HomeMy WebLinkAbout1990 City Council Minutes
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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:
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CIT.DISCUSSION:
(B. Snowden)
~o
RESO/FERRY: (Opposing
seasonal disruption
of service of the
M/V Tustumena)
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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.
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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.
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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.
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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".
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RESO/PURCHASING:
(Travelifr)
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CLAIM FOR DAMAGES:
(Hubbard Claim
DENIED)
RE- : (Amendment
approved)
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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
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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)
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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:
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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
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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.
-
,-
....
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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
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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'
.
!,;:
,
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"
:"c..
,.
J40
.'
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..
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:'
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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.
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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.
,
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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
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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
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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
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;:-..~ ~~
~ · f SEAL :
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-'>. J'l""~~ ,t,~~"~-+-'"
'~~F ,r.,\..t-
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Mayor
I
I
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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
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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
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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
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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.
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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
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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
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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
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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
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------------------------------------------------------
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
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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
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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
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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
('\!
. .
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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
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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
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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
('"
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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
. .
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.
--------------------------------------------
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:
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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
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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
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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.
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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.
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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
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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.
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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.
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--~~-~------------------------------------
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
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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
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~~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.
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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
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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.
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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
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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
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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:
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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
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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
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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
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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.
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133
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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
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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.
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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.
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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
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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
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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
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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
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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.
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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.)
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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
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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
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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~
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'. . .. t'~i' " *,1; l,,;
"', > -S'" ...... ..~.. .,".!";) ".rJ
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.:. ,'"it: (,'0 r-. ..-<(y'
',?>;,.,t;.;.Jr D.",j
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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
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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.
,.
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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.
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. 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
.
-.-
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:..._ >'. ~',A~ ' 1:'~.'" 'r _
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<.'.' tE Of ~~""
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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
"
-; .
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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.
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'. ".,_ . \0.,.' ^,,' PAGE 20 REGULAR MEETING - OCTOBER 29, 1990 VOLUME 26
j ,~' r -: ~\.'-{ ir~"
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.
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.
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- 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
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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:
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meeting was adjourned at 2:29 p.m.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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
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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
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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.
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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
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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.
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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.
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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
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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
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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
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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
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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
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