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HomeMy WebLinkAbout1990 City Council Minutes I I I PAGE 29 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE DECEMBER 11, 13, AND 27 MINUTES AND THE DECEMBER 15, 1990, - RECANVASS AND CERTIFICATION OF ELECTION MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: HILTON 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 Assemblyman Sewall was not present and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: A. Brad Snowden, 525 6th Ave, asked the following questions: 1) Is the city shop area ready for a request for proposal to relocate? Schaefermeyer in answer indicated that the city shop area had been considered for development for some time as the land utilized by the city shop was not its best use; however there were two problems. First, the city had insufficient funds to find an alternative location for city shop facilities and second, the city did not have ownership of the entire block in question which would probably be needed for some major development. Schaefermeyer also pointed out that there had been an expression of interest several years ago for development of the land for a hotel but nothing had materialized yet. 2) Maya person at any time make a proposal to lease city property? Schaefermeyer answered that the city was always amenable for proposals on city land or for development. 3) Is there a city employee who has the respon- sibility to seek lessees for city property? Schaefer- meyer referred Mr. Snowden to Chris Gates. In response, Mr. Snowden indicated that he had been approached by several city employees concerning development of the property and he felt that if it was ready for develop- ment, it should go to proposals. VIII. APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. SIMUTIS ABSTAINED FROM ITEM D. The following actions were taken: 29 CIT.DISCUSSION: (B. Snowden) ~o RESO/FERRY: (Opposing seasonal disruption of service of the M/V Tustumena) PAGE 30 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 A. Proposed Resolution No. 90-002, opposing the seasonal shutdown of MjV Tustumena ferry service between Seldovia, Homer, Seward and KOdiak, was approved; B. Proposed Resolution No. 90-003, in sup- port of the formation of a citizens ad- visory committee for the Cook Inlet oil industry, was approved; RESO/OIL SPILL (Supporting formation of Cit. Adv. Committee) C.ATTY: ABCB: (Ray's Waterfront) ABCB: (Apollo) c. December 28, 1989, invoice from Wohlforth, Argetsinger, Johnson and Brecht for legal services for December, 1989, in the amount of $1,600.32, was approved for payment; D. ABCB notification of application for renewal of liquor license as filed by RAY I S WATERFRONT BAR & GRILL, was approved without objection; E. ABCB notification renewal of liquor APOLLO RESTAURANT, objection. of application for license as filed by was approved without IX. PUBLIC HEARINGS: None. X. PRESENTATIONS WITH PRIOR NOTICE: None. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None. B. Ordinances for Public Hearing & Enact- ment: ORD/PUB. SAFETY / APPEALS: . 1. Copies having been made available to (Providing for Admin the publ1c, NolI noted by title only a proposed or- Appeals of buil,1ing dinance entitled: & fire inspections) ORDINANCE 628, REVISING TITLE 9, HEALTH AND SAFETY, AND TITLE 12, BUILDINGS AND CONSTRUCTION, PROVID- ING FOR AN APPEAL OF AN ADMINISTRA- TIVE DECISION The Public Hearing was opened. No one spoke in order to be heard and the Public Hearing was closed. I I I 31 PAGE 31 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 SIMUTIS MOVED TO ENACT ORDINANCE 628; THE MOTION WAS SECONDED BY BURGESS. Burgess stated that he had trouble with parag- raph F(5) of the ordinance in that he felt it placed too high a burden on the appellant and that the issue of whether the city's fire rating would be substantially affected was a difficult one to prove. Schaefermeyer indicated that he felt the council could adequately consider the impact on the fire rating as part of the criteria set forth in paragraphs 1-4, and therefore, the Administration would not be opposed to deleting that section. BURGESS MOVED TO DELETE PARAGRAPH F5 OF PROPO- SED ORDINANCE 628; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. Sieminski stated that the time frames provided for in the ordinance should be substantially shortened, and suggested that in Paragraph A, the time be reduced from ten days to three days, that in Paragraph C, the time be reduced to 10 days and that in Paragraph E, the time be reduced to 30 days. Schaefermeyer indicated that reducing the time frame in paragraph A from ten days to three days had the opposite effect intended by Mr. Sieminski (to speed up the appeals process for the benefit of the appellant) in that the appellant would be required to produce his appeal in a very short time period. Councilmember Dunham agreed that three days was too short a time to expect a property owner to prepare a brief. Arvidson indicated a problem with shortening paragraph C to 10 days in that it required a public hearing "at the next regular council meeting" and that due to the schedule of council meetings (2nd and 4th Mondays) there could be as many as 21 days between regularly scheduled council meetings. Also, the code requires at least 10 days public notice of a public hearing and shortening the hearing to ten days after receipt would preclude adequate public notice. Meehan indicated that shorter than 10 days for public hearing was too short, Dunham agreed. Noll requested that the ordinance be ad- ministratively changed to indicate in paragraphs A, C and E that the time periods be "calendar days" (i.e. including holidays) which would have the effect of shortening the process as desired by Sieminski. 32 PAGE 32 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 THE REQUEST TO ADD "CALENDAR" IN PARAGRAPHS A, C, & E, WAS APPROVED WITHOUT OBJECTION AND THE CLERK WAS INSTRUCTED TO INSERT REFERENCES TO "CALENDAR". THE QUESTION WAS CALLED ON THE MAIN MOTION & ORDINANCE 628 WAS APPROVED UNANIMOUSLY. C. Resolutions: RESO/SBH: (Requesting 1. Copies having been made available to Corps of Engineers the public, Noll noted by title only a proposed resolu- study of feasibility tion entitled: of SBH expansion) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REQUEST- ING THE U.S. ARMY CORPS OF ENGINEERS TO CONDUCT STUDIES TO DETERMINE THE FEASIBILITY OF EXPANDING THE EXIST- ING SEWARD SMALL BOAT HARBOR MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 001. THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that the reconnaissance study is funded by the Army Corps of Engineers and can start within 90 days of consent. The only cost to the city would be for the consulting engineers, which is under $10,000. After that, the Corps of Engineers can perform a feasibility study at the request of the city which would require a 50% match in funds from the city. Total cost would be approximately a quarter of a million dollars. Dunham, Burgess and Meehan all spoke in favor of the resolution. Noll thanked Schaefermeyer for aggressively pursuing the opportunity with the Corps of Engineers. THE MOTION WAS APPROVED WITHOUT OBJECTION AND CARRIED UNANIMOUSLY. RESO/PURCHASING: (Lease/Purchase agreement for equipment pur- chase) 2. 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 EXECUTION OF AN EQUIPMENT LEASE/PURCHASE AGREEMENT BY AND BETWEEN THE CITY AND U. S . BANK OF WASHINGTON, NATIONAL ASSOCIATION; AND PROVIDING FOR RELATED MATTERS HILTON MOVED TO APPROVE RESOLUTION 90-004. THE MOTION WAS SECONDED BY DUNHAM. I I I PAGE 33 REGULAR MEETING - JANUARY 8, 1990 VOLUME 25 Schaefermeyer recommended option four from U. S. Bank. The four proposals received were reviewed by city staff, the city's financial advisor and bond counsel. Hilton asked about the rationale for a 15 year amortiza- tion vs. 10 years. Schaefermeyer responded that the 15 year option had a 10 year pre-pay option without penal- ty and that it provided for a lower initial payment. Sieminski preferred 10 years stating that the life of the machine wouldn't exceed 15 years. Schaefermeyer answered that the life of the machine is expected to be well over 20 years. Dunham agreed to the 15 year term but was opposed to the purchase of the travelift believing it won't pay for itself. Meehan was in favor of the proje- ct. THE MOTION WAS APPROVED WITHOUT OBJECTION AND CARRIED UNANIMOUSLY. 3. copies having been made available to the public, Noll noted by title only a proposed reso- lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORI- ZING THE PURCHASE OF A 250-TON TRAV- ELIFT FROM QUALITY EQUIPMENT PRODUC- TS. INC., AUTHORIZED REPRESENTATIVE OF MARINE TRAVELIFT, INC., WITHOUT FULL UTILIZATION OF CITY BID PROCED- URES BURGESS MOVED TO APPROVE RESOLUTION NO. 90- 005, THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that the earlier quoted price was still good despite a manufacturer's increase effective January 1, 1990. There is an anticipated five month delivery with possible use by summer. Hilton asked about the schedule of dock improvements. Diener stated that the proposals were out, and he had received a proposal, but postponed finalizing it until Council had approved purchase of the travelift. He was confi- dent that the cost would be approximately $250,000 to $500,000 for improvements. In answer to a question from Noll about fund sources, Schaefermeyer stated it would come out of bond proceeds, and Diener indicated by a rough estimate that probably $700,000 of the original $1.7 million had been committed and there would be about $1.0 million remain- ing. THE QUESTION WAS CALLED AND THE MOTION WAS APPROVED WITH SIX "YES" VOTES AND DUNHAM VOTING "NO". 33 RESO/PURCHASING: (Travelifr) 34 CLAIM FOR DAMAGES: (Hubbard Claim DENIED) RE- : (Amendment approved) PAGE 34 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 XII. UNFINISHED BUSINESS: None. XIII . NEW BUSINESS: A. Claim for Damaaes as filed by Jim Hubbard for damaaes to F/V Kruzof. SIMUTIS MOVED TO APPROVE CLAIM FOR DAMAGES AS FILED BY JIM HUBBARD; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer stated that he had provided information to the city's insurance adjustors, notifying them of a potential claim. He noted that the claim had been filed & anticipated that it would be investigated by the carriers, therefore he recommended denial of the claim. In answer to a question from Burgess, Deputy Harbormaster Ransom stated that the vessel went through due to weight, which caused an overload on the grid. Dunham stated the councilmembers should receive an insurance report and a report on the condition of the grid as soon as it was available. Schaefermeyer stated they are taking steps to repair the grid and there are bids out. Noll asked if an overall report on the condition of the grid was available and Schaefermeyer replied that the adjustor declined to have it surveyed prior to Hubbard's claim, but now it should become available. THE QUESTION WAS CALLED & THE MOTION FAILED WITH SEVEN "NO" VOTES. B. Amendment to conditions of assianment of Lease. Lot 6. Block 1. Marina Subdivision: from Michael Norman to Howard Johnson. Schaefermeyer asked Council to consider requirements on Mr. Johnson fulfilled so he could approve the assignment of lease. He explained that all previous conditions had been met with the exception of the sales tax payment, which was an obligation of the assignor. Sieminski stated that he would oppose the transfer unless Johnson guaranteed the sales tax Obliga- tions of Norman. Schaefermeyer replied that there was no recourse over Norman because he is in involuntary bankruptcy. Hilton pointed out that at present no revenues were being generated from the property and assignment would at least get a viable business on the property. Simutis agreed. In answer to a question from Noll about the sales tax, Arvidson noted that it would be pursued by the KPB; Noll asked where taxing entities stood in line I I I PAGE 35 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 during a bankruptcy proceeding, Arvidson responded that they stood in front. Meehan expressed concern over earlier problems with access by other property owners. Burgess agreed that access was a problem, but the city had properly platted the properties and that it was a problem for the lessees to resolve. Schaefermeyer indicated that he had just learned that the parties had apparently been work- ing on access and may have resolved it. MEEHAN MOVED TO APPROVE THE ASSIGNMENT OF LEASE; LOT 6, BLOCK 1, MARINA SUBDIVISION, FROM NORMAN TO JOHNSON; THE MOTION WAS SECONDED BY HILTON AND APPROVED WITH SIX "YES" VOTES AND SIEMINSKI VOTING "NO". C. Request for assiqnment of Lease. Lot 6. Block 1. Marina Subdivision: from Howard Johnson to Milos Nikolic. Schaefermeyer stated that Johnson had sold the property to NikOlic, and Nikolic has applied for a conditional use permit. Sieminski added that the alley way should be on the new lease. Noll questioned whether a "subject to" could be added to the lease and Fred answered that the city cannot impose an official "subject to". HILTON MOVED TO APPROVE THE ASSIGNMENT OF LEASE, LOT 6, BLOCK 1, MARINA SUBDIVISION FROM JOHNSON TO NIKOLIC; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. RECESS: The meeting was recessed at 9:00 p.m. and reconvened at 9: 05 p. m. Meehan was excused at this time. A quorum was still present. Noll noted Council's concern with access and congestion issues in the harbor area. He stated that the city would like to be informed of the agreement by the parties for access as this would possibly allay their concerns. Noting that if that did not happen, the Coun- cil would be taking whatever future action might be appropriate to deal with these issues. There was no objection from Council. XIV. CITY MANAGER REPORTS: A. Schaefermeyer reported on the Mt. Redoubt eruption and announced the basketball tournament this week in Seward. Schaefermeyer then gave the floor to Chris Gates for the following reports. B. Chuqach Alaska Corporation Prepavment Aqreement. Gates distributed a draft of the proposed pre-payment agreement with Chugach Forest Products. He 35 RE- : (Assign- ment from Johnson to Nicolic apprvd) 36 PAGE 36 REGULAR MEETING - JANUARY 8, 1990 VOLUME 25 explained that this would provide for guaranteed pay- ments of $250,000 in exchange for a discounted tariff rate. This item would be back to the council for ap- proval at the next meeting of January 22, 1990. Gates reported on the Reqional citizens Ad- visorv Committee. An agreement is forthcoming whereby the organization, now incorporated, will have continued funding and an active role in providing local input into Alyeska's plans and operations. He also stated that a permanent representative from the city of Seward needs to be appointed. Proposed Harbor Tariff Revisions. A draft of the proposed General Cargo and Terminal Tariff that has been in the works for several months was distributed. It will be taken to the Port Development Advisory Commit- tee for review and will be back to the council at its next meeting of January 22, 1990. Chuqach Alaska Lease #5. The draft lease was distributed and Gates reported that this lease might be back for public hearing and approval at the first meet- ing in February. He pointed out that it was a fair market value lease for two years, with the payments to be made at the end of the lease term. Chugach con- templated using the land for log storage in the short term although the city had made it clear that it felt a more intense use would be required for a longer term lease agreement. He also reported that Chugach was working on the development of an additional forest products manufacturing facility, but needed a two year time period for purchase of equipment, financing etc. The city has not committed to Chugach beyond the two year term of the lease. Burgess expressed concern that the lease agreement be closely reviewed by the council. Gates reported on the status of the grain terminal sale. The buyer had been pursuing getting a firm shipping price and Gates reported that this infor- mation would be of substantial benefit to the City even if a sale was not consummated. He also reported that the press coverage of the sale in the Anchorage papers was unfortunate in that it did not include the fact that the circumstances of the sale had dramatically changed since the sale in that the grain cars and the terminal facilities had been disposed of by the state precluding the City's ability to develop the terminal ih Seward. He reported, in response to questions from Burgess, that he anticipated the $10,000 payment to be made shortly. xv. COUNCIL DISCUSSION: 37 PAGE 37 REGULAR MEETING - JANUARY 8. 1990 VOLUME 25 I Sieminski indicated a desire for the council to discuss and review the city attorney's performance. Noll pointed out that the council directly supervises three people, the city Manager, the city Clerk and the city Attorney, and that it would be appropriate to meet for discussion with the city Attorney as that had not been done for some time. Since those discussions would out of necessity involve discussion of pending litigation, it would be appropriate to do so in execu- tive session at the next regularly scheduled council meeting. Burgess asked if it would be appropriate to place a gate across the syncrolift breakwater to dis- courage people from walking out on it. Dunham asked about the renovation of City Hall. Schaefermeyer responded that the city had been disap- pointed in the contractor's performance and would proba- bly be asking the bonding company to finish the project as liquidated damages had not brought about completion. I Noll expressed his pleasure that Resolution 90-001 had dealt with the new Small Boat Harbor and that this was a good omen for the city. XVI. CITIZENS' DISCUSSION: A citizen asked about Chugach's plans for moving logs from Ninilchik to the City. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM MENTS: Schaefermeyer responded that as far as he knew they would be trucked. Gates pointed out that he under- stood the trucking wouldn't take place during the heavy summer tourist seasons. Diener reported that this might be a good time to remind the State of the City's concern with the intersection of Nash Road and the Seward Highway. XVIII. ADJOURNMENT: The meeting was adjourned at 9:45 p.m. ~~ Secretary Mayor ,.,,... ft it J PAGE 38 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 I. CALL TO ORDER: The January 22, 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: Acting City Clerk Jones 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: ci ty Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Engineer- ing and utilities Manager Diener, Port Marketing Direc- tor Gates, Finance Director Gif- ford, Assistant Finance Director Bagierek, Harbormaster Single- ton, Librarian NicOlas, Police Chief Bencardino and Acting City Clerk Jones IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE JANUARY 8, 1990, 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 MEEHAN AND CARRIED UNANIMOUSLY. SIEMINSKI MOVED TO HOLD AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE REGULAR MEETING TO DISCUSS LEGAL AND PERSONNEL MATTERS. THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Borough Representative Sewall was not present and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: GARRETT SCHNELL, Midtown Apartments, # 12, spoke regarding the fact that he had received notice of a I I I PAGE 39 REGULAR MEETING - JANUARY 22. 1990 VOLUME 25 possible termination of a lease between the city of Seward and Seward Ship's Chandlery (SSC). He noted that he was before the Council on behalf of James Pruitt who was out of the state on vacation. He stated that he would like to reserve further comment for when the public hearing date was set. At the request of Meehan, Arvidson explained that he had received a call from the attorney repre- senting SSC who was concerned that the Council would terminate the lease immediately. Arvidson assured him this was not the case. The Council was presently acting on the decision of whether to mail a letter of notice of termination to SSC because of a default on the terms of the lease. He stated that once the letter was sent, a public hearing would be scheduled, possibly for the second meeting of February. Dunham suggested that since most of the employees from SSC were present, they should be allowed to speak to the issue. Schnell informed the Council that he had just received the agenda in the mail today, but on short notice he would like to address the Council on certain problems SSC was experiencing while in default. Noll stated that discussion would be deferred until the item came up under New Business, Item D., later in the meeting. At that time, public testimony would be heard. VIII. APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-006, awarding a contract for construction of SMIC dolphin moorages and repairs at the Small Boat Harbor, was approved; B. Proposed Resolution No. 90-007, authori- zing the purchase of an electric switch for SCCC without full utilization of city bid procedures, was approved; 39 RESO/CON- (Contract struction phins) RESO/PURCHASINC/ PRISON: (Elec.Switch) /SHIC: for con- of dol- Invoice from Perkins Coie for legal C.ATTY: services for November, 1989, in the amount of $9,643.42, was approved for payment; C. D. January 16, 1990, memorandum from En- gineering & utilities Manager Diener (0 CON- : (Change Order approved) ABCB: (Niko's) PUBLIC HEARING: (Terminal Tariff) - PAGE 40 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 requesting authorization for a Cha- nge Order to H2W for electrical finish work at the SCCC-prison In- dustries Building NTE $110,000, was approved; E. ABCB notification of application for renewal and transfer (MILOS & BARBARA NIKOLIC & SEWARD LONGSHOREMEN'S BENEVO- LENT ASSOC.) to MILOS NIKOLIC & SEWARD LONGSHOREMEN'S BENEVOLENT ASSOC. ) of liquor license as filed by NIKO'S NIGHT- CLUB was approved without objection; F. January 5{ 1990, memorandum from Engin- eering & utilities Manager Diener noting change orders to H2W Constructors for the Prison Industries Building Project was noted for information; and G. January 17, 1990, memorandum from Fi- nance Director Gifford listing purchase orders issued between $5,000-$10,000 was noted for information. IX. PUBLIC HEARINGS: Notice of public hearing as posted and pub- lished as required by law regarding proposed changes to the general terminal tariff of the city of Seward concerning freight and vessel operations at the City docks and terminal facilities, was noted and the public hearing was opened. No one spoke 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, Noll noted by title only a proposed ordinance entitled: ORDINANCE 629, AMENDING CHAPTER 12.05 OF THE CITY CODE BY ADOPTING NEWLY REVISED UNIFORM CODES MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE 629; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. - ,- .... I I I PAGE 41 REGULAR MEETING - JANUARY 22. 1990 VOLUME 25 Schaefermeyer explained that this was a rou- tine ordinance to update certain Uniform Codes in the Seward City Code. 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, ALASKA, AUTHOR- IZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT WITH XEROX FOR THE PURPOSE OF UPGRADING THE CITY COPIER HILTON MOVED TO APPROVE RESOLUTION NO. 90- 008: THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer stated that Xerox had submitted an unsolicited proposal to upgrade the city's copier. The existing lease agreement on the current copier expires in April at which time the city could purchase the machine and continue to pay a service agreement fee or upgrade to a newer model. He stated that the machine has a high volume of use and would eventually need to be replaced as breakdowns become more frequent. Gifford reported that Xerox was offering a promotional bonus which waives the usage and service agreement fees for the first six months. He stated that the overall cost of the newer model would be higher but the monthly cost was significantly lower than what the city was currently paying. Meehan stated that the current copier was a popular, durable model and he could not support up- grading at this time but possibly two years from now when more problems surfaced. Sieminski agreed stating that the city should go out for proposals when it does replace the copier. Hilton noted that the electronics and parts on copiers do wear out so he could appreciate the need to keep a workable machine at city hall. In answer to a question from Burgess about the life of the machine, Jones stated that the serviceman 41 RESO/PURCHASING: (Xerox Copier) f;' 42 . t RESO/TARIFF: (Terminal Tariff approved) PAGE 42 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 could not give an accurate life of the machine but with the high volume of copying done by the city, the machine is at a high level of use. She noted that the machine would probably last awhile longer but might experience more breakdowns as it gets older. She stated that the newer model was faster and had more features which could save considerable employee time. Simutis stated that she could appreciate the frustration experienced by the city when the copier was broken. Since the copier is used extensively and the city needs to stay ahead on copying information, it is of benefit to everyone for the equipment to be in work- ing order. Overall, the new features should save many hours of labor. In answer to a question from Noll about in- terest fees, Gifford stated that the interest was in- cluded in the base price. Noll suggested that the city should seek proposals from other businesses for com- parison. Schaefermeyer replied that the city had done a thorough investigation four years ago and discovered that the features, reliability, speed and dependability of maintenance offered by Xerox could not be matched. THE QUESTION WAS CALLED AND RESOLUTION NO. 90- 008 WAS APPROVED WITH FOUR "YES" VOTES AND MEEHAN, NOLL AND SIEMINSKI VOTING "NO". 2. Copies having been 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, ADOPT- ING GENERAL TERMINAL TARIFF NO.1, NAMING RULES, CHARGES, AND REGUL- ATIONS FOR THE CITY OF SEWARD CITY DOCKS AND TERMINAL FACILITIES MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 009, THE MOTION WAS SECONDED BY DUNHAM. Gates reported that a general tariff was needed for city docks and terminals to reflect on a fairness to all shippers, merchants, etc. He stated that the Small Boat Harbor tariff has governed all docks to this point. He went through and explained the dif- ferent sections of the proposed tariff. Meehan stated that the Port Development Com- mittee had gone over the tariff and recommended ap- proval by the Council. I I I PAGE 43 REGULAR MEETING - JANUARY 22. 1990 VOLUME 25 Dunham noted that the tariff had also been presented to the Trade Board, but since a quorum was not present, it should be reviewed further. Burgess was concerned that all the problems should be ironed out before the tariff was approved. simutis stated her support for the tariff, noting that input had been given by a number of commit- tees, citizens and affected people; and the city attor- ney and administration had reviewed it extensively over the past year. Arvidson stated that once the tariff was in place, changes could be made at any time necessary. RECESS: THE MEETING WAS RECESSED AT 8: 45 P. M. AND RECONVENED AT 8:56 P.M. Schaefermeyer reported that he would be pro- posing a rate change when the Small Boat Harbor Tariff comes before the Council at a later date. Hilton voiced his concern regarding sUb-para- graph 3 of Page 29 of the tariff regarding the no-refund pol icy should a vessel owner be required to move his vessel at the Harbormaster's request. He stated that there should be an appeals process if the vessel was required to leave. At the request of Mayor Noll, minor language changes were made on page 31, (iron or steel was en- closed in parentheses) and page 32, ("by the city Coun- cil of the city of Seward" was inserted following "ap- proval") to clarify the meanings. Dunham stressed the importance of changes to be made in the future and Hilton requested a progress report in three months. THE QUESTION WAS CALLED AND THE MAIN MOTION CARRIED UNANIMOUSLY 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, APPRO- VING A PREPAYMENT AGREEMENT BETWEEN THE CITY AND CHUGACH FOREST PRO- DUCTS, INC. 43 RESO/CON- (Prepayment agrmt w/Chugach Forest Products) II. ,~ ; PORT COHHITTEE: (J. Scoby apptd) REG.CIT.ADV.COMM: (Gates apptd.) -I' . !,;: , ~ .. " :"c.. ,. J40 .' ~.. l.-- ~ ~ .... ,,-,' ~~ .. PAGE 44 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 HILTON MOVED TO APPROVE RESOLUTION NO. 90-010; THE MOTION WAS SECONDED BY SIMUTIS. - ~ ~ In answer to a question from Hilton on tonnage charges, Gates explained that when the tonnage exceeds 180,000 tons, (paid for in advance by quarterly pay- ments), Chugach will be invoiced by the city on a month- ly basis at $.50 per ton over a twelve month period. RESOLUTION NO. 90-010 WAS APPROVED BY UN- ANIMOUS VOTE OF THE COUNCIL. XII. UNFINISHED BUSINESS: None. XIII. ,. NEW BUSINESS: A. Appointment of Jack Scobv to the Port Development Advisorv Committee. SIMUTIS MOVED TO CONFIRM THE MAYOR'S APPOINT- MENT OF JACK SCOBY TO THE SEWARD PORT DEVELOPMENT COM- MITTEE; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. . B. Appointment to the Reqional citizens Advisorv Committee. In answer to a question from Council, Gates stated that he had spent one day per week as chairman of the temporary committee but could not commit that time on a permanent basis. Burgess asked if the costs and labor for time spent on this project were reimbursable to the city. Gates explained that costs less time would be reimbursed. HILTON MOVED CONTINUE TO SERVE ON REPRESENTATIVE FOR THE SECONDED BY SIMUTIS. TO AUTHORIZE CHRIS GATES TO THE RCAC COMMITTEE AS INTERIM CITY OF SEWARD; THE MOTION WAS SIMUTIS MOVED TO AMEND THE ORIGINAL MOTION BY APPROVING THE CITY'S RECOMMENDATION THAT THE CLERK ADVERTISE FOR LETTERS OF INTEREST AT A LATER DATE. THE MOTION WAS SECONDED BY DUNHAM. THERE WAS NO OBJECTION FROM COUNCIL. THE MAIN MOTION AS AMENDED WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. Hilton suggested that Gates should remain interim representative until a contract is signed and the committee is permanently established. Dunham con- curred. .... ....t:' I I I PAGE 45 REGULAR MEETING - JANUARY 22. 1990 VOLUME 25 " .... .:..h) c. citv expenses relatinq to the December 5, ELECTIONS: (Holland 1989. special election contest. ordered to pay 1/2 cost of spec.elec. contest) Schaefermeyer recommended that Mr. Holland pay the entire cost of the election as stated in Section 4.05.135(E) of the City Code which holds the contestant of an election liable for all costs. He noted that Council could, however, set whatever requirement they wanted to impose. Arvidson noted that most contestants have been allowed forgiveness of some costs according to research done but it was ultimately a policy decision for the Council to make. Dunham stated that she would like to see the money recovered but she could not see imposing extra costs. Meehan stated that this was a special situa- tion where seven votes were mistakenly left uncounted. He noted that although the wording on the ballot may not have been clear and concise, there was not a "corrupt election practice". simutis stated that she could agree to forgive a portion of the cost but the city should not have to foot the entire bill. Sieminski felt that the city should absorb the cost since the issue was not on the regular election ballot and a special election had to be held. Hilton stated that the majority of the Council had voted to close the bars early. He noted that this was a well publicized issue and a person must realize the risks involved when contesting an election. HILTON MOVED TO APPROVE THE RECOMMENDATION OF THE ADMINISTRATION TO SEEK PAYMENT OF $6,546.36 FROM MR. HOLLAND LESS HIS $1,000 CASH BOND FOR THE COST OF THE CONTEST OF THE DECEMBER 5, 1989, SPECIAL ELECTION. THE MOTION WAS SECONDED BY SIMUTIS. DUNHAM MOVED TO AMEND THE MOTION BY SPLITTING THE COST ON A 50-50 BASIS BETWEEN THE CITY AND MR. HOLLAND. THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. THE QUESTION WAS CALLED ON THE MAIN MOTION AS AMENDED AND CARRIED WITH SIX "YES" VOTES AND SIEMIN- SKI VOTING "NO". Burgess noted for the record that he did not want a precedent set for future elections. 46 '- RE- /SHIPLIFT: (Notice of pos. termination of agreement with Seward Ships Chandlery) . ~.. . ~. PAGE 46 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 RECESS: THE MEETING WAS RECESSED AT 10:20 P.M. AND RECONVENED AT 10:28 P.M. D. Notice of possible termination of the lease aqreement and shiplift interim use permit with Seward Ship's Chandlerv. Schaefermeyer explained that a draft letter to SSC regarding possible termination of the lease agree- ment and shiplift interim use permit was included in the packet. The purpose of sending the letter is to reaf- firm the notice of default which was sent on November 3, 1989, to SSC of which no response was received; and to notify SSC of a hearing to be scheduled at the February 26, 1990, Council meeting to hear testimony from SSC or its counsel before making a decision on termination of the lease and interim use permit. He noted that the administration was awaiting direction from the Council on whether to send the letter after review. NOLL OPENED THE FLOOR FOR PUBLIC COMMENT AT THIS TIME. Garrett Schnell, Midtown Apartments, #12, spoke about the difficulties SSC was having meeting deadlines due to a number of factors including monthly reporting, payroll conversion to computer, late arrival of wheel and cradle assembly parts and the impact from the oil spill. He noted that SSC employs a number of people and has contributed to Seward and its economy in many ways. He assured the Council that all reports required by section 4 of the lease would be submitted to the city by February 10, 1990. He requested that Council delay sending the letter as it may jeopardize negotiations between SSC and the bank for future financing. NO ONE ELSE SPOKE IN ORDER TO BE HEARD AND THE PUBLIC COMMENT SESSION WAS CLOSED. Meehan stated that he wanted to see the busi- ness thrive and jobs remain intact but at the same time the city had to protect itself in view of the many accidents that had happened recently on the shiplift. He noted that sending the letter should not jeopardize financing or jobs at this point. He also pointed out that if SSC was in compliance, there would be no need for a public hearing. Dunham stated that she could support a delay of the letter and give SSC another chance to correct the defaults. Burgess commented that the lease has certain requirements which must be met and the City had already granted a 60 day extension on the lease which was up I I I 47 PAGE 47 REGULAR MEETING - JANUARY 22. 1990 VOLUME 25 three months ago. He cited potential safety problems with the recent occurrence of accidents. In answer to a question from Sieminski, Schae- fermeyer stated that if SSC has the cradles in place by February 26, the City will have time to conclude final installation of the rails and be ready for an inspection by Lloyd's by March 15, 1990. The shiplift could then be operated as intended and no repairs would be made on the platform. Hilton voiced his concern that SSC had not met the deadlines of the lease requirements. BURGESS MOVED TO SEND THE LETTER TO SSC AFTER CHANGING THE HEARING DATE FROM FEBRUARY 26, 1990, TO MARCH 12, 1990, AND CHANGING THE DEADLINE FOR SUBMITTING INFORMATION TO MARCH 7, 1990. THE MOTION WAS SECONDED BY SIMUTIS. MEEHAN MOVED TO AMEND THE MOTION AND DELAY SENDING THE LETTER UNTIL FEBRUARY 7, 1990; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. THE MAIN MOTION WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. XIV. CITY MANAGER REPORTS: Schaefermeyer stated that he, Councilmember simutis and Engineering & utilities Manager Diener would be in Juneau on Wednesday and Thursday to meet with the legislators and lobbyist Dawson to discuss capital priorities for Seward. Gates introduced Bill Price and Katherine Thomas representing Price-Chen, the purchasers of the grain terminal. Mr. Price stated that his company was in the process of establishing costs for financing, modifications and shipping of the grain terminal com- ponents and expressed the need to have a full set of plans included in the purchase before the final deal could be consummated. In response to a question from Noll, Gates reported that they were in the process of possibly acquiring a set of plans from the state archives or possibly the design engineer from Minnesota. He stated that the city had received an incomplete set of plans which had been included when the components were pur- chased from the State of Alaska. He noted that the cost of acquiring the plans would be reimbursed by price- Chen. XV. COUNCIL DISCUSSION: 48 PAGE 48 REGULAR MEETING - JANUARY 22, 1990 VOLUME 25 its 20th the grief Noll stated that AVTEC would be celebrating anniversary on February 16. He also expressed the community felt concerning Dale Clemens. XVI. CITIZENS' DISCUSSION: None. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS I COM- MENTS: None. XVIII. ADJOURNMENT: The meeting was adjourned at 11:43 p.m. The Council reconvened in executive session following a short recess. -Q~Q-~ ~ Patricia Jones Acting city Clerk (Cit,~jt~~<,:,-<..- ,\- Ot Sfu. ~ ,'.- --\ . .,.. ry~ (<;;.. /~':;-;,.'iP~""4i-f.l() \ ":~ ....' 'e, , -.. " ~ SEAL .. ~~ william C. Noll ' Mayor I I I 49 -------------------------------------------------------- PAGE 49 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 I. CALL TO ORDER: The February 12, 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 Attorney Arvidson led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Dunham, Meehan, Hilton arrived (Burgess and excused) . Councilmembers and Sieminski. at 7:35 p.m. simutis were Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Finance 50 PAGE 50 REGULAR MEETING - FEBRUARY 12. 1990 VOLUME 25 Director Gifford, Assistant Finance Director Bagierek, Engineering & utilities Manager Diener, Electrical Engineer Anderson, Librarian Nicholas, Police Chief Bencardino , Hospital Administrator Campbell, Port Marketing Director Gates and Acting City Clerk Jones IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE JANUARY 22, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer requested the deletion of Item C (2), Resolution 90-014. from the regular meeting agenda. DUNHAM MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIEMINSKI AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Assembly member Jonathan Sewall reported on the February 6, 1990, Borough Assembly meeting held in Soldotna, He stated that an ordinance regarding sales tax on gaming was ready for introduction at the next assembly meeting, but non-profit and education groups would be exempt from the sales tax. He noted that the assembly had enacted Or- dinance 90-01, appropriating federal grant funds for senior citizens and Seward would receive a little over $15,000 form this appropriation. Sewall reported that he had sponsored an ordinance to be introduced at the next meeting to regulate the hours of liquor establishments outside cities in the Kenai Peninsula Borough. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: VII. None. VIII. APPROVAL OF CONSENT CALENDAR: The Chair ruled that Hilton would abstain from voting on Item A. MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. The following actions were taken: I I I PAGE 51 REGULAR MEETING - FEBRUARY 12. 1990 VOLUME 25 A. Proposed Resolution No. 90-011, ap- propriating additional sales tax contribu- tions to Seward General Hospital, was approved; B. Proposed Resolution No. 90-012, authoriz- ing the destruction of certain public records was approved; C. January 30, 1990, invoice form Perkins Coie for legal services through December, 1989, regarding Seward Ship's Chandlery in the amount of $609.42, was approved for payment; D. Schedule December Director tion; of city investments through 31, 1989, as prepared by Finance Gifford was noted for informa- E. February 5, 1990, memorandum form Assis- tant City Manager Yanez concerning animal control measures and concerns was noted for information; F. February 7, 1990, memorandum from City Manager Schaefermeyer and City Attorney Arvidson requesting that a public hearing be reconvened with the Council acting as the Board of Adjustment on the appeal by Seward Associates of the decision of the Seward Planning and Zoning Commission regarding the Irick Conditional Use Permit, was scheduled for PUBLIC HEARING for February 26, 1990. G. ABCB notification of application for renewal of liquor licenses as filed by BPO ELKS *1773, BREEZE INN, DREAMLAND BOWL, GATEWAY LIQUOR & FOOD MART, HARBOR DINNER CLUB, PEKING CHINESE RESTAURANT, THORN'S SHOWCASE LOUNGE, AND THE WHEELHOUSE was approved without objection; H. Notice of application for permit for games of chance and skills filed by Marathon Homemakers, Seward International Friend- ship Association and Wes Gen Hospital Auxiliary, was noted for information; I. February 6, 1990, memorandum form Finance Director Gifford listing purchase orders between $5,000 and $10,000 was noted for information; 51 RESO/SGH: (Approp. sales tax rev.) RESO/RECORDS RETEN. (Auth. destruction of certain city records) C.ATTY: ABCB: GAMES OF CHANCE & SKILL: 52 PROCLANATION: (AVTEC Day) CIT.DISCUSSION: (N.Anderson - Water line extension to Anderson Seafoods) ORD/BUILDING DEPT: (Adopting new Uniform Codes) PAGE 52 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 J. Proclamation of the Mayor proclaiming February 16, 1990, as Alaska Vocational Technical Day, in the City of Seward was noted for information. IX. PUBLIC HEARINGS: None. X. PRESENTATIONS WITH PRIOR NOTICE: A. Presentation bv Margaret Anderson reqardinq a water line extension to serve Anderson Seafoods on Lowell Point Road. Delayed until later in the meeting. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: 1. Copies having been made available to the public, noll noted by title only a proposed or- dinance entitled: ORDINANCE NO. 630, AMENDING SECTION 9.15.110 OF THE SEWARD CITY CODE, ADOPTING THE UNIFORM FIRE CODE, 1988 EDITION HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 630; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. Schaefermeyer discussed two minor amendments to the proposed code. The first one changes the water main distance form 150 feet to 250 feet. The second extends the time for inspection requirements form six months to twelve months to conform to state require- ments. B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Noll noted by title only a proposed or- dinance entitled: ORDINANCE NO. 629, AMENDING CHAPTER 12.5 OF THE CITY CODE BE ADOPTING NEWLY REVISED UNIFORM CODES Notice of public hearing as posted and publi- shed as required be law regarding proposed Ordinance No. 629 was noted and the public hearing was opened. No one spoke in order to be heard and the public hearing was closed. I I I PAGE 53 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 Schaefermeyer stated that this was a house- keeping ordinance to adopt the latest uniform codes. MEEHAN MOVED TO ENACT ORDINANCE 629: THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. C. Resolutions: 1. Copies having been mad 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, COM- MEMORATING THE SEWARD LAGOON BOARD- WALK IN MEMORY AND HONOR OF DALE CLEMENS Noll read aloud Resolution No. 90-013. Meehan stated that Dale had been elected chair of the Port Development Committee. The idea of naming the boardwalk was brought up by Bob Valdatta. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 013: THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: None. XIII. NEW BUSINESS: 53 RESO/BOARDWALK: Lagoon Boardwalk commemorated in memory of Dale Clemens Appointment of Planning and Zoninq Commis- P&Z: c. THorne & S1oners. J. Parrish apptd to P&Z. A. Mayor Noll recommended the appointment of Chester Thorne and Jim Parrish to the Seward Planning and Zoning Commission for three year terms to expire February, 1993. He noted that Margaret Branson had asked that her application be withdrawn at this time. MEEHAN MOVED TO CONFIRM THE MAYOR'S APPOINT- MENT OF CHESTER THORNE AND JIM PARRISH TO THE SEWARD PLANNING AND ZONING COMMISSION FOR THREE YEARS; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. Claim for Damaqes as filed by Communica- CLAD! FOR DAMAGES: (Comm. North Claim DENIED) B. tions North. HILTON MOVED TO APPROVE PAYMENT OF $843.74 TO COMMUNICATIONS NORTH FOR DAMAGES TO ELECTRICAL EQUIP- MENT. THE MOTION WAS SECONDED BY DUNHAM. 5(: PAGE 54 REGULAR MEETING - FEBRUARY 12. 1990 VOLUME 25 Hilton asked if the damage has occurred when a compression connector came loose. Electrical Engineer Anderson stated that the neutral circuit had opened which was commonly caused by weather (ice or snow buildup) or impact to the pole. The circuit had been inspected and it was found to be an aging connection but was not caused be negligence on the city's part. He stated that over-voltages and under- voltages con occur when the neutral is open. In answer to a question about surge suppres- sors, Anderson replied that they would have taken care of any over-voltage. the city. poles had Meehan asked how many neutral circuits were in Anderson stated that all the overhead service neutral circuits. Meehan stated that the city should try to check the poles more often if possible. He realized that the city had notified electric customers about using surge protectors. He said he felt bad about denying electri- cal claims such as this but was obligated to follow the city code. He hoped that the city would have this problem solved some day. Dunham concurred. Schaefermeyer explained that the code provides that the city is not responsible for consequential damag- es from "Acts of God: or natural disasters. In the past, the practice has been to deny the claim when the damage was not caused by the negligence of the city. Noll stated that many claims had been denied in the past, but he felt that this claim was different. Anderson stated that a maintenance program is already in force where old connectors are replaced when work in being done in the area. Spot checks are done while the lineman is on the pole. Schaefermeyer stated that this was a policy decision for the Council to make but according to code, these types of claims are not paid. THE QUESTION WAS CALLED AND THE MOTION FAILED WITH THREE "NO" VOTES AND NOLL AND SIEMINSKI VOTING "YES". XIV. CITY MANAGER REPORTS: I I I 55 PAGE 55 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 Schaefermeyer stated that will Josey, with 33 years of experience, had been hired as the new Parks and Recreation Director and would report for work on Februa- ry 26 1990. He was Anchorage Municipal Parks & Recrea- tion Director of the Sports Division for the past six years and recently was the director of the Spenard Recreation Center. He reported that four years age, the of Seward had spearheaded an effort to obtain a customs port of entry but was unsuccessful. A borough-wide campaign was then launched with the support of Home, Kenai, Seldovia and Soldotna to obtain a customs port of entry for the Kenai peninsula Borough. That effort was successful with the help of the Borough Assembly, Borough Mayor Gilman, and U. S. Senator Ted Stevens. The Kenai peninsula Borough was permitted to become a port of entry to serve the airports and ports of the borough. A federal position was created for a full time employee to work in Kenai at the cost of $80,000 for the first year. He noted that a person with 15 years of experience would assume this position. He stated that the Economic Development District had requested appropriations form the above cities for reimbursement to the federal gover- nment and he would split the balance and that Kenai was providing office space at the airport as an in-kind donation. In answer to a question why Seward paid more, Schaefermeyer replied that Seward had spearheaded the effort and agreed to pay $30,000 towards the effort. He noted that having a customs port of entry could cut down the expense at our local port of immigration and agricu- lture. xv. COUNCIL DISCUSSION: SIEMINSKI requested a personnel report listing the number of permanent and temporary employees to be put on the consent calendar. nolI stated that a monthly report could be possible. SCHAEFERMEYER stated that he would prefer to give a quarterly report during the time the budget is reported. ing was month. it. DUNHAM asked how the employee incentive pI ann- coming along recognizing an employee of the Schaefermeyer stated that Yanez was working on NOLL noted that AVTEC was celebrating anniversary on Friday, February 16, and that he reading the proclamation naming February 16 VOCATIONAL TECHNICAL CENTER DAY." its 20th would be "ALASKA 56 PAGE 56 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 NOLL presented to the Council a request for approval for he and Schaefermeyer to travel to Washingt- on D.C. next week with Chugach Alaska Chairman Edger Blatchford to speak on the Prince William sound oil spill and the proposed institute. He stated that there was an excess of $15 million to support this and he wanted to speak about IMS and possible science foundation support. He noted that much information and research on the oil spill had been derived from the Seward Institute of Marine Science. Schaefermeyer stated that it would cost about $4,500 for the trip. DUNHAM voiced her approval stating that Seward has always fought for what it gas received and now was not the time to quit. She stated that Seward needs to push for IMS. She stated that Seward needs to push for finds for IMS. There was no objection from the Council. NOLL stated that the National Science Founda- tion was looking for a wet lab and IMS was a good can- didate for such a project. He noted that this was the kind of thing he would be pushing for in D.C. XVI. CITIZENS' DISCUSSION: JEFF SAIN introduced himself to the council stating that he would be working at the Seward command center for the U.S. Coast Guard for the Exxon oil spill. He was welcomed by the Council. GARRETT SCHNELL, Seward Ships Chandlery gave his latest reports to the Council on the progress of the cradles and wheels assemblies at the shiplift. He submitted a certified payroll for January, 1990 and stated that SSC was prepared to haul vessels of barges at this time. He noted hat by the end of the week, SSC would have the capability to haul a capacity of 400 tons. SCHAEFERMEYER stated that he notified SSC of the city's request for clearance of the shiplift plat- form by March 15 to allow the city to complete position- ing of the rails and level the platform to prepare for testing of the rails and SSC cradles which would then be classed and certified by Lloyd's. He noted that the city hoped to have load testing of the transfer system completed by March 20, weather permitting. SCHNELL stated that sse would like to work with the administration to resolve any existing problems, stating that he would like a clarification of the term "weather permitting". RECESS: The meeting was recessed at 8: 42 p.m. and reconvened at 8:50 p.m. I I I 57 PAGE 57 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 MARGARET AND RHONDA ANDERSON, Anderson Seafoo- ds, arrived at this time and gave their presentation to the Council regarding extension of the water line to Anderson Seafoods on Lowell Point Road. MARGARET ANDERSON stated that she had paid for the installation of a water line extension to her seafood procession plant on Lowell Point Road at the cost of about $70,000. She noted that with the expansion, she had received pressure from DEC to hook up to city water. She stated that the line had been installed over the winter months to DEC specs at a high cost and asked the council for financial assistance to defray some of the cost. She stated that at the time she agreed to have it installed she was under the impression that the city does not pay for water line extensions. SCHAEFERMEYER stated that the city normally explains the code provisions to anyone wishing to in- stall a water main extension. The code provides that once the lines is built at the owner's expense, the city will accept ownership and maintain the line. SIEMINSKI stated that the city has worked with new businesses just starting so why not help out an established business which has served Seward since 1970. DUNHAM concurred stating that we should keep it fair for all. MEEHAN abstained on the issue since he is employed be a leading competitor of Anderson's. HILTON noted that the line ties in where the IMS and the dock area are. NOLL requested that the administration sit down and negotiate terms on the cost of the water line with Anderson Seafoods. RHONDA ANDERSON stated that she would ap- preciate whatever was available and whenever. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM MENTS: SCHAEFERMEYER stated that a public meeting was scheduled in the Council Cambers for February 20 to receive comments on the Alyeska Oil Spill Contingency Plan. The time was to be announced later. 58 PAGE 58 REGULAR MEETING - FEBRUARY 12, 1990 VOLUME 25 XVII I . ADJOURNMENT: The meeting was adjourned at 9:15 p.m. ~~~ ~~ ~~~tricia Jones ...y~~" ?\Jf~.{-<<~City Clerk ~ ~ ,JI" -...~t~ ! CJ::t (~q all ~ . { SEAL.:. ~ . -- . p ........~ ~"':: t d' ....~~ 1. \~"" ,.. l'ifrf' 'OF '~l-~ GE 58 William C. Noll Mayor REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 I. CALL TO ORDER: The February 26, 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: Councilmember Simutis led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Dunham, Hilton, Meehan, Siemin- ski and Simutis (Burgess was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Port Market- ing Director Gates, Deputy Fire Chief Squires, Finance Director Gifford, Assistant Finance Director Bagierek, Parks & Recreation Director Josey, Librarian Nicolas, Administra- tive Assistant Martin, Police Chief Bencardino and Acting City Clerk Jones IV. APPROVAL OF MINUTES: I I I PAGE 59 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 HILTON MOVED TO APPROVE THE FEBRUARY 12, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: THE REGULAR MEETING AGENDA WAS APPROVED AS PRESENTED BY UNANIMOUS CONSENT OF THE COUNCIL. VI. BOROUGH ASSEMBLY REPORT: VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: SCOTT LUST, 1318 Seward Highway gave a report on the Seward Port Development Committee. He noted that the committee had unanimously voted to recommend that the east parking lot at the small boat harbor be changed from a twelve hour to a four hour parking lot. He stated that the Committee was concerned about the large number of tourists expected this year for day cruises. He ex plained that the existing float system was not built to accommodate a large number of people and suggested that a loading type dock be built for the day cruise pas- sengers. 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: A. February 14, 1990, invoice from Perkins Coie for legal services through January 31, 1990, regarding Seward Ship's Chand- lery, in the amount of $322.59 was approved for payment; B. February 21, 1990, memorandum from Engineering & Utilities Manager Diener regarding the wholesale power sales agreement between the City and Chugach Electric Association was noted for information; C. 59 , " CIT. DISCUS;'SION: (Scot\:i, "Lust =-Port Dev. Committee Re- port) C.ATTY: ABCB notification of application for ABCB: (Pioneer Bar renewal of liquor licenses as filed by &T;'ny's Bar) PIONEER BAR, TONY'S BAR and TONY'S LIQUOR STORE was approved without objection; 60 GAMES OF CHANCE & skilD. SGH: (Quarterly E. Financial Report presented to Council) PROCLAMATIONS: F. IX. PAGE 60 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 Notice of application for permit for games of chance and skill as filed by V. F. W. POST #10246, SEWARD LIFE ACTION COUNCIL and ALASKA INFORMATION RADIO READING & EDUCATION SERVICE, was noted for informa- tion; February 6, 1990, memorandum from Hospi- tal Administrator Campbell, submitting FY 1990 2nd quarter financial reports for Seward General Hospital was noted for information; Proclamations of the Mayor were noted for information as follows: Proclamation dated February 21, 1990, proclaiming Bob McCabe as outstanding educator and civic prom- oter in the city of Seward and Alas- ka Proclamation dated February 21, 1990, proclaiming February 19-23 as Kenai Pen- insula District 4-H Showcase Week PUBLIC HEARINGS: A. Notice of public hearing, as posted and published as required by law, regarding APPEAL HEARING by the City Council acting as the board of adjustment on the appeal of the denial of the conditional use permit as filed by Frank Irick of Seward Associates to con- struct a 24 unit apartment complex on Lot lA, Jesse Lee Heights Addition No.4 (Plat #89-18 recorded 06/26/89), was noted. BOARD OF ADJUSTMENT: (Irick/Seward Associates) MAYOR NOLL DECLARED A CONFLICT OF INTEREST SINCE HIS RESIDENCE IS WITHIN 300' OF SAID PROPERTY AND STATED THAT HE WOULD ABSTAIN. The gavel was passed to Vice Mayor Hilton to Chair the appeal hearing. HILTON RULED THAT COUNCILMEMBER SIEMINSKI WOULD ABSTAIN SINCE HE ALSO HAD A CONFLICT OF INTEREST BECAUSE HE OWNED PROPERTY WITHIN 300 FEET OF THE SUBJECT PROPER- TY. Hilton noted that the appeal record was incom- plete at this time. He stated that a partial transcript I I I PAGE 61 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 of the November 2, 1988, Planning Commission meeting and the transcript of the action taken at the February 27, 1989, meeting of the City Council needed to be included in the record. He recommended that the hearing be post- poned until the March 12, 1990, meeting. MEEHAN MOVED TO POSTPONE THE APPEAL HEARING UNTIL THE MARCH 12, 1990, REGULAR MEETING; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FOUR "YES" VOTES AND NOLL AND SIEMINSKI ABSTAINING. 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: ORDINANCE NO. 630, AMENDING SECTION 9.15.110 OF THE SEWARD CITY CODE, ADOPTING THE UNIFORM FIRE CODE, 1988 EDITION Notice of public hearing as posted and pub- lished as required by law regarding proposed Ordinance No. 630, was noted and the public hearing was opened. No one spoke in order to be heard and the public hearing was closed. Schaefermeyer explained that this was a rou- tine housekeeping ordinance to adopt the latest uniform fire code. SIMUTIS MOVED TO ENACT ORDINANCE NO. 630; 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, APPRO- 61 ORD}FIRE DEFT.: (Adopting Uniform Fire Code-1988) RESO/SGH: Amending Hospital Budget) 62 PAGE 62 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 VING BUDGET REVISIONS TO THE FY 1990 HOSPITAL ENTERPRISE FUND Keith Campbell, Hospital Administrator, stated that the budget revisions requested reflect the changes in the accounting methods of the hospital. He noted that the hospital had experienced growth in services and payroll due to the oil spill. Mary Mastascusas, Hospital Financial Consul- tant, stated that the revenues, as well as expenses, of the hospital had increased. She mentioned that the hospital was purchasing more equipment utilizing dif- ferent funding sources so they were not having to use the operating funds. In answer to a question from Dunham, Mastas- cusas stated that Exxon was reimbursing the hospital for two temporary, full-time employees. She noted that the billing for bad debts would be submitted to Exxon for their review and possible reimbursement. Sieminski asked about medical services for Spring Creek Correctional Center. Campbell stated that the hospital provides limited services such as physical therapy and X-rays, but the biggest impact on the hospi- tal is from the influx of new citizens into Seward. In answer to a question from Noll about medi- care, Campbell stated that seventy percent of hospital costs are covered by medicare but the other thirty percent is absorbed by the private paying citizen and insurance. Noll stated that the community needs to support the hospital to ensure quality health care. Campbell stated that recruitment efforts were ongoing. He stated that the hospital board had formed a recruitment committee and expressed the need for community wide help to recruit professional medical staff. He noted that a new hospital would attract new physicians to the area. HILTON ABSTAINED ON VOTING DUE TO A CONFLICT OF INTEREST AS AN EMPLOYEE OF THE HOSPITAL. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-016; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY WITH HILTON ABSTAINING. 2. Copies having been made available to the public, Noll noted by title only a proposed resolution entitled: I I I PAGE 63 VOLUME 25 REGULAR MEETING - FEBRUARY 26, 1990 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AP- PROPRIATING FUNDS TO SUPPORT A KENAI PENINSULA AREA WIDE CUSTOMS PORT OF ENTRY OFFICE Schaefermeyer reported that negotiations on the agreement for the customs port of entry office were pending between Kenai peninsula Borough Mayor Gilman and the customs office. He stated that no funds would be advanced until the agreement was signed and put into effect. In answer to a question from Hilton about reimbursement through user fees, Schaefermeyer stated that if the customs office proved to be successful enough, in time the city's contribution could be reduced by activity generated through the customs office. He could see it as possibly becoming self sustaining but not revenue producing. HILTON MOVED TO APPROVE RESOLUTION NO. 90- 017; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: A. Anderson Seafoods - Water Line Extension. Schaefermeyer stated that a letter had been sent to Mrs. Anderson regarding her request for reim- bursement costs in constructing a water line extension to Anderson's Seafoods on Lowell Point Road. He noted that the city code provides that reimbursement is not allowed for water main extensions. He stated that the city could not afford to pay for this cost. Schaefer- meyer referred to a memo prepared by Assistant City Manger Yanez on the history of Anderson's Seafoods. In the memo, it was stated that the city had given a raw fish tax credit to Anderson's in 1988 which was to help with capital improvements. MEEHAN STATED THAT HE WOULD ABSTAIN ON THE ISSUE SINCE HE WAS EMPLOYED BY A COMPETITOR OF ANDER- SON'S SEAFOODS. Hilton stated he had forgotten about the fish tax credit. He noted that the city has already assisted by foregoing the fish tax revenue which would have been included in city funds. He noted that no other busi- nesses in town had received help from the city with their water extensions. 63 RESO/CUSTOMS PORT OF ENTRY: (Supporting ~wide CPE) WATER DEPT: (No action on Anderson request for water line extension) 64 PAGE 64 REGULAR MEETING - FEBRUARY 26. 1990 VOLUME 25 Dunham noted that she had also overlooked the fish tax credit. She expressed her sympathy that help could not be given to established businesses. She felt that the established businesses in town resented the fact that new businesses were being helped through lease incentives and tax deductions although the city was receiving benefits through local hire and a higher tax base. Sieminski stated that maybe an incentive could be given to Anderson's by possibly reducing their water rates over a period of time. Margaret Anderson stated that she had received the letter from the city informing her that there was little the city could do to help. She noted that incentives had been given to Chugach Alaska Corporation and Inlet Fisheries in the past so she felt that Ander- son's should receive incentives also. She stated that the raw fish tax was a legislative appropriation. Schaefermeyer replied that 50% of the raw fish tax was a legislative appropriation but an extra 25% was allowed to cities who elected to participate in the plan. He stated that the 25% given to Anderson's was the city's share. Noll stated that there were two types of projects; services, which provide service to a community, and production, which provides and utilizes tourism, fish, timber, coal and other resources. He suggested changing the code to support those projects which were "production based". Simutis stated that the term "lease incentive" had not been used until the Seward Marine Industrial Center was developed. She stated that the reason for providing these "incentives" was to increase productivity and development in a certain area. Schaefermeyer stated that his abilities to help Mrs. Anderson were limited by the code and he could not give her much hope at this point. The Council agreed that nothing could be done but urged the administration to have a conversation with Mrs. Anderson. Schaefermeyer agreed that he would meet with Mrs. Anderson with the understanding that nothing could be offered. I I I PAGE 65 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 XIII. NEW BUSINESS: Member. A. Appointment of Community Hospital Board COUNCILMEMBER HILTON ABSTAINED ON THE ISSUE DUE TO A CONFLICT OF INTEREST AS A HOSPITAL EMPLOYEE. Mayor Noll recommended that John Burckhardt be appointed to the Community Hospital Board for a term to expire 10/91. SIMUTIS MOVED TO CONFIRM THE MAYOR'S APPOINT- MENT OF JOHN BURCKHARDT TO THE COMMUNITY HOSPITAL BOARD; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS- LY. XIV. CITY MANAGER REPORTS: Schaefermeyer introduced will Josey, new Parks and Recreation Director. Josey was welcomed by Mayor Noll. Schaefermeyer recommended that a work session be held on March 5, 1990, at 7:00 p.m. with representa- tives of the Department of Transportation and Public Facilities to discuss the status of projects affecting Seward. THE CLERK WAS INSTRUCTED TO SCHEDULE A WORK SESSION FOR MARCH 5, 1990, AT 7:00 P.M. Schaefermeyer reported that the Corps. of Engineers had contacted Engineering & Utilities Manager Diener and advised him that the federal funds for the Small Boat Harbor reconnaissance study have been re- leased. The Corps plans to begin work soon and they expect to finish in nine months. They will then decide if a complete feasibility study would be needed. At that point, the city would need to subsidize the cost of the feasibility study. In response to concerns about the dock at the small boat harbor, Schaefermeyer stated that he had met with Harbormaster Singleton and Port Marketing Director Gates to review the situation. The existing dock would need to be "beefed up" for this season since it is not likely a new passenger loading dock could be built this year. A short term solution would be to monitor the number of persons on the float at one time while explor- ing a permanent solution to the problem. 65 COMMUNITY HOSPITAL BOARD: (Burckhardt appointed) 66 PAGE 66 REGULAR MEETING - FEBRUARY 26. 1990 VOLUME 25 Schaefermeyer reported that his recent trip to Washington D. C. with Mayor Noll had been successful. He stated that they worked with Edgar Blatchford, Chairman of Chugach Alaska Corporation and Keith Gor- daoff, Vice President of Chugach Forest Products. He stated that Bill Walker of Hughes, Thorsness, Gantz, Powell, and Brundin, who had worked on oil spill related issues in Washington D. C. and with Chris Gates on the RCAC, had brought ideas on the Valdez perspective about many topics. They met with Senator Steven's key staff about oil spill legislation and had a productive meeting with Senator Stevens on legislation regarding the Cordova science center. He stated that they also had met with Senator Murkowski' s staff and Congressman Young. He noted that Chugach Alaska Corporation, as well as the city of Seward, were very concerned about the Cordova science center and the fact that it would be used by environmentalists to "lock up" production in Prince William Sound. He noted that Senator Stevens was the key contact person in Washington D. C. on oil spill issues. Stevens assured the group that it was not his intent to use federal funds to create another Institute of Marine Science in Alaska, but the Cordova center was created to study the oil spill effects over the next nine years. Stevens also stated that the funds were not to be used for buildings, docks or construction of any type. Schaefermeyer pointed out that the reason for the trip was not to spoil the efforts by Cordova but to protect the investments of Seward. xv. COUNCIL DISCUSSION: SIEMINSKI asked how the drug policy was coming along. Schaefermeyer replied that it was being worked on and he plans to bring it to the Council with amend- ments to the personnel code. It would not require mandatory drug testing except for police officers and employees who had completed a treatment plan. Sieminski suggested that all new employees should be tested before being hired. HILTON thanked the Finance Department for a "well put together" status report. DUNHAM asked about the water well in Forest Acres. Schaefermeyer replied that a control housing had blown and been repaired. He noted that the city was in the process of locating a site for a new well. Dunham stated that she was opposed to drug testing of any kind for employees. , I , I . ,.- ! I t PAGE 67 REGULAR MEETING - FEBRUARY 26. 1990 VOLUME 25 MEEHAN asked about the status of the downtown improvements. Schaefermeyer replied that a design engineer had been selected and fees were being negotiated at this time. He expects funds to be available in the next two to three weeks, then a contract will be awarded for the design. NOLL noted that the Department of Transporta- tion and Public Facilities would be holding a public hearing on tandem trucks on March 13 at the Kenai peninsula Borough building, March 14 in the Seward Council Chambers and March 15 at the Girdwood community hall to accept public testimony. NOLL stated that he and Schaefermeyer would be meeting with Commissioner of Corrections Susan Humphrey Barnett to discuss the overall status of the prison. NOLL reported that Mayor Gilman had addressed the Rotary Club last week about his concerns with the impact that Mt. Redoubt would have on the Borough. The possible impact on the Drift River oil terminal could cause a decline of oil reserves in the Cook Inlet over the next decade which would reduce the tax base of the Borough and therefore, the cities in the Borough. NOLL complimented Schaefermeyer on his abili- ties to deal effectively with the many people they met in Washington D. C. He stated that conference meetings were coming up between the House and the Senate. Chugach Alaska Corporation and the City of Seward pointed out that a marine simulator exists in Seward which can effectively put the captain behind the wheel of a tanker in Prince William Sound and teach that person to actually navigate those waters. He noted that this had been mentioned in the House Bill but not the Senate Bill. He stated that a certain group of people in Cordova were not in favor of timber and tourism production and would do whatever they could to try and buy the land from the Alaskan natives to freeze it up. He stated that Blatch- ford and Schaefermeyer were quite persuasive with the people in Washington D. C. and suggested that more travel funds should be budgeted for the city manager to make one or two trips per year to the Capitol. XVI. CITIZENS' DISCUSSION: EDGAR BLATCHFORD, 316 5th Avenue, spoke about the recent trip to D. C. He agreed that the city needs to be represented more often, stating that the Senate offices are untapped resources which should be utilized. With the decline in oil revenues and reserves no longer i ; ,'"', PAGE 68 REGULAR MEETING - FEBRUARY 26. 1990 VOLUME 25 flowing into the state, the city should look to the Congress for support. BLATCHFORD stated that Chugach Alaska Corpora- tion has a large investment in the timber industry which could not have been possible without the help of the City of Seward. He stated that the potential for development of natural resources was being threatened by the group spearheading the Cordova science center project in that they did not want any development in the Prince william Sound area. He noted that the land settlement which the Chugach Alaska Corporation had made was for economic value and job opportunities for Alaskans. Chugach owes its shareholders the opportunity for employment in the timber and tourism areas. He stated that due to the many limited entry fishing permits, a person without the permit could not survive on fishing alone. He thanked Schaefermeyer and Noll for the opportunity to travel to Washington with them on behalf of Chugach Alaska and Seward. WALT SALINSKI, 611 Monroe, asked if the City was still negotiating on the grain terminal. Schaefer- meyer replied that discussions were still ongoing with Price-Chen. There was also another interested party if the deal with Price-Chen does not materialize. He stated that Gates had been busy acquiring a complete set of plans from Everson Co. in St. Paul Minnesota. The state has not been involved and would not become involved until the purchase was closer to being finalized. HERMAN LEIRER, Dairy Hill, recommended that since DOT/PF was coming down for a public hearing, they should be advised to lower the speed limit on Nash Road to 35 mph. He stated that there is a school and residen- ces in the area which have-steep driveways sloping down from the road. This causes hazardous conditions for those who must get a running start to get out of their driveways. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: SCHAEFERMEYER stated that opportunity to travel with Noll and complimented Noll on his communication many people. NOLL stated that they had met with Sewardites Dolly Dieter and Jan Trettner who had been involved with the hospital and IMS. He thanked Chris Gates for a job '--I well done on the Regional Citizen's Advisory Committee, stating that he has won unanimous respect by many. Noll he enjoyed the Blatchford and techniques with I I I 69 PAGE 69 REGULAR MEETING - FEBRUARY 26, 1990 VOLUME 25 also noted that City Clerk Linda Murphy would be return- ing to assume her duties on May 1, 1990. XVIII . ADJOURNMENT: The meeting was adjourned at 10:00 p.m. ~ Mayor f)~c ':'::,::~:.:"" ,,;>;.,.,.;:~\. \~ ~.. '. ~'~9'- P rl\,c~a Jones'." .'~' *tri'hg . City Clerk \:' ~ .' \j tCity Seal) ~ '2, C :, :,~ . ::-;' % ' ~ ~ ., ~ f~ ", ~.,..5 '. ,. ~,:~ . {<,,,, ) ,. \' - - - - -'""-t..7"- - - -."" -- -':~>".~;;" - - - - - - - - - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ PAGE 69'; SPECIAL MEETING - MARCH 5, 1990 VOLUME 25 I. CALL TO ORDER: The March 5, 1990, special meeting of the Seward City Council was called to order at 6:09 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 Dunham, Hilton, Meehan, Siemin- ski and Simutis (Burgess was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Port Market- ing Director Gates and Acting City Clerk Jones 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. SPECIAL ITEM: A. Request for Executive Session to discuss possible oil spill litigation. 70 PAGE 70 SPECIAL MEETING - MARCH 5, 1990 VOLUME 25 HILTON MOVED TO HOLD AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE SPECIAL MEETING TO DISCUSS POSSIBLE OIL SPILL LITIGATION; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. VI. COUNCIL DISCUSSION: None. VII. CITIZENS' DISCUSSION: None. VIII. COUNCIL & ADMIN. RESPONSE TO CITI ZENS I COM- MENTS: None. IX. ADJOURNMENT: The meeting was adjourned at 6:11 p.m. The Council held an executive session immediately thereafter. v~~ ~.'::J ~ Patricia J. Jones Acting City Clerk ~;J~cst~~ ,-" ''\~"''''1".'~C ~ (j .,~ ~'. ;:-..~ ~~ ~ · f SEAL : ~ : ~. -- . ~. .......~ ~'\,.... -'>. J'l""~~ ,t,~~"~-+-'" '~~F ,r.,\..t- ~, Mayor I I I I I 71 PAGE 71 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 I. CALL TO ORDER: The March 12, 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: Temporary Acting City Clerk Watts 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 Tans, Assistant City Manager Yanez , Administrative Assistant Martin, Engineering and Utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Harbormaster Singleton, Librarian Nicolas, Police Chief Bencardino and Acting City Clerk Watts IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE FEBRUARY 26, 1990 AND MARCH 5, 1990 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 SIMUTIS AND CARRIED BY UNANIMOUS CONSENT OF THE COUNCIL. VI. BOROUGH ASSEMBLY REPORT: Assemblymember Jonathan Sewall reported on the March 6, 1990, Borough Assembly meeting held in Soldotna. Items of interest included introduction of Ordinance No. 90-020, adopting Peninsula Coastal Management Program. A public hearing will be held at the April 3rd Assembly meeting. A hearing was held on Ordinance 90-006, which amends the Borough code regarding the measurement distan- ces on applications for liquor licenses. A hearing will 72 RESO/CON- RESO/RISK MGMT: (Apprvg bylaws of MiL/ JIA) C.ATTY: PAGE 72 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 be held at the next meeting on Ordinance 90-016, which Sewall introduced to prohibit the sale of alcoholic beverages between 2:00 a.m. and 9:00 a.m. outside of borough cities. The proposed State Budget Cap will also be discussed at the next meeting. Sewall plans to introduce a resolution requesting that bonded indebtedness be exempt if a Cap does pass. He mentioned the tandem trailer meetings to be held in Seward, Girdwood and Soldotna. Sewall plans to introduce a resolution by April 1st, banning the use of tandem trucks in the winter months. Noll stated he had heard one of the items to be discussed was allowing tandem trucks to use the highway from midnight to 7:00 a.m. Sewall stated he had heard of the possibility during the winter months of banning the use of tandem trucks and utilizing a greater number of smaller trucks to haul the same amount of lumber, thus increasing the price of freight. Sewall stated he supports the tandems being off the highway in the winter time. 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 PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-018, approving award of a contract to AeroMap U.S., Inc. for professional services without full utilization of city bid procedures was approved; B. Proposed Resolution No. 90-020, accepting amendments to the bylaws of the Alaska Municipal League Joint Insurance Associa- tion, Inc. (AML/JIA) was approved; C. January 31, 1990, invoice from Perkins Coie for legal services through December 31, 1989, in the amount of $19,718.32 was approved for payment; I I I March 2, 1990, invoice from Wohlforth, C.ATTY: Argetsinger, Johnson & Brecht for legal services through March 1, 1990, in the amount of $8,892.73 was approved for payment; March 8, 1990, memorandum from Acting City Clerk Jones recommending rescheduling of the March 26, 1990, regular meeting to March 27, 1990 was approved; PAGE 73 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 D. E. F. Travel authorization for Mayor Noll to travel to Juneau to attend "Ethics 2000" Symposium and Alaska Conference of Mayors in April, 1990, was approved; G. March 6, 1990, memorandum from Assistant City Manager Yanez regarding protective measures for city entrance signs was noted for information; H. ABCB notification of application for renewal of liquor licenses as filed by AMERICAN LEGION POST #5 AND YUKON LIQUOR STORE was approved without objection; Notice of application for permit for games of chance and skill as filed by SEWARD BAND AND CHOIR BOOSTERS, REPUBLICAN PARTY OF ALASKA, DISTRICT 6, SACRED HEART PARRISH, and AMERICAN LEGION AUXILIARY, SEWARD UNIT 5, was noted for information; 1. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law, regarding APPEAL HEARING by the City Council acting as the board of adjustment on the appeal of the denial of the conditional use permit as filed by Frank Irick of Seward Associates to construct a 24 unit apartment complex on Lot lA, Jesse Lee Heights Addition No. 4 (Plat #89-18 recorded 06/26/89), was noted. MAYOR NOLL DECLARED A CONFLICT OF INTEREST SINCE HIS RESIDENCE IS WITHIN 300' OF SAID PROPERTY AND STATED THAT HE WOULD ABSTAIN. The gavel was passed to Vice Mayor Hilton to Chair the appeal hearing. 73 C.COUNCIL: Resched. meeting C.COUNCIL: Approval of travel request by Mayor ABCB: (American Legion/Yukon Liquor Store) GAMES OF CHANCE & SKILL: BOARD OF ADJUSTMENT: Orick Appeal) 74 AUDIT: FY 1989 Audit presented by Price Water- House PAGE 74 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 HILTON RULED THAT COUNCILMEMBER SIEMINSKI WOULD ABSTAIN DUE TO A CONFLICT OF INTEREST BECAUSE HE OWNED PROPERTY WITHIN 300 FEET OF THE SUBJECT PROPERTY. The public hearing was opened. MICHELLE MINOR, attorney for Frank Irick and Seward Associates, stated that the arguments remain the same; that no new evidence is allowed at this time and she asked that the Planning and Zoning Commission issue the conditional use permit. She noted that the City Council should not have discussed the matter in executive session. She noted that the land was used properly within the R3 zone pointing out that the condition of the use is the concern, not the number of existing housing units in Seward. No one else spoke in order to be heard and the public hearing was closed. MEEHAN MOVED TO HOLD AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING REGULAR COUNCIL MEETING; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FIVE "YES" VOTES AND NOLL AND SIEMINSKI ABSTAINING. X. PRESENTATIONS WITH PRIOR NOTICE: DAVE ZETNICK and KURT MARTINS, representing Price Waterhouse, gave their presentation of the FY 1989 audit to the Council. They focused on the "Status 61" report, ten items of the audit. Zetnick indicated that at the time of the audit, the accounting department was understaffed. Meehan asked how many employees would be adequate for the finance department. zetnick stated he could not answer that question without seeing them in a standard operating environment, but he noted that they are probably ade- quately staffed at this point with the new accounting position filled. Noll suggested having a work session on the audit. Meehan and Simutis agreed. THE CLERK WAS INSTRUCTED TO SCHEDULE A WORK SESSION TO DISCUSS THE AUDIT FOR MARCH 28, 1990, 6:30 P.M. Schaefermeyer stated that by code the budget has to be adopted by June 15, 1990. Dunham suggested that the Council plan to discuss the budget before the end of April because of the improvements that are needed. I I I PAGE 75 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 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, Noll noted by title only a proposed resolu- tion entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AWARD OF A CONTRACT TO CRW EN- GINEERING SERVICES TO DESIGN SIDE- WALK, STREET AND STREETLIGHT IM- PROVEMENTS FOR THE CITY OF SEWARD Hilton asked why the design was being con- tracted out instead of being done as an in house pro- ject. Diener stated that the city did not have the proper staff or capability. He also stated that it was not cost effective to hire the staff to complete the project in the long run. Dunham asked if the design would be reviewed by the Council before the work begins. Diener stated that the contract requires the contractors to meet with the downtown association and they will make a presenta- tion to the Council also. Schaefermeyer voiced his confidence in the firm selected for this project. HILTON MOVED TO APPROVE RESOLUTION 90-019; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. 2. Copies having been made available to. the public, Noll noted by title only a proposed resolu- tion entitled: APPROVING MODIFICATIONS TO THE SMALL BOAT HARBOR VEHICLE PARKING REGULA- TIONS TO CREATE A FOUR HOUR PARKING LOT Schaefermeyer stated that the Trade Board, Planning and Zoning Commission and the local businesses favored passage of this resolution. He also stated that 75 RESO/CON- /STREET DEPT: (Contract for sidewalk de- sign) RESO/SBH/PARKING: (Creating a 4-hour parking lot in SBH' 76 PAGE 76 REGULAR MEETING - MARCH 12. 1990 VOLUME 25 the turnover that would be generated by this parking requirement is important to the businesses surrounding the parking lot. Hilton questioned why all the spots had to be four hour. Diener stated that it was easiest for the public. There should be less confusion with the whole lot planned this way instead of multi-hour time limits. Dunham questioned why there are thirty-day parking spots. Schaefermeyer stated that commercial fishermen in the area need spaces like these. Simutis stated that the parking problem has greatly improved with striped parking lots. RECESS: The meeting was recessed at 8:46 p.m. and reconvened at 8:53 p.m. Dunham stated she felt Sewardites should be given the privilege of parking over tourists. Sieminski stated he is in favor of the whole lot being a four hour parking lot. Burgess suggested the idea of creating a meter maid position. HILTON MOVED TO APPROVE RESOLUTION NO. 90-021; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUS- LY. XII. UNFINISHED BUSINESS: None. XIII. NEW BUSINESS: None. XIV. CITY MANAGER REPORTS: Schaefermeyer encouraged the public to attend the tandem truck and bark beetle meetings and gave a short report on the oil spill legislative update regard- ing Senator Stevens, then gave the floor to Chris Gates for his reports to the Council. Gates reported on the Regional Citizen's Advisory Committee meeting he attended in Cordova. He stated he was impressed with the Prince William Sound Science Center and hopes that Seward can become as enthusiastic as Cordova in becoming involved with the Center. He also stated he and Kerry Martin will be attending the Cruise Ship 90 seminar in Miami. He hopes I I I 77 PAGE 77 REGULAR MEETING - MARCH 12, 1990 VOLUME 25 that by 1991 Seward will be having up to 72,000 cruise ship tourists stopping in Seward. xv. COUNCIL DISCUSSION: SIMUTIS stated that she is pleased that the city is getting involved with this seminar but is disap- pointed with the lack of involvement from the Chamber of Commerce. Simutis commented on the recruitment of new hospital staff and stated that public involvement will help the recruitment process that much more. She com- mended will Josey, Parks and Recreation Director, on a job well done in organizing the Avalanche Basketball games, noting that business was brought to Seward be- cause of it. SIMUTIS attended the DARE (Drug Awareness Resistance Education) graduation ceremony of the 5th graders at Seward Elementary School and gave thanks to the Council for funding the program. She expressed her hopes that the program would receive continued support as well as a follow up program for the junior and senior high schools. BURGESS thanked the Council for the flowers he received while he was in the hospital. DUNHAM commented on the Cordova Science Center and suggested that Seward should have an endowment fund. She also mentioned itinerant people coming to Seward to sell things and not pay sales tax. She stated that this is becoming a big problem and it should be pursued diligently. NOLL thanked the local merchants for their participation in the Avalanche Classic weekend. Noll also thanked Foster Singleton for showing Seward to a photojournalist from Insight Magazine. Noll thanked Schaefermeyer and Hilton for helping Dr. Edmundson ac- quire the medicine needed for his biomedical research work. figures Council NOLL encouraged the administration to get cost and plans for an aquarium and bring these to the in the near future. XVI. CITIZENS' DISCUSSION: Walt Sczawinski, Woodland Hills suggested that Seward install a parking box harbor parking lot to pay for the aquarium. Estates, for the XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS { COM- MENTS: 78 PAGE 78 XVII I . REGULAR MEETING - MARCH 12. 1990 VOLUME 25 None. ADJOURNMENT: The meeting was adjourned at 9:40 p.m. 1. ~~~ City Clerk Mayor ----------------------------------------------- REGULAR MEETING - MARCH 27, 1990 CALL TO ORDER: VOLUME 25 The March 27, 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: Assistant City Manager Yanez led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Hilton, Meehan, Siemin- ski and Simutis (Dunham was excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Engineering and utilities Manager Diener, Port Marketing Director Gates, Finance Director Gifford, Parks and Recreation Director Josey, Administrative Assistant Martin, Harbormaster Singleton, Librar- ian Nicolas, Police Chief Bencardino and Acting City Clerk Jones I I I PAGE 79 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 SPECIAL ITEM: Mayor Noll read and presented a Proclama- tion to Pam Oldow proclaiming March 27, 1990, as "Pam Oldow Appreciation Day". IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE MARCH 12, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer requested the addition of New Business, Item B. to the agenda. MEEHAN 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 Assemblymember Sewall was not present due to the fact that he was at an assembly meeting. Noll stated that he had provided an analysis regarding possible closure of the Drift River Terminal facility due to the eruptions from Mr. Redoubt volcano. He suggested that this be taken up at the meeting of April 9. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None. VIII. APPROVAL OF CONSENT CALENDAR: Schaefermeyer requested the addition of Item K., transfer of liquor license as requested by Brad Snowden, dba New Seward Hotel. HILTON MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: 79 PROCLAMATION: (P.Oldow Ap.Day) A. February 28, 1990, invoice from Perkins C.ATYY: Coie for legal services through January 31, 1990, in the amount of $15,526.90 was approved for payment; B. March 16, 1990, invoice from Perkins Coie for legal services through February 28, 1990, in the amount of $21,903.30 was approved for payment; C.ATTY: 80 C.ATTY: C.ATTY: SALES TAX: 4th Quarter Report PRISON: Revised Construction Budget apprvd CON- ABCB: New Seward Hotel GAMES OF CHANCE & SKILL: PROCLAMATIONS: ABCB: New Seward Hotel PUBLIC HEARING: Shiplift Tariff PAGE 80 REGULAR MEETING - MARCH 27, 1990 VOLUME 25 c. March 21, 1990, invoice from Perkins Coie for legal services in connection with Seward Ship's Chandlery in the amount of $191.87 was approved for payment; D. March 15, 1990, invoice from Hughes, Thorsness, Gantz, Powell and Brundin for legal services in the amount of $4,244.25 was approved for payment; E. Sales Tax Report for the Fourth Quarter, 1989, submitted by Finance Director Gifford was noted for information; F. March 21, 1990, memorandum from Utilities and Engineering Manager Diener requesting approval of the revised Spring Creek Correctional Center construction budget was approved; G. Change order No.2 for an amount of $2,500 and No. 3 for time extension to the contract with Swenson Construction Co. for the security and storage building at SMIC was approved; H. ABCB notification of application for renewal of liquor license as filed by the NEW SEWARD HOTEL was filed without objection; I. Notice of application for permit for games of chance and skill as filed by SEWARD SENIORS, INC. was noted for information; J. Proclamation of the Mayor: PAM OLDOW APPRECIATION DAY - March 27, 1990, was noted for information; K. Request for transfer of liquor license as requested by the NEW SEWARD HOTEL was approved and the clerk was instructed to send a letter to the ABC Board. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law, regarding the proposed Shiplift System Tariff No. 1 of the City of Seward, naming rules, regulations, rates and charges; and concerning shiplift system operations by persons and vessels at the Seward Marine Industrial Center, Shiplift Dock, was noted by Noll. The public hearing was opened. I I I 81 PAGE 81 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 JIM PRUITT, Maple Street requested that the City Council postpone action on this item until April 9 due to conflicts with the lease between Seward Ship's Chandlery and the City of Seward. He stated that he would like a chance to review the tariff with his attorney and his insurance company before it is approved. SCHAEFERMEYER replied that Mr. Pruitt had received a copy of the tariff the prior Thursday so he had been given advance notice that this item was coming up. He stated that now that the shiplift system was in place, there was no tariff providing rules for the operation. The regulations must be put in place as well as the new shiplift permit or the alternative is not to operate the system until the city has a tariff. MEEHAN stated that the port development committee had reviewed the proposed tariff the week before. He expressed his support in approving the tariff now and making needed changes at a later date. PRUITT said that he did not see where the city exposed since Seward Ship's Chandlery is He felt that the new tariff negated many in his lease. would be insured. provisions In reply to a question from Simutis, Schaefer- meyer stated that the lease was structured for the shiplift to be operated under two separate agreements. The rail/transfer system would be considered under the permit which is part of the tariff, and use of the land would be considered under the lease. The existing shiplift permit with Seward Ship's Chandlery expired when the rail/transfer system became operational. The tariff must be implemented to cover the agreements before continued operation. In answer to a question from Burgess, Schaefer- meyer stated that originally, the shiplift system was scheduled to be completed in August, 1989, but the cradles were not yet completed at that time. ARVIDSON clarified a point for the Council stating that the lease pertains to the property upland of the shiplift. The tariff is a document which needs to be filed with the Federal Maritime Commission so that incoming vessels will know what the regulations governing the shiplift are. The permit is needed to use the shiplift. He noted that Mr. Pruitt was operating under a temporary permit to use the shiplift until such time as the system was completed. 82 RESO/SHIPLIFT: Shiplift Tariff adopted PAGE 82 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 SCHAEFERMEYER added that the new shiplift permi t is verbatim of the temporary permit wi th the exception of the termination date. PRUITT stated that he had a problem with the shiplift permit and would like his attorney to meet with the city attorney. No one else spoke 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: None. B. Ordinances for Public Hearing & Enactment: 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, ALASKA, ADOPTING SEWARD MARINE INDUSTRIAL CENTER SHIPLIFT SYSTEM TARIFF NO.1, NAMING RATES, CHARGES, RULES AND REGULA- TIONS FOR THE CITY OF SEWARD Meehan stated that he understood Mr. Pruitt's concerns and would welcome any comments by his attorney, but he felt it would be safer to adopt the tariff so the city would have it in place. Burgess concurred stating it could be modified at a later date if needed. HILTON MOVED TO APPROVE RESOLUTION NO. 90- 022; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED BY UNANIMOUS CONSENT OF THE COUNCIL. 2. Copies having been made available to the public, Noll noted by title only a proposed resolution entitled: I I I PAGE 83 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AWARD OF A CONTRACT TO CONSTRUC- TION AND RIGGING, INC. TO DESIGN AND BUILD A 250 TON TRAVELIFT DOCK AT THE SEWARD MARINE INDUSTRIAL CENTER Schaefermeyer stated that three proposals had been submitted and the city was pleased with the propo- sal from Construction and Rigging, Inc. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 023; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. 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 AND PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $1,800,000 IN AG- GREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE CITY FOR THE PURPOSE OF RAISING FUNDS TO PAY THE COSTS OF VARIOUS CAPITAL IMPROVE- MENTS IN THE CITY, FIXING CERTAIN DETAILS OF SAID BONDS, PROVIDING FOR THE FORM AND MANNER OF SALE OF SAID BONDS, AND PLEDGING THE FULL FAITH AND CREDIT OF THE CITY TO THE PAY- MENT THEREOF mality by the Schaefermeyer explained that this was a for- to follow up on the bond issue which was approved voters at the last regular election. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90- 024; THE MOTION WAS SECONDED BY HILTON 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 COMPUTER EQUIP- MENT AND TRAINING FOR INTEGRATION INTO THE MAIN COMPUTER SYSTEM BY THE 83 RESO/SMIC/CON- Construct Travelift Dock RESO/BONDS: Apprvd issuance of $1.8 Million in Bonds for various capital projects RESO/PURCHASING: Computer Equip- ment & Training 8<: RESO/PURCHASING: PAGE 84 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 HARBOR WITHOUT FULL UTILIZATION OF CITY BID PROCEDURES Schaefermeyer stated that this would allow the city to integrate the harbor with the VAX Computer System in the Finance Department and would improve the harbor accounting system. Hilton asked why the city was financing this upgrade instead of paying cash. Schaefermeyer replied that he was able to obtain favorable rates and would like to finance it over a period of time rather than use cash. HILTON MOVED TO APPROVE RESOLUTION NO. 90-025; THE MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANIMOUSLY. 5. 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 AMENDMENT TO THE $207,547 EQUIPMENT LEASE/PUR- CHASE AGREEMENT BY AND BETWEEN THE CITY AND SECURITY PACIFIC BANK, ALASKA, N.A.; AND PROVIDING FOR RELATED MATTERS SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90- 026; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer requested a correction to the resolution. He stated that the fourth line of Section ~ should read $222,000.00 instead of $220,000.00. MEEHAN MOVED TO AMEND RESOLUTION NO. 90-026 BY DELETING "$220,000.00" FROM SECTION 1. OF THE RESOLUTION AND ADDING "$222,000.00" IN ITS PLACE; THE MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED ON THE MOTION AS AMENDED AND IT CARRIED BY UNANIMOUS CONSENT OF THE COUNCIL. MAYOR NOLL DECLARED THAT HE AND SIEMINSKI HAD A CONFLICT OF INTEREST ON THE NEXT RESOLUTION BEFORE COUNCIL AND PASSED THE GAVEL TO VICE-MAYOR HILTON. I I I PAGE 85 REGULAR MEETING - MARCH 27, 1990 VOLUME 25 7. Copies having been made available tq the public, Hilton noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SITTING AS THE BOARD OF ADJUSTMENT, ADOPTING A DECISION ON APPEAL FROM DECISION OF THE SEWARD ADVISORY PLANNING AND ZONING COMMISSION MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 027; THE MOTION WAS SECONDED BY SIMUTIS. THE MOTION CARRIED WITH FOUR "YES" VOTES AND NOLL AND SIEMINSKI ABSTAINING. HILTON PASSED THE GAVEL TO MAYOR NOLL. XII. UNFINISHED BUSINESS: None. XIII. NEW BUSINESS: 85 RESO/JLH SUB/CUP/ APPEALS: Decision on Irick Appeal A. Appointment of a Seward Representative to KPB/EDD: D. Suther- the Kenai peninsula BorouQh, Economic Development Dis- land appointed trict. MAYOR NOLL SUBMITTED HIS NOMINATION OF DON SUTHERLAND TO SERVE AS SEWARD'S REPRESENTATIVE ON THE KPB-EDD BOARD TO THE COUNCIL. SIMUTIS MOVED TO APPROVE THE MAYOR'S RECOMMEN- DATION TO APPOINT DON SUTHERLAND TO THE KPB-EDD BOARD; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UN- ANIMOUSLY. B. Simutis request for an amendment to the ground lease in the Small Boat Harbor. The Chairman ruled that Councilmember Simutis had a conflict of interest and would abstain from speak- ing to this issue. Schaefermeyer stated that the administration was seeking the authority to proceed with negotiations on this amendment. He noted that it would come before the council in a public hearing and then be considered for approval by resolution. HILTON MOVED TO APPROVE THE REQUEST BY THE ADMINISTRATION TO PROCEED WITH NEGOTIATIONS ON A LEASE AMENDMENT WITH RAY AND LESLIE SIMUTIS ON THEIR LEASE IN SBH BOARDWALK LEASE SITE NO.7: (Ap- proval to negoti- ate w/Simutis for expansion of lease) rof ' . ~..; ; PAGE 86 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 THE SMALL BOAT HARBOR; THE MOTION WAS SECONDED BY MEE- HAN AND CARRIED UNANIMOUSLY. XIV. CITY MANAGER REPORTS: Schaefermeyer thanked Harbormaster Singleton and staff, Engineering & utilities Manager Diener, and Public Works Supervisor Ainsworth for their efforts in completing work on the shiplift system. He stated that the certification by Lloyd's of London went smoothly and he commended the efforts of all those involved. Schaefermeyer reported on the status of legis- lative priorities that relate to Seward. Railbelt Energy Fund - the proposed transmission line project was one of the top projects on the priority list for funding. He stated that Representative Kubina had introduced a bill to include the ten million needed for the T-line to the House/Labor/Finance Committee. Diener testified on behalf of the City. A quorum was not present so another meeting will be held to hear testimony on that bill. He noted that the hospital legislation was moving as a statewide bond proposition package and was currently before the House/Finance Committee. Gates reported on his trip to Miami to attend the Sea-Trade cruise ship fair. He noted that tourism was increasing in Alaska as well as Seward, and that the cruise ship industry should be followed more closely. He stated that he and Kerry Martin had teamed up with Vancouver to attract cruise ships to the northern route. He stated that some objectives to consider were how to seek additional revenues from passengers while they were in port, learn the sea trade more thoroughly and team up with Vancouver in the future to promote the northern routes. He noted that the Scandinavian countries were making a great effort to pull the cruise ship trade from Alaska. XV, COUNCIL DISCUSSION: BURGESS stated that he was glad to see the shiplift system operational. SIEMINSKI stated that he would like to see the council follow up with the cruise ships and the proposed cruise ship dock. SCHAEFERMEYER replied that as a matter of economics Seward needed to see an increase in visits before committing funds to the project. He noted that the city would work with the Chamber of Commerce and other organizations to follow the industry and develop I I I 87 PAGE 87 REGULAR MEETING - MARCH 27. 1990 VOLUME 25 it over time. He noted that the dock improvements were included in the three year capital plan. SIMUTIS stated that it was exciting for the City of Seward to be represented at the cruise ship fair but expressed her disappointment at the lack of involve- ment by the Chamber of Commerce. MEEHAN requested that a resolution be drafted to urge the legislature to retain the State Fish and Game field biologist position for the Seward area. The position became vacant with the retirement of Ted McHen- ry. He also requested that the administration look into the fares being charged by local taxis because he had reports from concerned citizens that different fares were being charged for the same destination. HILTON voiced his appreciation to the city personnel and Seward Ship's Chandlery for a job well done on the shiplift system. NOLL congratulated Pam and Don Oldow and thanked them for their contribution to the community. NOLL stated that he had met with the Coast Guard, Admiral Yost and Admiral Cianginlini along with other Mayors on oil spill issues. He noted that the role of the Coast Guard as it relates to the oil spill will diminish significantly. The main concerns expressed by the Mayors were: 1) oil still remains this spring; 2) Seward as a possible logistical base; 3) requirement of licenses for oil spill workers by the Coast Guard; 4) the uncertain future of the fishing season this year; and 5) a scientific assessment is not available to the towns and fishermen most affected by the spill. He noted that Governor Cowper had announced that the state scientists were concerned with the salmon fry. NOLL stated he had recently returned from a conference on the environment which was held in Anchor- age. He noted that there was a need for economic devel- opment and there were many concerns about the environ- ment. The conference was attended by representatives throughout the world. NOLL thanked Schaefermeyer for meeting with him and discussing the possibility of an aquarium for the city. XVI. CITIZENS' DISCUSSION: JAMES PRUITT, Maple Street, reported on the recent activities on the shiplift system. He stated that the transfer and rail test had gone very well and the 88 PAGE 88 REGULAR MEETING - MARCH 27, 1990 VOLUME 25 cooperation between the city and Seward Ship's Chandlery was in harmony. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: XVII. SCHAEFERMEYER reminded the council of a work session on the audit at 6:30 p.m. on Wednesday, March 28, 1990, in the Council Chambers. MEEHAN complimented Mr. Pruitt and the crew of Seward Ship's Chandlery on an excellent job done on the construction of the cradles. XVI II . ADJOURNMENT: The meeting was adjourned at 8:55 p.m. p~c'.~ ~ Patr1cia Jones Acting City Clerk ~~ Mayor all .1 Of" .~,~ ~ fl '\" :,i~01t"'-,~~ r). ,"'~' 4)-";,.0 ""-' :' ~'V '(:{> " . , --~..~,. . . ' , Cr!..-' ~ ;., l.:I :-~L ,L" -<!I- ------------------------------------------------------ PAGE 88 REGULAR MEETING - APRIL 9, 1990 VOLUME 25 1. CALL TO ORDER: The April 9, 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: Councilmember Meehan led the pledge of al- legiance to the flag. III. ROLL CALL: I I I PAGE 89 REGULAR MEETING - APRIL 9, 1990 VOLUME 25 Present were: Mayor Noll and Councilrnembers Burgess, Dunham, Hilton, Meehan, Sieminski and Sirnutis Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Engineering and utilities Manager Diener, Finance Director Gifford, Assistant Finance Director Bagierek, Harborrnaster Single- ton, Parks and Recreation Director Josey, Administrative Assistant Martin, Hospital Administrator Campbell, Librari- an Nicolas, Police Chief Bencar- dino and Acting City Clerk Jones IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE MARCH 27, 1990 MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer requested the addition Proposed Resolution No. 90-035 as Agenda Item XI C C) C 4 \, and the addition of proposed Resolution No. 030 as Item "I" on the Consent Calendar. of No. 90- Sieminski requested that Consent Calendar Item A., proposed Resolution No. 90-028, be moved to the regular meeting agenda as Item No. XICC)C5\. SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Borough Assemblymember Sewall was not present and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: JOE NORD, P. O. Box 5090, Kenai, spoke repre- senting Allied Processing, a small fish plant in Kenai. He requested that the Council consider waiving the tariff fee on the gray cod which is taken over the dock by the company. He stated that the price of the cod was not enough to warrant paying the high tariff on it. 89 CIT.DISCUSSION: (Joe Nord) 90 RESO/CHILDCARE: authorizing city participation in state program PARKS & REC: Statistical Report ABCB: Van Gilder Hotel GAMES OF CHANCE & SKILL: PROCLAHATION: RESO/CON- Heter Reading Contract PAGE 90 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 Schaefermeyer stated that he would review the request and make a recommendation to the Council at the next meeting. VI II . APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. The following actions were taken: A. Moved to regular meeting agenda. B. Proposed Resolution No. 90-029, authoriz- ing the city manager to enter into an agreement with the State of Alaska to participate in the child care benefits portion of the welfare reform act was approved; C. April 3, 1990, memorandum from Assistant City Manager Yanez regarding a proposed short term lease with Exxon for the 1990 season, was noted for information; D. Statistical report on the 1989 Campground season as filed by Parks and Recreation Director Josey was noted for information; E. April 4, 1990, memorandum from Administra- tive Assistant Martin concerning a work session with DOT /PF personnel was approved and a work session was scheduled for Monday, May 21, at 12:00 noon; F. ABCB notification of application for renewal of liquor license as filed by the VAN GILDER HOTEL was approved without objection; G. Notice of application for permit for games of chance and skill as filed by SEWARD JR. SR. HIGH SCHOOL, INTERNATIONAL JAYCEES, AND JAYCEES OF ALASKA, was noted for information; H. Proclamation of the Mayor designating April 22, 1990, as Earth Day 1990, was noted for information; and I. Proposed Resolution No. 90-030, awarding a contract for electric and water meter reading, was approved I I I PAGE 91 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law, regarding the proposed acquisition of Lots 1 and 2, Marathon Addition, at the corner of First Avenue and Lowell Canyon Road from the Seward General Hospital Association, Inc. for future development of a hospital complex, was noted by Noll and the public hearing was opened. KEITH CAMPBELL, Administrator or Seward General Hospital reminded the Council that the assets of the hospital had been transferred to the city in 1986 but the land noted had not been included. He stated that it was appropriate to transfer the land at this time so that the property could be replatted into one piece. He noted that it had been approved by the Hospital Association sitting as the Community Hospital Board at its meeting of March 19, 1990. No one else spoke in order to be heard and the public hearing was closed. x. PRESENTATIONS WITH PRIOR NOTICE: JIM HENDRICKSON, 1122 Park Place, gave a verbal report on the status of the Chamber of Commerce, high- lighting the upcoming goals and objectives. He intro- duced Executive Director Wayne Carpenter to the Council, NOLL thanked Mr. Hendrickson for his report and welcomed Carpenter. 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, Noll noted by title only a proposed resolu- tion entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE CITY OF SEWARD GENERAL TERMINAL TARIFF NO. 1 C\~ ''/- PUBLIC HEARING: Proposed property acquisition for hospital expansion crT. DISCUSSION: Jim Hendrickson RESO/TARIFF: General Terminal Tariff apprvd. 92 RESO/MARATHON ADDN/ SGH: Accepting transfer of prop. for future hosp. construction RESO/SHIPLIFT: Approving Amendment No. 1 to the Shiplift Tariff PAGE 92 VOLUME 25 REGULAR MEETING - APRIL 9. 1990 Schaefermeyer stated that the revisions to the tariff were to clarify that the City of Seward is res- ponsible for its own acts of negligence, etc. and to include the terminal use permit as a part of the tariff. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90- 031; 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 resolu- tion entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPT- ING TRANSFER OF OWNERSHIP OF LOTS 1 AND 2, MARATHON ADDITION, FROM SEW- ARD GENERAL HOSPITAL ASSOCIATION, INC. TO THE CITY OF SEWARD Mayor Noll ruled that Hilton would abstain on this issue due to a conflict of interest. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 032; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. 3. 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- ING AMENDMENT NO. 1 TO THE SEWARD MARINE INDUSTRIAL CENTER SHIPLIFT SYSTEM TARIFF NO. 1 Schaefermeyer stated that the proposed amend- ments were needed to incorporate the rules and regula- tions for the city's dry berths at the Seward Marine Industrial Center. A request had been received to use these berths but the City has no provisions in place regulating their use. Arvidson stated that lease or rental of the berths would generate additional income for the city. The cost would be $100 per day for use of a city berth in addition to the regular fee of $200 per day dry storage for vessels. In answer to a question from Noll, Singleton reported that the employees of Seward Ship's Chandlery had asked to use the berth. The city would receive I I I PAGE 93 REGULAR MEETING - APRIL 9, 1990 VOLUME 25 payment in lieu of lease of the berth space. There was no objection from Mr. Pruitt. BURGESS MOVED TO APPROVE RESOLUTION NO. 90- 034; THE MOTION WAS SECONDED BY SIMUTIS 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, REQUEST- ING THAT THE STATE OF ALASKA, DEPAR- TMENT OF FISH AND GAME, RETAIN THE FIELD BIOLOGIST POSITION VITAL TO THE SEWARD AREA Meehan stated that he had sponsored this resolution due to the fact that the local full time position in the State Department of Fish and Game had not been filled since the resignation of Field Biolo- gist, Ted McHenry. He noted that with the growing fishing industry, it was vitally needed. A resource of revenues exists to fully fund this sport fishing posi- tion. Schaefermeyer stated that he was amazed that the State did not see a need for a field biologist position in the Seward area. He urged everyone to contact the legislature immediately to advise them that this position should be retained for Seward. Dunham urged the Chamber of Commerce and other organizations to become involved because the need is no less now than it was twenty years ago. Noll stated that the fishing businesses should especially contact their legislators to support the retention of the position. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-035; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUS- LY. 5. 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 EQUIPMENT FOR SNOW REMOVAL AND CLEANING AT THE SEWARD MARINE INDUSTRIAL CENTER 93 RESO/STATE OF AK: Requesting reten- tion of F&G Bioli- gist position in Seward RESO/PURCHASING: Snow Removal Equipment for SMIC ('\! . . " .. PAGE 94 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 WITHOUT FULL UTILIZATION OF CITY BID PROCEDURES Sieminski stated that the City should go out to bid on equipment instead of buying outright. Schaefermeyer replied that the reason the city did not go to bid was that after investigating and surveying the businesses who supplied this equipment, only one company had a machine of the type and use which the city required. That company was Craig Taylor and the machine was a John Deere tractor. The City has been pleased with the reputation of the company. Sieminski stated that since the city did not seek bids, it could not be determined if the price for the equipment was fair. NOTE: Noll was called away to answer a phone call. He passed the gavel to Vice Mayor Hilton and the meeting was continued. Meehan stated that he understood Sieminski's thoughts. If a local dealer supplied the equipment it would be different. He noted that he would rather see the bid process utilized in most cases. Simutis stated that the equipment was a speci- fic piece of machinery and sometimes it is not necessary to go out for bids if all resources have been contacted. Dunham voiced no objection to the purchase, however, it would be better to utilize the bid process more often. NOTE: Noll returned and Vice Mayor Hilton passed the gavel to him to conduct the meeting. Hilton suggested that the administration compare the prices with companies in Seattle. Burgess stated that John Deere had a good repu- tation for the quality of its equipment and that was a good basis for deciding on this purchase. RECESS: The meeting was recessed at 8: 25 p.m. and reconvened at 8:30 p.m. THE QUESTION WAS CALLED AND RESOLUTION NO. 90- 028 WAS APPROVED WITH SIX "YES" VOTES AND SIEMINSKI VOTING "NO". XII. UNFINISHED BUSINESS: I I I PAGE 95 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 None. XIII. NEW BUSINESS: A. Schaefermeyer explained that there was a vacancy for a Correctional Officer I position in the city jail. After advertising, three applications were received. After interviews, it was determined that former Mayor Harry Gieseler was the best qualified person to fill this position. The Charter provides that an elected official is not eligible for city hire for one year after his term of office expires unless approved by a majority of the Council. Schaefermeyer requested that the Council waive the requirement in the Charter and hire Harry Gieseler. Dunham voiced her approval stating that Gieseler is well qualified and would do a good job. Meehan stated that during his four years in office, Gieseler had not been involved in any adverse police department action. Meehan spoke in favor of hiring Gieseler. DUNHAM MOVED TO ALLOW HARRY GIESELER TO ASSUME THE CORRECTIONAL OFFICER I POSITION WITH THE CITY OF SEWARD; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. XIV. CITY MANAGER REPORTS: Schaefermeyer stated that he had received a complaint on the right of way clearing by electric crews from the Ptarmigan Creek area to Lawing Substation. He noted that the crew had cleared those trees and shrubs which were in danger of interfering with the power lines and they would be returning in the near future to clear the brush. Most of the downed trees had been utilized by local citizens for firewood. Dunham stated that this complaint may have something to do with the past problems experienced during the construction of the 69KV line, but the right of way was required. In answer to a question from Dunham about the right of way situation when the new line is built, Schaefermeyer answered that the city was looking at building the line in a different area utilizing some federal and state property. The City is presently working with the state and the forest service to pursue a right of way easement through the Lawing area. No funds are being utilized now but staff time is being used to go through the process. 95 C.COUNCIL: Auth. for former Mayor Gieseler to be appointed to Cor. Officer position) 96 PAGE 96 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 Burgess noted that the city did not cut any more trees than was needed. He hoped that the right of way problem would be solved by using a different route. Meehan stated that the trees had to be removed and the crew had only cut what was necessary. Schaefermeyer advised the Council that Depart- ment of the Interior Secretary Lujan and Mayor Gilman would be in Homer on April 10 to discuss the oil spill and he and Mayor Noll would be attending. Schaefermeyer reminded the Council that a special meeting was scheduled for 4:00 p.m. on April 11 to approve the sale of general obligation bonds for street and sidewalk improvements. He noted that the closing would be on April 26, 1990. xv. COUNCIL DISCUSSION: SIEMINSKI noted that a new company was inter- ested in developing a fisheries in Seward and the negative comments by Seward Fisheries was not in the best interest of promoting Seward. He also mentioned that the situation where Dragnet Fisheries would be utilizing the dock to transfer fish out of the city was not the best use of the land. He stated that the City was lax in cleaning up the SMIC area and the junk around town. He also mentioned that he would like to see closer super- vision of city employees who appeared to be lax on some issues. DUNHAM asked about the report on the grid damage and requested a copy of the survey. She asked if the city would be landscaping again this year noting that it looked nice last year. Schaefermeyer replied that the beautification project would continue with funds received from Parks and Recreation. SIMUTIS noted that the recent work session with the trade board covered many topics. She commended Gates in covering so much in two hours and thanked Secretary Watts for her notes on the overview of the work session. She stated that she had an opportunity to man the Chamber of Commerce booth at the Sportsmen's Trade Show held in Anchorage. She commended the city on their display and the video of Seward. She suggested that in the future we can work together to promote Seward. She noted that she had participated in an oil spill survey sponsored by the mayors of the oiled communi ties and stated that communities had been affected economically and psycholog- ically. I I I 97 PAGE 97 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 MEEHAN stated that he owed an apology to the owner of the cab company and the drivers for his remarks about inconsistent cab fares. He had talked to the owner in detail about the problem and she stated that she would be glad to talk with anyone directly about complaints. He noted that the fares were consistent at this time. Meehan also stated that the trees and brush at 7th Avenue and Monroe need to be cut. HILTON asked when the clean up would begin. Diener stated that the crews were working on the streets over the next two weeks. Everyone is gearing up for the general cleanup the week of May 12. NOLL informed Simutis that the Impact Assess- ment Co. had been hired by Exxon to do the oil spill survey she had referred to. He noted that the Elk's had sponsored the "Teen of the Year" dance and congratulated Amy McCauley and Steve Huss for being selected. He also congratulated Sandra Wassilie who was chosen by the Elks as "Public Employee of the Year" out of six nominees. NOLL stated that the Seward Highway had been designated as the only scenic byway in Alaska. NOLL stated that he had attended the Export Banquet in Anchorage on April 6 and received an award on behalf of Icicle Seafoods for its success in promotion of businesses in the international market. He congratu- lated Icicle on its efforts. NOLL thanked Kathy Watts for her service to the city as secretary in the City Clerk's office, noting that she would be leaving Seward soon. NOLL reported that he had just returned from a trip to Juneau where he had attended an "Ethics 2000" conference and the Alaska Conference of Mayors. He noted that there was talk about the oil spill. The Senate had agreed on $9.5 million dollars from the Railbelt Energy Fund for the transmission line. He stated that he and Mayor Selby of Kodiak had spoken to Bob Evans from the governor's office on the hospital issue and he informed them that the governor was not favorable towards any health bills this session. He met with Kent Dawson who stated that the health package did not look encouraging. He suggested that the administration look for an alterna- tive, possibly a re-do of the clinic. NOLL asked the clerk to make copies distribute a letter from Mr. A. J. Paul concerning aquarium style marine mammal center. and the ('" ..j I~' PAGE 98 REGULAR MEETING - APRIL 9. 1990 VOLUME 25 XVI. CITIZENS' DISCUSSION: None. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: XVII. None. XVIII . ADJOURNMENT: The meeting was adjourned at 9:30 p.m. . I . . SEAL ~. --- .~ :;', ---~-:'-- ~~ ''''':.~~..'J:}.r.~..qft "J', ' Ill: --s,- ...~ :;.0... I' ,.~~....t ~ >--,:-':~Pf OF ",-to ./"? o~7:1" . -------------------------------------------- SPECIAL MEETING - APRIL 11, 1990 VOLUME 25 CALL TO ORDER: The April 11, 1990, special meeting of the Seward City Council was called to order at 4:00 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, Dunham, Hilton, Meehan, and Simutis (Sieminski was excused) Present also: Ci ty Manager Schaefermeyer, Assistant City Manager Yanez, Finance Director Gifford, Police Chief Bencardino and Acting City Clerk Jones IV. APPROVAL OF SPECIAL MEETING AGENDA: I I I PAGE 99 SPECIAL MEETING - APRIL 11, 1990 VOLUME 25 MEEHAN MOVED TO HOLD AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE SPECIAL MEETING TO DISCUSS PERSONNEL MATTERS WITH CITY MANAGER SCHAEFERMEYER; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. HILTON 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, AUTHORI- ZING THE SALE TO THE ALASKA MUNICIP- AL BOND BANK OF $1,800,000 OF GENER- AL OBLIGATION BONDS, SERIES 1990, AUTHORIZED BY RESOLUTION NO. 90- 024; AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE A LOAN AGREEMENT WITH THE ALASKA MUNICIPAL BOND BANK FOR THE PURCHASE AND SALE OF SUCH BONDS; AND PROVIDING FOR RELATED MATTERS. Schaefermeyer explained that the interest rates contained in the resolution averaged 7.395% over the life of the bonds. The debt service to the city is roughly $180,000 over the next twenty years. He stated that the project designer has the preliminary designs and plans complete and the project should go out for bids in the next month. It will take two years to complete. Hil ton asked why the payments did not start until 1992. Schaefermeyer replied that the application had been misread by the underwriters. They assumed the city had meant calendar year instead of fiscal year. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-033; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUS- LY. VI. COUNCIL DISCUSSION: NOLL asked the administration about a memo he had received regarding personal use of calling cards. Schaefermeyer replied that this was a reminder not to use the city calling card for personal use unless an emergency exists. 99 RESO/BONDS: Auth. agrmt w/Municipal Bond Bank for is- suance of $1.8 M in bonds for var. capital improve- ments within the cit:y ~.oo PAGE 100 SPECIAL MEETING - APRIL 11. 1990 VOLUME 25 NOLL noted that he and Schaefermeyer had flown to Homer with Kenai Peninsula Borough Mayor Gilman to visit with Secretary of the Interior Lujan to discuss the oil spill. In a letter to Secretary Lujan from the city, two basic points of interest were presented: 1) use of the marine simulator at AVTEC as a mandate for pilots navigating the waters of Prince William Sound, and 2) use of the IMS center for use as a marine mammal center. He stated that Congressman Young, who was also in attendance, was supportive of the use of IMS for re- search. MEEHAN asked what happened to the idea of a Seaman's Center? DUNHAM stated that seamen who don't drink need a place to go. She agreed that a marine mammal center was a more appropriate request as opposed to a different type of aquarium. NOLL stated that SAAMS is supportive of the marine mammal center. VII. CITIZENS' DISCUSSION: None. VIII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: IX. ADJOURNMENT: Council recess. The meeting was adjourned at 4:28 p.m. met in executive session following a The brief ~~~.~ Patricia J. Jones Act' City Clerk ~~ Mayor I I I 101 PAGE 101 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 I. CALL TO ORDER: The April 23, 1990, Seward City Council was called Mayor William C. Noll. 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 Noll and Councilmembers Burgess, Dunham, Hilton, Meehan, Sieminski and Simutis Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Electric Engineer Anderson, Port Market- ing Director Gates, Public Works Superintendent Ainsworth, city Clerk Murphy, Administrative Assistant Martin, Building Inspector Ferguson, Parks and Recreation Director Josey, Librarian Nicholas, Teen Center Director Adelmann, Lieutenant Earl and Acting City Clerk Jones SPECIAL ITEM: Mayor Noll presented and read the following proclamations: PROCLAMATIONS: A proclamation of the Mayor designating April 22-28, 1990, as National Library Week, was presented to Librarian Catherine Nicholas. A proclamation of the Mayor designating May 6- 12, 1990, as National Hospital Week, was presented to Vice-Chairman of the Community Hospital Board, John Burckhardt on behalf of Seward General Hospital.' A proclamation of the Mayor designating May 5, 1990, as a "Day of Hope" was presented to Amy DuBose of the Teen Council representing the Teen Center. A proclamation of the Mayor designating May 7, 1990, as National Nurses Day, was presented to Jan Hilton on behalf of all nurses. 102 CIT.DISCUSSIOl'J: Joe Nord C1T DiSCUSSION: \-Iayne Carpenter PAGE 102 REGULAR MEETING - APRIL 23. 1990 APPROVAL OF MINUTES: VOLUME 25 IV. BURGESS MOVED TO APPROVE THE APRIL 9 AND APRIL 11, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer requested the following addi- tions to the regular agenda: Presentations with Prior Notice: Development Committee report by Scott Lust. B. Port New Business: B. change Orders No. 1 and 2 to the Construction and Rigging contract for the con- struction of the 250 ton travelift dock New Business: C. Marine Mammal Center - IMS HILTON MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF REGULAR BUSINESS TO DISCUSS LABOR NEGOTIATIONS AND PERSONNEL MATTERS; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Assemblymember Sewall gave a verbal report of the recent borough assembly meetings highlighting the school budget, sol id waste disposal issues, proposed changes to the structure of the school district seats from regional to designated seats, the sales tax cap and a possible bike path for the area. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: JOE NORD, P. O. Box 5090, Kenai, spoke as a representative for Allied Processing. He requested a variance from the Council to waive the tariff fee on underutilized species of fish coming across the dock. He stated that local fishermen sell to his company. WAYNE CARPENTER, Chamber of Commerce, stated that the Alaska state Chamber of Commerce elected to hold their spring board meeting in Seward on June 1 and 2. A reception has been planned for that Friday evening with a tour of the bay and a meeting on Saturday. I I I PAGE 103 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 103 BOB VALDATTA, 528 5th Avenue, spoke about the CIT.DISCUSSION: problem with disposal of large items at the landfill such Bob Valdatta as stumps, concrete and old cars. He stated that the city should have the opportunity to design a shredder of its own. VIII. APPROVAL OF CONSENT CALENDAR Burgess suggested that the consent calendar be published in the newspaper along with the agenda so that the public would be aware of items listed for approval or information. City Clerk Murphy stated that the clerk's office normally publishes all resolutions and there would be no problem with publishing the consent calendar along with the agenda. It was noted that the consent calendar is available in the clerk's office and the lobby of city hall on the Friday before each council meeting. SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-036, authorizing the early opening of the public campgrounds in Waterfront Park prior to May 15, was approved; B. Proposed Resolution No. 90-037, appropriat- ing funds from the general fund fund balance to the Parks and Recreation Department for the purpose of operating a Children't Ice Cream Theatre program for the summer of 1990, was approved; C. April 17, 1990, memorandum from City Attorney Arvidson recommending payment of one-half of court awarded costs in the Seward Property Owners Association v. City litigation, was approved for payment; D. ABCB notification of application renewal of liquor license as filed by YUKON BAR approved and a letter of non-objection was issued; for was E. April 9, 1990, memorandum from Assistant City Manager Yanez providing information on planned SMIC security measures, was noted for information; F. Proclamations of the Mayor were noted as follows: April 22-28 - "National Library Week" May 6-12 - "National Hospital Week" RESO/P&R: Auth. early opening of campgrounds RESO/P&R: Approp. funds for Childrens Ice Cream Theater LITIGATION: Payment of 1/2 cour costs in SPO Litigation ABCB: Yukon Bar PROCLAMATIONS: -(''[ .. oJ .. PUBLIC HEARING: Inlet Fisheries Lease CIT. DISCUSSION: Nelbro Presen- tation - Trevor Beeston PAGE 104 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 May 5 - "Day of Hope" May 7 - "National Nurses Day, 1990" G. April 17, 1990, memorandum from Administra- ti ve Assistant Martin regarding sublease of Boardwalk site #3, Block 6, Oceanview Subdivision, from Trails North Inc. to Linda J. Worabel for the operation of a tee shirt gift shop, was approved. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law, regarding proposed amend- ments to the Inlet Fisheries, Inc. LEASE agreement regarding dock maintenance, responsibilities and indem- nification, and sublease/assignment of LEASE from Inlet Fisheries, Inc. to Inlet Producers, Inc. was noted and the public hearing was opened. VINCENT GODDARD, President of Inlet Fisheries, stated that the company had been experiencing minor problems in the care of the dock so they would like to amend the lease to cover some addi tional items not originally included. Under the present lease agreement, Inlet Fisheries provides full maintenance and repair of the dock which was given to the city for one dollar. He stated that during the past winter, damage had been done to the dock by a third party. He specified that the changes to the lease would require that damages done by a third party would be the responsibility of that party, not Inlet Fisheries. He noted that Inlet Fisheries would be responsible for repairing damage which they had done. Another change to the lease would invol ve assignment of the lease to Inlet Fish Producers, which is a separate entity within Inlet Fisheries. He reported that the building structure is to be completed this year and the freezing facility will be completed next year. No one else spoke in order to be heard and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NOTICE: A. TREVOR BEESTON, President of Nelbro Packing Co., Kenmore, Washington, gave a brief overview of the history of his company stating that it had been in operation in Alaska for thirty years. He noted that his company was a small to medium fish processing company which is a subsidiary of B.C. Packers, part of George Weston Ltd. a huge conglomerate. I I I 105 PAGE 105 REGULAR MEETING - APRIL 23, 1990 VOLUME 25 He stated that Nelbro was interested in establishing a plant in southcentral Alaska and was looking at Seward as a possible site because it was attractive as far as infrastructure, accessibility and the georgraphical location. Nelbro would like to perform a feasibility study but the company needs to know if a site would be available before they invest the time and effort. The main target for the fish processing would be pink salmon from the Prince william Sound area. He noted that this fishery is not currently being utilized in Seward. The long term goal would be to maximize production through the Seward plant which would ul timate- ly involve a canning line and a freezer plant. One to two acres of waterfront property would be needed for construction of a dock and processing building with addi tional property needed upland for expansion. A lease option for more than twenty years would be sufficient. Meehan noted that he would issue due to a conflict of interest. Meehan would abstain. abstain on this Noll ruled that Schaefermeyer stated that the administration was seeking direction from the Council before pursuing the issue and asked Gates to address the council. Gates stated that he had been speaking with Nelbro since December, 1989, and it was now time to seek permission from the City Council to enter into negotia- tions for a possible lease of property at the Seward Marine Industrial Center. He noted that a number of issues were involved including the prospect of dividing existing fish processing facilities, an understanding of the issue by Nelbro and the city, the number of sites available to Nelbro in the Prince William Sound area, and the site location requested by Nelbro which was set aside in the past for general cargo. Another issue would be the fact that Inlet Fisheries had requested the use of land by the dock in the past and that lease may need to be renegotiated at a later date if Nelbro were to receive use of the waterfront property. Gates suggested that before negotiations begin, the feasibility study should be completed. Schaefermeyer stated that he would not recom- mend any option on a piece of property to Nelbro at this time without some compensation. Simutis said that this was a complex issue and she was uncomfortable making any decision at this point. She noted that the council should look at what con- stitutes the best use for the property, stating that year 'round work is more desirable than seasonal work. .. f'\.'" , \-, ... ..,; .... CIT.DISCUSSION: Scott Lust - Port Comm. Report CIT.DISCUSSION: A.J. Paul - SAAUS PAGE 106 VOLUME 25 REGULAR MEETING - APRIL 23. 1990 Burgess noted that this was a topic worthy of a work session so that the community could express their interest and be heard. Dunham stated that it was encouraging to see that no lease incentives were requested. She voiced concern about having enough cannery workers available for another facility but she did not want to say no to anyone. Sieminski asked how long the facility would be open each year. Beeston replied that once the feasibili- ty study was complete, he would be able to answer that question better. Hilton stated that he would like to see employment offered during the whole year. Noll concurred with Burgess that a work session should be held to discuss this issue. He thanked Mr. Beeston for his presentation. RECESS: The meeting was recessed at 9: 03 p.m. and reconvened at 9:10 p.m. Mayor Noll requested that New Business, Item C., Marine Mammal Center - IMS, be moved to Presentations with Prior Notice, Item C., since a number of people in the audience were present to speak to that issue. B. SCOTT LUST, Port Development Committee, reported that the committee had reviewed the small boat harbor tariff and was recommending it to the Council for approval. He noted that the committee was not in favor of granting the requested variance on fish tax to Allied Processing. The Corps of Engineers preliminary survey on the small boat harbor expansion should be ready in July. He stated that the traffic pattern at 4th Avenue and Old Harbor Road needs to be reorganized since it is a heavy traffic area and more businesses will be in the harbor this year. simutis thanked Lust for taking the time to come to the meeting with his report. C. A. J. PAUL, 611 6th street, stated that in the fifteen years he had been with IMS, he had seen studies on marine life come to a halt due to a lack of funding from the state. He noted that the SAAMS group and an internal group at IMS are looking at various funding sources to create a marine mammal center to study mammals. with the declining population of sea lions, fur seals, etc, there is a need for further study but no I I I :07 PAGE 107 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 facility in which to study these animals. In the past and present, the U of A scientists have had to perform their work in California or the Antarctic. Students are being turned away who are interested in the study of marine mammals. He noted that IMS has the only sea water-running lab in Alaska and it is in close proximity to the sea lion haul out areas. The benefits offered to the community from a marine mammal center include possibly nine new jobs, increased revenue for the city and a tourist attraction which could aid in helping the revitalization of downtown Seward. LEE MC ANERNEY, 207 Bear Drive, stated that the Seward Association for the Advancement of Marine Science (SAAMS) was an offshoot of the advisory committee to the University of Alaska. It is a non profit corporation whose main goal is to secure foundation funds for the city. TOM SMITH, 515 Second Avenue, stated that six of the twenty three positions at IMS were stated funded and the remaining positions were federally funded. If a marine mammal center were to be built, there would be an increase of thirteen to fifteen new jobs locally. Schaefermeyer stated that the concept and idea needed to be presented to various individuals including Secretary of the Interior Lujan, the KPB Multi-agency group, NOAA, the Coast Guard, State Fish and Game, National Park service, U. S. Fish and wildlife. Seward is in need of a multi-use dock for the ferry and IMS and a new dock to berth cruise ships. The latest study on wind and wave conditions favors installing a cruise ship dock around the point on 7th Avenue. It is vital to the downtown area to keep the ferry/IMS dock downtown as well as develop a cruise ship dock in the future. Meehan stated that he was pleased to see so many interested citizens in the audience who were willing to present this plan. He expressed his support of the research done at IMS and noted that a marine mammal center would be an added attraction to the city. Noll noted that April 30, May 1 and the first week of May, Soviet delegates would be visiting Seward from the USSR Academy of Medical Science. He stated that the marine mammal center was important to public educa- tion because it provided science and research on one end and a tourist attraction on the other. He stated that the next step was to get an estimate for an architectural study. -rr- ',,, ... '" (- PAGE 108 REGULAR MEETING - APRIL 23. 1990 ORDINANCES AND RESOLUTIONS: VOLUME 25 XI. 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 SECTION 2.05.030 (1) OF THE SEWARD CITY CODE RELATIVE TO THE ACCESS TO CITY EMPLOYEE PERSONNEL RECORDS Schaefermeyer stated that this ordinance would clarify which public records could be exempt from dis- closure. These records include personnel records which contain confidential matters such as medical history or financial records. He noted that this was proposed to keep the city in line with a recent Supreme Court deci- sion on the matter. Meehan stated that the term "unwarranted" was broad and could be interpreted in a number of ways by different people. Arvidson replied that the intention of the wording was to spell out which records were not to be disclosed at all. SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 631; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. 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, AMENDING SECTION 3.60.020 OF THE SEWARD CITY CODE PERTAINING TO THE EMPLOYMENT OF FAMILY MEMBERS Schaefermeyer explained that the definition was expanded to include a complete list of family mem- bers who could not be hired and supervised by a member of their immediate family. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 632; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. PAGE 109 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 B. Ordinances for Public Hearing & Enactment: II 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, ALASKA, APPROV- ING THE FIRST AMENDMENT TO THE LEASE AGREEMENT WITH INLET FISHERIES, INC., AND CONSENTING TO THE ASSIGN- MENT THEREOF Noll ruled that Meehan would abstain on this issue due to a conflict of interest since he was employ- ed by a competitor of Inlet Fisheries, Inc. I Schaefermeyer explained that the lease would be changed to define the relationship Inlet Fisheries would have regarding repair and maintenance of the dock and the other change allows assignment of the lease to a separate entity under the control of Inlet Fisheries, Inc. BURGESS MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-038; THE MOTION WAS SECONDED BY DUNHAM AND CAR- RIED BY UNANIMOUS CONSENT WITH MEEHAN ABSTAINING. XII. UNFINISHED BUSINESS: A. Placement of "Welcome to Seward" siqns. Yanez informed the council that the original plan for the placement of the city signs had been altered. He proposed to place the large welcome sign by the lagoon next to the boardwalk and move the All American City sign from the lagoon area to a place across from the airport. He noted that the ground across from the airport has a steep slope and the sign would need to be elevated twelve feet for easy viewing from the road. The downtown sign would be placed in front of the Cham- ber of Commerce Visitor's Center and the small boat harbor sign would be placed in close proximity to Bob's Market. The Council agreed with the placement of the signs. XIII. NEW BUSINESS: I A. Claim for Damaqes - Deane Nelson dba Van Gilder Hotel. 109 RESO/RE- Amendment No. 1 to Inlet Fisheries Lease approved SIGNS/PROMOTION: Placement of Welcome signs CLAD! FOR DAHAGES: D.Nelson claim APPROVED ....... "'" ..... tJ PAGE 110 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 MEEHAN MOVED TO PAY AN AMOUNT NOT TO EXCEED $ 200 . 00 FOR REPAIR OF THE DAMAGED GARBAGE RACK AND WINDOW LOCATED IN THE ALLEY WAY OF THE VAN GILDER HOTEL; THE MOTION WAS SECONDED BY HILTON. Burgess statd that he had recently looked at a number of alleys in the city and noticed that most people have encroached into the right of way. He stated that the city grader requires so much room to keep these places cleared of ice and snow but due to the encroach- ments, it is hard to maneuver the equipment in some areas. He suggested that the city should clean up these problems. He stated that a garbage rack could be built inside of the property line at the Van Gilder. Schaefermeyer concurred stating that he would work on ways to deal with the problem in the future. He noted that a solution may not be forthcoming without some changes in building designs. THE MOTION WAS APPROVED BY UNANIMOUS CONSENT OF THE COUNCIL. cm-:- B. Chanqe Orders No. 1 and 2 to the contract with Construction and Riqqinq for construction of the 250 ton travelift dock at the Seward Marine Industrial Center. SIMUTIS MOVED TO APPROVE CHANGE ORDERS NO. 1 AND 2 TO THE CONSTRUCTION AND RIGGING CONTRACT TO INCREASE FUNDING FOR THIS PROJECT BY $13,106.00; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer stated that the increase in funding was needed due to a requirement for a larger diameter piling to accommodate the expanded width of the deck. He noted that this is within the available funding for the project. THE MOTION WAS APPROVED BY UNANIMOUS CONSENT OF THE COUNCIL. XIV. CITY MANAGER REPORTS: Chris Gates introduced two representatives, Hans Schaefer and Bob Confer, from Todd Pacific Ship- yards, Seattle. Schaefermeyer noted that a Planning Commission work session was scheduled for 7:00 p.m. on April 24 and a public meeting was scheduled for 7:00 p.m. on April 25 to discuss the comprehensive plan with Hyett Palma. I I I .,.-- PAGE 111 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 A budget work session with the council and the hospital board was scheduled for Monday, May 7 at 7:00 p.m. xv. COUNCIL DISCUSSION: DUNHAM stated that the quality of life ques- tionnaire which was randomly distributed throughout town had no validity since it was not given to everyone. She noted that the city looks terrible with trash everywhere. SIMUTIS informed the council that she had an opportunity to speak with some tour operators from out of town and they expressed their pleasure in coming to Seward. She stated that the railroad had been down with a group of trainees on one of their cars for the purpose of enlightening them on what Seward has to offer. She reminded the council to submit the evaluation forms for Patsy Jones to her. HILTON stated that he had been to Juneau to testify on SB 319, the health care package, but the outlook was not good. He said that the legislators do not feel much pressure from Seward and encouraged everyone to phone in a public opinion message. NOLL thanked Acting City Clerk Jones for the past six months service. He stated that clean-up week would be held from May 12 to May 19. Parks & Recreation Director Josey outlined the clean up program at the request of Noll. NOLL stated that he had met with Alaska Railroad President Turpin and his three vice presidents. They discussed paving of the area around the railroad depot and talked about cleanup in the industrial area. NOLL stated that he and the Mayor of Cordova had been nominated for two vacant positions on the Alaska Marine Highway System Advisory Board noting that Seward needed to have better representation on this board. XVI. CITIZENS'S DISCUSSION: BOB VALDATTA, 528 5th Avenue, suggested that the Nash Road Harbor should be built since the Seward Marine Industrial Center is getting full. CHRIS GATES, Johnstone Rd., reported on the Regional citizens Advisory Committee. He stated that the group would be in Seward for a workshop on May 7 and 81 and the public was invited. --r-- . . .... ,~~ PAGE 112 REGULAR MEETING - APRIL 23. 1990 VOLUME 25 XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None. XVIII . ADJOURNMENT: The meeting was adjourned at 10:42 p.m. The Council met in executive session following a brief recess. --? - ;",,~ .j - \ r\--.-r-- 0..<2-/ r A?'t.~>(l., ., .... ~ Mayor :: c} " ..~.;rC ?~:.' Se~U ...\ i. ~ SE AL )~. -. .... . . \ ..,.....~ ~",.... ., J' .'.,~.. 1. \.~.,.'~,.. --~~-~------------------------------------ PAGE 112 SPECIAL MEETING - MAY 2, 1990 VOLUME 25 h CALL TO ORDER: The May 2, 1990, special meeting of the Seward City Council was called to order at 12:07 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 Hilton, Meehan, Sieminski and Simutis (Simutis arrived at 12:45 p.m.; Burgess and Dunham were excused) Present also: City Manager Schaefermeyer, Deputy City Manager Yanez, City Attorney Arvidson, Finance Director Gifford, Police Chief Bencardino and City Clerk Murphy I I I IV. APPROVAL OF SPECIAL MEETING AGENDA: MEEHAN MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITHOUT OBJECTION. Y....... CITIZENS COMMENTS ON AGENDA ITEMS NOT SCHEDULED FOR PUBLIC HEARING: (2 minutes per individual; 30 minutes total time allotted - Please sign in.) None VI. 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, APPROV- ING AN AMENDMENT TO THE COLLECTIVE BARGAINING AGREEMENT WITH THE INTER- NATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL UNION 1547. HILTON MOVED TO APPROVE RESOLUTION NO. 90-039; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer stated that this resolution would approve a Letter of Agreement which would become a part of the city's current collective bargaining agreement with IBEW and would provide that the city would, to the extent permitted by law, assure that only contractors signatory to labor agreements with IBEW would be allowed to bid on construction of the 115 KV line from Lawing to Seward. As a part of the Agreement, IBEW had agreed to indemnify the city against claims arising from this provision provided that the city amends its Code of Ordinances to allow such prequalification no later than the first regular Council meeting in June. Schaefermeyer stated that approval of this Agreement was intended to overcome opposition in the Legislature to project funding since it would assure, as much as possible, that the work would be performed by an Alaskan contractor. RECESS: The meeting was recessed at 12: 12 p.m. and reconvened at 12:25 p.m. Arvidson stated that the city's position throughout negotiations had been that since the Agreement would benefit the Union, the Union should bear the risk. He noted that other utilities have similar agreements concerning contracting of work, and he had attempted to justify the Agreement as both "work justification" and a "construction industry agreement". Arvidson added that, in his opinion, this amendment constituted the minimum change to the existing agreement to meet the parties' objectives. 113 RESO/IBEW: Amending Collective Bargaining Agrmt ....../. PAGE 114 SPECIAL MEETING - MAY 2, 1990 VOLUME 25 Sieminski asked if this amendment would require the Union to admit Seward area residents into the Union. Arvidson stated that this had not been addressed. However, hiring hall practices and procedures were generally considered to be within the purview of the Union. In addition, the definition of "local hire" varied. The courts have geld that local means "Alas- kan", while the city generally refers to "Seward area residents" and the Union considers "local" to be a "union member" . Sieminski stated that he would only support the amendment if it contained a requirement that twenty percent of the work force be comprised of local citizens. Arvidson stated that such a requirement could not easily be added to a Union contract. He noted that the Council could adopt an ordinance to that effect; however, it would likely be overturned in Court. Noll suggested that IBEW could be persuaded to open an office in the city for a few days to accept ap- plications from Seward residents interested in obtaining Union cards for positions for which they qualified. Arvidson noted that, during construction of the Prison, the city had encouraged local residents interested in jobs with Department of Corrections to obtain the neces- sary training at AVTEC or elsewhere to qualify for the new jobs. As a result, several Seward residents were now employed at the Prison as correctional officers or in other positions. In response to a question from Hilton, Schaef- ermeyer stated that there would probably be as many as sixty people working on the transmission line project at anyone time, although that number would not be employed throughout the estimated one year life of the project. Meehan said that the Council's hands were effectively tied. He stated that if the city did not agree to the IBEW contract amendment, funding for the project would probably be lost. Noll asked for an explanation of the Code amendment to which the Agreement referred. Arvidson explained that the amendment would allow a requirement that bidders be signatory to an IBEW agreement; however it would not guarantee that future jobs would be bid in this manner. NOTE: Simutis arrived at 12:45 p.m. I I I ..."""!',.... -. ~:) PAGE 115 SPECIAL MEETING - MAY 2, 1990 VOLUME 25 Simutis stated that she supported the Agreement as written and agreed that the city should encourage local recruitment. Hilton concurred with Meehan that the city must approve the Agreement if the project was to go forward. He also noted that Friday, May 4, was Career Day at the local high school and suggested that the various trade unions participate in this annual event to let young people know what is required to qualify for union cards. THE QUESTION WAS CALLED, AND RESOLUTION NO. 90- 039 WAS UNANIMOUSLY APPROVED. VII. VI II . CITIZENS' DISCUSSION: None COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None IX. ADJOURNMENT: The meeting was adjourned at 1:10 p.m. ~~ W11liam C. Noll --- Mayor a S } ~ y l!!trk ~.! .~EA~ t C1 y Sea) ._ ::?,. --' ~ -:. '., ....c" ~.., ,: I:- %'" '",~... 1, "',' ,.,(-.~ ^')- ", " <:.:'" I' ~~r.---~-~=~~---------------------------------------- PK~~~rREGULAR MEETING - MAY 14, 1990 VOLUME 25 I. CALL TO ORDER: The May 14, 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: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Hilton, Mee- han, Sieminski and Simutis ~.~.c PAGE 116 REGULAR MEETING - MAY 14, 1990 VOLUME 25 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 Direc- tor Gifford, Harbormaster Sin- gleton, Parks & Recreation Di- rector Josie, Librarian Nicol- as, Police Chief Bencardino and City Clerk Murphy PROCLAMATIONS: A. Noll presented Dr. Richard Alapack, Clinical Director of Seward Life Action Council, with a proclamation designating May 1990 as Mental Health Month in Seward. B. Noll presented Richard Jones, Adminis- trator of Wesleyan Nursing Home, with a proclamation designating May 5-13, 1990, as Nursing Home Week in Seward. C. Noll presented Parks and Recreation Director will Josie with a proclamation designating May 12-19, 1990, as Super Saturday Week in Seward. D. Noll noted that he had proclaimed May 5, 1990, to be Seward Sanitorium Day and had presented the proclamation at a ceremony on that day honoring Paul Nelson and Dr. F. J. Phillips for the care and treatment provided to Alaskans afflicted with tuberculosis from 1946-1959. IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE APRIL 23 AND MAY 2, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: Sewall was not present and no report was given. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None VII. I I I PAGE 117 REGULAR MEETING - MAY 14, 1990 VOLUME 25 VII I . APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. The following actions were taken: A. professional Applications, approved; Resolution No. 90-040, authorizing a services agreement with Utility Systems and Inc., for the city's annual meter audit was B. Resolution No. 90-041, authorizing the assignment of Boardwalk Lease site No.4, was approved; C. Resolution No. 90-042, establishing community development fees, was approved; 117 RESO/CON- meter audit Annual RESO/RE- : Assgn. Boardwalk Lease Site No.4 RESO/FEES: Establish. Com.Dev.Fees D. Resolution No. 90-044, awarding a contrac~ RESO/CON- /STREETS: for striping streets and crosswalks, was approved; , Striping contract E. Resolution No. 90-046, appropriating sales RESO/SGH: Approp. tax contributions to Seward General Hospital, was Sales Tax Revenues approved; F. as follows: Invoices for legal services were approved C.ATTY: Perkins Coie: March 1990 - $37,143.98 April 16, 1990 - $1,105.70 Wohlforth: May 3, 1990 - $856.83 May 4, 1990 - $5,216.61 G. The second May Council Meeting was rescheduled to Tuesday, May 29, 1990, as requested; C.COUNCIL: Reschedule Meeting H. Change orders to the H2W Constructors' CON- contract were approved as follows: No. 6A - Furnish and install approximately 85 l.f. of Chemelex, heat trace or equal inside cast iron pipe, and wire heat trace to breaker and thermostat (+$7,336); and No. 7A - Complete all electrical finish work in Prison Industries Addition with the exception of lighting and receptacles (+$133,360); I. Seward General financial report for the period was noted for information; and Hospital's quarterly SGH: Quarterly ending March 31, 1990, Financial Report -...,...., , BOARD OF ADJUSTMENT: Carr Gottstein appeal of denial of Variance PAGE 118 REGULAR MEETING - MAY 14, 1990 VOLUME 25 J. City of Seward's quarterly financial report for the period ending March 31, 1990, was noted for information. IX. PUBLIC HEARINGS: A. Notice of Board of Adjustment Hearing, as posted and published as required by law, regarding an appeal of the denial of a request for VARIANCE as filed by Carr Gottstein, Inc. (C-G), was noted, and the public hearing was opened. Schaefermeyer noted the Board of Adjustment packet. He reminded Council that no new evidence could be taken at this time, but appellant could present his case to the Council. Arvidson noted that a decision could either be made at this meeting or Council could meet in Executive Session to discuss the appeal and prepare its decision. PAUL CARR, 10661 Makushin, Anchorage, 99515, appeared on behalf of C-G. He distributed a packet of information to the Council containing his original request for Variance, including attachments. One of the attachments was an earlier memorandum (September 1988) prepared by Kerry Martin when Carr had initially sought a Variance. At that time, Martin had recommended approval of the request. C-G subsequently decided not to pursue the Variance. However, construction of a Pharmacy within the store had precluded expansion of the fresh food department at the south end of the structure. CARR noted that Martin had mistakenly failed to provide a copy of his earlier staff memorandum to the Commission when his most recent request for Variance was heard. CARR stated that the grocery business was constantly changing, and C-G had found a greater need in Seward than had been anticipated. He noted that the building had been placed as far back on the property as possible in order to assure that there would be adequate parking even if the 40-foot roadway easement was taken. CARR asked that either the Council grant the Variance or remand it back to P&Z so that Martin's earlier staff memorandum could be considered. In response to a question from HILTON, CARR stated that the freezer van would have a foundation and would be painted and striped to tie in to the main building. He also stated that state health codes have changed requiring more room for a preparation area for the salad bar. I I I 119 PAGE 119 REGULAR MEETING - MAY 14, 1990 VOLUME 25 DUNHAM asked if a market survey had been done. She noted that Carr had closed the downtown store three months into its operation which must indicate that the extra space was not needed. CARR stated that he could not respond to Dunham's statement without research. MEEHAN questioned CARR's statement in the packet that the Pharmacy was not profitable, but operated in the red. He also stated that he would have a diffi- cult time over-riding the Planning Commission. However, he would support remanding it back to the Commission. CARR stated that this would be acceptable to him. NOLL noted that the competitively priced drugs and groceries offered by Eagle Quality Center were a boon to the community. He asked if the store could program its computers to separate nontaxable "necessities of life" from taxable items if the borough tax code were amended. Carr replied that this was possible. Schaefermeyer stated that the staff had felt constrained to strictly interpret the Code when making recommendations to the Commission. However, there was latitude on the part of the Commission to provide relief if they found it in the public interest to do so. In this case, the Commission found that it could not grant relief. It was now up to the Council to review the record and make a decision based on this record and any legal issues presented during the appeal. He noted that it was certainly within the purview of the Council to instruct the Commission to look at the two provisions or pieces of information the appellant had brought to the Council. Therefore, it would be appropriate to consider remanding this back to the Commission with instructions to look at the financial hardship question and the special conditions created by the addition of the Pharmacy. SIMUTIS stated that since there was evidence which the Commission did not see, the Variance should be remanded back to P&Z with instructions that the Commis- sion take particular note that there were no objections on the part of adjoining property owners and that there would be minimal impact. SIMUTIS MOVED TO REMAND THE REQUEST FOR A VARIANCE BACK TO P&Z WITH THE INSTRUCTIONS NOTED ABOVE; THE MOTION WAS SECONDED BY MEEHAN. BURGESS stated that it would seem that, if granted to this property owner, the owner to the north would be entitled to a like variance which could create a fire hazard. 120 PAGE 120 REGULAR MEETING - MAY 14, 1990 VOLUME 25 MEEHAN agreed that the variance should be remanded back to P&Z to let them make the decision. HILTON asked why the financial hardship clause was included in the ordinance. Schaefermeyer stated that this provision seemed to be in most zoning codes and was intended to assure that the applicant had a legitimate reason for asking for the variance. He stated that the administration would try to come up with a better standard for review. HILTON stated that while financial hardship should not be the sole test for granting a variance, it should also not be the sole reason for denying it. He added that granting this variance would not bind the Council to granting a similar variance for the neighboring property owners. NOLL asked that the administration also check into fire standards for the addition which would provide adequate protection to neighboring buildings. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH SIX "YES" VOTES AND DUNHAM VOTING "NO". B. Notice of public hearing, as posted and published as required by law, regarding the proposed Fiscal Year 1991 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. NOLL noted the work session schedule, including recent changes to the schedule. (May 24 rescheduled to May 23; May 31 rescheduled to June 4.) X. PRESENTATIONS WITH PRIOR NOTICE: RECESS: The meeting was recessed at 8: 30 p.m. and reconvened at 8:40 p.m. 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 SECTION 15.10.224 AND 15.10.240(C) OF THE CITY CODE REGARDING BED AND BREAKFAST REGULATIONS. I I I PAGE 121 REGULAR MEETING - MAY 14, 1990 VOLUME 25 MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 633; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer noted that this ordinance had the Planning Commission's recommendation. SIEMINSKI asked why there were no restrictions on operating a B&B in a commercial zone. Schaefermeyer noted that there should be very few restrictions on operating a business in a commercial zone. In response to Sieminski's question about using a percentage rather than a number of bedrooms in the ordinance, Schaefermeyer stated that the Commission wanted to assure that the commercial aspects of the structure did not exceed the residential use. THE QUESTION WAS CALLED, AND PROPOSED ORDINANCE NO. 633 WAS INTRODUCED BY UNANIMOUS CONSENT. Public hearing was scheduled for May 29, 1990. 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, AMENDING CHAPTER 3.65 OF THE CITY CODE RELAT- ING TO LABOR AGREEMENTS FOR CON- STRUCTION OF PUBLIC PROJECTS. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 634; THE MOTION WAS SECONDED BY SIMUTIS; THE QUESTION WAS CALLED, AND PROPOSED ORDINANCE NO. 634 WAS INTRODUCED BY UNANIMOUS VOTE OF THE CITY COUNCIL. Public hearing was scheduled for May 29, 1990. B. Ordinances for Public Hearing & Enact- ment: 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 SECTION 2.05.030 (1) OF THE SEWARD CITY CODE RELATIVE TO THE ACCESS TO CITY EMPLOYEE PERSONNEL RECORDS. Notice of public hearing as posted and pub- lished as required by law was noted, and the public hearing was opened. 121 ORD/PERSONNEL: Regs re access to personnel records 122 ORD/PERSONNEL: Employment of family members RESO/CON- Contract for disposal of PCB Contaminated materials PAGE 122 REGULAR MEETING - MAY 14, 1990 VOLUME 25 No one appeared in order to be heard, and the public hearing was closed. HILTON MOVED TO ENACT ORDINANCE NO. 631; THE MOTION WAS SECONDED BY MEEHAN. BURGESS asked if this ordinance was introduced as a result of a recent case involving the Anchorage librarian. ARVIDSON stated that the referenced case was part of the reason for preparing the ordinance. He noted that the Legislature had enacted legislation which could affect this proposed ordinance, and he recommended that the Council postpone action on the ordinance until a copy of the signed bill could be reviewed by his office. HILTON MOVED TO POSTPONE UNTIL JUNE 25; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED BY UNANIMOUS CONSENT. 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, AMENDING SECTION 3.60.020 OF THE SEWARD CITY CODE PERTAINING TO THE EMPLOYMENT OF FAMILY MEMBERS. 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. 632; THE MOTION WAS SECONDED BY SIMUTIS; THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH UNANIMOUS CONSENT. 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, AWARDING A CONTRACT FOR THE DISPOSAL OF PCB- CONTAMINATED MATERIALS WITHOUT FULL UTILIZATION OF CITY BID PROCEDURES. I I I ., nf", 1 Lu:) PAGE 123 REGULAR MEETING - MAY 14, 1990 VOLUME 25 SIMUTIS MOVED TO ADOPT RESOLUTION NO. 90-043; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer noted that the city had the opportunity to contract with the borough's onsite con- tractor to remove from the city's inventory several electrical transformers containing less than 500 ppm PCB contaminants. He noted that use of these transformers is permitted, but the city has no space for adequate storage. Funding for the project has been included in the FY 1991 budget proposal, and invoicing would occur after July 1, 1990. BURGESS asked why the city was contracting without full utilization of bid procedures. Schaefer- meyer noted that this was a specialized business, and the contractor in question was the only one in Alaska licensed by EPA for disposal of hazard materials. The City Manager noted that the contaminated material would be buried in a landfill in Oregon. HILTON asked if the city could flush the trans- formers and continue to use them. Schaefermeyer stated that this had been done, but regulations had been tight- ened so that the transformers could not be used if any contamination was present. MEEHAN asked if these were among the trans- formers flushed in 1982. Diener stated that these transformers had not been flushed, and they were cur- rently stored for re-use. At the present time, the transformers were serviceable and could be used. How- ever, if a transformer should leak PCB contaminants, the clean-up would be quite costly. He added that the risk of leakage was greater than the cost of disposal. MEEHAN asked if these transformers were new. Diener stated that they had been used and the presence of PCB's had been discovered over the past two years of testing. MEEHAN asked if the borough requested proposals before contracting with Northwest Enviroservice. Schaefermeyer stated that he did not know, but he thought they were the only ones in the area authorized to dispose of these contaminants. NOLL asked who was doing the "oily rag" clean up for Exxon. Schaefermeyer stated that the contractor was Chemical Waste Management (CWM), and he did not know if they were qualified to do this work. Jack Anderson stated that he had contacted CWM and had discovered that two different laws govern the disposal of contaminated materials. CWM operates under one law, but PBC-con- taminants are covered under another law. Anderson noted that it was not mandated that the city dispose of the 124 RESO/RE- /LEASE: Short term lease to Exxon - Wild- life Rescue Center CLAIM FOR DAMAGES: S.Cavanaugh claim DENIED PAGE 124 REGULAR MEETING - MAY 14, 1990 VOLUME 25 transformers at this time, but the minute the Council determines that we should dispose of them, the clock starts ticking and the city would be on a very tight time frame for disposal. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH UNANIMOUS CONSENT. 2. 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- ING A SHORT TERM LEASE OF CITY PROP- ERTY WITH EXXON COMPANY, U. S . A., FOR THE OPERATION OF A WILDLIFE RESCUE CENTER. SIMUTIS MOVED TO ADOPT RESOLUTION NO. 90-047; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that this was a short term lease which he had already executed as authorized by the City Code. However, formal ratification was needed by the Council. In response to a question from BURGESS, Schae- fermeyer stated that once the lease ceased, Exxon would be required to remove everything from the property and clean up the site. Arvidson stated that Exxon antici- pated moving out in September or October and would be coming back to the Council for a longer term lease to run through that time. SIEMINSKI stated that he would vote in favor of the resolution if there were no office spaces on the site. THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: XIII. NEW BUSINESS: A. MEEHAN MOVED TO APPROVE THE CLAIM FOR DAMAGES TOTALLING $750.00 AS FILED BY SHIRLEY CAVANAUGH; THE MOTION WAS SECONDED BY SIMUTIS. Note: Ms. Cavanaugh's written claim stated that she was seeking $750.00 to cover the loss of certain household equipment which had been destroyed as a I I I 125 PAGE 125 REGULAR MEETING - MAY 14, 1990 VOLUME 25 result of a "blow-out of the electrical system" at the rental unit she had occupied at 509 Monroe St. SHIRLEY CAVANAUGH, Olsen Trailer Court, Space 15, stated that following the electrical "blow-out", city lineman Tom Evans checked the voltage at the meter base at the residence and was unable to get a steady voltage reading. He then went onto the roof, snipped the connector and added a new one. At that point, he was able to get a steady voltage reading at the meter base. She contended, therefore, that the problem would appear to have been on the city-side of the service. Utility Engineer Jack Anderson stated that he sympathized with Ms. Cavanaugh. However, after reviewing the case with Evans, he had concluded that the electrical problem had occurred in the meter base which was the responsibility of the customer, not the city. He stated that Evans checked both the meter base and the connec- tors. After making minor adjustments in the meter base, the customer was encouraged to change out the meter base. to prevent the problem from re-occurring. Anderson noted that quite a bit of corrosion was found in the connectors within the meter base. He also stated that he had saved the connectors removed from the roof of the residence, had tested them several times and found them to be in good working order. In response to a question from Noll, Cavanaugh stated that she did not own the property in question, but was renting. Noll asked if the city performed any routine inspections. Schaefermeyer stated that the city in- spected in accordance with the NEC and whenever city personnel performed work on the service, however, routine inspections were not carried out. HILTON asked if the tenant had recourse against the landlord. Arvidson replied that this would depend to some extent on the rental agreement between the landlord and tenant. Generally speaking, the landlord would be responsible for plumbing, electrical, etc. HILTON said that, in this instance, it might be more appropriate for Cavanaugh to pursue her claim against the landlord. NOLL stated that, at some point, the Electric Department should look at some sort of inspection program for older buildings. He asked the City Manager to get back to the Council with a recommendation as to how this could be accomplished. HILTON stated that he had asked the attorney and manager some weeks ago about the city's respon 12(, BILLING DISPUTE: BCMHP request for adjustment DENIED PAGE 126 REGULAR MEETING - MAY 14, 1990 VOLUME 25 sibility or authority to inspect some of the rental properties in town and was told that the city had no authority to do so. Arvidson stated that the city could amend the Code to give this authority. In response to a question from Dunham, Arvidson stated that if the program were undertaken, the city would then have the responsi- bility to follow through with it. DUNHAM stated that she agreed with Hilton that there were some rental properties in town that were not fit for human habitation. BURGESS MOVED TO AMEND THE MOTION BY PAYING ONE-HALF THE AMOUNT OF THE CLAIM; THE MOTION WAS SECONDED BY HILTON. HILTON stated that he would not support the motion. MEEHAN concurred and stated that he did not want to set a precedence with this case. THE QUESTION WAS CALLED ON THE AMENDMENT AND THE MOTION FAILED WITH FIVE "NO" VOTES AND BURGESS AND NOLL VOTING "YES". THE QUESTION WAS CALLED ON THE MAIN MOTION AND THE MOTION FAILED WITH ALL PRESENT VOTING "NO". NOLL stated that he hoped the city could find a way to help renters and others with like problems. RECESS: The meeting was recessed at 9: 55 p.m. and reconvened at 10:05 p.m. B. HILTON MOVED TO APPROVE THE ADJUSTMENT AS REQUESTED BY BEAR CREEK MOBILE HOME PARK; THE MOTION WAS SECONDED BY SIMUTIS. Note: The owner and manager of Bear Creek Mobile Home Park asserted in an April 24, 1990, letter to the City Manager that the city had improperly altered the Mobile Home Park's electric bill for two consecutive months resulting in a three-month delay in discovering that an excessive amount of electricity was being used by the Park, and because of this delay, BCMHP was unable to correct the situation or recoup its losses from its customers. The Administration recommended denial of the request to adjust the billing since the corrected billing was for electricity actually used by the Park. THE QUESTION WAS CALLED AND THE MOTION FAILED WITH ALL VOTING "NO", XIV. CITY MANAGER REPORTS: I I I 127 PAGE 127 REGULAR MEETING - MAY 14, 1990 VOLUME 25 SCHAEFERMEYER noted the request presented to the Council by the Chamber requesting matching funds from the city to help offset the cost of attending the Cruise- a-thon in Vancouver, B.C. He stated that, if there was no objection from Council, he would advance the monies and come back to Council at the next meeting for a budget amendment. SCHAEFERMEYER noted the Noon work session on Monday to go over the various DOT issues in the Seward area. Leqislative Report - $9.5 Million was appro- priated by the Legislature for the city's transmission line upgrade. In addition, $45,000 was received to assist in financing a replacement clinic for the local physicians. Also, funds appropriated about 6 years ago to assist Puffin Public Broadcast group had lapsed and were re-appropriated with the help of Representative Kubina. Monies were also appropriated for the unit coal train which would benefit the coal export facilities in Seward. Two university projects were funded (in Anch- orage and Fairbanks) which could strengthen the city's position regarding funding for IMS expansion. SCHAEFERMEYER complimented Dawson for his work on behalf of the city during the last legislative ses- sion. SCHAEFERMEYER stated that the city has re- quested that the borough look at some changes to the sales tax ordinance. Currently, the city is waiting for a draft ordinance from the borough attorney for review. He stated that he hoped to have a more detailed report for the Council at the next meeting. SCHAEFERMEYER thanked the staff for par- ticipating in the start of the city clean up program. XV. COUNCIL DISCUSSION: DUNHAM stated that this was the best clean up she had seen in years. She said she hoped the itinerant merchant issue would be considered by the borough when amending the tax code. She also stated that she hoped the new university president would consider marine science a priority for the university. MEEHAN also thanked the administration for cleaning up Seventh Avenue. NOLL reminded everyone that the work session on the Harbor budget was scheduled for May 17. 128 PAGE 128 REGULAR MEETING - MAY 14, 1990 VOLUME 25 XVI. CITIZENS' DISCUSSION: None XVI I. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVI II . ADJOURNMENT: The meeting was adjourned at 10:20 p.m. ~~ W~ ~am C. N~ll Mayor E I I U ------------------------------------------------------ PAGE 128 I. REGULAR MEETING - MAY 29, 1990 CALL TO ORDER: VOLUME 25 The May 29, 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: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Hilton, Meehan, Siemi- nski and Simutis (Dunham was excused) I I I 129 Present also: City Manager Schaefermeyer, city Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Harbormaster Singleton, Parks & Recreation Director Josie, Librarian Nico- las, Police Chief Bencardino and City Clerk Murphy AWARDS PRESENTATION: The Mayor and P&R Director thanked the sponsors of the Super Saturday Cleanup drive. Noll then presented awards to the Seward Girl Scouts for the group picking up the most bags of litter and to Daniel Shea for the individual who picked up the most bags. PRESENTATIONS: Super Saturday Awards IV. APPROVAL OF MINUTES: Minutes were not available for approval~ V. APPROVAL OF REGULAR MEETING AGENDA: ~. .~ '. " " .' - "! "::r. SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN.. z ,~ 'I{,;....'l Schaefermeyer noted that a memorandum (Item' :..' K/Consent Agenda) had been distributed prior to the meeting recommending that the city fund participation at KATFA 1990 by the Mayor with assistance from In Jae Kim. Schaefermeyer also asked that the Council add Item "c" to New Business - Approval of location of a new Doctors' Clinic. THE AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS CONSENT. VI. BOROUGH ASSEMBLY REPORT: None VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: WAYNE CARPENTER, 2001 Old Seward Highway, representing the Chamber of Commerce, reported on the recent "Cruise-a-thon" in Vancouver. He stated that Seward was the only Alaskan community represented, and the trip was a real success. Carpenter said that tour agents were looking for reasons for people to come to Seward to help in sales promotion. He also noted that the State Chamber of Commerce was scheduled to meet in Seward June 1-3, 1990. He invited the Mayor and Council CIT. DISCUSSION: Wayne Carpenter -,:,n .. . ~..1 "" RESO/DAYCARE: Auth. participation RESO/CON- (Clearing) RESO/CON- Repair Gen. RESO/CHAMBER OF COUMERCE: Approp. funds RESO/BANK ACCT: Auth. Signatures C.ATTY: PAGE 130 REGULAR MEETING - MAY 29, 1990 VOLUME 25 to a reception at 6:00 p.m. on Friday, June 1, and to attend the Board meeting on June 2. Carpenter thanked the city for its support of the Chamber's trip to Vancouver. CHRISTY JOHNSON, 1809 Jesse Lee Drive, reported on her trip to Vancouver with her husband and Mickey and Whitey VanDeusen to attend the Cruise-a-thon. The two couples manned the city booth for two days and met with representatives from various cruise lines and travel agents. Johnson reported that everyone seemed eager to talk about Seward. She suggested tat a poster of Seward capturing the real Alaska theme would be a good tool to sell Seward as a destination point. She also suggested a joint mailing of brochures to the tour companies. She stated that she had brought back a directory listing all participating agents and companies. Johnson thanked the city for allowing her to be its representative at the Cruise-a-thon. NOLL thanked Johnson for promoting Seward at the show. 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: A. participation was approved; Resolution No. 90-048, authorizing in the state day care assistance program, B. Resolution No. 90-049, awarding a contract for shrub and tree cleanup and clearing, was approved; C. Resolution No. 90-050, appropriating funds for the repair of the emergency generating equipment, was approved; D. Resolution No. 90-051, appropriating funds for a contribution to the Seward Chamber of Commerce for financial assistance to attend the 1990 Cruise-a-thon in Vancouver, British Columbia, was approved; E. Resolution No. 90-052, authorizing signatures for all city bank accounts and rescinding all previous resolutions in conflict therewith, was approved; F. as follows: Invoices for legal services were approved Perkins Coie: April, 1990 - $26,675.50 I I I 131 PAGE 131 REGULAR MEETING - MAY 29, 1990 VOLUME 25 May 14, 1990 - $297.63 G. Change Order No.1 to the CRW Engineering RESO/CON- Group contract to add design and contract work for sidewalk and overlay of Jefferson street not included in the original contract, for an amount not to exceed $6,444.00, was approved; H. the amounts of tion; Report on Purchase Orders issued between $5,000 and $10,000 was noted for informa- I. Sublease of the Salmon Derby booth by the RE- /BOARDWALK Chamber of Commerce to the Alaska Trolley Car Company was LEASES: approved; J. Sublease of a portion of Lot 2, Block 1, RE- Marina Subdivision, by Joan Clemens to Robert McCants, was approved; IMARINA SUB: K. Memorandum from Assistant City Manager Yanez concerning KAT FA 1990 was noted for information; and L. Application for a new restaurant designa- ABCB: Harina I s Rest. tion liquor license as filed by Milos Nikolic, dba Marina's Restaurant, was filed without objection. IX. PUBLIC HEARINGS: A. Notice of public hearing, as posted and published as required by law regarding the proposed Fiscal Year 1991 operating and capital budgets was noted, and the public hearing was opened. PUBLIC HEARINGS: FY 1991 Budget No one appeared in order to be heard, and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NOTICE: XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Noll noted by title only a proposed ordinance entitled: 132 ORD/BED & BREAKFAST: Action Postponed ORD/IBEW: Modifying Code regarding contracts, re- quiring contrac- tor to have existing agrmt w/IBEW if doing work normally performed by the unit/ PAGE 132 REGULAR MEETING - MAY 29, 1990 VOLUME 25 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SECTION 15.10.225 and 15.10.240(C) OF THE SEWARD CITY CODE REGARDING BED AND BREAKFAST REGULATIONS. 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. 633; THE MOTION WAS SECONDED BY HILTON. SCHAEFERMEYER noted that several areas of concern regarding coordination with various departments within the city had arisen. He stated that the administration would be making various amendments, taking the ordinance back to the Planning Commission for review once again before bringing the ordinance back to the Council on June 11, 1990. He recommended postponement. MEEHAN MOVED TO POSTPONE ACTION UNTIL JUNE 11; THE MOTION WAS SECONDED BY HILTON AND CARRIED BY UNANIMOUS CONSENT. (The Clerk was instructed to schedule a second public hearing for the June 11 meeting.) 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, AMENDING CHAPTER 3.65 OF THE SEWARD CITY CODE RELATING TO LABOR AGREEMENTS FOR CONSTRUCTION OF PUBLIC PROJECTS. 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. 634; THE MOTION WAS SECONDED BY MEEHAN. ARVIDSON noted that this ordinance allowed for a "prehire" agreement, permitting an agreement between a labor organization and the city which would require that contractors performing work commonly done by the labor organization's members would be signatory to an agreement with the labor organization. I I I 133 PAGE 133 REGULAR MEETING - MAY 29, 1990 VOLUME 25 THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS VOTE. C. Resolutions: 1. Copies having been made available to RESO/CON- /AUDIT: the public, Noll noted by title only a proposed resolu- Contract w/Peat tion entitled: Marwick for Audit Services A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A PROFESSIONAL SERVICES AGREEMENT TO KPMG PEAT MARWICK FOR AUDIT SERVICES FOR THE CITY OF SEWARD. HILTON MOVED TO ADOPT RESOLUTION NO. 90-045; THE MOTION WAS SECONDED BY SIMUTIS. SCHAEFERMEYER stated that the city had solicited proposals for audit services on April 9, 1990. In response, four firms had submitted proposals. An evaluation committee consisting of the Finance Director, the Assistant Finance Director and the Hospital Controller reviewed the proposals. Based on their review, the administration recommended that Peat Marwick be retained by the city for a three-year period beginning July 1, 1990, for a three-year total cost of $107,100. He noted that this included audit services for SGH. BURGESS asked why the city was not recommending the low proposer. SCHAEFERMEYER stated that Peat Marwick appeared to be the best qualified to perform the kinds of services required by the city. He stated that with this type of service, price could not be the sole criterion. BURGESS stated that the city's memorandum said that all proposers were qualified. NOLL asked if Vern Johnson would be involved in the city's auditSCHAEFERMEYER said that he would, adding that he was the most qualified person in the state in the area of municipal audits. MEEHAN agreed with Burgess that the lowest proposal should be accepted. GIFFORD stated that all proposing firms were excellent, and three had international experience. However, after reviewing the criteria set by the city, using a point system, Peat Marwick received the highest score. He stated that only Ernst & Young and Peat Marwick made the short list. Of the two, Peat Marwick had the most experience in governmental and hospital audits. -r::[ .. .~..' .: PAGE 134 REGULAR MEETING - MAY 29, 1990 VOLUME 25 MEEHAN stated that he appreciated the city's efforts; however, the lowest proposer was qualified to perform the audit. GIFFORD stated that Ernst & Young had lost several municipal clients in the past year or so. One reason given was that E&Y had come in with a low bid and then had come back to the city for additional monies after getting into the audit. He stated that the city had opted out of its agreement with Price Waterhouse for similar reasons. MEEHAN stated that he felt it was important to contract with a firm that was not necessarily on such good terms with the administration. He stated that the administration's version of what had happened last year differed from the Price Waterhouse account of the audit. HILTON asked if Peat Marwick had guaranteed that a senior auditor would be sent to Seward to head up the audit. GIFFORD stated that Vern Johnson would oversee the audit and he felt confident that he would provide good people. Likewise, the Hospital Finance Director was familiar with the individual who would be heading up the hospital audit. HILTON stated that it was important that the city get good auditors who were willing to come in and get the job done. He stated that it might be wiser to pay a little more up front to avoid lost productivity during a protracted audit. BAGEIREK stated that she was impressed with Peat Marwick's exten- sive municipal experience. SIMUTIS stated that she had every confidence that Gifford and his staff would be the best individuals to select the audit firm. BURGESS asked if the requirement for $1 Million in insurance was necessary. GIFFORD stated that this limit of insurance was the standard required by most cities and would protect the city from mistakes made by the auditors. GIFFORD noted that if the city asked for ac- counting services over and above those spelled out in the RFP, the auditor would request additional fees. SCHAEFERMEYER stated that there was a much greater probability that there would be a request for additional fees if the city contracted with the proposer submitting the lowest bid. NOLL awarding the contract with tional years. asked if the city had any options in contract, such as awarding a one-year options to extend for each of two addi- GIFFORD stated that the proposals were I I I 135 PAGE 135 REGULAR MEETING - MAY 29, 1990 VOLUME 25 based on a three-year contract and this change could result in an amended proposal. He noted that the city had an escape clause written into the agreement. MEEHAN asked if the city would be billed on a flat rate or by the hour. GIFFORD stated that the proposal was an estimate, and the auditor would bill actual hours up to the number of hours listed in the proposal. NOLL asked that the city study the impact to the enterprise funds for non-funding of depreciation. He requested that the auditor be asked to submit a reasonable plan for funding replacement of major facilities when needed. GIFFORD stated that Peat Marwick was capable of doing this for the city, however, if this was not brought up as a part of the audit, the city would probably be asked to pay additional fees. THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS CONSENT. RECESS: The meeting was recessed at 8: 40 p.m. and reconvened at 8:45 p.m. XII. UNFINISHED BUSINESS: None XIII. NEW BUSINESS: A. MEEHAN MOVED TO APPROVE THE CLAIM FOR CLAIM FOR DMlAGES: DAMAGES TOTALLING $142.80 AS FILED BY CARY MARSHALL; THE Cary Marshall Claim MOTION WAS SECONDED BY SIMUTIS. APPROVED SCHAEFERMEYER stated that he had nothing to add to the memo in the packet; he recommended payment of the claim. MEEHAN asked that the claim be summarized. SCHAEFERMEYER noted that Marshall's vehicle had been damaged by a piece of pipe partially buried on city property. He stated that the pipe was not properly flagged at that time; however, the problem had now been remedied. BURGESS stated that he would vote for approval, but a prudent driver should have seen the pipe. THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS CONSENT. B. SIMUTIS MOVED TO INSTRUCT THE ADMINISTRA- TION TO NEGOTIATE A LEASE WITH SEAVIEW PROPERTIES FOR OFFICE SPACE FOR THE NEXT TWO YEARS; THE MOTION WAS SECONDED BY HILTON. C.RALL: Negotiations w/Seaview Properties for office space approved -':'r:' ....1'..,1.: PAGE 136 REGULAR MEETING - MAY 29, 1990 VOLUME 25 NOLL NOTED THAT MEEHAN, DUNHAM AND SIEMINSKI HAD CONFLICTS OF INTEREST AND WOULD BE BARRED FROM DISCUSSING OR VOTING ON THIS MOTION. SCHAEFERMEYER stated that the city had re- quested proposals for the provision of city office space, and seven proposals were received. He stated that the administration recommended a lease with Seaview Proper- ties for a number of reasons including the fact that the building was accessible to the public and met code and adequate space requirements. He stated that the Seaview Plaza proposal would allow the Community Development Director to relocate to that site and free his office in City Hall for use by the Finance Department, alleviating the over-crowding in that department. DALE LINDSEY, 704 First Avenue, representing Seaview Properties, displayed a schematic of the lower level of Seaview Plaza. He noted that Harbor Enterprises' second floor conference room would be offered to the city on a space-available basis at no charge. In addition, he was prepared to supply a reader board showing the location of city offices and a sign outside the building noting that the city was a tenant. PAT O'BRIEN, 209 Ravina, representing N.S.I. Partnership, recommended that Council accept the N.S.I. proposal. He stated that there were two primary reasons for awarding the lease to N. S. I. First, the N. S. I. proposal was the lowest-priced of the seven. He noted that the average electric bill last year at N.S.I. was $685, not the $900+ suggested by the city. He stated that N.S.I. was ready to correct the one code violation present - absence of hand rails on the outside of the building. In addition, the partnership was ready to make city requested improvements. He added that the close proximity of the building and the lack of relocation costs were an advantage to the city. O'Brien noted that N.S.I. had also offered to sell its building to the city at a very attractive price, with zero down and a net monthly cost to the city which was less than any of the proposals before the Council. HILTON asked if the administration had considered purchase of the N.S.I. building when evaluating the proposals. SCHAEFERMEYER stated that the city was looking only at leasing at this time, with a long range plan to house all city employees at City Hall. This plan included construction of a new public safety building at some point, freeing up space in this building, as well as eventually expanding City Hall. This lease was seen as a stop-gap measure to alleviate problems until long range goals could be realized. I I I 137 PAGE 137 VOLUME 25 REGULAR MEETING - MAY 29, 1990 HILTON stated that he had looked over both the Seaview Plaza site and the Ray Building. He noted that he was concerned that the two block distance between City Hall and Seaview Plaza would create problems for the staff and would result in a loss of productivity due to the amount of time which would be devoted to travelling back and forth. HILTON said that he recognized that there were problems with the Ray Building; however, the $210,000 purchase price, plus another $200,000 for renovation and repairs, would give the city a building for $60-70 per square foot. SIMUTIS stated that, in her opinion, price should be the number one consideration, followed closely by proximity of the proposed site to City Hall. She said that there was no doubt in her mind that there would be a loss of productivity and efficiency if the offices were located two blocks from City Hall. SCHAEFERMEYER stated that price was not the sole criterion considered by the city's evaluating team. He noted that the Ray Building had many problems and did not provide the proper environment for people to work or for the public to visit. SIMUTIS asked if this determination had been made keeping in mid the promised changes and alterations to the Ray Building. SCHAEFERMEYER stated that the promised repairs and alterations would help, but the city had been trying to get the owners to make improvements in the building for several years without success. In additions, SCHAEFERMEYER expressed his concern that the owners might not be able to meet the cost of the needed alterations. In response to a question from SIMUTIS, SCHAEFERMEYER stated that those staff members who were scheduled to occupy the leased office space had indicated that being two blocks from City Hall would not be a problem. He stated that large volume copying would be transported to City Hall once each day, and with careful scheduling, visits between the offices could be kept to a minimum. BURGESS asked Diener to comment on O'Brien's assertion that there was only one code violation in the Ray Building. DIENER stated that one major, high-risk problem was the stairway leading to the second floor offices. He noted that upon exiting Chris Gates' office, one must step down approximately two feet. He stated that the door from this office to the stairway must be closed. In addition, the building had numerous electri- cal problems which must be dealt with. He noted that he would much prefer being in the Ray Building if it could 1 :~k ... ,... ..... PAGE 138 REGULAR MEETING - MAY 29, 1990 VOLUME 25 be renovated so that it met the needs of the city and conformed to all codes. BURGESS asked what part of the building had to be made handicap accessible. ARVIDSON stated that the answer to this question involved interpretation of ANSI standards, and this question should be referred to an architect. SCHAEFERMEYER stated that the federal govern- ment had just recently enacted new legislation regarding handicap accessibility, but the new regulations were not yet available. MURPHY noted that she had recently attended a conference where handicap accessibility was a topic of discussion. She stated that in most cases the courts tend to rule in favor of the handicapped person, not the municipality. She further noted that the law was in- tended to protect prospective employees as well as the public. HILTON suggested a work session to review the N.S.I. proposal. SIMUTIS asked for a thorough review of electrical problems and handicap access rules and regulations. SCHAEFERMEYER stated that if the Council wished to consider purchase of abuilding, other proposers should be given an opportunity to bid. In addition, the city should consider adding on to City Hall. However, he noted that money was not available for either of these options. HILTON stated that he did not want to hear that money was the problem when the administration was recommending spending $36,000 per year in lease payments. He stated that this option should be fully explored before committing to any of the proposals. HILTON MOVED TO POSTPONE ACTION ON THE MOTION TO NEGOTIATE A LEASE AGREEMENT UNTIL JUNE 1l, 1990; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITH FOUR "YES" VOTES AND MEEHAN AND SIEMINSKI ABSTAINING. A WORK SESSION WAS SCHEDULED FOR NOON, JUNE 11, 1990, TO EXPLORE ALL POSSIBILITIES FOR PROVIDING CITY OFFICE SPACE INCLUDING LEASE AND/OR PURCHASE OF A BUILDING OR AN ADDITION TO CITY HALL. RECESS: The meeting was recessed at 9:40 p.m. and reconvened at 9:45 p.m. I I I PAGE 139 REGULAR MEETING - MAY 29, 1990 VOLUME 25 C. SCHAEFERMEYER noted the memorandum addressing the need to replace the existing Doctors' Clinic with a new facility. He stated that the Legisla- ture had appropriated $45,000 to assist the city in providing a new facility. The city proposed to construct a 5,000 sq. ft. building with an estimated $85/sq. ft. cost. He noted that as a result of a recent plan provided for the Hospital Board, a new site had been proposed. The administration now sought approval of the new site by the Council so that an RFP for preliminary design could be prepared. The city estimated cost of construction to be approximately $586,000, with cost to be substantially recovered from lease payments made by the doctors. He stated that during the early years, the city might be required to subsidize lease payments. SCHAEFERMEYER stated that the goal was to get the project underway this year. TIM POLLARD, M.D., 432 Second Avenue, stated that the office and medical staff were overcrowded. He stated that he would like to see another two physicians in the community, but more space was needed before that could happen. He said that it was possible that the hospital might be required to subsidize the lease initially. However, if four physicians worked in the clinic, there should be sufficient additional income to cover the full lease payment. BURGESS noted that the Hospital Board had not formally approved this site. POLLARD stated that in a planning session, the Board had approved the site, and this approval would be ratified at its next meeting. BURGESS stated that before anything was approved, the Council and Hospital Board should review the Patapoff report. MEEHAN stated that he was aware of the overcrowding and agreed that the city should move as quickly as possible. He also noted that connecting Wesleyan to the Hospital, as provided in the new site plan, was a very good idea. He did caution the city to make sure the site was a safe one. SCHAEFERMEYER noted that the site location proposed was partially a result of the Patapoff study mentioned by Burgess. However, the city did not have a copy of the report in hand. Revisions were currently being made and the report was still in the custody of the architect. He noted that the proposed clinic site had been recommended by Patapoff. BURGESS stated that the letter from Lori Draper indicated that the Board would not be acting on this recommendation until June 13. SIMUTIS stated that, as 139 SGH: Authoriza- tion to issue RFP for design of new Doctors Clinic - II' .. .. "" PAGE 140 REGULAR MEETING - MAY 29, 1990 VOLUME 25 Council's representative on the Hospital Board, she could assure the Council that the Board would endorse this site. In response to a question from NOLL, POLLARD stated that entrance into the Emergency Room would be tied into the after-hours clinic facility, with details to be worked out by an architect. SCHAEFERMEYER noted that additional parking would be provided where the clinic is currently located. NOLL stated that Senators Kerttula, Zharoff and Szymanski would initiate a study of rural health care needs to present to the Legislature next year and seek funding next session. HILTON noted that construction of a new hospital was not a dead issue. However, the city could no longer wait for funding before taking some action to improve existing facilities. He stated that this was seen as a logical first step in the process. SIMUTIS MOVED TO CONCUR WITH THE CITY ADMIN- ISTRATION'S INTENT TO ADVERTISE FOR AN RFP FOR ARCHITEC- TURAL/DESIGN SERVICES FOR CONSTRUCTION OF A NEW CLINIC; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANI- MOUSLY. Simutis asked that the Council be provided with a copy of Patapoff's report. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that he would be presenting his final recommendations for the various city budgets at the next budget work session. He noted that he hoped to get sufficient direction from Council to know how to present the budget for consideration on June 11. CHRIS GATES stated that he was still serving as the city's representative on the Regional Citizens' Advisory Committee. The Committee was currently soliciting area residents interested in serving on one of its subcommittees, and he asked that those interested submit applications to him. He stated that it was important that Seward remain alert to oil spill issues. In every scenario developed for an oil spill in the area, Seward would be affected. Gates stated that as a result of this, he was asking that Seward be designated as, at least, a regional response center with trained personnel and some equipment. He stated that the reason Alyeska had not yet chosen Seward as a regional response center was that Alyeska planned to "hand-off" responsibility for any oil spill cleanup within 72 hours, which was not enough time for oil to get to Seward. Gates reported that fishing vessel owners and operators could be trained I I I JA:l PAGE 141 REGULAR MEETING - MAY 29, 1990 VOLUME 25 by Alyeska to respond to an oil spill. He stated that this program would be administered in Homer, and he would continue to keep the Council and local boat owners informed. GATES stated that the Glomar Asiatic 8 was on its way to Seward and would be here in July with plans to winter over in Resurrection Bay beginning in December 1990. GATES stated that he was currently working on a series of leases with Jim Pruitt (waste oil, existing lease w/15-foot extension to building, and extension of lease to take in adjacent set of rails.) GATES reported that the state was allocating $200,000 for tourism promotion for the borough. He stated that he would monitor to see that Seward and the Eastern Peninsula was well represented. He also noted that the Council would be meeting in a work session on June 13 to review the Nelbro proposal. SCHAEFERMEYER noted that Utility Engineer Jack Anderson was taking a new position in Anchorage and would be leaving his employ with the city. xv. COUNCIL DISCUSSION: NOLL congratulated all scholarship recipients at the high school graduation. He noted that Grace Scholl was awarded the $20,000 BP scholarship. NOLL thanked Icicle Seafood for its continued support of the Korea Alaska Trade Fair with donation of seafood. NOLL stated that Tony Knowles, candidate for governor, would be in Seward on June 1. In addition, the Permanent Fund Board of Trustees would visit Seward on June 18-19. The Mayor, reading from his letter to City employees, thanked everyone for their hard work and team work in making Seward a better place to live. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None "10 .. ;:/_' PAGE l42 REGULAR MEETING - MAY 29, 1990 VOLUME 25 XVIII. ADJOURNMENT: The meeting was adjourned at 10:45 p.m. ~~ William C. Noll Mayor r. CALL TO ORDER: The June 11, Seward City Council was Mayor William C. Noll. 1990, regular meeting of the called to order at 7:34 p.m. by 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, Mee- han, Sieminski and Simutis Present also: Ci ty Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Harbormaster Singleton, Librarian Nicolas, Parks & Recreation Director Josey, Police Chief Bencardino and City Clerk Murphy PRESENTATIONS: PRESENTATIONS: J.Woodruff given numbered serigraph A. Noll presented to John Woodruff a numbered serigraph by Dot Bardarson entitled "Shores of Seward" in recognition of Woodruff's nine years of service on the Planning Commission and four years as a member of the I I I PAGE 143 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 Trade Board. He thanked Woodruff for his commitment to public service and stated that his presence on the Planning Commission would be missed. B. Noll Director Josey with 1990, as ARCO JESSE presented Parks and Recreation a proclamation designating June 21, OWENS GAMES DAY in Seward. . , IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE MAY 14 AND JUNE 29, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. V. APPROVAL OF REGULAR MEETING AGENDA: Schaefermeyer noted the following changes to the Agenda: 1. A revised version of proposed Resolution No. 90-053 (KATFA Appropriation), changing the funding source from Fund Balance to Sales Tax Revenues, had been distributed to the Council and made available to the public; 2. Ordinance No. 633 (Substitutel, had been provided to the Council and the public; 3. A revised version of proposed Resolution No. 90-058, changing the adopting language of the hospital budget resolution to conform to those resolu- tions adopting other enterprise funds of the city, had been provided for the Council and the public; 4. New Business, Item B, was being deleted from the Agenda and would be presented at the next regular meeting; and financial modeling Agenda. 5. New Business, Item C request for assistance to the University of Alaska for wave feasibility study, was being added to the SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. VI. BOROUGH ASSEMBLY REPORT: This report was deferred until later in the meeting. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None 143 PROCLAMATIONS: ". . 144 RESO/KATFA: Approp. funds P&Z: J.Woodruff's resignation ac- cepted PUBLIC HEARING: FY 1991 Budget CIT.DISCUSSION: Tammy Upton - BCMHP Billing Dispute PAGE 144 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 VIII. APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED UNANIMOUSLY. The following actions were taken: 1. Resolution No. 90-053, appropriating funds for city participation in KAT FA 1990, was approved; and 2. Resignation of John Woodruff from the Planning Commission was accepted, and the Clerk was authorized to advertise the vacancy. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the proposed Fiscal Year 1991 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. B. Notice of public hearing as posted and published as required by law regarding a proposed one- year LEASE AND DOCK USE 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 Tustumena 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: TAMMY UPTON, Manager of Bear Creek Mobile Home and Camper Park, asked the Council to reconsider its decision to deny her request to forgive one-half of the Mobile Home Park's utility account delinquency. Upton explained that her utility account had been adjusted by the Finance Department without her know- ledge on two separate occasions during the winter. The two adjustments had resulted in a reduction.of 20,000 kwh from the Park's account. Later, it was discovered that the original reading of her meter had been correct, and the city had sent a bill to her for the 20,000 kwh's used earlier in the winter. She stated that, although the electricity had been used, the delay in notifying her of the usage had resulted in her inability to "do something" about the problem. In response to a question from Noll, she explained that if she had known in November that the Park had used 10,000 kwh's above the average rate for that month, she could have investigated the problem and could possibly have prevented a similar occurrence later in the winter. When asked what steps she would have I I I PAGE 145 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 taken to cure the problem, she stated that she would have checked to assure that tenants were not using electric heaters, a practice which is forbidden under the terms of their rental agreements. She stated that she would also have had the lines checked at that time. Upton also asserted that City Staking Engineer Jeff Estes had suggested that ash from the volcano may have caused the electric meter to spin faster, resulting in an increased electric bill. Simutis replied that the volcanic ash corrosion issue was not valid since this information had not been contained in previous letters or requests for relief. Meehan suggested that the city deduct any accrued penalties and interest on the past due amount and set up a payment plan which would allow Upton to settle the account over a period of several months. Simutis concurred. Schaefermeyer suggested that the city could devise a 6-month payback period for Upton. He noted that he had the authority to waive the penalties and interest and to approve the payment plan without formal authoriza- tion of the Council. Noll suggested that the city include a note on the utility bills that, during the winter months, the utility bills might be estimated rather than actually read. Dunham suggested that the Finance Department "red flag" accounts which were manually adjusted so that this problem did not occur again in the future. B. RAY CLEMENTS, Executive Director of Parents United, noted that he had requested Council approval of his application for a Monte Carlo permit to conduct games in Seward over the Fourth of July holiday. He stated that his agency provided help for abused children and adults as well as offenders. He said that some of the offenders treated by his agency eventually moved to Seward to obtain vocational training at AVTEC, and he hoped that the Agency's work with these clients had helped to enhance the quality of life for residents of Seward. Clements stated that his Agency intended to provide training for the staff of the Spring Creek Correctional Center where 50% of the inmates were sex offenders. He also claimed to have a long history of working with Mt. Marathon Native Association, adding that he had an agreement with Mt. Marathon to provide training for its members and staff during the coming year. In addition, Clements stated that Parents United was working on a Letter of Understanding with SLAC for cooperation between the two agencies. Dunham stated that she would like to see some documentation that monies raised were being used as 145 CIT.DISCUSSION: Ray Clements - Parents United - f6' ,.'..: ) PAGE 146 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 Clements claimed. She noted that she continued to object to Monte Carlo games but would be willing to vote in favor of the permit if the funds were being used for a worthy local cause. Meehan concurred. Clements stated that all funds raised would be used for clinical services for clients, not for ad- ministration. Simutis suggested that action be postponed until the next meeting when Clements could come back to the Council wi th documentation regarding the way the funds would be spent. In response to a question from Hilton, Clements stated that the agency would be running the games at DJ's Wheelhouse. Meehan asked how much money Parents United had realized as a result of last year's games. Clements replied that they had netted $2,000 in Seward in 1989, but he did not know what had been grossed. Noll stated that he would be more comfortable voting in favor of the permit if representatives from SLAC were present to speak for the cause. VI. BOROUGH ASSEMBLY REPORT: [Taken out of order] Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on the June 5, 1990, Assembly Meeting. RECESS: The meeting was recessed at 8: 58 p.m. and reconvened at 9:12 p.m. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: ORD/B&B: New regulations approved 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 SECTIONS 15.10.225 AND 15.10.240(c) OF THE CITY CODE REGARDING BED AND BREAKFAST USES. Notice of public hearing as posted and pub- lished as required by law was noted, and the public I I I PAGE 147 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 hearing was opened. No one appeared in order to be heard, and the public hearing was closed. Murphy noted that a motion to enact proposed Ordinance No. 633 was on the floor. Arvidson suggested that a new motion to enact proposed Ordinance No. 633 (Substitute) was in order. SIMUTIS MOVED TO ENACT ORDINANCE NO. 633 (SUBSTITUTE); THE MOTION WAS SECONDED BY BURGESS. Martin noted that since the introduction of the proposed ordinance he had discovered a conflict with the UBC regarding the number of rooms which could be utilized under the bed and breakfast designation. He stated that the UBC considered the use of five or more guest bedrooms to fall within the lodging/hotel standards. Therefore, the substitute ordinance limited the maximum number of guest rooms to four. Martin noted two additional changes in the substitute ordinance: 1) inclusion of a definition of a bed and breakfast, and 2) changing the 7-day limit to "short term." Martin also stated that the Planning Commission had reviewed the noted changes and had voiced support for them. In response to a question from Dunham, Martin stated that this ordinance would not require Planning Commission review prior to granting a permit for a bed and breakfast; however, each bed and breakfast would be required to undergo an annual life safety inspection by the Fire Chief. DUNHAM MOVED TO AMEND THE ORDINANCE BY CHANGING THE TABLE ON PAGE 3 TO READ "CP" RATHER THAN "HP" IN THE R1 AND RR DISTRICTS; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITHOUT OBJECTION. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND ORDINANCE NO. 631 (SUBSTITUTE) WAS ENACTED, AS AMENDED, WITHOUT OBJECTION. 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, ADOPTING THE CITY OPERATING BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1990. 147 RESO/BUDGET: FY 1991 Operating Budget-General Fund APPROVED :.4:8 RESO/BUDGET: FY 1991 Harbor Fund Budget APPROVED PAGE 148 REGULAR MEETING - JUNE ll, 1990 VOLUME 25 SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-054; THE MOTION WAS SECONDED BY DUNHAM. HILTON asked if the Council had addressed the administration's suggestion that either the mil levy or the sales tax be increased to fund depreciation. Noll stated that the issue had been discussed, and the general consensus of the Council had been to ask the city's auditors to prepare a plan for funding depreciation for presentation to the Council. MEEHAN stated that, given the increase of revenues and expenditures over the past few years, he could not justify a tax increase at this time. He stated that the Fund Balance was growing, and with continued growth of revenues to the city, depreciation funding should occur without the addition of new taxes. SIEMINSKI disagreed, stating that the city should begin to fund depreciation with the FY 91 budget. HILTON stated that the Fund Balance was ac- tually shrinking. He noted that the city had balanced its budgets over the past few years by failing to fund depreciation. He added that he would rather see a small tax increase at this time rather than face a large increase later. In response to a question from DUNHAM, Schaef- ermeyer stated that the most recent statement prepared by the Municipal Bond Bank indicated that the underwriters would probably not approve any additional bonding for the city. NOLL noted that the city currently owed over $10 Million, with principal payments in the FY 91 budget totalling approximately $500,000. He agreed that the city must adopt a plan to fund capital equipment, streets, water/sewer improvements, electrical improve- ments, hospital improvements and dock repairs and expansion. DUNHAM concurred. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS ADOPTED WITH SIX "YES" VOTES AND SIEMINSKI VOTING "NO." 2. 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, ADOPTING THE HARBOR FUND ENTERPRISE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1990. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-055; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. I I I PAGE 149 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 Noll noted that this budget reflected excess revenues over expenditures which could be put into a depreciation account. 3 . 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, ADOPTING THE ELECTRIC FUND ENTERPRISE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,1990. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-056, THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUS- LY. Meehan noted that this budget contained no recommended electric rate increases. Noll noted that the Electric Fund Budget also reflected excess revenues over expenditures which could go towards funding of deprecia- tion. 4. 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, ADOPTING THE WATER AND SEWER FUND ENTERPRISE BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 1990. HILTON MOVED TO APPROVE RESOLUTION NO. 90-057; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer noted that the administration was recommending a water/sewer rate increase in order to make the proposed budget possible. Noll noted that under the proposed budget, the interest currently charged the W/S Fund on its debt to the General Fund would be forgiven, and the principal would be written off over a period of several years. In response to a question from Noll, Schaefer- meyer noted that the provision for charging the Fund interest on debts to the General Fund (Section 2) would apply only to any new debt. Noll noted that the proposed budget reflected approximately $60,000 in revenues over expenditures. 149 RESO/BUDGET: FY 1991 Electric Fund Budget APPROVED RESO/BUDGET: FY 1991 W/S Fund Budget APPROVED "-0 . .~) " RESO/BUDGET: FY 1991 Hospital Budget APPROVED PAGE 150 REGULAR MEETING - JUNE ll, 1990 VOLUME 25 THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. 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, ADOPTING THE FISCAL YEAR 1991 BUDGET FOR SEWARD GENERAL HOSPITAL AND APPRO- PRIATING $386,772 OF LOCAL SUPPORT. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-058 (SUBSTITUTE); THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer noted that the substitute resol- ution presented to Council amended Section 1 of the ordinance to conform to the resolutions adopting other enterprise funds of the city. In addition, it amended Section 2 to reflect the revised estimate of local support. In response to a question from Sieminski, Schaefermeyer stated that Section 1 approved the overall budget while Section 2 gave the city manager the author- ity to transfer up to $386,772 to the hospital. He added that, since an open line of credit had not been approved this year, any requests for funding above this amount would come to the Council for approval. Sieminski suggested that the hospital budget an accounts receivable reserve. Schaefermeyer stated that the budget before Council projected cash flows which would meet the accounts payable demands of the hospital. Mary Mastacusa, Hospital Controller, stated that the hospital budget contained no fat, and every bit of the local support budgeted would be needed by the hospital. She further stated that, from time to time, the hospital might need additional support from the city to meet cash flow needs should its receivables be slow in coming in. She noted that in those instances, the hospital would come to the Council with its requests for support. Mastacusa also noted that any accumulated cash would be spent on replacing outdated equipment. MEEHAN stated that the FY 1991 budget actually showed a reduction of city subsidy to the hospital. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITH SIX "YES" VOTES AND HILTON ABSTAINING. (Hilton noted that, as an employee of the hospital, he had a substantial financial interest in the adoption of the hospital budget.) I I I PAGE 151 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 6. 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, ADOPTING THE ANNUAL CAPITAL BUDGET PLAN FOR FISCAL YEAR 1991. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-059; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITH SIX "YES" VOTES AND HILTON ABSTAINING. (Hilton noted that, as an employee of the hospital, he had a substantial financial interest in the inclusion of funding for a new hospital in the capital budget.) 7. 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, AMENDING RATES AND CHARGES FOR WATER SERVICE COMMENCING JULY 1, 1990. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-060; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer noted that the new rate structure included a minimum charge for each metered customer, but would not affect rates for single family residences. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITH SIX "YES" VOTES AND MEEHAN ABSTAINING. (Meehan noted that his employer, Icicle Seafoods, was a major consumer of city water.) 8. 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, SETTING RATES AND CHARGES FOR SEWER SERVICES COMMENCING JULY 1, 1990. HILTON MOVED TO APPROVE RESOLUTION NO. 90-061; THE MOTION WAS SECONDED BY DUNHAM. Diener outlined the proposed changes and noted that no change was forecasted for single family residen- ces. 151 RESO/BUDGET: FY 1991 Capital Budget APPROVED RESO/WATER DEPT: Amending Water Rates RESO/SEWER DEPT: Amending Sewer Rates 152 RESO/RE- Ferry Lease RESO/CAMPGROUNDS: Increasing Fees PAGE 152 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS VOTE OF THE COUNCIL. 9. 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, PROVID- ING FOR THE DISPOSAL BY LEASE OF THE "OLD DEPOT" BUILDING AND PREFEREN- TIAL USE OF THE FOURTH AVENUE DOCK BY THE STATE OF ALASKA MARINE HIGH- WAY SYSTEM. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-062; THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer stated identical to the one in place for and he recommended approval. that this lease was the past several years, SIEMINSKI stated that the lease should require that DOT/PF maintain the area and keep it in a reasonable condition. He noted that the sign had been down for weeks. SIMUTIS noted that this was a requirement of the lease, adding that stricter enforcement was needed. Kerry Martin stated that he had written a letter within the last week expressing similar concerns to the Marine Highway System. Since that time, the AMHS employee responsible for its shores ide facilities had visited Seward and had promised that the city would see some changes at the site this summer. DUNHAM suggested that the city remind the AMHS of the historical significance of the building to the community. NOLL asked the Clerk to write a thank you letter to DOT/PF thanking those responsible for putting up the sign and noting the concerns expressed by Dunham. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 10. 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, INCREAS- ING THE CAMPGROUND FEES FOR RECREA- TIONAL CAMPING VEHICLES. HILTON MOVED TO APPROVE RESOLUTION NO. 90-063; THE MOTION WAS SECONDED BY BURGESS. I I I PAGE 153 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 Schaefermeyer stated that a survey of other camper fees across the state showed that a $6.00 per night fee was common. He stated that the increase to $6.00 would affect RV's only, with the additional $1.00 going to offset the cost of sewage treatment of the waste discharged by recreational vehicles into the city's sewer system. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. RECESS: The meeting was recessed at 10:40 p.m. and reconvened at 10:52 p.m. XII. UNFINISHED BUSINESS: A. Lease of citv office space. Murphy noted that there was currently a motion on the floor to autho- rize the administration to negotiate a lease with Seaview Properties. She further noted her June 11 memorandum which outlined the steps required to accomplish what appeared to be the Council's desires following the work session conducted earlier in the day. Schaefermeyer noted that the administration had prepared a memorandum for the Council for today's work session which gave a history of the city office space lease RFP. The memorandum identified three options for the Council to consider. Option A provided that the city would remain in the Ray Building for an 18-month period during which the owners would continue to make improve- ments. Option B would allow the administration to proceed with negotiations with Seaview Plaza. Option C was a bit more complex and provided that the city would remain at the Ray Building for a nine month period during which time NSI would obtain an architectural/engineering report within 60 days which would specify code compliance renovations and an overview of the heating and electrical systems. This option would then allow NSI 60 days to consider whether or not it wished to proceed with the renovations specified in the A/E report. Upon receipt of a written guarantee from NSI to make the required renovations, the city would enter into negotiations for a long term lease (2 years or longer). NOLL noted that Dunham, Meehan and Sieminski would abstain from all discussion and voting since they had all three submitted bids for lease of office space. THE QUESTION WAS CALLED ON THE MOTION TO NEGOTIATE WITH SEAVIEW PROPERTIES, AND THE MOTION FAILED 153 C.RALL: Request to continue nego- tiations w/Seaview Plaza DENIED ~ ~[ '"' 4 ~;: .: PAGE 154 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 WITH FOUR "NO" VOTES AND DUNHAM, MEEHAN AND SIEMINSKI ABSTAINING. SIMUTIS MOVED TO ASK THE ADMINISTRATION TO PROCEED WITH RECOMMENDATION A; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that one of the NSI partners, John Woodruff, had indicated that he had contacted an architectural and engineering firm to proceed with the A/E report. HILTON stated that the appeal of Option C was the presence of specific time lines set for the process. Likewise, one problem with Option A was the lack of clear language indicating time lines for improvements. He added that a clear understanding from the outset of what the city wanted accomplished, and when, was needed. Schaefermeyer suggested that the city come back to the Council at the next meeting with a suggested agreement between the city and NSI regarding implementa- tion of Option A, including time lines and a delineation of improvements, as well as provisions for an A/E in- spection report. HILTON stated that this would be acceptable so long as the city did not stray too far from the original RFP. He stated that he would like to be on the record regarding his rejection of the Seaview proposal. First, the Seaview option was more expensive, and second, the distance from City Hall would result in a decrease in productivity. He added that the city should continue to investigate the possibility of constructing its own office space or acquiring additional office space. Schaefermeyer stated this could be done during the interim period. Burgess stated that he was more inclined to go with Option C, but if A and C were blended, he would consider voting for it. NOLL requested that the administration seek information regarding what the city's options were for providing handicap access somewhere in a central loca- tion. Schaefermeyer stated that he would investigate this and report back to the Council on June 25. SIMUTIS MOVED TO POSTPONE ACTION UNTIL JUNE 25; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITH FOUR "YES" VOTES AND DUNHAM, MEEHAN AND SIEMINSKI ABSTAINING. XIII. NEW BUSINESS: I I I PAGE 155 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 Permit. A. Parents United request for Monte Carlo DUNHAM MOVED TO GIVE TENTATIVE APPROVAL FOR THE MONTE CARLO PERMIT FOR PARENTS UNITED CONTINGENT UPON RECEIPT OF A LETTER FROM DEPT. OF HEALTH AND SOCIAL SERVICES RECOGNIZING THE AGENCY'S SERVICES AND QUALIFI- CATIONS, A LETTER FROM DEPARTMENT OF CORRECTIONS SUB- STANTIATING CLEMENTS' CLAIMS, A LETTER FROM SLAC GIVING ITS EXPERIENCE WITH PARENTS UNITED, AND A FINANCIAL REPORT SHOWING GROSS AND NET PROCEEDS FROM THE MONTE CARLO GAMES CONDUCTED IN SEWARD IN 1989; THE MOTION WAS SECONDED BY SIMUTIS. HILTON noted that he had objected two years ago to this type of operation coming to Seward on July 4th, a very busy time for the law enforcement people in the community, primarily because the activity was to be conducted in a local bar. He stated that he did not think the city should do anything which would encourage people to do any more drinking than they were already inclined to do over that period of time. He stated that he would like to be on record opposing this request. DUNHAM concurred that she would feel more comfortable if the activities were being held in some other location. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FIVE "YES" VOTES AND HILTON AND SIEMINSKI VOTING "NO." B. National Park Service request to purchase city property located in Ft. Raymond Subdivision. DELETED C. Universitv request for city financial participation in wave modeling study. Martin presented to the Council the proposed plan for Small Boat Harbor expansion and provision of dock space for the University, the Ferry and visiting cruise ships. Schaefermeyer noted that he had received a request from the University for the city's financial participation in the modeling of the semi-permeable wave barrier which was a part of the proposed new dock plan. He stated that James Strandberg, the University's Project Manager for Facilities Planning and Construction, hoped to go to the Board of Regents with a request to include the dock construction in the University's 1992 capital budget. Schaefermeyer stated that, unless there was some objection from the Council, he intended to provide the ... 155 PERMITS FOR GANES OF CHANCE & SKILL: Monte Carlo Permit tentatively approved for Parents United SBH EXPANSION: Request for city participation in wave modeling study approved .. .- (. I . . .t.il .j PAGE 156 REGULAR MEETING - JUNE 11, 1990 VOLUME 25 $3,300 requested from the Harbor Expansion Fund. No one objected. XIV. CITY MANAGER REPORTS: Schaefermeyer thanked the Council, Staff and Public for their participation in the budget process. He also noted that the dedication of the Seward Scenic Byway was scheduled to begin at 10:30 a.m. on Wednesday at IMS. He encouraged everyone to attend. Schaefermeyer reminded Council that a work session had been scheduled for Wednesday, June 13, beginning at 7: 00 p.m., to discuss the Nelbro lease proposal. He also noted that the Hospital Board meeting had been rescheduled to June 21 in Council Chambers. Arvidson noted that the new Harbor Tariff was 80% complete. He also noted that discussions continued with the borough attorney and finance people concerning sales tax regulations. Arvidson stated that he was working on a proposed easement agreement for the fiber- optics cable, and he anticipated bringing it to Council on June 25. xv. COUNCIL DISCUSSION: NOLL noted that June 14 was Flag Day. He also thanked John Gage, Chris Gardner and others for their work searching for the man overboard in the Small Boat Harbor. Noll reminded everyone that the Permanent Fund Board would be meeting in Seward on June 18 and 19, and he invited the public to attend a reception for the Board on June 18, beginning at 5:30 p.m., at the Frontier Restaurant. He also noted that Lt. Governor candidate Willie Hensley would be in Seward on July 4th. XVI. CITIZENS' DISCUSSION: None XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None ADJOURNMENT: adjourned at 11:42 p.m. ~~ William C. Noll Mayor I I I 157 PAGE 157 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I. CALL TO ORDER: The June 25, 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: Councilmember Dunham led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Dunham, Hilton, Meehan, Siemin- ski and Simutis (Burgess arrived at 7:50 p.m.) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assistant City Manager Yanez, Engineering and utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Parks & Recreation Director Josey, Finance Director Gifford, HarbormasterSinqleton,Librari- an Nicolas, Police Chief Bencardino and City Clerk Murphy IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE June 11, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY HILTON AND CARRIED UNANIMOUSLY. v. APPROVAL OF REGULAR MEETING AGENDA: DUNHAM MOVED TO MEET IN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE MEETING TO DISCUSS LITIGATION AND A PERSONNEL MANNER; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITHOUT OBJECTION. HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer requested the addition of Resolutions 90-076 and 90-077 to the Consent Calendar. Sieminski asked that 90-077 be placed on the regular meeting agenda. Hilton asked that 90-076 be placed on the regular meeting agenda. Dunham asked that Resolution 90-074 be deleted from this agenda and rescheduled for July 9, 1990. ., ;" ,r"\ .,(.;.,..f'> RESO/PURCHASING: Police Vehicle RESO/CON- /STREETS: Phase I, Street Imp.ovements SGH: Auth. expendi- ture of excess Rev.Sharing Funds RESO/SHIPLIFT: Funding Shiplift Repair RESO/SBH EXPANSION: Accepting concep- tual plan of PN&D CON- Prison Change Orders PAGE 158 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai peninsula Borough Assembly Representative Sewall 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 DUNHAM AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 90-065, authorizing the purchase of a police vehicle, was approved; B. Resolution No. 90-066, awarding a con- tract for Phase I, Street Improvements, was improved; C. Resolution No. 90-068, expenditure of excess Revenue Sharing General Hospital, was approved; authorizing the Funds by Seward D. Resolution No. 90-072, appropriating funds from the SMIC Special Revenue Fund to the Harbor Fund to reimburse the Harbor Fund for shiplift repair, was approved; E. Resolution No. 90-074 was deleted; F. Resolution No. 90-075, accepting the conceptual development plan for the Seward Waterfront facilities as prepared by peratrovich, Nottingham and Drage, was approved; G. H2W Construction Change Orders for Spring Creek Correctional Center Prison Industries Project were noted for information as follows: 1. ~ - Providing and installing security grilles for a 34" paint booth, a 24" paint booth, an 18" paint booth, 2 each 16" explosion vents, and one 12" x 24" combustion air vent (+$8,733); 2. taB - Providing and installing four 24" x 24" ceiling fire-rated access doors with knurled knobs at Room 1-300 APS, south end of Corridor 1-081 APS, Room 103 PIB, and Room 108 PIB (+$3,081); 159 PAGE 159 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I 3. 18C - Providing and installing two 3/4" condui ts , one from the Crafts Shop and one from the Industries Building, both to run to Room 1-300 APS (+$6,164); 4. ~ - Providing all labor and materials to fabricate new fittings to drop ductwork below ABU II to allow access to the unit (+$1,916); 5. !2A - Providing all labor and materials to locate the new disconnect switch shown on Sheet El.2, Detail 2, adjacent to existing Panel A and move the relay cabinet where the new disconnect switch is shown (+$786); 6. ~ - Providing all labor and materials to install a flexible joint cover where the new PIB roof connects to the existing APS roof (+$1,956); 7. 19C - Providing all labor and materials to install an additional 145 l.f. of hat channel at CSA roof in order to increase the roof's snow carrying capacity (+$440); I 8. tiQ - Providing all labor and materials to move the CSA dust collector silencer up to 12'0", and to modify dust collector to conform with CH2M Bill sketch dated 01/23/90 (+$1,953); 9. 19E - Providing all labor and materials to install backer plates at the 18 gauge roof flashing (+$1,566); and 10. Providing all labor and materials to install a drip pan under the day tank located on the second floor mechanical room of the PIB, replacing the previously installed UMC 65-80 Grundfos pumps with two UPC 65-160 Grundfos pumps in the APS mechanical room (+$3,167). IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and PUBLIC HEARING: published as required by law regarding a proposed PACTEL Easement EASEMENT AGREEMENT between the city and Pacific Telecom Cable, Inc., for the construction and operation of a fiber-optic communications cable from Pacific City, Oregon, to Seward, Alaska, and Tokyo, Japan, to traverse through city tidelands, was noted, and the public hearing was opened. I BOB KRAMER, Engineer for Pacific Telecom Cable, showed a slide presentation to the Council. He explained 160 ORD/PERSONNEL: Action postponed PAGE 160 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 that the project started three or four years ago as a means of linking Japan and the U.s. through fiber-optic cable. He stated that the cable could handle more than 85,000 simultaneous telephone calls and would link all Pacific Rim countries. Kramer noted that the project was owned by three companies -Pacific Telecom, aU. S. company; I.D.C., a Japanese company; and Cable and Wireless, headquartered in Great Britain. In response to a question from Hilton, Kramer stated that the cable was capable of transmitting video as well as audio signals. Meehan asked for the cost of the total program. Kramer responded that total cost of the project was approximately $300-400 Million. KEN LANG, Alascom Administrator, stated that the city would be seeing benefit of better long distance service to Anchorage and beyond before year's end. He added that this new equipment would affect all toll calls out of Seward. In response to a question from Hilton, Lang stated that television stations from Anchorage could bring their signals into Seward over the cable line. No one else appeared in order to be heard, and the public hearing was closed. X. PRESENTATIONS WITH PRIOR NOTICE: A. JOHN SKARSVOG was not present 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 SECTION 2.05.030(A) OF THE CITY CODE RELATIVE TO THE ACCESS TO CITY EM- PLOYEE PERSONNEL RECORDS. Murphy noted that there was a motion to enact the ordinance on the floor. Schaefermeyer recommended that the ordinance be postponed until July 23, giving the Governor time to sign the bill before him. PAGE 161 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I MEEHAN MOVED TO POSTPONE ACTION ON ORDINANCE NO. 631 UNTIL JULY 23, 1990; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. 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, APPROV- ING AN EASEMENT AGREEMENT WITH PACI- FIC TELECOM CABLE, INC., FOR CON- STRUCTION AND OPERATION OF A FIBER- OPTIC CABLE THROUGH SEWARD. HILTON MOVED TO APPROVE RESOLUTION NO. 90- 064; THE MOTION WAS SECONDED BY SIMUTIS. I BURGESS stated that he was a subcontractor on a portion of the project and asked if he should abstain. Noll stated that the essence of the deal was not whether the lease was to happen, but the price tag attached. Therefore, he ruled that Burgess was free to join in discussion and voting on the resolution. Council did not object. SIEMINSKI stated that he leased property to Alascom, but did not feel that he had a conflict. He noted that this was a short term lease which was initiated about two months ago. Arvidson stated that it was not an obvious disqualifying interest and would be up to the Chair to rule. Noll ruled that Sieminski had no direct substantial conflict with regards to this issue. ARVIDSON noted that Council had received a memo outlining what had happened up to Friday, Noon. He stated that the discussion now centered around location of the cable in Resurrection Bay and who should take the risk should the cable need to be moved due to future development within the city. The current agreement called for the city to bear this risk, and the lease rate to Alascom was set at approximately $300,000. It now appeared that Alascom might want to assume the risk in exchange for a lower lease rate. He stated that he was recommending a couple of amendments to the resolu- tion. I DUNHAM asked why it had taken the company so long to approach the city about an easement. Arvidson stated that he had first drafted an agreement last 161 RESO/EASEMENTS: Approving PacTel Easement Agrmt 16? PAGE 162 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 summer, taking the approach that any cable relocation costs would be borne by Alascom. When the project came back to the city for additional discussions in May, Alascom's approach was an expressed desire to purchase the property. As the parties drew closer to a final agreement, Alascom began to understand the city's con- cerns, with the risk of relocation being a major risk that the city did not wish to assume lightly. Arvidson added that it now appeared that the risk would revert back to Alascom, which was where the city had always wanted it to be. KRAMER stated that the installation date was July 22nd, and cable was due in Seward on July 21st. He stated that they wanted to be prepared prior to that time. JOHN RUBINI, attorney for Pacific Telecom Cable, Inc., stated that the price tag the city had placed on the possible movement of the cable had caught Pacific Telecom's eye, and Pacific Telecom had come to appreciate this issue. He added that he was confident that in the next 30 days they could come back to the Council with a restructured easement agreement under which Pacific Telecom would bear the risk of having to move the cable in the unlikely event that subsequent development made this necessary. ARVIDSON requested the following changes to the resolution and agreement: 1. Add to the resolution "WHEREAS, THE CITY AND PACIFIC TELECOM CABLE, INC., INTEND TO NEGOTIATE A RESTRUCTURING OF THE EASEMENT IN ORDER TO SHIFT THE COST OF DEVELOPMENT RISK FROM THE CITY TO PACIFIC TELECOM, INC. ; " 2. Amend the next to the last "Whereas" clause to read, "WHEREAS, AN APPRAISAL OF AN EASEMENT IN PERPETUITY TO THE PROPERTY WOULD NOT BE IN THE PUBLIC INTEREST BECAUSE OF THE IMMEDIATE NEED FOR ACCESS AND USE OF THE EASEMENT RIGHTS BEING GRANTED;" 3. Add a new "Section 5" to the resolution to read, "THE CITY MANAGER IS AUTHORIZED TO CONTINUE NEGOTIATIONS TO RESTRUCTURE THE EASEMENT AND TO PRESENT A REVISED AGREEMENT AS SOON AS POSSIBLE." 4. Amend the payment section of the agreement by deleting all of Sections 1.8 - 1.8.3 and substitute in its stead new Sections 1.8 and 1.8.1 which set a flat dollar figure of $300,000 as the price of the easement. PAGE 163 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I In response to a question from Simutis, Arvidson stated that the city would probably come back to the Council with an amended agreement reducing the payment amount in exchange for placing the risk of relocation of the cable on Pacific Telecom Cable, Inc. He added that any future amendment would require public notice, public hearing and action by the Council. Arvidson also explained that, should the agreement remain unchanged, the $300,000 would be due and payable on December 31, 1990. NOTE: HILTON LEFT AT 8:40 P.M. AND RETURNED AT 8:43 P.M. I Meehan stated that he felt $300,000 was a fair price for the easement. He stated that the cost of any benefit received by the community would be borne by the telephone and video consumers. He added that he hoped Pacific Telecom would assume the risk of relocation of the cable since this company was better prepared than the city to take on such a project. Dunham concurred with Meehan. She stated that this project would not result in the creation of jobs or a substantial real property investment. She added that the possibility of needing to relocate the cable was not as obscure as Pacific Telecom seemed to think. SIMUTIS MOVED TO AMEND RESOLUTION NO. 90-064 TO INCLUDE THE ADDITIONAL "WHEREAS" CLAUSE AND AMEND- MENTS AND THE ADDITION OF NEW SECTION 5 AS NOTED BY THE ATTORNEY, AND TO INCLUDE THE AMENDED SECTION REGARDING PAYMENT, SECTION 1.8, IN THE AGREEMENT; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITHOUT OBJECTION. THE QUESTION WAS CALLED ON THE MAIN MOTION, AND RESOLUTION NO. 90-064 WAS APPROVED AS AMENDED WITHOUT OBJECTION. RECESS: The meeting was recess at 8:45 p.m. and reconvened at 8:57 p.m. 2. 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 FOR A NEW WATER WELL IN THE FORT RAYMOND WELL FIELD. I MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 067; THE MOTION WAS SECONDED BY SIMUTIS. 163 RESO/WATER DEPT.: Appropriating funds for new Water Well 164 PAGE 164 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 SCHAEFERMEYER stated that the FY 90 budget contained $50,000 for a replacement water well which could not be used within FY 90. Preliminary engineer- ing had been obtained to provide a new well at a cost of $90,000. Therefore, the administration was requesting an amendment to the FY 1991 budget to fund the replace- ment well in the FY 1991 budget to allow the city to accomplish this project this summer. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. RESO/BUDGET: Amending 3. Copies having been made available to FY 1990 budget 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 FOR GENERAL FUND REVENUE AND EXPENSE INCREASES FOR FISCAL YEAR 1990. HILTON MOVED TO APPROVE RESOLUTION NO. 90- ~; THE MOTION WAS SECONDED BY SIMUTIS. SCHAEFERMEYER noted that the city was request- ing amendments to two areas in the FY 1990 general fund budget. The first was a reallocation of copier revenues to bring that department budget in line with the way the city was currently handling copier revenues and expen- ses. The second amendment was to provide additional funds to the FY 1990 Council legal budget. $86,000 was budgeted; he estimated that the budget would be exceeded by $107,337, and he requested an increase in that amount. He noted that the budget revenues would be amended to make these adjustments. He stated that, even with these adjustments, the Fund Balance would see an increase over July 1989. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. RESO/BUDGET: Writing off W/S deficit 4 . 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, AUTHO- RIZ ING THE TRANSFER OF FUNDS FOR GENERAL FUND PAYMENT OF THE WATER/ SEWER CASH DEFICIT. PAGE 165 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90- 070; THE MOTION WAS SECONDED BY HILTON. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJEC- TION. 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, APPRO- PRIATING FUNDS TO COVER THE CITY PORTION OF COSTS OF THE 1986 FLOOD. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90- 071; THE MOTION WAS SECONDED BY DUNHAM; THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJEC- TION. 6. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING THE TRANSFER OF FUNDS RE- QUISITE TO THE CLOSING OF VARIOUS SPECIAL PROJECT FUNDS. BURGESS MOVED TO APPROVE RESOLUTION NO. 90- 073; THE MOTION WAS SECONDED BY SIMUTIS. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 7. 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, ADJUST- ING THE FISCAL YEAR 1991 POLICE DEPARTMENT BUDGET TO ALLOW FOR THE UPGRADE FOR AN ADDITIONAL PATROL OFFICER POSITION. HILTON MOVED TO APPROVE RESOLUTION NO. 90- 077; THE MOTION WAS SECONDED BY SIMUTIS. I Schaefermeyer noted that police department activity and statistics were up and there was a need for an additional patrolman, particularly during the evening shift. He stated that the utility officer was often put in the position of serving as a patrol officer and had 165 RESO/FLOOD/BUDGET: Approp. funds to cover city costs incurred during the 1986 flood RESO/BUDGET: Closing certain capital budgets RESO/BUDGET: Approp. funds for additional police officer position ~~GC RESO/CON- /POLICE DEPT: Jail con- - tract approved PAGE 166 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 received his certification from the Alaska Police Stan- dards Council. He recommended approval of the upgrade of this position and salary. Schaefermeyer noted that the city had budgeted for a 30 hour per week animal control officer, and the utility officer position would not be filled after July 1. He further noted that the cost of the upgrade would be approximately $10,000, adding that additional revenues had been identified to support the increased cost. In response to a question from Sieminski, Schaefermeyer stated that it was an oversight on the administration's part not to bring this to Council when the budget was approved. Sieminski stated that there was no need to add to the budget for this position since the city had budgeted for a patrol car which it would not need to purchase. Bageirek noted that the refer- enced patrol car was a capital budget item; therefore, an amendment to the General Fund was needed to provide for the increased cost of this position. THE QUESTION WAS CALLED, AND THE MOTION CAR- RIED BY UNANIMOUS VOTE OF THE COUNCIL 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, AUTHOR- IZING A CONTRACT WITH THE STATE OF ALASKA FOR OPERATION OF THE JAIL. HILTON MOVED TO APPROVE RESOLUTION NO. 90- 076; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer stated that the city had operat- ed the city jail under contract with the state for a number of years; however there was no record that it had ever been brought to the Council for approval. This year's contract would reimburse the city approximately $260,000 for operation of the jail, and this represented an increase of about $20,000 over last year. Under this contract, the state also would assume responsibility for losses within the jail of over $300,000. HILTON asked if there were any changes in the medical aspects of this contract. Schaefermeyer stated that the contract did not provide for the cost of deal- ing with protective custody issues (Title 47). The Dept. of Public Safety was not funded for dealing with any matters other than the actual arrests made under the state criminal code. PAGE 167 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I SIEMINSKI asked if the city would still be responsible if the jail were in a state public safety building. Arvidson stated that he did not have an answer to that question. He also noted that this contract did not preclude a claim against the state for medical costs. THE QUESTION WAS CALLED, AND RESOLUTION NO. 90- 076 WAS APPROVED BY UNANIMOUS VOTE. XII. UNFINISHED BUSINESS: A. Parents united apclication for a Monte Carlo Permit. MEEHAN MOVED TO APPROVE THE APPLICATION FOR PERMIT AS FILED BY PARENTS UNITED; THE MOTION WAS SECON- DED BY DUNHAM. THE QUESTION WAS CALLED AND THE MOTION FAILED WITH ALL PRESENT VOTING "NO". B. National Park Service Request to curchase certain citv cropertv located within the Fort Ravmond Subdivision. I HILTON MOVED TO RECOMMEND THAT THE CITY PROCE- ED WITH NEGOTIATIONS WITH THE NATIONAL PARK SERVICE FOR THE DISPOSAL BY LEASE OR PURCHASE OF CITY PROPERTY LOCATED AT FT. RAYMOND SUBDIVISION; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer recommended approval of the motion. Simutis stated that her only concern had to do with highway screening. She asked if the city could mandate or require proper aesthetic screening. Schaefe- rmeyer stated that this could be done through a deed restriction. HILTON stated that he was concerned about adding anything to the area which would increase traffic congestion. He noted that when the school opened this Fall, this would be a heavily travelled area. DUNHAM stated that she preferred this to having a business locate in this area. SIEMINSKI stated that he was opposed to selling city property. THE QUESTION WAS CALLED, AND THE MOTION CAR- RIED WITH SIX YES VOTES AND SIEMINSKI VOTING NO. RECESS: The meeting was recessed at 9:54 p.m. and reconvened at 10:05 p.m. I 167 GAMES OF CHANCE & SKILL: Parents United Monte Carlo Permit DENIED FT. RAYMOND SUB: Aurhorization to negotiate w/Park Service re purchast of certain city property 168 PAGE 168 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 C. Nelbro ProDosal. GATES noted the memorandum before Council outlining the issues brought up during the Nelbro work session. He stated that the administration was request- ing Council approval for the city to go forward with its efforts to come to an agreement with Nelbro which would come back to the Council later for public hearing and a vote of the Council. He noted that the question was whether the Council wished the city to negotiate or not. BURGESS asked where the city would stand, if it proceeded, with respect to Inlet Salmon. Arvidson stated that there was no obligation on the Council to be consistent over a number of years regarding the develop- ment of city property. He stated that the Council had a lot of flexibility in this area. SIMUTIS stated that it appeared that the city was looking for reaffirmation of what was discussed at the work session. She stated that she wanted to make it clear that the city was under no obligation to enter into any agreement with Nelbro at the end of the negotiating process. Schaefermeyer stated that the city was seeking authority to actually negotiate a long term lease of property with Nelbro. He said that, ultimately, approval of the lease would be contingent on public hearing and approval by the Council. DUNHAM stated that she was in favor of the lease; however, she hoped that the city's interests would be protected during the negotiating process. GATES stated that city lease procedures re- quired the administration to come before Council for approval to negotiate prior to beginning those talks. BURGESS stated that he did not feel this was the highest and best use of the land. He noted that ship repair, docking and fish processing, in that order, were his priorities for use of SMIC. HILTON concurred. He asked Gates why the city felt it was not such a good idea to have fish processing on that piece of property when two years ago, during the Inlet Fisheries negotiations, this was not thought to be such a good idea. Gates responded that the fact that the city was now considering the extension of the dock to provide some deep draft moorage for the SMIC would relieve the requirement for moorage along the ease rip rap face. Gates added that the concept of accommodating fish processors had always been anticipated in the permitting for SMIC, and this was a natural type of use for the property. PAGE 169 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I HILTON stated that, in his opinion, the area to the north of this property would be a better location for fish processing than in the middle of the area the city had set aside and tried to develop for ship repair. Gates stated that the reason Inlet could not develop the area to which Hilton referred was because it did not afford the protection needed by smaller vessels. DUNHAM stated that if the Council did not wish to bring in additional fish processors, Gates should be so informed. She stated that by not giving him that direction, the city was encouraging him to continue to solicit fish processors. I BURGESS concurred with Dunham. He added that if the city's primary interest was in ship repair, it was apparent that there was not enough dock space available at SMIC. He noted that if the docks were tied up with fish processors, the city might be hurting the future development of ship repair facilities at SMIC. Gates stated that if ship repair was to be the primary focus, the city must keep in mind the in-water repair needs of the industry, and if there was no intent to provide additional dockage, it might be in the city's interest not to approve a Nelbro lease. However, if the city planned to continue development and allow more moorage at SMIC, there might be room for both industries. He added that this was the direction he was headed, and in his opinion, there would eventually be plenty of room for both additional fish processing and adequate in-water ship repair. BURGESS noted that traffic and parking were already a problem in this area, and he feared that the addition of another fish processor would compound the problem. Noll agreed and stated that he hoped the administration was contemplating ways to address the traffic problems as part of this overall effort. SIMUTIS MOVED TO AUTHORIZE THE CITY TO NEGO- TIATE WITH NELBRO, INLET AND JORE; THE MOTION WAS SECONDED BY SIEMINSKI. I HILTON stated that he was opposed to any additional fish processors locating at SMIC until such time as additional docking space was in place. DUNHAM repeated her support for the motion stating that the city had led Nelbro to believe that there was a possibility that the city would go forward with a lease and it was not fair at this point to renege. 169 SMIC: Authorization to negotiate w/ Nelbro, Inlet & Jore 170 CLAIM FOR DAMAGES: Yellow Cab Claim referred to Ins. Carrier PAGE 170 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 She stated that the city should not be trying to deter- mine if there was a need for another processor in town just as it did not delve into the economics of locating another grocery store here. SIEMINSKI stated that the city should go forward with this project. He stated that much larger projects were being developed at Dutch Harbor, adding that if the fishing industry was willing to invest in development in Seward, the city should welcome it. BURGESS stated that he would vote to negotiate, but he wanted Nelbro to be aware that the city was under no obligation to approve a lease. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FIVE YES VOTES, MEEHAN ABSTAINING AND HILTON VOTING NO. D. Citv office s9ace lease. Murphy noted that there was a motion on the floor to approve Option A, as outlined by Schaefermeyer at the June 11, 1990, meeting. Schaefermeyer asked for postponement until July 23, 1990. SIMUTIS MOVED TO POSTPONE ACTION UNTIL JULY 23, 1990; THE MOTION WAS SECONDED BY HILTON. THE QUES- TION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJEC- TION. (NOLL noted that abstentions of Dunham, Meehan and Sieminski. ) XIII . NEW BUSINESS: A. Claim for damaqes as filed bv Yellow Cab. HILTON MOVED THAT THE CITY REFER THE CLAIM TO ITS INSURANCE CARRIER; THE MOTION WAS SECONDED BY DUN- HAM. Schaefermeyer stated that the claim had been tendered to the city's adjusters. (There was no repre- sentative of the claimant in the audience.) In response to a question from BURGESS, Schaefermeyer stated that this course of action would provide the city's insurance adjuster with an opportunity to attempt to resolve the claim with the claimant. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. 171 PAGE 171 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 I XIV. CITY MANAGER REPORTS: Schaefermeyer noted that the city was recipient of a reward from the American Society of Safety Engineers for the development of a city-wide safety program. He recognized Diener and his staff for their efforts in the development of this plan. Schaefermeyer extended his personal thank you to the P&R staff and community volunteers for making the Seward Jesse Owens Arco games a success. He stated that a number of Seward youth would be travelling as guests of Arco to Nikiski High School on Saturday. xv. COUNCIL DISCUSSION: I BURGESS thanked the city for installing a gate at the stalls at the shiplift. He also stated that Greyline tours were taking tours by the shiplift and asked if this was appropriate. Schaefermeyer stated that the tour bus had probably taken a wrong turn and ended up at the ship lift accidentally. DUNHAM thanked Ainsworth and his department for their work in putting up the new signs. She also thanked Bencardino for responding immediately to van- dalism in the city cemetery last week. Dunham asked the city to clean up the cable at Fourth of July. HILTON stated that he had filled in for the Mayor at the Permanent Fund meeting and dinner. He thanked Murphy and Yanez for making the Board's visit an enjoyable one. NOLL stated that his trip to Korea was fruit- ful and promised a written report later during the week. He noted that he and In Jae Kim had represented the city and had met with the Korean tour operators as well as with the President and Chairman of Samik. He noted that he had invited them to visit in July, and it looked like they would come. Noll stated that he had presented the President with a Seward serigraph and a bottle of Alaska Vodka. Noll then presented the city with a guitar which was a gift to the city from the President of Samik. NOLL noted that two events had resulted in deaths in the Boat Harbor in the last month, and he hoped the staff would keep safety in mind. XVI. CITIZENS' DISCUSSION: I CHRIS GATES, Johnston Road, Seward, stated that he was the city's representative on the Regional Citi- 172 \ 0-~U;-~' ~~.~ '~__ c.''.' (IY :,:: W. . .'/,"'; ,.'" "ot~._.~. "/ <.' ,r<;-,. V ~'. ..,.~.,. - PAGE 172 REGULAR MEETING - JUNE 25, 1990 VOLUME 25 zens' Advisory Committee, and he had an alert for those in town owning vessels of seiner class or larger. He stated that Seward would be included in the vessel response team that Alyeska was putting together to respond to any future oil spill. He added that he would keep the local boating community informed. XVII . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVI II . ADJOURNMENT: The meeting was after a short recess, the tive Session to discuss matter. ".. '..," i:..' ~ . ,-,-' . .8 (City -'or......-. /1 S -. ';" ,," '.. ::"" J"#""~"'1 '*....;.V"/' '-:0. ).. -.,.. .". f..' A -'0.. r .",,' .,..~^' '~~"'f OF ~:~~. ?:>-7nrrrrrrn" . Seal) PAGB 172 adjourned at 10:46 Council reconvened litigation and a p.m., and in Execu- personnel ~~ Mayor I. REGULAR MEETING - JULY 9, 1990 VOLUME 25 ('&u. TO ORDBR: The July 9, 1990, regular meeting of the Seward City Council was called to order at 7:36 p.m. by Mayor William C. Noll. II. OPENING CEREMONY: City Clerk Murphy led the pledge of allegiance to the flag. III. ROLL C&U.: Present were: Mayor Noll and Councilmembers Dunnam, Meehan, Sieminski and Simuti. (Burgess arrived at 7:40 p.m., and Bilton arrived at 8:05 p.m.) PAGE 173 REGULAR MEETING - JULY 9, 1990 VOLUME 25 I Present also : City Manager Schaefermeyer, City Attorney Arvidson, Engi- neering and Utilities Manager Diener, Deputy Fire Chief Squires, Finance Director Gif- ford, Parks and Recreation Di- rector Josey, Librarian Nicol- ~, Communi ty Development Di- rector Martin and Ci ty Clerk Murphy PRESENTATIONS: A. Noll presented Parks and Recreation PRESENTATIONS: Department awards to the following: Most Improved Home - Richard and Shari Adelmann Most Improved Apartment Complex - USCG Lt. Shelton Most Improved Business - Van Gilder Hotel (Deane Nelson) B. Noll presented a proclamation to Chris PROCLAMATIONS: Blankenship designating July 9, 1990, as CHRIS BLANKEN- SHIP APPRECIATION DAY in Seward. I C. Noll read a proclamation designating July PROCLAMATIONS: 19, 1990, as 267TH COAST ARTILLERY BATTALION APPRECIATION DAY in Seward. x. PRESENTATIONS WITH PRIOR NOTICE ONLY: (Taken out of order) B. WILLARD DUNHAM, Chairman of the Seward Trade and Commerce Advisory Board, presented the Board's annual report to the Council. Dunham reviewed the Board's successes over the past year and read the written report which had been distributed to the Council earlier. CIT.DISCUSSION: W. Dunham - T.Board Annual Report Noll noted that he had just recently been appointed to the Alaska Marine Highway System Advisory Board by Commissioner Hickey, and he looked forward to working with the Trade Board to assure that the city did not lose ground with the Ferry System. IV. APPROVAL OF MINUTES: Minutes of the last meeting were not available for review. V. APPROVAL OF REGULAR MEETING AGENDA: I SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN. BOARD OF ADJUSTMENT: Carr Gottstein appeal of denial of Variance PAGE 174 REGULAR MEETING - JULY 9, 1990 VOLUME 25 Noll asked that Item D be moved from the Consent Calendar to New Business, Item D (P&Z Appoint- ment) . THE QUESTION WAS CALLED AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. BOARD OF ADJUSTMENT HEARING: A. Notice of Board of Adjustment Hearing on appeal of denial of a REQUEST FOR VARIANCE as filed by Carr-Gottstein for a ten foot encroachment by the Eagle Quality Center into the side yard setback of Lot 6A, Block 3, Jesse Lee Heights Subdivision, was noted, and the Hearing was opened. Murphy & Arvidson explained the procedures and options before the Council. Schaefermeyer noted that this appeal was being heard by the Council for the second time following a second hearing before and denial by the Planning Commis- sion. He further noted that the appeal packet contained a transcript of the June 6, 1990, Planning Commission Public Hearing. He stated that the record reflected the reasoning of the two Commissioners who voted in favor of the variance, but the reasoning of those opposed was less clear. Schaefermeyer stated that the variance requested was the minimum variance possible to construct the needed addition. He stated that he would be comfortable with a Council decision to grant the Variance. He added that, while the Variance might not meet all of the technical requirements of the Code, there were enough extenuating circumstances to make granting of the Variance reason- able. ~: Bilton arrived at 8:05 p.m. Meehan noted that, if granted, this Variance would allow building right up to the lot line. He suggested that the City might want to review the Code to determine if the setbacks in this zone should be changed. Schaefermeyer stated that this issue could be addressed by the Planning Commission~ however, he was not prepared tonight to make any recommendation. Dunham stated that Commissioner Kowalski had spoken to Dieckgraeff, the adjoining property owner, who indicated that he might wish to build up to the lot line as well. In addition, Kowalski had checked with DEC and had found that there had been no new salad bar regulations initiated since 1983. She stated that she would be voting in opposition to the appeal. PAGE 175 REGULAR MEETING - JULY 9, 1990 VOLUME 25 I Sieminski asked for Martin's opinion concerning whether setbacks should be retained in this zone. Schaefermeyer stated that this was a question which should be referred to the Planning Commission. Sieminski stated that, if the setbacks were to remain, he would vote in opposition to the Variance. Noll stated that he agreed that all property owners should be treated equally. He urged the Ad- ministration to come forward with a plan to re-evaluate the setbacks in this zone. I PAUL CARR, 6401 A Street, Anchorage, 99518, representing Carr-Gottstein, noted that the Clerk's memorandum stated that she could find nothing in the record to support findings of fact regarding the denial of the Variance. He further noted new evidence which was presented to the Commission, that is the 1988 memorandum from Kerry Martin recommending approval of this Variance two years ago. He noted that Carr-Gottstein had no way to anticipate the growth which had occurred. In addi- tion, he noted the 40-ft. easement existing along the highway frontage which precluded constructing the store closer to the front of the property. Carr noted that this was a minimum Variance request which complied with the Comprehensive Plan and the Zoning Code and requested that the Council grant the Variance. MEEHAN MOVED TO UPHOLD THE APPEAL AS FILED BY CARR-GOTTSTEIN PROPERTIES; THE MOTION WAS SECONDED BY HILTON. I Meehan stated that he would like to support the Planning Commission; however, he was now prepared to vote in favor of the appeal. He stated that this was not intended as a vote against the Commission. He noted that he would like to look at all of the property within this zone and possibly remove the setbacks. Hil ton asked if the owners would be required to build with proper fire walls for zero lot line construct- ion if they were allowed to build up to the lot line. Diener answered affirmatively. Hilton said that he concurred with Meehan regarding his reluctance to overturn the Commission; however, this decision was made when only five Commissioners were present and did not represent a majority decision of the entire body. Dunham stated that Carr-Gottstein had built a store twice the size of the Seward store in Homer. In addition, C-G had closed a downtown store of 6,000 square feet which would have met their needs had they kept it open. For those reasons, she stated that she could not vote to give them special advantage. VARIANCE/JLH SUB: Carr Gottstein Variance GRANTED C.CLERK: Setting Salary LOBBYIST/CON- Extending con- tract RESO/BIDS: Rejecting all bids PAGE 176 REGULAR MEETING - JULY 9, 1990 VOLUME 25 Noll stated that he intended to support the appeal. He noted that, in an area in Seward where rapid development was taking place, it did not seem appropriate to throwaway 20 feet between lots on setbacks. THE QUESTION WAS CALLED AND THE APPEAL WAS UPHELD WITH FOUR YES VOTES AND BURGESS, DUNHAM AND SIEMINSKI VOTING NO. SIMUTIS MOVED TO GRANT THE VARIANCE; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH FIVE YES VOTES AND DUNHAM AND SIEMINSKI VOTING NO. RECESS: The meeting was recessed at 8:35 p.m. and reconvened at 8:45 p.m. VI. BOROUGH ASSEMBLY REPORT: Sewall was not present, and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None VII 1. APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR WITH THE EXCEPTION OF ITEM E WHICH WAS TO BE POSTPONED UNTIL THE NEXT MEETING; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution No. 90-074, setting the salary of the city clerk, was approved; B. Resolution No. 90-080, approving Amendment No. 1 to the Kent Dawson Company contract for lobbying services, was approved; C. Resolution No. 90-081, rejecting all bids submitted for the relocation of the Spring Creek Drainage Ditch, was approved; D. Moved to Regular Meeting Agenda; E. July 5, 1990, memorandum from City Clerk Murphy recommending that Council reappoint Chet Thorne to be the city's representative on the Borough Planning Commission was postponed until July 23, 1990; PAGE 177 REGULAR MEETING - JULY 9, 1990 VOLUME 25 I F. Application for permit for games of chance and skill as filed by the Seward Chamber of Commerce was noted for information; G. Change Order No. 1 to the D & L Construc- tion contract for clearing of shrubs and trees, increas- ing the contract amount by $600.00, was noted for information; and H. July 5, 1990, memorandum from Engineering and Utilities Manager Diener concerning a proposed Chugach Electric Association wholesale rate increase was noted for information. IX. PUBLIC HEARINGS: None X. PRESENTATIONS WITH PRIOR NOTICE: I A. JOHN SKARSVOG, 1010 Third Avenue, apologized for not appearing at the last meeting. He stated that he had met with Will Josey about the pos- sibility of funding a community center in Seward, in part to house the head start program which was rapidly outgrowing the library. He noted many safety concerns with the Library alleyway entrance. In addition, the Teen Center, 4H and Rotary Club could benefit from a community center. He suggested that taxing cigarettes and liquor was one way to raise funds for construction. Noll asked if a Teen Center would fit into a community center concept. Schaefermeyer stated that a Teen Center would fit very well in the traditional Com- munity/Recreation Center. Dunham asked if Head Start received funding which could help pay for this. Skarsvog stated that just over $1 Million in state funds was available for statewide grants. In addition, there were some federal funds available. XI. B. TAKEN OUT OF ORDER. See Page 173. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: C. Resolutions: 1. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: I GAMES OF CHANCE & SKILL: CON- -- CIT.DISCUSSION: J. Skarsvog RESO/LEASE/RE- Authorizing Sub- Lease RESO/LEASE/RE- Assignment of Lease PAGE 178 REGULAR MEETING - JULY 9, 1990 VOLUME 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHOR- IZING THE SUBLEASE OF CITY-OWNED PROPERTY BY KENAI FJORDS TOURS, INC., TO WAYNE CARPENTER, DBA SEWARD SALMON BAKE AND BBQ. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-078; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted the staff memorandum and the resolution before Council. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 2 . 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, AUTHOR- IZING AN ASSIGNMENT OF LEASE RE-049 FROM STEVE HACKETT TO ALASKA TREKS Ii VOYAGES, INC., TO INTEC, INC., AND APPROVING THE EXERCISE OF A LEASE RENEWAL OPTION FOR AN ADDITIONAL 5- YEAR PERIOD. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-079; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer noted the staff memorandum and the resolution before the Council. Hilton asked if the lease had already expired. Martin replied that it was currently in effect on a month to month basis. Hilton stated that he was concerned with this kind of arrangement. He asked why the city was not requesting proposals for the property rather than passing it through, adding that it appeared that city property was being broke red by a private party. He further stated that if the lessee was no longer interested in utilizing the property, the city should seek proposals on it. Schaefermeyer stated that Hackett had been pursuing the assignment since some time before the lease had expired. However, it had reached the Council once the lease had technically expired. He stated that the city had not looked at this as "brokering of city property" by Hackett. He pointed out that the rate for the lease would be set by fair market appraisal, and the city would be getting at least a market set rate for the property. PAGE 179 REGULAR MEETING - JULY 9, 1990 VOLUME 25 I Hilton stated that it was not just a matter of whether the city would get fair market value. He stated that this was similar to other incidents for which the city had been criticized in the past. He noted that the city should advertise the property to give the public a chance to bid on the opportunity of leasing it. Schaefermeyer stated that the administration had considered this as an option Hackett had under his lease with the city and was not done with the intention of allowing public property to be brokered. Dunham asked if the improvement belonged to Hackett. Schaefermeyer stated that the building was city property. Dunham stated that she concurred with Hilton and felt this should go out for competitive proposals to give everybody else a chance to bid on it. Martin stated that the original lease was for five years with an option to renew for five years. On May 10, 1990, Hackett formally requested the option to renew. At that time, he was contemplating having Intec manage the business. By the June 15 letter, Hackett had decided to sell the business to Intec, Inc., and, there- fore, asked to have the lease assigned to the new owners. I Hil ton asked if the presence of kayaks had caused a problem for the Barbormaster' s operations. Singleton stated that there had been no problems between kayakers and boaters since the first year of operation. THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANIMOUSLY. XII. UNFINISHED BUSINESS: None XIII . NEW BUSINESS: 1991. Continuation of the Trade Board throuqh FY TRADE BOARD: Continued through FY 1991 A. HILTON MOVED TO CONTINUE THE TRADE BOARD THROUGH FISCAL YEAR 1991; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. B. ProDosed settlement of billinq disDute with Chuaach Electric Association. I Arvidson noted that his office had supplied the Council with a memorandum outlining the background of the dispute. He noted that the dispute dated back to the BILLING DISPUTE: CEA settlement agreement AP- PROVED CLAIM FOR DAMAGES: R.Latta Claim re- ferred to Insurance Carrier P&Z: Blaine Bardarson appointed PAGE 180 REGULAR MEETING - JULY 9, 1990 VOLUME 25 time the powerline was constructed by Power Constructors. He recommended approval of the settlement since it represented 25%-30% of the total CEA could claim against the city. MEEHAN MOVED TO APPROVE THE SETTLEMENT AGREE- MENT WITH CHUGACH ELECTRIC ASSOCIATION IN THE AMOUNT OF $44,924.17; THE MOTION WAS SECONDED BY DUNHAM. In response to a question from Dunham, Schaef- ermeyer stated that this would be paid out of Electric Department funds over a 6-month period at no interest. He stated that he felt this cost could be absorbed over this time without adversely affecting the FY 1991 Elect- ric Fund Budget. THE QUESTION WAS CALLED AND THE MOTION CARRIED UNANIMOUSLY. C. Claim for damaqes as filed bv Rebecca L. Latta. SIMUTIS MOVED TO TENDER THE CLAIM AS FILED BY REBECCA L. L.\TTA TO THE CITY'S INSURANCE CARRIER FOR ADJUSTMENT; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that Latta's vehicle was damaged by an Electric Utility truck at the intersection of Seward Highway and Nash Road. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. D. A~pointment to Planninq Commission. NOLL RECOMMENDED THE APPOINTMENT OF BLAINE BARDARSON TO THE PLANNING COMMISSION to fill Woodruff's seat. Be asked that Carpenter's application be put aside for consideration should another seat become vacant. XIV. CITY MANAGER REPORTS: Schaefermeyer thanked everyone responsible for making the Fourth of July celebration a success. He stated that he would be taking annual leave from July 16- 30, 1990. Arvidson reported on the status of the prison claim. I I I PAGE 181 REGULAR MEETING - JULY 9, 1990 VOLUME 25 xv. COUNCIL DISCUSSION: SIEMINSKI asked when someone was going to be tending the cemetery grounds. Schaefermeyer stated that some local senior citizens had asked that the city allow the daisies to bloom in the cemetery before mowing this year. He noted that the city would be taking care of this shortly. DUNHAM complimented the city on the clean up after July 4. MEEHAN stated that he was pleased to represent the city at the Chugach Forest Products mill opening last week. He stated that he was impressed with the number of local people who were employed there. Meehan also stated that the parking layout in the Small Boat Harbor was great, but there was a problem with signage. He asked the administration to address this issue. He also stated that he would favor warnings for offenders rather than tickets and fines. NOLL concurred with Meehan about the need for more signage. He suggested that the signs be made technically readable and attractive enough to draw the eye. Noll suggested that everyone read the Sunday business section of the Dailv News concerning Seward's "new boom". The mayor congratulated the Chamber of Commerce and all who took part in the Fourth of July celebration. In response to a question from Noll, Arvidson stated that the city was tracking the Leaking Underground Storage Tanks situation. He stated that he was interest- ed in conducting a seminar locally this fall for the city and local businesses wanting information. He stated that late August would be the earliest his office could conduct such a meeting. XVI. CITIZENS' DISCUSSION: None XVI I. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None XVII I . ADJOURNMENT: The meeting was adjourned at 9:38 p.m. ~ Mayor -~- h b \:3 . ~J Ij . f::1 .' /! , or. . ..;...." ,J , '. ""t, ,\', ..~'f' > 41> I I 't)-. 1- ,,.,.... L' 1""" ,', PRESENTATIONS: Exchange Stu- dents presented to Council PROCLAMATIONS: PROCLAMATIONS: PRESENTATIONS: PAGE 182 VOLUME ~ REGULAR MEETING - JULY 23, 1990 I. CALL TO ORDER: The July 23, 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: Councilmember Sieminski led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Hilton, Mee- han, Sieminski and Simutis Present also: Assistant City Manager Yanez, City Attorney Arvidson, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Deputy Fire Chief Squires, Finance Director Gif- ford, Parks and Recreation Di- rector Josey, Harbormaster Sin- gleton, Librarian Nicolas, Po- lice Chief Bencardino, Hospital Administrator Campbell and City Clerk Murphy SPECIAL ITEMS/PRESENTATIONS: A. Dr. Warren Huss, President of SIFA, introduced the exchange students from Obihiro, Japan - Yuko Kuribayashi, Miyuki Ita, Shion Miura and Teiichi Murayama. Each student gave a short presentation. Huss then introduced the Seward students who had been chosen to participate in this year's exchange - Amy McCauley, Steven Huss, Brian Johnson, Cordy Sewall and Jamey Hasty (alternate). B. Noll presented a proclamation designating July 23, 1990, as Dan Williams Appreciation Day to Dan Williams. C. Noll presented a proclamation designating August 4, 1990, as Coast Guard Bicentennial Celebration Day to USCG Lt. Shelton. D. Noll read a plaque received from the Alaska Permanent Fund Board thanking the city for its hospitality during the Board's recent meetings in Seward. I I I PAGE 183 REGULAR MEETING - JULY 23, 1990 VOLUME 25 IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE JUNE 25, AND JULY 9, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN. Yanez requested the addition of the following resolution to the regular meeting agenda: Proposed Resolution No. 90-086, approving receipt of a state grant for construction of a new transmission line. Yanez asked to delete Items XII(B) (1) and (2). He noted that Thorne had withdrawn his resignation. THE QUESTION WAS CALLED AND THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai Jonathan Sewall the Assembly. Peninsula Assembly Representative reported on the most recent meeting of VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: CARL BERGER, 211 Lowell Canyon Road, stated that he had recently begun operation of a Bed and Breakfast at the urging of Keith Campbell and Bob McCabe. He said that he had been contacted by the city concerning the new B&B ordinance, had undergone the fire inspection, but had been denied a permit because he did not own the residence out of which he operated his business. Dunham stated that the "owner occupant" provision was a part of the original ordinance. Hilton added that the intent of the Council had been to avoid the possibility that one operator might purchase several homes in Seward for the purpose of establishing several B&B's as a business enterprise. Berger asked the Council to waive the owner- occupant provision of the ordinance to allow him to provide a needed service to the community. In response to a question from Noll, Arvidson advised the Council not to act immediately. He stated that it might be possible for Berger to request a CIT.DISCUSSION: C.Berger - B&B RESO/ELEC.DEPT: Transfer of In- tertie to city RESO/VARIANCE: C-G Findings RESO/CHAMBER OF COMMERCE: Approp. funds C.ATTY: PAGE 184 REGULAR MEETING - JULY 23, 1990 VOLUME 2r Variance from the Planning Commission; however, he would have to look into this. He asked Berger to contact him the next morning to discuss various options open to him. VIII. APPROVAL OF CONSENT CALENDAR: HILTON MOVED TO APPROVE THE CONSENT CALENDAR AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Resolution transfer of the Daves Creek was approved; No. 90-083, accepting the Intertie Project to the city, B. Resolution No. 90-084, adopting Findings of Fact and Conclusions of Law regarding Carr-Gottstein variance appeal, was approved; the the C. Resolution No. 90-085, appropriating funds and contributing to the Seward Chamber of Commerce for printing of Seward promotional brochures, was approved; D. as follows: Invoices for legal services were approved PERKINS COlE, May 1990 - $27,358.83 PERKINS COlE, June 28, 1990 - $100.15 E. July 6, 1990, memorandum from Diener concerning the award of a contract to METCO, Inc., for miscellaneous concrete work at the North Dock for a total contract amount of les s than $10, 000, was noted for information; and F. July 18, 1990, memorandum from Gifford recommending that Council schedule a work session for August 2, 1990, regarding the city's health insurance plan was noted, and the Clerk was instructed to advertise the work session. IX. PUBLIC HEARINGS: None PRESENTATIONS WITH PRIOR NOTICE: None X. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: 1. Copies having been made available to the public, Noll noted by title only a proposed ordinance entitled: PAGE 185 REGULAR MEETING - JULY 23, 1990 VOLUME 25 I AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SECTION 2.05.030(1) OF THE CITY CODE RELATIVE TO THE ACCESS TO CITY EM- PLOYEE PERSONNEL RECORDS. Murphy noted that a motion to enact the proposed ordinance was on the floor. THE QUESTION WAS CALLED AND THE ORDINANCE FAILED TO PASS WITH ALL PRESENT VOTING NO. 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, CONCUR- RING IN THE SEWARD COMMUNITY HOSPI- TAL BOARD CONTRACT WITH BRIM HEALTH- CARE, INC. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-082; THE MOTION WAS SECONDED BY MEEHAN. I Yanez stated that the Community Hospital Board wished to submit for consideration by the Council a management agreement with Brim Healthcare, Inc., to operate the hospital. He noted that under the terms of the agreement, the cost to the hospital would be $68,000 during the first of a five year commitment, plus the salary of an administrator. Simutis stated that she had participated in Board work sessions regarding this proposed agreement and recommended approval. sieminski asked that Board president John Burckhardt review the proposal for the public. Burckhardt stated that Brim would provide administration and financial management, goals and objectives, and a higher level of service to the hospital's patients. In addition, Brim would address improvement of the hospi tal's image, its billing and collection efforts, etc. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH SIX YES VOTES AND HILTON ABSTAINING. 2. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING RECEIPT OF A STATE GRANT FOR 185 ORD/PERSONNEL: Access to Personnel Records ~ FAILED RESO/SGH: Apprvg contract with Brim for mgmt services RESO/GRANT/ELEC. DEPT: Accepting grant for T-Line Construction 186 P&Z: C.Thorne reappointed to KPB Planning Commission CLAIM FOR DAMAGES: D. Smith claim DENIED PAGE 186 REGULAR MEETING - JULY 23, 1990 VOLUME 2. DESIGN AND CONSTRUCTION OF THE SEWARD TRANSMISSION LINE FROM LAWING TO FORT RAYMOND SUBSTATION. HILTON MOVED TO APPROVE RESOLUTION NO. 90-086; THE MOTION WAS SECONDED BY DUNHAM. Yanez explained the emergency which required adding this item to the agenda, stating that each day of delay in accepting the grant would result in the city losing up to $600 per day in interest on investment of the funds. THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. XII. UNFINISHED BUSINESS: A. City office SDace lease - N.S.I. aqree- ~. Yanez apologized for not getting his memorandum in the packet last week. He noted that N.S.I. was still putting together its financial information. SIMUTIS MOVED TO POSTPONE ACTION UNTIL AUGUST 13, 1990; THE MOTION WAS SECONDED BY HILTON AND APPROVED WITHOUT OBJECTION. B. Planninq commission resiqnations and aDDointments. Noll noted that Chet Thorne had withdrawn his resignation from both the city and borough commissions; therefore, there was no longer a vacancy to be filled. NOLL RECOMMENDED REAPPOINTMENT OF THORNE TO THE BOROUGH PLANNING COMMISSION; COUNCIL CONCURRED WITHOUT OBJECTION. XIII . NEW BUSINESS: A. Claim for damages. Donald M. Smith. MEEHAN MOVED TO APPROVE A CLAIM FOR DAMAGES TOTALLING $81.60 AS FILED BY DONALD M. SMITH; THE MOTION WAS SECONDED BY HILTON. Yanez noted the memorandum from Diener recom- mending denial of the claim. Diener's investigation of the electric flow at the time of the damage showed that no surge had occurred. THE QUESTION WAS CALLED AND THE MOTION FAILED WITH ALL PRESENT VOTING NO. PAGE 187 REGULAR MEETING - JULY 23, 1990 VOLUME 25 I B. Request for authorization to rebuild the existinq fish rack with containers for disposal in deep water. HILTON MOVED TO APPROVE REBUILDING THE FISH RACK TO PROVIDE CONTAINERS TO DISPOSE OF FISH WASTE IN DEEP WATER; THE MOTION WAS SECONDED BY SIMUTIS. Yanez stated that since last summer the Harbor staff had investigated options for dealing with fish waste at the base of the city's fish cleaning station. This investigation had revealed that the apparent best solution was construction of a giant floating basket to contain the fish waste until it could be taken to deep water for disposal. Meehan stated that, in his opinion, the harbormaster had made the proper recommendation, and the Port Development Committee had reviewed and concurred. In response to a question from Noll, Singleton stated that DEC had approved this plan. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. XIV. CITY MANAGER REPORTS: I YANEZ noted that the new transmission line had survived the Governor's cuts. However, the city lost its grant for the new doctor's clinic, and Puffin Public Broadcasting had lost its reappropriation of lapsed funds. YANEZ noted that Arvidson and an associate would be conducting a seminar concerning the handling of public inebriates. ARVIDSON reported on the status of the prison litigation regarding the rusting windows. He noted that the city had obtained consent of the state for the state to defend the city. A decision on the arbitration was received today stating that Samwahn was responsible for cleaning and painting the windows. He noted that the city would bear no financial responsibility for the settlement. XV. COUNCIL DISCUSSION: BURGESS noted that he represented the city at a dinner honoring the 267th Coastal Artillery Battalion. He noted that the attendees were overwhelmed by their reception in Seward. I 187 ~ Authorization to rebuild fish rack 188 ~: ~,~~ .... ~ ,': . .~ I~ }:,. "", f ,. . PAGE 188 REGULAR MEETING - JULY 23, 1990 VOLUME 2r DUNHAM complimented the Chamber of Commerce on the sign purchased for its new office on the Highway. SIMUTIS stated that the Planning Commission would be conducting a work session to discuss the sign ordinance on August 1 and she encouraged those interested to attend and give input to the Commission. NOLL urged everyone to attend the July 25, 1990, public meeting sponsored by SAAMS to discuss the proposed creation of a marine mammal center in Seward. XVI. CITIZENS' DISCUSSION: JAMES KRASNANSKY, 531 Sixth Avenue, urged the Council to act on the Hospital Board's recommendation that the hospital employees be allowed to bargain with the city. He read a letter from IBEW threatening a suit against the city if it did not act. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: ARVIDSON advised the Council that it would be inappropriate to comment at this time given the IBEW threat of a potential lawsuit. XVII . XVIII. ADJOURNMENT: The meeting was adjourned at 8:45 p.m. ~~ Mayor (City Seal) ------------------- PAGE 188 REGULAR ME -- -------------------------------- - AUGUST 13, 1990 VOLUME 25 I. CU.T. TO ORDER: The August 13, 1990, regular meeting of the Seward City Council was called to order at 7:35 p.m. by Mayor william C. Noll. II. OPENING CEREMONY: Councilmember Dunham led the pledge of allegiance to the flag. PAGE 189 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 III. ROLL CALL: I Present were: Mayor Noll and Councilmembers Burgess, Dunham, Hilton, Mee- han, Sieminski and Simutis Present also: City Manager Schaefermeyer, Assistant City Manager Yanez, City Attorney Arvidson, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Parks and Recreation Di- rector Josey, Librarian Nico- las, Finance Director Gifford, Community Development Director Martin and City Clerk Murphy IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE JULY 23, 1990 , MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: I SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY MEEHAN. Murphy requested the deletion of Agenda Item X(A) - Presentation by Andrew Patapoff - at Patapoff's request. She also requested the addition of a new item X(B) - Presentation by Eugene Haberman. Noll requested that Item "J" be moved from the Consent Calendar to the Regular Meeting Agenda as New Business Item "B". THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Sewall was not present. VI . CITIZENS' 0 ULED FOR PUBLIC ITEMS I LEE MCANERNEY, 207 Bear Drive, spoke in favor of Resolution No. 90-095, providing funding & commitment of city property for the Alaska Marine Mammal Center ( C). She noted that SAAMS wished to work with city, state, university and private industry to develop the 189 CIT.DISCUSSION: L.McAnerney - SAAMS Funding 190 CIT.DISCUSSION: L.Johnson - SAMMS Funding CIT.DISCUSSION: W. Carpenter SAAMS Funding CIT.DISCUSSION: T. Smi th - SAAMS Funding RESO/ELECTIONS/ARR: Opposing state ballot measure RESO!RE- /LEASE: Assiignment RESO/GRANTS: Alpar Grant PORT COMMITTEE: S.Lust Resignation ENCROACHMENTS: Alaska Shop CON- PAGE 190 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 waterfront. McAnerney said that she would be present at break to answer any questions the Council might have. LARRY JOHNSON, 1809 Jesse Lee Drive, representing Seward Enhancement Association, spoke in support of the SAAMS project and Resolution No. 90-095. He stated that the AMMC represented another opportunity to re-anchor the community to its marine origins. He urged approval of the resolution. WAYNE CARPENTER, 325 Fifth Avenue, Executive Director of the Chamber of Commerce, spoke in support of the AMMC project. He stated that the members had been polled and the project had received almost unanimous support, although there were mixed feelings about how the facility should be funded. TOM SMITH, 505 Second Avenue, spoke on behalf of the University and the scientific community. He stated that both groups were enthusiastic about this project. He stated that the time was apropos for development of a marine mammal center in Alaska. VIII. APPROVAL OF CONSENT CALENDAR: MEEHAN MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. The following actions were taken: A. Resolution No. 90-087, Ballot Measure No.1, was approved; B. Resolution No. 90-091, consenting to the assignment of lease interest of Dale B. Clemens to the Estate of Dale B. Clemens, was approved; opposing State C. Resolution No. 90-092, accepting an ALPAR Grant and appropriating funds for litter control, was approved; D. Resignation of Scott Lust from the Port Advisory Committee was accepted and the Clerk was authorized to advertise the vacancy; E. Encroachment Permit granted to the Alaska Shop to allow a 4" encroachment into the city right of way to support a marquee along the front of the building was noted for information; contract addition approved F. Change order to the H2W Constructors for construction of the prison industries at the Spring Creek Correctional Center were as follows: 191 PAGE 191 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I No. 10A - To remove existing finishes on the walls of the Crafts Shop Addition as referenced in RFP 6 (H2W Log 21) and RFP 7 (H2W Log 23) and Directive G (+$3,290); No. 10B - To provide and install temporary plywood protection over the damaged roof panels and replace eleven damaged roof panels as described in letter dated 03/19/90; provide and install ice guard as described in RFP 11, Reference Directive L and H2W Log 37 (+$21,252); No. 10C - To modify wall angle and roof deck at grid line 15 of the Prison Industries Building as directed by Directive D, Reference H2W Log 17 (+$2,468); No. 10D - Negotiated administrative settlement of Contractor's claim pertaining to the exterior stair nosings at the PIB (+$758); No. 10E - To furnish and install angle bracing on the first floor PIB CMU walls as described in DCVR' s 31 and 32 ( 3), Reference H2W Log 31 (+$9,080); I No. 10F - To furnish and install additional light gauge metal framing as required to correct the problems discussed in H2W Letter AHQ-01l-90 (+$4,274); No. lOG - To furnish and install expansion joints and saw concrete joints at the PIB second floor as directed, Reference H2W Log 47 (+$1,169); No. 10H - To provide all labor and materials to complete the mechanical modifications as listed in Reference H2W Log 49 (+$2,872); No. 10I - To provide and install metal stud framing and GWB at the CSA corridor, Reference H2W Log 51 (+$1,984); No. 10J - To furnish and install 1-1/2" steel flat bar along the bottom wallside rails of the interior metal stairways, Reference Directive P and H2W Log 52 (+$666); I No. 10K - To Paint all interior galvanized surfaces (ducts and conduits) as described in Kumin Response to DCVR No. 36, Reference H2W Log 53 (+$1,000); 192 PAGE 192 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 No. 11A - Work to be done as described in RFP 13 and B2W Log 59, Reference H2W Letter AHQ-140-90 (Extend contract by 8 work days; +$2,554); No. 11B - Revise the PIB boiler piping layout to conform with sketch, Reference Log 51 (+$15,- 470); No. 11C - Engineer, program and install hard- ware to provide monitoring of eight additional fire alarm contact points in the PIB, Reference Log 54 (+$3,322); No. 11D - Shift the 18" paint booth stack to miss an overhead roof truss, Reference Log 56 (+$379); No. 11E - Furnish only five monitor strikes and one door position switch as detailed in Kumin Fax of 06/08/90, Reference Log 58 (+$1,112); No. 11F - Contract price adjustment for elec- trical changes, Reference Log 60 (+$8,669); No. 12A - Furnish and install additional light gauge metal framing at the Prison Industry Building per H2W Log 57, AHQ-096-090 dated June 29, 1990 (+$4,509); G. August 7, 1990, memorandum listing pur- chase orders between $5,000 and $10,000 which were issued in June and July 1990, was noted for information; B. August 3, 1990, memorandum from Gifford concerning city investments as of June 30, 1990, was noted for information; I. A revised Spring Creek Correctional Center construction budget was noted for information; J. Moved to Regular Meeting Agenda; K. June 30, 1990, preliminary financial report as prepared by Gifford was noted for information; and C.ATTY: L. Invoices for legal services were approved for payment as follows: PERKINS COlE - July 1990 - $22,954.02 PERKINS COlE - July 17, 1990 - $23.10 I I I PAGE 193 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law was noted, and the public hearing regarding the proposed LEASE of Tract 2, Water- front Tracts, to Exxon Company, U.S.A., for continued operation of a wildlife rescue center, was opened. WAYNE CARPENTER, 325 Fifth Avenue, voiced his personal support and Chamber of Commerce support for the renewal of the Exxon lease on the waterfront. He stated the Chamber would also support incorporation of this facility into the SAAMS project. 193 PUBLIC HEARINGS, Exxon Lease No one else appeared in order to be heard, and the public hearing was closed. B. Notice of public hearing as posted and PUBLIC HEARINGS: published as required by law was noted, and the public PacTel Lease hearing regarding the proposed LEASE AGREEMENT with Pacific Telecom Cable, Inc., for c~nstruction and opera- tion of a ...i:'lalifl :l:'IUl!'1 'n_!.~was opened. No one appeared in order to be heard, and the public hearing was closed. :Ir t~~-OfTtG ~r~7 x. PRESENTATIONS WITH PRIOR NOTICE: A. ANDREW J. PATAPOFF - Presentation deleted at Patapoff's request. B. EUGENE HABERMAN, Anchorage, presented Council with his August 1990 publication entitled "Your Personal Guide to Anchorage and Seward." He thanked those who had helped him in Seward, including City Manager Schaefermeyer and Community Development Director Martin. In response to a question from Dunham, Haberman stated that he had always envisioned a Peninsula-wide publication. He noted that he had added Seward first because of the interest shown by Seward advertisers. 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, PROVID- ING FOR LIMITED TENANT OPERATIONS OF BED AND BREAKFAST. CIT.DISCUSSION: E.Haberman 194 PAGE 194 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 SIMUTIS MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 635; THE MOTION WAS SECONDED BY BURGESS. Simutis stated that introduction of this ordinance was the result of many comments from the public regarding the current Bed and Breakfast regulations. She stated that give Seward's high rental market, limited availability of hotel space in the summer and the rise in popularity of B&B's, it might be appropriate to consider amending the ordinance to allow renters to operate limited B&B's. She stated that be restricting rental B&B's to one bedroom, the city would avoid the possibili- ty that an investor would buy several properties to establish a B&B chain. In addition, the ordinance would require the owner of the property to give written permission for operation of the business. She added that the town would benefit from this change to the ordinance. Dunham stated that she was concerned that this ordinance did not go to P&Z first. She stated that she was also concerned about having the attorney draft a new ordinance after passage of the last one some two or three weeks earlier. Dunham stated that before starting a business, an owner had the responsibility to find out what the rules were. She stated that she would vote to introduce so that public hearing could go forward, but she did not agree with the ordinance. Sieminski agreed that the-ordinance should go to the Planning Commission first. Burgess and Noll concurred. Meehan stated that he would support introduc- tion and would look forward to public hearing to get the public's view. Hilton asked if the ordinance could be intro- duced and remanded to P&Z for review before Council's public hearing and vote. He added that he really did not like the ordinance. Dunham stated that she would not object to those impacted operating until the ordinance was finally acted upon. She stated that many of the ordinances passed by the Council were unenforceable. Schaefermeyer stated that the city did its best to enforce all code provisions, but much of the zoning regulations were enforced only when there was a com- plaint. DUNHAM MOVED TO REFER ORDINANCE 635 TO THE PLANNING COMMISSION WITH A PROVISION THAT THOSE IN OPERATION BE ALLOWED TO OPERATE UNTIL AFTER ACTION ON THE PAGE 195 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I ORDINANCE BY THE COUNCIL; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. Hilton asked if allowing renters to operate B&B's pending action by the Council on this particular ordinance would "grandfather" these uses. Arvidson stated that this would not be considered a grandfathered use. Murphy asked if Council had the authority to waive an ordinance provision which had been enacted several years ago. Arvidson stated that the Council was merely waiving "enforcement" of the ordinance. 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: I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A TEMPORARY LEASE AGREEMENT OF CITY PROPERTY WITH EXXON COMPANY USA FOR THE CONTINUED OPERATION OF A WILDLIFE RESCUE CENTER. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-088; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this resolution would authorize the continued operation of the wildlife rescue center by Exxon Company, U.S.A. He noted that the rental rate would remain unchanged. Sieminski asked how this would affect dedica- tion of property for the AMMC. Schaefermeyer stated that any change in ownership of the property would require a new lease agreement, adding that this lease would terminate upon change of ownership. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 2. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: I 195 RESO/RE- /LEASE: Exxon Lease 196 RESO/RE- /LEASE: Pacific Telecom -Lease RESO/STREETS: Designating Bette Cato Avenue PAGE 196 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING AN EASEMENT AGREEMENT ( LEASE) WITH PACIFIC TELECOM, INC., FOR CONSTRUCTION AND OPERATION OF A FIBER-OPTIC COMMUNICATIONS CABLE THROUGH SEWARD. HILTON MOVED TO APPROVE RESOLUTION NO. 90-089; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer stated that the Council had approved an Easement Agreement with Pac Tel two or three meetings ago. He noted that this new agreement provided a lease of easement and provided for Pac-Tel to bear the cost of relocation of the cable should this become necessary. (In the earlier agreement, the city bore all cost of relocation.) In addition, the fee for the easement right would be reduced from $300,000 for the life of the agreement to a fee of $8,000 per year for the first five years of the lease. In the fifth year, there would be an adjustment based upon a market appraisal. Schaefermeyer stated that, since the estimated cost of relocation of the line in today's dollars would approach $2.6 Million, the reduction in fees in exchange for transferring the burden of possible relocation was a good deal for the city. Dunham asked if this lesser lease rate would impact the value of the property which might be dedicated to the AMMC. Schaefermeyer stated that this would not impact the value of the Waterfront Tracts. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 3. 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, DESIG- NATING BETTE CATO AVENUE. HILTON MOVED TO APPROVE RESOLUTION NO. 90-090; THE MOTION WAS SECONDED BY BURGESS. Noll noted that, because of time considerations dealing with Ms. Cato, the Clerk's office contacted the Planning commissioners and received their verbal consent before placing the resolution on the agenda. He noted that Cato was a big supporter of Seward and had played a major role in securing funding for local projects such as the Marine Industrial Center. PAGE 197 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT OF THE COUNCIL. Noll noted that dedication ceremonies would be scheduled prior to the next Council meeting. 4 . 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- ING AN AGREEMENT WITH N.S.I. PART- NERSHIP FOR LEASE OF CITY OFFICE SPACE. HILTON MOVED TO APPROVE RESOLUTION NO. 90-093 WITH A STIPULATION THAT APPROVAL OF THIS RESOLUTION WOULD APPROVE THE PRIOR MOTION CONTINUED FROM THE LAST MEETING; THE MOTION WAS SECONDED BY SIMUTIS. I Schaefermeyer stated that this resolution would provide a four-year lease of office space for the city in the Ray Building. He stated that, under the agreement, N.S.I. would be required to make certain renovations and improvements to the property within a 120-day period. In addition, the lease also required N.S.I. to hold the city harmless for any suits brought regarding handicap access to the building. At the conclusion of two years, there would be a cost of living increase in the rental rate based upon the Anchorage Consumer Price Index. Hil ton stated that the agreement appeared to do a much better job of setting forth who was responsible for what. He asked if the lease rate was the same as the city was currently paying. Schaefermeyer stated that there was a reduction in the per square foot rate the city was currently paying. Hilton stated that he favored keeping the offices in the Ray Building and he supported approval of the resolution. Simutis concurred. She stated that she was pleased to see that N.S.I. was able to come to the table with the city and reach an agreement. I In response to a question from Burgess, Schae- fermeyer stated that the original RFP was for a minimum of two years. He stated that this agreement was for four years in consideration of the large investment N.S.I. would be required to make in the facility. The longer lease term was needed to give N.S.I. an opportunity to recoup this investment. In addition, N. S . I. was indemni- fying the city in regards to handicap access suits as well as maintaining the building in accordance with both 197 RESO/C.HALL/LEASE: Lease of city of- fice space 198 RESO/FISHING: Allocation of Ground fish PAGE 198 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 current law and any future regulations. responsibility and liability warranted period. This increased a longer lease Burgess asked what the penalty was if N.S.I. failed to make all needed repairs within the 120 days set forth in the agreement. Schaefermeyer stated that if the obligation was not met (and if N.S.I. did not have good and sufficient reason for the delay) the city could get out of the lease. Burgess stated that he was going to vote in favor of the resolution; however, he did not believe that the city had been totally fair to the other proposers. Noll stated that the city was better off having gone through this lengthy process. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FOUR YES VOTES AND DUNHAM, MEEHAN AND SIEMINSKI ABSTAINING. 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, REGARD- ING ALLOCATION OF GROUNDFISH. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-094; THE MOTION WAS SECONDED BY HILTON. Noll asked if Meehan, an employee of Seward Fisheries, should abstain. Arvidson stated that he probably should abstain. Willard Dunham, Trade Board Chairman, stated that this resolution was the result of action taken at the last Trade Board Meeting. He urged Council to approve the resolution. Noll asked how this resolution would affect Fishing Company of Alaska (FCA). Dunham stated that the Trade Board was seeking "middle ground" which would allocate the resource equally between in-shore and off- shore processors. He noted that FCA was already experi- encing problems with the supply of groundfish and could no longer fish where the owners had intended before locating in Seward. Dunham stated that an equitable allocation system might actually improve this situation. In response to a question from Noll, Dunham stated that it would probably be a good idea for the city to have a representative attending NPFMC meetings. 199 PAGE 199 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I Noll stated that two of the resolution's "Whereases" bothered him, because they did not take into account FCA's contributions to the cODDllunity. Dunham stated that the Board did soften the resolution somewhat because of the FCA presence in the cODDllunity. Noll asked Dunham if the Trade Board would object to writing a letter to the NPFMC stating that Seward had a "middle ground" example with FCA. Dunham stated that this would not be a problem. Chris Gates stated that the city had testified before NPFMC on more than one occasion regarding FCA's unique status in Seward and the state. THE QUESTION WAS CALLED AND THE MOTION CARRIED SIX YES VOTES AND MEEHAN ABSTAINING. The meeting was recessed at 8:58 p.m. and reconvened at 9:09 p.m. 6. Copies having been made available to RESO/SAAMS: Action the public, Noll noted by title only a proposed resolu- postponed tion entitled: RECESS: I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVID- ING FUNDING AND COMMITMENT OF CITY PROPERTY FOR THE DEVELOPMENT OF THE ALASKA MARINE MAMMAL CENTER. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-095; THE MOTION WAS SECONDED BY DUNHAM. I Schaefermeyer stated that the Seward Associa- tion for the Advancement of Marine Science (SAAMS) had approached the city to request support and cODDllitments to further the development of the Alaska Marine Mammal Center (AMMC). He stated that the resolution incorporat- ed two requests - identification of the proposed site of the center - Tracts 2-6, Waterfront Tracts (5 & 6 are currently restricted), and a request for the appropria- tion of $100,000 from the Fund Balance for the purpose of funding certain projects necessary for the further development of the mammal center project. This would include travel to like facilities, hiring of an executive director to provide fulltime staff to attend to fund raising activities and administrative duties, and for preliminary design work and site planning to further the project along. He noted that this was not a binding cODDllitment to transfer the land. This would require public hearing and specific action by resolution. Resolution No. 90-095 would merely identify the potential site of the facility. The appropriation, if approved, would be to a special revenue account which could be 200 PAGE 200 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 expended only under guidelines set forth in the City Code. Expenditures would be brought to the Council before being encumbered. He suggested that the Council might want to hold a work session and public hearing before acting on the resolution. WILLARD DUNHAM, Forest Acres (Alder & Dimond), spoke in support of the resolution. Dunham noted that the AMMC could address the steller seal lion problem, among others. He also asked that the city request that NMFS hold public hearings regarding the steller sea lion problem in Seward. A.J. PAUL, 611 Sixth Street, stated that marine mammals were the hot topic right now. He stated that currently all the money and work on marine mammal studies would probably go to Seattle. If the city had the AMMC, a good deal of that money would probably be funnelled through Seward. Hilton asked Dr. Paul why most of the work would be done out of Seattle. Paul stated that there are presently no research facilities north of Santa Cruz. The scientists in Seattle, therefore, represent the northern-most scientists who could participate in marine mammal research in conjunction with Santa Cruz. He stated that Seattle did not physically have a place to do what SAAMS wished to do in Seward. Meehan complimented SAAMS for the enthusiasm and hard work of its members. In response to his question, Paul stated that the grand plan would incorpo- rate a rescue center, research and public education/tour- ism. Meehan asked if the city knew the value of the property in question. Schaefermeyer stated that current annual rental rate was $0.32-.35 per square foot. Meehan stated that this value seemed low. Meehan also asked how much time the city had put into the project. He stated that this could be used as in-kind donation which could then be used to get matching funds from various agencies. TOM SMITH, IMS Director, stated that the Hatfield Marine Center in Oregon had an RFP out at the present time. The criteria were to promote tourism, city development, and fisheries. He stated that time donated, plus the value of the land, came to more than $1 Million. Be stated that the initial monies were needed to see that the phased operation was administered carefully. Meehan stated that he knew the timing was critical, but he felt a work session and public hearing were needed. He suggested that the funding be thoroughly discussed at the work session. He added that he did feel the city was the proper entity to provide the 201 PAGE 201 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I foundation through funding and land commitment, but he would like to see additional information and input from the public. Noll noted that the packet contained supporting letters from the National Park Service, Kenai Fjords National Park Superintendent Anne Castellina, Director of Marine Fisheries Service, Alaska Sea Grant College Program, BP Exploration, UAA Chancellor Don Behrends, etc. He added that a public meeting was held on July 25th at IMS. Each boxholder in Seward received a notice and public comment was taken following presentations by the scientific community and architects. He stated that this matter had been before the public and had gained international attention. Dunham stated that one of the unique features Seward would offer would be its location; scientists would be brought to the mammals, not the other way around. She stated that, from a scientist's point of view, this was much preferred. In addition, this project would enhance downtown and would tie the downtown and Small Boat Harbor together. She agreed that public hearings were needed to make the public understand that this was going to cost money. I Burgess stated that this was a fantastic project. He noted that some commitments had been made for the land in question, including the Teen Center, Northern Stevedoring, Ferry and Park land. He further noted that the grant requested represented 15-20' of the ci ty' s available cash. He stated that the Council should be very much aware of where the money was going and how it was to be spent. Sieminski stated that he supported the project. He asked who would own the facility once completed. Noll stated that this question was still open. A.J. PAUL stated that the incorporate a park-like setting. possible that it would fit into the 5 and 6. Mammal Center would Therefore , it was park land on Tracts WILLARD DUNHAM stated that no one was in a position at this time to say how the administration of the facility would fit with the university, the com- munity, etc. I LEE MCANERNEY, 207 Bear Drive, stated that the SAAMS group started as an advisory committee to IMS. Because of funding restraints faced by IMS and the university, the committee decided to form a non-profit corporation to explore other options. 202 ARR: Objection ~tariff on iron & steel PAGE 202 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 Sieminski $10,000 immediately public hearing. Schaefermeyer stated that this was entirely within the purview of the Council to direct the appropriation of the funds, including the appropriation of an initial $10,000. He suggested that the Council give direction to the administration as to how the funds should be administered. suggested that the city donate and go forward with the requested Meehan stated that he felt this issue could be postponed until August 27th, with a work session sched- uled for next week. He asked if there was a need for the $10,000 over the next two weeks. Hilton stated that he felt postponing for two weeks was a good idea. He stated that some members of the community had come to him with a concern about $100,000 being removed from the city treasury for this type of project. He stated that he had questions con- cerning Tracts 3 & 4 - What would be the cost of buying out these leases? A work session scheduled for August 22, 1990, at 7:00 p.m., with invitations to go to the Trade Board, Planning Commission, and Port Committee. SIMUTIS MOVED TO POSTPONE ACTION ON THE RESOLUTION UNTIL THE AUGUST 27, 1990, MEETING; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJEC- TION. XII. UNFINISHED BUSINESS: None XIII . NEW BUSINESS: A. Trade Board recommendation reqarding the ARR tariff on iron and steel. SIMUTIS MOVED TO DIRECT THE CLERK TO WRITE A LETTER TO THE ARR TO SUGGEST THAT IT ROLL BACK THE EXCES- SIVE AND UNREASONABLY HIGH WHARFAGE RATES THAT FORM A BARRIER TO USING THE PORT OF SEWARD~ THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that the word "condemned" in the memorandum was probably stronger than the Trade Board intended. They "strongly objected" to the tariff. Dunham stated that this might not be a good time to be too vocal regarding problems with the Rail- road. 203 PAGE 203 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 I THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS VOTE. B. Small Boat Harbor Expansion Status Report. Diener stated that his written report was fairly self-explanatory. He stated that there were four entities involved in the expansion project and all were in favor of the proposed plan. He stated that the next step was study of the wave barrier and preparation of the feasibility study. XIV. CITY MANAGER REPORTS: Murphy reported that the State Reapportionment Board would conduct a public hearing in Seward on August 23, beginning at 1:30 p.m. She encouraged the public to attend and testify. She also noted that absentee voting for the state primary election was being conducted in the Clerk's office through August 27th. Finally, she noted that filing for Council would close on August 15th at 5:00 p.m. I Schaefermeyer stated that Seward was represent- ed by Becky Baker in the softball throw at the ARCO Jesse Owens games. He congratulated her on her placing fourth at the national level. XV. COUNCIL DISCUSSION: NOLL thanked Bryan Lorton and Bryan wilcox for their letters thanking the State Troopers, the Volunteer Ambulance Corps and the Fire Department for their good work at Spring Creek Prison. He also congratulated the Chamber of Commerce for a fine start for the Salmon Derby. XVI. CITIZENS' DISCUSSION: MARGARET BRANSON, 500 Fourth Avenue, representing "Alaskans for Alaska's Railroad", spoke in opposition of Ballot Measure No.1. She stated that the ballot measure, if approved, would damage the railroad in many ways. She thanked the Council for passing Resolu- tion No. 90-087. I HERMAN LEIRER, Dairy Hill, stated that he had just learned that SLAC was putting a group home in a residential area. He objected to placement of the home in Dairy Hill without prior notification of residents of the neighborhood. He stated that he feared for the safety of the residents and their property. 204 '.~ ~ J ([.) 'Y,'-.,. " ;, ,- " ..<::~ ", ~y..J.. . .,~ i~') .....:.' ''''\ -,: . ~".r '\,' " .~ D~ . '..L ';" . . "' : 1 ....., c. ""'" ."',.: i~ ~,..' .' '" A' '. . .. t'~i' " *,1; l,,; "', > -S'" ...... ..~.. .,".!";) ".rJ ',' /. \-rA' .:. ,'"it: (,'0 r-. ..-<(y' ',?>;,.,t;.;.Jr D.",j , "/>'rr:c7T('(f1.-' PAGE 204 REGULAR MEETING - AUGUST 13, 1990 VOLUME 25 XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : Schaefermeyer stated that a memorandum had been prepared by a member of Arvidson's staff regarding the group home. He noted that the Courts viewed group homes as "single family residences", and the city was prohibit- ed from treating these homes any differently than any other single family dwelling. Be stated that he would distribute the memorandum to Council and to Mr. Leirer. XVIII. ADJOURNMENT: The meeting was adjourned at 10:50 p.m. ~~~ Mayor (City Seal) ------------------------------------------------------- PAGE 204 SPECIAL MEETING - AUGUST 22, 1990 VOLUME 25 CALL TO ORDER: 1. The August 22, 1990, special meeting of the Seward City Council was called to order at 7:02 p.m. by Vice Mayor Michael J. Meehan. II. OPENING CEREMONY: Councilmember Dunham led the pledge of alle- giance to the flag. III. ROLL CALL: Present were: Mayor Noll (arrived at 7:05 p.m.) and Councilmembers Bur- gess, Dunham, Hilton (arrived at 7:12 p.m.), Meehan and Sie- minski (Siroutis was absent) Present also: City Manager SChaefermeyer, Engineering and utilities Man- ager Diener, Assistant City Manager Yanez, Community Devel- opment Director Martin, Finance Director Gifford, Police Chief PAGE 205 SPECIAL MEETING - AUGUST 22, 1990 VOLUME 25 I Bencardino, Parks & Recreation Dept. Director Josey and City Clerk Murphy IV. APPROVAL OF SPECIAL MEETING AGENDA: BURGESS MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None. VI. SPECIAL ITEMS: A. Copies having been made available to the public, Meehan noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROV- ING A CONTRACT FOR PHASE II, STREET IMPROVEMENTS. I Schaefermeyer asked Diener to briefly review his memorandum and to outline those portions of the project recommended for approval at this time. NOTE: Mayor arrived at 7:05 p.m. Diener noted that the basic bid included improvements to Railway Avenue from Third to the Sewage Lift Station, with work to include paving and improving drainage. Also included in the basic bid was construc- tion of Cottonwood Avenue (to the new school) with completion scheduled before school starts. In addition, Government Hill Road was scheduled to be paved, with the exception of that portion scheduled to receive a new sewer line. DUNHAM MOVED TO APPROVE RESOLUTION NO. 90-096; THE MOTION WAS SECONDED BY MEEHAN. Burgess noted that he had done a bit of work for Summit in the past and asked if he should declare a conflict. NOLL RULED THAT HE SHOULD ABSTAIN. I Dunham asked if last year's bond issue included paving of Dairy Hill Road. Schaefermeyer stated that this was included in the bond, but was contingent upon having sufficient funds to complete all work necessary to make the road ready for paving. Diener stated that Summit would be coming back to Seward in the Spring, and 205 RESO/CON- /STREETS: Contract for Phase II - Street Imp. 206 ELEC.DEPT: Auth. negotiation of contract for design of T- Line PAGE 206 SPECIAL MEETING - AUGUST 22, 1990 VOLUME 25 if funds were available at that time, this paving could be added as a change order. Sieminski noted that the slope of the sidewalk on Jefferson Street was too steep. In addition, a drain was placed in the center of the walk, and metal stakes were left in the ground for 10 days. He stated that the city should receive better service. Diener agreed that there was a problem at that particular corner. He noted that the slope of the sidewalk and the drain were the fault of the engineer, not the contractor. ~: Hilton arrived at 7:12 p.m. Dunham noted that a couple of people had questioned the quality of the concrete which went into Phase I. Diener stated that the concrete used was a standard mix put out by METCO. Sieminski asked why a special meeting was called. Diener stated that bids were just opened on Friday, and he wished to get the contract going as soon as possible. Noll stated that he Sieminski's comments regarding contractor's past work. However, for the low bidder in this case. was sympathetic with the quality of the he felt obliged to vote THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FOUR "YES" VOTES, SIEMINSKI VOTING "NO" AND BURGESS ABSTAINING. B. Request for authorization to neqotiate a contract for design of the Lawing to Ft. RaYmond elec- trical transmission line. MEEHAN MOVED TO AUTHORIZE THE CITY MANAGER TO NEGOTIATE A DESIGN CONTRACT WITH DRYDEN & LARUE FOR DESIGN OF THE LAWING TO FORT RAYMOND ELECTRICAL TRANSMIS- SION LINE, WITH FINAL CONTRACT AND COST TO BE SUBMITTED TO THE COUNCIL FOR APPROVAL PRIOR TO SIGNING THE CON- TRACT~ THE MOTION WAS SECONDED BY HILTON. Schaefermeyer noted that two proposals were received in response to the city's RFP. He stated that he was requesting authority to negotiate a contract with Dryden & Larue. He noted that any contract negotiated would come back to the Council for approval. Meehan asked what criteria were used to rate the proposals. Diener stated that Dryden & Larue had a long tenure in Alaska and had worked for many local governments in the state, including the city of Seward. PAGE 207 SPECIAL MEETING - AUGUST 22, 1990 VOLUME 25 I The city had experienced no claims or operational problems with any of these projects. Diener stated that the other firm had just organized in 1989 and had done very little work in Alaska. Meehan asked what the Engineer's estimate was for this portion of the project. Diener noted that this was a $9.5 Million project, with $400-500,000 estimated for engineering fees. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. C. Request for authorization to negotiate an agreement with the 9referred architect for desiqn of a new medical clinic. with award of agreement subiect to fundinq and final approval by the City Council. MEEHAN MOVED TO AUTHORIZE THE CITY MANAGER TO OPEN NEGOTIATIONS WITH MAYNARD & PARTCH AND KUMIN & ASSOCIATES FOR DESIGN OF THE MEDICAL OFFICE/CLINIC BUILDING, WITH AWARD OF THE CONTRACT SUBJECT TO FUNDING AND COUNCIL APPROVAL; THE MOTION WAS SECONDED BY DUNHAM. I Noll stated that he did not feel there was any conflict with Hilton on this issue, and he ruled that Hilton would be allowed to debate and vote. Dunham stated that she would feel better if he did not partici- pate or vote on this matter. Noll reversed his ruling and stated that he would bow to the objections of Dunham. Schaefermeyer reported that six firms had responded to the city'S RFP for design of the proposed medical office/clinic building. Diener stated that a contract for design could not be finalized until funds were appropriated. He noted that a review panel had looked over all of the submitted proposals and had determined that both Maynard & Partch and Kumin & Associates were the top proposers. He therefore requested authorization to negotiate with these two firms to provide a contract for design of the medical clinic. He stated that both firms would be invited to Seward during the first week in September to meet with the Hospi tal Board. In the meantime, funding would be pursued. I In response to a question from Sieminski, Schaefermeyer stated that the city could proceed in one of two ways. Ei ther the city could appropriate the funds and award contracts before financing was finalized, or the city could wait until a complete financing package was obtained before awarding contracts. Sieminski stated that he would like to suggest that the architect be 207 SGH: Auth. to ne- gotiate contract for design of new medical clinic 208 WATER DEPT: Auth. to negotiate contract for construction of Water Well No. 5 PAGE 208 SPECIAL MEETING - AUGUST 22, 1990 VOLUME 25 retained to go forward with drawings at this time with payment to be made only after financing was completed. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH FIVE "YES" VOTES AND HILTON ABSTAINING. D. Request for authorization to neqotiate a contract with the low bidder to construct Water Well No. 5. Ft. Ravmond Well Field. MEEHAN MOVED TO AUTHORIZE THE CITY MANAGER TO NEGOTIATE A CONTRACT, OR CONTRACTS, WITH CONTRACTORS QUALIFIED TO PERFORM THE WORK NECESSARY TO CONSTRUCT WATER WELL NO.5; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that two bids were received in response to the city's RFP for construction of Water Well No. 5 in the Ft. Raymond Well Field. He noted that both bids exceeded the funds available to do the work. He stated that by letting several smaller con- tracts, the city could have the work performed within the budget for this project. He noted that any contracts in excess of $10,000 would come back to the Council for approval. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. VII. COUNCIL DISCUSSION: None VII I . CITIZENS' DISCUSSION: None IX. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None X. ADJOURNMENT: The meeting was adjourned at 7:40 p.m. ~~ W~ ~am C. No 1 Mayor (tit~ cS~cilM;.\ .;, <:> '" '. .....'f'..., '. c . ,.,' ~',' ~~~'';J) ,'..t: 0;: ~\ '.... :""l\f~"; " . .,"'-r_~;;_~? ty(l 17-:" ) 209 PAGE 209 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I I. CALL TO ORDER: The August 27, 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: Councilmember Hilton led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Hilton, Mee- han, Sieminski and Simutis I Present also: Ci ty Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Josey, Har- bormaster Singleton, Librarian Nicolas, Police Chief Bencar- dino and City Clerk Murphy IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE AUGUST 13, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY HILTON. Murphy requested the addition of a new Item "F" to the Consent Calendar - "Appointment of Wayne Carpenter to a vacancy on the Planning Commission." Schaefermeyer requested the addition of two resolutions to the regular meeting agenda - Resolution No. 90 100, confirming a 120- day lease with Chugach Alaska Corporation, and Resolution No. 90-101, awarding a contract for gravel extraction. Sieminski asked that Consent Calendar Item "A" (Attorney bills) be moved to the regular meeting agenda as New Business, Item "B". I THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. 210 RESO/STREETS: Renaming Airport Rd. to PORT RD. PORT COMM: Exten- ded for one year P&Z: W. Carpenter appointed PUBLIC HEARINGS: SAAMS Funding PAGE 210 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 VI. BOROUGH ASSEMBLY REPORT: Kenai peninsula Borough Assembly Member Sewall 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: HILTON MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. The following actions were taken: A. Moved to regular meeting agenda; B. Resolution No. 90-098, changing the name of Old Airport Road to Port Avenue, was approved; C. August 12, 1990, memorandum from Harbor- master Singleton reconunending that Council extend the Port Conunittee for one year, through October 31, 1991, was approved; D. August 22, 1990, memorandum from Murphy requesting authorization to extend the application process to fill a Port Conunittee vacancy was approved; E. Letter from George T. Sawyer regarding Bed & Breakfast regulations within the city of Seward was noted for information; and F. Wayne Carpenter was appointed to a vacancy on the Planning and Zoning Conunission created by the resignation of Jim Parrish. IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published regarding proposed Resolution No. 90-095, providing funding and a conunitment of city property for the development of the Alaska Marine Mammal Center, was noted. Noll asked the City Attorney if he should conflict on this matter since he (Noll) was president of the nonprofit Corporation, SAAMS. In response to a question from Arvidson, Noll stated that he did not draw a salary from SAAMS for his services on the Board. Noll stated that the matter of perception concerned him. Arvidson stated that he could not give advice based on perception; however there was no reason under the Code for him to abstain. Noll then asked the Council for an opinion. Meehan stated that he saw no reason for Noll to PAGE 211 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I abstain. Noll stated that he would set aside his voting right if any objection was expressed by the Council. Arvidson noted that it would be appropriate to have the Vice Mayor rule. Vice Mayor Hilton stated that, in his opinion, a conflict did not exist. The Public hearing was opened. A.J. PAUL, 611 Sixth Street, stated that he had presented to the Mayor a short memorandum outlining how SAAMS would utilize monies granted by the city. He stated that the initial request was for $100,000. Of this, $55,000 would be allocated for hiring an Executive Director for one year. $10,000 would go for travel - for SAAMS to visit other facilities and for scientists to visit Seward. $25,000 was allocated for design services. $10,000 was allocated for marketing and preparation of a brochure to use as a selling tool. No one else appeared in order to be heard, and the public hearing was closed. I B. Notice of public hearing as published as required by law regarding Comprehensive Plan Update was noted, and hearing was opened. posted and the Seward the public SANDRA WASSILIE, 105 Lowell Canyon Road, a former member of the Planning Commission and member of the Seward Schools Parent Advisory Committee complimented the city and the Planning Commission on the updated Plan. She noted the reference on Page 10 to using the old elementary school as a middle school and stated that one of the cornerstones of the middle school concept was linking the school to the community. She thanked the city for its continuing support of the schools, and she suggested that when the Plan is reviewed in 1995, that hearings be conducted at the schools to solicit student involvement and comments. Referring to Page 40, Wassilie stated that the PAC had long been concerned about providing a safe access to the city's schools. She suggested adding a comment addressing pedestrian routes to the schools. Wassilie stated that the plan was very readable and she once again complimented the city for a job well done. No one else appeared in order to be heard and the public hearing was closed. I x. PRESENTATIONS WITH PRIOR NOTICE: 211 PUBLIC HEARINGS: Compo Plan Update 212 CIT.DISCUSSION: D.Seavey - Iditarod Trail- blazers PAGE 212 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 A. DAN SEAVEY, Mile 1.1, Resurrection Road, representing Seward Iditarod Trailblazers as its presi- dent, presented some background information on the Iditarod Trail as it relates to Seward. He stated that in 1978, the U. S. Congress designated the Iditarod Trail as a national historic trail. BLM was directed to draw up a comprehensive management plan which was completed in 1981. The plan did not include any physical trail on the Kenai Peninsula. Seavey stated that he and Councilmember Meehan lobbied to have a physical trail from Seward to Girdwood added to the Plan and were successful in this effort. In 1983, the City Council and the KPB Assembly passed resolutions in support of the Trail. Later, both the city and the borough signed comprehensive management agreements with BLM to manage the trail. Seavey noted that a public meeting was con- ducted in May to receive comment on development of the physical trail in Seward. It was determined that the trail would be constructed in phases, with Phase I to be the first 1.2 miles of the trail from the Trailhead to the Boardwalk. He stated that the Trailblazers had surveyed the trail, researched grant funds and decided to push for construction of Phase I j~ediately because of extremely attractive materials quotes which had been received. Be urged the Council to consider immediate construction of the first 1.2 miles of trail. Seavey stated that the quote from summit Paving was about one- half what the city was paying for paving at this time. In addition, METCO had given the Trailblazers a good price for his D1 gravel. He noted that total cost of the project would be approximately $55,000, which was about one-half earlier quotes received by the city. He asked the Council to appoint someone in the city administration to oversee the project and to assure that the trail base was put in this FaIlor early Spring. In addition, he asked the Council to provide $55,000-65,000 for Phase I construction. Meehan asked how much was being requested from the city. Seavey stated that the Trailblazers had no assets; however, if the city agreed to fund this project, this would give the corporation impetus to carryon fund raising over the winter. In response to a question from Meehan, Schaefermeyer stated that the city had identified $100,000 to provide a gravel trail over the first one mile of the trail in 1992. Schaefermeyer stated that this inflated price was the result of regulations requiring payment of Davis Bacon wages for any city project in excess of $2,000. Burgess suggested that Council schedule a work session to discuss this issue. Noll stated that the Council could also appoint someone in the administration to work with Seavey to develop a plan to bring back to the Council. PAGE 213 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I Burgess stated that the portion of trail running from the Boardwalk to the schools was also a public safety issue, adding that the city should get behind this project. Sieminski stated that he agreed with Noll that Seavey should work with the administration to develop some ideas and recommendations for a solution to this issue. Schaefermeyer stated that he had met with Seavey earlier in the day. In addition, Josey and Martin had been meeting with the Trailblazers. He stated that he had told Seavey that he would like to work with Trailblazers if monies could be identified for the project. Schaefermeyer suggested that the city look towards revenue enhancements to provide the funds. Schaefermeyer stated that if the city became involved, Davis Bacon wages would have to be paid on the project, and this would raise the cost. In addition, as a city project and facility, the trail would have to be built to a certain standard. Meehan stated that the labor to put down the D1 could be donated, and the only paid labor would be for overlaying asphalt. Meehan further stated that the city should focus on this project and seek funding either from Juneau or by working with the Trailblazers to identify other funds. I Noll instructed the administration to continue to work with Seavey. DUANE HARP, 220 Bluefield Drive, speaking on behalf of the Trailblazers, thanked the Council for its support. He stated that if city would commit to funding the project, the group would have something to take to private sources seeking matching funds. He stated that he was very confident about the group's fund raising capabilities. B. ANDREW J. PATAPOFF, Tressler Road, noted that he was appealing the Hospital Board's denial of his claim for additional compensation for the Medical Campus Master Plan. He stated that several documents supporting his claim had been presented to the Council in its agenda Packet. He reviewed his letter of appeal. Burgess asked if it would be appropriate to ask questions now, or under New Business when this item came up for action. Noll asked Patapoff to stay until the action item came up for discussion and a vote. I C. WAYNE CARPENTER, 525 Fifth Avenue, Chamber of Commerce Executive Director, stated that he wished to discuss the future of the Seward Trolley. He reported that the Chamber and the city administration had been notified about one month ago that the Williams intended 213 CIT.DISCUSSION: Appeal of SGH denial of claim A.Patapoff CIT.DISCUSSION: W.Carpenter - Alaska Trolley 214 PAGE 214 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 to sell the business after this season. The Chamber was very concerned about the possibility of losing the trolley service, and the consensus seemed to be that everyone wanted to see the service continued. He stated that he was requesting conceptual approval from the Council for assistance in the purchase of the trolley. Carpenter stated that the trolley, when new, had cost $85,000. The current purchase price was set at $46,000, including radio equipment. Carpenter stated that he had commitments from 20+ individuals to pay $1,000 each over a four-year period to cover the purchase price. Based on this commitment from its membership, the Chamber wished to borrow the $46,000 purchase price from the city to be repaid with no interest over four years. In addition, the Chamber was requesting that the city provide mainte- nance and insurance for the vehicle. Carpenter stated that fuel was being donated by a local business, and the Chamber would staff and operate the vehicle as a public service during the summer. Any profits would go to the Chamber of Commerce. Simutis stated that the project was a great idea. She stated that the concept of a loan was a good one, but asked if the profits could be turned back to the city initially to cut the term of the loan. Carpenter stated that this might be possible, but the Chamber was in need of additional sources of revenue. Hilton applauded the Chamber's efforts to keep the vehicle in Seward. He stated, however, that the Chamber's request that the city maintain the vehicle would increase the city's liability. He asked if the Chamber would object to a profit sharing plan. Dunham stated that several business owners had contacted her to state that they would be participating in the purchase. She stated that, without the trolley, there would be an even greater distance between the Small Boat Harbor and downtown. In response to a question from Meehan, Carpen- ter stated that the trolley was purchased new in 1987. Meehan also asked if the Chamber had explored other options for obtaining insurance and financing for the vehicle. Burgess agreed that this was worth looking into, but stated that any profit should go into the maintenance of the vehicle. Noll thanked trolley owners Vivian and Chris williams for their service to the community over the past two years. PAGE 215 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 RECESS: The meeting was reces sed at 8 : SOp. m. and reconvened at 8:58 p.m. I XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: 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, COMMIT- TING CITY PROPERT,IES~ lWD . FUNDS TO THE SEWARD ASSOCIATION FOR THE AD- VANCEMENT OF MARINE SCIENCE FOR THE DEVELOPMENT OF THE PROPOSED ALASKA MARINE MAMMAL CENTER. I Murphy noted that there was a motion on the floor to approve the resolution. (Continued from August 13, 1990.) Burgess noted that he had just received the memorandum regarding another private sponsor for the Marine Center and asked for an explanation. I Gates stated that on Friday, the city and SAAMS had participated in a meeting in Anchorage with an attorney representing an unnamed individual who wished to put $200,000 into a fund for the construction and operation of the mammal center. The proposal included a request that the city transfer fee title of the lots identified for the mammal center. Gates stated that the proposer might be agreeable to a long term lease instead of a direct transfer of title to the property. In addition, the proposer had originally asked that the city forgive property taxes on the facility, but now under- stood that this would not be possible. The proposer had also indicated that he would only be willing to put forward the $200,000 if the city agreed to commit property for the mammal center. Finally, the proposer agreed to make his identity known after the city acted on his proposal. Gates suggested that SAAMS take the lead and make some recommendation to the Council regarding the proposal once the Board had a chance to fully review it. Burgess asked if SAAMS had reviewed the proposal and were ready to discuss it. Noll stated that ')15 .u.l RESO/SAAMS: Committing funds & property for proposed Alaska Marine Mammal Center 216 PAGE 216 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 the first meeting with the attorney was on Friday afternoon at 1:30 p.m., and the entire Board had not yet received copies of the written proposal. He stated that he had asked Gates to continue to work with the attorney in a positive manner. Burgess suggested that the city postpone action on the resolution until the SAAMS group could review the proposal. In response to a question from Sieminski, Gates stated that the $25,000 pledged by Dale Lindsey had not yet been donated. He explained that Lindsey's donation was contingent upon receipt of matching funds from other private sources within the community. Sieminski stated that the city should step forward with a commitment to provide the site of the otter center for the marine mammal center and make an immediate $10,000 gift to SAAMS . Simutis concurred with Sieminski. She ~uggested that the Council separate the land and money ~ssues. She stated that she would like to see the resolution amended to dedicate the property, contingent upon public hearing and completion of land use issues identified earlier by the administration. Meehan suggested that the city make a firm commitment of Tract 2 upon expiration of the Exxon Lease. MEEHAN MOVED TO AMEND THE RESOLUTION TO ADD A NEW SECTION 2 TO READ "WATERFRONT TRACT NO. 2 IS HEREBY COMMITTED FOR IMMEDIATE CONSIDERATION FOR DEVELOPMENT OF THE ALASKA MARINE MAMMAL CENTER SUBJECT TO THE NECESSARY PROVISIONS OF THE CITY CODE & OTHER RESTRICTIONS~" THE MOTION WAS SECONDED BY HILTON. Dunham stated that she would still favor committing some funding to SAAMS. Burgess stated that Section one was fine, but Section 2 (funding) should be changed from $100,000 to $10,000 contingent upon Council approval of expenditures. Meehan stated that the Code gives the City Manager the authority to expend up to certain amounts without prior approval of the Council. He stated that he would be happy with that scenario. Burgess stated that this situation differed from the normal and should not be handled in a routine manner. MEEHAN WITHDREW HIS ORIGINAL MOTION TO AMEND. MEEHAN MOVED TO RENUMBER SECTIONS 2, 3, AND 4 AND ADD A NEW SECTION 2 TO READ "THAT PORTION OF WATER- FRONT TRACT NO. 2 CURRENTLY UNDER LEASE TO EXXON AS AN ANIMAL RESCUE CENTER IS FURTHER IDENTIFIED FOR IMMEDIATE 217 PAGE 217 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I CONSIDERATION AND DEVELOPMENT FOR THE ALASKA MARINE MAMMAL CENTER SUBJECT TO CODE RESTRICTIONS AND LEASE OBLIGATIONS; THE MOTION WAS SECONDED BY HILTON AND CARRIED WITHOUT OBJECTION. A. J. PAUL stated that Meehan's motion was right on target, adding that the key to open the door for SAAMS' fund-raising effort was commitment of the proper- ty. LEE MCANERNEY, 207 Bear Drive, stated that she was leery of accepting the unsolicited proposal received on Friday, and she suggested that SAAMS and the city not rush into anything. She also stated that she was not sure that the SAAMS concept and a private enterprise concept would mesh. Noll stated that he was not surprised to get this proposal. He stated that the concept was very "hot" and would generate proposals of other kinds. Burgess stated that Lindsey's offer had not been made a matter of record. Noll stated that Dale Lindsey had offered a $25,000 donation, subject to receipt of matching donations from the private sector. I BURGESS MOVED TO DELETE SECTIONS THREE AND FOUR FROM THE RESOLUTION; THE MOTION WAS SECONDED BY SIMUTIS. Meehan stated that he realized funds were difficult to come by, but this was a good project and worthy of city support. He stated that he would support some level of funding, at the very least $10,000. He stated that SAAMS needed something to work with. He added that he could not support the amendment. Dunham concurred. BURGESS WITHDREW HIS AMENDMENT; CONCURRED. SIMUTIS BURGESS MOVED TO AMEND SECTION 2 BY CHANGING $100,000 TO $10,000; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. Burgess asked how the Council felt about making funding subject to Council approval. Hilton stated that new Section 4 spoke to that. Schaefermeyer stated that this was the purpose of the "and City Council directive" portion of Section 4. He stated that he would inform the Council of any intended expenditures. I CONSENT. RESOLUTION NO. 90-095 WAS APPROVED BY UNANIMOUS 218 RESO/SBH, Approp. funds for wave, model study necessary for SBH expansion RESO/COMP.PLAN: Recommending KPB Assembly approval PAGE 218 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 2. 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, PROVID- ING MATCHING FUNDS FOR MODEL TESTING OF A WAVE BARRIER SUITABLE FOR THE SEWARD SMALL BOAT HARBOR. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-097; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this resolution would provide city participation in a wave barrier study to determine the feasibility of the proposed semipermeable wave barrier concept. The Alaska Science and Technology Foundation had agreed to provide $100,000 for the study, with the remainder of the cost coming from the city of Seward; the Alaska Marine Highway System; the University of Alaska; and peratrovich, Nottingham and Drage. Schaefermeyer noted that the University had already committed its $25,000 share, and he recommended Council approval of the resolution providing the city's share. Simutis asked if the funds were budgeted in any other account. Schaefermeyer stated that this was not a budget item, but would come from the Harbor Fund-Fund Balance. Burgess stated that this was the beginning of what could be a very good thing and recommended approval. Meehan stated that the Port Advisory Committee supported this project. THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 3 . 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, RECOM- MENDING KENAI PENINSULA BOROUGH ASSEMBLY APPROVAL OF THE SEWARD COMPREHENSIVE PLAN UPDATE. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-099; THE MOTION WAS SECONDED BY BURGESS. BURGESS MOVED TO AMEND PAGE 40 OF THE PLAN, PEDESTRIAN SYSTEMS, PARAGRAPH (l)(A), TO READ "CONSTRUCT SIDEWALKS ON A PRIORITY BASIS, CONSIDERING MAJOR PEDES PAGE 219 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I TRIAN ROUTES, WITH EMPHASIS ON THOSE USED BY THE ELDERLY AND CHILDREN TRAVELLING TO AND FROM SCHOOL." THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. THE RESOLUTION WAS APPROVED AS AMENDED BY UNANIMOUS CONSENT. 4. Copies having been made available to the public, Noll noted by titl~ only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONFIRM- ING A 120-DAY LEASE AGREEMENT WITH CHUGACH ALASKA CORPORATION FOR THE STORAGE OF A MODULAR LOGGING CAMP. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-100; THE MOTION WAS SECONDED BY HILTON. I Schaefermeyer stated that this lease was entered into under Code provisions allowing the City Manager to execute a short term lease provided it is brought to the Council for ratification/confirmation at the first meeting following execution of the lease. He noted that this lease, due to expire in just a few days, had only recently been signed by the lessee. Schaefer- meyer stated that the ci ty was currently negotiating another lease of the subject property. However, one requirement imposed by the city was that Chugach Alaska Corporation must bring its financial obligations to the city current before the lease could go forward. Schaef- ermeyer stated that the signed lease agreement would be before Council for public hearing and a vote on September 10. THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 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- ING A CONTRACT FOR THE EXCAVATION AND PLACEMENT OF GRAVEL AT THE SEWARD MARINE INDUSTRIAL CENTER. HILTON MOVED TO APPROVE RESOLUTION NO. 90-101; THE MOTION WAS SECONDED BY MEEHAN. I Schaefermeyer noted that this project was part of a larger project to provide improvements to the North 219 RESO/RE- /LEASE: CAC 120-day lease RESO/SMIC/CON- Contract for ex- . cavation of gravel] 220 ~ Patapoff appeal - Referred to administration for meetings wi both parties in an attempt to work out an equitable settlement PAGE 220 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 Dock at SMIC and the boat storage area which was a part of the travel lift operation. Funding would come from Ports and Harbors money the city had received for the project. He noted that METCO had submitted the low bid, and he hoped METCO would be able to complete the project before freeze-up. He added that the Corps of Engineers and Fish and Game Permits had been received. Diener stated that the surface of the North Dock was currently one foot lower than grade. This project would bring the top of the dock to design grade and would widen it somewhat. The balance of the material would be used to construct roads to provide access into the boat storage area. CONSENT. THE RESOLUTION WAS APPROVED BY UNANIMOUS XII. XIII. UNFINISHED BUSINESS: None NEW BUSINESS: A. PataDoff ApDeal. Burgess requested that randum be read into the record. of the memorandum: Schaefermeyer's memo- Following is the text The Patapoff Appeal to City Council for a claim of $5,376.25 for additional professional services presents a complicated issue with various angles to be considered. On the basis of pure contract language, it is the Contractor who is responsible for seeking additional payment in writing prior to performing such services. As stated in "Ap- pendix B/General Conditions, Article VI, Changes", Changes in the scope of work or of services may only be made by written amendment. The Contractor shall not perform any extra services prior to receiving a fully executed copy of an amendment and a Notice to Pro- ceed. If at any time the City through its authorized representatives, either verbally or in writing, requests or issues instructions for extra ser- vices or otherwise directs actions which conflict with any provisions 221 PAGE 221 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I of the Agreement, the Contractor shall, within 10 days of receipt and prior to pursuing such instructions, notify the City in writing, and to the extent possible, describe the scope and estimated cost of any extra services. Unless so notified by the Contractor, the City may assume such instructions have not changed any provisions of this Agreement nor require additional compensation. No additional pay- ments shall be made to the Contrac- tor without such notice. I Though this language appears to place the fault of notification for additional compensa- tion squarely on the claimant's shoulders, SGH itself violated the Agreement by not fulfill- ing the requirement of the first sentence, i.e. "Changes in the scope of work...may only by made by written amendment". Upon review of the appeal, there is no question that the scope of work changed on several occasions, yet, while no written authorization was pro- vided by SGH nor requested by the Contractor, it was apparent to both parties that addition- al work was being performed and ordered with- out written authorizations and requests for compensation. Both parties were negligent in terms of fulfilling the language of the Agree- ment. I The claimant has a valid point in pre- senting "Invoice No.1" as some written proof that the SGH was notified that the hours of service were already exceeded. As stated on the invoice "...I have already expended 33-1/2 hrs. . . ", "... the work is taking longer than planned." The Contract Administrator claims that he was never notified of the additional hours being expended by the Contractor, yet, though the invoice of February 14, 1990 states that the contracted hours were used up[, directives to modify the plans were being given as late as May 11, 1990. Though one would assume that the Contractor would stop work at some point and verify additional compensation, one could safely assume that at some point SGH would cons ider what, if any, extra hours were being expended on the project in light of the various changes in orders and the remarks made on Invoice No.1. 222 PAGE 222 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 There is reason to question whether the claimant was given his due process of appeal. Though the Contractor provided an invoice for additional compensation on May 19, 1990, (Invoice No.3) he received no word of any decision on his claim until the day after the claim was denied by the Seward General Hospi- tal Board at its June 21, 1990 meeting. The claimant states that he was not notified of the claim presentation to the SGH Board nor was he invited to attend the meeting to pres- ent his case. Though he was invited to pres- ent his case to the Board at the July 17, 1990 meeting, there is a question whether he was granted a fair opportunity to present his claim appropriately because of constant inter- ruption by the Contract Administrator who reminded the Board that the claim had already been settled and that the claimant's story was not accurate. A final point to consider is that, even with the factors listed above, the Hospital may have received benefit for the additional work performed by the Contractor. If in fact the SGH did receive benefit, it is possible an arbitrator may find in favor of the claimant for some or all of his claim. Because of the items of consideration listed above, the Administration wishes to list the available options apparent to the Ci ty Council in deciding in deciding this appeal. Naturally, other options may be available and Administration welcomes any such options to be presented to the City Council for consideration. OPTION A. Deny the appeal and refuse the claim for the requested additional compensa- tion. OPTION B. Uphold the appeal thereby instructing Seward General Hospital to provide additional compensation to the Contractor in the amount of $5,376.25. it is recommended that funds be taken from the Hospital Budget. OPTION C. Remand the appeal back to the Seward General Hospital Board for a proDer hearing with the claimant being allowed an opportunity to be heard without interruption on contrary display. 223 PAGE 223 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I OPTION D. Instruct the City Administra- tion to assemble the involved parties together to thoroughly investigate the matter and to recommend a settlement of this dispute to the City Council at the September 10, 1990, meet- ing for Council consideration and approval/ disapproval. RECOMMENDATION: Administration wishes to recommend Option D as a proper course of action at this time. SIMUTIS MOVED TO APPROVE OPTION D; THE MOTION WAS SECONDED BY DUNHAM. KEITH CAMPBELL, SGH Administrator, stated that in light of the motion, he would make his presentation at a later meeting. I JOHN BURCKHARDT, Woodland Hills Estates, Chairman of the Hospital Board, noted that all parties involved were friends and he recommended Council approval of Option D so that this issue could be settled amicably. Burgess asked who would be involved with the negotiations and when they would take place. Schaefer- meyer stated that he and Yanez would be the administra- tive persons involved. He added that he planned to bring this back to the Council on September 10th. Noll stated that the Council would take action at that time. Burgess stated that if Patapoff was happy with Option D, he would concur. However, he stated that he would be in favor of Option B or a portion thereof. He requested that the Council look at all of the extra time expended, not just the $5,000 requested. Dunham asked why he was asking only for $5,000 rather than the $16,000 he now claimed was expended. Patapoff stated that the claim was filed in May. Other hours were expended after that date. He stated that architects sometimes don't receive compensation for all of the time they expend on some projects. He stated that he was now having second thoughts about his first claim of $5,000. I Meehan said that after reviewing what was presented to the Council and the Hospital Board minutes, he felt Patapoff should receive some additional compen- sation. He stated that he supported Option D. Noll asked Arvidson if Hilton should abstain. Arvidson stated that there was a good chance that there was a conflict since any monies paid would come from the 224 PAGE 224 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 hospital budget. NOLL RULED THAT HILTON SHOULD ABSTAIN FROM DISCUSSION AND VOTING. Campbell suggested that Burgess might have a major conflict. BURGESS stated that he had no direct or in- direct financial interest in the outcome of this appeal. He stated that he had provided public records to Patapoff for his use in preparing the report. He stated that he was not paid nor did he expect to be paid for this service. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH SIX "YES" VOTES AND HILTON ABSTAINING. C.ATTY: B. Invoices for Legal Services. Sieminski stated that about one year ago the Council had discussed cutting attorney fees, but this had not occurred. He suggested that only the city manager be allowed to call the attorney concerning contracts. Meehan read the line items from the cover sheet. He stated that when the city was in movement, legal expenses would occur. He asked Arvidson to explain what the city received for the $8,000 per month "general government work" . Arvidson noted that last month this included review of HB 405 (Public Records), code supplementation, attending two Council meetings; drafting the Carr- Gottstein appeal on a zoning variance; review of upcoming agendas; personnel statute changes; researched issue of placing mooring buoys in Resurrection Bay and charge for using them; Bankruptcy claim - Commonwealth Pacific; Nelbro Lease; Harbor Tariff revisions; Carl Berger request for change in B&B ordinance; Comp time policies of the city; and police drug forfeiture. He stated that the entries would change month to month. He noted that the Bradley Lake charge was reimbursable, and the SGH charge reflected work on the Brim Contract. Arvidson also noted that the Seward Intertie charge would be reimbursed from project funds. In addition, both the Pac Tel charge and the Oil Spill charge would be reimbursed. He noted that the Spring Creek claim was settled without cost; however it cost a considerable amount to get into court quickly. Dunham stated that the Code required that all resolutions and ordinances be reviewed by the Attorney. Arvidson noted that he approved all as to form; however, the city administration drafted most resolutions. 225 PAGE 225 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I In response to a question from Burgess, Schae- fermeyer stated that approximately $13,000 of the $34,807 invoice would be reimbursed to the City. Burgess asked where the line was drawn between General Government work and other charges. Arvidson stated that, in most cases, if the city was sued, this would be outside the $8,000 General Government Work charge. In addition, major projects were billed outside the $8,000. Arvidson noted that nothing was billed outside the $8,000 unless agreed to by Schaefermeyer. Hilton asked why review of the Brim Contract was not included under General Government work. Arvidson stated that this was a one-shot deal and took much more time than had been anticipated. Hilton asked if a staff attorney would deal with grievance problems and contract review. Arvidson stated that this would not necessarily be the case. Hilton stated that the city should review whether an in house attorney was needed. I Dunham stated that she had been asked why the city had the firm that wrote a contract litigate it. Simutis complimented Arvidson on the timeliness of the bill. She also noted that the billing was audited by the city manager, and at times the bill was changed. Simutis stated that she would not recommend restricting access to the attorney as suggested by Sieminski. She concurred with Hilton that this issue needed to be studied and put to rest. Burgess stated that Arvidson's billings had been revised so that the city now received a more detailed record. He stated that if the city could get an in house attorney and save money, he would favor it. DUNHAM MOVED TO APPROVE PAYMENT OF THE ATTORNEY BILLS; THE MOTION WAS SECONDED BY SIMUTIS AND APPROVED BY UNANIMOUS CONSENT. Hilton suggested that the administration be instructed to research this concept and come back to the Council with a recommendation on how to proceed in determining if an in house attorney was needed. Siemin- ski asked that the Clerk be asked to put this together, not the manager. Meehan asked that the Clerk also contact other cities for total legal expenses. Murphy was instructed to present her report at the September 24, 1990, meeting. I XIV. CITY MANAGER REPORTS: 226 PAGE 226 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 Schaefermeyer advised the Council that the city was advertising the 250 ton travel lift in several publications. He stated that approximately one dozen lift operations had been performed, and several private enter- prises had participated in the city's promotional effort. Murphy reminded everyone to vote in the August 28th primary election. XV. COUNCIL DISCUSSION: DUNHAM complimented Carpenter and the Chamber of Commerce on the Derby. She also noted that the State Reapportionment Board had met in Seward last week, and stated she was disappointed by the lack of community participation. She stated that she was the only partici- pant from Seward. BURGESS suggested that Schaefermeyer remind the Council when something important for Council to attend was coming up. MEEHAN asked if the street Bond stated that paving of Second Avenue would end at Jefferson. Schaef- ermeyer stated that there was no legal requirement that the city pave from Jefferson to the end of Second Avenue. He stated that with the available funds, the administra- tion felt it important to pave only the worst portion of the roadway. SIEMINSKI requested a report from SAAMS listing donations and progress made. SIMUTIS stated that the overall impression given regarding the proposal received for the mammal center may have been negative. However, that was not her intent and she did not mean to discourage the proposer in any way. She stated that there were a lot of good, viable projects out there, and she wanted to be protec- tive of the city's limited ability to fund them. NOLL thanked Richard Jones, Keith Campbell and the Boards and Staffs of Seward General Hospital and Wesleyan for putting together the reception for the Alaska State Hospital and Nursing Homes Association last week. XVI. CITIZENS' DISCUSSION: HERMAN LElRER, Dairy Hill Road, stated that he would like to see the name of Government Road changed. He stated that it was originally platted as Government Road, but later was called Chamberlain Road. He noted that Chamberlain settled in Seward in 1903, delivering 227 PAGE 227 REGULAR MEETING - AUGUST 27, 1990 VOLUME 25 I mail with dog sleds. He stated that Chamberlain was a member of the Council, was Mayor and was a State Senator. JOHN BURCKHARDT, Woodland Hills Estates, reported that the Hospital Board's search committee would be interviewing five applicants for the hospital ad- ministrator's position. XVI 1. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : BURGESS encouraged Leirer to get together with the City Librarian to record his oral history of Seward. XVIII. ADJOURNMENT: The meeting was adjourned at 11:00 p.m. I ~~ Mayor . ~fCity Seat" ~j "'"'t~'!'I', 't" /,' . s~\ ~. '" J,. ,'.' ~c}:~'/ -...~,.J..{-eF+'-~:"----------------------------------------- PAGE>~~GULAR MEETING _ SEPTEMBER 10, 1990 VOLUME 25 1. CALL TO ORDER: The September 10, 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: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: I Present were: Mayor Noll and Councilmembers Burgess, Dunham, Sieminski and Simutis ( Hil ton and Meehan were excused) 228 CIT.DISCUSSION: T.Moffatt - Library Assoc. Meeting PAGE 228 REGULAR MEETING - SEPTEMBER 10, 1990 VOLUME 25 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 Direc- tor Gifford, Parks and Recre- ation Director Josey, Harbor- master Singleton, Librarian Nicolas, Police Chief Bencar- dino and City Clerk Murphy SPECIAL ITEM: Noll read proclamations designating September 10, 1990, as Tony Deer and Jesse Osborn Appreciation Day. IV. APPROVAL OF MINUTES: able. The minutes of the last meeting were unavail- V. APPROVAL OF REGULAR MEETING AGENDA: SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer requested the deletion of the public hearing on the proposed Chugach Lease and the resolution (90-105) approving the new Boat Harbor Tariff. He also requested the addition of a new agenda item XI(C)(3) - Resolution No. 90-106, awarding contracts for the construction of a new water well in the Ft. Raymond Well Field. Burgess requested that Item C, Consent Calendar, be placed on the regular agenda as item "B", New Business. THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on the September 4th Assembly meeting. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: TIM MOFFATT, Exit Glacier Road, reminded the Council and the public that the Seward Community Library PAGE 229 REGULAR MEETING - SEPTEMBER 10 1990 VOLUME 25 I Association would be celebrating its 60th anniversary of service to the community. He stated that the Association would hold a meeting and reception on Monday, September 17th, at 6:00 p.m., and he invited everyone to join the Friends of the Library and attend the meeting. VIII. APPROVAL OF CONSENT CALENDAR: SIMUTIS MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: A. contract for approved; Resolution No. 90-102, approving a vehicle towing and impound services, was B. Resolution No. 90-103, authorizing the destruction of certain public records, was approved; C. Moved to regular meeting agenda; D. neering and information; Project Status Report as filed by Engi- Utilities Manager Diener was noted for I E. Request for encroachment onto property located at USS 703, Marathon Addition, as by Lloyd Whitethorn was approved; and F. Taxable Sales Report for the second quarter 1990, as filed by Finance Director Gifford, was noted for information. city filed IX. PUBLIC HEARINGS: A. Chugach Lease public hearing was canceled. X. PRESENTATIONS WITH PRIOR NOTICE: None XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: C. Resolutions: I 1. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: 229 REso/pOLICE DEPT: Impound/towing contract approved RESo/RECORDS RE- TENTION: Authoriz- ing destruction of public records ENCROACHMENTS: Whitethorn 230 REso/FLOOD CONTROL: Appropriating funds for rehabilitation of Lowell Tunnel PAGE 230 REGULAR MEETING - SEPTEMBER 10, 1990 VOLUME 25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPRO- PRIATING FUNDS TO FINANCE A PORTION OF THE LOCAL SHARE OF THE COST TO REHABILITATE THE LOWELL CREEK TUNNEL AND REQUESTING THE STATE OF ALASKA TO FUND THE BALANCE. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-104; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer stated that the city had been presented with a proposal from the Corps of Engineers in which the Corps proposed to contract repair work for the tunnel necessitated by flooding in 1989. The estimated cost of the work was $660,304. The Civil Works Division of the Corps had determined that one-half of the cost must be borne by local contribution. The Alaska Division of Emergency Services had indicated that if the city committed 15% of the required local share, the Division would seek approval of funding the balance of the local share from the governor's discretionary funds. This resolution would appropriate $54,202 from the General Fund-Fund Balance (15% of local match required by the Corps) and further requested that the Governor appropri- ate disaster funds to allow the project to go forward. In response to a question from Sieminski, Schaefermeyer stated that no funds had been budgeted for tunnel maintenance. simutis asked to what extent the tunnel was to be prepared. Schaefermeyer stated that this would repair damage resulting from the 1989 flood. Diener stated that the project should amount to a good fix this time. Last time, there were not sufficient funds to do the entire job. In addition, the 1989 flood caused extensive wear to the tunnel. He stated that the work was necessary and would require diversion of the creek down Jefferson Street through the storm drain system. Dunham stated that anything that could be done to make the tunnel safer should be done. Burgess added that the city really had no choice but to go forward with the project. Diener stated that this 15% was the result of discussions between the city and the Alaska Division of Emergency Services and was not guaranteed. He added that there was also a study project on going to determine if there were any other alternatives to the tunnel. THE QUESTION WAS CALLED, AND THE RESOLUTION CARRIED WITHOUT OBJECTION. PAGE 231 REGULAR MEETING - SEPTEMBER 10 1990 VOLUME 25 I 2. Propcsed Resolution No. 90-105 was deleted from the Agenda. 3. 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, AWARDING CONTRACTS FOR CONSTRUCTION OF A NEW CITY WELL NO. 5 IN THE FORT RAYMOND WELL FIELD. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-106; THE MOTION WAS SECONDED BY BURGESS. I Schaefermeyer stated that in June, the Council had budgeted $90,000 for this project. However, the bids received were all in excess of that amount. On August 27th, the Council authorized the administration to negotiate with various contractors to bring down the cost. This had been done, and now approval was sought to appropriate additional funds and to award the contracts to the various contractors to construct the project this fall. He stated that the project was needed. Sieminski asked why this had to go forward at this time since the canneries would not need the extra water until spring. Schaefermeyer stated that the Council had been kept informed as to the problems with the bids. He added that he felt the project was overdue and was best done before the snow flies. He reminded Council that the canneries would begin operation in early spring when it might not be feasible to drill the well. Dunham stated that she intended to vote for the resolution, but she preferred that items not be put before the Council at the last minute. In response to a question from Noll, Diener stated that the bids were "short time" bids put together to take advantage of the weather we now have. He stated that he did not know if the bids would hold until Spring. Noll noted that the taxable sales report indicated that the city had received about $70,000 in excess sales tax over the first two quarters of the year. THE QUESTION WAS CALLED, AND THE RESOLUTION CARRIED WITH FOUR YES VOTES AND SIEMINSKI VOTING NO. I XII. UNFINISHED BUSINESS: 231 REsO/cON- IWATER ~ Awarding contracts for Water Well lIS 'onstruction 232 ~ Patapoff Settlement approved PAGE 232 REGULAR MEETING - SEPTEMBER 10, 1990 VOLUME 25 A. PataDoff Appeal. Schaefermeyer noted that, at the request of the Council, he had met with Patapoff and Campbell and had attempted to negotiate a settlement of the claim. However, Campbell had stated that he could accept paying no more than one-half the original claim, and Patapoff now wished to receive more than his original claim. Schaefermeyer recommended that the Council approve the original claim amount of $5,376.25. SIMUTIS MOVED TO APPROVE THE CITY'S RECOMMENDA- TION FOR SETTLING THE CLAIM IN FAVOR OF MR. PATAPOFF IN THE AMOUNT OF $5,376.25; THE MOTION WAS SECONDED BY DUNHAM. Dunham stated that at this point the matter seemed too complicated to deal with without a work session or further thought. She stated that, because of the addition of new information (a memorandum from SGH Administrator Keith Campbell), she was reluctant to act at this time. Sieminski stated that the issue was between the hospital and Patapoff and should be settled there, not at Council. Noll noted that the Council was involved because Patapoff was following the normal appeal process. Simutis stated that the Council had charged the administration with coming back with a recommendation, and the Council should support Schaefermeyer's recommen- dation. She stated that the administration had made a good effort at coming to a reasonable solution. She added that the parties would probably never come to an agreement, and continuing to discuss and weigh the issue would probably not bring them to a settlement. Simutis said that the last thing she wanted to do was to involve attorneys in this issue. Burgess stated that this issue had bothered him for some time, and, in his opinion, Patapoff had more than a reasonable claim. He stated that he had done work for the city for years and had never had a problem. He said that Patapoff was under contract to do a job, he was asked to do more and he did it. In February, he let the hospital know that he had exceeded the 30 hours antici- pated to complete the project. Also, according to his contract, he was supposed to have been provided with all of the information he would need to create the campus plan, but he was not. Therefore, he (Burgess) had provided some information about the proposed site to Patapoff. BURGESS MOVED TO AMEND THE MOTION TO CHANGE THE CLAIM AMOUNT TO COVER 126 HOURS, PLUS INTEREST FOR JUNE, I I I PAGE 233 REGULAR MEETING - SEPTEMBER 10 1990 VOLUME 25 JULY AND AUGUST, FOR A TOTAL OF $11,243.66; THE MOTION DIED FOR LACK OF A SECOND. In response to a question for clarification, Schaefermeyer stated that the original claim was for $5,376.25. Campbell stated that he could only consider paying one-half that amount. Dunham stated that she did not feel she could vote on this issue at this meeting. In response to a question from Sieminski, Schaefermeyer stated that approval of the motion would give the city the authority to settle the claim if Patapoff would agree to sign a settlement agreement. However, nothing would preclude Patapoff from refusing to settle for this amount and taking his claim to Superior Court. Dunham stated that there was a unique situation with the Hospital Board in that this Board had more authority to act than other Boards. In addition, the new information provided had been given to the Council without enough time to review. Noll stated that he appreciated Dunham's comments. He stated that the administration was proper in its analysis of the issue, and he agreed with Simutis that to touch on this further would result in the invol- vement of the city's attorneys which would eventually cost the city much more that the $5,376.25 proposed. He urged Council support of the motion. THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS VOTE. B. oDerations. Request for city sU9port of trolley SIMUTIS MOVED TO OFFER THE CITY'S SUPPORT IN THE AMOUNT OF $2,000 TO GO TOWARDS THE PURCHASE OF THE TROLLEY; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that his recommendation was that the city not enter into a loan with the Chamber or assume insurance coverage or maintenance of the vehicle. He further recommended that the Chamber seek financing from one of the local banks and maintenance from one of its members. WAYNE CARPENTER, 325 Fifth Avenue, Director of the Chamber of Commerce, updated the Council with some new information. He stated that the Chamber had a tentative commitment for financing from a financial 233 CHABMER OF COMMERCE TROLLEY: Approp. $2,000 towards purchase of trollf 234 PAGE 234 REGULAR MEETING - SEPTEMBER 10, 1990 VOLUME 25 institution. In addition, he had researched maintenance (estimated labor, other cost & insurance - $7,500/annual- ly). He stated that this modest effort on the part of the Chamber to provide public transportation for the com- munity in the summer deserved some support from the city. He asked that Council at least consider a modest per annum support for the operation of the trolley. In response to a question from Simutis, Carpenter stated that the 1990 projected profit (if the city provided maintenance/insurance costs) was approxi- mately $15,000. Dunham asked what the life expectancy of the bus was. Carpenter stated that a portion of the $15,000 annual profit would be put aside to replace the bus at some point. Noll stated that any annual participation by the city would have to be discussed each year at budget time. Dunham stated that she felt this transportation link was needed and the chamber's efforts to provide it was to be applauded. THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS VOTE. XIII. NEW BUSINESS: COM. HOSPITAL BOARD: R. Boyd appointed A. Community Hospital Board ADDointment. Richard Boyd was appointed to the Community Hospital Board vacancy by Mayor Noll. There was no objection from Council. Noll noted that the Clerk had advertised three upcoming vacancies to the public, with applications closing on August 31st, and had received three applica- tions prior to the deadline. The President of the Hospital Board had approached the Mayor and asked that the Board be allowed to submit other candidates for Council consideration at the Oct. 8th meeting. Dunham objected, stating that other Boards did not have this privilege (to recommend appointments). JOHN BURCKHARDT, Woodland Hills Estates, President of the Hospital Board, stated that in the past, the Association had been given the opportunity to meet in October and come forward with nominations to present to the Council for consideration. PAGE 235 REGULAR MEETING - SEPTEMBER 10 1990 VOLUME 25 I Dunham stated that if the application process was to be re-opened, it should be re-opened to the general public. Noll suggested that the public applications remain closed while giving the Hospital Association the opportunity to submit further applications if they chose. Dunham objected. She stated that the ordinance govern- ing Hospital Board appointments had been amended by the Council in an effort to minimize the Association's involvement in the selection process and to treat Hospital Board appointments in the same manner as appointments to other boards and commissions. The Clerk was instructed to schedule the appointments on the October 8th, 1990, meeting. B. Request for authorization to expend $52.00 from the SAAMS approDriation to cover air fare for Dan Costa to attend the Julv 25th Dublic meeting. SIMUTIS MOVED FOR APPROVAL OF THE $52.00 EXPENDITURE ON BEHALF OF SAAMS; THE MOTION WAS SECONDED BY DUNHAM. I Burgess asked why the city was paying for something that had occurred prior to the appropriation. Schaefermeyer stated that this was an appropriate item to be considered for funding from the SAAMS fund. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. XIV. CITY MANAGER REPORTS: SCHAEFERMEYER stated that he had provided a letter to Senator Kerttula for his use on Saturday at the Legislative Budget & Audit meeting to consider additional funding for replacement services for the Tustumena. This would allow replacement cargo and limited passenger service from October through December and April through June, with no service scheduled for January through March. He stated that he had also communicated the city's concern regarding the elimination of Class 3 road funds to Kerttula, and the Senator had indicated that he would argue hard and forcefully for those funds. Kerttula stated that if only a bare quorum was present at the meeting, any member could veto any action of the committee. I XV. COUNCIL DISCUSSION: 235 SAAMS: Auth. to expend funds for air fare /D.Costa 236 PAGE 236 REGULAR MEETING - SEPTEMBER 10, 1990 VOLUME 25 BURGESS asked if Hospital employees were city employees. He stated that at one time this was deemed to be not the case. However, the City Code seemed to imply that this was the case. He asked if changes in the City Code now meant that Hospital employees could not serve on the City Council. Schaefermeyer noted that a hospital employee could not serve on the hospital board since that board determines the terms and conditions of the hospital employee's employment. However, the Council does not determine terms and conditions of employment for the hospital. Therefore, a hospital employee would not be precluded from serving on the City Council. Burgess stated that there had been several changes in the city's relationship with the hospital over the past four years and he asked if the attorney's opinion of 1986 still held. Simutis stated that there really had not been many changes in the last four years. She requested that Arvidson be asked to give an updated opinion within his $8,000 general government work contract. The Attorney was asked to provide an updated opinion before the next meeting. In response to a question from Sieminski, Schaefermeyer stated that on last Tuesday, during the course of a Superior Court Case, Judge Hanson had directed the public works director to barricade Fifth Avenue to prevent traffic noises from interfering with the case. Schaefermeyer had ordered the barricades taken down, but had been informed that he would be held in contempt of court if he persisted. Schaefermeyer had then relented and allowed the barricades to once again be placed on the public right of way. He noted that a conversation with Hanson following the trial had elicited the Judge's support for a new Court facility in Seward. SIMUTIS encouraged public support for the trolley the Chamber is trying to acquire. She noted that the Chamber meeting was well attended last week and the trolley had tremendous public support. NOLL asked Schaefermeyer to get together with the family of Dale Clemens to see when they would be in town and available to attend a dedication of the board- walk. Alaska week. NOLL also reported that he had attended an Conference of Mayors meeting in Anchorage last The Mayors agreed to ask the Governor for a I I I 237 PAGE 237 REGULAR MEETING - SEPTEMBER 10 1990 VOLUME 25 supplemental appropriation to make up the $80,000,000 vetoed earlier this year. Also discussed was the state- wide maintenance problem with infrastructure. In addition, a health conunittee was formed within the Council of Mayors to discuss a health platform for the Alaska Municipal League. Noll noted that he was appoint- ed to serve on this conunittee. XVI. CITIZENS' DISCUSSION: JOHN BURCKHARDT, Woodland Hills Estates, provided the Council with the first progress report from Brim Healthcare. He also reported that the Board had appointed Dianne Rabb as its new Administrator effective October 1st. XVII . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None XVIII . ADJOURNMENT: The meeting was adjourned at 9:55 p.m. ,. , "j [: I~f/ ...;. ", ".\~-;:",/" /1 "', . c'~. ",,, ,~,ij'.,.",/ " -"1. da s", rp " tit ..~~rk ", " ,~ f I,,;t'-~: . .: ~~A....\L : ."" ::. :. (Ci~...seal\.: f; ~ . ~ ~ -::.. ". \*-. f'C,,, ....... C^~~~~.~~~~~~~-;;~;~;~-:-~~;~;;~;-2'~-'990-~~~-2~ "'mr~rr.' Mayor 1. CALL TO ORDER: The September 2l, 1990, 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 Meehan led the pledge of alle- giance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Meehan, Sie- minski and Simutis ( Hil ton was excused) 238 CIT.DISCUSSION: J. Krasnansky PAGE 238 SPECIAL MEETING - SEPTEMBER 21, 1990 VOLUME 25 Present also: City Manager Schaefermeyer, City Attorney Arvidson 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 BURGESS AND CARRIED WITHOUT OBJECTION. v. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: A. JAMES A. KRASNANSKY, 536 Second Avenue, stated that he represented a group of Seward General Hospital employees who were concerned about poor manage- ment of the hospital and were attempting to do something about it. He stated that they (the employees) had asked the Hospital Board for permission to organize and bargain with the Board, and the Board had, in turn, asked the city to grant the employees that right. Since this had been denied by the Council, IBEW had filed a suit against the city. Krasnansky stated that the employees were asking for a written contract which would include a grievance procedure that works. In response to a question from Meehan, Krasnan- sky stated that he did not know how many employees currently favored union representation. He also stated that he and the employees he represented had viewed the Council's authorization to purchase new equipment within the last year as an unfair labor practice and a means to pacify disgruntled employees. Meehan objected to this characterization, stating that the Council had authorized the equipment purchase solely to improve the care the community would receive at the hospital and to correct some life safety problems at the hospital. Krasnansky stated that the city should view the hospital as its number one priority and objected to the powerline project taking precedence. Burgess responded that funding for the powerline had come from the Railbelt Energy Fund and noted that these funds were restricted to power projects making them unavailable for the construc- tion of a new hospital. Meehan added that, without the powerline, there would be no industry and thus no need for a hospitaL In response to a question from Dunham, Krasnan- sky stated that he believed conditions at the hospital would improve under Brim's management since the contrac- tor would probably not be swayed by local politics. I I I 239 PAGE 239 SPECIAL MEETING - SEPTEMBER 21, 1990 VOLUME 25 V. SPECIAL ITEMS: A. Request to meet in Executive Session. BURGESS MOVED TO MEET IN AN EXECUTIVE SESSION IMMEDIATELY FOLLOWING THE CLOSE OF THE SPECIAL MEETING IN ORDER TO DISCUSS THE RECENTLY FILED IBEW LAWSUIT; THE MOTION WAS SECONDED BY SIMUTIS. Recess: The meeting was recessed at 12: 25 p.m. and reconvened at 12:29 p.m. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. Noll asked Arvidson to briefly review the background to this suit. Arvidson noted that the suit had been filed in State Superior Court on September 7th; however, the city had not been served until Monday, September 17, 1990. He stated that there were six legal issues raised by IBEW in this case. The Plaintiffs contended that: 1. The city's PERA opt out does not affect hospital employees; 2. Ordinance statutes; If hospital employees are not covered by No. 540, they should be covered by state 3. rights rights; Failure to give hospital employees bargaining is a violation of their state constitutional 4. The city is in violation of the policies set forth in PERA; 5. Ordinance No. 540 violates the policies set forth in PERA; and 6. The city cannot deny the right to organize and bargain without violating state policy. V1. COUNCIL DISCUSSION: None VIr. CITIZENS' DISCUSSION: None VIII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None 240 PAGE 240 SPECIAL MEETING - SEPTEMBER 21, 1990 VOLUME 25 IX. ADJOURNMENT: following Executive The meeting was adjourned at 12:45 p.m., and, a brief recessed, the Council reconvened in Session to discuss the IBEW litigation. . d.Li..J".i...ol...j~^ <_l' . ;~ ~- , !"t~.Sf:w "'. Lind S. Murp -. ., 1i(,'''O . --1-o~. t Cl k . _.' d~' ."~'t"'~':'.A".l.. Y er . ':.t. hl'V ( ':~' _._I~""" (~ty Seal) ~ .': SEA L } oJ.: ",'. -.- : . \", "'~(,. ~~"'~"">t-' ';,.J'.. "'~ 1"... c..+- ' "..~-f r '" .' \....? . .:~ OF p.. . ------------------------------------------------------ . 717J1,- PAGE 240 REGULAR MEETING _ SEPTEMBER 24, 1990 VOLUME 25 ~ I. CALL TO ORDER: Seward Acting The September 24, 1990, regular meeting of the City Council was called to order at 7:30 p.m. by Mayor Michael J. Meehan. II. OPENING CEREMONY: Councilmember Burgess led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Councilmembers Burgess, Dunham, Meehan, Sieminski and Simutis (Hilton and Noll were excused) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Finance Director Gif- ford, Parks and Recreation Di- rector Josey, Harbormaster Sin- gleton, Community Development Director Martin, Librarian Nicolas, Police Chief Bencar- dino and City Clerk Murphy I I I PAGE 241 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 IV. APPROVAL OF MINUTES: SIMUTIS MOVED TO APPROVE THE AUGUST 22 AND 27, AND SEPTEMBER 10, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: SIMUTIS MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer requested the addition of proposed Resolution No. 90-118 as Item 6 under "Resolu- tions". He also requested the deletion of Items Land M on the Consent Calendar, stating that they would be brought back at the next Council Meeting. Meehan asked that Item XIII(A) be pulled from the Agenda. He apologized to those who had applied for Port Committee appointments and stated that their applications would be kept on file for consideration at some future time to be incorporated into subcommittees of the Port Committee. Meehan noted that the Port Committee was attempting to reduce its size in order to better tackle the issues before it at this time. THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. V1. BOROUGH ASSEMBLY REPORT: Kenai peninsula Borough Assembly Representative Jonathan Sewall was not present and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: DAVID HEADLEY, 611 Fourth Avenue, stated that because Denali Broadcasting had allowed KTUU to be off the air for more than a 30-day period, Finance Director Gifford had written him a letter stating that the city now intended to cease collection of the $4 per month fee for TV service. He noted that parts for the translator had to be manufactured and were just received on Friday. He asked the Council to consider overturning the adminis- tration's decision to stop feel collection on behalf of Denali Broadcasting. Schaefermeyer noted that the contract with Denali provided for the city to serve as collection agent for voluntary contributions. This obligation was to expire if the station remained off the air for a 30-day period or longer. He stated that he had instructed Gifford to stop collection as provided in the agreement. 241 CIT. DISCUSSION: D. Headley - KTUU 242 PAGE 242 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 He added that the amount of public complaint to the city as a result of this extended lack of service had added to his decision. He recommended the city not continue the relationship. Schaefermeyer added that the television service was not reliable and generated numerous com- plaints to the city during periods of poor reception as well as the recent lack of service. Headley noted that the system had now been completely rebuilt, but the service could not be main- tained without the help of the city. VIII. APPROVAL OF CONSENT CALENDAR: DUNHAM MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-107, approving REso/coN- IGARBAGE: a one-year contract extension for the collection and One-Year Extension disposal of garbage and refuse within the city, was approved; RESo/GARBAGE: Rate increase REso/sTREETS: Renaming Gov't Rd. to Chamber- lain Road RESo/BANK ACCT: Safe Deposit Box RESo/GRANTS: Munic. Assistance REso/coN- Metco C.O. REso/CHAMBER OF COMMERCE: HaSP. BOARD: Hatch Resig. MARATHON ADD. Replat B. Proposed Resolution No. 90-108, amending the rate for garbage and refuse disposal service for roll-on/roll-off containers, was approved; C. Proposed Resolution No. 90-109, renaming Government Road to Chamberlain Road, was approved; D. Proposed Resolution No. 90-110, authoriz- ing signatures for the city's safe deposit boxes, was approved; E. Proposed Resolution No. 90-111, requesting Municipal Assistance funding from the state of Alaska, was approved F. Proposed Resolution No. 90-114, approving a change order to the METCO contract for miscellaneous concrete work at the North Dock, was approved; G. Proposed Resolution No. 90-115, appropri- ating $2,000 to the Chamber of Commerce to assist in the purchase of the Seward Trolley, was approved; H. Resignation of Arne Hatch from the Commu- nity Hospital Board was accepted; I. Request for approval of a replat of city property within the Marathon Addition to accommodate the development of a medical campus was approved; PAGE 243 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 I J. formation; Library annual report was noted for in- 243 K. Request to waive moorage fees for Chal- SBH: Moorage Fee lenge Alaska was approved; -waived for Chall Alaska L. Deleted; M. Deleted; N. Memorandum listing city of Seward Land Use Allocations was noted for information; O. Comparative study of city attorney fees and charges was noted for information; P. September 19, 1990, letter from Arvidson regarding the hospital employee conflict of interest questions raised by Councilmember Burgess at the Sep- tember 10th meeting was noted for information; and Q. September 18, 1990, letter from Arvidson regarding settlement of the All Seasons Claim was noted for information. I IX. PUBLIC HEARINGS: A. Notice of public hearing as published and posted as required by law regarding the proposed LEASE of land within USS 4827, Seward Marine Industrial Center, to Chugach Alaska Corporation for the purpose of storing modular logging camp units from September 1, 1990, through not later than February 28, 1990, 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 published and posted as required by law regarding the proposed AMEND- MENT to the Ray and Leslie Simutis LEASE of Small Boat Harbor Boardwalk Lease Site No. 7 to accommodate the expansion of Ray's Waterfront Restaurant was noted, and the public hearing was opened. No one appeared in order to be heard, and the public hearing was closed. x. I PRESENTATIONS WITH PRIOR NOTICE: A. STEPHANIE WILSON and SENATOR MIKE SZYMAN- SKI were not present. Gates stated that Szymanski had called earlier and he had told them to be present at 8 p.m. Meehan stated that their presentation could be taken out of order when they arrived. PUBLIC HEARINGS: CAC Lease CIT. DISCUSSION: S. Wilson & M. Szymanski B. JURIS MINDENBERGS, 1306 Fourth Avenue, CIT. DISCUSSION: read from a prepared statement asking the Council to, J. Mindedbergs 244 PAGE 244 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 consider extending the construction deadline on his Small Boat Harbor lease from September 1, 1990, in exchange for a $5,000 cash bond which would guarantee that he would begin construction by April 1, 1991, and complete construction on the parcel by August 1991. He stated that the proposed new facility would be a 2-story structure with office and retail space on the ground floor and, possibly, additional motel rooms on the second floor. Dunham stated that she felt office space in the conununity should be maintained downtown, unless the office was marine related. She stated that she had hoped, to whatever extent possible, that development in the Small Boat Harbor remain marine-related. SEE ITEM XIII (B) FOR ACTION ON THIS ITEM. A. TAKEN OUT OF ORDER. STEPHANIE WILSON, Fishing Company of Alaska, and SENATOR MIKE SZYMANSKI asked that the city draft a resolution in support of the proposed moratorium on the rockfish fishery in the Gulf of Alaska. Wilson noted that the large factory trawler fleet was overcapitalized and was beginning to move out of the Bering Sea into other areas such as the Gulf and the Aleutians. She noted that operators like FCA and those supporting the shore based fisheries could not compete with the large factory trawlers, and the intro- duction of factory trawlers into the Gulf of Alaska could result in destruction of the industry. Wilson stated that the catcher-processors which had pioneered this fishery were sponsoring the "Ground- fish Amendment Proposal" before the North Pacific Fisheries Management Council to analyze the effect of a comprehensive rockfish limited access system. Meehan asked Arvidson if he had a conflict with regards to the resolution coming up later in the meeting (No. 90-118). Arvidson stated that since the fishery was not one which was processed by Seward Fisheries, he did not believe there was a conflict. SIMUTIS, SENIOR COUNCILMEMBER, RULED THAT NO CONFLICT EXISTED AND MEEHAN COULD DISCUSS AND VOTE ON THE RESOLUTION. X1. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: B. Ordinances for Public Hearing & Enact- ment: I I I PAGE 245 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 1. Copies having been made available to the public, Meehan noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVISING TITLE 15, PLANNING AND LAND USE REGULATIONS, PROVIDING FOR LIMITED TENANT OPERATIONS OF BED 6< BREAK- FAST. Murphy noted that a motion to enact the or- dinance was on the floor, having been postponed at the August 10, 1990, meeting until it could be reviewed by the Planning Commission. She also noted the memorandum in the Council Packet setting forth the Commission's objection to the proposed ordinance. Notice of Public Hearing as posted and pub- lished as required by law was noted, and the public hearing was opened. STEVEN WILCOX, 603 Ash Street, stated that no one had a problem with owner-occupied, single bedroom B&B's. He stated that the problem was with non-owner occupied, multi bedroom establishments. He urged the Council to follow the Planning Commission's lead 6< vote "No" on the proposed ordinance. No one else appeared in order to be heard, and the Public Hearing was closed. Simutis stated that as a sponsor of the or- dinance she had attended the Planning Commission meeting at which this issue was discussed. She stated that there was quite a bit of discussion which seemed to support the ordinance; however, following the discussion, the Commission voted to object to the ordinance. She noted that the Council had remanded the ordinance to P&Z, and even though she felt it (the ordinance) was a good idea, she would support the recommendation of the Commission. At the request of Dunham, Meehan read into the record the Commission's reasons for objecting to the ordinance. They were as follows: 1. Concern that absentee landlords might rent houses in which they would have tenants operating a bed and breakfast; 2. Concern that tenants would not have the same feeling for their neighbors that an owner would with regard to property upkeep; 245 ORD/B&B: Giving limi ted t enan t authority to operatE a B&B - FAILED 246 REso/sBH: New Tariff Adopted REso/ELEC.DEPTI CON- : Design contract - T-Line PAGE 246 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 3. Reaffirmation that bed and breakfast is a home occupation and incidental to the home's primary purpose as a residence; 4. Detracts from the intent of bed and breakfast as a home occupation by an owner occupant; 5. Leaves too much room for a person to rent a house with the specific purpose of running a bed and breakfast business; and 6. Concern that by limiting to one bedroom, the city would only be asked later to allow more bedrooms to accommodate someone else's wishes. Dunham concurred with these reasons and stated that this sentiment had been expressed by many others who had contacted her. THE QUESTION WAS CALLED, AND THE MOTION TO ENACT ORDINANCE NO. 635 FAILED WITH ALL PRESENT VOTING NO. C. Resolutions: 1. Copies having been made available to the public, Meehan noted by title only a proposed reso- lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING SMALL BOAT HARBOR TARIFF NO.1, NAMING RULES, CHARGES AND REGULA- TIONS FOR SEWARD CITY DOCKS AND TERMINAL FACILITIES. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-105; THE MOTION WAS SECONDED BY BURGESS AND WAS APPROVED WITHOUT OBJECTION. 2. Copies having been made available to the public, Meehan noted by title only a proposed reso- lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A PROFESSIONAL SERVICES AGREEMENT TO DRYDEN AND LARUE, INC., FOR DESIGN OF THE 115 KV TRANSMISSION LINE FROM LAWING TO SEWARD. BURGESS MOVED TO APPROVE RESOLUTION NO. 90-112; THE MOTION WAS SECONDED BY SIMUTIS AND APPROVED WITHOUT OBJECTION. I I I PAGE 247 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 3. Copies having been made available to the public, Meehan noted by title only a proposed reso- lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A PROFESSIONAL SERVICES AGREEMENT TO LAND FIELD SURVEYS TO ACQUIRE EASE- MENTS AND RIGHTS-OF-WAY FOR THE 115 KV TRANSMISSION LINE FROM LAWING TO SEWARD. BURGESS MOVED TO APPROVE RESOLUTION NO. 90-113; THE MOTION WAS SECONDED BY DUNHAM. MEEHAN RULED THAT BURGESS HAD A CONFLICT OF INTEREST AS A BIDDER ON THE CONTRACT. BURGESS WITHDREW HIS MOTION. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-113; THE MOTION WAS SECONDED BY DUNHAM AND WAS APPROVED WITH FOUR YES VOTES AND BURGESS ABSTAINING. 247 REso/ELEC.DEPT./cON- : Contract to acquire easements for T-Line 4. Copies having been made available to REso/RE- ILEASE: the public, Meehan noted by title only a proposed reso- CAC Lease lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING A SHORT TERM LEASE AGREEMENT WITH CHUGACH ALASKA CORPORATION WITHIN THE SEWARD MARINE INDUSTRIAL CENTER FOR THE STORAGE OF A MODULAR LOGGING CAMP. SIMUTIS MOVED TO APPROVE RESOLUTION NO. 90-116; THE MOTION WAS SECONDED BY DUNHAM. Burgess asked if all the problems with Chugach had been worked out. Schaefermeyer stated that all back due leases, except for this transaction, were now cur- rent. In addition, the prepayment agreement was current and back due moorage and wharfage were promised to be paid by the first of December. Arvidson suggested an amendment to Section 2 of the resolution. BURGESS MOVED TO AMEND SECTION 2 OF THE RESOL- UTION TO READ "THIS RESOLUTION SHALL TAKE EFFECT THIRTY DAYS AFTER ITS ADOPTION AND ONLY AFTER ARRANGEMENTS SATISFACTORY TO THE CITY MANAGER HAVE BEEN MADE FOR PAYMENT OF PAST DUE AMOUNTS TO THE CIT\"; THE MOTION WAS 248 REso/LEASE/RE- Failed - - to be recon- sidered next meeting REso/FISHING: Limited Access Program for Rockfish urged PAGE 248 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 SECONDED BY SIMUTIS AND WAS APPROVED BY UNANIMOUS CONSENT. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED, AS AMENDED, BY UNANIMOUS CONSENT. 5. Copies having been made available to the public, Meehan noted by title only a proposed reso- lution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING AMENDMENT NO. 1 TO LEASE RE- 060 FOR EXPANSION OF BOARDWALK LEASE SITE NO.7. DUNHAM MOVED TO APPROVE RESOLUTION NO. 90-117; THE MOTION WAS SECONDED BY SIEMINSKI. In response to a question from Sieminski, Schaefermeyer stated that there was no upland property available for lease. Sieminski stated that the Hyett-Palma study said that the Boat Harbor should not be used for expan- sion except for marine-related businesses, and he did not feel this lease expansion fit that criterion. Sieminski also suggested that all lease expansions in the Boat Harbor be limited to one story. SIMUTIS DECLARED A CONFLICT OF INTEREST AS OWNER OF THE SUBJECT BUSINESS. THE QUESTION WAS CALLED, AND THE MOTION FAILED WITH BURGESS AND DUNHAM VOTING "YES", MEEHAN AND SIEMIN- SKI VOTING "NO", AND SIMUTIS ABSTAINING. MEEHAN MOVED FOR RECONSIDERATION OF THE MOTION AT THE NEXT MEETING. 6. Copies having been made available to the public and distributed to the Council prior to the beginning of the meeting, Meehan noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CALLING FOR THE NORTH PACIFIC FISHERIES MANAGEMENT COUNCIL AND OTHER STATE AND FEDERAL REGULATORS TO APPROVE A LIMITED ACCESS CONCEPT FOR ROCKFISH SPECIES IN THE GULF OF ALASKA. I I I PAGE 249 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 BURGESS MOVED TO APPROVE RESOLUTION NO. 90-118; THE MOTION WAS SECONDED BY SIMUTIS. Schaefermeyer noted that Noll was a cosponsor of this resolution and asked the Clerk to make that notation on the resolution. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. XII. UNFINISHED BUSINESS: XIII . NEW BUSINESS: A. ApDointment to the Port DeveloDment Committee. Deleted from agenda. B. Mindenbergs' request for extension of construction deadline - Lots 3 & 4. Block 1. Marina Subdivision. SIMUTIS MOVED TO GRANT A TIME EXTENSION TO MINDENBERGS FOR CONSTRUCTION OF HIS ADDITION WITH A DATE TO BEGIN EXPANSION NOT LATER THAN APRIL 1, 1991, AND COMPLETION BY AUGUST 1, 1991, PROVIDED A $5,000 CASH PERFORMANCE BOND IS POSTED; THE MOTION WAS SECONDED BY DUNHAM . Simutis stated that there was a very definite deadline for completion of expansion on this lease site which was ignored until the eleventh hour. She stated that there was supposed to have been something on this property five years ago. She also questioned a further delay until spring when construction could be started at this time. She stated that she hoped the Council was going to abide by any deadline agreed to at this meeting. Simutis said she was happy to see that the cooler was being moved; however, she noted that "incorporation into the new structure" should not mean that it was going to be tacked on. She stated that $5,000 cash performance bond was not a lot of up-front, good faith money. Dunham concurred with Simutis' comments. She stated that she would not vote for another extension to this lease. Sieminski suggested that Mindenbergs be asked to put up a promissory note for $10,000 if the city wanted more in the way of a performance bond. Schaefermeyer stated that it was necessary to establish for the record that, if a bond was posted and the lessee defaulted, the city could collect the bond and take the property as well. 249 RE- Minden- bergs granted time extension for con- struction 250 PAGE 250 REGULAR MEETING - SEPTEMBER 24, 1990 VOLUME 25 THE QUESTION WAS CALLED, AND THE MOTION CARRIED BY UNANIMOUS VOTE. XIV. CITY MANAGER REPORTS: A. Chugach Electric Association neaotiations - Attornev Selection. Schaefermeyer noted that the city had been involved on the periphery in a suit between CEA and other utilities with regards to the return on equity for generation and transmission facilities. He noted that the city's role was a minor one. Apparently, the parties were coming close to a resolution, and Arvidson had advised the city by letter of a conflict Perkins Coie had in representing the city. He stated that if an attorney was required to act on behalf of the city, he proposed to utilize Julian Mason for that purpose. Schaefermeyer noted that the Board of Regents would be in Seward on Thursday and Friday. He urged the Council to attend the reception in their honor on Thursday evening. Murphy noted that Tuesday, October 2nd, was Election Day. She urged those who would not be in town on that day to vote absentee in her office and encouraged all others to come to the polls on Tuesday. xv. COUNCIL DISCUSSION: Burgess asked if Council was going to respond to Headley's request regarding termination of the city's agreement to collect television fees for the maintenance of the KTUU translator. Schaefermeyer stated that he would schedule this for action on the October 8th meeting, and the letter of termination would be held in abeyance until after the Council had an opportunity to direct the administration as to how to proceed. Council. MEEHAN thanked Szymanski for appearing before XVI. CITIZENS' DISCUSSION: CHRISTOPHER GATES, Johnston Road, reported on actions of the Citizens' Advisory Committee and updated the Council on three issues important to prevent future oil spills. First, he stated that B/P had agreed to accept liability for any oil spills by any of its charter fleet. Second, the fishing vessel program was under way. John Dahlman in Seward was reported to be currently signing up local fishing vessels to assist in any future spills. Third, the Economic Development District (KPB) PAGE 1 SPECIAL MEETING - OCTOBER 3, 1990 VOLUME 26 I 1. CALL TO ORDER: The October 3, 1990, special Seward City Council was called to order Vice Mayor David L. Hilton. meeting of the at 4:06 p.m. by II. OPENING CEREMONY: Councilmember Dunham led the pledge of alle- giance to the flag. III. ROLL CALL: Present were: Vice Mayor Hilton and Council- members Burgess, Dunham and Simutis (Meehan, Noll and Sie- minski were excused) Present also: City Clerk Murphy, Deputy City Clerk Jones and Administrative Secretary Martin I IV. APPROVAL OF SPECIAL MEETING AGENDA: DUNHAM MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. V. SPECIAL ITEMS: A. Canvass of 10/02/90 Election. Murphy distributed a tally of the unofficial results of the October 2, 1990, regular election. She noted that a total of four hundred and thirty-eight (438) ballots had been cast at the polls. Of these, four hundred and thirty (430) 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 sixteen (16) electors who had requested absentee ballots. She noted that all sixteen had been cast by qualified voters of the city and she recommended that the board count the ballots cast by the below named voters: Precinct No. 1 Precinct No. 2 I Walter Allen Annette Cass Donald W. Cripps Kathryn Epton Charles D. Brossow Meggin M. Dunham Willard E. Dunham Stephen P. Hill ELECTIONS: Canvass of Election r, ~ PAGE 2 SPECIAL MEETING - OCTOBER 3, 1990 VOLUME 26 Mark Kansteiner Joseph E. Lemieux II Brent Whitmore Elsie Whitmore Carol J. Hoogland Darlene F. Lust William C. Noll, Jr. Dennis M. Scholl SIMUTIS MOVED TO ACCEPT THE CLERK'S RECOMMENDA- TION TO COUNT THE SIXTEEN (16) ABSENTEE BALLOTS; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. As Hilton read the names of the absentee ballot envelopes, Assistant City Manager Yanez opened the outer envelopes, removed the 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 eight (8) questioned ballots had been cast by voters whose names did not appear on the precinct registration lists. She recommended that the Council reject six (6) of these ballots as follows: Precinct No.1 Gerald E. Badger - No record of voter registration Cherie Devaney - Registered in Bear Creek William L. Hightower - Registered in Bear Creek Mary Houlahan-Badger - Changed voter registration to Seward on 09/13/90 - Too late to qualify to vote in the October election Robert G. Knudson - No record of voter registration Christopher J. Stec - Registered in Eagle River BURGESS MOVED TO ACCEPT THE CLERK'S RECOMMENDA- TION TO REJECT THE SIX (6) QUESTIONED BALLOTS; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. Murphy put the rejected ballots aside for safekeeping. Murphy noted that two of the questioned ballots had been cast by qualified voters of the city, and she recommended that the board count the ballots cast by the following: Precinct No.1 William Arnaud - Registered in Seward No.1; Name left off registration list in error by Div. of Elections Lara Dunham - Registered in Seward No.2; voted in Seward No. 1 f" t ~, PAGE 3 SPECIAL MEETING - OCTOBER 3, 1990 VOLUME 26 I BURGESS MOVED TO ACCEPT THE CLERK'S RECOMMENDA- TION TO COUNT THE TWO QUESTIONED BALLOTS; THE MOTION WAS SECONDED BY SIMUTIS AND CARRIED WITHOUT OBJECTION. As Hil ton read the names on the questioned ballot envelopes, Yanez opened the outer envelopes, removed the inner envelopes and put them aside with the waiting absentee envelopes. These inner envelopes were then shuffled and opened by Yanez. The ballots were removed and read aloud by Hil ton. Murphy read the results of the combined totals as follows: PRECINCT PRECINCT ABSENTEE/ NO. 1 NO.2 OUESTION TOTAL COUNCILMEMBER (2-year term; 3 to be elected) BURGESS, Raymond 144 85 11 240 DUNHAM, Beverly 171 118 11 300 KRASNANSKY, James A. 115 54 7 176 O'BRIEN, Patrick 104 60 11 175 SIMUTIS, Leslie 91 69 4 164 SUTHERLAND, Donald A. 75 35 5 115 WRITE-INS 26 4 1 31 I TOTAL VOTES CAST 279 159 16/8 454 TOTAL VOTES COUNTED 271 159 16/2 448 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 8, 1990. She added that if no such protest was filed, the City Council, at its regular meeting of October 8th, would certify the election as valid and declare the results official. VI. COUNCIL DISCUSSION: None VII. CITIZENS' DISCUSSION: None VII I . COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None IX. ADJOURNMENT: I The meeting was adjourned at 4:30 p.m. Oa4Y~ David L. Hilton Vice Mayor . -.- '\;: ' "" '..... : ... :..._ >'. ~',A~ ' 1:'~.'" 'r _ _, J'), ....Gi 1... . <"*". " '", .. ,"'.... <.'.' tE Of ~~"" ~" 4: PROCLAMA TIONS: PAGE 4 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 1. CALL TO ORDER: The October 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: Councilmember Hilton led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Dunham, Hilton, Mee- han, Sieminski and Simutis Present also : City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Parks and Recreation Director Josey, Har- bormaster Singleton, Librarian Nicolas, Police Chief Bencar- dino and City Clerk Murphy PROCLAMATIONS: A. Noll proclaimed October 7-13, 1990, to be NATIONAL 4-H WEEK in Seward. B. Noll presented a proclamation designating October 1990 as NATIONAL DISABILITY EMPLOYMENT AWARENESS MONTH to Gordon A. Wickstrom, Manager of the Seward Employment Center. C. Noll presented a proclamation designating October 1990 as DOMESTIC VIOLENCE AWARENESS MONTH to DVSA Program Coordinator Nancy Orth. D. Noll presented a proclamation designating October 21-27, 1990, as NATIONAL BUSINESS WOMEN'S WEEK to Seward BPW President Karen Glenn. E. Noll presented a proclamation designating October 22-28, 1990, as RED RIBBON WEEK & DRUG FREE AMERICA WEEK in Seward to the Seward Teen Council. F. Noll presented a proclamation to retiring AVTEC Administrator Don Hitchcock recognizing him as an outstanding educator and civic contributor. PAGE 5 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I G. Noll presented Emily Ransom a proclamation designating October 8, 1990, as EMILY RANSOM APPRECIATION DAY. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE SEPTEMBER 21, SEPTEMBER 24, AND OCTOBER 3, 1990, MINUTES AS WRITTEN; THE MOTION WAS S"t:CONDED BY HILTON AND CARRIED WITHOUT OBJECTION. SPECIAL ITEMS: A. Certification of 10/02/90 Election. SIMUTIS MOVED TO CERTIFY THE OCTOBER 2, 1990, ELECTION AS VALID AND TO DECLARE THE RESULTS OFFICIAL; THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. Noll presented a plaqne to Simutis in recogni- tion of her six years' service to the community as a member of the Council. I B. Swearina in and seatinq newly elected Councilmembers. Murphy administered the oath of office to re-elected Councilmembers Raymond M. Burgess and Beverly Dunham and newly elected Councilmember James A. Krasnansky. Simutis stepped down from the dais and, following a short recess, James A. Krasnansky assumed his seat at the Council dais and participated in the remain- der of the meeting. V. APPROVAL OF REGULAR MEETING AGENDA: HILTON MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM. Sieminski asked to move Items "C", "H" and "J" from the Consent Calendar to the regular meeting agenda. Schaefermeyer asked to add a new Resolution No. 90-127 as Item "4" under "Resolutions". He also stated that he had received a letter from Petro Marine Services requesting authorization to proceed with a lease expan- sion for the purpose of constructing a warehouse. He asked to add this under City Manager's Report for direction to proceed with lease expansion negotiations. THE AGENDA WAS APPROVED AS AMENDED BY UNANIMOUS CONSENT. VI. BOROUGH ASSEMBLY REPORT: I Kenai peninsula Borough Assembly Representative Jonathan Sewall was not present and no report was given. 5 ELECTIONS: Certification of lO/02/90 Election C.COUNCIL: Swearing in and seating of Burgess, Dunham & Kras- nansky - 1 6 PAGE 6 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 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 BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: RESO/PURLIC RECORDS: A. Resolution No. 90-119, authorizing the Records Destruction destruction of certain public records, was approved; ELECTIONS: Destruction of 1989 Ballots RESO/GRANTS/COM. SCHOOLS: Grant from KPB accepted CAMPGROUNDS: Relocating Winter Campgrounds RESO/WATER' Amending Tariff RESO/PURCHASING:. Winter .Sand C.COUNCIL: Meeting Resched. CIT. DISCUSSION: Dave Headley B. Resolution No. 90-120, authorizing the destruction of the ballots from the 1989 regular elec- tion, was approved; C. Resolution No. 90-121 was moved to the Regular Meeting Agenda; D. Resolution No. 90-122, accepting a grant from the Kenai Peninsula Borough and appropriating funds for the purpose of operating a community schools program for the 1990-91 school year, was approved; E. Resolution No. 90-123, relocating the winter camping area, was approved; F. Resolution No. 90-124, amending Resolution NO. 90-060 to clarify the rate charged to provide water to temporarily moored vessels, was approved; G. Resolution No. 90-126, awarding a contract for the purchase of winter sand, was approved; H. Invoices for legal services provided by Perkins Coie were moved to the Regular Meeting Agenda; I. Request to reschedule the October 22, 1990, meeting to October 29, 1990, was approved; and J. Change Orders No. 1 and 2 to the Summit Paving contract were moved to the Regular Meeting Agenda. IX. PUBLIC BEARINGS: None X. PRESENTATIONS WITH PRIOR NOTICE: A. DAVID HEADLEY, representing KRXA Radio and Denali Broadcasting, was not present. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: PAGE 7 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I 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 SECTION 3.15.090 OF THE CITY CODE TO ACCURATELY REFLECT THE APPROPRIATE RESOLUTION AUTHORIZING CITY PARTICI- PATION IN PERS. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 636; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that in 1978 the city approved a resolution transferring the city's retirement plan to the State Personnel Employee Retirement System. At that time, the city failed to amend the Code to reflect this change. He noted that the ordinance was a housekeeping measure only. THE ORDINANCE WAS INTRODUCED BY UNANIMOUS CONSENT. Public hearing was scheduled for October 29, 1990. I 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, AMENDING CITY CODE PROVISIONS GOVERNING LI- CENSING AND FEES FOR DOG KENNELS AND TAGS. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 637; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this represented the first proposed revision in fees for kennels and dog tags in over a decade. He noted that the first change was to amend the license year to a calendar year. The second change was to set the age of animal requiring a license. The third change would increase the cost of a dog license to $10 for spayed/neutered dogs and $15 for unspayed- unneutered dogs. Schaefermeyer also noted proposed changes to regulations governing kennel operations. I Burgess stated that January 1 might not be a good time of year for a seasonal economy since this was a "short" time for those employed seasonally. Schaefer- meyer stated that there did not seem to be a good time to 8 RESO/RE- Lease Amendment PAGE 8 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 induce people to license their animals, and the adminis- tration felt that the January 1 due date might be easier for the public to remember. Dunham asked how many licensed animals there were in Seward. Animal Control Officer Dee Johnson stated that on July 1, there were 21 licensed dogs in Seward. In response to a question from Meehan, Johnson stated that she did not pick up cats unless they were right downtown and causing a problem. However, she stated that cat traps were being constructed by AVTEC students, and once she had traps available, she would begin to address the cat problem. Meehan stated that if dogs were to be licensed, so should cats. Noll asked the administration to address these questions at the next meeting. Meehan also objected to a $15 fee for any animal. Johnson stated that the purpose of the higher fee for unspayed/unneutered pets was to encourage owners to take care of their animals. She stated that she was conducting monthly spay/neuter clinics and they were proving to be successful. Dunham stated that the city should address the problem of abandoned pets. ORDINANCE NO. 637 WAS INTRODUCED WITHOUT OBJECTION. Public hearing was scheduled for October 29, 1990. 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, ALASKA, APPROV- ING AMENDMENT NO. 1 TO LEASE RE-060 FOR EXPANSION OF BOARDWALK LEASE SITE NO.7. Murphy noted that the motion to approve this resolution had been defeated at the last meeting. Following the vote, Councilmember Meehan had moved for reconsideration. Therefore, the motion before the Council for action at this time was the motion to recon- sider the vote on Resolution No. 90-117. 9 PAGE 9 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I THE QUESTION WAS CALLED, AND THE MOTION TO RECONSIDER WAS APPROVED WITH SIX YES VOTES AND SIEMINSKI VOTING NO. Sieminski asked if Burgess had a conflict of interest since his name was on the survey of the parcel. Arvidson stated that there did not appear to be a con- flict. Burgess stated that the survey was done for the city of Seward, not Simutis. Sieminski once again objected to approval of the resolution. Meehan refuted Sieminski's arguments. He stated that in most coastal communities, construction was taking place within the tidelands, and the Corps of Engineers had approved the construction. He stated that this was a good project which would bring in additional lease revenues and sales tax to the city and was a needed addition to the harbor. I Dunham stated that she continued to believe that the harbor should be marine-related, but the res- taurant was already there and the parcel of land in question could be used for nothing else. Krasnansky stated that not allowing a business owner to expand his operation as his needs changed would send a negative message to the business community. In response to a question from Noll, Sieminski stated that the building was situated too close to the south property line to allow fire access. Schaefermeyer stated that the new lease would accurately reflect the property which was being utilized, and the owners would pay full value for every bit of the lease property. Noll stated that wherever he travelled, he heard compliments regarding the city, and always included in the comments were compliments regarding the Small Boat Harbor, the Boardwalk, etc. THE QUESTION WAS CALLED ON THE MOTION TO APPROVE RESOLUTION NO. 90-117, AND THE RESOLUTION WAS APPROVED WITH SIX YES VOTES AND SIEMINSKI VOTING NO. 2. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT FOR PROFESSIONAL SERVICES 10 RESO/CON- > Contract w/Dane Amos to provide Computer Services PAGE 10 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 TO PROVIDE COMPUTER SERVICES FOR THE CITY OF SEWARD. HILTON MOVED TO APPROVE RESOLUTION NO. 90-125; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that Dane Amos was retir- ing from the city in his capacity as Supervisor of the city's correctional facility effective the end of the month. In addition to these duties, Amos had provided the city's maintenance and programming services for all of the city's personal computers. Schaefermeyer noted that the FY 91 budget contained $30,000 for computer programming/maintenance services. He stated that there was no one else locally who could provide the service and he recommended that the city approve the resolution. Schaefermeyer noted one modification which had been made to Article 6.1. The final sentence was to be deleted so that it would be clear that any programs' developed by Amos would become the property of the city. Hilton asked if the city had requested proposa- ls from other sources. Schaefermeyer stated that the city had informally searched for other local providers, but had been unsuccessful. Meehan stated that he shared Hilton's concerns regarding the need to RFP this service. Schaefermeyer stated that, based on his research, $40 per hour was not an excessive amount. In addition, without a contract with a local person, the city would be contracting out of Anchorage and paying a higher rate, plus transportation. In addition, it was important to have someone available to respond immediately as problems arise. Schaefermeyer noted that $30,000 per year was not an unreasonable amount to spend for maintenance services for a city as dependent on computers as is the city of Seward. Hilton stated that he would vote in favor of this resolution, but would ask that the city advertise for proposals prior to entering into an agreement in the next fiscal year. Meehan concurred. Dunham agreed that the city should advertise this contract in the future. Sieminski stated that Amos was probably very well qualified, but a retired employee should not be allowed to work for the city. Schaefermeyer stated that Amos would be working as an independent contractor, not as an employee of the city. PAGE 11 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I Noll suggested that the city advertise the contract. Schaefermeyer noted that under a PSA, the city would look at other factors in addition to price. Krasnansky asked why this was such an emergency and asked how long the city had known that Amos was going to retire. Schaefermeyer stated that the city had known for some time that he was eligible for early retirement, but he had formally resigned only 3 or 4 weeks ago. THE QUESTION WAS CALLED, AND THE RESOLUTION CARRIED BY UNANIMOUS VOTE. RECESS: The meeting was recessed at 9:05 p.m. and reconvened at 9:15 p.m. 3. Moved from Consent Calendar. Copies having been made available to the Council, Noll noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AWARDING A CONTRACT TO PROVIDE METER READING SERVICES FOR THE CITY. I MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-121; THE MOTION WAS SECONDED BY DUNHAM. Sieminski asked why a bond was not required for this contract. He suggested a $2500 bond to be paid over three months. Sieminski also suggested that a $50 fine be imposed when a wrong meter reading was given to the city, with $25 to go to the city and $25 to the customer. Schaefermeyer stated that the city had con- sidered imposing a bond. However, because of the rela- tively small size of the contract, it was felt this might unduly restrain future proposers. Schaefermeyer stated that, whenever a meter had to be read a second time, the cost of that service was deducted from the contract amount. Krasnansky stated that he had once belonged to an electrical cooperative which required reading of meters monthly be the customer. He asked if the city could try this. He agreed that a bond was important. In response to a question from Sieminski, Schaefermeyer stated that he charged back against the contractor the cost to the city to do a second read of the meter when there was a problem. I Schaefermeyer suggested that, rather than a bond, the city might have the contractor present a 11 RESO/CON- Contract for Meter Reading Services 12 RESO/PURCHASING: Au.horization to purchase equip. from Ritchie Bros. Sale PAGE 12 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 certificate of deposit payable to the city and the contractor to be held in the city's safe deposit box as surety for performance of the contract. Schaefermeyer stated that the city had attempted to make this contract attractive without burdening the contractor with a great deal of overhead. He noted that the alternative was to go back to IBEW meter reading which was a very expensive proposition. He added that, if action on this resolution was postponed, the meters would be read in October by IBEW linemen. Hilton stated that he favored posting of a certificate of deposit rather than a bond. Schaefermeyer stated that he would accept award contingent upon the contractor posting a CD in an amount set by Council. Noll instructed Schaefermeyer to obtain a CD in the amount of $1350 prior to issuing the contract. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH SIX YES VOTES AND KRASNANSKY VOTING NO. 4. Agenda Addition. Copies having been made available to the public and distributed to the Council prior to the start of the meeting, Noll noted by title only a proposed resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AP- PROPRIATING FUNDS FOR THE PURCHASE OF EQUIPMENT TO BE AUCTIONED BY EXXON. HILTON MOVED TO APPROVE RESOLUTION NO. 90-127; THE MOTION WAS SECONDED BY MEEHAN. Schaefermeyer noted that Ritchie Brothers Auctioneers was preparing to auction equipment and materials left over from the Exxon oil spill cleanup effort. He stated that the city was interested in obtaining several items if they could be had for a reasonable price. In response to a question from Meehan, Schaef- ermeyer stated that this would be a public outcry bid, not a sealed bid. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITHOUT OBJECTION. XII. UNFINISHED BUSINESS: COM. HOSPITAL BOARD; 1 A. Communit,v Hos9ital Board ADDointments. _Appointments ".1 noted that Hilton and Krasnansky would not be PAGE 13 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I allowed to discuss or vote on the issue, since they were both employed by the hospital. Noll stated that there were three 3-year seats and one I-year seat available. Seven applications were received for the four positions. Noll asked Meehan to rule on whether he (Noll) had a conflict of interest regarding the appointment of his ex-wife to the Board. Arvidson stated that since members of the Hospital Board did not receive payment for service, there was no conflict under the Code. Meehan concurred with Arvidson and stated that there was no reason for Noll to abstain. NOLL APPOINTED RICHARD BOYD, LOUIS NAUMAN AND JAYNE NOLL TO THE THREE 3-YEAR SEATS AND JOAN CLEMENS TO THE I-YEAR SEAT ON THE HOSPITAL BOARD. Sieminski asked why the Council was not ap- pointing those nominees proposed by the Board. Dunham stated that it was the Mayor's preroga- tive to choose the members of the Board, and she would support the Mayor's choice. I Meehan agreed that all of the applicants were qualified. He also noted that the Mayor had appointed to the 3-year seats those whose applications were received within the original advertising period. COUNCIL CONCURRED WITH THE MAYOR'S APPOINT- MENTS . Noll introduced Dianne Rabb, newly appointed Hospital Administrator, to the city. B. TV Channel 9 Aqreement. MEEHAN MOVED TO EXTEND THE AGREEMENT BETWEEN DENALI BROADCASTING AND THE CITY FOR ONE ADDITIONAL YEAR; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that the current agreement provided for termination by the city should Denali cease to broadcast for a period of 30 days or more. He added that the station had not operated for several months, and he recommended termination of the Agreement. Schaefer- meyer also noted a letter received by KTUU-TV from Denali Broadcasting stating that Denali would no longer transmit KTUU because of concerns regarding the integrity of its programming. I Dunham stated that she was disgusted with this issue, as well as the fact that the city had not been 13 TELEVISION: Discontinuation of fee collection agreement with Denali Broadcasting 14 C.CQUNCIL: Hilton elected Vice Mayor C.CQUNCIL: Meehan apptd. Council rep. to Hosp. Board PAGE 14 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 kept informed. In addition, Headley had stated that the translator would be on line and in good shape prior to this meeting, yet the station was still not on the air. Dunham also objected to the letter to KTUU regarding a concern for the "integrity" of Channel 2's programming. She stated that she opposed continuation of the agree- ment. Burgess concurred with Dunham. In response to a question from Burgess, Schaefermeyer stated that the local cable system had been in contact with Alascom and had found that it would be fairly expensive to bring a station or stations into Seward via the fiber optic cable from Anchorage. Burgess stated that he regretted that those residents outside of town would have no television if this agreement was canceled, but the city had no choice. Meehan agreed with Burgess and Dunham. He stated that it appeared that Denali's intention even prior to Headley's presentation to the Council was to discontinue operation of the translator and KTUU broad- cast. Sieminski stated that the city should inves- tigate the possibility of bringing KTUU to Moose Pass and Seward via some other method. Krasnansky stated that perhaps the Sportsman's Club in Moose Pass would be willing to take over the service at this time. Dunham suggested that the television monies collected in September be rebated to the customers. THE QUESTION WAS CALLED, AND THE MOTION FAILED WITH ALL VOTING NO. XII 1. NEW BUSINBSS: A. Election of Vice Ma,yor. MEEHAN NOMINATED DAVID HILTON AS VICE MAYOR; THB MOTION WAS SECONDED BY DUNHAM. MEEHAN MOVED TO CLOSE NOMINATIONS, AND HILTON WAS NAMED VICE MAYOR BY UNANIMOUS CONSENT. B. Appointment of the Community Hospital Board. SERVE ON THE HOSPITAL BOARD. NOMINATION. Council representative to NOLL NOMINATED MEEHAN TO THE COUNCIL CONFIRMED THB C. Citv Attorney invoices. Consent Calendar) (Moved from PAGE 15 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 I HILTON MOVED TO AUTHORIZE PAYMENT TO PERKINS COlE IN THE AMOUNT OF $1270 FOR OIL SPILL SERVICES AND $436.91 FOR SERVICES REGARDING THE CITY'S SUIT AGAINST SSC; THE MOTION WAS SECONDED BY BURGESS. Sieminski questioned why these invoices did not show up on the cover sheets for the month's they were billed. He also asked where the city stood with regards to charges to the hospital which the Council had disput- ed. Schaefermeyer stated that the oil spill invoice was submitted early to allow it to be passed on to Exxon for reimbursement. (Exxon requested that it be expedit- ed) He noted that the Seward Ships Chandlery item was billed separately because the city was participating in the suit with the insurance company, with the city paying 10% and the insurance company paying the other 90% Arvidson stated that he had reviewed the Hospital charges. He stated that he had not had a chance to discuss this with Schaefermeyer as yet. Schaefermeyer stated that payment had been held in abeyance until he could discuss this with Arvidson. I THE QUESTION WAS CALLED AND THE MOTION CARRIED BY UNANIMOUS VOTE. D. Summi t Pavina Chanae Orders. ( Information Item pulled from consent calendar by Sieminski) Sieminski asked why the city was paying more money when the city had a contract for the paving. Diener noted that the regrading of the sidewalk at the Senior Center was necessary because of an engi- neering error and was not the fault of the contractor. In addition, the contractor was required to move an additional stop sign. XIV. CITY MANAGER REPORTS: I Schaefermeyer introduced Lisa Tiner, newly appointed representative from the Office of Representa- tive Gene Kubina. She stated that she was working as a Legislative Aide for Rep. Kubina who had established a new office in the DLK Building. She stated that office hours were 9-5, Monday through Friday. She encouraged anyone who thought the office could be of benefit to drop by or give her a call. She noted that an open house would be conducted at the office on Thursday from 6-8 p.m. 15 C.A TTY: Payment of Invoices approved CON- : Change Orders noted for information 16 PAGE 16 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 Schaefermeyer stated that he had received a letter from Dale Lindsey of Harbor Enterprises requesting that the city negotiate an amendment to his lease at SMIC. Schaefermeyer asked Council's concurrence to proceed with negotiations. There was no objection from Council. SCHAEFERMEYER noted that the governor had signed the declaration of disaster to free up funds to allow the Corps of Engineers to do remedial construction work in Lowell Tunnel. xv. COUNCIL DISCUSSION: KRASNANSKY stated that he had visited the power generating station near the Army Recreation Camp yester- day in response to an employee's allegation that a spill had occurred during maintenance. In addition, he had found that PCB's were stored in a shed near city water lines. He asked the city to look into the possibility of moving these contaminated items to a place other than near city water lines and wells. Diener stated that, ideally, the power plant and substation should be relocated; however, this was not feasible at this time. He noted that the water wells and lines were checked periodically and were free from contamination. BURGESS thanked the voters for returning him to office. He stated that he would continue to try to do a good job. SIEMINSKI stated that he was concerned about an apparent conflict of interest when the city contracted with Burgess without going out for RFP. Arvidson stated that, occasionally, the city lets small contracts on an as-needed basis within the city manager's authority. He noted that Burgess would be required to abstain should a contract come to Council. Arvidson added that the Council always had the authority to expand its conflict of interest rules under the Code. DUNHAM asked that the city request that the 35 mph sign could be moved further out the highway, past the new road to the school. Diener stated that he made such a request to the state several weeks ago. In response to his request, a state team had surveyed this area several days ago. He stated that he would keep the Council informed. HILTON stated that he, too, was concerned about the speed limit in this area. I I I 17 PAGE 17 REGULAR MEETING - OCTOBER 8, 1990 VOLUME 26 MEEHAN stated that he had attended the Korea Alaska Day celebration as the city's representative. Meehan asked why a barricade was placed in the back of the NAPA building making it impossible to pull into the business from the back. Schaefermeyer stated that when the CUP was granted for the facility, it was made clear that there was no thru access. He noted that the back of the property bordered ARR property, and the railroad had asked the city to assist in putting planters in this area along the border of the two properties. In response to a question from Meehan, Diener noted that several culverts had been replaced with larger units. He stated that he was going to be taking another look at the culverts on Dairy Hill; however, at this point, he felt that the culverts in place should take care of any except a one-hundred year flood. NOLL thanked the hospital for the revised budget showing cuts which would be made if a 20\ cut were necessary. He thanked the Clerk for her report on Attorney Options and asked the Council to review and be ready to discuss this at the next meeting. NOLL noted that he would be attending his first meeting as a member of the AMBS Advisory Board. He thanked Fishing Company of Alaska for its $10,000 donation to SAAMS, the first matching money toward's Lindsey's donation. XVI. CITIZENS' DISCUSSION: HERMAN LElRER, Government Hill, stated that he wouldn't worry too much about contamination of the city's water supply. He stated that the wells were deep and teh surface water moved rapidly, making it next to impossible to contaminate the city's water. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None XVIII. ADJOURNMENT : The meeting was adjourned at 10:45 p.m. ;.~c~ l 1. 1.am C. Noll Mayor " -; . :; \.' i: :':.\ ::~ ."';~~: L ,,~,):;}~( " 1.- Ch'- ;",;_~~ /, -. r, r - -,' 18 RESO/CON- Moorage Agrmt. w /ARCO Alaska f or berthing of Glomar Adriatic vm over the winter PAGE 18 SPECIAL MEETING - OCTOBER 25, 1990 VOLUME 26 I. CAT.T. TO ORDER: The October 25, 1990, special meeting of the Seward City Council was called to order at 11:00 a.m. by Mayor William C. Noll. II. OPENING CEREMONY: Councilmember Hil ton led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Hilton, Krasnanskyand Meehan (Sieminski arrived at 11:02 a.m.~ Dunham arrived at 11:05 a.m.) Present also: City Manager Schaefermeyer, Assistant City Manager Yanez, Port Marketing Director Gates, Harbormaster Singleton 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 BURGESS AND CARRIED WITHOUT OBJECTION. V. SPECIAL ITEMS: 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, APPROV- ING A SUPPLEMENTAL AGREEMENT FOR BERTHING FOR GLOMAR ADRIATIC VIII AT THE SEWARD MARINE INDUSTRIAL CENTER. HILTON MOVED TO APPROVE RESOLUTION NO. 90-128; THE MOTION WAS SECONDED BY MEEHAN. Gates noted that the GLOMAR ADRIATIC VIII was on its way to Resurrection Bay to take advantage of the Bay's ice free status in winter. ARCO had requested that the rig be allowed to moor at a dock at SMIC, and the city had negotiated an agreement with ARCO to berth the rig at the Inlet Fish dock until 04/15/91 at a cost to ARCO of $60,000. Gates noted that Inlet Fish had released its right to preferential use of the dock until 19 PAGE 19 SPECIAL MEETING - OCTOBER 25, 1990 VOLUME 26 I 03/10/90. He stated that if Inlet should need the dock after March 10th, the rig would be allowed to station itself north of the dock. Gates noted that no rebates would be given to ARCO should the rig be removed from the Bay. Be added that the city was looking at a long term relationship with ARCO to winter the oil rig for the next three or four winter seasons. Burgess asked if the rig would be hooked to water and sewer. Gates stated that there would be no permanent water hook up (although water would be taken on from time to time), but the rig would hook into the city's sewer system via a flex hose connection (for human waste only). Schaefermeyer noted that the waste would be monitored periodically. Gates also noted that there would be some additional fees for wharfage and special services. Meehan asked if the rig would be Schaefermeyer stated that the rig would be taxed city. taxed. by the I In response to a question from Noll, Singleton stated that he did not anticipate any hazard to boats desiring to use the 250-ton boat lift. Krasnansky suggested that, if this relationship was going to continue for the next several years, the city should consider some semi-permanent water and sewer hook-ups. Gates stated that in future years Inlet might not be willing to waive its use of the Dock, necessitat- ing alternative arrangements for the rig. THE MOTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. I VI. COUNCIL DISCUSSION: SIEMINSKI stated that he would like to see some of the revenues received from this agreement used to fence the boat storage area at SMIC. NOLL asked for a run down of the day's schedule. Schaefermeyer stated that Senators Zharoff, Jones, Pourchot, Frank and Kerttula would be arriving at the hospital this morning. The Council was invited to a stand-up buffet lunch at the hospital to meet with the senators immediately following the Council meeting. Schaefermeyer noted that the senators were in town to tour the hospital. In addition, Tony Knowles and Willie Hensley were scheduled to arrive in the afternoon, with a fund-raiser at Karena Adler's at 6:30 this evening. 20 PAGE 20 SPECIAL MEETING - OCTOBER 25, 1990 VOLUME 26 Noll stated that he had recently attended an Alaska Marine Highway System Advisory Board meeting in Juneau. He stated that Joe Henry had suggested making Seward the northern leg of a Bellingham to Alaska route. In addition, it was suggested that Seward be made the terminal of a western ferry run. VII. CITIZENS' DISCUSSION: None VIII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None IX. ADJOURNMENT: The meeting was adjourned at 11:20 a.m.. .f..;..k'.':""'"'-<':' ",r. ",,~ S~:; ;''..<..-:".. .). .',..-: '~'o,1 ',' . \ t't'1. .~,t.:. .' ... , ,^ '.>.J;i ,,{}, da ~~ '. C$,ty H ,:,Jty S.al) r, 1"" . '::.~.:;""' '(r:. ,. ------------------------------------------------------- '. ".,_ . \0.,.' ^,,' PAGE 20 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 j ,~' r -: ~\.'-{ ir~" ~, '.....; -,({, ',... ~/,.., __)'.,..~-10' > '~,' . I. CALL TO ORDER: (~c::7XA' Wl.D l.am C. No 1 Mayor The October 29, 1990, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor William C. Noll. 11. OPENING CEREMONY: Murphy led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Present also: Mayor Noll and Councilmembers Burgess, Dunham, Krasnansky, Meehan and Sieminski (Hilton was excused) city Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Harbormaster 21 PAGE 21 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I Singleton, Electrical Engineer Cal- vert, Librarian Nicolas, Police Chief Bencardino and City Clerk Murphy PROCLAMATIONS: A. Noll presented a proclamation to Gary Elde PROCLAMATIONS: and Jeffery Austin designating October 29, 1990, as GARY ELDE & JEFFERY AUSTIN APPRECIATION DAY. B. Noll read a proclamation designating November 1990 as ALZHEIMER'S DISEASE AWARENESS MONTH in Seward. C. Noll noted that Corrections Supervisor Dane Amos would be retiring on Wednesday after more than 19 years of service to the city and stated that he had proclaimed October 31, 1990, to be DANE AMOS APPRECIATION DAY. IV. APPROVAL OF MINUTES: MEEHAN MOVED TO APPROVE THE OCTOBER 8 AND 25, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. I V. APPROVAL OF REGULAR MEETING AGENDA: KRASNANSKY MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS. Krasnansky asked to add Items E and G from the Consent Calendar to the Regular Meeting Agenda. Siemins- ki asked that Items I, K, L, and 0 be placed on the Regular Meeting Agenda. Meehan asked that Item D be moved to Regular Meeting Agenda. Schaefermeyer requested the deletion of both public hearings and the resolutions approving leases to Shores ide Petroleum and Robert Ferguson. SIEMINSKI MOVED TO MEET EXECUTIVE SESSION TO DISCUSS PERSONNEL AND LEGAL ISSUES; THE MOTION WAS SECONDED BY DUNHAM AND THE MOTION CARRIED WITHOUT OBJECTION. THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. I V1. BOROUGH ASSEMBLY REPORT: 22 PAGE 22 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 Kenai Peninsula Borough Assembly Representative Sewall was not present, and no report was given. VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: APPROVAL OF CONSENT CALENDAR: VI II . PERSONNEL/RESO: (Sexual Har.Pol) DUNHAM MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY BURGESS AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-131, approving a city personnel policy regarding sexual harassment, was approved; FLOOD/BUDGET/ RESO: B. Proposed Resolution No. 90-132, appropri- ating funds to cover remaining costs of the 1986 flood, was approved; SGH/SALES TAX/ RESO: C. Proposed Resolution No. 90-133, appropri- ating sales tax revenues to Seward General Hospital, was approved; D. Proposed Resolution No. 90-134, supporting recommendations of the Sales Tax Task Force regarding changes to the KPB Sales Tax Code, was MOVED TO THE REGULAR MEETING AGENDA; E. Proposed Resolution No. 90-136, awarding on-call contracts for winter maintenance Seward streets, Nash Road and SMIC, was MOVED TO THE REGULAR MEETING AGENDA; GRANTS/FIRE/RESO: F. Proposed Resolution No. 90-137, accepting a grant from the Rural Community Fire Protection Program, was approved; G. Proposed Resolution No. 90-138, approving an agreement between the city of Seward and the U. S. Government for local cooperation for the Lowell Creek Tunnel Rehabilitation Project, was MOVED TO THE REGULAR MEETING AGENDA; C.ATTY: H. Perkins Coie Invoice for legal services for September 1990 (City v. SSC) totalling $45.47, was approved for payment; I. October 11, 1990, memorandum from Gates requesting authorization to issue an RFP for lease of a ship repair station at SMIC, was MOVED TO THE REGULAR MEETING AGENDA FOR DISCUSSION; 23 PAGE 23 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I J. Change Order No. 1 to the Summit Paving CON- contract to enlarge the culverts on Chamberlain Road was approved; K. proposed land University and AGENDA; Memorandum from Martin regarding a swap and lease extension between the the city was MOVED TO THE REGULAR MEETING L. October 23, 1990, memorandum from Diener regarding the NAPA Auto Parts driveway access was MOVED TO THE REGULAR MEETING AGENDA FOR DISCUSSION; M. October 11, 1990, memorandum from Gates CUSTOMS AGENT: requesting authorization to decline further city involve- ment in the reimbursable Customs Agent program was approved as requested; N. October 19, 1990, memorandum from Gifford regarding the city's investments was noted for informa- tion; I O. October 15, 1990, memorandum from Diener regarding the speed limit at Cottonwood and the Seward Highway was MOVED TO THE REGULAR MEETING AGENDA FOR DISCUSSION; P. Change Order No. 1 to the METCO contract CON- for gravel extraction at SMIC was noted for information; Q. October 24, 1990, memorandum from Murphy requesting cancellation of the November 12, 1990 regular meeting was approved as requested; and C.COUNCIL: Cancellation of Meeting R. October 24, 1990, memorandum from Squires regarding certification of three new volunteer firefight- ers was noted for information. IX. PUBLIC HEARINGS: A. Deleted B. Deleted x. PRESENTATIONS WITH PRIOR NOTICE: I RHONDA ANDERSON-HUBBARD, representing the PRESENTATIONS: Seward Port Development Advisory Committee, stated that the Committee did not want the Councilor public to lose touch with the need for continued improvements to the harbor and docks. She stated that the Harbor was currently full and there was a rather long waiting period for permanent stalls in Seward. She further stated that the Harbor had become so full in summers that it was 2(; PAGE 24 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 almost dangerous. She noted the tying up of vessels five and six deep, as well as congestion associated with the Salmon Derby. Anderson-Hubbard noted that the Port Committee agreed that a new facility was needed, but there was no consensus as to where it should go. She stated that the Committee was somewhat concerned with plans for expanding the Harbor to the south. She said that there were many public concerns which should be addressed to control development so that uplands and park land were not destroyed. Anderson-Hubbard stated that the Port Committee also supported expansion of the SMIC dock facilities to accommodate additional vessels. XI. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: PERS!ORD: 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 SECTION 3.15.090 OF THE CITY CODE TO ACCURATELY REFLECT THE APPROPRIATE RESOLUTION AUTHORIZING CITY PARTICI- PATION IN PERS. 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. 636; THE MOTION WAS SECONDED BY BURGESS. THE QUESTION WAS CALLED, AND THE ORDINANCE WAS ENACTED BY UNANIMOUS CONSENT. 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 CITY CODE SECTIONS GOVERNING DOG AND KENNEL LICENSE FEES AND DOG TAGS. 2;') PAGE 25 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I 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. BURGESS MOVED TO ENACT ORDINANCE NO. 637; THE MOTION WAS SECONDED BY DUNHAM. Meehan stated that he had received several calls regarding this item following the last meeting. He stated that the program was not meaningful at this point with only 26 dogs licensed. He suggested that this item be put aside until the program was more successful. Krasnansky stated that he had heard comments regarding the lack of compliance with the current or- dinance. He suggested that the city get the citizens behind this first. Dunham stated that she saw no problem with raising the cost for unsterilized dogs. I Schaefermeyer stated that the administration felt it appropriate to consider the recommended fee change. He stated that the city was providing a quality animal control program now, adding that a $5.00 increase would not be a disincentive to license a dog. Meehan stated that he agreed that Johnson was doing a very good job. However, he still felt public support was needed for the ordinance. Krasnansky stated that he did feel it was important to license the dogs. He suggested that the ordinance be deferred to a later date. Schaefermeyer suggested that the Council postpone final action to allow the administration to revise the ordinance removing the increase in fees so that other changes could go forward. Sieminski stated that those who did have their dogs licensed were not opposed to the increase, but would like to be protected from those who let their dogs run free. Burgess asked why there were only 21 licensed dogs in town. Schaefermeyer stated that this reflected the lack of enforcement prior to July 1. He stated that any dog picked up by the Animal Control Officer and then claimed by an owner was licensed at that time. I 26 PAGE 26 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 KRASNANSKY MOVED TO POSTPONE ACTION UNTIL NOVEMBER 26, 1990; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITH UNANIMOUS CONSENT. C. Resolutions: 1. Deleted 2 . Deleted INSURANCE/POLICE/ 3. Copies having been made available to R~SO: Au~h~riz~ the public, Noll noted by title only a proposed resolu- lng partlclpa- tion entitled: tion in AML/ JIA Police Liability Prog. STREET MAINT./ CON- /RESO: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHO- RIZING THE EXECUTION OF THE COOPERA- TIVE PARTICIPATION AGREEMENT FOR THE LAW ENFORCEMENT JOINT LIABILITY PROTECTION PROGRAM AMONG ALASKA MUNICIPALITIES THAT ARE MEMBERS OF THE ALASKA MUNICIPAL LEAGUE. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-135; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that this agreement would allow the city's participation in the AML/JIA Police Liability Insurance Program. He added that this would give the city more control over the program. Schaefer- meyer also noted that included in the program was a very aggressive risk control program. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 4. 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, AWARDING ON-CALL CONTRACTS FOR WINTER MAINTE- NANCE OF SEWARD STREETS, NASH ROAD AND SMIC. KRASNANSKY MOVED TO APPROVE RESOLUTION NO. 90- 136 (SUBSTITUTE); THE MOTION WAS SECONDED BY SIEMINSKI. Burgess noted that he was doing some work for METCO on a different project and asked if he should abstain. (He noted that he would gain nothing from this contract.) NOLL RULED THAT THERE WAS NO CONFLICT OF INTEREST WITH REGARDS TO BURGESS. PAGE 27 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I Krasnansky asked if enough money was budgeted for this service. Schaefermeyer stated that, based on past history, the amount requested would be sufficient to see the city through the winter. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 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- ING AN AGREEMENT BETWEEN THE CITY OF SEWARD AND THE US GOVERNMENT FOR LOCAL COOPERATION FOR THE LOWELL CREEK TUNNEL REHABILITATION PROJECT. KRASNANSKY MOVED TO APPROVE RESOLUTION NO. 90- 138; THE MOTION WAS SECONDED BY DUNHAM. I Krasnansky noted references to portions of the maintenance that were the responsibility of the city. He asked if there were a maintenance schedule in the works, and he asked if there would be periodic inspections. Schaefermeyer noted that the Council had earlier appropriated approximately $54,000 in city funds to add to state funds the city was seeking under a declaration of disaster by the Governor. He noted that this money was received from the state; in addition monies were appropriated by the Corps of Engineers. He noted that the city performed an annual inspection of the tunnel. However, the major storm events of the past few years had made it impossible to abide by a regular maintenance schedule. Instead, most work had been restorative in nature, repairing damage caused by flood. He added that this was more appropriately a state and federal responsibility beyond the capability of a city the size of Seward. Krasnansky asked that the Council be provided with periodic inspection reports. Schaefermeyer stated that he would see that these were distributed to the Council. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. I 6. Copies having been made available to the public, Noll noted by title only a proposed resolu- tion entitled: "j1":', ,..! LOWELL n-NNELj CORPS OF ENG.j RESO: Coop.Agrmt. for rehabilita- tion of the tun- nel approved 28 SALES TAX/RESO: Supporting recommendations of the Sales Tax Task Force PAGE 28 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUPPORT- ING RECOMMENDATIONS FO THE SALES TAX TASK FORCE REGARDING CHANGES TO THE KPB SALES TAX CODE. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-134; THE MOTION WAS SECONDED BY SIEMINSKI. Meehan stated that he could not support the resolution since those paying the tax would be those with the most need - the non profit organizations running games of chance and skill. Meehan stated that the non profits would probably absorb the tax themselves rather than pass it on to the purchaser. Burgess concurred. He stated that he had received several calls on this issue. He asked that Chamber Director Carpenter make some comments. Dunham stated that she wished the state would better control pull tab activity. She stated that if organizations would go back to more traditional fund raisers, they would be much better off. Meehan stated that many pull tab operations were not on the up and up. He noted that the newly appointed director of the Dept. of Commerce was at a recent state Elks meeting where he stated that there were only six state inspectors to cover 6,000 operations. WAYNE CARPENTER, Director of the Chamber of Commerce, 325 Fifth Avenue, agreed with Meehan's comments concerning the mathematics of the problem. He stated that the Chamber used pull tabs sparingly. He added that he was more concerned with a couple of other areas. Carpenter stated that he did not object to collecting sales tax for other items besides gaming activities. However, he did object to paying a tax for goods and services purchased by the Chamber. Schaefermeyer stated that, at the prompting of the Council, the city took the lead in seeing that the borough took a hard look at the sales tax code. As a result, KPB Assembly President Skogstad appointed a sales tax committee. He noted that the city'S representative was Finance Director Gifford. Other members of the committee included assembly members, representatives from other cities within the borough, and various businesses. He stated that the current borough code was probably the most inequitable sales tax code in the country. He noted that, prior to 1981, non profits (except 501c-approved) were not exempt from sales tax. Since that time, gaming activity had grown tremendously. He stated that it was 29 PAGE 29 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I unconscionable to him to charge a mother sales tax on milk for her children and not charge someone purchasing a pull tab. He added that it was unlawful for the vendor to absorb the tax; it would have to be added on. He encouraged the city's favorable support. He stated that to fail to support this, the city would send a clear message that Seward did not want to support a fair and equitable sales tax. In response to a question from Noll, Schaefer- meyer stated that the abuses that occurred during the oil spill were currently being addressed, as well as the current $500 cap. He stated that recommendations con- cerning these issues would be forthcoming. Noll asked the status of consideration of the tax on food. Schaef- ermeyer stated that this issue was tied directly to the $500 cap. Until there was some movement towards raising the cap, any exemption for food would have too serious an impact on the revenues generated by the tax. Schaefer- meyer stated that the real issue was where to make up the lost revenue if the tax was removed from food. I Meehan stated that comparing a tax on milk to a tax on gaming permits was unfair. He stated that he appreciated the work of the Task Force, but they needed to look at the whole picture. Dunham asked Gifford if street vendors had been addressed. Gifford stated that this issue had been discussed and would come to Council later. He stated that this issue came first because of a December 31, 1990, sunset clause on the gaming issue. Dunham stated that the $500 cap needed to be raised. Dunham added that purchasing a pull tab did not contribute to the charity or the non profit group. The meeting was recessed at 8:55 p.m. and reconvened at 9:05 p.m. TIM MOFFATT, Exit Glacier Road, stated that he had written a couple of articles in June on the Pull Tab industry and Parents United. He noted that in 1985, the state reported $45 Million in gaming revenues, with $22 Million going to charities. By 1989, revenues had grown to over $100 Million, but only $9 Million was going to charities. RECESS: THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITH FIVE "YES" VOTES AND MEEHAN VOTING NO. I XI1. UNFINISHED BUSINESS: 30 C.ATTY: Options discussed PAGE 30 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 A. Citv Attorney Options. Noll noted that the Clerk had asked for guidance and Meehan had asked for additional input with regards to her (Murphy's) earlier memorandum regarding city attorney issues. Meehan asked the City Attorney to give an actual comparison of capital project costs, litigation costs, cost to litigate & how we fared on various litigation over the past few years. He stated that the information received from the clerk was not totally complete. He asked for a seven to eight year comparison as requested above. Dunham stated that she did not feel the public would be satisfied having Arvidson provide the informa- tion. She also stated that unless the cases were iden- tical, a comparison would be impossible. Meehan asked Arvidson to pull information from his computer as outlined earlier. He specified that this information was to be provided to the city under the regular municipal work umbrella. Sieminski asked that this be postponed until the next meeting to give the Clerk a chance to talk with others at AML to see how this should be approached. Burgess asked if the Homer fees were lower because the attorney did not attend all meetings there. Arvidson stated that the attorney attended about one-half the meetings in Homer. In addition, Homer had substan- tially less development going on. Burgess stated that he would be inclined to put this off until after Municipal League meetings. Krasnansky stated that this had been put off long enough and something should be done about it. Noll concurred. He noted that the Council hires the Clerk, Manager and Attorney. Although the Code outlines the relationship with the Attorney, the Council, in fact, did not manage the attorney, possibly because he was usually not present. He noted that Seward was often compared to Unalaska; however, Unalaska' s legal fees were about 1!10th Seward's. He suggested that the Council hire a consultant to perform a program audit to see if fees were in line and if it was time for in-house representation. He stated that he had spoken to one such firm earlier in the day. Meehan stated that most of the infrastructure in Unalaska was constructed by private industry, not the city. He stated that the city needed a fair comparison. Krasnansky stated that it appeared that Seward could not be compared to other cities. He suggested that PAGE 31 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I the city define what was routine city business and what was to be charged as extra services. Burgess suggested that the Council refer to the memorandum of agreement between the city and the attorney which spells out routine municipal work. B. NAPA Driveway Access. Sieminski asked Diener to explain his memorandum. Diener noted that the only access onto the NAPA property was from Third Avenue. He noted that access onto Port Road would have to be requested from DOT. He further noted that the east side of the property was bordered by Alaska Railroad property. He stated that, should the city seek a permit from ARR to allow access there, the city would assume liability for any accidents occurring on the property. In addition, ARR had asked the city to assist in landscaping the western border of its property to prevent access from the NAPA property. XIII. NEW BUSINESS: I A. Trade Board ApDointments. NOLL NOMINATED WILLARD DUNHAM & DOUG LECHNER FOR REAPPOINTMENT TO THE TRADE BOARD. Council confirmed the appointments without objection. B. Request to issue RFP for lease of ship repair station at SMIC. Noll noted that Jim Pruitt had asked for input on this particular subject. Schaefermeyer noted that the city owned three ship repair stations, with the largest of the three under lease to Seward Ships Chandlery. SSC had also expressed an interest in an adjoining station. One remaining station to the west had elicited the interest of several potential lessees. Therefore, the city felt it appropri- ate to formally solicit proposals on the west repair station to fairly weigh and compare the proposals. JIM PRUITT, Maple Street, introduced Don Whitman, SSC general superintendent, and his newly appointed comptroller. He noted that the ship repair industry was constantly changing, and this required changes on the part of SSC. He stated that it would be in the best interest of everyone for the Council and SSC to meet in a work session to see where SSC and the industry were at this time. I Meehan noted that this subject was brought up at the Port Advisory Committee, and the committee un- animously supported the RFP. 31 TRADE BOARD: Dunham & Lech- ner reappointed '" f'\ .:Jl: LEASES/UA: No obj ect . to pursuing various land issues with Univ. of AK. PAGE 32 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 Burgess stated that he would not object to a work session to see what Pruitt was up to. Dunham stated that she did not object to the work session either. She stated that she would not support efforts on the part of SSC to prevent competition from coming into Seward. Sieminski stated that he agreed that a work session was needed, but the RFP should go out as scheduled. NOLL INSTRUCTED THE CLERK TO SCHEDULE A WORK SESSION FOR NOON, MONDAY, NOVEMBER 19TH. C. University land SWaD and lease extension. Sieminski asked that this item be explained so that the public would understand what was happening. Kerry Martin explained that this had been in the works for about six years. He noted that he was requesting consent to proceeding with a cooperative land trade and lease extension with the University of Alaska for: 1. The transfer of Lots 1-7, Block 23, and Lots 1-7, Block 24, Federal Addition, from the University to the city to become part of the Two Lakes Park; 2. The Extension of the Lease to the Univer- sity for Tract 1, Waterfront Tracts, from 55 years to 99 years; 3. The acceptance of a permi t University for the use of land within the Jap for a fish mitigation project; and 4. The continued support of the vacation of that portion of First Avenue Right of Way on the moun- tainside adjacent to Block 5, Oceanview Subdivision, to teh University. from the Creek area THERE WAS NO OBJECTION FROM THE COUNCIL. D. Speed Limit - Cottonwood Avenue & Seward Highwav. Sieminski asked that this be explained to the public. Diener stated that he was pleased to announce that the speed limit sign had been relocated to 200 feet north of the Cottonwood intersection. He stated that an effort was being mounted to have the sign moved further out to include the Hemlock intersection in the 35 mph section of roadway. Sieminski suggested that a letter requesting moving the sign be sent to DOT with the Mayor's signature. Schaefermeyer stated that he would draft such a letter. XIV. CITY MANAGER REPORTS: 3<) ~) PAGE 33 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 I Gates introduced Bill Shackleton and noted that he was visiting Seward to look at the possibility of locating a hydraulics business here. A. 1990 CamDqround Manaaement Schaefermeyer noted that he had included the Campground Management Report in the packet for tion. Report. FY 1990 informa- Dunham stated that some citizens were concerned that all of the money collected for camping was going to salaries. She stated that the report showed this was not the case. She also complimented the department on obtaining the state grant which allowed the city to hire local youth to clean up the city. Schaefermeyer noted that P&R Director will Josey was retiring effective November 1. He thanked will for the excellent job he had done for the city. He stated that he would be making an announcement shortly concerning his decision on Josey's replacement. Noll added his thanks to Josey and wished him luck. I Schaefermeyer reminded Council Stevens would be in town on 11/2 (Friday) speaking to the Chamber of Conunerce at Restaurant. that Senator and would be the Frontier xv. COUNCIL DISCUSSION: SIEMINSKI suggested that the city get another opinion with regards to the state's lease of the upstairs of city hall. He also noted that the city had not received a bill from the attorney for last month. MEEHAN thanked the administration for re- evaluating the size of the culverts on Chamberlain Road. NOLL noted that the next scheduled Council meeting was November 26th. He also noted that the Clemens Memorial Boardwalk celebration was scheduled for 11/7 at 2 p.m. He invited the Council and public to attend. Noll also noted a consent calendar item which stated that 3 local volunteer firefighters had been certified. He congratulated the firefighters and the Fire Department for their conunitment to the conununity. XVI. CITIZENS' DISCUSSION: None XVI 1. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS : None I XVII I . ADJOURNMENT: 34 ,r!.j'..... \,') .,,:;' ~ s ;j 9 ~ ~~. '<.-' J. ".--:( \.' : ,,'11 ._.~_ \, ,. >~ :g . "\~!j <)/'"'' ,," ....<:~:;',/ PAGE 34 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26 The meeting was adjourned at 10:20 p.m. and, following a short recess, the Council reconvened in Executive Session to discuss a personnel matter and legal issues. -"'~ .,. .11" ~"'" C,~~ W~l ~am C. No Mayor (City Seal) PAGE 34 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 I. CAT.T. TO ORDER: The November 7, 1990, special meeting of the Seward City Council was called to order at 12:11 p.m. by Mayor William C. Noll. II. OPENING CEREMONY: Tim Moffatt led the pledge of allegiance to the flag. III. ROLL I"!AT.T.: Present were: Mayor Noll and Councilmernbers Burgess, Dunham, Hilton, Kras- nansky, Meehan and Sieminski Present also: City Manager Schaefermeyer, Assistant City Manager Yanez, Finance Director Gifford, Com- munity Development Director Martin, Police Chief Bencardino and City Clerk Murphy (City Attorney Arvidson and Rivers' attorney George Dickson parti- cipated in the meeting via tel- econference) IV. APPROVAL OF SPECIAL MEETING AGENDA: HILTON MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: None I I I PAGE 35 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 V1. SPECIAL ITEMS: A. ProDosed susDension of Yellow Cab's permits to ODerate vehicles for hire within the city. Dickson asked if Council had read Rivers' affidavit and if Rivers was present. Schaefermeyer responded that the answer to both questions was "yes". Schaefermeyer noted that several arrests of suspected drug dealers had been made last week. Two of those arrested were charged with selling cocaine from taxicabs owned and operated by Rivers (Yellow Cab Company of Seward). In response to these arrests, and under authority of Seward City Code Section 8.20.085, Bencar- dino revoked Rivers' permits to operate taxicabs effec- tive Midnight, October 31st. On Thursday (U/1), Dickson contacted Schaefermeyer and asked that he revoke the suspension pending a hearing before the Council. Bencardino's original letter was amended by the Ci ty Manager to read "suspension pending a hearing" before the Council. A copy of this letter was provided to Dickson along with a request that Dickson contact Arvidson to schedule the hearing. Arvidson then provided a letter to Bencardino and Schaefermeyer recommending that the permits be reinstated pending a due process hearing. This recommendation was based on the length of time it would take to schedule the hearing. Schaefermeyer directed Arvidson to submit a letter to Dickson reinstat- ing the permits pending a formal hearing and decision by the Council on this matter. Arvidson and Dickson had agreed to schedule the hearing on either November 27th or December 3rd. In response to a question from Noll, Schaefermeyer read from Section 8.20.085 of the City Code which grants the city the right to suspend or revoke taxicab permits if the owner, agent or employee of the owner is charged with or convicted of a violation of city, state or federal law. Murphy explained that permits are issued administratively if the permittee has the proper in- surance and if the vehicles pass an inspection by the city vehicle inspector. Arvidson asked if Council had letter to Schaefermeyer and Bencardino. that they had. received his Murphy stated Noll stated that he had requested this meeting after several members of the community had asked that this policy issue be taken up by the Council. MEEHAN MOVED TO UPHOLD THE CITY MANAGER'S DECISION TO REINSTATE THE PERMITS UNTIL A HEARING CAN BE "IF:' ~I;) VEHICLE FOR HIRE PERMITS: Yellow cab permitted to continue to operate until Council made a decision re- garding status of the permits. Hearing sched. for 11/26/90. 36 PAGE 36 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 HELD IN LATE NOVEMBER OR EARLY DECEMBER; THE MOTION WAS SECONDED BY HILTON. Meehan stated that based on what he had read, the City Manager had done the proper thing. He stated that he firmly believed that it was a business person's right to have a hearing before they were found guilty of wrong doing. Burgess concurred with Meehan. He stated that the city should follow advice of Counsel at this time. Dunham also concurred. She stated that she did not want to find the owner guilty until proven so. Hilton agreed with the previous remarks. He stated that while two drivers were charged, they had not been convicted of a crime. He noted that to revoke the permit at this time was premature. Krasnansky agreed wi th Bilton. Noll stated that the licenses were provided administratively by the city. He noted that the city had been visited with several tragedies in the last few years including a suicide in the city jail. The city had been found negligent in this case although no city employee was found to be at fault. He suggested that an overdose of drugs supplied by a driver of a taxicab licensed by the city could result in a suit against the city for wrongful death. He stated that this was one reason for the meeting today. Schaefermeyer stated that the city was always subject to suit. However, he was not convinced that the ultimate resolution of the suit hypothesized by the Mayor would show responsibility on the part of the city. Schaefermeyer stated that he had weighed the consequences suggested by the Mayor against the constitu- tional requirements of due process, and, in his opinion, Rivers' constitutional rights took precedence. Arvidson stated that the prospect of some terrible drug dealing operation extending throughout the business (based on the arrest of two drivers) supplied ample justification for the initial suspension. However, on reflection, and because of the length of time between suspension and the hearing, the second action was warranted. Arvidson also noted that, by issuing the permits, the city was not guaranteeing absolute safety to passengers of the taxicabs. Be stated that the duty to supervise the day to day operations of the cab company I I I 37 PAGE 37 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 was a very minimal one and did not outweigh the due process provisions of the constitution and the right of the owners to operate the business. In response to a question from Noll, Arvidson stated that there were books setting out a huge set of rules on due process. At a minimum, the other side was entitled to adequate notice and an opportunity to be heard in a reasonable period of time. He stated that it would be unreasonable to have the hearing on less than 20 days' notice. Noll asked under what conditions the city would have the right to immediately revoke or suspend a permit. Arvidson stated that an immediate threat to the life or safety of the public would make such a suspension appropriate. Noll suggested that the Council take testimony from the Yellow Cab owner, her attorney or others who might want to testify. He also requested that the Manager or Attorney advise the Council as to what type of action they were suggested. Dickson stated that he felt the City Council had spoken very effectively. He stated that .suspension of the license to operate until the hearing would destroy the business before a hearing could be held. DIANE RIVERS, owner of Yellow Cab Company of Seward, stated that she had been in business in Seward since 1987. During this time, she had employed over 100 employees. Of these, two drivers were charged with selling drugs. She asked what she could have done to prevent this from occurring. She noted that the Police Department issued chauffeur's permits to the drivers. She stated that she had provided a service to the community and she had other employees who relied on her company for their livelihood. She added that she objected to punishing her other drivers for what two had done. CHRISTINE BOND, Bear Creek, Box 2436, Seward, stated that she had lived in Alaska since 1975. She stated that what the other two drivers had done should be no reflection on her or her children. NEIL WINFIELD, 510 A Street, member of the crew of the Mustang and under contract with Yellow Cab to drive taxi on a part time basis, stated that he was happy that those guilty of selling drugs had been arrested, but he objected to revocation of the Yellow Cab permits to operate since this would penalize innocent employees of the cab company. CRYSTAL HETTRICK, 208 Brownell, Yellow Cab was her only source of income. stated that She stated 38 PAGE 38 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 that she was a single parent raising a child and she needed this job. RICHARD VAUGHAN, Bear Creek RV Park, part time driver for Yellow Cab, stated that he did not deal in drugs and did not feel that he should have to pay because two others had been arrested. BOB WHITE, Resurrection Road, asked how the city could revoke Yellow Cab's permits to do business when the owner had not been charged. Schaefermeyer stated that Arvidson had sug- gested that a special meeting be conducted on either November 27th or December 3rd at Noon. Dickson would submit any written statements to the Clerk by the Tuesday prior to the hearing, with rebuttal due on the Friday prior to the meeting. Burgess stated that, if due process was not given, the City could be involved in a nasty and expen- sive lawsuit. Dunham stated that on at least three occasions citizens had come to her about drug dealing in Seward which they had witnessed, yet they would not go to the police. She stated that these were probably the same ones who had called the Mayor with complaints about the cab company. She stated that the city had done what it had to do when it reinstated the permits. Meehan stated that he did not want to send a message that the city was soft on drugs, but rather that the city was strong on a fair judicial process. Krasnansky stated that this was an unfortunate situation. However, judging from letters supplied by Yellow Cab, they should be commended for service to the community. He noted that he was concerned with the way the ordinance was written and added that being charged with a crime was not a just reason to revoke a permit. Noll stated that people were encouraged by the drug arrests last week. He stated that some who had been silent in the past may not be silent any longer. He said that people have now asked that the city find a way to clean up the drug problem at school. Noll stated that it was the Council's responsibility to live up to the Code, or at least examine it periodically. Murphy explained that a "yes" vote would allow Yellow Cab to continue to operate until the formal hearing before the Council. A "no" vote would not change ')0, Vv' PAGE 39 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 I anything unless it was followed by a motion to reinstate the suspension. THE QUESTION WAS CALLED AND THE MOTION CARRIED WITH SIX YES VOTES AND NOLL VOTING NO. VII. COUNCIL DISCUSSION: None VIII. CITIZENS' DISCUSSION: DIANE RIVERS, Mile 3.5, Seward Highway, stated that contrary to assertions made earlier in the meeting, no charges had been filed against her or her company. She noted that the Council had recently complained about legal fees, yet the Council had called this completely unnecessary hearing which could result in increased fees for the city. WAYNE CARPENTER, 325 Fifth Avenue, stated that the 2: 00 Dale Clemens Boardwalk Dedication had been rescheduled to Sunday afternoon at 2:00 p.m. IX. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: I Schaefermeyer asked for Council' s direction regarding a date for the hearing. Dickson stated that he should know by the end of the week if his November 26th trial was going to occur. Burgess stated that he would prefer the 26th or sooner. Dunham had no preference. Krasnansky & Sieminski requested the 26th. Hilton suggested an evening meeting rather than Noon since this matter was likely to take more than an hour to complete. In response to a question from Noll, Dickson stated that the length of the hearing would depend on the type of evidence submitted by the City. Hilton asked Arvidson if holding this sort of a hearing was premature until such time as the drivers arrested and charged were convicted. Arvidson stated that this was not the case. He stated that the standard of proof in a criminal trial was different than that required in this type of hearing to act on the permits. Noll suggested that a one and one-half hour maximum meeting be scheduled at Noon on November 26th. If this did not allow sufficient time, the hearing would be continued to another date. Everyone concurred. I x. ADJOURNMENT: ~:o PAGE 40 SPECIAL MEETING - NOVEMBER 7, 1990 VOLUME 26 The meeting was adjourned at 1:30 p.m. ~~, '" C' , . " (~~ wrt~ ~am C. No Mayor ~ f " ~. ,';~~~'~~ '"; . , " .....,., .~~.J ,.' .1. ",' ~ " " "'0('" . '4~ ~~",C~~~ . . .~ \ ?--...... . ~'~ ~""' ',,r. ~. "-'-rrT!!'" - NOVEMBER 26, 1990 VOLUME 26 I. CALL TO ORDER: The November 26, 1990, special meeting of the Seward City Council was called to order at 12:08 p.m. by Mayor William C. Noll. II. OPENING CEREMONY: Councilmember Krasnansky led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and Councilmembers Burgess, Hilton, Krasnansky, Meehan and Sieminski (Dunham was absent) Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Finance Director Gifford, Po- lice Chief Bencardino and City Clerk Murphy (George Dickson, counsel for Diane Rivers, par- ticipated telephonically) IV. APPROVAL OF SPECIAL MEETING AGENDA: MEEHAN MOVED TO APPROVE THE SPECIAL MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY BURGESS. Schaefermeyer asked that Council add Resolution No. 90-149 to the agenda for consideration as Item VI.A, renumbering existing Item A as B. THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. V. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: PAGE 41 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 I TROY BUCKMAN, 1802 Phoenix, stated that he had, on three separate occasions, reported to Diane Rivers that drugs were being sold from her cabs and had been told that this was none of his business. In response to a question from Meehan, he stated that he had contacted Rivers in 1988 and 1989. JOHN SKARSVOG, 1010 Third Avenue, stated that, in his opinion, an employer should be held liable for the actions of his employees while on duty. He added that he was concerned about the safety of people in Seward. CHRISTINE VAUGHAN, Bear Creek Trailer Park, stated that she was an employee of Yellow Cab and did not feel it was fair to punish all employees and the cab company for the actions of a few individuals. RICHARD VAUGHAN, Bear Creek Trailer Park, stated that he was a past employee of Yellow Cab, and to his knowledge, none of the cab drivers were driving under the influence. I JAMES WEAVERLING, 1013 Fourth Avenue, stated that he would like to reserve comment until later in the meeting. He said that, as a representative of Indepen- dent Cab, he agreed that random drug testing was impor- tant, but the city should bear the cost of the testing. V1. SPECIAL ITEMS: 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, INDEFI- NITELY POSTPONING A HEARING ON THE VEHICLE FOR HIRE PERMIT OF YELLOW CAB COMPANY OF SEWARD AND AUTHORIZ- ING THE CONCLUSION OF A VOLUNTARY DRUG TESTING PROGRAM TO BE USED AS A MODEL FOR VEHICLE FOR HIRE BUSINESS- ES IN SEWARD. MEEHAN MOVED TO APPROVE RESOLUTION NO. 90-149; THE MOTION WAS SECONDED BY BURGESS. I Schaefermeyer stated that the resolution before the Council came about as a result of discussions among Schaefermeyer, Yanez, Arvidson and Dickson. Arvidson had drafted a proposed agreement between Yellow Cab and the city which would have provided that Yellow Cab partici- pate in a model drug testing program which would be used as a model for drug testing of all employees of holders 41 RESO/YELLOW CAB: Failed 42: PAGE 42 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 of vehicle for hire permits/chauffeurs licenses. However, as of Wednesday, Rivers was not prepared to accept the agreement which would be adopted via Resolu- tion No. 90-149. Therefore, included in the packet was a memorandum from Schaefermeyer setting forth his recommendation that the Council adopt Resolution No. 90- 149, giving Yellow Cab a chance to accept the agreement. If they chose not to do so, the matter could come back to the Council in January for formal hearing and disposi- tion. Schaefermeyer noted that a second option was to go forward with today's hearing. Sieminski stated that he had no problem with drug testing if it were presented to the city as an ordinance. However, he did not see how the resolution addressed this problem. He said the city should make a stand now and not postpone the hearing. Schaefermeyer stated that Resolution No. 90-149 would settle the matter by approval of an agreement which would result in the development and implementation of a drug testing program for the taxicab industry doing business in the city. If the agreement was signed by Yellow.Cab, it would negate any need for further hearing on the matter. By January 15th, the city would have a drug testing program in place for all those holding city issued chauffeurs licenses. If Yellow Cab did not accept the terms of the agreement, there would be an opportunity for the Council to hear the matter at a later date. In response to a question from Sieminski, Arvidson stated that, if the agreement were concluded, it would serve as a model agreement which could be consid- ered as an ordinance amendment to require all companies having city vehicle for hire permits to participate in drug testing. Meehan referred to Sections 1, 2 and 3 which directed the clerk and attorney to draft an amendment to the Code which would require drug testing and prevention programs for those issued permits under the vehicle for hire ordinance. He stated that this approach seemed to be a reasonable one and he would support it at this time. Dickson stated that when this hearing was called by the Mayor on November 6th, he understood that both sides were to have their information in to the other side by Monday, November 19th. However, he had not been provided information by the city until last Friday. Burgess stated that the program suggested by the administration was a good one. However, if a person was a dealer and not a user, this system would not catch him. He added that this was a good first step. I I I 41) "V PAGE 43 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 Krasnansky concurred with Burgess regarding the apprehension of dealers who did not use drugs. He stated that he had no problem with a private company requiring testing of employees, but he had a problem with the government requiring the testing. DIANE RIVERS, owner of Yellow Cab, stated that the resolution and memorandum from the City Manager were received late last week. She noted that the resolution was headed in the right direction, but she didn't know what would be included in the proposed agreement. She also objected to Section 3 which required her attorney to work on the drafting of a city ordinance, stating she could not afford his time for this effort. She stated that she wanted to get this behind her, and she objected to any postponement of the hearing process. GEORGE DICKSON, attorney for Yellow Cab Company of Seward, stated that he did not feel that revocation of the permits was warranted. He also objected to a requirement that Rivers enter into the agreement or risk losing her license to operate. NOLL SUGGESTED AN AMENDMENT TO SECTION 4 OF THE RESOLUTION, AMENDING IT TO READ AS FOLLOWS: SECTION 4. THE HEARING SET FOR NOVEMBER 26 AT A SPECIAL MEETING OF THE CITY COUNCIL IS HEREBY INDEFINITELY CONTINUED, AND IT SHALL BE CANCELED UPON CONCLUSION OF A WRITTEN AGREE- MENT BETWEEN THE CITY AND YELLOW CAB AND THE APPROVAL OF THAT AGREEMENT BY THE CITY COUN- CIL. THERE WAS NO OBJECTION FROM THE COUNCIL. Meehan stated that it was clear that all chauffeurs in the city would come under the drug testing program, not just those employees of Yellow Cab. Sieminski asked what would happen if Yellow Cab did not enter into the agreement. Arvidson stated that the city could still amend the Code to require a man- datory drug testing program of all vehicle for hire permittees. The intent of the resolution was to involve Yellow Cab in drafting the drug testing program regula- tions. Hilton stated that he did not see the purpose of the resolution. Instead, he felt the city should go forward with a review of the ordinance and drafting of an amendment to require drug testing, basing renewal of the vehicle for hire permits on proof that all employees had been screened for drugs and alcohol. 44 YELLOW CAB: YC placed on monitored status until 06/30/91. PAGE 44 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 In response to a question from Hilton, Schae- fermeyer stated that a resolution was not necessary; however, it would afford an opportunity for Yellow Cab to participate in the development of the program or policy implemented as a part of the City Code to regulate the issuance of chauffeurs licenses and vehicle for hire permits. He stated that the resolution was meant as a pro-active, positive approach to this issue. Hilton stated that he would like to see mandatory drug testing for those involved in the vehicle for hire business, and he would encourage those in the business to become involved in drafting these changes to the ordinance; but, it was time to get back to the issue of whether the permit should be revoked. Noll stated that the resolution appeared to be direction from the Council to the administration to draft changes to the ordinance to provide for drug testing. He stated that although the city had the right to revoke or suspend the Yellow Cab permits, the administration was suggesting a less harsh approach to include an amendment to the vehicle for hire ordinance. THE QUESTION WAS CALLED, AND THE RESOLUTION FAILED WITH HILTON, SIEMINSKI AND KRASNANSKY VOTING "NO" AND MEEHAN, BURGESS AND NOLL VOTING "YES". B. Consideration of action regarding vehicle for hire Dermits held bv Diane Rivers. dba Yellow Cab ComDany of Seward. Schaefermeyer stated that the Council had the option of continuing with the hearing and disposing of the issue today, or the Council could postpone or continue the hearing until after the holi- days. Hilton suggested that the Council deal with the issue at hand - whether to suspend the permits. In addition, he suggested that the Council give instructions to administration regarding amendments to the existing ordinance, inviting all permit holders to take an active part in the process of drafting the new language. Arvidson stated that the permit had been temporarily suspended pending investigation and the Council taking action. The permit was reinstated within two days of that time it was suspended. Dickson stated that the motion which should be presented was a motion to revoke the permit. Hilton stated that the Council also had an option to take no action. 45 PAGE 45 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 I Schaefermeyer stated that the Council had virtually all options before them. 1) No action; 2) Place permit in probationary status, requiring that permit holder's business be free of drug-related activity for a period of time; 3) suspension of permit 4) revocation of permit. Arvidson stated that the notice of hearing stated that the Council would meet to determine "what action if any" would be taken. Hil ton stated that he would like to pursue Option 2, placing Yellow Cab on a one-year probationary status in accordance with Schaefermeyer's memorandum to Council. He stated that Rivers' comment that she cannot be responsible for her drivers' actions was not valid. I HILTON MOVED TO PLACE YELLOW CAB COMPANY ON A ONE-YEAR PROBATIONARY STATUS WHEREIN THE COMPANY PERMIT TO CONTINUE VEHICLE FOR HIRE OPERATIONS IN THE CITY UNDER CITY PERMIT CAN BE REVOKED FOR AN INDEFINITE PERIOD SHOULD A DRUG-RELATED INCIDENT BE VERIFIED BY LAW ENFORCEMENT AUTHORITIES OR SHOULD A YELLOW CAB EMPLOYEE BE ARRESTED WHILE ON DUTY FOR ANY DRUG OR SUBSTANCE ABUSE VIOLATION, AND FURTHER THAT THE CITY COUNCIL PURSUE AN ORDINANCE THAT WILL REQUIRE ALL FUTURE VEHICLE FOR HIRE PERMITTEES TO PRESENT DRUG TESTING RESULTS OF ALL DRIVERS EMPLOYED BY THE COMPANY SEEKING THE PERMIT AND THAT A RANDOM TEST BE REQUIRED OF THE EMPLOYEES DURING THE COURSE OF A YEAR, WITH NEGATIVE RESULTS FOR BOTH INITIAL AND RANDOM TEST REQUIRED BEFORE A PERMIT WILL BE ISSUED OR CONTINUED; THE MOTION WAS SECONDED BY SIEMINSKI. RECESS: The meeting was recessed at 1: 20 p.m. and reconvened at 1:36 p.m. Noll noted the motion on the floor. Krasnansky asked if a probationary status was covered under the existing ordinance. He referred to Sec. 8.20.085 of the City Code. Arvidson stated that probation was less than revocation, and if the Council had the power to revoke, it had the power to place a permit in probationary status. He suggested that any revocation or suspension which occurred during the probationary status would require a hearing before the Council. Arvidson further suggested an amendment to the motion that the permit could be suspended or revoked only by action of the Council. I Krasnansky stated that there was a problem with the current vehicle for hire ordinance, stating that the ordinance should be amended to make the penalty provi- sions more specific. He noted that drug testing should 46 PAGE 46 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 be mandatory for anyone carrying passengers or property for the public. Hilton agreed with Krasnansky that there were problems with the existing ordinance. However, it was within the Council's right at this time to place this particular permit on probation. HILTON MOVED TO AMEND HIS MOTION TO INSERT "BY ACTION OF COUNCIL" FOLLOWING "CAN BE REVOKED"; THE MOTION WAS SECONDED BY SIEMINSKI. In response to a question from Noll, Murphy stated that the Mayor could stipulate, if there was no objection from the Council, that a "yes" on the main motion would carry the amendment. Meehan agreed that the amendment was ap- propriate and stated that he would support the motion to approve Option No.2. Dickson stated that Rivers was in the process of obtaining a loan for her business, and a probationary status would make the loan impossible to obtain. He stated that the Council should vote on the revocation question and should look at amending the ordinance. He also reminded Council that findings must be made. KAREN BOBACK, 308 Adams St., a new driver for Yellow Cab, stated that she would feel better if permits were either reinstated or revoked. She stated that she did not feel probation was appropriate since it implied that the other drivers were suspects. She stated that it was not fair for Rivers to be responsible for the actions of her drivers. Burgess asked for Arvidson's reactions to Dickson's statements. Arvidson stated that if action was taken, findings of facts and conclusions of law would be drafted and presented to the Council for approval at a later meeting. He stated that the probation would not pose any greater risk to the Cab Company than the rules under which they were already operating. However, it was a concern of the administration that positive action be taken. Noll stated that the probationary status was no different than living under the current ordinance. Arvidson stated that there was no real difference except that the probation provision under Option 2 expressed the Council's grave concerns with regards to this situation. He noted, however, that it did not make a legal differ- ence. I I I 47 PAGE 47 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 Schaefermeyer stated that he wanted to clarify that the two Yellow Cab drivers were arrested for drug buys made on the premises of Yellow Cab while the drivers were on duty. Meehan stated that the amendment to Hilton's motion actually made it more difficult to revoke a permit, since action of Council would be required. (Under the Code, the city manager or police chief could revoke without coming to Council.) He noted that Rivers was responsible for the actions of her drivers while on duty and operating her cabs. Noll asked for clarification of Dickson's statement that probation infers guilt. Arvidson stated that, if taken in the context of criminal procedure, probation did mean guilt. However, this was not a criminal matter, but action on a permit issued as a privilege of the permit holder to offer a service to the community. He stated that Dickson was confusing criminal and civil procedures. Noll suggested that the word "probation" be changed to "monitored status~. He also suggested that the one-year time frame be modified to reflect one year from the date this whole thing started. Noll further suggested that the one year might be reduced. Krasnansky stated that he could not support the resolution or this motion no matter how it was presented. Sieminski asked if an Executive Session was proper at this time. Murphy stated that this was not a proper subject for executive session; Arvidson concurred. He stated, however, that he could provide a confidential memorandum to the Council setting forth the risks associated with the action under consideration. Noll indicated that either Hilton, sieminski or Krasnansky could move for reconsideration of the resolution. Sieminski suggested postponement until January 14th. Krasnansky stated that there was no question that the city was serious about the drug problem; however, now was the time to take a strong stand for due process and civil rights. HILTON MOVED TO AMEND HIS ORIGINAL MOTION BY CHANGING THE WORD "PROBATIONARY" TO "MONITORED"; THE MOTION WAS SECONDED BY SIEMINSKI. HILTON MOVED TO CHANGE THE ONE YEAR TERM TO "UNTIL JUNE 30, 1991"; THE MOTION WAS SECONDED BY SIEMINSKI. NOLL STIPULATED THAT A YES ON THE MAIN MOTION WOULD CARRY ALL AMENDMENTS; THERE WAS NO OBJECTION FROM THE COUNCIL. 48 PAGE 48 SPECIAL MEETING - NOVEMBER 26, 1990 VOLUME 26 Meehan asked who was to monitor the cab company. Noll stated that the monitoring would be at the same level as under the existing code. Burgess stated that he would support the motion. He noted that no one was being punished and he did not want this to say that the city condoned the prior actions of the drivers. THE QUESTION WAS CALLED, AND THE MOTION WAS APPROVED AS AMENDED WITH FIVE "YES" VOTES AND KRASNANSKY VOTING "NO". VIr. COUNCIL DISCUSSION: Krasnansky stated he did not see the point of the action just taken. Noll stated that the Council resolved to do something in part one of the motion that was already being done. However, the second part of the motion gave direction to the administration to develop a drug testing program for all vehicle for hire permit holders. VI II . CITIZENS' DISCUSSION: JAMES WEAVERLING, 1013 Bayside Apartments, stated that drug testing should cover bus drivers, school bus drivers, and anyone else who carries passengers for hire. He stated that safety was the number one factor, and the new regulations should cover all public transpor- tation carriers in Seward. DIANE RIVERS, Mile 3.5, Seward Highway, objected to the action taken by the Council. RICHARD VAUGHAN, Bear Creek RV Park, asked what responsibility he had if a passenger of his was arrested for possession of drugs. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: MEEHAN stated that anything dropped in a cab could be turned over to the police department. IX. x. ADJOURNMENT: ...<-- .,.;; .... , .,' fJ' \) :: . " ~ e ~. '~ '.. ':".,.J ~?~ meeting was adjourned at 2:29 p.m. i~Q~~~~ ~:::~:-N~~l Mayor 49 PAGE 49 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 I Ie CALL TO ORDER: The November 26, 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: Councilmember Sieminski led the pledge of allegiance to the flag. III. ROLL CALL: I IV. Present were: Mayor Noll and Councilmembers Burgess, Dunham, Bilton, Kras- nansky, Meehan and Sieminski Present also: Ci ty Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and Utilities Manager Diener, Port Marketing Director Gates, Fire Chief Gage, Finance Director Gifford, Harbormaster Singleton, Librarian Nicolas, Police Chief Bencardino and City Clerk Murphy APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE OCTOBER 29 AND NOVEMBER 7, 1990, MINUTES AS WRITTEN; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted the Resolution No. 90-148 name change. MEEHAN MOVED TO MEET IN EXECUTIVE SESSION FOLLOWING THE REGULAR MEETING TO DISCUSS PENDING LITIGA- TION; THE MOTION WAS SECONDED BY DUNHAM AND WAS APPROVED BY UNANIMOUS CONSENT. I Krasnansky asked to move Items D, E, Hand N from consent calendar to regular meeting agenda. Noll ruled that both Bilton and Krasnansky must abstain on Item E ( a hospital issue); therefore Krasnansky could not ask to pull that particular item. Dunham noted that she would abstain from voting on Item D (contract with Seward Invoices from Perkins Coie were approved follows: August 1990 - $16,526.50 September 1990 - 17,294.00 HEALTH B. Proposed Resolution No. 90-140, requesting that the Governor of Alaska take steps to resolve the Mental Health Trust land dispute was approved; 50 C.ATTY: RESO/MENTAL LANDS SUIT: PAGE 50 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 Phoenix Loa), since she was a party to a financial agree- ment with the owner/editor. THE REGULAR MEETING AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. VI. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Jonathan Sewall reported on the last regular meeting of the Borough Assembly. 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 BURGESS AND CARRIED UNANIMOUSLY, EXCEPT THAT HILTON AND KRASNANSKY ABSTAINED ON ITEM NO. "E". The following actions were taken: A. for payment as C. Proposed Resolution No. 90-141, changing the name of Cottonwood Avenue to Sea Lion Avenue was STREETS/RESO: Changing Cottonwood approved; to Sea Lion Ave) AB-y. . / C0U REBO. l.eg ~tFIl\lt ' I I COM.HOSP.BOARD/ RESO: UNIV.M.A.P./ RESO: EXIT GLAC.RD/ RESO: D. Proposed Resolution No. 90-142, approving a contract with The Seward Phoenix Loa for city display advertising was moved to the regular meeting agenda as Item XIC4; E. Proposed Resolution No. 90-143, appropri- ating funds to Seward General Hospital to help defray the cost of the Community Hospital Board's training retreat was approved; F. Proposed Resolution No. 90-144, requesting increased services from the University of Alaska Marine Advisory Program was approved; G. Proposed Resolution No. 90-145, supporting the reconstruction of Exit Glacier Road as proposed by the Federal Highway Administration was approved; PAGE 51 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 I H. Proposed Resolution No. 90-146, approving the Chugach Electric Association, Inc., Equity Management Plan was moved to the regular meeting agenda as Item XIC5i 51 0:8:. 8E'I"PLEJ,IEH'f I REEl€). I. ABCB notification of application for ABCB: renewal of the following liquor licenses were noted and the Clerk was instructed to issue letters of non-objec- tion to their renewal: NIKO'S MARINA'S RESTAURANT J. Summit Paving Change Orders were noted for CON- information as follows: CO 13, Phase I - Remove and dispose of excess asphalt and concrete for gutter and curb replacement (+$1540.63) CO 12, Phase II - Culvert Upgrade (+$4647.50) K. Application for permit for games of chance and skill as filed by SEWARD IDITAROD TRAILBLAZERS was noted for information; I L. Recommendations of the KPB Sales Tax Task Force were noted for information; M. Memorandum from Diener regarding the Iditarod Trail was noted for information; and N. First Quarter FY 1991 Financial Reports were moved to the regular meeting agenda as Item No. XIIIA. IX. PUBLIC HEARINGS: None X. PRESENTATIONS WITH PRIOR NOTICE: GAHES OF CHANCE & SKILL PE1'l.HITS: A. SANDRA WASSILIE, President of the Seward PRESENTATIONS: Schools Parent Advisory Committee, presented a resolution of the PAC urging construction of a pedestrian pathway on Swetmann Avenue. She stated that this could easily be tied into the Iditarod National Historic Trail which was proposed to be paved next season. In addition, she noted that the pedestrian way was needed to protect students and others who walked along Swetmann, especially during the winter months when visibility was limited and snow berms along the sides of the road covered any off-road pathway which might be taken. Schaefermeyer stated that the city administration was also concerned about this roadway and the dangers it presented. He stated that the city would propose a wide sidewalk be constructed from the highway to the school since there was sufficient right of way for such a project. He noted that cost of I 52 ANIMAL CONTROL/ RESO: Setting --new fees PAGE 52 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 the project would probably total 100,000 for sidewalk, curbs and gutters. He stated that the Council could incorporate this project in the FY 91 legislative funding projects list to be considered later in the meeting. Meehan stated that he was pleased to see the PAC represented at the meeting and he agreed that this sidewalk or bike path was long overdue. He concurred that this was a good project for the city's CIP priority list. Burgess stated that he would like to see something done in this area before someone was hurt or killed. He noted that there was a similar problem in Gateway Subdivision on Dora Way. He asked about the possibility of revising the city's subdivision ordinance to require sidewalks, curbs and gutters in all subdivi- sions. Dunham concurred with Meehan and Burgess. B. JIM PRUITT, Seward Ships Chandlery, was not present. Don Whitman, manager of SSC, stated that SSC had no objection to the issuance of an RFP to develop and operate the remaining ship repair station at SMIC. X1. ORDINANCES AND RESOLUTIONS: A. Ordinances for Introduction: None B. Ordinances for Public Hearing & Enact- ment: 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 CITY CODE PROVISIONS GOVERNING LI- CENSING AND FEES FOR DOG KENNELS AND TAGS. 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. Murphy noted that a motion to enact was on the floor. MEEHAN MOVED TO AMEND THE ORDINANCE AS NOTED IN THE STAFF MEMORANDUM CHANGING THE FEE FOR NEUTERED/SPAYED DOGS TO $5.00 AND FOR UNNEUTERED/UNSPAYED DOGS TO $10.00; I I I PAGE 53 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 THE MOTION WAS SECONDED BY BURGESS AND CARRIED WITHOUT OBJECTION. THE ORDINANCE WAS APPROVED AS AMENDED WITHOUT OBJECTION. 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, AUTHO- RIZ ING THE PURCHASE OF EQUIPMENT AND SUPPLIES FOR FIRE DEPARTMENT SUPPORT TRUCK FOR SMIC AND APPROPRIATING FUNDS. HILTON MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-139; THE MOTION WAS SECONDED BY KRASNANSKY. Schaefermeyer noted the staff memorandum in the council packet. He stated that this request was to augment the city's response equipment to meet fire fighting needs in the SMIC area. He noted that a used fire truck and a used van had been purchased. This resolution would appropriate funds to outfit the van with lifesaving gear and gear for the fire fighters. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 2. 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, ADOPTING THE FY 1991 CAPITAL IMPROVEMENT PROJECTS PRIORITY LIST FOR THE 1991 STATE LEGISLATIVE SESSION. KRASNANSKY MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-147; THE MOTION WAS SECONDED BY BURGESS. Noll asked if Krasnansky and Hilton would have to abstain on this issue since a new hospital was the number one priority on the list. Arvidson stated that whether the hospital was funded or not would not affect the employment status of either councilmember. NOLL RULED THAT NO CONFLICT EXISTED WITH REGARDS TO THIS MATTER. ~0 ~),j. PURCHASING/FIRE/ RESO: Equipment for SMIC Suppor' truck CIP/RESO: Adopt. 1991 Capita.! wish list 54 PAGE 54 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 Krasnansky suggested deleting the ambulance from the list since the Seward Volunteer Ambulance Corps has saved monies to purchase a new ambulance and asking for $100,000 for the sidewalk instead. Hilton stated that SVAC has saved about $35,000. He noted that most ambulance grants required matching funds. Hilton suggested that the city complete the project for the sidewalk with city funds. He noted that now might be the time to raise taxes to begin to provide some of the city's needs. Sieminski asked what would happen if the state bonded for rural hospital needs and funded the new hospital out of that fund. He asked if the city could then have another number one priority. Krasnansky stated that the bike trail and sidewalk should be combined and placed in the number two position. In response to a question. from Noll, Schaefer- meyer stated that he had not discussed this item with the ambulance corps. He stated that the existing ambulances were aging. He added that the city should retain ownership of the ambulances so that some controls could be maintained. Schaefermeyer noted that the city currently had an agreement with SVAC for operation of the ambulance service. DUNHAM MOVED TO AMEND THE PROJECTS LIST BY COMBINING THE TRAILBLAZERS BIKE TRAIL AND THE EXTENSION OF THE TRAIL FROM THE BOARDWALK TO THE SCHOOLS AS A $200,000 PROJECT AND TO MAKE THIS THE NUMBER TWO PRIORI- TY; BURGESS SECONDED THE MOTION. THE QUESTION WAS CALLED AND THE AMENDMENT WAS APPROVED BY UNANIMOUS CONSENT. Dunham noted that this amendment would require amending the Project Descriptions language. Hilton asked that changed from "long term" facility. the hospital description be facility to "acute care" Krasnansky stated that those in the SVAC should have some input into how the new ambulance was designed. Meehan noted that it had been agreed in years past that, should funding become available, the ambulance corps would be involved in the purchase/design of the vehicle. Noll questioned whether the city should seek funding for the SAAMS Marine Mammal Project under this list. PAGE 55 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 I RECESS: The meeting was recessed at 9: 05 p.m. and reconvened at 9:20 p.m. Schaefermeyer recommended the addition of an item requesting funding for the Alaska Marine Mammal Center. He suggested the inclusion of $250,000 for this project. He noted that this should allow for design and initial administrative staffing for the proposed facili- ty. He asked for Council concurrence in adding this amount. Meehan stated that he was all for this sugges- tion. He asked where this request would appear on the list. Noll stated that only the first two priorities would receive numbers; others would not be prioritized. Meehan noted that this project had good statewide support and was likely to receive funding. Hilton concurred. Noll noted that some $21,000 had been donated from the private sector. In addition, approximately $5,000 in legal fees had been donated. THE SAAMS FUNDING WAS ADDED TO THE LIST WITH NO OBJECTION FROM THE COUNCIL. I THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED AS AMENDED BY UNANIMOUS CONSENT. 3. 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, FINDING IT IN THE PUBLIC INTEREST TO REJECT ALL BIDS RECEIVED TO CONSTRUCT THE CAMELOT SUBDIVISION ELECTRICAL IM- PROVEMENTS. BURGESS MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-148; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer noted that the bids for the first phase of the project were opened on November 21st. Both of the two bids received greatly exceeded the project funds. Therefore, the administration recommended rejec- ting all bids at this time and re-bidding this phase in the spring along with the rest of the project. He noted that the remainder of the project would be funded as part of an assessment district. I THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 55 ELEC./ASSMTS/BIDS RESO: Rejecting all bids for Camelot Elec. Improvements 56 ADVERTISINGjCON- jRESO: Phoenix Log contract for display adv. CEA SETTLEMENTj RESO: Equity Mgmt. Agrmt. approved. PAGE 56 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 4. 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- ING A CONTRACT WITH THE SEWARD PHOE- NIX LOG FOR CITY DISPLAY ADVERTIS- ING. KRASNANSKY MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-142; THE MOTION WAS SECONDED BY BURGESS. Krasnansky stated that the city needed better communication with the public regarding legal fees. He added that, if the public was aware of all of the issues before the Council and the attorney, there would probably be less public criticism regarding legal fees paid by the city. He suggested an amendment to the resolution which would require a quarterly flyer in the log explaining legal fees. Noll stated that he agreed that communication could be improved; however, this resolution was not the place for it. Murphy noted that the agreement under consideration would approve a contract for display advertising for Council agendas, Parks and Recreation schedules, etc. THE QUESTION WAS CALLED AND THE RESOLUTION WAS APPROVED WITH SIX "YES" VOTES AND DUNHAM ABSTAINING. 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- ING THE CHUGACH ELECTRIC ASSOCIA- TION, INC., EQUITY MANAGEMENT PLAN. KRASNANSKY MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-146; THE MOTION WAS SECONDED BY DUNHAM. Krasnansky asked for an explanation of the agreement and how this would affect local utility rates. Diener stated that CEA had applied with APUC to change its rate structure formula. Homer Electric and Matanuska Electric objected to the first filing. This new agreement setting forth a new formula for figuring the way wholesale rates are set had been approved by REA and MEA. He noted that this agreement would have very little effect on the city of Seward. PAGE 57 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 I THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. XI1. UNFINISHED BUSINESS: A. Pr090sal to issue an RFP for construction and oDeration of an additional shiD reDair site at SMIC. Schaefermeyer noted that this matter was continued from the last Council meeting. He noted that it had also been the subject of a work session on November 19th and was an agenda item for the Port Committee on November 21st. He stated that it was a consensus of the Port Committee to authorize the city to go forward with an RFP to invite proposals for lease of the remaining ship repair facility at SMIC. MEEHAN MOVED TO PROCEED WITH AN RFP FOR THE REMAINING SHIP REPAIR BERTH AT SMIC; THE MOTION WAS SECONDED BY BURGESS. Meehan noted that the Port Committee had unanimously supported this action. THE QUESTION WAS CALLED, AND THE MOTION WAS APPROVED BY UNANIMOUS CONSENT. I XIII. NEW BUSINESS: A. First Ouarter FY 1991 Financial ReDorts. Krasnansky asked if the city planned to offer the City employees a cost of living increase soon. He stated that there had been none for the past five years. Schaefer- meyer noted that he had hoped to include a salary increase for city employees last year; however, funds were not available. He stated that he did intend to include a COLA increase in FY 1992 if funds allowed. XIV. CITY MANAGER REPORTS: I A. ProDosal to issue non-recourse city bonds for Alaska Pacific University. Schaefermeyer noted that the city had been approached by APU and bond counsel regarding a proposal to use the city's small issuer IDB authority allowed under the IRS Tax Code for the purpose of selling IDB's to refinance some outstanding loans the University had with Security Pacific Bank. They hoped to refinance $7.3 Million in taxable interest notes with non-taxable notes. Schaefermeyer noted that these would be non-recourse bonds which would not be issued under the full faith and credit of the city. As part of the proposal, APU had agreed to contribute either 3 or 4 four-year tuition scholarships for Seward High School students, or one 4-year scholarship per year for four years. In addition, the city would receive under the 57 SMIC: Auth. to proceed w /RFP to construct & operate a ship repair station at SMIC 58 PAGE 58 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 Code up to 1% of the value of the issue as an economic impact fee. Schaefermeyer noted that he had proposed a $50,000 flat fee plus all city out of pocket expenses. Schaefermeyer noted a letter from Kit Duke advising that DOT agreed that the 35 mph speed lir. ~ t. should be extended beyond Hemlock Street. xv. COUNCIL DISCUSSION: DUNHAM stated that a local citizen had com- plained about changing the name of Cottonwood Avenue to Sea Lion Avenue since all Forest Acres streets were named for trees. She suggested that the city begin naming its streets for prominent figures from the city's past, such as Brown & Hawkins, L.V. Ray, and Lily James, first post master for the city of Seward and original owner of Brown & Hawkins. MEEHAN stated that he had watched the Petersb- urg City Council meeting on television while visiting Petersburg last week. He stated that he was impressed with their outgoing Parks and Recreation Director, soon to be employed by the city of Seward. NOLL thanked all law enforcement personnel involved in the recent drug investigation and arrests. Noll also noted that he had researched hiring a firm to review the city's legal needs while at AML. He found that Peat Marwick had the expertise to do this. He asked the City Council to consider contracting with someone such as Peat Marwick to review the city's legal needs and services it has received. He noted that he would work with the administration to develop a proposal to bring back to the Council at the next meeting. XV1. CITIZENS' DISCUSSION: JONATHAN SEWALL, Forest Acres, thanked the Council for moving the bike trail and Swetmann sidewalk up to the number two position on the capital projects priority list. Sewall stated that he was feeling disenfranchised by having two Councilmembers barred from voting on all hospital issues. He stated that so long as there was no direct financial gain, the hospital employ- ees should be allowed to vote on every issue. SANDRA WASSILIE, Lowell Canyon Road, thanked the Council for supporting the pedestrian pathway on Swetmann. She noted that the city now had a parent/tea- cher/student organization and a Seahawk booster club to support the two schools. I I I 1;/"\ f/J;-) PAGE 59 REGULAR MEETING - NOVEMBER 26, 1990 VOLUME 26 XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: BURGESS asked Sewall to seek some additional funding for the Swetmann sidewalk from the borough. KRASNANSKY thanked Sewall for his conunent. He stated that his request to pull Resolution No. 90-143 from the Consent Calendar was in response to a question from a citizen, and he had felt frustrated that he had been unable to point out this concern. MEEHAN stated that Krasnansky could always go to the administration to get clarification on any item on the agenda, or he could ask another Councilmember to bring it up at the meeting. XVII 1. ADJOURNMENT: The meeting was adjourned at 10:24 p.m., and after a short recess, the Council reconvened in Executive Session to discuss a legal matter. . "[, " c/\.-. .'" " . . . ~ ~ : h , ")j>, '",;." I -~.-' ,_ .- -~- -------~--~~------------------------------------------- PAGE 59 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 1. CALL TO ORDER: The December 10, 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 Clerk Murphy led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll and councilmembers Dunham, Hilton, Meehan and Sie- minski (Burgess and Krasnansky were excused) 60 PAGE 60 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 Present also: City Manager Schaefermeyer, City Attorney Arvidson, Assis- tant City Manager Yanez, Engi- neering and utilities Manager Diener, Port Marketing Director Gates, Finance Director Gif- ford, Parks and Recreation Di- rector Chaffin, Deputy Harbor- master Ransom, Electrical Engi- neer Calvert, Hospital Adminis- trator Rabb, Hospital Financial Officer Mastascusa, Community Development Director Martin, Chamber of Commerce Director carpenter, Police Chief Bencar- dino and City Clerk Murphy IV. APPROVAL OF MINUTES: HILTON MOVED TO APPROVE THE NOVEMBER 26, 1990, REGULAR AND SPECIAL MEETING MINUTES AS WRITTEN: THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITHOUT OBJECTION. V. APPROVAL OF REGULAR MEETING AGENDA: MEEHAN MOVED TO APPROVE THE REGULAR MEETING AGENDA AS PRESENTED: THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer requested that Item "N" be moved from the Consent Calendar to the Regular Meeting Agenda as New Business Item "B". He noted that Anderson was present and might wish to address this issue with the Council. Noll stated that this would become Item "A", relettering the current "A", "B". Schaefermeyer also requested withdrawal of Item 4 under Resolutions (90-154). He stated that this item would come back to Council in January. Hilton asked to remove Items Band C from the Consent Calendar to "Resolutions" as Items 7 and 8. Dunham asked to move Item "G" from the Consent Calendar to New Business Item "C". THE QUESTION WAS CALLED, AND THE AGENDA WAS APPROVED AS AMENDED WITHOUT OBJECTION. V1. BOROUGH ASSEMBLY REPORT: Kenai Peninsula Borough Assembly Representative Jonathan Sewall was not present, and no report was given. I I I 61 PAGE 61 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 VII. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARING: CHARLES COLLIER, Mile 1.7, Nash Road, spoke regarding proposals to rezone park lands in Seward for other uses. He stated that the city had done wonders for building a good job base for people in town at the expense of park lands. He stated that every time an acre of park land was given up, what was left became more valuable. He asked the Council to keep this in mind when making decisions regarding development. JOANNE WILEY, 2099 Dora Way, spoke regarding Ordinances 638 and 639. She stated that, as a resident, she would hate to see park land used for other purposes. She stated that she agreed a space was needed for the Ferry and cruise ships, but not if it meant the loss of parks and ballfields. KARIN STURDY, 2015 Dora Way, spoke regarding Ordinances 638 and 639. She suggested re-evaluating the 1964 condemnation of this land by the Corps. She also asked that the Council weigh the needs of the people as well as the Ferry, cruise ships, the Mammal Center, etc. KRIS ERCHINGER, 2015 Dora Way, expressed concern regarding the rezone of the park land along Seventh Avenue. She noted that seven people had spoken against the rezone at the Planning commission meeting on December 5th. In addition, she stated that few people in town were aware that the ordinances were on the agenda for introduction. She asked that action be postponed until maximum public input could be brought forth. She stated that she was not opposed to industrial develop- ment. However, quality of life issues must be addressed. She stated that the city should not rush into a decision of this magnitude. WALT SCZAWINSKI, 611 Monroe, stated that his concern was preservation of the greenbelt. He noted that all public comment at the Planning Commission was in opposition to the ordinances (NO. 638 & 639); nonethe- less, P&Z voted to recommend enactment. BRAD SNOWDEN declined comment. VIII. APPROVAL OF CONSENT CALENDAR: HILTON MOVED TO APPROVE THE CONSENT CALENDAR AS AMENDED; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED UNANIMOUSLY. The following actions were taken: A. Proposed Resolution No. 90-153, approving a purchase agreement between the city and Chugach Forest 62- PAGE 62 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 Products for extraction of gravel at Fourth of July Creek, was approved~ B. Moved to Regular Meeting Agenda~ C. Moved to Regular Meeting Agenda~ D. Perkins Coie invoice for legal services in the matter of City Y.. Seward Ships Chandlery in the amount of $843.19 was approved for payment~ E. ABCB notification of applications for renewal of liquor licenses was noted as follows, and the Clerk was instructed to issue letters of non-objection to their renewal: BPO ELKS - Club License SEWARD TRADING CO. - Package Store License F. Applications for permits for Games of Chance and Skill as filed by the following were noted for information: SEWARD CHAMBER OF COMMERCE SEWARD EMBLEM CLUB #250 SEWARD JR/SR HIGH SCHOOL AMERICAN LEGION AUXILIARY SACRED HEART CATHOLIC CHURCH G. Moved to Regular Meeting Agenda~ H. Memorandum from Gifford regarding changes to the KPB Sales Tax Code was noted for information~ I. Memorandum from Gifford regarding a JIA Safety Award received by the city was noted for informa- tion~ J. Third Quarter 1990 Taxable Sales Report was noted for information~ K. Request to cancel the second meeting in December was approved~ L. First Quarter Fiscal Year 1991 Seward General Hospital Financial Report was noted for informa- tion~ M. Memorandum from Kerry Martin regarding the Army/Air Force Recreation Camp lease proposal was noted for information~ and N. Moved to Regular Meeting Agenda. I I I r.' ";' ~}lf) PAGE 63 REGULAR MEETING - DECEMBER lO, 1990 VOLUME 26 IX. PUBLIC HEARINGS: A. Notice of public hearing as posted and published as required by law regarding the following was noted, and the public hearing was opened: 1. Proposed Lease of Tract 1, Waterfront Tracts, to the University of Alaska for 100 years from July 1, 1970, through June 30, 2069 (201 Railway Avenue) ; 2. Quitclaim Deed of Lots 1-7, Block 23, and Lots l-7, Block 24, Federal Addition (within 2 Lakes Park), from the University of Alaska to the city of Seward; and 3. Issuance of a Land Use Permit by the University of Alaska to the city of Seward effective July 1, 1989, through June 30, 2088, for development and maintenance of a fish spawning channel within SW 1/4, S 27, T1S R1W, Seward Meridian (Jap Creek Area). 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, Noll noted by title only a proposed ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CHANGING THE LAND USE AND ZONING MAPS OF THE CITY OF SEWARD FROM PARK TO INSTITU- TIONAL FOR THAT AREA OF THE WATER- FRONT PARK BETWEEN AN EASTERLY EX- TENSION OF A STREET AND C STREET. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 638; THE MOTION WAS SECONDED BY HILTON. DUNHAM MOVED TO AMEND BY ADDING A REVERSION CLAUSE WHICH WOULD CAUSE THE ZONING TO REVERT BACK TO PARK LAND USE IF THE PROJECTS IN QUESTION DID NOT MATERIALIZE; HILTON SECONDED THE MOTION. Arvidson stated that he would attempt to draft the language for such an amendment for the next meeting. 64 PAGE 64 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 Dunham stated that such an amendment would probably make the public feel a bit easier about the proposed change. She stated that she would make the same amendment to Ordinance No. 639 and let Arvidson decide which one was appropriate. Hilton concurred with Dunham. He stated that the public should understand that this was just a con- ceptual plan at this time. In fact, the study currently being conducted might show that this development would not work in this location. Schaefermeyer stated that the south expansion of the SBH was being studied; however, the Ferry dock and terminal could be constructed without the wave barrier or the south expansion. He asked if the contract zone concept was to be tied to both projects or the expansion only. Dunham stated that she wanted to include both in the amendment language. DUNHAM WITHDREW HER AMENDMENT; HILTON CON- CURRED. The Clerk was instructed to have amendment language ready for Council review prior to the January 14th meeting. Meehan stated that he agreed that the citizens should be informed before action was taken. He stated that he, too, was concerned about the type of development which would go into this area. He noted that, if devel- oped properly, this area could be more attractive and create a more parklike setting than was currently in place. He further noted that local citizens could have a real impact on how the property was developed. Dunham stated that the city had been trying since the Ferry came to Seward in 1964 to get the state to invest in construction of a dock in Seward. She stated that this was the first time in all that time that the state had expressed an interest in putting money into dock facilities in Seward. She also noted that IMS had committed to investing in this dock. Hilton stated that in september he had travel- led on the East Coast and had taken a ferry across Chesapeake Bay. He noted that these ferry terminals were attractive and not at all offensive. He stated that this type of development was not smoke stack development, and the city was in a position to control how the development took place. I I I 65 PAGE 65 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 THE QUESTION WAS CALLED AND THE MOTION PASSED WITHOUT OBJECTION. Public hearing was scheduled for January 14, 1991. 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, MODIFY- ING TABLE 15.01.225, LAND USES AL- LOWED, WITHIN THE SEWARD ZONING CODE, REGARDING PUBLIC DOCKS, MARI- NAS AND ASSOCIATED PASSENGER TERMI- NALS. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 639; THE MOTION WAS SECONDED BY DUNHAM. Dunham asked that the attorney compose a reversionary clause for this ordinance as well. THE QUESTION WAS CALLED, AND THE MOTION PASSED WITHOUT OBJECTION. Public hearing was scheduled for January 14, 1991. 3. 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, ADOPTING THE 1990 EDITION OF THE NATIONAL ELECTRICAL CODE. MEEHAN MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 640; THE MOTION WAS SECONDED BY DUNHAM AND CARRIED WITHOUT OBJECTION. Public hearing was scheduled for January 14, 1991. 4. 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 15.10, ARTICLE 4, REGARDING APPEAL PROCEDURES TO THE SEWARD ZONING CODE. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 64l; THE MOTION WAS SECONDED BY MEEHAN AND CARRIED WITHOUT OBJECTION. Public hearing was scheduled for January 14, 1991. 66 PAGE 66 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 5. 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 2.05, RECORDS, REGARDING PUBLIC ACCESS TO MUNICIPAL RECORDS. HILTON MOVED TO INTRODUCE PROPOSED ORDINANCE NO. 642; THE MOTION WAS SECONDED BY MEEHAN. Arvidson stated that he had begun work on this ordinance in the spring when the Legislature made several amendments to state law regarding access to pUblic records. He stated that this ordinance was intended as a means to come into conformance with state law before it became a problem. Dunham stated that several areas concerned her a great deal. She stated that she preferred to err on the side of maximum access to public records. She said that she recognized that there had been instances in the past when members of the public had harassed the city in their quest for records. She stated that she was not opposed to the ordinance, but wanted to take a good look at it before changing the Code. THE QUESTION WAS CALLED, APPROVED BY UNANIMOUS CONSENT. scheduled for January 14, 1991. AND THE MOTION WAS Public hearing was B. Ordinances for Public Hearing & Enact- ment: 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, ADOPTING FINDINGS OF FACT AND CONCLUSIONS OF LAW REGARDING THE COUNCIL'S DECISION WITH RESPECT TO VEHICLE FOR HIRE PERMITS HELD BY YELLOW CAB COMPANY OF SEWARD. HILTON MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-l50; THE MOTION WAS SECONDED BY MEEHAN. Arvidson noted that he had spoken with Yellow Cab's attorney, George Dickson, on Friday. Dickson had I I I 67 PAGE 67 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 made a couple of suggested changes which Arvidson recommended the Council incorporate into the final version of the Findings as follows: Page 2, Footnote #1 - Add "alleged" before "sales of drugs": Page 3, section III, Second Paragraph, Second Sentence, should read "revoked" rather than "suspended": and on Page 5, reword section VI, Sentence No.1, to clean up grammar. THERE WAS NO OBJECTION TO INCORPORATION OF THESE CHANGES. HILTON ASKED TO AMEND PAGE 6, LAST PARAGRAPH, TO DELETE REFERENCES TO SEWARD GENERAL HOSPITAL AND OTHER HEALTH CARE PROVIDERS. Arvidson stated that SGH and local health care providers had been included in the language to take advantage of any special knowledge and resources, if any, available in town, not to involve them in policy making decisions. Hilton stated that he had not wanted the public to see the ordinance as make work for the local hospital. Arvidson suggested the addition of "after consultation with" just before SGH. THERE WAS NO OBJECTION FROM COUNCIL. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 2. 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, AUTHO- RIZING A COOPERATIVE LAND AGREEMENT WITH THE UNIVERSITY OF ALASKA RE- GARDING TRACT 1, SEWARD WATERFRONT TRACTS, LOTS 1-7, BLOCK 23, AND LOTS 1-7, BLOCK 24, FEDERAL ADDITION. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-15l: THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer stated that this would conclude a number of years of discussion and negotiation with the university of Alaska on several issues. First it would extend the current lease where the Seward Marine station was located to a 99-year lease, so long as the property was used for marine research and a public visitor facility. As a part of this agreement, the city and borough had agreed to the vacation of property located on 68 PAGE 68 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 the hillside above the IMS facility for construction of a salt water storage tank for the University's wet lab facilities. The University had agreed to the quitclaim of land in the middle of the Two Lakes Park area behind the AVTEC administration building on Second Avenue. In addition, the University was allowing the use of some land in the vicinity of Jap Creek near the land fill for a fish enhancement project which was required under a Fish & Game/Corps permit held by the city. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT. 3. 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- ING PREQUALIFIED BIDDERS FOR CON- STRUCTION OF THE SEWARD INTERTIE PROJECT. HILTON MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-152; THE MOTION WAS SECONDED BY SIEMINSKI. Arvidson stated that this resolution completed the pre-qualification process begun last summer. He stated that this was intended to make the bidding process a shorter one. The result of this process was that three of the five bidders were qualified to bid, and two were not qualified. He stated that he had spoken to represen- tatives of Irby (a principle in both of the unqualified bids), and they were aware that this resolution was being brought to the Council this evening. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 4. Proposed Resolution No. 90-l54 was deleted from the Agenda. 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- ING A PROFESSIONAL SERVICES AGREE- MENT WITH KPMG PEAT MARWICK TO PER- FORM A FIXED ASSET REVIEW AND FINAN- CIAL NEED ANALYSIS FOR THE CITY. I I I 69 PAGE 69 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-155; THE MOTION WAS SECONDED BY DUNHAM. Schaefermeyer noted that the Council had identified the need to review capital replacement needs of the city when it went through the budget process last spring. After considerable discussion, Council asked the administration to look at the availability of consulting firms to prepare a five year planning document for the ci ty to use in prepa'ring for and funding essential capital facilities replacement. KPMG Peat Marwick, city auditors, provided the city a proposal for performing this project. The proposal was on point with the Coun- cil's request and could be completed prior to the FY 92 budget process. He stated that cost of the project would be allocated among the general fund and the enterprise funds of the city. Schaefermeyer recommended approval of the resolution. Meehan stated that this was a good approach. However, he wanted the contractors to know that they were working for the Council and were not hired to support capital projects desired by the administration. Noll clarified that this was a depreciation study, not a capital projects wish list. Noll asked that a penalty clause be included in the contract should the project not be complete by the March date referenced by the city manager. Schaefermeyer stated that he would address this with Peat Marwick. THERE WAS NO OBJECTION TO THE PROPOSED PENALTY CLAUSE, AND THE CITY MANAGER WAS INSTRUCTED TO PROCEED WITH THIS CHANGE. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 6. 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, AUTHO- RIZING THE PURCHASE OF SECURITY LIGHTING FOR THE SEWARD MARINE IN- DUSTRIAL CENTER BOAT STORAGE AREA. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-158; THE MOTION WAS SECONDED BY HILTON. Schaefermeyer stated that this resolution would allow the purchase of two high mast light assemblies to be placed in the boat storage area at SMIC to discourage 70 PAGE 70 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 vandalism and to provide adequate illumination in the area. Dunham stated that she felt the sooner lighting was in place the better. Diener stated that the lights were identical to the ones used at the prison. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. The meeting was recessed at 8: 40 p. m. and reconvened at 8:53 p.m. Recess: 7. 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 PURCHASE OF A I5-PASSENGER VAN FOR THE PARKS & RECREATION DE- PARTMENT. HILTON MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-156; THE MOTION WAS SECONDED BY DUNHAM. Hilton stated that he was not opposed to the purchase of the van, but had pulled this item from the Consent Calendar to ask how old the bids were and to suggest that, if they were not fairly current, it might be worth bidding again. He referenced recent newspaper articles regarding the difficulty dealers had experienced trying to get rid of these vans. Schaefermeyer stated that the city received bids on November 19th. Hilton withdrew his suggestion to rebid. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED WITHOUT OBJECTION. 8. 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, RATIFY- ING THE KENAI PENINSULA CAUCUS 1990 STATEMENT OF LEGISLATIVE POSITIONS. MEEHAN MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-157; THE MOTION WAS SECONDED BY DUNHAM. Hilton stated that he was concerned that the position paper failed to address the health care needs of I I I 7J. PAGE 71 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 the borough. He stated that he could not support the resolution without such a statement. Schaefermeyer stated that he had attended the annual meeting of the Caucus along with the local Chamber of Commerce representative. He stated that he (Schaefer- meyer) had raised the issue of hospital needs at the annual meeting. Due to the time constraints and the difficulty finding appropriate language, it was agreed that this issue would be addressed by specific resolution of the Caucus. Schaefermeyer stated that he had drafted such a resolution which would be voted on by the Caucus at its next meeting. Similarly, the Caucus would be addressing nursing home needs. Noll noted that the Alaska Conference of Mayors had drafted a couple of resolutions for approval by the Alaska Municipal League dealing with health needs of the entire state. Noll suggested that the Caucus consider resolutions similar to the ones developed by the AML and the Conference of Mayors in November. Noll stated that he agreed with Hilton and suggested that this resolution be passed subject to Kenai Caucus approval of a resolu- tion such as the ones presented at AML. Hilton concurred with this suggestion. Schaefermeyer stated that there was a Kenai Caucus reception scheduled tomorrow with area legislators to go over area needs, wi th the next regular meeting scheduled for January 18th. HILTON MOVED TO AMEND SECTION 2 OF THE RESOLU- TION TO MAKE THE EFFECTIVE DATE "AFTER ADOPTION BY THE CAUCUS OF A POSITION ON HEALTH CARE ISSUES EQUIVALENT TO THOSE ADOPTED BY THE ALASKA MUNICIPAL LEAGUE"; THE MOTION WAS SECONDED BY NOLL AND CARRIED BY UNANIMOUS CONSENT. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED AS AMENDED WITHOUT OBJECTION. XII. UNFINISHED BUSINESS: A. policv decisions reqardinq the proposed druq testinq ordinance. Arvidson stated that his memorandum attempted to help the Council through a series of policy issues before proceeding with the drafting of a drug testing ordinance. The first question to ask was why proceed with a drug testing program at all. Was the purpose to apprehend drug dealers or to protect the public from drivers who were under the influence of drugs or alcohol? He stated that, in order for him to draft the ordinance, he needed to know the Council's purpose. 7Z PAGE 72 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 Hil ton urged the attorney to draft the or- dinance to protect the passenger and the public. He stated that it was not the city's place to try to protect a citizen from himself; however, it was proper to address public safety. Meehan concurred. Dunham asked about drug testing of city emplo- yees who drive graders and other large scale vehicles. She stated that she would not endorse wholesale drug testing, but would like to look at testing of certain employees whose jobs entailed operating city equipment. Schaefermeyer stated that he would like to see the Council adopt a policy dealing with drug and alcohol abuse among city employees. He stated that the adminis- tration had taken a pro-active stance in dealing with members of the city work force who were experiencing drug or alcohol abuse problems to see that they availed themselves of treatment programs. He stated that the administration very actively monitored the city work- force, and this had worked well for the city; however, he was not prepared to recommend drug testing for city employees at this point. He noted that there were legal issues which had been before the Courts regarding this issue, and he did not want the city to be on the leading edge with this type of program. Dunham stated that she remembered the employee drug and alcohol abuse policy ordinance presented by Schaefermeyer earlier in the year. She stated that she was opposed to the tone of the ordinance - the "us against them" approach. She said that if the city adopted such a policy, it should not be so accusatory. Sieminski agreed with Hilton's and Meehan I s statements. In response to a question from Noll, Arvidson stated that the courts had upheld the right to require mandatory and random drug testing of airline pilots and some police officers. So far, Wasilla was the only Alaskan community requiring drug testing of employees. However, school bus drivers, including those employed by the Kenai peninsula Borough School District were current- ly subject to drug testing. Schaefermeyer stated that he was not prepared to come forward with a drug testing program for city employees. He stated that with Yellow Cab, a problem had been identified, and that was the area he suggested ad- dressing at this time. Noll concurred that public safety was an obvious area of concern. He asked that others within the I I I PAGE 73 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 city be considered for a drug testing program when the vehicle for hire issue was reviewed. XIII. NEW BUSINESS: A. Anderson Lease Proposal. Schaefermeyer noted that he had provided a staff memorandum to Council along with a letter previously sent to Anderson Seafoods by Kerry Martin. Today, Ms. AndersOn had presented the city with a letter outlining her position with regards to her proposal to lease city tidelands in the area of the Lowell Tunnel outfall. He said Anderson had stated that she might be interested in developing some of the property nearest her dock before the diversion tunnel issue was settled. She had indicated that she would be out of state for several weeks after the first of the year and would not be available at that time to address this issue with the city. MARGARET ANDERSON, 200 Bear Drive, stated that she needed space to expand and to conduct her business. She asked Council to seriously consider her request to lease the property in question. Noll noted a recent update on an old idea to flume the Lowell Tunnel outfall over the roadway, providing the city with a couple of additional acres of developable property. Anderson stated that if the flume approach were taken, the outfall would have to go out into deep water to avoid interference with water traffic to her dock. Noll asked if this issue was worthy of a work session on the part of the Council. Schaefermeyer stated that it would not be inappropriate, given the number of parties and issues involved. IN RESPONSE TO A QUESTION FROM MEEHAN, NOLL RULED THAT MEEHAN HAD NO CONFLICT WITH REGARDS TO THE ENGINEERING OF THE TUNNEL OUTFALL. In response to a question from Meehan, Schaef- ermeyer stated that it would be at least one year before the Corps said yes or no to the flume proposal. Schaef- ermeyer stated that the bid to replace the bridge was out at the present time. He noted that the bridge was not safe and should be taken care of immediately. Dunham stated that she was concerned that Anderson had first approached the city in 1988, and the city had not taken action. In addition, since Anderson was asking to take the risk, why was the city causing further delay? Dunham agreed that a work session was in order. 73 74 PAGE 74 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 Hil ton asked why two years elapsed with nothing happening. Schaefermeyer stated that the city did not aggressively pursue negotiation of the lease. He added that there was no contact either way for a number of months. Schaefermeyer suggested that the city also address the issue of increased traffic on Lowell Point Road by sports fishermen in summer, the result of fisheries enhancement by CIAA and state Fish & Game. Noll instructed the clerk to schedule a work session on December 20th immediately following the Noon special meeting to approve the APU funding resolution. B. Trade Board resiqnation. vacancy and appointments. Noll noted Murphy's memorandum setting forth the recommendations of the Trade Board that the Council accept Sharon Anderson's resignation from the Board and that the Council further declare the seat held by Jamie Rose to be vacant since he had been absent from the city for several months and intended to be out for several more. He further noted that Murphy had enclosed two applications for the vacant seats from Hugh Darling (who had applied for a seat in October when vacancies had been filled) and Stan Flugel. THERE WAS NO OBJECTION FROM COUNCIL TO ACCEPT- ING SHARON ANDERSON'S RESIGNATION AND DECLARING THE SEAT HELD BY JAMIE ROSE TO BE VACANT. Sieminski asked that the positions be adver- tised. Noll stated that the Council had indicated that Darling would be appointed to the Board if a vacancy occurred, and he felt honor-bound to appoint him. NOLL APPOINTED HUGH DARLING TO ONE OF THE TWO VACANCIES; THERE WAS NO OBJECTION FROM THE COUNCIL. Meehan stated that the Board had had difficulty getting a quorum since August, and he suggested that both appointments be made immediately. Hilton stated that since these normally were three-year appointments, and this appointment was for less than one year, he saw no problem with making this appointment without advertising. Dunham stated that the members of the board were very busy people and travel quite a bit, resulting in problems with quorums. She stated that they were virtually crippled at this time, and she agreed that these appointments should be made without advertising. Sieminski concurred. I I I 7.5 PAGE 75 REGULAR MEETING - DECEMBER 10', 1990 VOLUME 26 NOLL APPOINTED STAN F;LUGEL TO THE REMAINING TRADE BOARD VACANCY; THERE WAS NO OBJECTION FROM COUN- CIL. C. Dairy Hill Pavinq. Dunham stated that the bond issue for paving city streets was sold to the public with a promise that Dairy Hill Road would be paved. She stated that the city should honor this commitment, and she hoped that,the promises in Diener's December 5, 1990, memorandum would be kept. Diener noted that paving could not have proceeded earlier because there was a question about whether SLAC would extend the sewer line to its group home as well as several questions about Corps permits. SLAC had subsequently decided that the sewer line was not to be extended, and paving would go forward. In response tQ a question from Noll, Diener stated that guard rails would go in where recommended by traffic engineers. XIV. CITY MANAGER REPORTS: Schaefermeyer introduced Lucy Chaffin, newly appointed Parks and Recreation Department Director. A. Proposal from KPMG Peat Marwick to conduct a review of the city's procurement and use of leqal services. Schaefermeyer stated that he had requested this proposal as a result of Council concern expressed earlier in the year. He stated that, if Council desired, he would bring this back to the Council for award of contract at the January 14th meeting. Hilton noted that Peat Marwick was suggesting using the same people to perform this study as the depreciation study approved earlier in the meeting. He asked what the time frame would be for completion of the legal services study. Schaefermeyer stated that the two studies would be done simultaneously, wi th the legal services portion taking less time. Hilton stated that he was concerned about the firm trying to do two projects at once. He also stated that he hoped comparative cities selected were not selected on population alone, but on the amount of development and projects before the city. Meehan concurred with Hilton's remarks about comparable sized cities. He also stated that he wanted the study to address how the legal fees were paid - from insurance, enterprise funds, projects, general fund, etc. Dunham stated that it would be productive to touch on some of the smaller communities to show what 'i'~ I . PAGE 76 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 they are not doing so that the community could see how well off Seward really was. Noll stated that he appreciated comparisons. However, he wanted to see a systems study or a program audit with a look at the city's needs, how we are doing it now, and how we might better do it. He said he did not want to use comparisons as a starting point. Noll also stated that he would like to meet a couple of the team members before being asked to cast his vote on the proposed contract. Meehan stated that he understood that the city had been approached by several legal firms since the AML meeting. He stated that he would like to respond to them with a thank you and a statement that the city was not advertising for legal services at this time. C. Schaefermeyer noted that he would like a special meeting on December 20, 1990, to approve a funding resolution for the proposed Alaska Pacific University bond sale. He noted that he had received a draft memorandum of understanding from the university offering four 4-year tuition scholarships to Seward High School graduates. He further noted that he had offered to reduce the impact fee to $25,000, rather than $50,000. In addition to this fee and the four scholarships, the University would be liable for full city costs associated with the bond sale. Schaefermeyer stated that the bond closing was scheduled for December 31st in Anchorage. He noted that the closing documents would probably be signed in advance and made available to bond Counsel for closing. Schaefermeyer further noted that the required TEFRA hearing would be conducted at 9:00 a.m. on Monday, December 24, 1990. xv. COUNCIL DISCUSSION: HILTON congratulated and thanked the staff for its safety record which led to the city's receipt of a JIA safety award. NOLL thanked Doug Lechner for his generous contribution of a $2500 prize which he donated back to Rotary, SAAMS and the Chamber of Commerce. " MURPHY noted Federal Subsistence Board meeting in Anchorage on December 17, 1990, beg inning at 8: 30 a.m., at the Captain Cook Hotel. XVI. CITIZENS' DISCUSSION: DON WHITMAN, Shipyard Manager for Seward Ships Chandlery, extended SSC's gratitude to the city for I I I 77 PAGE 77 REGULAR MEETING - DECEMBER 10, 1990 VOLUME 26 another year of support of ship repair activities at SMIC. He invited everyone to an open house at the SSC office at the Marine Industrial Center on December 28th. CHRIS GATES, Johnston Road, reported that the National Marine Fisheries Service had ruled that sea lions are threatened, not endangered, which was good news for the Alaskan fishing industry. He also reported that Icicle Seafoods had announced that it was being offered for sale. Gates noted that the Regional citizens Advisory Committee was responsible for publicizing a recent incident involving a crack in the hull of a vessel transporting crude oil to California. SCHAEFERMEYER thanked the public works and electric department crews for donating their personal time to put up downtown Christmas decorations. BRAD SNOWDEN, 525 sixth Avenue, commended Council for addressing all areas of drug use affecting public safety. WAYNE CARPENTER, 325 Fifth Avenue, announced that the Chamber and the KPB/EDD were Jointly hosting a seminar Wednesday morning entitled "How to Finance Small Business." He encouraged community members to attend. XVII. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: NOLL stated that the impending sale of Icicle Seafoods was being closely monitored by the city. XVIII. ADJOURNMENT: The meeting was adjourned at 10:30 p.m. ~(~ William C. Noll Mayor ....0 ( j ,\ PAGE 78 SPECIAL MEETING - DECEMBER 20, 1990 VOLUME 26 I. CALL TO ORDER: The December 20, 1990, 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 Krasnansky led the pledge of allegiance to the flag. III. ROLL CALL: Present were: Mayor Noll ancl Councilmembers Dunham, Hilton, Krasnansky and Sieminski (Burgess and Meehan were excused) Present also: City Manager Schaefermeyer, Assistant City Manager Yanez, Manager of Engineering & utili- ties Diener, Port Marketing Director Gates, Finance Direc- tor Gifford, Community Develop- ment Director Martin 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 WITHOUT OBJECTION. V. CITIZENS' COMMENTS ON AGENDA ITEMS NOT SCHED- ULED FOR PUBLIC HEARINGS: None VI. SPECIAL ITEMS: 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, AUTHO- RIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $7,300,000 CITY OF SEWARD, ALASKA, REVENUE BONDS, 1990 (ALASKA PACIFIC UNIVERSITY PROJECT); THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT AND AN AGREEMENT TO ISSUE BONDS AND ASSIGNMENT TO SECURE I I I 79 PAGE 79 SPECIAL MEETING - DECEMBER 20, 1990 VOLUME 26 BONDS; AND AUTHORIZING AND APPROVING RELATED MATTERS. DUNHAM MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-159; THE MOTION WAS SECONDED BY KRASNANSKY. Schaefermeyer noted that this resolution would authorize the execution of documents necessary to sell up to $7.3 Million in IDB-type bonds for the benefit of Alaska Pacific University in order to allow the universi- ty to take advantage of lower tax-exempt financing of existing debt. He noted that, in exchange, the universi- ty had pledged four 4-year full tuition scholarships to graduates of Seward High School in addition to a $25,000 impact assessment fee to be paid to the city and reim- bursement of all city expenses associated with the bond sale. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT 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 12:18 p.m. 7~ Wllliam C. Noll Mayor (C~> ,,-,.,":r)'F Sf /tv~' "" ,';7~ c....."f "p ' .,,' ()'. 'cr;;, 0 .:c:' ...'.,~".. . "'~..~ {.<~ ~ ..'1 TI...,. ~ 0 '" .~ ::.., . '<ItP -..--, '\ ''\ u," (;,'1,:... 1 \'?J">...."t- -',)- -~'.. ",," .... , . -f!E OF '~\.~<":l '0n.,.,.. . . 79 PAGE 79 SPECIAL MEETING - DECEMBER 20, 1990 VOLUME 26 I BONDS; AND AUTHORIZING AND APPROVING RELATED MATTERS. DUNHAM MOVED TO APPROVE PROPOSED RESOLUTION NO. 90-159; THE MOTION WAS SECONDED BY KRASNANSKY. Schaefermeyer noted that this resolution would authorize the execution of documents necessary to sell up to $7.3 Million in IDB-type bonds for the benefit of Alaska Pacific University in order to allow the universi- ty to take advantage of lower tax-exempt financing of existing debt. He noted that, in exchange, the universi- ty had pledged four 4-year full tuition scholarships to graduates of Seward High School in addition to a $25,000 impact assessment fee to be paid to the city and reim- bursement of all city expenses associated with the bond sale. THE QUESTION WAS CALLED, AND THE RESOLUTION WAS APPROVED BY UNANIMOUS CONSENT OF THE COUNCIL. VI. COUNCIL DISCUSSION: None I VII. CITIZENS' DISCUSSION: None VII I. COUNCIL & ADMIN. RESPONSE TO CITIZENS' COM- MENTS: None IX. ADJOURNMENT: The meeting was adjourned at 12:18 p.m. ~ Wllliam C. Noll Mayor I (C~ .<.c\'~ rit Sf /tv. ~> . '... .', .; AI . "e C> ..",~?O ~' .".:,:' "'~.""""" .:0.... . '1 . ~~;~; '.. ~ . :... , L ,.1" ~1,...1 .. '3, -. -1\>-., -; " "~Po '\. . ~;\ \.f'.' C;'l/... 1 \'J~ ....... . /' "-: ...-~..., ~,- . . :!E OF ~\.~<":l '~r'