt
repairs when the plant across the Bay is operational.
DUNlW1 asked if any progress had been made on acquir-
ing signs for the highway to direct tourists downtown. Royle
responded that the ChatIDer of Ccmrerce is working on signs.
DUNHAM also reported that she had attended a Korean
FAM Trip ID2eting in Anchorage on Friday to continue plarming for
the upcoming visit of Korean travel agents and travel writers.
She stated that upon arriving, the Seward delegation found that
Seward had been eliminated from the tour, while Homer and others
that had not participated in KATFA 89 were scheduled stops. She
noted that after much discussion, the schedule was rewritten to
include Seward.
GIESELER stated that when the Council approved a
Deputy Finance Director position, it had been with the under-
standing that the Deputy would be capable of rroving right into
the Finance Director's position should the Finance Director
leave. He asked Roy Ie to remember this when making his selec-
tions for director of that department.
GIESELER stated that some members of the conmmity had
informed hlin that the corner stone of the Jesse Lee H0ID2 con-
tained a time capsule. He asked that the city arrange to have
the time capsule preserved should the owner of the property
decide to tear down the building.
GIESELER noted that the U. S. Coast Guard Cutter
"Mustang" had been lifted by the Shiplift for prop repair.
GIESELER asked about the status of the new road to the
elementary school site. Diener stated that Cottonwood Avenue,
west of Dimond, would be paved as part of the school construc-
tion project. That portion of Cottonwood between Dimond and the
Seward Highway was the city's responsibility, and there was not
money available at this time for construction and paving of that
road.
HILTON asked if DOT intended to put in a left hand
turn lane at the new intersection which would be created When
Cottonwood was extended to the Seward Highway. Diener stated
that he did not believe oor would add a turn lane initially.
44
PAGE 44
REGULAR MEETING - MARCH 28, 1989
VOLUME 24
In response to a question from GIESELER, Diener stated
that the city would accept the interior of the new Conmmity
Center on Tuesday, with the official dedication to be scheduled
around Senator Kerttula's next trip to Seward.
XVI. CITIZENS' DISCUSSION:
JONA1HAN SEWAlL, Forest Acres, stated that Homer is
currently having problems with Department of Environmental
Conservation over chmJping of fish carcasses into the Harbor. He
suggested that the city contact the Port of Homer to see how
they intend to handle the problem. Sewall also noted that the
Kenai Peninsula Borough Assembly is considering an ordinance
which would ban third party operators of Games of Chance and
Skill. He stated that this had become a big problem in the
Kenai/Soldotna area.
XVI1.
COUNCIL AND AlliIN. RESPONSE TO CITIZENS' CCM1ENTS:
None
XVIII .
ADJOURl'MENT :
The ID2eting was adjourned at 9:34 p.m.
~.e~,,;,-,,,~
Ha . Giese er
May
(City Seal)
PAGE 44
SPECIAL HEETING - MARCH 29, 1989
VOLUME 24
1. CAll. TO ORDER:
The March 29, 1989, special meeting of the Seward City
Council was called to order at 4:07 p.m. by Mayor Harry E.
Gieseler.
II. OPENING CEREMONY:
the flag.
III. ROll. CALL:
Councilmember Hilton led the pledge of allegiance to
Present were: Mayor Gieseler and Counci1members Dun-
ham, Hilton, Meehan, Noll and O'Brien
(Simutis was excused)
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PAGE 45
SPECIAL ~1EETING - MARCH 29, 1989
VOLUME 24
Present also:
~
City Manager Royle, Deputy City Manager
Schaefenneyer, Port Marketing Director
Gates, Fire Chief Gage, Deputy Fire
Chief Squires, Harbormaster Singleton,
Deputy Harbonnaster Ransom, Trade Board
Chainnan Dunham, Administrative Secre-
tary Jones and City Clerk Murphy
Andy Anderson, Anderson Tug & Barge;
John Baird and Kevin Robbins, Seward
Fisheries; Anne Castellina and Peter
Fitzrrorris, National Park Service; and
Lt. Greg Shelton, U. S. Coast Guard
Cutter Mustang
Others
IV. APPROVAL OF SPECIAL MEETING AGENDA
MEEHAN MOVED TO APPROVE TIlE SPECIAL MEETING AGENDA AS
PRESENI'ED; TIlE MarION \~AS SECONDED BY HILTON AND CARRIED UNANI-
MousLy.
V. till.,] BUSINESS:
A. Valdez Oil Spill - Potential effect on Resur-
rection Bay and city response to emergency situation.
Gieseler stated that Councilmember Noll had requested
the emergency rreeting and asked him to give a report.
Noll reported that the oil spill in Valdez could be as
close as three days away from impacting Resurrection Bay. He
stated that the reason for the ID2eting was to put together a
task force to prepare for the possible disaster.
Singleton informed the Council that there was a
2,000-foot oil containment boom available from the Coat Guard;
however, it would need to be shipped from Dutch Harbor. He
estimated that it could be in Seward on Friday, March 31.
Gieseler instructed the city administration to keep a
log of all action relating to the oil spill. Gieseler asked who
was responsible for damages; Ransom replied that Exxon is
responsible at this point. In response to a question from
Gieseler, Fitzrrorris stated that federal aid would not be
available until the President declared an emergency.
0' Brien asked what was being done at this time to
clean up the oil. Fitzrrorris stated that skinrners are in the
Sound gathering oil and dumping it into barges to be hauled
away. Castellina stated that the National Park Service is
sending an Incident Conmmd Team to Seward to work with the city
and other agencies on coordinating and planning a local re-
sponse.
45
EMERGENCY PREP:
(State of Emer-
gency DECLARED)
OIL SPILL
46
PAGE 46
SPECIAL MEETING - MARCH 29, 1989
VOLUME 24
Royle stated that it was important that the city and
the Park Service work together since both could be affected by
the spill.
Discussion ensued, and it was a consensus of those
present TO FORM AN EMERGENCY PREPAREDNESS TEAM CONSISTING OF
CITY, BOROUGH AND OTHER CONCERNED AGENCIES. Gage was selected
to head the team. It was further decided that THE TEAM WOULD
PURSUE ADDITIONAL OIL CONTAINMENT BOCM TO PROTECI' CRITICAL
HABITAT AREAS AND SAlMON STREAMS IN RESURRECTION BAY AND KENAI
FJORDS NATIONAL PARK. Gieseler stated that an Etnergency center
should be set up. Gage suggested that the city begin inmediate-
ly to line up all available resources.
Dunham suggested that an oil expert be retained to
advise the city and that the city and the Council be kept
informed of the latest information regarding the location of the
oil.
Gieseler stated that he would schedule a flight to
Valdez to speak to officials there and requested that Council-
member Noll and Andy Anderson accompany him.
MEEHAN MOVED TO DECIARE A STATE OF EMERGENCY IN THE
CI1Y OF SEWARD AND TO INSTRUCT TIlE CITY MANAGER TO PROCEED WIlli
EMERGENCY PROCEDURES; THE MarION WAS SECONDED BY NOll. AND
CARRIED vJIlli FIVE "YES" VOTES AND 0' BRIEN VOTING "NO".
O'Brien requested that a special meeting be scheduled
for 4:00 p.m., Thursday, March 30, 1989.
VI. CITIZENS' DISCUSSION:
None
VII. COUNCIL DISCUSSION:
None
VIII.
ADJOURNMENT :
The meeting was adjourned at 5:30 p.m.
-?~ ~.~~c.~
Patricia J. Jones . Giese er
Administrative Secretary Mayor
(City Seal)
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PAGE 47
SPECIAL HEETING - HARCH 30, 1989
VOLUME 24
1. CAll. TO ORDER:
The March 30, 1989, special rreeting of the Seward City
Council was called to order at 6:02 p.m. by Hayor Harry E.
Gieseler.
II. OPENING CEREMONY:
Councilrnember Hilton led the pledge of allegiance to
the flag.
IlL ROll. CALL:
Present were: Mayor Gieseler and Councilrnembers Dun-
ham, Hilton, Meehan, Noll and O'Brien
(Simutis arrived at 6: 08 p.m.)
Present also: City Manager Royle, Deputy City Manager
SchaeferIIEyer, Port Marketing Director
Gates, Fire Chief Gage, Harbormaster
Singleton and City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
NOll. HOVED TO APPROVE 'IRE SPECIAL MEETING AGENDA AS
PRESENTED; TIlE MarION WAS SECONDED BY HILTON AND CARRIED UNANI-
HOUSLY.
V. NEW BUSINESS
A. Agency Status Reports - Gage reported that the
evening before, Gates, Noll, Royle and he had worked late into
the night locating oil conta~nt boom. The boom was located,
and approval was obtained from Exxon to purchase approximately
10,000 feet of boom under Exxon purchase order. He noted that
delivery was scheduled for 5:00 p.m., March 31. In addition,
the city had arranged for a technical expert to arrive with the
boom to assist with deployment.
Kenai Fjords National Park Ranger Arme Castellina
reported that Dave Liebersbach and arrived with a 9-person
Incident Coordination Team to conduct a resource inventory along
the coast to ascertain what is likely to be affected by the
spill. Following the inventory, the Team was scheduled to work
with the U. S. Coast Guard to do whatever was necessary to
protect the resources.
Lt. Shelton, Skipper of the U. S. Coast Guard Cutter
"Mustang" , stated that the 2,000 feet of Coast Guard boom
identified the previous day would arrive in Seward on Saturday
at the latest.
Gage reported that the city staff had put together a
list of boats available to deploy the boom if necessary and
4~
PAGE 48
SPECIAL MEETING - MARCH 30, 1989
VOLUME 24
added that Job Services was arranging for the mmpower necessary
for deploYffi2nt. Gage also noted that he had on display photo-
graphs taken during the afternoon and had a video tape for
anyone interested in viewing it.
Royle noted that he had received a request from
Cordova asking the city to release its oil containment boom to
Cordova for protection of its fish hatchery. Royle also intro-
duced Bob Heavilin, Borough Emergency Management Coordinator.
IDTE: Simutis arrived at 6:08 p.m.
Gates stated that while the oil slick continued to
move, it was now estimated to be considerably rrore than sixty
hours before Resurrection Bay was likely to be impacted. Gates
reviewed the city's plans for shipping the 10,000 feet of boom
which Exxon had purchased for the city. He stated that there
was no guarantee that the boom would work, but it would slow the
oil down and allow time for collection of the oil. He noted
that Unitech (boom supplier) was continuing to seek additional
boom for the city. Gates emphasized the need for expert help in
deploYffi2llt and prioritization. He noted that Noll had arranged
for a Norwegian team of experts to come to Seward, and Exxon has
promised to provide technical assistance if the city needs it.
Gates noted that NOM officials and others predicted
that there was only a very rerrote possibility that Resurrection
Bay would be impacted by the oil spill. However, the city rrust
be prepared to respond should the worst happen.
Gates stated that he had ID2t with a representative of
Bette Cato's staff in Valdez and had been assured that Cato was
working on a second source of funding for emergency actions
taken by the city. He noted that Exxon and the state had
repeatedly stated that the city should not worry about reim-
bursement for costs incurred as a result of the oil spill.
Gieseler noted that the Council had been given a copy
of SB 247, appropriating $20 Million to cover such expenses to
rrnmicipalities and the state. He stated that Seward had been
promised at least $1 Million of that sum. In addition, he
related that Chief of Staff Gary Peska had sent a letter to the
city promising that the state would cover whatever city expenses
Exxon failed to reimburse. He added that Exxon officials had
promised to clean up any shore areas contaminated by the oil.
Gates stated that he continued to be concerned about
others attempting to preempt the city's boom. He noted that he
had received a priority listing from Bud Rice of the National.
Park Service's most critical areas needing protection. He
added, however, that no finn decision had yet been made as to
where boom should be deployed.
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PAGE 49
SPECIAL MEETING - MARCH 30, 1989
VOLUME 24
Peter Fitzrrorris, KFNP, stated that IMS biologist A.
J. Paul had suggested that it would probably be better to boom
critical salrron streams than to attempt to boom the entire Bay.
Noll suggested that the city concentrate its protection efforts
in two areas - sensitive spawning streams and quiescent areas.
Meehan stated that he had been in contact with Prince
William Sound Aquaculture. He noted that the Cordova area
hatchery appears to be safe at the present time; however, PWSAC
may need help protecting the hatchery soon.
Dunham stated that travel agencies, tour groups and
cruise ships need to be infonned that the city of Seward has not
been impacted. She expressed her concern that the publicity the
spill has received could have a serious adverse effect on the
city's tourist industry this year.
Fitzrmrris noted that the city might want to consider
inspecting and cleaning boats before they enter the Small Boat
Harbor to avoid secondary contamination from boats which have
travelled through the oil slick.
VI. CITIZENS' DISCUSSION:
None
VI1.
COUNCIL DISCUSSION
None
XVIII.
ADJOURNMENT :
The ID2eting was adjourned at 7:05 p.m.
~~e~.
Mayr
::,
'"',n
PAGE 50
REGULAR MEETING - APRIL la, 1989
VOLUME 24
I. CALL TO ORDER:
The April 10, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m.
by Mayor Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Dunham led the pledge of al-
legiance to the flag.
III.
ROLL CALL:
Present were: Mayor Gieseler & Councilmem-bers
Dunham, Hilton, Meehan, Noll, O'Brien and Simutis
Present also: City Manager Royle, Deputy
City Manager Schaefermeyer, City
Attorney Arvidson, Administra-
tive Assistant Martin, Electri-
cal Engineer Anderson, Parks &
Recreation Dept. Director Yanez,
Fire Chief Gage, Port Marketing
Director Gates, Harbormaster
Singleton, Hospital Director
Campbell, Police Chief Bencar-
dino, KPB Assembly President
Sewall and City Clerk Murphy
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE MARCH 28, 29, AND
30, 1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED
BY SIMUTIS AND CARRIED UNANIMOUSLY.
V. APPROVAL OF REGULAR MEETING AGENDA:
Gieseler requested the addition of a new Item
No. "B" to "Presentations with Prior Notice" - Presen-
tation by Chugach Alaska Corporation. Royle requested
the addition of Item No. "A" to "New Business"
Request for authorization to administratively approve
subleases of city property. Gieseler requested the
addition of Item No. "B" to "New Business n - Oil
update.
NOLL MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
Kenai Peninsula Borough Assembly President
Jonathan Sewall reported on the April 14, 1989, meeting
of the Assembly.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT
SCHEDULED FOR PUBLIC HEARING:
MARILYN REYNOLDS, 225 Sixth Avenue, Co-
chairman of the Seward Visitors Bureau, stated that she
had recently attended a State Chamber meeting in
Anchorage. She said that the Visitors Bureau wants to
promote Seward as a visitor destination on a year-round
basis. She stated that the SVB supported the Chamber's
plans to locate its visitor information center on the
Seward Highway where it would have high visibility.
She urged the Council to support the Chamber in its
efforts.
VIII.
APPROVAL OF CONSENT CALENDAR:
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-027, opening public
campgrounds to youth and school groups prior to the
official opening date, was approved;
Cfu~PGROUNDS/RESO:
2. Resolution No. 89-028, in opposition to
HB 226, regarding state administration of local
elections, was approved;
ELECTIONS/RESO:
3. April 6, 1989, memorandum from Murphy
regarding liquor license actions were approved as
follows:
Letter of nonobjection to the renewal of
liquor licenses as requested by THE WHEELHOUSE,
and VAN GILDER HOTEL was approved;
Letter of nonobjection to the transfer of
liquor license for NEW SEWARD HOTEL was approve;
Letter of nonobjection to the renewal of
liquor license as requested by YUKON LIQUOR STORE,
provided its tax accounts are brought current, was
approved; and
Letter of nonobjection to the renewal of
liquor license as requested by HARBOR DINNER CLUB,
with an explanation of utility charges dispute and
statement of utility account delinquency, was
approved;
ABCB:
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PRISON/CON-!4i:..
HARBOR BOARDWALK:
CON-/5'q
PETITIONS/C.
COUNCIL:
PRI SON / CON -.:324:..
CIT. DISC:
REGULAR MEETING - APRIL 10, 1989
VOLUME 24
4. Amendment No.2 to the Project Management
Agreement with DOT/PF, increasing compensation from
$350,000 to $400,000, was approved~
5. March 20, 1989, memorandum from Martin
recommending Council approval of the sublease of
Boardwalk Site No. 1 by Brad Snowden to Neil Cameron,
dba Post-A-Photo, was approved~
6. January 1989 Parks and Recreation Depart-
ment Monthly Report was noted for information~
7. Change Order No. 227 to the Samwhan
Contract for prison construction (providing credit for
permanent stains on the quarry tile in the APS kitchen
and Building No.2 and No.3 service areas, said credit
totalling $2,500) was noted for information~
8. Copies of letters to Theodore J. White
finding the petitions for recall of Mayor Gieseler and
Councilmembers Hilton, Meehan and O'Brien to be
insufficient were noted for information~ and
9. April 6, 1989, memorandum from Diener
recommending approval of a contract award to Klebs
Mechanical, Inc., in an amount NTE $59,138, for
remedial ventilation work at SCCC, was approved.
IX.
PUBLIC HEARINGS:
None
X. PRESENTATIONS WITH PRIOR NOTICE ONLY:
A. ANDY PATAPOFF, Mile. 3, Resurrection Road,
and CATHY CLARK, 201 Van Buren, representing the Seward
Chamber of Commerce, asked the Council to authorize the
city administration to proceed with lease negotiations
with the Chamber to allow it to locate its visitor
information center and offices on the site of the High
School sign on the Seward Highway. Clark distributed
a draft site plan to show where the building and
parking area would be located. Patapoff noted that the
Chamber Board had voted unanimously to bring this
request to the City Council. He further noted that the
building would be constructed using volunteer labor and
would be placed at this location on a trial basis only
to see if this new location would attract more visitors
than the Information Cache currently does. In response
to a question from the Council, Patapoff stated that
the Information Cache would remain in its current
location~ however it would
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
be utilized as a tourist attraction. He also noted
that the Chamber was investigating the best way to
provide public restrooms at the site.
Gieseler presented Clark with a copy of a
petition which had been distributed to the Council
prior to the meeting by Councilmember Dunham. Dunham
noted that the petition represented twenty businesses
in the downtown area opposed to relocation of the
visitor information center. She stated that taking the
information center and Chamber offices outside the
downtown core would send a message that the Chamber has
no faith in Downtown Seward. Dunham also stated that
the Information Cache manager had resigned because of
the Board's efforts to move the information center.
Clark denied this allegation, stating that McCauley had
resigned because the Board had rewritten her job
description to include expanded responsibilities which
she (McCauley) did not want to assume.
Dunham stated that the Chamber membership,
as a whole, did not agree with this proposed move.
Patapoff stated that, when this issue was presented to
the membership last year, those voting had voted to
move the information center. He added that, unless the
Chamber was given an opportunity to test its theory
that more visitors would be attracted to the new
location, no one would ever know if they were right or
wrong.
Noll asked why the Chamber had not followed
up on the Council's (and his) offer of funds for signs
and preparation of a Seward Information Video. Clark
stated that, since the Chamber still does not know
where its offices and information center will be
located, it has not ordered directional or advertising
signs.
Gieseler advised Patapoff to go back to the
Chamber membership and prepare a strong presentation
for the Council and the community.
Simutis stated that where the Chamber decides
to locate its offices and information center should not
be a city decision. She noted that, for years the
Chamber has been criticized for inaction; this desire
to make a change showed a concerted effort on the
Chamber's part to modernize and move forward. She
urged the Council to treat this lease as any other
business lease would be treated. Simutis added that
the logical place for the information center was in an
area tourists pass before they get downtown.
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
Dunham stated that she was not one of the
people who thought the Chamber had done such a bad job
in the past. She also cautioned the Chamber that
visitors to its information center would decrease year
after year since many of our visitors have been to
Seward before, and once you have visited the Cache or
other information center, there is no need for a return
visit.
Noll stated that he would feel more comfortable
making a decision if he knew more about the sign
campaign the Council had suggested previously. Royle
stated that the city had ordered directional signs
which would meet the approval of the Department of
Transportation for placement along the Seward Highway.
Noll stated that the Council was not interested in this
type of signage, but wanted signs that would attract
attention. In addition, he noted that he had offered
to provide funds for a video to be shown on the
passenger trains which are due to visit Seward 5 days
per week this summer. Noll stated that ARR Vice
President Knapp had indicated that, if the city
provided the equipment and maintained it, the Railroad
would allow the video to be shown on trips to Seward.
THE CONSENSUS OF THE COUNCIL WAS TO DIRECT THE
ADMINISTRATION TO PROCEED WITH LEASE NEGOTIATIONS AS
REQUESTED.
CIT. DISC:
B. PAUL TWEETEN, Timber Division Manager for
Chugach Alaska Corporation, Anchorage, stated that CAC
is negotiating a new lease with the city for an
additional 8 acres of property adjacent to and north
of its current leased lands in the Fourth of July Creek
Industrial Area. He stated that expansion into this
area would provide storage to accommodate increased
chip production and allow CAC to take advantage of a
favorable chip market. The property would also be used
for additional log storage, making it possible to add
one shift to its operations. Tweeten noted that this
added shift would increase the CAC work force by fifty
employees.
Tweeten noted that CAC planned to begin
operating the sawmill in late August or early Septem-
ber. In addition, it planned to construct a dock
facility this year and proceed with construction of a
cogeneration facility to both dispose of waste wood in
an environmentally sound manner and to provide adequate
power for operation of the mill. He estimated that CAC
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
would spend in excess of $20 Million at its Seward site
over the next three years.
In response to a question from the Council,
Tweeten stated that the initial phase of the planned
dock would be for exportation of chips only. He noted
that CAC would be using the newly constructed North
Dock to bring in logs and export finished product.
Tweeten commended the City Council and the
administration for the cooperation it had shown CAC
throughout this project. He asked that the Council
consider extending incentive lease provisions to the
newly requested lease either through making this parcel
an "add-on" to the original lease or by giving CAC
lease forgiveness for the first five years of the new
lease.
In response to a question from Noll, Tweeten
stated that CAC is still working on a possible particle
board plant operation; however the mill will be capable
of producing more chips than a particle board plant
could handle, thus leaving chips for export. He stated
that the most efficient way to transport the chips
would be via Alaska Railroad, and CAC is working with
the Railroad to try and work out a solution to this
transportation problem.
Meehan thanked Tweeten for the update. He
asked when CAC anticipated completion of the cogenera-
tion facility. Tweeten replied that construction would
probably start this year, and until the cogeneration
facility was "on-line", the mill would rely on generat-
ors to provide the power to operate its 1000 hp
machines.
RECESS: The meeting was recessed at 8:44 p.m. and
reconvened at 8:54 p.m. Gieseler noted that Hilton was
required to leave the meeting because of an emergency
at the hospital.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available
for the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SEWARD, ALASKA,
f"- ,-.
,
PAGE 56
HOSP.BOARD/ORD:
PURCHASING/ORD:
REGULAR MEETING - APRIL 10, 1989
VOLUME 24
AMENDING PORTIONS OF CHAPTER 2.30 OF
THE CITY CODE DEALING WITH THE COM-
MUNITY HOSPITAL BOARD.
SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE
NO. 616; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. (Public Hearing was schuduled for April
24, 1989.)
B. Ordinances for Public Hearing and Enact-
ment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, CREATING
A HOSPITAL DEPARTMENT AND AMENDING
PORTIONS OF CHAPTER 2.30 OF THE CITY
CODE DEALING WITH THE COMMUNITY HOSPI-
TAL BOARD.
Gieseler noted that this ordinance was sche-
duled for action only, with a motion to enact on the
floor.
In response to a question from Noll, Royle
stated that the hospital's utility debt has not yet
been paid. Gifford noted that the Board's Finance
Committee was scheduled to meet tomorrow to address
how best to arrange payment of this debt to the city.
He estimated that approximately $300,000 of the hospi-
tal's debt was "over 90 days". Meehan noted that the
Council and Board had addressed the debt at their
joint work session and had agreed that more time and
discussion was needed.
NOLL MOVED TO POSTPONE INDEFINITELY ACTION ON
PROPOSED ORDINANCE NO. 611; THE MOTION WAS SECONDED BY
GIESELER AND CARRIED UNANIMOUSLY.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REPEALING
AND RE-ENACTING TITLE 6 OF THE SEWARD
CITY CODE, PURCHASING, CONTRACTS AND
PROFESSIONAL SERVICES.
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
Gieseler noted that this ordinance was sche-
duled for action only; a motion for enactment was on
the floor.
O'Brien stated that he was still unconvinced
of the need to increase the city manager's spending
authority (without prior Council consent) from $5,000
to $10,000. He noted that the Council had been asked
to approve only eight expenditures between those two
amounts over the last year.
0' BRIEN MOVED TO AMEND THE PROPOSED ORDINANCE
BY REDUCING THE CITY MANAGER'S SPENDING AUTHORITY TO
$5,000; THE MOTION WAS SECONDED BY MEEHAN.
Schaefermeyer noted that the current Code
allows the manager to approve expenditures of up to
$10,000 in the electric utility. He urged the Council
to retain this provision if the intent of the amendment
was to maintain the status quo.
0' BRIEN AND MEEHAN AGREED TO A WORDING CHANGE
WHICH WOULD AMEND THE PROPOSED ORDINANCE LANGUAGE
REGARDING THE MANAGER'S SPENDING LIMITS TO REFLECT
CURRENT CODE PROVISIONS. THE QUESTION WAS CALLED AND
THE AMENDMENT FAILED WITH 0' BRIEN, MEEHAN AND NOLL
VOTING "YES" AND DUNHAM, GIESELER AND SIMUTIS VOTING
"NO".
O'BRIEN MOVED TO AMEND SECTION 6.10.115 OF
THE PROPOSED ORDINANCE TO REQUIRE THAT ALL CONTRACTS
BE APPROVED BY RESOLUTION OF THE COUNCIL; THE MOTION
WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
THE QUESTION WAS CALLED ON THE MAIN MOTION,
AND ORDINANCE NO. 615 WAS APPROVED, AS AMENDED, BY
UNANIMOUS VOTE.
3. Resolutions:
None
XII. UNFINISHED BUSINESS:
A. Royle stated that the memorandum from
Singleton had been prepared as a result of the Mayor's
remarks at the last meeting. He noted that the memo-
randum contained four different options to improve the
conditions at the fish cleaning rack this summer. He
recommended that Council approve Option No. I, the
least costly of the four.
57
SBH: (Fish Clean-
ing Rack Impr.)
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
NOTE:
Hilton returned to the meeting at 9:25 p.m.
In response to a question from O'Brien,
Singleton stated that a number of communities are
handling the fish waste just as Seward is doing now.
He reported that both Homer and Seldovia were having
problems with DEC and had been ordered to change the
manner in which they are handling fish waste. Single-
ton stated that the city had performed a water quality
test last summer and had found that the water in the
Harbor is safe enough to allow recreational swimming.
He added that the only real problem the Harbor is
currently experiencing is the odor problem that occurs
at low tide.
Simutis asked what Homer is doing now to meet
DEC requirements. Singleton stated that the waste is
collected in totes and shipped to the Reduction Plant
in Seward.
Hilton noted that the fish cleaning operation
at the Army Rec Camp works well and suggested that the
city use a modified version of this system. Singleton
stated that Option No. 4 in his memorandum would do
just that. Hilton added that he did not think the city
should wait until "DEC is breathing down our necks" to
do something about this situation in the Harbor. He
said that the city should see how much Option No. 4
would cost and should "do it right the first time".
O'Brien asked if it would be possible to dump
the waste in deeper water so that it did not create
such a mess on the beach. Singleton stated that
dumping in deeper water had caused the problem in
Homer.
Gieseler stated that a number of people had
approached him concerning this problem. He noted that
the city is selling itself as a first class tourist
destination point, and the city must do whatever is
necessary to clean-up the area around the fish clean-
ing rack before the tourist season opens.
GIESELER MOVED TO INSTRUCT THE CITY ADMINIS-
TRATION TO PROCEED WITH OPTION NO. 4 AND COME BACK TO
THE COUNCIL WITH A DESIGN PLAN AND ESTIMATE AT THE NEXT
MEETING; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
XIII.
NEW BUSINESS:
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
A. HILTON MOVED TO ALLOW THE CITY MANAGER LEASE PROCEDURES:
TO APPROVE THE SUBLEASE OF LAND AND OR BUILDINGS
INVOLVING CITY LEASES, SUBJECT TO CONFIRMATION OF THE
COUNCIL AT THE NEXT REGULARLY SCHEDULED MEETING; THE
MOTION WAS SECONDED BY DUNHAM.
Royle noted that the city had been approached
by two city lessees who wanted to sublease property to
entities involved with the oil spill. Schaefermeyer
indicated that both Alaska Treks & Voyages and the
Oldows had been approached by Norcom and VECO request-
ing the sublease of Small Boat Harbor property to
headquarter their operations. He added that both
Norcom and VECO were likely to need space for at least
five to six months.
Gieseler stated that the Council had just
recently lowered lease rates in the Harbor. In addi-
tion, if the city allowed Harbor buildings to be
utilized for office space, the city would lose sales
tax revenues usually generated through the operation
of tourist-oriented businesses in this location.
Gieseler suggested that VECO, Norcom and others bring
in portable facilities or lease space from the private
sector.
O'Brien and Dunham objected to allowing
offices to locate in the Small Boat Harbor, stating
that this area should be reserved for tourist-related
businesses. Dunham reminded the administration that
there was a lot of office space available downtown and
in the Phoenix Building which would be suitable for
businesses involved in the oil spill.
Simutis noted that parking is already becom-
ing a problem in the Harbor and questioned whether
there was sufficient parking available in that area to
accommodate tourists and business offices. She sug-
gested that even marine-related businesses did not need
to be headquartered in the Small Boat Harbor.
Meehan noted that the city had not yet
received a formal request from anyone to approve a
sublease and stated that the Council should review each
sublease as a separate issue. He objected to allowing
administrative approval of all subleases without prior
Council review and approval.
THE QUESTION WAS CALLED AND THE MOTION FAILED
WITH ALL COUNCILMEMBERS VOTING "NO".
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PAGE 60
REGULAR MEETING - APRIL 10, 1989
VOLUME 24
B. Oil Update. Gieseler noted that a number
of those involved in the oil clean-up operations have
moved to Seward. He stated that he did not want to
hamper this effort, but suggested that the administra-
tion should keep a close eye on what these organiza-
tions are doing. Gieseler said that one group had
wanted to discharge contaminated water from the bird
cleaning station into the city's sewer system. He
stated that the city should send a clear message that
the city will be prudent in what we allow operators to
do.
Dunham concurred. She noted that while she is
very supportive of efforts to save the birds and
otters, the city must be careful that it is not stuck
with an even greater problem later.
Meehan stated that the city needs to maintain
some sort of control. He added that he wanted all
players to let the city know what they are doing
through contact with Schaefermeyer.
XIV.
CITY MANAGER REPORTS:
ROYLE noted that representatives of the Small
Business Administration would be in town soon to meet
with those interested in obtaining SBA loans to cover
losses attributable to the spill. He also noted that
he had read in the newspaper an article about the Army
National Guard's proposed expansion into Alaska. He
stated that he had offered the city's assistance when
Guard representatives are in Seward assessing this
area.
ROYLE reported that HTGP&B would feature Seward
in an upcoming article in the "Municipal Advisor". In
addition, the city would be featured in the June issue
of the Alaska Chamber of Commerce magazine. Royle
further noted that he would be the subject of a piece
in the ICMA's June newsletter.
In response to a concern about cigarette smoke
in the Police Dispatch area expressed by O'Brien at the
last meeting, Royle stated that the redesigned Dispatch
Area would be glassed-in and would protect the public
from the smoke.
ROYLE reported that he had contacted DOT about
the possibility of lowering the speed limit within the
city limits. He also contacted an agency for a price
quote for an advertising/promotion campaign for the
city; the annual price quoted was $50,000.
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
Finally, Royle thanked the Council and staff for the
condolences extended during the recent loss of his
mother.
GATES reported that the city is still ac-
tively involved in the Navy Homeporting effort. He
also reported that Mr. Che would be in town on April
12 to further discuss the proposed chopstick factory.
Gates stated that he would report back to the Council
at the next meeting.
GATES said that he was continuing to negoti-
ate with CAC for an additional lease without lease
incentives. Following these negotiations, he would
begin to discuss a commodities agreement with CAC to
cover product moved across the North Dock. He noted
that if CAC uses the North Dock through 1991, the city
will be able to repay the bonds sold for construction
of that dock.
GATES stated that S. J. Lee would be in
Alaska in May to begin discussions of a possible joint
venture with CAC for construction of a particle board
factory at SMIC.
In response to a question from Gieseler,
Royle stated that he would be leaving the next day for
a one-week vacation. He noted that Diener had already
left for a two-week vacation and Gifford was scheduled
to leave on April 17 for two weeks of training.
Gieseler objected to allowing so many high level
employees to be away from the city at the same time.
He noted that, with only twenty days or so remaining
in the legislative session and with funding for the
needed transmission line not yet approved, Diener
should be present to shepherd the bill through. Royle
noted that he was confident that the staff left in
Seward could cope with whatever might come up.
XV.
COUNCIL DISCUSSION:
DUNHAM reported on the most recent FAM Tour
meeting. She also stated that the city manager had
not been able to take leave when his mother passed away
and said that she would not judge him too harshly no
matter what he decided to do concerning his upcoming
leave.
SIMUTIS asked when the campgrounds would be
opening. Royle noted that they were due to open May
15; however the winter camping area is currently open
and all campers are being directed to that area.
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REGULAR MEETING - APRIL 10, 1989
VOLUME 24
Simutis also asked when the SBH parking regulations
would go back into effect. Gieseler stated that this
would happen before the tourist season begins.
NOLL commended Gates, Gage, Squires and others
for their efforts during the recent state of emergency.
In reference to the requested subleases in the SBH,
Noll stated that he would not oppose any sublease which
made good business sense and did not violate the tenor
of the SBH.
another
roadway
GIESELER noted that the city needs to send
letter to Foodland to ask that it clean-up the
across from the store.
XVI.
CITIZENS' DISCUSSION:
ANDY PATAPOFF, Mile .3, Resurrection Road,
stated that the Council should bear in mind that the
Chamber of Commerce is a private business. He noted
that, when the original vote on moving the information
center was taken, the Chamber had 104 paid members.
Patapoff added that, in seeking a new location for the
information center and offices, the Board was only
doing what it thought was in the best interest of the
Chamber.
XVII .
COUNCIL & ADMIN. RESPONSE TO CIT. COMMENTS:
None
XVIII. ADJOURNMENT:
The meeting was adjourned at 10:35 p.m.
~-
e An ~/s;.
H E. Gieseler
Mayor
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PAGE 63
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
1.
CALL TO ORDER:
The April 18, 1989, special meeting of the
Seward City Council was called to order at 12:10 p.m.
by Mayor Harry E. Gieseler
II .
OPENING CEREMONY:
Vice Mayor Meehan led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
and Simutis (Noll and O'Brien
were excused)
Present also: City Manager Royle, Deputy
Ci ty Manager Schaefermeyer,
Fire Chief Gage, Administra-
tive Assistant Martin, Port
Marketing Director Gates and
City Clerk Murphy
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS
AND UNANIMOUSLY CARRIED.
V.
NEW BUSINESS:
A. oil Spill/Containment & Clean-up Effort
in Resurrection Bay. Schaefermeyer noted that he had
invited Exxon representative Cal Sikstrom to give the
Council an overview of Exxon's local organizational
efforts and its on-going activities. In addition, Lt.
Commander Heath, U.S.C.G. Marine Safety Office, was
present to give an overview of Coast Guard operations.
CAL SIKSTROM, representing Exxon, stated that
he was an Imperial Oil Ltd. employee from Canada who
had come to Seward at the request of Exxon to oversee
its local assessment and clean-up operations. He said
that since his arrival on April 2, he had worked
closely with the city and the National Park Service and
with the MAC (Multi-Agency Coordination) Group.
Sikstrom reported that oil has started to make its way
up Resurrection Bay, with the first small band reported
at 8:30 a.m. the day before. He stated that Fourth of
July Creek has been "boomed" , and Exxon's intent
remains to protect as many areas as possible through
the deployment of containment boom.
63
OIL SPILL: (Up-
date)
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SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
Sikstrom stated that, in an attempt to keep
the oil from the shoreline, several boats with absor-
bent pads had been dispatched yesterday. He noted that
the MAC Group had received a report this morning that
a small sheen and some patches of mousse had been
spotted in the Bay, but no oil had been seen at Caines
Head. Sikstrom also noted that the skimming operation
at Agnes Cove was on-going. Sikstrom said that he had
instructed VECO to patrol the shoreline on foot daily
to pick up oil contaminated birds and sea mammals to
keep them from becoming part of the food chain and thus
a hazard to other animals and birds.
In response to a question from Gieseler,
Sikstrom stated that deflection booming was difficult
in a bay like Resurrection. He added that this was
potentially feasible, given enough boom, some way to
pick up the oil on shore, and a site for disposal.
Meehan asked if Exxon or VECO had devised a
method of dealing with contaminated water from the bird
and marine mammal cleaning facilities. Sikstrom stated
that they would catch all contaminated water in
containers for disposal at another location.
Dunham stated that there was some concern that
workers on the beach had been told not to talk to the
press or to local citizens. Sikstrom stated that he
was not aware of any directive from Exxon or VECO to
that effect; however, he stated that, often, the person
in the field is not as knowledgeable about the overall
situation as someone at headquarters who has the whole
picture.
Simutis asked if the NBC News story concerning
the importation of approximately 4,000 people to clean-
up the oil was correct. Sikstrom stated that he was
focusing on the Seward effort and was not privy to
information about the area-wide clean-up plans. He
promised to pass along the Council's concerns about
local hire. Schaefermeyer noted that the news story
in question had quoted the Exxon plan for clean-up in
Valdez and Prince William Sound.
Meehan asked if Exxon had begun to address the
developing housing problem. Sikstrom said that Exxon
is considering establishing work camps if necessary.
LT. COM. STEVEN HEATH, representing the
U.S.C.G. Marine Safety Office in Anchorage, stated that
the Coast Guard is the federal agency responsible for
responding to incidents such as the oil spill. He
noted that the U.S.C.G. had worked with the MAC Group
I
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65
PAGE 65
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
in prioritizing areas for protection through booming.
Heath stated that, as of last week, Exxon had taken on
responsibility for maintaining the deployed boom, and
the Coast Guard was now monitoring this maintenance
activity.
Heath noted that two Navy skimming vessels
are in the Bay in an attempt to mitigate any damage to
the shoreline, adding that 10-15 thousand gallons of
oil had been collected at the mouth of Resurrection Bay
as of last night. He stated that the Coast Guard's
primary concern is to see that oil is being removed
from Resurrection Bay.
Schaefermeyer reported that Gage had surveyed
the skimming operations and the beaches earlier in the
day aboard the Harbor boat and had found no evidence
of fouling of beaches. He noted that the only shore-
line fouled thus far was the Afognak beach and an area
of beach north of the Chugach Alaska Corporation
sawmill site.
At the request of Dunham, Gates relayed his
opinions concerning the city's role in the mitiga-
tion/clean-up process. He stated that the city could
choose a mitigation strategy rather than a clean-up
strategy. Gates contended that the vast majority of
the oil could be collected before it reached the
beaches within the city if the city chose that as a
priority. He added that no one other than the city
would step forward and take a warlike attitude of
protecting Seward. He asserted that there had been
too much talk of resources when the first question
should have been what do we need to do to accomplish
our objective. Gates also stated that the city needs
its own independent technical experts to advise the
city on the sufficiency and adequacy of Exxon's and the
Coast Guard's efforts and to look at the correctness
of the information coming from Exxon. Gates noted that
his opinion was a minority view and did not represent
the feelings of the administration.
Dunham stated that she had believed from the
beginning that the city should not give up its leader-
ship role as long as an emergency existed. She stated
that the city must take a more active role so that it
could "stay on top of the situation."
VI.
CITIZENS' DISCUSSION:
JIM WALTERS, Moose Pass, stated that he was
a commercial fisherman. He claimed that those involved
in the clean-up operations were not hiring locally, but
were "hiring off the street". He stated that this was
nn
PAGE 66
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
not fair to area residents and asked the Council to do
something about it.
VI.
COUNCIL DISCUSSION:
SIMUTIS said that she had heard that black cod
and halibut seasons might be closed as a result of the
spill. Schaefermeyer promised to check this with Fish
and Game. In response to her question concerning
cleaning of contaminated boats, Sikstrom stated that
a boat decontamination center had been set up, and the
Harbormaster had the authority to insist on decon-
tamination of any boat coming into the Harbor.
HILTON stated that he agreed with Dunham. He
said that he was appalled that enough oil to foul the
beach had managed to get all the way into the Bay
without being spotted. He stated that the city should
get more involved in the decision making process.
MEEHAN concurred. He noted that he thought
the city's highest priority had always been to protect
the beaches at any cost. He stated that the city needs
to "get back on top of things."
GIESELER instructed the Clerk to prepare a
resolution stating that the city's number one priority
was the protection of beaches and streams within the
city. He further instructed Murphy to call a special
meeting for 4:00 p.m. for approval of the resolution.
VII 1.
ADJOURNMENT:
The meeting was adjourned at 12:55 p.m.
~"
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Mayor
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PAGE 67
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
1.
CALL TO ORDER:
The April 18, 1989, special meeting of the
Seward City Council was called to order at 4:07 p.m.
by Mayor Harry E. Gieseler.
II. OPENING CEREMONY:
Councilmember Simutis led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan
and Simutis (Noll and O'Brien
were excused)
Present also : City Manager Royle, Deputy
City Manager Schaefermeyer,
Port Marketing Director Gates
and City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
SIMUTIS MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
V.
RESOLUTIONS:
A. Copies having been made available to the OIL SPILL/RESO:
public, Gieseler noted by title only a proposed (Setting City
resolution entitled: Priorities)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SEWARD, ALASKA,
SETTING PRIORITIES FOR OIL CON-
TAINMENT AND CONTAMINATION MITIGA-
TION.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
029; THE MOTION WAS SECONDED BY HILTON.
HILTON MOVED TO AMEND SECTION 1 OF THE
RESOLUTION BY DELETING "TO PROTECT" AND SUBSTITUTING
IN ITS STEAD "THE PROTECTION OF"; THE MOTION WAS
SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
Meehan stated that he assumed it was under-
stood that the city would now have some sort of
leadership role in what is being done, and that Exxon
and its subcontractors would involve Gage, Gates and
Schaefermeyer.
m~
PAGE 68
OIL SPILL/RESO:
(Urging Local
Hire)
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
In response to a question from Hilton, Gieseler
stated that the city remained in a state of emergency.
Dunham stressed the importance of documenting what is
being done.
THE QUESTION WAS CALLED, AND RESOLUTION NO. 89-
029 CARRIED BY UNANIMOUS VOTE OF COUNCIL.
B. Copies having been made available to the
public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, URGING
EMPLOYERS INVOLVED IN OIL CONTAINMENT
AND CLEAN-UP TO HIRE LOCALLY.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
030; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY.
Gieseler instructed Murphy to copy Exxon,
VECO, Norcom, and the city's legislators in Juneau and
the Congressional delegation in Washington, D. C.,
with the two resolutions approved by the Council.
VI.
CITIZENS' DISCUSSION:
BOB GLORIOSO, 250 Commercial Drive, Anchorage,
stated that he was representing Laborers Local No.
341. He said that the Union had an agreement with
VECO to hire both Union and non-union employees on a
50-50 basis. He stated that the Local had hired a
couple of area residents to help them determine who
the local Seward residents are in order to give them
first opportunity for hire. He noted, however, that
he felt the Union was being skipped over during the
past week or so. Gieseler thanked Glorioso for coming
forward.
VII.
COUNCIL DISCUSSION:
MEEHAN stated that he had looked into Simutis'
question concerning the black cod and halibut closures
and had found that there had been no move as yet to
close any of the fisheries due to the oil spill. He
noted that the Yakutat fishery had been closed because
the quota had been reached, but the fishermen have now
relocated to another area.
GIESELER noted that he would be having lunch
with U.S.C.G. Admiral Yost on Wednesday and would
69
PAGE 69
SPECIAL MEETING - APRIL 18, 1989
VOLUME 24
I
proceed from there to Juneau to lobby for the Trans-
mission Line funding.
VIII .
ADJOURNMENT:
The meeting was adjourned at 4:24 p.m.
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PAGE 69
------------------------------------------------------
VOLUME 24
REGULAR MEETING - APRIL 24, 1989
CALL TO ORDER:
I.
The April 24, 1989,
Seward city Council was called
Mayor Harry E. Gieseler.
regular meeting of the
to order at 7:30 p.m. by
II.
OPENING CEREMONY:
Councilmember Dunham led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll, O'Brien and Simutis
Present also: City Manager Royle, Deputy City
Manager Schaefermeyer, City
Attorney Arvidson, Port Market-
ing Director Gates, Interim
Finance Director Gifford,
Administrative Assistant Martin,
Parks & Recreation Dept.
Director Yanez, Fire Chief Gage,
Deputy Fire Chief Squires,
Hospital Administrator Campbell,
Utility Engineer Anderson,
I
70
PRESENTATIONS:
(Don Earl -
DARE Program)
PAGE70
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
Harbormaster Singleton, Deputy
Harbormaster Ransom, Police Chief
Bencardino and City Clerk Murphy
SPECIAL PRESENTATIONS:
Gieseler presented Police Lt. Don Earl with a
plaque and letter commending him for the important role
he played in initiating the Seward D.A.R.E. program in
Seward schools. Gieseler noted that Seward was the first
communi ty in the state to offer this innovative drug
education program to youth.
IV. APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE APRIL 10, APRIL
18 (NOON) AND APRIL 18 (4:00 P.M.), 1989, MINUTES AS
WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
BY UNANIMOUS VOTE OF COUNCIL.
V.
APPROVAL OF REGULAR MEETING AGENDA:
GIESELER MOVED TO MEET IN EXECUTIVE SESSION
IMMEDIATELY FOLLOWING THE CLOSE OF BUSINESS IN ORDER TO
DISCUSS THE IBEW'S PETITION TO REPRESENT HOSPITAL
EMPLOYEES AND TO DISCUSS A PERSONNEL MATTER; THE MOTION
WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
HILTON MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS
AND CARRIED UNANIMOUSLY.
VI. BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall was not present and no report was given.
VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
Steve Fortelni, Manley Hot Springs, asked to
speak in behalf of representatives of a Japanese firm
visiting from Anchorage. Gieseler noted that this
presentation would have to wait until "Citizens' Discus-
sion".
VIII.
APPROVAL OF CONSENT CALENDAR:
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY. The following actions were taken:
,s) :1
I
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PAGE 71
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
1. Resolution No. 89-031, authorizing an
early opening of public campgrounds in the Waterfront
Park, was approved;
2.
participation
was approved;
Resolution No. 89-032, authorizing
in the state Day Care Assistance Program,
3. Resolution No. 89-035, urging the Legisla-
ture to appropriate funds for preparation of an Environ-
mental Impact statement for Navy Homeporting in Alaska,
was approved;
"'1
4 .
CAMPGROUNDS/
RESO: (Early
Opening Apprd)
DAY CARE/RESO:
NAVY HOMEFORTG/
RESO:
OIL SPILL/LEAS-
ES/RESO:
4. Resolution No. 89-036, authorizing a
temporary sublease of RE-073 by James Pruitt, dba Seward
Ships Chandlery, to VECO, was approved;
5. April 19, 1989, memorandum from Martin RE-072:
recommending Council approval of the sublease of RE-072
by Kenai Fjords Tours, Inc., to the U. S. Dept. of the
Interior, National Park Service, was approved;
6.
Mersereau &
$458.85, was
February 28, 1989, invoice from Brittain,
Pentlarge for legal services totalling
approved for payment;
7. March 31,
Mersereau & Pentlarge
$44.75, was approved for
1989, invoice from
for legal services
payment;
Brittain,
totalling
8. April 3, 1989, invoice from Wohlforth,
Argetsinger, Johnson & Brecht for legal services totall-
ing $2,061.89, was approved for payment;
9. April 5, 1989, invoice from Wohlforth,
Argetsinger, Johnson & Brecht for legal services totall-
ing $90.83, was approved for payment;
10. April 12, 1989, sales tax report for the
Fourth Quarter of 1988, as filed by Gifford, was noted
for information;
11. April 10, 1989, memorandum from Diener
noticing award of a contract for handicap improvements
at City Hall was noted for information; and
12. April 19, 1989, letter from Louis W.
Nauman III, owner of the Marina Motel, thanking the Water
and Electrical Utility employees and the Building
Inspector for their help and responsiveness during the
Motel's recent construction project was noted for
information.
C.ATTY:
C.ATTY:
C.ATTY:
C.ATTY:
SALES TAX:
C. HALL: (Handi-
cap Improvement!
7?
PUBLIC HEARINGS/
BOARD OF ADJ:
(Stout Appeal)
PAGE72
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
IX. PUBLIC HEARINGS:
A. Notice of public hearing, as posted and
published as required by law, regarding the Board of
Adjustment Hearing on Appeal of Planning Commission
denial of a Conditional Use Permit to construct a 24-unit
Farm Home Administration approved apartment complex in
Jesse Lee Heights, as filed by Ken Stout, RTR Develop-
ment, was noted and the public hearing was opened.
JEAN VAN DOHRMAN, 1405 West 16th, Anchorage,
99501, representing RTR Development, urged the Council
to uphold the appeal. Ms. Van Dohrman read a prepared
statement which she had copied for the Council. Gieseler
noted that the statement would become a part of the
record of appeal.
MEEHAN MOVED TO MEET IN EXECUTIVE SESSION
FOLLOWING THE CLOSE OF BUSINESS TO DELIBERATE AND PREPARE
FINDINGS FOR RATIFICATION AT THE MAY 8, 1989, MEETING;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE
"YES" VOTES AND O'BRIEN AND NOLL ABSTAINING.
X.
PRESENTATIONS WITH PRIOR NOTICE:
None
XI. ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, RELATIVE
TO MUNICIPAL OFFICIALS' COMPLIANCE
WITH AS 39.50.
NOLL MOVED TO INTRODUCE PROPOSED ORDINANCE NO.
617; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANIMOUSLY. (Public hearing was scheduled for May 8,
1989. )
B. Ordinances for Public Hearing & Enact-
ment:
HOSPITAL BOARD/ 1. Copies having been made available to
ORD: the public, Gieseler noted by title only a proposed
ordinance entitled:
I
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Ii{
PAGE 73
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 2. 30 , ARTI CLE 1, COMMUNITY
HOSPITAL BOARD.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened.
KEITH CAMPBELL, Seward General Hospital Ad-
ministrator, 1910 Forget Me Not circle, asked if it
would be possible to amend section 2.30.112 which re-
quired that all meetings of the Board be held in Council
Chambers. He stated that it was much more convenient
for hospital staff to attend meetings at the hospital.
He also suggested that the meeting time and place be set
by resolution in order to make it easier to change dates
and times in the future.
AL LAMBERSON, Mile 6.3, Seward Highway, asked
if provisions allowing executive sessions for the Board
had been considered. Arvidson stated that he has writ-
ten a suggested amendment to the ordinance which would
allow the Board to meet in executive session in accor-
dance with medical staff bylaws or approved Board pro-
cedures.
MEEHAN suggested that the Board meet twice
monthly, once in Council Chambers and once at the Hospi-
tal. O'BRIEN noted that evening meetings might make the
meetings more convenient for hospital staff. GIESELER
stated that evening meetings would probably make the
meetings more accessible to the public. SIMUTIS con-
curred, stating that all Hospital Board meetings should
be held in the evening, and she suggested starting them
at 7:00 p.m. LAMBERSON stated that he would ask the
Board to designate a day which was convenient to it and
bring the Board's recommendation back to the Council.
NOLL asked about the status of the money still
owed the city by the hospital. LAMBERSON noted that a
budget hearing had been scheduled for the next evening
(April 25), and this would be a topic of discussion at
that time. He stated that one option would be for the
city to credit the hospital for the amount of the one
percent sales tax which had not been requested by the
Hospital over the past few years, plus the additional
Revenue Sharing monies which the city had received as a
result of incorporating hospital revenues into the
city's "locally generated revenues" upon which state
Revenue Sharing was based. He contended that this
credit would "clear the books".
"':'1'.
PARKS & REC DEPT/
RESO: (Appropri-
ating funds for
park irnprvrnts)
PAGE74
VOLUME 24
REGULAR MEETING - APRIL 24, 1989
No one else appeared in order to be heard, and
the public hearing was closed.
MEEHAN MOVED TO ENACT PROPOSED ORDINANCE NO.
616; THE MOTION WAS SECONDED BY SIMUTIS.
MEEHAN MOVED TO POSTPONE ACTION ON THE PROPOSED
ORDINANCE UNTIL THE MAY 8, 1989, MEETING; THE MOTION WAS
SECONDED BY SIMUTIS AND CARRIED WITH SIX "YES" VOTES AND
HILTON ABSTAINING.
C. Resolutions:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPRO-
PRIATING FUNDS FOR PARK BEAUTIFICA-
TION AND IMPROVEMENT PROJECTS.
O'BRIEN MOVED TO APPROVE PROPOSED RESOLUTION
NO. 89-033; THE MOTION WAS SECONDED BY HILTON.
Hilton noted that Yanez's memorandum indicated
that blue spruce trees would be planted in the Water-
front Park area. He asked if the administration had
researched this tree's adaptability to the salt air
atmosphere. Yanez noted that he had done a considerable
amount of research regarding this issue, consulting with
Anchorage Parks personnel and the professional staff in
the Horticultural Department of the cooperative Exten-
sion Service. He stated that his research indicated
that the blue spruce will do well in the climate and
soil conditions in the waterfront. In addition, the
trees would be four to seven feet in height when plant-
ed, making an immediate visual impact on the area.
In response to a question from Dunham, Yanez
stated that he had anticipated some vandalism and other
loss of the flowers his staff would be planting. He
added that this first year would be a learning experi-
ence, but promised that the gardens would improve over
the years.
Yanez noted that he anticipated recouping the
requested funds from campground profits this summer.
Meehan complimented Yanez on the project and stated that
he felt this was money well spent.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
I
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PAGE 75
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING ELECTRICAL UPGRADE IN THE
SMALL BOAT HARBOR AND APPROPRIATING
FUNDS.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
034; THE MOTION WAS SECONDED BY HILTON.
Meehan noted that the resolution stated that
funds originally appropriated to purchase snow machines
for the Electric Utility were to be used for part of the
Harbor electrical upgrade. He stated that during last
year's budget process, the administration had contended
that the snow machines were badly needed. Anderson
replied that, after much thought, he had determined that
it would not be wise to expect those untrained in the
use of snow machines to use them for line patrol. He
added that outages generally occur during times of wet,
heavy snow, when a snow machine would not be the best
mode of travel. Anderson stated that the city would
consider leasing machines in the event they were needed
in an emergency.
In response to a question from o'Brien, Schae-
fermeyer stated that any unexpended funds would revert
back to Fund Balance at the end of the fiscal year.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A TEMPORARY DOCK PERMIT FOR THE
OPERATION OF A VESSEL DECONTAMINA-
TION FACILITY.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-037;
THE MOTION WAS SECONDED BY DUNHAM.
In response to a question from Noll, Schaefer-
meyer stated that the site was located on the east side
of "X" Float on the breakwater side where the Army Rec
boats are berthed in the summer. He stated that the
agreement would expire May 15 at which time another
location would be sought.
7r1
SBH/ELEC.DEPT/
RESO: (Appropri-
ating funds for
electrical up-
grade in SBH)
OIL SPILL/DOCK
USE PERMIT/RESO:
(Temp. DUP to
VECO for vPRspl
decontaminatj()n
center)
-~
f
PAGE76
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
XII.
UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
None
XIV. CITY MANAGER REPORTS:
A. Royle noted that a new trolley car service
would be initiated in Seward beginning the first weekend
in May. Gieseler suggested that the city, Chamber of
Commerce and Seward Enhancement Association conduct a
ribbon-cutting ceremony on opening day.
Royle noted that he had attended the state
Chamber of Commerce meeting in Anchorage.
The city manager also noted that he had met
with Dana Brockway, Director of the Alaska visitors
Association, and had learned that tourist reservations
statewide have been dropping off as a result of the oil
spill. The AVA and the state are currently trying to
acquire funds from Exxon to conduct a campaign to coun-
ter the negative press the state has been getting
"outside".
Royle stated that he is working on production
of a tourism video for the city and noted that some
filming would take place Memorial Day weekend.
Royle said that the Tampa Tribune had asked
him to write an article for its Sunday Travel Magazine
and noted that this article focusing on Seward would
reach a very large audience.
The city manager noted that Yanez had written
letters to the major Caravans to let them know that the
city's beaches are clean and inviting them to Seward this
summer.
Royle stated that the city clean-up campaign
was underway and noted that all junked automobiles have
now been removed from city rights of way. In addition,
letters have been sent to private property owners in
violation of city ordinances regarding junk and debris.
He added that Super saturday is scheduled for May 13.
I
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77
, ,
PAGE 77
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
Royle stated that Yanez is recruiting umpires
for the adult softball league.
Gieseler expressed some concerns over the
AVA/state tourism campaign and suggested that any funds
received should be given to affected communities to aid
in their campaigns to overcome negative press rather than
used as a generic tourism campaign fund.
GAGE distributed a report outlining the pro-
gress that had been made in the oil spill clean-up
effort. He also introduced Amos Plante, representing
Exxon; Irma Perry, representing VECO; Margaret Branson,
local Job Services Manager; and Jim Lucas, oil skimmer
expert from Houston, TX. Plante, Perry, Branson and
Lucas answered several questions from the Council and
updated the Council on their activities.
GATES briefly reviewed his activities over the
past two weeks. He noted that impetus for support of
EIS funding for Navy homeporting was waning in Juneau
and encouraged the Council to support the bill appropri-
ating the funds. He stated that the "chopsticks deal"
was on hold until a better supply of wood could be found.
Gates noted that the Chugach Alaska Corporation's third
lease would be before the Council for public hearing and
approval at the next meeting. He added that he was now
ready to start negotiating a dock use agreement with CAC
for use of the North Dock.
RECESS: The meeting was recessed at 9:15 p.m. and
reconvened at 9:25 p.m.
xv.
COUNCIL DISCUSSION:
DUNHAM stated that someone had been hired to
create three eye-catching signs for the highway, welcom-
ing visitors and directing them to the Boat Harbor and
to the Downtown and Historic Districts.
MEEHAN stated that he had met Senator Murkow-
ski's plane on Friday and had conferred briefly with him.
He noted that the message "outside" is that the state is
buried in oil. Murkowski indicated that the federal
government would be building three skimmers similar to
the Russian ship working near Seward (if the Russian
skimmer is successful in cleaning up the oil). One of
the three to be built will be permanently housed in
Prince William Sound.
NOLL asked if the new Trolley Car Service would
give a price break to senior citizens. Royle promised
to investigate. Noll also asked the administration to
~,...,
PAGE78
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
contact the Princess Tours people and make sure they had
Seward brochures.
NOLL asked the status of negotiations with Al
Schaffer (Afognak Logging) to mine gravel in Fourth of
July Creek. Royle noted that the city had been negoti-
ating with Schaffer for some time and had issued a "cease
and desist" order two weeks ago. (Schaffer had been
operating under a temporary agreement.) Schaefermeyer
noted that he had given permission to Afognak to extract
gravel necessary for the Inlet Salmon project and had
informed him that permission would be forthcoming for
other projects as needed. Arvidson noted that the
original agreement was a short term agreement approved
prior to the time the city acquired title to the property
from the borough. In the resolution approving the short
term agreement, the administration was instructed to
negotiate a long term agreement with Schaffer, and the
city has been involved in negotiations since November,
1988. Arvidson noted that the biggest stumbling block
at this point has been the inability to reach a number
agreeable to both sides. originally, Schaffer was
unwilling to commit to taking the amount of gravel
annually which the city thought was necessary to maintain
the channel. However, Schaffer now wishes to take up to
100,000 cy of gravel per year without payment to the
city. '
Gieseler stated that he had heard that the city
was going to be charging more for the gravel in Fourth
of July Creek than the "going price". Schaefermeyer
stated that he was unable to respond to that statement
since he did not know the going price of gravel.
Schaefermeyer also objected to negotiating prices and
terms of the agreement during the Council's business
meeting. He stated that he had met with Schaffer and had
promised to do what he could to resolve the issues.
O'Brien stated that he would like to see an agreement
before the Council for approval at the next meeting.
GIESELER asked the city manager to find out
who the city should write in order to invite the Navy
personnel in the area to call on Seward for R&R. He also
noted that he would be leaving in the morning for Juneau
to attend a Conference of Mayors meeting.
XVI. CITIZENS' DISCUSSION:
JOHN DUNCAN, 426 E. Eleventh Avenue, Anchorage,
stated that he wished to represent the Japanese business-
men interested in supplying a product for use in the oil
clean-up. Gieseler referred him to the U. S. Coast
Guard.
I
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. 70
f..'
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PAGE 79
REGULAR MEETING - APRIL 24, 1989
VOLUME 24
',-
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 9:45 p.m. and,
after a short recess, the Council reconvened in Executive
Session to discuss the IBEW petition to represent
hospital employees. This session was recessed at its
conclusion, and Councilmembers O'Brien and Noll left the
room while council discussed the stout appeal. Following
conclusion of the deliberative process and completion of
Council instructions to the attorney for preparation of
the Findings, O'Brien and Noll returned to Council
Chambers and participated in the Executive Session
regarding a personnel matter.
'- ,
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PAGE 79
SPECIAL MEETING - MAY 1, 1989
VOLUME 24
I.
CALL TO ORDER:
The May 1, 1989, special meeting of the Seward
City Council was called to order at 7:10 p.m. by Mayor
Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Noll led the pledge of allegiance
to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll and Simutis (O'Brien
arrived later in the meeting)
........,,-.
, '
PAGE 80
SPECIAL MEETING - MAY 1, 1989
VOLUME 24
IV.
Present also: ci ty Manager Royle, Deputy City
Manager Schaefermeyer, Interim
Finance Director Gifford, Port
Marketing Director Gates, Parks
and Recreation Dept. Director
Yanez , Administrative Assistant
Martin, Engineering & utilities
Manager Diener, and city Clerk
Murphy
APPROVAL OF SPECIAL MEETING AGENDA:
SIMUTIS MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI.
NEW BUSINESS:
A. HILTON MOVED TO APPROVE A SUBLEASE OF
PROPERTY LOCATED ADJACENT TO THE SILVER SALMON CACHE BY
DALE CLEMENS TO VECO FOR USE AS A FIRST AID STATION; THE
MOTION WAS SECONDED BY DUNHAM. [GIESELER RULED THAT
HILTON, AN EMPLOYEE OF SEWARD GENERAL HOSPITAL, HAD NO
CONFLICT OF INTEREST.]
Martin stated that Dale Clemens had asked the
city for permission to place an ATCO trailer on the
vacant lot between the Salmon Cache and the Breeze Inn
Restaurant for sublease to VECO to use as a first aid
station and security guard office. Martin noted that the
Seward Urban District zoning Code does not address first
aid stations; however, this probably would not be a use
consistent with other uses allowed in the Harbor Commer-
cial District. He further noted that the Code does
provide for temporary mobile units to be used as office
space or for security purposes; however, it might be
possible for the city to allow the first aid station
under special emergency rules.
Schaefermeyer stated that he questioned the
need for a first aid station located some three minutes
from the local hospital. He noted that the hospital is
heavily subsidized by the local taxpayers and is under-
utilized. He said that Hospital Administrator Campbell
had offered to work with VECO to provide office space for
a VECO nurse at the hospital, but VECO had failed to
follow up on this.
simutis stated that she could not support this
request, primarily because of its location. She noted
that this area is heavily congested already and she did
not want to encourage additional traffic. In addition,
location of a first aid station in the Boat Harbor would
be in conflict with the Comprehensive Plan.
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PAGE 81
SPECIAL MEETING - MAY 1, 1989
VOLUME 24
In response to a question from Meehan, Schaefermeyer
stated that he did not know what sort of safety/injury
record VECO had, adding that he had hoped that VECO would
have a representative at the meeting to answer Council's
questions. Schaefermeyer also noted that VECO has a
medical vessel on the water and has a helicopter avail-
able to evacuate critically injured workers. Meehan
stated that he could see no real need for the first aid
station at this time. Dunham concurred, adding that if
there were a desperate need, VECO reps would be present
at the meeting.
GIESELER MOVED TO POSTPONE ACTION ON THIS
PROPOSED SUBLEASE UNTIL THE MAY 8, 1989, MEETING; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS
VOTE OF THE COUNCIL. [THE MAYOR RULED THAT DUNHAM,
MEMBER OF A PARTNERSHIP RENTING OFFICE SPACE TO VECO, HAD
NO CONFLICT OF INTEREST.]
B. Recruitment and hirinq of new citv
manager. Hilton stated that it was important that the
Council set the tone for the approach it wishes to take
regarding the hiring of a new city manager. He added
that he favored promoting from within the city staff
rather than recruiting from outside the city. Meehan
concurred, stating that he could see no reason to
advertise when Schaefermeyer was well qualified to fill
the position. Simutis agreed.
SIMUTIS MOVED TO RECESS TO EXECUTIVE SESSION
TO DISCUSS WITH SCHAEFERMEYER HIS QUALIFICATIONS FOR THE
CITY MANAGER POSITION; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
RECESS: The meeting recessed at 7: 40 p. m. and reconvened
at 8:52 p.m. following the executive session.
NOTE: O'Brien arrived during th~ executive session and
participated in the remainder of the meeting.
NOLL MOVED TO OFFER THE CITY MANAGER POSITION
TO DARRYL SCHAEFERMEYER EFFECTIVE JULY 1, 1989, OR SOONER
SHOULD ROYLE LEAVE PRIOR TO THAT TIME, AT AN ANNUAL
SALARY OF $62,000 AND A $200 PER MONTH VEHICLE ALLOWANCE,
AND WITH A STANDARD CONTRACT SIMILAR TO GARZINI'S; THE
MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
Gieseler stated that he and the Council would
prepare a Scope of Services for Schaefermeyer. The Clerk
was instructed to prepare the contract for approval by
the Council following mutual agreement with respect to
the Scope of Services Agreement.
81
C.MANAGER:
(CM Position
offered to
D. Schaefer-
meyer)
8,?,
PAGE 82
SPECIAL MEETING - MAY 1, 1989
VOLUME 24
VI.
COUNCIL DISCUSSION:
0' BRIEN stated that there is a good deal of oil
in the Bay. He said that the crew working with him in
the clean-up effort had spotted what they believed to be
dispersants in the water. He asked if VECO or Exxon had
received permission to use the dispersants. Schaefer-
meyer stated that Exxon has repeatedly denied the use of
dispersants. O'Brien suggested that the city do some
independent checking and asked the administration to
request that the Harbormaster take a water sample for
testing. Gage noted that DEC is investigating this
situation already.
NOLL stated that In Jae Kim and his family had
found oil in mussels they had harvested at Lowell Point.
MEEHAN noted that the commercial clam fishery
in Prince William Sound has now been lost as a result of
the oil spill.
GIESELER stated that he would be meeting in
Anchorage with the mayors of affected communities and
members of the Governor's staff on Thursday.
VII.
CITIZENS' DISCUSSION:
None
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
VIII.
None
IX.
ADJOURNMENT:
The meeting was adjourned at 9:20 p.m.
~ '
" ~~
Har E. Gieseler
Mayor
.
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K3
PAGE 83
REGULAR MEETING - MAY 8, 1989
VOLUME 24
I.
CALL TO ORDER:
The May 8, 1989, regular meeting of the Seward
city Council was called to order at 7:30 p.m. by Mayor
Harry E. Gieseler.
II.
OPENING CEREMONY:
student Mayor David Walker led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll and Simutis (O'Brien was
absent)
Present also: city Manager Royle, Deputy City
Manager Schaefermeyer, City
Attorney Arvidson, Engineering
& utilities Manager Diener,
utility Engineer Anderson,
Administrative Assistant Martin,
Interim Finance Director
Gifford, Parks & Recreation
Director Yanez, Port Marketing
Director Gates, Harbormaster
Singleton, Police Chief Bencar-
dino, SGH Administrator Camp-
bell, and city Clerk Murphy
SPECIAL ITEM:
Gieseler noted that this was local government
day at the High School, and various students had been
selected to represent elected officials and administra-
tive staff for the day. He stated that the event had
begun at a special luncheon earlier in the day when the
students met their counterparts. The students had then
spent the rest of the day with the city officials they
represented and were present at the meeting. He intro-
duced the students and presented each with a city pin.
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE APRIL 24 AND MAY
1, 1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY
SIMUTIS AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
Noll requested that the fOllowing items be
moved from the Consent Calendar to the regular agenda:
f;f
ELEC.DEPT/CON-3321
RESO: (Meter
Audit)
BOARD OF ADJ/
RESO: (Stout)
STREETS/CON-33C1'
RESO: (striping)
SHIPLIFT/RESO:
C.ATTY:
RE-
PAGE 84
REGULAR MEETING - MAY 8, 1989
VOLUME 24
No.1 - Proposed Resolution No. 89-038 - Moved
to XI(C) (4)
No.8 - Price Waterhouse Invoice - Moved to
XIII (A)
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall was not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY, EXCEPT THAT NOLL NOTED HIS ABSTENTION FROM
VOTE ON ITEM NO.3. The following actions were taken:
1. Moved to Regular Meeting Agenda;
2. Resolution No. 89-042, approving a
contract for the city's annual meter audit, was approved;
3. Resolution No. 89-043, ratifying the
Council's "Findings" regarding the Board of Adjustment
Hearing on the stout appeal, was approved;
4. Resolution No. 89-044, awarding a contract
for striping streets and crosswalks, was approved;
5.
contract for
shiplift and
Resolution No. 89-045, approving a
installation of a protective bumper on the
appropriating funds, was approved;
6. April 19, 1989, invoice from Perkins Coie
for legal services as follows was approved for payment:
D~6~a (~Kt January 13S~ - $13,694.95
psluna-r:y 1989 - $15,636.75
TI't,.;~y
7. Assignment of Boardwalk Lease site No.2
(RE-048) from Marv and Linda Mardock to Woody and Marlene
Cole was approved;
8. Moved to Regular Meeting Agenda;
~
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PAGE 85
REGULAR MEETING - MAY 8, 1989
VOLUME 24
9. Resignation of city Manager Royle was
noted and Mayor's letter of acceptance of the resignation
dated April 25, 1989, was approved;
10. Award of bid for remodeling the police
dispatch center to Danlin Construction for the amount of
$5,387 was noted for information;
11. Application for Permit for Games of Chance
and Skill as filed by SEWARD INTERNATIONAL FRIENDSHIP
ASSOCIATION was noted for information;
12. Seward Fisheries' annual report of repair
and maintenance of a portion of city dock as required by
SFI's preferential use agreement was noted for informa-
tion; and
13. Newberry Alaska y. Crowley Constructors
settlement agreement was noted for information.
IX.
PUBLIC HEARINGS:
A. Notice of PUBLIC HEARING ON NECESSITY, as
posted and published as required by law, regarding a
proposed improvement district which would result in the
construction of a system to provide electric power in the
area described as Lots 16-23, Block 4; Lots 17-27, Block
5; Lots 8-9, Block 6; Lots 5-30, Block 7; Lots 1-38,
Block 8; Lots 7-8, Block 9; Lots 1-4 and 27-28, Block 10;
and Lots 7-11, Block 11; Camelot by the Sea Subdivision;
was noted and the public hearing was opened.
DEAN KASISCHKE, Lancelot Drive, Camelot
SUbdivision, stated that residents of Camelot have been
attempting to acquire electric power since early 1980.
Some residents have received quotes from the city in
excess of $60,000 to provide power to an individual lot.
In 1987, residents of the subdivision lobbied the state
and received a $46,000 grant to begin design of the
project. The Governor included another $50,000 for the
proj ect in his Jobs Bill of 1988. After surveying
residents of the subdivision regarding their willingness
to agree to an assessment district to cover the balance
of the cost to bring electricity into the SUbdivision,
and after many talks with Utility Engineer Jack Anderson,
the proposed district had been defined. Kasischke noted
that the district contains ninety-eight lots, and owners
of 55 of those lots have signed petitions favoring the
formation of the improvement district.
TOM DORAN, Camelot SUbdivision, spoke in
support of the district.
8.5
C.MANAGER: (Re-
signation)
POLICE/CITY BLDGI
CON- -:j1~
PERMITS: (Garnes
of Ch. & Skl)
ASSESSMENT DIS/
PUBLIC HEARINGS:
(Camelot Elec.
District)
"JI<,
PUBLIC HEARINGS/
4TH OF JULY
CREEK/RE-
(CAC Lease
No.3)
SMIC/FLOOD CON-
TROL/PUBLIC
HEl\RINGS:
(Afognak
Agreement)
PAGE 86
REGULAR MEETING - MAY 8, 1989
VOLUME 24
LAURA BEAM, Merlin Drive, Camelot Subdivision,
spoke in favor of the district, noting that electrifying
Camelot would greatly improve the quality of life of the
residents.
DIANE ELHARD, Knight Street, Camelot Sub-
division, stated that she had lived in the subdivision
for ten years and fully supported the formation of this
improvement district.
DAN LOGAN, Lancelot Drive, stated that he
favored the project.
DENNIS LODGE, Lot 23, Block 4, Camelot Sub-
division, stated that he favored the project.
No one else appeared in order to be heard and
the public hearing was closed.
B. Notice of public hearing as posted and
published as required by law regarding a proposed LEASE
OF CITY PROPERTY to Chugach Alaska Corporation to develop
and use an area of approximately 8.0 acres directly
adj acent to the north of CAC I S current leased lands
wi thin the Industrial Zone at Mile 4.75, Nash Road,
wi thin the Fourth of July Creek Industrial Area (USS
4828), was noted and the public hearing was opened; no
one appeared in order to be heard and the public hearing
was closed.
C. Notice of public hearing as posted and
published as required by law regarding a proposed
MAINTENANCE AND GRAVEL EXTRACTION AGREEMENT between the
city and Afognak Logging, a division of Kodiak Lumber
Limited, to provide for flood prevention and channel
maintenance of Fourth of July Creek and to permit the
extraction of gravel for commercial purposes was noted
and the public hearing was opened.
FRANK DIECKGRAEFF, 219 Marathon Drive, stated
that he was opposed to any exclusive contract for
extraction of the gravel and urged the Council to allow
open purchase of the gravel from the city.
AL SCHAFFER, Mile 2.5, Nash Road, representing
Afognak Logging, stated that he had been negotiating with
the city for months. He stated that when the short term
agreement was executed last year, it was with the
understanding that Afognak would be offered a long term,
exclusive lease. He stated that Afognak has proposed to
extract 100,000 c.y. of gravel from Fourth of July Creek
annually for the next five years, with the first 50,000
c.y. to be taken at no charge, and the next 50,000-
100,000 c.y. to be assessed a royalty of $0.25 per c.y.
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PAGE 87
REGULAR MEETING - MAY 8, 1989
VOLUME 24
Schaffer stated that Afognak had acted in good faith and
had prevented the river bed from reaching a level even
with the top of the dike through its efforts last year.
GIESELER noted that the Council had before it
two versions of the proposed agreement - one calling for
exclusive rights to the gravel, and one with a nonex-
clusive clause. Arvidson stated that the two agreements
in the Council's packets had been presented to Schaffer
and his attorney last Thursday. Since that time, the
following changes had been made to the basic agreement:
1. Paae 3 - Change to read "...at such points in
the river maintenance zone as shall be reasonably
designated by the CITY. ("reasonably" added)
2 . Paae 5 - Change Paragraph 9, Subparagraph lib",
to read "..., CITY may either remove the spoil itself or
competitivelY contract with another contractor..."
("competitively" added)
3. Paqe 5 - Change Subparagraph "c" to read "...
under the terms of subparagraph a) [of this section], or
is not awarded a contract under subparaaraph b), then
nothing in this agreement ..." (Delete text in [brac-
kets] and add underlined text)
4.
"Unless
[T],this
text in
Paqe 7 Change Subparagraph "d"
otherwise aqreed in writinq bv the
agreement only authorizes sales of "
[brackets] and add underlined text)
to read
parties.
(Delete
5. Paqe 7 - Change Subparagraph "f" to read
royalties under this aqreement shall be paid ..."
underlined text)
"All
(Add
SCHAFFER noted that both forms of the agreement
call of a three-year term; however, Afognak would like
a 5-year agreement.
No one else appeared in order to be heard and
the public hearing was closed.
D. Notice of public hearing as posted and
published as required by law regarding the proposed
Fiscal Year 1990 general fund and enterprise budgets was
noted and the public hearing was opened; no one appeared
in order to be heard and the public hearing was closed.
x.
PRESENTATIONS WITH PRIOR NOTICE:
A. MARTIN A. FARRELL, JR., was scheduled to
make a presentation to the Council regarding a billing
P'7'
( , .
PUBLIC HEARINGS/
BUDGET: (FY 90)
HOSPITAL BOARD/
ORD:
PAGE 88
REGULAR MEETING - MAY 8, 1989
VOLUME 24
dispute between the city and Harbor Dinner Club, but the
presentation was cancelled at Farrell's request.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing & Enactment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 2.30, ARTICLE 1, COMMUNITY
HOSPITAL BOARD.
Murphy noted that there was a motion on the
floor to enact the ordinance. She further noted that
public hearing had been conducted on April 24, and a
second hearing had not been scheduled.
Gieseler stated that he would accept testimony
from any Hospital Boardmembers present who wished to
comment on the proposed ordinance.
LORI DRAPER, Old Mill Subdivision, CHB-member,
stated that the Board would prefer to continue holding
its meetings at the hospital in order to accommodate
hospital staff. She also noted that, since all of the
Board's records are stored at the hospital, meeting in
that facility would be more convenient for the Board.
AL LAMBERSON, Mile 6.3, Seward Highway, CHB-
member, asked the Council to consider allowing the Board
to continue to meet at Noon rather than in the evenings.
SIMUTIS MOVED TO AMEND THE ORDINANCE BY SUB-
STITUTING THE WORD "SHALL" FOR "MAY" IN SECTION 2.30.-
110(B); THE MOTION WAS SECONDED BY GIESELER.
Dunham obj ected to the proposed amendment,
stating that all Board appointments by the Council
should be consistent. Noll also opposed the amendment,
stating that he objected to the Board mandating who is
appointed to it by the Council.
THE QUESTION WAS CALLED ON THE AMENDMENT AND
IT FAILED WITH GIESELER, MEEHAN AND SIMUTIS VOTING
"YES"; DUNHAM AND NOLL VOTING "NO"; AND HILTON ABSTAIN-
ING.
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PAGE 89
REGULAR MEETING - MAY 8, 1989
VOLUME 24
MEEHAN MOVED TO AMEND SECTION 2.30.112(A) BY
INSERTING "7: 00 P.M." FOR THE TIME AND "THE THIRD MONDAY"
FOR THE DAY OF THE MONTHLY MEETINGS OF THE BOARD; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE
"YES" VOTES AND HILTON ABSTAINING.
Meehan noted that once the Board begins to meet
regularly in Council Chambers, it is possible that more
public participation in the meetings will be forthcoming.
SIMUTIS MOVED TO AMEND THE ORDINANCE BY SUB-
STITUTING "BOARD" FOR "COMMISSION" THROUGHOUT AND BY
SUBSTITUTING "FIVE" FOR "FOUR" IN SECTION 2.30.112(B);
THE MOTION WAS SECONDED BY NOLL AND CARRIED WITH FIVE
"YES" VOTES AND HILTON ABSTAINING.
SIMUTIS MOVED TO AMEND THE ORDINANCE BY CHANG-
ING THE FIRST SENTENCE IN SECTION 2.30.112(A) TO READ
"ALL MEETINGS AND RECORDS OF THE BOARD SHALL BE OPEN TO
THE PUBLIC, EXCEPT THAT THE BOARD MAY MEET IN EXECUTIVE
SESSION IN ACCORDANCE WITH MEDICAL STAFF BYLAWS AND
ESTABLISHED PROCEDURES OF THE BOARD", AND BY INSERTING
THE WORD "THIRTY" IN THE BLANK IN SECTION 2.30.125(A);
THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FIVE
"YES" VOTES AND HILTON ABSTAINING.
Simutis, Noll and Gieseler expressed concern
that the hospital audit be completed within the required
90 days. Schaefermeyer stated that this could be ac-
complished without an amendment to the ordinance.
THE QUESTION WAS CALLED ON THE MAIN MOTION TO
ENACT ORDINANCE NO. 616 AS AMENDED, AND THE MOTION
CARRIED WITH FIVE "YES" VOTES AND HILTON ABSTAINING.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, RELATIVE
TO MUNICIPAL OFFICIALS' COMPLIANCE
WITH AS 39.50.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened: no one appeared in order to be heard
and the public hearing was closed.
SIMUTIS MOVED TO ENACT ORDINANCE NO. 617; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FIVE
"yES" VOTES AND HILTON ABSTAINING. (This ordinance
requires that members of the Community Hospital Board
gq
HOSPITAL BOARD/
ORD: (Requiring
CHB-Mernbers to
file conflict
of interest/
financial dis-
closure strnts)
~'tr j
PAGE 90
REGULAR MEETING - MAY 8, 1989
VOLUME 24
file conflict of interest/financial disclosure state-
ments. )
SPECIAL ITEM - STUDENT COUNCIL & ADMIN. COMMENTS:
DAVE WALKER, Student Mayor, stated that he had
learned a lot during his day with the Mayor and said that
he hoped the project would continue next year.
CATHY CONDIT, Student Councilmember, thanked
the Council and Mary Daniel for making this program
possible.
SEAN GLENN, Student Councilmember, thanked the
Council and stated that he had been surprised at the
amount of activity going on in town.
STEVE HUSS, Student Councilmember, noted that
he had learned just how long a group of people could
argue over one word. He thanked the Council for allow-
ing the students to participate in this project.
DARRYL SELA, Student Councilmember, thanked
the Council and the school.
STEVE THOMPSON, Student Councilmember, stated
that he was impressed with the shiplift and the sawmill
construction. He stated that he hopes the city continues
to grow.
HATTON GREER, Student City Manager, thanked
John Burkhardt for coming up with the idea, and the
school and Council for making it happen.
KAMBE FLETCHER, Student Administrative Assis-
tant, thanked Mary Daniel for her hard work in putting
the program together.
AUTUMN WEEKS, Student city Clerk, stated that
she had learned a lot through this program and noted that
the Clerk's job was not what she had expected.
GRACE SCHOLL, Student Finance Director, thank-
ed Gifford for his time. She stated that she had plowed
through all of the city budgets, and this had been a
learning experience for her.
ROSE SPELLMAN, Student Port Marketing Director,
thanked the Council and the city.
ADRIAN JONES, Student Pol ice Chief, thanked
Bencardino and the Council.
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PAGE 91
REGULAR MEETING - MAY 8, 1989
VOLUME 24
LISA CORBIN, Student Fire Chief, stated that
she had had a fun day. She thanked the Fire Chief and
Deputy Chief.
RUSS STIGALL, Student utilities & Engineering
Director, thanked the city, Diener and Anderson.
JEANNE IKERD, Student Librarian, thanked
Librarian Deck and stated that she hoped the Council
would budget enough in the Library budget to make it
possible for her to have a summer job there this year.
THERESA TREECE, Student Parks and Recreation
Director, thanked Yanez and the Council.
RECESS:
The meeting was recessed at 8: 30 p. m. and
reconvened at 8:50 p.m.
C. Resolutions:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, DETER-
MINING TO PROCEED WITH A SPECIAL
IMPROVEMENT DISTRICT CALLED THE
CAMELOT ELECTRICAL ASSESSMENT DIS-
TRICT.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-039;
THE MOTION WAS SECONDED BY HILTON.
MEEHAN MOVED TO AMEND THE RESOLUTION BY ADDING
THE FOLLOWING TO THE END OF SECTION 2:
..., EXCEPT IF THE TOTAL COST OF THE PROJECT
WHEN BID EXCEEDS THE CURRENT ESTIMATED COST OF
$250,000.00 BY MORE THAN l5%, THE COUNCIL WILL
SCHEDULE A PUBLIC HEARING TO RECEIVE PUBLIC
COMMENT AND DETERMINE WHETHER OR NOT TO PRO-
CEED WITH THE PROJECT.
THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUS-
LY.
THE QUESTION WAS CALLED ON THE MAIN MOTION AS
AMENDED, AND RESOLUTION NO. 89-039 WAS APPROVED BY
UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
fll
ASSMT.DISTRICT/
RESO: (Reso.to
proceed w/Cam-
elot Electric
Improvement
District)
() r;~
4TH OF JULY/RE-
/RESO: (CAC
Lease No.3)
PAGE 92
REGULAR MEETING - MAY 8, 1989
VOLUME 24
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING LEASE AGREEMENT NO. 3 WITH CHU-
GACH ALASKA CORPORATION.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-040;
THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUS-
LY.
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A MAINTENANCE AND GRAVEL EXTRAC-
TION AGREEMENT WITH AFOGNAK LOGGING.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-041;
THE MOTION WAS SECONDED BY SIMUTIS.
NOLL asked if his conflict of interest result-
ing from Suneel's ongoing negotiations with Afognak
would prevent him from speaking to this motion. Arvid-
son advised that the City Code forbade his speaking to
or voting on the motion.
Arvidsion noted that there were still two
issues for the Council to resolve:
1. Term of Agreement - 3 years or 5 years;
and
2. Exclusive or Nonexclusive.
He stated that city administration and Afognak
had not resolved these issues as of last Friday. He
noted that Schaffer had requested a five year exclusive
agreement and a different royalty schedule than the one
proposed by the administration.
Schaefermeyer stated that he had no recommen-
dation for the Council regarding the "exclusive/nonex-
clusive" issue. However, he noted that he did have
concerns regarding an exclusive agreement which would
extend beyond three years.
In response to a question from Simutis, Gates
stated that after three years, an exclusive agreement
could be detrimental to further development at SMIC,
since one supplier would be setting the rates for gravel
needed for this development.
Meehan stated that he felt an exclusive agree-
ment would not be in the best interest of the city.
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PAGE 93
REGULAR MEETING - MAY 8, 1989
VOLUME 24
However, he stated he would be willing to reconsider if
Afognak acquired an export agreement.
Simutis disagreed. She stated that in light
of the earlier short term agreement and the amount of
effort and money Afognak had put forth at the front end
of its earlier agreement, the company deserved at least
a three-year exclusive agreement. Gieseler concurred.
DUNHAM MOVED TO AMEND THE AGREEMENT BY SETTING
THE TERM FOR FIVE YEARS WITH THE FIRST THREE YEARS TO BE
EXCLUSIVE; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
WITH FOUR "YES" VOTES, MEEHAN VOTING "NO", AND NOLL
ABSTAINING.
Hilton asked if the administration had looked
into the possibility of increasing the amount of gravel
which could be extracted by Schaffer at no cost in
exchange for completing the fill at the North Dock.
Diener replied that this had not been explored.
HILTON MOVED TO POSTPONE ACTION ON THE RESOLU-
TION UNTIL THE MAY 22, 1989, MEETING, WITH INSTRUCTIONS
TO THE ADMINISTRATION TO INVESTIGATE THE POSSIBILITY OF
INCLUDING COMPLETION OF THE NORTH DOCK IN THE CONTRACT;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE
"YES" VOTES AND NOLL ABSTAINING.
4. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A TEMPORARY LEASE AGREEMENT TO
VECO, INC., FOR THE PURPOSE OF ES-
TABLISHING AND OPERATING A WILDLIFE
RESCUE CENTER.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-038;
THE MOTION WAS SECONDED BY SIMUTIS.
Noll asked if the administration had any idea
how much money was being put into development of this
rescue center. Schaefermeyer stated that he did not
have access to that figure, but had heard estimates
ranging from $250,000 to $400,000. Noll urged the
administration to see if something more permanent could
be put "in the ground" if that amount of money was being
spent (rather than invest in ATCO trailers which would
have to be removed at the close of the project).
Schaefermeyer stated that he wanted to dispel
the rumors that the city had not reacted quickly enough
0""
~,)
OIL SPILL/RE- /
RESO: (VECO
lease for mar-
ine mammal res-
cue center)
. I.
PAGE 94
REGULAR MEETING - MAY 8, 1989
VOLUME 24
to get this facility up and running. He stated that he
had been contacted approximately one month ago by stiers,
who was under contract to Exxon, about the need for
property for the animal rescue center. He stated that
a draft lease was in stiers' hand within four hours of
his phone call, and Exxon received a draft of the lease
within 3 or 4 days. From that point, it took a full week
of meetings with attorneys for Exxon to finalize the
lease. Schaefermeyer stated that the city signed the
lease on April 26 and gave verbal permission to enter the
land on that day. The lease then went to Valdez where
it was signed by Exxon officials on April 27.
THE QUESTION WAS CALLED, AND RESOLUTION NO.
89-038 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
XII. UNFINISHED BUSINESS:
A. Proposed sublease of propertv from D.
Clemens to VECO - Murphy noted that a motion for approval
was on the floor.
DALE CLEMENS stated that he had been approached
by VECO to sublease Lot 2, Block 1, Marina Subdivision,
to house an aid station and security station. He stated
that there was plenty of room on the lot for the proposed
ATCO unit. Clemens noted that VECO would skirt the
trailer and construct a deck in front. Clemens also
noted that off-street parking was available at the site.
In response to a question from Simutis, JACK
MILLER, representing VECO, stated that VECO would station
one nurse at the aid station. He noted that this nurse
would function much as a school nurse does, referring any
serious injuries to Seward General Hospital. In addi-
tion, the VECO nurse would initiate the necessary
workers' compensation paperwork. Miller noted that there
had not been a significant number of injuries to date.
Dunham asked how many security guards were
currently employed by VECO; Miller responded that there
were thirty (30) on staff.
Noll asked if there were any Land Use guide-
lines about which the Council should be aware. Schaef-
ermeyer stated that, normally, mobile buildings require
a conditional use permit. However, given the nature of
the oil spill emergency, this requirement had been
administratively waived for the bird and mammal rescue
centers. Schaefermeyer noted that the Planning commis-
sion had unanimously rejected a similar request to place
an ATCO unit south of the A-Frame building in the SBH.
He noted that the Planning commission had voiced its
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PAGE 95
REGULAR MEETING - MAY 8, 1989
VOLUME 24
strong opposition to the placement of any trailers in
the Small Boat Harbor.
simutis asked if all utilities were readily
available at the site in question. Schaefermeyer stated
that VECO had requested electricity and telephone only
and did not intend to provide water and sewer to the
site. Dunham questioned the wisdom of operating a first
aid station without benefit of running water.
THE QUESTION WAS CALLED AND THE MOTION FAILED
WITH FIVE "NOli VOTES AND GIESELER VOTING "YES".
XIII.
NEW BUSINESS:
A. Price Waterhouse invoice totallinq $7.-
101.15 for professional services in connection with the
compilation of the Februarv 1989 financial statements of
Seward General Hospital.
NOLL MOVED TO AUTHORIZE PAYMENT OF THE PRICE
WATERHOUSE INVOICE TOTALLING $7,101.15 AS REQUESTED; THE
MOTION WAS SECONDED BY SIMUTIS.
Noll asked why Price Waterhouse failed to
mention the hospital's debt to the city when the FY 1988
audi t was prepared. Schaefermeyer stated that the
accounts receivable was noted in the audit; however, it
was not listed in "Interfund Receivables & Payables" as
other enterprise fund debts have been in the past.
Instead, P/W noted this debt in the combined balance
sheet as "Accounts and Contracts Payable".
In response to a question from Noll, Gifford
stated that he monitors the receivables on a monthly
basis. He stated that other utilities generally issue
a termination letter when an account is 45-60 days past
due, with termination of service at 90 days past due.
Noll stated that he intended to vote in favor
of this motion, but he asked that the Council consider
giving the administration direction to keep the Council
informed of past due receivables. Meehan concurred, but
noted that the Council should only be noticed of those
receivables 60 days or more past due.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
UNANIMOUSLY.
XIV.
CITY MANAGER REPORTS:
ROYLE noted the following:
fir;
HOSPITAL/FIN.
SERVICES/CON-
D15::2L
,'''' -.
, I
PAGE 96
REGULAR MEETING - MAY 8, 1989
VOLUME 24
1. The city has received a letter from DOT/PF
stating that the department will survey speed limits on
the Seward Highway if funding is available this year.
However, DOT/PF will need the results of the survey
before action can be taken to reduce the speed limit as
requested by Council.
2. Plans are underway to move the rail car
next to the Lagoon. He stated that it has become a life
safety hazard, and he hopes to have it removed as part
of the city's spring cleanup campaign.
3. The borough Economic Development District
has asked Exxon for $150,000 to mount a tourism enhance-
ment campaign. The borough has contracted with Holden,
Hackney and Breeze for a borough-wide campaign; however,
Schaefermeyer has expressed some concerns that the city
will not be well served through this advertising effort.
SCHAEFERMEYER stated that he has asked Exxon
to provide $50,000 to the city of Seward for the purpose
of addressing the city's need to counter negative press
it has received as a result of the oil spill and the
cleanup effort.
SCHAEFERMEYER asked the Council to schedule a
work session to review city budgets.
GIESELER INSTRUCTED THE CLERK TO SCHEDULE A
JOINT WORK SESSION WITH THE HOSPITAL BOARD AT NOON,
WEDNESDAY, MAY 10, 1989, IN ORDER TO DISCUSS ALL CITY
BUDGETS.
xv.
COUNCIL DISCUSSION:
NOLL stated that he would like an answer from
Price Waterhouse regarding its failure to make the City
aware of the large debt owed the city by the hospital.
In addition, he requested that Council be provided with
a monitoring report of delinquent accounts as well as a
quarterly budget variance report. Gieseler stated that
this request could be included in the Council's "scope
of services" letter to Schaefermeyer.
SIMUTIS asked if anyone had responded to Don
Cripps' letter. Gieseler stated that he would personal-
ly contact cripps regarding the form letter he had
received from the administration requesting his assis-
tance in correcting specific violations to the public
nuisance code.
HILTON asked if it were true that Exxon was
reimbursing city employees for time spent responding to
I
I
I
Q7
v r
PAGE 97
REGULAR MEETING - MAY 8, 1989
VOLUME 24
the oil spill and the cleanup effort. Schaefermeyer
stated that the city actually cuts the check; however,
reimbursement is received from state funds controlled by
the borough upon approval of the MUlti-Agency Coordinat-
ing Group.
HILTON noted that the sign listing local
churches and located on the highway north of Peninsula
Ford obstructs ones view when entering the highway. He
also noted that the Air Force has installed a new sign
at Dimond and the Seward Highway which obstructs a
driver's view. He asked the administration to see what
could be done about moving these signs. Diener stated
that he would look into this.
MEEHAN stated that he concurred with Noll
regarding the need for budget variance reports and a
utility monitoring report.
MEEHAN noted tha~ any plans to move the rail
car adjacent to the Lagoon would probably bring some
opposition from the public. He asked if it would be
possible to make the car safe without moving it. Diener
stated that the rail car is beyond repair. He suggested
that photos of the rail car be placed in the museum and
that a sign designating the spot be placed on site.
DUNHAM stated that she agreed with Noll and
Meehan about the need for budget and utility monitoring
reports. She stated that the city's finances should be
the Council's first priority during the coming year.
GIESELER noted that Madelyn Walker had resigned
her position on the Trade Board. He asked the Clerk to
put appointment of Doug Lechner to this position on the
May 22 agenda.
GIESELER stated that some contractors have
apparently set up "open" purchase orders at local busi-
nesses in order to avoid paying full sales tax on goods
and services purchased. Arvidson stated that he would
write a letter to the borough attorney asking that the
borough remind vendors that each transaction must be
treated as a separate sale. schaefermeyer stated that
he had already alerted the borough finance director that
this might be happening.
GIESELER noted that the Clerk would be out of
town from May 17 through the end of the month.
GIESELER also noted that he had extended an
invitation to the skipper and executive officer of the
Soviet skimmer for lunch.
PAGE 98
REGULAR MEETING - MAY 8, 1989
VOLUME 24
XVI. CITIZENS' DISCUSSION:
BILL COX, 2501 Spruce Street, asked the Coun-
cil's help in establishing a home health care system in
Seward. He stated that this was a federally funded
program available in Homer, Kenai and Soldotna, but not
in Seward. Gieseler stated that he had taken this
concern to Juneau, and Representative Cato's office has
been investigating. He noted that the problem appeared
to be the inability to find a nurse to fill the position.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
DUNHAM suggested that, if a local nurse could
not be found to provide this service, perhaps the city
should look outside the community for someone to fill the
position.
CAMPBELL stated that the hospital had looked
into the home health care program several years ago. He
said that the federal regulations and reporting require-
ments are so onerous that the hospital simply could not
afford to provide the service. Campbell noted that some
of the hospital nurses had at one time been under con-
tract to Peninsula Home Health Care to provide the
service in their off-duty hours. The nurses were paid
only for the actual hours they provided nursing services;
however, each hour of nursing generated three to four
hours of paperwork. He reported that, at this time, none
of the nurses were willing to participate in the program.
XVII I .
ADJOURNMENT:
The meeting was adjourned at 10:45 p.m.
....,...'.\~
. .
SEAL
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717:1JTf)Jf>- .
I
I
I
PAGE 99
SPECIAL MEETING - MAY 15, 1989
VOLUME 24
I.
CALL TO ORDER:
The May 15, 1989, special meeting of the Seward
City council was called to order at 6:42 p.m. by Mayor
Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Hilton led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton and Noll
(O'Brien arrived at 7:00 p.m.;
Meehan and Simutis were excused)
Present also: City Manager Royle, Deputy City
Manager Schaefermeyer, Ci ty
Attorney Arvidson, Interim
Finance Director Gifford, Port
Marketing Director Gates,
Engineering and utilities
Manager Diener, Police Chief
Bencardino and City Clerk Murphy
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
HILTON MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM
AND CARRIED UNANIMOUSLY.
V.
RESOLUTIONS:
A. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A LOCAL GOVERNMENT EXPENSE REIM-
BURSEMENT AGREEMENT.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-046;
THE MOTION WAS SECONDED BY DUNHAM.
Arvidson stated that he and Valdez attorney
(for oil spill related matters) Gordon Tans, also of
Perkins Coie, had been discussing the differences in the
way Exxon has been responding to various communi ties
affected by the oil spill. As a result of their discus-
sions, they had met with attorneys for Cordova, Homer,
Kodiak Island Borough and Kenai Peninsula Borough, and
99
OIL SPILL/CON-
/RESO: (Re-
imbursement
agrrnt. between
affected com-
munities &
Exxon)
-"'~
PAGE 100
SPECIAL MEETING - MAY 15, 1989
VOLUME 24
together they had drafted an agreement which would allow
each of the communities affected by the spill to be
reimbursed for extraordinary expenses equi tably . He
noted that the agreement does not address any claims
against Exxon or others. Arvidson stated that the
agreement has already been approved by Whittier, the city
of Kodiak, Kodiak Island Borough, Homer, and Seldovia.
seward, Valdez and Cordova were each scheduled to
consider approval this evening, and Kenai Peninsula
Borough would consider approval on May 16.
Arvidson stated that the communities involved
had a very good chance of receiving Exxon's approval to
this agreement if they stood together and approached
Exxon with a united front. He added that Exxon had
signed an agreement similar to this one with the state.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED UNANIMOUSLY.
VI.
COUNCIL DISCUSSION:
NOLL asked the administration to support the
Institute of Marine Science, Seward Marine Station, (IMS)
in its efforts to be selected the research center to
study the effects of the PWS oil spill. Noll stated
that, although IMS is the logical choice, having a
facility and scientists in place, there is a move to
center research in Cordova. Schaefermeyer reported that
Senator Stevens has stated that Cordova has suffered the
greatest economically as a result of the spill, and he
views locating the research center there as a way to help
mitigate the lost fishing revenues. Noll stated that he
would like to work with the administration in drafting
letters to stevens, Murkowski, Young, the Governor and
our senators and representative in Juneau.
NOTE: O'Brien arrived at 7:00 p.m.
DUNHAM stated that several local merchants have
complained to her about their problems getting checks
from VECO to cover large credit accounts. Many cannot
afford to restock their shelves for the upcoming summer
season because of VECO' s outstanding debts to them.
Schaefermeyer stated that he had met with VECO several
times concerning this issue and had been assured that
merchants are paid wi thin 10 days of receipt of an
invoice for payment. Bencardino stated that merchants
in Cordova had complained in Juneau about the same
problem and were assured by Exxon's lobbyist that this
problem would be taken care of.
VII.
CITIZENS' DISCUSSION: None
I
I
I
101
PAGE 101
SPECIAL MEETING - MAY 15, 1989
VOLUME 24
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
IX.
ADJOURNMENT:
The meeting was adjourned at 7:20 p.m.
I.
CALL TO ORDER:
~~
L ~ ~ "..4 a ~- .
Harr . Gieseler
Mayor
MEETING - MAY 22, 1989
VOLUME 24
The May 22, 1989, regular meeting of the Seward
City Council was called to order at 7:30 p.m. by Mayor
Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmernber O'Brien led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmern-
bers Hilton, Noll, O'Brien and
Simutis (Dunham was absent,
Meehan was at Baccalaureate)
Present also: City Manager Royle, Deputy City
Manager Schaeferrneyer, City
Attorney Arvidson, Engineering
& utilities Manager Diener,
utility Engineer Anderson,
Administrative Assistant Martin,
Interim Finance Director
Gifford, Parks & Recreation
Director Yanez, Port Marketing
1 (V1
SEWER RATES/RESO:
CITY CLERK/RESO:
PAGE 102 REGULAR MEETING - MAY 22, 1989
VOLUME 24
Director Gates, Harbormaster Singleton,
Police Chief Bencardino, SGH Administrator
Campbell, and Acting City Clerk Jones
IV.
APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE MAY 8 AND MAY 15,
1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY
HILTON AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
Deputy City Manager Schaefermeyer requested the
addition of four items to the agenda as follows:
& Gagnon,
regarding
1. May 22, 1989, letter from Atkinson, Conway
Inc. on behalf of Metco to Fred Arvidson
proposed Resolution No. 89-041.
2. May 22, 1989, memorandum from Schaefermeyer
concerning proposed Resolution No. 89-050 and the Small
Boat Harbor Master Plan.
3. Proposed Resolution No. 89-051 - Added to
XI ( C ) ( 3 ) .
4. Proposed Resolution No. 89-052 - Added to
XI (C) ( 4) .
HILTON MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND
CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall was not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
HILTON MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY 0' BRIEN AND
CARRIED UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-047; amending rates for
sewer charges commencing July 1, 1989 was approved;
2. Resolution No. 89-048, designating
Patricia J. Jones as acting city clerk was approved;
I
I
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PAGE 103
REGULAR MEETING - MAY 22, 1989
VOLUME 24
ln2
3. Resolution No. 89-049, awarding a contract ELECTRIC llETER
for electric meter reading was approved; READ/CON: RESO:
(Sewarrt Const.Svs)
4. May ll, 1989, letter and January 20, 1989,
invoice from HTGP&B for reorganization/codification of
the Seward City Code totalling $6,489.30 was approved for
payment;
5. April 24, 1989, invoice from Golden Valley
Electric Association for Seward's share of legal services
on behalf of Bradley PMC-March, 1989, totalling $21.52
was approved for payment;
6. April 30, 1989, invoice from Brittain,
Mersereau & Pentlarge for legal services totalling $49.95
was approved for payment;
7. May 18, 1989, memorandum from Interim
Finance Director Gifford regarding Price Waterhouse FY88
Audit was noted for information;
CATTY,
(CODIFICATIon,
CITY CODE)
C. ATTY:
C, ATTY:
AUDIT /FY 88
PRICE WATERHOUSJ
8. Settlement of IBEW COLA grievance as GRIEVANCZ/IBZW
recommended by Deputy City Manager Schaefermeyer was COLA - SettleMent)
approved;
9. The PCI settlement agreement was approved LITIGATION:
as recommended by Deputy City Manager Schaeferrneyer and PCI SETTLEllENT
City Attorney Arvidson;
10. Invoices from Taylor & Hintze for legal C. ATTY:
services pursuant to the PCI settlement agreements were
approved for payment as follows:
February, 1989 - $1967.10
March, 1989 - $5307.46
11. The following proclamation of the Mayor PROCLAHATIONS:
was noted for information:
May 24, 1989 - NATIONAL RECREATION & PARKS
ASSOCIATION DAY
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law regarding the proposed
Fiscal Year 1990 General Fund and Enterprise Funds
operating and capital budgets, was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
X.
PRESENTATIONS WITH PRIOR NOTICE:
PUBLIC HEARINGS/
BUDGETS:
A. DON COISMAN, 604 6th Street, addressed the CIT. DISCUSSION:
council on his utility dispute. He requested a change
in!;
PAGE 104 REGULAR MEETING - MAY 22, 1989
VOLUME 24
in the structure of the utility billing to allow a
vacancy rate factor. He stated that when his rentals
were empty he still paid the full amount of water and
sewer rates. Gieseler asked about installing separate
meters. Diener stated that it would be costly but he
would work towards some solution to the problem. Gifford
mentioned that Coisman owed over $30,000 to the city for
past utility bills which have accumulated over the past
eight years. 0' Brien stated that he would like to
continue the discussion under Council discussion later
in the meeting.
B. EUGENE MUMFORD was not present to address
the Council on the Police Liaison/Seward Schools issue.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing & Enactment:
None
C. Resolutions:
1. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
CON:
i,Afognal: Logging
Gravel Extraction &
Uaintenance Agreemt.
4th of July Creek)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A MAINTENANCE AND GRAVEL EXTRAC-
TION AGREEMENT WITH AFOGNAK LOGGING.
Jones noted that the resolution had been
postponed from the May 8, 1989, meeting, and it was on
the floor for action.
O'BRIEN asked if the price of the gravel was
being disputed. Schaefermeyer stated that the term and
the exclusive rights were the only issues unresolved at
the time the agreement was brought before Council. The
royalty price agreed upon was $.50 per yard for all
gravel over 50,000 yards.
GIESELER stated that he was not in support of
the resolution. He suggested that the gravel should be
sold to whoever wants it and the city should offer it
for sale. HILTON concurred stating that he did not
think the city should be giving the gravel away.
I
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PAGE 105
REGULAR MEETING - MAY 22, 1989
VOLUME 24
DIENER stated that the 4th of July creek needed
to be maintained by someone to keep the channel open.
He estimated that between 50,000 and 100,000 yards of
gravel were removed annually depending on the amount of
the water flowing down. He stated that the city would
need to hire someone to maintain the creek should the
gravel be put out for bid. In response to a question
from HILTON about the cost of maintenance, he stated that
it would vary depending on the time spent and equipment
needed to do the job.
NOTE: MEEHAN arrived at 7:54 p.m.
HILTON stated that he would like to see the
North Dock finished soon and that gravel was needed for
fill at the dock site.
GIESELER suggested that the administration find
out what the market value of the gravel is, then put it
up for bid. HILTON and MEEHAN agreed stating that it
would be in the best interest of the city to sell the
gravel for as much as it will bring.
O'BRIEN stated that he supported the agreement
with Afognak Logging because 4th of July Creek was a
problem stream and Afognak could continue maintaining it
as they have been doing in the past. He noted that the
city could have a liability if the gravel didn't sell,
but the agreement assured the city of maintenance and a
royalty of $.50 per yard after the first 50,000 yards
were extracted.
THE QUESTION WAS CALLED AND THE
RESOLUTION NO. 89-041 FAILED WITH FOUR
O'BRIEN VOTING "YES", AND NOLL ABSTAINING.
APPROVAL OF
"NO" VOTES,
2. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, IDEN-
TIFYING PRIORITIES FOR SMALL BOAT
HARBOR IMPROVEMENTS.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
050; THE MOTION WAS SECONDED BY MEEHAN.
SIMUTIS asked if a smaller boat lift would be
installed at the Small Boat Harbor should the improve-
ments be made. Singleton replied that all lift opera-
tions would be moved to the Seward Marine Industrial
Center.
105
SBH IlIPROVEUENTS/
RESO:;.,
(Identifying
Priorities)
", ! jl,
PAGE 106
REGULAR MEETING - MAY 22, 1989
VOLUME 24
GIESELER stated that the
appropriated for Harbor improvements some
be used for this project.
$1.7 million
time ago would
DIENER stated that the purchase of a 250-ton
travel lift and moving of the Small Boat Harbor lift
could wait, but he wanted to begin paving in the small
boat harbor this summer. The paving would include the
space opposite the boat-launch ramp for 30 day parking,
space north of Texaco to the dump station, and if
possible, the road to Old Airport Road. Half of the
parking north of the Coast Guard building will be lost
because the land is leased to the Alaska Railroad.
SINGLETON added that he wanted to store boats
and trailers in the area north of Texaco. In answer to
a question from Gieseler, he stated that a designated
area in SMIC would be graded and improved for the stor-
age of boats there. Once the boats were moved out of
the small boat harbor, the boat owners would have to
drive around to service their boats.
DIENER reported that the North Dock could be
utilized to handle the larger vessels if an area was
paved for cargo and the water line was extended down to
the dock. The Small Boat Harbor would be utilized by
the larger vessels only for offloading fish. He stated
that approval of Resolution No. 89-050 would identify
priorities for DOT/PF; however each project would be
brought before the council for approval before the work
was actually be done.
HILTON asked about the status of the Nash Road
Boat Harbor breakwater and dredging. Diener stated that
there was not enough money to pursue that project.
SCHAEFERMEYER advised the council that the
governor has the option of using unspent funds to retire
the state debt, so the $1.7 million allocated for Small
Boat Harbor improvements should be utilized by the city
soon.
THE QUESTION WAS CALLED AND RESOLUTION NO. 89-
050 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
3. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPRO-
PRIATING FUNDS FOR REPAIR OF THE
SYNCROLIFT.
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PAGE 107
REGULAR MEETING - MAY 22, 1989
VOLUME 24
HILTON MOVED TO APPROVE RESOLUTION NO. 89-051;
THE MOTION WAS SECONDED BY SIMUTIS.
HILTON stated that he did not realize the
syncrolift had broken. He asked why the ships were not
being moved upland for repairs. Singleton replied that
the cradles were not in place yet. Mr. Pruitt has until
August 31, 1989 to install the cradles which transport
the ships upland. The city has a contract with Mr.
Pruitt for maintenance of the facility.
In response to a question from Hilton regard-
ing insurance, Schaefermeyer stated that the city policy
would cover the property damages, but Pruitt's insurance
would ultimately pay for the total cost of the damage.
He stated that the city should be able to recover all
interest and revenue lost due to this accident, and be
reimbursed for all expenses incurred. He stated that
Pruitt will indemnify the city and there is potential
for recovery.
GIESELER asked the administration to examine
the insurance policy closely stating that the city should
not have to cover all of the cost.
THE QUESTION WAS CALLED AND RESOLUTION NO. 89-
051 WAS UNANIMOUSLY APPROVED BY THE COUNCIL.
4. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING AMENDMENTS TO THE SPRING CREEK
CORRECTIONAL CENTER BUDGET AND AP-
PROVING PRISON INDUSTRIES/HOBBYCRAFT
ADDITIONS.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
052; THE MOTION WAS SECONDED BY HILTON.
The Council examined the resolution since it
was presented as a last minute item.
GIESELER asked City Attorney Arvidson to
address the Council on the background regarding the
resolution. Arvidson explained that the city needs to
reaffirm and recognize the defense agreement entered
into one year ago between the city of Seward and DOT/PF.
Before the Prison Industries/Hobbycraft Workshop addi-
tion can be built, the Project Services Management
Agreement with DOT/PF needs to be extended. This agree-
107
SCCC BUDGET A/lEND-
!1ENTS/ RESO:
PRISON INDUSTRI~S
HORBYCRAFT ADDI-
TIONS
.... ;-,-
i -i"
PAGE 108
REGULAR MEETING - MAY 22, 1989
VOLUME 24
ment, which contains the indemnity agreement, had enabled
the city to enter into a defense agreement with DOT/PF.
The proposed resolution would also lay a foundation for
obtaining funds from other sources to build the workshop
instead of seeking funding from the State Legislature.
In summary, approval of the resolution would enable the
project to go out to bid with a contingency that the
contract would not be awarded until the Council deter-
mines that there are adequate funds to pay the cost of
construction and make payment of liquidated claims.
GIESELER stated that if the money remaining in
the project fund were to be used to pay the Samwhan
litigation, then the city would not have funds for the
project. Arvidson agreed but reminded the Council that
the state had agreed to pay the litigation through the
defense agreement and it was the state's problem to find
the funds for payment of the claim.
NOLL requested that the administration provide
a review of the status of the funds available.
SCHAEFERMEYER responded by stating that ac-
cording to the DOT/PF Project Budget, a copy of which
was included in the packets, there was approximately $2.8
million left in the fund. Diener stated that
approximately $2.2 million had been identified for this
project.
O'BRIEN objected to the short notice given to
the Council on such an important and complicated issue
and stated he was not prepared to vote at this time.
In response to a question from Gieseler about
the time frame involved, Schaefermeyer stated that the
state wanted to begin the 60-day process immediately.
DOT/PF would then have a good idea of what the cost of
the project would be. He confirmed that there was only
enough money to either pay the claim or to build the
project, but not enough to do both. He stated that the
state would seek funding from the legislature and if they
could bid the project now, they could approach the
governor for the funds to pay either the claim or build
the project.
GIESELER agreed with O'Brien that he would like
to hold a work session to discuss this further. NOLL
concurred.
SCHAEFERMEYER noted that the state was prepared
to seek the funds from the Legislature to build the
project and pay the claim notwithstanding the city of
Seward. He said that this gives the city the opportunity
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PAGE 109
REGULAR MEETING - MAY 22, 1989
VOLUME 24
to try to structure an agreement with DOT/PF that will
protect the city from taking a legislative hit in Juneau.
O'BRIEN MOVED TO POSTPONE ACTION ON RESOLUTION
NO. 89-052 UNTIL JUNE 12, 1989; NOLL SECONDED THE MOTION.
THE QUESTION WAS CALLED AND PASSED WITH FIVE "YES" VOTES
AND SIMUTIS VOTING "NO".
XII. UNFINISHED BUSINESS:
None
XIII .
NEW BUSINESS:
A. Appointment of Trade Board Member.
GIESELER NOMINATED DOUG LECHNER TO THE TRADE
BOARD TO FILL THE SEAT VACATED BY THE RESIGNATION OF
MADELYN YERDEN-WALKER. LECHNER WAS APPOINTED WITH NO
OBJECTION FROM THE COUNCIL.
Member.
B. Appointment of Communi ty Hospital Board
GIESELER ACCEPTED THE RESIGNATION OF PAUL
DIENER FROM THE COMMUNITY HOSPITAL BOARD. HE STATED THAT
THE BOARD DID NOT HAVE A RECOMMENDATION FOR THE VACANT
SEAT AT THIS TIME. NO ACTION WAS TAKEN.
GIESELER thanked Diener for his service to the
community and expressed regret that he had resigned from
the Hospital Board.
XIV. CITY MANAGER REPORTS:
ROYLE noted the following:
1. ROYLE reported that he had attended the
Governor's Conference on Tourism on May 12 in Anchorage.
Governor Cowper gave a speech followed by a presentation
by Bill Miller, Chairman of the Alaska Tourism Marketing
Council, outlining the statewide publicity campaign being
funded for $4 million dollars by Exxon. He noted that
Schaeferrneyer had contacted Exxon and requested funding
for an advertising campaign for Seward, but he was
rejected. Also, the Kenai Peninsula Borough has received
$150,000 to mount a tourism enhancement campaign for the
Kenai Peninsula area.
2. Royle and Gates met with Larry Moore, from
TCS Video, to arrange for him to come to Seward on July
4 and film raw footage to put together a tourism/promo-
tion video tape for publicity purposes. Moore filmed the
video which was presented at the Alaska/Korea Trade fair.
Jog
TRADE BOARD
CAppointI'lent of
Doug Lechner to
fill vacant seat)
PAGE 110
REGULAR MEETING - MAY 22, 1989
VOLUME 24
3. The Korean Fam Tour, consisting of 15
Koreans, is scheduled to tour Seward on June 8 and 9,
1989. An invitation and detailed itinerary for the
Seward tour will be sent to the Council. The Chamber of
Commerce and the city of Seward have been working
together on this to insure that the Koreans receive a
thorough, enjoyable tour. When they depart on the Alaska
Railroad, they will be presented with a photographic
record of their stay in Seward.
4. In early June, Royle will be attending a
breakfast meeting with some Hollywood film producers
where he will present a photo album of Seward.
5. The spring city clean up was unsuccessful
this year due to the weather. However, the Boy Scouts
cleaned up along the Seward Highway. Notices have gone
out to some citizens encouraging them to clean up their
area of town. The railcar alongside the lagoon was
removed.
GATES presented an update of current p~rt
projects on which he 1S working, including ongo1ng
negotiations between Samco and Chugach Alaska Corporation
for hardwood to manufacture chopsticks, work on the SMIC
North Dock agreement between the city and Chugach Alaska
Corporation, negotiations on the co-generation agreement
with Chugach Alaska Corp. regarding Lease Agreement .3,
and substantial completion of the Inlet Fisheries Dock
including an engineering review which was just completed.
Negotiations are underway with Northern Stevedoring for
a lease of one to two acres at SMIC east of the Harbor
Fuel bulk petroleum storage tank for open storage and
possibly a warehouse.
GATES also reported that he is working with
Pruitt to insure that the cradles on the syncrolift
transfer system will be in place in August. The Cruise
Ship Rotterdam will make its maiden call to the Port of
Seward on Sunday, May 28. The Korean Consul General will
be in Seward on Wednesday, May 24. Senator Murkowski and
Admiral Yost will hold a public meeting on Wednesday, May
31, at 7:30 p.m. in the Council Chambers at City Hall.
ROYLE stated that Mr. Williams of the Alaska
Trolley Car Company extended an invitation to the Council
to ride the trolley at their convenience.
ARVIDSON gave an update on the Exxon reimburse-
ment agreement. He reported that Exxon agreed to provide
a re-draft of the their counterproposal on May 23 for
review. Negotiations will continue with a report to the
Council on May 24.
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PAGE 111
REGULAR MEETING - MAY 22, 1989
VOLUME 24
GIESELER INSTRUCTED THE CLERK TO SCHEDULE A
WORK SESSION AT NOON, TUESDAY, MAY 23, 1989, IN ORDER TO
DISCUSS THE CITY ENTERPRISE BUDGETS.
xv.
COUNCIL DISCUSSION:
O'BRIEN stated that he had asked for an
itemized billing from Perkins Coie for their services at
the last council meeting. In answer to his question,
Schaeferrneyer stated that he has requested this informa-
tion. He also addressed the utility billing structure.
He stated that he was aware that vacancies were sometimes
high, especially in the winter, and asked the administra-
tion if they could possibly work out a "vacation rate"
to cover these instances when property owners had
vacancies in their units.
DIENER answered that he would work on the
problem. He stated it was difficult to know when units
were vacant. If individual meters were installed, this
would solve part of the problem but it would cost the
city more than was reasonably practical. At this time,
the water and sewer are not billed on a meter system in
the city. He stated that he was aware of this problem
for some time but he had not found any reasonable
solution at this point.
HILTON asked the administration why there was
not a policy in effect to handle delinquent accounts,
stating that some accounts were years behind. He also
wanted to know why this was not brought to the attention
of the Council before.
SCHAEFERMEYER answered that even though there
were delinquent accounts for a long time, some of them
have judgments against them while others may have been
shut off or have signed payment agreements to pay their
debt over a period of time.
HILTON stated that customers should not be
allowed to get years behind in their payments. He could
understand keeping the service connected during the
winter months, but he suggested that if they will not pay
their bill, then their service should be discontinued.
He stated that if the administration needs the Council
to set forth a policy to collect debts, then that's what
will be done.
GIFFORD stated that there is a procedure for
notifying customers of delinquents accounts which is
implemented on a regular basis. Once the new computer
system is brought on line, it will be easier to track
customers.
111
BUDGETS:
Worl, Session
Scherluler!
1,,\,n
PAGE 112
REGULAR MEETING - MAY 22, 1989
VOLUME 24
GIESELER asked Harbormaster Singleton how the
fish cleaning building was proceeding. Singleton replied
that they were having trouble finding someone to build
it, but he hoped that by the next meeting he would have
something to report.
GIESELER INFORMED THE ADMINISTRATION THAT IN
THE FUTURE HE WOULD LIKE TO HAVE SOME OPTIONS PRESENTED
TO THE COUNCIL FOR REVIEW ON THE WATER UTILITY PROBLEM.
XVI. CITIZENS' DISCUSSION:
None
XVI I.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 9:55 p.m.
o~~~_,~-~
Patr~c~a J. Jones
Acting City Clerk
~...,..fi' ~--A..
ar . Gieseler
May r
I
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11"-
....".IL...
PAGE 113
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
I.
CALL TO ORDER:
The June 12, 1989,
Seward City Council was called
Mayor Harry E. Gieseler.
regular meeting of the
to order at 7:30 p.m. by
II.
OPENING CEREMONY:
councilmember Noll led the pledge of allegiance
to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll and Simutis (O'Brien was
absent)
IV.
Present also: City Manager Royle, Deputy City
Manager Schaeferrneyer, City
Attorney Arvidson, Port Market-
ing Director Gates, Engineering
and utilities Manager Diener,
Parks and Recreation Director
Yanez, Interim Finance Director
Gifford, Harbormaster Singleton,
Fire Chief Gage, Public Works
Foreman Ainsworth, Police Chief
Bencardino and City Clerk Murphy
APPROVAL OF MINUTES:
MEEHAN MOVED TO APPROVE THE MAY 22, 1989"
REGULAR MEETING MINUTES AS WRITTEN; THE MOTION WAS
SECONDED BY DUNHAM AND CARRIED UNANIM9pSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
Regular
Gieseler noted the following additions to the
Meeting Agenda, Resolutions [Item XI(C)]:
13. Proposed Resolution No. 89-066,
14. Proposed Resolution No. 89-067, and
15. Proposed Resolution No. 89-068,
copies of which had been included as inserts in the front
of Council's agenda packets and were available for public
review. In addition, Hilton requested that Consent
Calendar Item No. 2 be moved to the Regular Meeting
Agenda as Item No. XI(C) (16).
..'~ t
PAGE 114
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
Murphy asked that Council delete proposed
Resolution No. 89-065, Item No. XI(C) (12).
HILTON MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS
AND CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall gave a verbal report of the last Assembly
meeting. He noted that the Assembly had approved the FY
1990 borough budget and had voted to drop its membership
in both the Resource Development Council and the Alaska
Municipal League. Gieseler thanked Sewall for sponsoring
the borough resolution honoring retiring Seward Librarian
Jackie Deck.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
VII.
DALE CLEMENS, Small Boat Harbor, stated that
he was concerned about the administration's plans to move
the 50-ton travel lift from the Small Boat Harbor.
Clemens said that this would have a detrimental effect
on his business. He also encouraged the Council to
reject plans to pave the 30-day parking lot since paving
it would eliminate winter boat storage in that area.
DARLENE LUST, Small Boat Harbor, owner of
Sailing, Inc., spoke in opposition to moving the travel
lift to SMIC. She stated that this would be in direct
violation of her lease agreement with the city. Lust
further stated that the Council had assured her last Fall
that the travel lift would not be moved from the Small
Boat Harbor.
LEE GORDANIER, 218 Marathon Drive, stated that
he, too, was opposed to moving the travel lift. He noted
that he and his partner had made a substantial investment
in the Boat Harbor, and their business would suffer if
the travel lift was no longer being operated in the SBH.
SCOTT D. LUST, Small Boat Harbor, also spoke
in opposition to moving the travel lift, noting the
adverse impact such a move would have on his boat repair
business.
VIII.
APPROVAL OF CONSENT CALENDAR:
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PAGE 115
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. The following actions were taken:
l1f-)
1. Resolution No. 89-053, accepting funding COMP PLAN/RESO:
form the Kenai Peninsula Borough for update of the Seward
Comprehensive Plan, was approved;
2. Moved to Regular Meeting Agenda;
3.
Argetsinger,
ling $45.41,
June 1, 1989,
Johnson & Brecht
was approved for
invoice from Wohlforth,
for legal services total-
payment;
C.ATTY:
4. June 6, 1989, request from Chamber of FIREWORKS PEfU.-UT:
Commerce for fireworks permit for Fourth of July display
was approved; and
5. Alaska Families United, dba Parents GAMES OF CHANCE
united, Inc., request for authorization to conduct a & SKILL:
Monte Carlo night on July 4, 1989, was approved.
IX.
PUBLIC HEARINGS:
A. Notice of public hearing, as posted and
published as required by law, regarding the proposed
LEASE of approximately 900 sq. ft. of city-owned property
described as Boardwalk Lease site No.9, immediately
adjacent to the Seward Small Boat Harbor Boardwalk
between "B" and "D" ramps, within Block 6, oceanview
SUbdivision, to Seward Chamber of Commerce, for the
purpose of constructing a new Salmon Derby booth, was
noted and the public hearing was opened; no one appeared
in order to be heard and the public hearing was closed.
B. Notice of public hearing, as posted and
published as required by law, regarding proposed water
rate revisions was noted and the public hearing was
opened; no one appeared in order to be heard and the
public hearing was closed.
c. Notice of public hearing, as posted and
published as required by law, regarding the proposed FY
1990 general fund and enterprise funds operating and
capital budgets was noted and the public hearing was
opened; no one appeared in order to be heard and the
public hearing was closed.
PUBLIC HEARINGS/
BOARDWALK LEASE:
PUBLIC HEARINGS/
WATER RATES:
PUBLIC HEARINGS/
BUDGETS:
D. Notice of public hearing, as posted and PUBLIC HEARINGS/
published as required by law, regarding a proposed ENCROACHMENT:
ENCROACHMENT PERMIT as requested by Brad Snowden, dba New
Seward Hotel and Saloon, to place two ornamental street
,~- r
PAGE 116
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
lights on the sidewalk fronting Lots 8-16, Block 9,
Original Townsite of Seward, was noted and the public
hearing was opened.
BRAD SNOWDEN, 525 sixth Avenue, stated that he
had presented evidence of insurance as required by the
permit to the city.
No one else appeared in order to be heard and
the public hearing was closed.
X.
PRESENTATIONS WITH PRIOR NOTICE:
CIT.DISCUSSION: A. MARGARET BRANSON, 500 Fourth Avenue,
President of the Cook Inlet Aquaculture Association Board
of Directors, introduced JEFF HETRICK, manager of the
Trail Lakes Fish Hatchery. Hetrick briefly reviewed for
the Council the fish enhancement programs currently
underway at the hatchery and noted changes which had been
made in its operations since CIAA had assumed management
of the facility. Branson thanked the local Fish Meal
Plant for its help wi th the hatchery's experimental
feeding programs. She also noted that CIAA has invested
$300,000 in capital funding at the hatchery this year.
Gieseler congratulatedd Branson, the first female
president of the CIAA Board.
CIT.DISCUSSION: B. LORI KING, representing Exxon, reported
that Exxon had embarked on a program to assist local
businesses which have lost employees to the oil cleanup
effort. She noted that the "community Employment
Assistance Program" is now underway, with plans to
contact each employer in the city to assess its needs and
to offer Exxon's aid in filling vacant positions. King
stated that Exxon had compiled a list of over 1,000
Alaska residents interested in taking non-cleanup jobs
in Seward, Valdez and Cordova. She also noted that Exxon
would be providing housing outside the city limits to
accommodate those who are brought to town to take the
available jobs.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing & Enactment:
None
C. Resolutions:
I
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PAGE 11 7
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
1. copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING AMENDMENTS TO THE SPRING CREEK
CORRECTIONAL CENTER BUDGET AND AP-
PROVING PRISON INDUSTRIES/HOBBYCRAFT
ADDITIONS.
Murphy stated that there was a motion on the
floor for adoption of the resolution.
Schaefermeyer noted that he had distributed
some prison proj ect budget information which had been
provided by DOT/PF. He also noted that both Roger Head
and Jerry Watkins were available to answer any questions
the Council might have about this proposal.
Gieseler asked how approval of this budget
amendment would affect the payment of Samwhan' s con-
struction claim. He stated that he did not want the
city to suffer in Juneau next year when the state goes
to the Legislature for funding to pay the outstanding
claim.
ROGER HEAD stated that the position of the
Governor is very firm in regards to requesting addition-
al financing to cover the cost of the prison industries
addition. He noted that there has been an argument that
legislative approval was never fully received since the
Legislature did not approved repayment of the total
amount needed to repay the original certificates of lease
participation. He stated that since the proj ect has been
working so well, these questions were pushed aside, and
the Governor is reluctant to do anything to once again
raise this issue.
Dunham stated that she had served on the State
Prison Industries Board for several years and realized
the importance of providing a prison industries program
in a long term facility. She stated that she would
support the resolution.
Gieseler concurred with Dunham's sentiments,
but stated that he still objected to approving anything
which could be detrimental to the city's efforts to
secure funding for the transmission line upgrade next
year. Schaefermeyer stated that if the Council failed
to approve the recommended budget amendment, DOT/PF would
117
PRISON/RESO:
(Prison Ind.)
1... r"
i ~ (.11
r ,~
PAGE 118
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
go to the Legislature for funding for the prison in-
dustries project. Either way, the city would likely
suffer when capital dollars are doled out next year.
THE QUESTION WAS CALLED AND RESOLUTION NO. 89-
052 WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
BOARDWALK/ RE- )70/ 2. Copies having been made available to
RESO: (Chamber the public, Gieseler noted by title only a proposed
Lease, Site #9) resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A BOARDWALK SITE LEASE WITH THE
SEWARD CHAMBER OF COMMERCE.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-054;
THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS-
LY.
WATER TARIFF/RESO: 3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, SETTING
RATES AND CHARGES FOR WATER SERVICE
COMMENCING JULY 1, 1989.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-055;
THE MOTION WAS SECONDED BY HILTON.
Meehan noted that he agreed that a rate in-
crease was necessary; however, he could not support a
25% increase. Dunham concurred.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH GIESELER, HILTON, NOLL AND SIMUTIS VOTING
"YES" AND DUNHAM AND MEEHAN VOTING "NO".
BUDGET/RESO:
(Gen. Fund)
4. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE CITY OPERATING BUDGET FOR THE
FISCAL YEAR BEGINNING JULY 1, 1989.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-056;
THE MOTION WAS SECONDED BY DUNHAM AND CARRIED BY UNANI-
MOUS VOTE OF THE COUNCIL.
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PAGE 119
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
5. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE WATER AND SEWER FUND OPERATING
BUDGET FOR THE FISCAL YEAR BEGINNING
JULY 1, 1989.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-057;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANI-
MOUSLY.
6. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE ELECTRIC FUND OPERATING BUDGET
FOR THE FISCAL YEAR BEGINNING JULY
1, 1989.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-058;
THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANI-
MousLy.
7. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE HARBOR FUND OPERATING BUDGET FOR
THE FISCAL YEAR BEGINNING JULY 1,
1989.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
059; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
8. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE FISCAL YEAR 1990 BUDGET FOR
SEWARD GENERAL HOSPITAL AND APPRO-
PRIATING $346,321 OF LOCAL SUPPORT.
11f.1
, .
BUDGET/RESO:
(Water/Sewer)
BUDGET/RESO:
(Elec. Dept.)
BUDGET/RESO:
(Harbor)
BUDGET/RESO:
(Hospital)
.. n ,-
. ",I!
CIP/RESO: (FY90
Plan Adopted)
ENCROACHMENTS/
OTS/RESO:
(Snowden Ene.
Permit for
Street Lamps
GRANTED)
PAGE 120
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-060;
THE MOTION WAS SECONDED BY DUNHAM.
In response to a question from Noll, Schaefer-
meyer explained that the $346,321 of local support
consisted of the full estimated 1% sales tax for the
coming fiscal year ($296,000) plus approximately $50,000
which the city realized as additional state revenue
sharing as a result of claiming hospital receipts as a
portion of the city's locally generated revenues. This
latter sum would be used to repay any funds borrowed from
the city to meet hospital operating needs over the next
fiscal year.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
WITH FIVE "YES" VOTES AND HILTON "ABSTAINING". (Hilton
is an employee of Seward General Hospital.)
9. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE ANNUAL CAPITAL BUDGET PLAN FOR
FISCAL YEAR 1990.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-061;
THE MOTION WAS SECONDED BY HILTON.
In response to a question from Meehan, Schaef-
ermeyer stated that only the "Internal Funding" items
had already been approved by the Council as part of the
various budgets it had approved. All other items would
come back to the Council for approval.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
10. copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, GRANTING
AN ENCROACHMENT PERMIT TO BRAD SNOW-
DEN, DBA NEW SEWARD HOTEL AND SAL-
OON, FOR THE INSTALLATION AND OPERA-
TION OF STREET LAMPS.
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REGULAR MEETING - JUNE 12, 1989
VOLUME 24
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-062;
THE MOTION WAS SECONDED BY HILTON AND CARRIED WITH FIVE
"YES" VOTES AND NOLL VOTING "NO".
11. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE EXECUTION OF LEASING
SCHEDULE NO. 004 TO THE EQUIPMENT
LEASE PURCHASE AGREEMENT BY AND
BETWEEN THE CITY AND CITICORP NORTH
AMERICA, INC., AND PROVIDING FOR
RELATED MATTERS.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-064;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE
"YES" VOTES AND HILTON "ABSTAINING".
12. Deleted.
13. copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A USE PERMIT TO CHUGACH ALASKA
CORPORATION TO ALLOW THE CONSTRUC-
TION OF A BRIDGE ACROSS SPRING CREEK
FOR USE AS A LOG ACCESS ROAD.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-066;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED BY UNANI-
MOUS VOTE OF THE COUNCIL.
14. copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A GRAVEL SALES AGREEMENT BETWEEN
THE CITY AND CHUGACH ALASKA CORPORA-
TION.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-067;
THE MOTION WAS SECONDED BY SIMUTIS.
121
EQUIPMENT/PURCH/
RESO: (Hospital
equipment purch)
PERMITS/RESO:
(CAC Use Permit
for bridge
across Spring
Creek)
SMIC/CON-3~
RESO: (Gravel
Sales Agrrnt.
w/CAC)
1??
HARBOR/GRANTS/
RESO: (Amend.
No. 1 to SBH
TORA)
PAGE 122
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
Noll asked the Mayor to rule on his request to
abstain from voting on this issue, stating that he was
involved in negotiations to export gravel with a com-
petitor of the named contractor. Gieseler ruled that a
conflict of interest did exist.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FIVE "YES" VOTES AND NOLL "ABSTAINING".
15. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING AMENDMENT NO. 1 TO SBH TORA NO.
K78405/53775 BETWEEN THE CITY AND
THE DEPARTMENT OF TRANSPORTATION AND
PUBLIC FACILITIES.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
068; THE MOTION WAS SECONDED BY HILTON.
Schaefermeyer noted that this amendment iden-
tified projects which the state would allow the city to
construct using state funding provided under the TORA
for Small Boat Harbor expansion. He added that approval
of this resolution would not bind the city to relocating
the 50-ton travel lift.
Diener stated that the city and DOT were still
engaged in clarification of some issues, and he briefly
reviewed the list of projects and the points of ongoing
discussion. He encouraged the Council to approve the
resolution at this meeting. Schaefermeyer stated that
he would be coming back to the Council on June 26 for
approval to order the new travel lift and to proceed with
the paving projects.
Schaefermeyer noted that the Boat Harbor was
in desperate need of additional parking spaces. He
further noted that the economies of operating the 50-ton
boat lift at this time were marginal; however, such an
operation at SMIC would be very economic. schaefermeyer
stated that the city could ill afford to operate boat
lifts on both sides of the Bay since this would require
two separate crews. He added that, given the tourist
orientation of the Small Boat Harbor, there would appear
to be a higher and better use for the property currently
used for public boat storage.
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REGULAR MEETING - JUNE 12, 1989
VOLUME 24
Noll stated that the issue of the 50-ton lift
needed additional public airing. Meehan concurred,
stating that he wanted to make it clear that his "yes"
vote on this resolution did not indicate authorization
to move the lift from the SBH. Dunham agreed.
In response to a question from Hilton, Schaef-
ermeyer stated that it would be possible to lease the
small lift to a private operator in the SBH.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
BY UNANIMOUS VOTE OF THE COUNCIL.
16. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF DECORATIVE
SIGNS AND APPROPRIATING FUNDS.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-063;
THE MOTION WAS SECONDED BY SIMUTIS.
In response to a question from Hilton, Dunham
briefly described the three signs which would be ordered
pending approval of this resolution. She noted that
sketches of the signs were displayed on the board.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
RECESS:
The meeting was recessed at 9: 15 p. m. and
reconvened at 9:27 p.m.
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
123
SIGNS/PURCHASING/
RESO: (Approp.
funds to purch.
decorative signs
for highway)
A. MEEHAN MOVED TO APPROVE PAYMENT OF A CLAIM CL1HMS FOR DAMAGES:
FOR DAMAGES TOTALLING $93.00 AS FILED BY JOHN VONHOF; THE (Vonhoff Claim
MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. APPROVED)
B. Community Hospital Board Appointment.
Gieseler indicated that, having received no recommenda-
tion from the Hospital Board regarding appointment to
the vacant seat created by Diener's resignation, he had
asked Wesleyan Nursing Home Administrator Richard Jones
to consider accepting the seat. Jones had indicated his
, ?,A
PAGE 124
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
willingness to do so if he receives an okay from the
Wesleyan Board of Directors.
XIV.
CITY MANAGER REPORTS:
ROYLE noted that he had met with several
Hollywood production managers in Anchorage to encourage
them to consider Seward as a possible location for some
upcoming film. However, the production managers had
found all of Alaska wanting in major infrastructure and
skilled film professionals.
ROYLE also noted that the Korean Fam Tour had
given city and state officials a good awareness of the
Korean perspective with regards to tours to Alaska. He
noted that the biggest obstacle to major tourist activity
from Korea at this time was the lack of direct air
flights between Seoul and Anchorage. In addition, the
Koreans had found Alaska to be very expensive. Royle
added that Seward had made a good impression with the
Korean representatives, noting that they had particularly
appreciated the Korean food snack provided for the train
trip to Anchorage.
ARVIDSON explained that proposed Resolution
No. 89-065 had been deleted from the agenda because the
"Oiled Mayors" had been unable to reach a reimbursement
agreement with Exxon. He stated that another meeting
was scheduled for June 17, and he hoped to have something
for the Council to consider at its June 26 meeting.
GATES asked for direction from Council regard-
ing his informational memorandum dated June 5 concerning
Navy Homeporting plans, specifically his proposal that
the city go forward with a request for qualifications
and interest for private infrastructure development. He
noted that one private party had come forward to express
an interest in developing all or a part of the needed
infrastructure.
GATES stated that he planned to present a
cogeneration agreement between the city and chugach
Alaska Corporation for approval of the Council at the
next meeting. He noted that Chugach had received its
first load of logs on Friday.
GATES noted that he had received two prelim-
inary requests for lease from a private source wishing
to construct dormitory facilities for fish processing
employees and a restaurant. In addition, Northern
Stevedoring had expressed an interest in leasing two lots
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PAGE 125
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
at SMIC and had indicated that development plans would
be submitted for Council's review at the next meeting.
GATES reported that the new consul General of
South Korea had visited Seward last week and had appeared
to be very knowledgeable about Seward. He also noted
that there was one segment of the Korean tourist industry
open to Seward. He suggested that the city aggressively
pursue syphoning off some of the Europe/ Seoul passengers
who change planes in Anchorage and are allowed to remain
in the state for up to 72 hours. Gates stated that since
the Fam Tour participants had not been pleased with the
overnight accommodations they had received in Seward, it
might be possible to pursue the development of day trips.
GATES reported that he had been approached by
three different companies interested in developing a
disposal site for oily waste. He said that similar
facilities in Anchorage and elsewhere were clean opera-
tions, and he asked Council to begin thinking about the
possibility of allowing such a facility to locate in
Seward.
xv.
COUNCIL DISCUSSION:
NOLL reported that Gates had addressed the
Export Council of Alaska at its last meeting and had made
such a good impression that the Council had decided to
hold its next meeting in Seward. Noll also reported that
at least one tour operator in Seoul, Super Star Travel,
would be chartering planes for tours to Alaska.
DUNHAM noted that Valdez contended that its
tourist industry had been destroyed for seven years
because of the impact on the community of the pipeline
construction effort. She suggested that the oil spill
cleanup effort was likely to have a similar effect on
Seward. She noted that all hotel accommodations are
filled by oil spill workers or others involved in the
cleanup, and other city services are taxed.
DUNHAM also stated that she has declined to
accept another term on the Prison Industries Board. She
stated that she has recommended two names to the Gover-
nor of Seward residents who would make good replacements.
In response to a question from GIESELER, Yanez
stated that the requested trash cans and porta-potties
would be in place at the waterfall tomorrow.
GIESELER reported that two U. S. Navy ships
would be visiting Seward on July 4. Schaefermeyer noted
1, ? ft
PAGE 126
REGULAR MEETING - JUNE 12, 1989
VOLUME 24
that he would be meeting with key city department heads
on Tuesday to begin planning Fourth of July activities,
and this would be discussed at that time.
GIESELER thanked and congratulated Dunham and
Noll for their part in organizing the sign committee.
He also asked for a status report on the Fiber optics
Cable site. Schaefermeyer noted that the company is
negotiating for a portion of the Leirer industrial
property, and the tidelands lease is still in the attor-
ney's office for review. He added that construction
should start this year with completion scheduled for
1990.
GIESELER asked the clerk to schedule a special
meeting and public hearing on Thursday, June 15, at 7:00
p.m., to hear comment on the planned Small Boat Harbor
improvements and the fate of the 50-ton travel lift.
GIESELER stated that if funds were available,
he would request that the city purchase an original oil
painting of Seward by a Kodiak artist. He noted that
the painting is on display at Bardarson' s studio and
would be a beautiful addition to city Hall.
HILTON reported that the new cardiac monitor-
ing equipment was scheduled for delivery and installation
next week.
XVI. CITIZENS' DISCUSSION:
None
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 10:08 p.m.
,:.,...
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Mayor
.
? ~. '-<(t~
Gieseler
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SEAL.
Seal)
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PAGE 127
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
1.
CALL TO ORDER:
The June 15, 1989,
Seward City Council was called
Mayor Harry E. Gieseler.
special meeting of the
to order at 7:00 p.m. by
II.
OPENING CEREMONY:
Councilmember Simutis led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Meehan, O'Brien and
Simutis (Noll was excused and
Hilton was absent)
Present also: city Manager Royle, Deputy City
Manager Schaefermeyer, Harbor-
master singleton, Engineering
and utili ties Manager Diener,
Interim Finance Director Gifford
and City Clerk Murphy
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM
AND CARRIED UNANIMOUSLY.
V.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published regarding proposed boat harbor improvements was
noted and the public hearing was opened.
GIESELER noted that letters had been received
from Seward Ships Chandlery (objecting to the purchase
of a 250-ton lift) and from Seward Chamber of Commerce
(asking that council consider the results of Clemens'
petition before making any decisions concerning the 50-
ton lift), and he asked the Clerk to entere these letters
into the record.
DALE CLEMENS, Small Boat Harbor, distributed
to the Council and the Clerk the results of a survey he
had circulated among both Small Boat Harbor and Downtown
business owners concerning the city's plan to move the
50-ton boat lift from the Small Boat Harbor. He noted
that some respondents had estimated a forty percent (40%)
loss of business should this occur. He further noted
127
PUBLIC HEARINGS:
(SBH Irnprvrnts)
1 ?9
PAGE 128
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
that this would be reflected in a loss of sales tax
revenue to the city. Clemens said that Hyett-Palma, in
its initial review and recommendations to the city and
the Enhancement Association, had recommended that the
travel lift remain in the Small boat Harbor and that boat
storage be improved on this side of the Bay. Clemens
suggested that in its efforts to "sell" SMIC, the city
had neglected the full service harbor located on the west
side of the Bay. He also suggested that, rather than
eliminate boat storage in the Small Boat Harbor, the city
should consider making more boat storage available.
Clemens stated that he had been involved in
tourism for a number of years, and he reminded the
Council that large numbers of tourists did not necessari-
ly mean that large numbers of dollars were being spent
in town. On the other hand, the loss of commercial
business would result in the loss of significant amounts
of money.
Clemens suggested that any available monies be
used to construct a dock on the north side of the Small
Boat Harbor from the T-Lift pit to the Railroad property
for cargo loading and unloading and for rigging vessels
in the water.
NEAL CAMERON, 525 Third Avenue, representing
the Chamber of Commerce Board of Directors, read the
letter from Chamber President Andy Patapoff which the
Mayor had noted earlier.
JIM PRUITT, Maple Street, asked the Council to
reconsider any plans to move the travel lift. He also
objected to the purchase of a 250-ton lift for SMIC.
Pruitt contended that city operation of such a large lift
would be in direct competition with his operation of the
shiplift.
DEAN LUST, Sailing, Inc., Small Boat Harbor,
stated that he was extremely pleased with the Harbor-
master's management of the Boat Harbor. However, he
objected to any plans to move the travel lift to SMIC.
DALE CLEMENS, Small Boat Harbor, referring to
Singleton's memorandum to the Council concerning his
revised Boat Harbor plan which included continued
operation of the travel lift in the SBH, objected to
Singleton's suggestion that the travel lift's capacity
be lowered to thirty tons. He stated that this would
make lifting a seiner marginal and suggested that if the
city was concerned that the 50-ton lift was "wearing
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PAGE 129
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
outll, a better use of funds might be to purchase a new
50-ton lift and forget about the purchase of a 250-ton
lift.
SCOTT LUST, Small Boat Harbor, stated that his
marine repair facility currently had two vessels in its
yard weighing approximately 55,000 pounds each. He
stated that he is beginning to see larger and larger
boats in the Harbor, adding that he would be opposed to
any effort to downgrade the travel lift.
JIM PRUITT, Maple Street, stated that the grid
needed repair and suggested that this would be a good use
of harbor funds. He added that driving sheet pile to the
west of the lift dock would provide the city with some
needed dock space.
RAYMOND SMITH, 13221 Reef Place, Anchorage,
99515, stated that the city's boat storage policy had
already caused him some distress. He suggested that if
the city moved all boat storage to SMIC, Anchorage boat
owners would probably spend less time and money in the
Small Boat Harbor and Downtown business establishments.
DALE CLEMENS, Small Boat Harbor, stated that
he was opposed to any policy which would prohibit boat
repair on the paved parking lots.
No one else appeared in order to be heard and
the public hearing was closed.
VI.
NEW BUSINESS:
A. Request for authorization to proceed with
harbor improvements. Schaefermeyer noted that the funds
in question were not available for harbor repairs, but
could only be used for new capital construction. In
response to a question from Dunham, he stated that the
funds were probably safe as long as the city had plans
in progress to utilize the funds within the next year.
However, if this did not occur, of if the funds remained
uncommitted or unspent, the Governor could reclaim the
remaining monies for state debt retirement. Schaefer-
meyer noted that Seward is the only community in the
state with unexpended funds from this 1978 state bond
issue.
Diener noted that the current administrative
proposal envisioned retaining the 50-ton lift in the
Small Boat Harbor and maximizing the use of the boat
storage area. Referring to a map of the SBH posted in
1. R I')
PAGE 130
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
Chambers, Diener outlined the city's proposal to pave
certain parking lots.
In response to a question from Dunham concern-
ing the possibility of providing more long term boat
storage in the area between Suneel and the grid, Single-
ton stated that this could cause problems because of the
increased traffic at X-Float and the location of power
lines in the vicinity. singleton also noted that, unlike
private boat storage facility operators, the city is
sometimes forced to remove "junk" boats from the Bay and
must provide storage for them until the lengthy derelict
vessel disposal process can be completed.
singleton also noted that the travel lift is
in good repair. He stated that his suggestion to
downgrade it to 30 tons was based on information he had
on file which stated that the largest boat currently
being lifted was the Kaya, weighing in at approximately
30 tons. He noted that downgrading the lift to 30 tons
would allow him to replace the steel cable with nylon
belts which would eliminate some of the problems inherent
with the use of steel cables. singleton stated ~hat he
had no objection to leaving the lift lias is", and added
that he wanted to find a weight limit which would both
satisfy the private operators and still allow the city
to move larger boats to SMIC for storage.
singleton also noted that boats within the
limits he had suggested could be stored on the paved lots
if they were properly blocked. He stated that he would
prepare a winter storage plan which would assure that
stored boats would be removed from city uplands in the
spring and would present that plan to the Council soon
for consideration.
In response to a question from Meehan, single-
ton stated that he would oppose any major outside work
on the paved lots, including sand blasting and painting.
He stated that heavy maintenance and pavement generally
do not work well together.
singleton, responding to Dunham, stated that
there is nothing in the current Code or Harbor regula-
tions which limit the length of stay of stored boats or
which limit what can be done in the way of maintenance
on boats stored on city property. He stated that he
would prefer a storage agreement with very definite time
and activity limits. Dunham suggested that the city have
different rates for summer and winter to discourage
upland storage of boats during the summer months.
singleton stated that he had suggested such a rate
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PAGE 131
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
structure some five or six years ago, but Council had not
been willing to approve it at that time.
Simutis stated that she was happy to see that
the administration now supports leaving the travel lift
in the Small Boat Harbor. She suggested that the city
consider conducting a Boat Harbor meeting annually to
address the concerns of all harbor patrons. Simutis also
suggested that the parking lot located between The
Landing and Ray's Waterfront Restaurant be reclassified
as a 4-hour parking lot to allow more turn over parking.
She suggested that tour boat businesses could have their
customers park in an alternative location. Diener noted
that this would only work if the city provided a reason-
ably good place for the tour people to park.
Simutis also noted that the lack of access to
the backs of their properties forced some Harbor business
owners to park in revenue-producing parking spots on the
street rather than behind their stores. Meehan suggested
that the lessees work together to solve that problem.
simutis asked about the viability of a bulkhead
dock on the North Shore. singleton stated that he had
investigated this possibility several times. He noted
that the sloughing problem could be prevented, but a
sheetpile dock in this area would cost in the neighbor-
hood of $4-5 Million because of the amount of dredging
which would be required. He stated that even if the
money was there, this project would not be viable because
of the up-front investment which would be needed.
Singleton noted that peratrovich, Nottingham
and Drage had stated in an earlier report that dredging
at the SFI dock would destroy the dock. He stated that
the city had identified a 10-foot extension of this dock
as one of its priority projects.
0' Brien stated that he could not understand the
urgency of this request and was reluctant to "rush into"
this action. He suggested that a citizens committee be
formed to look at what the administration wants to
accomplish. He also suggested that this be reviewed by
the Planning commission before the Council was asked to
take any action. O'Brien asked Singleton to prepare a
storage agreement which would include a damage deposit.
Finally, O'Brien stated that he could not support the
purchase of the 250-ton lift unless the administration
could show that it could produce a revenue stream
sufficient to pay for itself.
, ~(J.
;-1.
" l't:
PAGE l32
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
Diener stated that if the Council wished to see
the parking lots paved this season, a decision would have
to be made soon. He stated that, if approved at this
time, paving could not be accomplished until July or
August.
Dunham objected to being asked to approve
something of this magnitude on such short notice.
Schaefermeyer reminded the Council that he had approached
the state before Christmas asking for authorization to
divert these bond funds to other projects. In addition,
the Council had approved the Harbor Master Plan, the
Uplands Management Plan and the Harbor Parking Plan, each
of which envisioned paving the lots in question. He
added that each of these plans had been the subject of
several public hearings prior to Council approval.
Meehan concurred. He stated that singleton had
done an admiraJ. job in putting together this plan, having
looked at the needs of the public and adjusted his
original recommendations accordingly. He noted that the
proposed paving was not a new idea and he could not
imagine that the Planning Commission would have a problem
with the proposed projects as presented. Meehan stated
that he would support the paving projects so long as the
50-ton lift was to stay in the Small Boat Harbor. He
suggested, however, that the city get more public input
before investing in a new 250-ton lift.
0' Brien noted that the city would be asking the
voters to bond for some paving projects next season and
suggested that this paving be accomplished at that time.
He added that he would not object to seeing the paving
done this year, but he could not see the urgency.
Gieseler stated that he would accept public
input from Anchorage residents at hearings such as the
one earlier in the meeting; however, any decisions made
be the Council would be based on the wishes of Seward
residents. He also noted that no one had spoken in
opposition to paving the parking lots, and he urged the
Council to support this plan. He stated that the
administration's proposed proj ects would improve the
Small Boat Harbor and the community.
SIMUTIS MOVED TO PROCEED WITH THE HARBOR
IMPROVEMENTS AS RECOMMENDED BY THE ADMINISTRATION; THE
MOTION WAS SECONDED BY MEEHAN AND FAILED WITH GIESELER,
MEEHAN AND SIMUTIS VOTING "YES" AND DUNHAM AND O'BRIEN
VOTING "NO".
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PAGE 133
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
DUNHAM MOVED TO RECONSIDER THE PREVIOUS MOTION
AT THE NEXT REGULAR COUNCIL MEETING; THE MOTION WAS
SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
Singleton stated that he had proposed purchase
of the 250-ton lift to complement the shiplift, not as
competition. He noted that he would only lift boats
destined for storage, not repair, and would, therefore,
be targeting a different market from Pruitt. Singleton
said that the city is currently overstressing the float
facility in the Small Boat Harbor and it is imperative
that the larger boats be removed from the SBH to some
other location for storage. Singleton noted that
security would be easier to provide at SMIC than in the
SBH since there was only one entrance to the facility.
In addition, the boat storage area he planned for SMIC
would be provided with security lighting.
O'Brien asked Singleton to provide the Council
with a market study showing potential and projected
income and total cost to the city to purchase the boat
lift and any other infrastructure needed for its opera-
tion.
VII.
CITY MANAGER REPORTS:
Singleton noted that the new fish cleaning rack
has been designed, but the exact location had not yet
been determined. Gieseler stated that the Council had
previously approved construction of the fish cleaning
rack, and he instructed the administration to proceed
with the construction.
Singleton also noted that he had received a
sketch of the proposed waste oil containment facility.
He stated that he would like to purchase a 500-gallon
vacuum tank to transport waste oil from one point to
another. Schaefermeyer noted that the oil containment
system was a part of the capital plan approved by the
Council on June 12. He stated that the price tag on the
tank was approximately $7,000. He added that he would
come back to the Council on June 26 with the particulars.
VIII.
COUNCIL DISCUSSION:
DUNHAM stated that the bulkhead across the Bay
had been damaged. Singleton stated that he would look
into this and report back to the Council.
IX.
CITIZENS' COMMENTS:
184
PAGE 134
SPECIAL MEETING - JUNE 15, 1989
VOLUME 24
JIM PRUITT, Maple street, restated his asser-
tion that the proposed 250-ton lift would be in direct
competition with his activities at SMIC.
X.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
XI.
ADJOURNMENT:
The meeting was adjourned at 9:12 p.m.
~ e.~,~~J.,
I'farry . Gieseler
Mayor
PAGE 134 REGULAR MEETING - JUNE 26, 1989
VOLUME 24
The June 26, 1989, regular meeting of the Seward City
Council was cancelled for lack of a quorum.
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PAGE 135
SPECIAL MEETING - JULY 10, 1989
VOLUME 24
I.
CALL TO ORDER:
The July 10, 1989,
Seward City Council was called
Mayor Harry E. Gieseler.
special meeting of the
to order at 6:10 p.m. by
II .
OPENING CEREMONY:
Waived
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmern-
bers Dunham, Hilton and Simutis
(Meehan, Noll and O'Brien were
excused)
Present also: City Manager Schaeferrneyer and
City Clerk Murphy
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
HILTON MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM
AND CARRIED UNANIMOUSLY.
V.
SPECIAL ITEM:
HILTON MOVED TO MEET IN EXECUTIVE SESSION
IMMEDIATELY FOLLOWING THE CLOSE OF THE MEETING TO DISCUSS
PERSONNEL MATTERS; THE MOTION WAS SECONDED BY SIMUTIS AND
CARRIED UNANIMOUSLY.
VI.
COUNCIL DISCUSSION: None
VII.
CITIZENS' DISCUSSION: None
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS : None
IX.
ADJOURNMENT:
The Council adjourned into Executive Session
at 6:12 p.m. in order to discuss personnel matters.
~~~~
Harr . G1eseler
Mayor
. .
"'~; ,\ 5
.~.. ,1_1<1' t...~
"-' .<' "... ."
-.-
'" "'('
J "'j ,
PRESENTATIONS:
PRESENTATIONS:
PAGE 136
REGULAR MEETING - JULY 10, 1989
VOLUME 24
I.
CALL TO ORDER:
The July 10, 1989,
Seward City Council was called
Mayor Harry E. Gieseler.
regular meeting of the
to order at 7:30 p.m. by
II.
OPENING CEREMONY:
Councilmember O'Brien led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
O'Brien and Simutis (Noll was
excused)
Present also: city Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager/P&R Director Yanez,
Port Marketing Director Gates,
Manager of Engineering and
utilities Diener, utility
Engineer Anderson, Building
Inspector Ferguson, Harbormaster
Singleton, Fire Chief Gage,
Police Chief Bencardino, Finance
Director Gifford, Administrative
Assistant Martin, Hospital
Administrator Campbell and City
Clerk Murphy
SPECIAL ITEM:
A. Gieseler introduced Margaret Deck,
recently retired City Librarian, and presented her with
a plaque, a resolution in her honor and a copy of the
limited edition print "Shores of Seward" by Dot Bardar-
son. He thanked Ms. Deck for her 27 years of service to
the community.
B. Gieseler introduced Senator szymanski.
The Senator made a short presentation concerning the oil
spill clean up effort and stated that he was pleased to
see the economic diversity which had been established in
Seward. He also complimented Deck on her long term
service to the community.
IV.
APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE JUNE 12 AND JUNE
15, 1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY
DUNHAM AND CARRIED UNANIMOUSLY. (Hilton noted a misspel-
ling on Page 132.)
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REGULAR MEETING - JULY 10, 1989
VOLUME 24
V.
APPROVAL OF REGULAR MEETING AGENDA:
proposed
XI (C) (7) ,
Proposal.
Schaefermeyer requested the addition of
Resolution No. 89-084 as Agenda Item No.
and New Business Item No. "D", Grain Terminal
HILTON MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Sewall was not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
O'Brien requested that Consent Calendar Item
No. 9 be moved to the Regular Meeting Agenda as the
eighth item under "Resolutions". Murphy noted that Item
No. 7 (Proposed Resolution No. 89-080) should refer to
approval of the entire Mutual Aid Agreement, not just the
Operations Plan.
12.7
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-069, commending Margaret PERSONNEL/RESO:
"Jackie" Deck for twenty-seven years of community service
upon her retirement from the Seward community Library,
was approved;
2.
appointment of
approved;
Resolution No. 89-070, confirming the
Patricia Jones as Deputy City clerk, was
3. Resolution No. 89-071, confirming the
appointment of Darryl Schaefermeyer as city Manager, was
approved; '<^~~.
CITY CLERK/RESO:
(Confirming D.Clk.
Apptrnt)
CITY MANAGER:
(Apptg. D.Schae-
ferrneyer as CM)
4. Resolution No. 89-073, accepting a SENIOR/COMMUNITY
proposal for a marquee sign and external detail for the CNTR/RESO:
senior/Communi ty Center and Museum as appropriate for Art
in Public Places and awarding a contract for design and
construction to Theda J. Cagle, was approved;
13?
PAGE 138
REGULAR MEETING - JULY 10, 1989
VOLUME 24
PUBLIC RECORDS/RESO: 5. Resolution No. 89-074, authorizing the
destruction of certain public records, was approved;
FINANCE DEPT (Bank
Account)/RESO:
FIRE DEPT (Mutual
Aid Aqrrnt)/RESO:
6. Resolution No. 89-079, establishing a city
payroll account and authorizing signatures for all city
bank accounts, was approved;
7. Resolution.No. 89-080, approving the FY
1990 Mutual Aid Agreement between the city and the Bear
Creek Fire Service Area, was approved;
ALASKA HIGHWAY/RESO: 8. Resolution No. 89-081, supporting the
.
1ssuance of a postage stamp commemorating the 50th
anniversary of the Alaska Highway, was approved;
CITY ATTY:
Electric
services
approved
9. Moved to Regular Meeting Agenda;
10. June 5, 1989, invoice from Golden Valley
Association, Inc., for Seward's share of legal
during April 1989, totalling $85.72, was
for payment;
CLAIM FOR DAMAGES: 11. Claim for damages as filed by Michael
(M.Glaser Claim Glaser for loss of frozen food due to a loss of residen-
APPROVED) tial electrical service, such claim totalling $700.00,
was approved for payment;
CON- 30 I
FINANCE DEPT:
(Confirming
Apptrnt. of R.
Gifford as
Finance Dir.)
PUBLIC HEARINGS:
(CAC Cogenera-
tion Agrrnt)
12. Change Order No. 3 to Werner's Agreement
to provide a Senior/Community Center, extending the
completion date to June 12, 1989, and reducing the total
contract amount by $4,417.00, was approved;
13. July 3, 1989, memorandum from city Manager
Schaefermeyer recommending that Council confirm the
appointment of Rick Gifford as Director of Finance and
Administrative Services as approved;
14. June 20, 1989, memorandum from Engineering
& utilities Manager Diener regarding a proposed CEA rate
increase which would increase the cost paid for wholesale
power by the city was noted for information; and
15. Application for permit for Games of Chance
and Skill as filed by Seward Elks Lodge #1773 was noted
for information.
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law regarding a proposed
COGENERATION AGREEMENT between the city and Chugach
Alaska corporation was noted and the public hearing was
opened; no one appeared in order to be heard and the
public hearing was closed.
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PAGE 139
REGULAR MEETING - JULY 10, 1989
VOLUME 24
X.
PRESENTATIONS WITH PRIOR NOTICE:
A. WILLARD E. DUNHAM, Chairman of the Seward
Trade and Commerce Advisory Board, presented the Board's
annual report to the Council. O'Brien complimented the
Board on the work it had done regarding promotion of IMS
expansion and encouraged its members to continue to
pursue this.
B. DR. RICHARD ALAPACK, Clinical director of
Seward Life Action Council (SLAC), stated that SLAC had
received just under $20,000 in funding from SOADA to
provide services to public inebriates. He briefly
outlined his plan for working with all agencies involved
including local police, hospital and medical staff, to
best utilize the funds available.
C. MIKE WILLIAMS, representing Alyeska
Pipeline service Company, reviewed the interim operating
plan and the proposed long term oil spill prevention and
response plan for Prince william Sound. He stated that
a citizens advisory group comprised of representatives
from the major towns in the area, Chugach Natives, area
fish hatcheries, fisheries groups, etc., would be
appointed to review the long range plans and to review
the status of both preventive and response plans on an
annual basis.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
B. Ordinances for Public Hearing & Enactment:
C. Resolutions:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A COGENERATION AGREEMENT WITH
CHUGACH ALASKA CORPORATION.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
072; THE MOTION WAS SECONDED BY SIMUTIS AND APPROVED BY
UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
VCJ()
',. ,.
CIT.DISC: (W.Dun-
ham/Trade Board
Annual Report)
CIT. DISC: (R.
Alapack/SLAC)
CIT. DISC: (M.
Williarns/Alyeska
Pipeline)
SMIC/RESO: (Co-
generation Agrrnt/
CAC)
140
GRANTS/SBH/RESO:
(Auth. SBH Imp.)
SBH/RESO/CON-31/:
(Land Survey
On-Call Cont.)
GRANTS/SMIC/RESO:
(Auth. SMIC
Improvements)
PAGE 140
REGULAR MEETING - JULY 10, 1989
VOLUME 24
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING CERTAIN SMALL BOAT HARBOR IM-
PROVEMENTS.
Murphy noted that a motion for approval of the
resolution was on the floor.
THE QUESTION WAS CALLED AND RESOLUTION NO. 89-
075 WAS APPROVED UNANIMOUSLY.
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AWARDING
A CONTRACT FOR ON-CALL PROFESSIONAL
LAND SURVEY SERVICES.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
076; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
4. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING CERTAIN SEWARD MARINE INDUS-
TRIAL CENTER IMPROVEMENTS.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
077; THE MOTION WAS SECONDED BY HILTON.
0' Brien thanked Singleton for the report on
projected revenues from the proposed purchase of a 250-
ton travel lift for SMIC which he had provided in Coun-
cil packets. He asked if the revenue would cover the 0
& M costs associated with operation of the lift and
storage facility. Foster replied that he had estimated
revenues conservatively and was convinced that revenues
would easily cover the expense of retiring debt service
in addition to 0 & M costs. Dunham stated that she
believed singleton was overly optimistic in his assess-
ment of the available market. Meehan disagreed, stating
that there was much more business for an uplands storage
facility for large vessels than Singleton had indicated.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FOUR "YES" VOTES AND DUNHAM AND 0' BRIEN
VOTING "NO".
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REGULAR MEETING - JULY 10, 1989
VOLUME 24
RECESS:
The meeting was recessed at 8: 55 p. m. and
reconvened at 9:03 p.m.
5. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE CONSTRUCTION OF THE FOURTH
AVENUE EXTENSION TO BE PAID FOR BY
THE LOCAL SERVICE ROADS AND TRAILS
FUND.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
078; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMOUSLY.
6. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF EQUIPMENT TO
REPAIR SEWER LIFT STATION NO. 3 AND
APPROPRIATING FUNDS.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
082; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
7. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
THE PRISON CONSTRUCTION BUDGET AND
AWARDING A CONTRACT FOR CONSTRUCTION
OF THE SCCC CRAFTS AND PRISON INDUS-
TRIES ADDITIONS.
Arvidson noted that Council had been provided
with a substitute resolution which contained several
changes in the "whereas" clauses and a new "Section 3".
He noted that the changes reflected the fact that all
bids received exceeded the amount of monies available
within the budget for the project, and that Department
of Corrections had agreed to contribute $360,000 so that
the basic bid could be awarded. In addition, Section 3
authorized extension of the project services agreement
with DOT and the TORA.
141
STREETS/GRANTS/
RESO: (LSR&T
funding for
paving 4th Ave
extension)
PURCHASING/RESO:
(Equiprnt. for
repair of Sew.
Lift Stat. #3)
PRISON/RESO:
(Prison Ind.
Addi tion-Av/ard
of Contract)
1/t~
. ,L,
PAGE 142
REGULAR MEETING - JULY 10, 1989
VOLUME 24
HILTON MOVED TO APPROVE RESOLUTION NO. 89-084
(SUBSTITUTE); THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
SMIC/RESO/CON-.341: 8. Copies having been made available to
(Aerial Map- the public, Gieseler noted by title only a proposed
ping Cont.) resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AWARDING
CONTRACTS TO COMPLETE AERIAL MAPPING
OF THE SEWARD MARINE INDUSTRIAL
CENTER.
0' BRIEN MOVED TO APPROVE RESOLUTION NO. 89-
083; HILTON SECONDED THE MOTION.
O'BRIEN MOVED TO AMEND THE RESOLUTION BY
SUBSTITUTING "$3,500.00" FOR "$4,000"; THE MOTION WAS
SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
RESOLUTION NO. 89-083 WAS APPROVED BY UNANIMOUS VOTE OF
THE COUNCIL.
XII. UNFINISHED BUSINESS:
COMMUNITY HOSPITAL A. GIESELER APPOINTED JAN BAIRD TO FILL THE
BOARD: (Jan VACANT SEAT ON THE COMMUNITY HOSPITAL BOARD THROUGH
Baird Apptd.) OCTOBER 1989. THERE WAS NO OBJECTION FROM THE COUNCIL.
XIII.
NEW BUSINESS:
TRADE BOARD: (Cont. A. HILTON MOVED TO CONTINUE THE TRADE BOARD
through FY90) THROUGH FISCAL YEAR 1990; THE MOTION WAS SECONDED BY
O'BRIEN AND CARRIED UNANIMOUSLY.
SMIC/LEASE PROP:
(City to pro-
ceed w/lease
negot. w/SSC
upon cornplet.
of certain
conditions)
B. Seward Ships Chandlery Lease Proposal.
Gates noted that he was requesting Council concurrence
that Seward Ships Chandlery (SSC) be required to carry
out the following three items before the city entered
negotiations for the requested lease to construct and
operate a waste oil treatment and disposal system:
1. SSC must provide the city with a state-
ment of responsibility and evidence of insurance, or
escrow sufficient monies, to promptly pay the cost of
repairing damage to the city's Syncrolift shiplift
associated with the event of April 5, 1989;
2. SSC must remove all personal property to
within the confines of its lease area; and
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REGULAR MEETING - JULY 10, 1989
VOLUME 24
3. SSC must provide an updated schedule of
transfer cradle completion and bi-weekly written reports
to the Seward city council on cradle construction pro-
gress.
SIMUTIS MOVED TO AUTHORIZE THE ADMINISTRATION
TO PROCEED WITH LEASE NEGOTIATIONS WITH SEWARD SHIPS
CHANDLERY PROVIDED THAT THE THREE CONDITIONS OUTLINED BY
THE ADMINISTRATION ARE MET; THE MOTION WAS SECONDED BY
DUNHAM AND CARRIED UNANIMOUSLY.
C. Lease proposal submitted bv Robert
H. Ferquson. Gates stated that Ferguson had submitted
a proposal to lease a .82 acre parcel located in the
Seward Marine Industrial Center to provide fishery, ship
repair and industrial support improvements to include a
dormitory, convenience store and snack bar/cafeteria.
Gates noted that one advantage to allowing this use in
SMIC would be better security for the area since staff
and occupants of the dormitory would be on site 24 hours
per day. Schaefermeyer stated that the Planning commis-
sion would be asked to review the proposed use before it
came back to Council for approval. He noted that the
Zoning Ordinance allows certain types of housing in the
Industrial Zone by Conditional Use Permit.
In response to a question from o'Brien, Fer-
guson stated that initially he planned to provide a
sandwich/snack bar. However, in the future he hoped to
make space available within the facility for another
operator to set up a restaurant. Dunham stated that she
was happy to see a Seward resident making such a pro-
posal. She added that the local business community
should be encouraged to get involved with planning the
direction SMIC is to take.
HILTON MOVED TO INSTRUCT THE CITY ADMINISTRA-
TION TO PROCEED WITH LEASE NEGOTIATIONS WITH FERGUSON AS
REQUESTED; THE MOTION WAS SECONDED BY SIMUTIS AND CAR-
RIED UNANIMOUSLY.
D. Grain terminal proDosal. Meehan asked if
he should abstain from voting on this issue. He noted
that Kobuk Feed, the city's co-proposer on the project,
was one of his customers. Arvidson suggested that Meehan
declare a conflict and abstain at this point. GIESELER
RULED THAT A CONFLICT OF INTEREST DID EXIST, BARRING
MEEHAN FROM DISCUSSION OF OR VOTING ON THE GRAIN TERMINAL
PROPOSAL.
Gates noted that the city had submitted a
proposal for the purchase of the grain terminal com-
ponents from the state contingent upon council passing
an authorizing resolution if the city's bid/proposal was
successful. Schaefermeyer stated that the state had
111~
SMIC/LEASE PROP:
(City to pro-
ceed w/lease
negot. w/Fer-
guson)
GRAIN TERMINAL:
(City to pro-
ceed w/effort
to purchase
grain terminal
components)
144
PAGE 144
REGULAR MEETING - JULY 10, 1989
VOLUME 24
requested reaffirmation of the city's continuing inter-
est as evaluation of proposals began.
Gates explained that the city had acted quick-
ly in submitting its proposal once it learned that no one
had come forward to inspect the grain terminal com-
ponents at the advertised public inspections on June 7
and June 21, making it clear that there was little, if
any, real interest in purchasing the components. Gates
noted that he had contacted Meehan to ascertain if Icicle
Seafoods might be interested in joint venturing with the
city to purchase the components for storage of fish meal;
however, Meehan had indicated that IciCle could not move
quickly enough to put a proposal together in the time
available. Meehan suggested that Gates contact one of
his customers, Kobuk Feed of Fairbanks. Ken Ulz,
president and owner of Kobuk Feed, stated that he had
considerable interest in such a joint venture, and agreed
to enter into a relationship with the city regarding the
bid and use of the grain terminal.
Gates stated that cost of storing the grain
terminal components was estimated to be approximately
$30,000 per year. Kobuk had agreed to bear 2/3 the costs
of storage and all out-of-pocket expenses associated with
the grain terminal. Any salvage or operating profits
received from the operation or sale of the grain terminal
would be split equally by the city and Kobuk. In
addition, Kobuk had agreed to provide a $10,000 "pot
sweetener" to the state to show bid integrity.
Gates noted that, even if no use could be found
for the grain terminal, the city's investment over three
years would be approximately $30,000 (one-third of
storage costs). If, at the end of the three years, Kobuk
and the city decided to sell the components for their
scrap value, the city would more than recover its
investment.
In response to a question from o'Brien, Gates
stated that the city would have a signed agreement with
Kobuk before any agreement for purchase was made with
the state.
O'BRIEN MOVED TO INSTRUCT THE ADMINISTRATION
TO PROCEED WITH THE BID PROPOSAL TO PURCHASE THE GRAIN
TERMINAL; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
WITH FIVE "YES" VOTES AND MEEHAN ABSTAINING.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER thanked the Council for its vote
of confidence and for allowing him to serve as city
manager. He noted that he had appointed Mike Yanez to
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REGULAR MEETING - JULY 10, 1989
VOLUME 24
be his assistant city manager. Schaefermeyer also noted
that the city had received a $25,000 cash advance from
Exxon earlier in the day to cover city's expenses in-
curred as a result of the oil spill. Finally, Schaefer-
meyer stated that the warm weather had brought out a
large contingent of swimmers at First Lake. In addition
to the danger presented by unattended children swimming
in the lake, there was an on-going problem of vandalism.
He noted that picnic tables were being dragged into the
lake for use as rafts and diving platforms. Schaefer-
meyer stated that he was considering posting the lake as
off limits to swimmers.
GATES reported that the Request for Qualifica-
tions and Interest for construction of Navy Homeporting
infrastructure had been drafted and was scheduled to be
mailed out the following week. He stated that 400
questionnaires had been distributed to the crews and
officers of the USS Willamette and the USS California
before the ships left the port of Seward asking the
respondents to rate Seward as a potential home port.
xv.
COUNCIL DISCUSSION:
O'BRIEN stated that he was opposed to banning
swimming at First Lake, and asked the administration to
bring this to Council for a vote before taking any such
action. He also asked the administration to investigate
lowering the speed limit in Dairy Hill to 15 MPH. He
noted that dust is a real problem, creating poor visibi-
lity and a danger to children playing and walking along
the roadway. Schaefermeyer stated that he would look
into this. O'Brien also reported that the Sagafjord had
apparently dumped hundreds of boxes into the water
alongside the vessel. He reported the incident to the
Coast Guard; however, the Coast Guard did not respond.
He asked that a letter be sent to the Cruise Ship com-
pany and the USCG concerning this incident.
GIESELER noted that he had complained not too
long ago about Foodmart's litter problems. He stated
that Foodmart personnel were getting lax once again, and
he asked the administration to approach them once more
about keeping their trash confined to covered dumpsters.
Gieseler also congratulated the Chamber of Commerce on
this year's Fourth of July celebration. He asked the
Clerk to prepare a letter for his signature to both KIMO
and KTUU thanking them for their coverage of the In-
dependence Day celebration and the Mt. Marathon Race.
He also asked the Clerk to acquire copies of both pre-
sentations for the city's library. Gieseler stated that
the two Navy captains had indicated that Seward had a
great reputation with the U. S. Navy. Finally, Gieseler
reminded everyone that the last 15 days of good weather
had increased area fire danger.
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REGULAR MEETING - JULY 10, 1989
VOLUME 24
XVI. CITIZENS' DISCUSSION:
JAMES T. PRUITT, Forest Acres, commented on
the memorandum from Gates to the Council concerning SSC' s
proposal to lease additional property at SMIC. He stated
that he had been diligently attempting to get the cradles
on site and operable by the deadline in his lease;
however, events beyond his control had made that impos-
sible. He stated that the wheels needed for the cradles
could only be supplied by one source, and the supplier
had been unable to meet the time frame originally
established for delivery and installation. He stated
that the noted damage to the shiplift could have been
avoided had he been able to operate the shiplift himself
rather than wait for someone from the Harbormaster' s
Office to arrive to "push the button". Pruitt stated
that the insurance problems occurred because he was
required to insure something owned and operated by the
ci ty. He also indicated that communication problems
between the city and SSC were responsible for some of
the inspection scheduling problems.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
GIESELER stated that Pruitt should have come
forward to speak under Agenda Item VII so that his
comments could have been heard before Council acted on
his request for lease negotiations.
XVIII.
ADJOURNMENT:
The meeting was adjourned at 10:07 p.m.
~ c ..l,,,,.~.
~a E. Gieseler
Mayor
o
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
I.
CALL TO ORDER:
The July 24, 1989,
Seward City council was called
Mayor Harry E. Gieseler.
regular meeting of the
to order at 7:32 p.m. by
II.
OPENING CEREMONY:
councilmember Dunham led the pledge of alle-
giance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Noll,
0' Brien and Simutis (Meehan was
excused. )
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager Yanez, Engineering
& utilities Manager Diener,
Administrative Assistant Martin,
Harbormaster Singleton, Building
Inspector Ferguson, Hospital
Administrator Campbell, Police
Chief Bencardino, Port Marketing
Director Gates, Fire Chief Gage,
Librarian Nicolas, and City
Clerk Murphy
SPECIAL ITEM:
Seward International Friendship Association
(SIFA) President Jonathan Sewall introduced Michael
Lynch, Janet Huss, Tiffany Gage and Krystal Murphy, the
four students chosen to represent Seward in the 1989
student exchange program with Obihiro, Japan. Lynch,
speaking for the four students, thanked SIFA and the city
for making the program possible. Sewall also introduced
the four students from Obihiro: Hisashi Kanno, Isamu
Inoue, Masae Suga and Ayame Sasaki. Each made a short
presentation to the Council. Mayor Gieseler's welcoming
remarks were translated for the students by Rhonda
Anderson-Hubbard.
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE JULY 10, 1989,
SPECIAL AND REGULAR MEETING MINUTES AS WRITTEN; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
'17
SIFA/STUDENT EX.
PROGRAM:
,4R
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall gave a verbal report of the July 18,
1989, meeting of the Assembly. He also reported that
the Railbelt borough mayors had met on June 24.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
DEL DUBY, 2519 Dimond, declined to speak.
CIT.DISC: (Opposing KEN GOODWIN, 2519 Dimond, spoke in opposition
Ord. 619) to the introduction of Ordinance No. 619, which would
require establishments selling alcoholic beverages to
close at 2: 00 a. m. Goodwin stated that this would
present a danger to "people on the streets" who might
freeze to death if the bars closed before 5:00 a.m.
CIT.DISC: (In
port of Ord
619)
CIT.DISC: (250-
ton lift)
KEITH CAMPBELL declined to speak.
Sup- AL LAMBERSON, Mile 6.3, Seward Highway,
speaking as Chairman of the Community Hospital Board and
as a member of the AVTEC administration, urged the
Council to introduce Ordinance No. 619. He stated that
protective custody cases had cost the hospital in excess
of $32,000 last year. In addition, AVTEC's dormitory
incident statistics showed that the majority of student
problems occurred between the hours of Midnight and 6:00
a.m., and most of these problems were alcohol-related.
He said that closing the bars at 2:00 a.m. would probably
reduce AVTEC's problems.
JIM PRUITT, Forest Acres, stated that Council
did not have all of the facts before acting on the 250
ton lift for SMIC. He asked that the Council reconsider
its action of the last meeting.
VIII.
APPROVAL OF CONSENT CALENDAR:
Schaefermeyer requested that Item No. 3
(Proposed Resolution No. 89-087, approving a 3D-day
sublease extension between Pruitt and Veco) be deleted.
He also requested the addition of a new Item No. 10 -
Dawson contract extension. Hilton asked if the adminis-
tration had attempted to renegotiate the price of the
lobbying contract for this fiscal year and suggested that
this be done before Council was asked to approve the
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
contract extension. 0' Brien suggested that the contract
extension be placed under "New Business" as Item No. liD".
He also asked that Item No. 2 be moved to "Resolutions"
and Item No. 9 be moved to "Unfinished Business" for
discussion.
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. The following actions were taken:
grant for
approved;
1. Resolution No. 89-085, accepting a state
the purchase of hospital equipment, was
GRANTS/SGH/RESO:
2. Moved to Regular Meeting Agenda;
3. Deleted;
4. July 7, 1989, invoice from Wohlforth, CITY ATTY:
Argetsinger, Johnson & Brecht for legal services total-
ling $1,738.22, was approved for payment;
5. July 15, 1989, schedule of city invest-
ments, as prepared by Finance Director Gifford, was noted
for information;
6. July 18, 1989, memorandum from Diener
concerning litter problems created by Foodmart was noted
for information;
7. Application for permit for games of chance GAMES OF CHANCE
and skill as filed by SEWARD EMBLEM CLUB #250 was noted & SKILL PERMIT:
for information;
8. July 20, 1989, memorandum from Yanez
concerning Dairy Hill speed limits was noted for informa-
tion; and
9. Moved to Regular Meeting Agenda.
IX.
PUBLIC HEARINGS:
None
X.
PRESENTATIONS WITH PRIOR NOTICE:
None
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ENACTING
MISCELLANEOUS REVISIONS TO THE SEW-
ARD CITY CODE, TITLE 4, ELECTIONS.
O'BRIEN MOVED TO INTRODUCE PROPOSED ORDINANCE
NO. 618; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. Public hearing was scheduled for August
14, 1989.
2. copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REGULAT-
ING HOURS OF OPERATIONS OF ESTAB-
LISHMENTS THAT SELL ALCOHOLIC BEVER-
AGES.
NOLL MOVED TO INTRODUCE PROPOSED ORDINANCE NO.
619; THE MOTION WAS SECONDED BY HILTON.
simutis stated that she owned a liquor license
and would, therefore, abstain from discussing or voting
on this ordinance. Gieseler ruled that a conflict did
exist.
Noll urged the Council to vote for introduc-
tion of the proposed ordinance so that the public would
have the chance to comment at public hearing. He stated
that he had received statistics from SLAC which indi-
cated that alcohol abuse in Alaska currently costs the
state $13.00 for every dollar the state receives from
alcohol fees and taxes. Noll stated that this ordinance
would not cure the problem, but it would help.
THE QUESTION WAS CALLED AND THE MOTION FOR
INTRODUCTION OF THE ORDINANCE CARRIED WITH FIVE "YES"
VOTES AND SIMUTIS ABSTAINING.
B. Ordinances for Public Hearing/Enactment:
None
C. Resolutions:
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
15'.
1. Copies having been made available to OIL SPILL/RESO:
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, URGING
EXXON TO CONTINUE CLEANUP OPERATIONS
AS LONG AS WEATHER PERMITS.
O'Brien stated that he had asked that this be
placed on the Regular Meeting Agenda so that he could
declare his conflict of interest as an employee of Veco,
one of Exxon's subcontractors for oil spill cleanup.
Gieseler ruled that a conflict of interest did exist.
Gieseler stated that he planned to present
this resolution to the Alaska Conference of Mayors and
asked for concurrence from other affected communities.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FIVE "YES" VOTES AND O'BRIEN ABSTAINING.
XII. UNFINISHED BUSINESS:
A. Status report from Yanez concerninq
litterinq of the Bav bv the Saqafiord. o'Brien compli-
mented Yanez on his letter to Cunard concerning the
littering incident he (O'Brien) had related at the last
meeting. However, he objected to Yanez's statement in
his status report indicating that the source of the
litter reported by O'Brien was uncertain. O'Brien
stated that he had retrieved boxes from the water which
bore labels addressed to theSagafjord. One of these
boxes had been delivered to the U.S.C.G. when the ini-
tial complaint was filed; another was displayed at the
meeting by O'Brien.
XIII.
NEW BUSINESS:
A. Gillespie claim for damaqes. SIMUTIS
MOVED TO APPROVE THE CLAIM IN THE AMOUNT OF $1500 AS
FILED BY ATTORNEYS FOR JOHN GILLESPIE; THE MOTION WAS
SECONDED BY DUNHAM.
Schaefermeyer briefly outlined the history of
events leading to Gillespie's claim. He stated that the
city had received a complaint from a neighbor that
children were playing on a piece of equipment located on
a lot belonging to Donald Snellman. The neighbor ex-
pressed some concern that a child might be injured. The
city contacted Snellman and asked that the equipment be
secured or moved. Snellman's secretary relayed a mes-
sage to the city from Snellman that he (Snellman) had
CI,AIM FOR DAM-
AGES: (Gilles-
pie Claim
DENIED)
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PAGE 152
REGULAR MEETING - JULY 24, 1989
VOLUME 24
not been aware that the equipment was located on his
property and that he did not know who owned it. He asked
the city to remove it from his property, and the city did
so. Approximately one year later, Gillespie came forward
to claim the grizzly. He asked that the city return the
grizzly to him along with payment in the amount of $2500.
This request was later amended to reflect the settlement
proposal currently before the Council (return of the
grizzly and payment of $1500).
Schaefermeyer stated that he felt the city had
acted responsibly. He stated that the city's abatement
procedures did not apply to this incident since the city
was acting on a request from the property owner to remove
the equipment from his property. He stated that had the
city been aware that Mr. Gillespie owned the equipment,
Gillespie would have been contacted and formal abatement
procedures would have been initiated; however, this had
not been the case. Schaefermeyer further noted that the
City Code allows the city to summarily abate any Object
considered to be a danger to the public.
0' Brien stated that the equipment did not
present an imminent danger to the public, adding that
the city probably should have followed formal abatement
procedures. Hilton disagreed, stating that the city was
responding to a concern of a citizen who was afraid that
children might be injured. He stated that, in his
opinion, the city acted appropriately. He also ques-
tioned the $1500 in damages sought by Gillespie, stating
that, if the city returned the grizzly to Gillespie and
reassembled it, a compensable claim would not exist.
THE QUESTION WAS CALLED AND THE MOTION FAILED
WITH FOUR II NO II VOTES AND 0' BRIEN AND SIMUTIS VOTING
"YES".
CITY ATTY: (Waiver B. Waiver of Conflict - Perkins Coie. NOLL
of Conflict MOVED TO APPROVE THE REQUEST FROM PERKINS COIE AUTHORIZ-
Approved for ING THE CITY MANAGER TO EXECUTE A "WAIVER OF CONFLICT"
Perkins Coie REGARDING PC'S REPRESENTATION OF ARCO AND BRITISH PETRO-
to represent LEUM ON MATTERS OTHER THAN THOSE RELATING TO THE OIL
BP & Arco) SPILL; THE MOTION WAS SECONDED BY SIMUTIS.
O'Brien asked if PC had brought its billings
up to date as yet. Schaefermeyer responded that bill-
ings have been provided through May; however they would
not be presented to the Council until he and Murphy had
resol ved some questions they had concerning several items
on the invoices. Noll concurred with O'Brien that the
billings must be presented to the city in a more timely
fashion. He also noted that he would vote to approve the
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
"waiver of conflict" on condition that the city not be
billed for preparation of the waiver document.
o'Brien asked Arvidson to explain his refer-
ence to PC's ability to represent the city "up to the
point of litigation." Arvidson stated that there was a
reasonable chance that if and when Seward decides to
pursue Exxon in court, the city would also pursue Aly-
eska Pipeline service Company. One of the owners of
Alyeska also owns a company represented by PC which would
create a conflict on the part of PC in this litigation.
Arvidson stated that probably every major law firm in the
state would be involved in this litigation in some way.
THE QUESTION WAS CALLED AND THE MOTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
RECESS:
The meeting recessed at 9:00 p.m. and recon-
vened at 9:10 p.m.
C. Seward Chamber of Commerce reauest to
neqotiate a lonq term lease of Lot 4. Ft. Ravmond Sub-
division. SIMUTIS MOVED TO INSTRUCT THE ADMINISTRATION
TO MOVE AHEAD WITH NEGOTIATION OF A LONG TERM LEASE TO
THE CHAMBER OF COMMERCE; THE MOTION WAS SECONDED BY
HILTON.
Dunham stated that she remained opposed to the
Chamber's decision to move the information cache and
offices. She stated that many people with relatives
buried in the cemetery located directly adjacent to the
proposed lease site objected to placing a visitors center
there. She added that the Chamber Board is not united
in its decision to move.
Gieseler asked if a Chamber representative was
present to speak on behalf of this request; no one
stepped forward to speak.
Hilton stated that the Chamber's request for
a lease should be treated as any other request. He added
that it was not up to the City Council to decide where
the Chamber should locate its offices or its visitors
center. He also noted that the Council should move
forward with the request so that it could be put to
public hearing.
simutis concurred, stating that the issue
before the Council was not the question of whether the
Chamber should move but whether the city wished to lease
this particular piece of property.
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PAGE 154
REGULAR MEETING - JULY 24, 1989
VOLUME 24
O'Brien asked if the administration intended
to negotiate a lease at fair market value. Schaefer-
meyer stated that the Chamber had requested a lease at
no rent or charge. He asked Council to give some direc-
tion to the administration on the question of lease rate.
Dunham objected to a 20-year free lease to the
Chamber. Hilton stated that he would not object to a
free lease for the first one or two years, but at some
point, the Chamber would have to pay fair market value
for the property.
Noll stated that he was not prepared to make
a decision until he had the answers to some questions:
Who covers moving costs? What will happen to the rail-
road car currently used as the Information Cache? Who
will pay utilities? What will happen to the site on
which the rail car is now located
Martin stated that the Chamber would bear the
cost of moving and utilities. The rail car would remain
at its current location, with the possibility that it
would be donated to the museum at some later date.
simutis stated that she favored offering the
Chamber a no cost lease. She noted that Chamber func-
tions dovetail with the interests of the city and it was
important that the Chamber and city work together.
In response to a question from Hilton, Martin
stated that the fair market lease value of the property
was approximately $0.35 - $0.40 per square foot. He
noted that a utility corridor was located in the center
of the site and, if this was excluded from the formula,
lease payments would total about $17,500 annually.
Hilton noted that the city had a history of
helping the Chamber; however, a commitment had been made
to move away from direct financial support. He stated
that he would object to forgiving the entire $17,000
annual lease amount but would consider forgiving $10,000
in rents each year.
Gieseler stated that the Chamber and the City
were really one entity in the minds of most people, and
the two must work together.
NOLL MOVED TO POSTPONE ACTION ON THIS PROPOSAL
UNTIL THE NEXT MEETING; THE MOTION WAS SECONDED BY HILTON
AND CARRIED WITH FIVE "YES" VOTES AND 0' BRIEN VOTING
"NO".
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PAGE 155
REGULAR MEETING - JULY 24, 1989
VOLUME 24
D. Dawson contract amendment. SIMUTIS MOVED
TO APPROVE THE DAWSON CONTRACT AMENDMENT FOR LEGISLATIVE
LOBBYING SERVICES; THE MOTION WAS SECONDED BY NOLL.
O'Brien stated that the city could no longer
afford this level of funding for a lobbyist and re-
quested that the administration attempt to negotiate a
lower fee. Hilton added that it appeared that the
administration had not made any effort to negotiate with
Dawson. He stated that he did not want to terminate the
agreement, but suggested that a reduction in fees be
addressed. Gieseler asked Noll to participate in the
negotiations with Schaefermeyer.
O'Brien stated that he wanted to see the
administration and Noll negotiate a much lower fee to be
brought back to the Council at the next meeting. Dunham
concurred, but added that, with much less money to be
had in Juneau, Dawson was more important to the city than
ever. She stated that he was needed to "put out brush
fires" and "protect what we have". Gieseler added that,
if the city lost Dawson's services, fifteen other
communities would be vying to hire him as a lobbyist.
He also noted that the city of Seward is the only munic-
ipality represented by Dawson, and the city must pay a
premium for that exclusive representation.
O'BRIEN MOVED TO POSTPONE ACTION ON THIS ISSUE
UNTIL THE NEXT MEETING; THE MOTION WAS SECONDED BY DUNHAM
AND CARRIED UNANIMOUSLY.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER introduced newly appointed
librarian Cathy Nicolas. He also noted that at the
August 14 meeting he would request Council authorization
to set for election in October the question of GO Bonds
to fund street and sidewalk repairs and street lighting.
GATES stated that the city had received a
notice of award for its proposal to purchase the grain
terminal. He stated that this was the last day for
unsuccessful bidders to file a protest of award, and
negotiations with the state would start on Tuesday.
Gates also noted that the Navy Homeport Request for
Qualifications and Interest had "hit the streets". He
stated that the purpose of the RFQ was to solicit inter-
est in the project from the private sector. Gates stated
that he had been elected chair of the advisory group for
oil spill oversight.
XV.
COUNCIL DISCUSSION:
I""h
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PAGE 156
REGULAR MEETING - JULY 24, 1989
VOLUME 24
0' BRIEN stated that the city might want to look
at the 250-ton lift question again.
DUNHAM concurred. She stated that she thought
the administration had agreed to leave the 50-ton lift
"as-is". Dunham also asked if the street vendors on
Fourth of JUly and during Salmon Derby were told of their
obligation to collect and pay sales tax, and, if so, who
monitored compliance? Martin stated that the vendors on
Adams Street operating under the Chamber's permit were
aware of the requirement. However, those vendors on
private property were probably not told of the sales tax
law.
HILTON asked if the city could require that
vendors post a bond which would be retained until sales
tax was paid. Arvidson stated that the city probably
could not do this since the borough has the authority
and responsibility for collecting the tax. Hilton also
stated that he was under the impression that the Council
had instructed the administration to down grade the 50-
ton lift to 30 tons to allow the harbor to replace the
steel cables. He added that most of the lifts in the
Small Boat Harbor were under 30 tons.
SIMUTIS stated that she, too, remembered
approving the down grade of the 50-ton lift. She stated
that those harbor business owners present at the time
had said that they were happy as long as the lift stayed
in the Small Boat Harbor. simutis also asked about the
city's efforts to abate public nuisances. She noted an
existing problem on Adams Street. Diener stated that
Metco, Inc., had promised to remove the building as soon
as its schedule permits. Simutis noted that the commit-
tee appointed to select the art for the SCCC was busy,
having received about 45 submissions containing detailed
proposals.
NOLL asked if continuing action on the Dawson
contract would affect his (Dawson's) payments from the
city. Murphy noted that, in the past, the lobbying
services contract has been amended in August, with
payments commencing after approval.
GIESELER noted that a Marine Highway System
hearing was scheduled for July 27, beginning at 7: 00
p.m.; he encouraged interested persons to attend.
Gieseler asked when the public telephones in city hall
were scheduled to be moved outside the building. Diener
stated that this should happen soon. Gieseler asked if
any progress had been made toward developing a licensing
system for businesses. Arvidson stated that the city
could require a city business license, but this would
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REGULAR MEETING - JULY 24, 1989
VOLUME 24
not generate substantial revenues. He added that there
was very little hope that the city could license cruise
ship operations as Gieseler had earlier hoped.
GIESELER noted that the city was currently
advertising two or three vacant positions and asked if
the city Code was being followed in recruitment and
hiring. He also asked that the administration hire
locally if possible. In response to a question from
Gieseler, Diener stated that the city had received
$25,000 thus far from the sale of gravel at Fourth of
July Creek. Singleton stated that the fish cleaning rack
would be constructed immediately following the Salmon
Derby.
XVI. CITIZENS' DISCUSSION:
AMOS PLANTE, Exxon liaison with the community,
stated that Exxon would not be working on the shoreline
cleanup past september 15. He stated that the company
was concerned about the safety of those working on
exposed shorelines. In addition, he noted that worker
effectiveness decreases substantially during the winter.
Plante stated that Exxon would inspect the shoreline and
assess conditions in the spring to determine what type
of effort is needed at that time. In response to a
question from Gieseler, Plante stated that Exxon cur-
rently employs about 500 people in Seward, most of whom
are Seward residents.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 10:20 p.m.
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PAGE 158 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
I.
CALL TO ORDER:
The August 14, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Meehan led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Meehan, Noll and
O'Brien (Hilton and Simutis were
excused)
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager/P&R Director Yanez,
Port Marketing Director Gates,
Engineering and utilities
Manager Diener, Harbormaster
Singleton, Fire Chief Gage,
Police Chief Bencardino, Finance
Director Gifford, Administrative
Assistant Martin, Hospital
Administrator Campbell, Librari-
an Nicolas and City Clerk Murphy
IV.
APPROVAL OF MINUTES:
NOLL MOVED TO APPROVE THE JULY 24 , 1989 ,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
v.
APPROVAL OF REGULAR MEETING AGENDA:
."!,.
NOLL MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN
AND CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Sewall gave a verbal report of the last Assembly meeting.
He noted that he had provided each Councilmember a packet
of information regarding the Borough's solid waste
problems and proposed solutions.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
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PAGE 159 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
JIM WOERN, 413 Third Avenue, spoke in favor of
the Chamber's request to negotiate a long term lease of
the Fort Raymond Subdivision property to house the
Chamber's offices and information center. He stated that
the proposed new location would better serve all of
Seward, including the downtown business district.
ANDY PATAPOFF, Mile .3, Resurrection Road,
thanked the Council for donating funds for the new Salmon
Derby Booth in the Boat Harbor.
MARILYN REYNOLDS, 225 Sixth Avenue, spoke in
support of the Chamber's request to lease Ft. Raymond
Subdivision property.
EUGENE MUMFORD, 1818 Phoenix Road, urged the
Council to approve the Chamber's request to negotiate a
lease to move its offices and information center to a new
location. He stated that the proposed new site would be
easier to locate and would provide ample parking for
visitors.
BRUCE SIEMINSKI, Jesse Lee Heights Subdivision,
spoke in support of the Chamber's request for lease of
city property.
JIM PRUITT, Maple Street, asked the Council to
consider scheduling a work session to discuss Small Boat
Harbor improvements.
DALE CLEMENS, Marina Subdivision, also re-
quested that Council schedule a work session to discuss
the Small Boat Harbor and the funds the city has avail-
able for harbor development and improvements.
VIII.
APPROVAL OF CONSENT CALENDAR:
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY, EXCEPT THAT NOLL NOTED HIS ABSTEN-
TION FROM VOTING ON ITEM NO.6. The following actions
were taken:
1. Resolution No. 89-088, designating the PURCHASING/RESO:
city manager as the authorized representative relative
to the purchase of equipment through the Alaska Surplus
Property Service, was approved;
2. Resolution No. 89-093, appropriating funds CHAMBER/RESO:
for a contribution to the Seward Chamber of Commerce for
enhancement of the new Salmon Derby booth, was approved;
3. Resolution No. 89-094, authorizing the OIL SPILL/RESO:
participation of the city of Seward in a joint applica-
1 ~f'
PAGE 160 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
tion to the state of Alaska for an Oil Spill Community
Assistance Grant to fund a project to identify and
quantify the socioeconomic effects of the EXXON VALDEZ
oil spill on affected municipalities, was approved;
4. June 30, 1989, invoice from Brittain,
Mersereau & Pentlarge for legal services totalling $90.85
was approved for payment;
ENCROACHMENTS / OTS: 5. Encroachment permi t issued to Brad
Snowden, dba New Seward Hotel and Saloon, was amended to
include the installation of four additional street lights
in front of the New Seward Hotel;
C.ATTY:
ENCROACHMENTS/JLH: 6. Permit for encroachment onto city right-
of-way adjacent to Lot 3, Block 1, Jesse Lee Heights
Subdivision, was issued to applicants william C. and
Jayne Noll;
ROW VACA'l'IONS/
OCEANVIEW SUB:
7. Vacation of First Avenue
adjacent to Block 5, Oceanview Subdivision
1, was approved without objection;
right-of-way
Addition No.
8. August 4, 1989, Taxable Sales Report,
First Quarter, 1989, as prepared by Finance Director Rick
Gifford, was noted for information;
9. August 10, 1989, memorandum from Harbor-
master Singleton concerning Small Boat Harbor Improve-
ments was noted for information;
10. July 28, 1989, memorandum from Assistant
City Manager Yanez concerning the speed limit on Dairy
Hill Road was noted for information; and
PERMITS FOR GAMES 11. Application for permit for Games of Chance
OF CHANCE & SKL: and Skill as filed by Seward Band and Choir Boosters was
noted for information.
PUBLIC HEARINGS:
(VECO Lease -
Waterfront Tr./
Wildlife Res-
cue Center)
CIT.DISC:
(John Burck-
hardt)
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law concerning a proposed LEASE
of city-owned property to VECO, Inc., to consolidate and
continue wildlife rescue operations in Seward on Tract
2, Seward Waterfront Tracts, was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
X.
PRESENTATIONS WITH PRIOR NOTICE:
A. JOHN BURCKHARDT, Woodland Hills Estates,
stated that his business, The Depot, had been burglarized
on August 1. He stated that the break-in had occurred
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PAGE 161 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
during the evening hours and appeared to have been drug
or alcohol related. Burckhardt stated that at the time
of the robbery, only one police officer was on duty in
Seward, and his job called for him to patrol all of
Seward, including the Seward Marine Industrial Center.
Burckhardt stated that the Council must be in the
forefront in the city's fight against drugs, providing
adequate funding for police investigation and protection
and instructing the administration to become more
involved in the war on drugs.
B. ANDY PATAPOFF and LORI DRAPER, represent-
ing the Seward Chamber of Commerce, urged the Council to
vote in support of the Chamber's request to begin
negotiations for lease of city property in Ft. Raymond
Subdivision. Draper stated that National Bank of Alaska
had donated the old bank building to the Chamber to house
its offices and information center. In addition, Dale
Lindsey had donated $5,000 to help offset the cost of
moving the building, METCO, Inc. has offered to provide
fill at the site at no cost to the Chamber, and Marathon
Fuel had agreed to donate fuel oil to the Chamber for the
first year in the new office. Also, General Telephone
had already placed an order for a public telephone to be
installed at the Chamber's new location. Patapoff noted
that the Chamber membership had been surveyed, and ninety
percent of the respondents favored moving the Chamber
complex to the proposed new site.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 9.15 OF THE SEWARD CITY
CODE, FIRE PREVENTION.
MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE
NO. 620~ THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. (Public hearing was scheduled for August
28, 1989.)
B. Ordinances for Public Hearing & Enact-
ment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
CIT.DISC: (pata-
poff & Draper/
Chamber Lease)
ELECTIONS/ORD:
(New Regs to con-
form to T 29)
PAGE 162 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ENACTING
MISCELLANEOUS REVISIONS TO THE SEW-
ARD CITY CODE, TITLE 4, ELECTIONS.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened~ no one appeared in order to be heard
and the public hearing was closed.
MEEHAN MOVED TO ENACT ORDINANCE NO. 618~ THE
MOTION WAS SECONDED BY NOLL AND CARRIED UNANIMOUSLY.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REGULAT-
ING HOURS OF OPERATIONS OF ESTAB-
LISHMENTS THAT SELL ALCOHOLIC BEVER-
AGES.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened.
KEITH CAMPBELL, 1910 Forget-Me-Not Circle,
administrator of Seward General Hospital, stated that
state-mandated protective custody medical exams and
treatments had cost the hospital in excess of $15,000
since January 1, 1989. During this period, some cost
savings had been effected by having the nurse on duty
prescreen inebriates to determine if hospitalization or
a doctor's services were needed. However, the state had
now ruled that nurses may not make that determination,
and all future inebriates brought to the hospital by the
police must be seen by a physician. Campbell stated
that closing the bars at 2:00 a.m. would not solve this
problem, but it would be a step in the right direction.
He urged the Council to enact the ordinance.
DAVID BUTTS, Mile .5, Resurrection Road,
stated that he was speaking in support of the ordinance
both as a concerned citizen of the community and as
president of the Church of Latter Day Saints. He stated
that he was concerned about alcohol's impact on chil-
dren, adults and the economy, and he urged enactment of
the ordinance.
MARK WOLDSETH, 324 Second Avenue, president of
the Seward Ministerial Association, stated that he was
speaking as a representative of some 11 congregations in
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PAGE 163 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
Seward. He stated that the Association was solidly
behind the proposed ordinance and he urged the Council
to vote for its enactment.
DEL DUBY, Forest Acres, spoke in opposition to
the ordinance, stating that prohibition would not work.
She stated that closing the bars at 2:00 a.m. wold not
stop people from drinking. Duby also stated that the
bars seemed to police themselves.
EUGENE MUMFORD, 1818 Phoenix, stated that the
proposed ordinance would not cure the problem, but it
would send a good message to the community, and es-
pecially to young people.
No one else appeared in order to be heard and
the public hearing was closed.
NOLL MOVED TO ENACT ORD INANCE NO. 619 ; THE
MOTION WAS SECONDED BY O'BRIEN.
Noll stated that, according to the New York
Journal of Commerce, alcohol is America's addiction of
preference, and no amount of money could combat that kind
of addiction. However, it was possible to narrow the
window of opportunity a bit so that the city's health and
safety people could get some rest at night. Noll added
that the alternative was additional health and safety
employees which equated to a risk of raising local taxes
to fund the increased burden on the city treasury. Noll
also noted that, until Statehood, bars in Seward had
closed at 1:00 a.m.
Dunham stated that she had grown up in Seward
during that time when the bars closed at 1:00 a.m. She
stated that then, and now, adults send a mixed message
to young people. She stated that this issue had arisen
every two or three years; however, the local liquor lobby
had always been too strong to allow passage of an
ordinance shortening bar hours. Dunham stated that she
would vote in favor of the ordinance.
Meehan stated that he appreciated the comments
of the citizens and other Councilrnembers; however, he
would be unable to support the ordinance in its current
form. Meehan stated that he grew up in a town where the
bars in the city limits closed before those outside the
city limits. He stated that this had been the cause of
many automobile accidents and had cost the lives of some
friends. Meehan stated that he could not support the
2: 00 a.m. bar closure unless it was a borough-wide
measure. He stated that he would like to see a resolu-
tion of the Council to the Borough Assembly asking that
it be put to a vote throughout the borough.
1 fi4
PAGE 164 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
Gieseler stated that he personally supported
closing the bars at 2:00 a.m.; however, he did not
believe that the five people sitting on the dais should
be the ones to make that decision. He suggested that
the ordinance be placed on the ballot for the voters to
decide.
GIESELER MOVED TO AMEND THE EFFECTIVE DATE OF
THE ORDINANCE TO READ "TO BECOME EFFECTIVE AFTER AP-
PROVAL BY THE VOTERS AT THE NEXT REGULAR ELECTION"; THE
MOTION WAS SECONDED BY MEEHAN.
Noll stated that, at budget time, the Council
had participated in several work sessions and had con-
ducted several public hearings. Following input from
the public and the administration, the Council had
approved a $13 Million budget for the city. He stated
that in a representative form of government, the Coun-
cil was elected to make tough decisions - like the budget
and the issue currently before it. Noll stated that the
City Attorney had suggested that the ordinance could
become effective in 30 to 45 days, allowing time for the
voters to file a referendum petition with the Clerk's
Office, forcing a vote on the measure. He stated that
this would show whether there was sufficient interest
from the public to put the ordinance to a vote.
O'Brien stated that the Council was elected to
make decisions, not to hide from tough issues by going
to the voters each time a controversial issue arose. He
added, however, that it would certainly be appropriate
to have the entire Council present before voting on the
ordinance.
Meehan stated that he did not see the problem
with giving the people a chance to speak on this issue.
NOLL MOVED TO POSTPONE ACTION ON THE ORDINANCE
UNTIL AUGUST 28, 1989; THE MOTION WAS SECONDED BY O'-
BRIEN AND CARRIED WITH FOUR "YES" VOTES AND GIESELER
VOTING "NO".
RECESS:
The meeting was recessed at 9: 00 p.m. and
reconvened at 9:10 p.m.
C. Resolutions:
WATERFRONT TR/RESO: 1. Copies having been made available to
(VECO Lease/ the public, Gieseler noted by title only a proposed
Wildlife Res- resolution entitled:
cue Center)
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
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PAGE 165 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
ING A SHORT-TERM LEASE FOR OPERATION
OF A WILDLIFE RESCUE CENTER.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-089;
THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS-
LY. (The Mayor ruled that O'Brien, an employee of VECO,
did not have a substantial financial interest in the
outcome of this vote.)
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF GRAIN TERMINAL
COMPONENTS FROM THE STATE OF ALASKA
AND AN OPERATING AGREEMENT WITH
KOBUK, INC.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-090;
THE MOTION WAS SECONDED BY O'BRIEN AND CARRIED WITH FOUR
"YES" VOTES AND MEEHAN ABSTAINING. (Meehan stated that
Kobuk, Inc., was a major customer of his; the Mayor
ruled that a conflict of interest did exist.)
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, PROVID-
ING FOR SUBMISSION TO THE QUALIFIED
VOTERS OF THE CITY THE QUESTION OF
THE ISSUANCE OF GENERAL OBLIGATION
BONDS OF THE CITY TO PAY THE COSTS
OF PLANNING, DESIGNING AND CONSTRUC-
TION OF CERTAIN SIDEWALK, STREET AND
STREET LIGHTING IMPROVEMENTS WITHIN
THE CITY AT THE ELECTION TO BE HELD
FOR THAT PURPOSE IN THE CITY OF
SEWARD, ALASKA, ON OCTOBER 3, 1989.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-091;
THE MOTION WAS SECONDED BY MEEHAN.
Arvidson noted typographical errors in the
resolution which would be corrected by the Clerk's
Office prior to signing.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
GRAIN TERM/RESO:
(Purchase ap-
proved/contract
w/Kobuk apprvd.
CON- 3-.;;-\ :
ELECTIONS/BONDS/
RESO: (Placing
bonds for strt
improvements on
100389 ballot)
SMIC/RE- /RESO:
(Extending
lease for 60
days)
PAGE 166 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
4. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, WAIVING
THE RIGHT TO TERMINATE AN EXISTING
LEASE WITH SEWARD SHIPS CHANDLERY
FOR A PERIOD OF SIXTY DAYS.
O'BRIEN MOVED TO APPROVE RESOLUTION NO. 89-
Q22; THE MOTION WAS SECONDED BY NOLL.
O'Brien objected to involving the attorney in
what seemed to be a straight forward request for a lease
extension. He stated that according to the documenta-
tion presented to the Council, Mr. Pruitt was not re-
sponsible for the delay in getting the wheels, and he
should not be penalized by the city.
Noll concurred and stated that he was reluc-
tant to issue a Notice of Default.
Dunham also stated that she could see no
reason to go to such extremes.
In response to a question from Meehan, Schaef-
ermeyer stated that under the terms of the city's agree-
ment with Pruitt, and in exchange for a very favorable
lease, Pruitt had agreed to meet certain minimum devel-
opment standards. He stated that his recommendation to
the city was intended to preserve all of the city's
rights under the contract while still allowing Pruitt an
opportunity to cure the default. He stated that dele-
tion of Section 1 of the resolution would remove any
references to default and should satisfy the Council's
concerns.
JIM PRUITT, Maple Street, stated that he had
kept the city posted on the status of the wheels since
the beginning. He stated that the wheels had been
ordered on January 5, and the order had been accompanied
by a 50% deposit to assure speedy delivery. However,
Synchrolift was currently experiencing some internal
problems and had been unable to make delivery. Pruitt
stated that he had investigated the possibility of
obtaining wheels from U. S. Steel but had been informed
by the city that since the shiplift was a Synchrolift
product, the city wished to use only Synchrolift parts.
NOLL MOVED TO AMEND THE RESOLUTION BY DELETING
SECTION 1 AND RENUMBERING SECTIONS 2, 3 AND 4 AS SEC
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TIONS 1, 2 AND 3; THE MOTION WAS SECONDED BY O'BRIEN AND
CARRIED UNANIMOUSLY.
O'Brien asked that the administration take the
"reasonable man" approach should another extension be
required. He stated that so long as an extension was
needed through no fault of Pruitt's he would prefer to
leave the attorneys out of things. However, if Pruitt
began to drag his feet or do anything to delay the
project, he would be quite willing to vote to issue the
Notice of Default and terminate the agreement.
Noll concurred.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED, AS AMENDED, BY UNANIMOUS VOTE OF THE COUNCIL.
XII. UNFINISHED BUSINESS:
A. Chamber of Commerce request to negotiate
a lonq-term lease of Lot 4, Fort Ravrnond Subdivision.
(Postponed from July 24, 1989, meeting) Murphy noted
that there was a motion on the floor to proceed with
lease negotiations as requested by the Chamber.
Meehan asked the Mayor to rule on his poten-
tial conflict of interest. He stated that he was a
member of a partnership which owned the office space
currently leased by the Chamber. Gieseler ruled that
a conflict of interest did exist.
O'Brien stated that he had been opposed to this
proposal initially, but after talking to several Chamber
members, he had changed his mind. He noted that one of
the deciding factors for him was the obvious private
support in the form of a donated building and funds for
relocation.
Dunham stated that she continued to oppose the
move. She stated that there were many people in town
who opposed locating the offices adjacent to the cemete-
ry. She noted that this site is often used for parking
during a funeral.
Noll stated that the city had taken a step in
the right direction with the signs which were due to be
erected within the next week or so. He stated that he
agreed with the Chamber representatives that the Chamber
offices should go wherever the Chamber wanted to put
them. He asked what was planned for the railcar cur-
rently housing the Information Cache. patapoff stated
that it would remain where it is and would serve as a
seasonal information center. Draper noted that there was
a suggestion that the railcar house a Mt. Marathon Race
CHAMBER/FT. RAY-
MOND SUB/LEASES:
(Chamber reqst
to negotiate
long term lease
DENIED)
LOBBYISTl CON- 1\ <b:
(Dawson cant.
extended for
one year)
PAGE 168 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
Museum. Noll asked if the Chamber would accept a caveat
in its lease with the city that the railcar remain at its
current location for the term of the lease. Patapoff
stated that he would be unable to speak for the Chamber
membership.
Schaefermeyer asked the Council to give the
administration some direction regarding lease rate. He
stated that the memorandum from Martin in the Council
packets listed two values - one reflecting the proper-
ty's value if the zoning remained "Institutional" and
another if it were rezoned "Commercial". O'Brien ob-
jected to using the borough's assessed valuation as fair
market value. Schaefermeyer responded that the only
value the city had, without going to appraisal, was as-
sessed value, and he contended that, if zoned "Institu-
tional", this was probably a reasonable indication of
fair market value.
Dunham objected to the Chamber's request that
the property be leased at no cost. She stated that,
except for property leased for such governmental pur-
poses as the prison, all property was leased at FMV.
Patapoff stated that the city currently leases several
parcels at no or only a nominal cost, including the IMS
property, the Chamber Salmon Derby Booth, Kenai Fjords
National Park Headquarters site, Army/Air Force Rec
Camps, and AVTEC.
THE QUESTION WAS CALLED AND THE MOTION FAILED
WITH THREE "YES" VOTE, DUNHAM VOTING "NO" AND MEEHAN
ABSTAINING.
B. Dawson lobbying services contract exten-
sion. (Postponed from July 24, 1989, meeting) Murphy
noted that there was a motion on the floor to approve
the contract extension as recommended by the administra-
tion at the last meeting.
Noll stated that he had contacted Dawson and
had asked him to reconsider his rate for lob~ng for the
city of Seward. Dawson reminded Noll that fiis contract
had been decreased some three or four years ago; how-
ever, he would consider either of two options: 1) con-
tinuation of his current contract; or 2) a 5% reduction
(to $66,500 annually) provided that he be allowed to
represent other municipalities.
THE QUESTION WAS CALLED, AND DAWSON'S CONTRACT
FOR LOBBYING SERVICES WAS CONTINUED THROUGH FISCAL YEAR
1990 AS RECOMMENDED BY THE ADMINISTRATION AT THE AUGUST
10, 1989, MEETING BY UNANIMOUS VOTE OF THE COUNCIL. (The
contract was continued under the same terms as last
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PAGE 169 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
year's agreement, except that payments would be made to
Dawson monthly throughout the year.)
XIII.
NEW BUSINESS: None
XIV.
CITY MANAGER REPORTS:
SCHAEFERMEYER stated that Gates had been
selected Chair of the interim citizens advisory commit-
tee to oversee Alyeska Pipeline Service Company's oil
spill response plan. The committee was currently
drafting a constitution and bylaws. Schaefermeyer noted
that the interim group would "sunset" at the end of
October.
SCHAEFERMEYER stated that Kobuk, Inc., had
sign7d the operating agreement approved earlier in the
even~ng. He also reported that Chris Gates had met with
the U. S. Navy during a visit to Washington, D. C., last
week to discuss Navy homeporting. Navy officials
indicated interest in a turnkey development. Gates had
also met with U. S. prison officials who stated that they
did not plan to pursue location of a federal prison in
Alaska. Schaeferrneyer also noted that the U. S. Senate
had approved a seaport customs officer for the Kenai
peninsula Borough; the House of Representatives had not
yet considered approval.
SCHAEFERMEYER stated that he would like to
assure the public and the city that there had been no
intent on the part of the administration to exclude local
interest in Navy homeporting infrastructure. He stated
that failure to advertise in the local newspaper had been
a clerical error.
SINGLETON reported that current harbor projects
included the fish cleaning rack, waste oil dumpsters and
a vacuum tank to handle waste oil. DIENER noted that
the city was "working against the weather" with the
various paving projects. He stated that bids would be
opened for all paving on August 21. North Dock water
line extension bids were scheduled to be opened on August
17.
SCHAEFERMEYER stated that the city had the
option to lease purchase either all or a portion of the
250-ton lift. he stated that he was currently exploring
the possibility of 100% financing, and Security Pacific
Bank had indicated that the project would be lease
financable. He added that projected revenues would be
sufficient to obtain a good bid from the financial
community and would allow the city to payoff the lease
with revenues generated.
170
PAGE 170 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
ARVIDSON stated that some 200+ lawsuits had
now been filed regarding the oil spill. He noted that
the Federal District Judge assigned to the cases would
be appointing a steering committee of attorneys repre-
senting various plaintiffs. The City of Kodiak attorney
believed there was a good chance tha~ he or another local
attorney could be appointed to that steering committee.
Arvidson stated that, unless the Council objected, he
would be submitting an affidavit to the court indicating
that local governments need to be represented on the
committee. Arvidson also stated that he would like a
work session with the Council in October to update
members on the oil spill.
xv.
COUNCIL DISCUSSION:
bills.
present
approval
O'BRIEN inquired about the status of attorney
Schaefermeyer responded that he intended to
February through June billings for Council
on August 28.
DUNHAM stated that the new librarian had been
helpful in supplying ordinances from other municipali-
ties regarding itinerant merchants and collection of
sales tax. She stated that none have really addressed
the problem of assuring that itinerant merchants collect
and pay sales tax to the borough. Dunham also concurred
with Noll that shoving money at the drug problem was not
the answer. Finally, Dunham encouraged Pruitt to par-
ticipate in the upcoming Fish Expo.
NOLL reported that the bill before the U. S.
Senate affecting the export industry would not affect
Suneel's export of coal to Korea. He stated that the
bill has a narrow focus dealing with nations that re-
ceive cash transfer payments from the United States.
Noll agreed that there was a need for further work
sessions regarding improvements in the Boat Harbor. Noll
suggested that a nonpartisan committee be establishedT1l
talk about what the community could do about the local
drug problem. He volunteered his time to participate as
a member of the committee.
MEEHAN complimented the DARE program and stated
that this was a step in the right direction. He also
noted that the Los Angeles school system had initiated
a new program placing police officers in the schools to
let children know that the police are not the enemy. He
stated that this program seemed to be working well and
might be worth investigating.
GIESELER encouraged interested persons to
attend an oil spill teleconference and public hearing on
Thursday, August 17, in Council Chambers beginning at
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PAGE 171 REGULAR MEETING - AUGUST 14, 1989
VOLUME 24
7: 30 p.m. Gieseler also stated that, in his opinion, the
city had taken a big step backwards in its relationship
with the Chamber of Commerce.
XVI. CITIZENS' DISCUSSION:
NEIL CAMERON, 525 Third Avenue, stated that he
was disappointed in the Council's failure to approve the
Chamber's request to negotiate a lease. He stated that
the Chamber members had approved the move by a landslide
vote and all public testimony had been in favor of the
move. He stated that the city had made a big mistake in
not approving the negotiations.
JIM PRUITT, Maple Street, requested that
Council schedule a work session to discuss boat harbor
improvements. Gieseler instructed the Clerk to schedule
a work session on Monday, August 21, 1989, beginning at
12:00 Noon in the Council Chambers to discuss Small Boat
Harbor and SMIC improvements and related matters.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
O'BRIEN asked for a description of the build-
ing to be constructed at SMIC. Diener noted that it
would contain space for a fire engine, equipment, the
oil skimmer, a small office, restroom, and storage for
shiplift parts. He stated that the basic building would
be 40 x 100 ft. and noted that bid opening was scheduled
for August 17.
DUNHAM stated that she had voted at the last
meeting to postpone action on the Chamber lease request.
She stated that she did not feel the issues had been
addressed properly, adding that other options could have
been explored.
XVI II .
ADJOURNMENT:
The meeting was adjourned at 11:20 p.m.
.. f't I
~I L.< f1..l..4
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17?
PAGE 172
REGULAR MEETING AUGUST 28, 1989
VOLUME 24
I.
CALL TO ORDER:
The August 28, 1989, regular meeting of the
Seward City Council was called to order at 7:33 p.m. by
Mayor Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Dunham led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilrnern-
bers Dunham, Hilton, Meehan,
Noll, O'Brien and Simutis
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager Yanez, Administra-
tive Assistant Martin, Port
Marketing Director Gates,
Engineering and utilities
Manager Diener, Finance Director
Gifford, Harbormaster Singleton,
Librarian Nicolas, Police Chief
Bencardino and City Clerk Murphy
PRESENTATIONS:
Gieseler presented John Brzostowski with a
plaque thanking him for his service to the community both
as a volunteer fireman and for providing translation
services to the police when dealing with Polish defec-
tors.
IV.
APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE AUGUST 14, 1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
Schaefermeyer requested the addition of Item
No. IX(C)(4), Resolution No. 89-103.
MEEHAN MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
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PAGE 173 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
Kenai peninsula Borough Assembly President
Jonathan Sewall gave a verbal report of the August 15
Assembly meeting. He stated that the next meeting would
be conducted in the Seward High School auditorium on
September 5.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
BRUCE SIEMINSKI, Jesse Lee Heights, stated that
he objected to the way the voting at the last meeting had
taken place. He stated that one Councilmember should not
be allowed to control action of the Council. He also
objected to allowing one to run for one office while
holding another. In response to a question from Noll,
Arvidson explained that the City Charter required four
affirmative votes to pass any motion and any effort to
change that to a majority of those present would require
a Charter amendment which would have to go to ballot.
VI II .
APPROVAL OF CONSENT CALENDAR:
Noll requested that Item No. 6 be moved to the
regular meeting agenda as Item No. XIII(B).
NOLL MOVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-098, awarding a contract
for paving in the Small Boat Harbor, was approved;
2. Resolution No. 89-099, approving a
contract for extension of water service to the North Dock
in the Seward Marine Industrial Center, was approved;
3. Resolution No. 89-100, approving a
contract with Corroon & Black, Inc., to provide insurance
broker and risk management services for the city, was
approved;
4. Resolution No. 89-101, appropriating funds
from the General Fund to the Parks ,and Recreation
Department budget for the purpose of operating a com-
munity schools program for the 1989-90 school year, was
approved;
5. Resolution No. 89-102, authorizing the
City Manager to negotiate a contract with Swenson
Construction Company for construction of a security and
storage building at SMIC, was approved;
6. MOVED TO REGULAR MEETING AGENDA;
173
CIT. DISCUSSION:
B. Sieminski/vat.
procedures on Counc.'
RESO/CON- /SBH:
Paving contract
RESO/CON- /smc
Extend water ser
to N. Dock
RESO/CON- /TNS:
Ins. Broker Con.
RESO/P&R/CON.SCHLS
RESO/CON- /SNIC
Swenson Cont.-
Security Bldg.
174
PUBLIC HEARING:
Chamber lease
PAGE 174 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
7. January - June, 1989, Fire Department
Activity Report was noted for information;
8.
as filed by
information;
Second quarter 1989 Taxable Sales Report
Finance Director Gifford was noted for
9. FY 1989 Financial Reports as filed by
Finance Director Gifford were noted for information;
10. August 23, 1989, memorandum from Engineer-
ing and utilities Manager Diener concerning construction
of Kimberly Apartments was noted for information; and
11. August 24, 1989, memorandum from Finance
Director Gifford listing purchase orders totalling
between $5,000 and $10,000 issued by the city since May
1, 1989, was noted for information.
XI.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law regarding the proposed LEASE
of city owned property known as Lot 4, Ft. Raymond
Subdivision, at the corner of the Seward Highway and
Coolidge Drive, to the Seward Chamber of Commerce for the
development of an office/visitor information center was
noted, and the public hearing was opened.
MARILYN REYNOLDS, 225 sixth Avenue, urged the
Council to approve the lease. She stated that the
Chamber had polled its members as requested by the
Council and the membership had voted by a landslide to
pursue a lease of this property. She said that this site
was the best available site to accomplish the Chamber's
objectives. She cited the need to welcome visitors to
Seward year-round and noted that an information center
at the gateway to the city would be more accommodating
to visitors to the area.
DAVID HEADLEY, 611 Fourth Avenue, stated that
KRXA supported the Chamber's efforts to move its informa-
tion center and offices. He stated that the new location
would better serve tourists and would let them know what
businesses are available in town.
DON SUTHERLAND, 225 Sixth Avenue, Vice Presi-
dent of the Chamber of Commerce, reminded the Council
that in November 1985, the Council had mandated that the
city support the Chamber in promoting tourism. He stated
that approval of this lease would be a step in that
direction.
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PAGE 175 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
LORI DRAPER, Old Mill Subdivision, stated that
two other communities in the borough (Kenai and Homer)
provided no-cost leases for their Chambers. She urged
the Council to approve the lease.
ANNE CASTELINA, 2508 Cedar Street, offered her
support to the Chamber in its efforts to move its visitor
information center and offices. She stated that, current-
ly, the Kenai Fjords Visitor Center is the first such
center the public sees on entering Seward. Consequently,
this center is visited by significantly more visitors and
tourists than the Chamber's railcar. She opined that
many of these visitors would visit the Chamber center if
it were located closer to the entrance to town.
ANDY PATAPOFF, Mile .3, Exi t Glacier Road,
President of the Chamber of Commerce, stated that the
Chamber did have other avenues to pursue should this
effort go awry, but this was now the Chamber's preferred
site.
No one else appeared in order to be heard and
the public hearing was closed.
B. Notice of public hearing as posted and
published as required by law regarding the proposed
CONTRACT AMENDMENT extending the billing arrangement
which provides for the collection of television fees by
the city for Denali Broadcasting was noted, and the
public hearing was opened.
DAVID HEADLEY, 611 Fourth Avenue, spoke on
behalf of Denali Broadcasting. He stated that since
Denali had been providing service, KTUU had been off the
air only 6 days. During that time, the station received
181 calls from those wanting service restored. He noted
that the translator was old and custom parts must be made
for it. He added that, if the city discontinued the
billing arrangement, this system would fail. He stated
that the public probably would not pay a separate TV fee
if invoiced by Denali. O'Brien asked if anything was
being done to improve the quality of the signal local
users were receiving. Headley stated that he had ordered
a part which should improve the signal. However, he
understood that a bad electric line coming into Seward
added to the problem. He estimated that the problem
should be solved within 60 days.
No one else appeared in order to be heard and
the public hearing was closed.
C. Notice of public hearing as posted and
published as required by law regarding the proposed
EXTENSION of the Air Force Recreation Camp LEASE ADDITION
PUBLIC HEARING:
TV Collection Agrmt
contract extension
Denali Broadcasting
PUBLIC HEARING:
AF Rec Camp Lease
ORD/ALCOHOL:
Regulating hours
of operation
PAGE 176 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
within Lot 6A, Ft. Raymond Subdivision, for an additional
two years through June 30, 1991, at a rate of $270 per
annum, was noted, and the public hearing was opened; no
one appeared in order to be heard and the public hearing
was closed.
X.
PRESENTATIONS WITH PRIOR NOTICE: None
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 5.35 OF THE CITY CODE TO
PROVIDE FOR SALES TAX ON GAMING
SALES.
SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE
NO. 621; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. Public hearing was set for September 11,
1989.
RECESS:
The meeting was recessed at 8: 15 p.m. and
reconvened at 8:22 p.m.
B. Ordinances for Public Hearing & Enact-
ment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REGULAT-
ING HOURS OF OPERATIONS OF ESTAB-
LISHMENTS THAT SELL ALCOHOLIC BEVER-
AGES.
Notice of public hearing as posted and pub-
lished as required by law was noted, and the public
hearing was opened.
SHARON JEAN, Lowell Point, former member of
the Kenai Peninsula Borough Assembly, stated that she
was a new resident of Seward. She noted that she was
currently serving as chair of the Governor' s In~erim
Health Commission and was a member of the SOADA Adv~sory
Board. She stated that most alcohol and drug abuse
programs in the state had been held to the 1987 level
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PAGE 177 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
this year, and a total of $3 Million in grant requests
within the state had not been funded. She noted that
the cost of alcohol abuse to the state mentioned in
letters in the Council's packets reflected only what had
actually been spent and was not a true reflection of the
cost of this problem. She stated that reducing bar hours
was a proper and appropriate role for the City Council
and she encouraged the Council to take this first step
in addressing the alcohol and drug abuse problems
existing in the community.
MARTIN FARRELL, 810 Third Avenue, stated that
he was representing a number of bar owners in Seward who
were concerned that long-held business and property
rights of the residents were to be taken away for very
poor reasons. He stated that the real reason for the
ordinance appeared to be economic and not related to the
treatment of alcohol abuse. Farrell critiqued each of
the "Whereas" clauses in the ordinance, stating that many
were not supported by fact.
JURIS MINDENBERGS, 1311 Fourth Avenue, stated
that sales taxes collected by the Breeze Inn made up one-
twenty-fifth (1/25) of the total sales taxes collected
in Seward. He stated that shortening bar hours would
result in the loss of 2 or 3 full time positions at the
Breeze Inn and a loss of sales tax revenue to the city
and the borough. He added that shortening bar hours
could also adversely affect the city's efforts to at-
tract conventions such as softball tournaments. He urged
the Council to reject the ordinance.
BRAD SNOWDEN, 525 Sixth Avenue, stated that
the Council was about to make a major decision which
deserved further study. He suggested that the ordinance
be placed on the ballot for a public vote.
DAVID HEADLEY, 611 Fourth Avenue, read into
the record a letter from Doris Corcoran objecting to the
ordinance.
DON HOLLAND, 320 Sixth Avenue, stated that if
the ordinance passed several jobs would be lost, creat-
ing a negative impact on the local community. He stated
that Seward now had many shift workers who would be hurt
by the earlier closing. Holland added that any in-
creased burden on SGH was attributable to the presence
of oil spill cleanup workers in town, and not local
alcohol abuse. Holland also stated that "driving out
the road" at 2:00 a.m. when local bars closed would
create a danger. He noted that one bar and two package
stores were located just outside the city limits. He
urged the Council to reject the ordinance, stating that
" r;l;:l
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PAGE 178 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
if it was approved, a referendum petition would be filed
with the Clerk.
KEN GOODWIN, 2519 Dimond, stated that the
earlier bar closings would hurt the local economy.
BILL MCLINN, Salmon Creek Road, spoke in
opposition to the ordinance.
DEL DUBY, 2519 Dimond, also spoke in opposi-
tion to the ordinance. She stated that the bars do a
good job of controlling themselves and their patrons.
No one else appeared in order to be heard and
the public hearing was closed.
Murphy noted that a motion for enactment and
an amendment which would place the ordinance on the
October election ballot were on the floor.
Gieseler noted that Council packets contained
letters from the following individuals in support of the
ordinance:
JAMES FREDRICKSON
DIANA THOMAS
MARIANNA & DUANE KEIL & FAMILY
DIXIE LANDENBURGER
SHERREL CALHOON
ETHEL BOTTCHER
THOMAS OSBORNE
ELAINE S. REAUSAW
BRENDA J. O'BRIEN
He noted that the packet also contained a letter from
JOHN TOWSLEY in opposition to the ordinance.
In addition, Gieseler noted that the following
individuals had submitted letters in opposition to the
ordinance just prior to the meeting:
SHELLEY J. WILLIAMS
DENIS L. DEWANE
JOHN F. GILLESPIE
CHET HAWKER
JERRY WALIEZER
KELLY SEELEY
NANCI RICHEY
MARYLEE HADDELAND
LAURA JONES
Gieseler stated that he intended to limit
debate among Councilmembers, allowing each member five
minutes during the first round and two minutes for
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PAGE 179 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
follow-up after each member had been given a chance to
speak.
O'BRIEN MOVED TO OVERRIDE THE MAYOR'S DIREC-
TIVE AND ALLOW MEMBERS OF COUNCIL TO SPEAK FOR AS LONG
AS THEY WISH; THE MOTION WAS SECONDED BY DUNHAM AND
CARRIED WITH SIX "YES" VOTES AND GIESELER VOTING NO.
O'Brien stated that he was pleased with the
amount of public comment the Council had received on this
issue. He added that, whatever the outcome, the public
had been served.
Meehan concurred and said that he was pleased
that the Council had conducted two public hearings to
give everyone a chance to be heard. He stated that, in
his opinion, the city did not have the facts and figures
to support some of the "Whereas" clauses in the ordi-
nance. In addition, he contended that the statistics
presented by Campbell at the last meeting did not war-
rant earlier bar closings. Meehan stated that bar hours
should be a borough decision, adding that he supported
a borough-wide vote on this issue. If that wasn't
possible, he stated, there should at least be a city vote
before the ordinance took effect. Meehan also contended
that the ordinance, as written, would prohibit one from
serving a drink to a guest in his home.
Dunham stated that she concurred with Noll's
comments from the last meeting. She said that this
action was a Council responsibility, and not everything
should go to a public vote. Dunham stated that it was
time to send a message to the young people in Seward to
show that "we have the courage to try to control our-
selves. " Responding to claims that shortened bar hours
would cause some to lose their jobs, she stated that she
would like to see a day when there would be layoffs at
SLAC, the Police Department and the hospital because of
a decrease in alcohol abuse within the community. Dunham
also stated that other communities had limited bar hours
and it was time for Seward to follow suit.
Hilton concurred. He stated that he, too, was
concerned about intoxicated bar patrons driving out of
town after leaving downtown bars, but that was happening
already. He stated that everyone present seemed to agree
that the community had an alcohol problem. He noted that
alcohol was one of the most addictive drugs available.
He added that regulating the hours when alcohol could be
purchased might not eliminate the problem, but it would
help to control the abuse between 2:00 a.m. and 10:00
a. m. Hilton agreed that economic concerns were an issue.
He stated that alcohol abuse had placed an increased
economic burden on both health and police services in the
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PAGE 180 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
community, and both the hospital and Police Dept. were
supported by the taxpayers. Hilton also noted that a
2:00 a.m. closing seemed to be the industry standard in
Alaska.
Noll stated that most comments in support of
this ordinance had come from health care providers who
were tired and emotionally drained from dealing with the
problems of alcohol abuse. He stated that the issue was
not a moral one, but an effort to narrow the window of
opportunity for those who want to purchase a drink in an
effort to give a break to the community's health and
safety people. He added that he agreed that this was
not the whole answer, but it should show some positive
results.
Gieseler stated that he still felt this issue
should be taken to the people for a vote.
THE QUESTION WAS CALLED ON THE AMENDMENT (WHICH
WOULD CHANGE EFFECTIVE DATE TO READ "AFTER APPROVAL BY
THE VOTERS AT THE NEXT REGULAR ELECTION"), AND THE MOTION
FAILED WITH GIESELER AND MEEHAN VOTING "YES"; DUNHAM,
HILTON, NOLL AND O'BRIEN VOTING "NO"; AND SIMUTIS
ABSTAINING.
MEEHAN MOVED TO AMEND SECTION ONE OF THE
ORDINANCE TO READ "NO LICENSEE OR EMPLOYEE OF A LIQUOR
ESTABLISHMENT SHALL SELL, FURNISH...."; THE MOTION WAS
SECONDED BY HILTON AND CARRIED WITH SIX "YES" VOTES AND
SIMUTIS ABSTAINING.
0' BRIEN MOVED TO DELETE THE LAST "WHEREAS"
CLAUSE FROM THE ORDINANCE; THE MOTION WAS SECONDED BY
MEEHAN AND CARRIED WITH SIX "YES" VOTES AND SIMUTIS
ABSTAINING.
MEEHAN MOVED TO CHANGE THE EFFECTIVE DATE OF
THE ORDINANCE TO SIXTY DAYS AFTER ENACTMENT; THE MOTION
WAS SECONDED BY HILTON.
Murphy and Arvidson answered several questions
regarding the referendum process and the time frames for
collecting signatures.
RECESS:
The meeting recessed at 9:40 p.m. and recon-
vened at 9:50 p.m.
THE QUESTION WAS CALLED ON THE AMENDMENT AND
THE MOTION FAILED WITH GIESELER AND MEEHAN VOTING "YES";
DUNHAM, HILTON, NOLL AND O'BRIEN VOTING "NO"; AND SIMUTIS
ABSTAINING.
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PAGE 181 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
HILTON MOVED TO AMEND THE EFFECTIVE DATE TO
READ THIRTY DAYS AFTER ENACTMENT; THE MOTION WAS SECOND-
ED BY NOLL.
Following some discussion regarding the effec-
tive date, HILTON WITHDREW HIS MOTION.
NOLL MOVED TO AMEND THE EFFECTIVE DATE TO READ
"TAKES EFFECT AT 12: 01 A.M., OCTOBER 1, 1989"; THE MOTION
WAS SECONDED BY HILTON AND CARRIED WITH FIVE "YES" VOTES,
DUNHAM VOTING "NO" AND SIMUTIS ABSTAINING.
MEEHAN MOVED TO MAKE THE ORDINANCE EFFECTIVE
BETWEEN OCTOBER 1 AND MARCH 31 OF EACH YEAR; THE MOTION
WAS SECONDED BY GIESELER.
Hilton stated that this would be setting the
ordinance up for failure. He stated that he would not
oppose addressing this issue again in the spring, but he
could not support an ordinance which was only effective
for part of each year. Noll concurred.
THE QUESTION WAS CALLED AND THE MOTION FAILED
WITH MEEHAN AND GIESELER VOTING "YES"; DUNHAM, HILTON,
NOLL AND O'BRIEN VOTING "NO"; AND SIMUTIS ABSTAINING.
Dunham asked Arvidson if the city would be able
to examine individual sales tax records at some later
date to determine if this change had affected income.
Arvidson stated that individual sales tax records were
not available for public review. O'Brien stated that the
proper evaluation factors would be police and hospital
statistics.
HILTON MOVED TO AMEND SECTION ONE BY CHANGING
THE SUNDAY OPENING HOUR TO 10:00 A.M.; THE MOTION WAS
SECONDED BY MEEHAN AND CARRIED WITH FIVE "YES" VOTES,
NOLL VOTING "NO" AND SIMUTIS ABSTAINING.
Meehan suggested that the ordinance allow the
bars to be open on certain special occasions. Arvidson
stated that a special opening could be approved by
resolution. Noll suggested that the administration get
together with bar owners to list these special occasions
so that an ordinance allowing these particular openings
could be presented for introduction at the next meeting.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
ORDINANCE NO. 619 WAS APPROVED WITH DUNHAM, HILTON, NOLL
AND O'BRIEN VOTING "YES"; GIESELER AND MEEHAN VOTING
"NO"; AND SIMUTIS ABSTAINING.
1R2
ORD/FIRE DEPT:
Amending Fire Code
RESO/CON- /TV:
Denali Brdct.
Contract Ext.
RESO/RE- /LEASE:
AF Rec Camp Lease
Extension
PAGE 182 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
[Simutis owns and operates a bar and res-
taurant, and Gieseler ruled that she had a conflict of
interest with regards to this ordinance.]
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 9.15 OF THE SEWARD CITY
CODE, FIRE PREVENTION.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
HILTON MOVED TO ENACT ORDINANCE NO. 620; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A CONTRACT AMENDMENT EXTENDING
THE BILLING AGREEMENT BETWEEN THE
CITY AND DENALI BROADCASTING.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
095; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED BY
UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING EXTENSION OF AIR FORCE RECREA-
TION CAMP ADDITION LEASE RE-023 AT
A FAIR MARKET RATE COMMENSURATE WITH
THE PRIMARY AIR FORCE RECREATION
CAMP LEASE.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
096; THE MOTION WAS SECONDED BY SIMUTIS.
Schaefermeyer noted that the resolution title
and body should reflect that this was a "less than fair
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PAGE 183 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
market lease". Arvidson stated that the resolution also
needed a "Whereas" clause waiving an appraisal of the
property.
SIMUTIS MOVED TO AMEND THE RESOLUTION BY ADDING
A FINDING THAT IT WAS IN THE PUBLIC INTEREST TO WAIVE
APPRAISAL OF THE SUBJECT PROPERTY; THE MOTION WAS
SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
THE RESOLUTION WAS APPROVED, AS AMENDED, BY UNANIMOUS
VOTE OF THE COUNCIL.
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A LESS THAN FAIR MARKET VALUE
LEASE OF LOT 4, FT. RAYMOND SUB-
DIVISION, WITH THE SEWARD CHAMBER OF
COMMERCE.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
097; THE MOTION WAS SECONDED BY NOLL.
HILTON MOVED TO AMEND THE INITIAL LEASE TERM
TO TEN YEARS~ THE MOTION WAS SECONDED BY SIMUTIS.
Hilton stated that he had originally opposed
a free lease, but it had now become obvious that there
was wide spread community support as reflected in sig-
nificant contributions from the private sector. He
stated that it did not make a lot of sense for the
Chamber to invest a great deal of money and effort to
relocate its offices and information center on the basis
of an 18 month lease.
HILTON ADDED TO HIS PRIOR MOTION TO AMEND A
PROVISION FOR TWO 5-YEAR OPTIONAL LEASE EXTENSIONS;
SIMUTIS CONCURRED. THE QUESTION WAS CALLED ON THE
AMENDMENT, AND THE MOTION CARRIED WITH SIX "YES" VOTES
AND MEEHAN ABSTAINING.
O'Brien stated that he could not favor a free
lease, but would support the lease if a token lease
payment were required.
DUNHAM MOVED TO AMEND THE LEASE TO PROVIDE
THAT DURING THE TERM OF THE LEASE THE WELCOME TO SEWARD
SIGN SHALL BE ALLOWED ON THE LOT, AND THE CHAMBER SIGN
SHALL BE DESIGNED SO AS NOT TO CLASH WITH THE CITY SIGN;
18:-1
RESO/RE- /CHAMBER
Chamber office lea1
Ft. Raymond Sub.
1R"
PAGE 184 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
THE MOTION WAS SECONDED BY HILTON AND CARRIED WITH SIX
"YES" VOTES AND MEEHAN ABSTAINING.
O'BRIEN MOVED TO AMEND THE LEASE TO PROVIDE
THAT THE RAILCAR INFORMATION CACHE IS TO REMAIN IN ITS
CURRENT LOCATION AS LONG AS IT IS USABLE; THE MOTION WAS
SECONDED BY HILTON AND CARRIED WITH SIX "YES" VOTES AND
MEEHAN ABSTAINING.
Hilton asked if the insurance required on Page
12 of the lease was adequate. Schaefermeyer stated that
the city's insurance broker, Corroon & Black, would be
reviewing insurance requirements for city leases and
contracts as a part of its services to the city, and he
recommended that any decisions regarding a change in
insurance requirements wait for C&B's recommendations.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
THE RESOLUTION WAS APPROVED WITH GIESELER, HILTON, NOLL
& SIMUTIS VOTING "YES"; DUNHAM AND O'BRIEN VOTING "NO";
AND MEEHAN ABSTAINING. [Meehan, having an interest in
the building currently housing the Chamber office, was
declared to have a conflict of interest and was required
to abstain from discussing or voting on the lease.]
RESO/DEC.OF
DISASTER: ..4. Copies having ?een made available to
the publ~c, G~eseler noted by t~tle only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, DECLAR-
ING A STATE OF DISASTER IN THE CITY
OF SEWARD AND REQUESTING ASSISTANCE.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
103; THE MOTION WAS SECONDED BY SIMUTIS.
Schaefermeyer stated that since Friday the
city had been in a high water situation with loss and
damage to Lowell Creek bridge, Spruce Creek Bridge,
Fourth of July, etc., all necessitating expenditures on
the part of the city beyond the city's capabilities. He
stated that this resolution would request that the
Governor declare this a disaster in order to make state
funds available to the city. He added that, due to the
extensive damage suffered in Anchorage, there might be
a federal declaration of disaster, freeing federal funds
for restoration. Schaefermeyer said that KPB Mayor
Gilman had already signed a declaration of disaster,
Mayor Fink was expected to request a declaration from
the Anchorage Assembly on Tuesday, and the Governor was
expected to sign a state declaration of disaster on
August 29.
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PAGE 185 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
THE QUESTION WAS CALLED, AND THE RESOLUTION
WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
XII. UNFINISHED BUSINESS: None
XIII.
NEW BUSINESS:
A. Protection and installation of "Welcome PROMOTION/SIGNS:
to Seward" signs. Dunham noted the two signs on display
in Council Chambers. She stated that the welcome sign
was too large to be brought into Chambers.
Meehan asked if the administration had inves-
tigated the possibility of putting a plexiglass covering
over the signs to protect them from weather and van-
dalism. Yanez stated that his staff would continue to
investigate the best possible means of protecting the
signs. Dunham asked that the staff avoid ruining the
three-dimensional effect of the signs and that the artist
be involved in protection efforts.
B. Attornev bills. MEEHAN MOVED TO APPROVE
PAYMENT OF INVOICES FROM PERKINS COlE AS FOLLOWS:
FEBRUARY 1989 - $25,034.56
MARCH 1989 - $23,771.97
APRIL 1989 - $22,234.75
MAY 1989 - $38,728.15
JUNE 1989 - $42,512.24;
THE MOTION WAS SECONDED BY SIMUTIS.
C.ATTY: (Invoices)
Arvidson noted that the city has been submit-
ting all oil spill related legal fees to Exxon for
reimbursement, and all such billings through May 1989
had been reimbursed from Exxon funds held by the bor-
ough. He stated that the June invoices had been sub-
mitted, but payment had not yet been received.
In response to a question from Noll, Arvidson
stated that he would like to have a work session regard-
ing the oil spill with the Council in October. He noted
that he was currently putting together Perkins Coie's
audit letter for the city, and he offered to provide an
additional explanatory letter to the Council to let it
know where the city stood on all the issues currently
before the attorneys. Arvidson anticipated that this
letter would be available in about 2 weeks.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
BY UNANIMOUS VOTE OF THE COUNCIL.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER noted that Senator Stevens would
be in Seward on Wednesday and would conduct a public
18f;
PAGE 186 REGULAR MEETING - AUGUST 28, 1989
VOLUME 24
meeting in Council Chambers from 9:30 a.m. until 11:00
a.m. He invited the Council and public to attend. He
stated that the Senator's visit was in anticipation of
the President's upcoming visit to Alaska.
SCHAEFERMEYER thanked the staff for its week-
end work restoring facilities and fighting the flood.
He noted that more rain was forecast for the Seward area.
SCHAEFERMEYER noted that the city would host
a visiting delegation from Korea at Friday'S Rotary
meeting.
SCHAEFERMEYER stated that Stevens had indi-
cated at an earlier meeting that he had endorsed Cordova
as the site to receive $4 Million for oil research
because of its all-weather airport.
xv.
COUNCIL DISCUSSION:
O'BRIEN asked the administration to submit a
report at the next meeting concerning where the city
stands in its efforts to put all leases on the same 5-
year appraisal schedule.
DUNHAM asked when the cut in Dimond Blvd. was
scheduled to be repaired. Diener stated that there were
a number of chuck holes in Seward which would be re-
paired as soon as the asphalt plant was set up and
operational.
MEEHAN stated that, as a result of the 1986
flood and recent high water, there would be a practic-
ally non-existent wild fish return into Resurrection Bay.
However, thanks to enhancement efforts of the Trail Lakes
Fish Hatchery, there had been a record return this year.
He stated that the city should lend its support to
continued state funding for enhancement programs.
SIMUTIS noted the Consent Calendar report from
Parks and Recreation showing proceeds from this year's
campground fee collection program. She stated that she
was happy to see such success now that the program was
being properly managed.
SIMUTIS stated that she was happy to see city
support for the Community Schools program.
SIMUTIS said she had received several com-
plaints concerning inconsistent fares being charged by
local taxicabs. She asked that an ordinance be prepared
for introduction at the next meeting which would require
that fares be posted in each individual cab.
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PAGE 187 AUGUST 28, 1989 - REGULAR MEETING
VOLUME 24
SIMUTIS asked if the Corps of Engineers would
be taking another look at Lowell Tunnel this winter.
Schaefermeyer stated that he hoped to get some federal
funds for restoration work after flood damages had been
assessed.
HILTON asked the clerk to prepare a resolution
for the next meeting requesting the Borough Assembly to
support a borough-wide earlier closure of bars and liquor
stores.
HILTON stated that he had been assured several
years ago that the fill which was dumped within the flood
plain along the highway would not affect property in
Forest Acres; however, it now appeared that streets and
private property within the subdivision were being
affected. He stated that this fill should either be
removed or large culverts should be installed to re-
direct the water during high water periods. Diener noted
that the fill in question had been placed along the
highway without a Corps of Engineers permit. However,
after the fill was in place, the Corps had presented the
owner with an after the fact permit.
GIESELER thanked city employees for their
efforts over the weekend. He also thanked Dunham and Noll
for the work they had put into the sign project.
XVI. CITIZENS' DISCUSSION:
MARILYN REYNOLDS, 225 Sixth Avenue, thanked
the Council for going forward with the Chamber lease.
She also noted that she would be representing the Alas-
kan office of the American Cancer Society at its upcom-
ing national conference where she would be promoting the
annual Polar Bear Jump. She thanked the Mayor for his
letter urging conference attendees to visit Seward for
this event.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
XVIII .
ADJOURNMENT:
The meeting was adjourned at 11:42 p.m.
~ .
L -,~~&4
Harry Gies~r
Mayor
.........,('7'10 '0.
1RR
C.CLERK
PAGE 188
SPECIAL MEETING - AUGUST 30, 1989 VOLUME 24
I.
CALL TO ORDER:
The August 30, 1989, special meeting of the
Seward City Council was called to order at 7:00 p.m. by
Mayor Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember Noll led the pledge of allegiance
to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Meehan, and Noll
(Hilton, O'Brien & Simutis were
absent)
Present also: City Manager Schaefermeyer and
City Clerk Murphy
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM
AND CARRIED UNANIMOUSLY.
V.
SPECIAL ITEMS:
(Resignation) A. Murphy stated that she was tendering her
resignation as City Clerk effective October 27, 1989, in
order to assume administrative control over two family
owned businesses. She stated that she had enjoyed her
eight years as an employee of the Council and regretted
leaving the position at this time. She noted, however,
that she would be willing to stay on for an additional
month, through November 1989, if the Council needed the
extra time to hire and train a replacement.
NOLL MOVED TO ACCEPT MURPHY'S RESIGNATION; THE
MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
B. Deputy Clerk Patricia Jones reported that
she was not interested in applying for the Clerk's
position. Murphy suggested that ads be placed in the
Alaska Association of Municipal Clerks Newsletter, in
the AML Newsletter and in major newspapers throughout the
state. She also suggested that the Council accept
applications through October 1, 1989. Following discus-
sion, Murphy was instructed to prepare a job announcement
for review and approval by a couple of councilmembers
prior to publication. She was instructed to list the
starting salary as DOE.
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PAGE 189
SPECIAL MEETING - AUGUST 30, 1989 VOLUME 24
VI.
COUNCIL DISCUSSION:
Gieseler noted that he would be out of town
September 8-23.
Noll stated that he, too, would miss the next
regular meeting.
VII.
CITIZENS' DISCUSSION: None
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
Assistant City Manager Yanez stated that
further investigation into methods for protecting the
city's new signs had indicated that varnish should not
be used. He stated that he had ordered a small quantity
of a new product called Graffiti-Guard which he intended
to test. He said his research indicated that this was
the best product available for this purpose.
was adjourned at 7:30 p.m.
E
~~~~,,;"4
Har E. Gieseler
Mayor
PAGE 189 REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
1.
CALL TO ORDER:
The September 11, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Vice Mayor Michael J. Meehan.
II.
OPENING CEREMONY:
Councilmember Hilton led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Vice Mayor Meehan and Council-
members Dunham, Hilton, O'Brien
and Simutis (Gieseler and Noll
were excused)
190
PAGE 190
REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
Present also: City Manager Schaefermeyer,
Assistant City Manager Yanez,
Engineering & Utilities Manager
Diener, Administrative Assistant
Martin, Finance Director
Gifford, Port Marketing Director
Gates, Librarian Nicolas,
Harbormaster Singleton, Police
Chief Bencardino and City Clerk
Murphy
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE AUGUST 28 AND
AUGUST 30, 1989, MINUTES AS WRITTEN; THE MOTION WAS
SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON.
MEEHAN MOVED TO AMEND THE AGENDA BY DELETING
ORDINANCE NO. 622 (ITEM NO. IX.A.l.); THE MOTION WAS
SECONDED BY SIMUTIS.
Council stipulated that a vote to approve the
amendment would also approve the main motion.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
WITH FOUR "YES" VOTES AND O'BRIEN VOTING "NO".
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall gave a short report on various actions
pending before the Assembly.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
JAMES A. KRASNANSKY, 536 Second Avenue, read
into the record a letter endorsing Consent Calendar Item
No. 5 (a petition of hospital employees encouraging the
Council to support an election to certify IBEW as the
legal bargaining agent for hospital employees). Kras-
nansky asked the Council to amend its personnel ordinance
to include hospital employees under the collective
bargaining provisions of the Code.
CIT.DISCUSSION:
J.Krasnansky -
SGH Employee
Petition for
Union Election
VIII.
APPROVAL OF CONSENT CALENDAR:
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PAGE 191 REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY 0' BRIEN AND
CARRIED UNANIMOUSLY. The following actions were taken:
1. Resolution No. 89-104, accepting a grant
increase from the state for the wastewater treatment
plant, was approved;
2. Resolution No. 89-105, authorizing
participation in the oil spill community assistance grant
program, was approved;
3. Resolution No. 89-106, authorizing a joint
application agreement between the city, Seward Life
Action Council and Mt. Marathon Native Association for
oil spill community assistance grant funds, was approved;
4. Resolution NO. 89-107, urging the Kenai
Peninsula Borough Assembly to enact legislation mandating
earlier closures for liquor establishments within the
borough, was approved;
5. A petition from Seward General Hospital
employees encouraging the City Council to order an
election of certification of IBEW as the legal bargaining
agent for SGH employees was noted for information; and
6. A status report from Administrative
Assistant Martin concerning city lease terms and ap-
praisal scheduling was noted for information.
IX.
PUBLIC HEARINGS: None
x.
PRESENTATIONS WITH PRIOR NOTICE: None
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1 . Deleted
2. Copies having been made available to
the public, Meehan noted by title only a proposed
ordinance entitled:
l Ql
I.
RESO/GRANT:
Wastewater trtmt.
RESO/GRANT:
Oil Spill Assistanc
RESO/GRANT:
Oil Spill Comm.Asst
RESO/ALCOHOL:
Requesting KPB earl'
bar closures
1q?
PAGE 192
REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
ORD/VEHTCLES FOR HIRE:
Requiring posting of
fares
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 8.20 OF THE CITY CODE TO
REQUIRE POSTING OF FARES IN VEHICLES
FOR HIRE.
ORD/SALES TAX:
Requiring sales
tax on gaming
sales
SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE
NO. 623; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY. Public hearing was scheduled for September
25, 1989.
B. Ordinances for Public Hearing & Enact-
ment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 5.35 OF THE CITY CODE TO
PROVIDE FOR SALES TAX ON GAMING
SALES.
Notice of public hearing as posted and pub-
lished as required by law was noted, and the public
hearing was opened.
MARILYN REYNOLDS, 225 Sixth Avenue, objected
to enactment of the ordinance as written until it was
determined how the ordinance would affect other gaming
operations of nonprofits, such as raffles, bingo, etc.
JONATHAN SEWALL, Forest Acres, stated that he
may have misled the Council earlier when he referred to
additional legislation or amendments to the Borough's
newly adopted sales tax ordinance. He stated that Mayor
Gilman intended to ask for approval of a policy on
interpretation of these new provisions by resolution of
the Assembly on September 19. Therefore, the wording of
this ordinance (No. 621) would not be affected.
No one else appeared in order to be heard, and
the public hearing was closed.
Meehan stated that he would prefer to postpone
the ordinance until the Borough Assembly had resolved
the various issues before it. O'Brien stated that,
since it did not appear that new legislation was forth-
coming from the borough, this ordinance should be en-
acted.
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PAGE 193 REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
THE QUESTION WAS CALLED AND THE ORDINANCE
FAILED WITH HILTON, 0' BRIEN AND SIMUTIS VOTING "YES", AND
DUNHAM AND MEEHAN VOTING "NO".
3. Resolutions: None
XII. UNFINISHED BUSINESS: None
XIII .
NEW BUSINESS:
A. Appointment of Seward Port Development
Advisory Committee. Meehan read a memorandum from the
Mayor asking for confirmation of his appointments to the
newly formed Ad Hoc Port Development Advisory Committee.
SIMUTIS MOVED TO CONFIRM THE APPOINTMENTS MADE
BY MAYOR GIESELER; THE MOTION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY. The following individuals were
appointed to serve on the Board for a period of one year:
RHONDA ANDERSON-HUBBARD
JOHN G. BAIRD
DALE B. CLEMENS
LEE D. GORDANIER
SCOTT D. LUST
TIM MOFFATT
ROBERT P. P. VAL DATTA
Meehan noted that the Committee would cease to exist in
September, 1990, unless continued by the Council.
XIV.
CITY MANAGER REPORTS:
middle
due to
Schaefermeyer noted that the city was in the
of its Harbor paving projects with sidewalk paving
start the next day if weather permitted.
XV.
COUNCIL DISCUSSION:
SIMUTIS asked if plans had been made to attend
Fish Expo in Seattle. Schaefermeyer stated that Martin,
Singleton and Gates would represent the city, adding that
he might accompany them.
O'BRIEN asked for a projects update from Gates.
Gates reported that the Trade Board had a very productive
meeting on September 5. He briefly reviewed the status
of the following projects:
1. Homeporting - Five statements of interest and
qualifications to provide the necessary infrastructure
had been received by the city. He stated that the city
193
PORT COMl1ITTEE:
Ad Hoc Comm. Apptmt
194
PAGE 194
REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
was attempting to secure state or Navy funding for an
EIS.
2. Visiting Korean Delegation A 25-member
delegation representing the Korean Economic Council
visited Seward last week.
3. Chugach Mill - Thus far, seven barge loads of
logs had arrived in Seward. He noted that there was
still work to be done on the dock tariff and prepayment
agreement between the city and Chugach. CAC was current-
ly working on construction of a chip-loading dock for
the shipment of chips to Korea. However, the city would
prefer processing of the chips at SMIC for the produc-
tion of a value-added product locally.
4. KPB Economic Development District - The EDD's
current project was the export of one million tons per
year of LNG from Nikiski to Korea. This would represent
a $200 Million investment in the borough.
5. Tourism - The current focus was reported to be
the upcoming SeaTrade Conference in Miami, Florida, in
February.
O'BRIEN stated that the tariff issue and
prepayment agreement with Chugach Alaska should be
resolved immediately. He also asked if there was any
guarantee that the city would not be importing a beetle
problem if beetle-kill trees were brought in from the
Cooper Landing area for processing at the Chugach mills.
KPB Assembly President Sewall stated that the borough
had received title to its land selections in the Cooper
Landing area two weeks ago and had begun fast-tracking
the problem. The plan would incorporate a fire break
around all populated areas. Sewall added that he had
been assured by the Park Service that the high level of
moisture in the Seward area (to Mile 12) would preclude
beetle infestation locally. However, the significant
number of trees affected elsewhere in the borough made
a major forest fire in the near future a virtual cer-
tainty.
MEEHAN noted that several members of Council
would be out of town on Thursday and asked the Clerk to
reschedule the work session with the Trade Board to
discuss oil spill research funding and the future of 1MB.
XVI. CITIZENS' DISCUSSION:
JONATHAN SEWALL, Forest Acres Subdivision,
thanked Gates for coming to the September 5, 1989,
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PAGE 195 REGULAR MEETING-SEPTEMBER 11, 1989 VOLUME 24
Assembly meeting. He also asked about the status of
defeated Ordinance No. 621. The Clerk explained that it
could be reintroduced by the Council at any time.
BOB VALDATTA, 528 Fifth Avenue, stated that
the city should participate in the September 29-30 SBA
show in Anchorage to let people know what was going on
in Seward. Valdatta also reported that the lights were
out on the Railroad Dock, and this had caused a problem
for a barge the week before.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
O'BRIEN stated that missing lights at the
Railroad Dock did not cause problems for the barge to
which Valdatta referred; rather, the barge came into the
Harbor on the wrong side of the buoy, causing it to miss
the dock entirely.
XVIII. ADJOURNMENT:
0.<" c:cr.'"u/',.("~:,,
#fl ;rr ~9l: tf:(i;t.ing
,{} ~~";'~~;:;:si0;h,;;",,
. ,
'"!~,;~::
was adjourned at 8:50 p.m.
~ ('" \' \
"-'!~ \ Y\.L '-.\.r-.....-
M~c ael J. M~ehan
Vice Mayor
1.
CALL TO ORDER:
The September 18, 1989, special meeting of the
Seward City Council was called to order at 5:10 p.m. by
Mayor Harry E. Gieseler.
II.
OPENING CEREMONY:
Councilmember O'Brien led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Noll,
O'Brien and Simutis (Meehan was
excused; Hilton arrived at 5:12
p.m. )
'9~
RESO/CON- /SBH:
Amend paving con.
w/Summit Paving
for handicap
accessible side-
walks & gutters
in SBH
PAGE 196
SPECIAL MEETING - SEPT. 18, 1989
VOLUME 24
Present also:
IV.
Manager of Engineering
utilities Diener and
Clerk Murphy
APPROVAL OF SPECIAL MEETING AGENDA:
and
City
NOLL MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY O'BRIEN
AND CARRIED UNANIMOUSLY.
V.
RESOLUTIONS:
A. Copies having been made available to the
public, Gieseler noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A CHANGE ORDER WITH SUMMIT PAV-
ING TO CONSTRUCT CURB, GUTTERS AND
HANDICAP ACCESSIBLE SIDEWALKS AND
TRAFFIC BARRIER IN THE SMALL BOAT
HARBOR.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-108;
THE MOTION WAS SECONDED BY SIMUTIS.
Diener stated that Summit Paving was the
contractor hired to perform sidewalk and paving pro-
jects previously approved by the Council. The Contrac-
tor had agreed to perform the additional work refer-
enced in the proposed resolution for a very reasonable
figure. Diener stated that this would provide a hand-
icap accessible sidewalk on the east side of Fourth
Avenue between the Harbormaster's Building and the
Coast Guard Facility. In addition, it would provide a
much needed pedestrian walkway on the east side of this
busy street. In response to a question from O'Brien,
Diener stated that some parking spaces would be lost in
the parking lot adjacent to the new sidewalk, but many
more spaces were being added to the Boat Harbor area
with the paving of other parking lots.
THE QUESTION WAS CALLED AND THE MOTION CAR-
RIED BY UNANIMOUS VOTE OF THE COUNCIL.
VI.
COUNCIL DISCUSSION:
DUNHAM asked
made in Forest Acres.
the asphalt plant was
would be made.
when paving repairs would be
Diener replied that as soon as
"up and running" the repairs
XVI. CITIZENS' DISCUSSION: None
I
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197
PAGE 197
SPECIAL MEETING - SEPT. 18, 1989 VOLUME 24
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
XVII I .
ADJOURNMENT:
,\lo;,,'!7~'T"'~~fi~'<:'it1eeting was adjourned at 5:29 p.m.
/<';:~';~.I> :;,"t to} "
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~ity.. Cle
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-----~~----------------------------------------
PAGE 197 REGULAR MEETING - SEPT. 25, 1989 VOLUME 24
AAE
~e~
Harr . Gieseler
Mayor
I.
CALL TO ORDER:
The September 25, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor Harry E. Gieseler.
II .
OPENING CEREMONY:
Councilmember Noll led the pledge of allegiance
to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll and Simutis (O'Brien was
excused)
Present also: City Manager Schaefermeyer, City
Attorney Tans, Finance Director
Gifford, Assistant City Manager
Yanez, Engineering & Utilities
Manager Diener, Administrative
Assistant Martin, Fire Chief
Gage, Port Marketing Director
Gates, Harbormaster Singleton,
Hospital Administrator Campbell,
Librarian Nicolas, Police Chief
Bencardino and City Clerk Murphy
PRESENTATIONS:
A. Gieseler read a proclamation designating
September 25, 1989, as Jeremy Amons Appreciation Day and
1~R
PROCLAMATIONS:
J.Amons Apprec.
Day
PRESENTATIONS:
Exxon presented
original water-
color to city
PRESENTATIONS:
Mayor presided
at swearing of
first ANG mem-
ber of unit to
locate in Seward.
CIT.CONNENTS:
D.Clemens - Port
Committee Report
PAGE 198 REGULAR MEETING - SEPT. 25, 1989
VOLUME 24
presented Jeremy with a plaque from the Fire Department.
Amons, using knowledge gained from a Fire Department Baby
Sitting Course, evacuated his younger sisters from his
house during a fire and took other appropriate action
while waiting for the Department to respond.
B. Exxon representative Amos Plante presented
the city with an original watercolor of the Seward
waterfront area by priscilla Messner. He also presented
a $2,100 grant to the Seward Teen Center to purchase new
game tables.
C. Gieseler presided at the swearing-in
ceremony for the first member of the Alaska National
Guard Unit to be stationed in Seward. National Guard
representatives presented the Mayor with a certificate
of appreciation for his efforts on behalf of the Guard.
IV. APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE SEPTEMBER 11 AND
18, 1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY
HILTON AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY NOLL AND
CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall was not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
DALE CLEMENS, Small Boat Harbor, reported on
the first meeting of the Port and Harbor Development
Advisory Committee. He stated that the Committee had
decided to set an agenda similar to that used by the
Trade Board. Committee members had requested and
received from the administration copies of various
reports concerning on-going city proj ects. He asked that
the Council provide clerical assistance to the Committee
to prepare agendas and take minutes of the meetings.
Clemens asked the Council for further direction concern-
ing the role of the Committee - Should it focus just on
the Small Boat Harbor or all ports, harbors and docks in
the city? He stated that the Committee had reviewed the
Harbor budget and the Uplands Plan. Members had re-
quested, but had not yet received, copies of the old
Harbor Commission minutes.
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PAGE 199
REGULAR MEETING - SEPT. 25, 1989 VOLUME 24
Gieseler stated that he would prefer to let the
new Council which would be sworn and seated on October
9 give the Committee its "marching orders". Hilton
stated that the Council wanted feed back from the
Committee concerning its scope of interests. Meehan, the
Council representative to the Committee, noted that the
Committee did not wish to limit itself to Small Boat
Harbor interests. Dunham stated that Council's original
direction was to include all marine-related development
in the community. Gieseler stated that the Committee
should play an active role in development of the revised
Comprehensive Plan of the city.
VII I .
APPROVAL OF CONSENT CALENDAR:
DUNHAM requested that Item "E" be moved to the
regular meeting agenda as Item No. "XI(C)(4)". HILTON
noted a typographical error in Item No. "F"; the Clerk
stated that it would be corrected before signing. NOLL
requested that Item "B" be moved to the regular meeting
agenda as Item No. "XI(C)(5)".
NOLL MOVED TO APPROVE THE CONSENT CALENDAR AS
AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANIMOUSLY. The following actions were taken:
A. Resolution No. 89-109, accepting delegated
authority from the Kenai Peninsula Borough to provide
zoning regulations within the city of Seward, was
approved;
B. Moved to regular meeting agenda;
C. Resolution No. 89-111, accepting addition-
al funding from the Kenai Peninsula Borough for update
of the Seward Comprehensive Plan, was approved;
D. Resolution No. 89-112, appropriating funds
to the Seward Comprehensive Plan Update, was approved;
E. Moved to regular meeting agenda;
F. Resolution No. 89-115,
purchase of Syncrolift coating without
of city bid procedures, was approved;
authorizing the
full utilization
G. Resolution No. 89-118, awarding a contract
to Motorola for the purchase of 911 emergency communica-
tions equipment without full utilization of city bid
procedures, was approved;
lq~
RESO/ZONING:
Accepting zoning
authority from KPB
RESO/COMP.PLAN:
Accepting funding
from KPB for update
RESO/COMPPLAN:
Appropriating funds
RESO/PURcHASING:
Synchrolift coating
RESO/PURcHASING:
911 Comm. Equipment
2(1~
C. ATTY:
ABCB:
Apollor Rest.
transfer
cON-
Seward Servo
contract ext.
PAGE 200 REGULAR MEETING - SEPT. 25, 1989
VOLUME 24
H. Invoices from Taylor & Hintze for legal
services as provided in the PCI Settlement Agreement as
follows were approved for payment:
April 1989 - $9,735.57
May 1989 - $3,439.72
M. Chisum - $2,051.62
I. September 12, 1989, notification from the
ABCB regarding an application for transfer of a liquor
license from Apollo Restaurant (Mihai Popescu) to Apollo
Restaurant (Argyrios and Deborah Danakos) was noted and
the Clerk was instructed to issue a letter of nonobjec-
tion to the proposed transfer;
J. Request for authorization to extend the
Seward Services contract for garbage disposal for one
year, through December 31, 1990, was approved;
PERMITS: Games K. ~am.es of Chance and Skill Permit issued
of chance & skill ~o Alaska Assoc~at~on of the Deaf for pull tab operations
~n Seward was noted for information; and
cOM.HOSP.BOARD:
S.Daniel Resig.
PUBLIC HEARING:
Gordanier Lease
Narina Sub.
L. Letter of resignation from the Seward
Community Hospital Board as filed by Sam Daniel was noted
for information and was formally accepted by the Council.
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law concerning the proposed long
term LEASE of Lot 1, Block 2, Marina Subdivision (501
Old Airport Road), to Lee D. Gordanier and Tanya D.
Sandefur, dba Four Seasons Boat Services, was noted and
the public hearing was opened; no one appeared in order
to be heard and the public hearing was closed.
X.
PRESENTATIONS WITH PRIOR NOTICE: None
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 12.10 OF THE SEWARD CITY
CODE, SIGNS.
NOLL MOVED TO INTRODUCE ORDINANCE NO. 624; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for October 9, 1989.
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PAGE 201
REGULAR MEETING - SEPT. 25, 1989 VOLUME 24
2. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ACCEPT-
ING DELEGATED AUTHORITY FROM THE
KENAI PENINSULA BOROUGH TO MAKE LAND
USE PLAN AMENDMENTS TO THE SEWARD
COMPREHENSIVE PLAN.
HILTON MOVED TO INTRODUCE ORDINANCE NO. 625;
THE MOTION WAS SECONDED BY NOLL AND CARRIED UNANIMOUSLY.
Public hearing was scheduled for October 9, 1989.
B. Ordinances for Public Hearing & Enact-
ment:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 8.20 OF THE CITY CODE TO
REQUIRE POSTING OF FARES IN VEHICLES
FOR HIRE.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed. Gieseler noted that
the Council had received a letter from Chris Williams,
owner of the Alaska Trolley Car Company, supporting the
proposed ordinance.
MEEHAN MOVED TO ENACT ORDINANCE NO. 623; THE
MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A LONG TERM LEASE WITH LEE D.
GORDANIER AND TANYA D. SANDEFUR, DBA
FOUR SEASONS BOAT SERVICES, FOR LOT
1, BLOCK 2, MARINA SUBDIVISION.
201
ORD/VEHICLES FOR
HIRE: Posting of
fares required
RESO/LEASE/RE-
Gordanier Lease
Narina Sub.
2,f}?
PAGE 202 REGULAR MEETING - SEPT. 25, 1989
VOLUME 24
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
114; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANIMOUSLY.
RESO/CON- /FIN.SERV: . ,2. Copies having ~een made available to
Indirect cost tud the publ~c, G~eseler noted by t~tle only a proposed
s Y resolution entitled:
RESO/OIL SPILL:
Shoreline Mon.
contract w/
Exxon
CON-
RESO/COMP,PLAN/
CON- : Con.
w/Hyett-palma
for update of
plan
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AWARDING
A PROFESSIONAL SERVICES AGREEMENT TO
DAVID M. GRIFFITH AND ASSOCIATES,
LTD., TO PROVIDE AN INDIRECT COST
STUDY FOR THE CITY.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
116; THE MOTION WAS SECONDED BY HILTON.
In response to a question from Noll, Gifford
explained that the DMG proposal had been chosen over the
Price Waterhouse proposal for a couple of different
reasons. First, DMG specialized in this type of study,
whereas PW was an accounting firm which did indirect
cost studies only as a side line. In addition, the DMG
fee was based on the recovery the city would realize as
a result of the study and was not a firm figure. Also,
DMG offered to review the jail operation and assess
whether the city was fully recovering its costs from the
state (for an additional $2,000).
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
3. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A SHORELINE MONITORING CONTRACT
WITH EXXON COMPANY USA.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
117; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMOUSLY.
4. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AWARDING
A PROFESSIONAL SERVICES AGREEMENT TO
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PAGE 203
REGULAR MEETING - SEPT. 25, 1989 VOLUME 24
HYETT-PALMA, INC., FOR COMPLETION OF
AN UPDATE OF THE SEWARD COMPREHEN-
SIVE PLAN.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
113; THE MOTION WAS SECONDED BY DUNHAM.
Dunham asked if the Planning Commission had
discussed this proposed agreement. Administrative As-
sistant Martin stated that the agreement had been dis-
cussed, but no formal action had been taken by the
Commission. Dunham objected to awarding the contract to
an out of state firm, stating that an Alaskan firm would
have a better feel for where Seward stands in the hier-
archy of the state. Noll stated that members of the
Enhancement Association had a lot of faith in Hyett-
Palma, having worked with them on the Enhancement Plan
over the last year. Simutis concurred and added that
Hyett-Palma had quite a bit of Alaskan experience and a
high level of familiarity with Seward. Meehan agreed,
adding that "we sometimes don' t have the expertise we
need within the state."
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FIVE "YES" VOTES AND DUNHAM VOTING "NO".
5. Copies having been made available to
the public, Gieseler noted by title only a proposed
resolution entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF AN ULTRASOUND
MACHINE FROM TOSHIBA AMERICA MEDICAL
SYSTEMS, INC., WITHOUT FULL UTILIZA-
TION OF CITY BID PROCEDURES.
NOLL MOVED TO APPROVE RESOLUTION NO. 89-110;
THE MOTION WAS SECONDED BY SIMUTIS.
Noll stated that he could not support purchas-
ing the equipment from Toshiba, but he would vote in
favor of purchasing GE equipment. Campbell stated that
not only was Toshiba's price lower, but Toshiba guaran-
teed "up-time" of at least 95%, a claim that GE did not
make. Campbell also noted that General Electric service
calls are very expensive, with the hospital paying
$250/hour for the serviceman from the time he leaves his
office in Anchorage.
Hilton asked if his status as a hospital
employee would constitute a conflict of interest with
respect to this resolution. THE MAYOR RULED THAT THERE
?,o~
RESO/PURCHASING:
Ultrasound Equip.
?,oa
PAGE 204 REGULAR MEETING - SEPT. 25, 1989
VOLUME 24
WAS NO SUBSTANTIAL FINANCIAL INTEREST ON THE PART OF MR.
HILTON.
NOLL MOVED TO AMEND THE RESOLUTION TO ALLOW
SEWARD GENERAL HOSPITAL TO PURCHASE THE G.E. EQUIPMENT;
THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE
"YES" VOTES AND GIESELER VOTING "NO".
MEEHAN MOVED TO POSTPONE ACTION ON THE RESOLU-
TION, AS AMENDED, UNTIL OCTOBER 9, 1989; THE MOTION WAS
SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
HILTON GAVE NOTICE OF RECONSIDERATION OF THE
AMENDMENT.
XII. UNFINISHED BUSINESS: None
XIII .
NEW BUSINESS:
A. Schaefermeyer noted that copies of the
1990 AML Draft Policy Statement had been included in the
Council packets for review. He stated that AML had asked
that the Council review the draft prior to the AML
conference in November.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER thanked the Council for its
support and wished them all the best in the upcoming
election.
MURPHY noted that her review of "Robert's Rules
of Order" indicated that she needed a motion and a second
to reconsider the amendment to Resolution No. 89-110 at
the next meeting. SIMUTIS MOVED TO RECONSIDER THE
AMENDMENT TO RESOLUTION NO. 89-110 AT THE OCTOBER 9,
1989, MEETING OF THE COUNCIL; THE MOTION WAS SECONDED BY
MEEHAN.
XV. COUNCIL DISCUSSION:
DUNHAM stated that the paving break in Forest
Acres was getting worse and asked that the contractor be
required to fill it with gravel daily.
MEEHAN wished Kiley Adelman'. a ,happy third
birthday.
NOLL stated that he was pleased to .hear:"that
University of Alaska's Board of Regents would be visit-
ing Seward next year. ~"
SIMUTIS asked if the D.A.R.E. program would be
continued for another year. Bencardino stated that; his
I
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205
PAGE 205
REGULAR MEETING - SEPT. 25, 1989 VOLUME 24
office planned to continue that program plus another
aimed at kindergarten children. In addition, Corporal
Chapman would be offering the D.A.R.E. program in Moose
Pass and Cooper Landing. Schaefermeyer noted that the
city was also attempting to secure funding from the
School District for the city liaison program which would
put a uniformed officer in the school on a daily basis.
HILTON stated that he was concerned about the
amount of gravel which was being transported through
Forest Acres. He noted that the road surface was
beginning to break down and asked if the city had con-
sidered putting weight restrictions on residential roads.
XVI.
CITIZENS' DISCUSSION:
if the
should
WALT SCZAWINSKI, 611 Monroe Street, stated that
city hired a good city manager and staff, there
be no reason to always go to consultants.
C. KEITH CAMPBELL, Forget Me Not Circle,
reminded the Council that they were invited to a recep-
tion at Dr. Pollard's house.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
MURPHY stated that the public was invited to
attend a public meeting at the Senior Center on Wednes-
day at 4:00 p.m. to hear Senator Murkowski's wife speak
about the recriminalization of marijuana.
HILTON stated that the landfill bond issue was
in trouble on the other side of the Peninsula and asked
Seward residents to support it.
NOLL thanked Sczawinski for his comments.
XVIII.
ADJOURNMENT:
The meeting was adjourned at 9:35 p.m.
~~~ 4~~o~
Harry G~eseler
Mayor
?or,
PAGE 206 SPECIAL MEETING - OCTOBER 4, 1989
VOLUME 24
I.
CALL TO ORDER:
The October 4, 1989, special meeting of the
Seward City Council was called to order at 4:15 p.m. by
Mayor Harry E. Gieseler.
II. OPENING CEREMONY:
Counci1member Meehan led the pledge of allegi-
ance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Hilton, Meehan, Noll,
O'Brien and Simutis (Dunham was
excused; Simutis arrived at 4:20
p.m. )
Present also: City Clerk Murphy, Deputy City
Clerk Jones and Receptionist
Watts
IV. APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED: THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
V.
NEW BUSINESS:
ELECTIONS:
Canvass of
10/03/89
Election
A. Murphy distri~uted a tally of the unof-
ficial results of the Octoberl,A, 1989, regular election.
She noted that a total of five hundred and fifty-nine
(559) ballots had been cast at the polls. Of these, five
hundred and fifty-one (551) ballots had been counted by
the election boards: the remaining eight (8) ballots were
questioned ballots to be considered by the Canvass Board.
Murphy also displayed the tally sheets and the lists of
those requesting and receiving absentee ballots prior to
the election.
Murphy distributed a list bearing the names of
the forty-eight (48) electors who had requested absentee
ballots. She noted that one ballot which had been mailed
had not been returned in time to be canvassed by the
board. She noted that all absentee ballots in her
possession had been cast by qualified voters of the city
and she recommended that the board count the forty-seven
(47) ballots cast by the below named voters:
PRECINCT NO.1
PRECINCT NO. 2
Donna G. Alexander
Jack S. Anderson
I
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?07
PAGE 207
SPECIAL MEETING - OCTOBER 4, 1989 VOLUME 24
Walter Allen
Valdemar C. Anderson
Vesta J. Anderson
Harvey H. Baker
Carmelitta A. Bencardino
Robert D. Booher
carolyn A. Bosela
John G. Brockman
Neil M. Cameron
David B. Clemens
Mary E. Clemens
Donald W. Cripps
Jean E. cripps
Jackie W. Dyer
Shirley A. Dyer
Kathryn A. Epton
Christine E. Hopkins
Arlita S. Hribernick
Mary T. Kaiser
Mark L. Kansteiner
Dale R. Lindsey
Bob E. Lloyd
Catherine McMillan
Pamela F. Oldow
Augustus J. Paul
Elwood Seater
Bradley K. Snowden
John M. Towsley
George H. Werner
Margaret A. Anderson
Ethel C. Bottcher
C. Keith Campbell
Cornelia V. Daley
Diana J. Oavis
willard E. Dunham
Peter Fitzmaurice
Annetta Gillespie
Robert M. Hayes
Christine A. Johnson
Larry E. Johnson
Carrie E. Lyall
W. Lee McAnerney
Elva E. Rappi
Christine Rice
Dennis M. Scholl
0' BRIEN MOVED TO ACCEPT THE CLERK'S RECOMMENDA-
TION TO COUNT THE FORTY-SEVEN (47) ABSENTEE BALLOTS; THE
MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
As O'Brien read the names of the absentee
ballot envelopes, Administrative Secretary Annie Martin
opened the outer envelopes. Upon her arrival, Simutis
assumed Martin's place at the canvassing table and
completed opening the envelopes, removed the plain white
inner envelopes and set them aside to be opened later in
the meeting.
Murphy distributed a list of persons casting
questioned ballots on election day. She stated that the
eight (8) questioned ballots had been cast by voters
whose names did not appear on the precinct registration
lists. She recommended that council reject all eight (8)
ballots as follows:
PRECINCT NO. 1
Norman Casagranda - Purged by Division of Elections
05/02/89
Sherry Cruse - Registered in Anchorage
?(W
PAGE 208 SPECIAL MEETING - OCTOBER 4, 1989
VOLUME 24
Diana Morris - Registered in Anchorage
Dennis Owens - Failed to change voter address 30
days before the election
William D. Rice, Jr. - Registered in Bear Creek
Doris E. Watson - Failed to register 30 days
before the election
James Weaverling - Purged by Division of Elections
05/02/89
PRECINCT NO.2
Rose Mae Bishop -
Registered in Bear Creek
0' BRIEN MOVED TO ACCEPT THE CLERK I S RECOMMENDA-
TION TO REJECT THE EIGHT (8) QUESTIONED BALLOTS; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
Murphy put the rejected ballots aside for safekeeping.
The absentee white ballot envelopes were
shuffled and opened by O'Brien and Simutis. The ballots
were removed and read aloud, with O'Brien reading the
proposition ballot and Simutis reading the candidate
ballot. Murphy read the results of the combined totals
as follows:
PRECINCT
NO.1
MAYOR OF COUNCIL
(2-Year Term; 1
to be elected)
GIESELER, Harry
NOLL, Bill
VALDATTA, Bob
WRITE-INS
86
117
144
o
COUNCILMEMBER
(2-Year Term; 3
to be elected)
BURGESS, Raymond 165
DEETER, Darrell 143
HILTON, David 168
MEEHAN, Michael 176
SIEMINSKI, Bruce 175
SUTHERLAND, Don 105
WRITE-INS 7
PROPOSITION NO. 1
($1.8 Million Bond
for Street, Light-
ing and Sidewalk
Improvements)
PRECINCT
NO. 2
ABSENTEE/
OUESTION TOTAL
64
83
51
o
15
16
14
.,,,..:\:1.'" ..
165
216
209
1
81 26 272
78 17 238
116 22 !'" 306
103 , 24 303
78 i\ ,23 ' , . "276
47 ~'13, 165
4 1 12
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209
PAGE 209
SPECIAL MEETING - OCTOBER 4, 1989 VOLUME 24
YES
NO
188
158
106
90
29
18
323
266
TOTAL VOTES CAST: 360
TOTAL VOTES COUNTED 353
199
198
48/8
47/0
607
598
Murphy stated that any defeated candidate or
any 10 qualified voters could protest the election by
filing a written complaint with the city Clerk prior to
5:00 p.m., Monday, October 9, 1989. She added that if
no such protest was filed, the city council, at its
regular meeting of October 9, 1989, would certify the
election as valid and declare the results official.
VI. COUNCIL DISCUSSION:
GIESELER congratulated the winning candidates.
VII. CITIZENS' DISCUSSION:
BOB VALDATTA stated that he would not be
contesting the election.
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS I COM-
MENTS: None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 4:45 p.m.
~ t:.-d,:;".~
Harry Gieseler
Mayor
210
ELECTION:
10/03/89
Election
Certified
Newly Elected
Nayor & Council
sworn & seated
PAGE 210 REGULAR MEETING - OCTOBER 9, 1989
VOLUME 24
I.
CALL TO ORDER:
The October 9, 1989 regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor Harry E. Gieseler
II.
OPENING CEREMONY:
Councilmember Dunham led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Gieseler and Councilmem-
bers Dunham, Hilton, Meehan,
Noll, O'Brien and Simutis
Present also : City Manager Schaefermeyer,
Assistant City Manager Yanez,
City Attorney Tans, Finance
Director Gifford, Manager of
Engineering & Utilities Diener,
Port Marketing Director Gates,
Administrative Assistant Martin,
Harbormaster Singleton, Police
Chief Bencardino, Librarian
Nicolas and City Clerk Murphy
IV. APPROVAL OF MINUTES:
O'BRIEN MOVED TO APPROVE THE SEPTEMBER 25 AND
OCTOBER 4, 1989, MINUTES AS WRITTEN; THE MOTION WAS
SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
SPECIAL ITEMS:
A. O'BRIEN MOVED TO CERTIFY THE OCTOBER 3,
1989, ELECTION AND TO DECLARE THE RESULTS VALID; THE
MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
B. Murphy administered the Oath of Office to
re-elected Councilmembers David L. Hilton, Sr., and
Michael J. Meehan and newly elected Councilmember Bruce
C. Sieminski. She then administered the Oath of Office
to newly elected Mayor William C. Noll. She presented
each with a certificate of election.
RECESS:
The meeting was recessed at 7: 35 p.m. and
reconvened at 7: 40 p.m. The newly sworn Mayor
and Council took their places on the dais and
thereafter participated in the remainder of the
meeting.
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PAGE 211
REGULAR MEETING - OCTOBER 9, 1989 VOLUME 24
SPECIAL ITEMS:
C. Noll presented O'Brien with a plaque
thanking him for his service to the city of Seward as a
member of Council from 1981-1983 and 1987-1989. He then
presented an inscribed gold pan and Mayor's gavel to
Gieseler in recognition of his service as Mayor of
Council from October 1985 until October 1989. Gieseler
thanked Noll, the Council and the community for allowing
him the honor of serving the community in this manner.
V.
APPROVAL OF REGULAR MEETING AGENDA:
MEEHAN MOVED TO MEET IN EXECUTIVE SESSION
IMMEDIATELY FOLLOWING THE CLOSE OF REGULAR BUSINESS IN
ORDER TO DISCUSS A PERSONNEL MATTER; THE MOTION WAS
SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON.
Noll requested that Item No. X (B) [Presentation
by Martin Farrell] be deleted from the agenda. He also
requested that New Business Items A and B be taken out
of order immediately following approval of agenda and
that New Business Item C be postponed until further
notice.
SIMUTIS MOVED TO APPROVE THE AGENDA AS AMENDED;
THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUS-
LY. Noll stipulated that an affirmative vote to amend
would carry the main motion.
XIII .
NEW BUSINESS: (Taken out of order)
A. Selection of vice Mavor. MEEHAN MOVED TO
APPOINT DAVID L. HILTON VICE MAYOR OF THE COUNCIL; THE
MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY.
B. Appointment of Councilmember to fill seat
vacated by Noll. Noll stated that he had talked to two
individuals who had expressed a willingness to serve out
the remainder of his Council term - Raymond M. Burgess
and Rhonda Anderson. Murphy noted that Jim Pruitt had
submitted a petition requesting that Council appoint
defeated Mayoral candidate Bob Valdatta to the vacant
seat.
Following discussion, MEEHAN MOVED TO APPOINT
BURGESS TO THE VACANT COUNCIL SEAT FOR A TERM TO EXPIRE
IN OCTOBER 1990; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY.
'/.11
PRESENTATIONS:
Plaques presented
to O'Brien &
Gieseler
VICE NAYOR: Dave
Hilton elected Vice
Mayor
COUNCIL, Burgess
appointed to fill
remainder of Noll's
term
?1?
RESO/DONATION:
Accepting Donation
from Exxon
RESO/SP.ELECTION:
Referring Ord.
619 to voters
RESO/GRANTS: Re-
questing Muni.
Assistance
RESO/PRISON:
TORA for Prison
Industries Add.
Approved
PAGE 212 REGULAR MEETING - OCTOBER 9, 1989
VOLUME 24
Murphy administered the Oath of Office to
Burgess, whereupon he took his seat on the dais and
thereafter participated in the remainder of the meeting.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Jonathan Sewall reported that he had not attended the
last Assembly meeting. He briefly reviewed items pending
before the Assembly which would be addressed at the next
meeting.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
JIM PRUITT was asked to hold his comments
until "City Manager Reports" when the 250-ton lift would
be discussed.
VII I .
APPROVAL OF CONSENT CALENDAR:
BURGESS noted that he was engaged in some
surveying work for Mindenbergs on property adjacent to
that mentioned in Item "G" and asked if this would
constitute a conflict of interest. Noll ruled that there
was no substantial financial conflict for Burgess on this
item.
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY. The following actions were taken:
A. Resolution No.
donation from Exxon and amending
as approved;
89-119, accepting a
the budget accordingly,
B.
No. 619 to the
in the city of
approved;
Resolution No. 89-120, referring Ordinance
voters at a special election to be held
Seward, Alaska, on December 5, 1989, was
C. Resolution No. 89-121, requesting munici-
pal assistance funding from the state of Alaska, was
approved,
D. Resolution No. 89-122, approving Amendment
No. 1 to the TORA between the city of Seward and the
state Department of Transportation and Public Facilities
for the purpose of building a prison industries addition,
was approved;
E. Resolution No. 89-123, authorizing the
RESO/FIN.SERVICES:
city manager to obtain MasterCard services from First
Auth. NasterCard
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PAGE 213
REGULAR MEETING - OCTOBER 9, 1989 VOLUME 24
National Bank of Anchorage for certain city employees and
elected officials, was approved;
F. Change Order No. 1 to the Klebs Mechani-
cal, Inc., contract for remedial ventilation at the
prison, increasing the contract by $2,178 in order to
modify access doors to fit openings was approved;
G. Request for Council consent to proceed
with public hearing and preparation of transfer agree-
ments for the trade of Lots 11, 12, and 13, Block 8,
Cliff Addition, to Juris Mindenbergs in return for the
dedication of 20 feet of land along the west side of
Cliff Addition, Replat No.1, as a street right of way,
was granted; and
H. October 5, 1989, memorandum from Gifford
listing purchase orders totalling between $5,000 and
$10,000 issued by the city since August 24, 1989, was
noted for information.
IX.
PUBLIC HEARINGS: None
X.
PRESENTATIONS WITH PRIOR NOTICE:
A. MIKE YANEZ, Assistant City Manager/Parks
and Recreation Director, and KARIN STURDY, P&R Program
Coordinator/Campground Manager, presented Council with
a final report on the 1989 Public Campground Season.
Meehan, Hilton and Dunham commended Yanez and Sturdy for
making such a success of this program.
B. Deleted
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Noll noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 2.30, BOARDS AND COMMIS-
SIONS, AND ADOPTING TITLE 15, PLAN-
NING AND LAND USE REGULATIONS, OF
THE SEWARD CITY CODE.
SIMUTIS MOVED TO INTRODUCE ORDINANCE NO. 626;
THE MOTION WAS SECONDED BY MEEHAN.
Schaefermeyer noted that this was one of the
last two steps the Council had to take in order to
{)1. t)
~, I
_.of > .~~
CON - coiH
approved - Remedial
ventilation/prison
CLIFF ADDITION:
Land Swap w/Minden-
bergs
PARKS & Rec: 1989
Campground Report
PAGE 214 REGULAR MEETING - OCTOBER 9, 1989
VOLUME 24
effect the transfer of zoning and limited planning powers
from the borough to the city. He stated that the city
had made no substantive changes in the Zoning Code;
however, once the new Comprehensive Plan was completed,
the Planning Commission and the Council could begin the
process of revising the Code.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
BY UNANIMOUS VOTE OF THE COUNCIL. Public hearing was
scheduled for October 23, 1989.
B. Ordinances for Public Hearing & Enact-
ment:
ORD/SIGNS: 1.
Sign Code Amended the public, Noll
dinance entitled:
ORD/P&Z: Accepting
delegated auth.
to make LUP
changes locally
Copies having been made available to
noted by title only a proposed or-
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 12.10 OF THE SEWARD CITY
CODE, SIGNS.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
MEEHAN MOVED TO ENACT ORDINANCE NO. 624; THE
MOTION WAS SECONDED BY DUNHAM.
Hilton questioned the language in Section
2(b), stating that it appeared to allow the construction
of additional nonconforming signs based on the existence
of a grandfathered nonconforming sign. Schaefermeyer
stated that the Planning Commission could consider the
existence of such a sign in its deliberations, but would
not be bound to issue a variance based on the existence
of a grandfathered sign. Noll noted that any action of
the Planning Commission could be appealed to the Coun-
cil.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
BY UNANIMOUS VOTE OF THE COUNCIL.
2. Copies having been made available to
the public, Noll noted by title only a proposed or-
dinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ACCEPT-
ING DELEGATED AUTHORITY FROM THE
KENAI PENINSULA BOROUGH TO MAKE LAND
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PAGE 215
REGULAR MEETING - OCTOBER 9, 1989 VOLUME 24
USE PLAN AMENDMENTS TO THE SEWARD
COMPREHENSIVE PLAN.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
HILTON MOVED TO ENACT ORDINANCE NO. 625; THE
MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to RESO/PURCHASING:
the public, Noll noted by title only a proposed resolu- Ultrasound
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF AN ULTRASOUND
MACHINE FROM GENERAL ELECTRIC MEDI-
CAL SYSTEMS WITHOUT FULL UTILIZATION
OF CITY BID PROCEDURES.
Murphy noted that there was a motion on the
floor to reconsider the amendment which was approved at
the last meeting.
THE QUESTION WAS CALLED ON THE MOTION TO
RECONSIDER, AND THE MOTION CARRIED BY UNANIMOUS VOTE OF
THE COUNCIL.
NOLL MOVED TO WITHDRAW HIS ORIGINAL MOTION TO
AMEND THE RESOLUTION; THE MOTION WAS SECONDED BY MEEHAN
AND CARRIED UNANIMOUSLY. (The resolution now approved
purchase of equipment from Toshiba Medical Systems.)
SIMUTIS MOVED TO AMEND THE RESOLUTION BY
INSERTING THE FOLLOWING CLAUSE IN THE PREAMBLE:
WHEREAS, ULTRASOUND EQUIPMENT IS HIGHLY
SPECIALIZED EQUIPMENT AND IS AVAILABLE FROM A
VERY LIMITED NUMBER OF SUPPLIERS;
THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUS-
LY.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
RESOLUTION NO. 89-110 WAS APPROVED BY UNANIMOUS VOTE OF
THE COUNCIL.
2. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
tion entitled:
21f1
RESO/PURCHASING:
Hospital Equipment
PAGE 216 REGULAR MEETING - OCTOBER 9, 1989
VOLUME 24
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHOR-
IZING THE PURCHASE OF CERTAIN HOS-
PITAL EQUIPMENT WITHOUT FULL UTIL-
IZATION OF CITY BID PROCEDURES.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-125;
THE MOTION WAS SECONDED BY BURGESS.
Noll noted that the city would be taking only
one percent of the grant funds received for hospital
equipment to cover administrative overhead.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
RECESS:
The meeting was recessed at 8:55 p.m. and
reconvened at 9:02 p.m.
XII. UNFINISHED BUSINESS: None
XIII.
NEW BUSINESS:
A. Taken out of order earlier in the meeting
B. Taken out of order earlier in the meeting
C. Postponed until further notice
XIV. CITY MANAGER REPORTS:
A. Northern Economics draft reoort on as-
sessment of a ~roposed 250-ton Travelift. Noll asked
Jim Pruitt to come forward to make his presentation prior
to the Administration's report.
JIM PRUITT, Maple Street, stated that the
Northern Economics report was written without considera-
tion of the other lift facilities available in Seward.
In addition, he asserted that the lift would not pay for
itself and would be uneconomic if grant monies were not
used to offset some of the costs. Pruitt objected to
using Small Boat Harbor grant monies to make what he
considered a marginal investment at the Marine Indus-
trial Center.
Gates stated that Northern Economics had been
asked to make a third party assessment of the feasibili-
ty of the proposed 250-ton lift at the request of the
City Council. He stated that the report indicated that
the lift would be a good investment for the city. He
contended that the city needed a money maker at SMIC to
help offset some of the losses incurred by operation of
the shiplift. Gates further noted that the report did
I
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PAGE 217
REGULAR MEETING - OCTOBER 9, 1989 VOLUME 24
take the shiplift and the 50-ton lift into considera-
tion and found that there was an unmet need for service
to boats falling in the middle. He added that storage
revenues would more than make up for any loss of rental
revenues in the uplands. Finally, Gates stated that
the lift would not be in direct competition with the
shiplift, adding that the city wanted Pruitt to succeed
and would do nothing to jeopardize the success of his
venture at SMIC.
In response to a question from Hilton, Sing-
leton stated that, based on the $40/ft. fee that would
be charged under the proposed new shiplift tariff, it
would cost $3200 to lift an 80-foot boat on the ship-
lift opposed to $375 to lift that same boat with the
Travelift.
Gates asked Council's authorization to begin
marketing the 250-ton lift at the upcoming Fish Expo in
Seattle. Dunham stated that she favored using Fish
Expo as an opportunity to survey the market, but would
oppose marketing a service which has not yet received
Council approval.
Meehan stated that he believed there was a
very real need for the 250-ton lift, adding that Sing-
leton's estimate of the market appeared to be conserva-
tive. He noted that most of the fishermen he had
talked to concerning the proposed new lift had indi-
cated that they would use the facility rather than take
their boats to Seattle over the winter. Meehan stated
that, in his opinion, the purchase of the new lift
would complement Pruitt's operation.
In response to a question from Noll, Schaef-
ermeyer stated that approximately $800,000 of the SBH
grant funds remained uncommitted. He noted that total
cost of the travelift and associated development would
be about $1. 7 Million. He anticipated issuing a re-
quest for proposals for financing the acquisition of
the lift, estimated to cost $850,000.
Sieminski stated that he was concerned that
the city was turning its back on the syncrolift. Simu-
tis reminded Council that the administration was not
asking Council to approve purchase of the lift, but
only authorization to seek proposals for financing and
for engineering and design.
In rebuttal, Pruitt reiterated that he was
opposed to using SBH grant funds to invest in a new
facility at SMIC.
21 P,
PAGE 218 REGULAR MEETING - OCTOBER 9, 1989
VOLUME 24
Burgess noted that there did not seem to be a
conflict between Pruitt's operation and the city's
proposal to purchase a 250-ton lift since the city
would be lifting boats primarily for storage while
Pruitt would lift them for repair and maintenance.
Hil ton added that to use the syncrolift to
lift boats for storage would require a substantial
expansion of the existing rails system and would not be
feasiblee He stated that, in his opinion, the
Travelift would be the more flexible approach to moving
vessels for uplands storage.
NOLL STATED
COUNCIL FOR THE CITY
FOLLOWING:
1.
250-TON LIFT
2.
THE TRAVELIFT;
3.
ENGINEERING OF
THAT THERE WAS NO OBJECTION FROM
MANAGER TO GO FORWARD WITH THE
CONDUCTING
AT FISH EXPO
PROCEEDING
AND
PROCEEDING
THE DOCK.
A MARKET SURVEY REGARDING THE
IN SEATTLE;
WITH AN RFP FOR FINANCING OF
WITH AN RFP FOR DESIGN AND
B. Schaefermeyer stated that Herman Leirer
had consummated the sale of Seward Services and was
about to pass control of the company to Jason McDonald.
He stated that under Seward Services' contract with the
city, any assignment would require Council approval.
Schaefermeyer said he would bring this before the,Coun-
cil for action on October 23.
xv.
COUNCIL DISCUSSION:
HILTON thanked the Council for appointing him
Vice Mayor.
MEEHAN complimented Diener on the. paving
which was being completed in the Small Boat Harbor. He
asked when final patching of city streets would be
completed. Diener stated that the asphalt plant had
been brought back on line this afternoon and street
patching would be completed soon. Meehan also asked
Noll to schedule a work session with the Port Develop-
ment Committee. NOLL INSTRUCTED THE CLERK TO SCHEDULE
A JOINT WORK SESSION FOR NOON, WEDNESDAY, OCTOBER 11,
1989.
SIMUTIS stated that she would be attending
Fish Expo in Seattle and would try to get a feel for
how the fishing community feels about the 250-ton lift.
BURGESS thanked the Council for appointing
him to the vacant Council seat.
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PAGE 219
REGULAR MEETING - OCTOBER 9, 1989 VOLUME 24
NOLL thanked Rhonda Anderson for volunteering
to serve on Council and he thanked those who had pro-
posed Valdatta for the seat. Noll asked when the Coun-
cil could expect to get the first quarter budget vari-
ance report from the administration. Schaefermeyer
stated that he hoped to have it ready by the first
meeting in November. Noll also asked about the process
for securing the $1.8 Million bond approved by the
voters. Schaefermeyer stated that he was in the proc-
ess of getting approval from the Bond Bank for assis-
tance in purchasing the bonds.
NOLL APPOINTED SIMUTIS TO BE THE COUNCIL'S
REPRESENTATIVE TO THE COMMUNITY HOSPITAL BOARD.
XVI. CITIZENS' DISCUSSION: None
XVII .
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 10:40 p.m., and
after a brief recess, the Council reconvened in Execu-
tive Session to discuss a personnel matter.
~~
W~lliam C. Noll
Mayor
I.
CALL TO ORDER:
The October 11, 1989, special meeting of the
Seward City Council was called to order at 12:02 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Burgess led the pledge of
allegiance to the flag.
III.
ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Dunham, Hilton, Meehan,
Sieminski and Simutis
220
RESO/C.CLERK:
Authorizing
6-month leave
of absence
PAGE 220 SPECIAL MEETING - OCTOBER 11, 1989 VOLUME 24
Present also: City Manager Schaefermeyer and
City Clerk Murphy
IV. APPROVAL OF SPECIAL MEETING AGENDA:
HILTON MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS
AND CARRIED UNANIMOUSLY.
V.
RESOLUTIONS:
A. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
THE CITY CLERK'S CONTRACT BY AUTHOR-
IZING A 6-MONTH LEAVE OF ABSENCE.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
125; THE MOTION WAS SECONDED BY DUNHAM.
Noll noted that the Clerk had, at the request
of the Council, withdrawn her resignation and had asked
for a six-month leave of absence. Under the terms of
the leave, the Clerk would take annual leave until all
accumulated leave time was exhausted and would then go
on leave without pay status. During her leave, she
would be compensated for any work done on behalf of the
city. In addition, her health and life insurance bene-
fits would continue in force throughout her leave.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
VI. COUNCIL DISCUSSION: None
VII. CITIZENS' DISCUSSION: None
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS: None
IX.
ADJOURNMENT:
The meeting was adjourned at 12:08 p.m.
~~
~ ~am C. NOLL
Mayor
(City Seal)
\
'0
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PAGE 221
REGULAR MEETING-OCTOBER 23, 1989 VOLUME 24
I.
CALL TO ORDER:
The October 23, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Dunham led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Dunham, Hilton,
Sieminski and Simutis (Meehan
was excused)
Present also: City Manager Schaefermeyer, City
Attorney Tans, Engineering and
Utilities Manager Diener, Port
Marketing Director Gates, Fire
Chief Gage, Deputy Fire Chief
Squires, Finance Director
Gifford, Harbormaster Singleton,
Librarian Nicolas, Hospital
Administrator Campbell, Deputy
City Clerk Jones and City Clerk
Murphy
SPECIAL ITEM:
A. Noll read a proclamation designating
October 22-29, 1989, as Red Ribbon Week and Drug Free
America Week in Seward and presented a $50.00 check to
the Teen Center on behalf of the city of Seward. Teen
Council members presented Councilmembers with red ribbons
symbolizing a commitment to a drug free lifestyle.
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE OCTOBER 9 & l1,
1989, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY
SIMUTIS AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
Schaefermeyer added Resolutions No. 89-134 and
89-135 to the Regular Meeting Agenda.
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY.
RESO/C.CLERK:
Apptg.P.Jones
Acting C.Clerk
RESO/SENIOR CENTER:
Joint Ngmt. Agrmt.
approved
RESO/CON- /
Assignment of
garbage con.
approved
RESO/CON-
Headstart Use
Agrmt. approved
RESO/PERS-RIP:
City partici-
pation apprvd
C.ATTY: Apprvg
legal servo
charges/PCl
Settlement
PAGE 222 REGULAR MEETING-OCTOBER 23, 1989
VOLUME 24
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assembly President
Sewall was not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
None
VIII.
APPROVAL OF CONSENT CALENDAR:
Sieminski asked that Consent Calendar Items "C"
and "I" be placed on the Regular Meeting Agenda for
discussion. Hilton noted that he would abstain from
voting on Consent Calendar Item No. "F".
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. The following actions were taken:
A. Resolution No. 89-126, appointing Patricia
J. Jones Acting City Clerk and setting her salary, was
approved;
B. Resolution No. 89-l27, approving a Joint
Management Agreement for the Senior/Community Center and
Museum, was approved;
C. Moved to Regular Meeting Agenda;
D. Resolution No. 89-131, authorizing the
assignment of the contractual agreement for the collec-
tion and disposal of garbage, rubbish and waste material
in the city of Seward from Herman Leirer, dba Seward
Service, to Jason McDonald, dba Jason Enterprises, was
approved;
E. Resolution No. 89-132, authorizing the
participation of the city of Seward in a Use Agreement
with Rural Alaska Community Action Program, Inc., for the
purpose of a Head Start Program, was approved;
F. Resolution No. 89-133, authorizing the
city's participation in the state of Alaska's Public
Employees' Retirement System Retirement Incentive
Program, was approved [Hilton abstained from voting on
this resolution];
G. June and July, 1989, invoices from Taylor
and Hintze for legal services regarding the PCI Settle-
ment and totalling $6,224.69, were approved for payment;
I
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PAGE 223
REGULAR MEETING-OCTOBER 23, 1989 VOLUME 24
H. July 1989 invoice from Perkins Coie for G.ATTY:
legal services totalling $27,429.99 was approved for
payment;
I. Moved to Regular Meeting Agenda;
J. First Council meeting in November was
rescheduled to November 6, 1989;
C.COUNCIL: Resched.
meeting.
K. Application for permit for games of chance
and skill as filed by Seward Life Action Council was
noted for information;
L. Change Order No.1 to the H2W Constructors
contract for a prison industries addition at SCCC to
provide a field office for DOT/PF and miscellaneous
compaction and gradation tests for an added amount of
$7,950.00 was noted for information;
M. October 17, 1989, memorandum from En-
gineering & utilities Manager Diener noting that a
purchase order for winter street sand had been issued to
METCO, Inc., for an amount NTE $8,116.00, was noted for
information;
N. October 6, 1989, contract completion
report regarding American Builders Contract No. CON-137
as filed by Diener was noted for information;
O. October 16, 1989, memorandum from Gifford
and attached schedule of city investments as of 09/30/89
was noted for information;
P. October 16, 1989, memorandum from Gifford
and attached list of bad accounts from the Harbor Fund
which had been written off by the city was noted for
information; and
October
AMERICA
Q. Proclamation of the Mayor designating PROCLAMATION:
22-29, 1989, as RED RIBBON WEEK AND DRUG FREE Red Ribbon Week
WEEK in Seward was noted for information.
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and PUBLIC HEARING:
published as required by law regarding a proposed LEASE CAC Lease
of a city-owned one acre parcel located within USS 4827
to Chugach Alaska Corporation for modular housing storage
for a term to expire in May 1990 was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
x.
PRESENTATIONS WITH PRIOR NOTICE:
"?!1
C) ......1
PAGE 224 REGULAR MEETING-OCTOBER 23, 1989
VOLUME 24
A. Harry Gieseler and Neil Cameron presented
the city with a framed award certificate designating the
city's video as one of the finalists in the 1989 Arts and
Entertainment Video Awards. Gieseler noted that this
video and the other seven winners would be televised on
the A&E Network on Sunday, December 10, at 4:00 p.m.,
Alaska time.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Noll noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 9.15 OF THE SEWARD CITY
CODE, FIRE PREVENTION.
SIEMINSKI MOVED TO INTRODUCE PROPOSED ORDI-
NANCE NO. 627; THE MOTION WAS SECONDED BY HILTON AND
CARRIED UNANIMOUSLY. Public hearing was scheduled for
November 6, 1989.
B. Ordinances for Public Hearing & Enact-
ment:
ORD/P&Z:
Zoning Code
adopted
1. Copies having been made available to
the public, Noll noted by title only a proposed ordi-
nance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 2.30, BOARDS AND COMMIS-
SIONS, AND ADOPTING TITLE 15, PLAN-
NING AND LAND USE REGULATIONS, OF
THE SEWARD CITY CODE.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
Schaefermeyer requested that Council schedule
a second public hearing and postpone action on this
proposed ordinance until November 6. He stated that the
Administration was preparing certain amendments to
present to the Council at that time.
SIMUTIS MOVED TO SCHEDULE A SECOND PUBLIC
HEARING AND POSTPONE ACTION ON THE ORDINANCE UNTIL
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PAGE 225
REGULAR MEETING-OCTOBER 23, 1989 VOLUME 24
NOVEMBER 6; THE MOTION WAS SECONDED BY BURGESS AND CAR-
RIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to RESO/PURCHASING:
the public, Noll noted by title only a proposed resolu- Fire Pumper Truck
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE PURCHASE OF A USED PUMPER
TRUCK FROM THE UNIVERSITY OF ALASKA
FIRE DEPARTMENT SUBJECT TO COUNCIL
APPROVAL OF A LEASE-PURCHASE FINANC-
ING AGREEMENT.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
129; THE MOTION WAS SECONDED BY SIMUTIS.
Schaefermeyer stated that the city had re-
ceived notification from the University of Alaska Fire
Department that it had a 1982 fire truck which was to be
surplussed. Deputy Fire Chief Squires and the city's
senior mechanic travelled to Fairbanks to inspect and
test drive the truck, and they were satisfied that the
equipment would be a good investment for the city.
Schaefermeyer noted that he was requesting authorization
to proceed with an RFP for financing, and purchase of
the truck would not be finalized unless and until the
Council approved a financing package.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
2. Copies having been made available to RESO/LEASE/RE-
the public, Noll noted by title only a proposed resolu- CAC Lease
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
ING A LEASE AGREEMENT TO EXPIRE IN
MAY 1990 WITH CHUGACH ALASKA CORPOR-
ATION FOR A ONE-ACRE PARCEL LOCATED
WITHIN THE SEWARD MARINE INDUSTRIAL
CENTER.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
130; THE MOTION WAS SECONDED BY SIMUTIS.
Schaefermeyer noted that the resolution re-
ferred to a one-acre parcel; however, the city would
probably be leasing approximately 30,000 s.f.
',.,~
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PAGE 226 REGULAR MEETING-OCTOBER 23, 1989
VOLUME 24
BURGESS MOVED TO AMEND THE RESOLUTION TO READ
"ONE ACRE MORE OR LESS"; THE MOTION WAS SECONDED BY
DUNHAM AND CARRIED WITHOUT OBJECTION.
THE QUESTION WAS CALLED ON THE MAIN MOTION AND
THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE.
RESO/ AML: 3. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
Urging KPB support tion entitled:
of AML
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, URGING
THE KENAI PENINSULA BOROUGH TO SUP-
PORT THE ALASKA MUNICIPAL LEAGUE.
SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 89-
134; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
UNANIMOUSLY.
RESO/RAILBELT ENERGY 4. Copies having been made available to
FUND: Ratifying the public, Noll noted by title only a proposed resolu-
Railbelt Coali- tion entitled:
tion Reso. re
distribution of
fund
RESO/CON-
Snowplowing &
sanding contract
approved
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, RATIFY-
ING A RAILBELT COALITION RESOLUTION
SUPPORTING THE DISTRIBUTION OF THE
RAILBELT ENERGY FUND.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
135; THE MOTION WAS SECONDED BY DUNHAM.
Schaefermeyer noted that he and Noll had
attended a meeting of the Railbelt Coalition on Satur-
day. At that meeting, a resolution calling for the
appropriation of $135 Million of the Railbelt Energy
Fund to the Alaska Energy Authority, with $10 Million of
that appropriation earmarked for the transmission line
upgrade into Seward, had been approved. In response to
a question from the Council, Diener stated that the city
estimated the cost of construction of the upgrade to be
approximately $10 Million.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE.
5. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPROV-
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PAGE 227
REGULAR MEETING-OCTOBER 23, 1989 VOLUME 24
ING A CONTRACT TO PROVIDE SNOW PLOW-
ING AND SANDING SERVICES.
SIEMINSKI MOVED TO APPROVE RESOLUTION NO. 89-
128; THE MOTION WAS SECONDED BY SIMUTIS.
Sieminski asked why the city was bidding snow
removal. Diener explained that this was an on-call
contract, principally for Nash Road and prison access,
for emergency snow removal when all available city
manpower and equipment was engaged in removing snow from
downtown streets. Sieminski noted that, in his opinion,
the city should invest in additional equipment and
people to meet this need. Diener noted that a highway-
grade snow plow would cost approximately $100,000, and
it would be difficult to justify the hiring of addition-
al personnel since there was insufficient year-round
work to keep them busy.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FIVE "YES" VOTES AND SIEMINSKI VOTING
"NO".
RECESS:
The meeting was recessed at 8:25 p.m. and
reconvened at 8:32 p.m.
XII.
UNFINISHED BUSINESS:
A. KPB/EDD Appointment. Jerry Lorz was
appointed the city's representative to the Kenai Penin-
sula Borough's Economic Development District Board of
Directors without objection.
XIII.
NEW BUSINESS:
A. Harbor Dinner Club utility billing dis-
pute settlement.
HILTON MOVED TO AUTHORIZE THE CITY MANAGER TO
SETTLE THE HARBOR DINNER CLUB BILLING DISPUTE CLAIM IN
THE AMOUNT OF $ 9, 155.47; THE MOTION WAS SECONDED BY
SIMUTIS.
In response to a question from Burgess,
Schaefermeyer stated that Carl Norman had notified the
city that the city had overbilled the HDC's water and
sewer account over a period of several years. Once the
city verified that there had been an overcharge, Norman
requested a thirty-year adjustment. The city adjusted
for nine months, whereupon Norman appealed to the City
Council through his attorney. Schaefermeyer stated that
since that time, he had negotiated the recommended
settlement with Norman's attorney.
1')'17
IJ IJ '
KPB/EDD: Jerry Lorz
appointed city rep.
UTILITY BILLING
DISPUTE: Harbor
Dinner Club Dispute
Settlement approved
.., I') ("
'j '/"
HOSPITAL:
Loan approved
PAGE 228 REGULAR MEETING-OCTOBER 23, 1989
VOLUME 24
THE QUESTION WAS CALLED AND THE MOTION CARRIED BY
UNANIMOUS VOTE OF THE COUNCIL.
B. $180,000 cash loan to Seward General
Hospital to meet hospital cash flow needs.
Noll noted that during last year's budget
preparations, the Council had allowed for a line of
credit to Seward General Hospital to meet hospital cash
flow needs. Hospital Administrator Campbell stated that
hospital statistics were up over last year due primarily
to the oil spill clean up effort, and the hospital staff
had done very well in keeping up with the medical end of
things. He noted that occupancy had doubled over the
past year, and, as a result, the hospital was carrying
an extremely high accounts receivable. In addition, the
hospital had taken accounting functions back "in house"
beginning July 1 and had, for three plus weeks during
this busy period, contended with auditors. Campbell
stated that it was now apparent that he should have hired
temporary accounting personnel to help with the increased
billing and insurance filings. Campbell also noted that
he had proposed that Exxon compensate for a portion of
the bad debts the hospital was carrying and to fund a
person to assist in insurance filings. He noted that the
loan would be repaid either directly or from additional
revenue sharing which the city receives as a result of
hospital revenues which are used in the state formula.
Schaefermeyer noted that this item had been
placed on the Consent Calendar for information only.
XIV.
CITY MANAGER REPORTS:
Schaefermeyer asked Gates to report on the Fish
Expo and the Alyeska Pipeline Citizens Advisory Commit-
tee.
GATES stated that thousands had attended the
Fish Expo in seattle, and that Seward's name was promin-
ent throughout the exposition. He noted that those
surveyed were eager to see a 250-ton lift in Seward.
SIMUTIS stated that the Expo was much larger
than she had anticipated. She added that she had re-
ceived many positive comments about Seward. In addi-
tion, she visited with the Marketing Director for the
Port of Vancouver to discuss the Alaska cruise ship
industry. She noted that the ships visiting the Port of
Seward come out of Vancouver.
BURGESS suggested that the Chamber of Commerce
should become more involved in Expo. He stated that he
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PAGE 229
REGULAR MEETING-OCTOBER 23, 1989 VOLUME 24
had travelled with Gates and Singleton to view a wave
barrier which might be useful to Seward for Small Boat
Harbor expansion.
GATES stated that Chugach Alaska Corporation
was interested in discussing the possibility that the
city of Seward bond for a deep draft terminal for CAC
barges in return for a full performance, collateralized
lease of the dock. In addition, CAC had asked that the
city consider setting aside a piece of land to the east
of the sawmill for a future wood products facility. He
stated that this would assist CAC in its negotiations
with Korean firms interested in a joint venture opera-
tion.
GATES noted that the Alyeska Citizens Advisory
Committee would sunset on October 31, 1989. He stated
that this interim committee was on its way to achieving
the goals it had set for itself.
GATES noted that his meeting at the Port of
Vancouver had been productive. He stated that Vancouver
would be participating in SeaTrade Expo in Miami,
Florida, in February, and would be holding a "Cruise-a-
thon" meeting of travel agents in April in Vancouver.
Gates suggested that the city begin to join Vancouver in
marketing itself as a cruise ship destination.
SCHAEFERMEYER stated that the cities and
boroughs attending the Railbelt Coalition meeting had
indicated a high regard for Seward, and he had been
gratified by the attitude expressed by our neighbor
municipalities.
xv.
COUNCIL DISCUSSION:
SIEMINSKI asked if the city would be receiving
any of the $250,000 identified for architecture and
engineering in the recently approved bond for street and
sidewalk improvements. Schaefermeyer stated that the
design and engineering money identified in the bond
package would go to independent firms; however, the city
would receive some funds for administrative overhead.
He stated that the city was now developing an applica-
tion to the Bond Bank. Once funds were received, the
city would seek proposals for design and engineering.
DUNHAM stated that she had attended the last
Seattle Fish Expo (1987), and it continued to get bigger
and better. She suggested that now was not too soon to
begin preparing for the 1991 Expo. Dunham also sug-
gested that the city develop some sort of novelty item
to give away at the city booth.
'YYl
( I' )
PAGE 230 REGULAR MEETING-OCTOBER 23, 1989
VOLUME 24
NOLL noted with regret Representative Cato's
resignation from the State Legislature. He stated that
Cato had served the city well and would be missed.
NOLL asked the Clerk to draft a letter to
Chugach Alaska Corporation stating that the city is eager
for CAC's success and investment in the community.
NOLL noted that this was Murphy's last Council
meeting for the next six months.
XVI. CITIZENS' DISCUSSION:
JIM KRASNANSKY, 536 Second Avenue, stated that
the Community Hospital Board had voted to recommend that
the Council amend the City Code to bring hospital em-
ployees under Title 3 of the City Code. (Schaefermeyer
noted that the Board had voted to recommend that the
hospital employees be brought under the collective
bargaining section of Title 3, not the entire Personnel
Code. ) Hospital Administrator Campbell noted that a
memorandum from the Board would be forthcoming.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
XVII.
None
XVIII.
ADJOURNMENT:
The meeting was adjourned at 9:25 p.m.
~
Mayor
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PAGE 231
REGULAR MEETING - NOVEMBER 6, 1989 VOLUME 24
I.
CALL TO ORDER:
The November 6, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Burgess led the pledge of
allegiance to the flag.
III.
ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Dunham, Sieminski and
Simutis (Hilton and Meehan were
excused)
Present also: City Manager Schaefermeyer, City
Attorney Tans, Assistant City
Manager Yanez, Engineering and
utilities Manager Diener, Port
Marketing Director Gates, Fire
Chief Gage, Finance Director
Gifford, Assistant Finance
Director Bagierek, Harbormaster
Singleton, Administrative
Assistant Martin, Building
Inspector Ferguson, Librarian
Nicolas, Police Chief Bencardino
and Acting City Clerk Jones
SPECIAL ITEM:
A. Noll read a Proclamation designating
November 6, 1989, as Herman E. Leirer Appreciation Day
and presented Herman E. Leirer with a plaque honoring him
as an outstanding citizen in the city of Seward.
B.
thanking City
the community
with a gift.
Noll read a certificate of appreciation
Clerk Linda S. Murphy for her service to
and the City of Seward and presented her
IV.
APPROVAL OF MINUTES:
SIMUTIS MOVED TO APPROVE THE OCTOBER 23, 1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
')~l
PROCLANATION:
Herman Leirer
Appreciation Day
PRESENTATION:
L. Nurphy
?')'1
(.,J' I
FIN.SERVICES7RESO:
Bank Acct Sigs~
RESO/WETLANDS:
EASEMENT/JESSE LEE
HEIGHTS SUB:
PAGE 232
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
SIMUTIS MOVED TO APPROVE THE REGULAR MEETING
AGENDA; THE MOTION WAS SECONDED BY DUNHAM.
Schaefermeyer moved item XIII. (B) from New
Business to the Consent Calendar as Item I.
Noll moved Consent Calendar items C. and D.
to New Business as items C. and D.
BURGESS MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND
CARRIED WITHOUT OBJECTION.
AT THE REQUEST OF NOLL, SIMUTIS MOVED TO HOLD
AN EXECUTIVE SESSION FOLLOWING THE REGULAR MEETING TO
DISCUSS GENERAL PERSONNEL AND FINANCIAL MATTERS. THE
MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJEC-
TION.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough President Sewall was
not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
None
VII I .
APPROVAL OF CONSENT CALENDAR:
SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED
UNANIMOUSLY. The following actions were taken:
A. Proposed Resolution No. 89-136, authorizing
signatures for all city bank accounts and rescinding all
previous resolutions in conflict herewith, was approved;
B. Proposed Resolution No. 89-137, in support
of the Southeast Conference resolution relating to Alaska
not being subjected to a blanket national policy for "no
net loss" of wetlands, was approved;
C. Moved to the Regular Meeting Agenda;
D. Moved to the Regular Meeting Agenda;
E. Request for Council con3ent to the easement
VACATION of Lots 14 and 15, Block 2, Jesse Lee Heights
Subdivision, was approved;
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PAGE 233
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
F. Change Order No. 1 to the Swenson Construc-
tion Company contract for the security and storage
building at SMIC, increasing the contract price by
$4,580.00 in order to eliminate electric heating, install
a transfer switch and install an alarm system, was ap-
proved;
G. November 1, 1989, memorandum from Engineer-
ing & utilities Manager Diener recommending a one year
contract extension with Marathon Fuel Corporation to
provide petroleum products to the city was approved;
H. Proclamation of the Mayor designating
November 6, 1989, as Herman Leirer Appreciation Day was
noted fqr information;
I. Letter from Hospital Board Chairman
Lamberson regarding the hospital employees' petition for
engaging in collective bargaining was noted for informa-
tion.
IX.
PUBLIC HEARINGS:
None
X.
PRESENTATIONS WITH PRIOR NOTICE:
None
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None
B. Ordinances for Public Hearing & Enactment:
1. Copies having been made available to
the public, Noll noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AMENDING
CHAPTER 2.30, BOARDS AND COMMIS-
SIONS, AND ADOPTING TITLE 15, PLAN-
NING AND LAND USE REGULATIONS, OF
THE SEWARD CITY CODE.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened; no one appeared in order to be heard
and the public hearing was closed.
?,~~
CON-
CON-
PROCLANATION:
ORDINANCE/P&Z:
(Adopting Zoning
Code)
?,~4
ORD/FIRE DEPT/
SNIC: (Ordinance
requiring Auto.
Fire Sprinklers
at SNIC - Action
Postponed)
PAGE 234
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
Schaefermeyer stated that the appeals section
of the proposed ordinance had been amended. Once the
ordinance was enacted by the City Council, the Kenai
Peninsula Borough Assembly would propose and enact an
ordinance which would trans fer zoning powers to the city.
SIMUTIS MOVED TO ENACT ORDINANCE NO. 626; THE
MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY.
2. Copies having been made available to the public, Noll
noted by title only a proposed ordinance entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER 9.15 OF THE SEWARD CITY
CODE, FIRE PREVENTION.
Notice of public hearing as posted and pub-
lished as required by law was noted and the public
hearing was opened;
JIM PRUITT, Forest Acres, voiced his objection
to the proposed requirement for automatic sprinkler
systems for structures in the SMIC area. He stated that
he had met with the State Fire Marshal and had designed
a suitable building for his property. The design did
not include a sprinkler system but included fire-proof-
ing for the structure. He mentioned that since the
building would be 100 feet high and open at the end, the
sprinkler system would not be effective in case of a
fire. He noted that the state already had certain
restrictions and he saw no need for the city to impose
more regulations.
SCOTT EARSLEY, Inlet Salmon, spoke against
enactment of the proposed ordinance. He noted that
individual buildings should be inspected by the local
Fire Chief and the Building Inspector according to the
Uniform Building Code on a case by case basis. He
stated that it would cost approximately $30,000 to
sprinkle the proposed building at the Inlet Salmon dock.
He noted that the building would not be heated in the
winter so it would need to have a dry charge system
installed.
AL SCHAFER, Afognak Logging; Mile 2.5, Nash
Road stated that he opposed this proposed ordinance
noting that it would be difficult to comply since there
were no utilities and the water pressure was low where
he was located. He stated that it would pose a hardship
on most businesses at SMIC if the ordinance should be
approved.
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PAGE 235
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
No one else appeared in order to be heard and
the public hearing was closed.
SIMUTIS MOVED TO ENACT ORDINANCE NO. 627; THE
MOTION WAS SECONDED BY DUNHAM.
Schaefermeyer stated that the purpose of this
ordinance was to prevent the spread of fire to an entire
building and to contain property loss as well as saving
lives. He said that due to the long response time to the
Seward Marine Industrial Center by the Fire Department,
it was a life safety issue. He noted that a fire could
create an unsound structure which would then become a
safety factor for the firefighters. He requested that
action be postponed on the ordinance so the administra-
tion could work on a variance to allow the flexibility
of reviewing each case individually.
SIMUTIS MOVED TO POSTPONE ENACTMENT OF OR-
DINANCE NO. 627 UNTIL NOVEMBER 27; THE MOTION WAS SECON-
DED BY BURGESS AND CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPRO-
PRIATING FUNDS TO THE FINANCE DE-
PARTMENT TO ESTABLISH AN ACCOUNTING
CLERK POSITION.
SIMUTIS MOVED TO APPROVE RESOLUTION NO. 89-
138; THE MOTION WAS SECONDED BY BURGESS.
Schaefermeyer stated that the finance depart-
ment was in need of an additional staff person in order
to fully carry out the responsibilities of that depart-
ment. He reported that the City managed a large budget
in excess of $15 million dollars which includes multiple
enterprise funds. He noted that accounts receivables,
payables and collections could be completed in a more
timely manner if the department had an extra staff
member. He stated that the department was behind due to
the fact that there was not time to complete all the
duties, including financial reports, in a timely manner
with the size of the current staff. He reported that he
expected revenues to increase once the department was
operating at full capacity.
rl ~...}-
<l'lt!
RESO/FINANCE/PER-
SONNEL: CApprop.
funds for new
Acctg. Clerk Posi-
tion)
?~h
."
PAGE 236
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
Burgess agreed stating that he has had trouble
receiving payments on a timely basis. He stated that
the city needed to pay its bills on time.
Simutis stated that the city had acquired a
new computer system which was supposed to streamline the
workload and save on labor costs. She noted that the
conception of needing less staff was not necessarily
true. with the increased demand for timely financial
reports, she stated that she supported the need for an
additional position noting that the department had been
behind for a long time. She noted that the positions
were not cross-trained and an extra position would allow
more flexibility within the department.
In answer to a question from Sieminski, Gif-
ford stated that two positions primarily handled utili-
ties which includes monthly billings, accounts receiv-
ables, utility collections and harbor collections. He
stated that two to three people were needed to handle
the accounting associated with the utilities.
Dunham asked if the cashier was still respon-
sible for answering the telephones. Gifford stated that
the Finance Department and the Clerk's Department were
sharing the responsibility until the remodeling of the
front lobby was completed. The new receptionist posi-
tion in the Clerk's Department would then be responsible
for the telephones.
Noll stated that since the hospital accounts
had been transferred to the hospital in the past year,
the Finance Department was no longer required to handle
that account. Gifford replied that the workload was
transferred but the city was still responsible for
overseeing the account. In answer to a question from
Noll, Gifford stated that the department was without an
assistant finance director for some time, but a tem-
porary accountant had been hired to assist with certain
projects and the audit. He stated that the department
was fully staffed at this time and the temporary accoun-
tant had left two weeks ago when the audit was com-
pleted.
Noll asked when the budget variance reports
would be available. Schaefermeyer stated that he would
try to have them ready for the City Council to review at
the November 27th meeting. Noll asked how soon the
Council could expect a report on revenue projections.
Gifford stated that a good projection was possible after
the first quarter but the picture would be better after
six months into the fiscal year.
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PAGE 237
REGULAR MEETING ~ NOVEMBER 6. 1989 VOLUME 24
In answer to a question from Noll on the FY
1991 budget, Schaefermeyer reported that worksheets are
distributed to department heads during the first part of
the year. Each department is responsible for preparing
a draft budget which is then submitted to the finance
director and reviewed by the city manager. A draft
budget is available about mid-April for review by the
Council. He stated that the process takes about five
months.
In answer to a question from Noll, Schaefer-
meyer stated that the proposed accounting clerk position
would be a permanent position.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED WITH FOUR "YES" VOTES AND NOLL VOTING "NO".
XII. UNFINISHED BUSINESS:
None
XIII.
NEW BUSINESS:
Members.
A. A-ppointment of Communitv Hospital Board
BURGESS MOVED TO APPOINT DEBRA CALDERA, AL
LAMBERSON AND ANN WRIGHT TO 3-YEAR TERMS AND SHARON JEAN
TO A 1-YEAR TERM TO SERVE ON THE COMMUNITY HOSPITAL
BOARD. THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED
WITHOUT OBJECTION.
B. Moved to Consent Calendar
C. Invoice from Perkins Coie for leqal ser-
vices for Auqust. 1989. in the amount of 538.708.98.
SIMUTIS MOVED TO APPROVE PAYMENT OF THE IN-
VOICE FROM PERKINS COlE FOR AUGUST, 1989. THE MOTION
WAS SECONDED BY DUNHAM.
Burgess stated that he had discussed with
Schaefermeyer which items were included in the "general
government" category of the attorney billings. Until he
could review the billings further, he had no other
questions.
Noll requested that the administration prepare
a line item accounting by subject matter of the invoices
for the past twelve months for the Council's review. He
also asked for inclusion of those items which were
reimbursable such as insurance or oil spill expenses.
2~7
HOSPITAL BOARD:
(Caldera, Lamberson
& Wright apptd. to
Board)
C.ATTY: (Invoices
for legal service)
?~~
PAGE 238
REGULAR MEETING - NOVEMBER 6, 1989 VOLUME 24
Dunham stated that she would like to see the
invoices brought current noting that they are still two
months behind. She stated that even if the insurance
companies reimbursed the city, the city pays in the end
with higher insurance rates. She reported that she was
receiving public complaints about the high legal fees
the city was paying.
THE QUESTION WAS CALLED AND THE MOTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
XIV. CITY MANAGER REPORTS:
SCHAEFERMEYER stated that KPB Mayor Gilman
requested a list of capital priorities that the City is
seeking funding for from the legislature. He noted that
he would present the list to the Council at its next
meeting. He requested that Council discuss capital
priorities for FY91 at a work session scheduled for
November 20, 1989, at 12:00 noon.
GATES reported that he had received an un-
solicited proposal for purchase of the city's grain
terminal components by Price-Chen International for
$400,000. He stated that the city would likely seek
requests for proposals to see if anyone else might be
interested. He stated that he would report back to the
council at the next meeting.
GATES stated that the Alyeska Citizen's
Advisory Committee had been extended. The purpose of
this group was to oversee the oil industry and agencies
regulating tanker operations until the oil no longer
flows through the pipeline. A House Bill was passed
which includes Alaska citizens on this committee.
GATES also mentioned that he would be attending
the International Trade Association Conference in
Japan/Korea along with Senators Szymanski, Uehling, KPB
Mayor Gilman, Assemblyman Sewall and other representa-
tives at the end of November to follow up on work done
last March at the Korean Trade Fair.
XV.
COUNCIL DISCUSSION:
SIEMINSKI asked about combining city office
space into one building. Schaefermeyer stated that the
Legislature transferred the city hall building to the
City with the requirement that 41% of the office space
would be utilized by State agencies. He noted that the
Court System hoped to relocate some day, possibly to a
new Public Safety building which could include the court,
local police department and State Troopers. He stated
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PAGE 239
REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
that Yanez was analyzing space needs for the city and a
plan for long term space would be developed and con-
sidered during the capital budget planning process.
DUNHAM encouraged the administration to write
a letter of support to the governor requesting the
appointment of a Seward citizen to the House seat vacated
by Representative Cato. She also voiced concern over
spruce beetle diseased trees north of Seward stating that
left unattended, a huge forest fire could break out
during the dry season and threaten life and property on
the Peninsula, including Seward.
SIMUTIS congratulated Fire Chief Gage and
staff, the Emergency Medical Services team and hospital
employees on a job well done in response to the fire at
the Breeze Inn. She stated that the building did have
a sprinkler system which had an effect on controlling the
spread of the fire.
NOLL stated that he would be attending the AML
Conference in Juneau along with Councilmembers Burgess,
Meehan and Sieminski. He relayed that he had spoken to
Senators Kelly and Sturgulewski regarding funding of the
115KV transmission line and their response was very
positive. He asked the administration to bear in mind
the needs of the IMS program during the capital planning
process. In response to Dunham's concern about the
beetle kill spruce trees and possible fire, Noll re-
quested that the administration investigate and schedule
a work session at a later date to discuss provisions for
an emergency plan.
XVI.
CITIZENS' DISCUSSION:
PAT O'BRIEN, 209 Ravina, spoke in response to
the sale of the grain terminal components. He stated
that the Council should consider the unsolicited offer
that was presented by Price Chen International for
purchase of the equipment before going out for proposals.
He noted that it seemed unethical to him to go out for
proposals when a good faith offer had been presented to
the city.
HERMAN LEIRER, Dairy Hill, agreed with Dunham
about the spruce beetle diseased trees stating that a
large forest fire in 1958 spread rapidly and if the wind
had not died down then, Seward could have been devastated
wi thin a short period of time. He encouraged the
community to be aware of the danger posed by the diseased
trees.
?,t,(l
PAGE 240 REGULAR MEETING - NOVEMBER 6. 1989 VOLUME 24
XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
SCHAEFERMEYER responded to O'Brien's comments
stating that the City had concerns related to the
disposal of the grain terminal components and would be
communicating its intentions to the state. He stated
that a partner was also involved in the process of the
disposal and his input would be considered.
DUNHAM reiterated that Seward has a long
history of natural disasters and suggested that we be
prepared for a fire.
NOLL stated that the City should consider the
value of the grain terminal components and find out what
the market is for that product.
XVIII.
ADJOURNMENT:
The meeting was adjourned at 9:23 p.m.
-V~.J.~~~O~
patricia J. Jones ~am C. Noll
Actin lerk Mayor
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241
PAGE 241 REGULAR MEETING - NOVEMBER 27, 1989 VOLUME 24
I.
CALL TO ORDER:
The November 27, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Meehan led the pledge of alle-
giance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Dunham, Hilton, Meehan,
Sieminski and Simutis
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager Yanez, Engineering
and Utilities Manager Diener,
Administrative Assistant Martin,
Port Marketing Director Gates,
Fire Chief Gage, Finance
Director Gifford, Assistant
Finance Director Bagierek,
Librarian Nicolas, Police Chief
Bencardino. Hospital, Admin-
istrator Campbell and Acting
City Clerk J0ges
IV.
APPROVAL OF MINUTES:
HILTON MOVED TO APPROVE THE NOVEMBER 6,'1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS
AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
HILTON MOVED TO HOLD AN EXECUTIVE SESSION
IMMEDIATELY FOLLOWING THE REGULAR MEETING TO DISCUSS
LITIGATION AND PERSONNEL MATTERS. THE MOTION WAS
SECONDED BY SIEMINSKI AND CARRIED WITHOUT OBJECTION.
MEEHAN MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai Peninsula Borough Assemblyman Sewall was
not present and no report was given.
24?
CITIZENS CONNENTS:
(B.Valdatta)
RESO/RISK MGNT:
(Loss Control
Po licy)
RESO/RISK NGNT:
(SB229-Limiting
govt. liability
for injury)
RESO/RISK NGNT:
(SE228-Li1l1iting,
govt liABILITY
G.ATTY:
ELECTIONS: (API' t g.
SpEcial Eleciton
Boards)
PAGE 242 REGULAR MEETING - NOVEMBER 27, 1989 VOLUME 24
VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
A. Bob Valdatta, 528 5th Avenue, spoke in
support of building a Seaman's Center stating that the
day room at SLAC had not been available to the public for
some time. He stated that Seward needed a community
center to keep people off the street. He also encouraged
citizens to vote at the December 5, 1989, special
election. Noll thanked him for his comments.
VIII .
APPROVAL OF CONSENT CALENDAR:
SIEMINSKI requested that Item "B" be moved to
the regular meeting agenda as Item No. "XI(C)(8)"; Items
"E" and "G" be combined and moved to the regular meeting
agenda as Item No. "XIII(C)"; Items "J" and "K" be moved
to the regular meeting agenda as Item "XIV(D)"; and Item
"P" be moved to the regular meeting agenda as Item
"XIII(D) "
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR
AS AMENDED; THE MOTION WAS SECONDED BY SIEMINSKI AND
CARRIED UNANIMOUSLY. The following actions were taken:
A. Proposed Resolution No. 89-139, offering
an accident prevention/loss control policy for the City
of Seward, was approved;
B. Moved to Regular Meeting Agenda;
C. Proposed Resolution No. 89-150, urging the
legislature to adopt Senate Bill 229, an act relating to
government liability for damage or injury resulting from
hazardous recreational activities, was approved;
D. Proposed Resolution No. 89-151, urging the
legislature to adopt Senate Bill 228, an act relating to
civil liability of certain volunteers, was approved;
E. Moved to Regular Meeting Agenda;
F. Invoice from Brittain, Mersereau &
Pentlarge for legal services for September, 1989, in the
amount of $21.10, was approved for payment;
G. Moved to Regular Meeting Agenda;
H. November 24, 1989, memorandum from Acting
City Clerk Jones requesting appointment of election board
members for the December 5, 1989, special election, was
approved;
I
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PAGE 243 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
I. November 24, 1989, memorandum from Acting
City Clerk Jones requesting renewal of a one-year
contract with the Seward Phoenix Loq for display adver-
tising was approved;
J. Moved to Regular Meeting Agenda;
K. Moved to Regular Meeting Agenda;
L. ABCB notification of application for
renewal of liquor license as filed by Seward Trading
Company was approved without objection;
M. November 21, 1989, memorandum from Finance
Director Gifford listing purchase orders totalling
between $5,000 to $10,000 issued by the city in October,
1989, was noted for information;
N. November 24, 1989, memorandum from Acting
City Clerk Jones recommending the cancellation of the
December 25, 1989, council meeting was approved;
O. Report from Finance Director Gifford
relating to travel for computer training classes by a
finance department employee was noted for information;
P. Moved to Regular Meeting Agenda
IX.
PUBLIC HEARINGS:
A. Notice of public hearing as posted and
published as required by law regarding the proposed one
year LEASE and DOCK LICENSE AGREEMENT with the Alaska
Marine Highway System for lease of the "old depot"
building at 501 Railway Avenue and for the preferential
docking use of the Fourth Avenue dock by the M/V TUS-
TUMENA was noted, and the public hearing was opened; no
one appeared in order to be heard and the public hearing
was closed.
x.
PRESENTATIONS WITH PRIOR NOTICE:
A. ANDY PATAPOFF, Mile. 3, Exit Glacier Road,
presented the list of capital improvement project
priorities approved by the Seward Chamber of Commerce for
the upcoming legislative session. He stated that the
top priorities included a cruise ship dock, a south
addition to the small boat harbor, bike trails to the
schools, curbs and sidewalks throughout town, transmis-
sion line upgrade, and a new hospital. Meehan thanked
him for his presentation.
B. BOB VALDATTA, 528 5th Avenue, spoke about
the cost overruns of the police department and the
?43
ABCB: (Seward
Trading)
C.COUNCIL (C~pcel
meeting)
PUBLIC HEARING:
(Fe rry -r:;;:;;;)-
~
CIT.DISCDSSION:
(A.Patapoff)
CIT. DIS\;USSION:
(B.Vald2tta)
?LtL1
L.I . .
RESO/SGH/LOANS:
($200,OCO Loan
for Ho~,p. Oper-
ations)
PAGE 244 REGULAR MEETING - NOVEMBER 27, 1989 VOLUME 24
hospital due to the oil spill. He stated that the
taxpayers should not have to pick up the tab through
State grants awarded for these needs but Exxon should pay
for it.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
None.
B. Ordinances for Public Hearing & Enactment:
1. Copies having been made available to
the public, Noll noted by title only a proposed ordinance
entitled:
AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, REVISING
CHAPTER, 9.15 OF THE SEWARD CITY
CODE, FIRE PREVENTION.
Noll noted that a motion was on the floor to
enact proposed Ordinance 627.
Schaefermeyer recommended that the City Coun-
cil postpone this ordinance indefinitely. He stated
that the administration would be proposing a new or-
dinance at the next meeting which would provide for an
appeals process for the consideration of appeals brought
from the decisions of the fire chief or building offi-
cial. He noted that the Fire Chief has the authority to
require sprinkler systems on a case by case basis.
BURGESS MOVED TO POSTPONE ORDINANCE NO. 627
INDEFINITELY, THE MOTION WAS SECONDED BY DUNHAM AND
CARRIED UNANIMOUSLY.
C. Resolutions:
1. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE CITY TO BORROW $200,000 FOR
THE PURPOSE OF FUNDING HOSPITAL
OPERATIONS IN ANTICIPATION OF COL-
LECTING ACCOUNTS RECEIVABLE AND
AUTHORIZING THE ISSUANCE OF A REVEN-
UE ANTICIPATION NOTE.
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PAGE 245 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
Schaefermeyer stated that the city was seeking
interest free funds from Veco, Inc. as provided by the
Charter on behalf of Seward General Hospital. These
funds would be used to repay the city for monies which
the hospital had previously borrowed to meet cash flow
needs. The entire amount of the loan from Veco, Inc.
would become due and payable no later than June 30, 1990,
with a monthly payment being made beginning in January.
The funds to repay the loan would be generated from
receipt of the outstanding accounts receivable at Seward
General Hospital.
Dunham voiced objection to obtaining the loan
from Veco.
Burgess questioned how the loan would help the
city. Noll replied that the hospital would be saving
the interest it was currently paying the city which in
turn would be saving taxpayers dollars.
Meehan stated that the city should feel no
obligation towards Veco, Inc. in return for use of the
interest free money.
Hilton noted that it made good business sense
to utilize interest free funds.
Noll stated that Veco, Inc. had earned enough
money this past summer to pay a small amount to help the
city with the hospital's debt.
MEEHAN MOVED TO APPROVE RESOLUTION 89-141, THE
MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED
AND THE MOTION CARRIED WITH FIVE "YES" VOTES AND DUNHAM
VOTING "NO".
2. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE EXECUTION OF AN EQUIPMENT
LEASE/PURCHASE AGREEMENT BY AND
BETWEEN THE CITY AND SECURITY PACI-
FIC BANK ALASKA, N.A., AND PROVIDING
FOR RELATED MATTERS.
Schaefermeyer stated that the council had
approved acquisition of an additional fire truck contin-
gent upon approval of a lease. He also noted that the
hospital board had requested the acquisition of a neo-
natal care unit and lab equipment for the hospital. He
stated that three proposals had been received for finan-
245
RE so /Pl'RCHAS ING:
(Fire Truck)
~4fi
RESO/PURCHASING:
(Supplies for
new fire truck)
RESO/PURCHASING:
(Hasp. Equipment)
PAGE 246 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
cing and Security Pacific Bank had provided the best
terms.
Meehan asked why the University of Alaska was
selling the fire truck. Gage replied that it was not
suitable for hilly terrain since it was a two wheel drive
vehicle. It was used in the summer only and U of A had
no place to store it in the winter.
HILTON MOVED TO APPROVE RESOLUTION 89-144; THE
MOTION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS
VOTE OF THE COUNCIL.
3. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE PURCHASE OF SUPPLIES AND
EQUIPMENT FOR THE FIRE TRUCK FROM
THE UNIVERSITY OF ALASKA WITHOUT
FULL UTILIZATION OF CITY BID PROCE-
DURES.
Schaefermeyer stated that additional equipment
and supplies were needed for the fire truck. Since the
request for funds exceeded $10,000, council approval was
needed.
In answer to a question from Sieminski about
waiting until the next fiscal year, Gage replied that
the truck would be delivered at the end of 1989, and the
equipment was needed to make it serviceable by the end
of February.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
145; THE MOTION WAS SECONDED BY BURGESS AND CARRIED
UNANIMOUSLY.
4. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE PURCHASE OF CERTAIN HOSPI-
TAL EQUIPMENT.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
146; THE MOTION WAS SECONDED BY SIEMINSKI.
Hospital Administrator Campbell stated that
the neo-natal care center and lab equipment was part of
I
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247
PAGE 247 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
the hospital's equipment priority list. He stated that
the lab equipment was replacing old equipment and the
neo-natal care unit was for the OB section.
THE QUESTION WAS CALLED AND THE RESOLUTION WAS
APPROVED BY UNANIMOUS VOTE OF THE COUNCIL.
RECESS: The meeting was recessed at 8:20 p.m. and
reconvened at 8:37 p.m.
Noll commented that it was good to have City
Attorney Arvidson back after his illness.
5. Copies having been made available to the RESO/CIP: (1991)
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ADOPTING
THE FISCAL YEAR 1991 CAPITAL IM-
PROVEMENT PROJECTS PRIORITY LIST FOR
THE 1990 LEGISLATIVE SESSION.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
147; THE MOTION WAS SECONDED BY MEEHAN.
Schaefermeyer stated that it was time to adopt
the annual capital priorities list for the upcoming
legislative session. He noted that the hospital and the
115KV transmission line were the two number one priorit-
ies of the city. He stated that the Lowell Canyon
Bridge needed to be widened and placed further away from
the outfall. He stated that before the city could
provide bike trails near the school, easements and
right-of-ways needed to be obtained from property own-
ers, and the city was pursuing this. He thanked the
Chamber of Commerce for submitting their priority list.
Noll noted for the record a letter received
from the Wesleyan Nursing home requesting reinstatement
of the institution on the city's priority list. He
stated that the project had been communicated to the
governor in the past. He noted that it could be in-
cluded along with the hospital in a "health care pack-
age" being put together to present to the legislature or
it could be presented in the cover letter to the gover-
nor.
Hilton stated that the bike trail project was
worthwhile and encouraged the Chamber to mobilize fund
raising efforts for the trails.
Noll suggested that a joint work session
should be held with the Wesleyan Nursing Home, Seward
?,1$'
RESO/GRAIN TERMINAL:
(Authorizing sale)
PAGE 248 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
General Hospital and the City Council.
THE QUESTION WAS CALLED AND RESOLUTION NO. 89-
147 WAS APPROVED BY UNANIMOUS CONSENT OF THE COUNCIL.
6. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE CITY MANAGER TO ENTER INTO
AN AGREEMENT FOR THE DISPOSAL OF
CITY-OWNED GRAIN TERMINAL COM-
PONENTS.
HILTON MOVED TO APPROVE RESOLUTION NO. 89-
148; THE MOTION WAS SECONDED BY BURGESS.
Noll ruled that Meehan would abstain on this
issue due to a conflict of interest.
Schaefermeyer stated that a price had been
negotiated with Price-Chen International for purchase of
the grain terminal components from the City of Seward
and Kobuk, Inc. for $425,000 with a $10,000 advance to
be paid contingent upon an engineering inspection to
determine the completeness of the inventory list. He
stated that the grain terminal was sold on an "as is,
where is" basis with no guarantee. He noted that repre-
sentatives would be in Seward late in the week to anal-
yze shipping costs and then a contract would be drawn
up.
Hil ton was concerned about the state's res-
ponse to disposing of the components. Schaefermeyer
stated that he had received a favorable response from
the state stating that the city was authorized to dis-
pose of the grain terminal components.
Noll stated that a letter of credit with terms
and conditions specified could suffice as a contract and
requested the administration to investigate the pos-
sibility. He also stated that he had not heard any
objections to the disposal while he was in Juneau.
HILTON MOVED TO AMEND RESOLUTION NO. 89-148 TO
ADD "AND CONCLUDE" AFTER "NEGOTIATE" IN SECTION 2. THE
MOTION WAS SECONDED BY DUNHAM. THE AMENDMENT WAS AP-
PROVED WITHOUT OBJECTION BY THE COUNCIL. THE QUESTION
WAS CALLED ON THE MAIN MOTION AND THE MOTION CARRIED
WITH FIVE "YES" VOTES AND MEEHAN ABSTAINING.
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PAGE 249 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
7. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, PROVID-
ING FOR LEASE OF THE "OLD DEPOT"
BUILDING AND PREFERENTIAL USE OF THE
FOURTH AVENUE DOCK BY THE STATE OF
ALASKA MARINE HIGHWAY SYSTEM.
Schaefermeyer noted that this was a re-author-
ization of an annual lease for use of the ferry dock and
terminal for the M/V TUSTUMENA.
Sieminski proposed that the cost of the lease
should be increased for Fiscal Year 1991.
Hilton stated that it should be renewed as is.
It was not worth the risk of losing homeport status of
the TUSTUMENA for a few extra dollars. Dunham concurred
stating that fifty jobs would be at risk if we lost the
"homeport".
Noll asked the administration to investigate
what other "homeport" communities were charging for the
ferries before doing anything to increase the rates.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
149, THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITH
FIVE "YES" VOTES AND SIEMINSKI VOTING "NO".
8. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AUTHORI-
ZING THE PURCHASE OF SUPPLIES AND
EQUIPMENT FOR THE FIRE DEPARTMENT
WITHOUT FULL UTILIZATION OF CITY BID
PROCEDURES.
Sieminski requested that Fire Chief Gage
explain what the purchase was for. Gage replied that
the fire department needed a hose washer/dryer and other
basic fire-fighting supplies such as gloves, uniforms,
shields, etc. He stated that these items were budgeted
but since the cost exceeded $10,000, council approval
was needed.
BURGESS MOVED TO APPROVE RESOLUTION NO. 89-
140; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED
UNANIMOUSLY.
~~49
RESO/RE-
/LEASE:
(Ferry Lease)
RESO/PURCHASING:
(Supplies & Equip.
for Fire Dept.)
2S0
TRADE BOARD: (Ge,edwill
& Woodruff Apptd)
PORT COMl1ITTEE:
(S.And€rson APetd)
C. ATTY: (Invoice
for services)
PAGE 250 REGULAR MEETING - NOVEMBER 27. 1989 VOLUME 24
XII. UNFINISHED BUSINESS:
None.
XIII.
NEW BUSINESS:
A. Appointment of Trade Board Members.
BURGESS MOVED TO CONFIRM THE MAYOR'S APPOINT-
MENT OF JACK GOODWILL AND JOHN WOODRUFF TO THE TRADE
BOARD FOR 3-YEAR TERMS TO EXPIRE NOVEMBER, 1992. THE
MOTION WAS SECONDED BY SIEMINSKI AND CARRIED BY UN-
ANIMOUS VOTE OF THE COUNCIL.
B.
Appointment of Port Development Committee
member.
Noll stated that Tim Moffatt had resigned from
the Port Development Committee. Of the applications on
file, Sharon Anderson was selected to fill the vacancy.
BURGESS MOVED TO CONFIRM THE MAYOR'S APPOINT-
MENT OF SHARON ANDERSON TO THE SEWARD PORT DEVELOPMENT
COMMITTEE. THE MOTION WAS SECONDED BY MEEHAN AND CAR-
RIED UNANIMOUSLY.
C. 1. Invoice from Perkins Coie for leqal
services for September. 1989. in the amount of $21.572.-
40.
In response to a question about the delay
in the billings, Arvidson stated that the bills would
usually arrive on a thirty day delay basis. He noted
that they were caught up now so billings should arrive
in a timely manner.
THE COUNCIL REQUESTED THE CLERK TO IN-
CLUDE DETAILED INVOICES FROM PERKINS COlE IN FUTURE
COUNCIL PACKETS.
Arvidson stated that all routine or
special projects were authorized by the city manager
before any work was done by the attorney.
The Council requested that the ad-
ministration provide a detailed list of cost summaries
and reimbursable items.
DUNHAM MOVED TO APPROVE PAYMENT TO PERKINS
COlE FOR LEGAL SERVICES FOR SEPTEMBER, 1989, IN THE
AMOUNT OF $21,572 .40. THE MOTION WAS SECONDED BY
SIEMINSKI AND CARRIED UNANIMOUSLY.
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PAGE 1 REGULAR MEETING - NOVEMBER 27, 1989
VOLUME 25
2. Report from City Attornev Fred Arvid-
son reqardinq leqal costs to the citv.
Arvidson reported that overall, legal
costs to the city have declined since FY86. Hilton and
Meehan thanked Arvidson for his detailed report.
D. Ouarterlv Financial reoort for Seward
General Hospital as filed by Hosoital Administrator Keith
Campbell.
Campbell and Financial Consultant Mastascusas
provided a report on the financial status of the hospi-
tal from July, 1989 through October, 1989.
Schaefermeyer stated that Exxon had agreed to
reimburse the hospital for two temporary positions in
the accounting office to help with accounts receivable
billings. The State had also provided a grant to the
hospital for the positions but since the funding was
provided through Exxon, the grants would not be forth-
coming.
Campbell stated that the hospital and the city
needed to settle the sales tax appropriations for FY89
year end. He questioned whether the sales tax "true-
up" should be conducted on a quarterly or an annual
basis. Schaefermeyer recommended implementing a formal
amendment process.
Hilton stated that he would prefer a quarterly
"true-up" and Meehan concul:red.
Campbell stated that he would be bringing a
hospital budget revision to the City Council in the near
future.
MEEHAN MOVED TO ACCEPT THE QUARTERLY FINANCIAL
REPORT OF SEWARD GENERAL HOSPITAL; THE MOTION WAS SECON-
DED BY DUNHAM AND CARRIED UNANIMOUSLY.
RECESS: The meeting was recessed at 10:55 p.m. and
reconvened at 11:05 p.m.
XIV.
CITY MANAGER REPORTS:
ment.
A. Protective Custody Plan and Mutual Aqree-
Schaefermeyer stated that SLAC, Seward General
Hospital and the City of Seward had joined forces to
implement a protective custody plan. He noted that it
would be ready for review at the December 11, 1989,
council meeting.
\Ji~
C.ATTY: (Report to
Council re fees)
SGH: (Quarterly
financial report)
2
PAGE 2 REGULAR MEETING - NOVEMBER 27. 1989
VOLUME 25
B. Personnel policies related to drug and
alcohol abuse.
Schaefermeyer reported that Assistant City
Manager Yanez had put together a draft policy relating
to drug and alcohol use/abuse by city employees. He
stated that the draft would be distributed to employees
and encouraged the council and employees to contribute
their ideas and thoughts on the subject.
Yanez stated that the federal government had
implemented a Drug Free Act and if employers adopted a
drug and alcohol policy, it would be possible to obtain
grants from the federal or state government related to
drugs and alcohol. He reported that he had done exten-
sive research with department heads on this subject and
the main focus of the city was to encourage employees to
stay drug free, but if they had a problem, to accept help
without jeopardizing their position with the city.
Hilton agreed that there was a need for a drug
and alcohol policy but he stated that the draft needs to
be thoroughly looked at before a final decision is made.
Burgess concurred stating he was concerned about the
section regarding prescription drugs.
In answer to a question from Sieminski about
how this policy would affect union employees, Schaefer-
meyer stated that the policy would have to be included
in the bargaining agreement before it would be effec-
tive. He noted that only city employees would be af-
fected by the policy, not hospital employees.
Dunham suggested that the council hold a work
session on the subject. She agreed with Hilton that it
needed to be looked at closely. The council agreed to
hold a work session after the holidays to discuss the
drug and alcohol policy.
C. Quarterly Financial Statements.
Schaefermeyer stated that due to the ongoing
computer conversion, the financial statements would be
presented to the Council at the December 11, 1989,
meeting.
D. 1. November 20, 1989, memorandum from
Enqineering and Utilities Manager Diener establishing
the electrical load shedding plan.
Diener stated that the electrical load
shedding plan would be implemented if the city could not
provide enough generation during heavy use of electri-
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/'"I
..:-
PAGE 3 REGULAR MEETING - NOVEMBER 27, 1989
VOLUME 25
city. He noted that the prison would utilize their own
generators if needed. He stated that the city had a
contract with Suneel to shut off power to them if it
became necessary.
2. November 9, 1989, memorandum from
Engineering and Utilities Manaqer Diener regarding the
Alaska Enerqy Authority Board's September 7, 1989.
minutes.
Diener stated this memo was to update the
progress of the Bradley Lake Hydroelectric Project.
Schaefermeyer thanked a number of individuals
and businesses for their contributions towards the
Christmas lights for the downtown area. He stated that
he would be attending the RDC annual conference on
November 29 and 30. He also mentioned that Gates was in
Japan working on enterprise development projects.
xv.
COUNCIL DISCUSSION:
SIEMINSKI stated that he would like to see a
committee formed to review applicants for committees.
He stated he would like to discuss the attorney bills
with Arvidson at a later date. He also requested that
the administration research the agreement between the
city and the state regarding city hall.
DUNHAM stated that she would be out of town
during the next meeting.
MEEHAN welcomed Fred Arvidson back. He noted
that the right decision had been made to dispose of the
grain terminal components.
NOLL stated that there was a public meeting on
December 4, 1989, at the high school to discuss drug and
alcohol abuse. He stated that Herman Leirer had surgery
and was doing well. He requested that the administra-
tion meet with a committee of experts on the spruce tree
beetle infestation and schedule a work session with the
council.
XVI.
CITIZENS' DISCUSSION:
MOFFATT stated that there would be a meeting
on December 8, 1989, at 7:00 p.m. in the Council Cham-
bers to form a group to organize a Seaman's Center.
XVII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
4
PAGE 4
REGULAR MEETING - NOVEMBER 2
- 7. 1989
VOLUME 25
XVIII.
ADJOURNMENT:
The meeting was d'
a Journed at 11:58 p.m.
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MEETING - DECEMBER ll, 1989 VOLUME 25
CALL TO ORDER:
The December ll, 1989, regular meeting of the
Seward City Council was called to order at 7:30 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Sieminski led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Hilton, Meehan and
Sieminski (Dunham and Simutis
were excused)
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Assistant
City Manager Yanez, Engineering
and Utilities Manager Diener,
Port Marketing Director Gates,
Fire Chief Gage, Finance
Director Gifford, Assistant
Finance Director Bagierek,
Harbormaster Singleton,
Librarian Nicolas, Public Works
Supervisor Ainsworth, Police
Chief Bencardino and Acting City
Clerk Jones
IV.
APPROVAL OF MINUTES:
I
I
I
PAGE 5 REGULAR MEETING - DECEMBER 11, 1989
VOLUME 25
HILTON MOVED TO APPROVE THE NOVEMBER 27, 1989,
MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS
AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF REGULAR MEETING AGENDA:
SIEMINSKI REQUESTED THAT CONSENT CALENDAR ITEM
E. BE MOVED TO THE REGULAR MEETING AGENDA AS ITEM, C.
UNDER NEW BUSINESS.
MEEHAN MOVED TO APPROVE THE REGULAR MEETING
AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIEMINSKI
AND CARRIED WITHOUT OBJECTION.
VI.
BOROUGH ASSEMBLY REPORT:
Kenai peninsula Borough Assemblyman Sewall was
not present and no report was given.
VII.
CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED-
ULED FOR PUBLIC HEARING:
A. Don Holland, 320 6th Avenue stated that he
had received numerous phone calls from bar personnel
reporting that a number of voters did not understand the
wording on the ballot proposition at the December 5,
1989, special election. He felt people should have the
opportunity to understand a simplified phrase on the
ballot.
B. Roaer Sampson, Mile 6.5 spoke regarding the
school bus accident on Second Avenue. He stated that a
number of letters had been received from parents
concerned about safety. He noted that school bus drivers
were well trained and commented that the bus driver
involved in the accident had been commended by a number
of citizens for his actions. He stated that the follow-
ing recommendations were made concerning safety: 1 )
sanding of the roads, 2) studs on the buses, 3) chains
on the tires and 4) seat belts. He reported that all
buses were having studs put on now but he was concerned
about the sanding of the streets. (NOTE: The Chair
noted that it was beyond the two minute time limit but
allowed the presentation to continue). He stated that
as Principal of the Seward Grade School, he was respon-
sible for the safety of the buses. He closed saying that
he appreciated the cooperation of the city.
C. Gar Wona, Nash Road, stated that he would
like to see Nash Road sanded regularly. Burgess noted
that Nash Road was outside the city. Noll assured Mr.
Wong that a review would be done at the city, state and
school district levels.
5
CIT.DISCUSSION:
(D.Holland)
CIT.DISCUSSION:
(R.Sampson)
CIT. DISCUSSION:
(Gar Wong)
6
PAGE 6
REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
VIII.
APPROVAL OF CONSENT CALENDAR:
MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR
AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS AND
CARRIED UNANIMOUSLY. The following actions were taken:
A.
Proposed Resolution No. 89-152, certifying
the population of the city of Seward as
of July 1, 1989, was approved;
RESO/CENSUS: (Certi-
fying 1989 population)
B.
Invoice from Perkins Coie for legal
services for October, 1989, in the amount
of $14,199.66, was approved for payment;
C.ATTY:
C. December 7, 1989, report from Finance
Director Rick Gifford regarding taxable
sales through September, 1989, was noted
for information;
D. December 6, 1989, memorandum from En-
gineer~ng & utilities Manager Diener
awarding a professional services contract
with Alaska Land Surveys, was noted for
information.
IX.
PUBLIC HEARINGS:
None.
X.
PRESENTATIONS WITH PRIOR NOTICE:
None.
XI.
ORDINANCES AND RESOLUTIONS:
A. Ordinances for Introduction:
1. Copies having been made available to
the public, Noll noted by title only a proposed ordinance
entitled:
PROPOSED ORDINANCE NO. 628, REVISING
TITLE 9, HEALTH AND SAFETY; AND
TITLE 12, BUILDINGS AND CONSTRUC-
TION; PROVIDING FOR APPEAL OF AN
ADMINISTRATIVE DECISION.
HILTON MOVED TO INTRODUCE ORDINANCE NO. 628:
THE MOTION WAS SECONDED BY MEEHAN.
Schaefermeyer noted that the ordinance provi-
ded for a process to handle appeals of decisions made on
the interpretation of the fire code and the building
I
I
I
PAGE 7 REGULAR MEETING - DECEMBER 11, 1989
VOLUME 25
code with the City Council acting as the appeals body.
Noll stated that he would like to discuss some
of the language contained in the ordinance when it comes
up for public hearing.
Sieminski asked whether Afognak Logging was
inside the city limits. Schaefermeyer answered that it
was inside the city and would need to meet code require-
ments. He stated that the city has a responsibility to
meet life safety codes.
THE
THE COUNCIL.
8, 1990.
MOTION WAS APPROVED BY UNANIMOUS VOTE OF
PUBLIC HEARING WAS SCHEDULED FOR JANUARY
B. Ordinances for Public Hearing & Enact-
ment:
None.
C. Resolutions:
1. Copies having been made available to
the public, Noll noted by title only a proposed resolu-
tion entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ADOPTING A COOR-
DINATED PROTECTIVE CUSTODY PLAN AND
APPROPRIATING FUNDS FOR REIMBURSE-
MENT FOR SERVICES FOR THE HANDLING
OF PROTECTIVE CUSTODY CASES.
Noll requested a ruling on a conflict of
interest for Councilmember Hilton.
Ci ty Attorney Arvidson stated that based on
the fact that Hilton is an employee of Seward General
Hospital, there was a conflict of interest. Hilton
stated he would abstain.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
142, THE MOTION WAS SECONDED BY BURGESS.
Yanez reviewed the protective custody plan.
He stated that there were changes to the plan regarding
training of the police officers and other changes re-
quested by the State. Arvidson stated that program
training for the police department would be reviewed.
A seminar would be arranged for hospital employees and
the police to help develop procedures for use on the
streets. He expected that these procedures will change
over time as the process is fine tuned.
7
RESO/POLICE DEPT,
(Protective Custody
Policy)
8
PAGE 8
REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
Schaefermeyer stated that the city was propos-
ing $19,800 in funds to match the State funds granted to
SLAC to foster the program. He stated that city funds
would be utilized after the State funds were depleted
and the proper documentation was presented to the city.
He noted that the funds would be used 100 percent for
treatment and care of protective custody patients.
In answer to a question from Burgess, Arvidson
stated that the section regarding incapacitated persons
parallels the State Statute. Burgess voiced his concern
about a person who was not that intoxicated being picked
up by the police and transported.
Schaefermeyer stated that the only time an
individual is transported is if he poses a danger to
himself or others, or cannot function and make proper
decisions.
Arvidson stated that the plan was being imple-
mented to comply with Title 47 of the Alaska State
Statutes.
Meehan stated that the city was at risk either
way, noting that Seward was the first in line to take
action on a protective custody plan. It was noted that
the plan gives the city more protection by complying with
Title 47. He stated that he would like to delay ap-
propriating funds until they were needed and more facts
were received.
Noll stated that the plan must be put into
effect by year end or SLAC could lose their State grant
funds. He asked how the hospital would pursue payment
from individuals.
Schaefermeyer stated that the hospital would
pursue personal payment and insurance payment before
submitting a request for SLAC funds.
Noll suggested adopting the plan for one
subject to review by the Council every 90 days.
Council would be apprised of situations and would
the authority to make decisions to amend, delete,
items as appropriate.
year
The
have
etc.
Schaefermeyer stated that the city would not
commit funds within the first 90 days until a review was
done by the City Council.
THE MOTION WAS APPROVED WITHOUT OBJECTION WITH
FOUR "YES" VOTES AND HILTON ABSTAINING.
I
I
I
PAGE 9 REGULAR MEETING - DECEMBER 11, 1989
VOLUME 25
RECESS: The meeting was recessed at 8:49 p.m. and
reconvened at 9:00.
NOTE: Kenai Peninsula Borough Representative Sewall
arrived and presented his report on the December 5
assembly meeting. He reported that the assembly had
passed the following resolutions: 1) 89-136, urging the
legislature to move up priority of the Seward Highway
Project upgrade of Mile 50-65 including the Canyon Creek
Bridge; 2) 89-137, awarding a contract for maintenance
of the Seward landfill to July 1991 or until the land-
fill ceases to operate. He noted that the Seward trans-
fer site facility for waste disposal was being designed
and the ordinance on gaming sales was upheld to exempt
non-profit organizations from sales tax. He stated that
a public hearing would be held at the assembly meeting
of January 2, 1990, on delegation of zoning and land use
powers to the City of Seward.
Sewall reported that the trade delegation to
Seoul, Korea had recently returned and all the delegates
were impressed by Port Marketing Director Gates exper-
tise on areas of interest.
He stated that the seat belt issue had come
before the assembly and research indicated that it was
a disadvantage overall to require that seat belts be used
on school buses.
Burgess asked Sewall about the trucks which
would be hauling bales of garbage from the new transfer
site when it was completed. Sewall stated that the
trucks would be large. Burgess voiced his concern about
the trucks using the residential areas for a truck route.
Schaefermeyer stated that a new access road to the
landfill was needed and should be looked into now.
2.
public, Noll
entitled:
Copies having been made available to the
noted by title only a proposed resolution
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, ES-
TABLISHING THE GROSS WEEKLY EARNINGS
TO BE USED FOR THE PURPOSE OF CAL-
CULATING WORKERS' COMPENSATION BENE-
FITS FOR CERTAIN VOLUNTEERS.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89-
153; THE MOTION WAS SECONDED BY HILTON.
insurance
rate for
Schaefermeyer stated that the the city's
carrier, AML-JIA, requires adoption of a wage
volunteers for computation of the workers
9
RESO/PERSONNEL:
(Workers' Camp
rates set for
volunteers)
10
RESO/SGH: Approp.
Sales Tax Revenues
to hospital)
PAGE 10
REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
compensation premium. It is mandated that the city set
a per hour rate and base that rate on 10 hours worked
per week as an average to provide a premium amount for
workers compensation for volunteers.
Gifford reported that the city was proposing
to set the hourly rate at $14.50 for calculation of the
premium.
Hilton asked why the rate was set at $14.50.
Gage replied that it was a mid-line rate for volunteers
at the fire department.
Schaefermeyer noted that the hourly rate to be
used was to provide workers compensation coverage if they
should be injured.
Noll stated that the rate of $14.50 was not an
actual wage but a value established to calculate the
insurance premium.
In answer to a question from Burgess, Schae-
fermeyer stated that AML-JIA had imposed a deadline of
January 1. If a rate is not established, they will set
one for the city.
RESOLUTION NO. 89-153 WAS APPROVED BY UN-
ANIMOUS VOTE OF THE COUNCIL.
3. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, AP-
PROPRIATING ADDITIONAL SALES TAX
CONTRIBUTIONS TO SEWARD GENERAL
HOSPITAL.
Noll ruled that Councilmember Hilton would
abstain due to a conflict of interest.
Schaefermeyer stated that the contribution of
$46,609 for the cardiac monitor for the hospital was
treated as a portion of the sales tax true up. He
stated that if the contribution was not figured in the
sales tax, then the additional tax owed to the hospital
for FY89 totalled $56,156.75.
Meehan stated that the cardiac monitor was a
trade off for accounting services provided to the city
and was independent of this, therefore the total amount
should be paid to the hospital.
I
I
I
PAGE 11 REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
MEEHAN MOVED TO AMEND RESOLUTION NO. 89-154 BY
CHANGING THE SUM IN SECTION 1. TO $56,156.75. THE MOTION
WAS SECONDED BY NOLL AND CARRIED WITHOUT OBJECTION. THE
MAIN MOTION WAS APPROVED WITH FOUR "YES" VOTES AND HILTON
ABSTAINING.
XII.
UNFINISHED BUSINESS:
None.
XIII.
NEW BUSINESS:
A. Certification of the December 5. 1989.
special election. Arvidson presented a brief history of
proceedings from the introduction of Ordinance 619,
regulating the hours of liquor establishments, through
the December 5, 1989 election, referring the repeal of
Ordinance 619 to the voters of the city. He stated that
the clerk had received a formal petition sponsored by
Don Holland contesting the special election before the
5:00 p.m. deadline of December 11, 1989. The two rea-
sons stated on the petition were: 1) Seven questioned
and absentee ballots were not counted; and 2) the
wording on the ballot was confusing to the average
person. Arvidson stated that the petition appeared to
be valid and was accompanied by a $1,000 cash bond as
required by the Seward City Code.
Arvidson recommended the following: 1) Call
for a re-canvass of the remaining questioned and absentee
ballots to determine if they should be counted, then call
a special meeting to certify the results of the election;
2) call for a recount of all absentee and questioned
ballots followed by a special meeting; and/or 3) note
the protest of the election and call for an inves-
tigation by the appropriate officials.
BURGESS MOVED TO INSTRUCT THE CITY ATTORNEY
AND THE CITY CLERK TO CONDUCT AN INVESTIGATION OF THE
ELECTION AND PRESENT THEIR FINDINGS TO THE CITY COUNCIL
AT A SPECIAL MEETING SCHEDULED FOR WEDNESDAY, DECEMBER
13, 1989, AT 12: 00 NOON. THE MOTION WAS SECONDED BY
HILTON AND CARRIED UNANIMOUSLY.
B. City Office Needs and Options. Schaefer-
meyer stated that the administration had been exploring
options regarding city office space. He noted that at
this time, he would continue leasing the Ray Building to
meet city needs. He stated that the owners were working
to correct deficiencies in the building and to provide
additional office space to the city.
In answer to a question from Hilton about the
basement at city hall, Schaefermeyer replied that it was
11
ELECTIONS: (Clerk
& Atty instructed
to conduct investi-
gation of Election
in answer to Con-
test filed by D.
Holland)
CITY HALL: (RFP for
office lease space
authorized)
12
RE- /NARINA SUB:
(Assign. of lease
from Norman to
Johnson approved)
PAGE 12
REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
not handicap accessible and did not meet fire codes for
office space.
Sieminski commented that the city should seek
requests for proposals for office space and explore other
options.
In answer to a question by Noll about lease
terms, Schaefermeyer stated that the city leases the Ray
Building on a month to month basis with a 60 day notice
of termination by either party.
Burgess recommended that this issue be post-
poned until the next meeting to give the administration,
the property owners and the Council a chance to discuss
it at greater lengths.
Hilton stated that he didn't want to force the
administration into a corner by seeking proposals which
might increase the lease rate considerably overall. He
asked if the city would have the right to reject all
bids.
SIEMINSKI MOVED TO SEEK REQUESTS FOR LEASE
PROPOSALS FOR CITY OFFICE SPACE. THE MOTION WAS SECOND-
ED BY NOLL. NOLL NOTED THAT MEEHAN WAS ABSTAINING ON
THIS ISSUE DUE TO A CONFLICT OF INTEREST. THE QUESTION
WAS CALLED AND THE MOTION FAILED WITH FOUR "NO" VOTES
AND MEEHAN ABSTAINING.
Marina
Marine.
3. Assiqnment of LEASE
Subdivision; from Michael
to Howard Johnson.
of Lot 6. Block 1.
Norman. dba Ouest
Sieminski asked if there was a provision for
Small Boat Harbor leases to remain open for 150 days.
Schaefermeyer replied that this was an assign-
ment only, not a change of the lease; therefore, the
lease terms could not be changed. Arvidson stated that
the city could not request unreasonable changes to a term
on an assignment. The term lease on the current lease
expires in 2001 with no renewal option available.
Sieminski asked if all taxes and bills had been
paid on the property and who owed the Kenai Peninsula
Borough sales tax.
Administrative Assistant Martin stated that
Mr. Norman would need to file his sales tax report with
the Borough, then the Borough would pursue the collec-
tion of sales tax from him.
I
I
I
13
PAGE 13 REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
Schaefermeyer stated that the conditions of
the lease, including all outstanding utility bills,
property taxes and rent, must be paid to bring the lease
current as a condition of this assignment. He noted that
Mr. Johnson would be required to pay those items.
SIEMINSKI
REASSIGNMENT OF THE
LISTED ABOVE ARE MET.
DIED.
MOVED TO POSTPONE ACTION ON THE
LEASE UNTIL AFTER THE CONo,ITIONS
THERE WAS NO SECOND AND THE MOTION
HILTON MOVED TO APPROVE REASSIGNMENT OF THE
LEASE FROM MR. NORMAN TO MR. JOHNSON UPON SATISFACTION
OF THE FOLLOWING CONDITIONS: 1) ALL UTILITY BILLS AND
PROPERTY TAXES ARE BROUGHT CURRENT; 2) KENAI PENINSULA
BOROUGH SALES TAX FILINGS ARE BROUGHT CURRENT; AND 3) AN
AGREEMENT IS COMPLETED TO ALLOW ACCESS ACROSS THE BACK
OF LOT 6 TO THE BUSINESSES ON ADJACENT LOT 5. THE MOTION
WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED AND THE
MOTION CARRIED WITH FOUR "YES" VOTES AND SIEMINSKI VOTING
"NOlf.
XIV. CITY MANAGER REPORTS:
A. Financial Report - 1st Ouarter of Fv 1990.
Assistant Finance Director Bagierek gave a financial
report on the period from July 1 through September 30.
She stated that everything should be on-line by the time
the next quarterly report is ready. Gifford noted that
the 2nd quarter report would be ready by the end of
January or beginning of February.
Schaefermeyer reported that he planned to take
some time off from December 18 to January 2. He noted
that he would be in town and would be home most of the
time. He stated that the IBEW negotiations had reached
an end and an agreement was reached. Once the agreement
was ratified by the Union, he stated that he would like
to hold a special meeting for council approval, probably
after the Christmas holiday.
Gates gave a brief report on his activities.
He stated that the Korean delegation had just returned
from their trip to Korea and a number of topics were
discussed including tourism, forest products, coal, navy
and general cargo. He stated that they were in touch
with sixteen different countries.
xv.
COUNCIL DISCUSSION:
SIEMINSKI stated that he would like to review
the lease of the building at city hall with the city
attorney.
llh
PAGE 14
REGULAR MEETING - DECEMBER 11, 1989 VOLUME 25
NOLL stated that a joint work session with the
Port Development Committee was to be scheduled for after
the new year on marine-related projects. On behalf of
the City Council, he wished all the citizens of Seward
a Merry Christmas and Happy New Year.
XVI. CITIZENS' DISCUSSION:
JIM KRASNANSKY, 536 Second Avenue stated that
the letter sent to the Council regarding the school bus
accident had been signed by a number of concerned citi-
zens and thanked the Mayor for his reply. He encouraged
the city to put more sand on the streets.
XVI I.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
NOLL stated that a factual report was present-
ed on the school bus accident. He noted that the street
department does a good job with conditions as they
sometimes are.
MEEHAN stated that he was concerned with the
issue and was sure that the city was cooperating with
the school district to maintain safe conditions for all.
BURGESS stated that you could not always
predict what the weather would be.
XVIII.
ADJOURNMENT:
The meeting was adjourned at 11:00 p.m.
Q~~ ..)~
Patricia J. Jones
Acting City Clerk
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I
I
PAGE 15 REGULAR MEETING - DECEMBER 13. 1989 VOLUME 25
I.
CALL TO ORDER:
The December 13, 1989, special meeting of the
Seward City Council was called to order at 12:10 p.m. by
Mayor William C. Noll.
II .
OPENING CEREMONY:
Councilmember Hilton led the pledge of al-
legiance to the flag.
III.
ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Hilton, and Meehan,
Dunham, Sieminski and Simutis
were excused
Present also: City Manager Schaefermeyer, City
Attorney Arvidson, Administra-
tive Secretary Watts and Acting
City Clerk Jones
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
BURGESS MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
V.
NEW BUSINESS:
A. Consideration of reports by investigating
officials and other evidence to determine validity of
contest of special election of December 5. 1989. Noll
commented that a brief overview of the report would be
presented by the city attorney and city clerk. He would
then call for a thirty minute recess so council and other
interested parties could read the report.
NOLL OPENED THE FLOOR FOR PUBLIC COMMENT AT
THIS TIME. NOBODY SPOKE IN ORDER TO BE HEARD AND THE
PUBLIC COMMENT SESSION WAS CLOSED.
Arvidson stated that extra packets were
available for the public. He gave a summary of the
findings of the investigation of the special election.
He stated that the seven questioned and
absentee ballots which were not counted were eligible to
be counted. He noted that the State Division of Elec-
tions had entered the wrong registration dates in the
computers, but they had corrected their error and
apologized for the mistake. He stated that although the
counting of these seven ballots would not change the
15
ELECTIONS: (Report
on Investigation
of Election pre-
sented to Council)
16
PAGE 16 REGULAR MEETING - DECEMBER 13. 1989 VOLUME 25
outcome of the election, it would be proper to call a re-
canvass and count those votes so the record is concise.
The second complaint, which stated that the
wording on the ballot proposition was confusing and
unclear, took a bit of research. He stated that he had
reviewed a few cases concerning this and noted that the
question to ask is "was the election marred by a corrupt
election practice?" Was the wording on the ballot
proposition phrased to make it intentionally confusing?
He stated that since a referendum petition had been
submitted to repeal Ordinance 619, the wording from the
petition was used to phrase the wording on the proposi-
tion ballot. The wording which states: "Shall Ordinance
619, regulating the hours that liquor establishments
shall remain open, be repealed?" was phrased as simply
as possible. Because of code requirements and the way
the petition was worded, this was the proper wording for
this particular ballot. He noted that due to the
complicated process from the time the ordinance was
enacted by the council and the referendum petition was
subsequently filed, there could have been confusion if
a person had not followed the process closely. However,
the records were available for the public to review and
the clerk was available during office hours to answer any
questions on the subject.
Acting City Clerk Jones presented an outline
of the packet which included documentation from the time
Ordinance 619 was introduced on July 24, 1989, at a
regular council meeting up to the current investigation.
RECESS: The meeting was recessed at 12:26 p.m. and
reconvened at 12:54 p.m.
packet.
minutes.
Noll asked everyone if they had read the
In response to a no, he called a recess for five
RECESS: The meeting was recessed at 12:58 p.m. and
reconvened at 1:03 p.m.
BURGESS MOVED TO ACKNOWLEDGE RECEIPT OF THE
INVESTIGATIVE REPORT PRESENTED BY THE CITY ATTORNEY AND
CITY CLERK CONCERNING THE DECEMBER 5, 1989, SPECIAL
ELECTION. THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
Arvidson stated that the report was divided
into two parts as follows:
1. Corrupt election practice due to wording
on the ballot.
2. Uncounted questioned and absentee ballots.
I
I
I
17
PAGE 17 REGULAR MEETING - DECEMBER 13, 1989 VOLUME 25
Item No. 2 was discussed first. Meehan stated
that all eligible ballots should be counted because
everybody's vote should count.
Arvidson recommended that the council call for
a re-canvass to determine if the remaining questioned and
absentee ballots should be counted.
In answer to a question from Burgess about when
to re-canvass, Arvidson stated that the safest course
would be to reconvene after proper notice. He stated
that the public was welcome to attend the re-canvass.
In answer to a question concerning secrecy of a cast
ballot, Arvidson noted that when a voter votes, there is
always a slight risk of his vote becoming public.
NOLL OPENED THE FLOOR FOR PUBLIC COMMENT.
Don Holland, 320 Sixth Avenue, stated that the
ballots should be counted. He noted that this was a
separate issue from the corrupt election practice.
NO ONE ELSE SPOKE IN ORDER TO BE HEARD AND THE
PUBLIC COMMENT SESSION WAS CLOSED.
HILTON MOVED TO RECONVENE THE CANVASS BOARD FOR
THE PURPOSE OF RECONSIDERING THE REMAINING QUESTIONED AND
ABSENTEE BALLOTS. THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
RECESS: The meeting was recessed at 1: 22 p.m. while
Councilmember Hilton made a phone call. The meeting
reconvened at 1:25 p.m.
BURGESS MOVED TO CALL A SPECIAL MEETING TO RE-
CANVASS THE BALLOTS FOR FRIDAY, DECEMBER 15, 1989, AT
4:00 P.M. THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
Arvidson reported on part one of the report
regarding "a corrupt election practice." He stated that
in using the term "corrupt election practice", the bottom
line was "were the voters frustrated in exercising their
right to vote?" He noted that in the context of the
ballot proposition, the courts seem to look at the
wording of the proposition to see if it was understan-
dable, whether it required a yes vote, the complexity of
the wording, and whether the language of the proposition
appeared to be biased.
NOLL OPENED THE FLOOR FOR PUBLIC COMMENT.
18
ELECTIONS:
Special Election
declared valid &
free from corrupt
practice
PAGE 18 REGULAR MEETING - DECEMBER 13. 1989 VOLUME 25
PEGGY HASH, 224 Fourth Avenue stated that she
was a bartender at the Yukon Bar. She stated that she
had received comment from several people that they were
confused by the wording on the proposition ballot. She
reported that many folks had voted no when they meant to
vote yes.
DON HOLLAND, 320 sixth Avenue, stated that
several people told him that the ballot proposition was
not worded properly. He thought that all voters should
have a fair chance to understand what the ballot meant,
since many did not understand the wording.
PAT O'BRIEN, 209 Ravina, stated that this issue
was very well publicized. He noted that if people had
strong feelings about the issue, they should have made
sure they understood what they were voting on and if they
did not understand, they should have taken the time to
find out. He stated that the election was over so it was
time to certify it and put the ordinance into effect.
NO ONE ELSE APPEARED IN ORDER TO BE HEARD AND
THE PUBLIC COMMENT SESSION WAS CLOSED.
Arvidson reported that the way the proposition
was phrased follows the requirements set forth in the
state statutes. The law requires that a good faith
effort should be made to word the ballot in a simple
language understood by the average reader.
Hilton stated that he did not see this problem
as a "corrupt election practice".
Mr. Holland added that since an error was made
by the state on the eligibility of certain questioned and
absentee ballots, it was one cause which could invalidate
the election.
Arvidson replied to Mr. Holland's remark
stating that a number of reasons could be cited which
could cause an election to be declared invalid. He noted
however, that the seven ballots in question would not
have affected the outcome of the election. The city
wished to count them because they should have been
counted.
HILTON MOVED TO DECLARE THE DECEMBER 5, 1989,
SPECIAL ELECTION TO BE VALID AND FREE FROM CORRUPT
ELECTION PRACTICE. THE MOTION WAS SECONDED BY BURGESS.
Meehan asked what course of action could be
taken by the petitioner if the election was certified as
valid. Arvidson stated that according to the city code,
the petitioner could bring action in the state superior
I
I
I
19
PAGE 19 REGULAR MEETING - DECEMBER 13. 1989 VOLUME 25
court within ten days following certification of the
election.
In answer to a question from Meehan, Jones
stated that the ballot summaries were available to the
voters at the polls as well as in advance of the elec-
tion. The ballot summary made it clear what the outcome
of a "yes" or "no" vote meant.
BURGESS stated that he had to read the summary
to make sure he understood correctly on how to vote but
the wording on the ballot proposition was done correctly
following procedure.
NOLL stated that he also had to read the ballot
closely and read further information, but that informa-
tion was available to the public.
THE QUESTION WAS CALLED AND THE MOTION CARRIED
UNANIMOUSLY.
MEEHAN suggested that the election should be
certified at the next regular meeting of January 8, 1990.
In answer to a question from Council, Arvidson
stated that according to city code, an election should
be certified on the Monday following the election or an
investigation should be ordered if the election is
contested; and the certification may be postponed day to
day but not to exceed three postponements. He suggested
that the election be certified in the shortest time
possible once it was declared valid.
BURGESS MOVED TO SCHEDULE A SPECIAL MEETING FOR
FRIDAY, DECEMBER 15, FOLLOWING THE RE-CANVASS OF THE
ELECTION, TO CERTIFY THE DECEMBER 5, 1989, SPECIAL
ELECTION RESULTS. THE MOTION WAS SECONDED BY HILTON.
THE MAIN MOTION WAS AMENDED TO SCHEDULE THE TIME OF THE
MEETING FOR 4:30 P.M. THERE WAS NO OBJECTION ON THE
AMENDMENT.
MEEHAN stated that he did not think a special
meeting was required to certify the election and it
should be done on January 8.
At the Council's request, Arvidson noted that
the election process fits into a tight time frame
according to the code. He suggested certifying the
election as soon as possible. Hilton and Burgess
concurred.
NOLL stated that Council should follow the
election process according to schedule. He stated that
20
PAGE 20 REGULAR MEETING - DECEMBER 13, 1989 VOLUME 25
certifying the election soon was in the best interest of
the people.
THE QUESTION WAS CALLED ON THE MAIN MOTION AS
AMENDED AND FAILED WITH THREE "YES" VOTES AND MEEHAN
VOTING "NO".
BURGESS MOVED TO CERTIFY THE RESULTS OF THE
DECEMBER 5, 1989, SPECIAL ELECTION AT THE NEXT REGULARLY
SCHEDULED MEETING OF JANUARY 8, 1990; THE MOTION WAS
SECONDED BY MEEHAN. THE QUESTION WAS CALLED AND THE
MOTION FAILED WITH MEEHAN AND BURGESS VOTING "YES" AND
HILTON AND NOLL VOTING "NO".
RECESS: The meeting was recessed for ten minutes at 2: 50
p.m. and reconvened at 3:03 p.m.
At the request of the Council, Arvidson
explained the code provisions regarding the calling of
a meeting. He explained that any two councilmembers, the
mayor or the city manager could call a special meeting
with a six hour notice.
MEEHAN stated that he would support certifying
the election at a special meeting since it would not be
done at the regular meeting of January 8, 1990.
MEEHAN MOVED TO SCHEDULE A SPECIAL MEETING AT
5:00 P.M. ON FRIDAY, DECEMBER 15, 1989, TO CERTIFY THE
RESULTS OF THE DECEMBER 5, 1989, SPECIAL ELECTION; THE
MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY.
VI.
COUNCIL DISCUSSION:
None.
VII.
CITIZENS' DISCUSSION:
DON HOLLAND, 320 6th Avenue, stated that he was
disappointed that the terminology used was written as
"corruption". He noted that the language on the ballot
was not clear and concise and could have been phrased
better. He stated that the bars should be closed across
the board without exceptions for special holidays.
PEGGY HASH, 224 Fourth Avenue, stated that she
was amazed how the interpretation of the wording on the
ballot was taken differently by so many people. She
agreed with Mr. Holland that the interpretation of the
word "corrupt" was wrong.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
VIII.
21
PAGE 21 REGULAR MEETING - DECEMBER 1!. 1989 VOLUME 25
I
ARVIDSON replied that the words "clear",
"concise", and "biased", were within the meaning of the
word "corruption".
IX.
ADJOURNMENT:
The meeting was adjourned at 3:19 p.m.
.>
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Mayor
--
-------------------------------------------
SPECIAL MEETING - DEC. 15, 1989
VOLUME 25
I.
CALL TO ORDER:
I
The December 15, 1989, special meeting of the
Seward City Council was called to order at 4:04 p.m. by
Mayor William C. Noll.
II .
OPENING CEREMONY:
Councilmember Meehan led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Hilton, Meehan, and
Sieminski (Dunham & Simutis were
excused)
Present also: City Manager Schaefermeyer and
Acting City Clerk Jones
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
BURGESS MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
I
V.
NEW BUSINESS:
22
ELECTIONS:
(Canvass of
Special Elec)
PAGE 22 REGULAR MEETING - DECEMBER 1G, 1989 VOLUME 25
A. Canvass of remaining questioned and
absentee ballots cast at the December 5, 1989, special
election.
Jones distributed a tally of the votes cast in
the December 5, 1989, special election and a tally of the
votes counted at the December 6, 1989, canvass of the
election. She noted that a total of five hundred 500
votes had been cast at the polls. Of these, four hundred
fifty-eight (458) ballots had been counted by the
election board. She also noted that at the canvass of
the election on December 6, 1989, the canvass board
counted twenty-four (24) absentee ballots out of twenty-
six (26) ballots cast and four (4) questioned ballots of
the sixteen (16) total questioned ballots cast.
Jones reported that following the December 6,
1989, canvass, she received a complaint from a voter
whose vote had not been counted. Upon further investiga-
tion it was discovered that six (6) of the remaining
twelve (12) questioned ballots and one (1) absentee
ballot were eligible to be counted. She recommended that
one absentee ballot cast by DEBRA CALDERA be counted and
six questioned ballots be counted as follows:
PRECINCT NO.1
PRECINCT NO. 2
GREENWELL, John F.
TOUTONGHI, Ruta I.
SWANSON, Bennett R.
WEATHERS, Troy Ann
BERNIER, Blanche E.
TOUTONGHI, Joseph
HILTON MOVED TO ACCEPT THE CLERK'S RECOMMENDA-
TION TO COUNT THE ONE ABSENTEE BALLOT AND SIX QUESTIONED
BALLOTS; THE MOTION WAS SECONDED BY BURGESS AND CARRIED
UNANIMOUSLY.
Jones stated that the remaining rejected
ballots were ineligible to be counted for the following
reasons:
PRECINCT NO.1
MULLICAN, Judith R. -
WHITAKER, Emma Lee -
Registered in Kodiak
Purged by Div. of Elections
in May, 1987.
Purged by Div. of Elections
in May, 1989.
WEAVERLING, James -
PRECINCT NO. 2
REAGLE, Clifton A. -
REAGLE, Barbara J. -
FORREST, Charles G.-
Registered in Bear Creek
Registered in Bear Creek
Registered in Bear Creek
23
PAGE 23
SPECIAL MEETING - DECEMBER 15, 1989 VOLUME 25
I
HILTON MOVED TO REJECT THE REMAINING SIX
QUESTIONED BALLOTS; THE MOTION WAS SECONDED BY MEEHAN AND
CARRIED UNANIMOUSLY.
Jones set aside the remaining rejected ballots
for safekeeping.
As Meehan read the names on the envelopes of
the remaining ballots to be counted, Burgess opened the
outer envelopes, removed the white inner envelopes and
set them aside to be counted.
The absentee and questioned white ballot
envelopes were shuffled by Meehan and opened and removed
by Burgess. The ballots were read aloud by Meehan as
Hilton and Sieminski tallied the votes. Jones read the
revised results of the combined totals as follows:
Precinct Precinct Question
No. 1 No. 2 Absentee Total
PROPOSITION NO. 1
(Repeal of Ordinance
No. 619, regulating
the hours of opera-
I tions of liquor
establishments)
YES 151 54 15 220
NO 154 99 20 273
TOTAL VOTES CAST: 331 169 26/16 500
TOTAL VOTES COUNTED: 305 153 25/10 493
Jones noted protest procedures which must be
followed should anyone wish to protest the re-canvass of
the election.
VI.
COUNCIL DISCUSSION:
In answer to a question from Hilton, Arvidson
stated that according to the code, the next step follow-
ing contest of the election would be to file a complaint
with the State Superior Court within ten days following
certification of the election.
SIEMINSKI asked about refunding Mr. Holland's
cash bond of $1,000.
I
NOLL stated that the Council could render a
decision on the matter or instruct the city administra-
tion to decide whether or not to refund the bond.
SCHAEFERMEYER replied that the main issue of
the contest was the merit of the wording on the ballot
proposition. He stated that the questioned ballot issue
24:
PAGE 24 REGULAR MEETING - DECEMBER 15, 1989 VOLUME 25
was a small part of the contest but those ballots would
have been counted once the error was discovered even if
a petition for contest had not been filed.
MEEHAN stated that Mr. Holland should receive
a refund. Sieminski concurred stating that Mr. Holland
should not be penalized for his efforts.
HILTON stated that the small number of ballots
counted would not have affected the outcome of the
election. He concurred with Schaefermeyer regarding the
wording on the ballot and stated that the petitioner
should bear part of the cost of the contest. BURGESS
concurred.
NOLL turned the matter over to the city manager
and asked him to report back after calculating the cost
of the contest.
VII.
CITIZENS' DISCUSSION:
BRUCE TRYGSTAD, 319 Second Avenue, stated that
the contest of the election was ridiculous. He noted
that if people did not understand the wording on the
ballot, they should have inquired about it.
VIII .
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
None.
IX. ADJOURNMENT:
The meeting was adjourned at 4:33 p.m.
\J~~ :J.~~
Patricia J. Jones
Acting City Clerk
~
W1 1am C. Noll
Mayor
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PAGE 25
SPECIAL MEETING - DEC. 15, 1989
VOLUME 25
I.
CALL TO ORDER:
The December 15, 1989, special meeting of the
Seward City Council was called to order at 5:00 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Burgess led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Hilton, Meehan and
Sieminski (Dunham and Simutis
were excused)
Present also: City Manager Schaefermeyer and
Acting City Clerk Jones
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
BURGESS MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
V.
APPROVAL OF MINUTES: (12/06/89)
BURGESS MOVED TO APPROVE THE DECEMBER 6, 1989,
MINUTES AS PRESENTED; THE MOTION WAS SECONDED BY HILTON
AND CARRIED UNANIMOUSLY.
VI.
NEW BUSINESS:
election.
A. Certification of December 5, 1989, special
HILTON MOVED TO CERTIFY THE OFFICIAL RESULTS
OF THE DECEMBER 5, 1989, SPECIAL ELECTION; THE MOTION WAS
SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY.
VII.
COUNCIL DISCUSSION:
None.
VIII.
CITIZENS' DISCUSSION:
IX.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
A. Schaefermeyer informed the Council that
Senator Kerttula would be visiting Seward on Monday and
25
ELECTIONS: (Spec.
Election certified/
Ord. 619 to go
into effect)
t"'G
~1 '~.
PAGE 26 SPECIAL MEETING - DECEMBER 15. 1989 VOLUME 25
Tuesday, December 18 and 19, and would be available to
speak to the council and the public during his stay.
B. Schaefermeyer reported that the IBEW
negotiations were completed and he expected to bring the
final contract to the council for ratification before
January 1, 1990. The effective date of the contract, if
approved would be January 1, 1990 through June 30, 1992.
x.
ADJOURNMENT:
The meeting was adjourned at 5:12 p.m.
-V~~.~
Patricia J. Jones
Act:~~lerk
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W1ll1am C. Noll
Mayor
PAGE 26
----------------------------------------------------------------
VOLUME 25
SPECIAL MEETING - DEC. 27, 1989
I.
CALL TO ORDER:
The December 27, 1989, special meeting of the
Seward City Council was called to order at 12:10 p.m. by
Mayor William C. Noll.
II.
OPENING CEREMONY:
Councilmember Hilton led the pledge of al-
legiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess , Hilton, Meehan, and
Sieminski (Dunham and Simutis
were excused)
Present also : City Manager Schaefermeyer,
Utility Engineer Anderson, and
Acting City Clerk Jones
I
I
I
PAGE 27
SPECIAL MEETING - DEC. 27, 1989
VOLUME 25
IV.
APPROVAL OF SPECIAL MEETING AGENDA:
MEEHAN MOVED TO APPROVE THE SPECIAL MEETING
AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS
AND CARRIED UNANIMOUSLY.
V.
RESOLUTIONS:
A. Copies having been made available to the
public, Noll noted by title only a proposed resolution
entitled:
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, APPRO-
VING A COLLECTIVE BARGAINING AGREE-
MENT FOR IBEW LINEMEN FOR THE PERIOD
JANUARY 1 , 1990 THROUGH JUNE 30 ,
1992.
Schaefermeyer stated that negotiations were
complete and an agreement had been reached between the
City and Local 1547 of the International Brotherhood of
Electrical Workers for the electrical linemen. He noted
that IBEW had already approved the written agreement
before it was presented to Council.
Noll asked Schaefermeyer what would happen if
the agreement was not approved by the City. Schaefer-
meyer replied that he would return to the bargaining
table. He stated that there was no formal agreement in
effect at this time but IBEW and the City were operating
under established ground rules.
The areas of the new agreement where changes
had been made were discussed.
MEEHAN MOVED TO APPROVE RESOLUTION NO. 89
155; THE MOTION WAS SECONDED BY HILTON AND CARRIED
UNANIMOUSLY.
VI.
COUNCIL DISCUSSION:
None.
VII.
CITIZENS1 DISCUSSION:
None.
VIII.
COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM-
MENTS:
Schaefermeyer stated that this had been a long
process which took one year at the bargaining table.
27
RESO/IBEW: (Coil.
Bargaining Agrmt.
approved)
28
PAGE 28
SPECIAL MEETING - DEC 27. 1989
VOLUME 25
Noll noted that the city was hosting an open
house from 5:00 p.m. to 7:00 p.m., December 15, at the
Frontier Restaurant for newly appointed House Represen-
tative Gene Kubina.
IX.
ADJOURNMENT:
The meeting was adjourned at 1:37 p.m.
j.~~
Jones
Clerk
~
Mayor
REGULAR MEETING - JANUARY 8 1990
VOLUME 25
I.
CALL TO ORDER:
The January 8, 1990, regular meeting of the
Seward city Council was called to order at 7:30 p.m. by
Mayor William c. Noll.
II.
OPENING CEREMONY:
City Manager Schaefermeyer led the pledge of
allegiance to the flag.
III. ROLL CALL:
Present were: Mayor Noll and Councilmembers
Burgess, Dunham, Hilton, Meehan,
Sieminski and Simutis
Present also: City Manager Schaefermeyer, city
Attorney Arvidson, Assistant
ci ty Manager Yanez, Engineering
and utilities Manager Diener,
Port Marketing Director Gates,
Fire Chief Gage, Finance
Director Gifford, Harbormaster
singleton, Librarian Nicolas,
Police Chief Bencardino and
Administrative Secretary Watts